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Exhibit 10.4
  Name of Executive    
    

 
 

COMFORT SYSTEMS USA, INC.
  2006 Equity Incentive Plan
  Restricted Stock Award Agreement    
    

Comfort
Systems USA, Inc.

777 Post Oak Blvd, Suite 500

Houston, Texas 77056 

Ladies
and Gentlemen: 

        The
undersigned (i) acknowledges that he or she has received an award (the "Award") of restricted stock from Comfort Systems USA, Inc., a Delaware corporation (the
"Company") under the 2006 Equity Incentive Plan (the "Plan"), subject to the terms set forth below and in the Plan; (ii) further acknowledges receipt of a copy of the Plan as in effect on the
date hereof; and (iii) agrees with the Company as follows: 

	1.
	Effective Date.    This Agreement shall take effect as of [DATE], which is the date of grant of the
Award.

	2.
	Shares Subject to Award.    The Award consists of [NUMBER] shares (the "Shares") of common stock of
the Company ("Stock"). The undersigned's rights to the Shares are subject to the restrictions described in this Agreement and the Plan (which is incorporated herein by reference with the same effect
as if set forth herein in full) in addition to such other restrictions, if any, as may be imposed by law.

	3.
	Meaning of Certain Terms.    Except as otherwise expressly provided, all terms used herein shall have the same meaning as in
the Plan. The term "vest" as used herein with respect to any Share means the lapsing of the restrictions described herein and in the Plan with respect to such Share.

	4.
	Nontransferability of Shares.    The Shares acquired by the undersigned pursuant to this Agreement shall not be sold,
transferred, pledged, assigned or otherwise encumbered or disposed of except as provided below and in the Plan.

	5.
	Forfeiture Risk.    Except as provided in Section 7(b) of this Agreement, if the undersigned ceases to be employed by
the Company and its subsidiaries for any reason, including death, any then unvested Shares acquired by the undersigned hereunder shall be immediately forfeited. The undersigned hereby
(i) appoints the Company as the attorney-in-fact of the undersigned to take such actions as may be necessary or appropriate to effectuate a transfer of the record
ownership of any such shares that are unvested and forfeited hereunder, (ii) agrees to deliver to the Company, as a precondition to the issuance of any certificate or certificates with respect
to unvested Shares hereunder, one or more stock powers, endorsed in blank, with respect to such Shares, and (iii) agrees to sign such other powers and take such other actions as the Company may
reasonably request to accomplish the transfer or forfeiture of any unvested Shares that are forfeited hereunder.

	6.
	Retention of Certificates.    Any certificates representing unvested Shares shall be held by the Company. The undersigned
agrees that the Company may give stop transfer instructions to the depository to ensure compliance with the provisions hereof.

	7.
	Vesting of Shares.    The shares acquired hereunder shall vest in accordance with the provisions of this Paragraph 7
and applicable provisions of the Plan, as follows:

	(a)
	(i)    If
the Committee determines that, for the prior 12-month period preceding the first scheduled vesting date, the Company did not have positive earnings
from its continuing operations, all as determined and reported in accordance with generally accepted accounting 

principles
in the Company's regularly-prepared financial statements, excluding the following non-cash items: (A) good will impairment; (B) write-off of debt
costs; (C) restructuring charges; and (D) any cumulative effect of a change in accounting principles, Employee shall immediately and irrevocably forfeit all of the Shares. 

	(ii)
	If
the Committee determines that for any of the 12-month periods prior to the date that such restricted shares are scheduled to vest under
Section 7(b) herein the Company did not achieve 60% of the average 3-year trailing EBITDA or EPS target (whichever the case may be) as set by the Compensation Committee under the
average of the Company's prior 3-year Senior Management Incentive Programs, then Employee shall immediately and irrevocably forfeit all of the shares scheduled to vest.

	(iii)
	If
in the 12-month period preceding a scheduled vesting date under Section 7(b), the Company achieved between 60% to 80% of the average
3-year trailing EBITDA or EPS target (whichever the case may be) as set by the Compensation Committee under the average of the Company's prior 3-year Senior Management
Incentive Programs, then Employee shall immediately and irrevocably forfeit shares proportionately based on a scale where 60% or less equals 0% of shares retained by Employee and 80% or greater equals
100% of shares retained by Employee; and all shares not forfeited pursuant to the aforementioned scale shall vest on such vesting date.

	(b)
	Subject
to Section 7(a) above and Sections 7(c) and 7(d) below, and provided that the undersigned is then, and since the date of grant has continuously been employed by
the Company or its subsidiaries, then the Shares shall vest as follows:

	on
	[DATE];
 [1/3 of NUMBER]

	on
	[DATE];
 [1/3 of NUMBER]; and

	on
	[DATE]
 [1/3 of NUMBER]. 

provided, however, that, not withstanding anything to the contrary in Section 7(a) above or this
Section 7(b), any unvested Shares that have not earlier been forfeited shall vest immediately in the event of (i) a "Change in Control" as defined in the undersigned's change in control
agreement, if any, with the Company, or (ii) if the undersigned and Company have not entered into a change in control agreement, in the event the Company experiences a "Change in Control" as
defined herein. 

	(c)
	Notwithstanding
anything to the contrary in Section 7(b) above, if the undersigned retires from the Company at a time when the sum of his or her age in whole years and his or
her years of service with the Company (as determined in a manner consistent with the method used for purposes of determining vesting under the Comfort Systems USA, Inc. 401(k) Plan) is at least
75, the undersigned shall be deemed to satisfy the continuous employment condition set forth in Section 7(b) on each vesting date following retirement.

	(d)
	Notwithstanding
anything to the contrary in Sections 7(a), 7(b), or 7(c) above, the Committee may, in its sole discretion, reduce the number of shares vesting on any date
pursuant to this Award, and may cause any unvested shares under this Award to be forfeited, based on the individual performance of the undersigned as compared with specific individual goals, which may
be based on objective or nonobjective factors related to the performance of the undersigned.

	8.
	Legend.    Any certificates representing unvested Shares shall be held by the Company, and any such certificate shall contain
a legend substantially in the following form: 

THE
TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING FORFEITURE) OF THE COMPANY'S 2006 EQUITY INCENTIVE PLAN AND A
RESTRICTED STOCK AWARD AGREEMENT ENTERED INTO 

BETWEEN
THE REGISTERED OWNER AND COMFORT SYSTEMS USA, INC. COPIES OF SUCH PLAN AND AGREEMENT ARE ON FILE IN THE OFFICES OF COMFORT SYSTEMS USA, INC. 

As
soon as practicable following the vesting of any such Shares the Company shall cause a certificate or certificates covering such Shares to be delivered to the undersigned. 

	9.
	Dividends, etc.    The undersigned shall be entitled to (i) receive any and all dividends or other distributions paid
with respect to those Shares of which he is the record owner on the record date for such dividend or other distribution, and (ii) vote any Shares of which he is the record owner on the record
date for such vote; provided, however, that any property (other than cash) distributed with respect to a share of Stock (the "associated share")
acquired hereunder, including without limitation a distribution of Stock by reason of a stock dividend, stock split or otherwise, or a distribution of other securities with respect to an associated
share, shall be subject to the restrictions of this Agreement in the same manner and for so long as the associated share remains subject to such restrictions, and shall be promptly forfeited to the
Company if and when the associated share is so forfeited; and further provided, that the Administrator may require that any cash distribution with
respect to the Shares other than a normal cash dividend be placed in escrow or otherwise made subject to such restrictions as the Administrator deems appropriate to carry out the intent of the Plan.
References in this Agreement to the Shares shall refer, mutatis mutandis, to any such restricted amounts.

	10.
	Sale of Vested Shares.    The undersigned understands that he will be free to sell any Share once it has vested, subject to
(i) satisfaction of any applicable tax withholding requirements with respect to the vesting or transfer of such Share; (ii) the completion of any administrative steps (for example, but
without limitation, the transfer of certificates) that the Company may reasonably impose; and (iii) applicable company policies and the requirements of federal and state securities laws.

	11.
	Certain Tax Matters.    The undersigned expressly acknowledges the following:

	a.
	The
undersigned has been advised to confer promptly with a professional tax advisor to consider whether the undersigned should make a so-called "83(b) election" with
respect to the Shares. Any such election, to be effective, must be made in accordance with applicable regulations and within thirty (30) days following the date of this award. The Company has
made no recommendation to the undersigned with respect to the advisability of making such an election.

	b.
	The
award or vesting of the Shares acquired hereunder, and the payment of dividends with respect to such shares, may give rise to "wages" subject to withholding. The undersigned
expressly acknowledges and agrees that his rights hereunder are subject to his paying to the Company in cash (or by such other means as may be acceptable to the Company in its discretion, including,
if the Committee so determines, by the delivery of previously acquired Stock or shares of Stock acquired hereunder or by the withholding of amounts from any payment hereunder) all taxes required to be
withheld in connection with such award, vesting or payment.

	12.
	Definition: Change in Control.    For the purpose of Section 7(b)(ii) herein, a "Change in Control" shall be deemed to
have occurred if:

	a.
	any
person (including any "person" within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended, and more than one person acting as a
group), other than the Company, or an employee benefit plan of the Company, or any entity controlled by either, acquiring directly or indirectly the beneficial ownership of any voting security of the
Company and if immediately after such acquisition such person is, directly or indirectly, the beneficial owner of voting securities representing 50% or more of the total voting power of all of the
then-outstanding voting securities of the Company, provided that if any one person, or more than one person acting as a group, owned more than 50% of the total fair market value or total
voting power of Company stock as of the date of this 

Agreement,
the acquisition of additional stock by the same person or persons shall not be deemed to be a Change in Control; 

	b.
	the
date a majority of the following individuals are replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the
members of the Company's Board of Directors before the date of the appointment or election: (i) the individuals who, as of the date hereof, constitute the Board of Directors of the Company (the
"Original Directors"); (ii) the individuals who thereafter are elected to the Board of Directors of the Company and whose election, or nomination for election, to the Board of Directors of the
Company was approved by a vote of at least two-thirds of the Original Directors then still in office (such directors becoming "Additional Original Directors" immediately following their
election); and (iii) the individuals who are elected to the Board of Directors of the Company and whose election, or nomination for election, to the Board of Directors of the Company was
approved by a vote of at least two-thirds of the Original Directors and Additional Original Directors then still in office (such directors also becoming "Additional Original Directors"
immediately following their election); or

	c.
	any
one person, or more than one person acting as a group, acquiring (or who has acquired during the 12-month period ending on the date of the most recent acquisition by
such person or persons) assets from the Company that have a total gross fair market value equal to or more than 50% of the total gross fair market value of the assets of the Company immediately before
such acquisition or acquisitions..

	13.
	Non-Competition Agreement.    The undersigned will not, during the period of employment by or with the Company,
and for a period of twelve (12) months immediately following the termination of employment, for any reason whatsoever, directly or indirectly, on his or her own behalf or on behalf of or in
conjunction with any other person, company, partnership, corporation or business of whatever nature:

	a.
	engage,
as an officer, director, shareholder, owner, partner, joint venturer, or in a managerial capacity, whether as an employee, independent contractor, consultant or advisor, or as
a sales representative, or make guarantee loans or invest, in or for any business engaged in the business of mechanical contracting services, including heating, ventilation and air conditioning,
plumbing, fire protection, piping and electrical and related services ("Services") in competition with the Company or any of its affiliates within seventy-five (75) miles of where
the Company or any affiliated operation or subsidiary conducts business if within the preceding two (2) years the undersigned has had responsibility for, or material input or participation in,
the management or operation of such other operation or subsidiary;

	b.
	call
upon any person who is, at that time, an employee of the Company or any of its affiliates in a technical, managerial or sales capacity for the purpose or with the intent of
enticing such employee away from or out of the employ of the Company or any affiliate;

	c.
	call
upon any person or entity which is at that time, or which has been within two (2) years prior to that time, a customer of the Company or any affiliate for the purpose of
soliciting or selling Services; or

	d.
	call
upon any prospective acquisition candidate, on the undersigned's own behalf or on behalf of any competitor, which acquisition candidate either was called upon the undersigned on
behalf of the Company or any affiliate or was the subject of an acquisition analysis made by the undersigned on behalf of the Company or any affiliate for the purpose of acquiring such acquisition
candidate. 

Notwithstanding
the above, the foregoing agreements and covenants shall not be deemed to prohibit the undersigned from acquiring as an investment not more than one percent (1%) of the capital stock of
a competing business whose stock is traded on a national securities exchange or on an over-the-counter or similar market. It is specifically agreed that the period during which
the agreements and covenants of the undersigned made in this Section 13 shall be effective shall be computed by excluding from such computation any time during which the undersigned is in
violation of any provision of this Section 13. 

	14.
	Remedies in the Event of Breach.    If the Company determines that the undersigned is not in compliance with the agreements
and covenants set forth in Section 13 above, and such non-compliance has not been authorized in advance in a specific written waiver from the Company, the Committee may, without
limiting other remedies that may be available to the Company, cause all or any portion of the Award to be forfeited, whether or not previously vested, and may require the undersigned to remit or
deliver to the Company the amount of any consideration received by the undersigned upon the sale of any Shares delivered under the Award. The undersigned acknowledges and agrees that the calculation
of damages from a breach of the foregoing agreements and covenants would be difficult to calculate accurately and that the remedies provided for herein are reasonable and not a penalty. The
undersigned further agrees not to challenge the reasonableness of this provision even if the Company rescinds or withholds the delivery of Shares hereunder or withholds any amount otherwise payable to
the undersigned as an offset to effectuate the foregoing. 

	

 	
 	

Very truly yours,
	

 	
 	

 [Name of Executive]

	 

	The foregoing Restricted Stock

Award Agreement is hereby accepted:	 	 	 
	
COMFORT SYSTEMS USA, INC.	
 	

 	

 
	

By:	

    
 Signature	

 
	

 	

 Trent McKenna	

 
	Its:	General Counsel and Secretary	 	 	 

QuickLinks

Exhibit 10.4 Name of Executive

COMFORT SYSTEMS USA, INC. 2006 Equity Incentive Plan Restricted Stock Award AgreementExhibit 4.1

 

 

$100,000,000 SENIOR
SECURED 

LETTER OF CREDIT / REVOLVING CREDIT FACILITIES

CREDIT AGREEMENT

 

among

 

MAGELLAN HEALTH SERVICES,
INC.,

 

VARIOUS LENDERS

 

and

 

DEUTSCHE BANK AG,

as ADMINISTRATIVE AGENT

 

 

Dated as of April 30,
2008

 

 

CITIBANK, N.A.,

as Syndication Agent,

 

and

 

DEUTSCHE BANK SECURITIES
INC. and

CITIGROUP GLOBAL MARKETS INC.,

as JOINT LEAD ARRANGERS and

BOOK RUNNING MANAGERS

 

 

 

Table of
Contents

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  SECTION 1.     Amount and
  Terms of Credit

  	
  1

  
	
   

  	
   

  
	
  1.01 The
  Commitments

  	
  1

  
	
  1.02
  Minimum Amount of Each Borrowing

  	
  3

  
	
  1.03
  Notice of Borrowing

  	
  3

  
	
  1.04
  Disbursement of Funds

  	
  4

  
	
  1.05
  Notes

  	
  5

  
	
  1.06
  Conversions

  	
  6

  
	
  1.07 Pro  Rata Borrowings

  	
  6

  
	
  1.08
  Interest

  	
  6

  
	
  1.09
  Interest Periods for Eurodollar Loans

  	
  7

  
	
  1.10
  Increased Costs, Illegality, etc.

  	
  8

  
	
  1.11
  Compensation

  	
  10

  
	
  1.12
  Change of Lending Office

  	
  10

  
	
  1.13
  Replacement of Lenders

  	
  11

  
	
   

  	
   

  
	
  SECTION 2.     Letters of
  Credit

  	
  12

  
	
   

  	
   

  
	
  2.01 Letters of Credit

  	
  12

  
	
  2.02
  Maximum Letter of Credit Outstandings; Final Maturities; etc.

  	
  13

  
	
  2.03
  Letter of Credit Requests; Minimum Stated Amount

  	
  13

  
	
  2.04
  Letter of Credit Participations

  	
  14

  
	
  2.05
  Agreement to Repay Letter of Credit Drawings

  	
  16

  
	
  2.06
  Increased Costs

  	
  16

  
	
   

  	
   

  
	
  SECTION 3.     Commitment
  Commission; Fees; Reductions of Commitment

  	
  17

  
	
   

  	
   

  
	
  3.01 Fees

  	
  17

  
	
  3.02
  Voluntary Termination of Unutilized Commitments

  	
  18

  
	
  3.03
  Mandatory Reduction of Commitments

  	
  19

  
	
   

  	
   

  
	
  SECTION 4.     Prepayments;
  Payments; Taxes

  	
  20

  
	
   

  	
   

  
	
  4.01
  Voluntary Prepayments

  	
  20

  
	
  4.02
  Mandatory Repayments

  	
  21

  
	
  4.03
  Method and Place of Payment

  	
  22

  
	
  4.04 Net
  Payments

  	
  23

  
	
   

  	
   

  
	
  SECTION 5.     Conditions
  Precedent to the Effective Date

  	
  26

  
	
   

  	
   

  
	
  5.01
  Execution of Agreement; Notes

  	
  26

  
	
  5.02
  Officer’s Certificate

  	
  26

  
	
  5.03
  Opinions of Counsel

  	
  26

  
	
  5.04
  Corporate Documents; Proceedings; etc.

  	
  26

  
	
  5.05
  Refinancing

  	
  27

  
	
  5.06
  Adverse Change, Approvals

  	
  27

  
	
  5.07
  Litigation

  	
  27

  
	
  5.08
  Pledge Agreement

  	
  27

  

 

i

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  5.09
  Subsidiaries Guaranties

  	
  28

  
	
  5.10
  Security Agreement

  	
  28

  
	
  5.11
  Financial Statements; Projections

  	
  28

  
	
  5.12
  Solvency Certificate; Insurance Certificates

  	
  28

  
	
  5.13
  Shareholders’ Agreements; Management Agreements; Tax Sharing Agreements; and
  Existing Indebtedness Agreements

  	
  28

  
	
  5.14
  Fees, etc.

  	
  29

  
	
   

  	
   

  
	
  SECTION 6.     Conditions
  Precedent to All Credit Events

  	
  29

  
	
   

  	
   

  
	
  6.01 No
  Default; Representations and Warranties

  	
  29

  
	
  6.02
  Notice of Borrowing; Letter of Credit Request

  	
  29

  
	
  6.03
  Corporate Ratings Condition

  	
  30

  
	
   

  	
   

  
	
  SECTION 7.     Representations,
  Warranties and Agreements

  	
  30

  
	
   

  	
   

  
	
  7.01
  Organizational Status

  	
  30

  
	
  7.02
  Power and Authority

  	
  31

  
	
  7.03 No
  Violation

  	
  31

  
	
  7.04
  Approvals

  	
  31

  
	
  7.05
  Financial Statements; Financial Condition; Undisclosed Liabilities;
  Projections; No Material Adverse Effect

  	
  32

  
	
  7.06
  Litigation

  	
  33

  
	
  7.07 True
  and Complete Disclosure

  	
  33

  
	
  7.08 Use
  of Proceeds; Margin Regulations

  	
  33

  
	
  7.09 Tax
  Returns and Payments

  	
  34

  
	
  7.10
  Compliance with ERISA

  	
  34

  
	
  7.11 The
  Security Documents

  	
  35

  
	
  7.12
  Properties

  	
  36

  
	
  7.13
  Capitalization

  	
  36

  
	
  7.14
  Subsidiaries; etc.

  	
  36

  
	
  7.15
  Compliance with Statutes, etc.

  	
  37

  
	
  7.16
  Investment Company Act

  	
  37

  
	
  7.17
  Environmental Matters

  	
  37

  
	
  7.18
  Labor Relations

  	
  38

  
	
  7.19
  Intellectual Property, etc.

  	
  38

  
	
  7.20
  Indebtedness

  	
  38

  
	
  7.21
  Insurance

  	
  38

  
	
  7.22
  Subordination

  	
  38

  
	
  7.23
  Certain Agreements

  	
  39

  
	
   

  	
   

  
	
  SECTION 8.     Affirmative Covenants

  	
  39

  
	
   

  	
   

  
	
  8.01
  Information Covenants

  	
  39

  
	
  8.02
  Books, Records and Inspections; Annual Meetings

  	
  42

  
	
  8.03
  Maintenance of Property; Insurance

  	
  43

  
	
  8.04
  Existence; Franchises

  	
  43

  

 

ii

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  8.05
  Compliance with Statutes, etc.

  	
  43

  
	
  8.06
  Compliance with Environmental Laws

  	
  44

  
	
  8.07
  ERISA

  	
  44

  
	
  8.08 End
  of Fiscal Years; Fiscal Quarters

  	
  46

  
	
  8.09
  Performance of Obligations

  	
  46

  
	
  8.10
  Payment of Taxes

  	
  46

  
	
  8.11 Use
  of Proceeds

  	
  46

  
	
  8.12
  Additional Security; Further Assurances; etc.

  	
  46

  
	
  8.13
  Foreign Subsidiaries Security

  	
  48

  
	
  8.14
  Ownership of Subsidiaries; etc.

  	
  49

  
	
  8.15
  Permitted Acquisitions

  	
  49

  
	
  8.16 Cash
  Management System; etc.

  	
  51

  
	
  8.17
  Margin Regulations

  	
  51

  
	
   

  	
   

  
	
  SECTION 9.      Negative
  Covenants

  	
  51

  
	
   

  	
   

  
	
  9.01
  Liens

  	
  51

  
	
  9.02
  Consolidation, Merger, Purchase or Sale of Assets, etc.

  	
  54

  
	
  9.03
  Dividends

  	
  57

  
	
  9.04
  Indebtedness

  	
  58

  
	
  9.05
  Advances, Investments and Loans

  	
  60

  
	
  9.06
  Transactions with Affiliates

  	
  62

  
	
  9.07
  Changes to Legal Names, Organizational Identification Numbers, Jurisdiction
  or Type or Organization

  	
  62

  
	
  9.08 Consolidated
  Interest Coverage Ratio

  	
  63

  
	
  9.09
  Total Leverage Ratio

  	
  63

  
	
  9.10
  Limitations on Payments of Permitted Subordinated Debt; Modifications of Certificate
  of Incorporation, By-Laws and Certain Other Agreements, etc.

  	
  63

  
	
  9.11
  Limitation on Certain Restrictions on Subsidiaries

  	
  65

  
	
  9.12
  Business, etc.

  	
  65

  
	
  9.13
  Limitation on Creation of Subsidiaries

  	
  65

  
	
  9.14
  Limitation on Issuance of Capital Stock

  	
  66

  
	
   

  	
   

  
	
  SECTION 10.    Events of Default

  	
  66

  
	
   

  	
   

  
	
  10.01
  Payments

  	
  66

  
	
  10.02
  Representations, etc.

  	
  66

  
	
  10.03
  Covenants

  	
  66

  
	
  10.04
  Default Under Other Agreements

  	
  67

  
	
  10.05
  Bankruptcy, etc.

  	
  67

  
	
  10.06
  ERISA

  	
  67

  
	
  10.07
  Security Documents

  	
  68

  
	
  10.08
  Subsidiaries Guaranty

  	
  68

  
	
  10.09
  Judgments

  	
  69

  
	
  10.10
  Change of Control

  	
  69

  

 

iii

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  SECTION 11.    Defined Terms

  	
  69

  
	
   

  	
   

  
	
  SECTION 12.    The Administrative
  Agent

  	
  92

  
	
   

  	
   

  
	
  12.01
  Appointment

  	
  92

  
	
  12.02
  Nature of Duties

  	
  92

  
	
  12.03
  Lack of Reliance on the Administrative Agent

  	
  93

  
	
  12.04
  Certain Rights of the Administrative Agent

  	
  93

  
	
  12.05 Reliance

  	
  93

  
	
  12.06
  Indemnification

  	
  94

  
	
  12.07 The
  Administrative Agent in its Individual Capacity

  	
  94

  
	
  12.08
  Holders

  	
  94

  
	
  12.09
  Resignation by the Administrative Agent

  	
  94

  
	
   

  	
   

  
	
  SECTION 13.    Miscellaneous

  	
  95

  
	
   

  	
   

  
	
  13.01
  Payment of Expenses, etc.

  	
  95

  
	
  13.02
  Right of Setoff

  	
  96

  
	
  13.03
  Notices

  	
  97

  
	
  13.04
  Benefit of Agreement; Assignments; Participations

  	
  97

  
	
  13.05 No
  Waiver; Remedies Cumulative

  	
  99

  
	
  13.06
  Payments Pro Rata

  	
  99

  
	
  13.07
  Calculations; Computations

  	
  100

  
	
  13.08
  GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL

  	
  100

  
	
  13.09
  Counterparts

  	
  102

  
	
  13.10
  Effectiveness

  	
  102

  
	
  13.11
  Headings Descriptive

  	
  102

  
	
  13.12
  Amendment or Waiver; etc.

  	
  102

  
	
  13.13
  Survival

  	
  104

  
	
  13.14
  Domicile of Loans

  	
  104

  
	
  13.15
  Register

  	
  104

  
	
  13.16
  Confidentiality

  	
  104

  

 

SCHEDULES

 

	
  SCHEDULE I

  	
   

  	
  —

  	
   

  	
  Commitments

  
	
  SCHEDULE II

  	
   

  	
  —

  	
   

  	
  Existing Letters
  of Credit

  
	
  SCHEDULE III

  	
   

  	
  —

  	
   

  	
  ERISA Plans

  
	
  SCHEDULE IV

  	
   

  	
  —

  	
   

  	
  Real Property

  
	
  SCHEDULE V

  	
   

  	
  —

  	
   

  	
  Subsidiaries

  
	
  SCHEDULE VI

  	
   

  	
  —

  	
   

  	
  Existing
  Indebtedness

  
	
  SCHEDULE VII

  	
   

  	
  —

  	
   

  	
  Insurance

  
	
  SCHEDULE VIII

  	
   

  	
  —

  	
   

  	
  Existing Liens

  
	
  SCHEDULE IX

  	
   

  	
  —

  	
   

  	
  Existing
  Investments

  

 

iv

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  SCHEDULE X

  	
   

  	
  —

  	
   

  	
  Lender Addresses

  	
   

  
	
  SCHEDULE XI

  	
   

  	
  —

  	
   

  	
  Certain Tax
  Matters

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT A-1

  	
   

  	
  —

  	
   

  	
  Notice of
  Borrowing

  	
   

  
	
  EXHIBIT A-2

  	
   

  	
  —

  	
   

  	
  Notice of
  Conversion/Continuation

  	
   

  
	
  EXHIBIT B-1

  	
   

  	
  —

  	
   

  	
  Revolving Note

  	
   

  
	
  EXHIBIT B-2

  	
   

  	
  —

  	
   

  	
  Swingline Note

  	
   

  
	
  EXHIBIT C

  	
   

  	
  —

  	
   

  	
  Letter of Credit
  Request

  	
   

  
	
  EXHIBIT D

  	
   

  	
  —

  	
   

  	
  Section 4.04(b)(ii) Certificate

  	
   

  
	
  EXHIBIT E

  	
   

  	
  —

  	
   

  	
  Opinion of Weil,
  Gotshal and Manges LLP

  	
   

  
	
  EXHIBIT F

  	
   

  	
  —

  	
   

  	
  Officers’
  Certificate

  	
   

  
	
  EXHIBIT G

  	
   

  	
  —

  	
   

  	
  Pledge Agreement

  	
   

  
	
  EXHIBIT H

  	
   

  	
  —

  	
   

  	
  Subsidiaries
  Guaranty

  	
   

  
	
  EXHIBIT I

  	
   

  	
  —

  	
   

  	
  Security
  Agreement

  	
   

  
	
  EXHIBIT J

  	
   

  	
  —

  	
   

  	
  Solvency
  Certificate

  	
   

  
	
  EXHIBIT K

  	
   

  	
  —

  	
   

  	
  Compliance
  Certificate

  	
   

  
	
  EXHIBIT L

  	
   

  	
  —

  	
   

  	
  Assignment and
  Assumption Agreement

  	
   

  
	
  EXHIBIT M

  	
   

  	
  —

  	
   

  	
  Intercompany
  Note

  	
   

  
	
  EXHIBIT N

  	
   

  	
  —

  	
   

  	
  Mortgage

  	
   

  

 

v

 

CREDIT AGREEMENT, dated as of April 30, 2008,
among MAGELLAN HEALTH SERVICES, INC., a Delaware corporation (the “Borrower”),
the Lenders party hereto from time to time, and DEUTSCHE BANK AG, as
administrative agent (in such capacity, the “Administrative Agent”).  All capitalized terms used herein and defined
in Section 11 are used herein as therein defined.

 

W  I  T  N  E  S
S  E  T  H:

 

WHEREAS, subject to and upon the terms and conditions
set forth herein, the Lenders are willing to make available to the Borrower the
respective credit facilities provided for herein;

 

NOW, THEREFORE, IT IS AGREED:

 

SECTION 1.           Amount
and Terms of Credit.

 

1.01  The
Commitments.  (a) Subject to and
upon the terms and conditions set forth herein, each Lender severally agrees to
make, at any time and from time to time on or after the Effective Date and
prior to the Revolving Loan Maturity Date, a revolving loan or revolving loans
(each a “Revolving Loan” and, collectively, the “Revolving Loans”)
to the Borrower, which Revolving Loans (i) shall be denominated in
Dollars, (ii) shall, at the option of the Borrower, be incurred and
maintained as, and/or converted into, Base Rate Loans or Eurodollar Loans, provided
that, except as otherwise specifically provided in Section 1.10(b),
all Revolving Loans comprising the same Borrowing shall at all times be of the
same Type, (iii) may be repaid and reborrowed in accordance with the provisions
hereof, (iv) shall not exceed for any Lender at any time outstanding that
aggregate principal amount which, when added to the product of (x) such
Lender’s RL Percentage and (y) the sum of (I) the aggregate amount of
all Letter of Credit Outstandings (exclusive of Unpaid Drawings which are
repaid with the proceeds of, and simultaneously with the incurrence of, the
respective incurrence of Revolving Loans) at such time and (II) the
aggregate principal amount of all Swingline Loans (exclusive of Swingline Loans
which are repaid with the proceeds of, and simultaneously with the incurrence
of, the respective incurrence of Revolving Loans) then outstanding, equals the
Revolving Loan Commitment of such Lender at such time, and (v) shall not
exceed in aggregate principal amount at any time outstanding, when added to the
aggregate principal amount of all Swingline Loans (exclusive of Swingline Loans
which are repaid with the proceeds of, and simultaneously with the incurrence
of, the respective incurrence of Revolving Loans) then outstanding, the Maximum
Revolving Loan Amount at such time.

 

(b)           Subject to and upon the
terms and conditions set forth herein, the Swingline Lender agrees to make, at
any time and from time to time on or after the Effective Date and prior to the
Swingline Expiry Date, a revolving loan or revolving loans (each a “Swingline
Loan” and, collectively, the “Swingline Loans”) to the Borrower,
which Swingline Loans (i) shall be incurred and maintained as Base Rate
Loans, (ii) shall be denominated in Dollars, (iii) may be repaid and
reborrowed in accordance with the provisions hereof, (iv) shall not exceed
in aggregate principal amount at any time outstanding, when combined with the
aggregate principal amount of all Revolving Loans (exclusive of Revolving Loans
which are repaid with the proceeds of, and simultaneously with the incurrence
of, the respective incurrence of Swingline Loans) then outstanding and the
aggregate amount of all Letter of Credit Outstandings (exclusive of Unpaid
Drawings which are repaid with the proceeds of, and simultaneously with the
incurrence of, the respective incurrence 

 

 

of Swingline Loans) at such
time, an amount equal to the Total Revolving Loan Commitment at such time, (v) shall
not exceed in aggregate principal amount at any time outstanding, when combined
with the aggregate principal amount of all Revolving Loans (exclusive of
Revolving Loans which are repaid with the proceeds of, and simultaneously with
the incurrence of, the respective incurrence of Swingline Loans) then
outstanding, the Maximum Revolving Loan Amount at such time, and (vi) shall
not exceed in aggregate principal amount at any time outstanding the Maximum
Swingline Amount.  Notwithstanding
anything to the contrary contained in this Section 1.01(b), (i) the
Swingline Lender shall not be obligated to make any Swingline Loans at a time
when a Lender Default exists unless the Swingline Lender has entered into
arrangements satisfactory to it and the Borrower to eliminate the Swingline
Lender’s risk with respect to the Defaulting Lender’s participation in such
Swingline Loans, including by cash collateralizing such Defaulting Lender’s RL
Percentage of the outstanding Swingline Loans, and (ii) the Swingline
Lender shall not make any Swingline Loan after it has received written notice
from the Borrower, any other Credit Party or the Required Lenders stating that
a Default or an Event of Default exists and is continuing until such time as
the Swingline Lender shall have received written notice (A) of rescission
of all such notices from the party or parties originally delivering such notice
or notices or (B) of the waiver of such Default or Event of Default by the
Required Lenders.

 

(c)           On any Business Day,
the Swingline Lender may, in its sole discretion, give notice to the Lenders
that the Swingline Lender’s outstanding Swingline Loans shall be funded with
one or more Borrowings of Revolving Loans (provided that such notice
shall be deemed to have been automatically given upon the occurrence of a
Default or an Event of Default under Section 10.05 or upon the
exercise of any of the remedies provided in the last paragraph of Section 10),
in which case one or more Borrowings of Revolving Loans constituting Base Rate
Loans (each such Borrowing, a “Mandatory Borrowing”) shall be made on
the immediately succeeding Business Day by all Lenders pro  rata
based on each such Lender’s RL Percentage (determined before giving effect to
any termination of the Revolving Loan Commitments pursuant to the last
paragraph of Section 10) and the proceeds thereof shall be applied
directly by the Swingline Lender to repay the Swingline Lender for such
outstanding Swingline Loans.  Each Lender
hereby irrevocably agrees to make Revolving Loans upon one Business Day’s
notice pursuant to each Mandatory Borrowing in the amount and in the manner
specified in the preceding sentence and on the date specified in writing by the
Swingline Lender notwithstanding (i) the amount of the Mandatory Borrowing
may not comply with the Minimum Borrowing Amount otherwise required hereunder, (ii) whether
any conditions specified in Section 6 are then satisfied, (iii) whether
a Default or an Event of Default then exists, (iv) the date of such
Mandatory Borrowing, and (v) the amount of the Total Revolving Loan Commitment
or the Maximum Revolving Loan Amount at such time.  In the event that any Mandatory Borrowing
cannot for any reason be made on the date otherwise required above (including,
without limitation, as a result of the commencement of a proceeding under the
Bankruptcy Code with respect to the Borrower), then each Lender hereby agrees
that it shall forthwith purchase (as of the date the Mandatory Borrowing would
otherwise have occurred, but adjusted for any payments received from the
Borrower on or after such date and prior to such purchase) from the Swingline
Lender such participations in the outstanding Swingline Loans as 

 

2

 

shall be necessary to cause the
Lenders to share in such Swingline Loans ratably based upon their respective RL
Percentages (determined before giving effect to any termination of the
Revolving Loan Commitments pursuant to the last paragraph of Section 10),
provided that (x) all interest payable on the Swingline Loans shall
be for the account of the Swingline Lender until the date as of which the
respective participation is required to be purchased and, to the extent
attributable to the purchased participation, shall be payable to the
participant from and after such date and (y) at the time any purchase of
participations pursuant to this sentence is actually made, the purchasing
Lender shall be required to pay the Swingline Lender interest on the principal
amount of participation purchased for each day from and including the day upon which
the Mandatory Borrowing would otherwise have occurred to but excluding the date
of payment for such participation, at the overnight Federal Funds Rate for the
first three days and at the interest rate otherwise applicable to Base Rate
Loans hereunder for each day thereafter.

 

1.02  Minimum
Amount of Each Borrowing.  The
aggregate principal amount of each Borrowing of Revolving Loans and Swingline
Loans shall not be less than the Minimum Borrowing Amount applicable to such
Loans.  More than one Borrowing may occur
on the same date, but at no time shall there be outstanding more than ten
Borrowings of Eurodollar Loans in the aggregate.

 

1.03  Notice
of Borrowing.  (a) Whenever the
Borrower desires to incur (x) Eurodollar Loans hereunder, the Borrower shall
give the Administrative Agent at the Notice Office at least three Business
Days’ prior notice of each Eurodollar Loan to be incurred hereunder and (y) Base
Rate Loans hereunder (excluding Swingline Loans and Revolving Loans made
pursuant to a Mandatory Borrowing), the Borrower shall give the Administrative
Agent at the Notice Office at least one Business Day’s prior notice of each
Base Rate Loan to be incurred hereunder, provided that (in each case)
any such notice shall be deemed to have been given on a certain day only if
given before 11:00 A.M. (New York time) on such day.  Each such notice (each a “Notice of
Borrowing”), except as otherwise expressly provided in Section 1.10,
shall be irrevocable and shall be in writing, or by telephone promptly confirmed
in writing, in the form of Exhibit A-1, appropriately completed to
specify:  (i) the aggregate
principal amount of the Revolving Loans to be incurred pursuant to such
Borrowing, (ii) the date of such Borrowing (which shall be a Business
Day), and (iii) whether the Revolving Loans being incurred pursuant to
such Borrowing are to be initially maintained as Base Rate Loans or, to the
extent permitted hereunder, Eurodollar Loans and, if Eurodollar Loans, the
initial Interest Period to be applicable thereto.  The Administrative Agent shall promptly give
each Lender notice of such proposed Borrowing, of such Lender’s proportionate
share thereof and of the other matters required by the immediately preceding
sentence to be specified in the Notice of Borrowing.

 

(b)           (i) Whenever the
Borrower desires to incur Swingline Loans hereunder, the Borrower shall give
the Swingline Lender no later than 1:00 P.M. (New York time) on the date
that a Swingline Loan is to be incurred, written notice or telephonic notice
promptly confirmed in writing of each Swingline Loan to be incurred
hereunder.  Each such notice shall be
irrevocable and specify in each case (A) the date of Borrowing (which
shall be a Business Day), and (B) the aggregate principal amount of the
Swingline Loans to be incurred pursuant to such Borrowing.

 

3

 

(ii)           Mandatory Borrowings
shall be made upon the notice specified in Section 1.01(c), with
the Borrower irrevocably agreeing, by its incurrence of any Swingline Loan, to
the making of the Mandatory Borrowings as set forth in

Section 1.01(c).

 

(c)           Without in any way
limiting the obligation of the Borrower to confirm in writing any telephonic
notice of any Borrowing or prepayment of Loans, the Administrative Agent or the
Swingline Lender, as the case may be, may act without liability upon the basis
of telephonic notice of such Borrowing or prepayment, as the case may be,
believed by the Administrative Agent or the Swingline Lender, as the case may
be, in good faith to be from an Authorized Officer of the Borrower, prior to
receipt of written confirmation.  In each
such case, the Borrower hereby waives the right to dispute the Administrative
Agent’s or Swingline Lender’s record of the terms of such telephonic notice of
such Borrowing or prepayment of Loans, as the case may be, absent manifest
error.

 

1.04  Disbursement
of Funds.  No later than 1:00 P.M.
(New York time) on the date specified in each Notice of Borrowing (or (x) in
the case of Swingline Loans, no later than 4:00 P.M. (New York time) on
the date specified pursuant to Section 1.03(b)(i) or (y) in
the case of Mandatory Borrowings, no later than 1:00 P.M. (New York time)
on the date specified in Section 1.01(c)), each Lender will make
available its pro  rata portion (determined in accordance with Section 1.07)
of each such Borrowing requested to be made on such date (or in the case of
Swingline Loans, the Swingline Lender will make available the full amount
thereof).  All such amounts will be made
available in Dollars and in immediately available funds at the Payment Office,
and the Administrative Agent will, except in the case of Revolving Loans made
pursuant to a Mandatory Borrowing, make available to the Borrower at the
Payment Office the aggregate of the amounts so made available by the
Lenders.  Unless the Administrative Agent
shall have been notified by any Lender prior to the date of Borrowing that such
Lender does not intend to make available to the Administrative Agent such
Lender’s portion of any Borrowing to be made on such date, the Administrative
Agent may assume that such Lender has made such amount available to the
Administrative Agent on such date of Borrowing and the Administrative Agent may
(but shall not be obligated to), in reliance upon such assumption, make
available to the Borrower a corresponding amount.  If such corresponding amount is not in fact
made available to the Administrative Agent by such Lender, the Administrative
Agent shall be entitled to recover such corresponding amount on demand from
such Lender.  If such Lender does not pay
such corresponding amount forthwith upon the Administrative Agent’s demand
therefor, the Administrative Agent shall promptly notify the Borrower and the
Borrower shall promptly (but in any event within one Business Day thereafter)
pay such corresponding amount to the Administrative Agent.  The Administrative Agent also shall be
entitled to recover on demand from such Lender or the Borrower, as the case may
be, interest on such corresponding amount in respect of each day from the date
such corresponding amount was made available by the Administrative Agent to the
Borrower until the date such corresponding amount is recovered by the
Administrative Agent, at a rate per annum equal to (i) if recovered from
such Lender, the overnight Federal Funds Rate for the first three days and at
the interest rate otherwise applicable to such Loans for each day thereafter,
and (ii) if recovered from the Borrower, the rate of interest applicable
to the respective Borrowing, as determined pursuant to Section 1.08.  Nothing in this Section 1.04
shall be deemed to relieve any Lender from its obligation to make Loans
hereunder or to prejudice any rights which the Borrower may have against any
Lender as a result of any failure by such Lender to make Loans hereunder.

 

4

 

1.05  Notes.  (a) The Borrower’s obligation to pay the
principal of, and interest on, the Loans made by each Lender shall be evidenced
in the Register maintained by the Administrative Agent pursuant to Section 13.15
and shall, if requested by such Lender, also be evidenced (i) in the case
of Revolving Loans, by a promissory note duly executed and delivered by the
Borrower substantially in the form of Exhibit B-1, with blanks
appropriately completed in conformity herewith (each a “Revolving Note”
and, collectively, the “Revolving Notes”), and (ii) in the case of
Swingline Loans, by a promissory note duly executed and delivered by the
Borrower substantially in the form of Exhibit B-2, with blanks
appropriately completed in conformity herewith (the “Swingline Note”).

 

(b)           The Revolving Note
issued to each Lender shall (i) be executed by the Borrower, (ii) be
payable to such Lender or its registered assigns and be dated the Effective
Date (or, if issued after the Effective Date, be dated the date of the issuance
thereof), (iii) be in a stated principal amount equal to the Revolving
Loan Commitment of such Lender (or, if issued after the termination thereof, be
in a stated principal amount equal to the outstanding Revolving Loans of such
Lender at such time) and be payable in the outstanding principal amount of the
Revolving Loans evidenced thereby from time to time, (iv) mature on the
Revolving Loan Maturity Date, (v) bear interest as provided in the
appropriate clause of Section 1.08 in respect of the Base Rate
Loans and Eurodollar Loans, as the case may be, evidenced thereby, (vi) be
subject to voluntary prepayment as provided in Section 4.01, and
mandatory repayment as provided in Section 4.02, and (vii) be
entitled to the benefits of this Agreement and the other Credit Documents.

