Document:

EXHIBIT 10.5

 

SECOND AMENDED AND RESTATED RETENTION AGREEMENT

 

THIS SECOND AMENDED AND RESTATED RETENTION AGREEMENT
(the “Agreement”), is made on this 19th day of July, 2005
(the “Effective Date”), by and between GARDENBURGER, INC., an Oregon
Corporation (the “Company”) and Lori Abert Luke (the “Executive”).

 

WHEREAS, the Executive serves as a valued employee of
the Company and along with other key members of management of the Company
(collectively, the “Executives”) provides essential services to the Company;
and

 

WHEREAS, the Company and
the Executive have entered into that certain Employment Agreement dated February 26,
2004, and an Amendment to Employment Agreement dated March 24, 2005,
pursuant to which the Executive serves as the Vice President, Marketing and
R&D of the Company (collectively, the “Employment Agreement”); and

 

WHEREAS, in addition to the benefits that the
Executive may be entitled to receive under the Employment Agreement, the
Company and the Executive are parties to an Amended and Restated Retention
Agreement, dated May 4, 2005 (which amended and restated a prior Retention
Agreement, dated January 27, 2005, and an Amendment to Retention
Agreement, dated March 24, 2005), pursuant to which the Company has
endeavored to establish an incentive for the Executive to continue to be
employed by the Company through and following the execution of a definitive
agreement relating to a Change in Control (as defined in Section 2.4) or a
Going Private Transaction (as defined in Section 2.7); and

 

WHEREAS, the Amended and Restated Retention Agreement
did not contemplate the possibility of a Change in Control occurring through
means other than the execution of a definitive agreement, and the Company and
the Executive wish to provide for such possibility; and

 

WHEREAS, the Executive has previously informed (and
now reaffirms) the Company that the Executive will be unable to devote
Executive’s complete unimpaired attention to continue providing services to the
Company to assist the Company in negotiating a transaction which contemplates a
Change in Control or Going Private Transaction and will be forced to consider
other employment opportunities, due to the personal financial risks that such a
Change in Control or Going Private Transaction imposes on the Executive, unless
the Company agrees to modify the terms of the Amended and Restated Retention
Agreement; and

 

WHEREAS, the Company is aware that the Executives are
being recruited by other potential employers and that certain of the Executives
have already received offers regarding alternative employment opportunities;
and

 

WHEREAS, the Company has determined that Executive’s
continued services with the Company are important to the Company’s efforts to
maximize value pursuant to a

 

 

Change in Control or Going Private Transaction and that the Company
would suffer adverse consequences if Executive’s employment with the Company
terminated.

 

NOW, THEREFORE, in consideration of the foregoing and
the mutual covenants and promises contained herein, and intending to be legally
bound hereby, the parties agree as follows:

 

1.             Retention Bonus.

 

1.1. Bonus Amount and Conditions. Subject to
Sections 1.2, 3, 4 and 5.1, the Company shall pay to the Executive the
Retention Bonus (as defined in Section 2.9) to the Executive if: promptly,
upon request of the Company, the Executive executes and delivers a release of
claims against the Company, which release shall be in the same form as
Paragraph 9 to the Separation Agreement attached to the Employment Agreement
between the Executive and the Company; and the earlier to occur of:

 

(a)           the
Executive has remained continuously employed by the Company through the earlier
of:  (i) the date of a full and
complete execution of a Sale Transaction; (ii) the date a Change in
Control occurs; or (iii) January 27, 2007; or

 

(b)           the
Executive’s employment by the Company is terminated by the Company without
Cause (as defined in Section 2.3) other than in connection with Executive’s death or Disability (as defined in Section 2.6).

 

1.2. Timing and Form of Payment.

 

(a)           If payment
to the Executive is due as a result of Section 1.1(a)(i), the Company
shall pay to the Executive:

 

(i)            seventy-five
percent (75%) of the Retention Bonus in a lump sum as soon as administratively
feasible following the date of a full and complete execution of a Sale
Transaction (the “Signing”); provided, however, that Executive shall not be
entitled to the payment contemplated in this Paragraph 1.2(a)(i) unless
the Executive exercises all reasonable efforts to support a Signing which
contemplates a Sale Transaction; and

 

(ii)           the
remaining twenty-five percent (25%) of the Retention Bonus in a lump sum as
soon as administratively feasible following the earlier of:  (A) the date of the consummation of the
transactions contemplated by the Sale Transaction; or (B) January 27,
2007, provided, however, that Executive shall not be entitled to the payment
contemplated in this Paragraph 1.2(a)(ii) unless the Executive, after the
Signing, exercises all reasonable efforts to support the consummation of the
Sale Transaction and to cooperate with the Company to consummate the Sale
Transaction (including, if so requested by the Company, providing assistance to
the prospective buyer in obtaining financing for the Sale Transaction.

 

(b)           If payment
to the Executive is due as a result of Section 1.1(a)(ii), the Company
shall pay to the Executive the Retention Bonus in a lump sum as soon as
administratively feasible following the date a Change in Control occurs.

 

2

 

(c)           If payment
to the Executive is due as a result of Section 1.1(a)(iii), the Company
shall pay to the Executive the Retention Bonus in a lump sum as soon as
administratively feasible following January 27, 2007.

 

(d)           If payment
to the Executive is due as a result of Section 1.1(b), the Company shall
pay to the Executive the Retention Bonus in a lump sum as set forth in Section 2.9(c) or
Section 2.9(d), as applicable.

 

2.             Certain
Definitions. As used herein:

 

2.1. “Affiliate” means, with respect to a
Person (as defined below), another Person that directly or indirectly controls,
or is controlled by, or is under common control with such Person.

 

2.2. “Base Salary” means the annual amount
equal to Two Hundred and Six Thousand Dollars ($206,000), as adjusted by the
Board of Directors of the Company from time to time.

 

2.3. “Cause” shall have the meaning set forth
in Article I of the Employment Agreement.

 

2.4. “Change in Control” shall have the meaning
set forth in Article I of the Employment Agreement, as amended.

 

2.5. [This Section Intentionally Omitted.]

 

2.6. “Disability” shall have the meaning set
forth in Article I of the Employment Agreement.

 

2.7. “Going Private Transaction” shall have the
meaning set forth in Section (a)(3) of Rule 13e-3 promulgated
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

2.8. “Person” means any individual, entity or
group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act.

 

2.9. “Retention Bonus” means the amount equal
to:

 

(a)           if the
Executive has remained continuously employed by the Company through the earlier
of:  (i) the date of the Signing and
the Signing occurs on or before July 27, 2006, or (ii) the date a
Change in Control occurs and such date is on or before July 27, 2006, an
amount equal to twelve (12) months of Base Salary in effect at the time of the
payment pursuant to Section 1.2; or

 

(b)           if the
Executive has remained continuously employed by the Company through the earlier
of:  (i) the date of the Signing,
which Signing occurs after July 27, 2006; (ii) the date a Change in
Control occurs and such date is after July 27, 2006; or

 

3

 

(iii) January 27, 2007, an amount equal to sixteen (16) months of
Base Salary in effect at the time of the payment pursuant to Section 1.2;
or

 

(c)           if payment
to the Executive is due as a result of Section 1.1(b) and the
Executive’s termination of employment occurs on or before July 27, 2006,
the product of:  (i) the amount equal
to twelve (12) months of Base Salary in effect at the time of the Executive’s
termination of employment; multiplied by (ii) the quotient of:  (A) the number of days commencing on January 27,
2005 and ending on the date of the Executive’s termination of employment;
divided by (B) one of the following: 
(1) in the event of a Signing, the number of days commencing on January 27,
2005 and ending on the date of the Signing; or (2) in the event of a
Change in Control (which is not the result of a Signing), the number of days
commencing on January 27, 2005, and ending on the date of the Change in
Control; or (3) in the event neither a Signing nor a Change in Control
occurs prior to January 27, 2007, then 730; or

 

(d)           if payment
to the Executive is due as a result of Section 1.1(b) and the
Executive’s termination of employment occurs at anytime after July 27,
2006, the product of:  (i) the
amount equal to sixteen (16) months of Base Salary in effect at the time of the
Executive’s termination of employment; multiplied by (ii) the quotient
of:  (A) the number of days
commencing on January 27, 2005 and ending on the date of the Executive’s
termination of employment; divided by (B) one of the following:  (1) in the event of a Signing, the
number of days commencing on January 27, 2005, and ending on the date of
the Signing; or (2) in the event of a Change in Control (which is not the
result of a Signing), the number of days commencing on January 27, 2005,
and ending on the date of the Change in Control; or (3) in the event
neither a Signing nor a Change in Control occurs prior to January 27,
2007, then 730.

 

2.10. “Sale Transaction” shall have the meaning
set forth in Article I of the Employment Agreement, as amended.

 

2.11. “Signing” shall have the meaning assigned
to it in Section 1.2(a)(i) of this Agreement.

 

3.             Parachute Payments.
Payments under this Agreement shall be made without regard to whether the
deductibility of such payments (or any other payments) would be limited or
precluded by Section 280G of the Internal Revenue Code of 1986 (the “Code”)
and without regard to whether such payments would subject the Executive to the
federal excise tax levied on certain “excess parachute payments” under Section 4999
of the Code; provided, however, that if the Total After-Tax Payments (as
defined below) would be increased by the limitation or elimination of any
amount payable under this Agreement, then amounts payable under this Agreement
will be reduced to the extent necessary to maximize the Total After-Tax
Payments. The determination of whether and to what extent payments under this
Agreement are required to be reduced in accordance with the preceding sentence
will be made at the Company’s expense by an independent, certified public
accountant selected by the Executive and reasonably acceptable to the Company. In
the event of any underpayment or overpayment under this Agreement (as
determined after the application of this Section 3), the amount of such
underpayment or overpayment will be immediately paid by the Company to the
Executive or refunded by the Executive to the Company, as the case may be, with
interest at the applicable federal rate provided for in Section 7872(f)(2) of
the Code. For purposes of this Agreement, “Total After-Tax

 

4

 

Payments” means the total of all “parachute payments” (as that term is
defined in Section 280G(b)(2) of the Code) made to or for the benefit
of the Executive (whether made hereunder or otherwise), after reduction for all
applicable federal taxes (including, without limitation, the tax described in Section 4999
of the Code).

 

4.             Certain
Limitations.

 

4.1. Cash Flow Limitation. Notwithstanding any
other provision of this Agreement to the contrary, the aggregate amount of any
payments due under this Agreement or any similar retention agreements executed
now or in the future with any other employee of the Company or any of its
Affiliates (each a, “Key Employee”) to the Executive and one or more Key
Employees in a single fiscal year shall be limited so that in no event shall
the aggregate amount to be paid in cash cause the Company’s Available Credit
plus Cash to fall below $1,500,000 (“Cash Flow Ceiling”); and in the event the
Available Credit plus Cash would fall below such amount, the Company shall
deliver to the Executive to the extent required by this Agreement a payment in
an amount equal to the product of (i) the Cash Flow Ceiling multiplied by (ii) a
fraction, the numerator of which is the aggregate amount of such Executive’s
full payment hereunder for the fiscal year and the denominator of which is the
aggregate amount of all payments due to the Executive and all other Key
Employees in such fiscal year (“Cash Flow Permitted Amount”). To the extent
that payments under this Agreement to the Executive in a single fiscal year
would exceed the Cash Flow Ceiling (“Cash Flow Shortfall”), the Company shall
pay the Cash Flow Permitted Amount to the Executive and shall pay the Cash Flow
Shortfall (in whole or in part) as rapidly as permitted by the terms of this Section 4.1.
The obligation to pay the Cash Flow Shortfall shall constitute subordinated
debt of the Company until paid. The Company may, in the sole discretion of the
Board, elect to waive the annual cash flow limitation set forth above, and absent
such a waiver, the limitation shall apply to payments due under this Agreement.
For purposes of this Section 4.1, “Available Credit plus Cash” means
credit available to the Company as calculated by the Chief Financial Officer or
an acceptable designee using the borrowing worksheet supplied by the Company’s
Senior Lender plus the total amount of cash in the Company’s bank account(s).

 

4.2. Debt Limitations. Notwithstanding any
other provision of this Agreement to the contrary, if a payment of any amount to
the Executive under this Agreement would, if made, be prohibited pursuant to
any agreement to which the Company (as defined below) is or from time to time
becomes a party, evidencing or governing indebtedness for borrowed money (each,
a “Debt Agreement”), the Company shall identify to the Executive the part, if
any, of the amount that the Company is permitted to pay in cash under the Debt
Agreement (the “Permitted Cash Amount”). If any amount is payable under this
Agreement in excess of the Permitted Cash Amount (the “Debt Covenant Shortfall”)
on the applicable payment date, the Company shall pay the Permitted Cash Amount
and shall pay the Debt Covenant Shortfall (in whole or in part) as rapidly as
permitted by and in accordance with the terms of the Debt Agreement. The
obligation to pay the Debt Covenant Shortfall shall constitute subordinated
debt of the Company until paid. The Company shall use commercially reasonable
efforts to obtain a waiver of any such prohibition as may be contained in any
applicable Debt Agreement, but the Company shall not be obligated to post
additional collateral or to accelerate or increase its debt payments to obtain
such waiver.

 

5

 

4.3. Notwithstanding anything to the contrary in this
Agreement, the limitations contained in Sections 4.1 and 4.2 of this Agreement
on the payment of monies to which the Executive is entitled to receive under
this Agreement shall not apply if the triggering event that entitles the
Executive to receive monies under this Agreement is a Signing which
contemplates a Sale Transaction or a consummation of a Sale Transaction.

 

5.             Miscellaneous.

 

5.1. No Liability of Officers and Directors for
Severance Upon Insolvency. Notwithstanding any other provision of this
Agreement and intending to be bound by this provision, the Executive hereby (a) waives
any right to claim payment of amounts owed to him, now or in the future,
pursuant to this Agreement from directors or officers of the Company if the
Company becomes insolvent and/or files a petition for relief under the United
States Bankruptcy Code in any state or Federal court (as determined in good
faith by the Board), and (b) fully and forever releases and discharges the
Company’s officers and directors from any and all claims, demands, liens,
actions, suits, causes of action or judgments arising out of any present or
future claim for such amounts.

 

5.2. Waiver of Civil Code Section 1542. The
Company and the Executive each understand and agree that the releases provided
herein extend to all claims of every nature and kind, whether known or unknown,
suspected or unsuspected. It is expressly understood and agreed that the
parties hereby waive the provisions of Section 1542 of the California
Civil Code (and any statute or law of similar construction in any other
jurisdiction), which provides as follows:

 

A general release does not extend to claims which the
creditor does not know or suspect to exist in his favor at the time of
executing the release, which if known by him must have materially affected his
settlement with the debtor.

 

5.3. Successors and Assigns. The Company may
assign this Agreement to any successor to all or substantially all of its
assets and business by means of liquidation, dissolution, merger, consolidation,
transfer of assets, or otherwise. The rights of the Executive hereunder are
personal to the Executive and may not be assigned by him.

 

5.4. Governing Law. This Agreement shall be
governed by and construed in accordance with the laws of the State of
California without regard to the principles of conflicts of laws.

 

5.5. Enforcement. Any legal proceeding arising
out of or relating to this Agreement will be instituted in the United States
District Court, Central District of California, Santa Ana Division, or if that
court does not have or will not accept jurisdiction, in any court of general
jurisdiction in the State of California, County of Orange, and the Executive
and the Company hereby consent to the personal and exclusive jurisdiction of
such court(s) and hereby waive any objection(s) that they may have to personal
jurisdiction, the laying of venue of any such proceeding and any claim or
defense of inconvenient forum.

 

6

 

5.6. Waivers; Separability. The waiver by
either party hereto of any right hereunder or any failure to perform or breach
by the other party hereto will not be deemed a waiver of any other right
hereunder or any other failure or breach by the other party hereto, whether of
the same or a similar nature or otherwise. No waiver will be deemed to have
occurred unless set forth in a writing executed by or on behalf of the waiving
party. No such written waiver will be deemed a continuing waiver unless
specifically stated therein, and each such waiver will operate only as to the
specific term or condition waived. If any provision of this Agreement is
declared to be invalid or unenforceable, in whole or in part, such invalidity
or unenforceability shall not affect the remaining provisions hereof which
shall remain in full force and effect.

 

5.7. Notices. All notices and communications
that are required or permitted to be given hereunder must be in writing and
will be deemed to have been duly given when delivered personally or upon
mailing by registered or certified mail, postage prepaid, return receipt
requested, as follows:

 

If to
the Company, to:

 

Gardenburger, Inc.

15615 Alton Parkway, Suite 350

Irvine, California 92618

Attention:  Robert Trebing

 

With a
copy to:

 

Pepper
Hamilton LLP

5 Park Plaza, Suite 1700

Irvine, California 92614

Attention:  Michael A. Rule, Esquire

 

If to
Executive, to:

 

Ms. Lori
Abert Luke

1111 Duffer Lane

North Salt Lake City, UT 84054

 

or to such other address as may be specified in a
notice given by one party to the other party hereunder.

 

5.8. Entire Agreement; Amendments. This
Agreement contains the entire agreement and understanding of the parties
relating to the provision of a retention bonus and merges and supersedes all
prior and contemporaneous discussions, agreements and understandings of every
nature relating to that subject. This Agreement may not be changed or modified,
except by an Agreement in writing signed by each of the parties hereto.

 

7

 

5.9. Withholding. The Company will withhold
from any payments due to Executive hereunder, all taxes, FICA or other amounts
required to be withheld pursuant to any applicable law.

 

5.10. Headings Descriptive. The headings of
sections and paragraphs 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.

 

5.11. Counterparts. This Agreement may be
executed in multiple counterparts, each of which will be deemed to be an
original, but all of which together will constitute but one and the same
instrument.

 

[Signature page follows]

 

8

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement on the date and year first above written.

 

	
   

  	
  GARDENBURGER,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott C.
  Wallace

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Chief Executive
  Officer, President

  and Chairman of the Board

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Lori Abert Luke

  	
   

  
	
   

  	
  Lori Abert Luke

  
					

 

9EXHIBIT 10.1

 

Execution Copy

 

 

REVOLVING CREDIT AGREEMENT

 

dated as of July 18, 2005

 

among

 

AAI CORPORATION

as Borrower,

 

UNITED INDUSTRIAL CORPORATION

as Parent,

 

 

THE LENDERS FROM TIME TO TIME
PARTY HERETO,

 

KEYBANK NATIONAL ASSOCIATION and

PNC BANK, NATIONAL ASSOCATION,

as Co-Documentation Agents,

 

CITIBANK, F.S.B.,

As Syndication Agent

 

and

 

SUNTRUST BANK

as Administrative Agent

 

 

SUNTRUST CAPITAL MARKETS, INC.,

as Arranger and Book Manager

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  	
   

  	
  DEFINITIONS; CONSTRUCTION

  	
   

  
	
  Section 1.1.

  	
   

  	
  Definitions

  	
   

  
	
  Section 1.2.

  	
   

  	
  Classifications
  of Loans and Borrowings

  	
   

  
	
  Section 1.3.

  	
   

  	
  Accounting
  Terms and Determination

  	
   

  
	
  Section 1.4.

  	
   

  	
  Terms
  Generally

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
  AMOUNT AND TERMS OF THE
  COMMITMENTS

  	
   

  
	
  Section 2.1.

  	
   

  	
  General
  Description of Facilities

  	
   

  
	
  Section 2.2.

  	
   

  	
  Revolving
  Loans

  	
   

  
	
  Section 2.3.

  	
   

  	
  Procedure
  for Revolving Borrowings

  	
   

  
	
  Section 2.4.

  	
   

  	
  Swingline
  Commitment

  	
   

  
	
  Section 2.5.

  	
   

  	
  Funding of
  Borrowings

  	
   

  
	
  Section 2.6.

  	
   

  	
  Interest
  Elections

  	
   

  
	
  Section 2.7.

  	
   

  	
  Optional
  Reduction and Termination of Commitments

  	
   

  
	
  Section 2.8.

  	
   

  	
  Repayment
  of Loans

  	
   

  
	
  Section 2.9.

  	
   

  	
  Evidence of
  Indebtedness

  	
   

  
	
  Section 2.10.

  	
   

  	
  Optional Prepayments

  	
   

  
	
  Section 2.11.

  	
   

  	
  Mandatory Prepayments

  	
   

  
	
  Section 2.12.

  	
   

  	
  Interest on Loans

  	
   

  
	
  Section 2.13.

  	
   

  	
  Fees

  	
   

  
	
  Section 2.14.

  	
   

  	
  Computation of Interest and Fees

  	
   

  
	
  Section 2.15.

  	
   

  	
  Inability to Determine Interest Rates

  	
   

  
	
  Section 2.16.

  	
   

  	
  Illegality

  	
   

  
	
  Section 2.17.

  	
   

  	
  Increased Costs

  	
   

  
	
  Section 2.18.

  	
   

  	
  Funding Indemnity

  	
   

  
	
  Section 2.19.

  	
   

  	
  Taxes

  	
   

  
	
  Section 2.20.

  	
   

  	
  Payments Generally; Pro Rata Treatment;
  Sharing of Set-offs

  	
   

  
	
  Section 2.21.

  	
   

  	
  Letters of Credit

  	
   

  
	
  Section 2.22.

  	
   

  	
  Increase of Commitments; Additional
  Lenders

  	
   

  
	
  Section 2.23.

  	
   

  	
  Extension of Revolving Commitment
  Termination Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
  CONDITIONS PRECEDENT TO LOANS AND
  LETTERS OF CREDIT

  	
   

  
	
  Section 3.1.

  	
   

  	
  Conditions To Effectiveness

  	
   

  
	
  Section 3.2.

  	
   

  	
  Each Credit Event

  	
   

  
	
  Section 3.3.

  	
   

  	
  Delivery of Documents

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
  Section 4.1.

  	
   

  	
  Existence; Power

  	
   

  
	
  Section 4.2.

  	
   

  	
  Organizational Power; Authorization

  	
   

  
	
  Section 4.3.

  	
   

  	
  Governmental Approvals; No Conflicts

  	
   

  
	
  Section 4.4.

  	
   

  	
  Financial Statements

  	
   

  
	
  Section 4.5.

  	
   

  	
  Litigation and Environmental Matters

  	
   

  
						

 

 

	
  Section 4.6.

  	
   

  	
  Compliance with Laws and Agreements

  	
   

  
	
  Section 4.7.

  	
   

  	
  Investment Company Act, Etc.

  	
   

  
	
  Section 4.8.

  	
   

  	
  Taxes

  	
   

  
	
  Section 4.9.

  	
   

  	
  Margin Regulations

  	
   

  
	
  Section 4.10.

  	
   

  	
  ERISA

  	
   

  
	
  Section 4.11.

  	
   

  	
  Ownership of Property

  	
   

  
	
  Section 4.12.

  	
   

  	
  Disclosure

  	
   

  
	
  Section 4.13.

  	
   

  	
  Labor Relations

  	
   

  
	
  Section 4.14.

  	
   

  	
  Subsidiaries

  	
   

  
	
  Section 4.15.

  	
   

  	
  Solvency

  	
   

  
	
  Section 4.16.

  	
   

  	
  OFAC

  	
   

  
	
  Section 4.17.

  	
   

  	
  Patriot Act

  	
   

  
	
  Section 4.18.

  	
   

  	
  Security Documents

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  	
  AFFIRMATIVE COVENANTS

  	
   

  
	
  Section 5.1.

  	
   

  	
  Financial Statements and Other
  Information

  	
   

  
	
  Section 5.2.

  	
   

  	
  Notices of Material Events

  	
   

  
	
  Section 5.3.

  	
   

  	
  Existence; Conduct of Business

  	
   

  
	
  Section 5.4.

  	
   

  	
  Compliance with Laws, Etc.

  	
   

  
	
  Section 5.5.

  	
   

  	
  Payment of Obligations

  	
   

  
	
  Section 5.6.

  	
   

  	
  Books and Records

  	
   

  
	
  Section 5.7.

  	
   

  	
  Visitation, Inspection, Etc.

  	
   

  
	
  Section 5.8.

  	
   

  	
  Maintenance of Properties; Insurance

  	
   

  
	
  Section 5.8.

  	
   

  	
  Maintenance of Properties;
  Insurance TC

  	
   

  
	
  Section 5.9.

  	
   

  	
  Use of Proceeds and Letters of Credit

  	
   

  
	
  Section 5.10.

  	
   

  	
  Additional Subsidiaries

  	
   

  
	
  Section 5.11.

  	
   

  	
  Casualty and Condemnation

  	
   

  
	
  Section 5.12.

  	
   

  	
  Controlled Accounts

  	
   

  
	
  Section 5.13.

  	
   

  	
  Additional Real Estate

  	
   

  
	
  Section 5.14.

  	
   

  	
  Further Assurances

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  	
  FINANCIAL COVENANTS

  	
   

  
	
  Section 6.1.

  	
   

  	
  Borrower’s Leverage Ratio

  	
   

  
	
  Section 6.2.

  	
   

  	
  Fixed Charge Coverage Ratio

  	
   

  
	
  Section 6.3.

  	
   

  	
  Consolidated Tangible Net Worth

  	
   

  
	
  Section 6.4.

  	
   

  	
  Parent’s Leverage Ratio

  	
   

  
	
  Section 6.5.

  	
   

  	
  Parent’s Consolidated Tangible Net Worth

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  	
  NEGATIVE COVENANTS

  	
   

  
	
  Section 7.1.

  	
   

  	
  Indebtedness and Preferred Equity

  	
   

  
	
  Section 7.2.

  	
   

  	
  Negative Pledge

  	
   

  
	
  Section 7.3.

  	
   

  	
  Fundamental Changes

  	
   

  
	
  Section 7.4.

  	
   

  	
  Investments, Loans, Etc.

  	
   

  
	
  Section 7.5.

  	
   

  	
  Restricted Payments

  	
   

  
	
  Section 7.6.

  	
   

  	
  Sale of Assets

  	
   

  
	
  Section 7.7.

  	
   

  	
  Transactions with Affiliates

  	
   

  
	
  Section 7.8.

  	
   

  	
  Restrictive Agreements

  	
   

  
						

 

ii

 

	
  Section 7.9.

  	
   

  	
  Sale and Leaseback Transactions

  	
   

  
	
  Section 7.10.

  	
   

  	
  Hedging Transactions

  	
   

  
	
  Section 7.11.

  	
   

  	
  Amendment to Material Documents

  	
   

  
	
  Section 7.12.

  	
   

  	
  Indemnification Obligations

  	
   

  
	
  Section 7.13.

  	
   

  	
  Accounting Changes

  	
   

  
	
  Section 7.14.

  	
   

  	
  Capital Expenditures

  	
   

  
	
  Section 7.15.

  	
   

  	
  Detroit Stoker

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  	
  EVENTS OF DEFAULT

  	
   

  
	
  Section 8.1.

  	
   

  	
  Events of Default

  	
   

  
	
  Section 8.2.

  	
   

  	
  Application of Proceeds from Collateral

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  	
  THE ADMINISTRATIVE AGENT

  	
   

  
	
  Section 9.1.

  	
   

  	
  Appointment of Administrative Agent

  	
   

  
	
  Section 9.2.

  	
   

  	
  Nature of Duties of Administrative Agent

  	
   

  
	
  Section 9.3.

  	
   

  	
  Lack of Reliance on the Administrative
  Agent

  	
   

  
	
  Section 9.4.

  	
   

  	
  Certain Rights of the Administrative
  Agent

  	
   

  
	
  Section 9.5.

  	
   

  	
  Reliance by Administrative Agent

  	
   

  
	
  Section 9.6.

  	
   

  	
  The Administrative Agent in its
  Individual Capacity

  	
   

  
	
  Section 9.7.

  	
   

  	
  Successor Administrative Agent

  	
   

  
	
  Section 9.8.

  	
   

  	
  Authorization to Execute other Loan
  Documents

  	
   

  
	
  Section 9.9.

  	
   

  	
  Documentation Agent; Syndication Agent

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  	
  MISCELLANEOUS

  	
   

  
	
  Section 10.1.

  	
   

  	
  Notices

  	
   

  
	
  Section 10.2.

  	
   

  	
  Waiver; Amendments

  	
   

  
	
  Section 10.3.

  	
   

  	
  Expenses; Indemnification

  	
   

  
	
  Section 10.4.

  	
   

  	
  Successors and Assigns

  	
   

  
	
  Section 10.5.

  	
   

  	
  Governing Law; Jurisdiction; Consent
  to Service of Process

  	
   

  
	
  Section 10.6.

  	
   

  	
  WAIVER OF JURY TRIAL

  	
   

  
	
  Section 10.7.

  	
   

  	
  Right of Setoff

  	
   

  
	
  Section 10.8.

  	
   

  	
  Counterparts; Integration

  	
   

  
	
  Section 10.9.

  	
   

  	
  Survival

  	
   

  
	
  Section 10.10.

  	
   

  	
  Severability

  	
   

  
	
  Section 10.11.

  	
   

  	
  Confidentiality

  	
   

  
	
  Section 10.12.

  	
   

  	
  Interest Rate Limitation

  	
   

  
	
  Section 10.13.

  	
   

  	
  Waiver of Effect of Corporate Seal

  	
   

  
	
  Section 10.14.

  	
   

  	
  Patriot Act

  	
   

  
							

 

	
  Schedules

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule I

  	
   

  	
  -

  	
  Applicable
  Margin and Applicable Percentage

  	
   

  
	
  Schedule II

  	
   

  	
   

  	
  Commitment Amounts

  	
   

  
	
  Schedule 1.1A

  	
   

  	
  -

  	
  Additional
  Permitted Investments

  	
   

  
	
  Schedule 2.21

  	
   

  	
  -

  	
  Existing Letters
  of Credit

  	
   

  
	
  Schedule 4.5

  	
   

  	
  -

  	
  Environmental
  Matters

  	
   

  

 

iii

 

	
  Schedule 4.14

  	
   

  	
  -

  	
  Subsidiaries

  	
   

  
	
  Schedule 7.2

  	
   

  	
  -

  	
  Existing Liens

  	
   

  
	
  Schedule 7.4

  	
   

  	
  -

  	
  Existing
  Investments

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibits

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  -

  	
  Form of
  Revolving Credit Note

  	
   

  
	
  Exhibit B

  	
   

  	
  -

  	
  Form of
  Swingline Note

  	
   

  
	
  Exhibit C

  	
   

  	
  -

  	
  Form of
  Assignment and Acceptance

  	
   

  
	
  Exhibit D

  	
   

  	
  -

  	
  Form of
  Subsidiary Guaranty Agreement

  	
   

  
	
  Exhibit E

  	
   

  	
  -

  	
  Form of
  Parent Guaranty Agreement

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit 2.3

  	
   

  	
  -

  	
  Form of
  Notice of Revolving Borrowing

  	
   

  
	
  Exhibit 2.4

  	
   

  	
  -

  	
  Form of
  Notice of Swingline Borrowing

  	
   

  
	
  Exhibit 2.6

  	
   

  	
  -

  	
  Form of
  Notice of Continuation/Conversion

  	
   

  
	
  Exhibit 3.1(b)(xiii)

  	
   

  	
  -

  	
  Form of
  Secretary’s Certificate

  	
   

  
	
  Exhibit 3.1(b)(xvi)

  	
   

  	
  -

  	
  Form of
  Officer’s Certificate

  	
   

  
	
  Exhibit 5.1(f)

  	
   

  	
  -

  	
  Form of
  Compliance Certificate

  	
   

  

 

iv

 

REVOLVING CREDIT AGREEMENT

 

THIS
REVOLVING CREDIT AGREEMENT (this “Agreement”) is made and
entered into as of July 18, 2005, by and among AAI
CORPORATION, a Maryland corporation (the “Borrower”), UNITED INDUSTRIAL
CORPORATION, a Delaware corporation (the “Parent”), the several banks
and other financial institutions and lenders from time to time party hereto
(the “Lenders”), and SUNTRUST BANK, in its capacity as administrative
agent for the Lenders (the “Administrative Agent”), as issuing bank (the
“Issuing Bank”) and as swingline lender (the “Swingline Lender”).

 

W I T
N E S S E T H:

 

WHEREAS, the Borrower has requested that the Lenders
establish a $100,000,000 revolving
credit facility in favor of the Borrower, including a $5,000,000
swingline subfacility and a $100,000,000 letter of credit subfacility;

 

WHEREAS, subject to the terms and conditions of this
Agreement, the Lenders, the Issuing Bank and the Swingline Lender to the extent
of their respective Commitments as defined herein, are willing severally to
establish the requested revolving credit facility, letter of credit subfacility
and the swingline subfacility in favor of the Borrower.

 

NOW,
THEREFORE, in
consideration of the premises and the mutual covenants herein contained, the
Borrower, the Parent, the Lenders, the Administrative Agent, the Issuing Bank
and the Swingline Lender agree as follows:

 

ARTICLE I

 

DEFINITIONS;
CONSTRUCTION

 

Section 1.1.                                Definitions.  In
addition to the other terms defined herein, the following terms used herein
shall have the meanings herein specified (to be equally applicable to both the
singular and plural forms of the terms defined):

 

“Additional
Lender” shall have the meaning given to such term in Section 2.22.

 

“Adjusted
LIBO Rate” shall mean, with respect to each Interest Period for a Eurodollar
Borrowing, the rate per annum obtained by dividing (i) LIBOR for such
Interest Period by (ii) a percentage equal to 1.00 minus
the Eurodollar Reserve Percentage.

 

“Administrative
Questionnaire” shall mean, with respect to each Lender, an administrative
questionnaire in the form prepared by the Administrative Agent and submitted to
the Administrative Agent duly completed by such Lender.

 

“Affiliate”
shall mean, as to any Person, any other Person that directly, or indirectly
through one or more intermediaries, Controls, is Controlled by, or is under
common Control with, such Person.  For
the purposes of this definition, “Control” shall mean the power, directly or
indirectly, either to (i) vote 10% or more of the securities having
ordinary voting power for the election of directors (or persons performing
similar functions) of a Person or (ii)

 

 

direct or cause the direction of the management and policies of a
Person, whether through the ability to exercise voting power, by control or
otherwise.  The terms “Controlling”, “Controlled
by”, and “under common Control with” have the meanings correlative thereto.

 

“Aggregate
Revolving Commitment Amount” shall mean the aggregate principal amount of
the Aggregate Revolving Commitments from time to time.  On the Closing Date, the Aggregate Revolving
Commitment Amount equals $100,000,000.

 

“Aggregate
Revolving Commitments” shall mean, collectively, all Revolving Commitments
of all Lenders at any time outstanding.

 

“Aggregate
Subsidiary Threshold” shall mean an amount equal to ninety percent (90%) of
the total consolidated revenue and ninety percent (90%) of the total
consolidated assets, in each case of the Borrower and its Subsidiaries for the
most recent Fiscal Quarter as shown on the financial statements most recently
delivered or required to be delivered pursuant to Section 5.1(a), (b),
or (d) as the case may be.

