Document:

February __, 2007

       

       

      David Prichard

      1764 Stonebridge Drive S.

      Ann Arbor, Michigan 48108

       

      

      	
                  Re:
 	
                  Transition Agreement
 

      

      Dear Skip:

      This letter sets forth the terms and conditions regarding your transfer of employment from ProQuest Information and Learning Company (“I&L”) to ProQuest Company (“ProQuest”) effective upon ProQuest’s sale of I&L to Cambridge Information Group (the “I&L Sale”) and the additional compensation that ProQuest’s Compensation Committee approved for you on February 6, 2007.  For purposes of this letter, the “Company” refers to ProQuest and its subsidiaries and affiliates.

      1.            Transfer to ProQuest after the I&L Sale.  You will be removed from your current assignment with I&L and from any office or other fiduciary position you currently hold in respect of your employment with I&L upon the I&L Sale.  Immediately thereafter, you will be a regular full time employee of ProQuest.  By signing this letter, you commit to remaining employed with ProQuest during the 60 day period immediately following the I&L Sale (the “Transition Period”) and acknowledge that this transfer of employment does not entitle you to any form of severance benefits under your letter agreement with I&L dated August 7, 2006 (the “Executive Letter”) or otherwise.  You will handle special projects as assigned and directed by
      ProQuest’s Chief Executive Officer during the Transition Period.  You agree to diligently perform all of your duties and responsibilities and to continue to serve the Company in a fully professional and competent manner during the Transition Period.  You also agree not to take more than 5 vacation days during the Transition Period.  If at any time ProQuest determines that you are not in compliance with your obligations to ProQuest, it will provide you written notice 

       

      
      

      

      

      within 5 days of such default and you shall have 5 business days to cure such default.  In no case shall a default be identified in the final 5 days of the 60 day Transition Period.

      2.            Compensation During the Transition Period.  You will be paid a salary at the rate of $44,233 per month, payable in accordance with ProQuest’s normal payroll cycle, during the Transition Period.  You will be not be eligible to accrue any additional amounts under the Company’s employee benefit and compensation plans, arrangements, policies and practices (including but not limited to vacation time) during the Transition Period except as follows:

      

      	
                   
 	
                  (a)
 	
                  your coverage under the broad-based general employee benefit programs you have elected for 2007 will continue at normal contribution rates for yourself and your eligible dependents through the Transition Period subject to plan terms;
 

      

      

      	
                   
 	
                  (b)
 	
                  any 401(k) deferral election will remain in effect through the Transition Period, but you will not be eligible for additional company matching contributions.
 

      

      3.            Eligibility to Receive Enhanced Severance under the Executive Letter after the Transition Period.  You will be treated as having terminated your employment for “Good Reason” following a “Change of Control of the Company,” as each such term is defined under the Executive Letter, immediately after you remain employed with and fulfill your duties to the Company throughout the Transition Period.  The “Enhanced Severance Benefits” payable under Section 5 of the Executive Letter (subject to signing a release substantially in the form attached hereto as Exhibit C) consist of the following:

      

      	
                   
 	
                  (a)
 	
                  a single lump sum payment of $600,000, which represents two times your current base salary (i.e., 2 times $300,000) under Section 5(a)(i) of the Executive Letter, within 5 business days after expiration of the release’s revocation period; and 
 

      

      

      	
                   
 	
                  (b)
 	
                  continued coverage in the Company’s group health insurance plan at normal contribution rates for yourself and your eligible dependents for two years after your employment termination date under the terms and conditions set forth in Section 5(b) of the Executive Letter.
 

      

      ProQuest shall contribute to its existing rabbi trust with Wachovia the cash severance amount of $600,000 described in Section 3(a) above within five business days after the I&L Sale.  You shall then be entitled to payment of $600,000 directly from Wachovia if you remain employed with and fulfill your duties to the Company during the Transition Period.

      You shall then also be entitled to payment from the Company of your accrued but unused vacation pay ($23,654 as of this letter) as described under Section 5(a)(ii) of the Executive Letter, reduced by each vacation day you take during the 60 day Transition Period.

      4.            Eligibility to Receive Additional Compensation after Leaving ProQuest.  In addition to the Enhanced Severance Benefits as described above, you will be entitled to the following additional compensation if you remain employed with and fulfill your duties to the Company during the Transition Period:

       

      - 2 -

       

      
      

      

      

      

      	
                   
 	
                  (a)
 	
                  a single lump sum of $52,603 approved by the Compensation Committee on February 6, 2007, which represents $29,589 in lieu of any 2007 SERP contribution and $23,014 in lieu of a 2007 bonus; and
 

      

      

      	
                   
 	
                  (b)
 	
                  a single lump sum of $1,230,000 in lieu of issuing restricted stock to you under Section 3 of the Executive Letter as per the terms and conditions of your Restricted Stock Termination Agreement with ProQuest dated January 23, 2007.
 

      

      The amounts described in this Section 4 shall be paid to you within 5 business days after the expiration of the Transition Period; provided however, that the Secured Obligations under, and as defined in, the Waiver and Omnibus Amendment Agreement dated as of May 2, 2006 (as amended, supplemented or otherwise modified from time to time), among ProQuest Company, certain of its subsidiaries, the lenders thereunder and LaSalle Bank Midwest National Association, as collateral agent (the “Loan Agreement”), have been repaid in full.  If the Secured Obligations have not been repaid as of such date, you will be paid the amounts described in this Section 4 by the end of the business day immediately following such repayment.

      5.            Treatment of Outstanding Equity Awards.  All of your outstanding stock options and restricted stock shall be fully vested as of the I&L Sale.  Exhibit A lists all of your outstanding stock options and restricted stock as of the date of this letter.  You shall be entitled to exercise these stock options for a period of time after you terminate employment with ProQuest, as noted in Exhibit A.  ProQuest is under no obligation to purchase any shares of ProQuest common stock you acquire under any outstanding equity awards.  Please note that your rights to receive restricted stock under Section 3 of the Executive Letter shall not be considered an outstanding equity award for purposes of this Section 5.

      6.            Treatment of Outstanding Deferred Compensation. If you remain employed with and fulfill your duties to the Company during the Transition Period, you shall be treated as vested in your SERP account balance under the Executive Deferred Compensation Plan and such SERP account balance shall thereafter be distributed in accordance with such plan.   In addition, your deferral account balances under the Executive Deferred Compensation Plan shall be distributed in accordance with such plan no later than 90 days after the I&L Sale.  Your total amount payable under the Executive Deferred Compensation Plan as of December 31, 2006 was $123,815.56. 

      7.            Treatment of 2006 Bonus.  The Compensation Committee has approved a 2006 bonus for you equal to $420,000 under Section 4 of the Executive Letter conditional upon ProQuest’s completion of the I&L Sale by March 31, 2007.  We anticipate that I&L will directly pay approximately $390,537 of this amount to you, with the difference, if any, between the amount payable under this Section 7 and the amount you actually receive from I&L being paid to you by ProQuest.  Your 2006 bonus, irrespective of whether payable by ProQuest or I&L, will be paid not later than March 14, 2007.  If I&L for any reason does not timely pay to you its share of the 2006 bonus, ProQuest will pay the full amount due to you under
      this Section 7 and will be subrogated to your rights against I&L with respect to the 2006 bonus.

      8.            Golden Parachute Tax Gross-Up Payment.  The tax gross-up payment for excise taxes due to “golden parachute” treatment under federal tax laws will be paid on your behalf as 

       

      - 3 -

       

      
      

      

      

      required under Section 8 of the Executive Letter.  You will be receive a statement summarizing the calculation of the tax gross-up payment as soon as reasonably practicable after it is paid to the applicable taxing authorities.

      9.            Post-Employment Obligations.  You acknowledge that you shall be subject to the post-employment obligations set forth in Exhibit B to this letter and the Executive Letter.  This letter supersedes any prior non-competition and non-solicitation agreement you may have previously entered into with ProQuest, I&L and any of their subsidiaries or affiliates.

      10.          ProQuest’s Rights and Obligations under the Executive Letter.  ProQuest shall have all of the rights and obligations of I&L under the Executive Letter, including but not limited to the right to recover certain payments as provided under Section 10 of the Executive Letter.

      11.          Effect on Other Agreements.  This letter does not reduce or restrict your rights under any other agreement between you and any entity within the Company, including without limitation the Executive Letter and the Restricted Stock Termination Agreement, except to the extent specifically provided in this letter.

      12.          Withholding.  All amounts payable to you by the Company under this letter or otherwise shall be reduced by applicable taxes and all other deductions as may be required by law or which have been previously authorized.

      13.          Coordination with Loan Agreement.  The provisions of this letter shall not be interpreted in any matter that would violate the terms of the Loan Agreement.

       

      Please review this letter carefully.  If it correctly states our agreement, please sign and return the enclosed copy to me.

       

      Best regards,

       

       

      Richard Surratt

      President and Chief Executive Officer

      ProQuest Company 

       

      David Prichard

       

       

      Read and accepted and

      Agreed to this ____ day of February, 2007.

       

      - 4 -

       

      
      

      

      

      
      EXHIBIT A

       

      OUTSTANDING EQUITY AWARDS

      FOR DAVID PRICHARD

      (As of February 1, 2007)

       

       

      *  But in no event longer than the maximum period of time allowed for the option to be exempt from the requirements of Section 409A of the Internal Revenue Code.

       

       

      - 5 -

       

      
      

      

      

      
      EXHIBIT B

       

      POST-EMPLOYMENT OBLIGATIONS

       

      Confidentiality

       

      In the course of your employment with the Company, you acknowledge that you received proprietary and confidential information, including trade secrets, which are not generally known outside of the Company, which are the subject of reasonable efforts by the Company to maintain secrecy and from which the Company derives economic benefit and value.  This information includes, but is not limited to, the Company’s specific plans and strategies, advertising and marketing promotions, new products, operations, procurement, acquisitions, unit divestiture, cost savings, new technology, recruiting and staffing, financial reports and documents.  Consequently, you shall not without the prior consent from the Company, directly or indirectly, utilize, furnish, make available or disclose to anyone outside of the Company any confidential information of the Company or any information received in confidence from third
      parties by the Company, as long as such matters remain trade secrets or confidential. In connection with and in addition to such confidential information, you will immediately return to ProQuest Company all related reports, files, memoranda, records, software, credit cards, card keys, passkeys, door and file keys, computer access codes disks, laptops, cell phones, phone cards, credit cards and instructional manuals and other physical or personal property which you received, prepared or helped prepare in connection with your employment with the Company, including any copies or excerpts of any of the above items.   

       

      Non-Competition

       

      For a period of twelve (12) months immediately following your termination of employment with ProQuest Company for any reason, you will not, directly or indirectly, or in association with or on behalf of others:

       

      

      	
                  (a)
 	
                  be employed or otherwise engaged by Thomson Gale, EBSCO Industries, Inc., or Newsbank, Inc. (collectively, “Competitors”), or 
 

      

       

      

      	
                  (b)
 	
                  solicit, call upon, contract with, sell to, or service, or aid, assist, or supervise anyone else in soliciting, calling upon, contracting with, selling to or servicing, any of such Competitors. 
 

      

       

      Non-Solicitation

      For a period of twelve (12) months immediately following your termination of employment with ProQuest Company for any reason, you will not, directly or indirectly, or in association with or on behalf of others:

       

      

      	
                  (a)
 	
                  solicit, recruit, employ or seek to employ or otherwise engage the services of any person who is then employed by the Company or any individual who was employed by the Company within the six month period before the date of such solicitation or hire;  
 

      

       

      - 6 -

       

      
      

      

      

      

      	
                  (b)
 	
                  induce or attempt to influence any employee of the Company to terminate his or her employment or association with the Company.
 

      

       

      For purposes of your confidentiality, non-competition and non-solicitation obligations set forth above, “Company” shall mean ProQuest Company, I&L and their respective subsidiaries and affiliates,

       

      - 7 -Pool Corp Note Purchase Agreement

    EXHIBIT 10.1

      CONFORMED
        COPY

      
 

      
 

      

      
        

        

      

      

       

      POOL
        CORPORATION

       

       

       

       

       

      $100,000,000
        Floating Rate Senior Notes due February 12, 2012

       

      
 

       

      _________

       

       

      NOTE
        PURCHASE AGREEMENT

       

       

      _________

       

       

       

      

       

       

      Dated
        as of February 1, 2007 

       

      

      

      

       

      

       

      
        
          
          

        

        
          
          

          
            

            

          

        

        
          
          

          
          

        

      

      
         

      

      TABLE
        OF CONTENTS

       

      
        	
                Section

              	
                Page

              

      

      
        

          
            	
                    1.

                  	
                    AUTHORIZATION
                      OF NOTES.

                  	
                    1

                  
	 	
                    1.1.

                  	
                    Description
                      of Notes.

                  	
                    1

                  
	 	
                    1.2.

                  	
                    Floating
                      Interest Rate Provisions for the Notes.

                  	
                    1

                  
	 	
                    1.3.

                  	
                    Subsidiary
                      Guaranty.

                  	
                    2

                  
	 	 	 	 
	
                    2.

                  	
                    SALE
                      AND PURCHASE OF NOTES.

                  	
                    2

                  
	 	 	 	 
	
                    3.

                  	
                    CLOSING.

                  	
                    3

                  
	 	 	 	 
	
                    4.

                  	
                    CONDITIONS
                      TO CLOSING.

                  	
                    3

                  
	 	
                    4.1.

                  	
                    Representations
                      and Warranties.

                  	
                    3

                  
	 	
                    4.2.

                  	
                    Performance;
                      No Default.

                  	
                    3

                  
	 	
                    4.3.

                  	
                    Compliance
                      Certificates.

                  	
                    4

                  
	 	
                    4.4.

                  	
                    Opinions
                      of Counsel.

                  	
                    4

                  
	 	
                    4.5.

                  	
                    Purchase
                      Permitted By Applicable Law, etc.

                  	
                    4

                  
	 	
                    4.6.

                  	
                    Sale
                      of Other Notes.

                  	
                    4

                  
	 	
                    4.7.

                  	
                    Payment
                      of Special Counsel Fees.

                  	
                    4

                  
	 	
                    4.8.

                  	
                    Private
                      Placement Numbers.

                  	
                    5

                  
	 	
                    4.9.

                  	
                    Changes
                      in Corporate Structure.

                  	
                    5

                  
	 	
                    4.10.

                  	
                    Funding
                      Instructions.

                  	
                    5

                  
	 	
                    4.11.

                  	
                    Amendment
                      of Credit Agreement.

                  	
                    5

                  
	 	
                    4.12.

                  	
                    Proceedings
                      and Documents.

                  	
                    5

                  
	 	 	 	 
	
                    5.

                  	
                    REPRESENTATIONS
                      AND WARRANTIES OF THE COMPANY.

                  	
                    5

                  
	 	
                    5.1.

                  	
                    Organization;
                      Power and Authority.

                  	
                    5

                  
	 	
                    5.2.

                  	
                    Authorization,
                      etc.

                  	
                    6

                  
	 	
                    5.3.

                  	
                    Disclosure.

                  	
                    6

                  
	 	
                    5.4.

                  	
                    Organization
                      and Ownership of Shares of Subsidiaries; Affiliates.

                  	
                    7

                  
	 	
                    5.5.

                  	
                    Financial
                      Statements; Material Liabilities.

                  	
                    7

                  
	 	
                    5.6.

                  	
                    Compliance
                      with Laws, Other Instruments, etc.

                  	
                    8

                  
	 	
                    5.7.

                  	
                    Governmental
                      Authorizations, etc.

                  	
                    8

                  
	 	
                    5.8.

                  	
                    Litigation;
                      Observance of Statutes and Orders.

                  	
                    8

                  
	 	
                    5.9.

                  	
                    Taxes.

                  	
                    9

                  
	 	
                    5.10.

                  	
                    Title
                      to Property; Leases.

                  	
                    9

                  
	 	
                    5.11.

                  	
                    Licenses,
                      Permits, etc.

                  	
                    9

                  
	 	
                    5.12.

                  	
                    Compliance
                      with ERISA.

                  	
                    10

                  
	 	
                    5.13.

                  	
                    Private
                      Offering by the Company.

                  	
                    11

                  
	 	
                    5.14.

                  	
                    Use
                      of Proceeds; Margin Regulations.

                  	
                    11

                  
	 	
                    5.15.

                  	
                    Existing
                      Indebtedness; Future Liens.

                  	
                    11

                  
	 	
                    5.16.

                  	
                    Foreign
                      Assets Control Regulations, etc.

                  	
                    12

                  
	 	
                    5.17.

                  	
                    Status
                      under Certain Statutes.

                  	
                    12

                  
	 	
                    5.18.

                  	
                    Environmental
                      Matters.

                  	
                    12

                  
	 	 	 	 
	
                    6.

                  	
                    REPRESENTATIONS
                      OF THE PURCHASERS.

                  	
                    13

                  
	 	
                    6.1.

                  	
                    Purchase
                      for Investment.

                  	
                    13

                  
	 	
                    6.2.

                  	
                    Source
                      of Funds.

                  	
                    13

                  
	 	 	 	 
	
                    7.

                  	
                    INFORMATION
                      AS TO COMPANY.

                  	
                    15

                  
	 	
                    7.1.

                  	
                    Financial
                      and Business Information.

                  	
                    15

                  
	 	
                    7.2.

                  	
                    Officer's
                      Certificate.

                  	
                    17

                  
	 	
                    7.3.

                  	
                    Electronic
                      Delivery.

                  	
                    18

                  
	 	
                    7.4.

                  	
                    Visitation.

                  	
                    18

                  
	 	 	 	 
	
                    8.

                  	
                    PREPAYMENT
                      OF THE NOTES.

                  	
                    19

                  
	 	
                    8.1.

                  	
                    Required
                      Prepayments.

                  	
                    19

                  
	 	
                    8.2.

                  	
                    Optional
                      Prepayments.

                  	
                    19

                  
	 	
                    8.3.

                  	
                    Mandatory
                      Offer to Prepay Upon Change of Control.

                  	
                    19

                  
	 	
                    8.4.

                  	
                    Allocation
                      of Partial Prepayments.

                  	
                    21

                  
	 	
                    8.5.

                  	
                    Maturity;
                      Surrender, etc.

                  	
                    21

                  
	 	
                    8.6.

                  	
                    Purchase
                      of Notes.

                  	
                    21

                  
	 	
                    8.7.

                  	
                    LIBOR
                      Breakage Amount.

                  	
                    21

                  
	 	 	 	 
	
                    9.

                  	
                    AFFIRMATIVE
                      COVENANTS.

                  	
                    22

                  
	 	
                    9.1.

                  	
                    Compliance
                      with Law.

                  	
                    22

                  
	 	
                    9.2.

                  	
                    Insurance.

                  	
                    22

                  
	 	
                    9.3.

                  	
                    Maintenance
                      of Properties.

                  	
                    22

                  
	 	
                    9.4.

                  	
                    Payment
                      of Taxes and Claims.

                  	
                    22

                  
	 	
                    9.5.

                  	
                    Corporate
                      Existence, etc.

                  	
                    23

                  
	 	
                    9.6.

                  	
                    Books
                      and Records.

                  	
                    23

                  
	 	
                    9.7.

                  	
                    Subsidiary
                      Guaranty; Release.

                  	
                    23

                  
	 	
                    9.8.

                  	
                    Pari
                      Passu Ranking.

                  	
                    24

                  
	 	 	 	 
	
                    10.

                  	
                    NEGATIVE
                      COVENANTS.

                  	
                    24

                  
	 	
                    10.1.

                  	
                    Funded
                      Indebtedness.

                  	
                    24

                  
	 	
                    10.2.

                  	
                    Fixed
                      Charge Coverage.

                  	
                    24

                  
	 	
                    10.3.

                  	
                    Priority
                      Debt.

                  	
                    24

                  
	 	
                    10.4.

                  	
                    Liens.

                  	
                    24

                  
	 	
                    10.5.

                  	
                    Subsidiary
                      Indebtedness.

                  	
                    26

                  
	 	
                    10.6.

                  	
                    Mergers,
                      Consolidations, etc.

                  	
                    27

                  
	 	
                    10.7.

                  	
                    Sale
                      of Assets.

                  	
                    27

                  
	 	
                    10.8.

                  	
                    Nature
                      of Business.

                  	
                    28

                  
	 	
                    10.9.

                  	
                    Transactions
                      with Affiliates.

                  	
                    29

                  
	 	
                    10.10.

                  	
                    Terrorism
                      Sanctions Regulations.

                  	
                    29

                  
	 	 	 	 
	
                    11.

                  	
                    EVENTS
                      OF DEFAULT.

                  	
                    29

                  
	 	 	 	 
	
                    12.

                  	
                    REMEDIES
                      ON DEFAULT, ETC.

                  	
                    31

                  
	 	
                    12.1.

                  	
                    Acceleration.

                  	
                    31

                  
	 	
                    12.2.

                  	
                    Other
                      Remedies.

                  	
                    32

                  
	 	
                    12.3.

                  	
                    Rescission.

                  	
                    32

                  
	 	
                    12.4.

                  	
                    No
                      Waivers or Election of Remedies, Expenses, etc.

                  	
                    33

                  
	 	 	 	 
	
                    13.

                  	
                    REGISTRATION;
                      EXCHANGE; SUBSTITUTION OF NOTES.

                  	
                    33

                  
	 	
                    13.1.

                  	
                    Registration
                      of Notes.

                  	
                    33

                  
	 	
                    13.2.

                  	
                    Transfer
                      and Exchange of Notes.

                  	
                    33

                  
	 	
                    13.3.

                  	
                    Replacement
                      of Notes.

                  	
                    34

                  
	 	 	 	 
	
                    14.

                  	
                    PAYMENTS
                      ON NOTES.

                  	
                    34

                  
	 	
                    14.1.

                  	
                    Place
                      of Payment.

                  	
                    34

                  
	 	
                    14.2.

                  	
                    Home
                      Office Payment.

                  	
                    34

                  
	 	 	 	 
	
                    15.

                  	
                    EXPENSES,
                      ETC.

                  	
                    35

                  
	 	
                    15.1.

                  	
                    Transaction
                      Expenses.

                  	
                    35

                  
	 	
                    15.2.

                  	
                    Survival.

                  	
                    35

                  
	 	 	 	 
	
                    16.

                  	
                    SURVIVAL
                      OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.

                  	
                    35

                  
	 	 	 	 
	
                    17.

                  	
                    AMENDMENT
                      AND WAIVER.

                  	
                    36

                  
	 	
                    17.1.

                  	
                    Requirements.

                  	
                    36

                  
	 	
                    17.2.

                  	
                    Solicitation
                      of Holders of Notes.

                  	
                    36

                  
	 	
                    17.3.

                  	
                    Binding
                      Effect, etc.

                  	
                    37

                  
	 	
                    17.4.

                  	
                    Notes
                      held by Company, etc.

                  	
                    37

                  
	 	 	 	 
	
                    18.

                  	
                    NOTICES.

                  	
                    37

                  
	 	 	 	 
	
                    19.

                  	
                    REPRODUCTION
                      OF DOCUMENTS.

                  	
                    38

                  
	 	 	 	 
	
                    20.

                  	
                    CONFIDENTIAL
                      INFORMATION.

                  	
                    38

                  
	 	 	 	 
	
                    21.

                  	
                    SUBSTITUTION
                      OF PURCHASER.

                  	
                    39

                  
	 	 	 	 
	
                    22.

                  	
                    MISCELLANEOUS.

                  	
                    39

                  
	 	
                    22.1.

                  	
                    Successors
                      and Assigns.

                  	
                    39

                  
	 	
                    22.2.

                  	
                    Payments
                      Due on Non-Business Days.

                  	
                    39

                  
	 	
                    22.3.

                  	
                    Accounting
                      Terms.

                  	
                    40

                  
	 	
                    22.4.

                  	
                    Severability.

                  	
                    40

                  
	 	
                    22.5.

                  	
                    Construction.

                  	
                    40

                  
	 	
                    22.6.

                  	
                    Counterparts.

                  	
                    40

                  
	 	
                    22.7.

                  	
                    Governing
                      Law.

                  	
                    40

                  
	 	
                    22.8.

                  	
                    Jurisdiction
                      and Process; Waiver of Jury Trial.

                  	
                    40

                  

          

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        A -- Information
        Relating to Purchasers

      SCHEDULE
        B -- Defined
        Terms

      SCHEDULE
        5.4 -- Subsidiaries;
        Ownership of Subsidiary Stock; Affiliates

      SCHEDULE
        5.5 -- Financial
        Statements

      SCHEDULE
        5.14 -- Use
        of
        Proceeds

      SCHEDULE
        5.15 -- Existing
        Indebtedness

      SCHEDULE
        10.4 -- Liens

      SCHEDULE
        10.5 -- Subsidiary
        Indebtedness

      EXHIBIT
        1.1 -- Form
        of
        Senior Note

      EXHIBIT
        1.3 -- Form
        of
        Subsidiary Guaranty

      EXHIBIT
        4.4(a) -- Form
        of
        Opinion of Special Counsel for the Company 

      EXHIBIT
        4.4(b) -- Form
        of
        Opinion of General Counsel of the Company

      EXHIBIT
        4.4(c) -- Form
        of
        Opinion of Special Counsel to the Purchasers

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      POOL
        CORPORATION

      109
        Northpark Boulevard

      Covington,
        LA 70433-5521

      985-892-5521

      Fax:
        985-892-2438

      

      

      $100,000,000
        Floating Rate Senior Notes due February 12, 2012

      

      

      Dated
        as
        of February 1, 2007

      

      TO
        EACH
        OF THE PURCHASERS LISTED IN

      THE
        ATTACHED SCHEDULE A:

       

      Ladies
        and Gentlemen:

       

      POOL
        CORPORATION, a Delaware corporation (the “Company”), agrees with each of you as
        follows:

       

       

      1.  AUTHORIZATION
        OF NOTES.

       

      1.1.  Description
        of Notes.

       

      The
        Company has authorized the issue and sale of $100,000,000 aggregate principal
        amount of its Floating Rate Senior Notes due February 12, 2012 (the
“Notes”, such term to include any such Notes issued in substitution therefor
        pursuant to Section 13 of this Agreement). The Notes will be substantially
        in
        the form set out in Exhibit 1.1, with such changes therefrom, if any, as
        may be approved by you, the Other Purchasers and the Company. Certain
        capitalized terms used in this Agreement are defined in Schedule B; references
        to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a Schedule
        or an Exhibit attached to this Agreement. 

       

      1.2.  Floating
        Interest Rate Provisions for the Notes.

       

      (a)  Adjusted
        LIBOR Rate.
        “Adjusted
        LIBOR Rate”
        means,
        for each Interest Period, the rate per annum equal to LIBOR for such Interest
        Period plus 0.60%. For purposes of determining Adjusted LIBOR Rate, the
        following terms have the following meanings:

       

      “LIBOR”
        means,
        for any Interest Period, the rate per annum (rounded upwards, if necessary,
        to
        the next higher one hundred-thousandth of a percentage point) for deposits
        in
        U.S. Dollars for a 3-month period that appears on the Bloomberg Financial
        Markets Service Page BBAM-1 (or if such page is not available, the Reuters
        Screen LIBO Page) as of 11:00 a.m. (London, England time) on the date two
        Business Days before the commencement of such Interest Period (or three Business
        Days before the commencement of the first Interest Period).

       

      “Reuters
        Screen LIBO Page”
        means
        the display designated as the “LIBO” page on the Reuters Monitory Money Rates
        Service (or such other page as may replace the LIBO page on that service)
        or
        such other service as may be nominated by the British Bankers’ Association as
        the information vendor for the purpose of displaying British Bankers’
Association Interest Settlement Rates for U.S. Dollar deposits.

       

      (b)  Determination
        of the Adjusted LIBOR Rate.
        The
        Adjusted LIBOR Rate shall be determined by the Company, and notice thereof
        shall
        be given to the holders of the Notes, within two Business Days after the
        beginning of each Interest Period, together with (i) a copy of the relevant
        screen used for the determination of LIBOR, (ii) a calculation of the Adjusted
        LIBOR Rate for such Interest Period, (iii) the number of days in such
        Interest Period, (iv) the date on which interest for such Interest Period
        will
        be paid and (v) the amount of interest to be paid to each holder of Notes
        on
        such date. If the holders of a majority in principal amount of the Notes
        outstanding do not concur with such determination by the Company, as evidenced
        by a single written notice delivered to the Company within 10 Business Days
        after receipt by such holders of the notice delivered by the Company pursuant
        to
        the immediately preceding sentence, the determination of the Adjusted LIBOR
        Rate
        shall be made by such holders of the Notes, and any such determination made
        in
        accordance with the provisions of this Agreement shall be conclusive and
        binding
        absent manifest error.

       

      (c)  Interest
        Period.
        “Interest
        Period”
        means
        for the Notes and for any period for which interest is to be calculated or
        paid,
        the period commencing on an interest payment date for such Notes, or on the
        date
        of Closing in the case of the first such period, and continuing up to, but
        not
        including, the next interest payment date. The interest payment dates for
        the
        Notes are February 12, May 12, August 12 and November 12.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      1.3.  Subsidiary
        Guaranty.

       

      The
        payment by the Company of all amounts due with respect to the Notes and the
        performance by the Company of its obligations under this Agreement will be
        guaranteed by each Domestic Subsidiary that is or hereafter becomes a borrower
        or guarantor under the Credit Agreement (individually, a “Subsidiary Guarantor”
and collectively, the “Subsidiary Guarantors”), pursuant to the Subsidiary
        Guaranty in substantially the form of the attached Exhibit 1.3, as it hereafter
        may be amended or supplemented from time to time (the “Subsidiary Guaranty”).

       

       

      2.  SALE
        AND PURCHASE OF NOTES.

       

      Subject
        to the terms and conditions of this Agreement, the Company will issue and
        sell
        to you and each of the other purchasers named in Schedule A (the “Other
        Purchasers”), and you and each of the Other Purchasers will purchase from the
        Company, at the Closing provided for in Section 3, Notes in the principal
        amount specified opposite your respective names in Schedule A at the purchase
        price of 100% of the principal amount thereof. Your obligation hereunder
        and the
        obligations of the Other Purchasers are several and not joint obligations
        and
        you shall have no obligation and no liability to any Person for the performance
        or non-performance by any Other Purchaser hereunder.

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      3.  CLOSING.

       

      The
        sale
        and purchase of the Notes to be purchased by you and the Other Purchasers
        shall
        occur at the offices of Foley & Lardner LLP, 321 North Clark Street,
        Suite 2800, Chicago, Illinois 60610-4764, at 9:00 a.m., Chicago time, at a
        closing (the “Closing”) on February 12, 2007 or on such other Business Day
        thereafter on or prior to February 28, 2007 as may be agreed upon by the
        Company and you and the Other Purchasers. At the Closing, the Company will
        deliver to you the Notes to be purchased by you in the form of a single Note
        (or
        such greater number of Notes in denominations of at least $100,000 as you
        may
        request) dated the date of such Closing and registered in your name (or in
        the
        name of your nominee), against delivery by you to the Company or its order
        of
        immediately available funds in the amount of the purchase price therefor
        by wire
        transfer of immediately available funds for the account of the Company to
        account number 882-357-791, for the benefit of SCP Distributors LLC, at Capital
        One Bank, NA, 313 Carondelet Street, 6th floor, New Orleans, LA 70130, ABA
        number 065000090. If at the Closing the Company shall fail to tender such
        Notes
        to you as provided above in this Section 3, or any of the conditions
        specified in Section 4 shall not have been fulfilled to your satisfaction,
        you
        shall, at your election, be relieved of all further obligations under this
        Agreement, without thereby waiving any rights you may have by reason of such
        failure or such nonfulfillment.

       

       

      4.  CONDITIONS
        TO CLOSING.

       

      Your
        obligation to purchase and pay for the Notes to be sold to you at the Closing
        is
        subject to the fulfillment to your satisfaction, prior to or at the Closing,
        of
        the following conditions:

       

      4.1.  Representations
        and Warranties.

       

      The
        representations and warranties of the Company in this Agreement shall be
        correct
        when made and at the time of the Closing.

       

      4.2.  Performance;
        No Default.

       

      The
        Company shall have performed and complied with all agreements and conditions
        contained in this Agreement required to be performed or complied with by
        it
        prior to or at the Closing and after giving effect to the issue and sale
        of the
        Notes (and the application of the proceeds thereof as contemplated by Section
        5.14) no Default or Event of Default shall have occurred and be continuing.
        Neither the Company nor any Subsidiary shall have entered into any transaction
        since the date of the Memorandum that would have been prohibited by
        Section 10 had such Section applied since such date.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      4.3.  Compliance
        Certificates.

       

      (a)  Officer’s
        Certificate.
        The
        Company shall have delivered to you an Officer’s Certificate, dated the date of
        Closing, certifying that the conditions specified in Sections 4.1, 4.2 and
        4.9
        have been fulfilled.

       

      (b)  Secretary’s
        Certificate.
        The
        Company shall have delivered to you certificates of its and each Subsidiary
        Guarantor’s Secretary or an Assistant Secretary, dated the date of Closing,
        certifying as to the resolutions attached thereto and other corporate
        proceedings relating to the authorization, execution and delivery of the
        Notes
        and this Agreement.