 

(c)           The Swingline Note
issued to the Swingline Lender shall (i) be executed by the Borrower, (ii) be
payable to the Swingline Lender or its registered assigns and be dated the
Effective Date, (iii) be in a stated principal amount equal to the Maximum
Swingline Amount and be payable in the outstanding principal amount of the
Swingline Loans evidenced thereby from time to time, (iv) mature on the
Swingline Expiry Date, (v) bear interest as provided in the appropriate
clause of Section 1.08 in respect of the Base Rate Loans evidenced
thereby, (vi) be subject to voluntary prepayment as provided in Section 4.01,
and mandatory repayment as provided in Section 4.02, and (vii) be
entitled to the benefits of this Agreement and the other Credit Documents.

 

(d)           Each Lender will note
on its internal records the amount of each Loan made by it and each payment in
respect thereof and prior to any transfer of any of its Notes will endorse on
the reverse side thereof the outstanding principal amount of Loans evidenced
thereby. Failure to make any such notation or any error in such notation shall
not affect the Borrower’s obligations in respect of such Loans.

 

(e)           Notwithstanding
anything to the contrary contained above in this Section 1.05 or
elsewhere in this Agreement, Notes shall only be delivered to Lenders which at
any time specifically request the delivery of such Notes.  No failure of any Lender to request or obtain
a Note evidencing its Loans to the Borrower shall affect or in any manner
impair the obligations of the Borrower to pay the Loans (and all related
Obligations) incurred by the Borrower which would otherwise be evidenced
thereby in accordance with the requirements of this Agreement, and shall not in
any way affect the security or guaranties therefor provided pursuant to the
various Credit Documents.  Any Lender
which does not have a Note evidencing 

 

5

 

its outstanding Loans shall in
no event be required to make the notations otherwise described in preceding
clause (d).  At any time when any Lender
requests the delivery of a Note to evidence any of its Loans, the Borrower shall
promptly execute and deliver to the respective Lender, at the Borrower’s
expense, the requested Note in the appropriate amount or amounts to evidence
such Loans.

 

1.06  Conversions.  The Borrower shall have the option to
convert, on any Business Day, all or a portion equal to at least the Minimum
Borrowing Amount of the outstanding principal amount of Revolving Loans made
pursuant to one or more Borrowings of one Type of Revolving Loans into a
Borrowing of another Type of Revolving Loan, provided that (i) except
as otherwise provided in Section 1.10(b), Eurodollar Loans may be
converted into Base Rate Loans only on the last day of an Interest Period
applicable to the Revolving Loans being converted and no such partial
conversion of Eurodollar Loans shall reduce the outstanding principal amount of
such Eurodollar Loans made pursuant to a single Borrowing to less than the
Minimum Borrowing Amount applicable thereto, (ii) Base Rate Loans may not
be converted into Eurodollar Loans if (x) a Default or an Event of Default
under Section 10.05 is in existence on the date of the conversion or (y) any
other Default or Event of Default is in existence on the date of the conversion
and the Administrative Agent has received instructions from the Required
Lenders to that effect, and (iii) no conversion pursuant to this Section 1.06
shall result in a greater number of Borrowings of Eurodollar Loans than is
permitted under Section 1.02. 
Each such conversion shall be effected by the Borrower by giving the
Administrative Agent at the Notice Office prior to 11:00 A.M. (New York
time) at least three Business Days’ prior notice (each a “Notice of
Conversion/Continuation”) in the form of Exhibit A-2,
appropriately completed to specify the Revolving Loans to be so converted, the
Borrowing or Borrowings pursuant to which such Revolving Loans were incurred
and, if to be converted into Eurodollar Loans, the Interest Period to be
initially applicable thereto.  The
Administrative Agent shall give each Lender prompt notice of any such proposed
conversion affecting any of its Revolving Loans.  Upon any such conversion the proceeds thereof
will be deemed to be applied directly on the day of such conversion to prepay
the outstanding principal amount of the Revolving Loans being converted.   Swingline Loans may not be converted pursuant
to this Section 1.06.

 

1.07  Pro  Rata Borrowings. 
All Borrowings of Revolving Loans (including Mandatory Borrowings) under
this Agreement shall be incurred from the Lenders pro  rata on the
basis of their RL Percentages.  It is
understood that no Lender shall be responsible for any default by any other
Lender of its obligation to make Loans hereunder and that each Lender shall be
obligated to make the Loans provided to be made by it hereunder, regardless of
the failure of any other Lender to make its Loans hereunder.

 

1.08  Interest.  (a) The Borrower agrees to pay interest
in respect of the unpaid principal amount of each Base Rate Loan from the date
of Borrowing thereof until the earlier of (i) the maturity thereof
(whether by acceleration or otherwise) and (ii) the conversion of such
Base Rate Loan to a Eurodollar Loan pursuant to Section 1.06 or 1.09,
as applicable, at a rate per annum which shall be equal to the Base Rate as in
effect from time to time.

 

(b)           The Borrower agrees to
pay interest in respect of the unpaid principal amount of each Eurodollar Loan
from the date of Borrowing thereof until the earlier of (i) the maturity
thereof (whether by acceleration or otherwise) and (ii) the conversion of
such 

 

6

 

Eurodollar Loan to a Base Rate
Loan pursuant to Section 1.06, 1.09 or 1.10, as
applicable, at a rate per annum which shall, during each Interest Period
applicable thereto, be equal to the sum of the Applicable Margin as in effect
from time to time during such Interest Period plus the Eurodollar Rate for such
Interest Period.

 

(c)           Overdue principal and,
to the extent permitted by law, overdue interest in respect of each Loan shall,
in each case, bear interest at a rate per annum equal to the greater of (x) the
rate which is 2% in excess of the rate then borne by such Loans and (y) the
rate which is 2% in excess of the rate otherwise applicable to Base Rate Loans
from time to time, and all other overdue amounts payable hereunder and under
any other Credit Document shall bear interest at a rate per annum equal to the
rate which is 2% in excess of the rate applicable to Base Rate Loans from time
to time.  Interest that accrues under
this Section 1.08(c) shall be payable on demand.

 

(d)           Accrued (and theretofore
unpaid) interest shall be payable (i) in respect of each Base Rate Loan, (x)
quarterly in arrears on each Quarterly Payment Date, (y) on the date of
any repayment or prepayment in full of all outstanding Base Rate Loans, and (z) at
maturity (whether by acceleration or otherwise) and, after such maturity, on
demand, and (ii) in respect of each Eurodollar Loan, (x) on the last
day of each Interest Period applicable thereto and, in the case of an Interest
Period in excess of three months, on each date occurring at three month
intervals after the first day of such Interest Period, and (y) on the date
of any repayment or prepayment (on the amount repaid or prepaid), at maturity
(whether by acceleration or otherwise) and, after such maturity, on demand.

 

(e)           Upon each Interest
Determination Date, the Administrative Agent shall determine the Eurodollar
Rate for each Interest Period applicable to the respective Eurodollar Loans and
shall promptly notify the Borrower and the Lenders thereof.  Each such determination shall, absent
manifest error, be final and conclusive and binding on all parties hereto.

 

1.09  Interest
Periods for Eurodollar Loans.  At the
time the Borrower gives any Notice of Borrowing or Notice of
Conversion/Continuation in respect of the making of, or conversion into, any
Eurodollar Loan (in the case of the initial Interest Period applicable thereto)
or prior to 11:00 A.M. (New York time) on the third Business Day prior to
the expiration of an Interest Period applicable to such Eurodollar Loan (in the
case of any subsequent Interest Period), the Borrower shall have the right to
elect the Interest Period applicable to such Eurodollar Loan, which Interest
Period shall, at the option of the Borrower, be a one, two, three or six month
period, provided that (in each case):

 

(i)            all
Eurodollar Loans comprising a Borrowing shall at all times have the same
Interest Period;

 

(ii)           the
initial Interest Period for any Eurodollar Loan shall commence on the date of
Borrowing of such Eurodollar Loan (including the date of any conversion thereto
from a Base Rate Loan) and each Interest Period occurring thereafter in respect
of such Eurodollar Loan shall commence on the day on which the next preceding
Interest Period applicable thereto expires;

 

7

 

(iii)          if
any Interest Period for a Eurodollar Loan begins on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period, such Interest Period shall end on the last Business Day of such
calendar month;

 

(iv)          if
any Interest Period for a Eurodollar Loan would otherwise expire on a day which
is not a Business Day, such Interest Period shall expire on the next succeeding
Business Day; provided, however, that if any Interest Period for
a Eurodollar Loan would otherwise expire on a day which is not a Business Day
but is a day of the month after which no further Business Day occurs in such
month, such Interest Period shall expire on the next preceding Business Day;

 

(v)           no
Interest Period may be selected at any time when (x) a Default or an Event
of Default under Section 10.05 is then in existence or (y) any other
Default or Event of Default is then in existence and the Administrative Agent
has received instructions from the Required Lenders to that effect; and

 

(vi)          no
Interest Period in respect of any Borrowing of any Eurodollar Loans shall be
selected which extends beyond the Revolving Loan Maturity Date.

 

If by 11:00 A.M. (New York time) on the third
Business Day prior to the expiration of any Interest Period applicable to a
Borrowing of Eurodollar Loans, the Borrower has failed to elect, or is not
permitted to elect, a new Interest Period to be applicable to such Eurodollar
Loans as provided above, the Borrower shall be deemed to have elected to
convert such Eurodollar Loans into Base Rate Loans effective as of the
expiration date of such current Interest Period.

 

1.10  Increased
Costs, Illegality, etc.  (a) In
the event that any Lender shall have determined (which determination shall,
absent manifest error, be final and conclusive and binding upon all parties
hereto but, with respect to clause (i) below, may be made only by the
Administrative Agent):

 

(i)            on
any Interest Determination Date that, by reason of any changes arising after
the date of this Agreement affecting the interbank Eurodollar market, adequate
and fair means do not exist for ascertaining the applicable interest rate on
the basis provided for in the definition of Eurodollar Rate; or

 

(ii)           at
any time, that such Lender shall incur increased costs or reductions in the
amounts received or receivable hereunder with respect to any Eurodollar Loan
because of (x) any change since the Effective Date in any applicable law
or governmental rule, regulation, order, guideline or request (whether or not
having the force of law) or in the interpretation or administration thereof and
including the introduction of any new law or governmental rule, regulation,
order, guideline or request, such as, but not limited to:  (A) a change in the basis of taxation of
payment to any Lender of the principal of or interest on the Loans or the Notes
or any other amounts payable hereunder (except for (x) taxes with respect
to which additional amounts are paid pursuant to Section 4.04 or (y) changes
in the rate of tax on, or determined by reference to, the net income or net 

 

8

 

profits (or any franchise or
similar tax imposed in lieu of a net income or net profits tax) of such Lender
pursuant to the laws of the jurisdiction in which it is organized or in which
its principal office or applicable lending office is located or any subdivision
thereof or therein) or (B) a change in official reserve requirements, but,
in all events, excluding reserves required under Regulation D to the extent
included in the computation of the Eurodollar Rate and/or (y) other
circumstances arising since the Effective Date affecting such Lender, the
interbank Eurodollar market or the position of such Lender in such market; or

 

(iii)          at
any time, that the making or continuance of any Eurodollar Loan has been made (x) unlawful
by any law or governmental rule, regulation or order, (y) impossible by
compliance by any Lender in good faith with any governmental request (whether
or not having force of law) or (z) impracticable as a result of a
contingency occurring after the Effective Date which materially and adversely
affects the interbank Eurodollar market;

 

then, and in any such
event, such Lender (or the Administrative Agent, in the case of clause (i) above)
shall promptly give notice (by telephone promptly confirmed in writing) to the
Borrower and, except in the case of clause (i) above, to the
Administrative Agent of such determination (which notice the Administrative
Agent shall promptly transmit to each of the other Lenders).  Thereafter (x) in the case of clause (i) above,
Eurodollar Loans shall no longer be available until such time as the
Administrative Agent notifies the Borrower and the Lenders that the
circumstances giving rise to such notice by the Administrative Agent no longer
exist, and any Notice of Borrowing or Notice of Conversion/Continuation given
by the Borrower with respect to Eurodollar Loans which have not yet been
incurred (including by way of conversion) shall be deemed rescinded by the
Borrower, (y) in the case of clause (ii) above, the Borrower agrees
to pay to such Lender, upon such Lender’s written request therefor, such
additional amounts (in the form of an increased rate of, or a different method of
calculating, interest or otherwise as such Lender in its reasonable discretion
shall determine) as shall be required to compensate such Lender for such
increased costs or reductions in amounts received or receivable hereunder (a
written notice as to the additional amounts owed to such Lender, showing in
reasonable detail the basis for the calculation thereof, submitted to the
Borrower by such Lender shall, absent manifest error, be final and conclusive
and binding on all the parties hereto) and (z) in the case of clause (iii) above,
the Borrower shall take one of the actions specified in Section 1.10(b) as
promptly as possible and, in any event, within the time period required by law.

 

(b)           At any time that any
Eurodollar Loan is affected by the circumstances described in Section 1.10(a)(ii),
the Borrower may, and in the case of a Eurodollar Loan affected by the
circumstances described in Section 1.10(a)(iii), the Borrower
shall, either (x) if the affected Eurodollar Loan is then being made
initially or pursuant to a conversion, cancel such Borrowing by giving the
Administrative Agent telephonic notice (confirmed in writing) on the same date
that the Borrower was notified by the affected Lender or the Administrative
Agent pursuant to Section 1.10(a)(ii) or (iii) or (y) if
the affected Eurodollar Loan is then outstanding, upon at least three Business
Days’ written notice to the Administrative Agent, require the affected Lender
to convert such Eurodollar Loan into a Base Rate Loan, provided that, if
more than one Lender is affected at any time, then all affected Lenders must be
treated the same pursuant to this Section 1.10(b).

 

9

 

(c)           If any Lender
determines that after the date on which it became a Lender hereunder the
introduction of or any change in any applicable law or governmental rule,
regulation, order, guideline, directive or request (whether or not having the
force of law) concerning capital adequacy, or any change in interpretation or
administration thereof by the NAIC or any governmental authority, central bank
or comparable agency, will have the effect of increasing the amount of capital
required or expected to be maintained by such Lender or any corporation
controlling such Lender based on the existence of such Lender’s Revolving Loan
Commitment hereunder or its obligations hereunder, then the Borrower agrees to
pay to such Lender, upon its written demand therefor, such additional amounts
as shall be required to compensate such Lender or such other corporation for
the increased cost to such Lender or such other corporation or the reduction in
the rate of return to such Lender or such other corporation as a result of such
increase of capital.  In determining such
additional amounts, each Lender will act reasonably and in good faith and will
use averaging and attribution methods which are reasonable, provided
that such Lender’s determination of compensation owing under this Section 1.10(c) shall,
absent manifest error, be final and conclusive and binding on all the parties
hereto.  Each Lender, upon determining
that any additional amounts will be payable pursuant to this Section 1.10(c),
will give prompt written notice thereof to the Borrower, which notice shall
show in reasonable detail the basis for calculation of such additional amounts.

 

1.11  Compensation.  The Borrower agrees to compensate each
Lender, upon its written request (which request shall set forth in reasonable
detail the basis for requesting such compensation), for all losses, liabilities
and reasonable expenses (including, without limitation, any loss, expense or
liability incurred by reason of the liquidation or reemployment of deposits or
other funds required by such Lender to fund its Eurodollar Loans but excluding
loss of anticipated profits) which such Lender may sustain:  (i) if for any reason (other than a
default by such Lender or the Administrative Agent) a Borrowing of, or
conversion from or into, Eurodollar Loans does not occur on a date specified
therefor in a Notice of Borrowing or Notice of Conversion/Continuation (whether
or not withdrawn by the Borrower or deemed withdrawn pursuant to Section 1.10(a));
(ii) if any prepayment or repayment (including any prepayment or repayment
made pursuant to Section 4.01, Section 4.02 or as a
result of an acceleration of the Loans pursuant to Section 10) or
conversion of any of its Eurodollar Loans occurs on a date which is not the
last day of an Interest Period with respect thereto; (iii) if any
prepayment of any of its Eurodollar Loans is not made on any date specified in
a notice of prepayment given by the Borrower; or (iv) as a consequence of (x) any
other default by the Borrower to repay Eurodollar Loans when required by the
terms of this Agreement or any Note held by such Lender or (y) any
election made pursuant to Section 1.10(b).  Any Lender’s determination of compensation
owing to it under this Section 1.11 shall, absent manifest error,
be final and conclusive and binding on all the parties hereto.

 

1.12  Change
of Lending Office.  Each Lender and
Issuing Lender agrees that on the occurrence of any event giving rise to the
operation of Section 1.10(a)(ii) or (iii), Section 1.10(c),
Section 2.06 or Section 4.04 with respect to such
Lender or Issuing Lender, it will, if requested by the Borrower, use reasonable
efforts (subject to overall policy considerations of such Lender or Issuing
Lender) to designate another lending office for any Loans or Letters of Credit
affected by such event, provided that such designation is made on such
terms that such Lender or Issuing Lender and its lending office suffer no
economic, legal or regulatory disadvantage, with the object of avoiding the
consequence of the event giving rise to the 

 

10

 

operation of such
Section.  Nothing in this Section 1.12
shall affect or postpone any of the obligations of the Borrower or the right of
any Lender or Issuing Lender provided in Sections 1.10, 2.06 and 4.04.

 

1.13  Replacement
of Lenders.  (x) If any Lender
becomes a Defaulting Lender or otherwise defaults in its obligations to make
Loans, (y) upon the occurrence of an event giving rise to the operation of
Section 1.10(a)(ii) or (iii), Section 1.10(c),
Section 2.06 or Section 4.04 with respect to any Lender
which results in such Lender charging to the Borrower increased costs or (z) in
the case of a refusal by a Lender to consent to certain proposed changes,
waivers, discharges or terminations with respect to this Agreement which have
been approved by the Required Lenders as (and to the extent) provided in Section 13.12(b),
the Borrower shall have the right, if no Default or Event of Default then
exists (or, in the case of preceding clause (z), will exist immediately after
giving effect to such replacement), to replace such Lender with one or more
other Eligible Transferees, none of whom shall constitute a Defaulting Lender
at the time of such replacement (collectively, the “Replacement Lender”)
and each of whom shall be reasonably acceptable to the Administrative Agent
(each such Lender which is replaced by a Replacement Lender is referred to
herein as a “Replaced Lender”); provided that:

 

(i)            at
the time of any replacement pursuant to this Section 1.13, the
Replaced Lender and the Replacement Lender shall enter into one or more
Assignment and Assumption Agreements pursuant to Section 13.04(b) (and
with all fees payable pursuant to said Section 13.04(b) to be
paid by the Replacement Lender and/or the Replaced Lender (as may be agreed to
at such time by and among the Borrower, the Replacement Lender and the Replaced
Lender)) pursuant to which the Replacement Lender shall acquire the Revolving
Loan Commitment and outstanding Revolving Loans of, and participations in
Letters of Credit by, the Replaced Lender and in connection therewith, the
Replacement Lender shall pay to (I) the Replaced Lender in respect thereof
an amount equal to the sum of (1) an amount equal to the aggregate
principal of, and all accrued and unpaid interest on, all outstanding Revolving
Loans of the Replaced Lender, (2) an amount equal to all Unpaid Drawings
that have been funded by (and not reimbursed to) such Replaced Lender, together
with all then accrued and unpaid interest with respect thereto at such time,
and (3) an amount equal to all accrued, but theretofore unpaid, Fees owing
to the Replaced Lender pursuant to Section 3.01, (II) each
Issuing Lender in respect thereof an amount equal to such Replaced Lender’s RL
Percentage of any Unpaid Drawing (which at such time remains an Unpaid Drawing)
to the extent such amount was not theretofore funded by such Replaced Lender to
such Issuing Lender, together with all then accrued and unpaid interest with
respect thereto at such time, and (III) the Swingline Lender in respect
thereof an amount equal to such Replaced Lender’s RL Percentage of any
Mandatory Borrowing to the extent such amount was not theretofore funded by
such Replaced Lender to the Swingline Lender, together with all then accrued
and unpaid interest with respect thereto at such time; and

 

(ii)           all
obligations of the Borrower due and owing to the Replaced Lender at such time
(other than those specifically described in clause (i) above in respect of
which the assignment purchase price has been, or is concurrently being, paid)
shall be paid in full to such Replaced Lender concurrently with such
replacement.

 

11

 

Upon receipt by the Replaced Lender of all amounts
required to be paid to it pursuant to this Section 1.13, the
Administrative Agent shall be entitled (but not obligated) and authorized to
execute an Assignment and Assumption Agreement on behalf of such Replaced
Lender, and any such Assignment and Assumption Agreement so executed by the
Administrative Agent and the Replacement Lender shall be effective for purposes
of this Section 1.13 and Section 13.04.  Upon the execution of the respective
Assignment and Assumption Agreement, the payment of amounts referred to in clauses
(i) and (ii) above, recordation of the assignment on the Register by
the Administrative Agent pursuant to Section 13.15 and, if so
requested by the Replacement Lender, delivery to the Replacement Lender of the
appropriate Revolving Note executed by the Borrower, the Replacement Lender
shall become a Lender hereunder and the Replaced Lender shall cease to
constitute a Lender hereunder, except with respect to indemnification
provisions under this Agreement (including, without limitation, Sections
1.10, 1.11, 2.06, 4.04, 12.06, 13.01 and
13.06), which shall survive as to such Replaced Lender.

 

SECTION 2.           Letters
of Credit.

 

2.01  Letters
of Credit.  (a) Subject to and
upon the terms and conditions set forth herein, the Borrower may request that
an Issuing Lender issue, at any time and from time to time on and after the
Effective Date and prior to the 5th Business Day prior to the Revolving Loan
Maturity Date, for the account of the Borrower and for the benefit of any
holder (or any trustee, agent or other similar representative for any such
holders) of L/C Supportable Obligations of the Borrower or any of its
Subsidiaries, an irrevocable standby letter of credit, in a form customarily
used by such Issuing Lender or in such other form as is reasonably acceptable
to such Issuing Lender (each such letter of credit, a “Letter of Credit”
and, collectively, the “Letters of Credit”).  All Letters of Credit shall be denominated in
Dollars and shall be issued on a sight basis only.  It is hereby acknowledged and agreed that
each of the letters of credit described on Schedule II (the “Existing
Letters of Credit”), which were issued by DBAG (or an Affiliate thereof)
under the Existing Credit Agreement and remain outstanding on the Effective
Date, shall constitute a “Letter of Credit” for all purposes of this
Agreement and shall be deemed issued under this Agreement on the Effective
Date.

 

(b)           Subject to and upon the
terms and conditions set forth herein, each Issuing Lender agrees that it will,
at any time and from time to time on and after the Effective Date and prior to
the 5th Business Day prior to the Revolving Loan Maturity Date, following its
receipt of the respective Letter of Credit Request, issue for account of the
Borrower, one or more Letters of Credit as are permitted to remain outstanding
hereunder without giving rise to a Default or an Event of Default, provided
that no Issuing Lender shall be under any obligation to issue any Letter of
Credit of the types described above if at the time of such issuance:

 

(i)            any
order, judgment or decree of any governmental authority or arbitrator shall
purport by its terms to enjoin or restrain such Issuing Lender from issuing
such Letter of Credit or any requirement of law applicable to such Issuing
Lender or any request or directive (whether or not having the force of law)
from any governmental authority with jurisdiction over such Issuing Lender
shall prohibit, or request that such Issuing Lender refrain from, the issuance
of letters of credit generally or such Letter of Credit in particular or shall
impose upon such Issuing Lender with respect to such Letter of Credit any
restriction or reserve or capital requirement (for which such Issuing Lender 

 

12

 

is not otherwise compensated
hereunder) not in effect with respect to such Issuing Lender on the date
hereof, or any unreimbursed loss, cost or expense which was not applicable or
in effect with respect to such Issuing Lender as of the date hereof and which
such Issuing Lender reasonably and in good faith deems material to it; or

 

(ii)           such
Issuing Lender shall have received from the Borrower, any other Credit Party or
the Required Lenders prior to the issuance of such Letter of Credit notice of
the type described in the second sentence of Section 2.03(b).

 

2.02  Maximum
Letter of Credit Outstandings; Final Maturities; etc.  Notwithstanding anything to the contrary
contained in this Agreement, (i) no Letter of Credit shall be issued the
Stated Amount of which, when added to the Letter of Credit Outstandings
(exclusive of Unpaid Drawings which are repaid on the date of, and prior to the
issuance of, the respective Letter of Credit) at such time would exceed, when
added to the sum of (I) the aggregate principal amount of all Revolving
Loans then outstanding and (II) the aggregate principal amount of all
Swingline Loans then outstanding, an amount equal to the Total Revolving Loan
Commitment at such time, and (ii) each Letter of Credit shall by its terms
terminate on or before the earlier of (A) the date which occurs 12 months
after the date of the issuance thereof (although any such Letter of Credit
shall be extendible for successive periods of up to 12 months, but, in each
case, not beyond the one year anniversary of the Revolving Loan Maturity Date,
on terms acceptable to the respective Issuing Lender) and (B) the one year
anniversary of the Revolving Loan Maturity Date.

 

2.03  Letter
of Credit Requests; Minimum Stated Amount. 
(a) Whenever the Borrower desires that a Letter of Credit be issued
for its account, the Borrower shall give the Administrative Agent and the
respective Issuing Lender at least five Business Days’ (or such shorter period
as is acceptable to such Issuing Lender) written notice thereof (including by
way of facsimile).  Each notice shall be
in the form of Exhibit C, appropriately completed (each a “Letter
of Credit Request”) to specify:  (i) the
name of the respective Issuing Lender thereof; (ii) the date of issuance
of such Letter of Credit (which shall be a Business Day); (iii) the
initial Stated Amount of such Letter of Credit; (iv) the beneficiary of
such Letter of Credit and the L/C Supportable Obligations to be supported
thereby; and (v) the stated expiration date of such Letter of Credit.

 

(b)           The making of each
Letter of Credit Request shall be deemed to be a representation and warranty by
the Borrower to the Lenders that such Letter of Credit may be issued in
accordance with, and will not violate the requirements of, Section 2.02.  Unless the respective Issuing Lender has
received notice from the Borrower, any other Credit Party or the Required
Lenders before it issues a Letter of Credit that one or more of the conditions
specified in Section 5 or 6 are not then satisfied, or that
the issuance of such Letter of Credit would violate Section 2.02,
then such Issuing Lender shall, subject to the terms and conditions of this
Agreement, issue the requested Letter of Credit for the account of the Borrower
in accordance with such Issuing Lender’s usual and customary practices.  Upon the issuance of or modification or
amendment to any Letter of Credit, each Issuing Lender shall promptly notify
the Borrower and the Administrative Agent in writing of such issuance,
modification or amendment and such notice shall be accompanied by a copy of
such Letter of Credit or the respective modification or 

 

13

 

amendment thereto, as the case
may be.  Promptly after receipt of such
notice the Administrative Agent shall notify the Participants, in writing, of
such issuance, modification or amendment.

 

(c)           Notwithstanding
anything to the contrary contained in this Agreement, in the event that a
Lender Default exists, no Issuing Lender shall be required to issue any Letter
of Credit unless such Issuing Lender has entered into arrangements satisfactory
to it and the Borrower to eliminate such Issuing Lender’s risk with respect to
the participation in Letters of Credit by the Defaulting Lender or Lenders,
including by cash collateralizing such Defaulting Lender’s or Lenders’ RL
Percentage of the respective Letter of Credit Outstandings.

 

(d)           The initial Stated
Amount of each Letter of Credit shall not be less than $50,000 or such lesser
amount as is acceptable to the respective Issuing Lender.

 

2.04  Letter
of Credit Participations.  (a) Immediately
upon the issuance by an Issuing Lender of any Letter of Credit, such Issuing
Lender shall be deemed to have sold and transferred to each Lender, and each
Lender (in its capacity under this Section 2.04, a “Participant”)
shall be deemed irrevocably and unconditionally to have purchased and received
from such Issuing Lender, without recourse or warranty, an undivided interest
and participation, to the extent of such Participant’s RL Percentage in such Letter
of Credit, each drawing or payment made thereunder and the obligations of the
Borrower under this Agreement with respect thereto, and any security therefor
or guaranty pertaining thereto.  Upon any
change in the RL Percentages of the Lenders pursuant to Section 1.13
or 13.04(b), it is hereby agreed that, with respect to all outstanding
Letters of Credit and Unpaid Drawings relating thereto, there shall be an
automatic adjustment to the participations pursuant to this Section 2.04
to reflect the new RL Percentages of the respective Lender or Lenders.

 

(b)           In determining whether
to pay under any Letter of Credit, no Issuing Lender shall have any obligation
relative to the other Lenders other than to confirm that any documents required
to be delivered under such Letter of Credit appear to have been delivered and
that they appear to substantially comply on their face with the requirements of
such Letter of Credit.  Any action taken
or omitted to be taken by an Issuing Lender under or in connection with any
Letter of Credit issued by it shall not create for such Issuing Lender any
resulting liability to the Borrower, any other Credit Party, any Lender or any
other Person unless such action is taken or omitted to be taken with gross
negligence or willful misconduct on the part of such Issuing Lender (as
determined by a court of competent jurisdiction in a final and non-appealable
decision).

 

(c)           (i) In the event
that an Issuing Lender makes any payment under any Letter of Credit issued by
it and the Borrower shall not have reimbursed such amount in full to such
Issuing Lender pursuant to Section 2.05(a), such Issuing Lender
shall promptly notify the Administrative Agent, which shall promptly notify
each relevant Participant of such failure, and each such Participant shall
promptly and unconditionally pay to such Issuing Lender the amount of such
Participant’s RL Percentage of such unreimbursed payment in Dollars and in same
day funds.  If the Administrative Agent
so notifies, prior to 12:00 Noon (New York time) on any Business Day, any
Participant required to fund a payment under a Letter of Credit, such
Participant shall make available to the respective Issuing Lender in Dollars
such Participant’s RL Percentage of the amount of such payment on such Business
Day in same day funds.  If and to 

 

14

 

the extent such Participant
shall not have so made its RL Percentage of the amount of such payment
available to the respective Issuing Lender, such Participant agrees to pay to
such Issuing Lender, forthwith on demand such amount, together with interest
thereon, for each day from such date until the date such amount is paid to such
Issuing Lender at the overnight Federal Funds Rate for the first three days and
at the interest rate applicable to Revolving Loans that are maintained as Base
Rate Loans for each day thereafter.  The
failure of any such Participant to make available to an Issuing Lender its RL
Percentage of any payment under any Letter of Credit issued by such Issuing
Lender shall not relieve any such other Participant of its obligation hereunder
to make available to such Issuing Lender its RL Percentage of any payment under
any Letter of Credit on the date required, as specified above, but no such
Participant shall be responsible for the failure of any such other Participant
to make available to such Issuing Lender such other Participant’s RL Percentage
of any such payment.

 

(d)           Whenever an Issuing
Lender receives a payment of a reimbursement obligation as to which it has
received any payments from the respective Participants pursuant to clause (c) above,
such Issuing Lender shall pay to each such Participant which has paid its RL
Percentage in Dollars and in same day funds, an amount equal to such
Participant’s share (based upon the proportionate aggregate amount originally
funded by such Participant to the aggregate amount funded by all such
Participants) of the principal amount of such reimbursement obligation and
interest thereon accruing after the funding of the respective participations.

 

(e)           Upon the request of any
Participant, each Issuing Lender shall furnish to such Participant copies of
any Letter of Credit issued by it and such other documentation as may
reasonably be requested by such Participant.

 

(f)            The obligations of the
Participants to make payments to each Issuing Lender with respect to Letters of
Credit shall be irrevocable and not subject to any qualification or exception
whatsoever and shall be made in accordance with the terms and conditions of this
Agreement under all circumstances, including, without limitation, any of the
following circumstances:

 

(i)            any
lack of validity or enforceability of this Agreement or any of the other Credit
Documents;

 

(ii)           the
existence of any claim, setoff, defense or other right which the Borrower or
any of its Subsidiaries may have at any time against a beneficiary named in a
Letter of Credit, any transferee of any Letter of Credit (or any Person for
whom any such transferee may be acting), the Administrative Agent, any
Participant, or any other Person, whether in connection with this Agreement,
any Letter of Credit, the transactions contemplated herein or any unrelated
transactions (including any underlying transaction between the Borrower or any
Subsidiary of the Borrower and the beneficiary named in any such Letter of
Credit);

 

(iii)          any
draft, certificate or any other document presented under any 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;

 

15

 

(iv)          the
surrender or impairment of any security for the performance or observance of
any of the terms of any of the Credit Documents; or

 

(v)           the
occurrence of any Default or Event of Default.

 

2.05  Agreement
to Repay Letter of Credit Drawings.  (a) Subject
to the provisions of Section 2.05(b) below, the Borrower agrees to
reimburse each Issuing Lender, by making payment to such Issuing Lender for any
payment or disbursement made by such Issuing Lender under any Letter of Credit
issued by it (each such amount, so paid until reimbursed by the Borrower, an “Unpaid
Drawing”), not later than one Business Day following receipt by the
Borrower of notice of such payment or disbursement (provided that no
such notice shall be required to be given if a Default or an Event of Default
under Section 10.05 shall have occurred and be continuing, in which
case the Unpaid Drawing shall be due and payable immediately without presentment,
demand, protest or notice of any kind (all of which are hereby waived by the
Borrower)), with interest on the amount so paid or disbursed by such Issuing
Lender, to the extent not reimbursed prior to 12:00 Noon (New York time)
on the date of such payment or disbursement, from and including the date paid
or disbursed to but excluding the date such Issuing Lender was reimbursed by
the Borrower therefor at a rate per annum equal to the Base Rate in effect from
time to time; provided, however, to the extent such amounts are
not reimbursed prior to 12:00 Noon (New York time) on the third Business Day
following the receipt by the Borrower of notice of such payment or disbursement
or following the occurrence of a Default or an Event of Default under Section 10.05,
interest shall thereafter accrue on the amounts so paid or disbursed by such
Issuing Lender (and until reimbursed by the Borrower) at a rate per annum equal
to the Base Rate in effect from time to time plus 2.00%, with such interest to
be payable on demand.  Each Issuing
Lender shall give the Borrower and the Administrative Agent prompt written
notice of each Drawing under any Letter of Credit issued by it, provided
that the failure to give any such notice shall in no way affect, impair or
diminish the Borrower’s obligations hereunder.

 

(b)           The obligations of the
Borrower under this Section 2.05 to reimburse each Issuing Lender
with respect to drafts, demands and other presentations for payment under
Letters of Credit issued by it (each a “Drawing”) (including, in each
case, interest thereon) shall be absolute and unconditional under any and all
circumstances and irrespective of any setoff, counterclaim or defense to
payment which the Borrower or any of its Subsidiaries may have or have had
against any Lender (including in its capacity as an Issuing Lender or as a
Participant), including, without limitation, any defense based upon the failure
of any drawing under a Letter of Credit to conform to the terms of the Letter
of Credit or any nonapplication or misapplication by the beneficiary of the
proceeds of such Drawing; provided, however, that the Borrower
shall not be obligated to reimburse any Issuing Lender for any wrongful payment
made by such Issuing Lender under a Letter of Credit issued by it as a result
of acts or omissions constituting willful misconduct or gross negligence on the
part of such Issuing Lender (as determined by a court of competent jurisdiction
in a final and non-appealable decision).

 

2.06  Increased
Costs.  If at any time after the Effective
Date, the introduction of or any change in any applicable law, rule,
regulation, order, guideline or request or in the interpretation or
administration thereof by the NAIC or any governmental authority charged with
the interpretation or administration thereof, or compliance by any Issuing
Lender or any 

 

16

 

Participant with any
request or directive by the NAIC or by any such governmental authority (whether
or not having the force of law), shall either (i) impose, modify or make
applicable any reserve, deposit, capital adequacy or similar requirement
against letters of credit issued by any Issuing Lender or participated in by
any Participant, or (ii) impose on any Issuing Lender or any Participant
any other conditions relating, directly or indirectly, to this Agreement or any
Letter of Credit; and the result of any of the foregoing is to increase the
cost to any Issuing Lender or any Participant of issuing, maintaining or
participating in any Letter of Credit, or reduce the amount of any sum received
or receivable by any Issuing Lender or any Participant hereunder or reduce the
rate of return on its capital with respect to Letters of Credit (except for (x) taxes
with respect to which additional amounts are paid pursuant to Section 4.04
or (y) changes in the rate of tax on, or determined by reference to, the
net income or net profits (or any franchise or similar tax imposed in lieu of a
net income or net profits tax) of such Issuing Lender or such Participant
pursuant to the laws of the jurisdiction in which it is organized or in which
its principal office or applicable lending office is located or any subdivision
thereof or therein), then, upon the delivery of the certificate referred to
below to the Borrower by any Issuing Lender or any Participant (a copy of
which certificate shall be sent by such Issuing Lender or such Participant to
the Administrative Agent), the Borrower agrees to pay to such Issuing Lender or
such Participant such additional amount or amounts as will compensate such
Issuing Lender or such Participant for such increased cost or reduction in the
amount receivable or reduction on the rate of return on its capital.  Any Issuing Lender or any Participant, upon
determining that any additional amounts will be payable pursuant to this Section 2.06,
will give prompt written notice thereof to the Borrower, which notice shall
include a certificate submitted to the Borrower by such Issuing Lender or such
Participant (a copy of which certificate shall be sent by the Issuing Lender or
such Participant to the Administrative Agent), setting forth in reasonable
detail the basis for the calculation of such additional amount or amounts
necessary to compensate such Issuing Lender or such Participant.  The certificate required to be delivered
pursuant to this Section 2.06 shall, absent manifest error, be
final and conclusive and binding on the Borrower.

 

SECTION 3.           Commitment
Commission; Fees; Reductions of Commitment.

 

3.01  Fees.  (a) The Borrower agrees to pay to the
Administrative Agent for distribution to each Non-Defaulting Lender a
commitment commission (the “Commitment Commission”) for the period from
and including the Effective Date to and including the Revolving Loan Maturity
Date (or such earlier date on which the Total Revolving Loan Commitment has
been terminated) computed at a rate per annum equal to the Applicable
Commitment Commission Percentage on the daily average Unutilized Revolving Loan
Commitment of such Non-Defaulting Lender as in effect from time to time.  Accrued Commitment Commission shall be due
and payable quarterly in arrears on each Quarterly Payment Date and on the date
upon which the Total Revolving Loan Commitment is terminated.

 

(b)           The Borrower agrees to
pay to the Administrative Agent for distribution to each Lender (based on each
such Lender’s respective RL Percentage) a fee in respect of each Letter of
Credit (the “Letter of Credit Fee”) for the period from and including
the date of issuance of such Letter of Credit to and including the date of
termination or expiration of such Letter of Credit, computed at a rate per
annum equal to the Applicable Margin with respect to Revolving Loans that are
maintained as Eurodollar Loans on the daily Stated Amount of each such Letter
of Credit.  Accrued Letter of Credit Fees
shall be due and payable quarterly in arrears 

 

17

 

on each Quarterly Payment Date
and on the first day on or after the termination of the Total Revolving Loan
Commitment upon which no Letters of Credit remain outstanding.

 

(c)           The Borrower agrees to
pay to each Issuing Lender, for its own account, a facing fee in respect of
each Letter of Credit issued by it (the “Facing Fee”) for the period
from and including the date of issuance of such Letter of Credit to and
including the date of termination or expiration of such Letter of Credit,
computed at a rate per annum equal to 1/8 of 1% on the daily Stated Amount of
such Letter of Credit, provided that in any event the minimum amount of
Facing Fees payable in any twelve-month period for each Letter of Credit shall
be not less than $500; it being agreed that, on the day of issuance of any
Letter of Credit and on each anniversary thereof prior to the termination or
expiration of such Letter of Credit, if $500 will exceed the amount of Facing
Fees that will accrue with respect to such Letter of Credit for the immediately
succeeding twelve-month period, the full $500 shall be payable on the date of
issuance of such Letter of Credit and on each such anniversary thereof.  Except as otherwise provided in the proviso
to the immediately preceding sentence, accrued Facing Fees shall be due and
payable quarterly in arrears on each Quarterly Payment Date and upon the first
day on or after the termination of the Total Commitment, upon which no Letters
of Credit remain outstanding.

 

(d)           The Borrower agrees to
pay to each Issuing Lender, for its own account, upon each payment under,
issuance of, or amendment or extension to, any Letter of Credit issued by it,
such amount as shall at the time of such event be the administrative charge and
the reasonable expenses which such Issuing Lender is generally imposing in
connection with such occurrence with respect to letters of credit.

 

(e)           The Borrower agrees to
pay to the Administrative Agent (and/or its respective affiliates) such fees as
may be agreed to in writing from time to time by the Borrower or any of its
Subsidiaries and the Administrative Agent (and/or its respective affiliates).

 

3.02  Voluntary
Termination of Unutilized Commitments. 
(a) Upon at least three Business Days’ prior written notice to the
Administrative Agent at the Notice Office (which notice the Administrative
Agent shall promptly transmit to each of the Lenders), the Borrower shall have
the right, at any time or from time to time, without premium or penalty, to
terminate the Total Unutilized Revolving Loan Commitment in whole, or reduce it
in part in an integral multiple of $1,000,000, provided that each such
reduction shall apply proportionately to permanently reduce the Revolving Loan
Commitment of each Lender.

 

(b)           In the event of a
refusal by a Lender to consent to certain proposed changes, waivers, discharges
or terminations with respect to this Agreement which have been approved by the
Required Lenders as (and to the extent) provided in Section 13.12(b),
the Borrower may, subject to its compliance with the requirements of Section 13.12(b),
upon five Business Days’ prior written notice to the Administrative Agent at
the Notice Office (which notice the Administrative Agent shall promptly
transmit to each of the Lenders) terminate the Revolving Loan Commitment of
such Lender as provided in Section 13.12(b), so long as all
Revolving Loans, together with accrued and unpaid interest, Fees and all other
amounts, owing to such Lender (including all amounts, if any, owing pursuant to
Section 1.11) are repaid concurrently with the effectiveness of
such termination pursuant to Section 4.01(b) (at which 

 

18

 

time Schedule I shall be
deemed modified to reflect such changed amounts) and such Lender’s RL
Percentage of all outstanding Letters of Credit are cash collateralized by the
Borrower in a manner reasonably satisfactory to the Administrative Agent and
the respective Issuing Lenders, and at such time, such Lender shall no longer
constitute a “Lender” for purposes of this Agreement, except with
respect to indemnifications under this Agreement (including, without
limitation, Sections 1.10, 1.11, 2.06, 4.04, 12.06
and 13.01), which shall survive as to such repaid Lender.

 

3.03  Mandatory
Reduction of Commitments.  (a) The
Total Revolving Loan Commitment (and the Revolving Loan Commitment of each
Lender) shall terminate in its entirety on April 30, 2008, unless the
Effective Date has occurred on or prior to such date.

 

(b)           In addition to any
other mandatory commitment reductions pursuant to this Section 3.03,
the Total Revolving Loan Commitment (and the Revolving Loan Commitment of each
Lender) shall terminate in its entirety upon the earlier of (i) the
Revolving Loan Maturity Date and (ii) unless the Required Lenders
otherwise agree in writing, the date on which a Change of Control occurs.