 

“Applicable Lending
Office” shall mean, for each Lender and for each Type of Loan, the “Lending
Office” of such Lender (or an Affiliate of such Lender) designated for such
Type of Loan in the Administrative Questionnaire submitted by such Lender or
such other office of such Lender (or an Affiliate of such Lender) as such
Lender may from time to time specify to the Administrative Agent and the Borrower
as the office by which its Loans of such Type are to be made and maintained.

 

“Applicable
Margin” shall mean, as of any date, with respect to interest on all
Revolving Loans outstanding on any date or the letter of credit fee, as the
case may be, a percentage per annum determined by reference to the applicable
Borrower’s Leverage Ratio from time to time in effect as set forth on Schedule I;
provided, that a change in the Applicable Margin resulting from a change
in the Borrower’s Leverage Ratio shall be effective on the second Business Day
after which the Borrower delivers the financial statements required by Section 5.1(a),
(b), or (d) and the Compliance Certificate required by Section 5.1(f);
provided further, that if at any time the Borrower shall have failed to
deliver such financial statements and such Compliance Certificate when so
required, the Applicable Margin shall be at Level IV as set forth on Schedule I
until such time as such financial statements and Compliance Certificate are
delivered, at which time the Applicable Margin shall be determined as provided
above.  Notwithstanding the foregoing,
the Applicable Margin from the Closing Date until the financial statements and
Compliance Certificate for the Fiscal Quarter ending September 30, 2005
are required to be delivered shall be at Level I as set forth on Schedule I.

 

“Applicable
Percentage” shall mean, as of any date, with respect to the facility commitment fee as of any date, the percentage per annum
determined by reference to the applicable Borrowers’ Leverage Ratio in effect
on such date as set forth on Schedule I; provided, that a
change in the Applicable Percentage resulting from a change in the Borrower’s
Leverage Ratio shall be effective on the second Business Day after which the
Borrower delivers the financial statements required by Section 5.1(a),
(b), or (d) and the Compliance Certificate required by Section 5.1(f);
provided  further, that if at any time the Borrower shall have
failed to deliver such financial statements and such Compliance Certificate,
the Applicable Percentage 

 

2

 

shall be at Level IV as set forth on Schedule I until such
time as such financial statements and Compliance Certificate are delivered, at
which time the Applicable Percentage shall be determined as provided
above.  Notwithstanding the foregoing,
the Applicable Percentage for the commitment fee from the Closing Date until
the financial statements and Compliance Certificate for the Fiscal Quarter
ending September 30, 2005 are required to be delivered shall be at Level I
as set forth on Schedule I.

 

“Approved
Fund” shall mean any Person (other than a natural Person) that is (or will
be) engaged in making, purchasing, holding or otherwise investing in commercial
loans and similar extensions of credit in the ordinary course of its business
and that is administered or managed by (i) a Lender, (ii) an
Affiliate of a Lender or (iii) an entity or an Affiliate of an entity that
administers or manages a Lender.

 

“Assignment
and Acceptance” shall mean an assignment and acceptance entered into by a
Lender and an assignee (with the consent of any party whose consent is required
by Section 10.4(b)) and accepted by the Administrative Agent, in
the form of Exhibit C attached hereto or any other form approved by
the Administrative Agent.

 

“Availability
Period” shall mean the period from the Closing
Date to the Revolving Commitment Termination Date.

 

“Base
Rate” shall mean the higher of (i) the per annum rate which the
Administrative Agent publicly announces from time to time to be its prime
lending rate, as in effect from time to time, and (ii) the Federal Funds
Rate, as in effect from time to time, plus one-half
of one percent (0.50%).  The
Administrative Agent’s prime lending rate is a reference rate and does not
necessarily represent the lowest or best rate charged to customers.  The Administrative Agent may make commercial
loans or other loans at rates of interest at, above or below the Administrative
Agent’s prime lending rate.  Each change
in the Administrative Agent’s prime lending rate shall be effective from and
including the date such change is publicly announced as being effective.

 

“Borrower Pledge
Agreement” shall mean that certain Pledge
Agreement, dated as of the date hereof, executed by the Borrower and each
Subsidiary Loan Party that owns any Capital Stock of another Subsidiary, in
favor of the Administrative Agent for the benefit of the Lenders, pursuant to
which such Loan Parties shall pledge all of the Capital Stock of its Domestic
Subsidiaries and 65% of the voting Capital Stock and 100% of the non-voting
Capital Stock of its Non-U.S. Subsidiaries, as amended, restated, supplemented
or otherwise modified from time to time.

 

“Borrowing” shall mean a borrowing consisting of (i) Loans of the
same Class and Type, made, converted or continued on the same date and in
the case of Eurodollar Loans, as to which a single Interest Period is in
effect, or (ii) a Swingline Loan.

 

“Business
Day” shall mean (i) any day other than a Saturday, Sunday or other day
on which commercial banks in Atlanta, Georgia and New York are authorized or
required by law to close and (ii) if such day relates to a Borrowing of, a
payment or prepayment of principal or interest on, a conversion of or into, or
an Interest Period for, a Eurodollar Loan or a notice with 

 

3

 

respect to any of the foregoing, any day on which dealings in Dollars
are carried on in the London interbank market.

 

“Business
Sweep Account Agreement” shall mean any account agreement entered into by
and between the Borrower and the Swingline Lender from time to time authorizing
the automatic borrowing and repayment of Swingline Loans under the Swingline
Commitment into and from the bank account governed thereby, and specifically
referring to this Credit Agreement.

 

“Capital
Expenditures” shall mean for any period, without duplication, (i) the
additions to property, plant and equipment and other capital expenditures of
any Person and its Subsidiaries that are (or would be) set forth on a
consolidated statement of cash flows of such Person for such period prepared in
accordance with GAAP and (ii) Capital Lease Obligations incurred by the
Borrower and its Subsidiaries during such period.

 

“Capital
Lease Obligations” of any Person shall mean all obligations of such Person
to pay rent or other amounts under any lease (or other arrangement conveying
the right to use) of real or personal property, or a combination thereof, which
obligations are required to be classified and accounted for as capital leases
on a balance sheet of such Person under GAAP, and the amount of such
obligations shall be the capitalized amount thereof determined in accordance
with GAAP.

 

“Capital Stock”
shall mean any non-redeemable capital stock (or in the case of a partnership or
limited liability company, the partners’ or members’ equivalent equity
interest) of the Borrower or any of its Subsidiaries (to the extent issued to a
Person other than the Borrower), whether common or preferred.

 

“Capped Purchase Price
Indemnity Amount”  shall mean any indemnification or similar arrangement for
asbestos and other liabilities of Detroit Stoker granted by any Loan Party to
an unaffiliated third party in connection with the sale of assets or equity of
Detroit Stoker, to the extent the exposure of such Loan Parties with respect
thereto does not exceed the cash purchase price received by such Loan Parties
from such third party in connection with such sale.

 

“Cash Equivalents”
shall mean (i) direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United States (or by
any agency thereof to the extent such obligations are backed by the full faith
and credit of the United States), in each case maturing within one year from
the date of acquisition thereof; (ii) commercial paper having the highest rating,
at the time of acquisition thereof, of S&P or Moody’s and in either case
maturing within six months from the date of acquisition thereof; (iii) certificates
of deposit, bankers’ acceptances and time deposits maturing within 180 days of
the date of acquisition thereof issued or guaranteed by or placed with, and
money market deposit accounts issued or offered by, any domestic office of any
commercial bank organized under the laws of the United States or any state
thereof which has a combined capital and surplus and undivided profits of not
less than $500,000,000; (iv) fully collateralized repurchase agreements
with a term of not more than 45 days for securities described in clause (i) above
and entered into with a financial institution satisfying the criteria described
in clause (iii) above; and (v) mutual funds investing solely in any
one or more of the Permitted Investments described in clauses (i) through (iv) above.

 

4

 

“Change in Control”
shall mean the occurrence of one or more of the following events: (a) any
sale, lease, exchange or other transfer (in a single transaction or a series of
related transactions) of all or substantially all of the assets of the Parent
to any Person or “group” (within the meaning of the Securities Exchange Act of
1934 and the rules of the Securities and Exchange Commission thereunder in
effect on the date hereof), (b) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person or “group” (within the
meaning of the Securities Exchange Act of 1934 and the rules of the
Securities and Exchange Commission thereunder as in effect on the date hereof),
of 30% or more of the outstanding shares of the voting stock of the Parent; (c) occupation
of a majority of the seats (other than vacant seats) on the board of directors
of the Parent by Persons who were neither (i) nominated by the current board
of directors or (ii) appointed by directors so nominated; or (d) the
Parent ceases to own and control, beneficially and of record, 100% of the
issued and outstanding shares of capital stock of the Borrower.

 

“Change
in Law” shall mean (i) the adoption of any applicable law, rule or
regulation after the date of this Agreement, (ii) any change in any
applicable law, rule or regulation, or any change in the interpretation or
application thereof, by any Governmental Authority after the date of this
Agreement, or (iii) compliance by any Lender (or its Applicable Lending
Office) or the Issuing Bank (or for purposes of Section 2.19(b), by
such Lender’s or the Issuing Bank’s parent corporation, if applicable) with any
request, guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement.

 

“Class”, when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans
or Swingline Loans and when used in reference to any Commitment, refers to
whether such Commitment is a Revolving Commitment or a Swingline Commitment.

 

“Closing
Date” shall mean the date on which the conditions precedent set forth in Section 3.1
and Section 3.2 have been satisfied or waived in accordance with Section 10.2.

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended and in effect from
time to time.

 

“Collateral” shall mean all tangible
and intangible property, real and personal, of any Loan Party that is the
subject of a Lien granted pursuant to a Loan Document to the Administrative
Agent for the benefit of the Lenders to secure the whole or any part of the
Obligations or any Guarantee thereof, and shall include, without limitation, all
casualty insurance proceeds and condemnation awards with respect to any of the
foregoing.

 

“Commitment”
shall mean a Revolving Commitment or a Swingline Commitment or any combination
thereof (as the context shall permit or require).

 

“Compliance
Certificate” shall mean a certificate from the principal executive officer
and the principal financial officer of each of the Parent and the Borrower in
the form of, and containing the certifications set forth in, the certificate
attached hereto as Exhibit 5.1(f).

 

5

 

“Consolidated
Adjusted EBITDA” shall mean, for any Person and its Subsidiaries for any
period, an amount equal to the sum of (i) Consolidated Net Income for such
period plus (ii) to the extent deducted in
determining Consolidated Net Income for such period, (A) Consolidated
Interest Expense, (B) income tax expense determined on a consolidated
basis in accordance with GAAP, (C) depreciation and amortization
determined on a consolidated basis in accordance with GAAP, (D) certain
non-recurring non-cash charges approved by the Administrative Agent in writing,
and (E) adjustments for discontinued operations approved by the
Administrative Agent in writing, in each case for such period.

 

“Consolidated
Fixed Charges” shall mean, for the Borrower and its Subsidiaries for any
period, the sum (without duplication) of (i) Consolidated Interest Expense
for such period, (ii) scheduled principal payments made on Indebtedness
during such period and (iii) Restricted Payments paid during such period.

 

“Consolidated
Interest Expense” shall mean, for any Person and its Subsidiaries for any
period determined on a consolidated basis in accordance with GAAP, the sum of (i) total
interest expense, including without limitation the interest component of any
payments in respect of Capital Lease Obligations capitalized or expensed during
such period (whether or not actually paid
during such period) plus (ii) the net amount payable (or minus the net amount receivable) under Hedging Agreements
during such period (whether or not actually paid or received during such
period).

 

“Consolidated
Net Income” shall mean, for any Person and its Subsidiaries for any period,
the net income (or loss) of such Person and its Subsidiaries for such period
determined on a consolidated basis in accordance with GAAP, including
without limitation, any income (or loss) of any Person accrued prior to the
date it becomes a Subsidiary of the Parent or is merged into or consolidated
with any Subsidiary of the Parent or the date that such Person’s assets are
acquired by any Subsidiary of the Parent, but excluding therefrom (to the
extent otherwise included therein) (i) any extraordinary gains or losses, (ii) any
gains attributable to write-ups of assets and (iii) any equity interest of
such Person or its Subsidiaries in the unremitted earnings of any Person that
is not a Subsidiary or where the payment of dividends or making of other
distributions by such Person is subject to legal or contractual restrictions.

 

“Consolidated
Tangible Net Worth” shall mean, for any Person and its Subsidiaries for any
period as of any date, (i) the total assets of such Person and its
Subsidiaries that would be reflected on the such Person’s consolidated balance
sheet as of such date prepared in accordance with GAAP, after eliminating all
amounts properly attributable to minority interests, if any, in the stock and
surplus of Subsidiaries, minus (ii) the
sum of (x) the total liabilities of such Person and its Subsidiaries that would
be reflected on such Person’s consolidated balance sheet as of such date
prepared in accordance with GAAP, (y) the amount of any write-up in the book
value of any assets resulting from a revaluation thereof or any write-up in
excess of the cost of such assets acquired reflected on the consolidated
balance sheet of such Person as of such date prepared in accordance with GAAP
and (z) the net book amount of all assets of such Person and its Subsidiaries
that would be classified as intangible assets on a consolidated balance sheet
of such Person as of such date (including all debt issuance costs) prepared in
accordance with GAAP minus (iii) when
calculating Consolidated Tangible Net Worth for the Borrower and its
Subsidiaries, intercompany receivables owing to Borrower and 

 

6

 

its Subsidiaries from the Parent and other Affiliates.  For
purposes of calculating the Consolidated Tangible Net Worth of the Parent and
its Subsidiaries, Detroit Stoker and its Subsidiaries shall be excluded.

 

“Consolidated
Total Net Debt” shall mean as of any date of determination for any
Person and its Subsidiaries, (i) all Indebtedness of such Person and its
Subsidiaries measured on a consolidated basis as of such date, excluding
without duplication (x) Indebtedness of the type described in subsection (xi)
of the definition thereof and (y) when calculating Consolidated Total Net Debt
of the Borrower and its Subsidiaries, all intercompany payables owed by
Borrower to the Parent to the extent of the UIC Cash not invested in Permitted
UIC Cash Acquisitions, Permitted UIC CapEx or Permitted UIC Cash Investments, plus (ii) the aggregate amount of all indemnification
granted by the Parent with respect to asbestos liability of Detroit Stoker as
of such date less (iii) cash and Cash
Equivalents (excluding UIC Cash to the extent offsetting intercompany payables
under clause (i)(y) above) in excess of
$10,000,000.

 

“Contractual
Obligation” of any Person shall mean any provision of any security issued
by such Person or of any agreement, instrument or undertaking under which such
Person is obligated or by which it or any of the property in which it has an
interest is bound.

 

“Controlled Account”
shall mean each deposit or investment account subject to a Control Account
Agreement.

 

“Control Account Agreements”
shall mean each tri-party agreement by and among a Loan Party, the
Administrative Agent and a depository bank or securities intermediary at which
such Loan Party maintains a deposit account or investment account, granting “control”
(as defined in Article 9 of the UCC) over such deposit account and
investment account to the Administrative Agent in a manner that perfects the
Lien of the Administrative Agent, for its benefit and for the benefit of the
Lenders, under the UCC.

 

“Copyright” shall have the meaning assigned to
such term in the Security Agreement.

 

“Copyright Security Agreements” shall mean,
collectively, the Copyright Security Agreements executed by the Loan Parties
owning Copyrights or licenses of Copyrights in favor of the Administrative
Agent, on behalf of itself and Lenders, both on the Closing Date and
thereafter, as amended, restated, supplemented or otherwise modified from time
to time.

 

“Convertible Notes”
shall mean those certain 3.75% Convertible Senior Notes due 2024 issued by the
Parent pursuant to the Convertible Notes Indenture.

 

“Convertible Notes
Indenture” shall mean that certain Indenture, dated September 15,
2004, by and between the Parent and U.S. Bank National Association as trustee
for the holders of the Convertible Notes.

 

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

 

7

 

“Default
Interest” shall have the meaning set forth in Section 2.12(c).

 

“Detroit
Stoker Company” shall mean Detroit Stoker Company, a Michigan corporation.

 

“Dollar(s)”
and the sign “$” shall mean lawful money of the United States of America.

 

“Domestic
Subsidiary” shall mean a direct or indirect Subsidiary of the Borrower
organized in the United States, the District of Columbia or any territory
thereof.

 

“Environmental Indemnity”
shall mean that certain Environmental Indemnity Agreement, dated as of the date
hereof, executed by the Borrower and all Loan Parties with Real Estate required
to be pledged to the Administrative Agent pursuant to Mortgages, as amended,
restated, supplemented or otherwise modified from time to time.

 

“Environmental
Laws” shall mean all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices or binding agreements issued,
promulgated or entered into by or with any Governmental Authority, relating to
the environment, preservation or reclamation of natural resources, the
management, Release or threatened Release of any Hazardous Material or to human
health and safety matters.

 

“Environmental
Liability” shall mean any liability (including any liability for damages,
costs of environmental investigation and remediation, costs of administrative
oversight, fines, natural resource damages, penalties or indemnities), of the
Parent, the Borrower or any
Subsidiary directly or indirectly resulting from or based upon (i) any
actual or alleged violation of any Environmental Law, (ii) the generation,
use, handling, transportation, storage, treatment or disposal of any Hazardous
Materials, (iii) any actual or alleged exposure to any Hazardous
Materials, (iv) the Release or threatened Release of any Hazardous
Materials or (v) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended from
time to time, and any successor statute.

 

“ERISA
Affiliate” shall mean any trade or business (whether or not incorporated),
which, together with the Parent or the Borrower, is treated as a single employer under Section 414(b) or
(c) of the Code or, solely for the purposes of Section 302 of ERISA
and Section 412 of the Code, is treated as a single employer under Section 414
of the Code.

 

“ERISA
Event” shall mean (i) any “reportable
event”, as defined in Section 4043 of ERISA or the regulations issued
thereunder with respect to a Plan (other than an event for which the 30-day
notice period is waived); (ii) the existence with respect to any Plan of
an “accumulated funding deficiency” (as defined in Section 412 of the Code
or Section 302 of ERISA), whether or not waived; (iii) the filing
pursuant to Section 412(d) of the Code or Section 303(d) of
ERISA of an application for a waiver of the minimum funding standard with
respect to any Plan; (iv) the incurrence by the Parent, the Borrower or any of their ERISA
Affiliates of any 

 

8

 

liability under Title IV of ERISA with respect to the termination of
any Plan; (v) the receipt by the Parent, the Borrower or any ERISA Affiliate from the
PBGC or a plan administrator appointed by the PBGC of any notice relating to an
intention to terminate any Plan or Plans or to appoint a trustee to administer
any Plan; (vi) the incurrence by the Parent, the Borrower or any of their ERISA Affiliates
of any liability with respect to the withdrawal or partial withdrawal from any
Plan or Multiemployer Plan; or (vii) the receipt by the Parent, the Borrower or any ERISA Affiliate of any
notice, or the receipt by any Multiemployer Plan from the Parent, the Borrower or any ERISA Affiliate of any
notice, indicating the imposition of Withdrawal Liability or a determination
that a Multiemployer Plan is, or is expected to be, insolvent or in
reorganization, within the meaning of Title IV of ERISA.

 

“Eurodollar”
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, bears interest at a rate determined by
reference to the Adjusted LIBO Rate.

 

“Eurodollar
Reserve Percentage” shall mean the aggregate of the maximum reserve
percentages (including, without limitation, any emergency, supplemental,
special or other marginal reserves) expressed as a decimal (rounded upwards to
the next 1/100th of 1%) in effect on any day to which the
Administrative Agent is subject with respect to the Adjusted LIBO Rate pursuant
to regulations issued by the Board of Governors of the Federal Reserve System
(or any Governmental Authority succeeding to any of its principal functions)
with respect to eurocurrency funding (currently referred to as “eurocurrency
liabilities” under Regulation D).  Eurodollar
Loans shall be deemed to constitute eurocurrency funding and to be subject to
such reserve requirements without benefit of or credit for proration,
exemptions or offsets that may be available from time to time to any Lender
under Regulation D.  The Eurodollar
Reserve Percentage shall be adjusted automatically on and as of the effective
date of any change in any reserve percentage.

 

“Event
of Default” shall have the meaning provided in Article VIII.

 

“Excluded
Taxes” shall mean with respect to
the Administrative Agent, any Lender, the Issuing Bank or any other recipient
of any payment to be made by or on account of any obligation of the Borrower
hereunder, (a) income or franchise taxes imposed on (or measured by) its
net income by the United States of America, or by the jurisdiction under the
laws of which such recipient is organized or in which its principal office is
located or, in the case of any Lender, in which its applicable lending office
is located, (b) any branch profits taxes imposed by the United States of
America or any similar tax imposed by any other jurisdiction in which any
Lender is located and (c) in the case of a Foreign Lender, any withholding
tax that (i) is imposed on amounts payable to such Foreign Lender at the
time such Foreign Lender becomes a party to this Agreement, (ii) is
imposed on amounts payable to such Foreign Lender at any time that such Foreign
Lender designates a new lending office, other than taxes that have accrued
prior to the designation of such lending office that are otherwise not Excluded
Taxes, and (iii) is attributable to such Foreign Lender’s failure to
comply with Section 2.20(e).

 

“Existing
Letters of Credit” means the letters of credit issued by SunTrust Bank
prior to the Closing Date and set forth on Schedule 2.21.

 

9

 

“Federal
Funds Rate” shall mean, for any day, the rate per annum (rounded upwards,
if necessary, to the next 1/100th of 1%) equal to the weighted
average of the rates on overnight Federal funds transactions with member banks
of the Federal Reserve System arranged by Federal funds brokers, as published
by the Federal Reserve Bank of New York on the next succeeding Business Day or
if such rate is not so published for any Business Day, the Federal Funds Rate
for such day shall be the average rounded upwards, if necessary, to the next
1/100th of 1% 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.

 

“Fee
Letter” shall mean that certain fee letter, dated as of April 29,
2005, executed by SunTrust Capital Markets, Inc. and SunTrust Bank and
accepted by the Parent.

 

“Fiscal
Quarter” shall mean any fiscal quarter of any Person.

 

“Fiscal
Year” shall mean any fiscal year of any Person.

 

“Fixed
Charge Coverage Ratio” shall mean, for the Borrower and its Subsidiaries as
of any date, the ratio of (a) Consolidated Adjusted EBITDA less the actual
amount paid by the Borrower and its Subsidiaries in cash on account of Capital
Expenditures and income tax expense to (b) Consolidated Fixed Charges, in
each case measured for the four consecutive Fiscal Quarters ending on or
immediately prior to such date.

 

“Foreign
Lender” shall mean any Lender that
is not a United States person under Section 7701(a)(3) of the Code.

 

“GAAP”
shall mean generally accepted accounting principles in the United States
applied on a consistent basis and subject to the terms of Section 1.3.

 

“Goose
Creek Facility” shall mean the 32 acres with a 195,000 square foot
manufacturing facility located at 5 Alliance Drive, Crowfield Plantation, Goose
Creek, Berkeley County, South Carolina owned by the Borrower.

 

“Governmental
Authority” shall mean the government of the United States of America, any
other nation or any political subdivision thereof, whether state or local, and
any agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government.

 

“Guarantee”
of or by any Person (the “guarantor”) shall mean any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic
effect of guaranteeing any Indebtedness or other obligation of any other Person
(the “primary obligor”) in any manner, whether directly or indirectly
and including any obligation, direct or indirect, of the guarantor (i) to
purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness or other obligation or to purchase (or to advance or supply
funds for the purchase of) any security for the payment thereof, (ii) to
purchase or lease property, securities or services for the purpose of assuring
the owner of such Indebtedness or other obligation of the payment thereof, (iii) to
maintain working capital, equity capital or any other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such 

 

10

 

Indebtedness or other obligation or (iv) as an account party in
respect of any letter of credit or letter of guaranty issued in support of such
Indebtedness or obligation; provided, that the term “Guarantee” shall not
include endorsements for collection or deposits in the ordinary course of
business.  The amount of any Guarantee
shall be deemed to be an amount equal to the stated or determinable amount of
the primary obligation in respect of which Guarantee is made or, if not so
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.  The term “Guarantee”
used as a verb has a corresponding meaning.

 

“Guarantors”
shall mean, collectively, the Parent, the Subsidiary Loan Parties and each
other Person who executes a Guaranty Agreement in connection herewith.

 

“Guaranty
Agreements” shall mean, collectively, the Parent Guaranty, the Subsidiary
Guaranty and any other guaranty agreement executed in connection herewith.

 

“Hazardous
Materials” shall mean all explosive or radioactive substances or wastes and
all hazardous or toxic substances, wastes or other pollutants, including
petroleum or petroleum distillates, friable asbestos or friable asbestos
containing materials, polychlorinated biphenyls, radon gas, infectious or
medical wastes and all other substances or wastes of any nature, to the extent
regulated pursuant to any Environmental Law.

 

“Hedging
Obligations” of any Person shall mean any and all obligations of such
Person, whether absolute or contingent and howsoever and whensoever created,
arising, evidenced or acquired under (i) any and all Hedging Transactions,
(ii) any and all cancellations, buy backs, reversals, terminations or
assignments of any Hedging Transactions and (iii) any and all renewals,
extensions and modifications of any Hedging Transactions and any and all
substitutions for any Hedging Transactions.

 

“Hedging
Transaction” of any Person shall mean any transaction (including an
agreement with respect thereto) now existing or hereafter entered into by such
Person that is a rate swap, basis swap, forward rate transaction, commodity
swap, interest rate option, foreign exchange transaction, cap transaction,
floor transaction, collateral transaction, forward transaction, currency swap
transaction, cross-currency rate swap transaction, currency option or any other
similar transaction (including any option with respect to any of these
transactions) or any combination thereof, whether linked to one or more
interest rates, foreign currencies, commodity prices, equity prices or other
financial measures.

 

“Indebtedness”
of any Person shall mean, without duplication (i) all obligations of such
Person for borrowed money, (ii) all obligations of such Person evidenced
by bonds, debentures, notes or other similar instruments, (iii) all
obligations of such Person in respect of the deferred purchase price of
property or services (other than trade payables incurred in the ordinary course
of business; provided, that for purposes of Section 8.1(f),
trade payables overdue by more than 120 days shall be included in this
definition except to the extent that any of such trade payables are being
disputed in good faith and by appropriate measures), (iv) all obligations
of such Person under any conditional sale or other title retention agreement(s)
relating to property acquired by such Person, (v) all Capital Lease
Obligations of such Person, (vi) all obligations, contingent or otherwise,
of such Person in respect of letters of credit, acceptances or 

 

11

 

similar extensions of credit, (vii) all Guarantees of such Person
of the type of Indebtedness described in clauses (i) through (vi) above,
(viii) all Indebtedness of a third party secured by any Lien on property
owned by such Person, whether or not such Indebtedness has been assumed by such
Person, (ix) all obligations of such Person, contingent or otherwise, to
purchase, redeem, retire or otherwise acquire for value any common stock of
such Person, (x) Off-Balance Sheet Liabilities and (xi) all Hedging
Obligations.  The
Indebtedness of any Person shall include the Indebtedness of any partnership or
joint venture in which such Person is a general partner or a joint venturer,
except to the extent that the terms of such Indebtedness provide that such
Person is not liable therefor.

 

“Indemnified
Taxes” shall mean Taxes other than Excluded Taxes.

 

“Information
Memorandum” shall mean the Confidential Information Memorandum dated June 2005
relating to the Borrower and the transactions contemplated by this Agreement
and the other Loan Documents.

 

“Interest Period” shall mean with respect to (i) any
Swingline Borrowing, such period as the Swingline Lender and the Borrower shall
mutually agree and (ii) any Eurodollar Borrowing, a period of one, two,
three or six months; provided, that:

 

(i)                                     the
initial Interest Period for such Borrowing shall commence on the date of such
Borrowing (including the date of any conversion from a Borrowing of another
Type), and each Interest Period occurring thereafter in respect of such
Borrowing shall commence on the day on which the next preceding Interest Period
expires;

 

(ii)                                  if any Interest Period would otherwise end on
a day other than a Business Day, such Interest Period shall be extended to the
next succeeding Business Day, unless such Business Day falls in another
calendar month, in which case such Interest Period would end on the next preceding
Business Day;

 

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

 

(iv)                              no
Interest Period may extend beyond the Revolving Commitment Termination Date

 

“Issuing
Bank” shall mean SunTrust Bank or any other Lender, each in its capacity as
an issuer of Letters of Credit pursuant to Section 2.21.

 

“LC
Commitment” shall mean that portion of the Aggregate Revolving Commitment
Amount that may be used by the Borrower for the issuance of Letters of Credit
in an aggregate face amount not to exceed $100,000,000.

 

“LC
Disbursement” shall mean a payment made by the Issuing Bank pursuant to a
Letter of Credit.

 

12

 

“LC
Documents” shall mean the Letters of Credit and all applications,
agreements and instruments relating to the Letters of Credit.

 

“LC
Exposure” shall mean, at any time, the sum of (i) the aggregate
undrawn amount of all outstanding Letters of Credit at such time, plus (ii) the aggregate amount of all LC Disbursements
that have not been reimbursed by or on behalf of the Borrower at such time.  The LC Exposure of any Lender shall be its Pro
Rata Share of the total LC Exposure at such time.

 

“Lenders”
shall have the meaning assigned to such term in the opening paragraph of this
Agreement and shall include, where appropriate, the Swingline Lender and each
Additional Lender that joins this Agreement pursuant to Section 2.22.

 

“Letter
of Credit” shall mean any stand-by letter of credit issued pursuant to Section 2.21
by the Issuing Bank for the account of the Borrower pursuant to the LC
Commitment and the Existing Letters of Credit.

 

“Leverage
Ratio” shall mean, with respect to any Person and its Subsidiaries as of
any date, the ratio of (i) Consolidated Total Net Debt of such Person and
its Subsidiaries as of such date to (ii) Consolidated Adjusted EBITDA of
such Person and its Subsidiaries for the four consecutive Fiscal Quarters
ending on or immediately prior to such date.  
For purposes of calculating the Leverage Ratio of the Parent and
its Subsidiaries, Detroit Stoker and its Subsidiaries shall be excluded.

 

“LIBOR”
shall mean, for any applicable Interest Period with respect to any Eurodollar
Loan, the British Bankers’ Association Interest Settlement Rate per annum for
deposits in Dollars for a period equal to such Interest Period appearing on the
display designated as Page 3750 on the Dow Jones Markets Service (or such
other page on that service or such other service designated by the British
Bankers’ Association for the display of such Association’s Interest Settlement
Rates for Dollar deposits) as of 11:00 a.m. (London, England time) on the
day that is two Business Days prior to the first day of the Interest Period or
if such Page 3750 is unavailable for any reason at such time, the rate
which appears on the Reuters Screen ISDA Page as of such date and such
time; provided, that if the Administrative Agent determines that the
relevant foregoing sources are unavailable for the relevant Interest Period,
LIBOR shall mean the rate of interest determined by the Administrative Agent to
be the average (rounded upward, if necessary, to the nearest 1/100th
of 1%) of the rates per annum at which deposits in Dollars are offered to the
Administrative Agent two (2) Business Days preceding the first day of such
Interest Period by leading banks in the London interbank market as of 10:00 a.m.
(New York time) for
delivery on the first day of such Interest Period, for the number of days
comprised therein and in an amount comparable to the amount of the Eurodollar
Loan of the Administrative Agent.

 

“Lien”
shall mean any mortgage, pledge, security interest, lien (statutory or
otherwise), charge, encumbrance, hypothecation, assignment, deposit
arrangement, or other arrangement having the practical effect of the foregoing
or any preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever (including any conditional sale or
other title retention agreement and any capital lease having the same economic
effect as any of the foregoing).

 

13

 

“Loan
Documents” shall mean, collectively, this Agreement, the Notes (if any),
the LC Documents, the Guaranty Agreements, the Security Documents, all Notices
of Borrowing, all Notices of Conversion/Continuation, all Compliance
Certificates, all landlord waivers and consents, bailee agreements and any and
all other instruments, agreements, documents and writings executed in
connection with any of the foregoing.

 

“Loan
Parties” shall mean the Parent, the Borrower and the Subsidiary Loan
Parties.

 

“Loans”
shall mean all Revolving Loans and Swingline Loans in the aggregate or any of
them, as the context shall require.

 

“Material
Adverse Effect” shall mean, with respect to any event, act, condition or
occurrence of whatever nature (including any adverse determination in any
litigation, arbitration, or governmental investigation or proceeding), whether
singularly or in conjunction with any other event or events, act or acts,
condition or conditions, occurrence or occurrences whether or not related, a material
adverse change in, or a material adverse effect on, (i) the business,
results of operations, financial condition, assets, liabilities or prospects of
the Parent and its Subsidiaries taken as a whole or the Borrower and its
Subsidiaries taken as a whole, (ii) the ability of the Loan Parties to
perform any of their respective obligations under the Loan Documents, (iii) the
rights and remedies of the Administrative Agent, the Issuing Bank, Swingline
Lender, and the Lenders under any of the Loan Documents or (iv) the
legality, validity or enforceability of any of the Loan Documents.  Notwithstanding the foregoing, a non-cash
change in the Net Asbestos Liability of the Parent and Detroit Stoker
attributable solely to a change in the time horizon over which the Net Asbestos
Liability is calculated shall not constitute a Material Adverse Effect.

 

“Material
Indebtedness” shall mean Indebtedness (other than the Loans and Letters of
Credit) and Hedging Obligations of the Parent or the Borrower or any of its
Subsidiaries, individually or in an aggregate principal amount exceeding
$1,000,000.  For purposes of determining
the amount of attributed Indebtedness from Hedging Obligations, the “principal
amount” of any Hedging Obligations at any time shall be the Net Mark-to-Market
Exposure of such Hedging Obligations.

 

“Material
Subsidiary” shall mean, for any Person at any time, any direct or indirect
Subsidiary of such Person having:  (a) assets
in an amount equal to at least 5% of the total assets of such Person and its
Subsidiaries determined on a consolidated basis as of the last day of the most
recent Fiscal Quarter at such time; or (b) revenues or net income in an
amount equal to at least 5% of the total revenues or net income of such Person
and its Subsidiaries on a consolidated basis for the 12-month period ending on
the last day of the most recent Fiscal Quarter at such time.

 

“Moody’s”
shall mean Moody’s Investors Service, Inc.

 

“Mortgaged
Properties” shall mean, collectively, the Real Estate subject to the Mortgages.

 

14

 

“Mortgages”
shall mean each of the mortgages, deeds of trust, deeds to secure debt, or
other real estate security documents delivered by any Loan Party to
Administrative Agent, all in form and substance reasonably satisfactory to
Administrative Agent, as amended, restated, supplemented or otherwise modified
from time to time.

 

“Multiemployer Plan”
shall mean “Multiemployer Plan” as set forth in Section 4001(a)(3) of
ERISA and to which the Parent, the Borrower or any ERISA Affiliate contributes
or is required to contribute or has been required to contribute within the last
six years.

