**CREDIT      AGREEMENT**

**by      and among**

**PORTRAIT      CORPORATION OF AMERICA INC.**

**as      Parent Guarantor,**

**PCA      LLC**

**and**

**EACH      OF ITS SUBSIDIARIES THAT ARE SIGNATORIES HERETO**

**as      Borrowers,**

**THE      LENDERS THAT ARE SIGNATORIES HERETO**

**as      the Lenders,**

**and**

**WELLS      FARGO FOOTHILL, INC.**

**as      the Arranger and Administrative Agent**

**Dated      as of July 15, 2005**

----

**CREDIT      AGREEMENT**

**THIS      CREDIT AGREEMENT **
**WELLS      FARGO FOOTHILL, INC.**
**PCA      LLC**
**PORTRAIT      CORPORATION OF AMERICA, INC.**

**1.**
**DEFINITIONS      AND CONSTRUCTION.**

**Definitions**

**Accounting      Terms**

**Code**

**Construction**

----

**Schedules      and Exhibits**

**2.**
**LOAN      AND TERMS OF PAYMENT.**

**Revolver      Advances**

*the      lesser of*
*less      *
*less*

*ad      valorem*

**LC      Facility Letters of Credit**

----

*less      *

*less      *

----

----

**Borrowing      Procedures and Settlements**

**Procedure      for Borrowing.**

**Making      of Swing Loans.**

----

**Making      of Loans**

----

**Protective      Advances and Optional Overadvances**

----

**Settlement.**

----

**Notation.**

**Lenders’      Failure to Perform.**

**Payments**

**Payments      by Borrowers**

**Apportionment      and Application**

----

----

**Loan      Limit.**

**Overadvances**

----

**Interest      Rates and Letter of Credit Fee: Rates, Payments, and      Calculations**

**Interest      Rates.**

**Letter      of Credit Fee.**

**Default      Rate.**

**Payment.**

**Computation.**

----

**Intent      to Limit Charges to Maximum Lawful Rate**

**Cash      Management**

----

----

**Crediting      Payments**

**Designated      Account**

**Maintenance      of Loan Account; Statements of Obligations**

**Fees**

**Letters      of Credit**

----

*less      *

*less      *

----

----

**LIBOR      Option**

**Interest      and Interest Payment Dates.**

**LIBOR      Election**

----

**WITHOUT      LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON      WITH      RESPECT TO INDEMNIFIED LIABILITIES WHICH IN ANY WAY OR TO ANY EXTENT IN WHOLE      OR      IN PART CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT OR OMISSION OF SUCH      INDEMNIFIED PERSON OR OF ANY OTHER PERSON OR UNDER ANY CLAIM OR THEORY OF STRICT      LIABILITY. **
*minus      *

**Prepayments.**

**Special      Provisions Applicable to LIBOR Rate**

----

**No      Requirement of Matched Funding.**

**Capital      Requirements**

**Joint      and Several Liability of Borrowers**

----

----

----

**3.**
**CONDITIONS;      TERM OF AGREEMENT.**

**Conditions      Precedent to the Initial Extension of Credit**

**Conditions      Precedent to all Extensions of Credit**

**Term**

**Effect      of Termination**

----

**Early      Termination by Borrowers**

**4.**
**REPRESENTATIONS      AND WARRANTIES.**

**No      Encumbrances**

**Accounts**

**Inventory**

**Equipment**

**Location      of Inventory and Equipment**

----

**Inventory      Records**

**State      of Incorporation; Location of Chief Executive Office; Organizational      Identification Number; Commercial Tort Claims**