       

      4.4.  Opinions
        of Counsel.

       

      You
        shall
        have received opinions in form and substance satisfactory to you, dated the
        date
        of the Closing (a) from Jones, Walker, Waechter, Poitevent, Carrere &
Denegre L.L.P., special counsel for the Company covering the matters set
        forth
        in Exhibit 4.4(a) and covering such other matters incident to such transactions
        as you may reasonably request, (b) from Jennifer M. Neil, Corporate Secretary
        and General Counsel of the Company, covering the matters set forth in Exhibit
        4.4(b) and covering such other matters incident to such transactions as you
        may
        reasonably request, and (c) from Foley & Lardner LLP, your special counsel
        in connection with such transactions, covering the matters set forth in
        Exhibit 4.4(c) and covering such other matters incident to such
        transactions as you may reasonably request.

       

      4.5.  Purchase
        Permitted By Applicable Law, etc.

       

      On
        the
        date of the Closing your purchase of Notes shall (i) be permitted by the
        laws and regulations of each jurisdiction to which you are subject, without
        recourse to provisions (such as Section 1405(a)(8) of the New York Insurance
        Law) permitting limited investments by insurance companies without restriction
        as to the character of the particular investment, (ii) not violate any
        applicable law or regulation (including, without limitation, Regulation U,
        T or
        X of the Board of Governors of the Federal Reserve System) and (iii) not
        subject you to any tax, penalty or liability under or pursuant to any applicable
        law or regulation, which law or regulation was not in effect on the date
        hereof.
        If requested by you, you shall have received an Officer’s Certificate certifying
        as to such matters of fact as you may reasonably specify to enable you to
        determine whether such purchase is so permitted.

       

      4.6.  Sale
        of Other Notes.

       

      Contemporaneously
        with the Closing, the Company shall sell to the Other Purchasers and the
        Other
        Purchasers shall purchase the Notes to be purchased by them as specified
        in
        Schedule A.

       

      4.7.  Payment
        of Special Counsel Fees.

       

      Without
        limiting the provisions of Section 15.1, the Company shall have paid on or
        before the Closing the fees, charges and disbursements of your special counsel
        referred to in Section 4.4 to the extent reflected in a statement of such
        counsel rendered to the Company at least one Business Day prior to the
        Closing.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      4.8.  Private
        Placement Numbers.

       

      A
        Private
        Placement Number issued by Standard & Poor’s CUSIP Service Bureau (in
        cooperation with the Securities Valuation Office of the National Association
        of
        Insurance Commissioners) shall have been obtained by Foley & Lardner LLP for
        the Notes.

       

      4.9.  Changes
        in Corporate Structure.

       

      The
        Company shall not have changed its jurisdiction of incorporation or been
        a party
        to any merger or consolidation or succeeded to all or any substantial part
        of
        the liabilities of any other entity, at any time following the date of the
        most
        recent financial statements referred to in Schedule 5.5. 

       

      4.10.  Funding
        Instructions.

       

      At
        least
        three Business Days prior to the date of the Closing, you shall have received
        written instructions signed by a Responsible Officer on letterhead of the
        Company confirming the information specified in Section 3 including (i) the
        name
        and address of the transferee bank, (ii) such transferee bank’s ABA number and
        (iii) the account name and number into which the purchase price for the Notes
        is
        to be deposited.

       

      4.11.  Amendment
        of Credit Agreement.

       

      The
        Credit Agreement shall have been amended to permit the issuance and sale
        of the
        Notes to you and the Other Purchasers and you shall have received a copy
        of a
        fully executed counterpart of such amendment.

       

      4.12.  Proceedings
        and Documents.

       

      All
        corporate and other proceedings in connection with the transactions contemplated
        by this Agreement and all documents and instruments incident to such
        transactions shall be satisfactory to you and your special counsel, and you
        and
        your special counsel shall have received all such counterpart originals or
        certified or other copies of such documents as you or they may reasonably
        request.

       

       

      5.  REPRESENTATIONS
        AND WARRANTIES OF THE COMPANY.

       

      The
        Company represents and warrants to you that:

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      5.1.  Organization;
        Power and Authority.

       

      The
        Company is a corporation duly organized and validly existing and in good
        standing under the laws of its jurisdiction of incorporation, and is duly
        qualified as a foreign corporation and is in good standing in each jurisdiction
        in which such qualification is required by law, other than those jurisdictions
        as to which the failure to be so qualified or in good standing could not,
        individually or in the aggregate, reasonably be expected to have a Material
        Adverse Effect. The Company has the corporate power and authority to own
        or hold
        under lease the properties it purports to own or hold under lease, to transact
        the business it transacts and proposes to transact, to execute and deliver
        this
        Agreement and the Notes and to perform the provisions hereof and
        thereof.

       

      5.2.  Authorization,
        etc.

       

      This
        Agreement and the Notes have been duly authorized by all necessary corporate
        action on the part of the Company, and this Agreement constitutes, and upon
        execution and delivery thereof each Note will constitute, a legal, valid
        and
        binding obligation of the Company enforceable against the Company in accordance
        with its terms, except as such enforceability may be limited by (i) applicable
        bankruptcy, insolvency, reorganization, moratorium or other similar laws
        affecting the enforcement of creditors’ rights generally and (ii) general
        principles of equity (regardless of whether such enforceability is considered
        in
        a proceeding in equity or at law).

       

      The
        Subsidiary Guaranty has been duly authorized by all necessary corporate action
        on the part of each Subsidiary Guarantor and upon execution and delivery
        thereof
        will constitute the legal, valid and binding obligation of such Subsidiary
        Guarantor, enforceable against such Subsidiary Guarantor in accordance with
        its
        terms, except as such enforceability may be limited by (i) applicable
        bankruptcy, insolvency, reorganization, fraudulent conveyance, fraudulent
        transfer, moratorium or other similar laws affecting the enforcement of
        creditors’ rights generally and (ii) general principles of equity (regardless of
        whether such enforceability is considered in a proceeding in equity or at
        law).

       

      5.3.  Disclosure.

       

      The
        Company, through its agent, J.P. Morgan Securities Inc., has delivered to
        you
        and each Other Purchaser a copy of a Private Placement Memorandum, dated
        January
        2007 (the “Memorandum”), relating to the transactions contemplated hereby. The
        Memorandum fairly describes, in all material respects, the general nature
        of the
        business and principal properties of the Company and its Subsidiaries. This
        Agreement, the Memorandum and the documents, certificates or other writings
        delivered to you and the Other Purchasers by or on behalf of the Company
        in
        connection with the transactions contemplated hereby and the financial
        statements listed in Schedule 5.5, (this Agreement, the Memorandum and such
        documents, certificates or other writings and such financial statements
        delivered to you and the Other Purchasers prior to January 25, 2007 being
        referred to, collectively, as the “Disclosure Documents”), taken as a whole, do
        not contain any untrue statement of a material fact or omit to state any
        material fact necessary to make the statements therein not misleading in
        light
        of the circumstances under which they were made. Except as disclosed in the
        Disclosure Documents, since December 31, 2005, there has been no change in
        the financial condition, operations, business, properties or prospects of
        the
        Company or any Subsidiary except changes that individually or in the aggregate
        could not reasonably be expected to have a Material Adverse Effect. There
        is no
        fact known to the Company that could reasonably be expected to have a Material
        Adverse Effect that has not been set forth herein or in the Disclosure
        Documents.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      5.4.  Organization
        and Ownership of Shares of Subsidiaries; Affiliates.

       

      (a)  Schedule
        5.4 is (except as noted therein) a complete and correct list of (i) the
        Company’s Subsidiaries, showing, as to each Subsidiary, the correct name
        thereof, the jurisdiction of its organization, the percentage of shares of
        each
        class of its capital stock or similar equity interests outstanding owned
        by the
        Company and each other Subsidiary, whether such Subsidiary is a Domestic
        Subsidiary and whether such Subsidiary is a Subsidiary Guarantor, (ii) the
        Company’s Affiliates, other than Subsidiaries, and (iii) the Company’s
        directors and senior officers. 

       

      (b)  All
        of
        the outstanding shares of capital stock or similar equity interests of each
        Subsidiary shown in Schedule 5.4 as being owned by the Company and its
        Subsidiaries have been validly issued, are fully paid and nonassessable and
        are
        owned by the Company or another Subsidiary free and clear of any Lien (except
        as
        otherwise disclosed in Schedule 5.4).

       

      (c)  Each
        Subsidiary identified in Schedule 5.4 is a corporation or other legal entity
        duly organized, validly existing and in good standing under the laws of its
        jurisdiction of organization, and is duly qualified as a foreign corporation
        or
        other legal entity and is in good standing in each jurisdiction in which
        such
        qualification is required by law, other than those jurisdictions as to which
        the
        failure to be so qualified or in good standing could not, individually or
        in the
        aggregate, reasonably be expected to have a Material Adverse Effect. Each
        such
        Subsidiary has the corporate or other power and authority to own or hold
        under
        lease the properties it purports to own or hold under lease and to transact
        the
        business it transacts and proposes to transact.

       

      (d)  No
        Subsidiary is a party to, or otherwise subject to any legal, regulatory,
        contractual or other restriction (other than this Agreement, the agreements
        listed on Schedule 5.4 and customary limitations imposed by corporate law
        or
        similar statutes) restricting the ability of such Subsidiary to pay dividends
        out of profits or make any other similar distributions of profits to the
        Company
        or any of its Subsidiaries that owns outstanding shares of capital stock
        or
        similar equity interests of such Subsidiary.

       

      5.5.  Financial
        Statements; Material Liabilities.

       

      The
        Company has delivered to you and each Other Purchaser copies of the financial
        statements of the Company and its Subsidiaries listed on Schedule 5.5. All
        of
        said financial statements (including in each case the related schedules and
        notes) fairly present in all material respects the consolidated financial
        position of the Company and its Subsidiaries as of the respective dates
        specified in such Schedule and the consolidated results of their operations
        and
        cash flows for the respective periods so specified and have been prepared
        in
        accordance with GAAP consistently applied throughout the periods involved
        except
        as set forth in the notes thereto (subject, in the case of any interim financial
        statements, to normal year-end adjustments). The Company and its Subsidiaries
        do
        not have any Material liabilities that are not disclosed on such financial
        statements or otherwise disclosed in the Disclosure Documents.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      5.6.  Compliance
        with Laws, Other Instruments, etc.

       

      The
        execution, delivery and performance by the Company of this Agreement and
        the
        Notes will not (i) contravene, result in any breach of, or constitute a default
        under, or result in the creation of any Lien in respect of any property of
        the
        Company or any Subsidiary under, any indenture, mortgage, deed of trust,
        loan,
        purchase or credit agreement, lease, corporate charter or by-laws, or any
        other
        agreement or instrument to which the Company or any Subsidiary is bound or
        by
        which the Company or any Subsidiary or any of their respective properties
        may be
        bound or affected, (ii) conflict with or result in a breach of any of the
        terms, conditions or provisions of any order, judgment, decree, or ruling
        of any
        court, arbitrator or Governmental Authority applicable to the Company or
        any
        Subsidiary or (iii) violate any provision of any statute or other rule or
        regulation of any Governmental Authority applicable to the Company or any
        Subsidiary.

       

      The
        execution, delivery and performance by each Subsidiary Guarantor of the
        Subsidiary Guaranty will not (i) contravene, result in any breach of, or
        constitute a default under, or result in the creation of any Lien in respect
        of
        any property of such Subsidiary Guarantor under, any indenture, mortgage,
        deed
        of trust, loan, purchase or credit agreement, lease, corporate charter or
        by-laws, or any other agreement or instrument to which such Subsidiary Guarantor
        is bound or by which such Subsidiary Guarantor or any of its properties may
        be
        bound or affected, (ii) conflict with or result in a breach of any of the
        terms,
        conditions or provisions of any order, judgment, decree, or ruling of any
        court,
        arbitrator or Governmental Authority applicable to such Subsidiary Guarantor
        or
        (iii) violate any provision of any statute or other rule or regulation of
        any
        Governmental Authority applicable to such Subsidiary Guarantor.

       

      5.7.  Governmental
        Authorizations, etc.

       

      No
        consent, approval or authorization of, or registration, filing or declaration
        with, any Governmental Authority is required in connection with the execution,
        delivery or performance by the Company of this Agreement or the Notes or
        the
        execution, delivery or performance by each Subsidiary Guarantor of the
        Subsidiary Guaranty.

       

      5.8.  Litigation;
        Observance of Statutes and Orders.

       

      (a)  There
        are
        no actions, suits, investigations or proceedings pending or, to the knowledge
        of
        the Company, threatened against or affecting the Company or any Subsidiary
        or
        any property of the Company or any Subsidiary in any court or before any
        arbitrator of any kind or before or by any Governmental Authority that,
        individually or in the aggregate, could reasonably be expected to have a
        Material Adverse Effect.

       

      (b)  Neither
        the Company nor any Subsidiary is in default under any term of any agreement
        or
        instrument to which it is a party or by which it is bound, or any order,
        judgment, decree or ruling of any court, arbitrator or Governmental Authority
        or
        is in violation of any applicable law, ordinance, rule or regulation (including
        Environmental Laws and the USA Patriot Act) of any Governmental Authority,
        which
        default or violation, individually or in the aggregate, could reasonably
        be
        expected to have a Material Adverse Effect.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      5.9.  Taxes.

       

      The
        Company and its Subsidiaries have filed, or extended the time for filing,
        all
        tax returns that are required to have been filed in any jurisdiction, and
        have
        paid all taxes shown to be due and payable on such returns and all other
        taxes
        and assessments levied upon them or their properties, assets, income or
        franchises, to the extent such taxes and assessments have become due and
        payable
        and before they have become delinquent, except for any taxes and assessments
        (i)
        the amount of which is not, individually or in the aggregate, Material or
        (ii)
        the amount, applicability or validity of which is currently being contested
        in
        good faith by appropriate proceedings and with respect to which the Company
        or a
        Subsidiary, as the case may be, has established adequate reserves in accordance
        with GAAP. The Company knows of no basis for any other tax or assessment
        that
        could reasonably be expected to have a Material Adverse Effect. The charges,
        accruals and reserves on the books of the Company and its Subsidiaries in
        respect of Federal, state or other taxes for all fiscal periods are adequate.
        The Federal income tax liabilities of the Company and its Subsidiaries have
        been
        finally determined (whether by reason of completed audits or the statute
        of
        limitations having run) for all fiscal years up to and including the fiscal
        year
        ended December 31, 2002 (except for certain items that are the subject of a
        limited extension of the statute of limitations for which the Company has
        established adequate reserves in accordance with GAAP and that, individually
        or
        in the aggregate, could not reasonably be expected to have a Material Adverse
        Effect.

       

      5.10.  Title
        to Property; Leases. 

       

      The
        Company and its Subsidiaries have good and sufficient title to their respective
        properties that individually or in the aggregate are Material, including
        all
        such properties reflected in the most recent audited balance sheet referred
        to
        in Section 5.5 or purported to have been acquired by the Company or any
        Subsidiary after said date (except as sold or otherwise disposed of in the
        ordinary course of business), in each case free and clear of Liens prohibited
        by
        this Agreement. All leases that individually or in the aggregate are Material
        are valid and subsisting and are in full force and effect in all material
        respects.

       

      5.11.  Licenses,
        Permits, etc.

       

      (a)  The
        Company and its Subsidiaries own or possess all licenses, permits, franchises,
        authorizations, patents, copyrights, proprietary software, service marks,
        trademarks and trade names, or rights thereto, that individually or in the
        aggregate are Material, without known conflict with the rights of
        others.

       

      (b)  To
        the
        best knowledge of the Company, no product of the Company or any of its
        Subsidiaries infringes any license, permit, franchise, authorization, patent,
        copyright, proprietary software, service mark, trademark, trade name or other
        right owned by any other Person, except for instances of actual or alleged
        infringement that, individually or in the aggregate, could not reasonably
        be
        expected to have a Material Adverse Effect.

       

      (c)  To
        the
        best knowledge of the Company, there is no Material violation by any Person
        of
        any right of the Company or any of its Subsidiaries with respect to any patent,
        copyright, proprietary software, service mark, trademark, trade name or other
        right owned or used by the Company or any of its Subsidiaries.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      5.12.  Compliance
        with ERISA.  

       

      (a)  The
        Company and each ERISA Affiliate have operated and administered each Plan
        in
        compliance with all applicable laws except for such instances of noncompliance
        as have not resulted in and could not reasonably be expected to result in
        a
        Material Adverse Effect. Neither the Company nor any ERISA Affiliate has
        incurred any liability pursuant to Title I or IV of ERISA or the penalty or
        excise tax provisions of the Code relating to employee benefit plans (as
        defined
        in section 3 of ERISA), and no event, transaction or condition has occurred
        or exists that could reasonably be expected to result in the incurrence of
        any
        such liability by the Company or any ERISA Affiliate, or in the imposition
        of
        any Lien on any of the rights, properties or assets of the Company or any
        ERISA
        Affiliate, in either case pursuant to Title I or IV of ERISA or to such
        penalty or excise tax provisions or to section 401(a)(29) or 412 of the
        Code or section 4068 of ERISA, other than such liabilities or Liens as would
        not
        be individually or in the aggregate Material.

       

      (b)  The
        present value of the aggregate benefit liabilities under each of the Plans
        (other than Multiemployer Plans), determined as of the end of such Plan’s most
        recently ended plan year on the basis of the actuarial assumptions specified
        for
        funding purposes in such Plan’s most recent actuarial valuation report, did not
        exceed the aggregate current value of the assets of such Plan allocable to
        such
        benefit liabilities by an amount that, individually, or in the aggregate
        for all
        Plans, is Material. The term “benefit liabilities” has the meaning specified in
        section 4001 of ERISA and the terms “current value” and “present value”
have the meaning specified in section 3 of ERISA. 

       

      (c)  The
        Company and its ERISA Affiliates have not incurred withdrawal liabilities
        (and
        are not subject to contingent withdrawal liabilities) under section 4201 or
        4204 of ERISA in respect of Multiemployer Plans that individually or in the
        aggregate are Material.

       

      (d)  The
        expected postretirement benefit obligation (determined as of the last day
        of the
        Company’s most recently ended fiscal year in accordance with Financial
        Accounting Standards Board Statement No. 106, without regard to liabilities
        attributable to continuation coverage mandated by section 4980B of the Code)
        of
        the Company and its Subsidiaries is not Material.

       

      (e)  The
        execution and delivery of this Agreement and the issuance and sale of the
        Notes
        hereunder will not involve any transaction that is subject to the prohibitions
        of section 406 of ERISA or in connection with which a tax could be imposed
        pursuant to section 4975(c)(1)(A)-(D) of the Code. The representation by
        the Company in the first sentence of this Section 5.12(e) is made in reliance
        upon and subject to the accuracy of your representation in Section 6.2 as
        to the
        sources of the funds used to pay the purchase price of the Notes to be purchased
        by you.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      5.13.  Private
        Offering by the Company.  

       

      Neither
        the Company nor anyone acting on its behalf has offered the Notes or any
        similar
        securities for sale to, or solicited any offer to buy any of the same from,
        or
        otherwise approached or negotiated in respect thereof with, any person other
        than you, the Other Purchasers and not more than 14 other Institutional
        Investors, each of which has been offered the Notes at a private sale for
        investment. Neither the Company nor anyone acting on its behalf has taken,
        or
        will take, any action that would subject the issuance or sale of the Notes
        to
        the registration requirements of Section 5 of the Securities Act or to the
        registration requirements of any securities or blue sky laws of any applicable
        jurisdiction.

       

      5.14.  Use
        of Proceeds; Margin Regulations. 

       

      The
        Company will apply the proceeds of the sale of the Notes to refinance
        Indebtedness of the Company as set forth in Schedule 5.14 and for general
        corporate purposes, which may include purchases of the Company’s common stock,
        payment of dividends and assets or business acquisitions. No part of the
        proceeds from the sale of the Notes will be used, directly or indirectly,
        for
        the purpose of buying or carrying any margin stock within the meaning of
        Regulation U of the Board of Governors of the Federal Reserve System (12
        CFR
        221) so as to involve the Company or any holder of Notes in a violation of
        such
        Regulation, or for the purpose of buying or carrying or trading in any
        securities under such circumstances as to involve the Company in a violation
        of
        Regulation X of said Board (12 CFR 224) or to involve any broker or dealer
        in a
        violation of Regulation T of said Board (12 CFR 220). Margin stock does not
        constitute more than 5% of the value of the consolidated assets of the Company
        and its Subsidiaries and the Company does not have any present intention
        that
        margin stock will constitute more than 5% of the value of such assets. As
        used
        in this Section, the terms “margin stock” and “purpose of buying or carrying”
shall have the meanings assigned to them in said Regulation U.

       

      5.15.  Existing
        Indebtedness; Future Liens. 

       

      (a)  Except
        as
        described therein, Schedule 5.15 sets forth a complete and correct list of
        all
        outstanding Indebtedness of the Company and its Subsidiaries as of
        September 30, 2006 (including a description of the obligors and obligees,
        principal amount outstanding and collateral therefor, if any, and Guaranty
        thereof, if any), since which date there has been no Material change in the
        amounts, interest rates, sinking funds, installment payments or maturities
        of
        the Indebtedness of the Company or its Subsidiaries. Neither the Company
        nor any
        Subsidiary is in default and no waiver of default is currently in effect,
        in the
        payment of any principal or interest on any Indebtedness of the Company or
        any
        Subsidiary and no event or condition exists with respect to any Indebtedness
        of
        the Company or any Subsidiary that would permit (or that with notice or the
        lapse of time, or both, would permit) one or more Persons to cause such
        Indebtedness to become due and payable before its stated maturity or before
        its
        regularly scheduled dates of payment.

       

      (b)  Except
        as
        disclosed in Schedule 5.15, neither the Company nor any Subsidiary has agreed
        or
        consented to cause or permit in the future (upon the happening of a contingency
        or otherwise) any of its property, whether now owned or hereafter acquired,
        to
        be subject to a Lien not permitted by Section 10.4.

       

      (c)  Neither
        the Company nor any Subsidiary is a party to, or otherwise subject to any
        provision contained in, any instrument evidencing Indebtedness of the Company
        or
        such Subsidiary, any agreement relating thereto or any other agreement
        (including its charter or other organizational document) that limits the
        amount
        of, or otherwise imposes restrictions on the incurring of, Indebtedness of
        the
        Company, except as specifically indicated in Schedule 5.15.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      5.16.  Foreign
        Assets Control Regulations, etc. 

       

      (a)  Neither
        the sale of the Notes by the Company hereunder nor its use of the proceeds
        thereof will violate the Trading with the Enemy Act, as amended, or any of
        the
        foreign assets control regulations of the United States Treasury Department
        (31
        CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive
        order relating thereto. 

       

      (b)  Neither
        the Company nor any Subsidiary (i) is a Person described or designated in
        the
        Specially Designated Nationals and Blocked Persons List of the Office of
        Foreign
        Assets Control or in Section 1 of the Anti-Terrorism Order or (ii) engages
        in
        any dealings or transactions with any such Person. The Company and its
        Subsidiaries are in compliance, in all material respects, with the USA Patriot
        Act.

       

      (c)  No
        part
        of the proceeds from the sale of the Notes hereunder will be used, directly
        or
        indirectly, in violation of the United States Foreign Corrupt Practices Act
        of
        1977, as amended, assuming in all cases that such Act applies to the
        Company.

       

      5.17.  Status
        under Certain Statutes. 

       

      Neither
        the Company nor any Subsidiary is subject to regulation under the Investment
        Company Act of 1940, as amended, the ICC Termination Act, as amended, or
        the
        Federal Power Act, as amended.

       

      5.18.  Environmental
        Matters. 

       

      (a)  Neither
        the Company nor any Subsidiary has knowledge of any claim or has received
        any
        notice of any claim, and no proceeding has been instituted raising any claim
        against the Company or any of its Subsidiaries or any of their respective
        real
        properties now or formerly owned, leased or operated by any of them or other
        assets, alleging any damage to the environment or violation of any Environmental
        Laws, except, in each case, such as could not reasonably be expected to result
        in a Material Adverse Effect.

       

      (b)  Neither
        the Company nor any Subsidiary has knowledge of any facts that would give
        rise
        to any claim, public or private, of violation of Environmental Laws or damage
        to
        the environment emanating from, occurring on or in any way related to real
        properties now or formerly owned, leased or operated by any of them or to
        other
        assets or their use, except, in each case, such as could not reasonably be
        expected to result in a Material Adverse Effect.

       

      (c)  Neither
        the Company nor any Subsidiary has stored any Hazardous Materials on real
        properties now or formerly owned, leased or operated by any of them and has
        not
        disposed of any Hazardous Materials in a manner contrary to any Environmental
        Laws in each case in any manner that could reasonably be expected to result
        in a
        Material Adverse Effect.

       

      (d)  All
        buildings on all real properties now owned, leased or operated by the Company
        or
        any Subsidiary are in compliance with applicable Environmental Laws, except
        where failure to comply could not reasonably be expected to result in a Material
        Adverse Effect.

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      6.  REPRESENTATIONS
        OF THE PURCHASERS.

       

      6.1.  Purchase
        for Investment. 

       

      You
        represent that you are purchasing the Notes for your own account or for one
        or
        more separate accounts maintained by you or for the account of one or more
        pension or trust funds and not with a view to the distribution thereof, provided
        that the disposition of your or their property shall at all times be within
        your
        or their control. You understand that the Notes have not been registered
        under
        the Securities Act and may be resold only if registered pursuant to the
        provisions of the Securities Act or if an exemption from registration is
        available, except under circumstances where neither such registration nor
        such
        an exemption is required by law, and that the Company is not required to
        register the Notes. You represent that you are an “accredited investor” as
        defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities
        Act.

       

      6.2.  Source
        of Funds. 

       

      You
        represent that at least one of the following statements is an accurate
        representation as to each source of funds (a “Source”) to be used by you to pay
        the purchase price of the Notes to be purchased by you hereunder:

       

      (a)  the
        Source is an “insurance company general account” (as the term is defined in the
        United States Department of Labor’s Prohibited Transaction Exemption (“PTE”)
        95-60) in respect of which the reserves and liabilities (as defined by the
        annual statement for life insurance companies approved by the National
        Association of Insurance Commissioners (the “NAIC Annual Statement”)) for the
        general account contract(s) held by or on behalf of any employee benefit
        plan
        together with the amount of the reserves and liabilities for the general
        account
        contract(s) held by or on behalf of any other employee benefit plans maintained
        by the same employer (or affiliate thereof as defined in PTE 95-60) or by
        the
        same employee organization in the general account do not exceed 10% of the
        total
        reserves and liabilities of the general account (exclusive of separate account
        liabilities) plus surplus as set forth in the NAIC Annual Statement filed
        with
        your state of domicile; or 

       

      (b)  the
        Source is a separate account that is maintained solely in connection with
        your
        fixed contractual obligations under which the amounts payable, or credited,
        to
        any employee benefit plan (or its related trust) that has any interest in
        such
        separate account (or to any participant or beneficiary of such plan (including
        any annuitant)) are not affected in any manner by the investment performance
        of
        the separate account; or

       

      (c)  the
        Source is either (i) an insurance company pooled separate account, within
        the
        meaning of PTE 90-1 (issued January 29, 1990), or (ii) a bank collective
        investment fund, within the meaning of PTE 91-38 (issued July 12, 1991)
        and, except as you have disclosed to the Company in writing pursuant to this
        paragraph (c), no employee benefit plan or group of plans maintained by the
        same
        employer or employee organization beneficially owns more than 10% of all
        assets
        allocated to such pooled separate account or collective investment fund;
        or

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      (d)  the
        Source constitutes assets of an “investment fund” (within the meaning of Part V
        of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional asset
        manager” or “QPAM” (within the meaning of Part V of the QPAM Exemption), no
        employee benefit plan’s assets that are included in such investment fund, when
        combined with the assets of all other employee benefit plans established
        or
        maintained by the same employer or by an affiliate (within the meaning of
        Section V(c)(1) of the QPAM Exemption) of such employer or by the same employee
        organization and managed by such QPAM, exceed 20% of the total client assets
        managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption
        are satisfied, neither the QPAM nor a person controlling or controlled by
        the
        QPAM (applying the definition of “control” in Section V(e) of the QPAM
        Exemption) owns a 5% or more interest in the Company and (i) the identity
        of
        such QPAM and (ii) the names of all employee benefit plans whose assets are
        included in such investment fund have been disclosed to the Company in writing
        pursuant to this clause (d); or 

       

      (e)  the
        Source constitutes assets of a “plan(s)” (within the meaning of Section IV
        of PTE 96-23 (the “INHAM Exemption”)) managed by an “in-house asset manager” or
“INHAM” (within the meaning of Part IV of the INHAM exemption), the conditions
        of Part I(a), (g) and (h) of the INHAM Exemption are satisfied, neither the
        INHAM nor a person controlling or controlled by the INHAM (applying the
        definition of “control” in Section IV(h) of the INHAM Exemption) owns a 5% or
        more interest in the Company and (i) the identity of such INHAM and (ii)
        the
        name(s) of the employee benefit plan(s) whose assets constitute the Source
        have
        been disclosed to the Company in writing pursuant to this clause (e);
        or

       

      (f)  the
        Source is a governmental plan; or

       

      (g)  the
        Source is one or more employee benefit plans, or a separate account or trust
        fund comprised of one or more employee benefit plans, each of which has been
        identified to the Company in writing pursuant to this paragraph (g); or

       

      (h)  the
        Source does not include assets of any employee benefit plan, other than a
        plan
        exempt from the coverage of ERISA.

       

      As
        used
        in this Section 6.2, the terms “employee benefit plan”, “governmental plan” and
“separate account” shall have the respective meanings assigned to such terms in
        Section 3 of ERISA.

       

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      7.  INFORMATION
        AS TO COMPANY.

       

      7.1.  Financial
        and Business Information. 

       

      The
        Company will deliver to each holder of Notes that is an Institutional
        Investor:

       

      (a)  Quarterly
        Statements
        --
        within 60 days after the end of each quarterly fiscal period in each fiscal
        year
        of the Company (other than the last quarterly fiscal period of each such
        fiscal
        year), duplicate copies of,

       

      (i)  a
        consolidated balance sheet of the Company and its Subsidiaries as at the
        end of
        such quarter, 

       

      (ii)  consolidated
        statements of income of the Company and its Subsidiaries for such quarter
        and
        (in the case of the second and third quarters) for the portion of the fiscal
        year ending with such quarter, and

       

      (iii)  consolidated
        statements of cash flows of the Company and its Subsidiaries for such quarter
        or
        (in the case of the second and third quarters) for the portion of the fiscal
        year ending with such quarter, 

       

      setting
        forth in each case in comparative form the figures for the corresponding
        periods
        in the previous fiscal year, all in reasonable detail, prepared in accordance
        with GAAP applicable to quarterly financial statements generally, and certified
        by a Senior Financial Officer as fairly presenting, in all material respects,
        the financial position of the companies being reported on and their results
        of
        operations and cash flows, subject to changes resulting from year-end
        adjustments and, provided that delivery within the time period specified
        above
        of copies of the Company’s Quarterly Report on Form 10-Q prepared in compliance
        with the requirements therefor and filed with the SEC shall be deemed to
        satisfy
        the requirements of this Section 7.1(a);

       

      (b)  Annual
        Statements
        --
        within 120 days after the end of each fiscal year of the Company, duplicate
        copies of 

       

      (i)  a
        consolidated balance sheet of the Company and its Subsidiaries, as at the
        end of
        such year, and 

       

      (ii)  consolidated
        statements of income, changes in stockholders’ equity and cash flows of the
        Company and its Subsidiaries for such year, 

       

      setting
        forth in each case in comparative form the figures for the previous fiscal
        year,
        all in reasonable detail, prepared in accordance with GAAP, and accompanied
        by
        an opinion thereon of independent public accountants of recognized national
        standing, which opinion shall state that such financial statements present
        fairly, in all material respects, the financial position of the companies
        being
        reported upon and their results of operations and cash flows and have been
        prepared in conformity with GAAP, and that the examination of such accountants
        in connection with such financial statements has been made in accordance
        with
        generally accepted auditing standards, and that such audit provides a reasonable
        basis for such opinion in the circumstances, provided that the delivery within
        the time period specified above of the Company’s Annual Report on Form 10-K for
        such fiscal year (together with the Company’s annual report to stockholders, if
        any, prepared pursuant to Rule 14a-3 under the Exchange Act) prepared in
        accordance with the requirements therefor and filed with the SEC shall be
        deemed
        to satisfy the requirements of this Section 7.1(b);

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      (c)  SEC
        and Other Reports
        --
        promptly upon their becoming available, one copy of (i) each financial
        statement, report, notice or proxy statement sent by the Company or any
        Subsidiary to its principal lending banks as a whole (excluding information
        sent
        to such banks in the ordinary course of administration of a bank facility,
        such
        as information relating to pricing and borrowing availability) or to its
        public
        securities holders generally, and (ii) each regular or periodic report, each
        registration statement (without exhibits except as expressly requested by
        such
        holder), and each prospectus and all amendments thereto filed by the Company
        or
        any Subsidiary with the SEC and of all press releases and other statements
        made
        available generally by the Company or any Subsidiary to the public concerning
        developments that are Material; 

       

      (d)  Notice
        of Default or Event of Default
        --
        promptly, and in any event within five Business Days after a Responsible
        Officer
        becoming aware of the existence of any Default or Event of Default or that
        any
        Person has given any notice or taken any action with respect to a claimed
        default hereunder or that any Person has given any notice or taken any action
        with respect to a claimed default of the type referred to in Section 11(f),
        a written notice specifying the nature and period of existence thereof and
        what
        action the Company is taking or proposes to take with respect thereto;

       

      (e)  ERISA
        Matters
        --
        promptly, and in any event within five Business Days after a Responsible
        Officer
        becoming aware of any of the following, a written notice setting forth the
        nature thereof and the action, if any, that the Company or an ERISA Affiliate
        proposes to take with respect thereto:

       

      (i)  with
        respect to any Plan, any reportable event, as defined in section 4043(c) of
        ERISA and the regulations thereunder, for which notice thereof has not been
        waived pursuant to such regulations as in effect on the date hereof, that
        is
        Material; or

       

      (ii)  the
        taking by the PBGC of steps to institute, or the threatening by the PBGC
        of the
        institution of, proceedings under section 4042 of ERISA for the termination
        of, or the appointment of a trustee to administer, any Plan, or the receipt
        by
        the Company or any ERISA Affiliate of a notice from a Multiemployer Plan
        that
        such action has been taken by the PBGC with respect to such Multiemployer
        Plan;
        or

       

      (iii)  any
        event, transaction or condition that could result in the incurrence of any
        liability by the Company or any ERISA Affiliate pursuant to Title I or IV
        of
        ERISA or the penalty or excise tax provisions of the Code relating to employee
        benefit plans, or in the imposition of any Lien on any of the rights, properties
        or assets of the Company or any ERISA Affiliate pursuant to Title I or IV
        of
        ERISA or such penalty or excise tax provisions, if such liability or Lien,
        taken
        together with any other such liabilities or Liens then existing, could
        reasonably be expected to have a Material Adverse Effect; and

       

      (f)  Notices
        from Governmental Authority
        --
        promptly, and in any event within 30 days of receipt thereof, copies of any
        notice to the Company or any Subsidiary from any Federal or state Governmental
        Authority relating to any order, ruling, statute or other law or regulation
        that
        could reasonably be expected to have a Material Adverse Effect; and

       

      (g)  Requested
        Information
        -- with
        reasonable promptness, such other data and information relating to the business,
        operations, affairs, financial condition, assets or properties of the Company
        or
        any of its Subsidiaries or relating to the ability of the Company to perform
        its
        obligations hereunder and under the Notes as from time to time may be reasonably
        requested by any such holder of Notes.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      7.2.  Officer’s
        Certificate. 

