Document:

<PAGE>
                                                                     Exhibit 4.8

            AMENDMENT NO. 7 TO AMENDED AND RESTATED CREDIT AGREEMENT

      THIS AMENDMENT dated as of August 26, 2004, by and among the financial
institutions whose signatures appear below (individually a "Bank," collectively
the "Banks"), Comerica Bank, as Administrative Agent for the Banks (in such
capacity, "Agent"), and Olympic Steel, Inc., an Ohio corporation (the
"Company").

                                   RECITALS:

      A. Company, Agent and Comerica Bank, Fifth Third Bank, Standard Federal
Bank N.A., Fleet Capital Corporation and KeyBank National Association are
parties to that certain Amended and Restated Credit Agreement dated as of
December 30, 2002, as previously amended ("Credit Agreement").

      B. Company, the Banks and Agent desire to amend the Credit Agreement as
set forth below.

      NOW THEREFORE, the parties agree as follows:

      1. The definitions of "Letter of Credit Maximum Amount" and "Revolving
Credit Aggregate Commitment" set forth in Section 1.1 of the Credit Agreement
are amended to read as follows:

            "Letter of Credit Maximum Amount" shall mean Twenty Five Million
      Dollars ($25,000,000).

            "Revolving Credit Aggregate Commitment" shall mean One Hundred Ten
      Million Dollars ($11O,OOO,OOO) subject to reduction or termination under
      Section 2.13, 2.14 or 9.2 hereof.

      2. Schedule 1.2 of the Agreement is amended to read in the form annexed
hereto.

      3. The Obligations, as increased by this Amendment, continue to be secured
by the liens on and security interest in the Collateral under terms of the
Collateral Documents.

      4. Company agrees to pay to the Agent upon execution of this Amendment,
for the account of the Banks executing this Amendment, on a pro rate basis for
all such executing Banks, a non-refundable amendment fee equal to $50,000.

      5. Except as expressly modified hereby, all the terms and conditions of
the Credit Agreement shall remain in full force and effect.

      6. Company hereby represents and warrants that, after giving effect to the
amendments contained herein, (a) execution, delivery and performance of this
Amendment and any other documents and instruments required under this Amendment
or the Credit Agreement are within its corporate powers, have been duly
authorized, are not in contravention of law or the terms of its Articles of
Incorporation or Bylaws, and do not require the consent or approval of any
governmental body, agency, or authority; and this Amendment and any other
documents and

<PAGE>

instruments required under this Amendment or the Credit Agreement, will be valid
and binding in accordance with their terms; (b) the continuing representations
and warranties made by Company set forth in Sections 6.1 through 6.19 and 6.21
through 6.24 of the Credit Agreement are true and correct on and as of the date
hereof with the same force and effect as if made on and as of the date hereof;
(c) the continuing representations and warranties of Company set forth in
Section 6.20 of the Credit Agreement are true and correct as of the date hereof
with respect to the most recent financial statements furnished to the Bank by
Company in accordance with Section 7.l of the Credit Agreement; and (d) no
Default or Event of Default has occurred and is continuing as of the date
hereof.

      7. Capitalized terms used but not defined herein shall have the meaning
set forth in the Credit Agreement.

      8. This Amendment may be signed in counterparts.

      9. This Amendment shall become effective (according to the terms and as of
the date hereof) upon satisfaction by Company of the following conditions:

            (a) Agent shall have received counterpart originals of this
      Amendment, in each case duly executed and delivered by Company, the Agent,
      the Banks, and the Guarantors and originals of the Loan Documents
      identified on the Closing Agenda annexed hereto duly executed by the
      parties thereto and, where applicable, in recordable form; and

            (b) Company shall have paid to the Agent for the benefit of the
      Banks the fee required in Paragraph 4, above.

                     [REMAINDER OF PAGE INTENTIONALLY BLANK]

<PAGE>

      WITNESS THE DUE EXECUTION HEREOF AS OF THE DAY AND YEAR FIRST ABOVE
WRITTEN.

COMERICA BANK,                           OLYMPIC STEEL, INC.
as Agent

By:                                      By:
   ------------------------------------     ------------------------------------

Its:                                     Its:
    -----------------------------------      -----------------------------------

SWING LINE BANK:                         COMERICA BANK

                                         By:
                                            ------------------------------------

                                         Its:
                                             -----------------------------------

ISSUING BANK:                            COMERICA BANK

                                         By:
                                            ------------------------------------

                                         Its:
                                             -----------------------------------

BANKS:                                   COMERICA BANK

                                         By:
                                            ------------------------------------

                                         Its:
                                             -----------------------------------

                                         STANDARD FEDERAL BANK N.A.

                                         By:
                                            ------------------------------------

                                         Its:
                                             -----------------------------------

<PAGE>

                                         FIFTH THIRD BANK

                                         By:
                                            ------------------------------------

                                         Its:
                                             -----------------------------------

                                         FLEET CAPITAL CORPORATION

                                         By:
                                            ------------------------------------

                                         Its:
                                             -----------------------------------

                                         KEYBANK NATIONAL ASSOCIATION

                                         By:
                                            ------------------------------------

                                         Its:
                                             -----------------------------------

<PAGE>

      Acknowledged by the undersigned Guarantor as of August __, 2004.

                                         GUARANTORS:

                                         OLYMPIC STEEL LAFAYETTE, INC.

                                         By:
                                            ------------------------------------

                                         Its:
                                             -----------------------------------

                                         OLYMPIC STEEL MINNEAPOLIS, INC.

                                         By:
                                            ------------------------------------

                                         Its:
                                             -----------------------------------

                                         OLYMPIC STEEL IOWA, INC.

                                         By:
                                            ------------------------------------

                                         Its:
                                             -----------------------------------

                                         OLY STEEL WELDING, INC.

                                         By:
                                            ------------------------------------

                                         Its:
                                             -----------------------------------

                                         OLYMPIC STEEL RECEIVABLES, L.L.C.

                                         By:
                                            ------------------------------------

                                         Its:
                                             -----------------------------------Exhibit 10.1

  

 

 

AMENDED AND
RESTATED REVOLVING CREDIT

AGREEMENT

(With Letter of
Credit Facility)

between

Bank of America, N.A. 

as Administrative
Agent

JPMorgan Chase Bank

as Documentation
Agent

The Lenders named
herein,

as Lenders

and

Alamo Group Inc.

as Borrower

August 25, 2004

THIS AGREEMENT IS
SUBJECT TO BINDING ARBITRATION, GOVERNED

BY SECTION 12.22.

 

 

 

 

Banc of America
Securities LLC,

as Sole Lead
Arranger and Book Manager

 

	

TABLE OF CONTENTS

			

 
	
 	
Page

		
	ARTICLE I DEFINITION OF TERMS........................................................................................................	1
	1.01....... Defined Terms................................................................................................................................	1
	1.02....... Other Definitional Provisions....................................................................................................
			12
	1.03....... Letter of Credit Amounts.............................................................................................................
			13
	1.04....... Additional Alternative Currencies............................................................................................
			13
	ARTICLE 2 THE REVOLVING CREDIT LOAN.....................................................................................
			13
	2.01....... Revolving Credit Commitments..................................................................................................
			13
	2.02....... Letter of Credit..............................................................................................................................
			17
	2.03....... Manner of Borrowing; Selection of Interest
Option............................................................... 
			22
	2.04....... Loan Fees........................................................................................................................................
			24
	2.05....... Interest Rate...................................................................................................................................
			24
	ARTICLE 3.....................................................................................................................................................
			26
	ARTICLE 4
NOTES AND NOTE PAYMENTS; GUARANTIES.................................................................
			26
	4.01....... Revolving Credit Notes.................................................................................................................
			26
	4.02....... Swing Line Notes..........................................................................................................................
			26
	4.03....... Principal Payments.......................................................................................................................
			26
	4.04....... Prepayments...................................................................................................................................
			26
	4.05....... Payment of Interest on the Notes................................................................................................
			27
	4.06....... Computation of Interest Rates....................................................................................................
			27
	4.07....... Manner and Application of Payments........................................................................................
			27
	4.08....... Lending Office...............................................................................................................................
			28
	4.09....... Taxes................................................................................................................................................
			28
	4.10....... Guaranties......................................................................................................................................
			28
	4.11....... Sharing of Payments by Lenders...............................................................................................
			28
	4.12....... Obligations of Lenders Several..................................................................................................
			29
	ARTICLE 5
SPECIAL PROVISIONS FOR EURODOLLAR ADVANCES..............................................
			29
	5.01....... Special Provisions for Eurodollar Advance..............................................................................
			29
	ARTICLE 6
REPRESENTATION AND WARRANTIES..............................................................................
			30
	6.01....... Organization and Good Standing...............................................................................................
			30
	6.02....... Authorization and Power.............................................................................................................
			30
	6.03....... No Conflicts or Consents.............................................................................................................
			30
	6.04....... Enforceable Obligations...............................................................................................................
			31
	6.05....... No Liens..........................................................................................................................................
			31
	6.06....... Financial Condition.......................................................................................................................
			31
	6.07....... Full Disclosure..............................................................................................................................
			31
	6.08....... No Default.......................................................................................................................................
			31
	6.09....... Material Agreements...................................................................................................................
			31
	6.10....... Pending Litigation........................................................................................................................
			31
	6.11....... Regulatory Defects.......................................................................................................................
			31
	6.12....... Use of Proceeds; Margin Stock..................................................................................................
			31
	6.13....... No Financing of Corporate Takeovers......................................................................................
			32
	6.14....... Taxes................................................................................................................................................
			32
	6.15....... Principal Office, Etc.....................................................................................................................
			32
	6.16....... Compliance with Law....................................................................................................................
			32
	6.17....... Government Regulation...............................................................................................................
			32
	6.18....... Insider.............................................................................................................................................
			32
	6.19....... No Subsidiaries.............................................................................................................................
			32
	6.20....... Representations and Warranties...............................................................................................
			32
	6.21....... Survival of Representations, Etc.................................................................................................
			32

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

i

	 	 
	ARTICLE 7
CONDITIONS PRECEDENT......................................................................................................................
			33
	7.01....... Initial Advances.............................................................................................................................
			33
	7.02....... All Advances...................................................................................................................................	 33
	ARTICLE 8
AFFIRMATIVE COVENANTS...................................................................................................................
			34
	8.01....... Financial Statements, Reports and Documents.......................................................................
			34
	8.02....... Payment of Taxes and Other Indebtedness...............................................................................
			35
	8.03....... Maintenance of Existence and Rights; Conduct of
Business................................................ 	35
	8.04....... Notice of Default............................................................................................................................
			35
	8.05....... Other Notices.................................................................................................................................
			35
	8.06....... Compliance with Loan Documents.............................................................................................
			36
	8.07....... Compliance with Material Agreements....................................................................................
			36
	8.08....... Operations and Properties..........................................................................................................
			36
	8.09....... Books and Records; Access........................................................................................................
			36
	8.10....... Compliance with Law....................................................................................................................
			36
	8.11....... Insurance........................................................................................................................................
			36
	8.12....... Authorizations and Approvals.....................................................................................................
			36
	8.13....... Further Assurances.....................................................................................................................
			36
	8.14....... Minimum Fixed Charge Coverage Ratio...................................................................................
			37
	8.15....... Minimum Consolidated Tangible Net Worth...........................................................................
			37
	8.16....... Consolidated Funded Debt to EBITDA Ratio............................................................................
			37
	8.17....... ERISA Compliance........................................................................................................................
			37
	8.18....... Minimum Asset Coverage Ratio.................................................................................................
			37
	ARTICLE 9
NEGATIVE COVENANTS OF OBLIGATED GROUP...........................................................
			37
	9.01....... Limitation on Indebtedness..........................................................................................................
			37
	9.02....... Negative Pledge.............................................................................................................................
			38
	9.03....... Limitation on Investments...........................................................................................................
			38
	9.04....... Repurchase of Shares..................................................................................................................
			38
	9.05....... Limitations on Sale of Properties..............................................................................................
			38
	9.06....... Fiscal Year and Accounting Method..........................................................................................
			38
	9.07....... Liquidation. Mergers. Consolidations and
Dispositions of Substantial Assets................ 	38
	9.08....... Lines of Business..........................................................................................................................
			39
	9.09....... Guaranties......................................................................................................................................
			39
	9.11....... Limitation of Liens........................................................................................................................
			39
	9.12....... Limitation on Acquisitions..........................................................................................................
			39
	9.13....... Limitation on Capital Expenditures...........................................................................................
			39
	ARTICLE 10
EVENTS OF DEFAULT................................................................................................................................
			39
	10.01..... Events of Default............................................................................................................................
			39
	10.02..... Remedies Upon Event of Default.................................................................................................
			40
	10.03..... Performance by Lender................................................................................................................
			40
	ARTICLE 11
AGENT............................................................................................................................................................
			41
	11.01..... Appointment and Authority.........................................................................................................
			41
	11.02..... Rights as a Lender........................................................................................................................
			41
	11.03..... Exculpatory Provisions.................................................................................................................
			41
	11.04..... Reliance by Administrative Agent.............................................................................................
			42
	11.05..... Delegation of Duties.....................................................................................................................
			42
	11.06..... Resignation of Administrative Agent........................................................................................
			42
	11.07..... Non-Reliance on Administrative Agent and Other
Lenders................................................. 	43
	11.08..... Administrative Agent May File Proofs of Claim.....................................................................
			43
	11.09..... Guaranty Matters..........................................................................................................................
			43
	11.10..... Agents.............................................................................................................................................
			43

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

ii

 

	ARTICLE 12
MISCELLANEOUS.......................................................................................................................................
			43
	12.01..... Modification....................................................................................................................................
			44
	12.02..... Accounting Terms and Reports..................................................................................................
			44
	12.03..... Waiver.............................................................................................................................................
			44
	12.04..... Payment of Expenses.....................................................................................................................
			44
	12.05..... Notices.............................................................................................................................................
			45
	12.06..... Governing Law...............................................................................................................................
			46
	12.07..... Choice of Forum; Consent to Service of Process....................................................................
			46
	12.08..... Invalid Provisions..........................................................................................................................
			47
	12.09..... Maximum Interest Rate................................................................................................................
			47
	12.10..... Successors and Assigns and Participants...............................................................................
			47
	12.11..... Article 15.10(b).............................................................................................................................
			49
	12.12..... Entirety............................................................................................................................................
			49
	12.13..... Headings.........................................................................................................................................
			49
	12.14..... Survival...........................................................................................................................................
			49
	12.15..... No Third Party Beneficiary.........................................................................................................
			49
	12.16..... Expenses; Indemnity; Damage Waiver......................................................................................
			49
	12.17..... Multiple Counterparts..................................................................................................................
			50
	12.18..... Survival of Representations and Warranties...........................................................................
			50
	12.19..... USA PATRIOT Act Notice..........................................................................................................
			51
	12.20..... Setoff................................................................................................................................................
			51
	12.21..... No Oral Agreements....................................................................................................................
			51
	12.22..... Arbitration and Waiver of Jury Trial........................................................................................
			51
	12.23..... Restatement of Prior Loan Agreement.....................................................................................
			52

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

iii

AMENDED AND
RESTATED REVOLVING CREDIT AGREEMENT

(With Letter of
Credit Facility)

This Amended and
Restated Revolving Credit Agreement (the "Loan Agreement") is
entered into effective the 25th day of August, 2004, by and among ALAMO GROUP
INC., a Delaware corporation (the "Company"), the Guarantors (as
defined below), the Lenders (as defined below), Bank of America, N.A., a
national banking association, as agent for the Lenders ("Administrative
Agent"), Banc of America Securities L.L.C., as Sole Lead Arranger and
Book Manager, and JPMorgan Chase Bank, as Documentation Agent.

W I T N E S S E T H:

A.            The
Company and Administrative Agent previously put into place a $45,000,000 loan
facility pursuant to the Third Amended and Restated Revolving Credit and
Term Loan Agreement, dated December 29, 1995, which was previously amended
by the First Amendment, effective April 10, 1996; the Second Amendment,
effective December 23, 1996; the Third Amendment, effective June 23, 1997;
the Fourth Amendment, effective December 31, 1997; the Fifth Amendment,
effective December 31, 1998; and the Sixth Amendment, effective March 30, 2001
(the Third Amended and Restated Revolving Credit and Term Loan Agreement,
as amended, is referred to herein as the "Original Loan Agreement").

B.            On
August 31, 2001, the Company, Administrative Agent, the Guarantors defined
therein, and the lenders party thereto entered into the Revolving Credit
Agreement (With Letter of Credit Facility) (as amended, modified, restated,
renewed, or replaced prior to the date hereof, the "Existing Loan
Agreement") to refinance existing indebtedness of the Company
including, without limitation, the outstanding loans under the Original Loan
Agreement.

C.            The
Company has requested that Lenders make available under this facility
$70,000,000, and give the Company the option to expand the facility by
$30,000,000, to $100,000,000, at the Company's election and pursuant to the
terms of this Agreement.

D.            This
credit facility is available to refinance the outstanding loans made pursuant
to the Existing Loan Agreement and for general working capital purposes,
capital expenditures, acquisitions permitted in this Agreement and other lawful
corporate purposes.

E.             Each
Guarantor (as hereinafter defined) is a wholly-owned subsidiary or an Affiliate
of the Company and will derive direct and indirect economic benefits from the
loan contemplated hereby;

NOW, THEREFORE,
in consideration of the mutual promises herein contained and for other valuable
consideration, the Company, each other member of the Obligated Group
(hereinafter defined), and Lenders  agree as follows:

ARTICLE 1

DEFINITION OF TERMS

1.01.      
Defined
Terms.  For the purposes of this Loan
Agreement, unless the context otherwise requires, the following terms shall
have the respective meanings assigned to them in this Article 1 or in
the section referred to below:

"Accounts
Receivable" means all present and future (i) accounts, receivables,
contract rights, chattel paper, documents, tax refunds, or payments of, or
owned by, Company or any Consolidated Subsidiary; (ii) insurance proceeds,
patent rights, license rights, rights to refunds or indemnification, and other
general intangibles of every kind or nature of, or owned by, Company or any
Subsidiary; and (iii) all forms of obligations whatsoever owing to Company or
any Consolidated Subsidiary, together with all instruments and all documents of
title representing any of the foregoing and all right, title, and interest in,
and all securities and guaranties with respect to, each Account Receivable.

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

1

 

"Accumulated
Other Comprehensive Income" means accumulated other comprehensive
income as calculated in accordance with GAAP.

"Acquisition"
means to acquire title to the stock or other equity interest, or the assets
(including intellectual property), of an operating business.

"Administrative
Agent" means Bank of America, N.A., and its permitted successors or
assigns as "Administrative Agent" for Lenders under the Loan Documents.

"Administrative
Agent's Office" means Administrative Agent's address as set forth in
Section
12.05, or such other address as Administrative Agent may from time to time
notify to the Company and the Lenders.

"Administrative
Fee":  Section 2.04.

"Administrative
Questionnaire" means an Administrative Questionnaire in a form supplied
by Administrative Agent.

"Advance": 
Section 2.01(a).

"Affiliate"
of any Person means any Person which, directly or indirectly, controls, is
controlled by, or is under common control with, such Person. For the purposes
of this definition, "control" (including the terms "controlled by" and "under
common control with"), as used with respect to any Person, means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, whether through the
ownership of Voting Shares or by contract or otherwise. 

"Alternative
Currency" means Australian Dollars and each other currency (other than
Dollars) that is approved in accordance with Section 1.04. 

"Alternative
Currency Equivalent" means, at any time, with respect to any amount
denominated in Dollars, the equivalent amount thereof in the applicable
Alternative Currency as determined by Administrative Agent at such time on the
basis of the Spot Rate (determined in respect of the most recent Revaluation
Date) for the purchase of such Alternative Currency with Dollars.

"Applicable
Margin":  Section 2.05(d).

"Applicable
Time" means, with respect to any borrowings and payments in any
Alternative Currency, the local time in the place of settlement for such
Alternative Currency as may be determined by Administrative Agent to be
necessary for timely settlement on the relevant date in accordance with normal
banking procedures in the place of payment.

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

"Arranger"
means Banc of America Securities LLC, and its successors and assigns, in its
capacity as sole lead arranger and book manager under the Loan Documents.

"Asset
Coverage Ratio" means, as of any date of determination, a ratio of the
sum of cash and Cash Equivalent Investments, Accounts Receivable, Inventory,
and Net PP&E to total Consolidated Funded Debt.

"Assignment
and Assumption" means an assignment and assumption entered into by a
Lender and an assignee pursuant to Section 12.10, and accepted by
Administrative Agent, in substantially the form of Exhibit L. 

"Bank of
America" means Bank of America, N.A. and its successors.

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

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

2

 

"Borrowing"
means any amount disbursed by any Lender under the Loan Documents, whether such
amount constitutes an original disbursement of funds, the continuation of an amount
outstanding, or payment of a draft under a Letter of Credit.

"Capital
Expenditures" means any expenditure by the Company or any
Consolidated Subsidiary for an asset that will be used in the year, or a year
subsequent to the year, in which the expenditure is made, and which asset is
properly classifiable in relevant financial statements of such Person as
property, equipment or improvements, fixed assets, or a similar type of
capitalized asset in accordance with GAAP.

"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, corporate demand notes or other
debt securities having a maturity or tender right less than one year from the
date of issuance thereof, in each case rated in one of the two highest rating
categories by Standard & Poor's Ratings Group or Moody's Investors Service,
Inc., (c) any certificate of deposit (or time deposits represented by such
certificates of deposit) or bankers acceptance, maturing not more than one year
after such time, or overnight Federal Funds transactions that are issued or
sold 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
bank (or other commercial banking institution of the stature 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)
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 bank (or other
commercial banking institution) thereunder and (e) investments in short-term
asset management accounts offered by any bank for the purpose of investing in
loans to any corporation (other than the Company or an affiliate of the
Company), state or municipality, in each case organized under the laws of any
state of the United States or of the District of Columbia.

"Cash
Taxes" means for the Company and its Consolidated Subsidiaries
for any period, Taxes paid or due and payable by them during such period.

"Closing
Date" or "Closing" means the date upon which this
Agreement has been executed by the Company, Lenders and Administrative Agent
and all conditions precedent specified in Article 7 have been satisfied
or waived.

"Commitments"
means the Revolving Credit Commitment of Lenders to provide the financing
hereunder.

"Commitment
Fee" means any of the non-refundable fee payable as described in Section 2.04(a).

"Company"
shall have the meaning set forth in the preamble.

"Consolidated
Funded Debt" means, for any period, for the Company and its
Consolidated Subsidiaries, on a consolidated basis, the sum of (a) the
outstanding principal amount of all Indebtedness for Borrowed Money, whether
current or long-term, (including the Obligation), (b) the portion of
obligations with respect to capital leases that are capitalized in the
consolidated balance sheet of the Company and its Consolidated Subsidiaries,
and (c) without duplication, all Guaranties with respect to outstanding
principal amounts of Indebtedness of the type specified in subsections (a)
and (b) above of  Persons other than the Company or any Consolidated
Subsidiary.

"Consequential
Loss" means, with respect to the Company's payment of all or any
portion of the then outstanding principal amount of Lenders' Eurodollar Advance
on a day other than the last day of the Interest Period related thereto, any
loss, cost or expense incurred by any Lender as a result of the timing of the
payment or in redepositing the principal amount, including the sum of
(i) the interest which, but for the payment, any Lender would have earned
in respect of the principal amount so paid, for the remainder of the Interest
Period applicable to that sum, reduced, if any Lender is able to redeposit the
principal amount so paid for the balance of that Interest Period, by the
interest earned by  Lender as a result of so redepositing that principal
amount, plus (ii) any expense or penalty incurred by any Lender on
redepositing that principal amount.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

3

 

"Consolidated
Subsidiaries" means the entities listed on the attached Exhibit G
and any other Subsidiary included as of the date in question in the
consolidated financial statements of the Company, and "Consolidated
Subsidiary" means any one of the Consolidated Subsidiaries.

"Consolidated
Tangible Net Worth" means, as of any date, the total shareholder's
equity (including capital stock, additional paid-in capital and retained
earnings after deducting treasury stock) which would appear on a consolidated
balance sheet of the Company and its Consolidated Subsidiaries prepared as of
such date in accordance with GAAP, less the aggregate book value of Intangible
Assets shown on such balance sheet; provided however, that Consolidated
Tangible Net Worth shall exclude Accumulated Other Comprehensive Income.

"Consolidated
Total Liabilities" means, as of any date, the total liabilities that
would be reflected on the consolidated balance sheet of the Company, prepared
as of such date in accordance with GAAP.

"Documentation
Agent" means JPMorgan Chase Bank and its permitted successors and
assigns as "Documentation Agent" under this Loan Agreement.

"Dollar"
and the sign "$" means lawful currency 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 Alternative Currency, the equivalent amount thereof in
Dollars as determined by Administrative Agent at such time on the basis of the
Spot Rate (determined in respect of the most recent Revaluation Date) for the
purchase of Dollars with such Alternative Currency.

"Eligible
Assignee" means (a) a Lender; (b) an Affiliate of a Lender; (c) an
Approved Fund; and (d) any other Person (other than a natural person) approved
by (i) Administrative Agent, and (ii) unless an Event of Default has occurred
and is continuing, the Company (each such approval not to be unreasonably
withheld or delayed); provided that notwithstanding the foregoing, "Eligible
Assignee" shall not include the Company or any of the Company's
Affiliates or Subsidiaries.

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

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

"Equity
Issuance" means the issuance by any member of the Obligated Group of
any shares of any class of stock, warrants, or other equity interests.

"Eurodollar
Advance" means any principal amount under a Revolving Credit Note  with
respect to which the interest rate is computed by reference to the Eurodollar
Rate for a particular Interest Period.

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

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

4

"Event of
Default":  Article 10.

"Excess
Interest Amount":  Section 4.05(c).

"Existing
Letters of Credit" means the Letters of Credit issued at the Company's
request under and pursuant to the Existing Loan Agreement, and "Existing
Letter of Credit" means any one of such Existing Letters of Credit.  A
description of the Existing Letters of Credit as of the Closing Date is
contained in Exhibit O.

"Facility
Fee":  Section 2.04(d).

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

"Financial
Hedge" means a swap, collar, floor, cap, or other contract entered into
by any member of the Obligated Group with any Lender or an Affiliate of any
Lender or another Person reasonably acceptable to Administrative Agent under
the laws of a jurisdiction in which such contracts are legal and enforceable
(except as enforceability may be limited by applicable debtor relief laws and
general principles of equity), which is intended to reduce or eliminate the
risk of fluctuations in interest rates.

"Fiscal
Year" means the calendar year, January 1-December 31, of each year
during the term hereof.

"Fixed
Charge Coverage Ratio" means, for any period for the Company and its
Consolidated Subsidiaries, the ratio of (1) the sum of
(a) Operating Cash Flow, plus (b) lease and rent expenses, (c)
minus Maintenance Capital Expenditures in the amount of $4,000,000, minus
(d) Cash Taxes, minus (e) dividends paid in cash by the Company to its
shareholders, to (2) the sum of (a) Interest Expense, plus
(b) principal payments made with respect to Indebtedness for Borrowed
Money (excluding principal payments made with respect to the Obligation), plus
(c) lease and rent expenses, each for the twelve (12) month period ended as of
the date of determination.

"Foreign
Subsidiary" means any Subsidiary not organized under a political
subdivision of the United States.

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

"Generally
Accepted Accounting Principles or GAAP" means those generally accepted
accounting principles and practices which are recognized as such by the
American Institute of Certified Public Accountants acting through its
Accounting Principles Board or by the Financial Accounting Standards Board or
through other appropriate boards or committees thereof and which are
consistently applied for all periods after the date hereof so as to properly
reflect the financial condition, and the results of operations and changes in
financial position, of the Company and its Consolidated Subsidiaries, except
that any accounting principle or practice required to be changed by the said
Accounting Principles Board or Financial Accounting Standards Board (or other
appropriate board or committee of the said Boards) in order to continue as a
generally accepted accounting principle or practice may be so changed.

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

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

5

 

"Guarantors": 
Section 4.10.

"Guaranty"
of any Person means any contract, agreement or understanding of such Person
pursuant to which such Person guarantees, or in effect guarantees, any
Indebtedness of any other Person (the "Primary Obligor") in any
manner, whether directly or indirectly, including without limitation
agreements:

(1)       to purchase such Indebtedness or any property constituting
security therefor;

(2)       to advance or supply funds (a) for the purchase or Payment
of such Indebtedness, or (b) to maintain working capital or other balance sheet
conditions, or otherwise to advance or make available funds for the purchase or
payment of such Indebtedness;

(3)        to purchase property, securities or services primarily for
the purpose of assuring the holder of such Indebtedness of the ability of the
Primary Obligor to make payment of the Indebtedness; or

(4)        otherwise to assure the holder of the Indebtedness of the
Primary Obligor against loss in respect thereof;

except that "Guaranty"
shall not include the endorsement by the Company or a Subsidiary in the
ordinary course of business of negotiable instruments or documents for deposit
or collection.

"Guaranty
Agreement": Section 4.10.

"Hazardous
Materials" means all explosive or radioactive substances or wastes and
all hazardous or toxic substances, wastes or other pollutants, including
petroleum or petroleum distillates, asbestos or asbestos-containing materials,
polychlorinated biphenyls, radon gas, infectious or medical wastes and all
other substances or wastes of any nature regulated pursuant to any
Environmental Law.

"Indebtedness"
means, with respect to any Person, all indebtedness, obligations and
liabilities of such Person, as determined by GAAP, including, without
limitation, obligations under capitalized leases.

"Indebtedness
For Borrowed Money" means, as of any date with respect to the Company
and its Consolidated Subsidiaries, (i) all Indebtedness represented by
notes, bonds, debentures or other evidences of indebtedness, for the repayment
of money borrowed, (ii) all Indebtedness representing deferred payment of
the purchase price of property, (iii) all Indebtedness under any capital
lease, (iv) all Indebtedness under any Guaranty, and (v) all Indebtedness
secured by a Lien on any property or asset. 

"Intangible
Assets" of any Person means those assets of such Person which are (i)
deferred assets, other than prepaid insurance and prepaid taxes; (ii) patents,
copyrights, trademarks, franchises, goodwill, experimental expenses and other
similar assets which would be classified as intangible assets on a balance
sheet of such Person, prepared in accordance with GAAP; and (iii) unamortized
debt discount and expense.

"Interest
Expense" means, for the Company and its Consolidated Subsidiaries for
any period, total interest expense in respect of Consolidated Total Liabilities
payable during such period, including, without limitation, all commissions,
discounts, and other fees and charges with respect to letters of credit, all as
determined in accordance with GAAP.

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

6

"Interest
Period" means a period commencing:

(i)            on
the borrowing date made pursuant to Section 2.01 of this Loan Agreement;
or 

(ii)           on
the Conversion Date, if the Eurodollar Advance is made pursuant to a conversion
as described in Section 2.03(c); or

(iii)          on
the date of borrowing specified in the Request For Advance in the case of a
rollover to a successive Interest Period,

and ending one, two, three, or
six months thereafter as the Company shall elect in accordance with Section 2.03(c);
provided, that:

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

(B)           any
Interest Period that begins on the last Business Day of a calendar month (or on
a day for which there is no numerically corresponding day in the calendar month
or at the end of such Interest Period) shall, subject to clause (A) above, end
on the last Business Day of a calendar month; 

(C)           if
the Interest Period for any Eurodollar Advance would otherwise end after the
Termination Date, that Interest Period shall end on the Termination Date; and

(D)          no
more than an aggregate of five (5) Interest Periods shall be in effect at one
time.

"Investment"
in any Person means any investment, whether by means of share purchase (other
than a stock-for-stock exchange), loan, advance, extension of credit, capital
contribution (other than via the issuance of stock of the Company) or
otherwise, in or to such Person.

"Inventory"
means all inventory that is owned by the Company and its Consolidated Subsidiaries
and is located at the Company's places of business or other inventory locations
acceptable to Administrative Agent, and that, in Administrative Agent's
reasonable opinion, is in good and salable condition and is not obsolete or
unmerchantable and that Administrative Agent, in its reasonable judgment, deems
to be eligible Inventory, based on the credit and collateral considerations
that Lender customarily may deem appropriate.  Inventory shall not include
goods or materials that are (a) not in good condition, (b) not in
conformance with all applicable standards imposed by any Governmental
Authority, (c) not currently usable or salable in the normal course of
business of the Company, or (d) damaged in shipment, (e) returned from
customers as defective merchandise.

"ISP"
means, with respect to any Letter of Credit, the "International Standby
Practices 1998" published by the Institute of International Banking Law &
Practice (or such later version thereof as may be in effect at the time of
issuance).

"Issuer
Documents" means with respect to any Letter of Credit, the Letter
Credit Application, and any other document, agreement and instrument entered
into by Administrative Agent and the Company or in favor Administrative Agent
and relating to any such Letter of Credit.

"Lending
Office" means Administrative Agent's office located at
300 Convent, P.O. Box 300, San Antonio, Texas  78291, or such
other office as Administrative Agent may hereafter designate as its Lending
Office in a written notice to the Company.

"Lender(s)"
means Guaranty Bank, a federally chartered savings bank ("Guaranty Bank"),
JPMorgan Chase Bank ("Chase Bank"), and Administrative Agent.

"Letters
of Credit" means any commercial or standby letters of credit issued by
Lenders for the account of the Company under this Loan Agreement.

"Letter of
Credit Borrowing" means an extension of credit resulting from a drawing
under any Letter of Credit which has not been reimbursed on the date when made
or refinanced as a Prime Rate Advance.

"Letter of
Credit Expiration Date" means the day that is seven (7) days prior to
the Termination Date (or, if such day is not a Business Day, the next preceding
Business Day).

