Document:

Exhibit
10.64

EXECUTION
COPY

 

SECOND AMENDED AND RESTATED
CREDIT AGREEMENT

dated as of December 15,
2006

among

LECG,
LLC,

as the Company

THE
VARIOUS FINANCIAL INSTITUTIONS PARTY HERETO,

as Lenders,

LASALLE
BANK NATIONAL ASSOCIATION,

as Administrative Agent,

BANK OF
AMERICA, N.A.,

as Syndication Agent

and

KEYBANK
NATIONAL ASSOCIATION, U. S. BANK NATIONAL ASSOCIATION  and WELLS

FARGO BANK, N.A., as Co-Documentation Agents

 

 

LASALLE
BANK NATIONAL ASSOCIATION

and

BANC OF
AMERICA SECURITIES, LLC,

as Co-Lead Arrangers and Book Runners

 

Table of Contents

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  SECTION 1

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.1

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  1.2

  	
   

  	
  Other Interpretive Provisions

  	
   

  	
  16

  
	
  1.3

  	
   

  	
  Exchange Rates; Currency Equivalents

  	
   

  	
  17

  
	
  1.4

  	
   

  	
  Agreed Currencies

  	
   

  	
  17

  
	
  1.5

  	
   

  	
  Change of Currency

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2

  	
   

  	
  COMMITMENTS OF THE LENDERS; BORROWING, CONVERSION AND
  LETTER OF

  	
   

  	
   

  
	
  CREDIT PROCEDURES

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  Commitments

  	
   

  	
  19

  
	
  2.2

  	
   

  	
  Loan Procedures

  	
   

  	
  20

  
	
  2.3

  	
   

  	
  Letter of Credit Procedures

  	
   

  	
  23

  
	
  2.4

  	
   

  	
  Commitments Several

  	
   

  	
  25

  
	
  2.5

  	
   

  	
  Certain Conditions

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3

  	
   

  	
  EVIDENCING OF LOANS

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.1

  	
   

  	
  Notes

  	
   

  	
  25

  
	
  3.2

  	
   

  	
  Recordkeeping

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4

  	
   

  	
  INTEREST

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  Interest Rates

  	
   

  	
  25

  
	
  4.2

  	
   

  	
  Interest Payment Dates

  	
   

  	
  26

  
	
  4.3

  	
   

  	
  Setting and Notice of Eurocurrency Rates

  	
   

  	
  26

  
	
  4.4

  	
   

  	
  Computation of Interest

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5

  	
   

  	
  FEES

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  Non-Use Fee

  	
   

  	
  26

  
	
  5.2

  	
   

  	
  Letter of Credit Fees

  	
   

  	
  26

  
	
  5.3

  	
   

  	
  Administrative Agent’s Fees

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6

  	
   

  	
  REDUCTION OR TERMINATION OF THE REVOLVING
  COMMITMENT;

  	
   

  	
   

  
	
  PREPAYMENTS

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  Reduction or Termination of the Revolving Commitment

  	
   

  	
  27

  
	
  6.2

  	
   

  	
  Prepayments

  	
   

  	
  27

  
	
  6.3

  	
   

  	
  Manner of Prepayments

  	
   

  	
  28

  
	
  6.4

  	
   

  	
  Increase in Commitments

  	
   

  	
  28

  
	
  6.5

  	
   

  	
  Repayments

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7

  	
   

  	
  MAKING AND PRORATION OF PAYMENTS; SETOFF; TAXES

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
   

  	
  Making of Payments

  	
   

  	
  29

  

 

 

 

	
  7.2

  	
   

  	
  Application of Certain Payments

  	
   

  	
  29

  
	
  7.3

  	
   

  	
  Due Date Extension

  	
   

  	
  30

  
	
  7.4

  	
   

  	
  Setoff

  	
   

  	
  30

  
	
  7.5

  	
   

  	
  Proration of Payments

  	
   

  	
  30

  
	
  7.6

  	
   

  	
  Taxes

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8

  	
   

  	
  INCREASED COSTS; SPECIAL PROVISIONS FOR EUROCURRENCY
  RATE LOANS

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.1

  	
   

  	
  Increased Costs

  	
   

  	
  32

  
	
  8.2

  	
   

  	
  Basis for Determining Interest Rate Inadequate or
  Unfair

  	
   

  	
  32

  
	
  8.3

  	
   

  	
  Changes in Law Rendering Eurocurrency Rate Loans
  Unlawful

  	
   

  	
  33

  
	
  8.4

  	
   

  	
  Funding Losses

  	
   

  	
  33

  
	
  8.5

  	
   

  	
  Right of Lenders to Fund through Other Offices

  	
   

  	
  34

  
	
  8.6

  	
   

  	
  Discretion of Lenders as to Manner of Funding

  	
   

  	
  34

  
	
  8.7

  	
   

  	
  Mitigation of Circumstances; Replacement of Lenders

  	
   

  	
  34

  
	
  8.8

  	
   

  	
  Conclusiveness of Statements; Survival of Provisions

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9

  	
   

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.1

  	
   

  	
  Organization

  	
   

  	
  35

  
	
  9.2

  	
   

  	
  Authorization; No Conflict

  	
   

  	
  35

  
	
  9.3

  	
   

  	
  Validity and Binding Nature

  	
   

  	
  35

  
	
  9.4

  	
   

  	
  Financial Condition

  	
   

  	
  35

  
	
  9.5

  	
   

  	
  No Material Adverse Change

  	
   

  	
  35

  
	
  9.6

  	
   

  	
  Litigation and Contingent Liabilities

  	
   

  	
  35

  
	
  9.7

  	
   

  	
  Ownership of Properties; Liens

  	
   

  	
  36

  
	
  9.8

  	
   

  	
  Subsidiaries

  	
   

  	
  36

  
	
  9.9

  	
   

  	
  Pension Plans

  	
   

  	
  36

  
	
  9.10

  	
   

  	
  Investment Company Act

  	
   

  	
  36

  
	
  9.11

  	
   

  	
  Regulation U

  	
   

  	
  36

  
	
  9.12

  	
   

  	
  Taxes

  	
   

  	
  37

  
	
  9.13

  	
   

  	
  Solvency, etc

  	
   

  	
  37

  
	
  9.14

  	
   

  	
  Environmental Matters

  	
   

  	
  37

  
	
  9.15

  	
   

  	
  Insurance

  	
   

  	
  37

  
	
  9.16

  	
   

  	
  Information

  	
   

  	
  38

  
	
  9.17

  	
   

  	
  Intellectual Property

  	
   

  	
  38

  
	
  9.18

  	
   

  	
  Burdensome Obligations

  	
   

  	
  38

  
	
  9.19

  	
   

  	
  Labor Matters

  	
   

  	
  38

  
	
  9.20

  	
   

  	
  No Default

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10

  	
   

  	
  AFFIRMATIVE COVENANTS

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1

  	
   

  	
  Reports, Certificates and Other Information

  	
   

  	
  38

  
	
  10.2

  	
   

  	
  Books, Records and Inspections

  	
   

  	
  40

  
	
  10.3

  	
   

  	
  Maintenance of Property; Insurance

  	
   

  	
  41

  
	
  10.4

  	
   

  	
  Compliance with Laws; Payment of Taxes and
  Liabilities

  	
   

  	
  41

  
	
  10.5

  	
   

  	
  Maintenance of Existence, etc

  	
   

  	
  42

  
	
  10.6

  	
   

  	
  Use of Proceeds

  	
   

  	
  42

  
	
  10.7

  	
   

  	
  Employee Benefit Plans

  	
   

  	
  42

  

 

 ii
 

 

 

	
  10.8

  	
   

  	
  Environmental Matters

  	
   

  	
  42

  
	
  10.9

  	
   

  	
  Further Assurances

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11

  	
   

  	
  NEGATIVE COVENANTS

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.1

  	
   

  	
  Debt

  	
   

  	
  43

  
	
  11.2

  	
   

  	
  Liens

  	
   

  	
  44

  
	
  11.3

  	
   

  	
  Restricted Payments

  	
   

  	
  45

  
	
  11.4

  	
   

  	
  Mergers, Consolidations, Sales

  	
   

  	
  45

  
	
  11.5

  	
   

  	
  Modification of Organizational Documents and
  Navigant Subordination Agreement

  	
   

  	
  47

  
	
  11.6

  	
   

  	
  Transactions with Affiliates

  	
   

  	
  47

  
	
  11.7

  	
   

  	
  Unconditional Purchase Obligations

  	
   

  	
  47

  
	
  11.8

  	
   

  	
  Inconsistent Agreements

  	
   

  	
  47

  
	
  11.9

  	
   

  	
  Business Activities

  	
   

  	
  47

  
	
  11.10

  	
   

  	
  Investments

  	
   

  	
  48

  
	
  11.11

  	
   

  	
  Fiscal Year

  	
   

  	
  48

  
	
  11.12

  	
   

  	
  Financial Covenants

  	
   

  	
  49

  
	
  11.13

  	
   

  	
  Signing and Performance Bonuses

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 12

  	
   

  	
  EFFECTIVENESS; CONDITIONS OF LENDING, ETC.

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.1

  	
   

  	
  Initial Credit Extension

  	
   

  	
  49

  
	
  12.2

  	
   

  	
  Conditions

  	
   

  	
  50

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 13

  	
   

  	
  EVENTS OF DEFAULT AND THEIR EFFECT

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.1

  	
   

  	
  Events of Default

  	
   

  	
  51

  
	
  13.2

  	
   

  	
  Effect of Event of Default

  	
   

  	
  52

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 14

  	
   

  	
  THE AGENTS

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.1

  	
   

  	
  Appointment and Authorization

  	
   

  	
  53

  
	
  14.2

  	
   

  	
  Issuing Lender

  	
   

  	
  53

  
	
  14.3

  	
   

  	
  Delegation of Duties

  	
   

  	
  54

  
	
  14.4

  	
   

  	
  Exculpation of Administrative Agent

  	
   

  	
  54

  
	
  14.5

  	
   

  	
  Reliance by Administrative Agent

  	
   

  	
  54

  
	
  14.6

  	
   

  	
  Notice of Default

  	
   

  	
  54

  
	
  14.7

  	
   

  	
  Credit Decision

  	
   

  	
  55

  
	
  14.8

  	
   

  	
  Indemnification

  	
   

  	
  55

  
	
  14.9

  	
   

  	
  Administrative Agent in Individual Capacity

  	
   

  	
  56

  
	
  14.10

  	
   

  	
  Successor Administrative Agent

  	
   

  	
  56

  
	
  14.11

  	
   

  	
  Administrative Agent May File Proofs of Claim

  	
   

  	
  56

  
	
  14.12

  	
   

  	
  Other Agents; Arrangers and Managers

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 15

  	
   

  	
  GENERAL

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.1

  	
   

  	
  Waiver; Amendments

  	
   

  	
  57

  
	
  15.2

  	
   

  	
  Confirmations

  	
   

  	
  58

  
	
  15.3

  	
   

  	
  Notices

  	
   

  	
  58

  
	
  15.4

  	
   

  	
  Computations

  	
   

  	
  58

  
	
  15.5

  	
   

  	
  Costs, Expenses and Taxes

  	
   

  	
  58

  

 

 iii
 

 

 

	
  15.6

  	
   

  	
  Assignments; Participations

  	
   

  	
  59

  
	
  15.7

  	
   

  	
  Register

  	
   

  	
  60

  
	
  15.8

  	
   

  	
  GOVERNING LAW

  	
   

  	
  60

  
	
  15.9

  	
   

  	
  Confidentiality

  	
   

  	
  60

  
	
  15.10

  	
   

  	
  Severability

  	
   

  	
  61

  
	
  15.11

  	
   

  	
  Nature of Remedies

  	
   

  	
  61

  
	
  15.12

  	
   

  	
  Entire Agreement

  	
   

  	
  61

  
	
  15.13

  	
   

  	
  Counterparts

  	
   

  	
  61

  
	
  15.14

  	
   

  	
  Successors and Assigns

  	
   

  	
  61

  
	
  15.15

  	
   

  	
  Captions

  	
   

  	
  62

  
	
  15.16

  	
   

  	
  Customer Identification - USA Patriot Act Notice

  	
   

  	
  62

  
	
  15.17

  	
   

  	
  INDEMNIFICATION BY THE COMPANY

  	
   

  	
  62

  
	
  15.18

  	
   

  	
  Nonliability of Lenders

  	
   

  	
  63

  
	
  15.19

  	
   

  	
  FORUM SELECTION AND CONSENT TO JURISDICTION

  	
   

  	
  63

  
	
  15.20

  	
   

  	
  WAIVER OF JURY TRIAL

  	
   

  	
  64

  
	
  15.21

  	
   

  	
  Judgment Currency

  	
   

  	
  64

  
	
  15.22

  	
   

  	
  Amendment and Restatement

  	
   

  	
  64

  

 

 iv

 

	
  ANNEXES

  
	
   

  
	
  ANNEX A

  	
  Lenders and Pro Rata Shares

  
	
  ANNEX B

  	
  Addresses for Notices

  
	
   

  	
   

  
	
  SCHEDULES

  
	
   

  
	
  SCHEDULE 2.1

  	
  Existing Letters of Credit

  
	
  SCHEDULE 9.6

  	
  Litigation and Contingent Liabilities

  
	
  SCHEDULE 9.8

  	
  Subsidiaries

  
	
  SCHEDULE 9.15

  	
  Insurance

  
	
  SCHEDULE 9.19

  	
  Labor Matters

  
	
  SCHEDULE 11.1

  	
  Existing Debt

  
	
  SCHEDULE 11.2

  	
  Existing Liens

  
	
  SCHEDULE 11.6

  	
  Existing Affiliate Transactions

  
	
  SCHEDULE 11.10

  	
  Investments

  
	
   

  	
   

  
	
  EXHIBITS

  
	
   

  
	
  EXHIBIT A

  	
  Form of Note (Section 3.1)

  
	
  EXHIBIT B

  	
  Form of Compliance Certificate (Section 10.1.3)

  
	
  EXHIBIT C

  	
  Form of Assignment Agreement (Section 15.6.1)

  
	
  EXHIBIT D

  	
  Form of Notice of Borrowing (Section 2.2.2)

  
	
  EXHIBIT E

  	
  Form of Notice of Conversion/Continuation (Section
  2.2.3)

  

 

 

SECOND
AMENDED AND RESTATED CREDIT AGREEMENT

THIS SECOND AMENDED AND RESTATED CREDIT AGREEMENT
dated as of  December 15, 2006 (this “Agreement”)
is entered into among LECG, LLC (the “Company”),
the financial institutions that are or may from time to time become parties
hereto (together with their respective successors and assigns, the “Lenders”),
LASALLE BANK NATIONAL ASSOCIATION (in its individual capacity, “LaSalle”),
as administrative agent for the Lenders, and BANK OF AMERICA, N.A., as
syndication agent for the Lenders.

RECITALS

A.                                   The Company,
U.S. Bank National Association, as a bank and as administrative agent (in such
capacity, the “Existing Administrative Agent”), and LaSalle, as a bank and as
documentation agent, are parties to an Amended and Restated Credit Agreement
dated as of March 31, 2003, as amended by that certain First Amendment to
Amended and Restated Credit Agreement dated August 18, 2003, that certain
Second Amendment to Amended and Restated Credit Agreement dated November 12,
2003, that certain Third Amendment to Amended and Restated Credit Agreement
dated April 15, 2004, that certain Fourth Amendment to Amended and Restated
Credit Agreement dated August 12, 2004, with an effective date of July 30, 2004
and that certain Fifth Amendment to Amended and Restated Credit Agreement dated
July 28, 2005, the “Existing Credit Agreement”).

B.                                     Pursuant to
that certain Assignment and Assumption Agreement dated concurrently herewith
(the “Assignment Agreement”) among the Administrative Agent, the Lenders,
the Existing Administrative Agent and U.S. Bank, among other things, (a) the
Existing Administrative Agent resigned as the “Administrative Agent” under the
Existing Credit Agreement pursuant to Section 14.9 of the Existing Credit
Agreement and (b) the Banks appointed LaSalle as the successor “Administrative
Agent” under the Existing Credit Agreement.

C.                                     The parties
wish to amend and restate the Existing Credit Agreement in its entirety
pursuant to the terms and conditions of this Agreement.

In consideration of the mutual agreements herein
contained, the parties hereto agree that the existing Credit Agreement is
amended and restated in its entirety as follows:

SECTION 1                                   DEFINITIONS.

1.1                                 Definitions.  When used herein the following terms shall
have the following meanings:

Acquired Debt means mortgage Debt or Debt with respect to Capital
Leases of a Person existing at the time such Person became a Subsidiary or
assumed by the Company or a Subsidiary of the Company pursuant to an
Acquisition permitted hereunder (and not created or incurred in connection with
or in anticipation of such Acquisition) which is otherwise permitted by the
terms of this Agreement.

Acquisition means any transaction or series of related
transactions for the purpose of or resulting, directly or indirectly, in (a)
the acquisition of all or substantially all of the assets of a Person, or of
all or substantially all of any business or division of a Person, (b) the
acquisition of in excess of 50% of the

 

Capital Securities of any
Person, or otherwise causing any Person to become a Subsidiary, or (c) a merger
or consolidation or any other combination with another Person (other than a
Person that is already a Subsidiary).

Administrative Agent means LaSalle in its capacity as administrative agent
for the Lenders hereunder and any successor thereto in such capacity.

Affected Loan - see Section 8.3.

Affiliate of any Person means (a) any other Person which,
directly or indirectly, controls or is controlled by or is under common control
with such Person, (b) any officer or director of such Person and (c) with
respect to any Lender, any entity administered or managed by such Lender or an
Affiliate or investment advisor thereof and which is engaged in making,
purchasing, holding or otherwise investing in commercial loans.  A Person shall be deemed to be “controlled by”
any other Person if such Person possesses, directly or indirectly, power to
vote 5% or more of the securities (on a fully diluted basis) having ordinary
voting power for the election of directors or managers or power to direct or
cause the direction of the management and policies of such Person whether by
contract or otherwise.  Unless expressly
stated otherwise herein, neither the Administrative Agent nor any Lender shall
be deemed an Affiliate of any Loan Party.

Agent Fee Letter means the fee letter dated as of November 3, 2006
among the Company, Administrative Agent, Bank of America, N.A., and Banc of
America Securities, LLC.

Agreed Currency means, subject to Section 1.3 and Section
1.4, (a) Dollars, (b) Euro, (c) Pounds Sterling and (d) any other Eligible
Currency approved in accordance with Section 1.5.

Agreement - see the Preamble.

Applicable Margin
means, for any day, the rate per annum set forth below opposite the level (the “Level”)
then in effect, it being understood that the Applicable Margin for (i)
Eurocurrency Rate Loans shall be the percentage set forth under the column “Eurocurrency
Margin”, (ii)  the Non-Use Fee Rate shall be the percentage set forth
under the column “Non-Use Fee Rate” and (iii) the L/C Fee shall be the
percentage set forth under the column “L/C Fee Rate”:

	
  Level

  	
   

  	
  Total Debt

  to EBITDA Ratio

  	
   

  	
  Eurocurrency

  Rate

  Margin

  	
   

  	
  Non-Use

  Fee Rate

  	
   

  	
  L/C Fee

  Rate

  	
   

  
	
  I

  	
   

  	
  Less
  than or equal to 3.0:1

  	
   

  	
  1.25

  	
  %

  	
  0.20

  	
  %

  	
  1.25

  	
  %

  
	
  II

  	
   

  	
  Less
  than or equal to 2.5:1 but greater than 2.0:1

  	
   

  	
  1.00

  	
  %

  	
  0.20

  	
  %

  	
  1.00

  	
  %

  
	
  III

  	
   

  	
  Less
  than or equal to 2.0:1.0 but greater than 1.5:1

  	
   

  	
  0.875

  	
  %

  	
  0.175

  	
  %

  	
  0.875

  	
  %

  
	
  IV

  	
   

  	
  Less
  than or equal to 1.5:1 but greater than 1.0:1

  	
   

  	
  0.75

  	
  %

  	
  0.15

  	
  %

  	
  0.75

  	
  %

  
	
  V

  	
   

  	
  Less
  than or equal to 1.0:1 but greater than 0.5:1

  	
   

  	
  0.625

  	
  %

  	
  0.125

  	
  %

  	
  0.625

  	
  %

  
	
  VI

  	
   

  	
  Less than or equal to
  0.5:1

  	
   

  	
  0.50

  	
  %

  	
  0.10

  	
  %

  	
  0.50

  	
  %

  

 

 2
 

 

The Eurocurrency Rate
Margin, the Non-Use Fee Rate and the L/C Fee Rate shall be adjusted, to the
extent applicable, on the fifth (5th) Business Day after the Company provides
or is required to provide the annual and quarterly financial statements and
other information pursuant to Sections 10.1.1 or 10.1.2, as
applicable, and the related Compliance Certificate, pursuant to Section
10.1.3.  Notwithstanding anything
contained in this paragraph to the contrary, (a) if the Company fails to
deliver the financial statements and Compliance Certificate in accordance with
the provisions of Sections 10.1.1, 10.1.2 and 10.1.3, the
Eurocurrency Rate Margin, the Non-Use Fee Rate and the L/C Fee Rate shall be
based upon Level I above beginning on the date such financial statements and
Compliance Certificate were required to be delivered until the fifth (5th)
Business Day after such financial statements and Compliance Certificate are
actually delivered, whereupon the Applicable Margin shall be determined by the
then current Level, (b) no reduction to any Applicable Margin shall become
effective at any time when an Event of Default or Unmatured Event of Default
has occurred and is continuing, and (c) the initial Applicable Margin on the
Closing Date shall be based on Level VI until the date on which the Applicable
Margin is required to be adjusted as set forth above.

Asset Disposition means the sale, lease, assignment or other transfer
for value (each, a “Disposition”) by any Loan Party to any Person (other
than a Loan Party) of any asset or right of such Loan Party (including the sale
of Capital Securities of any Subsidiary).

Assignee - see Section 15.6.1.

Assignment Agreement - see Section
15.6.1.

Attorney Costs means, with respect to any Person, all reasonable
fees and charges of any counsel to such Person, the reasonable allocable cost
of internal legal services of such Person, all reasonable disbursements of such
internal counsel and all court costs and similar legal expenses.

Bank Product Agreements means those certain cash management service
agreements entered into from time to time between any Loan Party and a Lender
or its Affiliates in connection with any of the Bank Products.

Bank Product Obligations means all obligations, liabilities,
contingent reimbursement obligations, fees, and expenses owing by the Loan
Parties to any Lender or its Affiliates pursuant to or evidenced by the Bank
Product Agreements and irrespective of whether for the payment of money,
whether direct or indirect, absolute or contingent, due or to become due, now
existing or hereafter arising, and including all such amounts that a Loan Party
is obligated to reimburse to the Administrative Agent or any Lender as a result
of the Administrative Agent or such Lender purchasing participations or
executing indemnities or reimbursement obligations with respect to the Bank
Products provided to the Loan Parties pursuant to the Bank Product Agreements.

Bank Products means any service or facility extended to any Loan
Party by any Lender or its Affiliates including:  (a) credit cards, (b) credit card processing
services, (c) debit cards, (d) purchase cards, (e) ACH transactions, (f) cash
management, including controlled disbursement, accounts or services, and (g)
Hedging Agreements.

Base Rate means at any time the greater of (a) the Federal
Funds Rate plus 0.5% and (b) the Prime Rate.

 3
 

 

Base Rate Loan means any Loan denominated in Dollars which bears
interest at or by reference to the Base Rate.

BSA - see Section 10.4.

Business Day means any day on which LaSalle is open for commercial
banking business in Chicago, Illinois; provided,

(a)                                  if such day
relates to any interest rate settings as to a Eurocurrency Rate Loan
denominated in Dollars, any fundings, disbursements, settlements and payments
in Dollars in respect of any such Eurocurrency Rate Loan, or any other dealings
in Dollars to be carried out pursuant to this Agreement in respect of any such
Eurocurrency Rate Loan, Business Day means any such day on which dealings in
deposits in Dollars are conducted by and between banks in the London interbank
eurodollar market;

(b)                                 if such day
relates to any interest rate settings as to a Eurocurrency Rate Loan
denominated in Euro, any fundings, disbursements, settlements and payments in
Euro in respect of any such Eurocurrency Rate Loan, or any other dealings in
Euro to be carried out pursuant to this Agreement in respect of any such Eurocurrency
Rate Loan, Business Day means any such day which is a TARGET Day;

(c)                                  if such day
relates to any interest rate settings as to a Eurocurrency Rate Loan
denominated in a currency other than Dollars or Euro, Business Day means any
such day on which dealings in deposits in the relevant currency are conducted
by and between banks in the London or other applicable offshore interbank
market for such currency; and

(d)                                 if such day
relates to any fundings, disbursements, settlements and payments in a currency
other than Dollars or Euro in respect of a Eurocurrency Rate Loan denominated
in a currency other than Dollars or Euro, or any other dealings in any currency
other than Dollars or Euro to be carried out pursuant to this Agreement in
respect of any such Eurocurrency Rate Loan (other than any interest rate
settings), Business Day means any such day on which banks are open for foreign
exchange business in the principal financial center of the country of such
currency.

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

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

Capital Securities means, with respect to any Person, all shares,
interests, participations or other equivalents (however designated, whether
voting or non-voting) of such Person’s capital, whether now outstanding or
issued or acquired after the Closing Date, including common shares, preferred
shares, membership interests in a limited liability company, limited or general
partnership interests in a

 4
 

 

partnership, interests in
a Trust, interests in other unincorporated organizations or any other
equivalent of such ownership interest.

Cash Collateralize means to deliver cash collateral to the
Administrative Agent, to be held as cash collateral for outstanding Letters of
Credit, pursuant to documentation satisfactory to the Administrative
Agent.  Derivatives of such term have
corresponding meanings.

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

Change of Control means the occurrence of any of the following events:
(a) any Person or group of Persons (within the meaning of Section 13 or 14 of
the Securities Exchange Act of 1934) shall acquire beneficial ownership (within
the meaning of Rule 13d-3 promulgated under such Act) of more than 30% of the
outstanding securities (on a fully diluted basis and taking into account any
securities or contract rights exercisable, exchangeable or convertible into
equity securities) of Parent having voting rights in the election of directors
under normal circumstances; (b) a majority of the members of the Board of
Directors of Parent shall cease to be Continuing Members; or (c) Parent shall
cease to own and control 100% of the outstanding Capital Securities of the
Company.  For purposes of the foregoing, “Continuing
Member” means a member of the Board of Directors of Parent who either (i) was a
member of Parent’s Board of Directors on the day before the Closing Date and
has been such continuously thereafter or (ii) became a member of such Board of
Directors after the day before the Closing Date and whose election or
nomination for election was approved by a vote of the majority of the
Continuing Members then members of Parent’s Board of Directors or of the
shareholders of Parent in an uncontested Parent-initiated election.

Closing Date - see Section 12.1.

Code means the Internal Revenue Code
of 1986.

Commitment means, as to any Lender, such Lender’s commitment to
make Loans, and to issue or participate in Letters of Credit, under this
Agreement.  The initial amount of each
Lender’s commitment to make Loans is set forth on Annex A.

Company - see the Preamble.

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

 5
 

 

Computation Date means (a) the
Closing Date and (b) so long as any outstanding Loan or Letter of Credit is
denominated in a Foreign Currency, (i) the last Business Day of each calendar
quarter, (ii) the date of any proposed Loan or issuance of a Letter of Credit
if Administrative Agent shall determine or Required Lenders shall require,
(iii) the date of any reduction or reallocation of Commitments pursuant to
Section 6.1.1, and (iv) such additional dates as Administrative Agent shall
determine or Required Lenders shall require.

Computation Period means each period of four consecutive Fiscal Quarters
ending on the last day of a Fiscal Quarter.

Consolidated Net Income means, with respect to the Company and its
Subsidiaries for any period, the net income (or loss) of the Company and its
Subsidiaries for such period, excluding any gains from Asset Dispositions,
any extraordinary gains and any gains from discontinued operations.

Contingent Liability means any liability or obligation identified by the
Company or the Parent in their consolidated financial statements as a
contingent liability under GAAP.

Controlled Group means all members of a controlled group of
corporations, all members of a controlled group of trades or businesses
(whether or not incorporated) under common control and all members of an
affiliated service group which, together with the Company or any of its
Subsidiaries, are treated as a single employer under Section 414 of the Code or
Section 4001 of ERISA.

Debt of any Person means, without duplication, (a) all
indebtedness of such Person for borrowed money, whether or not evidenced by
bonds, debentures, notes or similar instruments, (b) all obligations of such
Person as lessee under Capital Leases which have been or should be recorded as
liabilities on a balance sheet of such Person in accordance with GAAP, (c) all
obligations of such Person to pay the deferred purchase price of property or
services (excluding trade accounts payable in the ordinary course of business),
(d) all indebtedness secured by a Lien on the property of such Person, whether
or not such indebtedness shall have been assumed by such Person; provided
that if such Person has not assumed or otherwise become liable for such
indebtedness, such indebtedness shall be measured at the lesser of (i) the fair
market value of such property securing such indebtedness at the time of determination,
or (ii) the outstanding amount of such indebtedness at the time of
determination, (e) all obligations, contingent or otherwise, with respect to
the face amount of all letters of credit (whether or not drawn), bankers’
acceptances and similar obligations issued for the account of such Person
(including the Letters of Credit), (f) all Hedging Obligations of such Person,
(g) all Suretyship Liabilities of such Person, (h) all Debt of any partnership
of which such Person is a general partner and (i) any Capital Securities or
other equity instrument, whether or not mandatorily redeemable, that under GAAP
is characterized as debt, whether pursuant to financial accounting standards
board issuance No. 150 or otherwise.

Designated Currency means, (a) for
Eurocurrency Rate Loans and Letters of Credit, the Agreed Currency which is
designated for such Eurocurrency Rate Loans and Letters of Credit, (b) for Base
Rate Loans, Dollars, and (c) for Swing Line Loans, Dollars.

Designated Proceeds - see Section
6.2.2(a).

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

Dollar Equivalent means, at any
time, (a) with respect to any amount denominated in Dollars, such amount, and
(b) with respect to any amount denominated in any Foreign Currency, the equivalent

 6
 

 

amount
thereof in Dollars as determined by Administrative Agent or Issuing Lender, as
the case may be, at such time on the basis of the Exchange Rate (determined in
respect of the most recent Computation Date) for the purchase of Dollars with such
Foreign Currency.