 

“Net Asbestos
Liability” shall mean the excess of the “Asbestos Claims Liability” over
the “Insurance Recoverable Asset”, as such amounts are set forth on the most
recent balance sheet of the Parent and its Subsidiaries delivered to the
Administrative Agent prior to the Closing Date or under Section 5.1(a) or
(c), calculating Asbestos Claims Liability and Insurance Recoverable
Asset based on the same assumptions and methodology (including time horizon)
used in the calculation of such amounts in the Parent’s December 31, 2004
financial statements.

 

“Net
Mark-to-Market Exposure” of any Person shall mean, as of any date of determination
with respect to any Hedging Obligation, the excess (if any) of all unrealized
losses over all unrealized profits of such Person arising from such Hedging
Obligation.  “Unrealized losses” shall
mean the fair market value of the cost to such Person of replacing the Hedging
Transaction giving rise to such Hedging Obligation as of the date of
determination (assuming the Hedging Transaction were to be terminated as of
that date), and “unrealized profits” means the fair market value of the gain to
such Person of replacing such Hedging Transaction as of the date of
determination (assuming such Hedging Transaction were to be terminated as of
that date).

 

“Non-U.S.
Subsidiary” shall mean a direct or indirect Subsidiary of the Borrower
organized in a jurisdiction outside the United States where guarantee of the
Obligations by such Subsidiary would result in adverse U.S. federal income tax
consequences to the Parent or the Borrower.

 

“Notes”
shall mean, collectively, the Revolving Credit Notes and the Swingline Note.

 

“Notices
of Borrowing” shall mean, collectively, the Notices of Revolving Borrowing
and the Notices of Swingline Borrowing.

 

“Notice
of Conversion/Continuation” shall mean the
notice given by the Borrower to the Administrative Agent in respect of the
conversion or continuation of an outstanding Borrowing as provided in Section 2.6(b).

 

“Notice
of Revolving Borrowing” shall have the meaning as set forth in Section 2.3.

 

“Notice
of Swingline Borrowing” shall have
the meaning as set forth in Section 2.4.

 

15

 

“Obligations”
shall mean all amounts owing by the Borrower to the Administrative Agent, the
Issuing Bank or any Lender (including the Swingline Lender) pursuant to or in
connection with this Agreement or any other Loan Document, including without
limitation, all principal, interest (including any interest accruing after the
filing of any petition in bankruptcy or the commencement of any insolvency,
reorganization or like proceeding relating to the Borrower, whether or not a
claim for post-filing or post-petition interest is allowed in such proceeding),
all reimbursement obligations, fees, expenses, indemnification and
reimbursement payments, costs and expenses (including all fees and expenses of
counsel to the Administrative Agent, the Issuing Bank and any Lender (including
the Swingline Lender) incurred pursuant to this Agreement or any other Loan
Document), whether direct or indirect, absolute or contingent, liquidated or
unliquidated, now existing or hereafter arising hereunder or thereunder, and all
Hedging Obligations owed to the Administrative Agent, any Lender or any of
their Affiliates incurred in order to limit interest rate or fee fluctuation
with respect to the Loans and Letters of Credit, and all obligations and liabilities incurred in connection with
collecting and enforcing the foregoing, together with all renewals, extensions,
modifications or refinancings thereof.

 

“Off-Balance
Sheet Liabilities” of any Person shall mean (i) any repurchase
obligation or liability of such Person with respect to accounts or notes
receivable sold by such Person, (ii) any liability of such Person under
any sale and leaseback transactions that do not create a liability on the
balance sheet of such Person, (iii) any Synthetic Lease Obligation or (iv) any
obligation arising with respect to any other transaction which is the
functional equivalent of or takes the place of borrowing but which does not
constitute a liability on the balance sheet of such Person.

 

“OSHA”
shall mean the Occupational Safety and Health Act of 1970, as amended from time
to time, and any successor statute.

 

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

 

“Parent”
shall mean United Industrial Corporation, a Delaware corporation.

 

“Parent
Guaranty Agreement” shall mean that certain Parent Guaranty Agreement,
dated as of the date hereof and substantially in the form of Exhibit E,
made by the Parent in favor of the Administrative Agent for the benefit of the
Lenders, as amended, restated, supplemented or otherwise modified from
time to time.

 

“Parent Pledge Agreement” shall mean certain Pledge Agreement,
dated as of the date hereof, executed by the Parent in favor of the
Administrative Agent for the benefit of the Lenders, pursuant to the which the
Parent shall pledge 100% of the Capital Stock of the Borrower to secure the
Obligations, as amended, restated, supplemented or otherwise modified from time
to time.

 

“Participant”
shall have the meaning set forth in Section 10.4(d).

 

16

 

“Patent” shall have the meaning assigned to
such term in the Security Agreement.

 

“Patent
Security Agreements” shall mean, collectively, the Patent Security
Agreements executed by the Loan Parties owning Patents or licenses of Patents
in favor of the Administrative Agent, on behalf of itself and Lenders, both on
the Closing Date and thereafter, as amended, restated, supplemented or
otherwise modified from time to time.

 

“Payment
Office” shall mean the office of the Administrative Agent located at 303
Peachtree Street, N.E., Atlanta, Georgia 30308, or such other location as to
which the Administrative Agent shall have given written notice to the Borrower
and the other Lenders.

 

“PBGC” shall mean the Pension Benefit Guaranty Corporation
referred to and defined in ERISA, and any successor entity performing similar
functions.

 

“Perfection Certificate” shall have
the meaning assigned to such term in the Security Agreement.

 

“Permitted
Acquisition” shall mean an acquisition by the Borrower or any of its
Subsidiaries of a majority of the Capital Stock or other ownership interests of
another entity, or the assets of another entity or a division or other business
segment or unit thereof, whether through purchase, merger, or other business
combination or transaction, provided that (i) the entity or
business so acquired is in the same line of business as the Borrower and its
Subsidiaries or a business reasonably related thereto, (ii) the board of
directors (or the equivalent thereof)of the Person whose assets or stock is
being acquired has approved the acquisition, (iii) on the date of such
acquisition and after giving effect thereto, no Default or Event of Default
shall have occurred and be continuing, and all representations and warranties
of each Loan Party set forth in the Loan Documents shall be and remain true and
correct in all material respects, (iv) after giving effect to such
acquisition, the Leverage Ratio for
the Borrower and its Subsidiaries would not exceed 2.50:1.00, and the Parent,
the Borrower and its Subsidiaries shall otherwise be in compliance, on a
pro forma basis, with all covenants contained in Articles VI and VII, which
shall be recomputed as of the day of the most recently ended Fiscal Quarter
(for which financial statements are required to have been delivered) as if such
acquisition has occurred of the first day of each relevant period for testing
compliance, and the Borrower shall have delivered to the Administrative Agent a
certificate of the chief financial officer or treasurer to such effect; (v) the
Borrower and its Subsidiaries acquiring any assets or stock shall be Solvent
after giving effect to such acquisition and shall have executed and delivered
all guarantees, collateral documents and other related documents required under
Sections 5.10 and 5.14; and (vi) the acquired entity or
assets have Consolidated Adjusted EBITDA for the most recently ended twelve
months that is greater than $0; provided, further, that no
acquisition shall be permitted without the prior written approval of the
Administrative Agent and the Required Lenders where the total consideration
paid (including all Indebtedness incurred or
assumed and any Capital Stock issued or delivered as consideration) (x) exceeds
$25,000,000 in any single transaction or series of related transactions, or (y)
when taken together with all other acquisitions effected during the same Fiscal
Year, exceeds $50,000,000.

 

17

 

“Permitted
Encumbrances” shall mean:

 

(i)                                     Liens imposed by law for taxes not yet due or
which are being contested in good faith by appropriate proceedings and with
respect to which adequate reserves are being maintained in accordance with
GAAP;

 

(ii)                                  statutory Liens of landlords, carriers, warehousemen,
mechanics, materialmen and similar Liens arising by operation of law in the
ordinary course of business for amounts not yet due or which are being
contested in good faith by appropriate proceedings and with respect to which
adequate reserves are being maintained in accordance with GAAP;

 

(iii)                               pledges and deposits made in the ordinary
course of business in compliance with workers’ compensation, unemployment
insurance and other social security laws or regulations;

 

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

 

(v)                                 judgment and attachment liens not giving rise
to an Event of Default or Liens created by or existing from any litigation or
legal proceeding that are currently being contested in good faith by
appropriate proceedings and with respect to which adequate reserves are being
maintained in accordance with GAAP; and

 

(vi)                              easements, zoning restrictions, rights-of-way
and similar encumbrances on real property imposed by law or arising in the
ordinary course of business that do not secure any monetary obligations and do
not materially detract from the value of the affected property or materially
interfere with the ordinary conduct of business of the Borrower and its
Subsidiaries taken as a whole;

 

provided,
that the term “Permitted Encumbrances” shall not include any Lien securing
Indebtedness.

 

“Permitted
Investments” shall mean:

 

(i)                                     direct
obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States (or by any agency thereof to
the extent such obligations are backed by the full faith and credit of the
United States), in each case maturing within one year from the date of
acquisition thereof;

 

(ii)                                  commercial paper having the highest rating,
at the time of acquisition thereof, of S&P or Moody’s and in either case
maturing within six months from the date
of acquisition thereof;

 

(iii)                               certificates of deposit, bankers’ acceptances
and time deposits maturing within 180 days of the date of acquisition thereof
issued or guaranteed by or placed with, and money market deposit accounts
issued or offered by, any domestic office of any commercial bank organized
under the laws of the United States or any state thereof which has a combined
capital and surplus and undivided profits of not less than $500,000,000;

 

18

 

(iv)                              fully collateralized repurchase agreements
with a term of not more than 30 days for securities described in clause (i) above
and entered into with a financial institution satisfying the criteria described
in clause (iii) above;

 

(v)                                 variable rate securities issued by any state
of the United States or any political subdivision of any such state or any
public instrumentality thereof, in each case maturing within thirty days
from the date of acquisition thereof
and having, at the time of the acquisition thereof, the highest rating
obtainable from either S&P or Moody’s;

 

(vi)                              mutual
funds investing solely in any one or more of the Permitted Investments
described in clauses (i) through (iv) above; and

 

(vii)                           investments described on Schedule 1.1A.

 

“Permitted
Other Dividends” shall mean dividends and distributions on, and redemptions
and repurchases of, the capital stock of the Parent paid to the Parent’s
stockholders, excluding Permitted UIC Cash Dividends, so long as after giving
pro forma effect thereto, (i) the Parent is in compliance with Section 6.5, (ii) the Borrower is in compliance with Sections
6.1, 6.2 and 6.3, (iii) each of the Parent and the Borrower is
Solvent and (iv) no Default or Event of Default has occurred and is
continuing.

 

“Permitted Other
Investments” shall mean investments of funds by the Borrower and its
Subsidiaries in any marketable securities, including without limitation
short-term collateralized investments in U.S. treasuries known as “repo”
investments, and investments in up to 4.99% of the capital stock of publicly
traded companies and reinvestments thereof from time to time in the foregoing
types of investments, so long as after giving pro forma effect thereto, no
Default or Event of Default has occurred and is continuing, but in any event
excluding Permitted UIC Cash Investments.

 

“Permitted
UIC Cash Acquisition” shall mean an acquisition by a Subsidiary of the
Parent (other than the Borrower, Detroit Stoker or any of the respective
Subsidiaries) of a majority of the Capital Stock or other ownership interests
of another entity, or the assets of another entity or a division or other
business segment or unit thereof, whether through purchase, merger, or other
business combination or transaction, to the extent designated by the Parent or
the Borrower to the Agent and Lenders as being funded from UIC Cash; provided,
however, that (i) such acquisition would constitute a Permitted
Acquisition except that the Administrative Agent and the Required Lenders
withheld their approval thereto, and (ii) on the date such acquisition is
consummated and after giving effect to such distribution, (A) the Borrower
and its Subsidiaries are in pro forma compliance with Sections 6.1, 6.2
and 6.3, (B) the Parent and its Subsidiaries are in pro forma
compliance with Sections 6.4 and 6.5, and (C) no Default or Event
of Default has occurred and is continuing.

 

“Permitted UIC Cash CapEx”
shall mean Capital Expenditures by the Borrower and its Subsidiaries (other
than the acquisition of stock of, or all or a material portion of the assets
of, another Person) to the extent designated by the Parent or the Borrower to
the Agent and Lenders as being funded from UIC Cash, so long as after giving
pro forma effect thereto, no Default or Event of Default has occurred and is
continuing.

 

19

 

“Permitted UIC Cash
Dividends” shall mean dividends and distributions on, and redemptions and
repurchases of, the Capital Stock of the Parent paid to the Parent’s
stockholders, to the extent designated by the Parent or the Borrower to the
Agent and Lenders as being funded from UIC Cash, so long as after giving pro
forma effect thereto, (i) the Borrower is in compliance with Sections
6.1, 6.2 and 6.3, (ii) the Parent and its Subsidiaries are in
pro forma compliance with Sections 6.4 and 6.5, (iii) each of the
Parent and the Borrower is Solvent and (iv) no Default or Event of Default
has occurred and is continuing.

 

“Permitted UIC Cash
Investments” shall mean the investment by the Borrower and its Subsidiaries
in any marketable securities, including without limitation short-term
collateralized investments in U.S. treasuries known as “repo” investments, and
investments in up to 4.99% of the capital stock of publicly traded companies
and reinvestments thereof from time to time in the foregoing types of investments, to the extent designated by
the Parent or the Borrower to the Agent and Lenders as being funded from UIC
Cash, so long as after giving pro forma effect thereto, no Default or Event of
Default has occurred and is continuing.

 

“Person”
shall mean any individual, partnership, firm, corporation, association, joint
venture, limited liability company, trust or other entity, or any Governmental
Authority.

 

“Plan”
shall mean any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the Code
or Section 302 of ERISA, and in respect of which the Borrower or any ERISA
Affiliate is (or, if such plan were terminated, would under Section 4069
of ERISA be deemed to be) an “employer” as defined in Section 3(5) of
ERISA.

 

“Pledge Agreements” shall mean, collectively, the Borrower Pledge Agreement,
the Parent Pledge Agreement and all other pledge agreements, share charges and
similar instruments executed by a Loan Party in favor of the Administrative
Agent in connection herewith prior to, on or after the Closing Date, as
amended, restated, supplemented or otherwise modified from time to time.

 

“Pro
Rata Share” shall mean with respect to any Commitment of any Lender at any
time, a percentage, the numerator of which shall be such Lender’s Commitment
(or if such Commitments have been terminated or expired or the Loans have been
declared to be due and payable, such Lender’s Revolving Credit Exposure), and
the denominator of which shall be the sum of such Commitments of all Lenders
(or if such Commitments have been terminated or expired or the Loans have been
declared to be due and payable, all Revolving Credit Exposure of all Lenders).

 

“Real
Estate” shall mean all real property owned or leased by the Borrower and
its Subsidiaries.

 

“Real
Estate Documents” shall mean collectively, the Mortgages, the Environmental
Indemnity, and all other documents, instruments, agreements and certificates
executed and delivered by any Loan Party to the Administrative Agent and the
Lenders in connection with the foregoing.

 

20

 

“Regulation D”
shall mean Regulation D of the Board of Governors of the Federal Reserve
System, as the same may be in effect from time to time, and any successor
regulations.

 

“Related
Parties” shall mean, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, employees, agents and
advisors of such Person and such Person’s Affiliates.

 

“Release”
shall mean any release, spill, emission, leaking, dumping, injection, pouring,
deposit, disposal, discharge, dispersal, leaching or migration into the
environment (including ambient air, surface water, groundwater, land surface or
subsurface strata) or within any building, structure, facility or fixture in
violation of applicable Environmental Law.

 

“Required
Lenders” shall mean, at any time, Lenders holding more than 50% of the
aggregate outstanding Revolving Commitments at such time or if the Lenders have
no Commitments outstanding, then Lenders holding more than 50% of the Revolving
Credit Exposure.

 

“Requirement
of Law” for any Person shall mean the articles or certificate of
incorporation, bylaws, partnership certificate and agreement, or limited
liability company certificate of organization and agreement, as the case may
be, and other organizational and governing documents of such Person, and any
law, treaty, rule or regulation, or determination of a Governmental
Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.

 

“Responsible
Officer” shall mean any of the president, the chief executive officer, the
chief operating officer, the chief financial officer, the treasurer or a vice
president of the Parent or the Borrower, as applicable, or such other
representative of the Parent or the Borrower, as applicable, as may be
designated in writing by any one of the foregoing with the consent of the
Administrative Agent; and, with respect to the financial covenants only, the
chief financial officer or the treasurer of the Parent or the Borrower, as
applicable.

 

“Restricted
Payment” shall have the meaning set forth in Section 7.5.

 

“Restricted
Subsidiary” shall mean all Subsidiaries of the Borrower, other than
Subsidiaries of the Borrower that are not (and are not required hereunder to
be) Subsidiary Loan Parties.

 

“Revolving
Commitment” shall mean, with respect to each Lender, the obligation of such
Lender to make Revolving Loans to the Borrower and to participate in Letters of
Credit and Swingline Loans in an aggregate principal amount not exceeding the
amount set forth with respect to such Lender on Schedule II, as
such schedule may be amended pursuant to Section 2.22, or in
the case of a Person becoming a Lender after the Closing Date through an
assignment of an existing Revolving Commitment, the amount of the assigned “Revolving
Commitment” as provided in the Assignment and Acceptance executed by such
Person as an assignee, as the same may be increased or deceased pursuant to
terms hereof.

 

21

 

“Revolving
Commitment Termination Date” shall mean the earliest of (i) July 18,
2009, as such date may be extended pursuant to Section 2.23,
(ii) the date on which the
Revolving Commitments are terminated pursuant to Section 2.7 and (iii) the
date on which all amounts outstanding under this Agreement have been declared
or have automatically become due and payable (whether by acceleration or
otherwise).

 

“Revolving
Credit Exposure” shall mean, with respect to any Lender at any time, the
sum of the outstanding principal amount of such Lender’s Revolving Loans, LC
Exposure and Swingline Exposure.

 

“Revolving
Credit Note” shall mean a promissory note of the Borrower payable to the
order of a requesting Lender in the principal amount of such Lender’s Revolving
Commitment, in substantially the form of Exhibit A.

 

“Revolving
Loan” shall mean a loan made by a Lender (other than the Swingline Lender)
to the Borrower under its Revolving Commitment, which may either be a Base Rate
Loan or a Eurodollar Loan.

 

“S&P”
shall mean Standard & Poor’s, a Division of the McGraw-Hill Companies.

 

“Security Agreement” shall mean that
certain Security Agreement, dated as of the date hereof, executed by the
Parent, the Borrower and the Subsidiary Loan Parties in favor of the
Administrative Agent for the benefit of the Lenders, as amended, restated,
supplemented or otherwise modified from time to time.

 

“Security Documents” shall mean,
collectively, the Security Agreement, the Pledge Agreements, the Mortgages, the
other Real Estate Documents, the Control Account Agreements, the Perfection
Certificate, and all other instruments and agreements now or hereafter securing
the whole or any part of the Obligations or any Guarantee thereof, all UCC
financing statements, fixture filings, stock powers, and all other documents,
instruments, agreements and certificates executed and delivered by any Loan
Party to the Administrative Agent and the Lenders in connection with the
foregoing.

 

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

 

22

 

“Subsidiary”
shall mean, with respect to any Person (the “owner”), any corporation,
partnership, joint venture, limited liability company, association or other
entity the accounts of which would be consolidated with those of the owner in
the owner’s consolidated financial statements if such financial statements were
prepared in accordance with GAAP as of such date, as well as any other
corporation, partnership, joint venture, limited liability company, association
or other entity (i) of which securities or other ownership interests
representing more than 50% of the equity or more than 50% of the ordinary
voting power, or in the case of a partnership, more than 50% of the general
partnership interests are, as of such date, owned, controlled or held, or (ii) that
is, as of such date, otherwise controlled, by the owner or one or more
subsidiaries of the owner or by the owner and one or more subsidiaries of the
owner.  Unless otherwise indicated, all
references to “Subsidiary” hereunder shall mean a Subsidiary of the Borrower.

 

“Subsidiary
Guaranty Agreement” shall mean the Subsidiary Guaranty Agreement, dated as
of the date hereof and substantially in the form of Exhibit D, made
by certain Subsidiaries of the Borrower in favor of the Administrative Agent
for the benefit of the Lenders, as amended, restated, supplemented or
otherwise modified from time to time.

 

“Subsidiary
Guaranty Supplement” shall mean each supplement substantially in the form
of Schedule II to the Subsidiary Guaranty Agreement executed and
delivered by a Subsidiary of the Borrower pursuant to Section 5.10.

 

“Subsidiary
Loan Party” shall mean any Subsidiary that executes or becomes a party to
the Subsidiary Guaranty Agreement.

 

“Swingline
Commitment” shall mean the commitment of the Swingline Lender to make
Swingline Loans in an aggregate principal amount at any time outstanding not to
exceed $5,000,000.

 

“Swingline
Exposure” shall mean, with respect to each Lender, the principal amount of
the Swingline Loans in which such Lender is legally obligated either to make a
Base Rate Loan or to purchase a participation in accordance with Section 2.4,
which shall equal such Lender’s Pro Rata Share of all outstanding Swingline
Loans.

 

“Swingline
Lender” shall mean SunTrust Bank, or any other Lender that may agree to
make Swingline Loans hereunder.

 

“Swingline
Loan” shall mean a loan made to the Borrower by the Swingline Lender under
the Swingline Commitment.

 

“Swingline
Note” shall mean the promissory note of the Borrower payable to the order
of the Swingline Lender in the principal amount of the Swingline Commitment,
substantially the form of Exhibit B.

 

“Swingline
Rate” shall mean, for any Interest Period, the rate as offered by the
Swingline Lender and accepted by the Borrower. 
The Borrower is under no obligation to accept this rate, and the
Swingline Lender is under no obligation to provide it.

 

23

 

“Synthetic
Lease” shall mean a lease transaction under which the parties intend that (i) the
lease will be treated as an “operating lease” by the lessee pursuant to
Statement of Financial Accounting Standards No. 13, as amended and (ii) the
lessee will be entitled to various tax and other benefits ordinarily available
to owners (as opposed to lessees) of like property.

 

“Synthetic
Lease Obligations” shall mean, with respect to any Person, the sum of (i) all
remaining rental obligations of such Person as lessee under Synthetic Leases
which are attributable to principal and, without duplication, (ii) all rental
and purchase price payment obligations of such Person under such Synthetic
Leases assuming such Person exercises the option to purchase the lease property
at the end of the lease term.

 

“Taxes”
shall mean any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority.

 

“Trademark” shall have the meaning assigned to
such term in the Security Agreement.

 

“Trademark Security Agreements” shall mean,
collectively, the Trademark Security Agreements executed by the Loan Parties
owning Trademarks or licenses of Trademarks in favor of the Administrative
Agent, on behalf of itself and Lenders, both on the Closing Date and
thereafter, as amended, restated, supplemented or otherwise modified from time
to time.

 

“Type”, when used in
reference to a Loan or Borrowing, refers to whether the rate of interest on
such Loan, or on the Loans comprising such Borrowing, is determined by
reference to the Adjusted LIBO Rate or the Base Rate.

 

“Uniform
Commercial Code” or “UCC” shall mean the Uniform Commercial
Code as in effect from time to time in the State of New York.

 

“UIC Cash” shall
mean, at any time, an amount equal to (i) $80,437,000, less (ii) the
aggregate amount of Permitted UIC Cash Dividends made after the Closing Date,
less (iii) the aggregate amount of Permitted UIC Cash CapEx made after the
Closing Date.

 

“Withdrawal
Liability” shall mean liability to a Multiemployer Plan as a result of the
Borrower or an ERISA Affiliates’ complete or partial withdrawal from such
Multiemployer Plan, as such terms are defined in Part I of Subtitle E of
Title IV of ERISA.

 

Section 1.2.                                Classifications of Loans and
Borrowings.  For purposes of this Agreement, Loans may be
classified and referred to by Class (e.g. a “Revolving Loan” or “Swingline
Loan”) or by Type (e.g. a “Eurodollar Loan” or “Base Rate Loan”) or by Class and
Type (e.g. “Revolving Eurodollar Loan”). 
Borrowings also may be classified and referred to by Class (e.g. “Revolving
Borrowing”) or by Type (e.g. “Eurodollar Borrowing”) or by Class and Type
(e.g. “ Revolving Eurodollar Borrowing”).

 

Section 1.3.                                Accounting Terms and
Determination.  Unless otherwise defined or specified herein,
all accounting terms used herein shall be interpreted, all accounting

 

24

 

determinations hereunder
shall be made, and all financial statements required to be delivered hereunder
shall be prepared, in accordance with GAAP as in effect from time to time,
applied on a basis consistent with the most recent audited consolidated
financial statement of the Borrower delivered pursuant to Section 5.1(a);
provided, that if the Borrower notifies the Administrative Agent that
the Borrower wishes to amend any covenant in Article VI to eliminate
the effect of any change in GAAP on the operation of such covenant (or if the
Administrative Agent notifies the Borrower that the Required Lenders wish to
amend Article VI for such purpose), then the Borrower’s compliance
with such covenant shall be determined on the basis of GAAP in effect
immediately before the relevant change in GAAP became effective, until either
such notice is withdrawn or such covenant is amended in a manner satisfactory
to the Borrower and the Required Lenders.

 

Section 1.4.                                Terms Generally.  The definitions of terms herein
shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have
the same meaning and effect as the word “shall”.  In the computation of periods of time from a
specified date to a later specified date, the word “from” means “from and
including” and the word “to” means “to but excluding”.  Unless the context requires otherwise (i) any
definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other
document as it was originally executed or as it may from time to time be
amended, restated, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth
herein), (ii) any reference herein to any Person shall be construed to
include such Person’s successors and permitted assigns, (iii) the words “hereof”,
“herein” and “hereunder” and words of similar import shall be construed to
refer to this Agreement as a whole and not to any particular provision hereof, (iv) all
references to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles, Sections, Exhibits and Schedules to this
Agreement and (v) all references to a specific time shall be construed to
refer to the time in the city and state of the Administrative Agent’s principal
office, unless otherwise indicated.

 

ARTICLE II

AMOUNT AND TERMS OF THE COMMITMENTS

 

Section 2.1.                                General Description of Facilities. 
Subject to and upon the terms and conditions herein set forth, (i) the
Lenders hereby establish in favor of the Borrower a revolving credit facility
pursuant to which each Lender severally agrees (to the extent of such Lender’s
Revolving Commitment) to make Revolving Loans to the Borrower in accordance
with Section 2.2, (ii) the Issuing Bank agrees to issue
Letters of Credit in accordance with Section 2.21, (iii) the
Swingline Lender agrees to make Swingline Loans in accordance with Section 2.4,
and (iv) each Lender agrees to purchase a participation interest in the
Letters of Credit and the Swingline Loans pursuant to the terms and conditions
hereof; provided, that in no event shall the aggregate principal amount
of all outstanding Revolving Loans, Swingline Loans and 

 

25

 

outstanding LC Exposure
exceed at any time the Aggregate Revolving Commitment Amount from time to time
in effect.

 

Section 2.2.                                Revolving Loans. 
Subject to the terms and conditions set forth herein, each Lender
severally agrees to make Revolving Loans, ratably in proportion to its Pro Rata
Share, to the Borrower, from time to time during the Availability
Period, in an aggregate principal amount outstanding at any time that will not
result in (a) such Lender’s Revolving Credit Exposure exceeding such
Lender’s Revolving Commitment or (b) the sum of the aggregate Revolving
Credit Exposures of all Lenders exceeding the Aggregate Revolving Commitment
Amount.  During the Availability Period,
the Borrower shall be entitled to borrow, prepay and reborrow Revolving Loans
in accordance with the terms and conditions of this Agreement; provided,
that the Borrower may not borrow or reborrow should there exist a Default or
Event of Default.

 

Section 2.3.                                Procedure for Revolving
Borrowings.

 

The
Borrower shall give the Administrative Agent written notice (or telephonic
notice promptly confirmed in writing) of each Revolving Borrowing substantially
in the form of Exhibit 2.3 (a “Notice of Revolving Borrowing”)
(x) prior to 11:00 a.m. (New York time) on the date of the requested date of each
Base Rate Borrowing and (y) prior to 11:00 a.m. (New York time) three (3) Business Days prior to the
requested date of each Eurodollar Borrowing. 
Each Notice of Revolving Borrowing shall be irrevocable and shall specify: (i) the aggregate principal amount of
such Borrowing, (ii) the date of such Borrowing (which shall be a Business
Day), (iii) the Type of such Revolving Loan comprising such Borrowing and (iv) in
the case of a Eurodollar Borrowing, the duration of the initial Interest Period
applicable thereto (subject to the provisions of the definition of Interest
Period).  Each Revolving Borrowing shall
consist entirely of Base Rate Loans or Eurodollar Loans, as the Borrower may request.  The aggregate principal amount of each
Eurodollar Borrowing shall be not less than $1,000,000 or a larger multiple of
$500,000, and the aggregate principal amount of each Base Rate Borrowing shall
not be less than $500,000 or a larger multiple of $100,000; provided,
that Base Rate Loans made pursuant to Section 2.4 or Section 2.21(d) may
be made in lesser amounts as provided therein. 
At no time shall the total number of Eurodollar Borrowings outstanding
at any time exceed six.  Promptly
following the receipt of a Notice of Revolving Borrowing in accordance
herewith, the Administrative Agent shall advise each Lender of the details
thereof and the amount of such Lender’s Revolving Loan to be made as part of
the requested Revolving Borrowing.

 

Section 2.4.                                Swingline Commitment.

 

(a)                                  Subject
to the terms and conditions set forth herein, the Swingline Lender agrees to
make Swingline Loans to the Borrower, from time to time during the Availability
Period, in an aggregate principal amount outstanding at any time not to exceed
the lesser of (i) the Swingline Commitment then in effect and (ii) the
difference between the Aggregate Revolving Commitment Amount and the aggregate
Revolving Credit Exposures of all Lenders; provided, that the Swingline
Lender shall not be required to make a Swingline Loan to refinance an
outstanding Swingline Loan.  The Borrower
shall be entitled to borrow, repay and reborrow Swingline Loans in accordance
with the terms and conditions of this Agreement.

 

26

 

(b)                                 The Borrower may obtain Swingline Advances as
follows:

 

(i)                                     The
Borrower shall give the Administrative Agent written notice (or telephonic
notice promptly confirmed in writing) of each Swingline Borrowing substantially
in the form of Exhibit 2.4 attached hereto (“Notice of Swingline
Borrowing”) prior to 11:00 a.m. (New York time) on the requested date
of each Swingline Borrowing.  Each Notice
of Swingline Borrowing shall be irrevocable and shall specify: (1) the
principal amount of such Swingline Loan, (2) the date of such Swingline
Loan (which shall be a Business Day) and (3) the account of the Borrower
to which the proceeds of such Swingline Loan should be credited.  The Administrative Agent will promptly advise
the Swingline Lender of each Notice of Swingline Borrowing.  Each Swingline Loan shall accrue interest at
the Base Rate or the Swingline Rate and shall have an Interest Period (subject
to the definition thereof) as agreed between the Borrower and the Swingline
Lender.  The aggregate principal amount
of each Swingline Loan shall be not less than $100,000
or a larger multiple of $50,000, or such other minimum amounts agreed to by the
Swingline Lender and the Borrower.  The
Swingline Lender will make the proceeds of each Swingline Loan available to the
Borrower in Dollars in immediately available funds at the account specified by
the Borrower in the applicable Notice of Swingline Borrowing not later than
1:00 p.m. (New York time) on the requested date of such Swingline Loan.

 

(ii)                                  If
Borrower and the Swingline Lender are parties to a Business Sweep Account
Agreement, the Borrower may obtain Swingline Advances from time to time in
accordance with said Business Sweep Account Agreement.

 

(c)                                  The Swingline Lender, at any time and from
time to time in its sole discretion, may, on behalf of the Borrower (which
hereby irrevocably authorizes and directs the Swingline Lender to act on its
behalf), give a Notice of Revolving Borrowing to the Administrative Agent
requesting the Lenders (including the Swingline Lender) to make Base Rate Loans
in an amount equal to the unpaid principal amount of any Swingline Loan.  Each Lender will make the proceeds of its
Base Rate Loan included in such Borrowing available to the Administrative Agent
for the account of the Swingline Lender in accordance with Section 2.5,
which will be used solely for the repayment of such Swingline Loan.

 

(d)                                 If for any reason a Base Rate Borrowing may
not be (as determined in the sole discretion of the Administrative Agent), or
is not, made in accordance with the foregoing provisions, then each Lender
(other than the Swingline Lender) shall purchase an undivided participating
interest in such Swingline Loan in an amount equal to its Pro Rata Share
thereof on the date that such Base Rate Borrowing should have occurred.  On the date of such required purchase, each
Lender shall promptly transfer, in immediately available funds, the amount of
its participating interest to the Administrative Agent for the account of the
Swingline Lender.  If such Swingline Loan
bears interest at a rate other than the Base Rate, such Swingline Loan shall
automatically become a Base Rate Loan on the effective date of any such
participation and interest shall become payable on demand.

 

(e)                                  Each Lender’s obligation to make a Base Rate
Loan pursuant to Section 2.4(c) or to purchase the
participating interests pursuant to Section 2.4(d) shall
be absolute and 

 

27

 

unconditional and shall not
be affected by any circumstance, including without limitation (i) any
setoff, counterclaim, recoupment, defense or other right that such Lender or
any other Person may have or claim against the Swingline Lender, the Borrower
or any other Person for any reason whatsoever, (ii) the existence of a
Default or an Event of Default or the termination of any Lender’s Revolving
Commitment, (iii) the existence (or alleged existence) of any event or
condition which has had or could reasonably be expected to have a Material
Adverse Effect, (iv) any breach of this Agreement or any other Loan
Document by the Borrower, the Administrative Agent or any Lender or (v) any
other circumstance, happening or event whatsoever, whether or not similar to
any of the foregoing.  If such amount is
not in fact made available to the Swingline Lender by any Lender, the Swingline
Lender shall be entitled to recover such amount on demand from such Lender,
together with accrued interest thereon for each day from the date of demand
thereof (i) at the Federal Funds Rate until the second Business Day after
such demand and (ii) at the Base Rate at all times thereafter.  Until such time as such Lender makes its
required payment, the Swingline Lender shall be deemed to continue to have
outstanding Swingline Loans in the amount of the unpaid participation for all
purposes of the Loan Documents.  In
addition, such Lender shall be deemed to have assigned any and all payments
made of principal and interest on its Loans and any other amounts due to it
hereunder, to the Swingline Lender to fund the amount of such Lender’s
participation interest in such Swingline Loans that such Lender failed to fund
pursuant to this Section 2.4, until such amount has been purchased
in full.

 

Section 2.5.                                Funding of Borrowings.

