Document:

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                                                                     EXHIBIT 4.8

                                                           EXECUTION COUNTERPART

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                                U.S. $250,000,000
                            364-DAY CREDIT AGREEMENT

                           Dated as of April 30, 2003

                                      among

                         THE PEPSI BOTTLING GROUP, INC.

                               BOTTLING GROUP, LLC

                            THE LENDERS NAMED HEREIN

                              JPMORGAN CHASE BANK,
                                    as Agent,

                        CITIGROUP GLOBAL MARKETS INC. and
                         BANC OF AMERICA SECURITIES LLC,
                           as Joint Lead Arrangers and
                                  Book Managers

                                       and

                                 CITIBANK, N.A.,
                             BANK OF AMERICA, N.A.,
                         CREDIT SUISSE FIRST BOSTON, and
                          DEUTSCHE BANK SECURITIES INC.
                              as Syndication Agents

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                                                                     EXHIBIT 4.8

                                TABLE OF CONTENTS

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ARTICLE I  DEFINITIONS AND ACCOUNTING ....................................................         1
         SECTION 1.01.  Certain Defined Terms ............................................         1
         SECTION 1.02.  Computation of Time Periods ......................................        13
         SECTION 1.03.  Accounting Terms .................................................        13
ARTICLE II  AMOUNTS AND TERMS OF THE ADVANCES ............................................        13
         SECTION 2.01.  The Revolving Credit Advances ....................................        13
         SECTION 2.02.  Making the Revolving Credit Advances .............................        14
         SECTION 2.03.  The Competitive Bid Advances .....................................        15
         SECTION 2.04.  Fees .............................................................        18
         SECTION 2.05.  Termination, Reduction or Increase of the Commitments ............        19
         SECTION 2.06.  Repayment of Revolving Credit Advances, Evidence of
                 Indebtedness, Extension of Termination Date and Termed Out Loans ........        22
         SECTION 2.07.  Interest on Revolving Credit Advances ............................        24
         SECTION 2.08.  Interest Rate Determination ......................................        24
         SECTION 2.09.  Optional Conversion of Revolving Credit Advances .................        25
         SECTION 2.10.  Optional Prepayments of Revolving Credit Advances ................        26
         SECTION 2.11.  Increased Costs ..................................................        26
         SECTION 2.12.  Illegality .......................................................        27
         SECTION 2.13.  Payments and Computations ........................................        27
         SECTION 2.14.  Taxes ............................................................        28
         SECTION 2.15.  Sharing of Payments, Etc .........................................        31
         SECTION 2.16.  Use of Proceeds ..................................................        31
         SECTION 2.17.  Borrowings by Borrowing Subsidiaries; Substitution of Borrower ...        31
         SECTION 2.18.  Mitigation Obligations ...........................................        32
ARTICLE III  CONDITIONS TO EFFECTIVENESS AND ARTICLE II ..................................        33
         SECTION 3.01.  Conditions Precedent to Effectiveness of Sections 2.01 and 2.03 ..        33
         SECTION 3.02.  Conditions Precedent to Each Revolving Credit Borrowing ..........        35
         SECTION 3.03.  Conditions Precedent to Each Competitive Bid Borrowing ...........        35
         SECTION 3.04.  Determinations Under Section 3.01 ................................        36
ARTICLE IV  REPRESENTATIONS AND WARRANTIES OF THE LOAN PARTIES ...........................        36
         SECTION 4.01.  Representations and Warranties of the Loan Parties ...............        36
ARTICLE V  COVENANTS .....................................................................        37
         SECTION 5.01.  Affirmative Covenants ............................................        37
         SECTION 5.02.  Negative Covenants ...............................................        39
         SECTION 5.03.  Financial Covenants ..............................................        40
ARTICLE VI  EVENTS OF DEFAULT ............................................................        41
         SECTION 6.01.  Events of Default ................................................        41
ARTICLE VII  THE AGENT ...................................................................        43
ARTICLE VIII  MISCELLANEOUS ..............................................................        45
         SECTION 8.01.  Amendments, Etc ..................................................        45
         SECTION 8.02.  Notices, Etc .....................................................        45
         SECTION 8.03.  No Waiver; Remedies ..............................................        46
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         SECTION 8.04.  Costs and Expenses ...............................................        46
         SECTION 8.05.  Right of Set-off .................................................        47
         SECTION 8.06.  Binding Effect ...................................................        47
         SECTION 8.07.  Assignments and Participations ...................................        47
         SECTION 8.08.  Confidentiality ..................................................        51
         SECTION 8.09.  Governing Law ....................................................        51
         SECTION 8.10.  Execution in Counterparts ........................................        51
         SECTION 8.11.  Jurisdiction, Etc ................................................        51
         SECTION 8.12.  WAIVER OF JURY TRIAL .............................................        52
ARTICLE IX  COMPANY GUARANTEE ............................................................        52
         SECTION 9.01.  Company Guarantee ................................................        52
ARTICLE X  SUBSIDIARY GUARANTEE ..........................................................        54
         SECTION 10.01.  Subsidiary Guarantee ............................................        54
         SECTION 10.02.  Limitation of Guarantor's Liability .............................        55
</TABLE>

SCHEDULE 1     - LENDING OFFICES
SCHEDULE 2     - PRICING SCHEDULE

EXHIBIT A-1    - FORM OF NOTICE OF REVOLVING CREDIT BORROWING
EXHIBIT A-2    - FORM OF NOTICE OF COMPETITIVE BID BORROWING
EXHIBIT A-3    - FORM OF EXTENSION AGREEMENT
EXHIBIT B      - FORM OF ASSIGNMENT AND ACCEPTANCE
EXHIBIT C      - FORM OF OPINION OF GENERAL COUNSEL OF THE COMPANY
                 AND THE GUARANTOR
EXHIBIT D      - FORM OF DESIGNATION LETTER
EXHIBIT E      - FORM OF SUBSTITUTION LETTER
EXHIBIT F      - FORM OF TERMINATION LETTER

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<PAGE>

                                CREDIT AGREEMENT

                           Dated as of April 30, 2003

            THE PEPSI BOTTLING GROUP, INC., a Delaware corporation (the
"Company"), BOTTLING GROUP, LLC, a Delaware limited liability company (the
"Guarantor"), the banks, financial institutions and other institutional lenders
(the "Initial Lenders") listed on the signature pages hereof, and JPMORGAN CHASE
BANK ("JPMorgan"), as administrative agent (in such capacity, the "Agent") for
the Lenders (as hereinafter defined), agree as follows:

                                    ARTICLE I

                           DEFINITIONS AND ACCOUNTING

      SECTION 1.01. Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

            "Advance" means a Revolving Credit Advance or a Competitive Bid
Advance.

            "Affiliate" means, as to any Person, any other Person that, directly
or indirectly, controls, is controlled by or is under common control with such
Person or is a director or officer of such Person. For purposes of this
definition, the term "control" (including the terms "controlling", "controlled
by" and "under common control with") of a Person means the possession, direct or
indirect, of the power to vote 5% or more of the Voting Stock of such Person or
to direct or cause the direction of the management and policies of such Person,
whether through the ownership of Voting Stock, by contract or otherwise.

            "Agent's Account" means the account of the Agent maintained by the
Agent at JPMorgan with its office at 270 Park Avenue, New York, New York 10017.

            "Alternate Covenant Date" means any day on which the Index Debt of
Pepsi shall be rated less than A- by S&P or less than A3 by Moody's.

            "Applicable Facility Fee Rate" means, for any Rating Level Period,
the rate per annum set forth in Schedule 2 opposite the reference to such Rating
Level Period under the heading "Applicable Facility Fee Rate". Each change in
the Applicable Facility Fee Rate resulting from a Rating Level Change shall be
effective on the date of such Rating Level Change.

            "Applicable Lending Office" means, with respect to each Lender, such
Lender's Domestic Lending Office in the case of the Base Rate Advance and such
Lender's Eurodollar Lending Office in the case of a Eurodollar Rate Advance and,
in the case of a Competitive Bid

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                                      -2-

Advance, the office of such Lender notified by such Lender to the Agent as
Applicable Lending Office with respect to such Competitive Bid Advance.

            "Applicable Margin" means, with respect to any Eurodollar Rate
Advance, (i) until but not including the Term Out Date, for any Rating Level
Period, the rate per annum set forth in Schedule 2 opposite the reference to
such Rating Level Period under the heading "Applicable Margin" and (ii) from and
after the Term Out Date, for any Rating Level Period, the rate per annum set
forth in Schedule 2 opposite the reference to such Rating Level Period under the
heading "Term Out Applicable Margin". Each change in the Applicable Margin
resulting from a Rating Level Change shall be effective on the date of such
Rating Level Change.

            "Applicable Percentage" means, with respect to any Lender, the
percentage of the total Commitments represented by such Lender's Commitment. If
the Commitments have terminated or expired, the Applicable Percentages shall be
determined based upon the Commitments most recently in effect, giving effect to
any assignments.

            "Applicable Utilization Fee Rate" means, for any Rating Level
Period, the rate per annum set forth in Schedule 2 opposite the reference to
such Rating Level Period under the heading "Applicable Utilization Fee Rate".
Each change in the Applicable Utilization Fee Rate resulting from a Rating Level
Change shall be effective on the date of such Rating Level Change.

            "Assignment and Acceptance" means an assignment and acceptance
entered into by a Lender and an Eligible Assignee, and accepted by the Agent, in
substantially the form of Exhibit B hereto.

            "Base Rate" means a fluctuating interest rate per annum in effect
from time to time, which rate per annum shall at all times be equal to the
higher of:

            (a) the rate of interest announced publicly by JPMorgan in New York,
New York, from time to time, as JPMorgan's prime rate; and

            (b) 1/2 of one percent per annum above the Federal Funds Rate.

            "Base Rate Advance" means a Revolving Credit Advance that bears
interest as provided in Section 2.07(a).

            "Borrowers" means, at any time, collectively, the Company unless the
Substitution Date has occurred pursuant to Section 2.17, each Borrowing
Subsidiary and, on and after the Substitution Date has occurred pursuant to
Section 2.17, the Guarantor.

            "Borrowing" means a Revolving Credit Borrowing or a Competitive Bid
Borrowing.

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            "Borrowing Subsidiary" means any Subsidiary of the Company, as to
which a Designation Letter has been delivered to the Agent and as to which a
Termination Letter has not been delivered to the Agent in accordance with
Section 2.17.

            "Business Day" means a day of the year on which banks are not
required or authorized by law to close in New York City and, if the applicable
Business Day relates to any Eurodollar Rate Advances, on which dealings are
carried on in the London interbank market.

            "Change of Control" means (a) the acquisition of ownership, directly
or indirectly, beneficially or of record, by any Person or group (within the
meaning of the Securities Exchange Act of 1934, and the rules of the Securities
and Exchange Commission thereunder as in effect on the date hereof) other than
Pepsi, of shares representing more than 25% of the aggregate ordinary voting
power represented by the issued and outstanding capital stock of the Company;
(b) occupation of a majority of the seats (other than vacant seats) on the board
of directors of the Company by Persons who were neither (i) nominated by the
board of directors of the Company nor (ii) appointed by directors so nominated;
or (c) the acquisition of direct or indirect Control of the Company by any
Person or group other than Pepsi.

            "Commitment" has the meaning specified in Section 2.01.

            "Competitive Bid Advance" means an advance by a Lender to a Borrower
as part of a Competitive Bid Borrowing resulting from the auction bidding
procedure described in Section 2.03 and refers to a Fixed Rate Advance or a LIBO
Rate Advance.

            "Competitive Bid Borrowing" means a borrowing consisting of
simultaneous Competitive Bid Advances from each of the Lenders whose offer to
make one or more Competitive Bid Advances as part of such borrowing has been
accepted under the auction bidding procedure described in Section 2.03.

            "Competitive Bid Reduction" has the meaning specified in Section
2.01.

            "Confidential Information" means information that the Company
furnishes to the Agent or any Lender in a writing designated as confidential,
but does not include any such information that is or becomes generally available
to the public or that is or becomes rightfully available to the Agent or such
Lender from a source other than the Company.

            "Consolidated" refers to the consolidation of accounts in accordance
with GAAP. The Company shall cause the Guarantor at all times to remain a
Consolidated Subsidiary.

            "Consolidated EBITDA" means, for any period, Consolidated Net Income
for such period plus, without duplication and to the extent reflected as a
charge in the statement of such Consolidated Net Income for such period, the sum
of (a) income tax expense, (b) interest expense, amortization or writeoff of
debt discount with respect to Debt (including the Advances), (c) depreciation
and amortization expense, (d) amortization of intangibles (including, but not
limited to, goodwill) and organization costs, (e) any extraordinary expenses or
losses (including, whether or not otherwise includable as a separate item in the
statement of such Consolidated Net

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Income for such period, losses on sales of assets outside of the ordinary course
of business), and (f) any other non-cash charges, and minus, to the extent
included in the statement of such Consolidated Net Income for such period, the
sum of (a) any extraordinary income or gains (including, whether or not
otherwise includable as a separate item in the statement of such Consolidated
Net Income for such period, gains on the sales of assets outside of the ordinary
course of business) and (b) any other non-cash income, all as determined on a
Consolidated basis; in each case exclusive of the cumulative effect of foreign
currency gains or losses. For the purposes of calculating Consolidated EBITDA
for any period pursuant to any determination of the Consolidated Leverage Ratio,
if during such period the Company or any Subsidiary, including the Guarantor,
shall have made an acquisition or incurred or assumed (without duplication of
any Debt incurred to refinance such assumed Debt) any Debt, Consolidated EBITDA
for such period shall be calculated after giving pro forma effect thereto as if
such acquisition occurred and such Debt had been incurred or assumed or
refinanced on the first day of such period.

            "Consolidated Leverage Ratio" means, as at the last day of any
Fiscal Quarter, the ratio of (a) Consolidated Total Debt on such day to (b)
Consolidated EBITDA for the four consecutive fiscal quarters then ended (taken
as one accounting period).

            "Consolidated Net Income" means, for any period, the consolidated
net income (or loss) of the Company, its Restricted Subsidiaries and the
Guarantor, determined on a consolidated basis in accordance with GAAP, before
deduction of any minority interests in the Guarantor and excluding the
cumulative effect of any foreign currency gains or losses.

            "Consolidated Net Tangible Assets" means the total assets of the
Company, its Restricted Subsidiaries and the Guarantor (less applicable
depreciation, amortization, and other valuation reserves), except to the extent
resulting from write-ups of capital assets (other than writeups in connection
with accounting for acquisitions, in accordance with GAAP), less all current
liabilities (excluding intercompany liabilities) and all intangible assets of
the Company, its Restricted Subsidiaries and the Guarantor, all as set forth on
the then most recent Consolidated balance sheet of the Company, its Restricted
Subsidiaries and the Guarantor, prepared in accordance with GAAP, but before
deduction of any minority interests in the Guarantor and exclusive of any
foreign currency translation adjustments.

            "Consolidated Net Worth" means, as of any date of determination, all
items which in conformity with GAAP would be included under shareholders' equity
on a Consolidated balance sheet of the Company and its Subsidiaries, including
the Guarantor, at such date plus amounts representing mandatorily redeemable
preferred securities issued by Subsidiaries of the Company, including the
Guarantor, but before deduction of any minority interests in the Guarantor and
exclusive of any foreign currency translation adjustments.

            "Consolidated Total Debt" means, at any date (i) the aggregate
principal amount of all Debt of the Company and its Subsidiaries, including the
Guarantor minus (ii) the aggregate amount (not in excess of $500,000,000) of all
cash and cash equivalents of the Company and its Subsidiaries, in each case at
such date and determined on a Consolidated basis in accordance with GAAP.

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                                      -5-

            "Control" means the possession, directly or indirectly, of the power
to direct or cause the direction of the management or policies of a Person,
whether through the ability to exercise voting power, by contract or otherwise.
"Controlling" and "Controlled" have meanings correlative thereto.

            "Convert", "Conversion" and "Converted" each refers to a conversion
of Revolving Credit Advances of one Type into Revolving Credit Advances of the
other Type pursuant to Section 2.08 or 2.09.

            "Debt" of any Person means, without duplication, (a) all
indebtedness of such Person for borrowed money, (b) all obligations of such
Person for the deferred purchase price of property or services (other than trade
accounts payable arising in the ordinary course of business), (c) all
obligations of such Person evidenced by notes, bonds, debentures or other
similar instruments, (d) all obligations (other than trade accounts payable
arising in the ordinary course of business) of such Person created or arising
under any conditional sale or other title retention agreement with respect to
property acquired by such Person (even though the rights and remedies of the
seller or lender under such agreement in the event of default are limited to
repossession or sale of such property), (e) all obligations of such Person as
lessee under leases that have been or should be, in accordance with GAAP,
recorded as capital leases, (f) all Debt of others referred to in clauses (a)
through (c) above or clause (g) below guaranteed directly or indirectly in any
manner by such Person, or in effect guaranteed directly or indirectly by such
Person through (i) an agreement (1) to pay or purchase such Debt or to advance
or supply funds for the payment or purchase of such Debt, (2) to purchase, sell
or lease (as lessee or lessor) property, or to purchase or sell services,
primarily for the purpose of enabling the debtor to make payment of such Debt or
to assure the holder of such Debt against loss, (3) to supply funds to or in any
other manner invest in the debtor (including any agreement to pay for property
or services irrespective of whether such property is received or such services
are rendered) or (4) otherwise to assure a creditor against loss, or (ii) a
standby letter of credit and (g) all Debt referred to in clauses (a) through (f)
above secured by (or for which the holder of such Debt has an existing right,
contingent or otherwise, to be secured by) any Lien on property (including,
without limitation, accounts and contract rights) owned by such Person, even
though such Person has not assumed or become liable for the payment of such
Debt.

            "Debt to Capitalization Ratio" means at any time the ratio of (x)
Consolidated Total Debt to (y) the sum of (i) Consolidated Total Debt plus (ii)
Consolidated Net Worth.

            "Declining Lender" has the meaning assigned to that term in Section
2.06(c).

            "Default" means any Event of Default or any event that would
constitute an Event of Default but for the requirement that notice be given or
time elapse or both.

            "Designation Letter" has the meaning specified in Section 2.17(a).

            "Domestic Lending Office" means, with respect to any Lender, the
office of such Lender specified as its "Domestic Lending Office" opposite its
name on Schedule 1 hereto or in

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the Assignment and Acceptance pursuant to which it became a Lender, or such
other office of such Lender as such Lender may from time to time specify to the
Company and the Agent.

            "Effective Date" has the meaning specified in Section 3.01.

            "Eligible Assignee" means (i) a Lender; (ii) an Affiliate of a
Lender; (iii) a commercial bank organized under the laws of the United States,
or any State thereof, and having total assets in excess of $15,000,000,000 and a
combined capital and surplus of at least $1,000,000,000; (iv) a savings and loan
association or savings bank organized under the laws of the United States, or
any State thereof, and having total assets in excess of $15,000,000,000 and a
combined capital and surplus of at least $1,000,000,000; (v) a commercial bank
organized under the laws of any other country that is a member of the
Organization for Economic Cooperation and Development or has concluded special
lending arrangements with the International Monetary Fund associated with its
General Arrangements to Borrow or of the Cayman Islands, or a political
subdivision of any such country, and having total assets in excess of
$l5,000,000,000 and a combined capital and surplus of at least $1,000,000,000 so
long as such bank is acting through a branch or agency located in the United
States or in the country in which it is organized or another country that is
described in this clause (v); (vi) the central bank of any country that is a
member of the Organization for Economic Cooperation and Development; provided,
however, that each Person described in clauses (ii) through (vi) shall have a
short term public debt rating of not less than A by S&P or Moody's or shall be
approved by the Company; and (vii) any other Person approved by the Company,
such approval not to be unreasonably withheld or delayed; provided, however,
that neither the Company nor an Affiliate of the Company shall qualify as an
Eligible Assignee.

            "Environmental Law" means any federal, state, local or foreign
statute, law, ordinance, rule, regulation, code, order, judgment, decree or
judicial or agency interpretation, policy or guidance relating to the
environment, health, safety or Hazardous Materials.

            "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended from time to time, and the regulations promulgated and rulings issued
thereunder.

            "Eurodollar Lending Office" means, with respect to any Lender, the
office of such Lender specified as its "Eurodollar Lending Office" opposite its
name on Schedule 1 hereto or in the Assignment and Acceptance pursuant to which
it became a Lender (or, if no such office is specified, its Domestic Lending
Office), or such other office of such Lender as such Lender may from time to
time specify to the Company and the Agent.

            "Eurodollar Rate" means, for any Interest Period for each Eurodollar
Rate Advance comprising part of the same Revolving Credit Borrowing, an interest
rate per annum appearing on Page 3750 of the Telerate Service (or on any
successor or substitute page of such Service, or any successor to or substitute
for such Service, providing rate quotations comparable to those currently
provided on such page of such Service, as determined by the Agent from time to
time for purposes of providing quotations of interest rates applicable to Dollar
deposits in the London interbank market) as of 11:00 A.M. (London time) on the
date two Business Days prior to the first day of such Interest Period as the
rate for Dollar deposits having a term comparable to

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such Interest Period, or in the event such offered rate is not available from
said Page 3750, the average (rounded to the nearer whole multiple of 1/16 of 1%
per annum, if such average is not such a multiple) of the rate per annum at
which deposits in U.S. dollars are offered by the principal office of each of
the Reference Banks in London, England to prime banks in the London interbank
market at 11:00 A.M. (London time) two Business Days before the first day of
such Interest Period in an amount substantially equal to such Reference Bank's
Eurodollar Rate Advance comprising part of such Revolving Credit Borrowing to be
outstanding during such Interest Period and for a period equal to such Interest
Period. If the Eurodollar Rate does not appear on said Page 3750 (or any
successor page), the Eurodollar Rate for any Interest Period for each Eurodollar
Rate Advance comprising part of the same Revolving Credit Borrowing shall be
determined by the Agent on the basis of applicable rates furnished to and
received by the Agent from the Reference Banks two Business Days before the
first day of such Interest Period, subject, however, to the provisions of
Section 2.08.

            "Eurodollar Rate Advance" means a Revolving Credit Advance that
bears interest as provided in Section 2.07(b).

            "Events of Default" has the meaning specified in Section 6.01.

            "Extension Agreement" means an Extension Agreement substantially in
the form contained in Exhibit A-3 hereto.

            "Federal Funds Rate" means, for any period, a fluctuating interest
rate per annum 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 Agent from three Federal funds brokers of
recognized standing selected by it.

            "Fiscal Quarter" means a period of 13 or (or 14) weeks treated by
the Company as a fiscal quarter.

            "Fiscal Year" means the period of 52 (or 53) weeks ending on the
last Saturday of any calendar year and treated by the Company as its fiscal
year.

            "5-Year Facility" means the 5-Year Credit Agreement dated as of
April 30, 2003 among the Company, the Guarantor, certain banks, financial
institutions and other institutional lenders, and JPMorgan, as agent, as from
time to time amended.

            "Fixed Rate Advances" has the meaning specified in Section 2.03(b).

            "GAAP" means generally accepted accounting principles as in effect
from time to time, applied on a basis consistent (except for changes concurred
in by the Company's independent public accountants) with the most recent audited
Consolidated financial statements of the Company and its Subsidiaries delivered
to the Lenders.

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                                      -8-

            "Granting Lender" has the meaning specified in Section 8.07(e).

            "Guaranteed Party" has the meaning specified in Section 9.01.

            "Hazardous Materials" means petroleum and petroleum products,
byproducts or breakdown products, radioactive materials, asbestos-containing
materials, radon gas and any other chemicals, materials or substances
designated, classified or regulated as being "hazardous" or "toxic", or words of
similar import, under any federal, state, local or foreign statute, law,
ordinance, rule, regulation, code, order, judgment, decree or judicial or agency
interpretation, policy or guidance.

            "Index Debt" of any Person means senior, unsecured, long term
indebtedness for borrowed money of such Person that is not guaranteed by any
other Person (other than, in the case of the Company, the Guarantor) or subject
to any other credit enhancement.

            "Information Memorandum" means the information memorandum dated
March 17, 2003 used by the Agent in connection with the syndication of the
Commitments.

            "Interest Period" means, for each Eurodollar Rate Advance comprising
part of the same Revolving Credit Borrowing, the period commencing on the date
of such Eurodollar Rate Advance or the date of the Conversion of any Base Rate
Advance into such Eurodollar Rate Advance and ending on the last day of the
period selected by the Company pursuant to the provisions below and, thereafter,
each subsequent period commencing on the last day of the immediately preceding
Interest Period and ending on the last day of the period selected by the Company
pursuant to the provisions below. The duration of each such Interest Period
shall be one, two, three, six or, to the extent available from all the Lenders,
nine months, as the Company may, upon notice received by the Agent not later
than 11:00 A.M. (New York City time) on the third Business Day prior to the
first day of such Interest Period, select; provided, however, that:

            (1) the Company may not select any Interest Period that ends after
      the Termination Date (subject to Section 2.06(d) relating to Termed Out
      Loans);

            (2) Interest Periods commencing on the same date for Eurodollar Rate
      Advances comprising part of the same Revolving Credit Borrowing shall be
      of the same duration;

            (3) whenever the last day of any Interest Period would otherwise
      occur on a day other than a Business Day, the last day of such Interest
      Period shall be extended to occur on the next succeeding Business Day,
      provided, however, that, if such extension would cause the last day of
      such Interest Period to occur in the next following calendar month, the
      last day of such Interest Period shall occur on the next preceding
      Business Day; and

            (4) whenever the first day of any Interest Period occurs on a day of
      an initial calendar month for which there is no numerically corresponding
      day in the calendar month that succeeds such initial calendar month by the
      number of months equal to the

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                                      -9-

      number of months in such Interest Period, such Interest Period shall end
      on the last Business Day of such succeeding calendar month.

            "Internal Revenue Code" means the Internal Revenue Code of 1986, as
amended from time to time, and the regulations promulgated and rulings issued
thereunder.

            "Lenders" means the Initial Lenders and each Person that shall
become a party hereto pursuant to Sections 2.05(c), 2.06(d) or 8.07.

            "LIBO Rate Advances" has the meaning specified in Section 2.03(b).

            "Lien" means any lien, security interest or other charge or
encumbrance of any kind, or any other type of preferential arrangement,
including, without limitation, the lien or retained security title of a
conditional vendor.

            "Loan Documents" means, collectively, this Agreement, each
promissory note issued thereunder, each Designation Letter and each Termination
Letter.

            "Loan Party" has the meaning specified in Section 4.01.

            "Margin Stock" means margin stock within the meaning of Regulation U
of the Board of Governors of the Federal Reserve System.

            "Master Bottling Agreement" means the Master Bottling Agreement
dated March 30, 1999, between the Company and Pepsi or any successor or
replacement agreement that confers substantially the same benefits on the
Company as the Master Bottling Agreement conferred on the date hereof.

            "Material Adverse Change" means any material adverse change in the
financial condition, operations or properties of the Company or the Company and
its Subsidiaries (including the Guarantor) taken as a whole.

            "Material Adverse Effect" means a material adverse effect on (a) the
financial condition, operations or properties of the Company and its
Subsidiaries (including the Guarantor) taken as a whole, (b) the rights and
remedies of the Agent or any Lender under this Agreement or any promissory note
or (c) the ability of the Company to perform its obligations under this
Agreement or any promissory note.

            "Material Subsidiary" means each Subsidiary of the Company which is
a "significant subsidiary" as that term is defined in Rule 1-02(w) of the
Regulation S-X under the Securities Act of 1933, as amended, as such rule is in
effect as of the date hereof.

            "Moody's" means Moody's Investors Service, Inc. and any successor
thereto.

            "Moody's Rating" means, at any time, the rating of the Company's
Index Debt then most recently announced by Moody's.

                            364-Day Credit Agreement

<PAGE>
                                      -10-

            "New Lender" means, for purposes of Section 2.05(c), an Eligible
Assignee (which may be a Lender) selected by the Company with (in the case of a
New Lender that is not already a Lender) prior consultation with the Agent.

            "Notice of Competitive Bid Borrowing" has the meaning specified in
Section 2.03(b).

            "Notice of Revolving Credit Borrowing" has the meaning specified in
Section 2.02(a).

            "Pepsi" means PepsiCo, Inc., a North Carolina corporation.

            "Person" means an individual, partnership, corporation (including a
business trust), joint stock company, trust, unincorporated association, joint
venture, limited liability company or other entity, or a government or any
political subdivision or agency thereof.

            "Principal Property" means any single manufacturing or processing
plant, office building, or warehouse owned or leased by the Company, a
Restricted Subsidiary or the Guarantor other than a plant, warehouse, office
building, or portion thereof which, in the opinion of the Company's Board of
Directors, is not of material importance to the business conducted by the
Company, its Restricted Subsidiaries and the Guarantor as an entirety.

            "Rating" means the Moody's Rating or the S&P Rating, as the case may
be.

            "Rating Level Change" means a change in the Moody's Rating or the
S&P Rating that results in a change from one Rating Level Period to another,
which Rating Level Change shall be deemed to take effect on the date on which
the relevant change in rating is first announced by Moody's or S&P.

            "Rating Level Period" means a Rating Level 1 Period, a Rating Level
2 Period, a Rating Level 3 Period, a Rating Level 4 Period or a Rating Level 5
Period; provided that:

            (i)   "Rating Level 1 Period" means a period during which the
                  Moody's Rating is at or above A2 or the S&P Rating is at or
                  above A;

            (ii)  "Rating Level 2 Period" means a period that is not a Rating
                  Level 1 Period, during which the Moody's Rating is at or above
                  A3 or the S&P Rating is at or above A-;

            (iii) "Rating Level 3 Period" means a period that is not a Rating
                  Level 1 Period or a Rating Level 2 Period, during which the
                  Moody's Rating is at or above Baa1 or the S&P Rating is at or
                  above BBB+;

            (iv)  "Rating Level 4 Period" means a period that is not a Rating
                  Level 1 Period, a Rating Level 2 Period or a Rating Level 3
                  Period, during which

                            364-Day Credit Agreement

<PAGE>
                                      -11-

                  the Moody's Rating is at or above Baa2 or the S&P Rating is at
                  or above BBB; and

            (v)   "Rating Level 5 Period" means a period that is not a Rating
                  Level 1 Period, a Rating Level 2 Period, a Rating Level 3
                  Period or a Rating Level 4 Period;

and provided, further, that if the Moody's rating and the S&P Rating differ by
more than one Rating Level, then the applicable Rating Level Period shall be one
Rating Level lower than the Rating Level resulting from the application of the
higher of such ratings (for which purpose Rating Level 1 is the highest and
Rating Level 5 is the lowest); and provided, further, that any period during
which there is no Moody's Rating or there is no S&P Rating shall be a Rating
Level 5 Period.