EBIT means, for any
period, Consolidated Net Income for such period plus, to the extent
deducted in determining such Consolidated Net Income, (i) Interest Expense,
(ii) income tax expense, (iii) amortization of Signing and Performance Bonus
expense, and (iv) non-cash equity compensation expense.

EBITDA
means, for any period, Consolidated Net Income for such period plus, to
the extent deducted in determining such Consolidated Net Income, (i) Interest
Expense, (ii) income tax expense, (iii) depreciation and amortization for such
period, including, but not limited to,
amortization of Signing and Performance Bonus expense, (iv) non-cash equity
compensation expense, (v) other non-cash charges (excluding any such non-cash
charge to the extent that it represents an accrual or reserve for potential
cash items in the future), (vi) extraordinary non-cash losses (as determined in
accordance with GAAP) incurred other than in the ordinary course of business,
(vii) goodwill impairment expense per GAAP and (viii) expensed acquisition
costs of up to $500,000 minus, to the extent included in Consolidated Net
Income, extraordinary gains (as determined in accordance with GAAP) realized
other than in the ordinary course of business, for such period. In addition,
“EBITDA” shall also (x) include EBITDA for each Subsidiary, business or
division acquired in an Acquisition occurring during such period for which
financial statements have been received as required pursuant hereto as if such
Acquisition had occurred as of the first day of such period, and (y) exclude
EBITDA attributable to each Asset Disposition of a Subsidiary, business or
division occurring in the relevant period as if such Asset Disposition had
occurred as of the first day of such period.

Eligible Currency means any
Foreign Currency provided that: (a) quotes for loans in such currency are
available in the London interbank deposit market, (b) such currency is freely
transferable and convertible into Dollars in the London foreign exchange
market, (c) no approval of a government authority in the country of issue of
such currency is required to permit use of such currency by any applicable
Lender or Issuing Lender for making loans or issuing letters of credit, or
honoring drafts presented under letters of credit in such currency, and (d)
there is no restriction or prohibition under any applicable legal requirements
against the use of such currency for such purposes.

EMU
Legislation means the legislative measures of the European
Council for the introduction of, changeover to or operation of a single or
unified European currency.

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

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

ERISA means the Employee Retirement
Income Security Act of 1974.

 7
 

 

Event of Default means any of the events described in Section 13.1.

Euro and EUR mean the lawful currency of
the Participating Member States introduced in accordance with the EMU
Legislation.

Eurocurrency Rate Loan means any Loan which bears interest at a rate
determined by reference to the Eurocurrency Rate.

Eurocurrency Rate Margin - see the
definition of Applicable Margin.

Eurocurrency Rate Office means with respect to any Lender the
office or offices of such Lender which shall be making or maintaining the
Eurocurrency Rate Loans of such Lender hereunder.  A Eurocurrency Rate Office of any Lender may
be, at the option of such Lender, either a domestic or foreign office.

Eurocurrency Rate means a rate of interest equal to (a)
the per annum rate of interest at which deposits in the applicable Designated
Currency in an amount comparable to the amount of the relevant Eurocurrency
Rate Loan and for a period equal to the relevant Interest Period are offered in
the London Interbank Eurocurrency market at 11:00 A.M. (London time) two (2)
Business Days prior to the commencement of such Interest Period (or three (3)
Business Days prior to the commencement of such Interest Period if banks in
London, England were not open and dealing in the applicable Designated Currency
on such second preceding Business Day), as displayed in the Bloomberg Financial Markets system (or other authoritative
source selected by the Administrative Agent in its sole discretion) or, if the Bloomberg Financial Markets system or another authoritative
source is not available, as the Eurocurrency Rate is otherwise determined by
the Administrative Agent in its sole and absolute discretion, divided by (b) a
number determined by subtracting from 1.00 the then stated maximum reserve
percentage for determining reserves to be maintained by member banks of the
Federal Reserve System for Eurocurrency funding or liabilities as defined in
Regulation D (or any successor category of liabilities under Regulation D),
such rate to remain fixed for such Interest Period.  The Administrative Agent’s determination of
the Eurocurrency Rate shall be conclusive, absent manifest error.

Exchange
Rate means, on any Business Day, with respect to any calculation of the
Dollar Equivalent with respect to any Foreign Currency on such date or any
calculation of the Foreign Currency Equivalent on such date, the rate at which
such Foreign Currency may be exchanged into Dollars or Dollars may be exchanged
into such Foreign Currency, as set forth on such date on the relevant FWDS
Series Reuters currency page at or about 11:00 a.m. (New York time) on such
date.  In the event that such rate does
not appear on any such Reuters page, the “Exchange Rate” with respect to such
Foreign Currency shall be determined by reference to such other publicly
available service for displaying exchange rates as may be agreed upon by
Administrative Agent and Company or, in the absence of such agreement, such “Exchange
Rate” shall instead be Administrative Agent’s spot rate of exchange in the
interbank market where its currency exchange operations in respect of such
Foreign Currency are then being conducted, at or about 10:00 A.M. local time at
such date for the purchase of such Foreign Currency with Dollars or the
purchase of Dollars with such Foreign Currency, as the case may be, for
delivery two Business Days later; provided that if at the time of any such
determination no such spot rate can reasonably be quoted, Administrative Agent
may use any reasonable method (including obtaining quotes from three or more
market makers for such Foreign Currency) as it deems appropriate to determine
such rate and such determination shall be presumed correct absent manifest
error.

 8
 

 

Excluded Taxes means taxes based upon, or measured by, the Lender’s
or Administrative Agent’s (or a branch of the Lender’s or Administrative Agent’s)
overall net income, overall net receipts, or overall net profits (including
franchise taxes imposed in lieu of such taxes), but only to the extent such
taxes are imposed by a taxing authority (a) in a jurisdiction in which such
Lender or Administrative Agent is organized, (b) in a jurisdiction which the
Lender’s or Administrative Agent’s principal office is located, or (c) in a
jurisdiction in which such Lender’s or Administrative Agent’s lending office
(or branch) in respect of which payments under this Agreement are made is
located.

Federal Funds Rate means, for any
day, a fluctuating interest rate equal for each day during such period to the
weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers, as
published for such day (or, if such day is not a Business Day, for the next
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 Business Day, the average of
the quotations for such day on such transactions received by the Administrative
Agent from three Federal funds brokers of recognized standing selected by the
Administrative Agent.  The Administrative
Agent’s determination of such rate shall be binding and conclusive absent
manifest error.

Fiscal Quarter means a fiscal
quarter of a Fiscal Year.

Fiscal Year means the fiscal year of the Company and its
Subsidiaries, which period shall be the 12-month period ending on December 31
of each year.  References to a Fiscal
Year with a number corresponding to any calendar year (e.g., “Fiscal Year
2006”) refer to the Fiscal Year ending on December 31 of
such calendar year.

Fixed Charge Coverage Ratio means, for any Computation Period, the
ratio of (a) the sum of (i) EBIT for such Computation Period and (ii) Rentals
for such Computation Period to (b) the sum of (without duplication) (i) cash
Interest Expense for such Computation Period and (ii) Rentals for such
Computation Period.

Foreign Currency means a
currency other than Dollars.

Foreign
Currency Equivalent means, at any time, with respect to any amount
denominated in Dollars, the equivalent amount thereof in the applicable Foreign
Currency as determined by Administrative Agent or the Issuing Lender, as the
case may be, at such time on the basis of the Exchange Rate (determined in
respect of the most recent Computation Date) for the purchase of such Foreign
Currency with Dollars.

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

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

Group - see Section 2.2.1.

Guarantors means, collectively,
Parent and the Domestic Subsidiaries.

 9
 

 

Guaranty and Pledge Agreement means the Guaranty and Pledge Agreement
dated as of the date hereof executed and delivered by the Company and the
Guarantors, together with any joinders thereto and any other guaranty executed
by a Loan Party, in each case in form and substance satisfactory to the
Administrative Agent.

Hazardous Substances means any “hazardous
waste”, as defined in 42 U.S.C. §6903(5), any “hazardous substance”, as defined
in 42 U.S.C. §9601(14), any “pollutant” or “contaminant”, as defined in 42
U.S.C. §9601(33), or any toxic substance, oil or hazardous material or other
chemical or substance regulated by any Environmental Law.

Hedging Agreement means any interest rate, currency or commodity swap
agreement, cap agreement or collar agreement, and any other agreement or
arrangement designed to protect a Person against fluctuations in interest
rates, currency exchange rates or commodity prices.

Hedging Obligation means, with respect to any Person, any liability of
such Person under any Hedging Agreement.

Indemnified Liabilities - see Section 15.16.

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

Interest Period means, as to any Eurocurrency Rate Loan, the period
commencing on the date such Loan is borrowed or continued as, or converted
into, a Eurocurrency Rate Loan and ending on the date one, two, three or six
months thereafter as selected by the Company pursuant to Section 2.2.2
or 2.2.3, as the case may be; provided that:

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

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

(c)                                  the Company may not select any Interest Period for a
Revolving  Loan which would extend beyond
the scheduled Termination Date.

Investment means, with respect to any Person, any investment in
another Person, whether by acquisition of any debt or Capital Security, by
making any loan, by becoming obligated with respect to a Suretyship Liability
in respect of obligations of such other Person (other than travel and similar
advances to employees in the ordinary course of business) or by making an
Acquisition.

Issuing Lender means (i) U.S. Bank National Association, in its
capacity as the issuer of the Letters of Credit listed on Schedule 2.1
and indicated thereon as having been issued by it, and (ii) LaSalle, in its
capacity as the issuer of all other Letters of Credit hereunder, or any
Affiliate of LaSalle that may from time to time issue such Letters of Credit,
and their successors and assigns in such capacity.

 10

 

LaSalle - see the Preamble.

L/C
Application means, with respect to any request for the
issuance of a Letter of Credit, a letter of credit application in the form
being used by the Issuing Lender at the time of such request for the type of
letter of credit requested.

L/C Fee Rate - see the definition of
Applicable Margin.

Lender
- see the Preamble.  References to
the “Lenders” shall include the Issuing Lender; for purposes of clarification
only, to the extent that LaSalle (or any successor Issuing Lender) may have any
rights or obligations in addition to those of the other Lenders due to its
status as Issuing Lender, its status as such will be specifically
referenced.  In addition to the
foregoing, for the purpose of identifying the Persons entitled to benefit from
the Guaranty and Pledge Agreement under, and in accordance with the provisions
of, this Agreement and the Guaranty and Pledge Agreement, the term “Lender”
shall include Affiliates of a Lender providing a Bank Product.

Lender Party - see Section 15.17.

Letter of Credit - see Section
2.1.2.

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

Loan
Documents means this Agreement, the Notes, the Letters of
Credit, the Master Letter of Credit Agreement, the L/C Applications, the Agent
Fee Letter, the Guaranty and Pledge Agreement, and all documents, instruments
and agreements delivered in connection with the foregoing.

Loan
Party means each of Parent, the Company and each Subsidiary.

Loan
or Loans means, as the context may require, Revolving Loans
and/or Swing Line Loans.

Margin
Stock means any “margin stock” as defined in Regulation U.

Master
Letter of Credit Agreement means, at any time, with respect
to the issuance of Letters of Credit, a master letter of credit agreement or
reimbursement agreement in the form, if any, being used by the Issuing Lender
at such time.

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

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

 11
 

 

Navigant
Subordination Agreement means the Subordination Agreement
dated as of September 29, 2000 among LECG Holding Company, LLC, the Company,
Navigant Consulting, Inc., and First Union National Bank, as administrative
agent, which references deferred purchase price obligations, as amended,
restated, supplemented or modified from time to time.

Non-U.S.
Participant - see Section 7.6(d).

Non-Use
Fee Rate - see the definition of Applicable Margin.

Note
means a promissory note substantially in the form of Exhibit A.

Notice
of Borrowing - see Section 2.2.2.

Notice
of Conversion/Continuation - see Section 2.2.3.

Obligations
means, collectively, all obligations (monetary (including post-petition
interest, allowed or not) or otherwise) of any Loan Party under this Agreement
and any other Loan Document including Attorney Costs and any reimbursement
obligations of each Loan Party in respect of Letters of Credit and surety
bonds, all Hedging Obligations permitted hereunder which are owed to any Lender
or its Affiliate or Administrative
Agent, and all other Bank Product Obligations, all in each case howsoever
created, arising or evidenced, whether direct or indirect, absolute or
contingent, now or hereafter existing, or due or to become due.

OFAC
- see Section 10.4.

Operating
Lease means any lease of (or other agreement conveying the
right to use) any real or personal property by any Loan Party, as lessee, other
than any Capital Lease.

Ordinary
Course of Business means,
with respect to any transaction involving a Loan Party, the ordinary course of
such Person’s business, as conducted by any such Person in accordance with past
practice.

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

Parent
means LECG Corporation, a Delaware corporation.

Participant
- see Section 15.6.2.

Participating
Member State means each state so described in any EMU
Legislation.

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

Permitted
Lien means a Lien expressly permitted hereunder pursuant to Section
11.2.

 12
 

 

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

Prime
Rate means, for any day, the rate of interest in effect for
such day as publicly announced from time to time by the Administrative Agent as
its prime rate (whether or not such rate is actually charged by the
Administrative Agent), which is not intended to be the Administrative Agent’s
lowest or most favorable rate of interest at any one time.  Any change in the Prime Rate announced by the
Administrative Agent shall take effect at the opening of business on the day
specified in the public announcement of such change; provided that the
Administrative Agent shall not be obligated to give notice of any change in the
Prime Rate.

Pro
Rata Share means:

(a)           with respect to a
Lender’s obligation to make Revolving Loans, participate in Letters of Credit,
reimburse the Issuing Lender, and receive payments of principal, interest,
fees, costs, and expenses with respect thereto, (x) prior to the Revolving
Commitment being terminated or reduced to zero, the percentage obtained by
dividing (i) such Lender’s Revolving Commitment, by (ii) the aggregate
Revolving Commitment of all Lenders and (y) from and after the time the
Revolving Commitment has been terminated or reduced to zero, the percentage
obtained by dividing (i) the aggregate unpaid principal amount of such Lender’s
Revolving Outstandings (after settlement and repayment of all Swing Line Loans
by the Lenders) by (ii) the aggregate unpaid principal amount of all Revolving
Outstandings; and

(b)           with respect to all
other matters as to a particular Lender, including the consent of the Required
Lenders, the percentage obtained by dividing (i) such Lender’s Revolving
Commitment, by (ii) the aggregate amount of Revolving Commitment of all
Lenders; provided that in the event the Commitments have been terminated
or reduced to zero, Pro Rata Share shall be the percentage obtained by dividing
(A) the principal amount of such Lender’s Revolving Outstandings (after
settlement and repayment of all Swing Line Loans by the Lenders) by
(B) the principal amount of all outstanding Revolving Outstandings.

Refunded
Swing Line Loan - see Section 2.2.4(c).

Regulation
D means Regulation D of the FRB.

Regulation
U means Regulation U of the FRB.

Rentals
means, with respect to any Person for any fiscal period, the aggregate rental
obligations of such Person determined in accordance with GAAP which are payable
in respect of such period under leases of real or personal property (net of
income from subleases thereof, but 
including taxes, insurance, maintenance and similar expenses that the
lessee is obligated to pay under the terms of such leases), whether or not such
obligations are reflected as liabilities or commitments on a consolidated
balance sheet of such Person or in the notes thereto, excluding, however, any
such obligations under Capital Leases.

Replacement
Lender - see Section 8.7(b).

 13
 

 

Reportable
Event means a reportable event as defined in Section 4043 of
ERISA and the regulations issued thereunder as to which the PBGC has not waived
the notification requirement  of Section
4043(a), or the failure of a Pension Plan to meet the minimum funding standards
of Section 412 of the Code (without regard to whether the Pension Plan is a
plan described in Section 4021(a)(2) of ERISA) or under Section 302 of ERISA.

Required
Lenders means, at any time, Lenders whose Pro Rata Shares
exceed 50% as determined pursuant to clause (d) of the definition of “Pro Rata
Share”; provided, that if there are only two Lenders, then Required
Lenders shall mean both Lenders.

Revolving
Commitment means $100,000,000, as reduced or increased from
time to time pursuant to Section 6.1 or Section 6.4,
respectively.

Revolving
Loan - see Section 2.1.1.

Revolving
Outstandings means, at any time, the sum of (a) the aggregate
principal amount of all outstanding Revolving Loans, plus (b) the Stated Amount
of all Letters of Credit.

Same
Day Funds means (a) with respect to disbursements and
payments in Dollars, immediately available funds, and (b) with respect to
disbursements and payments in an Foreign Currency, same day or other funds as
may be determined by Administrative Agent or the Issuing Lender, as the case
may be, to be customary in the place of disbursement or payment for the
settlement of international banking transactions in the relevant Foreign
Currency.

SEC
means the Securities and Exchange Commission or any other governmental
authority succeeding to any of the principal functions thereof.

Senior
Officer means, with respect to any Loan Party, any of the
chief executive officer, the chief financial officer, the chief operating
officer or the secretary of such Loan Party.

Signing
and Performance Bonus means any payment to an expert or
professional employed by a Loan Party to provide direct services to such Loan
Party’s clients, which payment is capable of being amortized over a multi-year
period.

Stated
Amount means, with respect to any Letter of Credit at any
date of determination, (a) the maximum aggregate amount available for drawing
thereunder under any and all circumstances plus (b) the aggregate amount of all
unreimbursed payments and disbursements under such Letter of Credit.

Sterling
and £ mean the lawful currency of the United Kingdom.

Subordinated
Debt means any unsecured Debt of the Company or any of its
Subsidiaries incurred after the date hereof intended to be subordinated to the
Obligations which has subordination terms, covenants, pricing and other terms
which have been approved in writing by the Required Lenders.

Subordinated
Debt Documents means all documents and instruments relating
to the Subordinated Debt and all amendments and modifications thereof approved
by the Administrative Agent.

Subsidiary
means, with respect to any Person, a corporation, partnership, limited
liability company or other entity of which such Person owns, directly or
indirectly, such number of outstanding

 14
 

 

Capital Securities
as have more than 50% of the ordinary voting power for the election of
directors or other managers of such corporation, partnership, limited liability
company or other entity.  Unless the
context otherwise requires, each reference to Subsidiaries herein shall be a
reference to Subsidiaries of the Company.

Suretyship
Liability means, with respect to any Person, each obligation
and liability of such Person and all such obligations and liabilities of such
Person incurred pursuant to any agreement, undertaking or arrangement by which
such Person:  (a) guarantees, endorses or
otherwise becomes or is contingently liable upon (by direct or indirect
agreement, contingent or otherwise, to provide funds for payment, to supply
funds to, or otherwise to invest in, a debtor, or otherwise to assure a
creditor against loss) the indebtedness, dividend, obligation or other
liability of any other Person in any manner (other than by endorsement of
instruments in the course of collection), including any indebtedness, dividend
or other obligation which may be issued or incurred at some future time; (b)
guarantees the payment of dividends or other distributions upon the Capital
Securities of any other Person; (c) undertakes or agrees (whether contingently
or otherwise):  (i) to purchase,
repurchase, or otherwise acquire any indebtedness, obligation or liability of
any other Person or any property or assets constituting security therefor, (ii)
to advance or provide funds for the payment or discharge of any indebtedness,
obligation or liability of any other Person (whether in the form of loans,
advances, stock purchases, capital contributions or otherwise), or to maintain
solvency, assets, level of income, working capital or other financial condition
of any other Person, or (iii) to make payment to any other Person other than
for value received; (d) agrees to lease property or to purchase securities,
property or services from such other Person with the purpose or intent of
assuring the owner of such indebtedness or obligation of the ability of such
other Person to make payment of the indebtedness or obligation; (e) to
induce the issuance of, or in connection with the issuance of, any letter of
credit for the benefit of such other Person; or (f) undertakes or agrees
otherwise to assure a creditor against loss. 
The amount of any Suretyship Liability shall (subject to any limitation
set forth herein) be deemed to be the outstanding principal amount (or maximum
permitted principal amount, if larger) of the indebtedness, obligation or other
liability guaranteed or supported thereby.

Swing
Line Availability means the lesser of (a) the Swing Line
Commitment Amount and (b) Revolving Commitment (less Revolving Outstandings at
such time).

Swing
Line Commitment Amount means $10,000,000, as reduced from
time to time pursuant to Section 6.1, which commitment constitutes a
subfacility of the Revolving Commitment of the Swing Line Lender.

Swing
Line Lender means LaSalle.

Swing
Line Loan - see Section 2.2.4.

TARGET
Day means any day on which the Trans-European Automated Real-time
Gross Settlement Express Transfer (TARGET) payment system (or, if such payment
system ceases to be operative, such other payment system (if any) determined by
Administrative Agent to be a suitable replacement) is open for the settlement
of payments in Euro.

Taxes
means any and all present and future taxes, duties, levies, imposts,
deductions, assessments, charges or withholdings, and any and all liabilities
(including interest and penalties and other additions to taxes) with respect to
the foregoing, but excluding Excluded Taxes.

 15
 

 

Termination
Date means the earlier to occur of (a) December 15, 2011 or
(b) such other date on which the Commitments terminate pursuant to Section 6
or Section 13.

Termination
Event means, with respect to a Pension Plan that is subject
to Title IV of ERISA, (a) a Reportable Event, (b) the withdrawal of Company or
any other member of the Controlled Group from such Pension Plan during a plan
year in which Company or any other member of the Controlled Group was a
“substantial employer” as defined in Section 4001(a)(2) of ERISA or was deemed
such under Section 4068(f) of ERISA, (c) the termination of such Pension Plan,
the filing of a notice of intent to terminate the Pension Plan or the treatment
of an amendment of such Pension Plan as a termination under Section 4041 of
ERISA, (d) the institution by the PBGC of proceedings to terminate such Pension
Plan or (e) any event or condition that might constitute grounds under Section
4042 of ERISA for the termination of, or appointment of a trustee to
administer, such Pension Plan.

Total
Debt means all Debt of the Company and its Subsidiaries,
determined on a consolidated basis, excluding (a) contingent obligations in
respect of Suretyship Liabilities (except to the extent constituting Suretyship
Liabilities in respect of Debt (other than a Suretyship Liability) of a Person
other than any Loan Party), (b) Hedging Obligations, (c) Debt of the Company to Subsidiaries and Debt of
Subsidiaries to the Company or to other Subsidiaries and (d) contingent
obligations in respect of undrawn letters of credit.

Total
Net Leverage Ratio means, as of the last day of any Fiscal
Quarter, the ratio of (a) (i) Total Debt as of such day, less (ii) cash held by
Company and Subsidiaries as of such day in excess of $25,000,000, to (b) EBITDA
for the Computation Period ending on such day.

Total
Plan Liability means, at any time, the present value of all
vested and unvested accrued benefits under all Pension Plans, determined as of
the then most recent valuation date for each Pension Plan, using PBGC actuarial
assumptions for single employer plan terminations.

type
- see Section 2.2.1.

UCC
means the Uniform Commercial Code as in effect on the date hereof and
from time to time in the State of Illinois.

Unfunded
Liability means the amount (if any) by which the present
value of all vested and unvested accrued benefits under all Pension Plans
exceeds the fair market value of all assets allocable to those benefits, all
determined as of the then most recent valuation date for each Pension Plan,
using PBGC actuarial assumptions for single employer plan terminations.

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

Withholding
Certificate - see Section 7.6(d).

Wholly-Owned
Subsidiary means, as to any Person, a Subsidiary all of the
Capital Securities of which (except directors’ qualifying Capital Securities)
are at the time directly or indirectly owned by such Person and/or another
Wholly-Owned Subsidiary of such Person.

1.2           Other Interpretive Provisions. 
(a)  The meanings of defined terms
are equally applicable to the singular and plural forms of the defined terms.

 16
 

 

(b)           Section, Annex,
Schedule and Exhibit references are to this Agreement unless otherwise
specified.

(c)           The term “including” is not limiting and means “including without
limitation.”

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

(e)           Unless otherwise expressly provided herein, (i) references to
agreements (including this Agreement and the other Loan Documents) and other
contractual instruments shall be deemed to include all subsequent amendments,
restatements, supplements and other modifications thereto, but only to the
extent such amendments, restatements, supplements and other modifications are
not prohibited by the terms of any Loan Document, and (ii) references to
any statute or regulation shall be construed as including all statutory and
regulatory provisions amending, replacing, supplementing or interpreting such
statute or regulation.

(f)            This Agreement and the other Loan Documents
may use several different limitations, tests or measurements to regulate the
same or similar matters.  All such
limitations, tests and measurements are cumulative and each shall be performed
in accordance with its terms.

(g)           This Agreement and the other Loan Documents are the result of
negotiations among and have been reviewed by counsel to the Administrative
Agent, the Company, the Lenders and the other parties thereto and are the
products of all parties.  Accordingly,
they shall not be construed against the Administrative Agent or the Lenders
merely because of the Administrative Agent’s or Lenders’ involvement in their
preparation.

1.3           Exchange Rates; Currency Equivalents.

(A)          On each Computation Date, Administrative Agent shall determine the
Exchange Rate as of such Computation Date. The Exchange Rate so determined
shall become effective on the first Business Day after such Computation Date
and shall remain effective through the next succeeding Computation Date. Except
for purposes of financial statements delivered by Company hereunder or
calculating financial covenants hereunder or except as otherwise provided
herein, the applicable amount of any currency (other than Dollars) for purposes
of the Loan Documents shall be such Dollar Equivalent amount as so determined
by Administrative Agent or the Issuing Lender, as applicable.

(B)           Wherever in this Agreement in connection with a borrowing, conversion,
continuation or prepayment of a Eurocurrency Rate Loan or the issuance,
amendment or extension of a Letter of Credit denominated in a Foreign Currency,
an amount, such as a required minimum or multiple amount, is expressed in
Dollars, but such borrowing, Eurocurrency Rate Loan or Letter of Credit is
denominated in a Foreign Currency, such amount shall be the relevant Foreign
Currency Equivalent of such Dollar amount (rounded to the nearest 100,000 of
such Foreign Currency units, with 50,000 of such unit being rounded upward), as
determined by Administrative Agent or the Issuing Lender, as the case may be.

 17
 

 

1.4           Agreed Currencies.

(A)          The Company may from
time to time request that Eurocurrency Rate Loans be made or Letters of Credit
be issued in a currency other than those specifically listed in the definition
of “Agreed Currency;” provided that such requested currency is an Eligible
Currency. Any such request shall be subject to the approval of Administrative
Agent and each Lender.

(B)           Any such request shall
be made to Administrative Agent not later than 11:00 a.m. (Chicago time), ten
Business Days prior to the date of the desired borrowing or issuance (or such
other time or date as may be agreed by Administrative Agent, in its sole
discretion).  Administrative Agent shall
promptly notify each Lender thereof. Each Lender shall notify Administrative
Agent, not later than 11:00 a.m. (Chicago time), five Business Days after receipt
of such request whether it consents, in its sole discretion, to the making of
such Eurocurrency Rate Loan or the issuance of such Letter of Credit in such
requested currency. Any failure by a Lender to respond to such request within
the time period specified in the preceding sentence shall be deemed to be a
refusal by such Lender to permit Eurocurrency Rate Loans to be made or Letters
of Credit to be issued in such requested currency. If Administrative Agent and
all the Lenders consent to making Eurocurrency Rate Loans or issuing Letters of
Credit in such requested currency, Administrative Agent shall so notify Company
and such currency shall thereupon be deemed for all purposes to be an Agreed
Currency hereunder for purposes of any Eurocurrency Rate Loans or Letters of
Credit.  If Administrative Agent shall
fail to obtain consent to any request for an additional currency under this
Section 1.5, Administrative Agent shall promptly so notify Company.

(C)           If, after the
designation of any currency as an Agreed Currency (including any Foreign
Currency listed in clause (b) - (d) of the definition of “Agreed Currency”),
(i) currency control or other exchange regulations are imposed in the country
in which such currency is issued with the result that different types of such
currency are introduced, (ii) such currency, in the reasonable determination of
Administrative Agent, no longer qualifies as an “Eligible Currency” or (iii) in
the reasonable determination of Administrative Agent, a Dollar Equivalent of
such currency is not readily calculable, Administrative Agent shall promptly
notify the Lenders and Company, and such currency shall no longer be an Agreed
Currency until such time as Administrative Agent and the Lenders, as provided
herein, agree to reinstate such currency as an Agreed Currency.

1.5           Change of Currency.

(A)          Each obligation of
Company to make a payment denominated in the national currency unit of any
member state of the European Union that adopts the Euro as its lawful currency
after the date hereof shall be redenominated into Euro at the time of such
adoption (in accordance with the EMU Legislation). If, in relation to the
currency of any such member state, the basis of accrual of interest expressed
in this Agreement in respect of that currency shall be inconsistent with any
convention or practice in the London interbank market for the basis of accrual
of interest in respect of the Euro, such expressed basis shall be replaced by
such convention or practice with effect from the date on which such member
state adopts the Euro as its lawful currency; provided that if any borrowing in
the currency of such member state is outstanding immediately prior to such
date, such replacement shall take effect, with respect to such borrowing, at
the end of the then current Interest Period.

(B)           Each provision of this
Agreement shall be subject to such reasonable changes of construction as
Administrative Agent may from time to time specify to be appropriate to reflect
the adoption of the Euro by any member state of the European Union and any
relevant market conventions or practices relating to the Euro.

 18
 

 

(C)           Each provision of this
Agreement also shall be subject to such reasonable changes of construction as
Administrative Agent may from time to time specify to be appropriate to reflect
a change in currency of any other country other than the United States and any
relevant market conventions or practices relating to the change in currency.

SECTION 2           COMMITMENTS
OF THE LENDERS; BORROWING, CONVERSION AND LETTER OF CREDIT PROCEDURES.

2.1           Commitments.  On and subject to the terms and conditions of
this Agreement, each of the Lenders, severally and for itself alone, agrees to
make loans to, and to issue or participate in letters of credit for the account
of, the Company as follows:

2.1.1        Revolving Loan
Commitment.  Each Lender with a
Revolving Loan Commitment agrees to make loans on a revolving basis (“Revolving
Loans”) in the applicable Designated Currency requested by Company from
time to time until the Termination Date in such Lender’s Pro Rata Share of such
aggregate amounts as the Company may request from all Lenders; provided
that the Revolving Outstandings will not at any time exceed the Revolving
Commitment (less the amount of any Swing Line Loans outstanding at such time; provided,
that the aggregate Dollar Equivalent of all outstanding Loans denominated in a
Foreign Currency shall not exceed $10,000,000).

