Document:

Exhibit
10.3

Execution Copy

 

 

MASTER RECEIVABLES
PURCHASE AGREEMENT

 

between

 

HOUSEHOLD
AUTOMOTIVE FINANCE CORPORATION,

as Seller

and

 

HOUSEHOLD AUTO
RECEIVABLES CORPORATION,

as Purchaser

 

 

 

 

 

 

 

dated as of

November 18,
2002

 

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  	
   

  
	
  ARTICLE I   DEFINITIONS

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.1

  	
   

  	
  General

  	
   

  	
  1

  	
   

  
	
  SECTION 1.2

  	
   

  	
  Specific Terms

  	
   

  	
  1

  	
   

  
	
  SECTION 1.3

  	
   

  	
  Other Definitional
  Provisions.

  	
   

  	
  2

  	
   

  
	
  SECTION 1.4

  	
   

  	
  Certain References

  	
   

  	
  2

  	
   

  
	
  SECTION 1.5

  	
   

  	
  No Recourse

  	
   

  	
  3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II   CONVEYANCE
  OF THE RECEIVABLES AND THE OTHER CONVEYED PROPERTY

  	
   

  	
  3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.1

  	
   

  	
  Purchase

  	
   

  	
  3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III   REPRESENTATIONS
  AND WARRANTIES

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.1

  	
   

  	
  Representations and
  Warranties of Seller

  	
   

  	
  5

  	
   

  
	
  SECTION 3.2

  	
   

  	
  Representations and
  Warranties of HARC

  	
   

  	
  7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV   COVENANTS
  OF SELLER

  	
   

  	
  8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.1

  	
   

  	
  Seller’s Covenants

  	
   

  	
  8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V   REPURCHASES

  	
   

  	
  9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.1

  	
   

  	
  Repurchase of Receivables
  Upon Breach of Warranty

  	
   

  	
  9

  	
   

  
	
  SECTION 5.2

  	
   

  	
  Reassignment of
  Repurchased Receivables

  	
   

  	
  10

  	
   

  
	
  SECTION 5.3

  	
   

  	
  Waivers

  	
   

  	
  10

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI   MISCELLANEOUS

  	
   

  	
  11

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.1

  	
   

  	
  Liability of Seller

  	
   

  	
  11

  	
   

  
	
  SECTION 6.2

  	
   

  	
  Amendment

  	
   

  	
  11

  	
   

  
	
  SECTION 6.3

  	
   

  	
  GOVERNING LAW

  	
   

  	
  11

  	
   

  
	
  SECTION 6.4

  	
   

  	
  Notices

  	
   

  	
  11

  	
   

  
	
  SECTION 6.5

  	
   

  	
  Severability of
  Provisions

  	
   

  	
  11

  	
   

  
	
  SECTION 6.6

  	
   

  	
  Assignment

  	
   

  	
  11

  	
   

  
	
  SECTION 6.7

  	
   

  	
  Acknowledgment and
  Agreement of Seller

  	
   

  	
  12

  	
   

  
	
  SECTION 6.8

  	
   

  	
  Further Assurances

  	
   

  	
  12

  	
   

  
	
  SECTION 6.9

  	
   

  	
  No Waiver; Cumulative
  Remedies

  	
   

  	
  12

  	
   

  
	
  SECTION 6.10

  	
   

  	
  Counterparts

  	
   

  	
  12

  	
   

  
	
  SECTION 6.11

  	
   

  	
  Binding Effect;
  Third-Party Beneficiaries

  	
   

  	
  12

  	
   

  
	
  SECTION 6.12

  	
   

  	
  Merger and Integration

  	
   

  	
  13

  	
   

  
	
  SECTION 6.13

  	
   

  	
  Heading

  	
   

  	
  13

  	
   

  
	
  SECTION 6.14

  	
   

  	
  Schedules and Exhibits

  	
   

  	
  13

  	
   

  
	
  SECTION 6.15

  	
   

  	
  Survival of
  Representations and Warranties

  	
   

  	
  13

  	
   

  
	
  SECTION 6.16

  	
   

  	
  Nonpetition Covenant

  	
   

  	
  13

  	
   

  

 

 i
 

 

EXHIBITS

EXHIBIT A                     Form of Receivables
Purchase Agreement Supplement

SCHEDULE A                 Schedule of Related Master Sale
and Servicing Agreements

 ii

 

THIS MASTER RECEIVABLES PURCHASE AGREEMENT, dated as
of November 18, 2002, executed between Household Auto Receivables
Corporation, a Nevada corporation, as purchaser (“HARC”) and Household
Automotive Finance Corporation, a Delaware corporation, as seller (“Seller”).

W I T N E S S E T H :

WHEREAS, HARC has agreed to purchase from time to time
from Seller, and Seller, pursuant to this Agreement, has agreed to transfer
from time to time to HARC the Receivables and the Other Conveyed Property.

WHEREAS, HARC intends from time to time to transfer
Receivables and Other Conveyed Property to different Delaware business trusts,
each of which will issue notes and certificates secured by the Receivables and
Other Conveyed Property.

NOW, THEREFORE, in consideration of the premises and
the mutual agreements hereinafter contained, and for other good and valuable
consideration, the receipt of which is acknowledged, HARC and Seller, intending
to be legally bound, hereby agree as follows:

ARTICLE I

DEFINITIONS

SECTION 1.1   General.   Capitalized
terms used herein without definition shall have the respective meanings
assigned to such terms in the related Master Sale and Servicing Agreement.

SECTION 1.2   Specific
Terms.   Whenever used in this Agreement, the following words and phrases,
unless the context otherwise requires, shall have the following meanings:

“Agreement” means this Master Receivables
Purchase Agreement and all amendments hereof and supplements hereto.

“Conveyance” shall have the meaning specified
in Section 2.1.

“Conveyance Papers” shall have the meaning
specified in Section 3.1.

“Cutoff Date” shall have the meaning assigned
to such term in the applicable Series Supplement or Receivables Purchase
Agreement Supplement.

“Master Sale and Servicing Agreement” means
each agreement so entitled set forth on Schedule A among HARC, Household
Finance Corporation, as Master Servicer, the indenture trustee named therein
and the issuer named therein, each as supplemented by a related series
supplement among HARC, Household Finance 

 1
 

 

Corporation, as Master Servicer, the indenture trustee
named therein, the issuer named therein and the owner trustee named therein,
pursuant to which Receivables are conveyed by HARC to such issuer.

“Other Conveyed Property” means all money,
instruments, rights and other property that are subject or intended to be
subject to the lien and security interest of the related Indenture (including
all property and interests granted to the related Indenture Trustee), including
all proceeds thereof, other than the Receivables.

“Purchase Date” means, with respect to
Receivables, any date, on which Receivables are to be purchased by HARC
pursuant to this Agreement and a Receivables Purchase Agreement Supplement is
executed and delivered by Seller and HARC.

“Receivables” means the Receivables listed on
the Schedules of Receivables attached to a Receivables Purchase Agreement
Supplement as Schedule A.

“Receivables Purchase Agreement Supplement”
means an agreement between HARC and Seller in connection with a Series, substantially
in the form of Exhibit A hereto.

“Repurchase Event” means a determination
pursuant to Section 3.2 of the related Master Sale and Servicing Agreement
that HARC is required to repurchase a Receivable.

“Schedule of Receivables” means a schedule of
Receivables sold and transferred pursuant to this Agreement and a related
Receivables Purchase Agreement Supplement, which is attached as Schedule A to
such related Receivables Purchase Agreement Supplement.

SECTION 1.3   Other Definitional
Provisions.

(a)   All
terms defined in this Agreement shall have the defined meanings when used in
any certificate, other documents, or Conveyance Paper made or delivered
pursuant hereto unless otherwise defined herein.

(b)   The
words “hereof”, “herein” and “hereunder” and words of similar import when used
in this Agreement or any Conveyance Paper shall refer to this Agreement as a
whole and not to any particular provision of this Agreement; and Section,
Subsection, Schedule and Exhibit references contained in this Agreement are
references to Sections, Subsections, Schedules and Exhibits in or to this
Agreement unless otherwise specified.

(c)   All
determinations of the principal or finance charge balance of any Receivable,
and of any collections thereof, shall be made in accordance with the related
Master Sale and Servicing Agreement.

SECTION 1.4   Certain References.   All
references to the Principal Balance of a Receivable as of any date of
determination shall refer to the close of 

 2
 

 

business on such day, or as of the first day of a
Collection Period shall refer to the opening of business on such day. All
references to the last day of a Collection Period shall refer to the close of
business on such day.

SECTION 1.5   No
Recourse.   Without limiting the obligations of Seller hereunder, no
recourse may be taken, directly or indirectly, under this Agreement or any
certificate or other writing delivered in connection herewith or therewith,
against any stockholder, officer or director, as such, of Seller, or of any
predecessor or successor of Seller.

ARTICLE II

CONVEYANCE OF THE RECEIVABLES

AND THE OTHER CONVEYED PROPERTY

SECTION 2.1   Purchase.

(a)   By
execution of this Agreement and subject to the terms and conditions of this
Agreement, on a Purchase Date with respect to a Receivables Purchase Agreement
Supplement, Seller shall sell, transfer, assign, and otherwise convey to HARC
(each, a “Conveyance”) without recourse (but without limitation of its
obligations in this Agreement), and HARC shall purchase, all right, title and
interest of Seller in and to:

(i)            each and every Receivable listed
from time to time on Schedule A to such related Receivables Purchase Agreement
Supplement and all monies paid or payable thereon or in respect thereof on or
after the related Cutoff Date (including amounts due on or before the related
Cutoff Date but received by Seller after such date);

(ii)           the security interests in the related
Financed Vehicles granted by Obligors pursuant to such Receivables and any
other interest of Seller in such Financed Vehicles;

(iii)          all rights of Seller against Dealers
pursuant to Dealer Agreements or Dealer Assignments related to such
Receivables;

(iv)          any proceeds and the right to receive
proceeds with respect to such Receivables repurchased by a Dealer pursuant to a
Dealer Agreement;

(v)           all rights of Seller
under any Service Contracts on the related Financed Vehicles;

(vi)          any proceeds and the
right to receive proceeds with respect to the related Receivables from claims
on any physical damage, loss, credit life or disability insurance policies, if
any, covering Financed Vehicles or Obligors, including rebates of insurance premiums
relating to 

 3
 

 

the Receivables and any proceeds from the liquidation of such
Receivables;

(vii)         all items contained
in the Receivables Files with respect to such Receivables and any and all other
documents that Seller or Master Servicer keeps on file in accordance with its
customary procedures relating to the related Receivables, or the related
Financed Vehicles or Obligor;

(viii)        all property
(including the right to receive future Net Liquidation Proceeds) that secures
each related Receivable and that has been acquired by or on behalf of HARC
pursuant to the liquidation of such Receivable; and

(ix)           all present and future claims,
demands, causes and choses in action in respect of any or all of the foregoing
and all payments on or under and all proceeds of every kind and nature
whatsoever in respect of any or all of the foregoing, including all proceeds of
the conversion, voluntary or involuntary, into cash or other liquid property,
all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances,
chattel paper, checks, deposit accounts, insurance proceeds, condemnation
awards, rights to payment of any and every kind and other forms of obligations
and receivables, instruments and other property which at any time constitute
all or part of or are included in the proceeds of any of the foregoing.

(b)   Simultaneously
with each Conveyance, HARC will pay or cause to be paid to or upon the order of
Seller an amount equal to 100% of the Principal Balance of the related
Receivables on the books and records of Seller, plus the present value of
anticipated excess spread on such Receivables, discounted to take into account
any uncertainty as to future performance matching historical performance,
servicing fees, delinquencies, pay down rates, yield and such other factors as
may be mutually agreed upon between Seller and HARC, by wire transfer of
immediately available funds.

(c)   In
connection with each Conveyance, Seller further agrees that it will, at its own
expense, on or prior to the related Purchase Date (i) indicate in its
computer files or microfiche lists that the related Receivables have been
conveyed to HARC in accordance with this Agreement and the related Receivables
Purchase Agreement Supplement, and have been conveyed by HARC to the related
Indenture Trustee pursuant to the related Master Sale and Servicing Agreement
for the benefit of the related Secured Parties by including in such computer
files and microfiche lists the code identifying each such Receivable and (ii) deliver
to HARC (or to the related Indenture Trustee if HARC so directs) a computer
file or microfiche list containing a true and complete list of all such
Receivables specifying for each such Receivable, as of the Cutoff Date (A) its
account number and (B) the outstanding balance of such Receivable. Such
computer files or microfiche lists shall be delivered to HARC (or to the
related Indenture Trustee if so directed by HARC) and marked as proprietary and
confidential. Seller further agrees not 

 4
 

 

to alter the code referenced in clause (i) of
this paragraph with respect to any Receivable during the term of this
Agreement.

(d)   The
parties hereto intend that each Conveyance shall constitute a sale of the
Seller’s right, title and interest in and to the related Receivables and Other
Conveyed Property, conveying good title free and clear of any liens, claims,
encumbrances or rights of others from Seller to HARC and that the such
Receivables and Other Conveyed Property subject to such Conveyance shall not be
part of Seller’s estate in the event of the insolvency of Seller or a
conservatorship, receivership or similar event with respect to Seller. It is
the intention of the parties hereto that the arrangements with respect to each
Conveyance of Receivables and Other Conveyed Property shall constitute a
purchase and sale of such Receivables and Other Conveyed Property and not a
loan. In the event, however, that a court of competent jurisdiction were to
hold that the transactions evidenced hereby constitute a loan and not a
purchase and sale, it is the intention of the parties hereto that this
Agreement shall constitute a security agreement under applicable law, and that
Seller shall be deemed to have granted to HARC a first priority perfected
security interest in all of such Seller’s right, title and interest in and to
the Receivables and Other Conveyed Property.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

SECTION 3.1   Representations
and Warranties of Seller.   Seller makes the representations and
warranties set forth in Section 3.1(b) through (h) as of each
Purchase Date on which HARC relies in purchasing the Receivables and the Other
Conveyed Property subject to the related Conveyance and in transferring the
Receivables and the Other Conveyed Property to the Issuer under the related
Master Sale and Servicing Agreement. The representations set forth in Section 3.1(a),
on which HARC relies in purchasing the Receivables and the Other Conveyed
Property subject to the related Conveyance and in transferring the Receivables
and the Other Conveyed Property to the Issuer under the related Master Sale and
Servicing Agreement, are made with respect to Receivables and Other Conveyed
Property conveyed hereunder, as of the execution and delivery of the related
Receivables Purchase Agreement Supplement, but shall, together with the
representations and warranties set forth in Section 3.1(b) through
(h), survive the sale, transfer and assignment of the Receivables and the Other
Conveyed Property hereunder, and the sale, transfer and assignment thereof by
HARC to the Issuer under each Master Sale and Servicing Agreement. Seller and
HARC agree that HARC will assign to Issuer all HARC’s rights under this
Agreement and each Receivables Purchase Agreement Supplement and that the
Indenture Trustee will thereafter be entitled to enforce this Agreement and
each Receivables Purchase Agreement Supplement against Seller in the Indenture
Trustee’s own name on behalf of the Securityholders.

(a)   Eligibility
Criteria. Each of the Receivables which is to be pledged as collateral for
a Series of Notes will satisfy the applicable Eligibility Criteria set
forth in, or to be set forth in, Schedule I to the Series Supplement
establishing such Series.

 5
 

 

(b)   Organization
and Good Standing. Seller is a corporation duly organized and validly existing
in good standing under the laws of the state of Delaware and has, in all
material respects, full power and authority to own its properties and conduct
its business as such properties are presently owned and such business is
presently conducted, and to execute, deliver and perform its obligations under
this Agreement.

(c)   Due
Obligation. Seller is duly qualified to do business and is in good standing
as a foreign corporation (or is exempt from such requirements) and has obtained
all necessary licenses and approvals, in each jurisdiction in which failure to
so qualify or to obtain such licenses and approvals would (i) render any
Receivable unenforceable by Seller, HARC or any Trust and (ii) have a
material adverse effect on any Secured Parties.

(d)   Due
Authorization. The execution, delivery and performance of this Agreement
and any other document or instrument delivered pursuant hereto (such other
documents and instruments, including, but not limited to, the Receivables
Purchase Agreement Supplement collectively, the “Conveyance Papers”) and
the consummation of the transactions provided for in this Agreement or any
other Conveyance Papers have been duly authorized by all necessary corporate
action on the part of Seller and constitute or will constitute the legal, valid
and binding obligation of Seller, enforceable in accordance with their terms.

(e)   No
Conflict. The execution and delivery of this Agreement and the Conveyance
Papers, the performance of the transactions contemplated by this Agreement and
the Conveyance Papers, and the fulfillment of the terms of this Agreement and
the Conveyance Papers applicable to Seller will not conflict with, violate or
result in any breach of any of the material terms and provisions of, or
constitute (with or without notice or lapse of time or both) a material default
under, any indenture, contract, agreement, mortgage, deed of trust, or other
instrument to which Seller is a party or by which it or any of its properties
are bound.

(f)    No
Violation. The execution, delivery and performance of this Agreement and
the Conveyance Papers and the fulfillment of the terms contemplated herein and
therein applicable to Seller will not conflict with or violate any requirements
of law applicable to Seller.

(g)   No
Proceedings. There are no proceedings or investigations pending or, to the
best knowledge of Seller, threatened against Seller, before any court,
regulatory body, administrative agency or other tribunal or governmental  instrumentality (i) asserting the
invalidity of this Agreement or the Conveyance Papers, (ii) seeking to
prevent the consummation of any of the transactions contemplated by this
Agreement or the Conveyance Papers, (iii) seeking any determination or
ruling that, in the reasonable judgment of Seller, would materially and
adversely affect the performance by Seller of its obligations under this
Agreement or the Conveyance Papers, (iv) seeking any determination or
ruling that would materially and adversely affect the validity or
enforceability of this Agreement or the Conveyance Papers or (v) seeking
to affect adversely the income tax attributes of any Trust under United States
Federal, Nevada or California income tax systems.

 6
 

 

(h)   All
Consents. All authorizations, consents, orders, approvals, registrations or
declarations with, or of, any Governmental Authority required to be obtained,
effected or given by Seller in connection with the execution and delivery by
Seller of this Agreement or the Conveyance Papers and the performance of the
transactions contemplated by this Agreement or the Conveyance Papers by Seller
have been duly obtained, effected or given and are in full force and effect.

SECTION 3.2   Representations
and Warranties of HARC.   HARC makes the representations and warranties
set forth in Section 3.2 (a) through (f) as of each Purchase
Date, on which Seller relies in selling, assigning, transferring and conveying
the Receivables and the Other Conveyed Property subject to the related
conveyance to HARC hereunder. The representations are made with respect to
Receivables and Other Conveyed Property conveyed hereunder, as of the execution
and delivery of the related Receivables Purchase Agreement Supplement, but
shall survive the sale, transfer and assignment of the Receivables and the
Other Conveyed Property hereunder and the sale, transfer and assignment thereof
by HARC to the related Issuer under each Master Sale and Servicing Agreement.

(a)   Organization
and Good Standing. HARC is a corporation duly organized and validly
existing under the laws of the State of Nevada and has, in all material
respects, full power and authority to own its properties and conduct its
business as such properties are presently owned and such business is presently
conducted and to execute, deliver and perform its obligations under this
Agreement and the Conveyance Papers.

(b)   Due
Authorization. The execution and delivery of this Agreement and the
Conveyance Papers and the consummation of the transactions provided for in this
Agreement and the Conveyance Papers have been duly authorized by HARC by all
necessary corporate action on the part of HARC.

(c)   No
Conflict. The execution and delivery of this Agreement and the Conveyance
Papers, the performance of the transactions contemplated by this Agreement and
the Conveyance Papers, and the fulfillment of the terms hereof and thereof,
will not conflict with, result in any breach of any of the material terms and
provisions of, or constitute (with or without notice or lapse of time or both)
a material default under, any indenture, contract, agreement, mortgage, deed of
trust or other instrument to which HARC is a party or by which it or its
properties is bound.

(d)   No
Violation. The execution, delivery and performance of this Agreement and
the Conveyance Papers by HARC and the fulfillment of the terms contemplated
herein and therein applicable to HARC will not conflict with or violate any
requirements of law applicable to HARC.

(e)   No
Proceeding. There are no proceedings or investigations pending or, to the
best knowledge of HARC, threatened against HARC, before any court, regulatory
body, administrative agency, or other tribunal or governmental instrumentality (i) asserting
the invalidity of this Agreement or the Conveyance Papers, (ii) seeking to

 7
 

 

prevent the consummation of any of the transactions
contemplated by this Agreement or the Conveyance Papers, (iii) seeking any
determination or ruling that, in the reasonable judgment of HARC, would
materially and adversely affect the performance by HARC of its obligations
under this Agreement or the Conveyance Papers or (iv) seeking any
determination or ruling that would materially and adversely affect the validity
or enforceability of this Agreement or the Conveyance Papers.

(f)    All
Consents. All authorizations, consents, orders or approvals of or
registrations or declarations with any Governmental Authority required to be
obtained, effected or given by HARC in connection with the execution and
delivery by HARC of this Agreement and the Conveyance Papers and the
performance of the transactions contemplated by this Agreement and the
Conveyance Papers or the fulfillment of the terms of this Agreement and the
Conveyance Papers by HARC have been duly obtained.

In the event of any breach of a representation and
warranty made by HARC hereunder, Seller covenants and agrees that it will not
take any action to pursue any remedy that it may have hereunder, in law, in
equity or otherwise, until a year and a day have passed since the date on which
all Notes and Certificates issued by any Trust have been paid in full. Seller
and HARC agree that damages will not be an adequate remedy for such breach and
that this covenant may be specifically enforced by HARC, the related Issuer or
by the related Indenture Trustee on behalf of the related Secured Parties and
the related Owner Trustee on behalf of the related Certificateholders. Seller
agrees that with respect to its obligations in connection with a Repurchase
Event it will exercise no rights of offset with respect to any claims it may
have against HARC.

ARTICLE IV

COVENANTS OF SELLER

SECTION 4.1   Seller’s
Covenants.   Seller hereby covenants and agrees with HARC as follows:

(a)   Receivables
Not To Be Evidenced by Promissory Notes. Seller will take no action to
cause any Receivable to be evidenced by any instrument (as defined in the UCC).

(b)   Security
Interests. Except for the conveyances hereunder or as otherwise provide
herein, Seller will not sell, pledge, assign or transfer to any other Person,
or take any other action inconsistent with HARC’s ownership of the Receivables
and Other Conveyed Property or grant, create, incur, assume or suffer to exist
any Lien on any Receivable or any Other Conveyed Property, whether now existing
or hereafter created, or any interest therein, and Seller shall not claim any
ownership interest in the Receivables or any Other Conveyed Property and shall
defend the right, title and interest of HARC in and to the Receivables and Other
Conveyed Property, whether now existing or hereafter created, against all
claims of third parties claiming through or under Seller.

 8
 

 

(c)   Security’s
Interest. Except for the conveyances hereunder and in connection with any
transaction permitted pursuant to Section 6.6, Seller hereby agrees not to
transfer, assign, exchange or otherwise convey or pledge, hypothecate or
otherwise grant a security interest in the Receivables or any Other Conveyed
Property and any such attempted transfer, assignment, exchange, conveyance,
pledge, hypothecation or grant shall be void.

(d)   Delivery
of Collections or Recoveries. In the event that Seller receives collections
or recoveries with respect to the Receivables, Seller agrees to pay to HARC (or
to the Master Servicer if HARC so directs) all such collections and recoveries
to the extent such amounts are payable to HARC as soon as practicable after
receipt thereof.

(e)   Notice
of Liens. Seller shall notify HARC promptly after becoming aware of any
Lien on any Receivable or any Other Conveyed Property other than the
conveyances hereunder.

(f)    Documentation
of Transfer. Seller shall undertake to file the documents which would be
necessary to perfect and maintain the transfer of the security interest in and
to the Receivables and Other Conveyed Property.

(g)   Approval
of Office Records. Seller shall cause this Agreement to be duly approved by
Seller’s Board of Directors, and Seller shall maintain this Agreement as a part
of the official records of Seller for the term of this Agreement.

(h)   Maintenance
of Security Interests in Vehicles. In the event that the assignment of a
Receivable to HARC or any assignee thereof is insufficient, without a notation
on the related Financed Vehicle’s certificate of title, or without fulfilling
any additional administrative requirements under the laws of the state in which
the Financed Vehicle is located, to perfect a security interest in the related
Financed Vehicle in favor of HARC or any assignee thereof, Seller hereby agrees
that the designation of Seller or any Affiliate of Seller as the secured party
on the certificate of title is in its capacity as agent of HARC or the agent of
any assignee of HARC for such limited purpose.

ARTICLE V

REPURCHASES

SECTION 5.1   Repurchase
of Receivables Upon Breach of Warranty.   Upon the occurrence of a
Repurchase Event, Seller shall, unless the breach which is the subject of such
Repurchase Event shall have been cured in all material respects, repurchase the
Receivable relating thereto from the related Issuer under the related Master
Sale and Servicing Agreement by the last day of the first full calendar month
following the discovery of such breach by Seller or receipt by Seller of notice
of such breach from any of the Master Servicer, HARC, a Trust Officer of the
related Indenture Trustee or the related Owner Trustee and, simultaneously with
the repurchase of the Receivable, Seller shall deposit the Repurchase Amount in
full, without deduction or offset, in the Collection Account, pursuant to Section 3.2
of the related Master Sale and Servicing Agreement. It is understood and agreed
that, except as set forth in Section 6.1 hereof, the obligation of Seller
to repurchase any Receivable, as to which a breach occurred and is continuing,
shall, if such obligation is fulfilled, constitute the sole remedy against
Seller for such breach available to HARC, the related Issuer, the related
Secured Parties, the related Certificateholders, the related Indenture Trustee
on behalf of the related Noteholders or the related Owner Trustee on behalf of
the related Certificateholders. The provisions of this Section 5.1 are
intended to grant the related Indenture Trustee or the related Issuer a direct
right against Seller to demand performance hereunder, and in connection
therewith, Seller waives any requirement of prior demand against HARC with
respect to such repurchase obligation. Any such repurchase shall take place in the
manner specified in Section 3.2 of the related Master Sale and 

 9
 

 

Servicing Agreement. Notwithstanding any other
provision of this Agreement or the related Master Sale and Servicing Agreement
to the contrary, the obligation of Seller under this Section shall not
terminate upon a termination of Household Finance Corporation as Master
Servicer under the related Master Sale and Servicing Agreement and shall be
performed in accordance with the terms hereof notwithstanding the failure of
the Master Servicer or HARC to perform any of their respective obligations with
respect to such Receivable under the related Master Sale and Servicing
Agreement.

SECTION 5.2   Reassignment
of Repurchased Receivables.   Upon deposit in the Collection Account of
the Repurchase Amount of any Receivable repurchased by Seller under Section 5.1
hereof, HARC and the related Issuer shall take such steps as may be reasonably
requested by Seller in order to assign to Seller all of HARC’s and the related
Issuer’s right, title and interest in and to such Receivable and all security
and documents and all Other Conveyed Property conveyed to HARC and the related
Issuer directly relating thereto, without recourse, representation or warranty,
except as to the absence of liens, charges or encumbrances created by or
arising as a result of actions of HARC or the related Issuer. Such assignment
shall be a sale and assignment outright, and not for security. If, following
the reassignment of a Repurchased Receivable, in any enforcement suit or legal
proceeding, it is held that Seller may not enforce any such Receivable on the
ground that it shall not be a real party in interest or a holder entitled to
enforce the Receivable, HARC and the related Issuer shall, at the expense of
Seller, take such steps as Seller deems reasonably necessary to enforce the
Receivable, including bringing suit in HARC’s or in the related Issuer’s name.

SECTION 5.3   Waivers.   No
failure or delay on the part of HARC, or the related Issuer as assignee of
HARC, in exercising any power, right or remedy under this Agreement shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such power, right or remedy preclude any other or future exercise thereof or
the exercise of any other power, right or remedy.

 10

 

ARTICLE VI

MISCELLANEOUS

SECTION 6.1   Liability
of Seller.   Seller
shall be liable in accordance herewith only to the extent of the obligations in
this Agreement specifically undertaken by Seller and the representations and
warranties of Seller.

SECTION 6.2   Amendment.   This
Agreement and any Conveyance Papers and the rights and obligations of the
parties hereunder may not be changed orally, but only by an instrument in
writing signed by HARC and Seller in accordance with this Section 6.2. This
Agreement and any Conveyance Papers may be amended from time to time by HARC
and Seller only with the prior written consent of all of the Secured Parties.

SECTION 6.3   GOVERNING
LAW.   THIS AGREEMENT AND THE CONVEYANCE PAPERS SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

SECTION 6.4   Notices.   All
demands, notices and communications hereunder shall be in writing and shall be
deemed to have been duly given if personally delivered at or mailed by
registered mail, return receipt requested, to (a) in the case of Seller,
5855 Copley Drive, San Diego, CA 92111, Attention:  Chief Operating Officer, with a copy to 2700
Sanders Road, Prospect Heights, Illinois 60070 
Attention:  Director—Asset
Securitization, (b) in the case of HARC, 1111 Town Center Drive, Las
Vegas, Nevada 89134 Attention: 
Compliance Officer, with a copy to 2700 Sanders Road, Prospect Heights,
Illinois 60070,  Attention:  Treasurer; or, as to each party, at such
other address as shall be designated by such party in a written notice to each
other party.

SECTION 6.5   Severability
of Provisions.   If any one or more of the covenants, agreements,
provisions, or terms of this Agreement or Conveyance Paper shall for any reason
whatsoever be held invalid, then such covenants, agreements, provisions, or
terms shall be deemed severable from the remaining covenants, agreements,
provisions, and terms of this Agreement or any Conveyance Paper and shall in no
way affect the validity or enforceability of the other provisions of this
Agreement or of any Conveyance Paper.

SECTION 6.6   Assignment.   Notwithstanding
anything to the contrary contained herein, other than HARC’s assignment of its
rights, title, and interests in, to, and under this Agreement to the Issuer
specified in a Master Sale and Servicing Agreement (which Issuer shall assign
such rights, title and interest in and to this Agreement to the related
Indenture Trustee for the benefit of the related Secured Parties), as
contemplated by the Master Sale and Servicing Agreement and Section 6.7
hereof, the Receivables, the Other Conveyed Property, this Agreement and all
other Conveyance 

 11
 

 

Papers may not be assigned by the parties hereto; provided,
however, that Seller shall have the right to assign its rights, title
and interests, in to and under this Agreement to (i) any successor by
merger or consolidation, or any Person which acquires by conveyance, transfer
or sale the properties and assets of Seller or (ii) any Affiliate owned
directly or indirectly by Household International, Inc. The right granted
in the foregoing proviso is subject to the further condition that any such
successor or other Person shall expressly assume by written agreement, in form
and substance satisfactory to HARC, the obligations of Seller hereunder and
under the Conveyance Papers.

SECTION 6.7   Acknowledgment
and Agreement of Seller.   By execution below, Seller expressly
acknowledges and agrees that all of HARC’s right, title, and interest in, to,
and under this Agreement, including, without limitation, all of HARC’s right
title, and interest in and to the Receivables purchased pursuant to this
Agreement, shall be assigned by HARC to an Issuer specified in a Master Sale
and Servicing Agreement and by such Issuer to the related Indenture Trustee for
the benefit of the related Secured Parties, and Seller consents to such
assignment. Additionally, Seller agrees for the benefit of such Indenture
Trustee that any amounts payable by Seller to HARC hereunder which are to be
paid by HARC to such Indenture Trustee for the benefit of the related Secured
Parties shall be paid by Seller, on behalf of HARC, directly to such Indenture
Trustee. Any payment required to be made on or before a specified date in
same-day funds may be made on the prior business day in next-day funds.

SECTION 6.8   Further
Assurances.   HARC and Seller agree to do and perform, from time to
time, any and all acts to authenticate any and further records, to execute any
and further instruments, in each case required or reasonably requested by the
other party more fully to effect the purposes of this Agreement and the
Conveyance Papers, including, without limitation, the execution of any
financing statements or continuation statements or equivalent documents
relating to the Receivables for filing under the provisions of the UCC or other
law of any applicable jurisdiction.

SECTION 6.9   No
Waiver; Cumulative Remedies.   No failure to exercise and no delay in
exercising, on the part of HARC or Seller, any right, remedy, power or
privilege hereunder, shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, remedy, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege. The rights, remedies, powers and privileges herein
provided are cumulative and not exhaustive of any rights, remedies, powers and
privileges provided by law.

SECTION 6.10   Counterparts.   This
Agreement and all Conveyance Papers may be executed in two or more counterparts
(and by different parties on separate counterparts), each of which shall be an
original, but all of which together shall constitute one and the same instrument.

SECTION 6.11   Binding
Effect; Third-Party Beneficiaries.   This Agreement and the Conveyance
Papers will inure to the benefit of and be binding upon the parties hereto and
their respective successors and permitted assigns. Each of the Indenture
Trustee and Issuer with respect to a Master Sale and Servicing Agreement and 

 12
 

 

the related Owner Trustee shall be considered a
third-party beneficiary of this Agreement.

SECTION 6.12   Merger
and Integration.   Except as specifically stated otherwise herein, this
Agreement and the Conveyance Papers set forth the entire understanding of the
parties relating to the subject matter hereof, 
and all prior understandings, written or oral, are superseded by this
Agreement and the Conveyance Papers. This Agreement  and the Conveyance Papers may not be
modified, amended, waived or supplemented except as provided herein.

SECTION 6.13   Heading.   The
headings are for purposes of reference only and shall not otherwise affect the
meaning or interpretation of any provision hereof.

SECTION 6.14   Schedules
and Exhibits.   The schedules and exhibits attached hereto and referred
to herein shall constitute a part of this Agreement and are incorporated into
this Agreement for all purposes.

SECTION 6.15   Survival
of Representations and Warranties.   All representations, warranties
and agreements contained in this Agreement or contained in any Conveyance Paper,
shall remain operative and in full force and effect and shall survive
conveyance of the Receivables by HARC to the Issuer pursuant to the Master Sale
and Servicing Agreement and the pledge thereof by the Issuer to the Indenture
Trustee pursuant to the related Indenture and the related Series Supplement.

SECTION 6.16   Nonpetition
Covenant.   Until the date which is one year and one day after payment
in full of all the Notes of all Series, neither HARC nor Seller shall petition
or otherwise invoke the process of any court or government authority for the
purpose of commencing or sustaining a case against Seller or any Issuer under
any federal or state bankruptcy, insolvency or similar law or appointing a
receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of Seller or any Issuer or any substantial part of their
respective properties, or ordering the winding up or liquidation of the affairs
of Seller or any Issuer. This provision shall survive the termination of this
Agreement.

[Signature Page Follows]

 13
 

 

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

	
  

  	
  HOUSEHOLD AUTOMOTIVE FINANCE CORPORATION

        as Seller

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Timothy R. Condon

  
	
   

  	
   

  	
  Name: Timothy R. Condon

  	
   

  	
   

  
	
   

  	
   

  	
  Title: Executive Vice President & Chief Financial
  Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  HOUSEHOLD AUTO RECEIVABLES 

  CORPORATION,

  
	
   

  	
   

  	
  as Purchaser

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven H. Smith

  
	
   

  	
   

  	
  Name: Steven H. Smith

  	
   

  	
   

  
	
   

  	
   

  	
  Title: Vice President & Assistant Treasurer

  	
   

  	
   

  

 

 14

 

EXHIBIT A

FORM OF RECEIVABLES PURCHASE AGREEMENT
SUPPLEMENT

Transfer No.    of Receivables, dated
as of                                       ,
pursuant to a Master Receivables Purchase Agreement (the “Purchase Agreement”)
dated as of November 18, 2002, between Household Automotive Finance
Corporation, a Delaware corporation (“Seller”) and Household Auto
Receivables Corporation, a Nevada corporation (“HARC”).

W I T N E S S E T H :

WHEREAS pursuant to the Purchase Agreement, Seller
wishes to convey Receivables and Other Conveyed Property to HARC; and

WHEREAS, HARC is willing to accept such conveyance
subject to the terms and conditions hereof.

NOW, THEREFORE, Seller and HARC hereby agree as
follows:

1.             Defined
Terms.   Capitalized terms used herein shall have the meanings ascribed
to them in the Purchase Agreement unless otherwise defined herein.

“Cutoff Date” shall mean with respect to the
Receivables conveyed hereby, the close of business on                                       ,
200  .

“Master Sale and Servicing Agreement” means the
agreement dated as of                         ,
           among HARC,
Household Finance Corporation, as Master Servicer,                               ,
as indenture trustee and                                 ,
as issuer.

“Purchase Date” shall mean with respect to the
Receivables conveyed hereby,                                       ,
200  .

“Purchase Price” shall mean 100% of the
Principal Balance of the Receivables on the books and records of Seller, plus
the present value of anticipated excess spread on such Receivables, discounted
to take into account any uncertainty as to future performance matching
historical performance, servicing fees, delinquencies, paydown rates, yield and
such other factors as may be mutually agreed upon by Seller and HARC.

“Transfer Date” means, with respect to
Receivables, the date on which Receivables and Other Conveyed Property are to
be transferred to the Trust pursuant to the Master Sale and Servicing
Agreement.

 A-1
 

 

2.             Schedule
of Receivables.   Annexed as Schedule A hereto is a computer file which
reflects the Receivables that constitute the Receivables to be conveyed
pursuant to this Agreement on the Purchase Date.

3.             Conveyance
of Receivables.   In consideration of HARC’s delivery to or upon the
order of Seller of the Purchase Price, Seller does hereby sell, transfer,
assign, set over and otherwise convey to HARC, without recourse (except as
expressly provided in the Purchase Agreement), all right, title and interest of
Seller in and to:

(i)           each and every Receivable listed on
Schedule A hereto and all monies paid or payable thereon or in respect thereof
on or after the Cutoff Date (including amounts due on or before the Cutoff Date
but received by Seller after such date);

(ii)          the security interests in the related
Financed Vehicles granted by Obligors pursuant to such Receivables and any
other interest of Seller in such Financed Vehicles;

(iii)         all rights of Seller against Dealers
pursuant to Dealer Agreements or Dealer Assignments related to such Receivables;

(iv)         any proceeds and the right to receive
proceeds with respect to such Receivables repurchased by a Dealer pursuant to a
Dealer Agreement;

(v)          all rights of Seller under any Service
Contracts on the related Financed Vehicles;

(vi)         any proceeds and the right to receive
proceeds with respect to the related Receivables from claims on any physical
damage, loss, credit life or disability insurance policies, if any, covering
Financed Vehicles or Obligors, including rebates of insurance premiums relating
to the Receivables and any proceeds from the liquidation of such Receivables;

(vii)        all items contained in the Receivables
Files with respect to such Receivables and any and all other documents that
Seller or the Master Servicer keeps on file in accordance with its customary
procedures relating to the related Receivables, or the related Financed
Vehicles or Obligor;

(viii)       all property (including the right to
receive future Net Liquidation Proceeds) that secures each related Receivable
and that has been acquired by or on behalf of HARC pursuant to liquidation of
such Receivable;

(ix)         all present and future claims, demands,
causes and choses in action in respect of any or all of the foregoing and all
payments on or under and all proceeds of every kind and nature whatsoever in
respect of any or all of the foregoing, including all proceeds of the
conversion, voluntary or involuntary, into cash or other liquid property, all
cash proceeds, accounts, accounts receivable, notes, drafts, acceptances,
chattel paper, checks, deposit accounts, insurance proceeds, condemnation
awards, rights to payment of any and every kind and 

 A-2
 

 

other forms of
obligations and receivables, instruments and other property which at any time
constitute all or part of or are included in the proceeds of any of the
foregoing.

4.             Representations
and Warranties of Seller.   As of the Purchase Date, Seller hereby
makes the representations and warranties to HARC that are set forth in Section 3.1
of the Purchase Agreement with respect to the Conveyance effected hereby to the
same extent as if set forth in full herein.

5.             Representations
and Warranties of HARC.   As of the Purchase Date, HARC hereby makes
the representations and warranties to Seller that are set forth in Section 3.2
of the Purchase Agreement with respect to the Conveyance effected hereby to the
same extent as if set forth in full herein. In the event of any breach of a
representation and warranty made by HARC hereunder, Seller covenants and agrees
that it will not take any action to pursue any remedy that it may have
hereunder, in law, in equity or otherwise, until a year and a day have passed
since the date on which all Notes and Certificates issued by the Trust have
been paid in full. Seller and HARC agree that damages will not be an adequate
remedy for such breach and that this covenant may be specifically enforced by
HARC, the related Issuer or by the related Indenture Trustee on behalf of the
related Secured Parties and the related Owner Trustee on behalf of the related
Certificateholders.

6.             Conditions
Precedent.   The obligation of HARC to acquire the Receivables
hereunder is subject to the satisfaction, on or prior to the Purchase Date, of
the following conditions precedent:

(a)           Representations
and Warranties.   Each of the representations and warranties made by
Seller in Section 4 of this Agreement and in Section 3.1 of the
Master Receivables Purchase Agreement shall be true and correct as of the date
of this Agreement and as of the Purchase Date.

(b)           Additional
Information.   Seller shall have delivered to HARC such information as
was reasonably requested by HARC to satisfy itself as to (i) the accuracy
of the representations and warranties set forth in Section 4 of this
Agreement and in Section 3.1 of the Purchase Agreement and (ii) the
satisfaction of the conditions set forth in this Section.

7.             Ratification
of Agreement.   As supplemented by this Agreement, the Purchase
Agreement is in all respects ratified and confirmed and the Purchase Agreement
as so supplemented by this Agreement shall be read, taken and construed as one
and the same instrument.

8.             Counterparts.   This
Agreement may be executed in two or more counterparts (and by different parties
in separate counterparts), each of which shall be an original but all of which
together shall constitute one and the same instrument.

 A-3
 

 

9.             Conveyance
of the Receivables and the Other Conveyed Property to the Issuer.   Seller
acknowledges that HARC intends, pursuant to the related Master Sale and
Servicing Agreement, to convey the Receivables and the Other Conveyed Property,
together with its rights under this Agreement, to the related Issuer on the
Transfer Date. The Seller acknowledges and consents to such conveyance and
pledge and waives any further notice thereof and covenants and agrees that the
representations and warranties of the Seller contained in this Agreement and
the rights of HARC hereunder are intended to benefit the related Issuer, the
related Owner Trustee, the related Indenture Trustee, the related Secured
Parties and the related Certificateholders. In furtherance of the foregoing,
the Seller covenants and agrees to perform its duties and obligations hereunder,
in accordance with the terms hereof for the benefit of the related Issuer, the
related Owner Trustee, the related Indenture Trustee and the related Secured
Parties and that, notwithstanding anything to the contrary in this Agreement,
the Seller shall be directly liable to the related Issuer, the related Owner
Trustee, the related Indenture Trustee and the related Secured Parties
(notwithstanding any failure by the Master Servicer or HARC to perform their
respective duties and obligations hereunder or under any Basic Document) and
that the related Indenture Trustee may enforce the duties and obligations of
Seller under this Agreement against Seller for the benefit of the related
Secured Parties and the related Owner Trustee.

10.           GOVERNING
LAW.   THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND
THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 A-4
 

 

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

	
  

  	
  HOUSEHOLD AUTOMOTIVE FINANCE CORPORATION 

        as Seller

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  HOUSEHOLD AUTO RECEIVABLES 

  CORPORATION,

        as Purchaser

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

 A-5

 

SCHEDULE A

SCHEDULE OF
RELATED MASTER SALE AND SERVICING AGREEMENTS

(1) Master
Sale and Servicing Agreement dated as of November 18, 2002, among
Household Finance Corporation, as Master Servicer, Household Automotive Trust
2002-3, as Issuer, Household Auto Receivables Corporation, as Seller and
U.S. Bank National Association, as Indenture Trustee.

(2) Master
Sale and Servicing Agreement dated as of May 29, 2003, among Household
Finance Corporation, as Master Servicer, Household Automotive Trust 2003-1,
as Issuer, Household Auto Receivables Corporation, as Seller and U.S. Bank
National Association, as Indenture Trustee.

(3) Master Sale and  Servicing Agreement, dated as of November 26,
2003, among Household Finance Corporation, as Master Servicer, Household Automotive
Trust 2003-2, as Issuer, Household Auto Receivables Corporation, as
Seller and Wells Fargo Bank Minnesota, National Association, as Indenture
Trustee.

(4) Master Sale and Servicing Agreement, dated as
of June 22, 2005, among HSBC Finance Corporation (formerly Household
Finance Corporation), as Master Servicer, HSBC Automotive Trust 2005-1,
as Issuer, HSBC Auto Receivables Corporation (formerly Household Auto
Receivables Corporation), as Seller, Wells Fargo Bank, National Association, as
Indenture Trustee and HSBC Bank USA, National Association, as Administrator.

(5) Master Sale and Servicing Agreement, dated as
of July 27, 2005, among HSBC Finance Corporation, as Master Servicer, HSBC
Automotive Trust 2005-2, as Issuer, HSBC Auto Receivables Corporation, as
Seller, U.S. Bank National Association, as Indenture Trustee and HSBC Bank USA,
National Association, as Administrator.

(6) Master Sale and Servicing Agreement, dated as
of November 3, 2005, among HSBC Finance Corporation, as Master Servicer,
HSBC Automotive Trust 2005-3, as Issuer, HSBC Auto Receivables
Corporation, as Seller, JPMorgan Chase Bank, N.A., as Indenture Trustee and
HSBC Bank USA, National Association, as Administrator.

(7) Sale and Servicing Agreement, dated as of June 8,
2006, among HSBC Finance Corporation, as Servicer, HSBC Automotive Trust (USA)
2006-1, as Issuer, HSBC Auto Receivables Corporation, as Seller, The Bank
of New York, as Indenture Trustee and HSBC Bank USA, National Association, as
Administrator.Exhibit 10.1

AMENDED AND RESTATED CREDIT AGREEMENT

among

SYMMETRY MEDICAL INC.,

as Borrower,

THE LENDERS NAMED HEREIN,

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Administrative Agent,

GENERAL ELECTRIC CAPITAL CORPORATION,

as Syndication Agent,

and

CIT LENDING SERVICES CORPORATION

and

CHARTER ONE BANK, N.A.,

as Documentation Agents

$104,500,000 Senior Secured Credit Facilities

WACHOVIA CAPITAL MARKETS, LLC

Sole Lead Arranger and Sole Book Manager

Dated as of June 13, 2006

 

TABLE
OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  	
   

  
	
   

  	
   

  	
  ARTICLE
  I

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DEFINITIONS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.1

  	
   

  	
  Defined Terms

  	
   

  	
  1

  	
   

  
	
  1.2

  	
   

  	
  Accounting Terms

  	
   

  	
  28

  	
   

  
	
  1.3

  	
   

  	
  Other Terms;
  Construction

  	
   

  	
  29

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  II

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AMOUNT
  AND TERMS OF THE LOANS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  Commitments

  	
   

  	
  29

  	
   

  
	
  2.2

  	
   

  	
  Borrowings

  	
   

  	
  30

  	
   

  
	
  2.3

  	
   

  	
  Disbursements;
  Funding Reliance; Domicile of Loans

  	
   

  	
  34

  	
   

  
	
  2.4

  	
   

  	
  Evidence of
  Debt; Notes

  	
   

  	
  35

  	
   

  
	
  2.5

  	
   

  	
  Termination and
  Reduction of Commitments and Swingline Commitment

  	
   

  	
  35

  	
   

  
	
  2.6

  	
   

  	
  Mandatory
  Payments and Prepayments

  	
   

  	
  36

  	
   

  
	
  2.7

  	
   

  	
  Voluntary
  Prepayments

  	
   

  	
  40

  	
   

  
	
  2.8

  	
   

  	
  Interest

  	
   

  	
  41

  	
   

  
	
  2.9

  	
   

  	
  Fees

  	
   

  	
  42

  	
   

  
	
  2.10

  	
   

  	
  Interest Periods

  	
   

  	
  43

  	
   

  
	
  2.11

  	
   

  	
  Conversions and
  Continuations

  	
   

  	
  45

  	
   

  
	
  2.12

  	
   

  	
  Method of
  Payments; Computations

  	
   

  	
  46

  	
   

  
	
  2.13

  	
   

  	
  Recovery of
  Payments

  	
   

  	
  47

  	
   

  
	
  2.14

  	
   

  	
  Use of Proceeds

  	
   

  	
  47

  	
   

  
	
  2.15

  	
   

  	
  Pro Rata
  Treatment

  	
   

  	
  48

  	
   

  
	
  2.16

  	
   

  	
  Increased Costs;
  Change in Circumstances; Illegality; etc.

  	
   

  	
  48

  	
   

  
	
  2.17

  	
   

  	
  Taxes

  	
   

  	
  51

  	
   

  
	
  2.18

  	
   

  	
  Compensation

  	
   

  	
  53

  	
   

  
	
  2.19

  	
   

  	
  Replacement of
  Lenders

  	
   

  	
  54

  	
   

  
	
  2.20

  	
   

  	
  Increase in Revolving
  Credit Commitments

  	
   

  	
  55

  	
   

  
	
  2.21

  	
   

  	
  Incremental Term
  Loans

  	
   

  	
  57

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  III

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LETTERS
  OF CREDIT

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.1

  	
   

  	
  Issuance

  	
   

  	
  60

  	
   

  
	
  3.2

  	
   

  	
  Notices

  	
   

  	
  61

  	
   

  
	
  3.3

  	
   

  	
  Participations

  	
   

  	
  61

  	
   

  
	
  3.4

  	
   

  	
  Reimbursement

  	
   

  	
  62

  	
   

  
	
  3.5

  	
   

  	
  Payment by
  Revolving Loans

  	
   

  	
  62

  	
   

  
	
  3.6

  	
   

  	
  Payment to
  Revolving Credit Lenders

  	
   

  	
  63

  	
   

  

 

 i
 

 

 

	
  3.7

  	
   

  	
  Obligations
  Absolute

  	
   

  	
  64

  	
   

  
	
  3.8

  	
   

  	
  Cash Collateral
  Account

  	
   

  	
  65

  	
   

  
	
  3.9

  	
   

  	
  Effectiveness

  	
   

  	
  66

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  IV

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CONDITIONS
  OF BORROWING

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  Conditions of
  Initial Borrowing

  	
   

  	
  66

  	
   

  
	
  4.2

  	
   

  	
  Conditions of
  All Borrowings

  	
   

  	
  70

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  V

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  Corporate
  Organization and Power

  	
   

  	
  71

  	
   

  
	
  5.2

  	
   

  	
  Authorization;
  Enforceability

  	
   

  	
  71

  	
   

  
	
  5.3

  	
   

  	
  No Violation

  	
   

  	
  71

  	
   

  
	
  5.4

  	
   

  	
  Governmental and
  Third-Party Authorization; Permits

  	
   

  	
  72

  	
   

  
	
  5.5

  	
   

  	
  Litigation

  	
   

  	
  72

  	
   

  
	
  5.6

  	
   

  	
  Taxes

  	
   

  	
  72

  	
   

  
	
  5.7

  	
   

  	
  Subsidiaries

  	
   

  	
  73

  	
   

  
	
  5.8

  	
   

  	
  Full Disclosure

  	
   

  	
  73

  	
   

  
	
  5.9

  	
   

  	
  Margin
  Regulations

  	
   

  	
  73

  	
   

  
	
  5.10

  	
   

  	
  No Material
  Adverse Effect

  	
   

  	
  74

  	
   

  
	
  5.11

  	
   

  	
  Financial Matters.