            "Reference Banks" means JPMorgan, Citibank, N.A. and Bank of
America, N.A. (and any successors thereof).

            "Related Parties" means, with respect to any specified Person, such
Person's Affiliates and the respective directors, officers, employees, agents
and advisors of such Person and such Person's Affiliates.

            "Register" has the meaning specified in Section 8.07(d).

            "Required Lenders" means at any time Lenders owed more than 50% of
the then aggregate unpaid principal amount of the Revolving Credit Advances
(excluding Competitive Bid Advances) owing to Lenders, or, if no such principal
amount is then outstanding, Lenders having more than 50% of the aggregate amount
of the Commitments.

            "Restricted Subsidiary" means at any time any Subsidiary of the
Company except a Subsidiary which is at the time an Unrestricted Subsidiary.

            "Revolving Credit Advance" means an advance by a Lender to a
Borrower as part of a Revolving Credit Borrowing and refers to a Base Rate
Advance or a Eurodollar Rate Advance (each of which shall be a "Type" of
Revolving Credit Advance).

            "Revolving Credit Borrowing" means a borrowing consisting of
simultaneous Revolving Credit Advances of the same Type made by each of the
Lenders pursuant to Section 2.01.

            "S&P" means Standard & Poors Rating Services or any successor
thereto.

            "S&P Rating" means, at any time, the rating of the Company's Index
Debt then most recently announced by S&P.

            "SPC" has the meaning specified in Section 8.07(e).

                            364-Day Credit Agreement

<PAGE>
                                      -12-

            "Subsidiary" of any Person means any corporation, partnership, joint
venture, limited liability company, trust or estate of which (or in which) more
than 50% of (a) the issued and outstanding capital stock having ordinary voting
power to elect a majority of the Board of Directors of such corporation
(irrespective of whether at the time capital stock of any other class or classes
of such corporation shall or might have voting power upon the occurrence of any
contingency), (b) the interest in the capital or profits of such partnership or
joint venture or (c) the beneficial interest in such trust or estate is at the
time directly or indirectly owned or controlled by such Person, by such Person
and one or more of its other Subsidiaries or by one or more of such Person's
other Subsidiaries.

            "Substitution Date" has the meaning specified in Section 2.17(c).

            "Substitution Letter" has the meaning specified in Section 2.17(c).

            "Term Out Date" has the meaning assigned to that term in Section
2.06(d).

            "Termed Out Loan" has the meaning assigned to that term in Section
2.06(d).

            "Termination Date" means April 28, 2004 or, if earlier, the date of
termination in whole of the Commitments pursuant to Section 2.05(a) or 6.01 or,
in the case of any Lender whose Commitment is extended pursuant to Section
2.06(c), the date to which such Commitment is extended; provided in each case
that if any such date is not a Business Day, the relevant Termination Date of
such Lender shall be the immediately preceding Business Day.

            "Termination Letter" has the meaning specified in Section 2.17(b).

            "Type" has the meaning specified in the definition of "Revolving
Credit Advance."

            "Unrestricted Subsidiary" means (a) any Subsidiary of the Company
(not at the time designated a Restricted Subsidiary) (i) the major part of whose
business consists of finance, banking, credit, leasing, insurance, financial
services, or other similar operations, or any continuation thereof, (ii)
substantially all the assets of which consist of the capital stock of one or
more such Subsidiaries, or (iii) designated as such by the Company's Board of
Directors and (b) the Guarantor. Any Subsidiary designated as a Restricted
Subsidiary may be designated as an Unrestricted Subsidiary.

            "Voting Stock" means capital stock issued by a corporation, or
equivalent interests in any other Person, the holders of which are ordinarily,
in the absence of contingencies, entitled to vote for the election of directors
(or persons performing similar actions) of such Person, even if the right so to
vote has been suspended by the happening of such a contingency.

                            364-Day Credit Agreement

<PAGE>
                                      -13-

      SECTION 1.02. Computation of Time Periods. In this Agreement in the
computation of periods of time from a specified date to a later specified date,
the word "from" means "from and including" and the words "to" and "until" each
mean "to but excluding".

      SECTION 1.03. 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; provided that, if the
Company notifies the Agent that the Company wishes to amend any provisions
hereof to eliminate the effect of any change in GAAP (or if the Agent notifies
the Company that the Required Lenders wish to amend any provision hereof for
such purpose), then such provision shall be applied on the basis of GAAP in
effect immediately before the relevant change in GAAP became effective, until
either such notice is withdrawn or such provision is amended in a manner
satisfactory to the Company and the Required Lenders.

                                   ARTICLE II

                        AMOUNTS AND TERMS OF THE ADVANCES

      SECTION 2.01. The Revolving Credit Advances. Each Lender severally agrees,
on the terms and conditions hereinafter set forth, to make Revolving Credit
Advances to the Company and any Borrowing Subsidiary from time to time on any
Business Day during the period from the Effective Date until the Termination
Date in an aggregate amount not to exceed at any time outstanding the amount set
forth opposite such Lender's name on the signature pages hereof or, if such
Lender has entered into any Assignment and Acceptance, set forth for such Lender
in the Register maintained by the Agent pursuant to Section 8.07(d), as such
amount may be reduced pursuant to Section 2.05(a) or increased pursuant to
Section 2.05(c) (such Lender's "Commitment"), provided that the aggregate amount
of the Commitments of the Lenders shall be deemed used from time to time to the
extent of the aggregate amount of the Competitive Bid Advances then outstanding
and such deemed use of the aggregate amount of the Commitments shall be
allocated among the Lenders ratably according to their respective Commitments
(such deemed use of the aggregate amount of the Commitments being a "Competitive
Bid Reduction"). Each Revolving Credit Borrowing shall be in an aggregate amount
of $5,000,000 or an integral multiple of $1,000,000 in excess thereof (or, if
less, (i) an aggregate amount equal to the amount by which the aggregate amount
of a proposed Competitive Bid Borrowing requested by the Company exceeds the
aggregate amount of Competitive Bid Advances offered to be made by the Lenders
and accepted by the Company in respect of such Competitive Bid Borrowing, if
such Competitive Bid Borrowing is made on the same date as such Revolving Credit
Borrowing or (ii) the aggregate amount of the unused Commitments, after giving
effect to any Competitive Bid Reductions then in effect) and shall consist of
Revolving Credit Advances of the same Type made on the same day by the Lenders
ratably according to their respective Commitments. Within the limits of each
Lender's Commitment, each Borrower may borrow under this Section 2.01, prepay
pursuant to Section 2.10 and (other than in the case of a Termed Out Loan)
reborrow under this Section 2.01.

                            364-Day Credit Agreement

<PAGE>
                                      -14-

      SECTION 2.02. Making the Revolving Credit Advances.

            (a) Each Revolving Credit Borrowing shall be made on notice, given
not later than 11:00 A.M. (New York City time) on the third Business Day prior
to the date of the proposed Revolving Credit Borrowing in the case of a
Revolving Credit Borrowing consisting of Eurodollar Rate Advances, or the date
of the proposed Revolving Credit Borrowing in the case of a Revolving Credit
Borrowing consisting of Base Rate Advances, by the Company (on its own behalf
and on behalf of any Borrowing Subsidiary) to the Agent, which shall give to
each Lender prompt notice thereof by telecopier or telex. Each such notice of a
Revolving Credit Borrowing (a "Notice of Revolving Credit Borrowing") shall be
by telecopier or telex, confirmed promptly in writing, in substantially the form
of Exhibit A-1 hereto, specifying therein the requested (i) date of such
Revolving Credit Borrowing, (ii) Type of Advances comprising such Revolving
Credit Borrowing, (iii) aggregate amount of such Revolving Credit Borrowing,
(iv) in the case of a Revolving Credit Borrowing consisting of Eurodollar Rate
Advances, initial Interest Period for each such Revolving Credit Advance and (v)
the name of the relevant Borrower (which shall be the Company or a Borrowing
Subsidiary). Each Lender shall, before 11:00 A.M. (New York City time), in the
case of a Revolving Credit Borrowing consisting of Eurodollar Rate Advances, or
before 1:00 P.M. (New York City time), in the case of a Revolving Credit
Borrowing consisting of Base Rate Advances, on the date of such Revolving Credit
Borrowing, make available for the account of its Applicable Lending Office to
the Agent at the Agent's Account, in same day funds, such Lender's ratable
portion of such Revolving Credit Borrowing. After the Agent's receipt of such
funds and upon fulfillment of the applicable conditions set forth in Article
III, the Agent will make such same day funds available to the relevant Borrower
at such Borrower's account at the Agent's address referred to in Section 8.02.

            (b) Anything in subsection (a) above to the contrary
notwithstanding, (i) the Company may not select Eurodollar Rate Advances for any
Revolving Credit Borrowing if the aggregate amount of such Revolving Credit
Borrowing is less than $10,000,000 or if the obligation of the Lenders to make
Eurodollar Rate Advances shall then be suspended pursuant to Section 2.08 and
(ii) the Eurodollar Rate Advances may not be outstanding as part of more than
six separate Revolving Credit Borrowings.

            (c) Each Notice of Revolving Credit Borrowing shall be irrevocable
and binding on the relevant Borrower. In the case of any Revolving Credit
Borrowing that the related Notice of Revolving Credit Borrowing specifies is to
be comprised of Eurodollar Rate Advances, the Company shall indemnify each
Lender against any loss, cost or expense incurred by such Lender as a result of
any failure to fulfill on or before the date specified in such Notice of
Revolving Credit Borrowing for such Revolving Credit Borrowing the applicable
conditions set forth in Article III, including, without limitation, any loss,
cost or expense incurred by reason of the liquidation or reemployment of
deposits or other funds acquired by such Lender to fund the Revolving Credit
Advance to be made by such Lender as part of such Revolving Credit Borrowing
when such Revolving Credit Advance, as a result of such failure, is not made on
such date.

            (d) Unless the Agent shall have received notice from a Lender prior
to the date of any Revolving Credit Borrowing that such Lender will not make
available to the Agent such

                            364-Day Credit Agreement

<PAGE>
                                      -15-

Lender's ratable portion of such Revolving Credit Borrowing, the Agent may
assume that such Lender has made such portion available to the Agent on the date
of such Revolving Credit Borrowing in accordance with subsection (a) of this
Section 2.02 and the Agent may, in reliance upon such assumption, make available
to the relevant Borrower on such date a corresponding amount. If and to the
extent that such Lender shall not have so made such ratable portion available to
the Agent, such Lender and such Borrower severally agree to repay to the Agent
forthwith on demand such corresponding amount together with interest thereon,
for each day from the date such amount is made available to such Borrower until
the date such amount is repaid to the Agent, at (i) in the case of a Borrower,
the interest rate applicable at the time to Revolving Credit Advances comprising
such Revolving Credit Borrowing and (ii) in the case of such Lender, the Federal
Funds Rate. If such Lender shall repay to the Agent such corresponding amount,
such amount so repaid shall constitute such Lender's Revolving Credit Advance as
part of such Revolving Credit Borrowing for purposes of this Agreement and shall
be made available in same day funds to the relevant Borrower's account at the
Agent's address referred to in Section 8.02.

            (e) The failure of any Lender to make the Revolving Credit Advance
to be made by it as part of any Revolving Credit Borrowing shall not relieve any
other Lender of its obligation, if any, hereunder to make its Revolving Credit
Advance on the date of such Revolving Credit Borrowing, but no Lender shall be
responsible for the failure of any other Lender to make the Revolving Credit
Advance to be made by such other Lender on the date of any Revolving Credit
Borrowing.

      SECTION 2.03. The Competitive Bid Advances.

            (a) Each Lender severally agrees that each Borrower may make
Competitive Bid Borrowings under this Section 2.03 from time to time on any
Business Day during the period from the date hereof until the date occurring 7
days prior to the Termination Date in the manner set forth below; provided that,
following the making of each Competitive Bid Borrowing, the aggregate amount of
the Advances then outstanding shall not exceed the aggregate amount of the
Commitments of the Lenders (computed without regard to any Competitive Bid
Reduction).

            (b) The Company (on its own behalf and on behalf of any Borrowing
Subsidiary) may request a Competitive Bid Borrowing under this Section 2.03 by
delivering to the Agent, by telecopier or telex, confirmed promptly in writing,
a notice of a Competitive Bid Borrowing (a "Notice of Competitive Bid
Borrowing"), in substantially the form of Exhibit A-2 hereto, specifying therein
(u) the date of such proposed Competitive Bid Borrowing, (v) the aggregate
amount of such proposed Competitive Bid Borrowing, (w) the maturity date for
repayment of each Competitive Bid Advance to be made as part of such Competitive
Bid Borrowing (which maturity date may not be earlier than the date occurring 7
days after the date of such Competitive Bid Borrowing or later than the
Termination Date), (x) the interest payment date or dates relating thereto, (y)
the name of the Borrower, and (z) any other terms to be applicable to such
Competitive Bid Borrowing, not later than 10:00 A.M. (New York City time) (A) at
least one Business Day prior to the date of the proposed Competitive Bid
Borrowing, if the Company shall specify in the Notice of Competitive Bid
Borrowing that the rates of interest to be offered by the Lenders

                            364-Day Credit Agreement

<PAGE>
                                      -16-

shall be fixed rates per annum (the Advances comprising any such Competitive Bid
Borrowing being referred to herein as "Fixed Rate Advances") and (B) at least
four Business Days prior to the date of the proposed Competitive Bid Borrowing,
if the Company shall instead specify in the Notice of Competitive Bid Borrowing
another basis to be used by the Lenders in determining the rates of interest to
be offered by them (the Advances comprising such Competitive Bid Borrowing being
referred to herein as "LIBO Rate Advances"). The Agent shall in turn promptly
notify each Lender of each request for a Competitive Bid Borrowing received by
it from the Company by sending such Lender a copy of the related Notice of
Competitive Bid Borrowing.

            (c) Each Lender may, if, in its sole discretion, it elects to do so,
irrevocably offer to make one or more Competitive Bid Advances to the relevant
Borrower as part of such proposed Competitive Bid Borrowing at a rate or rates
of interest specified by such Lender in its sole discretion, by notifying the
Agent (which shall give prompt notice thereof to the Company), before 10:00 A.M.
(New York City time) on the date of such proposed Competitive Bid Borrowing, in
the case of a Competitive Bid Borrowing consisting of Fixed Rate Advances, and
three Business Days before the date of such proposed Competitive Bid Borrowing,
in the case of a Competitive Bid Borrowing consisting of LIBO Rate Advances, of
the minimum amount and maximum amount of each Competitive Bid Advance which such
Lender would be willing to make as part of such proposed Competitive Bid
Borrowing (which amounts may, subject to the proviso to the first sentence of
Section 2.03(a), exceed such Lender's Commitment, if any), the rate or rates of
interest therefor and such Lender's Applicable Lending Office with respect to
such Competitive Bid Advance; provided that if the Agent in its capacity as a
Lender shall, in its sole discretion, elect to make any such offer, it shall
notify the Company of such offer before 9:00 A.M. (New York City time) on the
date on which notice of such election is to be given to the Agent by the other
Lenders. If any Lender shall elect not to make such an offer, such Lender shall
so notify the Agent, before 10:00 A.M. (New York City time) on the date on which
notice of such election is to be given to the Agent by the other Lenders, and
such Lender shall not be obligated to, and shall not, make any Competitive Bid
Advance as part of such Competitive Bid Borrowing; provided that the failure by
any Lender to give such notice shall not cause such Lender to be obligated to
make any Competitive Bid Advance as part of such proposed Competitive Bid
Borrowing.

            (d) The Company shall, in turn, before 11:00 A.M. (New York City
time) on the date of such proposed Competitive Bid Borrowing, in the case of a
Competitive Bid Borrowing consisting of Fixed Rate Advances, and before 1:00
P.M. (New York City time) three Business Days before the date of such proposed
Competitive Bid Borrowing, in the case of a Competitive Bid Borrowing consisting
of LIBO Rate Advances, either:

                  (x) cancel such Competitive Bid Borrowing by giving the Agent
            notice to that effect, or

                  (y) accept one or more of the offers made by any Lender or
            Lenders pursuant to paragraph (c) above, by giving notice to the
            Agent of the amount of each Competitive Bid Advance (which amount
            shall be equal to or greater than the minimum amount, and equal to
            or less than the maximum amount, notified to the Company by the
            Agent on behalf of such Lender for such Competitive Bid Ad-

                            364-Day Credit Agreement

<PAGE>
                                      -17-

            vance pursuant to paragraph (c) above) to be made by each Lender as
            part of such Competitive Bid Borrowing, and reject any remaining
            offers made by Lenders pursuant to paragraph (c) above by giving the
            Agent notice to that effect. If the Company accepts any offers made
            by Lenders pursuant to paragraph (c) above, such offers shall be
            accepted in the order of the lowest to highest interest rates or, if
            two or more Lenders offer to make Competitive Bid Advances at the
            same interest rate, such offers, if any, shall be accepted in
            proportion to the amount offered by each such Lender at such
            interest rate notwithstanding any minimum specified by such Lender
            in its notice given pursuant to paragraph (c) above. The Company may
            not accept offers in excess of the amount specified in accordance
            with paragraph (a) above.

            (e) If the Company notifies the Agent that such Competitive Bid
Borrowing is cancelled pursuant to paragraph (d)(x) above, the Agent shall give
prompt notice thereof to the Lenders and such Competitive Bid Borrowing shall
not be made.

            (f) If the Company accepts one or more of the offers made by any
Lender or Lenders pursuant to paragraph (d)(y) above, the Agent shall in turn
promptly notify (A) each Lender that has made an offer as described in paragraph
(c) above, of the date and aggregate amount of such Competitive Bid Borrowing
and whether or not any offer or offers made by such Lender pursuant to paragraph
(c) above have been accepted by the Company, (B) each Lender that is to make a
Competitive Bid Advance as part of such Competitive Bid Borrowing, of the amount
of each Competitive Bid Advance to be made by such Lender as part of such
Competitive Bid Borrowing, and (C) each Lender that is to make a Competitive Bid
Advance as part of such Competitive Bid Borrowing, upon receipt, that the Agent
has received forms of documents appearing to fulfill the applicable conditions
set forth in Article III. Each Lender that is to make a Competitive Bid Advance
as part of such Competitive Bid Borrowing shall, before 12:00 noon (New York
City time) on the date of such Competitive Bid Borrowing specified in the notice
received from the Agent pursuant to clause (A) of the preceding sentence or any
later time when such Lender shall have received notice from the Agent pursuant
to clause (C) of the preceding sentence, make available for the account of its
Applicable Lending Office to the Agent at the Agent's Account, in same day
funds, such Lender's portion of such Competitive Bid Borrowing. Upon fulfillment
of the applicable conditions set forth in Article III and after receipt by the
Agent of such funds, the Agent will make such same day funds available to the
relevant Borrower at such Borrower's account at the Agent's address referred to
in Section 8.02. Promptly after each Competitive Bid Borrowing the Agent will
notify each Lender of the amount of the Competitive Bid Borrowing, the
consequent Competitive Bid Reduction and the dates upon which such Competitive
Bid Reduction commenced and will terminate.

            (g) Each Competitive Bid Borrowing shall be in an aggregate amount
of $5,000,000 or an integral multiple of $1,000,000 in excess thereof and,
following the making of each Competitive Bid Borrowing, the Company shall be in
compliance with the limitation set forth in the proviso to the first sentence of
paragraph (a) above.

            (h) Within the limits and on the conditions set forth in this
Section 2.03, each Borrower may from time to time borrow under this Section
2.03, repay or prepay pursuant to

                            364-Day Credit Agreement

<PAGE>
                                      -18-

subsection (j) below, and reborrow under this Section 2.03, provided that a
Competitive Bid Borrowing shall not be made within three Business Days of the
date of any other Competitive Bid Borrowing.

            (i) Each Borrower shall repay to the Agent for the account of each
Lender that has made a Competitive Bid Advance to such Borrower, on the maturity
date of such Competitive Bid Advance (such maturity date being that specified by
the Company for repayment of such Competitive Bid Advance in the related Notice
of Competitive Bid Borrowing delivered pursuant to paragraph (b) above and
provided in the promissory note, if any, evidencing such Competitive Bid
Advance), the then unpaid principal amount of such Competitive Bid Advance. No
Borrower shall have any right to prepay any principal amount of any Competitive
Bid Advance unless (x) such Borrower obtains the prior written consent of the
Lender which made such Competitive Bid Advance, or (y), such prepayment is made
on the terms, specified by the Company for such Competitive Bid Advance in the
related Notice of Competitive Bid Borrowing delivered pursuant to paragraph (b)
above and set forth in the promissory note, if any, evidencing such Competitive
Bid Advance.

            (j) Each Borrower shall pay interest on the unpaid principal amount
of each Competitive Bid Advance to such Borrower from the date of such
Competitive Bid Advance to the date the principal amount of such Competitive Bid
Advance is repaid in full, at the rate of interest for such Competitive Bid
Advance specified by the Lender making such Competitive Bid Advance in its
notice with respect thereto delivered pursuant to paragraph (c) above, payable
on the interest payment date or dates specified by such Borrower for such
Competitive Bid Advance in the related Notice of Competitive Bid Borrowing
delivered pursuant to paragraph (b) above, as provided in the promissory note,
if any, evidencing such Competitive Bid Advance.

            (k) At its option, the Company (on its own behalf and on behalf of
any Borrower) may request a Competitive Bid Borrowing directly from the Lenders;
provided that it follows the procedures set forth in this Section 2.03 and
promptly delivers, by telecopier or telex, a copy of the Notice of Competitive
Bid Borrowing and notice in writing of the results of such request to the Agent.

            (l) The indebtedness of each Borrower resulting from each
Competitive Bid Advance made to such Borrower as part of a Competitive Bid
Borrowing shall, if requested by the applicable Lender, be evidenced by a
separate promissory note of such Borrower payable to the order of the Lender
making such Competitive Bid Advance.

      SECTION 2.04. Fees.

            (a) Facility Fee. The Company agrees to pay to the Agent for the
account of each Lender a facility fee on the amount of such Lender's Commitment
irrespective of usage, from the Effective Date in the case of each Initial
Lender and from the effective date specified in the Assignment and Acceptance
pursuant to which it became a Lender in the case of each other Lender until the
Termination Date (on a daily basis), at the Applicable Facility Fee Rate,
payable

                            364-Day Credit Agreement

<PAGE>
                                      -19-

in arrears quarterly on the last day of each March, June, September and December
and on the Termination Date, commencing June 30, 2003.

            (b) Agent's Fees. The Company shall pay to the Agent for its own
account such fees as may from time to time be agreed between the Company and the
Agent.

            (c) Utilization Fees. The Company shall pay to the Agent for the
account of each Lender a utilization fee on the aggregate outstanding principal
amount of such Lender's Advances for each day on which the aggregate outstanding
amount of the Advances exceeds 33-1/3% of the aggregate Commitments, from the
Effective Date in the case of each Initial Lender and from the effective date
specified in the Assignment and Acceptance pursuant to which it became a Lender
in the case of each other Lender until the Termination Date (on a daily basis),
at the Applicable Utilization Fee rate, payable on each day on which interest is
payable under Section 2.07, and on the Termination Date.

      SECTION 2.05. Termination, Reduction or Increase of the Commitments.

            (a) The Company shall have the right, upon at least three Business
Days' notice to the Agent, to terminate in whole or reduce ratably in part the
unused portions of the respective Commitments of the Lenders, provided that each
partial reduction shall be in the aggregate amount of $5,000,000 or an integral
multiple of $1,000,000 in excess thereof and provided further that (x) the
aggregate amount of the Commitments of the Lenders shall not be reduced to an
amount that is less than the aggregate principal amount of the Advances then
outstanding, and (y) once terminated, a portion of a Commitment shall not be
reinstated except pursuant to Section 2.05(c).

            (b) If any Lender shall make a demand under Section 2.11 or 2.14 or
if the obligation of any Lender to make Eurodollar Rate Advances shall have been
suspended pursuant to Section 2.12, the Company shall have the right, upon at
least ten Business Days' notice, to terminate in full the Commitment of such
Lender or to demand that such Lender assign to one or more Eligible Assignees
all of its rights and obligations under this Agreement in accordance with
Section 8.07. If the Company shall elect to terminate in full the Commitment of
any Lender pursuant to this Section 2.05(b), the Company shall pay to such
Lender, on the effective date of such Commitment termination, an amount equal to
the aggregate outstanding principal amount of the Advances owing to such Lender,
together with accrued interest thereon to the date of payment of such principal
amount and all other amounts payable to such Lender under this Agreement,
whereupon such Lender shall cease to be a party hereto.

            (c) (i) Not more than once in any calendar year, the Company may
propose to increase the aggregate amount of the Commitments by an aggregate
amount of $25,000,000 or an integral multiple of $1,000,000 in excess thereof (a
"Proposed Aggregate Commitment Increase") in the manner set forth below,
provided that:

                            364-Day Credit Agreement

<PAGE>
                                      -20-

            (1) no Default shall have occurred and be continuing either as of
      the date on which the Company shall notify the Agent of its request to
      increase the aggregate amount of the Commitments or as of the related
      Increase Date (as hereinafter defined); and

            (2) after giving effect to any such increase, the aggregate amount
      of the Commitments shall not exceed $500,000,000.

            (ii) The Company may request an increase in the aggregate amount of
the Commitments by delivering to the Agent a notice (an "Increase Notice"; the
date of delivery thereof to the Agent being the "Increase Notice Date")
specifying (1) the Proposed Aggregate Commitment Increase, (2) the proposed date
(the "Increase Date") on which the Commitments would be so increased (which
Increase Date may not be fewer than 30 nor more than 60 days after the Increase
Notice Date) and (3) the New Lenders, if any, to whom the Company desires to
offer the opportunity to commit to all or a portion of the Proposed Aggregate
Commitment Increase. The Agent shall in turn promptly notify each Lender of the
Company's request by sending each Lender a copy of such notice.

            (iii) Not later than the date five days after the Increase Notice
Date, the Agent shall notify each New Lender, if any, identified in the related
Increase Notice of the opportunity to commit to all or any portion of the
Proposed Aggregate Commitment Increase. Each such New Lender may irrevocably
commit to all or a portion of the Proposed Aggregate Commitment Increase (such
New Lender's "Proposed New Commitment") by notifying the Agent (which shall give
prompt notice thereof to the Company) before 11:00 A.M. (New York City time) on
the date that is 10 days after the Increase Notice Date; provided that:

            (1) the Proposed New Commitment of each New Lender shall be in an
      amount not less than $25,000,000; and

            (2) each New Lender that submits a Proposed New Commitment shall
      enter into an agreement in form and substance satisfactory to the Company
      and the Agent pursuant to which such New Lender shall undertake a
      Commitment (and, if any such New Lender is already a Lender, its
      Commitment shall be in addition to such Lender's Commitment hereunder on
      such date), and shall pay to the Agent a processing and recordation fee of
      $3,500.

            (iv) If the aggregate Proposed New Commitments of all of the New
Lenders shall be less than the Proposed Aggregate Commitment Increase, then
(unless the Company otherwise requests) the Agent shall, on or prior to the date
that is 15 days after the Increase Notice Date, notify each Lender of the
opportunity to so commit to all or any portion of the Proposed Aggregate
Commitment Increase not committed to by New Lenders pursuant to Section
2.05(c)(iii). Each Lender may, if, in its sole discretion, it elects to do so,
irrevocably offer to commit to all or a portion of such remainder (such Lender's
"Proposed Increased Commitment") by notifying the Agent (which shall give prompt
notice thereof to the Company) no later than 11:00 A.M. (New York City time) on
the date five days before the Increase Date.

                            364-Day Credit Agreement

<PAGE>
                                      -21-

            (v) If the aggregate amount of Proposed New Commitments and Proposed
Increased Commitments (such aggregate amount, the "Total Committed Increase")
equals or exceeds $25,000,000, then, subject to the conditions set forth in
Section 2.05(c)(i):

            (1) effective on and as of the Increase Date, the aggregate amount
      of the Commitments shall be increased by the lesser of the proposed
      aggregate Committed Increase and the Total Committed Increase and shall be
      allocated among the New Lenders and the Lenders as provided in Section
      2.05(c)(vi); and

            (2) on the Increase Date, if any Revolving Loans are then
      outstanding, the Company shall borrow Revolving Loans from all or certain
      of the Lenders and/or (subject to compliance by the Company with Section
      8.04(d)) prepay Revolving Loans of all or certain of the Lenders such
      that, after giving effect thereto, the Revolving Loans (including, without
      limitation, the Types and Interest Periods thereof) shall be held by the
      Lenders (including for such purposes New Lenders) ratably in accordance
      with their respective Commitments.

If the Total Committed Increase is less than $25,000,000, then the aggregate
amount of the Commitments shall not be changed pursuant to this Section 2.05(c).

            (vi) The Total Committed Increase shall be allocated among New
Lenders having Proposed New Commitments and Lenders having Proposed Increased
Commitments as follows:

            (1) If the Total Committed Increase shall be at least $25,000,000
      and less than or equal to the Proposed Aggregate Commitment Increase, then
      (x) the initial Commitment of each New Lender shall be such New Lender's
      Proposed New Commitment and (y) the Commitment of each Lender shall be
      increased by such Lender's Proposed Increased Commitment.

            (2) If the Total Committed Increase shall be greater than the
      Proposed Aggregate Commitment Increase, then the Total Committed Increase
      shall be allocated:

                        (x) first to New Lenders (to the extent of their
                  respective Proposed New Commitments) in such a manner as the
                  Company shall agree; and

                        (y) then to Lenders on a pro rata basis based on the
                  ratio of each Lender's Proposed Increased Commitment (if any)
                  to the aggregate amount of the Proposed Increased Commitments
                  of all of the Lenders.