2.1.2        L/C Commitment.

(a)           Subject to Section
2.3.1, the Issuing Lender agrees to issue letters of credit denominated in
Agreed Currencies, in each case containing such terms and conditions as are
permitted by this Agreement and are reasonably satisfactory to the Issuing
Lender (including the letters of credit listed on Schedule 2.1, each, a
“Letter of Credit”), at the request of and for the account of the Company from
time to time before the scheduled Termination Date and, as more fully set forth
in Section 2.3.2, each Lender agrees to purchase a participation in
each such Letter of Credit; provided that (i) the Dollar Equivalent of the
aggregate Stated Amount of all Letters of Credit shall not at any time exceed
$25,000,000 and (ii) the Revolving Outstandings shall not at any time
exceed the Revolving Commitment (less the amount of any Swing Line Loans
outstanding at such time).  If on any
Computation Date the Administrative Agent determines that the Dollar Equivalent
of the aggregate Stated Amount of all Letters of Credit exceeds $25,000,000 due
to a change in applicable rates of exchange between Dollars and any applicable
currency, then (i) the Administrative Agent shall promptly notify
Company and (ii) Company shall promptly Cash Collateralize any outstanding
Letters of Credit by depositing the requisite amount with the Issuing Lender in
an amount sufficient to eliminate such excess.

(b)           Notwithstanding
anything to the contrary in this Agreement, (i) U.S. Bank National Association,
in its capacity as an Issuing Lender (in such capacity, “U.S. Bank”)
will not have any obligation to extend the expiration date of, or to replace or
make substitutions for, any of the Letters of Credit listed in Schedule 2.1
and noted thereon as having been issued by it (the “Existing Letters of
Credit”), (ii) in the case of any Existing Letter of Credit that is
automatically extendible unless a notice of non-renewal is given, U.S. Bank
will not have any obligation to not give such notice of non-renewal and may
give such notice of non-renewal at the times and otherwise in accordance with
the terms of such Existing Letter of Credit and (iii) Company will undertake
reasonable efforts to replace such Existing Letters of Credit with Letters of
Credit issued by the other Issuing Lender within 90 days after the date of this
Agreement and, upon such replacement, will return such Existing Letters of Credit
to U.S. Bank together with an acknowledgment signed by the beneficiary of such
Existing Letter of Credit stating that such beneficiary no longer has an
interest in such Existing Letter of Credit.

 19
 

 

2.2           Loan Procedures.

2.2.1        Various Types of Loans.  Each Revolving Loan shall be divided into
tranches which are, either a Base Rate Loan, which shall be denominated in
Dollars, or a Eurocurrency Rate Loan, which may be denominated in any Agreed
Currency (each a “type” of Loan), as the Company shall specify in the
related notice of borrowing or conversion pursuant to Section 2.2.2
or 2.2.3.  Eurocurrency Rate
Loans denominated in the same currency having the same Interest Period which
expire on the same day are sometimes called a “Group” or collectively “Groups”.  Base Rate Loans and Eurocurrency Rate Loans
may be outstanding at the same time, provided that not more than seven
different groups of Eurocurrency Rate Loans shall be outstanding at any one
time.  All borrowings, conversions and
repayments of Revolving Loans shall be effected so that each Lender will have a
ratable share (according to its Pro Rata Share) of all types and Groups of
Loans.

2.2.2        Borrowing Procedures.  The Company shall give written notice (each
such written notice, a “Notice of Borrowing”) substantially in the form
of Exhibit D to the Administrative Agent of each proposed borrowing not
later than (a) in the case of a Base Rate borrowing, 1:00 P.M., Chicago
time, on the proposed date of such borrowing, (b) in the case of a
Eurocurrency Rate borrowing denominated in Dollars, 1:00 P.M., Chicago time, at
least three Business Days prior to the proposed date of such borrowing, and (c)
in the case of a Eurocurrency Rate Borrowing denominated in a Foreign Currency,
1:00 P.M., Chicago Time, at least four Business Days prior to the proposed date
of such borrowing.  Each such notice
shall be effective upon receipt by the Administrative Agent, shall be
irrevocable, and shall specify the date, amount and type of borrowing and, in
the case of a Eurocurrency Rate borrowing, the initial Interest Period therefor
and the currency thereof.  Promptly upon
receipt of such notice, the Administrative Agent shall advise each Lender
thereof.  Not later than 3:00 P.M.,
Chicago time, on the date of a proposed borrowing, each Lender shall provide
the Administrative Agent at the office specified by the Administrative Agent
with Same Day Funds in the appropriate currency covering such Lender’s Pro Rata
Share of such borrowing and, so long as the Administrative Agent has not
received written notice that the conditions precedent set forth in Section 11
with respect to such borrowing have not been satisfied, the Administrative
Agent shall pay over the funds received by the Administrative Agent to the
Company on the requested borrowing date. 
Each borrowing shall be on a Business Day.  Each Base Rate borrowing shall be in an
aggregate amount of at least $5,000,000 and an integral multiple of $1,000,000,
and each Eurocurrency Rate borrowing shall be in an aggregate amount of at least
$5,000,000 and an integral multiple of at least $1,000,000.

2.2.3        Conversion and Continuation Procedures. 
(a)  Subject to Section 2.2.1,
the Company may, upon irrevocable written notice to the Administrative Agent in
accordance with clause (b) below:

(A)          elect, as of any Business Day, to convert any Loans (or any part
thereof in an aggregate amount not less than $5,000,000 and an integral
multiple of $1,000,000) into Loans of the other type;

(B)           elect, as of the last day of the applicable Interest Period, to
continue any Eurocurrency Rate Loans denominated in the same currency having
Interest Periods expiring on such day (or any part thereof in an aggregate
amount not less than $5,000,000 and an integral multiple of $1,000,000) for a
new Interest Period;

provided
that after giving effect to any prepayment, conversion or continuation, the
aggregate principal amount of each Group of Eurocurrency Rate Loans shall be at
least $5,000,000 and an integral multiple of $1,000,000.

 20

 

(b)                                 The
Company shall give written notice (each such written notice, a “Notice of
Conversion/Continuation”) substantially in the form of Exhibit E to
the Administrative Agent of each proposed conversion or continuation not later
than (i) in the case of conversion into Base Rate Loans, 12:00 Noon, Chicago
time, on the proposed date of such conversion, (ii) in the case of conversion
into or continuation of Eurocurrency Rate Loans denominated in Dollars, 12:00
Noon, Chicago time, at least three Business Days prior to the proposed date of
such conversion or continuation, and (iii) in the case of conversion into, or
continuation of Eurocurrency Rate Loans denominated in a Foreign Currency,
12:00 Noon, Chicago time, at least four Business Days prior to the proposed
date of such conversion or continuation, specifying in each case:

(A)                              the
proposed date of conversion or continuation;

(B)                                the
aggregate amount and currency of Loans to be converted or continued;

(C)                                the
type of Loans resulting from the proposed conversion or continuation; and

(D)                               in
the case of conversion into, or continuation of, Eurocurrency Rate Loans, the
duration of the requested Interest Period therefor.

(c)                                  If
upon the expiration of any Interest Period applicable to Eurocurrency Rate
Loans, the Company has failed to select timely a new Interest Period to be
applicable to such Eurocurrency Rate Loans, the Company shall be deemed to have
elected to convert such Eurocurrency Rate Loans into Base Rate Loans effective
on the last day of such Interest Period; provided, that if such
Eurocurrency Rate Loans are not denominated in Dollars then the Company shall
be deemed to have elected to continue such Eurocurrency Rate Loans for an
additional one month Interest Period.

(d)                                 The
Administrative Agent will promptly notify each Lender of its receipt of a
notice of conversion or continuation pursuant to this Section 2.2.3 or,
if no timely notice is provided by the Company, of the details of any automatic
conversion.

(e)                                  Any
conversion of a Eurocurrency Rate Loan on a day other than the last day of an
Interest Period therefor shall be subject to Section 8.4.

2.2.4                        Swing
Line Facility.

(a)                                  The
Administrative Agent shall notify the Swing Line Lender upon the Administrative
Agent’s receipt of any Notice of Borrowing.  Subject to the terms and conditions hereof,
the Swing Line Lender may, in its sole discretion, make available from time to
time until the Termination Date advances in Dollars (each, a “Swing Line
Loan”) in accordance with any such notice, notwithstanding that after
making a requested Swing Line Loan, the sum of the Swing Line Lender’s Pro Rata
Share of the Revolving Outstanding and all outstanding Swing Line Loans, may
exceed the Swing Line Lender’s Pro Rata Share of the Revolving Commitment.  The provisions of this Section 2.2.4
shall not relieve Lenders of their obligations to make Revolving Loans under Section
2.1.1; provided that if the Swing Line Lender makes a Swing Line
Loan pursuant to any such notice, such Swing Line Loan shall be in lieu of any
Revolving Loan that otherwise may be made by the Lenders pursuant to such
notice.  The aggregate amount of Swing
Line Loans outstanding shall not exceed at any time Swing Line Availability.  Until the Termination Date, the Company may
from time to time borrow, repay and reborrow under this Section 2.2.4.  Each Swing Line Loan shall be made pursuant
to a Notice of Borrowing delivered by the Company to the Administrative Agent
in accordance with Section 2.2.2. 
Any such notice must be given no later

 21
 

 

than 2:00 P.M.,
Chicago time, on the Business Day of the proposed Swing Line Loan.  Unless the Swing Line Lender has received at
least one Business Day’s prior written notice from the Required Lenders
instructing it not to make a Swing Line Loan, the Swing Line Lender shall,
notwithstanding the failure of any condition precedent set forth in Section
12.2, be entitled to fund that Swing Line Loan, and to have such Lender
make Revolving Loans in accordance with Section 2.2.4(c) or purchase
participating interests in accordance with Section 2.2.4(d).   Notwithstanding any other provision of this
Agreement or the other Loan Documents, each Swing Line Loan shall constitute a
Base Rate Loan.  The Company shall repay
the aggregate outstanding principal amount of each Swing Line Loan upon demand
therefor by the Administrative Agent.

(b)                                 The
entire unpaid balance of each Swing Line Loan and all other noncontingent
Obligations shall be immediately due and payable in full in Same Day Funds on
the Termination Date if not sooner paid in full.

(c)                                  The
Swing Line Lender, at any time and from time to time no less frequently than
once weekly, shall on behalf of the Company (and the Company hereby irrevocably
authorizes the Swing Line Lender to so act on its behalf) request each Lender with
a Revolving Commitment (including the Swing Line Lender) to make a Revolving
Loan to the Company (which shall be a Base Rate Loan) in an amount equal to
that Lender’s Pro Rata Share of the principal amount of all Swing Line Loans
(the “Refunded Swing Line Loan”) outstanding on the date such notice is
given.  Unless any of the events
described in Section 13.1.4 has occurred (in which event the procedures
of Section 2.2.4(d) shall apply) and regardless of whether the
conditions precedent set forth in this Agreement to the making of a Revolving
Loan are then satisfied, each Lender shall disburse directly to the
Administrative Agent, its Pro Rata Share on behalf of the Swing Line Lender,
prior to 2:00 P.M., Chicago time, in Same Day Funds on the date that notice is
given (provided that such notice is given by 1:00 p.m., Chicago time, on
such date).  The proceeds of those
Revolving Loans shall be immediately paid to the Swing Line Lender and applied
to repay the Refunded Swing Line Loan.

(d)                                 If,
prior to refunding a Swing Line Loan with a Revolving Loan pursuant to Section
2.2.4(c), one of the events described in Section 13.1.4 has
occurred, then, subject to the provisions of Section 2.2.4(e) below,
each Lender shall, on the date such Revolving Loan was to have been made for
the benefit of the Company, purchase from the Swing Line Lender an undivided
participation interest in the Swing Line Loan in an amount equal to its Pro
Rata Share of such Swing Line Loan.  Upon
request, each Lender shall promptly transfer to the Swing Line Lender, in Same
Day Funds, the amount of its participation interest.

(e)                                  Each
Lender’s obligation to make Revolving Loans in accordance with Section
2.2.4(c) and to purchase participation interests in accordance with Section
2.2.4(d) shall be absolute and unconditional and shall not be affected by
any circumstance, including (i) any setoff, counterclaim, recoupment, defense
or other right that such Lender may have against the Swing Line Lender, the
Company or any other Person for any reason whatsoever; (ii) the occurrence or
continuance of any Unmatured Event of Default or Event of Default; (iii) any
inability of the Company to satisfy the conditions precedent to borrowing set
forth in this Agreement at any time or (iv) any other circumstance, happening
or event whatsoever, whether or not similar to any of the foregoing.  If and to the extent any Lender shall not
have made such amount available to the Administrative Agent or the Swing Line
Lender, as applicable, by 2:00 P.M., Chicago time, the amount required pursuant
to Sections 2.2.4(c) or 2.2.4(d), as the case may be, on the Business
Day on which such Lender receives notice from the Administrative Agent of such
payment or disbursement (it being understood that any such notice received
after noon, Chicago time, on any Business Day shall be deemed to have been
received on the next following Business

 22
 

 

Day), such
Lender agrees to pay interest on such amount to the Administrative Agent for
the Swing Line Lender’s account forthwith on demand, for each day from the date
such amount was to have been delivered to the Administrative Agent to the date
such amount is paid, at a rate per annum equal to (a) for the first three days
after demand, the Federal Funds Rate from time to time in effect and (b) thereafter,
the Base Rate from time to time in effect.

2.3                                 Letter
of Credit Procedures.

2.3.1                        L/C
Applications.  The Company shall
execute and deliver to the Issuing Lender the Master Letter of Credit Agreement
from time to time in effect.  The Company
shall give notice to the Administrative Agent and the Issuing Lender of the
proposed issuance of each Letter of Credit on a Business Day which is at least
three Business Days (or such lesser number of days as the Administrative Agent
and the Issuing Lender shall agree in any particular instance in their sole
discretion) prior to the proposed date of issuance of such Letter of
Credit.  Each such notice shall be
accompanied by an L/C Application, duly executed by the Company and in all
respects satisfactory to the Administrative Agent and the Issuing Lender,
together with such other documentation as the Administrative Agent or the
Issuing Lender may request in support thereof, it being understood that each
L/C Application shall specify, among other things, the date on which the
proposed Letter of Credit is to be issued, the currency in which such Letter of
Credit shall be denominated, which shall be an Agreed Currency, the expiration
date of such Letter of Credit (which shall not be later than the scheduled
Termination Date (unless such Letter of Credit is Cash Collateralized)) and
whether such Letter of Credit is to be transferable in whole or in part.  Any Letter of Credit outstanding after the
scheduled Termination Date which is Cash Collateralized for the benefit of the
Issuing Lender shall be the sole responsibility of the Issuing Lender.  So long as the Issuing Lender has not
received written notice that the conditions precedent set forth in Section
12 with respect to the issuance of such Letter of Credit have not been
satisfied, the Issuing Lender shall issue such Letter of Credit on the
requested issuance date.  The Issuing
Lender shall promptly advise the Administrative Agent of the issuance of each
Letter of Credit and of any amendment thereto, extension thereof or event or
circumstance changing the amount available for drawing thereunder.  In the event of any inconsistency between the
terms of the Master Letter of Credit Agreement, any L/C Application and the
terms of this Agreement, the terms of this Agreement shall control.

2.3.2                        Participations
in Letters of Credit.  Concurrently
with the issuance of each Letter of Credit, the Issuing Lender shall be deemed
to have sold and transferred to each Lender with a Revolving Loan Commitment,
and each such Lender shall be deemed irrevocably and unconditionally to have
purchased and received from the Issuing Lender, without recourse or warranty,
an undivided interest and participation, to the extent of such Lender’s Pro
Rata Share, in such Letter of Credit and the Company’s reimbursement
obligations with respect thereto.  If the
Company does not pay any reimbursement obligation when due in accordance with Section
2.3.3, the Company shall be deemed to have immediately requested that the
Lenders make a Revolving Loan which is a Base Rate Loan in a principal amount
equal to such reimbursement obligations. 
The Administrative Agent shall promptly notify such Lenders of such
deemed request and, without the necessity of compliance with the requirements
of Section 2.2.2, Section 12.2 or otherwise such Lender shall
make available to the Administrative Agent its Pro Rata Share of such Loan in
accordance with Section 2.3.4. 
The proceeds of such Loan shall be paid over by the Administrative Agent
to the Issuing Lender for the account of the Company in satisfaction of such
reimbursement obligations.  For the
purposes of this Agreement, the unparticipated portion of each Letter of Credit
shall be deemed to be the Issuing Lender’s “participation” therein.  The Issuing Lender hereby agrees, upon
request of the Administrative Agent or any Lender, to deliver to the
Administrative Agent or

 23
 

 

such Lender a list of all outstanding Letters of Credit issued by the
Issuing Lender, together with such information related thereto as the
Administrative Agent or such Lender may reasonably request.

2.3.3                        Reimbursement
Obligations.  (a) The Company hereby
unconditionally and irrevocably agrees to reimburse the Issuing Lender for each
payment or disbursement made by the Issuing Lender under any Letter of Credit
honoring any demand for payment made by the beneficiary thereunder, in each
case on the date that such payment or disbursement is made.  Any amount not reimbursed on the date of such
payment or disbursement shall bear interest for the ratable account of the
Issuing Lender and each Lender which has funded its Pro Rata Share of such
payment or disbursement from the date of such payment or disbursement to the
date that the Issuing Lender is reimbursed by the Company therefor, payable on
demand, at a rate per annum equal to the Base Rate from time to time in effect,
plus, beginning on the third Business Day after receipt of notice from
the Issuing Lender of such payment or disbursement, 2%.  The Issuing Lender shall notify the Company
and the Administrative Agent whenever any demand for payment is made under any
Letter of Credit by the beneficiary thereunder; provided, that the
failure of the Issuing Lender to so notify the Company or the Administrative
Agent shall not affect the rights of the Issuing Lender or the Lenders in any
manner whatsoever, subject to the Company’s retention of its right to bring a
claim to the extent it is prejudiced by such failure.

(b)                                 The
Company’s reimbursement obligations hereunder shall be irrevocable and
unconditional under all circumstances, including (i) any lack of validity or
enforceability of any Letter of Credit, this Agreement or any other Loan
Document, (ii) the existence of any claim, set-off, defense or other right
which any Loan Party may have at any time against a beneficiary named in a
Letter of Credit, any transferee of any Letter of Credit (or any Person for
whom any such transferee may be acting), the Administrative Agent, the Issuing
Lender, any Lender or any other Person, whether in connection with any Letter
of Credit, this Agreement, any other Loan Document, the transactions
contemplated herein or any unrelated transactions (including any underlying
transaction between any Loan Party and the beneficiary named in any Letter of
Credit), (iii) the validity, sufficiency or genuineness of any document which
the Issuing Lender has determined complies on its face with the terms of the
applicable Letter of Credit, even if such document should later prove to have
been forged, fraudulent, invalid or insufficient in any respect or any
statement therein shall have been untrue or inaccurate in any respect, or (iv)
the surrender or impairment of any security for the performance or observance
of any of the terms hereof.  Without
limiting the foregoing, no action or omission whatsoever by the Administrative
Agent or any Lender (excluding any Lender in its capacity as the Issuing
Lender) under or in connection with any Letter of Credit or any related matters
shall result in any liability of the Administrative Agent or any Lender to the
Company, or relieve the Company of any of its obligations hereunder to any such
Person.

2.3.4                        Funding
by Lenders to Issuing Lender.  If the
Issuing Lender makes any payment or disbursement under any Letter of Credit and
(a) the Company has not reimbursed the Issuing Lender in full for such payment
or disbursement by 11:00 A.M., Chicago time, on the date of such payment or
disbursement, (b) a Revolving Loan may not be made in accordance with Section
2.3.2 or (c) any reimbursement received by the Issuing Lender from the
Company is or must be returned or rescinded upon or during any bankruptcy or
reorganization of the Company or otherwise, each Lender with a Revolving Loan
Commitment shall be obligated to pay to the Administrative Agent for the account
of the Issuing Lender, in full or partial payment of the purchase price of its
participation in such Letter of Credit, its Pro Rata Share of such payment or
disbursement (but no such payment shall diminish the obligations of the Company
under Section 2.3.3), and, upon notice from the Issuing Lender, the
Administrative Agent shall promptly notify each Lender thereof.  Each Lender irrevocably and unconditionally
agrees to so pay to the Administrative Agent in immediately available funds for
the Issuing Lender’s account the amount

 24
 

 

of such other Lender’s Pro Rata Share of such payment or
disbursement.  If and to the extent any
Lender shall not have made such amount available to the Administrative Agent by
2:00 P.M., Chicago time, on the Business Day on which such Lender receives
notice from the Administrative Agent of such payment or disbursement (it being
understood that any such notice received after noon, Chicago time, on any
Business Day shall be deemed to have been received on the next following
Business Day), such Lender agrees to pay interest on such amount to the
Administrative Agent for the Issuing Lender’s account forthwith on demand, for
each day from the date such amount was to have been delivered to the
Administrative Agent to the date such amount is paid, at a rate per annum equal
to (a) for the first three days after demand, the Federal Funds Rate from time
to time in effect and (b) thereafter, the Base Rate from time to time in
effect.  Any Lender’s failure to make
available to the Administrative Agent its Pro Rata Share of any such payment or
disbursement shall not relieve any Lender of its obligation hereunder to make
available to the Administrative Agent such Lender’s Pro Rata Share of such
payment, but no Lender shall be responsible for the failure of any Lender to
make available to the Administrative Agent such other Lender’s Pro Rata Share
of any such payment or disbursement.

2.4                                 Commitments
Several.  The failure of any Lender
to make a requested Loan on any date shall not relieve any other Lender of its
obligation (if any) to make a Loan on such date, but no Lender shall be
responsible for the failure of any other Lender to make any Loan to be made by
such other Lender.

2.5                                 Certain
Conditions.  Except as otherwise
provided in Section 2.2.4 of this Agreement, no Lender shall have an
obligation to make any Loan, or to permit the continuation of or any conversion
into any Eurocurrency Rate Loan, and the Issuing Lender shall not have any
obligation to issue any Letter of Credit, if an Event of Default or Unmatured
Event of Default exists.

SECTION 3                                   EVIDENCING
OF LOANS.

3.1                                 Notes.  The Loans of each Lender shall be evidenced
by a Note, with appropriate insertions, payable to the order of such Lender in
a face principal amount equal to the sum of such Lender’s Revolving Loan
Commitment plus the principal amount of such Lender’s Term Loans.

3.2                                 Recordkeeping.  The Administrative Agent, on behalf of each
Lender, shall record in its records, the date and amount of each Loan made by
each Lender, each repayment or conversion thereof and, in the case of each
Eurocurrency Rate Loan, the dates on which each Interest Period for such Loan
shall begin and end.  The aggregate
unpaid principal amount so recorded shall be rebuttably presumptive evidence of
the principal amount of the Loans owing and unpaid.  The failure to so record any such amount or
any error in so recording any such amount shall not, however, limit or
otherwise affect the Obligations of the Company hereunder or under any Note to
repay the principal amount of the Loans hereunder, together with all interest
accruing thereon.

SECTION 4                                   INTEREST.

4.1                                 Interest
Rates.  The Company promises to pay
interest on the unpaid principal amount of each Loan for the period commencing
on the date of such Loan until such Loan is paid in full as follows:

(a)                                  at
all times while such Loan is a Base Rate Loan, at a rate per annum equal to the
sum of the Base Rate from time to time in effect; and

 25
 

 

(b)                                 at
all times while such Loan is a Eurocurrency Rate Loan, at a rate per annum
equal to the sum of the Eurocurrency Rate applicable to each Interest Period
for such Loan plus the Eurocurrency Rate Margin from time to time in effect;

provided that at any time an Event of Default exists, unless
the Required Lenders otherwise consent, the interest rate applicable to each
Loan shall be increased by 2% (and, at any time that an Event of Default under Section
13.1.1 has occurred and is continuing, in the case of Obligations arising
under this Agreement not bearing interest, such Obligations shall bear interest
at the Base Rate applicable to Revolving Loans plus 2%), provided  further
that such increase may thereafter be rescinded by the Required Lenders,
notwithstanding Section 15.1. 
Notwithstanding the foregoing, upon the occurrence of an Event of
Default under Section 13.1.1 or 13.1.4, such increase shall occur
automatically.

4.2                                 Interest
Payment Dates.  Accrued interest on
each Base Rate Loan shall be payable in arrears on the last day of each
calendar month and at maturity.  Accrued
interest on each Eurocurrency Rate Loan shall be payable on the last day of
each Interest Period relating to such Loan (and, in the case of a Eurocurrency
Rate Loan with an Interest Period in excess of three months, on the three-month
anniversary of the first day of such Interest Period), upon a prepayment of
such Loan, and at maturity.  After
maturity, and at any time an Event of Default exists, accrued interest on all
Loans shall be payable on demand.

4.3                                 Setting
and Notice of Eurocurrency Rates. 
The applicable Eurocurrency Rate for each Interest Period shall be
determined by the Administrative Agent, and notice thereof shall be given by
the Administrative Agent promptly to the Company and each Lender.  Each determination of the applicable
Eurocurrency Rate by the Administrative Agent shall be conclusive and binding
upon the parties hereto, in the absence of demonstrable error.  The Administrative Agent shall, upon written
request of the Company or any Lender, deliver to the Company or such Lender a
statement showing the computations used by the Administrative Agent in
determining any applicable Eurocurrency Rate hereunder.

4.4                                 Computation
of Interest.  Interest shall be
computed for the actual number of days elapsed on the basis of a year of (a)
360 days for interest calculated at the Eurocurrency Rate and (b) 365/366 days
for interest calculated at the Base Rate and for Eurocurrency Rate Loans
denominated in Sterling in accordance with Section 7.1.  The applicable interest rate for each Base
Rate Loan shall change simultaneously with each change in the Base Rate.

SECTION 5                                   FEES.

5.1                                 Non-Use
Fee.  The Company agrees to pay to
the Administrative Agent for the account of each Lender a non-use fee, for the
period from the Closing Date to the Termination Date, at the Non-Use Fee Rate
in effect from time to time of such Lender’s Pro Rata Share (as adjusted from
time to time) of the unused amount of the Revolving Commitment (calculated
without giving effect to any outstanding Swing Line Loans).  For purposes of calculating usage under this
Section, the Revolving Commitment shall be deemed used to the extent of
Revolving Outstandings.  Such non-use fee
shall be payable in arrears on the last day of each Fiscal Quarter and on the
Termination Date for any period then ending for which such non-use fee shall
not have previously been paid.  The
non-use fee shall be computed for the actual number of days elapsed on the
basis of a year of 360 days.

5.2                                 Letter
of Credit Fees.  (a)  The Company agrees to pay to the Administrative
Agent for the account of each Lender a letter of credit fee for each Letter of
Credit equal to the L/C Fee Rate in effect from time to time of such Lender’s
Pro Rata Share (as adjusted from time to time) of the undrawn

 26
 

 

amount of such Letter of Credit (computed for the actual number of days
elapsed on the basis of a year of 360 days); provided that, unless the
Required Lenders otherwise consent, the rate applicable to each Letter of
Credit shall be increased by 2% at any time that an Event of Default exists.  Such letter of credit fee shall be payable in
arrears on the last day of each calendar quarter and on the Termination Date
(or such later date on which such Letter of Credit expires or is terminated)
for the period from the date of the issuance of each Letter of Credit (or the
last day on which the letter of credit fee was paid with respect thereto) to
the date such payment is due or, if earlier, the date on which such Letter of
Credit expired or was terminated.

(b)                                 In
addition, with respect to each Letter of Credit, the Company agrees to pay to
the Issuing Lender, for its own account, (i) such fees and expenses as the
Issuing Lender customarily requires in connection with the issuance,
negotiation, processing and/or administration of letters of credit in similar
situations and (ii) a letter of credit fronting fee in the amount and at the
times agreed to by the Company and the Issuing Lender.

5.3                                 Administrative
Agent’s Fees.  The Company agrees to
pay to the Administrative Agent such agent’s fees as are mutually agreed to
from time to time by the Company and the Administrative Agent including the
fees set forth in the Agent Fee Letter.

SECTION 6                                   REDUCTION OR
TERMINATION OF THE REVOLVING COMMITMENT; PREPAYMENTS.

6.1                                 Reduction
or Termination of the Revolving Commitment.

6.1.1                        Voluntary
Reduction or Termination of the Revolving Commitment.  The Company may from time to time on at least
five Business Days’ prior written notice received by the Administrative Agent
(which shall promptly advise each Lender thereof) permanently reduce the
Revolving Commitment to an amount not less than the Revolving Outstandings plus
the outstanding amount of all Swing Line Loans. 
Any such reduction shall be in an amount not less than $5,000,000 or a
higher integral multiple of $1,000,000. 
Concurrently with any reduction of the Revolving Commitment to zero, the
Company shall pay all interest on the Revolving Loans, all non-use fees and all
letter of credit fees and shall Cash Collateralize in full all obligations
arising with respect to the Letters of Credit.

6.1.2                        All
Reductions of the Revolving Commitment. 
All reductions of the Revolving Commitment shall reduce the Commitments
ratably among the Lenders according to their respective Pro Rata Shares.

6.2                                 Prepayments.

6.2.1                        Voluntary
Prepayments.  The Company may from
time to time prepay the Loans in whole or in part; provided that the
Company shall give the Administrative Agent (which shall promptly advise each
Lender) notice thereof not later than 11:00 A.M., Chicago time, on the day of
such prepayment (which shall be a Business Day), specifying the Loans to be
prepaid and the date and amount of prepayment. 
Any such partial prepayment shall be in an amount not less than
$5,000,000 and an integral multiple of $1,000,000.

6.2.2                        Mandatory
Prepayments.  (a) If on any day on
which the Revolving Commitment is reduced pursuant to Section 6.1.2 the
Revolving Outstandings plus the outstanding amount of the Swing Line
Loan exceeds the Revolving Commitment, the Company shall immediately prepay
Revolving Loans

 27
 

 

or Cash Collateralize the outstanding Letters of Credit, or do a
combination of the foregoing, in an amount sufficient to eliminate such excess.

(b)                                 If
on any Computation Date the Administrative Agent determines that (i) the sum of
the Revolving Outstandings plus the outstanding amount of the Swing Line
Loan exceeds the Revolving Commitment due to a change in applicable rates of
exchange between Dollars and any applicable currency then (A) the
Administrative Agent shall promptly notify Company and (B) Company shall
promptly (subject to the notice requirements of Section 6.2.1) prepay
Loans (and, after prepaying all Loans, Cash Collateralize any outstanding
Letters of Credit by depositing the requisite amount with the Issuing Lender)
in an amount sufficient to eliminate such excess, or (ii) the Dollar Equivalent
of the aggregate principal amount of all Revolving Loans denominated in a
Foreign Currency exceeds $10,000,000 due to a change in applicable rates of
exchange between Dollars and any applicable currency then (A) the
Administrative Agent shall promptly notify Company and (B) Company shall
promptly (subject to the notice requirements of Section 6.2.1) prepay
Loans denominated in Foreign Currencies in an amount sufficient to eliminate
such excess.