       

      Each
        set
        of financial statements delivered to a holder of Notes pursuant to
        Section 7.1(a) or Section 7.1(b) will be accompanied by a certificate
        of a Senior Financial Officer setting forth:

       

      (a)  Covenant
        Compliance
        -- the
        information (including detailed calculations and reconciliations to GAAP
        if
        Agreement Accounting Principles differ from GAAP at the time such certificate
        is
        delivered) required in order to establish whether the Company was in compliance
        with the requirements of Section 10.1 through Section 10.3, inclusive, and
        Section 10.7 during the quarterly or annual period covered by the statements
        then being furnished (including with respect to each such Section, where
        applicable, the calculations of the maximum or minimum amount, ratio or
        percentage, as the case may be, permissible under the terms of such Sections,
        and the calculation of the amount, ratio or percentage then in existence);
        and

       

      (b)  Event
        of Default
        -- a
        statement that such Senior Financial Officer has reviewed the relevant terms
        hereof and has made, or caused to be made, under his or her supervision,
        a
        review of the transactions and conditions of the Company and its Subsidiaries
        from the beginning of the quarterly or annual period covered by the statements
        then being furnished to the date of the certificate and that such review
        shall
        not have disclosed the existence during such period of any condition or event
        that constitutes a Default or an Event of Default or, if any such condition
        or
        event existed or exists (including any such event or condition resulting
        from
        the failure of the Company or any Subsidiary to comply with any Environmental
        Law), specifying the nature and period of existence thereof and what action
        the
        Company shall have taken or proposes to take with respect thereto.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      7.3.  Electronic
        Delivery.

       

      Financial
        statements and officers’ certificates required to be delivered by the Company
        pursuant to Sections 7.1(a), (b) or (c) and Section 7.2 shall be deemed to
        have
        been delivered if (i) the Company shall have timely filed such Form 10-Q or
        Form 10-K, satisfying the requirements of Section 7.1(a) or (b) as the case
        may
        be, with the SEC on “EDGAR” and shall have made such Form and the related
        certificate satisfying the requirements of Section 7.2 available on its home
        page on the worldwide web (at the date of this Agreement located at
        http://www.poolcorp.com) or (ii) such financial statements satisfying the
        requirements of Section 7.1(a) or (b) and related certificate satisfying
        the
        requirements of Section 7.2 are timely posted by or on behalf of the
        Company on IntraLinks or on any other similar website to which each holder
        of
        Notes has free access or (iii) the Company shall have filed any of the items
        referred to in Section 7.1(c) with the SEC on “EDGAR” and shall have made such
        items available on its home page on the worldwide web or if any of such items
        are timely posted by or on behalf of the Company on IntraLinks or on any
        other
        similar website to which each holder of Notes has free access; provided however,
        that in the case of any of clause (i), (ii) or (iii), the Company shall
        concurrently with such filing or posting give notice to each holder of Notes
        of
        such posting or filing and provided further, that upon request of any holder,
        the Company will thereafter deliver written copies of such forms, financial
        statements and certificates to such holder.

       

      7.4.  Visitation. 

       

      The
        Company shall permit the representatives of each holder of Notes that is
        an
        Institutional Investor:

       

      (a)  No
        Default
        -- if no
        Default or Event of Default then exists, at the expense of such holder and
        upon
        reasonable prior notice to the Company, to visit the principal executive
        office
        of the Company, to discuss the affairs, finances and accounts of the Company
        and
        its Subsidiaries with the Company’s officers, and (with the consent of the
        Company, which consent will not be unreasonably withheld) to visit the other
        offices and properties of the Company and each Subsidiary, all at such
        reasonable times as may be reasonably requested in writing; and

       

      (b)  Default
        --
        if a
        Default or Event of Default then exists, at the expense of the Company, to
        visit
        and inspect any of the offices or properties of the Company or any Subsidiary,
        to examine all their respective books of account, records, reports and other
        papers, to make copies and extracts therefrom, and to discuss their respective
        affairs, finances and accounts with their respective officers and independent
        public accountants (and by this provision the Company authorizes said
        accountants to discuss the affairs, finances and accounts of the Company
        and its
        Subsidiaries), all at such reasonable times and as often as may be reasonably
        requested.

       

       

      
        
          
          

        

        
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      8.  PREPAYMENT
        OF THE NOTES.

       

      8.1.  Required
        Prepayments. 

       

      No
        regularly scheduled prepayments are due on the Notes prior to their stated
        maturity.

       

      8.2.  Optional
        Prepayments. 

       

      The
        Company may, at its option, upon notice as provided below, prepay at any
        time
        all, or from time to time any part of, the Notes, in an amount not less than
        $1,000,000 in the aggregate in the case of a partial prepayment, at 100%
        of the
        principal amount so prepaid, plus the Prepayment Premium, if any, determined
        for
        the prepayment date with respect to such principal amount and if such prepayment
        is to occur on any date other than an interest payment date, the LIBOR Breakage
        Amount, if any. The Company will give each holder of Notes to be prepaid
        written
        notice of each optional prepayment under this Section 8.2 not less than 30
        days
        and not more than 60 days prior to the date fixed for such prepayment. Each
        such
        notice shall specify such date (which shall be a Business Day), the aggregate
        principal amount of Notes to be prepaid on such date, the principal amount
        of
        each Note held by such holder to be prepaid (determined in accordance with
        Section 8.4), the interest and Prepayment Premium, if any, to be paid on
        the
        prepayment date with respect to such principal amount being prepaid and the
        amount of any LIBOR Breakage Amount to be paid. “Prepayment Premium” means, if
        Notes are prepaid on or prior to February 12, 2008, 3.0% of the principal
        amount being prepaid; and, if prepaid at any time thereafter, 0.0%.

       

      8.3.  Mandatory
        Offer to Prepay Upon Change of Control.

       

      (a)  Notice
        of Change of Control or Control Event
        -- The
        Company will, within five Business Days after any Responsible Officer has
        knowledge of the occurrence of any Change of Control or Control Event, give
        notice of such Change of Control or Control Event to each holder of Notes
        unless
        notice in respect of such Change of Control (or the Change of Control
        contemplated by such Control Event) shall have been given pursuant to
        subparagraph (b) of this Section 8.3. If a Change of Control has occurred,
        such
        notice shall contain and constitute an offer to prepay Notes as described
        in
        paragraph (c) of this Section 8.3 and shall be accompanied by the certificate
        described in paragraph (g) of this Section 8.3.

       

      (b)  Condition
        to Company Action
        -- The
        Company will not take any action that consummates or finalizes a Change of
        Control unless (i) at least 15 Business Days prior to such action it shall
        have
        given to each holder of Notes written notice containing and constituting
        an
        offer to prepay the Notes accompanied by the certificate described in paragraph
        (g) of this Section 8.3, and (ii) subject to the provisions of
        paragraph (d) below, contemporaneously with such action, it prepays all
        Notes required to be prepaid in accordance with this Section 8.3.

       

      (c)  Offer
        to Prepay Notes
        -- The
        offer to prepay Notes contemplated by paragraphs (a) and (b) of this Section
        8.3
        shall be an offer to prepay, in accordance with and subject to this Section
        8.3,
        all, but not less than all, of the Notes held by each holder (in this case
        only,
“holder” in respect of any Note registered in the name of a nominee for a
        disclosed beneficial owner shall mean such beneficial owner) on a date specified
        in such offer (the “Proposed Prepayment Date”). If such Proposed Prepayment Date
        is in connection with an offer contemplated by paragraph (a) of this Section
        8.3, such date shall be not less than 30 days and not more than 60 days after
        the date of such offer.

       

      
        
          
          

        

        
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      (d)  Acceptance;
        Rejection
        -- A
        holder of Notes may accept or reject the offer to prepay made pursuant to
        this
        Section 8.3 by causing a notice of such acceptance or rejection to be delivered
        to the Company on or before the date specified in the certificate described
        in
        paragraph (g) of this Section 8.3. A failure by a holder of Notes to
        respond to an offer to prepay made pursuant to this Section 8.3, or to reject
        an
        offer as to all of the Notes held by the holder, within such time period
        shall
        be deemed to constitute acceptance of such offer by such holder.

       

      (e)  Prepayment
        --
        Prepayment of the Notes to be prepaid pursuant to this Section 8.3 shall
        be at
        100% of the principal amount of such Notes, together with interest on such
        Notes
        accrued to the date of prepayment and shall not require the payment of any
        Prepayment Premium or LIBOR Breakage Amount. The prepayment shall be made
        on the
        Proposed Prepayment Date except as provided in paragraph (f) of this Section
        8.3.

       

      (f)  Deferral
        Pending Change of Control
        -- The
        obligation of the Company to prepay Notes pursuant to the offers required
        by
        paragraphs (a) and (b) and accepted in accordance with paragraph (d) of this
        Section 8.3 is subject to the occurrence of the Change of Control in respect
        of
        which such offers and acceptances shall have been made. In the event that
        such
        Change of Control does not occur on or prior to the Proposed Prepayment Date
        in
        respect thereof, the prepayment shall be deferred until and shall be made
        on the
        date on which such Change of Control occurs. The Company shall keep each
        holder
        of Notes reasonably and timely informed of (i) any such deferral of the
        date of prepayment, (ii) the date on which such Change of Control and the
        prepayment are expected to occur, and (iii) any determination by the
        Company that efforts to effect such Change of Control have ceased or been
        abandoned (in which case the offers and acceptances made pursuant to this
        Section 8.3 in respect of such Change of Control shall be deemed rescinded).
        Notwithstanding the foregoing, in the event that the prepayment has not been
        made within 90 days after such Proposed Prepayment Date by virtue of the
        deferral provided for in this Section 8.3(f), the Company shall make a new
        offer
        to prepay in accordance with paragraph (c) of this Section 8.3.

       

      (g)  Officer’s
        Certificate
        -- Each
        offer to prepay the Notes pursuant to this Section 8.3 shall be accompanied
        by a
        certificate, executed by a Senior Financial Officer of the Company and dated
        the
        date of such offer, specifying: (i) the Proposed Prepayment Date,
        (ii) that such offer is made pursuant to this Section 8.3, (iii) the
        principal amount of each Note offered to be prepaid, (iv) the interest that
        would be due on each Note offered to be prepaid, accrued to the Proposed
        Prepayment Date, (v) that the conditions of this Section 8.3 have been
        fulfilled, (vi) in reasonable detail, the nature and date or proposed date
        of the Change of Control and (vii) the date by which any holder of a Note
        that
        wishes to reject such offer must deliver notice thereof to the Company, which
        date shall not be earlier than three Business Days prior to the Proposed
        Prepayment Date or, in the case of a prepayment pursuant to Section 8.3(b),
        the
        date of the action referred to in Section 8.3(b)(i). 

       

      
        
          
          

        

        
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      8.4.  Allocation
        of Partial Prepayments. 

       

      In
        the
        case of each partial prepayment of the Notes pursuant to Section 8.2, the
        principal amount of the Notes to be prepaid shall be allocated among all
        of the
        Notes at the time outstanding in proportion, as nearly as practicable, to
        the
        respective unpaid principal amounts thereof not theretofore called for
        prepayment. 

       

      8.5.  Maturity;
        Surrender, etc. 

       

      In
        the
        case of each prepayment of Notes pursuant to this Section 8, the principal
        amount of each Note to be prepaid shall mature and become due and payable
        on the
        date fixed for such prepayment (which shall be a Business Day), together
        with
        interest on such principal amount accrued to such date and, in the case of
        prepayment pursuant to Section 8.2, the applicable Prepayment Premium, if
        any,
        and LIBOR Breakage Amount, if any. From and after such date, unless the Company
        shall fail to pay such principal amount when so due and payable, together
        with
        the interest and Prepayment Premium, if any, and LIBOR Breakage Amount, if
        any,
        as aforesaid, interest on such principal amount shall cease to accrue. Any
        Note
        paid or prepaid in full shall be surrendered to the Company and canceled
        and
        shall not be reissued, and no Note shall be issued in lieu of any prepaid
        principal amount of any Note.

       

      8.6.  Purchase
        of Notes. 

       

      The
        Company will not and will not permit any Affiliate to purchase, redeem, prepay
        or otherwise acquire, directly or indirectly, any of the outstanding Notes
        except upon the payment or prepayment of the Notes in accordance with the
        terms
        of this Agreement and the Notes. The Company will promptly cancel all Notes
        acquired by it or any Affiliate pursuant to any payment or prepayment of
        Notes
        pursuant to any provision of this Agreement and no Notes may be issued in
        substitution or exchange for any such Notes.

       

      8.7.  LIBOR
        Breakage Amount.

       

      The
        term
“LIBOR
        Breakage Amount”
        means
        any loss, cost or expense (other than lost profits) reasonably and actually
        incurred by any holder of a Note as a result of any payment or prepayment
        of
        such Note (whether voluntary, automatic, by reason of acceleration or otherwise,
        but excluding mandatory prepayments pursuant to Section 8.3) on a day other
        than
        an interest payment date or at scheduled maturity thereof, arising from the
        liquidation or reemployment of funds obtained by such holder or from fees
        payable to terminate the deposits from which such funds were obtained. Any
        such
        loss, cost or expense shall be limited to the time period from the date of
        such
        prepayment through the earlier of the next interest payment date or the maturity
        of such Note. Each holder of a Note shall determine the LIBOR Breakage Amount
        with respect to the principal amount of its Notes then being paid or prepaid
        (or
        required to be paid) by written notice to the Company setting forth such
        determination in reasonable detail not less than two Business Days prior
        to the
        date of prepayment. Each such determination shall be conclusive absent manifest
        error.

       

       

      
        
          
          

        

        
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      9.  AFFIRMATIVE
        COVENANTS. 

       

      The
        Company covenants that so long as any of the Notes are outstanding:

       

      9.1.  Compliance
        with Law. 

       

      Without
        limiting Section 10.10, the Company will, and will cause each Subsidiary
        to, comply with all laws, ordinances or governmental rules or regulations
        to
        which each of them is subject, including ERISA, the USA Patriot Act and
        Environmental Laws, and will obtain and maintain in effect all licenses,
        certificates, permits, franchises and other governmental authorizations
        necessary to the ownership of their respective properties or to the conduct
        of
        their respective businesses, in each case to the extent necessary to ensure
        that
        non-compliance with such laws, ordinances or governmental rules or regulations
        or failures to obtain or maintain in effect such licenses, certificates,
        permits, franchises and other governmental authorizations could not,
        individually or in the aggregate, reasonably be expected to have a Material
        Adverse Effect.

       

      9.2.  Insurance. 

       

      The
        Company will, and will cause each Subsidiary to, maintain, with financially
        sound and reputable insurers, insurance with respect to their respective
        properties and businesses against such casualties and contingencies, of such
        types, on such terms and in such amounts (including deductibles, co-insurance
        and self-insurance, if adequate reserves are maintained with respect thereto)
        as
        is customary in the case of entities of established reputations engaged in
        the
        same or a similar business and similarly situated.

       

      9.3.  Maintenance
        of Properties. 

       

      The
        Company will, and will cause each Subsidiary to, maintain and keep, or cause
        to
        be maintained and kept, their respective properties in good repair, working
        order and condition (other than ordinary wear and tear), so that the business
        carried on in connection therewith may be properly conducted at all times,
        provided that this Section shall not prevent the Company or any Subsidiary
        from
        discontinuing the operation and the maintenance of any of its properties
        if such
        discontinuance is desirable in the conduct of its business and the Company
        has
        concluded that such discontinuance could not, individually or in the aggregate,
        reasonably be expected to have a Material Adverse Effect.

       

      9.4.  Payment
        of Taxes and Claims. 

       

      The
        Company will, and will cause each Subsidiary to, file all tax returns required
        to be filed in any jurisdiction and to pay and discharge all taxes shown
        to be
        due and payable on such returns and all other taxes, assessments, governmental
        charges, or levies imposed on them or any of their properties, assets, income
        or
        franchises, to the extent such taxes and assessments have become due and
        payable
        and before they have become delinquent and all claims for which sums have
        become
        due and payable that have or might become a Lien on properties or assets
        of the
        Company or any Subsidiary, provided that neither the Company nor any Subsidiary
        need pay any such tax or assessment or claims if (i) the amount,
        applicability or validity thereof is contested by the Company or such Subsidiary
        on a timely basis in good faith and in appropriate proceedings, and the Company
        or such Subsidiary has established adequate reserves therefor in accordance
        with
        GAAP on the books of the Company or such Subsidiary or (ii) the nonpayment
        of all such taxes, assessments and claims in the aggregate could not reasonably
        be expected to have a Material Adverse Effect.

       

      
        
          
          

        

        
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      9.5.  Corporate
        Existence, etc. 

       

      Subject
        to Section 10.6, the Company will at all times preserve and keep in full
        force
        and effect its corporate existence. Subject to Sections 10.6 and 10.7, the
        Company will at all times preserve and keep in full force and effect the
        corporate (existence of each Subsidiary (unless merged into the Company or
        a
        Wholly-Owned Subsidiary) and all rights and franchises of the Company and
        its
        Subsidiaries unless, in the good faith judgment of the Company, the termination
        of or failure to preserve and keep in full force and effect such corporate
        existence, right or franchise could not, individually or in the aggregate,
        have
        a Material Adverse Effect.

       

      9.6.  Books
        and Records. 

       

      The
        Company will, and will cause each Subsidiary to, maintain proper books of
        record
        and account in conformity with GAAP and all applicable requirements of any
        Governmental Authority having legal or regulatory jurisdiction over the Company
        or such Subsidiary, as the case may be.

       

      9.7.  Subsidiary
        Guaranty; Release.

       

      (a)  Subsidiary
        Guarantors.
        The
        Company will cause each Domestic Subsidiary that becomes a borrower or guarantor
        of Indebtedness in respect of the Credit Agreement, within 10 Business Days
        of
        its becoming a borrower or a guarantor of Indebtedness in respect of the
        Credit
        Agreement, to become a party to the Subsidiary Guaranty, and shall deliver
        to
        each holder:

       

      (i)  an
        executed counterpart of a Joinder to the Subsidiary Guaranty;

       

      (ii)  copies
        of
        such directors’ or other authorizing resolutions, charter, bylaws and other
        constitutive documents of such Subsidiary as the Required Holders may reasonably
        request; and

       

      (iii)  an
        opinion of counsel reasonably satisfactory to the Required Holders covering
        the
        authorization, execution, delivery, compliance with law, no conflict with
        other
        documents, no consents and enforceability of the Subsidiary Guaranty against
        such Subsidiary in form and substance reasonably satisfactory to the Required
        Holders.

       

      (b)  Release
        of Subsidiary Guarantor.
        Each
        holder of a Note fully releases and discharges from the Subsidiary Guaranty
        a
        Subsidiary Guarantor, immediately and without any further act, upon such
        Subsidiary Guarantor being released and discharged as a borrower or guarantor
        under and in respect of the Credit Agreement; provided that (i) no Default
        or Event of Default exists or will exist immediately following such release
        and
        discharge; and (ii) at the time of such release and discharge, the Company
        delivers to each holder of Notes a certificate of a Responsible Officer
        certifying (x) that such Subsidiary Guarantor has been or is being released
        and
        discharged as a borrower or guarantor under and in respect of each of the
        Credit
        Agreement and (y) as to the matters set forth in clause (i). Any outstanding
        Indebtedness of a Subsidiary Guarantor shall be deemed to have been incurred
        by
        such Subsidiary Guarantor as of the date it is released and discharged from
        the
        Subsidiary Guaranty.

       

      
        
          
          

        

        
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      9.8.  Pari
        Passu Ranking.

       

      The
        Indebtedness evidenced by the Notes will at all times rank at least pari
        passu
        with all senior unsecured Indebtedness of the Company.

       

       

      10.  NEGATIVE
        COVENANTS. 

       

      The
        Company covenants that so long as any of the Notes are outstanding:

       

      10.1.  Funded
        Indebtedness.

       

      The
        Company will not, as of the end of any fiscal quarter, permit the ratio of
        (a) the sum of (i) Average Total Funded Indebtedness for the period of 12
        consecutive months ending on or immediately prior to such date plus (ii)
        Average
        Accounts Securitization Proceeds for the period of 12 consecutive months
        ending
        on or immediately prior to such date to (b) EBITDA for the period of 12
        consecutive months ending on or immediately prior to such date to be greater
        than or equal to 3.5 to 1.0.

       

      10.2.  Fixed
        Charge Coverage.

       

      The
        Company will not, as of the end of any fiscal quarter, permit the ratio of
        EBITDAR to Fixed Charges for the four consecutive fiscal quarters of the
        Company
        ending on or immediately prior to such date to be less than 2.00 to
        1.00.

       

      10.3.  Priority
        Debt.

       

      The
        Company will not at any time permit Priority Debt to exceed 20% of Net Worth
        as
        of the end of the most recently completed fiscal quarter of the Company.
        

       

      10.4.  Liens.

       

      The
        Company will not, and will not permit any Subsidiary to, permit to exist,
        create, assume or incur, directly or indirectly, any Lien on its properties
        or
        assets, whether now owned or hereafter acquired, except:

       

      (a)  Liens
        for
        taxes, assessments or governmental charges or levies not then due and delinquent
        or the nonpayment of which is permitted by Section 9.4; 

       

      (b)  any
        attachment or judgment Lien, unless the judgment it secures has not, within
        60
        days after the entry thereof, been discharged or execution thereof stayed
        pending appeal, or has not been discharged within 60 days after the expiration
        of any such stay; 

       

      (c)  Liens
        incidental to the conduct of business or the ownership of properties and
        assets
        (including landlords’, lessors’, carriers’, operators’, warehousemen’s,
        mechanics’, materialmen’s and other similar Liens) and Liens to secure the
        performance of bids, tenders, leases or trade contracts, or to secure statutory
        obligations (including obligations under workers compensation, unemployment
        insurance and other social security legislation), surety or appeal bonds
        or
        other Liens of like general nature incurred in the ordinary course of business
        and not in connection with the borrowing of money;

       

      (d)  encumbrances
        in the nature of leases, subleases, zoning restrictions, easements, rights
        of
        way, minor survey exceptions and other rights and restrictions of record
        on the
        use of real property and defects in title arising or incurred in the ordinary
        course of business, which, individually and in the aggregate, do not materially
        detract from the value of such property or assets subject thereto or materially
        impair the use of the property or assets subject thereto by the Company or
        such
        Subsidiary; 

       

      (e)  Liens
        existing on property or assets of the Company or any Subsidiary as of the
        date
        of this Agreement that are described in Schedule 10.4;

       

      
        
          
          

        

        
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      (f)  Liens,
        

       

      (i)  existing
        on property at the time of its acquisition by the Company or a Subsidiary
        and
        not created in contemplation thereof, whether or not the Indebtedness secured
        by
        such Lien is assumed by the Company or a Subsidiary; or 

       

      (ii)  on
        property or in rights related thereto created contemporaneously with its
        acquisition or within 180 days of the acquisition or completion of construction
        or development thereof to secure or provide for all or a portion of the purchase
        price or cost of the acquisition, construction or development of such property
        after the date of the Closing; or 

       

      (iii)  existing
        on property of a Person at the time such Person is merged or consolidated
        with,
        or becomes a Subsidiary of, or substantially all of its assets are acquired
        by,
        the Company or a Subsidiary and not created in contemplation thereof;

       

      provided
        that in the case of each of clauses (i), (ii) and (iii) such Liens do not
        extend
        to additional property of the Company or any Subsidiary (other than property
        that is an improvement to or is acquired for specific use in connection with
        the
        subject property) and that the aggregate principal amount of Indebtedness
        secured by each such Lien does not exceed fair market value of the property
        subject thereto (as determined in good faith by one or more officers of the
        Company to whom authority to enter into the transaction has been delegated
        by
        the board of directors); 

       

      (g)  Liens
        resulting from extensions, renewals or replacements of Liens permitted by
        paragraphs (e) or (f), provided that (i) there is no increase in the principal
        amount or decrease in maturity of the Indebtedness secured thereby at the
        time
        of such extension, renewal or replacement, (ii) any new Lien attaches only
        to
        the same property theretofore subject to such earlier Lien and (iii) immediately
        after such extension, renewal or replacement no Default or Event of Default
        would exist; 

       

      (h)  Liens
        securing Indebtedness of a Subsidiary owed to the Company or to a Wholly
        Owned
        Subsidiary or of the Company owed to a Wholly Owned Subsidiary; 

       

      (i)  Liens
        incurred in connection with any Accounts Securitization; and

       

      (j)  Liens
        securing Indebtedness not otherwise permitted by paragraphs (a) through (i)
        of this Section 10.4, provided Priority Debt does not at any time exceed
        20% of
        Net Worth as of the end of the most recently completed fiscal quarter of
        the
        Company.

       

      
        
          
          

        

        
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      10.5.  Subsidiary
        Indebtedness.

       

      The
        Company will not permit any Subsidiary, directly or indirectly, to at any
        time
        create, incur, assume, guarantee, have outstanding, or otherwise become or
        remain directly or indirectly liable for, any Indebtedness other than:

       

      (a)  Indebtedness
        of a Subsidiary Guarantor;

       

      (b)  Indebtedness
        outstanding on the date of this Agreement that is described on
        Schedule 10.5 and any extension, renewal, refinancing or refunding thereof,
        provided that the principal amount thereof is not increased; 

       

      (c)  Indebtedness
        owed to the Company or a Wholly Owned Subsidiary;

       

      (d)  Indebtedness
        of a Person outstanding at the time it becomes a Subsidiary and any extension,
        renewal, refinancing or refunding thereof, provided that the principal amount
        thereof is not increased; provided further that (i) such Indebtedness was
        not
        incurred in contemplation of such Person’s becoming a Subsidiary and (ii)
        immediately after such Person becomes a Subsidiary no Default or Event of
        Default exists; 

       

      (e)  Indebtedness
        under Hedging Agreements entered into in the ordinary course of
        business;

       

      (f)  Indebtedness
        not otherwise permitted by the preceding clauses (a) through (e),
        provided that immediately before and after giving effect thereto and to the
        application of the proceeds thereof,

       

      (i)  no
        Default or Event of Default exists, and 

       

      (ii)  Priority
        Debt does not exceed 20% of Net Worth as of the end of the most recently
        completed fiscal quarter of the Company.

       

      
        
          
          

        

        
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      10.6.  Mergers,
        Consolidations, etc.

       

      The
        Company will not consolidate with or merge with any other Person or convey,
        transfer, sell or lease all or substantially all of its assets in a single
        transaction or series of transactions to any Person unless:

       

      (a)  the
        successor formed by such consolidation or the survivor of such merger or
        the
        Person that acquires by conveyance, transfer, sale or lease all or substantially
        all of the assets of the Company as an entirety, as the case may be, is a
        solvent corporation or limited liability company organized and existing under
        the laws of the United States or any state thereof (including the District
        of
        Columbia), and, if the Company is not such successor or survivor, such
        corporation or limited liability company (i) shall have executed and delivered
        to each holder of any Notes its assumption of the due and punctual performance
        and observance of each covenant and condition of this Agreement and the Notes
        and (ii) shall have caused to be delivered to each holder of any Notes an
        opinion of nationally recognized independent counsel or other independent
        counsel reasonably satisfactory to the Required Holders, to the effect that
        all
        agreements or instruments effecting such assumption are enforceable in
        accordance with their terms and comply with the terms hereof; and 

       

      (b)  immediately
        after giving effect to such transaction, no Default or Event of Default shall
        have occurred and be continuing.

       

      10.7.  Sale
        of Assets.

       

      Except
        as
        permitted by Section 10.6, the Company will not, and will not permit any
        Subsidiary to, sell, lease, transfer or otherwise dispose of, including by
        way
        of merger (collectively a “Disposition”), any assets, including capital stock of
        Subsidiaries, in one or a series of transactions, to any Person, other
        than:

       

      (a)  Dispositions
        in the ordinary course of business;

       

      (b)  Dispositions
        by a Subsidiary to the Company or another Wholly Owned Subsidiary or by the
        Company to a Wholly Owned Subsidiary; 

       

      (c)  Dispositions
        pursuant to the Receivables Sale Agreement in connection with an Accounts
        Securitization; or

       

      (d)  Dispositions
        not otherwise permitted by Sections 10.7(a) through 10.7(c), inclusive, provided
        that:

       

      (i)  in
        the
        good faith opinion of the Company, the Disposition is in exchange for
        consideration having a fair market value at least equal to that of the property
        exchanged and is in the best interest of the Company or such Subsidiary;
        

       

      (ii)  immediately
        after giving effect to the Disposition, no Default or Event of Default shall
        exist; and 

       

      (iii)  immediately
        after giving effect to the Disposition, the aggregate net book value of all
        assets that were the subject of any Disposition occurring in the then current
        fiscal year would not exceed 15% of Total Assets as of the last day of the
        most
        recently ended fiscal year of the Company. 

       

      Notwithstanding
        the foregoing, the Company may, or may permit a Subsidiary to, make a
        Disposition and the assets subject to such Disposition shall not be subject
        to
        or included in the foregoing limitation and computation contained in clause
        (iii) of the preceding sentence if, within 365 days of such
        Disposition:

       

      A.  the
        net
        proceeds from such Disposition are reinvested in productive assets to be
        used in
        the existing business of the Company or a Subsidiary; or 

       

      B.  the
        net
        proceeds from such Disposition are applied to the payment or prepayment of
        the
        Notes or any other outstanding Indebtedness of the Company or any Subsidiary
        ranking pari passu with or senior to the Notes (other than Indebtedness in
        respect of any revolving credit or similar credit facility providing the
        Company
        or any Subsidiary with the right to obtain loans or other extensions of credit
        from time to time, except to the extent that in connection with such payment
        of
        Indebtedness the availability of credit under such credit facility is reduced
        by
        an amount not less than the amount of such proceeds applied to the payment
        of
        such Indebtedness). 

       

      For
        purposes of foregoing clause B, if the Company elects to prepay the Notes,
        the Company shall offer to prepay (not less than 30 or more than 60 days
        following such offer) the Notes on a pro rata basis at a price of 100% of
        the
        principal amount of the Notes to be prepaid (without any Prepayment Premium)
        together with interest accrued to the date of prepayment; provided that if
        any
        holder of the Notes declines or rejects such offer, the proceeds that would
        have
        been paid to such holder shall be offered pro rata to the other holders of
        the
        Notes that have accepted the offer. A failure by a holder of Notes to respond
        in
        writing not later than 10 Business Days prior to the proposed prepayment
        date to
        an offer to prepay made pursuant to this Section 10.7 shall be deemed to
        constitute a rejection of such offer by such holder. Whether or not such
        offers
        are accepted by the holders, the entire principal amount of the Notes subject
        thereto shall be deemed to have been prepaid for purposes of foregoing
        clause B.

       

      No
        such
        conveyance, transfer or lease of substantially all of the assets of the Company
        shall have the effect of releasing the Company or any successor corporation
        or
        limited liability company that shall theretofore have become such in the
        manner
        prescribed in this Section 10.7 from its liability under this Agreement or
        the
        Notes.

       

      
        
          
          

        

        
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      10.8.  Nature
        of Business.