            (vii) No increase in the Commitments contemplated hereby shall
become effective until the Agent shall have received (x) promissory notes in
respect of the Revolving Loans payable to each New Lender and each other Lender
whose Commitment is being increased that, in either case, shall have requested
such promissory notes at least two Business Days prior to the Increase Date, and
(y) evidence satisfactory to the Agent (including an update of the opinion of
counsel provided pursuant to Section 3.01(g)(v)) that such increases in the
Commitments, and borrowings thereunder, have been duly authorized.

                            364-Day Credit Agreement

<PAGE>
                                      -22-

      SECTION 2.06. Repayment of Revolving Credit Advances, Evidence of
Indebtedness, Extension of Termination Date and Termed Out Loans.

            (a) The Company and each Borrower shall repay to the Agent for the
ratable account of the Lenders on the Termination Date the aggregate principal
amount of the Revolving Credit Advances then outstanding (subject to Section
2.06(d) relating to Termed Out Loans).

            (b) Each Lender shall maintain in accordance with its usual practice
an account or accounts evidencing the indebtedness of the Borrowers to such
Lender resulting from each Advance made by such Lender, including the amounts of
principal and interest payable and paid to such Lender from time to time
hereunder. The Agent shall maintain accounts in which it shall record (i) the
amount of each Advance made hereunder, the Type thereof and the Interest Period,
if any, applicable thereto, (ii) the amount of any principal or interest due and
payable or to become due and payable from the Borrowers to each Lender hereunder
and (iii) the amount of any sum received by the Agent hereunder for the account
of the Lenders and each Lender's share thereof. The entries made in the accounts
maintained pursuant to this Section shall be prima facie evidence of the
existence and amounts of the obligations recorded therein; provided that the
failure of any Lender or the Agent to maintain such accounts or any error
therein shall not in any manner affect the obligation of any Borrower to repay
the Advances in accordance with the terms of this Agreement. Any Lender may
request that Advances made by it be evidenced by a promissory note. In such
event, the applicable Borrower shall prepare, execute and deliver to such Lender
a promissory note payable to the order of such Lender (or, if requested by such
Lender, to such Lender and its registered assigns) and in a form approved by the
Agent. Thereafter, the Advances evidenced by such promissory note and interest
thereon shall at all times (including after assignment pursuant to Section 8.07)
be represented by one or more promissory notes in such form payable to the order
of the payee named therein (or, if such promissory note is a registered note, to
such payee and its registered assigns).

            (c) The Company may by written notice to the Agent, not more than 45
nor less than 30 days prior to the Termination Date then in effect, request that
the Termination Date then in effect be extended for a further period of 364
days. Such request shall be irrevocable and binding upon the Company. The Agent
shall promptly notify each Lender of such request. If a Lender agrees, in its
individual and sole discretion, to so extend its Commitment (an "Extending
Lender"), it will notify the Agent, in writing, of its decision to do so not
more than 30 nor less than 20 days before said date. The Commitment of any
Lender that fails to accept (or fails to respond to) the Company's request for
extension of the Termination Date (a "Declining Lender") shall be terminated on
the Termination Date theretofore in effect (without regard to extension by other
Lenders). The Extending Lenders, or any of them, shall then have the right to
increase their respective Commitments by an aggregate amount up to the amount of
all Declining Lenders' Commitments, and, to the extent of any shortfall, the
Company shall have the right to require any Declining Lender to assign in full
its rights and obligations under this Agreement to an Eligible Assignee
designated by the Company that agrees to accept all of such rights and
obligations (a "Replacement Lender"), provided that (i) such increase and/or
such assignment is otherwise in compliance with Section 8.07, (ii) such
Declining Lender receives payment in full of an amount equal to the principal
amount of all Advances owing to such Declining Lender,

                            364-Day Credit Agreement

<PAGE>
                                      -23-

together with accrued interest thereon to the date of such assignment and all
other amounts payable to such Declining Lender under this Agreement and (iii)
any such increase shall be effective on the Termination Date theretofore in
effect and any such assignment shall be effective on the date specified by the
Company and agreed to by the Replacement Lender and the Agent. If (i) Extending
Lenders and/or Replacement Lenders provide Commitments in an aggregate amount
equal to 51% of the aggregate amount of the Commitments outstanding immediately
prior to the Termination Date in effect at the time the Company requests such
extension, and (ii) no Default shall have occurred and be continuing immediately
prior to said Termination Date, the Termination Date shall be extended by 364
days (except that, if the date on which the Termination Date is to be extended
is not a Business Day, such Termination Date as so extended shall be the next
preceding Business Day) from the effective date set forth in an Extension
Agreement, in substantially the form in Exhibit A-3 hereto, which has been duly
completed and signed by the Company, the Agent and the Extending Lenders and
Replacement Lenders party thereto. Such Extension Agreement shall be executed
and delivered no earlier than 30 days prior to the Termination Date then in
effect and the effective date shall be no earlier than 29 days prior to the
Termination Date then in effect. No extension of the Commitments pursuant to
this Section 2.06(c) shall be legally binding on any party hereto unless and
until such party executes and delivers a counterpart of such Extension
Agreement.

            (d) The Company may, by written notice to the Agent not later than
the date (the "Notice Date") 10 days prior to the Termination Date then in
effect, elect that all of the Revolving Credit Advances of each Lender to the
Company outstanding as at the close of business New York time on the Termination
Date be converted, effective at such time, to a term loan (each, a "Termed Out
Loan") payable by the Company to such Lender, which term loan shall (i) be in a
principal amount equal to the aggregate outstanding principal amount of the
Revolving Credit Advances of such Lender as at such time, (ii) mature on the
date (the "Term Out Date") that is the date one year after said Termination Date
(or, if said date is not a Business Day, the immediately preceding Business
Day), and the Borrower agrees to repay each such term loan in full on such date,
and (iii) bear interest, until the payment in full thereof, at the rates
provided for in Section 2.07, and (iv) otherwise constitute an "Advance" for all
purposes of this Agreement (including without limitation Articles VI, IX and X);
provided that the election provided for in this paragraph (d) shall not take
effect if, on the Notice Date or on said Termination Date, a Default has
occurred and is continuing; and provided, further, that the election provided
for in this paragraph (d) may be exercised only once. Upon the effectiveness of
the conversion provided for in this paragraph (d), the right of the Company to
borrow under Section 2.01 shall cease to be in effect, and the Company agrees
that it will, forthwith upon the request of any Lender through the Agent, issue
a new promissory note in favor of each such Lender in the amount of the term
loan of such Lender to the Company provided herein, in exchange for the Notes
held by such Lender (which shall be promptly returned to the Company, through
the Agent, marked "cancelled"), which promissory note shall be deemed to be a
"Note" for all purposes of this Agreement (including without limitation Articles
VI, IX and X).

                            364-Day Credit Agreement

<PAGE>
                                      -24-

      SECTION 2.07. Interest on Revolving Credit Advances. Each Borrower shall
pay interest on the unpaid principal amount of each Revolving Credit Advance
made to such Borrower from the date of such Revolving Credit Advance until such
principal amount shall be paid in full, at the following rates per annum:

            (a) Base Rate Advances. During such periods as such Revolving Credit
Advance is a Base Rate Advance, a rate per annum equal at all times to the Base
Rate in effect from time to time, payable in arrears quarterly on the last day
of each March, June, September and December during such periods and on the date
such Base Rate Advance shall be Converted or paid in full.

            (b) Eurodollar Rate Advances. During such periods as such Revolving
Credit Advance is a Eurodollar Rate Advance, a rate per annum equal at all times
during each Interest Period for such Revolving Credit Advance to the sum of (x)
the Eurodollar Rate for such Interest Period for such Revolving Credit Advance
plus (y) the Applicable Margin, payable in arrears on the last day of such
Interest Period and, if such Interest Period has a duration of more than three
months, on each day that occurs during such Interest Period every three months
from the first day of such Interest Period and on the date such Eurodollar Rate
Advance shall be Converted or paid in full.

      SECTION 2.08. Interest Rate Determination.

            (a) If the Eurodollar Rate does not appear on Page 3750 of the
Telerate Service (or any successor page), each Reference Bank agrees to furnish
to the Agent timely information for the purpose of determining each Eurodollar
Rate. If the Eurodollar Rate does not appear on said Page 3750 (or any successor
page), and if any one or more of the Reference Banks shall not furnish such
timely information to the Agent for the purpose of determining any such interest
rate, the Agent shall determine such interest rate on the basis of timely
information furnished by the remaining Reference Banks. The Agent shall give
prompt notice to the Company and the Lenders of the applicable interest rate
determined by the Agent for purposes of Section 2.07, and the rate, if any,
furnished by each Reference Bank for the purpose of determining the interest
rate under Section 2.07(b).

            (b) If, due to a major disruption in the interbank funding market
with respect to any Eurodollar Rate Advances, the Required Lenders notify the
Agent that the Eurodollar Rate for any Interest Period for such Advances will
not adequately reflect the cost to such Required Lenders of making, funding or
maintaining their respective Eurodollar Rate Advances for such Interest Period,
the Agent shall forthwith so notify the Borrower and the Lenders, whereupon (i)
each Eurodollar Rate Advance will automatically, on the last day of the then
existing Interest Period therefor, Convert into a Base Rate Advance, and (ii)
the obligation of the Lenders to make, or to Convert Revolving Credit Advances
into, Eurodollar Rate Advances shall be suspended until the Agent shall notify
the Company and the Lenders that the circumstances causing such suspension no
longer exist.

                            364-Day Credit Agreement

<PAGE>
                                      -25-

            (c) If the Company shall fail to select the duration of any Interest
Period for any Eurodollar Rate Advances in accordance with the provisions
contained in the definition of "Interest Period" in Section 1.01, the Agent will
forthwith so notify the Company and the Lenders and the Company will be deemed
to have selected an Interest Period of one month.

            (d) If the aggregate unpaid principal amount of Eurodollar Rate
Advances comprising any Borrowing shall be reduced, by payment or prepayment or
otherwise, to less than $10,000,000, such Advances shall automatically Convert
into Base Rate Advances on the last day of the Interest Period applicable
thereto.

            (e) Upon the occurrence and during the continuance of any Event of
Default, (i) each Eurodollar Rate Advance will automatically, on the last day of
the then existing Interest Period therefor, Convert into a Base Rate Advance and
(ii) the obligation of the Lenders to make, or to Convert Advances into,
Eurodollar Rate Advances shall be suspended.

            (f) If the Eurodollar Rate does not appear on Page 3750 of the
Telerate Service (or any successor page) and fewer than two Reference Banks
furnish timely information to the Agent for determining the Eurodollar Rate for
any Eurodollar Rate Advances,

            (i) the Agent shall forthwith notify the Company and the Lenders
      that the interest rate cannot be determined for such Eurodollar Rate
      Advances,

            (ii) each such Advance will automatically, on the last day of the
      then existing Interest Period therefor, Convert into a Base Rate Advance
      (or if such Advance is then a Base Rate Advance, will continue as a Base
      Rate Advance), and

            (iii) the obligation of the Lenders to make, or to Convert Revolving
      Credit Advances into, Eurodollar Rate Advances shall be suspended until
      the Agent shall notify the Company and the Lenders that the circumstances
      causing such suspension no longer exist.

            SECTION 2.09. Optional Conversion of Revolving Credit Advances. The
Company may on any Business Day, upon notice given to the Agent not later than
11:00 A.M. (New York City time) on the third Business Day prior to the date of
the proposed Conversion and subject to the provisions of Sections 2.08 and 2.12,
Convert all Revolving Credit Advances of one Type comprising the same Borrowing
into Revolving Credit Advances of the other Type; provided, however, that any
Conversion of Eurodollar Rate Advances into Base Rate Advances shall be made
only on the last day of an Interest Period for such Eurodollar Rate Advances,
any Conversion of Base Rate Advances into Eurodollar Rate Advances shall be in
an amount not less than the minimum amount specified in Section 2.02(b) and no
Conversion of any Revolving Credit Advances shall result in more separate
Revolving Credit Borrowings than permitted under Section 2.02(b). Each such
notice of a Conversion shall, within the restrictions specified above, specify
(i) the date of such Conversion, (ii) the Revolving Credit Advances to be
Converted, and (iii) if such Conversion is into Eurodollar Rate Advances, the
duration of the initial Interest

                            364-Day Credit Agreement

<PAGE>
                                      -26-

Period for each such Advance. Each notice of Conversion shall be irrevocable and
binding on the Company.

      SECTION 2.10. Optional Prepayments of Revolving Credit Advances. The
Company may, upon notice not later than 11:00 A.M. (New York City time) on the
date of such payment, in the case of Base Rate Advances, and two Business Days'
notice, in the case of Eurodollar Rate Advances, to the Agent stating the
proposed date and aggregate principal amount of the prepayment, and if such
notice is given the Company shall, prepay the outstanding principal amount of
the Revolving Credit Advances comprising part of the same Revolving Credit
Borrowing in whole or ratably in part, together with accrued interest to the
date of such prepayment on the principal amount prepaid; provided, however, that
(x) each partial prepayment shall be in an aggregate principal amount of
$5,000,000 or an integral multiple of $1,000,000 in excess thereof and (y) in
the event of any such prepayment of a Eurodollar Rate Advance, the Company shall
be obligated to reimburse the Lenders in respect thereof pursuant to Section
8.04(d).

      SECTION 2.11. Increased Costs.

            (a) If, due to either (i) the introduction of or any change in any
law or regulation or in the interpretation or administration of any law or
regulation by any governmental authority charged with the interpretation or
administration thereof or (ii) the compliance with any guideline or request from
any central bank or other governmental authority that would be complied with
generally by similarly situated banks acting reasonably (whether or not having
the force of law), there shall be any increase in the cost to any Lender of
agreeing to make or making, funding or maintaining Eurodollar Rate Advances or
LIBO Rate Advances by an amount deemed by such Lender to be material, then the
Company shall from time to time, upon demand by such Lender (with a copy of such
demand to the Agent), pay to the Agent for the account of such Lender additional
amounts sufficient to compensate such Lender for such increased cost. A
certificate as to the amount of such increased cost, submitted to the Company
and the Agent by such Lender, shall be conclusive and binding for all purposes,
absent manifest error. Notwithstanding the foregoing, no Lender shall be
entitled to request compensation under this paragraph with respect to any
Competitive Bid Advance if the change giving rise to such request was applicable
to such Lender at the time of submission of such Lender's offer to make such
Competitive Bid Advance.

            (b) If, due to either (i) the introduction of or any change in or in
the interpretation of any law or regulation or (ii) compliance with any
guideline or request from any central bank or other governmental or regulatory
authority which becomes effective after the date hereof, there shall be any
increase in the amount of capital required or expected to be maintained by any
Lender or any corporation controlling such Lender and the amount of such capital
is increased by or based upon the existence of such Lender's Advances or
commitment to lend hereunder and other commitments of this type by an amount
deemed by such Lender to be material, then, upon demand by such Lender (with a
copy of such demand to the Agent), the Company shall pay to the Agent for the
account of such Lender, from time to time as specified by such Lender,
additional amounts sufficient to compensate such Lender or such corporation in
the light of such circumstances, to the extent that such Lender reasonably
determines such increase in capital to

                            364-Day Credit Agreement

<PAGE>
                                      -27-

be allocable to the existence of such Lender's Advances or commitment to lend
hereunder. A certificate as to such amounts submitted to the Company and the
Agent by such Lender shall be conclusive and binding for all purposes as to the
calculations therein, absent manifest error. Such certificate shall be in
reasonable detail and shall certify that the claim for additional amounts
referred to therein is generally consistent with such Lender's treatment of
similarly situated customers of such Lender whose transactions with such Lender
are similarly affected by the change in circumstances giving rise to such
payment, but such Lender shall not be required to disclose any confidential or
proprietary information therein.

      SECTION 2.12. Illegality. Notwithstanding any other provision of this
Agreement, if any Lender shall notify the Agent (and provide to the Company an
opinion of counsel to the effect) that the introduction of or any change in or
in the interpretation of any law or regulation makes it unlawful, or any central
bank or other governmental authority asserts that it is unlawful, for such
Lender or its Eurodollar Lending Office to perform its obligations hereunder to
make Eurodollar Rate Advances or LIBO Rate Advances or to fund or maintain
Eurodollar Rate Advances or LIBO Rate Advances hereunder, (i) each Eurodollar
Rate Advance or LIBO Rate Advance, as the case may be, of such Lender will
automatically, upon such demand, Convert into a Base Rate Advance or an Advance
that bears interest at the rate set forth in Section 2.07(a), as the case may
be, and (ii) the obligation of such Lender to make, or to Convert Revolving
Credit Advances into, Eurodollar Rate Advances shall be suspended until the
Agent shall notify the Company and such Lender that the circumstances causing
such suspension no longer exist and such Lender shall make the Base Rate
Advances in the amount and on the dates that it would have been requested to
make Eurodollar Rate Advances had no such suspension been in effect.

      SECTION 2.13. Payments and Computations.

            (a) Each Borrower shall make each payment hereunder not later than
11:00 A.M. (New York City time) on the day when due in U.S. dollars to the Agent
at the Agent's Account in same day funds. The Agent will promptly thereafter
cause to be distributed like funds relating to the payment of principal or
interest or facility fees or usage fees ratably (other than amounts payable
pursuant to Section 2.03, 2.04(b), 2.05(b), 2.11, 2.14 or 8.04(d)) to the
Lenders for the account of their respective Applicable Lending Offices, and like
funds relating to the payment of any other amount payable to any Lender to such
Lender for the account of its Applicable Lending Office, in each case to be
applied in accordance with the terms of this Agreement. Upon its acceptance of
an Assignment and Acceptance and recording of the information contained therein
in the Register pursuant to Section 8.07(d), from and after the effective date
specified in such Assignment and Acceptance, the Agent shall make all payments
hereunder in respect of the interest assigned thereby to the Lender assignee
thereunder, and the parties to such Assignment and Acceptance shall make all
appropriate adjustments in such payments for periods prior to such effective
date directly between themselves.

            (b) All computations of interest based on the Base Rate and of
facility fees and of usage fees shall be made by the Agent on the basis of a
year of 365 or 366 days, as the case may be, and all computations of interest
based on the Eurodollar Rate or the Federal Funds Rate shall

                            364-Day Credit Agreement

<PAGE>
                                      -28-

be made by the Agent on the basis of a year of 360 days, in each case for the
actual number of days (including the first day but excluding the last day)
occurring in the period for which such interest or facility fees or usage fees
are payable. Each determination by the Agent of an interest rate hereunder shall
be conclusive and binding for all purposes, absent manifest error.

            (c) Whenever any payment hereunder shall be stated to be due on a
day other than a Business Day, such payment shall be made on the next succeeding
Business Day, and such extension of time shall in such case be included in the
computation of payment of interest or facility fee or usage fee, as the case may
be; provided, however, that, if such extension would cause payment of interest
on or principal of Eurodollar Rate Advances or LIBO Rate Advances to be made in
the next following calendar month, such payment shall be made on the next
preceding Business Day.

            (d) Unless the Agent shall have received notice from the Company
prior to the date on which any payment is due to the Lenders hereunder that a
Borrower will not make such payment in full, the Agent may assume that such
Borrower has made such payment in full to the Agent on such date and the Agent
may, in reliance upon such assumption, cause to be distributed to each Lender on
such due date an amount equal to the amount then due such Lender. If and to the
extent such Borrower shall not have so made such payment in full to the Agent,
each Lender shall repay to the Agent forthwith on demand such amount distributed
to such Lender together with interest thereon, for each day from the date such
amount is distributed to such Lender until the date such Lender repays such
amount to the Agent, at the Federal Funds Rate.

      SECTION 2.14. Taxes.

            (a) Each Lender is exempt from any withholding imposed under the
laws of the United States in respect of any fees, interest or other payments to
which it is entitled pursuant to this Agreement or any promissory notes issued
hereunder (the "Income") because (i) the Lender is organized under the laws of
the United States; (ii) the Income is effectively connected with the conduct of
a trade or business within the United States within the meaning of Section 871
of the Internal Revenue Code; or (iii) the Income is eligible for an exemption
by reason of a tax treaty. The Agent is exempt from any withholding tax imposed
under the laws of the United States in respect of the Income because the Agent
is organized under the laws of the United States.

            (b) Each Lender organized under the laws of a jurisdiction outside
the United States (each, a "Foreign Lender") shall, on or prior to the date of
its execution and delivery of this Agreement in the case of each Initial Lender,
and on the date of the Assignment and Acceptance pursuant to which it became a
Lender in the case of each other Foreign Lender and from time to time thereafter
if requested in writing by the Company or the Agent, provide the Agent and the
relevant Borrower with Internal Revenue Service Form W-8BEN or W-8ECI, as
appropriate, or any successor or other form prescribed by the Internal Revenue
Service, certifying that such Foreign Lender is exempt or entitled to a reduced
rate of United States withholding tax on any Income that is the subject of such
forms. If the form provided by a Foreign Lender at the time such Foreign Lender
first becomes a party to this Agreement indicates a United States interest
withholding tax rate in excess of zero, or in excess of the rate

                            364-Day Credit Agreement

<PAGE>
                                      -29-

applicable to the Foreign Lender assignor on the date of the Assignment and
Acceptance pursuant to which it became a Foreign Lender, in the case of each
other Foreign Lender, withholding tax at such rate shall be considered excluded
from Taxes as defined in Section 2.14(c).

            (c) Based on Section 2.14(a) and (b), any and all payments by any
Borrower hereunder or under any promissory notes issued hereunder shall be made
free and clear of and without deduction for any present United States federal
income withholding taxes imposed on a Foreign Lender under the Internal Revenue
Code (such withholding taxes being hereinafter referred to as "Taxes").

            (d) If, as a result of the enactment, promulgation, execution or
ratification of, or any change in or amendment to, any United States law or any
tax treaty (or in the application or official interpretation of any law or any
tax treaty) that occurs on or after the date a Foreign Lender first becomes a
party to this Agreement (a "Change in Law"), a Foreign Lender cannot comply with
Section 2.14(b) or, if despite such compliance, any Borrower shall be required
to deduct any Taxes from or in respect of any Income, then: (i) the sum payable
to such Foreign Lender shall be increased as may be necessary so that after
making all required deductions for such Taxes (including deductions applicable
to additional sums payable under this Section 2.14) such Foreign Lender receives
an amount equal to the sum it would have received had no such deductions been
made, (ii) such Borrower shall make such deductions and (iii) such Borrower
shall pay the full amount deducted to the relevant taxation authority or other
authority in accordance with applicable law. Notwithstanding the foregoing, each
Borrower shall be entitled to pay any Taxes in any lawful manner so as to reduce
any deductions and such Foreign Lender shall to the extent it is reasonably able
provide any documentation or file any forms as may be required by the Internal
Revenue Service or any other foreign governmental agency. In addition, if any
Foreign Lender or the Agent (in lieu of such Foreign Lender), as the case may
be, is required to pay directly any Taxes as a result of a Change in Law because
a Borrower cannot or does not legally or timely do so, the Company shall
indemnify such Foreign Lender or Agent for payment of such Taxes, without
duplication of, or increase in, the amount of Taxes otherwise due to the Foreign
Lender.

            (e) In addition, the Company agrees to pay any present or future
stamp or documentary taxes or any other excise or property taxes, charges or
similar levies (excluding any income or franchise taxes, business taxes or
capital taxes of any nature) that arise from the execution, delivery or
registration of, or otherwise with respect to, this Agreement (hereinafter
referred to as "Other Taxes"). If a Lender is required to pay directly Other
Taxes because a Borrower cannot or does not legally or timely do so, the Company
shall indemnify such Lender for such payment of Other Taxes.

            (f) Within 30 days after the date of any payment of Taxes or foreign
withholding taxes, the Company shall furnish to the Agent, at its address
referred to in Section 8.02, the original or a certified copy of a receipt
evidencing payment thereof. Prior to making any payment hereunder by or on
behalf of any Borrower through an account or branch outside the United States or
on behalf of any Borrower by a payor that is not a United States person (a
"Foreign Payment"), such Borrower shall determine that no foreign withholding
taxes are payable in

                            364-Day Credit Agreement

<PAGE>
                                      -30-

respect thereof, and at its expense, shall furnish, or shall cause such payor to
furnish, to the Agent, at such address, a certificate from each appropriate
taxing authority, or an opinion of counsel acceptable to the Agent, in either
case stating that such Foreign Payment is exempt from or not subject to foreign
withholding taxes. Each Lender shall cooperate with each Borrower's efforts
described in this subsection by providing to the extent reasonably within its
means any forms requested by such Borrower substantiating an exemption from
foreign withholding taxes required by any governmental agency. For purposes of
this subsection (f), the terms "United States" and "United States person" shall
have the meaning specified in Section 7701 of the Internal Revenue Code. If, as
a result of the enactment, promulgation, execution or ratification of, or any
change in or amendment to, any applicable foreign law or any tax treaty (or in
the application or official interpretation of any law or any tax treaty) that
occurs on or after the date a tax opinion is rendered pursuant to the terms of
this subsection, and which renders such tax opinion incorrect as to the absence
of any foreign withholding tax (a "Foreign Change in Law"), any Borrower shall
be required to deduct any foreign withholding taxes from or in respect of any
Income, then: (i) the sum payable to the applicable Lender shall be increased as
may be necessary so that after making all required deductions for foreign
withholding taxes (including deductions applicable to additional sums payable
under this Section 2.14) such Lender receives an amount equal to the sum it
would have received had no such deductions been made, (ii) such Borrower shall
make such deductions and (iii) such Borrower shall pay the full amount deducted
to the relevant taxation authority or other authority in accordance with
applicable law. Notwithstanding the foregoing, each Borrower shall be entitled
to pay any foreign withholding taxes in any lawful manner so as to reduce any
deductions and such Lender shall to the extent it is reasonably able provide any
documentation or file any forms as may be required by the Internal Revenue
Service or any other foreign governmental agency. In addition, if any Lender is
required to pay directly any foreign withholding tax in respect of any Foreign
Payments made pursuant to this Agreement because a Borrower cannot or does not
legally or timely do so, the Company shall indemnify such Lender for payment of
such tax.

            (g) For any period with respect to which a Lender has failed to
comply with the requirements of subsection (b) or (f) relating to certain forms
intended to reduce withholding taxes (other than if such failure is due to a
Change in Law or a Foreign Change in Law), such Lender shall not be entitled to
indemnification under subsection (d) or (f).

            (h) Upon a Change in Law or the imposition of any foreign
withholding tax in respect of Foreign Payments, a Lender shall, upon the written
request of and at the expense of the Company, use reasonable efforts to change
the jurisdiction of its Applicable Lending Office if the making of such a change
would avoid the need for, or reduce the amount of, any such taxes that may
thereafter accrue and would not, in the reasonable judgment of such Lender,
cause the imposition on such Lender of any material legal or regulatory burdens.

            (i) Without prejudice to the survival of any other agreement of any
Borrower hereunder, the agreements and obligations of the Company contained in
this Section 2.14 shall survive the payment in full of principal and interest
hereunder until the applicable statute of limitations relating to the payment of
any Taxes under Section 2.14(d) has expired.

                            364-Day Credit Agreement

<PAGE>
                                      -31-

            (j) Any request by any Lender for payment of any amount under this
Section 2.14 shall be accompanied by a certification that such Lender's claim
for said amount is generally consistent with such Lender's treatment of
similarly situated customers of such Lender whose transactions with such Lender
are similarly affected by the change in circumstances giving rise to such
payment, but such Lender shall not be required to disclose any confidential or
proprietary information therein.

      SECTION 2.15. Sharing of Payments, Etc. If any Lender shall obtain any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) on account of the Revolving Credit Advances owing to it
(other than pursuant to Section 2.05(b), 2.11, 2.14 or 8.04(d)) in excess of its
ratable share of payments on account of the Revolving Credit Advances obtained
by all the Lenders, such Lender shall forthwith purchase from the other Lenders
such participations in the Revolving Credit Advances owing to them as shall be
necessary to cause such purchasing Lender to share the excess payment ratably
with each of them; provided, however, that if all or any portion of such excess
payment is thereafter recovered from such purchasing Lender, such purchase from
each Lender shall be rescinded and such Lender shall repay to the purchasing
Lender the purchase price to the extent of such recovery together with an amount
equal to such Lender's ratable share (according to the proportion of (i) the
amount of such 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. Each Borrower
agrees that any Lender so purchasing a participation from another Lender
pursuant to this Section 2.15 may, to the fullest extent permitted by law,
exercise all its rights of payment (including the right of setoff) with respect
to such participation as fully as if such Lender were the direct creditor of
such Borrower in the amount of such participation.

      SECTION 2.16. Use of Proceeds. The proceeds of the Advances shall be
available (and the Company agrees that such proceeds shall be used) for general
corporate purposes of the Company and its Subsidiaries, including commercial
paper backstop.

      SECTION 2.17. Borrowings by Borrowing Subsidiaries; Substitution of
Borrower.

            (a) The Company may, at any time or from time to time, designate one
or more Subsidiaries (including the Guarantor) as Borrowers hereunder by
furnishing to the Agent a letter (a "Designation Letter") in duplicate, in
substantially the form of Exhibit D, duly completed and executed by the Company
and such Subsidiary. Upon any such designation of a Subsidiary, such Subsidiary
shall be a Borrowing Subsidiary and a Borrower entitled to borrow Revolving
Credit Advances and Competitive Bid Advances on and subject to the terms and
conditions of this Agreement.

            (b) If all principal of and interest on all Advances made to any
Borrowing Subsidiary have been paid in full, the Company may terminate the
status of such Borrowing Subsidiary as a Borrower hereunder by furnishing to the
Agent a letter (a "Termination

                            364-Day Credit Agreement

<PAGE>
                                      -32-

Letter") in substantially the form of Exhibit F, duly completed and executed by
the Company. Any Termination Letter furnished hereunder shall be effective upon
receipt by the Agent, which shall promptly notify the Lenders, whereupon the
Lenders shall, upon payment in full of all amounts owing by such Borrower
hereunder, promptly deliver to the Company (through the Agent) the promissory
notes, if any, of such former Borrower. Notwithstanding the foregoing, the
delivery of a Termination Letter with respect to any Borrower shall not
terminate (i) any obligation of such Borrower that remains unpaid at the time of
such delivery (including without limitation any obligation arising thereafter in
respect of such Borrower under Section 2.11 or 2.14) or (ii) the obligations of
the Company under Article IX with respect to any such unpaid obligations;
provided, that if the status of such Borrowing Subsidiary has been terminated as
aforesaid because the Company has sold or transferred its interest in such
Subsidiary, and the Company so certifies to the Agent at the time of delivery of
such Termination Letter, and subject to payment of said principal and interest,
(i) such Subsidiary shall, automatically upon the effectiveness of the delivery
of such Termination Letter and certification, cease to have any obligation under
this Agreement and (ii) the Company shall automatically be deemed to have
unconditionally assumed, as primary obligor, and hereby agrees to pay and
perform, all of such obligations.