6.3                                 Manner
of Prepayments.  Each voluntary
partial prepayment shall be in a principal amount of $5,000,000 or a higher
integral multiple of $1,000,000.  Any
partial prepayment of a Group of Eurocurrency Rate Loans shall be subject to
the proviso to Section 2.2.3(a). 
Any prepayment of a Eurocurrency Rate Loan on a day other than the last
day of an Interest Period therefor shall include interest on the principal
amount being repaid and shall be subject to Section 8.4.  Except as otherwise provided by this
Agreement, all principal payments in respect of the Loans (other than the Swing
Line Loans) shall be applied first, to repay outstanding Base Rate Loans and
then to repay outstanding Eurocurrency Rate Loans in direct order of Interest
Period maturities.

6.4                                 Increase
in Commitments.

(a)                                  Provided
there exists no Unmatured Event of Default or Event of Default, upon notice to
the Administrative Agent (which shall promptly notify the Lenders), Company may
from time to time request an increase in the Revolving Commitment Amount by an
amount (for all such requests) not exceeding $100,000,000; provided that (i)
the Revolving Commitment may not exceed $200,000,000; and provided further that
any such request for an increase shall be in a minimum amount of $10,000,000
and in multiples of $5,000,000 in excess
thereof and (ii) Company may not request more than four increases.  At the time of sending such notice, Company
(in consultation with the Administrative Agent) shall specify the time period
within which each Lender is requested to respond (which shall in no event be
less than ten Business Days from the date of delivery of such notice to the
Lenders).

(b)                                 Each
Lender shall notify the Administrative Agent within such time period whether or
not it agrees to increase its Revolving Commitment and, if so, whether by an
amount equal to, greater than, or less than its Pro Rata Share of such
requested increase.  Any Lender not
responding within such time period shall be deemed to have declined to increase
its Revolving Commitment.

(c)                                  The
Administrative Agent shall notify Company and each Lender of the Lenders’
responses to each request made hereunder. 
If the Lenders do not agree to the full amount of a requested increase,
subject to the approval of the Administrative Agent and the Issuing Lender
(which approvals shall not be unreasonably withheld), Company may also invite
additional Persons to become Lenders pursuant to a joinder agreement in form
and substance satisfactory to the Administrative Agent and its counsel.

 28
 

 

(d)                                 If
the Revolving Commitment Amount is increased in accordance with this Section,
the Administrative Agent and Company shall determine the effective date (the “Increase Effective Date”) and the
final allocation of such increase.  The
Administrative Agent shall promptly notify Company and the Lenders of the final
allocation of such increase, the Increase Effective Date and revised Pro Rata
Shares.

(e)                                  As
a condition precedent to such increase, Company shall deliver to the
Administrative Agent an Officer’s Certificate dated as of the Increase
Effective Date (i) certifying and attaching the resolutions adopted by Company
approving or consenting to such increase, and (ii) certifying that, before and
after giving effect to such increase, (A) the representations and warranties
contained in Section 5 and the other Loan Documents are true and correct on and
as of the Increase Effective Date, except to the extent that such
representations and warranties specifically refer to an earlier date, in which
case they are true and correct as of such earlier date, and (B) no Unmatured
Event of Default or Event of Default exists or shall result from such increase
to the Revolving Commitment.  The Lenders
(new or existing) shall accept an assignment from the existing Lenders, and the
existing Lenders shall make an assignment to the new or existing Lender
accepting a new or increased Commitment, of a direct or participation interest
in each then outstanding Loan and Letter of Credit such that, after giving
effect thereto, all Revolving Outstandings hereunder are held ratably by the
Lenders in proportion to their respective Commitments, Assignments pursuant to
the preceding sentence shall be made in exchange for the principal amount
assigned plus accrued and unpaid interest and facility and letter of credit
fees.  Company shall make any payments
under Section 8.4 resulting from such assignments.

(f)                                    This
Section shall supersede any provisions in Section 7.5 or 15.1 to the contrary.

6.5                                 Repayments.  The Revolving Loans of each Lender shall be
paid in full and the Revolving Commitment shall terminate on the Termination
Date.

SECTION 7                                   MAKING
AND PRORATION OF PAYMENTS; SETOFF; TAXES.

7.1                                 Making
of Payments.  All payments of
principal or interest on the Notes, and of all fees, shall be made by the
Company to the Administrative Agent in Same Day Funds at the office specified
by the Administrative Agent not later than noon, Chicago time, on the date due;
and funds received after that hour shall be deemed to have been received by the
Administrative Agent on the following Business Day.  Except as otherwise expressly provided
herein, all payments by Company hereunder with respect to principal and
interest on Loans denominated in a Foreign Currency and Obligations in respect
of Letters of Credit denominated in a Foreign Currency shall be made to
Administrative Agent, as set forth above, in such Foreign Currency and in Same
Day Funds.  If, for any reason, Company
is prohibited by any legal requirement from making any required payment hereunder
in a Foreign Currency, Company shall make such payment in Dollars in the Dollar
Equivalent of the Foreign Currency payment amount.  The Administrative Agent shall promptly remit
to each Lender its share of all such payments received in collected funds by
the Administrative Agent for the account of such Lender.  All payments under Section 8.1 shall be made
by the Company directly to the Lender entitled thereto without setoff,
counterclaim or other defense.

7.2                                 Application
of Certain Payments.  So long as no
Unmatured Event of Default  or Event of
Default has occurred and is continuing, (a) payments matching specific
scheduled payments then due shall be applied to those scheduled payments and
(b) voluntary and mandatory prepayments shall be applied as set forth in Sections
6.2 and 6.3.  Concurrently
with each remittance to any Lender of its share of any such payment, the
Administrative Agent shall advise such Lender as to the application of such
payment.

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

7.4                                 Setoff.  The Company, for itself and each other Loan
Party, agrees that the Administrative Agent and each Lender have all rights of
set-off and bankers’ lien provided by applicable law, and in addition thereto,
the Company, for itself and each other Loan Party, agrees that at any time any
Event of Default exists, the Administrative Agent and each Lender may apply to
the payment of any Obligations of the Company and each other Loan Party
hereunder, whether or not then due, any and all balances, credits, deposits,
accounts or moneys of the Company and each other Loan Party then or thereafter
with the Administrative Agent or such Lender.

7.5                                 Proration
of Payments.  If any Lender shall
obtain any payment or other recovery (whether voluntary, involuntary, by
application of offset or otherwise, on account of (a) principal of or interest
on any Loan, but excluding (i) any payment pursuant to Section 8.7 or 15.6
and (ii) payments of interest on any Affected Loan) or (b) its participation in
any Letter of Credit) in excess of its applicable Pro Rata Share of payments
and other recoveries obtained by all Lenders on account of principal of and
interest on the Loans (or such participation) then held by them, then such
Lender shall purchase from the other Lenders such participations in the Loans
(or sub-participations in Letters of Credit) held by them as shall be necessary
to cause such purchasing Lender to share the excess payment or other recovery
ratably with each of them; provided that if all or any portion of the
excess payment or other recovery is thereafter recovered from such purchasing
Lender, the purchase shall be rescinded and the purchase price restored to the
extent of such recovery.

7.6                                 Taxes.

(a)                                  All
payments made by the Company hereunder or under any Loan Documents shall be
made without setoff, counterclaim, or other defense.  To the extent permitted by applicable law,
all payments hereunder or under the Loan Documents (including any payment of
principal, interest, or fees) to, or for the benefit, of any person shall be
made by the Company free and clear of and without deduction or withholding for,
or account of, any Taxes now or hereinafter imposed by any taxing authority.

(b)                                 If
the Company makes any payment hereunder or under any Loan Document in respect
of which it is required by applicable law to deduct or withhold any Taxes, the
Company shall increase the payment hereunder or under any such Loan Document
such that after the reduction for the amount of Taxes withheld (and any taxes
withheld or imposed with respect to the additional payments required under this
Section 7.6(b)), the amount paid to the Lenders or the Administrative
Agent equals the amount that was payable hereunder or under any such Loan
Document without regard to this Section 7.6(b).  To the extent the Company withholds any Taxes
on payments hereunder or under any Loan Document, the Company shall pay the
full amount deducted to the relevant taxing authority within the time allowed
for payment under applicable law and shall deliver to the Administrative Agent
within 30 days after it has made payment to such authority a receipt issued by
such authority (or other evidence satisfactory to the Administrative Agent)
evidencing the payment of all amounts so required to be deducted or withheld
from such payment.

 30

 

(c)           If any Lender or the
Administrative Agent is required by law to make any payments of any Taxes on or
in relation to any amounts received or receivable hereunder or under any other
Loan Document, or any Tax is assessed against a Lender or the Administrative
Agent with respect to amounts received or receivable hereunder or under any
other Loan Document, the Company will indemnify such person against (i) such
Tax (and any reasonable counsel fees and expenses associated with such Tax) and
(ii) any taxes imposed as a result of the receipt of the payment under this Section
7.6(c).  A certificate prepared in
good faith as to the amount of such payment by such Lender or the
Administrative Agent shall, absent manifest error, be final, conclusive, and
binding on all parties.

(d)           (i)            To the extent permitted by
applicable law, each Lender that is not a United States person within the
meaning of Code Section 7701(a)(30) (a “Non-U.S. Participant”) shall
deliver to the Company and the Administrative Agent on or prior to the Closing
Date (or in the case of a Lender that is an Assignee, on the date of such
assignment to such Lender) two accurate and complete original signed copies of
IRS Form W-8BEN, W-8ECI, or W-8IMY (or any successor or other applicable form
prescribed by the IRS) certifying to such Lender’s entitlement to a complete
exemption from, or a reduced rate in, United States withholding tax on interest
payments to be made hereunder or any Loan. 
If a Lender that is a Non-U.S. Participant is claiming a complete exemption
from withholding on interest pursuant to Code Section 871(h) or 881(c), the
Lender shall deliver (along with two accurate and complete original signed
copies of IRS Form W-8BEN) a certificate in form and substance reasonably
acceptable to Administrative Agent (any such certificate, a “Withholding
Certificate”).  In addition, each
Lender that is a Non-U.S. Participant 
agrees that from time to time after the Closing Date, (or in the case of
a Lender that is an Assignee, after the date of the assignment to such Lender),
when a lapse in time (or change in circumstances occurs) renders the prior
certificates hereunder obsolete or inaccurate in any material respect, such
Lender shall, to the extent permitted under applicable law, deliver to the
Company and the Administrative Agent two new and accurate and complete original
signed copies of an IRS Form W-8BEN, W-8ECI, or W-8IMY (or any successor or
other applicable forms prescribed by the IRS), and if applicable, a new
Withholding Certificate, to confirm or establish the entitlement of such Lender
or the Administrative Agent to an exemption from, or reduction in, United
States withholding tax on interest payments to be made hereunder or any Loan.

(ii)           Each Lender that is
not a Non-U.S. Participant (other than any such Lender which is taxed as a
corporation for U.S. federal income tax purposes) shall provide two properly
completed and duly executed copies of IRS Form W-9 (or any successor or other
applicable form) to the Company and the Administrative Agent certifying that
such Lender is exempt from United States backup withholding tax.  To the extent that a form provided pursuant
to this Section 7.6(d)(ii) is rendered obsolete or inaccurate in any
material respect as result of change in circumstances with respect to the
status of a Lender, such Lender shall, to the extent permitted by applicable
law, deliver to the Company and the Administrative Agent revised forms
necessary to confirm or establish the entitlement to such Lender’s or Agent’s
exemption from United States backup withholding tax.

(iii)          The Company shall
not be required to pay additional amounts to a Lender, or indemnify any Lender,
under this Section 7.6 to the extent that such obligations would not
have arisen but for the failure of such Lender to comply with Section 7.6(d).

(iv)          Each Lender agrees
to indemnify the Administrative Agent and hold the Administrative Agent
harmless for the full amount of any and all present or future Taxes and related
liabilities (including penalties, interest, additions to tax and expenses, and
any Taxes imposed by any jurisdiction on amounts payable to the Administrative
Agent under this Section 7.6) which are imposed on or with respect to
principal, interest or fees payable to such Lender hereunder and which are not
paid by the Company

 31
 

 

pursuant to
this Section 7.6, whether or not such Taxes or related liabilities were
correctly or legally asserted.  This
indemnification shall be made within 30 days from the date the Administrative
Agent makes written demand therefor.

SECTION 8                                   INCREASED COSTS;
SPECIAL PROVISIONS FOR EUROCURRENCY RATE LOANS.

8.1           Increased Costs.  (a) 
If, after the date hereof, the adoption of, or any change in, any
applicable law, rule or regulation, or any change in the interpretation or
administration of any applicable law, rule or regulation by any governmental
authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by any Lender with any request or
directive (whether or not having the force of law) of any such authority,
central bank or comparable agency:  (i)
shall impose, modify or deem applicable any reserve (including any reserve
imposed by the FRB, but excluding any reserve included in the determination of
the Eurocurrency Rate pursuant to Section 4), special deposit or similar
requirement against assets of, deposits with or for the account of, or credit
extended by any Lender; or (ii) shall impose on any Lender any other condition
affecting its Eurocurrency Rate Loans, its Note or its obligation to make
Eurocurrency Rate Loans; and the result of anything described in clauses (i)
and (ii) above is to increase the cost to (or to impose a cost on) such Lender
(or any Eurocurrency Rate Office of such Lender) of making or maintaining any Eurocurrency
Rate, or to reduce the amount of any sum received or receivable by such Lender
(or its Eurocurrency Rate Office) under this Agreement or under its Note with
respect thereto, then upon demand by such Lender (which demand shall be
accompanied by a statement setting forth the basis for such demand and a
calculation of the amount thereof in reasonable detail, a copy of which shall
be furnished to the Administrative Agent), the Company shall pay directly to
such Lender such additional amount as will compensate such Lender for such
increased cost or such reduction, so long as such amounts have accrued on or
after the day which is 180 days prior to the date on which such Lender first
made demand therefor.

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

8.2           Basis for
Determining Interest Rate Inadequate or Unfair.  If:

(a)           the Administrative
Agent reasonably determines (which determination shall be binding and
conclusive on the Company absent manifest error) that by reason of
circumstances affecting the

 32
 

 

interbank
Eurocurrency Rate market adequate and reasonable means do not exist for
ascertaining the applicable Eurocurrency Rate; or

(b)           the Required Lenders
advise the Administrative Agent that the Eurocurrency Rate as determined by the
Administrative Agent will not adequately and fairly reflect the cost to such
Lenders of maintaining or funding Eurocurrency Rate Loans for such Interest
Period (taking into account any amount to which such Lenders may be entitled
under Section 8.1) or that the making or funding of Eurocurrency Rate
Loans has become impracticable as a result of an event occurring after the date
of this Agreement which in the opinion of such Lenders materially affects such Loans;

then the Administrative Agent shall promptly
notify the other parties thereof and, so long as such circumstances shall
continue, (i) no Lender shall be under any obligation to make or convert any
Base Rate Loans into Eurocurrency Rate Loans and (ii) on the last day of the
current Interest Period for each Eurocurrency Rate Loan, such Loan shall,
unless then repaid in full, automatically convert to a Base Rate Loan.

8.3           Changes in Law
Rendering Eurocurrency Rate Loans Unlawful. 
If any change in, or the adoption of any new, law or regulation, or any
change in the interpretation of any applicable law or regulation by any
governmental or other regulatory body charged with the administration thereof,
should make it (or in the good faith judgment of any Lender cause a substantial
question as to whether it is) unlawful for any Lender to make, maintain or fund
Eurocurrency Rate Loans, then such Lender shall promptly notify each of the
other parties hereto and, so long as such circumstances shall continue, (a) such
Lender shall have no obligation to make or convert any Base Rate Loan into a
Eurocurrency Rate Loan (but shall make Base Rate Loans concurrently with the
making of or conversion of Base Rate Loans into Eurocurrency Rate Loans by the
Lenders which are not so affected, in each case in an amount equal to the
amount of Eurocurrency Rate Loans which would be made or converted into by such
Lender at such time in the absence of such circumstances) and (b) on the last
day of the current Interest Period for each Eurocurrency Rate Loan of such
Lender (or, in any event,  on such
earlier date as may be required by the relevant law, regulation or
interpretation), such Eurocurrency Rate Loan shall, unless then repaid in full,
automatically convert to a Base Rate Loan. 
Each Base Rate Loan made by a Lender which, but for the circumstances
described in the foregoing sentence, would be a Eurocurrency Rate Loan (an “Affected
Loan”) shall remain outstanding for the period corresponding to the Group
of Eurocurrency Rate Loans of which such Affected Loan would be a part absent
such circumstances.

8.4           Funding Losses.  The Company hereby agrees that upon demand by
any Lender (which demand shall be accompanied by a statement setting forth the
basis for the amount being claimed, a copy of which shall be furnished to the
Administrative Agent), the Company will indemnify such Lender against any net
loss or expense which such Lender may sustain or incur (including any net loss
or expense incurred by reason of the liquidation or reemployment of deposits or
other funds acquired by such Lender to fund or maintain any Eurocurrency Rate
Loan), as reasonably determined by such Lender, as a result of (a) any payment,
prepayment or conversion of any Eurocurrency Rate Loan of such Lender on a date
other than the last day of an Interest Period for such Loan (including any
conversion pursuant to Section 8.3) or (b) any failure of the Company to
borrow, convert or continue any Loan on a date specified therefor in a notice
of borrowing, conversion or continuation pursuant to this Agreement.  For this purpose, all notices to the
Administrative Agent pursuant to this Agreement shall be deemed to be
irrevocable.

 33
 

 

8.5           Right of Lenders
to Fund through Other Offices.  Each
Lender may, if it so elects, fulfill its commitment as to any Eurocurrency Rate
Loan by causing a foreign branch or Affiliate of such Lender to make such Loan;
provided that in such event for the purposes of this Agreement such Loan
shall be deemed to have been made by such Lender and the obligation of the
Company to repay such Loan shall nevertheless be to such Lender and shall be
deemed held by it, to the extent of such Loan, for the account of such branch
or Affiliate.

8.6           Discretion of
Lenders as to Manner of Funding. 
Notwithstanding any provision of this Agreement to the contrary, each
Lender shall be entitled to fund and maintain its funding of all or any part of
its Loans in any manner it sees fit, it being understood, however, that for the
purposes of this Agreement all determinations hereunder shall be made as if
such Lender had actually funded and maintained each Eurocurrency Rate Loan
during each Interest Period for such Loan through the purchase of deposits
having a maturity corresponding to such Interest Period and bearing an interest
rate equal to the Eurocurrency Rate for such Interest Period.

8.7           Mitigation of
Circumstances; Replacement of Lenders. 
(a)  Each Lender shall promptly
notify the Company and the Administrative Agent of any event of which it has
knowledge which will result in, and will use reasonable commercial efforts
available to it (and not, in such Lender’s sole judgment, otherwise
disadvantageous to such Lender) to mitigate or avoid, (i) any obligation by the
Company to pay any amount pursuant to Section 7.6 or 8.1 or (ii)
the occurrence of any circumstances described in Section 8.2 or 8.3
(and, if any Lender has given notice of any such event described in clause (i)
or (ii) above and thereafter such event ceases to exist, such Lender shall
promptly so notify the Company and the Administrative Agent).  Without limiting the foregoing, each Lender
will designate a different funding office if such designation will avoid (or
reduce the cost to the Company of) any event described in clause (i) or (ii)
above and such designation will not, in such Lender’s sole judgment, be
otherwise disadvantageous to such Lender.

(b)           If the Company
becomes obligated to pay additional amounts to any Lender pursuant to Section
7.6 or 8.1, or any Lender gives notice of the occurrence of any
circumstances described in Section 8.2 or 8.3, the Company may
designate another bank which is acceptable to the Administrative Agent and the
Issuing Lender in their reasonable discretion (such other bank being called a “Replacement
Lender”) to purchase the Loans of such Lender and such Lender’s rights
hereunder, without recourse to or warranty by, or expense to, such Lender, for
a purchase price equal to the outstanding principal amount of the Loans payable
to such Lender plus any accrued but unpaid interest on such Loans and all
accrued but unpaid fees owed to such Lender and any other amounts payable to
such Lender under this Agreement, and to assume all the obligations of such
Lender hereunder, and, upon such purchase and assumption (pursuant to an Assignment
Agreement), such Lender shall no longer be a party hereto or have any rights
hereunder (other than rights with respect to indemnities and similar rights
applicable to such Lender prior to the date of such purchase and assumption)
and shall be relieved from all obligations to the Company hereunder, and the
Replacement Lender shall succeed to the rights and obligations of such Lender
hereunder.

8.8           Conclusiveness of
Statements; Survival of Provisions. 
Determinations and statements of any Lender pursuant to Section 8.1,
8.2, 8.3 or 8.4 shall be conclusive absent demonstrable
error.  Lenders may use reasonable
averaging and attribution methods in determining compensation under Sections
8.1 and 8.4, and the provisions of such Sections shall survive repayment
of the Obligations, cancellation of any Notes, expiration or termination of the
Letters of Credit and termination of this Agreement.

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SECTION 9            REPRESENTATIONS AND WARRANTIES.

To induce the Administrative Agent and the Lenders to
enter into this Agreement and to induce the Lenders to make Loans and issue and
participate in Letters of Credit hereunder, the Company represents and warrants
to the Administrative Agent and the Lenders that:

9.1           Organization.  Each Loan Party is validly existing and in
good standing under the laws of its jurisdiction of organization; and each Loan
Party is duly qualified to do business in each jurisdiction where, because of
the nature of its activities or properties, such qualification is required,
except for such jurisdictions where the failure to so qualify would not have a
Material Adverse Effect.

9.2           Authorization; No
Conflict.  Each Loan Party is duly
authorized to execute and deliver each Loan Document to which it is a party,
the Company is duly authorized to borrow monies hereunder and each Loan Party
is duly authorized to perform its Obligations under each Loan Document to which
it is a party.  The execution, delivery
and performance by each Loan Party of each Loan Document to which it is a
party, and the borrowings by the Company hereunder, do not and will not (a)
require any consent or approval of any governmental agency or authority (other
than any consent or approval which has been obtained and is in full force and
effect), (b) conflict with (i) any provision of law, (ii) the charter, by-laws
or other organizational documents of any Loan Party or (iii) any agreement,
indenture, instrument or other document, or any judgment, order or decree,
which is binding upon any Loan Party or any of their respective properties or
(c) require, or result in, the creation or imposition of any Lien on any asset
of any Loan Party.

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

9.4           Financial
Condition.  The audited consolidated
financial statements of the Company and its Subsidiaries as at December 31,
2005 and the unaudited consolidated financial statements of the Company and the
Subsidiaries as at September 30, 2006, copies of each of which have been
delivered to each Lender, were prepared in accordance with GAAP (subject, in
the case of such unaudited statements, to the absence of footnotes and to
normal year-end adjustments) and present fairly the consolidated financial
condition of the Company and its Subsidiaries as at such dates and the results
of their operations for the periods then ended.

9.5           No Material
Adverse Change.  Since December 31,
2005, there has been no material adverse change in the financial condition,
operations, assets, business, properties or prospects of the Loan Parties taken
as a whole.

9.6           Litigation and
Contingent Liabilities.  Except as
set forth on Schedule 9.6, no litigation (including derivative actions),
arbitration proceeding or governmental investigation or proceeding is pending
or, to the Company’s knowledge, threatened against any Loan Party which might
reasonably be expected to have a Material Adverse Effect.  As of the Closing Date, no Loan Party has any
material Contingent Liabilities not permitted by Section 11.1, except
(a) as set forth on Schedule 9.6, and (b) any liability incident to the
litigation described in Schedule 9.6 in response to the representation
set forth in the preceding sentence.

 35
 

 

9.7           Ownership of
Properties; Liens.  Each Loan Party
owns good and, in the case of owned real property,  marketable title to all of its properties and
assets, real and personal, tangible and intangible, of any nature whatsoever
(other than such Loan Party’s intellectual property, which is addressed in Section
9.17), free and clear of all Liens, except as permitted by Section 11.2.

9.8           Subsidiaries.  Schedule 9.8 sets forth each
Subsidiary of Parent as of the date of this Agreement, together with its state
or jurisdiction of formation, its relationship to Parent, including the
percentage of each class of stock or membership interests owned by Parent or
another Subsidiary of Parent, the location of its chief executive office and
its principal place of business.

9.9           Pension Plans.  (a) The Unfunded Liability of all
Pension Plans does not in the aggregate exceed twenty percent of the Total Plan
Liability for all such Pension Plans. 
Each Pension Plan complies in all material respects with all applicable
requirements of law and regulations.  No
contribution failure under Section 412 of the Code, Section 302 of ERISA or the
terms of any Pension Plan has occurred with respect to any Pension Plan,
sufficient to give rise to a Lien under Section 302(f) of ERISA, or otherwise
to have a Material Adverse Effect.  There
are no pending or, to the knowledge of Company, threatened, claims, actions,
investigations or lawsuits against any Pension Plan, any fiduciary of any
Pension Plan, or Company or other any member of the Controlled Group with
respect to a Pension Plan or a Multiemployer Pension Plan which could
reasonably be expected to have a Material Adverse Effect.  Neither the Company nor any other member of
the Controlled Group has engaged in any prohibited transaction (as defined in
Section 4975 of the Code or Section 406 of ERISA) in connection with any
Pension Plan or Multiemployer Pension Plan which would subject that Person to
any material liability.  Within the past
five years, neither the Company nor any other member of the Controlled Group has
engaged in a transaction which resulted in a Pension Plan with an Unfunded
Liability being transferred out of the Controlled Group, which could reasonably
be expected to have a Material Adverse Effect. 
No Termination Event has occurred or is reasonably expected to occur
with respect to any Pension Plan, which could reasonably be expected to have a
Material Adverse Effect.

(b)           All contributions
(if any) have been made to any Multiemployer Pension Plan that are required to
be made by the Company or any other member of the Controlled Group under the
terms of the plan or of any collective bargaining agreement or by applicable
law; neither the Company nor any other member of the Controlled Group has
withdrawn or partially withdrawn from any Multiemployer Pension Plan, incurred
any withdrawal liability with respect to any such plan or received notice of
any claim or demand for withdrawal liability or partial withdrawal liability
from any such plan, and no condition has occurred which, if continued, could
result in a withdrawal or partial withdrawal from any such plan; and neither
the Company nor any other member of the Controlled Group has received any
notice that any Multiemployer Pension Plan is in reorganization, that increased
contributions may be required to avoid a reduction in plan benefits or the
imposition of any excise tax, that any such plan is or has been funded at a
rate less than that required under Section 412 of the Code, that any such plan
is or may be terminated, or that any such plan is or may become insolvent.

9.10         Investment Company
Act.  No Loan Party is an “investment
company” or a company “controlled” by an “investment company” or a “subsidiary”
of an “investment company,” within the meaning of the Investment Company Act of
1940.

9.11         Regulation U.  The Company is not engaged principally, or as
one of its important activities, in the business of extending credit for the
purpose of purchasing or carrying Margin Stock.

 36
 

 

9.12         Taxes.  Each Loan Party has timely filed all tax
returns and reports required by law to have been filed by it and has paid all
taxes and governmental charges due and payable with respect to such return,
except any such taxes or charges which are being diligently contested in good
faith by appropriate proceedings and for which adequate reserves in accordance
with GAAP shall have been set aside on its books.  The Loan Parties have made adequate reserves
on their books and records in accordance with GAAP for all taxes that have
accrued but which are not yet due and payable.

9.13         Solvency, etc.  On the Closing Date, and immediately prior to
and after giving effect to the issuance of each Letter of Credit and each
borrowing hereunder and the use of the proceeds thereof, with respect to each
Loan Party, individually, (a) the fair value of its assets is greater than the amount
of its liabilities (including disputed, contingent and unliquidated
liabilities) as such value is established and liabilities evaluated in
accordance with GAAP, (b) the present fair saleable value of its assets is not
less than the amount that will be required to pay the probable liability on its
debts as they become absolute and matured, (c) it is able to realize upon its
assets and pay its debts and other liabilities (including disputed, contingent
and unliquidated liabilities) as they mature in the normal course of business,
(d) it does not intend to, and does not believe that it will, incur debts or
liabilities beyond its ability to pay as such debts and liabilities mature and
(e) it is not engaged in business or a transaction, and is not about to engage
in business or a transaction, for which its property would constitute
unreasonably small capital.

9.14         Environmental
Matters.  The on-going operations of
each Loan Party comply in all respects with all Environmental Laws, except such
non-compliance which could not (if enforced in accordance with applicable law)
reasonably be expected to result, either individually or in the aggregate, in a
Material Adverse Effect.  Each Loan Party
has obtained, and maintained in good standing, all licenses, permits,
authorizations, registrations and other approvals required under any
Environmental Law and required for their respective ordinary course operations,
and for their reasonably anticipated future operations, and each Loan Party is
in compliance with all terms and conditions thereof, except where the failure
to do so could not reasonably be expected to result in material liability to
any Loan Party and could not reasonably be expected to result, either
individually or in the aggregate, in a Material Adverse Effect.  No Loan Party or any of its properties or
operations is subject to, or reasonably anticipates the issuance of, any
written order from or agreement with any Federal, state or local governmental
authority, nor subject to any judicial or docketed administrative or other
proceeding, respecting any Environmental Law, Environmental Claim or Hazardous
Substance.  There are no Hazardous
Substances or other conditions or circumstances existing with respect to any
property, arising from operations prior to the Closing Date, or relating to any
waste disposal, of any Loan Party that would reasonably be expected to result,
either individually or in the aggregate, in a Material Adverse Effect.  No Loan Party has any underground storage
tanks that are not properly registered or permitted under applicable
Environmental Laws or that at any time have released, leaked, disposed of or
otherwise discharged Hazardous Substances.