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

7

"Letter of
Credit Exposure" means, as of any date of determination, the aggregate
amount available to be drawn under all outstanding Letters of Credit plus the
aggregate of all Unreimbursed Amounts, including all Letter of Credit
Borrowings.  For purposes of computing the amount available to be drawn under
any Letter of Credit, the amount of such Letter of Credit shall be determined
in accordance with Section 1.03.  For all purposes of this Loan
Agreement, if on any date of determination a Letter of Credit has expired by
its terms but any amount may still be drawn thereunder by reason of the
operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be
"outstanding" in the amount so remaining available to be drawn.

"Letter of
Credit Subfacility" means a subfacility of the Revolver Facility for
the issuance of Letters of Credit as described in and subject to the
limitations of Section 2.01(c), under which the Letter of Credit
Exposure may never collectively exceed $7,500,000.

"Leverage
Ratio":  Section 8.16.

"Lien"
means any lien, mortgage, security interest, tax lien, pledge encumbrance,
conditional sale or title retention arrangement, or any other interest in
property designed to secure the repayment of Indebtedness, whether arising by
agreement or under any statute or law, or otherwise.

"Loan"
means the Revolving Credit Loan, the Letters of Credit, and the Swing Line
Loan.

"Loan
Documents" means (a) this Loan Agreement, the Notes , the Letter of
Credit, the guaranties, (b) all agreements, certificates, documents or
instruments in favor of Administrative Agent or Lenders ever delivered pursuant
to this Loan Agreement or otherwise delivered in connection with all or any
part of the obligation.

"Loan
Parties" means, on any date of determination, the Company and all
Guarantors.

"Loan Year"
means each January 1- December 31 during the term hereof.  

"Maintenance
Capital Expenditures" means capital expenditures incurred by the
Company or its Consolidated Subsidiaries in connection with the replacement of
maintenance equipment or other fixed assets of the Company or of its Consolidated
Subsidiaries.  

"Material
Adverse Effect" means any circumstance or event which (i) could have
any adverse effect whatsoever upon the validity, performance or enforceability
of any Loan Documents, is or might be material and adverse to the financial
condition or business operations of the Company and its Consolidated
Subsidiaries, (iii) could impair the ability of the Company to satisfy its
obligations under the Loan Documents, or (iv) causes an Event of Default or any
event which, with notice or lapse of time or both, could become an Event of
Default.

"Maximum
Rate" means, on any day, the highest nonusurious rate of interest (if
any) permitted by applicable law on that day.  Administrative Agent and each
Lender hereby notify the Company that, and disclose to the Company that, for
purposes of Texas Finance Code § 303.001, as it may from time to time be
amended, the "applicable rate ceiling" shall be the "weekly"
ceiling from time to time in effect as limited by Texas Finance Code §
303.009; provided, however, that to the extent permitted by
applicable law, Administrative Agent and each Lender reserves the right to
change the "applicable rate ceiling" from time to time by further notice
and disclosure to the Company; and, provided further, that the "highest
nonusurious rate of interest permitted by applicable law" for purposes of
this Loan Agreement and the Notes is not limited to the applicable rate ceiling
under Texas Finance Code § 303 if federal laws or other state laws now
or hereafter in effect and applicable to this Loan Agreement, and the Notes
(and the interest contracted for, charged and collected hereunder or
thereunder) permit a higher rate of interest.

"Net Cash
Proceeds" means, with respect to any Equity Issuance, cash (in
or freely convertible into  Dollars) (including any cash received by way of
deferred payment pursuant to a promissory note, or otherwise, but only as and
when received) received, on or after the date of the Equity Issuance, by any
member of the Obligated Group from the Equity Issuance, net of usual and
customary transaction costs and expenses.

"Net
Income"  means, with respect to the Company and its Consolidated
Subsidiaries for any period, the net income (or loss) of the Company and its
Consolidated Subsidiaries for that period.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

8

"Net
PP&E" means property, plant and equipment of the Company and its
Consolidated Subsidiaries determined in accordance with GAAP.

"New
Indebtedness": Section 9.01.

"Notes"
means the Revolving Credit Notes and Swing Line Note executed by the Company
and delivered pursuant to the terms of this Loan Agreement, together with any
renewals, extensions or modifications thereof.  "Note" means any
of the Notes.

"Obligated
Group" means the Company, Alamo Capital Inc., a Nevada corporation;
Alamo Group (IA) Inc., a Nevada corporation; Alamo Group (KS) Inc., a Kansas
corporation; Alamo Group (SMC) Inc., a Nevada corporation; Alamo Group (TX)
L.P., a Delaware limited partnership;  Alamo Group (USA) Inc., a Delaware
corporation; Alamo Group Holdings, L.L.C., a Delaware limited liability
company; Alamo Sales Corp., a Delaware corporation; Herschel Adams Inc., a
Nevada corporation; M&W Gear Company, a Delaware corporation; Schulte (USA)
Inc., a Florida corporation; Schwarze Industries, Inc., an Alabama corporation;
Tiger Corporation, a Nevada corporation, Alamo Group Services Inc., a Delaware
corporation, and any such other Person that the Company requests be included in
the Obligated Group on the prior written approval of the Required Lenders,
which approval shall not be unreasonably withheld.

"Obligation"
means all present and future indebtedness, obligations, and liabilities of the
Company to Lenders or any of them, and all renewals and extensions thereof, or
any part thereof, arising pursuant to this Loan Agreement or represented by the
Notes, and all interest accruing thereon, and reasonable attorneys' fees
incurred in the enforcement or collection thereof, regardless of whether such
indebtedness, obligations and liabilities are direct, indirect, fixed,
contingent, joint, several or joint and several; together with all
indebtedness, obligations and liabilities of the Company evidenced or arising
pursuant to any of the other Loan Documents, and all renewals and extensions
thereof, or part thereof.

"Operating
Cash Flow" means for the Company, for any period, the sum of Net
Income, less income or plus loss from discontinued operations and extraordinary
items, less gains or plus losses from the sale of assets, plus income tax
expense, plus interest expense, plus depreciation, depletion, amortization and
other non-cash charges, each as determined in accordance with GAAP and each for
the twelve (12) month period ended as of the date of determination.

"Other
Taxes":  Section 4.09.

"Outstanding
Amount" means with respect to any Letter of Credit Exposure on any
date, the amount of such Letter of Credit Exposure on such date after giving
effect to any Letter of Credit issuance, extension, or increase occurring on
such date and any other changes in the aggregate amount of the Letter of Credit
Exposure as of such date, including as a result of any reimbursements by the
Company of Unreimbursed Amounts.

"Permitted
Acquisition" means an Acquisition by the Company or any Consolidated
Subsidiary of the Company with respect to which each of the following
conditions shall have been satisfied:

(a)           the
consideration paid for any individual Acquisition shall not exceed $20,000,000;

(b)          the
consideration paid for all Acquisitions during the current fiscal year, in the
aggregate, after giving effect to the Acquisition, shall not exceed
$30,000,000;

(c)           the
Company has provided to Administrative Agent and Lenders all information and
documentation reasonably requested by Administrative Agent and Lenders
regarding the Acquisition;

(d)           as
of the closing of such Acquisition, after giving effect to such Acquisition, no
Event of Default or Potential Default shall exist or occur as a result of, and
after giving effect to, such Acquisition;

(e)           not
less than five (5) Business Days prior to the closing of any Acquisition,
Administrative Agent shall have received a certificate in the form of Exhibit
Q dated on or immediately prior to the date of the Acquisition, executed by
the President or a Vice President of the Company (i) confirming that all
representations and warranties set forth in the Loan Documents continue to be
true and correct in all material respects immediately prior to and after giving
effect to the Acquisition and the transactions contemplated thereby, and, for
any Acquisition in which the total consideration is equal to or greater than
$5,000,000, certifying pro forma financial statements of the Company and its
Consolidated Subsidiaries demonstrating compliance with the covenants set forth
in Sections 8.14, 8.15, 8.16, and 8.18 (as if the business,
assets or Person acquired had been acquired since the first (1st) day of the
period for which such pro forma financial statements are delivered and had been
managed and conducted in accordance with the Company's standard business
practices) for the prior four (4) fiscal quarters of the Company and its
Consolidated Subsidiaries.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

9

"Permitted
Liens" means: (i) Liens in favor of Lenders to secure the Obligation;
(ii) Liens described on the Company's June 30, 2004 financial statements or in
Exhibit
H attached hereto; (iii) pledges or deposits made to secure payment of
Worker's Compensation (or to participate in any fund in connection with
Worker's Compensation), unemployment insurance, pensions or social security
programs; (iv) Liens imposed by mandatory provision of law such as for
materialmen's, mechanics, warehousemen's and other like Liens arising in the
ordinary course of business, securing Indebtedness whose payment is not yet
due; (v) Liens for taxes, assessments and governmental charges or levies
imposed upon a Person or upon such Person's income or profits or property, if
the same are not yet past due and payable or if the same are being contested in
good faith and as to which adequate reserves have been provided; (vi) good faith
deposits in connection with leases, real estate bids or contracts (other than
contracts involving the borrowing of money), pledges or deposits to secure
public or statutory obligations, deposits to secure (or in lieu of) surety,
stay, appeal or customs bonds and deposits to secure the payment of taxes,
assessments, customs duties or other similar charges; (vii) encumbrances
consisting of zoning restrictions, easements, or other restrictions on the use
of real property, provided that such do not impair the use of such property for
the uses intended, and none of which is violated by existing or proposed
structures or land use; (viii) Liens granted by newly-acquired
Subsidiaries against their assets, so long as no other member of the Obligated
Group is a co-maker or guarantor of that Indebtedness; and (ix) Liens securing
purchase money Indebtedness permitted pursuant to the last paragraph of Section
9.01.

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

"Potential
Default" means the occurrence of any event which with passage of time
or giving of notice, or either or both, could become an Event of Default.

"Prime
Rate Advance" means any principal amount under a Note with respect to
which the interest rate is computed by reference to the Prime Rate.

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

"Principal
Debt" means, on any date of determination and without duplication, the
sum
of (a) the aggregate unpaid principal balance of all Borrowings under the
Revolver Facility (including, without limitation, Swing Line Principal Debt) plus
(b) Letter of Credit Exposure.

"Pro Rata
Share" means the percentage obtained in dividing (i) the aggregate
amount of such Lender's Revolving Credit Commitment, or, if the Revolving
Credit Commitments shall have been terminated, then the aggregate unpaid
principal amount of the Aggregate Principal Debt owed to such Lender by (ii)
the aggregate amount of the Revolving Credit Commitment of all the Lenders, or,
if the Revolving Credit Commitments shall have been terminated, then the
Aggregate unpaid principal amount of the principal debt owed to all the
Lenders.

"Regulation
D" means Regulation D of the Board of Governors of the Federal
Reserve System from time to time in effect and includes any successor or other
regulation relating to reserve requirements applicable to member banks of the
Federal Reserve System.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

10

 

"Regulation
U" means Regulation U promulgated by the Board of Governors of the
Federal Reserve System, 12 C.F.R. part 221, or any other regulation thereafter
promulgated by said Board to replace the prior Regulation U and having
substantially the same function.

"Regulation
X" means regulation X promulgated by the Board of Governors of the
Federal Reserve System, 12 C.F.R. Part 224, or any other regulation hereafter
promulgated by said Board to replace the prior Regulation X and having
substantially the same function.

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

"Representatives"
means representatives, officers, directors, employees, attorneys and agents.

"Request
For Advance":  Section 2.03(a).

"Required
Lenders" means, any combination of the Lenders (which must include
Administrative Agent) who collectively hold sixty percent (60%) of (a) the
Revolving Credit Commitments, or (b) if the Revolving Credit Commitments shall
have been terminated, then the aggregate unpaid principal amount of the
Revolving Credit Notes.

"Revaluation
Date" means with respect to any Letter of Credit, each of the
following:  (i) each date of issuance of a Letter of Credit denominated in an
Alternative Currency, (ii) each date of an amendment of any such Letter of
Credit having the effect of increasing the amount thereof (solely with respect
to the increased amount), (iii) each date of any payment by Administrative
Agent under any Letter of Credit denominated in an Alternative Currency, and
(iv) such additional dates as Administrative Agent shall determine.

"Revolving
Credit Commitment" means for each Lender, the amount set forth opposite
its signature on this Loan Agreement as its Revolving Credit Commitment, as the
same may be increased or decreased from time to time by assignment pursuant to
Section
12.10 hereof, decreased pursuant to Section 2.01(a), decreased by
the Required Lenders pursuant to Section 10.01 hereof, or increased
pursuant to Section 2.01(b),  and "Revolving Credit Commitments"
shall mean the aggregate commitments of all Lenders.

"Revolving
Credit Loan" means all Advances with respect to the Revolving Credit
Commitment, evidenced by the Revolving Credit Notes.

"Revolving
Credit Notes" means the revolving credit notes executed by the Company,
substantially in the form of Exhibit B attached hereto, one payable
to each Lender in an amount equal to the Revolving Credit Commitment, as the
same may be amended, supplemented, modified or restated from time to time,
evidencing the obligation of the Company to repay the Revolving Credit Loan,
and all renewals, modifications and extensions thereof.

"Revolving
Credit Period":  Section 2.01(a).

"Revolver
Facility" means the credit facility as described in and subject to the
limitations set forth in Section 2.01 hereof, including the Letter
of Credit Subfacility and the Swing Line Subfacility.

"Rollover
Notice": Section 2.03(c).

"Spot Rate"
for a currency means the rate determined by Administrative Agent to be the rate
quoted by the Person acting in such capacity as the spot rate for the purchase
by such Person of such currency with another currency through its principal
foreign exchange trading office at approximately 11:00 a.m. on the date two (2)
Business Days prior to the date as of which the foreign exchange computation is
made; provided that Administrative Agent may obtain such spot rate from
another financial institution designated by Administrative Agent if the Person
acting in such capacity does not have as of the date of determination a spot
buying rate for any such currency; and provided further that
Administrative Agent may use such spot rate quoted on the date as of which the
foreign exchange computation is made in the case of any Letter of Credit
denominated in an Alternative Currency.

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

11

"Subfacilities"
means, collectively, the Letter of Credit Subfacility, and the Swing Line
Subfacility, and  "Subfacility" means either one of
them.

"Subsidiary"
means any corporation fifty percent (50%) or more of the Voting Shares of
which, or any other recognized business organization (e.g. partnership, limited
liability company) fifty percent (50%) or more of the equity ownership of
which, is owned directly or indirectly by the Company.

"Swing
Line Borrowing" means any Borrowing under the Swing Line Subfacility.

"Swing
Line Commitment" means an amount (subject to availability, reduction,
or cancellation as herein provided) equal to $5,000,000.

"Swing
Line Lender" means Bank of America and its successors and assigns.

"Swing
Line Loan": Section 2.01(c)(i).

"Swing
Line Maturity Date" for any Swing Line Borrowing means the earlier of
(a) the date on which the Swing Line Lender demands repayment of such Swing
Line Borrowing or (b) the Termination Date.

"Swing
Line Note" means a promissory note in substantially the form of Exhibit
C and all renewals, extensions of all or any part thereof.

"Swing
Line Principal Debt" means, on any other date of determination, that
portion of the Principal Debt outstanding under the Swing Line Subfacility.

"Swing
Line Subfacility" means the subfacility under the Revolver Facility
described in, and subject to the limitations of, Section2.01(c).

"Taxes"
: Section 4.09.

"Temporary
Cash Investment" means any Investment (i) in direct obligations of the
United States of America or any agency thereof, or obligations fully guaranteed
by the United States of America or any agency thereof, provided that
such obligations mature within ninety (90) days of the date of acquisition
thereof, (ii) commercial paper rated in the highest grade by two or more
national credit rating agencies and maturing not more than ninety (90) days
from the date of creation thereof, and (iii) time deposits with, and
certificates of deposit and banker's acceptances issued by, any United States
bank having capital surplus and undivided profits aggregating at least
$175,000,000, except that similar Investments relating to European operations
may be maintained in LLoyds Bank in the United Kingdom, or in another
depository approved in advance by Administrative Agent.

"Termination
Date" means the earliest date on which any of the following events
occurs: (a) August 25, 2009; (b) the date that Required Lenders terminate their
commitment to lend hereunder, after the occurrence of an Event of Default; or
(c) such earlier date as may be agreed upon in writing by the Company and
Required Lenders. 

"Unreimbursed
Amount": Section 2.02(c)(i).

"Voting
Shares" of any corporation means shares of any class or classes
(however designated) having ordinary voting power for the election of at least
a majority of the members of the board of directors (or other governing bodies)
of such corporation, other than shares having such power only by reason of the
happening of a contingency.

1.02.      
Other
Definitional Provisions.

(a)           All
terms defined in this Loan Agreement shall have the above-defined meanings when
used in the Notes or any Loan Documents, certificate, report or other document
made or delivered pursuant to this Loan Agreement, unless the context therein
shall otherwise require.

(b)           Defined
terms used herein in the singular shall mean the plural and vice versa.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

12

 

(c)           The
words "hereof," "herein," "hereunder" and similar terms when used in this Loan
Agreement shall refer to this Loan Agreement as a whole and not to any
particular provision of this Loan Agreement.

(d)           Each
accounting term not defined herein shall have the meaning given to it under
GAAP applied to the financial statements and affairs of the Company.

1.03       
Letter
of Credit Amounts.   Unless otherwise specified herein,
the amount of a Letter of Credit at any time shall be deemed to be the stated
amount of such Letter of Credit in effect at such time; provided, however,
that with respect to any Letter of Credit that, by its terms or the terms of
any document related thereto, provides for one or more automatic increases in
the stated amount thereof, the amount of such Letter of Credit shall be deemed
to be the maximum stated amount of such Letter of Credit after giving effect to
all such increases, whether or not such maximum stated amount is in effect at
such time.

1.04       
Additional
Alternative Currencies.

                (a) 
The Company may from time to time request that Letters of Credit be issued in a
currency other than those specifically listed in the definition of "Alternative
Currency;" provided that such requested currency is a lawful
currency (other than Dollars) that is readily available and freely transferable
and convertible into Dollars.  Such request shall be subject to the approval of
Administrative Agent.

(b)           Any
such request shall be made to Administrative Agent not later than 11:00 a.m.,
twenty (20) Business Days prior to the date of the desired Letter of Credit
issuance (or such other time or date as may be agreed by Administrative Agent,
in its sole discretion).  

(c)           If
Administrative Agent consents to the issuance of Letters of Credit in such
requested currency, Administrative Agent shall so notify the Company and such
currency shall thereupon be deemed for all purposes to be an Alternative
Currency hereunder for purposes of any Letter of Credit issuances. 

ARTICLE 2

THE REVOLVING CREDIT LOAN;
LETTER OF CREDIT SUBFACILITY AND SWING LINE SUBFACILITY

2.01.    
Revolving
Credit Commitments.

 (a)      
Revolving
Credit Loan Commitment.  Subject to the terms and conditions of this
Loan Agreement, Lenders agree to extend to the Company, from the date hereof
through the Termination Date (the "Revolving Credit Period"), the
Revolving Credit Commitment.  In computing the outstanding balance (and,
therefore, the available credit), Lenders shall include as outstanding the
aggregate face amount of all outstanding Letters of Credit, which shall not at
any time exceed $7,500,000.

(i)            The
Company shall have the right, on three (3) Business Days' prior written notice
to Administrative Agent, to permanently reduce the unutilized or, by prepayment
with written notice to Administrative Agent of permanent reduction, outstanding
portion of the Revolving Credit Commitments; provided that any partial
reduction shall be in the minimum amount of $1,000,000 or in any larger
multiple of $100,000.

(ii)           Within
the limits of this Section 2.01, but only during the Revolving Credit
Period, the Company may borrow, prepay pursuant to Section 4.04 and
reborrow under this Section 2.01.  Each advance made by Lenders is
herein called an "Advance"; all Advances made by Lenders
hereunder are herein collectively called the "Advances" or the "Revolving
Credit Loan."  The Revolving Credit Loan shall bear interest from
time-to-time in accordance with the selections made by the Company from
time-to-time pursuant to Sections 2.03(a) and 2.03(c).

(iii) Unless
the Company or any Lender has notified Administrative Agent prior to the date
any payment is required to be made by it to Administrative Agent hereunder,
that the Company or such Lender, as the case may be, will not make such
payment, Administrative Agent may assume that the Company or such Lender, as
the case may be, has timely made such payment and may (but shall not be so
required to), in reliance thereon, make available a corresponding amount to the
Person entitled thereto.  If and to the extent that such payment was not in
fact made to Administrative Agent in immediately available funds, then:

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

13

(A)          if
the Company failed to make such payment, each Lender shall forthwith on demand
repay to Administrative Agent the portion of such assumed payment that was made
available to such Lender in immediately available funds, together with interest
thereon in respect of each day from and including the date such amount was made
available by Administrative Agent to such Lender to the date such amount is
repaid to Administrative Agent in immediately available funds, at the Federal
Funds Rate from time to time in effect; and

(B)           if
any Lender failed to make such payment, such Lender shall forthwith on demand
pay to Administrative Agent the amount thereof in immediately available funds,
together with interest thereon for the period from the date such amount was
made available by Administrative Agent to the Company to the date such amount
is recovered by Administrative Agent (the "Compensation Period")
at a rate per annum equal to the Federal Funds Rate from time to time in
effect. If such Lender pays such amount to Administrative Agent, then such
amount shall constitute such Lender's Commitment, included in the applicable
Borrowing.  If such Lender does not pay such amount forthwith upon
Administrative Agent's demand therefor, Administrative Agent may make a demand
therefor upon the Company, and the Company shall pay such amount to Administrative
Agent, together with interest thereon for the Compensation Period at a rate per
annum equal to the rate of interest applicable to the applicable Borrowing. 
Nothing herein shall be deemed to relieve any Lender from its obligation to
fulfill its Commitment or to prejudice any rights which Administrative Agent or
the Company may have against any Lender as a result of any default by such
Lender hereunder.

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

(b)       
Increases
of Commitments.  

(i)            Upon
notice to Administrative Agent (which shall promptly notify Lenders), the
Company may from time to time, request an increase in the Revolving Credit
Commitments of up to $30,000,000, resulting in an increased Revolving Credit
Commitments of up to $100,000,000, provided that, (A) each increase in
the Revolving Credit Commitments shall be in the minimum amount of $10,000,000
or a greater integral multiple of $5,000,000, (B) after giving effect to the
increase in the Revolving Credit Commitments, the Revolving Credit Commitments
do not exceed $100,000,000, and (C) no Potential Default or Event of Default
exists. At the time of sending such notice, the Company (in consultation with
Administrative Agent) shall specify the time period within which each Lender is
requested to respond (which shall in no event be less than ten (10) Business
Days from the date of delivery of such notice to Lenders). Each Lender shall notify
Administrative Agent within such time period whether or not it agrees to
increase its 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 Commitment. Administrative Agent shall notify the Company and each
Lender of Lenders' responses to each request made hereunder.  To achieve the
full amount of a requested increase, the Company may also invite additional
eligible assignees to become Lenders. Any increase in the Revolving Credit
Commitments must be effected by an amendment that is executed in accordance
with Section 12.01 by the Company, Administrative Agent,
and the one or more Lenders who have agreed to increase their Commitments or by
new Lenders who have agreed to new Commitments in accordance with Section
12.01. 

(ii)           If
any Commitments are increased in accordance with this Section,
Administrative Agent and the Company shall determine the effective date of such
increase (the "Increase Effective Date").  Administrative Agent
and the Company shall promptly notify Lenders of the  final allocation of such
increase and the Increase Effective Date. As a condition precedent to such increase,
the Company shall deliver to Administrative Agent a certificate of each Loan
Party dated as of the Increase Effective Date (in sufficient copies for each
Lender) signed by a authorized officer or director of such Loan Party (i)
certifying and attaching the resolutions adopted by such Loan Party approving
or consenting to such increase, (ii) in the case of the Company, including a
Compliance Certificate demonstrating pro forma compliance with the
representations and warranties contained in this Loan Agreement after
giving effect to such increase, and (iii) certifying that, before and
after giving effect to such increase, the representations and warranties
contained in Articles 8 and 9 are true and
correct on and as of the Increase Effective Date and no Event of Default or
Potential Default exists. The Company shall deliver new or amended Revolving
Credit Notes reflecting the increased Commitments to any Lenders holding or
requesting Revolving Credit Notes. Each new Lender acquiring a Commitment shall
be a "Lender" hereunder, entitled to the rights and benefits, and
subject to the duties, of a Lender under the Loan Documents. In such case, each
Lender's Pro Rata Share shall be recalculated to reflect the new proportionate
share of the revised Revolving Credit Commitment and the Lenders acquiring
additional or increased Commitments (each a "purchasing Lender")
shall, immediately upon receiving notice from Administrative Agent, pay to each
Lender an amount equal to its pro rata share of the Borrowings (and any funded
participations by Lenders under the Swing Line Subfacility and the Letter of
Credit Subfacility) outstanding as of such date. All such payments with respect
to the Borrowings shall reduce the outstanding Principal Debt owed to each
Lender receiving such payments and shall represent Borrowings to the Company
and be Principal Debt owed to the purchasing Lender; all such payments with
respect to funded participations under the Swing Line Subfacility or Letter of
Credit Subfacility (as the case may be) shall reduce the applicable
participation of each Lender receiving such payment and shall represent the
purchase by the purchasing Lender of a participation under the Swing Line
Subfacility or the Letter of Credit Subfacility (as the case may be). Additionally,
the Company shall pay any additional amounts required pursuant to Section
5.01(e) in connection with such repayments to any Lender. The
purchasing Lender shall be entitled to share ratably in interest accruing on
the balances purchased, at the rates provided herein for such balances, from
and after the date of purchase. All new Borrowings occurring after an increase
of the Revolving Credit Commitment shall be funded in accordance with the
Lender's revised Pro Rata Shares.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

14

(c)        
Swing Line Subfacility.

(i)            Subject
to the terms and conditions set forth herein, the Swing Line Lender agrees, in
reliance upon the agreements of the other Lenders set forth in this Section
2.01(c),  to make loans (each such loan, a "Swing Line Loan") to the
Company from time to time on any Business Day from the Closing Date to the
Termination Date in an aggregate amount not to exceed at any time outstanding
the amount of the Swing Line Subfacility, notwithstanding the fact that such
Swing Line Loans, when aggregated with the Pro Rata Share of the Principal Debt
of the Lender acting as Swing Line Lender, may exceed the amount of such
Lender's Revolving Credit Commitment; provided, however, that after
giving effect to any Swing Line Loan, (i) the Principal Debt shall not exceed the
Revolving Credit Commitments, and (ii) the aggregate Principal Debt of the
Revolving Credit Loans of any Lender, plus such Lender's Pro Rata Share of the
Principal Debt of all Letter of Credit Exposure, plus such Lender's Pro Rata
Share of the Principal Debt of all Swing Line Loans shall not exceed such
Lender's Revolving Credit Commitment, and provided, further, that the
Company shall not use the proceeds of any Swing Line Loan to refinance any
outstanding Swing Line Loan.  Within the foregoing limits, and subject to the
other terms and conditions hereof, the Company may borrow under this Section
2.01(c), prepay under Section 4.04, and reborrow under this Section
2.01(c).  Each Swing Line Loan shall be a Prime Rate Advance.  Immediately
upon the making of a Swing Line Loan, each Lender shall be deemed to, and
hereby irrevocably and unconditionally agrees to, purchase from the Swing Line
Lender a risk participation in such Swing Line Loan in an amount equal to the
product of such Lender's Pro Rata Share times the amount of such Swing Line
Loan.

(ii)           Each
Swing Line Borrowing shall be made upon the Company's irrevocable notice to the
Swing Line Lender and Administrative Agent, which may be given by telephone.
Each such notice must be received by the Swing Line Lender and Administrative
Agent not later than 1:00 p.m. on the requested borrowing date, and shall
specify (i) the amount to be borrowed, which shall be a minimum of $250,000 or
a greater integral multiple of $50,000, and (ii) the requested borrowing date,
which shall be a Business Day.  Each such telephonic notice must be confirmed
promptly by delivery to the Swing Line Lender of a written notice,
appropriately completed and signed by a responsible officer of the Company. 
Promptly after receipt by the Swing Line Lender of any telephonic Swing Line
Loan notice, the Swing Line Lender will confirm with the Administrative Agent
(by telephone or in writing) that the Administrative Agent has also received
such Swing Line Loan notice and, if not, the Swing Line Lender will notify the
Administrative Agent (by telephone or in writing) of the contents thereof. 
Unless the Swing Line Lender has received notice (by telephone or in writing)
from the Administrative Agent (including at the request of any Lender) prior to
2:00 p.m. on the date of the proposed Swing Line Borrowing (A) directing the
Swing Line Lender not to make such Swing Line Loan as a result of the
limitations set forth in the proviso to the first sentence of Section
2.01(c)(i), or (B) that one or more of the applicable conditions specified
in Article 7 is not then satisfied, then, subject to the terms and
conditions hereof, the Swing Line Lender will, not later than 3:00 p.m. on the
borrowing date specified in such Swing Line Loan notice, make the amount of its
Swing Line Loan available to the Company.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

15

 

(iii)         
 Refinancing
of Swing Line Loans.

(A)          The
Swing Line Lender at any time in its sole and absolute discretion may request,
on behalf of the Company (which hereby irrevocably authorizes the Swing Line
Lender to so request on its behalf), that each Lender make a Prime Rate Advance
in an amount equal to such Lender's Pro Rata Share of the amount of Swing Line
Loans then outstanding.  Such request shall be made in writing (which written
request shall be deemed to be a Request for Advance for purposes hereof) and in
accordance with the requirements of Section 2.03, without regard to the
minimum and multiples specified therein for the principal amount of Prime Rate
Advances, but subject to the unutilized portion of the Revolving Credit
Commitments and the conditions set forth in Section 7.02.  The Swing
Line Lender shall furnish the Company with a copy of the applicable Request for
Advance promptly after delivering such notice to Administrative Agent.  Each
Lender shall make an amount equal to its Pro Rata Share of the amount specified
in such Request for Advance available to Administrative Agent in immediately
available funds for the account of the Swing Line Lender at Administrative
Agent's Office not later than 1:00 p.m. on the day specified in such Request
for Advance, whereupon, subject to Section 2.01(c)(iii)(B), each Lender
that so makes funds available shall be deemed to have made a Prime Rate Advance
to the Company in such amount.  Administrative Agent shall remit the funds so
received to the Swing Line Lender.

(B)           If
for any reason any Swing Line Loan cannot be refinanced by such a Prime Rate
Advance in accordance with Section 2.01(c)(iii)(A), the request for
Prime Rate Advance submitted by the Swing Line Lender as set forth herein shall
be deemed to be a request by the Swing Line Lender that each of the Lenders
fund its risk participation in the relevant Swing Line Loan and each Lender's
payment to Administrative Agent for the account of the Swing Line Lender
pursuant to Section 2.01(c)(iii)(A) shall be deemed payment in respect
of such participation.

(C)           If
any Lender fails to make available to Administrative Agent for the account of
the Swing Line Lender any amount required to be paid by such Lender pursuant to
the foregoing provisions of this Section 2.01(c)(iii) by the time
specified in Section 2.01(c)(iii)(A), the Swing Line Lender shall be
entitled to recover from such Lender (acting through Administrative Agent), on
demand, such amount with interest thereon for the period from the date such
payment is required to the date on which such payment is immediately available
to the Swing Line Lender at a rate per annum equal to the greater of the
Federal Funds Rate and a rate determined by the Swing Line Lender in accordance
with banking industry rules on interbank compensation.  A certificate of the
Swing Line Lender submitted to any Lender (through Administrative Agent) with
respect to any amounts owing under this clause (C) shall be conclusive
absent manifest error.

(D)          Each
Lender's obligation to make Prime Rate Advances or to purchase and fund risk
participations in Swing Line Loans pursuant to this Section 2.01(c)(iii)
shall be absolute and unconditional and shall not be affected by any circumstance,
including (1) any setoff, counterclaim, recoupment, defense or other right
which such Lender may have against the Swing Line Lender, the Company or any
other Person for any reason whatsoever, (2) the occurrence or continuance of an
Event of Default, or (3) any other occurrence, event or condition, whether or
not similar to any of the foregoing; provided, however, that each
Lender's obligation to make Prime Rate Advances pursuant to this Section
2.01(c)(iii) is subject to the conditions set forth in Section 7.02. 
No such funding of risk participations shall relieve or otherwise impair the
obligation of the Company to repay Swing Line Loans, together with interest as
provided herein.

(iv)         
Repayment
of Participations.  

(A)          At
any time after any Lender has purchased and funded a risk participation in a
Swing Line Loan, if the Swing Line Lender receives any payment on account of
such Swing Line Loan, the Swing Line Lender will distribute to such Lender its
Pro Rata Share of such payment (appropriately adjusted, in the case of interest
payments, to reflect the period of time during which such Lender's risk
participation was funded) in the same funds as those received by the Swing Line
Lender.

(B)           If
any payment received by the Swing Line Lender in respect of principal or
interest on any Swing Line Loan is required to be returned by the Swing Line
Lender under any of the circumstances described in Section 12.23
(including pursuant to any settlement entered into by the Swing Line Lender in
its discretion), each Lender shall pay to the Swing Line Lender its Pro Rata
Share thereof on demand of Administrative Agent, plus interest thereon from the
date of such demand to the date such amount is returned, at a rate per annum
equal to the Federal Funds Rate.  Administrative Agent will make such demand
upon the request of the Swing Line Lender.  The obligations of the Lenders
under this clause shall survive the payment in full of the Obligation and the
termination of this Agreement.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

16

 

(v)          
Interest
for Account of Swing Line Lender.  The Swing Line Lender shall be
responsible for invoicing the Company for interest on the Swing Line Loans. 
Until each Lender funds its Prime Rate Advance or risk participation pursuant
to this Section 2.01(c) to refinance such Lender's Applicable Percentage
of any Swing Line Loan, interest in respect of such Applicable Percentage shall
be solely for the account of the Swing Line Lender.