            (c) In addition to the foregoing, the Company may, at any time when
there are no Advances outstanding hereunder and upon not less than 10 Business
Days' notice, irrevocably elect to terminate its right to be a Borrower
hereunder as of the date (which shall be a Business Day) specified in such
Substitution Letter (the "Substitution Date") and designate the Guarantor as a
Borrower hereunder by furnishing to the Agent (x) a letter (a "Substitution
Letter"), in substantially the form of Exhibit E duly completed and executed by
the Company and the Guarantor, (y) a certificate signed by a duly authorized
officer of the Company, and a certificate signed by a duly authorized officer of
the Guarantor, each dated the Substitution Date, stating that:

            (i) the representations and warranties contained in Section 4.01
      (except the representations set forth in the last sentence of subsection
      (e) thereof and in subsection (f) thereof (other than clause (ii)
      thereof)) are correct in all material respects on and as of the
      Substitution Date, as though made on and as of such date, and

            (ii) No event has occurred and is continuing, or would result from
      such designation, that constitutes a Default;

and (z) the Agent shall have received such other corporate documents,
resolutions and legal opinions relating to the foregoing as it, or any Lender
through the Agent, may reasonably request.

            SECTION 2.18. Mitigation Obligations. If any Lender requests
compensation under Section 2.11, or if the obligation of any Lender to make or
continue Advances as, or Convert Advances into, Eurodollar Rate Advances is
suspended pursuant to Section 2.12, then, upon the written request of the
Company, such Lender shall use reasonable efforts to designate a different
lending office for funding or booking its Loans hereunder or to assign its
rights and

                            364-Day Credit Agreement

<PAGE>
                                      -33-

obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designations or assignment (i) would eliminate
or reduce amounts payable pursuant to Section 2.11 or would cause such Lender
not to be subject to such suspension, as the case may be, in the future and (ii)
would not subject such Lender to any unreimbursed cost or expense and would not,
in the reasonable judgment of such Lender, cause imposition on such Lender of
any material legal or regulatory burdens or otherwise be disadvantageous to such
Lender. The Company hereby agrees to pay all reasonable costs and expenses
incurred by any Lender in connection with any such designation or assignment.

                                   ARTICLE III

                   CONDITIONS TO EFFECTIVENESS AND ARTICLE II

      SECTION 3.01. Conditions Precedent to Effectiveness of Sections 2.01 and
2.03. Sections 2.01 and 2.03 of this Agreement shall become effective on and as
of the first date (the "Effective Date") on which the following conditions
precedent have been satisfied:

            (a) As of the Effective Date, there shall have occurred no Material
Adverse Change since December 28, 2002 that has not been publicly disclosed.

            (b) As of the Effective Date, there shall exist no action, suit,
investigation, litigation or proceeding affecting the Company, or any of its
Subsidiaries (including the Guarantor) pending or, to the knowledge of the
Company's or the Guarantor's executive officers, threatened before any court,
governmental agency or arbitrator that (i) could be reasonably likely to have a
Material Adverse Effect or (ii) could reasonably be likely to affect the
legality, validity or enforceability of this Agreement or the consummation of
the transactions contemplated hereby.

            (c) As of the Effective Date, nothing shall have come to the
attention of the Lenders during the course of their due diligence investigation
to lead them to believe that the Information Memorandum was or has become
misleading, incorrect or incomplete in any material respect.

            (d) As of the Effective Date, all governmental and third party
consents and approvals necessary in connection with the transactions
contemplated hereby shall have been obtained (without the imposition of any
conditions that are not acceptable to the Lenders) and shall remain in effect.

            (e) As of the Effective Date, the Company shall have paid all
accrued fees and expenses of the Agent and the Lenders (including the accrued
fees and expenses of counsel to the Agent, to the extent invoiced at least one
Business Day prior to the Effective Date).

            (f) On the Effective Date, the following statements shall be true
and the Agent shall have received for the account of each Lender a certificate
signed by a duly authorized officer of the Company dated the Effective Date,
stating that:

                            364-Day Credit Agreement

<PAGE>
                                      -34-

            (i) The representations and warranties contained in Section 4.01 are
      correct in all material aspects on and as of the Effective Date, and

            (ii) No event has occurred and is continuing that constitutes a
      Default.

            (g) The Agent shall have received on or before the Effective Date
the following, each dated such day, in form and substance satisfactory to the
Agent and (except for any notes requested by the Lenders) in sufficient copies
for each Lender:

            (i) To the extent any Lender shall have requested, at least one
      Business day prior to the Effective Date that its Revolving Credit
      Advances be evidenced by a promissory note, a note payable to the order of
      such Lender.

            (ii) Certified copies of the resolutions of the Board of Directors
      of the Company and of the Guarantor approving this Agreement, and of all
      documents evidencing other necessary corporate action and governmental
      approvals, if any, with respect to this Agreement.

            (iii) A certificate of the Secretary or an Assistant Secretary of
      the Company certifying the names and true signatures of the officers of
      the Company authorized to sign this Agreement and the other documents to
      be delivered hereunder.

            (iv) A certificate of the Secretary or an Assistant Secretary of the
      Guarantor certifying the names and true signatures of the officers of the
      Guarantor authorized to sign this Agreement and the other documents to be
      delivered hereunder.

            (v) An opinion of Pamela C. McGuire, Esq., General Counsel of each
      of the Company and the Guarantor, substantially in the form of Exhibit C
      hereto and as to such other matters as any Lender through the Agent may
      reasonably request.

            (vi) A favorable opinion of Milbank, Tweed, Hadley & McCloy LLP,
      special New York counsel for the Agent.

            (vii) Evidence of the termination of the Commitments as defined in
      the $250,000,000 364-Day Second Amended and Restated Credit Agreement
      dated as of May 1, 2002 among the Company, the Guarantor, certain lenders
      and JP Morgan Chase Bank, as Agent (as amended and restated) and of the
      payment in full of any and all amounts payable thereunder.

            (viii) The Agent shall have received such other approvals, opinions
      or documents as any Lender through the Agent may reasonably request.

                            364-Day Credit Agreement

<PAGE>
                                      -35-

      SECTION 3.02. Conditions Precedent to Each Revolving Credit Borrowing. The
obligation of each Lender to make a Revolving Credit Advance on the occasion of
each Revolving Credit Borrowing shall be subject to the conditions precedent
that the Effective Date shall have occurred and on the date of such Revolving
Credit Borrowing (a) the following statements shall be true (and each of the
giving of the applicable Notice of Revolving Credit Borrowing and the acceptance
by any Borrower of the proceeds of such Revolving Credit Borrowing shall
constitute a representation and warranty by the Company and such Borrower that
on the date of such Borrowing such statements are true):

            (i) The representations and warranties contained in Section 4.01
      (except the representations set forth in the last sentence of subsection
      (e) thereof and in subsection (f) thereof (other than clause (ii)
      thereof)) are correct in all material respects on and as of the date of
      such Revolving Credit Borrowing, before and after giving effect to such
      Revolving Credit Borrowing and to the application of the proceeds
      therefrom, as though made on and as of such date, and

            (ii) No event has occurred and is continuing, or would result from
      such Revolving Credit Borrowing or from the application of the proceeds
      therefrom, that constitutes a Default;

and (b) in the case of the first Borrowing by a Borrowing Subsidiary, the Agent
shall have received such corporate documents, resolutions and legal opinions
relating to such Borrowing Subsidiary as the Agent may reasonably require.

      SECTION 3.03. Conditions Precedent to Each Competitive Bid Borrowing. The
obligation of each Lender that is to make a Competitive Bid Advance on the
occasion of a Competitive Bid Borrowing to make such Competitive Bid Advance as
part of such Competitive Bid Borrowing is subject to the conditions precedent
that (i) the Agent shall have received the written confirmatory Notice of
Competitive Bid Borrowing with respect thereto, and (ii) on the date of such
Competitive Bid Borrowing the following statements shall be true (and each of
the giving of the applicable Notice of Competitive Bid Borrowing and the
acceptance by any Borrower of the proceeds of such Competitive Bid Borrowing
shall constitute a representation and warranty by the Company and such Borrower
that on the date of such Competitive Bid Borrowing such statements are true):

            (a) The representations and warranties contained in Section 4.01
(except the representations set forth in the last sentence of subsection (e)
thereof and in subsection (f) thereof (other than clause (ii) thereof)) are
correct in all material respects on and as of the date of such Competitive Bid
Borrowing, before and after giving effect to such Competitive Bid Borrowing and
to the application of the proceeds therefrom, as though made on and as of such
date; and

            (b) No event has occurred and is continuing, or would result from
such Competitive Bid Borrowing or from the application of the proceeds
therefrom, that constitutes a Default.

                            364-Day Credit Agreement

<PAGE>
                                      -36-

      SECTION 3.04. Determinations Under Section 3.01. For purposes of
determining compliance with the conditions specified in Section 3.01, each
Lender shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to the Lenders unless an officer
of the Agent responsible for the transactions contemplated by this Agreement
shall have received notice from such Lender prior to the proposed Effective
Date, as notified by the Company to the Lenders, specifying its objection
thereto. The Agent shall promptly notify the Lenders of the occurrence of the
Effective Date.

                                   ARTICLE IV

               REPRESENTATIONS AND WARRANTIES OF THE LOAN PARTIES

      SECTION 4.01. Representations and Warranties of the Loan Parties. Each of
the Company and the Guarantor (each, a "Loan Party") represents and warrants as
follows:

            (a) The Company is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware and the Guarantor
is a limited liability company duly organized, validly existing and in good
standing under the laws of the State of Delaware.

            (b) The execution, delivery and performance by each Loan Party of
this Agreement and the consummation of the transactions contemplated hereby are
within such Loan Party's powers, have been duly authorized by all necessary
corporate or other action, and do not contravene (i) its charter, by-laws or
other organizational documents or (ii) any law or contractual restriction
binding on or materially affecting such Loan Party.

            (c) No authorization or approval or other action by, and no notice
to or filing with, any governmental authority or regulatory body or any other
third party is required for the due execution, delivery and performance by
either Loan Party of this Agreement.

            (d) This Agreement has been duly executed and delivered by each Loan
Party. This Agreement is the legal, valid and binding obligation of each Loan
Party enforceable against it in accordance with its terms, subject to applicable
bankruptcy, insolvency and similar laws affecting creditors' rights generally
and equitable principles of general applicability.

            (e) The Consolidated balance sheet of the Company and its
Subsidiaries as at December 28, 2002, and the related Consolidated statements of
operations and cash flows of the Company and its Subsidiaries for the fiscal
year then ended, accompanied by an opinion of KPMG Peat Marwick, independent
public accountants, fairly present the financial condition of the Company as at
such date and the results of the operations of the Company for the period ended
on such date, all in accordance with generally accepted accounting principles
consistently applied. Since December 28, 2002, there has been no Material
Adverse Change that has not been publicly disclosed.

                            364-Day Credit Agreement

<PAGE>
                                      -37-

            (f) There is no pending or threatened action, suit, investigation,
litigation or proceeding affecting either Loan Party before any court,
governmental agency or arbitrator that (i) would be reasonably likely to have a
Material Adverse Effect or (ii) would reasonably be likely to affect the
legality, validity or enforceability of this Agreement or any promissory note
issued under this Agreement, if any, or the consummation of the transactions
contemplated hereby.

            (g) It is not engaged in the business of extending credit for the
purpose of purchasing or carrying Margin Stock and no proceeds of any Advance
will be used to purchase or carry any Margin Stock or to extend credit to others
for the purpose (whether immediate, individual or ultimate) of purchasing or
carrying any Margin Stock, in either case in a manner that would cause the
Advances or any Lender to be in violation of Regulation U.

            (h) Following application of the proceeds of each Advance, not more
than 25 percent of the value of the assets (either of any Borrower only or of
the Company and its Subsidiaries or the Guarantor and its Subsidiaries, in each
case on a Consolidated basis) subject to the provisions of Section 5.02(a) or
(b)(ii) or subject to any restriction contained in any agreement or instrument
between it and any Lender or any Affiliate of any Lender relating to Debt and
within the scope of Section 6.01(d) will be Margin Stock.

            (i) Neither Loan Party is an "investment company", a company
"controlled by", or "promoter" or "principal underwriter" for, an "investment
company", as such terms are defined in the Investment Company Act of 1940, as
amended. Neither the making of any Advances nor the application of the proceeds
or repayment thereof by any Borrower will violate any provision of such Act or
any rule, regulation or order of the Securities and Exchange Commission
thereunder.

                                    ARTICLE V

                                    COVENANTS

      SECTION 5.01. Affirmative Covenants. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, each Loan Party will:

            (a) Compliance with Laws, Etc. Comply, and cause each of its
Subsidiaries to comply, in all material respects, with all applicable laws,
rules, regulations and orders, such compliance to include, without limitation,
compliance with ERISA and Environmental Laws, except where failure so to comply
would not, and would not be reasonably likely to, have a Material Adverse
Effect.

            (b) Payment of Taxes, Etc. Pay and discharge, and cause each of its
Subsidiaries to pay and discharge, before the same shall become delinquent, (i)
all taxes, assessments and governmental charges or levies imposed upon it or
upon its property and (ii) all lawful claims that, if unpaid, might by law
become a Lien upon its property; provided, however, that neither Loan Party nor
any of its Subsidiaries shall be required to pay or discharge any such tax,

                            364-Day Credit Agreement

<PAGE>
                                      -38-

assessment, charge or claim that is being contested in good faith and by proper
proceedings and as to which appropriate reserves are being maintained, unless
and until any Lien resulting therefrom attaches to its property and becomes
enforceable against its other creditors and such Lien would be reasonably likely
to have a Material Adverse Effect.

            (c) Preservation of Corporate Existence, Etc. Preserve and maintain,
and cause each of its Material Subsidiaries to preserve and maintain, its
corporate existence, rights (charter and statutory) and franchises; provided,
however, that each Loan Party and its Material Subsidiaries may consummate any
merger or consolidation permitted under Section 5.02(b) and provided further
that neither Loan Party nor any of its Material Subsidiaries shall be required
to preserve any right or franchise if the Board of Directors of such Loan Party
or such Subsidiary shall determine that the preservation thereof is no longer
desirable in the conduct of the business of such Loan Party or such Subsidiary,
as the case may be, and that the loss thereof is not disadvantageous in any
material respect to such Loan Party, such Subsidiary or the Lenders.

            (d) Reporting Requirements. Furnish to the Lenders:

            (i) as soon as available and in any event within 45 days after the
      end of each of the first three Fiscal Quarters of each Fiscal Year of the
      Company, the Consolidated balance sheet of the Company and its
      Subsidiaries as of the end of such quarter and Consolidated statements of
      operations and cash flows of the Company and its Subsidiaries for the
      period commencing at the end of the previous Fiscal Year and ending with
      the end of such Fiscal Quarter, duly certified (subject to year-end audit
      adjustments) by the chief financial officer of the Company as having been
      prepared in accordance with GAAP, it being agreed that delivery of the
      Company's Quarterly Report on Form 10-Q will satisfy this requirement;

            (ii) as soon as available and in any event within 90 days after the
      end of each Fiscal Year of the Company, a copy of the annual audit report
      for such year for the Company and its Subsidiaries, containing the
      Consolidated balance sheet of the Company and its Subsidiaries as of the
      end of such Fiscal Year and Consolidated statements of operations and cash
      flows of the Company and its Subsidiaries for such Fiscal Year, in each
      case accompanied by an opinion by KPMG Peat Marwick or other independent
      public accountants of nationally recognized standing, it being agreed that
      delivery of the Company's Annual Report on Form 10-K will satisfy this
      requirement;

            (iii) as soon as possible and in any event within five days after
      the occurrence of each Default continuing on the date of such statement, a
      statement of the chief financial officer of the Company setting forth
      details of such Default and the action that the Company has taken and
      proposes to take with respect thereto; and

            (iv) promptly after the sending or filing thereof, copies of all
      annual reports and proxy solicitations that the Company sends to any of
      its securityholders, and copies of all reports on Form 8-K that the
      Company or any Subsidiary files with the Securities and Exchange
      Commission.

                            364-Day Credit Agreement

<PAGE>
                                      -39-

      SECTION 5.02. Negative Covenants. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, neither Loan Party
will:

            (a) Secured Debt. Create or suffer to exist, or permit any of its
Restricted Subsidiaries or the Guarantor to create or suffer to exist, any Debt
secured by a Lien on any Principal Property or on any shares of stock of or Debt
of any Restricted Subsidiary or the Guarantor unless such Loan Party or such
Restricted Subsidiary secures or causes such Restricted Subsidiary or the
Guarantor to secure the Advances and all other amounts payable under this
Agreement equally and ratably with such secured Debt, so long as such secured
Debt shall be so secured, unless after giving effect thereto the aggregate
amount of all such Debt so secured does not exceed 15% of Consolidated Net
Tangible Assets; provided that the foregoing restriction does not apply to Debt
secured by:

            (i) Liens existing prior to the date hereof;

            (ii) Liens on property of, or on shares of stock of or Debt of, any
      corporation existing at the time such corporation becomes a Restricted
      Subsidiary;

            (iii) Liens in favor of a Loan Party or any Restricted Subsidiary;

            (iv) Liens in favor of any governmental bodies to secure progress or
      advance payments;

            (v) Liens on property, shares of stock or Debt existing at the time
      of acquisition thereof (including acquisition through merger or
      consolidation) or liens securing Debt incurred to finance all or any part
      of the purchase price or cost of construction of property (or additions,
      substantial repairs, alterations or substantial improvements thereto),
      provided that such Lien and the Debt secured thereby are incurred within
      365 days of the later of acquisition or completion of construction (or
      addition, repair, alteration or improvement) and full operation thereof;
      and

            (vi) any extension, renewal or refunding of Debt referred to in the
      foregoing clauses (i) to (v), inclusive.

            (b) Mergers, Etc. (i) Merge or consolidate with or into any
corporation or (ii) sell, lease, transfer or otherwise dispose of all or
substantially all of the assets of the Company and its Subsidiaries, taken as a
whole, unless the Company or the Guarantor would be the acquiring or surviving
party in such transaction and no Event of Default shall have occurred and be
continuing at the time of such proposed transaction or would result therefrom.

            (c) Subsidiary Debt. Permit any Restricted Subsidiary to create,
incur, assume or permit to exist any Debt, except:

            (i) Debt of the Borrowing Subsidiaries, if any, created hereunder
      and under the 5-Year Facility;

                            364-Day Credit Agreement

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                                      -40-

            (ii) Debt existing on the Effective Date;

            (iii) Debt of any Subsidiary to any Loan Party or any other
      Subsidiary;

            (iv) Debt of any Person that becomes a Subsidiary after the date
      hereof; provided that such Debt exists at the time such Person becomes a
      Subsidiary and is not created in contemplation of or in connection with
      such Person becoming a Subsidiary;

            (v) any refinancing, refunding or replacement of any Debt permitted
      under clause (ii) through (iv) above; and

            (vi) other Debt in an aggregate principal amount not exceeding 15%
      of Consolidated Net Tangible Assets, computed as of the last day of the
      then most recently concluded fiscal quarter of the Company, at any time
      outstanding.

            (d) Restrictive Agreements. Neither Loan Party will enter into,
incur or permit to exist any agreement or other arrangement that prohibits or
restricts the ability of any Subsidiary to pay dividends or other distributions
with respect to any shares of its capital stock or to make or repay loans or
advances to, or otherwise transfer assets to the Company; provided that the
foregoing shall not apply to (i) restrictions and conditions imposed by law or
by this Agreement or the 5-Year Facility, (ii) customary restrictions and
conditions contained in agreements relating to the sale of a Subsidiary pending
such sale, provided such restrictions and conditions apply only to the
Subsidiary that is to be sold and such sale is permitted hereunder, (iii)
restrictions or conditions imposed by any agreement relating to secured Debt
permitted by this Agreement if such restrictions or conditions apply only to the
property or assets securing such Debt, (iv) customary provisions in leases and
other contracts restricting the assignment thereof, (v) any agreement in effect
on the Effective Date, as any such agreement is in effect on such date, (vi) any
agreement binding upon such Subsidiary prior to the date on which such
Subsidiary was acquired by the Company and outstanding on such date, (vii)
customary net worth and other financial maintenance covenants in an agreement
relating to Debt or other obligations incurred in compliance with this
Agreement, and (viii) any agreement refinancing, renewing or replacing any
agreement or Debt referred to in (i) through (vii) above, provided that the
relevant provisions are no more restrictive than those in the agreement or Debt
being refinanced, renewed or replaced.

            (e) Ownership. In the case of the Company, cease to own, legally and
beneficially, 75% or more of the membership interests in the Guarantor.

      SECTION 5.03. Financial Covenants. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Company will not:

            (a) Debt to Capitalization Ratio. Permit the Debt to Capitalization
Ratio as at the last day of any Fiscal Quarter that is not an Alternate Covenant
Date to exceed 0.75 to 1.0.

                            364-Day Credit Agreement

<PAGE>
                                      -41-

            (b) Consolidated Leverage Ratio. Permit the Consolidated Leverage
Ratio as at the last day of any Fiscal Quarter that is an Alternate Covenant
Date to exceed 5.0 to 1.0.

                                   ARTICLE VI

                                EVENTS OF DEFAULT

      SECTION 6.01. Events of Default. If any of the following events ("Events
of Default") shall occur and be continuing:

            (a) Any Borrower shall fail to pay any principal of, or interest on,
any Advance or to make any other payment under this Agreement, in each case
within five days after the same becomes due and payable; or

            (b) Any representation or warranty made by any Loan Party herein or
by any Borrower (or any of its officers) in connection with this Agreement
(including without limitation by any Borrowing Subsidiary pursuant to any
Designation Letter) shall prove to have been incorrect in any material respect
when made; or

            (c) Any Loan Party shall fail to perform or observe any term,
covenant or agreement contained in Section 5.01(d), 5.02 or 5.03, or (ii) any
Loan Party shall fail to perform or observe any other term, covenant or
agreement contained in this Agreement on its part to be performed or observed if
such failure shall remain unremedied for 30 days after written notice thereof
shall have been given to either Loan Party by the Agent or any Lender; or

            (d) Any Loan Party or any of its Subsidiaries shall fail to pay any
principal of or premium or interest on any Debt that is outstanding in a
principal or notional amount of at least $75,000,000 in the aggregate (but
excluding Debt outstanding hereunder) of such Loan Party or such Subsidiary (as
the case may be), when the same becomes due and payable (whether by scheduled
maturity, required prepayment, acceleration, demand or otherwise), and such
failure shall continue after the applicable grace period, if any, specified in
the agreement or instrument relating to such Debt; or any other event shall
occur or condition shall exist under any agreement or instrument relating to any
such Debt and shall continue after the applicable grace period, if any,
specified in such agreement or instrument, if the effect of such event or
condition is to accelerate the maturity of such Debt or permit (with or without
the giving of notice, the lapse of time or both) the holder or holders of such
Debt or any trustee or agent on its or their behalf to cause any such Debt to
become due prior to its scheduled maturity; or any such Debt shall be declared
to be due and payable, or required to be prepaid or redeemed (other than by a
regularly scheduled required prepayment or redemption), purchased or defeased,
or an offer to prepay, redeem, purchase or defease such Debt shall be required
to be made, in each case prior to the stated maturity thereof; or

            (e) Any Loan Party or any of its Subsidiaries shall generally not
pay its debts as such debts become due, or shall admit in writing its inability
to pay its debts generally, or shall make a general assignment for the benefit
of creditors; or any proceeding shall be instituted by or

                            364-Day Credit Agreement

<PAGE>
                                      -42-

against such Loan Party or any of its Subsidiaries seeking to adjudicate it a
bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief, or composition of it or its debts
under any law relating to bankruptcy, insolvency or reorganization or relief of
debtors, or seeking the entry of an order for relief or the appointment of a
receiver, trustee, custodian or other similar official for it or for any
substantial part of its property and, in the case of any such proceeding
instituted against it (but not instituted by it), either such proceeding shall
remain undismissed or unstayed for a period of 30 days, or any of the actions
sought in such proceeding (including, without limitation, the entry of an order
for relief against, or the appointment of a receiver, trustee, custodian or
other similar official for, it or for any substantial part of its property)
shall occur; or such Loan Party of any of its Subsidiaries shall take any
corporate action to authorize any of the actions set forth above in this
subsection (e); or

            (f) Any judgment or order for the payment of money in excess of
$75,000,000 shall be rendered against any Loan Party or any of its Material
Subsidiaries and either (i) enforcement proceedings shall have been commenced by
any creditor upon such judgment or order or (ii) there shall be any period of 10
consecutive days during which a stay of enforcement of such judgment or order,
by reason of a pending appeal or otherwise, shall not be in effect; provided,
however, that any such judgment or order shall not be an Event of Default under
this Section 6.01(f) if and for so long as (i) the amount of such judgment or
order is covered by a valid and binding policy of insurance between the
defendant and the insurer covering payment thereof and (ii) such insurer, which
shall be rated at least "A" by A.M. Best Company, has been notified of, and has
not disputed the claim made for payment of, the amount of such judgment or
order; or

            (g) Any event, action or condition with respect to an employee
benefit plan of the Company subject to Title IV of ERISA results in any penalty
or action pursuant to ERISA that has a material adverse effect on the business
or financial condition of either Loan Party and its Subsidiaries, taken as a
whole; or

            (h) The Master Bottling Agreement ceases to be valid and binding and
in full force and effect; or Pepsi denies that it has any liability or
obligation under the Master Bottling Agreement and Pepsi ceases performance
thereunder; or

            (i) A Change of Control shall occur;

then, and in any such event, the Agent (i) shall at the request, or may with the
consent, of the Required Lenders, by notice to the Company, declare the
obligation of each Lender to make Advances to be terminated, whereupon the same
shall forthwith terminate, and (ii) shall at the request, or may with the
consent, of the Required Lenders, by notice to the Company, declare the
Advances, all interest thereon and all other amounts payable under this
Agreement to be forthwith due and payable, whereupon the Advances, all such
interest and all such amounts shall become and be forthwith due and payable,
without presentment, demand, protest or further notice of any kind, all of which
are hereby expressly waived by the Company; provided, however, that in the event
of an actual or deemed entry of an order for relief with respect to any Loan
Party or any Borrowing Subsidiary under the Federal Bankruptcy Code, (A) the
obligation

                            364-Day Credit Agreement

<PAGE>
                                      -43-

of each Lender to make Advances shall automatically be terminated and (B) the
Advances, all such interest and all such amounts shall automatically become and
be due and payable, without presentment, protest or any notice of any kind, all
of which are hereby expressly waived by each Loan Party.

                                   ARTICLE VII

                                    THE AGENT

            Each of the Lenders hereby irrevocably appoints the Agent as its
agent and authorizes the Agent to take such actions on its behalf and to
exercise such powers as are delegated to the Agent by the terms hereof, together
with such actions and powers as are reasonably incidental thereto.

            The bank serving as the Agent hereunder shall have the same rights
and powers in its capacity as a Lender as any other Lender and may exercise the
same as though it were not the Agent, and such bank and its Affiliates may
accept deposits from, lend money to and generally engage in any kind of business
with the Loan Parties or any Subsidiary or other Affiliate thereof as if it were
not the Agent hereunder.

            The Agent shall not have any duties or obligations except those
expressly set forth herein. Without limiting the generality of the foregoing,
(a) the Agent shall not be subject to any fiduciary or other implied duties,
regardless of whether a Default has occurred and is continuing, (b) the Agent
shall not have any duty to take any discretionary action or exercise any
discretionary powers, except discretionary rights and powers expressly
contemplated hereby that the Agent is required to exercise in writing by the
Required Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 8.01), and (c) except
as expressly set forth herein, the Agent shall not have any duty to disclose,
and shall not be liable for the failure to disclose, any information relating to
the Loan Parties or any if their Subsidiaries that is communicated to or
obtained by the bank serving as Agent or any of its Affiliates in any capacity.
The Agent shall not be liable for any action taken or not taken by it with the
consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as
provided in Section 8.01) or in the absence of its own gross negligence or
wilful misconduct. The Agent shall be deemed not to have knowledge of any
Default unless and until written notice thereof is given to the Agent by a Loan
Party or a Lender, and the Agent shall not be responsible for or have any duty
to ascertain or inquire into (i) any statement, warranty or representation made
in or in connection with this Agreement, (ii) the contents of any certificate,
report or other document delivered hereunder or in connection herewith, (iii)
the performance or observance of any of the covenants, agreements or other terms
or conditions set forth herein, (iv) the validity, enforceability, effectiveness
or genuineness of this Agreement or any other agreement, instrument or document,
or (v) the satisfaction of any condition set forth in Article III or elsewhere
herein, other than to confirm receipt of items expressly required to be
delivered to the Agent.

            The Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other

                            364-Day Credit Agreement

<PAGE>
                                      -44-

writing believed by it to be genuine and to have been signed or sent by the
proper Person. The Agent also may rely upon any statement made to it orally or
by telephone and believed by it to be made by the proper Person, and shall not
incur any liability for relying thereon. The Agent may consult with legal
counsel (who may be counsel for any Loan Party), independent accountants and
other experts selected by it, and shall not be liable for any action taken or
not taken by it in accordance with the advice of any such counsel, accountants
or experts.

            The Agent may perform any and all of its duties and exercise its
rights and powers by or through any one or more sub-agents appointed by the
Agent. The Agent and any such sub-agent may perform any and all of its duties
and exercise its rights and powers through their respective Related Parties. The
exculpatory provisions of the preceding paragraphs shall apply to any such
sub-agent and to the Related Parties of the Agent and any such sub-agent, and
shall apply to their respective activities in connection with the syndication of
the credit facilities provided for herein as well as activities as Agent.