 

(c)           In addition to any
other mandatory commitment reductions pursuant to this Section 3.03,
on each date on or after the Effective Date upon which the Borrower or any of
its Subsidiaries receives any cash proceeds from any issuance or incurrence by
the Borrower or any of its Subsidiaries of Indebtedness for borrowed money
(other than Indebtedness for borrowed money permitted to be incurred pursuant
to Section 9.04 as in effect on the Effective Date), the Total
Revolving Loan Commitment shall be permanently reduced in an amount equal to
100% of the Net Debt Proceeds of the respective issuance or incurrence of
Indebtedness.

 

(d)           In addition to any
other mandatory commitment reductions pursuant to this Section 3.03,
on each date on or after the Effective Date upon which the Borrower or any of
its Subsidiaries receives any cash proceeds from any Asset Sale, the Total
Revolving Loan Commitment shall be permanently reduced in an amount equal to
100% of the Net Sale Proceeds therefrom; provided, however, the
Total Revolving Loan Commitment shall not be required to be so reduced on such
date so long as no Specified Default or Event of Default then exists or would
result from such Asset Sale and such Net Sale Proceeds shall be used to
purchase assets (other than working capital unless purchased as part of a
Permitted Acquisition) used or to be used in the businesses permitted pursuant
to Section 9.12 (including funding of Permitted Acquisitions)
within 270 days following the date of such Asset Sale, and provided  further,
that if all or any portion of such Net Sale Proceeds not required to be so
applied as provided above in this Section 3.03(d) are not so
reinvested within such 270-day period (or such earlier date, if any, as the
Borrower determines not to reinvest the Net Sale Proceeds from such Asset Sale
as set forth above), such amount shall be applied on the last day of such
period (or such earlier date, as the case may be) to permanently reduce the
Total Revolving Loan Commitment as provided above in this Section 3.03(d) without
regard to the preceding proviso.

 

(e)           In addition to any
other mandatory commitment reductions pursuant to this Section 3.03,
within 10 days following each date on or after the Effective Date upon which
the Borrower or any of its Subsidiaries receives any cash proceeds from any
Recovery Event (other than Recovery Events where the Net Insurance Proceeds
therefrom do not exceed 

 

19

 

$250,000), the Total Revolving
Loan Commitment shall be permanently reduced in an amount equal to 100% of the
Net Insurance Proceeds from such Recovery Event; provided, however,
that so long as no Specified Default or Event of Default then exists, the Total
Revolving Loan Commitment shall not be required to be reduced from such Net
Insurance Proceeds within such 10-day period to the extent that the Borrower
has delivered a certificate to the Administrative Agent within such 10-day
period stating that such Net Insurance Proceeds will be used to replace or
restore properties or assets in respect of which such Net Insurance Proceeds
were paid within 270 days following the date of the receipt of such Net
Insurance Proceeds (which certificate shall set forth the estimates of the Net
Insurance Proceeds to be so expended), and provided  further, that
if all or any portion of such Net Insurance Proceeds not required to be so
applied pursuant to the preceding proviso are not so used within 270 days after
the date of the receipt of such Net Insurance Proceeds (or such earlier date,
if any, as the Borrower determines not to reinvest the Net Insurance Proceeds
relating to such Recovery Event as set forth above), such remaining portion
shall be applied on the last day of such period (or such earlier date, as the
case may be) to permanently reduce the Total Revolving Loan Commitment as
provided above in this Section 3.03(e) without regard to the
preceding proviso.

 

(f)            Each reduction to the
Total Revolving Loan Commitment pursuant to this Section 3.03 shall
be applied to proportionately reduce the Revolving Loan Commitment of each
Lender.

 

SECTION 4.           Prepayments;
Payments; Taxes.

 

4.01  Voluntary
Prepayments.  (a) The Borrower
shall have the right to prepay the Loans, without premium or penalty, in whole
or in part at any time and from time to time on the following terms and
conditions:  (i) the Borrower shall
give the Administrative Agent prior to 12:00 Noon (New York time) at the Notice
Office (x) at least one Business Day’s prior written notice (or telephonic
notice promptly confirmed in writing) of its intent to prepay Base Rate Loans
(or same day notice in the case of a prepayment of Swingline Loans) and (y) at
least three Business Days’ prior written notice (or telephonic notice promptly
confirmed in writing) of its intent to prepay Eurodollar Loans, which notice
(in each case) shall specify whether Revolving Loans or Swingline Loans shall
be prepaid, the amount of such prepayment and the Types of Loans to be prepaid
and, in the case of Eurodollar Loans, the specific Borrowing or Borrowings
pursuant to which such Eurodollar Loans were made, and which notice the
Administrative Agent shall, except in the case of a prepayment of Swingline
Loans, promptly transmit to each of the Lenders; (ii) (x) each
partial prepayment of Revolving Loans pursuant to this Section 4.01(a) shall
be in an aggregate principal amount of at least $500,000 (or such lesser amount
as is acceptable to the Administrative Agent) and (y) each partial
prepayment of Swingline Loans pursuant to this Section 4.01(a) shall
be in an aggregate principal amount of at least $250,000 (or such lesser amount
as is acceptable to the Administrative Agent), provided that if any
partial prepayment of Eurodollar Loans made pursuant to any Borrowing shall
reduce the outstanding principal amount of Eurodollar Loans made pursuant to
such Borrowing to an amount less than the Minimum Borrowing Amount applicable
thereto, then such Borrowing may not be continued as a Borrowing of Eurodollar
Loans (and same shall automatically be converted into a Borrowing of Base Rate
Loans) and any election of an Interest Period with respect thereto given by the
Borrower shall have no force or effect; and (iii) each prepayment pursuant
to this Section 4.01(a) in respect of any Revolving Loans made
pursuant to a Borrowing shall be 

 

20

 

applied pro  rata
among such Revolving Loans, provided that at the Borrower’s election in
connection with any prepayment of Revolving Loans pursuant to this Section 4.01(a),
such prepayment shall not, so long as no Default or Event of Default then
exists, be applied to any Revolving Loan of a Defaulting Lender.

 

(b)           In the event of a
refusal by a Lender to consent to certain proposed changes, waivers, discharges
or terminations with respect to this Agreement which have been approved by the
Required Lenders as (and to the extent) provided in Section 13.12(b),
the Borrower may, upon five Business Days’ prior written notice to the
Administrative Agent at the Notice Office (which notice the Administrative
Agent shall promptly transmit to each of the Lenders) repay all Revolving Loans
of such Lender, together with accrued and unpaid interest, Fees, and other
amounts (including all amounts, if any, owing pursuant to Section 1.11)
owing to such Lender in accordance with, and subject to the requirements of, said
Section 13.12(b) so long as (A) (x) the Revolving
Loan Commitment of such Lender is terminated concurrently with such repayment
pursuant to Section 3.02(b) (at which time Schedule I
shall be deemed modified to reflect the changed Revolving Loan Commitments) and
(y) such Lender’s RL Percentage of all outstanding Letters of Credit is
cash collateralized in a manner reasonably satisfactory to the Administrative
Agent and the respective Issuing Lenders, and (B) the consents, if any,
required by Section 13.12(b) in connection with the repayment
pursuant to this clause (b) shall have been obtained.

 

4.02  Mandatory
Repayments.  (a) (i) On any
day on which the sum of (I) the aggregate outstanding principal amount of
all Revolving Loans (after giving effect to all other repayments thereof on
such date), (II) the aggregate outstanding principal amount of all
Swingline Loans (after giving effect to all other repayments thereof on such
date) and (III) the aggregate amount of all Letter of Credit Outstandings
exceeds the Total Revolving Loan Commitment at such time, the Borrower shall
prepay on such day the principal of Swingline Loans and, after all Swingline
Loans have been repaid in full or if no Swingline Loans are outstanding,
Revolving Loans in an amount equal to such excess.  If, after giving effect to the prepayment of
all outstanding Swingline Loans and Revolving Loans, the aggregate amount of
the Letter of Credit Outstandings exceeds the Total Revolving Loan Commitment
at such time, the Borrower shall pay to the Administrative Agent at the Payment
Office on such day an amount of cash and/or Cash Equivalents equal to the
amount of such excess (up to a maximum amount equal to the Letter of Credit
Outstandings at such time), such cash and/or Cash Equivalents to be held as
security for all obligations of the Borrower to the Issuing Lenders and the
Lenders hereunder in a cash collateral account to be established by, and under
the sole dominion and control of, the Administrative Agent.

 

(ii)           On any day on which the sum of (I) the
aggregate outstanding principal amount of all Revolving Loans (after giving
effect to all other repayments thereof on such date) and (II) the
aggregate outstanding principal amount of all Swingline Loans (after giving
effect to all other repayments thereof on such date) exceeds the Maximum
Revolving Loan Amount at such time, the Borrower shall prepay on such date the
principal of Swingline Loans and, after all Swingline Loans have been repaid in
full or if no Swingline Loans are outstanding, Revolving Loans in an amount
equal to such excess.

 

21

 

(b)           With respect to each
repayment of Revolving Loans required by this Section 4.02, the
Borrower may designate the Types of Revolving Loans which are to be repaid and,
in the case of Eurodollar Loans, the specific Borrowing or Borrowings pursuant
to which such Eurodollar Loans were made, provided that:  (i) repayments of Eurodollar Loans
pursuant to this Section 4.02 may only be made on the last day of
an Interest Period applicable thereto unless all Eurodollar Loans with Interest
Periods ending on such date of required repayment and all Base Rate Loans have
been paid in full; (ii) if any repayment of Eurodollar Loans made pursuant
to a single Borrowing shall reduce the outstanding Eurodollar Loans made
pursuant to such Borrowing to an amount less than the Minimum Borrowing Amount
applicable thereto, such Borrowing shall be automatically converted into a
Borrowing of Base Rate Loans; and (iii) each repayment of any Revolving
Loans made pursuant to a Borrowing shall be applied pro rata among such Revolving Loans. 
In the absence of a designation by the Borrower as described in the
preceding sentence, the Administrative Agent shall, subject to the above, make
such designation in its sole discretion.

 

(c)           In addition to any
other mandatory repayments pursuant to this Section 4.02, (i) all
then outstanding Revolving Loans shall be repaid in full on the Revolving Loan
Maturity Date, (ii) all then outstanding Swingline Loans shall be repaid
in full on the Swingline Expiry Date, (iii) unless the Required Lenders
otherwise agree in writing, all then outstanding Loans and other Obligations
shall be repaid in full on the date on which a Change of Control occurs, and (iv) on
each day on which the Corporate Ratings Condition is not met (but only to the
extent that the Corporate Ratings Condition is applicable), the Borrower shall
repay in full all outstanding Loans on such day and pay to the Administrative
Agent at the Payment Office on such day an amount of cash equal to 100% of the
aggregate Stated Amount of all outstanding Letters of Credit to be held as
security for all obligations of the Borrower to the Issuing Lenders in respect
of such Letters of Credit in a cash collateral account to be established by,
and under the sole dominion and control of, the Administrative Agent.

 

(d)           If any Letter of Credit
is outstanding on the 30th day prior to the Revolving Loan Maturity Date (or,
if later, the day on which such Letter of Credit is to be issued hereunder)
which has an expiry date later than the Revolving Loan Maturity Date (or which,
pursuant to its terms, may be extended to a date later than the Revolving Loan
Maturity Date), the Borrower shall, on such 30th day (or such later day, as the
case may be), either (x) pay to the Administrative Agent at the Payment
Office an amount of cash equal to 105% of the aggregate Stated Amount of all
such Letters of Credit to be held as security for all obligations of the
Borrower to the Issuing Lenders in respect of such Letters of Credit in a cash
collateral account to be established by, and under the sole dominion and
control of, the Administrative Agent or (y) deliver to the Administrative
Agent a standby letter of credit (other than a Letter of Credit) in favor of
the Administrative Agent and in a stated amount equal to 105% of the aggregate
Stated Amount of all such Letters of Credit, which standby letter of credit
shall be in form and substance, and issued by a financially sound financial
institution, reasonably acceptable to the Administrative Agent.

 

4.03  Method
and Place of Payment.  Except as
otherwise specifically provided herein, all payments under this Agreement and
under any Note shall be made to the Administrative Agent for the account of the
Lender or Lenders entitled thereto not later than 12:00 Noon (New York time) on
the date when due and shall be made in Dollars in immediately 

 

22

 

available funds at the
Payment Office.  Whenever any payment to
be made hereunder or under any Note shall be stated to be due on a day which is
not a Business Day, the due date thereof shall be extended to the next
succeeding Business Day and, with respect to payments of principal, interest
shall be payable at the applicable rate during such extension.

 

4.04  Net
Payments.  (a) All payments made
by any Credit Party under any Credit Document will be made without setoff,
counterclaim or other defense.  Except as
provided in Section 4.04(b), all such payments will be made free
and clear of, and without deduction or withholding for, any present or future
taxes, levies, imposts, duties, fees, assessments or other charges of whatever
nature now or hereafter imposed by any jurisdiction or by any political
subdivision or taxing authority thereof or therein with respect to such
payments (but excluding, except as provided in the second succeeding sentence,
any tax imposed on or measured by the net income or net profits (or any
franchise or similar tax imposed in lieu of a net income or net profits tax) of
a Lender, an Issuing Lender or the Administrative Agent (each a “Section 4.04
Indemnitee”), as the case may be, pursuant to the laws of the jurisdiction
in which such Section 4.04 Indemnitee is organized or the
jurisdiction in which the principal office or applicable lending office of such
Section 4.04 Indemnitee is located or any subdivision thereof or
therein) and all interest, penalties or similar liabilities with respect to
such non excluded taxes, levies, imposts, duties, fees, assessments or other
charges (all such non-excluded taxes, levies, imposts, duties, fees,
assessments or other charges being referred to collectively as “Taxes”).  If any Taxes are so levied or imposed, the
Borrower and any other Credit Party agrees to pay the full amount of such
Taxes, and such additional amounts as may be necessary so that every payment of
all amounts due under this Agreement or under any other Credit Document to any Section 4.04
Indemnitee, after withholding or deduction for or on account of any Taxes, will
not be less than the amount provided for herein or in such other Credit
Document.  If any amounts are payable in
respect of Taxes pursuant to the preceding sentence, the Borrower and each
other Credit Party jointly and severally agree to reimburse each Section 4.04
Indemnitee, upon the written request of such Section 4.04
Indemnitee, for taxes imposed on or measured by the net income or net profits
(or any franchise or similar tax imposed in lieu of a net income or net profits
tax) of such Section 4.04 Indemnitee pursuant to the laws of the
jurisdiction in which such Section 4.04 Indemnitee is organized or
in which the principal office or applicable lending office of such Section 4.04
Indemnitee is located or under the laws of any political subdivision or taxing
authority of any such jurisdiction in which such Section 4.04
Indemnitee is organized or in which the principal office or applicable lending
office of such Section 4.04 Indemnitee is located and for any
withholding of taxes as such Section 4.04 Indemnitee shall
determine are payable by, or withheld from, such Section 4.04
Indemnitee in respect of such amounts so paid to or on behalf of such Section 4.04
Indemnitee pursuant to the preceding sentence and in respect of any amounts
paid to or on behalf of such Section 4.04 Indemnitee pursuant to
this sentence.  The Borrower will furnish
to the Administrative Agent within 60 days after the date the payment of any
Taxes is due pursuant to applicable law certified copies of tax receipts
evidencing such payment by the Borrower or the respective Credit Party.  The Borrower and each other Credit Party
jointly and severally agree to indemnify and hold harmless each Section 4.04
Indemnitee and reimburse each such Person upon its written request, for the
amount of any Taxes so levied or imposed and paid by each such Person.

 

(b)           Each Non-U.S. Lender
agrees to deliver to the Borrower and the Administrative Agent on or prior to
the Effective Date or, in the case of a Non-U.S. Lender that 

 

23

 

is an assignee or transferee of
an interest under this Agreement pursuant to Section 1.13 or 13.04(b) (unless
the respective Non-U.S. Lender was already a Non-U.S. Lender hereunder
immediately prior to such assignment or transfer), on the date of such
assignment or transfer to such Non-U.S. Lender or, in the case of a successor
Issuing Lender, the date such Issuing Lender becomes an Issuing Lender or, in
the case of a successor Administrative Agent, the date of the appointment of
such Administrative Agent, (i) two accurate and complete original signed
copies of U.S. Internal Revenue Service Form W-8ECI or Form W-8BEN
(with respect to a complete exemption from withholding under an income tax
treaty) (or successor forms) certifying to such Non-U.S. Lender’s entitlement
as of such date to a complete exemption from United States withholding tax with
respect to payments to be made under this Agreement and under any other Credit
Document, or (ii) if the Non-U.S. Lender is not a “bank” within the
meaning of Section 881(c)(3)(A) of the Code and cannot deliver either
U.S. Internal Revenue Service Form W 8ECI or Form W 8BEN (with
respect to a complete exemption from withholding under an income tax treaty)
(or any successor forms) pursuant to clause (i) above, (x) a
certificate substantially in the form of Exhibit D (any such
certificate, a “Section 4.04(b)(ii) Certificate”) and (y) two
accurate and complete original signed copies of U.S. Internal Revenue Service Form W
8BEN (with respect to the portfolio interest exemption) (or successor form)
certifying to such Non-U.S. Lender’s entitlement as of such date to a complete
exemption from United States withholding tax with respect to payments of
interest to be made under this Agreement and under any other Credit
Document.  In addition, each Non-U.S.
Lender agrees that from time to time after the date such Non-U.S. Lender
becomes a party to this Agreement, when a lapse in time or change in
circumstances renders the previous certification obsolete or inaccurate in any
material respect, such Non-U.S. Lender will deliver to the Borrower and the
Administrative Agent two new accurate and complete original signed copies of
U.S. Internal Revenue Service Form W-8ECI, Form W-8BEN (with respect
to the benefits of any income tax treaty), or Form W-8BEN (with respect to
the portfolio interest exemption) and a Section 4.04(b)(ii) Certificate,
as the case may be, and such other forms as may be required in order to confirm
or establish the entitlement of such Non-U.S. Lender to a continued exemption
from or reduction in United States withholding tax with respect to payments
under this Agreement and any other Credit Document, or such Non-U.S. Lender
shall immediately notify the Borrower and the Administrative Agent of its
inability to deliver any such form or Certificate, in which case such Non-U.S.
Lender shall not be required to deliver any such form or Certificate pursuant
to this Section 4.04(b). 
Each U.S. Lender (other than a Lender, an Issuing Lender or the
Administrative Agent, as the case may be, that may be treated as an exempt
recipient based on the indicators described in U.S. Treasury Regulation section
1.6049-4(c)(1)(ii)) agrees to deliver to the Borrower and the Administrative
Agent on or prior to the Effective Date or, in the case of a U.S. Lender that
is an assignee or transferee of an interest under this Agreement pursuant to Section 1.13
or 13.04(b) (unless the respective U.S. Lender was already a U.S.
Lender hereunder immediately prior to such assignment or transfer), on the date
of such assignment or transfer to such U.S. Lender or, in the case of a U.S.
Lender that is a successor Issuing Lender, the date such Issuing Lender becomes
an Issuing Lender or, in the case of a U.S. Lender that is a successor
Administrative Agent, the date of the appointment of such Administrative Agent,
two accurate and complete original signed copies of U.S. Internal Revenue
Service Form W-9 (or successor forms) certifying to such U.S. Lender’s
entitlement as of such date to a complete exemption from United States backup
withholding tax with respect to payments to be made under this Agreement and
under any other Credit Document. 
Notwithstanding anything to the contrary contained in Section 4.04(a),
but 

 

24

 

subject to Section 13.04(b) and
the immediately succeeding sentence, (x) the Borrower shall be entitled,
to the extent it is required to do so by law, to deduct or withhold income
(including income taxes imposed by withholding) or similar taxes imposed by the
United States (or any political subdivision or taxing authority thereof or
therein) from interest, Fees or other amounts payable hereunder for the account
of any Lender, any Issuing Lender or the Administrative Agent, as the case may
be, to the extent that such Lender, such Issuing Lender or such Administrative
Agent, as the case may be, has not provided to the Borrower U.S. Internal
Revenue Service Forms that establish a complete exemption from such deduction
or withholding and (y) the Borrower shall not be obligated pursuant to Section 4.04(a) to
gross-up payments to be made to, or to indemnify, a Lender, an Issuing Lender
or the Administrative Agent, as the case may be, in respect of income
(including income taxes imposed by withholding) or similar taxes imposed by the
United States if (I) such Lender, such Issuing Lender or such
Administrative Agent, as the case may be, has not provided to the Borrower the
U.S. Internal Revenue Service Forms required to be provided to the Borrower
pursuant to this Section 4.04(b) or (II) in the
case of a payment, other than interest, to a Lender, an Issuing Lender or the
Administrative Agent, as the case may be, described in clause (ii) in the
first sentence above in this Section 4.04(b), to the extent that
such forms do not establish a complete exemption from withholding of such
taxes.  Notwithstanding anything to the
contrary contained in the preceding sentence or elsewhere in this Section 4.04
and except as set forth in Section 13.04(b), the Borrower agrees to
pay any additional amounts and to indemnify each Lender and Issuing Lender in
the manner set forth in Section 4.04(a) (without regard to the
identity of the jurisdiction requiring the deduction or withholding) in respect
of any amounts deducted or withheld by it as described in the immediately
preceding sentence (i) as a result of any changes that are effective after
the date such Lender becomes a party to this Agreement in any applicable law,
treaty, governmental rule, regulation, guideline or order, or in the
interpretation thereof, relating to the deducting or withholding of income
(including income taxes imposed by withholding) or similar taxes or (ii) to
the extent such Lender or Issuing Lender is an assignee of another Lender or
Issuing Lender that was entitled, at the time the assignment became effective,
to receive additional amounts under this Section 4.04 (except in
each case to the extent that such Lender or Issuing Lender is legally entitled
to provide a form establishing exemption from withholding of such taxes but
fails to do so).

 

(c)           If the Borrower pays
any additional amount under this Section 4.04 to a Section 4.04
Indemnitee, and such Section 4.04 Indemnitee determines in its sole
good faith discretion that it has actually received or realized in connection
therewith any refund or any reduction of, or credit against, its tax
liabilities in or with respect to the taxable year in which the additional
amount is paid (a “Tax Benefit”), such Section 4.04
Indemnitee shall pay to such Borrower an amount that the Section 4.04
Indemnitee shall, in its sole good faith discretion, determine is equal to the
net benefit, after tax, which was obtained by such Section 4.04
Indemnitee in such year as a consequence of such Tax Benefit; provided, however,
that (i) any Section 4.04 Indemnitee may determine, in its
sole good faith discretion consistent with the policies of such Section 4.04
Indemnitee, whether to seek a Tax Benefit; (ii) any taxes that are imposed
on a Section 4.04 Indemnitee as a result of a disallowance or
reduction, (including through the expiration of any tax credit carryover or
carryback of such Section 4.04 Indemnitee that otherwise would not
have expired) of any Tax Benefit with respect to which such Section 4.04
Indemnitee has made a payment to the Borrower pursuant to this Section 4.04(c) shall
be treated as a Tax for which the Borrower is obligated to indemnify such Section 4.04

 

25

 

Indemnitee pursuant to this Section 4.04
without any exclusions or defenses, (iii) nothing in this Section 4.04(c) shall
require any Section 4.04 Indemnitee to disclose any confidential
information to the Borrower (including, without limitation, its tax returns),
and (iv) no Section 4.04 Indemnitee shall be required to pay
any amounts pursuant to this Section 4.04(c) at any time that
a Default or an Event of Default exists.

 

SECTION 5.           Conditions
Precedent to the Effective Date.  The
occurrence of the Effective Date pursuant to Section 13.10 and the
obligation of each Lender to make Loans, and the obligation of each Issuing
Lender to issue Letters of Credit, on the Effective Date, are subject at the
time of the making of such Loans or the issuance of such Letters of Credit to
the satisfaction of the following conditions:

 

5.01  Execution
of Agreement; Notes.  On or prior to
the Effective Date, (i) this Agreement shall have been executed and
delivered as provided in Section 13.10 and (ii) there shall
have been delivered to the Administrative Agent for the account of each of the
Lenders that has requested same the appropriate Revolving Note executed by the
Borrower and, if requested by the Swingline Lender, the Swingline Note executed
by the Borrower, in each case in the amount, maturity and as otherwise provided
herein.

 

5.02  Officer’s
Certificate.  On the Effective Date,
the Administrative Agent shall have received a certificate, dated the Effective
Date and signed on behalf of the Borrower by the chairman of the board, the
chief executive officer, the chief financial officer, the president or any vice
president of the Borrower, certifying on behalf of the Borrower that all of the
conditions in Sections 5.05, 5.06, 5.07 and 6.01
have been satisfied on such date.

 

5.03  Opinion
of Counsel.  On the Effective Date,
the Administrative Agent shall have received from Weil, Gotshal &
Manges LLP, special counsel to the Credit Parties, an opinion addressed to the
Administrative Agent, the Collateral Agent and each of the Lenders and dated
the Effective Date covering the matters set forth in Exhibit E.

 

5.04  Corporate
Documents; Proceedings; etc.  (a) On
the Effective Date, the Administrative Agent shall have received a certificate
from each Credit Party, dated the Effective Date, signed by the chairman of the
board, the chief executive officer, the president, the chief financial officer
or any vice president of such Credit Party, and attested to by the secretary or
any assistant secretary of such Credit Party, substantially in the form of Exhibit F
with appropriate insertions, together with copies of the certificate or
articles of incorporation and by-laws (or equivalent organizational documents),
as applicable, of such Credit Party and the resolutions of such Credit Party
referred to in such certificate, and each of the foregoing shall be in form and
substance reasonably acceptable to the Agents.

 

(b)           On the Effective Date,
all corporate, partnership, limited liability company and legal proceedings and
all instruments and agreements in connection with the transactions contemplated
by this Agreement and the other Credit Documents shall be reasonably
satisfactory in form and substance to the Agents, and the Administrative Agent
shall have received all information and copies of all documents and papers,
including records of corporate proceedings, governmental approvals, good
standing certificates and bring-down telegrams or facsimiles, if any, which
either Agent may have reasonably requested in connection therewith, such
documents 

 

26

 

and papers where appropriate to
be certified by proper corporate, partnership, limited liability company or
governmental authorities.

 

5.05  Refinancing.  On the Effective Date, all Indebtedness under
the Existing Credit Agreement shall have been repaid in full, all commitments
in respect thereof shall have been terminated and all letters of credit issued
thereunder shall have been terminated (or converted into a Letter of Credit
hereunder) and all Liens and guaranties in connection therewith shall have been
terminated (and all appropriate releases, termination statements or other
instruments of assignment with respect thereto shall have been obtained) to the
reasonable satisfaction of the Agents. 
The Administrative Agent shall have received satisfactory evidence
(including satisfactory pay-off letters, 
intellectual property releases and UCC-3 termination statements) that
the matters set forth in the immediately preceding sentence have been satisfied
as of the Effective Date.

 

5.06  Adverse
Change, Approvals.  (a) Nothing
shall have occurred since December 31, 2007 (and neither any Agent nor the
Required Lenders shall have become aware of any facts or conditions not
previously known to any such Persons) which either Agent or the Required
Lenders shall determine has had, or could reasonably be expected to have, a
Material Adverse Effect.

 

(b)           On or prior to the
Effective Date, all necessary governmental (domestic and foreign) and material
third party approvals and/or consents in connection with the Transaction (and
the payment of all fees, costs and expenses in connection therewith), the other
transactions contemplated hereby and the granting of Liens under the Credit
Documents shall have been obtained and remain in effect, and all applicable
waiting periods with respect thereto shall have expired without any action
being taken by any competent authority which, in the reasonable judgment of
either Agent, restrains, prevents, or imposes materially adverse conditions
upon, the consummation of the Transaction or the other transactions contemplated
by the Credit Documents or otherwise referred to herein or therein.  On the Effective Date, there shall not exist
any judgment, order, injunction or other restraint prohibiting or imposing
materially adverse conditions upon the Transaction or the other transactions
contemplated by the Credit Documents or otherwise referred to herein or
therein.

 

5.07  Litigation.  On the Effective Date, no litigation by any
entity (private or governmental) shall be pending or threatened with respect to
the this Agreement or any other Credit Document or any documentation executed
in connection herewith or therewith, or with respect to the Transaction, or
which either Agent or the Required Lenders shall determine has had, or could
reasonably be expected to have, a Material Adverse Effect.

 

5.08  Pledge
Agreement.  On the Effective Date,
each Credit Party shall have duly authorized, executed and delivered the Pledge
Agreement in the form of Exhibit G (as amended, modified or
supplemented from time to time, the “Pledge Agreement”) and shall have
delivered to the Collateral Agent, as Pledgee thereunder, all of the Pledge
Agreement Collateral, if any, referred to therein and then owned by such Credit
Party, (x) endorsed in blank in the case of promissory notes constituting
Pledge Agreement Collateral and (y) together with executed and undated
endorsements for transfer in the case of equity interests constituting
certificated Pledge Agreement Collateral, along with evidence that all other
actions necessary or, in the reasonable 

 

27

 

opinion of the Collateral
Agent, desirable, to perfect the security interests purported to be created by
the Pledge Agreement have been taken and the Pledge Agreement shall be in full
force and effect.

 

5.09  Subsidiaries
Guaranties.  On the Effective Date,
each Subsidiary Guarantor shall have duly authorized, executed and delivered
the Subsidiaries Guaranty in the form of Exhibit H (as amended,
modified or supplemented from time to time, the “Subsidiaries Guaranty”),
and the Subsidiaries Guaranty shall be in full force and effect.

 

5.10  Security
Agreement.  On the Effective Date,
each Credit Party shall have duly authorized, executed and delivered the
Security Agreement in the form of Exhibit I (as amended, modified
or supplemented from time to time, the “Security Agreement”) covering
all of such Credit Party’s Security Agreement Collateral, together with:

 

(i)            proper
financing statements (Form UCC-1 or the equivalent) for filing under the
UCC or other appropriate filing offices of each jurisdiction as may be
necessary or, in the reasonable opinion of the Collateral Agent, desirable, to
perfect the security interests purported to be created by the Security
Agreement; and

 

(ii)           all
other documents or filings necessary or, in the reasonable opinion of the
Collateral Agent, desirable to perfect and protect the security interests
purported to be created by the Security Agreement,

 

and the Security
Agreement shall be in full force and effect.

 

5.11  Financial
Statements; Projections.  On or prior
to the Effective Date, the Administrative Agent shall have received true and
correct copies of the historical consolidated financial statements and the
Projections referred to in Section 7.05.

 

5.12  Solvency
Certificate; Insurance Certificates. 
On the Effective Date, the Administrative Agent shall have received:

 

(i)            a
solvency certificate from the chief financial officer of the Borrower in the
form of Exhibit J; and

 

(ii)           certificates
of insurance complying with the requirements of Section 8.03 for
the business and properties of the Borrower and its Subsidiaries, in form and
substance reasonably satisfactory to the Agents.

 

5.13  Shareholders’
Agreements; Management Agreements; Tax Sharing Agreements; and Existing
Indebtedness Agreements.  On or prior
to the Effective Date, there shall have been delivered to the Administrative
Agent true and correct copies of the following documents:

 

(i)            all
agreements entered into by the Borrower or any of its Subsidiaries governing
the terms and relative rights of its equity interests and any agreements
entered into by its shareholders relating to any such entity with respect to
its equity interests that 

 

28

 

will remain in place after giving
effect to the Transaction (collectively, the “Shareholders’ Agreements”);

 

(ii)           all
material agreements with members of, or with respect to, the management of the
Borrower or any of its Subsidiaries that will remain in place after giving
effect to the Transaction (collectively, the “Management Agreements”);

 

(iii)          all
tax sharing, tax allocation and other similar agreements entered into by the
Borrower or any of its Subsidiaries that will remain in place after giving
effect to the Transaction (collectively, the “Tax Sharing Agreements”);
and

 

(iv)          all
agreements evidencing or relating to Indebtedness of the Borrower or any of its
Subsidiaries (other than with respect to Capitalized Lease Obligations) which
is to remain outstanding after giving effect to the Transaction (the “Existing
Indebtedness Agreements”);

 

all of which Shareholders’
Agreements, Management Agreements, Tax Sharing Agreements and Existing
Indebtedness Agreements shall be in form and substance reasonably satisfactory
to the Agents and shall be in full force and effect on the Effective Date.

 

5.14  Fees,
etc.  On the Effective Date, all
costs, fees, expenses (including, without limitation, reasonable legal fees and
expenses) and other compensation contemplated hereby, payable to the Agents (and
their respective Affiliates) and the Lenders or otherwise payable in respect of
the Transaction shall have been paid by the Borrower to the extent due and
invoiced.

 

SECTION 6.           Conditions Precedent to All Credit Events. 
The obligation of each Lender to make Loans (including Loans made on the
Effective Date) and the obligation of each Issuing Lender to issue Letters of
Credit (including Letters of Credit issued on the Effective Date), are subject,
at the time of each such Credit Event (except as hereinafter indicated), to the
satisfaction of the following conditions:

 

6.01  No
Default; Representations and Warranties. 
At the time of each such Credit Event and also after giving effect
thereto (i) there shall exist no Default or Event of Default and (ii) all
representations and warranties contained herein and in the other Credit
Documents shall be true and correct in all material respects with the same
effect as though such representations and warranties had been made on the date
of such Credit Event (it being understood and agreed that any representation or
warranty which by its terms is made as of a specified date shall be required to
be true and correct in all material respects only as of such specified date).

 

6.02  Notice
of Borrowing; Letter of Credit Request. 
(a) Prior to the making of each Loan (other than a Swingline Loan
or a Revolving Loan made pursuant to a Mandatory Borrowing), the Administrative
Agent shall have received a Notice of Borrowing meeting the requirements of Section 1.03(a).  Prior to the making of each Swingline Loan,
the Swingline Lender shall have received the notice referred to in Section 1.03(b)(i).

 

29

 

(b)           Prior to the issuance
of each Letter of Credit, the Administrative Agent and the respective Issuing
Lender shall have received a Letter of Credit Request meeting the requirements
of Section 2.03(a).

 

6.03  Corporate
Ratings Condition.  (a) At the
time of the making of each Loan and also after giving effect thereto, the
Corporate Ratings Condition (if applicable) shall be in effect.

 

(b)           At the time of the
issuance of each Letter of Credit and also after giving effect thereto, the
Corporate Ratings Condition (if applicable) shall be in effect unless, prior to
the issuance of the requested Letter of Credit, the Borrower shall have paid to
the Administrative Agent at the Payment Office an amount of cash equal to 100%
of the Stated Amount of such requested Letter of Credit to be held as security
for all obligations of the Borrower to the Issuing Lender in respect of such
Letter of Credit in a cash collateral account to be established by, and under
the sole dominion and control of, the Administrative Agent.

 

The provisions of this Section 6.03 shall only be in effect for so
long as the Corporate Ratings Condition is applicable.

 

The occurrence
of the Effective Date and the acceptance of the benefits of each Credit Event
shall constitute a representation and warranty by the Borrower to the
Administrative Agent and each of the Lenders that all the conditions specified
in Section 5 (with respect to the occurrence of the Effective Date
and any Credit Events on the Effective Date) and in this Section 6
(with respect to Credit Events on or after the Effective Date) and applicable
to such Credit Event are satisfied as of that time.  All of the Notes, certificates, legal
opinions and other documents and papers referred to in Section 5
and in this Section 6, unless otherwise specified, shall be
delivered to the Administrative Agent at the Notice Office for the account of
each of the Lenders and, except for the Notes, in sufficient counterparts or
copies for each of the Lenders and shall be in form and substance reasonably
satisfactory to the Administrative Agent and the Required Lenders.

 

SECTION 7.           Representations, Warranties and Agreements. 
In order to induce the Lenders to enter into this Agreement and to make
the Loans and issue (or participate in) the Letters of Credit, in each case as
provided herein, the Borrower makes the following representations, warranties
and agreements, in each case after giving effect to the Transaction, all of
which shall survive the execution and delivery of this Agreement and the Notes
and the making of the Loans and the issuance of the Letters of Credit, with the
occurrence of the Effective Date and each Credit Event on or after the
Effective Date being deemed to constitute a representation and warranty that
the matters specified in this Section 7 are true and correct in all
material respects on and as of the Effective Date and on the date of each such
other Credit Event (it being understood and agreed that any representation or
warranty which by its terms is made as of a specified date shall be required to
be true and correct in all material respects only as of such specified date).

 

7.01  Organizational
Status.  Each of the Borrower and
each of its Subsidiaries (i) is a duly organized and validly existing
corporation, partnership or limited liability company, as the case may be, in
good standing under the laws of the jurisdiction of its organization, (ii) has

 

30

 

the corporate,
partnership or limited liability company power and authority, as the case may
be, to own its property and assets and to transact the business in which it is
engaged and presently proposes to engage and (iii) is duly qualified and
is authorized to do business and is in good standing in each jurisdiction where
the ownership, leasing or operation of its property or the conduct of its
business requires such qualifications except for failures to be so qualified
which, either individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect.

 

7.02  Power
and Authority.  Each Credit Party has
the corporate, partnership or limited liability company power and authority, as
the case may be, to execute, deliver and perform the terms and provisions of
each of the Credit Documents to which it is party and has taken all necessary
corporate, partnership or limited liability company action, as the case may be,
to authorize the execution, delivery and performance by it of each of such
Credit Documents.  Each Credit Party has
duly executed and delivered each of the Credit Documents to which it is party,
and each of such Credit Documents constitutes its legal, valid and binding
obligation enforceable in accordance with its terms, except to the extent that
the enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws generally affecting creditors’
rights and by equitable principles (regardless of whether enforcement is sought
in equity or at law).

 

7.03  No
Violation.  Neither the execution,
delivery or performance by any Credit Party of the Credit Documents to which it
is a party, nor compliance by it with the terms and provisions thereof, (i) will
contravene any provision of any law, statute, rule or regulation
(including, without limitation, any Health Care Law) or any order, writ,
injunction or decree of any court or governmental instrumentality, (ii) will
conflict with or result in any breach of any of the terms, covenants,
conditions or provisions of, or constitute a default under, or result in the
creation or imposition of (or the obligation to create or impose) any Lien
(except pursuant to the Security Documents) upon any of the property or assets
of any Credit Party or any of its Subsidiaries pursuant to the terms of any
indenture, mortgage, deed of trust, credit agreement or loan agreement, or any
other material agreement, contract or instrument, in each case to which any
Credit Party or any of its Subsidiaries is a party or by which it or any its
property or assets is bound or to which it may be subject (including, without
limitation, from and after the execution and delivery thereof, any Permitted
Subordinated Debt Documents), or (iii) will violate any provision of the
certificate or articles of incorporation, certificate of formation, limited
liability company agreement or by-laws (or equivalent organizational documents),
as applicable, of any Credit Party or any of its Subsidiaries.

 

7.04  Approvals.  No order, consent, approval, license,
authorization or validation of, or filing, recording or registration with
(except for those that have otherwise been obtained or made on or prior to the
Effective Date and which remain in full force and effect on the Effective Date)
or exemption by, any governmental or public body or authority, or any
subdivision thereof, is required to be obtained or made by, or on behalf of, any
Credit Party to authorize, or is required to be obtained or made by, or on
behalf of, any Credit Party in connection with, (i) the execution,
delivery and performance of any Credit Document or (ii) the legality,
validity, binding effect or enforceability of any Credit Document.

 

31

 

7.05  Financial
Statements; Financial Condition; Undisclosed Liabilities; Projections; No
Material Adverse Effect.  (a) The
consolidated balance sheet of the Borrower as at December 31, 2007, and
the related consolidated statements of income, cash flows and retained earnings
of the Borrower for the fiscal year ended December 31, 2007, copies of
which have been furnished to the Lenders prior to the Effective Date, present
fairly in all material respects the consolidated financial position of the
Borrower at the dates of such balance sheet and the consolidated results of the
operations of the Borrower for the period covered thereby.  All of the foregoing historical financial
statements have been prepared in accordance with generally accepted accounting
principles consistently applied.

 

(b)           On and as of the
Effective Date and after giving effect to the Transaction and to all
Indebtedness (including the Loans) being issued, incurred or assumed and Liens
created by the Credit Parties in connection therewith, (i) the sum of the
assets, at a fair valuation, of the Borrower on a stand-alone basis and of the
Borrower and its Subsidiaries taken as a whole will exceed their respective
debts, (ii) each of the Borrower on a stand-alone basis and the Borrower
and its Subsidiaries taken as a whole have not incurred and do not intend to
incur, and do not believe that they will incur, debts beyond their respective
ability to pay such debts as such debts mature, and (iii) the Borrower on
a stand-alone basis and the Borrower and its Subsidiaries taken as a whole will
have sufficient capital with which to conduct their respective businesses.  For purposes of this Section 7.05(b),
“debt” means any liability on a claim, and “claim” means (a) right to
payment, whether or not such a right is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed,
legal, equitable, secured, or unsecured or (b) right to an equitable
remedy for breach of performance if such breach gives rise to a payment,
whether or not such right to an equitable remedy is reduced to judgment, fixed,
contingent, matured, unmatured, disputed, undisputed, secured or unsecured.  The amount of contingent liabilities at any
time shall be computed as the amount that, in the light of all the facts and
circumstances existing at such time, represents the amount that can reasonably
be expected to become an actual or matured liability.

 

(c)           Except as fully disclosed
in the financial statements delivered pursuant to Section 7.05(a),
there were as of the Effective Date no liabilities or obligations with respect
to the Borrower or any of its Subsidiaries of any nature whatsoever (whether
absolute, accrued, contingent or otherwise and whether or not due) which,
either individually or in the aggregate, could reasonably be expected to be
material to the Borrower and its Subsidiaries taken as a whole.  As of the Effective Date, the Borrower does
not know of any basis for the assertion against it or any of its Subsidiaries
of any liability or obligation of any nature whatsoever that is not fully
disclosed in the financial statements delivered pursuant to Section 7.05(a) which,
either individually or in the aggregate, could reasonably be expected to be
material to the Borrower and its Subsidiaries taken as a whole.

 

(d)           The Projections
delivered to the Administrative Agent and the Lenders prior to the Effective
Date have been prepared in good faith and are based on reasonable assumptions,
and there are no statements or conclusions in the Projections which are based
upon or include information known to the Borrower to be misleading in any
material respect or which fail to take into account material information known
to the Borrower regarding the matters reported therein.  On the Effective Date, the Borrower believes
that the Projections are reasonable and attainable, it being recognized by the
Lenders, however, that projections as to 

 

32

 

future events are not to be
viewed as facts and that the actual results during the period or periods
covered by the Projections may differ from the projected results and such
differences may be material.

 

(e)           Since December 31,
2007, there has been no change in the condition (financial or otherwise),
business, operations, property, assets or liabilities of the Borrower or any of
its Subsidiaries that has had, or could reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect.

 

7.06  Litigation.  There are no actions, suits or proceedings
pending or, to the knowledge of the Borrower, threatened (i) with respect
to any Credit Document or (ii) that could reasonably be expected, either
individually or in the aggregate, to have a Material Adverse Effect.

