Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Source Petroleum Inc. - Exhibit 10.1

 

 

 

 

 

 

PURCHASE AND SALE AGREEMENT 

 

BETWEEN: 

 

ARCH ENERGY INC. 

 

AND 

 

SOURCE PETROLEUM INC. and 1245147 ALBERTA LTD. 

 

DATED THE 7th DAY OF SEPTEMBER, 2007

TABLE OF CONTENTS 

	1. 	INTERPRETATION 	4 
	  	1.1 	DEFINITIONS 	4 
	  	1.2 	SCHEDULES AND EXHIBITS 	11 
	  	1.3 	INTERPRETATION NOT AFFECTED BY HEADINGS
      	11 
	  	1.4 	INCLUDED WORDS 	12 
	  	1.5 	HEADINGS 	12 
	  	1.6 	STATUTORY REFERENCES 	12 
	  	1.7 	INVALIDITY OF PROVISIONS 	12 
	  	1.8 	KNOWLEDGE OR AWARENESS 	12 
	  	  	  	  
	2. 	PURCHASE AND SALE AND CLOSING 	12 
	  	2.1 	PURCHASE AND SALE 	12 
	  	2.2 	PURCHASE PRICE 	13 
	  	2.3 	CLOSING 	14 
	  	2.4 	FORM OF PAYMENT 	14 
	  	2.5 	LIMITED ASSUMPTION OF LIABILITIES 	14 
	  	2.6 	TAX ALLOCATION 	14 
	  	2.7 	OTHER TAXES 	15 
		2.8 	DIVIDEND OF COMMON SHARES,
      SERIES A PERFORMANCE WARRANTS, AND SERIES B PERFORMANCE WARRANTS 	15 
	  	  	  	  
	3. 	DOCUMENTS, RECORDS AND SPECIFIC CONVEYANCES
      	17 
	  	3.1 	DELIVERY OF DATA 	17 
	  	3.2 	CONVEYANCES AND JOINT OBLIGATIONS
      	17 
	  	3.3 	ARBITRATION 	17 
	  	  	  	  
	4. 	INTERIM OPERATIONS
      	18 
	  	4.1 	MAINTENANCE OF THE ASSETS
      	18 
	  	4.2 	CONSENT OF PURCHASER 	18 
	  	  	  	  
	5. 	APPORTIONMENTS. 	19 
	  	5.1 	APPORTIONMENTS 	19 
	  	  	  	  
	6. 	CLOSING 	21 
	  	6.1 	VENDOR'S CLOSING CONDITIONS 	21 
	  	6.2 	PURCHASER'S CLOSING CONDITIONS
      	22 
	  	6.3 	EFFORTS TO FULFILL CONDITIONS PRECEDENT
      	24 
	  	6.4 	ASSIGNED CONTRACTS 	25 
	  	  	  	  
	7. 	REPRESENTATIONS AND WARRANTIES 	25 
	  	7.1 	REPRESENTATIONS AND WARRANTIES OF VENDOR
      	25 
	  	7.2 	LIMITATION OF REPRESENTATIONS
      AND WARRANTIES 	28 
	  	7.3 	REPRESENTATIONS AND WARRANTIES OF PURCHASER
      	29 
	  	  	  	  
	8. 	INDEMNITIES
      	30 
	  	8.1 	INDEMNITIES FOR REPRESENTATIONS
      AND WARRANTIES 	30 
	  	8.2 	GENERAL PRE AND POST-CLOSING INDEMNITY 	31 
	  	8.3 	ENVIRONMENTAL INDEMNITY 	31 
	  	  	  	  
	9. 	GENERAL 	32 
	  	9.1 	TERMINATION 	32 
	  	9.2 	EXCLUSIVITY 	32 
	  	9.3 	TERMINATION FEE 	33 
	  	9.4 	CONFIDENTIALITY 	34 
	  	9.5 	EMPLOYEES 	34 
	  	9.6 	PRIVACY RESTRICTIONS 	34 
	  	9.7 	FURTHER ASSURANCES 	34 

Page 2 

	 	9.8 	RECOGNITION 	34

	 	9.9 	NO MERGER 	35 
	 	9.10 	PUBLIC ANNOUNCEMENTS 	35

	 	9.11 	SIGNS AND NOTIFICATIONS 	36 
	 	9.12 	GOVERNING LAW 	36

	 	9.13 	TIME 	36 
	 	9.14 	NOTICES 	36

	 	9.15 	ENTIRE AGREEMENT 	37 
	 	9.16 	ENUREMENT 	37

	 	9.17 	WAIVERS 	37 
	 	9.18 	SUBSTITUTION AND SUBROGATION
      	37

	 	9.19 	EXPENSES 	37 
	 	9.20 	SEVERABILITY 	37

	 	9.21 	COUNTERPART EXECUTION 	39 

SCHEDULES 

	Schedule “A” 	- Lands and
      Leases 
	Schedule “B” 	- Facilities, Processing
      Obligations and Units and exclusions from Miscellaneous Interests
  
	Schedule “C” 	- Wells
    
	Schedule “D” 	- Conveyance 
	Schedule “E” 	- Assumed
      Liabilities 

Page 3 

PURCHASE AND SALE AGREEMENT 

THIS AGREEMENT dated the 7th day of
September, 2007, BETWEEN: 

  
    
      
        SOURCE PETROLEUM INC., a body corporate having
          an office and carrying on business in the City of Calgary, in the Province
          of Alberta ("Vendor") and 1245147 ALBERTA LTD., a body
          corporate having an office and carrying on business in the City of Calgary,
          in the Province of Alberta (“Subco”) 

      

    

  

- and - 

  
    
      
        ARCH ENERGY INC., a body corporate having an
          office and carrying on business in the City of Calgary, in the Province
          of Alberta ("Purchaser") 

      

    

  

      
       WHEREAS Vendor and Subco wish to sell
to Purchaser and Purchaser wishes to purchase from Vendor and Subco the Assets,
all subject to and in accordance with the terms and conditions set forth herein;

    
         NOW THEREFORE in
consideration of the premises and the mutual covenants and agreements
hereinafter contained, the Parties agree as follows: 

	1. 	
      INTERPRETATION

	 	 	 
	1.1 	
      Definitions

	 	 	 
		
      In this Agreement, including the recitals, this section
      and the schedules attached hereto, the following capitalized words and
      phrases shall have the following meanings:

	 	 	 
		(a) 	
      "Abandonment and Reclamation Obligations"
      means all obligations to abandon the Wells and restore and reclaim the
      surface sites thereof, to decommission and remove the facilities and
      equipment comprised in the Tangibles and restore and reclaim the surface
      sites thereof and to reclaim and restore the lands to which the surface
      rights relate;

	 	 	 
		(b) 	
      "Adjustment Date" means the hour of 8:00
      a.m. Calgary, Alberta time on the date of Closing;

	 	 	 
		(c) 	
      "EUB" means any energy and utilities board,
      or its local equivalent, having jurisdiction regarding a particular asset
      of the Vendor and Subco;

	 	 	 
		(d) 	
      "AFEs" means authorities for expenditure,
      cash calls and operations notices issued under operating agreements
      authorizing expenditures and similar items and amounts budgeted pursuant
      to unit operating agreements for the Units and approved mail ballots, if
      any;

Page 4 

	 	(e) 	
      “Arch Subsequent Financing” means the
      equity financing of the Purchaser, or any Successor Issuer, for an amount
      of at least $1,000,000, to be completed after the date of this Agreement
      but prior to or concurrently or contemporaneously with the
  Closing;

	 	 	 
	 	(f) 	
      "Assets" means the Petroleum and Natural
      Gas Rights, the Tangibles and the Miscellaneous Interests;

	 	 	 
	 	(g) 	
      "Assumed Liabilities" means the specific
      payables of the Vendor and Subco with respect to the Assets occurring
      prior to the Adjustment Date, and further described in Schedule E attached
      hereto;

	 	 	 
	 	(h) 	
      "Business Day" means any day other than a
      Saturday, a Sunday or a statutory holiday in Calgary, Alberta;

	 	 	 
	 	(i) 	
      "Closing" means the closing of the purchase
      and sale herein provided for;

	 	 	 
	 	(j) 	
      "Closing Time" means the hour of 12:00 p.m.
      Calgary, Alberta time on November 30, 2007, or such other date or time as
      may be agreed upon in writing by the Parties;

	 	 	 
	 	(k) 	
      "Common Shares" shall mean common shares in
      the capital of the Purchaser, as presently constituted, or in any
      Successor Issuer;

	 	 	 
	 	(l) 	
      "Confidentiality Agreement" means the
      confidentiality agreement between the Vendor and the Purchaser dated
      September 7, 2007

	 	 	 
	 	(m) 	
      "Contracts" means all contracts and other
      agreements, arrangements, understandings and commitments directly relating
      to the Assets and, subject to section 6.4 hereof, shall include, without
      limitation, the proportion of the master services agreements relating to
      the Tangibles that may be assigned to Purchaser;

	 	 	 
	 	(n) 	
      "Environmental Liabilities" means any and
      all environmental damage or contamination or other environmental problems
      pertaining to or caused by the Assets or operations thereon or related
      thereto, however and by whomsoever caused, and whether such environmental
      damage or contamination or other environmental problems occur or arise in
      whole or in part prior to, at or subsequent to the Closing Time. Without
      limiting the generality of the foregoing, such environmental damage or
      contamination or other environmental problems shall include (i) surface,
      underground, air, ground water or surface water contamination; (ii) the
      abandonment or plugging of or failure to abandon or plug any of the Wells;
      (iii) the restoration or reclamation of or failure to restore or reclaim
      any part of the Assets; (iv) the breach of applicable Regulations in
      effect at any time; and (v) the removal of or failure to remove
      foundations, structures or equipment;

	 	 	 
	 	(o) 	
      "Exclusivity Period" means the period of
      time from and including the date of this Agreement to and including the
      date of termination of this Agreement in accordance with the terms
      hereof;

	 	 	 
	 	(p) 	
      "Facilities" means the right, title, estate
      and interest of Vendor or Subco described in Schedule "B" in and to the
      facilities described in Schedule “B” and all of those facilities related
      to the Lands, if any;

Page 5 

	 	(q) 	
      "GST" means the goods and services tax
      administered pursuant to the Excise Tax Act (Canada), 1980, R.S.C.,
      C.E.-15, as amended and the regulations thereunder or under any successor
      or parallel federal or provincial legislation that imposes a tax on the
      recipient of goods and services;

	 	 	 	 	 
	 	(r) 	
      "Lands" means:

	 	 	 	 	 
	 		(i) 	
      the following lands in which the Vendor or Subco has an
      interest as described below;

	 	 	 	 	 
	 			(A) 	
      TWP 75 Rge 4 W6M: Section 21, all P& NG below base of
      the Halfway, TWP 75 Rge 4 W6M: Section 29, all P& NG below base of the
      Stoddart; TWP 75 Rge 4 W6M: Section 31, all P& NG below base of the
      Bluesky- Bullhead, in the Woking Area of Alberta, Canada and as more
      specifically described in the Farmout Agreement between Dual Exploration
      Inc. and 1245147 Alberta Ltd. dated July 4, 2006 (the “Woking
      Property”);

	 	 	 	 	 
	 			(B) 	
      TWP 83 Rge 19 W5M: Sections 15, 16, 17, 20, 21 and 29,
      Oilsands from the top of the Peace River fm to the base of the Pekisko fm,
      in the Harmon Valley area of Alberta, Canada and as more specifically
      described in the Farmout Agreement between Dual Exploration Inc. and
      1245147 Alberta Ltd. dated July 4, 2006 (the “Harmon Valley
      Property”); and

	 	 	 	 	 
	 			(C) 	
      TWP 40, Rge 31, W1M Sections 1-36, TWP 41, Rge 31, W1M
      Section 1-35, TWP 40 Rge 32, W1M Section 1-3 incl., Frac. E/2 Sec. 4,
      Frac. E/2 Sect. 9, 10-15 incl., Frac. E/2 Sec. 16, Frac E/2 Sec. 21, 22-27
      incl, Frac. E/2 Sec. 28, Frac. E/2 Sec. 33, 34-36 incl., TWP 41, Rge 32,
      W1M Secs 1-3 incl., Frac. E/2 Sec. 4, Frac. E/2 Sec. 9, 10-15 incl., Frac.
      E/2 Sec. 16, Frac. E/2 Sec. 21, 22-27 incl., Frac. E/2 Sec. 28, Frac. E/2
      Sec. 33, 34-36 incl; TWP 48, Rge 15, W2M, Sections 1-36, TWP 49, Rge 15,
      W2M, Sections 1-36; TWP 48, Rge 15, W2M, Sections 1-36; TWP 48, Rge 16,
      W2M, Sections 1-36, TWP 49, Rge 16, W2M, Sections 1-36, TWP 48, Rge 13,
      W2M, Sections 1-33, Sec. 36, TWP 48, Rge 14, W2M, Sections 1-36, TWP 48,
      Rge 12, W2M, Sections 1-22 incl., S/2 & NW 23, 24-36 incl., in the
      Province of Saskatchewan, Canada and as more specifically described in Oil
      Shale Exploration Permits PS 00244, PS00245 and PS00246 (the
      “Saskatchewan Property”).

	 	 	 	 	 
	 		(ii) 	
      the lands set forth and described in Schedule “A” insofar
      as rights thereto are granted by the Leases and any and all lands pooled
      or unitized therewith and includes the Petroleum Substances within such
      lands subject to such limitations as to geological formations and
      Petroleum Substances as set forth in Schedule “A”;

	 	 	 	 	 
	 	(s) 	
      "Leases" means all leases, licences,
      permits and other documents of title set forth and described in Schedule
      “A”, by virtue of which the holder thereof is entitled to drill for, win,
      take, own or remove the Petroleum Substances within, upon or under the
      Lands or by virtue of which the holder thereof is deemed to be entitled to
      a share of Petroleum

Page 6 

	 		
      Substances removed from the Lands and includes, if
      applicable, all renewals and extensions of such documents and all
      documents issued in substitution therefore but only insofar as the same
      relate to the Lands;

	 	 	 	 	 
	 	(t) 	
      "Losses" means all actions, causes of
      action, losses, costs, claims, damages, penalties, assessments, charges,
      expenses or other liabilities whatsoever suffered, sustained, or incurred
      by a Party and include, without limitation, reasonable legal fees on a
      solicitor and client basis and other professional fees and disbursements
      on a full indemnity basis, but notwithstanding the foregoing shall not
      include any liability for indirect or consequential damages including,
      without limitation, business loss, loss of profit, economic loss, punitive
      damages, or income tax liabilities;

	 	 	 	 	 
	 	(u) 	
      "Miscellaneous Interests" means, subject to
      any and all limitations and exclusions provided for in this definition,
      all property, assets, interests and rights pertaining to the Petroleum and
      Natural Gas Rights and the Tangibles owned by the Vendor or Subco, or
      either of them, but only to the extent that such property, assets,
      interests and rights pertain to the Petroleum and Natural Gas Rights and
      the Tangibles, or either of them, including, without limitation, any and
      all of the following:

	 	 	 	 	 
	 		(i) 	
      all contracts, agreements, documents, well licenses and
      books and records relating to the Assets;

	 	 	 	 	 
	 		(ii) 	
      the Production Sales Contracts, the Transportation
      Agreements, the Processing Obligations and any other contracts and
      agreements relating to the Petroleum and Natural Gas Rights and the
      Tangibles, or either of them, including without limitation, gas purchase
      contracts, processing agreements, transportation agreements and agreements
      for the construction, ownership and operation of facilities;

	 	 	 	 	 
	 		(iii) 	
      fee simple rights to, and rights to enter upon, use or
      occupy the surface of any lands which are or may be used to gain access to
      or otherwise use the Petroleum and Natural Gas Rights and the Tangibles,
      or either of them, excluding any such rights that pertain only to a well
      or wells other than the Wells;

	 	 	 	 	 
	 		(iv) 	
      the Wells (and no other wells), including the wellbores
      and any and all casing; and

	 	 	 	 	 
	 		(v) 	
      all records, books, documents, licences, permits,
      approvals, authorizations, files, or papers which relate to the Petroleum
      and Natural Gas Rights and the Tangibles, or either of them, but
      specifically excluding any of the foregoing that

	 	 	 	 	 
	 			(i) 	
      may pertain to Vendor's or Subco’s proprietary technology
      or interpretations;

	 	 	 	 	 
	 			(ii) 	
      are owned or licensed by Third Parties with restrictions
      on their delivery or

	 	 	 	 	 
	 			
      disclosure by Vendor or Subco to any assignee; and (iii)
      are referred to specifically as exclusions in Schedule “B”;

	 	 	 	 	 
	 	(v) 	
      "Party" means a party to this
    Agreement;

	 	 	 	 	 
	 	(w) 	
      "Permitted Encumbrances" means:

	 	 	 	 	 
	 		(i) 	
      easements, rights of way, servitudes and other similar
      rights in land (including, without limitation, rights of way and
      servitudes for highways and other roads,

Page 7 

	 		
      railways, sewers, drains, gas and oil pipelines, gas and
      water mains, electric light, power, telephone, telegraph or cable
      television conduits, poles, towers, wires and cables) which do not
      materially impair the use of the Assets affected thereby;

	 	 	 
	 	(ii) 	
      the right reserved to or vested in any municipality or
      government or other public authority by the terms of any lease, licence,
      franchise, grant or permit or by any statutory provision, to terminate any
      such lease, licence, franchise, grant or permit or to require annual or
      other periodic payments as a condition of the continuance
  thereof;

	 	 	 
	 	(iii) 	
      liens imposed by statute securing the payment of taxes,
      assessments and governmental charges which are not due;

	 	 	 
	 	(iv) 	
      rights of general application reserved to or vested in
      any governmental authority to levy taxes on Petroleum Substances produced
      from the Lands or any of them or the revenue therefrom and governmental
      requirements and limitations of general application as to production rates
      on the operations of any property;

	 	 	 
	 	(v) 	
      the terms and conditions of the Leases, the Production
      Sales Contracts, the Transportation Agreements, the Processing Obligations
      and agreements, if any, for the sale of Petroleum Substances produced from
      the Lands that are terminable on not greater than 91 days notice (without
      an early termination penalty or other cost);

	 	 	 
	 	(vi) 	
      statutory exceptions to title, and the reservations,
      limitations, provisos and conditions in any original grants from the Crown
      of any of the mines and minerals within, upon or under the
Lands;

	 	 	 
	 	(vii) 	
      any security held by any Third Party encumbering Vendor's
      or Subco’s interest in and to the Assets, or any part or portion thereof,
      in respect of which Vendor or Subco delivers a discharge to Purchaser at
      or prior to Closing; and

	 	 	 
	 	(viii) 	
      all royalty burdens, liens, penalties, conversion rights,
      adverse claims, encumbrances and other claims of Third Parties set out in
      Schedule “A”;

	 	(x) 	
      "Petroleum and Natural Gas Rights" means
      such rights in and to the Lands and the Leases owned by the Vendor or
      Subco, together with any of the following which relate thereto owned by
      the Vendor or Subco:

	 	 	 	 
	 		(i) 	
      rights to explore for, drill for, extract, win, produce,
      take, save or market Petroleum Substances from the Lands;

	 	 	 	 
	 		(ii) 	
      rights to a share of the production of Petroleum
      Substances from the Lands;

	 	 	 	 
	 		(iii) 	
      rights to all Petroleum Substances injected into but not
      produced from the Lands;

	 	 	 	 
	 		(iv) 	
      rights to a share of the proceeds of, or to receive
      payment calculated by reference to, the quantity or value of the
      production of Petroleum Substances produced from the Lands, other than the
      rights under agreements for the sale of Petroleum

Page 8 

	 		
      Substances produced from the Lands including, without
      limiting the generality of the foregoing, the Unit Interest;

	 	 	 
	 	(v) 	
      rights to acquire any of the rights described in
      subparagraphs (i) to (iv) of this definition; and

	 	 	 
	 	(vi) 	
      interests in any rights described in subparagraphs (i) to
      (v) of this definition,

	 		
      including, to the extent that they are described in
      Schedule “A” all interests and rights known as working interests, royalty
      interests, overriding royalty interests, gross overriding royalty
      interests, production payments, profits interests, net profits interests,
      revenue interests, net revenue interests, economic interests and other
      interests, fractional or undivided interests in any of the
    foregoing;

	 	 	 
	 	(y) 	
      "Petroleum Substances" means any of crude
      oil, crude bitumen and products derived therefrom, synthetic crude oil,
      petroleum, natural gas, natural gas liquids and any and all other
      substances related to any of the foregoing, whether liquid, solid or
      gaseous and whether hydrocarbons or not, including without limitation,
      sulphur;

	 	 	 
	 	(z) 	
      "Place of Closing" means the offices of
      Shea Nerland Calnan LLP, 2800, 715 – 5th Avenue SW, Calgary, AB
      T2P 2X6, or such other place as may be agreed upon in writing by the
      Parties;

	 	 	 
	 	(aa) 	
      "Prime Rate" means the daily rate of
      interest expressed as a per annum rate announced from time to time by the
      main branch of the Royal Bank of Canada in Calgary, Alberta as a reference
      rate for the determination of interest rates on Canadian dollar commercial
      loans to customers in Canada which are in effect during the interest
      calculation period set forth in this Agreement;

	 	 	 
	 	(bb) 	
      "Processing Obligations" means those
      obligations relating to the processing of Petroleum Substances produced
      from the Lands, if any, described in Schedule “B”;

	 	 	 
	 	(cc) 	
      "Purchase Price" means the amount payable
      pursuant to section 2.2(a);

	 	 	 
	 	(dd) 	
      "Regulations" means all statutes, laws,
      rules, orders, regulations and directions of governmental and other
      competent authorities in effect from time to time and made by governments
      or governmental boards or agencies having jurisdiction over the
    Assets;

	 	 	 
	 	(ee) 	
      "Rights of First Refusal" means a right of
      first refusal, pre-emptive right of purchase or similar right whereby any
      Third Party has the right to acquire or purchase all or a portion of the
      Assets as a consequence of the Parties entering into this Agreement or the
      transaction to be effected by this Agreement;

	 	 	 
	 	(ff) 	
      "Security Interests" means security
      interests in the Assets or any portion thereof or granted by a Party, its
      affiliates or predecessors in title whether by way of mortgage, deed of
      trust, Bank Act (Canada), assignments, debenture, general security
      agreement or land charge under personal property security legislation or
      otherwise, including any amendments thereto;

	 	 	 
	 	(gg) 	
      “Series A Performance Warrants” means the
      securities of the Purchaser, or any Successor Issuer, which shall have the
      terms and conditions set out in section 2.2(b);

Page 9 

	 	(hh) 	
      “Series B Performance Warrants” means the
      securities of the Purchaser, or any Successor Issuer, which shall have the
      terms and conditions set out in section 2.2(c);

	 	 	 	 
	 	(ii) 	
      "Specific Conveyancing" means all
      conveyances, assignments, transfers, novations and other documents or
      instruments that are reasonably required or desirable to convey, assign
      and transfer the interest of Vendor or Subco in and to the Assets to
      Purchaser and to novate Purchaser in the place and stead of Vendor or
      Subco with respect to the Assets;

	 	 	 	 
	 	(jj) 	
      “Successor Issuer” means any issuer whose
      common shares are listed and posted for trading on either the TSX Venture
      Exchange or the Toronto Stock Exchange and that the Purchaser completes a
      reverse take over of either prior to or concurrently with the closing of
      the transaction contemplated by this Agreement;

	 	 	 	 
	 	(kk) 	
      "Take or Pay Amount" means Vendor's or
      Subco’s share of any and all amounts equal to the outstanding take or pay
      liability as of the Adjustment Date in respect of any and all Take or Pay
      Provisions;

	 	 	 	 
	 	(ll) 	
      "Take or Pay Provisions" means "take or
      pay" or similar provisions in or in respect of contracts for the sale of
      Petroleum Substances attributable to the Petroleum and Natural Gas Rights
      whereby Vendor or Subco is obligated to:

	 	 	 	 
	 		(i) 	
      sell or deliver Petroleum Substances without in due
      course receiving or being entitled to retain full payment therefore at the
      full price which would otherwise be applicable; or

	 	 	 	 
	 		(ii) 	
      pay any person an amount on account of payments
      previously made in respect of quantities of Petroleum Substances which
      were not previously delivered;

	 	 	 	 
	 	(mm) 	
      "Take-Over Proposal" means a bid or offer
      to acquire 20% or more of the outstanding common shares of the Vendor or
      Subco or any proposal, offer or agreement for a merger, consolidation,
      amalgamation, arrangement, recapitalization, liquidation, dissolution,
      reorganization into a royalty trust or income fund or similar transaction
      or other business combination involving the Vendor or Subco or any
      proposal, offer or agreement to acquire 25% or more of the assets of the
      Vendor or Subco; or

	 	 	 	 
	 	(nn) 	
      "Tangibles" means, to the extent they are
      owned by the Vendor or Subco:

	 	 	 	 
	 		(i) 	
      all tangible depreciable property and assets which are
      situate in, on or about the Lands or appurtenant thereto and which are
      used or are intended to be used in connection with production, gathering,
      processing, measuring, making marketable, injection, removal, transmission
      or treatment or storage of Petroleum Substances or operations thereon or
      relative thereto or appurtenant to or used in connection with the Wells or
      in connection with water or miscible fluids injection or removal
      operations that pertain to the Petroleum and Natural Gas Rights including,
      without limitation, gas plants, oil batteries, production equipment, fresh
      and produced water facilities, pipelines, pipeline connections, meters,
      dehydrators, motors, compressors, treaters, scrubbers, separators, pumps,
      tanks, boilers and communication equipment, but specifically excluding any
      tangible depreciable property and assets beyond the point of entry into a
      gathering system, plant or other facility;

Page 10 

	 	(ii) 	
      the Facilities; and

	 	 	 
	 	(iii) 	
      the Unit Facilities;

	 	(oo) 	
      "Termination Fee" means the fee of $100,000
      payable by the Vendor to the Purchaser in the event that the circumstances
      referred to in section 9.3 hereof arise;

	 	 	 
	 	(pp) 	
      "Third Party" means any individual or
      entity other than the Parties;

	 	 	 
	 	(qq) 	
      "Unit" means the scheme of unitization for
      the production of Petroleum Substances, the unit area established
      thereunder and all property subject to such scheme created pursuant to the
      unit agreements and unit operating agreements including any and all
      amendments thereto, described in Schedule “B”, if any;

	 	 	 
	 	(rr) 	
      "Unit Facilities" means the Unit Interest
      in and to all tangible depreciable property and assets owned and operated
      by the Unit;

	 	 	 
	 	(ss) 	
      "Unit Interest" means the right, title,
      estate and interest of Vendor or Subco described in Schedule “B” in and to
      the Unit; and

	 	 	 
	 	(tt) 	
      "Wells" means the wells identified in
      Schedule “C” and all wells which are or may be used in connection with the
      Petroleum and Natural Gas Rights excluding abandoned wells but otherwise
      including without limitation, producing, shut-in, suspended, water source,
      injection or disposal wells.

	1.2 	
      Schedules and Exhibits

	 	 
		
      The following schedules are attached to, form part of,
      and are incorporated in this Agreement:

	Schedule “A” 	- Lands and Leases 
	Schedule “B” 	- Facilities, Processing Obligations and Units
      and exclusions from Miscellaneous Interests 
	Schedule “C” 	- Wells 
	Schedule “D” 	- Conveyance 
	Schedule “E” 	- Assumed Liabilities
  

		
      These schedules are incorporated herein by reference as
      though contained in the body of this Agreement. Whenever any term or
      condition, whether express or implied, of any schedule conflicts or is at
      variance with any term or condition of the body of this Agreement, the
      latter shall prevail.

	 	 
	1.3 	
      Interpretation Not Affected by
    Headings

	 	 
		
      The division of this Agreement into articles, sections,
      subsections, clauses, subclauses and paragraphs and the provision of
      headings for all or any thereof are for convenience and reference only and
      shall not affect the meaning, interpretation or construction of this
      Agreement.

Page 11 

	1.4 	
      Included Words

	 	 
		
      When the context reasonably permits, words suggesting the
      singular shall be construed as suggesting the plural and vice versa, and
      words suggesting gender or gender neutrality shall be construed as
      suggesting the masculine, feminine and neutral genders.

	 	 
	1.5 	
      Headings

	 	 
		
      The expressions "Article", "section", "subsection",
      "clause", "subclause", "paragraph" and "Schedule" followed by a number or
      letter or combination thereof mean and refer to the specified article,
      section, subsection, clause, subclause, paragraph and schedule of or to
      this Agreement.

	 	 
	1.6 	
      Statutory References

	 	 
		
      Any reference herein to a statute shall include and shall
      be deemed to be a reference to such statute and to the regulations made
      pursuant thereto, and all amendments made thereto and in force from time
      to time, and to any statute or regulation that may be passed which has the
      effect of supplementing or superseding the statute so referred to or the
      regulations made pursuant thereto.

	 	 
	1.7 	
      Invalidity of Provisions

	 	 
		
      If any of the provisions of this Agreement should be
      determined to be invalid, illegal or unenforceable in any respect, the
      validity, legality or enforceability of the remaining provisions herein
      shall not in any way be affected or impaired thereby.

	 	 
	1.8 	
      Knowledge or Awareness

	 	 
		
      Where in this Agreement a representation or warranty is
      made on the basis of the knowledge information, belief or awareness of a
      Party, such knowledge, information or belief or awareness consists only of
      the actual knowledge or awareness, as the case may be, of the current
      officers, and employees of such Party whose normal responsibilities relate
      to the subject matter of the representation or warranty, after having made
      due and commercially reasonable inquiries which the Parties hereto
      covenant that they will cause such of their respective officers and
      employees to make, and does not include knowledge, information or belief
      and awareness of any other person or persons.

	 	 
	2. 	
      PURCHASE AND SALE AND CLOSING

	 	 
	2.1 	
      Purchase and
Sale

	 	(a) 	
      Vendor and Subco agree to sell, assign, set over, convey
      and transfer to Purchaser and Purchaser agrees to acquire and purchase
      from Vendor and Subco,

	 	 	 	 
	 		(i) 	
      all the right, title, estate and interest of Vendor and
      Subco (whether absolute or contingent, legal or beneficial) in and to the
      Assets relating to the Harmon Valley Property;

	 	 	 	 
	 		(ii) 	
      all the right, title, estate and interest of Vendor and
      Subco (whether absolute or contingent, legal or beneficial) in and to the
      Assets relating to the Woking Property; and

Page 12 

	 	(iii) 	
      such percentage of the right, title, estate and interest
      of Vendor and Subco (whether absolute or contingent, legal or beneficial)
      in and to the Assets relating to the Saskatchewan Property that would
      provide the Purchaser with a 60% interest in those Assets upon completion
      of the transactions contemplated herein (i.e. in the Assets relating to
      the Saskatchewan Property, upon completion of the transactions
      contemplated herein the Purchaser will have a 60% interest, Vendor will
      have a 25% interest and a third party will have a 15%
  interest);

	 		
      by payment of the Purchase Price by the Purchaser to the
      Vendor, subject to and in accordance with the terms of this
    Agreement.

	 	 	 
	 	(b) 	
      Purchaser acknowledges that the third party that
      currently has an interest in the Assets relating to the Saskatchewan
      Property has the right, upon satisfaction of certain conditions, to
      acquire an additional 10% interest in the Assets relating to the
      Saskatchewan Property and agrees with the Vendor that, if such right is
      properly exercised by that third party, such interest will be acquired
      from the Purchaser’s interest such that , upon transfer of that additional
      10% interest the Purchaser will have a 50% interest, Vendor will have a
      25% interest and the third party will have a 25% interest). Any payment by
      that third party, or any assignee, shall be for the account of the
      Purchaser.

	2.2 	
      Purchase Price

	 	 	 
		(a) 	
      The Purchase Price for the Assets shall be equal to
      $21,000,000 (in Canadian dollars) less any assumed liabilities, such
      Purchase Price payable via the issuance of Common Shares at a deemed price
      per Common Share equal to the lesser of $2.00 and the price at which the
      Common Shares (or securities exchangeable for Common Shares) are issued
      pursuant to the Arch Subsequent Financing.

	 	 	 
		(b) 	
      The Purchaser shall also issue to the Vendor 2,000,000
      Series A Performance Warrants, each of which shall be exchangeable for no
      additional consideration into one Common Share at any time on or before
      the date that is 3 years from the Closing Time upon the issuance of a
      report conforming to the requirements of NI 51-101 for the Harmon Valley
      Property reporting the existence of at least 30 million barrels of “3P”
      (i.e. proven plus probable plus possible) gross oil reserves and each of
      which shall be non-transferable except as contemplated herein.

	 	 	 
		(c) 	
      The Purchaser shall also issue to the Vendor 1,000,000
      Series B Performance Warrants, each of which shall be exchangeable for no
      additional consideration into one Common Share at any time on or before
      the date that is 3 years from the Closing Time upon the issuance of a
      report conforming to the requirements of NI 51-101 for the Harmon Valley
      Property reporting the existence of at least 50 million barrels of “3P”
      (i.e. proven plus probable plus possible) gross oil reserves and each of
      which shall be non-transferable except as contemplated herein.

	 	 	 
		(d) 	
      Each of the Purchaser and the Vendor acknowledge that the
      sale of the Assets associated with the Saskatchewan Property will be
      subject to withholding tax under applicable Canadian tax legislation and
      that such withholding tax will be deducted from the consideration paid by
      the Purchaser to the Vendor for such Assets prior to such payment being
      made.

Page 13 

	2.3 	
      Closing

	 	 	 
		
      Closing shall take place at the Place of Closing at the
      Closing Time if there has been satisfaction or waiver of the all of the
      conditions of Closing contained in this Agreement. Subject to all other
      provisions of this Agreement, possession, risk and beneficial ownership of
      Vendor's and Subco’s interest in and to the Assets shall pass from Vendor
      and Subco to Purchaser at the Closing Time and Purchaser shall not be
      entitled to claim ownership of the Assets until the Closing
Time.

	 	 	 
	2.4 	
      Form of Payment

	 	 	 
		
      All payments to be made pursuant to this Agreement shall
      be in securities of the Purchaser via the delivery of certificates
      representing such securities. Subject to the adjustments provided for
      herein, the Purchase Price shall be paid and satisfied at Closing via the
      delivery of the Common Shares, Series A Performance Warrants and Series B
      Performance Warrants as described in 2.2 (a), (b), and (c), as directed by
      the Vendor.

	 	 	 
	2.5 	
      Limited Assumption of Liabilities

	 	 	 
		(a) 	
      Subject to the provisions of Sections 6.2, 6.3 and 6.4
      hereof, at Closing, Purchaser shall assume and/or waive (as the case may
      be) (i) the obligations and liabilities arising after the Effective Date
      under the Contracts; and (ii) the Assumed Liabilities. It is not the
      intention of the Parties that the assumption by Purchaser of the Assumed
      Liabilities shall in any way enlarge the rights of any third parties
      relating thereto. Nothing contained herein shall prevent Purchaser from
      contesting any of the Assumed Liabilities with any third party
    obligee

	 	 	 
		(b) 	
      Except as otherwise expressly provided in this Agreement,
      Purchaser does not assume, agree to pay, perform or discharge or otherwise
      have any responsibility for any other obligation or liability of Vendor or
      Subco, including, without limitation, any account payable not included in
      the Assumed Liabilities, (whether fixed, contingent, unliquidated,
      absolute or otherwise) and whether arising or to be performed prior to, on
      or after the Adjustment Date and Vendor or Subco shall pay, perform or
      discharge, as appropriate, all such obligations and liabilities.

	 	 	 
	2.6 	
      Tax Allocation

	 	 	 
		
      The Parties shall allocate the Purchase Price amongst the
      Assets as follows:

	 	 	 
		(a) 	
      For the Woking Property:

	 	(i)	Petroleum and Natural Gas Rights
    	$1,000,000 
	 	 	 	 
	 	(ii)	Tangibles 	$100,000 
	 	 	 	 
	 	(iii)	Miscellaneous Interests 	$0 
	 	 	 	 
	 	 	TOTAL 	$1,100,000 

	 	(b) 	
      For the Harmon Valley Property:

Page 14 

	 	(iii) 	Petroleum and
      Natural Gas Rights 	$19,695,000

	 	 	 	 
	 	(iv) 	Tangibles 	$190,000 
	 	 	 	 
	 	(iii) 	Miscellaneous
      Interests 	$0 
	 	 	 	 
	 		TOTAL 	$19,885,000
  

	 	(a) 	
      For the Saskatchewan
Property:

	 	(v) 	Petroleum and
      Natural Gas Rights 	$15,000 
	 	 	 	 
	 	(vi) 	Tangibles 	$0 
	 	 	 	 
	 	(iii) 	Miscellaneous
      Interests 	$0 
	 	 	 	 
	 		TOTAL 	$15,000
  

		
      Each of the Vendor and Subco, as applicable, and the
      Purchaser agree to co-operate in the filing of such elections under the
      Income Tax Act (Canada) and other taxation statutes as may be
      necessary or desirable to give effect to such allocation for tax
      purposes.

	 	 	 
	2.7 	
      Other Taxes

	 	 	 
		
      At Closing, Purchaser shall pay to Vendor any GST payable
      in respect of the Assets (excluding the Petroleum and Natural Gas Rights),
      which Vendor shall remit according to law. The GST registration number of
      Vendor is __________________. At Closing, Purchaser shall be solely
      responsible for any provincial sales tax pertaining to its acquisition of
      the Assets and shall remit any such taxes to the applicable governmental
      authority according to law.

	 	 	 
		
      Notwithstanding the foregoing, the Vendor and Subco, as
      applicable, and the Purchaser will on or before Closing jointly execute an
      election, in the prescribed form and containing the prescribed information
      to have subsection 167(1.1) of the Excise Tax Act (Canada) apply to
      the sale and purchase of the Assets associated with each of the Woking
      Property and the Harmon Valley Property. The Purchaser will file such
      election with the Minister of National Revenue within the time prescribed
      by the Excise Tax Act (Canada). In the event that the Minister of
      National Revenue determines that GST is payable in respect of the sale of
      the Woking Property or the Harmon Valley Property as contemplated by this
      Agreement, the Purchaser shall be responsible for, and hereby indemnifies
      and saves the Vendor and Subco harmless from and against, the payment of
      the same together with all penalties and interest the Canada Revenue
      Agency may assess against the Vendor or Subco. The covenants contained in
      this paragraph shall survive the completion of the within purchase and
      sale transaction.

	 	 	 
		
      The parties acknowledge that GST will be payable with
      respect to the sale of the Assets associated with the Saskatchewan
      property.

	 	 	 
	2.8 	
      Dividend of Common Shares, Series A Performance
      Warrants, and Series B Performance Warrants

	 	 	 
		(a) 	
      The Vendor agrees to, forthwith upon the later of the
      Closing and the time of the Common Shares, Series A Performance Warrants,
      Series B Performance Warrants and

Page 15 

	 		
      the Common Shares underlying the Series A Performance
      Warrants and Series B Performance Warrants are registered for distribution
      in the United States as contemplated by section 2.8(b) below, dividend out
      such securities delivered to the Vendor pursuant to this Agreement to the
      holders of the common shares of Source on a pro rata basis.

	 	 	 
	 	(b) 	
      The Vendor and the Purchaser both acknowledge that, to
      distribute the Common Shares, Series A Performance Warrants, Series B
      Performance Warrants and the Common Shares underlying the Series A
      Performance Warrants and Series B Performance Warrants received by the
      Vendor to the Vendor’s shareholders as contemplated in section 2.8(a), the
      Purchaser will be required to register such securities for distribution in
      the United States via the filing of a registration statement on Form F-1
      (or similar forms) as required pursuant to Staff Legal Bulletin No. 4
      issued by the United States Securities and Exchange Commission, or obtain
      an exemption from such requirements. As a result of this requirement, the
      Vendor agrees to take all commercially reasonably steps necessary to
      prepare and submit all necessary filings with the United States Securities
      and Exchange Commission on behalf of the Purchaser to qualify such
      securities for distribution in the United States as contemplated in
      section 2.8(a), or obtain an exemption from such requirements. The
      Purchaser agrees to provide the Vendor with all commercially reasonable
      assistance in order to allow the Vendor to satisfy the obligations
      referred to in this section 2.8 (b). The Purchaser agrees that, upon
      receipt by the Purchaser from the Vendor of copies of applicable and
      appropriate invoices from third parties for services rendered, the
      Purchaser will reimburse the Vendor for all reasonable expenses incurred
      by the Vendor in satisfying the Vendor’s obligations referred to in this
      section, provided that the Vendor shall have received the prior written
      approval of the Purchaser for such expenses prior to such expenses being
      incurred.

	 	 	 
	 	(c) 	
      In the event that the Common Shares, Series A Performance
      Warrants and Series B Performance Warrants, including the Common Shares
      issuable pursuant to the Series A Performance Warrants and Series B
      Performance Warrants, are not qualified for distribution in the United
      States upon completion of the transaction contemplated by this Agreement,
      or an exemption from such requirements has not been obtained, the
      Purchaser and the Vendor agree that they shall continue to use all
      commercially reasonably efforts to qualify such securities for
      distribution in the United States, or obtain an exemption from such
      requirements.

	 	 	 
	 	(d) 	
      The Vendor further agrees that, until such time as the
      Common Shares, Series A Performance Warrants and Series B Performance
      Warrants have been distributed to the Vendor’s shareholders as
      contemplated in section 2.8(a), it shall not trade such securities held by
      it, including the Common Shares issuable pursuant to the Series A
      Performance Warrants and Series B Performance Warrants, and it shall not
      take any action to vote the Common Shares held by it, including the Common
      Shares issuable pursuant to the Series A Performance Warrants and Series B
      Performance Warrants.

	 	 	 
	 	(e) 	
      The Purchaser acknowledges that, upon qualification of
      the Common Shares, Series A Performance Warrants and Series B Performance
      Warrants for distribution in the United States as contemplated above, it
      will be subject to certain continuous disclosure filing requirements and
      obligations under applicable securities legislation in the United
      States.

	 	 	 
	 	(f) 	
      The Vendor acknowledges and agrees that Purchaser may
      complete a reverse take over transaction with another issuer prior to or
      concurrently with the completion of the

Page 16 

transaction contemplated in this
Agreement. In such event, the rights and obligations of the Purchaser hereunder
will be assigned to, or assumed by, the Successor Issuer.

	3. 	
      DOCUMENTS, RECORDS AND SPECIFIC
      CONVEYANCES

	 	 	 	 
	3.1 	
      Delivery of Data

	 	 	 	 
		
      Vendor and Subco shall deliver to Purchaser at Closing or
      forthwith thereafter the original copies of the Leases and any other
      agreements and documents to which the Assets are subject and the original
      copies of contracts, agreements, correspondence, records, books,
      documents, licences, permits, approvals, reports and data comprising
      Miscellaneous Interests which are now in the possession of Vendor or Subco
      or of which it gains possession prior to Closing, all in an organized
      form. Notwithstanding the foregoing, if and to the extent such Leases,
      contracts, agreements, correspondence, records, books, documents,
      licences, reports and data also pertain to interests other than the
      Assets, photocopies or other copies may be provided to Purchaser in lieu
      of original copies. Vendor or Subco may retain photocopies of all Leases,
      contracts, agreements, correspondence, records, books, documents,
      licences, reports and data, at its sole cost and expense. Vendor and Subco
      may review the Leases, contracts, agreements, correspondence, records,
      books, documents, licences, reports and data provided to Purchaser after
      Closing to the extent required by Third Party requirements.

	 	 	 	 
	3.2 	
      Conveyances and Joint Obligations

	 	 	 	 
		
      Vendor and Subco shall prepare the Specific Conveyances
      none of which shall confer or impose upon a Party any greater right or
      obligation than contemplated in this Agreement. All such Specific
      Conveyances shall be executed and delivered by the Parties at Closing. It
      shall not be necessary for the Specific Conveyances to have been executed
      prior to or at Closing by any Third Parties except for any affiliate or
      broker holding legal title on behalf of Vendor or Subco. Forthwith after
      Closing with the cooperation of Purchaser, Vendor and Subco shall
      circulate and register, as the case may be, all Specific Conveyances that
      by their nature may be circulated or registered. All costs of registration
      of the Specific Conveyances, including without limiting the generality of
      the foregoing, all transfers of caveats, well, facility and pipeline
      licence transfers, assignments of dispositions and any associated security
      deposits shall be for Purchaser's account.

