FINANCING AGREEMENT

1

I.

DEFINITIONS.

1

1.1.

Accounting Terms.

1

1.2.

General Terms.

1

1.3.

UCC Terms.

22

1.4.

Certain Matters of Construction.

22

II.

ADVANCES, PAYMENTS.

23

2.1.

Revolving Advances.

23

2.2.

Procedure for Borrowing.

24

2.3.

Disbursement of Advance Proceeds.

26

2.4.

Maximum Advances and Letters of Credit and Air Releases/Steamship

Guarantees.

27

2.5.

Repayment of Advances.

27

2.6.

Repayment of Excess Revolving Advances.

28

2.7.

Statement of Account.

28

2.8.

Letters of Credit and Air Releases/Steamship Guarantees.

28

2.9.

Issuance of Letters of Credit and Air Releases/Steamship Guarantees.

29

2.10.

    Requirements For Issuance of Letters of Credit and Air Releases/Steamship

Guarantees.

30

2.11.

    Additional Payments.

32

2.12.

    Manner of Borrowing and Payment.

32

2.13.

    Mandatory Prepayments.

33

2.14.

    Use of Proceeds.

34

2.15.

    Defaulting Lender.

35

III.

INTEREST AND FEES.

36

3.1.

Interest.

36

3.2.

Letter of Credit Fees and Guarantee Fees; Cash Collateral.

36

3.3.

[Intentionally Omitted].

37

3.4.

Collateral Agency Fee and Fee Letter.

37

3.5.

Computation of Interest and Fees.

37

3.6.

Maximum Charges.

37

3.7.

Increased Costs.

38

3.8.

Basis For Determining Interest Rate Inadequate or Unfair.

38

3.9.

Capital Adequacy.

39

3.10.

    Gross Up for Taxes.

40

3.11.

    Withholding Tax Exemption.

40

IV.

COLLATERAL: GENERAL TERMS.

41

4.1.

Security Interest in the Collateral.

41

4.2.

Perfection of Security Interest.

41

4.3.

Disposition of Collateral.

42

4.4.

Preservation of Collateral.

43

4.5.

Ownership of Collateral.

43

4.6.

Defense of Agent's and Lenders' Interests.

44

4.7.

Books and Records.

44

4.8.

Financial Disclosure.

44

4.9.

Compliance with Laws.

45

4.10.

    Inspection of Premises.

45

4.11.

    Insurance.

45

4.12.

    Failure to Pay Insurance.

46

4.13.

    Payment of Taxes.

46

4.14.

    Payment of Leasehold Obligations.

47

4.15.

    Receivables

47

4.16.

    Inventory.

49

4.17.

    Maintenance of Equipment.

49

4.18.

    Exculpation of Liability.

50

4.19.

    Environmental Matters.

50

4.20.

    Financing Statements.

52

4.21.

    Collateral Audits.

52

V.

REPRESENTATIONS AND WARRANTIES.

52

5.1.

Authority.

52

5.2.

Formation and Qualification.

53

5.3.

Truthfulness of Representations and Warranties.

53

5.4.

Tax Returns.

53

5.5.

Financial Statements.

53

5.6.

Entity Name.

54

5.7.

O.S.H.A. and Environmental Compliance.

54

5.8.

Solvency; No Litigation, Violation, Indebtedness or Default.

55

5.9.

Patents, Trademarks, Copyrights and Licenses.

56

5.10.

    Licenses and Permits.

57

5.11.

    No Defaults.

57

5.12.

    No Burdensome Restrictions.

57

5.13.

    No Labor Disputes.

57

5.14.

    Margin Regulations.

57

5.15.

    Investment Company Act.

58

5.16.

    Disclosure.

58

5.17.

    Swaps.

58

5.18.

    Conflicts.

58

5.19.

    Application of Certain Laws and Regulations.

58

5.20.

    Business and Property of Credit Parties.

58

5.21.

    Material Contracts.

59

5.22.

    Anti-Terrorism Laws.

59

5.23.

    Trading with the Enemy.

60

VI.

AFFIRMATIVE COVENANTS.

60

6.1.

Payment of Fees.

60

6.2.

Conduct of Business and Maintenance of Existence and Assets.

60

6.3.

Violations.

60

6.4.

Government Receivables.

61

6.5.

Execution of Supplemental Instruments.

61

6.6.

Payment of Indebtedness.

61

6.7.

Standards of Financial Statements.

61

6.8.

Fixed Charge Coverage Ratio..

61

VII.

NEGATIVE COVENANTS.

61

7.1.

Merger, Consolidation, Acquisition and Sale of Assets.

62

7.2.

Creation of Liens; Negative Pledges.

End of Preview