**Due      Organization and Qualification; Subsidiaries**

**Due      Authorization; No Conflict**

----

**Litigation**

**No      Material Adverse Change**

**Fraudulent      Transfer**

----

**Employee      Benefits**

**Environmental      Condition**

**Intellectual      Property**

----

**Leases**

**Deposit      Accounts and Securities Accounts**

**Complete      Disclosure**

**Indebtedness**

**Material      Contracts**

**Note      Documents**
**.**

----

**5.**
**AFFIRMATIVE      COVENANTS.**

**Accounting      System**

**Collateral      Reporting**

**Financial      Statements, Reports, Certificates**

**Credit      Party Reports**

**Inspection**

**Maintenance      of Properties**

**Taxes**

----

**Insurance**

**Location      of Inventory and Equipment**

----

**Compliance      with Laws**

**Leases**

**Existence**

**Environmental**

**Disclosure      Updates**

**Control      Agreements**

----

**Formation      of Subsidiaries**

**ERISA      Compliance**
**.**

----

**5.18**
**Note      Documents**
**.**
** **

**Further      Assurances**
**.**

**Post-Closing      Conditions**
**.**
** **

----

----

**6.**
**NEGATIVE      COVENANTS.**

**Indebtedness**

----

**Liens**

**Restrictions      on Fundamental Changes**

----

**Disposal      of Assets**

**Change      Name**

**Nature      of Business**

**Payments      and Amendments**

----

**Change      of Control**

**Consignments**

**Distributions**

**Accounting      Methods**

**Investments**

**Transactions      with Affiliates**

----

**Use      of Proceeds**

**Inventory      and Equipment with Bailees**

**Financial      Covenants**

|  Applicable                Ratio  |  Measurement                Date                                                                               |
|---------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|
|  0.30:1.00                        |  October                30, 2005                                                                               |
|  0.40:1.00                        |  January                29, 2006                                                                               |
|  0.35:1.00                        |  April                30, 2006                                                                                 |
|  0.45:1.00                        |  July                30, 2006                                                                                  |
|  0.55:1.00                        |  October                29, 2006                                                                               |
|  0.70:1.00                        |  January                28, 2007                                                                               |
|  0.75:1.00                        |  April                29, 2007                                                                                 |
|  0.75:1.00                        |  July                29, 2007                                                                                  |
|  0.80:1.00                        |  October                28, 2007                                                                               |
|  0.80:1.00                        |  February                3, 2008                                                                               |
|  0.85:1.00                        |  May                4, 2008                                                                                    |
|  0.85:1.00                        |  August                3, 2008                                                                                 |
|  0.85:1.00                        |  November                2, 2008                                                                               |
|  0.95:1.00                        |  February                1, 2009 and the last day  of                each fiscal quarter thereafter  |

----

**ERISA**
**.      **

**Material      Contracts**

**7.**
**EVENTS      OF DEFAULT.**

----

**Error!      Reference source not found.**

----

----

**8.**
**THE      LENDER GROUP’S RIGHTS AND REMEDIES.**

**Rights      and Remedies**

**Remedies      Cumulative**

----

**9.**
**TAXES      AND EXPENSES.**

**10.**
**WAIVERS;      INDEMNIFICATION.**

**Demand;      Protest; etc**

**The      Lender Group’s Liability for Collateral**

**Indemnification**
**WITHOUT      LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON      WITH      RESPECT TO INDEMNIFIED LIABILITIES WHICH IN ANY WAY OR TO ANY EXTENT IN WHOLE      OR      IN PART CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT OR OMISSION OF SUCH      INDEMNIFIED PERSON OR OF ANY OTHER PERSON OR UNDER ANY CLAIM OR THEORY OF STRICT      LIABILITY.**