	 	 	 	 
	3.3 	
      Arbitration

	 	 	 	 
		(a) 	
      Reference to Arbitration

	 	 	 	 
			(i) 	
      In respect of matters referred to arbitration under
      section 5.1, the Parties shall select an arbitrator within two (2)
      Business Days of the Closing Time.

	 	 	 	 
			(ii) 	
      In respect of any other matters referred to arbitration
      under this Agreement, the Parties shall select an arbitrator within two
      (2) Business Days of the date the matter is referred to
  arbitration.

	 	 	 	 
			(iii) 	
      If the arbitration is with respect to the existence of a
      title defect, the arbitrator shall be a recognized oil and gas lawyer in
      private practice in Calgary, Alberta who does not represent either
      Party.

Page 17 

	 	(iv) 	
      If the arbitration is with respect to the value allocated
      to a title defect, the arbitrator shall be a firm of recognized,
      independent reservoir engineering consultants carrying on business in
      Calgary, Alberta.

	 	 	 
	 	(v) 	
      If the Parties cannot reasonably agree on the appointment
      of an arbitrator, the Parties shall each appoint an umpire who shall
      appoint an arbitrator. If the umpires are unable to agree on an arbitrator
      or if one of the Parties fails to comply with the provisions of this
      section 3.4, either Party may apply to a judge of the Court of Queen's
      Bench of Alberta for the appointment of an
arbitrator.

	 	(b) 	
      Proceedings

	 	 	 	 
	 		(i) 	
      The Parties shall, within two (2) Business Days of the
      date of selection of the arbitrator, each deliver to the arbitrator a
      written statement respecting the matter in dispute to the arbitrator,
      including such Party's proposed resolution. The arbitrator shall be
      required to accept one of such resolutions. If only one of the Parties
      submits a written resolution, the arbitrator shall be required to accept
      the resolution proposed by such Party.

	 	 	 	 
	 		(ii) 	
      The arbitrator shall be instructed to render his decision
      not later than five (5) Business Days after his appointment and shall
      communicate such decision to the Parties.

	 	 	 	 
	 		(iii) 	
      If the arbitrator accepts Vendor's or Subco’s proposal,
      Purchaser shall pay the fees and expenses of the arbitrator and if the
      arbitrator selects Purchaser's proposal, Vendor shall pay the fees and
      expenses of the arbitrator. The decision of the arbitrator shall be final
      and binding on the Parties and not subject to review.

	 	 	 	 
	 		(iv) 	
      Except to the extent modified in this article, the
      arbitrator shall conduct any arbitration hereunder pursuant to the
      provisions of the Arbitration Act
(Alberta).

	4. 	
      INTERIM OPERATIONS

	 	 
	4.1 	
      Maintenance of the Assets

	 	 
		
      Until the earlier of the Closing Time or the termination
      of this Agreement, Vendor and Subco shall, to the extent that the nature
      of its interest permits and subject to the Leases and any other agreements
      and documents to which the Assets are subject: maintain the Assets in a
      proper and prudent manner in accordance with good oil and gas industry
      practices, including maintaining current insurance policies, if any, and
      in material compliance with all applicable Regulations; pay or cause to be
      paid all costs and expenses relating to the Assets which become due from
      the date hereof to the Closing Time; perform and comply with all covenants
      and conditions in the Leases and any other agreements and documents to
      which the Assets are subject, and forward to Purchaser any AFE’s that
      Vendor or Subco receives in respect of the Assets after the date
      hereof.

	 	 
	4.2 	
      Consent of Purchaser

	 	 
		
      Notwithstanding section 4.1, Vendor and Subco shall not,
      until the earlier of the Closing Time or the termination of this
      Agreement, without the prior written consent of Purchaser, which
      consent

Page 18 

shall not be unreasonably withheld or
delayed by Purchaser and which, if provided, will be provided in a timely
manner: 

	 	(a) 	
      make any commitment or propose, initiate or authorize any
      expenditure with respect to the Assets in which Vendor's or Subco’s share
      is in excess of $25,000 except in case of emergency or in respect of
      amounts which Vendor or Subco may be committed to expend or be deemed to
      authorize for expenditure without its consent. Purchaser acknowledges that
      certain operating agreements may bind Vendor, Subco or Purchaser, or any
      of them, to make or pay for expenditures, notwithstanding that Vendor,
      Subco or Purchaser may not have voted in favour of or may have voted
      against the particular expenditure or expenditures;

	 	 	 
	 	(b) 	
      sell, transfer, surrender, abandon, dispose of, mortgage
      or otherwise encumber any of the Assets, excepting sales of Petroleum
      Substances produced from the Lands in the ordinary course of
    business;

	 	 	 
	 	(c) 	
      amend or terminate any Leases or any other agreement or
      document to which the Assets are subject, or enter into any new agreement
      or commitment relating to the Assets; or

	 	 	 
	 	(d) 	
      resign or take any action which would result in Vendor's
      resignation or replacement as operator of any of the Lands or the
      Petroleum and Natural Gas Rights.

	5. 	
      APPORTIONMENTS

	 	 	 
	5.1 	
      Apportionments

	 	 	 
		(a) 	
      Except as provided below in this article 5, the net
      amount of all benefits and obligations of every kind and nature relating
      to the ownership and operation of the Assets and accruing in respect of
      the Assets including, without limitation, rentals, drilling penalties,
      property taxes, maintenance, development, capital and operating costs, the
      proceeds from the sale of production, injected Petroleum Substances and
      revenues from processing and transportation fees charged to Third Parties,
      shall be apportioned between the Parties as of the Adjustment Date on an
      accrual basis in accordance with generally accepted accounting
      principles.

	 	 	 
		(b) 	
      Proceeds (net of royalties) from the sale of Petroleum
      Substances attributable to the Petroleum and Natural Gas Rights produced
      between the Adjustment Date and the Closing Time shall be for the account
      of Purchaser. Purchaser shall be obligated to pay royalties on Petroleum
      Substances that are not beyond the wellhead on and after the Closing
      Time.

	 	 	 
		(c) 	
      Without limiting section 5.1(a), in the apportionment
      hereunder, Vendor shall receive a credit from Purchaser for an amount
      equal to all unexpended cash call advances, operating funds, and similar
      advances made by Vendor to operators in respect of the Assets. In cases
      where Vendor is the operator of the Assets, or any portion thereof, Vendor
      shall, at its option, either refund such funds and advances it has
      received as operator for which expenses have not been incurred or accrued
      to the applicable joint venture parties or transfer such funds to
      Purchaser. In respect of any of such funds transferred to Purchaser,
      Vendor shall receive a credit from Purchaser for the amount of any such
      funds and Purchaser shall hold such funds as trustee on behalf of the
      Third

Page 19 

	 		
      Parties that paid such funds subject to the terms of the
      agreements under which such funds were paid.

	 	 	 	 
	 	(d) 	
      An interim accounting of all apportionments required
      under this article shall be carried out by the Parties for Closing based
      upon Vendor's best estimate of such apportionments (based upon information
      then available) and the net apportionment pursuant to this article based
      upon such accounting shall be paid at Closing. A statement setting out the
      above interim accounting shall be delivered by Vendor to Purchaser no
      later than two (2) Business Days prior to Closing. Vendor shall assist
      Purchaser in verifying the amounts set forth in such interim statements of
      adjustments.

	 	 	 	 
	 	(e) 	
      A final accounting of all apportionments pursuant to this
      article shall be carried out within ninety (90) days following the Closing
      Time. Purchaser shall pay to Vendor, or Vendor shall pay to Purchaser, as
      the case may be, the net cash amount owing in respect of the
      apportionments as specified in the final accounting within thirty (30)
      days of completion of the accounting. Subject to sections 5.1(f) and
      5.1(g), the Parties shall not be obligated to make any adjustments after
      such ninety (90) day period unless such adjustment has been specifically
      requested, by notice, within such period. All adjustments shall be settled
      by payment by the Party required to make payment hereunder within thirty
      (30) days of being notified of each such apportionment being agreed upon.
      All overdue payments hereunder shall be payable with interest calculated
      at the Prime Rate plus one per cent (1.0%).

	 	 	 	 
	 	(f) 	
      For a period of two hundred and seventy (270) days
      following the Closing Time, Purchaser may give Vendor notice that it
      wishes to audit the books, records and accounts of Vendor respecting the
      Assets for the purpose of ascertaining, verifying or effecting adjustments
      pursuant to this article. Such audit shall be conducted upon reasonable
      notice to Vendor at its offices during normal business hours, and shall be
      conducted at the sole expense of Purchaser. Any claims or discrepancies
      disclosed by such audit shall be made in writing to Vendor within one (1)
      month following the completion of such audit, and Vendor shall respond in
      writing to any claims or discrepancies within two (2) months of the
      receipt of such claims. To the extent that the Parties are unable to
      resolve any outstanding claims or discrepancies disclosed by such audit
      within one (1) month of the response of Vendor, such audit exceptions
      shall be resolved by arbitration pursuant to section 3.4.

	 	 	 	 
	 	(g) 	
      Any adjustments resulting from joint venture audits,
      thirteenth month adjustments, plant equalizations, royalty audits or Crown
      royalty audits relating to the Assets:

	 	 	 	 
	 		(i) 	
      relating to the period prior to the Closing Time and for
      which audit queries are outstanding at the Closing Time;

	 	 	 	 
	 		(ii) 	
      that occur after the Closing Time but not later than two
      (2) years after the Closing Time or within the applicable period in the
      governing agreements included in the Miscellaneous Interests, whichever is
      later; or

	 	 	 	 
	 		(iii) 	
      that occur after the Closing Time but not later than two
      (2) years after the Closing Time or within the applicable period specified
      in the governing Leases or Regulations, as applicable, whichever is later,
      in the case of royalty audits or Crown royalty
audits,

Page 20 

	 		
      shall be made as they are established and payment for
      them shall be made by the Party required to make payment hereunder in
      accordance with section 5.1(a) within thirty (30) days of being notified
      in writing of the determination of the amount owing.

	 	 	 
	 	(h) 	
      GST shall be payable with respect to apportionments where
      required by law and paid accordingly by the applicable Party.

	 	 	 
	 	(i) 	
      Either Party may, at any time, refer to arbitration
      pursuant to section 3.4, a dispute between the Parties respecting the
      requirement for or the amount of an adjustment pursuant to the provisions
      of this article.

	 	 	 
	 	(j) 	
      The Parties confirm Vendor shall claim all revenue and
      expenses relating to the Assets prior to the Closing Time and shall be
      responsible for any income taxes relating thereto. Nothing contained in
      this article shall impose any liability on any Party for the income tax
      liability of the other Party.

	 	 	 
	 	(k) 	
      The assets do not include deposits made by Vendor which
      relate to the Assets on cash call advances, operating fund payments or
      similar advances made by Vendor to an operator of the Assets. Such amounts
      shall, at the option of Vendor, either be returned to Vendor and (if
      required) replaced by Purchaser or be transferred by Vendor to Purchaser,
      in which event Purchaser shall reimburse the amount thereof to
    Vendor.

	6. 	
      CLOSING

	 	 	 
	6.1 	
      Vendor's and Subco’s Closing
    Conditions

	 	 	 
		
      The obligation of Vendor and Subco to sell its interest
      in and to the Assets is subject to the following conditions
    precedent:

	 	 	 
		(a) 	
      the representations and warranties of Purchaser contained
      in this Agreement shall be true in all material respects when made and as
      of the Closing Time;

	 	 	 
		(b) 	
      Purchaser shall have delivered the certificates
      representing the Common Shares, Series A Performance Warrants, and Series
      B Performance Warrants referred to in subsection 2.4 hereof to Vendor,
      free and clear of all Encumbrances;

	 	 	 
		(c) 	
      all obligations of Purchaser contained in this Agreement
      to be performed or satisfied prior to or at Closing shall have been timely
      performed and satisfied in all material respects;

	 	 	 
		(d) 	
      Vendor being satisfied, acting reasonably, that the
      relevant regulatory board or agency will approve the transfer to Purchaser
      of well licences and other licences and permits pertaining to the Assets
      that are currently registered in the name of Vendor or Subco;

	 	 	 
		(e) 	
      if required by applicable law or applicable regulatory
      authorities, the shareholders of the Vendor shall have approved of the
      transaction contemplated by this Agreement;

	 	 	 
		(f) 	
      if required by law or applicable regulatory authorities,
      the shareholders of the Purchaser, or any applicable Successor Issuer,
      shall have approved of the transaction contemplated by this
    Agreement;

Page 21 

	 	(g) 	
      the Vendor having obtained the necessary consents from
      third parties for the assignment of any contracts, agreements or permits
      relating to the Assets;

	 	 	 
	 	(h) 	
      no material adverse change (excluding changes relating to
      matters affecting the oil and gas sector in general and other matters
      disclosed to and acceptable to the Vendor) shall have occurred in respect
      of the Purchaser or its assets;

	 	 	 
	 	(i) 	
      there will have been no change with respect to the income
      tax laws or policies of Canada which would have a material adverse effect
      on the Vendor or the shareholders of the Vendor as a result of the
      completion of the transaction contemplated by this Agreement;

	 	 	 
	 	(j) 	
      the transaction contemplated by this Agreement shall have
      been completed not later than November 30, 2007 or a later date to be
      mutually agreed upon by the Vendor and the Purchaser;

	 	 	 
	 	(k) 	
      the Vendor shall have received from the Purchaser
      evidence indicating that upon completion of the transaction contemplated
      by this Agreement, or forthwith thereafter, the Purchaser shall have at
      least $10,000,000 in working capital;

	 	 	 
	 	(l) 	
      the Common Shares to be issued to the Vendor as
      consideration for the Assets, and to be issued in exchange for the Series
      A Performance Warrants and Series B Performance Warrants, shall, when
      distributed by the Vendor to its shareholders by way of a dividend, be
      freely tradable in Canada absent any resale restrictions except for any
      escrow provisions which may be required by an applicable securities
      regulatory authority in Canada including, but not limited to, any stock
      exchange upon which the Common Shares may be listed or conditionally
      approved for listing; and

	 	 	 
	 	(m) 	
      the Common Shares to be issued to the Vendor as
      consideration for the Assets, and to be issued in exchange for the Series
      A Performance Warrants and Series B Performance Warrants, shall be listed
      or conditionally approved for listing on a recognized Canadian stock
      exchange.

		
      The conditions precedent contained in this section shall
      be for the sole and exclusive benefit of Vendor and may, without prejudice
      to any of the rights of Vendor contained in this Agreement (including
      reliance on or enforcement of the representations, warranties or covenants
      which are preserved dealing with or similar to the condition or conditions
      waived), be waived by Vendor in writing, in whole or in part, at any time.
      In the event that any one of the foregoing conditions is not satisfied or
      waived by Vendor, at or before the Closing Time, Vendor, on behalf of
      itself andSubco, may, in addition to any other remedies which it may have
      available to it, rescind this Agreement by written notice to Purchaser. If
      Vendor rescinds this Agreement, Purchaser and Vendor and Subco shall be
      released and discharged from all obligations hereunder except as provided
      in sections 6.3, 9.3 and 9.4.

	 	 	 
	6.2 	
      Purchaser's Closing Conditions

	 	 	 
		
      The obligation of Purchaser to purchase Vendor's and
      Subco’s interest in and to the Assets is subject to the following
      conditions precedent which are inserted herein and made a part hereof for
      the exclusive benefit of Purchaser and may be waived by
  Purchaser:

	 	 	 
		(a) 	
      the representations and warranties of Vendor and Subco
      contained in this Agreement shall be true in all material respects when
      made and as of the Closing Time;

Page 22 

	 	(b) 	
      all obligations of Vendor and Subco contained in this
      Agreement to be performed and satisfied prior to or at Closing shall have
      been timely performed and satisfied in all material respects;

	 	 	 
	 	(c) 	
      from January 1, 2007 to the Closing Time, the Assets
      shall have suffered no material adverse damage or change provided however
      variations in the price at which Petroleum Substances may be sold or the
      rate of production of Petroleum Substances from the Lands shall not be
      considered material adverse damage or change;

	 	 	 
	 	(d) 	
      Vendor and Subco shall have delivered to Purchaser at or
      prior to Closing either registerable discharges or no interest letters (in
      a form satisfactory to Purchaser) for all Security Interests encumbering
      the Assets which are requested by Purchaser a reasonable time prior to
      Closing;

	 	 	 
	 	(e) 	
      if required by applicable law or applicable regulatory
      authorities, the shareholders of the Vendor shall have approved of the
      transaction contemplated by this Agreement;

	 	 	 
	 	(f) 	
      if required by law or applicable regulatory authorities,
      the shareholders of the Purchaser, or any applicable Successor Issuer,
      shall have approved of the transaction contemplated by this
    Agreement;

	 	 	 
	 	(g) 	
      there will have been no change with respect to the income
      tax laws or policies of Canada which would have a material adverse effect
      on the Purchaser or the shareholders of the Purchaser as a result of the
      completion of the transaction contemplated by this Agreement;

	 	 	 
	 	(h) 	
      the transaction contemplated by this Agreement shall have
      been completed not later than November 30, 2007 or a later date to be
      mutually agreed upon by the Vendor and the Purchaser;

	 	 	 
	 	(i) 	
      there shall be an exemption from the prospectus and
      registration requirements in Canada for the distribution of the Common
      Shares to be issued to the Vendor as consideration for the Assets, and to
      be issued in exchange for the Series A Performance Warrants and Series B
      Performance Warrants, and such securities shall, when issued be freely
      tradable in Canada absent any resale restrictions except for any escrow
      provisions which may be required by an applicable securities regulatory
      authority in Canada including, but not limited to, any stock exchange upon
      which the Common Shares may be listed or conditionally approved for
      listing;

	 	 	 
	 	(j) 	
      the Common Shares to be issued to the Vendor as
      consideration for the Assets, and to be issued in exchange for the Series
      A Performance Warrants and Series B Performance Warrants, shall be listed
      or conditionally approved for listing on a recognized Canadian stock
      exchange; and

	 	 	 
	 	(k) 	
      the Purchaser shall have received, at its own expense,
      opinions of title on the Assets satisfactory to the Purchaser in its sole
      discretion acting reasonably.

The conditions precedent contained in
this section shall be for the sole benefit of Purchaser and may, without
prejudice to any of the rights of Purchaser contained in this Agreement
(including reliance on or enforcement of the representations, warranties or
covenants which are preserved dealing with or similar to the condition or
conditions waived), be waived by Purchaser in writing, 

Page 23 

		
      in whole or in part, at any time. In the event that any
      one of the foregoing conditions is not satisfied or waived by Purchaser,
      at or before the Closing Time, Purchaser may, in addition to any other
      remedies which it may have available to it, rescind this Agreement by
      written notice to Vendor. If Purchaser rescinds this Agreement, Purchaser
      and Vendor and Subco shall be released and discharged from all obligations
      hereunder except as provided in sections 6.3 and 9.4.

	 	 
	6.3 	
      Efforts to Fulfill Conditions
    Precedent

	 	(a) 	 Purchaser and Vendor and Subco shall proceed
        diligently and in good faith and use commercially reasonable efforts to
        satisfy and comply with and assist in the satisfaction and compliance
        with the conditions precedent.

	 	 	 	 	 	 
	 	(b) 	 To expand on the foregoing obligation referred
        to in section 6.3(a) but not to limit such obligation in any way:

	 	 	 	 	 	 
			(i) 	 each Party will provide commercially reasonable
        assistance to the other Party, at its own expense, to allow such other
        Party to comply with any and all disclosure requirements which such other
        Party may have under applicable corporate and securities legislation,
        or pursuant to the direction of any applicable securities regulatory authority
        such as the United States Securities and Exchange Commission, the TSX
        Venture Exchange or the Toronto Stock Exchange, as a result of this Agreement
        and the transactions contemplated hereby including providing any and all
        such information and documentation, in a timely and expeditious manner,
        as may be reasonably requested by the other Party, and any amendments
        or supplements thereto, in each case complying in all material respects
        with all applicable legal requirements on the date of issue thereof;

	 	 	 	 	 	 
			(ii) 	 Each Party shall indemnify and save harmless
        the other Party and its directors, officers and agents from and against
        any and all liabilities, claims, demands, losses, costs, damages and expenses
        (excluding any loss of profits or consequential damages) to which such
        other Party, or any of its subsidiaries, or any director, officer or agent
        thereof, may be subject or which the other Party, or any of its subsidiaries,
        or any director, officer or agent thereof may suffer, whether under the
        provisions of any statute or otherwise, in any way caused by, or arising,
        directly or indirectly, from or in consequence of:

	 	 	 	 	 	 
				(A) 	 any misrepresentation or alleged misrepresentation
        in the information or documentation provided by the first Party to the
        other Party and with the approval (such approval not to be unreasonably
        withheld) included:

	 	 	 	 	 	 
					(I) 	 in a disclosure document of the other Party; or

	 	 	 	 	 	 
					(II) 	 in any material filed in compliance or intended compliance
        with any applicable laws;

	 	 	 	 	 	 
				(B) 	 any order made or any inquiry, investigation
        or proceeding by any securities commission or other competent authority
        based upon any untrue statement or omission or alleged untrue statement
        or omission of a material fact or any misrepresentation or any alleged
        misrepresentation in the information or documentation provided by the
        first Party to the

Page 24 

other Party and with the approval
(such approval not to be unreasonably withheld) included:

	 	(I) 	
      in a disclosure document of the other Party; or

	 	 	 
	 	(II) 	
      in any material filed in compliance or intended
      compliance with any applicable laws; and

	 	(C) 	
      the other Party not complying with any requirement of
      applicable laws in connection with the transactions contemplated in this
      Agreement;

except that the first Party shall not
be liable to the other Party in any such case to the extent that any such
liabilities, claims, demands, losses, costs, damages and expenses arise out of
or are based upon any misrepresentation or alleged misrepresentation of a
material fact based solely on information or documentation relating the other
Party included in such documents or material or the negligence of the other
Party. 

	6.4 	
      Assigned Contracts

	 	 	 
		
      The Vendor and Subco shall use its commercially
      reasonable efforts to assign its rights under any Contract included in the
      Assets and, to the extent that Vendor 's or Subco’s rights under any
      Contract included in the Assets, or under any other Asset to be assigned
      to Purchaser hereunder, may not be assigned without the consent of another
      person which has not been obtained by Vendor or Subco prior to the Closing
      Date, neither this Agreement nor any of the instruments of transfer
      delivered to Purchaser shall constitute an agreement to assign the same if
      an attempted assignment would constitute a breach thereof or be unlawful.
      If any such consent has not been obtained or if any attempted assignment
      would be ineffective or would impair Purchaser’s rights under the
      instrument in question so that Purchaser would not in effect acquire the
      benefit of all such rights, then Vendor or Subco, to the maximum extent
      permitted by law and the instrument, shall act as Purchaser’s agent in
      order to obtain for Purchaser the benefits thereunder and shall cooperate,
      to the maximum extent permitted by law and the instrument, with Purchaser
      in any other reasonable arrangement designed to provide such benefits to
      Purchaser (including, without limitation, by entering into an equivalent
      arrangement). Notwithstanding Purchaser's decision to consummate the
      Closing in the absence of any such consent, after the Closing Date, Vendor
      and Subco shall use its commercially reasonable efforts to obtain all such
      consents and, if and when any is obtained, shall promptly assign the
      instrument in question to Purchaser.

	 	 	 
	7. 	
      REPRESENTATIONS AND WARRANTIES

	 	 	 
	7.1 	
      Representations and Warranties of
    Vendor

	 	 	 
		
      Each of Vendor and Subco, jointly and severally, hereby
      represents and warrants to Purchaser at the date hereof and at the Closing
      Time that:

	 	 	 
		(a) 	
      Corporate Standing: Each of Vendor and Subco is,
      and shall remain, a corporation duly organized, validly subsisting and in
      good standing under the laws of its jurisdiction of incorporation and the
      laws of those jurisdictions in which the Assets are located;

	 	 	 
		(b) 	
      Corporate Authority: Each of Vendor and Subco now
      has and shall have at all times material to the transaction contemplated
      hereby, taken all necessary corporate actions and

Page 25 

	 		
      has all requisite power and authority to enter into this
      Agreement and the other agreements and documents required to be delivered
      by it pursuant hereto, and to perform its obligations under this Agreement
      and the other agreements and documents required to be delivered by it
      pursuant hereto;

	 	 	 	 
	 	(c) 	
      Execution and Enforceability of Documents: This
      Agreement and the other documents and agreements required by it have been
      duly executed and delivered by it and constitute legal, valid, binding and
      enforceable obligations of each of Vendor and Subco;

	 	 	 	 
	 	(d) 	
      No Conflicts: The consummation by each of Vendor
      and Subco of the transaction contemplated herein will not, in any material
      respects, violate or conflict with any of the constating documents,
      by-laws or governing documents of each of Vendor and Subco or any
      provision of any material agreement or instrument to which Vendor or Subco
      is party or by which Vendor, Subco or the Assets is bound, or any
      judgment, decree, order, statute, rule or regulation applicable to Vendor
      or the Assets excluding any consent rights under the agreements comprising
      the Miscellaneous Interests;

	 	 	 	 
	 	(e) 	
      Canadian Resident: Subco is not a
      non-resident of Canada within the meaning of the Income Tax Act
      (Canada) but Vendor is a non-resident of Canada within the
      meaning of the Income Tax Act (Canada);

	 	 	 	 
	 	(f) 	
      Title:

	 	 	 	 
	 		(i) 	
      neither Vendor nor Subco has assigned, mortgaged or in
      any way alienated or encumbered all or any portion of its interest in the
      Assets;

	 	 	 	 
	 		(ii) 	
      neither Vendor nor Subco has done any act or thing and
      nor is aware of any circumstance, matter or thing whereby any of the
      Assets may be cancelled or determined;

	 	 	 	 
	 		(iii) 	
      none of the Petroleum and Natural Gas Rights are subject
      to reduction or conversion by reference to payout of any well or otherwise
      except as noted in Schedule “A”;

	 	 	 	 
	 		(iv) 	
      subject to the rents, covenants, conditions and
      stipulations in the Leases and any other agreements pertaining to the
      Assets and on the lessee's or holder's part thereunder to be paid,
      performed and observed, Purchaser may enter into and upon, hold and enjoy
      the Lands and the Assets for the residue of the respective terms of the
      Leases and all renewals or extensions thereof as to the interests
      hereunder assigned for Purchaser's own use and benefit without any
      interruption of or by Vendor or Subco or any other person whomsoever
      claiming by, through or under Vendor or Subco;

	 	 	 	 
	 		(v) 	
      the Assets will be, at the Closing Time, free and clear
      of all liens, encumbrances and adverse claims created by, through, or
      under Vendor or Subco; and

	 	 	 	 
	 		(vi) 	
      Subco is the owner of the Assets associated with the
      Woking Property and the Harmon Valley Property. Vendor is the owner of the
      Assets associated with the Saskatchewan Property.

Page 26 

	 	(g) 	
      No Knowledge of Defaults: Neither Vendor nor Subco
      has knowledge of, nor has it been informed of, any material default or
      notice of material default relating to the Assets, or any of
  them;

	 	 	 
	 	(h) 	
      No Lawsuits or Claims: To Vendor's or Subco’s
      knowledge there are no material claims, proceedings, actions, lawsuits,
      administrative proceedings or governmental investigations in existence,
      contemplated or threatened against or with respect to the
Assets;

	 	 	 
	 	(i) 	
      Payment of Taxes: To Vendor's or Subco’s
      knowledge, all rentals, royalties and all ad valorem, property,
      production, severance and similar taxes and assessments based on or
      measured by the ownership of the Assets or the production of Petroleum
      Substances from the Lands or the receipt of proceeds therefrom payable by
      Vendor or Subco prior to the Adjustment Date and for all prior years have
      been properly paid and discharged;

	 	 	 
	 	(j) 	
      Compliance: To Vendor's or Subco’s knowledge,
      Vendor and Subco have complied with, performed, observed and satisfied all
      material terms, conditions, obligations and liabilities which have
      heretofore arisen and were the obligations of Vendor or Subco under any of
      the provisions of any agreement affecting the Assets or any then existing
      statute, order, writ, injunction or decree of any governmental agency or
      court relating to the Assets;

	 	 	 
	 	(k) 	
      Documents: It has made all reasonable inquiries
      and searches for material documents and information, and to Vendor's or
      Subco’s knowledge, it has delivered or made available to Purchaser all
      documents, instruments, records and books relevant to Vendor's or Subco’s
      title to the Lands and the Leases and in its possession or to which it has
      reasonable access;

	 	 	 
	 	(l) 	
      Worker's Compensation: The Workers' Compensation
      Board of Alberta, or similar regulatory authority in any other
      jurisdiction in which the assets are located, does not possess and is not
      entitled to a charge on or a lien against the Assets or any of them
      created directly by Vendor or Subco;

	 	 	 
	 	(m) 	
      AFE's: There are no outstanding AFE's or other
      financial commitments in respect of those Assets which are operated by
      Vendor or Subco, nor is there any single outstanding authorization for
      expenditure or other single financial commitment in respect of those
      Assets which are not operated by Vendor or Subco;

	 	 	 
	 	(n) 	
      Production Sales Contracts / Transportation Agreements
      / Processing Obligations: There are no production sales contracts,
      transportation agreements or processing obligations;

	 	 	 
	 	(o) 	
      Operations: To Vendor's or Subco’s knowledge and
      except as disclosed to Purchaser, all operations relating to the Assets
      have been conducted in accordance with good oilfield practice and all then
      existing Regulations and to the best of Vendor's or Subco’s knowledge, it
      has not received any notice of the occurrence of a material violation, and
      is not aware that any material violation is occurring or has occurred, in
      respect of operations relating to the Assets;

	 	 	 
	 	(p) 	
      Environmental: To Vendor's or Subco’s knowledge
      and except as disclosed in writing to Purchaser:

Page 27 

	 	(i) 	
      none of the Assets are subject to any environmental
      action, order, review or investigation of a material nature, whether by
      government or agency thereof, or by another person or group;

	 	 	 
	 	(ii) 	
      no complaint has been made or filed by any such
      government, agency or group having to do with any material environmental
      damage or injury or alleged damage or injury; and

	 	 	 
	 	(iii) 	
      there is no material matter, condition or thing that has
      arisen with respect to the Assets which could reasonably give rise to any
      such complaint, action, order, review or
investigation;

	 	(q) 	
      Assets: Upon Closing, each of Vendor and Subco
      will be disposing of all or substantially all of its assets and shall have
      received shareholder approval for the transfer of such assets;

	 	 	 
	 	(r) 	
      Rights of First Refusal: The Assets are not
      subject to any Rights of First Refusal;

	 	 	 
	 	(s) 	
      Consents: The Vendor and Subco have obtained all
      such approvals and consents as may be required in order to permit the
      transactions contemplated hereby including from, but not limited to, all
      third parties to the Contracts, Leases and all contracts related to the
      Assumed Liabilities;

	 	 	 
	 	(t) 	
      Royalty Payments: To Vendor's or Subco’s
      knowledge, all royalties have been timely paid to the Crown and other
      holders of royalties and similar interests with respect to all filings in
      respect of such royalties have been properly and timely made in accordance
      with the applicable legislation or agreements;

	 	 	 
	 	(u) 	
      Take or Pay: There are no Take or Pay Provisions
      or Take or Pay Amounts relating to the Assets;

	 	 	 
	 	(v) 	
      No Carried Interest: Other than as disclosed on
      Schedule “A”, Vendor or Subco is not obligated to pay costs related to the
      Assets attributable to the interests of a Third Party;

	 	 	 
	 	(w) 	
      Receipt of Revenue, Production in Kind: To
      Vendor's or Subco’s knowledge, it has been receiving the share of the net
      proceeds of production from the Assets attributable to Vendor's or Subco’s
      interest in the Assets in accordance with ordinary oilfield practices and
      where Vendor or Subco is taking production of Petroleum Substances from
      the Assets in kind, such Petroleum Substances are being delivered to
      Vendor or Subco or for its account in accordance with ordinary oilfield
      practices; and

	 	 	 
	 	(x) 	
      No AMI: To Vendor's or Subco’s knowledge, there
      are no active areas of mutual interest or similar provisions in any
      agreements governing the Assets or documents to which the Assets are
      subject.

	7.2 	
      Limitation of Representations and
      Warranties

	 	 	 
		(a) 	
      Purchaser acknowledges that it is purchasing Vendor's and
      Subco’s interest in and to the Assets on an "as is, where is" basis,
      without representation and warranty and without reliance on any
      information provided to or on behalf of Purchaser by Vendor or Subco
    or

Page 28 

any Third Party except as expressly
set forth in section 7.1 and in particular, and without limiting the generality
of the foregoing, each of Vendor and Subco hereby negates any representations or
warranties, whether contained in any information, memorandum or otherwise,
except for those set forth above in section 7.1, with respect to: 

	 	(i) 	
      any data or information supplied by Vendor or Subco in
      connection therewith;

	 	 	 
	 	(ii) 	
      the quality, quantity or recoverability of Petroleum
      Substances within or under the Lands;

	 	 	 
	 	(iii) 	
      the value of the Assets or the future cash flow
      therefrom; and

	 	 	 
	 	(iv) 	
      the quality, condition, fitness or marketability of any
      tangible, depreciable equipment or property, interests in which are
      comprised in the Assets.

	 	(b) 	
      Furthermore, except to the extent that it has relied upon
      the representations and warranties contained in section 7.1, Purchaser
      acknowledges and confirms that it has performed its own due diligence and
      it has not relied on any data, information or advice from Vendor or Subco
      with respect to any or all of the matters specifically enumerated in this
      section in connection with the purchase of the Assets pursuant to this
      Agreement. In addition, Purchaser specifically acknowledges and confirms
      that in agreeing to enter into and to consummate the transaction
      contemplated in this Agreement, it has relied, and will continue to rely,
      upon its own engineering and other evaluations and projections as the same
      relate to the Assets and on its own inspection of all other physical
      property and assets which comprise the Assets.

	7.3 	
      Representations and Warranties of
      Purchaser

	 	 	 
		
      Purchaser hereby represents and warrants to Vendor and
      Subco at the date hereof and at the Closing Time that:

	 	 	 
		(a) 	
      Corporate Standing: Purchaser is, and shall
      remain, a corporation duly organized, validly subsisting and in good
      standing under the laws of its jurisdiction of incorporation;

	 	 	 
		(b) 	
      Corporate Authority: Purchaser now has and shall
      have at all times material to the transaction contemplated hereby, taken
      all necessary corporate actions and has all requisite power and authority
      to enter into this Agreement and the other agreements and documents
      required to be delivered by it pursuant hereto, and to perform its
      obligations under this Agreement and the other agreements and documents
      required to be delivered by it pursuant hereto;

	 	 	 
		(c) 	
      Execution and Enforceability of Documents: This
      Agreement and the other documents and agreements required by it have been
      duly executed and delivered by it and constitute legal, valid, binding and
      enforceable obligations of Purchaser;

	 	 	 
		(d) 	
      No Conflicts: The consummation by Purchaser of the
      transaction contemplated herein will not, in any material respects,
      violate or conflict with any of the constating documents, by-laws or
      governing documents of Purchaser or any provision of any material
      agreement or instrument to which Purchaser is party or by which the Assets
      are bound, or any judgment, decree, order, statute, rule or regulation
      applicable to Purchaser or the Assets;

Page 29 

	 	(e) 	
      Canadian Resident: It is not a non-resident of
      Canada within the meaning of the Income Tax Act (Canada);

	 	 	 
	 	(f) 	
      Finders' Fees: It has not incurred any obligation
      or liability, contingent or otherwise, for brokers' or finders' fees in
      respect of this transaction for which Vendor or Subco shall have any
      obligation or liability; and

	 	 	 
	 	(g) 	
      Purchaser is not a non-Canadian person for the purposes
      of the Investment Canada Act.

	8. 	
      INDEMNITIES

	 	 	 
	8.1 	
      Indemnities for Representations and
      Warranties

	 	 	 
		(a) 	
      Provided Closing occurs, each of Vendor and Subco shall
      be jointly and severally liable for, and shall indemnify Purchaser from
      and against, all Losses suffered, sustained, paid or incurred by Purchaser
      as a direct result of any act, omission, circumstance or other matter
      arising out of, resulting from, attributable to, or connected with a
      breach of the representations and warranties contained in section 7.1
      provided, however, that nothing in this section 8.1(a) shall be construed
      so as to cause Vendor or Subco to be liable to or indemnify Purchaser in
      connection with any representation or warranty contained in section 7.1,
      if and to the extent that Purchaser did not rely upon such representation
      or warranty.

	 	 	 
		(b) 	
      Provided Closing occurs, Purchaser shall be liable for,
      and shall indemnify Vendor and Subco from and against, all Losses
      suffered, sustained, paid or incurred by Vendor or Subco as a direct
      result of any act, omission, circumstance or other matter arising out of,
      resulting from, attributable to, or connected with a breach of the
      representations and warranties contained in section 7.3 provided, however,
      that nothing in this section 8.1(b) shall be construed so as to cause
      Purchaser to be liable to or indemnify Vendor or Subco in connection with
      any representation or warranty contained in section 7.3, if and to the
      extent that Vendor or Subco did not rely upon such representation or
      warranty.

	 	 	 
		(c) 	
      If after Closing, a claim by a Third Party is asserted in
      circumstances which give or may give rise to a right of indemnification
      under this Agreement, the Party against whom the claim is asserted shall
      forthwith give written notice thereof to the other Party and the Parties
      shall consult and co-operate in respect thereof and in determining whether
      the claim and any legal proceedings relating thereto should be resisted,
      compromised or settled. Each Party shall make available to the other all
      information in its possession or to which it has access and which it is
      legally entitled to disclose, which is or may be relevant to the
      particular claim as well as access to the asset subject to the claim, if
      required. No such claim shall be settled or compromised without the
      written consent of the indemnifying Party hereunder, which consent shall
      not be unreasonably withheld. If any claim relates exclusively to a matter
      for which only one Party is liable and in respect of which there is no
      right of indemnification hereunder, the Party who is liable shall have
      exclusive conduct of the claim and all legal proceedings relating
      thereto.

	 	 	 
		(d) 	
      Each Party's obligation to indemnify the other shall not
      limit or reduce the other Party's rights in respect of a breach of any
      representation and warranty provided that written notice of such breach is
      provided within twelve (12) months of the Closing Time. The written notice
      shall include detailed particulars as to the nature and the amount of
      the

Page 30 

claim, the basis upon which it is
sought and the provisions of this Agreement applicable to such claim.

	8.2 	
      General Pre and Post-Closing
    Indemnity

	 	 	 
		(a) 	
      Purchaser shall be liable to Vendor and Subco for and
      shall, in addition, indemnify Vendor and Subco from and against all Losses
      suffered, sustained, paid or incurred by Vendor or Subco which arise out
      of any matter or thing occurring or arising from and after the Closing
      Time and which relates to the Assets provided however that Purchaser shall
      not be liable to nor be required to indemnify Vendor or Subco in respect
      of any Losses suffered, sustained, paid or incurred by Vendor or Subco
      which arise out of acts or omissions of Vendor or Subco, any breach of the
      representations and warranties of Vendor and Subco contained in section
      7.1 or a breach of section 5.1 by Vendor or Subco.

	 	 	 
		(b) 	
      Each of vendor and Subco shall be jointly and severally
      liable to Purchaser for and shall, in addition, indemnify Purchaser from
      and against all Losses suffered, sustained, paid or incurred by Purchaser
      which arise out of any matter or thing occurring or arising prior to the
      Closing Time and which relates to the Assets provided however that Vendor
      and Subco shall not be liable to nor be required to indemnify Purchaser in
      respect of any Losses suffered, sustained, paid or incurred by Purchaser
      which arise out of acts or omissions of Purchaser, any breach of the
      representations and warranties of Purchaser contained in section
    7.3.

	 	 	 
	8.3 	
      Environmental Indemnity

	 	 	 
		
      It is acknowledged that Purchaser has been provided with
      the right and the opportunity to conduct due diligence investigations with
      respect to existing or potential Environmental Liabilities. Provided
      Closing occurs, Purchaser agrees that neither Vendor nor Subco shall have
      any liability whatsoever for any Environmental Liabilities and in this
      regard, Purchaser shall:

	 	 	 
		(a) 	
      be solely liable for; and

	 	 	 
		(b) 	
      indemnify and defend Vendor and Subco from and
      against:

all Losses which Vendor or Subco may
sustain, pay or incur as a result of any act, omission, matter or thing related
to the Environmental Liabilities. This liability and indemnity shall apply
without limit and without regard to cause or causes, including without
limitation the negligence, whether sole, concurrent, gross, active, passive,
primary or secondary, or the wilful or wanton misconduct of Vendor, Subco,
Purchaser or any Third Party. Purchaser acknowledges and agrees that it shall
not be entitled to any rights or remedies as against Vendor or Subco under the
common law or statute pertaining to any Environmental Liabilities, including,
without limitation, the right to name Vendor or Subco as a third party to any
action commenced by any Third Party against Purchaser. Nothing herein contained
shall prejudice any claims or remedies that Vendor or Subco may have against
Purchaser in relation to such claim or remedy outside this Agreement including
rights and remedies under the common law or statute. Notwithstanding the
foregoing, this section 8.3 shall not apply to the extent that the
representation and warranty contained in section 7.1(p) is false. 

Page 31 

	9. 	
      GENERAL

	 	 	 
	9.1 	
      Termination

	 	 	 
		
      This Agreement may be terminated by written notice given
      by the Purchaser or the Vendor to the other Party, at any time prior to
      completion of the transaction contemplated hereby, as follows:

	 	 	 
		(a) 	
      by mutual written consent of the Purchaser and the
      Vendor;

	 	 	 
		(b) 	
      by one of Purchaser or the Vendor if one of the
      conditions precedent contemplated herein for the benefit of that Party has
      not been satisfied by the date specified herein;

	 	 	 
		(c) 	
      by the Purchaser if either the Vendor or Subco fails to
      perform its covenants contemplated herein;

	 	 	 
		(d) 	
      by the Vendor if the Purchaser fails to perform its
      covenants contemplated herein; and

	 	 	 
		(e) 	
      by the Vendor, in the event that the Vendor accepts,
      recommends, approves or enters into an agreement to implement an
      alternative transaction with another party in accordance with the terms
      hereof, provided that the each of the Vendor and Subco has complied with
      its obligations herein set forth and the Vendor concurrently pays to the
      Purchaser the applicable Termination Fee.

	 	 	 
		
      In the event of the termination of this Agreement as
      provided in this Section 9.1, this Agreement shall forthwith have no
      further force or effect and there shall be no liability on the part of the
      Purchaser or the Vendor or Subco hereunder except as set forth in Sections
      9.3, 9.4 and 9.19 (provided that in the case of Section 9.3, the right of
      payment arose prior to termination of this Agreement) and this Section
      9.1, which provisions shall survive the termination of this Agreement.
      Nothing contained in this Section 9.1 shall relieve any Party from
      liability for any breach of any provision of this Agreement.

	 	 	 
		
      In the event of termination of this Agreement, each of
      the Parties shall forthwith return to the other all confidential and other
      information relating to such other Party.

	 	 	 
	9.2 	
      Exclusivity

	 	 	 
		
      During the Exclusivity Period, each of the Vendor and
      Subco agrees that neither it, its directors, officers, employees, agents,
      financial advisors, counsel or other representatives shall, directly or
      indirectly:

	 	 	 
		(a) 	
      solicit, initiate or encourage (including, without
      limitation, by way of furnishing information or entering into any form of
      agreement, arrangement or understanding) the initiation or continuation of
      any inquiries, discussions, negotiations, proposals or transactions from
      any corporation, person or other entity or group (other than the Purchaser
      and its subsidiaries and their respective directors, officers, employees,
      agents, financial advisors, counsel or other representatives) in respect
      of any matter or thing which is inconsistent with the successful
      completion of the transaction contemplated by this Agreement; or

	 	 	 
		(b) 	
      participate in any discussions or negotiations regarding,
      or furnish to any person any information with respect to, the business,
      properties, operations, prospects or conditions

Page 32 

(financial or otherwise) of the Vendor
or Subco or otherwise cooperate in any manner with, or assist or participate in,
or facilitate or encourage, an effort or attempt by any other person to do
anything mentioned in (a) above, or waive, or otherwise forbear in the
enforcement of or enter into or participate in any discussions, negotiations or
agreements to waive or otherwise forebear in respect of, any rights or other
benefits of the Vendor or Subco under confidentiality agreements, including, any
"standstill" provisions thereunder; provided however, that the foregoing in no
way restricts or limits the board of directors of the Vendor or Subco from
responding or acting in any manner if a failure to respond or act would, in the
opinion of the board of directors of the Vendor or Subco (acting reasonably and
after receiving advice of outside counsel), be inconsistent with the performance
by the board of directors of the Vendor or Subco of their fiduciary duties under
applicable laws. The Vendor, Subco or their directors, shall not make any
disclosure or provide any information in accordance with this provision unless
the Vendor shall have notified the Purchaser of that occurrence, required the
party making the proposal to execute a confidentiality agreement in favour of
the Vendor on terms and conditions no more favourable to such other party than
those contained in the Confidentiality Agreement between the Vendor and the
Purchaser and unless the Vendor shall have concurrently provided copies of the
same information or made the same disclosure to the Purchaser. Additionally, the
Vendor agrees to notify the Purchaser, verbally and in writing, immediately of
the receipt of any communication from any person that is related, directly or
indirectly, to any such proposal. 