       

      The
        Company will not, and will not permit any Subsidiary to, engage in any business
        if, as a result, the general nature of the business in which the Company
        and its
        Subsidiaries, taken as a whole, would then be engaged would be substantially
        changed from the general nature of the business in which the Company and
        its
        Subsidiaries, taken as a whole, are engaged on the date of this Agreement
        as
        described in the Memorandum.

       

      
        
          
          

        

        
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      10.9.  Transactions
        with Affiliates.

       

      The
        Company will not, and will not permit any Subsidiary to, enter into directly
        or
        indirectly any Material transaction or Material group of related transactions
        (including the purchase, lease, sale or exchange of properties of any kind
        or
        the rendering of any service) with any Affiliate (other than the Company
        or
        another Subsidiary), except in the ordinary course and pursuant to the
        reasonable requirements of the Company’s or such Subsidiary’s business and upon
        fair and reasonable terms no less favorable to the Company or such Subsidiary
        than would be obtainable in a comparable arm’s-length transaction with a Person
        not an Affiliate. 

       

      10.10.  Terrorism
        Sanctions Regulations.

       

      The
        Company will not and will not permit any Subsidiary to (a) become a Person
        described or designated in the Specially Designated Nationals and Blocked
        Persons List of the Office of Foreign Assets Control or in Section 1 of the
        Anti
        Terrorism Order or (b) knowingly engage in any dealings or transactions with
        any
        such Person.

       

       

      11.  EVENTS
        OF DEFAULT.

       

      An
“Event
        of Default” shall exist if any of the following conditions or events shall occur
        and be continuing:

       

      (a)  the
        Company defaults in the payment of any principal, Prepayment Premium, if
        any, or
        LIBOR Breakage amount, if any, on any Note when the same becomes due and
        payable, whether at maturity or at a date fixed for prepayment or by declaration
        or otherwise; or 

       

      (b)  the
        Company defaults in the payment of any interest on any Note for more than
        five
        Business Days after the same becomes due and payable; or

       

      (c)  the
        Company defaults in the performance of or compliance with any term contained
        in
        Section 7.1(d) or Sections 10.1 through 10.10; or

       

      (d)  the
        Company defaults in the performance of or compliance with any term
        contained herein (other than those referred to in paragraphs (a), (b) and
        (c) of this Section 11) and such default is not remedied within 30 days
        after the earlier of (i) a Responsible Officer obtaining actual knowledge
        of such default and (ii) the Company receiving written notice of such
        default from any holder of a Note (any such written notice to be identified
        as a
“notice of default” and to refer specifically to this paragraph (d) of
        Section 11); or 

       

      (e)  any
        representation or warranty made in writing by or on behalf of the Company
        or any
        Subsidiary Guarantor or by any officer of the Company or a Subsidiary Guarantor
        in this Agreement, the Subsidiary Guaranty or in any writing furnished in
        connection with the transactions contemplated hereby or thereby proves to
        have
        been false or incorrect in any material respect on the date as of which made;
        or

       

      (f)  (i)
        the
        Company or any Subsidiary is in default (as principal or as guarantor or
        other
        surety) in the payment of any principal of or premium or make-whole amount
        or
        interest on any Indebtedness that is outstanding in an aggregate principal
        amount of at least the greater of $20,000,000 or 2.0% of Total Assets beyond
        any
        period of grace provided with respect thereto, or (ii) the Company or any
        Subsidiary is in default in the performance of or compliance with any term
        of
        any evidence of any Indebtedness that is outstanding in an aggregate principal
        amount of at least the greater of $20,000,000 or 2.0% of Total Assets or
        of any
        mortgage, indenture or other agreement relating thereto or any other condition
        exists, and as a consequence of such default or condition such Indebtedness
        has
        become, or has been declared (or one or more Persons are entitled to declare
        such Indebtedness to be), due and payable before its stated maturity or before
        its regularly scheduled dates of payment, or (iii) as a consequence of the
        occurrence or continuation of any event or condition (other than the passage
        of
        time or the right of the holder of Indebtedness to convert such Indebtedness
        into equity interests), (x) the Company or any Subsidiary has become obligated
        to purchase or repay Indebtedness before its regular maturity or before its
        regularly scheduled dates of payment in an aggregate outstanding principal
        amount of at least the greater of $20,000,000 or 2.0% of Total Assets, or
        (y) one or more Persons have the right to require the Company or any
        Subsidiary so to purchase or repay such Indebtedness; or 

       

      
        
          
          

        

        
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      (g)  the
        Company or any Subsidiary (i) is generally not paying, or admits in writing
        its inability to pay, its debts as they become due, (ii) files, or consents
        by answer or otherwise to the filing against it of, a petition for relief
        or
        reorganization or arrangement or any other petition in bankruptcy, for
        liquidation or to take advantage of any bankruptcy, insolvency, reorganization,
        moratorium or other similar law of any jurisdiction, (iii) makes an
        assignment for the benefit of its creditors, (iv) consents to the
        appointment of a custodian, receiver, trustee or other officer with similar
        powers with respect to it or with respect to any substantial part of its
        property, (v) is adjudicated as insolvent or to be liquidated, or
        (vi) takes corporate action for the purpose of any of the foregoing;
        or

       

      (h)  a
        court
        or Governmental Authority of competent jurisdiction enters an order appointing,
        without consent by the Company or any Subsidiary, a custodian, receiver,
        trustee
        or other officer with similar powers with respect to it or with respect to
        any
        substantial part of its property, or constituting an order for relief or
        approving a petition for relief or reorganization or any other petition in
        bankruptcy or for liquidation or to take advantage of any bankruptcy or
        insolvency law of any jurisdiction, or ordering the dissolution, winding-up
        or
        liquidation of the Company or any Subsidiary, or any such petition shall
        be
        filed against the Company or any Subsidiary and such petition shall not be
        dismissed within 90 days; or 

       

      (i)  a
        final
        judgment or judgments for the payment of money aggregating in excess of an
        amount at least equal to the greater of $20,000,000 or 2.0% of Total Assets
        are
        rendered against one or more of the Company and its Subsidiaries, which
        judgments are not, within 60 days after entry thereof, bonded, paid or otherwise
        discharged or stayed pending appeal, or are not paid or otherwise discharged
        within 90 days after the expiration of such stay; or

       

      (j)  if
        (i)
        any Plan shall fail to satisfy the minimum funding standards of ERISA or
        the
        Code for any plan year or part thereof or a waiver of such standards or
        extension of any amortization period is sought or granted under section 412
        of
        the Code, (ii) a notice of intent to terminate any Plan shall have been or
        is
        reasonably expected to be filed with the PBGC or the PBGC shall have instituted
        proceedings under ERISA section 4042 to terminate or appoint a trustee to
        administer any Plan or the PBGC shall have notified the Company or any ERISA
        Affiliate that a Plan may become a subject of any such proceedings, (iii)
        the
        aggregate “amount of unfunded benefit liabilities” (within the meaning of
        section 4001(a)(18) of ERISA) under all Plans determined in accordance with
        Title IV of ERISA, shall exceed an amount at least equal to the greater of
        $20,000,000 or 2.0% of Total Assets, (iv) the Company or any ERISA Affiliate
        shall have incurred or is reasonably expected to incur any liability pursuant
        to
        Title I or IV of ERISA or the penalty or excise tax provisions of the Code
        relating to employee benefit plans, (v) the Company or any ERISA Affiliate
        withdraws from any Multiemployer Plan, or (vi) the Company or any Subsidiary
        establishes or amends any employee welfare benefit plan that provides
        post-employment welfare benefits in a manner that would increase the liability
        of the Company or any Subsidiary thereunder; and any such event or events
        described in clauses (i) through (vi) above, either individually or together
        with any other such event or events, could reasonably be expected to have
        a
        Material Adverse Effect; or

       

      (k)  the
        Subsidiary Guaranty ceases to be in full force and effect (except in accordance
        with and by reason of the provisions of Section 9.7(b)) or is declared to
        be
        null and void in whole or in material part by a court or other governmental
        or
        regulatory authority having jurisdiction or the validity or enforceability
        thereof shall be contested by the Company or any Subsidiary Guarantor or
        any of
        them renounces any of the same or denies that it has any or further liability
        thereunder.

       

      As
        used
        in Section 11(j), the terms “employee benefit plan” and “employee welfare
        benefit plan” shall have the respective meanings assigned to such terms in
        section 3 of ERISA.

       

       

      
        
          
          

        

        
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      12.  REMEDIES
        ON DEFAULT, ETC.

       

      12.1.  Acceleration.

       

      (a)  If
        an
        Event of Default with respect to the Company described in paragraph (g) or
        (h) of Section 11 (other than an Event of Default described in clause
        (i) of paragraph (g) or described in clause (vi) of paragraph (g)
        by virtue of the fact that such clause encompasses clause (i) of
        paragraph (g)) has occurred, all the Notes then outstanding shall
        automatically become immediately due and payable.

       

      (b)  If
        any
        other Event of Default has occurred and is continuing, any holder or holders
        of
        at least 51% in principal amount of the Notes at the time outstanding may
        at any
        time at its or their option, by notice or notices to the Company, declare
        all
        the Notes then outstanding to be immediately due and payable.

       

      (c)  If
        any
        Event of Default described in paragraph (a) or (b) of Section 11 has
        occurred and is continuing, any holder or holders of Notes at the time
        outstanding affected by such Event of Default may at any time, at its or
        their
        option, by notice or notices to the Company, declare all the Notes held by
        it or
        them to be immediately due and payable.

       

      Upon
        any
        Notes becoming due and payable under this Section 12.1, whether automatically
        or
        by declaration, such Notes will forthwith mature and the entire unpaid principal
        amount of such Notes, plus (x) all accrued and unpaid interest thereon
        (including interest accrued thereon at the Default Rate), (y) any applicable
        Prepayment Premium (to the full extent permitted by applicable law), and
        (z) any
        LIBOR Breakage Amount determined in respect of such principal amount, shall
        all
        be immediately due and payable, in each and every case without presentment,
        demand, protest or further notice, all of which are hereby waived. The Company
        acknowledges, and the parties hereto agree, that each holder of a Note has
        the
        right to maintain its investment in the Notes free from repayment by the
        Company
        (except as herein specifically provided for) and that the provision for payment
        of a Prepayment Premium or LIBOR Breakage Amount by the Company, if any,
        in the
        event that the Notes are prepaid or are accelerated as a result of an Event
        of
        Default, is intended to provide compensation for the deprivation of such
        right
        under such circumstances.

       

      
        
          
          

        

        
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      12.2.  Other
        Remedies.

       

      If
        any
        Default or Event of Default has occurred and is continuing, and irrespective
        of
        whether any Notes have become or have been declared immediately due and payable
        under Section 12.1, the holder of any Note at the time outstanding may proceed
        to protect and enforce the rights of such holder by an action at law, suit
        in
        equity or other appropriate proceeding, whether for the specific performance
        of
        any agreement contained herein or in any Note, or for an injunction against
        a
        violation of any of the terms hereof or thereof, or in aid of the exercise
        of
        any power granted hereby or thereby or by law or otherwise.

       

      12.3.  Rescission.

       

      At
        any
        time after any Notes have been declared due and payable pursuant to clause
        (b)
        or (c) of Section 12.1, the holders of more than 50% in principal amount
        of the
        Notes then outstanding, by written notice to the Company, may rescind and
        annul
        any such declaration and its consequences if (a) the Company has paid all
        overdue interest on the Notes, all principal of and any applicable Prepayment
        Premium and LIBOR Breakage Amount on any Notes that are due and payable and
        are
        unpaid other than by reason of such declaration, and all interest on such
        overdue principal and any Prepayment Premium and LIBOR Breakage Amount and
        (to
        the extent permitted by applicable law) any overdue interest in respect of
        the
        Notes, at the Default Rate, (b) neither the Company nor any other Person
        shall
        have paid any amounts which have become due solely by reason of such
        declaration, (c) all Events of Default and Defaults, other than non-payment
        of amounts that have become due solely by reason of such declaration, have
        been
        cured or have been waived pursuant to Section 17, and (d) no judgment or
        decree
        has been entered for the payment of any monies due pursuant hereto or to
        the
        Notes. No rescission and annulment under this Section 12.3 will extend to
        or
        affect any subsequent Event of Default or Default or impair any right consequent
        thereon.

       

      
        
          
          

        

        
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      12.4.  No
        Waivers or Election of Remedies, Expenses, etc.

       

      No
        course
        of dealing and no delay on the part of any holder of any Note in exercising
        any
        right, power or remedy, shall operate as a waiver thereof or otherwise prejudice
        such holder’s rights, powers or remedies. No right, power or remedy conferred by
        this Agreement or by any Note upon any holder thereof shall be exclusive
        of any
        other right, power or remedy referred to herein or therein or now or hereafter
        available at law, in equity, by statute or otherwise. Without limiting the
        obligations of the Company under Section 15, the Company will pay to the
        holder
        of each Note on demand such further amount as shall be sufficient to cover
        all
        costs and expenses of such holder incurred in any enforcement or collection
        under this Section 12, including reasonable attorneys’ fees, expenses and
        disbursements.

       

       

      13.  REGISTRATION;
        EXCHANGE; SUBSTITUTION OF NOTES.

       

      13.1.  Registration
        of Notes.

       

      The
        Company shall keep at its principal executive office a register for the
        registration and registration of transfers of Notes. The name and address
        of
        each holder of one or more Notes, each transfer thereof and the name and
        address
        of each transferee of one or more Notes shall be registered in such register.
        Prior to due presentment for registration of transfer, the Person in whose
        name
        any Note shall be registered shall be deemed and treated as the owner and
        holder
        thereof for all purposes hereof, and the Company shall not be affected by
        any
        notice or knowledge to the contrary. The Company shall give to any holder
        of a
        Note that is an Institutional Investor, promptly upon request therefor, a
        complete and correct copy of the names and addresses of all registered holders
        of Notes.

       

      13.2.  Transfer
        and Exchange of Notes.

       

      Upon
        surrender of any Note to the Company at the address and to the attention
        of the
        designated officer (all as specified in Section 18(iii)), for registration
        of
        transfer or exchange (and in the case of a surrender for registration of
        transfer accompanied by a written instrument of transfer duly executed by
        the
        registered holder of such Note or such holder’s attorney duly authorized in
        writing and accompanied by the relevant name, address and other information
        for
        notices of each transferee of such Note or part thereof), within 10 Business
        Days thereafter, the Company shall execute and deliver, at the Company’s expense
        (except as provided below), one or more new Notes (as requested by the holder
        thereof) in exchange therefor, in an aggregate principal amount equal to
        the
        unpaid principal amount of the surrendered Note. Each such new Note shall
        be
        payable to such Person as such holder may request and shall be substantially
        in
        the form of Exhibit 1.1. Each such new Note shall be dated and bear interest
        from the date to which interest shall have been paid on the surrendered Note
        or
        dated the date of the surrendered Note if no interest shall have been paid
        thereon. The Company may require payment of a sum sufficient to cover any
        stamp
        tax or governmental charge imposed in respect of any such transfer of Notes.
        Notes shall not be transferred in denominations of less than $100,000, provided
        that if necessary to enable the registration of transfer by a holder of its
        entire holding of Notes, one Note may be in a denomination of less than
        $100,000. Any transferee, by its acceptance of a Note registered in its name
        (or
        the name of its nominee), shall be deemed to have made the representations
        set
        forth in Section 6.2.

       

      
        
          
          

        

        
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      13.3.  Replacement
        of Notes.

       

      Upon
        receipt by the Company at the address and to the attention of the designated
        officer (all as specified in Section 18(iii)) of evidence reasonably
        satisfactory to it of the ownership of and the loss, theft, destruction or
        mutilation of any Note (which evidence shall be, in the case of an Institutional
        Investor, notice from such Institutional Investor of such ownership and such
        loss, theft, destruction or mutilation), and

       

      (a)  in
        the
        case of loss, theft or destruction, of indemnity reasonably satisfactory
        to it
        (provided that if the holder of such Note is, or is a nominee for, an original
        Purchaser or another holder of a Note with a minimum net worth of at least
        $50,000,000 or a Qualified Institutional Buyer, such Person’s own unsecured
        agreement of indemnity shall be deemed to be satisfactory), or

       

      (b)  in
        the
        case of mutilation, upon surrender and cancellation thereof,

       

      within
        10
        Business Days thereafter, the Company at its own expense shall execute and
        deliver, in lieu thereof, a new Note, dated and bearing interest from the
        date
        to which interest shall have been paid on such lost, stolen, destroyed or
        mutilated Note or dated the date of such lost, stolen, destroyed or mutilated
        Note if no interest shall have been paid thereon.

       

       

      14.  PAYMENTS
        ON NOTES.

       

      14.1.  Place
        of Payment.

       

      Subject
        to Section 14.2, payments of principal, Prepayment Premium, if any, LIBOR
        Breakage Amount, if any, and interest becoming due and payable on the Notes
        shall be made in New York, New York at the principal office of JPMorgan Chase
        Bank, N.A. in such jurisdiction. The Company may at any time, by notice to
        each
        holder of a Note, change the place of payment of the Notes so long as such
        place
        of payment shall be either the principal office of the Company in such
        jurisdiction or the principal office of a bank or trust company in such
        jurisdiction.

       

      14.2.  Home
        Office Payment.

       

      So
        long
        as you or your nominee shall be the holder of any Note, and notwithstanding
        anything contained in Section 14.1 or in such Note to the contrary, the Company
        will pay all sums becoming due on such Note for principal, Prepayment Premium,
        if any, LIBOR Breakage Amount, if any, and interest by the method and at
        the
        address specified for such purpose below your name in Schedule A, or by such
        other method or at such other address as you shall have from time to time
        specified to the Company in writing for such purpose, without the presentation
        or surrender of such Note or the making of any notation thereon, except that
        upon written request of the Company made concurrently with or reasonably
        promptly after payment or prepayment in full of any Note, you shall surrender
        such Note for cancellation, reasonably promptly after any such request, to
        the
        Company at its principal executive office or at the place of payment most
        recently designated by the Company pursuant to Section 14.1. Prior to any
        sale
        or other disposition of any Note held by you or your nominee you will, at
        your
        election, either endorse thereon the amount of principal paid thereon and
        the
        last date to which interest has been paid thereon or surrender such Note
        to the
        Company in exchange for a new Note or Notes pursuant to Section 13.2. The
        Company will afford the benefits of this Section 14.2 to any Institutional
        Investor that is the direct or indirect transferee of any Note purchased
        by you
        under this Agreement and that has made the same agreement relating to such
        Note
        as you have made in this Section 14.2.

       

       

      
        
          
          

        

        
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      15.  EXPENSES,
        ETC.

       

      15.1.  Transaction
        Expenses.

       

      Whether
        or not the transactions contemplated hereby are consummated, the Company
        will
        pay all costs and expenses (including reasonable attorneys’ fees of a special
        counsel and, if reasonably required by the Required Holders, local or other
        counsel) incurred by you and each Other Purchaser or holder of a Note in
        connection with such transactions and in connection with any amendments,
        waivers
        or consents under or in respect of this Agreement or the Notes (whether or
        not
        such amendment, waiver or consent becomes effective), including, without
        limitation: (a) the costs and expenses incurred in enforcing or defending
        (or
        determining whether or how to enforce or defend) any rights under this Agreement
        or the Notes or in responding to any subpoena or other legal process or informal
        investigative demand issued in connection with this Agreement or the Notes,
        or
        by reason of being a holder of any Note, (b) the costs and expenses, including
        financial advisors’ fees, incurred in connection with the insolvency or
        bankruptcy of the Company or any Subsidiary or in connection with any work-out
        or restructuring of the transactions contemplated hereby and by the Notes
        and
        (c) the costs and expenses, not in excess of $3,000, incurred in connection
        with
        the initial filing of this Agreement and all related documents and financial
        information with the SVO. The Company will pay, and will save you and each
        Other
        Purchaser or holder of a Note harmless from, all claims in respect of any
        fees,
        costs or expenses, if any, of brokers and finders (other than those, if any,
        retained by a Purchaser or other holder in connection with its purchase of
        the
        Notes).

       

      15.2.  Survival.

       

      The
        obligations of the Company under this Section 15 will survive the payment
        or transfer of any Note, the enforcement, amendment or waiver of any provision
        of this Agreement or the Notes, and the termination of this
        Agreement.

       

       

      16.   
SURVIVAL
        OF REPRESENTATIONS AND WARRANTIES; ENTIRE
        AGREEMENT.

       

      All
        representations and warranties contained herein shall survive the execution
        and
        delivery of this Agreement and the Notes, the purchase or transfer by you
        of any
        Note or portion thereof or interest therein and the payment of any Note,
        and may
        be relied upon by any subsequent holder of a Note, regardless of any
        investigation made at any time by or on behalf of you or any other holder
        of a
        Note. All statements contained in any certificate or other instrument delivered
        by or on behalf of the Company pursuant to this Agreement shall be deemed
        representations and warranties of the Company under this Agreement. Subject
        to
        the preceding sentence, this Agreement and the Notes embody the entire agreement
        and understanding between you and the Company and supersede all prior agreements
        and understandings relating to the subject matter hereof.

       

       

      
        
          
          

        

        
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      17.  AMENDMENT
        AND WAIVER.

       

      17.1.  Requirements. 

       

      This
        Agreement, the Notes and the Subsidiary Guaranty may be amended, and the
        observance of any term hereof or of the Notes may be waived (either
        retroactively or prospectively), with (and only with) the written consent
        of the
        Company and the Required Holders (and the Subsidiary Guarantors, in the case
        of
        the Subsidiary Guaranty), except that (a) no amendment or waiver of any of
        the
        provisions of Section 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term
        (as it is used therein), will be effective as to you unless consented to
        by you
        in writing, and (b) no such amendment or waiver may, without the written
        consent
        of the holder of each Note at the time outstanding affected thereby,
        (i) subject to the provisions of Section 12 relating to acceleration
        or rescission, change the amount or time of any prepayment or payment of
        principal of, or reduce the rate or change the time of payment or method
        of
        computation of interest or of the Prepayment Premium or LIBOR Breakage Amount
        on, the Notes, (ii) change the percentage of the principal amount of the
        Notes the holders of which are required to consent to any such amendment
        or
        waiver, or (iii) amend any of Sections 8, 11(a), 11(b), 12, 17 or 20.

       

      17.2.  Solicitation
        of Holders of Notes.

       

      (a)  Solicitation.
        The
        Company will provide each holder of the Notes (irrespective of the amount
        of
        Notes then owned by it) with sufficient information, sufficiently far in
        advance
        of the date a decision is required, to enable such holder to make an informed
        and considered decision with respect to any proposed amendment, waiver or
        consent in respect of any of the provisions hereof or of the Notes. The Company
        will deliver executed or true and correct copies of each amendment, waiver
        or
        consent effected pursuant to the provisions of this Section 17 to each
        holder of outstanding Notes promptly following the date on which it is executed
        and delivered by, or receives the consent or approval of, the requisite holders
        of Notes.

       

      (b)  Payment.
        The
        Company will not directly or indirectly pay or cause to be paid any
        remuneration, whether by way of supplemental or additional interest, fee
        or
        otherwise, or grant any security or provide other credit support, to any
        holder
        of Notes as consideration for or as an inducement to the entering into by
        any
        holder of Notes of any waiver or amendment of any of the terms and provisions
        hereof unless such remuneration is concurrently paid, or security is
        concurrently granted or other credit support concurrently provided, on the
        same
        terms, ratably to each holder of Notes then outstanding that also enters
        into
        any waiver or amendment of any of the terms and provisions hereto.
        If any
        such remuneration is paid to any holder of Notes that for any reason does
        not
        enter into any waiver or amendment of any of the terms and provisions hereof,
        such remuneration shall also be paid to all other non-consenting
        holders.

       

      
        
          
          

        

        
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      17.3.  Binding
        Effect, etc.

       

      Any
        amendment or waiver consented to as provided in this Section 17 applies
        equally to all holders of Notes and is binding upon them and upon each future
        holder of any Note and upon the Company without regard to whether such Note
        has
        been marked to indicate such amendment or waiver. No such amendment or waiver
        will extend to or affect any obligation, covenant, agreement, Default or
        Event
        of Default not expressly amended or waived or impair any right consequent
        thereon. No course of dealing between the Company and the holder of any Note
        nor
        any delay in exercising any rights hereunder or under any Note shall operate
        as
        a waiver of any rights of any holder of such Note. As used herein, the term
        “this Agreement” or “the Agreement” and references thereto shall mean this
        Agreement as it may from time to time be amended or supplemented.

       

      17.4.  Notes
        held by Company, etc.

       

      Solely
        for the purpose of determining whether the holders of the requisite percentage
        of the aggregate principal amount of Notes then outstanding approved or
        consented to any amendment, waiver or consent to be given under this Agreement
        or the Notes, or have directed the taking of any action provided herein or
        in
        the Notes to be taken upon the direction of the holders of a specified
        percentage of the aggregate principal amount of Notes then outstanding, Notes
        directly or indirectly owned by the Company or any of its Affiliates shall
        be
        deemed not to be outstanding.

       

       

      18.  NOTICES.

       

      All
        notices and communications provided for hereunder shall be in writing and
        sent
        (a) by electronic mail or telecopy if the sender on the same day sends a
        confirming copy of such notice by a recognized overnight delivery service
        (charges prepaid), or (b) by registered or certified mail with return
        receipt requested (postage prepaid), or (c) by a recognized overnight
        delivery service (with charges prepaid). Any such notice must be
        sent:

       

      (i)  if
        to you
        or your nominee, to you or it at the address specified for such communications
        in Schedule A, or at such other address as you or it shall have specified
        to the
        Company in writing, 

       

      (ii)  if
        to any
        other holder of any Note, to such holder at such address as such other holder
        shall have specified to the Company in writing, or

       

      (iii)  if
        to the
        Company, to the Company at its address set forth at the beginning hereof
        to the
        attention of Jennifer M. Neil, General Counsel, or at such other address
        as the
        Company shall have specified to the holder of each Note in writing.

       

      Notices
        under this Section 18 will be deemed given only when actually
        received.

       

       

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

      19.  REPRODUCTION
        OF DOCUMENTS.

       

      Subject
        to Section 20, this Agreement and all documents relating thereto, including
        (a) consents, waivers and modifications that may hereafter be executed,
        (b) documents received by you at the Closing (except the Notes themselves),
        and (c) financial statements, certificates and other information previously
        or hereafter furnished to you, may be reproduced by you by any photographic,
        photostatic, electronic, digital or other similar process and you may destroy
        any original document so reproduced. The Company agrees and stipulates that,
        to
        the extent permitted by applicable law, any such reproduction shall be
        admissible in evidence as the original itself in any judicial or administrative
        proceeding (whether or not the original is in existence and whether or not
        such
        reproduction was made by you in the regular course of business) and any
        enlargement, facsimile or further reproduction of such reproduction shall
        likewise be admissible in evidence. This Section 19 shall not prohibit the
        Company or any other holder of Notes from contesting any such reproduction
        to
        the same extent that it could contest the original, or from introducing evidence
        to demonstrate the inaccuracy of any such reproduction.

       

       

      20.  CONFIDENTIAL
        INFORMATION.

       

      For
        the
        purposes of this Section 20, “Confidential Information” means information
        delivered to you or any Other Purchaser by or on behalf of the Company or
        any
        Subsidiary in connection with the transactions contemplated by or otherwise
        pursuant to this Agreement, that is proprietary in nature and that was clearly
        marked or labeled or otherwise adequately identified when received by such
        Purchaser as being confidential information of the Company or such Subsidiary,
        provided that such term does not include information that (a) was publicly
        known or otherwise known to you prior to the time of such disclosure,
        (b) subsequently becomes publicly known through no act or omission by you
        or any Person acting on your behalf, (c) otherwise becomes known to you
        other than through disclosure by the Company or any Subsidiary, or
        (d) constitutes financial statements delivered to you under Section 7.1
        that are otherwise publicly available. You will maintain the confidentiality
        of
        such Confidential Information in accordance with procedures adopted by you
        in
        good faith to protect confidential information of third parties delivered
        to
        you, provided that you may deliver or disclose Confidential Information to
        (i) your directors, officers, employees, agents, attorneys and affiliates
        (to the extent such disclosure reasonably relates to the administration of
        the
        investment represented by your Notes), (ii) your financial advisors and other
        professional advisors who agree to hold confidential the Confidential
        Information substantially in accordance with the terms of this Section 20,
        (iii) any other holder of any Note, (iv) any Institutional Investor to
        which you sell or offer to sell such Note or any part thereof or any
        participation therein (if such Person has agreed in writing prior to its
        receipt
        of such Confidential Information to be bound by the provisions of this
        Section 20), (v) any Person from which you offer to purchase any
        security of the Company (if such Person has agreed in writing prior to its
        receipt of such Confidential Information to be bound by the provisions of
        this
        Section 20), (vi) any federal or state regulatory authority having
        jurisdiction over you, (vii) the NAIC or the SVO or, in each case, any
        similar organization, or any nationally recognized rating agency that requires
        access to information about your investment portfolio or (viii) any other
        Person to which such delivery or disclosure may be necessary or appropriate
        (w) to effect compliance with any law, rule, regulation or order applicable
        to you, (x) in response to any subpoena or other legal process, (y) in
        connection with any litigation to which you are a party or (z) if an Event
        of Default has occurred and is continuing, to the extent you may reasonably
        determine such delivery and disclosure to be necessary or appropriate in
        the
        enforcement or for the protection of the rights and remedies under your Notes
        and this Agreement. Each holder of a Note, by its acceptance of a Note, will
        be
        deemed to have agreed to be bound by and to be entitled to the benefits of
        this
        Section 20 as though it were a party to this Agreement. On reasonable request
        by
        the Company in connection with the delivery to any holder of a Note of
        information required to be delivered to such holder under this Agreement
        or
        requested by such holder (other than a holder that is a party to this Agreement
        or its nominee), such holder will enter into an agreement with the Company
        embodying the provisions of this Section 20.

       

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

      21.  SUBSTITUTION
        OF PURCHASER.

       

      You
        shall
        have the right to substitute any one of your Affiliates as the purchaser
        of the
        Notes that you have agreed to purchase hereunder, by written notice to the
        Company, which notice shall be signed by both you and such Affiliate, shall
        contain such Affiliate’s agreement to be bound by this Agreement and shall
        contain a confirmation by such Affiliate of the accuracy with respect to
        it of
        the representations set forth in Section 6. Upon receipt of such notice,
        wherever the word “you” is used in this Agreement (other than in this Section
        21), such word shall be deemed to refer to such Affiliate in lieu of you.
        In the
        event that such Affiliate is so substituted as a purchaser hereunder and
        such
        Affiliate thereafter transfers to you all of the Notes then held by such
        Affiliate, upon receipt by the Company of notice of such transfer, wherever
        the
        word “you” is used in this Agreement (other than in this Section 21), such
        word shall no longer be deemed to refer to such Affiliate, but shall refer
        to
        you, and you shall have all the rights of an original holder of the Notes
        under
        this Agreement.

       

       

      22.  MISCELLANEOUS.

       

      22.1.  Successors
        and Assigns.

       

      All
        covenants and other agreements contained in this Agreement by or on behalf
        of
        any of the parties hereto bind and inure to the benefit of their respective
        successors and assigns (including any subsequent holder of a Note) whether
        so
        expressed or not.

       

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

      22.2.  Payments
        Due on Non-Business Days.

       

      Anything
        in this Agreement or the Notes to the contrary notwithstanding (but without
        limiting the requirement in Section 8.4 that the notice of any optional
        prepayment specify a Business Day as the date fixed for such prepayment),
        any
        payment of principal of or Prepayment Premium or LIBOR Breakage Amount or
        interest on any Note that is due on a date other than a Business Day shall
        be
        made on the next succeeding Business Day without including the additional
        days
        elapsed in the computation of the interest payable on such next succeeding
        Business Day; provided that if the maturity date of any Note is a date other
        than a Business Day, the payment otherwise due on such maturity date shall
        be
        made on the next succeeding Business Day and shall include the additional
        days
        elapsed in the computation of interest payable on such next succeeding Business
        Day.

       

      22.3.  Accounting
        Terms.

       

      All
        accounting terms used herein that are not expressly defined in this Agreement
        have the meanings respectively given to them in accordance with GAAP. Except
        as
        otherwise specifically provided herein, (i) all computations made pursuant
        to
        this Agreement shall be made in accordance with Agreement Accounting Principles
        and (ii) all financial statements shall be prepared in accordance with
        GAAP.

       

      22.4.  Severability.

       

      Any
        provision of this Agreement that is prohibited or unenforceable in any
        jurisdiction shall, as to such jurisdiction, be ineffective to the extent
        of
        such prohibition or unenforceability without invalidating the remaining
        provisions hereof, and any such prohibition or unenforceability in any
        jurisdiction shall (to the full extent permitted by law) not invalidate or
        render unenforceable such provision in any other jurisdiction.

       

      22.5.  Construction.

       

      Each
        covenant contained herein shall be construed (absent express provision to
        the
        contrary) as being independent of each other covenant contained herein, so
        that
        compliance with any one covenant shall not (absent such an express contrary
        provision) be deemed to excuse compliance with any other covenant. Where
        any
        provision herein refers to action to be taken by any Person, or which such
        Person is prohibited from taking, such provision shall be applicable whether
        such action is taken directly or indirectly by such Person.

       

      For
        the
        avoidance of doubt, all Schedules and Exhibits attached to this Agreement
        shall
        be deemed to be a part hereof.