  	
   

  	
  74

  	
   

  
	
  5.12

  	
   

  	
  Ownership of
  Properties

  	
   

  	
  75

  	
   

  
	
  5.13

  	
   

  	
  ERISA

  	
   

  	
  75

  	
   

  
	
  5.14

  	
   

  	
  Environmental
  Matters

  	
   

  	
  76

  	
   

  
	
  5.15

  	
   

  	
  Compliance with
  Laws

  	
   

  	
  76

  	
   

  
	
  5.16

  	
   

  	
  Intellectual
  Property

  	
   

  	
  76

  	
   

  
	
  5.17

  	
   

  	
  Regulated
  Industries

  	
   

  	
  77

  	
   

  
	
  5.18

  	
   

  	
  Insurance

  	
   

  	
  77

  	
   

  
	
  5.19

  	
   

  	
  Security
  Documents

  	
   

  	
  77

  	
   

  
	
  5.20

  	
   

  	
  Labor Relations

  	
   

  	
  78

  	
   

  
	
  5.21

  	
   

  	
  No Burdensome
  Restrictions

  	
   

  	
  78

  	
   

  
	
  5.22

  	
   

  	
  OFAC

  	
   

  	
  78

  	
   

  
	
  5.23

  	
   

  	
  Deposit Accounts

  	
   

  	
  79

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  VI

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AFFIRMATIVE
  COVENANTS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  Financial
  Statements

  	
   

  	
  79

  	
   

  
	
  6.2

  	
   

  	
  Other Business
  and Financial Information

  	
   

  	
  80

  	
   

  
	
  6.3

  	
   

  	
  Existence;
  Franchises; Maintenance of Properties

  	
   

  	
  82

  	
   

  
	
  6.4

  	
   

  	
  Compliance with
  Laws

  	
   

  	
  82

  	
   

  
	
  6.5

  	
   

  	
  Payment of
  Obligations

  	
   

  	
  82

  	
   

  

 

 ii
 

 

 

	
  6.6

  	
   

  	
  Insurance

  	
   

  	
  83

  	
   

  
	
  6.7

  	
   

  	
  Maintenance of
  Books and Records; Inspection

  	
   

  	
  83

  	
   

  
	
  6.8

  	
   

  	
  Permitted
  Acquisitions

  	
   

  	
  83

  	
   

  
	
  6.9

  	
   

  	
  Creation or
  Acquisition of Subsidiaries

  	
   

  	
  85

  	
   

  
	
  6.10

  	
   

  	
  Additional
  Security

  	
   

  	
  87

  	
   

  
	
  6.11

  	
   

  	
  Environmental
  Laws

  	
   

  	
  88

  	
   

  
	
  6.12

  	
   

  	
  Further
  Assurances

  	
   

  	
  89

  	
   

  
	
  6.13

  	
   

  	
  Deposit Accounts

  	
   

  	
  89

  	
   

  
	
  6.14

  	
   

  	
  Revisions or
  Updates to Schedules

  	
   

  	
  89

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  VII

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FINANCIAL
  COVENANTS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
   

  	
  Total Leverage
  Ratio

  	
   

  	
  90

  	
   

  
	
  7.2

  	
   

  	
  Interest
  Coverage Ratio

  	
   

  	
  90

  	
   

  
	
  7.3

  	
   

  	
  Fixed Charge
  Ratio

  	
   

  	
  90

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  VIII

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NEGATIVE
  COVENANTS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.1

  	
   

  	
  Merger;
  Consolidation

  	
   

  	
  90

  	
   

  
	
  8.2

  	
   

  	
  Indebtedness

  	
   

  	
  91

  	
   

  
	
  8.3

  	
   

  	
  Liens

  	
   

  	
  93

  	
   

  
	
  8.4

  	
   

  	
  Disposition of
  Assets

  	
   

  	
  95

  	
   

  
	
  8.5

  	
   

  	
  Investments

  	
   

  	
  96

  	
   

  
	
  8.6

  	
   

  	
  Restricted
  Payments

  	
   

  	
  99

  	
   

  
	
  8.7

  	
   

  	
  Transactions
  with Affiliates

  	
   

  	
  100

  	
   

  
	
  8.8

  	
   

  	
  Lines of
  Business

  	
   

  	
  100

  	
   

  
	
  8.9

  	
   

  	
  Sale-Leaseback
  Transactions

  	
   

  	
  101

  	
   

  
	
  8.10

  	
   

  	
  Certain
  Amendments

  	
   

  	
  101

  	
   

  
	
  8.11

  	
   

  	
  Limitation on
  Certain Restrictions

  	
   

  	
  101

  	
   

  
	
  8.12

  	
   

  	
  No Other
  Negative Pledges

  	
   

  	
  102

  	
   

  
	
  8.13

  	
   

  	
  Fiscal Year

  	
   

  	
  102

  	
   

  
	
  8.14

  	
   

  	
  Accounting
  Changes

  	
   

  	
  102

  	
   

  
	
  8.15

  	
   

  	
  Ownership of
  Subsidiaries

  	
   

  	
  102

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  IX

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EVENTS
  OF DEFAULT

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.1

  	
   

  	
  Events of
  Default

  	
   

  	
  102

  	
   

  
	
  9.2

  	
   

  	
  Remedies:
  Termination of Commitments, Acceleration, etc.

  	
   

  	
  105

  	
   

  
	
  9.3

  	
   

  	
  Remedies: Set-Off

  	
   

  	
  106

  	
   

  

 

 iii
 

 

 

	
  

  	
   

  	
  ARTICLE
  X

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE
  ADMINISTRATIVE AGENT

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1

  	
   

  	
  Appointment

  	
   

  	
  106

  	
   

  
	
  10.2

  	
   

  	
  Nature of Duties

  	
   

  	
  106

  	
   

  
	
  10.3

  	
   

  	
  Exculpatory
  Provisions

  	
   

  	
  107

  	
   

  
	
  10.4

  	
   

  	
  Reliance by
  Administrative Agent

  	
   

  	
  107

  	
   

  
	
  10.5

  	
   

  	
  Non-Reliance on
  Administrative Agent and Other Lenders

  	
   

  	
  108

  	
   

  
	
  10.6

  	
   

  	
  Notice of
  Default

  	
   

  	
  108

  	
   

  
	
  10.7

  	
   

  	
  Indemnification

  	
   

  	
  109

  	
   

  
	
  10.8

  	
   

  	
  The
  Administrative Agent in its Individual Capacity

  	
   

  	
  109

  	
   

  
	
  10.9

  	
   

  	
  Successor
  Administrative Agent

  	
   

  	
  110

  	
   

  
	
  10.10

  	
   

  	
  Collateral
  Matters

  	
   

  	
  110

  	
   

  
	
  10.11

  	
   

  	
  Issuing Lender
  and Swingline Lender

  	
   

  	
  111

  	
   

  
	
  10.12

  	
   

  	
  Other Agents,
  Managers

  	
   

  	
  111

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  XI

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MISCELLANEOUS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.1

  	
   

  	
  Fees and
  Expenses

  	
   

  	
  111

  	
   

  
	
  11.2

  	
   

  	
  Indemnification

  	
   

  	
  112

  	
   

  
	
  11.3

  	
   

  	
  Governing Law;
  Consent to Jurisdiction

  	
   

  	
  112

  	
   

  
	
  11.4

  	
   

  	
  Waiver of Jury
  Trial

  	
   

  	
  113

  	
   

  
	
  11.5

  	
   

  	
  Notices

  	
   

  	
  114

  	
   

  
	
  11.6

  	
   

  	
  Amendments,
  Waivers, etc.

  	
   

  	
  115

  	
   

  
	
  11.7

  	
   

  	
  Assignments,
  Participations

  	
   

  	
  116

  	
   

  
	
  11.8

  	
   

  	
  No Waiver

  	
   

  	
  119

  	
   

  
	
  11.9

  	
   

  	
  Successors and
  Assigns

  	
   

  	
  120

  	
   

  
	
  11.10

  	
   

  	
  Survival

  	
   

  	
  120

  	
   

  
	
  11.11

  	
   

  	
  Severability

  	
   

  	
  120

  	
   

  
	
  11.12

  	
   

  	
  Construction

  	
   

  	
  120

  	
   

  
	
  11.13

  	
   

  	
  Confidentiality

  	
   

  	
  120

  	
   

  
	
  11.14

  	
   

  	
  Counterparts;
  Effectiveness

  	
   

  	
  121

  	
   

  
	
  11.15

  	
   

  	
  Disclosure of
  Information

  	
   

  	
  121

  	
   

  
	
  11.16

  	
   

  	
  USA PATRIOT Act
  Notice

  	
   

  	
  121

  	
   

  
	
  11.17

  	
   

  	
  Entire Agreement

  	
   

  	
  121

  	
   

  
	
  11.18

  	
   

  	
  Waiver

  	
   

  	
  121

  	
   

  

 iv
 

 

 

EXHIBITS

Exhibit A-1                    Form of Term A Note

Exhibit A-2                    Form of Term A-1
Note

Exhibit A-3                    Form of Revolving Note

Exhibit A-4                    Form of Swingline Note

Exhibit B-1                     Form of Notice of
Borrowing

Exhibit B-2                     Form of Notice of
Swingline Borrowing

Exhibit B-3                     Form of Notice of
Conversion/Continuation

Exhibit B-4                     Form of Letter of
Credit Notice

Exhibit C                        Form of Compliance
Certificate

Exhibit D                        Form of Assignment
and Acceptance

Exhibit E                         Form of Security
Agreement

Exhibit F                         Form of Pledge
Agreement

Exhibit G                        Form of Subsidiary
Guaranty

Exhibit H                        Form of Financial
Condition Certificate

SCHEDULES

Schedule 1.1(a)             Commitments and Notice Addresses

Schedule 5.4                  Consents and Approvals

Schedule 5.6                  Taxes

Schedule 5.7                  Subsidiaries

Schedule 5.12                Real Property Interests

Schedule 5.14                Environmental Matters

Schedule 5.16                Intellectual Property

Schedule 5.18                Insurance Coverage

Schedule 5.23                Deposit Accounts

Schedule 8.2                  Indebtedness

Schedule 8.3                  Liens

Schedule 8.5                  Investments

Schedule 8.7                  Transactions with Affiliates

 v

 

AMENDED AND
RESTATED CREDIT AGREEMENT

This AMENDED AND RESTATED CREDIT
AGREEMENT, dated as of June __, 2006, is made among SYMMETRY MEDICAL INC., a Delaware
corporation (the “Borrower”), the Lenders (as hereinafter defined), WACHOVIA BANK, NATIONAL ASSOCIATION (“Wachovia”), as Administrative
Agent for the Lenders, GENERAL ELECTRIC
CAPITAL CORPORATION, as
Syndication Agent for the Lenders, and CIT
LENDING SERVICES CORPORATION and CHARTER ONE
BANK, N.A., as Documentation Agents for the Lenders.

BACKGROUND
STATEMENT

A.            The Borrower entered into a Credit
Agreement dated as of December 14, 2004, among the Borrower, Wachovia, as
administrative agent and lender, the other lenders and agents from time to time
party thereto (the “Existing Credit Agreement”), pursuant to which the
Lenders made available to the Borrower a term loan facility in the aggregate
principal amount of $35,000,000 and a revolving credit facility in the
aggregate principal amount of $40,000,000. The term loan facility under the
Existing Credit Agreement has been paid down to $24,500,000.

B.            The Borrower has requested that the
Existing Credit Agreement be amended and restated to add a new term loan
facility in the aggregate amount of $40,000,000 (making the aggregate principal
amount of the credit facilities equal to $104,500,000) and make certain other
amendments set forth herein. The Lenders are willing to amend and restate the
Existing Credit Agreement on the terms and conditions set forth in this
Agreement. It is the intent of the parties hereto that this Agreement not
constitute a novation of the obligations and liabilities existing under the
Existing Credit Agreement or evidence repayment of any of such obligations and
liabilities and that this Agreement amend and restate in its entirety the Existing
Credit Agreement and re-evidence the obligations of the Borrower outstanding
thereunder.

AGREEMENT

NOW, THEREFORE, in consideration of the
mutual provisions, covenants and agreements herein contained, the parties
hereto hereby agree as follows:

ARTICLE I

DEFINITIONS

1.1           Defined
Terms. For purposes of this Agreement, in addition to the terms defined
elsewhere herein, the following terms shall have the meanings set forth below
(such meanings to be equally applicable to the singular and plural forms thereof):

“Account
Designation Letter” shall mean a letter from the Borrower to the
Administrative Agent, duly completed and signed by an Authorized Officer of the
Borrower and in form and substance reasonably satisfactory to the
Administrative Agent, listing any one or more accounts to which the Borrower
may from time to time request the Administrative Agent to forward the proceeds
of any Loans made hereunder.

 

 

“Acquisition”
shall mean any transaction or series of related transactions, consummated on or
after the date hereof, by which the Borrower directly, or indirectly through
one or more Subsidiaries, (i) acquires any going business, division
thereof or line of business, or all or substantially all of the assets, of any
Person, whether through purchase of assets, merger or otherwise, or (ii) acquires
securities or other ownership interests of any Person having at least a
majority of combined voting power of the then outstanding securities or other
ownership interests of such Person.

“Additional
Revolving Credit Lender” shall have the meaning given to such term in Section 2.20(a).

“Additional
Term Lender” shall have the meaning given to such term in Section 2.21(a).

“Adjusted Base
Rate” shall mean, at any time with respect to any Base Rate Loan of any
Class, a rate per annum equal to the Base Rate as in effect at such time plus
the Applicable Percentage for Base Rate Loans of such Class as in effect
at such time.

“Adjusted LIBOR
Rate” shall mean, at any time with respect to any LIBOR Loan of any Class,
a rate per annum equal to the LIBOR Rate as in effect at such time plus the
Applicable Percentage for LIBOR Loans of such Class as in effect at such
time.

“Administrative
Agent” shall mean Wachovia, in its capacity as Administrative Agent
appointed under Section 10.1,
and its successors and permitted assigns in such capacity.

“Affiliate”
shall mean, as to any Person, each other Person that directly, or indirectly
through one or more intermediaries, owns or controls, is controlled by or under
common control with, such Person or is a director or officer of such Person. For
purposes of this definition, with respect to any Person “control” shall
mean (i) the possession, direct or indirect, of the power to direct or
cause the direction of the management and policies of such Person, whether
through the ownership of voting securities, by contract or otherwise, or (ii) the
beneficial ownership of securities or other ownership interests of such Person
having 10% or more (A) of the combined voting power of the then outstanding
securities or other ownership interests of such Person (and apart from rights
accruing under special circumstances) ordinarily having the right to vote in
the election of directors or other governing body of such Person or (B) of
the Total Voting Power of such Person. Notwithstanding the foregoing, neither
the Administrative Agent nor any Lender shall be deemed an “Affiliate” of any
Credit Party.

“Aggregate
Revolving Credit Exposure” shall mean, at any time, the sum of (i) the
aggregate principal amount of Revolving Loans outstanding at such time, (ii) the
aggregate Letter of Credit Exposure of all Revolving Credit Lenders at such
time and (iii) the aggregate principal amount of Swingline Loans
outstanding at such time.

“Agreement”
shall mean this Credit Agreement, as amended, modified, restated or
supplemented from time to time in accordance with its terms.

“Applicable
Percentage” shall mean, at any time from and after the Closing Date, the
applicable percentage (i) to be added to the Base Rate for purposes of
determining the Adjusted Base Rate, (ii) to be added to the LIBOR Rate for
purposes of determining the Adjusted LIBOR 

 2
 

 

 

Rate and (iii) to be
used in calculating the commitment fee payable pursuant to Section 2.9(b), in each case as
determined under the following matrix with reference to the Total Leverage
Ratio:

	
  Level

  	
   

  	
  Total

  Leverage Ratio

  	
   

  	
  Applicable

  LIBOR Margin

  	
   

  	
  Applicable Base

  Rate Margin

  	
   

  	
  Applicable

  Commitment Fee

  Percentage

  	
   

  
	
  I

  	
   

  	
  Greater than or
  equal to 2.0 to 1.0 
 	
   

  	
  2.00

  	
  %

  	
  1.00

  	
  %

  	
  0.375

  	
  %

  
	
  II

  	
   

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

  	
   

  	
  1.50

  	
  %

  	
  0.50

  	
  %

  	
  0.375

  	
  %

  
	
  III

  	
   

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

  	
   

  	
  1.25

  	
  %

  	
  0.25

  	
  %

  	
  0.300

  	
  %

  
	
  IV

  	
   

  	
  Less than 1.0 to 1.0

  	
   

  	
  1.00

  	
  %

  	
  0.00

  	
  %

  	
  0.250

  	
  %

  

On each Adjustment Date (as hereinafter defined), the
Applicable Percentage for all Loans and the commitment fee payable pursuant to Section 2.9(b) shall be adjusted
effective as of such Adjustment Date (based upon the calculation of the Total
Leverage Ratio as of the last day of the Reference Period to which such
Adjustment Date relates) in accordance with the above matrix; provided, however,
that, notwithstanding the foregoing or anything else herein to the contrary, if
at any time the Borrower shall have failed to deliver any of the financial
statements as required by Sections 6.1(a) or
6.1(b), as the case may be, or the
Compliance Certificate as required by Section 6.2(a),
then at all times from and including the fifth (5th) Business Day following the date on
which such statements and Compliance Certificate are required to have been
delivered until the date on which the same shall have been delivered, each
Applicable Percentage shall be determined based on Level I above
(notwithstanding the actual Total Leverage Ratio). For purposes of this
definition, “Adjustment Date” shall mean, with respect to any Reference
Period of the Borrower, the tenth (10th) day (or, if such day is not a Business
Day, the next succeeding Business Day) after delivery by the Borrower in
accordance with Section 6.1(a) or
Section 6.1(b), as the case
may be, of (i) financial statements as of the end of and for such
Reference Period and (ii) a duly completed Compliance Certificate with
respect to such Reference Period.

“Approved Fund”
shall mean any trust, limited or general partnership, limited liability
company, corporation or other limited purpose entity that invests in loans (a “fund”)
and is managed by a Lender, an Affiliate of a Lender or the same investment
advisor of a Lender or by an Affiliate of such investment advisor, or any
finance company, insurance company, investment bank or other financial
institution which temporarily warehouses loans for any of the foregoing.

“Arranger”
shall mean Wachovia Capital Markets, LLC and its successors.

“Asset
Disposition” shall mean any sale, assignment, transfer or other disposition
by the Borrower or any of its Domestic Subsidiaries to any other Person,
whether in one transaction or in a series of related transactions, of any of
its assets, business units or other properties 

 3
 

 

 

(including any interests
in property, whether tangible or intangible, and including Capital Stock of
Subsidiaries), excluding (i) any such sale, assignment, transfer or other
disposition permitted under Sections 8.4(i),
8.4(ii), 8.4(iii) and 8.4(iv), (ii) any Debt
Issuance, Equity Issuance or Casualty Event, and (iii) any other such
sales, assignments, transfers or other dispositions the Net Cash Proceeds from
which do not exceed $1,500,000 in any single fiscal year.

“Assignee”
shall have the meaning given to such term in Section 11.7(a).

“Assignment and
Acceptance” shall mean an Assignment and Acceptance entered into between a
Lender and an Assignee and accepted by the Administrative Agent and, if
appropriate, the Borrower, in substantially the form of Exhibit D.

“Authorized
Officer” shall mean, with respect to any action specified herein, any
officer of the Borrower duly authorized by resolution of the board of directors
of the Borrower to take such action on its behalf, and whose signature and
incumbency shall have been certified on behalf of the Borrower to the
Administrative Agent by the secretary or an assistant secretary of the
Borrower.

“Bankruptcy
Code” shall mean 11 U.S.C. §§ 101 et  seq., as amended
from time to time, and any successor statute.

“Bankruptcy
Event” shall mean the occurrence of an Event of Default pursuant to Section 9.1(f) or Section 9.1(g).

“Base Rate”
shall mean the higher of (i) the per annum interest rate publicly
announced from time to time by Wachovia in Charlotte, North Carolina, to be its
prime rate (which may not necessarily be its lowest or best lending rate), as
adjusted to conform to changes as of the opening of business on the date of any
such change in such prime rate, and (ii) the Federal Funds Rate plus 0.5%
per annum, as adjusted to conform to changes as of the opening of business on
the date of any such change in the Federal Funds Rate.

“Base Rate Loan”
shall mean, at any time, any Loan that bears interest at such time at the
applicable Adjusted Base Rate.

“Borrower”
shall have the meaning given to such term in the introductory paragraph hereof.

“Borrowing”
shall mean the incurrence by the Borrower (including as a result of conversions
and continuations of outstanding Loans pursuant to Section 2.11) on a single date of a group of Loans of a
single Class and Type (or a Swingline Loan made by the Swingline Lender)
and, in the case of LIBOR Loans, as to which a single Interest Period is in
effect.

“Borrowing Date”
shall mean, with respect to any Borrowing, the date upon which such Borrowing
is made.

“Business Day”
shall mean (i) any day other than a Saturday or Sunday, a legal holiday or
a day on which commercial banks in Charlotte, North Carolina or New York, New
York are authorized or required by law to be closed and (ii) in respect of
any determination relevant to a 

 4
 

 

 

LIBOR Loan, any such day
that is also a day on which trading in Dollar deposits is conducted by banks in
London, England in the London interbank Eurodollar market.

“Capital Expenditures”
shall mean, for any period, the aggregate amount paid in cash that would, in
accordance with GAAP, be included on the consolidated statement of cash flows
of the Borrower and its Subsidiaries for such period as additions to equipment,
fixed assets, real property or improvements or other capital assets (including,
without limitation, Capital Lease expenditures); provided, however,
that Capital Expenditures shall not include any such expenditures (i) for
replacements and substitutions for capital assets, to the extent made with the
proceeds of insurance in accordance with Section 2.6(f),
(ii) for replacements and substitutions for capital assets, to the extent
made with proceeds from the sale, exchange or other disposition of assets as
permitted under Sections 8.4(iii), 8.4(iv) or 8.4(v) or (iii) made as part of
a Permitted Acquisition.

“Capital Lease”
shall mean, with respect to any Person, any lease of property (whether real,
personal or mixed) by such Person as lessee that is or is required to be, in
accordance with GAAP, recorded as a capital lease on such Person’s balance
sheet.

“Capital Stock”
shall mean (i) with respect to any Person that is a corporation, any and
all shares, interests or equivalents in capital stock (whether voting or
nonvoting, and whether common or preferred) of such corporation, and (ii) with
respect to any Person that is not a corporation, any and all partnership,
membership, limited liability company or other equity interests of such Person;
and in each case, any and all warrants, rights or options to purchase any of
the foregoing.

“Cash
Collateral Account” shall have the meaning given to such term in Section 3.8.

“Cash
Equivalents” shall mean (i) securities issued or unconditionally
guaranteed or insured by the United States of America or any agency or
instrumentality thereof, backed by the full faith and credit of the United
States of America and maturing within one year from the date of acquisition (“Government
Obligations”), (ii) commercial paper issued by any Person organized
under the laws of the United States of America, maturing within 364 days from
the date of acquisition and, at the time of acquisition, having a rating of at
least A-1 or the equivalent thereof by Standard & Poor’s Ratings
Services, at least P-1 or the equivalent thereof by Moody’s Investors
Service, Inc. or at least F-1 or the equivalent thereof by Fitch, (iii) time
deposits and certificates of deposit maturing within 364 days from the date of
issuance and issued by, or demand deposits with, (A) a bank or trust
company organized under the laws of the United States of America or any state
thereof (y) that has combined capital and surplus of at least $250,000,000
or (z) that has (or is a subsidiary of a bank holding company that has) a
long-term unsecured debt rating of at least A or the equivalent thereof by
Standard & Poor’s Ratings Services or Fitch or at least A2 or the
equivalent thereof by Moody’s Investors Service, Inc., or (B) any
Eligible Assignee that is a commercial bank, (iv) repurchase obligations
with a term not exceeding thirty (30) days with respect to underlying
securities of the types described in clause (i) above entered into
with any bank or trust company meeting the qualifications specified in
clause (iii) above, (v) obligations of any state of the United
States of America or any political subdivision thereof, for the payment of the
principal and redemption price of, and interest on, which there shall have been
irrevocably deposited Government Obligations in amounts sufficient 

 5
 

 

 

to provide such payment,
and (vi) money market funds at least ninety-five percent (95%) of the
assets of which are continuously invested in securities of the foregoing types;
provided that in the case of any investment by a Foreign Subsidiary, “Cash
Equivalents” shall also include (a) direct obligations of the sovereign
nation (or any political subdivision or agency thereof) in which such Foreign
Subsidiary is organized and is conducting business or in obligations fully and
unconditionally guaranteed by such sovereign nation (or any political
subdivision or agency thereof), (b) investments of the type and maturity
described in clauses (i), (ii), (iii), (iv) and (v) above of
foreign obligors, which investments or obligors (or the parents of such
obligors) have ratings described in such clauses or equivalent ratings from
comparable foreign rating agencies, and (c) money market funds at least
ninety-five percent (95%) of the assets of which are continuously invested in
securities of the foregoing types.

“Casualty Event”
shall mean, with respect to any property (including any interest in property)
of the Borrower or any of its Domestic Subsidiaries, any loss of, damage to, or
condemnation or other taking of, such property for which the Borrower or such
Domestic Subsidiary receives insurance proceeds, proceeds of a condemnation
award or other compensation.

“Class”
shall have the meaning given to such term in Section 2.2(a).

“Closing Date”
shall mean the date upon which the Existing Credit Agreement is amended and
restated, and the extensions of credit are made, pursuant to this Agreement,
which shall be the date upon which each of the conditions set forth in Sections 4.1 and 4.2 shall have been satisfied or waived in
accordance with the terms of this Agreement.

“Collateral”
shall mean all the assets, property and interests in property that shall from
time to time be pledged or be purported to be pledged as direct or indirect
security for the Obligations pursuant to any one or more of the Security
Documents.

“Commitment”
shall mean, with respect to any Lender, such Lender’s Term A-1 Loan
Commitment, Incremental Term Loan Commitment and/or Revolving Credit
Commitment, as applicable.

“Compliance
Certificate” shall mean a fully completed and duly executed certificate in
the form of Exhibit C,
together with a Covenant Compliance Worksheet.

“Consolidated
EBITDA” shall mean, for any Reference Period, the aggregate of (i) Consolidated
Net Income for such Reference Period, plus (ii) the sum (without
duplication) of (A) Consolidated Interest Expense, (B) federal,
state, local and other income taxes, (C) depreciation and amortization, (D) noncash
charges related to Hedge Agreements, (E) losses from Asset Dispositions
(including, for this purpose, any asset dispositions expressly excluded from
the definition of such term under item (iii) of such definition and
any asset dispositions made pursuant to Section 8.4(iv)),
(F) extraordinary or nonrecurring noncash losses or charges relating to
the impairment of goodwill calculated in accordance with FAS 142, and (G) up
to $2,500,000 in extraordinary
or nonrecurring noncash losses or charges (excluding noncash charges relating
to accounts receivable or inventories) (it being understood that the inclusion
of any greater amount shall require the approval of the Required Lenders), in each case under 

 6
 

 

 

clauses (A) through
(G) above to the extent taken into account in the calculation of
Consolidated Net Income for such Reference Period and all calculated in
accordance with GAAP (provided that any cash expenses in respect of or
associated with any such losses, expenses or charges in clauses (F) and
(G) above will be included (i.e., deducted) in the calculation of
Consolidated EBITDA for the Reference Period in which expended), minus (iii) the
sum (without duplication) of (A) noncash gains related to Hedge
Agreements, (B) gains from Asset Dispositions (including, for this
purpose, any asset dispositions expressly excluded from the definition of such
term as item (iii) of such definition and any asset dispositions made
pursuant to Section 8.4(iv)),
and (C) other extraordinary or nonrecurring gains (including in connection
with the sale or write-up of assets) and other noncash credits increasing
income for such Reference Period, in each case under clauses (A) through
(C) above to the extent taken into account in the calculation of
Consolidated Net Income for such Reference Period and all calculated in
accordance with GAAP; provided that Consolidated EBITDA (1) shall
be deemed to include, without duplication, historical Consolidated EBITDA of
any Person acquired in a Permitted Acquisition and operated by the Borrower
after the commencement of the relevant Reference Period, as if such Person had
been acquired by the Borrower as of the first day of such Reference Period
(such Consolidated EBITDA calculated for such Person and its Subsidiaries for
such Reference Period in the same manner as Consolidated EBITDA is calculated
for the Borrower and all of its Subsidiaries for such Reference Period as set
forth herein, mutatis  mutandis), but only so long as the
Consolidated EBITDA of such Person is supported by financial statements of such
Person or other financial data reasonably acceptable to the Administrative
Agent, (2) shall be deemed to exclude the results of the operation of any
Person or business sold or disposed of by the Borrower at any time after the
first day of the relevant Reference Period, and (3) shall be increased by
any cost savings demonstrated by the Borrower as reasonably likely to occur as
a result of a Permitted Acquisition and which are reasonably acceptable to the
Administrative Agent, which savings shall be deemed to have been realized on
the first day of the relevant Reference Period.

“Consolidated Fixed Charges” shall mean, for
any Reference Period, the aggregate (without duplication) of the following, all
determined on a consolidated basis for the Borrower and its Subsidiaries in
accordance with GAAP for such Reference Period: (a) Consolidated Interest
Expense for such Reference Period, (b) aggregate cash tax expense for
federal (or national), state, local and other income taxes for such Reference
Period, (c) Capital Expenditures for such Reference Period, (d) the
aggregate (without duplication) of all scheduled payments of principal on
Funded Debt (with respect to the Term Loans, as set forth in Sections 2.6(a) and 2.6(b))
required to have been made by the Borrower and its Subsidiaries during such
Reference Period (whether or not such payments are actually made), it being
understood (for the avoidance of doubt) that prepayments of the Term Loans made
during any Reference Period shall not be included under this clause (d) for
such Reference Period, and (e) the aggregate of all Restricted Payments
made by the Borrower or any of its Subsidiaries during such Reference Period.

“Consolidated
Interest Expense” shall mean, for any Reference Period, the sum
(without duplication) of (i) total interest expense (calculated net of
interest income) of the Borrower and its Subsidiaries for such Reference Period
in respect of Consolidated Total Funded Debt (including, without limitation,
all such interest expense accrued or capitalized during such Reference Period,
whether or not actually paid during such Reference Period), determined on a
consolidated basis in accordance with GAAP, (ii) all net amounts payable
under or in respect of 

 7
 

 

 

Hedge Agreements, to the
extent paid or accrued by the Borrower and its Subsidiaries during such
Reference Period, and (iii) all recurring unused fees and other ongoing
fees in respect of Funded Debt (including the unused fees and letter of credit
fees provided for under Section 2.9 of this Agreement) paid, accrued or
capitalized by the Borrower and its Subsidiaries during such Reference Period; provided,
however, that solely for purposes of calculating the Interest Coverage
Ratio and the Fixed Charge Coverage Ratio, all noncash expenses, fees and other
amounts of the types described in clauses (i) through (iii) above
(including, without limitation, the amortization or write-off of deferred
financing fees, debt discount and debt issuance costs and commissions, premiums
paid in respect of Hedge Agreements, and other noncash fees and charges
associated with Indebtedness) shall be excluded in the determination of
Consolidated Interest Expense and Consolidated Fixed Charges.

“Consolidated
Net Income” shall mean, for any Reference Period, net income (or loss) for
the Borrower and its Subsidiaries for such Reference Period, determined on a
consolidated basis in accordance with GAAP (after deduction for minority
interests); provided that, in making such determination, there shall be
excluded (i) the net income of any other Person that is not a Subsidiary
of the Borrower (or is accounted for by the Borrower by the equity method of
accounting) except to the extent of actual payment of cash dividends or
distributions by such Person to the Borrower or any Subsidiary of the Borrower
during such period, (ii) the net income (or loss) of any other Person
acquired by, or merged with, the Borrower or any of its Subsidiaries for any
period prior to the date of such acquisition, and (iii) the net income of
any Subsidiary of the Borrower to the extent that the declaration or payment of
dividends or similar distributions by such Subsidiary of such net income is not
at the time permitted by operation of the terms of its charter, certificate of
incorporation or formation or other constituent document or any agreement or
instrument (other than a Credit Document) or Requirement of Law applicable to
such Subsidiary.

“Consolidated
Total Funded Debt” shall mean, as of any date of determination, the
aggregate (without duplication) of all Funded Debt of the Borrower and its
Subsidiaries, net of their Cash and Cash Equivalents held in a branch of a bank
or other financial institution located in the United States in excess of
$1,500,000, as of such date, determined on a consolidated basis in accordance
with GAAP. For purposes of determining Consolidated Total Funded Debt as of any
date, each Guaranty Obligation of the Borrower and its Subsidiaries required to
be included in such determination shall be valued at the maximum aggregate
principal amount (whether or not drawn or outstanding) of the Indebtedness that
is the corresponding “primary obligation” (as such term is defined in the
definition of Guaranty Obligation) as of such date.

“Contingent
Purchase Price GAAP Amount” shall mean, at any time, the Contingent
Purchase Price Obligation liability that, in accordance with GAAP, should be
recorded at such time as a liability on the balance sheet, or (without
duplication) an expense on the income statement, of the Borrower and its
Subsidiaries.

“Contingent
Purchase Price Obligations” shall mean any earnout obligations or similar
deferred or contingent purchase price obligations of the Borrower or any of its
Subsidiaries incurred or created in connection with an Acquisition.

 8
 

 

 

“Contingent
Purchase Price Reserve Amount” shall mean, with respect to any Contingent
Purchase Price Obligation, as of any date of determination, the maximum amount
payable with respect to such Contingent Purchase Price Obligation on such date
of determination (on a pro forma basis, assuming the consummation of any
Acquisition to be consummated on such date of determination) pursuant to the
acquisition agreement and other documentation evidencing such Contingent
Purchase Price Obligation, assuming the remaining maximum performance standards
related thereto are satisfied; provided that, to the extent that any
portion of a Contingent Purchase Price Obligation becomes a fixed, matured or
earned amount (through satisfaction of performance goals or targets or
otherwise), the Contingent Purchase Price Reserve Amount for such fixed amount
shall be the Contingent Purchase Price GAAP Amount therefor; and provided
further that, to the extent the calculation of the maximum amount
payable with respect to a Contingent Purchase Price Obligation cannot be
determined on the date of such determination, such amount shall be determined
in good faith by the Administrative Agent after consultation with the Borrower.

“Covenant
Compliance Worksheet” shall mean a fully completed worksheet in the form of
Attachment A to Exhibit C.

“Credit
Documents” shall mean this Agreement, the Notes, the Letters of Credit, the
Fee Letter, the Security Agreement, the Pledge Agreement, the Mortgages, any
other Security Documents, the Subsidiary Guaranty and all other written
agreements, instruments, documents and certificates in favor of the
Administrative Agent and the Lenders now or hereafter executed and delivered to
the Administrative Agent or any Lender by or on behalf of the Borrower or any
other Credit Party with respect to this Agreement, in each case as amended,
modified, supplemented or restated from time to time, but specifically
excluding any Hedge Agreement to which the Borrower and any Lender or Affiliate
of any Lender are parties.

“Credit Parties”
shall mean the Borrower, the Borrower’s Subsidiaries, and their respective
successors.

“Debt Issuance”
shall mean the issuance or sale by the Borrower or any of its Subsidiaries of
any debt securities or other Indebtedness, whether in a public offering or
otherwise, except for any Indebtedness permitted under Section 8.2.

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

“Defaulting
Lender” shall mean any Lender that (i) has refused to fund, or
otherwise defaulted in the funding of, its ratable share of any Borrowing
requested and permitted to be made hereunder, including the funding of a
participation interest in Letters of Credit or Swingline Loans in accordance
with the terms hereof, (ii) has failed to pay to the Administrative Agent
or any Lender when due an amount owed by such Lender pursuant to the terms of
this Credit Agreement, or (c) has been deemed insolvent or has become
subject to a bankruptcy or insolvency proceeding or to a receiver, trustee or
similar official, and such refusal has not been withdrawn or such default has
not been cured within three (3) Business Days.

 9
 

 

 

“Disqualified
Capital Stock” shall mean, with respect to any Person, any Capital Stock of
such Person that, by its terms (or by the terms of any security into which it
is convertible or for which it is exchangeable), or upon the happening of any
event or otherwise, (i) matures or is mandatorily redeemable or subject to
any mandatory repurchase requirement, pursuant to a sinking fund obligation or
otherwise, (ii) is redeemable or subject to any mandatory repurchase
requirement at the sole option of the holder thereof, or (iii) is
convertible into or exchangeable for (whether at the option of the issuer or
the holder thereof) (y) debt securities or (z) any Capital Stock
referred to in (i) or (ii) above, in each case under (i), (ii) or
(iii) above at any time on or prior to the first anniversary of the later
of the Term A Loan Maturity Date, the Term A-1 Loan Maturity Date or the
Revolving Credit Maturity Date; provided, however, that only the
portion of Capital Stock that so matures or is mandatorily redeemable, is so
redeemable at the option of the holder thereof, or is so convertible or
exchangeable on or prior to such date shall be deemed to be Disqualified
Capital Stock.

“Dollars”
or “$” shall mean dollars of the United States of America.

“Documentation
Agents” shall mean CIT Lending Services Corporation and Charter One Bank,
N.A. in their capacity as such under Section 10.12,
and their respective successors and permitted assigns in such capacity.

“Domestic
Subsidiary” shall mean any Subsidiary that is not a Foreign Subsidiary.

“Domestic
Subsidiary Guarantor” shall mean any Domestic Subsidiary that is also a
Subsidiary Guarantor.

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

“ERISA
Affiliate” shall mean any Person (including any trade or business, whether
or not incorporated) that would be deemed to be under “common control” with, or
a member of the same “controlled group” as, the Borrower or any of its
Subsidiaries, within the meaning of Sections 414(b), (c), (m) or (o) of
the Internal Revenue Code or Section 4001 of ERISA.

“ERISA Event”
shall mean any of the following with respect to a Plan or Multiemployer Plan,
as applicable:  (i) a Reportable
Event, (ii) a complete or partial withdrawal by the Borrower or any ERISA
Affiliate from a Multiemployer Plan that results in liability under Section 4201
or 4204 of ERISA, or the receipt by the Borrower or any ERISA Affiliate of
notice from a Multiemployer Plan that it is in reorganization or insolvency
pursuant to Section 4241 or 4245 of ERISA or that it intends to terminate
or has terminated under Section 4041A of ERISA, (iii) the distribution
by the Borrower or any ERISA Affiliate under Section 4041 or 4041A of
ERISA of a notice of intent to terminate any Plan or the taking of any action
to terminate any Plan, (iv) the commencement of proceedings by the PBGC
under Section 4042 of ERISA for the termination of, or the appointment of
a trustee to administer, any Plan, or the receipt by the Borrower or any ERISA
Affiliate of a notice from any Multiemployer Plan that such action has been
taken by the PBGC with respect to such Multiemployer Plan, (v) the
institution of a proceeding by any fiduciary of any Multiemployer Plan against
the Borrower or any ERISA Affiliate to enforce 

 10
 

 

 

Section 515 of
ERISA, which is not dismissed within thirty (30) days, (vi) the imposition
upon the Borrower or any ERISA Affiliate of any liability under Title IV of
ERISA, other than for PBGC premiums due but not delinquent under Section 4007
of ERISA, or the imposition or threatened imposition of any Lien upon any
assets of the Borrower or any ERISA Affiliate as a result of any alleged
failure to comply with the Internal Revenue Code or ERISA in respect of any
Plan, (vii) the engaging in or otherwise becoming liable for a nonexempt
Prohibited Transaction by the Borrower or any ERISA Affiliate, or a violation
of the applicable requirements of Section 404 or 405 of ERISA or the
exclusive benefit rule under Section 401(a) of the Internal
Revenue Code by any fiduciary of any Plan for which the Borrower or any of its
ERISA Affiliates may be directly or indirectly liable, (viii) the
occurrence with respect to any Plan of any “accumulated funding deficiency”
(within the meaning of Section 302 of ERISA and Section 412 of the
Internal Revenue Code), whether or not waived, or (ix) the adoption of an
amendment to any Plan that, pursuant to Section 401(a)(29) of the Internal
Revenue Code or Section 307 of ERISA, would result in the loss of
tax-exempt status of the trust of which such Plan is a part if the Borrower or
an ERISA Affiliate fails to timely provide security to such Plan in accordance
with the provisions of such sections.

“Eligible
Assignee” shall mean (i) a Lender, (ii) an Affiliate of a Lender,
(iii) an Approved Fund with respect to a Lender, and (iv) any other
Person (other than a natural person) approved by (x) the Administrative
Agent, (y) in the case of any assignment of a Revolving Credit Commitment
or portion thereof, the Issuing Lender, and (z) unless a Default or Event
of Default has occurred and is continuing, the Borrower (each such approval to
be evidenced by the approving party’s counter execution of the relevant
Assignment and Acceptance and not to be unreasonably withheld or delayed); provided,
however, that for purposes of clauses (i) through (iii) of
this definition, with respect to assignments of a Revolving Credit Commitment
or portion thereof the term “Eligible Assignee” shall mean only another
Revolving Credit Lender or an Affiliate of a Revolving Credit Lender; and provided
further that (y) in no event shall any Credit Party qualify as an
Eligible Assignee and (z) no Affiliate of the Borrower shall qualify as an
Eligible Assignee.

“Environmental
Claims” shall mean any and all actions, suits, demands, demand letters,
claims, liens, notices of noncompliance or violation, investigations by a
Governmental Authority, or proceedings (including, without limitation,
administrative, regulatory and judicial proceedings) relating in any way to any
Hazardous Substance, any actual or alleged violation of or liability under any
Environmental Law or relating to any actual or alleged violation of any permit
issued, or any approval given, under any Environmental Law (collectively, “Claims”),
including, without limitation, (i) any and all Claims by Governmental
Authorities for enforcement, cleanup, removal, response, remedial or other
actions or damages pursuant to any applicable Environmental Law and (ii) any
and all Claims by any third party seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief in connection
with any Hazardous Substance or arising from alleged injury or threat of injury
to human health or the environment.

“Environmental
Laws” shall mean any and all federal, state and local laws, statutes,
ordinances, rules, regulations, permits, licenses, approvals, rules of
common law and orders of courts or Governmental Authorities, relating to the
protection of human health, occupational safety with respect to exposure to
Hazardous Substances, or the environment, now or hereafter in 

 11

 

 

effect, and in each case
as amended from time to time, including, without limitation, requirements
pertaining to the manufacture, processing, distribution, use, treatment,
storage, disposal, transportation, handling, reporting, licensing, permitting,
investigation or remediation of Hazardous Substances.

“Equity
Issuance” shall mean the issuance, sale or other disposition by the
Borrower or any of its Subsidiaries of its Capital Stock, any rights, warrants
or options to purchase or acquire any shares of its Capital Stock or any other
security or instrument representing, convertible into or exchangeable for an
equity interest in the Borrower or any of its Subsidiaries; provided, however,
that the term Equity Issuance shall not include the issuance or sale of (i) any
Capital Stock by any of the Subsidiaries of the Borrower to the Borrower or any
other Subsidiary of the Borrower, (ii) any Capital Stock of the Borrower
issued or sold in connection with any Permitted Acquisition and constituting
all or a portion of the applicable purchase price, (iii) any Capital Stock
of the Borrower, any rights or options for the Borrower’s Capital Stock, and
the underlying Capital Stock issued upon the exercise thereof, issued, sold or
granted to managers, directors and employees of the Borrower, and (iv) the
Warrants and any Capital Stock issued upon exercise thereof.

“Engagement
Letter” shall mean the engagement letter from the Administrative Agent and
the Arranger to the Borrower, dated May 12, 2006, as amended, modified or
supplemented from time to time.

“Event of
Default” shall have the meaning given to such term in Section 9.1.

“Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended from time to time,
and any successor statute, and all rules and regulations from time to time
promulgated thereunder.

“Existing
Credit Agreement” shall have the meaning given to such term in the
Background Statement of this Agreement.

“Existing Term
Loans” shall have the meaning given to such term in Section 2.1(a).

“Fair Market Value”
shall mean, with respect to any Capital Stock of the Borrower given in
connection with an Acquisition, the value given to such Capital Stock for
purposes of such Acquisition by the parties thereto, as and when determined in
good faith pursuant to the relevant acquisition agreement or otherwise in
connection with such Acquisition.

“Federal Funds
Rate” shall mean, for any period, a fluctuating per annum interest rate
(rounded upwards, if necessary, to the nearest 1/100 of one percentage point)
equal for each day during such period to the weighted average of the rates on
overnight federal funds transactions with members of the Federal Reserve System
arranged by federal funds brokers, as published for such day (or, if such day
is not a Business Day, for the next preceding Business Day) by the Federal
Reserve Bank of New York, or if such rate is not so published for any day that
is a Business Day, the average of the quotations for such day on such
transactions received by the Administrative Agent from three federal funds
brokers of recognized standing selected by the Administrative Agent.

 12
 

 

 

“Federal
Reserve Board” shall mean the Board of Governors of the Federal Reserve
System or any successor thereto.

“Fee Letter”
shall mean the letter from the Administrative Agent and the Arranger to the
Borrower, dated November 17, 2004, relating to certain fees payable by the
Borrower in respect of the transactions contemplated by this Agreement, as
amended, modified, restated or supplemented from time to time.

“Financial
Condition Certificate” shall mean a fully completed and duly executed
certificate, in substantially the form of Exhibit H,
together with the attachments thereto.

“Financial
Officer” shall mean, with respect to the Borrower, the chief financial
officer, vice president - finance, principal accounting officer or treasurer of
the Borrower.

“fiscal quarter”
or “FQ” shall mean a fiscal quarter of the Borrower and its
Subsidiaries.

“fiscal year”
or “FY” shall mean a fiscal year of the Borrower and its Subsidiaries.

“Fixed Charge
Coverage Ratio” shall mean, as of the last day of any Reference Period, the
ratio of (i) Consolidated EBITDA for such Reference Period to (ii) Consolidated
Fixed Charges for such Reference Period.

“Foreign
Subsidiary” shall mean a Subsidiary of the Borrower that is a “controlled
foreign corporation,” as such term is defined in Section 957 of the
Internal Revenue Code.

“Foreign
Working Capital Facility” shall mean a credit facility entered into by a
Foreign Subsidiary.

“Funded Debt”
shall mean, with respect to any Person, without duplication, the aggregate of (a) all
Indebtedness of such Person (other than Indebtedness of the types referred to
in clauses (iii) (but only to the extent letters of credit and
bankers’ acceptances are not drawn upon), (ix), (x) and (xi) of the
definition of “Indebtedness”), (b) all Guaranty Obligations with
respect to Funded Debt of other Persons, and (c) all Funded Debt (I) of
any partnership or unincorporated joint venture in which such Person is a
general partner or joint venturer to the extent such Person is liable therefor
or (II) secured by any Lien on any property or asset owned or held by such
Person regardless of whether or not the indebtedness secured thereby shall have
been incurred or assumed by such Person or is nonrecourse to the credit of such
Person.

“GAAP”
shall mean generally accepted accounting principles in the United States of
America, as set forth in the statements, opinions and pronouncements of the
Accounting Principles Board, the American Institute of Certified Public
Accountants and the Financial Accounting Standards Board, consistently applied
and maintained, as in effect from time to time (subject to the provisions of Section 1.2).

“Governmental
Authority” shall mean any nation or government, any state or other
political subdivision thereof and any central bank thereof, any municipal,
local, city or county government, and any entity exercising executive,
legislative, judicial, regulatory or 

 13
 

 

 

administrative functions
of or pertaining to government, and any corporation or other entity owned or
controlled, through stock or capital ownership or otherwise, by any of the
foregoing.

“Guarantor”
shall mean any of the Subsidiary Guarantors.

“Guaranty
Obligation” shall mean, with respect to any Person, any direct or indirect
liability of such Person with respect to any Indebtedness, liability or other
obligation (the “primary obligation”) of another Person (the “primary
obligor”), whether or not contingent, (i) to purchase, repurchase or
otherwise acquire such primary obligation or any property constituting direct
or indirect security therefor, (ii) to advance or provide funds (x) for
the payment or discharge of any such primary obligation or (y) to maintain
working capital or equity capital of the primary obligor or otherwise to
maintain the net worth or solvency or any balance sheet item, level of income
or financial condition of the primary obligor (including, without limitation,,
keep well agreements, maintenance agreements, comfort letters or similar
agreements or arrangements), (iii) to lease or purchase property,
securities or services primarily for the purpose of assuring the owner of any
such primary obligation of the ability of the primary obligor in respect
thereof to make payment of such primary obligation or (iv) otherwise to
assure or hold harmless the owner of any such primary obligation against loss
or failure or inability to perform in respect thereof; provided, however,
that, with respect to the Borrower and its Subsidiaries, the term Guaranty
Obligation shall not include endorsements for collection or deposit in the
ordinary course of business. The amount of any Guaranty Obligation of any
guaranteeing Person hereunder shall be deemed to be the lower of (a) an
amount equal to the stated or determinable amount of the primary obligation in
respect of which such Guaranty Obligation is made and (b) the maximum
amount for which such guaranteeing Person may be liable pursuant to the terms
of the instrument embodying such Guaranty Obligation, unless such primary
obligation and the maximum amount for which such guaranteeing Person may be
liable are not stated or determinable, in which case the amount of such
Guaranty Obligation shall be such guaranteeing Person’s maximum reasonably
anticipated liability in respect thereof as determined by such guaranteeing
Person in good faith.

“Hazardous
Substance” shall mean any substance or material meeting any one or more of
the following criteria:  (i) it is
or contains a substance designated as a hazardous waste, hazardous substance,
hazardous material, pollutant, contaminant or toxic substance under any
Environmental Law, (ii) it is toxic, explosive, corrosive, ignitable,
infectious, radioactive, mutagenic or otherwise hazardous, (iii) its
presence may require investigation or response under any Environmental Law, (iv) it
constitutes a nuisance, trespass or health or safety hazard to Persons or
neighboring properties, or (v) it is or contains, without limiting the
foregoing, asbestos, polychlorinated biphenyls, urea formaldehyde foam
insulation, petroleum hydrocarbons, petroleum derived substances or wastes,
crude oil, nuclear fuel, natural gas or synthetic gas.

“Hedge
Agreement” shall mean any interest or foreign currency rate swap, cap,
collar, option, hedge, forward rate or other similar agreement or arrangement
designed to protect against fluctuations in interest rates or currency exchange
rates.

“Increasing
Lender” shall have the meaning given to such term in Section 2.20(a).

 14
 

 

 

“Incremental Term Lender” shall mean any Lender
having an Incremental Term Loan Commitment with respect to any Series of
Incremental Term Loans (or, after the Incremental Term Loan Commitments with
respect to such Series have terminated, any Lender holding outstanding
Incremental Term Loans of such Series).

“Incremental Term Loan” shall have the meaning
given to such term in Section 2.21(a).

“Incremental Term Loan Amendment” shall have
the meaning given to such term in Section 2.21(c).

“Incremental Term Loan Commitment” shall mean,
with respect to any Lender at any time, the commitment of such Lender to make
Incremental Term Loans of a particular Series in an aggregate principal
amount at any time outstanding up to the amount set forth in the applicable
Incremental Term Loan Amendment or, if such Lender has entered into one or more
Assignment and Acceptances, the amount set forth for such Lender at such time
in the Register maintained by the Administrative Agent pursuant to Section 11.7(b) as such Lender’s “Incremental
Term Loan Commitment” with respect to such Series, in either case, as such
amount may be reduced at or prior to such time pursuant to the terms hereof.

“Incremental Term Loan Effective Date” shall
have the meaning given to such term in Section 2.21(c).

“Incremental Term Loan Maturity Date” shall
mean, with respect to any Series of Incremental Term Loans, the final
maturity date thereof as set forth in the applicable Incremental Term Loan
Amendment (which shall not be prior to the Term A-1 Loan Maturity Date).