	9.3 	
      Termination Fee

	 	 	 
		
      Provided the Purchaser is not in default of its material
      obligations under this Agreement, the Vendor shall pay to the Purchaser
      the Termination Fee if any of the following occur:

	 	 	 
		(a) 	
      the board of directors of the Vendor fails to recommend
      that shareholders of the Vendor approve the transaction contemplated by
      this Agreement or the board of directors of the Vendor withdraws or, in a
      manner materially adverse to the transaction contemplated hereby, modifies
      or changes its recommendation to holders of its shares to approve the
      transaction contemplated hereby, provided that such failure, modification
      or change is not due to a material misrepresentation made by the Purchaser
      or as a result of the occurrence of any matter referred to in Section 9.1
      hereof which would entitle the Vendor to terminate this Agreement (in
      which case this Section 9.3 shall not be applicable) unless the occurrence
      shall be due to the failure of the Vendor or Subco to perform its
      obligations under this Agreement;

	 	 	 
		(b) 	
      another bona fide Take-Over Proposal is publicly
      announced or made to the Vendor or Subco or to all or substantially all
      holders of the Vendor’s or Subco’s shares that provides or would provide
      greater value to holders of the Vendor’s or Subco’s shares than under the
      transaction contemplated hereby and, upon termination of this Agreement
      such Take-Over Proposal has not expired or been withdrawn;

	 	 	 
		(c) 	
      a material breach by the Vendor or Subco of its
      covenants, agreements, representations and warranties in this Agreement
      which makes it impossible or unlikely that the transaction contemplated
      hereby will be completed or that the conditions precedent set forth herein
      will be satisfied.

	 	 	 
			
      The value from time to time of the transaction
      contemplated hereby and any Take-Over Proposal shall be determined jointly
      by the Purchaser and the Vendor, acting
reasonably.

Page 33 

The Vendor agrees that the Termination
  Fee will be paid within five business days of the date of the earliest of such
  event to occur. On the date of the earliest event described above in this Section
  9.3, the Vendor shall be deemed to hold such sum in trust for the Purchaser.

	9.4 	
      Confidentiality

	 	 
		
      Information respecting the Assets shall be retained in
      confidence and used only for the purposes of this transaction. Provided
      Closing has occurred, each Party shall keep confidential all information
      obtained from the other Party in connection with the Assets and shall not
      release any information concerning this Agreement and the transactions
      herein provided for, without the prior written consent of the other Party,
      which consent shall not be unreasonably withheld. Nothing contained herein
      shall prevent a Party at any time from furnishing information (i) to any
      governmental agency or regulatory authority or to the public if required
      by applicable law, provided that the Parties shall advise each other in
      advance of any public statement which they propose to make, (ii) in
      connection with obtaining consents or complying with Rights of First
      Refusal or consents contained in any agreements and documents to which the
      Assets are subject, or (iii) to procure the consent of Vendor's or Subco’s
      lenders. The obligations of Purchaser under this section 9.1 are in
      addition to, and not in substitution for or the reduction of, the
      obligations of Purchaser under the Confidentiality Agreement.

	 	 
	9.5 	
      Employees

	 	 
		
      No employees, if any, of the Vendor, Subco or any of
      their subsidiaries (the “Source Employees") will be offered employment by
      the Purchaser or any of its subsidiaries following the closing of the
      transaction contemplated by this Agreement. The Vendor and Subco shall be
      responsible for any compensation, severance or termination pay payable to
      Source Employees.

	 	 
	9.6 	
      Privacy Restrictions

	 	 
		
      Purchaser shall comply with all Regulations which govern
      the collection, use and disclosure of Personal Information which is
      collected, used or disclosed to Purchaser in connection with this
      Agreement. Purchaser shall limit, and shall cause any of its employees and
      agents to limit the use, collection and disclosure of Personal
      Information, if any, to those purposes that relate to this Agreement and
      shall otherwise limit disclosure of Personal Information to disclosure
      required by the Regulations. Purchaser shall use appropriate security
      measures to protect the Personal Information against accidental or
      inappropriate disclosure. For the purposes of this Article, “Personal
      Information” shall mean information about an identifiable individual that
      is personal in nature and is not otherwise publicly available from sources
      that have no obligation of confidentiality or non-disclosure.

	 	 
	9.7 	
      Further Assurances

	 	 
		
      Each Party will, from time to time and at all times after
      Closing, without further consideration, do such further acts and deliver
      all such further assurances, deeds and documents as shall be reasonably
      required in order to fully perform and carry out the terms of this
      Agreement.

	 	 
	9.8 	
      Recognition

	 	 
		
      Following Closing, Vendor and Subco shall represent
      Purchaser in all matters arising under the agreements and documents to
      which the Assets are subject until Purchaser is substituted as
  a

Page 34 

party thereto in the place of Vendor
and Subco, whether by novation, notice of assignment, transfer or otherwise and,
in furtherance thereof Vendor and Subco shall: 

	 	(a) 	
      hold title to the Assets, or any portion thereof, in
      trust for Purchaser, represent Purchaser and receive and hold all
      proceeds, benefits and advantages accruing in respect of the Assets for
      the benefit, use and ownership of Purchaser;

	 	 	 
	 	(b) 	
      on a monthly basis and in any event within thirty (30)
      days of its receipt thereof, deliver to Purchaser all revenues, proceeds
      and other benefits attributable to production after the Adjustment Date
      received by Vendor or Subco in respect of the Assets, together with the
      relevant statements of operations and related documents provided however
      Vendor or Subco shall be entitled to retain any portion of such funds to
      satisfy any amounts owing or payable hereunder or to satisfy any amounts
      owing to Third Parties by Purchaser under the Leases, agreements or other
      documents relating to the Assets;

	 	 	 
	 	(c) 	
      deliver to Purchaser all Third Party notices and
      communications received by Vendor or Subco in respect of the Assets and
      all Third Party invoices, cash calls and other billings in respect of the
      Assets; and

	 	 	 
	 	(d) 	
      deliver to Third Parties all notices and communications
      respecting the Assets as Purchaser may reasonably request in writing and
      all money and other items provided in respect
thereof.

		
      In consideration of Vendor and Subco agreeing to the
      foregoing, Purchaser shall be liable to and shall, in addition, indemnify
      and save harmless Vendor and Subco from and against all Losses which
      Vendor or Subco may suffer, pay or incur arising as a consequence of the
      provisions of this section 9.4.

	 	 	 
	9.9 	
      No Merger

	 	 	 
		
      The covenants, representations, warranties and
      indemnities contained in this Agreement shall be deemed to be restated in
      any and all assignments, conveyances, transfers and other documents
      conveying the interests of Vendor and Subco in the Assets to Purchaser
      subject to any and all time and other limitations contained in this
      Agreement. There shall not be any merger of any covenant, representation,
      warranty or indemnity in such assignments, conveyances, transfers and
      other documents notwithstanding any rule of law, equity or statute to the
      contrary and all such rules are hereby waived.

	 	 	 
	9.10 	
      Public Announcements

	 	 	 
		
      The Parties shall co-operate with each other in releasing
      information concerning this Agreement and the transactions herein provided
      for, and shall furnish to and discuss with the other Party drafts of all
      press and other releases prior to publication. Nothing contained herein
      shall prevent:

	 	 	 
		(a) 	
      either Party at any time from furnishing information to
      any governmental agency or regulatory authority or to the public if
      required by the Regulations or the rules of any recognized stock exchange
      if the Party has advised the other Party in advance of any public
      statement which it proposes to make regarding the said transactions;
    or

	 	 	 
		(b) 	
      the Parties from furnishing information relating to this
      Agreement, the transactions to be completed
hereunder.

Page 35 

	9.11 	
      Signs and Notifications

	 	 
		
      At any time after Closing, Vendor and Subco may remove
      any signs which indicate Vendor's or Subco’s ownership or operation of the
      Assets. It shall be the responsibility of Purchaser, where necessary, to
      erect or install any signs that may be required by governmental agencies
      indicating Purchaser to be the operator of the Assets and to notify other
      working interest owners, gas purchasers, lessors, suppliers, contractors,
      governmental agencies and any other Third Party of Purchaser's interest in
      the Assets and Purchaser shall, as soon as is reasonably possible after
      Closing, erect or install such signs and notify such persons.

	 	 
	9.12 	
      Governing Law

	 	 
		
      This Agreement shall, in all respects, be subject to and
      be interpreted, construed and enforced in accordance with and under the
      laws of the Province of Alberta and applicable laws of Canada and shall,
      in all respects, be treated as a contract made in the Province of Alberta.
      Each Party irrevocably attorns and submits to the exclusive jurisdiction
      of the courts of the Province of Alberta and all courts of appeal
      therefrom in respect of all matters arising out of or in connection with
      this Agreement.

	 	 
	9.13 	
      Time

	 	 
		
      Time shall be of the essence in this Agreement.

	 	 
	9.14 	
      Notices

	 	 
		
      The addresses for service and the fax numbers of the
      Parties shall be as follows:

	Vendor or Subco: 	Purchaser: 
	620 – 304 8th Avenue SW 	c/o Shea Nerland Calnan LLP 
	Calgary, AB 	2800, 715 – 5th Avenue SW 
	T2P 1C1 	Calgary, Alberta 
	Attention: Sam Charanek, President and 	T2P 2X6 
	CEO 	Attention: Joe Brennan 
	Fax: (403) 444-0066 	Fax: (403) 299-9601 
	with a copy to: 	  
	Clark Wilson LLP 	  
	800 – 885 West Georgia St. 	  
	Vancouver, B.C. V6C 3H1 	  
	Attention: L.K. Larry Yen 	  

All notices, communications and
statements required, permitted or contemplated hereunder shall be in writing,
and shall be delivered and received if: 

	 	(a) 	
      personally served on the other Party by delivery during
      the normal business hours of the recipient at the addresses set forth
      above (personally served notices shall be deemed received by the addressee
      when actually delivered); or

	 	 	 
	 	(b) 	
      by telefax directed to the Party on whom they are to be
      served at that Party's fax number set forth above and such notices so
      served shall be deemed to have been received by the addressee thereof when
      actually received by it if received within the normal working hours of a
      Business Day, or, if received outside the normal working hours of a
      Business

Page 36 

Day, at the commencement of the next
ensuing Business Day following transmission thereof. 

		
      A Party may from time to time change its address for
      service or its fax number or both by giving written notice of such change
      to the other Party.

	 	 
	9.15 	
      Entire Agreement

	 	 
		
      The provisions contained in any and all documents and
      agreements collateral hereto shall at all times be read subject to the
      provisions of this Agreement and, in the event of conflict, the provisions
      of this Agreement shall prevail. This Agreement shall not be varied in its
      terms or amended by oral agreement or by representations or otherwise
      other than by an instrument in writing dated subsequent to the date
      hereof, executed by a duly authorized representative of each Party. This
      Agreement supersedes all other agreements, documents, writings and verbal
      understandings among the Parties relating to the subject matter hereof and
      expresses the entire agreement of the Parties with respect to the subject
      matter hereof.

	 	 
	9.16 	
      Enurement

	 	 
		
      This Agreement may not be assigned by a Party without the
      prior written consent of the other Party, which consent may be
      unreasonably and arbitrarily withheld. This Agreement shall be binding
      upon and shall enure to the benefit of the Parties and their respective
      administrators, trustees, receivers, receiver-managers, successors and
      permitted assigns.

	 	 
	9.17 	
      Waivers

	 	 
		
      No failure on the part of any Party in exercising any
      right or remedy hereunder shall operate as a waiver thereof, nor shall any
      single or partial exercise of any such right or remedy preclude any other
      or future exercise thereof or the exercise of any right or remedy in law
      or in equity or by statute or otherwise conferred. No waiver of any
      provisions of this Agreement, including without limitation, this section,
      shall be effective other then by an instrument in writing dated subsequent
      to the date hereof, executed by a duly authorized representative of the
      Party making such waiver.

	 	 
	9.18 	
      Substitution and Subrogation

	 	 
		
      The assignment and conveyance in respect of the Assets to
      be affected by this Agreement is made with full right of substitution and
      subrogation of Purchaser in and to all covenants, representations and
      warranties and indemnities previously given or made by others in respect
      of the Assets or any part or portion thereof.

	 	 
	9.19 	
      Expenses

	 	 
		
      Other than as provided in Section 9.3 hereof, all fees,
      costs and expenses incurred in connection with this Agreement and the
      transaction contemplated hereby shall be paid by the Party incurring such
      cost or expense, whether or not the transaction is consummated.

	 	 
	9.20 	
      Severability

	 	 
		
      If any one or more of the provisions or parts thereof
      contained in this Agreement should be or become invalid, illegal or
      unenforceable in any respect in any jurisdiction, the
  remaining

Page 37 

provisions or parts thereof contained
herein shall be and shall be conclusively deemed to be, as to such jurisdiction,
severable therefrom and: 

	 	(a) 	
      the validity, legality or enforceability of such
      remaining provisions or parts thereof shall not in any way be affected or
      impaired by the severance of the provisions or parts thereof severed;
      and

	 	 	 
	 	(b) 	
      the invalidity, illegality or unenforceability of any
      provision or part thereof contained in this Agreement in any jurisdiction
      shall not affect or impair such provision or part thereof or any other
      provisions of this Agreement in any other
jurisdiction.

[THE REMAINDER OF THIS PAGE HAS INTENTIONALLY BEEN LEFT
BLANK.] 

Page 38 

 

 

Schedule “A”

attached to and made part of a Purchase and Sale Agreement

dated September 7, 2007 
between ARCH ENERGY INC. and SOURCE PETROLEUM
INC. and 1245147 ALBERTA LTD.

LANDS AND LEASES

	   Area 	 
	1 Woking Alberta 	 
	  	Twp 75, rge 4 W6M, section 21.
      All P&NG below the base of the Halfway 
	  	Twp 75, rge 4 W6M, section 29 All
      P&NG below the base of the Stoddart. 
	   Lands 	Twp 75, rge 4 W6M, section 31 All
      P&NG below the base of the Bluesky-Bullhead 
	  	These lands being part of a
      farmout agreement " between Dual Exploration Inc. and 1245147 
	  	Alberta Ltd. dated July 4, 2006".
    
	  	Alberta Crown P&NG License
      no. 5405060306 
	   Title Documents 	Alberta Crown P&NG License
      no. 5405060966 
	   Interest acquired 	Earn 37.5% in lands by paying 75%
      of test well. 
	   Encumbrances 	Crown Lessor Royalty 
	  	 
	2 Harmon Valley, Alberta 	 
	  	TWP 83, Range 19 W5M, Sections
      15, 16, 17, 20, 21, 29. 
	   Lands 	Oilsands from the top of the
      Peace River formation to the base of the Pekisko formation. 
	  	These lands being part of a
      farmout agreement " between Dual Exploration Inc. and 1245147 
	  	Alberta Ltd. dated July 4, 2006".
    
	  	Alberta Crown OilsandsLEase No
      7404041030 
	   Title Documents 	Alberta Crown OilsandsLEase No
      7404080869 
	  	Earn 50% by paying 100% of three
      test wells to earn the 3 section test well block. Option to 
	   Interest acquired 	drill 3 additional wells to earn
      the Option well block, a further 3 sections. 
	   Encumbrances 	Crown Lessor Royalty 
	  	 
	3 Pasquila Hills, Sasketchewan 	 
	   Lands 	Permit PS 00244 
	  	40-31W1M: 1-36; 
	  	41-31W1M: 1-36; 
	  	40-32W1M: 1-3, Frac. E 1⁄2
      of 4, Frac. E 1⁄2 of 9, 10-15, Frac. E 1⁄2 of 16, Frac. E 1⁄2 of 21, 22- 
	  	27, Frac. E 1⁄2 of 28, Frac. E 1⁄2 of
      33, 34-36; 
	  	41-32W1M: 1-3, Frac. E 1⁄2
      of 4, Frac. E 1⁄2 of 9, 10-15, Frac. E 1⁄2 of 16, Frac. E 1⁄2 of 21, 22- 
	  	27, Frac. E 1⁄2 of 28, Frac. E 1⁄2 of
      33, 34-36. 
	  	 
	  	Permit 00245 
	  	48-15W2M: 1-36; 
	  	49-15W2M: 1-36; 
	  	48-16W2M: 1-36; 
	  	49-16W2M: 1-36. 
	  	Permit PS 00246 
	  	48-13W2M: 1-33, 36 
	  	48-14W2M: 1-36 
	  	49-12W2M: 1-22, S&NW
      23, 24-36 
	  	 
	   Title Documents 	PS00244 
	  	PS00245 
	  	PS00246 
	   Interest acquired 	Pay 100% to earn 85% with payout.
      Propel has option to acquire 10% at cost. 
	   Encumbrances 	Sask Crown 
	  	Sask Shale Oil Permits
  

Page 40

Schedule “B” 

attached to and made part of a Purchase and Sale Agreement

dated September 7, 2007 
between ARCH ENERGY INC. and SOURCE PETROLEUM
INC. and 1245147 ALBERTA LTD. 

FACILITIES, PROCESSING AGREEMENTS AND UNITS 
AND
EXCLUSIONS FROM MISCELLANEOUS INTERESTS 

All of those Facilities, Processing Agreements and Units
related to the Lands in which the Vendor has an interest.

Upon execution of the Agreement to which this schedule is
attached, the Vendor agrees to use all commercially reasonable efforts to
compile a detailed list of such Facilities, Processing Agreements and Units and,
subject to the approval of the Purchaser, replace the contents of this schedule
with that list. 

Page 41 

Schedule “C” 

attached to and made part of a Purchase and Sale Agreement

dated September 7, 2007 
between ARCH ENERGY INC. and SOURCE PETROLEUM
INC. and 1245147 ALBERTA LTD. 

WELLS 

	Unique Well Identifier 	BPO Working Interest 	APO Working Interest 
	B.H. 100/10-21-75-4W6M/02 	75% 	37.5% 
	103/1-29-83-19W5M/02 	100% 	50% 

Page 42 

Schedule “D” 

attached to and made part of a Purchase and Sale Agreement

dated September 7 2007 
between ARCH ENERGY INC. and SOURCE PETROLEUM
INC. and 1245147 ALBERTA LTD. 

CONVEYANCE 

THIS AGREEMENT dated the November 30, 2007. 

BETWEEN: 

  
    
      
        SOURCE PETROLEUM INC., a body corporate having
          an office and carrying on business in the City of Calgary, in the Province
          of Alberta ("Vendor") and 1245147 ALBERTA LTD., a body
          corporate having an office and carrying on business in the City of Calgary,
          in the Province of Alberta (“Subco”) 

      

    

  

- and - 

  
    
      
        ARCH ENERGY INC., a body corporate having an
          office and carrying on business in the City of Calgary, in the Province
          of Alberta ("Purchaser") WHEREAS 

      

    

  

	(A) 	
      Vendor, Subco and Purchaser entered into that Purchase
      and Sale Agreement dated September 7, 2007 (the "Sale Agreement")
      with respect to the "Assets" (which term, when used in this
      Conveyance, has the same meaning as in the Sale Agreement);

	 	 
	(B) 	
      All of the conditions precedent to the obligations of
      Vendor, Subco and Purchaser to close the transactions contemplated by the
      Sale Agreement have either been fulfilled or waived in the manner provided
      for waiver in the Sale Agreement;

NOW THEREFORE in consideration of the premises contained
in this Conveyance and the covenants and agreements contained in this
Conveyance, Vendor, Subco and Purchaser covenant and agree as follows: 

	1. 	
      Vendor and Subco hereby sells, assigns, transfers,
      conveys and sets over to Purchaser, and Purchaser hereby purchases from
      Vendor and Subco, all of the right, title, estate and interest of Vendor
      and Subco (whether absolute or contingent, legal or beneficial) in and to
      the Assets, TO HAVE AND TO HOLD the same, together with all benefit and
      advantage to be derived therefrom, absolutely, subject to the terms of the
      Sale Agreement.

	 	 
	2. 	
      The covenants, representations, warranties and
      indemnities contained in the Sale Agreement are incorporated herein as
      fully and effectively as if they were set out in this Conveyance and there
      shall not be any merger of any covenant, representation, warranty or
      indemnity contained in the Sale Agreement by virtue of the execution and
      delivery of this Conveyance, any rule of law, equity or statute to the
      contrary notwithstanding.

Page 43 

	3. 	
      If any term or provision of this Conveyance should
      conflict with any term or provision of the Sale Agreement, the term and
      provision of the latter shall prevail and this Conveyance shall at all
      times be read subject to all terms and conditions of the Sale
      Agreement.

	 	 
	4. 	
      This Conveyance shall be binding upon and shall enure to
      the benefit of each of Vendor, Subco and Purchaser and their respective
      trustees, receivers, receiver-managers, successors and permitted
      assigns.

	 	 
	5. 	
      This Conveyance shall, in all respects, be subject to and
      be interpreted, construed and enforced in accordance with and under the
      laws of the Province of Alberta and applicable laws of Canada and shall,
      in all respects, be treated as a contract made in the Province of Alberta.
      Each of Vendor, Subco and Purchaser irrevocably attorns and submits to the
      exclusive jurisdiction of the courts of the Province of Alberta and all
      courts of appeal therefrom in respect of all matters arising out of or in
      connection with this Conveyance.

	 	 
	6. 	
      This Conveyance may be executed in as many counterparts
      as are necessary and all executed counterparts together shall constitute
      one agreement.

IN WITNESS WHEREOF Vendor, Subco and Purchaser have
executed and delivered this Conveyance as of the date first above written. 

ARCH ENERGY INC. 

Per:
__________________________________
          
Don Martin, President and CEO 

SOURCE PETROLEUM INC. 

Per:
__________________________________
          
Sam Charanek, President and CEO 

1245147 ALBERTA LTD. 

Per:
__________________________________
          
Sam Charanek, President and CEO 

Page 44 

Schedule "E" 

attached to and made part of a Purchase and Sale Agreement

dated September 7, 2007 
between ARCH ENERGY INC. and SOURCE PETROLEUM
INC. and 1245147 ALBERTA LTD. 

ASSUMED LIABILITIES 

None. 

Page 45exhibit10a.htm

    
      

    

    Exhibit
      10.1

     

     

    EXECUTION
      COPY

     

    TERM
      LOAN CREDIT
      AGREEMENT

     

    Dated
      as of
      September 14, 2007

    among

     

    ENERGIZER
      HOLDINGS,
      INC.

     

     

    THE
      INSTITUTIONS
      FROM TIME TO TIME

    PARTIES
      HERETO AS
      LENDERS

     

     

    JPMORGAN
      CHASE
      BANK, N.A.,

    as
      Administrative
      Agent,

     

     

    BANK
      OF AMERICA,
      N.A.,

    as
      Syndication
      Agent

     

    and

     

    CITIBANK,
      N.A.,

    as
      Documentation
      Agent

     

     

    _________________________________________________________________________________

     

    J.P.
      MORGAN
      SECURITIES INC., BANC OF AMERICA SECURITIES LLC AND CITIGROUP GLOBAL MARKETS
      INC.,

    as
      Lead Arrangers
      and Joint Bookrunners

    _________________________________________________________________________________

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    
 

     

    Table
      of
      Contents

     

    
      	
               

            	
              ARTICLE
                I:  DEFINITIONS

            

    

    
      	
               

            	
              1.1  Certain
                Defined Terms

            

    

    
      	
               

            	
              1.2  References

            

    

    
      	
               

            	
              ARTICLE
                II:  THE TERM LOAN
                FACILITY

            

    

    
      	
               

            	
              2.1  Loans

            

    

    
      	
               

            	
              2.2  Repayment
                of Loans

            

    

    
      	
               

            	
              2.3  Rate
                Options for all Loans; Maximum Interest
                Periods

            

    

    
      	
               

            	
              2.4  Prepayments

            

    

    
      	
               

            	
              2.5  Reduction
                of Commitments

            

    

    
      	
               

            	
              2.6  Method
                of Borrowing

            

    

    
      	
               

            	
              2.7  Method
                of Requesting the Advance

            

    

    
      	
               

            	
              2.8  Amount
                of the Advance

            

    

    
      	
               

            	
              2.9  Method
                of Selecting Types and Interest Periods for Conversion and Continuation
                of
                Loans

            

    

    
      	
               

            	
              2.10  Default
                Rate

            

    

    
      	
               

            	
              2.11  Method
                of Payment

            

    

    
      	
               

            	
              2.12  Evidence
                of Debt; Noteless Agreement

            

    

    
      	
               

            	
              2.13  Telephonic
                Notices

            

    

    
      	
               

            	
              2.14  Promise
                to Pay; Interest Payment Dates; Fees; Interest and Fee
                Basis

            

    

    
      	
               

            	
              2.15  Notification
                of the Advance, Interest Rates, Prepayments and Aggregate Commitment
                Reductions

            

    

    
      	
               

            	
              2.16  Lending
                Installations

            

    

    
      	
               

            	
              2.17  Non-Receipt
                of Funds by the Administrative
                Agent

            

    

    
      	
               

            	
              2.18  Termination
                Date

            

    

    
      	
               

            	
              2.19  Replacement
                of Certain Lenders

            

    

    
      	
               

            	
              ARTICLE
                III:  [RESERVED]

            

    

    
      	
               

            	
              ARTICLE
                IV:  YIELD PROTECTION;
                TAXES

            

    

    
      	
               

            	
              4.1  Yield
                Protection

            

    

    
      	
               

            	
              4.2  Changes
                in Capital Adequacy Regulations

            

    

    
      	
               

            	
              4.3  Availability
                of Types of Loans

            

    

    
      	
               

            	
              4.4  Funding
                Indemnification

            

    

    
      	
               

            	
              4.5  Taxes.

            

    

    
      	
               

            	
              4.6  Lender
                Statements; Survival of Indemnity

            

    

    
      	
               

            	
              ARTICLE
                V:  CONDITIONS
                PRECEDENT

            

    

    
      	
               

            	
              5.1  Funding
                Date

            

    

    
      	
               

            	
              5.2  Closing
                Date

            

    

    
      	
               

            	
              5.3  Each
                Loan

            

    

    
      	
               

            	
              ARTICLE
                VI:  REPRESENTATIONS AND
                WARRANTIES

            

    

    
      	
               

            	
              6.1  Organization;
                Corporate Powers

            

    

    
      	
               

            	
              6.2  Authority.

            

    

    
      	
               

            	
              6.3  No
                Conflict; Governmental Consents for the
                Borrower

            

    

    
      	
               

            	
              6.4  Financial
                Statements

            

    

    
      	
               

            	
              6.5  No
                Material Adverse Change

            

    

    
      	
               

            	
              6.6  Taxes.

            

    

    
      	
               

            	
              6.7  Litigation;
                Loss Contingencies and Violations

            

    

    
      	
               

            	
              6.8  Subsidiaries

            

    

    
      	
               

            	
              6.9  ERISA

            

    

    
      	
               

            	
              6.10  Accuracy
                of Information

            

    

    
      	
               

            	
              6.11  Securities
                Activities

            

    

    
      	
               

            	
              6.12  Material
                Agreements

            

    

    
      	
               

            	
              6.13  Compliance
                with Laws

            

    

    
      	
               

            	
              6.14  Assets
                and Properties

            

    

    
      	
               

            	
              6.15  Statutory
                Indebtedness Restrictions

            

    

    
      	
               

            	
              6.16  Insurance

            

    

    
      	
               

            	
              6.17  Labor
                Matters

            

    

    
      	
               

            	
              6.18  Designated
                Acquisition

            

    

    
      	
               

            	
              6.19  Environmental
                Matters

            

    

    
      	
               

            	
              6.20  Solvency

            

    

    
      	
               

            	
              6.21  Benefits

            

    

    
      	
               

            	
              ARTICLE
                VII:  COVENANTS

            

    

    
      	
               

            	
              7.1  Reporting

            

    

    
      	
               

            	
              7.2  Affirmative
                Covenants.

            

    

    
      	
               

            	
              7.3  Negative
                Covenants.

            

    

    
      	
               

            	
              7.4  Financial
                Covenants

            

    

    
      	
               

            	
              ARTICLE
                VIII:  DEFAULTS

            

    

    
      	
               

            	
              8.1  Defaults

            

    

    
      	
               

            	
              ARTICLE
                IX:  ACCELERATION, DEFAULTING
                LENDERS; WAIVERS, AMENDMENTS AND
                REMEDIES

            

    

    
      	
               

            	
              9.1  Termination
                of Commitments; Acceleration

            

    

    
      	
               

            	
              9.2  Defaulting
                Lender

            

    

    
      	
               

            	
              9.3  Amendments

            

    

    
      	
               

            	
              9.4  Preservation
                of Rights

            

    

    
      	
               

            	
              ARTICLE
                X:  GENERAL
                PROVISIONS

            

    

    
      	
               

            	
              10.1  Survival
                of Representations

            

    

    
      	
               

            	
              10.2  Governmental
                Regulation

            

    

    
      	
               

            	
              10.3  Performance
                of Obligations

            

    

    
      	
               

            	
              10.4  Headings

            

    

    
      	
               

            	
              10.5  Entire
                Agreement

            

    

    
      	
               

            	
              10.6  Several
                Obligations; Benefits of this
                Agreement

            

    

    
      	
               

            	
              10.7  Expenses;
                Indemnification.

            

    

    
      	
               

            	
              10.8  Numbers
                of Documents

            

    

    
      	
               

            	
              10.9  Accounting

            

    

    
      	
               

            	
              10.10  Severability
                of Provisions

            

    

    
      	
               

            	
              10.11  Nonliability
                of Lenders

            

    

    
      	
               

            	
              10.12  GOVERNING
                LAW

            

    

    
      	
               

            	
              10.13  CONSENT
                TO JURISDICTION; JURY TRIAL.

            

    

    
      	
               

            	
              10.14  Subordination
                of Intercompany Indebtedness

            

    

    
      	
               

            	
              ARTICLE
                XI:  THE ADMINISTRATIVE
                AGENT

            

    

    
      	
               

            	
              11.1  Appointment
                and Authorization

            

    

    
      	
               

            	
              11.2  Administrative
                Agent and Affiliates

            

    

    
      	
               

            	
              11.3  Action
                by Administrative Agent and Liability of Administrative
                Agent

            

    

    
      	
               

            	
              11.4  Reliance
                on Documents and Counsel

            

    

    
      	
               

            	
              11.5  Employment
                of Agents

            

    

    
      	
               

            	
              11.6  Indemnification

            

    

    
      	
               

            	
              11.7  Successor
                Agent

            

    

    
      	
               

            	
              11.8  Credit
                Decision

            

    

    
      	
               

            	
              11.9  Administrative
                Agent, Arrangers, Syndication Agent, Documentation
                Agent

            

    

    
      	
               

            	
              ARTICLE
                XII:  SETOFF; RATABLE
                PAYMENTS

            

    

    
      	
               

            	
              12.1  Setoff

            

    

    
      	
               

            	
              12.2  Ratable
                Payments

            

    

    
      	
               

            	
              12.3  Application
                of Payments

            

    

    
      	
               

            	
              12.4  Relations
                Among Lenders.

            

    

    
      	
               

            	
              12.5  Representations
                and Covenants Among Lenders

            

    

    
      	
               

            	
              ARTICLE
                XIII:  BENEFIT OF AGREEMENT;
                ASSIGNMENTS; PARTICIPATIONS

            

    

    
      	
               

            	
              13.1  Successors
                and Assigns

            

    

    
      	
               

            	
              13.2  Participations.

            

    

    
      	
               

            	
              13.3  Assignments.

            

    

    
      	
               

            	
              13.4  Confidentiality

            

    

    
      	
               

            	
              ARTICLE
                XIV:  NOTICES

            

    

    
      	
               

            	
              14.1  Giving
                Notice.

            

    

    
      	
               

            	
              14.2  Change
                of Address

            

    

    
      	
               

            	
              ARTICLE
                XV:  COUNTERPARTS

            

    

    
      	
               

            	
              ARTICLE
                XVI:  USA PATRIOT
                ACT

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Exhibits
      and
      Schedules

    

    EXHIBIT
      A                                           Commitments

    EXHIBIT
      B                                           Form
      of Borrowing/Election Notice

    EXHIBIT
      C                                           Form
      of Assignment and Assumption

    EXHIBIT
      D                                           Form
      of Borrower’s Counsel’s Opinion

    EXHIBIT
      E                                           Form
      of Officer’s Certificate

    EXHIBIT
      F                                           Form
      of Compliance Certificate

    EXHIBIT
      G                                           Form
      of Supplement to Subsidiary Guaranty 

    

    

    Schedule
      1.1.1                                   Permitted
      Existing Investments

    Schedule
      1.1.2                                   Permitted
      Existing Liens

    Schedule
      1.1.3                                   Permitted
      Existing Contingent Obligations

    Schedule
      6.3                                      Conflicts;
      Governmental Consents

    Schedule
      6.7                                      Litigation;
      Loss Contingencies

    Schedule
      6.8                                      Subsidiaries

    Schedule
      6.19                                    Environmental
      Matters

    Schedule
      7.3(G)                                 Transactions
      with Shareholders and Affiliates

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TERM
      LOAN CREDIT
      AGREEMENT

     

    This
      Term Loan
      Credit Agreement dated as of September 14, 2007 is entered into among ENERGIZER
      HOLDINGS, INC., a Missouri corporation, the institutions from time to time
      parties hereto as Lenders and JPMORGAN CHASE BANK, N.A., in its capacity as
      Administrative Agent, BANK OF AMERICA, N.A., as Syndication Agent, and CITIBANK,
      N.A., as Documentation Agent.  The parties hereto agree as
      follows:

     

    DEFINITIONS

     

    Certain
      Defined
      Terms.  In addition to the terms defined above, the following
      terms used in this Agreement shall have the following meanings, applicable
      both
      to the singular and the plural forms of the terms defined.

     

    As
      used in this
      Agreement:

     

    “Accounting
      Change” is defined in Section 10.9 hereof.

     

    “Acquisition”
      means any transaction, or any series of related transactions, consummated on
      or
      after the date of this Agreement, by which the Borrower or any of its
      Subsidiaries (i) acquires any going business or all or substantially all of
      the
      assets of any firm, corporation or division thereof, whether through purchase
      of
      assets, merger or otherwise or (ii) directly or indirectly acquires (in one
      transaction or as the most recent transaction in a series of transactions)
      at
      least a majority (in number of votes) of the securities of a corporation which
      have ordinary voting power for the election of directors (other than securities
      having such power only by reason of the happening of a contingency) or a
      majority (by percentage of voting power) of the outstanding equity interests
      of
      another Person.

     

    “Administrative
      Agent” means JPMorgan in its capacity as contractual representative for
      itself and the Lenders pursuant to Article XI hereof and any successor
      Administrative Agent appointed pursuant to Article XI
      hereof.

     

    “Administrative
      Questionnaire” means an administrative questionnaire in a form supplied by
      the Administrative Agent.

     

    “Advance”
      means the borrowing hereunder made on the Funding Date in accordance with
Article II and consisting of the aggregate amount of the several Loans
      made by the Lenders to the Borrower.

     

    “Affected
      Lender” is defined in Section 2.19 hereof.

     

    “Affiliate”
      of any Person means any other Person directly or indirectly controlling,
      controlled by or under common control with such Person.  A Person
      shall be deemed to control another Person if the controlling Person is the
      “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act
      of 1934) of greater than ten percent (10%) or more of any class of voting
      securities (or other voting interests) of the controlled Person or possesses,
      directly or indirectly, the power to direct or cause the direction of the
      management or policies of the controlled Person, whether through ownership
      of
      Capital Stock, by contract or otherwise.

     

    “Agents”
      means, collectively, the Administrative Agent, the Syndication Agent and the
      Documentation Agent.

     

    “Aggregate
      Commitment” means the aggregate of the Commitments of all the Lenders, as
      may be reduced from time to time pursuant to the terms hereof.  The
      initial Aggregate Commitment is One Billion Five Hundred Million and 00/100
      Dollars ($1,500,000,000.00).

     

    “Agreement”
      means this Term Loan Credit Agreement, as it may be amended, restated,
      supplemented or otherwise modified and in effect from time to time.

     

    “Agreement
      Accounting Principles” means generally accepted accounting principles as in
      effect in the United States from time to time, applied in a manner consistent
      with that used in preparing the financial statements of the Borrower referred
      to
      in Section 6.4 hereof; provided, however, except as
      provided in Section 10.9, that with respect to the calculation of
      financial ratios and other financial tests required by this Agreement,
“Agreement Accounting Principles” means generally accepted accounting principles
      as in effect in the United States as of the date of this Agreement, applied
      in a
      manner consistent with that used in preparing the financial statements of the
      Borrower referred to in Section 6.4 hereof.

     

    “Alternate
      Base
      Rate” means, for any day, a fluctuating rate of interest per annum equal to
      the higher of (i) the Prime Rate for such day and (ii) the sum of (a) the
      Federal Funds Effective Rate for such day and (b) one-half of one percent (0.5%)
      per annum.

     

    “Applicable
      Facility Fee Percentage” means 0.20% per annum.

     

    “Applicable
      Margin” means 0.80% per annum.

     

    “Approved
      Fund” means any Person (other than a natural person) that is engaged in
      making, purchasing, holding or investing in bank loans and similar extensions
      of
      credit in the ordinary course of its business and that is administered or
      managed by (i) a Lender, (ii) an Affiliate of a Lender or (iii) an entity or
      an
      Affiliate of an entity that administers or manages a Lender.

     

    “Arrangers”
      means J.P. Morgan Securities Inc., Banc of America Securities LLC and Citigroup
      Global Markets Inc., in their respective capacities as the lead arrangers and
      joint bookrunners for the loan transaction evidenced by this
      Agreement.

     

    “Asset
      Sale”
means, with respect to any Person, the sale, lease, conveyance, disposition
      or
      other transfer by such Person of any of its assets (including by way of a
      sale-leaseback transaction, and including the sale or other transfer of any
      of
      the Equity Interests of any Subsidiary of such Person) other than (i) the sale
      of Inventory in the ordinary course of business and (ii) the sale or other
      disposition of any obsolete manufacturing Equipment disposed of in the ordinary
      course of business.

     

    “Assignment
      and
      Assumption” means an assignment and assumption agreement entered into by a
      Lender and an assignee (with the consent of any party whose consent is required
      by Section 13.3), and accepted by the Administrative Agent, in the form
      of Exhibit C or any other form approved by the Administrative
      Agent.

     

    “Authorized
      Officer” means any of the president, any vice president (including any
      executive vice president), the  chief financial officer or the
      treasurer of the Borrower, acting singly.

     

    “Bank
      of
      America” means Bank of America, N.A., in its individual capacity, and its
      successors.

     

    “Benefit
      Plan” means a defined benefit plan as defined in Section 3(35) of ERISA
      (other than a Multiemployer Plan or Foreign Pension Plan) in respect of which
      the Borrower or any other member of the Controlled Group is, or within the
      immediately preceding six (6) years was, an “employer” as defined in Section
      3(5) of ERISA.

     

    “Board”
      means the Board of Governors of the Federal Reserve System of the United States
      of America.

     

    “Borrower”
      means Energizer Holdings, Inc., a Missouri corporation, together with its
      successors and assigns, including a debtor-in-possession on behalf of the
      Borrower.

     

    “Borrowing/Election
      Notice” is defined in Section 2.7 hereof.

     

    “Business
      Day” means (i) with respect to any borrowing, payment or rate selection of
      Loans bearing interest at the Eurodollar Rate, a day (other than a Saturday
      or
      Sunday) on which banks are open for business in Chicago, Illinois and New York,
      New York, and on which dealings in Dollars are carried on in the London
      interbank market and (ii) for all other purposes a day (other than a Saturday
      or
      Sunday) on which banks are open for business in Chicago, Illinois and New York,
      New York.

     

    “Capital
      Stock” means (i) in the case of a corporation, capital stock, (ii) in the
      case of an association or business entity, any and all shares, interests,
      participations, rights or other equivalents (however designated) of corporate
      stock, (iii) in the case of a partnership, partnership interests (whether
      general or limited) and (iv) any other interest or participation that confers
      on
      a Person the right to receive a share of the profits and losses of, or
      distributions of assets of, the issuing Person.

     

    “Capitalized
      Lease” of a Person means any lease of property by such Person as lessee
      which would be capitalized on a balance sheet of such Person prepared in
      accordance with Agreement Accounting Principles.

     

    “Capitalized
      Lease Obligations” of a Person means the amount of the obligations of such
      Person under Capitalized Leases which would be capitalized on a balance sheet
      of
      such Person prepared in accordance with Agreement Accounting
      Principles.

     

    “Cash
      Equivalents” means (i) marketable direct obligations issued or
      unconditionally guaranteed by the United States government and backed by the
      full faith and credit of the United States government; (ii) domestic and
      Eurodollar certificates of deposit and time deposits, bankers’ acceptances and
      floating rate certificates of deposit issued by any commercial bank organized
      under the laws of the United States, any state thereof, the District of
      Columbia, any foreign bank, or its branches or agencies (fully protected against
      currency fluctuations for any such deposits with a term of more than ninety
      (90)
      days); (iii) shares of money market, mutual or similar funds having assets
      in
      excess of $100,000,000 and at least 95% of the investments of which are limited
      to investment grade securities (i.e., securities rated at least Baa by Moody’s
      Investors Service, Inc. or at least BBB by Standard & Poor’s Ratings Group);
      and (iv) commercial paper of United States and foreign banks and bank holding
      companies and their subsidiaries and United States and foreign finance,
      commercial industrial or utility companies which, at the time of acquisition,
      are rated A-1 (or better) by Standard & Poor’s Ratings Group or P-1 by
      Moody’s Investors Service, Inc.; provided that the maturities of such Cash
      Equivalents described in the foregoing clauses (i) through (iv) shall not exceed
      365 days; (v) repurchase obligations of any commercial bank organized under
      the
      laws of the United States, any state thereof, the District of Columbia, any
      foreign bank, or its branches or agencies having a term not more than thirty
      (30) days, with respect to securities issued or fully guaranteed or insured
      by
      the United States government; (vi) securities with maturities of one year or
      less from the date of acquisition issued or fully guaranteed by any state,
      commonwealth, territory, political subdivision, taxing authority or by any
      foreign government, the securities of which state, commonwealth, territory,
      political subdivision, taxing authority or foreign government (as the case
      may
      be) are rated at least BBB by Standard & Poor’s Ratings Group or at least
      Baa by Moody’s Investors Service, Inc.; (vii) securities with maturities of one
      year or less from the date of acquisition backed by standby letters of credit
      issued by any commercial bank organized under the laws of the United States,
      any
      state thereof or the District of Columbia (which commercial bank shall have
      a
      short-term debt rating of  A-1 (or better) by Standard & Poor’s
      Ratings Group or P-1 by Moody’s Investors Service, Inc.), or by any foreign bank
      (which foreign bank shall have a rating of B or better from Thomson BankWatch
      Global Issuer Rating or, if not rated by Thomson BankWatch Global Issuer Rating,
      which foreign bank shall be an institution acceptable to the Administrative
      Agent), or its branches or agencies; or (viii) shares of money market mutual
      or
      similar funds at least 95% of the assets of which are invested in the types
      of
      investments satisfying the requirements of clauses (i) through (vii) of this
      definition.

     

    “Change”
is
      defined in Section 4.2 hereof.