       

      22.6.  Counterparts.

       

      This
        Agreement may be executed in any number of counterparts, each of which shall
        be
        an original but all of which together shall constitute one instrument. Each
        counterpart may consist of a number of copies hereof, each signed by less
        than
        all, but together signed by all, of the parties hereto.

       

      22.7.  Governing
        Law.

       

      This
        Agreement shall be construed and enforced in accordance with, and the rights
        of
        the parties shall be governed by, the law of the State of New York excluding
        choice-of-law principles of the law of such State that would permit the
        application of the laws of a jurisdiction other than such State.

       

      22.8.  Jurisdiction
        and Process; Waiver of Jury Trial.

       

      (a)  The
        Company irrevocably submits to the non-exclusive jurisdiction of any New
        York
        State or federal court sitting in the Borough of Manhattan, The City of New
        York, over any suit, action or proceeding arising out of or relating to this
        Agreement or the Notes. To the fullest extent permitted by applicable law,
        the
        Company irrevocably waives and agrees not to assert, by way of motion, as
        a
        defense or otherwise, any claim that it is not subject to the jurisdiction
        of
        any such court, any objection that it may now or hereafter have to the laying
        of
        the venue of any such suit, action or proceeding brought in any such court
        and
        any claim that any such suit, action or proceeding brought in any such court
        has
        been brought in an inconvenient forum.

       

      (b)  The
        Company consents to process being served by or on behalf of any holder of
        Notes
        in any suit, action or proceeding of the nature referred to in
        Section 22.8(a) by mailing a copy thereof by registered or certified mail
        (or any substantially similar form of mail), postage prepaid, return receipt
        requested, to it at its address specified in Section 18 or at such other
        address
        of which such holder shall then have been notified pursuant to said Section.
        The
        Company agrees that such service upon receipt (i) shall be deemed in every
        respect effective service of process upon it in any such suit, action or
        proceeding and (ii) shall, to the fullest extent permitted by applicable
        law, be
        taken and held to be valid personal service upon and personal delivery to
        it.
        Notices hereunder shall be conclusively presumed received as evidenced by
        a
        delivery receipt furnished by the United States Postal Service or any reputable
        commercial delivery service.

       

      (c)  Nothing
        in this Section 22.8 shall affect the right of any holder of a Note to
        serve process in any manner permitted by law, or limit any right that the
        holders of any of the Notes may have to bring proceedings against the Company
        in
        the courts of any appropriate jurisdiction or to enforce in any lawful manner
        a
        judgment obtained in one jurisdiction in any other jurisdiction.

       

      (d)  THE
        PARTIES HERETO WAIVE TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT
        TO
        THIS AGREEMENT, THE NOTES OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH
        OR THEREWITH.

       

      

       

      
        
          
          

        

        
          40

          
            

          

        

        
          
          

          
          

        

      

      If
        you
        are in agreement with the foregoing, please sign the form of agreement on
        the
        accompanying counterpart of this Agreement and return it to the Company,
        whereupon the foregoing shall become a binding agreement between you and
        the
        Company.

       

                                      
Very
        truly
        yours,

      

                                       
POOL
        CORPORATION

      

      

      

                                       
By:
          /s/
        Mark W. Joslin  

                                       
        Name:  Mark
        W.
        Joslin

                                Title:  Vice
        President & Chief Financial
        Officer

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      This
        Agreement is accepted and 

      agreed
        to
        as of the date thereof.

      

      

      METROPOLITAN
        LIFE INSURANCE COMPANY

      

      

      

      By:
          /s/
        Judith A. Gulotta  

      Name:  Judith
        A.
        Gulotta

      Title:  Director

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      HARTFORD
        LIFE INSURANCE COMPANY

      By
        Hartford Investment Management Company

      Its
        Agent
        and Attorney-in-Fact

      

      

      

      By:
          /s/
        Daniel C. Leimbach 

      Name:  Daniel
        C.
        Leimbach

      Title:  Senior
        Vice President

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      PRINCIPAL
        LIFE INSURANCE COMPANY

      By: Principal
        Global Investors, LLC

      a
        Delaware limited liability company,

      its
        authorized signatory

      

      

      

      By:
          /s/
        Alan P. Kress  

      Its:  Counsel

      

      

      

      By:
          /s/
        James C. Fifield  

      Its:  Counsel

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SUN
        LIFE
        ASSURANCE COMPANY OF CANADA (U.S.)

      

      

      

      By:
          /s/
        Ann C. King  

      Name:  Ann
        C.
        King

      Title:  Senior
        Counsel, Investments

      

      

      

      By:
          /s/
        Leo D. Saraceno  

      Name:  Leo
        D.
        Saraceno

      Title:  Senior
        Managing Director, Head of North American Equities

      

      

      

      

      SUN
        LIFE
        INSURANCE AND ANNUITY COMPANY OF NEW YORK

      

      

      

      By:
          /s/
        Ann C. King  

      Name:  Ann
        C.
        King

      Title:  Authorized
        Signer

      

      

      

      By:
          /s/
        Leo D. Saraceno  

      Name:  Leo
        D.
        Saraceno

      Title:  Authorized
        Signer

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ING
        LIFE
        INSURANCE AND ANNUITY COMPANY

      By:
        ING
        Investment Management LLC, as Agent

      

      

      

      By:
          /s/
        Christopher P. Lyons 

      Name:  Christopher
        P. Lyons

      Title:  Senior
        Vice President

      

      

      

      RELIASTAR
        LIFE INSURANCE COMPANY

      By:
        ING
        Investment Management LLC, as Agent

      

      

      

      By:
          /s/
        Christopher P. Lyons 

      Name:  Christopher
        P. Lyons

      Title:  Senior
        Vice President

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      PACIFIC
        LIFE INSURANCE COMPANY

      

      

      

      By:
          /s/
        Cathy Schwartz   

      Name:  Cathy
        Schwartz

      Title:  Assistant
        Vice President

      

      

      

      By:
          /s/
        Diane W. Dales   

      Name:  Diane
        W.
        Dales

      Title:
          Assistant
        Secretary

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      NEW
        YORK
        LIFE INSURANCE COMPANY

      

      

      

      By:
          /s/
        Kathleen A. Haberkern  

      Name:  Kathleen
        A. Haberkern

      Title:  Corporate
        Vice President

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        A

      

      INFORMATION
        RELATING TO PURCHASERS

      

      
        	
                 

                Name
                  and Address of Purchaser

              	 	
                Principal
                  Amount of 

                Notes
                  to be Purchased

              
	
                Metropolitan
                  Life Insurance Company

              	 	
                $30,000,000

              
	
                1
                  MetLife Plaza

                27-01
                  Queens Plaza North

                Long
                  Island City, New York 11101

              	 	 
	 	 	 
	
                (1) All
                  scheduled payments of principal and interest by wire transfer of
                  immediately available funds to:

              
	
                 

                Bank
                  Name:  JPMorgan
                  Chase Bank

                ABA
                  Routing #: 021-000-021

                Account
                  No.:  002-2-410591

                Account
                  Name: Metropolitan
                  Life Insurance Company

                Ref: Pool
                  Corporation 5.80% Floating Rate Senior Notes due February 12, 2012
                  

              
	
                with
                  sufficient information to identify the source and application of
                  such
                  funds, including issuer, PPN#, interest rate, maturity and whether
                  payment
                  is of principal, interest, make whole amount or otherwise. 

                 

                For
                  all payments other than scheduled payments of principal and interest,
                  the
                  Company shall seek instructions from the holder, and in the absence
                  of
                  instructions to the contrary, will make such payments to the account
                  and
                  in the manner set forth above.

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                (2) All
                  notices of payments and communications:

              
	
                 

                Metropolitan
                  Life Insurance Company

                Investments,
                  Private Placements

                P.O.
                  Box 1902

                10
                  Park Avenue

                Morristown,
                  New Jersey 07962-1902

                Attention:
                  Director

                Facsimile
                  (973) 355-4250

                 

                With
                  a copy
                  OTHER than with respect to deliveries of financial statements to:

                 

                Metropolitan
                  Life Insurance Company

                P.O.
                  Box 1902

                10
                  Park Avenue

                Morristown,
                  New Jersey 07962-1902

                Attention:
                  Chief Counsel-Securities Investments (PRIV)

                Facsimile
                  (973) 355-4338

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                (3) Upon
                  closing, please forward to us a copy of the Company’s legal bill
                  concerning this transaction for our records.

                 

                In
                  addition, please send (1) one complete set of closing documents
                  with
                  original signatures; (2) two bound sets of conformed copies of
                  the
                  principal documents; and (3) 1 CD-ROM of the closing documents
                  to:

                 

                Metropolitan
                  Life Insurance Company

                Attention:
                  Thomas J. Pasuit, Esq.

                10
                  Park Avenue/P.O. Box 1902

                Morristown,
                  New Jersey 07962

                 

                AND

                 

                One
                  set of copies of the principal documents, or, if possible, one
                  CD-ROM
                  to:

                 

                MetLife

                Attention:
                  Mary Phillips

                18210
                  Crane Nest Drive

                Tampa,
                  Florida 33647-2748

                (813)
                  983-4564

              
	
                (4) Address
                  for delivery of Notes:

                 

                Metropolitan
                  Life Insurance Company

                Securities
                  Investments, Law Department

                P.O.
                  Box 1902

                10
                  Park Avenue

                Morristown,
                  New Jersey 07962-1902

                Attention:
                  Thomas J. Pasuit, Esq. 

              	 
	
                (5) E-mail
                  Address for Electronic Delivery: jryvicker@metlife.com

              
	
                (6) Tax
                  ID No.: 13-5581829

              	 	 

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INFORMATION
        RELATING TO PURCHASERS

      

      
        	
                 

                Name
                  and Address of Purchaser

              	 	
                Principal
                  Amount of 

                Notes
                  to be Purchased

              
	
                Hartford
                  Life Insurance Company

              	 	
                $5,000,000

                $5,000,000

                $5,000,000

                $3,000,000

              
	 	 	 
	
                (1) All
                  payments by wire transfer of immediately available funds
                  to:

              
	
                 

                JP
                  Morgan Chase

                4
                  New York Plaza

                New
                  York New York 10004

                Bank
                  ABA No. 021000021

                Chase
                  NYC/Cust

                A/C
                  # 900-9-000200 for F/C/T G06620-GLI

                Attn:
                  Bond Interest/Principal - 

                Pool
                  Corporation Senior Notes due February 2012

                PPN#________
                  Prin $__________ Int $____________

              
	 	
                with
                  sufficient information 

                to
                  identify the source and application of such funds.

              
	 	 	 	 
	
                (2) All
                  notices of payments and written confirmations of such wire
                  transfers:

              	 	 
	
                 

                Hartford
                  Investment Management Company

                c/o
                  Portfolio Support

                 

                Regular
                  Mailing Address

                P.O.
                  Box 1744

                Hartford,
                  CT 06144-1744

                 

                Overnight
                  Mailing Address

                55
                  Farmington Avenue

                Hartford,
                  Connecticut 06105

                Telefacsimile:
                  (860) 297-8875/8876

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                (3) All
                  other communications:

              	 	 
	
                 

                Hartford
                  Investment Management Company

                c/o
                  Investment Department - Private Placements

                 

                Regular
                  Mailing Address

                P.O.
                  Box 1744

                Hartford,
                  CT 06144-1744

                 

                Overnight
                  Mailing Address

                55
                  Farmington Avenue

                Hartford,
                  Connecticut 06105

                Telefacsimile:
                  (860) 297-8874

              
	
                (4) Address
                  for delivery of Notes:

                 

                JPMorgan
                  Chase

                4
                  New York Plaza

                New
                  York, New York 10004

                Attn: John
                  Bouquet

                Phy/Rec
                  - 11th Floor

                Phone:
                  212-623-2840

                 

                Custody
                  Account Number: G06620-GLI must appear on outside of
                  envelope

              
	
                (5) E-mail
                  Address for Electronic Delivery:

                 

                eva.konopka@himco.com

              	 
	
                (6) Tax
                  ID No.: 06-0974148

              	 	 

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INFORMATION
        RELATING TO PURCHASERS

      

      
        	
                 

                Name
                  and Address of Purchaser

              	 	
                Principal
                  Amount of 

                Notes
                  to be Purchased

              
	
                Principal
                  Life Insurance Company

              	 	
                $10,080,000

                $5,420,000

                $500,000

              
	 	 	 
	 	 	 
	 	 	 
	
                (1) All
                  payments on account of the Notes to be made by 12:00 noon (New
                  York City
                  time) by wire transfer of immediately available funds
                  to:

              
	
                 

                ABA
                  No.: 121000248

                Wells
                  Fargo Bank, N.A.

                San
                  Francisco, CA

                For
                  credit to Principal Life Insurance Company

                Account
                  No.: 0000014752

                OBI
                  PFGSE (S) B0068955() 

                Attn:
                  (cusip number _______- Pool Corporation)

              
	 	
                With
                  sufficient information (including Cusip number, interest rate,
                  maturity
                  date, interest amount, principal amount and premium amount, if
                  applicable)
                  to identify the source and application of such funds.

              
	 	 	 	 
	
                (2) All
                  notices of payments and written confirmations of such wire
                  transfers:

              
	
                 

                Principal
                  Global Investors, LLC 

                ATTN:
                  Fixed Income Private Placements 

                711
                  High Street, G-26

                Des
                  Moines, IA 50392-0800

                 

                and
                  via Email: Privateplacements2@exchange.principal.com

                 

                With
                  a copy of any notices related to scheduled payments, prepayments,
                  rate
                  reset notices to:

                 

                Principal
                  Global Investors, LLC

                Attn:
                  Investment Accounting Fixed Income Securities 

                711
                  High Street

                Des
                  Moines, Iowa 50392-0960

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                (3) All
                  other communications:

              	 	 
	
                 

                Principal
                  Global Investors, LLC 

                ATTN:
                  Fixed Income Private Placements 

                711
                  High Street, G-26

                Des
                  Moines, IA 50392-0800

                 

                and
                  via Email: Privateplacements2@exchange.principal.com

              
	
                (4) Upon
                  closing, deliver Notes and one (1) original set of closing documents,
                  two
                  (2) electronic sets, and one (1) conformed copy of same to:

                 

                Principal
                  Global Investors, LLC

                711
                  High Street, G-24

                Des
                  Moines, Iowa 50392-0301

                Attn.:
                  Sally D. Sorensen 

              
	
                (5) E-mail
                  Address for Electronic Delivery:

                 

                Privateplacements2@exchange.principal.com

              	 
	
                (6) Tax
                  ID No.: 42-0127290

              	 	 

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INFORMATION
        RELATING TO PURCHASERS

      

      
        	
                 

                Name
                  of Purchaser

              	 	
                Principal
                  Amount of 

                Notes
                  to be Purchased

              
	
                Sun
                  Life Assurance Company of Canada (U.S.)

              	
                $4,000,000

              
	 	 	 
	
                (1) All
                  payments by wire transfer of immediately available funds
                  to:

              
	
                 

                Mellon
                  Bank of New England

                ABA
                  #: 011001234 / BOS SAFE DEP

                DDA:
                  125261

                Attention:
                  MBS Income CC 1253

                Account
                  Name: Sun US - Other MVA Fixed Account

                Account
                  Number: KEYF00330002

              
	
                with
                  sufficient information to identify the source and application of
                  such
                  funds. All wire transfers are to be accompanied by the PPN and
                  by the
                  source and the principal and interest application of the funds.
                  

              
	 	 	 	 
	
                (2) Written
                  notice of each routine payment and any audit
                  confirmation
                  is
                  to be sent to Sun Life at:

              
	
                 

                One
                  Sun Life Executive Park

                Wellesley
                  Hills, MA 02481

                Attention:
                  Manager, Securities Operations, SC 1395

              
	
                (3) All
                  other notices and correspondence, including notices of non-routine
                  payments,
                  are to be forwarded to Sun Life at:

              
	
                 

                One
                  Sun Life Executive Park

                Wellesley
                  Hills, MA 02481

                Attention:
                  Investment Division/Private Fixed Income, SC 1303

              
	
                (4) Upon
                  closing, send two (2) sets of closing documents to:

                 

                Srbui
                  Seferian, Senior Director, Private Fixed Income

                Sun
                  Capital Advisers LLC

                One
                  Sun Life Executive Park, SC 1303

                Wellesley
                  Hills, MA 02481

              
	
                (5) Address
                  for delivery of Notes:

                 

                One
                  Sun Life Executive Park

                Wellesley
                  Hills, MA 02481

                Attention:
                  Linda R. Guillette, SC 1303

              
	
                (6) Tax
                  ID No.: 04-2461439

              	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INFORMATION
        RELATING TO PURCHASERS

      

      
        	
                 

                Name
                  of Purchaser

              	 	
                Principal
                  Amount of 

                Notes
                  to be Purchased

              
	
                Sun
                  Life Insurance and Annuity Company of New York

              	
                $4,000,000

              
	 	 	 
	
                (1) All
                  payments by wire transfer of immediately available funds
                  to:

              
	
                 

                Mellon
                  Bank of New England

                ABA
                  #: 011001234 / BOS SAFE DEP

                DDA:
                  125261

                Attention:
                  MBS Income CC 1253

                Account
                  Name: Sun Life New York - MVA Account

                Account
                  Number: KBLF00050002

              
	
                with
                  sufficient information to identify the source and application of
                  such
                  funds. All wire transfers are to be accompanied by the PPN and
                  by the
                  source and the principal and interest application of the funds.
                  

              
	 	 	 	 
	
                (2) Written
                  notice of each routine payment and any audit confirmation
                  is
                  to be sent to Sun Life at:

              
	
                 

                One
                  Sun Life Executive Park

                Wellesley
                  Hills, MA 02481

                Attention:
                  Manager, Securities Operations, SC 1395

              
	
                (3) All
                  other notices and correspondence, including notices of non-routine
                  payments,
                  are to be forwarded to Sun Life at:

              
	
                 

                One
                  Sun Life Executive Park

                Wellesley
                  Hills, MA 02481

                Attention:
                  Investment Division/Private Fixed Income, SC 1303

              
	
                (4) Upon
                  closing, send two (2) sets of closing documents to:

                 

                Srbui
                  Seferian, Senior Director, Private Fixed Income

                Sun
                  Capital Advisers LLC

                One
                  Sun Life Executive Park, SC 1303

                Wellesley
                  Hills, MA 02481

              
	
                (5) Address
                  for delivery of Notes:

                 

                One
                  Sun Life Executive Park

                Wellesley
                  Hills, MA 02481

                Attention:
                  Linda R. Guillette, SC 1303

              
	
                (6) Tax
                  ID No.: 04-2845273

              	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INFORMATION
        RELATING TO PURCHASERS

      

      
        	
                 

                Name
                  of Purchaser

              	 	
                Principal
                  Amount of 

                Notes
                  to be Purchased

              
	
                Sun
                  Life Insurance and Annuity Company of New York

              	
                $4,000,000

              
	 	 	 
	
                (1) All
                  payments by wire transfer of immediately available funds
                  to:

              
	
                 

                Mellon
                  Bank of New England

                ABA
                  #: 011001234 / BOS SAFE DEP

                DDA:
                  125261

                Attention:
                  MBS Income CC 1253

                Account
                  Name: Sun Life New York - Sun Capital

                Account
                  Number: KBLF00020002

              
	
                with
                  sufficient information to identify the source and application of
                  such
                  funds. All wire transfers are to be accompanied by the PPN and
                  by the
                  source and the principal and interest application of the funds.
                  

              
	 	 	 	 
	
                (2) Written
                  notice of each routine payment and any audit
                  confirmation
                  is
                  to be sent to Sun Life at:

              
	
                 

                One
                  Sun Life Executive Park

                Wellesley
                  Hills, MA 02481

                Attention:
                  Manager, Securities Operations, SC 1395

              
	
                (3) All
                  other notices and correspondence, including notices of non-routine
                  payments,
                  are to be forwarded to Sun Life at:

              
	
                 

                One
                  Sun Life Executive Park

                Wellesley
                  Hills, MA 02481

                Attention:
                  Investment Division/Private Fixed Income, SC 1303

              
	
                (4) Upon
                  closing, send two (2) sets of closing documents to:

                 

                Srbui
                  Seferian, Senior Director, Private Fixed Income

                Sun
                  Capital Advisers LLC

                One
                  Sun Life Executive Park, SC 1303

                Wellesley
                  Hills, MA 02481

              
	
                (5) Address
                  for delivery of Notes:

                 

                One
                  Sun Life Executive Park

                Wellesley
                  Hills, MA 02481

                Attention:
                  Linda R. Guillette, SC 1303

              
	
                (6) Tax
                  ID No.: 04-2845273

              	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INFORMATION
        RELATING TO PURCHASERS

      

      
        	
                 

                Name
                  of Purchaser

              	 	
                Principal
                  Amount of 

                Notes
                  to be Purchased

              
	
                ING
                  LIFE INSURANCE AND ANNUITY COMPANY

              	 	
                $4,500,000

              
	 	 	 
	
                (1) All
                  payments on account of Notes held by such purchaser shall be made
                  by wire
                  transfer of immediately available funds for credit to:

              
	
                 

                The
                  Bank of New York

                ABA#:
                  021000018

                 

                BFN: IOC
                  566 (for scheduled principal and interest payments)

                Attn: P&I
                  Department

                Ref: ING
                  Life Insurance and Annuity Company, Acct. No. 216101 and [insert Cusip No.]

                 

                or

                 

                BFN: IOC
                  565/INST’L CUSTODY (for all payments other than scheduled principal and
                  interest)

                Attn: P&I
                  Department

                Ref: ING
                  Life Insurance and Annuity Company, Acct. No. 216101 and [insert Cusip
                  No.]

              
	 	
                Each
                  such wire transfer shall set forth the name of the Issuer, the
                  full title
                  (including the coupon rate, issuance date, and final maturity date)
                  of the
                  Notes on account of which such payment is made, a reference to
                  the PPN,
                  and the due date and application (as among principal, premium and
                  interest) of the payment being made.

              
	 	 	 	 
	
                (2) All
                  notices of payments and written confirmations of such wire
                  transfers:

              
	
                 

                ING
                  Investment Management LLC

                5780
                  Powers Ferry Road NW, Suite 300

                Atlanta,
                  GA 30327-4347

                Attn:
                  Operations/Settlements

                Fax:
                  (770) 690-4886

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                (3) All
                  other communications and notices:

              	 	 
	
                 

                ING
                  Investment Management LLC

                100
                  Washington Avenue South, Suite 1635

                Minneapolis,
                  MN 55401-2121

                Attn:
                  Martin Rosacker

                Phone:
                  (612) 342-7138

                Fax:
                  (612) 372-5368

                 

                with
                  copy to:

                 

                ING
                  Investment Management LLC

                5780
                  Powers Ferry Road NW, Suite 300

                Atlanta,
                  GA 30327-4347

                Attn:
                  Private Placements

                Fax:
                  (770) 690-5057

              
	
                (4) Address
                  for delivery of Notes:

                 

                The
                  Bank of New York

                One
                  Wall Street

                Window
                  A - 3rd Floor

                New
                  York, NY 10286

                 

                with
                  a copy to:

                 

                ING
                  Investment Management LLC

                5780
                  Powers Ferry Road NW, Suite 300

                Atlanta,
                  GA 30327-4347

                Attn:
                  Private Placements

                Fax:
                  (770) 690-5057

                 

                And
                  a facsimile copy to:

                 

                Patti
                  Boss

                Private
                  Placements - Legal

                ING
                  Investment Management

                Direct
                  Fax: (770) 690-5168

                 

                Please
                  include in the cover letter accompanying the Notes a reference
                  to the
                  Purchaser’s account number (ALA - Acct. No.
                  216101).

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                (5) Upon
                  closing, send two (2) sets of closing documents and conformed copies
                  of
                  the final Note Purchase Agreement to:

                 

                Patti
                  Boss

                Private
                  Placements - Legal

                ING
                  Investment Management

                5780
                  Powers Ferry Road, N.W., Suite 300

                Atlanta,
                  GA 30327

              
	
                (6) Tax
                  ID No.: 71-0294708

              	 	 

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INFORMATION
        RELATING TO PURCHASERS

      

      
        	
                 

                Name
                  of Purchaser

              	 	
                Principal
                  Amount of 

                Notes
                  to be Purchased

              
	
                RELIASTAR
                  LIFE INSURANCE COMPANY

              	
                $5,500,000

              
	 	 	 
	
                (1) All
                  payments on account of Notes held by such purchaser shall be made
                  by wire
                  transfer of immediately available funds for credit to:

              
	
                 

                The
                  Bank of New York

                 

                BFN: IOC
                  566/INST’L CUSTODY (for scheduled principal and interest
                  payments)

                ABA#: 021000018

                Ref: ReliaStar
                  Life Insurance Company, Acct. No. 187035 and [insert
                  Cusip No.]

                 

                or

                 

                BFN: IOC
                  565/INST’L CUSTODY (for all payments other than scheduled principal and
                  interest)

                ABA#: 021000018

                Ref: ReliaStar
                  Life Insurance Company, Acct. No. 187035 and [insert
                  Cusip No.]

              
	 	
                Each
                  such wire transfer shall set forth the name of the Issuer, the
                  full title
                  (including the coupon rate, issuance date, and final maturity date)
                  of the
                  Notes on account of which such payment is made, a reference to
                  the PPN,
                  and the due date and application (as among principal, premium and
                  interest) of the payment being made.

              
	 	 	 	 
	
                (2) All
                  notices of payments and written confirmations of such wire
                  transfers:

              
	
                 

                ING
                  Investment Management LLC

                5780
                  Powers Ferry Road NW, Suite 300

                Atlanta,
                  GA 30327-4347

                Attn:
                  Operations/Settlements

                Fax:
                  (770) 690-4886

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                (3) All
                  other communications and notices:

              	 	 
	
                 

                ING
                  Investment Management LLC

                100
                  Washington Avenue South, Suite 1635

                Minneapolis,
                  MN 55401-2121

                Attn:
                  Martin Rosacker

                Phone:
                  (612) 342-7138

                Fax:
                  (612) 372-5368

                 

                with
                  copy to:

                 

                ING
                  Investment Management LLC

                5780
                  Powers Ferry Road NW, Suite 300

                Atlanta,
                  GA 30327-4347

                Attn:
                  Private Placements

                Fax:
                  (770) 690-5057

              
	
                (4) Address
                  for delivery of Notes:

                 

                The
                  Bank of New York

                One
                  Wall Street

                Window
                  A - 3rd Floor

                New
                  York, NY 10286

                 

                with
                  a copy to:

                 

                ING
                  Investment Management LLC

                5780
                  Powers Ferry Road NW, Suite 300

                Atlanta,
                  GA 30327-4347

                Attn:
                  Private Placements

                Fax:
                  (770) 690-5057

                 

                and
                  a facsimile copy to:

                 

                Patti
                  Boss

                Private
                  Placements - Legal

                ING
                  Investment Management

                Direct
                  Fax: (770) 690-5168

                 

                Please
                  include in the cover letter accompanying the Notes a reference
                  to the
                  Purchaser’s account number (RLI - Acct. No.
                  187035).

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                (6) Upon
                  closing, send two (2) sets of closing documents and conformed copies
                  of
                  the final Note Purchase Agreement to:

                 

                Patti
                  Boss

                Private
                  Placements - Legal

                ING
                  Investment Management

                5780
                  Powers Ferry Road, N.W., Suite 300

                Atlanta,
                  GA 30327

              
	
                (5) Tax
                  ID No.: 41-0451140

              	 	 

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INFORMATION
        RELATING TO PURCHASERS

      

      
        	
                 

                Name
                  and Address of Purchaser

              	 	
                Principal
                  Amount of 

                Notes
                  to be Purchased

              
	
                Pacific
                  Life Insurance Company

                700
                  Newport Center Drive

                Newport
                  Beach, CA 92660

              	 	
                $5,000,000

                $1,000,000

                $1,000,000

                $1,000,000

              
	
                Notes
                  to be registered in the name of : Mac & Co.

              	 
	 	 	 
	
                (1) All
                  payments by wire transfer of immediately available funds
                  to:

              
	
                 

                Mellon
                  Trust of New England

                ABA#
                  0110-0123-4

                DDA
                  125261

                Attn:
                  MBS Income CC: 1253

                A/C
                  Name: Pacific Life General Account/PLCF1810132

                Regarding:
                  Security Description & PPN

              
	 	
                with
                  sufficient information to identify the source and application of
                  such
                  funds.

              
	 	 	 	 
	
                (2) All
                  notices of payments and written confirmations of such wire transfers
                  to:

              
	
                 

                Mellon
                  Trust

                Attn:
                  Pacific Life Accounting Team

                Three
                  Mellon Bank Center

                AIM
                  # 153-3610

                Pittsburgh,
                  PA 15259

                FAX#
                  412-236-7529

                 

                And

                 

                Pacific
                  Life Insurance Company

                Attn:
                  Securities Administration - Cash Team

                700
                  Newport Center Drive

                Newport
                  Beach, CA 92660-6397

                FAX#
                  949-640-4013

              
	
                (3) All
                  other communications:

              	 	 
	
                 

                Pacific
                  Life Insurance Company

                Attn:
                  Securities Department

                700
                  Newport Center Drive

                Newport
                  Beach, CA 92660-6397

                FAX#
                  949-219-5406

              
	
                (4) Address
                  for delivery of Notes:

                 

                Mellon
                  Securities Trust Company

                120
                  Broadway, 13th Floor

                New
                  York, NY 10271

                Attn:
                  Robert Ferraro 212.374.1918

                A/C
                  Name: Pacific
                  Life General Acct

                A/C
                  #: PLCF1810132

              
	
                (5) E-mail
                  Address for Electronic Delivery:
                  jason.todd@pacificlife.com

              
	
                (6) Tax
                  ID No.: 95-1079000

              	 	 

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INFORMATION
        RELATING TO PURCHASERS

      

      
        	
                 

                Name
                  and Address of Purchaser

              	 	
                Principal
                  Amount of 

                Notes
                  to be Purchased

              
	
                New
                  York Life Insurance Company

              	 	
                $6,000,000

              
	 	 	 
	 	 	 
	
                (1) All
                  payments by wire transfer of immediately available funds
                  to:

              
	
                 

                JPMorgan
                  Chase Bank

                New
                  York, New York 10019

                ABA
                  No. 021-000-021

                Credit:
                  New York Life Insurance Company

                General
                  Account No. 008-9-00687

                 

                with
                  sufficient information (including issuer, PPN number, interest
                  rate,
                  maturity and whether payment is of principal, premium, or interest)
                  to
                  identify the source and application of such funds.

              
	 	 	 	 
	
                (2) All
                  notices of payments and written confirmations of such wire
                  transfers:

              
	
                 

                New
                  York Life Insurance Company

                c/o
                  New York Life Investment Management LLC

                51
                  Madison Avenue

                New
                  York, New York 10010-1603

                 

                Attention: Financial
                  Management and Operations Group

                Securities
                  Operations

                2nd
                  Floor

                Fax
                  #: (212) 447-4160

              
	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                (3) All
                  other communications:

              	 	 
	
                 

                New
                  York Life Insurance Company

                c/o
                  New York Life Investment Management LLC

                51
                  Madison Avenue

                New
                  York, New York 10010-1603

                 

                Attention: Securities
                  Investment Group

                Private
                  Finance

                2nd
                  Floor

                Fax
                  #: (212) 447-4122

                 

                and
                  with a copy of any notices regarding defaults or Events of Default
                  under
                  the operative documents to:

                 

                Attention: Office
                  of General Counsel

                Investment
                  Section, Room 1104

                Fax
                  #: (212) 576-8340

              
	
                (4) Address
                  for delivery of Notes:

                 

                New
                  York Life Investment Management LLC

                51
                  Madison Avenue

                New
                  York, New York 10010

                Attention:
                  Parkin Lee

              	 
	
                (5) E-mail
                  Address for Electronic Delivery:

                 

                FIIGLibrary@nylim.com

              	 
	
                (6) One
                  original closing volume and four conformed copies to:

                 

                New
                  York Life Investment Management LLC

                51
                  Madison Avenue, Room 1104

                New
                  York, New York 10010

                Attention:
                  Parkin Lee

              
	
                (7) Tax
                  ID No.: 13-5582869

              	 	 

      

       

      

       

      

      
        
          
            

            

            Schedule
              A

            CHIC_

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        B

       

      DEFINED
        TERMS

       

      As
        used
        herein, the following terms have the respective meanings set forth below
        or set
        forth in the Section hereof following such term: 

       

      “Accounts
        Securitization”
        means,
        with respect to the Company and its Subsidiaries (other than Superior Commerce),
        any pledge, sale, transfer, contribution, conveyance or other disposition
        of (i)
        accounts, chattel paper, instruments or general intangibles (each as defined
        in
        the UCC) arising in connection with the sale of goods or the rendering of
        services by such Person, including, without limitation, the related rights
        to
        any finance, interest, late payment charges or similar charges (such items,
        the
“Receivables”), (ii) such Person’s interest in the inventory or goods the sale
        of which by such Person gave rise to such Receivable (but only to the extent
        such inventory or goods consists of returned or repossessed inventory or
        goods,
        if any), (iii) all other guaranties, letters of credit, insurance and security
        interests or liens purporting to secure or support payment of such Receivable,
        (iv) all insurance contracts, service contracts, books and records associated
        with such Receivable, (v) any lockbox, post office box or similar deposit
        account related solely to the accounts being transferred, (vi) cash collections
        and cash proceeds of such Receivable and (vii) any proceeds of the foregoing
        (all such items referenced in clauses (i) through (vii), the “Transferred
        Assets”) which such sale, transfer, contribution, conveyance or other
        disposition is funded by the recipient of such Transferred Assets in whole
        or in
        part by borrowings or the issuance of instruments or securities that are
        paid
        principally from the cash derived from such Transferred Assets; provided
        that
        the aggregate amount of gross proceeds available to the Company or any
        Subsidiary in connection with all such transactions shall not at any time
        exceed
        the greater of $175,000,000 or 25% of Total Assets as of the most recently
        completed fiscal year of the Company and provided further that such sale,
        transfer, contribution, conveyance or other disposition and any Indebtedness
        arising from such sale, transfer, contribution, conveyance or other disposition
        shall be without recourse to the Company or any of its Subsidiaries (other
        than
        Superior Commerce) except with respect to (A) reductions in the balance of
        such Receivable as a result of any defective or rejected goods or set off
        by the
        obligor of such Receivable transferred by such Person, (B) breaches of
        representations or warranties by such Person in the Receivables Sale Agreement
        or any other receivables sale agreements that contain representations and
        warranties that are no broader in scope and obligation than the representations
        and warranties contained in the Receivables Sale Agreement and (C)
        indemnification of Superior Commerce to the extent provided in the Receivables
        Sale Agreement or any other receivables sale agreements which contain
        indemnification terms and provisions which are no broader in scope and
        obligation than the terms and provisions contained in the Receivables Sale
        Agreement.