“Incremental Term Note” shall mean, with
respect to any Term Lender requesting the same, the promissory note of the
Borrower in favor of such Term Lender evidencing the Incremental Term Loan of a
particular Series made by such Lender pursuant to this Agreement, in
substantially the form of promissory note indicated in the applicable
Incremental Term Loan Amendment with respect to such Series, together with any
amendments, modifications and supplements thereto, substitutions therefor and
restatements thereof.

“Indebtedness”
shall mean, with respect to any Person (without duplication), (i) all
obligations of such Person for borrowed money, (ii) all obligations of
such Person evidenced by notes, bonds, debentures or similar instruments, or
upon which interest payments are customarily made, (iii) the maximum
stated or face amount of all letters of credit and bankers’ acceptances issued
or created for the account of such Person and, without duplication, all drafts
drawn thereunder (to the extent unreimbursed), (iv) all obligations of
such Person to pay the deferred purchase price of property or services,
including any Seller Subordinated Indebtedness and including any Contingent
Purchase Price Obligations other than Contingent Purchase Price Obligations
that are payable in Capital Stock of the Borrower at the Borrower’s option (but
excluding (x) trade payables, other accounts payable and accrued expenses,
in each case to the extent incurred in the ordinary course of business and
outstanding for a period of time no greater than 120 days after such obligation
is incurred (regardless of actual terms), and (y) trade payables, other
accounts payable and accrued expenses between or among the Borrower and its
Subsidiaries, in each case to the extent incurred in the ordinary course of
business), (v) all 

 15
 

 

 

indebtedness created or
arising under any conditional sale or other title retention agreement with
respect to property acquired by such Person, (vi) all obligations for
principal of such Person as lessee under Capital Leases which obligations
should be recorded as a liability on a balance sheet of such Person under GAAP,
(vii) all Disqualified Capital Stock issued by such Person, with the
amount of Indebtedness represented by such Disqualified Capital Stock being
equal to the greater of its voluntary or involuntary liquidation preference and
its maximum fixed repurchase price, but excluding accrued dividends, if any
(for purposes hereof, the “maximum fixed repurchase price” of any Disqualified
Capital Stock that does not have a fixed repurchase price shall be calculated
in accordance with the terms of such Disqualified Capital Stock as if such
Disqualified Capital Stock were purchased on any date on which Indebtedness
shall be required to be determined pursuant to this Agreement, and if such price
is based upon, or measured by, the fair market value of such Disqualified
Capital Stock, such fair market value shall be determined reasonably and in
good faith by the board of directors or other governing body of the issuer of
such Disqualified Capital Stock), (viii) the principal balance outstanding
and owing by such Person under any synthetic lease, tax retention operating
lease or similar off-balance sheet financing product, (ix) all Guaranty
Obligations of such Person with respect to Indebtedness of another Person, (x) the
net termination obligations of such Person under any Hedge Agreements,
calculated as of any date as if such agreement or arrangement were terminated
as of such date, and (xi) all indebtedness of the types referred to in
clauses (i) through (x) above (A) of any partnership or
unincorporated joint venture in which such Person is a general partner or joint
venturer to the extent such Person is liable therefor or (B) secured by
any Lien on any property or asset owned or held by such Person regardless of
whether or not the indebtedness secured thereby shall have been incurred or
assumed by such Person or is nonrecourse to the credit of such Person; provided
that (A) Indebtedness of any Person shall not include any Contingent
Purchase Price Obligations of such Person except to the extent such obligations
constitute Contingent Purchase Price GAAP Amounts and (B) the amount of
Indebtedness that is nonrecourse to the obligor thereunder or to such Person or
for which recourse is limited to identified property shall be equal to the
lesser of (y) the principal amount of such obligation and (z) the
fair market value of such property as determined by such Person in good faith.

“Initial Loans”
shall have the meaning given to such term in Section 2.20(e).

“Intellectual
Property” shall mean (i) all inventions (whether or not patentable and
whether or not reduced to practice), all improvements thereto, and all patents,
patent applications, and patent disclosures, together with all reissues,
continuations, continuations-in-part, divisions, revisions, extensions, and
reexaminations thereof, (ii) all trademarks, service marks, trade dress,
logos, trade names, and corporate names, together with all goodwill associated
therewith, and all applications, registrations, and renewals in connection
therewith, (iii) all copyrightable works and all copyrights (registered
and unregistered), (iv) all trade secrets and confidential information
(including, without limitation, financial, business and marketing plans and customer
and supplier lists and related information), (v) all computer software and
software systems (including, without limitation, data, databases and related
documentation), (vi) all Internet web sites and domain names, (vii) all
technology, know-how, processes and other proprietary rights, and (viii) all
licenses or other agreements to or from third parties regarding any of the
foregoing.

 16
 

 

 

“Interest
Coverage Ratio” shall mean, as of the last day of any Reference Period, the
ratio of (i) Consolidated EBITDA for such Reference Period to (ii) Consolidated
Interest Expense for such Reference Period.

“Interest
Period” shall have the meaning given to such term in Section 2.10.

“Internal
Revenue Code” shall mean the Internal Revenue Code of 1986, as amended from
time to time, and any successor statute, and all rules and regulations
from time to time promulgated thereunder.

“Issuing Lender”
shall mean Wachovia in its capacity as issuer of the Letters of Credit, and its
successors in such capacity.

“LIBOR Loan”
shall mean, at any time, any Loan that bears interest at such time at the
applicable Adjusted LIBOR Rate.

“LIBOR Rate”
shall mean, with respect to each LIBOR Loan comprising part of the same
Borrowing for any Interest Period, an interest rate per annum obtained by
dividing (i) (y) the rate of interest (rounded upward, if necessary,
to the nearest 1/16 of one percentage point) appearing on Telerate Page 3750
(or any successor page) or (z) if no such rate is available, the rate of
interest determined by the Administrative Agent to be the rate or the
arithmetic mean of rates (rounded upward, if necessary, to the nearest 1/16 of
one percentage point) at which Dollar deposits in immediately available funds
are offered to first-tier banks in the London interbank Eurodollar market, in
each case under (y) and (z) above at approximately 11:00 a.m.,
London time, two (2) Business Days prior to the first day of such Interest
Period for a period substantially equal to such Interest Period and in an
amount substantially equal to the amount of Wachovia’s LIBOR Loan comprising
part of such Borrowing, by (ii) the amount equal to 1.00 minus the Reserve
Requirement (expressed as a decimal) for such Interest Period.

“Lender”
shall mean each bank or other financial institution signatory hereto and each
other bank or other financial institution that becomes a “Lender” hereunder
pursuant to Section 11.7, and
their respective successors and assigns.

“Lending Office”
shall mean, with respect to any Lender, the office of such Lender designated as
its “Lending Office” on Schedule 1.1(a) or
in an Assignment and Acceptance, or such other office as may be otherwise
designated in writing from time to time by such Lender to the Borrower and the
Administrative Agent. A Lender may designate separate Lending Offices as
provided in the foregoing sentence for the purposes of making or maintaining
different Types of Loans, and, with respect to LIBOR Loans, such office may be
a domestic or foreign branch or Affiliate of such Lender.

“Letter of
Credit Exposure” shall mean, with respect to any Revolving Credit Lender at
any time, such Lender’s ratable share (based on the proportion that its
Revolving Credit Commitment bears to the aggregate Revolving Credit Commitments
at such time) of the sum of (i) the aggregate Stated Amount of all
Letters of Credit outstanding at such time and (ii) the aggregate amount
of all Reimbursement Obligations outstanding at such time.

 17
 

 

 

“Letter of
Credit Maturity Date” shall mean the fifth (5th) Business Day prior to the Revolving
Credit Maturity Date.

“Letter of
Credit Notice” shall have the meaning given to such term in Section 3.2.

“Letters of
Credit” shall have the meaning given to such term in Section 3.1.

“Lien”
shall mean any mortgage, pledge, hypothecation, assignment, security interest,
lien (statutory or otherwise), preference, priority, charge or other
encumbrance of any nature, whether voluntary or involuntary, including, without
limitation, the interest of any vendor or lessor under any conditional sale
agreement, title retention agreement, Capital Lease or any other lease or
arrangement having substantially the same effect as any of the foregoing.

“Loans”
shall mean any or all of the Term Loans, the Revolving Loans and the Swingline
Loans.

“Margin Stock”
shall have the meaning given to such term in Regulation U.

“Material
Adverse Effect” shall mean a material adverse effect upon (i) the
financial condition, operations, business or properties of the Borrower and its
Subsidiaries, taken as a whole, (ii) the ability of the Credit Parties
(taken as a whole) to perform their material obligations under this Agreement
or any of the other Credit Documents or (iii) the legality, validity or
enforceability of this Agreement or any of the other Credit Documents or the
rights and remedies of the Administrative Agent and the Lenders hereunder and
thereunder taken as a whole.

“Mettis”
shall mean Mettis (UK) Limited, a company organized under the laws of England
and Wales with registered number 03532114.

“Mortgage”
shall mean any mortgage, deed of trust, deed to secure debt, collateral
assignment of lease or similar agreement or instrument pursuant to which any
Credit Party grants in favor of the Administrative Agent, for its benefit and
the benefit of the Lenders, a security interest in and Lien upon any fee or
leasehold interest in real property owned by it, as amended, modified, restated
or supplemented from time to time.

“Multiemployer
Plan” shall mean any “multiemployer plan” within the meaning of Section 4001(a)(3) of
ERISA to which the Borrower or any ERISA Affiliate makes, is making or is
obligated to make contributions or has made or been obligated to make
contributions within the five (5) year period prior to any date of
determination.

“Net Cash
Proceeds” shall mean (i) in the case of any Equity Issuance or Debt
Issuance, the aggregate cash payments received by the Borrower or any of its
Subsidiaries less (A) fees and expenses (including, without limitation,
underwriting and placement discounts and other reasonable costs associated
therewith, sales commissions, investment banking fees, and reasonable
accounting and legal fees and expenses) incurred by the Borrower or any of its
Subsidiaries in connection therewith, and (B) taxes paid or payable as a
result thereof, (ii) in the case of any Casualty Event, the aggregate cash
proceeds of insurance, condemnation awards and other compensation received by
the Borrower or any of its Domestic Subsidiaries in respect of 

 18
 

 

 

such Casualty Event less (A) fees
and expenses incurred by the Borrower or any of its Domestic Subsidiaries in
connection therewith and (B) contractually required repayments of
Indebtedness to the extent secured by Liens on the property subject to such
Casualty Event and any taxes paid or payable by the Borrower or any of its
Domestic Subsidiaries as a result of such Casualty Event, and (iii) in the
case of any Asset Disposition, the aggregate amount of all cash payments
received by the Borrower or any of its Domestic Subsidiaries in connection with
such Asset Disposition less (A) fees and expenses incurred by the Borrower
or any of its Domestic Subsidiaries in connection therewith, (B) Indebtedness
to the extent the amount thereof is secured by a Lien on the property that is
the subject of such Asset Disposition and the transferee of (or holder of the
Lien on) such property requires that such Indebtedness be repaid as a condition
to such Asset Disposition, (C) any taxes paid or payable by the Borrower
or any of its Domestic Subsidiaries as a result of such Asset Disposition, and (D) a
reasonable reserve established in good faith by the Borrower to satisfy any
indemnification obligations that may be incurred by the Borrower or any of its
Domestic Subsidiaries in connection with such Asset Disposition.

“Non-Stock
Acquisition Amount” shall mean, with respect to any Acquisition, the sum
(without duplication) of (i) the amount of cash paid on the Acquisition
closing date as part of the purchase price thereof by the Borrower and its
Subsidiaries to the selling company, stockholders or other selling Person or
Persons (the “Sellers”) in connection with such Acquisition, (ii) the
amount (determined by using the face amount or the principal amount payable at
maturity, whichever is greater) of all Indebtedness incurred, assumed or acquired
by the Borrower and its Subsidiaries in connection with such Acquisition, (iii) all
Contingent Purchase Price GAAP Amounts with respect to such Acquisition to the
extent required to be paid in cash or other consideration other than Capital
Stock of the Borrower, (iv) all amounts paid in respect of covenants not
to compete and consulting agreements entered into in connection with such
Acquisition (but in each case only to the extent such amounts exceed amounts
that would be paid under fair and reasonable terms no less favorable to the
Borrower than it would obtain in a comparable arms’-length transaction with a
third party in a transaction unrelated to such Acquisition), and (v) the
aggregate fair market value of all other real, mixed or personal property
(other than Capital Stock of the Borrower) paid as purchase price to the
Sellers by the Borrower and its Subsidiaries in connection with such
Acquisition.

“Non-U.S.
Lender” shall have the meaning given to such term in Section 2.17(d).

“Notes”
shall mean any or all of the Term Notes, the Revolving Notes and the Swingline
Note.

“Notice of
Borrowing” shall have the meaning given to such term in Section 2.2(b).

“Notice of
Conversion/Continuation” shall have the meaning given to such term in Section 2.11(b).

“Notice of
Swingline Borrowing” shall have the meaning given to such term in Section 2.2(d).

 19
 

 

 

“Obligations”
shall mean all principal of and interest (including, to the greatest extent
permitted by law, post-petition interest) on the Loans and Reimbursement Obligations
and all fees, expenses, indemnities and other obligations owing, due or payable
at any time by the Borrower or any Subsidiary Guarantor to the Administrative
Agent, any Lender, the Swingline Lender, the Issuing Lender or any other Person
entitled thereto, under this Agreement or any of the other Credit Documents,
and all payment and other obligations owing or payable at any time by the
Borrower to any Lender or any Affiliate of any Lender under or in connection
with any Hedge Agreement required or permitted by this Agreement, in each case
whether direct or indirect, joint or several, absolute or contingent, matured
or unmatured, liquidated or unliquidated, secured or unsecured, and whether
existing by contract, operation of law or otherwise.

“PBGC”
shall mean the Pension Benefit Guaranty Corporation established pursuant to
Subtitle A of Title IV of ERISA, and any successor thereto.

“Participant”
shall have the meaning given to such term in Section 11.7(d).

“PATRIOT Act”
shall mean the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism (USA PATRIOT Act of 2001), as
amended from time to time, and any successor statute, and all rules and
regulations from time to time promulgated thereunder.

“Payment Office”
shall mean the office of the Administrative Agent designated on Schedule 1.1(a) under the heading
“Instructions for wire transfers to the Administrative Agent,” or such other
office as the Administrative Agent may designate to the Lenders and the
Borrower for such purpose from time to time.

“Permitted
Acquisition” shall mean (A) any Acquisition with respect to which all
of the following conditions are satisfied: 
(i) each business acquired shall be within the permitted lines of
business described in Section 8.8,
(ii) any Capital Stock given as consideration in connection therewith
shall be Capital Stock of the Borrower, (iii) in the case of an
Acquisition involving the acquisition of control of Capital Stock of any
Person, immediately after giving effect to such Acquisition such Person (or the
surviving Person, if the Acquisition is effected through a merger or
consolidation) shall be a Wholly Owned Subsidiary of the Borrower, (iv) in
the case of an Acquisition of assets, the acquiring Person shall be a Wholly
Owned Subsidiary of the Borrower, (v) the Person to be acquired (or its
board of directors or equivalent governing body) has not (y) announced it
will oppose such Acquisition or (z) commenced any action which alleges
that such Acquisition violates, or will violate, any Requirement of Law, and (vi) all
of the conditions and requirements of Sections 6.8
and 6.9 applicable to such
Acquisition are satisfied; or (B) any other Acquisition to which the
Required Lenders (or the Administrative Agent on their behalf) shall have given
their prior written consent (which consent may be in their sole discretion and
may be given subject to such additional terms and conditions as the Required
Lenders shall establish) and with respect to which all of the conditions and
requirements set forth in this definition and in Sections 6.8 and 6.9,
and in or pursuant to any such consent, have been satisfied or waived in
writing by the Required Lenders (or the Administrative Agent on their behalf); provided
that with respect to each Permitted Acquisition (and, in any event, in order to
qualify as a “Permitted Acquisition”):

 20
 

 

 

(a)           no
Default or Event of Default shall have occurred and be continuing at the time
of the consummation of such Permitted Acquisition or would exist immediately
after giving effect thereto;

(b)           after
giving effect to such Permitted Acquisition, the Borrower shall be in
compliance with the financial covenants contained in Article VII, such compliance determined with regard to
calculations made on a pro forma basis for the Reference Period most recently
ended, calculated in accordance with GAAP as if each acquired Person or
business had been consolidated with the Borrower for those periods applicable
to such covenants; provided that, in addition to the foregoing, the
Total Leverage Ratio (calculated on a pro forma basis as set forth above after
giving effect to such Permitted Acquisition) shall not exceed the level that is
0.25 to 1.00 below the maximum Total Leverage Ratio permitted on the date of the
consummation of such Permitted Acquisition under Section 7.1;

(c)           the aggregate of the Total
Acquisition Amounts with respect to any Permitted Acquisition (other than any
Foreign Permitted Acquisition) shall not exceed $50,000,000 (including for this purpose, without duplication, all
Contingent Purchase Price Obligations incurred by the Borrower or its
Subsidiaries in connection with any such Permitted Acquisition that are paid at
a subsequent date, but excluding any such Contingent Purchase Price Obligations
paid in Capital Stock of the Borrower as part of a Permitted Acquisition that,
at the time of consummation thereof, qualified or would have qualified under
subsection (f) below);

(d)           the aggregate of the Total
Acquisition Amounts with respect to all Permitted Acquisitions involving the
Capital Stock, business or assets of any non-U.S. Person (“Foreign Permitted
Acquisitions”) consummated from and after the Closing Date shall not exceed
$25,000,000 (including for this
purpose, without duplication, all Contingent Purchase Price Obligations
incurred by the Borrower or its Subsidiaries in connection with any such
Foreign Permitted Acquisition that are paid at a subsequent date, but excluding
any such Contingent Purchase Price Obligations paid in Capital Stock of the
Borrower as part of a Foreign Permitted Acquisition that, at the time of
consummation thereof, qualified or would have qualified under subsection (f) below);

(e)           the
aggregate of the Total Acquisition Amounts with respect to all Permitted
Acquisitions (including Foreign Permitted Acquisitions) consummated from and
after the Closing Date shall not exceed $100,000,000 (including for this
purpose, without duplication, all Contingent Purchase Price Obligations
incurred by the Borrower or its Subsidiaries in connection with any such
Permitted Acquisition that are paid at a subsequent date, but excluding any
such Contingent Purchase Price Obligations paid in Capital Stock of the
Borrower as part of a Permitted Acquisition that, at the time of consummation thereof,
qualified or would have qualified under subsection (f) below); and

(f)            notwithstanding
clauses (c), (d) and (e) above, but subject to the other
provisions set forth in this definition and elsewhere in this Agreement, the
Borrower may consummate a Permitted Acquisition in which the Fair Market Value
of all Capital Stock

 21

 

 

of the Borrower issued or given in connection with such Permitted
Acquisition, when taken together with the aggregate of the Total Acquisition
Amounts with respect to all Foreign Permitted Acquisitions (or all Permitted
Acquisitions) consummated from and after the Closing Date, would exceed the
aggregate limits set forth in clauses (c), (d) and/or (e) above, as
the case may be (provided that in no event shall (i) the Non-Stock
Acquisition Amount for any Permitted Acquisition exceed $50,000,000, (ii) the
aggregate of all Non-Stock Acquisition Amounts with respect to Foreign
Permitted Acquisitions consummated from and after the Closing Date exceed
$25,000,000 or (iii) the aggregate of all Non-Stock Acquisition Amounts
with respect to all Permitted Acquisitions consummated from and after the
Closing Date exceed $100,000,000), but only so long as the Total Leverage Ratio
(calculated on a pro forma basis as set forth above after giving effect to such
Permitted Acquisition) does not exceed 1.75 to 1.0.

“Permitted Liens”
shall have the meaning given to such term in Section 8.3.

“Person”
shall mean any corporation, association, joint venture, partnership, limited
liability company, organization, business, individual, trust, government or
agency or political subdivision thereof or any other legal entity.

“Plan”
shall mean any “employee pension benefit plan” within the meaning of Section 3(2) of
ERISA that is subject to the provisions of Title IV of ERISA (other than a
Multiemployer Plan) and to which the Borrower or any ERISA Affiliate may have
any liability.

“Pledge
Agreement” shall mean a pledge agreement made by the Borrower and the
Subsidiaries of the Borrower party thereto in favor of the Administrative
Agent, in substantially the form of Exhibit F,
as amended, modified, restated or supplemented from time to time.

“Pro Forma
Balance Sheet” shall have the meaning given to such term in Section 4.1(j).

“Prohibited
Transaction” shall mean any transaction described in (i) Section 406
of ERISA that is not exempt by reason of Section 408 of ERISA or by reason
of a Department of Labor prohibited transaction individual or class exemption
or (ii) Section 4975(c) of the Internal Revenue Code that is not
exempt by reason of Section 4975(c)(2) or 4975(d) of the
Internal Revenue Code.

“Projections”
shall have the meaning given to such term in Section 5.11(c).

“Realty”
shall mean all real property and interests in real property now or hereafter
acquired or leased by any Credit Party.

“Reference
Period” with respect to any date of determination, shall mean the period of
twelve consecutive fiscal months of the Borrower immediately preceding such
date or, if such date is the last day of a fiscal quarter, the period of four
consecutive fiscal quarters ending on such date.

“Refunded Swingline
Loans” shall have the meaning given to such term in Section 2.2(e).

 22
 

 

 

“Register”
shall have the meaning given to such term in Section 11.7(b).

“Regulations D,
T, U and X” shall mean Regulations D, T, U and X, respectively, of the
Federal Reserve Board, and any successor regulations.

“Reimbursement
Obligation” shall have the meaning given to such term in Section 3.4.

“Reportable
Event” shall mean, with respect to any Plan, (i) any “reportable event”
within the meaning of Section 4043(c) of ERISA for which the 30-day
notice under Section 4043(a) of ERISA has not been waived by the PBGC
(including, without limitation, any failure to meet the minimum funding
standard of, or timely make any required installment under, Section 412 of
the Internal Revenue Code or Section 302 of ERISA, regardless of the
issuance of any waivers in accordance with Section 412(d) of the
Internal Revenue Code), (ii) any such “reportable event” subject to
advance notice to the PBGC under Section 4043(b)(3) of ERISA, (iii) any
application for a funding waiver or an extension of any amortization period
pursuant to Section 412 of the Internal Revenue Code, and (iv) a
cessation of operations described in Section 4062(e) of ERISA.

“Required
Lenders” shall mean, at any time, the Lenders holding outstanding Loans
(excluding Swingline Loans) and unutilized Commitments (or, after the
termination of the Revolving Credit Commitments, outstanding Loans, Letter of
Credit Exposure and participations in outstanding Swingline Loans) representing
at least a majority of the aggregate, at such time, of all outstanding Loans
(excluding Swingline Loans) and unutilized Commitments (or, after the
termination of the Revolving Credit Commitments, the aggregate at such time of
all outstanding Loans, Letter of Credit Exposure and participations in
outstanding Swingline Loans).

“Required
Revolving Credit Lenders” shall mean, at any time, the Revolving Credit
Lenders holding outstanding Revolving Loans and Unutilized Revolving Credit
Commitments (or, after the termination of the Revolving Credit Commitments,
outstanding Revolving Loans, Letter of Credit Exposure and participations in
outstanding Swingline Loans) representing at least a majority of the aggregate,
at such time, of all outstanding Revolving Loans and Unutilized Revolving
Credit Commitments (or, after the termination of the Revolving Credit
Commitments, the aggregate at such time of all outstanding Revolving Loans,
Letter of Credit Exposure and participations in outstanding Swingline Loans).

“Requirement of
Law” shall mean, with respect to any Person, the charter, articles or
certificate of organization or incorporation and bylaws or other organizational
or governing documents of such Person, and any statute, law, treaty, rule,
regulation, order, decree, writ, injunction or determination of any arbitrator
or court or other Governmental Authority, in each case applicable to or binding
upon such Person or any of its property or to which such Person or any of its
property is subject or otherwise pertaining to any or all of the transactions
contemplated by this Agreement and the other Credit Documents.

“Reserve
Requirement” shall mean, with respect to any Interest Period, the reserve
percentage (expressed as a decimal and rounded upwards, if necessary, to the next
higher 1/100th of 1%) in effect from time to time during such
Interest Period, as provided by the Federal Reserve Board, applied for
determining the maximum reserve requirements (including, without 

 23
 

 

 

limitation, basic,
supplemental, marginal and emergency reserves) applicable to Wachovia under
Regulation D with respect to “Eurocurrency liabilities” within the meaning of
Regulation D, or under any similar or successor regulation with respect to
Eurocurrency liabilities or Eurocurrency funding.

“Responsible
Officer” shall mean, with respect to any Credit Party, the president, the
chief executive officer, the chief financial officer, any executive officer, or
any other Financial Officer of such Credit Party, and any other officer or
similar official thereof responsible for the administration of the obligations
of such Credit Party in respect of this Agreement or any other Credit Document.

“Restricted
Payments” shall have the meaning given to such term in Section 8.6(a).

“Revolving
Credit Commitment” shall mean, with respect to any Lender at any time, the
commitment of such Lender to make Revolving Loans in an aggregate principal
amount at any time outstanding up to the amount set forth opposite such Lender’s
name on Schedule 1.1(a) under
the caption “Revolving Credit Commitment” or, if such Lender has entered into
one or more Assignment and Acceptances, the amount set forth for such Lender at
such time in the Register maintained by the Administrative Agent pursuant to Section 11.7(b) as such Lender’s “Revolving
Credit Commitment,” in either case, as such amount may be reduced at or prior
to such time pursuant to the terms hereof.

“Revolving Credit Commitment Increase” shall
have the meaning given to such term in Section 2.20(a).

“Revolving
Credit Commitment Increase Date” shall have the meaning given to such term
in Section 2.20(c).

“Revolving
Credit Exposure” shall mean, with respect to any Revolving Credit Lender at
any time, the sum of (i) the aggregate principal amount of all Revolving
Loans made by such Lender that are outstanding at such time, (ii) such
Lender’s Letter of Credit Exposure at such time and (iii) such Lender’s
Swingline Exposure at such time.

“Revolving
Credit Lender” shall mean any Lender having a Revolving Credit Commitment
(or, after the Revolving Credit Commitments have terminated, any Lender holding
outstanding Revolving Loans).

“Revolving
Credit Maturity Date” shall mean the fifth anniversary of the Closing Date.

“Revolving
Credit Termination Date” shall mean the Revolving Credit Maturity Date or
such earlier date of termination of the Revolving Credit Commitments pursuant
to Section 2.5 or Section 9.2.

“Revolving
Loans” shall have the meaning given to such term in Section 2.1(c).

“Revolving Note”
shall mean, with respect to any Revolving Credit Lender requesting the same,
the promissory note of the Borrower in favor of such Revolving Credit Lender
evidencing the Revolving Loans made by such Lender pursuant to Section 2.1(c), in 

 24
 

 

 

substantially the form of
Exhibit A-3, together
with any amendments, modifications and supplements thereto, substitutions
therefor and restatements thereof.

“Security
Agreement” shall mean the Security Agreement made by the Borrower and the
Subsidiaries of the Borrower party thereto in favor of the Administrative Agent,
in substantially the form of Exhibit E,
as amended, modified, restated or supplemented from time to time.

“Security
Documents” shall mean the Security Agreement, the Pledge Agreement and all
other pledge or security agreements, Mortgages, assignments or other similar
agreements or instruments executed and delivered by any Credit Party pursuant
to Section 6.9 or 6.10 or otherwise in connection with the
transactions contemplated hereby, in each case as amended, modified, restated
or supplemented from time to time.

“Seller
Subordinated Indebtedness” shall have the meaning given to such term in Section 8.2(viii).

“Series”
shall have the meaning given to such term in Section 2.21(a).

“Solvency
Certificate” means a certificate of the Borrower executed on its behalf by
the chief financial officer (or, in the absence of a chief financial officer,
the chief executive officer) of the Borrower, in form and substance
satisfactory to the Administrative Agent, certifying that the Credit Parties
taken as a whole on a consolidated basis (i) have capital sufficient to
carry on their businesses as conducted and as proposed to be conducted, (ii) have
assets with a fair saleable value, determined on a going concern basis, which
are (y) not less than the amount required to pay the probable liability on
their existing debts as they become absolute and matured in their ordinary
course and (z) greater than the total amount of their liabilities
(including identified contingent liabilities, valued at the amount that can
reasonably be expected to become absolute and matured in their ordinary
course), and (iii) do not intend to, and do not believe that they will,
incur debts or liabilities beyond their ability to pay such debts and
liabilities as they mature in their ordinary course.

“Stated Amount”
shall mean, with respect to any Letter of Credit at any time, the aggregate
amount available to be drawn thereunder at such time (regardless of whether any
conditions for drawing could then be met).

“Subordinated
Indebtedness” shall mean, collectively, (i) any Seller Subordinated
Indebtedness issued pursuant to Section 8.2(viii),
and (ii) any other unsecured Indebtedness of the Borrower and its
Subsidiaries that is expressly subordinated in right of payment and performance
to the Obligations and that is evidenced by a written instrument in form and
substance (including subordination provisions) reasonably acceptable to and
approved in writing by the Administrative Agent.

“Subsequent
Borrowings” shall have the meaning given to such term in Section 2.20(e).

“Subsidiary”
shall mean, with respect to any Person, any corporation or other Person of
which more than fifty percent (50%) of the outstanding Capital Stock having
ordinary voting power to elect a majority of the board of directors, board of
managers or other governing body of such Person, is at the time, directly or
indirectly, owned or controlled by such Person and one or 

 25
 

 

 

more of its other
Subsidiaries or a combination thereof (irrespective of whether, at the time,
securities of any other class or classes of any such corporation or other
Person shall or might have voting power by reason of the happening of any
contingency). When used without reference to a parent entity, the term “Subsidiary”
shall be deemed to refer to a Subsidiary of the Borrower.

“Subsidiary
Guarantor” shall mean any Subsidiary of the Borrower that is a guarantor of
the Obligations under the Subsidiary Guaranty (or under another guaranty
agreement in form and substance satisfactory to the Administrative Agent) and
has granted to the Administrative Agent a Lien upon and security interest in
its personal property assets pursuant to the Security Agreement.

“Subsidiary
Guaranty” shall mean a guaranty agreement made by the Subsidiary Guarantors
in favor of the Administrative Agent and the Lenders, in substantially the form
of Exhibit G, as amended,
modified, restated or supplemented from time to time.

“Swingline
Commitment” shall mean $5,000,000 or, if less, the aggregate Revolving
Credit Commitments at the time of determination, as such amount may be reduced
at or prior to such time pursuant to the terms hereof.

“Swingline
Exposure” shall mean, with respect to any Revolving Credit Lender at any
time, its maximum aggregate liability to make Refunded Swingline Loans pursuant
to Section 2.2(e) to
refund, or to purchase participations pursuant to Section 2.2(f) in, Swingline Loans that are
outstanding at such time.

“Swingline
Lender” shall mean Wachovia in its capacity as maker of Swingline Loans,
and its successors in such capacity.

“Swingline
Loans” shall have the meaning given to such term in Section 2.1(d).

“Swingline
Maturity Date” shall mean the date that is five (5) Business Days
prior to the Revolving Credit Maturity Date.

“Swingline Note”
shall mean, if requested by the Swingline Lender, the promissory note of the
Borrower in favor of the Swingline Lender evidencing the Swingline Loans made
by the Swingline Lender pursuant to Section 2.1(d),
in substantially the form of Exhibit A-4,
together with any amendments, modifications and supplements thereto,
substitutions therefor and restatements thereof.

“Symmetry USA”
shall mean Symmetry Medical USA Inc., a Delaware corporation and a Wholly Owned
Subsidiary of the Borrower.

“Syndication
Agent” shall mean General Electric Capital Corporation, in its capacity as
such under Section 10.12, and
its respective successors and permitted assigns in such capacity.

“Taxes”
shall have the meaning given to such term in Section 2.17(a).

 26
 

 

 

“Term A-1
Loan Commitment” shall mean, with respect to any Lender at any time, the
commitment of such Lender to make Term A-1 Loans in an aggregate
principal amount up to the amount set forth opposite such Lender’s name on Schedule 1.1(a) under the caption
“Term A-1 Loan Commitment” or, if such Lender has entered into one or
more Assignment and Acceptances, the amount set forth for such Lender at such
time in the Register maintained by the Administrative Agent pursuant to Section 11.7(b) as such Lender’s “Term
A-1 Loan Commitment,” as such amount may be reduced at or prior to such
time pursuant to the terms hereof.

“Term A Loan
Lender” shall mean any Lender holding outstanding Term A Loans.

“Term A-1
Loan Lender” shall mean any Lender having a Term A-1 Loan Commitment
(or, after the Term A-1 Loan Commitments have terminated, any Lender
holding outstanding Term A-1 Loans).

“Term A Loan
Maturity Date” shall mean December 14, 2009.

“Term A-1
Loan Maturity Date” shall mean the fifth anniversary of the Closing Date.

“Term A Loans”
shall mean the Existing Term Loans converted into loans under this Agreement
pursuant to Section 2.1(a).

“Term A-1
Loans” shall have the meaning given to such term in Section 2.1(a).

“Term Loans”
shall mean any or all of the Term A Loans, the Term A-1 Loans and the
Incremental Term Loans, as the context may require.

“Term A Note”
shall mean, with respect to any Term Lender requesting the same, the promissory
note of the Borrower in favor of such Term A Lender evidencing the Term A Loan
converted by such Lender pursuant to Section 2.1(a),
in substantially the form of Exhibit A-1,
together with any amendments, modifications and supplements thereto,
substitutions therefor and restatements thereof.

“Term A-1
Note” shall mean, with respect to any Term A-1 Lender requesting the
same, the promissory note of the Borrower in favor of such Term A-1
Lender evidencing the Term A-1 Loan made by such Lender pursuant to Section 2.1(a), in substantially the
form of Exhibit A-2,
together with any amendments, modifications and supplements thereto,
substitutions therefor and restatements thereof.

“Term Note”
shall mean a Term A Note, a Term A-1 Note or an Incremental Term Note, as
the context may require.

“Total
Acquisition Amount” shall mean, with respect to any Acquisition, the sum
(without duplication) of (i) the Non-Stock Acquisition Amount with respect
thereto and (ii) the Fair Market Value of all Capital Stock of the
Borrower issued or given in connection with such Acquisition.

 27
 

 

 

“Total Leverage
Ratio” shall mean, as of the last day of any Reference Period, the ratio of
(i) Consolidated Total Funded Debt as of such date to (ii) Consolidated
EBITDA for such Reference Period.

“Total Voting
Power” shall mean, with respect to any Person, the total number of votes
which may be cast in the election of directors of such Person at any meeting of
stockholders of such Person if all securities entitled to vote in the election
of directors of such Person (on a fully diluted basis, assuming the exercise,
conversion or exchange of all rights, warrants, options and securities exercisable
for, exchangeable for or convertible into, such voting securities) were present
and voted at such meeting (other than votes that may be cast only upon the
happening of a contingency).

“Transactions”
shall mean, collectively, (i) the initial extensions of credit hereunder
on the Closing Date, and (ii) the payment of permitted fees and expenses
in connection with the foregoing.

“Type”
shall have the meaning given to such term in Section 2.2(a).

“Unfunded
Pension Liability” shall mean, with respect to any Plan or Multiemployer
Plan, the excess of its benefit liabilities under Section 4001(a)(16) of
ERISA over the current value of its assets, determined in accordance with the
applicable assumptions used for funding under Section 412 of the Internal
Revenue Code for the applicable plan year.

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

“Unutilized
Swingline Commitment” shall mean, with respect to the Swingline Lender at
any time, the Swingline Commitment at such time less the aggregate
principal amount of all Swingline Loans that are outstanding at such time.

“Wachovia”
shall mean Wachovia Bank, National Association, and its successors and assigns.

“Warrants”
shall mean the warrants issued to the purchasers, or any assignee or successor
thereto, of certain subordinated notes of the Borrower, dated June 13,
2003.

“Wholly Owned”
shall mean, with respect to any Subsidiary of any Person, that 100% of the
outstanding Capital Stock of such Subsidiary (excluding any directors’
qualifying shares and shares required to be held by foreign nationals, in the
case of a Foreign Subsidiary) is owned, directly or indirectly, by such Person.

1.2           Accounting
Terms. Unless otherwise specified herein, all accounting terms used herein
shall be interpreted, all accounting determinations hereunder shall be made,
and all financial statements required to be delivered hereunder shall be
prepared in accordance with GAAP applied on a basis consistent with the most
recent audited consolidated financial 

 28
 

 

 

statements of the
Borrower delivered to the Lenders prior to the Closing Date; provided
that if the Borrower notifies the Administrative Agent that it wishes to amend
any financial covenant in Article VII
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 VII for
such purpose), then the Borrower’s compliance with such covenant shall be
determined on the basis of GAAP as 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. Notwithstanding the foregoing, no financial instrument issued by any
Credit Party shall be deemed to constitute Indebtedness or Funded Debt
hereunder, nor shall any payments or accruals of dividends to holders of such
financial instruments be deemed to constitute interest expense in respect of
Indebtedness or Funded Debt, in either case solely because FAS 150 requires
such financial instrument to be classified as a liability on its balance sheet
(unless such financial instrument constitutes Disqualified Capital Stock within
the meaning of that term hereunder).

1.3           Other
Terms; Construction.

(a)           Unless otherwise
specified or unless the context otherwise requires, all references herein to
sections, annexes, schedules and exhibits are references to sections, annexes,
schedules and exhibits in and to this Agreement, and all terms defined in this
Agreement shall have the defined meanings when used in any other Credit
Document or any certificate or other document made or delivered pursuant hereto.

(b)           All references
herein to the Lenders or any of them shall be deemed to include the Issuing
Lender and the Swingline Lender unless specifically provided otherwise or
unless the context otherwise requires.

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

(d)           The meanings given
to terms defined herein shall be equally applicable to both the singular and
plural form of such terms.

ARTICLE
II

AMOUNT AND TERMS OF THE LOANS

2.1           Commitments.

(a)           On
the Closing Date, each Term Loan (as defined in the Existing Credit Agreement)
outstanding under the Existing Credit Agreement (each, an “Existing Term
Loan”) is hereby converted into a Term A Loan under this Agreement in a
principal amount equal to the outstanding principal amount of such Existing
Term Loan, without any further action on behalf of any Person. All such Term A
Loans shall be of the same Type, and shall have the same Interest Period, as
the corresponding Existing Term Loans. To the extent repaid, Term A Loans may
not be reborrowed.

 29
 

 

 

(b)           Each
Term A-1 Loan Lender severally agrees, subject to and on the terms and
conditions of this Agreement, to make a loan (each, a “Term A-1 Loan,”
and collectively, the “Term A-1 Loans”) to the Borrower on the
Closing Date in a principal amount not to exceed its Term A-1 Loan
Commitment. No Term A-1 Loans shall be made at any time after the Closing
Date. To the extent repaid, Term A-1 Loans may not be reborrowed.

(c)           Each
Revolving Credit Lender severally agrees, subject to and on the terms and
conditions of this Agreement, to make loans (each, a “Revolving Loan,”
and collectively, the “Revolving Loans”) to the Borrower, from time to
time on any Business Day during the period from and including the Closing Date
to but not including the Revolving Credit Termination Date, provided
that no Borrowing of Revolving Loans shall be made if, immediately after giving
effect thereto (and to any concurrent repayment of Swingline Loans with
proceeds of Revolving Loans made pursuant to such Borrowing), (y) the
Revolving Credit Exposure of any Revolving Credit Lender would exceed its
Revolving Credit Commitment at such time or (z) the Aggregate Revolving
Credit Exposure would exceed the aggregate Revolving Credit Commitments at such
time. Subject to and on the terms and conditions of this Agreement, the
Borrower may borrow, repay and reborrow Revolving Loans.

(d)           The Swingline Lender
agrees, subject to and on the terms and conditions of this Agreement, to make
loans (each, a “Swingline Loan,” and collectively, the “Swingline
Loans”) to the Borrower, from time to time on any Business Day during the
period from the Closing Date to but not including the Swingline Maturity Date
(or, if earlier, the Revolving Credit Termination Date), in an aggregate
principal amount at any time outstanding not exceeding the Swingline Commitment.
Swingline Loans may be made even if the aggregate principal amount of Swingline
Loans outstanding at any time, when added to the aggregate principal amount of
the Revolving Loans made by the Swingline Lender in its capacity as a Revolving
Credit Lender outstanding at such time and its Letter of Credit Exposure at
such time, would exceed the Swingline Lender’s own Revolving Credit Commitment
at such time, but provided that no Borrowing of Swingline Loans shall be
made if, immediately after giving effect thereto, (y) the Revolving Credit
Exposure of any Revolving Credit Lender would exceed its Revolving Credit
Commitment at such time or (z) the Aggregate Revolving Credit Exposure
would exceed the aggregate Revolving Credit Commitments at such time. Subject
to and on the terms and conditions of this Agreement, the Borrower may borrow,
repay (including by means of a Borrowing of Revolving Loans pursuant to Section 2.2(e)) and reborrow Swingline Loans.

(e)           Each Incremental
Term Lender with respect to a particular Series of Incremental Term Loans
severally agrees, subject to and on the terms and conditions of this Agreement
and the applicable Incremental Term Loan Amendment, to make an Incremental Term
Loan of such Series to the Borrower on the applicable Incremental Term
Loan Effective Date in a principal amount not to exceed its Incremental Term
Loan Commitment with respect to such Series. To the extent repaid, Incremental
Term Loans may not be reborrowed.

2.2           Borrowings.

(a)           The
Term Loans, Revolving Loans and each Series of Incremental Term Loans
(each, together with the Swingline Loans, a “Class” of Loan) shall, at
the option of the Borrower and subject to the terms and conditions of this
Agreement, be either Base Rate Loans or LIBOR 

 30
 

 

 

Loans (each, a “Type”
of Loan), provided that (i) all Loans comprising the same Borrowing
shall, unless otherwise specifically provided herein, be of the same Type, and (ii) no
LIBOR Loans (other than Term A Loans maintained as LIBOR Loans) may be borrowed
at any time prior to the third (3rd) Business Day after the Closing Date (or, with respect to any Incremental Term Loans, the third
(3rd) Business
Day after the applicable Incremental Term Loan Effective Date). The Swingline
Loans shall be made and maintained as Base Rate Loans at all times.

(b)           In
order to make a Borrowing (other than (x) Borrowings of Swingline Loans,
which shall be made pursuant to Section 2.2(d),
(y) Borrowings for the purpose of repaying Refunded Swingline Loans, which
shall be made pursuant to Section 2.2(e),
and (z) Borrowings involving continuations or conversions of outstanding
Loans, which shall be made pursuant to Section 2.11),
the Borrower will give the Administrative Agent written notice not later than
1:00 p.m., Charlotte, North Carolina time, three (3) Business Days
prior to each Borrowing to be comprised of LIBOR Loans and one (1) Business
Day prior to each Borrowing to be comprised of Base Rate Loans; provided,
however, that requests for the Borrowing of the Term A-1 Loans and
any Revolving Loans to be made on the Closing Date may, at the discretion of
the Administrative Agent, be given with less advance notice than as specified
hereinabove. Each such notice (each, a “Notice of Borrowing”) shall be
given in the form of Exhibit B-1
and shall specify (1) the aggregate principal amount, Class and
initial Type of the Loans to be made pursuant to such Borrowing, (2) in
the case of a Borrowing of LIBOR Loans, the initial Interest Period to be
applicable thereto, and (3) the requested Borrowing Date, which shall be a
Business Day. Once given, a Notice of Borrowing may not be revoked by the
Borrower except upon payment of any amounts required under Section 2.18
to be paid as a consequence of such revocation. Upon its receipt of a Notice of
Borrowing, the Administrative Agent will promptly notify each applicable Lender
of the proposed Borrowing by facsimile transmission. Notwithstanding anything
to the contrary contained herein:

(i)            the aggregate principal amount of
the Borrowing of Term A-1 Loans shall be in the amount of the aggregate
Term A-1 Loan Commitments, and the aggregate principal amount of any
Borrowing of any Series of Incremental Term Loans shall be in the amount
of the aggregate Incremental Term Loan Commitments applicable to such Series of
Incremental Term Loans;

(ii)           the aggregate
principal amount of each Borrowing comprised of Base Rate Loans shall not be
less than $500,000 or, if greater, an integral multiple of $100,000 in excess
thereof (or, in the case of a Borrowing of Revolving Loans, if less, in the
amount of the aggregate Unutilized Revolving Credit Commitments), and the
aggregate principal amount of each Borrowing comprised of LIBOR Loans shall not
be less than $1,000,000 or, if greater, an integral multiple of $500,000 in
excess thereof;

(iii)          if the Borrower
shall have failed to designate the Type of Loans comprising a Borrowing, the
Borrower shall be deemed to have requested a Borrowing comprised of Base Rate
Loans; and

(iv)          if the Borrower
shall have failed to select the duration of the Interest Period to be
applicable to any Borrowing of LIBOR Loans, then the Borrower shall be deemed
to have selected an Interest Period with a duration of one month.

 31

 

 

(c)           Not later than 2:00 p.m.,
Charlotte, North Carolina time, on the requested Borrowing Date (which shall be
the Closing Date, in the case of the Term A-1 Loans), each applicable
Lender will make available to the Administrative Agent at the Payment Office an
amount, in Dollars and in immediately available funds, equal to the amount of
the Loan or Loans to be made by such Lender. To the extent such Lenders have
made such amounts available to the Administrative Agent as provided
hereinabove, the Administrative Agent will make the aggregate of such amounts
available to the Borrower in accordance with Section 2.3(a) and in like funds as received by
the Administrative Agent.

(d)           In order to make a Borrowing of a
Swingline Loan (other than borrowings pursuant to any loan sweep product or
other cash management arrangement in effect between the Borrower and the
Swingline Lender, which shall be effected as provided thereunder), the Borrower
will give the Administrative Agent (and the Swingline Lender, if the Swingline
Lender is not also the Administrative Agent) written notice not later than 1:00 p.m.,
Charlotte, North Carolina time, on the Business Day of such Borrowing. Each
such notice (each, a “Notice of Swingline Borrowing”) shall be given in
the form of Exhibit B-2
and shall specify (i) the principal amount of the Swingline Loan to be
made pursuant to such Borrowing (which shall not be less than $200,000 and, if
greater, shall be in an integral multiple of $100,000 in excess thereof (or, if
less, in the amount of the Unutilized Swingline Commitment)) and (ii) the
requested Borrowing Date, which shall be a Business Day. Once given, a Notice
of Swingline Borrowing may not be revoked by the Borrower except upon payment
of any amounts required under Section 2.18
to be paid as a consequence of such revocation. Not later than 1:00 p.m.,
Charlotte, North Carolina time, on the requested Borrowing Date, the Swingline
Lender will make available to the Administrative Agent at the Payment Office an
amount, in Dollars and in immediately available funds, equal to the amount of
the requested Swingline Loan. To the extent the Swingline Lender has made such
amount available to the Administrative Agent as provided hereinabove, the
Administrative Agent will make such amount available to the Borrower in
accordance with Section 2.3(a) and in
like funds as received by the Administrative Agent.

(e)           With respect to any outstanding
Swingline Loans, the Swingline Lender may at any time (whether or not an Event
of Default has occurred and is continuing) in its sole and absolute discretion
(and shall, within seven (7) days after any Borrowing of Swingline Loans
causes the aggregate outstanding principal amount thereof to exceed
$2,000,000), and is hereby authorized and empowered by the Borrower to, cause a
Borrowing of Revolving Loans to be made for the purpose of repaying such
Swingline Loans by delivering to the Administrative Agent (if the
Administrative Agent is not also the Swingline Lender) and each other Revolving
Credit Lender (on behalf of, and with a copy to, the Borrower), not later than
11:00 a.m., Charlotte, North Carolina time, one (1) Business Day
prior to the proposed Borrowing Date therefor, a notice (which shall be deemed
to be a Notice of Borrowing given by the Borrower) requesting the Revolving
Credit Lenders to make Revolving Loans (which shall be made initially as Base
Rate Loans) on such Borrowing Date in an aggregate amount equal to the amount
of such Swingline Loans (the “Refunded Swingline Loans”) outstanding on
the date such notice is given that the Swingline Lender requests to be repaid. Not
later than 2:00 p.m., Charlotte, North Carolina time, on the requested
Borrowing Date, each Revolving Credit Lender (other than the Swingline Lender)
will make available to the Administrative Agent at the Payment Office an
amount, in Dollars and in immediately available funds, equal to the amount of
the Revolving 

 32
 

 

 

Loan to be made by such
Lender. To the extent the Revolving Credit Lenders have made such amounts
available to the Administrative Agent as provided hereinabove, the
Administrative Agent will make the aggregate of such amounts available to the
Swingline Lender in like funds as received by the Administrative Agent, which
shall apply such amounts in repayment of the Refunded Swingline Loans. Notwithstanding
any provision of this Agreement to the contrary, on the relevant Borrowing
Date, the Refunded Swingline Loans (including the Swingline Lender’s ratable
share thereof, in its capacity as a Revolving Credit Lender) shall be deemed to
be repaid with the proceeds of the Revolving Loans made as provided above
(including a Revolving Loan deemed to have been made by the Swingline Lender),
and such Refunded Swingline Loans deemed to be so repaid shall no longer be
outstanding as Swingline Loans but shall be outstanding as Revolving Loans. If
any portion of any such amount repaid (or deemed to be repaid) to the Swingline
Lender shall be recovered by or on behalf of the Borrower from the Swingline
Lender in any bankruptcy, insolvency or similar proceeding or otherwise, the
loss of the amount so recovered shall be shared ratably among all the Revolving
Credit Lenders in the manner contemplated by Section 2.15(b).

(f)            If, as a result of any bankruptcy,
insolvency or similar proceeding with respect to the Borrower, Revolving Loans
are not made pursuant to subsection (e) above in an amount sufficient
to repay any amounts owed to the Swingline Lender in respect of any outstanding
Swingline Loans, or if the Swingline Lender is otherwise precluded for any
reason from giving a notice on behalf of the Borrower as provided for
hereinabove, the Swingline Lender shall be deemed to have sold without
recourse, representation or warranty (except for the absence of Liens thereon
created, incurred or suffered to exist by, through or under the Swingline
Lender), and each Revolving Credit Lender shall be deemed to have purchased and
hereby agrees to purchase, a participation in such outstanding Swingline Loans
in an amount equal to its ratable share (based on the proportion that its
Revolving Credit Commitment bears to the aggregate Revolving Credit Commitments
at such time) of the unpaid amount thereof together with accrued interest
thereon. Upon one (1) Business Day’s prior notice from the Swingline
Lender, each Revolving Credit Lender (other than the Swingline Lender) will
make available to the Administrative Agent at the Payment Office an amount, in
Dollars and in immediately available funds, equal to its respective
participation. To the extent the Revolving Credit Lenders have made such
amounts available to the Administrative Agent as provided hereinabove, the
Administrative Agent will make the aggregate of such amounts available to the
Swingline Lender in like funds as received by the Administrative Agent. In the
event any such Revolving Credit Lender fails to make available to the
Administrative Agent the amount of such Lender’s participation as provided in
this Section 2.2(f),
the Swingline Lender shall be entitled to recover such amount on demand from such
Lender, together with interest thereon for each day from the date such amount
is required to be made available for the account of the Swingline Lender until
the date such amount is made available to the Swingline Lender at the Federal
Funds Rate for the first three (3) Business Days and thereafter at the
Adjusted Base Rate applicable to Revolving Loans. Promptly following its
receipt of any payment by or on behalf of the Borrower in respect of a
Swingline Loan, the Swingline Lender will pay to each Revolving Credit Lender
that has acquired a participation therein such Lender’s ratable share of such
payment.