     

    “Change
      of
      Control” means an event or series of events by which:

     

    (i)  any
“person”
or
      “group” (within the meaning of Sections 13(d) and 14(d)(2) of the Securities
      Exchange Act of 1934) becomes the “beneficial owner” (as defined in Rule 13d-3
      under the Securities Exchange Act of 1934), directly or indirectly, of thirty
      percent (30%) or more of the voting power of the then outstanding Capital Stock
      of the Borrower entitled to vote generally in the election of the directors
      of
      the Borrower;

     

    (ii)  during
      any period
      of 12 consecutive calendar months, the board of directors of the Borrower shall
      cease to have as a majority of its members individuals who either:

     

    (a)  were
      directors of
      the Borrower on the first day of such period, or

     

    (b)  were
      elected or
      nominated for election to the board of directors of the Borrower at the
      recommendation of or other approval by at least a majority of the directors
      then
      still in office at the time of such election or nomination who were directors
      of
      the Borrower on the first day of such period, or whose election or nomination
      for election was so approved;

     

    (iii)  other
      than as a
      result of a transaction not prohibited under the terms of this Agreement, the
      Borrower (a) shall cease to own, of record and beneficially, with sole voting
      and dispositive power, 100% of the outstanding shares of Capital Stock of each
      of the Subsidiary Guarantors or (b) shall cease to have the power, directly
      or
      indirectly, to elect all of the members of the board of directors of each of
      the
      Subsidiary Guarantors; or

     

    (iv)  the
      Borrower
      consolidates with or merges into another corporation or conveys, transfers
      or
      leases all or substantially all of its property to any Person, or any
      corporation consolidates with or merges into the Borrower, in either event
      pursuant to a transaction in which the outstanding Capital Stock of the Borrower
      is reclassified or changed into or exchanged for cash, securities or other
      property.

     

    “Citibank”
      means Citibank, N.A., in its individual capacity, and its
      successors.

     

    “Closing
      Date” means the date of this Agreement.

     

    “Code”
means
      the Internal Revenue Code of 1986, as amended, reformed or otherwise modified
      from time to time.

     

    “Commission”
      means the Securities and Exchange Commission of the United States of America
      and
      any Person succeeding to the functions thereof.

     

    “Commitment”
      means, for each Lender, prior to the Funding Date, the obligation of such Lender
      to make Loans not exceeding the amount set forth on Exhibit A to this
      Agreement opposite its name thereon under the heading “Commitment” or in the
      Assignment and Assumption by which it became a Lender, as such amount may be
      modified from time to time pursuant to the terms of this Agreement or to give
      effect to any applicable Assignment and Assumption.

     

    “Consolidated
      Assets” means the total assets of the Borrower and its Subsidiaries on a
      consolidated basis.

     

    “Consolidated
      Domestic Assets” means the total assets of the Borrower and each of its
      consolidated Subsidiaries that is incorporated under the laws of any
      jurisdiction in the United States.

     

    “Consolidated
      Net Worth” means, as of any date, all amounts which would be included under
      shareholders’ equity (including capital stock, additional paid-in capital and
      retained earnings) on the consolidated balance sheet for the Borrower and its
      consolidated Subsidiaries determined in accordance with Agreement Accounting
      Principles.

     

    “Consolidated
      Total Capitalization” means, as of any date, the sum of (i) Indebtedness of
      the Borrower and its consolidated Subsidiaries and (ii) Consolidated Net Worth,
      all determined in accordance with Agreement Accounting Principles.

     

    “Contaminant”
      means any waste, pollutant, hazardous substance, toxic substance, hazardous
      waste, special waste, petroleum or petroleum-derived substance or waste,
      asbestos or polychlorinated biphenyls (“PCBs”), and includes but is not limited
      to these terms as defined in Environmental, Health or Safety Requirements of
      Law.

     

    “Contingent
      Obligation”, as applied to any Person, means any Contractual Obligation,
      contingent or otherwise, of that Person with respect to any Indebtedness of
      another or other obligation or liability of another, including, without
      limitation, any such Indebtedness, obligation or liability of another directly
      or indirectly guaranteed, endorsed (otherwise than for collection or deposit
      in
      the ordinary course of business), co-made or discounted or sold with recourse
      by
      that Person, or in respect of which that Person is otherwise directly or
      indirectly liable, including Contractual Obligations (contingent or otherwise)
      arising through any agreement to purchase, repurchase, or otherwise acquire
      such
      Indebtedness, obligation or liability or any security therefor, or to provide
      funds for the payment or discharge thereof (whether in the form of loans,
      advances, stock purchases, capital contributions or otherwise), or to maintain
      solvency, assets, level of income, or other financial condition, or to make
      payment other than for value received.  The amount of any Contingent
      Obligation shall be equal to the present value of the portion of the obligation
      so guaranteed or otherwise supported, in the case of known recurring
      obligations, and the maximum reasonably anticipated liability in respect of
      the
      portion of the obligation so guaranteed or otherwise supported assuming such
      Person is required to perform thereunder, in all other cases.

     

    “Contractual
      Obligation”, as applied to any Person, means any provision of any equity or
      debt securities issued by that Person or any indenture, mortgage, deed of trust,
      security agreement, pledge agreement, guaranty, contract, undertaking, agreement
      or instrument, in any case in writing, to which that Person is a party or by
      which it or any of its properties is bound, or to which it or any of its
      properties is subject.  Without in any way limiting the foregoing, as
      used with respect to the Borrower or any of its Subsidiaries, Contractual
      Obligations shall include, without limitation, the Financing Facilities and
      any
      instruments, documents or agreements executed or delivered in connection
      therewith by which the Borrower or such Subsidiaries are bound.

     

    “Controlled
      Group” means the group consisting of (i) any corporation which is a member
      of the same controlled group of corporations (within the meaning of Section
      414(b) of the Code) as the Borrower; (ii) a partnership or other trade or
      business (whether or not incorporated) which is under common control (within
      the
      meaning of Section 414(c) of the Code) with the Borrower; and (iii) a member
      of
      the same affiliated service group (within the meaning of Section 414(m) of
      the
      Code) as the Borrower, any corporation described in clause (i) above or
      any partnership or trade or business described in clause (ii)
      above.

     

    “Covenant
      Leverage Ratio” is defined in Section 7.4(A) hereof.

     

    “Cure
      Loan”
is defined in Section 9.2(iii) hereof.

     

    “Customary
      Permitted Liens” means:

     

    (i)  Liens
      (other than
      Environmental Liens and Liens in favor of the IRS or the PBGC or any Plan)
      with
      respect to the payment of taxes, assessments or governmental charges in all
      cases which are not yet due or (if foreclosure, distraint, sale or other similar
      proceedings shall not have been commenced or any such proceeding after being
      commenced is stayed) which are being contested in good faith by appropriate
      proceedings properly instituted and diligently conducted and with respect to
      which adequate reserves or other appropriate provisions are being maintained
      as
      may be required in accordance with Agreement Accounting Principles;

     

    (ii)  statutory
      Liens of
      landlords and Liens of suppliers, mechanics, carriers, materialmen, warehousemen
      or workmen and other similar Liens imposed by law created in the ordinary course
      of business for amounts not yet due or which are being contested in good faith
      by appropriate proceedings properly instituted and diligently conducted and
      with
      respect to which adequate reserves or other appropriate provisions are being
      maintained as may be required in accordance with Agreement Accounting
      Principles;

     

    (iii)  Liens
      (other than
      Environmental Liens and Liens in favor of the IRS or the PBGC or any Plan)
      incurred or deposits made in the ordinary course of business in connection
      with
      workers’ compensation, unemployment insurance or other types of social security
      benefits or to secure the performance of bids, tenders, sales, contracts (other
      than for the repayment of borrowed money), surety, appeal and performance bonds;
      provided that (A) all such Liens do not in the aggregate materially
      detract from the value of the Borrower’s or such Subsidiary’s assets or property
      taken as a whole or materially impair the use thereof in the operation of the
      Borrower’s or such Subsidiary’s businesses taken as a whole, and (B) all Liens
      securing bonds to stay judgments or in connection with appeals do not secure
      at
      any time an aggregate amount exceeding $30,000,000;

     

    (iv)  Liens
      arising with
      respect to zoning restrictions, easements, licenses, reservations, covenants,
      rights-of-way, utility easements, building restrictions and other similar
      charges or encumbrances on the use of real property which do not in any case
      materially detract from the value of the property subject thereto or interfere
      with the ordinary conduct of the business of the Borrower or any of its
      Subsidiaries;

     

    (v)  Liens
      of attachment
      or judgment with respect to judgments, writs or warrants of attachment, or
      similar process against the Borrower or any of its Subsidiaries which do not
      constitute a Default under Section 8.1(H) hereof;

     

    (vi)  any
      interest or
      title of the lessor in the property subject to any operating lease entered
      into
      by the Borrower or any of its Subsidiaries in the ordinary course of business;
      and

     

    (vii)  Liens
      of commercial
      depository institutions arising in the ordinary course of business constituting
      a statutory or common law right of setoff against amounts on deposit with any
      such institution.

     

    “Default”
      means an event described in Article VIII hereof.

     

    “Designated
      Acquisition” means the merger of the Target with and into the Designated
      Merger Subsidiary in accordance with Delaware General Corporation Law, whereupon
      the separate existence of the Designated Merger Subsidiary shall cease, and
      the
      Target shall be the surviving corporation as a wholly-owned Subsidiary of the
      Borrower, all on the terms and conditions set forth in the Designated
      Acquisition Agreement.

     

    “Designated
      Acquisition Agreement” means that certain Agreement and Plan of Merger,
      dated as of July 12, 2007, by and among the Borrower, the Designated Merger
      Subsidiary and the Target (for the avoidance of doubt, together with all
      exhibits, schedules and appendices thereto).

     

    “Designated
      Acquisition Documents” means the Designated Acquisition Agreement, the
      Designated Acquisition Stockholder Agreement and all other documents,
      instruments and agreements entered into by the Borrower or any of its
      Subsidiaries in connection with the Designated Acquisition.

     

    “Designated
      Acquisition Stockholder Agreement” means that certain Stockholder Agreement,
      dated as of July 12, 2007, by and among the Borrower and the stockholders of
      the
      Target identified as parties thereto (for the avoidance of doubt, together
      with
      all exhibits, schedules and appendices thereto).

     

    “Designated
      Merger Subsidiary” means ETKM, Inc., a Delaware corporation and a direct,
      wholly-owned Subsidiary of the Borrower.

     

    “Disclosed
      Litigation” is defined in Section 6.7 hereof.

     

    “Disqualified
      Stock” means any preferred stock and any Capital Stock that, by its terms
      (or by the terms of any security into which it is convertible or for which
      it is
      exchangeable), or upon the happening of any event, matures or is mandatorily
      redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable
      at
      the option of the holder thereof, in whole or in part, on or prior to the date
      that is ninety-one (91) days after the Termination Date.

     

    “Documentation
      Agent” means Citibank (and its successors) in its capacity as documentation
      agent for the loan transaction evidenced by this Agreement.

     

    “DOL”
means
      the United States Department of Labor and any Person succeeding to the functions
      thereof.

     

    “Dollar”
and
      “$” means dollars in the lawful currency of the United
      States.

     

    “EBIT”  means,
      for any period, on a consolidated basis for the Borrower and its Subsidiaries,
      the sum of the amounts for such period, without duplication, of (i) Net Income,
      plus (ii) Interest Expense to the extent deducted in computing Net
      Income, plus (iii) charges against income for foreign, federal, state and
      local taxes to the extent deducted in computing Net Income, plus (iv)
      non-cash charges (except any non-cash charges that require accrual of a reserve
      for anticipated future cash payments for any period) to the extent deducted
      in
      computing Net Income, plus (v) other extraordinary non-cash charges to
      the extent deducted in computing Net Income, minus (vi) extraordinary
      gains to the extent added in computing Net Income.

     

    “EBITDA”
      means, for any period, on a consolidated basis for the Borrower and its
      Subsidiaries, the sum of the amounts for such period, without duplication,
      of
      (i) EBIT, plus (ii) depreciation expense to the extent deducted in
      computing Net Income, plus (iii) amortization expense, including, without
      limitation, amortization of goodwill and other intangible assets, to the extent
      deducted in computing Net Income.

     

    “Environmental,
      Health or Safety Requirements of Law” means all applicable foreign, federal,
      state and local laws or regulations relating to or addressing pollution or
      protection of the environment, or protection of worker health or safety,
      including, but not limited to, the Comprehensive Environmental Response,
      Compensation and Liability Act, 42 U.S.C. § 9601 etseq., the
      Occupational Safety and Health Act of 1970, 29 U.S.C. § 651
etseq., and the Resource Conservation and Recovery Act of 1976,
      42
      U.S.C. § 6901 etseq., in each case including any amendments
      thereto, any successor statutes, and any regulations promulgated thereunder,
      and
      any state or local equivalent thereof.

     

    “Environmental
      Lien” means a lien in favor of any Governmental Authority for (a) any
      liability under Environmental, Health or Safety Requirements of Law, or (b)
      damages arising from, or costs incurred by such Governmental Authority in
      response to, a Release or threatened Release of a Contaminant into the
      environment.

     

    “Environmental
      Property Transfer Act” means any applicable requirement of law that
      conditions, restricts, prohibits or requires any notification or disclosure
      triggered by the closure of any property or the transfer, sale or lease of
      any
      property or deed or title for any property for environmental reasons, including,
      but not limited to, any so-called “Industrial Site Recovery Act” or “Responsible
      Property Transfer Act.”

     

    “Equipment”
      means all of the Borrower’s and its Subsidiaries’ present and future (i)
      equipment, including, without limitation, machinery, manufacturing,
      distribution, selling, data processing and office equipment, assembly systems,
      tools, molds, dies, fixtures, appliances, furniture, furnishings, vehicles,
      vessels, aircraft, aircraft engines, and trade fixtures, (ii) other tangible
      personal property (other than the Borrower’s or Subsidiary’s Inventory), and
      (iii) any and all accessions, parts and appurtenances attached to any of the
      foregoing or used in connection therewith, and any substitutions therefor and
      replacements, products and proceeds thereof.

     

    “Equity
      Interests” means Capital Stock and all warrants, options or other rights to
      acquire Capital Stock (but excluding any debt security that is convertible
      into,
      or exchangeable for, Capital Stock).

     

    “ERISA”
      means the Employee Retirement Income Security Act of 1974, as amended from
      time
      to time, including (unless the context otherwise requires) any rules or
      regulations promulgated thereunder.

     

    “Eurodollar
      Base
      Rate” means, with respect to any Eurodollar Rate Advance for any Interest
      Period, the rate appearing on Reuters BBA Libor Rates Page 3750 (or on any
      successor or substitute page of such service, or any successor to or substitute
      for such service, providing rate quotations comparable to those currently
      provided on such page of such service which is generally utilized in the
      syndicated loan market, as determined by the Administrative Agent from time
      to
      time for purposes of providing quotations of interest rates applicable to Dollar
      deposits in the London interbank market) at approximately 11:00 a.m., London
      time, two (2) Business Days prior to the commencement of such Interest Period,
      as the rate for Dollar deposits with a maturity comparable to such Interest
      Period.  In the event that such rate is not available at such time for
      any reason, then the “Eurodollar Base Rate” with respect to such
      Eurodollar Rate Advance for such Interest Period shall be the rate at which
      Dollar deposits of $5,000,000 and for a maturity comparable to such Interest
      Period are offered by the principal London office of the Administrative Agent
      in
      immediately available funds in the London interbank market at approximately
      11:00 a.m., London time, two (2) Business Days prior to the commencement of
      such
      Interest Period.

     

    “Eurodollar
      Rate” means, with respect to any Eurodollar Rate Advance for any Interest
      Period, an interest rate per annum (rounded upwards, if necessary, to the next
      1/16 of 1%) equal to (a) the Eurodollar Base Rate for such Interest Period
      multiplied by (b) the Statutory Reserve Rate plus (ii) the Applicable
      Margin plus (iii) at all times from and after December 30, 2007, 0.50%
      per annum (the “Supplemental Margin”).

     

    “Eurodollar
      Rate
      Loan” means a Loan, or portion thereof, which bears interest at the
      Eurodollar Rate.

     

    “Excluded
      Taxes” means, in the case of each Lender or applicable Lending Installation
      and the Administrative Agent, taxes imposed on its overall net income, and
      franchise taxes imposed on it, by (i) the jurisdiction under the laws of which
      such Lender or the Administrative Agent is incorporated or organized or (ii)
      the
      jurisdiction in which the Administrative Agent’s or such Lender’s principal
      executive office or such Lender’s applicable Lending Installation is
      located.

     

    “Existing
      Credit
      Agreement” means that certain Revolving Credit Agreement, dated as of
      November 16, 2004, among the Borrower, the institutions from time to time
      parties thereto as lenders, JPMorgan, as the administrative agent, Bank of
      America, as the syndication agent, and Citibank, as the documentation agent,
      as
      amended by Amendment No. 1 thereto dated as of September 22, 2005, Amendment
      No.
      2 thereto dated as of October 21, 2005 and Amendment No. 3 thereto dated as
      of
      May 15, 2006, and as the same may be further amended, restated, supplemented
      or
      otherwise modified from time to time in a manner that is not materially adverse
      to the interests of the Lenders.

     

    “Existing
      Credit
      Facility” means the credit facility evidenced by the Existing Credit
      Agreement and the subsidiary guarantees and other instruments, documents and
      agreements executed or delivered in connection therewith.

     

    “Facility
      Fee” is defined in Section 2.14(C) hereof.

     

    “Federal
      Funds
      Effective Rate” means, for any day, the weighted average (rounded upwards,
      if necessary, to the next 1/100 of 1%) of the rates per annum on overnight
      Federal funds transactions with members of the Federal Reserve System arranged
      by Federal funds brokers, as published on the next succeeding Business Day
      by
      the Federal Reserve Bank of New York, or, if such rate is not so published
      for
      any day that is a Business Day, the average (rounded upwards, if necessary,
      to
      the next 1/100 of 1%) of the quotations for such day for such transactions
      received by the Administrative Agent from three Federal funds brokers of
      recognized standing selected by it.

     

    “Financing”
      means, with respect to any Person, the issuance or sale by such Person of any
      Disqualified Stock, Equity Interests of such Person or any Indebtedness
      consisting of debt securities (including, without limitation, any syndicated
      loan other than the Loans made hereunder) of such Person; provided, that
      such term shall not include (i) any proceeds of (x) borrowings under the
      Borrower’s Existing Credit Agreement up to the maximum commitment amount in
      effect on the Funding Date or (y) purchases under the Receivables Purchase
      Documents up to the maximum purchase limit in effect on the Funding Date, (ii)
      any borrowings by any Subsidiaries incorporated or organized under the laws
      of
      any foreign jurisdiction under short-term, uncommitted money market lines of
      credit representing ordinary course working capital Indebtedness
      (provided, however, that the Indebtedness referred to in this clause (ii)
      shall in no event include borrowings under any permanent or term financing
      in
      favor of any such foreign Subsidiary, whether consisting of bonds, single-bank
      or syndicated loan facilities or other permanent or term debt securities) or
      (iii) any borrowings under the Borrower’s existing money market lines of credit
      (as the same may be extended or refinanced).

     

    “Financing
      Facilities” means the Existing Credit Facility, the Receivables Purchase
      Facility, the Senior Notes and the Singapore Credit Facility.

     

    “Floating
      Rate
      Loan” means a Loan, or portion thereof, which bears interest by reference to
      the Alternate Base Rate.

     

    “Foreign
      Competition Laws” means competition and foreign investment laws and
      regulations of any jurisdiction outside the United States.

     

    “Foreign
      Employee Benefit Plan” means any employee benefit plan as defined in Section
      3(3) of ERISA which is maintained or contributed to for the benefit of the
      employees of the Borrower or any member of the Controlled Group, but which
      is
      not covered by ERISA pursuant to Section 4(b)(4) of ERISA.

     

    “Foreign
      Pension
      Plan” means any employee pension benefit plan (as defined in Section 3(2) of
      ERISA) which (i) is maintained or contributed to for the benefit of employees
      of
      the Borrower or any other member of the Controlled Group, (ii) is not covered
      by
      ERISA pursuant to Section 4(b)(4) thereof and (iii) under applicable local
      law,
      is required to be funded through a trust or other funding vehicle.

     

    “Funding
      Date” means the date on or after the Closing Date on which the Loans are
      advanced hereunder, subject to the satisfaction of the terms and conditions
      set
      forth in Section 5.1.

     

    “Governmental
      Acts” is defined in Section 3.10(A) hereof.

     

    “Governmental
      Authority” means any nation or government, any federal, state, local or
      other political subdivision thereof and any entity exercising executive,
      legislative, judicial, regulatory or administrative authority or functions
      of or
      pertaining to government, including any authority or other quasi-governmental
      entity established to perform any of such functions.

     

    “Hedging
      Arrangements” is defined in the definition of “Hedging Obligations”
below.

     

    “Hedging
      Obligations” of a Person means any and all obligations of such Person,
      whether absolute or contingent and howsoever and whensoever created, arising,
      evidenced or acquired (including all renewals, extensions and modifications
      thereof and substitutions therefor), under (i) any and all agreements, devices
      or arrangements designed to protect at least one of the parties thereto from
      the
      fluctuations of interest rates, commodity prices, exchange rates or forward
      rates applicable to such party’s assets, liabilities or exchange transactions,
      including, but not limited to, dollar-denominated or cross-currency interest
      rate exchange agreements, forward currency exchange agreements, interest rate
      cap or collar protection agreements, forward rate currency or interest rate
      options, puts and warrants or any similar derivative transactions (“Hedging
      Arrangements”), and (ii) any and all cancellations, buy backs, reversals,
      terminations or assignments of any of the foregoing.

     

    “Holders
      of
      Obligations” means the holders of the Obligations from time to time and
      shall include their respective successors, transferees and assigns.

     

    “Indebtedness”
      of any Person means, without duplication, such Person’s (a) obligations for
      borrowed money, (b) obligations representing the deferred purchase price of
      property or services (other than accounts payable arising in the ordinary course
      of such Person’s business payable on terms customary in the trade), which
      purchase price is due more than six (6) months from the date of incurrence of
      the obligation in respect thereof, provided that the related obligations are
      not
      interest bearing, (c) obligations, whether or not assumed, secured by Liens
      or
      payable out of the proceeds or production from property or assets now or
      hereafter owned or acquired by such Person, (d) obligations which are evidenced
      by notes, acceptances or other instruments, (e) Capitalized Lease Obligations,
      (f) Contingent Obligations in respect of Indebtedness, (g) obligations with
      respect to letters of credit, (h) Off-Balance Sheet Liabilities, (i) Receivables
      Facility Attributed Indebtedness and (j) Disqualified Stock.  The
      amount of Indebtedness of any Person at any date shall be without duplication
      (1) the outstanding balance at such date of all unconditional obligations as
      described above and the maximum liability of any such Contingent Obligations
      at
      such date and (2) in the case of Indebtedness of others secured by a Lien to
      which the property or assets owned or held by such Person is subject, the lesser
      of the fair market value at such date of any asset subject to a Lien securing
      the Indebtedness of others and the amount of the Indebtedness
      secured.

     

    “Indemnified
      Matters”  is defined in Section 10.7(B)
      hereof.

     

    “Indemnitees”
      is defined in Section 10.7(B) hereof.

     

    “Insolvency
      Event” is defined in Section 10.14 hereof.

     

    “Intercompany
      Indebtedness” is defined in Section 10.14 hereof.

     

    “Interest
      Expense” means, for any period, the total interest expense of the Borrower
      and its consolidated Subsidiaries, whether paid or accrued, including, without
      duplication, Off-Balance Sheet Liabilities (including Receivables Facility
      Financing Costs) and the interest component of Capitalized Leases, all as
      determined in conformity with Agreement Accounting Principles.

     

    “Interest
      Expense Coverage Ratio” is defined in Section 7.4(B)
      hereof.

     

    “Interest
      Period” means, with respect to a Eurodollar Rate Loan, a period of one (1),
      two (2), three (3) or six (6) months or other periods to the extent available
      to
      all of the Lenders and agreed to between the Borrower and the Administrative
      Agent (acting on the instructions of all of the Lenders), commencing on a
      Business Day selected by the Borrower on which a Eurodollar Rate Loan is made
      to
      Borrower pursuant to this Agreement.  Such Interest Period shall end
      on (but exclude) the day which corresponds numerically to such date one, two,
      three or six months (or such other period) thereafter; provided,
however, that if there is no such numerically corresponding day in
      such
      next, second, third or sixth succeeding month (or other period), such Interest
      Period shall end on the last Business Day of such next, second, third or sixth
      succeeding month (or other period).  If an Interest Period would
      otherwise end on a day which is not a Business Day, such Interest Period shall
      end on the next succeeding Business Day, provided, however, that
      if said next succeeding Business Day falls in a new calendar month, such
      Interest Period shall end on the immediately preceding Business
      Day.

     

    “Inventory”
      shall mean any and all goods, including, without limitation, goods in transit,
      wheresoever located, whether now owned or hereafter acquired by the Borrower
      or
      any of its Subsidiaries, which are held for sale or lease, furnished under
      any
      contract of service or held as raw materials, work in process or supplies,
      and
      all materials used or consumed in the business of Borrower or any of its
      Subsidiaries, and shall include all right, title and interest of the Borrower
      or
      any of its Subsidiaries in any property the sale or other disposition of which
      has given rise to Receivables and which has been returned to or repossessed
      or
      stopped in transit by the Borrower or any of its Subsidiaries.

     

    “Investment”
      means, with respect to any Person, (i) any purchase or other acquisition by
      that
      Person of any Indebtedness, Equity Interests or other securities, or of a
      beneficial interest in any Indebtedness, Equity Interests or other securities,
      issued by any other Person, (ii) any purchase by that Person of all or
      substantially all of the assets of a business conducted by another Person,
      and
      (iii) any loan, advance (other than deposits with financial institutions
      available for withdrawal on demand, prepaid expenses, accounts receivable,
      advances to employees and similar items made or incurred in the ordinary course
      of business) or capital contribution by that Person to any other Person,
      including all Indebtedness to such Person arising from a sale of property by
      such Person other than in the ordinary course of its business.

     

    “IRS”
means
      the Internal Revenue Service and any Person succeeding to the functions
      thereof.

     

    “JPMorgan”
      means JPMorgan Chase Bank, N.A., in its individual capacity, and its
      successors.

     

    “Lenders”
      means the lending institutions listed on the signature pages of this Agreement
      and their respective successors and assigns.

     

    “Lending
      Installation” means, with respect to a Lender or the Administrative Agent,
      any office, branch, subsidiary or affiliate of such Lender or the Administrative
      Agent.

     

    “Lien”
means
      any lien (statutory or other), mortgage, pledge, hypothecation, assignment,
      deposit arrangement, encumbrance or preference, priority or security agreement
      or preferential arrangement of any kind or nature whatsoever (including, without
      limitation, the interest of a vendor or lessor under any conditional sale,
      Capitalized Lease or other title retention agreement).

     

    “Loan(s)”
      means, with respect to a Lender, such Lender’s portion of the Advance consisting
      of a term loan made pursuant to Section 2.1 hereof, and collectively, all
      Loans, whether made or continued as or converted to Floating Rate Loans or
      Eurodollar Rate Loans.

     

    “Loan
      Documents” means this Agreement, the Subsidiary Guaranty, any Assignment and
      Assumption, any promissory notes issued pursuant to Section 2.12 and all
      other documents, instruments and agreements executed in connection therewith
      or
      contemplated thereby, as the same may be amended, restated, supplemented or
      otherwise modified and in effect from time to time.

     

    “Loan
      Parties” is defined in Section 5.1 hereof.

     

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

     

    “Material
      Adverse Effect” means a material adverse effect upon (a) the business,
      condition (financial or otherwise), operations, performance, properties or
      prospects of the Borrower and its Subsidiaries, taken as a whole, (b) the
      ability of the Borrower and its Subsidiaries, taken as a whole, to perform
      their
      obligations under the Loan Documents in any material respect, or (c) the ability
      of the Lenders or the Administrative Agent to enforce in any material respect
      the Obligations.

     

    “Material
      Domestic Subsidiary” means each consolidated Subsidiary (other than any SPV)
      of the Borrower (a) incorporated under the laws of any jurisdiction in the
      United States and (b) the total assets of which exceed, as at the end of any
      calendar quarter or, in the case of consummation of a Permitted Acquisition,
      at
      the time of consummation of such Permitted Acquisition (calculated by the
      Borrower on a proforma basis taking into account the consummation
      of such Permitted Acquisition), three percent (3.0%) of the Consolidated
      Domestic Assets of the Borrower and its consolidated Subsidiaries (other than
      SPVs).

     

    “Material
      Foreign Subsidiary” means each consolidated Subsidiary (other than any SPV)
      of the Borrower (a) incorporated or organized under the laws of any foreign
      jurisdiction and (b) the total assets of which exceed, as at the end of any
      calendar quarter or, in the case of consummation of a Permitted Acquisition,
      at
      the time of consummation of such Permitted Acquisition (calculated by the
      Borrower on a proforma basis taking into account the consummation
      of such Permitted Acquisition), five percent (5.0%) of the Consolidated Assets
      of the Borrower and its consolidated Subsidiaries (other than
      SPVs).

     

    “Material
      Indebtedness” means (a) any Indebtedness evidenced by the Financing
      Facilities or (b) any other Indebtedness (other than the Indebtedness hereunder)
      of a single class with an aggregate outstanding principal amount equal to or
      greater than $30,000,000.

     

    “Material
      Subsidiaries” means each of the Borrower’s Material Domestic Subsidiaries
      and Material Foreign Subsidiaries.

     

    “Multiemployer
      Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA
      which is, or within the immediately preceding six (6) years was, contributed
      to
      by either the Borrower or any member of the Controlled Group.

     

     “Net
      Cash
      Proceeds” means, with respect to any Financing by any
      Person,  (a) cash or Cash Equivalents (freely convertible into
      Dollars) received by such Person or any Subsidiary of such Person from such
      Financing or (b) cash or Cash Equivalents payments in respect of any other
      consideration received by such Person or any Subsidiary of such Person from
      such
      Financing upon receipt of such cash payments by such Person or such Subsidiary,
      in each case, after (i) provision for all income or other taxes measured by
      or resulting from such Financing and (ii) payment of all brokerage commissions
      and other fees and expenses and commissions related to such
      Financing.

     

    “Net
      Income”
means, for any period, the net earnings (or loss) after taxes of the Borrower
      and its Subsidiaries on a consolidated basis for such period taken as a single
      accounting period determined in conformity with Agreement Accounting
      Principles.

     

    “New
      Subsidiary” is defined in Section 7.3(F).

     

    “Non-ERISA
      Commitments” means

     

    (i)  each
      pension,
      medical, dental, life, accident insurance, disability, group insurance, sick
      leave, profit sharing, deferred compensation, bonus, stock option, stock
      purchase, retirement, savings, severance, stock ownership, performance,
      incentive, hospitalization or other insurance, or other welfare, benefit or
      fringe benefit plan, policy, trust, understanding or arrangement of any kind;
      and

     

    (ii)  each
      employee
      collective bargaining agreement and each agreement, understanding or arrangement
      of any kind, with or for the benefit of any  present or prior officer,
      director, employee or consultant (including, without limitation, each
      employment, compensation, deferred compensation, severance or consulting
      agreement or arrangement and any agreement or arrangement associated with a
      change in ownership of the Borrower or any member of the Controlled
      Group);

     

    to
      which the Borrower or any member of the Controlled Group is a party or with
      respect to which the Borrower or any member of the Controlled Group is or will
      be required to make any payment other than any Plans.

    “Non
      Pro Rata
      Loan” is defined in Section 9.2 hereof.

     

    “Non-U.S.
      Lender” is defined in Section 4.5(iv) hereof.

     

    “Obligations”
      means all Loans, advances, debts, liabilities, obligations, covenants and duties
      owing by the Borrower or any of its Subsidiaries to the Agents, any Lender,
      the
      Arrangers, any Affiliate of the Agents or any Lender, or any Indemnitee, of
      any
      kind or nature, present or future, arising under this Agreement or any other
      Loan Document, whether or not evidenced by any note, guaranty or other
      instrument, whether or not for the payment of money, whether arising by reason
      of an extension of credit, loan, guaranty, indemnification, or in any other
      manner, whether direct or indirect (including those acquired by assignment),
      absolute or contingent, due or to become due, now existing or hereafter arising
      and however acquired.  The term includes, without limitation, all
      interest, charges, expenses, fees, reasonable attorneys’ fees and disbursements,
      reasonable paralegals’ fees (and, after the occurrence and during the
      continuance of a Default, all attorney’s fees and disbursements and paralegals’
fees, whether or not reasonable), and any other sum chargeable to the Borrower
      or any of its Subsidiaries under this Agreement or any other Loan
      Document.

     

    “Off-Balance
      Sheet Liabilities” of a Person means, without duplication, (a) any
      Receivables Facility Attributed Indebtedness and repurchase obligation or
      liability of such Person or any of its Subsidiaries with respect to Receivables
      or notes receivable sold by such Person or any of its Subsidiaries (calculated
      to include the unrecovered investment of purchasers or transferees of
      Receivables or notes receivable or any other obligation of the Borrower or
      such
      transferor to purchasers/transferees of interests in Receivables or notes
      receivables or the agent for such purchasers/transferees), (b) any liability
      under any sale and leaseback transactions which do not create a liability on
      the
      consolidated balance sheet of such Person, (c) any liability under any financing
      lease or so-called “synthetic” lease transaction, or (d) any obligations arising
      with respect to any other transaction which is the functional equivalent of
      or
      takes the place of borrowing but which does not constitute a liability on the
      consolidated balance sheets of such Person and its Subsidiaries.

     

    “Originators”
      means the Borrower and/or any of its Subsidiaries in their respective capacities
      as parties to any Receivables Purchase Documents, as sellers or transferors
      of
      any Receivables and Related Security in connection with a Permitted Receivables
      Transfer.

     

    “Other
      Taxes” is defined in Section 4.5 hereof.

     

    “Participant”
      is defined in Section 13.2(A) hereof.

     

    “Payment
      Date” means the last day of each March, June, September and
      December.

     

    “PBGC”
means
      the Pension Benefit Guaranty Corporation, or any successor thereto.

     

    “Permitted
      Acquisition” is defined in Section 7.3(F) hereof.

     

    “Permitted
      Existing Contingent Obligations” means the Contingent Obligations of the
      Borrower and its Subsidiaries identified on Schedule 1.1.3 to this
      Agreement.

     

    “Permitted
      Existing Investments” means the Investments of the Borrower and its
      Subsidiaries identified on Schedule 1.1.1 to this Agreement.

     

    “Permitted
      Existing Liens” means the Liens on assets of the Borrower and its
      Subsidiaries identified on Schedule 1.1.2 to this Agreement.

     

    “Permitted
      Receivables Transfer” means (i) a sale or other transfer by an Originator to
      a SPV of Receivables and Related Security for fair market value and without
      recourse (except for limited recourse typical of such structured finance
      transactions), and/or (ii) a sale or other transfer by a SPV to (a) purchasers
      of or other investors in such Receivables and Related Security or (b) any other
      Person (including a SPV) in a transaction in which purchasers or other investors
      purchase or are otherwise transferred such Receivables and Related Security,
      in
      each case pursuant to and in accordance with the terms of the Receivables
      Purchase Documents.

     

    “Person”
      means any individual, corporation, firm, enterprise, partnership, trust,
      incorporated or unincorporated association, joint venture, joint stock company,
      limited liability company or other entity of any kind, or any government or
      political subdivision or any agency, department or instrumentality
      thereof.

     

    “Plan”
means
      an employee benefit plan defined in Section 3(3) of ERISA in respect of which
      the Borrower or any member of the Controlled Group is, or within the immediately
      preceding six (6) years was, an “employer” as defined in Section 3(5) of
      ERISA.

     

    “Prime
      Rate”
means the rate of interest per annum publicly announced from time to time
      by
      JPMorgan as its prime rate in effect at its principal office in New York City;
      each change in the Prime Rate shall be effective from and including the date
      such change is publicly announced as being effective.

     

     “Pro
      Rata
      Share” means, prior to the Funding Date, with respect to any Lender, the
      percentage obtained by dividing (A) such Lender’s Commitment at such time (in
      each case, as adjusted from time to time in accordance with the provisions
      of
      this Agreement) by (B) the Aggregate Commitment at such time; provided,
however, that (i) from and after the Funding Date, then “Pro Rata Share”
means the percentage obtained by dividing (x) the aggregate  principal
      balance of such Lender’s Loans at such time, by (y) the aggregate outstanding
      balance of all Loans at such time, and (ii) if all of the Commitments have
      terminated prior to the Funding Date, then “Pro Rata Share” means the percentage
      obtained by dividing (x) such Lender’s Commitment immediately prior to such
      termination by (y) the Aggregate Commitment immediately prior to such
      termination.

     

    “Purchasers”
      is defined in Section 13.3(A) hereof.

     

    “Receivable(s)”
      means and includes all of the Borrower’s and its Subsidiaries’ presently
      existing and hereafter arising or acquired accounts, accounts receivable, and
      all present and future rights of the Borrower and its Subsidiaries to payment
      for goods sold or leased or for services rendered (except those evidenced by
      instruments or chattel paper), whether or not they have been earned by
      performance, and all rights in any merchandise or goods which any of the same
      may represent, and all rights, title, security and guaranties with respect
      to
      each of the foregoing, including, without limitation, any right of stoppage
      in
      transit.

     

    “Receivables
      and
      Related Security” means the Receivables and the related security and
      collections with respect thereto which are sold or transferred by any Originator
      or SPV in connection with any Permitted Receivables Transfer.

     

    “Receivables
      Facility Attributed Indebtedness” means the amount of obligations
      outstanding under a receivables purchase facility on any date of determination
      that are characterized as principal on the balance sheet of the Borrower, or
      would be so characterized as principal if such facility were structured as
      a
      secured lending transaction rather than as a purchase.

     

    “Receivables
      Facility Financing Costs” means such portion of the cash fees, service
      charges, and other costs, as well as all collections or other amounts retained
      by purchasers of receivables pursuant to a receivables purchase facility, which
      are in excess of amounts paid to the Borrower and its consolidated Subsidiaries
      under any receivables purchase facility for the purchase of receivables pursuant
      to such facility and are the equivalent of the interest component of the
      financing if the transaction were characterized as an on-balance sheet
      transaction.

     

    “Receivables
      Purchase Documents” means (i) the 2000 Receivables Sale Agreement and (ii)
      the 2000 Receivables Purchase Agreement, or any other series of receivables
      purchase or sale agreements generally consistent with terms contained in
      comparable structured finance transactions pursuant to which an Originator
      or
      Originators sell or transfer to SPVs all of their respective right, title and
      interest in and to certain  Receivables and Related Security for
      further sale or transfer to other purchasers of or investors in such assets
      (in
      any such case, together with, the other documents, instruments and agreements
      executed in connection therewith), as any such agreements may be amended,
      restated, supplemented or otherwise modified from time to time, or any
      replacement, refinancing or substitution therefor consistent with the foregoing
      provisions of this definition.

     

    “Receivables
      Purchase Facility” means the securitization facility made available to the
      Borrower, pursuant to which the Receivables and Related Security of the
      Originators are transferred to one or more SPVs, and thereafter to certain
      investors, pursuant to the terms and conditions of the Receivables Purchase
      Documents.

     

    “Register”
      is defined in Section 13.3(D) hereof.

     

    “Regulation
      D” means Regulation D of the Board as from time to time in effect and any
      successor thereto or other regulation or official interpretation of said Board
      relating to reserve requirements applicable to member banks of the Federal
      Reserve System.

     

    “Regulation
      T” means Regulation T of the Board as from time to time in effect and any
      successor or other regulation or official interpretation of said Board relating
      to the extension of credit by and to brokers and dealers of securities for
      the
      purpose of purchasing or carrying margin stock (as defined
      therein).

     

    “Regulation
      U” means Regulation U of the Board as from time to time in effect and any
      successor or other regulation or official interpretation of said Board relating
      to the extension of credit by banks, non-banks and non-broker lenders for the
      purpose of purchasing or carrying Margin Stock applicable to member banks of
      the
      Federal Reserve System.

     

    “Regulation
      X” means Regulation X of the Board as from time to time in effect and any
      successor or other regulation or official interpretation of said Board relating
      to the extension of credit by foreign lenders for the purpose of purchasing
      or
      carrying margin stock (as defined therein).

     

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

     

    “Release”
      means any release, spill, emission, leaking, pumping, injection, deposit,
      disposal, discharge, dispersal, leaching or migration into the environment,
      including the movement of Contaminants through or in the air, soil, surface
      water or groundwater.

     

     “Relevant
      Transaction Documents” means, (i) as of the Closing Date, the Loan Documents
      and (ii) from and after the Funding Date, all Transaction
      Documents.

     

    “Replacement
      Lender” is defined in Section 2.19 hereof.

     

    “Reportable
      Event” means a reportable event as defined in Section 4043 of ERISA and the
      regulations issued under such section, with respect to a Plan, excluding,
      however, such events as to which the PBGC by regulation waived the requirement
      of Section 4043(a) of ERISA that it be notified within thirty (30) days after
      such event occurs.

     

    “Required
      Lenders” means Lenders whose Pro Rata Shares, in the aggregate, are greater
      than fifty percent (50%); provided, however, that, if any Lender
      shall have failed to fund its Pro Rata Share of the Advance, which such Lender
      is obligated to fund under the terms of this Agreement and any such failure
      has
      not been cured, then for so long as such failure continues, “Required Lenders”
means Lenders (excluding all Lenders whose failure to fund their respective
      Pro
      Rata Shares of such Loans has not been so cured) whose Pro Rata Shares represent
      greater than fifty percent (50%) of the aggregate Pro Rata Shares of such
      Lenders; providedfurther, however, that, from and after the
      Funding Date, “Required Lenders” means Lenders (without regard to such Lenders’
performance of their respective obligations hereunder) whose aggregate ratable
      shares (stated as a percentage) of the aggregate outstanding principal balance
      of all Loans are greater than fifty percent (50%).

     

    “Requirements
      of
      Law” means, as to any Person, the charter and by-laws or other
      organizational or governing documents of such Person, and any law, rule or
      regulation, or determination of an arbitrator or a court or other Governmental
      Authority, in each case applicable to or binding upon such Person or any of
      its
      property or to which such Person or any of its property is subject including,
      without limitation, the Securities Act of 1933, the Securities Exchange Act
      of
      1934, the Hart-Scott-Rodino Antitrust Improvements Act, as amended, Foreign
      Competition Laws, Regulations T, U and X, ERISA, the Fair Labor Standards Act,
      the Worker Adjustment and Retraining Notification Act, Americans with
      Disabilities Act of 1990, and any certificate of occupancy, zoning ordinance,
      building, environmental or land use requirement or permit or environmental,
      labor, employment, occupational safety or health law, rule or regulation,
      including Environmental, Health or Safety Requirements of Law.

     

    “Risk-Based
      Capital Guidelines” is defined in Section 4.2 hereof.

     

    “Senior
      Management Team” means (a) each Authorized Officer, the chief executive
      officer, secretary or any other member of management of the Borrower and (b)
      any
      chief executive officer, president, vice president, chief financial officer,
      treasurer, secretary or any other member of management of any Subsidiary
      Guarantor.

     

    “Senior
      Note
      Purchase Agreements” means, collectively, the 2003 Note Purchase Agreement,
      the 2004 Note Purchase Agreement, the 2005 Note Purchase Agreement and the
      2006
      Note Purchase Agreement.

     

    “Senior
      Notes” means, collectively, the 2003 Senior Notes, the 2004 Senior Notes,
      the 2005 Senior Notes and the 2006 Senior Notes.

     

    “Singapore
      Credit Agreement” means that certain Multicurrency Revolving Credit Facility
      Agreement, dated 24 August 2005, among Energizer Asia Investments Pte. Ltd.,
      a
      company organized under the laws of Singapore, Energizer Singapore Pte. Ltd.,
      a
      company organized under the laws of Singapore, Sonca Products Ltd., a company
      organized under the laws of Hong Kong, and Schick Asia Limited, a company
      organized under the laws of Hong Kong, as the borrowers and as guarantors
      thereunder, the Borrower, as a guarantor thereunder, the financial institutions
      from time to time parties thereto, Citigroup Global Markets Singapore Pte.
      Ltd.
      and Standard Chartered Bank, as the arrangers thereunder, and Citicorp
      Investment Bank (Singapore) Limited, as the agent, under which the financial
      institutions party thereto have committed to make loans and other extensions
      of
      credit to the borrowers thereunder in an original aggregate principal equivalent
      amount of up to US$325,000,000, which may be funded in Dollars or Singapore
      dollars, as amended by that certain Amendment Agreement dated as of September
      28, 2005, the Second Amendment Agreement dated as of November 8, 2005 and the
      Third Amendment Agreement dated as of May 15, 2006, and as the same may be
      further amended, restated, supplemented, modified, extended, or refinanced
      or
      replaced (to the extent such refinancing or replacement is with the proceeds
      borrowed under another credit agreement) from time to time in a manner that
      is
      not materially adverse to the interests of the Lenders.