       

      “Adjusted
        LIBOR Rate”
        is
        defined in Section 1.2(a).

       

      “Affiliate”
        means,
        at any time, and with respect to any Person, (a) any other Person that at
        such
        time directly or indirectly through one or more intermediaries Controls,
        or is
        Controlled by, or is under common Control with, such first Person, and (b)
        any
        Person beneficially owning or holding, directly or indirectly, 10% or more
        of
        any class of voting or equity interests of the Company or any Subsidiary
        or any
        corporation of which the Company and its Subsidiaries beneficially own or
        hold,
        in the aggregate, directly or indirectly, 10% or more of any class of voting
        or
        equity interests. As used in this definition, “Control” means the possession,
        directly or indirectly, of the power to direct or cause the direction of
        the
        management and policies of a Person, whether through the ownership of voting
        securities, by contract or otherwise. Unless the context otherwise clearly
        requires, any reference to an “Affiliate” is a reference to an Affiliate of the
        Company. Notwithstanding anything in the foregoing to the contrary, a Person
        that (i) would be an Affiliate of the Company solely by virtue of its ownership
        of voting or equity interests of the Company and (ii) is eligible pursuant
        to
        Rule 13d-1(b) under the Exchange Act to file a statement with the SEC on
        Schedule 13G, shall not be deemed to be an Affiliate.

       

      “Agreement
        Accounting Principles”
        means
        GAAP, provided that with respect to the calculations for purposes of determining
        compliance with the covenants set forth in Sections 10.1 through 10.5 and
        Section 10.7, such term means generally accepted accounting principles in
        effect
        as of the date of the Closing applied on a basis consistent with that used
        in
        the preparation of the most recent audited consolidated financial statements
        of
        the Company listed in Schedule 5.5.

       

      “Anti-Terrorism
        Order”
        means
        Executive Order 13224 of September 23, 2001, Blocking Property and
        Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or
        Support
        Terrorism (66 Fed. Reg. 49079 (2001)).

       

      “Attributable
        Indebtedness”
        means,
        on any date, (a) in respect of any Capital Lease of a Person, the capitalized
        amount thereof that would appear on a balance sheet of such Person prepared
        as
        of such date in accordance with Agreement Accounting Principles, and (b)
        in
        respect of any Synthetic Lease, the capitalized amount or principal amount
        of
        the remaining lease payments under the relevant lease that would appear on
        a
        balance sheet of such Person prepared as of such date in accordance with
        Agreement Accounting Principles if such lease were accounted for as a Capital
        Lease.

       

      “Average
        Accounts Securitization Proceeds”
        means,
        for any period, as determined on a consolidated basis in accordance with
        Agreement Accounting Principles, without duplication, for the Company and
        its
        Subsidiaries, the average for such period of the total amount of borrowings
        or
        issuances of instruments or securities in connection with any Accounts
        Securitization as of each calendar month end during such period.

       

      “Average
        Total Funded Indebtedness” means,
        for any period, as determined on a consolidated basis in accordance with
        Agreement Accounting Principles, without duplication, for the Company and
        its
        Subsidiaries, the average for such period of the Total Funded Indebtedness
        as of
        each calendar month end during such period

       

      “Business
        Day”
        means
        (a) for the purposes of Section 8.7 only, any day other than a Saturday,
        a
        Sunday or a day on which commercial banks in New York City are required or
        authorized to be closed, and (b) for the purposes of any other provision
        of this
        Agreement, any day other than a Saturday, a Sunday or a day on which commercial
        banks in New Orleans, Louisiana or New York City are required or authorized
        to
        be closed; provided that, if the applicable Business Day relates to the
        determination of LIBOR, a day on which dealings are also carried on in U.S.
        dollar deposits in the London interbank market.

       

      “Capital
        Lease”
        means,
        at any time, a lease with respect to which the lessee is required concurrently
        to recognize the acquisition of an asset and the incurrence of a liability
        in
        accordance with Agreement Accounting Principles.

       

      “Capital
        Stock”
        means
        (a) in the case of a corporation, capital stock, (b) in the case of a
        partnership, partnership interests (whether general or limited) (c) in the
        case
        of a limited liability company, membership interests and (d) any other interest
        or participation in a Person that confers on the holder the right to receive
        a
        share of the profits and losses of, or distributions of assets of, such
        Person.

       

      “Change
        of Control”
        means an
        event or series of events by which any “person” or “group” (within the meaning
        of Sections 13(d) and 14(d)(2) of the Exchange Act) becomes the “beneficial
        owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
        indirectly, of more than 50% of the voting power of the then outstanding
        Capital
        Stock of the Company entitled to vote generally in the election of the directors
        of the Company.

       

      “Closing”
        is
        defined in Section 3.

       

      “Code”
        means
        the Internal Revenue Code of 1986, as amended from time to time, and the
        rules
        and regulations promulgated thereunder from time to time.

       

      “Company”
        means
        Pool Corporation, a Delaware corporation.

       

      “Confidential
        Information”
        is
        defined in Section 20.

       

      “Control
        Event”
        means:

       

      (a)  the
        execution by the Company or any of its Subsidiaries or Affiliates of any
        agreement with respect to any proposed transaction or event or series of
        transactions or events that, individually or in the aggregate, may reasonably
        be
        expected to result in a Change of Control and that is publicly disclosed
        by the
        Company, by press release, filing with the SEC or otherwise, or 

       

      (b)  the
        execution of any written agreement that, when fully performed by the parties
        thereto, would result in a Change of Control.

       

      “Credit
        Agreement”
        means
        the Credit Agreement dated as of November 2, 2004 (as amended by a First
        Amendment dated as of May 9, 2005, a Second Amendment dated as of
        December 20, 2005 and a Third Amendment dated as of February 9, 2007)
        among the Company, SCP Distributors Inc. (a Subsidiary of the Company), the
        institutions from time to time parties thereto as Lenders, Wachovia Bank
        National Association, as Administrative Agent, Swingline Lender and Issuing
        Lender, Wachovia Capital Finance (Canada), as Canadian Dollar Lender, and
        JPMorgan Chase Bank, as Syndication Agent, Capital One, National Association
        (successor by merger to Hibernia National Bank), as Documentation Agent,
        and
        Wells Fargo Bank National Association, as Documentation Agent, as such agreement
        may be further amended, restated, supplemented, modified, refinanced, extended
        or replaced.

       

      “Default”
        means an
        event or condition the occurrence or existence of which would, with the lapse
        of
        time or the giving of notice or both, become an Event of Default. 

       

      “Default
        Rate”
        means
        that rate of interest that is the greater of (i) 2% per annum above the
        rate of interest stated in clause (a) of the first paragraph of the Notes
        or
        (ii) 2% over the rate of interest publicly announced by JPMorgan Chase
        Bank, N.A. as its “base” or “prime” rate.

       

      “Disclosure
        Documents”
        is
        defined in Section 5.3.

       

      “Disposition”
        is
        defined in Section 10.7.

       

      “Domestic
        Subsidiary”
        means
        any Subsidiary organized under the laws of any political subdivision of the
        United States.

       

      “EBITDA”
        means,
        for any period, the sum, determined on a consolidated basis in accordance
        with
        Agreement Accounting Principles, without duplication, for the Company and
        its
        Subsidiaries of: 

       

      (a)  Net
        Income for such period plus 

       

      (b)  to
        the
        extent deducted in determining Net Income: 

       

      (i)  income
        and franchise taxes, 

       

      (ii)  Interest
        Expense, 

       

      (iii)  amortization,
        

       

      (iv)  depreciation,
        

       

      (v)  non-cash
        stock option expense, and 

       

      (vi)  extraordinary
        losses incurred other than in the ordinary course of business, less

       

      (c)  any
        extraordinary gains realized other than in the ordinary course of
        business.

       

      If,
        during such period, the Company or any Subsidiary shall have acquired or
        disposed of any Person or acquired or disposed of all or substantially all
        of
        the operating assets of any Person, EBITDA for such period shall be calculated
        after giving pro forma effect thereto as if such transaction occurred on
        the
        first day of such period.

       

      “EBITDAR”
        means,
        for any period, the sum, determined on a consolidated basis in accordance
        with
        Agreement Accounting Principles, without duplication, for the Company and
        its
        Subsidiaries of:

       

      (a)  Net
        Income for such period plus 

       

      (b)  to
        the
        extent deducted in determining Net Income: 

       

      (i)  income
        and franchise taxes, 

       

      (ii)  Interest
        Expense, 

       

      (iii)  amortization,
        

       

      (iv)  depreciation,
        

       

      (v)  Rental
        Expense, 

       

      (vi)  non-cash
        stock option expense, and 

       

      (vii)  extraordinary
        losses incurred other than in the ordinary course of business, less

       

      (c)  any
        extraordinary gains realized other than in the ordinary course of
        business.

       

      “Electronic
        Delivery”
        is
        defined in Section 7.3.

       

      “Environmental
        Laws”
        means
        any and all federal, state, local, and foreign statutes, laws, regulations,
        ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
        franchises, licenses, agreements or governmental restrictions relating to
        pollution and the protection of the environment or the release of any materials
        into the environment, including but not limited to those related to Hazardous
        Materials.

       

      “ERISA”
        means
        the Employee Retirement Income Security Act of 1974, as amended from time
        to
        time, and the rules and regulations promulgated thereunder from time to time
        in
        effect. 

       

      “ERISA
        Affiliate”
        means
        any trade or business (whether or not incorporated) that is treated as a
        single
        employer together with the Company under section 414 of the Code. 

       

      “Event
        of Default”
        is
        defined in Section 11.

       

      “Exchange
        Act”
        means
        the Securities Exchange Act of 1934, as amended.

       

      “Fixed
        Charges”
        means
        for any period, the sum, determined on a consolidated basis in accordance
        with
        Agreement Accounting Principles, without duplication, for the Company and
        its
        Subsidiaries of Interest Expense paid or payable in cash for such period
        and
        Rental Expense for such period.

       

      “GAAP”
        means
        generally accepted accounting principles as in effect from time to time in
        the
        United States of America.

       

      “Governmental
        Authority”
        means

       

      (a)  the
        government of

       

      (i)  the
        United States of America or any state or other political subdivision thereof,
        or

       

      (ii)  any
        jurisdiction in which the Company or any Subsidiary conducts all or any part
        of
        its business, or which asserts jurisdiction over any properties of the Company
        or any Subsidiary, or

       

      (b)  any
        entity exercising executive, legislative, judicial, regulatory or administrative
        functions of, or pertaining to, any such government.

       

      “Guaranty
        Obligation”
        means,
        with respect to the Company and its Subsidiaries, without duplication, any
        obligation, contingent or otherwise, of any such Person pursuant to which such
        Person has directly or indirectly guaranteed any Indebtedness of any other
        Person and, without limiting the generality of the foregoing, any obligation,
        direct or indirect, contingent or otherwise, of any such Person (a) to purchase
        or pay (or advance or supply funds for the purchase or payment of) such
        Indebtedness (whether arising by virtue of partnership arrangements, by
        agreement to keep well, to purchase assets, goods, securities or services,
        to
        take-or-pay, or to maintain financial statement condition or otherwise) or
        (b)
        entered into for the purpose of assuring in any other manner the obligee
        of such
        Indebtedness of the payment thereof or to protect such obligee against loss
        in
        respect thereof (in whole or in part); provided, that the term Guaranty
        Obligation shall not include endorsements for collection or deposit in the
        ordinary course of business. 

       

      “Hazardous
        Material”
        means
        any and all pollutants, toxic or hazardous wastes or any other substances
        that
        might pose a hazard to health or safety, the removal of which may be required
        or
        the generation, manufacture, refining, production, processing, treatment,
        storage, handling, transportation, transfer, use, disposal, release, discharge,
        spillage, seepage, or filtration of which is or shall be restricted, prohibited
        or penalized by any applicable law, including asbestos, urea formaldehyde
        foam
        insulation, polychlorinated biphenyls, petroleum, petroleum products, lead
        based
        paint, radon gas or similar restricted, prohibited or penalized
        substances.

       

      “Hedging
        Agreement”
        means
        any agreement with respect to any Interest Rate Contract, forward rate
        agreement, commodity swap, forward foreign exchange agreement, currency swap
        agreement, cross-currency rate swap agreement, currency option agreement
        or
        other agreement or arrangement designed to alter the risks of any Person
        arising
        from fluctuations in interest rates, currency values or commodity prices,
        all as
        amended, restated, supplemented or otherwise modified from time to
        time.

       

      “holder”
        means,
        with respect to any Note, the Person in whose name such Note is registered
        in
        the register maintained by the Company pursuant to Section 13.1.

       

      “Indebtedness”
        means,
        with respect to the Company and its Subsidiaries at any date and without
        duplication, the sum of the following calculated in accordance with Agreement
        Accounting Principles: 

       

      (a)  all
        liabilities, obligations and indebtedness for borrowed money including, but
        not
        limited to, obligations evidenced by bonds, debentures, notes or other similar
        instruments of any such Person;

       

      (b)  all
        obligations to pay the deferred purchase price of property or services of
        any
        such Person (including, without limitation, all obligations under
        non-competition, earn-out or similar agreements), except trade payables arising
        in the ordinary course of business not more than 90 days past due;

       

      (c)  the
        Attributable Indebtedness of such Person with respect to such Person’s
        obligations in respect of Capital Leases and Synthetic Leases (regardless
        of
        whether accounted for as indebtedness under GAAP);

       

      (d)  all
        Indebtedness of any other Person secured by a Lien on any asset owned or
        being
        purchased by such Person (including indebtedness arising under conditional
        sales
        or other title retention agreements), whether or not such indebtedness shall
        have been assumed by such Person or is limited in recourse;

       

      (e)  all
        Guaranty Obligations of any such Person;

       

      (f)  all
        obligations, contingent or otherwise, of any such Person relative to the
        face
        amount of letters of credit, whether or not drawn, including, without
        limitation, any Reimbursement Obligation, and banker’s acceptances issued for
        the account of any such Person;

       

      (g)  all
        obligations of any such Person to redeem, repurchase, exchange, defease or
        otherwise make payments in respect of Capital Stock of such Person;

       

      (h)  all
        net
        obligations incurred by any such Person pursuant to Hedging Agreements;

       

      (i)  the
        outstanding attributed principal amount under any asset securitization program;
        and 

       

      (j)  all
        outstanding payment obligations with respect to Synthetic Leases. 

       

      For
        all
        purposes hereof, the Indebtedness of any Person shall include the Indebtedness
        of any partnership or joint venture (other than a joint venture that is itself
        a
        corporation or limited liability company) in which such Person is a general
        partner or a joint venturer, unless such Indebtedness is expressly made
        non-recourse to such Person. The amount of any net obligation under any Hedging
        Agreement on any date shall be deemed to be the Termination Value thereof
        as of
        such date.

       

      “INHAM
        Exemption”
        is
        defined in Section 6.2(e).

       

      “Institutional
        Investor”
        means
        (a) any original purchaser of a Note, (b) any holder of more than
        $2,000,000 in aggregate principal amount of the Notes at the time outstanding,
        (c) any bank, trust company, savings and loan association or other financial
        institution, any pension plan, any investment company, any insurance company,
        any broker or dealer, or any other similar financial institution or entity,
        regardless of legal form and (d) any Related Fund of any holder of any
        Note.

       

      “Interest
        Expense”
        means,
        with respect to the Company and its Subsidiaries for any period, the gross
        interest expense (including interest expense attributable to Capital Leases
        and
        all net payment obligations pursuant to Hedging Agreements) of the Company
        and
        its Subsidiaries, all determined for such period on a consolidated basis,
        without duplication, in accordance with Agreement Accounting Principles.
        

       

      “Interest
        Period”
        is
        defined in Section 1.2(c).

       

      “Interest
        Rate Contract”
        means
        any interest rate swap agreement, interest rate cap agreement, interest rate
        floor agreement, interest rate collar agreement, interest rate option or
        any
        other agreement regarding the hedging of interest rate risk exposure executed
        in
        connection with hedging the interest rate exposure of any Person and any
        confirming letter executed pursuant to such agreement, all as amended, restated,
        supplemented or otherwise modified from time to time.

       

      “LIBOR”
        is
        defined in Section 1.2(a).

       

      “LIBOR
        Breakage Amount”
        is
        defined in Section 8.7.

       

      “Lien”
        means,
        with respect to any asset, any mortgage, leasehold mortgage, lien, pledge,
        charge, security interest, hypothecation or encumbrance of any kind in respect
        of such asset. For the purposes of this Agreement, a Person shall be deemed
        to
        own subject to a Lien any asset that it has acquired or holds subject to
        the
        interest of a vendor or lessor under any conditional sale agreement, Capital
        Lease or other title retention agreement relating to such asset.

       

      “Material”
        means
        material in relation to the business, operations, affairs, financial condition,
        assets or properties of the Company and its Subsidiaries taken as a
        whole.

       

      “Material
        Adverse Effect”
        means a
        material adverse effect on (a) the business, operations, financial condition,
        assets or properties of the Company and its Subsidiaries taken as a whole,
        (b)
        the ability of the Company to perform its obligations under this Agreement
        and
        the Notes, (c) the ability of any Subsidiary Guarantor to perform its
        obligations under the Subsidiary Guaranty, or (d) the validity or enforceability
        of this Agreement, the Notes or the Subsidiary Guaranty.

       

      “Memorandum”
        is
        defined in Section 5.3.

       

      “Multiemployer
        Plan”
        means
        any Plan that is a “multiemployer plan” (as such term is defined in section
        4001(a)(3) of ERISA).

       

      “NAIC”
        means
        the National Association of Insurance Commissioners or any successor
        thereto.

       

      “NAIC
        Annual Statement”
        is
        defined in Section 6.2(a).

       

      “Net
        Income”
        means,
        with respect to the Company and its Subsidiaries, for any period of
        determination, the net income (or loss) of the Company and its Subsidiaries
        for
        such period, determined on a consolidated basis in accordance with Agreement
        Accounting Principles; provided that there shall be excluded from Net Income:
        

       

      (a)  the
        net
        income (or loss) of any Person (other than a Subsidiary which shall be subject
        to clause (c) below), in which the Company or any of its Subsidiaries has
        a
        joint interest with a third party, except to the extent such net income is
        actually paid to the Company or any of its Subsidiaries by dividend or other
        distribution during such period; 

       

      (b)  the
        net
        income (or loss) of any Person accrued prior to the date it becomes a Subsidiary
        of such Person or is merged into or consolidated with such Person or any
        of its
        Subsidiaries or that Person’s assets are acquired by such Person or any of its
        Subsidiaries except to the extent included pursuant to the foregoing clause
        (a);

       

      (c)  the
        net
        income (if positive) of any Subsidiary to the extent that the declaration
        or
        payment of dividends or similar distributions by such Subsidiary to the Company
        or any of its Subsidiaries of such net income, 

       

      (i)  is
        not at
        the time permitted by operation of the terms of its charter or any agreement,
        instrument, judgment, decree, order, statute rule or governmental regulation
        applicable to such Subsidiary or 

       

      (ii)  would
        be
        subject to any taxes payable on such dividends or distributions.

       

      “Net
        Worth”
        means,
        as of any date, the stockholders’ equity of the Company and its Subsidiaries,
        determined on a consolidated basis in accordance with Agreement Accounting
        Principles.

       

      “Notes”
        is
        defined in Section 1.1.

       

      “Officer’s
        Certificate”
        means a
        certificate of a Senior Financial Officer or of any other officer of the
        Company
        whose responsibilities extend to the subject matter of such
        certificate.

       

      “Operating
        Lease”
        means,
        as to any Person, any lease of property (whether real, personal or mixed)
        by
        such Person as lessee that is not a Capital Lease.

       

      “Other
        Purchasers”
        is
        defined in Section 2.

       

      “PBGC”
        means
        the Pension Benefit Guaranty Corporation referred to and defined in ERISA
        or any
        successor thereto.

       

      “Person”
        means an
        individual, partnership, corporation, limited liability company, association,
        trust, unincorporated organization, business entity or a government or agency
        or
        political subdivision thereof.

       

      “Plan”
        means an
“employee benefit plan” (as defined in section 3(3) of ERISA) that is or, within
        the preceding five years, has been established or maintained, or to which
        contributions are or, within the preceding five years, have been made or
        required to be made, by the Company or any ERISA Affiliate or with respect
        to
        which the Company or any ERISA Affiliate may have any liability.

       

      “Prepayment
        Premium”
        is
        defined in Section 8.2.

       

      “Priority
        Debt”
        means,
        as of any date, the sum (without duplication) of (a) Indebtedness of the
        Company and its Subsidiaries secured by Liens not otherwise permitted by
        Sections 10.4(a) through (i) and (b) outstanding unsecured Indebtedness of
        Subsidiaries not otherwise permitted by Sections 10.5(a) through (d).

       

      “property”
        or
“properties”
        means,
        unless otherwise specifically limited, real or personal property of any kind,
        tangible or intangible, choate or inchoate.

       

      “Proposed
        Payment Date”
        is
        defined in Section 8.3.

       

      “PTE”
        is
        defined in Section 6.2(a).

       

      “Purchaser”
        means
        each purchaser listed in Schedule A.

       

      “QPAM
        Exemption”
        is
        defined in Section 6.2(d).

       

      “Qualified
        Institutional Buyer”
        means
        any Person that is a “qualified institutional buyer” within the meaning of such
        term as set forth in Rule 144A(a)(1) under the Securities Act.

       

      “Receivables
        Sale Agreement”
        means
        that certain Receivables Sale Agreement dated as of March 27, 2003 by and
        among SCP Distributors LLC, SCP Services LP and Superior Pool Products LLC,
        as
        originators, and Superior Commerce, as buyer (as amended, restated, supplemented
        or otherwise modified).

       

      “Reimbursement
        Obligation”
        means
        the obligation of the Company to reimburse the issuing lender pursuant to
        the
        Credit Agreement for amounts drawn under letters of credit.

       

      “Related
        Fund”
        means,
        with respect to any holder of any Note, any fund or entity that (i) invests
        in
        Securities or bank loans, and (ii) is advised or managed by such holder,
        the
        same investment advisor as such holder or by an affiliate of such holder
        or such
        investment advisor.

       

      “Rental
        Expense”
        means,
        with respect to the Company and its Subsidiaries for any period, the aggregate
        fixed amounts payable with respect to Operating Leases of the Company and
        its
        Subsidiaries for such period, determined on a consolidated basis in accordance
        with Agreement Accounting Principles.

       

      “Required
        Holders”
        means,
        at any time, the holders of at least 51% in principal amount of the Notes
        at the
        time outstanding (exclusive of Notes then owned by the Company or any of
        its
        Affiliates).

       

      “Responsible
        Officer”
        means
        the chief executive officer, chief financial officer, principal accounting
        officer, controller, treasurer and General Counsel of the Company and any
        other
        officer of the Company with responsibility for the administration of the
        relevant portion of this Agreement.

       

      “SEC”
        means
        the Securities and Exchange Commission of the United States, or any successor
        thereto.

       

      “Securities
        Act”
        means
        the Securities Act of 1933, as amended from time to time, and the rules and
        regulations promulgated thereunder from time to time in effect.

       

      “Senior
        Financial Officer”
        means
        the chief financial officer, assistant treasurer, principal accounting officer,
        treasurer or controller of the Company. 

       

      “Source”
        is
        defined in Section 6.2.

       

      “Subsidiary”
        means as
        to any Person, any corporation, partnership, limited liability company or
        other
        entity of which more than 50% of the outstanding Capital Stock having ordinary
        voting power to elect a majority of the board of directors or other managers
        of
        such corporation, partnership, limited liability company or other entity
        is at
        the time owned by or the management is otherwise controlled, directly or
        indirectly, by such Person (irrespective of whether, at the time, Capital
        Stock
        of any other class or classes of such corporation, partnership, limited
        liability company or other entity shall have or might have voting power by
        reason of the happening of any contingency). Unless otherwise qualified,
        references to “Subsidiary” or “Subsidiaries” herein shall refer to those of the
        Company.

       

      “Subsidiary
        Guarantor”
        is
        defined in Section 1.3.

       

      “Subsidiary
        Guaranty”
        is
        defined in Section 1.3.

       

      “Superior
        Commerce”
        means
        Superior Commerce LLC, a Delaware limited liability company, and its successors
        and assigns.

       

      “SVO”
        means
        the Securities Valuation Office of the NAIC or any successor to such
        Office.

       

      “Synthetic
        Lease”
        means
        any synthetic lease, tax retention operating lease, off-balance sheet loan
        or
        similar off-balance sheet financing product where such transaction is considered
        borrowed money indebtedness for tax purposes but is classified as an Operating
        Lease in accordance with GAAP.

       

      “Termination
        Value”
        means,
        in respect of any one or more Hedging Agreements, after taking into account
        the
        effect of any legally enforceable netting agreement relating to such Hedging
        Agreements, (a) for any date on or after the date such Hedging Agreements
        have
        been closed out and termination value(s) determined in accordance therewith,
        such termination value(s), and (b) for any date prior to the date referenced
        in
        clause (a), the amount(s) determined as the mark-to-market value(s) for such
        Hedging Agreements, as determined based upon one or more mid-market or other
        readily available quotations provided by any recognized dealer in such Hedging
        Agreements.

       

      “this
        Agreement”
        or
“the
        Agreement”
        is
        defined in Section 17.3.

       

      “Total
        Assets”
        means,
        as of any date, the assets and properties of the Company and its Subsidiaries
        as
        of such date, determined on a consolidated basis in accordance with Agreement
        Accounting Principles.

       

      “Total
        Funded Indebtedness”
        means,
        with respect to the Company and its Subsidiaries at any date and without
        duplication, the sum of the following calculated in accordance with Agreement
        Accounting Principles: 

       

      (a)  all
        liabilities, obligations and indebtedness for borrowed money including, but
        not
        limited to, obligations evidenced by bonds, debentures, notes or other similar
        instruments of any such Person;

       

      (b)  all
        obligations to pay the deferred purchase price of property or services of
        any
        such Person (including, without limitation, all obligations under
        non-competition, earn-out or similar agreements), except trade payables arising
        in the ordinary course of business not more than ninety (90) days past
        due;

       

      (c)  the
        Attributable Indebtedness of such Person with respect to such Person’s
        obligations in respect of Capital Leases and Synthetic Leases (regardless
        of
        whether accounted for as indebtedness under GAAP);

       

      (d)  all
        Indebtedness of any other Person secured by a Lien on any asset owned or
        being
        purchased by such Person (including indebtedness arising under conditional
        sales
        or other title retention agreements), whether or not such indebtedness shall
        have been assumed by such Person or is limited in recourse;

       

      (e)  all
        obligations, contingent or otherwise, of any such Person relative to the
        face
        amount of letters of credit, whether or not drawn, including, without
        limitation, any Reimbursement Obligation, and banker’s acceptances issued for
        the account of any such Person; and 

       

      (f)  all
        Guaranty Obligations of any such Person with respect to outstanding Indebtedness
        of the types specified in clauses (a) through (e) above.

       

      For
        all
        purposes hereof, the Total Funded Indebtedness of any Person shall include
        the
        Indebtedness of any partnership or joint venture (other than a joint venture
        that is itself a corporation or limited liability company) in which such
        Person
        is a general partner or a joint venturer, unless such Indebtedness is expressly
        made non-recourse to such Person. 

       

      “USA
        Patriot Act”
        means
        United States Public Law 107-56, Uniting and Strengthening America by Providing
        Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT
        ACT)
        Act of 2001, as amended from time to time, and the rules and regulations
        promulgated thereunder from time to time in effect. 

       

      “Wholly
        Owned Subsidiary”
        means,
        at any time, any Subsidiary 100% of all of the Capital Stock (except directors’
qualifying shares) and voting interests of which are owned by any one or
        more of
        the Company and the Company’s other Wholly Owned Subsidiaries at such
        time.

       

      

      

      
        
          
            

            

            Schedule
              B

            CHIC_13

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        5.4

      

      SUBSIDIARIES
        AND OWNERSHIP OF SUBSIDIARY STOCK; AFFILIATES

      

      1.
        List
        of all Subsidiaries with jurisdiction of organization and percentage
        ownership:

      

      
        	
                NAME

              	
                JURISDICTION
                  OF ORGANIZATION

              	
                AUTHORIZED

              	
                ISSUED

              	
                OWNERSHIP
                  INTEREST

              
	
                 

                DOMESTIC
                  SUBSIDIARIES

              
	
                SCP
                  Distributors LLC

              	
                Delaware

              	
                1,000
                  Common 

                (0.01
                  par value)

              	
                1,000

              	
                Pool
                  Corporation 

                100%

              
	
                Superior
                  Pool Products, LLC

              	
                Delaware

              	
                1,000

              	
                1,000

              	
                SCP
                  Distributors LLC

                100%

              
	
                SCP
                  Acquisition Co. LLC

              	
                Delaware

              	
                1,000
                  Common

                (0.001
                  par value)

              	
                1,000

              	
                SCP
                  Distributors LLC

                100%

              
	
                SCP
                  International, Inc.

              	
                Delaware

              	
                1,000

              	
                1,000

              	
                SCP
                  Distributors LLC

                100%

              
	
                Superior
                  Commerce LLC

              	
                Delaware

              	
                1,000

              	
                1,000

              	
                SCP
                  Distributors LLC

                100%

              
	
                Alliance
                  Trading Inc.

              	
                Delaware

              	
                1,000

              	
                1,000

              	
                SCP
                  Distributors LLC

                100%

              
	
                Cypress,
                  Inc.

              	
                Nevada

              	
                1,000

              	
                1,000

              	
                SCP
                  Distributors LLC

                100%

              
	
                Splash
                  Holdings, Inc.

              	
                Indiana

              	
                1,000

              	
                1,000

              	
                SCP
                  Acquisition Co. LLC

                100%

              
	
                Pool
                  Development, LLC

              	
                Delaware

              	
                1,000

              	
                1,000

              	
                SCP
                  Distributors LLC

                100%

              
	
                Horizon
                  Distributors, Inc.

              	
                Delaware

              	
                1,000

              	
                1,000

              	
                SCP
                  Distributors LLC

                100%

              
	
                POOLCORP
                  Financial Mortgage LLC

              	
                Delaware

              	
                1,000

              	
                1,000

              	
                SCP
                  Distributors LLC

                100%

              
	
                 

                FOREIGN
                  SUBSIDIARIES

              
	
                SCP
                  Pool Holdings, BV

              	
                Netherlands

              	
                1,000

              	
                1,000

              	
                SCP
                  International, Inc.

                100%

              
	
                SCP
                  Pool, BV

              	
                Netherlands

              	
                1,000

              	
                1,000

              	
                SCP
                  Pool Holdings BV

                100%

              
	
                SCP
                  (UK) Holdings Limited

              	
                United
                  Kingdom

              	
                228

              	
                228

              	
                SCP
                  Pool BV

                100%

              
	
                SCP
                  (UK) Limited

              	
                United
                  Kingdom

              	
                90,000

              	
                90,000

              	
                SCP
                  (UK) Holdings Ltd

                100%

              
	
                Bonin
                  Consultores E Servicos, LDA

              	
                Portugal

              	
                5,000

              	
                5,000

              	
                SCP
                  Pool BV

                100%

              
	
                SCP
                  Pool Portugal LDA f/k/a Exporlinea LDA

              	
                Portugal

              	
                5,000

              	
                5,000

              	
                Bonin
                  Consultores E Servicos, LDA

                100%

              
	
                SCP
                  Europe f/k/a South Central Pools (France) S.A.S.

              	
                France

              	
                11,500

              	
                11,500

              	
                SCP
                  International, Inc.

                100%

              
	
                SCP
                  France SAS f/k/a 

                Jean
                  Albouy SA

              	
                France

              	
                305

              	
                305

              	
                SCP
                  Europe SAS

                100%

              
	
                SCP
                  Distributors Inc.

              	
                Ontario,
                  Canada

              	
                100

              	
                100

              	
                SCP
                  International, Inc.

              
	
                Windsor
                  International, Ltd.