(g)           Notwithstanding any provision of this
Agreement to the contrary, the obligation of each Revolving Credit Lender
(other than the Swingline Lender) to make Revolving Loans for the purpose of
repaying any Refunded Swingline Loans pursuant to Section 2.2(e) and each such 

 33
 

 

 

Lender’s obligation to
purchase a participation in any unpaid Swingline Loans pursuant to Section 2.2(f) shall be absolute
and unconditional and shall not be affected by any circumstance or event
whatsoever, including, without limitation, (i) any set-off,
counterclaim, recoupment, defense or other right that such Lender may have
against the Swingline Lender, the Administrative Agent, the Borrower or any
other Person for any reason whatsoever, (ii) the occurrence or continuance
of any Default or Event of Default, (iii) any adverse change in the
business, operations, properties, assets, condition (financial or otherwise) or
prospects of the Borrower or any of its Subsidiaries, or (iv) any
breach of this Agreement by any party hereto.

2.3           Disbursements; Funding Reliance;
Domicile of Loans.

(a)           The Borrower hereby authorizes the
Administrative Agent to disburse the proceeds of each Borrowing in accordance
with the terms of any written instructions from any of the Authorized Officers,
provided that the Administrative Agent shall not be obligated under any
circumstances to forward amounts to any account not listed in an Account
Designation Letter. The Borrower may at any time deliver to the Administrative
Agent an Account Designation Letter listing any additional accounts or deleting
any accounts listed in a previous Account Designation Letter.

(b)           Unless the Administrative Agent has
received, prior to 2:00 p.m., Charlotte, North Carolina time, on the
relevant Borrowing Date, written notice from a Lender that such Lender will not
make available to the Administrative Agent such Lender’s ratable portion, if
any, of the relevant Borrowing, the Administrative Agent may assume that such
Lender has made such portion available to the Administrative Agent in
immediately available funds on such Borrowing Date in accordance with the
applicable provisions of Section 2.2
or Section 3.5, and the Administrative
Agent may, in reliance upon such assumption, but shall not be obligated to,
make a corresponding amount available to the Borrower on such Borrowing Date. If
and to the extent that such Lender shall not have made such portion available
to the Administrative Agent, and the Administrative Agent shall have made such
corresponding amount available to the Borrower, such Lender, on the one hand,
and the Borrower, on the other, severally agree to pay to the Administrative
Agent forthwith on demand such corresponding amount, together with interest
thereon for each day from the date such amount is made available to the
Borrower until the date such amount is repaid to the Administrative Agent, (i) in
the case of such Lender, at the Federal Funds Rate, and (ii) in the case
of the Borrower (without duplication), at the rate of interest applicable at
such time to the Type and Class of Loans comprising such Borrowing, as
determined under the provisions of Section 2.8.
If such Lender shall repay to the Administrative Agent such corresponding
amount, such amount shall constitute such Lender’s Loan as part of such
Borrowing for purposes of this Agreement. The failure of any Lender to make any
Loan required to be made by it as part of any Borrowing shall not relieve any
other Lender of its obligation, if any, hereunder to make its Loan as part of
such Borrowing, but no Lender shall be responsible for the failure of any other
Lender to make the Loan to be made by such other Lender as part of any
Borrowing.

(c)           Each Lender may, at its option, make
and maintain any Loan at, to or for the account of any of its Lending Offices, provided
that any exercise of such option shall not affect the obligation of the
Borrower to repay such Loan to or for the account of such Lender in accordance
with the terms of this Agreement.

 34
 

 

 

2.4           Evidence of Debt; Notes.

(a)           Each Lender shall maintain in
accordance with its usual practice an account or accounts evidencing the
indebtedness of the Borrower to the applicable Lending Office of such Lender
resulting from each Loan made by such Lending Office of such Lender from time
to time, including the amounts of principal and interest payable and paid to
such Lending Office of such Lender from time to time under this Agreement.

(b)           The Administrative Agent shall
maintain the Register pursuant to Section 11.7(b),
and a subaccount for each Lender, in which Register and subaccounts (taken
together) shall be recorded (i) the amount of each such Loan, the Class and
Type of each such Loan and the Interest Period applicable thereto, (ii) the
amount of any principal or interest due and payable or to become due and
payable from the Borrower to each Lender hereunder in respect of each such Loan
and (iii) the amount of any sum received by the Administrative Agent
hereunder from the Borrower in respect of each such Loan and each Lender’s
share thereof.

(c)           The entries made in the Register and
subaccounts maintained pursuant to Section 2.4(b) (and,
if consistent with the entries in the accounts maintained pursuant to Section 2.4(a)) shall, to the extent permitted by
applicable law, be prima facie evidence of the existence and amounts of the
obligations of the Borrower therein recorded; provided, however,
that the failure of any Lender or the Administrative Agent to maintain any such
account, Register or subaccount, as applicable, or any error therein, shall not
in any manner affect the obligation of the Borrower to repay (with applicable
interest) the Loans made to the Borrower by such Lender in accordance with the
terms of this Agreement.

(d)           The Loans of each Class made or
converted by each Lender shall, if requested by the applicable Lender (which
request shall be made to the Administrative Agent), be evidenced (i) in
the case of Term A Loans, by a Term A Note appropriately completed in
substantially the form of Exhibit A-1,
(ii) in the case of Term A-1 Loans, by a Term A-1 Note
appropriately completed in substantially the form of Exhibit A-2, (iii) in the case of Revolving
Loans, by a Revolving Note appropriately completed in substantially the form of
Exhibit A-3, and (iv) in
the case of the Swingline Loans, by a Swingline Note appropriately completed in
substantially the form of Exhibit A-4,
in each case executed by the Borrower and payable to the order of such Lender. Each
Note shall be entitled to all of the benefits of this Agreement and the other
Credit Documents and shall be subject to the provisions hereof and thereof.

2.5           Termination and Reduction of
Commitments and Swingline Commitment.

(a)           The Term A-1 Loan Commitments
shall be automatically and permanently terminated with the making of the Term A-1
Loans on the Closing Date. The Revolving Credit Commitments shall be
automatically and permanently terminated on the Revolving Credit Termination
Date. The Swingline Commitment shall be automatically and permanently
terminated on the Swingline Maturity Date, unless sooner terminated pursuant to
any other provision of this Section 2.5
or Section 9.2. The Incremental Term
Loan Commitments relating to any Series of Incremental Term Loans shall be
automatically and permanently terminated with the making of such Series of
Incremental Term Loans.

 35
 

 

 

(b)           At any time and from time to time
after the date hereof, upon not less than three (3) Business Days’ prior
written notice to the Administrative Agent (and, in the case of a termination
or reduction of the Unutilized Swingline Commitment, the Swingline Lender), the
Borrower may terminate in whole or reduce in part the aggregate Unutilized
Revolving Credit Commitments (but not to an amount lower than the aggregate
principal amount of Swingline Loans outstanding at the time of reduction) or
the Unutilized Swingline Commitment, provided that any such partial
reduction shall be in an aggregate amount of not less than $1,000,000 ($200,000
in the case of the Unutilized Swingline Commitment) or, if greater, an integral
multiple of $500,000 in excess thereof ($100,000 in the case of the Unutilized
Swingline Commitment). The amount of any termination or reduction made under
this Section 2.5(b) may
not thereafter be reinstated.

(c)           Each reduction of the Revolving
Credit Commitments pursuant to this Section shall be applied ratably among
the Revolving Credit Lenders according to their respective Revolving Credit
Commitments. Notwithstanding any provision of this Agreement to the contrary,
any reduction of the Revolving Credit Commitments pursuant to this Section 2.5 that has the effect of reducing the
aggregate Revolving Credit Commitments to an amount less than the amount of the
Swingline Commitment at such time shall result in an automatic corresponding
reduction of the Swingline Commitment to the amount of the aggregate Revolving
Credit Commitments (as so reduced), without any further action on the part of
the Borrower or the Swingline Lender.

2.6           Mandatory Payments and Prepayments.

(a)           Except to the extent due or paid
sooner pursuant to the provisions of this Agreement, the Borrower will repay
the aggregate outstanding principal of the Term A Loans on the dates and in the
amounts set forth below:

	
  Date

  	
   

  	
  Payment Amount

  	
   

  
	
  June 30,
  2007

  	
   

  	
  $

  	
  1,750,000

  	
   

  
	
  September 30,
  2007

  	
   

  	
  $

  	
  1,750,000

  	
   

  
	
  December 31,
  2007

  	
   

  	
  $

  	
  1,750,000

  	
   

  
	
  March 31,
  2008

  	
   

  	
  $

  	
  2,187,500

  	
   

  
	
  June 30,
  2008

  	
   

  	
  $

  	
  2,187,500

  	
   

  
	
  September 30,
  2008

  	
   

  	
  $

  	
  2,187,500

  	
   

  
	
  December 31,
  2008

  	
   

  	
  $

  	
  2,187,500

  	
   

  
	
  March 31,
  2009

  	
   

  	
  $

  	
  2,625,000

  	
   

  
	
  June 30,
  2009

  	
   

  	
  $

  	
  2,625,000

  	
   

  
	
  September 30,
  2009

  	
   

  	
  $

  	
  2,625,000

  	
   

  
	
  Term Loan Maturity Date

  	
   

  	
  $

  	
  2,625,000

  	
   

  

 

(b)           Except to the extent due or paid
sooner pursuant to the provisions of this Agreement, the Borrower will repay
the aggregate outstanding principal of the Term A-1 Loans on the dates
and in the amounts set forth below:

 36
 

 

 

	
  Date

  	
   

  	
  Payment Amount

  	
   

  
	
  September 30,
  2006

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  December 31,
  2006

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  March 31,
  2007

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  June 30,
  2007

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  September 30,
  2007

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  December 31,
  2007

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  March 31,
  2008

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  June 30,
  2008

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  September 30,
  2008

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  December 31,
  2008

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  March 31,
  2009

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  June 30,
  2009

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  September 30,
  2009

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  December 31,
  2009

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  March 31,
  2010

  	
   

  	
  $

  	
  2,850,000

  	
   

  
	
  June 30,
  2010

  	
   

  	
  $

  	
  2,850,000

  	
   

  
	
  September 30,
  2010

  	
   

  	
  $

  	
  2,850,000

  	
   

  
	
  December 31,
  2010

  	
   

  	
  $

  	
  2,850,000

  	
   

  
	
  March 31,
  2011

  	
   

  	
  $

  	
  2,850,000

  	
   

  
	
  Term A-1 Loan
  Maturity Date

  	
   

  	
  $

  	
  24,350,000

  	
   

  

 

(c)           Except to the extent due or paid
sooner pursuant to the provisions of this Agreement, (i) the aggregate
outstanding principal of the Term A Loans shall be due and payable in full on
the Term A Loan Maturity Date, (ii) the aggregate outstanding principal of
the Term A-1 Loans shall be due and payable in full on the Term A-1
Loan Maturity Date, (iii) the aggregate outstanding principal of the
Revolving Loans shall be due and payable in full on the Revolving Credit
Maturity Date, and (iv) the aggregate outstanding principal of the
Swingline Loans shall be due and payable in full on the Swingline Maturity Date.
The Borrower shall repay the aggregate outstanding principal of each Series of
Incremental Term Loans on the dates and in the amounts set forth in the
applicable Incremental Term Loan Amendment.

(d)           In the event that, at any time, the
Aggregate Revolving Credit Exposure (excluding the aggregate amount of any
Swingline Loans to be repaid with proceeds of Revolving Loans made on the date
of determination) shall exceed the aggregate Revolving Credit Commitments at
such time (after giving effect to any concurrent termination or reduction
thereof), the Borrower will, within two (2) Business Days after such time,
prepay the outstanding principal amount of the Swingline Loans and, to the
extent of any excess remaining after prepayment in full of outstanding
Swingline Loans, the outstanding principal amount of the Revolving Loans in the
amount of such excess; provided that, to the extent such excess amount
is greater than the aggregate principal amount of Swingline Loans and Revolving
Loans outstanding immediately prior to the application of such prepayment, the
amount so prepaid shall be retained by the Administrative Agent and held in the
Cash Collateral Account as cover for 

 37
 

 

 

Letter of Credit
Exposure, as more particularly described in Section 3.8,
and thereupon such cash shall be deemed to reduce the aggregate Letter of
Credit Exposure by an equivalent amount.

(e)           Promptly upon (and in any event not
later than five (5) Business Days after) its receipt thereof, the Borrower
will prepay the outstanding principal amount of the Loans in an amount equal to
75% of
the Net Cash Proceeds from any Equity Issuance and 100% of the Net Cash
Proceeds from any Debt Issuance, and will deliver to the Administrative Agent,
concurrently with such prepayment, a certificate signed on behalf of the
Borrower by a Financial Officer of the Borrower in form reasonably satisfactory
to the Administrative Agent and setting forth the calculation of such Net Cash
Proceeds; provided, however, that in the event the Total Leverage
Ratio (calculated on a pro forma basis after giving effect to any Equity
Issuance) is equal to or less than 2.0 to 1.0, the Borrower shall not be
required to prepay the Loans in respect of any such Equity Issuance.

(f)            Not later than 270 days after its
receipt of any proceeds of insurance, condemnation award or other compensation
in respect of any Casualty Event in excess of (y) $500,000 for any single
Casualty Event or (z) $1,000,000 when aggregated with such proceeds for
all Casualty Events during any single fiscal year (or, in either case, if
earlier, upon its determination not to repair or replace any property subject
to such Casualty Event or to acquire assets used or useable in the business of
the Borrower or its Subsidiaries), the Borrower will prepay the outstanding
principal amount of the Loans in an amount equal to 100% of the Net Cash
Proceeds from such Casualty Event (less any amounts theretofore applied (or
contractually committed to be applied) to the repair or replacement of property
subject to such Casualty Event or to acquire assets used or useable in the
business of the Borrower or its Subsidiaries) and will deliver to the
Administrative Agent, concurrently with such prepayment, a certificate signed
on behalf of the Borrower by a Financial Officer of the Borrower in form
reasonably satisfactory to the Administrative Agent and setting forth the
calculation of such Net Cash Proceeds; provided, however, that,
notwithstanding the foregoing, (i) except as otherwise provided in this
Agreement (including in clause (ii) below) or in any other Credit
Document, the Administrative Agent shall promptly turn over to the Borrower any
such proceeds received during such 270-day period (unless the Borrower
has, prior to the Administrative Agent’s receipt of such proceeds, notified the
Administrative Agent of its determination not to repair or replace the property
subject to the applicable Casualty Event or to acquire assets used or useable
in the business of the Borrower or its Subsidiaries), but nothing in this Section 2.6(f) shall be deemed to limit or
otherwise affect any right of the Administrative Agent herein or in any of the
other Credit Documents to receive and hold such proceeds as loss payee and to
disburse the same to the Borrower upon the terms hereof or thereof, or any
obligation of the Borrower or any of its Subsidiaries herein or in any of the
other Credit Documents to remit any such proceeds to the Administrative Agent
upon its receipt thereof, and (ii) any and all such proceeds received or
held by the Administrative Agent or the Borrower or any of its Subsidiaries
during the continuance of an Event of Default (regardless of any proposed use
thereof for repair, replacement or reinvestment, but less any amounts
theretofore applied (or contractually committed to be applied) to the repair or
replacement of property subject to such Casualty Event) shall be applied to prepay
the outstanding principal amount of the Loans. Subject to the foregoing, any
proceeds of insurance, condemnation award or other compensation in respect of
any Casualty Event applied (or contractually committed to be applied) within
270 days to the repair or replacement of property subject to such Casualty
Event or to acquire assets used or useable in the business of the 

 38
 

 

 

Borrower or its
Subsidiaries in accordance with the provisions of this Section 2.6(f) shall not be
required to be applied by the Borrower as a prepayment of the outstanding
principal amount of the Loans.

(g)           Promptly upon (and in any event not
later than five (5) Business Days after) its receipt thereof, the Borrower
will prepay the outstanding principal amount of the Loans in an amount equal to
100% of the Net Cash Proceeds from any Asset Disposition and will deliver to
the Administrative Agent, concurrently with such prepayment, a certificate
signed on behalf of the Borrower by a Financial Officer of the Borrower in form
reasonably satisfactory to the Administrative Agent and setting forth the
calculation of such Net Cash Proceeds; provided, however, that
with respect to Asset Dispositions permitted under Section 8.4(v), the Borrower shall not be required to
apply such Net Cash Proceeds as a prepayment of the Loans as provided herein,
so long as (and to the extent that) such Net Cash Proceeds are applied towards
(or are contractually committed to be applied towards) assets used or useable
in the business of the Borrower or its Subsidiaries within 180 days after such
Asset Disposition; but provided  further that any such Net Cash
Proceeds not applied within 180 days (regardless of any contractual
commitments) to the replacement of property subject to such Asset Disposition
shall be applied by the Borrower as a prepayment of the outstanding principal
amount of the Loans no later than the fifth (5th) Business Day immediately following such
180-day period. Notwithstanding the foregoing, nothing in this Section 2.6(g) shall be deemed to permit any Asset
Disposition not expressly permitted under Section 8.4.

(h)           Each prepayment of the Loans made
pursuant to Sections 2.6(e) through
Section 2.6(g) shall be
applied (i) first, to reduce the outstanding principal amount of the Term
A Loans, the Term A-1 Loans and the Incremental Term Loans (if any)
(applied ratably to Term A Loans, Term A-1 Loans and each Series of
Incremental Term Loans based upon the respective aggregate outstanding
principal amount of each such Class of Loans at the time of such prepayment),
with such reduction to be applied (y) first, to the next four (4) scheduled
unpaid principal payments of the Term A Loans, Term A-1 Loans and each Series of
Incremental Term Loans (as set forth in subsections (a) and (b) above
or in the applicable Incremental Term Loan Amendment) (excluding any scheduled
principal payments due on the date of such prepayment), in the direct order of
maturity, and (z) second, to the extent of any excess remaining after
application as provided in clause (y) above, to the other remaining
scheduled principal payments of the Term A Loans, Term A-1 Loans and
Incremental Term Loans (as set forth in subsections (a) and (b) above
or in the applicable Incremental Term Loan Amendment), in the inverse order of
maturity, (ii) second, to the extent of any excess remaining after
application as provided in clause (i) above, to reduce the
outstanding principal amount of the Swingline Loans (but without any
corresponding permanent reduction of the Swingline Commitment or the Revolving Credit
Commitments), (iii) third, to the extent of any excess remaining after
application as provided in clauses (i) and (ii) above, to reduce
the outstanding principal amount of the Revolving Loans (but without any
corresponding permanent reduction of the Revolving Credit Commitments), and (iv) fourth,
to the extent of any excess remaining after application as provided in
clauses (i), (ii) and (iii) above, to pay any outstanding
Reimbursement Obligations, and within each Class of Loans shall be applied
first to prepay all Base Rate Loans before any LIBOR Loans are prepaid; provided
that such prepayments shall be applied against LIBOR Loans in such a manner as
to minimize any amounts required to be paid under Section 2.18
as a consequence thereof. Each payment or prepayment pursuant to the provisions
of this Section 2.6 shall be applied
ratably 

 39
 

 

 

among the Lenders holding
the Loans being prepaid, in proportion to the principal amount held by each. Swingline
Loans and Revolving Loans (but not Term Loans) prepaid pursuant to this Section 2.6(h) may be reborrowed,
subject to the terms and conditions of this Agreement.

(i)            Each payment or prepayment of a
LIBOR Loan made pursuant to the provisions of this Section on a day other
than the last day of the Interest Period applicable thereto shall be made
together with all amounts required under Section 2.18 to be paid as a consequence thereof.

(j)            In the event the Administrative
Agent receives a notice of prepayment with respect to Sections 2.6(e) through 2.6(g), the Administrative Agent will give
prompt notice thereof to the Lenders; provided that if such notice has
also been furnished to the Lenders, the Administrative Agent shall have no
obligation to notify the Lenders with respect thereto. Upon request by any
Lender, the Administrative Agent will forward to such Lender a copy of the
certificate of the Borrower with respect to any such prepayment.

2.7           Voluntary Prepayments.

(a)           At any time and from time to time,
the Borrower shall have the right to prepay the Loans, in whole or in part,
without premium or penalty (except as provided in clause (iii) below),
upon written notice given to the Administrative Agent not later than 1:00 p.m.,
Charlotte, North Carolina time, three (3) Business Days prior to each
intended prepayment of LIBOR Loans and one (1) Business Day prior to each
intended prepayment of Base Rate Loans (other than Swingline Loans, which may
be prepaid on a same-day basis), provided that (i) each partial
prepayment of LIBOR Loans shall be in an aggregate principal amount of not less
than $1,000,000 or, if greater, an integral multiple of $500,000 in excess
thereof, and each partial prepayment of Base Rate Loans shall be in an
aggregate principal amount of not less than $500,000 or, if greater, an
integral multiple of $100,000 in excess thereof ($200,000 and $100,000,
respectively, in the case of Swingline Loans), (ii) no partial prepayment
of LIBOR Loans made pursuant to any single Borrowing shall reduce the aggregate
outstanding principal amount of the remaining LIBOR Loans under such Borrowing
to less than $1,000,000 or to any greater amount not an integral multiple of
$500,000 in excess thereof, and (iii) unless made together with all
amounts required under Section 2.18
to be paid as a consequence of such prepayment, a prepayment of a LIBOR Loan
may be made only on the last day of the Interest Period applicable thereto. Each
such notice shall specify the proposed date of such prepayment and the
aggregate principal amount, Class and Type of the Loans to be prepaid
(and, in the case of LIBOR Loans, the Interest Period of the Borrowing pursuant
to which made), and shall be irrevocable and shall bind the Borrower to make
such prepayment on the terms specified therein. Revolving Loans and Swingline
Loans (but not Term Loans) prepaid pursuant to this Section 2.7(a) may
be reborrowed, subject to the terms and conditions of this Agreement. In the
event the Administrative Agent receives a notice of prepayment under this
Section, the Administrative Agent will give prompt notice thereof to the
Lenders; provided that if such notice has also been furnished to the
Lenders, the Administrative Agent shall have no obligation to notify the
Lenders with respect thereto.

(b)           Each prepayment of the Term Loans
made pursuant to Section 2.7(a) shall
be applied to reduce the outstanding principal amount of the Term A Loans, the
Term A-1 Loans and each Series of Incremental Term Loans (applied
ratably to Term A Loans, Term A-1 Loans 

 40
 

 

 

and each Series of
Incremental Term Loans based upon the respective aggregate outstanding
principal amount of each such Class of Loans at the time of such
prepayment), with such reduction to be applied (y) first, to the next four
(4) scheduled unpaid principal payments of the Term A Loans, the Term A-1
Loans and each Series of Incremental Term Loans (as set forth in Sections 2.6(a) and 2.6(b) or
in the applicable Incremental Term Loan Amendment) (excluding any
scheduled principal payment due on the date of such prepayment), in the direct
order of maturity, and (z) second, to the extent of any excess remaining
after application as provided in clause (y) above, to the other
remaining scheduled principal payments of the Term A Loans, Term A-1
Loans and Incremental Term Loans (as set forth in Sections 2.6(a) and 2.6(b) or in
the applicable Incremental Term Loan Amendment), in the inverse order of
maturity (provided that, upon the written election of the Borrower, such
prepayment of Term Loans may be applied only to the Term A-1 Loans and
each Series of Incremental Term Loans (applied ratably to Term A-1
Loans and each Series of Incremental Term Loans based upon the respective
aggregate outstanding principal amount of each such Class of Loans at the
time of such prepayment), with such reduction to be applied to the remaining
scheduled principal payments of the Term A-1 Loans and Incremental Term
Loans in the inverse order of maturity). Each prepayment of the Loans made
pursuant to Section 2.7(a) shall
be applied ratably among the Lenders holding the Loans being prepaid, in
proportion to the principal amount held by each.

2.8           Interest.

(a)           The Borrower will pay interest in
respect of the unpaid principal amount of each Loan, from the date of Borrowing
thereof until such principal amount shall be paid in full, (i) at the
Adjusted Base Rate, as in effect from time to time during such periods as such
Loan is a Base Rate Loan, and (ii) at the Adjusted LIBOR Rate, as in
effect from time to time during such periods as such Loan is a LIBOR Loan. The
Borrower will pay interest in respect of the unpaid principal amount of each
Incremental Term Loan, from the date of Borrowing thereof until such principal
amount shall be paid in full, at the rate or rates specified in the applicable
Incremental Term Loan Amendments.

(b)           Upon the occurrence and during the
continuance of any default by the Borrower in the payment of any principal of
or interest on any Loan, any fees or other amount hereunder when due (whether
at maturity, pursuant to acceleration or otherwise), all outstanding principal
amounts of the Loans and, to the greatest extent permitted by law, all interest
accrued on the Loans and all other accrued and payable fees and other amounts
hereunder, shall bear interest at a rate per annum equal to the interest rate
applicable from time to time thereafter to such Loans (whether the Adjusted
Base Rate or the Adjusted LIBOR Rate) plus 2% (or, in the case of interest,
fees and other amounts for which no rate is provided hereunder, at the Adjusted
Base Rate applicable to Revolving Loans plus 2%), and, in each case, such
default interest shall be payable on demand. To the greatest extent permitted
by law, interest shall continue to accrue after the filing by or against the
Borrower of any petition seeking any relief in bankruptcy or under any law
pertaining to insolvency or debtor relief.

(c)           Accrued (and theretofore unpaid)
interest shall be payable as follows:

(i)            in
respect of each Base Rate Loan (including any Base Rate Loan or portion thereof
paid or prepaid pursuant to the provisions of Section 2.6, except as 

 41

 

provided hereinbelow), in arrears on the last Business Day of each
calendar quarter, beginning with the first such day to occur after the Closing
Date; provided, that in the event the Loans are repaid or prepaid in
full and the Commitments have been terminated, then accrued interest in respect
of all Base Rate Loans shall be payable together with such repayment or
prepayment on the date thereof;

(ii)           in respect of each
LIBOR Loan (including any LIBOR Loan or portion thereof paid or prepaid
pursuant to the provisions of Section 2.6,
except as provided hereinbelow), in arrears (y) on the last Business Day
of the Interest Period applicable thereto (subject to the provisions of Section 2.10(iv)) and (z) in addition, in the case
of a LIBOR Loan with an Interest Period having a duration of six months or
longer, on each date on which interest would have been payable under clause (y) above
had successive Interest Periods of three months’ duration been applicable to
such LIBOR Loan; provided, that in the event all LIBOR Loans made
pursuant to a single Borrowing are repaid or prepaid in full, then accrued
interest in respect of such LIBOR Loans shall be payable together with such
repayment or prepayment on the date thereof; and

(iii)          in respect of any
Loan, at maturity (whether pursuant to acceleration or otherwise) and, after
maturity, on demand.

(d)           Nothing
contained in this Agreement or in any other Credit Document shall be deemed to
establish or require the payment of interest to any Lender at a rate in excess
of the maximum rate permitted by applicable law. If the amount of interest
payable for the account of any Lender on any interest payment date would exceed
the maximum amount permitted by applicable law to be charged by such Lender,
the amount of interest payable for its account on such interest payment date
shall be automatically reduced to such maximum permissible amount. In the event
of any such reduction affecting any Lender, if from time to time thereafter the
amount of interest payable for the account of such Lender on any interest
payment date would be less than the maximum amount permitted by applicable law
to be charged by such Lender, then the amount of interest payable for its
account on such subsequent interest payment date shall be automatically increased
to such maximum permissible amount, provided that at no time shall the
aggregate amount by which interest paid for the account of any Lender has been
increased pursuant to this sentence exceed the aggregate amount by which
interest paid for its account has theretofore been reduced pursuant to the
previous sentence.

(e)           The
Administrative Agent shall promptly notify the Borrower and the Lenders upon
determining the interest rate for each Borrowing of LIBOR Loans after its
receipt of the relevant Notice of Borrowing or Notice of
Conversion/Continuation, and upon each change in the Base Rate; provided,
however, that the failure of the Administrative Agent to provide the
Borrower or the Lenders with any such notice shall neither affect any
obligations of the Borrower or the Lenders hereunder nor result in any
liability on the part of the Administrative Agent to the Borrower or any Lender.
Each such determination (including each determination of the Reserve
Requirement) shall, absent manifest error, be conclusive and binding on all
parties hereto.

2.9           Fees.
The Borrower agrees to pay:

 42
 

 

 

(a)           To
the Arranger, for its own account, on the Closing Date, the fees required under
the Engagement Letter to be paid to it on the Closing Date, in the amounts due
and payable on the Closing Date as required by the terms thereof;

(b)           To
the Administrative Agent, for the account of each Revolving Credit Lender
(other than a Defaulting Lender), a commitment fee for each calendar quarter
(or portion thereof) for the period from the date of this Agreement to the
Revolving Credit Termination Date, at a per annum rate equal to the Applicable
Percentage in effect for such fee from time to time during such quarter, on
such Lender’s ratable share (based on the proportion that its Revolving Credit
Commitment bears to the aggregate Revolving Credit Commitments) of the average
daily aggregate Unutilized Revolving Credit Commitments, payable in arrears (i) on
the last Business Day of each calendar quarter, beginning with the first such
day to occur after the Closing Date, and (ii) on the Revolving Credit
Termination Date;

(c)           To
the Administrative Agent, for the account of each Revolving Credit Lender
(other than a Defaulting Lender), a letter of credit fee for each calendar
quarter (or portion thereof) in respect of all Letters of Credit outstanding
during such quarter, at a per annum rate equal to the Applicable Percentage in
effect from time to time during such quarter for Revolving Loans that are
maintained as LIBOR Loans, on such Lender’s ratable share (based on the
proportion that its Revolving Credit Commitment bears to the aggregate
Revolving Credit Commitments) of the daily average aggregate Stated Amount of
such Letters of Credit, payable in arrears (i) on the last Business Day of
each calendar quarter, beginning with the first such day to occur after the
Closing Date, and (ii) on the later of the Revolving Credit Termination
Date and the date of termination of the last outstanding Letter of Credit;

(d)           To
the Issuing Lender, for its own account, a facing fee for each calendar quarter
(or portion thereof) in respect of all Letters of Credit outstanding during
such quarter, at a per annum rate of 0.25% on the daily average aggregate
Stated Amount of such Letters of Credit, payable in arrears (i) on the
last Business Day of each calendar quarter, beginning with the first such day
to occur after the Closing Date, and (ii) on the later of the Revolving
Credit Termination Date and the date of termination of the last outstanding
Letter of Credit;

(e)           To
the Issuing Lender, for its own account, such commissions, transfer fees and
other fees and charges incurred in connection with the issuance and
administration of each Letter of Credit as are customarily and reasonably
charged from time to time by the Issuing Lender for the performance of such
services in connection with similar letters of credit, or as may be otherwise
agreed to by the Issuing Lender, but without duplication of amounts payable
under Section 2.9(d);
and

(f)            To
the Administrative Agent, for its own account, the annual administrative fee
described in the Fee Letter, on the terms, in the amount and at the times set
forth therein.

2.10         Interest
Periods. Concurrently with the giving of a Notice of Borrowing or Notice of
Conversion/Continuation in respect of any Borrowing (whether in respect of Term
Loans or Revolving Loans) comprised of Base Rate Loans to be converted into, or
LIBOR Loans to be continued as, LIBOR Loans, the Borrower shall have the right
to elect, pursuant to such notice, the interest period (each, an “Interest
Period”) to be applicable to such LIBOR Loans, which 

 43
 

 

 

Interest Period shall, at the option of the Borrower, be a one, two,
three, six or (if agreed to by all of the Lenders) nine-month period; provided,
however, that:

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

(ii)           the initial
Interest Period for any LIBOR Loan shall commence on the date of the Borrowing
of such LIBOR Loan (including the date of any continuation of, or conversion
into, such LIBOR Loan), and each successive Interest Period applicable to such
LIBOR Loan shall commence on the day on which the next preceding Interest
Period applicable thereto expires;

(iii)          LIBOR Loans may not
be outstanding under more than eight (8) separate Interest Periods at any
one time (for which purpose Interest Periods shall be deemed to be separate
even if they are coterminous);

(iv)          if any Interest
Period otherwise would expire on a day that is not a Business Day, such Interest
Period shall expire on the next succeeding Business Day unless such next
succeeding Business Day falls in another calendar month, in which case such
Interest Period shall expire on the next preceding Business Day;

(v)           no Interest Period
may be selected with respect to the Term A Loans that would end after a
scheduled date for repayment of principal of the Term A Loans occurring on or
after the first day of such Interest Period unless, immediately after giving
effect to such selection, the aggregate principal amount of Term A Loans that
are Base Rate Loans or that have Interest Periods expiring on or before such
principal repayment date equals or exceeds the principal amount required to be
paid on such principal repayment date;

(vi)          no Interest Period
may be selected with respect to the Term A-1 Loans that would end after a
scheduled date for repayment of principal of the Term A-1 Loans occurring
on or after the first day of such Interest Period unless, immediately after
giving effect to such selection, the aggregate principal amount of Term A-1
Loans that are Base Rate Loans or that have Interest Periods expiring on or
before such principal repayment date equals or exceeds the principal amount
required to be paid on such principal repayment date;

(vii)         the Borrower may not
select any Interest Period that expires (w) after the Term A Loan Maturity
Date, with respect to Term A Loans that are to be maintained as LIBOR Loans, (x) after
the Term A-1 Loan Maturity Date, with respect to Term A-1 Loans
that are to be maintained as LIBOR Loans, (y) after the applicable
Incremental Term Loan Maturity Date for any Series of Incremental Term
Loans, with respect to Incremental Term Loans of such Series that are to
be maintained as LIBOR Loans, or (z) after the Revolving Credit Maturity
Date, with respect to Revolving Loans that are to be maintained as LIBOR Loans;

(viii)        if any Interest
Period begins on a day for which there is no numerically corresponding day in
the calendar month during which such Interest Period would 

 44
 

 

 

otherwise
expire, such Interest Period shall expire on the last Business Day of such
calendar month; and

(ix)           the Borrower may
not select any Interest Period (and consequently, no LIBOR Loans shall be made)
if a Default or Event of Default shall have occurred and be continuing at the
time of such Notice of Borrowing or Notice of Conversion/Continuation with
respect to any Borrowing.

2.11         Conversions
and Continuations.

(a)           The
Borrower shall have the right, on any Business Day occurring on or after the
Closing Date, to elect (i) to convert all or a portion of the outstanding
principal amount of any Base Rate Loans of any Class into LIBOR Loans of
the same Class, or to convert any LIBOR Loans of any Class the Interest
Periods for which end on the same day into Base Rate Loans of the same Class,
or (ii) upon the expiration of any Interest Period, to continue all or a
portion of the outstanding principal amount of any LIBOR Loans of any Class the
Interest Periods for which end on the same day for an additional Interest
Period, provided that (w) any such conversion of LIBOR Loans into
Base Rate Loans shall involve an aggregate principal amount of not less than
$500,000 or, if greater, an integral multiple of $100,000 in excess thereof;
any such conversion of Base Rate Loans into, or continuation of, LIBOR Loans
shall involve an aggregate principal amount of not less than $1,000,000 or, if
greater, an integral multiple of $500,000 in excess thereof; and no partial
conversion of LIBOR Loans made pursuant to a single Borrowing shall reduce the
outstanding principal amount of such LIBOR Loans to less than $1,000,000 or to
any greater amount not an integral multiple of $500,000 in excess thereof, (x) except
as otherwise provided in Section 2.16(d),
LIBOR Loans may be converted into Base Rate Loans only on the last day of the
Interest Period applicable thereto (and, in any event, if a LIBOR Loan is
converted into a Base Rate Loan on any day other than the last day of the
Interest Period applicable thereto, the Borrower will pay, upon such
conversion, all amounts required under Section 2.18
to be paid as a consequence thereof), (y) no such conversion or
continuation shall be permitted with regard to any Base Rate Loans that are
Swingline Loans, and (z) no conversion of Base Rate Loans into LIBOR Loans
or continuation of LIBOR Loans shall be permitted during the continuance of a
Default or Event of Default.

(b)           The
Borrower shall make each such election by giving the Administrative Agent
written notice not later than 1:00 p.m., Charlotte, North Carolina time,
three (3) Business Days prior to the intended effective date of any
conversion of Base Rate Loans into, or continuation of, LIBOR Loans and one (1) Business
Day prior to the intended effective date of any conversion of LIBOR Loans into
Base Rate Loans. Each such notice (each, a “Notice of
Conversion/Continuation”) shall be given in the form of Exhibit B-3 and shall specify (x) the date
of such conversion or continuation (which shall be a Business Day), (y) in
the case of a conversion into, or a continuation of, LIBOR Loans, the Interest
Period to be applicable thereto, and (z) the aggregate amount, Class and
Type of the Loans being converted or continued. Once given, a Notice of
Conversion/Continuation may not be revoked by the Borrower except upon payment
of any amounts required under Section 2.18
to be paid as a consequence of such revocation. Upon the receipt of a Notice of
Conversion/Continuation, the Administrative Agent will promptly notify each
applicable Lender of the proposed conversion or continuation by facsimile
transmission. In the event that the Borrower shall fail to deliver a Notice of 

 45
 

 

 

Conversion/Continuation as provided herein with respect to any
outstanding LIBOR Loans, such LIBOR Loans shall automatically be converted to
Base Rate Loans upon the expiration of the then current Interest Period
applicable thereto (unless repaid pursuant to the terms hereof). In the event
the Borrower shall have failed to select in a Notice of Conversion/Continuation
the duration of the Interest Period to be applicable to any conversion into, or
continuation of, LIBOR Loans, then the Borrower shall be deemed to have
selected an Interest Period with a duration of one month.

2.12         Method
of Payments; Computations.

(a)           All
payments by the Borrower hereunder shall be made without setoff, counterclaim
or other defense, in Dollars and in immediately available funds to the
Administrative Agent, for the account of the Lenders entitled to such payment
or the Swingline Lender, as the case may be (except as otherwise expressly
provided herein as to payments required to be made directly to the Issuing
Lender or the Lenders) at the Payment Office prior to 1:00 p.m.,
Charlotte, North Carolina time, on the date payment is due. Any payment made as
required hereinabove, but after 1:00 p.m., Charlotte, North Carolina time,
shall be deemed to have been made on the next succeeding Business Day. If any
payment falls due on a day that is not a Business Day, then such due date shall
be extended to the next succeeding Business Day (except that in the case of
LIBOR Loans to which the provisions of Section 2.10(iv) are applicable, such due date
shall be the next preceding Business Day), and such extension of time shall
then be included in the computation of payment of interest, fees or other
applicable amounts.

(b)           The
Administrative Agent will distribute to the Lenders like amounts relating to
payments made to the Administrative Agent for the account of the Lenders as
follows:  (i) if the payment is received
by 1:00 p.m., Charlotte, North Carolina time, in immediately available
funds, the Administrative Agent will make available to each relevant Lender on
the same date, by wire transfer of immediately available funds, such Lender’s
ratable share of such payment (based on the percentage that the amount of the
relevant payment owing to such Lender bears to the total amount of such payment
owing to all of the relevant Lenders), and (ii) if such payment is
received after 1:00 p.m., Charlotte, North Carolina time, or in other than
immediately available funds, the Administrative Agent will make available to
each such Lender its ratable share of such payment by wire transfer of
immediately available funds on the next succeeding Business Day (or in the case
of uncollected funds, as soon as practicable after collected). If the
Administrative Agent shall not have made a required distribution to the
appropriate Lenders as required hereinabove after receiving a payment for the
account of such Lenders, the Administrative Agent will pay to each such Lender,
on demand, its ratable share of such payment with interest thereon at the
Federal Funds Rate for each day from the date such amount was required to be
disbursed by the Administrative Agent until the date repaid to such Lender. The
Administrative Agent will distribute to the Issuing Lender like amounts
relating to payments made to the Administrative Agent for the account of the
Issuing Lender in the same manner, and subject to the same terms and
conditions, as set forth hereinabove with respect to distributions of amounts
to the Lenders.

(c)           Unless
the Administrative Agent shall have received written notice from the Borrower
prior to the date on which any payment is due to any Lender hereunder that such
payment will not be made in full, the Administrative Agent may assume that the
Borrower has 

 46
 

 

 

made such payment in full to the Administrative Agent on such date, and
the Administrative Agent may, in reliance on such assumption, but shall not be
obligated to, cause to be distributed to such Lender on such due date an amount
equal to the amount then due to such Lender. If and to the extent the Borrower
shall not have so made such payment in full to the Administrative Agent, and
without limiting the obligation of the Borrower to make such payment in
accordance with the terms hereof, such Lender shall repay to the Administrative
Agent forthwith on demand such amount so distributed to such Lender, together
with interest thereon for each day from the date such amount is so distributed
to such Lender until the date repaid to the Administrative Agent, at the
Federal Funds Rate.

(d)           All
computations of interest and fees hereunder (including computations of the
Reserve Requirement) shall be made on the basis of a year consisting of (i) in
the case of interest on Base Rate Loans, 365/366 days, as the case may be, or (ii) in
all other instances, 360 days; and in each case under (i) and (ii) above,
with regard to the actual number of days (including the first day, but
excluding the last day) elapsed.

2.13         Recovery
of Payments.

(a)           The
Borrower agrees that to the extent the Borrower makes a payment or payments to
or for the account of the Administrative Agent, the Swingline Lender, any
Lender or the Issuing Lender, which payment or payments or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside
or required to be repaid to a trustee, receiver or any other party under any
bankruptcy, insolvency or similar state or federal law, common law or equitable
cause (whether as a result of any demand, settlement, litigation or otherwise),
then, to the extent of such payment or repayment, the Obligation intended to be
satisfied shall be revived and continued in full force and effect as if such
payment had not been received.

(b)           If
any amounts distributed by the Administrative Agent to any Lender are
subsequently returned or repaid by the Administrative Agent to the Borrower,
its representative or successor in interest or any other Person, whether by
court order or by settlement approved by the Lender in question or pursuant to
applicable Requirements of Law, such Lender will, promptly upon receipt of
notice thereof from the Administrative Agent, pay the Administrative Agent such
amount. If any such amounts are recovered by the Administrative Agent from the
Borrower, its representative or successor or any other Person in interest, the
Administrative Agent will redistribute such amounts to the Lenders on the same
basis as such amounts were originally distributed.

2.14         Use
of Proceeds. The proceeds of the Term A-1 Loans shall be used to
repay the revolving loans under the Existing Credit Agreement in full, and to
pay or reimburse permitted fees and expenses in connection with the
Transactions. The proceeds of the Revolving Loans and any Incremental Term
Loans, together with the proceeds of the Term A-1 Loan in excess of the
amounts used in accordance with the preceding sentence, shall be used to
provide for working capital and general corporate purposes and in accordance
with the terms and provisions of this Agreement (including, without limitation,
to finance Capital Expenditures and Permitted Acquisitions in accordance with
the terms and provisions of this Agreement).

 47
 

 

 

2.15         Pro
Rata Treatment.

(a)           Except
in the case of Swingline Loans, all fundings, continuations and conversions of
Loans of any Class shall be made by the Lenders pro rata on the basis of
their respective Commitments to provide Loans of such Class (in the case
of the funding of Loans of such Class pursuant to Section 2.2) or on the basis of their respective
outstanding Loans of such Class (in the case of continuations and
conversions of Loans of such Class pursuant to Section 2.11,
and additionally in all cases in the event the Commitments for Loans of such Class have
expired or have been terminated), as the case may be from time to time. All
payments on account of principal of or interest on any Loans, fees or any other
Obligations owing to or for the account of any one or more Lenders shall be
apportioned ratably among such Lenders in proportion to the amounts of such
principal, interest, fees or other Obligations owed to them respectively.

(b)           Each
Lender agrees that if it shall receive any amount hereunder (whether by
voluntary payment, realization upon security, exercise of the right of setoff
or banker’s lien, counterclaim or cross action, or otherwise, other than
pursuant to Section 2.16(a),
2.16(b), 2.16(d), 2.17, or 11.7)
applicable to the payment of any of the Obligations that exceeds its ratable
share (according to the proportion of (i) the amount of such Obligations
due and payable to such Lender at such time to (ii) the aggregate amount
of such Obligations due and payable to all Lenders at such time) of payments on
account of such Obligations then or therewith obtained by all the Lenders to
which such payments are required to have been made, such Lender shall forthwith
purchase from the other Lenders such participations in such Obligations as
shall be necessary to cause such purchasing Lender to share the excess payment
or other recovery ratably with each of them; provided, however,
that if all or any portion of such excess payment is thereafter recovered from
such purchasing Lender (whether as a result of any demand, settlement,
litigation or otherwise), such purchase from each such other Lender shall be
rescinded and each such other Lender shall repay to the purchasing Lender the
purchase price to the extent of such recovery, together with an amount equal to
such other Lender’s ratable share (according to the proportion of (i) the
amount of such other Lender’s required repayment to (ii) the total amount
so recovered from the purchasing Lender) of any interest or other amount paid
or payable by the purchasing Lender in respect of the total amount so recovered.
The Borrower agrees that any Lender so purchasing a participation from another
Lender pursuant to the provisions of this Section 2.15(b) may,
to the fullest extent permitted by law, exercise any and all rights of payment
(including, without limitation, setoff, banker’s lien or counterclaim) with
respect to such participation as fully as if such participant were a direct
creditor of the Borrower in the amount of such participation. If under any
applicable bankruptcy, insolvency or similar law, any Lender receives a secured
claim in lieu of a setoff to which this Section 2.15(b) applies,
such Lender shall, to the extent practicable, exercise its rights in respect of
such secured claim in a manner consistent with the rights of the Lenders entitled
under this Section 2.15(b) to share
in the benefits of any recovery on such secured claim.

2.16         Increased
Costs; Change in Circumstances; Illegality; etc.

(a)           If
the introduction of or any change in any applicable law, rule or
regulation or in the interpretation or administration thereof by any
Governmental Authority charged with the interpretation or administration
thereof, in each case after the date hereof, or compliance by any 

 48
 

 

 

Lender with any guideline or request from any such Governmental Authority
(whether or not having the force of law) given or made after the date hereof,
shall (i) subject such Lender to any tax or other charge, or change the
basis of taxation of payments to such Lender, in respect of any of its LIBOR
Loans or any other amounts payable hereunder or its obligation to make, fund or
maintain any LIBOR Loans (other than any change in the rate or basis of tax on
the overall net income or profits of such Lender or its applicable Lending
Office or franchise taxes imposed in lieu thereof), (ii) impose, modify or
deem applicable any reserve, special deposit or similar requirement (but
excluding any reserves to the extent actually included within the Reserve
Requirement in the calculation of the LIBOR Rate) against assets of, deposits
with or for the account of, or credit extended by, such Lender or its
applicable Lending Office, or (iii) impose on such Lender or its
applicable Lending Office any other condition, and the result of any of the
foregoing shall be to increase the cost to such Lender of making or maintaining
any LIBOR Loans or issuing or participating in Letters of Credit or to reduce
the amount of any sum received or receivable by such Lender hereunder
(including in respect of Letters of Credit), the Borrower will, promptly upon
(and in any event within fifteen (15) Business Days after) demand therefor by
such Lender and delivery by such Lender of the certificate required by Section 2.16(e), pay to such Lender such additional
amounts as shall compensate such Lender for such increase in costs or reduction
in return occurring.

(b)           If
any Lender shall have reasonably determined that the introduction of or any
change in any applicable law, rule or regulation regarding capital
adequacy or in the interpretation or administration thereof by any Governmental
Authority charged with the interpretation or administration thereof, in each
case after the date hereof, or compliance by such Lender with any guideline or
request from any such Governmental Authority (whether or not having the force of
law) given or made after the date hereof, has or would have the effect, as a
consequence of such Lender’s Commitment, Loans or issuance of or participations
in Letters of Credit hereunder, of reducing the rate of return on the capital
of such Lender or any Person controlling such Lender to a level below that
which such Lender or controlling Person could have achieved but for such
introduction, change or compliance (taking into account such Lender’s or
controlling Person’s policies with respect to capital adequacy), the Borrower
will, promptly upon (and in any event within fifteen (15) Business Days after)
demand therefor by such Lender and delivery by such Lender of the certificate
required by Section 2.16(e),
pay to such Lender such additional amounts as will compensate such Lender or
controlling Person for such reduction in return occurring.

(c)           If,
on or prior to the first day of any Interest Period, (y) the
Administrative Agent shall have determined that adequate and reasonable means
do not exist for ascertaining the applicable LIBOR Rate for such Interest
Period or (z) the Administrative Agent shall have received written notice
from the Required Lenders of their determination that the rate of interest
referred to in the definition of “LIBOR Rate” upon the basis of which the
Adjusted LIBOR Rate for LIBOR Loans for such Interest Period is to be
determined will not adequately and fairly reflect the cost to such Lenders of
making or maintaining LIBOR Loans during such Interest Period, the
Administrative Agent will forthwith so notify the Borrower and the Lenders. Upon
such notice, (i) all then outstanding LIBOR Loans shall automatically, on
the expiration date of the respective Interest Periods applicable thereto
(unless then repaid in full), be converted into Base Rate Loans, (ii) the
obligation of the Lenders to make, to convert Base Rate Loans into, or to
continue, LIBOR Loans shall be suspended (including pursuant to the Borrowing
to which 

 49
 

 

 

such Interest Period applies), and (iii) any Notice of Borrowing
or Notice of Conversion/Continuation given at any time thereafter with respect
to LIBOR Loans shall be deemed to be a request for Base Rate Loans, in each
case until the Administrative Agent or the Required Lenders, as the case may
be, shall have determined that the circumstances giving rise to such suspension
no longer exist (and the Required Lenders, if making such determination, shall
have so notified the Administrative Agent), and the Administrative Agent shall
have so notified the Borrower and the Lenders. The Administrative Agent will
notify the Borrower promptly upon the termination of any such suspension; provided,
however, that the failure of the Administrative Agent to provide the
Borrower with any such notice shall not result in any liability on the part of
the Administrative Agent to the Borrower.

(d)           Notwithstanding
any other provision in this Agreement, if, at any time after the date hereof
and from time to time, any Lender shall have determined in good faith that the
introduction of or any change in any applicable law, rule or regulation or
in the interpretation or administration thereof by any Governmental Authority
charged with the interpretation or administration thereof, or compliance with
any guideline or request from any such Governmental Authority (whether or not
having the force of law), has or would have the effect of making it unlawful
for such Lender to make or to continue to make or maintain LIBOR Loans, such
Lender will forthwith so notify the Administrative Agent and the Borrower. Upon
such notice, (i) each of such Lender’s then outstanding LIBOR Loans shall
automatically, on the expiration date of the respective Interest Period
applicable thereto (or, to the extent any such LIBOR Loan may not lawfully be
maintained as a LIBOR Loan until such expiration date, upon such notice) and to
the extent not sooner prepaid, be converted into a Base Rate Loan, (ii) the
obligation of such Lender to make, to convert Base Rate Loans into, or to
continue, LIBOR Loans shall be suspended (including pursuant to any Borrowing
for which the Administrative Agent has received a Notice of Borrowing but for
which the Borrowing Date has not arrived), and (iii) any Notice of
Borrowing or Notice of Conversion/Continuation given at any time thereafter
with respect to LIBOR Loans shall, as to such Lender, be deemed to be a request
for a Base Rate Loan, in each case until such Lender shall have determined that
the circumstances giving rise to such suspension no longer exist and shall have
so notified the Administrative Agent, and the Administrative Agent shall have
so notified the Borrower. The Administrative Agent will notify the Borrower
promptly upon the termination of any such suspension; provided, however,
that the failure of the Administrative Agent to provide the Borrower with any
such notice shall not result in any liability on the part of the Administrative
Agent to the Borrower.

(e)           A
certificate (which shall be in reasonable detail) showing the bases for the
determinations set forth in this Section 2.16
by any Lender as to any additional amounts payable pursuant to this Section 2.16 shall be submitted by such Lender to the
Borrower either directly or through the Administrative Agent. The
determinations set forth in any such certificate for purposes of this Section 2.16 of any increased costs, reduction in
return, market contingencies, illegality or any other matter shall, absent
manifest error, be conclusive, provided that such determinations are
made in good faith. Nothing in this Section 2.16
shall require or be construed to require the Borrower to pay any interest,
fees, costs or other amounts in excess of that permitted by applicable law.