     

    “Singapore
      Credit Facility” means the credit facility evidenced by the Singapore Credit
      Agreement, the Singapore Guarantees and the other instruments, documents and
      agreements executed or delivered in connection therewith.

     

    “Singapore
      Guarantees” means those certain guarantees of the Indebtedness and other
      obligations of the borrowers under the Singapore Credit Agreement by the
      Borrower and each member of the Singapore Regional Group, as the same may be
      amended, restated, supplemented, modified, extended, refinanced or replaced
      from
      time to time in a manner that is not materially adverse to the interests of
      the
      Lenders.

     

    “Singapore
      Regional Group” means each of Energizer Asia Investments Pte.
      Ltd.,  a company organized under the laws of Singapore, Energizer
      Singapore Pte. Ltd., a company organized under the laws of Singapore, Sonca
      Products Ltd., a company organized under the laws of Hong Kong, and Schick
Asia Limited, a company organized under the laws of Hong Kong.

     

    “Solvent”
      means, when used with respect to any Person, that at the time of
      determination:

     

    (i)  the
      fair value of
      its assets (both at fair valuation and at present fair saleable value) is equal
      to or in excess of the total amount of its liabilities, including, without
      limitation, contingent liabilities; and

     

    (ii)  it
      is then able and
      believes that it will be able to pay its debts as they mature; and

     

    (iii)  it
      has capital
      sufficient to carry on its business as conducted and as proposed to be
      conducted.

     

    With
      respect to
      contingent liabilities (such as litigation and guarantees), such liabilities
      shall be computed at the amount which, in light of all the facts and
      circumstances existing at the time, represent the amount which can be reasonably
      be expected to become an actual or matured liability.

    “SPV”
means
      any special purpose entity established for the purpose of purchasing receivables
      in connection with a receivables securitization transaction permitted under
      the
      terms of this Agreement.

     

    “Statutory
      Reserve Rate” means a fraction (expressed as a decimal), the numerator of
      which is the number one and the denominator of which is the number one minus
      the
      aggregate of the maximum reserve percentages (including any marginal, special,
      emergency or supplemental reserves) expressed as a decimal established by the
      Board to which the Administrative Agent is subject with respect to the
      Eurodollar Rate, for eurocurrency funding (currently referred to as
“Eurocurrency Liabilities” in Regulation D of the Board).  Such
      reserve percentages shall include those imposed pursuant to such Regulation
      D.  Eurodollar Rate Loans shall be deemed to constitute eurocurrency
      funding and to be subject to such reserve requirements without benefit of or
      credit for proration, exemptions or offsets that may be available from time
      to
      time to any Lender under such Regulation D or any comparable
      regulation.  The Statutory Reserve Rate shall be adjusted
      automatically on and as of the effective date of any change in any reserve
      percentage.

     

    “Subsidiary”
      of a Person means (i) any corporation more than 50% of the outstanding
      securities having ordinary voting power of which shall at the time be owned
      or
      controlled, directly or indirectly, by such Person or by one or more of its
      Subsidiaries or by such Person and one or more of its Subsidiaries, or (ii)
      any
      partnership, limited liability company, association, joint venture or similar
      business organization more than 50% of the ownership interests having ordinary
      voting power of which shall at the time be so owned or
      controlled.  Unless otherwise expressly provided, all references
      herein to a “Subsidiary” means a Subsidiary of the Borrower.  For the
      avoidance of doubt, from and after the Funding Date, “Subsidiary” shall mean
      each Subsidiary of the Borrower after giving effect to the Designated
      Acquisition, and accordingly, shall include the Target (as the successor by
      merger with and into the Designated Merger Subsidiary) and its respective
      Subsidiaries.

     

    “Subsidiary
      Guarantors” means (i) as of the Funding Date, all of the Borrower’s Material
      Domestic Subsidiaries and all other Subsidiaries which are required to become
      Guarantors pursuant to Section 7.3(Q) as of such date, giving
proforma effect to the consummation of the Designated Acquisition;
      (ii) all New Subsidiaries which are Material Domestic Subsidiaries and which
      have satisfied the provisions of Section 7.2(K)(a); (iii) all of the
      Borrower’s Subsidiaries which become Material Domestic Subsidiaries and which
      have satisfied the provisions of Section 7.2(K)(b); and (iv) all other
      domestic Subsidiaries which become Subsidiary Guarantors in satisfaction of
      the
      provisions of Section 7.2(K)(c)(i) or any Subsidiaries which become
      Subsidiary Guarantors in satisfaction of the provisions of Section
      7.2(K)(c)(ii), in each case with respect to clauses (i) through
(iv) above, other than the SPVs and together with their respective
      successors and assigns.

     

    “Subsidiary
      Guaranty” means that certain Guaranty dated as of the Closing Date, executed
      by the Subsidiary Guarantors in favor of the Administrative Agent, for the
      ratable benefit of the Lenders, as it may be amended, modified, supplemented
      and/or restated (including to add new Subsidiary Guarantors), and as in effect
      from time to time.

     

    “Supplement”
      shall have the meaning set forth in Section 7.2(K).

     

    “Supplemental
      Margin” is defined in the definition of “Eurodollar Rate”
above.

     

    “Syndication
      Agent” means Bank of America (and its successors) in its capacity as
      syndication agent for the loan transaction evidenced by this
      Agreement.

     

    “Target”
      means Playtex Products, Inc., a Delaware corporation.

     

    “Target
      Credit
      Agreement” means, collectively (i) that certain Credit Agreement, dated as
      of February 19, 2004, among the Borrower, the other credit parties party
      thereto, General Electric Capital Corporation, the other financial institutions
      party thereto and GECC Capital Markets Group Inc. and (ii) that certain Credit
      Agreement, dated as of November 28, 2005, among Playtex Limited, GE Canada
      Finance Holding Company and the other parties thereto, each as amended,
      restated, supplemented or otherwise modified prior to the Funding
      Date.

     

    “Target
      Indentures” means any and all indentures governing each series of Target
      Notes, as supplemented through the Funding Date.

     

    “Target
      Notes” means (a) the Target’s 8% Senior Secured Notes due 2011 and (b) the
      Target’s 9 3/8% Senior Subordinated Notes due 2011.

     

    “Taxes”
      means any and all present or future taxes, duties, levies, imposts, deductions,
      charges or withholdings, and any and all liabilities with respect to the
      foregoing, but excluding Excluded Taxes.

     

    “Termination
      Date” means the earliest to occur of (a) September 12, 2008, (b) the date of
      termination in whole of the Aggregate Commitment pursuant to Section 2.5
      or Section 9.1 hereof and (c) if the Designated Acquisition has not
      occurred prior thereto, December 31, 2007.

     

    “Termination
      Event” means (i) a Reportable Event with respect to any Benefit Plan; (ii)
      the withdrawal of the Borrower or any member of the Controlled Group from a
      Benefit Plan during a plan year in which the Borrower or such Controlled Group
      member was a “substantial employer” as defined in Section 4001(a)(2) of ERISA
      with respect to such plan; (iii) the imposition of an obligation under Section
      4041 of ERISA to provide affected parties written notice of intent to terminate
      a Benefit Plan in a distress termination described in Section 4041(c) of ERISA;
      (iv) the institution by the PBGC or any foreign governmental authority of
      proceedings to terminate or appoint a trustee to administer a Benefit Plan
      or
      Foreign Pension Plan; (v) any event or condition which might constitute grounds
      under Section 4042 of ERISA for the termination of, or the appointment of a
      trustee to administer, any Benefit Plan; or (vi) the partial or complete
      withdrawal of the Borrower or any member of the Controlled Group from a
      Multiemployer Plan.

     

    “Transaction
      Documents” means the Loan Documents and the Designated Acquisition
      Documents.

     

    “Transactions”
      means (a) the financing transactions evidenced by this Agreement and the other
      Loan Documents and (b) the Designated Acquisition.

     

    “Trigger
      Quarter” is defined in Section 7.4(A) hereof.

     

    “2000
      Receivables Purchase Agreement” means that certain Receivables Purchase
      Agreement, dated as of April 4, 2000, as amended, extended or replaced in a
      manner permitted by this Agreement, among Energizer Receivables Funding
      Corporation, a Delaware corporation, as the seller thereunder, Eveready Battery
      Company, a Delaware Corporation, as the servicer thereunder, Falcon Asset
      Securitization Corporation and Bank One, NA, as the agent
      thereunder

     

    “2000
      Receivables Sale Agreement” means that certain Receivables Sale Agreement,
      dated as of April 4, 2000, as amended, extended or replaced in a manner
      permitted by this Agreement, between Eveready Battery Company, Inc., a Delaware
      corporation, and Energizer Receivables Funding Corporation, a Delaware
      corporation and an SPV.

     

    “2003
      Note
      Purchase Agreement” means that certain Note Purchase Agreement dated as of
      June 1, 2003 among the Borrower and the “Purchasers” referred to therein, under
      which the Borrower has issued senior unsecured notes in an original aggregate
      principal amount of $700,000,000 (the “2003 Senior Notes”), which shall be pari
      passu with the Obligations hereunder, as such 2003 Senior Notes and such Note
      Purchase Agreement may be amended, restated, supplemented, modified, extended,
      or refinanced or replaced (to the extent such refinancing or replacement is
      with
      the proceeds of another private placement issuance), from time to time
      in a manner that is not materially adverse to the interests of the
      Lenders.

     

    “2003
      Senior
      Notes” is defined in the definition of “2003 Note Purchase Agreement”
above.

     

    “2004
      Note
      Purchase Agreement” means that certain Note Purchase Agreement dated as of
      November 1, 2004 among the Borrower and the “Purchasers” referred to therein,
      under which the Borrower has issued senior unsecured notes in an original
      aggregate principal amount of $300,000,000 (the “2004 Senior Notes”), which
      shall be pari passu with the Obligations hereunder, as such 2004 Senior Notes
      and such Note Purchase Agreement may be amended, restated, supplemented,
      modified, extended, or refinanced or replaced (to the extent such refinancing
      or
      replacement is with the proceeds of another private placement issuance), from
      time to time in a manner that is not materially adverse to the interests of
      the
      Lenders.

     

    “2004
      Senior
      Notes” is defined in the definition of “2004 Note Purchase Agreement”
above.

     

    “2005
      Note
      Purchase Agreement” means that certain Note Purchase Agreement dated as of
      August 1, 2005 among the Borrower and the “Purchasers” referred to therein,
      under which the Borrower has issued senior unsecured notes in an original
      aggregate principal amount of $325,000,000 (the “2005 Senior Notes”), which
      shall be pari passu with the Obligations hereunder, as such 2005 Senior Notes
      and such Note Purchase Agreement may be amended, restated, supplemented,
      modified, extended, or refinanced or replaced (to the extent such refinancing
      or
      replacement is with the proceeds of another private placement issuance), from
      time to time in a manner that is not materially adverse to the interests of
      the
      Lenders.

     

    “2005
      Senior
      Notes” is defined in the definition of “2005 Note Purchase Agreement”
above.

     

    “2006
      Note
      Purchase Agreement” means that certain Note Purchase Agreement dated as of
      July 6, 2006 among the Borrower and the “Purchasers” referred to therein, under
      which the Borrower has issued senior unsecured notes in an original aggregate
      principal amount of $500,000,000 (the “2006 Senior Notes”), which shall be pari
      passu with the Obligations hereunder, as such 2006 Senior Notes and such Note
      Purchase Agreement may be amended, restated, supplemented, modified, extended,
      or refinanced or replaced (to the extent such refinancing or replacement is
      with
      the proceeds of another private placement issuance), from time to time in a
      manner that is not materially adverse to the interests of the
      Lenders.

     

    “2006
      Senior
      Notes” is defined in the definition of “2006 Note Purchase Agreement”
above.

     

    “Type”
      means, with respect to any Loan, its nature as a Floating Rate Loan or a
      Eurodollar Rate Loan.

     

    “Unmatured
      Default” means an event which, but for the lapse of time or the giving of
      notice, or both, would constitute a Default.

     

    The
      foregoing
      definitions shall be equally applicable to both the singular and plural forms
      of
      the defined terms.  Any accounting terms used in this Agreement which
      are not specifically defined herein shall have the meanings customarily given
      them in accordance with generally accepted accounting principles in existence
      as
      of the date hereof.

     

    References.  Any
      references to Subsidiaries of the Borrower shall not in any way be construed
      as
      consent by the Administrative Agent or any Lender to the establishment,
      maintenance or acquisition of any Subsidiary, except as may otherwise be
      permitted hereunder.

     

    THE
      TERM LOAN FACILITY

     

    Loans.

     

    Upon
      the
      satisfaction of the conditions precedent set forth in Section 5.1 each
      Lender severally and not jointly agrees, on the terms and conditions set forth
      in this Agreement, to make a term loan, consisting of a single draw, on the
      Funding Date, in Dollars, to the Borrower in an aggregate amount not to exceed
      such Lender’s Pro Rata Share of the Aggregate
      Commitment.  Notwithstanding the foregoing, on the earlier of the
      Funding Date (after giving effect to the foregoing draw) and December 31, 2007,
      the Aggregate Commitment and each Lender’s Commitment shall be automatically and
      permanently terminated to the extent of the undrawn Aggregate Commitment, as
      more specifically described in Section 2.5(b).  Each Loan under
      this Section 2.1 shall consist of Loans made by each Lender ratably in
      proportion to such Lender’s respective Pro Rata Share.  No Loan shall
      be reborrowed once repaid.

     

    Borrowing/Election
      Notice.  The Borrower shall deliver to the Administrative Agent a
      Borrowing/Election Notice, signed by it, in accordance with the terms of
Section 2.7.  The Administrative Agent shall promptly notify
      each Lender of such request.

     

    Making
      of
      Loans.  Promptly after receipt of the Borrowing/Election Notice
      under Section 2.7 in respect of the Loans, the Administrative Agent shall
      notify each Lender by telex or telecopy, or other similar form of transmission,
      of the requested Loans.  Each Lender shall make available its Loan in
      accordance with the terms of Section 2.6.  The Administrative
      Agent will promptly make the funds so received from the Lenders available to
      the
      Borrower at the Administrative Agent’s office in Chicago, Illinois on the
      Funding Date and shall disburse such proceeds in accordance with the Borrower’s
      disbursement instructions set forth in such Borrowing/Election
      Notice.  The failure of any Lender to deposit the amount described
      above with the Administrative Agent on the Funding Date shall not relieve any
      other Lender of its obligations hereunder to make its Loan on the Funding
      Date.

     

    Repayment
      of
      Loans.  The Loans shall be due and payable in full on the
      Termination Date.

     

    Rate
      Options for
      all Loans; Maximum Interest Periods.  The Loans may be Floating
      Rate Loans or Eurodollar Rate Loans, or a combination thereof, selected by
      the
      Borrower in accordance with Section 2.9.  The Borrower may
      select, in accordance with Section 2.9, rate options and Interest Periods
      applicable to the Loans; provided that there shall be no more than eight
      (8) Interest Periods in effect with respect to all of the Loans at any
      time.

     

    Prepayments.

     

    Optional
      Prepayments.  The Borrower may from time to time and at any time
      upon at least one (1) Business Day’s prior written notice repay or prepay,
      without penalty or premium all or any part of outstanding Floating Rate Loans
      in
      an aggregate minimum amount of $10,000,000 and in integral multiples of
      $1,000,000 in excess thereof.  Eurodollar Rate Loans may be
      voluntarily repaid or prepaid prior to the last day of the applicable Interest
      Period, subject to the indemnification provisions contained in Section
      4.4, provided, that the Borrower may not so prepay Eurodollar Rate
      Loans unless it shall have provided at least three (3) Business Days’ prior
      written notice to the Administrative Agent of such prepayment and
provided, further, that optional prepayments of Eurodollar Rate
      Loans made pursuant to Section 2.1 with respect to the same Interest
      Period shall be for the entire amount of all such outstanding Eurodollar Rate
      Loans.  No optional prepayments may be reborrowed once
      made.

     

    Mandatory
      Prepayments.  Upon the consummation of any Financing by the
      Borrower or any Subsidiary, within three (3) Business Days after the Borrower’s
      or any of its Subsidiaries’ receipt of any Net Cash Proceeds from such
      Financing, the Borrower shall make a mandatory prepayment of the Obligations
      in
      an amount equal to one hundred percent (100%) of such Net Cash
      Proceeds.  The amount of each such mandatory prepayment shall be
      applied ratably to the Loans.  On the date any such prepayment is
      received by the Administrative Agent, such prepayment shall be applied first
      to
      Floating Rate Loans and to any Eurodollar Rate Loans maturing on such date
      and
      then to subsequently maturing Eurodollar Rate Loans.  All mandatory
      prepayments hereunder shall be accompanied by (x) accrued interest and (y)
      break
      fund payments pursuant to Section 4.4.  Nothing in this
Section 2.4(b) shall be construed to constitute the Lenders’ consent
      to any Financing which is not expressly permitted by the terms of this
      Agreement.  No mandatory prepayments may be reborrowed once
      made.

     

    Reduction
      of
      Commitments.

     

    Prior
      to the
      Funding Date, the Borrower may permanently reduce the Aggregate Commitment
      in
      whole, or in part ratably among the Lenders, in an aggregate minimum amount
      of
      $25,000,000 and integral multiples of $5,000,000 in excess of that amount upon
      at least three (3) Business Days’ prior written notice to the Administrative
      Agent, which notice shall specify the amount of any such reduction.

     

    On
      the earlier of
      the Funding Date (after giving effect to the draw made thereon) and December
      31,
      2007, (x) the undrawn Aggregate Commitment shall be automatically and
      permanently terminated and (y) each Lender’s undrawn Commitment shall be
      automatically and permanently terminated in proportion to its applicable Pro
      Rata Share of the Aggregate Commitment.

     

    All
      accrued
      Facility Fees shall be payable on the effective date of any termination of
      the
      obligations of the Lenders to make Loans hereunder or any reduction of the
      Aggregate Commitment on the amount so reduced.

     

    Method
      of
      Borrowing.  Not later than 2:00 p.m. (Chicago time) on the Funding
      Date, each Lender shall make available its Loan, in immediately available funds,
      to the Administrative Agent at its address specified pursuant to Article
      XIV.  The Administrative Agent will promptly make the funds so
      received from the Lenders available to the Borrower at the Administrative
      Agent’s aforesaid address.

     

    Method
      of
      Requesting the Advance.  The Borrower shall give the
      Administrative Agent irrevocable notice in substantially the form of Exhibit
      B hereto (a “Borrowing/Election Notice”) not later than 11:00 a.m. (Chicago
      time) (a) on or before the Funding Date of the Advance if the Loans being
      requested are Floating Rate Loans and (b) on or before three Business Days
      before the Funding Date of the Advance if the Loans being requested are
      Eurodollar Rate Loans, specifying:  (i) the Funding Date (which shall
      be a Business Day) for the Advance; (ii) the aggregate amount of the Advance
      (which shall not be more than the Aggregate Commitment at such time); (iii)
      the
      Type of Advance selected; and (iv) in the case of each Eurodollar Rate Loan,
      the
      Interest Period applicable thereto.

     

    Amount
      of the
      Advance.  The Advance shall not be more than the amount of the
      Aggregate Commitment.

     

    Method
      of
      Selecting Types and Interest Periods for Conversion and Continuation of
      Loans.

     

    Right
      to
      Convert.  The Borrower may elect from time to time, subject to the
      provisions of Section 2.3, this Section 2.9 and Section 5.3
      to convert all or any part of a Loan of any Type into any other Type or Types
      of
      Loans; provided that any conversion of any Eurodollar Rate Loan shall be
      made on, and only on, the last day of the Interest Period applicable
      thereto.

     

    Automatic
      Conversion and Continuation.  Floating Rate Loans shall continue
      as Floating Rate Loans unless and until such Floating Rate Loans are repaid
      or
      converted into Eurodollar Rate Loans.  Eurodollar Rate Loans shall
      continue as Eurodollar Rate Loans until the end of the then applicable Interest
      Period therefor, at which time such Eurodollar Rate Loans shall be automatically
      converted into Floating Rate Loans unless the Borrower shall have repaid such
      Loans or given the Administrative Agent a Borrowing/Election Notice in
      accordance with Section 2.9(D) requesting that, at the end of such
      Interest Period, such Eurodollar Rate Loans continue as a Eurodollar Rate
      Loan.

     

    No
      Conversion
      Post-Default.  Notwithstanding anything to the contrary contained
      in Section 2.9(A) or Section 2.9(B), no Loan may be converted into
      or continued as a Eurodollar Rate Loan (except with the consent of the Required
      Lenders) when any Default has occurred and is continuing.

     

    Borrowing/Election
      Notice.  The Borrower shall give the Administrative Agent an
      irrevocable Borrowing/Election Notice of each conversion of a Floating Rate
      Loan
      into a Eurodollar Rate Loan or continuation of a Eurodollar Rate Loan not later
      than 11:00 a.m. (Chicago time) three (3) Business Days prior to the date of
      the
      requested conversion or continuation, specifying:  (i) the requested
      date (which shall be a Business Day) of such conversion or continuation; (ii)
      the amount and Type of the Loan to be converted or continued; and (iii) the
      amount of Eurodollar Rate Loan(s) into which such Loan is to be converted or
      continued, and the duration of the Interest Period applicable
      thereto.

     

    Interest
      Periods.  The Borrower shall select Interest Periods so that, to
      the best of the Borrower’s knowledge, it will not be necessary to prepay all or
      any portion of any Eurodollar Rate Loan prior to the last day of the applicable
      Interest Period in order to make mandatory prepayments as required pursuant
      to
      the terms hereof.  Each Floating Rate Loan and all Obligations other
      than Loans and the Facility Fee shall bear interest from and including the
      date
      of the making of such Loan, in the case of Floating Rate Loans, and the date
      such Obligation is due and owing in the case of such other Obligations, to
      (but
      not including) the date of repayment thereof at the Alternate Base Rate,
      changing when and as such Alternate Base Rate changes.  Changes in the
      rate of interest on that portion of the Loans maintained as Floating Rate Loans
      will take effect simultaneously with each change in the Alternate Base
      Rate.  Each Eurodollar Rate Loan shall bear interest from and
      including the first day of the Interest Period applicable thereto to (but not
      including) the last day of such Interest Period at the interest rate determined
      as applicable to such Eurodollar Rate Loan, subject to adjustment when and
      as
      the Supplemental Margin is in effect.  Changes in the rate of interest
      on that portion of the Loans maintained as Eurodollar Rate Loans will take
      effect simultaneously with the implementation of the Supplemental
      Margin.

     

    Default
      Rate.  After the occurrence and during the continuance of a
      Default, the Administrative Agent or the Required Lenders may, at their option,
      by notice to the Borrower (which notice may be revoked at the option of the
      Required Lenders in accordance with Section 9.3) declare that, (a) all
      Loans shall bear interest at 2% plus the rate otherwise applicable to such
      Loans
      or (b) in the case of any other amount outstanding hereunder, such amount shall
      accrue at 2% plus the rate applicable to such fee or other obligation as
      provided hereunder.

     

    Method
      of
      Payment.  All payments of principal, interest, fees and
      commissions hereunder shall be made, without setoff, deduction or counterclaim,
      in immediately available funds to the Administrative Agent at the Administrative
      Agent’s address specified pursuant to Article XIV, or at any other
      Lending Installation of the Administrative Agent specified in writing by the
      Administrative Agent to the Borrower, by 2:00 p.m. (Chicago time) on the date
      when due and shall be made ratably among the Lenders (unless such amount is
      not
      to be shared ratably in accordance with the terms hereof).  Each
      payment delivered to the Administrative Agent for the account of any Lender
      shall be delivered promptly by the Administrative Agent to such Lender in the
      same type of funds which the Administrative Agent received at its address
      specified pursuant to Article XIV or at any Lending Installation
      specified in a notice received by the Administrative Agent from such
      Lender.  The Borrower authorizes the Administrative Agent to charge
      the account of the Borrower maintained with JPMorgan for each payment of
      principal, interest, fees and commissions as it becomes due
      hereunder.

     

    Evidence
      of
      Debt; Noteless Agreement.

     

    Each
      Lender shall
      maintain in accordance with its usual practice an account or accounts evidencing
      the indebtedness of the Borrower to such Lender resulting from each Loan made
      by
      such Lender from time to time, including the amounts of principal and interest
      payable and paid to such Lender from time to time hereunder.

     

    The
      Administrative
      Agent shall also maintain accounts in which it will record (i) the amount of
      each Loan made hereunder, the Type thereof and the Interest Period, if any,
      with
      respect thereto, (ii) the amount of any principal or interest due and payable
      or
      to become due and payable from the Borrower to each Lender hereunder and (iii)
      the amount of any sum received by the Administrative Agent hereunder from the
      Borrower and each Lender’s share thereof.

     

    The
      entries made in
      the accounts maintained pursuant to clauses (A) and (B) above
      shall be prima facie evidence of the existence and amounts of the
      Obligations therein recorded unless the Borrower objects to information
      contained therein within thirty (30) days of the Borrower’s receipt of such
      information; provided,however, that the failure
      of any Lender or the Administrative Agent to maintain such accounts or any
      error
      therein shall not in any manner affect the obligation of the Borrower to repay
      the Obligations in accordance with the terms of this Agreement.

     

    Any
      Lender may
      request that its Loans be evidenced by a promissory note.  In such
      event, the Borrower shall prepare, execute and deliver to such Lender a
      promissory note for such Loans payable to the order of such Lender and in a
      form
      approved by the Administrative Agent in its reasonable discretion and consistent
      with the terms of this Agreement.  Thereafter, the Loans evidenced by
      such promissory note and interest thereon shall at all times (prior to any
      assignment pursuant to Section 13.3) be represented by one or more
      promissory notes in such form, payable to the order of the payee named therein,
      except to the extent that any such Lender subsequently returns any such note
      for
      cancellation and requests that such Loans once again be evidenced as described
      in clauses (A) and (B) above.

     

    Telephonic
      Notices.  The Borrower authorizes the Lenders and the
      Administrative Agent to extend, convert or continue the Advance, effect
      selections of Types of Loans and to transfer funds based on telephonic notices
      made by any person or persons the Administrative Agent or any Lender in good
      faith believes to be acting on behalf of the Borrower.  The Borrower
      agrees to deliver promptly to the Administrative Agent a written confirmation,
      signed by an Authorized Officer of the Borrower, if such confirmation is
      requested by the Administrative Agent or any Lender, of each telephonic
      notice.  If the written confirmation differs in any material respect
      from the action taken by the Administrative Agent and the Lenders, the records
      of the Administrative Agent and the Lenders with respect to such telephonic
      notice shall govern absent manifest error.  In case of disagreement
      concerning such notices, if the Administrative Agent has recorded telephonic
      Borrowing/Election Notices, such recordings will be made available to the
      Borrower upon the Borrower’s request therefor.

     

    Promise
      to Pay;
      Interest Payment Dates; Fees; Interest and Fee Basis.

     

    Promise
      to
      Pay.  The Borrower unconditionally promises to pay when due the
      principal amount of each Loan and all other Obligations incurred by it, and
      to
      pay all unpaid interest accrued thereon, in accordance with the terms of this
      Agreement and the other Loan Documents.

     

    Interest
      Payment
      Dates.  Interest accrued on each Floating Rate Loan shall be
      payable on each Payment Date, commencing with the first such date to occur
      after
      the date hereof and on any date on which such Floating Rate Loan is prepaid,
      whether by acceleration or otherwise (including at
      maturity).  Interest accrued on each Eurodollar Rate Loan shall be
      payable on the last day of its applicable Interest Period, on any date on which
      the Eurodollar Rate Loan is prepaid, whether by acceleration or otherwise,
      and
      at maturity.  Interest accrued on each Eurodollar Rate Loan having an
      Interest Period longer than three months shall also be payable on the last
      day
      of each three-month interval during such Interest Period.  Interest
      accrued on the principal balance of all other Obligations shall be payable
      in
      arrears (i) on each Payment Date, commencing on the first such day following
      the
      incurrence of such Obligation, (ii) upon repayment thereof in full or in part,
      and (iii) if not theretofore paid in full, at the time such other Obligation
      becomes due and payable (whether by acceleration or otherwise).

     

    Facility
      Fees.  The Borrower shall pay to the Administrative Agent, for the
      account of the Lenders in accordance with their Pro Rata Shares, from and after
      the Closing Date until the Termination Date, a facility fee (the “Facility Fee”)
      accruing at the per annum rate of the then Applicable Facility Fee Percentage,
      on the Aggregate Commitment (whether used or unused) (or from and after the
      Funding Date, the aggregate principal amount of all Loans).  All such
      Facility Fees payable under this clause (C) shall be payable quarterly in
      arrears on each Payment Date occurring after the Closing Date (with the first
      such payment being calculated for the period from the Closing Date and ending
      on
      September 30, 2007) and on the Termination Date.

     

    Supplemental
      Fees.  On each of March 14, 2008 and June 14, 2008, the Borrower
      shall pay to the Administrative Agent, for the account of the Lenders in
      accordance with their Pro Rata Shares, a supplemental fee of 0.075% on the
      then
      outstanding aggregate principal amount of the Loans as of the relevant date
      of
      determination.

     

    Interest
      and Fee
      Basis.  Facility Fees and interest accrued on Eurodollar Rate
      Loans and Floating Rate Loans where the basis for calculation of such Floating
      Rate Loans is the Federal Funds Effective Rate shall be calculated for actual
      days elapsed on the basis of a year of 360 days, and interest accrued on
      Floating Rate Loans where the basis for calculation is the Prime Rate shall
      be
      calculated for actual days elapsed on the basis of a year of 365, or when
      appropriate 366, days.  Interest shall be payable for the day an
      Obligation is incurred but not for the day of any payment on the amount paid
      if
      payment is received prior to 2:00 p.m. (Chicago time) at the place of
      payment.  If any payment of principal of or interest on a Loan or any
      payment of any other Obligations shall become due on a day which is not a
      Business Day, such payment shall be made on the next succeeding Business Day
      and, in the case of a principal payment, such extension of time shall be
      included in computing interest, fees and commissions in connection with such
      payment.

     

    Notification
      of
      the Advance, Interest Rates, Prepayments and Aggregate Commitment
      Reductions.  Promptly after receipt thereof, the Administrative
      Agent will notify each Lender of the contents of each Aggregate Commitment
      reduction notice, Borrowing/Election Notice and repayment notice received by
      it
      hereunder.  The Administrative Agent will notify each Lender of the
      interest rate applicable to each Eurodollar Rate Loan promptly upon
      determination of such interest rate and will give each Lender prompt notice
      of
      each change in the Alternate Base Rate.

     

    Lending
      Installations.  Each Lender may book its Loans at any Lending
      Installation selected by such Lender and may change its Lending Installation
      from time to time.  All terms of this Agreement shall apply to any
      such Lending Installation.  Subject to the provisions of
Section 4.6, each Lender may, by written or facsimile notice to the
      Administrative Agent and the Borrower, designate a Lending Installation through
      which Loans will be made by it and for whose account Loan payments are to be
      made.

     

    Non-Receipt
      of
      Funds by the Administrative Agent.  Unless the Borrower or a
      Lender, as the case may be, notifies the Administrative Agent prior to the
      date
      on which it is scheduled to make payment to the Administrative Agent of (i)
      in
      the case of a Lender, the proceeds of a Loan or (ii) in the case of the
      Borrower, a payment of principal, interest or fees to the Administrative Agent
      for the account of the Lenders, that it does not intend to make such payment,
      the Administrative Agent may assume that such payment has been
      made.  The Administrative Agent may, but shall not be obligated to,
      make the amount of such payment available to the intended recipient in reliance
      upon such assumption.  If such Lender or the Borrower, as the case may
      be, has not in fact made such payment to the Administrative Agent, the recipient
      of such payment shall, on demand by the Administrative Agent, repay to the
      Administrative Agent the amount so made available together with interest thereon
      in respect of each day during the period commencing on the date such amount
      was
      so made available by the Administrative Agent until the date the Administrative
      Agent recovers such amount at a rate per annum equal to (i) in the case of
      payment by a Lender, the Federal Funds Effective Rate for such day or (ii)
      in
      the case of payment by the Borrower, the interest rate applicable to the
      relevant Loan.

     

    Termination
      Date.  This Agreement shall be effective until the Termination
      Date.  Notwithstanding the termination of this Agreement, until all of
      the Obligations (other than contingent indemnity obligations) shall have been
      fully and indefeasibly paid and satisfied in cash (to the full extent that
      such
      Obligations are payable in cash) and all financing arrangements among the
      Borrower and the Lenders under or in connection with this Agreement and the
      other Loan Documents shall have been terminated, all of the rights and remedies
      under this Agreement and the other Loan Documents shall survive.

     

    Replacement
      of
      Certain Lenders.  In the event a Lender (an “Affected
      Lender”) shall have:  (i) failed to fund its Pro Rata Share of the
      Advance requested by the Borrower, which such Lender is obligated to fund under
      the terms of this Agreement and which failure has not been cured, (ii) requested
      compensation from the Borrower under Sections 4.1, 4.2 or
4.5 to recover Taxes, Other Taxes or other additional
      costs incurred by
      such Lender which are not being incurred generally by the other Lenders, (iii)
      delivered a notice pursuant to Section 4.3 claiming that such Lender is
      unable to extend Eurodollar Rate Loans to the Borrower for reasons not generally
      applicable to the other Lenders or (iv) has invoked Section 10.2, then,
      in any such case, the Borrower or the Administrative Agent may make written
      demand on such Affected Lender (with a copy to the Administrative Agent in
      the
      case of a demand by the Borrower and a copy to the Borrower in the case of
      a
      demand by the Administrative Agent) for the Affected Lender to assign, and
      such
      Affected Lender shall use commercially reasonable efforts to assign five (5)
      Business Days after the date of such demand, to one or more financial
      institutions that comply with the provisions of Section 13.3 which the
      Borrower or the Administrative Agent, as the case may be, shall have engaged
      for
      such purpose (“Replacement Lender”), all of such Affected Lender’s rights
      and obligations under this Agreement and the other Loan Documents (including,
      without limitation, its  Commitment and all Loans owing to it) in
      accordance with Section 13.3.  The Administrative Agent agrees,
      upon the occurrence of such events with respect to an Affected Lender and upon
      the written request of the Borrower, to use its reasonable efforts to obtain
      the
      commitments from one or more financial institutions to act as a Replacement
      Lender.  The Administrative Agent is authorized to execute any
      Assignment and Assumption as attorney-in-fact for any Affected Lender failing
      to
      execute and deliver the same within five (5) Business Days after the date of
      such demand.  Further, with respect to such assignment the Affected
      Lender shall have concurrently received, in cash, all amounts due and owing
      to
      the Affected Lender hereunder or under any other Loan Document, including,
      without limitation, the aggregate outstanding principal amount of the Loans
      owed
      to such Lender, together with accrued interest thereon through the date of
      such
      assignment, amounts payable under Sections 4.1, 4.2 and 4.5
      with respect to such Affected Lender and compensation payable under Section
      2.14(C) in the event of any replacement of any Affected Lender under clause
      (ii) or clause (iii) of this Section 2.19; provided that upon such
      Affected Lender’s replacement, such Affected Lender shall cease to be a party
      hereto but shall continue to be entitled to the benefits of Sections 4.1,
4.2, 4.4, 4.5 and 10.7, as well as to any fees
      accrued for its account hereunder and not yet paid, and shall continue to be
      obligated under Article XI with respect to losses, obligations,
      liabilities, damages, penalties, actions, judgments, costs, expenses or
      disbursements for matters which occurred prior to the date the Affected Lender
      is replaced.  Upon the replacement of any Affected Lender pursuant to
      this Section 2.19, the provisions of Section 9.2 shall continue to
      apply with respect to Loans which are then outstanding with respect to which
      the
      Affected Lender failed to fund its Pro Rata Share and which failure has not
      been
      cured.

     

    [RESERVED]

     

    YIELD
      PROTECTION; TAXES

     

    Yield
      Protection.  If, on or after the date of this Agreement, the
      adoption of any law or any governmental or quasi-governmental rule, regulation,
      policy, guideline or directive (whether or not having the force of law), or
      any
      change in the interpretation or administration thereof by any governmental
      or
      quasi-governmental authority, central bank or comparable agency charged with
      the
      interpretation or administration thereof, or compliance by any Lender or
      applicable Lending Installation with any request or directive (whether or not
      having the force of law) of any such authority, central bank or comparable
      agency:

     

    subjects
      any Lender
      or any applicable Lending Installation to any Taxes, or changes the basis of
      taxation of payments (other than with respect to Excluded Taxes) to any Lender
      in respect of its Loans, or

     

    imposes
      or
      increases or deems applicable any reserve, assessment, insurance charge, special
      deposit or similar requirement against assets of, deposits with or for the
      account of, or credit extended by, any Lender or any applicable Lending
      Installation (other than reserves and assessments taken into account in
      determining the interest rate applicable to Eurodollar Rate Loans),
      or

     

    imposes
      any other
      condition the result of which is to increase the cost to any Lender or any
      applicable Lending Installation of making, funding or maintaining its Loans
      or
      reduces any amount receivable by any Lender or any applicable Lending
      Installation in connection with its Loans, or requires any Lender or any
      applicable Lending Installation to make any payment calculated by reference
      to
      the amount of Loans held or interest received by it, by an amount deemed
      material by such Lender,

     

    and
      the result of
      any of the foregoing is to increase the cost to such Lender or applicable
      Lending Installation of making or maintaining its Loans or Commitment or to
      reduce the return received by such Lender or applicable Lending Installation
      in
      connection with such Loans or Commitment, then, within fifteen (15) days of
      demand by such Lender, the Borrower shall pay such Lender such additional amount
      or amounts as will compensate such Lender for such increased cost or reduction
      in amount received.

    Notwithstanding
      the
      foregoing provisions of this Section 4.1, if any Lender fails to notify
      the Borrower of any event or circumstance which will entitle such Lender to
      compensation pursuant to this Section 4.1 within ninety (90) days after
      such Lender obtains knowledge of such event or circumstance, then such Lender
      shall not be entitled to compensation from the Borrower for any amount arising
      prior to the date which is ninety (90) days before the date on which such Lender
      notifies the Borrower of such event or circumstance.

     

    Changes
      in
      Capital Adequacy Regulations.  If a Lender determines the amount
      of capital required or expected to be maintained by such Lender, any Lending
      Installation of such Lender or any corporation controlling such Lender is
      increased as a result of a Change, then, within fifteen (15) days of demand
      by
      such Lender, the Borrower shall pay such Lender the amount necessary to
      compensate for any shortfall in the rate of return on the portion of such
      increased capital which such Lender reasonably determines is attributable to
      this Agreement, its Loans or its Commitment hereunder (after taking into account
      such Lender’s customary policies as to capital adequacy).  “Change”
means (i) any change after the date of this Agreement in the Risk-Based Capital
      Guidelines or (ii) any adoption of or change in any other law, governmental
      or
      quasi-governmental rule, regulation, policy, guideline, interpretation, or
      directive (whether or not having the force of law) after the date of this
      Agreement which affects the amount of capital required or expected to be
      maintained by any Lender or any Lending Installation or any corporation
      controlling any Lender.  “Risk-Based Capital Guidelines” means (i) the
      risk-based capital guidelines in effect in the United States on the date of
      this
      Agreement, including transition rules, and (ii) the corresponding capital
      regulations promulgated by regulatory authorities outside the United States
      implementing the July 1988 report of the Basle Committee on Banking Regulation
      and Supervisory Practices Entitled “International Convergence of Capital
      Measurements and Capital Standards,” including transition rules, and any
      amendments to such regulations adopted prior to the date of this
      Agreement.

     

    Availability
      of
      Types of Loans.  If any Lender determines that maintenance of its
      Eurodollar Rate Loans at a suitable Lending Installation would violate any
      applicable law, rule, regulation, or directive, whether or not having the force
      of law, or if the Required Lenders determine that (i) deposits of a type and
      maturity appropriate to match fund Eurodollar Rate Loans are not available
      or
      (ii) the interest rate applicable to Eurodollar Rate Loans does not accurately
      reflect the cost of making or maintaining Eurodollar Rate Loans, then the
      Administrative Agent shall suspend the availability of Eurodollar Rate Loans
      and
      require any affected Eurodollar Rate Loans to be repaid or converted to Floating
      Rate Loans, subject to the payment of any funding indemnification amounts
      required by Section 4.4.

     

    Funding
      Indemnification.  If any payment of a Eurodollar Rate Loan occurs
      on a date which is not the last day of the applicable Interest Period, whether
      because of acceleration, prepayment or otherwise, or a Eurodollar Rate Loan
      is
      not made on the date specified by the Borrower for any reason other than default
      by the Lenders, the Borrower will indemnify each Lender for any loss or cost
      incurred by it resulting therefrom (excluding loss of margin), including,
      without limitation, any loss or cost in liquidating or employing deposits
      acquired to fund or maintain such Eurodollar Rate Loan.

     

    Taxes.

     

    All
      payments by the
      Borrower to or for the account of any Lender or the Administrative Agent
      hereunder or under any of the other Loan Documents shall be made free and clear
      of and without deduction for any and all Taxes.  If the Borrower shall
      be required by law to deduct any Taxes from or in respect of any sum payable
      hereunder to any Lender or the Administrative Agent, (a) the sum payable shall
      be increased as necessary so that after making all required deductions
      (including deductions applicable to additional sums payable under this
Section 4.5) such Lender or the Administrative Agent (as the case may be)
      receives an amount equal to the sum it would have received had no such
      deductions been made, (b) the Borrower shall make such deductions, (c) the
      Borrower shall pay the full amount deducted to the relevant authority in
      accordance with applicable law and (d) the Borrower shall furnish to the
      Administrative Agent the original copy of a receipt evidencing payment thereof
      within thirty (30) days after such payment is made.  Such Lender or
      the Administrative Agent, as the case may be, shall promptly reimburse the
      Borrower for such payments to the extent such Lender or the Administrative
      Agent
      receives actual knowledge that it has received any tax credit or other benefit
      in connection with such tax payments and that such tax credit or benefit is
      clearly attributable to this Agreement.

     

    In
      addition, the
      Borrower hereby agrees to pay any present or future stamp or documentary taxes
      and any other excise or property taxes, charges or similar levies which arise
      from any payment made hereunder or under any promissory note issued hereunder
      or
      from the execution or delivery of, or otherwise with respect to, this Agreement
      or any promissory note issued hereunder (“Other Taxes”).

     

    The
      Borrower hereby
      agrees to indemnify the Administrative Agent and each Lender for the full amount
      of Taxes or Other Taxes (including, without limitation, any Taxes or Other
      Taxes
      imposed on amounts payable under this Section 4.5) paid by the
      Administrative Agent or such Lender and any liability (including penalties,
      interest and expenses) arising therefrom or with respect
      thereto.  Payments due under this indemnification shall be made within
      thirty (30) days of the date the Administrative Agent or such Lender makes
      demand therefor pursuant to Section 4.6.

     

    Each
      Lender that is
      not incorporated or organized under the laws of the United States of America
      or
      a state thereof (each a “Non-U.S. Lender”) agrees that it will, not less than
      ten (10) Business Days after the date of this Agreement, or, if later, the
      date
      on which such Non-U.S. Lender becomes a party hereto, deliver to each of the
      Borrower and the Administrative Agent a United States Internal Revenue Form
      W-8
      or W-9, as the case may be, and deliver to the Administrative Agent two duly
      completed copies of United States Internal Revenue Forms W-8BEN and W-8ECI,
      certifying in either case that it is entitled to an exemption from United States
      backup withholding tax.  Each Non-U.S. Lender further undertakes to
      deliver to each of the Borrower and the Administrative Agent (x) renewals or
      additional copies of such form (or any successor form) on or before the date
      that such form expires or becomes obsolete, and (y) after the occurrence of
      any
      event requiring a change in the most recent forms so delivered by it, such
      additional forms or amendments thereto as may be reasonably requested by the
      Borrower or the Administrative Agent.  All forms or amendments
      described in the preceding sentence shall certify that such Lender is entitled
      to receive payments under this Agreement without deduction or withholding of
      any
      United States federal income taxes, unless an event (including without
      limitation any change in treaty, law or regulation) has occurred prior to the
      date on which any such delivery would otherwise be required which renders all
      such forms inapplicable or which would prevent such Lender from duly completing
      and delivering any such form or amendment with respect to it and such Lender
      advises the Borrower and the Administrative Agent that it is not capable of
      receiving payments without any deduction or withholding of United States federal
      income tax.