              	
                Cayman
                  Islands

              	
                5,000

              	
                10

              	
                SCP
                  International, Inc.

                100%

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Cypress
                  Hong Kong, Ltd.

              	
                Hong
                  Kong

              	
                1,000

              	
                10

              	
                Windsor
                  International, Ltd. (9 shares ordinary)

                90%

              
	
                B.
                  & McK Custodians Limited

                 

                (1
                  share of ordinary)

                10%

              
	
                SCP
                  Mexico S.A. de C.V.

              	
                Mexico

              	
                1,000

              	
                1,000

              	
                SCP
                  International, Inc.

                100%

              
	
                SCP
                  Pool Distributors Spain, SL

              	
                Spain

              	
                3,006

              	
                3,006

              	
                SCP
                  (UK) Holdings Ltd.

                100%

              
	
                Sud
                  Ouest Filtration SAS

              	
                France

              	
                23,937

              	
                23,800

              	
                SCP
                  Europe SAS

                100%

              
	
                Les
                  Industries R.P., Inc.

              	
                Quebec,
                  Canada

              	
                59,426

              	
                59,426

              	
                SCP
                  Distributors, Inc.

                100%

              
	
                Norcal
                  Pool Supplies Ltd -
                  Dormant

              	
                United
                  Kingdom

              	
                450

              	
                450

              	
                SCP
                  (UK) Holdings Ltd

                100%

              
	
                Cascade
                  Swimming - Dormant

              	
                United
                  Kingdom

              	
                52,492

              	
                52,492

              	
                SCP
                  (UK) Holdings Ltd

                100%

              
	
                Swimming
                  Pool Warehouse, Ltd - Dormant

              	
                United
                  Kingdom

              	
                3,500

              	
                3,500

              	
                SCP
                  (UK) Holdings Ltd

                100%

              
	
                Garden
                  Leisure Products, Ltd - Dormant

              	
                United
                  Kingdom

              	
                10,000

              	
                10,000

              	
                SCP
                  (UK) Limited

                 

                100%

              
	
                Superior
                  Pool Products, Inc.

              	
                Ontario,
                  Canada

              	
                100

              	
                100

              	
                Les
                  Industries R.P., Inc.

                100%

              
	
                SCP
                  Italy, S.r.l.

              	
                Italy

              	
                1

              	
                1

              	
                SCP
                  France SAS

              
	
                Tor-Lyn
                  Ltd.

              	
                Ontario,
                  Canada

              	
                1,000

              	
                1,000

              	
                SCP
                  Distributors, Inc.

                100%

              

      

      

      2.
        List
        of all Affiliates:

      

      Latham
        International, Inc.

      Northpark
        Corporate Center, L.L.C.

      

      3.
        List
        of Directors and Senior Officers:

      

      
        	
                Name

              	
                Position

              
	
                Manuel
                  J. Perez de la Mesa

              	
                President,
                  Chief Executive Officer, Director

              
	
                A.
                  David Cook

              	
                Vice
                  President

              
	
                Mark
                  W. Joslin

              	
                Vice
                  President, Chief Financial Officer

              
	
                John
                  M. Murphy

              	
                Vice
                  President

              
	
                Stephen
                  C. Nelson

              	
                Vice
                  President

              
	
                Richard
                  P. Polizzotto

              	
                Vice
                  President

              
	
                Christopher
                  W. Wilson

              	
                Vice
                  President

              
	
                Craig
                  K. Hubbard

              	
                Treasurer,
                  Assistant Secretary

              
	
                Donald
                  L. Meyer

              	
                Corporate
                  Controller, Assistant Treasurer

              
	
                Jennifer
                  M. Neil

              	
                General
                  Counsel, Secretary

              
	
                Wilson
                  B. Sexton

              	
                Chairman
                  of the Board, Director

              
	
                Andrew
                  W. Code

              	
                Director

              
	
                James
                  J. Gaffney

              	
                Director

              
	
                George
                  T. Haymaker, Jr.

              	
                Director

              
	
                Harlan
                  F. Seymour

              	
                Director

              
	
                Robert
                  C. Sledd

              	
                Director

              
	
                John
                  E. Stokely

              	
                Director

              

      

      

      
        
          
            CHIC_13

            Schedule
              5.4

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        5.5

      

      FINANCIAL
        STATEMENTS

      

       

      POOL
        CORPORATION

      Consolidated
        Balance Sheet

      (Unaudited)

      September
        30, 2006

      (Dollars,
        in thousands except share data)

      

      
        	
                Assets

              	 
	
                Current
                  Assets

              	 
	 	
                Cash
                  and cash equivalents

              	
                40,874

              
	 	
                Receivables,
                  net

              	
                211,589

              
	 	
                Inventory,
                  net

              	
                283,930

              
	 	
                Prepaid
                  expenses

              	
                7,785

              
	 	
                Current
                  deferred income taxes

              	
                4,024

              
	
                Total
                  current assets

              	
                548,202

              
	 	 
	
                Property
                  and equipment, net

              	
                32,201

              
	
                Goodwill,
                  net

              	
                156,123

              
	
                Intangible
                  assets, net

              	
                19,964

              
	
                Equity
                  interest investments

              	
                32,383

              
	
                Other
                  assets, net

              	
                13,862

              
	
                Total
                  assets

              	
                802,735

              
	 	 
	 	 	 
	 	 	 
	
                Liabilities
                  and stockholders’ equity

              	 
	
                Current
                  liabilities

              	 
	 	
                Accounts
                  payable

              	
                111,349

              
	 	
                Accrued
                  and other current liabilities

              	
                118,892

              
	 	
                Short-term
                  financing

              	
                110,974

              
	 	
                Current
                  portion of long-term debt

              	
                3,731

              
	
                Total
                  current liabilities

              	
                344,946

              
	 	 	 
	
                Deferred
                  income taxes

              	
                12,760

              
	
                Long-term
                  debt

              	
                144,750

              
	
                Other
                  long-term liabilities

              	
                1,625

              
	
                Total
                  liabilities

              	
                504,081

              
	 	 	 
	
                Stockholders’
                  equity

              	 
	 	
                Common
                  stock, $.001 par value; 100,000,000 shares authorized, 50,906,356
                  shares
                  issued and outstanding

              	
                51

              
	 	
                Additional
                  paid-in capital

              	
                142,242

              
	 	
                Retained
                  earnings

              	
                209,046

              
	 	
                Dividends
                  declared

              	
                (44,302)

              
	 	
                Treasury
                  stock

              	
                (14,177)

              
	 	
                Unearned
                  compensation

              	
                0

              
	 	
                Accumulated
                  other comprehensive income

              	
                5,794

              
	
                Total
                  stockholders’ equity

              	
                298,654

              
	
                Total
                  liabilities and stockholders’ equity

              	
                802,735

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      POOL
        CORPORATION

      Consolidated
        Statements of Income

      (Unaudited)

      For
        the
        Period Ended: September 30, 2006

      (Dollars,
        in thousands)

      

      

      
        	 	 	
                2006

              	 	
                2005

              
	 	 	
                MTD

              	 	
                YTD

              	 	
                MTD

              	 	
                YTD

              
	
                Net
                  sales

              	
                144,684

              	 	
                1,591,276

              	 	
                117,901

              	 	
                1,252,868

              
	
                Cost
                  of sales

              	
                109,816

              	 	
                1,134,233

              	 	
                85,853

              	 	
                903,631

              
	 	
                Gross
                  profit

              	
                34,868

              	 	
                457,043

              	 	
                32,048

              	 	
                349,237

              
	 	
                Percent

              	
                24.1%

              	 	
                28.7%

              	 	
                27.2%

              	 	
                27.9%

              
	 	 	 	 	 	 	 	 	 
	
                Selling
                  and administrative expenses

              	
                28,570

              	 	
                285,591

              	 	
                23,869

              	 	
                216,161

              
	 	 	 	 	 	 	 	 	 
	
                Operating
                  income

              	
                6,298

              	 	
                171,452

              	 	
                8,179

              	 	
                133,076

              
	 	
                Percent

              	
                4.4%

              	 	
                10.8%

              	 	
                6.9%

              	 	
                10.6%

              
	 	 	 	 	 	 	 	 	 
	
                Interest
                  expense, net

              	
                1,362

              	 	
                10,983

              	 	
                380

              	 	
                4,316

              
	 	 	 	 	 	 	 	 	 
	
                Income
                  before income taxes

              	
                4,936

              	 	
                160,469

              	 	
                7,799

              	 	
                128,760

              
	
                Provision
                  for income taxes

              	
                1,906

              	 	
                61,957

              	 	
                3,014

              	 	
                49,800

              
	
                Equity
                  earnings/(losses) in unconsolidated interests, net

              	
                432

              	 	
                1,513

              	 	
                787

              	 	
                2,372

              
	
                Net
                  income

              	
                3,462

              	 	
                100,025

              	 	
                5,572

              	 	
                81,332

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      POOL
        CORPORATION

      Consolidated
        Statement of Cash Flows

      (Unaudited)

      For
        the
        Period Ended: September 30, 2006

      (Dollars,
        in thousands)

      

      
        	
                Operating
                  activities

              	 
	 	
                Net
                  Income

              	
                100,025

              
	 	
                Adjustments
                  to reconcile net income to net cash provided by operating
                  activities:

              	 
	 	 	
                Depreciation

              	
                5,980

              
	 	 	
                Amortization

              	
                3,472

              
	 	 	
                Stock-based
                  compensation

              	
                5,517

              
	 	 	
                Excess
                  tax benefits from stock-based compensation

              	
                (10,619)

              
	 	 	
                Provision
                  for doubtful accounts receivable, net of write-offs

              	
                855

              
	 	 	
                Provision
                  for inventory obsolescence, net of write-offs

              	
                1,033

              
	 	 	
                Provision
                  for deferred income taxes

              	
                (230)

              
	 	 	
                Loss/(gain)
                  on sale of property and equipment

              	
                (13)

              
	 	 	
                Equity
                  gains in unconsolidated investments

              	
                (2,476)

              
	 	 	
                Changes
                  in operating assets and liabilities, net of effects of acquisitions
                  and
                  divestitures

              	 
	 	 	 	
                Accounts
                  receivable

              	
                (61,121)

              
	 	 	 	
                Product
                  inventories

              	
                53,889

              
	 	 	 	
                Prepaid
                  expenses and other assets

              	
                (549)

              
	 	 	 	
                Accounts
                  payable

              	
                (71,359)

              
	 	 	 	
                Accrued
                  expenses and other current liabilities

              	
                57,074

              
	
                Net
                  cash provided by operations

              	
                81,478

              
	 	 	 	 	 
	
                Investing
                  activities

              	 
	
                Acquisition
                  of businesses, net of cash acquired

              	
                (26,662)

              
	
                Equity
                  interest investment

              	
                -

              
	
                Purchase
                  of property and equipment

              	
                (11,241)

              
	
                Proceeds
                  from the sale of property and equipment

              	
                95

              
	
                Net
                  cash used in investing activities

              	
                (37,808)

              
	 	 	 	 	 
	
                Financing
                  activities

              	 
	
                Proceeds
                  from revolving line of credit

              	
                311,838

              
	
                Payments
                  on revolving line of credit

              	
                (293,938)

              
	
                Proceeds
                  from short-term financing

              	
                93,347

              
	
                Payments
                  on short-term financing

              	
                (48,030)

              
	
                Proceeds
                  from other long-term debt

              	
                -

              
	
                Payments
                  on other long-term debt

              	
                (1,497)

              
	
                Payments
                  of capital lease obligations

              	
                (257)

              
	
                Payments
                  of deferred financing costs

              	
                (128)

              
	
                Excess
                  tax benefits from stock-based compensation

              	
                10,619

              
	
                Issuance
                  of common stock

              	
                6,335

              
	
                Payment
                  of cash dividends

              	
                (15,734)

              
	
                Purchase
                  of treasury stock

              	
                (93,495)

              
	
                Net
                  cash used in financing activities

              	
                (30,940)

              
	 	 	 	 	 
	
                Effect
                  of exchange rate changes on cash

              	
                1,278

              
	
                Change
                  in cash and cash equivalents

              	
                14,008

              
	
                Cash
                  and cash equivalents at beginning of period

              	
                28,866

              
	
                Cash
                  and cash equivalents at end of period

              	
                40,874

              

      

      

      
        
          
            CHIC_13

            Schedule
              5.5

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        5.14

      

      USE
        OF PROCEEDS

      

      As
        of 12/31/06 ($ in thousands)

      

      
        	 	 	
                Pro
                  Forma

                12/31/2006

              	
                Adjustment
                  for offering

              	
                Pro
                  forma after Adjustment 12/31/2006

              
	
                DEBT

              	 	 	 	 
	 	
                REVOLVING
                  CREDIT FACILITY

              	
                131,157

              	
                -100,000

              	
                31,157

              
	 	
                OTHER
                  DEBT

              	
                2,260

              	 	
                2,260

              
	 	
                TERM
                  LOAN

              	
                60,000

              	 	
                60,000

              
	 	
                RECEIVABLE
                  SECURITIZATION FACILITY

              	
                74,286

              	 	
                74,286

              
	 	
                SENIOR
                  NOTES

              	
                -

              	
                100,000

              	
                100,000

              
	 	 	 	 	 
	 	
                TOTAL
                  DEBT

              	
                267,703

              	 	
                267,703

              
	 	 	 	 	 

      

      

      
        
          
            CHIC_13

            Schedule
              5.14

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        5.15

      

      EXISTING
        INDEBTEDNESS

      

      As
        of 9/30/2006 (in thousands)

      

      
        	
                Obligor

              	
                Obligee

              	
                Principal
                  Amount 

                Outstanding

              	
                Collateral
                  or Guaranty

              
	 
	
                Pool
                  Corporation

                SCP
                  Distributors Inc

              	
                Wachovia
                  Bank National Association, as Administrative Agent, Wachovia Capital
                  Finance Corporation (Canada), as Canadian Dollar Lender, and JPMorgan
                  Chase Bank, as Syndication Agent, Capital One, National Association,
                  as
                  Documentation Agent, and Wells Fargo Bank National Association,
                  as
                  Documentation Agent and the Lenders party thereto, under the Credit
                  Agreement

              	
                147,450

              	
                 

                Guaranty
                  by:

                SCP
                  Distributors LLC

                Alliance
                  Trading, Inc.

                Cypress,
                  Inc.

                Superior
                  Pool Products LLC

                SCP
                  Acquisition Co. LLC,

                SCP
                  International, Inc.

                Pool
                  Development LLC

                Splash
                  Holdings, Inc.

                Horizon
                  Distributors, Inc.

                POOLCORP
                  Financial Mortgage, LLC

              
	
                Superior
                  Commerce LLC, (the “Seller”), SCP Distributors LLC, as
                  Servicer

              	
                 

                Jupiter
                  Securitization Corporation (“Conduit”) and JPMorgan Chase Bank, N.A. f/k/a
                  Bank One, NA (Main Office Chicago), individually (“JPMorgan Chase” and
                  together with Conduit, the “Purchasers”) and as agent for the Purchasers
                  (the “Agent”),

              	
                110,974

              	
                Superior
                  Commerce LLC

              
	
                Superior
                  Pool Products, LLC

              	
                 

                Non
                  Compete agreement related to Fort Wayne: Richard Garton, Jeffery
                  Bertsch,
                  Robin Bertsch, Randal Bertsch, Thomas Epple

              	
                771

              	
                obligor

              
	
                 

                Superior
                  Pool Products, LLC

              	
                Litehouse
                  Products, Inc.

              	
                899

              	
                obligor

              
	
                 

                Horizon
                  Distributors Inc.

              	
                Baytree
                  Leasing Company, LLC

              	
                132

              	
                obligor

              
	
                 

                SCP
                  Distributors LLC

              	
                IBM

              	
                495

              	
                SCP
                  Distributors LLC

              
	
                SCP
                  (UK) Limited

              	
                 

                Bank
                  Guarantee National Westminster Bank PCL in favor of Brixton
                  Limited

              	
                726

              	
                SCP
                  Distributors LLC

              

      

      

      

      
        
          
            CHIC_13

            Schedule
              5.15

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        10.4

      

      LIENS

      

      As
        of 12/31/06 (in thousands)

      

      
        	
                Obligor

              	
                Equipment

              	
                Creditor

              	
                Filing
                  Reference

              
	
                 

                Horizon
                  Distributors, Inc.

              	
                 

                Inventory
                  sold by the Secured Party to Debtor, provided however, in no event
                  shall
                  the “Collateral” include the Receivables or Related
                  Security

              	
                 

                GE
                  Commercial Distribution Finance Corporation

              	
                 

                Delaware

                Financing
                  Statement No. 53346237

              
	
                 

                Horizon
                  Distributors, Inc.

              	
                 

                Asset
                  Backed Security

              	
                 

                JP
                  Morgan Chase

              	
                 

                Delaware

                Financing
                  Statement No. 53381747

              
	
                 

                SCP
                  Distributors LLC

              	
                 

                Asset
                  Backed Security

              	
                 

                JP
                  Morgan Chase

              	
                 

                Delaware

                Financing
                  Statement No. 30992043

              
	
                 

                Superior
                  Pool Products LLC

              	
                 

                Asset
                  Backed Security

              	
                 

                JP
                  Morgan Chase 

              	
                 

                Delaware

                Financing
                  Statement No. 30831332

              
	
                 

                Pool
                  Corporation

              	
                 

                This
                  financing statement is filed for informational purposes only, as
                  the
                  Bailor owns the Property and it is not the intent of the Bailor
                  and
                  Bailees that the bailments noticed hereby are intended as
                  security.

              	
                 

                GPM
                  Acquisition LLC

              	
                 

                Delaware

                Financing
                  Statement No. 70340751

              
	
                 

                Superior
                  Commerce LLC

              	
                 

                Asset
                  Backed Security

              	
                 

                JP
                  Morgan Chase

              	
                 

                Delaware

                Financing
                  Statement No. 30831449

              
	
                 

                Superior
                  Commerce LLC

              	
                 

                Asset
                  Backed Security

              	
                 

                JP
                  Morgan Chase

              	
                 

                Delaware

                Financing
                  Statement No. 43123413

              
	
                 

                SCP
                  Distributors LLC

              	
                 

                Forklift

              	
                 

                Greater
                  Bay Bank

              	
                 

                Louisiana

                Financing
                  Statement No. 52-39120

              
	
                 

                SCP
                  Distributors LLC

              	
                 

                Equipment

              	
                 

                Yale
                  Financial Services

              	
                 

                Delaware

                Financing
                  Statement No. 21858848

              
	
                 

                SCP
                  Distributors LLC

              	
                 

                Equipment

              	
                 

                NMHG
                  Financial Services

              	
                 

                Delaware

                Financing
                  Statement No. 30270317

              
	
                 

                SCP
                  Distributors LLC

              	
                 

                Equipment

              	
                 

                Yale
                  Financial Services

              	
                 

                Delaware

                Financing
                  Statement No. 30673270

              
	
                 

                SCP
                  Distributors LLC

              	
                 

                Master
                  Agreement Lease

              	
                 

                IOS
                  Capital

              	
                 

                Delaware

                Financing
                  Statement Nos.

                41353707

                41353905

                41353939

                41805730

                41817941

                41921479

                41921537

                42217844

                42409383

                42409391

                42537241

                42544619

                42952374

                42990846

                43139401

                43144542

              
	
                 

                SCP
                  Distributors LLC

              	
                 

                Equipment
                  Lease

              	
                 

                NMHG
                  Financial Services

              	
                 

                Delaware

                Financing
                  Statement No. 52219252

              
	
                 

                SCP
                  Distributors LLC

              	
                 

                9
                  forklifts

                19
                  lift trucks

                3
                  easi reach trucks

              	
                 

                PHH
                  Arval

              	
                 

                Delaware

                Financing
                  Statement No. 63268885 as amended

              
	
                 

                SCP
                  Distributors LLC

              	
                 

                1
                  trucktainer lift system

              	
                 

                Chesapeake
                  Funding

              	
                 

                Delaware

                Financing
                  Statement No. 64381539

              
	
                 

                SCP
                  Distributors LLC

              	
                 

                Purchase
                  Money Security Interest in all equipment, software and other personal
                  property - Lease Agreement No. SFL-1032

              	
                 

                Leasenet
                  Group, LLC

              	
                 

                Delaware

                Financing
                  Statement No. 70071372

              
	
                 

                Superior
                  Pool Products LLC

              	
                 

                Raymond
                  Leasing

              	
                 

                Equipment

              	
                 

                Delaware

                Financing
                  Statement No. 62105583

              

      

      

      

      
        
          
            CHIC_13

            Schedule
              10.4

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        10.5

      

      SUBSIDIARY
        INDEBTEDNESS

      

      As
        of
        12/31/2006

      

      
        	
                 

                Subsidiary

              	
                Debt
                  Outstanding (in $U.S.)

              	
                 

                Payee

              	
                 

                Description
                  of Debt

              
	
                 

                SCP
                  (UK) Limited

              	
                 

                726,000

              	
                 

                National
                  Westminster Bank

              	
                 

                370,283.63
                  GBP Bank guarantee with National Westminster Bank PCL in favor
                  of Brixton
                  Limited

              
	
                 

                Superior
                  Pool Products, LLC

              	
                 

                990,000

              	
                 

                Litehouse
                  Products, Inc

              	
                 

                Non-compete
                  agreement

              
	
                 

                Superior
                  Pool Products, LLC

              	
                 

                771,000

              	
                 

                Non
                  Compete agreement related to Fort Wayne: Richard Garton, Jeffery
                  Bertsch,
                  Robin Bertsch, Randal Bertsch, Thomas Epple

              	
                 

                Non-compete
                  agreement

              
	
                 

                Superior
                  Commerce LLC, (the “Seller”), SCP Distributors LLC, as
                  Servicer

              	
                 

                Up
                  to the greater of 175,000,000 or 25% of Total Assets, of which
                  74,286,000
                  is outstanding

              	
                 

                Jupiter
                  Securitization Corporation (“Conduit”) and JPMorgan Chase Bank, N.A. f/k/a
                  Bank One, NA (Main Office Chicago), individually (“JPMorgan Chase” and
                  together with Conduit, the “Purchasers”) and as agent for the Purchasers
                  (the “Agent”),

              	
                 

                Assets
                  securitization program

              
	
                 

                SCP
                  Distributors Inc

              	
                 

                Can
                  borrow up to 5,000,000, of which 257,000 is outstanding

              	
                 

                Wachovia
                  Bank National Association, as Administrative Agent, Wachovia Capital
                  Finance Corporation (Canada), as Canadian Dollar Lender, and JPMorgan
                  Chase Bank, as Syndication Agent, Capital One, National Association,
                  as
                  Documentation Agent, and Wells Fargo Bank National Association,
                  as
                  Documentation Agent and the Lenders party thereto

              	
                 

                Canadian
                  portion of the Credit Agreement

              

      

      

      
        
          
            CHIC_13

            Schedule
              10.5

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        1.1

       

      [FORM
        OF SENIOR NOTE]

       

      

      POOL
        CORPORATION

      

      Floating
        Rate Senior Note due February 12, 2012

      

      
        	
                No.
                  R-[_____]

              	
                [Date]

              
	
                $[_______]

              	
                PPN:
                  73278LA*6

              

      

      

      FOR
        VALUE
        RECEIVED, the undersigned, POOL CORPORATION (herein called the “Company”), a
        corporation organized and existing under the laws of the State of Delaware,
        promises to pay to [         ], or
        registered assigns, the principal sum of
        $[              ]
        on February 12, 2012, with interest (computed on the basis of a 360-day
        year and the actual number of days elapsed) (a) on the unpaid principal thereof
        at a floating rate equal to the Adjusted LIBOR Rate from time to time, payable
        quarterly on each February 12, May 12, August 12 and November 12, commencing
        with the February 12, May 12, August 12 or November 12 next succeeding the
        date
        hereof, until the principal shall have become due and payable, and (b) to
        the
        extent permitted by law on any overdue payment (including any overdue
        prepayment) of principal, any overdue payment of interest and any LIBOR Breakage
        Amount at the Default Rate (as defined in the Note Purchase Agreement referred
        to below) until paid.

       

      Payments
        of principal of, interest on and any Prepayment Premium or LIBOR Breakage
        Amount
        with respect to this Note are to be made in lawful money of the United States
        of
        America at the principal office of JPMorgan Chase Bank, N.A. in New York,
        New
        York or at such other place as the Company shall have designated by written
        notice to the holder of this Note as provided in the Note Purchase Agreement
        referred to below.

       

      This
        Note
        is one of a series of Senior Notes (herein called the “Notes”) issued pursuant
        to a Note Purchase Agreement dated as of February 1, 2007 (as from time to
        time amended, the “Note Purchase Agreement”), between the Company and the
        respective Purchasers named therein and is entitled to the benefits thereof.
        Each holder of this Note will be deemed, by its acceptance hereof, (i) to
        have
        agreed to the confidentiality provisions set forth in Section 20 of the Note
        Purchase Agreement and (ii) to have made the representation set forth in
        Section
        6.2 of the Note Purchase Agreement. Unless otherwise indicated, capitalized
        terms used in this Note shall have the respective meanings ascribed to such
        terms in the Note Purchase Agreement.

       

      This
        Note
        is a registered Note and, as provided in the Note Purchase Agreement, upon
        surrender of this Note for registration of transfer, duly endorsed, or
        accompanied by a written instrument of transfer duly executed, by the registered
        holder hereof or such holder’s attorney duly authorized in writing, a new Note
        for the unpaid principal amount will be issued to, and registered in the
        name
        of, the transferee. Prior to due presentment for registration of transfer,
        the
        Company may treat the person in whose name this Note is registered as the
        owner
        hereof for the purpose of receiving payment and for all other purposes, and
        the
        Company will not be affected by any notice to the contrary.

       

      This
        Note
        is subject to optional prepayment, in whole or from time to time in part,
        at the
        times and on the terms specified in the Note Purchase Agreement, but not
        otherwise.

       

      If
        an
        Event of Default occurs and is continuing, the principal of this Note may
        be
        declared or otherwise become due and payable in the manner, at the price
        (including any applicable Prepayment Premium and LIBOR Breakage Amount) and
        with
        the effect and to the extent provided in the Note Purchase
        Agreement.

       

      Payment
        of the principal of, and interest and prepayment premium, if any, and LIBOR
        Breakage Amount, if any, on this Note, and all other amounts due under the
        Note
        Purchase Agreement, is guarantied pursuant to the terms of a Guaranty dated
        as
        of February 1, 2007 of certain Subsidiaries of the Company.1 

       

      This
        Note
        shall be construed and enforced in accordance with, and the rights of the
        parties shall be governed by, the law of the State of New York excluding
        choice-of-law principles of the law of such State that would require the
        application of the laws of a jurisdiction other than such State.

       

      

      POOL
        CORPORATION

      

      

      

      By:       

      Name:
        

      Title:
        

      

      

        

        
          1  This
            paragraph must be removed at such time as there are no Subsidiary
            Guarantors.

           

        

      

      
        
          
            

            

            Exhibit
              1.1

            CHIC_

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        1.3

       

      [FORM
        OF SUBSIDIARY GUARANTY]

       

      THIS
        GUARANTY (this “Guaranty”) dated as of February 1, 2007 is made by the
        undersigned (each, a “Guarantor”), in favor of the holders from time to time of
        the Notes hereinafter referred to, including each purchaser named in the
        Note
        Purchase Agreement hereinafter referred to, and their respective successors
        and
        assigns (collectively, the “Holders” and each individually, a
“Holder”).

       

      W
        I T
        N E S S E T H:

      

      WHEREAS,
        Pool Corporation, a Delaware corporation (the “Company”), and the initial
        Holders have entered into a Note Purchase Agreement dated as of February 1,
        2007 (the Note Purchase Agreement as amended, restated or otherwise modified
        from time to time in accordance with its terms and in effect, the “Note Purchase
        Agreement”); 

       

      WHEREAS,
        the Note Purchase Agreement provides for the issuance by the Company of
        $100,000,000 aggregate principal amount of Notes (as defined in the Note
        Purchase Agreement);

       

      WHEREAS,
        the Company directly or indirectly owns all or a substantial portion of the
        issued and outstanding capital stock of each Guarantor and, by virtue of
        such
        ownership and otherwise, each Guarantor will derive substantial benefits
        from
        the purchase by the Holders of the Company’s Notes; 

       

      WHEREAS,
        it is a condition precedent to the obligation of the Holders to purchase
        the
        Notes that each Guarantor shall have executed and delivered this Guaranty
        to the
        Holders; and

       

      WHEREAS,
        each Guarantor desires to execute and deliver this Guaranty to satisfy the
        conditions described in the preceding paragraph; 

       

      NOW,
        THEREFORE, in consideration of the premises and other benefits to each
        Guarantor, and of the purchase of the Company’s Notes by the Holders, and for
        other good and valuable consideration, the receipt and sufficiency of which
        are
        acknowledged, each Guarantor makes this Guaranty as follows:

       

      SECTION
        1.  Definitions.
        Any
        capitalized terms not otherwise herein defined shall have the meanings
        attributed to them in the Note Purchase Agreement.

       

      SECTION
        2.  Guaranty.
        Each
        Guarantor, jointly and severally with each other Guarantor, unconditionally
        and
        irrevocably guarantees to the Holders the due, prompt and complete payment
        by
        the Company of the principal of, make-whole amount, if any, prepayment premium,
        if any, breakage amount, if any, and interest on, and each other amount due
        under, the Notes or the Note Purchase Agreement, when and as the same shall
        become due and payable (whether at stated maturity or by required or optional
        prepayment or by acceleration or otherwise) in accordance with the terms
        of the
        Notes and the Note Purchase Agreement (the Notes and the Note Purchase Agreement
        being sometimes hereinafter collectively referred to as the “Note Documents” and
        the amounts payable by the Company under the Note Documents, and all other
        monetary obligations of the Company thereunder (including any attorneys’ fees
        and expenses), being sometimes collectively hereinafter referred to as the
        “Obligations”). This Guaranty is a guaranty of payment and not just of
        collectibility and is in no way conditioned or contingent upon any attempt
        to
        collect from the Company or upon any other event, contingency or circumstance
        whatsoever. If for any reason whatsoever the Company shall fail or be unable
        duly, punctually and fully to pay such amounts as and when the same shall
        become
        due and payable, each Guarantor, without demand, presentment, protest or
        notice
        of any kind, will forthwith pay or cause to be paid such amounts to the Holders
        under the terms of such Note Documents, in lawful money of the United States,
        at
        the place specified in the Note Purchase Agreement, or perform or comply
        with
        the same or cause the same to be performed or complied with, together with
        interest (to the extent provided for under such Note Documents) on any amount
        due and owing from the Company. Each Guarantor, promptly after demand, will
        pay
        to the Holders the reasonable costs and expenses of collecting such amounts
        or
        otherwise enforcing this Guaranty, including, without limitation, the reasonable
        fees and expenses of counsel. Notwithstanding the foregoing, the right of
        recovery against each Guarantor under this Guaranty is limited to the extent
        it
        is judicially determined with respect to any Guarantor that entering into
        this
        Guaranty would violate Section 548 of the United States Bankruptcy Code or
        any
        comparable provisions of any state law, in which case such Guarantor shall
        be
        liable under this Guaranty only for amounts aggregating up to the largest
        amount
        that would not render such Guarantor’s obligations hereunder subject to
        avoidance under Section 548 of the United States Bankruptcy Code or any
        comparable provisions of any state law.

       

      SECTION
        3.  Guarantor’s
        Obligations Unconditional.
        The
        obligations of each Guarantor under this Guaranty shall be primary, absolute
        and
        unconditional obligations of each Guarantor, shall not be subject to any
        counterclaim, set-off, deduction, diminution, abatement, recoupment, suspension,
        deferment, reduction or defense based upon any claim each Guarantor or any
        other
        person may have against the Company or any other person, and to the full
        extent
        permitted by applicable law shall remain in full force and effect without
        regard
        to, and shall not be released, discharged or in any way affected by, any
        circumstance or condition whatsoever (whether or not each Guarantor or the
        Company shall have any knowledge or notice thereof), including:

       

      (a)  any
        termination, amendment or modification of or deletion from or addition or
        supplement to or other change in any of the Note Documents or any other
        instrument or agreement applicable to any of the parties to any of the Note
        Documents;

       

      (b)  any
        furnishing or acceptance of any security, or any release of any security,
        for
        the Obligations, or the failure of any security or the failure of any person
        to
        perfect any interest in any collateral;

       

      (c)  any
        failure, omission or delay on the part of the Company to conform or comply
        with
        any term of any of the Note Documents or any other instrument or agreement
        referred to in paragraph (a) above, including, without limitation, failure
        to
        give notice to any Guarantor of the occurrence of a “Default” or an “Event of
        Default” under any Note Document;

       

      (d)  any
        waiver of the payment, performance or observance of any of the obligations,
        conditions, covenants or agreements contained in any Note Document, or any
        other
        waiver, consent, extension, indulgence, compromise, settlement, release or
        other
        action or inaction under or in respect of any of the Note Documents or any
        other
        instrument or agreement referred to in paragraph (a) above or any obligation
        or
        liability of the Company, or any exercise or non-exercise of any right, remedy,
        power or privilege under or in respect of any such instrument or agreement
        or
        any such obligation or liability;

       

      (e)  any
        failure, omission or delay on the part of any of the Holders to enforce,
        assert
        or exercise any right, power or remedy conferred on such Holder in this
        Guaranty, or any such failure, omission or delay on the part of such Holder
        in
        connection with any Note Document, or any other action on the part of such
        Holder;

       

      (f)  any
        voluntary or involuntary bankruptcy, insolvency, reorganization, arrangement,
        readjustment, assignment for the benefit of creditors, composition,
        receivership, conservatorship, custodianship, liquidation, marshaling of
        assets
        and liabilities or similar proceedings with respect to the Company, any
        Guarantor or to any other person or any of their respective properties or
        creditors, or any action taken by any trustee or receiver or by any court
        in any
        such proceeding;

       

      (g)  any
        discharge, termination, cancellation, frustration, irregularity, invalidity
        or
        unenforceability, in whole or in part, of any of the Note Documents or any
        other
        agreement or instrument referred to in paragraph (a) above or any term
        hereof;

       

      (h)  any
        merger or consolidation of the Company or any Guarantor into or with any
        other
        corporation, or any sale, lease or transfer of any of the assets of the Company
        or any Guarantor to any other person;

       

      (i)  any
        change in the ownership of any shares of capital stock of the Company or
        any
        change in the corporate relationship between the Company and any Guarantor,
        or
        any termination of such relationship;

       

      (j)  any
        release or discharge, by operation of law, of any Guarantor from the performance
        or observance of any obligation, covenant or agreement contained in this
        Guaranty; or 

       

      (k)  any
        other
        occurrence, circumstance, happening or event whatsoever, whether similar
        or
        dissimilar to the foregoing, whether foreseen or unforeseen, and any other
        circumstance which might otherwise constitute a legal or equitable defense
        or
        discharge of the liabilities of a guarantor or surety or which might otherwise
        limit recourse against any Guarantor.