 

7.07  True
and Complete Disclosure.  All factual
information (taken as a whole) furnished by or on behalf of the Borrower in
writing to the Administrative Agent or any Lender (including, without
limitation, all information contained in the Credit Documents) for purposes of
or in connection with the Transaction, this Agreement, the other Credit
Documents or any transaction contemplated herein or therein is, and all other
such factual information (taken as a whole) hereafter furnished by or on behalf
of the Borrower in writing to the Administrative Agent or any Lender will be,
true and accurate in all material respects on the date as of which such
information is dated or certified and not incomplete by omitting to state any
fact necessary to make such information (taken as a whole) not misleading in
any material respect at such time in light of the circumstances under which
such information was provided.

 

7.08  Use of
Proceeds; Margin Regulations.  (a) All
proceeds of the Revolving Loans and the Swingline Loans will be used for the
working capital and general corporate purposes of the Borrower and its
Subsidiaries, including to effect the Refinancing, to pay the fees and expenses
incurred in connection with the Transaction, for Dividends (including share
repurchases) permitted under Section 9.03 and Investments permitted under Section 9.05.

 

(b)           All Letters of Credit
will be used for the purposes described in Section 2.01(a).

 

(c)           Except as otherwise
permitted by Section 9.03, no part of any Credit Event (or the proceeds
thereof) will be used to purchase or carry any Margin Stock or to extend credit
for the purpose of purchasing or carrying any Margin Stock.  Neither the making of any Loan nor the use of
the proceeds thereof nor the occurrence of any other Credit Event will violate
or be inconsistent with the provisions of Regulation T, U or X of the Board of
Governors of the Federal Reserve System.

 

(d)           Except to the extent
permitted by Section 8.17, the fair market value of all Margin Stock owned
by the Borrower and its Subsidiaries (other than the capital stock of the
Borrower held in treasury) does not exceed $5,000,000.  At the time of each Credit Event, not more
than 25% of the value of the assets of the Borrower and its Subsidiaries taken
as a whole (including all capital stock of the Borrower held in treasury) will
constitute Margin Stock.

 

33

 

7.09         Tax Returns and Payments. 
Each of the Borrower and each of its Subsidiaries has timely filed or
caused to be timely filed with the appropriate taxing authority all federal and
other material returns, statements, forms and reports for taxes (the “Returns”)
required to be filed by, or with respect to the income, properties or
operations of, the Borrower and/or any of its Subsidiaries.  The Returns accurately reflect in all
material respects all liability for taxes of the Borrower and its Subsidiaries
for the periods covered thereby.  Each of
the Borrower and each of its Subsidiaries has paid all taxes and assessments
payable by it which have become due, other than (i) those that are
immaterial and (ii) those being contested in good faith and adequately disclosed
and fully provided for on the financial statements of the Borrower and its
Subsidiaries in accordance with generally accepted accounting principles.  There is no action, suit, proceeding,
investigation, audit or claim now pending or, to the best knowledge of the
Borrower, threatened by any authority regarding any material taxes relating to
the Borrower or any of its Subsidiaries. 
As of the Effective Date and except as set forth on Schedule XI, neither
the Borrower nor any of its Subsidiaries has entered into an agreement or
waiver or been requested to enter into an agreement or waiver extending any
statute of limitations relating to the payment or collection of taxes of the
Borrower or any of its Subsidiaries, or is aware of any circumstances that
would cause the taxable years or other taxable periods of the Borrower or any
of its Subsidiaries not to be subject to the normally applicable statute of
limitations.  Neither the Borrower nor
any of its Subsidiaries has incurred, nor will any of them incur, any material
tax liability in connection with the Transaction or any other transactions
contemplated hereby (it being understood that the representation contained in
this sentence does not cover any future tax liabilities of the Borrower or any
of its Subsidiaries arising as a result of the operation of their businesses in
the ordinary course of business).

 

7.10         Compliance with ERISA.  (a) Schedule
III sets forth, as of the Effective Date, the name of each ERISA Plan.  Each ERISA Plan (and each related trust,
insurance contract or fund) is in substantial compliance with its terms and
with all applicable laws, including, without limitation, ERISA and the Code;
each ERISA Plan (and each related trust, if any) which is intended to be
qualified under Section 401(a) of the Code has received a
determination letter from the Internal Revenue Service to the effect that it
meets the requirements of Sections 401(a) and 501(a) of the Code;
neither the Borrower nor any of its Subsidiaries or ERISA Affiliates has ever maintained
or contributed to, or had any obligation to maintain or contribute to (or borne
any liability with respect to) any “employee pension benefit plan,” within the
meaning of Section 3(2) of ERISA, that is a “multiemployer
plan,” within the meaning of Section 3(37) of ERISA, or that is
subject to the minimum funding standards of Section 412 of the Code or Section 302
of ERISA or subject to Title IV of ERISA; all contributions required to be made
with respect to an ERISA Plan have been timely made; neither the Borrower nor
any of its Subsidiaries nor any ERISA Affiliate has incurred any material
liability (including any indirect, contingent or secondary liability) to or on
account of an ERISA Plan pursuant to Section 409, 502(i), 502(l), 515,
4204 or 4212 of ERISA or Section 4975 of the Code or expects to incur any
such material liability under any of the foregoing sections with respect to any
ERISA Plan; no condition exists which presents a material risk to the Borrower
or any of its Subsidiaries or any ERISA Affiliate of incurring a material
liability to or on account of an ERISA Plan pursuant to the foregoing
provisions of ERISA and the Code; no action, suit, proceeding, hearing, audit
or investigation with respect to the administration, operation or the
investment of assets of any ERISA Plan (other than routine claims for benefits)
is pending, expected or threatened which, if adversely determined, could
reasonably be expected to result in a material liability to the Borrower or any
of its Subsidiaries; each group health plan (as defined in Section 607(1) of
ERISA or Section 4980B(g)(2) of the Code) which covers or has covered
employees or former employees of the 

 

34

 

Borrower or any of its
Subsidiaries or ERISA Affiliates has at all times been operated in compliance
with the provisions of Part 6 of subtitle B of Title I of ERISA and Section 4980B
of the Code, except for any failure to so comply which could not, individually
or in the aggregate, reasonably be expected to result in a material liability
of the Borrower or any of its Subsidiaries; no lien imposed under the Code or
ERISA on the assets of the Borrower or any of its Subsidiaries or any ERISA
Affiliate exists or is likely to arise on account of any ERISA Plan; and the
Borrower and its Subsidiaries may cease contributions to or terminate any
employee benefit plan maintained by any of them without incurring any material
liability.

 

(b)           Each Foreign Pension Plan
has been maintained in substantial compliance with its terms and with the
requirements of any and all applicable laws, statutes, rules, regulations and
orders and has been maintained, where required, in good standing with
applicable regulatory authorities.  All
material contributions required to be made with respect to a Foreign Pension
Plan have been timely made.  Neither the
Borrower nor any of its Subsidiaries has incurred any material obligation in
connection with the termination of, or withdrawal from, any Foreign Pension
Plan.  The present value of the accrued
benefit liabilities (whether or not vested) under each Foreign Pension Plan,
determined as of the end of the Borrower’s most recently ended fiscal year on
the basis of actuarial assumptions, each of which is reasonable, did not exceed
the current value of the assets of such Foreign Pension Plan allocable to such
benefit liabilities by a material amount.

 

7.11         The Security Documents.  (a) The
security interests created under the Pledge Agreement in favor of the
Collateral Agent, as Pledgee, for the benefit of the Secured Creditors,
constitute perfected security interests in the Pledge Agreement Collateral
described in the Pledge Agreement, superior to and prior to the rights of all
third Persons, and subject to no security interests of any other Person.  No filings or recordings are required in
order to perfect (or maintain the perfection or priority of) the security
interests created in the Pledge Agreement Collateral under the Pledge
Agreement.

 

(b)           The provisions of the
Security Agreement are effective to create in favor of the Collateral Agent for
the benefit of the Secured Creditors a legal, valid and enforceable security
interest in all right, title and interest of the Credit Parties in the Security
Agreement Collateral described therein, and, upon the proper filing of UCC
financing statements (which filings have been made within 10 days after the
Effective Date or, if later, within 10 days after a Credit Party becomes a
party to the Security Agreement), the Collateral Agent, for the benefit of the
Secured Creditors, will have a fully perfected security interest in all right,
title and interest in all of the Security Agreement Collateral described
therein, superior to and prior to the rights of all third Persons, and subject
to no other Liens other than Permitted Liens. 
Upon the recordation of (x) the Grant of Security Interest in U.S.
Patents, if applicable, and (y) the Grant of Security Interest in U.S.
Trademarks, if applicable, in the respective form attached to the Security Agreement,
in each case in the United States Patent and Trademark Office, together with
filings on Form UCC-1 made pursuant to the Security Agreement, the
security interest created by the Security Agreement in the United States
trademarks and patents covered by the Security Agreement will be
perfected.  Upon the recordation of the
Grant of Security Interest in U.S. Copyrights, if applicable, in the form
attached to the Security Agreement with the United 

 

35

 

States Copyright Office, together with
filings on Form UCC-1 made pursuant to the Security Agreement, the
security interest created by the Security Agreement in the United States
copyrights covered by the Security Agreement will be perfected.

 

(c)           If any Mortgage is executed
and delivered in accordance with Section 8.12, upon the proper
filing of each such Mortgage in the appropriate filing office, each such
Mortgage will create, as security for the obligations purported to be secured
thereby, a valid and enforceable perfected security interest in and mortgage
lien on the respective Mortgaged Property in favor of the Collateral Agent (or
such other trustee as may be required or desired under local law) for the
benefit of the Secured Creditors, superior and prior to the rights of all third
Persons (except that the security interest and mortgage lien created on such
Mortgaged Property may be subject to the Permitted Encumbrances related
thereto) and subject to no other Liens (other than Permitted Liens related thereto).

 

7.12         Properties.  All Real
Property owned or leased by the Borrower or any of its Subsidiaries as of the
Effective Date, and the nature of the interest therein, is correctly set forth
in Schedule IV.  Each of the
Borrower and each of its Subsidiaries has good and marketable title to, or a
validly subsisting leasehold interest in, all material properties owned or
leased by it, including all material property reflected in the most recent
historical balance sheets referred to in Section 7.05(a) (except
as sold or otherwise disposed of since the date of such balance sheet in the
ordinary course of business or as permitted by the terms of this Agreement),
free and clear of all Liens, other than Permitted Liens.

 

7.13         Capitalization. 
On the Effective Date, the authorized capital stock of the Borrower
consists of (i) 100,000,000 shares of Ordinary Common Stock, par value per
share  (“Borrower Common Stock”),  (ii) 40,000,000 shares of Multiple and
Variable Vote Restricted Convertible Common Stock, par value per share $.01,
and (iii) 10,000,000 shares of Preferred stock, par value per share $0.01.
All outstanding shares of the capital stock of the Borrower have been duly and
validly issued and are fully paid and non-assessable.  The Borrower does not have outstanding any
securities convertible into or exchangeable for its capital stock or
outstanding any rights to subscribe for or to purchase, or any options for the
purchase of, or any agreement providing for the issuance (contingent or
otherwise) of, or any calls, commitments or claims of any character relating
to, its capital stock, except for options, rights or warrants that have been
issued or may be issued from time to time to purchase shares of Borrower Common
Stock.

 

7.14         Subsidiaries; etc.  (a) The
Borrower has no Subsidiaries other than (i) those Subsidiaries listed on
Schedule V (which Schedule identifies (x) the direct owner of each such
Subsidiary on the Effective Date and their percentage ownership therein and (y) each
Wholly-Owned Specified Subsidiary) and (ii) new Subsidiaries created or
acquired after the Effective Date in accordance with the terms of this
Agreement.

 

(b)           Schedule V also sets
forth, as of the Effective Date, (i) the exact legal name of each Credit
Party, the type of organization of such Credit Party, whether or not such
Credit Party is a registered organization (within the meaning of the New York
UCC), the jurisdiction of organization of such Credit Party, the location
(within the meaning of the New York UCC) of such Credit Party, and the
organizational identification number (if any) of such Credit Party, and (ii) the
basis for which (x) any Wholly-Owned Specified Subsidiary of the 

 

36

 

Borrower on the Effective Date cannot enter
into any Credit Document and (y) the shares of capital stock of any
Domestic Subsidiary of the Borrower cannot be pledged pursuant to the Pledge
Agreement.

 

7.15         Compliance with Statutes, etc. 
Each of the Borrower and each of its Subsidiaries is in compliance with
all applicable statutes, regulations and orders of, and all applicable
restrictions imposed by, all governmental bodies, domestic or foreign, in
respect of the conduct of its business and the ownership of its property
(including, without limitation, applicable Health Care Laws and statutes,
regulations, orders and restrictions relating to environmental standards and
controls), except such noncompliances as could not, either individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

 

7.16         Investment Company Act. 
Neither the Borrower nor any of its Subsidiaries is an “investment
company” or a company “controlled” by an “investment company,” within the
meaning of the Investment Company Act of 1940, as amended.

 

7.17         Environmental Matters.  (a) Each
of the Borrower and each of its Subsidiaries is in compliance with all
applicable Environmental Laws and the requirements of any permits issued under
such Environmental Laws.  There are no
pending or, to the knowledge of the Borrower, threatened Environmental Claims
against the Borrower or any of its Subsidiaries or any Real Property owned,
leased or operated by the Borrower or any of its Subsidiaries (including any
such claim arising out of the ownership, lease or operation by the Borrower or
any of its Subsidiaries of any Real Property formerly owned, leased or operated
by the Borrower or any of its Subsidiaries but no longer owned, leased or
operated by the Borrower or any of its Subsidiaries).  There are no facts, circumstances, conditions
or occurrences with respect to the business or operations of the Borrower or
any of its Subsidiaries, or any Real Property owned, leased or operated by the
Borrower or any of its Subsidiaries (including any Real Property formerly
owned, leased or operated by the Borrower or any of its Subsidiaries but no
longer owned, leased or operated by the Borrower or any of its Subsidiaries)
or, to the knowledge of the Borrower, any property adjoining or adjacent to any
such Real Property that could be reasonably expected (i) to form the basis
of an Environmental Claim against the Borrower or any of its Subsidiaries or
any Real Property owned, leased or operated by the Borrower or any of its
Subsidiaries or (ii) to cause any Real Property owned, leased or operated
by the Borrower or any of its Subsidiaries to be subject to any restrictions on
the ownership, lease, occupancy or transferability of such Real Property by the
Borrower or any of its Subsidiaries under any applicable Environmental Law.

 

(b)           Hazardous Materials have not
at any time been generated, used, treated or stored on, or transported to or
from, or Released on or from, any Real Property owned, leased or operated by
the Borrower or any of its Subsidiaries or, to the knowledge of the Borrower, any
property adjoining or adjacent to any Real Property, where such generation,
use, treatment, storage, transportation or Release has violated or could be
reasonably expected to violate any applicable Environmental Law or give rise to
an Environmental Claim against the Borrower or any of its Subsidiaries.

 

(c)           Notwithstanding anything to
the contrary in this Section 7.17, the representations and
warranties made in this Section 7.17 shall be untrue only if the
effect of any 

 

37

 

or all conditions, violations, claims,
restrictions, failures and non-compliances of the types described above could,
either individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

 

7.18         Labor Relations. 
Neither the Borrower nor any of its Subsidiaries is engaged in any
unfair labor practice that could, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.  There is (i) no unfair labor practice
complaint pending against the Borrower or any of its Subsidiaries or, to the
knowledge of the Borrower, threatened against any of them, before the National
Labor Relations Board, and no grievance or arbitration proceeding arising out
of or under any collective bargaining agreement is so pending against the
Borrower or any of its Subsidiaries or, to the knowledge of the Borrower,
threatened against any of them, (ii) no strike, labor dispute, slowdown or
stoppage pending against the Borrower or any of its Subsidiaries or, to
the knowledge of the Borrower and the Borrower, threatened against the Borrower
or any of its Subsidiaries and (iii) no union representation question
exists with respect to the employees of the Borrower or any of its
Subsidiaries, except (with respect to any matter specified in clause (i), (ii) or
(iii) above, either individually or in the aggregate) such as could not
reasonably be expected to have a Material Adverse Effect.

 

7.19         Intellectual Property, etc. 
Each of the Borrower and each of its Subsidiaries owns or has the right
to use all the patents, trademarks, permits, domain names, service marks, trade
names, copyrights, licenses, franchises, inventions, trade secrets, proprietary
information and know-how of any type, whether or not written (including, but
not limited to, rights in computer programs and databases) and formulas, or
rights with respect to the foregoing, and has obtained assignments of all
leases, licenses and other rights of whatever nature, necessary for the present
conduct of its business, without any known conflict with the rights of others
which, or the failure to obtain which, as the case may be, could, either
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

 

7.20         Indebtedness.  Schedule
VI sets forth a true and complete list of all Indebtedness (including
Contingent Obligations, but excluding the Loans and the Letters of Credit) of
the Borrower and its Subsidiaries as of the Effective Date (the “Existing
Indebtedness”) and which is to remain outstanding after giving effect to
the Transaction, in each case showing the aggregate principal amount thereof
and the name of the respective borrower and any Credit Party or any of its
Subsidiaries which directly or indirectly guarantees such Indebtedness.

 

7.21         Insurance.  Schedule
VII sets forth a true and complete listing of all insurance maintained by
the Borrower and its Subsidiaries as of the Effective Date, with the amounts
insured (and any deductibles) set forth therein.

 

7.22         Subordination.  After the execution and delivery thereof, each
Permitted Subordinated Debt Document is enforceable against the Borrower, the
applicable Subsidiary Guarantors (if any) and the holders of the Permitted
Subordinated Debt evidenced thereby, and all Obligations hereunder and under
the other Credit Documents are within the definition of “Senior Debt”
(or any relevant similar term) included in the subordination provisions of such
Permitted Subordinated Debt Documents.

 

38

 

7.23         Certain Agreements.  (a) Neither
the Borrower nor any of it Subsidiaries is a party to any agreement or
instrument or subject to any corporate, partnership or limited liability
company restriction, as the case may be, that, either individually or in the
aggregate, has resulted or could reasonably be expected to result in a Material
Adverse Effect.

 

(b)           Neither the Borrower nor any
of its Subsidiaries is in default in any manner under any provision of any
indenture or other agreement or instrument evidencing Indebtedness, or any
other material agreement or instrument to which it is a party or by which it or
any of its properties or assets are or may be bound, if such default, either
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

 

SECTION 8.           Affirmative
Covenants.  The Borrower hereby covenants and agrees that
on and after the Effective Date and until the Total Revolving Loan Commitment
and all Letters of Credit have terminated (or have been cash collateralized or
supported by a backstop letter of credit as provided in Section 4.02(d))
and the Loans, Notes and Unpaid Drawings (in each case together with interest
thereon), Fees and all other Obligations (other than indemnities described in Section 13.13
(and similar indemnities described in the other Credit Documents, in each case)
which are not then due and payable) incurred hereunder and thereunder, are paid
in full:

 

8.01         Information Covenants.  The Borrower will furnish to each Lender:

 

(a)           Quarterly Financial
Statements.  Within 45
days after the close of each of the first three quarterly accounting periods in
each fiscal year of the Borrower, (i) the consolidated balance sheet of
the Borrower and its Subsidiaries as at the end of such quarterly accounting
period and the related consolidated statements of income and retained earnings
and statement of cash flows for such quarterly accounting period and for the
elapsed portion of the fiscal year ended with the last day of such quarterly
accounting period, in each case setting forth comparative figures for the
corresponding quarterly accounting period in the prior fiscal year and
comparable budgeted figures for such quarterly accounting period as set forth
in the respective budget delivered pursuant to Section 8.01(d), all
of which shall be certified by an Authorized Officer of the Borrower that they
fairly present in all material respects in accordance with generally accepted
accounting principles the financial condition of the Borrower and its Subsidiaries
as of the dates indicated and the results of their operations for the periods
indicated, subject to normal year-end audit adjustments and the absence of
footnotes, and (ii) management’s discussion and analysis of the important
operational and financial developments during such quarterly accounting period.

 

(b)           Annual Financial Statements.  Within 90 days after the close of each fiscal
year of the Borrower, (i) the consolidated balance sheet of the Borrower
and its Subsidiaries as at the end of such fiscal year and the related
consolidated statements of income and retained earnings and statement of cash
flows for such fiscal year setting forth comparative figures for the preceding
fiscal year and certified by Ernst & Young LLP or other independent
certified public accountants of recognized national standing reasonably
acceptable to the Administrative Agent, together with a report of such
accounting firm (which report shall be without a “going concern” or like
qualification or 

 

39

 

exception and without any qualification or
exception as to scope of audit) stating that in the course of its regular audit
of the financial statements of the Borrower and its Subsidiaries, which audit
was conducted in accordance with generally accepted auditing standards, such
accounting firm obtained no knowledge of any Default or an Event of Default
relating to financial or accounting matters which has occurred and is
continuing or, if such a Default or an Event of Default was noted and is
continuing, a statement as to the nature thereof, and (ii) management’s
discussion and analysis of the important operational and financial developments
during such fiscal year.

 

(c)           Management Letters.  To the extent not otherwise included in the
Borrower’s applicable Form 10K or Form 10Q filed with the SEC,
promptly after the Borrower’s or any of its Subsidiaries’ receipt thereof, a
copy of any “management letter” received from its certified public accountants
and management’s response thereto.

 

(d)           Budgets.  No later than 60 days following the first day
of each fiscal year of the Borrower, a budget in form reasonably satisfactory
to the Administrative Agent (including budgeted statements of income, sources
and uses of cash and balance sheets for the Borrower and its Subsidiaries on a
consolidated basis) (i) for each of the four quarterly accounting periods
of such fiscal year prepared in detail and (ii) for the two immediately
succeeding fiscal years prepared in summary form, in each case setting forth,
with appropriate discussion, the principal assumptions upon which such budget
is based and a statement by an Authorized Officer of the Borrower to the effect
that the budget is a reasonable estimate for the periods covered thereby.

 

(e)           Officer’s Certificates.  At the time of the delivery of the financial
statements provided for in Sections 8.01 (a) and (b), a
compliance certificate from an Authorized Officer of the Borrower in the form
of Exhibit K certifying on behalf of the Borrower that, to such
officer’s knowledge after due inquiry, no Default or Event of Default has
occurred and is continuing or, if any Default or Event of Default has occurred
and is continuing, specifying the nature and extent thereof, which certificate
shall (i) set forth in reasonable detail the calculations required to
establish whether the Borrower and its Subsidiaries were in compliance with the
provisions of Sections 3.03(d), 3.03(e), 8.15, 9.01(x),
9.01(xix), 9.01(xx), 9.02(v), 9.03(ii),  9.03(iv), 9.04(v), 9.04(ix),
9.04(xii), 9.04(xiii), 9.04(xiv), 9.05(v), 9.05(viii),
9.05(xv), 9.08 and 9.09 at the end of such fiscal quarter
or year, as the case may be, (ii) list all Wholly-Owned Specified
Subsidiaries as of the end of such fiscal quarter or year, as the case may be,
together with a report of (a) the total assets of each such 

Wholly-Owned Specified Subsidiary, (b) the total cash contributed to each
such Wholly-Owned Specified Subsidiary by the Borrower or another Wholly-Owned
Subsidiary thereof during the Test Period covered by such financial statements,
(c) the total cash distributed by each such Wholly-Owned Specified
Subsidiary to the Borrower or another Wholly-Owned Subsidiary thereof during
the Test Period covered by such financial statements, and (d) the basis
for which each such Wholly-Owned Specified Subsidiary cannot enter into any
Credit Document, and (iii) certify that there have been no changes to
Annexes B through E, and Annexes H through J, in each case of the Security
Agreement and Annexes A through F of the Pledge Agreement, in each case since
the Effective Date or, if later, since the date of the most certificate
delivered pursuant to this Section 8.01(e), or if there have been
any such 

 

40

 

changes, a list in reasonable detail of such
changes (but, in each case with respect to this clause (iii), only to the
extent that such changes are required to be reported to the Collateral Agent
pursuant to the terms of such Security Documents) and whether the Borrower and
the other Credit Parties have otherwise taken all actions required to be taken
by them pursuant to such Security Documents in connections with any such
changes.

 

(f)            Notice of Default,
Litigation and Material Adverse Effect.  Promptly, and in any event within three
Business Days after any officer of the Borrower or any of its Subsidiaries
obtains knowledge thereof, notice of (i) the occurrence of any event which
constitutes a Default or an Event of Default, (ii) any litigation or
governmental investigation or proceeding pending against the Borrower or any of
its Subsidiaries (x) which, either individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect or (y) with
respect to any Credit Document, or (iii) any other event, change or
circumstance that has had, or could reasonably be expected to have, a Material
Adverse Effect.

 

(g)           Other Reports and Filings.  Promptly after the filing or delivery
thereof, copies of all financial information, proxy materials and reports, if
any, which the Borrower or any of its Subsidiaries shall publicly file with the
Securities and Exchange Commission or any successor thereto (the “SEC”)
or deliver to holders (or any trustee, agent or other representative therefor)
of any Permitted Subordinated Debt or any other material Indebtedness pursuant
to the terms of the documentation governing such Indebtedness.

 

(h)           Environmental Matters.  Promptly after any officer of the Borrower or
any of its Subsidiaries obtains knowledge thereof, notice of one or more of the
following environmental matters to the extent that such environmental matters,
either individually or when aggregated with all other such environmental
matters, could reasonably be expected to have a Material Adverse Effect:

 

(i)            any pending or threatened
Environmental Claim against the Borrower or any of its Subsidiaries or any Real
Property owned, leased or operated by the Borrower or any of its Subsidiaries;

 

(ii)           any condition or occurrence
on or arising from any Real Property owned, leased or operated by the Borrower
or any of its Subsidiaries that (a) results in noncompliance by the
Borrower or any of its Subsidiaries with any applicable Environmental Law or (b) could
reasonably be expected to form the basis of an Environmental Claim against the
Borrower or any of its Subsidiaries or any such Real Property;

 

(iii)          any condition or occurrence
on any Real Property owned, leased or operated by the Borrower or any of its
Subsidiaries that could reasonably be expected to cause such Real Property to
be subject to any restrictions on the ownership, lease, occupancy, use or
transferability by the Borrower or any of its Subsidiaries of such Real
Property under any Environmental Law; and

 

41

 

(iv)          the taking of any removal or remedial action in response to
the actual or alleged presence of any Hazardous Material on any Real Property
owned, leased or operated by the Borrower or any of its Subsidiaries as
required by any Environmental Law or any governmental or other administrative
agency; provided that in any event the Borrower shall deliver to each
Lender all notices received by the Borrower or any of its Subsidiaries from any
government or governmental agency under, or pursuant to, CERCLA which identify
the Borrower or any of its Subsidiaries as potentially responsible parties for
remediation costs or which otherwise notify the Borrower or any of its
Subsidiaries of potential liability under CERCLA.

 

All such notices shall describe in reasonable detail
the nature of the claim, investigation, condition, occurrence or removal or
remedial action and the Borrower’s or such Subsidiary’s response thereto.

 

(i)            Corporate Ratings.  Promptly upon, and in any event within three
Business Days after, any officer of the Borrower obtains knowledge of any
change in the Corporate Rating by Moody’s or S&P, notice of such change and
the effective date thereof.

 

(j)            Other Information.  From time to time, such other information or
documents (financial or otherwise) with respect to the Borrower or any of its
Subsidiaries as the Administrative Agent or any Required Lenders (through the
Administrative Agent) may reasonably request.

 

8.02         Books,
Records and Inspections; Annual Meetings. 
(a) The Borrower will, and will cause each of its Subsidiaries to,
keep proper books of record and accounts in which full, true and correct
entries which permit the preparation of financial statements in accordance with
generally accepted accounting principles and which conform to all requirements
of law shall be made of all dealings and transactions in relation to its
business and activities.  The Borrower
will, and will cause each of its Subsidiaries to, permit officers and
designated representatives of either Agent or the Required Lenders to visit and
inspect, under guidance of officers of the Borrower or such Subsidiary, any of
the properties of the Borrower or such Subsidiary, and to examine the books of
account of the Borrower or such Subsidiary and discuss the affairs, finances
and accounts of the Borrower or such Subsidiary with, and be advised as to the
same by, its and their officers and independent accountants, all upon
reasonable prior notice and at such reasonable times and intervals and to such
reasonable extent as either Agent or the Required Lenders may reasonably
request; provided, however, so long as no Event of Default
exists, the Required Lenders (but not the Agents) shall be limited to one such
visit in any fiscal year of the Borrower.

 

(b)           At a date to be mutually agreed upon between the
Administrative Agent and the Borrower occurring on or prior to the 120th day
after the close of each fiscal year of the Borrower, the Borrower will, at the
request of the Administrative Agent, hold a meeting (which meeting, to the
extent agreed to by the Administrative Agent, may be by teleconference) with
all of the Lenders at which meeting will be reviewed the financial results of
the Borrower and its 

 

42

 

Subsidiaries for the previous fiscal year and
the budgets presented for the current fiscal year of the Borrower.

 

8.03         Maintenance
of Property; Insurance.  (a) The
Borrower will, and will cause each of its Subsidiaries to, (i) keep all
property necessary to the business of the Borrower and its Subsidiaries in good
working order and condition, ordinary wear and tear excepted, (ii) maintain
with financially sound and reputable insurance companies insurance on all such
property and against all such risks as is consistent and in accordance with
industry practice for companies similarly situated owning similar properties
and engaged in similar businesses as the Borrower and its Subsidiaries, and (iii) furnish
to the Administrative Agent, upon its request therefor, full information as to
the insurance carried.  Such insurance
shall include physical damage insurance on all real and personal property
(whether now owned or hereafter acquired) on an all risk basis.  The provisions of this Section 8.03
shall be deemed supplemental to, but not duplicative of, the provisions of any
Security Documents that require the maintenance of insurance.

 

(b)           The Borrower will, and will cause each of the other Credit
Parties to, keep its property insured in favor of the Collateral Agent, and all
policies or certificates (or certified copies thereof) with respect to such
insurance (and any other insurance maintained by (or on behalf of) the Borrower
and/or such other Credit Party) (i) shall name the Collateral Agent as
loss payee and/or additional insured, (ii) shall state that such insurance
policies shall not be canceled without at least 30 days’ prior written notice
thereof by the respective insurer to the Collateral Agent (or at least 10 days’
prior written notice in the case of non-payment of premium), (iii) shall
provide that the respective insurers irrevocably waive any and all rights of
subrogation with respect to the Collateral Agent and the other Secured
Creditors, and (iv) in the case of insurance certificates only, shall be
deposited with the Collateral Agent.

 

(c)           If the Borrower or any of its Subsidiaries shall fail to
maintain insurance in accordance with this Section 8.03, or if the
Borrower or any of its Subsidiaries shall fail to so endorse and deposit all
policies or certificates with respect thereto, the Administrative Agent shall
have the right (but shall be under no obligation) to procure such insurance and
the Borrower agrees to reimburse the Administrative Agent for all costs and
expenses of procuring and maintaining such insurance.

 

8.04         Existence;
Franchises.  The Borrower will, and
will cause each of its Subsidiaries to, do or cause to be done, all things
necessary to preserve and keep in full force and effect its existence and its
material rights, franchises, licenses, permits, copyrights, trademarks and
patents; provided, however, that nothing in this Section 8.04
shall prevent (i) sales of assets and other transactions by the Borrower
or any of its Subsidiaries in accordance with Section 9.02 or (ii) the
withdrawal by the Borrower or any of its Subsidiaries of its qualification as a
foreign corporation, partnership or limited liability company, as the case may
be, in any jurisdiction if such withdrawal could not, either individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

 

8.05         Compliance
with Statutes, etc.  The Borrower
will, and will cause each of its Subsidiaries to, comply with all applicable
statutes, regulations and orders of, and all applicable restrictions imposed
by, all governmental bodies, domestic or foreign, in respect of the conduct of
its business and the ownership of its property (including applicable statutes,
regulations, 

 

43

 

orders and restrictions
relating to Health Care Laws and environmental standards and controls), except
such noncompliances as could not, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

8.06         Compliance
with Environmental Laws.  (a) The
Borrower will comply, and will cause each of its Subsidiaries to comply, with
all Environmental Laws and permits applicable to, or required by, the
ownership, lease or use of its Real Property now or hereafter owned, leased or
operated by the Borrower or any of its Subsidiaries, except such
non-compliances as could not, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, and will promptly pay
or cause to be paid all costs and expenses incurred in connection with such
compliance, and will keep or cause to be kept all such Real Property free and
clear of any Liens imposed pursuant to such Environmental Laws.  Neither the Borrower nor any of its
Subsidiaries will generate, use, treat, store, Release or dispose of, or permit
the generation, use, treatment, storage, Release or disposal of Hazardous
Materials on any Real Property now or hereafter owned, leased or operated by
the Borrower or any of its Subsidiaries, or transport or permit the
transportation of Hazardous Materials to or from any such Real Property, except
for Hazardous Materials generated, used, treated, stored, Released or disposed
of at any such Real Properties in compliance in all material respects with all
applicable Environmental Laws and as required in connection with the normal operation,
use and maintenance of the business or operations of the Borrower or any of its
Subsidiaries.

 

(b)           (i)  After the receipt by the Administrative Agent or
any Lender of any notice of the type described in Section 8.01(h), (ii) at
any time that the Borrower or any of its Subsidiaries are not in compliance
with Section 8.06(a) or (iii) in the event that the
Administrative Agent or the Lenders have exercised any of the remedies pursuant
to the last paragraph of Section 10, the Borrower will (in each case)
provide, at the sole expense of the Borrower and at the request of the
Administrative Agent, an environmental site assessment report concerning any
Real Property owned, leased or operated by the Borrower or any of its
Subsidiaries, prepared by an environmental consulting firm reasonably approved
by the Administrative Agent, indicating the presence or absence of Hazardous
Materials and the potential cost of any removal or remedial action in
connection with such Hazardous Materials on such Real Property.  If the Borrower fails to provide the same
within 30 days after such request was made, the Administrative Agent may order
the same, the cost of which shall be borne by the Borrower, and the Borrower
shall grant and hereby grants to the Administrative Agent and the Lenders and
their respective agents access to such Real Property and specifically grants
the Administrative Agent and the Lenders an irrevocable non-exclusive license,
subject to the rights of tenants, to undertake such an assessment at any reasonable
time upon reasonable notice to the Borrower, all at the sole expense of the
Borrower.

 

8.07         ERISA.  As soon as possible and, in any event, within
ten (10) days after the Borrower or any of its Subsidiaries or any ERISA
Affiliate knows or has reason to know of the occurrence of any of the
following, the Borrower will deliver to each of the Lenders a certificate of a
Financial Officer of the Borrower setting forth the full details as to such
occurrence and the action, if any, that the Borrower, such Subsidiary or such
ERISA Affiliate is required or proposes to take, together with any notices
required or proposed to be given or filed by the Borrower, such Subsidiary, the
ERISA Plan administrator or such ERISA Affiliate to or with the PBGC or any
other governmental agency, or an ERISA Plan participant and any notices
received by the 

 

44

 

Borrower, such Subsidiary
or such ERISA Affiliate from the PBGC or any other government agency, or an
ERISA Plan participant with respect thereto: 
that a Reportable Event has occurred (except to the extent that the
Borrower has previously delivered to the Lenders a certificate and notices (if
any) concerning such event pursuant to the next clause hereof); that a
contributing sponsor (as defined in Section 4001(a)(13) of ERISA) of an
ERISA Plan subject to Title IV of ERISA is subject to the advance reporting
requirement of PBGC Regulation Section 4043.61 (without regard to
subparagraph (b)(1) thereof), and an event described in subsection .62,
..63, .64, .65, .66, .67 or .68 of PBGC Regulation Section 4043 is
reasonably expected to occur with respect to such ERISA Plan within the
following 30 days; that an accumulated funding deficiency, within the meaning
of Section 412 of the Code or Section 302 of ERISA, has been incurred
or an application may be or has been made for a waiver or modification of the
minimum funding standard (including any required installment payments) or an
extension of any amortization period under Section 412 of the Code or Section 303
or 304 of ERISA with respect to an ERISA Plan; that any contribution required
to be made with respect to an ERISA Plan or Foreign Pension Plan has not been
timely made; that an ERISA Plan has been or may be terminated, reorganized,
partitioned or declared insolvent under Title IV of ERISA; that an ERISA Plan
has an Unfunded Current Liability; that proceedings may be or have been
instituted to terminate or appoint a trustee to administer an ERISA Plan which
is subject to Title IV of ERISA; that a proceeding has been instituted pursuant
to Section 515 of ERISA to collect a delinquent contribution to an ERISA
Plan; that the Borrower or any of its Subsidiaries or any ERISA Affiliate will
or may incur any material liability (including any indirect, contingent, or
secondary liability) to or on account of the termination of or withdrawal from
an ERISA Plan under Section 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of
ERISA or with respect to an ERISA Plan under Section 436(f), 4971, 4975 or
4980 of the Code or Section 409, 502(i) or 502(l) of ERISA or
with respect to a group health plan (as defined in Section 607(1) of
ERISA or Section 4980B(g)(2) of the Code) under Section 4980B of
the Code; or that the Borrower or any of its Subsidiaries may incur any
material liability pursuant to any employee welfare benefit plan (as defined in
Section 3(1) of ERISA) that provides benefits to retired employees or
other former employees (other than as required by Section 601 of ERISA) or
any ERISA Plan or any Foreign Pension Plan. 
The Borrower will deliver to each of the Lenders copies of any records,
documents or other information that must be furnished to the PBGC with respect
to any ERISA Plan pursuant to Section 4010 of ERISA.  At the request of any Lender, the Borrower
will also deliver to such Lender a complete copy of the annual report (on
Internal Revenue Service Form 5500-series) of each ERISA Plan (including,
to the extent required, the related financial and actuarial statements and
opinions and other supporting statements, certifications, schedules and
information) required to be filed with the Internal Revenue Service.  In addition to any certificates or notices
delivered to the Lenders pursuant to the first sentence hereof, copies of
annual reports and any records, documents or other information required to be
furnished to the PBGC or any other governmental agency, and any material
notices received by the Borrower, any of its Subsidiaries or any ERISA
Affiliate with respect to any ERISA Plan or Foreign Pension Plan or received
from any governmental agency or plan administrator or sponsor or trustee with
respect to any multiemployer plan (as defined in Section 4001(a)(3) of
ERISA), shall be delivered to the Lenders no later than ten (10) days
after the date such records, documents and/or information has been furnished to
the PBGC or any other governmental agency or such notice has been received by
the Borrower, the respective Subsidiary or the ERISA Affiliate, as applicable.  The Borrower will ensure, and cause each of
its applicable 

 

45

 

Subsidiaries to ensure,
that all Foreign Pension Plans administered by it or into which it makes
payments obtains or retains (as applicable) registered status under and as
required by applicable law and is administered in a timely manner in all
respects in compliance with all applicable laws except where the failure to do
any of the foregoing could not, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

8.08         End
of Fiscal Years; Fiscal Quarters. 
The Borrower will cause (i) each of its, and each of its
Subsidiaries, fiscal years to end on December 31 of each year and (ii) each
of its, each of its Subsidiaries, fiscal quarters to end on March 31, June 30,
September 30 and December 31 of each year; provided, however,
(x) one or more of the Subsidiaries of the Borrower existing on the
Effective Date may have a fiscal year that ends on September 30, (y) one
or more of such Subsidiaries may elect to change their fiscal year end to December 31
and (z) one or more of the Subsidiaries of the Borrower acquired pursuant
to a Permitted Acquisition after the Effective Date may have a fiscal year that
ends on a date other than December 31 of each year and may have fiscal
quarters that end on dates other than March 31, June 30, September 30
and December 31 of each year.

 

8.09         Performance
of Obligations.  The Borrower will,
and will cause each of its Subsidiaries to, perform all of its obligations
under the terms of each mortgage, indenture, security agreement, loan agreement
or credit agreement and each other agreement, lease, contract or instrument by
which it is bound, except such non-performances as could not, either
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

 

8.10         Payment
of Taxes.  The Borrower will pay and
discharge, and will cause each of its Subsidiaries to pay and discharge, all
taxes, assessments and governmental charges or levies imposed upon it or upon
its income or profits or upon any properties belonging to it, in each case on a
timely basis, and all lawful claims which, if unpaid, might become a Lien or
charge upon any properties of the Borrower or any of its Subsidiaries not otherwise
permitted under Section 9.01(i); provided that neither the
Borrower nor any of its Subsidiaries shall be required to pay any such tax,
assessment, charge, levy or claim which is immaterial or is being contested in
good faith and by proper proceedings if it has maintained adequate reserves
with respect thereto in accordance with generally accepted accounting
principles.

 

8.11         Use
of Proceeds.  The Borrower will use
the proceeds of the Loans and the Letters of Credit only as provided in Section 7.08.

 

8.12         Additional
Security; Further Assurances; etc.  (a) Except
as otherwise provided in Section 9.13 and for Wholly-Owned
Specified Subsidiaries (for so long as (and to the extent that) such Persons
constitute Wholly-Owned Specified Subsidiaries), the Borrower will, and will
cause each of its Wholly-Owned Domestic Subsidiaries to, grant to the
Collateral Agent for the benefit of the Secured Creditors security interests
and Mortgages in such assets and properties of the Borrower and such
Wholly-Owned Domestic Subsidiaries as are not covered by the original Security
Documents and as may be reasonably requested from time to time by the
Administrative Agent or the Required Lenders (collectively, the “Additional
Security Documents”); provided, however, neither the Borrower
nor any Wholly-Owned Domestic Subsidiary of the Borrower will be required to
grant a Mortgage on any owned Real Property pursuant to this Section 8.12(a) unless
the fair market value (as determined in good faith by the 

 

46

 

Borrower) of such
Mortgaged Property equals or exceeds $1,000,000.  All such security interests and Mortgages
shall be granted pursuant to documentation reasonably satisfactory in form and
substance to the Administrative Agent and shall constitute, after appropriate
filings have been made (to the extent required to be so made), valid and
enforceable perfected security interests and Mortgages superior to and prior to
the rights of all third Persons and subject to no other Liens except for
Permitted Liens.  The Additional Security
Documents or instruments related thereto shall have been duly recorded or filed
in such manner and in such places as are required by law to establish, perfect,
preserve and protect the Liens in favor of the Collateral Agent required to be
granted pursuant to the Additional Security Documents and all taxes, fees and
other charges payable in connection therewith shall have been paid in full.

 

(b)           The Borrower will, and will cause each of the other Credit
Parties to, at the expense of the Borrower, make, execute, endorse,
acknowledge, file and/or deliver to the Collateral Agent from time to time such
vouchers, invoices, schedules, confirmatory assignments, conveyances, financing
statements, transfer endorsements, powers of attorney, certificates, real
property surveys, reports, landlord waivers, bailee agreements, control
agreements and other assurances or instruments and take such further steps
relating to the Collateral covered by any of the Security Documents as the
Collateral Agent may reasonably require. 
Furthermore, the Borrower will, and will cause the other Credit Parties
to, deliver to the Collateral Agent such opinions of counsel, title insurance
and other related documents as may be reasonably requested by the
Administrative Agent to assure itself that this Section 8.12 has
been complied with.