            Subject to the appointment and acceptance of a successor Agent as
provided in this paragraph, the Agent may resign at any time by notifying the
Lenders and the Company. Upon any such resignation, the Required Lenders shall
have the right to appoint a successor agent approved by the Company, which
approval will not be unreasonably withheld or delayed; provided that such
approval shall not be required if an Event of Default has occurred and is
continuing. If no successor shall have been so appointed by the Required Lenders
and shall have accepted such appointment within 30 days after the retiring Agent
gives notice of its resignation, then the retiring Agent may, on behalf of the
Lenders, appoint a successor Agent which shall be a commercial bank organized
under the laws of the United States or any State thereof, having a combined
capital and surplus of at least $50,000,000 with an office in New York, New
York, or an Affiliate of any such bank. Upon the acceptance of its appointments
as Agent hereunder by a successor, such successor shall succeed to and become
vested with all the rights, powers, privileges and duties of the retiring Agent,
and the retiring Agent shall be discharged from its duties and obligations
hereunder. The fees payable by the Company to a successor Agent shall be the
same as those payable to its predecessor unless otherwise agreed between the
Company and such successor. After the Agent's resignation hereunder, the
provisions of this Article and Section 8.04 shall continue in effect for the
benefit of such retiring Agent, its sub-agents and their respective Related
Parties in respect of any actions taken or omitted to be taken by any of them
while it was acting as Agent.

            Each Lender acknowledges that it has, independently and without
reliance upon the Agent or any other Lender and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender also acknowledges that it
will, independently and without reliance upon the Agent or any other Lender and
based on such documents and information as it shall from time to time deem
appropriate, continue to make its own decisions in taking or not taking action
under or based upon this Agreement, any related agreement or any document
furnished hereunder or thereunder.

                            364-Day Credit Agreement

<PAGE>
                                      -45-

                                  ARTICLE VIII

                                  MISCELLANEOUS

      SECTION 8.01. Amendments, Etc. No amendment or waiver of any provision of
this Agreement, nor consent to any departure by any Borrower therefrom, shall in
any event be effective unless the same shall be in writing and signed by the
Required Lenders, and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given; provided,
however, that no amendment, waiver or consent shall, unless in writing and
signed by all the Lenders, do any of the following: (a) except pursuant to
Section 2.05(b), 2.05(c), 2.15 or 2.17, increase the Commitments of the Lenders
or subject the Lenders to any additional obligations, (b) reduce the principal
of, or interest on, the Revolving Credit Advances or any fees or other amounts
payable hereunder, (c) postpone any date fixed for any payment of principal of,
or interest on, the Revolving Credit Advances or any fees or other amounts
payable hereunder, (d) change the percentage of the Commitments or of the
aggregate unpaid principal amount of the Revolving Credit Advances, or the
number of Lenders, that shall be required for the Lenders or any of them to take
any action hereunder, (e) release the guarantee as set forth in Section 9.01 or
10.01, or (f) amend this Section 8.01; and provided further that no amendment,
waiver or consent shall, unless in writing and signed by the Agent in addition
to the Lenders required above to take such action, affect the rights or duties
of the Agent under this Agreement.

      SECTION 8.02. Notices, Etc. All notices and other communications provided
for hereunder shall be in writing (including telecopier, telegraphic or telex
communication) and mailed, telecopied, telegraphed, telexed or delivered, if to
the Company, any Borrower or the Guarantor, to the Company at its address at One
Pepsi Way, Somers, New York 10589, Attention: General Counsel, Telecopier No.
(914) 767-1161, with a copy to Secretary, Telecopier No. (914) 767-1161; if to
any Initial Lender, at its Domestic Lending Office specified opposite its name
on Schedule 1 hereto; if to any other Lender, at its Domestic Lending Office
specified in the Assignment and Acceptance pursuant to which it became a Lender;
and if to the Agent, at the Assignment and Acceptance pursuant to which it
became a Lender; and if to the Agent, at JPMorgan Chase Bank, Loan & Agency
Services, 1111 Fannin, Floor 10, Houston, Texas, 77002, Attention of Cherry
Arnaez (Telecopier No. (713) 750-2894), with a copy to JPMorgan Chase Bank, 270
Park Avenue, New York, New York 10017, Attention of Buddy Wuthrich (Telecopier
No. (212) 270-5127); or, as to the Company, any Borrower, the Guarantor or the
Agent, at such other address as shall be designated by such party in a written
notice to the other parties and, as to each other party, at such other address
as shall be designated by such party in a written notice to the Company and the
Agent. All such notices and communications shall, when mailed, telecopied,
telegraphed or telexed, be effective when deposited in the mails, telecopied,
delivered to the telegraph company or confirmed by telex answer back,
respectively, except that notices and communications to the Agent pursuant to
Article II, III or VII shall not be effective until received by the Agent.

                            364-Day Credit Agreement

<PAGE>
                                      -46-

      SECTION 8.03. No Waiver; Remedies. No failure on the part of any Lender or
the Agent to exercise, and no delay in exercising, any right hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such right preclude any other or further exercise thereof or the exercise of any
other right. The remedies herein provided are cumulative and not exclusive of
any remedies provided by law.

      SECTION 8.04. Costs and Expenses.

            (a) The Company agrees to pay on demand all costs and expenses of
the Agent as set forth in the fee letter between the Company and the Agent. The
Company further agrees to pay on demand all reasonable costs and expenses of the
Agent and the Lenders, if any (including, without limitation, reasonable counsel
fees and expenses), in connection with the enforcement (whether through
negotiations, legal proceedings or otherwise) of this Agreement and the other
documents to be delivered hereunder, including, without limitation, reasonable
fees and expenses of counsel for the Agent and each Lender in connection with
the enforcement of rights under this Section 8.04(a).

            (b) The Company agrees to indemnify and hold harmless the Agent and
each Lender and each of their Affiliates and their officers, directors,
employees, agents and advisors (each, an "Indemnified Party") from and against
any and all claims, damages, losses, liabilities and expenses (including,
without limitation, reasonable fees and expenses of counsel) that may be
incurred by or asserted or awarded against any Indemnified Party, in each case
arising out of or in connection with or by reason of, or in connection with the
preparation for a defense of, any investigation, litigation or proceeding
arising out of, related to or in connection with this Agreement, any promissory
note issued hereunder, any of the transactions contemplated herein or the actual
or proposed use of the proceeds of the Advances, whether or not such
investigation, litigation or proceeding is brought by any Borrower, the
Guarantor, their directors, shareholders or creditors or an Indemnified Party or
any other Person or any Indemnified Party is otherwise a party thereto and
whether or not the transactions contemplated hereby are consummated, except to
the extent such claim, damage, loss, liability or expense is found in a final,
non-appealable judgment by a court of competent jurisdiction to have resulted
from such Indemnified Party's gross negligence or willful misconduct.

            (c) To the extent that the Company fails to pay any amount required
to be paid by it to the Agent under paragraph (a) or (b) of this Section 8.04,
each Lender severally agrees to pay to the Agent such Lenders' Applicable
Percentage (determined as of the time that the applicable unreimbursed expense
or indemnity payment is sought) of such unpaid amount; provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against the Agent in
its capacity as such.

            (d) If any payment of principal of, or Conversion of, any Eurodollar
Rate Advance or LIBO Rate Advance is made by any Borrower to or for the account
of a Lender other than on the last day of the Interest Period for such Advance,
as a result of a payment or Conversion pursuant to Section 2.08(d) or (e), 2.10
or 2.12, acceleration of the maturity of the Advances

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<PAGE>
                                      -47-

pursuant to Section 6.01 or for any other reason, the Company shall, upon demand
by such Lender (with a copy of such demand to the Agent), pay to the Agent for
the account of such Lender any amounts required to compensate such Lender for
any additional losses, costs or expenses that it may reasonably incur as a
result of such payment or Conversion, including, without limitation, any loss,
cost or expense incurred by reason of the liquidation or reemployment of
deposits or other funds acquired by any Lender to fund or maintain such Advance.

            (e) Without prejudice to the survival of any other agreement of any
Borrower hereunder, the agreements and obligations of the Company contained in
Sections 2.11, 2.14 and 8.04 shall survive the payment in full of principal,
interest and all other amounts payable hereunder.

      SECTION 8.05. Right of Set-off. Upon (i) the occurrence and during the
continuance of any Event of Default and (ii) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the Agent to
declare the Advances due and payable pursuant to the provisions of Section 6.01,
each Lender and each of its Affiliates is hereby authorized at any time and from
time to time, to the fullest extent permitted by law, to set off and apply any
and all deposits (general or special, time or demand, provisional or final) at
any time held and other indebtedness at any time owing by such Lender or such
Affiliate to or for the credit or the account of any Loan Party or any Borrower
against any and all of the obligations of such Loan Party or such Borrower now
or hereafter existing under this Agreement, whether or not such Lender shall
have made any demand under this Agreement and although such obligations may be
unmatured. Each Lender agrees promptly to notify the Company after any such
set-off and application, provided that the failure to give such notice shall not
affect the validity of such set-off and application. The rights of each Lender
and its Affiliates under this Section are in addition to other rights and
remedies (including, without limitation, other rights of set-off) that such
Lender and its Affiliates may have.

      SECTION 8.06. Binding Effect. This Agreement shall become effective (other
than Sections 2.01 and 2.03, which shall only become effective upon satisfaction
of the conditions precedent set forth in Section 3.01) when it shall have been
executed by the Loan Parties and the Agent and when the Agent shall have been
notified by each Initial Lender that such Initial Lender has executed it and
thereafter shall be binding upon and inure to the benefit of the Loan Parties,
each Subsidiary Borrower (if any), the Agent and each Lender and their
respective successors and assigns, except that no Borrower shall have the right
to assign its rights hereunder or any interest herein without the prior written
consent of the Lenders.

      SECTION 8.07. Assignments and Participations.

            (a) Each Lender may, upon ten days' notice to the Agent and with the
consent of the Company (which shall not be unreasonably withheld) and, if
demanded by the Company (following a demand by such Lender pursuant to Section
2.11 or Section 2.14 or a suspension of such Lender's obligation to make or
continue Advances as, or convert Advances into, Eurodollar Rate Advances
pursuant to Section 2.12) upon at least ten days' notice to such Lender and the

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<PAGE>
                                      -48-

Agent, will assign to one or more Persons all or a portion of its rights and
obligations under this Agreement (including, without limitation, all or a
portion of its Commitment and the Revolving Credit Advances owing to it);
provided, however, that (i) each such assignment shall be of a constant, and not
a varying, percentage of all rights and obligations under this Agreement (other
than any right to make Competitive Bid Advances or Competitive Bid Advances
owing to it), (ii) except in the case of an assignment to a Person that,
immediately prior to such assignment, was a Lender or an assignment of all of a
Lender's rights and obligations under this Agreement, the amount of the
Commitment of the assigning Lender being assigned pursuant to each such
assignment (determined as of the date of the Assignment and Acceptance with
respect to such assignment) shall in no event be less than the lesser of (x)
$25,000,000 and (y) the smallest initial Commitment of any Initial Lender, (iii)
each such assignment shall be to an Eligible Assignee, (iv) each such assignment
made as a result of a demand by the Company pursuant to this Section 8.07(a)
shall be arranged by the Company after consultation with the Agent and shall be
either an assignment of all of the rights and obligations of the assigning
Lender under this Agreement or an assignment of a portion of such rights and
obligations made concurrently with another such assignment or other such
assignments that together cover all of the rights and obligations of the
assigning Lender under this Agreement, (v) no Lender shall be obligated to make
any such assignment as a result of a demand by the Company pursuant to this
Section 8.07(a) unless and until such Lender shall have received one or more
payments from either the Company or one or more Eligible Assignees in an
aggregate amount at least equal to the aggregate outstanding principal amount of
the Advances owing to such Lender, together with accrued interest thereon to the
date of payment of such principal amount and all other amounts payable to such
Lender under this Agreement and (vi) the parties to each such assignment shall
execute and deliver to the Agent, for its acceptance and recording in the
Register (as defined in clause (d) below), an Assignment and Acceptance,
together with a processing and recordation fee of $3,500. Upon such execution,
delivery, acceptance and recording, from and after the effective date specified
in each Assignment and Acceptance, (x) 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, have the rights and
obligations of a Lender hereunder and (y) the Lender assignor thereunder shall,
to the extent that rights and obligations hereunder have been assigned by it
pursuant to such Assignment and Acceptance, relinquish its rights 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 an assigning
Lender's rights and obligations under this Agreement, such Lender shall cease to
be a party hereto).

            (b) By executing and delivering an Assignment and Acceptance, the
Lender assignor thereunder and the assignee thereunder confirm to and agree with
each other and the other parties hereto as follows: (i) other than as provided
in such Assignment and Acceptance, such assigning Lender makes no representation
or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of this Agreement or any other instrument or document furnished pursuant
hereto; (ii) such assigning Lender makes no representation or warranty and
assumes no responsibility with respect to the financial condition of any
Borrower or the performance or observance by any Borrower of any of its
obligations under this Agreement or any other instrument or document furnished
pursuant hereto; (iii) such assignee confirms that it has received a copy of
this

                            364-Day Credit Agreement

<PAGE>
                                      -49-

Agreement, together with copies of the financial statements referred to in
Section 4.01 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Assignment and Acceptance; (iv) such assignee will, independently and without
reliance upon the Agent, such assigning Lender 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 decisions in taking or not taking action under
this Agreement; (v) such assignee confirms that it is an Eligible Assignee; (vi)
such assignee appoints and authorizes the Agent to take such action as agent on
its behalf and to exercise such powers and discretion under this Agreement as
are delegated to the Agent by the terms hereof, together with such powers and
discretion as are reasonably incidental thereto; and (vii) such assignee agrees
that it will perform in accordance with their terms all of the obligations that
by the terms of this Agreement are required to be performed by it as a Lender.

            (c) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an assignee representing that it is an Eligible Assignee,
the Agent shall, if such Assignment and Acceptance has been completed and is in
substantially the form of Exhibit B hereto, (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the Register and
(iii) give prompt notice thereof to the Company.

            (d) The Agent shall maintain at its address referred to in Section
8.02 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, with respect to Lenders, the Commitment of, and principal amount of the
Advances 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 each Borrower, the 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. The Register shall be available for inspection by
the Loan Parties or any Lender at any reasonable time and from time to time upon
reasonable prior notice.

            (e) Notwithstanding anything to the contrary contained herein, any
Lender (a "Granting Lender") may grant to a special purpose funding vehicle (a
"SPC"), identified as such in writing from time to time by the Granting Lender
to the Agent and the Company, the option to provide to the Company all or any
part of any Advance that such Granting Lender would otherwise be obligated to
make to the Company pursuant to this Agreement; provided that (i) nothing herein
shall constitute a commitment by any SPC to make any Advance, (ii) if an SPC
elects not to exercise such option or otherwise fails to provide all or any part
of such Advance, the Granting Lender shall be obligated to make such Advance
pursuant to the terms hereof. The making of an Advance by an SPC hereunder shall
utilize the Commitment of the Granting Lender to the same extent, and as if,
such Advance were made by such Granting Lender. Each party hereto agrees that no
SPC shall be liable for any indemnity or similar payment obligation under this
Agreement (all liability for which shall remain with the Granting Lender). In
furtherance of the foregoing, each party hereto hereby agrees (which agreement
shall survive the termination of this Agreement) that, prior to the date that is
one year and one day after the payment in full of all outstanding commercial
paper or other senior indebtedness of any SPC, it will not institute against, or
join any other person in instituting against, such SPC any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings under the
laws

                            364-Day Credit Agreement

<PAGE>
                                      -50-

of the United States or any State thereof. In addition, notwithstanding anything
to the contrary contained in this Section 8.07(e), any SPC may (i) with notice
to, but without the prior written consent of, the Company and the Agent and
without paying any processing fee therefor, assign all or a portion of its
interests in any Advances to the Granting Lender or to any financial
institutions (consented to by the Company and the Agent) providing liquidity
and/or credit support to or for the account of any SPC to support the funding or
maintenance of Advances and (ii) disclose on a confidential basis any non-public
information relating to its Advances to any rating agency, commercial paper
dealer or provider of any surety, guarantee or credit or liquidity enhancement
to such SPC.

            (f) Each Lender may, upon notice to the Agent and the Company, sell
participations to one or more banks or other entities in or to all or a portion
of its rights and obligations under this Agreement (including, without
limitation, all or a portion of its Commitment and the Advances owing to it);
provided, however, that (i) such Lender's obligations under this Agreement
(including, without limitation, its Commitment hereunder) shall remain
unchanged, (ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations, (iii) such Lender shall remain
the holder of any promissory note issued or assigned to it hereunder, (iv) the
Borrowers, the Guarantor, the 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 (v) no participant under any such
participation shall have any right to approve any amendment or waiver of any
provision of this Agreement, or any consent to any departure by any Borrower
therefrom, except to the extent that such amendment, waiver or consent would
reduce the principal of, or interest on, the Advances or any fees or other
amounts payable hereunder, in each case to the extent subject to such
participation, or postpone any date fixed for any payment of principal of, or
interest on, the Advances or any fees or other amounts payable hereunder, in
each case to the extent subject to such participation.

            (g) Any Lender may, in connection with any assignment or
participation or proposed assignment or participation pursuant to this Section
8.07, disclose to the assignee or participant or proposed assignee or
participant any information relating to any Loan Party or any Borrower furnished
to such Lender by or on behalf of any Loan Party or any Borrower; provided that,
prior to any such disclosure, the assignee or participant or proposed assignee
or participant shall agree to preserve the confidentiality of any Confidential
Information relating to the Loan Parties or the Borrowers received by it from
such Lender.

            (h) Notwithstanding any other provision set forth in this Agreement,
any Lender may at any time create a security interest in all or any portion of
its rights under this Agreement or any promissory note issued to such Lender
hereunder (including, without limitation, the Advances owing to it) in favor of
any Federal Reserve Bank in accordance with Regulation A of the Board of
Governors of the Federal Reserve System.

                            364-Day Credit Agreement

<PAGE>
                                      -51-

      SECTION 8.08. Confidentiality. Neither the Agent nor any Lender shall
disclose any Confidential Information to any Person without the consent of the
Company, other than (a) to the Agent's or such Lender's Affiliates and their
officers, directors, employees, agents and advisors and to actual or prospective
assignees and participants, and then only on a confidential basis, (b) as
required by any law, rule or regulation or judicial process, (c) to any rating
agency when required by it and (d) as requested or required by any state,
federal or foreign authority or examiner regulating banks or banking.
Notwithstanding the foregoing and any other provision herein, the Loan Parties
and any Lender (and each employee, representative or other agent of the Loan
Parties and any Lender) may disclose to any and all Persons, without limitation
of any kind, the U.S. federal income tax treatment and tax structure, if any, of
the transactions contemplated by this Agreement (the "Transactions"), other than
information for which nondisclosure is reasonably necessary in order to comply
with applicable securities laws. For the purposes of this Section 8.08, "tax
structure" is limited to any fact relevant to understanding the U.S. federal
income tax treatment of the Transactions and does not include information
relating to the identity of the Loan Parties.

      SECTION 8.09. Governing Law. This Agreement shall be governed by, and
construed in accordance with, the law of the State of New York.

      SECTION 8.10. Execution in Counterparts. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of a signature page to this Agreement by
telecopier shall be effective as delivery of a manually executed counterpart of
this Agreement.

      SECTION 8.11. Jurisdiction, Etc.

            (a) Each of the parties hereto hereby irrevocably and
unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of any New York State court or federal court of the United States
of America sitting in New York City, and any appellate court from any thereof,
in any action or proceeding arising out of or relating to this Agreement, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in any such New York State
court or, to the extent permitted by law, in such federal court. Each of the
parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement shall
affect any right that any party may otherwise have to bring any action or
proceeding relating to this Agreement in the courts of any jurisdiction.

                            364-Day Credit Agreement

<PAGE>
                                      -52-

            (b) Each of the parties hereto irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection that it may now or hereafter have to the laying of venue of any suit,
action or proceeding arising out of or relating to this Agreement in any New
York State or federal court sitting in New York City. Each of the parties hereto
hereby irrevocably waives, to the fullest extent permitted by law, the defense
of an inconvenient forum to the maintenance of such action or proceeding in any
such court.

      SECTION 8.12. WAIVER OF JURY TRIAL. EACH BORROWER, THE GUARANTOR, THE
AGENT AND THE LENDERS HEREBY IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS OF THE
AGENT OR ANY LENDER IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR
ENFORCEMENT THEREOF.

                                   ARTICLE IX

                                COMPANY GUARANTEE

      SECTION 9.01. Company Guarantee. Subject to the provisions of this Article
IX, the Company unconditionally and irrevocably guarantees to each Lender and
the Agent and their respective successors and assigns, that: (i) the principal
of, premium, if any, and interest on the Advances to each Borrowing Subsidiary
and, following the Substitution Date, the Guarantor (each a "Guaranteed Party")
and any promissory notes issued by any Guaranteed Party hereunder will be duly
and punctually paid in full when due, whether at maturity, by acceleration, by
redemption or otherwise, and interest on overdue principal, and premium, if any,
and (to the extent permitted by law) interest on any interest, if any, on the
Advances and all other obligations of the Guaranteed Parties to the Lenders or
the Agent hereunder (including fees and expenses) will be promptly paid in full,
all in accordance with the terms hereof; and (ii) in case of any extension of
time of payment or renewal of any of the Advances to any Guaranteed Party or any
of such other obligations, the same will be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at
stated maturity, by acceleration or otherwise. Failing payment when due of any
amount so guaranteed, or failing performance of any other obligation of the
Guaranteed Parties to the Lenders or the Agent, for whatever reason, the Company
will be obligated to pay, or to perform or to cause the performance of, the same
immediately. An Event of Default under this Agreement shall constitute an event
of default under this Guarantee, and shall entitle the Lenders to accelerate the
obligations of the Company under this Guarantee in the same manner and to the
same extent as the obligations of the Guaranteed Parties.

            The Company hereby agrees that its obligations under this Guarantee
shall be unconditional, irrespective of the validity, regularity or
enforceability of this Agreement, any Designation Letter or the Substitution
Letter, the absence of any action to enforce the same, any waiver or consent by
any Lender or the Agent of this Agreement any Designation Letter or the

                            364-Day Credit Agreement

<PAGE>
                                      -53-

Substitution Letter, with respect to any thereof, the entry of any judgment
against any Guaranteed Party, any action to enforce the same or any other
circumstance which might otherwise constitute a legal or equitable discharge or
defense of the Company. The Company hereby waives and relinquishes: (a) any
right to require the Agent, the Lenders or any Guaranteed Party (each, a
"Benefitted Party") to proceed against any Guaranteed Party or any other Person
or to proceed against or exhaust any security held by a Benefitted Party at any
time or to pursue any other remedy in any secured party's power before
proceeding against the Company; (b) any defense that may arise by reason of the
incapacity, lack of authority, death or disability of any other Person or
Persons or the failure of a Benefitted Party to file or enforce a claim against
the estate (in administration, bankruptcy or any other proceeding) of any other
Person or Persons; (c) demand, protest and notice of any kind (except as
expressly required by this Agreement), including but not limited to notice of
the existence, creation or incurring of any new or additional Debt or obligation
or of any action or non-action on the part of the Company, any Benefitted Party,
any creditor of the Company or any Guaranteed Party or on the part of any other
Person whomsoever in connection with any obligations the performance of which
are guaranteed under this Guarantee; (d) any defense based upon an election of
remedies by a Benefitted Party, including but not limited to an election to
proceed against the Company or any other Guaranteed Party for reimbursement; (e)
any defense based upon any statute or rule of law which provides that the
obligation of a surety must be neither larger in amount nor in other respects
more burdensome than that of the principal; (f) any defense arising because of a
Benefitted Party's election, in any proceeding instituted under the Bankruptcy
Code, of the application of Section 1111(b)(2) of the Bankruptcy Code; and (g)
any defense based on any borrowing or grant of a security interest under Section
364 of the Bankruptcy Code. The Company hereby covenants that this Guarantee
will not be discharged except by payment in full of all principal, premium, if
any, and interest on the Advances made to each Guaranteed Party and all other
costs provided for under this Agreement in respect thereof. This is a Guarantee
of payment and not of collectibility.

            If any Lender or the Agent is required by any court or otherwise to
return to either the Company or any Guaranteed Party, or any trustee or similar
official acting in relation to either the Company or any Guaranteed Party, any
amount paid by the Company or any Guaranteed Party to the Agent or such Lender,
this Guarantee, to the extent theretofore discharged, shall be reinstated in
full force and effect. The Company agrees that it will not be entitled to any
right of subrogation in relation to the Lenders or the Agent in respect of any
obligations guaranteed under this Guarantee until payment in full of all
obligations guaranteed hereby. The Company agrees that, as between it, on the
one hand, and the Lenders and the Agent, on the other hand, (x) the maturity of
the obligations guaranteed under this Guarantee may be accelerated as provided
in Article VI hereof for the purposes hereof, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
obligations guaranteed hereby, and (y) in the event of any acceleration of such
obligations as provided in Article VI hereof, such obligations (whether or not
due and payable) shall forthwith become due and payable by such Company for the
purpose of this Guarantee.

                            364-Day Credit Agreement

<PAGE>
                                      -54-

                                    ARTICLE X

                              SUBSIDIARY GUARANTEE

      SECTION 10.01. Subsidiary Guarantee. Subject to the provisions of this
Article X, the Guarantor unconditionally and irrevocably guarantees to each
Lender and the Agent and their respective successors and assigns, that: (i) the
principal of, premium, if any, and interest on the Advances and any promissory
note issued hereunder will be duly and punctually paid in full when due, whether
at maturity, by acceleration, by redemption or otherwise, and interest on
overdue principal, and premium, if any, and (to the extent permitted by law)
interest on any interest, if any, on the Advances, any promissory note issued
hereunder and all other obligations of the Company to the Lenders or the Agent
hereunder (including fees and expenses) will be promptly paid in full, all in
accordance with the terms hereof; and (ii) in case of any extension of time of
payment or renewal of any of the Advances or any of such other obligations, the
same will be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal, whether at stated maturity, by acceleration
or otherwise. Failing payment when due of any amount so guaranteed, or failing
performance of any other obligation of the Company to the Lenders or the Agent,
for whatever reason, the Guarantor will be obligated to pay, or to perform or to
cause the performance of, the same immediately. An Event of Default under this
Agreement shall constitute an event of default under this Guarantee, and shall
entitle the Lenders to accelerate the obligations of the Guarantor under this
Guarantee in the same manner and to the same extent as the obligations of the
Company.

            The Guarantor hereby agrees that its obligations under this
Guarantee shall be unconditional, irrespective of the validity, regularity or
enforceability of this Agreement, the absence of any action to enforce the same,
any waiver or consent by any Lender or the Agent of this Agreement with respect
to any thereof, the entry of any judgment against the Company, any action to
enforce the same or any other circumstance which might otherwise constitute a
legal or equitable discharge or defense of the Guarantor. The Guarantor hereby
waives and relinquishes: (a) any right to require the Agent, the Lenders or the
Company (each, a "Benefitted Person") to proceed against the Company or any
other Person or to proceed against or exhaust any security held by a Benefitted
Person at any time or to pursue any other remedy in any secured party's power
before proceeding against the Guarantor; (b) any defense that may arise by
reason of the incapacity, lack of authority, death or disability of any other
Person or Persons or the failure of a Benefitted Person to file or enforce a
claim against the estate (in administration, bankruptcy or any other proceeding)
of any other Person or Persons; (c) demand, protest and notice of any kind
(except as expressly required by this Agreement), including but not limited to
notice of the existence, creation or incurring of any new or additional Debt or
obligation or of any action or non-action on the part of the Guarantor, the
Company, any Benefitted Person, any creditor of the Guarantor, the Company or on
the part of any other Person whomsoever in connection with any obligations the
performance of which are guaranteed under this Guarantee; (d) any defense based
upon an election of remedies by a Benefitted Person, including but not limited
to an election to proceed against the Guarantor for reimbursement; (e) any
defense based upon any statute or rule of law which provides that the obligation
of a surety must be neither larger in amount nor in other respects more
burdensome than that of the principal; (f) any defense arising because of a
Benefitted Person's election, in any proceeding instituted under the Bankruptcy
Code, of the

                            364-Day Credit Agreement

<PAGE>
                                      -55-

application of Section 1111(b)(2) of the Bankruptcy Code; and (g) any defense
based on any borrowing or grant of a security interest under Section 364 of the
Bankruptcy Code. The Guarantor hereby covenants that this Guarantee will not be
discharged except by payment in full of all principal, premium, if any, and
interest on the Advances and all other costs provided for under this Agreement.
This is a Guarantee of payment and not of collectibility.

            If any Lender or the Agent is required by any court or otherwise to
return to either the Company or the Guarantor, or any trustee or similar
official acting in relation to either the Company or the Guarantor, any amount
paid by the Company or the Guarantor to the Agent or such Lender, this
Guarantee, to the extent theretofore discharged, shall be reinstated in full
force and effect. The Guarantor agrees that it will not be entitled to any right
of subrogation in relation to the Lenders or the Agent in respect of any
obligations guaranteed under this Guarantee until payment in full of all
obligations guaranteed hereby. The Guarantor agrees that, as between it, on the
one hand, and the Lenders and the Agent, on the other hand, (x) the maturity of
the obligations guaranteed under this Guarantee may be accelerated as provided
in Article VI hereof for the purposes hereof, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
obligations guaranteed hereby, and (y) in the event of any acceleration of such
obligations as provided in Article VI hereof, such obligations (whether or not
due and payable) shall forthwith become due and payable by such Guarantor for
the purpose of this Guarantee.

      SECTION 10.02. Limitation of Guarantor's Liability. The Guarantor, and by
its acceptance hereof, each Lender, hereby confirms that it is the intention of
the parties hereto that this Guarantee not constitute a fraudulent transfer or
conveyance for purposes of the Bankruptcy Code, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar Federal or
State law. To effectuate the foregoing intention, the Lenders and the Guarantor
hereby irrevocably agree that the obligations of the Guarantor under this
Article X shall be limited to the maximum amount as will, after giving effect to
all other contingent and fixed liabilities of the Guarantor, result in the
obligations of the Guarantor under the Guarantee not constituting a fraudulent
transfer or conveyance under federal or state law.