 

(a)                                  Each Lender will make available each Loan to
be made by it hereunder on the proposed date thereof by wire transfer in
immediately available funds by 1:00 p.m. (New York time) to the Administrative Agent at the Payment
Office; provided, that the Swingline Loans will be made as set forth in Section 2.4.  The Administrative Agent will make such Loans
available to the Borrower by promptly crediting the amounts that it receives,
in like funds by the close of business on such proposed date, to an account
maintained by the Borrower with the Administrative Agent or at the Borrower’s
option, by effecting a wire transfer of such amounts to an account designated
by the Borrower to the Administrative Agent.

 

(b)                                 Unless the Administrative Agent shall have
been notified by any Lender prior to 5:00 p.m. (New York time) one (1) Business Day prior to the date
of a Borrowing in which such Lender is to participate that such Lender will not
make available to the Administrative Agent such Lender’s share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
amount available to the Administrative Agent on such date, and the
Administrative Agent, in reliance on such assumption, may make available to the
Borrower on such date a corresponding amount. 
If such corresponding amount is not in fact made available to the
Administrative Agent by such Lender on the date of such Borrowing, the
Administrative Agent shall be entitled to recover such corresponding amount on
demand from such Lender together with interest at the Federal Funds Rate until
the second Business Day after such demand and thereafter at the Base Rate.  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 immediately pay such corresponding amount to the Administrative Agent
together with interest at the rate specified for such Borrowing.  Nothing in this subsection shall be
deemed to relieve any Lender from its obligation to 

 

28

 

fund its Pro Rata Share of
any Borrowing hereunder or to prejudice any rights which the Borrower may have
against any Lender as a result of any default by such Lender hereunder.

 

(c)                                  All Revolving Borrowings shall be made by the
Lenders on the basis of their respective Pro Rata Shares.  No Lender shall be responsible for any
default by any other Lender in its obligations hereunder, and each Lender shall
be obligated to make its Loans provided to be made by it hereunder, regardless
of the failure of any other Lender to make its Loans hereunder.

 

Section 2.6.                                Interest Elections.

 

(a)                                  Each Borrowing initially shall be of the Type
specified in the applicable Notice of Borrowing, and in the case of a
Eurodollar Borrowing, shall have an initial Interest Period as specified in
such Notice of Borrowing.  Thereafter,
the Borrower may elect to convert such Borrowing into a different Type or to
continue such Borrowing, and in the case of a Eurodollar Borrowing, may elect
Interest Periods therefor, all as provided in this Section 2.6.  The Borrower may elect different options with
respect to different portions of the affected Borrowing, in which case each
such portion shall be allocated ratably among the Lenders holding Loans
comprising such Borrowing, and the Loans comprising each such portion shall be
considered a separate Borrowing.  This Section shall
NOT apply to Swingline Borrowings, which may not be converted or continued.

 

(b)                                 To make an election pursuant to this Section 2.6,
the Borrower shall give the Administrative Agent prior written notice (or
telephonic notice promptly confirmed in writing) of each Borrowing
substantially in the form of Exhibit 2.6 attached hereto (a “Notice
of Conversion/Continuation”) that is to be converted or continued, as the
case may be, (x) prior to 11:00 a.m. (New York time) on the requested date of a conversion into a
Base Rate Borrowing and (y) prior to 11:00 a.m. (New York time) three (3) Business Days prior to a continuation
of or conversion into a Eurodollar Borrowing. 
Each such Notice of Conversion/Continuation shall be irrevocable and
shall specify (i) the Borrowing to which such Notice of
Continuation/Conversion applies and if different options are being elected with
respect to different portions thereof, the portions thereof that are to be
allocated to each resulting Borrowing (in which case the information to be
specified pursuant to clauses (iii) and (iv) shall be specified for
each resulting Borrowing); (ii) the effective date of the election made
pursuant to such Notice of Continuation/Conversion, which shall be a Business
Day, (iii) whether the resulting Borrowing is to be a Base Rate Borrowing
or a Eurodollar Borrowing; and (iv) if the resulting Borrowing is to be a
Eurodollar Borrowing, the Interest Period applicable thereto after giving
effect to such election, which shall be a period contemplated by the definition
of “Interest Period”.  If any such Notice
of Continuation/Conversion requests a Eurodollar Borrowing but does not specify
an Interest Period, the Borrower shall be deemed to have selected an Interest
Period of one month.  The principal
amount of any resulting Borrowing shall satisfy the minimum borrowing amount
for Eurodollar Borrowings and Base Rate Borrowings set forth in Section 2.3.

 

(c)                                  If, on the expiration of any Interest Period
in respect of any Eurodollar Borrowing, the Borrower shall have failed to
deliver a Notice of Conversion/ Continuation, then, unless such Borrowing is
repaid as provided herein, the Borrower shall be deemed to have elected to
convert such Borrowing to a Base Rate Borrowing.  No Borrowing may be converted 

 

29

 

into, or continued as, a
Eurodollar Borrowing if a Default or an Event of Default exists, unless the
Administrative Agent and each of the Lenders shall have otherwise consented in
writing.   No conversion of any
Eurodollar Loans shall be permitted except on the last day of the Interest
Period in respect thereof.

 

(d)                                 Upon receipt of any Notice of
Conversion/Continuation, the Administrative Agent shall promptly notify each
Lender of the details thereof and of such Lender’s portion of each resulting
Borrowing.

 

Section 2.7.                                Optional Reduction and
Termination of Commitments.

 

(a)                                  Unless previously terminated, all Revolving
Commitments, Swingline Commitments and LC Commitments shall terminate on the
Revolving Commitment Termination Date.

 

(b)                                 Upon at least three (3) Business Days’
prior written notice (or telephonic notice promptly confirmed in writing) to
the Administrative Agent (which notice shall be irrevocable), the Borrower may
reduce the Aggregate Revolving Commitments in part or terminate the Aggregate
Revolving Commitments in whole; provided, that (i) any partial reduction
shall apply to reduce proportionately and permanently the Revolving Commitment
of each Lender, (ii) any partial reduction pursuant to this Section 2.7
shall be in an amount of at least $1,000,000 and any larger multiple of
$500,000, and (iii) no such reduction shall be permitted which would
reduce the Aggregate Revolving Commitment Amount to an amount less than the
outstanding Revolving Credit Exposures of all Lenders.  Any such reduction in the Aggregate Revolving
Commitment Amount below the sum of the principal amount of the Swingline
Commitment and the LC Commitment shall result in a proportionate reduction
(rounded to the next lowest integral multiple of $100,000) in the Swingline
Commitment and the LC Commitment.

 

Section 2.8.                                Repayment of Loans.

 

(a)                                  The outstanding principal amount of all
Revolving Loans shall be due and payable (together with accrued and unpaid
interest thereon) on the Revolving Commitment Termination Date.

 

(b)                                 The
principal amount of each Swingline Borrowing shall be due and payable (together
with accrued and unpaid interest thereon) on the earlier of (i) the last
day of the Interest Period applicable to such Borrowing and (ii) the
Revolving Commitment Termination Date.

 

Section 2.9.                                Evidence of Indebtedness.  (a) 
Each Lender shall maintain in accordance with its usual practice appropriate
records evidencing the Indebtedness of the Borrower to such Lender resulting
from each Loan made by such Lender from time to time, including the amounts of
principal and interest payable thereon and paid to such Lender from time to
time under this Agreement.  The
Administrative Agent shall maintain appropriate
records in which shall be recorded (i) the
Revolving Commitment of each Lender, (ii) the amount of each Loan made
hereunder by each Lender, the Class and Type thereof and the Interest
Period applicable thereto, (iii) the date of each continuation thereof
pursuant to Section 2.6, (iv) the date 

 

30

 

of each conversion of all or
a portion thereof to another Type pursuant to Section 2.6, (v) the
date and amount of any principal or interest due and payable or to become due
and payable from the Borrower to each Lender hereunder in respect of such Loans
and (vi) both the date and amount of any sum received by the
Administrative Agent hereunder from the Borrower in respect of the Loans and
each Lender’s Pro Rata Share thereof. 
The entries made in such records shall be prima facie evidence
of the existence and amounts of the obligations of the Borrower therein
recorded; provided, that the failure or delay of any Lender or the
Administrative Agent in maintaining or making entries into any such record or
any error therein shall not in any manner affect the obligation of the Borrower
to repay the Loans (both principal and unpaid accrued interest) of such Lender
in accordance with the terms of this Agreement.

 

(b)                                 At the request of any Lender (including the
Swingline Lender) at any time, the Borrower agrees that it will execute and
deliver to such Lender a Revolving Credit Note and, in the case of the
Swingline Lender only, a Swingline Note, payable to the order of such Lender.

 

Section 2.10.                         Optional
Prepayments.  The Borrower shall
have the right at any time and from time to time to prepay any Borrowing, in
whole or in part, without premium or penalty, by giving irrevocable written
notice (or telephonic notice promptly confirmed in writing) to the
Administrative Agent no later than (i) in the case of prepayment of any
Eurodollar Borrowing, 11:00 a.m. (New York time)  not less than two (2) Business Days
prior to any such prepayment, (ii) in the case of any prepayment of any
Base Rate Borrowing, not less than one Business Day prior to the date of such
prepayment, and (iii) in the case of Swingline Borrowings, prior to 11:00 a.m.
(New York time) on the date of such prepayment. 
Each such notice shall be irrevocable and shall specify the proposed
date of such prepayment and the principal amount of each Borrowing or portion
thereof to be prepaid.  Upon receipt of
any such notice, the Administrative Agent shall promptly notify each affected
Lender of the contents thereof and of such Lender’s Pro Rata Share of any such
prepayment.  If such notice is given, the
aggregate amount specified in such notice shall be due and payable on the date
designated in such notice, together with accrued interest to such date on the
amount so prepaid in accordance with Section 2.12(d); provided,
that if a Eurodollar Borrowing is prepaid on a date other than the last day of
an Interest Period applicable thereto, the Borrower shall also pay all amounts
required pursuant to Section 2.18. 
Each partial prepayment of any Loan (other than a Swingline Loan) shall
be in an amount that would be permitted in the case of an advance of a
Revolving Borrowing of the same Type pursuant to Section 2.2 or in
the case of a Swingline Loan pursuant to Section 2.4.  Each prepayment of a Borrowing shall be
applied ratably to the Loans comprising such Borrowing.

 

Section 2.11.                         Mandatory Prepayments.

 

(a)                                  Promptly upon, and in any event within two
Business Days of, receipt by the Borrower or any of its Subsidiaries of
proceeds of any sale or disposition by the Borrower or such Subsidiary of any
of its assets (excluding (i) sales of inventory in the ordinary course of
business, (ii) sales of obsolete equipment, (iii) so long as no Event
of Default has occurred and is continuing, other sales of assets of the
Borrower or any of its Subsidiaries with an aggregate book value not to exceed
$1,000,000) and (iv) sale of the stock or assets of Detroit Stoker), the
Borrower shall prepay the Loans in an amount equal to all such proceeds, net of
commissions and other reasonable and customary transaction costs, fees and
expenses properly attributable to 

 

31

 

such transaction and payable
by such Borrower in connection therewith (in each case, paid to
non-Affiliates).  Any such prepayment
shall be applied in accordance with paragraph (c) below.

 

(b)                                 If the Borrower or any of its Subsidiaries
issues any debt or equity securities (other than Indebtedness permitted under Section 7.1,
or equity securities issued by a Subsidiary of the Borrower to the Borrower or
another Subsidiary) then no later than the Business Day following the date of
receipt of the proceeds thereof, Borrower shall prepay the Loans in an amount
equal to all such proceeds, net of underwriting discounts and commissions and
other reasonable costs paid to non-Affiliates in connection therewith.  Any such prepayment shall be applied in
accordance with Section 2.11(c).

 

(c)                                  Subject to Section 8.2, any prepayments made by the Borrower
pursuant to Sections 2.11(a) or (b) above shall be
applied as follows: first, to Administrative Agent’s fees and
reimbursable expenses then due and payable pursuant to any of the Loan
Documents; second, to all other fees and reimbursable expenses of the
Lenders and the Issuing Bank then due and payable pursuant to any of the Loan
Documents, pro rata to the Lenders and the Issuing Bank based on their
respective Pro Rata Shares of such fees and expenses; third, to
interests then due and payable on the Loans made to Borrower, pro rata to the
Lenders based on their respective Revolving Commitments; fourth, to the
principal balance of the Swingline Loans, until the same shall have been paid
in full, to the Swingline Lender; fifth, to the principal balance of the
Revolving Loans, until the same shall have been paid in full, pro rata to the
Lenders based on their respective Revolving Commitments and sixth, to
cash collateralize the Letters of Credit in accordance with Section 2.21(g) in
an amount in cash equal to the LC Exposure as of such date plus any accrued and
unpaid fees thereon.  The Revolving
Commitments of the Lenders shall not be permanently reduced by the amount of
any prepayments made pursuant to clauses fourth and fifth above, unless an
Event of Default has occurred and is continuing at the time of the event giving
rise to such prepayment and the Required Revolving Lenders elect to reduce
Commitments.

 

(d)                                 If at any time the Revolving Credit Exposure
of all Lenders exceeds the Aggregate Revolving Commitment Amount, as reduced
pursuant to Section 2.7 or otherwise, the Borrower shall
immediately repay Swingline Loans and Revolving Loans in an amount equal to
such excess, together with all accrued and unpaid interest on such excess
amount and any amounts due under Section 2.18.  Each prepayment shall be applied first to the
Swingline Loans to the full extent thereof, second to the Base Rate Loans to
the full extent thereof, and finally to Eurodollar Loans to the full extent
thereof.  If after giving effect to
prepayment of all Swingline Loans and Revolving Loans, the Revolving Credit
Exposure of all Lenders exceeds the Aggregate Revolving Commitment Amount, the
Borrower shall deposit in an account with the Administrative Agent, in the name
of the Administrative Agent and for the benefit of the Issuing Bank and the
Lenders, an amount in cash equal to such excess plus any accrued and unpaid
fees thereon to be held as collateral for the LC Exposure.  Such account shall be administered in
accordance with Section 2.21(g) hereof.

 

Section 2.12.                         Interest on Loans.

 

(a)                                  The Borrower shall pay interest on each Base
Rate Loan at the Base Rate in effect from time to time and on each Eurodollar
Loan at the Adjusted LIBO Rate for the 

 

32

 

applicable Interest Period
in effect for such Loan, plus, in each
case, the Applicable Margin in effect from time to time.

 

(b)                                 The Borrower shall pay interest on each
Swingline Loan at the Swingline Rate in effect from time to time.

 

(c)                                  While an Event of Default exists or after
acceleration, and upon the delivery of written notice to the Borrower by the
Administrative Agent at the option of the Required Lenders (provided that such
notice shall not be required after acceleration or upon the occurrence of an
Event of Default under Section 8.1(g), (h) or (i)), the
Borrower shall pay interest (“Default Interest”) with respect to all
Eurodollar Loans at the rate otherwise applicable for the then-current Interest
Period plus an additional 2% per annum until
the last day of such Interest Period, and thereafter, and with respect to all
Base Rate Loans (including all Swingline Loans) and
all other Obligations hereunder (other than Loans), at an all-in rate in effect
for Base Rate Loans, plus an
additional 2% per annum.

 

(d)                                 Interest on the principal amount of all Loans
shall accrue from and including the date such Loans are made to but excluding
the date of any repayment thereof. 
Interest on all outstanding Base Rate Loans shall be payable quarterly
in arrears on the last day of each March, June, September and December and
on the Revolving Commitment Termination Date. 
Interest on all outstanding Eurodollar Loans shall be payable on the
last day of each Interest Period applicable thereto, and, in the case of any
Eurodollar Loans having an Interest Period in excess of three months or 90
days, respectively, on each day which occurs every three months or 90 days, as
the case may be, after the initial date of such Interest Period, and on the
Revolving Commitment Termination Date. 
Interest on each Swingline Loan shall be payable on the maturity date of
such Loan, which shall be the last day of the Interest Period applicable
thereto, and on the Revolving Commitment Termination Date.  Interest on any Loan which is converted into
a Loan of another Type or which is repaid or prepaid shall be payable on the date
of such conversion or on the date of any such repayment or prepayment (on the
amount repaid or prepaid) thereof.  All
Default Interest shall be payable on demand.

 

(e)                                  The Administrative Agent shall determine each
interest rate applicable to the Loans hereunder and shall promptly notify the
Borrower and the Lenders of such rate in writing (or by telephone, promptly
confirmed in writing).  Any such
determination shall be conclusive and binding for all purposes, absent manifest
error.

 

Section 2.13.                         Fees.

 

(a)                                  The Borrower shall pay to the Administrative
Agent for its own account fees in the amounts and at the times previously
agreed upon in writing by the Borrower and the Administrative Agent.

 

(b)                                 The Borrower agrees to pay to the
Administrative Agent for the account of each Lender a commitment fee, which
shall accrue at the Applicable Percentage per annum (determined daily in
accordance with Schedule I) on the daily amount of the unused
Revolving Commitment of such Lender during the Availability Period.  For purposes of computing commitment fees
with respect to the Revolving Commitments, the Revolving Commitment of 

 

33

 

each Lender shall be deemed
used to the extent of the outstanding Revolving Loans and LC Exposure, but not
Swingline Exposure, of such Lender.

 

(c)                                  The Borrower agrees to pay (i) to the
Administrative Agent, for the account of each Lender, a letter of credit fee
with respect to its participation in each Letter of Credit, which shall accrue
at a rate per annum equal to the Applicable Margin for Eurodollar Loans then in
effect on the average daily amount of such Lender’s LC Exposure attributable to
such Letter of Credit during the period from and including the date of issuance
of such Letter of Credit to but excluding the date on which such Letter of
Credit expires or is drawn in full (including without limitation any LC
Exposure that remains outstanding after the Revolving Commitment Termination
Date) and (ii) to the Issuing Bank for its own account a fronting fee,
which shall accrue at the rate of 0.125% per annum on the average daily amount
of the LC Exposure (excluding any portion thereof attributable to unreimbursed
LC Disbursements) during the Availability Period (or until the date that such
Letter of Credit is irrevocably cancelled, whichever is later), as well as the
Issuing Bank’s standard fees with respect to issuance, amendment, renewal or
extension of any Letter of Credit or processing of drawings thereunder.  Notwithstanding the foregoing, if the
Required Lenders elect to increase the interest rate on the Loans to the
Default Interest pursuant to Section 2.12(c), the rate per annum
used to calculate the letter of credit fee pursuant to clause (i) above
shall automatically be increased by an additional 2% per annum.

 

(d)                                 The Borrower shall pay to the Administrative
Agent, for the ratable benefit of each Lender, the upfront fee previously
agreed upon by the Borrower and the Administrative Agent, which shall be due
and payable on the Closing Date.

 

(e)                                  Accrued fees under paragraphs (b) and (c) above
shall be payable quarterly in arrears on the last day of each March, June, September and
December, commencing on September 30, 2005 and on the Revolving Commitment
Termination Date (and if later, the date the Loans and LC Exposure shall be
repaid in their entirety); provided  further, that any such fees
accruing after the Revolving Commitment Termination Date shall be payable on
demand.

 

Section 2.14.                         Computation of Interest and Fees.

 

All
computations of interest and fees hereunder shall be made on the basis of a
year of 360 days for the actual number of days (including the first day
but excluding the last day) occurring in the period for which such interest or
fees are payable (to the extent computed on the basis of days elapsed).  Each determination by the Administrative
Agent of an interest amount or fee hereunder shall be made in good faith and,
except for manifest error, shall be final, conclusive and binding for all
purposes.

 

Section 2.15.                         Inability to Determine Interest
Rates.  If prior to the commencement of any Interest
Period for any Eurodollar Borrowing,

 

(i)                                     the Administrative Agent shall have
determined in good faith (which determination shall be conclusive and binding
upon the Borrower) that, by reason of circumstances affecting the relevant
interbank market, adequate means do not exist for ascertaining LIBOR for such
Interest Period, or

 

34

 

(ii)                                  the Administrative Agent shall have received
notice from the Required Lenders that such Lenders have determined that the
Adjusted LIBO Rate does not adequately and fairly reflect the cost to such
Lenders (or Lender, as the case may be) of making, funding or maintaining their
(or its, as the case may be)  Eurodollar
Loans for such Interest Period (such notice to set forth such determination in
reasonable detail)

 

the
Administrative Agent shall give written notice (or telephonic notice, promptly
confirmed in writing) to the Borrower and to the Lenders as soon as practicable
thereafter, setting forth such determination in reasonable detail.  In the case of Eurodollar Loans, until the
Administrative Agent shall notify the Borrower and the Lenders that the circumstances
giving rise to such notice no longer exist, (i) the obligations of the
Lenders to make Eurodollar Revolving Loans or to continue or convert
outstanding Loans as or into Eurodollar Loans shall be suspended and (ii) all
such affected Loans shall be converted into Base Rate Loans on the last day of
the then current Interest Period applicable thereto unless the Borrower prepays
such Loans in accordance with this Agreement. 
Unless the Borrower notifies the Administrative Agent at least one
Business Day before the date of any Eurodollar Revolving Borrowing for which a
Notice of Revolving Borrowing has previously been given that it elects not to
borrow on such date, then such Revolving Borrowing shall be made as a Base Rate
Borrowing.

 

Section 2.16.                         Illegality. 
If any Change in Law
shall make it unlawful or impossible for any Lender to make, maintain or fund
any Eurodollar Loan and such Lender shall so notify the Administrative Agent
thereof in reasonable detail, the Administrative Agent shall promptly give
notice thereof in reasonable detail to the Borrower and the other Lenders,
whereupon until such Lender notifies the Administrative Agent and the Borrower
that the circumstances giving rise to such suspension no longer exist, the
obligation of such Lender to make Eurodollar Revolving Loans, or to continue or
convert outstanding Loans as or into Eurodollar Loans, shall be suspended.  In the case of the making of a Eurodollar
Revolving Borrowing, such Lender’s Revolving Loan shall be made as a Base Rate
Loan as part of the same Revolving Borrowing for the same Interest Period and
if the affected Eurodollar Loan is then outstanding, such Loan shall be
converted to a Base Rate Loan either (i) on the last day of the then
current Interest Period applicable to such Eurodollar Loan if such Lender may
lawfully continue to maintain such Loan to such date or (ii) immediately
if such Lender shall determine that it may not lawfully continue to maintain
such Eurodollar Loan to such date. 
Notwithstanding the foregoing, the affected Lender shall, prior to
giving such notice to the Administrative Agent, designate a different
Applicable Lending Office if such designation would avoid the need for giving
such notice and if such designation would not otherwise be disadvantageous to
such Lender in the good faith exercise of its discretion.

 

Section 2.17.                         Increased Costs.

 

(a)                                  If any Change in Law shall:

 

(i)                                     impose, modify or deem applicable any
reserve, special deposit or similar requirement that is not otherwise included
in the determination of the Adjusted LIBO Rate hereunder against assets of,
deposits with or for the account of, or credit extended by, any Lender (except
any such reserve requirement reflected in the Adjusted LIBO Rate) or the
Issuing Bank; or

 

35

 

(ii)                                  impose on any Lender or on the Issuing Bank
or the eurodollar interbank market any other condition affecting this Agreement
or any Eurodollar Loans made by such Lender or any Letter of Credit or any
participation therein;

 

and the result of either
of the foregoing is to increase the cost to such Lender of making, converting
into, continuing or maintaining a Eurodollar Loan or to increase the cost to
such Lender or the Issuing Bank of participating in or issuing any Letter of
Credit or to reduce the amount received or receivable by such Lender or the
Issuing Bank hereunder (whether of principal, interest or any other amount),
then the Borrower shall promptly pay, upon written notice (in reasonable
detail) from and demand by such Lender on the Borrower (with a copy of such
notice and demand to the Administrative Agent), to the Administrative Agent for
the account of such Lender, within five Business Days after the date of such
notice and demand, additional amount or amounts sufficient to compensate such
Lender or the Issuing Bank, as the case may be, for such additional costs
incurred or reduction suffered.

 

(b)                                 If any Lender or the Issuing Bank shall have
determined that on or after the date of this Agreement any Change in Law
regarding capital requirements has or would have the effect of reducing the
rate of return on such Lender’s or the Issuing Bank’s capital (or on the
capital of such Lender’s or the Issuing Bank’s parent corporation) as a
consequence of its obligations hereunder or under or in respect of any Letter
of Credit to a level below that which such Lender or the Issuing Bank or such
Lender’s or the Issuing Bank’s parent corporation could have achieved but for
such Change in Law (taking into consideration such Lender’s or the Issuing Bank’s
policies or the policies of such Lender’s or the Issuing Bank’s parent
corporation with respect to capital adequacy) then, from time to time, within
five (5) Business Days after receipt by the Borrower of written demand by
such Lender (with a copy thereof to the Administrative Agent), the Borrower
shall pay to such Lender such additional amounts as will compensate such Lender
or the Issuing Bank or such Lender’s or the Issuing Bank’s parent corporation
for any such reduction suffered.

 

(c)                                  A certificate of a Lender or the Issuing Bank
setting forth the amount or amounts necessary to compensate such Lender or the
Issuing Bank or such Lender’s or the Issuing Bank’s parent corporation, as the
case may be, specified in paragraph (a) or (b) of this Section 2.17
shall be delivered to the Borrower (with a copy to the Administrative Agent)
and shall be conclusive, absent manifest error. 
The Borrower shall pay any such Lender or the Issuing Bank, as the case
may be, such amount or amounts within 10 days after receipt thereof.

 

(d)                                 Failure or delay on the part of any Lender or
the Issuing Bank to demand compensation pursuant to this Section 2.17
shall not constitute a waiver of such Lender’s or the Issuing Bank’s right to
demand such compensation.

 

Section 2.18.                         Funding Indemnity.  In
the event of (a) the payment of any principal of a Eurodollar Loan other
than on the last day of the Interest Period applicable thereto (including as a
result of an Event of Default), (b) the conversion or continuation of a
Eurodollar Loan other than on the last day of the Interest Period applicable
thereto or (c) the failure by the Borrower to borrow, prepay, convert or
continue any Eurodollar Loan on the date specified in any applicable notice
(regardless of whether such notice is withdrawn or revoked), then, in any such
event, the Borrower shall compensate each Lender, within five (5) Business
Days after 

 

36

 

written demand from such
Lender, for any loss, cost or expense attributable to such event.  In the case of a Eurodollar Loan, such loss,
cost or expense shall be deemed to include an amount determined by such Lender
to be the excess, if any, of (A) the amount of interest that would have
accrued on the principal amount of such Eurodollar Loan if such event had not
occurred at the Adjusted LIBO Rate applicable to such Eurodollar Loan for the
period from the date of such event to the last day of the then current Interest
Period therefor (or in the case of a failure to borrow, convert or continue, for
the period that would have been the Interest Period for such Eurodollar Loan)
over (B) the amount of interest that would accrue on the principal amount
of such Eurodollar Loan for the same period if the Adjusted LIBO Rate were set
on the date such Eurodollar Loan was prepaid or converted or the date on which
the Borrower failed to borrow, convert or continue such Eurodollar Loan.  A certificate as to any additional amount
payable under this Section 2.18 submitted to the Borrower by any
Lender (with a copy to the Administrative Agent) shall be conclusive, absent
manifest error.

 

Section 2.19.                         Taxes.

 

(a)                                  Any and all payments by or on account of any
obligation of the Borrower hereunder shall be made free and clear of and
without deduction for any Indemnified Taxes or Other Taxes; provided,
that if the Borrower shall be required to deduct any Indemnified Taxes or Other
Taxes from such payments, then (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section 2.19) the
Administrative Agent, any Lender or the Issuing Bank (as the case may be) shall
receive an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions and (iii) the
Borrower shall pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.

 

(b)                                 In addition, the Borrower shall pay any Other
Taxes to the relevant Governmental Authority in accordance with applicable law.

 

(c)                                  The Borrower shall indemnify the
Administrative Agent, each Lender and the Issuing Bank, within five (5) Business
Days after written demand therefor, for the full amount of any Indemnified
Taxes or Other Taxes paid by the Administrative Agent, such Lender or the
Issuing Bank, as the case may be, on or with respect to any payment by or on
account of any obligation of the Borrower hereunder (including Indemnified
Taxes or Other Taxes imposed or asserted on or attributable to amounts payable
under this Section 2.19) and any penalties, interest and reasonable
expenses arising therefrom or with respect thereto, whether or not such
Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted
by the relevant Governmental Authority. 
A certificate as to the amount of such payment or liability delivered to
the Borrower by a Lender or the Issuing Bank, or by the Administrative Agent on
its own behalf or on behalf of a Lender or the Issuing Bank, shall be conclusive
absent manifest error.

 

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

 

37

 

(e)                                  Any Foreign Lender that is entitled to an
exemption from or reduction of withholding tax under the Code or any treaty to
which the United States is a party, with respect to payments under this
Agreement shall deliver to the Borrower (with a copy to the Administrative
Agent), at the time or times prescribed by applicable law, such properly
completed and executed documentation prescribed by applicable law or reasonably
requested by the Borrower as will permit such payments to be made without
withholding or at a reduced rate. 
Without limiting the generality of the foregoing, each Foreign Lender
agrees that it will deliver to the Administrative Agent and the Borrower (or in
the case of a Participant, to the Lender from which the related participation
shall have been purchased), as appropriate, two (2) duly completed copies
of (i) Internal Revenue Service Form W-8 ECI, or any successor form
thereto, certifying that the payments received from the Borrower hereunder are
effectively connected with such Foreign Lender’s conduct of a trade or business
in the United States; or (ii) Internal Revenue Service Form W-8 BEN,
or any successor form thereto, certifying that such Foreign Lender is entitled
to benefits under an income tax treaty to which the United States is a party
which reduces the rate of withholding tax on payments of interest; or (iii) Internal
Revenue Service Form W-8 BEN, or any successor form prescribed by the
Internal Revenue Service, together with a certificate (A) establishing
that the payment to the Foreign Lender qualifies as “portfolio interest” exempt
from U.S. withholding tax under Code section 871(h) or 881(c), and (B) stating
that (1) the Foreign Lender is not a bank for purposes of Code section 881(c)(3)(A),
or the obligation of the Borrower hereunder is not, with respect to such
Foreign Lender, a loan agreement entered into in the ordinary course of its
trade or business, within the meaning of that section; (2) the Foreign
Lender is not a 10% shareholder of the Borrower within the meaning of Code section 871(h)(3) or
881(c)(3)(B); and (3) the Foreign Lender is not a controlled foreign
corporation that is related to the Borrower within the meaning of Code section 881(c)(3)(C);
or (iv) such other Internal Revenue Service forms as may be applicable to
the Foreign Lender, including Forms W-8 IMY or W-8 EXP.  Each such Foreign Lender shall deliver to the
Borrower and the Administrative Agent such forms on or before the date that it
becomes a party to this Agreement (or in the case of a Participant, on or
before the date such Participant purchases the related participation).  In addition, each such Foreign Lender shall
deliver such forms promptly upon the obsolescence or invalidity of any form
previously delivered by such Foreign Lender. 
Each such Foreign Lender shall promptly notify the Borrower and the
Administrative Agent at any time that it determines that it is no longer in a
position to provide any previously delivered certificate to the Borrower (or
any other form of certification adopted by the Internal Revenue Service for
such purpose).

 

Section 2.20.                         Payments Generally; Pro Rata
Treatment; Sharing of Set-offs.

 

(a)                                  The Borrower shall make each payment required
to be made by it hereunder (whether of principal, interest, fees or
reimbursement of LC Disbursements, or of amounts payable under Sections 2.17,
2.18 or 2.19, or otherwise) prior to 12:00 noon (New York
time) on the date when due, in
immediately available funds, free and clear of any defenses, rights of set-off,
counterclaim, or withholding or deduction of taxes.  Any amounts received after such time on any
date may, in the discretion of the Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating
interest thereon.  All such payments
shall be made to the Administrative Agent at the Payment Office, except
payments to be made directly to the Issuing Bank or Swingline Lender as
expressly provided herein and except that payments pursuant to Sections 2.17,
2.18 and 2.19 and 10.3 shall be made 

 

38

 

directly to the Persons
entitled thereto.  The Administrative
Agent shall distribute any such payments received by it for the account of any
other Person to the appropriate recipient promptly following receipt
thereof.  If any payment hereunder shall
be due on a day that is not a Business Day, the date for payment shall be
extended to the next succeeding Business Day, and, in the case of any payment
accruing interest, interest thereon shall be made payable for the period of
such extension.  All payments hereunder
shall be made in Dollars.

 

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

 

(c)                                  If any Lender shall, by exercising any right
of set-off or counterclaim or otherwise, obtain payment in respect of any
principal of or interest on any of its Revolving Loans or participations in LC
Disbursements or Swingline Loans that would result in such Lender receiving
payment of a greater proportion of the aggregate amount of its Revolving Loans
and participations in LC Disbursements and Swingline Loans and accrued interest
thereon than the proportion received by any other Lender, then the Lender receiving
such greater proportion shall purchase (for cash at face value) participations
in the Revolving Loans and participations in LC Disbursements and Swingline
Loans of other Lenders to the extent necessary so that the benefit of all such
payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective
Revolving Loans and participations in LC Disbursements and Swingline Loans; provided,
that (i) if any such participations are purchased and all or any portion
of the payment giving rise thereto is recovered, such participations shall be
rescinded and the purchase price restored to the extent of such recovery,
without interest, and (ii) the provisions of this paragraph shall not be construed
to apply to any payment made by the Borrower pursuant to and in accordance with
the express terms of this Agreement or any payment obtained by a Lender as
consideration for the assignment of or sale of a participation in any of its
Loans or participations in LC Disbursements or Swingline Loans to any assignee
or participant, other than to the Borrower or any Subsidiary or Affiliate
thereof (as to which the provisions of this paragraph shall apply).  The Borrower consents to the foregoing and
agrees, to the extent it may effectively do so under applicable law, that any
Lender acquiring a participation pursuant to the foregoing arrangements may
exercise against the Borrower rights of set-off and counterclaim with respect
to such participation as fully as if such Lender were a direct creditor of the
Borrower in the amount of such participation.

 

(d)                                 Unless the Administrative Agent shall have
received notice from the Borrower prior to the date on which any payment is due
to the Administrative Agent for the account of the Lenders or the Issuing Bank
hereunder that the Borrower will not make such payment, the Administrative
Agent may assume that the Borrower has made such payment on such date in
accordance herewith and may, in reliance upon such assumption, distribute to
the Lenders or the Issuing Bank, as the case may be, the amount or amounts
due.  In such event, if the Borrower has
not in fact made such payment, then each of the Lenders or the Issuing Bank, 

 

39

 

as the case may be,
severally agrees to repay to the Administrative Agent forthwith on demand the
amount so distributed to such Lender or Issuing Bank with interest thereon, for
each day from and including the date such amount is distributed to it to but
excluding the date of payment to the Administrative Agent, at the greater of
the Federal Funds Effective Rate and a rate determined by the Administrative
Agent in accordance with banking industry rules on interbank compensation.

 

(e)                                  If
any Lender shall fail to make any payment required to be made by it pursuant to
Section 2.4(c), 2.20(d), 2.21(d) or (e) or
10.3(d), then the Administrative Agent may, in its discretion
(notwithstanding any contrary provision hereof), apply any amounts thereafter
received by the Administrative Agent for the account of such Lender to satisfy
such Lender’s obligations under such Sections until all such unsatisfied
obligations are fully paid.