 

(c)           If the Administrative Agent or the Required Lenders
reasonably determine that they are required by law or regulation to have
appraisals prepared in respect of any Real Property of the Borrower and its
Subsidiaries constituting Collateral, the Borrower will, at its own expense,
provide to the Administrative Agent appraisals which satisfy the applicable
requirements of the Real Estate Appraisal Reform Amendments of the Financial
Institution Reform, Recovery and Enforcement Act of 1989, as amended, and which
shall otherwise be in form and substance reasonably satisfactory to the
Administrative Agent.

 

(d)           (i)  The Borrower will cause each Wholly-Owned
Specified Subsidiary of the Borrower (whether existing on the Effective Date or
thereafter created, established or acquired) that has not entered into any
Credit Document because to have done so either (x) would have violated a
law, regulation, rule, order, approval, license or other restriction applicable
to such Wholly-Owned Specified Subsidiary and issued or imposed by any
governmental authority or (y) would have reasonably been expected to cause
such Wholly-Owned Subsidiary to fail to satisfy a net worth, net equity or
capital requirement or similar calculation or requirement imposed on such
Wholly-Owned Subsidiary by any governmental authority having jurisdiction of
such Wholly-Owned Subsidiary due to the regulated nature of such Wholly-Owned
Subsidiary’s operations, in either case to, upon such restrictions ceasing to
(or to the extent that such restrictions do not) apply to such Wholly-Owned
Specified Subsidiary, execute and deliver to the Collateral Agent counterparts
of the Security Agreement, the Pledge Agreement and the Subsidiaries Guaranty
(to the extent that any such Credit Documents were not theretofore entered into
by such Wholly-Owned Specified Subsidiary), together with all other relevant
documentation (including opinions of counsel, resolutions, officers’
certificates and UCC financing statements) of the type described in Section 5

 

47

 

as such Wholly-Owned Specified Subsidiary
would have had to deliver if it executed such Credit Documents on the Effective
Date (after which time such Wholly-Owned Specified Subsidiary shall cease to
constitute same); provided, however, no Wholly-Owned Foreign
Subsidiary of the Borrower shall be required to take any actions pursuant to
this Section 8.12(d)(i) except to the extent required by Section 8.13.

 

(ii)           To the extent that the capital stock or other equity
interests of any Subsidiary of the Borrower have not theretofore been pledged
to the Collateral Agent under the Pledge Agreement because to have done so
would have violated a law, regulation, rule, order, approval, license or other
restriction applicable to such Subsidiary and issued or imposed by any
governmental authority due to the regulated nature of such Subsidiary’s
operations, the Borrower will, or will cause the other applicable Credit Party
to, upon such restrictions ceasing to apply to such Subsidiary, pledge and
deliver to the Collateral Agent pursuant to, and to the extent required by, the
Pledge Agreement the capital stock or other equity interests of any such
Subsidiary.

 

(e)           The Borrower agrees that each action required by clauses (a) through
(d) of this Section 8.12 shall be completed as soon as
possible, but in no event later than 30 days (or 10 days in the case of
preceding clause (d)) after such action is required to be taken or is requested
to be taken by the Administrative Agent or the Required Lenders, as the case
may be; provided that, in no event will the Borrower or any of its
Subsidiaries be required to take any action, other than using its commercially
reasonable efforts, to obtain consents from third parties with respect to its
compliance with this Section 8.12.

 

(f)            No later than 30 days after the Effective Date (as such
date may be extended by the Collateral Agent in its sole discretion), the Borrower
will deliver to the Collateral Agent fully executed bank account control
agreements, in form and substance reasonably satisfactory to the Collateral
Agent, with respect to the initial Primary Concentration Accounts.

 

8.13         Foreign
Subsidiaries Security.  Following a
change in the relevant sections of the Code or the regulations, rules, rulings,
notices or other official pronouncements issued or promulgated thereunder, with
respect to any Foreign Subsidiary of the Borrower which has not already had all
of its stock pledged pursuant to the Pledge Agreement, the Administrative Agent
may request in writing that the Borrower deliver to the Administrative Agent
within 30 days after such request evidence reasonably satisfactory to the
Administrative Agent that (i) a pledge of 66% or more of the total
combined voting power of all classes of capital stock of such Foreign
Subsidiary entitled to vote, (ii) the entering into by such Foreign
Subsidiary of a security agreement in substantially the form of the Security
Agreement and (iii) the entering into by such Foreign Subsidiary of a
guaranty in substantially the form of the Subsidiaries Guaranty, in any such
case would no longer reasonably be expected to cause (x) any undistributed
earnings of such Foreign Subsidiary as determined for Federal income tax
purposes to be treated as a deemed dividend to such Foreign Subsidiary’s United
States parent for Federal income tax purposes or (y) other materially
adverse Federal income tax consequences to the Credit Parties, and, to the
extent such evidence is so delivered (or no evidence to the contrary is
delivered within such 30-day period) the Borrower will, at the written request
of the Administrative Agent or the Required Lenders, take one or more of the
actions described in the immediately 

 

48

 

succeeding sentence.  Provided that the actions set forth in
clauses (i) through (iii) above would not cause the conditions set
forth in either clause (x) or (y) above to be met, then within 45
days after the Administrative Agent’s request, (I) the Borrower will, or
will cause its applicable Subsidiary to, pledge that portion of each such
Foreign Subsidiary’s outstanding capital stock not theretofore pledged pursuant
to the Pledge Agreement to the Collateral Agent for the benefit of the Secured
Creditors pursuant to the Pledge Agreement (or another pledge agreement in
substantially similar form, if needed), (II) the Borrower will cause each
such Foreign Subsidiary (to the extent that it is a Wholly-Owned Subsidiary) to
execute and deliver the Security Agreement and the Pledge Agreement (or another
security agreement or pledge agreement in substantially similar form, if
needed), granting the Secured Creditors a security interest in all of each such
Foreign Subsidiary’s assets and securing the Obligations of the Borrower under
the Credit Documents, under any Interest Rate Protection Agreement or Other
Hedging Agreement and under any Secured Cash Management Arrangement and, in the
event the Subsidiaries Guaranty shall have been executed by such Foreign
Subsidiary, the obligations of such Foreign Subsidiary thereunder, and (III) the
Borrower will cause each such Foreign Subsidiary (to the extent it is a
Wholly-Owned Subsidiary) to execute and deliver the Subsidiaries Guaranty (or
another guaranty in substantially similar form, if needed), guaranteeing the
Obligations of the Borrower under the Credit Documents, under any Interest Rate
Protection Agreement or Other Hedging Agreement and under any Secured Cash
Management Arrangement, in each case to the extent that the entering into the
Security Agreement, Pledge Agreement or Subsidiaries Guaranty is permitted by
the laws of the respective foreign jurisdiction and with all documents
delivered pursuant to this Section 8.13 to be in form and substance
reasonably satisfactory to the Administrative Agent.

 

8.14         Ownership
of Subsidiaries; etc.  Except (i) for
non-Wholly-Owned Subsidiaries existing as of the Effective Date or (ii) as
otherwise permitted by Sections 9.05(xiv) and (xv) and the
definition of Permitted Acquisition, the Borrower will, and will cause each of
its Subsidiaries to, either solely or together with one or more other
Wholly-Owned Subsidiaries, own 100% of the capital stock and other equity
interests of each of their Subsidiaries (other than, in the case of a Foreign
Subsidiary, directors’ qualifying shares and nominal shares held by local
nationals, in each case to the extent required by applicable law).

 

8.15         Permitted
Acquisitions.  (a) Subject to
the provisions of this Section 8.15 and the requirements contained
in the definition of Permitted Acquisition, the Borrower and each of its
Wholly-Owned Subsidiaries that are Subsidiary Guarantors may from time to time
effect Permitted Acquisitions, so long as (in each case except to the extent
the Required Lenders otherwise specifically agree in writing in the case of a
specific Permitted Acquisition):  (i) no
Default or Event of Default shall have occurred and be continuing at the time
of the consummation of the proposed Permitted Acquisition or immediately after
giving effect thereto; (ii) the Borrower shall have given to the
Administrative Agent at least 5 Business Days’ prior written notice of any
Permitted Acquisition (or such shorter period of time as may be reasonably
acceptable to the Administrative Agent), which notice shall describe in
reasonable detail the principal terms and conditions of such Permitted
Acquisition; (iii) the Administrative Agent and the Lenders shall have
received, to the extent available, audited year end financial statements for at
least the previous fiscal year and interim unaudited quarterly financial
statements for the then current fiscal year of the Acquired Entity or Business
being acquired pursuant to such proposed Permitted Acquisition, although to the
extent that such audited year end financial statements are 

 

49

 

not available, the
Administrative Agent shall be reasonably satisfied with the form and scope of
all financial statements for such Acquired Entity of Business for the then most
recently ended fiscal year of such Acquired Entity or Business and for the then
current fiscal year of such Acquired Entity or Business; (iv) calculations
are made by the Borrower with respect to the financial covenants contained in Sections
9.08 and 9.09 for the respective Calculation Period on a Pro  Forma
Basis as if the respective Permitted Acquisition (as well as all other
Permitted Acquisitions theretofore consummated after the first day of such
Calculation Period) had occurred on the first day of such Calculation Period,
and such calculations shall show that such financial covenants would have been
complied with as of the last day of such Calculation Period; (v) all of the
representations and warranties contained herein and in the other Credit
Documents shall be true and correct in all material respects with the same
effect as though such representations and warranties had been made on and as of
the date of such Permitted Acquisition (both before and after giving effect
thereto), unless stated to relate to a specific earlier date, in which case
such representations and warranties shall be true and correct in all material
respects as of such earlier date; (vi) after giving effect to such
proposed Permitted Acquisition and the payment of all amounts (including fees
and expenses) owing in connection therewith, the sum of the Total Unutilized
Revolving Loan Amount then in effect plus the aggregate amount of all
Unrestricted cash and Cash Equivalents of the Borrower and the Subsidiary
Guarantors at such time shall equal or exceed the sum of (I) $50,000,000
plus (II) an amount equal to the aggregate amount reasonably likely to be
payable within the 12 months following such Permitted Acquisition in respect of
all post-closing purchase price adjustments, earn-out payments, non-compete
payments and/or deferred purchase payments (or similar payments), in each case
required or which will be required in connection with such Permitted Acquisition
(and all other Permitted Acquisitions for which such purchase price adjustments
and other payments may be required to be made) as determined by the Borrower in
good faith; and (vii) the Borrower shall have delivered to the
Administrative Agent (with copies for each Lender) a certificate executed by
one of its Authorized Officers certifying compliance with the requirements of
preceding clauses (i) through (vi), inclusive (to the extent applicable),
and containing the calculations (in reasonable detail) required by preceding
clauses (iv) and (vi); provided, however, the provisions of
clauses (ii) and (iii) above shall not be applicable to Permitted
Acquisitions in which the Maximum Permitted Consideration is less than
$25,000,000.

 

(b)           At the time of each Permitted Acquisition involving the
creation or acquisition of a Subsidiary, or the acquisition of capital stock or
other equity interest of any Person, the capital stock or other equity
interests thereof created or acquired in connection with such Permitted
Acquisition shall be pledged for the benefit of the Secured Creditors pursuant
to (and to the extent required by) the Pledge Agreement.

 

(c)           The Borrower will cause each Wholly-Owned Domestic
Subsidiary and, to the extent required by Section 8.13, each
Wholly-Owned Foreign Subsidiary, in each case which is formed to effect, or is
acquired pursuant to, a Permitted Acquisition to comply with, and to execute
and deliver all of the documentation as and to the extent required by, Sections
8.12 and 9.13, to the reasonable satisfaction of the Administrative
Agent.

 

(d)           The consummation of each Permitted Acquisition shall be
deemed to be a representation and warranty by the Borrower that the
certifications pursuant to this Section 8.15 are true and correct and
that all conditions thereto have been satisfied (or waived, to the extent 

 

50

 

applicable, in a prior writing by the
Required Lenders) and that same is permitted in accordance with the terms of
this Agreement, which representation and warranty shall be deemed to be a
representation and warranty for all purposes hereunder, including, without
limitation, Sections 7 and 10.

 

8.16         Cash
Management System; etc.  The Borrower
and its Wholly-Owned Subsidiaries shall maintain a cash management system in a
manner and following procedures consistent with their past business practices,
which cash management system, in any event, shall provide that all available
cash of the Borrower and the Subsidiary Guarantors (other than (i) nominal
amounts of cash, (ii) Restricted cash and (iii) cash required to be
maintained at Subsidiary Guarantors in order to (but only to the extent
required to) maintain capital or net worth requirements imposed on such
Subsidiary Guarantors by governmental authorities due to the regulated nature
of such Subsidiary Guarantors’ operations) be swept on a daily basis to one of
the Primary Concentration Accounts in which the Collateral Agent has “control”
over within the meaning of Section 9-104 of the New York UCC.

 

8.17         Margin
Regulations.  Except as provided in
the second succeeding sentence, the Borrower will take all actions so that at
all times the fair market value of all Margin Stock owned by the Borrower and
its Subsidiaries (other than capital stock of the Borrower held in treasury)
shall not exceed $5,000,000.  So long as
the covenant contained in the immediately preceding sentence is complied with,
all Margin Stock at any time owned by the Borrower and its Subsidiaries will
not constitute Collateral and no security interest shall be granted therein
pursuant to any Credit Document.  If at
any time the fair market value of all Margin Stock owned by the Borrower and
its Subsidiaries (other than capital stock of the Borrower held in treasury)
exceeds $5,000,000, then (x) all Margin Stock owned by the Credit Parties
(other than capital stock of the Borrower held in treasury) shall be pledged,
and delivered for pledge, pursuant to the Pledge Agreement and (y) the
Borrower will execute and deliver to the Lenders appropriate completed forms
(including, without limitation, Forms G-3 and U-1, as appropriate) establishing
compliance with Regulations T, U and X. 
If at any time any Margin Stock is required to be pledged as a result of
the provisions of the immediately preceding sentence, repayments of outstanding
Obligations shall be required, and subsequent Credit Events shall be permitted,
only in compliance with the applicable provisions of Regulations T, U and X.

 

SECTION 9.           Negative
Covenants.  The Borrower hereby
covenants and agrees that on and after the Effective Date and until the Total
Revolving Loan Commitment and all Letters of Credit have terminated (or have
been cash collateralized or supported by a backstop letter of credit as
provided in Section 4.02(d)) and the Loans, Notes and Unpaid
Drawings (in each case, together with interest thereon), Fees and all other
Obligations (other than any indemnities described in Section 13.13
which are not then due and payable) incurred hereunder and thereunder, are paid
in full:

 

9.01         Liens.  The Borrower will not, and will not permit
any of its Subsidiaries to, create, incur, assume or suffer to exist any Lien
upon or with respect to any property or assets (real or personal, tangible or
intangible) of the Borrower or any of its Subsidiaries, whether now owned or
hereafter acquired, or sell any such property or assets subject to an
understanding or agreement, contingent or otherwise, to repurchase such
property or assets (including sales of accounts receivable with recourse to the
Borrower or any of its Subsidiaries), or assign any right 

 

51

 

to receive income or
permit the filing of any financing statement under the UCC or any other similar
notice of Lien under any similar recording or notice statute; provided
that the provisions of this Section 9.01 shall not prevent the
creation, incurrence, assumption or existence of the following (Liens described
below are herein referred to as “Permitted Liens”):

 

(i)            inchoate Liens for taxes,
assessments or governmental charges or levies not yet due or Liens for taxes,
assessments or governmental charges or levies that are immaterial in amount or
are being contested in good faith and by appropriate proceedings for which adequate
reserves have been established in accordance with generally accepted accounting
principles;

 

(ii)           Liens in respect of property or
assets of the Borrower or any of its Subsidiaries imposed by law, which were
incurred in the ordinary course of business and do not secure Indebtedness for
borrowed money, such as carriers’, warehousemen’s, materialmen’s, repairmen’s,
supplier’s and mechanics’ liens and other similar Liens arising in the ordinary
course of business, and (x) which do not in the aggregate materially
detract from the value of the Borrower’s and its Subsidiaries’ property or
assets taken as a whole or materially impair the use thereof in the operation
of the business of the Borrower and its Subsidiaries taken as a whole or (y) which
are being contested in good faith by appropriate proceedings, which proceedings
have the effect of preventing the forfeiture or sale of the property or assets
subject to any such Lien;

 

(iii)          Liens in existence on the Effective
Date which are listed, and the property subject thereto described, in Schedule
VIII, but only to the respective date, if any, set forth in such Schedule
VIII for the removal, replacement and termination of any such Liens, plus
renewals, replacements and extensions of such Liens to the extent set forth on
such Schedule VIII  provided that (x) the aggregate principal
amount of the Indebtedness, if any, secured by such Liens does not increase
from that amount outstanding at the time of any such renewal, replacement or
extension and (y) any such renewal, replacement or extension does not
encumber any additional assets or properties of the Borrower or any of its
Subsidiaries;

 

(iv)          Liens created pursuant to the Security
Documents;

 

(v)           licenses, sublicenses, leases or
subleases granted to other Persons not materially interfering with the conduct
of the business of the Borrower or any of its Subsidiaries;

 

(vi)          Liens upon assets of the Borrower or
any of its Subsidiaries subject to Capitalized Lease Obligations to the extent
such Capitalized Lease Obligations are permitted by Section 9.04(v),
provided that (x) such Liens only serve to secure the payment of
Indebtedness arising under such Capitalized Lease Obligation and (y) the
Lien encumbering the asset giving rise to the Capitalized Lease Obligation does
not encumber any other asset of the Borrower or any Subsidiary;

 

(vii)         purchase money security interests in
Real Property acquired after the Effective Date or with respect to improvements
thereto, and Liens placed upon 

 

52

 

equipment acquired after the Effective Date
and used in the ordinary course of business of the Borrower or any of its
Subsidiaries and (in each case) placed at the time of the acquisition (or
construction) thereof by the Borrower or such Subsidiary or within
270 days thereafter to secure Indebtedness incurred to pay all or a
portion of the purchase (or construction) price thereof or to secure
Indebtedness incurred solely for the purpose of financing the acquisition (or
construction) of any such Real Property (or improvements thereto) or equipment
or extensions, renewals or replacements of any of the foregoing for the same or
a lesser amount, provided that (x) the Indebtedness secured by such
Liens is permitted by Section 9.04(v) and (y) in all
events, the Lien encumbering the Real Property (or improvements thereto) or
equipment so acquired (or constructed) does not encumber any other asset of the
Borrower or any of its Subsidiaries;

 

(viii)        easements, rights-of-way, restrictions,
encroachments and other similar charges or encumbrances, and minor title
deficiencies, in each case not securing Indebtedness and not materially
interfering with the conduct of the business of the Borrower or any of its
Subsidiaries;

 

(ix)           Liens arising from precautionary UCC
financing statement filings regarding operating leases entered into in the
ordinary course of business;

 

(x)            Liens arising out of the existence
of judgments or awards in respect of which the Borrower or any of its
Subsidiaries shall in good faith be prosecuting an appeal or proceedings for
review and in respect of which there shall have been secured a subsisting stay
of execution pending such appeal or proceedings, provided that the
aggregate amount of all cash (including the stated amount of all letters of
credit) and the fair market value of all other property subject to such Liens
does not exceed $15,000,000 at any time outstanding;

 

(xi)           statutory and common law landlords’
liens under leases to which the Borrower or any of its Subsidiaries is a party;

 

(xii)          Liens (other than Liens imposed under
ERISA) incurred in the ordinary course of business in connection with workers
compensation claims, unemployment insurance, social security benefits and other
similar forms of governmental insurance benefits and (y) deposits securing
the performance of bids, tenders, leases (other than Capitalized Lease
Obligations) and contracts (other than Indebtedness) in the ordinary course of
business, statutory obligations, surety bonds, performance bonds and other obligations
of a like nature incurred in the ordinary course of business (exclusive of
obligations in respect of the payment for borrowed money);

 

(xiii)         Permitted Encumbrances;

 

(xiv)        Liens on property or assets acquired
pursuant to a Permitted Acquisition, or on property or assets of a Subsidiary
of the Borrower in existence at the time such Subsidiary is acquired pursuant
to a Permitted Acquisition, provided that (x) any Indebtedness that
is secured by such Liens is permitted to exist under Section 9.04(ix),
and (y) such Liens are not incurred in connection with, or in
contemplation or 

 

53

 

anticipation of, such Permitted Acquisition
and do not attach to any other asset of the Borrower or any of its Subsidiaries;

 

(xv)         customary Liens in favor of banking
institutions encumbering deposits (including the right of set-off) held by such
banking institutions incurred in the ordinary course of business;

 

(xvi)        Liens solely in the nature of
restrictions imposed on certain Subsidiaries of the Borrower by governmental
authorities to maintain certain levels of capital or net worth requirements due
to the regulated nature of such Subsidiaries’ operations;

 

(xvii)       deposit, escrow or similar accounts held
by customers of the Borrower or any of its Subsidiaries as security for the
obligations of the Borrower or any of its Subsidiaries under customer contracts
entered into in the ordinary course of business on a basis consistent with past
practices;

 

(xviii)      fiduciary or similar accounts held by the
Borrower or any of its Subsidiaries for their respective customers and for
which the Borrower or its respective Subsidiaries process claims on an ASO
basis, in each case so long as such accounts are funded with cash provided to
the Borrower or its respective Subsidiaries by their respective customers;

 

(xix)         Liens on cash deposits pledged as
collateral to secure Indebtedness permitted under Section 9.04(xii)
so long as the aggregate amount of cash pledged as collateral at any time outstanding
does not exceed $35,000,000; and

 

(xx)          Liens not otherwise permitted by
clauses (i) through (xix) of this Section 9.01 to the extent
attaching to properties and assets not constituting Collateral and with an
aggregate fair value not in excess of, and securing liabilities not in excess
of, $10,000,000  in the aggregate at any
time outstanding.

 

In connection with the granting of Liens of the type
described in clauses (vi), (vii) and (xiv) of this Section 9.01
by the Borrower of any of its Subsidiaries, the Administrative Agent and the
Collateral Agent shall be authorized to take any actions deemed appropriate by
it in connection therewith (including, without limitation, by executing
appropriate lien releases or lien subordination agreements in favor of the
holder or holders of such Liens, in either case solely with respect to the
property subject to such Liens).

 

9.02         Consolidation,
Merger, Purchase or Sale of Assets, etc. 
The Borrower will not, and will not permit any of its Subsidiaries to,
wind up, liquidate or dissolve its affairs or enter into any partnership, joint
venture, or transaction of merger or consolidation, or convey, sell, lease or
otherwise dispose of all or any part of its property or assets, or enter into
any sale-leaseback transactions, or purchase or otherwise acquire (in one or a
series of related transactions) any part of the property or assets (other than
purchases or other acquisitions of inventory, materials, equipment and
intangible assets in the ordinary course of business) of any Person (or agree
to do any of the foregoing at any future time), except that:

 

54

 

(i)            Capital Expenditures by the Borrower
and its Subsidiaries shall be permitted (excluding Capital Expenditures which may
arise as a result of the purchase of any capital stock or other equity
interests in any, or the assets constituting any, Acquired Entity or Business,
which Capital Expenditures may only be made pursuant to Permitted Acquisitions
or Investments effected in accordance with the relevant provisions of this
Agreement);

 

(ii)           each of the Borrower and its
Subsidiaries may make sales of inventory in the ordinary course of business;

 

(iii)          Investments may be made to the extent
permitted by Section 9.05;

 

(iv)          each of the Borrower and its
Subsidiaries may sell or otherwise dispose of obsolete, uneconomic or worn-out
equipment in the ordinary course of business;

 

(v)           the Borrower and its Subsidiaries may
sell assets (other than the capital stock or other equity interests of any
Subsidiary unless all of the capital stock and other equity interests of such
Subsidiary then owned by the Borrower and its Subsidiaries are sold in a sale
permitted by this clause (v)), so long as (v) no Default or Event of
Default then exists or would result therefrom, (w) each such sale is in an
arm’s-length transaction and the Borrower or the respective Subsidiary receives
at least fair market value (as determined in good faith by the Borrower or such
Subsidiary, as the case may be), (x) the consideration received by the
Borrower or such Subsidiary consists of at least 75% cash and is paid at the
time of the closing of such sale, (y) the Net Sale Proceeds therefrom are
applied and/or reinvested as (and to the extent) required by Section 3.03(d) and
(z) the aggregate amount of the proceeds received from all assets sold
pursuant to this clause (v) shall not exceed $12,500,000 in any fiscal
year of the Borrower;

 

(vi)          each of the Borrower and its
Subsidiaries may lease (as lessee) or license (as licensee) real or personal
property (so long as any such lease or license does not create a Capitalized
Lease Obligation except to the extent permitted by Section 9.04(v));

 

(vii)         each of the Borrower and its
Subsidiaries may sell or discount, in each case without recourse and in the
ordinary course of business, accounts receivable arising in the ordinary course
of business, but only in connection with the compromise or collection thereof
and not as part of any financing transaction or bulk sale;

 

(viii)        each of the Borrower and its
Subsidiaries may grant licenses, sublicenses, leases or subleases to other
Persons not materially interfering with the conduct of the business of the
Borrower or any of its Subsidiaries, in each case so long as no such grant otherwise
restricts any Credit Party’s right to grant a lien on such assets or property
in favor of the Collateral Agent;

 

(ix)           any Subsidiary of the Borrower may
merge with and into, or be dissolved or liquidated into, or transfer any of its
assets to, the Borrower or any Wholly-Owned Domestic Subsidiary of the Borrower
which is a Subsidiary Guarantor so long as (i) in the case of any such
merger, dissolution or liquidation involving the Borrower, the Borrower is the
surviving corporation of any such merger, dissolution or liquidation,

 

55

 

(ii) in all other cases, a Wholly-Owned
Domestic Subsidiary which is a Subsidiary Guarantor is the surviving
corporation of any such merger, dissolution or liquidation, (iii) the
security interests granted to the Collateral Agent for the benefit of the Secured
Creditors pursuant to the Security Documents in the assets of such Subsidiary
shall remain in full force and effect and perfected (to at least the same
extent as in effect immediately prior to such merger, dissolution or
liquidation), and (iv) in the case of any such transaction pursuant to
which any consideration is paid to a Person that is not a Wholly-Owned
Subsidiary of the Borrower, such consideration shall be permitted to be paid at
such time only to the extent that it could otherwise have been paid pursuant to
(and the Borrower shall be required to satisfy the provisions of) Section 8.15,
9.05(xiv) or 9.05(xv), as applicable;

 

(x)            any Foreign Subsidiary of the
Borrower may merge with and into, or be dissolved or liquidated into, or
transfer any of its assets to, any Wholly-Owned Foreign Subsidiary of the
Borrower so long as (i) in the case of any such merger, dissolution or
liquidation, a Wholly-Owned Foreign Subsidiary of the Borrower is the surviving
corporation of any such merger, dissolution or liquidation, and (ii) in
the case of any such transaction pursuant to which any consideration is paid to
a Person that is not a Wholly-Owned Subsidiary of the Borrower, such
consideration shall be permitted to be paid at such time only to the extent that
it could otherwise have been paid pursuant to (and the Borrower shall be
required to satisfy the provisions of) Section 8.15, 9.05(xiv)
or 9.05(xv), as applicable;

 

(xi)           Permitted Acquisitions may be made to
the extent permitted by Section 8.15;

 

(xii)          (A) any Subsidiary of the
Borrower that has no assets or liabilities (other than immaterial assets or
liabilities) may be dissolved or liquidated and (B) any Subsidiary of the
Borrower that is not a Subsidiary Guarantor may merge with and into, or be
dissolved or liquidated into, or transfer any or all of its assets to, a Wholly
Owned Subsidiary of the Borrower that is not a Subsidiary Guarantor so long as (i) a
Wholly-Owned Subsidiary of the Borrower is the surviving entity of any such
transaction and (ii) in the case of any such transaction pursuant to which
any consideration is paid to a Person that is neither the Borrower nor a
Wholly-Owned Subsidiary thereof, such consideration shall be permitted to be
paid at such time only to the extent that it could otherwise have been paid
pursuant to (and the Borrower shall be required to satisfy the provisions of) Section 8.15,
9.05(xiv) or 9.05(xv), as applicable; and

 

(xiii)         the
Maricopa Sale shall be permitted.

 

56

 

To the extent the
Required Lenders waive the provisions of this Section 9.02 with
respect to the sale of any Collateral, or any Collateral is sold as permitted
by this Section 9.02 (other than to the Borrower or a Subsidiary
thereof), such Collateral shall be sold free and clear of the Liens created by
the Security Documents, and the Administrative Agent and the Collateral Agent
shall be authorized to take any actions deemed appropriate in order to effect
the foregoing.

 

9.03         Dividends.  The Borrower will not, and will not permit
any of its Subsidiaries to, authorize, declare or pay any Dividends with
respect to the Borrower or any of its Subsidiaries, except that:

 

(i)            any Subsidiary of the Borrower may (x) pay
cash Dividends to the Borrower or to any Wholly-Owned Subsidiary of the
Borrower and (y) if such Subsidiary is not a Wholly-Owned Subsidiary of
the Borrower, pay cash Dividends to its shareholders, partners or members
generally so long as the Borrower or its respective Subsidiary which owns the equity
interest or interests in the Subsidiary paying such Dividends receives at least
its proportionate share thereof (based upon its relative holdings of equity
interests in the Subsidiary paying such Dividends and taking into account that
the relative preferences, if any, of the various classes of equity interests in
such Subsidiary);

 

(ii)           so long as there shall exist no
Default or Event of Default (both before and after giving effect to the payment
thereof), the Borrower may repurchase outstanding shares of Borrower Common
Stock (or options to purchase such Borrower Common Stock) following the death,
disability, retirement or termination of employment of employees, officers or
directors of the Borrower or any of its Subsidiaries, provided that the
aggregate amount of all Dividends paid by the Borrower pursuant to this clause (ii) shall
not exceed $5,000,000 in any fiscal year of the Borrower;

 

(iii)          the Borrower may pay or make cash
Dividends (including to repurchase shares of its capital stock) so long as (i) no
Default or Event of Default then exists or would result therefrom, (ii) calculations
are made by the Borrower with respect to the financial covenants contained in Sections
9.08 and 9.09 for the respective Calculation Period on Pro Forma Basis as if the respective Dividend
(as well as all other Dividends theretofore paid or made after the first day of
such Calculation Period) had occurred on the first day of such Calculation
Period, and such calculations shall show (x) in the case of Section 9.08,
that such financial covenant would have been complied with as of the last day
of such Calculation Period and (y) in the case of Section 9.09, that
the Total Leverage Ratio would have been no greater than 1.50:1.00 as of the
last day of such Calculation Period, (iii) immediately after giving effect
to such proposed Dividend, the sum of the Total Unutilized Revolving Loan
Amount then in effect plus the aggregate amount of all Unrestricted cash and
Cash Equivalents of the Borrower and the Subsidiary Guarantors at such time
shall equal or exceed $50,000,000 and (iv) the Borrower shall have
delivered to the Administrative Agent (with copies for each Lender) a
certificate executed by one of its Authorized Officers certifying compliance
with the requirements of preceding clauses (i) through (iii), inclusive,
and containing the calculations (in reasonable detail) required by preceding
clauses (ii) and (iii); and

 

57

 

(iv)          so long as no
Default or Event of Default then exists or would result therefrom, the Borrower
may pay or make additional cash Dividends (including to repurchase shares of
its capital stock) in an aggregate amount not to exceed $10,000,000 in any
fiscal year of the Borrower.

 

9.04         Indebtedness. 
The Borrower will not, and will not permit any of its Subsidiaries to,
contract, create, incur, assume or suffer to exist any Indebtedness, except:

 

(i)            Indebtedness
incurred pursuant to this Agreement and the other Credit Documents;

 

(ii)           Existing
Indebtedness outstanding on the Effective Date and listed on Schedule VI
(as reduced by any permanent repayments of principal thereof), without giving
effect to any subsequent extension, renewal or refinancing thereof except to
the extent set forth on Schedule VI, provided that the aggregate
principal amount of the Indebtedness to be extended, renewed or refinanced does
not increase from that amount outstanding at the time of any such extension,
renewal or refinancing;

 

(iii)          Indebtedness of
the Borrower under Interest Rate Protection Agreements entered into with
respect to other Indebtedness permitted under this Section 9.04 so
long as the entering into of such Interest Rate Protection Agreements are bona  fide hedging activities and are
not for speculative purposes;

 

(iv)          Indebtedness of
the Borrower or any of its Subsidiaries under Other Hedging Agreements
providing protection to the Borrower and its Subsidiaries against fluctuations
in currency values in connection with the Borrower’s or any of its Subsidiaries
foreign operations so long as the entering into of such Other Hedging
Agreements are bona  fide hedging activities and are
not for speculative purposes;

 

(v)           Indebtedness of
the Borrower and its Subsidiaries evidenced by Capitalized Lease Obligations
and purchase money Indebtedness described in Section 9.01(vii), provided
that in no event shall the sum of the aggregate principal amount of all
Capitalized Lease Obligations and purchase money Indebtedness permitted by this
clause (v) exceed $15,000,000 at any time outstanding;

 

(vi)          intercompany
Indebtedness among the Borrower and its Subsidiaries to the extent permitted by

Sections 9.05(viii) and (xiv);

 

(vii)         to the extent
that same constitutes Indebtedness, obligations in respect of earn-out
arrangements permitted pursuant to a Permitted Acquisition;

 

(viii)        Indebtedness
consisting of guaranties by the Borrower and the Subsidiary Guarantors of each
other’s Indebtedness permitted under this Agreement;

 

(ix)           Indebtedness of
a Subsidiary of the Borrower acquired pursuant to a Permitted Acquisition (or
Indebtedness assumed at the time of a Permitted Acquisition of an asset
securing such Indebtedness), provided that (x) such Indebtedness
was not incurred in connection with, or in anticipation or contemplation of,
such Permitted 

 

58

 

Acquisition, (y) such Indebtedness does
not constitute debt for borrowed money, it being understood and agreed that
Capitalized Lease Obligations and purchase money Indebtedness shall not
constitute debt for borrowed money for purposes of this clause (y) and (z) the
aggregate principal amount of all Indebtedness permitted by this clause (ix) shall
not exceed $25,000,000 at any one time outstanding;

 

(x)            Indebtedness arising from the
honoring by a bank or other financial institution of a check, draft or similar
instrument inadvertently (except in the case of daylight overdrafts) drawn
against insufficient funds in the ordinary course of business so long as such
Indebtedness is extinguished within four Business Days of the incurrence
thereof;

 

(xi)           Indebtedness of the Borrower or any
of its Subsidiaries which may be deemed to exist in connection with agreements
providing for indemnification, purchase price adjustments and similar
obligations in connection with the acquisition or disposition of assets in
accordance with the requirements of this Agreement so long as any such
obligations are those of the Person making the respective acquisition or sale,
and are not guaranteed by any other Person except as permitted by Section 9.04(viii);

 

(xii)          so long as no Default or Event of
Default then exists or would result therefrom, Indebtedness of the Borrower or
any of its Subsidiaries in respect of letters of credit issued for the account
of the Borrower or any of its Subsidiaries in the ordinary course of business
and supporting L/C Supportable Obligations so long as the aggregate stated
amount of all such Indebtedness (including all unreimbursed drawings
thereunder) does not exceed $35,000,000 at any time outstanding;

 

(xiii)         Permitted Subordinated Debt of the
Borrower, and unsecured subordinated guaranties thereof by the Subsidiary
Guarantors, so long as (i) all such Indebtedness is incurred in accordance
with the requirements of the definition of Permitted Subordinated Debt, (ii) no
Default or Event of Default exists at the time of incurrence thereof or would
result therefrom, (iii) the Net Debt Proceeds therefrom are used to effect
a Permitted Acquisition in accordance with the requirements of Section 8.15,
(iv) calculations are made by the Borrower with respect to the financial
covenants contained in Sections 9.08 and 9.09 for the respective
Calculation Period on a Pro  Forma Basis as if
such Permitted Subordinated Debt (as well as all other Permitted Subordinated
Debt theretofore incurred after the first day of such Calculation Period) had
been incurred on the first of such Calculation Period, and such calculations
shall show that such financial covenants would have been complied with as of
the last day of such Calculation Period and (v) the Borrower shall have
delivered to the Administrative Agent (with copies for each Lender) a
certificate executed by one of its Authorized Officers certifying compliance
with the requirements of preceding clauses (i) through (iv), inclusive,
and containing the calculations (in reasonable detail) required by preceding
clause (iv); and

 

(xiv)        so long as no Default or Event of
Default then exists or would result therefrom, additional Indebtedness of the
Borrower and its Subsidiaries not to exceed $25,000,000 in aggregate principal
amount at any time outstanding.

 

59

 

9.05         Advances,
Investments and Loans.  The Borrower
will not, and will not permit any of its Subsidiaries to, directly or indirectly,
lend money or credit or make advances to any Person, or purchase or acquire any
stock, obligations or securities of, or any other interest in, or make any
capital contribution to, any other Person, or purchase or own a futures
contract or otherwise become liable for the purchase or sale of currency or
other commodities at a future date in the nature of a futures contract, or hold
any cash or Cash Equivalents (each of the foregoing an “Investment” and,
collectively, “Investments”), except that the following shall be
permitted:

 

(i)            the Borrower and its Subsidiaries
may acquire and hold accounts receivables owing to any of them, if created or
acquired in the ordinary course of business and payable or dischargeable in
accordance with customary trade terms of the Borrower or such Subsidiary;

 

(ii)           the Borrower and its Subsidiaries may
acquire and hold cash and Cash Equivalents;

 

(iii)          the Borrower and its Subsidiaries may
hold the Investments held by them on the Effective Date and described on Schedule
IX, provided that any additional Investments made with respect
thereto shall be permitted only if permitted under the other provisions of this
Section 9.05;

 

(iv)          the Borrower and its Subsidiaries may
acquire and own investments (including debt obligations) received in connection
with the bankruptcy or reorganization of suppliers and customers and in good
faith settlement of delinquent obligations of, and other disputes with,
customers and suppliers arising in the ordinary course of business;

 

(v)           the Borrower and its Subsidiaries may
make loans and advances to their officers and employees in the ordinary course
of business (including for the exercise of stock options and similar rights) of
the Borrower and its Subsidiaries in an aggregate amount not to exceed
$5,000,000 at any time outstanding (determined without regard to any
write-downs or write-offs of such loans and advances);

 

(vi)          the Borrower may enter into Interest
Rate Protection Agreements to the extent permitted by

Section 9.04(iii);

 

(vii)         the Borrower and its Subsidiaries may
enter into Other Hedging Agreements to the extent permitted by Section 9.04(iv);

 

(viii)        the Borrower and its Wholly-Owned
Subsidiaries may make intercompany loans and advances between and among one
another (collectively, “Intercompany Loans”), provided that (i) the
aggregate principal amount of all Intercompany Loans made by the Credit Parties
pursuant to this Section 9.05(viii) to Wholly-Owned
Subsidiaries of the Borrower that are not Subsidiary Guarantors shall not
exceed $30,000,000 at any time outstanding (determined without regard to any
write-downs or write-offs thereof), (ii) no Intercompany Loans may be made
by a Credit Party to a Wholly-Owned Subsidiary of the Borrower that is not a
Credit Party at a time that any Default or Event of Default exists and is
continuing, (iii) any such Intercompany Loan

 

60

 

made by a Credit Party shall be evidenced by
an Intercompany Note which shall be pledged to the Collateral Agent pursuant
to, and to the extent required by, the Pledge Agreement, and (iv) each
Intercompany Loan made to any Credit Party shall include (or, if not evidenced
by an Intercompany Note, the books and records of the respective parties shall
note that such Intercompany Loan shall be subject to) the subordination
provisions attached as Annex A to the form of Intercompany Note;

 

(ix)           the Borrower and the Subsidiary
Guarantors may make capital contributions to their respective Subsidiaries that
are Subsidiary Guarantors;

 

(x)            so long as no Specified Default or
Event of Default then exists or would result therefrom, the Borrower and its
Wholly-Owned Subsidiaries may make cash capital contributions and Intercompany
Loans to their respective Wholly-Owned Subsidiaries as, and only to the extent,
necessary to enable such Wholly-Owned Subsidiaries to satisfy a net worth, net
equity or capital requirement or similar calculation or requirement imposed on
such Wholly-Owned Subsidiaries by any governmental authority having jurisdiction
of such Wholly-Owned Subsidiaries due to the regulated nature of such
Wholly-Owned Subsidiaries’ operations;

 

(xi)           Permitted Acquisitions shall be
permitted in accordance with Section 8.15;

 

(xii)          the Borrower may acquire and hold
obligations of one or more officers, directors or other employees of the
Borrower or any of its Subsidiaries in connection with such officers’,
directors’ or employees’ acquisition of shares of capital stock of the Borrower
so long as no cash is paid by the Borrower or any of its Subsidiaries to such
officers, directors or employees in connection with the acquisition of any such
obligations;

 

(xiii)         the Borrower and its Subsidiaries may
acquire and hold promissory notes and other non-cash consideration issued by
the purchaser of assets in connection with a sale of such assets to the extent
permitted by

Section 9.02(v);

 

(xiv)        the Borrower and its Subsidiaries may
make Investments so long as (i) no Default or Event of Default then exists
or would result therefrom, (ii) calculations are made by the Borrower with
respect to the financial covenants contained in Sections 9.08 and 9.09
for the respective Calculation Period on Pro  Forma Basis as if the respective
Investment (as well as other Investments theretofore consummated after the
first day of such Calculation Period) had occurred on the first day of such
Calculation Period, and such calculations shall show that financial covenants
would have been complied with as of the last day of such Calculation Period, (iii) immediately
after giving effect to such proposed Investment, the sum of the Total
Unutilized Revolving Loan Amount then in effect plus the aggregate amount of
all Unrestricted cash and Cash Equivalents of the Borrower and the Subsidiary
Guarantors at such time shall equal or exceed $50,000,000 and (iv) the
Borrower shall have delivered to the Administrative Agent (with copies for each
Lender) a certificate executed by one of its Authorized Officers certifying
compliance with the requirements of preceding clauses (i) through (iiii),
inclusive, and 

 

61

 

containing the calculations (in reasonable
detail) required by preceding clauses (ii) and (iii); and

 

(xv)         so long as no Default or Event of
Default then exists or would result therefrom, the Borrower and its
Subsidiaries may make Investments not otherwise permitted by clauses (i) through
(xiv) of this Section 9.05 in an aggregate amount not to exceed
$15,000,000 at any time outstanding (determined without regard to any write-downs
or write-offs of such Investments).