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2.17         Taxes.

(a)           Any
and all payments by the Borrower hereunder or under any Note shall be made, in
accordance with the terms hereof and thereof, free and clear of and without
deduction for any and all present or future taxes, levies, imposts, deductions,
charges or withholdings, and all liabilities with respect thereto, excluding
taxes imposed on, or measured by, the overall net income or profits (or
franchise taxes imposed in lieu thereof) of the Administrative Agent or any
Lender by the jurisdiction (or any political subdivision thereof) under the
laws of which the Administrative Agent or such Lender 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 (all such nonexcluded taxes, levies,
imposts, deductions, charges, withholdings and liabilities being hereinafter
referred to as “Taxes”). If the Borrower shall be required by law to
deduct any Taxes from or in respect of any sum payable hereunder or under any
Note to the Administrative Agent or any Lender, (i) the sum payable shall
be increased as may be necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section 2.17), the Administrative Agent or such Lender,
as the case may be, receives an amount equal to the sum it would have received
had no such deductions been made, (ii) the Borrower will make such
deductions, (iii) the Borrower will pay the full amount deducted to the
relevant taxation authority or other authority in accordance with applicable
law and (iv) the Borrower will deliver to the Administrative Agent or such
Lender, as the case may be, evidence of such payment.

(b)           The
Borrower will indemnify the Administrative Agent and each Lender for the full
amount of Taxes (including, without limitation, any Taxes imposed by any
jurisdiction on amounts payable under this Section 2.17) paid by the Administrative Agent or such
Lender, as the case may be, and any liability (including penalties, interest
and expenses) arising therefrom or with respect thereto, whether or not such
Taxes were correctly or legally asserted. This indemnification shall be made
within 30 days from the date the Administrative Agent or such Lender, as the
case may be, makes written demand therefor. Such written demand shall set forth
in reasonable detail the amount of Taxes payable and the calculation thereof.

(c)           Each
of the Administrative Agent and the Lenders agrees that if it subsequently
recovers, or receives a permanent net tax benefit with respect to, any amount
of Taxes (i) previously paid by it and as to which it has been indemnified
by or on behalf of the Borrower or (ii) previously deducted by the
Borrower (including, without limitation, any Taxes deducted from any additional
sums payable under Section 2.17(a)(i)),
the Administrative Agent or such Lender, as the case may be, shall reimburse
the Borrower to the extent of the amount of any such recovery or permanent net
tax benefit (but only to the extent of indemnity payments made, or additional
amounts paid, by or on behalf of the Borrower under this Section 2.17 with respect to the Taxes
giving rise to such recovery or tax benefit); provided, however,
that the Borrower, upon the request of the Administrative Agent or such Lender,
agrees to repay to the Administrative Agent or such Lender, as the case may be,
the amount paid over to the Borrower (together with any penalties, interest or
other charges), in the event the Administrative Agent or such Lender is
required to repay such amount to the relevant taxing authority or other
Governmental Authority. The determination by the Administrative Agent or any
Lender of the amount of any such recovery or permanent net tax benefit shall be
made in good faith and, in the absence of manifest error, be conclusive and
binding. The Administrative Agent or such Lender

 51

 

 

shall provide the Borrower with a certificate (which shall be in
reasonable detail) showing the calculations of the distributions to the
Borrower pursuant to this Section 2.17(c).

(d)           If any Lender
is not a United States person (as such term is defined in Section 7701(a)(30)
of the Code) for federal income tax purposes (a “Non-U.S. Lender”) and
is entitled to an exemption from or a reduction of United States withholding
tax pursuant to the Internal Revenue Code, such Non-U.S. Lender will deliver to
each of the Administrative Agent and the Borrower, on or prior to the Closing
Date (or, in the case of a Non-U.S. Lender that becomes a party to this
Agreement as a result of an assignment after the Closing Date, on the effective
date of such assignment), (i) in the case of a Non-U.S. Lender that is a “bank”
for purposes of Section 881(c)(3)(A) of the Internal Revenue Code,
two accurate and properly completed original signed copies of Internal Revenue
Service Form W-8BEN, W-8IMY (including all appropriate
attachments) or W-8ECI, as applicable (or successor forms), certifying
that such Non-U.S. Lender is entitled to an exemption from or a reduction of
withholding or deduction for or on account of United States federal income
taxes in connection with payments under this Agreement or any of the Notes, (ii) in
the case of a Non-U.S. Lender that is not a “bank” for purposes of Section 881(c)(3)(A) of
the Internal Revenue Code, a certificate in form and substance reasonably
satisfactory to the Administrative Agent and the Borrower and to the effect
that (x) such Non-U.S. Lender is not a “bank” for purposes of Section 881(c)(3)(A) of
the Internal Revenue Code, is not subject to regulatory or other legal
requirements as a bank in any jurisdiction, and has not been treated as a bank
for purposes of any tax, securities law or other filing or submission made to
any governmental authority, any application made to a rating agency or
qualification for any exemption from any tax, securities law or other legal
requirements, (y) is not a ten (10) percent shareholder for purposes
of Section 881(c)(3)(B) of the Internal Revenue Code and (z) is
not a controlled foreign corporation receiving interest from a related person
for purposes of Section 881(c)(3)(C) of the Internal Revenue Code, together
with two accurate and properly completed Internal Revenue Service Form W-8BEN
(or successor form) or (iii) any other form or certificate required by any
taxing authority (including any certificate required by Section 871(h) of
the Code), certifying that such Non-U.S. Lender is entitled to an exemption
from or a reduction of withholding or deduction for or on account of United
States federal income taxes in connection with payments under this Agreement or
any of the Notes. Each such Non-U.S. Lender further agrees to deliver to each
of the Administrative Agent and the Borrower additional copies of each such
relevant form (or such successor forms as shall be adopted from time to time by
the relevant United States taxing authorities) on or before the date that such
form expires or becomes obsolete or after the occurrence of any event
(including a change in its applicable Lending Office) requiring a change in the
most recent forms so delivered by it, in each case certifying that such
Non-U.S. Lender is entitled to an exemption from or a reduction of withholding
or deduction for or on account of United States federal income taxes in
connection with payments under this Agreement or any of the Notes, unless an
event (including, without limitation, any change in treaty, law or regulation)
has occurred prior to the date on which any such delivery would otherwise be
required, which event renders all such forms inapplicable or the exemption or
reduction to which such forms relate unavailable and such Non-U.S. Lender
notifies the Administrative Agent and the Borrower that it is not entitled to
receive payments without or at a reduced rate of deduction or withholding of
United States federal income taxes. Each such Non-U.S. Lender will promptly
notify the Administrative Agent and the Borrower of any changes in
circumstances that would modify or render invalid any claimed exemption or
reduction. In addition, any Lender, if requested by the Borrower or 

 52
 

 

 

the Administrative Agent, will deliver such other documentation prescribed
by applicable law or reasonably requested by the Borrower or the Administrative
Agent as will enable the Borrower or the Administrative Agent to determine
whether or not such Lender is subject to backup withholding or information
reporting requirements.

(e)           The
Borrower shall not be required to indemnify any Non-U.S. Lender, or to pay any
additional amounts to any Non-U.S. Lender, in respect of United States federal
withholding tax to the extent that (i) the obligation to withhold amounts
with respect to United States federal withholding tax existed on the date such
Non-U.S. Lender became a party to this Agreement; provided, however,
that this clause (i) shall not apply to the extent that (y) the
indemnity payments or additional amounts any Lender would be entitled to
receive (without regard to this clause (i)) do not exceed the indemnity payment
or additional amounts that the person making the assignment, participation or
transfer to such Lender would have been entitled to receive in the absence of such
assignment, participation or transfer, or (z) such assignment,
participation or transfer was requested by the Borrower, (ii) the
obligation to pay such additional amounts would not have arisen but for a
failure by such Non-U.S. Lender to comply with the provisions of Section 2.17(d), or (iii) any of the
representations or certifications made by a Non-U.S. Lender pursuant to Section 2.17(d) are incorrect at the time a
payment hereunder is made, other than by reason of any change in treaty, law or
regulation having effect after the date such representations or certifications
were made.

(f)            At
the Borrower’s request and at the Borrower’s cost, each Lender shall take
reasonable steps (i) to contest such Lender’s liability for Taxes that
have not been paid or (ii) to seek a refund of Taxes. Nothing in this Section 2.17 shall obligate any Lender to disclose any
information regarding its tax affairs or computations to the Borrower.

2.18         Compensation.
The Borrower will compensate each Lender upon demand for all losses, expenses
and liabilities (including, without limitation, any loss, expense or liability
incurred by reason of the liquidation or reemployment of deposits or other
funds required by such Lender to fund or maintain LIBOR Loans) that such Lender
may incur or sustain (i) if for any reason (other than a default by such
Lender) a Borrowing or continuation of, or conversion into, a LIBOR Loan does
not occur on a date specified therefor in a Notice of Borrowing or Notice of
Conversion/Continuation, (ii) if any repayment, prepayment or conversion
of any LIBOR Loan occurs on a date other than the last day of an Interest
Period applicable thereto (including as a consequence of acceleration of the
maturity of the Loans pursuant to Section 9.2),
(iii) if any prepayment of any LIBOR Loan is not made on any date
specified in a notice of prepayment given by the Borrower or (iv) as a
consequence of any other failure by the Borrower to make any payments with
respect to any LIBOR Loan when due hereunder. Calculation of all amounts
payable to a Lender under this Section 2.18
shall be made as though such Lender had actually funded its relevant LIBOR Loan
through the purchase of a Eurodollar deposit bearing interest at the LIBOR Rate
in an amount equal to the amount of such LIBOR Loan, having a maturity
comparable to the relevant Interest Period; provided, however,
that each Lender may fund its LIBOR Loans in any manner it sees fit and the
foregoing assumption shall be utilized only for the calculation of amounts
payable under this Section 2.18.
A certificate (which shall be in reasonable detail) showing the bases for the
determinations set forth in this Section 2.18
by any Lender as to any additional amounts payable pursuant to this Section 2.18 shall be submitted by
such Lender to the Borrower either directly or through the Administrative 

 53
 

 

 

Agent. Determinations set forth in any such certificate made in good
faith for purposes of this Section 2.18
of any such losses, expenses or liabilities shall, absent manifest error, be conclusive.

2.19         Replacement
of Lenders.

(a)           The
Borrower may, at any time and so long as no Default or Event of Default has
then occurred and is continuing, replace any Lender (i) that has requested
compensation from the Borrower under Section 2.16(a),
2.16(b) or 2.17,
(ii) the obligation of which to make or maintain LIBOR Loans has been
suspended under Section 2.16(d) or (iii) that
is a Defaulting Lender, in any case under clauses (i) through (iii) above
by written notice to such Lender and the Administrative Agent given not more
than sixty (60) days after any such event and identifying one or more Persons
each of which shall be an Eligible Assignee and reasonably acceptable to the
Administrative Agent (each, a “Replacement Lender,” and collectively,
the “Replacement Lenders”) to replace such Lender (the “Replaced
Lender”), provided that (i) the notice from the Borrower to the
Replaced Lender and the Administrative Agent provided for hereinabove shall
specify an effective date for such replacement (the “Replacement Effective
Date”), which shall be at least five (5) Business Days after such
notice is given, (ii) as of the relevant Replacement Effective Date, each
Replacement Lender shall enter into an Assignment and Acceptance with the
Replaced Lender pursuant to Section 11.7(a) (but
shall not be required to pay the processing fee otherwise payable to the
Administrative Agent pursuant to Section 11.7(a),
which fee, for purposes hereof, shall be waived), pursuant to which such
Replacement Lenders collectively shall acquire, in such proportion among them
as they may agree with the Borrower and the Administrative Agent, all (but not
less than all) of the Commitments and outstanding Loans of the Replaced Lender,
and, in connection therewith, shall pay (x) to the Replaced Lender, as the
purchase price in respect thereof, an amount equal to the sum as of the
Replacement Effective Date (without duplication) of (1) the unpaid
principal amount of, and all accrued but unpaid interest on, all outstanding
Loans of the Replaced Lender and (2) the Replaced Lender’s ratable share
of all accrued but unpaid fees owing to the Replaced Lender hereunder, (y) to
the Administrative Agent, for its own account, any amounts owing to the
Administrative Agent by the Replaced Lender under Section 2.3(b),
and (z) to the Administrative Agent, for the account of the Swingline
Lender, any amounts owing to the Swingline Lender under Section 2.2(e),
and (iii) all other obligations of the Borrower owing to the Replaced
Lender (other than those specifically described in clause (ii) above
in respect of which the assignment purchase price has been, or is concurrently
being, paid), including, without limitation, amounts payable under Sections 2.16(a), 2.16(b) and
2.17 which give rise to the replacement
of such Replaced Lender and amounts payable under Section 2.18
as a result of the actions required to be taken under this Section 2.19,
shall be paid in full by the Borrower to the Replaced Lender on or prior to the
Replacement Effective Date.

(b)           Any
Lender (including the Issuing Lender in such capacity) claiming any amounts
pursuant to Section 2.16(a), 2.16(b) or 2.17 shall use reasonable efforts (consistent with legal and
regulatory restrictions) to avoid any costs, reductions or Taxes in respect of
which such amounts are claimed, including the filing of any certificate or
document reasonably requested by the Borrower or the changing of the
jurisdiction of its Lending Office if such efforts would avoid the need for or
reduce the amount of any such amounts which would thereafter accrue and would 

 54
 

 

 

not, in the sole determination of such Lender, result in any additional
costs, expenses or risks to such Lender or be otherwise disadvantageous to such
Lender.

(c)           Notwithstanding
anything to the contrary contained herein, the Borrower shall not be required
to compensate any Lender pursuant to Section 2.16(a),
2.16(b), 2.17 or 2.18 for any
increased costs, reductions in return, Taxes or other amounts incurred more
than 180 days prior to the date that such Lender or the Administrative Agent
notifies the Borrower of the circumstances or event giving rise thereto and of
its intention to claim compensation in respect thereof; provided that if
any change in law (or change in interpretation or administration thereof) or any
other such event giving rise to any claim for compensation pursuant to Sections 2.16(a), 2.16(b), 2.17 or 2.18
is retroactive, then the 180-day period referred to above shall be
extended to include the period of retroactive effect thereof.

2.20         Increase
in Revolving Credit Commitments.

(a)           The
Borrower shall have the right, at any time and from time to time after the
Closing Date by written notice to and in consultation with the Administrative
Agent, to request an increase in the aggregate Revolving Credit Commitments
(each such requested increase, a “Revolving Credit Commitment Increase”),
by having one or more existing Revolving Credit Lenders increase their
respective Revolving Credit Commitments then in effect (each, an “Increasing
Lender”), by adding as a Lender with a new Revolving Credit Commitment
hereunder one or more Persons that are not already Lenders (each, an “Additional
Revolving Credit Lender”), or a combination thereof; provided that (i) any
such request for a Revolving Credit Commitment Increase shall be in a minimum
amount of $25,000,000, (ii) immediately after giving effect to any
Revolving Credit Commitment Increase, the aggregate of all Revolving Credit
Commitment Increases effected and Incremental Term Loans made after the Closing
Date shall not exceed $75,000,000 (without regard to any repayment of
Incremental Term Loans), (iii) no Default or Event of Default shall have
occurred and be continuing on the applicable Revolving Credit Commitment
Increase Date (as hereinafter defined) or shall result from any Revolving
Credit Commitment Increase, and (iv) immediately after giving effect to
any Revolving Credit Commitment Increase (including any Borrowings in
connection therewith and the application of the proceeds thereof), the Borrower
shall be in compliance with the financial covenants contained in Article VII, such compliance
determined with regard to calculations made on a pro forma basis for the most
recently ended Reference Period for which the Administrative Agent and the
Lenders have received financial statements and a Compliance Certificate, as if
such Revolving Credit Commitment Increase (and any Borrowings in connection
therewith) had been effected on the first day of such period. Such notice from
the Borrower shall specify the requested amount of the Revolving Credit
Commitment Increase.

(b)           Each
Additional Revolving Credit Lender must qualify as an Eligible Assignee and the
Borrower and each Additional Revolving Credit Lender shall execute a joinder
agreement together with all such other documentation as the Administrative
Agent may reasonably require, all in form and substance reasonably satisfactory
to the Administrative Agent, to evidence the Revolving Credit Commitment of
such Additional Revolving Credit Lender and its status as a Revolving Credit
Lender hereunder.

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(c)           If
the aggregate Revolving Credit Commitments are increased in accordance with
this Section, the Administrative Agent and the Borrower shall determine the
effective date (the “Revolving Credit Commitment Increase Date,” which
shall be a Business Day not less than thirty (30) days prior to the Revolving
Credit Termination Date) and the final allocation of such increase. The
Administrative Agent shall promptly notify the Borrower and the Revolving
Credit Lenders of the final allocation of such increase and the Revolving
Credit Commitment Increase Date. The Administrative Agent is hereby authorized,
on behalf of the Lenders, to enter into any amendments to this Agreement and
the other Credit Documents as the Administrative Agent shall reasonably deem
necessary to effect such Revolving Credit Commitment Increase.

(d)           Notwithstanding
anything set forth in this Section 2.20
to the contrary, the Borrower shall not incur any Revolving Loans pursuant to
any Revolving Credit Commitment Increase (and no Revolving Credit Commitment
Increase shall be effective) unless the conditions set forth in Section 2.20(a) as well as the
following conditions precedent are satisfied on the applicable Revolving Credit
Commitment Increase Date:

(i)            The Administrative
Agent shall have received the following, each dated the Revolving Credit
Commitment Increase Date and in form and substance reasonably satisfactory to
the Administrative Agent:

(A)          as to each Increasing
Lender, evidence of its agreement to provide a portion of the Revolving Credit
Commitment Increase, and as to each Additional Revolving Credit Lender, a duly
executed joinder agreement together with all other documentation required by
the Administrative Agent pursuant to Section 2.20(b);

(B)           a certificate of a
Financial Officer of the Borrower, certifying that (x) as of the Revolving
Credit Commitment Increase Date, all representations and warranties of the
Credit Parties contained in this Agreement and the other Credit Documents are
true and correct in all material respects, both immediately before and after
giving effect to the Revolving Credit Commitment Increase and any Borrowings in
connection therewith (except to the extent any such representation or warranty
is expressly stated to have been made as of a specific date, in which case such
representation or warranty is true and correct in all material respects as of
such date, (y) immediately after giving effect to such Revolving Credit
Commitment Increase (including any Borrowings in connection therewith and the
application of the proceeds thereof), the Borrower is in compliance with the
financial covenants contained in Article VII,
such compliance determined with regard to calculations made on a pro forma
basis for the most recently ended Reference Period for which the Administrative
Agent and the Lenders have received financial statements and a Compliance
Certificate, as if such Revolving Credit Commitment Increase (and any
Borrowings in connection therewith) had been effected on the first day of such
period (such calculations to be attached to the certificate), and (z) no
Default or Event of Default has occurred and is continuing, both immediately
before and after giving effect to such Revolving Credit Commitment Increase
(including any Borrowings in connection therewith and the application of the
proceeds thereof); and

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(C)           such other
documents, instruments and certificates as the Administrative Agent shall have
reasonably requested;

(ii)           In the case of any
Borrowing of Revolving Loans in connection with such Revolving Credit
Commitment Increase, the conditions precedent to the making of such Revolving
Loans as set forth in Section 4.2
shall have been satisfied; and

(iii)          In the case of any
Borrowing of Revolving Loans in connection with such Revolving Credit
Commitment Increase for the purpose of funding a Permitted Acquisition, the
applicable conditions set forth in this Agreement with respect to Permitted
Acquisitions shall have been satisfied.

(e)           On
the Revolving Credit Commitment Increase Date, (i) all then outstanding
Revolving Loans (the “Initial Loans”) shall automatically be converted
into Base Rate Loans, (ii) immediately after the effectiveness of the
Revolving Credit Commitment Increase, the Borrower may, if it so requests,
convert such Base Rate Loans into LIBOR Loans (the “Subsequent Borrowings”)
in an aggregate principal amount equal to the aggregate principal amount of the
Initial Loans and of the Types and for the Interest Periods specified in a
Notice of Conversion/Continuation delivered to the Administrative Agent in
accordance with Section 2.11(b), (iii) each
Revolving Credit Lender shall pay to the Administrative Agent in immediately
available funds an amount equal to the difference, if positive, between (y) such
Lender’s pro rata percentage (calculated after giving effect to the Revolving
Credit Commitment Increase) of the Subsequent Borrowings and (z) such
Lender’s pro rata percentage (calculated without giving effect to the Revolving
Credit Commitment Increase) of the Initial Loans, (iv) after the
Administrative Agent receives the funds specified in clause (iii) above,
the Administrative Agent shall pay to each Revolving Credit Lender the portion
of such funds equal to the difference, if positive, between (y) such
Lender’s pro rata percentage (calculated without giving effect to the Revolving
Credit Commitment Increase) of the Initial Loans and (z) such Lender’s pro
rata percentage (calculated after giving effect to the Revolving Credit
Commitment Increase) of the amount of the Subsequent Borrowings, (v) the
Revolving Credit Lenders shall be deemed to hold the Subsequent Borrowings
ratably in accordance with their respective Revolving Credit Commitments
(calculated after giving effect to the Revolving Credit Commitment Increase), (vi) each
applicable Borrower shall pay all accrued but unpaid interest on the Initial
Loans to the Revolving Credit Lenders entitled thereto, and (vii) Schedule 1.1 shall automatically be
amended to reflect the Revolving Credit Commitments of all Revolving Credit
Lenders after giving effect to the Revolving Credit Commitment Increase. The
conversion of the Initial Loans pursuant to clause (i) above shall be
subject to indemnification by the Borrower pursuant to the provisions of Section 2.18 if the Revolving Credit
Commitment Increase Date occurs other than on the last day of the Interest
Period relating thereto.

2.21         Incremental
Term Loans.

(a)           The
Borrower shall have the right, at any time and from time to time after the
Closing Date by written notice to and in consultation with the Administrative
Agent, to request commitments (“Incremental Term Loan Commitments”) for
additional term loans (each, an “Incremental Term Loan,” and
collectively, the “Incremental Term Loans”) from existing Lenders, one
or more Persons that are not already Lenders (each, an “Additional Term
Lender”), 

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or a combination thereof; provided that (i) any such
request for Incremental Term Loans shall be in a minimum amount of $25,000,000,
(ii) immediately after giving effect to the making of any Incremental Term
Loans, the aggregate of all Revolving Credit Commitment Increases effected and
Incremental Term Loans made after the Closing Date shall not exceed $75,000,000
(without regard to any repayment of Incremental Term Loans), (iii) no
Default or Event of Default shall have occurred and be continuing on the
applicable Incremental Term Loan Effective Date (as hereinafter defined) or
shall result from the making of any Incremental Term Loans, and (iv) immediately
after giving effect to the making of any Incremental Term Loans and the
application of the proceeds thereof, the Borrower shall be in compliance with
the financial covenants contained in Article VII,
such compliance determined with regard to calculations made on a pro forma
basis for the most recently ended Reference Period for which the Administrative
Agent and the Lenders have received financial statements and a Compliance
Certificate, as if such Incremental Term Loans had been made on the first day
of such period. Such notice from the Borrower shall specify the requested
amount of Incremental Term Loans. All Incremental Term Loans made on the same
day shall be deemed to be a separate “Series” of Incremental Term Loans.

(b)           Each
Additional Term Lender must qualify as an Eligible Assignee and the Borrower
and each Additional Term Lender shall execute all such documentation as the
Administrative Agent may reasonably require to evidence the Incremental Term
Loan Commitment of such Additional Term Lender and its status as an Incremental
Term Lender hereunder.

(c)           If
Incremental Term Loan Commitments are provided in accordance with this Section,
the Administrative Agent and the Borrower shall determine the effective date
(each, an “Incremental Term Loan Effective Date,” which shall be a
Business Day) and the final allocation of such increase. The Administrative
Agent shall promptly notify the Borrower and the Term Lenders (and Additional
Term Lenders, if any) providing the Incremental Term Loan Commitments of the
final allocation of such increase and the Incremental Term Loan Effective Date.
Incremental Term Loan Commitments shall become Commitments under this Agreement
pursuant to (i) an amendment (each, an “Incremental Term Loan Amendment”)
to this Agreement executed by the Borrower, each Lender or Additional Term
Lender agreeing to provide such Incremental Term Loan Commitment (and no other
Lender shall be required to execute any such amendment), and the Administrative
Agent, and (ii) any amendments to the other Credit Documents (executed by
the Credit Parties party thereto and the Administrative Agent only) as the
Administrative Agent shall reasonably deem necessary to effect such purpose
(and the Administrative Agent is hereby authorized, on behalf of the Lenders,
to enter into any Incremental Term Loan Amendment or other such amendment), in
each case under (i) and (ii) above in form and substance reasonably
satisfactory to the Administrative Agent. The Incremental Term Loan Commitments
shall become effective on the Incremental Term Loan Effective Date referenced
in the applicable Incremental Term Loan Amendment, and the Incremental Term
Loans provided for thereunder shall be made in accordance with the terms and
subject to the conditions set forth therein and in this Section 2.21.

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(d)           The
Incremental Term Loans of any Series shall:

(i)            constitute
Obligations and Term Loans for all purposes under this Agreement and the other
Credit Documents;

(ii)           unless otherwise
specifically provided in this Agreement or in the applicable Incremental Term
Loan Amendment, be secured by the collateral under the Security Documents and
guaranteed under the Subsidiary Guaranty on a pari passu basis with all other
Obligations (but in no event shall any Incremental Term Loans rank senior in right
of payment or security to any other Obligations);

(iii)          have a maturity
date no earlier than the Term A-1 Loan Maturity Date;

(iv)          have such pricing
(including interest rate margins and fees) and amortization terms as may be
agreed by the Borrower and the Incremental Term Lenders providing such Series of
Incremental Term Loans; and

(v)           except as
specifically provided in clauses (ii) through (iv) above,
otherwise have terms and conditions substantially the same as (and in no event
more restrictive than the terms and conditions applicable to) Term A-1
Loans (and without limitation of the foregoing, such Incremental Term Loans
shall be entitled to the same voting rights as, and shall be entitled to
receive proceeds of voluntary and mandatory prepayments on the same basis as,
the Term A-1 Term Loans). The proceeds of any Incremental Term Loans
shall be used in accordance with Section 2.14.

(e)           Notwithstanding
anything set forth in this Section 2.21
to the contrary, the Borrower shall not incur any Series of Incremental
Term Loans (and no Incremental Term Loan Commitments shall be effective) unless
the conditions set forth in Section 2.21(a) as
well as the following conditions precedent are satisfied on the applicable
Incremental Term Loan Effective Date:

(i)            The Administrative
Agent shall have received the following, each dated the Incremental Term Loan
Effective Date and in form and substance reasonably satisfactory to the
Administrative Agent:

(A)          an Incremental Term
Loan Amendment, duly executed by the Borrower and each Incremental Term Lender
providing such Incremental Term Loans;

(B)           a certificate of a
Financial Officer of the Borrower, certifying that (x) as of the
Incremental Term Loan Effective Date, all representations and warranties of the
Credit Parties contained in this Agreement and the other Credit Documents
qualified as to materiality are true and correct and those not so qualified are
true and correct in all material respects, both immediately before and after
giving effect to the consummation of the transactions contemplated hereby
(except to the extent any such representation or warranty is expressly stated
to have been made as of a specific date, in which case such representation or
warranty is true and correct (if qualified as to materiality) or true and
correct in all 

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material
respects (if not so qualified), in each case as of such date), (y) immediately
after giving effect to the making of such Incremental Term Loans and the
application of the proceeds thereof, the Borrower is in compliance with the
financial covenants contained in Article VII,
such compliance determined with regard to calculations made on a pro forma
basis for the most recently ended Reference Period for which the Administrative
Agent and the Lenders have received financial statements and a Compliance
Certificate, as if such Incremental Term Loans had been made on the first day
of such period (such calculations to be attached to the certificate), and (z) no
Default or Event of Default has occurred and is continuing, both immediately
before and after giving effect to the making of such Incremental Term Loans and
the application of the proceeds thereof; and

(C)           such other
documents, instruments and certificates as the Administrative Agent shall have
reasonably requested;

(ii)           The conditions
precedent to the making of such Incremental Term Loans set forth in Section 4.2 shall have been satisfied;

(iii)          In the case of any
Borrowing of Incremental Term Loans for the purpose of funding a Permitted
Acquisition, the applicable conditions set forth in this Agreement with respect
to Permitted Acquisitions shall have been satisfied; and

(iv)          Any other conditions
that may be contained in the applicable Incremental Term Loan Amendment shall
have been satisfied.

ARTICLE
III

LETTERS OF CREDIT

3.1           Issuance.
Subject to and upon the terms and conditions herein set forth, so long as no
Default or Event of Default has occurred and is continuing, the Issuing Lender
will, at any time and from time to time on and after the Closing Date and prior
to the Revolving Credit Termination Date, and upon request by the Borrower in
accordance with the provisions of Section 3.2,
issue for the account of the Borrower one or more irrevocable letters of credit
denominated in Dollars and in a form customarily used or otherwise approved by
the Issuing Lender (together with all amendments, modifications and supplements
thereto, substitutions therefor and renewals and restatements thereof,
collectively, the “Letters of Credit”). The Stated Amount of each Letter
of Credit shall not be less than such amount as may be acceptable to the
Issuing Lender. Notwithstanding the foregoing:

(a)           No
Letter of Credit shall be issued if the Stated Amount upon issuance (i) when
added to the aggregate Letter of Credit Exposure of the Revolving Credit
Lenders at such time, would exceed $10,000,000, or (ii) when added to the
Aggregate Revolving Credit Exposure, would exceed the aggregate Revolving
Credit Commitments at such time;

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(b)           No
Letter of Credit shall be issued that by its terms expires later than the
Revolving Credit Maturity Date or, in any event, more than one (1) year
after its date of issuance; provided, however, that a Letter of
Credit may, if requested by the Borrower, provide by its terms, and on terms
acceptable to the Issuing Lender, for renewal for successive periods of one
year or less (but not beyond the Revolving Credit Maturity Date), unless and
until the Issuing Lender shall have delivered a notice of nonrenewal to the
beneficiary of such Letter of Credit; and

(c)           The
Issuing Lender shall be under no obligation to issue any Letter of Credit if,
at the time of such proposed issuance, (i) any order, judgment or decree
of any Governmental Authority or arbitrator shall purport by its terms to
enjoin or restrain the Issuing Lender from issuing such Letter of Credit, or
any Requirement of Law applicable to the Issuing Lender or any request or
directive (whether or not having the force of law) from any Governmental
Authority with jurisdiction over the Issuing Lender shall prohibit, or request
that the Issuing Lender refrain from, the issuance of letters of credit
generally or such Letter of Credit in particular or shall impose upon the
Issuing Lender with respect to such Letter of Credit any restriction or reserve
or capital requirement (for which the Issuing Lender is not otherwise
compensated) not in effect on the Closing Date, or any unreimbursed loss, cost
or expense that was not applicable, in effect or known to the Issuing Lender as
of the Closing Date and that the Issuing Lender in good faith deems material to
it, or (ii) the Issuing Lender shall have actual knowledge, or shall have
received notice from any Lender, prior to the issuance of such Letter of Credit
that one or more of the conditions specified in Sections 4.1 (if applicable) or 4.2
are not then satisfied (or have not been waived in writing as required herein)
or that the issuance of such Letter of Credit would violate the provisions of Section 3.1(a).

3.2           Notices.
Whenever the Borrower desires the issuance of a Letter of Credit, the Borrower
will give the Issuing Lender written notice with a copy to the Administrative
Agent not later than 12:00 noon (Charlotte, North Carolina time) three (3) Business
Days (or such shorter period as is acceptable to the Issuing Lender in any
given case) prior to the requested date of issuance thereof. Each such notice
(each, a “Letter of Credit Notice”) shall be irrevocable, shall be given
in the form of Exhibit B-4
and shall specify (i) the requested date of issuance, which shall be a
Business Day, (ii) the requested Stated Amount and expiry date of the
Letter of Credit, and (iii) the name and address of the requested
beneficiary or beneficiaries of the Letter of Credit. The Borrower will also
complete any customary application procedures and documents reasonably required
by the Issuing Lender in connection with the issuance of any Letter of Credit. Upon
its issuance of any Letter of Credit, the Issuing Lender will promptly notify
the Administrative Agent of such issuance, and the Administrative Agent will
give prompt notice thereof to each Revolving Credit Lender. The renewal or
extension of any outstanding Letter of Credit shall, for purposes of this Article III, be treated in all
respects as the issuance of a new Letter of Credit.

3.3           Participations.
Immediately upon the issuance of any Letter of Credit, the Issuing Lender shall
be deemed to have sold and transferred to each Revolving Credit Lender, and
each Revolving Credit Lender shall be deemed irrevocably and unconditionally to
have purchased and received from the Issuing Lender, without recourse or
warranty (except for the absence of Liens thereon created, incurred or suffered
to exist by, through or under the Issuing Lender), an undivided interest and
participation, pro rata (based on the percentage of the aggregate

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Revolving Credit
Commitments represented by such Revolving Credit Lender’s Revolving Credit
Commitment), in such Letter of Credit, each drawing made thereunder and the
obligations of the Borrower under this Agreement with respect thereto and any
Collateral or other security therefor or guaranty pertaining thereto; provided,
however, that the fee relating to Letters of Credit described in Section 2.9(d) shall be payable
directly to the Issuing Lender as provided therein, and the other Revolving
Credit Lenders shall have no right to receive any portion thereof. In
consideration and in furtherance of the foregoing, upon the receipt of notice
from the Issuing Lender each Revolving Credit Lender hereby absolutely and
unconditionally agrees to pay to the Administrative Agent, for the account of
the Issuing Lender, such Revolving Credit Lender’s pro rata share (determined
as provided above) of each Reimbursement Obligation not reimbursed by the
Borrower on the date due as provided in Section 3.4
or through the Borrowing of Revolving Loans as provided in Section 3.5 (because the conditions
set forth in Section 4.2
cannot be satisfied, or for any other reason), or of any reimbursement payment
required to be refunded to the Borrower for any reason. Upon any change in the
Revolving Credit Commitments of any of the Revolving Credit Lenders pursuant to
Section 11.7(a), with respect
to all outstanding Letters of Credit and Reimbursement Obligations there shall
be an automatic adjustment to the participations pursuant to this Section 3.3 to reflect the new pro
rata shares of the assigning Lender and the Assignee. Each Revolving Credit
Lender’s obligation to make payment to the Issuing Lender pursuant to this Section 3.4 shall be absolute and
unconditional and shall not be affected by any circumstance whatsoever,
including the termination of the Revolving Credit Commitments or the existence
of any Default or Event of Default, and each such payment shall be made without
any offset, abatement, reduction or withholding whatsoever.

3.4           Reimbursement.
The Borrower hereby agrees to reimburse the Issuing Lender by making payment to
the Administrative Agent, for the account of the Issuing Lender, in immediately
available funds, for any payment made by the Issuing Lender under any Letter of
Credit (each such amount so paid until reimbursed, together with interest
thereon payable as provided hereinbelow, a “Reimbursement Obligation”)
immediately after, and in any event within one (1) Business Day after its
receipt of notice of, such payment (provided that any such Reimbursement
Obligation shall be deemed timely satisfied (but nevertheless subject to the
payment of interest thereon as provided hereinbelow) if satisfied pursuant to a
Borrowing of Revolving Loans made on or prior to the next Business Day
following the date of the Borrower’s receipt of notice of such payment),
together with interest on the amount so paid by the Issuing Lender, to the
extent not reimbursed prior to 2:00 p.m. (Charlotte, North Carolina time)
on the date of such payment or disbursement, for the period from the date of
the respective payment to the date the Reimbursement Obligation created thereby
is satisfied, at the Adjusted Base Rate applicable to Revolving Loans as in
effect from time to time during such period, such interest also to be payable
on demand. The Issuing Lender will provide the Administrative Agent and the
Borrower with prompt notice of any payment or disbursement made or to be made
under any Letter of Credit, although the failure to give, or any delay in
giving, any such notice shall not release, diminish or otherwise affect the
Borrower’s obligations under this Section 3.4
or any other provision of this Agreement. The Administrative Agent will
promptly pay to the Issuing Lender any such amounts received by it under this Section 3.4.

3.5           Payment
by Revolving Loans. In the event that the Issuing Lender makes any payment
under any Letter of Credit and the Borrower shall not have timely satisfied in
full its Reimbursement Obligation to the Issuing Lender pursuant to Section 3.4, and to the extent that

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any amounts then held in the Cash Collateral Account established
pursuant to Section 3.8
shall be insufficient to satisfy such Reimbursement Obligation in full, the
Issuing Lender will promptly notify the Administrative Agent, and the
Administrative Agent will promptly notify each Revolving Credit Lender, of such
failure. If the Administrative Agent gives such notice prior to 12:00 noon
(Charlotte, North Carolina time) on any Business Day, each Revolving Credit
Lender will make available to the Administrative Agent, for the account of the
Issuing Lender, its pro rata share (based on the percentage of the aggregate
Revolving Credit Commitments represented by such Lender’s Revolving Credit
Commitment) of the amount of such payment on such Business Day in immediately
available funds. If the Administrative Agent gives such notice after 12:00 noon
(Charlotte, North Carolina time) on any Business Day, each such Revolving
Credit Lender shall make its pro rata share of such amount available to the
Administrative Agent on the next succeeding Business Day. If and to the extent
any Revolving Credit Lender shall not have so made its pro rata share of the
amount of such payment available to the Administrative Agent, such Lender
agrees to pay to the Administrative Agent, for the account of the Issuing
Lender, forthwith on demand such amount, together with interest thereon at the
Federal Funds Rate for each day from such date until the date such amount is
paid to the Administrative Agent. The failure of any Revolving Credit Lender to
make available to the Administrative Agent its pro rata share of any payment
under any Letter of Credit shall not relieve any other Revolving Credit Lender
of its obligation hereunder to make available to the Administrative Agent its
pro rata share of any payment under any Letter of Credit on the date required,
as specified above, but no Revolving Credit Lender shall be responsible for the
failure of any other Revolving Credit Lender to make available to the
Administrative Agent such other Revolving Credit Lender’s pro rata share of any
such payment. Each such payment by a Revolving Credit Lender under this Section 3.5 of its pro rata share of an amount paid by
the Issuing Lender shall constitute a Revolving Loan by such Revolving Credit
Lender (the Borrower being deemed to have given a timely Notice of Borrowing
therefor) and shall be treated as such for all purposes of this Agreement; provided
that for purposes of determining the aggregate Unutilized Revolving Credit
Commitments immediately prior to giving effect to the application of the
proceeds of such Revolving Loans, the Reimbursement Obligation being satisfied
thereby shall be deemed not to be outstanding at such time. Each Revolving
Credit Lender’s obligation to make Revolving Loans pursuant to this Section 3.5 shall be absolute and unconditional and
shall not be affected by any circumstance whatsoever, including, without
limitation, the existence of any Default or Event of Default or the failure of
the amount of such Borrowing of Revolving Loans to meet the minimum Borrowing
amount specified in Section 2.2(b);
provided, however, that each Revolving Credit Lender’s obligation to make
Revolving Loans pursuant to this Section 3.5
is subject to the conditions set forth in Section 4.2
(other than delivery by the Borrower of a Notice of Borrowing).

3.6           Payment
to Revolving Credit Lenders. Whenever the Issuing Lender receives a payment
in respect of a Reimbursement Obligation as to which the Administrative Agent
has received, for the account of the Issuing Lender, any payments from the
Revolving Credit Lenders pursuant to Section 3.5,
the Issuing Lender will promptly pay to the Administrative Agent, and the
Administrative Agent will promptly pay to each Revolving Credit Lender that has
paid its pro rata share thereof, in immediately available funds, an amount
equal to such Revolving Credit Lender’s ratable share (based on the
proportionate amount funded by such Revolving Credit Lender to the aggregate amount
funded by all Revolving Credit Lenders) of such Reimbursement Obligation.

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3.7           Obligations
Absolute. The Reimbursement Obligations of the Borrower shall be
irrevocable, shall remain in effect until the Issuing Lender shall have no
further obligations to make any payments or disbursements under any
circumstances with respect to any Letter of Credit, and, except to the extent
resulting from any gross negligence, bad faith or willful misconduct on the
part of the Issuing Lender, shall be absolute and unconditional, shall not be
subject to counterclaim, setoff or other defense or any other qualification or
exception whatsoever and shall be made in accordance with the terms and
conditions of this Agreement under all circumstances, including, without limitation,
any of the following circumstances:

(a)           Any
lack of validity or enforceability of this Agreement, any of the other Credit
Documents or any documents or instruments relating to any Letter of Credit;

(b)           Any
change in the time, manner or place of payment of, or in any other term of, all
or any of the Obligations in respect of any Letter of Credit or any other
amendment, modification or waiver of or any consent to departure from any
Letter of Credit or any documents or instruments relating thereto, in each case
whether or not the Borrower has notice or knowledge thereof;

(c)           The
existence of any claim, setoff, defense or other right that the Borrower may
have at any time against a beneficiary named in a Letter of Credit, any
transferee of any Letter of Credit (or any Person for whom any such transferee
may be acting), the Administrative Agent, the Issuing Lender, any Lender or
other Person, whether in connection with this Agreement, any Letter of Credit,
the transactions contemplated hereby or any unrelated transactions (including
any underlying transaction between the Borrower and the beneficiary named in
any such Letter of Credit);

(d)           Any
draft, certificate or any other document presented under the Letter of Credit
proving to be forged, fraudulent, invalid or insufficient in any respect or any
statement therein being untrue or inaccurate in any respect (provided
that such draft, certificate or other document appears on its face to comply
with the terms of such Letter of Credit), any errors, omissions, interruptions
or delays in transmission or delivery of any messages, by mail, telecopier or
otherwise, or any errors in translation or in interpretation of technical
terms;

(e)           Any
defense based upon the failure of any drawing under a Letter of Credit to conform
to the terms of the Letter of Credit (provided that any draft,
certificate or other document presented pursuant to such Letter of Credit
appears on its face to comply with the terms thereof), any nonapplication or
misapplication by the beneficiary or any transferee of the proceeds of such
drawing or any other act or omission of such beneficiary or transferee in
connection with such Letter of Credit;

(f)            The
exchange, release, surrender or impairment of any Collateral or other security
for the Obligations;

(g)           The
occurrence of any Default or Event of Default; or

(h)           Any
other circumstance or event whatsoever, including, without limitation, any
other circumstance that might otherwise constitute a defense available to, or a
discharge of, the Borrower or a guarantor.

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Any action taken or omitted to be taken by the Issuing
Lender under or in connection with any Letter of Credit, if taken or omitted in
the absence of gross negligence, bad faith or willful misconduct, shall be
binding upon the Borrower and each Lender and shall not create or result in any
liability of the Issuing Lender to the Borrower or any Lender. It is expressly
understood and agreed that, for purposes of determining whether a wrongful
payment under a Letter of Credit resulted from the Issuing Lender’s gross
negligence, bad faith or willful misconduct, (i) the Issuing Lender’s
acceptance of documents that appear on their face to comply with the terms of
such Letter of Credit, without responsibility for further investigation,
regardless of any notice or information to the contrary, (ii) the Issuing
Lender’s exclusive reliance on the documents presented to it under such Letter
of Credit as to any and all matters set forth therein, including the amount of
any draft presented under such Letter of Credit, whether or not the amount due
to the beneficiary thereunder equals the amount of such draft and whether or
not any document presented pursuant to such Letter of Credit proves to be
insufficient in any respect (so long as such document appears on its face to
comply with the terms of such Letter of Credit), and whether or not any other
statement or any other document presented pursuant to such Letter of Credit
proves to be forged or invalid or any statement therein proves to be inaccurate
or untrue in any respect whatsoever, and (iii) any noncompliance in any
immaterial respect of the documents presented under such Letter of Credit with
the terms thereof shall, in each case, be deemed not to constitute gross
negligence, bad faith or willful misconduct of the Issuing Lender.

3.8           Cash
Collateral Account. At any time and from time to time (i) after the
occurrence and during the continuance of an Event of Default, the
Administrative Agent may, and at the direction or with the consent of the
Required Lenders shall, require the Borrower to deliver to the Administrative
Agent such additional amount of cash as is equal to the aggregate Stated Amount
of all Letters of Credit at any time outstanding (whether or not any
beneficiary under any Letter of Credit shall have drawn or be entitled at such
time to draw thereunder) and (ii) in the event of a prepayment under Section 2.6(d), the Administrative Agent will retain
such amount as may then be required to be retained, such amounts in each case
under clauses (i) and (ii) above to be held by the
Administrative Agent in a cash collateral account (the “Cash Collateral
Account”). The Borrower hereby grants to the Administrative Agent, for the
benefit of the Issuing Lender and the Lenders, a Lien upon and security
interest in the Cash Collateral Account and all amounts held therein from time
to time as security for Letter of Credit Exposure, and for application to the
Borrower’s Obligations as and when the same shall arise. The Administrative
Agent shall have exclusive dominion and control, including the exclusive right
of withdrawal, over such account. Other than any interest on the investment of
such amounts in Cash Equivalents, which investments shall be made at the
direction of the Borrower (unless a Default or Event of Default shall have
occurred and be continuing, in which case the determination as to investments
shall be made at the option and in the discretion of the Administrative Agent),
amounts in the Cash Collateral Account shall not bear interest. Interest and profits,
if any, on such investments shall accumulate in such account. In the event of a
drawing, and subsequent payment by the Issuing Lender, under any Letter of
Credit at any time during which any amounts are held in the Cash Collateral
Account, the Administrative Agent will deliver to the Issuing Lender an amount
equal to the Reimbursement Obligation created as a result of such payment (or,
if the amounts so held are less than such Reimbursement Obligation, all of such
amounts) to reimburse the Issuing Lender therefor. Any amounts remaining in the
Cash Collateral Account (including interest) after the expiration of all
Letters of Credit and reimbursement in full of the Issuing Lender for all of
its obligations thereunder shall be held by

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the Administrative Agent, for the benefit of the Borrower, to be
applied against the Obligations in such order and manner as the Administrative
Agent may direct. If the Borrower is required to provide cash collateral
pursuant to Sections 2.6(d) or
2.6(h), such amount (including
interest), to the extent not applied as aforesaid, shall be returned to the
Borrower on demand; provided that after giving effect to such return (i) the
Aggregate Revolving Credit Exposure would not exceed the aggregate Revolving
Credit Commitments at such time and (ii) no Default or Event of Default
shall have occurred and be continuing at such time. If the Borrower is required
to provide cash collateral as a result of an Event of Default, such amount (to
the extent not applied as aforesaid) shall be returned to the Borrower within
three (3) Business Days after all Events of Default have been cured or
waived.

3.9           Effectiveness.
Notwithstanding any termination of the Revolving Credit Commitments or
repayment of the Loans, or both, the obligations of the Borrower under this Article III shall remain in full force and effect until
the Issuing Lender and the Revolving Credit Lenders shall have no further
obligations to make any payments or disbursements under any circumstances with
respect to any Letter of Credit.

ARTICLE
IV

CONDITIONS OF
BORROWING

4.1           Conditions
of Initial Borrowing. The obligation of each Lender to make Loans in
connection with the initial Borrowing hereunder, and the obligation of the
Issuing Lender to issue Letters of Credit hereunder on the Closing Date, is
subject to the satisfaction of the following conditions precedent:

(a)           The
Administrative Agent shall have received the following, each dated as of the
Closing Date (unless otherwise specified) and, except for the Notes and any
certificates or instruments required to be delivered under the Security
Documents, in sufficient copies for each Lender:

(i)            to the extent
requested by any Lender in accordance with Section 2.4(d), a Note or Notes for such Lender, in
each case duly completed in accordance with the provisions of Section 2.4(d) and executed by the Borrower;

(ii)           the Subsidiary
Guaranty, duly completed and executed by each Subsidiary (other than any
Foreign Subsidiary);

(iii)          the Security
Agreement, duly completed and executed by the Borrower and each Subsidiary
(other than any Foreign Subsidiary);

(iv)          the Pledge
Agreement, duly completed and executed by the Borrower and each Subsidiary
(other than any Foreign Subsidiary) that owns Capital Stock of another
Subsidiary, together with any certificates evidencing the Capital Stock being
pledged thereunder as of the Closing Date (limited to 65% of the Capital Stock
of any Foreign Subsidiary) and undated assignments separate from certificate
for any such certificate, duly executed in blank; and in connection with the
pledged Capital Stock of any Foreign Subsidiary, such pledge agreements,
instruments and other documents as shall, in the

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reasonable
judgment of the Administrative Agent, be required or advisable under applicable
foreign Requirements of Law in order to effect such pledge;

(v)           A Mortgage with
respect to the owned parcel of Realty located in Auburn, Maine, duly completed
and executed by the applicable Credit Party, and such documents relating to any
such Realty as may be reasonably requested by the Administrative Agent,
including, without limitation, (A) policies of title insurance for the
owned Realty from title insurance companies with respect thereto, as endorsed
in a manner reasonably satisfactory to the Administrative Agent, together with
such coinsurance and reinsurance as may be reasonably required by the
Administrative Agent, insuring such Mortgage, as a valid first lien on the
Realty, free of Liens other than Permitted Liens or other exceptions to title
approved and accepted by the Administrative Agent, (B) surveys for the
owned Realty, (C) flood certifications for the owned Realty, and (D) a
landlord agreement for each parcel of leased Realty, each of which shall be in
form and substance reasonably satisfactory to the Administrative Agent;

(vi)          amendments and
restatements of the Mortgages executed and delivered in connection with the
Existing Credit Agreement, and such documents relating to any such Realty as
may be reasonably requested by the Administrative Agent, including, without
limitation, an endorsement to the title insurance policy for each such
Mortgage, insuring such amendments and restatements of the Mortgage as a valid
first lien on the Realty, free of Liens other than Permitted Liens or other
exceptions to title approved and accepted by the Administrative Agent;

(vii)         Assignments and
Grants of Security Interests for the federally registered Intellectual Property
referred to in Annexes C, D and E of the Security Agreement, in substantially
the form of Exhibits B and C (as applicable) to the Security Agreement, in each
case duly completed and executed by each applicable Credit Party; and

(viii)        the favorable
opinions of (A) Barrett & McNagny, LLP, special counsel to the
Borrower and its Subsidiaries, (B) Greenberg Traurig, LLP, special New
York counsel to the Borrower and its Subsidiaries, (C) local counsel to
the Credit Parties in such jurisdictions as may be reasonably requested by the
Administrative Agent, and (D) local foreign counsel to the applicable
Credit Parties in such jurisdictions as may be reasonably requested by the
Administrative Agent in connection with the pledge of Capital Stock of any
Foreign Subsidiary, all in form and substance reasonably satisfactory to the
Administrative Agent.

(b)           The
Administrative Agent shall have received a certificate, signed by the
president, the chief executive officer or the chief financial officer of the
Borrower, in form reasonably satisfactory to the Administrative Agent,
certifying on behalf of the Borrower that (i) all representations and
warranties of the Credit Parties contained in this Agreement and the other
Credit Documents are true and correct in all material respects as of the
Closing Date, both immediately before and after giving effect to the
consummation of the Transactions, the making of the initial Loans hereunder and
the application of the proceeds thereof (except to the extent any such
representation or warranty is expressly stated to have been made as of a
specific date, in which case such representation or warranty shall be true and
correct in all material respects as of

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such date), (ii) no Default or Event of Default has occurred and
is continuing, both immediately before and after giving effect to the
consummation of the Transactions, the making of the initial Loans hereunder and
the application of the proceeds thereof, (iii) both immediately before and
after giving effect to the consummation of the Transactions, the making of the
initial Loans hereunder and the application of the proceeds thereof, no
Material Adverse Effect has occurred since December 31, 2005, and there
exists no event, condition or state of facts that would reasonably be expected
to result in a Material Adverse Effect, and (iv) all conditions to the
initial extensions of credit hereunder set forth in this Section 4.1 and in Section 4.2
have been satisfied or waived in writing as required hereunder.