(vi)         
Payments
Directly to Swing Line Lender.  The Company shall make all payments of
principal and interest in respect of the Swing Line Loans directly to the Swing
Line Lender.

2.02     
Letters
of Credit.

 (a)           The
Letter of Credit Commitment.

 (i)            Subject
to the terms and conditions set forth herein, (A) Administrative Agent agrees,
in reliance upon the agreements of the Lenders set forth in this Section
2.02(a),  (1) from time to time on any Business Day during the period from
the Closing Date until the Letter of Credit Expiration Date, to issue Letters
of Credit denominated in Dollars or in one or more Alternative Currencies for
the account of the Company, and to amend or extend Letters of Credit previously
issued by it, in accordance with subsection (b) below, and (2) to honor
drawings under the Letters of Credit; and (B) the Lenders severally agree to
participate in Letters of Credit issued for the account of the Company and any
drawings thereunder; provided that after giving effect to any Borrowing
with respect to any Letter of Credit, (x) the total Principal Debt shall not
exceed the Commitments, (y) the aggregate Principal Debt of the Loans of any
Lender, shall not exceed such Lender's Commitment, and (z) the Principal Debt
of the Letter of Credit Exposure shall not exceed the amount of the Letter of
Credit Subfacility.  Each request by the Company for the issuance or amendment
of a Letter of Credit shall be deemed to be a representation by the Company
that the Letter of Credit Borrowing so requested complies with the conditions
set forth in the proviso to the preceding sentence.  Within the foregoing
limits, and subject to the terms and conditions hereof, the Company's ability
to obtain Letters of Credit shall be fully revolving, and accordingly the
Company may, during the foregoing period, obtain Letters of Credit to replace
Letters of Credit that have expired or that have been drawn upon and
reimbursed.  All Existing Letters of Credit shall be deemed to have been issued
pursuant hereto, and from and after the Closing Date shall be subject to and
governed by the terms and conditions hereof.

(ii)           Administrative
Agent shall not issue any Letter of Credit, if:

(A)         
subject to Section 2.02(b)(iii), the expiry date of such requested Letter of
Credit would occur more than twelve months after the date of issuance or last
extension, unless the Required Lenders have approved such expiry date; or

(B)           the
expiry date of such requested Letter of Credit would occur after the Letter of
Credit Expiration Date, unless all the Lenders have approved such expiry date.

(iii)          Administrative
Agent shall not be under any obligation to issue any Letter of Credit if: 

(A)          any
order, judgment or decree of any Governmental Authority or arbitrator shall by
its terms purport to enjoin or restrain Administrative Agent from issuing such
Letter of Credit, or any law applicable to Administrative Agent or any request
or directive (whether or not having the force of law) from any Governmental
Authority with jurisdiction over Administrative Agent shall prohibit, or
request that Administrative Agent refrain from, the issuance of letters of
credit generally or such Letter of Credit in particular or shall impose upon
Administrative Agent with respect to such Letter of Credit any restriction,
reserve or capital requirement (for which Administrative Agent is not otherwise
compensated hereunder) not in effect on the Closing Date, or shall impose upon
Administrative Agent any unreimbursed loss, cost or expense which was not
applicable on the Closing Date and which Administrative Agent in good faith
deems material to it;  

(B)           the
issuance of such Letter of Credit would violate one or more policies of
Administrative Agent;  

(C)           except
as otherwise agreed by Administrative Agent, such Letter of Credit is in an
initial stated amount less than $100,000, in the case of a commercial Letter of
Credit, or $200,000, in the case of a standby Letter of Credit; 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

17

 

(D)          Administrative
Agent does not, as of the issuance date of such requested Letter of Credit,
issue Letters of Credit in the requested currency;

(E)           except
as otherwise agreed by Administrative Agent, such Letter of Credit is to be
denominated in a currency other than Dollars or an Alternative Currency;

(F)           such
Letter of Credit contains any provisions for automatic reinstatement of the
stated amount after any drawing thereunder;  or 

(G)           a
default of any Lender's obligations to fund under Section 2.01 exists,
unless Administrative Agent has entered into satisfactory arrangements with the
Company or such Lender to eliminate Administrative Agent risk with respect to
such Lender.  

(iv)          Administrative
Agent shall not amend any Letter of Credit if Administrative Agent would not be
permitted at such time to issue such Letter of Credit in its amended form under
the terms hereof.

(v)           Administrative
Agent shall be under no obligation to amend any Letter of Credit if (A)
Administrative Agent would have no obligation at such time to issue such Letter
of Credit in its amended form under the terms hereof, or (B) the beneficiary of
such Letter of Credit does not accept the proposed amendment to such Letter of
Credit.

(vi)          Administrative
Agent shall act on behalf of the Lenders with respect to any Letters of Credit
issued by it and the documents associated therewith, and Administrative Agent
shall have all of the benefits and immunities (A) provided to Administrative
Agent in Article 9 with respect to any acts taken or omissions suffered
by Administrative Agent in connection with Letters of Credit issued by it or
proposed to be issued by it and issuer documents pertaining to such Letters of
Credit as fully as if the term "Administrative Agent" as used in
Article
9 included Administrative Agent with respect to such acts or omissions, and
(B) as additionally provided herein with respect to Administrative Agent.

(b)          
Procedures
for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of
Credit. 

(i)            Each
Letter of Credit shall be issued or amended, as the case may be, upon the
request of the Company delivered to Administrative Agent in the form of a
Letter of Credit Application, appropriately completed and signed by a
responsible officer of the Company.  Such Letter of Credit Application must be
received by Administrative Agent (A) not later than 11:00 a.m. at least two (2)
Business Days prior to the proposed issuance date or date of amendment, as the
case may be, of any Letter of Credit denominated in Dollars, and (B) not later
than 11:00 a.m. at least ten (10) Business Days prior to the proposed issuance
date or date of amendment, as the case may be, of any Letter of Credit
denominated in an Alternative Currency (or such later date and time as
Administrative Agent may agree in a particular instance in its sole
discretion).  In the case of a request for an initial issuance of a Letter of
Credit, such Letter of Credit Application shall specify in form and detail
satisfactory to Administrative Agent: (A) the proposed issuance date of the
requested Letter of Credit (which shall be a Business Day); (B) the amount and
currency thereof; (C) the expiry date thereof; (D) the name and address of the
beneficiary thereof; (E) the documents to be presented by such beneficiary in
case of any drawing thereunder; (F) the full text of any certificate to be
presented by such beneficiary in case of any drawing thereunder; and (G) such other
matters as Administrative Agent may require.  In the case of a request for an
amendment of any outstanding Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to Administrative
Agent (A) the Letter of Credit to be amended; (B) the proposed date of
amendment thereof (which shall be a Business Day); (C) the nature of the
proposed amendment; and (D) such other matters as Administrative Agent may
require.  Additionally, the Company shall furnish to Administrative Agent such
other documents and information pertaining to such requested Letter of Credit
issuance or amendment, including any Issuer Documents, as Administrative Agent
may require.

(ii)           Unless
Administrative Agent has received written notice from any Lender or any Loan
Party, at least one (1) Business Day prior to the requested date of issuance or
amendment of the applicable Letter of Credit, that one or more applicable
conditions contained in Article 7 shall not then be satisfied, then,
subject to the terms and conditions hereof, Administrative Agent shall, on the
requested date, issue a Letter of Credit for the account of the Company or
enter into the applicable amendment, as the case may be, in each case in
accordance with Administrative Agent's usual and customary business practices. 
Immediately upon the issuance of each Letter of Credit, each Lender shall be
deemed to, and hereby irrevocably and unconditionally agrees to, purchase from
Administrative Agent a risk participation in such Letter of Credit in an amount
equal to the product of such Lender's Pro Rata share times the amount of such
Letter of Credit.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

18

 

(iii)          If
the Company so requests in any applicable Letter of Credit application, the
Administrative Agent may, in its sole and absolute discretion, agree to issue a
Letter of Credit that has automatic extension provisions (each, an "Auto-Extension
Letter of Credit"); provided that any such Auto-Extension Letter
of Credit must permit Administrative Agent to prevent any such extension at
least once in each twelve-month period (commencing with the date of issuance of
such Letter of Credit) by giving prior notice to the beneficiary thereof not
later than a day (the "Non-Extension Notice Date") in each such
twelve-month period to be agreed upon at the time such Letter of Credit is
issued.  Unless otherwise directed by Administrative Agent, the Company shall
not be required to make a specific request to the Administrative Agent for any
such extension.  Once an Auto-Extension Letter of Credit has been issued, the
Lenders shall be deemed to have authorized (but may not require) Administrative
Agent to permit the extension of such Letter of Credit at any time to an expiry
date not later than the Letter of Credit Expiration Date; provided, however,
that Administrative Agent shall not permit any such extension if (A)
Administrative Agent has determined that it would not be permitted, or would
have no obligation, at such time to issue such Letter of Credit in its revised
form (as extended) under the terms hereof (by reason of the provisions of clause
(ii) or (iii) of Section 2.02(a) or otherwise), or (B) it has
received notice (which may be by telephone or in writing) on or before the day
that is five (5) Business Days before the Non-Extension Notice Date (1) that
the Required Lenders have elected not to permit such extension or (2) from any
Lender or the Company that one or more of the applicable conditions specified
in Section 7.02 is not then satisfied, and in each such case directing
Administrative Agent not to permit such extension.

 (iv)         Promptly
after its delivery of any Letter of Credit or any amendment to a Letter of
Credit to an advising bank with respect thereto or to the beneficiary thereof,
Administrative Agent will also deliver to the Company a true and complete copy
of such Letter of Credit or amendment.

(c)          
Drawings
and Reimbursements; Funding of Participations.

(i)            Upon
receipt from the beneficiary of any Letter of Credit of any notice of a drawing
under such Letter of Credit, Administrative Agent shall notify the Company
thereof.  In the case of a Letter of Credit denominated in an Alternative
Currency, the Company shall reimburse Administrative Agent in such Alternative
Currency, unless (A) Administrative Agent (at its option) shall have specified
in such notice that it will require reimbursement in Dollars, or (B) in the
absence of any such requirement for reimbursement in Dollars, the Company shall
have notified Administrative Agent promptly following receipt of the notice of
drawing that the Company will reimburse the Administrative Agent in Dollars. 
In the case of any such reimbursement in Dollars of a drawing under a Letter of
Credit denominated in an Alternative Currency, Administrative Agent shall
notify the Company of the Dollar Equivalent of the amount of the drawing
promptly following the determination thereof.  Not later than 11:00 a.m. on the
date of any payment by Administrative Agent under a Letter of Credit to be
reimbursed in Dollars, or the Applicable Time on the date of any payment by
Administrative Agent under a Letter of Credit to be reimbursed in an
Alternative Currency (each such date, an "Honor Date"), the
Company shall reimburse Administrative Agent in an amount equal to the amount
of such drawing and in the applicable currency.  If the Company fails to so
reimburse Administrative Agent by such time, Administrative Agent shall
promptly notify each Lender of the Honor Date, the amount of the unreimbursed
drawing (expressed in Dollars in the amount of the Dollar Equivalent thereof in
the case of a Letter of Credit denominated in an Alternative Currency) (the "Unreimbursed
Amount"), and the amount of such Lender's Pro Rata Share thereof.  In
such event, the Company shall be deemed to have requested a Prime Rate Advance
to be disbursed on the Honor Date in an amount equal to the Unreimbursed
Amount, without regard to the minimum and multiples specified in Section
2.03 for the principal amount of a Prime Rate Advance, but subject to the
amount of the unutilized portion of the Commitments and the conditions set
forth in Section 7.02 (other than the delivery of a Request for
Advance).  Any notice given by  Administrative Agent pursuant to this
Section
2.02(c)(i) may be given by telephone if immediately confirmed in writing; provided
that the lack of such an immediate confirmation shall not affect the
conclusiveness or binding effect of such notice.

(ii)           Each
Lender shall upon any notice pursuant to Section 2.02(c)(i) make funds
available to  Administrative Agent in Dollars at Administrative Agent's Lending
Office in an amount equal to its Pro Rata Share of the Unreimbursed Amount not
later than 1:00 p.m. on the Business Day specified in such notice by
Administrative Agent, whereupon, subject to the provisions of Section
2.02(c)(iii), each Lender that so makes funds available shall be deemed to
have made a Prime Rate Advance to the Company in such amount.  

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

19

 

(iii)          With
respect to any Unreimbursed Amount that is not fully refinanced by an Advance
because the conditions set forth in Section 7.02 cannot be satisfied or
for any other reason, the Company shall be deemed to have incurred from
Administrative Agent a Borrowing in the amount of the Unreimbursed Amount that
is not so refinanced, which Borrowing shall be due and payable on demand (together
with interest) and shall bear interest at the Default Rate.  In such event,
each Lender's payment to Administrative Agent pursuant to Section
2.02(c)(ii) shall be deemed payment in respect of its participation in such
Borrowing and shall constitute an Advance from such Lender in satisfaction of
its participation obligation under this Section 2.02.

(iv)          Until
each Lender funds its Advance pursuant to this Section 2.02(c) to
reimburse Administrative Agent for any amount drawn under any Letter of Credit,
interest in respect of such Lender's Pro Rata Share of such amount shall be
solely for the account of Administrative Agent.

(v)           Each
Lender's obligation to make Advances to reimburse Administrative Agent for
amounts drawn under Letters of Credit, as contemplated by this Section
2.02(c), shall be absolute and unconditional and shall not be affected by
any circumstance, including (A) any setoff, counterclaim, recoupment, defense
or other right which such Lender may have against Administrative Agent, the Company
or any other Person for any reason whatsoever; (B) the occurrence or
continuance of an Event of Default, or (C) any other occurrence, event or
condition, whether or not similar to any of the foregoing; provided,
however, that each Lender's obligation to make Advances pursuant to this Section
2.02(c) is subject to the conditions set forth in Section 4.07
(other than delivery by the Company of a Request for Advance).  No such making
of an Advance shall relieve or otherwise impair the obligation of the Company
to reimburse Administrative Agent for the amount of any payment made by
Administrative Agent under any Letter of Credit, together with interest as
provided herein.

(vi)          If
any Lender fails to make available to Administrative Agent any amount required
to be paid by such Lender pursuant to the foregoing provisions of this Section
2.02(c) by the time specified in Section 2.02(c)(ii), Administrative
Agent shall be entitled to recover from such Lender, on demand, such amount
with interest thereon for the period from the date such payment is required to
the date on which such payment is immediately available to Administrative Agent
at a rate per annum equal to the greater of the Federal Funds Rate and a rate
determined by Administrative Agent in accordance with banking industry rules on
interbank compensation.  A certificate of Administrative Agent submitted to any
Lender with respect to any amounts owing under this clause (vi) shall be
conclusive absent manifest error.

(d)          
Repayment
of Participations.  

(i)            At
any time after Administrative Agent has made a payment under any Letter of
Credit and has received from any Lender such Lender's Advance in respect of
such payment in accordance with Section 2.02(c), if Administrative Agent
receives any payment in respect of the related Unreimbursed Amount or interest
thereon (whether directly from the Company or otherwise, including proceeds of
Cash Collateral applied thereto by Administrative Agent), Administrative Agent
will distribute to such Lender its Pro Rata Share thereof (appropriately
adjusted, in the case of interest payments, to reflect the period of time
during which such Lender's Advance was outstanding) in Dollars and in the same
funds as those received by Administrative Agent.

(ii)           If
any payment received by Administrative Agent pursuant to Section 2.02(c)(i)
is required to be returned under any of the circumstances described in Section
12.23 (including pursuant to any settlement entered into by Administrative
Agent in its discretion), each Lender shall pay to Administrative Agent its Pro
Rata Share thereof on demand of Administrative Agent, plus interest thereon
from the date of such demand to the date such amount is returned by such
Lender, at a rate per annum equal to the Federal Funds Rate from time to time
in effect.  The obligations of the Lenders under this clause shall survive the
payment in full of the Obligation and the termination of this Loan Agreement.

(e)          
Obligations
Absolute.  The obligation of the Company to reimburse Administrative
Agent for each drawing under each Letter of Credit and to repay each Borrowing
shall be absolute, unconditional and irrevocable, and shall be paid strictly in
accordance with the terms of this Loan Agreement under all circumstances,
including the following:

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

20

 

(i)            any
lack of validity or enforceability of such Letter of Credit, this Loan
Agreement, or any other Loan Document;

(ii)           the
existence of any claim, counterclaim, setoff, defense or other right that the
Company or any Subsidiary may have at any time against any beneficiary or any
transferee of such Letter of Credit (or any Person for whom any such
beneficiary or any such transferee may be acting), Administrative Agent or any
other Person, whether in connection with this Loan Agreement, the transactions contemplated
hereby or by such Letter of Credit or any agreement or instrument relating
thereto, or any unrelated transaction;

(iii)          any
draft, demand, certificate or other document presented under such Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect
or any statement therein being untrue or inaccurate in any respect; or any loss
or delay in the transmission or otherwise of any document required in order to
make a drawing under such Letter of Credit;

(iv)          any
payment by Administrative Agent under such Letter of Credit against
presentation of a draft or certificate that does not strictly comply with the
terms of such Letter of Credit; or any payment made by Administrative Agent
under such Letter of Credit to any Person purporting to be a trustee in
bankruptcy, debtor-in-possession, assignee for the benefit of creditors,
liquidator, receiver or other representative of or successor to any beneficiary
or any transferee of such Letter of Credit, including any arising in connection
with any proceeding under any debtor relief law; 

(v)           any
adverse change in the relevant exchange rates or in the availability of the
relevant Alternative Currency to the Company or any Subsidiary or in the
relevant currency markets generally; or

(vi)          any
other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, including any other circumstance that might otherwise constitute
a defense available to, or a discharge of, the Company or any Subsidiary.

The Company shall
promptly examine a copy of each Letter of Credit and each amendment thereto
that is delivered to it and, in the event of any claim of noncompliance with
the Company's instructions or other irregularity, the Company will immediately
notify Administrative Agent.  The Company shall be conclusively deemed to have
waived any such claim against Administrative Agent and its correspondents
unless such notice is given as aforesaid.

 (f)           
Role
of Administrative Agent as Letter of Credit Issuer.  Each Lender and the
Company agree that, in paying any drawing under a Letter of Credit,
Administrative Agent shall not have any responsibility to obtain any document
(other than any sight draft, certificates and documents expressly required by
the Letter of Credit) or to ascertain or inquire as to the validity or accuracy
of any such document or the authority of the Person executing or delivering any
such document.  None of, Administrative Agent, any of its Related Parties nor
any correspondent, participant or assignee of Administrative Agent shall be
liable to any Lender for (i) any action taken or omitted in connection herewith
at the request or with the approval of the Lenders or the Required Lenders, as
applicable; (ii) any action taken or omitted in the absence of gross negligence
or willful misconduct; or (iii) the due execution, effectiveness, validity or
enforceability of any document or instrument related to any Letter of Credit or
issuer document.  The Company hereby assumes all risks of the acts or omissions
of any beneficiary or transferee with respect to its use of any Letter of
Credit; provided, however, that this assumption is not intended to, and
shall not, preclude the Company's pursuing such rights and remedies as it may
have against the beneficiary or transferee at law or under any other
agreement.  None of Administrative Agent, any of its Related Parties nor any
correspondent, participant or assignee of Administrative Agent shall be liable
or responsible for any of the matters described in clauses (i) through (v)
of Section 2.02(e); provided, however, that anything in such
clauses to the contrary notwithstanding, the Company may have a claim against
Administrative Agent, and Administrative Agent may be liable to the Company, to
the extent, but only to the extent, of any direct, as opposed to consequential
or exemplary, damages suffered by the Company which the Company proves were
caused by Administrative Agent's willful misconduct or gross negligence or
Administrative Agent's willful failure to pay under any Letter of Credit after
the presentation to it by the beneficiary of a sight draft and certificate(s)
strictly complying with the terms and conditions of a Letter of Credit.  In
furtherance and not in limitation of the foregoing, Administrative Agent may accept
documents that appear on their face to be in order, without responsibility for
further investigation, regardless of any notice or information to the contrary,
and Administrative Agent shall not be responsible for the validity or
sufficiency of any instrument transferring or assigning or purporting to
transfer or assign a Letter of Credit or the rights or benefits thereunder or
proceeds thereof, in whole or in part, which may prove to be invalid or
ineffective for any reason.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

21

 

(g)          
Cash
Collateral.  Upon the request of Administrative Agent, (i) if
Administrative Agent has honored any full or partial drawing request under any
Letter of Credit and such drawing has resulted in a Letter of Credit Borrowing,
the Company shall immediately Cash Collateralize the Unreimbursed Amount under
such Letter of Credit or (ii) if, as of the Letter of Credit Expiration Date,
any Letter of Credit Exposure for any reason remains outstanding, the Company
shall immediately Cash Collateralize the Outstanding Amount of all Letter of
Credit Exposure.  For purposes of this Section 2.02, "Cash
Collateralize" means to pledge and deposit with or deliver to
Administrative Agent, for the benefit of the Lenders, as collateral for the
Letter of Credit Exposure, cash or deposit account balances pursuant to
documentation in form and substance satisfactory to Administrative Agent (which
documents are hereby consented to by the Lenders).  Derivatives of such term
have corresponding meanings.  The Company hereby grants to Administrative
Agent, for the benefit of the Lenders, a security interest in all such cash,
deposit accounts and all balances therein and all proceeds of the foregoing. 
Cash Collateral shall be maintained in blocked, non-interest bearing deposit
accounts at Bank of America.

(h)          
Applicability
of ISP and UCP.   Unless otherwise expressly agreed by Administrative
Agent and the Company when a Letter of Credit is issued (including any such
agreement applicable to an Existing Letter of Credit), (i) the rules of the ISP
shall apply to each standby Letter of Credit, and (ii) the rules of the Uniform
Customs and Practice for Documentary Credits, as most recently published by the
International Chamber of Commerce at the time of issuance shall apply to each
commercial Letter of Credit.

(i)           
Letter
of Credit Fees.  The Company shall pay to Administrative Agent in
Dollars for the account of each Lender in accordance with its Pro Rata Share a
Letter of Credit fee (the "Letter of Credit Fee") (i) for each
commercial Letter of Credit equal to one-half of 1% (0.50%) per annum times the
Dollar Equivalent of the daily amount available to be drawn under such Letter
of Credit, and (ii) for each standby Letter of Credit equal one and one-quarter
percent (1.25%) per annum times the Dollar Equivalent of the daily amount
available to be drawn under such Letter of Credit.  For purposes of computing
the daily amount available to be drawn under any Letter of Credit, the amount
of such Letter of Credit shall be determined in accordance with Section 1.03. 
Letter of Credit Fees shall be (i) computed on a quarterly basis in arrears and
(ii) due and payable on the first (1st) Business Day after the end
of each March, June, September and December, commencing with the first such
date to occur after the issuance of such Letter of Credit, on the Letter of
Credit Expiration Date, and thereafter on demand.  Notwithstanding anything to
the contrary contained herein, upon the request of the Required Lenders, while
any Event of Default exists, all Letter of Credit Fees shall accrue at the
Default Rate.

(j)           
Fronting
Fee and Documentary and Processing Charges Payable to Issuer of Letters of
Credit.  The Company shall pay directly to Administrative Agent in
Dollars for its own account a fronting fee with respect to each Letter of
Credit, at the rate per annum specified in the Fee Letter, computed on the
Dollar Equivalent of the daily amount available to be drawn under such Letter
of Credit (i) with respect to standby Letters of Credit, payable on a quarterly
basis in arrears, and due and payable on the first Business Day after the end
of each March, June, September and December, commencing with the first such
date to occur after the issuance of such Letter of Credit, on the Letter of
Credit Expiration Date, and thereafter on demand and (ii) with respect to
commercial Letters of Credit, payable on the date of the issuance of such
Letter of Credit.  For purposes of computing the daily amount available to be
drawn under any Letter of Credit, the amount of such Letter of Credit shall be
determined in accordance with Section 1.03.  In addition, the Company
shall pay directly to Administrative Agent in Dollars for its own account the
customary issuance, presentation, amendment and other processing fees, and
other standard costs and charges, of Administrative Agent relating to letters
of credit as from time to time in effect.  Such customary fees and standard
costs and charges are due and payable on demand and are nonrefundable.

 (k)         
Conflict
with Issuer Documents.  In the event of any conflict between the terms
hereof and the terms of any Issuer Document, the terms hereof shall control.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

22

 

2.03.    
Manner
of Borrowing; Selection of Interest Option.

(a)          
Request
For Advance.  Each request by the Company to Administrative Agent for
an Advance under Section 2.01 (a "Request For Advance")
shall specify the aggregate amount of the requested Advance, the requested date
of the Advance, and, when the Request For Advance specifies a Eurodollar
Advance, the Interest Period applicable thereto.  The Company shall furnish to
Administrative Agent the Request For Advance by 10:00 a.m. central standard
time, at least three (3) Business Days before any requested Eurodollar
Advance date (which must be a Business Day) and one (1) Business Day before any
requested borrowing date (which must be a Business Day) for a Prime Rate
Advance.  Any such Request For Advance shall: (i) in the case of a Prime
Rate Advance, be in the form attached hereto as Exhibit D, and
(ii)  in the case of a Eurodollar Advance, be in the form attached hereto
as Exhibit E. 

Each Eurodollar
Advance shall be in a minimum amount of (i) $1,000,000, or any higher multiple
of $500,000 with respect to each Eurodollar Advance and (ii) $500,000, or any
higher multiple of $100,000 with respect to each Prime Rate Advance. If Company
intends to use the proceeds of an Advance to fund all or a portion of the cost
of an Acquisition, it shall advise Administrative Agent at the time that it submits
a Request For Advance (by so noting on the Request For Advance).

Before making a
Request For Advance, the Company may (without specifying whether the
anticipated Advance shall be a Prime Rate Advance or Eurodollar Advance)
request that Administrative Agent provide the Company with the most recent
Eurodollar Rate available to Administrative Agent.  Administrative Agent shall
endeavor to provide the quoted rates to the Company on the date of the request.

Each Request
For Advance is irrevocable and binding on the Company.  For any Advance
specified in a Request For Advance, the Company shall indemnify Lenders against
any cost, loss or expense incurred by Lenders as a result of the Company's
failure to fulfill, by the date specified for the Advance, the conditions to
the Advance set forth herein, including within that indemnity any cost, loss or
expense incurred because of the liquidation or reemployment of deposits or
other funds acquired by Lenders to fund the Advance if the Advance is not made
on the specified date because of the Company's failure.

(b)        Funding.

(i)           
Generally. 
Upon fulfillment of all applicable conditions set forth herein, Lenders shall
make available to the Company at Administrative Agent's Lending Office, not
later than 2:00 p.m. (central standard time) on the date of each Advance, the
proceeds of the Request for Advance.

(ii)          
Initial
Advance.  The initial Advance of the Revolving Credit Loan is deemed to
be the amount that is outstanding on the date hereof, previously funded by
Lenders.

(c)          
Selection
of Interest Option.  Subject to Section 2.03(d), on making
a proper Request For Advance under Section 2.03(a), the Company
shall advise Administrative Agent whether the Advance shall be (i) a
Eurodollar Advance, in which case the Company shall specify the applicable
Interest Period therefor, or (ii)  a Prime Rate  Advance.

By 10:00 a.m.
(central standard time) at least three (3) Business Days before the
termination of each Interest Period with respect to an outstanding Eurodollar
Advance, the Company shall give Administrative Agent notice (the "Rollover
Notice") of the interest option that shall be applicable to that
Advance on expiration of the Interest Period.  The Rollover Notice shall be
given either in writing or by telephone, immediately followed by written
notice.  If the Company specifies that the Advance shall be a Eurodollar
Advance, then the Rollover Notice shall also specify the length of the
succeeding Interest Period selected by the Company for the Advance, and if none
is selected, the Interest Period shall be one (1) month.  Each Rollover Notice
is irrevocable and effective on notification thereof to Administrative Agent.

If the required
Rollover Notice is not timely received by Administrative Agent before the
expiration  of the then‐relevant Interest Period, then Company shall be
deemed to have elected that the Advance be a Prime Rate Advance.  With respect
to any Prime Rate Advance, Company has the right, on any or Business Day, as
the case may be (a "Interest Rate Conversion Date"), to convert a
Prime Rate Advance to a Eurodollar Advance, by giving Administrative Agent a
Rollover Notice of such selection at least three (3) Business Days before
the Interest Rate Conversion Date.  Each conversion from a Prime Rate Advance
to a Eurodollar Advance shall be in a minimum amount of $1,000,000. or  any
higher multiple of $500,000.  Administrative Agent reserves the right to
require that the Rollover Notice be given a greater time in advance of
expiration of an Interest Period than is stated above, by notifying the Company
in writing of the new advanced notice time period.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

23

 

Notwithstanding
anything to the contrary contained herein, the Company may not request a
Eurodollar Advance if the interest rate applicable thereto under Section 2.05
would exceed the Maximum Rate in effect on the first day of the Interest Period
applicable to the Advance, but may give notice of the rate that it would have
selected, which notice shall be controlling for purposes of Section 4.05(c).

Each Request
For Advance is irrevocable and binding on the Company and, with respect to any
Eurodollar Advance specified in the Request For Advance, the Company shall
indemnify Lenders against any Consequential Loss incurred by Lenders as a
result of (i) any failure by the Company to fulfill, on or before the date
specified for the Advance, the conditions to the Advance set forth herein, or
(ii) the Company's requesting that an Advance not be made on the date
specified in the Request For Advance.  A certificate of each Lender
establishing the amount due from the Company according to the preceding
sentence, together with a description in reasonable detail of the manner in
which the amount has been computed, is conclusive in the absence of manifest
error.

(d)          
Limitation
on Rate Conversions.  To the extent that the Company selects for all or
part of a Loan to be a Eurodollar Advance, then the Company may convert the
existing Eurodollar Advances (or any portion thereof) to another type of
Advance during the applicable Interest Period; provided that the Company
complies with the requirements of Section 5.01(e) hereof.

(e)          
Initial
Interest Rate Selection.  The interest rates in effect on the date
hereof for the balances of the Loans that are outstanding shall continue in
effect until changed pursuant hereto, except that the Applicable
Margin (as defined in Section 2.05(d), below) on the date hereof
shall be that described in Section 2.05(d)(ii), below.

2.04.      
Loan
Fees.  In addition to the
payments required pursuant to Section 2.05 and 2.02(i) and (j),
the Company shall pay the following fees:

(a)          
Commitment
Fee.  The Company shall pay to each Lender a cash loan Commitment Fee
(herein so called) of 12.5 basis points of each Lender's allocation percentage
to this facility payable at Closing.

(b)          
Fee
Letter.  The Company shall pay to Administrative Agent all fees
indicated in that certain Fee Letter Agreement dated of even date herewith, by
and between the Company and Administrative Agent.

(c)          
Facility
Fee.  Company shall pay to Administrative Agent, for the benefit of
each Lender, quarterly in arrears on the first day of each calendar quarter,
beginning on October 1, 2004, a fee (the "Facility Fee") equal to
the Applicable Margin for the Facility Fee as set forth in Section 2.05(d)
multiplied by the actual daily amount by which the Revolving Credit Commitments
exceed the sum of (i) the Principal Debt of the Revolving Credit Loan plus
(ii) the Outstanding Amount of the Letter of Credit Exposure, each for the
prior quarter, to compensate Lenders for keeping those unused funds available
for the Company.  For purposes of computing the Facility Fee, Swing Line Loans
shall not be considered usage under the Revolving Credit Commitments.

(d)          
Computation
of Fees.  Fees shall be calculated on the basis of a year of 360 days
and the actual number of days elapsed.

2.05       
Interest
Rate.

(a)          
All
Advances.

(i)           
Prime
Rate Advances.  Subject to Section 2.05(b), the unpaid principal
of each Prime Rate Advance shall bear interest from the date of advance until
paid at a rate per annum that from day‐to‐day equals the lesser
of:  (a) the Prime Rate in effect from day‐to‐day, plus the
Applicable Margin (determined under Section 2.05(d)) or (b) the
Maximum Rate.

(ii)          
Eurodollar. 
Subject to Sections 2.03(c) and 2.05(b), the unpaid principal of
each Eurodollar Advance shall bear interest from the date of advance until paid
at a rate per annum equal to the lesser of (a) the sum of the Eurodollar
Rate for the applicable Interest Period, plus the Applicable Margin, or
(b) the Maximum Rate.

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

24

 

(b)          
Default
Rate.  All past due principal of, and to the extent permitted by
applicable law, interest on, the Notes shall bear interest until paid at the
lesser of (i) with respect to Eurodollar Advances, the Eurodollar Rate plus the
Applicable Margin from time-to-time in effect, plus two percent (2%), and with
respect to Prime Rate Advances, the Prime Rate plus the Applicable Margin from
time-to-time in effect, plus two percent (2%), or (ii) the Maximum Rate.

(c)          
Regulation
D Compensation.  For so long as any Lender maintains reserves against
"Eurocurrency liabilities" (or any other category of liabilities that includes
deposits by reference to which the interest rate on Eurodollar Advances is
determined, or any category of extensions of credit or other assets that
includes loans by a non‐United States office of such Lender to United
States residents), then such Lender may require the Company to pay,
contemporaneously with each payment of interest on a Eurodollar Advance,
additional interest on the unpaid principal amount of each Eurodollar Advance
equal to the actual costs of the reserves allocated to the Loan by such Lender
(as determined by such Lender in good faith, which determination shall be
conclusive absent manifest error).  If any  Lender requires payment of that
additional interest (x) such  Lender shall so notify the Company of the
additional interest on the Eurodollar Advances and (y) shall notify
Company at least five (5) Business Days before each Scheduled Installment Date
on which interest is payable on the Eurodollar Advances of the amount to which
such Lender is then entitled under this Section.