     

    For
      any period
      during which a Non-U.S. Lender has failed to provide the Borrower with an
      appropriate form pursuant to clause (iv), above (unless such failure is
      due to a change in treaty, law or regulation, or any change in the
      interpretation or administration thereof by any governmental authority,
      occurring subsequent to the date on which a form originally was required to
      be
      provided), such Non-U.S. Lender shall not be entitled to indemnification under
      this Section 4.5 with respect to Taxes imposed by the United States;
provided that, should a Non-U.S. Lender which is otherwise exempt from
      or
      subject to a reduced rate of withholding tax become subject to Taxes because
      of
      its failure to deliver a form required under clause (iv), above, the
      Borrower shall take such steps as such Non-U.S. Lender shall reasonably request
      (without cost to the Borrower) to assist such Non-U.S. Lender to recover such
      Taxes.

     

    Any
      Lender that is
      entitled to an exemption from or reduction of withholding tax with respect
      to
      payments under this Agreement or any promissory note issued hereunder pursuant
      to the law of any relevant jurisdiction or any treaty shall deliver to the
      Borrower (with a copy to the Administrative Agent), at the time or times
      prescribed by applicable law, such properly completed and executed documentation
      prescribed by applicable law as will permit such payments to be made without
      withholding or at a reduced rate.

     

    If
      the U.S. IRS or
      any other governmental authority of the United States or any other country
      or
      any political subdivision thereof asserts a claim that the Administrative Agent
      did not properly withhold tax from amounts paid to or for the account of any
      Lender (because the appropriate form was not delivered or properly completed,
      because such Lender failed to notify the Administrative Agent of a change in
      circumstances which rendered its exemption from withholding ineffective, or
      for
      any other reason other than as a result of the gross negligence or willful
      misconduct of the Administrative Agent), such Lender shall indemnify the
      Administrative Agent fully for all amounts paid, directly or indirectly, by
      the
      Administrative Agent as tax, withholding therefor, or otherwise, including
      penalties and interest, and including taxes imposed by any jurisdiction on
      amounts payable to the Administrative Agent under this subsection, together
      with
      all costs and expenses related thereto (including attorneys fees and time
      charges of attorneys for the Administrative Agent, which attorneys may be
      employees of the Administrative Agent).  The obligations of the
      Lenders under this Section 4.5(vii) shall survive the payment of the
      Obligations and termination of this Agreement.

     

    Lender
      Statements; Survival of Indemnity.  To the extent reasonably
      possible, each Lender shall designate an alternate Lending Installation with
      respect to its Eurodollar Rate Loans to reduce any liability of the Borrower
      to
      such Lender under Sections 4.1, 4.2 and 4.5 or to avoid the
      unavailability of Eurodollar Rate Loans under Section 4.3, so long as
      such designation is not, in the reasonable judgment of such Lender,
      disadvantageous to such Lender.  Each Lender shall deliver a written
      statement of such Lender to the Borrower (with a copy to the Administrative
      Agent) as to the amount due, if any, under Section 4.1, 4.2,
4.4 or 4.5.  Such written statement shall set forth in
      reasonable detail the calculations upon which such Lender determined such amount
      and shall be final, conclusive and binding on the Borrower in the absence of
      manifest error.  Determination of amounts payable under such Sections
      in connection with a Eurodollar Rate Loan shall be calculated as though each
      Lender funded its Eurodollar Rate Loan through the purchase of a deposit of
      the
      type and maturity corresponding to the deposit used as a reference in
      determining the Eurodollar Rate applicable to such Loan, whether in fact that
      is
      the case or not, and without regard to loss of margin.  Unless
      otherwise provided herein, the amount specified in the written statement of
      any
      Lender shall be payable on demand after receipt by the Borrower of such written
      statement.  The obligations of the Borrower under Sections 4.1,
4.2, 4.4 and 4.5 shall survive payment of the Obligations
      and termination of this Agreement.

     

    CONDITIONS
      PRECEDENT

     

    Funding
      Date.  The Lenders shall not be required to make the Advance
      unless the Closing Date has occurred (or will occur concurrently with the
      Funding Date) and the Borrower has furnished to the Administrative Agent each
      of
      the following, with sufficient copies for the Lenders on or before December
      31,
      2007, all in form and substance satisfactory to the Administrative Agent and
      the
      Lenders:

     

    Copies
      of the
      Certificate of Incorporation of the Borrower and each of the Subsidiary
      Guarantors (collectively, the “Loan Parties”), together with all amendments and
      a certificate of good standing, both certified by the appropriate governmental
      officer in its jurisdiction of incorporation;

     

    Copies,
      certified
      by the Secretary or Assistant Secretary of each of the Loan Parties, of its
      By-Laws and of its Board of Directors’ resolutions (and resolutions of other
      bodies, if any are deemed necessary by counsel for any Lender) authorizing
      the
      execution of the Loan Documents entered into by it;

     

    An
      incumbency
      certificate, executed by the Secretary or Assistant Secretary of each of the
      Loan Parties, which shall identify by name and title and bear the signature
      of
      the officers of the Loan Parties authorized to sign the Loan Documents and
      the
      officers of the Borrower authorized to make borrowings hereunder, upon which
      certificate the Lenders shall be entitled to rely until informed of any change
      in writing by the Borrower;

     

    A
      certificate, in
      form and substance satisfactory to the Administrative Agent, signed by the
      chief
      financial officer or the treasurer of the Borrower, stating that on the Funding
      Date, both before and after giving effect to the Designated Acquisition and
      the
      Advance, (a) all of the representations in this Agreement are true and correct
      in all material respects and no Default or Unmatured Default has occurred and
      is
      continuing or would result after giving effect to the Designated Acquisition
      or
      the Advance (and, for the avoidance of doubt, after nullifying the effect of
      Section 7.3(R) hereto) and (b) no “Default” or “Unmatured Default” has
      occurred and is continuing under and as defined in the Existing Credit Agreement
      or would result after giving effect to the Designated Acquisition or the
      Advance, including, in satisfaction of Section 7.1(A)(iv) hereof,
      confirmation that each of the conditions to a “Permitted Acquisition” under and
      as defined in the Existing Credit Agreement have been satisfied in accordance
      with its terms, including, without limitation, the proforma
      covenant compliance required by Section 7.3(F) of the Existing Credit
      Agreement;

     

    (a)
      The written
      opinion of the Loan Parties’ counsel, addressed to the Administrative Agent and
      the Lenders, in substantially the form attached hereto as Exhibit D and
      containing assumptions and qualifications acceptable to the Administrative
      Agent
      and the Lenders and (b) to the extent the same is required to be delivered
      under
      the Designated Acquisition Agreement or otherwise as a condition to or in
      connection with the Designated Acquisition, a copy of an opinion of counsel,
      in
      form and substance satisfactory to the Administrative Agent and the Lenders,
      with respect to the enforceability of the Designated Acquisition Agreement
      and
      compliance by the Borrower and its Subsidiaries with all applicable laws in
      connection with the Designated Acquisition;

     

    Evidence
      satisfactory to the Administrative Agent that (i) all conditions precedent
      to
      the consummation of the Designated Acquisition have been satisfied or, except
      with respect to the matters required to be addressed herein, waived, and all
      of
      the representations and warranties in the Designated Acquisition Agreement
      are
      accurate in all material respects as of the date on which the Designated
      Acquisition is consummated; (ii) the Designated Acquisition has been approved
      by
      all necessary corporate action of the Borrower’s and the Target’s respective
      Boards of Directors and shareholders; (iii) the Designated Acquisition Agreement
      includes a condition precedent to the consummation of the Designated Acquisition
      (which, for the avoidance of doubt, has not been amended or waived) providing
      that no “Material Adverse Change” (under and as defined in the Designated
      Acquisition Agreement) shall have occurred with respect to the Target; (iv)
      all
      required governmental approvals related to the Designated Acquisition have
      been
      obtained and all related filings made and any applicable waiting periods shall
      have expired or been terminated, including those prescribed by the
      Hart-Scott-Rodino Antitrust Improvements Act, as amended, and by any applicable
      Foreign Competition Laws; and (v) on the Funding Date the “Effective Time” under
      and as defined in the Designated Acquisition Agreement shall occur and,
      accordingly, the Designated Acquisition shall be consummated;

     

    Written
      money
      transfer instructions reasonably requested by the Administrative Agent,
      addressed to the Administrative Agent and signed by an Authorized Officer of
      the
      Borrower;

     

    Evidence
      reasonably
      satisfactory to the Administrative Agent that (a) either (i) the Target has
      paid
      (or made arrangements to pay concurrently with the making of the Advance) all
      principal, interest, fees and premiums on the Target Notes and any other amounts
      outstanding under the Target Indentures and has terminated such Target
      Indentures and all instruments, documents and agreements relating thereto,
      and/or (ii) the Target has taken, has caused to be taken or has made
      arrangements to take concurrently with the making of the Advance any and all
      actions required by the Target Indentures to defease and/or satisfy and
      discharge in full the terms of the Target Indentures, the Target Notes and
      all
      instruments, documents and agreements relating thereto, and (b) all Liens
      granted in connection with the Target Indentures and the Target Notes are being
      terminated and released as of the Funding Date;

     

    Evidence
      (in the
      form of a payoff letter and related termination documents in form and substance
      reasonably satisfactory to the Administrative Agent) that the Target and its
      Subsidiaries have paid (or made arrangements to pay concurrently with the making
      of the Advance) all principal, interest, fees and premiums, if any, on all
      loans
      and other financial accommodations outstanding under the Target Credit Agreement
      and has terminated such agreement and all instruments, documents and agreements
      relating thereto, and all Liens granted in connection with the Target Credit
      Agreement are being terminated and released as of the Funding Date;

     

    A
      supplement to
Schedule 6.8 hereto reflecting the consummation of the Designated
      Acquisition;

     

    Signature
      pages or
      counterparts to the Subsidiary Guaranty; and

     

    Fully
      executed and
      effective amendments to, or consents under, the Existing Credit Facility and
      the
      Singapore Credit Facility.

     

    The
      Borrowing/Election Notice with respect to the Advance shall constitute a
      representation and warranty by the Borrower that, on and as of the Funding
      Date,
      both before and after taking into account the consummation of the Designated
      Acquisition and the Advance, (a) there exists no Default or Unmatured Default
      and (b) the representations and warranties contained in Article VI are
      true and correct in all material respects.

     

    Closing
      Date.  This Agreement shall not be effective unless the Borrower
      has furnished to the Administrative Agent each of the following, with sufficient
      copies for the Lenders, all in form and substance satisfactory to the
      Administrative Agent and the Lenders:

     

    Signature
      pages or
      counterparts to this Agreement (and the Agents and each Lender as of the Closing
      Date shall have delivered their respective signature pages to this
      Agreement);

     

    To
      the extent not
      previously delivered, signature pages or counterparts to the side letter among
      the Agents, the Arrangers and the Borrower dated as of the date hereof;
      and

     

    A
      certificate, in
      form and substance satisfactory to the Administrative Agent, signed by the
      chief
      financial officer or the treasurer of the Borrower, stating that on the Closing
      Date all the representations in this Agreement made by the Borrower are true
      and
      correct in all material respects and no Default or Unmatured Default has
      occurred and is continuing.

     

    Each
      Loan.  The Lenders shall not be required to convert or continue
      any Loan unless on the date of such conversion or continuation, both before
      and
      after taking into account the proposed conversion or continuation:

     

    (i)           There
      exists no Default or Unmatured Default; and

     

    (ii)           The
      representations and warranties contained in Article VI are true and
      correct in all material respects as of such date.

     

    Each
      Borrowing/Election Notice with respect to each such Loan a shall constitute
      a
      representation and warranty by the Borrower that the conditions contained in
      Sections 5.3(i) and (ii) have been satisfied.

     

    REPRESENTATIONS
      AND WARRANTIES

     

    In
      order to induce
      the Administrative Agent and the Lenders to enter into this Agreement and to
      make the Loans and the other financial accommodations hereunder, the Borrower
      hereby represents and warrants as follows to each Lender and the Administrative
      Agent as of the Closing Date, the Funding Date (giving effect to the
      consummation of the Designated Acquisition), and thereafter on each date as
      required hereunder (other than with respect to Section 6.18, which shall
      only be made by the Borrower as of the Funding Date):

     

    Organization;
      Corporate Powers.  Each of the Borrower and its Material
      Subsidiaries (i) is a corporation, limited liability company, partnership or
      other commercial entity duly organized, validly existing and in good standing
      under the laws of the jurisdiction of its organization, (ii) is duly qualified
      to do business as a foreign entity and is in good standing under the laws of
      each jurisdiction in which failure to be so qualified and in good standing
      could
      reasonably be expected to have a Material Adverse Effect, and (iii) has all
      requisite power and authority to own, operate and encumber its property and
      to
      conduct its business as presently conducted and as proposed to be
      conducted.

     

    Authority.

     

    Each
      of the
      Borrower and its Subsidiaries has the requisite power and authority to execute,
      deliver and perform each of the Transaction Documents which are to be executed
      by it in connection with the Transactions or which have been executed by it
      as
      required by this Agreement and the other Loan Documents and (ii) to file the
      Transaction Documents which must be filed by it in connection with the
      Transactions or which have been filed by it as required by this Agreement,
      the
      other Loan Documents or otherwise with any Governmental Authority.

     

    The
      execution,
      delivery, performance and filing, as the case may be, of each of the Relevant
      Transaction Documents which must be executed or filed by the Borrower or any
      of
      its Subsidiaries in connection with the Transactions or which have been executed
      or filed as required by this Agreement, the other Relevant Transaction Documents
      or otherwise and to which the Borrower or any of its Subsidiaries is a party,
      and the consummation of the transactions contemplated thereby, have been duly
      approved by the respective boards of directors and, if necessary, the
      shareholders of the Borrower and its Subsidiaries, and such approvals have
      not
      been rescinded.  No other action or proceedings on the part of the
      Borrower or its Subsidiaries are necessary to consummate such
      transactions.

     

    Each
      of the
      Transaction Documents to which the Borrower or any of its Subsidiaries is a
      party has been duly executed, delivered or filed, as the case may be, by such
      party and constitutes its legal, valid and binding obligation, enforceable
      against it in accordance with its terms (except as enforceability may be limited
      by bankruptcy, insolvency, or similar laws affecting the enforcement of
      creditors’ rights generally and by general equitable principles, including
      concepts of reasonableness, materiality, good faith and fair dealing and the
      possible unavailability of specific performance, injunctive relief or other
      equitable remedies (whether enforcement is sought by proceedings in equity
      or at
      law)), is in full force and effect (other than as a result of expiration in
      accordance with its terms) and no material term or condition has been amended,
      modified or waived from the terms and conditions contained in the Transaction
      Documents delivered to the Administrative Agent pursuant to Sections 5.1
      and 5.2 without the prior written consent of the Required Lenders (or all
      of the Lenders if required by Section 9.3), and the Borrower and its
      Subsidiaries have, and, to the best of the Borrower’s and its Subsidiaries’
knowledge, all other parties thereto have, performed and complied with all
      the
      material terms, provisions, agreements and conditions set forth therein and
      required to be performed or complied with by such parties on or before the
      Closing Date or Funding Date, as applicable, and no unmatured default, default
      or breach of any covenant by any such party exists thereunder.

     

    No
      Conflict;
      Governmental Consents for the Borrower.  The execution, delivery
      and performance of each of the Loan Documents and other Transaction Documents
      to
      which the Borrower or any of its Subsidiaries is a party do not and will not
      (i)
      conflict with the certificate or articles of incorporation or by-laws (or
      equivalent constituent documents) of the Borrower or any such Subsidiary, (ii)
      constitute a tortious interference with any Financing Facility or conflict
      with,
      result in a breach of or constitute (with or without notice or lapse of time
      or
      both) a default under any Financing Facility, or require termination of any
      Financing Facility, (iii) constitute a tortious interference with any
      Contractual Obligation (other than the Financing Facilities) of any Person
      or
      conflict with, result in a breach of or constitute (with or without notice
      or
      lapse of time or both) a default under any Requirement of Law (including,
      without limitation, any Environmental Property Transfer Act) or such Contractual
      Obligation of the Borrower or any such Subsidiary, or require termination of
      any
      such Contractual Obligation, except such interference, breach, default or
      termination which individually or in the aggregate could not reasonably be
      expected to have a Material Adverse Effect, (iv) result in or require the
      creation or imposition of any Lien whatsoever upon any of the property or assets
      of the Borrower or any such Subsidiary, other than Liens permitted or created
      by
      the Loan Documents, or (v) require any approval of the Borrower’s or any such
      Subsidiary’s Board of Directors (or equivalent governing body) or shareholders
      except such as have been obtained.  Except as set forth on Schedule
      6.3 to this Agreement, the execution, delivery and performance of each of
      the Transaction Documents to which the Borrower or any of its Subsidiaries
      is a
      party do not and will not require any registration with, consent or approval
      of,
      or notice to, or other action to, with or by any Governmental Authority,
      including under any Environmental Property Transfer Act, except filings,
      consents or notices which have been made, obtained or given, or which, if not
      made, obtained or given, individually or in the aggregate could not reasonably
      be expected to have a Material Adverse Effect.

     

    Financial
      Statements.  The September 30, 2006, December 31, 2006, March 30,
      2006 and June 30, 2007 consolidated financial statements of the Borrower and
      its
      Subsidiaries heretofore delivered to the Lenders were prepared in accordance
      with generally accepted accounting principles in effect on the date such
      statements were prepared and fairly present the consolidated financial condition
      and operations of the Borrower and its Subsidiaries at such date and the
      consolidated results of their operations for the period then ended.

     

    No
      Material
      Adverse Change.  Since September 30, 2006 (determined by reference
      to the financial statements prepared with respect to the Borrower and its
      Subsidiaries), there has occurred no change in the business, properties,
      condition (financial or otherwise), performance, results of operations or
      prospects of the Borrower, or the Borrower and its Subsidiaries taken as a
      whole
      or any other event which has had or would reasonably be expected to have a
      Material Adverse Effect.

     

    Taxes.

     

    Tax
      Examinations.  All deficiencies which have been asserted against
      the Borrower or any of the Borrower’s Subsidiaries as a result of any federal,
      state, local or foreign tax examination for each taxable year in respect of
      which an examination has been conducted have been fully paid or finally settled
      or are being contested in good faith, and no issue has been raised by any taxing
      authority in any such examination which, by application of similar principles,
      reasonably can be expected to result in assertion by such taxing authority
      of a
      material deficiency for any other year not so examined which has not been
      reserved for in the Borrower’s consolidated financial statements to the extent,
      if any, required by Agreement Accounting Principles.  Except as
      permitted pursuant to Section 7.2(D), neither the Borrower nor any of the
      Borrower’s Subsidiaries anticipates any material tax liability with respect to
      the years which have not been closed pursuant to applicable law.

     

    Payment
      of
      Taxes.  All tax returns and reports of the Borrower and its
      Subsidiaries required to be filed have been timely filed, and all taxes,
      assessments, fees and other governmental charges thereupon and upon their
      respective property, assets, income and franchises which are shown in such
      returns or reports to be due and payable have been paid except those items
      which
      are being contested in good faith and have been reserved for in accordance
      with
      Agreement Accounting Principles.  The Borrower has no knowledge of any
      proposed tax assessment against the Borrower or any of its Subsidiaries that
      will have or could reasonably be expected to have a Material Adverse Effect,
      except for any such liability in respect of other members of the consolidated
      group of which the Borrower previously was a member as a Subsidiary of Ralston
      Purina Company, in respect of which and solely to the extent that (i) the
      Borrower is entitled to be indemnified by Ralston Purina Company or its
      successors pursuant to that certain Tax Sharing Agreement, dated as of April
      1,
      2000, between Ralston Purina Company and the Borrower (as the same has been
      or
      may hereafter be amended or otherwise modified) and (ii) the Borrower’s right to
      indemnification for such liability is not being contested by Ralston Purina
      Company (or, if previously contested, any such contest has not been resolved
      in
      favor of Ralston Purina Company).

     

    Litigation;
      Loss
      Contingencies and Violations.  Except as set forth in Schedule
      6.7 (the “Disclosed Litigation”), as of the Closing Date, there is no
      action, suit, proceeding, arbitration or, to the knowledge of any member of
      the
      Borrower’s Senior Management Team, investigation before or by any Governmental
      Authority or private arbitrator pending or, to the knowledge of any member
      of
      the Borrower’s Senior Management Team, threatened against the Borrower, any of
      its Subsidiaries or any property of any of them.  Neither (a) any of
      the Disclosed Litigation nor (b) from and after the Closing Date, any other
      action, suit, proceeding, arbitration or, to the knowledge of any member of
      the
      Borrower’s Senior Management Team, investigation before or by any Governmental
      Authority or private arbitrator pending or, to the knowledge of any member
      of
      the Borrower’s Senior Management Team, threatened against the Borrower, any of
      its Subsidiaries or any property of any of them (i) challenges the validity
      or
      the enforceability of the Transactions or any material provision of the
      Transaction Documents or (ii) has had or could reasonably be expected to have
      a
      Material Adverse Effect.  There is no material loss contingency within
      the meaning of Agreement Accounting Principles which has not been reflected
      in
      the consolidated financial statements of the Borrower prepared and delivered
      pursuant to Section 7.1(A) for the fiscal period during which such
      material loss contingency was incurred.  Neither the Borrower nor any
      of its Subsidiaries is (A) in violation of any applicable Requirements of Law
      which violation will have or could reasonably be expected to have a Material
      Adverse Effect, or (B) subject to or in default with respect to any final
      judgment, writ, injunction, restraining order or order of any nature, decree,
      rule or regulation of any court or Governmental Authority which will have or
      could reasonably be expected to have a Material Adverse Effect.

     

    Subsidiaries.  Schedule
      6.8 to this Agreement (i) contains, as of the Closing Date (and, after
      receipt of the supplement to such Schedule 6.8 on the Funding Date, as of
      the Funding Date), a description of the corporate structure of the Borrower
      its
      Subsidiaries and any other Person in which the Borrower or any of its
      Subsidiaries holds an Equity Interest in excess of 5%; and (ii) accurately
      sets
      forth, as of the Closing Date,  (A) the correct legal name, the
      jurisdiction of incorporation or organization and the jurisdictions in which
      each of the Borrower and the direct and indirect Subsidiaries of the Borrower
      are qualified to transact business as a foreign corporation, (B) the authorized,
      issued and outstanding shares of each class of Capital Stock of the Borrower
      and
      each of its Subsidiaries and the owners of such shares (on a fully-diluted
      basis), and (C) a summary of the direct and indirect partnership, joint venture,
      or other Equity Interests, if any, of the Borrower and each Subsidiary of the
      Borrower in any Person that is not a corporation.  On the Funding Date
      and, if requested by the Administrative Agent, after the formation or
      acquisition of any New Subsidiary permitted under Section 7.3(F), the
      Borrower shall provide a supplement to Schedule 6.8 to this Agreement
      reflecting the Designated Acquisition or the addition of such New Subsidiary,
      as
      the case may be.  Except as disclosed on Schedule 6.8 (as so
      supplemented) none of the issued and outstanding Capital Stock of the Borrower
      or any of its Subsidiaries is subject to any vesting, redemption, or repurchase
      agreement, and there are no warrants or options outstanding with respect to
      such
      Capital Stock.  The outstanding Capital Stock of the Borrower and each
      of its Subsidiaries is duly authorized, validly issued, fully paid and
      nonassessable and the stock of the Borrower’s Subsidiaries is not Margin
      Stock.

     

    ERISA.  No
      Benefit Plan has incurred any material accumulated funding deficiency (as
      defined in Sections 302(a)(2) of ERISA and 412(a) of the Code) whether or not
      waived.  Neither the Borrower nor any member of the Controlled Group
      has incurred any material liability to the PBGC which remains outstanding other
      than the payment of premiums.  As of the last day of the most recent
      prior plan year, the market value of assets under each Benefit Plan, other
      than
      any Multiemployer Plan, was not by a material amount less than the present
      value
      of benefit liabilities thereunder (determined in accordance with the actuarial
      valuation assumptions described therein).  Neither the Borrower nor
      any member of the Controlled Group has (i) failed to make a required
      contribution or payment to a Multiemployer Plan of a material amount or (ii)
      incurred a material complete or partial withdrawal under Section 4203 or Section
      4205 of ERISA from a Multiemployer Plan.  Neither the Borrower nor any
      member of the Controlled Group has failed to make an installment or any other
      payment of a material amount required under Section 412 of the Code on or before
      the due date for such installment or other payment.  Each Plan,
      Foreign Employee Benefit Plan and Non-ERISA Commitment complies in all material
      respects in form, and has been administered in all material respects in
      accordance with its terms and, in accordance with all applicable laws and
      regulations, including but not limited to ERISA and the Code.  There
      have been no and there is no prohibited transaction described in Sections 406
      of
      ERISA or 4975 of the Code with respect to any Plan for which a statutory or
      administrative exemption does not exist which could reasonably be expected
      to
      subject the Borrower or any of is Subsidiaries to material
      liability.  Neither the Borrower nor any member of the Controlled
      Group has taken or failed to take any action which would constitute or result
      in
      a Termination Event, which action or inaction could reasonably be expected
      to
      subject the Borrower or any of its Subsidiaries to material
      liability.  Neither the Borrower nor any member of the Controlled
      Group is subject to any material liability under, or has any potential material
      liability under, Section 4063, 4064, 4069, 4204 or 4212(c) of
      ERISA.  The present value of the aggregate liabilities to provide all
      of the accrued benefits under any Foreign Pension Plan do not exceed the current
      fair market value of the assets held in trust or other funding vehicle for
      such
      plan by a material amount.  With respect to any Foreign Employee
      Benefit Plan other than a Foreign Pension Plan, reasonable reserves have been
      established in accordance with prudent business practice or where required
      by
      ordinary accounting practices in the jurisdiction in which such plan is
      maintained.  For purposes of this Section 6.9, “material”
means any amount, noncompliance or other basis for liability which
      could
      reasonably be expected to subject the Borrower or any of its Subsidiaries to
      liability, individually or in the aggregate with each other basis for liability
      under this Section 6.9, in excess of $30,000,000.

     

    Accuracy
      of
      Information.  The information, exhibits and reports furnished by
      or on behalf of the Borrower and any of its Subsidiaries to the Administrative
      Agent or to any Lender in connection with the negotiation of, or compliance
      with, the Loan Documents, the representations and warranties of the Borrower
      and
      its Subsidiaries contained in the Loan Documents, and all certificates and
      documents delivered to the Administrative Agent and the Lenders pursuant to
      the
      terms thereof, including, without limitation, the Designated Acquisition
      Agreement, taken as a whole, do not contain as of the date furnished any untrue
      statement of a material fact or omit to state a material fact necessary in
      order
      to make the statements contained herein or therein, in light of the
      circumstances under which they were made, not misleading.

     

    Securities
      Activities.  Neither the Borrower nor any of its Subsidiaries is
      engaged in the business of extending credit for the purpose of purchasing or
      carrying Margin Stock.

     

    Material
      Agreements.  Neither the Borrower nor any Subsidiary is a party to
      any Contractual Obligation or subject to any charter or other corporate or
      similar restriction which individually or in the aggregate will have or could
      reasonably be expected to have a Material Adverse Effect.  Neither the
      Borrower nor any of its Subsidiaries has received notice or has knowledge that
      (i) it is in default in the performance, observance or fulfillment of any of
      the
      obligations, covenants or conditions contained in any Contractual Obligation
      applicable to it, or (ii) any condition exists which, with the giving of notice
      or the lapse of time or both, would constitute a default with respect to any
      such Contractual Obligation, in each case, except where such default or
      defaults, if any, individually or in the aggregate will not have or could not
      reasonably be expected to have a Material Adverse Effect.

     

    Compliance
      with
      Laws.  The Borrower and its Subsidiaries are in compliance with
      all Requirements of Law applicable to them and their respective businesses,
      in
      each case where the failure to so comply individually or in the aggregate could
      reasonably be expected to have a Material Adverse Effect.

     

    Assets
      and
      Properties.  The Borrower and each of its Subsidiaries has legal
      title to all of its material assets and properties (tangible and intangible,
      real or personal) owned by it or a valid leasehold interest in all of its
      material leased assets (except insofar as marketability may be limited by any
      laws or regulations of any Governmental Authority affecting such assets), and
      all such assets and property are free and clear of all Liens, except Liens
      permitted under Section 7.3(C).  Substantially all of the
      assets and properties owned by, leased to or used by the Borrower and/or each
      such Subsidiary of the Borrower are in adequate operating condition and repair,
      ordinary wear and tear excepted.  Neither this Agreement nor any
      Transaction Document, nor any transaction contemplated under any such agreement,
      will affect any right, title or interest of the Borrower or such Subsidiary
      in
      and to any of such assets in a manner that has had or could reasonably be
      expected to have a Material Adverse Effect.

     

    Statutory
      Indebtedness Restrictions.  Neither the Borrower nor any of its
      Subsidiaries is subject to regulation under the Federal Power Act, the
      Interstate Commerce Act, or the Investment Company Act of 1940, or any other
      federal or state statute or regulation which limits its ability to incur
      indebtedness or its ability to consummate the transactions contemplated
      hereby.

     

    Insurance.  The  insurance
      policies and programs in effect with respect to the respective properties,
      assets, liabilities and business of the Borrower and its Subsidiaries reflect
      coverage that is reasonably consistent with prudent industry
      practice.

     

    Labor
      Matters.  No attempt to organize the employees of the Borrower or
      any of its Subsidiaries, and no labor disputes, strikes or walkouts affecting
      the operations of the Borrower or any of its Subsidiaries, is pending, or,
      to
      the Borrower’s knowledge, threatened, planned or contemplated, which has or
      could reasonably be expected to have a Material Adverse Effect.

     

    Designated
      Acquisition.  (i) All conditions precedent to the consummation of
      the Designated Acquisition have been satisfied or, except with respect to the
      matters required to be addressed herein, waived, and all of the representations
      and warranties in the Designated Acquisition Agreement are accurate in all
      material respects as of the date on which the Designated Acquisition is
      consummated; (ii) the Designated Acquisition has been approved by all necessary
      corporate action of the Borrower’s and the Target’s respective Boards of
      Directors and shareholders; (iii) the Designated Acquisition Agreement includes
      a condition precedent to the consummation of the Designated Acquisition (which,
      for the avoidance of doubt, has not been amended or waived) providing that
      no
“Material Adverse Change” (under and as defined in the Designated Acquisition
      Agreement) shall have occurred with respect to the Target; (iv) all required
      governmental approvals related to the Designated Acquisition have been obtained
      and all related filings made and any applicable waiting periods shall have
      expired or been terminated, including those prescribed by the Hart-Scott-Rodino
      Antitrust Improvements Act, as amended, and by any Foreign Competition Laws;
      and
      (v) on the Funding Date the “Effective Time” under and as defined in the
      Designated Acquisition Agreement shall occur and, accordingly, the Designated
      Acquisition shall be consummated.

     

    Environmental
      Matters.  (iv)
      Except as
      disclosed on Schedule 6.19 to this Agreement

     

    the
      operations of
      the Borrower and its Subsidiaries comply in all material respects with
      Environmental, Health or Safety Requirements of Law;

     

    the
      Borrower and
      its Subsidiaries have all material permits, licenses or other authorizations
      required under Environmental, Health or Safety Requirements of Law and are
      in
      material compliance with such permits;

     

    neither
      the
      Borrower, any of its Subsidiaries nor any of their respective present property
      or operations, or, to the Borrower’s or any of its Subsidiaries’ knowledge, any
      of their respective past property or operations, are subject to or the subject
      of, any investigation known to the Borrower or any of its Subsidiaries, any
      judicial or administrative proceeding, order, judgment, decree, settlement
      or
      other agreement respecting:  (A) any material violation of
      Environmental, Health or Safety Requirements of Law; (B) any material remedial
      action; or (C) any material claims or liabilities arising from the Release
      or
      threatened Release of a Contaminant into the environment;

     

    there
      is not now,
      nor to the Borrower’s or any of its Subsidiaries’ knowledge has there ever been,
      on or in the property of the Borrower or any of its Subsidiaries any landfill,
      waste pile, underground storage tanks, aboveground storage tanks, surface
      impoundment or hazardous waste storage facility of any kind, any polychlorinated
      biphenyls (PCBs) used in hydraulic oils, electric transformers or other
      equipment, or any asbestos containing material that would result in material
      remediation costs or material penalties to the Borrower or any of its
      Subsidiaries; and

     

    neither
      the
      Borrower nor any of its Subsidiaries has any material Contingent Obligation
      in
      connection with any Release or threatened Release of a Contaminant into the
      environment.

     

    For
      purposes of
      this Section 6.19“material” means any noncompliance or other basis for
      liability which could reasonably be likely to subject the Borrower or any of
      its
      Subsidiaries to liability, individually or in the aggregate with each other
      basis for liability under this Section 6.19, in excess of
      $30,000,000.

     

    Solvency.  After
      giving effect to (i) the Loans to be made on the Funding Date, (ii) the other
      transactions contemplated by this Agreement and the other Transaction Documents,
      including consummation of the Designated Acquisition, and (iii) the payment
      and
      accrual of all transaction costs with respect to the foregoing, the Borrower
      is,
      and the Borrower and its Subsidiaries taken as a whole are,
      Solvent.

     

    Benefits.  Each
      of the Borrower and its Subsidiaries will benefit from the financing arrangement
      established by this Agreement.  The Administrative Agent and the
      Lenders have stated and the Borrower acknowledges that, but for the agreement
      by
      each of the Subsidiary Guarantors to execute and deliver the Subsidiary
      Guaranty, the Administrative Agent and the Lenders would not have made available
      the credit facilities established hereby on the terms set forth
      herein.

     

    COVENANTS

     

    Subject
      to
Section 7.3(R) below, the Borrower covenants and agrees that so long as
      any Commitments are outstanding and thereafter until all of the Obligations
      (other than contingent indemnity obligations) shall have been fully and
      indefeasibly paid and satisfied in cash and all financing arrangements among
      the
      Borrower and the Lenders shall have been terminated, unless the Required Lenders
      shall otherwise give prior written consent:

     

    Reporting.  The
      Borrower shall:

     

    Financial
      Reporting.  Furnish to the Administrative Agent (with sufficient
      copies for each of the Lenders, which the Administrative Agent shall promptly
      deliver to the Lenders):

     

    Quarterly
      Reports.  As soon as practicable, and in any event within
      forty-five (45) days after the end of each of the Borrower’s first three fiscal
      quarters, the consolidated balance sheet of the Borrower and its Subsidiaries
      as
      at the end of such period and the related consolidated statements of income
      and
      cash flows of the Borrower and its Subsidiaries for such fiscal quarter and
      for
      the period from the beginning of the then current fiscal year to the end of
      such
      fiscal quarter, certified by the chief financial officer or treasurer of the
      Borrower on behalf of the Borrower as fairly presenting the consolidated
      financial position of the Borrower and its Subsidiaries as at the dates
      indicated and the results of their operations and cash flows for the periods
      indicated in accordance with Agreement Accounting Principles, subject to normal
      year-end audit adjustments and the absence of footnotes.

     

    Annual
      Reports.  As soon as practicable, and in any event within ninety
      (90) days after the end of each fiscal year, (a) the consolidated and
      consolidating balance sheet of the Borrower and its Subsidiaries as at the
      end
      of such fiscal year and the related consolidated and consolidating statements
      of
      income, stockholders’ equity and cash flows of the Borrower and its Subsidiaries
      for such fiscal year, and in comparative form the corresponding figures for
      the
      previous fiscal year along with consolidating schedules in form and substance
      sufficient to calculate the financial covenants set forth in Section 7.4,
      and (b) an audit report on the consolidated financial statements (but not the
      consolidating financial statements or schedules) listed in clause (a)
      hereof of independent certified public accountants of recognized national
      standing, which audit report shall be unqualified and shall state that such
      financial statements fairly present the consolidated financial position of
      the
      Borrower and its Subsidiaries as at the dates indicated and the results of
      their
      operations and cash flows for the periods indicated in conformity with Agreement
      Accounting Principles and that the examination by such accountants in connection
      with such consolidated financial statements has been made in accordance with
      generally accepted auditing standards.

     

    Officer’s
      Compliance Certificate.  Together with each delivery of any
      financial statements (a) pursuant to clauses (i) and (ii) of this
Section 7.1(A), an Officer’s Certificate from the chief financial officer
      or treasurer of the Borrower, substantially in the form of Exhibit E
      attached hereto and made a part hereof, stating that (x) the representations
      and
      warranties of the Borrower contained in Article VI hereof shall have been
      true and correct in all material respects as of the date of such Officer’s
      Certificate and (y) as of the date of such Officer’s Certificate no Default or
      Unmatured Default exists, or if any Default or Unmatured Default exists, stating
      the nature and status thereof and (b) pursuant to clauses (i) and
(ii) of this Section 7.1(A), a compliance certificate,
      substantially in the form of Exhibit F attached hereto and made a part
      hereof, signed by the Borrower’s chief financial officer or treasurer, setting
      forth calculations for the period which demonstrate compliance, when applicable,
      with the provisions of Section 7.2(K), Sections 7.3(A) through
(Q) and Section 7.4.

     

    Compliance
      of
      Designated Acquisition with the Existing Credit Agreement.  On or
      prior to the date on which the Designated Acquisition shall be consummated,
      evidence satisfactory to the Administrative Agent that each of the conditions
      to
      a “Permitted Acquisition” under and as defined in the Existing Credit Agreement
      shall have been satisfied in accordance with its terms, including, without
      limitation, a confirmation of proforma covenant compliance as
      required by Section 7.3(F) of the Existing Credit Agreement.

     

    Notice
      of
      Default and Adverse Developments.  Promptly upon any of the chief
      executive officer, chief operating officer, chief financial officer, treasurer
      or controller of the Borrower obtaining actual knowledge (i) of any condition
      or
      event which constitutes a Default or Unmatured Default, or becoming aware that
      any Lender or Administrative Agent has given any written notice with respect
      to
      a claimed Default or Unmatured Default under this Agreement, (ii) that any
      Person having the authority to give such a notice has given any written notice
      to the Borrower or any Subsidiary of the Borrower or taken any other action
      with
      respect to a claimed default or event or condition of the type referred to
      in
Section 8.1(E), or (iii) that any other development, financial or
      otherwise, which could reasonably be expected to have a Material Adverse Effect
      has occurred specifying (a) the nature and period of existence of any such
      claimed default, Default, Unmatured Default, condition or event, (b) the notice
      given or action taken by such Person in connection therewith, and (c) what
      action the Borrower has taken, is taking and proposes to take with respect
      thereto.

     

    ERISA
      Notices.  Deliver or cause to be delivered to the Administrative
      Agent and the Lenders, at the Borrower’s expense, the following information and
      notices as soon as reasonably possible, and in any event:

     

    within
      ten (10)
      Business Days after any member of the Controlled Group obtains knowledge that
      a
      Termination Event has occurred which could reasonably be expected to subject
      the
      Borrower to liability individually or in the aggregate in excess of $25,000,000,
      a written statement of the chief financial officer or treasurer of the Borrower
      describing such Termination Event and the action, if any, which the member
      of
      the Controlled Group has taken, is taking or proposes to take with respect
      thereto, and when known, any action taken or threatened by the IRS, DOL or
      PBGC
      with respect thereto;

     

    within
      ten (10)
      Business Days after the filing of any funding waiver request with the IRS,
      a
      copy of such funding waiver request and thereafter all communications received
      by the Borrower or a member of the Controlled Group with respect to such request
      within ten (10) Business Days after such communication is received;
      and

     

    within
      ten (10)
      Business Days after the Borrower or any member of the Controlled Group knows
      or
      has reason to know that (a) a Multiemployer Plan has been terminated, (b) the
      administrator or plan sponsor of a Multiemployer Plan intends to terminate
      a
      Multiemployer Plan, or (c) the PBGC has instituted or will institute proceedings
      under Section 4042 of ERISA to terminate a Multiemployer Plan, a notice
      describing such matter.

     

    For
      purposes of
      this Section 7.1(C), the Borrower and any member of the Controlled Group
      shall be deemed to know all facts known by the administrator of any Plan of
      which the Borrower or any member of the Controlled Group is the plan
      sponsor.

    Other
      Indebtedness.  Deliver to the Administrative Agent (i) a copy of
      each regular report, notice or communication regarding potential or actual
      defaults (including any accompanying officer’s certificate) delivered by or on
      behalf of the Borrower to the holders of funded Material Indebtedness,
      including, without limitation, holders of Indebtedness under any Financing
      Facility, pursuant to the terms of the agreements governing such Indebtedness,
      such delivery to be made at the same time and by the same means as such notice
      or other communication is delivered to such holders, and (ii) a copy of each
      notice received by the Borrower from the holders of funded Material Indebtedness
      who are authorized and/or have standing to deliver such notice pursuant to
      the
      terms of such Indebtedness, such delivery to be made promptly after such notice
      is received by the Borrower.

     

    Other
      Reports.  Deliver or cause to be delivered to the Administrative
      Agent and the Lenders copies of all financial statements, reports and notices,
      if any, sent by the Borrower to its securities holders or filed with the
      Commission by the Borrower, other than Reports on Form 8-K which contain only
      information furnished pursuant to Item 12 thereof.

     

    Environmental
      Notices.  As soon as possible and in any event within ten (10)
      days after receipt by the Borrower, deliver or cause to be delivered to the
      Administrative Agent a copy of (i) any notice or claim to the effect that the
      Borrower or any of its Subsidiaries is or may be liable to any Person as a
      result of the Release by the Borrower, any of its Subsidiaries, or any other
      Person of any Contaminant into the environment, and (ii) any notice alleging
      any
      violation of any Environmental, Health or Safety Requirements of Law by the
      Borrower or any of its Subsidiaries if, in either case, such notice or claim
      relates to an event which could reasonably be expected to subject the Borrower
      and each of its Subsidiaries to liability individually or in the
      aggregate  in excess of $25,000,000.

     

    Amendments
      to
      and Refinancings of Financing Facilities.  Promptly after the
      execution thereof, deliver or cause to be delivered to the Administrative Agent
      copies of all material amendments to, or refinancings or replacements of, any
      of
      the documents evidencing all or any portion of the Indebtedness extended to
      the
      Borrower or any of its Subsidiaries under any of the Financing Facilities and
      any other Material Indebtedness.

     

    Other
      Information.  Promptly upon receiving a request therefor from the
      Administrative Agent, prepare and deliver to the Administrative Agent and the
      Lenders such other information with respect to the Borrower, any of its
      Subsidiaries, or their respective businesses and assets, including, without
      limitation, schedules identifying and describing any Asset Sale (and the use
      of
      the net cash proceeds thereof), as from time to time may be reasonably requested
      by the Administrative Agent.

     

    Affirmative
      Covenants.

     

    Corporate
      Existence, Etc.  Except as permitted pursuant to Section
      7.3(H), the Borrower shall, and shall cause each of its Subsidiaries to, at
      all times maintain its existence and preserve and keep, or cause to be preserved
      and kept, in full force and effect its rights and franchises material to its
      businesses.

     

    Corporate
      Powers; Conduct of Business.  The Borrower shall, and shall cause
      each of its Material Subsidiaries to, qualify and remain qualified to do
      business in each jurisdiction in which the nature of its business requires
      it to
      be so qualified and where the failure to be so qualified will have or would
      reasonably be expected to have a Material Adverse Effect.  The
      Borrower will, and will cause each Material Subsidiary to, carry on and conduct
      its business in substantially the same manner and in substantially the same
      fields of enterprise as it is presently conducted unless the failure of the
      Borrower or its Material Subsidiaries to carry on and conduct its business
      as so
      described would not reasonably be expected to have a Material Adverse
      Effect.

     

    Compliance
      with
      Laws, Etc.  The Borrower shall, and shall cause its Subsidiaries
      to, (a) comply with all Requirements of Law and all restrictive covenants
      affecting such Person or the business, properties, assets or operations of
      such
      Person, and (b) obtain as needed all permits necessary for its operations and
      maintain such permits in good standing unless, in either case, failure to comply
      or obtain such permits would not reasonably be expected to have a Material
      Adverse Effect.