 

(f)                                    If
a Business Sweep Account Agreement is in effect, payment of Swingline Advances
shall also be made in accordance with the terms of the Business Sweep Account
Agreement.

 

Section 2.21.                         Letters of Credit.

 

(a)                                  During the Availability Period, the Issuing
Bank, in reliance upon the agreements of the other Lenders pursuant to Section 2.21(d),
agrees to issue, at the request of the Borrower, Letters of Credit for the
account of the Borrower on the terms and conditions hereinafter set forth; provided,
that (i) each Letter of Credit shall expire on the earlier of (A) the
date one year after the date of issuance of such Letter of Credit (or in the
case of any renewal or extension thereof, one year after such renewal or
extension) and (B) the date that is five (5) Business Days prior to
the Revolving Commitment Termination Date; (ii) each Letter of Credit
shall be in a stated amount of at least $20,000; and (iii) the Borrower
may not request any Letter of Credit, if, after giving effect to such issuance (A) the
aggregate LC Exposure would exceed the LC Commitment or (B) the aggregate
Revolving Credit Exposure of all Lenders would exceed the Aggregate Revolving
Commitment Amount.  Each Lender shall be deemed to,
and hereby irrevocably and unconditionally agrees to, purchase from the Issuing
Bank without recourse a participation in each Letter of Credit equal to such
Lender’s Pro Rata Share of the aggregate amount available to be drawn under
such Letter of Credit (i) on the Closing Date with respect to all Existing
Letters of Credit and (ii) on the date of issuance with respect to all
other Letters of Credit.  Each issuance
of a Letter of Credit shall be deemed to utilize the Revolving Commitment of
each Lender by an amount equal to the amount of such participation.

 

(b)                                 To request the issuance of a Letter of Credit
(or any amendment, renewal or extension of an outstanding Letter of Credit),
the Borrower shall give the Issuing Bank and the Administrative Agent
irrevocable written notice at least three (3) Business Days prior to the
requested date of such issuance specifying the date (which shall be a Business
Day) such Letter of Credit is to be issued (or amended, extended or renewed, as
the case may be), the expiration date of such Letter of Credit, the amount of
such Letter of Credit, the name and address of the beneficiary thereof and such
other information as shall be necessary to prepare, amend, renew or extend such
Letter of Credit.  In addition to the
satisfaction of the conditions in Article III, the issuance of such
Letter of Credit (or any amendment which increases the amount of such Letter of
Credit) will be subject to the further conditions that such Letter of Credit
shall be in such form 

 

40

 

and contain such terms as
the Issuing Bank shall approve and that the Borrower shall have executed and
delivered any additional applications, agreements and instruments relating to
such Letter of Credit as the Issuing Bank shall reasonably require; provided,
that in the event of any conflict between such applications, agreements or
instruments and this Agreement, the terms of this Agreement shall control.

 

(c)                                  At least two Business Days prior to the
issuance of any Letter of Credit, the Issuing Bank will confirm with the
Administrative Agent (by telephone or in writing) that the Administrative Agent
has received such notice and if not, the Issuing Bank will provide the
Administrative Agent with a copy thereof. 
Unless the Issuing Bank has received notice from the Administrative
Agent on or before the Business Day immediately preceding the date the Issuing Bank
is to issue the requested Letter of Credit (1) directing the Issuing Bank
not to issue the Letter of Credit because such issuance is not then permitted
hereunder because of the limitations set forth in Section 2.21(a) or
that one or more conditions specified in Article III are not then
satisfied, then, subject to the terms and conditions hereof, the Issuing Bank
shall, on the requested date, issue such Letter of Credit in accordance with
the Issuing Bank’s usual and customary business practices.

 

(d)                                 The Issuing Bank shall examine all documents
purporting to represent a demand for payment under a Letter of Credit promptly
following its receipt thereof.  The
Issuing Bank shall notify the Borrower and the Administrative Agent of such
demand for payment and whether the Issuing Bank has made or will make a LC
Disbursement thereunder; provided, that any failure to give or delay in
giving such notice shall not relieve the Borrower of its obligation to
reimburse the Issuing Bank and the Lenders with respect to such LC
Disbursement.  The Borrower shall be
irrevocably and unconditionally obligated to reimburse the Issuing Bank for any
LC Disbursements paid by the Issuing Bank in respect of such drawing, without
presentment, demand or other formalities of any kind.  Unless the Borrower shall have notified the
Issuing Bank and the Administrative Agent prior to 11:00 a.m. (New
York time) on the Business Day
immediately prior to the date on which such drawing is honored that the
Borrower intends to reimburse the Issuing Bank for the amount of such drawing
in funds other than from the proceeds of Revolving Loans, the Borrower shall be
deemed to have timely given a Notice of Revolving Borrowing to the
Administrative Agent requesting the Lenders to make a Base Rate Borrowing on the date on which such drawing is honored in an exact
amount due to the Issuing Bank; provided, that for purposes solely of
such Borrowing, the conditions precedents set forth in Section 3.2
hereof shall not be applicable.  The
Administrative Agent shall notify the Lenders of such Borrowing in accordance
with Section 2.3, and each Lender shall make the proceeds of its
Base Rate Loan included in such Borrowing available to the Administrative Agent
for the account of the Issuing Bank in accordance with Section 2.5.  The proceeds of such Borrowing shall be
applied directly by the Administrative Agent to reimburse the Issuing Bank for
such LC Disbursement.

 

(e)                                  If for any reason a Base Rate Borrowing may
not be (as determined in the sole discretion of the Administrative Agent), or
is not, made in accordance with the foregoing provisions, then each Lender
(other than the Issuing Bank) shall be obligated to fund the participation that
such Lender purchased pursuant to subsection (a) in an amount equal
to its Pro Rata Share of such LC
Disbursement on and as of the date which such Base Rate Borrowing should have
occurred.  Each
Lender’s obligation to fund its participation shall be absolute and 

 

41

 

unconditional and shall not
be affected by any circumstance, including without limitation (i) any
setoff, counterclaim, recoupment, defense or other right that such Lender or
any other Person may have against the Issuing Bank or any other Person for any
reason whatsoever, (ii) the existence of a Default or an Event of Default
or the termination of the Aggregate Revolving Commitments, (iii) any
adverse change in the condition (financial or otherwise) of the Borrower or any
of its Subsidiaries, (iv) any breach of this Agreement by the Borrower or
any other Lender, (v) any amendment, renewal or extension of any Letter of
Credit or (vi) any other circumstance, happening or event whatsoever,
whether or not similar to any of the foregoing. 
On the date that such participation is required to be funded, each
Lender shall promptly transfer, in immediately available funds, the amount of
its participation to the Administrative Agent for the account of the Issuing
Bank.  Whenever, at any time after the
Issuing Bank has received from any such Lender the funds for its participation
in a LC Disbursement, the Issuing Bank (or the Administrative Agent on its
behalf) receives any payment on account thereof, the Administrative Agent or
the Issuing Bank, as the case may be, will distribute to such Lender its Pro
Rata Share of such payment; provided, that if such payment is required
to be returned for any reason to the Borrower or to a trustee, receiver,
liquidator, custodian or similar official in any bankruptcy proceeding, such
Lender will return to the Administrative Agent or the Issuing Bank any portion
thereof previously distributed by the Administrative Agent or the Issuing Bank
to it.

 

(f)                                    To the extent that any Lender shall fail to
pay any amount required to be paid pursuant to paragraph (d) below on the
due date therefor, such Lender shall pay interest to the Issuing Bank (through
the Administrative Agent) on such amount from such due date to the date such
payment is made at a rate per annum equal to the Federal Funds Rate; provided,
that if such Lender shall fail to make such payment to the Issuing Bank within
three (3) Business Days of such due date, then, retroactively to the due
date, such Lender shall be obligated to pay interest on such amount at the rate
set forth in Section 2.12(c).

 

(g)                                 If any Event of Default shall occur and be
continuing, on the Business Day that the Borrower receives notice from the
Administrative Agent or the Required Lenders demanding the deposit of cash
collateral pursuant to this paragraph, the Borrower shall deposit in an account
with the Administrative Agent, in the name of the Administrative Agent and for
the benefit of the Issuing Bank and the Lenders, an amount in cash equal to the
LC Exposure as of such date plus any accrued and unpaid fees thereon; provided,
that the obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due and payable, without
demand or notice of any kind, upon the occurrence of any Event of Default with
respect to the Borrower described in clause (g) or (h) of Section 8.1.  Such deposit shall be held by the
Administrative Agent as collateral for the payment and performance of the
obligations of the Borrower under this Agreement.  The Administrative Agent shall have exclusive
dominion and control, including the exclusive right of withdrawal, over such
account.  Borrower agrees to execute any
documents and/or certificates to effectuate the intent of this paragraph.  Other than any interest earned on the
investment of such deposits, which investments shall be made at the option and
sole discretion of the Administrative Agent and at the Borrower’s risk and
expense, such deposits shall not bear interest. 
Interest and profits, if any, on such investments shall accumulate in such
account.  Moneys in such account shall be
applied by the Administrative Agent to reimburse the Issuing Bank for LC
Disbursements for which it had not been reimbursed and to the extent so
applied, shall be held for the satisfaction of the reimbursement obligations of
the Borrower for the LC Exposure at such time or, if the maturity 

 

42

 

of the Loans has been
accelerated, with the consent of the Required Lenders, be applied to satisfy
other obligations of the Borrower under this Agreement and the other Loan
Documents.  If the Borrower is required
to provide an amount of cash collateral hereunder as a result of the occurrence
of an Event of Default, such amount (to the extent not so applied as aforesaid)
shall be returned to the Borrower within three Business Days after all Events
of Default have been cured or waived.

 

(h)                                 Promptly following the end of each calendar
quarter, the Issuing Bank shall deliver (through the Administrative Agent) to
each Lender and the Borrower a report describing the aggregate Letters of
Credit outstanding at the end of such Fiscal Quarter.  Upon the request of any Lender from time to
time, the Issuing Bank shall deliver to such Lender any other information
reasonably requested by such Lender with respect to each Letter of Credit then
outstanding.

 

(i)                                     The Borrower’s obligation to reimburse LC
Disbursements hereunder shall be absolute, unconditional and irrevocable and
shall be performed strictly in accordance with the terms of this Agreement
under all circumstances whatsoever and irrespective of any of the following
circumstances:

 

(i)                                     Any lack of validity or enforceability of any
Letter of Credit or this Agreement;

 

(ii)                                  The existence of any claim, set-off, defense
or other right which the Borrower or any Subsidiary or Affiliate of the
Borrower may have at any time against a beneficiary or any transferee of any
Letter of Credit (or any Persons or entities for whom any such beneficiary or
transferee may be acting), any Lender (including the Issuing Bank) or any other
Person, whether in connection with this Agreement or the Letter of Credit or
any document related hereto or thereto or any unrelated transaction;

 

(iii)                               Any draft or other document presented under a
Letter of Credit proving to be forged, fraudulent or invalid in any respect or
any statement therein being untrue or inaccurate in any respect;

 

(iv)                              Payment by the Issuing Bank under a Letter of
Credit against presentation of a draft or other document to the Issuing Bank
that does not comply with the terms of such Letter of Credit;

 

(v)                                 Any other event or circumstance whatsoever,
whether or not similar to any of the foregoing, that might, but for the
provisions of this Section 2.21, constitute a legal or equitable
discharge of, or provide a right of setoff against, the Borrower’s obligations
hereunder; or

 

(vi)                              The existence of a Default or an Event of
Default.

 

Neither
the Administrative Agent, the Issuing Bank, the Lenders nor any Related Party
of any of the foregoing shall have any liability or responsibility by reason of
or in connection with the issuance or transfer of any Letter of Credit or any
payment or failure to make any payment thereunder (irrespective of any of the
circumstances referred to above), or any error, omission, 

 

43

 

interruption,
loss or delay in transmission or delivery of any draft, notice or other
communication under or relating to any Letter of Credit (including any document
required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from causes beyond the control of
the Issuing Bank; provided, that the foregoing shall not be construed to
excuse the Issuing Bank from liability to the Borrower to the extent of any
actual direct damages (as opposed to special, indirect (including claims for
lost profits or other consequential damages), or punitive damages, claims in
respect of which are hereby waived by the Borrower to the extent permitted by
applicable law) suffered by the Borrower that are caused by the Issuing Bank’s
failure to exercise due care when determining whether drafts or other documents
presented under a Letter of Credit comply with the terms thereof.  The parties hereto expressly agree, that in
the absence of gross negligence or willful misconduct on the part of the
Issuing Bank (as finally determined by a court of competent jurisdiction), the
Issuing Bank shall be deemed to have exercised due care in each such
determination.  In furtherance of the
foregoing and without limiting the generality thereof, the parties agree that,
with respect to documents presented that appear on their face to be in
substantial compliance with the terms of a Letter of Credit, the Issuing Bank
may, in its sole discretion, either accept and make payment upon such documents
without responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and make payment upon such
documents if such documents are not in strict compliance with the terms of such
Letter of Credit.

 

(j)                                     Each
Letter of Credit shall be subject to the Uniform Customs and Practices for
Documentary Credits (1993 Revision), International Chamber of Commerce
Publication No. 500, as the same may be amended from time to time, and, to
the extent not inconsistent therewith, the governing law of this Agreement set
forth in Section 10.5.

 

Section 2.22.                         Increase of Commitments;
Additional Lenders.

 

(a)                                  So long as no Event of Default has occurred
and is continuing, from time to time after the Closing Date, Borrower may, upon
at least 30 days’ written notice to the Administrative Agent (who shall
promptly provide a copy of such notice to each Lender), propose to increase the
Aggregate Commitments by an amount not to exceed $50,000,000 (the amount of any
such increase, the “Additional Commitment Amount”).  Each Lender shall have the right for a period
of 15 days following receipt of such notice, to elect by written notice to the
Borrower and the Administrative Agent to increase its Revolving Commitment by a
principal amount equal to its Pro Rata Share of the Additional Commitment
Amount.  No Lender (or any successor
thereto) shall have any obligation to increase its Revolving Commitment or its
other obligations under this Agreement and the other Loan Documents, and any
decision by a Lender to increase its Revolving Commitment shall be made in its
sole discretion independently from any other Lender.

 

(b)                                 If any Lender shall not
elect to increase its Revolving Commitment pursuant to subsection (a) of
this Section 2.22, the Borrower may designate another bank or other
financial institution (which may be, but need not be, one or more of the
existing Lenders) which at the time agrees to, in the case of any such Person
that is an existing Lender, increase its Revolving Commitment and in the case
of any other such Person (an “Additional Lender”), become a party to
this Agreement; provided,
however, that any new bank or financial institution must be acceptable
to the Administrative Agent, which acceptance will not be unreasonably 

 

44

 

withheld or delayed.  The sum of the increases in the Revolving
Commitments of the existing Lenders pursuant to this subsection (b) plus
the Revolving Commitments of the Additional Lenders shall not in the aggregate
exceed the unsubscribed amount of the Additional Commitment Amount.

 

(c)                                  An
increase in the aggregate amount of the Revolving Commitments pursuant to this Section 2.22
shall become effective upon the receipt by the Administrative Agent of an
supplement or joinder in form and substance satisfactory to the Administrative
Agent executed by the Borrower and by each Additional Lender and by each other
Lender whose Revolving Commitment is to be increased, setting forth the new
Revolving Commitments of such Lenders and setting forth the agreement of each
Additional Lender to become a party to this Agreement and to be bound by all
the terms and provisions hereof, together with Notes evidencing such increase
in the Commitments, and such evidence of appropriate corporate authorization on
the part of the Borrower with respect to the increase in the Revolving
Commitments and such opinions of counsel for the Borrower with respect to the
increase in the Revolving Commitments as the Administrative Agent may
reasonably request.

 

(d)                                 Upon the acceptance of any such agreement by
the Administrative Agent, the Aggregate Revolving Commitment Amount shall
automatically be increased by the amount of the Revolving Commitments added
through such agreement and Schedule II shall automatically be
deemed amended to reflect the Revolving Commitments of all Lenders after giving
effect to the addition of such Revolving Commitments.

 

(e)                                  Upon
any increase in the aggregate amount of the Revolving Commitments pursuant to
this Section 2.22 that is not pro rata among all Lenders, (x)
within five Business Days, in the case of any Base Rate Loans then outstanding,
and at the end of the then current Interest Period with respect thereto, in the
case of any Eurodollar Loans then outstanding, the Borrower shall prepay such
Loans in their entirety and, to the extent the Borrower elects to do so and
subject to the conditions specified in Article III, the Borrower
shall reborrow Loans from the Lenders in proportion to their respective
Revolving Commitments after giving effect to such increase, until such time as
all outstanding Loans are held by the Lenders in proportion to their respective
Commitments after giving effect to such increase and (y) effective upon such
increase, the amount of the participations held by each Lender in each Letter
of Credit then outstanding shall be adjusted automatically such that, after
giving effect to such adjustments, the Lenders shall hold participations in
each such Letter of Credit in proportion to their respective Revolving
Commitments.

 

Section 2.23.                         Extension
of Revolving Commitment Termination Date. 
The Revolving Credit Termination Date shall be extended to July 18,
2010 if (i) no Event of Default has occurred and is continuing and (ii) either
(A) the holders of the Convertible Notes waive or postpone all put options
and similar rights to require redemption of the Convertible Notes until a date
no earlier than January 18, 2011, and the Borrower delivers evidence
thereof reasonably satisfactory to the Administrative Agent, or (B) the
Parent and the Borrower enter into an amendment to this Agreement, adding a
negative covenant to Article 7 to the effect that the Parent and the
Borrower will not redeem the Convertible Notes prior to January 18, 2011
except solely through the issuance of common stock of the Parent (such covenant
to survive the termination of the Credit Agreement), such covenant, amendment
and conditions thereto to be in 

 

45

 

form and substance reasonably satisfactory to the
Administrative Agent If the events set forth in clause (i) and (ii) above
have occurred, the Administrative Agent shall give prompt written notice
thereof to the Lenders.

 

ARTICLE III

CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT

 

Section 3.1.                                Conditions To Effectiveness. The obligations of the Lenders (including
the Swingline Lender) to make Loans and the obligation of the Issuing Bank to
issue any Letter of Credit hereunder shall not become effective until the date
on which each of the following conditions is satisfied (or waived in accordance
with Section 10.2).

 

(a)                                  The Administrative Agent shall have received
all fees and other amounts due and payable on or prior to the Closing Date,
including reimbursement or payment of all out-of-pocket expenses (including
reasonable fees, charges and disbursements of counsel to the Administrative
Agent) required to be reimbursed or paid by the Borrower hereunder, under any
other Loan Document and under any agreement in connection herewith or therewith
with the Administrative Agent or SunTrust Capital Markets, Inc., as
Arranger.

 

(b)                                 The Administrative Agent (or its counsel)
shall have received the following:

 

(i)                                     a counterpart of this Agreement signed by or
on behalf of each party hereto or written evidence satisfactory to the
Administrative Agent (which may include telecopy transmission of a signed
signature page of this Agreement) that such party has signed a counterpart
of this Agreement;

 

(ii)                                  duly executed Revolving Credit Notes payable
to such Lender and the Swingline Note payable to the Swingline Lender;

 

(iii)                               the
Subsidiary Guaranty Agreement duly executed by each Subsidiary of the Borrower,
other than (A) Subsidiaries that are not Material Subsidiaries of the
Borrower, so long as the Subsidiaries executing the Subsidiary Guaranty
Agreement collectively meet the Aggregate Subsidiary Threshold and (B) any
direct or indirect Subsidiary of the Borrower organized in a jurisdiction outside
the United States where the guarantee of the Obligations by such Subsidiary
would result in adverse U.S. federal income tax consequences to the Parent or
the Borrower.

 

(iv)                              the
Parent Guaranty Agreement duly executed by the Parent;

 

(v)                                 the
Security Agreement duly executed by each Loan Party, together with (A) UCC
financing statements and other applicable documents under the laws of the
jurisdictions with respect to the perfection of the Liens granted under the
Security Agreement, as requested by the Administrative Agent in order to
perfect such Liens, duly executed by the Loan Parties, (B) copies of
favorable UCC, tax, judgment and fixture lien 

 

46

 

search reports in all necessary or appropriate jurisdictions and under
all legal and trade names of the Loan Parties requested by the Lenders,
indicating that there are no prior Liens on any of the Collateral other than
Permitted Encumbrances, (C) a Perfection Certificate duly completed and
executed by the Borrower, (D) duly executed Copyright Security Agreements,
Patent Security Agreements and Trademark Security Agreements, if applicable, (E) a
certified copy of all leases of Real Estate leased in Ogden, Utah,
Jacksonville, Florida, Summerville, South Carolina, and Choctaw, Mississippi,
and (F) landlord waivers with respect to the Real Estate leased in Ogden,
Utah, Jacksonville, Florida, and Summerville, South Carolina, in form and
substance satisfactory to the Administrative Agent;

 

(vi)                              duly
executed Control Account Agreements with each bank that maintains deposit
accounts on behalf, and each securities intermediary that maintains investment
accounts, on behalf of any Loan Party on the Closing Date;

 

(vii)                           duly executed Pledge
Agreements, pursuant to which 100% of the capital stock of the Borrower and all
of its Subsidiaries (but limited to 65% of the voting capital stock and 100% of
the non-voting capital stock for any Non-U.S. Subsidiary) shall be pledged to
the Administrative Agent, together with (A) original stock certificates
evidencing the issued and outstanding shares of capital stock pledged to the
Administrative Agent pursuant to the Pledge Agreements, and (B) stock
powers or other appropriate instruments of transfer executed in blank;

 

(viii)                        the duly executed Mortgages
covering all owned Real Estate (except the Goose Creek Facility), and duly
executed counterparts of the other Real Estate Documents together with: (a) title
insurance policies for all owned Real Estate (with no exception for survey),
satisfactory in form and substance to Administrative Agent; and (b) evidence
that counterparts of such Mortgages have been recorded in all places to the
extent necessary or desirable, in the judgment of Administrative Agent, to
create a valid and enforceable first priority lien (subject to Permitted
Encumbrances) on each such Mortgaged Property in favor of Administrative Agent
for the benefit of itself and Lenders (or in favor of such other trustee as may
be required or desired under local law);

 

(ix)                                satisfactory
field examinations of all Accounts and Inventory and other personal property
requested by the Administrative Agent, in each case completed by auditors and
appraisers selected by the Administrative Agent;

 

(x)                                   environmental
database search reports on all Mortgaged Properties, dated no more than 6
months prior to the Closing Date, and the Administrative Agent shall be
reasonably satisfied with the contents thereof;

 

(xi)                                copies
of duly executed payoff letters, in form and substance satisfactory to Administrative
Agent, executed by each of the Existing Lenders or the agent thereof, together
with (a) UCC or other appropriate termination statements, or authorization
to file such UCC termination statements, in form and substance satisfactory to
Administrative Agent, releasing all liens of the Existing Lenders upon any of
the personal property of the Loan Parties, (b) cancellations and releases,
in form and substance satisfactory to the 

 

47

 

Administrative Agent, releasing all liens of the Existing Lenders upon
any of the real property of the Loan Parties, and (c) any
other releases, terminations or other documents reasonably required by the
Administrative Agent to evidence the payoff of Indebtedness owed to the Existing
Lenders;

 

(xii)                             certificates
of insurance, in form and detail acceptable to the Administrative Agent,
describing in reasonable detail the types and amounts of insurance (property
and liability) maintained by the Borrower and all Guarantors, including
insurance covering the tangible Collateral owned or leased by the Loan Parties,
in each case naming the Administrative Agent as loss payee or additional
insured, as the case may be, together with a lender’s loss payable endorsement
in form and substance satisfactory to the Administrative Agent;

 

(xiii)                          a certificate of the Secretary or Assistant
Secretary of each Loan Party in the form of Exhibit 3.01(b)(xiii),
attaching and certifying copies of its bylaws and of the resolutions of its
boards of directors, or partnership agreement or limited liability company
agreement, or comparable organizational documents and authorizations,
authorizing the execution, delivery and performance of the Loan Documents to
which it is a party and certifying the name, title and true signature of each
officer of such Loan Party executing the Loan Documents to which it is a party;

 

(xiv)                         certified
copies of the articles or certificate of incorporation, certificate of
organization or limited partnership, or other registered organizational
documents of each Loan Party, together with certificates of good standing or
existence, as may be available from the Secretary of State of the jurisdiction
of organization of such Loan Party and each other jurisdiction where such Loan
Party is required to be qualified to do business as a foreign corporation;

 

(xv)                            a
favorable written opinion of counsel to the Loan Parties, including opinions in
respect of the laws of each state where such entities were organized, where any
real property Collateral is located, and of each country where the Capital
Stock of any Non-U.S. Subsidiary is being pledged, addressed to the
Administrative Agent and each of the Lenders, and covering such matters
relating to the Loan Parties, the Loan Documents and the transactions
contemplated therein as the Administrative Agent or the Required Lenders shall
reasonably request;

 

(xvi)                         a certificate in the form of Exhibit 3.01(b)(xvi),
dated the Closing Date and signed by a Responsible Officer, certifying that (x)
no Default or Event of Default exists, (y) all representations and warranties
of each Loan Party set forth in the Loan Documents are true and correct and (z)
since the date of the financial statements of the Borrower described in Section 4.4,
there shall have been no change which has had or could reasonably be expected
to have a Material Adverse Effect;

 

(xvii)                      certified copies of all consents, approvals,
authorizations, registrations and filings and orders required or advisable to
be made or obtained under any Requirement of Law, or by any Contractual
Obligation of each Loan Party, in connection with the execution, delivery,
performance, validity and enforceability of the Loan Documents or 

 

48

 

any of the transactions contemplated thereby,
and such consents, approvals, authorizations, registrations, filings and orders
shall be in full force and effect and all applicable waiting periods shall have
expired, and no investigation or inquiry by any governmental authority regarding
the Credit Facility or any transaction being financed with the proceeds thereof
shall be ongoing;

 

(xviii)                   copies of (A) the internally prepared
quarterly financial statements of the Parent and its Subsidiaries on a
consolidated and consolidating basis for the Fiscal Quarter ending on March 31,
2005, and (B) the audited consolidated and unaudited consolidating
financial statements for the Parent and its Subsidiaries for the Fiscal Years
ending December 31, 2002, 2003 and 2004;

 

(xix)                           a duly completed and executed certificate of
the type described in Section 5.1(f) including calculations of
the financial covenants set forth in Article VI hereof as of March 31,
2005; and

 

(xx)                              certified
copies of all agreements, indentures or notes governing the terms of any
Material Indebtedness and all other material agreements, documents and
instruments to which any Loan Party or any of its assets are bound.

 

Section 3.2.                                Each Credit Event.  The obligation of each Lender
to make a Loan on the occasion of any Borrowing and of the Issuing Bank to
issue, amend, renew or extend any Letter of Credit is subject to the
satisfaction of the following conditions:

 

(a)                                  at the time of and immediately after giving
effect to such Borrowing or the issuance, amendment, renewal or extension of
such Letter of Credit, as applicable, no Default or Event of Default shall
exist;

 

(b)                                 at the time of and immediately after giving
effect to such Borrowing or the issuance, amendment, renewal or extension of
such Letter of Credit, as applicable, all representations and warranties of
each Loan Party set forth in the Loan Documents shall be true and correct in
all material respects on and as of the date of such Borrowing or the date of
issuance, amendment, extension or renewal of such Letter of Credit, in each
case before and after giving effect thereto;

 

(c)                                  since the date of the financial statements of
the Parent described in Section 4.4, there shall have been no
change which has had or would reasonably be expected to have a Material Adverse
Effect;

 

(d)                                 the Borrower shall have delivered the
required Notice of Borrowing; and

 

(e)                                  the Administrative Agent shall have received
such other documents, certificates, information or legal opinions as the
Administrative Agent or the Required Lenders may reasonably request, all in
form and substance reasonably satisfactory to the Administrative Agent or the
Required Lenders.

 

49

 

Each
Borrowing and each issuance, amendment, extension or renewal of any Letter of
Credit shall be deemed to constitute a representation and warranty by the
Borrower on the date thereof as to the matters specified in paragraphs (a), (b) and
(c) of this Section 3.2.

 

Section 3.3.                                Delivery of Documents.  All
of the Loan Documents, certificates, legal opinions and other documents and
papers referred to in this Article III, unless otherwise specified,
shall be delivered to the Administrative Agent 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 satisfactory in all
respects to the Administrative Agent.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

 

The
Parent and the Borrower each represent and warrant to the Administrative Agent
and each Lender as follows:

 

Section 4.1.                                Existence; Power.  The
Parent, the Borrower and each of their Subsidiaries (i) is duly organized,
validly existing and in good standing as a corporation, partnership or limited
liability company under the laws of the jurisdiction of its organization, (ii) has
all requisite power and authority to carry on its business as now conducted,
and (iii) is duly qualified to do business, and is in good standing, in
each jurisdiction where such qualification is required, except where a failure
to be so qualified would not reasonably be expected to result in a Material
Adverse Effect.

 

Section 4.2.                                Organizational Power;
Authorization.  The execution, delivery and performance by
each Loan Party of the Loan Documents to which it is a party are within such
Loan Party’s organizational powers and have been duly authorized by all
necessary organizational, and if required, shareholder, partner or member,
action.  This Agreement has been duly
executed and delivered by each of the Parent and the Borrower, and constitutes, and each other Loan Document to which any Loan
Party is a party, when executed and delivered by such Loan Party, will
constitute, valid and binding obligations of the Parent, the Borrower or such
Loan Party (as the case may be), enforceable against it in accordance with
their respective terms, except as may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, or similar laws affecting the
enforcement of creditors’ rights generally and by general principles of equity.

 

Section 4.3.                                Governmental Approvals; No
Conflicts.  The execution, delivery and performance by
each of the Parent and the Borrower of this Agreement, and by each Loan Party
of the other Loan Documents to which it is a party (a) do not require any
consent or approval of, registration or filing with, or any action by, any
Governmental Authority, except those as have been obtained or made and are in
full force and effect, (b) will not violate any Requirements of Law
applicable to the Parent or any of its Subsidiaries or any judgment, order or
ruling of any Governmental Authority, (c) will not violate or result in a
default under any indenture, material agreement or other material instrument
binding on the Parent or any of its Subsidiaries or any of its assets or give
rise to a right thereunder to require any payment to be made by the Parent or
the Borrower or any of its Subsidiaries and (d) will not result in the 

 

50

 

creation or imposition of
any Lien on any asset of the Parent or any of its Subsidiaries, except Liens
(if any) created under the Loan Documents.

 

Section 4.4.                                Financial Statements.  The
Parent and the Borrower have furnished to each Lender (i) the audited
consolidated and unaudited consolidating balance sheet of the Parent and its
Subsidiaries as of December 31, 2004 and the related consolidated and
consolidating statements of income, shareholders’ equity and cash flows for the
Fiscal Year then ended prepared by KPMG LLP and (ii) the unaudited
consolidated and consolidating balance sheet of the Parent and its Subsidiaries
as of March 31, 2005, and the related unaudited consolidated and
consolidating statements of income and cash flows for the Fiscal Quarter and
year-to-date period then ending, certified by a Responsible Officer.  Such financial statements fairly present the
consolidated and consolidating financial condition of the Parent and its
Subsidiaries as of such dates and the consolidated and consolidating results of
operations for such periods in conformity with GAAP consistently applied,
subject to year end audit adjustments and the absence of footnotes in the case
of the statements referred to in clause (ii). Since December 31, 2004,
there have been no changes with respect to the Parent and its Subsidiaries
taken as a whole or the Borrower and its Subsidiaries taken as a whole, in each
case which have had or would reasonably be
expected to have, singly or in the aggregate, a Material Adverse Effect.

 

Section 4.5.                                Litigation and Environmental
Matters.

 

(a)                                  Other than litigation, investigations or
proceedings disclosed in any public Securities and Exchange Commission filings
by UIC prior to the Closing Date, no litigation, investigation or proceeding of
or before any arbitrators or Governmental Authorities is pending against or, to
the knowledge of the Parent or the Borrower, threatened against or affecting
the Parent or any of its Subsidiaries (i) as to which there is a
reasonable possibility of an adverse determination that would reasonably be
expected to have, either individually or in the aggregate, a Material Adverse
Effect or (ii) which in any manner draws into question the validity or
enforceability of this Agreement or any other Loan Document.

 

(b)                                 Except for the matters set forth on Schedule 4.5,
neither the Parent nor any of its Subsidiaries (i) has failed to comply
with any applicable Environmental Law or to obtain, maintain or comply with any
permit, license or other approval required under any applicable Environmental
Law, (ii) has become subject to any Environmental Liability, (iii) has
received written notice or to its knowledge any other notice of any claim with
respect to any Environmental Liability or (iv) knows of any reasonable
basis for any Environmental Liability, in each case of (i), (ii), (iii) or
(iv) which could reasonably be expected to have a Material Adverse Effect.

 

Section 4.6.                                Compliance with Laws and
Agreements.  The Parent and its Subsidiaries are in
compliance with (a) all Requirements of Law and all judgments, decrees and
orders of any Governmental Authority and (b) all indentures, agreements or
other instruments binding upon it or its properties, except where
non-compliance, either singly or in the aggregate, would not reasonably be
expected to result in a Material Adverse Effect.

 

51

 

Section 4.7.                                Investment Company Act, Etc. 
Neither the Parent nor any of its Subsidiaries is (a) an “investment
company” or is “controlled” by an “investment company”, as such terms are
defined in, or subject to regulation under, the Investment Company Act of 1940,
as amended, (b) a “holding company” as defined in, or subject to
regulation under, the Public Utility Holding Company Act of 1935, as amended or
(c) otherwise subject to any other regulatory scheme limiting its ability
to incur debt or requiring any approval or consent from or registration or
filing with, any Governmental Authority in connection therewith.

 

Section 4.8.                                Taxes.  The
Parent and its Subsidiaries and each other Person for whose taxes the Parent or
any of its Subsidiaries could become liable have timely filed or caused to be
filed all Federal income tax returns and all other material tax returns that
are required to be filed by them, and have paid all taxes shown to be due and
payable on such returns or on any assessments made against it or its property
and all other taxes, fees or other charges imposed on it or any of its property
by any Governmental Authority, except where the same are currently being
contested in good faith by appropriate proceedings and for which the Parent or
such Subsidiary, as the case may be, has set aside on its books adequate
reserves in accordance with GAAP.  The
charges, accruals and reserves on the books of the Parent and its Subsidiaries
in respect of such taxes are adequate, and no tax liabilities that could be
materially in excess of the amount so provided are anticipated.

 

Section 4.9.                                Margin Regulations.  None
of the proceeds of any of the Loans or Letters of Credit will be used, directly
or indirectly, for “purchasing” or “carrying” any “margin stock” with the
respective meanings of each of such terms under Regulation U of the Board of
Governors of the Federal Reserve System as now and from time to time hereafter
in effect or for any purpose that violates the provisions of the Regulation
U.  Neither the Parent nor its
Subsidiaries is engaged principally, or as one of its important activities, in
the business of extending credit for the purpose of purchasing or carrying “margin
stock.”