(d)          
Applicable
Margin. As used in this Agreement and the other Loan Documents,
"Applicable Margin" means, as to the Loans, a rate per annum
determined for each fiscal quarter during the Company's Fiscal Year, beginning
with the quarter ending September 30, 2004, by reference to the Leverage Ratio
as of the end of the fiscal quarter (herein called the "date of
determination"), as set forth in the most recent Compliance Certificate
received by Administrative Agent pursuant to Section 8.01(d) and the
type of Advance or Facility Fee, as applicable, as follows:

(i)          
if,
on any date of determination, the following is met:  the Leverage Ratio
is equal to or less than 1.00 to 1.0, then the Applicable Margin
during the fiscal quarter following the date of determination, expressed as a
rate per annum, shall be (0.00%) for Prime Rate Advances, 1.00% for Eurodollar
Advances, and 0.125% for the Facility Fee; and if not, then

(ii)         
if,
on any date of determination, the following is met: the Leverage Ratio
is greater than 1.00 to 1.0 and less than or equal to 1.50 to 1.0, then
the Applicable Margin during the fiscal quarter following the date of
determination, expressed as a rate per annum, shall be (0.00%) for Prime
Rate Advances, 1.25% for Eurodollar Advances, and 0.125% for the Facility
Fee; and if not, then. 

(iii)        
if,
on any date of determination, the following is met: the Leverage Ratio
is greater than 1.50 to 1.0 and less than or equal to 2.00 to 1.0, then
the Applicable Margin during the fiscal quarter following the date of
determination, expressed as a rate per annum, shall be (0.00%) for Prime
Rate Advances, 1.50% for Eurodollar Advances, and 0.125% for the Facility
Fee; and if not, then

(iv)        
if,
on any date of determination, the following is met: the Leverage Ratio
is greater than 2.00  to 1.0 and less than or equal to 2.50 to 1.0, then
the Applicable Margin during the fiscal quarter following the date of
determination, expressed as a rate per annum, shall be (0.125%) for Prime
Rate Advances, 1.75% for Eurodollar Advances, and 0.25% for the Facility
Fee; and if not, then

(v)          
if,
on any date of determination, the following is met: the Leverage Ratio
is greater than 2.50  to 1.0, then the Applicable Margin during
the fiscal quarter following the date of determination, expressed as a rate per
annum, shall be (0.25%) for Prime Rate Advances, 2.00% for Eurodollar
Advances, and 0.25% for the Facility Fee.

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

25

For
Eurodollar Advances, the Applicable Margin for a Loan Year applies both to
(i) Advances made during the current Loan Year and (ii) Advances
outstanding during the current Loan Year that were made during a prior Loan
Year.

If the interest rate changes hereunder because of a change in the
Applicable Margin, interest shall accrue at the changed rate beginning the
first day of the month  after the earlier of the date on which the Company
provides, or by which it was required to provide, pursuant to Section
8.01(d) of this Agreement, the financial information necessary to determine
the Applicable Margin.  The Applicable Margin in effect from the Closing Date
through the delivery of the Compliance Certificate for the period ending
September 30, 2004 shall be determined based upon Pricing Level 2 as set forth
in clause (ii) above.

ARTICLE 3

Intentionally
Reserved

ARTICLE 4

NOTES AND NOTE PAYMENTS; GUARANTIES

4.01.      
Revolving
Credit Notes.  The Advances made by each Lender under
Section
2.03(a) with respect to the Revolving Credit Loan shall be evidenced by  promissory
notes (the "Revolving Credit Note(s)") of the Company, which
Revolving Credit Notes shall (i) be dated the date hereof, (ii) be in the
amount of each Lender's  Revolving Credit Commitment, (iii) be payable to the
order of each Lender at each Lender's Lending Office, (iv) bear interest in
accordance with Section 2.05, and (v) be in the form of Exhibit B
attached hereto, with blanks appropriately completed in conformity with this
Loan Agreement. Notwithstanding the face principal amount of the Revolving
Credit Note, the amount of principal actually owing on the Revolving Credit
Note at any given time shall be the aggregate of all Advances theretofore made
to the Company hereunder, less all payments of principal theretofore actually
received hereunder by each Lender.

4.02.      
Swing
Line Notes.  The Swing Line Principal
Debt owed to the Swing Line Lender shall be evidenced by a Swing Line Note,
payable to the Swing Line Lender in the stated principal amount of the Swing
Line Subfacility.  The Company shall repay each Swing Line Loan on the earlier
to occur of (i) the date demand is made  by Swing Line Lender, provided that
demand shall not be made prior to the date that is ten (10) Business Days after
the Swing Line Loan is made, or (ii) the Termination Date.

4.03.      
Principal
Payments.  The unpaid
principal amount of the Revolving Credit Note shall be due and payable on the
Termination Date.

4.04.      
Prepayments.

(a)          
Optional
Prepayments.  The Company may prepay the principal of any Note then
outstanding, in whole or in part, at any time or from time to time, on one (1)
Business Day's notice for Prime Rate Advances and three (3) Business Days'
notice for Eurodollar Advances, each such notice to be received by
Administrative Agent not later than 10:00 a.m. on such Business Day; provided,
however, that (i) each prepayment of less than the full outstanding
principal balance of any Note shall be in an amount equal to $25,000 or an
integral multiple thereof, (ii) if Company prepays the principal of any
Eurodollar Advance on any date other than the last day of the Interest Period
applicable thereto, Company shall make the payments required by Section
5.01(e). 

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

26

(b)          
Mandatory
Prepayments.  

                (i)            On
any date of determination, if the unpaid principal balance of the Revolving
Credit Loan exceeds the Revolving Credit Commitments, then the Company shall
immediately prepay the Revolving Credit Loan in at least the amount of such
excess, together with (A) all accrued and unpaid interest on such principal
prepaid, and (B) any amounts payable pursuant to Section 5.01 arising as
a result thereof.

                (ii)           Immediately
upon the receipt thereof, the Company shall prepay the unpaid principal balance
of the Revolving Credit Loan in an amount equal to each Lenders Pro Rata Share
of 100% of the Net Cash Proceeds of any Equity Issuance; provided however
that, the mandatory prepayment under this clause (b)(ii) shall exclude
any Net Cash Proceeds from any Equity Issuances under the Company's stock
option plan. 

(b)          
General
Prepayment Provisions.  Any prepayment of a Note hereunder shall be (i)
made together with interest accrued (through the date of the prepayment) on the
principal amount prepaid, and (ii) applied first to accrued interest and then
to principal.

4.05.    
Payment
of Interest on the Notes.

(a)          
Revolving
Credit Notes.  Interest on the unpaid principal amount of each Prime
Rate Advance under each Revolving Credit Note shall be payable quarterly as it
accrues on the first (1st) Business Day of each January, April,
July, and October hereafter, commencing October 1, 2004, and at the
Termination Date.  Interest on any Eurodollar Advance shall be payable at the
end of the applicable Interest Period and at the Termination Date; provided
however, that if any Interest Period for any Eurodollar Advance exceeds
three months, interest shall also be payable on the respective dates that fall
every three months after the beginning of such Interest Period.

(b)          
Recapture
Rate.  If, on any interest payment date, Administrative Agent does not
receive interest on the Notes computed (as if no Maximum Rate limitations were
applicable) at the applicable contract rate selected by the Company pursuant to
Section 2.05, because the applicable contract rate selected or
desired to be selected by the Company exceeds or has exceeded the Maximum Rate,
then the Company shall, upon the written demand of Administrative Agent, pay to
Administrative Agent, in addition to interest otherwise required hereunder, on
each interest payment date thereafter, the Excess Interest Amount (hereinafter
defined) calculated as of such later interest payment date; provided, however,
that in no event shall the Company be required to pay, for any appropriate
computation period, interest at a rate exceeding the Maximum Rate effective
during such period.  The term "Excess Interest Amount" means, on any
date, the amount by which (a) the amount of all interest that would have
accrued before that date on the principal of a Note (had the applicable
contract rate(s) selected or desired to be selected by the Company at all times
been in effect, without limitation by the Maximum Rate) exceeds (b) the
aggregate amount of interest actually paid to Administrative Agent on the
particular Note on or before that date.

4.06.      
Computation
of Interest Rates.  Subject to applicable usury laws,
interest shall be calculated on the basis of a year of 360 days and the actual
number of days elapsed for Eurodollar Advances and on the basis of a year of
365 or 366 days, as the case may be, and the actual number of days elapsed for
Prime Rate Advances. All past-due principal and accrued and unpaid interest
shall bear interest from maturity until paid at the rate provided for in Section 2.05(b).

4.07.      
Manner
and Application of Payments.  All payments of principal of, and
interest on, any Note to or for the account of the Lenders shall be made by the
Company to Administrative Agent before 2:00 pm. (Central Standard time),
on the due date, in Federal or other immediately available funds at
Administrative Agent's Lending Office without condition or deduction for any
counterclaim, defense, recoupment or setoff.  If the principal of, or any
installment of the principal or interest on, a Note, or any Commitment Fee,
Facility Fee, Administrative Fee, or any other required fee under this Loan
Agreement becomes due and payable on a day other than a Business Day, the
maturity thereof shall be extended to the next succeeding Business Day. The
Company shall designate whether payments made on the Notes, prior to a default
thereunder, are to be applied to principal or interest payments and
Administrative Agent shall so apply those payments. If the Company fails to
designate how a payment will be applied, or after an Event of Default or
Potential Default occurs, all payments made on any Note shall be credited, to
the extent of the amount thereof, in the following manner:  (i) first,
against the amount of interest accrued and unpaid on the Notes, as of the date
of payment; (ii) second, against all principal (if any) due and
owing on the Notes, as of the date of payment; (iii) third, as a
prepayment of outstanding Prime Rate Advances under the Notes; and (iv) fourth,
as a prepayment of outstanding Eurodollar Advances under the Notes.  The
Company shall select Prime Rate Advances and Eurodollar Advances to be repaid
in a manner designated to minimize the Consequential Loss, if any, resulting
from those payments; and provided further that, if the Company
fails to select the Prime Rate Advances or  Eurodollar Advances to which
payments are to be applied, or if an Event of Default has occurred and is
continuing at the time of payment, then Administrative Agent may apply the
payment to the Prime Rate Advances or Eurodollar Advances in a manner that
Administrative Agent  believes in its sole discretion, minimizes the
Consequential Loss.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

27

 

4.08.      
Lending
Office.  Each Lender may (a) designate its
principal office or a foreign branch, subsidiary or affiliate of such Lender as
its lending office (and the office to whose accounts payments are to be
credited) for any Eurodollar Advance, (b) designate its principal office or a
domestic branch, subsidiary or affiliate as its lending office (and the office
to whose accounts payments are to be credited) for any Prime Rate Advance, and
(c) change its lending offices from time to time by notice to the Company.  In
such event, such Lender shall continue to hold the Notes evidencing its loans
for the benefit and account of such foreign branch, subsidiary or affiliate. 
Each Lender shall be entitled to fund all or any portion of the Loans in any
manner that it deems appropriate, but for the purposes of this Loan Agreement
each Lender shall, regardless of such Lender's actual means of funding, be
deemed to have funded its Loans in accordance with the interest option from
time to time selected by the Company for such Advance.

4.09.      
Taxes.  The Company shall pay any present or
future stamp or documentary taxes or any other excise or property taxes,
charges or similar levies that arise from any payment made hereunder or under
the Loan Documents or from the execution, delivery or registration of, or
otherwise with respect to, this Agreement or the other Loan Documents
(hereinafter referred to as "Other Taxes"). The Company shall
indemnify each Lender for the full amount of any and all present or future
taxes, levies, imposts, deductions, charges or withholdings and all liabilities
with respect thereto (hereinafter referred to as "Taxes"), or
Other Taxes (including, without limitation, any Taxes or Other Taxes imposed by
any jurisdiction on amounts payable under this Section 4.09) paid by
such Lender or Administrative Agent any liability (including penalties and
interest) arising therefrom or with respect thereto, whether or not the Taxes
or Other Taxes were correctly or legally asserted, but the Company shall have
no responsibility for each Lenders' income taxes. This indemnification shall be
made within 30 days from the date any Lender or Administrative Agent makes written
demand therefor. Without prejudice to the survival of any other agreement of
the Company hereunder, the agreements and obligations of Company contained in
this Section 4.09 shall survive the payment in full of principal and
interest hereunder and under the other Loan Documents.

4.10.      
Guaranties.  Payment of the Notes and payment and
performance of the obligations and indebtedness of the Company under the Loan
Documents shall be guaranteed by each member of the Obligated Group (except the
Company) (collectively, the "Guarantors"), pursuant to the terms
of the guaranty agreements (herein referred to as the "Guaranty Agreement"),
the form of which is attached hereto as Exhibit F.

4.11       
Sharing
of Payments by Lenders.   If any Lender shall, by exercising any
right of setoff or counterclaim or otherwise, obtain payment in respect of any
principal of or interest on any of the Loans made by it, resulting in such
Lender's receiving payment of a proportion of the aggregate amount of such
Loans greater than its Pro Rata Share thereof as provided herein, then the
Lender receiving such greater proportion shall (a) notify Administrative Agent
of such fact, and (b) purchase (for cash at face value) participations in the
Loans of the other Lenders, or make such other adjustments as shall be
equitable, so that the benefit of all such payments shall be shared by the
Lenders ratably in accordance with the aggregate amount of principal of and accrued
interest on their respective Loans and other amounts owing them, provided
that:

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

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

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

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

28

 

4.12       
Obligations
of Lenders Several.  The obligations of the Lenders hereunder
to make Loans, to fund participations in Letters of Credit and Swing Line Loans
and to make payments pursuant to Section 12.16(c) are several and not
joint.  The failure of any Lender to make any Loan, to fund any such
participation or to make any payment under Section 12.16(c) on any date
required hereunder shall not relieve any other Lender of its corresponding
obligation to do so on such date, and no Lender shall be responsible for the
failure of any other Lender to so make its Loan, to purchase its participation
or to make its payment under Section 12.16(c).

ARTICLE
5

SPECIAL PROVISIONS FOR EURODOLLAR ADVANCES

5.01.       Special Provisions for Eurodollar Advance.

(a)          
Inadequacy
of Eurodollar Pricing.  If with respect to an Interest Period for any
Eurodollar Advance, any Lender determines that the Eurodollar Rate as
determined by that Lender will not adequately and fairly reflect the cost to
that Lender of maintaining or funding the Eurodollar Advance for such Interest
Period, then Administrative Agent shall forthwith give notice thereof to
Company, whereupon until Administrative Agent notifies Company that the
circumstances giving rise to the suspension no longer exist, (a) the
obligations of the Lenders to make Eurodollar Advances shall be suspended and
(b) Company shall either (i) repay in full the then‐outstanding
principal amount of the Eurodollar Advances, together with accrued interest
thereon on the last day of the then current Interest Period applicable to the
Eurodollar Advances, or (ii) convert the Eurodollar Advances to Prime Rate
Advances in accordance with Section 2.03(c) of this Loan Agreement
on the last day of the then‐current Interest Period applicable to each of
the Eurodollar Advances.

(b)          
Illegality
of Eurodollar Advances.  If, after the date of this Loan Agreement, the
adoption of any applicable law, rule or regulation, or any change therein, 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 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 shall make it unlawful or impossible for any
Lender to make, maintain or fund its Eurodollar Advances, such Lender shall
forthwith give notice thereof to Administrative Agent and the Company.  Before
giving any notice pursuant to this Subsection, such Lender shall designate a
different Eurodollar lending office if the designation will avoid the need for
giving the notice and will not be otherwise disadvantageous to such Lender (as
determined in good faith by such Lender).  Upon receipt of the notice, Company
shall either (i) repay in full the then outstanding principal amount of
the Eurodollar Advance, together with accrued interest thereon, or
(ii) convert the Eurodollar Advance to a Prime Rate Advance, on either
(a) the last day of the then current Interest Period applicable to the
Eurodollar Advance if such Lender may lawfully continue to maintain and fund the
Eurodollar Advance to that day or (b) immediately if any Lender may not
lawfully continue to fund and maintain the Eurodollar Advance to that day.

(c)          
Increased
Costs for Eurodollar Advances.  If, after the date hereof, any
Governmental Authority, central bank or other comparable authority, at any time
imposes, modifies or deems applicable any reserve (including, without
limitation, any imposed by the Board of Governors of the Federal Reserve System
but excluding any reserve requirement included in the Eurodollar Reserve
Requirement), special deposit or similar requirement against assets of,
deposits with or for the account of, or credit extended by, any Lender, or
shall impose on any Lender (or its Eurodollar lending office) or the Interbank
Eurodollar market any other condition affecting its Eurodollar Advances, the
Notes or its obligation to make Eurodollar Advances; and the result of any of
the foregoing is to increase the cost to such Lender of making or maintaining
its Eurodollar Advances, or to reduce the amount of any sum received or
receivable by such Lender under this Loan Agreement, or under the Notes, by an
amount deemed by any Lender to be material, then, within five (5) days after
demand by such Lender, Company shall pay to such Lender such additional amount
or amounts as will compensate such Lender for the increased cost or reduction. 
Such Lender will use good faith and reasonable efforts to designate a different
lending office for Eurodollar Advances of such Lender if the designation will
avoid the need for, or reduce the amount of, the compensation and will not, in
the sole opinion of such Lender, be disadvantageous to such Lender (provided
that such Lender has no obligation to so designate a lending office located in
the United States of America).  A certificate of such Lender claiming
compensation under this Section and setting forth in reasonable detail
the computation of the additional amount or amounts to be paid to it hereunder
is conclusive in the absence of manifest error.  If such Lender demands
compensation under this Section, then Company may at any time, on giving
at least five (5) Business Days' prior notice to such Lender, either
(i) repay in full the then outstanding Eurodollar Advances, together with
accrued interest thereon to the date of prepayment or (ii) convert the
Eurodollar Advances to a Prime Rate Advance in accordance with the provisions
of this Loan Agreement.

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

29

 

(d)          
Effect
on Prime Rate Advances.  If notice has been given pursuant to Section 5.01(a)
or Section 5.01(b) requiring the Eurodollar Advances to be repaid
or converted, then until such Lender notifies the Company the circumstances
giving rise to the repayment no longer apply, all Advances shall be Prime Rate
Advances.  If such Lender notifies the Company that the circumstances giving
rise to the repayment no longer apply, Company may thereafter select Advances
to be Eurodollar Advances in accordance with Section 2.03(c) of
this Loan Agreement.

(e)          
Payments
Not At End of Interest Period.  If Company makes any payment of principal
with respect to any Eurodollar Advance on any day other than the last day of an
Interest Period applicable to the Eurodollar Advance, then Company shall
reimburse such Lender on demand the Consequential Loss incurred by such Lender
as a result of the timing of the payment; provided however, that the
Company shall not be required to reimburse such Consequential Loss if Lenders
require the payment on a day other than the last day of an Interest Period
because of the occurrence of an event specified in Section 5.01(a) (b)
or (c) and the occurrence of such event is beyond
the control of the Company.    A certificate of such Lender
setting forth in reasonable detail the basis for the determination of the
amount of Consequential Loss shall be delivered by such Lender to the Company,
and shall, in the absence of manifest error, be conclusive and binding.  Any
conversion of a Eurodollar Advance to a Prime Rate Advance on any day other
than the last day of the Interest Period for the Eurodollar Advance shall be
deemed a payment for purposes of this Section.

ARTICLE
6

REPRESENTATION AND WARRANTIES

To induce the Lenders to make the Loans hereunder, the Company or the
appropriate Obligated Group member, as appropriate, represents and warrants to
the Lenders that:

6.01.      
Organization
and Good Standing. The Company and each of its Subsidiaries
that is a corporation is duly organized and existing in good standing under the
laws of the state or country of its incorporation, is duly qualified as a
foreign corporation and in good standing in all states in which it is doing
business and has the corporate power and authority to own its properties and
assets and to transact the business in which it is engaged and is or will be
qualified in those states wherein it proposes to transact business in the
future.  Subsidiaries that are not corporations have a comparable status
appropriate to their form.

6.02.      
Authorization
and Power.  The Company and each member of the
Obligated Group has the corporate power and requisite authority to execute,
deliver and perform this Loan Agreement, the Notes and the other Loan Documents
to be executed by them; the Company and each member of the Obligated Group is
duly authorized to, and has taken all corporate action necessary to authorize
the Company and each member of the Obligated Group, as appropriate, to,
execute, deliver and perform this Loan Agreement, the Notes and such other Loan
Documents executed by them and is and will continue to be duly authorized to
perform this Loan Agreement, the Notes and such other Loan Documents.

6.03.      
No
Conflicts or Consents.  Neither the execution and delivery of
this Loan Agreement, the Notes or the other Loan Documents, nor the
consummation of any of the transactions herein or therein contemplated, nor
compliance with the terms and provisions hereof or with the terms and provisions
thereof, will contravene or materially conflict with any provision of law,
statute or regulation to which the Company or any member of the Obligated Group
is subject, or any judgment, license, order or permit applicable to the Company
or any member of the Obligated Group, or any indenture, loan agreement,
mortgage, deed of trust, or other agreement or instrument to which the Company
or any member of the Obligated Group is a party or by which the Company or any
member of the Obligated Group may be bound, or to which the Company or any
member of the Obligated Group may be subject, or violate any provision of the
Charter or Bylaws of the Company or any member of the Obligated Group. No
consent, approval, authorization or order of any court or governmental
authority or third party is required in connection with the execution and
delivery by the Company or any member of the Obligated Group of the Loan
Documents or to consummate the transactions contemplated hereby or thereby.

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

30

 

6.04.      
Enforceable
Obligations.  This Loan Agreement, the Notes and the
other Loan Documents are the legal and binding obligations of the Company and
any signatory member of the Obligated Group, enforceable in accordance with
their respective terms, except as limited by bankruptcy, insolvency or other
laws of general application relating to the enforcement of creditors' rights.

6.05.      
No
Liens.  Except for Permitted
Liens, all of the properties and assets of the Company and its Subsidiaries
(that are members of the Obligated Group) are free and clear of all mortgages,
liens, encumbrances and other adverse claims of any nature, and such
corporations have and will have good and marketable title to such properties
and assets.

6.06.      
Financial
Condition.  The Company has
delivered to Administrative Agent copies of the consolidated balance sheet of
the Company and its Consolidated Subsidiaries as of December 31, 2003, and the
related consolidated statements of income, stockholders' equity and changes in
financial position for the year ended such date, certified by independent
certified public accountants acceptable to Administrative Agent; such financial
statements are true and correct, fairly present the financial condition of the
Company and its Consolidated Subsidiaries as of such date and have been
prepared in accordance with GAAP applied on a basis consistent with that of
prior periods; as of the date hereof, there are no obligations, liabilities or
indebtedness (including contingent and indirect liabilities and obligations or
unusual forward or long-term commitments) of the Company or any of its
Consolidated Subsidiaries which are (separately or in the aggregate) material
and are not reflected in such financial statements, except the Indebtedness
permitted herein; no changes having a Material Adverse Effect have occurred in
the financial condition or business of Company or any of its Consolidated
Subsidiaries since June 30, 2004.

6.07.      
Full
Disclosure.  There is no
material fact that the Company has not disclosed to Lender which could have a
Material Adverse Effect on the properties, business, prospects or condition
(financial or otherwise) of the Company or any of its Subsidiaries. Neither the
financial statements referred in Section 6.06, nor any certificate or
statement delivered herewith or heretofore by the Company to Administrative
Agent in connection with negotiations of this Loan Agreement, contains any
untrue statement of a material fact or omits to state any material fact
necessary to keep the statements contained herein or therein from being
misleading.

6.08.      
No
Default.  No event has
occurred and is continuing which constitutes an Event of Default or Potential
Default.

6.09.      
Material
Agreements.  Neither the
Company nor any of its Subsidiaries is in default in any material respect under
any loan agreement, indenture, mortgage, security agreement or other material
agreement or obligation to which it is a party or by which any of its
properties is bound.

6.10.      
Pending
Litigation.  Except as set
forth on Exhibit P, There are no actions, suits or legal, equitable,
arbitration or administrative proceedings pending or, to the knowledge of the
Company, threatened, against the Company or any of its Subsidiaries that would,
if adversely determined, have a Material Adverse Effect, except as described in
the Company's December 31, 2003,  year-end financial statements (the "Significant
Litigation"). The amount(s) of any judgment(s) resulting from the
Significant Litigation (if adversely determined) are fully insured (less
customary deductibles) by one or more binding and enforceable insurance
policies in favor of the Company and its Subsidiaries, which policies are
issued in accordance with the provisions of this Loan Agreement, or adequate
reserves to satisfy them are reflected on the balance sheet.

6.11.      
Regulatory
Defects.  Except as described
in the Company's December 31, 2003 year-end financial statements, the
Company has not received notice of, or is aware of, any Regulatory Defects (as
defined in Section 6.16, below).

6.12.      
Use
of Proceeds; Margin Stock.  The proceeds of the Loans will be used by
the Company solely for the purposes specified in the preamble. None of such
proceeds will be used to purchase or carry any "margin stock" as defined in
Regulation U of the Board of Governors of the Federal Reserve System (12 C.F.R.
Part 221 and 207), or to reduce or retire any indebtedness originally incurred
to purchase or carry a margin stock or for any other purpose that might
constitute this transaction a "purpose credit" within the meaning of such
Regulation U. The Company is not engaged in the business of extending credit
for the purpose of purchasing or carrying margin stocks. Neither the Company
nor any Person acting on behalf of the Company has taken or will take any
action that might cause the Notes or any of the other Loan Documents, including
this Agreement, to violate Regulations U or any other regulations of the Board
of Governors of the Federal Reserve System or to violate Section 7 of the
Securities Exchange Act of 1934 or any rule or regulation thereunder, in each
case as now in effect or as the same may hereinafter be in effect. The Company
and its Subsidiaries own no "margin stock" except for that described in the
financial statements referred to in Section 6.06 and, as of the date
hereof, the aggregate value of all "margin stock" owned by the Company and its
Subsidiaries does not exceed 25% of all of the value of all of the Company's
and its Subsidiaries' assets.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

31

 

6.13.      
No
Financing of Corporate Takeovers.  No proceeds of the Loans will be used to
acquire any security in any transaction that is subject to Section 13 or 14 of
the Securities Exchange Act of 1934, including particularly (but without
limitation) Section 13(d) and 14(d) thereof.

6.14.      
Taxes.  All tax returns required to be filed by
the Company or any Subsidiary in any jurisdiction have been filed and all taxes
(including mortgage recording taxes), assessments, fees and other governmental
charges upon the Company or any Subsidiary or upon any of its or their
properties, income or franchises have been paid prior to the time that such
taxes could give rise to a lien thereon, other than such taxes as are being
contested in good faith by the Company or any Subsidiary, and with respect to
which the Company or its respective Subsidiary has made appropriate reserves
for the payment of such taxes, including, appropriate reserves for any penalty
or interest which might arise as a result of such contest and/or late payment.
There is no proposed tax assessment against the Company or any Subsidiary and
there is no basis for such assessment.

6.15.      
Principal
Office, Etc.  The principal office and place of business of the
Company is at 1502 East Walnut, Seguin, Texas 78155. The Company maintains its
principal records and books at that address.

6.16.      
Compliance
with Law. The Company and its
Subsidiaries are in compliance with all laws, rules, regulations, orders and
decrees applicable to the Company or any Subsidiary, or its or their
properties, including without limitation and to the extent applicable, the Interstate
Commerce Act, as amended, the violation of which would have a Material Adverse
Effect (collectively, "Applicable Laws"). Any breach, violation
or notice of violation, made or claimed by a Governmental Authority, of any
Applicable Laws is sometimes referred to as a "Regulatory Defect".

6.17.      
Government
Regulation.  The Company is
not subject to regulation under the Public Utility Holding Company Act of 1935,
the Federal Power Act or the Investment Company Act of 1940 (as any of the
preceding acts have been amended), or any other law (other than Regulation X)
that regulates the incurring by the Company of indebtedness, including without
limitation, laws relating to common contract carriers or the sale of electricity,
gas, steam, water or other public utility services.

6.18.      
Insider.  The Company is not, and no Person having
"control" (as that term is defined in 12 U.S.C. §375(b) (5) or in regulations
promulgated pursuant thereto) of the Company is, an "executive officer",
"director", or "person who directly or indirectly or in concert with one or
more persons owns, controls, or has the power to vote more than 10% of any
class of voting securities" (as those terms are defined in 12 U.S.C. §375(b) or
in regulations promulgated pursuant thereto) of any Lender, of the bank holding
company of which any Lender is a subsidiary, or of any subsidiary of the bank
holding company of which any Lender is a subsidiary, or of any bank at which
any Lender maintains a correspondent account, or of any bank which maintains a
correspondent account with any Lender.

6.19.      
No
Subsidiaries.  Except for the
Subsidiaries described on Exhibit G, the Company has not formed or
acquired any Subsidiary.

6.20.      
Representations
and Warranties.  Each Request For Advance shall
constitute, without the necessity of specifically containing a written
statement, a representation and warranty by the Company that no Event of
Default or Potential Default exists and that all representations and warranties
contained in this Article 6 or in any other Loan Document are true and
correct at and as of the date the Advance is to be made.

6.21.      
Survival
of Representations, Etc.  All representations and warranties by the Company
herein shall survive delivery of the Notes and the making of the Revolving
Credit Loan, and any investigation at any time made by or on behalf of
Administrative Agent or any Lender shall not diminish their right to rely
thereon.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

32

 

ARTICLE 7

CONDITIONS PRECEDENT

7.01.    Initial
Advance.  The obligation of
Lender(s) to make the initial Advance hereunder (that is, this Loan Agreement
is not effective, and the Company may not request any Advance after the date
hereof, without satisfaction of these conditions) is subject to the condition
precedent that, on or before the date of the Advance, Administrative Agent
shall have received the following, each dated as of the date of such Advance,
in form and substance satisfactory to Administrative Agent and its counsel, and
each of the Lenders:

(a)          
Payments
To Lender.  The Company has paid to Administrative Agent (i) all
fees to be received pursuant to this Loan Agreement or any other Loan Document,
including all Commitment Fees, Administrative Fee and Facility Fees, to the
extent owed, (ii) all third party costs incurred in connection with the
Loans, including an amount equal to the estimated attorney's fees, costs and
out-of-pocket expenses of Lenders' and Administrative Agents' counsel incurred
in connection with the preparation, execution and delivery of the Loan Documents
and the consummation of the transactions contemplated thereby; and

(b)          
Delivery
Of Documents.  Administrative Agent has received counterparts of each
of the documents listed on Exhibit A, where appropriate to be duly
executed by the proper signatory and, including the Guaranties, dated as of the
date of the Advance, and each in form and substance satisfactory to
Administrative Agent;

(c)          
Certificates. 
Certificates of existence and good standing for Company and each member of the
Obligated Group issued by the Secretary of State and Comptroller of Public
Accounts of the state of incorporation, each dated within thirty (30) days of
this Agreement; and

(d)          
Additional
Information.  Such other documents, instruments and information as may
reasonably be required by Administrative Agent and of the Lenders or their
respective counsel including, without limitation, information regarding
litigation, tax, accounting, labor, insurance, pension liabilities (actual or
contingent), real estate leases, material contracts, debt agreements, property
ownership, and contingent liabilities of the Company and its Subsidiaries. 

7.02.    All
Advances.  The obligation of
Lenders to make any Advance under this Loan Agreement (including the initial
Advance) is subject to satisfaction of the following conditions precedent:

(a)          
No
Defaults.  As of the date of the making of the Advance, there exists no
Event of Default or Potential Default.

(b)          
Compliance
with Loan Agreement.  The Company shall have performed and complied
with all agreements and conditions contained herein that are required to be
performed or complied with by the Company before or at the date of the Advance.

(c)          
No
Material Adverse Change.  As of the date of making the Advance, no
change has occurred since June 30, 2004 in the business or financial condition
of the Company or any of its Subsidiaries that has a Material Adverse Effect.

(d)          
Request
For Advance.  Administrative Agent has received from the Company and
property completed, executed Request For Advance in the form of Exhibit D
or Exhibit E, as appropriate, executed by any authorized officer or
director of the Company.

(e)          
Compliance
Certificate.  Administrative Agent shall have received from the Company
a Compliance Certificate, in the form of Exhibit J, signed by the
President, Chief Financial Officer, Controller or Vice
President - Administration of the Company, all of the statements of
which shall be true and correct, certifying that, as of the date thereof, (i)
all of the representations and warranties contained in this Loan Agreement and
each of the Loan Documents executed by the Company are true and correct, (ii)
no event has occurred and is continuing, or would result from the Advance,
which constitutes an Event of Default or Potential Default, and (iii) such
other facts as Lender may reasonably request.

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

33

(f)           
Representations
and Warranties.  The representations and warranties contained in Article 6
are true in all respects on the date of making of the Advance, with the same force
and effect as though made on and as of that date.

(g)          
Bankruptcy
Proceedings.  No proceeding or case under the United States Bankruptcy
Code shall have been commenced by or against the Company or any other member of
the Obligated Group.

(h)          
Other
Proceedings.  As of the date of the Advance, no action, suit,
investigation or proceeding shall be pending or threatened in any court or
before any arbitrator or Governmental Authority that, if determined adversely
to the Company or any member of the Obligated Group, could have a Material
Adverse Effect.