----

**Waiver      of Consequential Damages, Etc**

**11.**
**NOTICES.**

| If                to any Credit Party, in care of Administrative                Borrower at: | **PCA                LLC**815                Matthews-Mint Hill RoadMatthews,                NC 28105Attn:                Donald Norsworthy, CFOFax                No.: 704.847.8010                                                                          |
|----------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| with                copies to:                                                          | **JUPITER                PARTNERS II L.P****.**12                East 49th Street, 36th FloorNew                York, NY 10017Attn:                John F. KleinFax                No.: 212.300.1001                                                          |
| and                to:                                                                       | **PAUL,                WEISS, RIFKIND, WHARTON &****GARRISON                LLP**1285                Avenue of the AmericasNew                York, NY 10019Attn:                Richard BorisoffFax                No.: 212.757.3990                     |
| If                to Agent:                                                                  | **WELLS                FARGO FOOTHILL, INC.**400                Northpark Town Center1000                Abernathy Road, Suite 1450Atlanta,                GA 30328Attn:                Business Finance Division ManagerFax                No.: 770.508.1374 |
| with                copies to:                                                               | **MORRISON                & FOERSTER LLP**555                West Fifth StreetLos                Angeles, CA 90013Attn:                Sandra L. MontgomeryFax                No.: 213.892.5454                                                           |

----

**12.**
**CHOICE      OF LAW AND VENUE; JURY TRIAL WAIVER.**

**(a)**
**THE      VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY      PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER      LOAN      DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF,      AND THE RIGHTS OF THE PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS      ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO SHALL BE DETERMINED      UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE      OF      NEW YORK.**

**(b)**
**THE      PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS      AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN      THE      STATE AND TO THE EXTENT PERMITTED BY APPLICABLE LAW, FEDERAL COURTS LOCATED      IN      THE BOROUGH OF MANHATTAN, COUNTY OF NEW YORK, STATE OF NEW YORK,**
**PROVIDED**
**,      **
**HOWEVER**
**,      THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY      MAY      BE BROUGHT, AT AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE AGENT      ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY      BE      FOUND. EACH CREDIT PARTY AND EACH MEMBER OF THE LENDER GROUP WAIVE, TO THE      EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE      DOCTRINE OF **
**FORUM      NON CONVENIENS**
**      OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE      WITH      THIS **
**SECTION **
**12(b)**
**.**

----

**(c)**
**EACH      CREDIT PARTY AND EACH MEMBER OF THE LENDER GROUP HEREBY WAIVE THEIR RESPECTIVE      RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING      OUT      OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN,      INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER      COMMON LAW OR STATUTORY CLAIMS. EACH CREDIT PARTY AND EACH MEMBER OF THE LENDER      GROUP REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND      VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL      COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED      AS A      WRITTEN CONSENT TO A TRIAL BY THE COURT.**

**13.**
**ASSIGNMENTS      AND PARTICIPATIONS; SUCCESSORS.**

**Assignments      and Participations**

----

*pro      tanto*

----

**Successors**
*ab      initio*

**14.**
**AMENDMENTS;      WAIVERS.**

**Amendments      and Waivers**
**.**

----

**Replacement      of Holdout Lender**

----

**No      Waivers; Cumulative Remedies**

**15.**
**AGENT;      THE LENDER GROUP.**

**Appointment      and Authorization of Agent**

----

**Delegation      of Duties**

**Liability      of Agent**

**Reliance      by Agent**

**Notice      of Default or Event of Default**

**Credit      Decision**

----

**Costs      and Expenses; Indemnification**

**Agent      in Individual Capacity**

----

**Successor      Agent**

**Lender      in Individual Capacity**

**Withholding      Taxes**

----

----

**Collateral      Matters**

----

**Restrictions      on Actions by Lenders; Sharing of Payments**

**Agency      for Perfection**

**Payments      by Agent to the Lenders**

**Concerning      the Collateral and Related Loan Documents**

----

**Field      Audits and Examination Reports; Confidentiality; Disclaimers by Lenders; Other      Reports and Information**