 

Section 4.10.                         ERISA.  No
ERISA Event has occurred or is reasonably expected to occur that, when taken
together with all other such ERISA Events for which liability is reasonably
expected to occur, would reasonably be expected to result in a Material Adverse
Effect.  The present value of all
accumulated benefit obligations under each Plan (based on the assumptions used
for purposes of Statement of Financial Standards No. 87) did not, as of
the date of the most recent financial statements reflecting such amounts,
exceed the fair market value of the assets of such Plan in excess of an amount
that would reasonably be expected to result in liability of the Parent,
the Borrower and their Subsidiaries having a Material Adverse Effect, and the present value of all accumulated
benefit obligations of all underfunded Plans (based on the assumptions used for
purposes of Statement of Financial Standards No. 87) did not, as of the
date of the most recent financial statements reflecting such amounts, exceed
the fair market value of the assets of all such underfunded Plans in excess of
an amount that would reasonably be expected to result in liability of
the Parent, the Borrower and their Subsidiaries having a Material Adverse
Effect.

 

Section 4.11.                         Ownership of Property.

 

(a)                                  Each of the Parent and its Subsidiaries
(excluding Detroit Stoker) has good title to, or valid leasehold interests in,
as applicable, all of its real and personal property 

 

52

 

necessary to the operation
of its business, including all such properties reflected in the most recent
audited consolidated balance sheet of the Parent referred to in Section 4.4
or purported to have been acquired by the Parent or such Subsidiary after said
date (except as sold or otherwise disposed of in the ordinary course of
business), in each case free and clear of Liens prohibited by this
Agreement.  All leases that individually
or in the aggregate are necessary to the business or operations of the Parent
and its Subsidiaries (excluding Detroit Stoker) are valid and subsisting and
are in full force.

 

(b)                                 Each of the Parent and its Subsidiaries owns,
or is licensed, or otherwise has the right, to use, all patents, trademarks,
service marks, trade names, copyrights and other intellectual property material
to its business, and the use thereof by the Parent and its Subsidiaries does
not infringe on the rights of any other Person except to the extent such
non-possession or infringement would reasonably be expected to have a Material
Adverse Effect.

 

(c)                                  The properties of the Parent and its
Subsidiaries (other than Detroit Stoker) are insured with insurance companies
that are not Affiliates of the Parent and its Subsidiaries, the selection of
which is consistent with sound corporate practices and customary for the
respective businesses, and such insurance in such amounts with such deductibles
and covering such risks as are consistent with sound corporate practices and
customary for the respective businesses, naming the Administrative Agent as an
additional insured and mortgage loss payee.

 

Section 4.12.                         Disclosure.  The
Parent and the Borrower have disclosed to the Lenders all agreements,
instruments, and corporate or other restrictions to which the Parent or any of
its Subsidiaries is subject, and all other matters known to any of them, that,
individually or in the aggregate, would reasonably be expected to result in a
Material Adverse Effect.  Neither the
Information Memorandum nor any of the reports (including without limitation all
reports that the Parent is required to file with the Securities and Exchange
Commission), financial statements, certificates or other information furnished
by or on behalf of the Parent or the Borrower to the Administrative Agent or
any Lender in connection with the negotiation or syndication of this Agreement
or any other Loan Document or delivered hereunder or thereunder (as modified or
supplemented by any other information so furnished) contains any material
misstatement of fact or omits to state any material fact necessary to make the
statements therein, taken as a whole, in light of the circumstances under which
they were made, not misleading in any material respect.

 

Section 4.13.                         Labor Relations. 
There are no strikes, lockouts or other material labor disputes or
grievances against the Parent or any of its Subsidiaries, or, to the Parent’s
or the Borrower’s knowledge, threatened against or affecting the Parent or any
of its Subsidiaries, and no significant unfair labor practice, charges or
grievances are pending against the Parent or any of its Subsidiaries, or to the
Parent’s or the Borrower’s knowledge, threatened against any of them before any
Governmental Authority that would reasonably be expected to have a Material
Adverse Effect.  All payments due from
the Parent or any of its Subsidiaries pursuant to the provisions of any
collective bargaining agreement have been paid or accrued as a liability on the
books of the Parent or any such Subsidiary, except where the failure to do so
would not reasonably be expected to have a Material Adverse Effect.

 

53

 

Section 4.14.                         Subsidiaries.  Schedule 4.14
sets forth the name of, the ownership interest in, the jurisdiction of
incorporation or organization of, and the type of, each of its Subsidiary of
the Parent and identifies each Subsidiary that is a Subsidiary Loan Party, a
Non-U.S. Subsidiary and/or a Material Subsidiary of the Parent or the Borrower,
in each case as of the Closing Date.

 

Section 4.15.                         Solvency.  After
giving effect to the execution and delivery of the Loan Documents, the making
of the Loans under this Agreement, and the repayment of the Refinanced
Indebtedness each Loan Party will be Solvent.

 

Section 4.16.                         OFAC.  No Loan Party (i) is a person whose
property or interest in property is blocked or subject to blocking pursuant to Section 1
of Executive Order 13224 of September 23, 2001 Blocking Property and
Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or
Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii) engages in any
dealings or transactions prohibited by Section 2 of such executive order,
or is otherwise associated with any such person in any manner violative of Section 2,
or (iii) is a person on the list of Specially Designated Nationals and
Blocked Persons or subject to the limitations or prohibitions under any other
U.S. Department of Treasury’s Office of Foreign Assets Control regulation or
executive order.

 

Section 4.17.                         Patriot
Act.  Each Loan Party is in
compliance, in all material respects, with (i) the Trading with the Enemy
Act, as amended, and each of the foreign assets control regulations of the
United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended)
and any other enabling legislation or executive order relating thereto, and (ii) the
Uniting And Strengthening America By Providing Appropriate Tools Required To
Intercept And Obstruct Terrorism (USA Patriot Act of 2001).  No part of the proceeds of the Loans will be
used, directly or indirectly, for any payments to any governmental official or
employee, political party, official of a political party, candidate for
political office, or anyone else acting in an official capacity, in order to
obtain, retain or direct business or obtain any improper advantage, in
violation of the United States Foreign Corrupt Practices Act of 1977, as
amended.

 

Section 4.18.                         Security
Documents.  (a) The Pledge
Agreements are effective to create in favor of the Administrative Agent, for
the ratable benefit of the Lenders, a legal, valid and enforceable security
interest in the Pledged Collateral (as defined in the Pledge Agreements) and,
when such Collateral is delivered to the Administrative Agent, together with
stock powers duly executed in blank, the Pledge Agreements shall constitute a
fully perfected Lien on, and security interest in, all right, title and
interest of the pledgor thereunder in such Collateral, in each case prior and
superior in right to any other Person.

 

(b) (i)                   The Security
Agreement is effective to create in favor of the Administrative Agent, for the
ratable benefit of the Lenders, a legal, valid and enforceable security
interest in the Collateral (as defined in the Security Agreement) and, (ii) when
UCC financing statements in appropriate form are filed in the offices specified
on Schedule 2 to the Perfection Certificate, the Security Agreement shall
constitute a fully perfected Lien on, and security interest in, all right,
title and interest of the grantors thereunder in such Collateral (other than
the Copyrights, Trademarks and Patents), prior and superior in right to any
other Person, other than with respect to Liens expressly permitted by Section 7.2.

 

54

 

(c)                                  When
the UCC financing statements referenced in clause (b)(ii) above are made
and when the Patent Security Agreement and Trademark Security Agreement filed
in the United States Patent and Trademark Office and the Copyright Security
Agreement is filed in the United States Copyright Office, the Security
Agreement shall constitute a fully perfected Lien on, and security interest in,
all right, title and interest of the Loan Parties in the Intellectual Property
(as defined in the Security Agreement) in which a security interest may be
perfected by filing, recording or registering a security agreement, financing
statement or analogous document in the United States Patent and Trademark
Office or the United States Copyright Office, as applicable, in each case prior
and superior in right to any other Person.

 

(d)                                 Each
Mortgage, when duly executed and delivered by the relevant Loan Party, will be
effective to create in favor of the Administrative Agent, for the ratable
benefit of the Lenders, a legal, valid and enforceable Lien on all of the Loan
Parties’ right, title and interest in and to the Mortgaged Properties
thereunder and the proceeds thereof, and when the Mortgages are filed in the
real estate records in Baltimore County, Maryland, the Mortgages shall
constitute a Lien on, and security interest in, all right, title and interest
of the Loan Parties in such Mortgaged Properties and the proceeds thereof,
prior and superior in right to any other Person, subject to the exceptions
listed in each title insurance policy covering such Mortgage.

 

ARTICLE V

AFFIRMATIVE COVENANTS

 

Each
of the Parent and the Borrower covenants and agrees that so long as any Lender
has a Commitment hereunder or any Obligation remains unpaid or outstanding:

 

Section 5.1.                                Financial Statements and Other
Information.  The Borrower will deliver to the
Administrative Agent and each Lender:

 

(a)                                  as
soon as available and in any event within 90 days after the end of each Fiscal
Year of the Parent, an audited consolidated and an unaudited consolidating
balance sheet of the Parent and its Subsidiaries as of the end of such Fiscal
Year and the related consolidated and consolidating statements of income,
stockholders’ equity and cash flows (together with all footnotes thereto) of
the Parent and its Subsidiaries for such Fiscal Year, setting forth in each
case in comparative form the figures for the previous Fiscal Year, all in
reasonable detail and reported on by KPMG LLP or other independent public
accountants of nationally recognized standing (without a “going concern” or
like qualification, exception or explanation and without any qualification or
exception as to scope of such audit) to the effect that such financial
statements present fairly in all material respects the financial condition and
the results of operations of the Parent and its Subsidiaries for such Fiscal
Year on a consolidated and consolidating basis in accordance with GAAP and that
the examination by such accountants in connection with such consolidated
financial statements has been made in accordance with generally accepted auditing
standards;

 

55

 

(b)                                 as
soon as available and in any event within 90 days after the end of each Fiscal
Year of the Borrower, an audited consolidated and an unaudited consolidating
balance sheet of the Borrower and its Subsidiaries as of the end of such Fiscal
Year and the related consolidated and consolidating statements of income,
stockholders’ equity and cash flows (together with all footnotes thereto) of
the Borrower and its Subsidiaries for such Fiscal Year, setting forth in each
case in comparative form the figures for the previous Fiscal Year, all in
reasonable detail and reported on by KPMG LLP or other independent public
accountants of nationally recognized standing (without a “going concern” or like
qualification, exception or explanation and without any qualification or
exception as to scope of such audit) to the effect that such financial
statements present fairly in all material respects the financial condition and
the results of operations of the Borrower and its Subsidiaries for such Fiscal
Year on a consolidated and consolidating basis in accordance with GAAP and that
the examination by such accountants in connection with such consolidated
financial statements has been made in accordance with generally accepted
auditing standards; provided  however, that delivery of such
financial statements pursuant to this clause (b) shall not be required so
long as (x) the consolidated revenue of the Borrower and its Subsidiaries for
such Fiscal Year is more than 85% of the consolidated revenue of the Parent and
its Subsidiaries and (y) each 10-Q and 10-K filed by the Parent with the SEC
during such fiscal year contains a footnote with information of substantially
the same type as that depicted in footnote 21 in the December 31, 2004
Parent 10-K and footnote P in the September 30, 2004 UIC 10-Q;

 

(c)                                  as
soon as available and in any event within 45 days after the end of each of the
first three (3) Fiscal Quarters and within 60 days after the end of each
fourth Fiscal Quarter of the Parent, an unaudited consolidated and
consolidating balance sheet of the Parent and its Subsidiaries as of the end of
such Fiscal Quarter and the related unaudited consolidated and consolidating
statements of income and cash flows of the Parent and its Subsidiaries for such
Fiscal Quarter and the then elapsed portion of such Fiscal Year, setting forth
in each case in comparative form the figures for the corresponding quarter and
the corresponding portion of Parent’s previous Fiscal Year;

 

(d)                                 as
soon as available and in any event within 45 days after the end of each of the
first three (3) Fiscal Quarters and within 60 days after the end of each
fourth Fiscal Quarter of the Borrower, an unaudited consolidated and
consolidating balance sheet of the Borrower and its Subsidiaries as of the end
of such Fiscal Quarter and the related unaudited consolidated and consolidating
statements of income and cash flows of the Borrower and its Subsidiaries for
such Fiscal Quarter and the then elapsed portion of such Fiscal Year, setting
forth in each case in comparative form the figures for the corresponding
quarter and the corresponding portion of Borrower’s previous Fiscal Year;

 

(e)                                  as
soon as available and in any event within 45 days after the end of each of the
first three (3) Fiscal Quarters and within 60 days after the end of each
fourth Fiscal Quarter of the Borrower, (i) an accounts receivable aging
report and inventory/work in process report as of the end of the immediately
preceding Fiscal Quarter, (ii) a detailed report of cumulative expenditures or applications of UIC Cash since the
Closing Date, including a description of all UIC Cash invested in Permitted UIC
Cash Investments and Permitted UIC Cash Acquisitions, a description of all UIC
Cash distributed as Permitted UIC Cash Dividends (including the date and amount
thereof) and a description of all UIC Cash expended as Permitted 

 

56

 

UIC Cash CapEx (including
the date and amount thereof) and (iii) copies of any current and future
analyses or reports concerning projected asbestos liabilities of Parent or any
of its Subsidiaries, including without limitation, Detroit Stoker, and related
and insurance coverage (and any updates and confirmations thereof), in each
case in form and substance satisfactory to the Administrative Agent;

 

(f)                                    concurrently with the delivery of the
financial statements referred to in clauses (a), (b), (c) and (d) above,
a Compliance Certificate signed by the principal financial officer or Treasurer
of the Parent and the Borrower, which Compliance Certificate shall (a) include
a certification as to statements consistent with the applicable requirements of
the Securities and Exchange Commission, (b) include a certification as to whether
there exists a Default or Event of Default on the date of such Compliance
Certificate, and if a Default or an Event of Default exists, specifying the
details thereof and the action which the Parent and the Borrower have taken or
proposes to take with respect thereto, (c) set forth in reasonable detail
calculations demonstrating compliance with the applicable financial covenants
set forth in Article VI, (d) state whether any change in GAAP
or the application thereof has occurred since the date of the Parent’s or the
Borrower’s most recent audited financial statements delivered in connection
with Section 4.4, and, if any change has occurred, specifying the
effect of such change on the financial statements accompanying such certificate
and (e) state whether any change has occurred in the methodology for
calculating the Net Asbestos Liability reported in such financial statements,
and if any change has occurred, describing in reasonable detail the new
methodology for calculating the Net Asbestos Liability and the reasons for such
change in methodology, and confirming that the Parent’s auditing firm and
third-party asbestos consultant have reviewed and approved such change in
methodology;

 

(g)                                 promptly after the same become publicly
available, copies of material reports, proxy statements and other material
documents filed with the Securities and Exchange Commission, or any
Governmental Authority succeeding to any or all functions of said Commission,
or with any national securities exchange, or distributed by the Parent or the
Borrower to its shareholders generally, as the case may be;

 

(h)                                 concurrently
with the delivery of the financial statements referred to in clause (a) above,
a certificate of the chief financial officer or the chief legal officer of
Borrower setting forth the information required pursuant to Section 1, 2,
7, 8 and 9 of the Perfection Certificate or confirming that there has been no
change in such information since the date of the Perfection Certificate
delivered on the Closing Date or the date of the most recent certificate
delivered pursuant to this Section.

 

(i)                                     promptly following any request therefor, such
other information regarding the results of operations, business affairs and
financial condition of the Parent, the Borrower or any of their Subsidiaries as
the Administrative Agent or any Lender may reasonably request.

 

Section 5.2.                                Notices of Material Events.  The
Parent and the Borrower will furnish to the Administrative Agent and each
Lender prompt written notice of the following:

 

(a)                                  the occurrence of any Default or Event of
Default;

 

57

 

(b)                                 the filing or commencement of any action,
suit or proceeding by or before any arbitrator or Governmental Authority
against or, to the knowledge of the Parent or the Borrower, affecting the
Parent, the Borrower or any of their Subsidiaries which, if adversely
determined, would reasonably be expected to result in a Material Adverse
Effect;

 

(c)                                  the occurrence of any event or any other
development by which the Parent, the Borrower or any of their Subsidiaries (i) fails
to comply with any applicable Environmental Law or to obtain, maintain or
comply with any permit, license or other approval required under any applicable
Environmental Law, (ii) becomes subject to any Environmental Liability, (iii) receives
written notice or to its knowledge any other notice of any claim with respect
to any Environmental Liability, or (iv) has actual knowledge of any
reasonable basis for the imposition on Parent or Borrower or any of its
Subsidiaries of any Environmental Liability and in each of the preceding
clauses (i), (ii), (iii) or (iv), which individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect;

 

(d)                                 the
occurrence of any ERISA Event that alone, or together with any other ERISA
Events that have occurred, would reasonably be expected to result in liability
of the Parent, the Borrower and their Subsidiaries having a Material Adverse
Effect.

 

(e)                                  to
their knowledge, the occurrence of any default or event of default, or the
receipt by the Parent, the Borrower or any of their Subsidiaries of any written
notice of an alleged default or event of default, with respect of any Material
Indebtedness of the Parent, the Borrower or any of their Subsidiaries;

 

(f)                                    any
change (i) in any Loan Party’s corporate name or in any trade name used to
identify it in the conduct of its business or in the ownership of its
properties, (ii) in any Loan Party’s chief executive office, its principal
place of business, any office in which it maintains books or records relating
to Collateral owned by it or any office or facility at which Collateral owned
by it is located (including the establishment of any such new office or
facility), (iii) in any Loan Party’s identity or corporate structure, (iv) in
any Loan Party’s federal taxpayer identification number or organizational
number or (v) in any Loan Party’s jurisdiction of organization, as well as
notice of the destruction or damage to any material portion of the Collateral;
and

 

(g)                                 any other development that results in, or
would reasonably be expected to result in, a Material Adverse Effect.

 

Each notice delivered under
this Section 5.2 shall be accompanied by a written statement of a
Responsible Officer setting forth the details of the event or development
requiring such notice and any action taken or proposed to be taken with respect
thereto.

 

Section 5.3.                                Existence; Conduct of Business.  The
Parent and the Borrower will, and will cause each Restricted Subsidiary to, do
or cause to be done all things necessary to preserve, renew and maintain in
full force and effect its legal existence and its respective material rights,
licenses, permits, privileges, franchises, patents, copyrights, trademarks and
trade names necessary to the conduct of its business and will continue to
engage in the same business as presently conducted or such other businesses
that are reasonably related thereto; provided, that 

 

58

 

nothing in this Section 5.3
shall prohibit any merger, consolidation, liquidation or dissolution permitted
under Section 7.3.

 

Section 5.4.                                Compliance with Laws, Etc. The Parent and the Borrower will, and will
cause each Restricted Subsidiary to, comply with all laws, rules, regulations
and requirements of any Governmental Authority applicable to its business and
properties, including without limitation, all Environmental Laws, ERISA and
OSHA, except where the failure to do so, either individually or in the aggregate,
would not reasonably be expected to have a Material Adverse Effect

 

Section 5.5.                                Payment of Obligations.  The
Parent and the Borrower will, and will cause each Restricted Subsidiary to, pay
and discharge at or before maturity, all of its obligations and liabilities
(including without limitation all tax liabilities and claims that could result
in a statutory Lien) before the same shall become delinquent or in default,
except where (a) the validity or amount thereof is being contested in good
faith by appropriate proceedings (including appellate proceedings), (b) the
Parent, the Borrower or such Restricted Subsidiary, as the case may be, has set
aside on its books adequate reserves with respect thereto in accordance with
GAAP and (c) the failure to make payment pending such contest would not
reasonably be expected to result in a Material Adverse Effect.

 

Section 5.6.                                Books and Records. The Parent and the Borrower will, and will
cause each Restricted Subsidiary to, keep proper books
of record and account in which full, true and correct entries shall be made of
all dealings and transactions in relation to its business and activities to the
extent necessary to prepare the consolidated financial statements of the Parent
and the Borrower in conformity with GAAP.

 

Section 5.7.                                Visitation, Inspection, Etc.  The
Parent and the Borrower will, and will cause each Restricted Subsidiary to,
permit any representative of the Administrative Agent or any Lender, to visit
and inspect its properties, to examine its books and records and to make copies
and take extracts therefrom, and to discuss its affairs, finances and accounts
with any of its officers and with its independent certified public accountants,
all at such reasonable times and as often as the Administrative Agent or any
Lender may reasonably request after reasonable prior notice to the Borrower; provided,
however, if an Event of Default has occurred and is continuing, no prior
notice shall be required. 
Notwithstanding the foregoing, if no Default or Event of Default has
occurred, any such visitation and inspection occurring more than three times in
any Fiscal Year shall be at the expense of the Administrative Agent and the
Lenders.  If an Event of Default has
occurred and is continuing, Borrower will, upon request of the Administrative
Agent, obtain an appraisal of the Hunt Valley, Maryland Real Estate subject to
a Mortgage from an appraiser acceptable to the Administrative Agent, and to the
extent the value of such Real Estate is greater than $30,000,000, the Borrower
will execute (i) an amendment to the Mortgage on such Real Estate
increasing the limit on the Obligations secured by such Mortgage to the
appraised value, (ii) obtain a title endorsement in form and substance
satisfactory to Administrative Agent insuring such amendment and (iii) pay
all recording, intangible or other taxes due in connection therewith and
executing any tax affidavits in connection therewith requested by the
Administrative Agent.

 

59

 

Section 5.8.                                Maintenance of Properties; Insurance.  The Parent and the Borrower will, and will
cause each Restricted Subsidiary
to, (a) keep and maintain all property necessary to the conduct of its
business in good working order and condition, ordinary wear and tear excepted,
and (b) maintain with insurance
companies that are not Affiliates of the Parent and its Subsidiaries, the
selection of which is consistent with sound corporate practices and customary
for the respective businesses, (i) insurance with respect to its
properties and business, and the properties and business of its Subsidiaries,
against such casualties and contingencies and of such types and in such amounts
as are consistent with sound corporate practices and are customary in their
respective businesses and (b) all insurance required to be maintained
pursuant to the Security Documents, and will, upon reasonable request of the
Administrative Agent, furnish to each Lender at reasonable intervals a
certificate of an Authorized Officer of Borrower setting forth the nature and
extent of all insurance maintained by the Parent, the Borrower and each
Restricted Subsidiary in accordance with this Section 5.8, and (c) at
all times shall name the Administrative Agent as additional insured on all
liability insurance policies of the Parent, the Borrower and each Restricted
Subsidiary and as loss payee (pursuant to the loss payee endorsement approved
by the Administrative Agent) on all casualty and property insurance policies of
the Parent, the Borrower and each Restricted Subsidiary.  The Parent shall cause
Detroit Stoker, at all times, to continue to be named as an insured under the
Parent’s asbestos insurance polices, with all rights thereunder accruing for
the benefit of the Parent.

 

Section 5.9.                                Use of Proceeds and Letters of
Credit.  The Borrower will use the proceeds of all
Loans to refinance existing Indebtedness on the Closing Date, to finance
working capital needs, Permitted
Acquisitions, capital expenditures and for other general corporate purposes of
the Borrower and its Subsidiaries.  No
part of the proceeds of any Loan will be used, whether directly or indirectly,
for any purpose that would violate any rule or regulation of the Board of
Governors of the Federal Reserve System, including Regulations T, U or X.  All Letters of Credit will be used for
general corporate purposes.

 

Section 5.10.                         Additional Subsidiaries.

 

(a)                                  In
the event that any Person becomes both a Domestic Subsidiary and a Material
Subsidiary of the Borrower, whether pursuant to an acquisition or otherwise,
(x) the Borrower shall promptly notify the Administrative Agent and the Lenders
of the creation or acquisition of such Subsidiary and (y) within ten (10) Business
Days thereafter, the Borrower shall cause such Person to become a Subsidiary
Loan Party, as provided in clause (d) below, and shall pledge, or cause
any Person owning Capital Stock of such Person to pledge, all Capital Stock of
such Person to the Administrative Agent as security for the Obligations by
executing and delivering a new Pledge Agreement or a joinder to an existing
Pledge Agreement, and delivering the original stock certificates evidencing
such Capital Stock to the Administrative Agent, together with appropriate stock
powers executed in blank.

 

(b)                                 If, at any time, the aggregate revenue or
assets (on a non-consolidated basis) of the Borrower and its Subsidiaries that
are then Subsidiary Loan Parties are less than the Aggregate Subsidiary
Threshold, then the Borrower shall cause one or more other Subsidiaries to become
additional Subsidiary Loan Parties, as provided in clause (d) below,
within ten (10) Business Days after such revenues or assets become less
than the Aggregate Subsidiary Threshold so that after including the revenue and
assets of any such additional Subsidiary Loan 

 

60

 

Parties, the aggregate
revenue and assets (on a non-consolidated basis) of the Borrower and all such
Subsidiary Loan Parties would equal or exceed such 90% threshold as set forth
above.

 

(c)                                  The Borrower may elect at any time to have
any Subsidiary become an additional Subsidiary Loan Party as provided in clause
(d) below.  Upon the occurrence and
during the continuation of any Event of Default, if the Required Lenders so
direct, the Borrower shall (i) cause all of its Subsidiaries to become
additional Subsidiary Loan Parties, as provided in clause (d) below,
within ten (10) Business Days after the Borrower’s receipt of written
confirmation of such direction from the Administrative Agent.

 

(d)                                 A Subsidiary shall become a Subsidiary Loan
Party by (i) executing and delivering to the Administrative Agent
joinders, in form and substance satisfactory to the Administrative Agent, to
the Subsidiary Guaranty Agreement, Security Agreement and, to the extent such
Subsidiary owns Capital Stock of another Person, the applicable Pledge
Agreement, (ii) executing and delivering to the Administrative Agent
Copyright Security Agreement, Patent Security Agreement and Trademark Security
Agreement to the extent such Person owns any Copyrights, Patents or Trademarks,
as applicable, (iii) filing, or at the request of the Administrative Agent
authorizing the filing of, all such UCC financing statements or similar
instruments required by the Administrative Agent to perfect Liens in favor of
the Administrative Agent and granted under any of the Loan Documents, (iv) delivering
the original stock certificates evidencing any Capital Stock pledged by such
Person to the Administrative Agent, together with appropriate stock powers
executed in blank, (v) granting Liens in favor of the Administrative Agent
in all owned Real Estate and in all leased Real Estate with a remaining lease
term of five years or more or otherwise deemed material by the Administrative
Agent by executing and delivering to the Administrative Agent such Real Estate
Documents as the Administrative Agent shall reasonably require, and (vi) delivering
all such other documentation (including without limitation, lien searches,
title insurance policies, surveys, environmental reports, legal opinions,
landlord waivers, and certified organizational documents) and taking all such
other actions as such Person would have been required to deliver and take
pursuant to Section 3.1 if such Person had been a Subsidiary Loan Party
on the Closing Date.  No Subsidiary that
becomes a Subsidiary Loan Party shall thereafter cease to be a Subsidiary Loan
Party or be entitled to be released or discharged from its obligations under
the Subsidiary Guaranty Agreement.  All
joinders and other documents executed or delivered under this Section 5.10
shall be in form and substance satisfactory to the Administrative Agent.

 

(e)                                  In
the event that any Person becomes a Non-U.S. Subsidiary owned directly by the
Borrower or a Domestic Subsidiary of the Borrower, whether pursuant to an
acquisition or otherwise, (x) the Borrower shall promptly notify the
Administrative Agent and the Lenders thereof and (y) no later than thirty (30)
days after such Person becomes a Non-U.S. Subsidiary, or if the Administrative
Agent determines in its sole discretion that the Borrower is working in good
faith, such longer period as the Administrative Agent shall permit not to
exceed sixty (60) additional days, the Borrower shall, or shall cause its
Domestic Subsidiary owning such Person, (i) to pledge all of the Capital
Stock of such Non-U.S. Subsidiary (or if the pledge of all of the voting
Capital Stock of such Non-U.S. Subsidiary would result in materially adverse
tax consequences, then such pledge shall be limited to sixty-five percent (65%)
of the voting Capital Stock and one hundred percent (100%) of the non-voting
Capital Stock owned by the Borrower or any Domestic Subsidiary, as applicable)
to the Administrative Agent as security for 

 

61

 

the Obligations pursuant to a pledge agreement in form
and substance reasonably satisfactory to the Administrative Agent and the
Required Lenders, (ii) to deliver the original stock certificates
evidencing such pledged Capital Stock, together with appropriate stock powers
executed in blank and (iii) to deliver all such other documentation
(including without limitation, lien searches, legal opinions, landlord waivers,
and certified organizational documents) and to take all such other actions as
Borrower or such Domestic Subsidiary would have been required to deliver and
take pursuant to Section 3.1 if such Subsidiary had been a Non-U.S.
Subsidiary on the Closing Date.

 

Section 5.11.                         Casualty
and Condemnation.  The Parent and
the Borrower (a) will furnish to the Administrative Agent and the Lenders
prompt written notice of any casualty or other insured damage to any material
portion of any Collateral or the commencement of any action or preceding for
the taking of any material portion of any Collateral or any part thereof or
interest therein under power of eminent domain or by condemnation or similar
proceeding and (b) will ensure that the Net Cash Proceeds of any such
event (whether in the form of insurance proceeds, condemnation awards or
otherwise) are collected and applied in accordance with the applicable
provisions of this Agreement and the Security Documents.

 

Section 5.12.                         Controlled
Accounts.

 

(a)                                  Commencing
five Business Days after the Closing Date, the Parent and the Borrower shall,
and shall cause each Restricted Subsidiary to, maintain an amount equal to UIC
Cash, less $10,000,000, in deposit or investment accounts with the
Administrative Agent, one of its affiliates or with other financial
institutions or securities intermediaries that (together with the applicable
Loan Party) have executed and delivered to the Administrative Agent Control
Account Agreements, in form and substance reasonably acceptable to the
Administrative Agent.

 

(b)                                 Commencing
90 days after the Closing Date, the Parent and the Borrower shall, and shall
cause each Restricted Subsidiary to, establish and maintain all domestic
deposit and disbursement bank accounts and investment accounts with the
Administrative Agent, one of its affiliates or with other financial
institutions or securities intermediaries that (together with the applicable
Loan Party) have executed and delivered to the Administrative Agent Control
Account Agreements, in form and substance reasonably acceptable to the
Administrative Agent.

 

Section 5.13.                         Additional
Real Estate.  To the
extent any Loan Party proposes after the Closing Date to acquire Real Estate
with a fair market value of at least $1,000,000, such Loan Party shall at the
time of such acquisition provide to the Administrative Agent all Real Estate
Documents reasonably requested by the Administrative Agent granting the
Administrative Agent a first priority Lien on such Real Estate, together with
environmental audits, mortgage title insurance policies, real property survey,
local counsel opinion(s), copies of any lease, if required by the
Administrative Agent, supplemental casualty insurance and flood insurance, and
such other documents, instruments or agreements reasonably requested by the
Administrative Agent, in each case, in form and substance reasonably
satisfactory to the Administrative Agent.

 

Section 5.14.                         Further
Assurances.  The Parent and the
Borrower will, and will cause each Restricted Subsidiary to, execute any and
all further documents, financing statements, agreements and instruments, and
take all such further actions (including the filing and recording 

 

62

 

of financing statements, fixture filings, mortgages,
deeds of trust and other documents), which may be required under any applicable
law, or which the Administrative Agent or the Required Lenders may reasonably
request, to effectuate the transactions contemplated by the Loan Documents or
to grant, preserve, protect or perfect the Liens created by the Security
Documents or the validity or priority of any such Lien, all at the expense of
the Loan Parties.  Borrower also agrees
to provide to the Administrative Agent, from time to time upon reasonable
request, evidence reasonably satisfactory to the Administrative Agent as to the
perfection and priority of the Liens created or intended to be created by the
Security Documents.

 

Section 5.15.                         Post-Closing
Requirements.  The Parent and the
shall and shall cause each Restricted Subsidiary to deliver to the Agent:

 

(a)                                  no
later than 5 Business Days after the Closing Date, evidence that the Loan
Parties have complied with Section 5.12(a);

 

(b)                                 no
later than 15 days after the Closing Date, the original stock certificate
evidencing the shares of ESL Defense Holdings Ltd. pledged to the Agent under
the Borrower Pledge Agreement;

 

(c)                                  no
later than 30 days after the Closing Date, (i) evidence that the First
Fidelity filings against AAI Corporation in the US Patent and Trademark Office
have been terminated and (ii) landlord waivers with respect to the Real
Estate leased in Jacksonville, Florida and Summerville, South Carolina, in form
and substance reasonably satisfactory to the Administrative Agent;

 

(d)                                 no
later than 60 days after the Closing Date, final title policies in the form of
the “marked” title commitments delivered to Agent on the Closing Date for all Mortgages;

 

(e)                                  no
later than 90 days after the Closing Date, evidence that the Loan Parties have
complied with Section 5.12(b); and

 

(f)                                    no
later than 90 days after the Closing Date (or such later date as the Agent
shall agree in writing), a landlord waiver with respect to the Real Estate
leased in Choctaw, Mississippi, in form and substance satisfactory to the
Administrative Agent, except to the extent that the Administrative Agent, in
its sole discretion, waives such landlord waiver in writing.

 

ARTICLE VI

FINANCIAL COVENANTS

 

Each
of the Parent and the Borrower covenants and agrees that so long as any Lender
has a Commitment hereunder or any Obligation remains unpaid or outstanding:

 

Section 6.1.                                Borrower’s
Leverage Ratio.  The Borrower and
its Subsidiaries will maintain at all times a Leverage Ratio
of not greater than 3.00:1.00.

 

63

 

Section 6.2.                                Fixed Charge Coverage Ratio.  The
Borrower and its Subsidiaries will maintain, as of the end of each Fiscal
Quarter, commencing with the Fiscal Quarter ending June 30, 2005, a Fixed
Charge Coverage Ratio of not less than:

 

	
  Fiscal Quarter

  	
   

  	
  Fixed Charge Coverage Ratio

  	
   

  
	
  Fiscal Quarters ending on

  	
   

  	
   

  	
   

  
	
  June 30, 2005 and

  	
   

  	
   

  	
   

  
	
  September 30, 2005

  	
   

  	
  1.00:1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Quarters ending

  	
   

  	
   

  	
   

  
	
  December 31, 2005 and

  	
   

  	
   

  	
   

  
	
  March 31, 2006

  	
   

  	
  1.25:1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Each Fiscal Quarter ending after

  	
   

  	
   

  	
   

  
	
  March 31, 2006

  	
   

  	
  1.50:1.00

  	
   

  

 

Section 6.3.                                Consolidated Tangible Net Worth The Borrower and its Subsidiaries will not
permit their Consolidated Tangible Net Worth at any time to be less than an
amount equal to the sum of (i) 85% of their Consolidated Tangible Net
Worth as of December 31, 2004 plus (ii) 50%
of Consolidated Net Income of the Borrower and its Subsidiaries on a cumulative
basis for all preceding Fiscal Quarters, commencing with the Fiscal Quarter
ending March 31, 2005; provided, that if Consolidated Net Income of
the Borrower and its Subsidiaries is negative in any Fiscal Quarter the amount
added for such Fiscal Quarter shall be zero and such negative Consolidated Net
Income shall not reduce the amount of Consolidated Net Income added from any
previous Fiscal Quarter; plus (iii) 100%
of the amount by which the Borrower’s “total stockholders’ equity” is increased
as a result of any public or private offering of common stock of the Borrower
after the Closing Date.  Promptly upon
the consummation of such offering, the Borrower shall notify the Administrative
Agent in writing of the amount of such increase in “total stockholders’ equity”.