     

    Payment
      of Taxes
      and Claims; Tax Consolidation.  The Borrower shall pay, and cause
      each of its Subsidiaries to pay, (i) all taxes, assessments and other
      governmental charges imposed upon it or on any of its properties or assets
      or in
      respect of any of its franchises, business, income or property before any
      penalty or interest accrues thereon, and (ii) all claims (including, without
      limitation, claims for labor, services, materials and supplies) for sums which
      have become due and payable and which by law have or may become a Lien (other
      than a Lien permitted by Section 7.3(C)) upon any of the Borrower’s or
      such Subsidiary’s property or assets, prior to the time when any penalty or fine
      shall be incurred with respect thereto; provided, however, that no
      such taxes, assessments and governmental charges referred to in clause
      (i) above or claims referred to in clause (ii) above (and interest,
      penalties or fines relating thereto) need be paid if being contested in good
      faith by appropriate proceedings diligently instituted and conducted and if
      such
      reserve or other appropriate provision, if any, as shall be required in
      conformity with Agreement Accounting Principles shall have been made
      therefor.

     

    Insurance.  The
      Borrower shall maintain for itself and its Subsidiaries, or shall cause each
      of
      its Subsidiaries to maintain in full force and effect, insurance policies and
      programs, with such deductibles or self-insurance amounts as reflect coverage
      that is reasonably consistent with prudent industry practice as determined
      by
      the Borrower.

     

    Inspection
      of
      Property; Books and Records; Discussions.  The Borrower shall
      permit and cause each of the Borrower’s Subsidiaries to permit, any authorized
      representative(s) designated by either the Administrative Agent or any Lender
      to
      visit and inspect any of the properties of the Borrower or any of its
      Subsidiaries, to examine their respective financial and accounting records
      and
      other material data relating to their respective businesses or the transactions
      contemplated hereby (including, without limitation, in connection with
      environmental compliance, hazard or liability), and to discuss their affairs,
      finances and accounts with their officers and independent certified public
      accountants, all upon reasonable notice and at such reasonable times during
      normal business hours, as often as may be reasonably requested (provided that
      an
      officer of the Borrower or any of its Subsidiaries may, if it so desires, be
      present at and participate in any such discussion).  The Borrower
      shall keep and maintain, and cause each of the Borrower’s Subsidiaries to keep
      and maintain, in all material respects, proper books of record and account
      in
      which entries in conformity with Agreement Accounting Principles shall be made
      of all dealings and transactions in relation to their respective businesses
      and
      activities.  If a Default has occurred and is continuing, the
      Borrower, upon the Administrative Agent’s request, shall turn over copies of any
      such records to the Administrative Agent or its representatives.

     

    ERISA
      Compliance.  The Borrower shall, and shall cause each of the
      Borrower’s Subsidiaries to, establish, maintain and operate all Plans to comply
      in all material respects with the provisions of ERISA and shall operate all
      Plans and Non-ERISA Commitments to comply in all material respects with the
      applicable provisions of the Code, all other applicable laws, and the
      regulations and interpretations thereunder and the respective requirements
      of
      the governing documents for such Plans and Non-ERISA Commitments, except for
      any
      noncompliance which, individually or in the aggregate, could not reasonably
      be
      expected to have a Material Adverse Effect.

     

    Maintenance
      of
      Property.  The Borrower shall cause all property necessary for the
      conduct of its business or the business of any Subsidiary to be maintained
      and
      kept in good condition, repair and working order and supplied with all necessary
      equipment and shall cause to be made all necessary repairs, renewals,
      replacements, betterments and improvements thereof, all as in the judgment
      of
      the Borrower may be necessary for the conduct of its business; provided,
however, that nothing in this Section 7.2(H) shall prevent the
      Borrower from discontinuing the operation or maintenance of any of such property
      if such discontinuance is, in the judgment of the Borrower, desirable in the
      conduct of its business or the business of any Subsidiary and not
      disadvantageous in any material respect to the Administrative Agent or the
      Lenders.

     

    Environmental
      Compliance.  (a) The Borrower and its Subsidiaries shall comply
      with all Environmental, Health or Safety Requirements of Law, except where
      noncompliance will not have or is not reasonably likely to subject the Borrower
      or any of its Subsidiaries, individually or in the aggregate, to liability
      in
      excess of $30,000,000.

     

    Use
      of
      Proceeds.  The Borrower shall use the proceeds of the Loans solely
      to finance the Designated Acquisition (including to pay merger consideration
      owing to former shareholders of the Target and to refinance certain existing
      indebtedness of the Target and its Subsidiaries) and the transaction costs
      and
      expenses incurred in connection therewith and herewith.

     

    Addition
      of
      Subsidiary Guarantors.  (a)  New
      Subsidiaries.  The Borrower shall cause each New Subsidiary that
      is, at any time, a Material Domestic Subsidiary (other than a SPV) to deliver
      to
      the Administrative Agent an executed Supplement to become a Subsidiary Guarantor
      under the Subsidiary Guaranty in the form of Exhibit G attached hereto (a
“Supplement”) and appropriate corporate resolutions, opinions and other
      documentation in form and substance reasonably satisfactory to the
      Administrative Agent, such Supplement and other documentation to be delivered
      to
      the Administrative Agent as promptly as possible upon the creation, acquisition
      of or capitalization thereof or if otherwise necessary to remain in compliance
      with Section 7.3(Q), but in any event within thirty (30) days of such
      creation, acquisition or capitalization.

     

    (b)           Additional
      Material Domestic Subsidiaries.  If any consolidated Subsidiary of
      the Borrower (other than a New Subsidiary to the extent addressed in Section
      7.2(K)(a) or a SPV) becomes a Material Domestic Subsidiary, the Borrower
      shall cause any such Material Domestic Subsidiary to deliver to the
      Administrative Agent an executed  Supplement to become a Subsidiary
      Guarantor and appropriate corporate resolutions, opinions and other
      documentation in form and substance reasonably satisfactory to the
      Administrative Agent in connection therewith, such Supplement and other
      documentation to be delivered to the Administrative Agent as promptly as
      possible but in any event within thirty (30) days following the date on which
      such consolidated Subsidiary became a Material Domestic Subsidiary.

     

    (c)           Additional
      Subsidiary Guarantors.  (v)If at any time a member of the Senior
      Management Team of the Borrower has actual knowledge that the aggregate assets
      of all of the Borrower’s domestic consolidated Subsidiaries (other than SPVs)
      which are not Subsidiary Guarantors exceed ten percent (10%) of Consolidated
      Domestic Assets of the Borrower and its consolidated Subsidiaries (other than
      the SPVs), as calculated by the Borrower, the Borrower shall cause such domestic
      consolidated Subsidiaries as are necessary to reduce such aggregate assets
      to or
      below ten percent (10%) of such Consolidated Domestic Assets to deliver to
      the
      Administrative Agent executed Supplements to become Subsidiary Guarantors and
      appropriate corporate resolutions, opinions and other documentation in form
      and
      substance reasonably satisfactory to the Administrative Agent in connection
      therewith, such Supplements and other documentation to be delivered to the
      Administrative Agent as promptly as possible but in any event within thirty
      (30)
      days following the initial date on which a member of the Senior Management
      Team
      of the Borrower obtained actual knowledge that such aggregate assets exceed
      ten
      percent (10%) of such Consolidated Domestic Assets.

     

    If
      at any time any
      Subsidiary of the Borrower which is not a Subsidiary Guarantor guaranties any
      Indebtedness of the Borrower for which the Borrower is a primary obligor (other
      than solely as a guarantor of obligations of its Affiliates or other third
      parties), other than the Indebtedness hereunder, the Borrower shall cause such
      Subsidiary to deliver to the Administrative Agent an executed Supplement to
      become a Subsidiary Guarantor and appropriate corporate resolutions, opinions
      and other documentation in form and substance reasonably satisfactory to the
      Administrative Agent in connection therewith, such Supplement and other
      documentation to be delivered to the Administrative Agent concurrently with
      the
      delivery of the guaranty of such other Indebtedness.

     

    For
      the avoidance
      of doubt and notwithstanding the foregoing, no Subsidiary Guaranty shall be
      required to be delivered prior to the Funding Date; provided,
however, that no thirty-day grace period described in any of the
      foregoing subsections of this Section 7.2(K) shall apply to any of the
      Subsidiary Guarantees required to be delivered on the Funding Date (as described
      in clause (i) of the definition of “Subsidiary Guarantors”) and related
      deliveries required as a condition to the Funding Date pursuant to Section
      5.1 hereto.

     

    Negative
      Covenants.

     

    Subsidiary
      Indebtedness.  The Borrower shall not permit any of its
      Subsidiaries directly or indirectly to create, incur, assume or otherwise become
      or remain directly or indirectly liable with respect to any Indebtedness,
      except:

     

    Indebtedness
      of the
      Subsidiaries under the Subsidiary Guaranty;

     

    Indebtedness
      in
      respect of guaranties executed by any Subsidiary Guarantor with respect to
      any
      Indebtedness of the Borrower, provided such Indebtedness is not incurred
      by the Borrower in violation of this Agreement;

     

    Indebtedness
      in
      respect of obligations secured by Customary Permitted Liens;

     

    Indebtedness
      constituting Contingent Obligations permitted by Section
      7.3(E);

     

    Indebtedness
      arising from loans (a) from any Subsidiary to any wholly-owned Subsidiary or
      (b)
      from the Borrower to any wholly-owned Subsidiary; provided, that if any
      Subsidiary Guarantor is the obligor on such Indebtedness, such Indebtedness
      shall be expressly subordinate to the payment in full in cash of the Obligations
      on terms satisfactory to the Administrative Agent;

     

    Indebtedness
      in
      respect of Hedging Obligations permitted under Section
      7.3(O);

     

    Indebtedness
      with
      respect to surety, appeal and performance bonds obtained by any of the
      Borrower’s Subsidiaries in the ordinary course of business;

     

    Indebtedness
      incurred in connection with the Receivables Purchase Documents, provided,
      that Receivables Facility Attributed Indebtedness incurred in connection
      therewith does not exceed $250,000,000 in the aggregate at any time outstanding;
      and

     

    Other
      Indebtedness
      in addition to that referred to elsewhere in this Section 7.3(A) incurred
      by the Borrower’s Subsidiaries; provided that no Default or Unmatured
      Default shall have occurred and be continuing at the date of such incurrence
      or
      would result therefrom; and providedfurther that the aggregate
      outstanding amount of all Indebtedness incurred by the Borrower’s Subsidiaries
      (other than Indebtedness incurred pursuant to clauses (i), (ii),
(v), (vi) and (viii) of this Section 7.3(A)) shall
      not at any time exceed 25% of the Borrower’s Consolidated Total
      Capitalization.

     

    Sales
      of
      Assets.  Neither the Borrower nor any of its Subsidiaries shall
      sell, assign, transfer, lease, convey or otherwise dispose of any property,
      whether now owned or hereafter acquired, or any income or profits therefrom,
      or
      enter into any agreement to do so, except:

     

    sales
      of Inventory
      in the ordinary course of business;

     

    the
      disposition in
      the ordinary course of business of Equipment that is obsolete, excess or no
      longer used or useful in the Borrower’s or its Subsidiaries’
businesses;

     

    any
      Permitted
      Receivables Transfer; provided that the amount of Receivables Facility
      Attributed Indebtedness does not exceed $250,000,000 in the aggregate at any
      time outstanding;

     

    sales,
      transfers or
      other dispositions of property to the Borrower or a Subsidiary Guarantor;
      and

     

    sales,
      assignments,
      transfers, leases, conveyances or other dispositions of other assets (other
      than
      pursuant to clauses (i), (ii), (iii) and (iv) above)
      if such transaction (a) is for not less than fair market value, and (b) when
      combined with all such other transactions (each such transaction being valued
      at
      book value) occurring during the fiscal year in which such proposed transaction
      occurred represents the disposition of not greater than fifteen percent (15%)
      of
      the Borrower’s Consolidated Assets (such Consolidated Assets being calculated
      for the end of the fiscal year immediately preceding that in which such
      transaction is proposed to be entered into).

     

    Liens.  Neither
      the Borrower nor any of its Subsidiaries shall directly or indirectly create,
      incur, assume or permit to exist any Lien on or with respect to any of their
      respective property or assets except:

     

    (a)
      Liens, if any,
      created by the Loan Documents or otherwise securing the Obligations and (b)
      Liens created by the “Loan Documents” under and as defined in the Existing
      Credit Agreement or otherwise securing the “Obligations” (as such terms are
      defined in the Existing Credit Agreement), provided, that such Liens are
      shared on an equal and ratable basis with the Lenders with respect to the
      Obligations hereunder;

     

    Customary
      Permitted
      Liens;

     

    Liens
      arising under
      the Receivables Purchase Documents; and

     

    other
      Liens,
      including Permitted Existing Liens, (a) securing Indebtedness of the Borrower
      and/or (b) securing Indebtedness of the Borrower’s Subsidiaries as permitted
      pursuant to Section 7.3(A), all of which, when taken together, secure
      Indebtedness in an aggregate outstanding principal amount not to exceed five
      percent (5%) of Consolidated Assets at any time.

     

    In
      addition, neither the Borrower nor any of its Subsidiaries shall become a party
      to any agreement, note, indenture or other instrument, or take any other action,
      which would prohibit the creation of a Lien on any of its properties or other
      assets in favor of the Administrative Agent for the benefit of itself and the
      Holders of Obligations, as collateral for the Obligations; provided, that
      any agreement, note, indenture or other instrument in connection with purchase
      money indebtedness (including Capitalized Leases) may prohibit the creation
      of a
      Lien in favor of the Administrative Agent for the benefit of itself and the
      Holders of Obligations on the items of property obtained with the proceeds
      of
      such purchase money indebtedness; provided, further, that (a) each
      Senior Note Purchase Agreement in connection with the Senior Notes may prohibit
      the creation of a Lien in favor of the Administrative Agent for the benefit
      of
      itself and the Holders of Obligations, as collateral for the Obligations, (b)
      the Receivables Purchase Documents may prohibit the creation of a Lien with
      respect to all of the assets of the SPV and with respect to the Receivables
      and
      Related Security of any of the Originators in favor of the Administrative Agent
      for the benefit of itself and the Holders of Obligations, as collateral for
      the
      Obligations, (c) the Existing Credit Agreement may prohibit the creation of
      a
      Lien in favor of the Administrative Agent, for the benefit of itself and the
      Holders of Secured Obligations, as collateral for the Obligations unless the
      holders of the obligations under the Existing Credit Agreement shall be provided
      with an equal and ratable Lien and (d) the Singapore Credit Agreement may
      prohibit the creation of a Lien by the Borrower on the Capital Stock or assets
      of members of the Singapore Regional Group to secure the
      Obligations.

    Investments.  Except
      to the extent permitted pursuant to paragraph (G) below, neither the
      Borrower nor any of its Subsidiaries shall directly or indirectly make or own
      any Investment except:

     

    Investments
      in cash
      and Cash Equivalents;

     

    Permitted
      Existing
      Investments in an amount not greater than the amount thereof on the Closing
      Date;

     

    Investments
      in
      trade receivables or received in connection with the bankruptcy or
      reorganization of suppliers and customers and in settlement of delinquent
      obligations of, and other disputes with, customers and suppliers arising in
      the
      ordinary course of business;

     

    Investments
      consisting of deposit accounts maintained by the Borrower and its
      Subsidiaries;

     

    Investments
      consisting of non-cash consideration from a sale, assignment, transfer, lease,
      conveyance or other disposition of property permitted by Section
      7.3(B);

     

    Investments
      in any
      consolidated Subsidiaries (other than joint ventures);

     

    Investments
      in
      joint ventures and nonconsolidated Subsidiaries in an aggregate amount not
      to
      exceed $50,000,000;

     

    Investments
      constituting Permitted Acquisitions;

     

    Investments
      constituting Indebtedness permitted by Section 7.3(A) or Contingent
      Obligations permitted by Section 7.3(E);

     

    Investments
      in the
      SPVs (a) required in connection with the Receivables Purchase Documents and
      (b)
      resulting from the transfers permitted by Section 7.3(B)(iii);
      and

     

    Investments
      in
      addition to those referred to elsewhere in this Section 7.3(D) in an
      aggregate amount not to exceed $50,000,000.

     

    Contingent
      Obligations.  None of the Borrower’s Subsidiaries shall directly
      or indirectly create or become or be liable with respect to any Contingent
      Obligation, except: (i) recourse obligations resulting from endorsement of
      negotiable instruments for collection in the ordinary course of business; (ii)
      Permitted Existing Contingent Obligations; (iii) obligations, warranties, and
      indemnities, not relating to Indebtedness of any Person, which have been or
      are
      undertaken or made in the ordinary course of business and not for the benefit
      of
      or in favor of an Affiliate of the Borrower or such Subsidiary; (iv) Contingent
      Obligations with respect to surety, appeal and performance bonds obtained by
      the
      Borrower or any Subsidiary in the ordinary course of business; (v) Contingent
      Obligations of the Subsidiary Guarantors under the Subsidiary Guaranty; (vi)
      Contingent Obligations of Subsidiaries which are guarantors under a guaranty
      of
      the Indebtedness evidenced by the Existing Credit Agreement, the Senior Notes
      and the Senior Note Purchase Agreements; (vii) Contingent Obligations of the
      Borrower or any of its Subsidiaries arising under the Receivables Purchase
      Documents; (viii) Contingent Obligations of the Singapore Regional Group under
      the Singapore Guarantees; (ix) Contingent Obligations of non-domestic
      Subsidiaries represented by guarantees of obligations of other non-domestic
      Subsidiaries; (x) Contingent Obligations of Subsidiaries which are guarantors
      under a guaranty of Indebtedness permitted under Section 7.3(A)(ix); and
      (xi) Contingent Obligations incurred in the ordinary course of business by
      any
      of the Borrower’s Subsidiaries in respect of obligations of any
      Subsidiary.

     

    Conduct
      of
      Business; New Subsidiaries; Acquisitions.  Except as expressly
      provided in clause (c) in the definition of “Permitted Acquisition”
below, neither the Borrower nor any of its Subsidiaries shall engage
      in any
      business other than the businesses engaged in by the Borrower and its
      Subsidiaries on the date of such transaction and any business or activities
      which are substantially similar, related or incidental thereto.  The
      Borrower may create, acquire in a Permitted Acquisition or capitalize any
      Subsidiary (a “New Subsidiary”) after the date hereof if (i) no Default or
      Unmatured Default shall have occurred and be continuing or would result
      therefrom; (ii) after such creation, acquisition or capitalization, all of
      the
      representations and warranties contained herein shall be true and correct;
      and
      (iii) after such creation, acquisition or capitalization the Borrower shall
      be
      in compliance with the terms of Sections 7.2(K) and
7.3(Q).

     

    Without
      in any way
      limiting the foregoing, neither the Borrower nor any of its Subsidiaries shall
      make any Acquisitions, other than (x) the Designated Acquisition, subject to
      the
      conditions specified in this Agreement and (y) other Acquisitions meeting the
      following requirements or otherwise approved by the Required Lenders (each
      of
      such Designated Acquisition or any other Acquisition complying with the
      following requirements being referred to as a “Permitted
      Acquisition”):

     

    no
      Default or
      Unmatured Default shall have occurred and be continuing or would result from
      such Acquisition or the incurrence of any Indebtedness in connection therewith,
      and all of the representations and warranties contained herein shall be true
      and
      correct on and as of the date such Acquisition with the same effect as though
      made on and as of such date;

     

    the
      purchase is
      consummated on a non-hostile basis pursuant to a negotiated acquisition
      agreement approved by the board of directors or other applicable governing
      body
      of the seller prior to the commencement of such Acquisition; provided,
however, that nothing in this clause (b) shall prevent the
      Borrower from enforcing its rights against a seller following a default in
      such
      seller’s obligations under any such agreement;

     

    the
      businesses
      being acquired shall be consumer product companies or other businesses that
      are
      substantially similar, related or incidental to the businesses or activities
      engaged in by the Borrower and its Subsidiaries as of the Closing Date, as
      well
      as suppliers to or distributors of products similar to those of the Borrower
      and
      its Subsidiaries; provided, however, that the Borrower and its
      Subsidiaries shall be permitted to acquire businesses that do not satisfy the
      foregoing criteria in this clause (c) so long as the aggregate purchase
      price for all such acquisitions does not exceed five percent (5%) of the
      Borrower’s consolidated tangible net assets (on a proforma basis)
      as of the date of the consummation of such Acquisition; and

     

    prior
      to each such
      Acquisition, the Borrower shall determine that after giving effect to such
      Acquisition and the incurrence of any Indebtedness by the Borrower or any of
      its
      Subsidiaries, to the extent permitted by Section 7.3(A), in connection
      therewith, on a proforma basis using historical audited and
      reviewed unaudited financial statements obtained from the seller, broken down
      by
      fiscal quarter in the Borrower’s reasonable judgment, as if the Acquisition and
      such incurrence of Indebtedness had occurred on the first day of the
      twelve-month period ending on the last day of the Borrower’s most recently
      completed fiscal quarter, the Borrower would have been in compliance with the
      financial covenants in Section 7.4 and not otherwise in
      Default.

     

    Transactions
      with Shareholders and Affiliates.  Except for (a) the transactions
      set forth on Schedule 7.3(G), (b) Permitted Receivables Transfers and (c)
      Investments permitted by Section 7.3(D), neither the Borrower nor any of
      its Subsidiaries shall directly or indirectly enter into or permit to exist
      any
      transaction (including, without limitation, the purchase, sale, lease or
      exchange of any property or the rendering of any service) with any holder or
      holders of any of the Equity Interests of the Borrower, or with any Affiliate
      of
      the Borrower which is not its Subsidiary, on terms that are less favorable
      to
      the Borrower or any of its Subsidiaries, as applicable, than those that might
      be
      obtained in an arm’s length transaction at the time from Persons who are not
      such a holder or Affiliate.

     

    Restriction
      on
      Fundamental Changes.  Neither the Borrower nor any of its
      Subsidiaries shall enter into any merger or consolidation, or liquidate, wind-up
      or dissolve (or suffer any liquidation or dissolution), or convey, lease, sell,
      transfer or otherwise dispose of, in one transaction or series of transactions,
      all or substantially all of the Borrower’s or any such Subsidiary’s business or
      property, whether now or hereafter acquired, except (i) transactions permitted
      under Sections 7.3(B) or 7.3(F) (including the liquidation, winding up
      or dissolution of a Subsidiary in connection with a  transaction
      permitted under Section 7.3(B)), and (ii) a Subsidiary of the Borrower may
      be merged into, liquidated into or consolidated with the Borrower (in which
      case
      the Borrower shall be the surviving corporation) or any wholly-owned Subsidiary
      of the Borrower; provided if a Subsidiary Guarantor is merged into,
      liquidated into or consolidated with another Subsidiary of the Borrower, the
      surviving Subsidiary shall also be or shall become a Subsidiary Guarantor to
      the
      extent required under Section 7.2(K) or 7.3(Q)
      hereunder.

     

    Sales
      and
      Leasebacks.  Neither the Borrower nor any of its Subsidiaries
      shall become liable, directly, by assumption or by Contingent Obligation, with
      respect to any lease, whether an operating lease or a Capitalized Lease, of
      any
      property (whether real or personal or mixed), (i) which it or one of its
      Subsidiaries sold or transferred or is to sell or transfer to any other Person,
      or (ii) which it or one of its Subsidiaries intends to use for substantially
      the
      same purposes as any other property which has been or is to be sold or
      transferred by it or one of its Subsidiaries to any other Person in connection
      with such lease, unless in either case the sale involved is not prohibited
      under
Section 7.3(B) and the lease involved is not prohibited under Section
      7.3(A).

     

    Margin
      Regulations; Use of Proceeds.  Neither the Borrower nor any of its
      Subsidiaries, shall use all or any portion of the proceeds of any credit
      extended under this Agreement (i) to purchase or carry Margin Stock in violation
      of any of the regulations of the Board, including Regulations T, U and X or
      (ii)
      for any purpose other than to finance the Designated Acquisition (including
      to
      pay merger consideration owing to former shareholders of the Target and to
      refinance certain existing indebtedness of the Target and its Subsidiaries)
      and
      the transaction costs and expenses incurred in connection
      therewith.

     

    ERISA.  The
      Borrower shall not:

     

    permit
      to exist any
      accumulated funding deficiency (as defined in Sections 302 of ERISA and 412
      of
      the Code), with respect to any Benefit Plan, whether or not waived;

     

    terminate,
      or
      permit any Controlled Group member to terminate, any Benefit Plan which would
      result in liability of the Borrower or any Controlled Group member under Title
      IV of ERISA;

     

    fail,
      or permit any
      Controlled Group member to fail, to pay any required installment or any other
      payment required under Section 412 of the Code on or before the due date for
      such installment or other payment; or

     

    permit
      any unfunded
      liabilities with respect to any Foreign Pension Plan;

     

    except
      where such
      transactions, events, circumstances, or failures are not, individually or in
      the
      aggregate, reasonably expected to result in liability individually or in the
      aggregate in excess of $25,000,000 or have a Material Adverse
      Effect.

    Corporate
      Documents.  Neither the Borrower nor any of its Subsidiaries shall
      amend, modify or otherwise change any of the terms or provisions in any of
      their
      respective constituent documents as in effect on the date hereof in any manner
      adverse to the interests of the Lenders, without the prior written consent
      of
      the Required Lenders.

     

    Fiscal
      Year.  Neither the Borrower nor any of its consolidated
      Subsidiaries shall change its fiscal year for accounting or tax purposes from
      a
      twelve-month period ending September 30 of each year.

     

    Subsidiary
      Covenants.  The Borrower will not, and will not permit any
      Subsidiary to, create or otherwise cause to become effective any consensual
      encumbrance or restriction of any kind on the ability of any Subsidiary to
      pay
      dividends or make any other distribution on its stock, redeem or repurchase
      its
      stock, make any other similar payment or distribution, pay any Indebtedness
      or
      other obligation owed to the Borrower or any other Subsidiary, make loans or
      advances or other Investments in the Borrower or any other Subsidiary, to sell,
      transfer or otherwise convey any of its property to the Borrower or any other
      Subsidiary or merge, consolidate with or liquidate into the Borrower or any
      other Subsidiary other than pursuant to (i) this Agreement or the Existing
      Credit Agreement, (ii) the Receivables Purchase Documents and (iii) the
      Singapore Credit Agreement; provided, that the Singapore Credit Agreement
      shall not in any way prohibit any member of the Singapore Regional Group from
      paying dividends or making any other distribution on its stock, redeeming or
      repurchasing its stock, making any other similar payment or distribution, or
      paying any Indebtedness or other obligation owed to the Borrower or any
      Subsidiary Guarantor.

     

    Hedging
      Obligations.  The Borrower shall not and shall not permit any of
      its Subsidiaries to enter into any Hedging Arrangements other than Hedging
      Arrangements entered into by the Borrower or its Subsidiaries pursuant to which
      the Borrower or such Subsidiary has hedged its or its Subsidiaries’ reasonably
      estimated interest rate, foreign currency or commodity exposure and which are
      of
      a non-speculative nature.

     

    Issuance
      of
      Disqualified Stock.  From and after the Closing Date, neither the
      Borrower, nor any of its Subsidiaries shall issue any Disqualified
      Stock.  All issued and outstanding Disqualified Stock shall be treated
      as Indebtedness for borrowed money for all purposes of this Agreement, and
      the
      amount of such deemed Indebtedness shall be the aggregate amount of the
      liquidation preference of such Disqualified Stock.

     

    Non-Guarantor
      Subsidiaries.  The Borrower will not at any time permit the
      aggregate assets of all of the Borrower’s domestic consolidated Subsidiaries
      (other than the SPVs) which are not Subsidiary Guarantors to exceed ten percent
      (10%) of Consolidated Domestic Assets of the Borrower and its consolidated
      Subsidiaries (other than the SPVs).  The Borrower shall not permit any
      of its Subsidiaries (including non-domestic Subsidiaries) to guaranty any
      Indebtedness of the Borrower for which the Borrower is a primary obligor (other
      than solely as a guarantor of obligations of its Affiliates or other third
      parties) other than the Indebtedness hereunder unless each such Subsidiary
      is a
      Subsidiary Guarantor under the Subsidiary Guaranty.

     

    Temporary
      Suspension of Certain Terms of the Negative
      Covenants.  Notwithstanding anything to the contrary in this
Section 7.3, until the date on which amendments to, or consents under,
      each of the Existing Credit Facility and the Singapore Credit Facility have
      been
      delivered to the Administrative Agent, (a) the terms of Section 7.3(C)
      shall not prohibit the creation of a Lien by the Borrower of any of it
      Subsidiaries on any of its properties or other assets in favor of the agent
      under the Existing Credit Facility (for the benefit of itself and the lenders
      thereunder) or the agent under the Singapore Credit Facility (for the benefit
      of
      itself and the lenders thereunder), in either case, as collateral for the
      obligations under such facility, (b) the last paragraph of Section 7.3(C)
      shall not apply to the Existing Credit Facility or the Singapore Credit
      Facility, (c) Section 7.3(Q) shall have no force or effect and (d) the
terms of this Section 7.3 shall not encumber or restrict the ability of
      any Subsidiary to pay dividends or make any other distribution on its stock,
      redeem or repurchase its stock, make any other similar payment or distribution,
      pay any Indebtedness or other obligation owed to the Borrower or any other
      Subsidiary, make loans or advances or other Investments in the Borrower or
      any
      other Subsidiary, to sell, transfer or otherwise convey any of its property
      to
      the Borrower or any other Subsidiary or merge, consolidate with or liquidate
      into the Borrower or any other Subsidiary.  For the avoidance of
      doubt, it is understood and agreed that (x) the Advance shall not be made
      hereunder unless and until fully executed and effective amendments to, or
      consents under, the Existing Credit Facility and the Singapore Credit Facility
      have been delivered to the Administrative Agent and the Lenders as required
      by
Section 5.1 and (y) on and as of the Funding Date, this Section
      7.3(R) shall be of no further force and effect, including for the purpose of
      confirming the absence of any Default or Unmatured Default as a condition to
      making the Advance as required by Section 5.1.

     

    Financial
      Covenants.  The Borrower shall comply with the
      following:

     

    Maximum
      Leverage
      Ratio.  The Borrower shall not permit the ratio of (i) the sum of
      all Indebtedness of the Borrower and its Subsidiaries minus, solely for the
      purposes of the calculation of the Covenant Leverage Ratio pursuant to this
      Section 7.4(A), Receivables Facility Attributed Indebtedness to (ii)
      EBITDA (such ratio, the “Covenant Leverage Ratio”) at any time to be greater
      than 3.50 to 1.00; provided that if, at the end of any fiscal quarter, the
      Covenant Leverage Ratio is greater than 3.50 to 1.00 and the Borrower has
      entered into a transaction or transactions, including, but not limited to,
      Permitted Acquisitions or repurchases of the Borrower’s Capital Stock within the
      two most recently ended fiscal quarters (including such fiscal quarter) (a
      fiscal quarter in which all such conditions are satisfied, a “Trigger Quarter”),
      then the Covenant Leverage Ratio may be greater than 3.50 to 1.00 but shall
      not
      exceed 4.00 to 1.00 for such Trigger Quarter and the next succeeding three
      fiscal quarters; provided that, following the occurrence of a Trigger
      Quarter, no subsequent Trigger Quarter shall be deemed to have occurred or
      to
      exist for any reason unless and until the Covenant Leverage Ratio has returned
      to less than or equal to 3.50 to 1.00 as of the end of at least one fiscal
      quarter following the occurrence of such initial Trigger Quarter;
provided, further that, the Covenant Leverage Ratio shall return
      to less than or equal to 3.50 to 1.00 no later than the fourth fiscal quarter
      after such initial Trigger Quarter.  The Covenant Leverage Ratio shall
      be calculated as of the last day of each fiscal quarter based upon (a) for
      Indebtedness and Receivables Facility Attributed Indebtedness, Indebtedness
      and
      Receivables Facility Attributed Indebtedness, as the case may be, as of the
      last
      day of each such fiscal quarter; and (b) for EBITDA, the actual amount for
      the
      four-quarter period ending on such day, calculated, with respect to Permitted
      Acquisitions, on a proforma basis using unadjusted historical
      audited and reviewed unaudited financial statements obtained from the seller
      (with the EBITDA component thereof broken down by fiscal quarter in the
      Borrower’s reasonable judgment).

     

    Minimum
      Interest
      Expense Coverage Ratio.  The Borrower shall maintain a ratio (the
“Interest Expense Coverage Ratio”) for any applicable period of (a) EBIT for
      such period to (b) Interest Expense for such period of greater than 3.00 to
      1.00
      for each fiscal quarter.  The Interest Expense Coverage Ratio shall be
      calculated as of the last day of each fiscal quarter for the four-quarter period
      ending on such day, calculated, with respect to Permitted Acquisitions, on
      a
proforma basis using unadjusted historical audited and reviewed
      unaudited financial statements obtained from the seller (with the EBITDA
      component thereof broken down by fiscal quarter in the Borrower’s reasonable
      judgment).

     

    DEFAULTS

     

    Defaults.  Each
      of the following occurrences shall constitute a Default under this
      Agreement:

     

    Failure
      to Make
      Payments When Due.  The Borrower shall (i) fail to pay when due
      any of the Obligations consisting of principal with respect to the Loans or
      (ii)
      shall fail to pay within five (5) Business Days of the date when due any of
      the
      other Obligations under this Agreement or the other Loan Documents.

     

    Breach
      of
      Certain Covenants.  The Borrower shall fail duly and punctually to
      perform or observe any agreement, covenant or obligation binding on the Borrower
      or there shall otherwise be a breach of any covenant under:

     

    Sections
      7.1
      or 7.2 (other than Section 7.2(K)) and such failure or breach
      shall continue unremedied for thirty (30) days after the earlier to occur of
      (a)
      the date on which written notice from the Administrative Agent or any Lender
      is
      received by the Borrower of such breach and (b) the date on which a member
      of
      the Senior Management Team of the Borrower or any Subsidiary Guarantor had
      knowledge of the existence of such breach or should have known of the existence
      of such breach; or

     

    Sections
      7.2(K),
      7.3 or 7.4.

     

    Breach
      of
      Representation or Warranty.  Any representation or warranty made
      or deemed made by the Borrower to the Administrative Agent or any Lender herein
      or by the Borrower or any of its Subsidiaries in any of the other Loan Documents
      or in any statement or certificate at any time given by any such Person pursuant
      to any of the Loan Documents shall be false or misleading in any material
      respect on the date as of which made (or deemed made).

     

    Other
      Defaults.  The Borrower shall default in the performance of or
      compliance with any term contained in this Agreement (other than as covered
      by
paragraphs (A) or (B) of this Section 8.1), or the Borrower
      or any of its Subsidiaries shall default in the performance of or compliance
      with any term contained in any of the other Loan Documents, and such default
      shall continue for thirty (30) days after the earlier to occur of (a) the date
      on which written notice from the Administrative Agent or any Lender is received
      by the Borrower of such breach and (b) the date on which a member of the Senior
      Management Team of the Borrower or any Subsidiary Guarantor had knowledge of
      the
      existence of such breach or should have known of the existence of such
      breach.

     

    Default
      as to
      Other Indebtedness.  The Borrower or any of its Subsidiaries shall
      fail to make any payment when due (whether by scheduled maturity, required
      prepayment, acceleration, demand or otherwise), beyond any period of grace
      provided, with respect to any Indebtedness (other than Indebtedness hereunder)
      which individually or together with other such Indebtedness as to which any
      such
      failure exists (other than hereunder) constitutes Material Indebtedness; or
      any
      breach, default or event of default (including any “Amortization Event” or event
      of like import in connection with the Receivables Purchase Facility) shall
      occur, or any other condition shall exist under any instrument, agreement or
      indenture pertaining to any such Material Indebtedness having such aggregate
      outstanding principal amount, beyond any period of grace, if any, provided
      with
      respect thereto, if the effect thereof is to cause an acceleration, mandatory
      redemption, a requirement that the Borrower or any of its Subsidiaries offer
      to
      purchase such Material Indebtedness or other required repurchase of such
      Material Indebtedness, or permit the holder(s) of such Material Indebtedness
      to
      accelerate the maturity of any such Material Indebtedness or require a
      redemption or other repurchase of such Material Indebtedness; or any such
      Material Indebtedness shall be otherwise declared to be due and payable (by
      acceleration or otherwise) or required to be prepaid, redeemed or otherwise
      repurchased by the Borrower or any of its Subsidiaries (other than by a
      regularly scheduled required prepayment) prior to the stated maturity
      thereof.

     

    Involuntary
      Bankruptcy; Appointment of Receiver, Etc.

     

    An
      involuntary case
      shall be commenced against the Borrower or any of the Borrower’s Material
      Subsidiaries and the petition shall not be dismissed, stayed, bonded or
      discharged within sixty (60) days after commencement of the case; or a court
      having jurisdiction in the premises shall enter a decree or order for relief
      in
      respect of  the Borrower or any of the Borrower’s Material
      Subsidiaries in an involuntary case, under any applicable bankruptcy, insolvency
      or other similar law now or hereinafter in effect; or any other similar relief
      shall be granted under any applicable federal, state, local or foreign
      law.

     

    A
      decree or order
      of a court having jurisdiction in the premises for the appointment of a
      receiver, liquidator, sequestrator, trustee, custodian or other officer having
      similar powers over the Borrower or any of the Borrower’s Material Subsidiaries
      or over all or a substantial part of the property of the Borrower or any of
      the
      Borrower’s Material Subsidiaries shall be entered; or an interim receiver,
      trustee or other custodian of the Borrower or any of the Borrower’s Material
      Subsidiaries or of all or a substantial part of the property of the Borrower
      or
      any of the Borrower’s Material Subsidiaries shall be appointed or a warrant of
      attachment, execution or similar process against any substantial part of the
      property of the Borrower or any of the Borrower’s Material Subsidiaries shall be
      issued and any such event shall not be stayed, dismissed, bonded or discharged
      within sixty (60) days after entry, appointment or issuance.

     

    Voluntary
      Bankruptcy; Appointment of Receiver, Etc.  The Borrower or any of
      the Borrower’s Material Subsidiaries (i) shall commence a voluntary case under
      any applicable bankruptcy, insolvency or other similar law now or hereafter
      in
      effect, (ii) shall consent to the entry of an order for relief in an involuntary
      case, or to the conversion of an involuntary case to a voluntary case, under
      any
      such law, (iii) shall consent to the appointment of or taking possession by
      a
      receiver, trustee or other custodian for all or a substantial part of its
      property, (iv) shall make any assignment for the benefit of creditors, (v)
      shall
      take any corporate action to authorize any of the foregoing or (vi) is generally
      not paying, or admits in writing its inability to pay, its debts as they become
      due.

     

    Judgments
      and
      Attachments.  Any money judgment(s) (other than a money judgment
      covered by insurance as to which the insurance company has not disclaimed or
      reserved the right to disclaim coverage), writ or warrant of attachment, or
      similar process against the Borrower or any of its Subsidiaries or any of their
      respective assets involving in any single case or in the aggregate an amount
      in
      excess of $30,000,000 is or are entered and shall remain undischarged,
      unvacated, unbonded or unstayed for a period of sixty (60) days or in any event
      later than fifteen (15) days prior to the date of any proposed sale
      thereunder.

     

    Dissolution.  Any
      order, judgment or decree shall be entered against the Borrower decreeing its
      involuntary dissolution or split up and such order shall remain undischarged
      and
      unstayed for a period in excess of sixty (60) days; or the Borrower shall
      otherwise dissolve or cease to exist except as specifically permitted by this
      Agreement.

     

    Loan
      Documents.  At any time, for any reason, any Loan Document as a
      whole that materially affects the ability of the Administrative Agent, or any
      of
      the Lenders to enforce the Obligations ceases to be in full force and effect
      or
      the Borrower or any of the Borrower’s Subsidiaries party thereto seeks to
      repudiate its obligations under any Loan Document.

     

    Termination
      Event.  Any Termination Event occurs which the Required Lenders
      believe is reasonably likely to subject either the Borrower or any of its
      Subsidiaries to liability individually or in the aggregate in excess of
      $30,000,000.

     

    Waiver
      of
      Minimum Funding Standard.  If the plan administrator of any Plan
      applies under Section 412(d) of the Code for a waiver of the minimum funding
      standards of Section 412(a) of the Code and the Required Lenders believe the
      substantial business hardship upon which the application for the waiver is
      based
      could reasonably be expected to subject either the Borrower or any of its
      Subsidiaries to liability individually or in the aggregate in excess of
      $30,000,000.

     

    Change
      of
      Control.  A Change of Control shall occur.

     

    [Reserved.]

     

    Environmental
      Matters.  The Borrower or any of its Subsidiaries shall be the
      subject of any proceeding or investigation pertaining to (i) the Release by
      the
      Borrower or any of its Subsidiaries of any Contaminant into the environment,
      (ii) the liability of the Borrower or any of its Subsidiaries arising from
      the
      Release by any other Person of any Contaminant into the environment, or (iii)
      any violation of any Environmental, Health or Safety Requirements of Law which
      by the Borrower or any of its Subsidiaries, which, in any case, has or is
      reasonably likely to subject either the Borrower or its Subsidiaries to
      liability individually or in the aggregate in excess of
      $30,000,000.

     

    Subsidiary
      Guarantor Revocation.  Any Subsidiary Guarantor shall terminate or
      revoke any of its obligations under the Subsidiary Guaranty or breach any of
      the
      material terms of such Subsidiary Guaranty.

     

    Receivables
      Purchase Document Events.  A “Termination Event” (as defined in
      the 2000 Receivables Sale Agreement), an “Amortization Event” (as defined in the
      2000 Receivables Purchase Agreement) or any other breach or event of like import
      under any replacement Receivables Purchase Documents permitted hereby (any
      such
      event, a “Receivables Facility Trigger Event”) shall (i) occur with respect to
      the conduct or performance of (a) any Originator, (b) any servicer of the
      Receivables (so long as such servicer is the Borrower or a Subsidiary thereof)
      under the Receivables Purchase Documents, (c) any guarantor of the obligations
      of any Originator or servicer under the Receivables Purchase Documents or (d)
      any of their respective Subsidiaries other than an SPV and (ii) result in the
      termination of reinvestments of collections or proceeds of Receivables and
      Related Security under any agreements evidencing Receivables Facility Attributed
      Indebtedness (it being understood and agreed that the occurrence of a
      Receivables Facility Trigger Event resulting solely from (x) the conduct or
      performance of an SPV and/or (y) the performance or quality of the Receivables
      securing the obligations under the Receivables Purchase Documents, taken
      together with the circumstances described in the foregoing clause (ii), shall
      not give rise to a Default under this Section 8.1(Q)).

     

    A
      Default shall be
      deemed “continuing” until cured or until waived in writing in accordance with
Section 9.3.

     

    ACCELERATION,
      DEFAULTING LENDERS; WAIVERS, AMENDMENTS AND
      REMEDIES

     

    Termination
      of
      Commitments; Acceleration.  If any Default described in Section
      8.1(F), (G) or (I) occurs with respect to the Borrower, the
      obligations of the Lenders to make Loans hereunder shall automatically terminate
      and the Obligations shall immediately become due and payable without any
      election or action on the part of the Administrative Agent or any
      Lender.  If any other Default occurs, the Required Lenders may
      terminate or suspend the obligations of the Lenders to make Loans hereunder
      or
      declare the Obligations to be due and payable, or both, whereupon the
      Obligations shall become immediately due and payable, without presentment,
      demand, protest or notice of any kind, all of which the Borrower expressly
      waives.