9.15         Insurance.  Set forth on Schedule 9.15 is a
complete and accurate summary of the property and casualty insurance program of
the Loan Parties as of the Closing Date (including the names of all insurers,
policy numbers, expiration dates, amounts and types of coverage, annual
premiums, exclusions, deductibles, self-insured retention, and a description in
reasonable detail of any self-insurance program, retrospective rating plan,
fronting arrangement or other risk assumption arrangement involving any Loan
Party).  Each Loan Party and its
properties are insured with financially sound and reputable insurance companies
which are not Affiliates of the Loan Parties, in such amounts, with such
deductibles and covering such risks as are customarily carried by companies
engaged in similar businesses and owning similar properties in localities where
such Loan Parties operate.

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9.16         Information.  All information heretofore or
contemporaneously herewith furnished in writing by any Loan Party to the
Administrative Agent or any Lender for purposes of or in connection with this
Agreement and the transactions contemplated hereby is, and all written
information hereafter furnished by or on behalf of any Loan Party to the
Administrative Agent or any Lender pursuant hereto or in connection herewith
will be, true and accurate in every material respect on the date as of which
such information is dated or certified, and none of such information is or will
be incomplete by omitting to state any material fact necessary to make such
information not misleading in light of the circumstances under which made (it
being recognized by the Administrative Agent and the Lenders that any
projections and forecasts provided by the Company are based on good faith
estimates and assumptions believed by the Company to be reasonable as of the
date of the applicable projections or assumptions and that actual results
during the period or periods covered by any such projections and forecasts may
differ from projected or forecasted results).

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

9.18         Burdensome
Obligations.  No Loan Party is a
party to any agreement or contract or subject to any restriction contained in
its organizational documents which could reasonably be expected to have a
Material Adverse Effect.

9.19         Labor Matters.  Except as set forth on Schedule 9.19,
no Loan Party is subject to any labor or 
collective bargaining agreement. 
There are no existing or threatened strikes, lockouts or other labor
disputes involving any Loan Party that singly or in the aggregate could
reasonably be expected to have a Material Adverse Effect.  Hours worked by and payment made to employees
of the Loan Parties are in compliance with the Fair Labor Standards Act and
each other applicable law, rule or regulation dealing with such matters, except
where such non-compliance could not reasonably be expected to have a Material
Adverse Effect.

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

SECTION 10          AFFIRMATIVE
COVENANTS.

Until the expiration or termination of the Commitments and thereafter
until all Obligations hereunder and under the other Loan Documents are paid in
full and all Letters of Credit have been terminated, the Company agrees that,
unless at any time the Required Lenders shall otherwise expressly consent in
writing, it will:

10.1         Reports,
Certificates and Other Information. 
Furnish to the Administrative Agent and each Lender:

10.1.1      Annual Report.  Promptly when available and in any event
within 90 days after the close of each Fiscal Year: (a) a copy of the annual
audit report of Parent and its Subsidiaries for such Fiscal Year, including
therein consolidated balance sheets and statements of earnings and cash flows
of Parent and its Subsidiaries as at the end of such Fiscal Year,  certified without adverse reference to going
concern value and without qualification by independent auditors of recognized
standing selected by

 38
 

 

Parent and reasonably acceptable to the Administrative Agent, together
with (i) a written statement from such accountants to the effect that in making
the examination necessary for the signing of such annual audit report by such accountants,
nothing came to their attention that caused them to believe that Parent was not
in compliance with any provision of Section 11.12 of this Agreement
insofar as such provision relates to accounting matters or, if something has
come to their attention that caused them to believe that Parent was not in
compliance with any such provision, describing such non-compliance in
reasonable detail and (ii) a comparison with the budget for such Fiscal Year
and a comparison with the previous Fiscal Year; and (b) a consolidating balance
sheet of Parent and its Subsidiaries as of the end of such Fiscal Year and
consolidating statement of earnings and cash flows for Parent and its
Subsidiaries for such Fiscal Year, certified by a Senior Officer of Parent.

10.1.2      Quarterly Reports.  Promptly when available and in any event
within 45 days after the end of each Fiscal Quarter (except the last Fiscal
Quarter of each Fiscal Year), consolidated and consolidating balance sheets of
Parent and its Subsidiaries as of the end of such Fiscal Quarter, together with
consolidated and consolidating statements of earnings and cash flows for such
Fiscal Quarter and for the period beginning with the first day of such Fiscal
Year and ending on the last day of such Fiscal Quarter and a comparison with
results for the same period in the previous Fiscal Year, certified by a Senior
Officer of Parent.

10.1.3      Compliance
Certificates.  Contemporaneously with
the furnishing of a copy of each annual audit report pursuant to Section
10.1.1 and each set of quarterly statements pursuant to Section 10.1.2,
a duly completed compliance certificate in the form of Exhibit B, with
appropriate insertions, dated the date of such annual report or such quarterly
statements and signed by a Senior Officer of Parent, containing (i) a
computation of each of the financial ratios and restrictions set forth in Section
11.12 and to the effect that such officer has not become aware of any Event
of Default or Unmatured Event of Default that has occurred and is continuing
or, if there is any such event, describing it and the steps, if any, being
taken to cure it and (ii) a written statement of Parent’s management setting
forth a discussion of Parent’s consolidated financial condition, changes in
financial condition and results of operations.

10.1.4      Reports to the SEC
and to Shareholders.  Promptly upon
the filing or sending thereof, copies of all regular, periodic or special
reports of any Loan Party filed with the SEC; copies of all registration
statements of any Loan Party filed with the SEC (other than on Form S-8); and
copies of all proxy statements or other communications made to security holders
generally.

10.1.5      Notice of Default,
Litigation and ERISA Matters. 
Promptly upon becoming aware of any of the following, written notice
describing the same and the steps being taken by Loan Party affected thereby
with respect thereto:

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

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

(c)           the institution of any steps by any
member of the Controlled Group or any other Person to terminate any Pension
Plan, or the failure of any member of the Controlled Group to make a required
contribution to any Pension Plan (if such failure is sufficient to give rise to
a

 39
 

 

Lien under Section 302(f) of ERISA) or to any
Multiemployer Pension Plan, or the taking of any action with respect to a
Pension Plan which could result in the requirement that the Company furnish a
bond or other security to the PBGC or such Pension Plan, or the occurrence of
any event with respect to any Pension Plan or Multiemployer Pension Plan which
could result in the incurrence by any member of the Controlled Group of any
material liability, fine or penalty (including any claim or demand for
withdrawal liability or partial withdrawal from any Multiemployer Pension
Plan), or any material increase in a Contingent Liability of the Company with
respect to any post-retirement welfare benefit plan or other employee benefit
plan of the Company or another member of the Controlled Group, or any notice
that any Multiemployer Pension Plan is in reorganization, that increased
contributions may be required to avoid a reduction in plan benefits or the
imposition of an excise tax, that any such plan is or has been funded at a rate
less than that required under Section 412 of the Code, that any such plan is or
may be terminated, or that any such plan is or may become insolvent;

(d)           any cancellation or material reduction
in any insurance maintained by any Loan Party; or

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

10.1.6      Management Reports.  Promptly upon receipt thereof, copies of all
detailed financial and management reports submitted to Parent by independent
auditors in connection with each annual or interim audit made by such auditors
of the books of Parent.

10.1.7      Projections.  As soon as practicable, and in any event not
later than 30 days after the end of each Fiscal Year, financial projections for
Parent and its Subsidiaries for the next Fiscal Year (including monthly
operating and cash flow budgets) prepared in a manner consistent with the
projections delivered by the Company to the Lenders prior to the Closing Date
or otherwise in a manner reasonably satisfactory to the Administrative Agent,
accompanied by a certificate of a Senior Officer of Parent on behalf of Parent
to the effect that (a) such projections were prepared by Parent in good faith,
(b) Parent has a reasonable basis for the assumptions contained in such
projections and (c) such projections have been prepared in accordance with such
assumptions.

10.1.8      Notices With
Respect to Other Debt.  Promptly
following receipt, copies of any notices (including notices of default or
acceleration) received from any holder or trustee of, under or with respect to
any Subordinated Debt or any convertible debt.

10.1.9            Other
Information.  Promptly from time to
time, such other information concerning the Loan Parties as any Lender or the
Administrative Agent may reasonably request.

10.2         Books, Records and
Inspections.  Keep, and cause each
other Loan Party to keep, its books and records in accordance with sound
business practices sufficient to allow the preparation of financial statements
in accordance with GAAP; permit, and cause each other Loan Party to permit, any
Lender or the Administrative Agent or any representative thereof to inspect the
properties and operations of the Loan Parties; and permit, and cause each other
Loan Party to permit, at any reasonable time and with reasonable notice (or at
any time without notice if an Event of Default exists), any Lender or the
Administrative Agent or any representative thereof to visit any or all of its
offices, to discuss its financial matters with its officers and its independent
auditors (and the Company hereby authorizes such

 40
 

 

independent auditors to discuss such financial matters with any Lender
or the Administrative Agent or any representative thereof), and to examine
(and, at the expense of the Loan Parties, photocopy extracts from) any of its
books or other records; and permit, and cause each other Loan Party to permit,
the Administrative Agent and its representatives to inspect the facilities of
the Loan Parties, to perform appraisals of the equipment of the Loan Parties,
and to inspect, audit, check and make copies of and extracts from the books,
records, computer data, computer programs, journals, orders, receipts,
correspondence and other data relating to the assets of the Loan Parties.  All such inspections or audits by the
Administrative Agent shall be at the Company’s expense, provided that so
long as no Event of Default or Unmatured Event of Default exists, the Company
shall not be required to reimburse the Administrative Agent for inspections or
audits more frequently than once each Fiscal Year.

10.3         Maintenance of
Property; Insurance.  (a)  Keep, and cause each other Loan Party to
keep, all property useful and necessary in the business of the Loan Parties in
good working order and condition, ordinary wear and tear excepted.

(b)           Maintain, and cause
each other Loan Party to maintain, with responsible insurance companies, such
insurance coverage as may be required by any law or governmental regulation or
court decree or order applicable to it and such other insurance, to such extent
and against such hazards and liabilities, as is customarily maintained by
companies similarly situated, but which shall insure against all risks and
liabilities of the type identified on Schedule 9.15 and shall have
insured amounts no less than, and deductibles no higher than, those set forth
on such schedule; and, upon request of the Administrative Agent or any Lender,
furnish to the Administrative Agent or such Lender a certificate setting forth
in reasonable detail the nature and extent of all insurance maintained by the
Loan Parties.  The Company shall cause
each issuer of an insurance policy to provide the Administrative Agent with an
endorsement (i) naming the Administrative Agent as an additional insured with
respect to each policy of general and umbrella liability insurance and (ii)
providing that 30 days’ notice will be given to the Administrative Agent prior
to any cancellation of,  any material
reduction in coverage provided by or any other material modification to such
policy.

(c)           The Company shall
maintain at all times a key man life insurance policy on the life of David
Teece in an amount equal to $5,000,000, in form and substance and with a life
insurance company satisfactory to the Administrative Agent.

10.4         Compliance with
Laws; Payment of Taxes and Liabilities. 
(a)  Comply, and cause each other
Loan Party to comply, in all material respects with all applicable laws, rules,
regulations, decrees, orders, judgments, licenses and permits, except where
failure to comply could not reasonably be expected to have a Material Adverse
Effect; (b) without limiting clause (a) above, ensure, and cause each
other Loan Party to ensure, that no person who owns a controlling interest in
or otherwise controls a Loan Party is or shall be (i) listed on the Specially
Designated Nationals and Blocked Person List maintained by the Office of
Foreign Assets Control (“OFAC”), Department of the Treasury, and/or any
other similar lists maintained by OFAC pursuant to any authorizing statute,
Executive Order or regulation or (ii) a person designated under Section 1(b),
(c) or (d) of Executive Order No. 13224 (September 23, 2001), any related
enabling legislation or any other similar Executive Orders, (c) without
limiting clause (a) above, comply, and cause each other Loan Party to
comply, with all applicable Bank Secrecy Act (“BSA”) and anti-money
laundering laws and regulations and (d) pay, and cause each other Loan Party to
pay, prior to delinquency, all taxes and other governmental charges against it
or any collateral, as well as claims of any kind which, if unpaid, could become
a Lien on any of its property; provided that the foregoing shall not
require any Loan Party to pay any such tax or charge so long as it shall
contest the validity thereof in

 41
 

 

good faith by appropriate proceedings and shall set aside on its books
adequate reserves with respect thereto in accordance with GAAP.

10.5         Maintenance of
Existence, etc.  Maintain and
preserve, and (subject to Section 11.4) cause each other Loan Party
to maintain and preserve, (a) its existence and good standing in the
jurisdiction of its organization and (b) its qualification to do business and
good standing in each jurisdiction where the nature of its business makes such
qualification necessary (other than such jurisdictions in which the failure to be
qualified or in good standing could not reasonably be expected to have a
Material Adverse Effect).

10.6         Use of Proceeds.  Use the proceeds of the Loans, and the
Letters of Credit, solely for working capital purposes, for Acquisitions
permitted by Section 11.4, for Capital Expenditures and for other
general business purposes; and not use or permit any proceeds of any Loan to be
used, either directly or indirectly, for the purpose, whether immediate,
incidental or ultimate, of “purchasing or carrying” any Margin Stock.

10.7         Employee Benefit
Plans.

(a)           Maintain, and cause
each other member of the Controlled Group to maintain, each Pension Plan in
substantial compliance with all applicable requirements of law and regulations.

(b)           Make, and cause each
other member of the Controlled Group to make, on a timely basis, all required
contributions to any Multiemployer Pension Plan.

(c)           Not, and not permit
any other member of the Controlled Group to (i) seek a waiver of the minimum
funding standards of ERISA, (ii) terminate or withdraw from any Pension Plan or
Multiemployer Pension Plan or (iii) take any other action with respect to any
Pension Plan that would reasonably be expected to entitle the PBGC to
terminate, impose liability in respect of, or cause a trustee to be appointed
to administer, any Pension Plan, unless the actions or events described in
clauses (i), (ii) and (iii) individually or in the aggregate would not have a
Material Adverse Effect.

10.8         Environmental
Matters.  The Company shall, and
shall cause each other Loan Party to, comply with in all material respects with
all applicable Environmental Laws.

10.9         Further Assurances.  Take, and cause each other Loan Party to
take, such actions as are necessary or as the Administrative Agent or the
Required Lenders may reasonably request from time to time to ensure that the
Obligations of each Loan Party under the Loan Documents are guaranteed by each
domestic Subsidiary (including, upon the acquisition or creation thereof, any
Subsidiary acquired or created after the Closing Date), in each case as the
Administrative Agent may determine, including the execution and delivery of
guaranties and other documents.

SECTION 11          NEGATIVE COVENANTS

Until the expiration or termination of the Commitments
and thereafter until all Obligations hereunder and under the other Loan
Documents are paid in full and all Letters of Credit have been terminated, the
Company agrees that, unless at any time the Required Lenders shall otherwise
expressly consent in writing, it will:

 42

 

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

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

(b)           Debt incurred or
assumed after the Closing Date which is secured by Liens permitted by Section
11.2(d), and extensions, renewals and refinancings thereof; provided,
that the aggregate amount of all such Debt at any time outstanding shall not
exceed two percent (2.0%) of Parent’s consolidated revenues as of the previous
four Fiscal Quarters;

(c)           Debt of the Parent or
Company to any Wholly-Owned Subsidiary or Debt of any Wholly-Owned Subsidiary
to the Company, the Parent or another Wholly-Owned Subsidiary; provided
that (i) the sum of (A) the aggregate principal amount outstanding of any such
Debt owed by a foreign Subsidiary and (B) the aggregate Investments made after
the date hereof by the Company or any domestic Subsidiary to any foreign
Subsidiary (excluding in each case Investments the proceeds of which are used
exclusively to effect an Acquisition pursuant to Section 11.4 or to pay
a Signing and Performance Bonus pursuant to Section 11.13) shall not
exceed $10,000,000, and (ii) any such Debt owed by a foreign Subsidiary shall
be evidenced by a demand note in form and substance reasonably satisfactory to
the Administrative Agent which has been pledged to the Administrative Agent in
accordance with the terms of the Guaranty and Pledge Agreement;

(d)           Hedging Obligations
incurred in favor of a Lender or an Affiliate thereof for bona fide hedging
purposes and not for speculation;

(e)           Debt described on Schedule
11.1 and any extension, renewal or refinancing thereof so long as the
principal amount thereof is not increased;

(f)            Suretyship Liabilities
arising with respect to customary indemnification obligations in favor of
sellers and assumptions of obligations (other than Acquired Debt) in connection
with Acquisitions permitted under Section 11.4 and purchasers in
connection with Dispositions permitted under Section 11.4;

(g)           up to $2,000,000 in the
aggregate of (i) Acquired Debt assumed in Acquisitions permitted under Section
11.4 and (ii) Debt secured by property acquired by a Loan Party and assumed
by such Loan Party in transactions which do not constitute Acquisitions;

(h)           convertible Debt issued
by Parent, so long as (i) the stated maturity of such Debt shall be a date not
earlier than six months after the stated maturity date of the Loans as of the
date of issuance, (ii) no mandatory redemption requirements prior to maturity other
than upon a Change of Control or pursuant to other customary event risk
features, (iii) no Unmatured Event of Default or Event of Default shall have
occurred and be continuing either immediately before or immediately after such
issuance, after giving effect to the intended use of proceeds of such
convertible Debt, with evidence that the Company is in pro forma compliance
with all the financial ratios and restrictions set forth in Section 11.12
on the date of measurement, and (iv) the restrictive covenants and events of
default relating to such Debt are generally no more restrictive than those set
forth in the Credit Agreement (it being
understood and agreed that Debt that has (A) no financial covenants, (B) no
restrictive covenants with respect to incurrence, existence or making of liens,
indebtedness or restricted payments and (C) dollar thresholds with respect to
any

 43
 

 

events of default as a result of judgments and
defaults under other indebtedness no lower than those provided for in this
Agreement for such categories of defaults, will satisfy the requirements of
this clause (iv));

(i)             Suretyship
Liabilities with respect to (A) Debt otherwise permitted under this Section
11.1, and (B) Debt of Persons other than Loan Parties that would be
permitted under this Section 11.1 if such Person were a Loan Party, but
only to the extent (i) within the limitations set forth in this Section 11.1
and (ii) that one or more Loan Parties derive, directly or indirectly,
substantial business or finance benefits therefrom, and such Debt of other
Persons shall count against such limitations;

(j)           Suretyship Liabilities
that constitute Investments permitted under Section 11.10 (unless only
permitted by clause (b) of Section 11.10); and

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

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

(a)           Liens for taxes or
other governmental charges not at the time delinquent or thereafter payable
without penalty or being contested in good faith by appropriate proceedings
and, in each case, for which it maintains adequate reserves;

(b)           Liens arising in the
Ordinary Course of Business (such as (i) Liens of carriers, warehousemen,
mechanics and materialmen and other similar Liens imposed by law and (ii) Liens
in the form of deposits or pledges incurred in connection with worker’s
compensation, unemployment compensation and other types of social security
(excluding Liens arising under ERISA) or in connection with surety bonds, bids,
performance bonds and similar obligations) for sums not overdue or being contested
in good faith by appropriate proceedings and not involving any advances or
borrowed money or the deferred purchase price of property or services and, in
each case, for which it maintains adequate reserves;

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

(d)           subject to the
limitation set forth in Section 11.1(b), (i) Liens arising in connection
with Capital Leases (and attaching only to the property being leased), and
(ii)  Liens that constitute purchase money security interests on any
property securing debt incurred for the purpose of financing all or any part of
the cost of acquiring such property, provided that any such Lien
attaches to such property within 20 days of the acquisition thereof and
attaches solely to the property so acquired;

(e)           attachments, judgment
liens and other similar Liens, for sums not exceeding $500,000 arising in
connection with court proceedings, provided that the execution or other
enforcement of such Liens is effectively stayed and the claims secured thereby
are being actively contested in good faith and by appropriate proceedings;

 44
 

 

(f)            subject to the
limitation set forth in Section 11.1(g), Liens existing on property at
the time of the acquisition thereof by any Loan Party (and not created in
contemplation of such acquisition);

(g)           easements, rights of
way, restrictions, minor defects or irregularities in title and other similar
Liens not interfering in any material respect with the ordinary conduct of the
business of any Loan Party;

(h)          Liens in favor of an
indenture trustee securing its fees and expenses and reimbursement,
indemnification and similar rights under an indenture, in connection with the
issuance of Debt pursuant to Section 11.1(h) to the extent customary in
connection with convertible debt issuances; and

(i)            Liens securing other
obligations of the Loan Parties in an amount not to exceed $500,000 at any one
time outstanding; and

11.3         Restricted Payments. 
Not, and not permit any other Loan Party to, (a) make any distribution
to any holders of its Capital Securities, (b) purchase or redeem any of its
Capital Securities, (c) pay any management fees or similar fees to any of its
equityholders or any Affiliate thereof, (d) make any redemption, prepayment,
defeasance, repurchase or any other payment in respect of any Subordinated Debt
or (e) set aside funds for any of the foregoing.  Notwithstanding the foregoing, (i) any of the
foregoing transactions may be entered into between Parent, the Company and any
of Company’s Wholly-Owned domestic Subsidiaries and any other such Loan Party,
(ii) any of the actions identified in the foregoing clauses (a), (b) (d) and
(e) shall be permitted to the extent such Restricted Payment is made solely in
the form of Capital Securities of the Parent, and (iii) so long as no Event of
Default or Unmatured Event of Default exists or would result therefrom, one or
more of the Loan Parties may purchase up to $40,000,000 of Parent’s
Capital Securities in the aggregate after the date hereof.

11.4         Mergers,
Consolidations, Sales.  Not, and not
permit any other Loan Party to, (a) be a party to any merger or consolidation,
or purchase or otherwise acquire all or substantially all of the assets or any
Capital Securities of any class of, or any partnership or joint venture
interest in, any other Person or all or substantially all of any business or
division of any Person, (b) make any Asset Disposition, or (c) sell or assign
with or without recourse any receivables (except in connection with the
departure of a consultant), except for (i) any such merger, consolidation,
sale, transfer, conveyance, lease or assignment of or by any Wholly-Owned
Subsidiary into the Company or into any other domestic Wholly-Owned Subsidiary,
(ii) any such purchase or other acquisition by the Company or any domestic
Wholly-Owned Subsidiary of the assets or Capital Securities of any Wholly-Owned
Subsidiary, (iii) the Disposition of any asset which is to be replaced, and is
in fact replaced, within 30 days with another asset performing the same or a
similar function, (iv) the release by any Loan Party of a departing employee
from a non-compete agreement in exchange for a payment from such employee’s new
employer, (v) Asset Dispositions (including mergers and consolidations which
effect Asset Dispositions) for at least fair market value (as determined by the
Board of Directors of the Company) so long as (x) the net book value of all
assets sold or otherwise disposed of in any Fiscal Year does not exceed 10% of
the net book value of the consolidated assets of the Loan Parties as of the
last day of the preceding Fiscal Year, and (y) the revenues generated by such
assets do not exceed 10% of Parent’s consolidated revenues as of the prior
Fiscal Year, and (vi) any Acquisition (including any merger or consolidation
which effects an Acquisition) by the Company or any Wholly-Owned Subsidiary
where:

 45
 

 

(A)          the
business or division acquired are for use, or the Person acquired is engaged,
in the businesses engaged in by the Loan Parties on the Closing Date;

(B)           immediately
before and after giving effect to such Acquisition, no Event of Default or
Unmatured Event of Default shall exist;

(C)           the
aggregate consideration to be paid by the Loan Parties (including any Debt
assumed or issued in connection therewith, the amount thereof to be calculated
in accordance with GAAP but excluding any consideration paid in the form of
Capital Securities of any Loan Party) in connection with such Acquisition (or
any series of related Acquisitions), together with all other Acquisitions
consummated in the last twelve months, is less than 150% of the Company’s
consolidated EBITDA during such period;

(D)          immediately
after giving effect to such Acquisition, the Company is in pro forma compliance
with all the financial ratios and restrictions set forth in Section 11.12;

(E)           in
the case of the Acquisition of any Person, the board of directors or similar
governing body of such Person has approved such Acquisition;

(F)           no
more than 30 days after the closing of such Acquisition, the Administrative
Agent shall have received complete executed or conformed copies of each
material document, instrument and agreement to be executed in connection with
such Acquisition together with all lien search reports and lien release letters
and other documents as the Administrative Agent may require to evidence the
termination of Liens on the assets or business to be acquired;

(G)           no
more than 30 days after the closing of such Acquisition, the Administrative
Agent shall have received an acquisition summary with respect to the Person
and/or business or division to be acquired, such summary to include a
reasonably detailed description thereof (including financial information) and
operating results (including financial statements for the most recent 12 month
period for which they are available and as otherwise available), the terms and
conditions, including economic terms, of the proposed Acquisition, and the
Company’s calculation of pro forma EBITDA relating thereto;

(H)          if
the target of such Acquisition is a Person or a business/division of a Person
organized under the laws of a jurisdiction other than the United States or any
political subdivision thereof, then (1) such Person must be organized under the
laws of China, India or one of the member countries of the Organisation for Economic
Co-operation and Development, and (2) at least 60% of Parent’s consolidated
revenues for the previous four full Fiscal Quarters must have been generated by
Parent and its domestic Subsidiaries, as determined on a pro forma basis after
giving effect to such proposed Acquisition;

(I)            if
the aggregate consideration to be paid in connection with any Acquisition
(determined in accordance with clause (C) above) is in excess of $5,000,000,
then the target must have positive EBIT in the most recent 12 month period;

(J)            after
giving effect to each Acquisition, the Revolving Commitment must exceed the sum
of Revolving Outstandings plus outstandings under the Swing Line by at least
$15,000,000;

(K)          the
provisions of Section 10.7 have been satisfied;

 46
 

 

(L)           simultaneously
with the closing of such Acquisition, the target company (if such Acquisition
is structured as a purchase of equity and the target company becomes a domestic
Subsidiary) executes and delivers to Administrative Agent a joinder to the
Guaranty and Pledge Agreement, or at the option of Administrative Agent, in
Administrative Agent’s absolute discretion, a joinder agreement satisfactory to
Administrative Agent in which such target company or surviving company, and
their respective Subsidiaries becomes a borrower under this Agreement and
assumes primary, joint and several liability for the Obligations; and

(M)         if
the Acquisition is structured as a merger involving the Company, then the
Company is the surviving entity.

11.5         Modification
of Organizational Documents and Navigant Subordination Agreement.  Not permit (a) the charter, by-laws or other
organizational documents of any Loan Party to be amended or modified in any way
which could reasonably be expected to materially adversely affect the interests
of the Lenders or (b) the Navigant Subordination Agreement to be terminated or
to be amended or modified in any way which could reasonably be expected to
materially adversely affect the interests of the Lenders.

11.6         Transactions
with Affiliates.  Except (a) as set
forth on Schedule 11.6 hereto or (b) otherwise in the Ordinary Course of
Business, not, and not permit any other Loan Party to, enter into, or cause,
suffer or permit to exist any transaction, arrangement or contract with any of
its other Affiliates (other than the Loan Parties) which is on terms which are
less favorable than are obtainable from any Person which is not one of its
Affiliates.

11.7         Unconditional
Purchase Obligations.  Not, and not
permit any other Loan Party to, enter into or be a party to any contract for
the purchase of materials, supplies or other property or services if such
contract requires that payment be made by it regardless of whether delivery is
ever made of such materials, supplies or other property or services.

11.8         Inconsistent
Agreements.  Not, and not permit any
other Loan Party to, enter into any agreement containing any provision which
would (a) be violated or breached by any borrowing by the Company hereunder or
by the performance by any Loan Party of any of its Obligations hereunder or
under any other Loan Document, (b) prohibit any Loan Party from granting to the
Administrative Agent and the Lenders, a Lien on any of its assets or (c) create
or permit to exist or become effective any encumbrance or restriction on the ability
of any Subsidiary to (i) pay dividends or make other distributions to the
Company or any other Subsidiary, or pay any Debt owed to the Company or any
other Subsidiary, (ii) make loans or advances to any Loan Party or (iii)
transfer any of its assets or properties to any Loan Party, other than (A)
customary restrictions and conditions contained in agreements relating to the
sale of all or a substantial part of the assets of any Subsidiary pending such
sale, provided that such restrictions and conditions apply only to the
Subsidiary to be sold and such sale is permitted hereunder
(B) restrictions or conditions imposed by any agreement relating to
purchase money Debt, Capital Leases and other secured Debt permitted by this
Agreement if such restrictions or conditions apply only to the property or
assets securing such Debt, (C) customary provisions in leases and other
contracts restricting the assignment thereof, and (D) restrictions on mergers, consolidations and transfers, sales
and leases of all or substantially all the assets of a Person of a type
customarily included in indentures with respect to convertible debt securities.

11.9         Business
Activities.  Not, and not permit any
other Loan Party to, engage in any line of business other than the businesses
engaged in on the date hereof and businesses reasonably related thereto.

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

(a)           Investments by Parent,
the Company or any Subsidiary in Parent, the Company or any Wholly-Owned
Subsidiary, so long as the sum of (i) the aggregate principal amount
outstanding of any Debt incurred by a foreign Subsidiary pursuant to Section
11.1(c) and (ii) the aggregate of such Investments made after the date
hereof by the Company or any domestic Subsidiary in any foreign Subsidiary
(excluding in each case Investments the proceeds of which are used exclusively
to effect an Acquisition pursuant to Section 11.4 or to pay a Signing
and Performance Bonus pursuant to Section 11.13) shall not exceed
$10,000,000;

(b)           Investments
constituting Debt permitted by Section 11.1;

(c)           Suretyship Liabilities
constituting Debt permitted by Section 11.1 or Liens permitted by Section
11.2;

(d)           Cash Equivalent
Investments;

(e)           bank deposits and
endorsements in the ordinary course of business;

(f)            Investments in
securities of account debtors received pursuant to any plan of reorganization
or similar arrangement upon the bankruptcy or insolvency of such account
debtors or received in settlement of
delinquent accounts;

(g)           Suretyship Liabilities under or with respect to employee benefit plans,
employment agreements and similar arrangements in the Ordinary Course of
Business;

(h)           Indemnity, hold harmless, contribution, expense reimbursement and
similar obligations that are unrelated to financing transactions or credit
support arrangements or, if so related, are incidental thereto;

(i)            Suretyship Liabilities
arising by operation of law in the Ordinary Course of Business;

(j)            Investments to
consummate Acquisitions permitted by Section 11.4;

(k)           Investments listed on Schedule
11.10 as of the Closing Date; and

(l)            other Investments, in
addition to the Investments listed above in an aggregate outstanding amount not
at any time exceeding $2,000,000;

provided that (x) any Investment which when made complies with
the requirements of the definition of the term “Cash Equivalent Investment”
may continue to be held notwithstanding that such Investment if made thereafter
would not comply with such requirements; (y) no Investment otherwise permitted
by clause (b), (c), or (g) shall be permitted to be made
if, immediately before or after giving effect thereto, any Event of Default or
Unmatured Event of Default exists.