ARTICLE 8

AFFIRMATIVE COVENANTS

So long as the
Lenders have any commitment to make Advances hereunder, and until payment in
full of the Notes and the performance of the Obligation, the Company agrees
that (unless Required Lenders shall otherwise consent in writing):

8.01.    
Financial
Statements, Reports and Documents.  The Company shall deliver to Administrative
Agent, the following:

(a)          
Quarterly
Statements.  As soon as available and in any event within forty-five
(45) days after the end of each of the first three fiscal quarters of the
Company, copies of the consolidated, Company-prepared statements of the Company
and its Consolidated Subsidiaries as of the end of such fiscal period, that
includes a balance sheet as of the end of the quarterly fiscal period, and
statements of income and retained earnings of the Company and its Consolidated
Subsidiaries for that period and for the portion of the Fiscal Year ending with
that period, in each case setting forth in comparative form the figures for the
corresponding period of the preceding fiscal year, all in reasonable detail,
and a statement of shareholder's equity, and certified by the President, Vice
President - Controller, or Vice President - Administration of the Company as
being true and correct and as having been prepared in accordance with GAAP,
subject to year-end audit and adjustments;

(b)          
Annual
Statements.  As soon as available and in any event within one hundred
twenty (120) days after the close of each Fiscal Year of the Company,
copies of the consolidated (and, on a Company-prepared, unaudited basis,
consolidating) balance sheet of the Company and its Consolidated Subsidiaries
as of the close of such Fiscal Year and statements of income and retained
earnings and changes in cash flows of the Company and its Consolidated
Subsidiaries for such fiscal year, in each case setting forth in comparative form
the figures for the preceding fiscal year.  The financial statements required
to be delivered in connection with this Section 8.01(b) shall be
audited and, therefore, shall be accompanied by an opinion thereon (which shall
not be qualified by reason of any limitation imposed by the Company) of an
independent public accounting firm of recognized standing selected by the
Company and satisfactory to Administrative Agent, to the effect that such
financial statements have been audited and prepared in accordance with GAAP
consistently maintained and applied (except for changes in which such
accountants concur) and that the examination of such accounts in connection
with such financial statements has been made in accordance with generally
accepted auditing standards and, accordingly, includes such tests of the
accounting records and such other auditing procedures as were considered
necessary in the circumstances;

(c)          
SEC
and Other Reports.  Promptly upon their becoming available, one copy of
each financial statement, report, notice or proxy statement sent by Company to
stockholders generally and of each regular or periodic report, registration
statement or prospectus filed by Company with any securities exchange or the
Securities and Exchange Commission or any successor agency (including 10-K and
10-Q reports), and of any order issued by any Governmental Authority in any
proceeding to which Company is a party; 

(d)          
Compliance
Certificate.  Within forty-five (45) days after the end of each
first three fiscal quarters of the Company, and concurrent with the delivery of
the annual financial statements that must delivered pursuant to Section
8.01(b), a certificate executed by the President, Chief Financial Officer,
Controller or Vice President‐Administration of the Company, stating that
a review of the activities of the Company and its Consolidated Subsidiaries
during that fiscal quarter has been made under the officer's supervision and
that the Company and its Consolidated Subsidiaries have performed each and every
obligation and covenant contained herein and are not in default under any of
the same or, if a default has occurred, specifying the nature and status
thereof, and setting forth a computation in reasonable detail as of the end of
the period covered by such statements, of compliance, to the extent required,
with Sections 8.14, 8.15, 8.16, 8.17, and 8.18 
in addition to the foregoing, and within 120 days after the close of each
fiscal year of the Company, the President, Vice President - Controller, or Vice
President ‐ Administration of the Company shall certify to Administrative
Agent in writing that there is no condition or event that would constitute a
Potential Default or an Event of Default under any of the terms or provisions
of this Agreement (insofar as any of those terms or provisions pertain to
accounting or financial matters) and, if any such condition or event then
exists, specifying the nature and period of existence thereof.  The compliance
certificates described in this Section 8.01 shall be in substantially
the form of the attached Exhibit J;

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

34

 

(e)          
Additional
Reports.  The Company shall cause its legal counsel to deliver to
Administrative Agent, within one hundred twenty (120) days after the end of
each calendar year, a letter summarizing the status of all material pending
litigation involving or affecting the Company or its Consolidated Subsidiaries
or any of their assets.  The Company shall have satisfied this requirement if
it furnishes to Administrative Agent a letter comparable to and consistent with
that furnished by the Company's counsel to the Company's outside auditors in
response to an audit inquiry covering the same calendar year.

(f)           
Permitted
Acquisitions.  Not less than five (5) Business Days prior to the
closing of any Acquisition, the Company shall deliver to Administrative Agent a
certificate in the form of Exhibit Q dated on or immediately prior to the date
of the Acquisition, executed by the President or a Vice President of the
Company (i) confirming that all representations and warranties set forth in the
Loan Documents continue to be true and correct in all material respects
immediately prior to and after giving effect to the Acquisition and the
transactions contemplated thereby, and, for any Acquisition in which the total
consideration is equal to or greater than $5,000,000, certifying pro forma
financial statements of the Company and its Consolidated Subsidiaries
demonstrating compliance with the covenants set forth in Sections 8.14,
8.15, 8.16, and 8.18 (as if the business, assets or Person acquired
had been acquired since the first (1st) day of the period for which such pro
forma financial statements are delivered and had been managed and conducted in
accordance with the Company's standard business practices) for the prior four (4)
fiscal quarters of the Company and its Consolidated Subsidiaries.

(g)          
Other
Information.  Such other information concerning business, properties or
financial condition of the Company as Administrative Agent shall reasonably
request.  

8.02.      
Payment
of Taxes and Other Indebtedness.  The Company shall, and shall cause each
of its Subsidiaries to, pay and discharge (i) all taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits,
or upon any property belonging to it, before delinquent, (ii) all lawful claims
(including claims for labor, materials and supplies), which, if unpaid, might
become a Lien upon any of its property and (iii) all of its other Indebtedness,
except as prohibited hereunder; provided, however, that the Company and each of
its Subsidiaries shall not be required to pay any such tax, assessment charge
or levy if and so long as the amount, applicability or validity thereof is
currently contested in good faith by appropriate proceedings and appropriate
accruals and reserves therefor have been established in accordance with GAAP.

8.03.      
Maintenance
of Existence and Rights; Conduct of Business.  The Company shall, and shall cause each
other member of the Obligated Group to, preserve and maintain its corporate
existence and all of its rights, privileges and franchises necessary or
desirable in the normal conduct of its business, and conduct its business in an
orderly and efficient manner consistent with good business practices and in
accordance with all valid regulations and orders of any Governmental Authority.

8.04.      
Notice
of Default.  The Company shall
furnish to Administrative Agent, immediately upon becoming aware of the
existence of any condition or event that constitutes an Event of Default or
Potential Default, a written notice specifying the nature and period of
existence thereof and the action which the Company is taking or proposes to
take with respect thereto.

8.05.      
Other
Notices.  The Company shall
promptly notify Administrative Agent (a) to the extent that it would have a
Material Adverse Effect on a member of the Obligated Group or to the
Consolidated Subsidiaries in the aggregate, of (i) any change in financial
condition or business, and (ii) any default under any material agreement,
contract or other instrument to which the Person is a party or by which any of
its properties are bound, or any acceleration of the maturity of any
Indebtedness owing by the Company or any Subsidiary, (b) of any claim against
or affecting the Company or any Subsidiary, or any of their properties, or any
actual or potential contingent liabilities, involving an amount or amounts, in
the aggregate, exceeding $2,500,000, and (c) of the commencement of, and any
material determination in, any litigation with any third party or any
proceeding before any Governmental Authority affecting the Company or any
Subsidiary involving an amount or amounts, in the aggregate, exceeding
$2,500,000, other than any claim or litigation referred to in (b) and (c) which
is fully insured (less customary deductibles and self insured retention limits)
by one or more binding and enforceable insurance policies in favor of the
Company or its Subsidiaries, which policies are issued in accordance with
provisions of this Loan Agreement.

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

35

 

8.06.      
Compliance
with Loan Documents.  The Company shall promptly comply with
any and all covenants and provisions of this Loan Agreement, the Notes and all
other of the Loan Documents.

8.07.      
Compliance
with Material Agreements.  The Company shall, and shall cause each
of its Subsidiaries to, comply in all material respects with all material
agreements, indentures, mortgages or documents binding on it or affecting its
properties or business.

8.08.      
Operations
and Properties.  The Company shall, and shall cause each
of its operating Subsidiaries to, act prudently and in accordance with
customary industry standards in managing or operating its assets, properties,
business and investments; the Company shall, and shall cause each of its
Subsidiaries to, keep in good working order and condition, ordinary wear and
tear excepted, all of its assets and properties which are necessary to the
conduct of its business.

8.09.      
Books
and Records; Access.  The Company shall give any representative
of Administrative Agent or any other Lender (unless the Company's prior consent
is obtained, any non-Lender employee representative shall be accompanied by an
Administrative Agent or Lender employee) access during all business hours to,
and permit such representative to examine, copy or make excerpts from, any and
all books, records and documents in the possession of the Company and relating
to its affairs, and to inspect any of the properties of the Company. Subject to
applicable laws, including laws regulating the supervision of Lenders, in
general, Lenders shall not communicate to others any trade secrets or
proprietary information of the Company, except as may occur in connection with
any litigation or other legal proceedings or transfers of rights hereunder. The
Company shall, and shall cause each of its Subsidiaries to, maintain complete
and accurate books and records of its transactions in accordance with good
accounting practices.

8.10.      
Compliance
with Law.  The Company shall
comply with all applicable laws, rules, regulations, and all orders of any
Governmental Authority applicable to it or any of its property, business
operations or transactions, a breach of which could have a Material Adverse
Effect on the Company's or any of its Subsidiaries' or any Obligated Group
member's financial condition, business or credit.

8.11.      
Insurance.  The Company shall, and shall cause each
of its Subsidiaries to, maintain worker's compensation insurance, liability
insurance, business interruption insurance, and insurance on its properties,
assets and business, now owned or hereafter acquired, against such casualties,
risks and contingencies, and in such types and amounts, as are consistent with
customary practices and standards of companies engaged in similar businesses
and as approved by Administrative Agent, which approval shall not be
unreasonably denied. If any of the foregoing coverages are not customary in
Europe, then the Company shall cause to be obtained and maintained for any
Consolidated Subsidiary based in Europe the customary equivalent, so long as it
provides to Lender reasonable evidence that those coverages are appropriate.

8.12.      
Authorizations
and Approvals.  The Company shall, and shall cause each
of its Subsidiaries to, promptly obtain, from time to time at its own expense,
all such governmental licenses, authorizations, consents, permits and approvals
required to enable it to comply with its obligations hereunder and under the
other Loan Documents.

8.13.      
Further
Assurances.  The Company
shall, and shall cause each of its Subsidiaries to, make, execute or endorse,
and acknowledge and deliver or file or cause the same to be done, all such
vouchers, invoices, notices, certifications and additional agreements,
undertakings, or other assurances, and take and all such other action, as
Lender may, from time to time, deem reasonably necessary or proper in
connection with the Loan Agreement or any of the other Loan Documents and the
obligations of the Company hereunder or thereunder.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

36

 

8.14.      
Minimum
Fixed Charge Coverage Ratio.  The Company shall at all times maintain a
minimum Fixed Charge Coverage Ratio of not less than 1.25 to 1.00. 

8.15.      
Minimum
Consolidated Tangible Net Worth.  The Company shall at all times maintain a
minimum Consolidated Tangible Net Worth of (a) $109,500,000; plus
(b) fifty percent (50%) of Net Income in each subsequent fiscal year
beginning with the fiscal year ending December 31, 2005, such addition to be
calculated effective as of June 30 of each fiscal year based on the audited
financial statements for the immediately preceding fiscal year beginning June
30, 2006 (provided however that if Net Income is
less than zero for any fiscal year, for purposes of this Section 8.15
such sum will be deemed to have been zero for such fiscal year); plus
(c) 100% of the net proceeds of any Equity Issuance after the date hereof. 

8.16.      
Leverage
Ratio. The Company, as of any date during the
term hereof, shall maintain a ratio of Consolidated Funded Debt to Operating
Cash Flow not exceeding 3.25 to 1.00.

8.17.      
ERISA Compliance.  The Company shall (a) at all
times, make prompt payment of all contributions required under all Plans and
required to meet the minimum funding standard set forth in ERISA with respect
to its Plans; (b) within thirty (30) days after the filing thereof,
furnish to Administrative Agent on Administrative Agent's written request, with
sufficient copies for Administrative Agent, of each annual report/return (Form
5500 Series), as well as all schedules and attachments required to be filed
with the Department of Labor and/or the IRS pursuant to ERISA, and the
regulations promulgated thereunder, in connection with each of its Plans for
each Plan Year; (c) notify Administrative Agent immediately of any fact,
including, but not limited to, any Reportable Event arising in connection with
any of its Plans, that might constitute grounds for termination thereof by the
PBGC or for the appointment by the appropriate United States District Court of
a trustee to administer the Plan, together with a statement, if requested by
Administrative Agent, of the reason therefor and the action, if any, proposed
to be taken with respect thereto; and (d) furnish to Administrative Agent,
upon its request, such additional information concerning any of its Plans as
may be reasonably requested.

8.18.      
Minimum
Asset Coverage Ratio.  The Company, as of any date during the
term hereof, shall maintain a minimum Asset Coverage Ratio of 3.00 to 1.00.

ARTICLE 9

NEGATIVE COVENANTS OF OBLIGATED GROUP

So long as
Lenders have any commitment to make Advances hereunder, and until payment in
full of the Notes and the performance of the Obligation, each member of the
Obligated Group agrees that (unless Required Lenders shall otherwise consent in
writing):

9.01.      
Limitation
on Indebtedness.  Except as noted in the second paragraph
of this Section 9.01, no member of the Obligated Group will incur,
create, contract, waive, assume, have outstanding, guarantee or otherwise be or
become liable, directly or indirectly, or both, in respect of, any
Indebtedness, except (i) Indebtedness arising out of this Loan
Agreement, (including the Guaranties of the Guarantors as listed on Exhibit
N) (ii) Indebtedness secured by the Permitted Liens, (iii) current
liabilities for taxes and assessments incurred in the ordinary course of
business, (iv) current amounts payable or accrued of other claims (other than
for borrowed funds or purchase money obligations) incurred in the ordinary
course of business, provided that all such liabilities, accounts and
claims shall be promptly paid and discharged when due or in conformity with
trade terms, (v) Indebtedness of the Obligated Group as reflected in the
audited consolidated financial statement of the Company and its Consolidated
Subsidiaries as of June 30, 2004, (iv) the Indebtedness disclosed to Lenders as
indicated on the attached Exhibit M, and (v) Indebtedness in respect of
any Financial Hedge.

Notwithstanding
the foregoing and, specifically, the parenthetical exclusion contained in
subparagraph (iv) above, the Obligated Group, as a whole, or any member or
combination of members of the Obligated Group, may incur during the term of
this Commitment, new Indebtedness For Borrowed Money (including, without
limitation, purchase money Indebtedness) (the "New Indebtedness")
not exceeding $5,000,000, in the aggregate.  The foregoing $5,000,000 aggregate
limitation on New Indebtedness during the term of this Loan Agreement shall
apply to the entire Obligated Group and shall be calculated based on the
aggregate dollar value of New Indebtedness incurred by all members of the
Obligated Group, but shall exclude New Indebtedness that is assumed or
guaranteed by an Obligated Group member, so long as the aggregate of such
assumed or guaranteed New Indebtedness for all Obligated Group members does not
exceed $5,000,000 outstanding at any point in time. The foregoing restrictions
on the incurrence of New Indebtedness shall not prohibit any Subsidiary that is
not a member of the Obligated Group from incurring New Indebtedness, so long as
no member of the Obligated Group is a co-maker, surety or guarantor of that New
Indebtedness (except for the $5,000,000 allowance) permitted above.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

37

 

9.02.      
Negative
Pledge.  No member of the
Obligated Group will create or suffer to exist any mortgage, pledge, security
interest, conditional sale or other title retention agreement, charge,
encumbrance or other Lien (whether such interest is based on common law,
statute, other law or contract) upon any of its property or assets including,
but not limited to, capital stock of the domestic subsidiaries of Company, now
owned or hereafter acquired, except for Permitted Liens, nor will any member of
the Obligated Group enter into any other negative pledge agreements with any
other Persons.

9.03.      
Limitation
on Investments.  Neither the Obligated Group as a whole
nor any member or combination of members of the Obligated Group, shall make or
have any Investments except for, (i) investments disclosed in the
Company's June 30, 2004, financial statements, (ii) investments in marketable
securities in an aggregate amount not to exceed $8,000,000, with no single
investment security representing more than forty percent (40%) of the total,
(iii) Temporary Cash Investments, (iv) such other Cash Equivalent
Investments approved by Administrative Agent from time to time, (v) loans to
officers, directors and employees pursuant to a stock option or retirement plan
not exceeding $1,000,000, in the aggregate at any time outstanding, (vi)
Investments consisting of trade advances in the ordinary course of business to
any Subsidiary of a member of the Obligated Group excluding any trade advance
to any Foreign Subsidiary that is more than one hundred eighty (180) days from
the date of the original invoice evidencing such trade advance, (vii)
Investments by one member of the Obligated Group in another member of the
Obligated Group, and (viii) Investments in any Person or Persons that is not a
member of the Obligated Group in an amount not to exceed $5,000,000, in the
aggregate (such  $5,000,000 aggregate limitation shall apply to the entire
Obligated Group and shall be calculated based on the total dollar value of the
Investment of all members of the Obligated Group in any Person or Persons that
is not a member of the Obligated Group).

9.04.      
Repurchase
of Shares.  The Company shall make no expenditures for
repurchases of its capital stock in an amount in excess of $20,000,000, in the
aggregate, during the term hereof after the execution of this Agreement.  The
foregoing $20,000,000 aggregate limitation on repurchases of the Company's
capital stock shall be calculated based on the aggregate dollar value of
capital stock repurchases made by the Company.

9.05.      
Limitations
on Sale of Properties.  Except for the transactions, the terms of
which have been previously approved by Lenders, disclosed on Schedule K,
no member of the Obligated Group shall (a) sell, assign, convey, exchange,
lease or otherwise dispose of any of its properties, rights, assets or
business, whether now owned or hereafter acquired, except in the ordinary
course of its business and for a fair consideration; or (b) sell, assign or
discount any accounts receivable, other than discount or forgive a portion of
one or more accounts receivable in the ordinary course of business to settle a
disputed or other account considered by the respective member of the Obligated
Group to be uncollectible.

9.06.      
Fiscal
Year and Accounting Method.  No member of the Obligated Group will,
nor will any such member permit any of its Subsidiaries to, change its fiscal
year or method of accounting other than as may be permitted by GAAP.

9.07.      
Liquidation,
Mergers, Consolidations, and Dispositions of Substantial Assets.  No member of the Obligated Group shall
dissolve or liquidate, or become a party to any merger or consolidation, or
sell, transfer, lease, or otherwise dispose of all or any substantial part of
its property or assets or business; provided, however, that the
foregoing shall not operate to prevent:

(i)            Mergers
or consolidations of any member of the Obligated Group into the Company or of
any member of the Obligated Group into another member of the Obligated Group or
a sale, transfer or lease of assets by any member of the Obligated Group to any
other member of the Obligated Group, so long as, after giving effect to the
merger or consolidation, the Company shall be in full compliance with the terms
of this Loan Agreement; or

(ii)           A
merger of any Person into any member of the Obligated Group; provided,
however, that such member of the Obligated Group shall be the surviving or
continuing Person and, after giving effect to the merger or consolidation, the
Company shall be in full compliance with the terms of this Loan Agreement.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

38

9.08.      
Lines
of Business.  No member of the
Obligated Group shall, directly or indirectly, engage in any business
significantly and materially different from those in which it is presently
engaged or substantially alter its method of doing business.

9.09.      
Guaranties.  No member of the Obligated Group shall
become or be liable in respect of any Guaranty, except (i) Guaranties as
reflected in the audited consolidated financial statement of the Company and
its Consolidated Subsidiaries as of December 31, 2003, (ii) the Guaranties
disclosed to Lenders as indicated on the attached Exhibit M, including
renewals, extensions, and increases thereof, provided that increases of all
Guaranties permitted hereunder shall not exceed $1,000,000 in the aggregate
during the term of this Agreement, and (iii) Guaranties permitted under Section
9.01.

9.10.      
Limitation
of Liens.  The Obligated Group
will not 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 in favor of the Lenders arising under the Loan
Documents; and

(b)           Permitted Liens.

9.11.      
Limitation
on Acquisitions.  The Company will not, and will not permit any
Consolidated Subsidiary to,  purchase or otherwise acquire all or substantially
all of the assets or any stock of any class, or any partnership or joint
venture interest in, any other Person other than a Permitted Acquisition.  For
the fiscal year 2004, the acquisition of the assets of Rousseau Holding, S.A.
shall not be included in the acquisition amounts used to determine total
acquisition for the fiscal year.

9.12.      
Limitation
on Capital Expenditures.  Except for Capital Expenditures for
assets acquired pursuant to a Permitted Acquisition, the Obligated Group will
not  incur, make, create, contract,  assume, have outstanding, guarantee or
otherwise be or become liable, directly or indirectly, for, in the aggregate,
any Capital Expenditure exceeding $10,000,000 in any fiscal year.

ARTICLE 10

EVENTS OF DEFAULT

10.01.    
Events
of Default.  An "Event
of Default" shall exist if any one or more of the following events
(herein collectively called "Events of Default") occurs and is
continuing:

(a)           the
Company shall fail to pay when due any principal of any Note;

(b)           the
Company shall fail to pay when due any interest on any Note or shall
fail to pay when due any fee, expense or other payment required hereunder, and
that failure continues uncured for five (5) days after the due date;

(c)           any
representation or warranty made under this Loan Agreement, or any of the other
Loan Documents, or in any certificate or statement furnished or made to
Administrative Agent and Lenders pursuant hereto or in connection herewith or
with the Revolving Credit Loan  hereunder, shall prove to be untrue or
inaccurate in any material respect as of the date on which such representation
or warranty is made, if a Material Adverse Effect would result;

(d)           default
shall occur in the performance of any of the covenants or agreements of the
Company or any Subsidiary contained herein, or in any of the other Loan
Documents; provided, however, and notwithstanding the foregoing,
if the Company defaults in the observance of the covenants set forth in Sections
8.14, 8.15, 8.16, or 8.18, the Company shall have (30)
days after the breach thereof within which to cure such default, but there is
no duty upon Administrative Agent to notify the Company of any such default;

(e)           default
shall occur in the payment of any Indebtedness of the Company or any Subsidiary
or default shall occur in respect of any note, loan agreement or credit
agreement relating to any such Indebtedness and such default shall continue for
more than the period of grace, if any, specified therein; or any such
Indebtedness shall become due before its stated maturity by acceleration of the
maturity thereof or shall become due by its terms and shall not be promptly
paid or extended, if a Material Adverse Effect would result;

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

39

(f)            any
of the Loan Documents shall cease to be legal, valid, binding agreements
enforceable against any party executing the same in accordance with the
respective terms thereof or shall in any way be terminated or become or be
declared ineffective or inoperative or shall in any way whatsoever cease to
give or provide the respective liens, security interest, rights, titles,
interest, remedies, powers or privileges intended to be created thereby;

(g)           to
the extent that Administrative Agent believes in good faith that a Material
Adverse Effect would result, the Company or any Subsidiary shall (i) apply for
or consent to the appointment of a receiver, trustee, custodian, intervenor or
liquidator of itself or of all or a substantial part of its assets, (ii) file a
voluntary petition in bankruptcy or admit in writing that it is unable to pay
its debts as they become due, (iii) make a general assignment for the benefit
of creditors, (iv) file a petition or answer seeking reorganization of an
arrangement with creditors or to take advantage of any bankruptcy or insolvency
laws, (v) file an answer admitting the material allegations of, or consent to,
or default in answering, a petition filed against it in any bankruptcy,
reorganization or insolvency proceeding, or (vi) take corporate action for the
purpose of electing any of the foregoing;

(h)           to
the extent that Administrative Agent believes in good faith that a Material
Adverse Effect would result, an involuntary petition or complaint shall be
filed against the Company or any Subsidiary seeking bankruptcy or
reorganization of the Company or such Subsidiary, or the appointment of a
receiver, custodian, trustee, intervenor or liquidator of the Company or such
Subsidiary, or all or substantially all of its assets, or an order, order for
relief, judgment or decree shall be entered by any court of competent
jurisdiction or other competent authority approving a petition or complaint
seeking reorganization of the Company or any Subsidiary or appointment of a
receiver, custodian, trustee, intervenor or liquidator of the Company or any
Subsidiary, or of all or substantially all of its assets;

(i)            any
final judgment(s) for the payment of money in excess of the sum of $250,000 in
the aggregate shall be rendered against the Company or any Subsidiary and such
judgment or judgments shall not be satisfied or discharged at least ten (10)
days prior to the date on which any of its assets could be lawfully sold to satisfy
such judgment or shall not be fully insured (less customary deductibles) under
one or more binding and enforceable policies of insurance issued in favor of
the Company or any Subsidiary which are issued in accordance with the terms of
this Loan Agreement; or

(j)            there
shall occur any change in the condition (financial or otherwise) of the Company
or any Subsidiary which, in Required Lenders' reasonable opinion, has a
Material Adverse Effect.

10.02.    
Remedies
Upon Event of Default.  If an Event of Default occurs and is
continuing, then Administrative Agent shall, at the request of the Required
Lenders exercise any one or more of the following rights and remedies, and any
other remedies provided in any of the Loan Documents, as Administrative Agent,
at the request of the Required Lenders, in its sole discretion, deems necessary
or appropriate: (i) terminate the Commitments to lend hereunder, (ii) declare
the principal of, and all interest then accrued on, the Notes and any other
liabilities hereunder to be forthwith due and payable, whereupon the same shall
forthwith become due and payable without presentment, demand, protest, notice
of default, notice of acceleration or of intention to accelerate or other notice
of any kind, all of which the Company hereby expressly waives, anything
contained herein or in the Notes to the contrary notwithstanding, (iii) reduce
any claim to judgment, and/or (iv) without notice of default or demand, pursue
and enforce any of Lenders' rights and remedies under the Loan Documents, or
otherwise provided under or pursuant to any applicable law or agreement; provided,
however, that if any Event of Default specified in Section 10.01(g)
or (h) occurs, the principal of, and all interest on, the Notes and
other liabilities hereunder shall thereupon become due and payable concurrently
therewith, and Lenders' obligations to lend shall immediately terminate
hereunder, without any further action by Lenders and without presentment,
demand, protest, notice of default, notice of acceleration or of intention to
accelerate or other notice of any kind, all of which the Company hereby
expressly waives.

          
10.03.         Performance
by Lender.  If the Company
fails to perform any covenant, duty or agreement contained herein or in any of
the Loan Documents, Administrative Agent may, at its option, perform or attempt
to perform such covenant, duty or agreement on behalf of the Company. In such
event, the Company shall, at Administrative Agent's request, promptly pay any
amount expended by Administrative Agent or any Lender in such performance or
attempted performance to Lender at its Lending Office, together with interest
thereon at the highest lawful rate from the date of the expenditure until paid.
Notwithstanding the foregoing, it is expressly understood that Administrative
Agent or any Lender assumes no liability or responsibility for the performance
of any duties of the Company hereunder or under any of the Loan Documents or
other control over the management and affairs of the Company.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

40

 

ARTICLE 11

AGENT

11.01.    
Appointment
and Authority.  

Each of the
Lenders hereby irrevocably appoints Bank of America to act on its behalf as
Administrative Agent hereunder and under the other Loan Documents and
authorizes Administrative Agent to take such actions on its behalf and to
exercise such powers as are delegated to Administrative Agent by the terms hereof
or thereof, together with such actions and powers as are reasonably incidental
thereto.  The provisions of this Article 11  are solely for the benefit
of Administrative Agent and the Lenders, and neither the Company nor any other
Loan Party shall  have rights as a third party beneficiary of any of such
provisions.

11.02.    
Rights
as a Lender.  The Person
serving as Administrative Agent hereunder shall have the same rights and powers
in its capacity as a Lender as any other Lender and may exercise the same as
though it were not Administrative Agent and the term "Lender" or
"Lenders" shall, unless otherwise expressly indicated or unless
the context otherwise requires, include the Person serving as Administrative
Agent hereunder in its individual capacity.  Such Person and its Affiliates may
accept deposits from, lend money to, act as the financial advisor or in any
other advisory capacity for and generally engage in any kind of business with
the Company or any Subsidiary or other Affiliate thereof as if such Person were
not Administrative Agent hereunder and without any duty to account therefor to
the Lenders.

11.03.    
Exculpatory
Provisions.  Administrative Agent shall not have any duties
or obligations except those expressly set forth herein and in the other Loan
Documents.  Without limiting the generality of the foregoing, Administrative
Agent:

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

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

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

Administrative
Agent shall not be liable for any action taken or not taken by it (i) with the
consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary, or as Administrative Agent
shall believe in good faith shall be necessary, under the circumstances as
provided in Sections 12.01 and 10.02) or (ii) in the
absence of its own gross negligence or willful misconduct.  Administrative
Agent shall be deemed not to have knowledge of any Event of Default unless and
until notice describing such Event of Default is given to Administrative Agent
by the Company or a Lender.

Administrative
Agent shall not be responsible for or have any duty to ascertain or inquire
into (i) any statement, warranty or representation made in or in connection
with this Loan Agreement or any other Loan Document, (ii) the contents of any
certificate, report or other document delivered hereunder or thereunder or in
connection herewith or therewith, (iii) the performance or observance of any of
the covenants, agreements or other terms or conditions set forth herein or
therein or the occurrence of any Event of Default, (iv) the validity,
enforceability, effectiveness or genuineness of this Loan Agreement, any other
Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Article 7 or elsewhere
herein, other than to confirm receipt of items expressly required to be
delivered to Administrative Agent.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

41

 

 

11.04.    
Reliance
by Administrative Agent.  

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

11.05.    
Delegation
of Duties.  Administrative
Agent may perform any and all of its duties and exercise its rights and powers
hereunder or under any other Loan Document by or through any one or more sub
agents appointed by Administrative Agent.  Administrative Agent and any such
sub agent may perform any and all of its duties and exercise its rights and
powers by or through their respective Related Parties.  The exculpatory
provisions of this Article shall apply to any such sub agent and to the
Related Parties of Administrative Agent and any such sub agent, and shall apply
to their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent.

11.06.    
Resignation
of Administrative Agent.  Administrative Agent may at any time give
notice of its resignation to the Lenders and the Company.  Upon receipt of any
such notice of resignation, the Required Lenders shall have the right, in
consultation with the Company, to appoint a successor, which shall be a bank
with an office in the United States, or an Affiliate of any such bank with an
office in the United States.  If no such successor shall have been so appointed
by the Required Lenders and shall have accepted such appointment within thirty
(30) days after the retiring Administrative Agent gives notice of its
resignation, then the retiring Administrative Agent may on behalf of the
Lenders, appoint a successor Administrative Agent meeting the qualifications
set forth above; provided that if Administrative Agent shall notify the
Company and the Lenders that no qualifying Person has accepted such
appointment, then such resignation shall nonetheless become effective in
accordance with such notice and (1) the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder and under the other Loan
Documents and (2) all payments, communications and determinations provided to
be made by, to or through Administrative Agent shall instead be made by or to
each Lender directly, until such time as the Required Lenders appoint a
successor Administrative Agent as provided for above in this Section. 
Upon the acceptance of a successor's appointment as Administrative Agent
hereunder, such successor shall succeed to and become vested with all of the
rights, powers, privileges and duties of the retiring (or retired)
Administrative Agent, and the retiring Administrative Agent shall be discharged
from all of its duties and obligations hereunder or under the other Loan
Documents (if not already discharged therefrom as provided above in this Section). 
The fees payable by the Company to a successor Administrative Agent shall be
the same as those payable to its predecessor unless otherwise agreed between
the Company and such successor.  After the retiring Administrative Agent's
resignation hereunder and under the other Loan Documents, the provisions of
this Article and Section 12.16 shall continue in effect for the
benefit of such retiring Administrative Agent, its sub agents and their
respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while the retiring Administrative Agent was acting as
Administrative Agent.

Any resignation
by Bank of America as Administrative Agent pursuant to this Section
shall also constitute its resignation as issuer of Letters of Credit and Swing
Line Lender.  Upon the acceptance of a successor's appointment as
Administrative Agent hereunder, (a) such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring
issuer of Letters of Credit and Swing Line Lender, (b) the retiring issuer of
Letters of Credit and Swing Line Lender shall be discharged from all of their
respective duties and obligations hereunder or under the other Loan Documents,
and (c) the successor issuer of Letters of Credit shall issue letters of credit
in substitution for the Letters of Credit, if any, outstanding at the time of
such succession or make other arrangement satisfactory to the retiring issuer
of Letters of Credit to effectively assume the obligations of the retiring
Administrative Agent with respect to such Letters of Credit.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

42

 

11.07.    
Non-Reliance
on Administrative Agent and Other Lenders.  Each Lender acknowledges that it has,
independently and without reliance upon Administrative Agent or any other
Lender or any of their Related Parties and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Loan Agreement.  Each Lender also acknowledges that
it will, independently and without reliance upon Administrative Agent or any
other Lender or any of their Related Parties and based on such documents and
information as it shall from time to time deem appropriate, continue to make
its own decisions in taking or not taking action under or based upon this Loan
Agreement, any other Loan Document or any related agreement or any document
furnished hereunder or thereunder.

11.08.    
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, 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 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 Obligation 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 Administrative Agent (including any
claim for the reasonable compensation, expenses, disbursements and advances of
the Lenders and Administrative Agent and their respective agents and counsel
and all other amounts due the Lenders and Administrative Agent under Sections
2.03 and 12.16) allowed in such judicial proceeding; and

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

and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Lender to make such payments to Administrative Agent and, in the event that
Administrative Agent shall consent to the making of such payments directly to
the Lenders, to pay to Administrative Agent any amount due for the reasonable compensation,
expenses, disbursements and advances of Administrative Agent and its agents and
counsel, and any other amounts due Administrative Agent under Sections 2.02
and 12.16.