 

9.06         Transactions
with Affiliates.  The Borrower will
not, and will not permit any of its Subsidiaries to, enter into any transaction
or series of related transactions with any Affiliate of the Borrower or any of
its Subsidiaries, other than in the ordinary course of business and on terms
and conditions substantially as favorable to the Borrower or such Subsidiary as
would reasonably be obtained by the Borrower or such Subsidiary at that time in
a comparable arm’s-length transaction with a Person other than an Affiliate,
except that:

 

(i)            Dividends may
be paid to the extent provided in Section 9.03;

 

(ii)           loans may be
made and other transactions may be entered into by the Borrower and its
Subsidiaries to the extent permitted by Sections 9.02, 9.04 and 9.05;

 

(iii)          customary fees,
indemnities and reimbursements may be paid to officers and directors of the
Borrower and its Subsidiaries;

 

(iv)          the Borrower
and its Subsidiaries may enter into, and may make payments under, employment
agreements, employee benefits plans, stock option plans, indemnification
provisions, severance arrangements, and other similar compensatory arrangements
with officers, employees and directors of the Borrower and its Subsidiaries in
the ordinary course of business;

 

(v)           periodic
allocations of overhead expenses among the Borrower and its Subsidiaries may be
made; and

 

(vi)          the Borrower
may pay to any Subsidiary Guarantor and any Subsidiary of the Borrower may pay
to the Borrower or any Subsidiary Guarantor management, consulting or similar
fees on a basis consistent with past practices.

 

Notwithstanding anything to the contrary contained in
this Agreement, the Borrower will not, and will not permit any of its
Subsidiaries to, pay any management, consulting or similar fees to any of their
respective Affiliates other than as permitted by clause (vi) above.

 

9.07         Changes to Legal Names, Organizational
Identification Numbers, Jurisdiction or Type or Organization. 
The Borrower will not, and will not permit any of the other Credit
Parties to, change its legal name until (i) it shall have given to the
Collateral Agent not less than 15 days prior written notice of its intention so
to do (or such shorter period of time as may be acceptable to the Collateral Agent),
clearly describing such new name and providing other information in connection
therewith as the Collateral Agent may reasonably request, and

 

62

 

(ii) with respect to
such new name, it shall have taken all action reasonably requested by the
Collateral Agent to maintain the security interests of the Collateral Agent in
the Collateral intended to be granted pursuant to the applicable Security
Documents at all times fully perfected and in full force and effect.  In addition, to the extent that any Credit
Party does not have an organizational identification number on the Effective
Date and later obtains one, or if there is any change in the organizational
identification number of any Credit Party, the Borrower or such other Credit
Party shall promptly notify the Collateral Agent of such new or changed
organizational identification number and shall take all actions reasonably
satisfactory to the Collateral Agent to the extent necessary to maintain the
security interests of the Collateral Agent in the Collateral intended to be
granted pursuant to the applicable Security Documents fully perfected and in
full force and effect.  Furthermore, the
Borrower will not, and will not permit any of the other Credit Parties to,
change its jurisdiction of organization or its type of organization until (i) it
shall have given to the Collateral Agent not less than 15 days prior written
notice of its intention so to do (or such shorter period of time as may be
acceptable to the Collateral Agent), clearly describing such new jurisdiction
of organization and/or type of organization and providing such other
information in connection therewith as the Collateral Agent may reasonably
request (although no change pursuant to this Section 9.07 shall be
permitted to the extent that it involves a “Registered Organization” (as
defined in the Security Agreement) ceasing to constitute same) and (ii) with
respect to such new jurisdiction and/or type of organization, it shall have
taken all actions reasonably requested by the Collateral Agent to maintain the
security interests of the Collateral Agent in the Collateral intended to be
granted pursuant to the Security Documents at all times fully perfected and in
full force and effect.

 

9.08         Consolidated
Interest Coverage Ratio.  The
Borrower will not permit the Consolidated Interest Coverage Ratio for any Test
Period ending on the last day of any fiscal quarter of the Borrower to be less
than 3.00:1.00.

 

9.09         Total
Leverage Ratio.  The Borrower will
not permit the Total Leverage Ratio at any time to be greater than 3.00:1.00.

 

9.10         Limitations
on Payments of Permitted Subordinated Debt; Modifications of Certificate of
Incorporation, By-Laws and Certain Other Agreements, etc.  The Borrower will not, and will not permit
any of its Subsidiaries to:

 

(i)            make (or give any notice in respect
of) any voluntary or optional payment or prepayment on or redemption or
acquisition for value of, or any prepayment or redemption as a result of any
asset sale, change of control or similar event of (including, in each case
without limitation, by way of depositing with the trustee with respect thereto,
or with any other Person, money or securities before due for the purpose of
paying when due), any Permitted Subordinated Debt, provided, however,
(A) so long as no Default or Event of Default then exists or would result
therefrom, the Borrower may redeem or repurchase outstanding Permitted
Subordinated Debt so long as the aggregate amount expended in respect of all
such redemptions and repurchases does not exceed  $10,000,000 in any fiscal year of the
Borrower and (B) the Borrower may effect additional redemptions or
repurchases of outstanding Permitted Subordinated Debt so long as (i) no
Default or Event of Default then exists or would result therefrom, (ii) calculations
are made by the Borrower with respect to the financial covenants contained 

 

63

 

in Sections 9.08 and 9.09 for
the respective Calculation Period on Pro  Forma Basis as if the respective
redemption or repurchase (as well as all other redemptions and repurchases
theretofore consummated after the first day of such Calculation Period) had
occurred on the first day of such Calculation Period, and such calculations shall
show (x) in the case of Section 9.08, that such financial covenant
would have been complied with as of the last day of such Calculation Period and
(y) in the case of Section 9.09, that the Total Leverage Ratio would
have been no greater than 1.50:1.00 as of the last day of such Calculation
Period, (iii) immediately after giving effect to such proposed redemption
or repurchase, the sum of the Total Unutilized Revolving Loan Amount then in
effect plus the aggregate amount of all Unrestricted cash and Cash Equivalents
of the Borrower and the Subsidiary Guarantors at such time shall equal or
exceed $50,000,000 and (iv) the Borrower shall have delivered to the
Administrative Agent (with copies for each Lender) a certificate executed by
one of its Authorized Officers certifying compliance with the requirements of
preceding clauses (i) through (iii), inclusive and containing the
calculations (in reasonable detail) required by preceding clauses (ii) and
(iii);

 

(ii)           on and after the execution and
delivery of any Permitted Subordinated Debt Document, amend or modify (or
permit the amendment or modification of) any Permitted Subordinated Debt
Document, other than any such amendment or modification that (i) makes the
provisions thereof less restrictive on the Borrower and its Subsidiaries
(including with respect to any representation, warranty, covenant, default or
event of default), (ii) reduces interest rates, commissions or fees paid
(or to be paid) by the Borrower or any of its Subsidiaries in connection
therewith, (iii) extends the stated maturity of any Indebtedness
thereunder, (iv) reduces or eliminates any prepayment premiums or (v) is
otherwise not adverse to the Lenders in any material respect (in the reasonable
opinion of the Administrative Agent), provided that no amendment or
modification may be made to the subordination provisions contained in any
Permitted Subordinated Debt Document without the prior written consent of the
Administrative Agent;

 

(iii)          amend, modify or change its
certificate or articles of incorporation (including, without limitation, by the
filing or modification of any certificate or articles of designation),
certificate of formation, limited liability company agreement or by-laws (or
the equivalent organizational documents), as applicable, or any agreement
entered into by it with respect to its capital stock or other equity interests
(including any Shareholders’ Agreement), or enter into any new agreement with
respect to its capital stock or other equity interests, unless such amendment,
modification, change or other action contemplated by this clause (iii) could
not reasonably be expected to be adverse to the interests of the Lenders in any
material respect; and

 

(iv)          amend or modify, or permit the
amendment or modification of, any Tax Sharing Agreement or enter into any new
tax sharing agreement, tax allocation agreement or similar agreements in each
case without the prior written consent of the Administrative Agent except for
any such agreements exclusively between or among the Borrower and the
Subsidiary Guarantors.

 

64

 

9.11         Limitation
on Certain Restrictions on Subsidiaries. 
The Borrower will not, and will not permit any of its Subsidiaries to,
directly or indirectly, create or otherwise cause or suffer to exist or become
effective any encumbrance or restriction on the ability of any such Subsidiary
to (a) pay dividends or make any other distributions on its capital stock
or any other interest or participation in its profits owned by the Borrower or
any of its Subsidiaries, or pay any Indebtedness owed to the Borrower or any of
its Subsidiaries, (b) make loans or advances to the Borrower or any of its
Subsidiaries or (c) transfer any of its properties or assets to the
Borrower or any of its Subsidiaries, except for such encumbrances or
restrictions existing under or by reason of (i) applicable law or any
applicable regulation, rule, order, approval, license or other restrictions
issued by any governmental authority, (ii) this Agreement and the other
Credit Documents, (iii) on or after the delivery thereof, the Permitted
Subordinated Debt Documents, (iv) customary provisions restricting
subletting or assignment of any lease governing any leasehold interest of the
Borrower or any of its Subsidiaries, (v) customary provisions restricting
assignment of any licensing agreement (in which the Borrower or any of its
Subsidiaries is the licensee) or other contract entered into by the Borrower or
any of its Subsidiaries in the ordinary course of business, (vi) restrictions
on the transfer of any asset pending the close of the sale of such asset, (vii) restrictions
on the transfer of any asset subject to a Lien permitted by Section 9.01(iii),
(vi), (vii), (xiv), (xvii), (xviii), (xix)
or (xx) and (viii) customary restrictions in the respective
Subsidiary’s industry imposed by customers under contractual arrangements
entered into in the ordinary course of business with respect to cash or other
deposits or minimum net worth or similar requirements.

 

9.12         Business,
etc.  The Borrower will not, and will
not permit any of its Subsidiaries to, engage in any business other than the
businesses engaged in by the Borrower and its Subsidiaries as of the Effective
Date and reasonable extensions thereof and businesses ancillary or
complimentary thereto.

 

9.13         Limitation
on Creation of Subsidiaries.  The
Borrower will not, and will not permit any of its Subsidiaries to, establish,
create or acquire after the Effective Date any Subsidiary, provided that
the Borrower and its Wholly Owned Subsidiaries may (x) establish, create
and, to the extent permitted by this Agreement, acquire Wholly-Owned
Subsidiaries and (y) establish, create and acquire non-Wholly-Owned
Subsidiaries to the extent permitted by Sections 9.05(xiv) or (xv) or by
the definition of Permitted Acquisition, in each case so long as (i) all
of the capital stock and other equity interests of such new Subsidiary are (to
the extent owned by a Credit Party) pledged to the Collateral Agent pursuant
to, and to the extent required by, the Pledge Agreement, (ii) each such
new Wholly-Owned Domestic Subsidiary (and, to the extent required by Section 8.13,
each new Wholly-Owned Foreign Subsidiary) executes and delivers to the
Collateral Agent a counterpart of the Subsidiaries Guaranty, the Pledge
Agreement and the Security Agreement, (iii) each such new Wholly-Owned
Domestic Subsidiary (and, to the extent required by Section 8.13,
each new Wholly-Owned Foreign Subsidiary) enters into such Mortgages and other
Additional Security Documents as the Administrative Agent or the Required
Lenders may require pursuant to Section 8.12 and (iv) each
such new Wholly-Owned Domestic Subsidiary (and to the extent required by Section 8.13,
each new Wholly-Owned Foreign Subsidiary) executes and delivers all other
relevant documentation (including opinions of counsel, resolutions, officers’
certificates and UCC financing statements) of the type described in Section 5
as such new Subsidiary would have had to deliver if it were a Credit Party on the
Effective Date; provided, however, that neither the 

 

65

 

Borrower nor any
Subsidiary thereof shall be required to take any action of the type described
in preceding clauses (i) through (iv) to the extent (but only to the
extent) that the taking of any such action either (A) would violate any
law, regulation, rule, order, approval, license or other restriction applicable
to the Borrower or such Subsidiary and imposed by any governmental authority
due to the regulated nature of the Borrower’s or such Subsidiary’s operations
or (B) would reasonably be expected to cause such Wholly-Owned Subsidiary
to fail to satisfy a net worth, net equity or capital requirement or similar
calculation or requirement imposed on such Wholly-Owned Subsidiary by any
governmental authority having jurisdiction of such Wholly-Owned Subsidiary due
to the regulated nature of such Wholly-Owned Subsidiary’s operations.

 

9.14         Limitation
on Issuance of Capital Stock.  (a) The
Borrower will not, and will not permit any of its Subsidiaries to, issue (i) any
preferred stock or other preferred equity interests other than (x) Qualified
Preferred Stock of the Borrower or (y) any preferred stock issued by a
Subsidiary of the Borrower to the extent that such preferred stock is held by
the Borrower or a Wholly-Owned Subsidiary thereof or (ii) any redeemable
common stock or other redeemable common equity interests other than common
stock or other redeemable common equity interests that is redeemable at the
sole option of the Borrower or such Subsidiary, as the case may be.

 

(b)           The Borrower will not permit any of its Subsidiaries to
issue any capital stock or other equity interests (including by way of sales of
treasury stock) or any options or warrants to purchase, or securities
convertible into, capital stock or other equity interests, except (i) for
transfers and replacements of then outstanding shares of capital stock or other
equity interests, (ii) for stock splits, stock dividends and issuances which
do not decrease the percentage ownership of the Borrower or any of its
Subsidiaries in any class of the capital stock or other equity interests of
such Subsidiary, (iii) in the case of Foreign Subsidiaries, to qualify
directors and other nominal amounts required to be held by local nationals in
each case to the extent required by applicable law, or (iv) for issuances
by newly created or acquired Subsidiaries in accordance with the terms of this
Agreement.

 

SECTION 10.         Events
of Default.  Upon the occurrence of
any of the following specified events (each an “Event of Default”):

 

10.01       Payments.  The Borrower shall (i) default in the
payment when due of any principal of any Loan or any Note or any Unpaid Drawing
or (ii) default, and such default shall continue unremedied for three or
more Business Days, in the payment when due of any interest on any Loan, Note
or Unpaid Drawing or any Fees or any other amounts owing hereunder or under any
other Credit Document; or

 

10.02       Representations,
etc.  Any representation, warranty or
statement made or deemed made by any Credit Party herein or in any other Credit
Document or in any certificate delivered to the Administrative Agent or any
Lender pursuant hereto or thereto shall prove to be untrue in any material
respect on the date as of which made or deemed made; or

 

10.03       Covenants.  The Borrower or any of its Subsidiaries shall
(i) default in the due performance or observance by it of any term,
covenant or agreement contained in Section 8.01(f)(i),

 

66

 

8.08, 8.11, 8.15 or Section 9
or (ii) default in the due performance or observance by it of any other
term, covenant or agreement contained in this Agreement or in any other Credit
Document (other than those set forth in Sections 10.01 and 10.02)
and such default pursuant to this sub clause (ii) shall continue
unremedied for a period of 30 days after written notice thereof to the
defaulting party by the Administrative Agent or the Required Lenders; or

 

10.04       Default
Under Other Agreements.  (i) The
Borrower or any of its Subsidiaries shall (x) default in any payment of
any Indebtedness (other than the Obligations) beyond the period of grace, if
any, provided in an instrument or agreement under which such Indebtedness was
created or (y) default in the observance or performance of any agreement
or condition relating to any Indebtedness (other than the Obligations) or
contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event shall occur or condition exist, the effect of which
default or other event or condition is to cause, or to permit the holder or
holders of such Indebtedness (or a trustee or agent on behalf of such holder or
holders) to cause (determined without regard to whether any notice is
required), any such Indebtedness to become due prior to its stated maturity, or
(ii) any Indebtedness (other than the Obligations) of the Borrower or any
of its Subsidiaries shall be declared to be (or shall become) due and payable,
or required to be prepaid other than by a regularly scheduled required
prepayment, prior to the stated maturity thereof, provided that it shall
not be a Default or an Event of Default under this Section 10.04
unless the aggregate principal amount of all Indebtedness as described in
preceding clauses (i) and (ii) is at least $10,000,000; or

 

10.05       Bankruptcy,
etc.  The Borrower or any of its
Subsidiaries shall commence a voluntary case concerning itself under Title 11
of the United States Code entitled “Bankruptcy,” as now or hereafter in
effect, or any successor thereto (the “Bankruptcy Code”); or an
involuntary case is commenced against the Borrower or any of its Subsidiaries,
and the petition is not controverted within 10 days, or is not dismissed within
60 days, after commencement of the case; or a custodian (as defined in the
Bankruptcy Code) is appointed for, or takes charge of, all or substantially all
of the property of the Borrower or any of its Subsidiaries which custodian is
not dismissed within 60 days after the date of such appointment or the date
such custodian takes charge, or the Borrower or any of its Subsidiaries
commences any other proceeding under any reorganization, arrangement,
adjustment of debt, relief of debtors, dissolution, insolvency or liquidation
or similar law of any jurisdiction whether now or hereafter in effect relating
to the Borrower or any of its Subsidiaries, or there is commenced against the
Borrower or any of its Subsidiaries any such proceeding which remains
undismissed for a period of 60 days, or the Borrower or any of its Subsidiaries
is adjudicated insolvent or bankrupt; or any order of relief or other order
approving any such case or proceeding is entered; or the Borrower or any of its
Subsidiaries suffers any appointment of any custodian or the like for it or any
substantial part of its property to continue undischarged or unstayed for a
period of 60 days; or the Borrower or any of its Subsidiaries makes a general
assignment for the benefit of creditors; or any corporate, limited liability
company or similar action is taken by the Borrower or any of its Subsidiaries
for the purpose of effecting any of the foregoing; or

 

10.06       ERISA.  (a) Any ERISA Plan shall fail to satisfy
the minimum funding standard required for any plan year or part thereof under Section 412
of the Code or Section 302 of ERISA or a waiver of such standard or
extension of any amortization period is sought or granted under Section 412
of the Code or Section 303 or 304 of ERISA, a Reportable Event shall 

 

67

 

have occurred, a
contributing sponsor (as defined in Section 4001(a)(13) of ERISA) of an
ERISA Plan subject to Title IV of ERISA shall be subject to the advance
reporting requirement of PBGC Regulation Section 4043.61 (without regard
to subparagraph (b)(1) thereof) and an event described in subsection .62,
..63, .64, .65, .66, .67 or .68 of PBGC Regulation Section 4043 shall be
reasonably expected to occur with respect to such ERISA Plan within the
following 30 days, any ERISA Plan which is subject to Title IV of ERISA shall
have had or is likely to have a trustee appointed to administer such ERISA
Plan, any ERISA Plan which is subject to Title IV of ERISA is, shall have been
or is likely to be terminated or to be the subject of termination proceedings
under ERISA, any ERISA Plan shall have an Unfunded Current Liability, a
contribution required to be made with respect to an ERISA Plan or a Foreign
Pension Plan has not been timely made, the Borrower or any of its Subsidiaries
or any ERISA Affiliate has incurred or is likely to incur any liability to or
on account of an ERISA Plan under Section 409, 502(i), 502(l), 515, 4062,
4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section 436(f), 4971 or
4975 of the Code or on account of a group health plan (as defined in Section 607(1) of
ERISA or Section 4980B(g)(2) of the Code) under Section 4980B of
the Code, or the Borrower or any of its Subsidiaries has incurred or is likely
to incur liabilities pursuant to one or more employee welfare benefit plans (as
defined in Section 3(1) of ERISA) that provide benefits to retired
employees or other former employees (other than as required by Section 601
of ERISA) or ERISA Plans or Foreign Pension Plans, a “default” within the
meaning of Section 4219(c)(5) of ERISA shall occur with respect to
any ERISA Plan, any applicable law, rule or regulation is adopted, changed
or interpreted, or the interpretation or administration thereof is changed, in
each case after the date hereof, by any governmental authority or agency or by
any court (a “Change of Law”), or, as a result of a Change in Law, an
event occurs following a Change in Law, with respect to or otherwise affecting
any ERISA Plan; (b) there shall result from any such event or events the
imposition of a lien, the granting of a security interest, or a liability or a
material risk of incurring a liability; and (c) such lien, security
interest or liability, either individually and/or in the aggregate, has had, or
could reasonably be expected to have, in the opinion of the Required Lenders, a
Material Adverse Effect; or

 

10.07       Security
Documents.  After the execution and
delivery thereof, any of the Security Documents shall cease to be in full force
and effect, or shall cease to give the Collateral Agent for the benefit of the
Secured Creditors the Liens, rights, powers and privileges purported to be
created thereby (including, without limitation, a perfected security interest
in, and Lien on, all of the Collateral, in favor of the Collateral Agent,
superior to and prior to the rights of all third Persons (except as permitted
by Section 9.01), and subject to no other Liens (except as
permitted by Section 9.01), or any Credit Party shall default in
the due performance or observance of any term, covenant or agreement on its
part to be performed or observed pursuant to any such Security Document and
such default shall continue beyond the period of grace, if any, specifically
applicable thereto pursuant to the terms of such Security Document; or

 

10.08       Subsidiaries
Guaranty.  The Subsidiaries Guaranty
or any provision thereof shall cease to be in full force or effect as to any
Subsidiary Guarantor, or any Subsidiary Guarantor or any Person acting for or
on behalf of such Subsidiary Guarantor shall deny or disaffirm such Subsidiary
Guarantor’s obligations under the Subsidiaries Guaranty or any Subsidiary
Guarantor shall default in the due performance or observance of any term,
covenant or agreement on its part to be performed or observed pursuant to the
Subsidiaries Guaranty; or

 

68

 

10.09       Judgments.  One or more judgments or decrees shall be
entered against the Borrower or any of its Subsidiaries involving in the
aggregate for the Borrower and its Subsidiaries a liability (not paid or fully
covered by a reputable and solvent insurance company) and such judgments and
decrees either shall be final and non-appealable or shall not be vacated,
discharged or stayed or bonded pending appeal for any period of 30 consecutive
days, and the aggregate amount of all such judgments equals or exceeds
$10,000,000; or

 

10.10       Change
of Control.  A Change of Control
shall occur; then, and in any such event, and at any time thereafter, if any
Event of Default shall then be continuing, the Administrative Agent, upon the
written request of the Required Lenders, shall by written notice to the
Borrower, take any or all of the following actions, without prejudice to the
rights of the Administrative Agent, any Lender or the holder of any Note to
enforce its claims against any Credit Party (provided that, if an Event
of Default specified in Section 10.05 shall occur with respect to
the Borrower, the result which would occur upon the giving of written notice by
the Administrative Agent as specified in clauses (i) and (ii) below
shall occur automatically without the giving of any such notice):  (i) declare the Total Revolving Loan
Commitment terminated, whereupon the Revolving Loan Commitment of each Lender
shall forthwith terminate immediately and any Commitment Commission shall
forthwith become due and payable without any other notice of any kind; (ii) declare
the principal of and any accrued interest in respect of all Loans and the Notes
and all other Obligations owing hereunder and thereunder to be, whereupon the
same shall become, forthwith due and payable without presentment, demand,
protest or other notice of any kind, all of which are hereby waived by each
Credit Party; (iii) terminate any Letter of Credit which may be terminated
in accordance with its terms; (iv) direct the Borrower to pay (and the
Borrower agrees that upon receipt of such notice, or upon the occurrence of an
Event of Default specified in Section 10.05 with respect to the
Borrower, it will pay) to the Administrative Agent at the Payment Office such
additional amount of cash or Cash Equivalents, to be held as security by the
Administrative Agent, as is equal to the aggregate Stated Amount of all Letters
of Credit issued for the account of the Borrower and then outstanding; (v) enforce,
as Collateral Agent, all of the Liens and security interests created pursuant
to the Security Documents; and (vi) apply any cash collateral held by the
Administrative Agent pursuant to Section 4.02 to the repayment of
the Obligations.

 

SECTION 11.         Defined
Terms.  As used in this Agreement,
the following terms shall have the following meanings (such meanings to be
equally applicable to both the singular and plural forms of the terms defined):

 

“Acquired Entity or Business” shall mean either
(x) the assets constituting a business, division or product line of any
Person not already a Subsidiary of the Borrower or (y) 100% of the capital
stock of any such Person, which Person shall, as a result of such stock
acquisition, become a Wholly-Owned Subsidiary of the Borrower (or shall be
merged with and into the Borrower or a Wholly-Owned Subsidiary of the Borrower,
with the Borrower or such Wholly-Owned Subsidiary being the surviving Person).

 

“Additional Security Documents” shall have the
meaning provided in Section 8.12.

 

69

 

“Administrative Agent”
shall mean DBAG, in its capacity as Administrative Agent for the Lenders
hereunder, and shall include any successor to the Administrative Agent
appointed pursuant to Section 12.09.

 

“Affiliate” shall
mean, with respect to any Person, any other Person directly or indirectly
controlling (including, but not limited to, all directors and officers of such
Person), controlled by, or under direct or indirect common control with, such
Person. A Person shall be deemed to control another Person if such Person
possesses, directly or indirectly, the power (i) to vote 10% or more of
the securities having ordinary voting power for the election of directors (or
equivalent governing body) of such Person or (ii) to direct or cause the
direction of the management and policies of such other Person, whether through
the ownership of voting securities, by contract or otherwise; provided, however,
that neither the Administrative Agent nor any Affiliate thereof shall be
considered an Affiliate of the Borrower or any Subsidiary thereof.

 

“Agent” shall mean
and include each of the Administrative Agent and the Syndication Agent.

 

“Agreement” shall
mean this Credit Agreement, as modified, supplemented, amended, restated
(including any amendment and restatement hereof), extended or renewed from time
to time.

 

“Applicable Commitment
Commission Percentage” shall mean, on any day, 0.375% per annum.

 

“Applicable Margin”
shall mean, on any day with respect to Revolving Loans maintained as Eurodollar
Loans, 1.00% per annum.

 

“Asset Sale” shall
mean any sale, transfer or other disposition by the Borrower or any of its
Subsidiaries to any Person (including by way of redemption by such Person)
other than to the Borrower or a Wholly-Owned Subsidiary of the Borrower of any
asset (including, without limitation, any capital stock or other securities of,
or equity interests in, another Person) other than sales of assets pursuant to Sections
9.02(ii), (iv), (vii), (viii) and (xiii).

 

“Assignment and
Assumption Agreement” shall mean an Assignment and Assumption Agreement
substantially in the form of Exhibit L (appropriately completed).

 

“Attributable Debt”
shall mean, as of any date of determination thereof, without duplication, (i) in
connection with a Sale and Leaseback Transaction, the net present value
(discounted according to generally accepted accounting principles at the cost
of debt implied in the lease) of the obligations of the lessee for rental
payments during the then remaining term of any applicable lease, and (ii) the
principal balance outstanding under any synthetic lease, tax retention
operating lease, off-balance sheet loan or similar off-balance sheet financing
(including an off-balance sheet receivables financing) product to which such
Person is a party.

 

“Authorized Officer”
shall mean, with respect to (i) delivering Notices of Borrowing, Notices
of Conversion/Continuation, Letter of Credit Requests and similar notices, any
person or persons that has or have been authorized by the board of directors of
the Borrower

 

70

 

to deliver such
notices pursuant to this Agreement and that has or have appropriate signature
cards on file with the Administrative Agent, the Swingline Lender or the
respective Issuing Lender, (ii) delivering financial information and
officer’s certificates pursuant to this Agreement, the chief financial officer,
the treasurer or the principal accounting officer of the Borrower, and (iii) any
other matter in connection with this Agreement or any other Credit Document,
any officer (or a person or persons so designated by any two officers) of the
Borrower.

 

“Bankruptcy Code”
shall have the meaning provided in Section 10.05.

 

“Base Rate” shall
mean, at any time, the higher of (i) the Prime Lending Rate at such time
and (ii) 1/2 of 1% in excess of the overnight Federal Funds Rate at such
time.

 

“Base Rate Loan”
shall mean (i) each Swingline Loan and (ii) each other Loan
designated or deemed designated as such by the Borrower at the time of the
incurrence thereof or conversion thereto.

 

“Borrower” shall
have the meaning provided in the first paragraph of this Agreement.

 

“Borrower Common Stock”
shall have the meaning provided in Section 7.13.

 

“Borrowing” shall
mean (i) the borrowing of one Type of Revolving Loan from all the Lenders
on a given date (or resulting from a conversion or conversions on such date)
having in the case of Eurodollar Loans the same Interest Period, provided
that Base Rate Loans incurred pursuant to Section 1.10(b) shall
be considered part of the related Borrowing of Eurodollar Loans, and (ii) the
borrowing of Swingline Loans from the Swingline Lender on a given date.

 

“Business Day”
shall mean (i) for all purposes other than as covered by clause (ii) below,
any day except Saturday, Sunday and any day which shall be in New York, New
York, a legal holiday or a day on which banking institutions are authorized or
required by law or other government action to close and (ii) with respect
to all notices and determinations in connection with, and payments of principal
and interest on, Eurodollar Loans, any day which is a Business Day described in
clause (i) above and which is also a day for trading by and between banks
in U.S. dollar deposits in the interbank Eurodollar market.

 

“Calculation Period”
shall mean, in the case of any Permitted Acquisition or any other event
expressly required to be calculated on a Pro  Forma Basis pursuant
to the terms of this Agreement, the Test Period most recently ended prior to
the date of any such Permitted Acquisition or other event for which financial
statements have been delivered to the Lenders pursuant to this Agreement.

 

“Capital Expenditures”
shall mean, with respect to any Person, all expenditures by such Person which
should be capitalized in accordance with generally accepted accounting
principles and, without duplication, the amount of Capitalized Lease
Obligations incurred by such Person.

 

71

 

“Capitalized Lease
Obligations” shall mean, with respect to any Person, all rental obligations
of such Person which, under generally accepted accounting principles, are or
will be required to be capitalized on the books of such Person, in each case
taken at the amount thereof accounted for as indebtedness in accordance with
such principles.

 

“Cash Equivalents”
shall mean, as to any Person, (i) securities issued or directly and fully
guaranteed or insured by the United States or any agency, instrumentality or
sponsored corporation thereof and backed by the full faith and credit of the
United States, and in each case having maturities of not more than two years
from the date of acquisition, (ii) Dollar denominated time deposits,
certificates of deposit, overnight bank deposits and bankers’ acceptances with
any Lender or any commercial bank of recognized standing, having capital and
surplus in excess of $250,000,000 and the commercial paper of the holding
company of which, at the time of acquisition thereof, is rated at least A-2 or
the equivalent thereof by S&P or at least P-2 or the equivalent thereof by
Moody’s (or if at such time neither is issuing ratings, then a comparable
rating of another nationally recognized rating agency), or, if no such
commercial paper rating is available, a long-term debt rating, at the time of
acquisition thereof, of at least A or the equivalent thereof by S&P or at
least A-2 or the equivalent thereof by Moody’s (or if at such time neither is
issuing ratings, then a comparable rating of another nationally recognized
rating agency), (iii) repurchase obligations with a term of not more than
92 days for underlying securities of the types described in clause (i) above
and entered into with any commercial bank meeting the qualifications specified
in clause (ii) above, (iv) other investment instruments offered or
sponsored by financial institutions having capital and surplus in excess of
$250,000,000 and the commercial paper of the holding company of which, at the
time of acquisition thereof, is rated at least A-1 or the equivalent thereof by
S&P or at least P-1 or the equivalent thereof by Moody’s (or if at such
time neither is issuing ratings, then a comparable rating of another nationally
recognized rating agency), or, if no such commercial paper rating is available,
a long-term debt rating, at the time of acquisition thereof, of at least A+ or
the equivalent thereof by S&P or at least A-1 or the equivalent thereof by
Moody’s (or if at such time neither is issuing ratings, then a comparable
rating of another nationally recognized rating agency), (v) readily
marketable direct obligations issued by any state of the United States or any
political subdivision thereof having, at the time of acquisition thereof, one
of the two highest rating categories obtainable from either Moody’s or S&P
(or if at such time neither is issuing ratings, then a comparable rating of
another nationally recognized rating agency), (vi) commercial paper or
corporate bonds rated, at the time of acquisition thereof, at least A-1 or the
equivalent thereof by S&P or at least P-1 or the equivalent thereof by
Moody’s (or if at such time neither is issuing ratings, then a comparable
rating of another nationally recognized rating agency), in each case maturing
within two years after the date of acquisition, (vii) investments in money
market funds which invest substantially all their assets in securities of the
types described in clauses (i) through (vi) above, and (viii) in
the case of any Foreign Subsidiary of the Borrower, (x) certificates of
deposit (or comparable instruments) of any bank with which such Foreign
Subsidiary regularly transacts business and with maturities of not more than
six months from the date of acquisition by such Foreign Subsidiary, (y) overnight
deposits and demand deposit accounts maintained with any bank that such Foreign
Subsidiary regularly transacts business and (z) securities of the type and
maturity described in clause (i) above but issued by the principal
governmental authority in which such Foreign Subsidiary is organized so long as
such security has the highest rating available from either S&P or Moody’s.

 

72

 

“CERCLA” shall
mean the Comprehensive Environmental Response, Compensation, and Liability Act
of 1980, as the same has been amended and may hereafter be amended from time to
time, 42 U.S.C. § 9601 et  seq.

 

“Change of Control”
shall mean (i) any “Person” or “group” (as such terms are used in Sections
13(d) and 14(d) of the Exchange Act as in effect on the
Effective Date), (A) is or shall become the “beneficial owner” (as defined
in Rules 13(d)-3 and 13(d)-5 under the Exchange Act as in effect on the
Effective Date), directly or indirectly, of 35% or more of the outstanding
total Voting Power of the Borrower’s capital stock (determined on a fully
diluted basis) or (B) shall have obtained the power (whether or not
exercised) to elect a majority of the Borrower’s directors, (ii) at any
time the Board of Directors of the Borrower shall cease to consist of a
majority of Continuing Directors or (iii) a “change of control” (or
similar event) shall occur as provided in any Permitted Subordinated Debt
Document.

 

“Change of Law”
shall have the meaning provided in Section 10.06.

 

“Code” shall mean
the U.S. Internal Revenue Code of 1986, as amended from time to time, and the regulations
promulgated thereunder. Section references to the Code are to the Code as
in effect at the date of this Agreement and any subsequent provisions of the
Code amendatory thereof, supplemental thereto or substituted therefor.

 

“Collateral” shall
mean all property (whether real or personal) with respect to which any security
interests have been granted (or purported to be granted) by any Credit Party
pursuant to any Security Document, including, without limitation, all Pledge
Agreement Collateral, all Security Agreement Collateral, all Mortgaged
Properties and all cash and Cash Equivalents delivered as collateral pursuant
to Section 4.02 or 10.

 

“Collateral Agent”
shall mean the Administrative Agent acting as collateral agent for the Secured
Creditors pursuant to the Security Documents.

 

“Commitment Commission”
shall have the meaning provided in Section 3.01(a).

 

“Consolidated EBITDA”
shall mean, for any period, Consolidated Net Income for such period adjusted by
(x) adding thereto, without duplication and to the extent deducted in
arriving at Consolidated Net Income for such period:  (a) Consolidated Interest Expense; (b) provision
for taxes based on income; (c) the amount of all amortization of
intangibles and depreciation; (d) non-cash charges for the impairment of
goodwill or other intangibles or the write-off of goodwill, intangibles or
other assets; (e) the amortization or write-off of deferred financing,
legal and accounting costs with respect to the Transaction or any Permitted
Acquisition; and (f) the amount of all other non-cash charges or non-cash
losses, and (y) deducting therefrom, the amount of all cash payments
during such period that are associated with any non-cash charges or non-cash
losses that were added back to Consolidated Net Income in a previous period
pursuant to preceding clause (x)(f); and, in each case, without giving effect
to (i) any extraordinary gains, (ii) any gains or losses from sales
of assets other than from sales of inventory in the ordinary course of business
and (iii) any non-cash income; it being understood that in determining the
Total Leverage Ratio, Consolidated EBITDA for any period shall be calculated on
a Pro  Forma Basis to give effect to any Acquired Entity or
Business acquired

 

73

 

during such period
pursuant to a Permitted Acquisition and not subsequently sold or otherwise
disposed of by the Borrower or any of its Subsidiaries during such period.

 

“Consolidated
Indebtedness” shall mean, at any time, the remainder of (A) the sum
of, without duplication, (i) the aggregate principal amount of all
Indebtedness (or, if greater, the aggregate face amount of any Indebtedness
issued at a discount) of the Borrower and its Subsidiaries at such time
(including, without limitation, all Loans, letters of credit (including Letters
of Credit), Capitalized Lease Obligations and guaranties of other Indebtedness)
and (ii) the aggregate outstanding amount of all Attributable Debt of the
Borrower and its Subsidiaries at such time; provided that for purposes
of this definition, the amount of Indebtedness in respect of Interest Rate
Protection Agreements and Other Hedging Agreements shall be at any time the
unrealized net loss position, if any, of the Borrower and/or its Subsidiaries
thereunder on a marked-to-market basis determined no more than one month prior
to such time, minus (B) the aggregate amount of all Unrestricted cash and
Cash Equivalents of the Borrower and its Subsidiaries at such time in excess of
$50,000,000.

 

“Consolidated Interest
Coverage Ratio” shall mean, for any period, the ratio of Consolidated
EBITDA to Consolidated Interest Expense for such period.

 

“Consolidated Interest
Expense” shall mean, for any period, the sum of the total consolidated
interest expense of the Borrower and its Subsidiaries for such period
(calculated without regard to any limitations on the payment thereof) plus,
without duplication, (i) that portion of Capitalized Lease Obligations of
the Borrower and its Subsidiaries representing the interest factor for such
period, (ii) all Fees accrued during such period pursuant to Sections 3.01(a),
(b) and (c), (iii) all interest expense during such
period as set forth in Section 2.05(a) and (iv) the
interest component (or imputed interest) of any lease payment or other
off-balance sheet financing under Attributable Debt transactions paid by the
Borrower and its Subsidiaries for such period; provided that the
amortization or write-off of deferred financing, legal and accounting costs
with respect to the Transaction or any Permitted Acquisition in each case shall
be excluded from Consolidated Interest Expense to the extent same would
otherwise have been included therein.

 

“Consolidated Net
Income” shall mean, for any period, the net income (or loss) of the Borrower
and its Subsidiaries for such period, determined on a consolidated basis (after
any deduction for minority interests), provided that (i) in
determining Consolidated Net Income, the net income of any other Person which
is not a Subsidiary of the Borrower or is accounted for by the Borrower by the
equity method of accounting shall be included only to the extent of the payment
of cash dividends or cash distributions by such other Person to the Borrower or
a Subsidiary thereof during such period, (ii) the net income of any
Subsidiary of the Borrower shall be excluded to the extent that the declaration
or payment of cash dividends or similar cash distributions by that Subsidiary
of that net income is not at the date of determination permitted by operation
of its charter or any agreement, instrument or law applicable to such
Subsidiary, and (iii) except for determinations expressly required to be
made on a Pro  Forma Basis, the net income (or loss) of any Person
accrued prior to the date it becomes a Subsidiary of the Borrower or all or
substantially all of the property or assets of such Person are acquired by the
Borrower or a Subsidiary of the Borrower shall be excluded.

 

74

 

“Contingent Obligation”
shall mean, as to any Person, any obligation of such Person as a result of such
Person being a general partner of any other Person, unless the underlying
obligation is expressly made non-recourse as to such general partner, and any
obligation of such Person guaranteeing or intended to guarantee any
Indebtedness, leases, dividends or other obligations (“primary obligations”) of
any other Person (the “primary obligor”) in any manner, whether directly or
indirectly, including, without limitation, any obligation of such Person,
whether or not contingent, (i) to purchase any such primary obligation or
any property constituting direct or indirect security therefor, (ii) to
advance or supply funds (x) for the purchase or payment of any such
primary obligation or (y) to maintain working capital or equity capital of
the primary obligor or otherwise to maintain the net worth or solvency of the primary
obligor, (iii) to purchase property, securities or services primarily for
the purpose of assuring the owner of any such primary obligation of the ability
of the primary obligor to make payment of such primary obligation or (iv) otherwise
to assure or hold harmless the holder of such primary obligation against loss
in respect thereof; provided, however, that the term Contingent
Obligation shall not include endorsements of instruments for deposit or
collection in the ordinary course of business. The amount of any Contingent
Obligation shall be deemed to be an amount equal to the stated or determinable
amount of the primary obligation in respect of which such Contingent Obligation
is made or, if not stated or determinable, the maximum reasonably anticipated
liability in respect thereof (assuming such Person is required to perform
thereunder) as determined by such Person in good faith.

 

“Continuing Directors”
shall mean the directors of the Borrower on the Effective Date and each other
director, if such director’s nomination for election to the Board of Directors
of the Borrower is recommended by a majority of then Continuing Directors.

 

“Corporate Rating”
shall mean, on any day (i) in the case of S&P the corporate rating
assigned by S&P to the Borrower as in effect on such day, and (ii) in
the case of Moody’s, the corporate family rating assigned by Moody’s to the
Borrower as in effect on such day.

 

“Corporate Ratings
Condition” shall mean that (i) the Borrower’s Corporate Rating from
S&P is at least BB- (with at least a stable outlook) and (ii) the
Borrower’s Corporate Rating from Moody’s is at least Ba3 (with at least a
stable outlook); provided, however, (x) if either Rating Agency no longer
maintains a Corporate Rating, the Corporate Ratings Condition shall be
determined by reference to the Corporate Rating assigned by the other Rating
Agency and (y) if both Rating Agencies no longer maintain a Corporate
Rating, then the provisions of this Agreement relating to the Corporate Ratings
Condition shall no longer be applicable (it being understood that nothing in
this Agreement shall require the Borrower to pay to maintain a Corporate Rating).

 

“Credit Documents”
shall mean this Agreement and, after the execution and delivery thereof
pursuant to the terms of this Agreement, each Note, the Subsidiaries Guaranty
and each Security Document.

 

“Credit Event”
shall mean the making of any Loan or the issuance of any Letter of Credit.

 

“Credit Party”
shall mean the Borrower and each Subsidiary Guarantor.

 

75

 

“DBAG” shall mean
Deutsche Bank AG, in its individual capacity, and any successor corporation
thereto by merger, consolidation or otherwise.

 

“Default” shall
mean any event, act or condition which with notice or lapse of time, or both,
would constitute an Event of Default.

 

“Defaulting Lender”
shall mean any Lender with respect to which a Lender Default is in effect.

 

“Dividend” shall
mean, with respect to any Person, that such Person has declared or paid a
dividend, distribution or returned any equity capital to its stockholders,
partners or members or authorized or made any other distribution, payment or
delivery of property (other than common equity of such Person) or cash to its
stockholders, partners or members as such, or redeemed, retired, purchased or
otherwise acquired, directly or indirectly, for a consideration any shares of
any class of its capital stock or any partnership or membership interests
outstanding on or after the Effective Date (or any options or warrants issued
by such Person with respect to its capital stock or other equity interests), or
set aside any funds for any of the foregoing purposes, or shall have permitted
any of its Subsidiaries to purchase or otherwise acquire for a consideration
any shares of any class of the capital stock or any partnership or membership
interests of such Person outstanding on or after the Effective Date (or any
options or warrants issued by such Person with respect to its capital stock or
other equity interests). Without limiting the foregoing, “Dividends”
with respect to any Person shall also include all payments made or required to
be made by such Person with respect to any stock appreciation rights, plans,
equity incentive or achievement plans or any similar plans or setting aside of
any funds for the foregoing purposes.

 

“Dollars” and the
sign “$” shall each mean freely transferable lawful money of the United
States.

 

“Domestic Subsidiary”
shall mean each Subsidiary of the Borrower incorporated or organized in the
United States, any State thereof or the District of Columbia.

 

“Drawing” shall
have the meaning provided in Section 2.05(b).

 

“Effective Date”
shall have the meaning provided in Section 13.10.