                            364-Day Credit Agreement

<PAGE>

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

                                        THE PEPSI BOTTLING GROUP, INC.,
                                        as Borrower

                                        By:_____________________________________
                                           Name:
                                           Title:

                                        BOTTLING GROUP, LLC,
                                        as Guarantor

                                        By:_____________________________________
                                           Name:
                                           Title:

                                        JPMORGAN CHASE BANK,
                                        as Agent

                                        By:_____________________________________
                                           Name:
                                           Title:

                            364-Day Credit Agreement

<PAGE>

<TABLE>
<CAPTION>
COMMITMENT                              INITIAL LENDERS
----------                              ---------------
<S>                                     <C>
$25,000,000                             CITIBANK, N.A.

                                        By:_____________________________________
                                          Name:
                                          Title:

$25,000,000                             BANK OF AMERICA, N.A.

                                        By:_____________________________________
                                          Name:
                                          Title:

$25,000,000                             CREDIT SUISSE FIRST BOSTON,
                                        CAYMAN ISLANDS BRANCH

                                        By:_____________________________________
                                          Name:
                                          Title:

$25,000,000                             DEUTSCHE BANK AG NEW YORK BRANCH

                                        By:_____________________________________
                                          Name:
                                          Title:

                                        By:_____________________________________
                                          Name:
                                          Title:
</TABLE>

                                Initial Lenders

<PAGE>
                                      -2-

<TABLE>
<S>                                     <C>
$25,000,000                             JPMORGAN CHASE BANK

                                        By:_____________________________________
                                          Name:
                                          Title:

                                        By:_____________________________________
                                          Name:
                                          Title:

$20,000,000                             THE NORTHERN TRUST COMPANY

                                        By:_____________________________________
                                          Name:
                                          Title:

                                        By:_____________________________________
                                          Name:
                                          Title:

$20,000,000                             LEHMAN BROTHERS BANK, FSB

                                        By:_____________________________________
                                          Name:
                                          Title:

                                        By:_____________________________________
                                          Name:
                                          Title:
</TABLE>

                                Initial Lenders

<PAGE>
                                      -3-

<TABLE>
<S>                                     <C>
$17,500,000                             BANCO BILBAO VIZCAYA ARGENTARIA

                                        By:_____________________________________
                                          Name:
                                          Title:

                                        By:_____________________________________
                                          Name:
                                          Title:

$17,500,000                             HSBC BANK USA

                                        By:_____________________________________
                                          Name:
                                          Title:

                                        By:_____________________________________
                                          Name:
                                          Title:

$12,500,000                             FLEET NATIONAL BANK

                                        By:_____________________________________
                                          Name:
                                          Title:

                                        By:_____________________________________
                                          Name:
                                          Title:
</TABLE>

                                Initial Lenders

<PAGE>
                                      -4-

<TABLE>
<S>                                     <C>
$12,500,000                             THE BANK OF NEW YORK

                                        By:_____________________________________
                                          Name:
                                          Title:

                                        By:_____________________________________
                                          Name:
                                          Title:

$10,000,000                             STATE STREET BANK AND TRUST COMPANY

                                        By:_____________________________________
                                          Name:
                                          Title:

                                        By:_____________________________________
                                          Name:
                                          Title:

$7,500,000                              COMERICA BANK

                                        By:_____________________________________
                                          Name:
                                          Title:

                                        By:_____________________________________
                                          Name:
                                          Title:
</TABLE>

                                Initial Lenders

<PAGE>
                                      -5-

<TABLE>
<S>                                     <C>
$7,500,000                              WELLS FARGO BANK, N.A.

                                        By:_____________________________________
                                          Name:
                                          Title:

                                        By:_____________________________________
                                          Name:
                                          Title:
</TABLE>

$250,000,000 TOTAL OF THE COMMITMENTS

                                Initial Lenders

<PAGE>

                                                                      SCHEDULE 1

                                 LENDING OFFICES

<TABLE>
<CAPTION>
Lender                           Domestic Lending Office                   Eurodollar Lending Office
<S>                              <C>                                       <C>
CITIBANK, N.A.                   399 Park Avenue                           399 Park Avenue
                                 New York New York 10043                   New York New York 10043

BANK OF AMERICA, N.A             901 Main Street, 14th Floor               901 Main Street, 14th Floor
                                 Dallas, Texas 75202                       Dallas, Texas 75202

CREDIT SUISSE  FIRST             11 Madison Avenue                         Credit Suisse First Boston
BOSTON, CAYMAN ISLANDS           New York, New York, 10010                 Cayman Islands Branch
BRANCH                                                                     c/-11 Madison Avenue
                                                                           New York, New York 10010

DEUTSCHE BANK AG NEW             90 Hudson Street                          90 Hudson Street
YORK BRANCH                      Mailstop JCY05-0511                       Mailstop JCY05-0511
                                 Jersey City, NJ 07302                     Jersey City, NJ 07302

JPMORGAN CHASE BANK              270 Park Avenue                           270 Park Avenue
                                 New York, New York 10017                  New York,  New York 10017

THE NORTHERN TRUST               50 South La Salle Street                  50 South La Salle Street
COMPANY                          Chicago, Illinois 60675                   Chicago, Illinois 60675

LEHMAN BROTHERS BANK, FSB        745 7th Avenue, 16th Floor                745 7th Avenue, 16th Floor
                                 New York, NY  10019                       New York, NY  10019

BANCO BILBAO VIZCAYA             1345 Avenue of the Americas               1345 Avenue of the Americas
ARGENTARIA                       New York, New York 10105                  New York, New York 10105

HSBC BANK USA                    452 Fifth Avenue                          452 Fifth Avenue
                                 New York, New York 10018                  New York, New York 10018

FLEET NATIONAL BANK              One Landmark Sq.                          One Landmark Sq.
                                 Stamford, Connecticut 06904               Stamford, Connecticut 06904

THE BANK OF NEW YORK             One Wall Street                           One Wall Street
                                 New York, New York 10286                  New York, New York 10286

STATE STREET BANK AND            225 Franklin Street                       225 Franklin Street
TRUST COMPANY                    Boston, MA 02110                          Boston, MA 02110

COMERICA BANK                    500 Woodward Avenue, 9th Floor            500 Woodward Avenue, 9th Floor
                                 MC 3279                                   MC 3279
                                 Detroit, Michigan 48275-3279              Detroit, Michigan 48275-3279

WELLS FARGO BANK, N.A.           70 E. 55th Street                         70 E. 55th Street
                                 New York, New York 10022                  New York, New York 10022
</TABLE>

                                   Schedule 1

<PAGE>

                                                                      SCHEDULE 2

                                PRICING SCHEDULE

<TABLE>
<CAPTION>
                                                                                     Term Out             Applicable
                           Applicable Facility                                      Applicable          Utilization Fee
Rating Level Period             Fee Rate               Applicable Margin              Margin                Rate(1)
-------------------             --------               -----------------              ------                -------
<S>                        <C>                         <C>                          <C>                 <C>
         1                         6.0 bps                   29.0 bps                70.0 bps               10.0 bps

         2                         7.0 bps                   33.0 bps                75.0 bps               10.0 bps

         3                        10.0 bps                   40.0 bps                85.0 bps               10.0 bps

         4                        15.0 bps                   47.5 bps                97.5 bps               10.0 bps

         5                        20.0 bps                   80.0 bps               150.0 bps               25.0 bps
</TABLE>

----------
(1)   Applicable if utilization exceeds 33-1/3% of Commitment amount.

                                   Schedule 2

<PAGE>

                                                                     EXHIBIT A-1

                  FORM OF NOTICE OF REVOLVING CREDIT BORROWING

JPMorgan Chase Bank, as Agent
   for the Lenders parties
   to the 364-Day Credit Agreement
   referred to below
Loan & Agency Services
1111 Fannin, Floor 10
Houston, TX 77002
Attention: Cherry Arnaez

With a copy to:
270 Park Avenue
New York, NY 10017
Attention: Buddy Wuthrich

                                                             [Date]

Ladies and Gentlemen:

            The undersigned, The Pepsi Bottling Group, Inc. (the "Company"),
refers to the 364-Day Credit Agreement, dated as of April 30, 2003 (as amended
or modified from time to time, the "Credit Agreement", the terms defined therein
being used herein as therein defined), among the undersigned, Bottling Group,
LLC (the "Guarantor"), certain Lenders parties thereto and JPMorgan Chase Bank,
as administrative agent for said Lenders, and hereby gives you notice,
irrevocably, pursuant to Section 2.02 of the Credit Agreement that the
undersigned hereby requests a Revolving Credit Borrowing under the Credit
Agreement, and in that connection sets forth below the information relating to
such Revolving Credit Borrowing (the "Proposed Revolving Credit Borrowing") as
required by Section 2.02(a) of the Credit Agreement:

      (i) The Business Day of the Proposed Revolving Credit Borrowing is
      __________, ____.

      (ii) The Type of Advances comprising the Proposed Revolving Credit
      Borrowing is [Base Rate Advances] [Eurodollar Rate Advances].

      (iii) The aggregate amount of the Proposed Revolving Credit Borrowing is
      $______.

      (iv) The identity of the Borrower is __________, a ____________
      corporation.

      [(v)] [The initial Interest Period for each Eurodollar Rate Advance made
      as part of the Proposed Revolving Credit Borrowing is ___ month[s].]

                  Form of Notice of Revolving Credit Borrowing

<PAGE>
                                      -2-

            The undersigned hereby certifies that the following statements are
true on the date hereof, and will be true on the date of the Proposed Revolving
Credit Borrowing:

      (A) the representations and warranties contained in Section 4.01 of the
Credit Agreement (except the representations set forth in the last sentence of
subsection (e) thereof and in subsection (f) thereof (other than clause (ii)
thereof)) are correct in all material respects, on and as of the date of the
Proposed Revolving Credit Borrowing, before and after giving effect to the
Proposed Revolving Credit Borrowing and to the application of the proceeds
therefrom, as though made on and as of such date; and

      (B) no event has occurred and is continuing, or would result from such
Proposed Revolving Credit Borrowing or from the application of the proceeds
therefrom, that constitutes a Default.

                                        Very truly yours,

                                        THE PEPSI BOTTLING GROUP, INC.

                                        By:_____________________________________
                                           Name:
                                           Title:

                  Form of Notice of Revolving Credit Borrowing

<PAGE>

                                                                     EXHIBIT A-2

                   FORM OF NOTICE OF COMPETITIVE BID BORROWING

JPMorgan Chase Bank, as Agent
   for the Lenders parties
   to the 364-Day Credit Agreement
   referred to below
Loan & Agency Services
1111 Fannin, Floor 10
Houston, TX 77002
Attention: Cherry Arnaez

With a copy to:
270 Park Avenue
New York, NY 10017
Attention: Buddy Wuthrich

                                                             [Date]

Ladies and Gentlemen:

            The undersigned, The Pepsi Bottling Group, Inc. (the "Company"),
refers to the 364-Day Credit Agreement, dated as of April 30, 2003 (as amended
or modified from time to time, the "Credit Agreement", the terms defined therein
being used herein as therein defined), among the undersigned, Bottling Group,
LLC (the "Guarantor"), certain Lenders parties thereto and JPMorgan Chase Bank,
as administrative agent for said Lenders, and hereby gives you notice pursuant
to Section 2.03 of the Credit Agreement that the undersigned hereby requests a
Competitive Bid Borrowing under the Credit Agreement, and in that connection
sets forth the terms on which such Competitive Bid Borrowing (the "Proposed
Competitive Bid Borrowing") is requested to be made:

            (A)      Date of Proposed
                     Competitive Bid Borrowing               ___________________
            (B)      Aggregate Amount of Proposed
                     Competitive Bid Borrowing               ___________________
            (C)      Maturity Date                           ___________________
            (D)      Interest Rate Basis                     ___________________
            (E)      Interest Payment Date(s)                ___________________
            (F)      Identity of Borrower                    ___________________

            The undersigned hereby certifies that the following statements are
true on the date hereof, and will be true on the date of the Proposed
Competitive Bid Borrowing:

                   Form of Notice of Competitive Bid Borrowing

<PAGE>
                                      -2-

            (a) the representations and warranties contained in Section 4.01
      (except the representations set forth in the last sentence of subsection
      (e) thereof and in subsection (f) thereof (other than clause (ii)
      thereof)) are correct in all material respects, on and as of the date of
      the Proposed Competitive Bid Borrowing, before and after giving effect to
      the Proposed Competitive Bid Borrowing and to the application of the
      proceeds therefrom, as though made on and as of such date; and

            (b) no event has occurred and is continuing, or would result from
      the Proposed Competitive Bid Borrowing or from the application of the
      proceeds therefrom, that constitutes a Default.

            The undersigned hereby confirms that the Proposed Competitive Bid
Borrowing is to be made available to it in accordance with Section 2.03(b) of
the Credit Agreement.

                                        Very truly yours,

                                        THE PEPSI BOTTLING GROUP, INC.

                                        By:_____________________________________
                                           Name:
                                           Title:

                   Form of Notice of Competitive Bid Borrowing

<PAGE>

                                                                     EXHIBIT A-3

                           FORM OF EXTENSION AGREEMENT

The Pepsi Bottling Group, Inc.
One Pepsi Way
Somers, New York 10589
Attention: Treasurer

JPMorgan Chase Bank, as Agent
  under the 364-Day Credit Agreement referred to below
Loan & Agency Services
1111 Fannin, Floor 10
Houston, TX 77002
Attention: Cherry Arnaez

With a copy to:
270 Park Avenue
New York, NY 10017
Attention: Buddy Wuthrich

                                                             [DATE]

Ladies and Gentlemen:

            Each undersigned Lender hereby agrees to extend, effective on
[insert effective date, which shall be no more than 29 days prior to the
existing Termination Date] (the "Extension Date"), the Termination Date under
the 364-Day Credit Agreement dated as of April 30, 2003 (as the same may be
amended, supplemented or otherwise modified from time to time, the "Credit
Agreement") among The Pepsi Bottling Group, Inc., Bottling Group, LLC, the
Lenders and agents party thereto and JPMorgan Chase Bank, as administrative
agent for the Lenders, to __________ [364 days from the effective date of this
Extension Agreement]. Terms defined in the Credit Agreement are used herein as
therein defined.

            This Agreement may be executed by one or more of the parties to this
Agreement on any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument.

                [Remainder of this page intentionally left blank]

                           Form of Extension Agreement

<PAGE>

                                                                       EXHIBIT B

                        FORM OF ASSIGNMENT AND ACCEPTANCE

            Reference is made to the 364-Day Credit Agreement dated as of April
30, 2003 (as amended or modified from time to time, the "Credit Agreement"),
among THE PEPSI BOTTLING GROUP, INC., a Delaware corporation (the "Company"),
Bottling Group, LLC (the "Guarantor"), the Lenders (as defined in the Credit
Agreement) and JPMorgan Chase Bank, as administrative agent for the Lenders (the
"Agent"). Terms defined in the Credit Agreement are used herein with the same
meaning.

            The "Assignor" and the "Assignee" referred to on Schedule 1 hereto
agree as follows:

            (1) The Assignor hereby sells and assigns to the Assignee, and the
Assignee hereby purchases and assumes from the Assignor, an interest in and to
the Assignor's rights and obligations under the Credit Agreement as of the date
hereof (other than in respect of Competitive Bid Advances) equal to the
percentage interest specified on Schedule 1 hereto of all outstanding rights and
obligations under the Credit Agreement (other than in respect of Competitive Bid
Advances). After giving effect to such sale and assignment, the Assignee's
Commitment and the amount of the Revolving Credit Advances owing to the Assignee
will be as set forth on Schedule 1 hereto.

            (2) The Assignor (i) represents and warrants that it is the legal
and beneficial owner of the interest being assigned by it hereunder and that
such interest is free and clear of any adverse claim; (ii) makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the
Credit Agreement or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Agreement or any other
instrument or document furnished pursuant thereto; and (iii) makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of the Company or the performance or observance by the
Company of any of its obligations or the obligations of any Borrower under the
Credit Agreement or any other instrument or document furnished pursuant thereto.

            (3) The Assignee (i) confirms that it has received a copy of the
Credit Agreement, together with copies of the financial statements referred to
in Section 4.01 thereof and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Acceptance; (ii) agrees that it will, independently and
without reliance upon the Agent, the Assignor 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 decisions in taking or not taking action under
the Credit Agreement; (iii) confirms that it is an Eligible Assignee; (iv)
appoints and authorizes the Agent to take such action as agent on its behalf and
to exercise such powers and discretion under the Credit Agreement as are
delegated to the Agent by the terms thereof, together with such powers and
discretion as are reasonably incidental thereto; (v) agrees that it will perform
in accordance with their terms all of the obligations that by the terms of the
Credit Agreement are required to be performed by it as a Lender; and (vi)

                        Form of Assignment and Acceptance

<PAGE>
                                      -2-

attaches any U.S. Internal Revenue Service forms required under Section 2.14 of
the Credit Agreement.

            (4) Following the execution of this Assignment and Acceptance, it
will be delivered to the Agent for acceptance and recording by the Agent. The
effective date for this Assignment and Acceptance (the "Effective Date") shall
be the date of acceptance hereof by the Agent, unless otherwise specified on
Schedule 1 hereto.

            (5) Upon such acceptance and recording by the Agent, as of the
Effective Date, (i) the Assignee shall be a party to the Credit Agreement and,
to the extent provided in this Assignment and Acceptance, have the rights and
obligations of a Lender thereunder and (ii) the Assignor shall, to the extent
provided in this Assignment and Acceptance, relinquish its rights and be
released from its obligations under the Credit Agreement.

            (6) Upon such acceptance and recording by the Agent, from and after
the Effective Date, the Agent shall make all payments under the Credit Agreement
in respect of the interest assigned hereby (including, without limitation, all
payments of principal, interest and facility fees with respect thereto) to the
Assignee. The Assignor and Assignee shall make all appropriate adjustments in
payments under the Credit Agreement for periods prior to the Effective Date
directly between themselves.

            (7) This Assignment and Acceptance shall be governed by, and
construed in accordance with, the law of the State of New York.

            (8) This Assignment and Acceptance may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Delivery of an executed
counterpart of Schedule 1 to this Assignment and Acceptance by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment
and Acceptance.

            IN WITNESS WHEREOF, the Assignor and the Assignee have caused
Schedule 1 to this Assignment and Acceptance to be executed by their officers
thereunto duly authorized as of the date specified thereon.

<PAGE>

                                   Schedule 1
                                       to
                            Assignment and Acceptance

Percentage interest assigned:                                              ___%

Assignee's Commitment:                                              $__________

Aggregate outstanding principal
amount of Revolving Credit Advances assigned:                       $__________

Effective Date(2):                                           ____________, ____

                                        [NAME OF ASSIGNOR], as Assignor

                                        By
                                        Title:

                                        Dated:                         ,

                                        [NAME OF ASSIGNEE], as Assignee

                                        By
                                        Title:

                                        Dated:                         ,

                                        Domestic Lending Office:
                                                [Address]

                                        Eurodollar Lending Office:
                                                [Address]

----------
(2)   This date should be no earlier than five Business Days after the delivery
      of this Assignment and Acceptance to the Agent.

                    Schedule 1 to Assignment and Acceptance

<PAGE>
                                      -2-

Accepted and Approved this
____ day of ________, ____

JPMORGAN CHASE BANK, as Agent

By: ___________________________________
    Name:
    Title:

Approved this ____ day
of ________, ____

THE PEPSI BOTTLING GROUP, INC.

By: ___________________________________
    Name:
    Title:

                    Schedule 1 to Assignment and Acceptance

<PAGE>

                                                                       EXHIBIT C

            FORM OF OPINION OF GENERAL COUNSEL OF THE COMPANY AND THE
                                   GUARANTOR

                                                                [Effective Date]

To each of the Lenders parties
to the 364-Day Credit Agreement dated
as of April 30, 2003
among The Pepsi Bottling Group, Inc.,
said Lenders and JPMorgan Chase Bank,
as Agent for said Lenders, and
to JPMorgan Chase Bank, as Agent

                         The Pepsi Bottling Group, Inc.

Ladies and Gentlemen:

            This opinion is furnished to you pursuant to Section 3.01(g)(v) of
the 364-Day Credit Agreement, dated as of April 30, 2003 (the "Credit
Agreement"), among The Pepsi Bottling Group, Inc. (the "Company"), Bottling
Group, LLC, (the "Guarantor"), the Lenders parties thereto and JPMorgan Chase
Bank, as Agent for said Lenders, providing for extensions of credit to be made
by said Lenders to the Company in an aggregate principal amount at any one time
outstanding of up to $250,000,000. Terms defined in the Credit Agreement are
used herein as therein defined.

            I am the General Counsel of the Company and have acted as counsel to
the Company and the Guarantor in connection with the Credit Agreement. In
connection with this opinion, I have examined:

            (1) The Credit Agreement.

            (2) The documents furnished by the Company and the Guarantor
pursuant to subsections 3.01(g)(i)-(iv) of the Credit Agreement.

            (3) The Articles of Incorporation of the Company and all amendments
thereto (the "Charter").

            (4) The by-laws of the Company and all amendments thereto (the
"By-laws").

          Form of Opinion of Counsel for the Company and the Guarantor

<PAGE>
                                      -2-

            (5) A certificate of the Secretary of State of Delaware, dated
_______________, 2003, attesting to the continued corporate existence and good
standing of the Company in that State.

            (6) The Amended and Restated Limited Liability Company Agreement of
the Guarantor, dated as of March 30, 1999, and all amendments thereto (the "LLC
Agreement").

            (7) The Certificate of Formation of the Guarantor and all amendments
thereto (the "Certificate of Formation").

            (8) A certificate of the Secretary of State of Delaware dated
_________, 2003, attesting to the continued existence and good standing of the
Guarantor in that State.

            (9) Resolutions of the Board of Directors of the Company adopted on
April 26, 1999 and September 5, 2002.

            (10) Resolutions of the Managing Directors of the Guarantor adopted
on June 4, 1999.

            In addition, I have examined the originals, or copies certified or
otherwise identified to my satisfaction, of such other corporate records of the
Company and the Guarantor, certificates of public officials and of officers of
the Company and the Guarantor, and agreements, instruments and other documents,
as I have deemed necessary as a basis for the opinions expressed below. I have
assumed the due execution and delivery, pursuant to due authorization, of the
Credit Agreement by the Initial Lenders and the Agent.

            The opinions expressed below are limited to the law of the State of
New York, the Delaware corporate law, the Federal law of the United States and,
with respect to paragraphs 1 and 2 and clauses (i), (ii) and (iii)(a) of
paragraph 3 only, the Delaware General Corporation Law and the Delaware Limited
Liability Company Act.

            Based upon the foregoing and upon such investigation as I have
deemed necessary and subject to the qualifications set forth herein, I am of the
following opinion:

            (1) The Company is a corporation validly existing and in good
standing under the laws of the State of Delaware.

            (2) The Guarantor is a limited liability company validly existing
and in good standing under the laws of the state of Delaware.

            (3) The execution, delivery and performance by the Company and the
Guarantor of the Credit Agreement (i) are within the Company's corporate, and
the Guarantor's limited liability company, powers, (ii) have been duly
authorized by all necessary corporate, or limited liability company, action, and
(iii) do not contravene (a) the Charter or the Bylaws of the Company or the LLC
Agreement or Certificate of Formation of the Guarantor or (b) to the best

          Form of Opinion of Counsel for the Company and the Guarantor

<PAGE>
                                      -3-

of my knowledge (1) any United States Federal or New York State law, rule or
regulation applicable to the Company or the Guarantor (including, without
limitation, Regulation X of the Board of Governors of the Federal Reserve
System) or (2) any contractual or legal restriction contained in any material
judgment, decree, mortgage, agreement, indenture or other instrument to which
the Company or the Guarantor is a party. The Credit Agreement has been duly
executed and delivered on behalf of the Company and the Guarantor.

            (4) No authorization, approval or other action by, and no notice to
or filing with, any governmental authority or regulatory body of the State of
New York or the Federal government of the United States is required for the due
execution, delivery and performance by the Company or the Guarantor of the
Credit Agreement.

            (5) The Credit Agreement is a valid and binding obligation of the
Company and the Guarantor enforceable against the Company and the Guarantor in
accordance with its terms.

            (6) To the best of my knowledge and except as disclosed in the
Company's consolidated financial statements, there are no pending or overtly
threatened actions or proceedings against the Company or any of its
Subsidiaries, before any court, governmental agency or arbitrator that purport
to affect the legality, validity, binding effect or enforceability of the Credit
Agreement or that are likely to have a materially adverse effect upon the
financial condition or operations of the Company or any of its Subsidiaries.

The opinions set forth above are subject to the following qualifications:

            (1) My opinion in paragraph 5 above is subject to the effect of any
applicable bankruptcy, insolvency, reorganization, moratorium or similar law
affecting creditors' rights generally.

            (2) My opinion in paragraph 5 above is subject to the effect of
general principles of equity, including, without limitation, concepts of
materiality, reasonableness, good faith and fair dealing (regardless of whether
considered in a proceeding in equity or at law).

            (3) I express no opinion as to the effect (if any) of the law of any
jurisdiction (other than the State of New York) wherein any Lender may be
located or wherein enforcement of the Credit Agreement may be sought that limits
the rates of interest that such Lender may charge or collect.

            (4) I express no opinion as to the effect of Section 548 of the
United States Bankruptcy Code or any similar provision of State law.

            In all respects and for all purposes, this opinion is given solely
for the benefit of the Agent and the Lenders and may not be relied upon by any
other person or entity without my prior written consent.

                                        Very truly yours,

          Form of Opinion of Counsel for the Company and the Guarantor

<PAGE>

                                                                       EXHIBIT D

                           FORM OF DESIGNATION LETTER

                                              ____________, ____

To JPMorgan Chase Bank
  as Agent

Attention: Cherry Arnaez

Ladies and Gentlemen:

            We make reference to the 364-Day Credit Agreement (as amended,
supplemented and otherwise modified and in effect from time to time, the "Credit
Agreement") dated as of April 30, 2003 among The Pepsi Bottling Group, Inc. (the
"Company"), Bottling Group, LLC (the "Guarantor"), JPMorgan Chase Bank, as
administrative agent (the "Agent"), and the banks party thereto (the "Initial
Lenders"). Terms defined in the Credit Agreement are used herein as defined
therein.

            The Company hereby designates [______________] (the "Borrowing
Subsidiary"), a Subsidiary of the Company and a corporation duly incorporated
under the laws of [_______________] as a Borrower in accordance with Section
2.17 of the Credit Agreement until such designation is terminated in accordance
with said Section 2.17.

            The Borrowing Subsidiary hereby accepts the above designation and
hereby expressly and unconditionally accepts the obligations of a Borrower under
the Credit Agreement, adheres to the Credit Agreement and agrees and confirms
that, upon your execution and return to the Company of the enclosed copy of this
letter, such Borrowing Subsidiary shall be a Borrower for purposes of the Credit
Agreement and agrees to be bound by and perform and comply with the terms and
provisions of the Credit Agreement applicable to it as if it had originally
executed the Credit Agreement as a Borrower. The Borrowing Subsidiary hereby
authorizes and empowers the Company to act as its representative and
attorney-in-fact for the purposes of signing documents and giving and receiving
notices (including notices of Borrowing under the Credit Agreement) and other
communications in connection with the Credit Agreement and the transactions
contemplated thereby and for the purposes of modifying or amending any provision
of the Credit Agreement and further agrees that the Agent and each Lender may
conclusively rely on the foregoing authorization.

            The Borrowing Subsidiary represents and warrants that each of the
representations and warranties set forth in Section 4.01(a) (as if the reference
therein to Delaware were a reference to its jurisdiction of organization), (b),
(c) and (d) of the Credit Agreement are true as if each reference therein to the
Company were a reference to the Borrowing Subsidiary

                           Form of Designation Letter

<PAGE>
                                      -2-

and as if each reference therein to the Loan Documents were a reference to this
Designation Letter.

            The Borrowing Subsidiary hereby agrees that this Designation Letter
and the Credit Agreement shall be governed by, and construed in accordance with,
the law of the State of New York. The Borrowing Subsidiary hereby submits to the
nonexclusive jurisdiction of any New York state court or Federal court of the
United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this
Designation Letter, the Credit Agreement or for recognition or enforcement of
any judgment. The Borrowing Subsidiary irrevocably waives, to the fullest extent
permitted by law, any objection which it may now or hereafter have to the laying
of the venue of any such proceeding brought in such a court and any claim that
any such proceeding brought in such a court has been brought in an inconvenient
forum. The Borrowing Subsidiary further agrees that service of process in any
such action or proceeding brought in New York may be made upon it by service
upon the Borrower at the "Address for Notices" specified below its name on the
signature pages to the Credit Agreement.

            Without limiting the foregoing, the Borrowing Subsidiary joins in
the submission, agreements, waivers and consents in Section 8.11 and 8.12 of the
Credit Agreement.

                                        THE PEPSI BOTTLING GROUP, INC.

                                        By: ____________________________________
                                            Name:
                                            Title:

                                        [NAME OF BORROWING SUBSIDIARY]

                                        By: ____________________________________
                                            Name:
                                            Title:

                           Form of Designation Letter

<PAGE>
                                      -3-

ACCEPTED:

JPMORGAN CHASE BANK,
  as Agent

By: ___________________________________
    Name:
    Title:

                           Form of Designation Letter

<PAGE>

                                                                       EXHIBIT E

                           FORM OF SUBSTITUTION LETTER

                                              ____________, ____

To JPMorgan Chase Bank
  as Agent

Attention: Cherry Arnaez

Ladies and Gentlemen:

            We make reference to the 364-Day Credit Agreement (as amended,
supplemented and otherwise modified and in effect from time to time, the "Credit
Agreement") dated as of April 30, 2003 among The Pepsi Bottling Group, Inc. (the
"Company"), Bottling Group, LLC (the "Guarantor"), JPMorgan Chase Bank, as
administrative agent (the "Agent"), and the banks party thereto (the "Initial
Lenders"). Terms defined in the Credit Agreement are used herein as defined
therein.