**Several      Obligations; No Liability**

----

**Bank      Product Providers**

**16.**
**GENERAL      PROVISIONS.**

**Effectiveness**

**Section      Headings**

**Interpretation**

**Severability      of Provisions**

**Counterparts;      Electronic Execution**

**Revival      and Reinstatement of Obligations**

----

**Confidentiality**

**Integration**

**PCA      as Agent for Borrowers**

----

**Public      Disclosure**
**.**

**[Signature      pages follow.]**

----

**IN      WITNESS WHEREOF**

|  **PARENT                GUARANTOR:**   |  **PORTRAIT                CORPORATION OF AMERICA, INC.,**a                Delaware corporation  By: /s/                Donald NorsworthyIts: Executive                Vice President and  Chief                Financial Officer                                                                                                                            |
|----------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  **BORROWERS:**                         |  **PCA                LLC,**a                Delaware limited liability company  By: /s/                Donald NorsworthyIts: Executive                Vice President and  Chief                Financial Officer                                                                                                                                            |
|                                         |  **AMERICAN                STUDIOS, INC.,**a                North Carolina corporation  By: /s/                Donald NorsworthyIts: Executive                Vice President and  Chief                Financial Officer                                                                                                                                     |
|                                         |  **PCA                PHOTO CORPORATION OF CANADA, INC.,**a                North Carolina corporation  By: /s/                Donald NorsworthyIts: Executive                Vice President and  Chief                Financial Officer                                                                                                                      |
|                                         |  **PCA                NATIONAL LLC,**a                Delaware limited liability company  By: /s/                Donald NorsworthyIts: Executive                Vice President and  Chief                Financial Officer                                                                                                                                   |
|                                         |  **HOMETOWN                THREADS LLC,**a                Delaware limited liability company  By: /s/                Donald NorsworthyIts: Executive                Vice President and  Chief                Financial Officer                                                                                                                               |
|                                         |  **PCA                NATIONAL OF TEXAS L.P.,**a                Texas limited partnership By:**PCA                NATIONAL LLC**,a                Delaware limited liability companyIts:General                Partner By:                /s/ Donald NorsworthyIts:                Executive                Vice President and  Chief                Financial Officer |
|  **AGENT                AND A LENDER:** |  **WELLS                FARGO FOOTHILL, INC.,**a                California corporation  By: /s/                Cheri MacDonaldIts: Vice                President                                                                                                                                                                                                  |