 

Section 6.4.                                Parent’s Leverage Ratio.  The
Parent and its Subsidiaries (excluding Detroit Stoker) will maintain at all
times a Leverage Ratio of not greater than
3.00:1.00:

 

Section 6.5.                                Parent’s Consolidated Tangible
Net Worth The Parent and
its Subsidiaries (excluding Detroit Stoker) will not permit their Consolidated
Tangible Net Worth at any time to be less than an amount equal to the sum of (i) 85%
of their Consolidated Tangible Net Worth as at December 31, 2004, plus (ii) 50% of Consolidated Net Income of the Parent
and such Subsidiaries on a cumulative basis for all preceding Fiscal Quarters,
commencing with the Fiscal Quarter ending March 31, 2005; provided,
that if Consolidated Net Income of the Parent and such Subsidiaries is negative
in any Fiscal Quarter the amount added for such Fiscal Quarter shall be zero
and such negative Consolidated Net Income shall not reduce the amount of
Consolidated Net Income added from any previous Fiscal Quarter; plus (iii) 100% of the amount by which the Parent’s “total
stockholders’ equity” is increased as a result of any public or private
offering of common stock of the Parent after the Closing Date, less (iv) 100% of Permitted UIC Cash Dividends made
after the Closing Date, less (v) 100%
of dividends and distributions made after December 31, 2004 and prior to
the Closing Date, which amount is $24,999,975. 
Promptly 

 

64

 

upon the consummation of any
offering of common stock, the Parent shall notify the Administrative Agent in
writing of the amount of such increase in “total stockholders’ equity”.

 

ARTICLE VII

NEGATIVE COVENANTS

 

Each
of the Parent and the Borrower covenants and agrees that so long as any Lender
has a Commitment hereunder or any Obligation remains outstanding:

 

Section 7.1.                                Indebtedness and Preferred Equity.  The
Parent and the Borrower will not, and will not permit any Restricted Subsidiary
to, create, incur, assume or suffer to exist any Indebtedness, except:

 

(a)                                  Indebtedness created pursuant to the Loan
Documents;

 

(b)                                 Intentionally omitted;

 

(c)                                  Indebtedness of the Borrower or any
Subsidiary incurred to finance the acquisition, construction or improvement of
any fixed or capital assets, including Capital Lease Obligations, and any
Indebtedness assumed in connection with the acquisition of any such assets or
secured by a Lien on any such assets prior to the acquisition thereof;
provided, that such Indebtedness is incurred prior to or within 90 days after
such acquisition or the completion of such construction or improvements or
extensions, renewals, and replacements of any such Indebtedness that do not
increase the outstanding principal amount thereof (immediately prior to giving
effect to such extension, renewal or replacement) or shorten the maturity or
the weighted average life thereof; provided further, that the aggregate
principal amount of such Indebtedness does not exceed $5,000,000 at any time
outstanding;

 

(d)                                 Indebtedness of the Borrower owing to the
Parent or any Subsidiary of the Borrower and of any Subsidiary of the Borrower
owing to the Borrower or any other Subsidiary of the Borrower; provided,
that any such Indebtedness that is owed to a Subsidiary that is not a
Subsidiary Loan Party shall be subject to Section 7.4;

 

(e)                                  Guarantees by the Borrower of Indebtedness of
any of its Subsidiaries and by any Subsidiary of Indebtedness of the Borrower
or any other Subsidiary; provided, that Guarantees by any Loan Party of
Indebtedness of any Subsidiary that is not a Subsidiary Loan Party shall be
subject to Section 7.4;

 

(f)                                    Indebtedness of any Person which becomes a
Subsidiary of the Borrower after the date of this Agreement; provided,
that such Indebtedness exists at the time that such Person becomes a Subsidiary
and is not created in contemplation of or in connection with such Person
becoming a Subsidiary;

 

(g)                                 Indebtedness in respect of Hedging
Obligations permitted by Section 7.10;

 

(h)                                 the Convertible Notes;

 

65

 

(i)                                     Indebtedness limited in recourse solely to
the Goose Creek Facility and in an aggregate amount not to exceed the fair
market value of the Goose Creek Facility; and

 

(j)                                     other
unsecured Indebtedness of the Borrower or its Subsidiaries in an aggregate principal
amount not to exceed $5,000,000 at any time outstanding.

 

The Parent and the Borrower will not, and will not
permit any Restricted Subsidiary to, issue any preferred stock or other
preferred equity interests that (i) matures or is mandatorily redeemable
pursuant to a sinking fund obligation or otherwise, (ii) is or may become
redeemable or repurchaseable by the Parent, the Borrower or such Restricted
Subsidiary at the option of the holder thereof, in whole or in part or (iii) is
convertible or exchangeable at the option of the holder thereof for
Indebtedness or preferred stock or any other preferred equity interests
described in this paragraph, on or prior to, in the case of clause (i), (ii) or
(iii), the first anniversary of the Revolving Commitment Termination Date.

 

Section 7.2.                                Negative Pledge.  The
Parent and the Borrower will not, and will not permit any Restricted Subsidiary
to, create, incur, assume or suffer to exist any Lien on any of its assets or
property now owned or hereafter acquired or, except:

 

(a)                                  Liens
securing the Obligations, provided, however, that no Liens may
secure Hedging Obligations without securing all other Obligations on a basis at
least pari passu with such Hedging Obligations and subject to the priority of
payments set forth in Section 2.20 and Section 8.2 of
this Agreement;

 

(b)                                 Permitted Encumbrances;

 

(c)                                  any Liens on any property or asset of the
Parent, the Borrower or any Restricted Subsidiary existing on the Closing Date
set forth on Schedule 7.2; provided, that such Lien shall
not apply to any other property or asset of the Parent, the Borrower or any
such Restricted Subsidiary;

 

(d)                                 purchase money Liens upon or in any fixed or
capital assets to secure the purchase price or the cost of construction or
improvement of such fixed or capital assets or to secure Indebtedness incurred
solely for the purpose of financing the acquisition, construction or
improvement of such fixed or capital assets (including Liens securing any Capital Lease Obligations); provided, that (i) such
Lien secures Indebtedness permitted by Section 7.1(c), (ii) such
Lien attaches to such asset concurrently or within 90 days after the
acquisition, improvement or completion of the construction thereof; (iii) such
Lien does not extend to any other asset; and (iv) the Indebtedness secured
thereby does not exceed the cost of acquiring, constructing or improving such
fixed or capital assets;

 

(e)                                  any Lien (i) existing on any asset of
any Person at the time such Person becomes a Subsidiary of the Borrower, (ii) existing
on any asset of any Person at the time such Person is merged with or into the
Borrower or any Subsidiary of the Borrower or (iii) existing on any asset
prior to the acquisition thereof by the Borrower or any Subsidiary of the
Borrower; provided, that any such Lien was not created in the
contemplation of any of the foregoing and any such Lien secures only those
obligations which it secures on the date that such Person becomes a Subsidiary
or the date of such merger or the date of such acquisition; and

 

66

 

(f)                                    extensions, renewals, or replacements of any
Lien referred to in paragraphs (a) through (d) of this Section 7.2;
provided, that the principal amount of the Indebtedness secured thereby
is not increased and that any such extension, renewal or replacement is limited
to the assets originally encumbered thereby.

 

Section 7.3.                                Fundamental
Changes.

 

(a)                                  The
Parent and the Borrower will not, and will not permit any Restricted Subsidiary
to, merge into or consolidate into any other Person, or permit any other Person
to merge into or consolidate with it, or sell, lease, transfer or otherwise
dispose of (in a single transaction or a series of transactions) all or
substantially all of its assets (in each case, whether now owned or hereafter
acquired) or all or substantially all of the stock of any of its Restricted
Subsidiary (in each case, whether now owned or hereafter acquired) or liquidate or dissolve; provided, that if at the time thereof and immediately after giving
effect thereto, no Default or Event of Default shall have occurred and be
continuing (i) the Borrower may merge with a Person if the Borrower is the
surviving Person, (ii) any Subsidiary Loan Party may merge into another
Subsidiary Loan Party, (iii) the Parent and any Restricted Subsidiary may
merge with a Person if the Parent or such Restricted Subsidiary is the
surviving Person (unless the Borrower or another Subsidiary Loan Party is the
surviving Person), (iv) any Subsidiary Loan Party may sell, transfer,
lease or otherwise dispose of all or substantially all of its assets to the
Borrower or to a Subsidiary Loan Party and (v) any Subsidiary (other than
a Restricted Subsidiary) may liquidate or dissolve if the Borrower determines
in good faith that such liquidation or dissolution is in the best interests of
the Borrower and is not materially disadvantageous to the Lenders; provided,
that any such merger involving a Person that is not a wholly-owned Subsidiary
immediately prior to such merger shall not be permitted unless also permitted
by Section 7.4.

 

(b)                                 The Parent will not, and will not permit any
of its Subsidiaries to, engage in any business other than businesses of the
type conducted by the Parent and its Subsidiaries on December 31, 2004 and
businesses reasonably related thereto.

 

Section 7.4.                                Investments, Loans, Etc.  The
Parent and the Borrower will not, and will not permit any Restricted Subsidiary
to, purchase, hold or acquire (including pursuant to any merger with any Person
that was not a wholly-owned Subsidiary prior to such merger), any common stock,
evidence of indebtedness or other securities (including any option, warrant, or
other right to acquire any of the foregoing) of, make or permit to exist any
loans or advances to, Guarantee any obligations of, or make or permit to exist
any investment or any other interest in, any other Person (all of the foregoing
being collectively called “Investments”), or purchase or otherwise
acquire (in one transaction or a series of transactions) any assets of any
other Person that constitute a business unit, or create or form any Subsidiary,
except:

 

(a)                                  Investments (other than Permitted
Investments) existing on the date hereof and set forth on Schedule 7.4
(including Investments in Subsidiaries);

 

(b)                                 Permitted Investments;

 

(c)                                  Guarantees constituting Indebtedness
permitted by Section 7.1; provided, that the aggregate
principal amount of Indebtedness of the Borrower’s Subsidiaries that are not 

 

67

 

Subsidiary Loan Parties that
is Guaranteed by any Loan Party shall be subject to the limitation set forth in
clause (d) hereof;

 

(d)                                 Investments made by the Parent or the
Borrower in or to any Subsidiary and by any Subsidiary to the Borrower or in or
to another Subsidiary of the Borrower; provided, that the aggregate
amount of Investments by Loan Parties in or to, and Guarantees by Loan Parties
of Indebtedness of any Subsidiary that is not a Subsidiary Loan Party
(including all such Investments and Guarantees existing on the Closing Date)
shall not exceed $1,000,000 at any time
outstanding;

 

(e)                                  loans or advances to employees, officers or
directors of the Borrower or any Subsidiary of the Borrower in the ordinary
course of business for travel, relocation and related expenses; provided,
however, that the aggregate amount of all such loans and advances does
not exceed $500,000 at any time;

 

(f)                                    Hedging
Transactions permitted by Section 7.10;

 

(g)                                 Permitted
Acquisitions;

 

(h)                                 Permitted
UIC Cash Acquisitions and Permitted UIC Cash Investments in an aggregate amount not to exceed the amount of
UIC Cash in effect from time to time.

 

(i)                                     Permitted Other Investments, so long
as the aggregate amount invested in
Permitted Other Investments, plus the aggregate amount distributed as Permitted
Other Dividends pursuant to Section 7.5(e), does not exceed
$25,000,000;

 

(j)                                     Loans
made by the Borrower to the Parent to fund on a substantially simultaneous
basis Restricted Payments permitted under Section 7.5(d) and (e) and
Permitted Other Investments permitted under clause (i) above; and

 

(k)                                  Other Investments which in the aggregate do
not exceed $1,000,000 in any Fiscal Year.

 

Section 7.5.                                Restricted
Payments.  The
Parent and the Borrower will not, and will not permit any Restricted Subsidiary to, declare or make, or agree to pay or make, directly or
indirectly, any dividend on any class of its stock, or make any payment on
account of, or set apart assets for a sinking or other analogous fund for, the
purchase, redemption, retirement, defeasance or other acquisition of, any
shares of common stock or Indebtedness subordinated to the Obligations of the
Borrower or any Guarantee thereof or any options, warrants, or other rights to
purchase such common stock or such Indebtedness, whether now or hereafter
outstanding (each, a “Restricted Payment”), except for

 

(a)                                  dividends
payable by the Parent or the Borrower solely in shares of any class of its
common stock;

 

(b)                                 Restricted
Payments made by any Subsidiary of the Borrower to the Borrower or to another
Subsidiary, on at least a pro rata basis with any other shareholders if such
Subsidiary is not wholly owned by the Borrower and other wholly owned
Subsidiaries;

 

68

 

(c)                                  scheduled
quarterly dividends paid on the Capital Stock of the Parent and interest on
such subordinated Indebtedness, so long as no Default or Event of Default has
occurred and is continuing or would result therefrom;

 

(d)                                 Permitted
UIC Cash Dividends in an amount not to exceed the amount of UIC Cash then in
effect;

 

(e)                                  Permitted
Other Dividends, so long as the aggregate amount distributed as Permitted Other
Dividends, plus the aggregate amount invested in Permitted Other Investments
pursuant to Section 7.4(i), does not exceed $25,000,000; and

 

(f)                                    dividends
and distributions on, and redemptions and repurchases of, the Capital Stock of
the Borrower paid to the Parent to fund on a substantially simultaneous basis
Restricted Payments permitted under clause (d) and (e) above and
Permitted Other Investments permitted under Section 7.4(i) above.

 

Section 7.6.                                Sale of Assets.  The
Parent and the Borrower will not, and will not permit any Restricted Subsidiary
to, convey, sell, lease, assign, transfer or otherwise dispose of, any of its
assets, business or property, whether now owned or hereafter acquired, or, in
the case of any Subsidiary, issue or sell any shares of such Subsidiary’s
common stock to any Person other than the Parent, the Borrower or a Subsidiary
Loan Party (or to qualify directors if required by applicable law), except:

 

(a)                                  the sale or other disposition for fair market
value of obsolete or worn out property or other property not necessary for
operations disposed of in the ordinary course of business;

 

(b)                                 the sale of inventory and Permitted
Investments in the ordinary course of business; and

 

(c)                                  the sale by the Parent of all of the Capital
Stock of Detroit Stoker so long as the Parent and its Subsidiaries do not incur
any additional obligations (including, without limitation, any indemnification
obligations) in connection therewith, other than indemnification obligations
expressly permitted by Section 7.12.

 

Section 7.7.                                Transactions with Affiliates.  The
Parent and the Borrower will not, and will not permit Restricted Subsidiary to,
sell, lease or otherwise transfer any property or assets to, or purchase, lease
or otherwise acquire any property or assets from, or otherwise engage in any
other transactions with, any of its Affiliates, except (a) in the ordinary
course of business at prices and on terms and conditions not less favorable to
the Parent, the Borrower or such Restricted Subsidiary than could be obtained
on an arm’s-length basis from unrelated third parties, (b) transactions
between or among the Parent, the Borrower and any Subsidiary Loan Party not
involving any other Affiliates.

 

Section 7.8.                                Restrictive Agreements.  The
Parent and the Borrower will not, and will not permit any Restricted Subsidiary
to, directly or indirectly, enter into, incur or permit to exist any agreement
that prohibits, restricts or imposes any condition upon (a) the ability of
the Parent, the Borrower or any Restricted Subsidiary to create, incur or
permit any Lien upon 

 

69

 

any of its assets or
properties, whether now owned or hereafter acquired, or (b) the ability of
any Subsidiary of the Borrower to pay dividends or other distributions
with respect to its common stock, to make or repay loans or advances to the
Parent, the Borrower or any other Subsidiary of the Borrower, to Guarantee
Indebtedness of the Parent, the Borrower or any other Subsidiary of the
Borrower or to transfer any of its property or assets to the Parent, the
Borrower or any Subsidiary of the Borrower; provided, that (i) the
foregoing shall not apply to restrictions or conditions imposed by law or
by this Agreement or any other Loan Document, (ii) the foregoing
shall not apply to customary restrictions and conditions contained in
agreements relating to the sale of a Subsidiary pending such sale, provided
such restrictions and conditions apply only to the Subsidiary that is sold and
such sale is permitted hereunder, (iii) clause (a) shall not apply to
restrictions or conditions imposed by any agreement relating to secured
Indebtedness permitted by this Agreement if such restrictions and conditions
apply only to the property or assets securing such Indebtedness and (iv) clause
(a) shall not apply to customary provisions in leases restricting the
assignment thereof.

 

Section 7.9.                                Sale and Leaseback Transactions.  The
Parent and the Borrower will not, and will not permit any Restricted Subsidiary
to, enter into any arrangement, directly or indirectly, whereby it shall sell
or transfer any property (other than the Goose Creek Facility), real or
personal, used or useful in its business, whether now owned or hereinafter
acquired, and thereafter rent or lease such property or other property that it
intends to use for substantially the same purpose or purposes as the property sold
or transferred.

 

Section 7.10.                         Hedging Transactions.  The
Parent and the Borrower will not, and will not permit any Restricted Subsidiary
to, enter into any Hedging Transaction, other than Hedging Transactions entered
into in the ordinary course of business to hedge or mitigate risks to which the
Parent, the Borrower or any Subsidiary of the Borrower is exposed in the
conduct of its business or the management of its liabilities.  Solely for the avoidance of doubt, the Parent
and the Borrower acknowledge that a Hedging Transaction entered into for
speculative purposes or of a speculative nature (which shall be deemed to
include any Hedging Transaction under which the Parent, the Borrower or any
Restricted Subsidiary is or may become obliged to make any payment (i) in
connection with the purchase by any third party of any common stock or any
Indebtedness or (ii) as a result of changes in the market value of any
common stock or any Indebtedness) is not a Hedging Transaction entered into in
the ordinary course of business to hedge or mitigate risks.

 

Section 7.11.                         Amendment to Material Documents. The Parent and the Borrower will not, and
will not permit any Restricted Subsidiary to, amend, modify or waive any of its
rights in a manner materially adverse to the Lenders under (a) its
certificate of incorporation, bylaws or other organizational documents and (b) the
Convertible Notes or the Convertible Notes
Indenture.

 

Section 7.12.                         Indemnification Obligations. The Parent and the Borrower will not, and will not permit any
Restricted Subsidiary to, indemnify, guaranty or hold harmless any other Person
for any claims, losses, costs or expenses of Detroit Stoker, other than
indemnification provided by the Parent in connection with the sale of all or
any portion of the assets or Capital Stock of Detroit Stoker (i) for asbestos and other liabilities of Detroit
Stoker so
long as such indemnification is expressly limited in the aggregate to the
Capped Purchase Price 

 

70

 

Liability Amount, (ii) for liabilities other
than asbestos liability, to the extent such indemnification obligation is
customary and reasonable and in an amount expressly limited in the aggregate to
$2,000,000 and (iii) other non-monetary indemnification obligations to the
extent such indemnification is customary and reasonable in sales of assets or
equity generally.

 

Section 7.13.                         Accounting Changes.  The
Parent and Borrower will not, and will not permit any Restricted Subsidiary to,
make any significant change in accounting treatment or reporting practices,
except as required by GAAP, or change the fiscal year of the Borrower or of any
of its Subsidiaries, except to change the fiscal year of a Subsidiary to
conform its fiscal year to that of the Borrower.

 

Section 7.14.                         Capital
Expenditures.  The Parent and
Borrower will not, and will not permit any
Restricted Subsidiary to, make or commit to make any Capital
Expenditures other than (i) Permitted UIC Cash CapEx in an amount not to
exceed the amount of UIC Cash then in effect, and (ii) Capital
Expenditures of the Borrower in an aggregate amount not to exceed (A) $30,000,000
for the Fiscal Year ending December 31, 2005 and (B) $20,000,000 in
each Fiscal Year thereafter.

 

Section 7.15.                         Detroit
Stoker.  So long as Detroit
Stoker remains a Subsidiary of the Parent,

 

(a)                                  the
Parent shall cause Detroit Stoker to do
or cause to be done all things necessary to preserve, renew and maintain in
full force and effect its separate legal existence; and

 

(b)                                 the
Parent shall not permit Detroit Stoker to (i) make any Restricted Payment,
or (ii) enter into any transactions between the Parent or any of its other
Subsidiaries, on the one hand, and Detroit Stoker, on the other hand, except
loans made by Detroit Stoker to the Parent or any of its other Subsidiaries so
long as (1) such loans are on
commercially reasonable terms and conditions (including without limitation as
to pricing, amortization, covenants and defaults) that would be obtained on an
arm’s-length basis from unrelated third parties, (2) the proceeds
of such loans are used to finance capital expenditures, acquisitions and
Permitted Other Dividends to the extent permitted under Section 7.5(e),
but not working capital or other purposes, of the Parent or such other Subsidiaries,
(3) any loans to finance capital expenditures have level monthly or
quarterly amortization and fully amortize over the life of the asset acquired,
unless otherwise approved in writing by the Administrative Agent, and (4) any
loans to finance acquisitions or Permitted Other Dividends have level monthly
or quarterly amortization and fully amortize over a term of at least one year
and not more than seven years, unless otherwise approved in writing by the
Administrative Agent.

 

ARTICLE VIII

EVENTS OF DEFAULT

 

Section 8.1.                                Events of Default.  If
any of the following events (each an “Event of Default”) shall occur:

 

71

 

(a)                                  the Borrower shall fail to pay any principal
of any Loan or of any reimbursement obligation in respect of any LC
Disbursement when and as the same shall become due and payable, whether at the
due date thereof or at a date fixed for prepayment or otherwise; or

 

(b)                                 the Borrower shall fail to pay any interest
on any Loan or any fee or any other amount (other than an amount payable under
clause (a) of this Section 8.1) payable under this Agreement
or any other Loan Document, when and as the same shall become due and payable,
and such failure shall continue unremedied for a period of three (3) Business
Days; or

 

(c)                                  any representation or warranty made or deemed
made by or on behalf of the Parent or the Borrower or any of its Subsidiaries
in or in connection with this Agreement or any other Loan Document (including
the Schedules attached thereto) and any amendments or modifications hereof or
waivers hereunder, or in any certificate, report, financial statement or other
document submitted to the Administrative Agent or the Lenders by any Loan Party
or any representative of any Loan Party pursuant to or in connection with this
Agreement or any other Loan Document shall prove to be incorrect in any
material respect when made or deemed made or
submitted; or

 

(d)                                 the Parent or the Borrower shall fail to
observe or perform any covenant or obligation contained in Sections 5.1, 5.2,
or 5.3 (with respect to the Parent’s or the Borrower’s existence) or Articles
VI or VII; or

 

(e)                                  any Loan Party shall fail to observe or
perform any covenant or agreement contained in this Agreement (other than those
referred to in clauses (a), (b) and (d) above) or any other Loan
Document, and such failure shall remain unremedied for 30 days after the
earlier of (i) any officer of the Parent or the Borrower becomes aware of
such failure, or (ii) notice thereof shall have been given to the Borrower
by the Administrative Agent or any Lender; or

 

(f)                                    the Parent or any of its Subsidiaries
(whether as primary obligor or as guarantor or other surety) shall fail to pay
any principal of, or premium or interest on, any Material Indebtedness that is
outstanding, when and as the same shall become due and payable (whether at
scheduled maturity, required prepayment, acceleration, demand or otherwise),
and such failure shall continue after the applicable grace period, if any,
specified in the agreement or instrument evidencing or governing such
Indebtedness; or any other event shall occur or condition shall exist under any
agreement or instrument relating to such Indebtedness and shall continue after
the applicable grace period, if any, specified in such agreement or instrument,
if the effect of such event or condition is to accelerate, or permit the
acceleration of, the maturity of such Indebtedness; or any such Indebtedness
shall be declared to be due and payable, or required to be prepaid or redeemed
(other than by a regularly scheduled required prepayment or redemption),
purchased or defeased, or any offer to prepay, redeem, purchase or defease such
Indebtedness shall be required to be made, in each case prior to the stated
maturity thereof; or

 

(g)                                 any Loan Party, Detroit Stoker (so long as
Detroit Stoker remains a Subsidiary of the Parent) or any other Material
Subsidiary of the Parent shall (i) commence a voluntary case or other
proceeding or file any petition seeking liquidation, reorganization or other
relief under any federal, state or foreign bankruptcy, insolvency or other
similar law now or 

 

72

 

hereafter in effect or
seeking the appointment of a custodian, trustee, receiver, liquidator or other
similar official of it or any substantial part of its property, (ii) consent
to the institution of, or fail to contest in a timely and appropriate manner,
any proceeding or petition described in clause (i) of this Section 8.1,
(iii) apply for or consent to the appointment of a custodian, trustee,
receiver, liquidator or other similar official for such Loan Party, Detroit
Stoker (so long as Detroit Stoker remains a Subsidiary of the Parent) or any
other Material Subsidiary of the Parent or for a substantial part of its
assets, (iv) file an answer admitting the material allegations of a
petition filed against it in any such proceeding, (v) make a general
assignment for the benefit of creditors, or (vi) take any action for the
purpose of effecting any of the foregoing; or

 

(h)                                 an involuntary proceeding shall be commenced
or an involuntary petition shall be filed seeking (i) liquidation,
reorganization or other relief in respect of any Loan Party, Detroit Stoker (so
long as Detroit Stoker remains a Subsidiary of the Parent) or any other
Material Subsidiary of the Parent or its debts, or any substantial part of its
assets, under any federal, state or foreign bankruptcy, insolvency or other
similar law now or hereafter in effect or (ii) the appointment of a custodian,
trustee, receiver, liquidator or other similar official for the Parent or any
of its Subsidiaries or for a substantial part of its assets, and in any such
case, such proceeding or petition shall remain undismissed for a period of 60
days or an order or decree approving or ordering any of the foregoing shall be
entered; or

 

(i)                                     any Loan Party, Detroit Stoker (so long as
Detroit Stoker remains a Subsidiary of the Parent) or any other Material
Subsidiary of the Parent shall become unable to pay, shall admit in writing its
inability to pay, or shall fail to pay, its debts as they become due; or

 

(j)                                     an ERISA Event shall have occurred that, in
the good faith opinion of the Required Lenders, when taken together with other
ERISA Events that have occurred, would reasonably be expected to result in
liability to the Parent, the Borrower or any Subsidiaries of the Borrower
having a Material Adverse Effect; or

 

(k)                                  judgments or orders for the payment of money
greater than $1,000,000 in the aggregate excess of applicable insurance where
the insurer has acknowledged coverage and is financially sound, and after
giving effect to any other final judgment or order in effect reducing or
offsetting as a matter of law the amount that may be collected under such final
judgment(s) or order(s), and either (i) enforcement
proceedings shall have been commenced by any creditor upon such judgment or
order or (ii) there shall be a period of 30 consecutive days during
which a stay of enforcement of such judgment or order, by reason of a pending
appeal or otherwise, shall not be in effect; or

 

(l)                                     any non-monetary judgment or order shall be rendered against the Parent or
any of its Subsidiaries that would reasonably be expected to have a Material
Adverse Effect, and there shall be a period of 30 consecutive days during which
a stay of enforcement of such judgment or order, by reason of a pending appeal
or otherwise, shall not be in effect; or

 

(m)                               a Change in Control shall occur or exist;

 

73

 

(n)                                 any provision of any Guaranty Agreement shall
for any reason cease to be valid and binding on, or enforceable against, any
Guarantor, or any Guarantor shall so state in writing, or any Guarantor shall
seek to terminate its Guaranty Agreement;

 

(o)                                 any
Lien purported to be created under any Security Document shall fail or cease to
be, or shall be asserted by any Loan Party not to be, a valid and perfected
Lien on any Collateral, with the priority required by the applicable Security
Documents, except as a result of (i) the Administrative Agent’s failure to
take any action reasonably requested by Borrower in order to maintain a valid
and perfected Lien on any Collateral or (ii) any action taken by the
Administrative Agent to release any Lien on any Collateral; or

 

(p)                                 any
“Event of Default” shall have occurred and be continuing under any other Loan
Document; or

 

(q)                                 Net Asbestos Liability of the Parent and its
Subsidiaries as reflected in the quarterly or annual financial statements most
recently delivered by the Parent pursuant to Section 5.1 shall
exceed $20,000,000, excluding any non-cash increase in the Net Asbestos
Liability attributable solely to a change in the time horizon over which the
Net Asbestos Liability is forecast;

 

then,
and in every such event (other than an event with respect to the Parent or the
Borrower described in clause (g) or (h) of this Section 8.1)
and at any time thereafter during the continuance of such event, the
Administrative Agent may, and upon the written request of the Required Lenders
shall, by notice to the Borrower, take any or all of the following actions, at
the same or different times: (i) terminate the Commitments, whereupon the
Commitment of each Lender shall terminate immediately, (ii) declare the
principal of and any accrued interest on the Loans, and all other Obligations
owing hereunder, to be, whereupon the same shall become, due and payable
immediately, without presentment, demand, protest or other notice of any kind,
all of which are hereby waived by the Parent and the Borrower, (iii) exercise
all remedies contained in any other Loan Document, and (iv) exercise any
other remedies available at law or in equity; and that, if an Event of Default
specified in either clause (g) or (h) shall occur, the Commitments
shall automatically terminate and the principal of the Loans then outstanding,
together with accrued interest thereon, and all fees, and all other Obligations
shall automatically become due and payable, without presentment, demand,
protest or other notice of any kind, all of which are hereby waived by the
Parent and the Borrower.

 

Section 8.2.                                Application
of Proceeds from Collateral.  All
proceeds from each sale of, or other realization upon, all or any part of the
Collateral by the Administrative Agent or any of the Lenders after an Event of
Default arises shall be applied as follows:

 

(a)                                  first,
to the reimbursable expenses of the Administrative Agent incurred in connection
with such sale or other realization upon the Collateral, until the same shall
have been paid in full;

 

74

 

(b)                                 second,
to the fees and other reimbursable expenses of the Administrative Agent,
Swingline Lender and the Issuing Bank then due and payable pursuant to any of
the Loan Documents, until the same shall have been paid in full;

 

(c)                                  third,
to all reimbursable expenses, if any, of the Lenders then due and payable
pursuant to any of the Loan Documents, until the same shall have been paid in
full;

 

(d)                                 fourth,
to the fees due and payable under Section 2.13(b) and (c) of
the Credit Agreement and interest then due and payable under the terms of the
Credit Agreement, until the same shall have been paid in full;

 

(e)                                  fifth,
to the aggregate outstanding principal amount of the Revolving Loans, the LC
Exposure and the Net Mark-to-Market Exposure of the Borrower and its
Subsidiaries, to the extent secured by Liens, until the same shall have been
paid in full, allocated pro rata among the Lenders and any Affiliates of
Lenders that hold Net Mark-to-Market Exposure based on their respective pro
rata shares of the aggregate amount of such Revolving Loans, LC Exposure and
Net Mark-to-Market Exposure;

 

(f)                                    sixth,
to additional cash collateral for the aggregate amount of all outstanding
Letters of Credit until the aggregate amount of all cash collateral held by the
Administrative Agent pursuant to this Agreement is equal to 105% of the LC
Exposure after giving effect to the foregoing clause fifth; and

 

(g)                                 to
the extent any proceeds remain, to the Borrower.

 

All amounts allocated
pursuant to the foregoing clauses second through sixth to the
Lenders as a result of amounts owed to the Lenders under the Loan Documents
shall be allocated among, and distributed to, the Lenders pro rata based on
their respective Pro Rata Shares; provided,  however, that all
amounts allocated to that portion of the LC Exposure comprised of the aggregate
undrawn amount of all outstanding Letters of Credit pursuant to clause fifth
and sixth shall be distributed to the Administrative Agent, rather than
to the Lenders, and held by the Administrative Agent in an account in the name
of the Administrative Agent for the benefit of the Issuing Bank and the Lenders
as cash collateral for the LC Exposure, such account to be administered in accordance
with Section 2.21(g).

 

ARTICLE IX

THE ADMINISTRATIVE AGENT

 

Section 9.1.                                Appointment of Administrative
Agent.

 

(a)                                  Each Lender irrevocably appoints SunTrust
Bank as the Administrative Agent and authorizes it to take such actions on its
behalf and to exercise such powers as are delegated to the Administrative Agent
under this Agreement and the other Loan Documents, together with all such
actions and powers that are reasonably incidental thereto.  The Administrative Agent may perform any of
its duties hereunder or under the other Loan Documents by or through any one or
more sub-agents or attorneys-in-fact appointed by the 

 

75

 

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

 

(b)                                 The Issuing Bank shall act on behalf of the
Lenders with respect to any Letters of Credit issued by it and the documents
associated therewith until such time and except for so long as the
Administrative Agent may agree at the request of the Required Lenders to act
for the Issuing Bank with respect thereto; provided, that the Issuing Bank
shall have all the benefits and immunities (i) provided to the
Administrative Agent in this Article with respect to any acts taken or
omissions suffered by the Issuing Bank in connection with Letters of Credit
issued by it or proposed to be issued by it and the application and agreements
for letters of credit pertaining to the Letters of Credit as fully as if the
term “Administrative Agent” as used in this Article included the Issuing
Bank with respect to such acts or omissions and (ii) as additionally
provided in this Agreement with respect to the Issuing Bank.