(c)           The
Administrative Agent shall have received a certificate of the secretary or an
assistant secretary on behalf of each Credit Party executing any Credit
Documents as of the Closing Date, in form and substance reasonably satisfactory
to the Administrative Agent, certifying (i) that attached thereto is a
true and complete copy of the articles or certificate of incorporation,
certificate of formation or other organizational document and all amendments
thereto of such Credit Party, certified as of a recent date by the Secretary of
State (or comparable Governmental Authority) of its jurisdiction of
organization, and that the same has not been amended since the date of such
certification, (ii) that attached thereto is a true and complete copy of
the bylaws, operating agreement or similar governing document of such Credit
Party, as then in effect and as in effect at all times from the date on which
the resolutions referred to in clause (iii) below were adopted to and
including the date of such certificate, and (iii) that attached thereto is
a true and complete copy of resolutions adopted by the board of directors (or
similar governing body) of such Credit Party, authorizing the execution,
delivery and performance of this Agreement and the other Credit Documents to
which it is a party, and as to the incumbency and genuineness of the signature
of each officer of such Credit Party executing this Agreement or any of such
other Credit Documents, and attaching all such copies of the documents
described above.

(d)           The
Administrative Agent shall have received (i) a certificate as of a recent
date of the good standing of each Credit Party executing any Credit Documents
as of the Closing Date, under the laws of its jurisdiction of organization,
from the Secretary of State (or comparable Governmental Authority) of such
jurisdiction, and (ii) a certificate as of a recent date of the
qualification of each Credit Party to conduct business as a foreign corporation
in each jurisdiction where it is so qualified as of the Closing Date, from the
Secretary of State (or comparable Governmental Authority) of such jurisdiction.

(e)           The
Administrative Agent shall be reasonably satisfied with the corporate and
capital structure and management of the Borrower and its Subsidiaries after
giving effect to the Transactions, all legal, tax and accounting matters
relating to the Transactions or to the Borrower and its Subsidiaries after
giving effect thereto, and all documentation relating to the Transactions as it
shall have reasonably requested.

(f)            All
approvals, permits and consents of any Governmental Authorities or other
Persons required in connection with the execution and delivery of this
Agreement and the other Credit Documents and the consummation of the
Transactions shall have been obtained, without the imposition of conditions
that are not reasonably acceptable to the Administrative Agent, and all related
filings, if any, shall have been made, and all such approvals, permits,
consents and

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filings shall be in full force and effect and the Administrative Agent
shall have received such copies thereof as it shall have reasonably requested;
all applicable waiting periods shall have expired without any adverse action
being taken or threatened by any Governmental Authority having jurisdiction;
and no action, proceeding, investigation, regulation or legislation shall have
been instituted, threatened or proposed before, and no order, injunction or
decree shall have been entered by, any court or other Governmental Authority,
in each case to enjoin, restrain or prohibit, to obtain substantial damages in
respect of, or to impose materially adverse conditions upon, this Agreement, any
of the other Credit Documents, or the consummation of any of the other
Transactions or that could reasonably be expected to have a Material Adverse
Effect.

(g)           The
Administrative Agent shall have received certified reports from an independent
search service reasonably satisfactory to it listing any judgment or tax lien
filing or Uniform Commercial Code financing statement that names the Borrower,
or any of the Borrower’s Domestic Subsidiaries as debtor in any of the
jurisdictions listed beneath its name on Annex B to the Security
Agreement, as well as lien search results with respect to Foreign Subsidiaries
in their jurisdiction of organization, and the results thereof shall be
reasonably satisfactory to the Administrative Agent.

(h)           The
Administrative Agent shall have received evidence in form and substance
reasonably satisfactory to it that all filings, recordings, registrations and
other actions (including, without limitation, the filing of duly completed UCC-1
financing statements in each jurisdiction listed on Annex A to the
Security Agreement) necessary to perfect the Liens created by the Security
Documents shall have been completed, or arrangements reasonably satisfactory to
the Administrative Agent for the completion thereof shall have been made.

(i)            The
Borrower shall have paid (i) to the Arranger, the fees required under the
Engagement Letter to be paid on the Closing Date, in the amounts due and
payable on the Closing Date as required by the terms thereof, and (ii) all
other fees and reasonable expenses of the Arranger, the Administrative Agent
and the Lenders required hereunder or under any other Credit Document to be
paid on or prior to the Closing Date (including reasonable fees and
out-of-pocket expenses of counsel) in connection with this Agreement, the other
Credit Documents and the Transactions.

(j)            The
Administrative Agent shall have received (i) copies of the financial
statements referred to in Section 5.11(a) and
a Financial Condition Certificate, (ii) the Projections, (iii) unaudited
consolidated financial statements of the Borrower and its Subsidiaries as of
the last day of the month most recently ended prior to the Closing Date for
which financial statements of the Borrower and its Subsidiaries are available
and (iv) an unaudited consolidated balance sheet of the Borrower and its
Subsidiaries as of the last day of the month most recently ended prior to the
Closing Date for which financial statements of the Borrower and its
Subsidiaries are available and for that portion of the current fiscal year then
ended, giving pro forma effect to the initial extensions of credit made under
this Agreement, the payment of transaction fees and expenses related to the
foregoing, and the consummation of the other Transactions, all as if such
events had occurred on such date (the “Pro Forma Balance Sheet”), all of
which shall be in form and substance reasonably satisfactory to the
Administrative Agent.

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(k)           The
Administrative Agent shall be reasonably satisfied that the proceeds of the
Term A-1 Loans, in part, have been applied to prepay in full the
revolving loans made to the Borrower under the Existing Credit Agreement.

(l)            The
Administrative Agent shall have received evidence in form and substance
reasonably satisfactory to it that all of the requirements of Section 6.6 and those provisions of the Security
Agreement relating to the maintenance of insurance with respect to the
Collateral have been satisfied, including receipt of certificates of insurance
evidencing the insurance coverages described on Schedule 5.18
and all other or additional coverages required under the Security Agreement and
naming the Administrative Agent as loss payee or additional insured (or
assignee with respect to business interruption insurance), as its interests may
appear.

(m)          There
shall not have occurred any material disruption or material adverse change in,
or other condition with respect to, the United States financial and capital
markets that could reasonably be expected to have a material adverse effect on
the syndication of the credit facilities provided for hereunder.

(n)           The
Administrative Agent shall have received an Account Designation Letter,
together with written instructions from an Authorized Officer, including wire
transfer information, directing the payment of the proceeds of the initial
Loans to be made hereunder.

(o)           Each
of the Administrative Agent and each Lender shall have received such other
documents, certificates, opinions and instruments in connection with the
transactions contemplated hereby as it shall have reasonably requested.

4.2           Conditions
of All Borrowings. The obligation of each Lender to make any Loans
hereunder, including the initial Loans and any Incremental Term Loans (but
excluding Revolving Loans made for the purpose of repaying Refunded Swingline
Loans pursuant to Section 2.2(e)),
and the obligation of the Issuing Lender to issue any Letters of Credit
hereunder, is subject to the satisfaction of the following conditions precedent
on the relevant Borrowing Date or date of issuance:

(a)           The
Administrative Agent shall have received a Notice of Borrowing in accordance
with Section 2.2(b),
or (together with the Swingline Lender) a Notice of Swingline Borrowing in
accordance with Section 2.2(d), or (together
with the Issuing Lender) a Letter of Credit Notice in accordance with Section 3.2, as applicable;

(b)           Each
of the representations and warranties contained in Article V and in the other Credit Documents shall be
true and correct in all material respects on and as of such Borrowing Date
(including the Closing Date, in the case of the initial Loans made hereunder)
or date of issuance of a Letter of Credit with the same effect as if made on
and as of such date, both immediately before and after giving effect to the
Loans to be made or Letter of Credit to be issued on such date (except to the
extent any such representation or warranty is expressly stated to have been
made as of a specific date, in which case such representation or warranty shall
be true and correct in all material respects as of such date); and

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(c)           No
Default or Event of Default shall have occurred and be continuing on such date,
both immediately before and after giving effect to the Loans to be made or
Letter of Credit to be issued on such date.

Each giving of a Notice
of Borrowing, a Notice of Swingline Borrowing or a Letter of Credit Notice, and
the consummation of each Borrowing or issuance of a Letter of Credit, shall be
deemed to constitute a representation by the Borrower that the statements
contained in Sections 4.2(b) and  4.2(c) are true, both as of the date
of such notice or request and as of the relevant Borrowing Date or date of
issuance.

ARTICLE V

REPRESENTATIONS AND
WARRANTIES

To induce the
Administrative Agent, the Issuing Lender and the Lenders to enter into this
Agreement and to induce the Lenders to extend the credit contemplated hereby
and the Issuing Lender to issue Letters of Credit, the Borrower represents and
warrants to the Administrative Agent, the Issuing Lender and the Lenders as
follows:

5.1           Corporate
Organization and Power. Each of the Credit Parties (i) is a
corporation, a limited liability company, limited partnership or other legal
entity, as the case may be, duly organized or formed, validly existing and in
good standing under the laws of the jurisdiction of its incorporation or
formation, as the case may be, (ii) has the full corporate, partnership,
limited liability company or other power and authority to execute, deliver and
perform the Credit Documents to which it is or will be a party, to own and hold
its property and to engage in its business as presently conducted, and (iii) is
duly qualified to do business as a foreign corporation, partnership, limited
liability company or other legal entity and is in good standing in each
jurisdiction where the nature of its business or the ownership of its
properties requires it to be so qualified, except where the failure to be so
qualified would not, individually or in the aggregate, be reasonably likely to
have a Material Adverse Effect.

5.2           Authorization;
Enforceability. Each of the Credit Parties has taken, or on the Closing
Date will have taken, all necessary corporate, partnership, limited liability
or other legal action, as applicable, to execute, deliver and perform each of
the Credit Documents to which it is or will be a party, and has, or on the
Closing Date (or any later date of execution and delivery) will have, validly
executed and delivered each of the Credit Documents to which it is or will be a
party. This Agreement constitutes, and each of the other Credit Documents upon
execution and delivery will constitute, the legal, valid and binding obligation
of each of the Credit Parties that is a party hereto or thereto, enforceable
against it in accordance with its terms, except as enforceability may be limited
by bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting creditors’ rights generally, by general equitable principles or by
principles of good faith and fair dealing (regardless of whether enforcement is
sought in equity or at law).

5.3           No
Violation. The execution, delivery and performance by each of the Credit
Parties of each of the Credit Documents to which it is or will be a party, and
compliance by it with the terms hereof and thereof, do not and will not (i) violate
any provision of its articles or certificate of incorporation or formation, its
bylaws or other applicable formation or

 

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organizational documents,
(ii) contravene any other Requirement of Law applicable to it, (iii) conflict
with, result in a breach of or constitute (with notice, lapse of time or both)
a default under any indenture, agreement or other instrument to which it is a
party, by which it or any of its properties is bound or to which it is subject,
or (iv) except for the Liens granted in favor of the Administrative Agent
pursuant to the Security Documents and other Permitted Liens, result in or
require the creation or imposition of any Lien upon any of its properties,
revenues or assets; except, in the case of clauses (ii) and (iii) above,
where such violations or conflicts would not, individually or in the aggregate,
be reasonably likely to have a Material Adverse Effect.

5.4           Governmental and
Third-Party Authorization; Permits.

(a)           No consent,
approval, authorization or other action by, notice to, or registration or
filing with, any Governmental Authority or other Person is or will be required
as a condition to or otherwise in connection with the due execution, delivery
and performance by each of the Credit Parties of this Agreement or any of the
other Credit Documents to which it is or will be a party or the legality,
validity or enforceability hereof or thereof, other than (i) filings of
Uniform Commercial Code financing statements and other instruments and actions
necessary to perfect the Liens created by the Security Documents, (ii) consents,
authorizations and filings that have been (or on or prior to the Closing Date
will have been) made or obtained and that are (or on the Closing Date will be)
in full force and effect, which consents, authorizations and filings are listed
on Schedule 5.4,
(iii) the filing of a Form 8-K with the Securities and Exchange
Commission describing the execution of this Agreement, and (iv) consents
and filings the failure to obtain or make which would not, individually or in
the aggregate, be reasonably likely to have a Material Adverse Effect.

(b)           Each of the Credit
Parties has, and is in good standing with respect to, all governmental
approvals, licenses, permits and authorizations necessary to conduct its
business as presently conducted and to own or lease and operate its properties,
except for those the failure to obtain which would not, individually or in the
aggregate, be reasonably likely to have a Material Adverse Effect.

5.5           Litigation.
There are no actions, investigations, suits or proceedings pending or, to the
knowledge of the Borrower, threatened, at law, in equity or in arbitration,
before any court, other Governmental Authority or other Person, (i) against
or affecting any of the Credit Parties or any of their respective properties
that would, if adversely determined, be reasonably likely to have a Material
Adverse Effect, or (ii) with respect to this Agreement, any of the other
Credit Documents or any of the transactions contemplated hereby or thereby.

5.6           Taxes.
Each of the Credit Parties has timely filed all material federal, state, local
and foreign tax returns and reports required to be filed by it and has paid,
prior to the date on which penalties would attach thereto or a Lien would
attach to any of the properties of a Credit Party if unpaid, all taxes,
assessments, fees and other charges levied upon it or upon its properties that
are shown thereon as due and payable, other than those (i) that are not
yet delinquent, (ii) the failure to pay which would not, individually or
in the aggregate, be reasonably likely to have a Material Adverse Effect, (iii) that
are disclosed on Schedule 5.6,
or (iv) that are being contested in good faith and by proper proceedings
and for which adequate reserves have been established in accordance with GAAP. Such
returns accurately reflect in all 

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material respects all liability for taxes of the Credit Parties for the
periods covered thereby. As of the Closing Date, there is no ongoing audit or
examination or, to the knowledge of the Borrower, other investigation by any
Governmental Authority of the tax liability of any of the Credit Parties, and
there is no material unresolved claim by any Governmental Authority concerning
the tax liability of any of the Credit Parties for any period for which tax
returns have been or were required to have been filed, other than unsecured
claims for which adequate reserves have been established in accordance with
GAAP. As of the Closing Date, no Credit Party has waived or extended or has
been requested to waive or extend the statute of limitations relating to the
payment of any taxes.

5.7           Subsidiaries.
Schedule 5.7 sets forth a
list, as of the Closing Date and after giving effect to the Transactions, of
all of the Subsidiaries of the Borrower and (i) as to each such
Subsidiary, the percentage ownership (direct and indirect) of the Borrower in
each class of its Capital Stock and each direct owner thereof, and (ii) as
to each of the Borrower and its Subsidiaries, the jurisdiction of its
organization, the number of shares of each class of Capital Stock outstanding,
and the number and effect, if exercised, of all outstanding options, warrants,
rights of conversion or purchase and similar rights. Except for the shares of
Capital Stock and the other equity arrangements expressly indicated on Schedule 5.7, as of the Closing Date
there are no shares of Capital Stock, warrants, rights, options or other equity
securities, or other Capital Stock of any Credit Party outstanding or reserved
for any purpose.

5.8           Full
Disclosure. All material factual information heretofore, contemporaneously
or hereafter furnished in writing to the Administrative Agent, the Arranger or
any Lender by or on behalf of any of the Credit Parties (other than
projections, budgets or other estimates) for purposes of or in connection with
this Agreement, the other Credit Documents, and the Transactions is or will be,
taken as a whole, true and accurate in all material respects on the date as of
which such information is dated or certified (or, if such information has been
updated, amended or supplemented, on the date as of which any such update,
amendment or supplement is dated or certified) and not made incomplete by
omitting to state a material fact necessary to make the statements contained
herein and therein, in light of the circumstances under which such information
was provided, not misleading in any material respect when taken as a whole. As
of the Closing Date, there is no fact known to any Credit Party which has, or
would reasonably be expected to have, a Material Adverse Effect, which fact has
not been set forth herein, in the financial statements of the Borrower and its
Subsidiaries furnished to the Administrative Agent and/or the Lenders, or in
any certificate, opinion, or other written statement made or furnished by the
Borrower to the Administrative Agent and/or the Lenders. With respect to
projections, budgets and other estimates, except as specifically represented in
Section 5.11(c), the Borrower
represents only that such information was prepared in good faith based upon
reasonable assumptions, it being understood that any projected financial information
represents projections, based upon various assumptions, of future results of
operations and that actual results during the period or periods covered by such
projections may differ from the projected results.

5.9           Margin
Regulations. None of the Credit Parties 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. No proceeds of the Loans will
be used, directly or indirectly, to purchase or carry any Margin Stock, to
extend credit for such purpose or for any other purpose, in each 

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case that would violate or be inconsistent with Regulations T, U or X
or any provision of the Exchange Act.

5.10         No
Material Adverse Effect. There has been no Material Adverse Effect since December 31,
2005, and there exists no event, condition or state of facts that would
reasonably be expected to result in a Material Adverse Effect.

5.11         Financial Matters.

(a)           The
Borrower has heretofore furnished to the Administrative Agent copies of (i) the
audited consolidated balance sheets of the Borrower and its Subsidiaries as of December 31,
2005, January 1, 2005 and January 3, 2004, and the related statements
of income, cash flows and stockholders’ equity for the fiscal years then ended,
together with the opinion of Ernst & Young LLP thereon and (ii) the
unaudited consolidated balance sheet of the Borrower and its Subsidiaries as of
the last day of the first quarter of fiscal year 2006, and the related
statements of income, cash flows and stockholders’ equity for the one-quarter period then ended. Such
financial statements have been prepared in accordance with GAAP (subject, with
respect to the unaudited financial statements, to the absence of notes required
by GAAP and to normal year-end adjustments and present fairly in all material
respects the consolidated financial condition of the Borrower and its
Subsidiaries as of the respective dates thereof and the consolidated results of
operations of the Borrower and its Subsidiaries for the respective periods then
ended. Except as fully reflected in the most recent financial statements
referred to above and the notes thereto, there are no material liabilities or
obligations with respect to the Borrower and its Subsidiaries of any nature
whatsoever (whether absolute, contingent or otherwise and whether or not due)
that are required in accordance with GAAP to be reflected in such financial
statements and that are not so reflected.

(b)           The
Pro Forma Balance Sheet gives pro forma effect to the initial extensions of
credit made under this Agreement, the payment of transaction fees and expenses
related to the foregoing, and the consummation of the other Transactions, all
as if such events had occurred on the date as of which the Pro Forma Balance Sheet
is prepared. The Pro Forma Balance Sheet has been prepared in accordance with
GAAP (subject to the absence of footnotes required by GAAP and subject to
normal year-end adjustments) and, based on stated assumptions made in good
faith and having a reasonable basis set forth therein, presents fairly in all
material respects the consolidated financial condition of the Borrower and its
Subsidiaries on an unaudited pro forma basis as of the date set forth therein
after giving effect to the consummation of the transactions described above.

(c)           The
Borrower has prepared, and has heretofore furnished to the Administrative Agent
a copy of, projected consolidated balance sheets and statements of income and
cash flows of the Borrower and its Subsidiaries for the six fiscal-year period
through the end of the fourth
fiscal quarter of fiscal year 2011, giving effect to the initial extensions of
credit made under this Agreement, the payment of transaction fees and expenses
related to the foregoing, and the consummation of the other Transactions (the “Projections”).
In the good faith opinion of management of the Borrower, the assumptions used
in the preparation of the Projections were fair, complete and reasonable when
made and continue to be fair, complete and reasonable as of the date hereof. The
Projections have been prepared in good faith by the executive and financial 

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personnel of the Borrower, are complete and represent a reasonable
estimate of the future performance and financial condition of the Borrower and
its Subsidiaries, subject to the uncertainties and approximations inherent in
any projections.

(d)           After
giving effect to the consummation of the Transactions, the Credit Parties taken
as a whole on a consolidated basis (i) have capital sufficient to carry on
their businesses as conducted and as proposed to be conducted, (ii) have
assets with a fair saleable value, determined on a going concern basis, which
are (y) not less than the amount required to pay the probable liability on
their existing debts as they become absolute and matured and (z) greater
than the total amount of their liabilities (including identified contingent
liabilities, valued at the amount that can reasonably be expected to become
absolute and matured in their ordinary course), and (iii) do not intend
to, and do not believe that they will, incur debts or liabilities beyond their
ability to pay such debts and liabilities as they mature in their ordinary
course.

5.12         Ownership
of Properties. Each of the Credit Parties (i) has good and marketable
title to all real property owned by it, (ii) holds interests as lessee
under leases in full force and effect with respect to all material leased real
and personal property used in connection with its business, and (iii) has
good title to all of its other material properties and assets reflected in the
most recent financial statements referred to in Section 5.11(a) (except as sold or otherwise
disposed of since the date thereof prior to the Closing Date or as permitted
under Section 8.4), in each
case free and clear of all Liens other than Permitted Liens. Schedule 5.12 lists, as of the Closing
Date and after giving effect to the Transactions, all Realty of the Credit
Parties, indicating in each case the identity of the owner, the address of the
property, the nature of use of the premises, and whether such interest is a
leasehold or fee ownership interest.

5.13         ERISA.

(a)           Each
of the Credit Parties and its ERISA Affiliates is in compliance with the
applicable provisions of ERISA, and each Plan is and has been administered in
compliance with all applicable Requirements of Law, including, without
limitation, the applicable provisions of ERISA and the Internal Revenue Code,
except where the failure so to comply would not, individually or in the
aggregate, be reasonably likely to have a Material Adverse Effect. No ERISA
Event (i) has occurred within the five (5) year period prior to the
Closing Date, (ii) has occurred and is continuing, or (iii) to the
knowledge of the Borrower, is reasonably expected to occur with respect to any
Plan, in each case under clauses (i) through (iii) above except to
the extent the same would not, individually or in the aggregate, be reasonably
likely to have a Material Adverse Effect. No Plan has any Unfunded Pension
Liability as of the most recent annual valuation date applicable thereto, and
none of the Credit Parties nor any of their respective ERISA Affiliates has
engaged in a transaction that could be subject to Section 4069 or 4212(c) of
ERISA, other than any such liabilities or transactions that would not,
individually or in the aggregate, be reasonably likely to have a Material
Adverse Effect.

(b)           None
of the Credit Parties nor any of their respective ERISA Affiliates has had a
complete or partial withdrawal from any Multiemployer Plan, and none of the
Credit Parties nor any of their respective ERISA Affiliates would become
subject to any liability under ERISA if any such Credit Party or ERISA
Affiliate were to withdraw completely from all Multiemployer Plans as of the
most recent valuation date except where such withdrawal or liability would not,

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individually or in the aggregate, be reasonably likely to have a
Material Adverse Effect. No Multiemployer Plan is in “reorganization” or is “insolvent”
within the meaning of such terms under ERISA except where such reorganization
or insolvency would not, individually or in the aggregate, be reasonably likely
to have a Material Adverse Effect.

5.14         Environmental
Matters. Except as set forth on Schedule 5.14
and except as would not, individually or in the aggregate, be reasonably likely
to have a Material Adverse Effect:

(a)           No
Hazardous Substances are or have been generated, used, located, released,
treated, transported, disposed of or stored, currently or in the past, (i) by
any Credit Party, or (ii) in, on, under, about or to or from any real
property leased, operated or owned by any Credit Party, except in each case in
compliance with all applicable Environmental Laws; and no portion of any such
real property currently or at any time in the past leased, owned or operated by
any Credit Party is contaminated by or contains any Hazardous Substance in
amounts requiring investigation, remediation or any other action under any
Environmental Law.

(b)           (i) No
real property leased, operated or owned by any Credit Party has been used by
any Credit Party or, to the knowledge of the Borrower, by any other Person, as
or for a mine, landfill, dump or other disposal facility, gasoline service
station or bulk petroleum products storage facility, (ii) no portion of
such real property or any other real property currently or at any time in the
past leased, owned or operated by any Credit Party is currently, or to the
knowledge of the Borrower has, pursuant to any Environmental Law, been placed
on the “National Priorities List” or “CERCLIS List” (or any similar federal,
state or local list), and (iii) there are not and, to the knowledge of the
Borrower, have never been any underground storage tanks situated on any real
property leased, operated or owned by any Credit Party.

(c)           All
activities and operations of the Credit Parties are in compliance with the
requirements of all applicable Environmental Laws; each Credit Party has
obtained all licenses and permits under Environmental Laws necessary to its
respective operations; all such licenses and permits are being maintained in
good standing and each of the Credit Parties is in compliance with all terms
and conditions of such licenses and permits; and none of the Credit Parties is
involved in or subject to any actual or alleged Environmental Claims and, to
the knowledge of the Borrower, there are no threatened Environmental Claims
involving any Credit Party.

5.15         Compliance
with Laws. Each Credit Party has timely filed all material reports,
documents and other materials required to be filed by it under all applicable
Requirements of Law with any Governmental Authority, has retained all material
records and documents required to be retained by it under all applicable
Requirements of Law, and is otherwise in compliance with all applicable
Requirements of Law in respect of the conduct of its business and the ownership
and operation of its properties (including, without limitation, the PATRIOT
Act), except in each case to the extent that the failure to comply therewith,
individually or in the aggregate, would not be reasonably likely to have a
Material Adverse Effect.

5.16         Intellectual
Property. Each of the Credit Parties owns, or has the legal right to use,
all Intellectual Property necessary for it to conduct its business as currently
conducted. 

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Schedule 5.16 lists, as of the Closing
Date and after giving effect to the Transactions, all registered Intellectual
Property owned by any Credit Party. No claim has been asserted or is pending by
any Person challenging or questioning the use of any such Intellectual Property
or the validity or effectiveness of any such Intellectual Property, nor does
the Borrower know of any such claim, and to the knowledge of the Borrower, the
use of such Intellectual Property by any Credit Party does not infringe on the
known rights of any Person, except for such claims and infringements that would
not, individually or in the aggregate, be reasonably likely to have a Material
Adverse Effect.

5.17         Regulated
Industries. None of the Credit Parties is (i) an “investment company,”
a company “controlled” by an “investment company,” or an “investment advisor,”
within the meaning of the Investment Company Act of 1940, as amended, or (ii) a
“holding company,” a “subsidiary company” of a “holding company,” or an “affiliate”
of a “holding company” or of a “subsidiary company” of a “holding company,”
within the meaning of the Public Utility Holding Company Act of 1935, as
amended.

5.18         Insurance.
Schedule 5.18 sets forth, as
of the Closing Date and after giving effect to the Transactions, an accurate
and complete list and a brief description (including the insurer, policy
number, type of insurance, coverage limits, deductibles, current premium,
expiration dates and any special cancellation conditions) of all material
policies of fire, liability (including, but not limited to, product liability),
business interruption, workers’ compensation, and other forms of insurance
owned or held by the Borrower and its Subsidiaries or pursuant to which any of
their respective assets are insured as of the Closing Date. The assets,
properties and business of the Borrower and its Subsidiaries are insured
against such hazards and liabilities, under such coverages and in such amounts,
as are customarily maintained by prudent companies similarly situated and under
policies issued by insurers of recognized responsibility.

5.19         Security
Documents.

(a)           The
provisions of each of the Security Documents other than the Mortgages (whether
executed and delivered prior to or on the Closing Date or thereafter) are and
will be effective to create in favor of the Administrative Agent, for its
benefit and the benefit of the Lenders, a valid and enforceable security
interest in and Lien upon all right, title and interest of each of the Credit Parties
that is a party thereto in and to the Collateral purported to be pledged by it
thereunder and described therein, and upon (i) the initial extension of
credit hereunder, (ii) the filing of appropriately completed Uniform
Commercial Code financing statements and continuations thereof in the
jurisdictions specified therein, (iii) the filing of appropriately
completed short-form assignments in the U.S. Patent and Trademark Office and
the U.S. Copyright Office, and (iv) the possession by the Administrative
Agent of any certificates evidencing the securities pledged thereby, duly
endorsed or accompanied by duly executed stock powers, such security interest
and Lien shall constitute a fully perfected and first priority security
interest in and Lien upon such right, title and interest of the applicable
Credit Party in and to such Collateral, to the extent that such security
interest and Lien can be perfected by such filings, actions and possession,
subject only to Permitted Liens.

(b)           The
provisions of each Mortgage (whether executed and delivered prior to or on the
Closing Date or thereafter) are and will be effective to create in favor of the
Administrative 

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Agent, for its benefit and the benefit of the Lenders, a valid and
enforceable security interest in and Lien upon all right, title and interest of
each Credit Party that is a party thereto in and to the mortgaged premises
described therein, and upon (i) the initial extension of credit hereunder
and (ii) the filing of such Mortgage in the applicable real property
recording office, such security interest and Lien shall constitute a fully
perfected and first priority security interest in and Lien upon such right,
title and interest of such Credit Party in and to such mortgaged premises, in
each case prior and superior to the rights of any other Person and subject only
to Permitted Liens.

5.20         Labor
Relations. None of the Credit Parties is engaged in any unfair labor
practice within the meaning of the National Labor Relations Act of 1947, as
amended. As of the Closing Date, there is (i) no unfair labor practice
complaint before the National Labor Relations Board, or grievance or
arbitration proceeding arising out of or under any collective bargaining
agreement, pending or, to the knowledge of the Borrower, threatened, against
any of the Credit Parties, (ii) no strike, lock-out, slowdown, stoppage,
walkout or other labor dispute pending or, to the knowledge of the Borrower,
threatened, against any of the Credit Parties, and (iii) to the knowledge
of the Borrower, no petition for certification or union election or union
organizing activities taking place with respect to any of the Credit Parties. As
of the Closing Date, there are no collective bargaining agreements or
Multiemployer Plans covering the employees of the Credit Parties.

5.21         No
Burdensome Restrictions.

(a)           No
Subsidiary is a party to any agreement or instrument or otherwise subject to
any restriction or encumbrance that restricts or limits its ability to make
dividend payments or other distributions in respect of its Capital Stock, to
repay Indebtedness owed to the Borrower or any other Subsidiary, to make loans
or advances to the Borrower or any other Subsidiary, or to transfer any of its
assets or properties to the Borrower or any other Subsidiary, in each case
other than such restrictions or encumbrances existing under or by reason of (i) this
Agreement and the other Credit Documents, (ii) applicable Requirements of
Law, (iii) customary non-assignment provisions in operating leases and
licenses of real or personal property entered into by the Borrower or any of
its Subsidiaries as lessee or licensee in the ordinary course of business, and (iv) the
Foreign Working Capital Facility (subject to the provisions of Section 8.11).

(b)           No
Credit Party is a party to any written agreement or instrument or subject to
any other obligations or any charter or corporate restriction or any provision
of any applicable Requirement of Law that, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.

5.22         OFAC.
No Credit Party (i) is or will become a Person whose property or interests
in property are 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 or will engage
in any dealings or transactions prohibited by Section 2 of such Executive
Order, or be otherwise associated with any such Person in any manner violative
of Section 2, or (iii) will otherwise become a Person on the list of
Specially Designated Nationals and Blocked Persons or subject to the
limitations or prohibitions under any other OFAC regulation or executive order.

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5.23         Deposit
Accounts. Schedule 5.23
lists, as of the Closing Date and after giving effect to the Transactions, all
deposit accounts maintained by any Credit Party at any bank or other financial
institution located in the United States (other than deposit accounts
maintained with the Administrative Agent), and lists in each case the name in
which the account is held, the name of the depository institution, the type of
account and the account number.

ARTICLE
VI

AFFIRMATIVE COVENANTS

The Borrower
covenants and agrees that, until the termination of the Commitments, the
termination or expiration of all Letters of Credit and the payment in full of
all principal and interest with respect to the Loans and all Reimbursement
Obligations together with all other amounts then due and owing hereunder (other
than contingent and indemnification obligations not then due and payable):

6.1           Financial
Statements. The Borrower will deliver to the Administrative Agent and to
each Lender:

(a)           Within
forty-five (45) days (or, if earlier and if applicable to the Borrower, the
quarterly report deadline under the Exchange Act rules and regulations)
after the end of each of the first three fiscal quarters of each fiscal year
(and within sixty (60) days after the end of the fourth fiscal quarter of each
fiscal year), beginning with the second fiscal quarter of fiscal year 2006,
unaudited consolidated and consolidating balance sheets of the Borrower and its
Subsidiaries as of the end of such fiscal quarter and unaudited consolidated
and consolidating statements of income and cash flows for the Borrower and its
Subsidiaries for the fiscal quarter then ended and for that portion of the
fiscal year then ended, in each case setting forth comparative consolidated (or
consolidating) figures as of the end of and for the corresponding period in the
preceding fiscal year together with comparative budgeted figures for the fiscal
year then ended, all in reasonable detail and prepared in accordance with GAAP
(subject to the absence of notes required by GAAP and subject to normal
year-end adjustments) applied on a basis consistent with that of the preceding
quarter or containing disclosure of the effect on the financial condition or
results of operations of any change in the application of accounting principles
and practices during such quarter; and

(b)           Within
ninety (90) days (or, if earlier and if applicable to the Borrower, the annual
report deadline under the Exchange Act rules and regulations) after the
end of each fiscal year, beginning with the 2006 fiscal year, an audited
consolidated and unaudited consolidating balance sheet of the Borrower and its
Subsidiaries as of the end of such fiscal year and the related audited
consolidated and unaudited consolidating statements of income, cash flows and
stockholders’ equity for the Borrower and its Subsidiaries for the fiscal year
then ended, including the notes thereto, in each case setting forth comparative
figures as of the end of and for the preceding fiscal year together with
comparative budgeted figures for the fiscal year then ended, and, to the extent
audited, certified by Ernst & Young LLP or another independent
certified public accounting firm of recognized national standing reasonably
acceptable to the Administrative Agent, together with (y) a report thereon
by such accountants that is not qualified as to going concern or scope of audit
and to the effect that such audited financial statements present fairly in 

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all material respects the consolidated financial condition and results
of operations of the Borrower and its Subsidiaries as of the dates and for the
periods indicated in accordance with GAAP applied on a basis consistent with
that of the preceding year or containing disclosure of the effect on the
financial condition or results of operations of any change in the application
of accounting principles and practices during such year, and (z) a report
by such accountants to the effect that, based on and in connection with their
examination of the financial statements of the Borrower and its Subsidiaries,
they obtained no knowledge of the occurrence or existence of any Default or
Event of Default relating to any of the covenants contained in Article VII of this Agreement, or a statement
specifying the nature and period of existence of any such Default or Event of
Default disclosed by their audit.

6.2           Other
Business and Financial Information. The Borrower will deliver to the
Administrative Agent and each Lender:

(a)           Concurrently
with each delivery of the financial statements described in Sections 6.1(a) (including with respect to
financial statements as of the end of and for the fourth fiscal quarter of each
fiscal year) and 6.1(b), a Compliance Certificate
with respect to the period covered by the financial statements being delivered
thereunder, executed on behalf of the Borrower by a Financial Officer of the
Borrower, together with a Covenant Compliance Worksheet reflecting the
computation of the financial covenants set forth in Article VII
as of the last day of the period covered by such financial statements;

(b)           Within
thirty (30) days after the end of each fiscal year, beginning with the 2006
fiscal year, a consolidated operating budget for the Borrower and its
Subsidiaries for the succeeding fiscal year (prepared on a quarterly basis),
consisting of a consolidated balance sheet and consolidated statements of
income and cash flows, together with a certificate on behalf of the Borrower of
a Financial Officer of the Borrower to the effect that such budget has been
prepared in good faith and is a reasonable estimate of the financial position
and results of operations of the Borrower and its Subsidiaries for the period
covered thereby; and as soon as available from time to time thereafter, any
modifications or revisions to or restatements of such budget;

(c)           Promptly
upon receipt thereof, copies of any “management letter” submitted to the
Borrower or any of its Subsidiaries by its certified public accountants in
connection with each annual, interim or special audit, and promptly upon
completion thereof, any response reports from the Borrower or any such
Subsidiary in respect thereof;

(d)           Promptly
upon the sending, filing or receipt thereof, copies of (i) all financial
statements, reports, notices and proxy statements that any Credit Party shall
make available generally to its shareholders, (ii) all regular, periodic
and special reports, registration statements and prospectuses (other than on Form S-8)
that any Credit Party shall render to or file with the Securities and Exchange
Commission, the National Association of Securities Dealers, Inc. or any
national securities exchange, and (iii) all press releases and other
statements made available generally by any Credit Party to the public
concerning material developments in the business of the Credit Parties;

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(e)           Promptly
upon (and in any event within five (5) Business Days after) any
Responsible Officer of any Credit Party obtaining knowledge thereof, written
notice of any of the following:

(i)            the occurrence of
any Default or Event of Default, together with a written statement on behalf of
the Borrower of a Responsible Officer of the Borrower specifying the nature of
such Default or Event of Default, the period of existence thereof and the
action that the Borrower has taken and proposes to take with respect thereto;

(ii)           the institution or
threatened institution of any action, suit, investigation or proceeding against
or affecting the Borrower or any other Credit Party, including any such
investigation or proceeding by any Governmental Authority (other than routine
periodic inquiries, investigations or reviews), that would, if adversely
determined, be reasonably likely, individually or in the aggregate, to have a
Material Adverse Effect, and any material development in any litigation or
other proceeding previously reported pursuant to Section 5.5 or this Section 6.2(e)(ii);

(iii)          the receipt by the
Borrower or any other Credit Party from any Governmental Authority of (A) any
notice asserting any failure by any Credit Party to be in compliance with
applicable Requirements of Law or that threatens the taking of any action
against any Credit Party or sets forth circumstances that, if taken or
adversely determined, would be reasonably likely to have a Material Adverse
Effect, or (B) any notice of any actual or threatened suspension,
limitation or revocation of, failure to renew, or imposition of any restraining
order, escrow or impoundment of funds in connection with, any license, permit,
accreditation or authorization of any Credit Party, where such action would be
reasonably likely to have a Material Adverse Effect;

(iv)          the occurrence of
any ERISA Event, together with (x) a written statement of a Responsible
Officer of the Borrower specifying the details of such ERISA Event and the
action that the applicable Credit Party has taken and proposes to take with
respect thereto, (y) a copy of any notice with respect to such ERISA Event
that may be required to be filed with the PBGC and (z) a copy of any
notice delivered by the PBGC to any Credit Party or an ERISA Affiliate with
respect to such ERISA Event;

(v)           the occurrence of
any of the following: (x) the assertion of any Environmental Claim against
or affecting any Credit Party or any real property leased, operated or owned by
any Credit Party, or any Credit Party’s discovery of a basis for any such
Environmental Claim; (y) the receipt by any Credit Party of notice of any
alleged violation of or noncompliance with any Environmental Laws or release of
any Hazardous Substance; or (z) the taking of any investigation,
remediation or other responsive action by any Credit Party or any other Person
in response to the actual or alleged violation of any Environmental Law by any
Credit Party or generation, storage, transport, release, disposal or discharge
of any Hazardous Substances on, to, upon or from any real property leased,
operated or owned by any Credit Party; but in each case under clauses (x),
(y) and (z) above, only to the extent the same would be reasonably
likely to have a Material Adverse Effect; and

 

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(vi)          any other matter or
event that has, or would be reasonably likely to have, a Material Adverse
Effect, together with a written statement on behalf of the Borrower of a
Responsible Officer of the Borrower setting forth the nature and period of
existence thereof and the action that the affected Credit Parties have taken
and propose to take with respect thereto; and

(f)            As
promptly as reasonably possible, such other information about the business,
financial condition, operations or properties of the Borrower or any other
Credit Party (including any Plan and any information required to be filed under
ERISA) as the Administrative Agent or any Lender may from time to time
reasonably request.

Documents
required to be delivered pursuant to Section 6.2(d) (to
the extent any such documents are included in materials otherwise filed with
the Securities and Exchange Commission) may be delivered electronically and if
so delivered, shall be deemed to have been delivered on the date (i) on
which the Borrower posts such documents, or provides a link thereto on its
website on the Internet at the website address listed in Section 11.5(a)(i), or (ii) on
which such documents are posted on the Borrower’s behalf on an Internet or
intranet website, if any, to which each Lender and the Administrative Agent
have access (whether a commercial, third-party website or whether sponsored by
the Administrative Agent); provided that the Borrower shall notify the
Administrative Agent and each Lender (by telecopier or electronic mail) of the
posting of any such documents and provide to the Administrative Agent by
electronic mail electronic versions (i.e., soft copies) of such
documents.

6.3           Existence;
Franchises; Maintenance of Properties. The Borrower will, and will cause
each of its Subsidiaries to, (i) maintain and preserve in full force and
effect its legal existence, except as expressly permitted otherwise by Section 8.1, (ii) obtain,
maintain and preserve in full force and effect all other rights, franchises,
licenses, permits, certifications, approvals and authorizations required by
Governmental Authorities and necessary to the ownership, occupation or use of
its properties or the conduct of its business, except to the extent the failure
to do so would not be reasonably likely to have a Material Adverse Effect, and (iii) keep
all material properties in good working order and condition (normal wear and
tear and damage by casualty excepted) and from time to time make all necessary
repairs to and renewals and replacements of such properties, except to the
extent that any of such properties are obsolete or are being replaced or, in
the good faith judgment of the Borrower, are no longer useful or desirable in
the conduct of the business of the Borrower or its Subsidiaries.

6.4           Compliance
with Laws. The Borrower will, and will cause each of its Subsidiaries to,
comply in all respects with all Requirements of Law applicable in respect of
the conduct of its business and the ownership and operation of its properties,
except to the extent the failure so to comply would not be reasonably likely to
have a Material Adverse Effect.

6.5           Payment
of Obligations. The Borrower will, and will cause each of its Subsidiaries
to, (i) pay, discharge or otherwise satisfy at or before maturity all
liabilities and obligations as and when due (subject to any applicable
subordination, grace and notice provisions), except to the extent failure to do
so would not be reasonably likely to have a Material Adverse Effect, and (ii) pay
and discharge all taxes, assessments and governmental charges or levies imposed
upon it, upon its income or profits or upon any of its properties, prior 

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to the date on which penalties would attach thereto, and all lawful
claims that, if unpaid, would become a Lien upon any of the properties of any
Credit Party; provided, however, that no Credit Party shall be
required to pay any such unsecured tax, assessment, charge, levy or claim (x) that
is being contested in good faith and by proper proceedings and as to which such
Credit Party is maintaining adequate reserves with respect thereto in
accordance with GAAP, or (y) except where the failure so to pay would be
reasonably likely to have a Material Adverse Effect.

6.6           Insurance.
The Borrower will, and will cause each of its Subsidiaries to, maintain with
financially sound and reputable insurance companies insurance with respect to
its assets, properties and business, against such hazards and liabilities, of
such types and in such amounts, as is customarily maintained by companies in
the same or similar businesses similarly situated (including at least
$10,000,000 in business interruption insurance), and maintain such other or
additional insurance on such terms and subject to such conditions as may be
required under any Security Document.

6.7           Maintenance
of Books and Records; Inspection. The Borrower will, and will cause each of
its Subsidiaries to, (i) maintain books, accounts and records in which
entries (which shall be true and correct in all material respects) shall be
made of all financial transactions in relation to its business and properties
sufficient to permit the preparation of all financial statements required under
this Agreement in accordance with GAAP and in compliance with the requirements
of any Governmental Authority having jurisdiction over it, and (ii) permit
employees or agents of the Administrative Agent or any Lender to visit and
inspect its properties and examine or audit its books, records, working papers
and accounts and make copies and memoranda of them, and to discuss its affairs,
finances and accounts with its officers and employees and, upon notice to the
Borrower, the independent public accountants of the Borrower and its
Subsidiaries (and by this provision the Borrower authorizes such accountants to
discuss the finances and affairs of the Borrower and its Subsidiaries, provided
that the Borrower shall be entitled to be present at any such discussions), all
at such times and from time to time, upon reasonable notice and during business
hours, as may be reasonably requested; provided that no Credit Party
shall be required to disclose (a) any materials subject to a
confidentiality obligation binding upon it (but provided  further
that such Credit Party shall, at the request of the Administrative Agent or any
Lender, use commercially reasonable efforts to obtain permission for such
disclosure and, in the event permission cannot be obtained, furnish such
information regarding the matters to which such materials relate as can
reasonably be furnished without violation of such confidentiality obligation)
or (b) any communications protected by attorney-client privilege the
disclosure or inspection of which, based on a written opinion of counsel to the
Borrower reasonably acceptable to the Administrative Agent, would waive such
privilege.

6.8           Permitted
Acquisitions. In addition to the requirements contained in the definition
of Permitted Acquisition and in the other applicable terms and conditions of
this Agreement, the Borrower shall, with respect to any Permitted Acquisition,
comply with, and cause each other applicable Credit Party to comply with, the
following covenants:

(a)           Not
less than ten (10) Business Days prior to the consummation of any
Permitted Acquisition, the Borrower shall have delivered to the Administrative
Agent and each Lender the following (but with respect to any Permitted
Acquisition having a Total Acquisition Amount less than $10,000,000, only the certificate and
supporting calculations described in clause (v) below):

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(i)            a reasonably
detailed description of the material terms of such Permitted Acquisition
(including, without limitation, the purchase price and method and structure of
payment) and of each Person or business that is the subject of such Permitted
Acquisition (each, a “Target”);

(ii)           historical
financial statements of the Target (or, if there are two or more Targets that
are the subject of such Permitted Acquisition and that are part of the same
consolidated group, consolidated historical financial statements for all such
Targets) for the two (2) most recent fiscal years available and, if
available, for any interim periods since the most recent fiscal year-end
prepared by a firm of independent certified public accountants reasonably
acceptable to the Administrative Agent;

(iii)          consolidated
projected income statements of the Borrower and its Subsidiaries (giving effect
to such Permitted Acquisition and the consolidation with the Borrower of each
relevant Target) for the twelve-month period following the consummation of such
Permitted Acquisition, in reasonable detail, together with any appropriate
statement of assumptions and pro forma adjustments;

(iv)          with respect to any
such Permitted Acquisition in which any Contingent Purchase Price Obligations
or Seller Subordinated Indebtedness shall be incurred by the Borrower or any of
its Subsidiaries, a copy of the most recent draft of the acquisition agreement
(including schedules and exhibits thereto, to the extent available) and other
material documents (including the documentation evidencing such Contingent Purchase
Price Obligations or Seller Subordinated Indebtedness); and

(v)           a certificate, in
form reasonably satisfactory to the Administrative Agent, executed by a
Financial Officer of the Borrower on behalf of the Borrower setting forth the
Total Acquisition Amount (including the calculation of any Contingent Purchase
Price GAAP Amount constituting part of such Total Acquisition Amount and any
Contingent Purchase Price Reserve Amount associated with such Permitted
Acquisition) and further to the effect that, to the best of such Financial
Officer’s knowledge, (x) the consummation of such Permitted Acquisition
will not result in a violation of any provision of this Section 6.8 or any other provision of this Agreement,
and after giving effect to such Permitted Acquisition and any Borrowings made
in connection therewith, the Borrower will be in compliance with the financial
covenants contained in Article VII,
such compliance determined with regard to calculations made on a pro forma
basis for the Reference Period most recently ended, calculated in accordance
with GAAP as if each such Target had been consolidated with the Borrower for
those periods applicable to such covenants (such calculations to be attached to
the certificate using the Covenant Compliance Worksheet), (y) the Borrower
believes in good faith that it will continue to comply with such financial
covenants for a period of one year following the date of the consummation of
such Permitted Acquisition, and (z) after giving effect to such Permitted
Acquisition and any Borrowings in connection therewith, the Borrower believes
in good faith that the Borrower will have sufficient availability under the
Revolving Credit Commitments to meet its ongoing working capital requirements.

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(b)           As
soon as reasonably practicable after the consummation of any Permitted
Acquisition, the Borrower will deliver to the Administrative Agent and each
Lender true and correct copies of the fully executed acquisition agreement
(including schedules and exhibits thereto) and other material documents and
closing papers delivered in connection therewith, together with (in the case of
any Permitted Acquisition having a Total Acquisition Amount less than
$10,000,000, the items described in clauses (i) and (ii) of Section 6.8(a).

(c)           The
consummation of each Permitted Acquisition shall be deemed to be a
representation and warranty by the Borrower that (except as shall have been
approved in writing by the Required Lenders) all conditions thereto set forth
in this Section 6.8
and in the description furnished under Section 6.8(a)(i) have
been satisfied, that the same is permitted in accordance with the terms of this
Agreement, and that the matters certified to by the Financial Officer of the
Borrower on behalf of the Borrower in the certificate referred to in Section 6.8(a)(v) are, to the best of such
Financial Officer’s knowledge, true and correct in all material respects as of
the date such certificate is given, which representation and warranty shall be
deemed to be a representation and warranty as of the date thereof for all
purposes hereunder, including, without limitation, for purposes of Sections 4.2 and 9.1.

6.9           Creation
or Acquisition of Subsidiaries. Subject to the provisions of Section 8.5, the Borrower may from
time to time create or acquire new Wholly Owned Subsidiaries in connection with
Permitted Acquisitions or otherwise, and the Wholly Owned Subsidiaries of the
Borrower may create or acquire new Wholly Owned Subsidiaries, provided
that:

(a)           Concurrently
with (and in any event within fifteen (15) calendar days after) the creation or
direct or indirect acquisition by the Borrower thereof, each such new
Subsidiary will execute and deliver to the Administrative Agent (i) a
joinder to the Subsidiary Guaranty, pursuant to which such new Subsidiary shall
become a guarantor thereunder and shall guarantee the payment in full of the
Obligations of the Borrower under this Agreement and the other Credit
Documents, and (ii) a joinder to the Security Agreement, pursuant to which
such new Subsidiary shall become a party thereto and shall grant to the
Administrative Agent, for the benefit of the Lenders, a first priority Lien
upon and security interest in its accounts receivable, inventory, equipment,
general intangibles and other personal property as Collateral for its
obligations under the Subsidiary Guaranty, subject only to Permitted Liens;

(b)           Concurrently
with (and in any event within thirty (30) calendar days after) the creation or
acquisition of any new Subsidiary all or a portion of the Capital Stock of
which is directly owned by the Borrower, the Borrower will execute and deliver
to the Administrative Agent an amendment or supplement to the Pledge Agreement
pursuant to which all of the Capital Stock of such new Subsidiary owned by the
Borrower shall be pledged to the Administrative Agent, for the benefit of the
Lenders, together with the certificates evidencing such Capital Stock and
undated stock powers duly executed in blank; and concurrently with (and in any
event within thirty (30) calendar days after) the creation or acquisition of
any new Subsidiary all or a portion of the Capital Stock of which is directly
owned by another Subsidiary, the parent Subsidiary will execute and deliver to
the Administrative Agent an appropriate joinder, amendment or supplement to the
Pledge Agreement, pursuant to which all of the Capital Stock of such new
Subsidiary owned by such parent Subsidiary shall be pledged to the 

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Administrative Agent, for the benefit of the Lenders, together with the
certificates evidencing such Capital Stock and undated stock powers duly
executed in blank;

 

(c)           Concurrently
with (and in any event within thirty (30) calendar days thereafter) the
creation or acquisition of any new Subsidiary, the Borrower will deliver to the
Administrative Agent:

(i)            a written legal
opinion of counsel to such new Subsidiary (the “New Guarantor”)
addressed to the Administrative Agent and the Lenders in form and substance
satisfactory to the Administrative Agent and its counsel, which shall cover
such matters relating to such New Guarantor and the creation or acquisition
thereof incident to the transactions contemplated by this Agreement and this Section 6.9 and the other Credit Documents as set forth
in the legal opinion of counsel delivered to the Administrative Agent and the
Lenders on the Closing Date;

(ii)           (A) a copy of
the certificate of incorporation (or other charter documents) of such New
Guarantor certified as of a date that is acceptable to the Administrative Agent
by the applicable Governmental Authority of the jurisdiction of incorporation
or organization of such New Guarantor, (B) a copy of the bylaws or similar
organizational document of such New Guarantor certified on behalf of such New
Guarantor as of a date that is acceptable to the Administrative Agent by the
corporate secretary or assistant secretary of such New Guarantor, (C) an
original certificate of good standing for such New Guarantor issued by the
applicable Governmental Authority of the jurisdiction of incorporation or
organization of such New Guarantor and (D) copies of the resolutions of
the Board of Directors and, if required, stockholders or other equity owners of
such New Guarantor authorizing the execution, delivery and performance of the
agreements, documents and instruments executed pursuant to Sections 6.9(a) and 6.9(b),
certified on behalf of such New Guarantor by an Authorized Officer of such New
Guarantor, all in form and substance reasonably acceptable to the
Administrative Agent;

(iii)          a report of Uniform
Commercial Code financing statement, tax and judgment lien searches performed
against such New Guarantor in each jurisdiction in which such New Guarantor is
incorporated or organized, has a place of business or keeps any material
property, which report shall show no Liens on such property (other than
Permitted Liens);

(iv)          a certificate on
behalf of such New Guarantor of the corporate secretary or assistant secretary
of such New Guarantor as to the incumbency and signature of the officers
executing agreements, documents and instruments executed pursuant to Sections 6.9(a) and 6.9(b);

(v)           a Solvency
Certificate for such New Guarantor, addressed to the Administrative Agent and
the Lenders dated as of the date of creation or acquisition of such New
Guarantor;

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(vi)          evidence reasonably
satisfactory to the Administrative Agent that no Default or Event of Default
shall exist immediately before or after the creation or acquisition of such New
Guarantor or be caused thereby; and

(vii)         a certificate
executed on behalf of the Borrower and such New Guarantor by an Authorized
Officer of each of the Borrower and such New Guarantor, which shall constitute
a representation and warranty by the Borrower and such New Guarantor as of the
date of the creation or acquisition of such New Guarantor that all conditions
contained in this Agreement to such creation or acquisition have been
satisfied, in form and substance reasonably acceptable to the Administrative
Agent.