 

“Eligible Transferee”
shall mean and include a commercial bank, an insurance company, a finance
company, a financial institution, any fund that invests in loans or any other “accredited
investor” (as defined in Regulation D of the Securities Act), but in any event
excluding the Borrower and its Subsidiaries and Affiliates.

 

“Environmental Claims”
shall mean any and all administrative, regulatory or judicial actions, suits,
demands, demand letters, directives, claims, liens, notices of noncompliance or
violation, investigations or proceedings relating in any way to any
Environmental Law or any permit issued, or any approval given, under any such
Environmental Law (hereafter, “Claims”), including, without limitation, (a) any
and all Claims by governmental or regulatory authorities for enforcement,
cleanup, removal, response, remedial or other actions or damages pursuant to
any applicable Environmental Law, and (b) any and all Claims by any

 

76

 

third party
seeking damages, contribution, indemnification, cost recovery, compensation or
injunctive relief in connection with alleged injury or threat of injury to
health, safety or the environment due to the presence of Hazardous Materials.

 

“Environmental Law”
shall mean any Federal, state, foreign or local statute, law, rule, regulation,
ordinance, code, guideline, policy and rule of common law now or hereafter
in effect and in each case as amended, and any judicial or administrative
interpretation thereof, including any judicial or administrative order, consent
decree or judgment, relating to the environment, employee health and safety or
Hazardous Materials, including, without limitation, CERCLA; the Resource Conservation
and Recovery Act, 42 U.S.C § 6901 et  seq.; the Federal Water
Pollution Control Act, 33 U.S.C. § 1251 et seq.; the Toxic Substances Control
Act, 15 U.S.C. § 2601 et  seq.; the Clean Air Act, 42 U.S.C. §
7401 et  seq.; the Safe Drinking Water Act, 42 U.S.C. § 3803 et
seq.; the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et  seq.;
the Emergency Planning and the Community Right-to-Know Act of 1986, 42 U.S.C. §
11001 et  seq.; the Hazardous Material Transportation Act, 49
U.S.C. § 1801 et  seq.; the Occupational Safety and Health Act, 29
U.S.C. § 651 et  seq.; and any state and local or foreign
counterparts or equivalents, in each case as amended from time to time.

 

“ERISA” shall mean
the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the regulations promulgated and rulings issued thereunder. Section references
to ERISA are to ERISA, as in effect at the date of this Agreement and any
subsequent provisions of ERISA, amendatory thereof, supplemental thereto or
substituted therefor.

 

“ERISA Affiliate”
shall mean each person (as defined in Section 3(9) of ERISA)
which together with the Borrower or a Subsidiary of the Borrower would be
deemed to be a “single employer” (i) within the meaning of Section 414(b),
(c), (m) or (o) of the Code or (ii) as a result of the Borrower
or a Subsidiary of the Borrower being or having been a general partner of such
person.

 

“ERISA Plan” shall
mean any pension plan as defined in Section 3(2) of ERISA,
which is maintained or contributed to by (or to which there is an obligation to
contribute of) the Borrower or a Subsidiary of the Borrower or an ERISA
Affiliate on or after the Effective Date, and each such plan for the five year
period immediately following the latest date (whether before or after the
Effective Date) on which the Borrower, a Subsidiary of the Borrower or an ERISA
Affiliate maintained, contributed to or had an obligation to contribute to such
plan.

 

“Eurodollar Loan”
shall mean each Revolving Loan designated as such by the Borrower at the time
of the incurrence thereof or conversion thereto.

 

“Eurodollar Rate”
shall mean (a) the offered quotation to first-class banks in the New York
interbank Eurodollar market by the Administrative Agent for Dollar deposits of
amounts in immediately available funds comparable to the outstanding principal
amount of the Eurodollar Loan of the Administrative Agent (in its capacity as a
Lender (or, if the Administrative Agent is not a Lender with respect thereto,
taking the average principal amount of the Eurodollar Loans then being made by
the various Lenders pursuant thereto)) with maturities comparable to the
Interest Period applicable to such Eurodollar Loan commencing two

 

77

 

Business Days
thereafter as of 10:00 A.M. (New York time) on the applicable Interest
Determination Date, divided (and rounded upward to the nearest 1/16 of 1%) by (b) a
percentage equal to 100% minus the then stated maximum rate of all reserve
requirements (including, without limitation, any marginal, emergency,
supplemental, special or other reserves required by applicable law) applicable
to any member bank of the Federal Reserve System in respect of Eurocurrency
funding or liabilities as defined in Regulation D (or any successor category of
liabilities under Regulation D).

 

“Event of Default”
shall have the meaning provided in Section 10.

 

“Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

 

“Existing Credit Agreement”
shall mean the Credit Agreement, dated as of January 5, 2004, among the
Borrower, the lenders party thereto and Deutsche Bank AG, New York Branch, as
administrative agent (as in effect on the Effective Date).

 

“Existing Indebtedness”
shall have the meaning provided in Section 7.20.

 

“Existing Indebtedness
Agreements” shall have the meaning provided in Section 5.13.

 

“Existing Letters of
Credit” shall have the meaning provided in Section 2.01(a).

 

“Facing Fee” shall
have the meaning provided in Section 3.01(c).

 

“Federal Funds Rate”
shall mean, for any period, a fluctuating interest rate equal for each day
during such period to the weighted average of the rates on overnight Federal
Funds transactions with members of the Federal Reserve System arranged by
Federal Funds brokers, as published for such day (or, if such day is not a
Business Day, for the next preceding Business Day) by the Federal Reserve Bank
of New York, or, if such rate is not so published for any day which is a
Business Day, the average of the quotations for such day on such transactions
received by the Administrative Agent from three Federal Funds brokers of
recognized standing selected by the Administrative Agent.

 

“Fees” shall mean
all amounts payable pursuant to or referred to in Section 3.01.

 

“Foreign Pension Plan”
shall mean each employee benefit plan, employment, bonus, incentive, stock
purchase and stock option plan, program, agreement or arrangement; and each
severance, termination pay, salary continuation, retention, accrued leave,
vacation, sick pay, sick leave, medical, life insurance, disability, accident,
profit-sharing, fringe benefit, pension, deferred compensation or other
retirement or superannuation plan, fund, program, agreement, commitment or
arrangement sponsored, established, maintained or contributed to, or required
to be contributed to, or with respect to which any liability is borne, outside
the fifty states of the United States of America, by the Borrower or any of its
Subsidiaries, including, without limitation, any such plan, fund, program,
agreement or arrangement sponsored by a government or governmental entity.

 

78

 

“Foreign Subsidiary”
shall mean each Subsidiary of the Borrower that is not a Domestic Subsidiary.

 

“Hazardous Materials”
shall mean (a) any petroleum or petroleum products, radioactive materials,
asbestos in any form that is or could become friable, urea formaldehyde foam
insulation, dielectric fluid containing levels of polychlorinated biphenyls, and
radon gas; (b) any chemicals, materials or substances defined as or
included in the definition of “hazardous substances,” “hazardous waste,” “hazardous
materials,” “extremely hazardous substances,” “restricted hazardous waste,” “toxic
substances,” “toxic pollutants,” “contaminants,” or “pollutants,” or words of
similar import, under any applicable Environmental Law; and (c) any other
chemical, material or substance, the exposure to, or Release of which is
prohibited, limited or regulated by any governmental authority.

 

“Health Care Laws”
shall mean any and all applicable current and future laws, rules, regulations,
codes, ordinances, orders, decrees, judgments, injunctions or binding
agreements issued, promulgated or entered into by the Food and Drug Administration,
the Health Care Financing Administration, the Department of Health and Human
Services (“HHS”), the Office of Inspector General of HHS, the Drug
Enforcement Administration or any other governmental authority, including any
state and/or local professional licensing laws, certificate of need laws and
state reimbursement laws, relating in any way to the conduct of the business of
the Borrower or any Subsidiary thereof and the provision of health care
services generally.

 

“Indebtedness”
shall mean, as to any Person, without duplication, (i) all indebtedness of
such Person for borrowed money or for the deferred purchase price of property
or services, (ii) the maximum amount available to be drawn or paid under
all letters of credit, bankers’ acceptances, bank guaranties and similar
obligations issued for the account of such Person and all unpaid drawings in
respect of such letters of credit, bankers’ acceptances and similar
obligations, (iii) all Indebtedness of the types described in clause (i),
(ii), (iv), (v), (vi), (vii) or (viii) of this definition secured by
any Lien on any property owned by such Person, whether or not such Indebtedness
has been assumed by such Person (provided that, if the Person has not
assumed or otherwise become liable in respect of such Indebtedness, such
Indebtedness shall be deemed to be in an amount equal to the fair market value
of the property to which such Lien relates as determined in good faith by such
Person), (iv) the aggregate amount of all Capitalized Lease Obligations of
such Person, (v) all obligations of such Person to pay a specified
purchase price for goods or services, whether or not delivered or accepted, i.e., take-or-pay and similar obligations, (vi) all
Contingent Obligations of such Person, (vii) all obligations under any
Interest Rate Protection Agreement, any Other Hedging Agreement or under any
similar type of agreement, and (viii) all Attributable Debt of such Person.
Notwithstanding the foregoing, Indebtedness shall not include trade payables
and accrued expenses incurred by any Person in accordance with customary
practices and in the ordinary course of business of such Person (including
pursuant to customer service contracts).

 

“Intercompany Loan”
shall have the meaning provided in Section 9.05(viii).

 

“Intercompany Note”
shall mean a promissory note, in the form of Exhibit M, evidencing
Intercompany Loans.

 

79

 

“Interest
Determination Date” shall mean, with respect to any Eurodollar Loan, the
second Business Day prior to the commencement of any Interest Period relating
to such Eurodollar Loan.

 

“Interest Period”
shall mean, as to any Borrowing of Eurodollar Loans, the interest period
applicable to such Borrowing of Eurodollar Loans selected pursuant to, and
otherwise subject to the provisions of, Section 1.09.

 

“Interest Rate
Protection Agreement” shall mean any interest rate swap agreement, interest
rate cap agreement, interest collar agreement, interest rate hedging agreement
or other similar agreement or arrangement.

 

“Investments”
shall have the meaning provided in Section 9.05.

 

“Issuing Lender”
shall mean each of (i) DBAG (except as otherwise provided in Section 12.09)
and (ii) and any other Lender reasonably acceptable to the Administrative
Agent and the Borrower which agrees to issue Letters of Credit hereunder. Any
Issuing Lender may, in its discretion, arrange for one or more Letters of
Credit to be issued by one or more Affiliates of such Issuing Lender, in which
case any such Affiliates also shall be an Issuing Lender hereunder.

 

“L/C Supportable
Obligations” shall mean (i) obligations of the Borrower or any of its
Subsidiaries with respect to workers’ compensation, surety bonds and other
similar statutory or regulatory obligations, (ii) obligations of the
Borrower or any of its Subsidiaries entered into in the ordinary course of
business (including, without limitation, with respect to customer contracts and
obligations to the seller of goods) and (iii) such other obligations of
the Borrower or any of its Subsidiaries as are reasonably acceptable to the
respective Issuing Lender and otherwise permitted to exist pursuant to the
terms of this Agreement (other than obligations in respect of Indebtedness
which is subordinated to any of the Obligations (including any Permitted
Subordinated Debt) or capital stock).

 

“Leaseholds” of
any Person shall mean all the right, title and interest of such Person as
lessee or licensee in, to and under leases or licenses of land, improvements
and/or fixtures.

 

“Lender” shall
mean each financial institution listed on Schedule I, as well as any
Person that becomes a “Lender” hereunder pursuant to Section 1.13
or 13.04(b).

 

“Lender Default”
shall mean (i) the refusal (which has not been retracted) or the failure
of a Lender to make available its portion of any Borrowing (including any
Mandatory Borrowing) or to fund its portion of any unreimbursed payment under Section 2.04(c) or
(ii) a Lender having notified in writing the Borrower and/or the
Administrative Agent that such Lender does not intend to comply with its
obligations under Section 1.01(a), 1.01(c) or 2.

 

“Letter of Credit”
shall have the meaning provided in Section 2.01(a).

 

“Letter of Credit Fee”
shall have the meaning provided in Section 3.01(b).

 

80

 

“Letter of Credit
Outstandings” shall mean, at any time, the sum of (i) the Stated
Amount of all outstanding Letters of Credit and (ii) the aggregate amount
of all Unpaid Drawings in respect of all Letters of Credit.

 

“Letter of Credit
Request” shall have the meaning provided in Section 2.03(a).

 

“Lien” shall mean
any mortgage, pledge, hypothecation, collateral assignment, deposit
arrangement, encumbrance, lien (statutory or other), preference, priority or
other security agreement of any kind or nature whatsoever (including, without
limitation, any conditional sale or other title retention agreement, any
financing or similar statement or notice filed under the UCC or any other
similar recording or notice statute, and any lease having substantially the
same effect as any of the foregoing).

 

“Loan” shall mean
each Revolving Loan and each Swingline Loan.

 

“Management Agreements”
shall have the meaning provided in Section 5.13.

 

“Mandatory Borrowing”
shall have the meaning provided in Section 1.01(c).

 

“Margin Stock”
shall have the meaning provided in Regulation U.

 

“Maricopa Sale”
shall mean the sale by the Borrower in one or more transactions of all or
substantially all of the assets associated with the 25 health care facilities
and related sites acquired by the Borrower pursuant to the Agreement dated July 17,
2007 among the Borrower and Magellan Health Services of Arizona, Inc., as
purchaser, and VO of Arizona, Inc., as seller.

 

“Material Adverse
Effect” shall mean (i) a material adverse effect on the business,
operations, property, assets, liabilities or condition (financial or otherwise)
of the Borrower and its Subsidiaries taken as a whole or (ii) a material
adverse effect (x) on the rights or remedies of the Lenders or the Administrative
Agent hereunder or under any other Credit Document or (y) on the ability
of any Credit Party to perform its obligations to the Lenders or Administrative
Agent hereunder or under any other Credit Document.

 

“Maximum Permitted
Consideration” shall mean, with respect to any Permitted Acquisition, the
sum (without duplication) of (i) the fair market value of the Borrower
Common Stock (based on (x) the closing and/or trading price of the
Borrower Common Stock on the date of such Permitted Acquisition on the stock
exchange on which the Borrower Common Stock is listed or the automated
quotation system on which the Borrower Common Stock is quoted, or (y) if
the Borrower Common Stock is not listed on an exchange or quoted on a quotation
system, the bid and asked prices of the Borrower Common Stock in the
over-the-counter market at the close of trading or (z) if the Borrower
Common Stock is not so listed, based on a good faith determination of the Board
of Directors of the Borrower) issued (or to be issued) as consideration in
connection with such Permitted Acquisition, (ii) the fair market value of
all Qualified Preferred Stock of the Borrower (based on a good faith
determination of the Board of Directors of the Borrower) issued (or to be
issued) as consideration in connection with such Permitted Acquisition, (iii) the
aggregate amount of all cash paid (or to be paid) by the Borrower or any of its
Subsidiaries in connection with such Permitted Acquisition (including payments
of fees, costs, expenses and taxes in connection therewith), (iv) the
aggregate principal amount of,

 

81

 

and other
obligations due under, all Indebtedness assumed, incurred and/or issued by the
Borrower or any of its Subsidiaries in connection with such Permitted
Acquisition, (v) the aggregate amount that could reasonably be expected to
be paid (based on good faith projections prepared by the Borrower) pursuant to
any earn-out, non-compete, consulting or deferred compensation or purchase price
adjustment) for such Permitted Acquisition and (vi) the fair market value
(based on a good faith determination of the Borrower) of all other
consideration payable in connection with such Permitted Acquisition.

 

“Maximum Revolving
Loan Amount” shall mean, at any time, the lesser of (x) $30,000,000
and (y) the Total Revolving Loan Commitment at such time.

 

“Maximum Swingline
Amount” shall mean $15,000,000.

 

“Minimum Borrowing
Amount” shall mean (i) for Revolving Loans, $1,000,000, and (ii) for
Swingline Loans, $250,000.

 

“Moody’s” shall
mean Moody’s Investors Service, Inc., or any successor corporation
thereto.

 

“Mortgage” shall
mean a mortgage substantially in the form of Exhibit N, with such
modifications thereto as any local counsel of the Collateral Agent may deem
necessary or appropriate.

 

“Mortgaged Property”
shall mean any Real Property owned by the Borrower or any other Credit Party
which is encumbered (or required to be encumbered) by a Mortgage.

 

“NAIC” shall mean
the National Association of Insurance Commissioners.

 

“Net Debt Proceeds”
shall mean, with respect to any incurrence or issuance of Indebtedness for
borrowed money, the cash proceeds (net of underwriting discounts and
commissions and other reasonable fees, expenses and costs associated therewith
including, without limitation, those of attorneys, accountants and other
professionals) received by the respective Person from the respective incurrence
of such Indebtedness for borrowed money.

 

“Net Insurance
Proceeds” shall mean, with respect to any Recovery Event, the cash proceeds
(net of reasonable costs and taxes incurred in connection with such Recovery
Event) received by the respective Person in connection with such Recovery
Event.

 

“Net Sale Proceeds”
shall mean, for any Asset Sale, the gross cash proceeds (including any cash
received by way of deferred payment pursuant to a promissory note, receivable
or otherwise, but only as and when received) received from such sale of assets,
net of (i) the reasonable costs of such sale (including fees and
commissions, attorney’s and other professional fees, payments of unassumed
liabilities relating to the assets sold and required payments of any
Indebtedness (other than Indebtedness secured pursuant to the Security
Documents) which is secured by the respective assets which were sold) and (ii) the
incremental taxes paid or payable as a result of such Asset Sale.

 

82

 

“Non-Defaulting Lender”
shall mean and include each Lender other than a Defaulting Lender.

 

“Non-U.S. Lender”
shall mean each Lender, each Issuing Lender or the Administrative Agent in each
case to the extent that any such Person is not a “United States person”
(as such term is defined in Section 7701(a)(30) of the Code) for U.S.
Federal income tax purposes.

 

“Note” shall mean
each Revolving Note and the Swingline Note.

 

“Notice of Borrowing”
shall have the meaning provided in Section 1.03(a).

 

“Notice of Conversion/Continuation”
shall have the meaning provided in Section 1.06.

 

“Notice Office”
shall mean (i) for credit notices, the office of the Administrative Agent
located at 60 Wall Street, New York, New York, 10005, Attention:  Carin Keegan, Telephone No.: (212) 250-6083,
and Telecopier No.: (212) 797-5692, and (ii) for operational notices, the
office of the Administrative Agent located at 100 Plaza One, 8th Floor, Jersey
City, NJ 07311, Attention: Dierdre Wall, Telephone No.: (201) 593-2170 and
Telecopier No.: (201) 593-2314, or such other office or person as the
Administrative Agent may hereafter designate in writing as such to the other
parties hereto.

 

“Obligations”
shall mean all amounts owing to the Administrative Agent, the Collateral Agent,
any Issuing Lender, the Swingline Lender or any Lender pursuant to the terms of
this Agreement or any other Credit Document, including, without limitation, all
amounts in respect of any principal, interest (including any interest accruing
subsequent to the filing of a petition in bankruptcy, reorganization or similar
proceeding at the rate provided for in this Agreement, whether or not such
interest is an allowed claim under any such proceeding or under applicable
state, federal or foreign law), penalties, fees, expenses, indemnifications,
reimbursements (including Unpaid Drawings with respect to Letters of Credit),
damages and other liabilities, and guarantees of the foregoing amounts.

 

“Other Hedging
Agreements” shall mean any foreign exchange contracts, currency swap
agreements, commodity agreements or other similar arrangements, or arrangements
designed to protect against fluctuations in currency values or commodity
prices.

 

“Participant”
shall have the meaning provided in Section 2.04(a).

 

“Payment Office”
shall mean the office of the Administrative Agent located at 100 Plaza One, 8th
Floor, Jersey City, NJ 07311 or such other office as the Administrative Agent
may hereafter designate in writing as such to the other parties hereto.

 

“PBGC” shall mean
the Pension Benefit Guaranty Corporation established pursuant to Section 4002
of ERISA, or any successor thereto.

 

“Permitted Acquisition”
shall mean the acquisition by the Borrower or a Wholly-Owned Subsidiary of the
Borrower that is a Subsidiary Guarantor of an Acquired Entity or

 

83

 

Business
(including by way of merger of such Acquired Entity or Business with and into
the Borrower (so long as the Borrower is the surviving corporation) or a
Wholly-Owned Subsidiary of the Borrower that is a Subsidiary Guarantor (so long
as such Wholly-Owned Subsidiary is the surviving corporation)), provided
that (in each case) (A) the consideration paid or to be paid by the
Borrower or such Wholly-Owned Subsidiary consists solely of cash (including
proceeds of Loans), the issuance or incurrence of Indebtedness otherwise
permitted by Section 9.04, the assumption/acquisition of any
Indebtedness (calculated at face value) which is permitted to remain
outstanding in accordance with the requirements of Section 9.04
and/or the issuance of Borrower Common Stock or Qualified Preferred Stock of
the Borrower, (B) in the case of the acquisition of 100% of the capital
stock or other equity interests of any Person (including way of merger), such
Person shall own no capital stock or other equity interests of any other Person
(excluding de minimis amounts) unless either (x) such Person and/or its
Wholly-Owned Subsidiaries own 100% of the capital stock or other equity
interests of such other Person or (y) (1) such Person and/or its
Wholly-Owned Subsidiaries own at least 90% of the consolidated assets of such
Person and its Subsidiaries and (2) any non-Wholly-Owned Subsidiary of
such Person was non-Wholly Owned prior to the date of such Permitted Acquisition
of such Person, (C) the Acquired Entity or Business acquired pursuant to
the respective Permitted Acquisition is in a business permitted by Section 9.12,
and (D) all applicable requirements of Sections 8.15, 9.02
and 9.13 applicable to Permitted Acquisitions are satisfied. Notwithstanding
anything to the contrary contained in the immediately preceding sentence, an
acquisition which does not otherwise meet the requirements set forth above in
the definition of “Permitted Acquisition” shall constitute a Permitted
Acquisition if, and to the extent, the Required Lenders agree in writing, prior
to the consummation thereof, that such acquisition shall constitute a Permitted
Acquisition for purposes of this Agreement.

 

“Permitted Encumbrance”
shall mean, with respect to any Mortgaged Property, such exceptions to title as
are set forth in the mortgage title policy (or binding commitment) delivered to
the Administrative Agent with respect thereto, all of which exceptions must be
acceptable to the Administrative Agent in its reasonable discretion.

 

“Permitted Liens”
shall have the meaning provided in Section 9.01.

 

“Permitted
Subordinated Debt” shall mean any subordinated Indebtedness of the Borrower
incurred in connection with, and to finance, a Permitted Acquisition, which
Indebtedness may be guaranteed on a subordinated basis by one or more
Subsidiary Guarantors and all of the terms and conditions of which (including,
without limitation, with respect to interest rate, amortization, redemption
provisions, maturities, covenants, defaults, remedies, guaranties, standstill
provisions, cash pay limitations and subordination provisions) and the
documentation therefor are reasonably satisfactory to the Administrative Agent,
as such Indebtedness may be amended, modified and/or supplemented from time to
time in accordance with the terms hereof and thereof; provided, that in
any event, unless the Required Lenders otherwise expressly consent in writing
prior to the issuance thereof, (i) no such Indebtedness shall be secured
by any asset of the Borrower or any of its Subsidiaries, (ii) no such
Indebtedness shall be guaranteed by any Person other than a Subsidiary
Guarantor, (iii) no such Indebtedness shall be subject to scheduled
amortization, redemption, sinking fund or similar payment or have a final
maturity, in either case prior to the date occurring one year following the
Revolving Loan Maturity Date, (iv) any “change of control” covenant
included in the documentation governing

 

84

 

such Indebtedness
shall provide that, before the mailing of any required “notice of redemption”
in connection therewith, the Borrower shall covenant to (I) obtain the
consent of the Required Lenders or (II) pay the Obligations in full in
cash and terminate the Total Revolving Loan Commitment, (v) the
documentation governing such Indebtedness shall not include any financial
maintenance covenants, and (vi) the subordination provisions contained
therein shall provide for a permanent block on payments with respect to such
Indebtedness upon the occurrence and continuation of a payment default with
respect to “senior debt” and cover all obligations under Interest Rate
Protection Agreements and Other Hedging Agreements. The incurrence of Permitted
Subordinated Debt shall be deemed to be a representation and warranty by the
Borrower that all conditions thereto have been satisfied in all material
respects and that the incurrence of such Permitted Subordinated Debt is
permitted in accordance with the terms of this Agreement, which representation
and warranty shall be deemed to be a representation and warranty for all
purposes hereunder, including, without limitation, Sections 7 and 10.

 

“Permitted
Subordinated Debt Documents” shall mean, on and after the execution and
delivery thereof, each note, instrument, agreement, guaranty and other
documents relating to each incurrence of Permitted Subordinated Debt, as the
same may be amended, modified and/or supplemented from time to time in
accordance with the terms hereof and thereof.

 

“Person” shall
mean any individual, partnership, joint venture, firm, corporation,
association, limited liability company, trust or other enterprise or any
government or political subdivision or any agency, department or
instrumentality thereof.

 

“Pledge Agreement”
shall have the meaning provided in Section 5.08.

 

“Pledge Agreement
Collateral” shall mean all “Collateral” as defined in the Pledge
Agreement.

 

“Pledgee” shall
have the meaning provided in the Pledge Agreement.

 

“Primary Concentration
Account” shall mean the principal concentration and disbursement accounts
utilized by the Borrower for its and its Wholly-Owned Subsidiaries’ cash
management systems, with the initial Primary Concentration Account being
account number 2000026932396 maintained at Wachovia Bank, N.A., at 7 Saint Paul
Street, Baltimore, Maryland.

 

“Prime Lending Rate”
shall mean the rate which the Administrative Agent announces from time to time
as its prime lending rate, the Prime Lending Rate to change when and as such
prime lending rate changes. The Prime Lending Rate is a reference rate and does
not necessarily represent the lowest or best rate actually charged to any
customer by the Administrative Agent, which may make commercial loans or other
loans at rates of interest at, above or below the Prime Lending Rate.

 

“Pro Forma Basis” shall mean, in connection with any
calculation of compliance with any financial covenant or financial term, the
calculation thereof after giving effect on a pro forma
basis to (w) the incurrence of any Indebtedness (other than revolving
Indebtedness, except to the extent same is incurred to refinance other
outstanding Indebtedness or to finance a Permitted Acquisition, a Dividend
pursuant to Section 9.03(iii), an Investment pursuant to

 

85

 

Section 9.05(xiv) or a redemption or repurchase pursuant
to Section 9.10(i)(B)) after the first day of the relevant
Calculation Period as if such Indebtedness had been incurred (and the proceeds
thereof applied) on the first day of the relevant Calculation Period, (x) the
permanent repayment of any Indebtedness (other than revolving Indebtedness
except to the extent accompanied by a corresponding permanent commitment
reduction) after the first day of the relevant Calculation Period as if such
Indebtedness had been retired or redeemed on the first day of the relevant
Calculation Period, (y) any Asset Sale consummated after the first day of
the relevant Calculation Period as if such Asset Sale (and the application of
the proceeds therefrom) had occurred (and the proceeds therefrom had been
applied) on the first day of the relevant Calculation Period, and/or (z) the
Permitted Acquisition, if any, then being consummated as well as any other
Permitted Acquisition consummated after the first day of the relevant
Calculation Period and on or prior to the date of the respective Permitted
Acquisition then being effected, as the case may be, with the following rules to
apply in connection therewith:

 

(i)                                     all
Indebtedness (x) (other than revolving Indebtedness, except to the extent
same is incurred to refinance other outstanding Indebtedness or to finance a
Permitted Acquisition, a Dividend pursuant to Section 9.03(iii), an
Investment pursuant to Section 9.05(xiv) or a redemption or
repurchase pursuant to Section 9.10(i)(B)) incurred or issued after
the first day of the relevant Calculation Period (whether incurred to finance a
Permitted Acquisition, to refinance Indebtedness or otherwise) shall be deemed
to have been incurred or issued (and the proceeds thereof applied) on the first
day of the respective Calculation Period and remain outstanding through the
date of determination and (y) (other than revolving Indebtedness except to
the extent accompanied by a corresponding permanent commitment reduction)
permanently retired or redeemed after the first day of the relevant Calculation
Period shall be deemed to have been retired or redeemed on the first day of the
respective Calculation Period and remain retired through the date of
determination;

 

(ii)                                  all
Indebtedness assumed to be outstanding pursuant to preceding clause (i) shall
be deemed to have borne interest at (x) the rate applicable thereto, in
the case of fixed rate indebtedness, or (y) at the rate which would have
been applicable thereto on the last day of the respective Calculation Period,
in the case of floating rate Indebtedness (although interest expense with
respect to any Indebtedness for periods while same was actually outstanding
during the respective period shall be calculated using the actual rates
applicable thereto while same was actually outstanding); and

 

(iii)                               in
making any determination of Consolidated EBITDA, pro  forma effect
shall be given to any Asset Sale or Permitted Acquisition consummated during
the periods described above, with such Consolidated EBITDA to be determined as
if such Asset Sale or Permitted Acquisition was consummated on the first day of
the relevant Calculation Period, and, in the case of any Permitted Acquisition,
taking into account factually supportable and identifiable cost savings and
expenses directly attributable to any such Permitted Acquisition which would
otherwise be accounted for as an adjustment pursuant to Article 11 of
Regulation S-X under the Securities Act, as if such cost savings or expenses
were realized on the first day of the respective period.

 

86

 

“Projections”
shall mean the projections that were prepared by or on behalf of the Borrower
in connection with the Transaction and delivered to the Agents on February 29,
2008.

 

“Qualified Preferred
Stock” shall mean any preferred stock of the Borrower so long as the terms
of any such preferred stock (w) do not contain any mandatory put,
redemption, repayment, sinking fund or other similar provision prior to the one
year anniversary of the Revolving Loan Maturity Date, (x) do not require
the cash payment of dividends or distributions, (y) do not contain any
covenants (other than periodic reporting covenants) and (z) are otherwise
reasonably satisfactory to the Administrative Agent.

 

“Quarterly Payment
Date” shall mean the 15th day of each June, September, December and March occurring
after the Effective Date, commencing on June 15, 2008.

 

“Rating Agency”
shall mean each of Moody’s and S&P.

 

“Real Property” of
any Person shall mean all the right, title and interest of such Person in and
to land, improvements and fixtures, including Leaseholds.

 

“Recovery Event”
shall mean the receipt by the Borrower or any of its Subsidiaries of any cash
insurance proceeds or condemnation awards (but excluding (x) insurance
policies benefiting third parties and (y) business interruption insurance
policies) payable (i) by reason of theft, loss, physical destruction,
damage, taking or any other similar event with respect to any property or
assets of the Borrower or any of its Subsidiaries and (ii) under any
policy of insurance required to be maintained under Section 8.03.

 

“Refinancing”
shall mean the repayment of all outstanding loans and all other obligations
(and the termination of all commitments) under the Existing Credit Agreement.

 

“Register” shall
have the meaning provided in Section 13.15.

 

“Regulation D”
shall mean Regulation D of the Board of Governors of the Federal Reserve System
as from time to time in effect and any successor to all or a portion thereof
establishing reserve requirements.

 

“Regulation T”
shall mean Regulation T of the Board of Governors of the Federal Reserve System
as from time to time in effect and any successor to all or a portion thereof.

 

“Regulation U”
shall mean Regulation U of the Board of Governors of the Federal Reserve System
as from time to time in effect and any successor to all or a portion thereof.

 

“Regulation X”
shall mean Regulation X of the Board of Governors of the Federal Reserve System
as from time to time in effect and any successor to all or a portion thereof.

 

“Release” shall
mean actively or passively disposing, discharging, injecting, spilling,
pumping, leaking, leaching, dumping, emitting, escaping, emptying, pouring,
seeping,

 

87

 

migrating or the
like, into or upon any land or water or air, or otherwise entering into the
environment.

 

“Replaced Lender”
shall have the meaning provided in Section 1.13.

 

“Replacement Lender”
shall have the meaning provided in Section 1.13.

 

“Reportable Event”
shall mean an event described in Section 4043(c) of ERISA with
respect to an ERISA Plan that is subject to Title IV of ERISA other than those
events as to which the 30-day notice period is waived under subsection .22,
..23, .25, .27 or .28 of PBGC Regulation Section 4043.

 

“Required Lenders”
shall mean, at any time, Non-Defaulting Lenders the sum of whose outstanding
Revolving Loan Commitments at such time (or, after the termination of such
Revolving Loan Commitments, outstanding Revolving Loans and RL Percentages of (x) outstanding
Swingline Loans at such time and (y) Letter of Credit Outstandings at such
time) represents at least a majority of the sum of the Total Revolving Loan
Commitment in effect at such time less the Revolving Loan Commitments of all
Defaulting Lenders at such time (or, after the termination of such Revolving
Loan Commitment, the sum of then total outstanding Revolving Loans of
Non-Defaulting Lenders and the aggregate RL Percentages of all Non-Defaulting
Lenders of the total outstanding Swingline Loans and Letter of Credit
Outstandings at such time).

 

“Restricted” shall
mean, when referring to cash or Cash Equivalents of the Borrower or any of its
Subsidiaries, that such cash or Cash Equivalents (i) appears (or would be
required to appear) as “restricted” on a consolidated balance sheet of the
Borrower or of any such Subsidiary, (ii) are subject to any Lien in favor
of any Person other than the Collateral Agent for the benefit of the Secured
Creditors or (iii) are not otherwise generally available for use by the
Borrower or any of its Subsidiaries.

 

“Returns” shall
have the meaning provided in Section 7.09.

 

“Revolving Loan”
shall have the meaning provided in Section 1.01(a).

 

“Revolving Loan
Commitment” shall mean, for each Lender, the amount set forth opposite such
Lender’s name in Schedule I directly below the column entitled “Revolving
Loan Commitment,” as the same may be (x) reduced from time to time or
terminated pursuant to Sections 3.02, 3.03 and/or 10, as
applicable, or (y) adjusted from time to time as a result of assignments
to or from such Lender pursuant to Section 1.13 or 13.04(b).

 

“Revolving Loan
Maturity Date” shall mean April 29, 2009.

 

“Revolving Note”
shall have the meaning provided in Section 1.05(a).

 

“RL Percentage” of
any Lender at any time shall mean a fraction (expressed as a percentage) the
numerator of which is the Revolving Loan Commitment of such Lender at such time
and the denominator of which is the Total Revolving Loan Commitment at such
time, provided that if the RL Percentage of any Lender is to be
determined after the Total Revolving

 

88

 

Loan Commitment
has been terminated, then the RL Percentage of such Lender shall be determined
immediately prior (and without giving effect) to such termination.

 

“S&P” shall
mean Standard & Poor’s Rating Services, a division of McGraw-Hill, Inc.,
or any successor thereto.

 

“Sale and Leaseback
Transaction” shall mean any arrangement, directly or indirectly, whereby a
seller or transferor shall sell or otherwise transfer any real or personal
property and then or thereafter lease, or repurchase under an extended purchase
contract, conditional sales or other title retention agreement, the same or
similar property.

 

“SEC” shall have
the meaning provided in Section 8.01(g).

 

“Section 4.04
Indemnitee” shall have the meaning provided in Section 4.04(a).

 

“Section 4.04(b)(ii) Certificate”
shall have the meaning provided in Section 4.04(b)(ii).

 

“Secured Cash
Management Arrangements” shall have the meaning provided in the respective
Security Documents and the Subsidiaries Guaranty.

 

“Secured Creditors”
shall have the meaning assigned that term in the respective Security Documents.

 

“Securities Act”
shall mean the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

 

“Security Agreement”
shall have the meaning provided in Section 5.10.

 

“Security Agreement
Collateral” shall mean all “Collateral” as defined in the Security
Agreement.

 

“Security Documents”
shall mean and include the Pledge Agreement, the Security Agreement, each
Mortgage and each other Additional Security Document.

 

“Shareholders’
Agreements” shall have the meaning provided in Section 5.13.

 

“Specified Default”
shall mean any Default under Section 10.01 or 10.05.

 

“Stated Amount” of
each Letter of Credit shall mean, at any time, the maximum amount available to
be drawn thereunder (in each case determined without regard to whether any
conditions to drawing could then be met).

 

“Subsidiaries Guaranty”
shall have the meaning provided in Section 5.09.

 

“Subsidiary” shall
mean, as to any Person, (i) any corporation more than 50% of whose stock
of any class or classes having by the terms thereof ordinary voting power to
elect a majority of the directors of such corporation (irrespective of whether
or not at the time stock of any class or classes of such corporation shall have
or might have voting power by reason of the

 

89

 

happening of any
contingency) is at the time owned by such Person and/or one or more
Subsidiaries of such Person and (ii) any partnership, limited liability
company, association, joint venture or other entity in which such Person and/or
one or more Subsidiaries of such Person has more than a 50% equity interest at
the time.

 

“Subsidiary Guarantor”
shall mean each Wholly-Owned Domestic Subsidiary of the Borrower and, to the
extent required by Section 8.13, each Wholly-Owned Foreign
Subsidiary of the Borrower other than, in each case, any such Wholly-Owned
Subsidiary that is (but only for so long as it is) a Wholly-Owned Specified
Subsidiary.

 

“Swingline Expiry Date”
shall mean that date which is five Business Days prior to the Revolving Loan
Maturity Date.

 

“Swingline Lender”
shall mean DBAG for so long as DBAG is the Administrative Agent hereunder and
thereafter shall mean the successor Administrative Agent in its individual
capacity.

 

“Swingline Loan”
shall have the meaning provided in Section 1.01(c).

 

“Swingline Note”
shall have the meaning provided in Section 1.05(a).

 

“Syndication Agent”
shall mean Citibank, N.A.

 

“Tax Sharing
Agreements” shall have the meaning provided in Section 5.13.

 

“Taxes” shall have
the meaning provided in Section 4.04(a).

 

“Test Period”
shall mean each period of four consecutive fiscal quarters of the Borrower then
last ended (in each case taken as one accounting period).

 

“Total Leverage Ratio”
shall mean, at any time, the ratio of Consolidated Indebtedness at such time to
Consolidated EBITDA for the Test Period then most recently ended.

 

“Total Revolving Loan
Commitment” shall mean, at any time, the sum of the Revolving Loan
Commitments of each of the Lenders at such time.

 

“Total Unutilized
Revolving Loan Amount” shall mean, at any time, an amount equal to the
remainder of (x) the Maximum Revolving Loan Amount then in effect less (y) the
aggregate principal amount of all Revolving Loans and Swingline Loans then
outstanding.

 

“Total Unutilized
Revolving Loan Commitment” shall mean, at any time, an amount equal to the
remainder of (x) the Total Revolving Loan Commitment then in effect less (y) the
sum of the aggregate principal amount of all Revolving Loans and Swingline
Loans then outstanding plus the aggregate amount of all Letter of Credit
Outstandings at such time.

 

“Transaction”
shall mean (i) the entering into of the Credit Documents and the
incurrence of Loans and issuance of Letters of Credit on the Effective Date, (ii) the

 

90

 

consummation of
the Refinancing on the Effective Date and (iii) the payment of all fees
and expenses in connection with the foregoing.

 

“Type” shall mean
the type of Loan determined with regard to the interest option applicable
thereto, i.e., whether a Base Rate Loan or
a Eurodollar Loan.

 

“UCC” shall mean
the Uniform Commercial Code as from time to time in effect in the relevant
jurisdiction.

 

“Unfunded Current
Liability” of any ERISA Plan shall mean the amount, if any, by which the
value of the accumulated plan benefits under the ERISA Plan determined on a
plan termination basis in accordance with actuarial assumptions at such time
consistent with those prescribed by the PBGC for purposes of Section 4044
of ERISA, exceeds the fair market value of all plan assets allocable to such
liabilities under Title IV of ERISA (excluding any accrued but unpaid
contribution).

 

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

 

“Unpaid Drawing”
shall have the meaning provided in Section 2.05(a).

 

“Unrestricted”
shall mean, when referring to cash or Cash Equivalents of the Borrower or any
of its Subsidiaries, that such cash or Cash Equivalents are not Restricted.

 

“Unutilized Revolving
Loan Commitment” shall mean, with respect to any Lender at any time, such
Lender’s Revolving Loan Commitment at such time less the sum of (i) the
aggregate outstanding principal amount of all Revolving Loans made by such
Lender at such time and (ii) such Lender’s RL Percentage of the Letter of
Credit Outstandings at such time.

 

“U.S. Lender”
shall mean each Lender, each Issuing Lender or the Administrative Agent that is
a “United States person” (as such term is defined in Section 7701(a)(30)
of the Code) for U.S. Federal income tax purposes.

 

“Voting Power”
shall mean, with respect to any class or classes of capital stock of the
Borrower (or any class or classes of capital stock then convertible into such
capital stock at the option of the holders thereof), the voting power entitled
to vote in the election of directors of the Borrower.

 

“Wholly-Owned Domestic
Subsidiary” shall mean, as to any Person, any Wholly-Owned Subsidiary of
such Person which is also a Domestic Subsidiary of such Person.

 

“Wholly-Owned Foreign
Subsidiary” shall mean, as to any Person, any Wholly-Owned Subsidiary of
such Person which is also a Foreign Subsidiary of such Person.

 

“Wholly-Owned
Specified Subsidiary” shall mean any Wholly-Owned Subsidiary of the
Borrower that is prohibited from entering into any Credit Document because to
do so either (x) would violate a law, regulation, rule, order, approval,
license or other restriction applicable to such Wholly-Owned Subsidiary due to
the regulated nature of such Wholly-Owned Subsidiary’s operations and issued or
imposed by any governmental authority having jurisdiction

 

91

 

over such
Wholly-Owned Subsidiary or (y) would reasonably be expected to cause such
Wholly-Owned Subsidiary to fail to satisfy a net worth, net equity or capital
requirement or similar calculation or requirement imposed on such Wholly-Owned
Subsidiary by any governmental authority having jurisdiction over such
Wholly-Owned Subsidiary due to the regulated nature of such Wholly-Owned
Subsidiary’s operations.

 

“Wholly-Owned
Subsidiary” shall mean, as to any Person, (i) any corporation 100% of
whose capital stock is at the time owned by such Person and/or one or more
Wholly-Owned Subsidiaries of such Person and (ii) any partnership,
association, joint venture or other entity in which such Person and/or one or
more Wholly-Owned Subsidiaries of such Person has a 100% equity interest at
such time.

 

SECTION 12.                          The Administrative Agent.

 

12.01  Appointment.  The Lenders hereby irrevocably designate and
appoint DBAG as Administrative Agent (for purposes of this Section 12
and Section 13.01, the term “Administrative Agent” also
shall include DBAG in its capacity as Collateral Agent pursuant to the Security
Documents) to act as specified herein and in the other Credit Documents. Each
Lender hereby irrevocably authorizes, and each holder of any Note by the
acceptance of such Note shall be deemed irrevocably to authorize, the
Administrative Agent to take such action on its behalf under the provisions of
this Agreement, the other Credit Documents and any other instruments and
agreements referred to herein or therein and to exercise such powers and to
perform such duties hereunder and thereunder as are specifically delegated to
or required of the Administrative Agent by the terms hereof and thereof and
such other powers as are reasonably incidental thereto. The Administrative
Agent may perform any of its respective duties hereunder by or through its
officers, directors, agents, employees or affiliates.