            The Company hereby elects to terminate its rights as a Borrower
under the Credit Agreement and designates the Guarantor as the exclusive
Borrower thereunder, in accordance with Section 2.17 of the Credit Agreement.

            The Guarantor hereby accepts the above substitution and hereby
expressly and unconditionally accepts the obligations of the Company under the
Credit Agreement, adheres to the Credit Agreement and agrees and confirms that,
as of the date hereof, the Guarantor shall become a Borrower for purposes of the
Credit Agreement and agrees to be bound by and perform and comply with the terms
and provisions of the Credit Agreement applicable to it as if it had originally
executed the Credit Agreement as the Company.

            The Company and the Guarantor hereby represent and warrant to the
Agent and each Lender that, before and after giving effect to this Substitution
Letter, (i) the representations and warranties set forth in Section 4.01 of the
Credit Agreement (except the representations set forth in the last sentence of
subsection (e) thereof and in subsection (f) thereof (other than clause (ii)
thereof)) are true and correct in all material respects on the date hereof and
after giving effect to the substitution contemplated hereby as if made on and as
of the date hereof and (ii) no Default has occurred and is continuing.

            The Company and the Guarantor hereby agree that this Substitution
Letter shall be governed by, and construed in accordance with, the law of the
State of New York. The Company and the Guarantor hereby submit to the
nonexclusive jurisdiction of the United States District Court for the Southern
District of New York and of any New York state court sitting in New

                           Form of Substitution Letter

<PAGE>
                                      -2-

York City for the purposes of all legal proceedings arising out of or relating
to this Substitution Letter or the transactions contemplated hereby.

                                        THE PEPSI BOTTLING GROUP, INC.

                                        By:
                                           Name:
                                           Title:

                                        BOTTLING GROUP, LLC

                                        By:
                                           Name:
                                           Title:

                           Form of Substitution Letter

<PAGE>

                                                                       EXHIBIT F

                           FORM OF TERMINATION LETTER

____________, ____

To JPMorgan Chase Bank,
  as Agent

Attention: Cherry Arnaez

Ladies and Gentlemen:

            We make reference to the 364-Day Credit Agreement (as amended,
supplemented and otherwise modified and in effect from time to time, the "Credit
Agreement") dated as of April 30, 2003 by and among The Pepsi Bottling Group,
Inc. (the "Company"), Bottling Group, LLC (the "Guarantor"), JPMorgan Chase
Bank, as administrative agent, and the banks party thereto. Terms defined in the
Credit Agreement are used herein as defined therein.

            The Company hereby terminates the status as a Borrowing Subsidiary
of [_______________], a corporation incorporated under the laws of
[_______________], in accordance with Section 2.17 of the Credit Agreement,
effective as of the date of receipt of this notice by the Agent. The undersigned
hereby represents and warrants that all principal of and interest on any Advance
of the above-referenced Borrowing Subsidiary and all other amounts payable by
such Borrowing Subsidiary pursuant to the Credit Agreement have been paid in
full on or prior to the date hereof. Notwithstanding the foregoing, this
Termination Letter shall not affect any obligation which by the terms of the
Credit Agreement survives termination thereof

                                        THE PEPSI BOTTLING GROUP, INC.

                                        By: ____________________________________
                                            Name:
                                            Title:

                           Form of Termination Letter<PAGE>

                                                                   EXHIBIT 10.10

                                        Certain portions of this exhibit have
                                        been omitted pursuant to a request for
                                        confidential treatment. The omitted
                                        information, which has been marked
                                        "XXXXXXXX" has been filed separately
                                        with the Securities and Exchange
                                        Commission.

                              BUSINESS CONFIDENTIAL

                           OXYGEN, NITROGEN, AND ARGON
                                SUPPLY AGREEMENT

                                     BETWEEN

                                  PRAXAIR, INC.

                                       AND

                               ROUGE STEEL COMPANY
                                  DEARBORN, MI

<PAGE>

                                TABLE OF CONTENTS
                                                                            Page

PART I - DEFINITIONS...........................................................1
     ARTICLE 1 - DEFINITIONS...................................................1

PART II - OXYGEN SUPPLY........................................................4
     ARTICLE 2 - QUANTITY, INSTALLATION, OPERATION AND MAINTENANCE.............4
     ARTICLE 3 - GASEOUS OXYGEN RECEIVERS .....................................5
     ARTICLE 4 - OXYGEN DELIVERY...............................................6
     ARTICLE 5 - SELLER'S SHUTDOWN - OXYGEN SUPPLY SYSTEM......................6

PART III - NITROGEN SUPPLY.....................................................6
     ARTICLE 6 - QUANTITY, INSTALLATION, OPERATION AND MAINTENANCE.............6
     ARTICLE 7 - NITROGEN DELIVERY.............................................7
     ARTICLE 8 - SELLER'S SHUTDOWN - NITROGEN SUPPLY SYSTEM....................7

PART IV - ARGON SUPPLY.........................................................7
     ARTICLE 9 - QUANTITY, INSTALLATION, OPERATION AND MAINTENANCE.............7
     ARTICLE 10 - ARGON DELIVERY...............................................9

PART V - PRICING AND REPRICING.................................................9
     ARTICLE 11 - PRICING AND REPRICING........................................9

PART VI - GENERAL TERMS AND CONDITIONS........................................13
     ARTICLE 12 - OXYGEN AND NITROGEN METERS..................................13
     ARTICLE 13 - SPECIFICATIONS..............................................14
     ARTICLE 14 - PAYMENT.....................................................15
     ARTICLE 15 - TAXES.......................................................15

<PAGE>

     ARTICLE 16 - CONTINGENCIES...............................................15
     ARTICLE 17 - ASSIGNMENT..................................................16
     ARTICLE 18 - LIABILITY...................................................17
     ARTICLE 19 - DURATION OF AGREEMENT.......................................18
     ARTICLE 20 - PRIOR AGREEMENT.............................................18
     ARTICLE 21 - EARLY TERMINATION OF AGREEMENT..............................18
     ARTICLE 22 - PURCHASES BY BUYER FROM A THIRD PARTY.......................18
     ARTICLE 23 - RESOLUTION OF DISPUTES......................................19
     ARTICLE 24 - EASEMENTS AND RIGHTS OF WAY.................................20
     ARTICLE 25 - BUYER'S AND SELLER'S AUTHORIZED REPRESENTATIVES.............20
     ARTICLE 26 - FAIR LABOR STANDARDS ACT....................................20
     ARTICLE 27 - HEADINGS....................................................20
     ARTICLE 28 - SMOKING AND OPEN FLAMES.....................................20
     ARTICLE 29 - NON-WAIVER..................................................20
     ARTICLE 30 - APPLICABLE LAW..............................................20
     ARTICLE 32 - ENTIRE AGREEMENT............................................21

     EXHIBIT A -- DRAWING
     EXHIBIT B -- EXHIBIT B EQUIPMENT
     EXHIBIT C -- DRAWING
     EXHIBIT D --  EXAMPLES ILLUSTRATING THE INTENT OF THE PARTIES REGARDING
     SUPPLEMENTAL NITROGEN AND SUPPLEMENTAL OXYGEN
     EXHIBIT E -- SAMPLE CALCULATION OF LOAD FACTOR

<PAGE>

         THIS AGREEMENT made and entered into as of December 1, 2002, by and
between Praxair, Inc., a Delaware corporation with an office located at 39 Old
Ridgebury Road, Danbury, CT 06810-5113 (hereinafter referred to as "Seller") and
Rouge Steel Company, a Delaware corporation with an office located at 3001
Miller Road, Dearborn, MI 48121-1699 (hereinafter referred to as "Buyer");

                              W I T N E S S E T H:

         WHEREAS, Buyer requires substantial quantities of oxygen, nitrogen, and
argon for use at its plant at Dearborn, Michigan, and has requested Seller to
supply such quantities of oxygen, nitrogen and argon to such plant; and

         WHEREAS, Seller owns and operates facilities for the production of
oxygen, nitrogen and argon at Ecorse, Michigan from which Seller is willing to
supply oxygen, nitrogen and argon to Buyer;

         NOW THEREFORE, in consideration of the foregoing and the mutual
promises contained herein, Buyer and Seller agree as follows:

                              PART I - DEFINITIONS

ARTICLE  1 - DEFINITIONS

         As used in this Agreement:

         1.1 "Agreement Date" means December 1, 2002.

         1.2 "Argon Distributing System" means the system of trunk and service
pipelines owned and operated by Buyer for the transmission of vaporized Liquid
Argon from the Liquid Argon Storage System to the various argon use points
within Buyer's Plant.

         1.3  This Article intentionally left blank

         1.4 "Buyer's Argon Requirements" means Buyer's total present and future
requirements, in gaseous and liquid form, of argon, other than argon supplied in
cylinders, for use at Buyer's Plant; provided, however, in the event Buyer
should require argon for use at Buyer's Plant in connection with any new
technological process utilized at Buyer's Plant subsequent to the date of this
Agreement which requires investment, either by Buyer or another party, where as
a condition of using such new process Buyer is required to purchase its argon
requirements for use in such process from a supplier other than Seller, and a
similar process is not available from Seller at an equal or lower price and
substantially similar terms and conditions, any argon so required for use at
Buyer's Plant under such conditions shall not be deemed to be included in the
definition of "Buyer's Argon Requirements" for purposes of this Agreement.

         1.5 "Buyer's Nitrogen Requirements" means Buyer's total present and
future requirements, in gaseous and liquid form, of nitrogen, other than that
supplied in cylinders, for use at Buyer's Plant; provided, however, in the event
Buyer should require nitrogen for use at Buyer's Plant in connection with

<PAGE>

any new technological process utilized at Buyer's Plant subsequent to the date
of this Agreement which requires investment, either by Buyer or another party,
where as a condition of using such new process Buyer is required to purchase its
nitrogen requirements for use in such process from a supplier other than Seller,
and a similar process is not available from Seller at an equal or lower price
and substantially similar terms and conditions, any nitrogen so required for use
at Buyer's Plant under such conditions shall not be deemed to be included in the
definition of "Buyer's Nitrogen Requirements" for purposes of this Agreement;
and further provided, that notwithstanding anything contained in this Article
1.5, in no event shall Buyer be relieved of its obligation to pay for a minimum
of XXXXXXXX Cubic Feet of Gaseous Nitrogen each Month at the then current First
Block Gaseous Nitrogen Price even if no nitrogen is taken during any such Month
as provided in Article 11.3.

         1.6 "Buyer's Oxygen Requirements" means Buyer's total present and
future requirements, in gaseous and liquid form, of oxygen, other than that
supplied in cylinders, for use at Buyer's Plant; provided, however, in the event
Buyer should require oxygen for use at Buyer's Plant in connection with any new
technological process utilized at Buyer's Plant subsequent to the date of this
Agreement which requires investment, either by Buyer or another party, where as
a condition of using such new process Buyer is required to purchase its oxygen
requirements for use in such process from a supplier other than Seller, and a
similar process is not available from Seller at an equal or lower price and
substantially similar terms and conditions, any oxygen so required for use at
Buyer's Plant under such conditions shall not be deemed to be included in the
definition of "Buyer's Oxygen Requirements" for purposes of this Agreement; and
further provided, that notwithstanding anything contained in this Article 1.6,
in no event shall Buyer be relieved of its obligation to pay for a minimum of
XXXXXXXX Cubic Feet of Gaseous Oxygen each Month at the then current First Block
Gaseous Oxygen Price even if no oxygen is taken during any such Month as
provided in Article 11.2.

         1.7 "Buyer's Plant" means Buyer's plant at the location referred to in
the first WHEREAS clause above, and any additions thereto.

         1.8 "Contract Year" means a period of one (1) year commencing on the
Agreement Date or on any yearly anniversary of such date.

         1.9 "Cubic Foot" means that quantity of oxygen, nitrogen, or argon that
would occupy a volume of one cubic foot at 70 degrees Fahrenheit temperature and
14.696 pounds per square inch absolute pressure.

         1.10 "Gaseous Nitrogen" means nitrogen delivered (a) at a maximum
instantaneous demand rate not to exceed XXXXXXXX Cubic Feet per minute, or (b)
up to a quantity not to exceed XXXXXXXX Cubic Feet in any Month.

XXXXXXXX - Confidential information has been omitted pursuant to a request for
confidential treatment. The omitted information has been filed separately with
the Securities and Exchange Commission.

                                      -2-
<PAGE>

         1.11 "Gaseous Oxygen" means oxygen delivered (a) at a maximum
instantaneous demand rate not to exceed XXXXXXXX Cubic Feet per minute, or (b)
up to a quantity not to exceed XXXXXXXX Cubic Feet in any Month.

         1.12 "Gaseous Oxygen Receivers" means the storage tanks together with
the oxygen regulators and any associated piping and equipment located at Buyer's
Plant which Buyer has sold to Seller as provided in Article 3.1.

         1.13 "Liquid Argon" means all argon delivered to Buyer hereunder in
liquid form to the Liquid Argon Storage System.

         1.14 "Liquid Argon Delivery Point" means the point at which Liquid
Argon is delivered into the Liquid Argon Storage System.

         1.15 "Liquid Argon Storage System" means the storage tanks,
vaporization equipment, piping, controls, devices and instrumentation owned,
installed, operated and maintained by Seller at Buyer's Plant for the storage
and vaporization of Liquid Argon. The location of the Liquid Argon Storage
System is depicted in Exhibit C attached hereto and made a part hereof.

         1.16 "Meter and Receiver Site" means that plot of ground at Buyer's
Plant as depicted in Exhibit A attached hereto and made a part hereof which
Buyer has furnished to Seller for the term hereof for the purpose of installing,
maintaining and operating the oxygen and nitrogen meters installed by Seller as
provided in Article 12 and the Gaseous Oxygen Receivers sold by Buyer to Seller
as provided in Article 3.1.

         1.17 "Month" means that period of time beginning at twelve o'clock
midnight on the first day of any calendar month and extending to twelve o'clock
midnight on the first day of the following calendar month.

         1.18 "Nitrogen Delivery Point" means the flange where Seller's Nitrogen
Pipeline will be connected to the Nitrogen Distributing System at the existing
nitrogen meter station depicted in Exhibit A.

         1.19 "Nitrogen Distributing System" means the system of trunk and
service pipelines owned and operated by Buyer for the transmission of nitrogen
from the Nitrogen Delivery Point to the various nitrogen use points within
Buyer's Plant.

         1.20 "Nitrogen Supply System" means the facilities owned and operated
by Seller at the location referred to in the second WHEREAS clause above for the
supply, production, compression, storage and vaporization of nitrogen to be
delivered hereunder.

         1.21 "Oxygen Delivery Point" means the flange where Seller's Oxygen
Pipeline will be connected to the Oxygen Distributing System within the Meter
and Receiver Site depicted in Exhibit A.

         1.22 "Oxygen Distributing System" means the system of trunk and service
pipelines owned and operated by Buyer for the transmission of oxygen from the
Oxygen Delivery Point to the various oxygen use points within Buyer's Plant.

XXXXXXXX - Confidential information has been omitted pursuant to a request for
confidential treatment. The omitted information has been filed separately with
the Securities and Exchange Commission.

                                      -3-

<PAGE>

         1.23 "Oxygen Supply System" means the facilities owned and operated by
Seller at the location referred to in the second WHEREAS clause above for the
production, compression, storage and vaporization of oxygen to be delivered
hereunder.

         1.24 "Seller's Nitrogen Pipeline" means the pipeline owned and
maintained by Seller for the delivery of nitrogen from the Nitrogen Supply
System to the Nitrogen Delivery Point.

         1.25 "Seller's Oxygen Pipeline" means the pipeline owned and maintained
by Seller for the delivery of oxygen from the Oxygen Supply System to the Oxygen
Delivery Point.

         1.26 "Supplemental Nitrogen" means all nitrogen delivered hereunder
during any Month that is not Gaseous Nitrogen as determined by adding (i) the
quantity of nitrogen delivered during such Month at an instantaneous demand rate
in excess of XXXXXXXX Cubic Feet per minute, (ii) the quantity of nitrogen
delivered during such Month pursuant to Article 16 and (iii) the quantity of
nitrogen calculated by subtracting the sum of the quantities of (i) and (ii)
above from the quantity of nitrogen, if any, delivered during such Month that is
in excess of XXXXXXXX Cubic Feet; provided, however, in no event will the
difference so obtained be less than zero. Reference Exhibit D attached hereto
and made a part hereof for an example illustrating the intent of the parties
regarding the meaning of the term "Supplemental Nitrogen".

         1.27 "Supplemental Oxygen" means all oxygen delivered hereunder during
any Month that is not Gaseous Oxygen as determined by adding (i) the quantity of
oxygen delivered during such Month at an instantaneous demand rate in excess of
XXXXXXXX Cubic Feet per minute, (ii) the quantity of oxygen delivered during
such Month pursuant to Article 16 and (iii) the quantity of oxygen calculated by
subtracting the sum of the quantities of (i) and (ii) above from the quantity of
oxygen, if any, delivered during such Month that is in excess of XXXXXXXX Cubic
Feet; provided, however, in no event will the difference so obtained be less
than zero. Reference Exhibit D for an example illustrating the intent of the
parties regarding the meaning of the term "Supplemental Oxygen".

         1.28     "Quarter" means a calendar quarter.

                             PART II - OXYGEN SUPPLY

ARTICLE 2 - QUANTITY, INSTALLATION, OPERATION AND MAINTENANCE

         2.1 Seller will sell and deliver into the Oxygen Distributing System
and Buyer will purchase and receive from Seller on the terms and conditions
hereinafter set forth Buyer's Oxygen Requirements. Seller will deliver Gaseous
Oxygen to meet Buyer's Oxygen Requirements up to the maximum instantaneous
demand rate set forth in Article 1.11.

         2.2. This Article intentionally left blank.

         2.3 If, from time to time, Buyer requires to purchase oxygen at an
instantaneous demand rate in excess of the maximum instantaneous demand rate for
Gaseous Oxygen as set forth in Article 1.11, Seller

XXXXXXXX - Confidential information has been omitted pursuant to a request for
confidential treatment. The omitted information has been filed separately with
the Securities and Exchange Commission.

                                      -4-
<PAGE>

will, during the term of this Agreement, sell and deliver such oxygen as
Supplemental Oxygen to the extent that Seller, in its reasonable discretion,
deems that it has such oxygen available for Buyer and delivery may be made
within the flow and pressure limitations of Seller's Oxygen Pipeline and the
metering equipment installed pursuant to Article 12.

         2.4 Seller shall, at its sole expense, own, maintain and operate the
Oxygen Supply System, Seller's Oxygen Pipeline and the metering equipment and
communications system installed pursuant to Article 12 during the term of this
Agreement. All of the foregoing shall be and remain the sole property of Seller
and, within a period of one hundred eighty (180) days following termination of
this Agreement, Seller shall have the option to remove any and all components
thereof that may then be situated at Buyer's Plant or leave same in place and
pass title of any such components left in place to Buyer. In removing any such
components that may be situated at Buyer's Plant as aforesaid, Seller shall not
unreasonably interfere with the business or operations of Buyer and to the
extent Seller does so interfere with the business or operations of Buyer, Seller
shall reimburse Buyer for any damages sustained by Buyer as a result thereof.

         2.5 Buyer shall, during the term of this Agreement, maintain the Oxygen
Distributing System and Seller, at no cost to Buyer, will maintain the
connection between Seller's Oxygen Pipeline and the Oxygen Distributing System.

ARTICLE 3 - GASEOUS OXYGEN RECEIVERS

         3.1 Buyer has sold to Seller and Seller has bought from Buyer all
right, title and interest in and to the equipment specified in Exhibit B
attached hereto and made a part hereof, including without limitation, the
Gaseous Oxygen Receivers as more particularly identified in Exhibit B. The
equipment specified in Exhibit B is sometimes hereinafter collectively referred
to as the "Exhibit B Equipment".

         3.2 This Article left intentionally blank

         3.3 The Exhibit B Equipment has been sold by Buyer to Seller "as is,
where is" free and clear of all liens, security interests and encumbrances of
any kind.

         3.4 During the term of this Agreement Seller shall, at its expense,
inspect, maintain, operate, repair and replace the Exhibit B Equipment;
provided, however, in the event any item of Exhibit B Equipment or any component
thereof specifically identified on Exhibit B as Exhibit B Equipment for which
Buyer will be required to bear the cost of repair or replacement, needs to be
repaired or replaced during the term hereof, and the parties agree that such
need exists, Seller shall, at Buyer's expense, cause such item of Exhibit B
Equipment or component thereof to be repaired or replaced and Buyer shall
reimburse Seller for any costs, including without limitation the cost of
material and labor, incurred by Seller in connection with such repair or
replacement within thirty (30) days following the date of Seller's invoice
therefor.

         3.5 This Article intentionally left blank.

                                       -5-

<PAGE>

         3.6 Effective as of the date this Agreement terminates, Seller shall
resell to Buyer and Buyer shall repurchase from Seller for ten (10) dollars all
of Seller's right, title and interest in and to the Exhibit B Equipment on the
same basis as Seller has purchased same from Buyer as provided in Article 3.3.

ARTICLE 4 - OXYGEN DELIVERY

         4.1 Oxygen will be delivered from the Oxygen Supply System at a
pressure of not less than 275 pounds per square inch gauge or more than 450
pounds per square inch gauge to a regulator which will deliver oxygen into the
Oxygen Distributing System at a pressure of not less 180 pounds per square inch
gauge or more than 220 pounds per square inch gauge. Seller's pressure relief
valves will actuate on Seller's Oxygen Pipeline at 475 pounds per square inch
gauge. Buyer shall be responsible for installing and maintaining appropriate
relief devices on the Oxygen Distributing System.

         4.2 Title to and risk of loss of oxygen delivered through Seller's
Oxygen Pipeline shall pass to Buyer at the Oxygen Delivery Point.

ARTICLE 5 - SELLER'S SHUTDOWN - OXYGEN SUPPLY SYSTEM

         5.1 Seller will have the right from time to time to shut down the
Oxygen Supply System for such period of time as may be necessary for Seller to
make ordinary repairs for maintenance and/or thawing necessary and consistent
with proper operation. During any such period, Seller shall deliver from storage
Buyer's Oxygen Requirements.

                           PART III - NITROGEN SUPPLY

ARTICLE 6 - QUANTITY, INSTALLATION, OPERATION AND MAINTENANCE

         6.1 Seller will sell and deliver into the Nitrogen Distributing System
and Buyer will purchase and receive from Seller on the terms and conditions
hereinafter set forth Buyer's Nitrogen Requirements. Seller will deliver Gaseous
Nitrogen to meet Buyer's Nitrogen Requirements up to the maximum instantaneous
demand rate set forth in Article 1.10.

         6.2 If, from time to time, Buyer requires to purchase nitrogen at an
instantaneous demand rate in excess of the maximum instantaneous demand rate for
Gaseous Nitrogen as set forth in Article 1.10, Seller will, during the term of
this Agreement, sell and deliver such nitrogen as Supplemental Nitrogen to the
extent that Seller, in its reasonable discretion, deems that it has such
nitrogen available for Buyer and delivery may be made within the flow and
pressure limitations of Seller's Nitrogen Pipeline and the metering equipment
installed pursuant to Article 12.

                                      -6-

<PAGE>

         6.3 Seller shall, at its sole expense, own, maintain and operate the
Nitrogen Supply System, Seller's Nitrogen Pipeline and the metering equipment
and communications system installed pursuant to Article 12 during the term of
this Agreement. All of the foregoing shall be and remain the sole property of
Seller and, within a period of one hundred eighty (180) days following
termination of this Agreement, Seller shall have the option to remove any and
all components thereof which may then be situated at Buyer's Plant or leave same
in place and pass title of any such components left in place to Buyer. In
removing any such components that may be situated at Buyer's Plant as aforesaid,
Seller shall not unreasonably interfere with the business or operations of Buyer
and to the extent Seller does so interfere with the business or operations of
Buyer, Seller shall reimburse Buyer for any damages sustained by Buyer as a
result thereof.

         6.4 Buyer shall, during the term of this Agreement, maintain the
Nitrogen Distributing System, and Seller at no cost to Buyer, will maintain the
connection between Seller's Nitrogen Pipeline and the Nitrogen Distributing
System.

ARTICLE 7 - NITROGEN DELIVERY

         7.1 Nitrogen will be delivered into the Nitrogen Distributing System at
a pressure of not less than 150 pounds per square inch gauge or more than 225
pounds per square inch gauge. Pressure relief valves will actuate on Seller's
Nitrogen Pipeline at 275 pounds per square inch gauge and Buyer shall be
responsible for installing appropriate relief devices on the Nitrogen
Distributing System.

         7.2 Title to and risk of loss of nitrogen delivered through Seller's
Nitrogen Pipeline shall pass to Buyer at the Nitrogen Delivery Point.

ARTICLE 8 - SELLER'S SHUTDOWN - NITROGEN SUPPLY SYSTEM

         8.1 Seller will have the right from time to time to shut down the
Nitrogen Supply System for such period of time as may be necessary for Seller to
make ordinary repairs for maintenance and/or thawing necessary and consistent
with proper operation. During any such period, Seller shall deliver from storage
Buyer's Nitrogen Requirements.

                             PART IV - ARGON SUPPLY

ARTICLE 9 - QUANTITY, INSTALLATION, OPERATION AND MAINTENANCE

         9.1 Seller will sell and deliver to Buyer and Buyer will purchase and
receive from Seller, on the terms and conditions hereinafter set forth, Buyer's
Argon Requirements. Buyer will give Seller reasonable advance notice of the
quantities of Liquid Argon needed for Buyer's use. Seller will deliver such
quantities within a reasonable time not to exceed twenty-four (24) hours after
receipt of order. The delivery of Liquid

                                      -7-

<PAGE>

Argon by Seller will constitute Buyer's purchase thereof, and the quantities
delivered will be measured by the method Seller regularly uses for the type of
delivery made. Buyer grants to Seller the right of twenty-four (24) hour access
to the Liquid Argon Storage System for the performance of this Agreement, and if
Buyer fails to grant such access, Buyer will pay Seller any special expenses
incurred. Seller will only make full truckload deliveries of Liquid Argon unless
otherwise agreed to by Buyer and Seller.

         9.2 Seller, at its expense, unless otherwise provided herein, will: (i)
install the Liquid Argon Storage System and make the connections to the Argon
Distributing System as depicted in Exhibit C for the distribution of Liquid
Argon; (ii) maintain the Liquid Argon Storage System; and (iii) remove the
Liquid Argon Storage System within a reasonable time not to exceed one hundred
eighty (180) days following termination of this Agreement. In addition, Seller
may, at its expense, and for reasons other than a substantial change in Buyer's
Argon Requirements, method of supply or Buyer's Plant and with Buyer's approval,
such approval not to be unreasonably withheld, remove the Liquid Argon Storage
System or any part thereof, and replace it with another argon supply system or
another Liquid Argon Storage System or part thereof, as Seller may deem
appropriate for the supply of Buyer's Argon Requirements. The Liquid Argon
Storage System will remain the property of Seller at all times. If Seller
relocates or removes all or part of the Liquid Argon Storage System and installs
a replacement due to a substantial change in Buyer's Argon Requirements, method
of supply or Buyer's Plant, Seller may charge Buyer the cost of such removal and
installation as approved by Buyer prior to said removal and installation, such
approval not to be unreasonably withheld. If the Liquid Argon Storage System is
damaged by Buyer, its agents, employees, contractors or invitees, the cost of
repairs reasonably required by Seller will be borne by Buyer. At the time Liquid
Argon is first delivered hereunder, the Liquid Argon Storage System will include
storage tanks with capacities of 3,000 gallons with atmospheric vaporizers and
11,000 gallons with steam vaporizers.

         9.3 Buyer, at its expense, has provided and will continue to provide:
(i) a site for the Liquid Argon Storage System with access by road which is
reasonably acceptable to Seller; (ii) a foundation for the Liquid Argon Storage
System which is reasonably acceptable to Seller; (iii) fencing to prevent
tampering which is reasonably acceptable to Seller; and (iv) isolation barriers
which are reasonably acceptable to Seller. In addition, Buyer, at its expense,
has obtained and will continue to maintain all necessary permits and licenses
for the Liquid Argon Storage System and has furnished and will continue to
furnish all utilities reasonably required by Seller in connection with the
Liquid Argon Storage System, such as electric power, lighting, telephone, water
and/or steam. The facilities furnished by Buyer for the purpose of delivering
such utilities to the points on the Liquid Argon Storage System site designated
by Seller have been found satisfactory by Seller and Buyer will continue to
furnish such facilities hereunder. Buyer will prevent persons other than
Seller's representatives or Buyer's employees, agents, contractors or invitees
authorized by Seller, from entering the Liquid Argon Storage System site,
delaying delivery, or altering, repairing, adjusting, or otherwise tampering
with the Liquid Argon Storage System.

                                      -8-

<PAGE>

         9.4 Buyer shall, during the term of this Agreement, maintain the Argon
Distributing System, and Seller, at no cost to Buyer, will maintain the
connection between the Liquid Argon Storage System and the Argon Distributing
System depicted in Exhibit C.

ARTICLE 10 - ARGON DELIVERY

         10.1 Liquid Argon will be vaporized by the Liquid Argon Storage System
and transferred into the Argon Distributing System at a pressure of not less
than 150 pounds per square inch gauge or more than 220 pounds per square inch
gauge. Pressure relief valves will actuate on the Liquid Argon Storage System at
265 pounds per square inch gauge and Buyer shall be responsible for installing
appropriate relief devices on the Argon Distributing System.

         10.2 Title to and risk of loss of Liquid Argon shall pass to Buyer at
the Liquid Argon Delivery Point.

                         PART V - PRICING AND REPRICING

ARTICLE 11 - PRICING AND REPRICING

         11.1 As promptly as possible after the end of each Month, Seller will
read the metering equipment installed pursuant to Article 12 to determine the
quantities of oxygen and nitrogen delivered to Buyer during such Month. Based
upon such readings, Seller will invoice Buyer and Buyer will pay Seller in
accordance with the prices set forth below as adjusted under Articles 11.4 and
11.8 plus the amount of any sales, use or other excise taxes now or hereafter
imposed by law on Buyer by reason of such sale or delivery.