(d)           As
promptly as reasonably possible, the Borrower and its Subsidiaries will deliver
any such other documents, certificates and opinions, in form and substance
reasonably satisfactory to the Administrative Agent, as the Administrative
Agent or the Required Lenders may reasonably request in connection therewith
and will take such other action as the Administrative Agent may reasonably
request to create in favor of the Administrative Agent, for the benefit of the
Lenders, a perfected security interest in the Collateral being pledged pursuant
to the documents described above;

provided
that, with respect to any Foreign Subsidiary, (i) the Capital Stock of
such Foreign Subsidiary will not be required to be pledged to the extent (but
only to the extent) that (x) such Foreign Subsidiary (together with its
direct and indirect Subsidiaries, on a consolidated basis) does not constitute
five percent (5%) of consolidated revenues or total assets of the Borrower and
its Subsidiaries, (y) such Foreign Subsidiary is a Subsidiary of a Foreign
Subsidiary or (z) such pledge exceeds sixty-five percent (65%) of the
voting Capital Stock of such Foreign Subsidiary, unless and to the extent that
the pledge of greater than sixty-five percent (65%) of the voting Capital Stock
of such Foreign Subsidiary would not cause any adverse tax consequences to the
Borrower, and (ii) such Foreign Subsidiary will not be required to become
a Subsidiary Guarantor if doing so would cause adverse tax consequences to the
Borrower; provided that if, at any time, all Foreign Subsidiaries that
are direct Subsidiaries of the Borrower or Domestic Subsidiaries and whose
Capital Stock is not pledged to the Administrative Agent represent at such time
(together with their respective direct and indirect Subsidiaries, on a
consolidated basis) fifteen percent (15%) or more of the of the consolidated
revenues or the total assets of the Borrower and its Subsidiaries taken as a
whole, then the Borrower shall pledge or cause to be pledged to the
Administrative Agent the Capital Stock of one or more such Foreign Subsidiaries
(but subject to the 65% limitation set forth above) to the extent necessary to
reduce such percentage below 15%.

6.10         Additional
Security. The Borrower will, and will cause each of its Subsidiaries to,
grant to the Administrative Agent, for the benefit of the Lenders, from time to
time security interests, Mortgages and other Liens in and upon such assets and
properties of the Borrower or such Subsidiary as are not covered by the
Security Documents executed and delivered on the Closing Date or pursuant to Section 6.9 and as may be reasonably
requested from time to time by the Required Lenders (including, without
limitation, Liens on real property owned or leased by the Borrower or any of
its Subsidiaries, and Liens on assets acquired by the Borrower or a Subsidiary
in connection with any Permitted Acquisition), but subject to the proviso at
the end of Section 6.9. Such
security interests, Mortgages and Liens shall be granted pursuant to 

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documentation in form and substance reasonably satisfactory to the
Administrative Agent and shall constitute valid and perfected security
interests and Liens, subject to no Liens other than Permitted Liens. Without
limitation of the foregoing, in connection with the grant of any Mortgage with
respect to any interest in real property, the Borrower will, and will cause
each applicable Subsidiary to, at the Borrower’s expense, prepare, obtain and
deliver to the Administrative Agent any environmental assessments, appraisals,
surveys, title insurance and other matters or documents as the Administrative
Agent may reasonably request or as may be required under applicable banking
laws and regulations.

6.11         Environmental
Laws.

(a)           The
Borrower will, and will cause each of its Subsidiaries to, comply in all
material respects with, and use commercially reasonable efforts to ensure
compliance in all material respects by all tenants and subtenants, if any,
with, all applicable Environmental Laws and obtain and comply in all material
respects with and maintain, and use commercially reasonable efforts to ensure
that all tenants and subtenants obtain and comply in all material respects with
and maintain, any and all licenses, approvals, notifications, registrations or
permits required by applicable Environmental Laws, except to the extent that
the failure to do so would not be reasonably likely to have a Material Adverse
Effect.

(b)           The
Borrower will, and will cause each of its Subsidiaries to, conduct and complete
all investigations, studies, sampling and testing, and all remedial, removal
and other actions, required under Environmental Laws and promptly comply in all
material respects with all lawful orders and directives of all Governmental
Authorities regarding Environmental Laws, except to the extent that the same
are being contested in good faith by appropriate proceedings or to the extent
the failure to conduct or complete any of the foregoing would not be reasonably
likely to have a Material Adverse Effect.

(c)           Without
limitation of the provisions of Section 6.7,
if the Administrative Agent or any Lender, in accordance with prudent banking
practices, has any reason to suspect a material failure by any Credit Party to
comply with the representations, warranties and covenants set forth herein
concerning Hazardous Substances and Environmental Laws, employees and/or agents
of the Administrative Agent may (but shall not be obligated to) enter upon any
Realty of such Credit Party (subject to the provisions of Section 6.7
with respect to notice and time of visit) to conduct such inspections and
tests, at the Borrower’s sole cost and expense, as may be reasonably desired by
the Administrative Agent or the Required Lenders to evaluate compliance with
Environmental Laws and presence of Hazardous Substances. If any such
inspections or tests reveal facts, conditions or circumstances that, in the
judgment of the Administrative Agent, need to be investigated, remediated or
otherwise addressed under applicable Environmental Laws, or if the
Administrative Agent or the Lenders otherwise learn of such facts, conditions
or circumstances, the Borrower agrees to undertake all responsive actions
required under applicable Environmental Laws. All costs of such actions shall
be paid by the Borrower. In the event that the Borrower shall fail to timely
prosecute to completion such work, the Administrative Agent may, but shall not
be required to, cause such work to be performed, and all reasonable costs and
expenses thereof shall become part of the Obligations. The Borrower hereby
acknowledges that all hazardous waste handling practices and environmental
practices and procedures are the sole responsibility of the Borrower and its
Subsidiaries. The Borrower further acknowledges that 

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neither the Administrative Agent nor any Lender is an environmental
consultant, engineer, investigator or inspector of any type whatsoever. No act
(or decision not to act) of the Administrative Agent or any Lender related to
this Agreement or any other Credit Document shall give rise to any obligation
or liability on the part of the Administrative Agent or any Lender with respect
to environmental matters. In no event shall any information obtained from the
Administrative Agent or any Lender or their respective employees,
representatives or agents pursuant to this Agreement or any other Credit
Document concerning the environmental condition of any Realty be considered by
the Borrower or any of its Subsidiaries (or any other recipient of such
information) as constituting legal or environmental consulting, engineering,
investigating or inspecting advice, and neither the Borrower nor any of its
Subsidiaries (nor any other recipient of such information) shall rely on such
information. The responsibility for compliance with environmental laws rests
solely with the Borrower and its Subsidiaries.

6.12         Further
Assurances. The Borrower will, and will cause each of its Subsidiaries to,
make, execute, endorse, acknowledge and deliver any amendments, modifications
or supplements hereto and restatements hereof and any other agreements,
instruments or documents, and take any and all such other actions, as may from
time to time be reasonably requested by the Administrative Agent or the
Required Lenders to perfect and maintain the validity and priority of the Liens
granted pursuant to the Security Documents and to effect, confirm or further assure
or protect and preserve the interests, rights and remedies of the
Administrative Agent and the Lenders under this Agreement and the other Credit
Documents.

6.13         Revisions
or Updates to Schedules. If any of the information or disclosures provided
on any of the schedules to this Agreement originally attached hereto become
outdated or incorrect in any material respect, the Borrower shall deliver to
the Administrative Agent and the Lenders as part of the Compliance Certificate
(or earlier if the Borrower so elects) such revisions or updates to such
schedules as may be necessary or appropriate to update or correct such
schedules, which revisions shall be effective from the date accepted in writing
by the Required Lenders (or the Administrative Agent on behalf of and with the
written consent of the Required Lenders) (other than with respect to updates of
Schedule 5.7), such
acceptance not to be unreasonably withheld or delayed; provided that no
such revisions or updates to any such schedules shall be deemed to have cured
any breach of warranty or misrepresentation occurring prior to the delivery of
such revision or update by reason of the inaccuracy or incompleteness of any
such schedules at the time such warranty or representation previously was made
or deemed to be made.

6.14         Post-Closing
Deliveries.

(a)           As
promptly as practicable, and in any event within fifteen (15) days after the
date hereof, the Borrower shall deliver to the Administrative Agent, a local
counsel to the Borrower in the State of Maine as to the matters reasonably
requested by the Administrative Agent and otherwise in form and substance
reasonably satisfactory to the Administrative Agent.

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ARTICLE
VII

FINANCIAL COVENANTS

The Borrower
covenants and agrees that, until the termination of the Commitments, the
termination or expiration of all Letters of Credit and the payment in full of
all principal and interest with respect to the Loans and all Reimbursement
Obligations together with all other amounts then due and owing hereunder (other
than contingent and indemnification obligations not then due and payable):

7.1           Total
Leverage Ratio. The Borrower will not permit the Total Leverage Ratio as of
the last day of any fiscal quarter, beginning with the second fiscal quarter of
fiscal year 2006, to be greater than 2.5:1.0.

7.2           Interest
Coverage Ratio. The Borrower will not permit the Interest Coverage Ratio as
of the last day of any fiscal quarter, beginning with the second fiscal quarter
of fiscal year 2006, to be less than 5.0:1.0.

7.3           Fixed
Charge Ratio. The Borrower will not permit the Fixed Charge Coverage Ratio
as of the last day of any fiscal quarter, beginning with the second fiscal
quarter of fiscal year 2006, to be less than 1.1:1.0.

ARTICLE
VIII

NEGATIVE COVENANTS

The Borrower
covenants and agrees that, until the termination of the Commitments, the
termination or expiration of all Letters of Credit and the payment in full of
all principal and interest with respect to the Loans and all Reimbursement
Obligations together with all other amounts then due and owing hereunder (other
than contingent and indemnification obligations not then due and payable):

8.1           Merger;
Consolidation. The Borrower will not, and will not permit or cause any of
its Subsidiaries to, liquidate, wind up or dissolve, or enter into any
consolidation, merger or other combination, or agree to do any of the
foregoing; provided, however, that:

(i)            any Wholly Owned
Subsidiary of the Borrower may merge or consolidate with any Subsidiary
Guarantor (provided that a Subsidiary Guarantor is the surviving
entity), or may be liquidated into a Subsidiary Guarantor, in each case provided
further that no Default or Event of Default shall have occurred and be
continuing or would result therefrom;

(ii)           any Wholly Owned
Subsidiary of the Borrower that is a Domestic Subsidiary may merge or
consolidate with another Person other than the Borrower, provided that (x) the
surviving entity is a Domestic Subsidiary and a Subsidiary Guarantor, (y) unless
such other Person is a Wholly Owned Subsidiary immediately prior to giving
effect thereto, such merger or consolidation shall constitute a Permitted
Acquisition and the applicable conditions and requirements of Sections 6.8 and 6.9 shall 

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be satisfied,
and (z) no Default or Event of Default shall have occurred and be
continuing or would result therefrom;

(iii)          any Wholly Owned
Subsidiary of the Borrower that is a Foreign Subsidiary may merge or
consolidate with any other Wholly Owned Subsidiary of the Borrower that is a
Foreign Subsidiary, provided that if either constituent corporation is a
Subsidiary Guarantor, the surviving entity shall be a Subsidiary Guarantor, and
provided  further that no Default or Event of Default shall have
occurred and be continuing or would result therefrom; and

(iv)          to the extent not
otherwise expressly permitted under the foregoing clauses, any Wholly Owned
Subsidiary that has sold, transferred or otherwise disposed of all or
substantially all of its assets in connection with an Asset Disposition
permitted under this Agreement and no longer conducts any active trade or
business may be liquidated, wound up and dissolved.

8.2           Indebtedness.
The Borrower will not, and will not permit or cause any of its Subsidiaries to,
create, incur, assume or suffer to exist any Indebtedness other than (without
duplication):

(i)            Indebtedness of the
Credit Parties in favor of the Administrative Agent and the Lenders incurred
under this Agreement and the other Credit Documents;

(ii)           accrued expenses
(including salaries, accrued vacation and other compensation), current trade or
other accounts payable and other current liabilities arising in the ordinary
course of business and not incurred through the borrowing of money, in each
case above to the extent constituting Indebtedness;

(iii)          purchase money Indebtedness
of the Borrower and its Subsidiaries incurred solely to finance the payment of
all or part of the purchase price of any equipment, real property or other
fixed assets acquired in the ordinary course of business, including
Indebtedness in respect of Capital Lease obligations, and any renewals,
refinancings or replacements thereof, provided that all such purchase
money Indebtedness shall not exceed $20,000,000 in aggregate principal amount
outstanding;

(iv)          unsecured loans and
advances (A) by the Borrower or any Subsidiary to any Domestic Subsidiary
Guarantor, (B) by any Subsidiary to the Borrower, or (C) by the
Borrower or any Subsidiary to any Subsidiary that is not a Domestic Subsidiary
Guarantor, provided that any such loan or advance is subordinated in
right and time of payment to the Obligations and is evidenced by a promissory
note, in form and substance reasonably satisfactory to the Administrative
Agent, pledged to the Administrative Agent pursuant to the Security Documents,
and provided further that all such loans and advances made pursuant to
clause (C) above to Subsidiaries (including Foreign Subsidiaries)
that are not Domestic Subsidiary Guarantors shall be subject to the limitations
on Investments set forth in Section 8.5
(including, without limitation, the limitations on Investments in Foreign
Subsidiaries set forth in Section 8.5(xi));

 

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(v)           Indebtedness of the
Borrower under Hedge Agreements entered into in the ordinary course of business
and not for speculative purposes;

(vi)          Indebtedness
existing on the Closing Date and described in Schedule 8.2 and any renewals, refinancings or extensions
of any such Indebtedness, so long as the principal amount thereof is not
increased to an amount exceeding the principal amount thereof outstanding as of
the date of such renewal, refinancing or extension and the terms thereof, taken
as a whole, are not made materially less favorable to the respective obligors;

(vii)         Indebtedness
consisting of Guaranty Obligations of the Borrower or any of its Subsidiaries
incurred in the ordinary course of business for the benefit of another Credit
Party, provided that the primary obligation being guaranteed is
expressly permitted by this Agreement, and provided that this
clause (vii) shall not permit any guarantee by the Borrower or any
Domestic Subsidiary of the Foreign Working Capital Facility or any other
Indebtedness of any Foreign Subsidiary;

(viii)        unsecured
Indebtedness issued after the Closing Date by
the Borrower or any of its Subsidiaries to sellers in connection with Permitted
Acquisitions (excluding Indebtedness consisting of Contingent Purchase Price
Obligations), in an aggregate principal amount not exceeding $15,000,000
outstanding at any time, provided that such Indebtedness (A) shall
not mature or require any scheduled payment of principal at any time prior to
the first anniversary of the later of the Term A Loan Maturity Date, the Term A-1
Loan Maturity Date or the Revolving Credit Maturity Date, (B) is fully
subordinated in right and time of payment to the Obligations on terms and
conditions acceptable to the Administrative Agent, (C) shall have covenants
and undertakings that, taken as a whole, are materially less restrictive than
those contained herein and shall not be cross-defaulted to this Agreement (but
may be cross-accelerated) and (D) is otherwise on terms and conditions
acceptable to, and in a form approved in writing by, the Administrative Agent,
and provided further that no Indebtedness (excluding Indebtedness
consisting of Contingent Purchase Price Obligations) to sellers in connection
with Permitted Acquisitions shall be incurred except on the terms described in
this paragraph (the Indebtedness described in this paragraph, “Seller
Subordinated Indebtedness”);

(ix)           Indebtedness that
may be deemed to exist pursuant to any performance bond, surety, statutory
appeal or similar obligation entered into or incurred by the Borrower or any of
its Subsidiaries in the ordinary course of business;

(x)            Indebtedness of the
Borrower and its Subsidiaries consisting of deposit overdraft lines of credit,
not exceeding $500,000 in aggregate principal amount outstanding at any time;

(xi)           Indebtedness of the
Borrower and its Subsidiaries arising under agreements providing for
indemnification, adjustment of purchase price or similar obligations in
connection with Permitted Acquisitions or Asset Dispositions permitted
hereunder;

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(xii)          unsecured
Indebtedness consisting of Contingent Purchase Price Obligations of the
Borrower and its Subsidiaries (including Contingent Purchase Price Obligations
set forth on Schedule 8.2)
to the extent that the aggregate Contingent Purchase Price Reserve Amounts do
not exceed $10,000,000 at any one time;

(xiii)         Indebtedness
incurred or assumed after the Closing Date by the Borrower or any of its
Subsidiaries pursuant to a Permitted Acquisition, which Indebtedness (A) is
unsecured or, if secured, is secured only by property, plant and equipment of
the acquired business or Person in existence at the time of such Permitted
Acquisition (and in any event, shall not be owing to or secured in favor of any
seller in such Permitted Acquisition), (B) was in existence at the time of
such Permitted Acquisition and was not incurred in contemplation or
anticipation of such Permitted Acquisition, and (C) does not exceed
$5,000,000 in aggregate principal amount outstanding at any time;

(xiv)        Guaranty Obligations
in the form of Investments permitted under Section 8.5;

(xv)         a Foreign Working
Capital Facility not exceeding £8,000,000 (or, in the event of a conversion of
Pounds Sterling to Euro, an equivalent amount in Euro determined as of the date
of conversion) in aggregate principal amount outstanding at any time (and in no
event to exceed the equivalent of US $24,000,000 in aggregate principal amount outstanding at any time,
based on the spot rate of exchange as determined by the Administrative Agent in
accordance with customary market practice), and any Guaranty Obligations of
Foreign Subsidiaries of Mettis in respect thereof; and

(xvi)        other unsecured
Indebtedness of the Borrower and its Subsidiaries not exceeding $10,000,000 in
aggregate principal amount outstanding at any time; provided that the
aggregate principal amount of Indebtedness of Foreign Subsidiaries incurred
pursuant to this Section 8.2(xvi)
outstanding at any time shall not exceed $5,000,000.

8.3           Liens.
The Borrower will not, and will not permit or cause any of its Subsidiaries to,
directly or indirectly, make, create, incur, assume or suffer to exist, any
Lien upon or with respect to any part of its property or assets, whether now
owned or hereafter acquired, or file or permit the filing of, or permit to
remain in effect, any financing statement or other similar notice of any Lien
with respect to any such property, asset, income or profits under the Uniform
Commercial Code of any state or under any similar recording or notice statute,
or agree to do any of the foregoing, other than the following (collectively, “Permitted
Liens”):

(i)            Liens in favor of
the Administrative Agent and the Lenders created by or otherwise existing under
or in connection with this Agreement and the other Credit Documents;

(ii)           Liens in existence
on the Closing Date and set forth on Schedule 8.3;

(iii)          Liens imposed by
law, such as Liens of carriers, warehousemen, mechanics, materialmen and
landlords, and other similar Liens imposed by law or incurred pursuant to
customary reservations or retentions of title (including contractual Liens in
favor of sellers and suppliers of goods) incurred in the ordinary course of 

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business for
sums not constituting borrowed money that are not overdue for a period of more
than sixty (60) days or that are being contested in good faith by appropriate
proceedings and for which adequate reserves have been established in accordance
with GAAP (if so required);

(iv)          Liens (other than
any Lien imposed by ERISA, the creation or incurrence of which would result in
an Event of Default under Section 9.1(j))
incurred in the ordinary course of business in connection with worker’s
compensation, unemployment insurance or other forms of governmental insurance
or benefits, or to secure the performance of letters of credit, bids, tenders,
statutory obligations, surety and appeal bonds, leases, public or statutory
obligations, government contracts, contractual or warranty requirements, and
other similar obligations (other than obligations for borrowed money) entered
into in the ordinary course of business, including obligations under insurance
or self-insurance arrangements;

(v)           Liens for taxes,
assessments or other governmental charges or statutory obligations that are not
delinquent or remain payable without any penalty or that are being contested in
good faith by appropriate proceedings and for which adequate reserves have been
established in accordance with GAAP (if so required);

(vi)          any attachment or
judgment Lien not constituting an Event of Default under Section 9.1(h) that is being contested in good
faith by appropriate proceedings and for which adequate reserves have been
established in accordance with GAAP;

(vii)         Liens (I) securing
the Indebtedness permitted under Section 8.2(iii),
provided that (a) any such Lien shall attach to the property
acquired with such Indebtedness concurrently with or within ninety (90) days
after the acquisition or the refinancing thereof by the Borrower or such
Subsidiary, (b) the amount of the Indebtedness secured by such Lien shall
not exceed the lesser of (y) the fair market value of the property
acquired with such Indebtedness at the time of such acquisition and (z) the
cost thereof to the Borrower or such Subsidiary and (c) any such Lien
shall not encumber any other property of the Borrower or any of its
Subsidiaries, and (II) on property, plant and equipment of an acquired
business or Person securing Indebtedness permitted under, and on the terms set
forth in, Section 8.2(xiii);

(viii)        customary security
deposits under operating leases entered into by the Borrower and its
Subsidiaries in the ordinary course of business;

(ix)           customary rights of
set-off, revocation, refund or chargeback under deposit agreements or under the
Uniform Commercial Code of banks or other financial institutions where the
Borrower or any of its Subsidiaries maintains deposits (other than deposits
intended as cash collateral) in the ordinary course of business;

(x)            Liens arising from
the filing, for notice purposes only, of UCC-1 financing statements (or
equivalent filings, registrations or agreements in foreign jurisdictions) in
respect of true leases otherwise permitted hereunder;

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(xi)           with respect to any
Realty occupied by the Borrower or any of its Subsidiaries, (a) all
easements (including, without limitation, reciprocal easement agreements and
utility agreements), rights of way, covenants, consents, reservations,
licenses, encroachments, variations and similar restrictions, charges and
encumbrances on title (including Liens in the nature of municipal ordinances,
zoning, entitlement, land use and environmental regulations) that do not
materially impair the use of such property for its intended purposes or the
value thereof, and (b) any other Lien or exception to coverage described
in mortgagee policies of title insurance issued in favor of and accepted by the
Administrative Agent;

(xii)          Liens in favor of
customs and revenue authorities arising as a matter of law to secure
nondelinquent customs duties in connection with the importation of goods;

(xiii)         Liens that arise in
favor of banks under Article 4 of the Uniform Commercial Code on items in
collection and the documents relating thereto and proceeds thereof;

(xiv)        Liens with respect to
cash deposits held in escrow in connection with Permitted Acquisitions;

(xv)         Liens deemed to exist
in connection with investments in repurchase agreements meeting the
requirements of Cash Equivalents;

(xvi)        any leases,
subleases, licenses or sublicenses granted by the Borrower or any of its
Subsidiaries to third parties in the ordinary course of business and not
interfering in any material respect with the business of the Borrower and its
Subsidiaries, and any interest or title of a lessor, sublessor, licensor or
sublicensor under any lease or license permitted under this Agreement;

(xvii)       Liens consisting of
contractual obligations of any Credit Party to sell or otherwise dispose of
assets (provided that such sale or disposition is permitted under Section 8.4);

(xviii)      other Liens securing
obligations not exceeding $2,500,000 in aggregate principal amount outstanding
at any time;

(xix)         Liens securing
Indebtedness of Mettis and any of its Foreign Subsidiaries permitted under the
Foreign Working Capital Facility (which Liens shall encumber only assets of
Mettis and such Foreign Subsidiaries); and

(xx)          any extension,
renewal or replacement (or successive extensions, renewals or replacements), in
whole or in part, of any Lien referred to in the foregoing clauses; provided
that any such extension, renewal or replacement Lien shall be limited to all or
a part of the property that secured the Lien so extended, renewed or replaced
(plus any improvements on such property).

8.4           Disposition
of Assets. The Borrower will not, and will not permit or cause any of its
Subsidiaries to, sell, assign, lease, convey, transfer or otherwise dispose of
(whether in one or 

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a series of transactions)
all or any portion of its assets, business or properties (including, without
limitation, any Capital Stock of any of its Subsidiaries), or agree to do any
of the foregoing, except for:

(i)            sales, transfers,
leases, licenses or other dispositions of inventory, materials and other
property and assets (including intellectual property), in each case in the
ordinary course of business;

(ii)           the sale, exchange
or other disposition of Cash Equivalents in the ordinary course of business;

(iii)          the sale, lease or
other disposition of assets by the Borrower or any Subsidiary of the Borrower
to the Borrower or to a Domestic Subsidiary Guarantor (or by any Foreign
Subsidiary to another Foreign Subsidiary, provided that no Foreign
Subsidiary that is a Subsidiary Guarantor may sell, lease or otherwise dispose
of any assets to a Foreign Subsidiary that is not a Subsidiary Guarantor
pursuant to this clause (iii)), in each case so long as no Event of
Default shall have occurred and be continuing or would result therefrom;

(iv)          the sale, exchange
or other disposition in the ordinary course of business of equipment or other
capital assets no longer used or useful in the business of the Borrower and its
Subsidiaries;

(v)           the sale or
disposition of assets (other than the Capital Stock of Subsidiaries) outside
the ordinary course of business for fair value and for cash, provided
that (x) the aggregate amount of Net Cash Proceeds from all such sales or
dispositions that are consummated during any Reference Period shall not exceed
$2,000,000 (and the aggregate amount of Net Cash Proceeds from all such sales
or dispositions that are consummated by Foreign Subsidiaries during any
Reference Period shall not exceed $1,000,000), (y) if such sale or
disposition shall be an “Asset Disposition” hereunder, such Net Cash Proceeds
shall be reinvested or applied to the prepayment of the Loans in accordance
with the provisions of Section 2.6(g),
and (z) no Default or Event of Default shall have occurred and be
continuing or would result therefrom; and

(vi)          any merger,
consolidation or other transaction expressly permitted under Section 8.1.

8.5           Investments.
The Borrower will not, and will not permit or cause any of its Subsidiaries to,
directly or indirectly, purchase, own, invest in or otherwise acquire any
Capital Stock, evidence of indebtedness or other obligation or security or any
interest whatsoever in any other Person, or make or permit to exist any loans,
advances or extensions of credit to, or any investment in cash or by delivery
of property in, any other Person, or purchase or otherwise acquire (whether in
one or a series of related transactions) any portion of the assets, business or
properties of another Person (including pursuant to an Acquisition), or create
or acquire any Subsidiary, or become a partner or joint venturer in any
partnership or joint venture (collectively, “Investments”), or make a
commitment or otherwise agree to do any of the foregoing, other than:

(i)            Investments
consisting of cash and Cash Equivalents;

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(ii)           Investments
consisting of the creation of accounts receivable, purchases and acquisitions
of inventory, supplies, materials and equipment or licenses or leases of
intellectual property and other assets, in each case in the ordinary course of
business,

(iii)          Investments
consisting of (w) loans and advances to employees of the Borrower and its
Subsidiaries for reasonable travel, relocation and business expenses in the
ordinary course of business not exceeding $750,000 at any time outstanding, (x) cash
loans and advances to employees of the Borrower and its Subsidiaries for the
purchase of Capital Stock of the Borrower not exceeding $750,000 at any time
outstanding, (y) accounts receivable of the Borrower and its Subsidiaries
created or acquired in the ordinary course of business, and (z) prepaid
expenses of the Borrower and its Subsidiaries incurred in the ordinary course
of business;

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

(v)           without duplication,
Investments consisting of intercompany Indebtedness permitted under Section 8.2(iv);

(vi)          Investments existing
as of the Closing Date and described in Schedule 8.5;

(vii)         Investments of the
Borrower under Hedge Agreements entered into in the ordinary course of business
and not for speculative purposes;

(viii)        Investments in
Domestic Subsidiaries, which Domestic Subsidiaries are Subsidiary Guarantors;

(ix)           Investments made
prior to the date hereof in Foreign Subsidiaries existing as of the date
hereof, provided that nothing in this paragraph shall permit any
Investments made after the date hereof in such Foreign Subsidiaries;

(x)            Investments
consisting of the making of capital contributions or the purchase of Capital
Stock (y) by the Borrower or any Subsidiary in any other newly created or
acquired Wholly Owned Subsidiary that is (or immediately after giving effect to
such Investment will be) a Domestic Subsidiary Guarantor; provided that
the Borrower complies with the provisions of Section 6.9, and (z) by any Subsidiary in the
Borrower;

(xi)           Investments in
Foreign Subsidiaries (including, without limitation (but without duplication),
capital contributions made to any Foreign Subsidiary, loans made to any Foreign
Subsidiary (including loans and advances to Foreign Subsidiaries made pursuant
to Section 8.2(iv)),
and Guaranty Obligations with respect to obligations of any such Foreign
Subsidiary) made after the date hereof in an aggregate amount, as valued at the
time each such Investment is made, not exceeding $10,000,000 for all such
Investments from and after the Closing Date; provided that:

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(A)          the aggregate
permitted amount for all such Investments shall increase to $15,000,000 upon
delivery pursuant to Section 6.2(a) of
Compliance Certificates indicating a Total Leverage Ratio of less than 1.75 to
1.0 as of the last day of two consecutive four-quarter Reference Periods (but provided
further that in the event the Total Leverage Ratio should equal or
exceed 1.75 to 1.0 as of the last day of any fiscal period at any time
thereafter, the aggregate permitted amount for all such Investments pursuant to
this Section 8.5(xi) shall
automatically be reduced to $10,000,000 (plus any such Investments pursuant to
this Section 8.5(xi) outstanding at the
time of reduction to the extent in excess of $10,000,000, but only to the
extent of such excess));

(B)           the aggregate
permitted amount for all such Investments shall increase to $20,000,000 upon
delivery pursuant to Section 6.2(a) of
Compliance Certificates indicating a Total Leverage Ratio of less than 1.5 to
1.0 as of the last day of two consecutive four-quarter Reference Periods (but provided
further that in the event the Total Leverage Ratio should equal or
exceed 1.5 to 1.0 or 1.75 to 1.0 as of the last day of any fiscal period at any
time thereafter, the aggregate permitted amount for all such Investments
pursuant to this Section 8.5(xi) shall
automatically be reduced to $15,000,000 or $10,000,000, respectively (plus any
such Investments pursuant to this Section 8.5(xi) outstanding
at the time of reduction to the extent in excess of $15,000,000 or $10,000,000,
respectively, but only to the extent of such excess));

(C)           the aggregate
permitted amount for all such Investments shall increase to $25,000,000 upon
delivery pursuant to Section 6.2(a) of
Compliance Certificates indicating a Total Leverage Ratio of less than 1.0 to
1.0 as of the last day of two consecutive four-quarter Reference Periods (but provided
further that in the event the Total Leverage Ratio should equal or
exceed 1.0 to 1.0, 1.5 to 1.0 or 1.75 to 1.0 as of the last day of any fiscal
period at any time thereafter, the aggregate permitted amount for all such
Investments pursuant to this Section 8.5(xi)
shall automatically be reduced to $20,000,000, $15,000,000 or $10,000,000,
respectively (plus any such Investments pursuant to this Section 8.5(xi)
outstanding at the time of reduction to the extent in excess of
$20,000,000, $15,000,000 or $10,000,000, respectively, but only to the extent
of such excess)); and

(D)          notwithstanding the
foregoing, no Investments may be made under this Section 8.5(xi) if a Default or Event of Default
has occurred and is continuing or would result therefrom;

(xii)          Permitted
Acquisitions; and

(xiii)         other Investments
not otherwise permitted under this Section 8.5
(including joint ventures, but excluding Investments in Foreign Subsidiaries)
in an aggregate amount, as valued at the time each such Investment is made, not
exceeding $2,000,000 for all such Investments from and after the Closing Date.

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8.6           Restricted
Payments.

(a)           The
Borrower will not, and will not permit or cause any of its Subsidiaries to,
directly or indirectly, declare or make any dividend payment, or make any other
distribution of cash, property or assets, in respect of any of its Capital
Stock or any warrants, rights or options to acquire its Capital Stock, or
purchase, redeem, retire or otherwise acquire for value any shares of its
Capital Stock or any warrants, rights or options to acquire its Capital Stock
(collectively, “Restricted Payments”), or set aside funds for any of the
foregoing, except that:

(i)            the Borrower and
any of its Subsidiaries may declare and make dividend payments or other
distributions payable solely in its Common Stock;

(ii)           each Subsidiary of
the Borrower may declare and make dividend payments or other distributions to
the Borrower or to a Wholly Owned Subsidiary of the Borrower that is a
Subsidiary Guarantor, or (if such declaring Subsidiary is a Foreign Subsidiary)
to another Wholly Owned Foreign Subsidiary, in each case to the extent not
prohibited under applicable Requirements of Law;

(iii)          so long as no
Default or Event of Default shall have occurred and be continuing or would result
therefrom, the Borrower may purchase, redeem, retire or otherwise acquire
warrants to acquire shares of its Capital Stock, in an aggregate cash amount
not exceeding $1,000,000 for all such purchases, redemptions, retirements and
acquisitions during any fiscal year; and

(iv)          the Borrower may
make any Restricted Payment in an amount that, taken together with the
aggregate of all other Restricted Payments made by the Borrower and its
Subsidiaries (other than Restricted Payments permitted under Sections 8.6(a)(i) and 8.6(a)(ii), but including Restricted Payments
permitted under Section 8.6(a)(iii))
from and after the Closing Date, is
less than 50% of Consolidated Net Income for the period (taken as one
accounting period) from the beginning of the first fiscal quarter commencing
after the Closing Date to the end of the Borrower’s most recently ended fiscal
quarter for which the Borrower has delivered financial statements as required
by Sections 6.1(a) or 6.1(b), as the case may be, and the Compliance Certificate
as required by Section 6.2(a), provided
that:

(A)          no Default or Event
of Default shall have occurred and be continuing or would result from such
Restricted Payment;

(B)           after giving effect
to such Restricted Payment, the Borrower shall be in compliance with the Fixed
Charge Coverage Ratio set forth in Section 7.3,
such compliance determined with regard to calculations made on a pro forma
basis for the Reference Period most recently ended, calculated in accordance
with GAAP as if such Restricted Payment had been made at the beginning of such
Reference Period; and

(C)           after giving effect
to such Restricted Payment, the Total Leverage Ratio (calculated on a pro forma
basis as set forth above after giving effect to such Restricted Payment) shall
not exceed 1.5 to 1.0.

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(b)           The
Borrower will not, and will not permit or cause any of its Subsidiaries to,
make (or give any notice in respect of) any payment or prepayment of principal
on, or interest, fees or premium (if any) with respect to any Subordinated Indebtedness,
or directly or indirectly make any redemption (including pursuant to any change
of control or asset disposition provision), retirement, defeasance or other
acquisition for value of any Subordinated Indebtedness, or make any deposit or
otherwise set aside funds for any of the foregoing purposes; provided, however,
that, subject to the provisions of Section 8.6(c), the Borrower and its Subsidiaries may
make required principal and interest payments on any Seller Subordinated
Indebtedness incurred or issued pursuant to (and in accordance with the terms
of) Section 8.2(viii) and any
Subordinated Indebtedness existing on the Closing Date and described in Schedule 8.2,
in each case in accordance with the terms of such Indebtedness (including any
subordination provisions thereof).

(c)           The
Borrower will not, and will not permit any of its Subsidiaries to, make any
payment in respect of any Contingent Purchase Price Obligations (whether or not
such Contingent Purchase Price Obligations constitute Indebtedness) or Seller
Subordinated Indebtedness unless, immediately after giving effect to such
payment, the Borrower shall be in compliance with the financial covenants
contained in Article VII,
such compliance determined with regard to calculations made on a pro forma
basis for the Reference Period most recently ended, calculated in accordance
with GAAP as if such payment had been made on the last day of such Reference
Period, and the Administrative Agent has received a certificate on behalf of
the Borrower of a Financial Officer of the Borrower to such effect.

8.7           Transactions
with Affiliates. The Borrower will not, and will not permit or cause any of
its Subsidiaries to, enter into any transaction (including, without limitation,
any purchase, sale, lease or exchange of property or the rendering of any
service) with any officer, director, stockholder or other Affiliate of the
Borrower or any of its Subsidiaries, except in the ordinary course of its
business and upon fair and reasonable terms that are no less favorable to it
than it would obtain in a comparable arm’s length transaction with a Person
other than an Affiliate of the Borrower or any of its Subsidiaries; provided,
however, that nothing contained in this Section 8.7 shall prohibit:

(i)            transactions
described on Schedule 8.7
or otherwise expressly permitted under this Agreement;

(ii)           transactions among
the Borrower and its Wholly Owned Subsidiaries (provided that such
transactions shall remain subject to any other applicable limitations and
restrictions set forth in this Agreement); and

(iii)          the payment by the
Borrower of reasonable and customary fees to members of its boards of directors
(such fees not to exceed, in any event, $500,000 during any fiscal year) and
the payment and provision of compensation and benefits to its directors and
officers relating to their employment.

8.8           Lines
of Business. The Borrower will not, and will not permit or cause any of its
Subsidiaries to, engage in any lines of business other than the businesses
engaged in by it and its Subsidiaries on the Closing Date and businesses and
activities reasonably related thereto. All 

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references in this Agreement and the other Credit Documents to “in the
ordinary course of business” shall mean only in the ordinary course of those
businesses permitted by this Section 8.8.

8.9           Sale-Leaseback
Transactions. Except for transactions otherwise expressly permitted under
this Agreement, and except as permitted by Section 8.2(iii),
the Borrower will not, and will not permit or cause any of its Subsidiaries to,
directly or indirectly, become or remain liable as lessee or as guarantor or
other surety with respect to any lease, whether an operating lease or a Capital
Lease, of any property (whether real, personal or mixed, and whether now owned
or hereafter acquired) (i) that any Credit Party has sold or transferred
(or is to sell or transfer) to a Person that is not a Credit Party or (ii) that
any Credit Party intends to use for substantially the same purpose as any other
property that, in connection with such lease, has been sold or transferred (or
is to be sold or transferred) by a Credit Party to another Person that is not a
Credit Party.

8.10         Certain
Amendments. The Borrower will not, and will not permit or cause any of its
Subsidiaries to, (i) amend, modify or waive, or permit the amendment,
modification or waiver of, any provision of any Subordinated Indebtedness, the
effect of which would be (a) to increase the principal amount due
thereunder or provide for any mandatory prepayments not already provided for by
the terms thereof, (b) to shorten or accelerate the time of payment of any
amount due thereunder (to the extent such modification would cause any such
Subordinated Indebtedness to become due within one year after the due date for
repayment of any of the Obligations), (c) to increase the applicable
interest rate (to the extent payable in cash) or amount of any fees or costs
due thereunder, (d) to amend any of the subordination provisions
thereunder (including any of the definitions relating thereto), (e) to
make any covenant or event of default therein more restrictive or add any new
covenant or event of default, (f) to grant any security or collateral to
secure payment thereof, or (g) to effect any change in the rights or
obligations of the Credit Parties thereunder or of the holders thereof that, in
the reasonable determination of the Administrative Agent, would be adverse in
any material respect to the rights or interests of the Lenders, (ii) breach
or otherwise violate any of the subordination provisions applicable to any
Subordinated Indebtedness, including, without limitation, restrictions against
payment of principal and interest thereon, or (iii) amend, modify or
change any provision of its articles or certificate of incorporation or formation,
bylaws, partnership agreement, operating agreement or other applicable
formation or organizational documents, as applicable, the terms of any class or
series of its Capital Stock other than in a manner that could not reasonably be
expected to adversely affect the Lenders in any material respect (provided
that the Borrower shall give the Administrative Agent and the Lenders notice of
any such amendment, modification or change that is material, together with
copies thereof).

8.11         Limitation
on Certain Restrictions. The Borrower will not, and will not permit or
cause any of its Subsidiaries to, directly or indirectly, create or otherwise
cause or suffer to exist or become effective any restriction or encumbrance on (a) the
ability of Borrower and any such Subsidiaries to perform and comply with their
respective obligations under the Credit Documents or (b) the ability of
any Subsidiary of the Borrower to make any dividend payment or other
distribution in respect of its Capital Stock, to repay Indebtedness owed to the
Borrower or any other Subsidiary, to make loans or advances to the Borrower or
any other Subsidiary, or to transfer any of its assets or properties to the
Borrower or any other Subsidiary, in each case other

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than such restrictions or
encumbrances existing under or by reason of (i) this Agreement and the
other Credit Documents, (ii) applicable Requirements of Law, (iii) customary
non-assignment provisions in operating leases and licenses of real or personal
property (including intellectual property) entered into by the Borrower or any
of its Subsidiaries as lessee or licensee in the ordinary course of business,
and (iv) as to clause (b) above only, the Foreign Working
Capital Facility (but only with respect to the Foreign Subsidiary obligors
thereunder, and then only to the extent that any such restrictions could not
reasonably be expected to materially impair the ability of the Borrower to
perform its obligations under this Agreement).

8.12         No
Other Negative Pledges. The Borrower will not, and will not permit or cause
any of its Subsidiaries to, enter into or suffer to exist any agreement or
restriction that, directly or indirectly, prohibits or conditions the creation,
incurrence or assumption of any Lien upon or with respect to any part of its
property or assets, whether now owned or hereafter acquired, or agree to do any
of the foregoing, other than as set forth in (i) this Agreement and the
other Credit Documents, (ii) any agreement or instrument creating a Permitted
Lien, including the Foreign Working Capital Facility (but only to the extent
such agreement or restriction applies to the assets subject to such Permitted
Lien), and (iii) operating leases and licenses of real or personal
property entered into by the Borrower or any of its Subsidiaries as lessee or
licensee in the ordinary course of business.

8.13         Fiscal
Year. The Borrower will not, and will not permit or cause any of its
Subsidiaries to, change the ending date of its fiscal year to a date other than
the Saturday closest to December 31.

8.14         Accounting
Changes. Other than as permitted pursuant to Section 1.2, the Borrower will not, and will not permit
or cause any of its Subsidiaries to, make or permit any material change in its
accounting policies or reporting practices, except (i) as may be required
by GAAP (or, in the case of Foreign Subsidiaries, generally accepted accounting
principles in the jurisdiction of its organization) or (ii) as the
Borrower’s independent auditor may recommend and as reasonably consented to by
the Required Lenders.

8.15         Ownership
of Subsidiaries. The Borrower will not, and will not permit or cause any of
its Subsidiaries to, have any Subsidiaries of the Borrower other than Wholly
Owned Subsidiaries.

ARTICLE
IX

EVENTS OF DEFAULT

9.1           Events
of Default. The occurrence of any one or more of the following events shall
constitute an “Event of Default”:

(a)           The
Borrower shall fail to pay when due (i) any principal of any Loan or any
Reimbursement Obligation, or (ii) any interest on any Loan, any fee
payable under this Agreement or any other Credit Document, or (except as
provided in clause (i) above) any other Obligation (other than any
Obligation under a Hedge Agreement), and (in the case of this clause (ii) only)
such failure shall continue for a period of three (3) Business Days;

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(b)           The
Borrower or any other Credit Party shall fail to observe, perform or comply
with any condition, covenant or agreement contained in any of Sections 2.14, 6.1, 6.2(e)(i),
6.3(i), 6.8 or 6.9 or in Articles VII
or VIII;

(c)           The
Borrower or any other Credit Party shall fail to observe, perform or comply
with any condition, covenant or agreement contained in this Agreement or any of
the other Credit Documents other than those enumerated in Sections 9.1(a) and 9.1(b),
or any default or event of default shall occur under any Hedge Agreement to
which the Borrower and any Lender or Affiliate of any Lender are parties, and
such failure (i) by the express terms of the relevant Credit Document,
constitutes an Event of Default, or (ii) shall continue unremedied for any
grace period specifically applicable thereto or, if no such grace period is
applicable, for a period of thirty (30) days after the earlier of (y) the
date on which a Responsible Officer of the Borrower acquires knowledge thereof
and (z) the date on which written notice thereof is delivered by the
Administrative Agent or any Lender to the Borrower;

(d)           Any
representation or warranty made or deemed made by or on behalf of the Borrower
or any other Credit Party in this Agreement, any of the other Credit Documents
or in any certificate, instrument, report or other document furnished at any
time in connection herewith or therewith shall prove to have been incorrect,
false or misleading in any material respect as of the time made, deemed made or
furnished;

(e)           The
Borrower or any other Credit Party shall (i) fail to pay when due (whether
by scheduled maturity, acceleration or otherwise and after giving effect to any
applicable grace period or notice provisions) (y) any principal of or
interest on any Indebtedness (other than the Indebtedness incurred pursuant to
this Agreement or a Hedge Agreement) having an aggregate principal amount of at
least $2,000,000 or (z) any termination or other payment under any Hedge
Agreement covering a notional amount of Indebtedness of at least $2,000,000 or (ii) fail
to observe, perform or comply with any condition, covenant or agreement
contained in any agreement or instrument evidencing or relating to any such
Indebtedness, or any other event shall occur or condition exist in respect
thereof, and the effect of such failure, event or condition is to cause, or
permit the holder or holders of such Indebtedness (or a trustee or agent on its
or their behalf) to cause (with or without the giving of notice, lapse of time,
or both), without regard to any subordination terms with respect thereto, such
Indebtedness to become due, or to be prepaid, redeemed, purchased or defeased,
prior to its stated maturity;

(f)            The
Borrower or any other Credit Party shall (i) file a voluntary petition or
commence a voluntary case seeking liquidation, winding-up, reorganization,
dissolution, arrangement, readjustment of debts or any other relief under the
Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar
law now or hereafter in effect, (ii) consent to the institution of, or
fail to controvert in a timely and appropriate manner, any petition or case of
the type described in Section 9.1(g),
(iii) apply for or consent to the appointment of or taking possession by a
custodian, trustee, receiver or similar official for or of itself or all or a
substantial part of its properties or assets, (iv) fail generally, or
admit in writing its inability, to pay its debts generally as they become due, (v) make
a general assignment for the benefit of creditors or (vi) take any
corporate action to authorize or approve any of the foregoing;

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(g)           Any
involuntary petition or case shall be filed or commenced against the Borrower
or any other Credit Party seeking liquidation, winding-up, reorganization,
dissolution, arrangement, readjustment of debts, the appointment of a
custodian, trustee, receiver or similar official for it or all or a substantial
part of its properties or any other relief under the Bankruptcy Code or under
any other applicable bankruptcy, insolvency or similar law now or hereafter in
effect, and such petition or case shall continue undismissed and unstayed for a
period of sixty (60) days; or an order, judgment or decree approving or
ordering any of the foregoing shall be entered in any such proceeding;

(h)           Any
one or more money judgments, writs or warrants of attachment, executions or
similar processes involving an aggregate amount (to the extent not paid when
due, exclusive of amounts fully bonded or covered by insurance or for which the
Borrower or any other Credit Party is indemnified in a manner reasonably
satisfactory to the Administrative Agent) in excess of $1,000,000 shall be
entered or filed against the Borrower or any other Credit Party or any of their
respective properties and the same shall not be paid, dismissed, bonded,
vacated, stayed or discharged within a period of thirty (30) days or in any
event later than five (5) days prior to the date of any proposed sale of such
property thereunder;

(i)            Any
Security Document to which the Borrower or any other Credit Party is now or
hereafter a party shall for any reason cease to be in full force and effect or
cease to be effective to give the Administrative Agent a valid and perfected
security interest in and Lien upon the Collateral purported to be covered
thereby, subject to no Liens other than Permitted Liens, in each case unless
any such cessation occurs in accordance with the terms thereof or is due to any
act or failure to act on the part of the Administrative Agent or any Lender, or
the Borrower or any other Credit Party shall assert any of the foregoing; or
the Subsidiary Guaranty shall for any reason cease to be in full force and
effect as to any Subsidiary Guarantor, or any Subsidiary Guarantor or any
Person acting on its behalf shall deny or disaffirm such Subsidiary Guarantor’s
obligations thereunder;

(j)            Any
ERISA Event or any other event or condition shall occur or exist with respect
to any Plan or Multiemployer Plan and, as a result thereof, together with all
other ERISA Events and other events or conditions then existing, any Credit
Party and its ERISA Affiliates have incurred, or would be reasonably likely to
incur liability to any one or more Plans or Multiemployer Plans or to the PBGC
(or to any combination thereof) in excess of $2,000,000;

(k)           Any
one or more licenses, permits, accreditations or authorizations of the Borrower
or any other Credit Party shall be suspended, limited or terminated or shall
not be renewed, or any other action shall be taken, by any Governmental
Authority in response to any alleged failure by the Borrower or any other
Credit Party to be in compliance with applicable Requirements of Law, and such
action, individually or in the aggregate, would be reasonably likely to have a
Material Adverse Effect;

(l)            Any
one or more Environmental Claims shall have been asserted against the Borrower
or any other Credit Party (or a reasonable basis shall exist therefor) or the
Borrower or any other Credit Party shall have incurred or would be reasonably
likely to incur liability, interruption of operations or other adverse effects
as a result thereof, and such Environmental 

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Claims, liability or other effect, individually or in the aggregate,
has or would be reasonably likely to have a Material Adverse Effect; or

(m)          (A) any
Person or group of Persons acting in concert as a partnership or other group
shall have become, as a result of a tender or exchange offer, open market
purchases, privately negotiated purchases or otherwise, the beneficial owner of
outstanding Capital Stock of the Borrower having 35% or more of the Total
Voting Power of the Borrower, or (B) during any period of up to twelve
(12) consecutive months, individuals on the Board of Directors of the Borrower
(together with any new directors whose election by such Board of Directors was
approved by a vote of 66-2/3% of the directors then still in office who
were either directors at the beginning of such period or whose election or
nomination for election was previously so approved) shall cease to consist of a
majority of the individuals who constituted the Board of Directors at the
beginning of such period.