 

12.02  Nature of Duties.  (a) The Administrative Agent shall not
have any duties or responsibilities except those expressly set forth in this
Agreement and in the other Credit Documents. Neither the Administrative Agent
nor any of its officers, directors, agents, employees or affiliates shall be
liable for any action taken or omitted by it or them hereunder or under any
other Credit Document or in connection herewith or therewith, unless caused by
its or their gross negligence or willful misconduct (as determined by a court
of competent jurisdiction in a final and non-appealable decision). The duties
of the Administrative Agent shall be mechanical and administrative in nature;
the Administrative Agent shall not have by reason of this Agreement or any
other Credit Document a fiduciary relationship in respect of any Lender or the
holder of any Note; and nothing in this Agreement or in any other Credit
Document, expressed or implied, is intended to or shall be so construed as to
impose upon the Administrative Agent any obligations in respect of this
Agreement or any other Credit Document except as expressly set forth herein or
therein.

 

(b)                                 Notwithstanding
any other provision of this Agreement or any provision of any other Credit
Document, (i) Deutsche Bank Securities Inc. and Citigroup Global Markets
Inc. are named as Joint Lead Arrangers and Book Running Managers for
recognition purposes only and (ii) Citibank N.A. is named as Syndication
Agent for recognition purposes only, and in their respective capacities as such
shall have no powers, duties, responsibilities or liabilities with respect to
this Agreement or the other Credit Documents or the transactions contemplated
hereby

 

92

 

and thereby;
it being understood and agreed that Deutsche Bank Securities Inc., Citigroup
Global Markets Inc. and Citibank, N.A. in such capacities shall be entitled to
all indemnification and reimbursement rights in favor of the Administrative
Agent as, and to the extent, provided for under Sections 12.06 and 13.01.
Without limitation of the foregoing, none of Deutsche Bank Securities Inc.,
Citigroup Global Markets Inc. nor Citibank, N.A. in such respective capacities
shall have, solely by reason of this Agreement or any other Credit Documents,
any fiduciary relationship in respect of any Lender or any other Person.

 

12.03  Lack of Reliance on the Administrative
Agent.  Independently and without
reliance upon the Administrative Agent, each Lender and the holder of each
Note, to the extent it deems appropriate, has made and shall continue to make (i) its
own independent investigation of the financial condition and affairs of the
Borrower and its Subsidiaries in connection with the making and the continuance
of the Loans and Letters of Credit and the taking or not taking of any action
in connection herewith and (ii) its own appraisal of the creditworthiness
of the Borrower and its Subsidiaries and, except as expressly provided in this
Agreement, the Administrative Agent shall not have any duty or responsibility,
either initially or on a continuing basis, to provide any Lender or the holder
of any Note with any credit or other information with respect thereto, whether
coming into its possession before the making of the Loans or the issuance of
any Letter of Credit or at any time or times thereafter. The Administrative
Agent shall not be responsible to any Lender or the holder of any Note for any
recitals, statements, information, representations or warranties herein or in
any document, certificate or other writing delivered in connection herewith or
for the execution, effectiveness, genuineness, validity, enforceability,
perfection, collectibility, priority or sufficiency of this Agreement or any
other Credit Document or the financial condition of the Borrower or any of its
Subsidiaries or be required to make any inquiry concerning either the
performance or observance of any of the terms, provisions or conditions of this
Agreement or any other Credit Document, or the financial condition of the
Borrower or any of its Subsidiaries or the existence or possible existence of
any Default or Event of Default.

 

12.04  Certain Rights of the Administrative Agent.
 If the Administrative Agent requests
instructions from the Required Lenders with respect to any act or action
(including failure to act) in connection with this Agreement or any other
Credit Document, the Administrative Agent shall be entitled to refrain from
such act or taking such action unless and until the Administrative Agent shall
have received instructions from the Required Lenders; and the Administrative
Agent shall not incur liability to any Lender by reason of so refraining. Without
limiting the foregoing, neither any Lender nor the holder of any Note shall
have any right of action whatsoever against the Administrative Agent as a
result of the Administrative Agent acting or refraining from acting hereunder
or under any other Credit Document in accordance with the instructions of the
Required Lenders.

 

12.05  Reliance.  The Administrative Agent shall be entitled to
rely, and shall be fully protected in relying, upon any note, writing,
resolution, notice, statement, certificate, telex, teletype or telecopier
message, cablegram, radiogram, order or other document or telephone message signed,
sent or made by any Person that the Administrative Agent believed to be the
proper Person, and, with respect to all legal matters pertaining to this
Agreement and any other Credit Document and its duties hereunder and
thereunder, upon advice of counsel selected by the Administrative Agent.

 

93

 

12.06  Indemnification.  To the extent the Administrative Agent (or
any affiliate thereof) is not reimbursed and indemnified by the Borrower, the
Lenders will reimburse and indemnify the Administrative Agent (and any
affiliate thereof) in proportion to their respective “percentage” as used in
determining the Required Lenders (determined as if there were no Defaulting
Lenders) for and against any and all liabilities, obligations, losses, damages,
penalties, claims, actions, judgments, costs, expenses or disbursements of
whatsoever kind or nature which may be imposed on, asserted against or incurred
by the Administrative Agent (or any affiliate thereof) in performing its duties
hereunder or under any other Credit Document (including, without limitation,
any account control agreements entered into pursuant to the Security Agreement)
or in any way relating to or arising out of this Agreement or any other Credit
Document (including, without limitation, any account control agreements entered
into pursuant to the Security Agreement); provided that no Lender shall
be liable for any portion of such liabilities, obligations, losses, damages,
penalties, claims, actions, judgments, suits, costs, expenses or disbursements
resulting from the Administrative Agent’s (or such affiliate’s) gross
negligence or willful misconduct (as determined by a court of competent
jurisdiction in a final and non-appealable decision).

 

12.07  The
Administrative Agent in its Individual Capacity.  With respect to its obligation to make Loans,
or issue or participate in Letters of Credit, under this Agreement, the
Administrative Agent shall have the rights and powers specified herein for a “Lender”
and may exercise the same rights and powers as though it were not performing
the duties specified herein; and the term “Lender,”, “Required
Lenders,” “holders of Notes” or any similar terms shall, unless the context
clearly indicates otherwise, include the Administrative Agent in its respective
individual capacities.  The
Administrative Agent and its affiliates may accept deposits from, lend money
to, and generally engage in any kind of banking, investment banking, trust or
other business with, or provide debt financing, equity capital or other
services (including financial advisory services) to any Credit Party or any
Affiliate of any Credit Party (or any Person engaged in a similar business with
any Credit Party or any Affiliate thereof) as if they were not performing the
duties specified herein, and may accept fees and other consideration from any
Credit Party or any Affiliate of any Credit Party for services in connection
with this Agreement and otherwise without having to account for the same to the
Lenders.

 

12.08  Holders.  The Administrative Agent may deem and treat
the payee of any Note as the owner thereof for all purposes hereof unless and
until a written notice of the assignment, transfer or endorsement thereof, as
the case may be, shall have been filed with the Administrative Agent.  Any request, authority or consent of any
Person who, at the time of making such request or giving such authority or
consent, is the holder of any Note shall be conclusive and binding on any
subsequent holder, transferee, assignee or endorsee, as the case may be, of
such Note or of any Note or Notes issued in exchange therefor.

 

12.09  Resignation
by the Administrative Agent.  (a) The
Administrative Agent may resign from the performance of all its respective
functions and duties hereunder and/or under the other Credit Documents at any
time by giving 15 Business Days’ prior written notice to the Lenders and,
unless a Default or an Event of Default under Section 10.05 then
exists, the Borrower.  Any such
resignation by an Administrative Agent hereunder shall also constitute its
resignation as an Issuing Lender and the Swingline Lender, in which case the
resigning Administrative Agent (x) shall not be required to issue any
further Letters of Credit or make any

 

94

 

additional Swingline
Loans hereunder and (y) shall maintain all of its rights as Issuing Lender
or Swingline Lender, as the case may be, with respect to any Letters of Credit
issued by it, or Swingline Loans made by it, prior to the date of such
resignation.  Such resignation shall take
effect upon the appointment of a successor Administrative Agent pursuant to
clauses (b) and (c) below or as otherwise provided below.

 

(b)                                 Upon
any such notice of resignation by the Administrative Agent, the Required
Lenders shall appoint a successor Administrative Agent hereunder or thereunder
who shall be a commercial bank or trust company reasonably acceptable to the
Borrower, which acceptance shall not be unreasonably withheld or delayed (provided
that the Borrower’s approval shall not be required if an Event of Default then
exists).

 

(c)                                  If
a successor Administrative Agent shall not have been so appointed within such
15 Business Day period, the Administrative Agent, with the consent of the
Borrower (which consent shall not be unreasonably withheld or delayed, provided
that the Borrower’s consent shall not be required if an Event of Default then
exists), shall then appoint a successor Administrative Agent who shall serve as
Administrative Agent hereunder or thereunder until such time, if any, as the
Required Lenders appoint a successor Administrative Agent as provided above.

 

(d)                                 If
no successor Administrative Agent has been appointed pursuant to clause (b) or
(c) above by the 20th Business Day after the date such notice of
resignation was given by the Administrative Agent, the Administrative Agent’s
resignation shall become effective and the Required Lenders shall thereafter
perform all the duties of the Administrative Agent hereunder and/or under any
other Credit Document until such time, if any, as the Required Lenders appoint
a successor Administrative Agent as provided above.

 

(e)                                  Upon
a resignation of the Administrative Agent pursuant to this Section 12.09,
the Administrative Agent shall remain indemnified to the extent provided in
this Agreement and the other Credit Documents and the provisions of this Section 12
shall continue in effect for the benefit of the Administrative Agent for all of
its actions and inactions while serving as the Administrative Agent.

 

SECTION 13.                          Miscellaneous.

 

13.01  Payment
of Expenses,  etc.  The Borrower hereby agrees to:  (i) whether or not the transactions
herein contemplated are consummated, pay all reasonable out-of-pocket costs and
expenses of the Agents and their respective affiliates (including, without
limitation, the reasonable fees and disbursements of White & Case LLP
and the Agents’ other counsel and consultants) in connection with the
preparation, execution, delivery and administration of this Agreement and the
other Credit Documents and the documents and instruments referred to herein and
therein and any amendment, waiver or consent relating hereto or thereto, of the
Agents in connection with their syndication efforts with respect to this
Agreement and of the Agents and, after the occurrence of an Event of Default,
each of the Issuing Lenders and Lenders in connection with the enforcement of
this Agreement and the other Credit Documents and the documents and instruments
referred to herein and therein or in connection with any refinancing or
restructuring of the credit arrangements provided under this Agreement in the
nature of a

 

95

 

“work-out” or pursuant to
any insolvency or bankruptcy proceedings (including, in each case without
limitation, the reasonable fees and disbursements of counsel and consultants
for the Agents and, after the occurrence of an Event of Default, counsel for
each of the Issuing Lenders and Lenders); (ii) pay and hold the
Administrative Agent, each of the Issuing Lenders and each of the Lenders
harmless from and against any and all present and future stamp, excise and
other similar documentary taxes with respect to the foregoing matters and save
the Administrative Agent, each of the Issuing Lenders and each of the Lenders
harmless from and against any and all liabilities with respect to or resulting
from any delay or omission (other than to the extent attributable to the
Administrative Agent, such Issuing Lender or such Lender) to pay such taxes;
and (iii) indemnify the Administrative Agent, each Issuing Lender and each
Lender, and each of their respective officers, directors, employees,
representatives, agents, affiliates, trustees and investment advisors from and
hold each of them harmless against any and all liabilities, obligations
(including removal or remedial actions), losses, damages, penalties, claims,
actions, judgments, suits, costs, expenses and disbursements (including
reasonable attorneys’ and consultants’ fees and disbursements) incurred by,
imposed on or assessed against any of them as a result of, or arising out of,
or in any way related to, or by reason of, (a) any investigation,
litigation or other proceeding (whether or not the Administrative Agent, any
Issuing Lender or any Lender is a party thereto and whether or not such
investigation, litigation or other proceeding is brought by or on behalf of any
Credit Party) related to the entering into and/or performance of this Agreement
or any other Credit Document or the use of any Letter of Credit or the proceeds
of any Loans hereunder or the consummation of the Transaction or any other
transactions contemplated herein or in any other Credit Document or the
exercise of any of their rights or remedies provided herein or in the other
Credit Documents, or (b) the actual or alleged presence of Hazardous
Materials in the air, surface water or groundwater or on the surface or
subsurface of any Real Property at any time owned, leased or operated by the
Borrower or any of its Subsidiaries, the generation, storage, transportation,
handling or disposal of Hazardous Materials by the Borrower or any of its
Subsidiaries at any location, whether or not owned, leased or operated by the
Borrower or any of its Subsidiaries, the non-compliance by the Borrower or any
of its Subsidiaries with any Environmental Law (including applicable permits
thereunder) applicable to any Real Property, or any Environmental Claim
asserted against the Borrower, any of its Subsidiaries or any Real Property at
any time owned, leased or operated by the Borrower or any of its Subsidiaries,
including, in each case, without limitation, the reasonable fees and
disbursements of counsel and other consultants incurred in connection with any
such investigation, litigation or other proceeding (but excluding any losses,
liabilities, claims, damages or expenses to the extent incurred by reason of
the gross negligence or willful misconduct of the Person to be indemnified (as
determined by a court of competent jurisdiction in a final and non-appealable
decision)).  To the extent that the
undertaking to indemnify, pay or hold harmless the Administrative Agent, any
Issuing Lender or any Lender set forth in the preceding sentence may be
unenforceable because it is violative of any law or public policy, the Borrower
shall make the maximum contribution to the payment and satisfaction of each of
the indemnified liabilities which is permissible under applicable law.

 

13.02  Right
of Setoff.  In addition to any rights
now or hereafter granted under applicable law or otherwise, and not by way of
limitation of any such rights, upon the occurrence and during the continuance
of an Event of Default, the Administrative Agent, each Issuing Lender and each
Lender is hereby authorized at any time or from time to time, without
presentment, demand, protest or other notice of any kind to any Credit Party or
to any other

 

96

 

Person, any such notice
being hereby expressly waived, to set off and to appropriate and apply any and
all deposits (general or special) and any other Indebtedness at any time held
or owing by the Administrative Agent, such Issuing Lender or such Lender
(including, without limitation, by branches and agencies of the Administrative
Agent, such Issuing Lender or such Lender wherever located) to or for the
credit or the account of the Borrower or any of its Subsidiaries against and on
account of the Obligations and liabilities of the Credit Parties to the
Administrative Agent, such Issuing Lender or such Lender under this Agreement
or under any of the other Credit Documents, including, without limitation, all
interests in Obligations purchased by such Lender pursuant to Section 13.06(b),
and all other claims of any nature or description arising out of or connected
with this Agreement or any other Credit Document, irrespective of whether or
not the Administrative Agent, such Issuing Lender or such Lender shall have
made any demand hereunder and although said Obligations, liabilities or claims,
or any of them, shall be contingent or unmatured.

 

13.03  Notices.  Except as otherwise expressly provided
herein, all notices and other communications provided for hereunder shall be in
writing (including telegraphic, telex, telecopier or cable communication) and
mailed, telegraphed, telexed, telecopied, cabled or delivered:  if to any Credit Party, at the address
specified opposite its signature below or in the other relevant Credit
Documents; if to any Lender, at its address specified on Schedule X; and
if to the Administrative Agent, at the Notice Office; or, as to any Credit
Party or the Administrative Agent, at such other address as shall be designated
by such party in a written notice to the other parties hereto and, as to each
Lender, at such other address as shall be designated by such Lender in a
written notice to the Borrower and the Administrative Agent.  All such notices and communications shall,
when mailed, telegraphed, telexed, telecopied, or cabled or sent by overnight
courier, be effective when deposited in the mails, delivered to the telegraph
company, cable company or overnight courier, as the case may be, or sent by
telex or telecopier, except that notices and communications to the
Administrative Agent and the Borrower shall not be effective until received by
the Administrative Agent or the Borrower, as the case may be.

 

13.04  Benefit
of Agreement; Assignments; Participations. 
(a) This Agreement shall be binding upon and inure to the benefit
of and be enforceable by the respective successors and assigns of the parties
hereto; provided, however, the Borrower may not assign or transfer
any of its rights, obligations or interest hereunder without the prior written
consent of the Lenders and, provided  further, that, although any
Lender may transfer, assign or grant participations in its rights hereunder,
such Lender shall remain a “Lender” for all purposes hereunder (and may
not transfer or assign all or any portion of its Revolving Loan Commitment
hereunder except as provided in Sections 1.13 and 13.04(b)) and
the transferee, assignee or participant, as the case may be, shall not constitute
a “Lender” hereunder and, provided  further, that no Lender
shall transfer or grant any participation under which the participant shall
have rights to approve any amendment to or waiver of this Agreement or any
other Credit Document except to the extent such amendment or waiver would (i) extend
the final scheduled maturity of any Loan, Note or Letter of Credit (unless such
Letter of Credit is not extended beyond the one year anniversary of the
Revolving Loan Maturity Date) in which such participant is participating, or
reduce the rate or extend the time of payment of interest or Fees thereon
(except in connection with a waiver of applicability of any post-default
increase in interest rates) or reduce the principal amount thereof (it being
understood that any amendment or modification to the financial definitions in
this Agreement or to Section 13.07(a) shall not constitute a
reduction in the rate of interest or Fees

 

97

 

payable hereunder), or
increase the amount of the participant’s participation over the amount thereof
then in effect (it being understood that a waiver of any Default or Event of
Default or of a mandatory reduction in the Total Revolving Loan Commitment
shall not constitute a change in the terms of such participation, and that an
increase in the Revolving Loan Commitment (or the available portion thereof) or
Loan shall be permitted without the consent of any participant if the
participant’s participation is not increased as a result thereof), (ii) consent
to the assignment or transfer by the Borrower of any of its rights and
obligations under this Agreement or (iii) release all or substantially all
of the Collateral under all of the Security Documents (except as expressly
provided in the Credit Documents) supporting the Loans or Letters of Credit
hereunder in which such participant is participating.  In the case of any such participation, the
participant shall not have any rights under this Agreement or any of the other
Credit Documents (the participant’s rights against such Lender in respect of
such participation to be those set forth in the agreement executed by such
Lender in favor of the participant relating thereto) and all amounts payable by
the Borrower hereunder shall be determined as if such Lender had not sold such
participation.

 

(b)                                 Notwithstanding
the foregoing, any Lender (or any Lender together with one or more other
Lenders) may (x) assign all or a portion of its Revolving Loan Commitment
and related outstanding Obligations (or, if the Total Revolving Loan Commitment
has terminated, outstanding Obligations) hereunder to (i)(A) its parent
company and/or any affiliate of such Lender which is at least 50% owned by such
Lender or its parent company or (B) to one or more other Lenders or any
affiliate of any such other Lender which is at least 50% owned by such other
Lender or its parent company (provided that any fund that invests in
loans and is managed or advised by the same investment advisor of another fund
which is a Lender (or by an Affiliate of such investment advisor) shall be
treated as an affiliate of such other Lender for the purposes of this
sub-clause (x)(i)(B)), or (ii) in the case of any Lender that is a fund
that invests in loans, any other fund that invests in loans and is managed or
advised by the same investment advisor of any Lender or by an Affiliate of such
investment advisor or (y) assign all, or if less than all, a portion equal
to at least $1,000,000 in the aggregate for the assigning Lender or assigning
Lenders of such Revolving Loan Commitments and related outstanding Obligations
(or, if the Total Revolving Loan Commitment has terminated, outstanding
Obligations) hereunder to one or more Eligible Transferees (treating any fund
that invests in loans and any other fund that invests in loans and is managed
or advised by the same investment advisor of such fund or by an Affiliate of
such investment advisor as a single Eligible Transferee), each of which
assignees shall become a party to this Agreement as a Lender by execution of an
Assignment and Assumption Agreement, provided that (i) at such
time, Schedule I shall be deemed modified to reflect the Revolving Loan
Commitments and/or outstanding Revolving Loans, as the case may be, of such new
Lender and of the existing Lenders, (ii) upon the surrender of the
relevant Revolving Note by the assigning Lender (or, upon such assigning Lender’s
indemnifying the Borrower for any lost Revolving Note pursuant to a customary
indemnification agreement) new Revolving Notes will be issued, at the Borrower’s
expense, to such new Lender and to the assigning Lender upon the request of
such new Lender or assigning Lender, such new Revolving Notes to be in
conformity with the requirements of Section 1.05 (with appropriate
modifications) to the extent needed to reflect the revised Revolving Loan
Commitments and/or outstanding Revolving Loans, as the case may be, (iii) the
consent of the Administrative Agent and, so long as no Specified Default or
Event of Default then exists, the consent of the Borrower in each case shall be
required in connection with any such assignment pursuant to clause (y) above
(each of which consents shall not be unreasonably withheld or

 

98

 

delayed), (iv) the Administrative
Agent shall receive at the time of each such assignment, from the assigning or
assignee Lender, the payment of a non-refundable assignment fee of $3,500 and (v) no
such transfer or assignment will be effective until recorded by the
Administrative Agent on the Register pursuant to Section 13.15.  To the extent of any assignment pursuant to
this Section 13.04(b), the assigning Lender shall be relieved of
its obligations hereunder with respect to its assigned Revolving Loan
Commitment and outstanding Revolving Loans. 
At the time of each assignment pursuant to this Section 13.04(b) to
a Person which is not already a Lender hereunder, the respective assignee
Lender shall, to the extent legally entitled to do so, provide to the Borrower
the appropriate Internal Revenue Service Forms (and, if applicable, a Section 4.04(b)(ii) Certificate)
described in Section 4.04(b). 
To the extent that an assignment of all or any portion of a Lender’s
Revolving Loan Commitment and related outstanding Obligations pursuant to Section 1.13
or this Section 13.04(b) would, at the time of such
assignment, result in increased costs under Section 1.10, 2.06
or 4.04 from those being charged by the respective assigning Lender
prior to such assignment, then the Borrower shall not be obligated to pay such
increased costs (although the Borrower, in accordance with and pursuant to the
other provisions of this Agreement, shall be obligated to pay any other
increased costs of the type described above resulting from changes in any applicable
law, treaty, governmental rule, regulation, guideline or order, or in the
interpretation thereof, after the date of the respective assignment).

 

(c)       Nothing
in this Agreement shall prevent or prohibit any Lender from pledging its Loans
and Notes hereunder as security for the obligations of such Lender, including (i) to
a Federal Reserve Bank in support of borrowings made by such Lender from such
Federal Reserve Bank and (ii) with prior notification to the
Administrative Agent (but without the consent of the Administrative Agent or
the Borrower), in the case of any Lender which is a fund, to its trustee or to
a collateral agent providing credit or credit support to such Lender in support
of its obligations to such trustee, such collateral agent or a holder of such
obligations, as the case may be.  No
pledge pursuant to this clause (c) shall release the transferor Lender
from any of its obligations hereunder.

 

13.05  No Waiver; Remedies Cumulative.  No failure or delay on the part of the
Administrative Agent, the Collateral Agent, any Issuing Lender or any Lender in
exercising any right, power or privilege hereunder or under any other Credit
Document and no course of dealing between the Borrower or any other Credit
Party and the Administrative Agent, the Collateral Agent, any Issuing Lender or
any Lender shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, power or privilege hereunder or under any other Credit
Document preclude any other or further exercise thereof or the exercise of any
other right, power or privilege hereunder or thereunder.  The rights, powers and remedies herein or in
any other Credit Document expressly provided are cumulative and not exclusive
of any rights, powers or remedies which the Administrative Agent, the
Collateral Agent, any Issuing Lender or any Lender would otherwise have.  No notice to or demand on any Credit Party in
any case shall entitle any Credit Party to any other or further notice or demand
in similar or other circumstances or constitute a waiver of the rights of the
Administrative Agent, the Collateral Agent, any Issuing Lender or any Lender to
any other or further action in any circumstances without notice or demand.

 

13.06  Payments
Pro  Rata.  (a) Except as
otherwise provided in this Agreement, the Administrative Agent agrees that
promptly after its receipt of each payment from or on

 

99

 

behalf of the Borrower in
respect of any Obligations hereunder, the Administrative Agent shall distribute
such payment to the Lenders entitled thereto (other than any Lender that has
consented in writing to waive its pro rata share of any such
payment) pro  rata based upon their respective shares, if any, of
the Obligations with respect to which such payment was received.

 

(b)       Each of the Lenders agrees
that, if it should receive any amount hereunder (whether by voluntary payment,
by realization upon security, by the exercise of the right of setoff or banker’s
lien, by counterclaim or cross action, by the enforcement of any right under
the Credit Documents, or otherwise), which is applicable to the payment of the
principal of, or interest on, the Loans, Unpaid Drawings, Commitment Commission
or Letter of Credit Fees, of a sum which with respect to the related sum or
sums received by other Lenders is in a greater proportion than the total of
such Obligation then owed and due to such Lender bears to the total of such
Obligation then owed and due to all of the Lenders immediately prior to such
receipt, then such Lender receiving such excess payment shall purchase for cash
without recourse or warranty from the other Lenders an interest in the
Obligations of the respective Credit Party to such Lenders in such amount as
shall result in a proportional participation by all the Lenders in such amount;
provided that if all or any portion of such excess amount is thereafter
recovered from such Lenders, such purchase shall be rescinded and the purchase
price restored to the extent of such recovery, but without interest.

 

(c)        Notwithstanding anything
to the contrary contained herein, the provisions of the preceding Sections
13.06(a) and (b) shall be subject to the express provisions of
this Agreement which require, or permit, differing payments to be made to

Non-Defaulting Lenders as opposed to Defaulting Lenders.

 

13.07  Calculations; Computations.  (a) The financial statements to be
furnished to the Lenders pursuant hereto shall be made and prepared in
accordance with generally accepted accounting principles in the United States
consistently applied throughout the periods involved (except as set forth in
the notes thereto or as otherwise disclosed in writing by the Borrower to the
Lenders); provided that, (i) except as otherwise specifically
provided herein, all computations and all definitions (including accounting
terms) used in determining compliance with Sections 8.15, 9.03(iii),
9.05(xiv), 9.08, 9.09 and 9.10(i)(B) shall
utilize generally accepted accounting principles and policies in conformity
with those used to prepare the audited historical financial statements of the
Borrower referred to in Section 7.05(a) and (ii) to
the extent expressly provided herein, certain calculations shall be made on a Pro Forma Basis.

 

(b)        All computations of
interest, Commitment Commission and other Fees hereunder shall be made on the
basis of a year of 360 days (except for interest calculated by reference to the
Prime Lending Rate, which shall be based on a year of 365 or 366 days, as
applicable) for the actual number of days (including the first day but
excluding the last day) occurring in the period for which such interest,
Commitment Commission or Fees are payable.

 

13.08  GOVERNING LAW; SUBMISSION TO
JURISDICTION; VENUE; WAIVER OF JURY TRIAL. 
(a) THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS
AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL, EXCEPT AS
OTHERWISE PROVIDED IN CERTAIN OF THE MORTGAGES, BE CONSTRUED IN ACCORDANCE WITH
AND BE GOVERNED

 

100

 

BY THE LAW OF THE STATE
OF NEW YORK.  ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT MAY BE
BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE
SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN THE COUNTY OF
NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT OR ANY OTHER CREDIT
DOCUMENT, THE BORROWER HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF
ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID
COURTS.  THE BORROWER HEREBY FURTHER
IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK PERSONAL JURISDICTION
OVER THE BORROWER, AND AGREES NOT TO PLEAD OR CLAIM, IN ANY LEGAL ACTION
PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENTS BROUGHT
IN ANY OF THE AFOREMENTIONED COURTS, THAT SUCH COURTS LACK PERSONAL
JURISDICTION OVER THE BORROWER.  THE
BORROWER FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF
THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF
COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE
BORROWER AT ITS ADDRESS SET FORTH OPPOSITE ITS SIGNATURE BELOW, SUCH SERVICE TO
BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING. 
THE BORROWER HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF
PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY
ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER CREDIT DOCUMENT
THAT SERVICE OF PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE.  NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE
ADMINISTRATIVE AGENT, ANY LENDER OR THE HOLDER OF ANY NOTE TO SERVE PROCESS IN
ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE
PROCEED AGAINST THE BORROWER IN ANY OTHER JURISDICTION.

 

(b)                                 THE
BORROWER HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR
PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER
CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND
HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH
COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN
BROUGHT IN AN INCONVENIENT FORUM.

 

(c)                                  EACH
OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO
THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY.

 

(d)                                 THE
BORROWER HEREBY IRREVOCABLY ACCEPTS THE APPOINTMENT TO RECEIVE SERVICE OF
PROCESS FOR EACH SUBSIDIARY

 

101

 

GUARANTOR (IF ANY) THAT IS A
FOREIGN SUBSIDIARY OF THE BORROWER AS PROVIDED IN SECTION 16(a) OF
THE SUBSIDIARIES GUARANTY.

 

13.09  Counterparts.  This Agreement may be executed in any number
of counterparts and by the different parties hereto on separate counterparts,
each of which when so executed and delivered shall be an original, but all of
which shall together constitute one and the same instrument.  A set of counterparts executed by all the
parties hereto shall be lodged with the Borrower and the Administrative Agent.

 

13.10  Effectiveness.  This Agreement shall become effective on the
date (the “Effective Date”) on which (i) the Borrower, the
Administrative Agent and each of the Lenders shall have signed a counterpart
hereof (whether the same or different counterparts) and shall have delivered
the same to the Administrative Agent at the Notice Office or, in the case of
the Lenders, shall have given to the Administrative Agent telephonic (confirmed
in writing), written or telex notice (actually received) at such office that
the same has been signed and mailed to it and (ii) the conditions contained
in Section 5 are met to the satisfaction of the Agents and the
Required Lenders.  Unless the
Administrative Agent has received actual notice from any Lender that the
conditions described in clause (ii) of the preceding sentence have not
been met to its satisfaction, upon the satisfaction of the condition described
in clause (i) of the immediately preceding sentence and upon the
Administrative Agent’s good faith determination that the conditions described
in clause (ii) of the immediately preceding sentence have been met, then
the Effective Date shall have deemed to have occurred.  The Administrative Agent will give the
Borrower and each Lender prompt written notice of the occurrence of the
Effective Date.

 

13.11  Headings
Descriptive.  The headings of the
several sections and subsections of this Agreement are inserted for convenience
only and shall not in any way affect the meaning or construction of any
provision of this Agreement.

 

13.12  Amendment
or Waiver; etc.  (a) Neither this Agreement nor any other
Credit Document nor any terms hereof or thereof may be changed, waived,
discharged or terminated unless such change, waiver, discharge or termination
is in writing signed by the respective Credit Parties party hereto or thereto
and the Required Lenders (although additional parties may be added to (and
annexes may be modified to reflect such additions), and Subsidiaries of the
Borrower may be released from, the Subsidiaries Guaranty and the Security
Documents in accordance with the provisions hereof and thereof without the
consent of the other Credit Parties party thereto or the Required Lenders),
provided that no such change, waiver, discharge or termination shall, without
the consent of each Lender (other than a Defaulting Lender) (with Obligations being
directly affected in the case of following clause (i)), (i) extend the
final scheduled maturity of any Loan or Note or extend the stated expiration
date of any Letter of Credit beyond the one year anniversary of the Revolving
Loan Maturity Date, or reduce the rate or extend the time of payment of
interest or Fees thereon (except in connection with the waiver of applicability
of any post-default increase in interest rates), or reduce the principal amount
thereof (it being understood that any amendment or modification to the
financial definitions in this Agreement or to Section 13.07(a) shall
not constitute a reduction in the rate of interest or Fees for the purposes of
this clause (i)), (ii) release all or substantially all of the Collateral
(except as expressly provided in the Credit Documents) under all the Security
Documents, (iii) amend, modify or waive any provision of this Section 13.12(a) (except
for

 

102

 

technical amendments with
respect to additional extensions of credit pursuant to this Agreement which
afford the protections to such additional extensions of credit of the type
provided to the Revolving Loan Commitments on the Effective Date), (iv) reduce
the percentage specified in the definition of Required Lenders (it being
understood that, with the consent of the Required Lenders, additional
extensions of credit pursuant to this Agreement may be included in the
determination of the Required Lenders on substantially the same basis as the
extensions of Revolving Loan Commitments are included on the Effective Date),
or (v) consent to the assignment or transfer by the Borrower of any of its
rights and obligations under this Agreement; provided further, that no such
change, waiver, discharge or termination shall (1) increase the Revolving
Loan Commitment of any Lender over the amount thereof then in effect without
the consent of such Lender (it being understood that waivers or modifications
of conditions precedent, covenants, Defaults or Events of Default or of a
mandatory reduction in the Total Revolving Loan Commitment shall not constitute
an increase of the Revolving Loan Commitment of any Lender, and that an
increase in the available portion of the Revolving Loan Commitment of any
Lender shall not constitute an increase of the Revolving Loan Commitment of
such Lender), (2) without the consent of each Issuing Lender, amend,
modify or waive any provision of Section 2 or alter its rights or
obligations with respect to Letters of Credit, (3) without the consent of
the Swingline Lender, alter the Swingline Lender’s rights or obligations with
respect to Swingline Loans, (4) without the consent of the Administrative
Agent, amend, modify or waive any provision of Section 12 or any
other provision of this Agreement as same relates to the rights or obligations
of the Administrative Agent, or (5) without the consent of the Collateral
Agent, amend, modify or waive any provision relating to the rights or
obligations of the Collateral Agent.

 

(b)                                 If,
in connection with any proposed change, waiver, discharge or termination of any
of the provisions of this Agreement as contemplated by clauses (i) through
(v), inclusive, of the first proviso to Section 13.12(a), the
consent of the Required Lenders is obtained but the consent of one or more of
such other Lenders whose consent is required is not obtained, then the Borrower
shall have the right, so long as all non-consenting Lenders whose individual
consent is required are treated as described in either clauses (A) or (B) below,
to either (A) replace each such non-consenting Lender or Lenders with one
or more Replacement Lenders pursuant to Section 1.13 so long as at
the time of such replacement, each such Replacement Lender consents to the
proposed change, waiver, discharge or termination or (B) terminate such
non-consenting Lender’s Revolving Loan Commitment and repay all outstanding
Revolving Loans of such Lender and cash collateralize its applicable RL
Percentage of the Letter of Credit Outstandings, in accordance with Sections
3.02(b) and/or 4.01(b), provided that, unless the
Revolving Loan Commitments which are terminated and Revolving Loans which are
repaid pursuant to preceding clause (B) are immediately replaced in full
at such time through the addition of new Lenders or the increase of the
Revolving Loan Commitments of existing Lenders (who in each case must
specifically consent thereto), then in the case of any action pursuant to
preceding clause (B), the Required Lenders (determined after giving effect to
the proposed action) shall specifically consent thereto, provided  further,
that the Borrower shall not have the right to replace a Lender, terminate its
Revolving Loan Commitment or repay its Revolving Loans solely as a result of
the exercise of such Lender’s rights (and the withholding of any required
consent by such Lender) pursuant to the second proviso to Section 13.12(a).

 

103

 

13.13  Survival.  All indemnities set forth herein including,
without limitation, in Sections 1.10, 1.11, 2.06, 4.04,
12.06 and 13.01 shall survive the execution, delivery and
termination of this Agreement and the Notes and the making and repayment of the
Obligations.

 

13.14  Domicile
of Loans.  Each Lender may transfer
and carry its Loans and/or participations in outstanding Letters of Credit at,
to or for the account of any office, Subsidiary or Affiliate of such
Lender.  Notwithstanding anything to the
contrary contained herein, to the extent that a transfer of Loans and/or
participations in outstanding Letters of Credit pursuant to this Section 13.14
would, at the time of such transfer, result in increased costs under Section 1.10,
1.11, 2.06 or 4.04 from those being charged by the
respective Lender prior to such transfer, then the Borrower shall not be
obligated to pay such increased costs (although the Borrower shall be obligated
to pay any other increased costs of the type described above resulting from
changes in any applicable law, treaty, governmental rule, regulation, guideline
or order, or in the interpretation thereof, after the date of the respective
transfer).

 

13.15  Register.  The Borrower hereby designates the
Administrative Agent to serve as its agent, solely for purposes of this Section 13.15,
to maintain a register (the “Register”) on which it will record the
Revolving Loan Commitments from time to time of each of the Lenders, the Loans
made by each of the Lenders, the amount of any principal or interest due and
payable with respect to such Loans and each repayment in respect of the
principal amount, and related interest amounts of the Loans of each
Lender.  Failure to make any such
recordation, or any error in such recordation, shall not affect the Borrower’s
obligations in respect of such Loans. 
With respect to any Lender, the transfer of the Revolving Loan
Commitment of such Lender and the rights to the principal of, and interest on,
any Loan made pursuant to such Revolving Loan Commitment shall not be effective
until such transfer is recorded on the Register maintained by the
Administrative Agent with respect to ownership of such Revolving Loan
Commitment and Loans and prior to such recordation all amounts owing to the
transferor with respect to such Revolving Loan Commitment and Loans shall
remain owing to the transferor.  The
registration of assignment or transfer of all or part of the Revolving Loan
Commitment and Loans shall be recorded by the Administrative Agent on the
Register only upon the acceptance by the Administrative Agent of a properly
executed and delivered Assignment and Assumption Agreement pursuant to Section 13.04(b).  Coincident with the delivery of such an
Assignment and Assumption Agreement to the Administrative Agent for acceptance
and registration of assignment or transfer of all or part of a Loan, or as soon
thereafter as practicable, the assigning or transferor Lender shall surrender
the Revolving Note (if any) evidencing such Loan, and thereupon one or more new
Revolving Notes in the same aggregate principal amount shall be issued to the
assigning or transferor Lender and/or the new Lender at the request of any such
Lender.  The Borrower agrees to indemnify
the Administrative Agent from and against any and all losses, claims, damages
and liabilities of whatsoever nature which may be imposed on, asserted against
or incurred by the Administrative Agent in performing its duties under this Section 13.15
except to the extent resulting from the Administrative Agent’s gross negligence
or willful misconduct (as determined by a court of competent jurisdiction in a
final and non-appealable decision).  In
addition, the Borrower shall have the right, upon its written request to the
Administrative Agent, to review a copy of the Register at any reasonable time.

 

13.16  Confidentiality.  (a) Subject to the provisions of clause (b) of
this Section 13.16, each Lender agrees that it will use its
reasonable efforts not to disclose without

 

104

 

the prior consent of the
Borrower (other than to its employees, auditors, advisors or counsel or to
another Lender if such Lender or such Lender’s holding or parent company in its
reasonable discretion determines that any such party should have access to such
information, provided such Persons shall be subject to the provisions of this Section 13.16
to the same extent as such Lender) any information with respect to the Borrower
or any of its Subsidiaries which is now or in the future furnished pursuant to
this Agreement or any other Credit Document and which is designated as
confidential by the Borrower, provided that any Lender may disclose any
such information (i) as has become generally available to the public other
than by virtue of a breach of this Section 13.16(a) by the
respective Lender, (ii) as may be required or appropriate in any report,
statement or testimony submitted to any municipal, state or Federal regulatory
body having or claiming to have jurisdiction over such Lender or to the Federal
Reserve Board or the Federal Deposit Insurance Corporation or similar
organizations (whether in the United States or elsewhere) or their successors, (iii) as
may be required or appropriate in respect to any summons or subpoena or in
connection with any litigation, (iv) in order to comply with any law,
order, regulation or ruling applicable to such Lender, (v) to the
Administrative Agent or the Collateral Agent, (vi) to any direct or
indirect contractual counterparty in any swap, hedge or similar agreement (or
to any such contractual counterparty’s professional advisor), so long as such
contractual counterparty (or such professional advisor) agrees to be bound by
the provisions of this Section 13.16, and (vii) to any
prospective or actual transferee or participant in connection with any
contemplated transfer or participation of any of the Notes, Loans or Revolving
Loan Commitments or any interest therein by such Lender, provided that
such prospective transferee agrees to be bound by the confidentiality
provisions contained in this Section 13.16.

 

(b)                                 The
Borrower hereby acknowledges and agrees that each Lender may share with any of
its affiliates, and such affiliates may share with such Lender, any information
related to the Borrower or any of its Subsidiaries (including, without
limitation, any non-public customer information regarding the creditworthiness
of the Borrower and its Subsidiaries), provided such Persons shall be subject
to the provisions of this Section 13.16 to the same extent as such
Lender.

 

*     *    
*

 

105

 

IN WITNESS WHEREOF, the
parties hereto have caused their duly authorized officers to execute and
deliver this Agreement as of the date first above written.

 

Address:

 

	
  55 Nod Road

  	
   

  	
  MAGELLAN HEALTH SERVICES, INC.

  
	
  Avon, Connecticut 06001

  	
   

  	
   

  
	
  Attention: President and Chief Executive Officer

  	
   

  	
  By: 

  	
  /s/ Mark S. Demilio

  
	
  Tel. No.: (410) 953-1000

  	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
  Fax No.: (410) 953-4715

  	
   

  	
   

  

 

With a copy to:

 

	
  55 Nod Road

  	
   

  	
   

  
	
  Avon, Connecticut 06001

  	
   

  	
   

  
	
  Attention: General Counsel

  	
   

  	
   

  
	
  Tel. No.: (410) 953-1000

  	
   

  	
   

  
	
  Fax No.: (410) 953-4715

  	
   

  	
   

  

 

 

	
   

  	
  DEUTSCHE
  BANK AG, Individually and as

  Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Anthony
  Calabrese

  
	
   

  	
  Title: Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Katrina
  Krallitsch

  
	
   

  	
  Title: Assistant Vice
  President

  

 

 

	
   

  	
  CITIBANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Allen Fisher

  
	
   

  	
  Title: Vice
  President

  

 

 

COMMITMENTS

 

	
  Lender

  	
   

  	
  Revolving Loan

  Commitment

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deutsche Bank AG

  	
   

  	
  $

  	
  50,000,000

  	
   

  
	
  Citibank, N.A.

  	
   

  	
  $

  	
  50,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TOTAL:

  	
   

  	
  $

  	
  100,000,000

  	
   

  

 

 

LENDER ADDRESSES

 

	
  Lender

  	
   

  	
  Address

  
	
   

  	
   

  	
   

  
	
  Deutsche Bank AG

  	
   

  	
  Deutsche Bank AG

  
	
   

  	
   

  	
  60 Wall Street

  
	
   

  	
   

  	
  New York, New York 10005

  
	
   

  	
   

  	
  Attention: Carin Keegan

  
	
   

  	
   

  	
  Telephone No.: (212) 250-6083

  
	
   

  	
   

  	
  Telecopier No.: (212) 797-5690

  
	
   

  	
   

  	
   

  
	
  Citibank, N.A.

  	
   

  	
  Citibank, N.A.

  
	
   

  	
   

  	
  388 Greenwich Street

  
	
   

  	
   

  	
  New York, New York 10013

  
	
   

  	
   

  	
  Attention: Allen Fisher

  
	
   

  	
   

  	
  Telephone No.: (212) 816-5254

  
	
   

  	
   

  	
  Telecopier No.: (646) 291-1623

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