Nothing
contained herein shall be deemed to authorize 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 Obligation
or the rights of any Lender or to authorize Administrative Agent to vote in
respect of the claim of any Lender in any such proceeding.

11.09.    
Guaranty
Matters.  The Lenders
irrevocably authorize Administrative Agent, at its option and in its discretion
to release any Guarantor from its obligations under the Guaranty if such Person
ceases to be a Subsidiary as a result of a transaction permitted hereunder.

Upon request by
Administrative Agent at any time, the Required Lenders will confirm in writing
Administrative Agent's authority to release any Guarantor from its obligations
under the Guaranty pursuant to this Section 11.09. 

11.10.    
Agents.  None of the Lenders identified in this
Agreement as "Documentation Agent" shall have any rights, powers,
obligations, liabilities, responsibilities, or duties under this Agreement
other than those applicable to all Lenders as such.  Without limiting the
foregoing, none of the Lenders so identified as a "Documentation Agent"
shall have or be deemed to have any fiduciary relationship with any Lender.

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

43

 

ARTICLE 12

MISCELLANEOUS

12.01.   Modification.  The provisions of this Loan Agreement
and of each of the other Loan Documents may from time to time be amended,
modified or waived, if such amendment, modification or waiver is in writing and
consented to by the Company and Required Lenders; provided, however,

(a)           that
no such amendment, modification or waiver which would  modify this Section,
change the definition of "Required Lenders," reduce any fees described in
Article 2,
release any party to a Loan Document or any material collateral security
(except as otherwise specifically provided in any Loan Document), or extend any
Termination Date or the maturity of any of the Notes, shall be made without the
consent of each Lender; or

(b)           that
no such amendment, modification or waiver which would extend the due date for,
or reduce the amount of, any scheduled repayment or prepayment of principal of
or interest on any Loan (or reduce the principal amount of or rate of interest
on any Loan) shall be made without the consent of the holder of the Note
evidencing such Loan.

(c)           that
no such amendment, modification or waiver which would affect adversely the
interests, rights or obligations of Administrative Agent, in its capacity as
Administrative Agent, shall be made without consent of Administrative Agent. 

(d)           that
any amendment, modification or waiver that purports (subject to Section 2.01(b)
or otherwise) to increase any Commitment or Pro Rata Share of any Lender or add
a Lender as a new Lender pursuant to Section 2.01(b) must be by an
instrument in writing executed by such existing Lender or such new Lender and
the consent of the Required Lenders in that instance is not necessary.

No failure or delay on the part
of Administrative Agent or any Lender in exercising any power or right under
this Loan Agreement or any other Loan Document shall operate as a waiver
thereof, nor shall any single or partial exercise of any such power or right
preclude any other or further exercise thereof or the exercise of any other
power or right.  No notice to or demand on Company or any Person in any case
shall entitle it to any notice or demand in similar or other circumstances.  No
waiver or approval by  Lender under this Loan Agreement or any other Loan
Document shall, except as may be otherwise stated in such waiver or approval,
except as may be otherwise stated in such waiver or approval, be applicable to
subsequent transaction.  No waiver or approval hereunder shall require any
similar or dissimilar waiver or approval thereafter to be granted hereunder.

12.02.    
Accounting
Terms and Reports.  All accounting terms not specifically
defined in this Loan Agreement shall be construed in accordance with GAAP
consistently applied on the basis used by the Company in prior years. All
financial reports furnished by the Company to Administrative Agent pursuant to
this Loan Agreement shall be prepared in such form and such detail as shall be
satisfactory to Administrative Agent shall be prepared on the same basis as
those prepared by the Company in prior years and shall be the same financial
reports as those furnished to the Company's officers and directors.

12.03.    
Waiver.  No failure to exercise, and no delay in
exercising, on the part of Administrative Agent or any Lender, any right
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise thereof preclude any other further exercise thereof or the exercise of
any other right. The rights of the Lenders  hereunder and under the Loan
Documents shall be in addition to all other rights provided by law. No
modification or waiver of any provision of this Loan Agreement, the Notes or any
Loan Documents, nor consent to departure therefrom, shall be effective unless
in writing and no such consent or waiver shall extend beyond the particular
case and purpose involved. No notice or demand given in any case shall
constitute a waiver of the right to take other action in the same, similar or
other instances without such notice or demand.

12.04.    
Payment
of Expenses.  The Company
agrees to pay all costs and expenses of Administrative Agent (including, without
limitation, the reasonable attorneys' fees of Lenders' legal counsel and all
filing fees) incurred by Administrative Agent in connection with the
preservation and enforcement of and Lenders' rights under this Loan Agreement,
the Notes, and/or the other Loan Documents, and all reasonable costs and
expenses of Lenders (including, without limitation, the reasonable fees and
expenses of Lenders' respective legal counsel) in connection with the
negotiation, preparation, execution and delivery of this Loan Agreement, the
Notes, and the other Loan Documents and any and all amendments, modifications
and supplements thereof or thereto.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

44

 

12.05.      
Notices.  

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

(i)            if
to the Company, Administrative Agent, or any Lender, to the address, telecopier
number, electronic mail address or telephone number specified for such Person
as follows; 

(A)          the Company:

P.O. Drawer 649

Seguin, Texas 78156

Attention: Mr. Robert H. George

Fax No.  (210) 372-9683

Email:  bgeorge@alamo-group.com

(B)          
Administrative
Agent:

231 South
LaSalle Street

Chicago,
Illinois 60697

Attention: 
Suzanne M. Paul

Fax No. (877)
206-8435

Email: 
Suzanne.m.paul@bankofamerica.com

(C)          
Bank
of America, N.A.

300 Convent, 5th
Floor

Post Office Box
300

San Antonio,
Texas 78291

Attention: Mr.
Stevens E. Warrick

Fax No.  (210)
270-5569

Email: 
steven.warrick@bankofamerica.com

(D)          Chase Bank

1020 N.E. Loop
410

San Antonio,
Texas 78209

Attention:  Mr.
Mark. V. Harris

Fax No.  (210)
829-6109

Email:
mark.harris@chase.com

(E)           Guaranty Bank

301 Congress Avenue

Suite 300

Austin, Texas 78701

Attention:  Joseph N. Petet

Fax No.:  512-320-1041

Email: joe.petet@guarantygroup.com

               

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

45

(F)          
Administrative
Agent as Letter of Credit Issuer

Bank
of America

Mail Code: CA9-703-19-23 

333 S. Beaudry Ave.

Los Angeles CA 90017-1466 

Attention:  Tai Anh Lu

Fax No. 213.345.6684

Email:  tai_ahn.lu@bankofamerica.com

Notices sent by
hand or overnight courier service, or mailed by certified or registered mail,
shall be deemed to have been given when received; notices sent by telecopier
shall be deemed to have been given when sent (except that, if not given during
normal business hours for the recipient, shall be deemed to have been given at
the opening of business on the next Business Day for the recipient).  Notices
delivered through electronic communications to the extent provided in subsection
(b) below, shall be effective as provided in such subsection (b).

(b)          
Electronic
Communications.  Notices and other communications to the Lenders
hereunder may be delivered or furnished by electronic communication (including
e mail and internet or intranet websites) pursuant to procedures approved by
Administrative Agent,  provided that the foregoing shall not apply to
notices to any Lender pursuant to Article 2 if such Lender has notified
Administrative Agent that it is incapable of receiving notices under such
Article by electronic communication.  Administrative Agent or the Company may,
in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it, provided
that approval of such procedures may be limited to particular notices or
communications.

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

(c)          
Change
of Address, Etc.  Each of the Company, Administrative Agent, and the
Swing Line Lender may change its address, telecopier or telephone number for
notices and other communications hereunder by notice to the other parties
hereto.  Each other Lender may change its address, telecopier or telephone
number for notices and other communications hereunder by notice to the Company,
Administrative Agent, and the Swing Line Lender.

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

12.06.    
Governing
Law.  This Loan Agreement has
been prepared, is being executed and delivered, and is intended to be performed
in the State of Texas, and the substantive laws of such state and the
applicable federal laws of the United States of America shall govern the
validity, construction, enforcement and interpretation of this Loan Agreement
and all of the other Loan Documents.

12.07.    
Choice
of Forum; Consent to Service of Process.  Any suit, action or proceeding against the
Company with respect to this Loan Agreement, the Notes or any judgment entered
by any court in respect thereof, may be brought in the courts of the State of
Texas, County of Bexar or in the United States courts located in the Western
District of the State of Texas, as Administrative Agent in its sole discretion
may elect and the Company hereby submits to the non-exclusive jurisdiction of
such courts for the purpose of any such suit, action or proceeding.  The
Company hereby irrevocably consents to the service of process any suit, action
or proceeding in said court by the mailing thereof by Administrative Agent by
registered or certified mail, postage prepaid, to its address set forth in Section
12.05. The Company hereby irrevocably waives any objections which it may
now or hereafter have to placing venue of any suit, action or proceeding
arising out for relating to this Loan Agreement or any Note brought in the
courts located in the State of Texas, County of Bexar and hereby further
irrevocably waives any claim that any such suit, action or proceeding brought
in any such court has been brought in any inconvenient forum.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

46

 

12.08.    
Invalid
Provisions.  If any provision
of any Loan Document is held to be illegal, invalid or unenforceable under
present or future laws during the term of this Loan Agreement, such provision
shall be fully severable; such Loan Document shall be construed and enforced as
if such illegal, invalid or unenforceable provision had never comprised a part
of such Loan Document; and the remaining provisions of such Loan Document shall
remain in full force and effect and shall not be affected by the illegal,
invalid or unenforceable provision or by its severance from such Loan Document.
Furthermore, in lieu of each such illegal, invalid or unenforceable provision,
there shall be added as part of such Loan Document a provision mutually
agreeable to the Company and Lender as similar in terms to such illegal,
invalid or unenforceable provision as may be possible and be legal, valid and
enforceable.

12.09.    
Maximum
Interest Rate.  Regardless of any provision contained in
any of the Loan Documents, Lenders shall never be entitled to receive, collect
or apply as interest on the Notes any amount in excess of the  Maximum Rate,
and, in the event that Lender ever receives, collects or applies as interest
any such excess, the amount which would be excessive interest shall be deemed
to be a partial prepayment of principal and treated hereunder as such; and, if
the principal amount of the Obligations is paid in full, any remaining excess
shall forthwith be paid to the Company. In determining whether or not the
interest paid or payable under any specific contingency exceeds the Maximum
Rate, the Company and Lenders shall, to the maximum extent permitted under
applicable law, (i) characterize any nonprincipal payment as an expense, fee or
premium rather than as interest; (ii) exclude voluntary prepayments and the
effects thereof; and (iii) amortize, prorate, allocate and spread, in equal
parts, the total amount of interest throughout the entire contemplated term of
the Notes so that the interest rate is uniform throughout the entire term;
provided that, if the Notes are paid and performed in full prior to the end of
the full contemplated term thereof, and if the interest received for the actual
period of existence thereof exceeds the Maximum Rate, Lender shall refund to
the Company the amount of such excess or credit the amount of such excess
against the principal amount of the Notes and, in such event, Lender shall not
be subject to any penalties provided by any laws for contracting for, charging,
taking, reserving or receiving interest in excess of the Maximum Rate.

12.10.    
Successors
and Assigns.

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

(b)          
Assignments
by Lenders.  Any Lender may at any time assign to one or more Eligible
Assignees all or a portion of its rights and obligations under this Loan
Agreement (including all or a portion of its Commitment and the Loans
(including for purposes of this subsection (b), participations in
Letters of Credit and in Swing Line Loans at the time owing to it); provided
that 

(i)            except
in the case of an assignment of the entire remaining amount of the assigning
Lender's Commitment and the Loans at the time owing to it or in the case of an
assignment to a Lender or an Affiliate of a Lender or an Approved Fund with
respect to a Lender, the aggregate amount of the Commitment (which for this
purpose includes Loans outstanding thereunder) or, if the Commitment is not
then in effect, the principal outstanding balance of the Loans of the assigning
Lender subject to each such assignment, determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to
Administrative Agent or, if "Trade Date" is specified in the Assignment and
Assumption, as of the Trade Date, shall not be less than $1,000,000 unless each
of Administrative Agent and, so long as no Event of Default has occurred and is
continuing, the Company otherwise consents (each such consent not to be
unreasonably withheld or delayed); 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

 

47

(ii)           each
partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender's rights and obligations under this Loan Agreement
with respect to the Loans or the Commitment assigned, except that this clause
(ii) shall not apply to rights in respect of Swing Line Loans; 

(iii)          any
assignment of a Commitment must be approved by Administrative Agent and the
Swing Line Lender unless the Person that is the proposed assignee is itself a
Lender (whether or not the proposed assignee would otherwise qualify as an
Eligible Assignee); and

(iv)
the parties to each assignment shall execute and deliver to Administrative
Agent an Assignment and Assumption, together with a processing and recordation
fee of $3,500, and the Eligible Assignee, if it shall not be a Lender, shall
deliver to Administrative Agent an Administrative Questionnaire.

Subject to
acceptance and recording thereof by Administrative Agent pursuant to subsection
(c) of this Section, from and after the effective date specified in
each Assignment and Assumption, the Eligible Assignee thereunder shall be a
party to this Loan Agreement and, to the extent of the interest assigned by
such Assignment and Assumption, have the rights and obligations of a Lender
under this Loan Agreement, and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Assumption, be released
from its obligations under this Agreement (and, in the case of an Assignment
and Assumption covering all of the assigning Lender's rights and obligations
under this Loan Agreement, such Lender shall cease to be a party hereto) but
shall continue to be entitled to the benefits of Sections 4.09, 5.01,
12.16 with respect to facts and circumstances occurring prior to the
effective date of such assignment.  Upon request, the Company (at its expense)
shall execute and deliver a Note to the assignee Lender.  Any assignment or
transfer by a Lender of rights or obligations under this Loan Agreement that
does not comply with this subsection shall be treated for purposes of this Loan
Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with subsection (d) of this Section.

(c)          
Register. 
Administrative Agent, acting solely for this purpose as an agent of the
Company, shall maintain at Administrative Agent's Office a copy of each
Assignment and Assumption delivered to it and a register for the recordation of
the names and addresses of the Lenders, and the Commitments of, and principal
amounts of the Loans owing to, each Lender pursuant to the terms hereof from
time to time (the "Register").  The entries in the Register shall
be conclusive, and the Company, Administrative Agent and the Lenders may treat
each Person whose name is recorded in the Register pursuant to the terms hereof
as a Lender hereunder for all purposes of this Loan Agreement, notwithstanding
notice to the contrary.  The Register shall be available for inspection by the
Company at any reasonable time and from time to time upon reasonable prior
notice.  In addition, at any time that a request for a consent for a material
or substantive change to the Loan Documents is pending, any Lender wishing to
consult with other Lenders in connection therewith may request and receive from
Administrative Agent a copy of the Register.

(d)          
Certain
Pledges.  Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Loan Agreement
(including under its Note, if any) to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve
Bank; provided that no such pledge or assignment shall release such
Lender from any of its obligations hereunder or substitute any such pledgee or
assignee for such Lender as a party hereto.

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

(f)           
Resignation
as Issuer of Letters of Credit or Swing Line Lender after Assignment. 
Notwithstanding anything to the contrary contained herein, if at any time Bank
of America assigns all of its Commitment and Loans pursuant to subsection
(b) above, Bank of America may, (i) upon thirty (30) days' notice to the
Company and the Lenders, resign as issuer of Letters of Credit and/or (ii) upon
thirty (30) days' notice to the Company, resign as Swing Line Lender.  In the
event of any such resignation as issuer of Letters of Credit or Swing Line
Lender, the Company shall be entitled to appoint from among the Lenders a
successor issuer of Letters of Credit or Swing Line Lender hereunder; provided,
however, that no failure by the Company to appoint any such successor shall
affect the resignation of Bank of America as issuer of Letters of Credit or
Swing Line Lender, as the case may be.  If Bank of America resigns as issuer of
Letters of Credit, it shall retain all the rights and obligations of the issuer
of Letters of Credit hereunder with respect to all Letters of Credit
outstanding as of the effective date of its resignation as issuer of Letters of
Credit and all Letter of Credit Exposure with respect thereto.  If Bank of
America resigns as Swing Line Lender, it shall retain all the rights of the
Swing Line Lender provided for hereunder with respect to Swing Line Loans made
by it and outstanding as of the effective date of such resignation.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

48

 

12.11.    
Article
15.10(b).  The Company and
Lenders hereby agree that, except for Article 15.10(b) thereof, the
provisions of Chapter 15 of Title 79 of the Revised Civil Statutes of Texas,
1925, as amended (regulating certain revolving credit loans and revolving
triparty accounts) shall not apply to the Loan Documents.

12.12.    
Entirety.  The Loan Documents embody the entire
agreement between the parties and supersede all prior agreements and understandings,
if any, relating to the subject matter hereof and thereof.

12.13.    
Headings.  Section headings are for convenience of
reference only and shall in no way affect the interpretation of this Loan
Agreement.

12.14.    
Survival.  All representations and warranties made
by the Company herein shall survive delivery of the notes and the making of the
Loans.

12.15.    
No
Third Party Beneficiary.  The parties do not intend the benefits of
this Agreement to inure to any third party, nor shall this Agreement be
construed to make or render any Lender liable to any materialman, supplier,
contractor, subcontractor, purchaser or lessee of any property owned by the
Company, or for debts or claims accruing to any such persons against the
Company. Notwithstanding anything contained herein or in the notes, or in any
other Loan Document, or any conduct or course of conduct by any or all of the
parties hereto, before or after signing this Agreement or any of the other Loan
Documents, neither this Agreement nor any other Loan Document shall be
construed as creating any right, claim or cause of action against any Lender,
or any of its officers, directors, agents or employees, in favor of any
materialman, supplier, contractor, subcontractor, purchaser or lessee of any
property owned by the Company, nor to any other person or entity other than
Company. 

12.16     
Expenses;
Indemnity; Damage Waiver.   

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

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

49

 (b)           	
INDEMNIFICATION BY THE COMPANY.   THE COMPANY SHALL INDEMNIFY ADMINISTRATIVE AGENT (AND ANY SUB-AGENT THEREOF), EACH LENDER, AND EACH RELATED PARTY OF ANY OF THE FOREGOING PERSONS (EACH SUCH PERSON BEING CALLED AN “INDEMNITEE”) AGAINST, AND HOLD EACH INDEMNITEE HARMLESS FROM, ANY AND ALL LOSSES, CLAIMS, DAMAGES,
LIABILITIES AND RELATED EXPENSES (INCLUDING THE FEES, CHARGES AND DISBURSEMENTS OF ANY COUNSEL FOR ANY INDEMNITEE, INCURRED BY ANY INDEMNITEE OR ASSERTED AGAINST ANY INDEMNITEE BY ANY THIRD PARTY OR BY THE COMPANY OR ANY OTHER LOAN PARTY ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF (I) THE EXECUTION OR DELIVERY OF THIS LOAN AGREEMENT, ANY OTHER LOAN
DOCUMENT OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY OR THEREBY, THE PERFORMANCE BY THE PARTIES HERETO OF
THEIR RESPECTIVE OBLIGATIONS HEREUNDER OR THEREUNDER OR THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, (II) ANY LOAN

OR THE USE OR PROPOSED USE OF THE PROCEEDS THEREFROM (INCLUDING ANY REFUSAL TO HONOR A DEMAND FOR PAYMENT UNDER A LETTER OF CREDIT IF THE DOCUMENTS PRESENTED IN CONNECTION WITH SUCH DEMAND DO NOT STRICTLY COMPLY WITH THE TERMS OF SUCH LETTER OF CREDIT), (III) ANY ACTUAL OR ALLEGED PRESENCE OR RELEASE OF HAZARDOUS
MATERIALS ON OR FROM ANY PROPERTY OWNED OR OPERATED BY THE COMPANY OR ANY OF ITS SUBSIDIARIES, OR ANY ENVIRONMENTAL LIABILITY RELATED IN ANY WAY TO THE COMPANY OR ANY OF ITS SUBSIDIARIES, OR (IV) ANY ACTUAL OR
PROSPECTIVE CLAIM, LITIGATION, INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE FOREGOING, WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY, WHETHER BROUGHT
BY A THIRD PARTY OR BY THE COMPANY OR ANY OTHER LOAN PARTY, AND REGARDLESS OF WHETHER ANY INDEMNITEE IS A PARTY THERETO, 
IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF THE INDEMNITEE; 
PROVIDED THAT SUCH INDEMNITY SHALL NOT, AS TO ANY INDEMNITEE, BE AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES, LIABILITIES OR RELATED EXPENSES (X) ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY FINAL AND NONAPPEALABLE JUDGMENT TO HAVE RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNITEE OR (Y) RESULT FROM A CLAIM BROUGHT BY THE COMPANY OR ANY OTHER LOAN PARTY AGAINST AN INDEMNITEE FOR BREACH IN BAD FAITH OF SUCH INDEMNITEE’S OBLIGATIONS HEREUNDER OR UNDER ANY OTHER LOAN DOCUMENT, IF THE COMPANY OR SUCH LOAN PARTY HAS OBTAINED A FINAL AND NONAPPEALABLE
JUDGMENT IN ITS FAVOR ON SUCH CLAIM AS DETERMINED BY A COURT OF COMPETENT JURISDICTION. 

(c)           
Reimbursement
by Lenders.  To the extent that the Company for any reason fails to
indefeasibly pay any amount required under subsection (a) or (b)
of this Section to be paid by it to Administrative Agent (or any sub-agent
thereof) or any Related Party of any of the foregoing, each Lender severally
agrees to pay to Administrative Agent (or any such sub-agent), or such Related
Party, as the case may be, such Lender's Pro Rata Share (determined as of the
time that the applicable unreimbursed expense or indemnity payment is sought)
of such unpaid amount, provided that the unreimbursed expense or indemnified
loss, claim, damage, liability or related expense, as the case may be, was
incurred by or asserted against Administrative Agent (or any such sub-agent),
or against any Related Party of any of the foregoing acting for Administrative
Agent (or any such sub-agent).  The obligations of the Lenders under this
subsection
(c) are subject to the provisions of Section 2.01.

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

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

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

12.17.    
Multiple
Counterparts.  This Loan Agreement may be executed in
any number of counterparts, all of which taken together shall constitute one
and the same agreement, and any of the parties hereto may execute this Loan
Agreement by signing any such counterpart.

12.18     
Survival
of Representations and Warranties.   All representations and warranties made
hereunder and in any other Loan Document or other document delivered pursuant
hereto or thereto or in connection herewith or therewith shall survive the
execution and delivery hereof and thereof.  Such representations and warranties
have been or will be relied upon by Administrative Agent and each Lender,
regardless of any investigation made by Administrative Agent or any Lender or
on their behalf and notwithstanding that Administrative Agent or any Lender may
have had notice or knowledge of any Event of Default at the time of any
Advance, and shall continue in full force and effect as long as any Loan or any
other Obligation hereunder shall remain unpaid or unsatisfied or any Letter of
Credit shall remain outstanding.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

50

 

12.19     
USA
PATRIOT Act Notice.   Each Lender that is subject to the Act
(as hereinafter defined) and Administrative Agent (for itself and not on behalf
of any Lender) hereby notifies the Company 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 Company, which information includes the name
and address of the Company and other information that will allow such Lender or
Administrative Agent, as applicable, to identify the Company in accordance with
the Act.

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

12.21.    
No
Oral Agreements.  THIS WRITTEN LOAN AGREEMENT REPRESENTS
THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE
OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE
ARE NO UNWRITTEN  ORAL AGREEMENTS BETWEEN THE PARTIES.

12.22.    
Arbitration
and Waiver of Jury Trial.

(a)           This
paragraph concerns the resolution of any controversies or claims between the
Company and the Lenders, whether arising in contract, tort or by statute,
including but not limited to controversies or claims that arise out of or
relate to: (i) this Agreement (including any renewals, extensions or
modifications); or (ii) any document related to this Agreement; (collectively a
"Claim").

(b)           At
the request of the Company or the Lenders, any Claim shall be resolved by
binding arbitration in accordance with the Federal Arbitration Act (Title 9, U.
S. Code) (the "Act").  The Act will apply even though this Agreement provides
that it is governed by the law of a specified state.

(c)           Arbitration
proceedings will be determined in accordance with the Act, the applicable rules
and procedures for the arbitration of disputes of JAMS or any successor thereof
("JAMS"), and the terms of this paragraph.  In the event of any
inconsistency, the terms of this paragraph shall control.

 

(d)           The
arbitration shall be administered by JAMS and conducted in San Antonio, Texas. 
All Claims shall be determined by one arbitrator; however, if Claims exceed
$5,000,000, upon the request of any party, the Claims shall be decided by three
arbitrators.  All arbitration hearings shall commence within 90 days of the
demand for arbitration and close within 90 days of commencement and the award
of the arbitrator(s) shall be issued within 30 days of the close of the
hearing.  However, the arbitrator(s), upon a showing of good cause, may extend
the commencement of the hearing for up to an additional 60 days. The
arbitrator(s) shall provide a concise written statement of reasons for the
award.  The arbitration award may be submitted to any court having jurisdiction
to be confirmed and enforced.

(e)           The
arbitrator(s) will have the authority to decide whether any Claim is barred by
the statute of limitations and, if so, to dismiss the arbitration on that
basis. For purposes of the application of the statute of limitations, the
service on JAMS under applicable JAMS rules of a notice of Claim is the
equivalent of the filing of a lawsuit.  Any dispute concerning this arbitration
provision or whether a Claim is arbitrable shall be determined by the
arbitrator(s).  The arbitrator(s) shall have the power to award legal fees
pursuant to the terms of this Agreement.

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

51

(f)            This
paragraph does not limit the right of the Company or the Lender to: (i) 
exercise self-help remedies, such as but not limited to, setoff; (ii)  initiate
judicial or nonjudicial foreclosure against any real or personal property
collateral; (iii)  exercise any judicial or power of sale rights, or (iv)  act
in a court of law to obtain an interim remedy, such as but not limited to,
injunctive relief, writ of possession or appointment of a receiver, or
additional or supplementary remedies.

(g)          
By
agreeing to binding arbitration, the parties irrevocably and voluntarily waive
any right they may have to a trial by jury in respect of any Claim. 
Furthermore, without intending in any way to limit this agreement to arbitrate,
to the extent any Claim is not arbitrated, the parties irrevocably and
voluntarily waive any right they may have to a trial by jury in respect of such
Claim.  This provision is a material inducement for the parties entering into
this Agreement.

 12.23     
Payments
Set Aside.  To the extent that any payment by or on behalf of the
Company is made to Administrative Agent or any Lender, or Administrative Agent
or any Lender exercises its right of setoff, and such payment or the proceeds
of such setoff or any part thereof is subsequently invalidated, declared to be
fraudulent or preferential, set aside or required (including pursuant to any
settlement entered into by Administrative Agent or such Lender in its
discretion) to be repaid to a trustee, receiver or any other party, in
connection with any proceeding under any debtor relief law or otherwise, then
(a) to the extent of such recovery, the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and
effect as if such payment had not been made or such setoff had not occurred,
and (b) each Lender severally agrees to pay to Administrative Agent upon demand
its applicable share (without duplication) of any amount so recovered from or
repaid by Administrative Agent, plus interest thereon from the date of such
demand to the date such payment is made at a rate per annum equal to the
Federal Funds Rate from time to time in effect.  The obligations of the Lenders
under clause (b) of the preceding sentence shall survive the payment in
full of the Obligation and the termination of this Loan Agreement.

12.24     
Restatement
of Existing Loan Agreement.  The parties hereto agree that, on the Closing
Date, after all conditions precedent set forth in Section 7.01 have been
satisfied or waived: (a) the Obligation (as defined herein) represents, among
other things, the amendment, extension, consolidation, and modification of the
"Obligation" (as defined in the Existing Loan Agreement); (b) this Loan
Agreement is intended to, and does hereby, restate, renew, extend, amend,
modify, supersede, and replace the Existing Loan Agreement; (c) the Revolving
Credit Notes executed pursuant to this Loan Agreement amend, renew, extend,
modify, replace, substitute for and supersede in their entirety (but do not
extinguish, the Indebtedness arising under) the promissory notes issued
pursuant to the Existing Loan Agreement; and (d) the entering into and performance
of their respective obligations under this Loan Agreement and the transactions
evidenced hereby do not constitute a novation.

[SIGNATURES ON
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AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

52

SIGNATURE PAGE

TO

REVOLVING CREDIT
LOAN AGREEMENT

(With Letter of
Credit Facility)

IN WITNESS WHEREOF,
the undersigned have executed this Loan Agreement as of the day and year first
above written.

"COMPANY"

ALAMO GROUP
INC.,

a Delaware
corporation

 

By:                                                                                         

Robert H.
George

Vice President

 

 

 

 

 

 

 

SIGNATURE PAGE TO AMENDED AND
RESTATED LOAN AGREEMENT

"OTHER OBLIGATED
GROUP MEMBERS"

 

		
			ALAMO CAPITAL INC.,

			a Nevada corporation

			By:                                                         
			

			        Robert H.
  George

			        Vice President ‐ Administration

				
			ALAMO
  GROUP HOLDINGS, L.L.C.,

			a
  Delaware limited liability company

			By:                                                         
			

			        Robert H. George

			        Vice President ‐ Administration

			
	
				
			
	
			ALAMO GROUP (IA) INC.,

			a Nevada corporation

			By:                                                         
			

			        Robert H.
  George

			        Vice President ‐ Administration

				
			ALAMO SALES CORP.,

			a Delaware corporation

			By:                                                         
			

			        Robert H.
  George

			        Vice President ‐ Administration

			
	
				
			
	
			ALAMO GROUP (KS) INC.,

			a Kansas corporation

			By:                                                         
			

			        Robert H.
  George

			        Vice President ‐ Administration

				
			HERSCHEL‐ADAMS INC.,

			a Nevada corporation

			By:                                                         
			

			      Robert H.
  George

       Vice
  President ‐ Administration

	
				
			
	
			ALAMO GROUP (SMC) INC.,

			a Nevada corporation

			By:                                                         
			

			        Robert H.
  George

			        Vice President ‐ Administration

				
			M&W GEAR COMPANY,

			a Delaware corporation

			By:                                                         
			

			        Robert H.
  George

			        Vice President ‐ Administration

			
	
				
			
	
			ALAMO
  GROUP (TX) L.P.,

			a
  Delaware limited partnership

			By:  Alamo
  Group Holdings, LLC,

       a Delaware limited liability company,

       its General Partner

			By:                                                                 
			

			                Robert H. George

			                Vice President ‐ Administration

				
			SCHULTE (USA) INC.,

			a Florida corporation

			By:                                                         
			

			      Robert H.
  George

      Vice
  President ‐ Administration

	
				
			
	
			ALAMO GROUP (USA) INC.,

			a Delaware corporation

			By:                                                         
			

			        Robert H.
  George

			        Vice President - Administration

				
			SCHWARZE INDUSTRIES, INC.,

			an Alabama corporation

			By:                                                         
			

			      Robert H.
  George

      Vice
  President ‐ Administration

	
			 	
			 
	
			ALAMO GROUP SERVICES INC.,

			a Delaware corporation

			By:                                                         
			

			        Robert H. George

			        Vice President -
  Administration
	
			TIGER CORPORATION,

			a Nevada corporation

			By:                                                         
			

			        Robert H. George

			        Vice President -
  Administration

			 

			 

 

SIGNATURE PAGE TO AMENDED AND
RESTATED LOAN AGREEMENT

"ADMINISTRATIVE AGENT"

BANK OF AMERICA, N.A.

By:                                                                                         

        Suzanne M. Paul, Vice
President

 

 

 

 

 

 

 

SIGNATURE PAGE TO AMENDED AND
RESTATED LOAN AGREEMENT

 

"LENDERS"

Revolving Credit Commitment                                                         BANK
OF AMERICA, N.A.

$25,000,000 

By:                                                                                         

Stevens E.
Warrick, Senior Vice President

 

 

 

 

 

 

 

SIGNATURE PAGE TO AMENDED AND
RESTATED LOAN AGREEMENT

 

JPMORGAN CHASE
BANK

Revolving Credit Commitment

$25,000,000 

By:                                                                                         

       Mark V.
Harris, Senior Vice President

 

 

 

 

 

 

 

 

SIGNATURE PAGE TO AMENDED AND
RESTATED LOAN AGREEMENT

 

GUARANTY BANK

Revolving Credit Commitment

$20,000,000                           
                                                              

 By:                                                                         

       Joseph N.
Petet, Senior Vice President

 

 

 

 

 

 

 

SIGNATURE PAGE TO AMENDED AND
RESTATED LOAN AGREEMENT

 

 

List of Exhibits

		
			
			Exhibit A               
			
	
			
			Closing Documents

	
			
			Exhibit B               
			
	
			
			Revolving Credit Note

	
			
			Exhibit C               
			
	
			
			Swing Line Note

	
			
			Exhibit D               
			
	
			
			Request For Prime Rate Advance

	
			Exhibit E                
			
	
			
			Request For Eurodollar Advance

	
			Exhibit F                
			
	
			
			Form of Guaranty

	
			
			Exhibit G               
			
	
			
			Subsidiaries

	
			
			Exhibit H               
			
	
			
			Permitted Liens

	
			
			Exhibit I                 
			
	
			
			Legal Opinions

	
			
			Exhibit J                
			
	
			
			Compliance Certificate

	
			
			Exhibit K               
			
	
			
			Pending Asset Sales

	
			Exhibit L               
			
	
			
			Assignment and Acceptance Agreement

	
			Exhibit M              
			
	
			Existing Indebtedness

	
			
			Exhibit N               
			
	
			
			List of Existing Guarantors

	
			
			Exhibit O               
			
	
			
			Existing Letters of Credit

	
			Exhibit P                
			
	
			
			Litigation

	
			
			Exhibit Q               
			
	
			
			Permitted Acquisition Certificate

 

 

 

 

 

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

59

 

EXHIBIT "A"

Closing Documents

(1)            Amended
and Restated Revolving Credit Agreement.