<TABLE>
<CAPTION>
BASE GASEOUS OXYGEN PRICES
--------------------------
<S>                                                             <C>
         FIRST BLOCK
         -----------
         First XXXXXXXX Cubic Feet per Month                         $ XXXXXXXX per Month

         SECOND BLOCK
         ------------
         Next XXXXXXXX Cubic Feet per Month                       $ XXXXXXXX per 100 Cubic Feet

<CAPTION>

BASE SUPPLEMENTAL OXYGEN PRICE
------------------------------
<S>                                                             <C>
         Any Quantity                                                $ XXXXXXXX per 100 Cubic Feet
</TABLE>

XXXXXXXX - Confidential information has been omitted pursuant to a request for
confidential treatment. The omitted information has been filed separately with
the Securities and Exchange Commission.

                                      -9-

<PAGE>

<TABLE>
<CAPTION>
BASE GASEOUS NITROGEN PRICE
---------------------------
<S>                                                               <C>
         FIRST BLOCK
         -----------
         First XXXXXXXX Cubic Feet per Month                         $ XXXXXXXX per Month

         SECOND BLOCK
         ------------
         Next XXXXXXXX Cubic Feet per Month                       $ XXXXXXXX per 100 Cubic Feet

<CAPTION>

BASE SUPPLEMENTAL NITROGEN PRICE
--------------------------------
<S>                                                               <C>
         Any Quantity                                             $ XXXXXXXX per 100 Cubic Feet
</TABLE>

         11.2 Buyer will be obligated to pay Seller for a minimum of XXXXXXXX
Cubic Feet of Gaseous Oxygen each Month at the then current First Block Gaseous
Oxygen Price as set forth in Article 11.1, as adjusted under Article 11.4, even
if no oxygen is taken by Buyer during any such Month.

         11.3 Buyer will be obligated to pay Seller for a minimum of XXXXXXXX
Cubic Feet of Gaseous Nitrogen each Month at the then current First Block
Gaseous Nitrogen Price as set forth in Article 11.1, as adjusted under Article
11.4, even if no nitrogen is taken by Buyer during any such Month.

         11.4 The Base Gaseous Nitrogen Prices will be adjusted as of the first
day of each Quarter during the term of this Agreement based upon changes in the
cost of electric power and the Producer Price Index-Industrial Commodities Less
Fuel (BLS Series ID# WPU03T15M05), hereinafter the "PPI", using the following
formula:

                              |-                           -|
                     NPn = BPn|.40(Enew)      (PPInew)      |
                              |   ------ + .40-------  + .20|
                              |   (Ebase)    (PPIbase)      |
                              |-                           -|

where:

NPn               =        New Gaseous Nitrogen Price

BPn               =        Base Gaseous Nitrogen Price

and Ebase, Enew, PPIbase and PPInew shall have the meanings set forth below in
this Article 11.4.

The Base Gaseous Oxygen Prices set forth in Article 11.1 will be adjusted as of
the first day of each Quarter during the term of this Agreement based upon
changes in the cost of electric power, the PPI and the quantities of oxygen
delivered by Seller to Buyer under this Agreement using the following formula:

NPo = BPo x {(.54 x (Enew/Ebase)) + (.20 x (PPInew/PPIbase)) + 0.26} x
(LFbase/LFnew)

XXXXXXXX - Confidential information has been omitted pursuant to a request for
confidential treatment. The omitted information has been filed separately with
the Securities and Exchange Commission.

                                      -10-

<PAGE>

Where:
         NPo =    New Gaseous Oxygen Price

         BPo =    Base Gaseous Oxygen Price

         LFbase = XXXXXXXX

         LFnew = The lesser of LFbase or T
                                        ---
                                         H
Where:

         T =      The aggregate quantity of Gaseous Oxygen and Supplemental
                  Oxygen delivered by Seller to Buyer under this Agreement
                  during the Quarter immediately preceding the Quarter in which
                  an adjustment becomes effective; and

         H =      The average of the highest twelve (12) aggregate quantities
                  of Gaseous Oxygen and Supplemental Oxygen delivered by Seller
                  to Buyer under this Agreement during any hours of the
                  applicable Quarter referenced in the definition of T above,
                  multiplied by the total number of hours in such Quarter.
                  Examples illustrating the intent of the parties with respect
                  to the calculation of LFnew are set forth in Exhibit E
                  attached hereto and made a part hereof.

PPIbase =         The three month average of the PPI as published by the
                  United States Department of Labor, Bureau of Labor Statistics
                  for the Months of January, February and March, 2002.

PPInew  =         The average monthly PPI published by the United States
                  Department of Labor, Bureau of Labor Statistics for the
                  Quarter immediately preceding the Quarter in which an
                  adjustment is made using the most current data available at
                  the end of any such Quarter. If the PPI is revised and
                  published on some other base, the values will be adjusted to
                  the new base in accord with such conversion schedule or factor
                  as may be supplied by the Bureau of Labor Statistics.

Enew =            XXXXXXXX

Ebase =           $ XXXXXXXX /kWh

Buyer will have the right through an independent third party auditor to audit
the data and calculations used by the Seller in performing its obligations under
this Agreement with respect to the calculation of Enew and Ebase pursuant to
this Article 11. The auditor will report to Buyer only the

XXXXXXXX - Confidential information has been omitted pursuant to a request for
confidential treatment. The omitted information has been filed separately with
the Securities and Exchange Commission.

                                      -11-

<PAGE>

auditor's conclusion as to what the auditor considers the correct application
of the terms and conditions of this Agreement, and will not divulge any of the
detailed factors or assumptions behind the auditor's conclusion. Buyer will
provide not less than thirty (30) days prior written notice of its intention to
initiate any such audit. Each audit must be initiated not later than the end of
the sixth month following the Quarter under audit. Payment of auditor's fees
will be shared equally between Buyer and Seller.

         11.5 This Article intentionally left blank.

         11.6 Seller will invoice Buyer and Buyer will pay Seller for Liquid
Argon supplied hereunder in accord with the price set forth below, as adjusted
in accord with Article 11.7, plus the amount of any sales, use or other excise
tax now or hereafter imposed in connection with the supply of Liquid Argon
hereunder.

<TABLE>
<CAPTION>
         BASE LIQUID ARGON PRICE
         -----------------------
<S>                                                <C>
         Any Quantity (up to XXXXXXXX Cubic        $ XXXXXXXX per 100 cubic feet
         Feet per Month)
</TABLE>

         In addition to the price set forth above, Buyer will pay to Seller each
Month during the term of this Agreement beginning with the Month in which the
Agreement Date occurs a Base Liquid Argon Monthly Charge of $ XXXXXXXX plus the
amount of any sales, use or other excise tax related thereto; provided, however,
in the event this Agreement terminates on a date other than the last day of a
Month, such charge shall be prorated for such Month.

         11.7 The Base Liquid Argon Price set forth in Article 11.6 shall be
adjusted on the first day of each Quarter during the term of this Agreement
based upon changes in the cost of electric power and the PPI using the following
formula:
                              |-                           -|
                     NPa = BPa|.40(Enew)      (PPInew)      |
                              |   ------ + .40-------  + .20|
                              |   (Ebase)    (PPIbase)      |
                              |-                           -|

where:
         NPa      =        New Liquid Argon Price

         BPa      =        Base Liquid Argon Price

and Ebase, Enew, PPIbase and PPInew shall have the same meanings as provided in
Article 11.4.

         11.8 The Base Supplemental Oxygen Price and the Base Supplemental
Nitrogen Price set forth in Article 11.1 may be adjusted by Seller at any time
during the term of this Agreement by giving Buyer not less than thirty (30) days
prior written notice of the effective date of the adjustment. In the event Buyer
is able, within sixty (60) days following receipt of Seller's notice of
adjustment, to provide Seller with documentary evidence that it can obtain a
lower price for Supplemental Oxygen or Supplemental Nitrogen and Seller is
unwilling to either meet that lower price or rescind the notice of adjustment
within thirty (30) days

XXXXXXXX - Confidential information has been omitted pursuant to a request for
confidential treatment. The omitted information has been filed separately with
the Securities and Exchange Commission.

                                      -12-

<PAGE>

after Seller receives such documentary evidence, Buyer shall have the right to
purchase Supplemental Oxygen or Supplemental Nitrogen from another supplier. Any
increases under this Article 11.8 will be limited to 5% per Contract Year.

         11.9 If the PPI referred to in Article 11.4 is revised and published on
some base other than 1982=100, the values of PPIbase and PPInew used in the
price formulas in Articles 11.4 and 11.7 will be adjusted to the new base in
accord with such conversion schedule or factor as may be supplied by the
publisher of such index. Should any of the publications or schedules containing
PPIbase, PPInew, Ebase, or Enew cease to exist or generate the necessary data, a
new index will be established by reference to other public sources of similar
information as may be mutually agreed upon by the parties. If no other public
source of such information is available, then the parties will in good faith
establish a new method for determining a similar index within sixty (60) days of
the acknowledged cessation of the public source data.

                     PART VI - GENERAL TERMS AND CONDITIONS

ARTICLE 12 - OXYGEN AND NITROGEN METERS

         12.1 Seller has installed or will install meters on Seller's Oxygen
Pipeline and Seller's Nitrogen Pipeline at the Meter and Receiver Site and at
the existing nitrogen meter station depicted in Exhibit A to measure the
quantities of Gaseous Oxygen, Supplemental Oxygen, Gaseous Nitrogen and
Supplemental Nitrogen delivered hereunder. The meters shall be operated and
maintained by Seller. Buyer grants to Seller the right of access to the Meter
and Receiver Site during the term of this Agreement, and thereafter, for the
removal of same. Buyer, at its expense, will provide a roadway to the Meter and
Receiver Site. Buyer, at its expense, will provide facilities for and will
deliver 110-volt electric power to the metering equipment. Seller has installed
or will install a communications system from the metering equipment to the
Oxygen Supply System and Nitrogen Supply System by a mutually acceptable route
over Buyer's property. Buyer grants to Seller the right of access to the
communications system for the purpose of maintaining said system during the term
of this Agreement, and thereafter, for the removal of same.

         12.2 Seller, at its expense, will test, calibrate and certify the
metering equipment at regular intervals (at least annually) as determined by
Seller, and Buyer may have its representatives present during such tests. Copies
of the calibration certification shall be provided to Buyer. Readings will be
corrected to standard cubic feet measured at 70 degrees Fahrenheit and 14.696
pounds per square inch absolute pressure. At any time requested by Buyer, Seller
will test the metering equipment in the presence of Buyer's representatives, and
if the metering equipment is found on such test to be accurate, Buyer will pay
Seller the cost and expense of such test, but if the metering equipment is found
on such test to be inaccurate, then the cost and expense of such test and of
correcting the inaccuracy in the metering equipment will be borne by Seller. If
on any test any metering equipment is found to be inaccurate, a correcting
invoice will be rendered

                                      -13-

<PAGE>

to cover the actual amount of oxygen or nitrogen delivered to Buyer through such
metering equipment for the thirty (30) day period prior to the date on which
such test was made, or the period from the date such metering equipment was last
tested and considered accurate whichever period is shorter. If on any test of
any metering equipment its inaccuracy is not over two percent (2%), either fast
or slow, such metering equipment will be considered accurate.

ARTICLE 13 - SPECIFICATIONS

         13.1 Oxygen delivered hereunder will be at least 99.5% pure. Nitrogen
delivered hereunder will be at least 99.999% inert with a dewpoint of not over
minus 84 degrees Fahrenheit temperature. Argon delivered hereunder will be at
least 99.998% pure with a dewpoint of not over minus 80 degrees Fahrenheit
temperature. Buyer may refuse delivery of any oxygen, nitrogen or argon which
does not conform to the foregoing specifications by providing Seller with verbal
notice within eight (8) hours and subsequent written confirmation within five
(5) days of delivery thereof and no charge will be made for any oxygen, nitrogen
or argon so refused. Seller will immediately, or as soon as practicable, replace
any such refused oxygen, nitrogen or argon with conforming oxygen, nitrogen or
argon at the same price as that oxygen, nitrogen or argon which was so refused
by Buyer. Since Buyer may obtain devices which have the capability of testing
the purity of oxygen, nitrogen or argon delivered hereunder and may refuse at no
cost oxygen, nitrogen or argon delivered hereunder which does not meet the
foregoing specifications, no claim of any kind with respect to oxygen, nitrogen
or argon delivered hereunder, whether or not based on negligence, warranty, or
any other theory of law will be greater than the purchase price of the quantity
of nonconforming oxygen, nitrogen or argon in respect to which such claim is
made. This represents Buyer's exclusive remedy with respect to claims relating
to the purity of oxygen, nitrogen or argon. Seller will have no liability for
any incidental, consequential, indirect or special damages hereunder. THERE ARE
NO EXPRESS WARRANTIES BY SELLER WITH RESPECT TO OXYGEN, NITROGEN OR ARGON OTHER
THAN THOSE SPECIFIED IN THIS ARTICLE 13. NO WARRANTIES BY SELLER (OTHER THAN
WARRANTY OF TITLE AS PROVIDED IN THE UNIFORM COMMERCIAL CODE) SHALL BE IMPLIED
OR OTHERWISE CREATED UNDER THE UNIFORM COMMERCIAL CODE, INCLUDING BUT NOT
LIMITED TO WARRANTY OF MERCHANTABILITY AND WARRANTY OF FITNESS FOR A PARTICULAR
PURPOSE.

         13.2 At the beginning of each Month during the term hereof Seller shall
provide Buyer with a Certificate of Conformance indicating that oxygen and
nitrogen delivered hereunder during the immediately preceding Month conformed to
the specifications set forth in Article 13.1.

                                      -14-

<PAGE>

ARTICLE 14 - PAYMENT

         14.1 Terms of payment for all products and services provided under this
Agreement will be net thirty (30) days following the date of invoice. If Buyer
fails to make timely payment in accordance with the terms of this Agreement, or
its financial responsibility becomes otherwise impaired, Seller reserves the
right, among other remedies, to:

                  (a) Refuse to supply oxygen, nitrogen or argon except for
receipt of cash with order and/or payment in full of all outstanding charges;
and/or

                  (b) Assess and collect from Buyer a monthly late charge on any
delinquent balance at the interest rate permitted by law which charge shall be
payable by Buyer within fifteen (15) days following the date of invoice
therefor.

         14.2 If Buyer fails to make timely payment in accordance with the terms
of this Agreement and such failure continues for a period of thirty (30) days
following written notice of such failure by Seller, Seller shall have the right
to terminate or suspend this Agreement.

ARTICLE 15 - TAXES

         15.1 Subject to the provisions of Articles 11.1 and 11.6, Seller shall
pay or cause to be paid the taxes lawfully levied by any federal, state or local
governmental authority on Seller, including without limitation any taxes
applicable to any product delivered hereunder prior to its delivery to Buyer,
and Seller shall hold Buyer harmless therefrom. Buyer shall pay all taxes
lawfully levied by any federal, state or local governmental authority on Buyer,
including without limitation any taxes applicable to any product delivered
hereunder at and after delivery thereof to Buyer or for the account of Buyer,
and shall agree to hold Seller harmless therefrom. If Seller is required to
remit or pay any taxes that are lawfully levied on Buyer, Buyer shall reimburse
Seller for such remission or payment within thirty (30) days following the date
of Seller's invoice therefor. If Buyer is required to remit or pay any taxes
that are lawfully levied on Seller, Seller shall reimburse Buyer for such
remission or payment within thirty (30) days following the date of Buyer's
invoice therefor. Notwithstanding the foregoing, Buyer shall have no liability
for any taxes which are derived from Seller's gross or net income or for the
Michigan Single Business Tax.

ARTICLE 16 - CONTINGENCIES

         16.1 Neither party hereto will be liable to the other for default or
delay in the performance of any of its obligations hereunder (except any
obligation to make payments when due) due to an act of God, accident, fire,
flood, storm, riot, war, sabotage, explosion, strike, labor disturbance or other
concerted acts of workers beyond the reasonable control of the party claiming
excuse from performance which has the effect of disrupting the claiming party's
ability to perform hereunder and which also meets the other tests set forth in
this Article 16.1, national defense requirement, governmental law, ordinance,
rule or regulation, whether valid

                                      -15-

<PAGE>

or invalid, extraordinary failure of equipment or apparatus, inability to
obtain electricity (whether or not such electricity is purchased on an
interruptible basis) or other type of energy, raw material, labor, equipment or
transportation, or any similar or different contingency beyond its reasonable
control which would make performance commercially impracticable whether or not
the contingency is of the same class as those enumerated above, it being
expressly agreed that such enumeration shall be nonexclusive, provided however,
neither business downturn nor economic conditions will qualify as a contingency
within the meaning of this Article 16.

         16.2 If, for any period, a contingency covered by Article 16.1 reduces
or fully interrupts the delivery of oxygen or nitrogen hereunder, Buyer and
Seller will have no commitment under Articles 2.1 or 6.1. In that event, Seller
will allocate in a fair and reasonable manner, between Buyer and Seller's own
needs and customers elsewhere, any oxygen or nitrogen which Seller has
reasonably available in storage within the Oxygen Supply System or Nitrogen
Supply System. Seller will so deliver such oxygen or nitrogen to Buyer, and
Seller will give prompt notice to Buyer of the reduction or interruption. Buyer
will accept and pay for any such oxygen or nitrogen so delivered before said
notice is given. Upon receiving said notice, Buyer will either advise Seller to
discontinue said deliveries or request that they be continued. Seller will
continue said deliveries, if so requested, for as long as Seller, in its
discretion, deems that its own needs and contract commitments to others will
permit. Buyer will pay for any such oxygen or nitrogen delivered pursuant to
this Article 16.2 at the price for Supplemental Oxygen or Supplemental Nitrogen,
as the case may be, specified in Article 11.1 as adjusted under Article 11.8
plus any additional costs related to special handling.

         16.3 During any Month in which the quantity of Gaseous Oxygen or
Gaseous Nitrogen purchased by Buyer is less than the minimum purchase obligation
set forth in Articles 11.2 or 11.3, respectively, because of a contingency as
provided in Article 16.1 affecting Seller or Buyer, Buyer's minimum purchase
obligation for such Month shall be reduced pro rata according to the duration of
the contingency during such Month and the term of this Agreement shall be
extended one (1) day for each contingency day or part thereof which has caused
said reduction in Buyer's minimum purchase obligation.

         16.4 In the event a Seller's contingency reduces or eliminates Seller's
capability to produce and/or deliver Liquid Argon, Seller will allocate Liquid
Argon among the requirements of all its regular customers in a fair and
reasonable manner.

         16.5 As utilized in Article 16.1 "extraordinary failure of equipment or
apparatus" shall mean a failure of equipment or apparatus that arises from
causes beyond Buyer's or Seller's control, rather than failure that arises from
Buyer's or Seller's lack of proper operation, maintenance, design, or
engineering.

ARTICLE 17 - ASSIGNMENT

         17.1 This Agreement shall inure to the benefit of and bind the
respective successors and assigns of the parties hereto and except as provided
below, any assignment of this Agreement without the prior

                                      -16-

<PAGE>

written consent of the other party, which consent shall not be unreasonably
withheld, shall be void. Either party may assign its rights under this
Agreement, including its right to receive payments hereunder, to a subsidiary,
affiliate or any financial institution, but in such case the assigning party
shall remain liable to the other party for the assigning party's obligations
hereunder. The nonassigning party shall promptly acknowledge such assignment in
writing after notice of assignment is received from the assigning party.

ARTICLE 18 - LIABILITY

         18.1 Buyer acknowledges that there are hazards associated with the
storage, use and handling of argon, oxygen and nitrogen and Buyer agrees that
its personnel concerned with argon, oxygen and nitrogen are aware of such
hazards. Buyer shall be responsible for complying with all relevant reporting
obligations under all applicable laws, including but not limited to the
Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. Sections
11001-11049 (EPCRA, also commonly known as Title III of the Superfund Amendments
and Reauthorization Act of 1986, SARA Title III) resulting from the presence at
Buyer's Plant of argon, oxygen and nitrogen supplied under this Agreement. Buyer
shall be responsible for warning and protecting its employees, independent
contractors and others exposed to the hazards posed by Buyer's storage, use and
handling of argon, oxygen and nitrogen. Buyer also assumes all responsibility
for the suitability and the results of using oxygen, nitrogen and argon alone or
in combination with other articles or substances and in any manufacturing
process. Buyer will notify Seller in advance of any anticipated construction,
renovation, or change in operations in the area of the Meter and Receiver Site
or the Liquid Argon Storage System so that any hazards associated with same can
be minimized. Neither party will be liable to the other party for any loss or
damage to the other's property which may occur because of the performance of
this Agreement regardless of which party may be negligent. Neither Buyer nor
Seller will be liable for any incidental, consequential, indirect or special
damages or charges under this Agreement. Buyer will receive documents from
Seller, including Seller's Material Safety Data Sheet(s) containing Seller's
safety and health information pertaining to argon, oxygen and nitrogen delivered
hereunder and Buyer will incorporate such information into Buyer's safety
program. Each party hereby agrees to indemnify the other and hold the other
harmless from any actions, lawsuits, demands, claims, losses, expenses, costs,
including but not limited to legal fees, and damages, arising from the injury,
illness or death of their respective employees while engaged in activities
connected with this Agreement, whether or not such injury, illness or death is
claimed to have been caused by, resulted from, or was in any way connected with
the negligence of the party to be indemnified.

         18.2 Buyer will hold Seller harmless from and against liens and claims
against any of Seller's equipment due to its location at Buyer's Plant.

                                      -17-

<PAGE>

ARTICLE 19 - DURATION OF AGREEMENT

         19.1 This Agreement will be in effect from the Agreement Date and will
continue in effect until December 1, 2011 or as may be extended pursuant to
Article 16.3 and thereafter until terminated by either party upon giving not
less than twelve (12) months prior written notice of such termination to the
other party.

ARTICLE 20 - PRIOR AGREEMENT

         20.1 Effective as of the Agreement Date, this Agreement shall supersede
and cancel the existing agreement dated November 16, 1993, as amended, between
the parties hereto relating to the supply of oxygen, argon and nitrogen to
Buyer's Plant.

ARTICLE 21 - EARLY TERMINATION OF AGREEMENT

         21.1 If Buyer permanently shuts down its iron and steelmaking
operations at Buyer's Plant, then Buyer may terminate this Agreement per the
schedule below by providing Seller not less than one hundred eighty (180) days
prior written notice of such termination. A termination fee, as liquidated
damages and not as a penalty, determined in accordance with the following
schedule, shall be payable by Buyer to Seller not less than ninety (90) days
prior to the effective date of such termination:

<TABLE>
<CAPTION>
The Effective Date of Termination                                Termination Fee
---------------------------------                                ---------------
<S>                                                              <C>
Before December 31, 2002                                           $  12,000,000
January 1, 2003 through December 31, 2003                          $   9,000,000
January 1, 2004 through December 31, 2004                          $   6,000,000
January 1, 2005 through December 31, 2005                          $   3,000,000
January 1, 2006 or later                                           $      0
</TABLE>

ARTICLE 22 - PURCHASES BY BUYER FROM A THIRD PARTY

         22.1 In the event that Seller is unable to supply all or any part of
Buyer's requirements for Supplemental Oxygen or Supplemental Nitrogen for any
reason during the term hereof, Buyer shall have the right to purchase such
requirements, or part thereof, from another supplier during the period of such
inability. This right of Buyer shall not entitle Buyer to recover from Seller
any incidental, indirect, consequential or special damages or any part of the
purchase price paid to any such other supplier, including but not limited to the
difference between the price of such other supplier and the prices specified
herein. Upon notice from Seller that the inability to supply on the part of
Seller has concluded, Buyer shall promptly resume its purchases from Seller.

                                      -18-

<PAGE>

         22.2 During the term of this Agreement Buyer shall have the right to
initiate good faith negotiations with Seller for the purpose of determining
whether the prices for Supplemental Oxygen and Supplemental Nitrogen set forth
herein, as adjusted as provided herein, are fair market prices. In making such a
determination, the parties shall take into consideration all of the terms and
conditions contained in this Agreement, including without limitation
instantaneous delivery rates, delivery pressures, backup obligations, minimum
take or pay obligations, requirement obligations, repricing provisions, payment
terms and the duration of this Agreement. Buyer may exercise its right under
this Article 22.2 at any time during the term of this Agreement. In the event
Buyer exercises such right and Buyer and Seller are unable to agree whether the
prices set forth herein for Supplemental Oxygen or Supplemental Nitrogen are
fair market prices, Buyer may request competitive bids from other responsible
suppliers. If as a result of any such request Buyer receives credible written
evidence that Supplemental Oxygen or Supplemental Nitrogen can be supplied to
Buyer's Plant by a responsible third party supplier under terms and conditions
substantially the same as those contained in this Agreement at the time of such
request and at a price that is lower than the price for Supplemental Oxygen or
Supplemental Nitrogen set forth herein, as adjusted as provided herein, Buyer
shall furnish such evidence to Seller and if, within thirty (30) days after
receipt of such evidence, Seller does not agree to meet such lower price, Buyer
may elect, within thirty (30) days thereafter, to purchase all or a portion of
the product or products (Supplemental Oxygen or Supplemental Nitrogen) to which
such lower price applies from such third party supplier by giving Seller not
less than thirty (30) days prior written notice of such election. If Seller
agrees to meet the lower price, such price shall become effective on the first
day of the Month following the Month in which the evidence of such lower price
is received by Seller.

ARTICLE 23 - RESOLUTION OF DISPUTES

         23.1 In the event that a party to this Agreement has reasonable grounds
to believe that the other party hereto has failed to fulfill any obligation
hereunder, or, that its expectation of receiving due performance under this
Agreement may be impaired, such party will promptly notify the other party in
writing of the substance of its belief. The party receiving such notice must
respond in writing within thirty (30) days of receipt of such notice and either
provide evidence of cure of the condition specified or provide an explanation of
why it believes that its performance is in accordance with the terms and
conditions of this Agreement, and also specify three (3) dates, all of which
must be within thirty (30) days from the date of its response, for a meeting to
resolve the dispute and by providing either (a) evidence of cure of the
condition specified, or (b) evidence that said party has diligently commenced to
cure the condition specified and will diligently continue to prosecute such
cure, or (c) an explanation of why it believes that its performance is in
accordance with the terms and conditions of this Agreement. The claiming party
will then select one (1) of the three (3) dates, and a dispute resolution
meeting will be held. In addition, each party shall have the right to require
that the

                                      -19-

<PAGE>

responsible officers from each of the companies who is authorized to execute or
amend this Agreement be in attendance at such dispute resolution meeting. If the
parties cannot, in good faith discussions, resolve their dispute, they will be
free to pursue the remedies allowed under law without prejudice.

ARTICLE 24 - EASEMENTS AND RIGHTS OF WAY

         24.1 Buyer shall provide Seller at no cost during the term hereof with
any necessary rights of way on, over, across or through Buyer's Plant as Seller
may require for the installation, operation and maintenance of Seller's Oxygen
Pipeline and Seller's Nitrogen Pipeline.

ARTICLE 25 - BUYER'S AND SELLER'S AUTHORIZED REPRESENTATIVES

         25.1 Buyer's and Seller's authorized representatives shall have the
right to enter the Meter and Receiver Site at all times. Buyer shall exercise
all reasonable precautions to prevent its unauthorized employees or anyone other
than Seller's representatives or Buyer's employees authorized by Seller from
altering, repairing, adjusting or tampering with any of Seller's equipment
located at Buyer's Plant and to prevent trespassing on or entrance to the Meter
and Receiver Site by any unauthorized person or persons.

ARTICLE 26 - FAIR LABOR STANDARDS ACT

         26.1 Seller represents that all oxygen, nitrogen and argon delivered to
Buyer hereunder will be produced in compliance with the Fair Labor Standards Act
of 1938, as amended.

ARTICLE 27 - HEADINGS

         27.1 Headings and titles are for convenience of reference only, and are
not to be used in the interpretation of any provision herein.

ARTICLE 28 - SMOKING AND OPEN FLAMES

         28.1 Buyer agrees to prohibit smoking or unauthorized open flames
within the Meter and Receiver Site and to prohibit the storage of highly
flammable materials within 100 feet thereof in order to minimize the risk of
fire exposure.

ARTICLE 29 - NON-WAIVER

         29.1 Either party's failure to enforce any rights or remedies it may
have hereunder shall not constitute a waiver of any other subsequent rights or
remedies.

ARTICLE 30 - APPLICABLE LAW

         30.1 This Agreement shall be construed in accordance with the laws of
the State of Michigan.

                                      -20-
<PAGE>

ARTICLE 31 - NOTICES

         31.1 Any notice required to be given by either party to the other under
any provisions of this Agreement shall be in writing and sent by mail to the
other party, as follows:

                  SELLER:         Praxair, Inc.
                                  7000 High Grove Blvd
                                  Burr Ridge, IL  60521
                                  Attn:  Region Vice-President
                                  Fax:  630-320-4506

                  BUYER:          Rouge Steel Company
                                  3001 Miller Road
                                  Dearborn, MI 48121-1699
                                  Attn: Director, Purchasing and Transportation

                  INVOICES:       Rouge Steel Company
                                  3001 Miller Road
                                  Dearborn, MI  48121-1699
                                  Attn:  Accounts Payable

or to such other party or such other address as either party shall from time to
time designate for the purpose.

ARTICLE 32 - ENTIRE AGREEMENT

         32.1 The entire agreement is contained herein. The parties acknowledge
that they have read and understand this Agreement, that they have consulted with
counsel of their choice regarding this Agreement, that there are no other
promises, representations or warranties affecting this Agreement, and that any
other or different terms and conditions in any purchase orders issued or
accepted hereunder shall be deemed null and void. Neither of the parties shall
be bound by any decision, definitions, warranties, or representations with
respect to the subject matter hereof other than as expressly provided herein, or
as duly set forth on or subsequent to the date hereof in writing and signed by
the parties to be bound thereby.

         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed as of the date first above written.

ROUGE STEEL COMPANY                      PRAXAIR, INC.

By:  /s/ Gary P. Latendresse             By: /s/ Paul J. Bilek
    -------------------------------         ------------------------------------

Title: Vice Chairman and CFO             Title: Executive Vice President
       ----------------------------             --------------------------------

Date: 12-03-02                           Date: 12-09-02
      -----------------------------            ---------------------------------

                                      -21-

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