----

|   |                                                                                                                                                            | Page |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|------|
| 1      | DEFINITIONS                  AND CONSTRUCTION                                                                                                                   | 1    |
| 1.1    | Definitions                                                                                                                                                     | 1    |
| 1.2    | Accounting                  Terms                                                                                                                               | 1    |
| 1.3    | Code                                                                                                                                                            | 1    |
| 1.4    | Construction                                                                                                                                                    | 1    |
| 1.5    | Schedules                  and Exhibits                                                                                                                         | 2    |
| 2      | LOAN                  AND TERMS OF PAYMENT                                                                                                                      | 2    |
| 2.1    | Revolver                  Advances                                                                                                                              | 2    |
| 2.2    | LC                  Facility Letters of Credit                                                                                                                  | 2    |
| 2.3    | Borrowing                  Procedures and Settlements                                                                                                           | 5    |
| 2.4    | Payments                                                                                                                                                        | 9    |
| 2.5    | Overadvances                                                                                                                                                    | 11   |
| 2.6    | Interest                  Rates and Letter of Credit Fee: Rates, Payments, and                  Calculations                                                    | 12   |
| 2.7    | Cash                  Management                                                                                                                                | 13   |
| 2.8    | Crediting                  Payments                                                                                                                             | 15   |
| 2.9    | Designated                  Account                                                                                                                             | 15   |
| 2.1    | Maintenance                  of Loan Account; Statements of Obligations                                                                                         | 15   |
| 2.11   | Fees                                                                                                                                                            | 15   |
| 2.12   | Letters                  of Credit                                                                                                                              | 15   |
| 2.13   | LIBOR                  Option                                                                                                                                   | 18   |
| 2.14   | Capital                  Requirements                                                                                                                           | 20   |
| 2.15   | Joint                  and Several Liability of Borrowers                                                                                                       | 20   |
| 3      | CONDITIONS;                  TERM OF AGREEMENT                                                                                                                  | 23   |
| 3.1    | Conditions                  Precedent to the Initial Extension of Credit                                                                                        | 23   |
| 3.2    | Conditions                  Precedent to all Extensions of Credit                                                                                               | 23   |
| 3.3    | Term                                                                                                                                                            | 23   |
| 3.4    | Effect                  of Termination                                                                                                                          | 23   |
| 3.5    | Early                  Termination by Borrowers                                                                                                                 | 24   |
| 4      | REPRESENTATIONS                  AND WARRANTIES                                                                                                                 | 24   |
| 4.1    | No                  Encumbrances                                                                                                                                | 24   |
| 4.2    | Accounts                                                                                                                                                        | 24   |
| 4.3    | Inventory                                                                                                                                                       | 24   |
| 4.4    | Equipment                                                                                                                                                       | 24   |
| 4.5    | Location                  of Inventory and Equipment                                                                                                            | 24   |
| 4.6    | Inventory                  Records                                                                                                                              | 25   |
| 4.7    | State                  of Incorporation; Location of Chief Executive Office; Organizational                  Identification Number; Commercial Tort Claims      | 25   |
| 4.8    | Due                  Organization and Qualification; Subsidiaries                                                                                               | 25   |
| 4.9    | Due                  Authorization; No Conflict                                                                                                                 | 25   |
| 4.1    | Litigation                                                                                                                                                      | 26   |
| 4.11   | No                  Material Adverse Change                                                                                                                     | 26   |
| 4.12   | Fraudulent                  Transfer                                                                                                                            | 26   |
| 4.13   | Employee                  Benefits                                                                                                                              | 27   |
| 4.14   | Environmental                  Condition                                                                                                                        | 27   |
| 4.15   | Intellectual                  Property                                                                                                                          | 27   |
| 4.16   | Leases                                                                                                                                                          | 28   |
| 4.17   | Deposit                  Accounts and Securities Accounts                                                                                                       | 28   |
| 4.18   | Complete                  Disclosure                                                                                                                            | 28   |
| 4.19   | Indebtedness                                                                                                                                                    | 28   |
| 4.2    | Material                  Contracts                                                                                                                             | 28   |
| 4.21   | Note                  Documents                                                                                                                                 | 28   |
| 5      | AFFIRMATIVE                  COVENANTS                                                                                                                          | 29   |
| 5.1    | Accounting                  System                                                                                                                              | 29   |
| 5.2    | Collateral                  Reporting                                                                                                                           | 29   |
| 5.3    | Financial                  Statements, Reports, Certificates                                                                                                    | 29   |
| 5.4    | Credit                  Party Reports                                                                                                                           | 29   |
| 5.5    | Inspection                                                                                                                                                      | 29   |
| 5.6    | Maintenance                  of Properties                                                                                                                      | 29   |
| 5.7    | Taxes                                                                                                                                                           | 29   |
| 5.8    | Insurance                                                                                                                                                       | 30   |
| 5.9    | Location                  of Inventory and Equipment                                                                                                            | 30   |
| 5.1    | Compliance                  with Laws                                                                                                                           | 31   |
| 5.11   | Leases                                                                                                                                                          | 31   |
| 5.12   | Existence                                                                                                                                                       | 31   |
| 5.13   | Environmental                                                                                                                                                   | 31   |
| 5.14   | Disclosure                  Updates                                                                                                                             | 31   |
| 5.15   | Control                  Agreements                                                                                                                             | 31   |
| 5.16   | Formation                  of Subsidiaries                                                                                                                      | 32   |
| 5.17   | ERISA                  Compliance                                                                                                                               | 32   |
| 5.18   | Note                  Documents                                                                                                                                 | 33   |