(2)            Revolving
Credit Promissory Notes.

    (a)           Bank of America Note

    (b)           Chase Note

    (c)           Guaranty Note

(3)           Guaranties of each Guarantor.

(4)           Opinion
of the Company's Counsel covering the matters set forth on Exhibit "I"
attached to the Loan Agreement.

(5)           Request
For Advance (described in Section 2.03).

(6)           Officer's
Certificate of the Company and of each member of the Obligated Group certifying
(i) the truth and accuracy of all representations and warranties contained
in the other Loan Documents as of the date of Advance, (ii) that no event
has occurred and is continuing, or would result from the Advance, that constitutes
a Potential Default or an Event of Default, and (iii) that no change that
would cause a Material Adverse Effect has occurred since the date of the
financial statements referred to in Section 6.06.

(7)           Resolutions
of the Company and of each member of the Obligated Group approving the
execution, delivery and performance of the Loan Documents and the transactions
contemplated therein, duly adopted by the Company's Board of Directors and
accompanied by a certificate of the Secretary of the Company stating that the
resolutions are true and correct, have not been altered or repealed and are in
full force and effect.

(8)           Incumbency
Certificate for the Company and of each member of the Obligated Group
certifying the names of the officers authorized to sign each of the Loan
Documents to be executed by such Person.

(9)           Certificates
of good standing for the Company and each member of the Obligated Group issued
by its state of incorporation.

(10)         A
copy of the Articles of Incorporation of the Company and each member of the
Obligated Group, and all amendments thereto, certified by the state of
incorporation, and a copy of the bylaws of the Company and each Obligated Group
member, and all amendments thereto, certified by the Secretary of the Company
and each Obligated Group member as being true, correct and complete as of the
date of such certification.

(11)         Copies
of the financial statements referred to in Section 6.06.

(12)         Evidence
satisfactory to Lender that the Company and/or the Obligated Group members have
obtained the insurance coverages required by the Loan Documents.

(13)         Such
other documents and information that are reasonably required by Lender.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

60

EXHIBIT "B"

REVOLVING CREDIT
NOTE

$_________________                                                                                                                                          August
25, 2004

1.             FOR
VALUE RECEIVED, the undersigned, ALAMO GROUP INC., a Delaware corporation (the
"Company"), agrees and promises to pay to the order of
____________________________, or any other owner and holder of this note
(collectively, the "Lender"), at Lender's Lending Office (as
defined in the Loan Agreement defined below), the principal sum of [
____________________ AND NO/100 DOLLARS ($_____________)], in lawful money
of the United States of America, or so much thereof as may be advanced and
outstanding from time to time, together with interest on the unpaid principal
balance outstanding from time to time at the rates and on the dates set forth
herein.

2.             This
note is the Revolving Credit Note issued pursuant to and entitled to the
benefits of the Amended and Restated Revolving Credit Agreement dated August
25, 2004, (the "Loan Agreement"), executed by and among the
Company, Lender and the Subsidiaries of the Company named in the Loan Agreement
as members of the "Obligated Group," each of which is a guarantor of the loan
evidenced by this Note, as the same may be amended, modified or restated from
time to time. Terms defined in the Loan Agreement are used herein with the same
meanings.  Reference is made to the Loan Agreement for all purposes relating to
the terms of this Note, including (i) the obligation of Lender to advance
funds hereunder, (ii) the prepayment rights and obligations of the Company
and (iii) the events on which the maturity of this Note may be
accelerated.

3.             The
unpaid principal amount of, and accrued unpaid interest on, this Note is
payable in accordance with the Loan Agreement, but not later than August
25, 2009.

4.             The
unpaid principal balance advanced and outstanding hereunder shall bear interest
from the date of advance until maturity at the rate per annum provided in the
Loan Agreement that is selected by the Company pursuant to the Loan Agreement. 
The interest rate specified in this section is subject to adjustment under the
circumstances described in the Loan Agreement.  Interest shall be computed in
the manner provided in the Loan Agreement.

5.             Notwithstanding
any provision contained in this Note or any other document executed or
delivered in connection with this Note or in connection with the Loan
Agreement, the Lender shall never be deemed to have contracted for or be
entitled to receive, collect or apply as interest on this Note, any amount in
excess of the maximum rate of  interest permitted to be charged by applicable
law, and, if the Lender ever receives, collects or applies as interest any such
excess, then the amount that would be excessive interest shall be applied to
reduce the unpaid principal balance of this Note, and, if the principal balance
of this Note is paid in full by that application, then any remaining excess
shall promptly be paid to the Company.  In determining whether the interest
paid or payable under any specific contingency exceeds the highest lawful rate,
the Company and the Lender shall, to the maximum extent permitted under
applicable law, (i) characterize any non-principal payment (other than payments
expressly designated as interest payments hereunder) as an expense or fee
rather than as interest, (ii) exclude voluntary prepayments and the effect
thereof, and (iii) spread the total amount of interest throughout the entire
contemplated term of this Note so that the interest rate is uniform throughout
that term.

6.             If
the principal of, or any installment of interest on, this Note becomes due and
payable on a day other than a Business Day, then the maturity thereof shall be
extended to the next succeeding Business Day. If this Note, or any installment
or payment due hereunder, is not paid when due, whether at maturity or by
acceleration, or if it is collected through a bankruptcy, probate or other
court, whether before or after maturity, then the Company shall pay all costs
of collection, including, but not limited to, reasonable attorney's fees
incurred by the holder of this Note.  All past due principal of, and to the
extent permitted by applicable law, interest on this Note shall bear interest
until paid at the rate provided in the Loan Agreement.

7.             The
Company and all sureties, endorsers, guarantors and other parties ever liable
for payment of any sums payable pursuant to the terms of this Note, jointly and
severally waive demand, presentment for payment, protest, notice of protest,
notice of acceleration, notice of intent to accelerate, diligence in
collection, the bringing of any suit against any party and any notice of or
defense on account of any extensions, renewals, partial payments or changes in
any manner of or in this Note or in any of its terms, provisions and covenants,
or any releases or substitutions of any security, or any delay, indulgence or
other act of any trustee or any holder hereof, whether before or after maturity.

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

61

 

8.             All
Advances made by Lender, the respective Interest Periods thereof (if
applicable), and all repayments of the principal thereof shall be recorded by
Lender and, before any transfer hereof, endorsed by Lender on the schedule
attached hereto, or on a continuation of the schedule attached to and made a
part hereof, provided that the failure of Lender to record any
endorsement shall not affect the Obligations of the Company hereunder or under
the Loan Agreement.

9.             This
Note, together with the other Revolving Credit Notes issued on the date hereof
pursuant to the Loan Agreement, are being issued in substitution of, and
supersede and replace, the "Revolving Credit Notes" (as the same may
have been amended and replaced to the date hereof) executed and delivered
pursuant to the Existing Loan Agreement (as defined in the Loan Agreement). 
The Indebtedness evidenced by this Note (and the other Revolving Credit Notes
issued pursuant to the Loan Agreement) is the renewal, amendment and extension
of the revolving credit Indebtedness under the Existing Loan Agreement.

ALAMO GROUP
INC.

By:                                                                                                 

       Robert H.
George

       Vice President

 

 

 

 

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

62

EXHIBIT "C"

SWING LINE NOTE

$5,000,000.00                                                                                                                                                            August
25, 2004

1.             FOR
VALUE RECEIVED, the undersigned, ALAMO GROUP INC., a Delaware corporation (the
"Company"), agrees and promises to pay to the order of Bank of
America, N.A. or any other owner and holder of this note (collectively, the "Lender"),
at Lender's Lending Office (as defined in the Loan Agreement defined below),
the principal sum of FIVE MILLION DOLLARS ($5,000,000.00), in lawful money of
the United States of America, or so much thereof as may be advanced and
outstanding from time to time, together with interest on the unpaid principal
balance outstanding from time to time at the rates and on the dates set forth
herein.

2.             This
note is the Swing Line  Note issued pursuant to and entitled to the benefits of
the Amended and Restated Revolving Credit  Agreement dated August 25, 2004,
(the "Loan Agreement"), executed by and among the Company, Lender
and the Subsidiaries of the Company named in the Loan Agreement as members of
the "Obligated Group," each of which is a guarantor of the loan evidenced by
this Note, as the same may be amended, modified or restated from time to time.
Terms defined in the Loan Agreement are used herein with the same meanings. 
Reference is made to the Loan Agreement for all purposes relating to the terms
of this Note, including (i) the obligation of Lender to advance funds
hereunder, (ii) the prepayment rights and obligations of the Company and
(iii) the events on which the maturity of this Note may be accelerated.

3.             The
unpaid principal amount of, and accrued unpaid interest on, this Note is
payable in accordance with the Loan Agreement, but not later than the Swing
Line Maturity Date

4.             The
unpaid principal balance advanced and outstanding hereunder shall bear interest
from the date of advance until maturity at the rate per annum provided in the
Loan Agreement that is selected by the Company pursuant to the Loan Agreement. 
The interest rate specified in this section is subject to adjustment under the
circumstances described in the Loan Agreement.  Interest shall be computed in
the manner provided in the Loan Agreement.

5.             Notwithstanding
any provision contained in this Note or any other document executed or
delivered in connection with this Note or in connection with the Loan
Agreement, the Lender shall never be deemed to have contracted for or be
entitled to receive, collect or apply as interest on this Note, any amount in
excess of the maximum rate of  interest permitted to be charged by applicable
law, and, if the Lender ever receives, collects or applies as interest any such
excess, then the amount that would be excessive interest shall be applied to
reduce the unpaid principal balance of this Note, and, if the principal balance
of this Note is paid in full by that application, then any remaining excess
shall promptly be paid to the Company.  In determining whether the interest
paid or payable under any specific contingency exceeds the highest lawful rate,
the Company and the Lender shall, to the maximum extent permitted under
applicable law, (i) characterize any non-principal payment (other than payments
expressly designated as interest payments hereunder) as an expense or fee
rather than as interest, (ii) exclude voluntary prepayments and the effect
thereof, and (iii) spread the total amount of interest throughout the entire
contemplated term of this Note so that the interest rate is uniform throughout
that term.

6.             If
the principal of, or any installment of interest on, this Note becomes due and
payable on a day other than a Business Day, then the maturity thereof shall be
extended to the next succeeding Business Day. If this Note, or any installment
or payment due hereunder, is not paid when due, whether at maturity or by
acceleration, or if it is collected through a bankruptcy, probate or other
court, whether before or after maturity, then the Company shall pay all costs
of collection, including, but not limited to, reasonable attorney's fees
incurred by the holder of this Note.  All past due principal of, and to the
extent permitted by applicable law, interest on this Note shall bear interest
until paid at the rate provided in the Loan Agreement.

7.             The
Company and all sureties, endorsers, guarantors and other parties ever liable
for payment of any sums payable pursuant to the terms of this Note, jointly and
severally waive demand, presentment for payment, protest, notice of protest,
notice of acceleration, notice of intent to accelerate, diligence in
collection, the bringing of any suit against any party and any notice of or
defense on account of any extensions, renewals, partial payments or changes in
any manner of or in this Note or in any of its terms, provisions and covenants,
or any releases or substitutions of any security, or any delay, indulgence or
other act of any trustee or any holder hereof, whether before or after
maturity.

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

63

 

8.             All
Advances made by Lender, the respective Interest Periods thereof (if
applicable), and all repayments of the principal thereof shall be recorded by
Lender and, before any transfer hereof, endorsed by Lender on the schedule
attached hereto, or on a continuation of the schedule attached to and made a
part hereof, provided that the failure of Lender to record any
endorsement shall not affect the Obligations of the Company hereunder or under
the Loan Agreement.

9.             This
Note is being issued in substitution of, and supersedes and replaces, the "Swing
Line Note" (as the same may have been amended and replaced to the date
hereof) executed and delivered pursuant to the Existing Loan Agreement (as
defined in the Loan Agreement).  The Indebtedness evidenced by this Note is the
renewal, amendment and extension of the revolving credit Indebtedness under the
Existing Loan Agreement.

ALAMO GROUP
INC.

By:                                                                                                 

      Robert H.
George

      Vice President

 

 

 

 

 

 

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

64

EXHIBIT "D"

REQUEST FOR  PRIME
RATE ADVANCE

1.            
Submission
Pursuant To Loan Agreement.  This Request for Prime Rate Advance is
executed and delivered by Alamo Group Inc. ("Company"), to Bank of
America, N.A. as Administrative Agent for the Lenders, ("Lender")
pursuant to Section 2.03 of the Amended and Restated Revolving Credit
Agreement, dated August 25, 2004 between Company and Lender (the "Agreement"). 
Any capitalized terms used and not defined herein have the meanings assigned to
them in the Agreement.

2.            
Request
For Advance.  Company hereby requests that Lender make a Prime Rate Advance
to Company pursuant to the Agreement as follows:

 o  Swing
Line Note (Note Number _______________):

 o       
Revolving Credit Note (Note Number _______________):

   (a)           Amount of Prime Rate Advance:_______________________.

   (b)           Date of Advance:  _________.

 o        $____________
of the proceeds of this Advance are being used to make an Acquisition. [Check
only if required by the terms of the Loan Agreement]

3.        
Representations,
Warranties and Certifications. Company hereby represents, warrants, and
certifies to Lender that as of the date of the Prime Rate Advance requested herein:

(a)           There
exists no Event of Default or any condition which, if uncured, will become an
Event of Default.

(b)           Company
has performed and complied with all agreements and conditions contained in the
Agreement that are required to be performed or complied with by Company.

(c)           The
representations and warranties of a continuing nature contained in the
Agreement and each of the other Loan Documents are true in all respects, with
the same force and effect as though made on and as of the date of the Advance.

4.       
Proceeds
of Advances.  Lender is authorized to deposit the proceeds of the Advance
requested hereby, other than an Advance constituting a rollover of an existing
Advance, to:                                                                                                      

.

5.        
Execution
Authorized.  This Request for Prime Rate Advance is executed on [                    ,
200__ ]  , by an authorized officer of Company.  Each of the undersigned,
in such capacity, hereby certifies each and every matter contained herein to be
true and correct.

ALAMO GROUP
INC., a Delaware corporation

By:                                                                                                 

Name:                                                                                            

Title:                                                                                              

 

 

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

65

 

EXHIBIT "E"

REQUEST FOR 
EURODOLLAR ADVANCE

1.            
Submission
Pursuant To Loan Agreement.  This Request for Request for Eurodollar
Advance is executed and delivered by Alamo Group Inc. ("Company"), to
Bank of America, N.A., as Administrative Agent for the Lenders ("Lender"),
pursuant to Section 2.03 of the Amended and Restated Revolving Credit
Agreement, dated August 25, 2004 between Company and Lenders (the "Agreement"). 
Any capitalized terms used and not defined herein have the meanings assigned to
them in the Agreement.

2.            
Request
For Advance.  Company hereby requests that Lender make a Eurodollar Advance
to Company pursuant to the Agreement as follows:

o          Revolving
Credit Note (Note Number _______________):

(a)           Amount
of Eurodollar Advance:       ($                                                                          
)

o        Advance

o        Rollover

(b)           Date of Advance or Rollover of Existing Advance: 
                                                   
.

(c)           Eurodollar Interest Period:________months (one, two,
three, or six).

(d)           Rate quoted by Lender:  __________.

o         $__________
of the proceeds of this Advance are being used to make an acquisition. [Check
if required by the terms of the Loan Agreement]

3.         
Representations,
Warranties and Certifications. Company hereby represents, warrants, and
certifies to Lender that as of the date of the Eurodollar Advance requested
herein:

(a)           There
exists no Event of Default or any condition which, if uncured, will become an
Event of Default.

(b)           Company
has performed and complied with all agreements and conditions contained in the
Agreement that are required to be performed or complied with by Company.

(c)           The
representations and warranties of a continuing nature contained in the
Agreement and each of the other Loan Documents are true in all respects, with
the same force and effect as though made on and as of the date of the Advance.

4.         
Proceeds
of Advances.  Lender is authorized to deposit the proceeds of the Advance
requested hereby, other than an Advance constituting a rollover of an existing
Advance, to:                                                                                                     . 

5.          
Execution
Authorized.  This Request for Eurodollar Advance is executed on                         ,
20_, by an authorized officer of Company.  Each of the undersigned, in such
capacity, hereby certifies each and every matter contained herein to be true
and correct.

ALAMO GROUP
INC., a Delaware corporation

By:                                                                                                         

Name:                                                                                                    

Title:                                                                                                      

 

 

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

66

EXHIBIT "F"

GUARANTY AGREEMENT

THIS GUARANTY AGREEMENT (this "Guaranty")
by ___________________________________, a ________________________ (the "Guarantor"),
is for the benefit of BANK OF AMERICA, N.A., a national banking association,
whose mailing address is 300 Convent Street, P.O. Box 300, San Antonio,
Texas 78291-0300, as Administrative Agent (herein so called) for the Lenders
(collectively herein so called, and individually, a "Lender"), and is
made and delivered pursuant to that certain Amended and Restated Revolving
Agreement (With Letter of Credit Facility) (the "Loan Agreement"),
dated August 25, 2004, by and among Alamo Group Inc., a Delaware corporation
(the "Borrower"), and its subsidiaries that are named therein as
members of the "Obligated Group," and the Lenders, as the same may hereafter be
amended, modified or restated from time-to-time and at any time.  All
capitalized terms used but not defined herein shall have the meaning assigned
to them in the Loan Agreement.  

W I T N E S S E T
H:

WHEREAS, 
Lenders have extended and will extend credit and financial accommodations to
the Borrower, in a principal amount not to exceed at any given time, from
time-to-time, the Revolving Credit Commitment (collectively, the "Loans")
pursuant to the terms of the Loan Agreement;

WHEREAS,
Guarantor is a wholly-owned subsidiary or an Affiliate (as defined in the Loan
Agreement) of the Borrower and will derive direct and indirect economic
benefits from the Borrower as a result of the Loans;

NOW, THEREFORE,
(i) to induce the Lenders, at any time from time-to-time, to loan monies,
without security to or for the account of Borrower, (ii) at the special
insistence and request of the Lenders, and (iii) for other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Guarantor hereby agrees as follows:

1.             Guarantor
hereby absolutely and unconditionally guarantees the prompt and punctual
payment and performance when due (whether at its maturity, by lapse of time, by
acceleration or otherwise) of the Guaranteed Obligations (hereinafter
defined).  This is a continuing guaranty applicable to and guaranteeing any and
all indebtedness, obligations, and liabilities of every kind and character of
Borrower to the Lenders, whether now existing or hereafter arising, whether due
and owing or to become due and owing, whether joint or several, or joint and
several, whether absolute or contingent, as created and evidenced by, and
arising under, the Loan Agreement and the Notes, and all renewals, extensions,
increases, and rearrangements of such indebtedness, obligations or liabilities,
including any and all amounts owing or which may hereafter become owing thereon
or in connection therewith, including, without limitation, any and all amounts
of principal, interest, attorneys' fees, costs of collection and other amounts
owing thereunder (hereinafter collectively called the "Guaranteed
Obligations").

2.             Guarantor
hereby waives marshalling of assets and liabilities, sale in inverse order of
alienation, notice of acceptance of this Guaranty and of any indebtedness,
obligation or liability to which it applies or may apply, and waives
presentment and demand for payment thereof, notice of dishonor or nonpayment
thereof, notice of intention to accelerate, notice of acceleration, protest,
and notice thereof and all other notices and demands, collection or instigation
of suit or any other action by Administrative Agent or Lenders in collection
thereof, including any notice of default in payment thereof or other notice to,
or demand of payment therefor on, any party.  Further, Guarantor expressly
waives each and every right to which it may be entitled by virtue of the
suretyship law of the State of Texas including without limitation, any rights
it may have pursuant to Rule 31, Texas Rules of Civil Procedure, Articles 1986
and 1987, Revised Civil Statutes of Texas and Chapter 34 of the Texas Business
and Commerce Code.

3.             Guarantor
agrees to pay to Administrative Agent and the Lenders their collection costs,
including any additional amount for reasonable attorneys' fees (including, but
not limited to, reasonable expenses and hourly fees of in-house counsel of
Administrative Agent or any Lender and independent counsel to Administrative
Agent or any Lender), but in no event to exceed the maximum amount permitted by
law, if the Guaranteed Obligations are not paid by Guarantor upon demand when
due as required herein or if this Guaranty is enforced by suit or through
probate or bankruptcy court or through any judicial proceedings whatsoever, and
should it be necessary to reduce the Lenders' claims to judgment, such judgment
shall bear interest at the Maximum Rate.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

67

4.             This
is an absolute and unconditional guaranty of payment and not of collection, by
Guarantor, jointly and severally with any other guarantor, of the Guaranteed
Obligations in each and every particular, and Guarantor waives any right to
require that (a) any action be brought against Borrower or any other
person or entity, (b) Administrative Agent or the Lenders enforce rights
against any other guarantor of the Guaranteed Obligations,
(c) Administrative Agent or the Lenders proceed or enforce rights against
or exhaust any security given to secure the Guaranteed Obligations,
(d) Administrative Agent or the Lenders have Borrower joined with
Guarantor or any other guarantor of all or part of the Guaranteed Obligations
in any suit arising out of this Guaranty and/or the Guaranteed Obligations, or
(e) Administrative Agent or the Lenders pursue any other remedy in their
power whatsoever.  The Administrative Agent or the Lenders shall not be
required to mitigate damages or take any action to reduce, collect or enforce
the Guaranteed Obligations.  Guarantor waives any defense arising by reason of
any disability, lack of corporate authority or power, or other defense of
Borrower or any other guarantor of the Guaranteed Obligations, and shall remain
liable hereon regardless of whether Borrower or any other guarantor be found
not liable thereon for any reason.  Should Administrative Agent or the Lenders
seek to enforce the obligations of Guarantor by action in any court, Guarantor
waives any necessity, substantive or procedural, that a judgment previously be
rendered against Borrower or any other person or entity or that Borrower or any
other person or entity be joined in such cause or that a separate action be
brought against Borrower or any other person or entity.  The obligations of
Guarantor hereunder are several from those of Borrower or any other person or
entity (including without limitation any other surety for Borrower), and are
primary obligations concerning which Guarantor is the principal obligor.  All
waivers herein contained shall be without prejudice to Administrative Agent or
the Lenders at their option to proceed against Borrower or any other person or
entity, whether by separate action or by joinder.

5.             Guarantor
agrees that suit may be brought against Guarantor and any other guarantors of
the Guaranteed Obligations, jointly and severally, and against one or more of
them, less than all, without impairing the rights of Administrative Agent or
the Lenders against the other guarantors; nor shall Administrative Agent or the
Lenders be required to join Borrower or any other guarantor or liable party in
a suit against a particular guarantor; and Administrative Agent and the Lenders
may release Borrower and/or one or more guarantor(s) or settle with such
persons or entities as they deem fit without releasing or impairing the rights
of Administrative Agent or the Lenders, to demand and collect the balance of
such indebtedness the other remaining guarantors not so released.

6.             Guarantor
hereby consents and agrees to each of the following to the fullest extent
permitted by law, and agrees that the Guarantor's obligations under this
Guaranty shall not be released, diminished, impaired, reduced or adversely
affected by any of the following, and waives any rights (including without
limitation rights to notice) which Guarantor might otherwise have as a result
of or in connection with any of the following:

(a)           Any
renewal (whether one or more), extension, modification, increase, decrease,
alteration or rearrangement of all or any part of the Guaranteed Obligations or
any instrument executed in connection therewith, or any contract or
understanding between (i) Borrower and Administrative Agent or the
Lenders, or (ii) Borrower, Administrative Agent, the Lenders, or any other
person or entity, pertaining to the Guaranteed Obligations;

(b)           Any
adjustment, indulgence, forbearance or compromise that might be granted or
given by Administrative Agent or the Lenders to Borrower or Guarantor or any
person or entity liable on the Guaranteed Obligations;

(c)           The
insolvency, bankruptcy arrangement, adjustment, composition, liquidation,
disability, dissolution, death or lack of power of Borrower or Guarantor or any
other person or entity at any time liable for the payment of all or part of the
Guaranteed Obligations; or any dissolution of Borrower or Guarantor, or any
sale, lease or transfer of any or all of the assets of Borrower or Guarantor,
or any changes in the shareholders, partners, or members of Borrower or
Guarantor; or any reorganization of Borrower or Guarantor;

(d)           The
invalidity, illegality or unenforceability of all or any part of the Guaranteed
Obligations, or any document or agreement executed in connection with the
Guaranteed Obligations, for any reason whatsoever, including without limitation
the fact that the Guaranteed Obligations, or any part thereof, exceed the
amount permitted by law, the act of creating the Guaranteed Obligations or any
part thereof is without corporate power, the officers or representatives
executing the documents or otherwise creating the Guaranteed Obligations acted
in excess of their authority, the Guaranteed Obligations violate applicable
usury laws, Borrower having valid defenses, claims or offsets (whether at law,
in equity or by agreement) which render the Guaranteed Obligations wholly or
partially uncollectible amount Borrower, the creation, performance or repayment
of the Guaranteed Obligations (or the execution, delivery and performance of
any document or instrument representing part of the Guaranteed Obligations or
executed in connection with the Guaranteed Obligations, or given to secure the
repayment of the Guaranteed Obligations) is illegal, uncollectible, legally
impossible or unenforceable, or the documents or instruments pertaining to the
Guaranteed Obligations have been forged or otherwise are irregular or not
genuine or authentic;

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

68

 

(e)           Any
full or partial release of the liability of Borrower on the Guaranteed
Obligations or any part thereof, of any co‐guarantors, or any other
person or entity now or hereafter liable, whether directly or indirectly,
jointly, severally, or jointly and severally, to pay, perform, guarantee or
assure the payment of the Guaranteed Obligations or any part thereof, it being
recognized, acknowledged and agreed by Guarantor that Guarantor may be required
to pay the Guaranteed Obligations in full without assistance or support of any
other person or entity, and Guarantor has not been induced to enter into this
Guaranty on the basis of a contemplation, belief, understanding or agreement
that other parties other than Borrower will be liable to perform the Guaranteed
Obligations, or the Lender may look to other parties to perform the Guaranteed
Obligations;

(f)            The
taking or accepting of any, or any other, security, collateral or guaranty, or
other assurance of payment, for all or any part of the Guaranteed Obligations;

(g)           Any
release, surrender, exchange, subordination, deterioration, waste, loss or
impairment (including, without limitation, negligent, willful, unreasonable or
unjustifiable impairment) of any collateral, property or security, at any time
existing in connection with, or curing or securing payment of, all or any part
of the Guaranteed Obligations;

(h)           The
failure of Administrative Agent or any Lender or any other person or entity to
exercise diligence or reasonable care in the preservation, protection,
enforcement, sale or other handling or treatment of all or any part of such
collateral, property or security;

(i)            The
fact that any collateral, security, security interest or lien contemplated or
intended to be given, created or granted as security for the repayment of the
Guaranteed Obligations shall not be properly perfected or created, or shall
prove to be unenforceable or subordinate to any other security interest or
lien, it being recognized and agreed by Guarantor that Guarantor is not
entering into this Guaranty in reliance on, or in contemplation of the benefits
of, the validity, enforceability, collectibility or value of the collateral (if
any) for the Guaranteed Obligations;

(j)            Any
payment by Borrower to Administrative Agent or a Lender is held to constitute a
preference under the bankruptcy law, or for any reason Administrative Agent or
a Lender is required to refund such payment or pay such amount to Borrower or
someone else;

(k)           Any
other action taken or omitted to be taken with respect to the Guaranteed
Obligations, or the security and collateral therefor, whether or not such
action or omission prejudices Guarantor or increases the likelihood that
Guarantor will be required to pay the Guaranteed Obligations pursuant to the
terms hereof; it being the unambiguous and unequivocal intention of Guarantor
that Guarantor shall be obligated to pay the Guaranteed Obligations when due,
notwithstanding any occurrence, circumstance, event, action, or omission
whatsoever, whether contemplated or uncontemplated, and whether or not
otherwise or particularly described herein, except for the full and final
payment and satisfaction of the Guaranteed Obligations; or

(l)            The
fact that all or any of the Guaranteed Obligations cease to exist by operation
of law, including without limitation by way of a discharge, limitation or
tolling thereof under applicable bankruptcy laws.

7.             If
any payment by Borrower or any other guarantor of all or part of the Guaranteed
Obligations to Administrative Agent or a Lender is held to be a preference
under the bankruptcy laws, or if for any other reason Administrative Agent or a
Lender is required to refund such payment or pay the amount thereof to any
other party, such payment by Borrower or by such guarantor to Administrative
Agent or a Lender shall not constitute a release of Guarantor from any
liability respecting payment of the Guaranteed Obligations, and Guarantor
agrees to pay such amount to Administrative Agent or such Lender upon demand.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

69

 

8.             If
this Guaranty would constitute or result in a violation of any applicable
fraudulent conveyance or similar law of any relevant jurisdiction, the
liability of Guarantor under this Guaranty shall be reduced to the maximum
amount permissible under the applicable fraudulent conveyance or similar law.

9.             The
maximum interest rate provisions set forth in the loan Agreement are hereby
incorporated by reference into this Guaranty and are made a part hereof for all
purposes; it being agreed that all rights and remedies of Administrative Agent
and the Lenders hereunder are subject to such provisions.

10.           This
Guaranty is for the benefit of Administrative Agent and the Lenders, and for
such other persons and entities as may from time-to-time become or be the
holders of any Guaranteed Obligations; and this Guaranty shall be transferable
and negotiable, with the same force and effect and to the same extent as the
Guaranteed Obligations may be transferable, it being understood that upon the
assignment or transfer by any Lender of any Guaranteed Obligations, the legal
holder of such Guaranteed Obligations shall have all of the rights granted to
the transferring Lender under this Guaranty.

11.           Payment
of all amounts hereunder shall be made at the offices of Administrative Agent
at Bexar County, Texas.

12.           Any
notice, request or other communication required or permitted to be given
hereunder shall be given as provided in the Loan Agreement.  Guarantor will
comply with and perform all native and negative covenants and agreements made
by the Borrower in the loan Agreement with respect to the Guarantor.  All
representations and warranties made by the Borrower in the Loan Agreement with
respect to the Guarantor are true and correct as of the date of this Guaranty. 
The Administrative Agent and the Lenders shall be entitled to rely on all of
the representations and warranties made by the Borrower in the loan Agreement
with respect to the Guarantor with the same force and effect as though they
were incorporated in this Guaranty and made by the Guarantor for the Lenders
herein.

13.           This
Guaranty shall not be wholly or partially satisfied or extinguished by
Guarantor's payment of any amount hereunder, including payment of all amounts
due as of any specified date, but shall continue in full force and effect as
against Guarantor for the full amount, except as otherwise specified herein, as
to all Guaranteed Obligations created, incurred or arising prior to the time when
notice of termination is given by the Guarantor to Administrative Agent as
specified herein, or which thereafter may be incurred for which the Lenders
have, prior to the affective date of such notice, committed to lend to
Borrower, and until payment full thereof.  Any and all extensions of credit and
financial accommodations made concurrently herewith or hereafter made by the
Lenders to Borrower shall be conclusively presumed to have been made in
acceptance hereof.

14.           This
Guaranty shall be binding upon Guarantor, its successors and assigns and shall
inure to the benefit of, and be enforceable by Administrative Agent and the
Lenders and their respective successors and assigns and each and every other
person who shall from time-to-time be or become the owner or holder of any of
the Guaranteed Obligations, and each and every reference herein to the
"Administrative Agent" or the "Lender" or the
"Lenders" shall also include each and every successor, assign, owner
or bolder.  Guarantor shall not assign or delegate its obligations hereunder
without the prior written consent of the Required Lenders, which consent may be
withheld in the Lenders' sole discretion.

15.           The
undersigned guaranteeing corporation does hereby acknowledge that it has
determined the benefits and advantages which will be derived by the undersigned
from execution of this Guaranty, and the Board of Directors of the undersigned
corporation has made such determination, and the undersigned corporation does
hereby acknowledge, warrant and represent that, a direct or an indirect
economic benefit will accrue to the undersigned by reason of execution of this
Guaranty.

16.           This
Guaranty shall be in addition to and cumulative of, and not in substitution,
novation or discharge of, any and all prior or contemporaneous guaranty
agreements by Guarantor or other persons or entities, in favor of any Lender or
assigned to any Lender by others.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

70

 

17.           Guarantor
represents and warrants that (i) this Guaranty is not given with actual
intent to hinder, delay or dead any entity to which Guarantor is or will
become, on or after the date hereof, indebted; (ii) Guarantor has received
at least a reasonably equivalent value in exchange for the giving of this
Guaranty; (iii) Guarantor is not insolvent on the date hereof and will not
become insolvent as a result of the giving of this Guaranty;
(iv) Guarantor is not engaged in a business or transaction, nor is about
to engage in a business or transaction, for which any property remaining with
Guarantor constitutes an unreasonably small amount of capital; and
(v) Guarantor does not intend to incur debts that will be beyond the
Guarantor's ability to pay as such debts mature.

18.           Guarantor
will not change its address, name or identity without notifying Administrative
Agent of such change in writing at least ten (10) Business Days prior to the
effective date of such change.

19.           No
delay on the part of Administrative Agent or any Lender in exercising any right
hereunder or failure to exercise the same shall operate as a waiver of such
right, nor shall any single or partial exercise of any right, power or
privilege bar any farther or subsequent exercise of the same or any other
right, power or privilege.