11.11       Fiscal
Year.  Not change its Fiscal Year.

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11.12       Financial
Covenants.

11.12.1    Total
Net Leverage Ratio.  Not permit the
Total Net Leverage Ratio as of the last day of any Computation Period to exceed
3.0  to 1.0.

11.12.2    Fixed
Charge Coverage Ratio.  Not permit the
Fixed Charge Coverage Ratio as of the last day of any Computation Period to be
less than 2.0 to 1.0.

11.13       Signing
and Performance Bonuses.  Not, and
not permit any other Loan Party to, pay any Signing and Performance Bonus
unless (i) such Signing and Performance Bonus is paid in accordance with the
terms of an agreement in effect on the Closing Date, as such agreement is in
effect on the Closing Date, or (ii) such Signing and Performance Bonus is being
paid pursuant to the terms of any other agreement and (x) the aggregate amount
of all such Signing and Performance Bonuses paid in the most recent 12 month
period does not exceed 50% of EBITDA for such 12 month period, (y) no Unmatured
Event of Default or Event of Default would occur after giving pro forma effect
to the payment of such Signing and Performance Bonus and (z) the conditions
specified in clauses (D) and (J) of Section 11.4(c)(vi) shall have been
satisfied.

SECTION 12          EFFECTIVENESS;
CONDITIONS OF LENDING, ETC.

The obligation of each
Lender to make its Loans and of each Issuing Lender to issue Letters of Credit
is subject to the following conditions precedent:

12.1         Initial Credit
Extension.  The obligation of the
Lenders to make the initial Loans and the obligation of the Issuing Lender to
issue its initial Letter of Credit (whichever first occurs) is, in addition to
the conditions precedent specified in Section 12.2, subject to the
conditions precedent that (a) all Liens securing the Company’s obligations
under the Existing Credit Agreement have been (or concurrently with the initial
borrowing will be) terminated and (b) the Administrative Agent shall have
received all of the following, each duly executed and dated the Closing Date
(or such earlier date as shall be satisfactory to the Administrative Agent), in
form and substance satisfactory to the Administrative Agent (and the date on
which all such conditions precedent have been satisfied or waived in writing by
the Administrative Agent and the Lenders is called the “Closing Date”):

12.1.1      Notes.  A Note for each Lender.

12.1.2      Authorization
Documents.  For each Loan Party
signatory to any Loan Document, such Person’s (a) charter (or similar formation
document), certified by the appropriate governmental authority; (b) good
standing certificates in its state of incorporation (or formation) and in each
other state requested by the Administrative Agent; (c) bylaws (or similar
governing document); (d) resolutions of its board of directors (or similar
governing body) approving and authorizing such Person’s execution, delivery and
performance of the Loan Documents to which it is party and the transactions
contemplated thereby; and (e) signature and incumbency certificates of its
officers executing any of the Loan Documents (it being understood that the Administrative
Agent and each Lender may conclusively rely on each such certificate until
formally advised by a like certificate of any changes therein), all certified
by its secretary or an assistant secretary (or similar officer) as being in
full force and effect without modification.

12.1.3      Consents,
etc.  Certified copies of all
documents evidencing any necessary corporate or partnership action,
consents and governmental approvals (if any) required for the execution,
delivery and performance by the Loan Parties of the documents referred to in
this Section 12.

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12.1.4      Letter
of Direction.  A letter of direction
containing funds flow information with respect to the proceeds of the Loans on
the Closing Date.

12.1.5      Guaranty
and Pledge Agreement.  A counterpart of
the Guaranty and Pledge Agreement executed by Parent, the Company and each
Domestic Subsidiary, together with all instruments, transfer powers and other
items required to be delivered in connection therewith.

12.1.6      Opinions
of Counsel.  Opinions of counsel for
each Loan Party, including local counsel reasonably requested by the
Administrative Agent.

12.1.7      Insurance.  Evidence of the existence of insurance
required to be maintained pursuant to Section 10.3(b), together with evidence that the
Administrative Agent has been named as an additional insured on all related
insurance policies.

12.1.8      Payment
of Fees.  Evidence of payment by the
Company of all accrued and unpaid fees, costs and expenses to the extent then
due and payable on the Closing Date, together with all Attorney Costs of the
Administrative Agent to the extent invoiced prior to the Closing Date, plus
such additional amounts of Attorney Costs as shall constitute the
Administrative Agent’s reasonable estimate of Attorney Costs incurred or to be
incurred by the Administrative Agent through the closing proceedings (provided
that such estimate shall not thereafter preclude final settling of accounts
between the Company and the Administrative Agent).

12.1.9      Solvency
Certificate.  A Solvency Certificate
executed by a Senior Officer of the Company.

12.1.10    Search
Results; Lien Terminations. 
Certified copies of Uniform Commercial Code search reports dated a date
reasonably near to the Closing Date, listing all effective financing statements
which name any Loan Party (under their present names and any previous names) as
debtors, together with (a) copies of such financing statements, (b) the release
of all Liens granted in connection with the Existing Credit Agreement, with
Uniform Commercial Code or other appropriate termination statements and
documents effective to evidence the foregoing (other than Liens permitted by Section
11.2) and (c) such other Uniform Commercial Code termination statements as
the Administrative Agent may reasonably request.

12.1.11    Closing
Certificate.  A certificate executed
by an officer of the Company on behalf of the Company certifying the matters
set forth in Section 12.2.1 as of the Closing Date.

12.2         Conditions.  The obligation (a) of each Lender to
make each Loan and (b) of the Issuing Lender to issue each Letter of
Credit is subject to the following further conditions precedent that:

12.2.1      Compliance
with Warranties, No Default, etc. 
Both before and after giving effect to any borrowing and the issuance of
any Letter of Credit, the following statements shall be true and correct:

(a)           the representations and
warranties of each Loan Party set forth in this Agreement and the other Loan
Documents shall be true and correct in all respects with the same effect as if
then made (except to the extent stated to relate to a specific earlier date, in
which case such representations and warranties shall be true and correct as of
such earlier date); and

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(b)           no Event of Default or
Unmatured Event of Default shall have then occurred and be continuing.

12.2.2      Confirmatory
Certificate.  If requested by the
Administrative Agent or any Lender, the Administrative Agent shall
have received (in sufficient counterparts to provide one to each Lender) a
certificate dated the date of such requested Loan or Letter of Credit and
signed by a duly authorized representative of the Company as to the matters set
out in Section 12.2.1 (it being understood that each request by the
Company for the making of a Loan or the issuance of a Letter of Credit shall be
deemed to constitute a representation and warranty by the Company that the
conditions precedent set forth in Section 12.2.1 will be satisfied at
the time of the making of such Loan or the issuance of such Letter of Credit),
together with such other documents as the Administrative Agent or any Lender
may reasonably request in support thereof.

SECTION 13          EVENTS OF DEFAULT AND
THEIR EFFECT.

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

13.1.1      Non-Payment
of the Loans, etc.  Default in the
payment when due of the principal of any Loan; or default, and continuance
thereof for five days, in the payment when due of any interest, fee,
reimbursement obligation with respect to any Letter of Credit or other amount
payable by the Company hereunder or under any other Loan Document.

13.1.2      Non-Payment
of Other Debt.  (a) Any default shall
occur under the terms applicable to any Debt of any Loan Party (including any
of the Obligations not referenced in Section 13.1.1, other than any Bank
Product Obligations which are not arising under Hedging Agreements) in an
aggregate amount (for all such Debt so affected and including undrawn committed
or available amounts and amounts owing to all creditors under any combined or syndicated
credit arrangement) exceeding $1,000,000 and such default shall (i) consist of
the failure to pay such Debt when due, whether by acceleration or otherwise, or
(ii) accelerate the maturity of such Debt or permit the holder or holders
thereof, or any trustee or agent for such holder or holders, to cause such Debt
to become due and payable (or require any Loan Party to purchase or redeem such
Debt or post cash collateral in respect thereof) prior to its expressed
maturity, or (ii) any other event shall occur in respect of any such Debt that
would accelerate the maturity of such Debt or permit the holder or holders
thereof, or any trustee or agent for such holder or holders, to cause such Debt
to become due and payable (or require any Loan Party to purchase or redeem such
Debt or post cash collateral in respect thereof) prior to its expressed
maturity.

13.1.3      Other
Material Obligations.  Default in the
payment when due, or in the performance or observance of, any material
obligation of, or condition agreed to by, any Loan Party with respect to any
material purchase or lease of goods or services where such default, singly or
in the aggregate with all other such defaults, might reasonably be expected to
have a Material Adverse Effect.

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

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bankruptcy or insolvency law, or any dissolution or liquidation proceeding,
is commenced in respect of any Loan Party, and if such case or proceeding is
not commenced by such Loan Party, it is consented to or acquiesced in by such
Loan Party, or remains for 60 days undismissed; or any Loan Party takes any
action to authorize, or in furtherance of, any of the foregoing.

13.1.5      Non-Compliance
with Loan Documents.  (a) Failure by
any Loan Party to comply with or to perform any covenant set forth in Section
10.1.5, 10.3(b) or 10.5 or Section 11; or (b) failure by
any Loan Party to comply with or to perform any other provision of this
Agreement or any other Loan Document (and not constituting an Event of Default
under any other provision of this Section 13) and continuance of such
failure described in this clause (b) for 30 days from the earlier of (i)
the date on which such Loan Party becomes aware of such failure and (ii) the
date on which the Company receives notice thereof from the Administrative
Agent.

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

13.1.7      Pension
Plans.  (a) Any Person
institutes steps to terminate a Pension Plan if as a result of such termination
the Company or any member of the Controlled Group could be required to make a
contribution to such Pension Plan, or could incur a liability or obligation to
such Pension Plan, in excess of $500,000; (b) a contribution failure occurs
with respect to any Pension Plan sufficient to give rise to a Lien under
Section 302(f) of ERISA; (c) the Unfunded Liability exceeds twenty percent
of the Total Plan Liability; or (d) there shall occur any withdrawal or
partial withdrawal from a Multiemployer Pension Plan and the withdrawal
liability (without unaccrued interest) to Multiemployer Pension Plans as a
result of such withdrawal (including any outstanding withdrawal liability that
the Company or any member of the Controlled Group have incurred on the date of
such withdrawal) exceeds $500,000.

13.1.8      Judgments.  Final judgments which exceed an aggregate of
$500,000 shall be rendered against any Loan Party and shall not have been paid,
discharged or vacated or had execution thereof stayed pending appeal within 30
days after entry or filing of such judgments.

13.1.9      Invalidity
of Guaranty and Pledge Agreement. 
The Guaranty and Pledge Agreement shall cease to be in full force and
effect; or any Loan Party (or any Person by, through or on behalf of any Loan
Party) shall contest in any manner the validity, binding nature or
enforceability of the Guaranty and Pledge Agreement.

13.1.10    Invalidity
of Subordination Provisions, etc. 
(a) Any subordination provision in any document or instrument governing
Subordinated Debt, or any subordination provision in any guaranty by any
Subsidiary of any Subordinated Debt, shall cease to be in full force and
effect, or any Loan Party or any other Person which is an Affiliate of a Loan
Party shall contest in any manner the validity, binding nature or
enforceability of any such provision, or (b) any subordination provision in the
Navigant Subordination Agreement shall cease to be in full force and effect.

13.1.11    Change
of Control.  A Change of Control
shall occur.

13.2         Effect
of Event of Default.  If any Event of
Default described in Section 13.1.4 shall occur in respect of the
Company, the Commitments shall immediately terminate and the Loans and all

 52
 

 

other Obligations hereunder shall become immediately due and payable
and the Company shall become immediately obligated to Cash Collateralize all
Letters of Credit, all without presentment, demand, protest or notice of any
kind; and, if any other Event of Default shall occur and be continuing, the
Administrative Agent may (and, upon the written request of the Required Lenders
shall) declare the Commitments to be terminated in whole or in part and/or
declare all or any part of the Loans and all other Obligations hereunder to be
due and payable and/or demand that the Company immediately Cash Collateralize
all or any Letters of Credit, whereupon the Commitments shall immediately
terminate (or be reduced, as applicable) and/or the Loans and other Obligations
hereunder shall become immediately due and payable (in whole or in part, as applicable)
and/or the Company shall immediately become obligated to Cash Collateralize the
Letters of Credit (all or any, as applicable), all without presentment, demand,
protest or notice of any kind.  The
Administrative Agent shall promptly advise the Company of any such declaration,
but failure to do so shall not impair the effect of such declaration.  Notwithstanding the foregoing, the effect as
an Event of Default of any event described in Section 13.1.1 or 13.1.4 may be
waived in writing by all the Lenders, and the effect as an Event of Default or
any other event described in this Section 13 may be waived in writing by
the Required Lenders.  Any cash
collateral delivered hereunder shall be held by the Administrative Agent
(without liability for interest thereon) and applied to the Obligations arising
in connection with any drawing under a Letter of Credit.  After the expiration or termination of all
Letters of Credit, such cash collateral shall be applied by the Administrative
Agent to any remaining Obligations hereunder and any excess shall be delivered
to the Company or as a court of competent jurisdiction may elect.

SECTION 14          THE AGENTS.

14.1         Appointment
and Authorization.  Each Lender
hereby irrevocably (subject to Section 14.10) appoints, designates and
authorizes the Administrative Agent to take such action on its behalf under the
provisions of this Agreement and each other Loan Document and to exercise such
powers and perform such duties as are expressly delegated to it by the terms of
this Agreement or any other Loan Document, together with such powers as are
reasonably incidental thereto. 
Notwithstanding any provision to the contrary contained elsewhere in
this Agreement or in any other Loan Document, the Administrative Agent shall
not have any duty or responsibility except those expressly set forth herein,
nor shall the Administrative Agent have or be deemed to have any fiduciary
relationship with any Lender or participant, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read
into this Agreement or any other Loan Document or otherwise exist against the
Administrative Agent.  Without limiting
the generality of the foregoing sentence, the use of the term “agent” herein
and in other Loan Documents with reference to the Administrative Agent is not
intended to connote any fiduciary or other implied (or express) obligations
arising under agency doctrine of any applicable law.  Instead, such term is used merely as a matter
of market custom, and is intended to create or reflect only an administrative
relationship between independent contracting parties.

14.2         Issuing
Lender.  The Issuing Lender shall act
on behalf of the Lenders (according to their Pro Rata Shares) with respect to
any Letters of Credit issued by it and the documents associated therewith.  The Issuing Lender shall have all of the
benefits and immunities (a) provided to the Administrative Agent in this Section
14 with respect to any acts taken or omissions suffered by the Issuing
Lender in connection with Letters of Credit issued by it or proposed to be
issued by it and the applications and agreements for letters of credit
pertaining to such Letters of Credit as fully as if the term “Administrative
Agent”, as used in this Section 14, included the Issuing Lender with
respect to such acts or omissions and (b) as additionally provided in this
Agreement with respect to the Issuing Lender.

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14.3         Delegation
of Duties.  The Administrative Agent
may execute any of its duties under this Agreement or any other Loan Document
by or through agents, employees or attorneys-in-fact and shall be
entitled to advice of counsel and other consultants or experts concerning all
matters pertaining to such duties.  The
Administrative Agent shall not be responsible for the negligence or misconduct
of any agent or attorney-in-fact that it selects in the absence of
gross negligence or willful misconduct.

14.4         Exculpation
of Administrative Agent.  None of the
Administrative Agent nor any of its directors, officers, employees or agents
shall (a) be liable for any action taken or omitted to be taken by any of them
under or in connection with this Agreement or any other Loan Document or the
transactions contemplated hereby (except to the extent resulting from its own
gross negligence or willful misconduct in connection with its duties expressly
set forth herein as determined by a final, nonappealable judgment by a court of
competent jurisdiction), or (b) be responsible in any manner to any Lender or
participant for any recital, statement, representation or warranty made by any
Loan Party or Affiliate of the Company, or any officer thereof, contained in
this Agreement or in any other Loan Document, or in any certificate, report,
statement or other document referred to or provided for in, or received by the
Administrative Agent under or in connection with, this Agreement or any other
Loan Document, or the validity, effectiveness, genuineness, enforceability or
sufficiency of this Agreement or any other Loan Document (or the creation,
perfection or priority of any Lien or security interest therein), or for any
failure of the Company or any other party to any Loan Document to perform its
Obligations hereunder or thereunder.  The
Administrative Agent shall not be under any obligation to any Lender to
ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect the properties, books or records of the Company or any
of the Company’s Subsidiaries or Affiliates.

14.5         Reliance
by Administrative Agent.  The
Administrative Agent shall be entitled to rely, and shall be fully protected in
relying, upon any writing, communication, signature, resolution,
representation, notice, consent, certificate, electronic mail message,
affidavit, letter, telegram, facsimile, telex or telephone message, statement
or other document or conversation believed by it to be genuine and correct and
to have been signed, sent or made by the proper Person or Persons, and upon
advice and statements of legal counsel (including counsel to the Company),
independent accountants and other experts selected by the Administrative
Agent.  The Administrative Agent shall be
fully justified in failing or refusing to take any action under this Agreement
or any other Loan Document unless it shall first receive such advice or
concurrence of the Required Lenders as it deems appropriate and, if it so
requests, confirmation from the Lenders of their obligation to indemnify the
Administrative Agent against any and all liability and expense which may be
incurred by it by reason of taking or continuing to take any such action.  The Administrative Agent shall in all cases
be fully protected in acting, or in refraining from acting, under this
Agreement or any other Loan Document in accordance with a request or consent of
the Required Lenders and such request and any action taken or failure to act
pursuant thereto shall be binding upon each Lender.  For purposes of determining compliance with
the conditions specified in Section 12, each Lender that has signed
this Agreement shall be deemed to have consented to, approved or accepted or to
be satisfied with, each document or other matter required thereunder to be
consented to or approved by or acceptable or satisfactory to a Lender unless
the Administrative Agent shall have received written notice from such Lender
prior to the proposed Closing Date specifying its objection thereto.

14.6         Notice
of Default.  The Administrative Agent
shall not be deemed to have knowledge or notice of the occurrence of any Event
of Default or Unmatured Event of Default except with respect to defaults in the
payment of principal, interest and fees required to be paid to the
Administrative Agent for the account of the Lenders, unless the Administrative
Agent shall have received written notice from a

 54

 

Lender or the Company referring to this Agreement, describing such
Event of Default or Unmatured Event of Default and stating that such notice is
a “notice of default”.  The
Administrative Agent will notify the Lenders of its receipt of any such
notice.  The Administrative Agent shall
take such action with respect to such Event of Default or Unmatured Event of
Default as may be requested by the Required Lenders in accordance with Section
13; provided that unless and until the Administrative Agent has
received any such request, the Administrative Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with
respect to such Event of Default or Unmatured Event of Default as it shall deem
advisable or in the best interest of the Lenders.

14.7         Credit Decision.  Each Lender acknowledges that the
Administrative Agent has not made any representation or warranty to it, and
that no act by the Administrative Agent hereafter taken, including any consent
and acceptance of any assignment or review of the affairs of the Loan Parties,
shall be deemed to constitute any representation or warranty by the
Administrative Agent to any Lender as to any matter, including whether the
Administrative Agent has disclosed material information in its possession.  Each Lender represents to the Administrative
Agent that it has, independently and without reliance upon the Administrative
Agent and based on such documents and information as it has deemed appropriate,
made its own appraisal of and investigation into the business, prospects,
operations, property, financial and other condition and creditworthiness of the
Loan Parties, and made its own decision to enter into this Agreement and to
extend credit to the Company hereunder. 
Each Lender also represents that it will, independently and without
reliance upon the Administrative Agent and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action under
this Agreement and the other Loan Documents, and to make such investigations as
it deems necessary to inform itself as to the business, prospects, operations,
property, financial and other condition and creditworthiness of the Company.  Except for notices, reports and other
documents expressly herein required to be furnished to the Lenders by the
Administrative Agent, the Administrative Agent shall not have any duty or
responsibility to provide any Lender with any credit or other information
concerning the business, prospects, operations, property, financial or other
condition or creditworthiness of the Company which may come into the possession
of the Administrative Agent.

14.8         Indemnification.  Whether or not the transactions contemplated
hereby are consummated, each Lender shall indemnify upon demand the
Administrative Agent and its directors, officers, employees and agents (to the
extent not reimbursed by or on behalf of the Company and without limiting the
obligation of the Company to do so), according to its applicable Pro Rata
Share, from and against any and all Indemnified Liabilities (as hereinafter
defined); provided that no Lender shall be liable for any payment to any
such Person of any portion of the Indemnified Liabilities to the extent
determined by a final, nonappealable judgment by a court of competent
jurisdiction to have resulted from the applicable Person’s own gross negligence
or willful misconduct.  No action taken
in accordance with the directions of the Required Lenders shall be deemed to
constitute gross negligence or willful misconduct for purposes of this
Section.  Without limitation of the
foregoing, each Lender shall reimburse the Administrative Agent upon demand for
its ratable share of any costs or out-of-pocket expenses (including
Attorney Costs and Taxes) incurred by the Administrative Agent in connection
with the preparation, execution, delivery, administration, modification,
amendment or enforcement (whether through negotiations, legal proceedings or
otherwise) of, or legal advice in respect of rights or responsibilities under,
this Agreement, any other Loan Document, or any document contemplated by or
referred to herein, to the extent that the Administrative Agent is not
reimbursed for such expenses by or on behalf of the Company.  The undertaking in this Section shall survive
repayment of the Loans, cancellation of the

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Notes, expiration or termination of the Letters of Credit, any
foreclosure under, or modification, termination of this Agreement and the
resignation or replacement of the Administrative Agent.

14.9         Administrative
Agent in Individual Capacity. 
LaSalle and its Affiliates may make loans to, issue letters of credit
for the account of, accept deposits from, acquire equity interests in and
generally engage in any kind of banking, trust, financial advisory,
underwriting or other business with the Loan Parties and Affiliates as though
LaSalle were not the Administrative Agent hereunder and without notice to or
consent of any Lender.  Each Lender
acknowledges that, pursuant to such activities, LaSalle or its Affiliates may
receive information regarding the Company or its Affiliates (including
information that may be subject to confidentiality obligations in favor of the
Company or such Affiliate) and acknowledge that the Administrative Agent shall
be under no obligation to provide such information to them.  With respect to their Loans (if any),  LaSalle and its Affiliates shall have the
same rights and powers under this Agreement as any other Lender and may exercise
the same as though LaSalle were not the Administrative Agent, and the terms “Lender”
and “Lenders” include LaSalle and its Affiliates, to the extent applicable, in
their individual capacities.

14.10       Successor
Administrative Agent.  The
Administrative Agent may resign as Administrative Agent upon 30 days’ notice to
the Lenders and the Company.  If the
Administrative Agent resigns under this Agreement, the Required Lenders shall,
with (so long as no Event of Default exists) the consent of the Company (which
shall not be unreasonably withheld or delayed), appoint from among the Lenders
a successor agent for the Lenders.  If no
successor agent is appointed prior to the effective date of the resignation of
the Administrative Agent, the Administrative Agent may appoint, after
consulting with the Lenders and the Company, a successor agent from among the
Lenders.  Upon the acceptance of its
appointment as successor agent hereunder, such successor agent shall succeed to
all the rights, powers and duties of the retiring Administrative Agent and the
term “Administrative Agent” shall mean such successor agent, and the retiring
Administrative Agent’s appointment, powers and duties as Administrative Agent
shall be terminated. After any retiring Administrative Agent’s resignation
hereunder as Administrative Agent, the provisions of this Section 14 and
Sections 15.5 and 15.16 shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Administrative Agent
under this Agreement.  If no successor
agent has accepted appointment as Administrative Agent by the date which is 30
days following a retiring Administrative Agent’s notice of resignation, the
retiring Administrative Agent’s resignation shall nevertheless thereupon become
effective and the Lenders shall perform all of the duties of the Administrative
Agent hereunder until such time, if any, as the Required Lenders appoint a
successor agent as provided for above.

14.11       Administrative
Agent May File Proofs of Claim.  In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to any Loan Party, the Administrative Agent (irrespective
of whether the principal of any Loan shall then be due and payable as herein
expressed or by declaration or otherwise and irrespective of whether the
Administrative Agent shall have made any demand on the Company) shall be
entitled and empowered, by intervention in such proceeding or otherwise:

(a)           to file and prove a
claim for the whole amount of the principal and interest owing and unpaid in
respect of the Loans, and all other Obligations that are owing and unpaid and
to file such other documents as may be necessary or advisable in order to have
the claims of the Lenders and the Administrative Agent (including any claim for
the reasonable compensation, expenses, disbursements and advances of the
Lenders and the Administrative Agent and their respective agents and counsel
and all other amounts due the Lenders and the Administrative Agent under Sections
5, 15.5 and 15.17) allowed in such judicial proceedings; and

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

and any custodian,
receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender to make
such payments to the Administrative Agent and, in the event that the
Administrative Agent shall consent to the making of such payments directly to
the Lenders, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 5, 15.5 and 15.17.

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

14.12       Other Agents;
Arrangers and Managers.  None of the
Lenders or other Persons identified on the facing page or signature pages of
this Agreement as a “syndication agent,” “documentation agent,” “co-agent,” “book
manager,” “lead manager,” “arranger,” “lead arranger” or “co-arranger”, if any,
shall have any right, power, obligation, liability, responsibility or duty
under this Agreement other than, in the case of such Lenders, those applicable
to all Lenders as such.  Without limiting
the foregoing, none of the Lenders or other Persons so identified shall have or
be deemed to have any fiduciary relationship with any Lender.  Each Lender acknowledges that it has not
relied, and will not rely, on any of the Lenders or other Persons so identified
in deciding to enter into this Agreement or in taking or not taking action hereunder.

SECTION 15          GENERAL.

15.1         Waiver; Amendments.  No delay on the part of the Administrative
Agent or any Lender in the exercise of any right, power or remedy shall operate
as a waiver thereof, nor shall any single or partial exercise by any of them of
any right, power or remedy preclude other or further exercise thereof, or the
exercise of any other right, power or remedy. 
No amendment, modification or waiver of, or consent with respect to, any
provision of this Agreement or the other Loan Documents shall in any event be
effective unless the same shall be in writing and acknowledged by the Company
and Lenders having an aggregate Pro Rata Shares of not less than the aggregate
Pro Rata Shares expressly designated herein with respect thereto or, in the
absence of such designation as to any provision of this Agreement, by the
Required Lenders, and then any such amendment, modification, waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given.  No amendment,
modification, waiver or consent shall (a) extend or increase the Commitment of
any Lender without the written consent of such Lender, (b) extend the date
scheduled for payment of any principal (excluding mandatory prepayments) of or
interest on the Loans or any fees payable hereunder without the written consent
of each Lender directly affected thereby, (c) reduce the principal amount of
any Loan, the rate of interest thereon or any fees payable hereunder, without
the consent of each Lender directly affected thereby (except for periodic
adjustments of interest rates and fees resulting from a change in the
Applicable Margin as provided for in this Agreement); or (d) release any party
from its obligations under the Guaranty and Pledge Agreement, change the
definition of Required Lenders, any provision of this Section 15.1 or
reduce the aggregate Pro Rata Share required to effect an amendment,
modification, waiver or consent, without, in each case, the written consent of
all Lenders.  No provision of Section
14 or other provision of this Agreement affecting the Administrative Agent
in its capacity as such shall be amended, modified or waived without the
consent of the Administrative Agent.  No
provision of this Agreement relating to the rights or duties of the Issuing
Lender in its capacity as such shall be amended, modified or

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waived without the consent of the Issuing Lender.  No provision of this Agreement relating to
the rights or duties of the Swing Line Lender in its capacity as such shall be
amended, modified or waived without the consent of the Swing Line Lender.

15.2         Confirmations.  The Company and each holder of a Note agree
from time to time, upon written request received by it from the other, to
confirm to the other in writing (with a copy of each such confirmation to the
Administrative Agent) the aggregate unpaid principal amount of the Loans then
outstanding under such Note.

15.3         Notices.  All notices hereunder shall be in writing
(including facsimile transmission) and shall be sent to the applicable party at
its address shown on Annex B or at such other address as such party may,
by written notice received by the other parties, have designated as its address
for such purpose.  Notices sent by
facsimile transmission shall be deemed to have been given when sent; notices
sent by mail shall be deemed to have been given three Business Days after the
date when sent by registered or certified mail, postage prepaid; and notices
sent by hand delivery or overnight courier service shall be deemed to have been
given when received.

15.4         Computations.  Where the character or amount of any
asset or liability or item of income or expense is required to be determined,
or any consolidation or other accounting computation is required to be made,
for the purpose of this Agreement, such determination or calculation shall, to
the extent applicable and except as otherwise specified in this Agreement, be
made in accordance with GAAP, consistently applied; provided that if the
Company notifies the Administrative Agent that the Company wishes to amend any
covenant in Section 10 or 11.12 (or any related definition) to eliminate or to
take into account the effect of any change in GAAP on the operation of such
covenant (or if the Administrative Agent notifies the Company that the Required
Lenders wish to amend Section 10 or 11.12 (or any related definition) for such
purpose), then the Company’s compliance with such covenant shall be determined
on the basis of GAAP in effect immediately before the relevant change in GAAP
became effective, until either such notice is withdrawn or such covenant (or
related definition) is amended in a manner satisfactory to the Company and the
Required Lenders.

15.5         Costs, Expenses
and Taxes.  The Company agrees to pay
on demand all reasonable out-of-pocket costs and expenses of the Administrative
Agent (including Attorney Costs and any Taxes) in connection with the
preparation, execution, syndication, delivery and administration (including the
costs of Intralinks (or other similar service), if applicable) of this
Agreement, the other Loan Documents and all other documents provided for herein
or delivered or to be delivered hereunder or in connection herewith (including
any amendment, supplement or waiver to any Loan Document), whether or not the
transactions contemplated hereby or thereby shall be consummated, and all
reasonable out-of-pocket costs and expenses (including Attorney Costs and any
Taxes) incurred by the Administrative Agent and each Lender after an Event of
Default in connection with the collection of the Obligations or the enforcement
of this Agreement the other Loan Documents or any such other documents or
during any workout, restructuring or negotiations in respect thereof.  In addition, the Company agrees to pay, and
to save the Administrative Agent and the Lenders harmless from all liability
for, any fees of the Company’s auditors in connection with any reasonable
exercise by the Administrative Agent and the Lenders of their rights pursuant
to Section 10.2.  All Obligations
provided for in this Section 15.5 shall survive repayment of the Loans,
cancellation of the Notes, expiration or termination of the Letters of Credit
and termination of this Agreement.  The
Company’s obligation to pay the Obligations provided for in this Section 15.5
shall be conditioned on its receipt from the Administrative Agent or the
Lenders, as applicable, of reasonably detailed invoices setting forth such
Obligations.