| 5.19   | Further                  Assurances                                                                                                                             | 33   |
| 5.2    | Post-Closing                  Conditions                                                                                                                        | 33   |
| 6      | NEGATIVE                  COVENANTS                                                                                                                             | 35   |
| 6.1    | Indebtedness                                                                                                                                                    | 35   |
| 6.2    | Liens                                                                                                                                                           | 36   |
| 6.3    | Restrictions                  on Fundamental Changes                                                                                                            | 36   |
| 6.4    | Disposal                  of Assets                                                                                                                             | 37   |
| 6.5    | Change                  Name                                                                                                                                    | 37   |
| 6.6    | Nature                  of Business                                                                                                                             | 37   |
| 6.7    | Payments                  and Amendments                                                                                                                        | 37   |
| 6.8    | Change                  of Control                                                                                                                              | 38   |
| 6.9    | Consignments                                                                                                                                                    | 38   |
| 6.1    | Distributions                                                                                                                                                   | 38   |
| 6.11   | Accounting                  Methods                                                                                                                             | 38   |
| 6.12   | Investments                                                                                                                                                     | 38   |
| 6.13   | Transactions                  with Affiliates                                                                                                                   | 38   |
| 6.14   | Use                  of Proceeds                                                                                                                                | 39   |
| 6.15   | Inventory                  and Equipment with Bailees                                                                                                           | 39   |
| 6.16   | Financial                  Covenants                                                                                                                            | 39   |
| 6.17   | ERISA                                                                                                                                                           | 40   |
| 6.18   | Material                  Contracts                                                                                                                             | 40   |
| 7      | EVENTS                  OF DEFAULT                                                                                                                              | 40   |
| 8      | THE                  LENDER GROUP’S RIGHTS AND REMEDIES                                                                                                   | 43   |
| 8.1    | Rights                  and Remedies                                                                                                                            | 43   |
| 8.2    | Remedies                  Cumulative                                                                                                                            | 43   |
| 9      | TAXES                  AND EXPENSES                                                                                                                             | 44   |
| 10     | WAIVERS;                  INDEMNIFICATION                                                                                                                       | 44   |
| 10.1   | Demand;                  Protest; etc                                                                                                                           | 44   |
| 10.2   | The                  Lender Group’s Liability for Collateral                                                                                              | 44   |
| 10.3   | Indemnification                                                                                                                                                 | 44   |
| 10.4   | Waiver                  of Consequential Damages, Etc                                                                                                           | 45   |
| 11     | NOTICES                                                                                                                                                         | 45   |
| 12     | CHOICE                  OF LAW AND VENUE; JURY TRIAL WAIVER                                                                                                     | 46   |
| 13     | ASSIGNMENTS                  AND PARTICIPATIONS; SUCCESSORS                                                                                                     | 47   |
| 13.1   | Assignments                  and Participations                                                                                                                 | 47   |
| 13.2   | Successors                                                                                                                                                      | 49   |
| 14     | AMENDMENTS;                  WAIVERS                                                                                                                            | 49   |
| 14.1   | Amendments                  and Waivers                                                                                                                         | 49   |
| 14.2   | Replacement                  of Holdout Lender                                                                                                                  | 50   |
| 14.3   | No                  Waivers; Cumulative Remedies                                                                                                                | 50   |
| 15     | AGENT;                  THE LENDER GROUP                                                                                                                        | 51   |
| 15.1   | Appointment                  and Authorization of Agent                                                                                                         | 51   |
| 15.2   | Delegation                  of Duties                                                                                                                           | 51   |
| 15.3   | Liability                  of Agent                                                                                                                             | 51   |
| 15.4   | Reliance                  by Agent                                                                                                                              | 52   |
| 15.5   | Notice                  of Default or Event of Default                                                                                                          | 52   |
| 15.6   | Credit                  Decision                                                                                                                                | 52   |
| 15.7   | Costs                  and Expenses; Indemnification                                                                                                            | 53   |
| 15.8   | Agent                  in Individual Capacity                                                                                                                   | 53   |
| 15.9   | Successor                  Agent                                                                                                                                | 53   |
| 15.1   | Lender                  in Individual Capacity                                                                                                                  | 54   |
| 15.11  | Withholding                  Taxes                                                                                                                              | 54   |
| 15.12  | Collateral                  Matters                                                                                                                             | 56   |
| 15.13  | Restrictions                  on Actions by Lenders; Sharing of Payments                                                                                        | 57   |
| 15.14  | Agency                  for Perfection                                                                                                                          | 57   |
| 15.15  | Payments                  by Agent to the Lenders                                                                                                               | 57   |
| 15.16  | Concerning                  the Collateral and Related Loan Documents                                                                                           | 57   |
| 15.17  | Field                  Audits and Examination Reports; Confidentiality; Disclaimers by                  Lenders;                  Other Reports and Information | 57   |
| 15.18  | Several                  Obligations; No Liability                                                                                                              | 58   |
| 15.19  | Bank                  Product Providers                                                                                                                         | 59   |
| 16     | GENERAL                  PROVISIONS                                                                                                                             | 59   |
| 16.1   | Effectiveness                                                                                                                                                   | 59   |
| 16.2   | Section                  Headings                                                                                                                               | 59   |
| 16.3   | Interpretation                                                                                                                                                  | 59   |
| 16.4   | Severability                  of Provisions                                                                                                                     | 59   |
| 16.5   | Counterparts;                  Electronic Execution                                                                                                             | 59   |
| 16.6   | Revival                  and Reinstatement of Obligations                                                                                                       | 59   |
| 16.7   | Confidentiality                                                                                                                                                 | 59   |
| 16.8   | Integration                                                                                                                                                     | 60   |
| 16.9   | PCA                  as Agent for Borrowers                                                                                                                     | 60   |
| 16.1   | Public                  Disclosure                                                                                                                              | 60   |