9.2           Remedies:  Termination of Commitments, Acceleration, etc.
Upon and at any time after the occurrence and during the continuance of any
Event of Default, the Administrative Agent shall at the direction, or may with
the consent, of the Required Lenders, take any or all of the following actions
at the same or different times:

(a)           Declare
the Commitments, the Swingline Commitment, and the Issuing Lender’s obligation
to issue Letters of Credit, to be terminated, whereupon the same shall
terminate; provided that, upon the occurrence of a Bankruptcy Event, the
Commitments, the Swingline Commitment and the Issuing Lender’s obligation to
issue Letters of Credit shall automatically be terminated;

(b)           Declare
all or any part of the outstanding principal amount of the Loans to be
immediately due and payable, whereupon the principal amount so declared to be
immediately due and payable, together with all interest accrued thereon and all
other amounts payable under this Agreement, the Notes and the other Credit
Documents (but excluding any amounts owing under any Hedge Agreement), shall
become immediately due and payable without presentment, demand, protest, notice
of intent to accelerate or other notice or legal process of any kind, all of
which are hereby knowingly and expressly waived by the Borrower; provided
that, upon the occurrence of a Bankruptcy Event, all of the outstanding
principal amount of the Loans and all other amounts described in this Section 9.2(b) shall automatically become
immediately due and payable without presentment, demand, protest, notice of
intent to accelerate or other notice or legal process of any kind, all of which
are hereby knowingly and expressly waived by the Borrower;

(c)           Direct
the Borrower to deposit (and the Borrower hereby agrees, forthwith upon receipt
of notice of such direction from the Administrative Agent, to deposit) with the
Administrative Agent from time to time such additional amount of cash as is
equal to the aggregate Stated Amount of all Letters of Credit then outstanding
(whether or not any beneficiary under any Letter of Credit shall have drawn or
be entitled at such time to draw thereunder), such amount to be held by the
Administrative Agent in the Cash Collateral Account as security for the Letter
of Credit Exposure as described in Section 3.8;

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(d)           Appoint or direct the appointment of a receiver
for the properties and assets of the Credit Parties, both to operate and to
sell such properties and assets, and the Borrower, for itself and on behalf of
its Subsidiaries, hereby consents to such right and such appointment and hereby
waives any objection the Borrower or any Subsidiary may have thereto or the
right to have a bond or other security posted by the Administrative Agent on
behalf of the Lenders, in connection therewith; and

(e)           Exercise
all rights and remedies available to it under this Agreement, the other Credit
Documents and applicable law.

9.3           Remedies:  Set-Off. In addition to all other rights
and remedies available under the Credit Documents or applicable law or
otherwise, upon and at any time after the occurrence and during the continuance
of any Event of Default, each Lender may, and each is hereby authorized by the
Borrower, at any such time and from time to time, to the fullest extent
permitted by applicable law, without presentment, demand, protest or other
notice of any kind, all of which are hereby knowingly and expressly waived by
the Borrower (on behalf of itself and the other Credit Parties) to set off and
to apply any and all deposits (general or special, time or demand, provisional
or final) and any other property at any time held (including at any branches or
agencies, wherever located), and any other indebtedness at any time owing, by
such Lender to or for the credit or the account of the Borrower or any other
Credit Party against any or all of the Obligations to such Lender now or hereafter
existing, whether or not such Obligations may be contingent or unmatured, the
Borrower (on behalf of itself and the other Credit Parties) hereby granting to
each Lender a continuing security interest in and Lien upon all such deposits
and other property as security for such Obligations. Each Lender agrees
promptly to notify the Borrower and the Administrative Agent after any such
set-off and application; provided, however, that the failure to
give such notice shall not affect the validity of such set-off and application.

ARTICLE X

THE ADMINISTRATIVE
AGENT

10.1         Appointment.
Each Lender hereby irrevocably appoints and authorizes Wachovia to act as
Administrative Agent hereunder and under the other Credit Documents and to take
such actions as agent on its behalf hereunder and under the other Credit
Documents, and to exercise such powers and to perform such duties, as are
specifically delegated to the Administrative Agent by the terms hereof or
thereof, together with such other powers and duties as are reasonably
incidental thereto.

10.2         Nature
of Duties.

(a)           The
Administrative Agent shall have no duties or responsibilities other than those
expressly set forth in this Agreement and the other Credit Documents. The
Administrative Agent shall not have, by reason of this Agreement or any other
Credit Document, a fiduciary relationship in respect of any Lender or any other
Person; and nothing in this Agreement or any 

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other Credit Document, express or implied, is intended to or shall be
so construed as to impose upon the Administrative Agent any obligations or
liabilities in respect of this Agreement or any other Credit Document except as
expressly set forth herein or therein. The Administrative Agent may execute any
of its duties under this Agreement or any other Credit Document by or through
agents or attorneys-in-fact and shall not be responsible for the negligence or
misconduct of any agents or attorneys-in-fact that it selects with reasonable
care. The Administrative Agent shall be entitled to consult with legal counsel,
independent public accountants and other experts selected by it with respect to
all matters pertaining to this Agreement and the other Credit Documents and its
duties hereunder and thereunder and shall not be liable for any action taken or
omitted to be taken in good faith by it in accordance with the advice of such
counsel, accountants or experts. The Lenders hereby acknowledge that the
Administrative Agent shall not be under any duty to take any discretionary
action permitted to be taken by it pursuant to the provisions of this Agreement
or any other Credit Document unless it shall be requested in writing to do so
by the Required Lenders (or, where a higher percentage of the Lenders is
expressly required hereunder, such Lenders).

(b)           The
Borrower hereby designates the Administrative Agent to serve as the Borrower’s
agent, solely for purposes of this Section 10.2(b),
to maintain the Register pursuant to the terms of Section 11.7(b).

10.3         Exculpatory
Provisions. Neither the Administrative Agent nor any of its officers,
directors, employees, agents, attorneys-in-fact or Affiliates shall be (i) liable
for any action taken or omitted to be taken by it or such Person under or in
connection with the Credit Documents, except for its or such Person’s own gross
negligence, bad faith or willful misconduct, (ii) responsible in any
manner to any Lender or any other Person for any recitals, statements,
information, representations or warranties herein or in any other Credit
Document or in any document, instrument, certificate, report or other writing
delivered in connection herewith or therewith, for the execution,
effectiveness, genuineness, validity, enforceability or sufficiency of this
Agreement or any other Credit Document, or for the financial condition of the
Borrower, any other Credit Party or any other Person, or (iii) required to
ascertain or make any inquiry concerning the performance or observance of any
of the terms, provisions or conditions (other than delivery of the documents
specified in Section 4.1) of
this Agreement or any other Credit Document or the existence or possible
existence of any Default or Event of Default, or to inspect the properties,
books or records of the Borrower or any other Credit Party.

10.4         Reliance
by Administrative Agent. The Administrative Agent shall be entitled to
rely, and shall be fully protected in relying, upon any notice, statement,
consent or other communication (including, without limitation, any thereof by
telephone, telecopy, telex, telegram or cable) believed by it in good faith to
be genuine and correct and to have been signed, sent or made by the proper
Person or Persons. The Administrative Agent may deem and treat each Lender as
the owner of its interest hereunder for all purposes hereof unless and until a
written notice of the assignment, negotiation or transfer thereof shall have
been given to the Administrative Agent in accordance with the provisions of
this Agreement. The Administrative Agent shall be entitled to refrain from
taking or omitting to take any action in connection with this Agreement or any
other Credit Document (i) if such action or omission would, in the
reasonable opinion of the Administrative Agent, violate any applicable law or
any provision of this Agreement or any other Credit Document or (ii) unless
and until it shall have received such advice or concurrence of the Required
Lenders (or, where a higher percentage of the Lenders is expressly required
hereunder, such Lenders) as it deems appropriate, if it so requests, or it
shall 

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first have been indemnified to its satisfaction by the Lenders against
any and all liability and expense (other than liability and expense arising
from its own gross negligence or willful misconduct) that may be incurred by it
by reason of taking, continuing to take or omitting to take any such action. Without
limiting the foregoing, no Lender shall have any right of action whatsoever
against the Administrative Agent as a result of the Administrative Agent’s
acting or refraining from acting hereunder or under any other Credit Document
in accordance with the instructions of the Required Lenders (or, where a higher
percentage of the Lenders is expressly required hereunder, such Lenders), and
such instructions and any action taken or failure to act pursuant thereto shall
be binding upon all of the Lenders (including all subsequent Lenders).

10.5         Non-Reliance
on Administrative Agent and Other Lenders. Each Lender expressly
acknowledges that neither the Administrative Agent nor any of its officers,
directors, employees, agents, attorneys-in-fact or Affiliates has made any
representation or warranty to it and that no act by the Administrative Agent or
any such Person hereinafter taken, including any review of the affairs of the
Borrower and the other Credit Parties, shall be deemed to constitute any
representation or warranty by the Administrative Agent to any Lender. Each
Lender represents to the Administrative Agent that (i) 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 appraisal of and investigation into the business,
prospects, operations, properties, financial and other condition and
creditworthiness of the Borrower and the other Credit Parties and made its own
decision to enter into this Agreement and extend credit to the Borrower
hereunder, and (ii) it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action
hereunder and under the other Credit Documents and to make such investigation
as it deems necessary to inform itself as to the business, prospects,
operations, properties, financial and other condition and creditworthiness of
the Borrower and the other Credit Parties. Except as expressly provided in this
Agreement and the other Credit Documents, the Administrative Agent shall have
no duty or responsibility, either initially or on a continuing basis, to
provide any Lender with any credit or other information concerning the
business, prospects, operations, properties, financial or other condition or
creditworthiness of the Borrower, the other Credit Parties or any other Person
that may at any time come into the possession of the Administrative Agent or
any of its officers, directors, employees, agents, attorneys-in-fact or
Affiliates.

10.6         Notice
of Default. The Administrative Agent shall not be deemed to have knowledge
or notice of the occurrence of any Default or Event of Default, unless (i) a
Default or Event of Default in the payment of principal, interest or fees
hereunder required to be paid to the Administrative Agent shall have occurred
or (ii) the Administrative Agent shall have received written notice from
the Borrower or a Lender referring to this Agreement, describing such Default
or Event of Default and stating that such notice is a “notice of default.”  In the event that any such payment Default or
Event of Default occurs or the Administrative Agent receives such a notice, the
Administrative Agent will give notice thereof to the Lenders as soon as
reasonably practicable; provided, however, that if any such
notice has also been furnished to the Lenders, the Administrative Agent shall
have no obligation to notify the Lenders with respect thereto. The
Administrative Agent shall (subject to Sections 10.4
and 11.6) take such action with
respect to such Default or Event of Default as shall reasonably be directed by
the Required Lenders; 

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provided that, unless and until the
Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it
shall deem advisable in the best interests of the Lenders except to the extent
that this Agreement expressly requires that such action be taken, or not be
taken, only with the consent or upon the authorization of the Required Lenders
or all of the Lenders.

10.7         Indemnification.
To the extent the Administrative Agent is not reimbursed by or on behalf of the
Borrower, and without limiting the obligation of the Borrower to do so, the
Lenders agree (i) to indemnify the Administrative Agent and its officers,
directors, employees, agents, attorneys-in-fact and Affiliates, ratably in
proportion to their respective percentages as used in determining the Required
Lenders as of the date of determination, from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses (including, without limitation, reasonable attorneys’
fees and expenses) or disbursements of any kind or nature whatsoever that may
at any time (including, without limitation, at any time following the repayment
in full of the Loans and the termination of the Letters of Credit and the
Commitments) be imposed on, incurred by or asserted against the Administrative
Agent in any way relating to or arising out of this Agreement or any other
Credit Document or any documents contemplated by or referred to herein or the
transactions contemplated hereby or thereby or any action taken or omitted by
the Administrative Agent under or in connection with any of the foregoing, and (ii) to
reimburse the Administrative Agent upon demand, ratably in proportion to their
respective percentages as used in determining the Required Lenders as of the
date of determination, for any reasonable expenses incurred by the
Administrative Agent in connection with the preparation, negotiation,
execution, delivery, administration, amendment, modification, waiver or
enforcement (whether through negotiations, legal proceedings or otherwise) of,
or legal advice in respect of rights or responsibilities under, this Agreement
or any of the other Credit Documents (including, without limitation, reasonable
attorneys’ fees and expenses and compensation of agents and employees paid for
services rendered on behalf of the Administrative Agent hereunder and/or the
Lenders); provided, however, that no Lender shall be liable for
any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements to the extent
resulting from the gross negligence, bad faith or willful misconduct of the
party to be indemnified or from a material breach of such indemnified party’s
obligations or duties hereunder or under any other Credit Document.

10.8         The
Administrative Agent in its Individual Capacity. With respect to its
Commitments, the Loans made by it, the Letters of Credit issued or participated
in by it and the Note or Notes issued to it, the Administrative Agent in its
individual capacity and not as Administrative Agent shall have the same rights
and powers under the Credit Documents as any other Lender and may exercise the
same as though it were not performing the agency duties specified herein; and
the terms “Lenders,” “Required Lenders,” “holders of Notes” and any similar
terms shall, unless the context clearly otherwise indicates, include the
Administrative Agent in its individual capacity. The Administrative Agent and
its Affiliates may accept deposits from, lend money to, make investments in,
and generally engage in any kind of banking, trust, financial advisory or other
business with the Borrower, any of its Subsidiaries or any of their respective
Affiliates as if the Administrative Agent were not performing the agency duties
specified herein, and may accept fees and other consideration from any of them
for services in 

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connection with this Agreement and otherwise without having to account
for the same to the Lenders.

10.9         Successor
Administrative Agent. The Administrative Agent may resign at any time by
giving thirty (30) days’ prior written notice to the Borrower and the Lenders. Upon
any such notice of resignation, the Required Lenders shall, with the prior
written consent of the Borrower (which consent shall not be unreasonably
withheld), have the right to appoint a successor to the Administrative Agent (provided
that the Borrower’s consent shall not be required in the event a Default or
Event of Default shall have occurred and be continuing). If no successor to the
Administrative Agent shall have been so appointed by the Required Lenders and
shall have accepted such appointment within such thirty-day period, then the
retiring Administrative Agent may, on behalf of the Lenders and after
consulting with the Lenders and the Borrower, appoint a successor Administrative
Agent, which shall be a financial institution having a rating of not less than “A”
or its equivalent by Standard & Poor’s Ratings Services or any of the
Lenders. Upon the acceptance of any appointment as Administrative Agent by a
successor Administrative Agent, such successor Administrative Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the retiring Administrative Agent, and the retiring
Administrative Agent shall be discharged from its duties and obligations
hereunder and under the other Credit Documents. After any retiring
Administrative Agent’s resignation as Administrative Agent, the provisions of
this Article X shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent. If no successor to the Administrative Agent has accepted
appointment as Administrative Agent by the thirtieth (30th) day following a
retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become
effective, and the Lenders shall thereafter perform all of the duties of the
Administrative Agent hereunder and under the other Credit Documents until such
time, if any, as the Required Lenders appoint a successor Administrative Agent
as provided for hereinabove.

10.10       Collateral
Matters.

(a)           The
Administrative Agent is hereby authorized on behalf of the Lenders, without the
necessity of any notice to or further consent from the Lenders, from time to
time (but without any obligation) to take any action with respect to the
Collateral and the Security Documents that may be deemed by the Administrative
Agent in its discretion to be necessary or advisable to perfect and maintain
perfected the Liens upon the Collateral granted pursuant to the Security
Documents.

(b)           The
Lenders hereby authorize the Administrative Agent, at its option and in its
discretion, to release any Lien granted to or held by the Administrative Agent
upon any Collateral (i) upon termination of the Commitments, termination,
expiration or cash collateralization of all outstanding Letters of Credit and
payment in full of all of the Obligations then due and payable, (ii) constituting
property sold or to be sold or disposed of as part of or in connection with any
disposition expressly permitted hereunder or under any other Credit Document or
to which the Required Lenders have consented or (iii) otherwise pursuant
to and in accordance with the provisions of any applicable Credit Document. Upon
request by the Administrative Agent at any time, the Lenders will confirm in
writing the Administrative Agent’s authority to release Collateral pursuant to
this Section 10.10(b).

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10.11       Issuing
Lender and Swingline Lender. The provisions of this Article X
(other than Sections 10.9 and 10.10) shall apply to the Issuing Lender and the Swingline
Lender mutatis  mutandis to the same extent as such provisions
apply to the Administrative Agent.

10.12       Other
Agents, Managers. Notwithstanding any other provision of this Agreement or
any of the other Credit Documents, any Lenders identified on the cover page of
this Agreement or elsewhere herein as a “Syndication Agent,” “Documentation
Agent,” “Co-Agent,” “Lead Manager” or in any similar capacity are named as such
for recognition purposes only, and in their respective capacities as such shall
have no powers, rights, duties, responsibilities or liabilities with respect to
this Agreement and the other Credit Documents and the transactions contemplated
hereby and thereby. Without limitation of the foregoing, none of the Lenders so
identified shall have, by reason of this Agreement or any other Credit
Document, a fiduciary relationship in respect of any Lender or any other Person.
Each Lender hereby makes the same acknowledgments with respect to any Lenders
so identified as it makes in Section 10.5
with respect to the Administrative Agent.

ARTICLE
XI

MISCELLANEOUS

11.1         Fees
and Expenses. The Borrower agrees (i) whether or not the transactions
contemplated by this Agreement shall be consummated, to pay upon demand all
reasonable out-of-pocket costs and expenses of the Administrative Agent and the
Arranger (including, without limitation, the reasonable fees and out-of-pocket
expenses of counsel to the Administrative Agent and the Arranger) in connection
with (w) the preparation, negotiation, execution, delivery and syndication
of the Engagement Letter, this Agreement and the other Credit Documents and (if
requested by the Borrower) any amendment, modification or waiver hereof or
thereof or consent with respect hereto or thereto, (x) the engagement of
appraisers, consultants, auditors or similar Persons by the Administrative
Agent at any time to render opinions concerning the Credit Parties’ financial
condition and the value of the Collateral (provided that only two such
engagements per year shall be at the Borrower’s expense, unless an Event of
Default shall have occurred and be continuing, in which case all such
engagements during the continuance of such Event of Default shall be at the Borrower’s
expense), (y) after the occurrence and during the continuance of an Event
of Default, any attempt to inspect, verify, protect, collect, sell, liquidate
or otherwise dispose of any Collateral and (z) the creation, perfection
and maintenance of the perfection of the Administrative Agent’s Liens upon the
Collateral, including, without limitation, Lien search, filing and recording
fees, (ii) after the occurrence and during the continuance of an Event of
Default, to pay upon demand all out-of-pocket costs and expenses of the
Administrative Agent and each Lender (including, without limitation, reasonable
attorneys’ fees and out-of-pocket expenses) in connection with (y) any
refinancing or restructuring of the credit arrangements provided under this
Agreement, whether in the nature of a “work-out,” in any insolvency or
bankruptcy proceeding or otherwise and whether or not consummated, and (z) the
enforcement, attempted enforcement or preservation of any rights or remedies
under this Agreement or any of the other Credit Documents, whether in any
action, suit or proceeding (including any bankruptcy or insolvency proceeding)
or otherwise, and (iii) to pay and hold the Administrative Agent, the
Arranger and each Lender harmless from and against all liability for any
intangibles, documentary, stamp or other similar taxes, fees and excises, if
any, including

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any interest and
penalties, and any finder’s or brokerage fees, commissions and expenses (other
than any fees, commissions or expenses of finders or brokers engaged by the
Administrative Agent or any Lender), that may be payable in connection with the
transactions contemplated by this Agreement and the other Credit Documents.

11.2         Indemnification.
The Borrower agrees, whether or not the transactions contemplated by this
Agreement shall be consummated, to indemnify and hold the Administrative Agent,
the Arranger and each Lender and each of their respective directors, officers,
employees, agents and Affiliates (each, an “Indemnified Person”)
harmless from and against any and all claims, losses, damages, obligations,
liabilities, penalties, costs and expenses (including, without limitation,
reasonable attorneys’ fees and out-of-pocket expenses) (collectively, “Indemnified
Costs”), that may at any time be imposed on, incurred by or asserted
against any such Indemnified Person as a result of, arising from or in any way
relating to the preparation, execution, performance, enforcement of or
preservation of rights under this Agreement or any of the other Credit
Documents, any of the transactions contemplated herein or therein or any
transaction financed or to be financed in whole or in part, directly or
indirectly, with the proceeds of any Loans or Letters of Credit (including,
without limitation, in connection (i) with the actual or alleged
generation, presence, storage, treatment, disposal, transport, discharge or release
of any Hazardous Substances by any Credit Party on, in, to or from any real
property at any time owned, operated or leased by any Credit Party, (ii) any
other Environmental Claims and (iii) any violation of or liability under
any Environmental Law), or any action, suit or proceeding (including any
inquiry or investigation) by any Person, whether threatened or initiated,
related to any of the foregoing, and in any case whether or not such
Indemnified Person is a party to any such action, proceeding or suit or a
subject of any such inquiry or investigation; provided, however,
that (I) no Indemnified Person shall have the right to be indemnified
hereunder for any Indemnified Costs to the extent such Indemnified Costs result
from (a) the gross negligence, bad faith or willful misconduct of such
Indemnified Person, its Affiliates, agents or representatives, or from a
material breach of such Indemnified Person’s obligations or duties hereunder or
(b) any claim or claims solely among the Administrative Agent and the
Lenders, or any of them, that do not arise out of or relate to a Default or
Event of Default hereunder, and (II) the obligation of the Borrower to pay
or reimburse attorneys’ fees and expenses under this Section is subject to
any otherwise applicable provision contained in Section 11.1
or elsewhere in the Credit Documents relating to the payment or reimbursement
of attorneys’ fees and expenses. All of the foregoing Indemnified Costs of any
Indemnified Person shall be paid or reimbursed by the Borrower, as and when
incurred and upon demand. To the extent permitted by applicable law, the
Borrower shall not assert, and hereby waives, any claim against any Indemnified
Person, on any theory of liability, for special, indirect, consequential or
punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or any of the other Credit
Documents, any of the transactions contemplated herein or therein or any
transaction financed or to be financed in whole or in part, directly or
indirectly, with the proceeds of any Loans or Letters of Credit.

11.3         Governing
Law; Consent to Jurisdiction. THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS
SHALL (EXCEPT AS MAY BE EXPRESSLY OTHERWISE PROVIDED IN ANY CREDIT DOCUMENT)
BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW
YORK 

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GENERAL OBLIGATIONS LAW, BUT EXCLUDING ALL OTHER CHOICE OF LAW AND
CONFLICTS OF LAW RULES); PROVIDED THAT EACH LETTER OF CREDIT SHALL BE
GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OR RULES
DESIGNATED IN SUCH LETTER OF CREDIT OR APPLICATION THEREFOR OR, IF NO SUCH LAWS
OR RULES ARE DESIGNATED, THE INTERNATIONAL STANDBY PRACTICES OF THE
INTERNATIONAL CHAMBER OF COMMERCE, AS IN EFFECT FROM TIME TO TIME (THE “ISP”),
AND, AS TO MATTERS NOT GOVERNED BY THE ISP, THE LAWS OF THE STATE OF NEW YORK
(INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL
OBLIGATIONS LAW, BUT EXCLUDING ALL OTHER CHOICE OF LAW AND CONFLICTS OF LAW
RULES). THE BORROWER HEREBY CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF ANY
STATE COURT WITHIN MECKLENBURG COUNTY, NORTH CAROLINA, OR ANY FEDERAL COURT
LOCATED WITHIN THE WESTERN DISTRICT OF THE STATE OF NORTH CAROLINA FOR ANY
PROCEEDING INSTITUTED HEREUNDER OR UNDER ANY OF THE OTHER CREDIT DOCUMENTS, OR
ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER CREDIT
DOCUMENTS, OR ANY PROCEEDING TO WHICH THE ADMINISTRATIVE AGENT, THE ARRANGER OR
ANY LENDER, OR THE BORROWER IS A PARTY, INCLUDING ANY ACTIONS BASED UPON,
ARISING OUT OF, OR IN CONNECTION WITH ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENT (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE ADMINISTRATIVE AGENT, THE
ARRANGER OR ANY LENDER, OR THE BORROWER. THE BORROWER IRREVOCABLY AGREES TO BE
BOUND (SUBJECT TO ANY AVAILABLE RIGHT OF APPEAL) BY ANY JUDGMENT RENDERED OR
RELIEF GRANTED THEREBY AND FURTHER WAIVES ANY OBJECTION THAT IT MAY HAVE
BASED ON LACK OF JURISDICTION OR IMPROPER VENUE OR FORUM NON CONVENIENS
TO THE CONDUCT OF ANY SUCH PROCEEDING. THE BORROWER CONSENTS THAT ALL SERVICE
OF PROCESS BE MADE BY REGISTERED OR CERTIFIED MAIL DIRECTED TO IT AT THE
ADDRESS SET FORTH IN SECTION 11.5,
AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED UPON THE EARLIER OF ACTUAL
RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE UNITED STATES
MAILS, PROPER POSTAGE PREPAID AND PROPERLY ADDRESSED. NOTHING IN THIS SECTION 11.3 SHALL AFFECT THE RIGHT TO SERVE LEGAL
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT THE RIGHT OF THE
ADMINISTRATIVE AGENT, THE ARRANGER OR ANY LENDER TO BRING ANY ACTION OR
PROCEEDING AGAINST THE BORROWER IN THE COURTS OF ANY OTHER JURISDICTION.

11.4         Waiver
of Jury Trial. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY WAIVES, TO THE
EXTENT PERMITTED BY APPLICABLE LAW, ITS RESPECTIVE RIGHTS TO TRIAL BY JURY OF
ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR IN CONNECTION WITH THIS
AGREEMENT OR ANY OF THE OTHER CREDIT DOCUMENTS TO WHICH IT IS A PARTY.

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11.5         Notices.

(a)           All
notices, directions, consents and other communications provided for hereunder
shall be in writing (including telegraphic, telex, facsimile transmission or
cable communication) and mailed, telegraphed, telexed, telecopied, cabled or
delivered to the party to be notified at the following addresses:

(i)            if to the Borrower,
to Symmetry Medical, Inc., 220 West Market Street, Warsaw, Indiana 46580,
Attention: Fred Hite, Telecopy No. (574) 267-4551;

(ii)           if to the
Administrative Agent, to Wachovia Bank, National Association, Charlotte Plaza
Building CP-23, 201 South College Street, Charlotte, North Carolina 28288-0680,
Attention: Syndication Agency Services, Telephone No. (704) 383-3721,
Telecopy No. (704) 383-0288; and

(iii)          if to any Lender,
to it at the address set forth on Schedule 1.1(a) (or
if to any Lender not a party hereto as of the date hereof, at the address set
forth in its Assignment and Acceptance);

or in each case, to such
other address as any party may designate for itself by like notice to all other
parties hereto. All such notices and communications shall be deemed to have
been given (i) if mailed as provided above by any method other than
overnight delivery service, on the third (3rd) Business Day after deposit in the
mails, (ii) if mailed by overnight delivery service, telegraphed, telexed,
telecopied or cabled, when delivered for overnight delivery, delivered to the
telegraph company, confirmed by telex answerback, transmitted by telecopier or
delivered to the cable company, respectively, or (iii) if delivered by
hand, upon delivery; provided that notices and communications to the
Administrative Agent shall not be effective until received by the
Administrative Agent.

(b)           Notices
and communications to the Lenders hereunder may be delivered or furnished by
electronic communication (including e-mail and internet or intranet websites)
pursuant to procedures approved by the Administrative Agent; provided
that the foregoing shall not apply to notices to any Lender pursuant to Article II if such Lender has notified
the Administrative Agent that it is incapable of receiving notices thereunder
by electronic communication. The Administrative Agent or the Borrower may, in
its discretion, agree to accept notices and other communications to it
hereunder by electronic communication pursuant to procedures approved by it; provided
that approval of such procedures may be limited to particular notices or
communications. Unless the Administrative Agent otherwise prescribes, (i) notices
and other communications sent to an e-mail address shall be deemed to have been
given upon the sender’s receipt of an acknowledgement from the intended
recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), and (ii) notices or other
communications posted to an internet or intranet website shall be deemed to
have been given upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that
such notice or communication is available and identifying the website address
therefor.

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11.6         Amendments,
Waivers, etc. No amendment, modification, waiver or discharge or
termination of, or consent to any departure by any Credit Party from, any
provision of this Agreement or any other Credit Document shall be effective
unless in a writing signed by the Required Lenders (or by the Administrative
Agent at the direction or with the consent of the Required Lenders), and then
the same shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that no such
amendment, modification, waiver, discharge, termination or consent shall:

(a)           unless
agreed to by each Lender directly affected thereby, (i) increase or extend
any Commitment of such Lender (it being understood that a waiver of any Event
of Default, if agreed to by the Required Lenders or all Lenders (as may be
required hereunder with respect to such Event of Default), shall not constitute
such an increase), (ii) reduce or forgive the principal amount of any Loan
or Reimbursement Obligation, reduce the rate of or forgive any interest
thereon, or reduce or forgive any fees or other Obligations (other than fees
payable to the Administrative Agent, the Arranger or the Issuing Lender for its
own account), (iii) extend the Term A Loan Maturity Date, the Term A-1
Loan Maturity Date, the Revolving Credit Maturity Date or any other scheduled
date for the payment of any principal of or interest on any Loan (other than in
connection with a mandatory prepayment of the Loans pursuant to Sections 2.6(e) through 2.6(g))
or reduction or termination of the Revolving Credit Commitments in connection
therewith), extend the time of payment of any Reimbursement Obligation or any
interest thereon or extend the time of payment of any fees hereunder (other
than fees payable to the Administrative Agent, the Arranger or the Issuing
Lender for its own account), or (iv) modify the amortization schedules set
forth in Section 2.6(a) or Section 2.6(b) or
the amortization of any Incremental Term Loan;

(b)           unless
agreed to by all of the Lenders, (i) change the percentage of the
aggregate Commitments or of the aggregate unpaid principal amount of the Loans,
or the number or percentage of Lenders, that shall be required for the Lenders
or any of them to take or approve, or direct the Administrative Agent to take,
any action hereunder or under any other Credit Document (including as set forth
in the definition of “Required Lenders”), (ii) except as may be otherwise
specifically provided in this Agreement or in any other Credit Document,
release all or substantially all of the Collateral or release any Subsidiary
Guarantor from its obligations under the Subsidiary Guaranty, (iii) change
any other provision of this Agreement or any of the other Credit Documents
requiring, by its terms, the consent or approval of all the Lenders for such
amendment, modification, waiver, discharge, termination or consent, (iv) change
or waive any provision of Section 2.15,
any other provision of this Agreement or any other Credit Document requiring
pro rata treatment of any Lenders, or this Section 11.6,
or (v) change or waive Section 2.10
to permit any Interest Period of greater than six months’ duration unless such
Interest Period is subject to the agreement of all of the Lenders;

(c)           unless
agreed to by (i) all of the Revolving Credit Lenders, (y) extend the
expiry date of any Letter of Credit beyond the Letter of Credit Maturity Date
or (z) change the percentage set forth in the definition of “Required
Revolving Credit Lenders” (it being understood that no consent of any other
Lender or the Administrative Agent is required), or (ii) the Required
Revolving Credit Lenders, (y) change any other provision of Article III or any other terms or provisions of, or any
other terms or provisions of any Credit Document relating to, any Letter of
Credit, or (z) amend, modify or waive any condition precedent to any
Borrowing of 

 115
 

 

 

Revolving Loans or issuance of a Letter of Credit set forth in Section 4.2 (including in connection with any waiver of
an existing Default or Event of Default); and

(d)           unless
agreed to by the Issuing Lender, the Swingline Lender or the Administrative
Agent in addition to the Lenders required as provided hereinabove to take such
action, affect the respective rights or obligations of the Issuing Lender, the
Swingline Lender or the Administrative Agent, as applicable, hereunder or under
any of the other Credit Documents;

and provided  further
that (i) if any amendment, modification, waiver or consent would adversely
affect the holders of Loans of a particular Class (the “affected Class”)
relative to holders of Loans of another Class (including, without
limitation, by way of reducing the relative proportion of any payments, prepayments
or Commitment reductions to be applied for the benefit of holders of Loans of
the affected Class under Sections 2.6(e) through
2.6(g), then such amendment,
modification, waiver or consent shall require the consent of Lenders holding at
least a majority of the aggregate outstanding principal amount of all Loans
(and unutilized Commitments, if any) of the affected Class, (ii) the Fee
Letter may only be amended or modified, and any rights thereunder waived, in a
writing signed by the parties thereto, (iii) the Administrative Agent may,
without the consent of any Lender, amend or modify any provision of this
Agreement or any other Credit Document if the effect of such amendment or
modification is strictly technical or correctional in nature and does not
affect any substantive rights of any other party hereto or thereto, and (iv) this
Agreement and the other Credit Documents may be amended or modified with the
consent of the Borrower and the Administrative Agent to give effect to any
Revolving Credit Commitment Increase or Incremental Term Loans as set forth in Sections 2.20 and 2.21.

11.7         Assignments,
Participations.

(a)           Each
Lender may assign to one or more other Eligible Assignees (each, an “Assignee”)
all or a portion of its rights and obligations under this Agreement (including,
without limitation, all or a portion of its Commitments, the outstanding Loans
made by it and its participations in Letters of Credit); provided, however,
that:

(i)            each such
assignment by a Lender of any of its interests relating to Loans of a
particular Class shall be made in such manner so that the same portion of
its Commitment, Loans and other interests under and with respect to such Class is
assigned to the relevant Assignee (but assignments need not be pro rata as among
Classes of Loans);

(ii)           except in the case
of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund with
respect to a Lender, without the written consent (to be evidenced by its
counter execution of the relevant Assignment and Acceptance and not to be
unreasonably withheld or delayed) of each of the Administrative Agent and, so
long as no Default or Event of Default has occurred and is continuing, the
Borrower, no such assignment shall be in an aggregate principal amount
(determined as of the date of the Assignment and Acceptance with respect to
such assignment) less than (x) in the case of Term Loans, $2,500,000 (or,
if less, the full amount of the assigning Lender’s outstanding Term Loans); provided
that, for purposes of this clause (x), a series of assignments by any
Lender, its Affiliates and its Approved Funds on or about the same 

 116
 

 

 

day to several
Assignees that are Affiliates of one another or are related as Approved Funds
shall be deemed to be a single assignment, and all Term Loans held by the
Affiliates and Approved Funds of an assigning Lender shall be deemed to be held
by such Lender, (y) in the case of Revolving Credit Commitments,
$2,500,000 (or, if less, the entire Revolving Credit Commitment of the
assigning Lender), or (z) in the case of Swingline Loans, the entire
Swingline Commitment and the full amount of the outstanding Swingline Loans;
and

(iii)          the parties to each
such assignment will execute and deliver to the Administrative Agent, for its
acceptance and recording in the Register, an Assignment and Acceptance and will
pay a nonrefundable processing fee of $3,500 to the Administrative Agent for
its own account (it being understood that the Borrower shall have no liability
for such processing fee).

Upon such execution, delivery,
acceptance and recording of the Assignment and Acceptance, from and after the
effective date specified therein, (A) the Assignee thereunder shall be a
party hereto and, to the extent that rights and obligations hereunder have been
assigned to it pursuant to such Assignment and Acceptance, shall have the
rights and obligations of the assigning Lender hereunder with respect thereto
and (B) the assigning Lender shall, to the extent that rights and
obligations hereunder have been assigned by it pursuant to such Assignment and
Acceptance, relinquish its rights (other than rights under the provisions of
this Agreement and the other Credit Documents relating to indemnification or
payment of fees, costs and expenses, to the extent such rights relate to the time
prior to the effective date of such Assignment and Acceptance) and be released
from its obligations under this Agreement (and, in the case of an Assignment
and Acceptance covering all or the remaining portion of such assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto, except that such assigning Lender shall continue to be entitled
to the protections of Sections 2.16(a),
2.16(b), 2.17, 11.1 and
11.2 for matters arising during the periods while it was a Lender
hereunder). The terms and provisions of each Assignment and Acceptance shall,
upon the effectiveness thereof, be incorporated into and made a part of this
Agreement, and the covenants, agreements and obligations of each Lender set
forth therein shall be deemed made to and for the benefit of the Administrative
Agent and the other parties hereto as if set forth at length herein.

(b)           The
Administrative Agent, acting solely for this purpose as an agent of the
Borrower, will maintain at its address for notices referred to in Section 11.5(a)(ii) a copy of each Assignment and
Acceptance delivered to and accepted by 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 owing to, each Lender from time to time (the “Register”).
The entries in the Register shall be conclusive and binding for all purposes,
absent manifest error, and the Borrower, the Administrative Agent and the
Lenders may treat each Person whose name is recorded in the Register as a
Lender hereunder for all purposes of this Agreement, notwithstanding notice to
the contrary. The Register shall be available for inspection by the Borrower
and each Lender at any reasonable time and from time to time upon reasonable
prior notice.

(c)           Upon
its receipt of a duly completed Assignment and Acceptance executed by an
assigning Lender and an Assignee and, if required, counterexecuted by the
Borrower and the Issuing Lender, together with the processing fee referred to
in Section 11.7(a),
the 

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Administrative Agent will (i) accept such Assignment and
Acceptance, (ii) on or as of the effective date thereof, record the
information contained therein in the Register and (iii) give notice
thereof to the Borrower. If requested by or on behalf of the Assignee, the
Borrower, at its own expense, will execute and deliver to the Administrative
Agent, in exchange for the surrendered Note or Notes, a new Note or Notes to
the order of the Assignee (and, if the assigning Lender has retained any
portion of its rights and obligations hereunder, to the order of the assigning
Lender), prepared in accordance with the applicable provisions of Section 2.4 as necessary to reflect, after giving
effect to the assignment, the Commitments and/or outstanding Loans, as the case
may be, of the Assignee and (to the extent of any retained interests) the
assigning Lender, in substantially the form of Exhibits A-1,
A-2, and/or A-3, as
applicable. The Administrative Agent will return canceled Notes to the Borrower.
At the time of each assignment pursuant to this Section 11.7
to a Person that is a Non-U.S. Lender and is not already a Lender hereunder,
the assignee Lender shall provide to the Borrower and the Administrative Agent
the appropriate Internal Revenue Service forms described in Section 2.17.

(d)           Each
Lender may, without the consent of the Borrower, the Administrative Agent or
any other Lender, sell to one or more other Persons (each, a “Participant”)
participations in all or a portion of its rights and obligations under this
Agreement (including, without limitation, all or a portion of its Commitments,
the outstanding Loans made by it and its participations in Letters of Credit); provided,
however, that (i) such Lender’s obligations under this Agreement shall
remain unchanged and such Lender shall remain solely responsible for the
performance of such obligations, (ii) the Borrower, the Administrative
Agent and the other Lenders shall continue to deal solely and directly with
such Lender in connection with such Lender’s rights and obligations under this
Agreement, and no Lender shall permit any Participant to have any voting rights
or any right to control the vote of such Lender with respect to any amendment,
modification, waiver, consent or other action hereunder or under any other
Credit Document (except as to actions that would (A) reduce or forgive the
principal amount of any Loan, reduce the rate of or forgive any interest
thereon, or reduce or forgive any fees or other Obligations, (B) extend
the Term A Loan Maturity Date, the Term A-1 Loan Maturity Date, the
Revolving Credit Maturity Date or any other date fixed for the payment of any
principal of or interest on any Loan (other than in connection with a mandatory
prepayment of the Loans pursuant to Sections 2.6(e) through
2.6(g)), any fees or any other
Obligations, (C) increase or extend any Commitment of the Lender selling
the participation, (D) release all or substantially all the Collateral, or
(E) consent to the assignment or transfer by the Borrower of its rights
and obligations under this Agreement), and (iv) no Participant shall have
any rights under this Agreement or any of the other Credit Documents, each
Participant’s rights against the granting Lender in respect of any
participation to be those set forth in the participation agreement, and all
amounts payable by the Borrower hereunder shall be determined as if such Lender
had not granted such participation. Notwithstanding the foregoing, each
Participant shall have the rights of a Lender for purposes of Sections 2.16(a), 2.16(b),  2.17, 2.18
and 9.3, and shall be entitled to the
benefits thereto, to the extent that the Lender granting such participation
would be entitled to such benefits if the participation had not been made; provided
that no Participant shall be entitled to receive any greater amount pursuant to
any of such Sections than the Lender granting such participation would have
been entitled to receive in respect of the amount of the participation made by
such Lender to such Participant had such participation not been made.

 118
 

 

 

(e)           Nothing
in this Agreement shall be construed to prohibit any Lender from pledging or
assigning all or any portion of its rights and interest hereunder as security
for borrowings or other obligations, including any pledge or assignment to
secure obligations to a Federal Reserve Bank or, in the case of any Lender that
is an Fund, to the trustee under any indenture to which such Fund is a party in
support of its obligations to the trustee for the benefit of the applicable
trust beneficiaries; provided, however, that no such pledge or
assignment shall release a Lender from any of its obligations hereunder; and provided
further that any foreclosure or similar action by any such trustee shall
be subject to the provisions of this Section 11.7
concerning assignments and no such trustee shall have any voting rights
hereunder solely on account of such pledge.

(f)            Any
Lender or participant may, in connection with any assignment, participation,
pledge or proposed assignment, participation or pledge pursuant to this Section 11.7, disclose to the Assignee, Participant or
pledgee or proposed Assignee, Participant or pledgee any information relating
to the Borrower and its Subsidiaries furnished to it by or on behalf of any
other party hereto; provided that such Assignee, Participant or pledgee
or proposed Assignee, Participant or pledgee agrees in writing to keep such
information confidential to the same extent required of the Lenders under Section 11.13.

(g)           Notwithstanding
anything to the contrary contained herein, if Wachovia assigns all of its
Revolving Credit Commitments and Revolving Loans in accordance with this Section 11.7, Wachovia may resign as Issuing Lender
upon written notice to the Borrower and the Lenders. Upon any such notice of
resignation, the Borrower shall have the right to appoint from among the
Lenders a successor Issuing Lender; provided that no failure by the
Borrower to make such appointment shall affect the resignation of Wachovia as
Issuing Lender. Wachovia shall retain all of the rights and obligations of the
Issuing Lender hereunder with respect to all Letters of Credit issued by it and
outstanding as of the effective date of its resignation and all obligations of
the Borrower and the Revolving Credit Lenders with respect thereto (including
the right to require the Revolving Credit Lenders to make Revolving Loans or
fund participation interests pursuant to Article III).

11.8         No
Waiver. The rights and remedies of the Administrative Agent and the Lenders
expressly set forth in this Agreement and the other Credit Documents are
cumulative and in addition to, and not exclusive of, all other rights and
remedies available at law, in equity or otherwise. No failure or delay on the
part of the Administrative Agent or any Lender in exercising any right, power
or privilege shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right, power or privilege preclude other or further
exercise thereof or the exercise of any other right, power or privilege or be
construed to be a waiver of any Default or Event of Default. No course of
dealing between any Credit Party, the Administrative Agent or the Lenders or
their agents or employees shall be effective to amend, modify or discharge any
provision of this Agreement or any other Credit Document or to constitute a
waiver of any Default or Event of Default. No notice to or demand upon any
Credit Party in any case shall entitle any Credit Party to any other or further
notice or demand in similar or other circumstances or constitute a waiver of
the right of the Administrative Agent or any Lender to exercise any right or
remedy or take any other or further action in any circumstances without notice
or demand.

 119
 

 

 

11.9         Successors
and Assigns. This Agreement shall be binding upon, inure to the benefit of
and be enforceable by the respective successors and assigns of the parties
hereto, and all references herein to any party shall be deemed to include its
successors and assigns; provided, however, that neither (i) the
Borrower nor any other Credit Party shall sell, assign or transfer any of its
rights, interests, duties or obligations under this Agreement without the prior
written consent of all of the Lenders and (ii) Assignees and Participants
shall have such rights and obligations with respect to this Agreement and the
other Credit Documents as are provided for under and pursuant to the provisions
of Section 11.7.

11.10       Survival.
All representations, warranties and agreements made by or on behalf of the Borrower
or any other Credit Party in this Agreement and in the other Credit Documents
shall survive the execution and delivery hereof or thereof, the making and
repayment of the Loans and the issuance and repayment of the Letters of Credit.
In addition, notwithstanding anything herein or under applicable law to the
contrary, the provisions of this Agreement and the other Credit Documents
relating to indemnification or payment of costs and expenses, including,
without limitation, the provisions of Sections 2.16(a),
2.16(b), 2.17, 2.18,  10.7,
11.1 and 11.2, shall survive the payment in full of
all Loans and Letters of Credit, the termination of the Commitments and all
Letters of Credit, and any termination of this Agreement or any of the other
Credit Documents.

11.11       Severability.
To the extent any provision of this Agreement is prohibited by or invalid under
the applicable law of any jurisdiction, such provision shall be ineffective
only to the extent of such prohibition or invalidity and only in such
jurisdiction, without prohibiting or invalidating such provision in any other
jurisdiction or the remaining provisions of this Agreement in any jurisdiction.

11.12       Construction.
The headings of the various articles, sections and subsections of this
Agreement and the table of contents have been inserted for convenience only and
shall not in any way affect the meaning or construction of any of the
provisions hereof. Except as otherwise expressly provided herein and in the
other Credit Documents, in the event of any inconsistency or conflict between
any provision of this Agreement and any provision of any of the other Credit
Documents, the provision of this Agreement shall control.

11.13       Confidentiality.
Each of the Administrative Agent and each Lender agrees to keep confidential,
pursuant to its customary procedures for handling confidential information of a
similar nature and in accordance with safe and sound banking practices, all
nonpublic information provided to it by or on behalf of the Borrower or any
other Credit Party in connection with this Agreement or any other Credit
Document; provided, however, that each of the Administrative
Agent and each Lender may disclose such information (i) to its Affiliates,
and to its and its Affiliates’ respective directors, employees and agents and
to its auditors, counsel and other professional advisors so long such parties
are notified of the confidential nature of such information (provided
that such parties shall be subject to the provisions of this Section 11.13 to the same extent as
such Lender), (ii) at the demand or request of any bank regulatory
authority, court or other Governmental Authority having or asserting
jurisdiction over the Administrative Agent or such Lender or any of their
respective Affiliates, as may be required pursuant to subpoena or other legal
process, or otherwise in order to comply with any applicable Requirement of
Law, provided that the Administrative Agent or such Lender shall, if
practicable 

 120
 

 

 

(and if not prohibited from so doing by any applicable Requirement of
Law or court or administrative order), provide the Borrower with prior notice
of such disclosure, (iii) in connection with any proceeding to enforce its
rights hereunder, under any other Credit Document or under any Hedge Agreement
or in any other litigation or proceeding in connection with the Credit
Documents or any Hedge Agreement or to which it is a party, (iv) to the
Administrative Agent, the Arranger or any other Lender, (v) to the extent
the same has become publicly available other than as a result of a breach of
this Agreement, and (vi) pursuant to and in accordance with the provisions
of Section 11.7(f).

11.14       Counterparts;
Effectiveness. This Agreement may be executed in any number of counterparts
and by different parties hereto on separate counterparts, each of which when so
executed and delivered shall be an original, but all of which shall together
constitute one and the same instrument. This Agreement shall become effective
upon the execution of a counterpart hereof by each of the parties hereto and
receipt by the Administrative Agent and the Borrower of written or telephonic
notification of such execution and authorization of delivery thereof.

11.15       Disclosure
of Information. The Borrower agrees and consents to the Administrative Agent’s
and the Arranger’s disclosure of information relating to this transaction to Gold
Sheets and other similar bank trade publications. Such information will
consist of deal terms and other information customarily found in such
publications.

11.16       USA
PATRIOT Act Notice. Each Lender that is subject to the PATRIOT Act and the
Administrative Agent (for itself and not on behalf of any Lender) hereby
notifies the Borrower that pursuant to the requirements of the PATRIOT Act, it
is required to obtain, verify and record information that identifies the
Borrower, which information includes the name and address of the Borrower and
other information that will allow such Lender or the Administrative Agent, as
applicable, to identify the Borrower in accordance with the PATRIOT Act.

11.17       Entire
Agreement. THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS (A) EMBODY
THE ENTIRE AGREEMENT AND UNDERSTANDING BETWEEN THE PARTIES HERETO AND THERETO
RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF, (B) SUPERSEDE ANY AND
ALL PRIOR AGREEMENTS AND UNDERSTANDINGS OF SUCH PERSONS, ORAL OR WRITTEN,
RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF, INCLUDING, WITHOUT
LIMITATION, THE ENGAGEMENT LETTER (AND ALL OBLIGATIONS OF THE PARTIES
THEREUNDER SHALL BE TERMINATED AS OF THE DATE HEREOF), BUT SPECIFICALLY
EXCLUDING THE FEE LETTER, AND (C) MAY NOT BE AMENDED, SUPPLEMENTED,
CONTRADICTED OR OTHERWISE MODIFIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

11.18       Waiver. The
Borrower hereby requests that the lenders under the Existing Credit Agreement
(the “Existing Credit Agreement Lenders”) waive defaults under the
Existing Credit Agreement that occurred when (i) the Borrower, or one of
its Subsidiaries, sold certain real property located in the United Kingdom for
approximately $2,500,000 in violation of Section 8.4(v) of the
Existing Credit Agreement and (ii) the Borrower failed to make prepayments
as a result of such sale in accordance with Section 2.6(f) of the
Existing Credit Agreement (the 

 121
 

 

 

“Specified Events of Default”). By executing this Agreement, the
Existing Credit Agreement Lenders hereby waive the Specified Events of Default
and any remedy that they would be entitled as a result thereof. This waiver is
limited as specified and shall not constitute or be deemed to constitute an
amendment, modification or waiver of any provision of the Existing Credit
Agreement or a waiver of any Default or Event of Default under the Existing
Credit Agreement or this Credit Agreement except as expressly set forth herein
with respect to the Specified Events of Default.

 122

 

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

	
   

  	
  SYMMETRY MEDICAL INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Fred L. Hite

  
	
   

  	
   

  	
  Fred L. Hite, Chief Financial Officer, Senior Vice
  President and Secretary

  
	
  (signatures
  continued)

  

 

 S-1
 

 

 

	
  

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION, as Administrative Agent, Issuing Lender, Swingline
  Lender and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Glenn F. Edwards

  
	
   

  	
  Name:

  	
  Glenn F. Edwards

  
	
   

  	
  Title:

  	
  Managing Director

  

 

 S-2
 

 

 

	
  

  	
  GENERAL ELECTRIC CAPITAL
  CORPORATION, as
  Syndication Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David R. Campbell

  
	
   

  	
   

  	
  David R. Campbell

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

 S-3
 

 

 

	
  

  	
  CIT LENDING SERVICES CORPORATION, as Documentation Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dennis Zinkand

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  CIT Healthcare LLC

  
	
   

  	
   

  	
  Dennis Zinkand, Director

  

 

 S-4
 

 

 

	
  

  	
  CHARTER ONE BANK, N.A., as
  Documentation Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mary Ann Klemm

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Mary Ann Klemm, VP

  

 

 S-5
 

 

 

	
  

  	
  ANTARES CAPITAL CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert M. Kadlick

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Robert M. Kadlick

  

 

 S-6
 

 

 

	
  

  	
  PB CAPITAL CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kevin M. Higgins

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Kevin M. Higgins, Assistant Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ronni J. Leopold

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Ronni J. Leopold, Vice President

  

 

 S-7
 

 

 

	
  

  	
  FIFTH THIRD BANK

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sheridan Sanders

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  

 

 S-8
 

 

 

	
  

  	
  NATIONAL CITY BANK

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark A. Minnick

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

 S-9
 

 

 

	
  

  	
  WELLS FARGO BANK, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey White

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  

 

 S-10
 

 

 

	
  

  	
  THE NORTHERN TRUST COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J.T. Hall

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  

 

 S-11
 

 

 

	
  

  	
  COMERICA BANK

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Colleen M. Murphy

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  

 

 S-12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]