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15.6         Assignments;
Participations.

15.6.1      Assignments.  (a) 
Any Lender may at any time assign to one or more Persons (any such
Person, an “Assignee”) all or any portion of such Lender’s Loans and
Commitments, with the prior written consent of the Administrative Agent, the
Issuing Lender (for an assignment of the Revolving Loans and the Revolving Commitment)
and, so long as no Event of Default exists, the Company (which consents shall
not be unreasonably withheld or delayed and shall not be required for an
assignment by a Lender to a Lender or an Affiliate of a Lender).  Except as the Administrative Agent may
otherwise agree, any such assignment shall be in a minimum aggregate amount
equal to $5,000,000 or, if less, the remaining Commitment and Loans held by the
assigning Lender.  The Company and the
Administrative Agent shall be entitled to continue to deal solely and directly
with such Lender in connection with the interests so assigned to an Assignee
until the Administrative Agent shall have received and accepted an effective
assignment agreement in substantially the form of Exhibit D hereto (an “Assignment
Agreement”) executed, delivered and fully completed by the applicable
parties thereto and a processing fee of $3,500. 
No assignment may be made to any Person if at the time of such
assignment the Company would be obligated to pay any greater amount under Section
7.6 or 8 to the Assignee than the Company is then obligated to pay
to the assigning Lender under such Sections (and if any assignment is made in
violation of the foregoing, the Company will not be required to pay such
greater amounts).  Any attempted
assignment not made in accordance with this Section 15.6.1 shall be
treated as the sale of a participation under Section 15.6.2.  The Company shall be deemed to have granted
its consent to any assignment requiring its consent hereunder unless the
Company has expressly objected to such assignment within five Business Days
after notice thereof.

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

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

15.6.2      Participations.  Any Lender may at any time sell to one or
more Persons participating interests in its Loans, Commitments or other
interests hereunder (any such Person, a “Participant”).  In the event of a sale by a Lender of a
participating interest to a Participant, (a) such Lender’s obligations
hereunder shall remain unchanged for all purposes, (b) the Company and the
Administrative Agent shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and

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obligations hereunder and (c) all amounts payable by the Company
shall be determined as if such Lender had not sold such participation and shall
be paid directly to such Lender.  No
Participant shall have any direct or indirect voting rights hereunder except
with respect to any event described in Section 15.1 expressly
requiring the unanimous vote of all Lenders or, as applicable, all affected
Lenders.  Each Lender agrees to
incorporate the requirements of the preceding sentence into each participation
agreement which such Lender enters into with any Participant.  The Company agrees that if amounts
outstanding under this Agreement are due and payable (as a result of
acceleration or otherwise), each Participant shall be deemed to have the right
of set-off in respect of its participating interest in amounts owing under this
Agreement and with respect to any Letter of Credit to the same extent as if the
amount of its participating interest were owing directly to it as a Lender
under this Agreement; provided that such right of set-off shall be
subject to the obligation of each Participant to share with the Lenders, and
the Lenders agree to share with each Participant, as provided in Section 7.5.  The Company also agrees that each Participant
shall be entitled to the benefits of Section 7.6 or 8 as if it
were a Lender (provided that on the date of the participation no
Participant shall be entitled to any greater compensation pursuant to Section
7.6 or 8 than would have been paid to the participating Lender on
such date if no participation had been sold and that each Participant complies
with Section 7.6(d) as if it were an Assignee).

15.7         Register.  The Administrative Agent shall maintain a
copy of each Assignment Agreement delivered and accepted by it and register
(the “Register”) for the recordation of names and addresses of the
Lenders and the Commitment of each Lender from time to time and whether such
Lender is the original Lender or the Assignee. 
No assignment shall be effective unless and until the Assignment
Agreement is accepted and registered in the Register. All records of transfer
of a Lender’s interest in the Register shall be conclusive, absent manifest
error, as to the ownership of the interests in the Loans. The Administrative
Agent shall not incur any liability of any kind with respect to any Lender with
respect to the maintenance of the Register. 
Upon Company’s reasonable request from time to time, the Administrative
Agent shall furnish the Company with a copy of the Register.

15.8         GOVERNING LAW.  THIS AGREEMENT AND EACH NOTE SHALL BE A
CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS
APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE,
WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

15.9         Confidentiality.  As
required by federal law and the Administrative Agent’s policies and practices,
the Administrative Agent may need to obtain, verify, and record certain customer identification
information and documentation in connection with opening or maintaining
accounts, or establishing or continuing to provide services.  The Administrative Agent and each
Lender agree to use commercially reasonable efforts (equivalent to the efforts
the Administrative Agent or such Lender applies to maintain the confidentiality
of its own confidential information) to maintain as confidential all
information provided to them by any Loan Party and designated as confidential,
except that the Administrative Agent and each Lender may disclose such
information (a) to Persons employed or engaged by the Administrative Agent or
such Lender in evaluating, approving, structuring or administering the Loans and
the Commitments; (b) to any assignee or participant or potential assignee or
participant that has agreed to comply with the covenant contained in this Section
15.9 (and any such assignee or participant or potential assignee or
participant may disclose such information to Persons employed or engaged by
them as described in clause (a) above); (c) as required or requested by any
federal or state regulatory authority or examiner, or any insurance industry
association, or as reasonably believed by the Administrative Agent or such
Lender to be compelled by any court decree, subpoena or legal or administrative
order or process; (d) as, on the advice of the Administrative Agent’s or such
Lender’s counsel, is required by law; (e) in

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connection with the exercise of any right or remedy under the Loan
Documents or in connection with any litigation to which the Administrative
Agent or such Lender is a party; (f) to any nationally recognized rating agency
that requires access to information about a Lender’s investment portfolio in
connection with ratings issued with respect to such Lender; (g) to any
Affiliate of the Administrative Agent, the Issuing Lender or any other Lender
who may provide Bank Products to the Loan Parties; or (h) that ceases to be
confidential through no fault of the Administrative Agent or any Lender.  Notwithstanding the foregoing, the Company
consents to the publication by the Administrative Agent or any Lender of a
tombstone or similar advertising material relating to the financing
transactions contemplated by this Agreement, and the Administrative Agent
reserves the right to provide to industry trade organizations information
necessary and customary for inclusion in league table measurements.

15.10       Severability.  Whenever possible each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this Agreement.  All obligations and
rights of the Company and of the Administrative Agent and the Lenders expressed
herein or in any other Loan Document shall be in addition to and not in
limitation of those provided by applicable law.

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

15.12       Entire Agreement.  This Agreement, together with the other Loan
Documents, embodies the entire agreement and understanding among the parties
hereto and supersedes all prior or contemporaneous agreements and
understandings of such Persons, verbal or written, relating to the subject matter
hereof and thereof (except as relates to the fees described in Section 5.3)
and any prior arrangements made with respect to the payment by the Company of
(or any indemnification for) any fees, costs or expenses payable to or incurred
(or to be incurred) by or on behalf of the Administrative Agent or the Lenders.

15.13       Counterparts.  This Agreement may be executed in any
number of counterparts and by the different parties hereto on separate
counterparts and each such counterpart shall be deemed to be an original, but
all such counterparts shall together constitute but one and the same
Agreement.  Receipt of an executed
signature page to this Agreement by facsimile or other electronic transmission
shall constitute effective delivery thereof. 
Electronic records of executed Loan Documents maintained by the Lenders
shall deemed to be originals.

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

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

15.16       Customer
Identification - USA Patriot Act Notice. 
Each
Lender and LaSalle (for itself and not on behalf of any other party) hereby
notifies the Loan Parties that, pursuant to the requirements of the USA Patriot
Act, Title III of Pub. L. 107-56, signed into law October 26, 2001 (the “Act”),
it is required to obtain, verify and record information that identifies the
Loan Parties, which information includes the name and address of the Loan
Parties and other information that will allow such Lender or LaSalle, as
applicable, to identify the Loan Parties in accordance with the Act.

15.17       INDEMNIFICATION BY THE COMPANY.  IN CONSIDERATION OF THE EXECUTION AND
DELIVERY OF THIS AGREEMENT BY THE ADMINISTRATIVE AGENT AND THE LENDERS AND THE
AGREEMENT TO EXTEND THE COMMITMENTS PROVIDED HEREUNDER, THE COMPANY HEREBY
AGREES TO INDEMNIFY, EXONERATE AND HOLD THE ADMINISTRATIVE AGENT, EACH LENDER
AND EACH OF THE OFFICERS, DIRECTORS, EMPLOYEES, AFFILIATES AND AGENTS OF THE
ADMINISTRATIVE AGENT AND EACH LENDER (EACH A “LENDER PARTY”) FREE AND HARMLESS
FROM AND AGAINST ANY AND ALL ACTIONS, CAUSES OF ACTION, SUITS, LOSSES,
LIABILITIES, DAMAGES AND EXPENSES, INCLUDING ATTORNEY COSTS (COLLECTIVELY, THE “INDEMNIFIED
LIABILITIES”), INCURRED BY THE LENDER PARTIES OR ANY OF THEM AS A RESULT OF, OR
ARISING OUT OF, OR RELATING TO (A) ANY TENDER OFFER, MERGER, PURCHASE OF CAPITAL
SECURITIES, PURCHASE OF ASSETS OR OTHER SIMILAR TRANSACTION FINANCED OR
PROPOSED TO BE FINANCED IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, WITH THE
PROCEEDS OF ANY OF THE LOANS, (B) THE USE, HANDLING, RELEASE, EMISSION,
DISCHARGE, TRANSPORTATION, STORAGE, TREATMENT OR DISPOSAL OF ANY HAZARDOUS
SUBSTANCE AT ANY PROPERTY OWNED OR LEASED BY ANY LOAN PARTY, (C) ANY VIOLATION
OF ANY ENVIRONMENTAL LAWS WITH RESPECT TO CONDITIONS AT ANY PROPERTY OWNED OR
LEASED BY ANY LOAN PARTY OR THE OPERATIONS CONDUCTED THEREON, (D) THE
INVESTIGATION, CLEANUP OR REMEDIATION OF OFFSITE LOCATIONS AT WHICH ANY LOAN
PARTY OR THEIR RESPECTIVE PREDECESSORS ARE ALLEGED TO HAVE DIRECTLY OR
INDIRECTLY DISPOSED OF HAZARDOUS SUBSTANCES OR (E) THE EXECUTION,
DELIVERY, PERFORMANCE OR ENFORCEMENT OF THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT BY ANY OF THE LENDER PARTIES, EXCEPT FOR ANY SUCH INDEMNIFIED
LIABILITIES ARISING ON ACCOUNT OF THE APPLICABLE LENDER PARTY’S GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT AS DETERMINED BY A FINAL, NONAPPEALABLE
JUDGMENT BY A COURT OF COMPETENT JURISDICTION. 
IF AND TO THE EXTENT THAT THE FOREGOING UNDERTAKING MAY BE UNENFORCEABLE
FOR ANY REASON, THE COMPANY HEREBY AGREES TO MAKE THE MAXIMUM CONTRIBUTION TO
THE PAYMENT AND SATISFACTION OF EACH OF THE INDEMNIFIED LIABILITIES WHICH IS
PERMISSIBLE UNDER APPLICABLE LAW.  THE
COMPANY SHALL NOT BE LIABLE FOR ANY SETTLEMENT MADE BY A LENDER PARTY WITHOUT
THE COMPANY’S WRITTEN CONSENT, SUCH CONSENT NOT TO BE UNREASONABLY WITHHELD OR
DELAYED.  PROMPTLY AFTER RECEIPT BY A
LENDER PARTY UNDER THIS PARAGRAPH OF NOTICE OF ITS INVOLVEMENT IN ANY ACTION
ARISING OUT OF THIS AGREEMENT, IF A CLAIM FOR INDEMNIFICATION IN RESPECT
THEREOF IS TO BE MADE AGAINST THE COMPANY UNDER THIS PARAGRAPH, SUCH LENDER
PARTY

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SHALL
NOTIFY THE COMPANY IN WRITING OF SUCH INVOLVEMENT.  FAILURE BY SUCH LENDER PARTY TO SO NOTIFY THE
COMPANY SHALL NOT RELIEVE THE COMPANY FROM THE OBLIGATION TO INDEMNIFY THE
LENDER PARTY IN ACCORDANCE WITH THIS SECTION 15.17, EXCEPT AND ONLY TO
THE EXTENT THE COMPANY SUFFERS ACTUAL PREJUDICE AS A RESULT OF SUCH FAILURE TO
NOTIFY.  ALL OBLIGATIONS PROVIDED FOR IN
THIS SECTION 15.17 SHALL SURVIVE REPAYMENT OF THE LOANS, CANCELLATION OF
THE NOTES, EXPIRATION OR TERMINATION OF THE LETTERS OF CREDIT, OR TERMINATION
OF THE GUARANTY AND PLEDGE AGREEMENT AND THIS AGREEMENT.

15.18       Nonliability of
Lenders.  The relationship between
the Company on the one hand and the Lenders and the Administrative Agent on the
other hand shall be solely that of borrower and lender.  Neither the Administrative Agent nor any
Lender has any fiduciary relationship with or duty to any Loan Party arising
out of or in connection with this Agreement or any of the other Loan Documents,
and the relationship between the Loan Parties, on the one hand, and the Administrative
Agent and the Lenders, on the other hand, in connection herewith or therewith
is solely that of debtor and creditor. 
Neither the Administrative Agent nor any Lender undertakes any
responsibility to any Loan Party to review or inform any Loan Party of any
matter in connection with any phase of any Loan Party’s business or
operations.  The Company agrees, on
behalf of itself and each other Loan Party, that neither the Administrative
Agent nor any Lender shall have liability to any Loan Party (whether sounding
in tort, contract or otherwise) for losses suffered by any Loan Party in
connection with, arising out of, or in any way related to the transactions
contemplated and the relationship established by the Loan Documents, or any
act, omission or event occurring in connection therewith, unless it is
determined in a final non-appealable judgment by a court of competent
jurisdiction that such losses resulted from the gross negligence or willful
misconduct of the party from which recovery is sought.  NO LENDER
PARTY SHALL BE LIABLE FOR ANY DAMAGES ARISING FROM THE USE BY OTHERS OF ANY
INFORMATION OR OTHER MATERIALS OBTAINED THROUGH INTRALINKS OR OTHER SIMILAR
INFORMATION TRANSMISSION SYSTEMS IN CONNECTION WITH THIS AGREEMENT, NOR SHALL
ANY LENDER PARTY HAVE ANY LIABILITY WITH RESPECT TO, AND THE COMPANY ON BEHALF
OF ITSELF AND EACH OTHER LOAN PARTY, HEREBY WAIVES, RELEASES AND AGREES NOT TO
SUE FOR ANY SPECIAL, PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR ARISING OUT OF ITS
ACTIVITIES IN CONNECTION HEREWITH OR THEREWITH (WHETHER BEFORE OR AFTER THE
CLOSING DATE).  The Company
acknowledges that it has been advised by counsel in the negotiation, execution
and delivery of this Agreement and the other Loan Documents to which it is a
party.  No joint venture is created
hereby or by the other Loan Documents or otherwise exists by virtue of the
transactions contemplated hereby among the Lenders or among the Loan Parties
and the Lenders

15.19       FORUM SELECTION AND CONSENT TO JURISDICTION.  ANY LITIGATION BASED HEREON, OR ARISING OUT
OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT,
SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF
ILLINOIS OR IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF
ILLINOIS; PROVIDED THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR
OPERATE TO PRECLUDE THE ADMINISTRATIVE AGENT FROM BRINGING SUIT OR TAKING OTHER
LEGAL ACTION IN ANY OTHER JURISDICTION. 
THE COMPANY HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION
OF THE COURTS OF

 63
 

 

THE STATE OF ILLINOIS AND OF THE UNITED
STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS FOR THE PURPOSE OF
ANY SUCH LITIGATION AS SET FORTH ABOVE. 
THE COMPANY FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY
REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE
STATE OF ILLINOIS.  THE COMPANY HEREBY
EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH
LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY
SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

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

15.21       Judgment Currency.  If for the purposes
of obtaining judgment in any court it is necessary to convert a sum due from
Company 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 usual and customary banking procedures
Administrative Agent could purchase the specified currency with such other
currency at any of Administrative Agent’s offices in the United States of
America on the Business Day preceding that on which final judgment is
given.  The obligations of the Company in
respect of any sum due to any Lender, Issuing Lender, or 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, Issuing Lender or Administrative Agent (as
the case may be) of any sum adjudged to be so due in such other currency such
Lender, Issuing Lender or 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, Issuing Lender or Administrative Agent, as the
case may be, in the specified currency, Company agrees, to the fullest extent
that it may effectively do so, as a separate obligation and notwithstanding any
such judgment, to indemnify such Lender, Issuing Lender or Administrative
Agent, as the case may be, against such loss, and if the amount of the
specified currency so purchased exceed (a) the sum originally due to any
Lender, Issuing Lender or 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
7.5, each Lender, Issuing Lender or Administrative Agent, as the case may
be, agrees to promptly remit such excess to the Company.

15.22       Amendment and
Restatement.

(a)           On the Closing Date,
the Existing Credit Agreement shall be amended, restated and superseded in its
entirety.  The parties hereto acknowledge
and agree that (i) this Agreement, any Notes

 64
 

 

delivered
pursuant to Section 3.1 and the other Loan Documents executed and
delivered in connection herewith do not constitute a novation, payment and
reborrowing, or termination of the “Obligations” (as defined in the Existing
Credit Agreement) under the Existing Credit Agreement as in effect prior to the
Closing Date; (ii) such “Obligations” are in all respects continuing with only
the terms thereof being modified as provided in this Agreement; (iii) the Liens
as granted under the collateral documents securing payment of such “Obligations”
have been terminated and do not secure the payment of the Obligations (as
defined in this Agreement); and (iv) upon the effectiveness of this Agreement
all loans and letters of credit outstanding under the Existing Credit Agreement
immediately before the effectiveness of this Agreement will be part of the
Loans and Letters of Credit hereunder on the terms and conditions set forth in
this Agreement.

(b)           Notwithstanding the
modifications effected by this Agreement of the representations, warranties and
covenants of the Company contained in the Existing Credit Agreement, the
Company acknowledges and agrees that any causes of action or other rights
created in favor of any Lender and its successors arising out of the
representations and warranties of the Company contained in or delivered
(including representations and warranties delivered in connection with the making
of the loans or other extensions of credit thereunder) in connection with the
Existing Credit Agreement shall survive the execution and delivery of this
Agreement to the extent specifically provided in the Existing Credit Agreement
and without extending any applicable statute of limitations; provided, however,
that it is understood and agreed that the Company’s monetary obligations under
the Existing Credit Agreement in respect of the loans and letters of credit
thereunder are evidenced by this Agreement as provided in Section 2 hereof.

(c)           All indemnification
obligations of the Company pursuant to the Existing Credit Agreement (including
any arising from a breach of the representations thereunder) shall survive the
amendment and restatement of the Existing Credit Agreement pursuant to this
Agreement.

(d)           On and after the
Closing Date, (i) each reference in the Loan Documents to the “Credit Agreement”,
“thereunder”, “thereof” or similar words referring to the Credit Agreement
shall mean and be a reference to this Agreement and (ii) each reference in the
Loan Documents to a “Note” shall mean and be a Note as defined in this
Agreement.

[signature pages
follow]

 65

 

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

	
  

  	
  LECG, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  LECG Corporation

  Sole Managing Member of LECG, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  John C. Burke

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  

 

Signature Page to Credit
Agreement

 

 

 

	
  

  	
  LASALLE BANK NATIONAL ASSOCIATION, as

  
	
   

  	
  Administrative Agent, as Issuing Lender and as a
  Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Patrick J. O’Toole

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  First Vice President

  
					

 

 

	
  

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
  as Syndication Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Wilson Jui

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

	
  

  	
  U. S. BANK NATIONAL ASSOCIATION, as
  Co-

  
	
   

  	
  Documentation Agent and a Lender

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Thomas Marks

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

	
  

  	
  KEY BANK N. A., as Co-Documentation Agent and a 

  
	
   

  	
  Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Andrew Chang

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

	
  

  	
  WELLS FARGO BANK , N.A., as
  Co-Documentation

  
	
   

  	
  Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Nuzha Bukhari

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

	
  

  	
  THE NORTHERN TRUST COMPANY, as
  a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ John Burda

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

ANNEX A

LENDERS AND PRO RATA SHARES

	
  Lender

  	
   

  	
  Revolving

  Commitment Amount

  	
   

  	
  Pro Rata Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LaSalle Bank National
  Association

  	
   

  	
  $

  	
  26,000,000

  	
  *

  	
  26.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
  $

  	
  26,000,000

  	
   

  	
  26.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U. S. Bank National
  Association

  	
   

  	
  $

  	
  14,000,000

  	
   

  	
  14.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KeyBank National
  Association

  	
   

  	
  $

  	
  12,000,000

  	
   

  	
  12.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wells Fargo Bank, N.A.

  	
   

  	
  $

  	
  12,000,000

  	
   

  	
  12.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Northern Trust
  Company

  	
   

  	
  $

  	
  10,000,000

  	
   

  	
  10.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTALS

  	
   

  	
  $

  	
  100,000,000

  	
   

  	
  100

  	
  %

  

 

*              Includes Swing Line
Commitment Amount of $10,000,000.

 

ANNEX B

ADDRESSES FOR NOTICES

LECG, LLC

c/o LECG
Corporation

33 West Monroe
Street

23rd Floor

Chicago, Illinois
60603

Attention: Marvin
A. Tenenbaum, Esq.

Telephone: (312)
267-8203

Facsimile: (312) 267-8206

LASALLE BANK NATIONAL ASSOCIATION, as Administrative Agent, Issuing Lender
and a Lender

Notices of Borrowing , Conversion, Continuation and
Letter of Credit Issuance

135 South LaSalle
Street

Chicago, Illinois
60603

Attention: Patrick
O’Toole

Telephone: (312)
904-0735

Facsimile: 
(312) 904-8802

All Other Notices

135 South LaSalle
Street

Chicago, Illinois
60603

Attention: Patrick
O’Toole

Telephone: (312)
904-0735

Facsimile: 
(312) 904-8802

BANK OF AMERICA, N.A., as Syndication Agent and a Lender

Notices of Borrowing , Conversion, Continuation and
Letter of Credit Issuance

101 South Marengo

Pasadena,
California  91101

Attention: Michael
Towman/ Linda Escamilla

Telephone: (626)
666-2238

Facsimile: 
(626) 666-2241

All Other Notices

315 Montgomery
Street

San Francisco,
California  94104

Attention: David
Leimsleder

Telephone: (415)
622-3371

Facsimile: 
(877) 431-3816

 

U.S. BANK NATIONAL ASSOCIATION, as Co-Documentation Agent and a Lender

Notices of Borrowing , Conversion, Continuation and
Letter of Credit Issuance

CLS-West Complex
Credits Department

555 S.W. Oak Street

Mail Code
PD-OR-P7LN

Portland,
Oregon  97204

Attention: Lennie
Regalado

Telephone: (503)
275-4395

Facsimile: 
(503) 275-4600

All Other Notices

National Corporate
Banking West

555 S.W. Oak
Street

Mail Code
PD-OR-P4CB

Portland,
Oregon  97204

Attention: Thomas
Marks

Telephone: (503)
275-5864

Facsimile: 
(503) 275-5428

KEYBANK NATIONAL ASSOCIATION., as Co-Documentation Agent and a Lender

Notices of Borrowing , Conversion, Continuation and
Letter of Credit Issuance

                                

Attention: Matthew
Schorgl

Telephone: (216)
689-5459

Facsimile: 
(216) 689-5184

All Other Notices

                                

Attention: Andrew
Chang

Telephone: (415)
486-3419

Facsimile: 
(415) 486-3414

 

WELLS FARGO BANK, N.A., as Co-Documentation Agent and a Lender

Notices of Borrowing , Conversion, Continuation and
Letter of Credit Issuance

                                

Attention: Mina Tran

Telephone: (510) 464-1797

Facsimile: 
(510) 839-2296

All Other Notices

                                

Attention: Nuzha Bukhari

Telephone: (510) 464-1706

Facsimile: 
(510) 839-2296

THE NORTHERN TRUST COMPANY, as a Lender

Notices of Borrowing , Conversion, Continuation and
Letter of Credit Issuance

                                

Attention: Michael Lorenzi

Telephone: (312) 557-1840

Facsimile: 
(312) 630-1566

All Other Notices

                                

Attention: John Burda

Telephone: (312) 444-3455

Facsimile: 
(312) 444-7028

 

 

EXHIBIT A

FORM OF

NOTE

	
  

  	
                  ,                

  
	
  $                           

  	
  Chicago, Illinois

  

 

The undersigned, for value received, promises to pay
to the order of                    
(the “Lender”) at the principal office of LaSalle Bank National
Association (the “Administrative Agent”) in Chicago, Illinois the
aggregate unpaid amount of all Loans made to the undersigned by the Lender
pursuant to the Credit Agreement referred to below (as shown on the schedule
attached hereto (and any continuation thereof) or in the records of the
Lender), such principal amount to be payable on the dates set forth in the
Credit Agreement.

The undersigned further promises to pay interest on
the unpaid principal amount of each Loan from the date of such Loan until such
Loan is paid in full, payable at the rate(s) and at the time(s) set forth in
the Credit Agreement.  Payments of both
principal and interest are to be made in lawful money of the United States of
America.

This Note evidences indebtedness incurred under, and
is subject to the terms and provisions of, the Second Amended and Restated
Credit Agreement, dated as of December 15, 2006 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”;
terms not otherwise defined herein are used herein as defined in the Credit
Agreement), among the undersigned, certain financial institutions (including
the Lender) and the Administrative Agent, to which Credit Agreement reference
is hereby made for a statement of the terms and provisions under which this
Note may or must be paid prior to its due date or its due date accelerated.

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

	
   

  	
  LECG, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

 

EXHIBIT B

FORM OF COMPLIANCE
CERTIFICATE

To:                          LaSalle Bank National
Association, as Administrative Agent

Please refer to the Second Amended and Restated Credit
Agreement dated as of December 15, 2006 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”) among
LECG, LLC (the “Company”), various financial institutions and LaSalle
Bank National Association, as Administrative Agent.  Terms used but not otherwise defined herein
are used herein as defined in the Credit Agreement.

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

II.                                     Financial Tests.  The Company hereby certifies and warrants to
you that the following is a true and correct computation as at the Computation
Date of the following ratios and/or financial restrictions contained in the
Credit Agreement:

A.            Section 11.12.1 - Minimum Fixed
Charge Coverage Ratio

	
  1.

  	
  Consolidated Net Income

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Plus:

  	
  Interest Expense

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
  income tax
  expense

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
  amortization of
  signing and

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  performance
  bonuses

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
  non-cash equity
  compensation

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Total (EBIT)

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Rentals

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Sum of (3) and (4)

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Cash Interest Expense

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Sum of (4) and (6)

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Ratio of (5) to (7)

  	
   

  	
         
  to 1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Minimum required

  	
   

  	
  2.0 to 1

  	
   

  

 

B.            Section 11.12.2 - Maximum Total Net
Leverage Ratio

	
  1.

  	
   

  	
  Total Debt

  	
   

  	
  $             

  	
   

  

 

 

 

	
  2.

  	
   

  	
  Cash in excess of $25,000,000

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  (1) less (2)

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Consolidated Net Income

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Plus:

  	
  Interest Expense

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
  income tax expense

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
  depreciation

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
  amortization

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
  non-cash equity compensation

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
  other non-cash charges

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
  extraordinary non-cash losses

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
  goodwill impairment

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
  expensed acquisition costs

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
  (up to $500,000)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  extraordinary gains

  	
   

  	
  $

  	
  (                

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Total (EBITDA)

  	
   

  	
  $

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Ratio of (3) to (6)  

  	
   

  	
             
  to 1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Maximum allowed

  	
   

  	
  3.0 to 1

  	
   

  

 

The Company further certifies to you that no Event of
Default or Unmatured Event of Default has occurred and is continuing.

The Company has caused this Certificate to be executed
and delivered by its duly authorized officer on      ,      

	
  

  	
  LECG, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

EXHIBIT C

FORM OF

ASSIGNMENT
AGREEMENT

Date:                     

To:          LECG, LLC

and

LaSalle Bank
National Association, as Administrative Agent

Re:          Assignment under the Credit
Agreement referred to below

Gentlemen and Ladies:

Please
refer to Section 15.6.1 of the Second Amended and Restated Credit Agreement (as
amended or otherwise modified from time to time, the “Credit Agreement”)
dated as of December 15, 2006 among LECG, LLC (the “Company”), various
financial institutions and LaSalle Bank National Association, as administrative
agent (in such capacity, the “Administrative Agent”).  Unless otherwise defined herein or the
context otherwise requires, terms used herein have the meanings provided in the
Credit Agreement.

                  
(the “Assignor”) hereby sells and assigns, without recourse, to                 
(the “Assignee”), and the Assignee hereby purchases and assumes from the
Assignor, that interest in and to the Assignor’s rights and obligations under
the Credit Agreement as of the date hereof equal to      %
of all of the Loans, of the participation interests in the Letters of Credit
and of the Commitments, such sale, purchase, assignment and assumption to be
effective as of      ,     or
such later date on which the Company and the Administrative Agent shall have
consented hereto (the “Effective Date”). 
After giving effect to such sale, purchase, assignment and assumption,
the Assignee’s and the Assignor’s respective Percentages for purposes of the
Credit Agreement will be as set forth opposite their names on the signature
pages hereof.

The
Assignor hereby instructs the Administrative Agent to make all payments from
and after the Effective Date in respect of the interest assigned hereby
directly to the Assignee.  The Assignor
and the Assignee agree that all interest and fees accrued up to, but not
including, the Effective Date are the property of the Assignor, and not the
Assignee.  The Assignee agrees that, upon
receipt of any such interest or fees, the Assignee will promptly remit the same
to the Assignor.

The
Assignor represents and warrants that it is the legal and beneficial owner of
the interest being assigned by it hereunder and that such interest is free and
clear of any adverse claim.