 

Section 9.2.                                Nature of Duties of
Administrative Agent.  The Administrative Agent shall not have any
duties or obligations except those expressly set forth in this Agreement and
the other Loan Documents.  Without
limiting the generality of the foregoing, (a) the Administrative Agent
shall not be subject to any fiduciary or other implied duties, regardless of
whether a Default or an Event of Default has occurred and is continuing, (b) the
Administrative Agent shall not have any duty to take any discretionary action
or exercise any discretionary powers, except those discretionary rights and
powers expressly contemplated by the Loan Documents that the Administrative
Agent is required to exercise in writing by the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary under the
circumstances as provided in Section 10.2), and (c) except as
expressly set forth in the Loan Documents, the Administrative Agent shall not
have any duty to disclose, and shall not be liable for the failure to disclose,
any information relating to the Borrower or any of its Subsidiaries that is
communicated to or obtained by the Administrative Agent or any of its
Affiliates in any capacity.  The
Administrative Agent shall not be liable for any action taken or not taken by
it, its sub-agents or attorneys-in-fact with the consent or at the request of
the Required Lenders (or such other number or percentage of the Lenders as
shall be necessary under the circumstances as provided in Section 10.2)
or in the absence of its own gross negligence or willful misconduct.  The Administrative Agent shall not be
responsible for the negligence or misconduct of any sub-agents or
attorneys-in-fact selected by it with reasonable care.  The Administrative Agent shall not be deemed
to have knowledge of any Default or Event of Default unless and until written
notice thereof (which notice shall include an express reference to such event
being a “Default” or “Event of Default” hereunder) is given to the
Administrative Agent by the Borrower or any Lender, and the Administrative
Agent shall not be responsible for or have any duty to ascertain or inquire
into (i) any statement, warranty or representation made in or in
connection with any Loan Document, (ii) the contents of any certificate,
report or other document delivered hereunder or thereunder or in connection
herewith or therewith, (iii) the performance or observance of any of the
covenants, agreements, or other terms and conditions set forth in any Loan
Document, (iv) the validity, enforceability, effectiveness or genuineness
of any Loan Document or any other 

 

76

 

agreement, instrument or
document, or (v) the satisfaction of any condition set forth in Article III
or elsewhere in any Loan Document, other than to confirm receipt of items
expressly required to be delivered to the Administrative Agent.  The Administrative Agent may consult with
legal counsel (including counsel for the Borrower) concerning all matters
pertaining to such duties.

 

Section 9.3.                                Lack of Reliance on the
Administrative Agent.  Each of the Lenders, the Swingline Lender and
the Issuing Bank acknowledges that it has, independently and without reliance
upon the Administrative Agent or any other Lender and based on such documents
and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. 
Each of the Lenders, the Swingline Lender and the Issuing Bank also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it has deemed appropriate, continue to make its own decisions in
taking or not taking of any action under or based on this Agreement, any
related agreement or any document furnished hereunder or thereunder.

 

Section 9.4.                                Certain Rights of the
Administrative Agent.  If the Administrative Agent shall request
instructions from the Required Lenders with respect to any action or actions
(including the failure to act) in connection with this Agreement, the
Administrative Agent shall be entitled to refrain from such act or taking such
act, unless and until it shall have received instructions from such Lenders;
and the Administrative Agent shall not incur liability to any Person by reason
of so refraining.  Without limiting the
foregoing, no Lender shall have any right of action whatsoever against the
Administrative Agent as a result of the Administrative Agent acting or
refraining from acting hereunder in accordance with the instructions of the
Required Lenders where required by the terms of this Agreement.

 

Section 9.5.                                Reliance by Administrative Agent.  The
Administrative Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine
and to have been signed, sent or made by the proper Person.  The Administrative Agent may also rely upon
any statement made to it orally or by telephone and believed by it to be made
by the proper Person and shall not incur any liability for relying
thereon.  The Administrative Agent may
consult with legal counsel (including counsel for the Borrower), independent
public accountants and other experts selected by it and shall not be liable for
any action taken or not taken by it in accordance with the advice of such
counsel, accountants or experts.

 

Section 9.6.                                The Administrative Agent in its
Individual Capacity.  The bank serving as the Administrative Agent
shall have the same rights and powers under this Agreement and any other Loan
Document in its capacity as a Lender as any other Lender and may exercise or
refrain from exercising the same as though it were not the Administrative
Agent; and the terms “Lenders”, “Required Lenders”, “holders of Notes”, or any
similar terms shall, unless the context clearly otherwise indicates, include
the Administrative Agent in its individual capacity.  The bank acting as the Administrative Agent
and its Affiliates may accept deposits from, lend money to, and generally
engage in any kind of business with the Borrower or any Subsidiary or Affiliate
of the Borrower as if it were not the Administrative Agent hereunder.

 

77

 

Section 9.7.                                Successor Administrative Agent.

 

(a)                                  The Administrative Agent may resign at any
time by giving notice thereof to the Lenders and the Borrower.  Upon any such resignation, the Required
Lenders shall have the right to appoint a successor Administrative Agent,
subject to the approval by the Borrower provided that no Event of Default shall
exist at such time.  If no successor
Administrative Agent shall have been so appointed, and shall have accepted such
appointment within 30 days after the retiring Administrative Agent gives
notice of resignation, then the retiring Administrative Agent may, on behalf of
the Lenders and the Issuing Bank, appoint a successor Administrative Agent,
which shall be a commercial bank organized under the laws of the United States
of America or any state thereof or a bank which maintains an office in the
United States, having a combined capital and surplus of at least $500,000,000.

 

(b)                                 Upon the acceptance of its appointment as the
Administrative Agent hereunder by a successor, such successor Administrative
Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Administrative Agent, and the retiring
Administrative Agent shall be discharged from its duties and obligations under
this Agreement and the other Loan Documents. 
If within 45 days after written notice is given of the retiring
Administrative Agent’s resignation under this Section 9.7 no
successor Administrative Agent shall have been appointed and shall have
accepted such appointment, then on such 45th day (i) the
retiring Administrative Agent’s resignation shall become effective, (ii) the
retiring Administrative Agent shall thereupon be discharged from its duties and
obligations under the Loan Documents and (iii) the Required Lenders shall
thereafter perform all duties of the retiring Administrative Agent under the
Loan Documents until such time as the Required Lenders appoint a successor
Administrative Agent as provided above. 
After any retiring Administrative Agent’s resignation hereunder, the
provisions of this Article shall continue in effect for the benefit of
such retiring Administrative Agent and its representatives and agents in
respect of any actions taken or not taken by any of them while it was serving
as the Administrative Agent.

 

Section 9.8.                                Authorization to Execute other
Loan Documents.  Each Lender hereby authorizes the
Administrative Agent to execute on behalf of all Lenders all Loan Documents
other than this Agreement.

 

Section 9.9.                                Documentation
Agent; Syndication Agent.  Each
Lender hereby designates KeyBank National Association and PNC Bank, National
Association as Co-Documentation Agents and agrees that the Co-Documentation
Agents shall have no duties or obligations under any Loan Documents to any
Lender or any Loan Party.  Each Lender
hereby designates Citibank, F.S.B. as Syndication Agent and agrees that the
Syndication Agent shall have no duties or obligations under any Loan Documents
to any Lender or any Loan Party.

 

78

 

ARTICLE X

MISCELLANEOUS

 

Section 10.1.                         Notices.

 

(a)                                  Except in the case of notices and other
communications expressly permitted to be given by telephone, all notices and
other communications to any party herein to be effective shall be in writing
and shall be delivered by hand or overnight courier service, mailed by certified
or registered mail or sent by telecopy, as follows:

 

	
  To the Borrower:

  	
   

  	
  AAI Corporation

  
	
   

  	
   

  	
  124 Industry Lane

  
	
   

  	
   

  	
  Hunt Valley, MD 21030

  
	
   

  	
   

  	
  Attention: James H. Perry

  
	
   

  	
   

  	
  Telecopy Number: 410-683-6498

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Proskauer Rose, LLP

  
	
   

  	
   

  	
  One International
  Place

  
	
   

  	
   

  	
  Boston, MA 02110-2600

  
	
   

  	
   

  	
  Attention: Steven M. Ellis

  
	
   

  	
   

  	
  Telecopy Number: (617) 526-9899

  
	
   

  	
   

  	
   

  
	
  To the Parent:

  	
   

  	
  United Industrial Corporation

  
	
   

  	
   

  	
  124 Industry Lane

  
	
   

  	
   

  	
  Hunt Valley, MD 21030

  
	
   

  	
   

  	
  Attention: James H. Perry

  
	
   

  	
   

  	
  Telecopy Number: 410-683-6498

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Proskauer Rose, LLP

  
	
   

  	
   

  	
  One
  International Place

  
	
   

  	
   

  	
  Boston, MA 02110-2600

  
	
   

  	
   

  	
  Attention: Steven M. Ellis

  
	
   

  	
   

  	
  Telecopy Number: (617) 526-9899

  
	
   

  	
   

  	
   

  
	
  To the Administrative Agent

  	
   

  	
   

  
	
  or Swingline Lender:

  	
   

  	
  SunTrust Bank

  
	
   

  	
   

  	
  120 E. Baltimore Street,

  
	
   

  	
   

  	
  25th Floor

  
	
   

  	
   

  	
  Baltimore, Maryland 21202

  
	
   

  	
   

  	
  Attention: John Hehir

  
	
   

  	
   

  	
  Telecopy Number: (410) 986-1927

  

 

79

 

	
  With a copy to:

  	
   

  	
  SunTrust Bank

  
	
   

  	
   

  	
  Agency Services

  
	
   

  	
   

  	
  303 Peachtree Street, N. E./ 25th Floor

  
	
   

  	
   

  	
  Atlanta, Georgia 30308

  
	
   

  	
   

  	
  Attention: Ms. Doris Folsum

  
	
   

  	
   

  	
  Telecopy Number: (404) 658-4906

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  King & Spalding LLP

  
	
   

  	
   

  	
  191 Peachtree Street, N.E.

  
	
   

  	
   

  	
  Atlanta, Georgia 30303

  
	
   

  	
   

  	
  Attention: Carolyn Z. Alford

  
	
   

  	
   

  	
  Telecopy Number: (404) 572-5100

  
	
   

  	
   

  	
   

  
	
  To the Issuing Bank:

  	
   

  	
  SunTrust Bank

  
	
   

  	
   

  	
  25 Park Place, N. E./Mail Code 3706

  
	
   

  	
   

  	
  Atlanta, Georgia 30303

  
	
   

  	
   

  	
  Attention: John Conley

  
	
   

  	
   

  	
  Telecopy Number: (404) 588-8129

  
	
   

  	
   

  	
   

  
	
  To the Swingline Lender:

  	
   

  	
  SunTrust Bank

  
	
   

  	
   

  	
  Agency Services

  
	
   

  	
   

  	
  303 Peachtree Street, N.E./25th Floor

  
	
   

  	
   

  	
  Atlanta, Georgia 30308

  
	
   

  	
   

  	
  Attention: Ms. Doris Folsum

  
	
   

  	
   

  	
  Telecopy Number: (404) 658-4906

  
	
   

  	
   

  	
   

  
	
  To any other Lender:

  	
   

  	
  the address set forth in the Administrative Questionnaire or the
  Assignment and Acceptance Agreement executed by such Lender

  

 

Any party hereto may change its address or telecopy
number for notices and other communications hereunder by notice to the other
parties hereto.  All such notices and
other communications shall, when transmitted by overnight delivery, or faxed,
be effective when delivered for overnight (next-day) delivery, or transmitted
in legible form by facsimile machine, respectively, or if mailed, upon the
third Business Day after the date deposited into the mail or if delivered, upon
delivery; provided, that notices delivered to the Administrative Agent, the
Issuing Bank or the Swingline Bank shall not be effective until actually
received by such Person at its address specified in this Section 10.1.

 

(b)                                 Any agreement of the Administrative Agent and
the Lenders herein to receive certain notices by telephone or facsimile is
solely for the convenience and at the request of the Borrower.  The Administrative Agent and the Lenders
shall be entitled to rely on the authority of any Person purporting to be a
Person authorized by the Borrower to give such notice and the Administrative
Agent and Lenders shall not have any liability to the Borrower or other 

 

80

 

Person on account of any
action taken or not taken by the Administrative Agent or the Lenders in
reliance upon such telephonic or facsimile notice.  The obligation of the Borrower to repay the
Loans and all other Obligations hereunder shall not be affected in any way or
to any extent by any failure of the Administrative Agent and the Lenders to
receive written confirmation of any telephonic or facsimile notice or the
receipt by the Administrative Agent and the Lenders of a confirmation which is
at variance with the terms understood by the Administrative Agent and the Lenders
to be contained in any such telephonic or facsimile notice.

 

Section 10.2.                         Waiver; Amendments.

 

(a)                                  No
failure or delay by the Administrative Agent, the Issuing Bank or any Lender in
exercising any right or power hereunder or any other Loan Document, and no
course of dealing between the Borrower and the Administrative Agent or any
Lender, shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power or any
abandonment or discontinuance of steps to enforce such right or power, preclude
any other or further exercise thereof or the exercise of any other right or
power hereunder or thereunder.  The
rights and remedies of the Administrative Agent, the Issuing Bank and the
Lenders hereunder and under the other Loan Documents are cumulative and are not
exclusive of any rights or remedies provided by law.  No waiver of any provision of this Agreement
or any other Loan Document or consent to any departure by the Borrower
therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section 10.2, and then such waiver or
consent shall be effective only in the specific instance and for the purpose
for which given.  Without limiting the
generality of the foregoing, the making of a Loan or the issuance of a Letter
of Credit shall not be construed as a waiver of any Default or Event of
Default, regardless of whether the Administrative Agent, any Lender or the
Issuing Bank may have had notice or knowledge of such Default or Event of
Default at the time.

 

(b)                                 No
amendment or waiver of any provision of this Agreement or the other Loan
Documents, nor consent to any departure by the Borrower therefrom, shall in any
event be effective unless the same shall be in writing and signed by the
Borrower and the Required Lenders or the Borrower and the Administrative Agent
with the consent of the Required Lenders and then such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given; provided, that no amendment or waiver shall: (i) increase
the Commitment of any Lender without the written consent of such Lender, (ii) reduce
the principal amount of any Loan or LC Disbursement or reduce the rate of
interest thereon, or reduce any fees payable hereunder, without the written
consent of each Lender affected thereby, (iii) postpone the date fixed for
any payment of any principal of, or interest on, any Loan or LC Disbursement or
interest thereon or any fees hereunder or reduce the amount of, waive or excuse
any such payment, or postpone the scheduled date for the termination or
reduction of any Commitment, without the written consent of each Lender
affected thereby, (iv) change Section 2.20(b) or (c) in
a manner that would alter the pro rata sharing of payments required thereby,
without the written consent of each Lender, (v) change any of the
provisions of this Section 10.2 or the definition of “Required
Lenders” or any other provision hereof specifying the number or percentage of
Lenders which are required to waive, amend or modify any rights hereunder or
make any determination or grant any consent hereunder, without the consent of
each Lender; (vi) release any guarantor or limit the liability of any such
guarantor under any guaranty agreement, without the written consent of each
Lender; (vii) release all or substantially all collateral (if any) 

 

81

 

securing any of the Obligations, without the written
consent of each Lender; provided further, that no such agreement shall
amend, modify or otherwise affect the rights, duties or obligations of the
Administrative Agent, the Swingline Bank or the Issuing Bank without the prior
written consent of such Person. 
Notwithstanding anything contained herein to the contrary, this
Agreement may be amended and restated without the consent of any Lender (but
with the consent of the Borrower and the Administrative Agent) if, upon giving
effect to such amendment and restatement, such Lender shall no longer be a
party to this Agreement (as so amended and restated), the Commitments of such
Lender shall have terminated (but such Lender shall continue to be entitled to
the benefits of Sections 2.17, 2.18, 2.19 and 10.3),
such Lender shall no other commitment or other obligation hereunder and shall
have been paid in full all principal, interest and other amounts owing to it or
accrued for its account under this Agreement.

 

Section 10.3.                         Expenses; Indemnification.

 

(a)                                  The
Parent and the Borrower shall jointly and severally pay (i) all reasonable,
out-of-pocket costs and expenses of the Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements
of counsel for the Administrative Agent and its Affiliates, in connection with
the syndication of the credit facilities provided for herein, the preparation
and administration of the Loan Documents and any amendments, modifications or
waivers thereof (whether or not the transactions contemplated in this Agreement
or any other Loan Document shall be consummated), (ii) all reasonable
out-of-pocket expenses incurred by the Issuing Bank in connection with the
issuance, amendment, renewal or extension of any Letter of Credit or any demand
for payment thereunder and (iii) all out-of-pocket costs and expenses
(including, without limitation, the reasonable fees, charges and disbursements
of outside counsel and the allocated cost of inside counsel) incurred by the
Administrative Agent, the Issuing Bank or any Lender in connection with the
enforcement or protection of its rights in connection with this Agreement,
including its rights under this Section 10.3, or in connection with
the Loans made or any Letters of Credit issued hereunder, including all such
out-of-pocket expenses incurred during any workout, restructuring or negotiations
in respect of such Loans or Letters of Credit.

 

(b)                                 The
Parent and the Borrower shall jointly and severally indemnify the
Administrative Agent (and any sub-agent thereof), each Lender and the Issuing
Bank, and each Related Party of any of the foregoing Persons (each such Person
being called an “Indemnitee”) against, and hold each Indemnitee harmless
from, any and all losses, claims, damages, liabilities and related expenses
(including the fees, charges and disbursements of any counsel for any Indemnitee),
and shall indemnify and hold harmless each Indemnitee from all fees and time
charges and disbursements for attorneys who may be employees of any Indemnitee,
incurred by any Indemnitee or asserted against any Indemnitee by any third
party or by the Borrower or any Restricted Subsidiary arising out of, in
connection with, or as a result of (i) being a party to this Agreement,
any other Loan Document or any agreement or instrument contemplated hereby or
thereby, the performance by the parties hereto of their respective obligations
hereunder or thereunder or the consummation of the transactions contemplated
hereby or thereby, (ii) any Loan or Letter of Credit or the use or
proposed use of the proceeds therefrom (including any refusal by the Issuing
Bank to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms
of such Letter of Credit), (iii) any actual or alleged presence or Release
of Hazardous Materials on 

 

82

 

or from any property owned or operated by the Parent
or the Borrower or any of its Subsidiaries, or any Environmental Liability
related in any way to the actions of the Parent or the Borrower or any of its Subsidiaries,
or (iv) any actual or prospective claim, litigation, investigation or
proceeding relating to any of the foregoing, whether based on contract, tort or
any other theory, whether brought by a third party or by the Parent, the
Borrower or any Restricted Subsidiary, and regardless of whether any Indemnitee
is a party thereto, provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted (x) from the
gross negligence or willful misconduct of such Indemnitee, or (y) from a good
faith, bona fide claim brought by the Parent, the Borrower or any Restricted Subsidiary
against an Indemnitee for material breach of such Indemnitee’s obligations
hereunder or under any other Loan Document.

 

(c)                                  The Borrower shall pay, and hold the
Administrative Agent and each of the Lenders harmless from and against, any and
all present and future stamp, documentary, and other similar taxes with respect
to this Agreement and any other Loan Documents, any collateral described
therein, or any payments due thereunder, and save the Administrative Agent and
each Lender harmless from and against any and all liabilities with respect to
or resulting from any delay or omission to pay such taxes.

 

(d)                                 To the extent that the Borrower fails to pay
any amount required to be paid to the Administrative Agent, the Issuing Bank or
the Swingline Lender under clauses (a), (b) or (c) hereof, each
Lender severally agrees to pay to the Administrative Agent, the Issuing Bank or
the Swingline Lender, as the case may be, such Lender’s Pro Rata Share
(determined as of the time that the unreimbursed expense or indemnity payment
is sought) of such unpaid amount; provided, that the unreimbursed
expense or indemnified payment, claim, damage, liability or related expense, as
the case may be, was incurred by or asserted against the Administrative Agent,
the Issuing Bank or the Swingline Lender in its capacity as such.

 

(e)                                  To the extent permitted by applicable law,
the Borrower shall not assert, and hereby waives, any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or
punitive damages (as opposed to actual or direct damages) arising out of, in
connection with or as a result of, this Agreement or any agreement or
instrument contemplated hereby, the transactions contemplated therein, any Loan
or any Letter of Credit or the use of proceeds thereof.

 

(f)                                    All amounts due under this Section 10.3
shall be payable promptly after written demand therefor.

 

Section 10.4.                         Successors and Assigns.

 

(a)                                  The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted
hereby, except that the Borrower may not assign or otherwise transfer any of
its rights or obligations hereunder without the prior written consent of the
Administrative Agent and each Lender, and no Lender may assign or otherwise
transfer any of its rights or obligations hereunder except (i) to an
assignee in accordance with the provisions of paragraph (b) of this
Section, (ii) by way of 

 

83

 

participation in accordance with the provisions of
paragraph (d) of this Section or (iii) by way of pledge or
assignment of a security interest subject to the restrictions of paragraph (f) of
this Section (and any other attempted assignment or transfer by any party
hereto shall be null and void).  Nothing
in this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns
permitted hereby, Participants to the extent provided in paragraph (d) of
this Section and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

 

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

 

(i)  Minimum Amounts.

 

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

 

(B) in any case not
described in paragraph (b)(i)(A) of this Section, the aggregate amount of
the Commitment (which for this purpose includes Loans and Revolving Credit
Exposure outstanding thereunder) or, if the applicable Commitment is not then
in effect, the principal outstanding balance of the Loans and Revolving Credit
Exposure of the assigning Lender subject to each such assignment (determined as
of the date the Assignment and Acceptance with respect to such assignment is
delivered to the Administrative Agent or, if “Trade Date” is specified in the
Assignment and Acceptance, as of the Trade Date) shall not be less than
$1,000,000, unless each of the Administrative Agent and, so long as no Event of
Default has occurred and is continuing, the Borrower otherwise consents (each
such consent not to be unreasonably withheld or delayed).

 

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

 

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

 

(A) the consent of the
Borrower (such consent not to be unreasonably withheld or delayed) shall be
required unless (x) an Event of Default has occurred
and is continuing at the time of such assignment or (y) such assignment is to a
Lender, an Affiliate of a Lender or an Approved Fund;

 

84

 

(B) the consent of the
Administrative Agent (such consent not to be unreasonably withheld or delayed)
shall be required for assignments to a Person that is not a Lender with a
Commitment; and

 

(C) the consent of the
Issuing Bank (such consent not to be unreasonably withheld or delayed) shall be
required for any assignment that increases the obligation of the assignee to
participate in exposure under one or more Letters of Credit (whether or not
then outstanding), and the consent of the Swingline Lender (such consent not to
be unreasonably withheld or delayed) shall be required for any assignment in
respect of the Revolving Credit Commitments.

 

(iv)  Assignment and
Acceptance.  The parties to each
assignment shall deliver to the Administrative Agent (A) a duly executed
Assignment and Acceptance, (B) a processing and recordation fee of $1,000, (C) an Administrative Questionnaire unless the
assignee is already a Lender and (D) the documents required under this Section 10.4
if such assignee is a Foreign Lender.

 

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

 

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

 

Subject
to acceptance and recording thereof by the Administrative Agent pursuant to
paragraph (c) of this Section 10.4, from and after the
effective date specified in each Assignment and Acceptance, the assignee
thereunder shall be a party to this Agreement and, to the extent of the
interest assigned by such Assignment and Acceptance, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Acceptance, be released from its obligations under this Agreement (and, in the
case of an Assignment and Acceptance covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto) but shall continue to be entitled to the benefits of
Sections 2.17, 2.18, 2.19 and 10.3 with
respect to facts and circumstances occurring prior to the effective date of
such assignment.  Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does
not comply with this paragraph shall be treated for purposes of this Agreement
as a sale by such Lender of a participation in such rights and obligations in
accordance with paragraph (d) of this Section 10.4.

 

(c)                                  The
Administrative Agent, acting solely for this purpose as an agent of the
Borrower, shall maintain at one of its offices in Atlanta, Georgia a copy of each
Assignment and Acceptance delivered to it and a register for the recordation of
the names and addresses of the Lenders, and the Commitments of, and principal
amount of the Loans and Revolving Credit Exposure owing to, each Lender
pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent and the Lenders may
treat each Person whose name is recorded in the Register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the 

 

85

 

contrary.  The
Register shall be available for inspection by the Borrower and any Lender, at
any reasonable time and from time to time upon reasonable prior notice.

 

(d)                                 Any
Lender may at any time, without the consent of, or notice to, the Borrower, the
Administrative Agent, the Swingline Bank or the Issuing Bank sell
participations to any Person (other than a natural person, the Borrower or any
of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in
all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans owing
to it); provided that (i) such Lender’s obligations under this
Agreement shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (iii) the Borrower, the Administrative Agent, the Lenders, Issuing
Bank and Swingline Lender shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this
Agreement.

 

(e)                                  Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision
of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver with respect to the following to
the extent affecting such Participant:  (i) increase
the Commitment of any Lender without the written consent of such Lender, (ii) reduce
the principal amount of any Loan or LC Disbursement or reduce the rate of
interest thereon, or reduce any fees payable hereunder, without the written
consent of each Lender affected thereby, (iii) postpone the date fixed for
any payment of any principal of, or interest on, any Loan or LC Disbursement or
interest thereon or any fees hereunder or reduce the amount of, waive or excuse
any such payment, or postpone the scheduled date for the termination or
reduction of any Commitment, without the written consent of each Lender
affected thereby, (iv) change Section 2.20(b) or (c) in
a manner that would alter the pro rata sharing of payments required thereby,
without the written consent of each Lender, (v) change any of the
provisions of this Section 10.4 or the definition of “Required
Lenders” or any other provision hereof specifying the number or percentage of
Lenders which are required to waive, amend or modify any rights hereunder or
make any determination or grant any consent hereunder, without the consent of
each Lender; (vi) release any guarantor or limit the liability of any such
guarantor under any guaranty agreement without the written consent of each
Lender except to the extent such release is expressly provided under the terms
of the Guaranty Agreement; or (vii) release all or substantially all
collateral (if any) securing any of the Obligations.  Subject to paragraph (e) of this Section 10.4,
the Borrower agrees that each Participant shall be entitled to the benefits of
Sections 2.17, 2.18, and 2.19 to the same extent as if it
were a Lender and had acquired its interest by assignment pursuant to paragraph
(b) of this Section 10.4. 
To the extent permitted by law, each Participant also shall be entitled
to the benefits of Section 10.7 
as though it were a Lender, provided such Participant agrees to be
subject to Section 2.19 as though it were a Lender.

 

(f)                                    A
Participant shall not be entitled to receive any greater payment under Section 2.17
and Section 2.19 than the applicable Lender would have been
entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the
Borrower’s prior written consent.  A
Participant that would be a Foreign Lender if it were a Lender shall not be
entitled to the benefits of Section 2.20 unless

 

86

 

the Borrower is notified of the participation sold to
such Participant and such Participant agrees, for the benefit of the Borrower,
to comply with Section 2.19(e) as though it were a Lender.

 

(g)                                 Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such
Lender, including without limitation any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided that no such pledge or
assignment shall release such Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

 

Section 10.5.                         Governing Law; Jurisdiction;
Consent to Service of Process.

 

(a)                                  This Agreement and the other Loan Documents
shall be construed in accordance with and be governed by the law of the State
of New York.

 

(b)                                 Each party to this Agreement hereby irrevocably
and unconditionally submits, for itself and its property, to the non-exclusive
jurisdiction of the United States District Court of the Southern District of
New York, and of any state court of the State of Supreme Court of the State of
New York sitting in New York county and any appellate court from any thereof,
in any action or proceeding arising out of or relating to this Agreement or any
other Loan Document or the transactions contemplated hereby or thereby, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such New York state
court or, to the extent permitted by applicable law, such Federal court.  Each of the parties hereto agrees that a
final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.  Nothing in this
Agreement or any other Loan Document shall affect any right that the
Administrative Agent, the Issuing Bank or any Lender may otherwise have to
bring any action or proceeding relating to this Agreement or any other Loan
Document against the Borrower or its properties in the courts of any
jurisdiction.

 

(c)                                  Each party to this Agreement irrevocably and
unconditionally waives any objection which it may now or hereafter have to
the laying of venue of any such suit, action or proceeding described in
paragraph (b) of this Section 10.5 and brought in any court
referred to in paragraph (b) of this Section 10.5.  Each of the parties hereto irrevocably
waives, to the fullest extent permitted by applicable law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such
court.

 

(d)                                 Each party to this Agreement irrevocably
consents to the service of process in the manner provided for notices in Section 10.1.  Nothing in this Agreement or in any other
Loan Document will affect the right of any party hereto to serve process in any
other manner permitted by law.

 

Section 10.6.                         WAIVER OF JURY TRIAL.  EACH
PARTY HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY 

 

87

 

OR THEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY). 
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

 

Section 10.7.                         Right of Setoff.  In
addition to any rights now or hereafter granted under applicable law and not by
way of limitation of any such rights, each Lender and the Issuing Bank shall
have the right, at any time or from time to time upon the occurrence and during
the continuance of an Event of Default, without prior notice to the Borrower,
any such notice being expressly waived by the Borrower to the extent permitted
by applicable law, to set off and apply against all deposits (general or
special, time or demand, provisional or final) of the Borrower at any time held
or other obligations at any time owing by such Lender and the Issuing Bank to
or for the credit or the account of the Borrower against any and all
Obligations held by such Lender or the Issuing Bank, as the case may be,
irrespective of whether such Lender or the Issuing Bank shall have made demand
hereunder and although such Obligations may be unmatured.  Each Lender and the Issuing Bank agree
promptly to notify the Administrative Agent and the Borrower after any such
set-off and any application made by such Lender and the Issuing Bank, as the
case may be; provided, that the failure to give such notice shall not
affect the validity of such set-off and application.

 

Section 10.8.                         Counterparts; Integration.  This
Agreement may be executed by one or more of the parties to this Agreement on
any number of separate counterparts (including by telecopy), and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.  This Agreement, the Fee Letter,
the other Loan Documents, and any separate letter agreement(s) relating to any
fees payable to the Administrative Agent constitute the entire agreement among
the parties hereto and thereto regarding the subject matters hereof and thereof
and supersede all prior agreements and understandings, oral or written,
regarding such subject matters.

 

Section 10.9.                         Survival.  All
covenants, agreements, representations and warranties made by the Borrower
herein and in the certificates or other instruments delivered in connection
with or pursuant to this Agreement shall be considered to have been relied upon
by the other parties hereto and shall survive the execution and delivery of
this Agreement and the making of any Loans and issuance of any Letters of
Credit, regardless of any investigation made by any such other party or on its
behalf and notwithstanding that the Administrative Agent, the Issuing Bank or
any Lender may have had notice or knowledge of any Default or incorrect
representation or warranty at the time any credit is extended hereunder, and shall
continue in full force and effect as long as the principal of or any accrued
interest on any Loan or any fee or any other amount payable under this
Agreement is outstanding and unpaid or any Letter of Credit is outstanding and
so long as the Commitments have not expired or terminated.  The provisions of Sections 2.17, 2.18,
2.19, and 10.3 and Article IX shall survive and
remain in full force and effect regardless of the consummation of the
transactions contemplated hereby, the repayment of 

 

88

 

the Loans, the expiration or
termination of the Letters of Credit and the Commitments or the termination of
this Agreement or any provision hereof. 
All representations and warranties made herein, in the certificates,
reports, notices, and other documents delivered pursuant to this Agreement
shall survive the execution and delivery of this Agreement and the other Loan
Documents, and the making of the Loans and the issuance of the Letters of
Credit.

 

Section 10.10.                  Severability.  Any
provision of this Agreement or any other Loan Document held to be illegal,
invalid or unenforceable in any jurisdiction, shall, as to such jurisdiction,
be ineffective to the extent of such illegality, invalidity or unenforceability
without affecting the legality, validity or enforceability of the remaining
provisions hereof or thereof; and the illegality, invalidity or
unenforceability of a particular provision in a particular jurisdiction shall
not invalidate or render unenforceable such provision in any other
jurisdiction.

 

Section 10.11.                  Confidentiality.  Each
of the Administrative Agent, the Issuing Bank and each Lender agrees to take
normal and reasonable precautions to maintain the confidentiality of any
information designated in writing as confidential and provided to it by the
Borrower or any Subsidiary, except that such information may be disclosed (i) to
any Related Party of the Administrative Agent, the Issuing Bank or any such
Lender, including without limitation accountants, legal counsel and other
advisors, (ii) to the extent required by applicable laws or regulations or
by any subpoena or similar legal process, (iii) to the extent requested by
any regulatory agency or authority, (iv) to the extent that such
information becomes publicly available other than as a result of a breach of
this Section 10.11, or which becomes available to the
Administrative Agent, the Issuing Bank, any Lender or any Related Party of any
of the foregoing on a non-confidential basis from a source other than the
Borrower, (v) in connection with the exercise of any remedy hereunder or
any suit, action or proceeding relating to this Agreement or the enforcement of
rights hereunder, and (ix) subject to provisions substantially similar to
this Section 10.11, to any actual or prospective assignee or
Participant, or (vi) with the consent of the Borrower.  Any Person required to maintain the
confidentiality of any information as provided for in this Section 10.11
shall be considered to have complied with its obligation to do so if such
Person has exercised the same degree of care to maintain the confidentiality of
such information as such Person would accord its own confidential information.

 

Section 10.12.                  Interest Rate Limitation. 
Notwithstanding anything herein to the contrary, if at any time the
interest rate applicable to any Loan, together with all fees, charges and other
amounts which may be treated as interest on such Loan under applicable law
(collectively, the “Charges”), shall exceed the maximum lawful rate of
interest (the “Maximum Rate”) which may be contracted for, charged,
taken, received or reserved by a Lender holding such Loan in accordance with
applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges that would
have been payable in respect of such Loan but were not payable as a result of
the operation of this Section 10.12 shall be cumulated and the
interest and Charges payable to such Lender in respect of other Loans or
periods shall be increased (but not above the Maximum Rate therefor) until such
cumulated amount, together with interest thereon at the Federal Funds Rate to
the date of repayment, shall have been received by such Lender.

 

89

 

Section 10.13.                  Waiver of Effect of Corporate
Seal.  The
Borrower represents and warrants that neither it nor any Restricted Subsidiary
is required to affix its corporate seal to this Agreement or any other Loan
Document pursuant to any requirement of law or regulation, agrees that this
Agreement is delivered by Borrower under seal and waives any shortening of the
statute of limitations that may result from not affixing the corporate seal to
this Agreement or such other Loan Documents.

 

Section 10.14.                  Patriot
Act.   The Administrative Agent
and each Lender hereby notifies the Loan Parties that pursuant to the
requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the “Patriot Act”), it is required to
obtain, verify and record information that identifies each Loan Party, which
information includes the name and address of such Loan Party and other
information that will allow such Lender or the Administrative Agent, as
applicable, to identify such Loan Party in accordance with the Patriot
Act.  Each Loan Party shall, and shall
cause each of its Subsidiaries to, provide to the extent commercially
reasonable, such information and take such other actions as are reasonably
requested by the Administrative Agent or any Lender in order to assist the
Administrative Agent and the Lenders in maintaining compliance with the Patriot Act.

 

(remainder of page left intentionally blank)

 

90

 

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

 

	
   

  	
  AAI CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ James H. Perry

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James H. Perry

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Chief Financial

  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  UNITED INDUSTRIAL CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ James H. Perry

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James H. Perry

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Chief Financial

  Officer

  
						

 

[SIGNATURE PAGE TO

REVOLVING CREDIT AGREEMENT]

 

 

	
   

  	
  SUNTRUST BANK

  
	
   

  	
  as Administrative Agent, as Issuing Bank, as 

  Swingline Lender and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  CITIBANK, F.S.B.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  KEYBANK NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  PNC BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  COMMERCE BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  PROVIDENT BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

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