       

      SECTION
        4.  Full
        Recourse Obligations.
        The
        obligations of each Guarantor set forth herein constitute the full recourse
        obligations of such Guarantor enforceable against it to the full extent of
        all
        its assets and properties.

       

      SECTION
        5.  Waiver.
        Each
        Guarantor unconditionally waives, to the extent permitted by applicable law,
        (a) notice of any of the matters referred to in Section 3, (b) notice
        to such Guarantor of the incurrence of any of the Obligations, notice to
        such
        Guarantor or the Company of any breach or default by such Guarantor or the
        Company with respect to any of the Obligations or any other notice that may
        be
        required, by statute, rule of law or otherwise, to preserve any rights of
        the
        Holders against such Guarantor, (c) presentment to or demand of payment
        from the Company or the Guarantor with respect to any amount due under any
        Note
        Document or protest for nonpayment or dishonor, (d) any right to the
        enforcement, assertion or exercise by any of the Holders of any right, power,
        privilege or remedy conferred in the Note Purchase Agreement or any other
        Note
        Document or otherwise, (e) any requirement of diligence on the part of any
        of the Holders, (f) any requirement to exhaust any remedies or to mitigate
        the damages resulting from any default under any Note Document, (g) any
        notice of any sale, transfer or other disposition by any of the Holders of
        any
        right, title to or interest in the Note Purchase Agreement or in any other
        Note
        Document and (h) any other circumstance whatsoever which might otherwise
        constitute a legal or equitable discharge, release (other than a release
        of such
        Guarantor herefrom pursuant to Section 9.7(b) of the Note Purchase Agreement)
        or
        defense of a guarantor or surety (other than the defense of payment) or which
        might otherwise limit recourse against such Guarantor.

       

      SECTION
        6.  Subrogation,
        Contribution, Reimbursement or Indemnity.
        Until
        all Obligations have been indefeasibly paid in full, each Guarantor agrees
        not
        to take any action pursuant to any rights which may have arisen in connection
        with this Guaranty to be subrogated to any of the rights (whether contractual,
        under the United States Bankruptcy Code, as amended, including Section 509
        thereof, under common law or otherwise) of any of the Holders against the
        Company or against any collateral security or guaranty or right of offset
        held
        by the Holders for the payment of the Obligations. Until all Obligations
        have
        been indefeasibly paid in full, each Guarantor agrees not to take any action
        pursuant to any contractual, common law, statutory or other rights of
        reimbursement, contribution, exoneration or indemnity (or any similar right)
        from or against the Company which may have arisen in connection with this
        Guaranty. So long as any Obligations remain outstanding, if any amount shall
        be
        paid by or on behalf of the Company to any Guarantor on account of any of
        the
        rights waived in this Section 6, such amount shall be held by such Guarantor
        in
        trust, segregated from other funds of such Guarantor, and shall, forthwith
        upon
        receipt by such Guarantor, be turned over to the Holders (duly endorsed by
        such
        Guarantor to the Holders, if required), to be applied against the Obligations,
        whether matured or unmatured, in such order as the Holders may determine.
        The
        provisions of this Section 6 shall survive the term of this Guaranty and
        the
        payment in full of the Obligations.

       

      SECTION
        7.  Effect
        of Bankruptcy Proceedings, etc.
        This
        Guaranty shall continue to be effective or be automatically reinstated, as
        the
        case may be, if at any time payment, in whole or in part, of any of the sums
        due
        to any of the Holders pursuant to the terms of the Note Purchase Agreement
        or
        any other Note Document is rescinded or must otherwise be restored or returned
        by such Holder upon the insolvency, bankruptcy, dissolution, liquidation
        or
        reorganization of the Company or any other person, or upon or as a result
        of the
        appointment of a custodian, receiver, trustee or other officer with similar
        powers with respect to the Company or other person or any substantial part
        of
        its property, or otherwise, all as though such payment had not been made.
        If an
        event permitting the acceleration of the maturity of the principal amount
        of the
        Notes shall at any time have occurred and be continuing, and such acceleration
        shall at such time be prevented by reason of the pendency against the Company
        or
        any other person of a case or proceeding under a bankruptcy or insolvency
        law,
        each Guarantor agrees that, for purposes of this Guaranty and its obligations
        hereunder, the maturity of the principal amount of the Notes and all other
        Obligations shall be deemed to have been accelerated with the same effect
        as if
        any Holder had accelerated the same in accordance with the terms of the Note
        Purchase Agreement or other applicable Note Document, and such Guarantor
        shall
        forthwith pay such principal amount, LIBOR Breakage Amount, if any, and interest
        thereon and any other amounts guaranteed hereunder without further notice
        or
        demand.

       

      SECTION
        8.  Term
        of Agreement.
        This
        Guaranty and all guaranties, covenants and agreements of each Guarantor
        contained herein shall continue in full force and effect and shall not be
        discharged until such time as all of the Obligations shall be paid and performed
        in full and all of the agreements of such Guarantor hereunder shall be duly
        paid
        and performed in full; provided that each Guarantor shall be automatically
        and
        immediately released herefrom without any further act by any Person as provided
        in Section 9.7(b) of the Note Purchase Agreement.

       

      SECTION
        9.  Representations
        and Warranties.
        Each
        Guarantor represents and warrants to each Holder that:

       

      (a)  such
        Guarantor is duly organized, validly existing and in good standing under
        the
        laws of its jurisdiction of organization and has the requisite power and
        authority to own and operate its property, to lease the property it operates
        as
        lessee and to conduct the business in which it is currently
        engaged;

       

      (b)  such
        Guarantor has the requisite power and authority and the legal right to execute
        and deliver, and to perform its obligations under, this Guaranty, and has
        taken
        all necessary action to authorize its execution, delivery and performance
        of
        this Guaranty;

       

      (c)  this
        Guaranty constitutes a legal, valid and binding obligation of such Guarantor
        enforceable in accordance with its terms, except as enforceability may be
        limited by bankruptcy, insolvency, reorganization, moratorium or similar
        laws
        affecting the enforcement of creditors’ rights generally and by general
        equitable principles (regardless of whether such enforceability is considered
        in
        a proceeding in equity or at law);

       

      (d)  the
        execution, delivery and performance of this Guaranty will not
        (i) contravene, result in any breach of, or constitute a default under, or
        result in the creation of any Lien in respect of any property of such Guarantor
        under any indenture, mortgage, deed of trust, loan, credit agreement, corporate
        charter or by-laws, or any other agreement evidencing Debt, (ii) contravene,
        result in any breach of, or constitute a default under, or result in the
        creation of any Lien in respect of any property of such Guarantor under,
        any
        other agreement or instrument to which such Guarantor is bound or by which
        such
        Guarantor or any of its properties may be bound or affected, except as could
        not
        reasonably be expected to have a Material Adverse Effect, (iii) conflict
        with or
        result in a breach of any of the terms, conditions or provisions of any order,
        judgment, decree, or ruling of any court, arbitrator or Governmental Authority
        applicable to such Guarantor, except as could not reasonably be expected
        to have
        a Material Adverse Effect, or (iv) violate any provision of any statute or
        other rule or regulation of any Governmental Authority applicable to such
        Guarantor, except as could not reasonably be expected to have a Material
        Adverse
        Effect;

       

      (e)  no
        consent, approval or authorization of, or registration, filing or declaration
        with, any Governmental Authority is required in connection with the execution,
        delivery or performance by such Guarantor of this Guaranty; 

       

      (f)  except
        as
        disclosed in Section 5.8 of the Note Purchase Agreement, no litigation,
        investigation or proceeding of or before any arbitrator or governmental
        authority is pending or, to the knowledge of such Guarantor, threatened by
        or
        against such Guarantor or any of its properties or revenues (i) with
        respect to this Guaranty or any of the transactions contemplated hereby or
        (ii) that could reasonably be expected to have a material adverse effect
        upon the business, operations or financial condition of such Guarantor and
        its
        Subsidiaries taken as a whole;

       

      (g)  such
        Guarantor (after giving due consideration to any rights of contribution)
        has
        received fair consideration and reasonably equivalent value for the incurrence
        of its obligations hereunder or as contemplated hereby and after giving effect
        to the transactions contemplated herein, (i) the fair value of the assets
        of such Guarantor (both at fair valuation and at present fair saleable value)
        exceeds its liabilities, (ii) such Guarantor is able to and expects to be
        able
        to pay its debts as they mature, and (iii) such Guarantor has capital
        sufficient to carry on its business as conducted and as proposed to be
        conducted.

       

      SECTION
        10.  Notices.
        All
        notices and
        communications provided for hereunder
        shall be
        in writing
        and
sent
        (a) by facsimile if the sender on the same day sends a confirming copy of
        such notice by a recognized overnight delivery service (charges prepaid),
        (b) by
        registered or certified mail
        with
        return
        receipt requested
        (postage
        prepaid), or (c) by a recognized overnight delivery service (with charges
        prepaid),
        addressed (a) if to the Company
        or any
        Holder at the address or
        telecopy number set
        forth
        in the
        Note
        Purchase Agreement or (b) if to a Guarantor, in care of the Company at the
        Company’s address or
        telecopy number set
        forth
        in the Note Purchase Agreement, or in each case at such other
        address
        or
        telecopy number
        as the
        Company, any Holder or such Guarantor shall from time to time designate in
        writing to the other parties. Any notice so addressed shall be deemed to
        be
        given when actually received.

       

      SECTION
        11.  Survival.
        All
        warranties, representations and covenants made by each Guarantor herein or
        in
        any certificate or other instrument delivered by it or on its behalf hereunder
        shall be considered to have been relied upon by the Holders and shall survive
        the execution and delivery of this Guaranty, regardless of any investigation
        made by any of the Holders. All statements in any such certificate or other
        instrument shall constitute warranties and representations by such Guarantor
        hereunder.

       

      SECTION
        12.  Jurisdiction
        and Process; Waiver of Jury Trial. 

       

      (a)  Each
        Guarantor irrevocably submits to the non exclusive jurisdiction of any New
        York
        State or federal court sitting in the Borough of Manhattan, The City of New
        York, over any suit, action or proceeding arising out of or relating solely
        to
        this Agreement or the Notes. To the fullest extent permitted by applicable
        law,
        each Guarantor irrevocably waives and agrees not to assert, by way of motion,
        as
        a defense or otherwise, any claim that it is not subject to the jurisdiction
        of
        any such court, any objection that it may now or hereafter have to the laying
        of
        the venue of any such suit, action or proceeding brought in any such court
        and
        any claim that any such suit, action or proceeding brought in any such court
        has
        been brought in an inconvenient forum.

       

      (b)  Each
        Guarantor consents to process being served in any suit, action or proceeding
        solely of the nature referred to in Section 12(a) by mailing a copy thereof
        by
        registered or certified or priority mail, postage prepaid, return receipt
        requested, or delivering a copy thereof in the manner for delivery of notices
        specified in Section 10, to it. Each Guarantor agrees that such service upon
        receipt (i) shall be deemed in every respect effective service of process
        upon
        it in any such suit, action or proceeding and (ii) shall, to the fullest
        extent
        permitted by applicable law, be taken and held to be valid personal service
        upon
        and personal delivery to it. Notices hereunder shall be conclusively presumed
        received as evidenced by a delivery receipt furnished by the United States
        Postal Service or any reputable commercial delivery service.

       

      (c)  Nothing
        in this Section 12 shall affect the right of any holder of a Note to serve
        process in any manner permitted by law, or limit any right that the holders
        of
        any of the Notes may have to bring proceedings against any Guarantor in the
        courts of any appropriate jurisdiction or to enforce in any lawful manner
        a
        judgment obtained in one jurisdiction in any other jurisdiction.

       

      (d)  EACH
        GUARANTOR WAIVES TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO
        THIS
        AGREEMENT, THE NOTES OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH
        OR
        THEREWITH.

       

      SECTION
        13.  Miscellaneous.
        Any
        provision of this Guaranty which is prohibited or unenforceable in any
        jurisdiction shall, as to such jurisdiction, be ineffective to the extent
        of
        such prohibition or unenforceability without invalidating the remaining
        provisions hereof, and any such prohibition or unenforceability in any
        jurisdiction shall not invalidate or render unenforceable such provision
        in any
        other jurisdiction. To the extent permitted by applicable law, each Guarantor
        hereby waives any provision of law that renders any provisions hereof prohibited
        or unenforceable in any respect. The terms of this Guaranty shall be binding
        upon, and inure to the benefit of, each Guarantor and the Holders and their
        respective successors and assigns. No term or provision of this Guaranty
        may be
        changed, waived, discharged or terminated orally, but only by an instrument
        in
        writing signed by each Guarantor and the Required Holders. The section and
        paragraph headings in this Guaranty and the table of contents are for
        convenience of reference only and shall not modify, define, expand or limit
        any
        of the terms or provisions hereof, and all references herein to numbered
        sections, unless otherwise indicated, are to sections in this Guaranty. This
        Guaranty shall in all respects be governed by, and construed in accordance
        with,
        the laws of the State of New York, including all matters of construction,
        validity and performance.

       

      IN
        WITNESS WHEREOF, each Guarantor has caused this Guaranty to be duly executed
        as
        of the day and year first above written.

       

      

      [GUARANTORS]

      

      

      

      By:
              

      Name:
              

      Title:
              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      FORM
        OF
        JOINDER TO SUBSIDIARY GUARANTY

      

      The
        undersigned (the “Guarantor”), joins in the Subsidiary Guaranty dated as of
        February 1, 2007 from the Guarantors named therein in favor of the Holders,
        as defined therein, and agrees to be bound by all of the terms thereof and
        represents and warrants to the Holders that:

       

      (a)  the
        Guarantor is duly organized, validly existing and in good standing under
        the
        laws of its jurisdiction of organization and has the requisite power and
        authority to own and operate its property, to lease the property it operates
        as
        lessee and to conduct the business in which it is currently
        engaged;

       

      (b)  the
        Guarantor has the requisite power and authority and the legal right to execute
        and deliver this Joinder to Subsidiary Guaranty (“Joinder”) and to perform its
        obligations hereunder and under the Subsidiary Guaranty and has taken all
        necessary action to authorize its execution and delivery of this Joinder
        and its
        performance of the Subsidiary Guaranty;

       

      (c)  the
        Subsidiary Guaranty constitutes a legal, valid and binding obligation of
        the
        Guarantor enforceable in accordance with its terms, except as enforceability
        may
        be limited by bankruptcy, insolvency, reorganization, moratorium or similar
        laws
        affecting the enforcement of creditors’ rights generally and by general
        equitable principles (regardless of whether such enforceability is considered
        in
        a proceeding in equity or at law);

       

      (d)  the
        execution, delivery and performance of this Joinder and performance of the
        Subsidiary Guaranty will not (i) contravene, result in any breach of, or
        constitute a default under, or result in the creation of any Lien in respect of
        any property of such Guarantor under any indenture, mortgage, deed of trust,
        loan, credit agreement, corporate charter or by-laws, or any other agreement
        evidencing Debt, (ii) contravene, result in any breach of, or constitute
        a
        default under, or result in the creation of any Lien in respect of any property
        of such Guarantor under, any other agreement or instrument to which such
        Guarantor is bound or by which such Guarantor or any of its properties may
        be
        bound or affected, except as could not reasonably be expected to have a Material
        Adverse Effect, (iii) conflict with or result in a breach of any of the terms,
        conditions or provisions of any order, judgment, decree, or ruling of any
        court,
        arbitrator or Governmental Authority applicable to such Guarantor, except
        as
        could not reasonably be expected to have a Material Adverse Effect, or (iv)
        violate any provision of any statute or other rule or regulation of any
        Governmental Authority applicable to such Guarantor, except as could not
        reasonably be expected to have a Material Adverse Effect;

       

      (e)  no
        consent, approval or authorization of, or registration, filing or declaration
        with, any Governmental Authority is required in connection with the execution,
        delivery or performance by such Guarantor of this Joinder or the Subsidiary
        Guaranty; 

       

      (f)  except
        as
        disclosed in writing to the holders, no litigation, investigation or proceeding
        of or before any arbitrator or governmental authority is pending or, to the
        knowledge of the Guarantor, threatened by or against the Guarantor or any
        of its
        properties or revenues (i) with respect to this Joinder, the Subsidiary
        Guaranty or any of the transactions contemplated hereby or (ii) that could
        reasonably be expected to have a material adverse effect on the business,
        operations or financial condition of the Guarantor and its subsidiaries taken
        as
        a whole;

       

      (g)  such
        Guarantor (after giving due consideration to any rights of contribution)
        has
        received fair consideration and reasonably equivalent value for the incurrence
        of its obligations hereunder or as contemplated hereby and after giving effect
        to the transactions contemplated herein, (i) the fair value of the assets
        of such Guarantor (both at fair valuation and at present fair saleable value)
        exceeds its liabilities, (ii) such Guarantor is able to and expects to be
        able
        to pay its debts as they mature, and (iii) such Guarantor has capital
        sufficient to carry on its business as conducted and as proposed to be
        conducted.

       

      Capitalized
        Terms used but not defined herein have the meanings ascribed in the Subsidiary
        Guaranty.

       

      IN
        WITNESS WHEREOF, the undersigned has caused this Joinder to Subsidiary Guaranty
        to be duly executed as of __________, ____.

       

      

      [Name
        of
        Guarantor]

      

      

      

      By:
              

      Name:
              

      Title:
              

      

      

      

      

      
        
          
            

            

            Exhibit
              1.3

            CHIC_

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        4.4(a)

       

      FORM
        OF OPINION OF SPECIAL 

       

       

      COUNSEL
        FOR THE COMPANY

       

      The
        opinion of Jones, Walker, Waechter, Poitevent, Carrere & Denegre L.L.P.,
        special counsel for the Company, shall be to the effect that:

       

      1.  The
        Note
        Purchase Agreement and the Notes constitute the legal, valid and binding
        agreements of the Company, enforceable in accordance with their terms, except
        to
        the extent that enforcement thereof may be limited by applicable bankruptcy,
        insolvency, reorganization, moratorium or similar laws of general application
        relating to or affecting the enforcement of the rights of creditors or by
        equitable principles, regardless of whether enforcement is sought in a
        proceeding in equity or at law.

       

      2.  The
        Subsidiary Guaranty constitutes the legal, valid and binding obligation of
        each
        Subsidiary Guarantor, enforceable in accordance with its terms, except to
        the
        extent the enforcement thereof may be limited by applicable bankruptcy,
        insolvency, fraudulent conveyance, reorganization, moratorium or similar
        laws of
        general application relating to or affecting the enforcement of the rights
        of
        creditors or by equitable principles, regardless of whether enforcement is
        sought in a proceeding in equity or at law.

       

      3.  The
        Note
        Purchase Agreement, the Notes and the Subsidiary Guaranty specify New York
        law
        to govern such documents. We are of the opinion that, if properly presented
        with
        the question, a state or federal court located in Louisiana would give effect
        to
        the choice of law stipulations in the Note Purchase Agreement, the Notes
        and the
        Subsidiary Guaranty, unless (a) a court finds that the chosen jurisdiction’s own
        conflict of law principals dictate the application of another body of law
        or (b)
        the chosen law contravenes the public policy of the state whose law would
        otherwise be applicable absent the contractual choice of law. 

       

      4.  In
        the
        event a state or federal court located in Louisiana disregarded the contractual
        choice of New York law provided in the Note Purchase Agreement, the
        Notes or the Subsidiary Guaranty, the Note Purchase Agreement, the Notes
        and the
        Subsidiary Guaranty would nevertheless constitute the legal, valid and binding
        obligations of the Company and the Subsidiary Guarantors respectively,
        enforceable in accordance with their respective terms under Louisiana
        law.

       

      5.  Based
        on
        the representations set forth in the Agreement, the offering, sale and delivery
        of the Notes and delivery of the Subsidiary Guaranty do not require the
        registration of the Notes or the Subsidiary Guaranty under the Securities
        Act of
        1933, as amended, or the qualification of an indenture under the Trust Indenture
        Act of 1939, as amended.

       

      6.  No
        authorization, approval or consent of, and no designation, filing, declaration,
        registration and/or qualification with, any Governmental Authority is necessary
        or required in connection with the execution, delivery and performance by
        the
        Company of the Note Purchase Agreement or the offering, issuance and sale
        by the Company of the Notes, and no authorization, approval or consent of,
        and
        no designation, filing, declaration, registration and/or qualification with,
        any
        Governmental Authority is necessary or required in connection with the
        execution, delivery and performance by any Subsidiary Guarantor of the
        Subsidiary Guaranty.

       

      7.  The
        issuance and sale of the Notes by the Company, and the execution, delivery
        and
        performance by the Company of the terms and conditions of the Notes and the
        Note
        Purchase Agreement do not conflict with, or result in any breach or violation
        of
        any of the provisions of, or constitute a default under, or result in the
        creation or imposition of any Lien on, the property of the Company or any
        Subsidiary Guarantor pursuant to the provisions of (i) the certificate or
        incorporation or bylaws of the Company, (ii) the Credit Agreement, the
        Receivables Sale Agreement or any other agreement to which the Company or
        any
        Subsidiary Guarantor is a party or by which any of them or their property
        is
        bound that has been filed (or incorporated by reference) as an exhibit to
        the
        Company’s Annual Report on Form 10-K for the year ended December 31, 2005
        filed with the SEC or to any other Quarterly Report on Form 10-Q or Current
        Report on Form 8-K thereafter filed by the Company with the SEC, (iii) any
        New York, Louisiana or federal law (including usury laws) or regulation that,
        in
        such counsel’s experience, is normally applicable both to general business
        corporations that are not engaged in regulated business activities and to
        transactions of the type contemplated by the Note Purchase Agreement, or
        (iv) to
        the knowledge of such counsel, any order, writ, injunction or decree of any
        court or Governmental Authority applicable to the Company.

       

      8.  The
        execution, delivery and performance of the Subsidiary Guaranty will not conflict
        with, or result in any breach or violation of any of the provisions of, or
        constitute a default under, or result in the creation or imposition of any
        Lien
        on, the property of any Subsidiary Guarantor pursuant to the provisions of
        the
        Credit Agreement, the Receivables Sale Agreement or any other agreement to
        which
        the Company or any Subsidiary is a party or by which any of them or their
        property is bound that has been filed (or incorporated by reference) as an
        exhibit to the Company’s Annual Report on Form 10-K for the year ended
        December 31, 2005 filed with the SEC or to any other Quarterly Report on
        Form 10-Q or Current Report on Form 8-K thereafter filed by the Company with
        the
        SEC,.

       

      9.  Neither
        the Company nor any Subsidiary is an “investment company” or a company
“controlled” by an “investment company,” as such terms are defined in the
        Investment Company Act of 1940, as amended.

       

      10.  Assuming
        the accuracy of the Company’s representation in Section 5.14 of the Note
        Purchase Agreement, the issuance of the Notes and the intended use of the
        proceeds of the sale of the Notes do not violate or conflict with Regulation
        U,
        T or X of the Board of Governors of the Federal Reserve System.

       

      The
        opinion of Jones, Walker, Waechter, Poitevent, Carrere & Denegre L.L.P.
        shall cover such other matters relating to the sale of the Notes as the
        Purchasers may reasonably request. With respect to matters of fact on which
        such
        opinion is based, such counsel may rely on appropriate certificates of public
        officials and officers of the Company or the Subsidiary Guarantors and with
        respect to matters governed by the laws of any jurisdiction other than the
        United States of America, the laws of the state of Louisiana or the state
        of New
        York, such counsel may rely upon the opinions of counsel deemed (and stated
        in
        its opinion to be deemed) by it to be competent and reliable. Such opinion
        shall
        state that subsequent transferees and assignees of the Notes may rely thereon.
        Such opinion also may be subject to reasonable and customary exceptions,
        assumptions and qualifications.

       

      

      
        
          
            

            

            Exhibit
              4.4(a)

            CHIC_13

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        4.4(b)

       

      FORM
        OF OPINION OF GENERAL

       

       

      COUNSEL
        OF THE COMPANY

       

      The
        opinion of Jennifer M. Neil, Corporate Secretary and General Counsel of the
        Company, shall be to the effect that:

       

      1.  Each
        of
        the Company and each Subsidiary Guarantor is a corporation duly incorporated,
        validly existing and in good standing under the laws of its jurisdiction
        of
        incorporation, and each has all requisite corporate power and authority to
        own
        and operate its properties, to carry on its business as now conducted, and,
        in
        the case of the Company, to enter into and perform the Note Purchase Agreement
        and to issue and sell the Notes and, in the case of each Subsidiary Guarantor,
        to enter into and perform the Subsidiary Guaranty.

       

      2.  The
        Note
        Purchase Agreement and the Notes have been duly authorized by proper corporate
        action on the part of the Company, have been duly executed and delivered
        by an
        authorized officer of the Company.

       

      3.  The
        Subsidiary Guaranty has been duly authorized by proper corporate action on
        the
        part of each Subsidiary Guarantor, has been duly executed and delivered by
        an
        authorized officer each such Subsidiary Guarantor.

       

      4.  No
        authorization, approval or consent of, and no designation, filing, declaration,
        registration and/or qualification with, any Governmental Authority is necessary
        or required in connection with the execution, delivery and performance by
        the
        Company of the Note Purchase Agreement or the offering, issuance and sale
        by the Company of the Notes, and no authorization, approval or consent of,
        and
        no designation, filing, declaration, registration and/or qualification with,
        any
        Governmental Authority is necessary or required in connection with the
        execution, delivery and performance by any Subsidiary Guarantor of the
        Subsidiary Guaranty.

       

      5.  The
        issuance and sale of the Notes by the Company, and the execution, delivery
        and
        performance by the Company of the terms and conditions of the Notes and the
        Note
        Purchase Agreement do not conflict with, or result in any breach or violation
        of
        any of the provisions of, or constitute a default under, or result in the
        creation or imposition of any Lien on, the property of the Company or any
        Subsidiary pursuant to the provisions of (i) the certificate or articles of
        incorporation or bylaws of the Company or any Subsidiary Guarantor, (ii)
        the
        Credit Agreement, the Receivables Sale Agreement or any other agreement to
        which
        the Company or any Subsidiary Guarantor is a party or by which any of them
        or
        their property is bound that has been filed (or incorporated by reference)
        as an
        exhibit to the Company’s Annual Report on Form 10-K for the year ended
        December 31, 2005 filed with the SEC or to any other Quarterly Report on
        Form 10-Q or Current Report on Form 8-K thereafter filed by the Company with
        the
        SEC, (iii) any Louisiana law (including usury laws) or regulation or any
        provision of the Delaware General Corporation Law applicable to the Company,
        or
        (iv) to the knowledge of such counsel, any order, writ, injunction or decree
        of
        any court or Governmental Authority applicable to the Company.

       

      6.  The
        execution, delivery and performance of the Subsidiary Guaranty will not conflict
        with, or result in any breach or violation of any of the provisions of, or
        constitute a default under, or result in the creation or imposition of any
        Lien
        on, the property of any Subsidiary Guarantor pursuant to the provisions of
        (i) its certificate or articles of incorporation or by-laws, (ii) the
        Credit Agreement, the Receivables Sale Agreement or any other agreement to
        which
        the Company or any Subsidiary is a party or by which any of them or their
        property is bound that has been filed (or incorporated by reference) as an
        exhibit to the Company’s Annual Report on Form 10-K for the year ended
        December 31, 2005 filed with the SEC or to any other Quarterly Report on
        Form 10-Q or Current Report on Form 8-K thereafter filed by the Company with
        the
        SEC,, (iii) any provision of the Delaware General Corporation Law or any
        Louisiana law or regulation applicable to any Subsidiary Guarantor that,
        in such
        counsel’s experience, is normally applicable both to general business
        corporations that are not engaged in regulated business activities and to
        transactions of the type contemplated by the Note Purchase Agreement, or
        (iv) to
        the knowledge of such counsel, any order, writ, injunction or decree of any
        court or Governmental Authority applicable to any Subsidiary
        Guarantor.

       

      7.  There
        are
        no actions, suits or proceedings pending, or, to such counsel’s knowledge,
        threatened against, or affecting the Company or any Subsidiary, at law or
        in
        equity or before or by any Governmental Authority, that are likely to result,
        individually or in the aggregate, in a Material Adverse Effect.

       

      The
        opinion of Jennifer M. Neil shall cover such other matters relating to the
        sale
        of the Notes as the Purchasers may reasonably request. With respect to matters
        of fact on which such opinion is based, such counsel may rely on appropriate
        certificates of public officials and officers of the Company or the Subsidiary
        Guarantors and with respect to matters governed by the laws of any jurisdiction
        other than the United States of America, the laws of the state of Louisiana
        or
        the Delaware General Corporation Law, such counsel may rely upon the opinions
        of
        counsel deemed (and stated in her opinion to be deemed) by her to be competent
        and reliable. Such opinion shall state that subsequent transferees and assignees
        of the Notes may rely thereon. Such opinion also may be subject to reasonable
        and customary exceptions, assumptions and qualifications.

       

      

       

      

      
        
          
            

            

            Exhibit
              4.4(b)

            CHIC_

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        4.4(c)

       

      FORM
        OF OPINION OF SPECIAL COUNSEL

       

       

      TO
        THE PURCHASERS

       

      The
        opinion of Foley & Lardner LLP, special counsel to the Purchasers, shall be
        to the effect that:

       

      1.  The
        Company is a corporation validly existing in good standing under the laws
        of the
        state of Delaware, with requisite corporate power and authority to enter
        into
        the Agreement and to issue and sell the Notes.

       

      2.  The
        Agreement and the Notes have been duly authorized by proper corporate action
        on
        the part of the Company, have been duly executed and delivered by an authorized
        officer of the Company, and constitute the legal, valid and binding agreements
        of the Company, enforceable in accordance with their terms, except to the
        extent
        that enforcement thereof may be limited by applicable bankruptcy, insolvency,
        reorganization, fraudulent conveyance, fraudulent transfer, moratorium or
        similar laws of general application relating to or affecting the enforcement
        of
        the rights of creditors or by equitable principles, regardless of whether
        enforcement is sought in a proceeding in equity or at law.

       

      3.  The
        Subsidiary Guaranty has been duly authorized by proper corporate or limited
        liability company, as the case may be, action on the part of each Subsidiary
        Guarantor, has been duly executed and delivered by an authorized officer
        of each
        Subsidiary Guarantor, and constitutes the legal, valid and binding obligation
        of
        each Subsidiary Guarantor, enforceable in accordance with its terms, except
        to
        the extent the enforcement thereof may be limited by applicable bankruptcy,
        insolvency, fraudulent conveyance, fraudulent transfer, reorganization,
        moratorium or similar laws of general application relating to or affecting
        the
        enforcement of the rights of creditors or by equitable principles, regardless
        of
        whether enforcement is sought in a proceeding in equity or at law.

       

      4.  Based
        upon the representations set forth in the Agreement, the offering, sale and
        delivery of the Notes do not require the registration of the Notes under
        the
        Securities Act of 1933, as amended, nor the qualification of an indenture
        under
        the Trust Indenture Act of 1939, as amended.

       

      5.  The
        issuance and sale of the Notes and compliance with the terms and provisions
        of
        the Notes and the Agreement do not conflict with or result in any breach
        of any
        of the provisions of the Articles of Incorporation or By-Laws of the
        Company.

       

      6.  No
        approval, consent or withholding of objection on the part of, or filing,
        registration or qualification with, any governmental body, Federal or state,
        is
        necessary in connection with the execution and delivery of the Note Agreement
        or
        the Notes.

       

      The
        opinion of Foley & Lardner LLP shall state that the opinions of Jones,
        Walker, Waechter, Poitevent, Carrere & Denegre L.L.P. and Jennifer M. Neil
        are satisfactory in form and scope to it, and that, in its opinion, the
        Purchasers are justified in relying thereon and shall cover such other matters
        relating to the sale of the Notes as the Purchasers may reasonably
        request.

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