The
Assignee represents and warrants to the Company and the Administrative Agent
that, as of the date hereof, the Company will not be obligated to pay any
greater amount under Section 7.6 or 8 of the Credit Agreement than the Company
is obligated to pay to the Assignor under such Section.  [The Assignee has delivered, or is delivering
concurrently herewith, to the Company and the Administrative Agent the forms
required by Section 7.6 of the Credit Agreement.] [INSERT IF ASSIGNEE IS
ORGANIZED UNDER THE LAWS OF A JURISDICTION OTHER THAN THE UNITED STATES OF AMERICA
OR A STATE THEREOF.]  The
[Assignee/Assignor] [Borrower] shall pay the fee payable to the Administrative
Agent pursuant to Section 15.6.1.

 

The
Assignee hereby confirms that it has received a copy of the Credit
Agreement.  Except as otherwise provided
in the Credit Agreement, effective as of the Effective Date:

(a)                                  the
Assignee (i) shall be deemed automatically to have become a party to the Credit
Agreement and to have all the rights and obligations of a “Lender” under the
Credit Agreement as if it were an original signatory thereto to the extent
specified in the second paragraph hereof; and (ii) agrees to be bound by the
terms and conditions set forth in the Credit Agreement as if it were an
original signatory thereto; and

(b)                                 the
Assignor shall be released from its obligations under the Credit Agreement to
the extent specified in the second paragraph hereof.

The
Assignee hereby advises each of you of the following administrative details
with respect to the assigned Loans and Commitment:

(A)          Institution Name:

Address:

Attention:

Telephone:

Facsimile:

(B)           Payment Instructions:

This
Assignment shall be governed by and construed in accordance with the laws of
the State of Illinois

Please
evidence your receipt hereof and your consent to the sale, assignment, purchase
and assumption set forth herein by signing and returning counterparts hereof to
the Assignor and the Assignee.

	
  Percentage =    %

  	
  [ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  Adjusted Percentage =    %

  	
  [ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

ACKNOWLEDGED AND
CONSENTED TO

this         
day of            ,          

 

 

	
  LASALLE BANK NATIONAL ASSOCIATION, as
  Administrative Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ACKNOWLEDGED AND CONSENTED TO

  	
   

  	
   

  
	
  this    day of      ,

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LECG, LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
					

 

 

EXHIBIT D

FORM OF NOTICE OF
BORROWING

To:                          LaSalle
Bank National Association, as Administrative Agent

Please refer to the Second Amended and Restated Credit
Agreement dated as of December 15, 2006 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”) among LECG, LLC
(the “Company”), various financial institutions and LaSalle Bank
National Association, as Administrative Agent. 
Terms used but not otherwise defined herein are used herein as defined
in the Credit Agreement.

The undersigned hereby gives irrevocable notice,
pursuant to Section 2.2.2 of the Credit Agreement, of a request
hereby for a borrowing as follows:

(i)            The
requested borrowing date for the proposed borrowing (which is a Business Day)
is                         ,
           .

(ii)           The
aggregate amount of the proposed borrowing is $                          .

(iii)          The
type of Revolving Loans comprising the proposed borrowing are [Base Rate]
[Eurocurrency Rate] Loans denominated in                           .

(iv)          The
duration of the Interest Period for each Eurocurrency Rate Loan made as part of
the proposed borrowing, if applicable, is                           
months (which shall be 1, 2, 3 or 6 months).

The undersigned hereby certifies that on the date
hereof and on the date of borrowing set forth above, and immediately after
giving effect to the borrowing requested hereby: (i) there exists and there
shall exist no Unmatured Event of Default or Event of Default under the Credit
Agreement; and (ii) each of the representations and warranties contained in the
Credit Agreement and the other Loan Documents is true and correct as of the
date hereof, except to the extent that such representation or warranty
expressly relates to another date and except for changes therein expressly
permitted or expressly contemplated by the Credit Agreement.

The Company has caused this Notice of Borrowing to be
executed and delivered by its officer thereunto duly authorized on                           ,
             .

	
  

  	
  LECG, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

EXHIBIT E

FORM OF NOTICE OF
CONVERSION/CONTINUATION

To:                          LaSalle
Bank National Association, as Administrative Agent

Please refer to the Second Amended and Restated Credit
Agreement dated as of December 15, 2006 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”) among LECG, LLC
(the “Company”), various financial institutions and LaSalle Bank
National Association, as Administrative Agent. 
Terms used but not otherwise defined herein are used herein as defined in
the Credit Agreement.

The undersigned hereby gives irrevocable notice,
pursuant to Section 2.2.3 of the Credit Agreement, of its request to:

(a)           on [     date     ]
convert $[           ]of
the aggregate outstanding principal amount of the [           ]
Loan denominated in                 ,
bearing interest at the [           ]
Rate, into a(n) [             ]
Loan [and, in the case of a Eurocurrency Rate Loan, having an Interest Period
of [         ] month(s)];

[(b)          on [     date     ]
continue $[               ]of
the aggregate outstanding principal amount of the [              ]
Loan denominated in                   ,
bearing interest at the Eurocurrency Rate, as a Eurocurrency Rate Loan having
an Interest Period of [            ]
month(s)].

The undersigned
hereby represents and warrants that all of the conditions contained in Section
12.2 of the Credit Agreement have been satisfied on and as of the date
hereof, and will continue to be satisfied on and as of the date of the
conversion/continuation requested hereby, before and after giving effect
thereto.

The Company has caused this Notice of
Conversion/Continuation to be executed and delivered by its officer thereunto
duly authorized on            ,         .

	
  

  	
  LECG, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:Exhibit
4.1

INLAND AMERICAN REAL ESTATE TRUST, INC.

DISTRIBUTION REINVESTMENT PLAN

Inland
American Real Estate Trust, Inc. (“Inland American” or the “Company”), as a
service to its stockholders, hereby offers participation in its Distribution
Reinvestment Plan (the “Plan”).  The Plan
is designed to provide participants with a simple, convenient and economical
way to purchase shares of the Company’s common stock.  Stockholders who choose not to participate in
the Plan will receive cash distributions, as declared and paid by the Company.

To
aid in your understanding of the question-and-answer statements set forth
below, you may find the following basic definitions useful:

“Shares registered in your name” means shares of the Company’s
common stock for which you are the owner of record.  If you own shares of the Company’s common
stock but are not the owner of record for those shares, it is likely that the
shares you own are registered in the name of another (e.g., in the name of a
bank or trustee holding shares of common stock on your behalf) and are held for
you by the registered owner in an account in your name.

“Shares enrolled in the Plan” means shares registered in your
name that you have chosen to enroll in the Plan.  Distributions on all shares enrolled in the
Plan are automatically reinvested in additional shares of the Company’s common
stock.  You do not have to enroll all of
your shares of common stock in the Plan.

“Shares held in the Plan” or “Plan Shares”
are shares of the Company’s common stock purchased by your reinvested
distributions.  Shares held in the Plan
are registered in the name of the Administrator, or its nominee, but are
credited to your individual Plan Account maintained by the Administrator.  Distributions on all shares held in the Plan
are automatically reinvested in additional shares of the Company’s common
stock.

The
following question-and-answer statements define the Company’s Distribution
Reinvestment Plan, effective as of August 31, 2005.

Purpose

1.                                      What is the
purpose of the Plan?

The
purpose of the Plan is to provide eligible stockholders (see Question 5) with a
simple, convenient and economical way to invest cash distributions in
additional shares of the Company’s common stock.  The Plan is intended to be used by you as a
vehicle for long-term investment in the Company’s common stock and for building
your holdings in the Company’s common stock.

Maximum
Ownership of Shares.  To maintain our qualification as a REIT, no
more than 50% of our outstanding shares of common stock may be owned directly
or indirectly by five or fewer individuals at any time during July through
December of each year.  To ensure that we
meet this test, our articles of incorporation provide that no person may own
more than 9.8% of 

 

our issued and outstanding common stock.  Therefore, to the extent that any purchase of
shares of common stock under the Plan would cause you to own in excess of 9.8%
of our issued and outstanding common stock, you may not reinvest your distributions
to purchase additional shares of common stock.

Investment Options

2.                                      What investment
options are available to participants in the Plan?

The
Plan provides two options for purchasing additional shares of common
stock.  Cash distributions on all shares
held in the Plan for you are automatically reinvested to purchase additional
shares of common stock regardless of which investment option is selected:

Full
Distribution Reinvestment Option.  You may have cash
distributions on all of your shares of common stock automatically reinvested;
or

Partial
Distribution Reinvestment Option.  You may reinvest distributions
on a portion of the shares of common stock you own and continue to receive cash
distributions on the other shares registered in your name.  You can take advantage of this option by
enrolling in the Plan only those shares for which you wish to reinvest
distributions.

Benefits and Disadvantages

3.                                      What are the
benefits and disadvantages of the Plan?

Benefits.  Before deciding whether to participate, you
should consider the following benefits of the Plan:

·                                          You may purchase additional shares of the
Company’s common stock by automatically reinvesting cash distributions on all,
or less than all, of the shares registered in your name.  You will continue to receive cash
distributions for those shares of common stock that you choose not to enroll in
the Plan.

·                                          No commissions, brokerage fees or service
charges will be paid by you in connection with purchases under the Plan.

·                                          Your funds will be fully invested because the
Plan permits fractions of shares of common stock to be credited to your
account.  Distributions on such
fractions, as well as on whole shares, will be reinvested in additional shares
of common stock and credited to your account.

·                                          You may direct the Administrator to transfer,
at any time and at no cost to you, all or a portion of your shares held in the
Plan to a new or existing Plan Account for another person.

·                                          Regular statements from the Administrator
reflecting all current activity in your account, including purchases, sales and
latest balance, will simplify your recordkeeping.

 2
 

 

Disadvantages.  Before deciding whether to
participate, you should consider the following disadvantages of the Plan:

·                                          You will be treated for federal income tax
purposes as receiving a distribution equal to the fair market value of the
shares of common stock credited to your Plan Account as a result of the
reinvestment of cash distributions.  This
distribution will be taxable to the extent of our earnings and profits.  Accordingly, you may have a tax liability
without a corresponding distribution of cash with which to pay the liability
when it comes due.

·                                          You may not know the actual number of shares
of common stock credited to your Plan Account until after the applicable
Distribution Payment Date, as defined in Question 15.

·                                          Transfers or withdrawal of common stock held
in your Plan Account may take up to five business days to process.

·                                          You may incur brokerage commissions, fees and
income taxes, as described in Question 23.

·                                          You may not pledge shares of common stock
deposited in your Plan Account unless you withdraw the shares from the Plan.

·                                          We may amend, suspend, modify or terminate
the Plan at any time, without prior notice to, or the prior consent of,
participants in the Plan.

Administration

4.                                      Who administers
the Plan for participants?

Registrar
and Transfer Company (the “Administrator”) administers the Plan, keeps records,
sends statements of account to each participant, and performs other duties
related to the Plan.  Shares purchased
under the Plan will be registered in the name of the Administrator, or its
nominee, and the Administrator will maintain an individual account for you to
record your interests in the Plan.

The
Company, in conjunction with the Administrator, may adopt rules and regulations
to facilitate the administration of the Plan. 
The Company reserves the right to interpret the provisions of the Plan,
and any rules and regulations adopted in accordance therewith, in its sole
discretion.  The determination of any
matter with respect to the Plan made by the Company in good faith shall be
final and conclusive and binding on the Administrator and all participants in
the Plan.  The Administrator currently
acts as distribution disbursing and transfer agent and registrar for the
Company’s common stock and may have other business relationships with the
Company from time to time.

 3
 

 

The Administrator may be reached as shown below:

INFORMATION ABOUT THE PLAN

For answers to questions
regarding the Plan

and to request Plan forms, please contact:

Registrar and Transfer Company

Investor Relations Department

(800) 368-5948

email: info@rtco.com

website: http://www.rtco.com

From outside the continental
United States,

call (908) 497-2300

Send enrollment forms or

termination requests to:

Registrar and Transfer Company

Distribution Reinvestment Department

P.O. Box 664

Cranford, New Jersey 07016

Please include your account
number or Social Security

number on all correspondence. Also, please include a telephone

number where you can be reached during business hours.

Eligibility and Enrollment

5.                                      Who is eligible
to participate?

If
you are a stockholder in the Company and have shares registered in your name,
you are eligible to participate in the Plan. 
If your shares of common stock are registered in a name other than your
own (e.g., in the name of a bank or trustee holding shares of common stock on
your behalf) and you want to participate in the Plan, you should consult
directly with the entity holding your shares to determine if they can enroll in
the Plan.  If not, you should become the
owner of record by having your shares of common stock registered directly in
your own name.  You will not be eligible
to participate in the Plan, however, if you reside in a jurisdiction in which
it is unlawful or unduly burdensome for the Company or the Administrator to let
you participate.

The
Company reserves the right to reject the enrollment of any participant who has
abused the Plan through excessive sales, terminations and enrollments, or
otherwise (see Questions 1 and 29).

 4
 

 

6.                                      When may an
eligible person join the Plan?

If
you are eligible to participate as described in Question 5 and have been
furnished a copy of the Company’s Prospectus, you may join the Plan at any
time.  Your enrollment will become
effective as described below in Question 11.

7.                                      How does an
eligible person join the Plan?

You
may join the Plan by signing an Enrollment Form and returning it to the
Administrator.  In the event you wish to
enroll shares of common stock that are registered in more than one name (i.e.,
joint tenants, trustees, etc.), all registered stockholders must sign the
Enrollment Form.  You may obtain an
Enrollment Form at any time by calling the telephone number for the
Administrator set forth in Question 4.

8.                                      Is partial
participation possible under the Plan?

Yes.  You may elect to enroll in the Plan all, or
less than all, of the shares registered in your name.  However, distributions on all Plan Shares
will be reinvested so long as those shares of common stock are held in the
Plan.

9.                                      For what
reinvestment options does the Enrollment Form provide?

The
Enrollment Form authorizes the Administrator to invest in accordance with the
Plan all cash distributions paid on your shares then or subsequently enrolled
in the Plan.  Cash distributions paid on
your shares of common stock held by the Administrator in your Plan Account will
be reinvested in accordance with the Plan. 
The Enrollment Form also provides for the partial enrollment in the Plan
of your shares of common stock.  If you
do not wish all of the shares of common stock held in your name to be enrolled
in the Plan, you may designate the number of shares of common stock you do wish
enrolled.

10.                               How may a
participant change options under the Plan?

As
a participant, you may change your reinvestment options at any time by
requesting a new Enrollment Form and returning it to the Administrator at the
address set forth in Question 4.  Any
change in reinvestment option must be received by the Administrator not later
than the Record Date for the next Distribution Payment Date in order to make a
change with respect to that distribution payment (see also Questions 11, 13 and
15).

11.                               When does
enrollment in the Plan become effective?

Your
signed Enrollment Form will be processed as quickly as practicable after its
receipt by the Administrator. 
Reinvestment of cash distributions on your shares enrolled in the Plan
will take place as follows:

·                                          If your signed Enrollment Form is received by
the Administrator on or prior to the Record Date for a Distribution Payment
Date, reinvestment of distributions on your enrolled shares of common stock
will begin with that Distribution Payment Date.

 5
 

 

·                                          If your signed Enrollment Form is received by
the Administrator after the Record Date for a Distribution Payment Date, that
distribution payment will be made in cash and reinvestment of distributions on
your enrolled shares of common stock will begin with the next following
Distribution Payment Date.

For
a discussion of Record Dates and Distribution Payment Dates, see Questions 13
and 15.

Costs

12.                               Are there any
costs to participants in the Plan?

All
costs to administer the Plan are paid by the Company, except that you may incur
brokerage commissions, fees and income taxes as a result of your participation
in the Plan (see Question 23).

Purchases

13.                               When are the
Record Dates and Distribution Payment Dates for the Company’s distributions?

You
should not assume that the Company will pay distributions or pay them in any
particular amount or on any particular date. 
For a given distribution, the Company will announce the Distribution
Payment Date and corresponding Record Date at least ten days prior to the
Record Date in question.

The
Company currently has no plans to declare any special or extraordinary
distributions.  However, should any such
special distribution be declared, the Record Dates and Distribution Payment
Dates for it will be announced by the Company, and the amount due on shares
enrolled in the Plan will be paid to your account under the Plan and invested
in accordance with the Plan, subject to your right to withdraw at any time.

14.                               What is the
source of shares purchased under the Plan?

The
sole source of shares purchased under the Plan is newly issued shares of common
stock purchased directly from the Company.

15.                               When will
shares be purchased under the Plan?

Cash
distributions reinvested under the Plan will be applied to the purchase of
shares of common stock on the dates that cash distributions are paid on the
Company’s common stock (each, a “Distribution Payment Date”).  Your Plan Account generally will be credited
with purchased shares on the Distribution Payment Date, and your distribution
and voting rights as to purchased shares of common stock generally will
commence on that date.

16.                               What will be
the price of the shares purchased under the Plan?

The
price per share for shares of common stock purchased for you under the Plan on
any Distribution Payment Date will be equal to $9.50 per share until the
earlier of:

 6
 

 

·                                          the increase of the public offering price per
share of common stock in the initial public offering of the Company’s common
stock from $10.00 per share, if there is an increase; and

·                                          termination of the initial public offering of
the Company’s common stock.

After
the termination of the initial public offering of the Company’s common stock,
the price per share for shares of common stock purchased for you under the Plan
on any Distribution Payment Date will be equal to ninety-five percent (95.0%)
of the “market price” of a share of the Company’s common stock until the shares
become listed for trading on a national securities exchange or included for
quotation on an inter-dealer quotation system (a “liquidity event”).  For these purposes, “market price” means the
last price at which shares were offered by the Company in a public offering of
its shares and until a liquidity event occurs. 
If a liquidity event occurs, the price per share for shares of common
stock purchased for you under the Plan will be equal to one hundred percent
(100%) of the average daily open and close sales price per share, as reported
by the national securities exchange or inter-dealer quotation system, whichever
is applicable, on any Dividend Payment Date.

17.                               How many shares
will be purchased for participants?

The
number of shares of common stock purchased for you depends on the aggregate
amount of your cash distributions and the purchase price per share, determined
in accordance with Question 16.  Your
account will be credited with that number of shares of common stock, including
fractions computed to four decimal places, equal to the aggregate amount of
your cash distributions on any particular Distribution Payment Date, less taxes
on distributions (if applicable, see Question 23), divided by the applicable
purchase price per share.  The
Administrator and the Company will not accept orders to purchase a specific
number of shares or to purchase on days other than the applicable Distribution
Payment Date.  We will not
purchase shares of common stock for you under the Plan to the extent that the
purchase would cause you to own in excess of 9.8% of our issued and outstanding
shares of common stock, unless that limitation is waived by our board of
directors.

18.                               Will shares
purchased through the Plan earn distributions?

Yes.  All Plan Shares held for your account under
the Plan, including fractional shares, will be entitled to any distributions
when and as declared by the Company.  All
cash distributions payable on all shares credited to your account under the
Plan will be automatically reinvested in additional shares at a price as
described in Question 16.

Only
shares of common stock held as of the Record Date for a given distribution are
entitled to that distribution.  Thus,
shares of common stock acquired after the Record Date for a given distribution,
but before the Distribution Payment Date for that distribution, will not be
entitled to that particular distribution, but will be entitled to any
subsequent distribution for which they are shares of record on the Record Date
(see also Question 13).

 7
 

 

Sales and Transfers of
Shares Held in the Plan

19.                               May a
participant sell shares held in a Plan Account?

Yes.  You may request to have any whole number of
shares held in your Plan Account transferred out of your Plan Account and
registered in your name.  Once the shares
are registered in your name and no longer part of the Plan, you can either sell
them to a third party through efforts of your own or you can sell them back to
the Company by participating in the Company’s Share Repurchase Program.  There is no guarantee, however, that you will
be able to sell your shares to the Company through the Share Repurchase
Program.

If
shares are transferred out of your Plan Account on or after an “ex-distribution
date” but before the related Distribution Payment Date, the transfer will be
processed as described above and you will be entitled to receive the
distribution on those shares.  This
distribution will be reinvested in the Plan unless the transfer is part of a
termination (see Question 28).  An “ex-distribution
date” is generally two business days before the Record Date for the
distribution.

Distributions
on shares of common stock remaining in your Plan Account after a partial
transfer will continue to be reinvested under the Plan.  However, a request to transfer
shares, the execution of which would result in less than 25 shares remaining in
your Plan Account, will be considered by the Administrator to be a request to
terminate participation in the Plan. 
Following such a request, your Plan Account will be closed (see Question
29).

20.                               May a
participant assign, transfer or pledge to another person all or part of his or
her shares held in the Plan?

You
may change the ownership of all or part of your shares held in the Plan through
gift, private sale or otherwise.  If you
wish to transfer ownership, you should contact the Administrator by telephone
as set forth in Question 4.  The
Administrator will provide you with instructions on how to complete the
transfer.  This transfer generally will
be completed at no cost to you.

You
may not pledge (e.g., use as security for a loan), assign or otherwise encumber
shares held in the Plan.  If you wish to
pledge, assign or encumber Plan Shares, you must request that your Plan Shares
be removed from the Plan and registered in your name (see Question 27).

21.                               If Plan Shares
are transferred to another person, how will the Company document the transfer
on its books?

The
Administrator will remain the registered owner for the shares but the shares
will be credited to the transferee’s Plan Account.  If the transferee is not already a Plan
participant, the transfer will be accomplished as soon as the Administrator
receives a signed Enrollment Form (the transferee will be considered a
registered stockholder for purposes of enrollment whether or not he or she
owned shares of the Company’s common stock prior to the transfer).  Distributions on all shares transferred to
and held in the transferee’s Plan Account will be reinvested under the terms of
the Plan.

 8
 

 

22.                               How will a
transferee be advised of his or her stock ownership?

The
transferee will begin to receive Statements of Account just like other Plan
participants.

Taxes

23.                               What are the
income tax consequences of participation in the Plan?

The
Company believes the following to be an accurate summary of the federal income
tax consequences for Plan participants as of the effective date of this
Plan.  You are urged to consult with your
own tax advisor to determine the particular tax consequences that may result
from your participation in the Plan and the subsequent disposition by you of
shares of common stock purchased pursuant to the Plan.

(1)           Cash distributions reinvested under
the Plan are, in effect, treated for federal income tax purposes as having been
received in cash on the Distribution Payment Date even though they are used to
purchase additional shares of common stock.

(2)           The tax basis per share of shares of
common stock purchased under the Plan is the average purchase price per share
of the common stock as described in Question 16.

(3)           The holding period for shares of
common stock acquired with reinvested distributions will begin on the day
following the Distribution Payment Date on which the shares were credited to
your Plan Account (see Question 15).

(4)           You may realize a gain or loss if you
withdraw from the Plan and receive a cash payment for a fraction of a share
credited to your Plan Account.  The
amount of the gain or loss will be the difference between the amount you
receive for the fraction of a share and the tax basis attributable to the
fraction of a share, as defined in subsection (2) above.

24.                               How are income
tax withholding provisions applied to participants in the Plan?

If
you fail to furnish a valid taxpayer identification number to the Administrator
and to certify that you are not subject to backup withholding, then the
Administrator is required by law to withhold taxes from the amount of
distributions and the proceeds from any sale of your shares.  The withheld amount will be deducted from the
amount of distributions and the remaining amount of distributions
reinvested.  In the case of a sale, the
withheld amount will be deducted from the sale proceeds and the remaining
amount will be sent to you.

If
you are a non-U.S. stockholder whose distributions are subject to United States
income tax withholding, the amount of tax to be withheld will be deducted from
the amount of distributions and the remaining amount of distributions will be
reinvested.

 9
 

 

Reports to Participants

25.                               What kinds of
reports will be sent to participants in the Plan?

As
soon as practicable after each Distribution Payment Date, a summary statement
of your account will be mailed to you by the Administrator.  These statements are your continuing record
of current activity including the cost of your purchases and proceeds from your
sales in the Plan.  They also will
include the tax consequences of reinvestment, and should be retained for tax
purposes.  In addition, you will be sent
copies of other communications sent to holders of the Company’s common stock,
including the Company’s annual report, the notice of annual meeting, proxy
statement, and the information you will need for reporting your distribution
income for federal income tax purposes. 
If, after receiving and reviewing this information, you no longer wish
to participate in the Plan, you may withdraw from the Plan in accordance with
the terms set forth in Questions 27 and 28 below.

All
notices, statements and reports from the Administrator and Company to you will
be addressed to your latest address of record with the Administrator.  Therefore, you must promptly notify the
Administrator of any change of address. 
To be effective with respect to mailings of distribution checks, address
changes must be received by the Administrator prior to the Record Date for the
next Distribution Payment Date.

Certificates for Shares

26.                               Will
certificates be issued for shares purchased?

No.  Shares of our common stock purchased through
the Plan will be issued in book entry form only.  This means that we will not issue actual
share certificates to you or any holders of our common stock.  The use of book entry only registration
protects you against loss, theft or destruction of stock certificates and
reduces costs.  Shares of common stock
purchased through the Plan will be credited to your Plan Account under your
name, but they will not be registered in your name.  The number of shares of common stock credited
to your Plan Account will be shown on your statement of your account.

Termination of Participation

27.                               How does a
participant terminate participation in the Plan?

To
terminate your participation in the Plan, you must notify the Administrator
that you wish to do so.  Notice of
termination should be sent to the address set forth in Question 4.  To expedite your transaction request, please
use the tear-off stub and business reply envelope enclosed with your summary
statement.  Upon termination, you will
receive a check for the net proceeds from the sale of all fractional shares of common
stock held in your Plan Account.

On the termination date, the Administrator will convert to cash any
fractional shares held in your Plan Account at the same price that the shares
could be purchased through the Plan, calculated in accordance with Question 16
above, on the termination date.

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28.                               When may a
participant terminate participation in the Plan?

You
may request termination of your participation in the Plan at any time.  However, you should allow for several weeks
from the time you request termination until you receive a check for the net
proceeds of any fractional shares converted to cash, as described in Question
27.  Any distributions earned subsequent
to the effective date of your termination will be paid to you by check unless
you re-enroll in the Plan.

29.                               May an
individual’s participation be terminated by the Company or the Administrator?

The
Company reserves the right to terminate the participation of any participant
who, in the Company’s sole discretion, is abusing the Plan or causing undue
expense.  Also, as described in Question
19, a request to transfer shares, the transfer of which would result in less
than 25 shares remaining in your Plan Account, will be considered by the
Administrator to be a request to terminate participation in the Plan.  The Company also reserves the right to
terminate the Plan with respect to participants in one or more jurisdictions
(see Question 36).

Sales of Shares Registered
in your Name

30.                               What happens
when a participant sells or transfers all of the shares registered in the
participant’s name?

If
you sell or transfer all the shares registered in your name, the Administrator
will continue to reinvest any distributions received after your disposition of
the shares (for example, if the shares of common stock are disposed after the
Record Date and before the Distribution Payment Date), subject to your right to
withdraw from the Plan at any time. 
Also, the Administrator will continue to reinvest distributions on Plan
Shares held in your Plan Account.

31.                               What happens
when a participant sells or transfers some but not all of the shares registered
in the participant’s name?

If
you have elected the “Full Distribution Reinvestment” option described in
Question 2, and you transfer or sell a portion of the shares registered in your
name, then the Administrator will continue to reinvest the distributions on all
remaining shares registered in your name.

If
you have elected the “Partial Distribution Reinvestment” option described at
Question 2 by enrolling in the Plan only a portion of the shares you own, and you
transfer or sell a portion of the shares registered in your name, then the
Administrator will continue to reinvest the distributions on the remaining
shares registered in your name up to the number of shares originally enrolled
in the Plan.  For example, if you
requested the Company to enroll in the Plan 50 shares of the 100 shares
registered in your name, and then you transferred or sold 25 shares, the
Company would continue to reinvest the distributions on 50 shares.  If instead, you transferred or sold 75
shares, the Company would continue to reinvest the distributions on all of the
remaining 25 shares.  If you later
acquire additional shares registered in your name, those shares will
automatically be enrolled in the Plan (and their distributions reinvested) so
long as your total enrollment is less than your original enrollment request of
50.

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In
all cases, after a sale or transfer of shares registered in your name, the
Administrator will continue to reinvest distributions on Plan Shares held in
your Plan Account.

Other Information

32.                               If the Company
has a rights offering, how will the rights on the Plan Shares be handled?

You
will participate in any rights offering, based upon your total holdings of
whole shares, including whole shares enrolled in the Plan and whole shares
credited to your Plan Account.

33.                               What happens if
the Company issues a distribution payable in stock or declares a stock split?

Any
distribution payable in stock or split shares distributed by the Company on
shares enrolled in the Plan and on shares of common stock held in your Plan
Account will be credited to your account.

34.                               How will a
participant’s shares held by the Administrator be voted at stockholders’
meetings?

Shares
of common stock held by the Administrator for you will be voted as you
direct.  A proxy card will be sent to you
in connection with any annual or special meeting of stockholders, as in the
case of stockholders not participating in the Plan.  This proxy will apply to all whole shares
registered in your own name including those enrolled in the Plan, if any, as
well as to all whole shares credited to your account under the Plan and, if
properly signed, will be voted in accordance with the instructions that you
give on the proxy card.  If the proxy
card is not returned, or if it is returned unsigned by you, none of your shares
will be voted.

As
in the case of non-participating stockholders, if no instructions are indicated
on a properly signed and returned proxy card, all of your whole shares – those
shares registered in your name (including those enrolled in the Plan), and
those credited to your account under the Plan – will be voted in accordance
with the recommendation of the Company’s management.

35.                               What are the
responsibilities of the Administrator and the Company under the Plan?

Subject
to the limitations contained in the Company’s articles of incorporation, the Administrator
and the Company will not be liable under the Plan for any act done in good
faith or for any good faith omission to act, including, without limitation, any
claim of liability arising with respect to the prices or times at which shares
are purchased for you or from failure to terminate your Plan Account upon your
death or any change in the market value of the Company’s common stock.

You
should not assume that the Company will pay distributions or pay them in any
particular amount or on any particular date.

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You
should recognize that neither the Administrator nor the Company can assure you
of a profit or protect you against a loss on the shares of common stock
purchased by you under the Plan.

36.                               May the Plan be
changed or discontinued?

Notwithstanding
any other provisions of the Plan, the Company reserves the right to amend,
modify, suspend or terminate the Plan at any time, in whole or in part, or in
respect to participants in one or more jurisdictions, without prior notice to,
or the prior consent of, participants in the Plan.  Notice of any material amendment or
modification, or of any suspension or termination, will be mailed to all
affected participants following the date of such amendment, modification,
suspension or termination.

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