|   | -i- |   |
|--------|-----|--------|

----

**EXHIBITS      AND SCHEDULES**

| Exhibit                A-1      | Form                of Assignment and Acceptance                 |
|---------------------------------|------------------------------------------------------------------|
| Exhibit                C-1      | Form                of Compliance Certificate                    |
| Exhibit                L-1      | Form                of LIBOR Notice                              |
| Exhibit                L-2      | Form                of Loan Limit Certificate                    |
| Exhibit                S-1      | Form                of Solvency Certificate                      |
|                            |                                                             |
| Schedule                A-1     | Agent’s                Account                             |
| Schedule                C-1     | Commitments                                                      |
| Schedule                D-1     | Designated                Account                                |
| Schedule                P-1     | Permitted                Liens                                   |
| Schedule                P-2     | Permitted                Investments                             |
| Schedule                R-1     | Real                Property Collateral                          |
| Schedule                1.1     | Definitions                                                      |
| Schedule                2.7(a)  | Cash                Management Banks                             |
| Schedule                3.1     | Conditions                Precedent                              |
| Schedule                4.5     | Locations                of Inventory and Equipment              |
| Schedule                4.7(a)  | States                of Organization                            |
| Schedule                4.7(b)  | Chief                Executive Offices                           |
| Schedule                4.7(c)  | Organizational                Identification Numbers             |
| Schedule                4.7(d)  | Commercial                Tort Claims                            |
| Schedule                4.8     | Capitalization                of Credit Parties and Subsidiaries |
| Schedule                4.10    | Litigation                                                       |
| Schedule                4.13(a) | Certain                Employee Pension Benefit Plans            |
| Schedule                4.13(d) | Certain                Employee Health Benefit Plans             |
| Schedule                4.14    | Environmental                Matters                             |
| Schedule                4.15    | Intellectual                Property                             |
| Schedule                4.17    | Deposit                Accounts and Securities Accounts          |
| Schedule                4.19    | Permitted                Indebtedness                            |
| Schedule                4.20    | Material                Contracts                                |
| Schedule                5.2     | Collateral                Reporting                              |
| Schedule                5.3     | Financial                Statements, Reports, Certificates       |
| Schedule                5.8(b)  | Excluded                Insurance Claims                         |
| Schedule                7.14    | Certain                Material Contracts                        |