20.           This
Guaranty shall not be changed orally, but shall be changed only by agreement in
writing signed by the person against whom enforcement of such change is sought.

21.           The
masculine and neuter genders used herein shall each include the masculine,
feminine and neuter genders and the singular number used herein shall include
the plural number. The words "person" and "entity" shall
include without limitation individuals, corporations, partnerships, joint
ventures, associations, joint stock companies, trusts, unincorporated
organizations, and governments and any agency or political subdivision thereof.

22.           This
Guaranty may be executed in multiple counterparts, and each counterpart
executed by any party shall be deemed an original and shall be binding upon the
person or entity executing the same, irrespective of whether any other Guarantor
has executed this or any other counterpart of this Guaranty.  Production of any
counterpart other than the one to be enforced shall not be required.

23.           If
any provision of this Guaranty is determined to be invalid by any court of
competent jurisdiction or to be in violation of any applicable law, such
invalidity or violation shall have no effect on any other provisions of this
Guaranty (which shall remain valid and binding and in full force and effect) or
in any other jurisdiction, and to that end the provisions of this Guaranty
shall be considered severable.

24.           Guarantor
expressly waives any and all rights of subrogation, reimbursement and
contribution (contractual, statutory or otherwise) against the Borrower,
including without limitation, any claim or right of subrogation under the
Bankruptcy Code (Title 11 of the U.S. Code) or any successor statute, arising
from the existence or performance of this Guaranty and the Guarantor
irrevocably waives any right to enforce any remedy which the Lenders now have
or may hereafter have against the Borrower and waives any benefit of, and any
right to participate in, any security now or hereafter held by Administrative
Agent or the Lenders until the Guaranteed Obligations have been paid in
full and until all commitments of the Lenders to extend credit to the Borrower
under the Loan Agreement and the other Loan Documents have terminated.

25.           Guarantor
hereby expressly covenants and agrees for the benefit of Administrative Agent
and the Lenders that all obligations and liabilities of the Borrower and the
other Guarantors, or any one or more of them, to the Guarantor of whatsoever
description (including, without limitation, all intercompany receivables of the
Guarantor from the Borrower) shall be subordinated and junior in right of
payment to the Guaranteed Obligations, provided that scheduled payments (but
not prepayments) may be made until there occurs a Potential Default or Event of
Default.  Following the occurrence of a Potential Default or an Event of Default,
any indebtedness of the Borrower to the Guarantor shall, if Administrative
Agent shall so request, be collected and received by the Guarantor as trustee
for Administrative Agent and paid over to Administrative Agent on account of
the Guaranteed Obligations, but without reducing or affecting in any manner the
liability of the Guarantor under this Guaranty.

26.           (a)           This
Guaranty shall be governed by, and construed in accordance with, the laws of
the State of Texas, except to the extent provided in Paragraph 26(b) below and
to the extent that the federal laws of the United States of America may
otherwise apply.

    (b)           Notwithstanding
anything in Paragraph 26(a) above to the contrary, nothing in this Guaranty
shall be deemed to constitute a waiver of any rights which Administrative Agent
or the Lenders have under the National Bank Act or other applicable federal
law.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

71

 

27.           Any
legal action or proceeding with respect to this Guaranty may be brought in the
courts of the State of Texas, County of Bexar or of the United States courts
located in Bexar County, State of Texas, and by execution and delivery of this
Guaranty, Guarantor hereby consents, for itself and in respect of its property,
to the nonexclusive jurisdiction of the aforesaid courts.  Guarantor hereby irrevocably
waives any objection, including any objection to the laying of venue or based
on the grounds of inconvenient forum which it may now or hereafter have to the
bringing of any action or proceeding in such jurisdiction in respect of this
Guaranty or any document related hereto.  Guarantor hereby waives personal
service of any summons, complaint or other process, which may be made by any
other means permitted by Texas law.

28.          THIS
GUARANTY EMBODIES THE ENTIRE AGREEMENT AND UNDERSTANDING OF GUARANTOR AND
SUPERSEDES PRIOR AND CONTEMPORANEOUS AGREEMENTS AND UNDERSTANDINGS OF
GUARANTOR, VERBAL OR WRITTEN, RELATING TO THE SUBJECT MATTER HEREOF.

   THIS WRITTEN
GUARANTY AND THE INSTRUMENTS AND DOCUMENTS EXECUTED IN CONNECTION HEREWITH,
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED
BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES.

THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

EXECUTED this
_____ day of  August, 2004.

"Guarantor"

_______________________________                                        Address:

By:                                                                         
                                ____________________

      Robert H. George                                                                              ____________________

      Vice President - Administration

 

 

 

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

72

	EXHIBIT “G”
	 	 
	 	 
	
	(excluding dormant subsidiaries with insubstantial assets)

	 	 
	Name	Ownership
	 	 
	Alamo Capital Inc., a Nevada corporation	100% Alamo Group Inc.
	 	 
	Alamo Group Canada Inc., a New Brunswick corporation	100% Alamo Group Inc.
	 	 
	   Schulte Industries Ltd., a New Brunswick corporation	100% AG Canada
	 	 
	Alamo Group (USA) Inc, a Delaware corporation)	100% Alamo Group Inc.
	 	 
	   Alamo Group (KS) Inc., a Kansas corporation	100% Alamo Group USA
	 	 
	   Alamo Group Holdings, L.L.C., a	 
	   Delaware limited liability company	100% Alamo Group USA
	 	 
	   ALG Holdings, L.LC., a Delaware	 
	   limited liability company	100% Alamo Group USA
	 	 
	   Alamo Group (SMC) Inc., a Nevada corporation	100% Alamo Group USA
	 	 
	   Alamo Sales Corp., a Delaware corporation	100% Alamo Group USA
	 	 
	      Electronic Parts Counter Inc., a Nevada	 
	      corporation	100% Alamo Sales Corp.
	 	 
	   Tiger Corporation formerly Alamo Group (SD) Inc.,	 
	   a Nevada corporation	100% Alamo Group USA
	 	 
	   M&W Gear Company, a Delaware corporation	100% Alamo Group USA
	 	 
	   Schwarze Industries, Inc., an Alabama corporation	100% Alamo Group USA
	 	 
	      Schwarze Industries Australia PTY LTD	100% Scharze Industries, Inc.
	 	 
	   Schulte (USA) Inc., a Florida corporation	100% Alamo Group USA
	 	 
	Herschel-Adams Inc., a Nevada corporation	100% Alamo Group Inc.
	 	 
	   Alamo Group (IA) Inc. dba Herschel Corporation, a Nevada	 
	   corporation	100% Herschel-Adams, Inc.
	 	 
	   Adams Hard-Facing Company, Inc (formerly Alamo Group	 
	   OK Inc.), an Oklahoma corporation	100% Herschel-Adams, Inc.
	 	 
	      Adams Sales Corp (formerly Adams-Hard	 
	      Facing, Formerly Alamo Acquisition Corp), a	 
	      Nevada corporation	100% Adams Hard-Facing Company, Inc.
	 	 
	Alamo Group (TX) L.P., a Delaware	 
	limited Partnership	GP–Alamo Group Holdings, L.L.C.
	 	LP–ALG Holdings, L.L.C.

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

73

 

	Alamo Group (EUR) Limited	100% Alamo Group (USA) Inc.
	 	 
	   Bromford Turner Limited	100% Alamo Group (EUR) Limited
	 	 
	      Forge Gorce	100% Bromford Turner Limited
	 	 
	   McConnel Limited	100% Alamo Group (EUR) Limited
	 	 
	   NJM Dabekausen Beheer B.V	100% Alamo Group (EUR) Limited
	 	 
	   Alamo Group (FR) S.A	100% Alamo Group (EUR) Limited
	 	 
	      S.M.A., S.A	Alamo Group (FR) S.A.
	 	 
	      S.C.I. Industrielle	Alamo Group (FR) S.A.
	 	 
	      Bectrac S.A	Alamo Group (FR) S.A.
	 	 
	   Alamo Group (Tx) L.P. (Delaware)	1% GP-Alamo Group Holdings LLC,
	 	general partner
	 	 
	 	99% LP-ALG Holdings LLC,
	 	limited partner
	 	 
	   Alamo Group Management LP (Delaware)	1% GP-Alamo Group Holdings LLC,
	 	general partner
	 	 
	 	99% LP-ALG Personnel Management LLC
	 	limited partner
	 	 
	   ALG Personnel Management LLC	100% Alamo Group (USA) Inc.
	 	 
	Alamo Group (Oh) Inc. a Delaware corporation	100% Alamo Group (USA) Inc.
	 	 
	   Faucheaux SAS (a French Company)	100% Alamo Group (Oh) Inc.
	 	 
	   Rousseau S.A. (a French company)	100% Alamo Group (Oh) Inc.

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

74

EXHIBIT "H"

Permitted Liens

 

 

		
			Secured Party
	
			 Description of Collateral
	
			Ford
  Motor Credit Corp
	
			Floor Planned Chassis
  purchased from Mid Tenn Ford

	
			MB Credit Corp
	
			Floor Planned Chassis
  purchased from Neely Coble

	
			National Australia Bank (Line
  of Credit and Security Agreement)
	
			All assets except R/E, Bank of
  America Letter of Credit

	
			Australian Guarantee
  Corporation (capital lease)
	
			Sweepers

	
			Toronto Dominion
	
			Accounts Receivable, Inventory

			Alamo Group, Inc. -Guaranty

	
			Southwest Lift, Inc.
	
			Forklifts:

			S/N #1A223712

			S/N #66178

	
			Toyota Motor Credit Corp.
	
			Forklift

 

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

75

EXHIBIT "I"

Legal Opinions

Based upon the
foregoing, it is our opinion that:

1.     Company
is a Delaware corporation duly incorporated, validly existing and in good
standing under the laws of the State of Delaware and has all corporate power
and authority required to own its property and carry on its business as
presently conducted or proposed to be conducted.  Company is duly qualified or
licensed to do business in each jurisdiction where the nature of the business
in which it is engaged makes such qualification or licensing necessary,
including [list states in which Company currently does business].

2.     Company
has the corporate power and requisite authority to execute, deliver and carry
out the terms and provisions of the Loan Documents, and all other documents and
instruments delivered pursuant to the terms of the Loan Documents, and has
taken all corporate action necessary to duly authorize (i) the execution,
delivery and performance of the terms and provisions of the Loan Documents and
(ii) the performance of its obligations under the Loan Documents,
including without limitation, the borrowing and repayment of money by Company
thereunder.

3.     Neither
the execution and delivery by Company of the Loan Documents, nor the
performance by Company of its obligations thereunder, nor compliance by Company
with the terms and provisions thereof will (i) contravene any provision of
law, statute, rule or regulation of the State of Texas (or any political
subdivision thereof) or the United States of America to which Company is subject,
or conflict with, or result in any breach of, any material agreement, mortgage,
indenture, deed of trust or other instrument known to us to which Company or
its properties may be subject, or result in the creation of any mortgage, lien,
pledge or encumbrance in respect of any property of Company (other than liens
in your favor), (ii) contravene any judgment, decree, license, order or
permit known to us to be applicable to Company, or (iii) violate any
provision of the articles of incorporation or bylaws of Company pursuant to
which Company was created and is governed.  To the best of our knowledge, after
reasonable inquiry, no consent, approval, authorization or order of any
governmental or public body or authority, or of any third party, is required in
connection with the execution, delivery and performance by Company of the Loan
Documents or the borrowing and repayment of money by Company thereunder.

4.     The Loan
Documents that Company is required to execute and/or deliver have been duly
executed, presented and delivered by Company and constitute the legal and
binding obligations of Company, enforceable in accordance with their respective
terms.

5.     To the
best of our knowledge, after discussion with the principal executive officers
of Company, Company has paid and discharged all taxes, assessments and
governmental charges or levies imposed upon it or upon its respective income or
profits or upon any property belonging to it.

6.     To the
best of our knowledge, after discussion with the principal executive officers
of Company, there are no actions, suits or proceedings pending or threatened
against Company which, if adversely determined, would have a Material Adverse
Effect (as defined in the Loan Agreement) on the financial condition,
operations, properties, assets or business of Company or on the borrowing
transaction contemplated in the Loan Agreement.

The above
opinions should also be provided for each Obligated Group member or other party
executing any of the Loan Documents.

 

 

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

76

EXHIBIT "J"

COMPLIANCE CERTIFICATE

      Date:                                                                      

Bank of America, N.A.

300 Convent Street

Post Office Box 300

San Antonio, Texas  78291

Attn: Stevens E. Warrick, Senior
Vice President

This
Certificate is delivered to you pursuant to that certain Amended and Restated
Revolving Credit Agreement (the "Loan Agreement"), dated August
25, 2004, by and between Bank of America, as Administrative Agent for the
Lenders, the Lenders and Alamo Group Inc. (the "Company") and the
subsidiaries of the Company named therein as members of the "Obligated Group." 
All capitalized terms not otherwise defined shall have the meaning assigned to
them in the Loan Agreement.

As of the date
of this Certificate, the Company certifies to Lenders the following:

I.      COMPLIANCE:

A.    The
representations and warranties stated in Article 6 of the Loan Agreement
continue to be true, except:

[List any exceptions]

B.    The
Company has performed and fulfilled all of its obligations stated in Article 8
of the Loan Agreement, except:

[List any exceptions]

C.    The
Company and each other member of the Obligated Group has kept, observed,
performed and fulfilled each and every covenant and condition stated in Article 9
of the Loan Agreement, except:

[List any exceptions]

D.    There are
no Events of Default or Potential Default in existence as such term is defined
in Article 10 of the Loan Agreement, except:

[List any exceptions]

E.     Neither
the Company nor any Obligated Group member is involved in any material
litigation, except:

[List any exceptions]

F.     The
accompanying balance sheet and operating statement and supporting financial
data have been prepared in accordance with GAAP and are true and correct,
subject to normal year end audit and adjustments.

 

 

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

77

 

 

G.    The Company's computations of the following financial covenants of
the Company contained in the Loan Agreement and as calculated on the attached
Schedule A are as follows, and are correct:

(a)           Minimum Fixed Charge Coverage Ratio

                          
(Section 8.14 - minimum of 1.25 to 1.0):                                            
               
   
to                       

(b)           Minimum Consolidated Tangible Net Worth

                          
(Section 8.15 - minimum of

                           $_____________, subject to annual

                          
adjustment):                                                                                      
$                                             

(c)           Maximum Leverage Ratio

                          
(Section 8.16 - maximum of

                          
3.25 to 1.0:                                                                                        
               
   
to                       

(d)          
Minimum
Asset Coverage Ratio

                          
(Section 8.18 - minimum of 3.00 to 1.0):                                            
               
 
  to                       

           
(e)           Maximum
Capital Stock Repurchases

                          
(Section
9.04 - maximum of $20,000,000

                           aggregate
during the term of the Loan Agreement )                             $                                             

            (f)           
Maximum
Capital Expenditures

                           
(Section
9.12 - maximum of $10,000,000

                            aggregate
during any fiscal year )                                                       $                                             
               

Very truly yours,

ALAMO GROUP INC.

By:                                                                                                                    

Printed Name:                                                                                      

Title:                                                                                                      

 

 

 

 

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

78

SCHEDULE A TO
COMPLIANCE CERTIFICATE

(for the period
ending ___________________________)

		
			Covenant
	
			 

			At End of Subject Period

			
	
			
			1.       Fixed Charge Coverage Ratio
			
			
		
	
			(a)     Net Income

				
			$                    
			
			
	
	
			(b)     Income from discontinued operations or
  extraordinary items
	
			$                    
			
			
	
	
			(c)     Losses from discontinued operations or
  extraordinary items
	
			$                    
			
			
	
	
			(d)     Gains from sales of assets

				
			$                    
			
			
	
	
			(e)     Losses from sales of assets

				
			$                    
			
			
	
	
			(f)      Income tax expense

				
			$                    
			
			
	
	
			(g)     Interest expense

				
			$                    
			
			
	
	
			(h)     Depreciation, depletion, amortization, and
  non-cash charges
	
			$                    
			
			
	
	
			(i)      Operating Cash Flow - Line 1(a),
			minus Line
  1(b), plus Line 1(c), minus Line 1(d), plus Line 1(e), plus
  			Line 1(f), plus Line 1(g), plus Line 1(h)
		
			$                    
			
			

	
			(j)      Lease and rent expense

				
			$                    
			
			
	
	
			(k)     Maintenance Capital Expenditures

				
			$                    
			
			
	
	
			(l)      Cash Taxes

				
			$                    
			
			
	
	
			(m)    Dividends paid in cash

				
			$                    
			
			
	
	
			(n)     Line 1(i),
			plus Line 1(j), minus
  Line 1(k), minus Line 1(l), minus Line 1(m)
		
			$                    
			
			

	
			(o)     Interest Expense

				
			$                    
			
			
	
	
			(p)     Principal Payments on Indebtedness for
  Borrowed Money (excluding the Obligation)
	
			$                    
			
			
	
	
			(q)     Lease and rent expense

				
			$                    
			
			
	
	
			(r)      Line 1(o),
			plus Line 1(p), plus
  Line 1(q)
		
			$                    
			
			

	
			(s)     Fixed Charge Coverage Ratio - ratio of Line
  1(n) to Line 1(r)
		
			______ to ______

	
			(l)      Minimum Ratio (per
			§8.14)
		
			1.25 to 1.00

	
			
			2.       Consolidated Tangible Net Worth
			
			
		
	
			(a)      Initial minimum

				
			$109,500,000
	
	
			(b)      Net Income (as reported on the audited financials
  for the immediately preceding fiscal year) times 50%
	
			$                           
			
			
	
	
			(c)      Net proceeds of Equity Issuances

				
			$                           
			
			
	
	
			(d)      Line 2(a),
			plus Line 2(b), plus
  Line 2(c)
		
			$                           
			
			

	
			(e)      Actual Consolidated Tangible Net Worth -
  must be greater than Line 2(d)
		
			$                           
			
			

 

Exhibit Q

79

 

		
			 
			3.       Leverage Ratio
			
			
		
	
			(a)      Indebtedness for Borrowed Money

				
			$                    
			
				
	
			(b)      Capital leases

				
			$                    
			
				
	
			(c)      Guaranties of Indebtedness for Borrowed
  Money and capital leases
	
			$                    
			
				
	
			(d)      Consolidated Funded Debt - Line 3(a),
			plus
  Line 3(b), plus Line 3(c)
		
			$                    
			
			

	
			(e)      Net Income

				
			$                    
			
				
	
			(f)      Income from discontinued operations or
  extraordinary items
	
			$                    
			
				
	
			(g)     Losses from discontinued operations or
  extraordinary items
	
			$                    
			
				
	
			(h)     Gains from sales of assets

				
			$                    
			
				
	
			(i)       Losses from sales of assets

				
			$                    
			
				
	
			(j)       Income tax expense

				
			$                    
			
				
	
			(k)      Interest expense

				
			$                    
			
				
	
			(l)       Depreciation, depletion, amortization, and
  non-cash charges
	
			$                    
			
				
	
			(m)     Operating Cash Flow - Line 1(e),
			minus Line
  1(f), plus Line 1(g), minus Line 1(h), plus Line 1(i), plus
  			Line 1(j), plus Line 1(k), plus Line 1(l)
		
			$                    
			
			

	
			(n)      Leverage Ratio - ratio of Line 3(d) to
  Line 3(m)
		
			______ to _____

	
			(o)      Maximum Ratio

					
			3.25 to 1.00

	
			
			4.       Asset Coverage Ratio
			
			
		
	
			(a)      Cash Equivalent Investments

				
			$                    
			
				
	
			(b)      Accounts Receivable

				
			$                    
			
				
	
			(c)      Inventory

				
			$                    
			
				
	
			(d)      Net PP&E

				
			$                    
			
				
	
			 (e)      Line 4(a),
			plus Line 4(b), plus
  Line 4(c),                     
			plus Line 4(d)
		
			$                    
			
			
	
			(f)       Indebtedness for Borrowed Money

				
			$                    
			
				
	
			(g)      Capital leases

				
			$                    
			
				
	
			(h)      Guaranties of Indebtedness for Borrowed Money
  and capital leases
	
			$                    
			
				
	
			(i)        Consolidated Funded Debt - Line 4(f),
			plus
  Line 4(g), plus Line 4(h)
		
			$                    
			
			

	
			(j)       Asset Coverage Ratio - ratio of Line 4(e) to
  Line 4(i)
		
			______ to _____

	
			(l)       Minimum Ratio

					
			3.00 to 1.00

Exhibit Q

80

 

		
			
			5.       Maximum Capital Expenditures
			
			
		
	
			(a)      Actual

					
			$                           
			
			
	
			(b)      Maximum Amount
			
			
		
			$10,000,000
	
			
			6.       Maximum Capital Stock Repurchases
			
			
		
	
			(a)      Actual

					
			$                           
			
			
	
			(b)      Maximum Amount
			
			
		
			$20,000,000

 

 

 

Exhibit Q

81

EXHIBIT "K"

Pending Asset Sales

 

		
			Name
	
			Assets to be Sold
	
			"Estimated Sales Price"

			
	
			Adams-Hard Facing Company,
  Inc.
		
	
			Guymon, OK
	
			Equipment and Real Estate
	
			$500,000.00

 

 

 

 

 

 

 

Exhibit Q

82

EXHIBIT "L"

ASSIGNMENT AND ASSUMPTION

This Assignment and Assumption (this "Assignment
and Assumption") is dated as of the Effective Date set forth below and is
entered into by and between [Insert name of Assignor] (the "Assignor")
and [Insert name of Assignee] (the "Assignee"). 
Capitalized terms used but not defined herein shall have the meanings given to
them in the Credit Agreement identified below (the "Credit Agreement"),
receipt of a copy of which is hereby acknowledged by the Assignee.  The
Standard Terms and Conditions set forth in Annex 1 attached hereto are
hereby agreed to and incorporated herein by reference and made a part of this
Assignment and Assumption as if set forth herein in full.

For an agreed consideration, the Assignor hereby
irrevocably sells and assigns to the Assignee, and the Assignee hereby
irrevocably purchases and assumes from the Assignor, subject to and in
accordance with the Standard Terms and Conditions and the Credit Agreement, as
of the Effective Date inserted by Administrative Agent as contemplated below
(i) all of the Assignor's rights and obligations as a Lender under the Credit
Agreement and any other documents or instruments delivered pursuant thereto to
the extent related to the amount and percentage interest identified below of
all of such outstanding rights and obligations of the Assignor under the
respective facilities identified below (including, without limitation, the
Letters of Credit and the Swing Line Loans included in such facilities) and
(ii) to the extent permitted to be assigned under applicable law, all claims,
suits, causes of action and any other right of the Assignor (in its capacity as
a Lender) against any Person, whether known or unknown, arising under or in
connection with the Credit Agreement, any other documents or instruments
delivered pursuant thereto or the loan transactions governed thereby or in any
way based on or related to any of the foregoing, including, but not limited to,
contract claims, tort claims, malpractice claims, statutory claims and all
other claims at law or in equity related to the rights and obligations sold and
assigned pursuant to clause (i) above (the rights and obligations sold and
assigned pursuant to clauses (i) and (ii) above being referred to herein
collectively as, the "Assigned Interest").  Such sale and
assignment is without recourse to the Assignor and, except as expressly
provided in this Assignment and Assumption, without representation or warranty
by the Assignor.

1.        
Assignor:          ______________________________

2.         Assignee:          ______________________________
[and is an Affiliate/Approved Fund of [identify Lender]]

3.        
Borrower:         Alamo Group Inc., a Delaware
corporation

4.         Administrative
Agent: Bank of America, N.A., as the administrative agent under the Credit
Agreement

5.        Credit
Agreement:         Amended and Restated Revolving Credit Agreement, dated
as of August 25, 2004 among Borrower, the
Guarantors defined therein, the Lenders from time to time party thereto, and Bank
of America, N.A., as Administrative Agent

Exhibit Q

83

6.        
Assigned Interest:

	
		Facility Assigned
	
		Aggregate

		Amount of

		Commitment

		for all Lenders
	
		Amount of

		Commitment

		Assigned
	
		Percentage

		Assigned of

		Commitment[1]
	
		CUSIP Number

					
	
		Revolving Credit Commitment

			
		$________________
	
		$________________
	
		______________%
	
	
		_____________
	
		$________________
	
		$________________
	
		______________%
	
	
		_____________
	
		$________________
	
		$________________
	
		______________%
	

[7.       
Trade Date:      __________________][2]

Effective Date: __________________, 20__ [TO BE
INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF
RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The
terms set forth in this Assignment and Assumption are hereby agreed to:

ASSIGNOR

[NAME OF ASSIGNOR]

By: _____________________________

      Title: ________________________

ASSIGNEE

[NAME OF ASSIGNEE]

By: _____________________________

      Title: ________________________

Consented to and Accepted:

BANK OF AMERICA, N.A., as

 Administrative Agent

By: _________________________________

      Title: ____________________________

 

 

 

[1] Set forth, to at least 9 decimals, as a percentage of
the Commitment of all Lenders thereunder.

[2] To be completed if the Assignor and the Assignee
intend that the minimum assignment amount is to be determined as of the Trade
Date.

Exhibit Q

84

ANNEX
1 TO ASSIGNMENT AND ASSUMPTION

STANDARD
TERMS AND CONDITIONS FOR 

ASSIGNMENT
AND ASSUMPTION

1.            
Representations
and Warranties.

1.1.         
Assignor. 
The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free
and clear of any lien, encumbrance or other adverse claim and (iii) it has full
power and authority, and has taken all action necessary, to execute and deliver
this Assignment and Assumption and to consummate the transactions contemplated
hereby; and (b) assumes no responsibility with respect to (i) any statements,
warranties or representations made in or in connection with the Credit
Agreement or any other Loan Document, (ii) the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Loan Documents or any
collateral thereunder, (iii) the financial condition of the Borrower, any of
its Subsidiaries or Affiliates or any other Person obligated in respect of any
Loan Document or (iv) the performance or observance by the Borrower, any of its
Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document.

1.2.         
Assignee. 
The Assignee (a) represents and warrants that (i) it has full power and
authority, and has taken all action necessary, to execute and deliver this
Assignment and Assumption and to consummate the transactions contemplated
hereby and to become a Lender under the Credit Agreement, (ii) it meets all
requirements of an Eligible Assignee under the Credit Agreement (subject to
receipt of such consents as may be required under the Credit Agreement), (iii)
from and after the Effective Date, it shall be bound by the provisions of the
Credit Agreement as a Lender thereunder and, to the extent of the Assigned
Interest, shall have the obligations of a Lender thereunder, (iv) it has
received a copy of the Credit Agreement, together with copies of the most
recent financial statements delivered pursuant to Section 8.01 thereof,
as applicable, and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Assumption and to purchase the Assigned Interest on the basis of
which it has made such analysis and decision independently and without reliance
on Administrative Agent or any other Lender, and (v) if it is a Foreign Lender,
attached hereto is any documentation required to be delivered by it pursuant to
the terms of the Credit Agreement, duly completed and executed by the Assignee;
and (b) agrees that (i) it will, independently and without reliance on
Administrative Agent, the Assignor or any other Lender, and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Loan
Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Loan Documents are required to be
performed by it as a Lender.

2.            Payments. 
From and after the Effective Date, Administrative Agent shall make all payments
in respect of the Assigned Interest (including payments of principal, interest,
fees and other amounts) to the Assignor for amounts which have accrued to but
excluding the Effective Date and to the Assignee for amounts which have accrued
from and after the Effective Date.

3.            
General Provisions. 
This Assignment and Assumption shall be binding upon, and inure to the benefit
of, the parties hereto and their respective successors and assigns.  This
Assignment and Assumption may be executed in any number of counterparts, which
together shall constitute one instrument.  Delivery of an executed counterpart
of a signature page of this Assignment and Assumption by telecopy shall be
effective as delivery of a manually executed counterpart of this Assignment and
Assumption.  This Assignment and Assumption shall be governed by, and construed
in accordance with, the law of the State of Texas.

 

 

 

Exhibit Q

85

Exhibit M

Existing
Indebtedness

 

 

	
		Source
	
		Term
	
		Total Amount Available or Original Amount

			
		Current Amount Outstanding

			
		Description of Collateral

	
		Ford
  Motor Credit Corp
	
		Renewable Annually
	
		$1,000,000
	
		$140,040
	
		Floor Planned Chassis
  purchased from Mid Tenn Ford

	
		MB Credit Corp
	
		Renewable Annually
	
		$3,000,000
	
		$599,946
	
		Floor Planned Chassis
  purchased from Neely Coble

	
		National Australia Bank (Line
  of Credit and Security Agreement)
	
		Renewable Annually
	
		$1,300,000

		(Australian)
	
		$800,000

		(Australian)
	
		All assets except R/E, Bank of
  America Letter of Credit

	
		Australian Guarantee
  Corporation (capital lease)
	
		June, 2004
	
		$500,000

		(Australian)
	
		$200,000

		(Australian)
	
		Sweepers

	
		Toronto Dominion
	
		Renewable Annually
	
		 $3,000,000

 (Canadian)
	
		$1,280,000
	
		Accounts Receivable, Inventory

		Alamo Group, Inc. -Guaranty

	
		Lloyds Bank  

		Overdraft Facility
	
		Renewable

		Annually 
	
		$4,000,000

		(British Pounds)
	
		0
	
		Unsecured

 

 

 

Exhibit Q

86

Exhibit N

List of Existing Guarantors

Alamo Capital Inc., a Nevada corporation 

Alamo Group (IA) Inc., a Nevada corporation 

Alamo Group (KS) Inc., a Kansas corporation 

Alamo Group (SMC) Inc., a Nevada corporation 

Alamo Group (TX) L.P., a Delaware limited partnership  

Alamo Group (USA) Inc., a Delaware corporation 

Alamo Group Holdings, L.L.C., a Delaware limited liability
company 

Alamo Sales Corp., a Delaware corporation 

Herschel-Adams Inc., a Nevada corporation 

M&W Gear Company, a Delaware corporation 

Schulte (USA) Inc., a Florida corporation 

Schwarze Industries, Inc., an Alabama corporation 

Tiger Corporation, a Nevada corporation

Alamo Group Services, Inc., a Delaware corporation

 

Exhibit Q

87

EXHIBIT O

Existing Letters
of Credit

								
							
		
			US Current
			
	
			US Dollar

					
			AUD 
			
		
			Expiry
			

	
			Number

				
			Amount

				
			as of
			
	
			Currency

				
			Equivalent

				
			Beneficiary

				
			Date

			
							
	
			138069

				
			$462,532.00

					
			USD
		
			Zurich
  Insurance Company
	
			9/29/2004

			
	
			3030400

				
			$105,397.50

				
			08/02/04

				
			AUD
	
			$150,000.00

				
			Australian
  Guarantee Corp. Ltd.
	
			9/30/2004

			
	
			3030404

				
			$913,445.00

				
			08/02/04

				
			AUD
	
			$1,300,000.00

				
			National
  Australia Bank Limited
	
			9/30/2004

			
	
			3042895

				
			$550,000.00

					
			USD
		
			United
  Stated Fire Insurance
	
			9/30/2004

			
	
			3042899

				
			$403,043.00

					
			USD
		
			Liberty
  Mutual Insurance Company
	
			9/30/2004

			
	
			3042897

				
			$250,000.00

					
			USD
		
			San Diego
  National Bank
	
			4/27/2005

			

 

 

Exhibit Q

88

EXHIBIT P

Litigation

None.

 

 

 

 

 

Exhibit Q

89

EXHIBIT Q

Permitted
Acquisition Certificate

Bank of America, N.A.

300 Convent Street

Post Office Box 300

San Antonio, Texas  78291

Attn: Stevens E. Warrick, Senior Vice President

This Certificate is delivered to
you pursuant to (a) that certain Amended and Restated Revolving Credit
Agreement (the "Loan Agreement"), dated August 25, 2004, by and
between Bank of America, as Administrative Agent for the Lenders, the Lenders,
and Alamo Group Inc. (the "Company") and the subsidiaries of the
Company named therein as members of the "Obligated Group", and (b) the
proposed Acquisition of [the assets of] [the capital stock of] ____________, a
_____________ by _________________.  All capitalized terms not otherwise
defined shall have the meaning assigned to them in the Loan Agreement.

As of the date of this
Certificate, the Company certifies to Administrative Agent and Lenders the
following:

1.          The consideration
paid for the proposed Acquisition is $____________               (must be less
than $20,000,000).

2.          The consideration
paid for all Acquisitions during the current fiscal year is $____________             (must
be less than $30,000,000).

3           After giving
effect to the Acquisition:

(a)           All
representations and warranties set forth in the Loan Documents continue to be
true and correct in all material respects immediately prior to and after giving
effect to the Acquisition and the transactions contemplated thereby.

(b)           No
Event of Default or Potential Default shall exist or occur as a result of, and
after giving effect to, the Acquisition.

(c)           If
the total consideration for the Acquisition is equal to or greater than
$5,000,000, the Company has attached as Exhibit A, pro forma financial
statements of the Company and its Consolidated Subsidiaries demonstrating
compliance with the covenants set forth in Sections 8.14, 8.15, 8.16,
and 8.18 of the Loan Agreement (as if the business, assets or Person
acquired had been acquired since the first (1st) day of the period for which
such pro forma financial statements are delivered and had been managed and
conducted in accordance with the Company's standard business practices) for the
prior four (4) fiscal quarters of the Company and its Consolidated
Subsidiaries.

ALAMO GROUP INC.

By:         
                                                                                                               

Name:                                                                                                    

Title:                                                                                                      

 

Exhibit Q

90

Exhibit A to PERMITTED Acquisition Certificate

See attached pro
forma financials.

 

 

 

 

 

 

 

 

Exhibit Q

91

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