     

    Defaulting
      Lender.  In the event that any Lender fails to fund its Pro Rata
      Share of the Advance requested or deemed requested by the Borrower, which such
      Lender is obligated to fund under the terms of this Agreement (the funded
      portion of the Advance being hereinafter referred to as a “Non Pro Rata Loan”),
      until the earlier of such Lender’s cure of such failure and the termination of
      the Commitments, the proceeds of all amounts thereafter repaid to the
      Administrative Agent by the Borrower and otherwise required to be applied to
      such Lender’s share of all other Obligations pursuant to the terms of this
      Agreement shall be advanced to the Borrower by the Administrative Agent on
      behalf of such Lender to cure, in full or in part, such failure by such Lender,
      but shall nevertheless be deemed to have been paid to such Lender in
      satisfaction of such other Obligations.  Notwithstanding anything in
      this Agreement to the contrary:

     

    the
      foregoing
      provisions of this Section 9.2 shall apply only with respect to the
      proceeds of payments of Obligations and shall not affect the conversion or
      continuation of Loans pursuant to Section 2.9;

     

    any
      such Lender
      shall be deemed to have cured its failure to fund its Pro Rata Share, of the
      Advance at such time as an amount equal to such Lender’s original Pro Rata Share
      of the requested principal portion of the Advance is fully funded to the
      Borrower, whether made by such Lender itself or by operation of the terms of
      this Section 9.2, and whether or not the Non Pro Rata Loan with respect
      thereto has been repaid, converted or continued;

     

    amounts
      advanced to
      the Borrower to cure, in full or in part, any such Lender’s failure to fund its
      Pro Rata Share of the Advance (“Cure Loans”) shall bear interest at the rate
      applicable to Floating Rate Loans in effect from time to time, and for all
      other
      purposes of this Agreement shall be treated as if they were Floating Rate
      Loans;

     

    regardless
      of
      whether or not a Default has occurred or is continuing, and notwithstanding
      the
      instructions of the Borrower as to its desired application, all repayments
      of
      principal which, in accordance with the other terms of this Agreement, would
      be
      applied to the outstanding Floating Rate Loans shall be applied first,
      ratably to all Floating Rate Loans constituting Non Pro Rata Loans,
second, ratably to Floating Rate Loans other than those constituting Non
      Pro Rata Loans or Cure Loans and, third, ratably to Floating Rate Loans
      constituting Cure Loans;

     

    for
      so long as and
      until the earlier of any such Lender’s cure of the failure to fund its Pro Rata
      Share of the Advance and the termination of the Commitments, the term “Required
      Lenders” for purposes of this Agreement shall mean Lenders (excluding all
      Lenders whose failure to fund their respective Pro Rata Share of the Advance
      have not been so cured) whose Pro Rata Shares represent greater than fifty
      percent (50%) of the aggregate Pro Rata Shares of such Lenders; and

     

    for
      so long as and
      until any such Lender’s failure to fund its Pro Rata Share of the Advance is
      cured in accordance with Section 9.2(ii), such Lender shall not be
      entitled to any Facility Fees with respect to its Commitment or Loans, which
      Facility Fees shall accrue in favor of the Lenders which have funded their
      respective Pro Rata Share of the Advance, and shall be allocated among such
      performing Lenders ratably based upon their relative Commitments or
      Loans.

     

    Amendments.  Subject
      to the provisions of this Article IX, the Required Lenders (or the
      Administrative Agent with the consent in writing of the Required Lenders) and
      the Borrower may enter into agreements supplemental hereto for the purpose
      of
      adding or modifying any provisions to the Loan Documents or changing in any
      manner the rights of the Lenders or the Borrower hereunder or waiving any
      Default hereunder; provided, however, that no such supplemental
      agreement shall, without the consent of each Lender (which is not a defaulting
      Lender under the provisions of Section 9.2) adversely affected thereby
      (which shall be deemed to include all Lenders in the case of clauses
      (iii), (v), (vi) or (viii) below):

     

    Postpone
      or extend
      the Termination Date or any other date fixed for any payment of principal of,
      or
      interest on, the Loans or any fees or other amounts payable to such Lender
      (other than any modifications of the provisions relating to amounts, timing
      or
      application of prepayments of the Loans and other Obligations, which
      modifications shall require the approval only of the Required
      Lenders).

     

    Reduce
      the
      principal amount of any Loans, or reduce the rate or extend the time of payment
      of interest or fees thereon (other than a waiver of the application of the
      default rate of interest pursuant to Section 2.10 hereof).

     

    Reduce
      the
      percentage specified in the definition of Required Lenders or any other
      percentage of Lenders specified to be the applicable percentage in this
      Agreement to act on specified matters or amend the definitions of “Required
      Lenders” or “Pro Rata Share”.

     

    Increase
      the amount
      of the Commitment of such Lender hereunder or increase such Lender’s Pro Rata
      Share.

     

    Permit
      the Borrower
      to assign its rights under this Agreement.

     

    Other
      than pursuant
      to a transaction permitted by the terms of this Agreement, release any guarantor
      from its obligations under the Subsidiary Guaranty.

     

    Waive
      or amend any
      of the conditions set forth in Section 5.1.

     

    Amend
Section
      12.1 or 12.2.

     

    Amend
      this
Section 9.3.

     

    No
      amendment of any provision of this Agreement relating to the Administrative
      Agent shall be effective without the written consent of the Administrative
      Agent.  The Administrative Agent may waive payment of the fee required
      under Section 13.3(B)(iii) without obtaining the consent of any of the
      Lenders.

    Preservation
      of
      Rights.  No delay or omission of the Lenders or the Administrative
      Agent to exercise any right under the Loan Documents shall impair such right
      or
      be construed to be a waiver of any Default or an acquiescence therein, and
      the
      making of a Loan notwithstanding the existence of a Default or the inability
      of
      the Borrower to satisfy the conditions precedent to such Loan shall not
      constitute any waiver or acquiescence.  Any single or partial exercise
      of any such right shall not preclude other or further exercise thereof or the
      exercise of any other right, and no waiver, amendment or other variation of
      the
      terms, conditions or provisions of the Loan Documents whatsoever shall be valid
      unless in writing signed by the Lenders required pursuant to Section 9.3,
      and then only to the extent in such writing specifically set
      forth.  All remedies contained in the Loan Documents or by law
      afforded shall be cumulative and all shall be available to the Administrative
      Agent and the Lenders until all of the Obligations (other than contingent
      indemnity obligations) shall have been fully and indefeasibly paid and satisfied
      in cash and all financing arrangements among the Borrower and the Lenders shall
      have been terminated.

     

    GENERAL
      PROVISIONS

     

    Survival
      of
      Representations.  All representations and warranties of the
      Borrower contained in this Agreement shall survive delivery of this Agreement
      and the making of the Loans herein contemplated.

     

    Governmental
      Regulation.  Anything contained in this Agreement to the contrary
      notwithstanding, no Lender shall be obligated to extend credit to the Borrower
      in violation of any limitation or prohibition provided by any applicable statute
      or regulation.

     

    Performance
      of
      Obligations.  The Borrower agrees that after the occurrence and
      during the continuance of a Default, the Administrative Agent may, but shall
      have no obligation to, make any payment or perform any act required of the
      Borrower under any Loan Document to the extent the Administrative Agent
      determines that such action shall be necessary or advisable in order to protect
      or preserve the rights of the Lenders hereunder.  The Administrative
      Agent shall use its reasonable efforts to give the Borrower notice of any action
      taken under this Section 10.3 prior to the taking of such action or
      promptly thereafter provided the failure to give such notice shall not affect
      the Borrower’s obligations in respect thereof.  The Borrower agrees to
      pay the Administrative Agent, upon demand, the principal amount of all funds
      advanced by the Administrative Agent under this Section 10.3, together
      with interest thereon at the rate from time to time applicable to Floating
      Rate
      Loans from the date of such advance until the outstanding principal balance
      thereof is paid in full.  If the Borrower fails to make payment in
      respect of any such advance under this Section 10.3 within one (1)
      Business Day after the date the Borrower receives written demand therefor from
      the Administrative Agent, the Administrative Agent shall promptly notify each
      Lender and each Lender agrees that it shall thereupon make available to the
      Administrative Agent, in Dollars in immediately available funds, the amount
      equal to such Lender’s Pro Rata Share of such advance.  If such funds
      are not made available to the Administrative Agent by such Lender within one
      (1)
      Business Day after the Administrative Agent’s demand therefor, the
      Administrative Agent will be entitled to recover any such amount from such
      Lender together with interest thereon at the Federal Funds Effective Rate for
      each day during the period commencing on the date of such demand and ending
      on
      the date such amount is received.  The failure of any Lender to make
      available to the Administrative Agent its Pro Rata Share of any such
      unreimbursed advance under this Section 10.3 shall neither relieve any
      other Lender of its obligation hereunder to make available to the Administrative
      Agent such other Lender’s Pro Rata Share of such advance on the date such
      payment is to be made nor increase the obligation of any other Lender to make
      such payment to the Administrative Agent.  All outstanding principal
      of, and interest on, advances made under this Section 10.3 shall
      constitute Obligations subject to the terms of this Agreement until paid in
      full
      by the Borrower.

     

    Headings.  Section
      headings in the Loan Documents are for convenience of reference only, and shall
      not govern the interpretation of any of the provisions of the Loan
      Documents.

     

    Entire
      Agreement.  The Loan Documents embody the entire agreement and
      understanding among the Borrower, the Administrative Agent and the Lenders
      and
      supersede all prior agreements and understandings among the Borrower, the
      Administrative Agent and the Lenders relating to the subject matter thereof
      except as specifically set forth in a side letter among the Agents, the
      Arrangers and the Borrower, dated as of the Closing Date.

     

    Several
      Obligations; Benefits of this Agreement.  The respective
      obligations of the Lenders hereunder are several and not joint and no Lender
      shall be the partner or agent of any other Lender (except to the extent to
      which
      the Administrative Agent is authorized to act as such).  The failure
      of any Lender to perform any of its obligations hereunder shall not relieve
      any
      other Lender from any of its obligations hereunder.  This Agreement
      shall not be construed so as to confer any right or benefit upon any Person
      other than the parties to this Agreement and their respective successors and
      assigns.

     

    Expenses;
      Indemnification.

     

    Expenses.  The
      Borrower shall reimburse the Administrative Agent and the Arrangers for any
      reasonable costs, internal charges and out-of-pocket expenses (including
      reasonable attorneys’ and paralegals’ fees and time charges of attorneys and
      paralegals for the Administrative Agent and the Arrangers, which attorneys
      and
      paralegals may be employees of the Administrative Agent or the Arrangers) paid
      or incurred by the Administrative Agent or the Arrangers in connection with
      the
      preparation, negotiation, execution, delivery, syndication, review, amendment
      modification and, after the occurrence and during the continuance of a Default
      or an Unmatured Default, administration of the Loan Documents.  The
      Borrower also agrees to reimburse the Administrative Agent and the Arrangers
      and
      the Lenders for any reasonable costs and out-of-pocket expenses (including
      reasonable attorneys’ and paralegals’ fees and time charges of attorneys and
      paralegals for the Administrative Agent and the Arrangers and the Lenders,
      which
      attorneys and paralegals may be employees of the Administrative Agent or the
      Arrangers or the Lenders) paid or incurred by the Administrative Agent or the
      Arrangers or any Lender in connection with the collection of the Obligations
      and
      enforcement of the Loan Documents; provided, that after the occurrence
      and during the continuance of a Default, the Borrower agrees to reimburse the
      Administrative Agent, the Arrangers and the Lenders for all such costs and
      out-of-pocket expenses, whether or not reasonable.

     

    Indemnity.  The
      Borrower further agrees to defend, protect, indemnify, and hold harmless the
      Administrative Agent, each Arranger and each and all of the Lenders and each
      of
      their respective Affiliates, and each of the Administrative Agent or such
      Arranger’s, Lender’s, or Affiliate’s respective officers, directors, trustees,
      investment advisors, employees, attorneys and agents (including, without
      limitation, those retained in connection with the satisfaction or attempted
      satisfaction of any of the conditions set forth in Article V)
      (collectively, the “Indemnitees”) from and against any and all liabilities,
      obligations, losses, damages, penalties, actions, judgments, suits, claims,
      costs, expenses of any kind or nature whatsoever (including, without limitation,
      the fees and disbursements of counsel for such Indemnitees in connection with
      any investigative, administrative or judicial proceeding, whether or not such
      Indemnitees shall be designated a party thereto), imposed on, incurred by,
      or
      asserted against such Indemnitees in any manner relating to or arising out
      of:

     

    this
      Agreement, the
      other Loan Documents or any of the Transaction Documents, or any act, event
      or
      transaction related or attendant thereto or to the Transactions and the making
      of the Loans hereunder, the management of such Loans, the use or intended use
      of
      the proceeds of the Loans hereunder, or any of the other transactions
      contemplated by the Transaction Documents; or

     

    any
      liabilities,
      obligations, responsibilities, losses, damages, personal injury, death, punitive
      damages, economic damages, consequential damages, treble damages, intentional,
      willful or wanton injury, damage or threat to the environment, natural resources
      or public health or welfare, costs and expenses (including, without limitation,
      attorney, expert and consulting fees and costs of investigation, feasibility
      or
      remedial action studies), fines, penalties and monetary sanctions, interest,
      direct or indirect, known or unknown, absolute or contingent, past, present
      or
      future relating to violation of any Environmental, Health or Safety Requirements
      of Law arising from or in connection with the past, present or future operations
      of the Borrower, its Subsidiaries or any of their respective predecessors in
      interest, or, the past, present or future environmental, health or safety
      condition of any respective property of the Borrower or its Subsidiaries, the
      presence of asbestos-containing materials at any respective property of the
      Borrower or its Subsidiaries or the Release or threatened Release of any
      Contaminant into the environment (collectively, the “Indemnified
      Matters”);

     

    provided,
      however, the Borrower shall have no obligation to an Indemnitee hereunder
      with respect to Indemnified Matters caused by or resulting from the willful
      misconduct or gross negligence of such Indemnitee with respect to the Loan
      Documents, as determined by the final non-appealed judgment of a court of
      competent jurisdiction.  If the undertaking to indemnify, pay and hold
      harmless set forth in the preceding sentence may be unenforceable because it
      is
      violative of any law or public policy, the Borrower shall contribute the maximum
      portion which it is permitted to pay and satisfy under applicable law, to the
      payment and satisfaction of all Indemnified Matters incurred by the
      Indemnitees.

    Each
      Indemnitee,
      with respect to any action against it in respect of which indemnity may be
      sought under this Section, shall give written notice of the commencement of
      such
      action to the Borrower within a reasonable time after such Indemnitee is made
      a
      party to such action.  Upon receipt of any such notice by the
      Borrower, unless such Indemnitee shall be advised by its counsel that there
      are
      or may be legal defenses available to such Indemnitee that are different from,
      in addition to, or in conflict with, the defenses available to the Borrower
      or
      any of its Subsidiaries, the Borrower may participate with the Indemnitee in
      the
      defense of such Indemnified Matter, including the employment of counsel
      consented to by such Indemnitee (which consent shall not be unreasonably
      withheld); provided, however, nothing provided herein
      shall entitle (a) the Borrower or any of its Subsidiaries to assume the defense
      of such Indemnified Matter or (b) any Indemnitee to effect any settlement in
      respect of any indemnified matter without the Borrower’s consent, such consent
      not to be unreasonably withheld.

     

    Waiver
      of
      Certain Claims; Settlement of Claims.  The Borrower further agrees
      to assert no claim against any of the Indemnitees on any theory of liability
      seeking consequential, special, indirect, exemplary or punitive
      damages.  No settlement of any claim asserted against or likely to be
      asserted against an Indemnitee shall be entered into by the Borrower or any
      if
      its Subsidiaries with respect to any claim, litigation, arbitration or other
      proceeding relating to or arising out of the transactions evidenced by this
      Agreement, the other Loan Documents or in connection with the Transactions
      (whether or not the Administrative Agent or any Lender or any Indemnitee is
      a
      party thereto) unless such settlement releases such Indemnitee from any and
      all
      liability  with respect thereto.

     

    Survival
      of
      Agreements.  The obligations and agreements of the Borrower under
      this Section 10.7 shall survive the termination of this
      Agreement.

     

    Numbers
      of
      Documents.  All statements, notices, closing documents, and
      requests hereunder shall be furnished to the Administrative Agent with
      sufficient counterparts so that the Administrative Agent may furnish one to
      each
      of the Lenders.

     

    Accounting.  Except
      as provided to the contrary herein, all accounting terms used herein shall
      be
      interpreted and all accounting determinations hereunder shall be made in
      accordance with Agreement Accounting Principles.  If any changes in
      generally accepted accounting principles are hereafter required or permitted
      and
      are adopted by the Borrower or any of its Subsidiaries with the agreement of
      its
      independent certified public accountants and such changes result in a change
      in
      the method of calculation of any of the financial covenants, tests, restrictions
      or standards herein or in the related definitions or terms used therein
      (“Accounting Changes”), the parties hereto agree, at the Borrower’s request, to
      enter into negotiations, in good faith, in order to amend such provisions in
      a
      credit neutral manner so as to reflect equitably such changes with the desired
      result that the criteria for evaluating the Borrower’s and its Subsidiaries’
financial condition shall be the same after such changes as if such changes
      had
      not been made; provided, however, until such provisions are
      amended in a manner reasonably satisfactory to the Administrative Agent and
      the
      Required Lenders, no Accounting Change shall be given effect in such
      calculations and all financial statements and reports required to be delivered
      hereunder shall be prepared in accordance with Agreement Accounting Principles
      without taking into account such Accounting Changes.  In the event
      such amendment is entered into, all references in this Agreement to Agreement
      Accounting Principles shall mean generally accepted accounting principles as
      of
      the date of such amendment.

     

    Severability
      of
      Provisions.  Any provision in any Loan Document that is held to be
      inoperative, unenforceable, or invalid in any jurisdiction shall, as to that
      jurisdiction, be inoperative, unenforceable, or invalid without affecting the
      remaining provisions in that jurisdiction or the operation, enforceability,
      or
      validity of that provision in any other jurisdiction, and to this end the
      provisions of all Loan Documents are declared to be severable.

     

    Nonliability
      of
      Lenders.  The relationship between the Borrower and the Lenders
      and the Administrative Agent shall be solely that of borrower and
      lender.  Neither the Administrative Agent nor any Lender shall have
      any fiduciary responsibilities to the Borrower.  Neither the
      Administrative Agent nor any Lender undertakes any responsibility to the
      Borrower to review or inform the Borrower of any matter in connection with
      any
      phase of the Borrower’s business or operations.

     

    GOVERNING
      LAW.  THE ADMINISTRATIVE AGENT ACCEPTS THIS AGREEMENT, ON BEHALF
      OF ITSELF AND THE LENDERS, AT NEW YORK, NEW YORK BY ACKNOWLEDGING AND AGREEING
      TO IT THERE.  ANY DISPUTE BETWEEN THE BORROWER AND THE ADMINISTRATIVE
      AGENT, ANY LENDER OR ANY OTHER HOLDER OF OBLIGATIONS ARISING OUT OF, CONNECTED
      WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM
      IN
      CONNECTION WITH, THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, AND WHETHER
      ARISING IN CONTRACT, TORT, EQUITY, OR OTHERWISE, SHALL BE GOVERNED IN ACCORDANCE
      WITH THE LAWS OF THE STATE OF NEW YORK, BUT GIVING EFFECT TO FEDERAL LAWS
      APPLICABLE TO NATIONAL BANKS.

     

    CONSENT
      TO
      JURISDICTION; JURY TRIAL.

     

    EXCLUSIVE
      JURISDICTION.  EXCEPT AS PROVIDED IN SUBSECTION (B), EACH
      OF THE PARTIES HERETO AGREES THAT ALL DISPUTES AMONG THEM ARISING OUT OF,
      CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG
      THEM IN CONNECTION WITH, THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS
      WHETHER ARISING IN CONTRACT, TORT, EQUITY, OR OTHERWISE, SHALL BE RESOLVED
      EXCLUSIVELY BY STATE OR FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK, BUT THE
      PARTIES HERETO ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE
      HEARD BY A COURT LOCATED OUTSIDE OF NEW YORK, NEW YORK.  EACH OF THE
      PARTIES HERETO WAIVES IN ALL DISPUTES BROUGHT PURSUANT TO THIS SUBSECTION
      (A) ANY OBJECTION THAT IT MAY HAVE TO THE LOCATION OF THE COURT CONSIDERING
      THE DISPUTE.

     

    OTHER
      JURISDICTIONS.  THE BORROWER AGREES THAT THE ADMINISTRATIVE AGENT,
      ANY LENDER OR ANY OTHER HOLDER OF OBLIGATIONS SHALL HAVE THE RIGHT TO PROCEED
      AGAINST THE BORROWER OR ITS PROPERTY IN A COURT IN ANY LOCATION TO ENABLE SUCH
      PERSON TO (1) OBTAIN PERSONAL JURISDICTION OVER THE BORROWER OR (2) IN ORDER
      TO
      ENFORCE A JUDGMENT OR OTHER COURT ORDER ENTERED IN FAVOR OF SUCH
      PERSON.  THE BORROWER AGREES THAT IT WILL NOT ASSERT ANY PERMISSIVE
      COUNTERCLAIMS IN ANY PROCEEDING BROUGHT BY SUCH PERSON TO REALIZE ON ANY
      SECURITY FOR THE OBLIGATIONS OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER
      IN
      FAVOR OF SUCH PERSON BUT SHALL ONLY BE PERMITTED TO BRING ANY SUCH PERMISSIVE
      COUNTERCLAIM IN A PROCEEDING BROUGHT PURSUANT TO CLAUSE
      (A).  THE BORROWER WAIVES ANY OBJECTION THAT IT MAY HAVE TO THE
      LOCATION OF THE COURT IN WHICH SUCH PERSON HAS COMMENCED A PROCEEDING DESCRIBED
      IN THIS SUBSECTION (B).

     

    VENUE.  THE
      BORROWER IRREVOCABLY WAIVES ANY OBJECTION (INCLUDING, WITHOUT LIMITATION, ANY
      OBJECTION OF THE LAYING OF VENUE OR BASED ON THE GROUNDS OF
FORUMNONCONVENIENS) WHICH IT MAY NOW OR HEREAFTER HAVE TO
      THE BRINGING OF ANY SUCH ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT
      OR
      ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION
      HEREWITH IN ANY JURISDICTION SET FORTH ABOVE.

     

    WAIVER
      OF JURY
      TRIAL.  EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY RIGHT TO
      HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT,
      TORT, OR OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED TO OR INCIDENTAL
      TO
      THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AGREEMENT OR
      ANY
      OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION
      HEREWITH.  EACH OF THE PARTIES HERETO AGREES AND CONSENTS THAT ANY
      SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
      WITHOUT A JURY AND THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR
      A
      COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF
      THE
      PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

     

    ADVICE
      OF
      COUNSEL.  EACH OF THE PARTIES REPRESENTS TO EACH OTHER PARTY
      HERETO THAT IT HAS DISCUSSED THIS AGREEMENT AND, SPECIFICALLY, THE PROVISIONS
      OF
SECTION 10.7 AND THIS SECTION 10.13, WITH ITS
      COUNSEL.

     

    Subordination
      of
      Intercompany Indebtedness.  The Borrower agrees that any and all
      claims of the Borrower against any of its Subsidiaries that is a Subsidiary
      Guarantor with respect to any “Intercompany Indebtedness” (as hereinafter
      defined), any endorser, obligor or any other guarantor of all or any part of
      the
      Obligations, or against any of its properties shall be subordinate and subject
      in right of payment to the prior payment, in full and in cash, of all
      Obligations; provided that, and not in contravention of the foregoing, so
      long as no Default has occurred and is continuing the Borrower may make loans
      to
      and receive payments in the ordinary course with respect to such Intercompany
      Indebtedness from each such Subsidiary Guarantor to the extent permitted by
      the
      terms of this Agreement and the other Loan Documents.  Notwithstanding
      any right of the Borrower to ask, demand, sue for, take or receive any payment
      from any Subsidiary Guarantor, all rights, liens and security interests of
      the
      Borrower, whether now or hereafter arising and howsoever existing, in any assets
      of any Subsidiary Guarantor shall be and are subordinated to the rights of
      the
      Holders of Obligations and the Administrative Agent in those
      assets.  The Borrower shall have no right to possession of any such
      asset or to foreclose upon any such asset, whether by judicial action or
      otherwise, unless and until all of the Obligations (other than contingent
      indemnity obligations) shall have been fully paid and satisfied (in cash) and
      all financing arrangements pursuant to any Loan Document among the Borrower
      and
      the Holders of Obligations (or any affiliate thereof) have been
      terminated.  If all or any part of the assets of any Subsidiary
      Guarantor, or the proceeds thereof, are subject to any distribution, division
      or
      application to the creditors of such Subsidiary Guarantor, whether partial
      or
      complete, voluntary or involuntary, and whether by reason of liquidation,
      bankruptcy, arrangement, receivership, assignment for the benefit of creditors
      or any other action or proceeding, or if the business of any such Subsidiary
      Guarantor is dissolved or if substantially all of the assets of any such
      Subsidiary Guarantor are sold, then, and in any such event (such events being
      herein referred to as an “Insolvency Event”), any payment or distribution of any
      kind or character, either in cash, securities or other property, which shall
      be
      payable or deliverable upon or with respect to any indebtedness of any
      Subsidiary Guarantor to the Borrower (“Intercompany Indebtedness”) shall be paid
      or delivered directly to the Administrative Agent for application on any of
      the
      Obligations, due or to become due, until such Obligations (other than contingent
      indemnity obligations) shall have first been fully paid and satisfied (in
      cash).  Should any payment, distribution, security or instrument or
      proceeds thereof be received by the Borrower upon or with respect to the
      Intercompany Indebtedness after an Insolvency Event prior to the satisfaction
      of
      all of the Obligations (other than contingent indemnity obligations) and the
      termination of all financing arrangements pursuant to any Loan Document among
      the Borrower and the holders of Obligations (and their affiliates), the Borrower
      shall receive and hold the same in trust, as trustee, for the benefit of the
      Holders of Obligations and shall forthwith deliver the same to the
      Administrative Agent, for the benefit of such Persons, in precisely the form
      received (except for the endorsement or assignment of the Borrower where
      necessary), for application to any of the Obligations, due or not due, and,
      until so delivered, the same shall be held in trust by the Borrower as the
      property of the Holders of Obligations.  If the Borrower fails to make
      any such endorsement or assignment to the Administrative Agent, the
      Administrative Agent or any of its officers or employees are irrevocably
      authorized to make the same.  The Borrower agrees that until the
      Obligations (other than the contingent indemnity obligations) have been paid
      in
      full (in cash) and satisfied and all financing arrangements pursuant to any
      Loan
      Document among the Borrower and the Holders of Obligations (and their
      affiliates) have been terminated, the Borrower will not assign or transfer
      to
      any Person (other than the Administrative Agent) any claim the Borrower has
      or
      may have against any Subsidiary Guarantor.

     

    THE
      ADMINISTRATIVE AGENT

     

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

     

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

     

    Action
      by
      Administrative Agent and Liability of Administrative Agent.  The
      Administrative Agent shall not have any duties or obligations except those
      expressly set forth herein.  Without limiting the generality of the
      foregoing, (a) the Administrative Agent shall not be subject to any fiduciary
      or
      other implied duties, regardless of whether a Default has occurred and is
      continuing, (b) the Administrative Agent shall not have any duty to take any
      discretionary action or exercise any discretionary powers, except discretionary
      rights and powers expressly contemplated hereby that the Administrative Agent
      is
      required to exercise in writing as directed by the Required Lenders (or such
      other number or percentage of the Lenders as shall be necessary under the
      circumstances as provided in Section 9.3), and (c) except as expressly
      set forth herein, the Administrative Agent shall not have any duty to disclose,
      and shall not be liable for the failure to disclose, any information relating
      to
      the Borrower or any of its Subsidiaries that is communicated to or obtained
      by
      the bank serving as Administrative Agent or any of its Affiliates in any
      capacity.  The Administrative Agent shall not be liable for any action
      taken or not taken by it with the consent or at the request of the Required
      Lenders (or such other number or percentage of the Lenders as shall be necessary
      under the circumstances as provided in Section 9.3) or in the absence of
      its own gross negligence or willful misconduct.  The Administrative
      Agent shall be deemed not to have knowledge of any Default unless and until
      written notice thereof is given to the Administrative Agent by the Borrower
      or a
      Lender, and the Administrative Agent shall not be responsible for or have any
      duty to ascertain or inquire into (i) any statement, warranty or representation
      made in or in connection with this Agreement, (ii) the contents of any
      certificate, report or other document delivered hereunder or in connection
      herewith, (iii) the performance or observance of any of the covenants,
      agreements or other terms or conditions set forth herein, (iv) the validity,
      enforceability, effectiveness or genuineness of this Agreement or any other
      agreement, instrument or document, or (v) the satisfaction of any condition
      set
      forth in Article V or elsewhere herein, other than to confirm receipt of items
      expressly required to be delivered to the Administrative Agent.

     

    Reliance
      on
      Documents and Counsel.  The Administrative Agent shall be entitled
      to rely upon, and shall not incur any liability for relying upon, any notice,
      request, certificate, consent, statement, instrument, document or other writing
      believed by it to be genuine and to have been signed or sent by the proper
      Person.  The Administrative Agent also may rely upon any statement
      made to it orally or by telephone and believed by it to be made by the proper
      Person, and shall not incur any liability for relying thereon.  The
      Administrative Agent may consult with legal counsel (who may be counsel for
      the
      Borrower), independent accountants and other experts selected by it, and shall
      not be liable for any action taken or not taken by it in accordance with the
      advice of any such counsel, accountants or experts.

     

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

     

    Indemnification.  To
      the extent that the Borrower fails to pay any amount required to be paid by
      it
      to the Administrative Agent or the Arrangers under any of the Loan Documents,
      including under Section 10.7(A) or (B) of this Agreement, each
      Lender severally agrees to pay to the Administrative Agent or the Arrangers,
      as
      the case may be, ratably in accordance with such Lender’s Pro Rata Share
      (determined as of the time that the applicable unreimbursed expense or indemnity
      payment is sought) of such unpaid amount; provided, that the unreimbursed
      expense or indemnified loss, claim, damage, liability or related expense, as
      the
      case may be, was incurred by or asserted against the Administrative Agent or
      the
      Arrangers, in their respective capacity as such.

     

    Successor
      Agent.  Subject to the appointment and acceptance of a successor
      Administrative Agent as provided in this paragraph, the Administrative Agent
      may
      resign at any time by notifying the Lenders and the Borrower.  Upon
      any such resignation, the Required Lenders shall have the right, in consultation
      with the Borrower, to appoint a successor.  If no successor shall have
      been so appointed by the Required Lenders and shall have accepted such
      appointment within thirty (30) days after the retiring Administrative Agent
      gives notice of its resignation, then the retiring Administrative Agent may,
      on
      behalf of the Lenders, appoint a successor Administrative Agent which shall
      be a
      bank with an office in New York, New York, or an Affiliate of any such
      bank.  Upon the acceptance of its appointment as Administrative Agent
      hereunder by a successor, such successor shall succeed to and become vested
      with
      all the rights, powers, privileges and duties of the retiring Administrative
      Agent, and the retiring Administrative Agent shall be discharged from its duties
      and obligations hereunder.  The fees payable by the Borrower to a
      successor Administrative Agent shall be the same as those payable to its
      predecessor unless otherwise agreed between the Borrower and such
      successor.  After the Administrative Agent’s resignation hereunder,
      the provisions of this Article and Section 10.7 shall continue in effect
      for the benefit of such retiring Administrative Agent, its sub-agents and their
      respective Related Parties in respect of any actions taken or omitted to be
      taken by any of them while it was acting as Administrative Agent.

     

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

     

    Administrative
      Agent, Arrangers, Syndication Agent, Documentation Agent.  None of
      the Persons identified on the cover page to this Agreement, the signature pages
      to this Agreement or otherwise in this Agreement as a “Syndication Agent,”
“Documentation Agent” or “Arranger” shall have any right, power, obligation,
      liability, responsibility or duty under this Agreement other than if such Person
      is a Lender, those applicable to all Lenders as such.  Without
      limiting the foregoing, none of the Persons identified on the cover page to
      this
      Agreement, the signature pages to this Agreement or otherwise in this Agreement
      as a “Syndication Agent,” “Documentation Agent” or “Arranger” shall have or be
      deemed to have any fiduciary duty to or fiduciary relationship with any
      Lender.  In addition to the agreement set forth in Section
      11.8, each of the Lenders acknowledges that it has not relied, and will not
      rely, on any of the Persons so identified in deciding to enter into this
      Agreement or in taking or not taking action hereunder.

     

    SETOFF;
      RATABLE PAYMENTS

     

    Setoff.  In
      addition to, and without limitation of, any rights of the Lenders under
      applicable law, if any Default occurs and is continuing, any indebtedness from
      any Lender to the Borrower (including all account balances, whether provisional
      or final and whether or not collected or available) may be offset and applied
      toward the payment of the Obligations owing to such Lender, whether or not
      the
      Obligations, or any part hereof, shall then be due.

     

    Ratable
      Payments.  If any Lender, whether by setoff or otherwise, has
      payment made to it upon its Loans (other than payments received pursuant to
      Sections 4.1, 4.2 or 4.4) in a greater proportion than that
      received by any other Lender, such Lender agrees, promptly upon demand, to
      purchase a portion of the Loans held by the other Lenders so that after such
      purchase each Lender will hold its ratable proportion of Loans.  If
      any Lender, whether in connection with setoff or amounts which might be subject
      to setoff or otherwise, receives collateral or other protection for its
      Obligation or such amounts which may be subject to setoff, such Lender agrees,
      promptly upon demand, to take such action necessary such that all Lenders share
      in the benefits of such collateral ratably in proportion to the obligations
      owing to them.  In case any such payment is disturbed by legal
      process, or otherwise, appropriate further adjustments shall be
      made.

     

    Application
      of
      Payments.  Subject to the provisions of Section 9.2, the
      Administrative Agent shall, unless otherwise specified at the direction of
      the
      Required Lenders which direction shall be consistent with the last sentence
      of
      this Section 12.3, apply all payments and prepayments in respect of any
      Obligations received after the occurrence and during the continuance of a
      Default or Unmatured Default in the following order:

     

    first,
      to pay
      interest on and then principal of any portion of the Loans which the
      Administrative Agent may have advanced on behalf of any Lender for which the
      Administrative Agent has not then been reimbursed by such Lender or the
      Borrower;

     

    second,
      to pay
      interest on and then principal of any advance made under Section 10.3 for
      which the Administrative Agent has not then been paid by the Borrower or
      reimbursed by the Lenders;

     

    third,
      to pay
      Obligations in respect of any fees, expenses, reimbursements or indemnities
      then
      due to the Administrative Agent;

     

    fourth,
      to pay
      Obligations in respect of any fees, expenses, reimbursements or indemnities
      then
      due to the Lenders;

     

    fifth,
      to pay
      interest due in respect of Loans;

     

    sixth,
      to the
      ratable payment or prepayment of principal outstanding on Loans;
      and

     

    seventh,
      to the
      ratable payment of all other Obligations.

     

    Unless
      otherwise
      designated (which designation shall only be applicable prior to the occurrence
      of a Default) by the Borrower, all principal payments in respect of Loans shall
      be applied to the outstanding Loans first, to repay outstanding Floating Rate
      Loans, and then to repay outstanding Eurodollar Rate Loans with those
      Eurodollar Rate Loans which have earlier expiring Interest Periods being repaid
      prior to those which have later expiring Interest Periods.  The order
      of priority set forth in this Section 12.3 and the related provisions of
      this Agreement are set forth solely to determine the rights and priorities
      of
      the Administrative Agent and the Lenders as among themselves.  The
      order of priority set forth in clauses (D) through (G) of this
Section 12.3 may at any time and from time to time be changed by
      the
      Required Lenders without necessity of notice to or consent of or approval by
      the
      Borrower, or any other Person.  The order of priority set forth in
clauses (A) through (C) of this Section 12.3 may be changed
      only with the prior written consent of the Administrative Agent.

    Relations
      Among
      Lenders.

     

    Except
      with respect
      to the exercise of set-off rights of any Lender in accordance with Section
      12.1, the proceeds of which are applied in accordance with this Agreement,
      and except as set forth in the following sentence, each Lender agrees that
      it
      will not take any action, nor institute any actions or proceedings, against
      the
      Borrower or any other obligor hereunder or with respect to any Loan Document,
      without the prior written consent of the Required Lenders or, as may be provided
      in this Agreement or the other Loan Documents, at the direction of the
      Administrative Agent.

     

    The
      Lenders are not
      partners or co-venturers, and no Lender shall be liable for the acts or
      omissions of, or (except as otherwise set forth herein in case of the
      Administrative Agent) authorized to act for, any other Lender.  The
      Administrative Agent shall have the exclusive right on behalf of the Lenders,
      at
      the direction of the Required Lenders, to enforce on the payment of the
      principal of and interest on any Loan after the date such principal or interest
      has become due and payable pursuant to the terms of this Agreement.

     

    Representations
      and Covenants Among Lenders.  Each Lender represents and covenants
      for the benefit of all other Lenders and the Administrative Agent that such
      Lender is not satisfying and shall not satisfy any of its obligations pursuant
      to this Agreement with any assets considered for any purposes of ERISA or
      Section 4975 of the Code to be assets of or on behalf of any “plan” as defined
      in section 3(3) of ERISA or section 4975 of the Code, regardless of whether
      subject to ERISA or Section 4975 of the Code.

     

    BENEFIT
      OF AGREEMENT; ASSIGNMENTS;
      PARTICIPATIONS

     

    Successors
      and
      Assigns.  The provisions of this Agreement shall be binding upon
      and inure to the benefit of the parties hereto and their respective successors
      and assigns permitted hereby, except that (i) the Borrower may not assign or
      otherwise transfer any of its rights or obligations hereunder without the prior
      written consent of each Lender (and any attempted assignment or transfer by
      the
      Borrower without such consent shall be null and void) and (ii) no Lender may
      assign or otherwise transfer its rights or obligations hereunder except in
      accordance with this Article XIII.  Nothing in this Agreement,
      expressed or implied, shall be construed to confer upon any Person (other than
      the parties hereto, their respective successors and assigns permitted hereby,
      Participants (to the extent provided in Section 13.2) and, to the extent
      expressly contemplated hereby, the Related Parties of the Administrative Agent
      and the Lenders) any legal or equitable right, remedy or claim under or by
      reason of this Agreement.  The Administrative Agent may treat the
      Person which made any Loan or which holds any note as the owner thereof for
      all
      purposes hereof unless and until such Person complies with Section 13.3;
provided,however, that the Administrative Agent
      may in its discretion (but shall not be required to) follow instructions from
      the Person which made any Loan or which holds any note to direct payments
      relating to such Loan or note to another Person.  Any assignee of the
      rights to any Loan or any note agrees by acceptance of such assignment to be
      bound by all the terms and provisions of the Loan Documents.  Any
      request, authority or consent of any Person, who at the time of making such
      request or giving such authority or consent is the owner of the rights to any
      Loan (whether or not a note has been issued in evidence thereof), shall be
      conclusive and binding on any subsequent holder or assignee of the rights to
      such Loan.

     

    Participations.

     

    Permitted
      Participants; Effect.  Any Lender may, without the consent of the
      Borrower or the Administrative Agent sell participations to one or more banks
      or
      other entities (a “Participant”) in all or a portion of such Lender’s
      rights and obligations under this Agreement (including all or a portion of
      its
      Commitment and the Loans owing to it); provided that (i) such Lender’s
      obligations under this Agreement shall remain unchanged, (ii) such Lender shall
      remain solely responsible to the other parties hereto for the performance of
      such obligations and (iii) the Borrower, the Administrative Agent and the other
      Lenders shall continue to deal solely and directly with such Lender in
      connection with such Lender’s rights and obligations under this
      Agreement.  Any agreement or instrument pursuant to which a Lender
      sells such a participation shall provide that such Lender shall retain the
      sole
      right to enforce this Agreement and to approve any amendment, modification
      or
      waiver of any provision of this Agreement; provided that such agreement
      or instrument may provide that such Lender will not, without the consent of
      the
      Participant, agree to any amendment, modification or waiver described in the
      proviso to Section 9.3 that adversely affects such
      Participant.  Subject to paragraph (B) of this Section, the Borrower
      agrees that each Participant shall be entitled to the benefits of Sections
      4.1, 4.2, 4.3, 4.4 and 4.5 to the same extent as
      if it were a Lender and had acquired its interest by assignment pursuant to
      Section 13.3.  To the extent permitted by law, each Participant
      also shall be entitled to the benefits of Section 12.1 as though it were
      a Lender, provided such Participant agrees to be subject to Section 12.2
      as though it were a Lender.

     

    Limitation
      of
      Participant Rights.  A Participant shall not be entitled to
      receive any greater payment under Sections 4.1, 4.2 or 4.5
      than the applicable Lender would have been entitled to receive with respect
      to
      the participation sold to such Participant, unless the sale of the participation
      to such Participant is made with the Borrower’s prior written
      consent.  A Participant that would be a Non-U.S. Lender if it were a
      Lender shall not be entitled to the benefits of Section 4.5 unless the
      Borrower is notified of the participation sold to such Participant and such
      Participant agrees, for the benefit of the Borrower, to comply with Section
      4.5 as though it were a Lender.

     

    Assignments.

     

    Consents.  Subject
      to the conditions set forth in paragraph (B) below, any Lender may assign to
      one
      or more assignees (“Purchasers”) all or a portion of its rights and obligations
      under this Agreement (including all or a portion of its Commitment and the
      Loans
      at the time owing to it) with the prior written consent (such consent not to
      be
      unreasonably withheld) of: (i) the Borrower; provided that no consent of
      the Borrower shall be required for an assignment to a Purchaser that is a
      Lender, an Affiliate of a Lender or an Approved Fund or, if a Default has
      occurred and is continuing, any other assignee; and (ii) the Administrative
      Agent.

     

    Conditions.  Assignments
      shall be subject to the following additional conditions:

     

    except
      in the case
      of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund
      or an
      assignment of the entire remaining amount of the assigning Lender’s Commitment
      or Loans, the amount of the Commitment or Loans of the assigning Lender subject
      to each such assignment (determined as of the date the Assignment and Assumption
      with respect to such assignment is delivered to the Administrative Agent) shall
      not be less than $5,000,000 unless each of the Borrower and the Administrative
      Agent otherwise consent; provided that no such consent of the Borrower
      shall be required if an Event of Default has occurred and is
      continuing;

     

    each
      partial
      assignment shall be made as an assignment of a proportionate part of all the
      assigning Lender’s rights and obligations under this Agreement, provided that
      this clause shall not be construed to prohibit the assignment of a proportionate
      part of all the assigning Lender’s rights and obligations in respect of its
      Commitments or Loans;

     

    the
      parties to each
      assignment shall execute and deliver to the Administrative Agent an Assignment
      and Assumption, together with a processing and recordation fee of $3,500;
      and

     

    the
      assignee, if it
      shall not be a Lender, shall deliver to the Administrative Agent an
      Administrative Questionnaire in which the assignee designates one or more credit
      contacts to whom all syndicate-level information (which may contain material
      non-public information about the Borrower and its affiliates, the Subsidiary
      Guarantors and their related parties or their respective securities) will be
      made available and who may receive such information in accordance with the
      assignee’s compliance procedures and applicable laws, including Federal and
      state securities laws.

     

    Effect;
      Effective Date.  Subject to acceptance and recording thereof
      pursuant to paragraph (D) of this Section, from and after the effective date
      specified in each Assignment and Assumption the assignee thereunder shall be
      a
      party hereto and, to the extent of the interest assigned by such Assignment
      and
      Assumption, have the rights and obligations of a Lender under this Agreement,
      and the assigning Lender thereunder shall, to the extent of the interest
      assigned by such Assignment and Assumption, be released from its obligations
      under this Agreement (and, in the case of an Assignment and Assumption covering
      all of the assigning Lender’s rights and obligations under this Agreement, such
      Lender shall cease to be a party hereto but shall continue to be entitled to
      the
      benefits of Sections 4.1, 4.2, 4.3, 4.4, 4.5
      and 10.7).  Any assignment or transfer by a Lender of rights or
      obligations under this Agreement that does not comply with this Section
      13.3 shall be treated for purposes of this Agreement as a sale by such
      Lender of a participation in such rights and obligations in accordance with
      Section 13.2.

     

    The
      Register.  The Administrative Agent, acting for this purpose as an
      agent of the Borrower, shall maintain at one of its offices a copy of each
      Assignment and Assumption delivered to it and a register for the recordation
      of
      the names and addresses of the Lenders, and the Commitment of, and principal
      amount of the Loans owing to, each Lender pursuant to the terms hereof from
      time
      to time (the “Register”).  The entries in the Register shall be
      conclusive, and the Borrower, the Administrative Agent and the Lenders may
      treat
      each Person whose name is recorded in the Register pursuant to the terms hereof
      as a Lender hereunder for all purposes of this Agreement, notwithstanding notice
      to the contrary.  The Register shall be available for inspection by
      the Borrower and any Lender, at any reasonable time and from time to time upon
      reasonable prior notice.

     

    Recording.  Upon
      its receipt of a duly completed Assignment and Assumption executed by an
      assigning Lender and an assignee, the assignee’s completed Administrative
      Questionnaire (unless the assignee shall already be a Lender hereunder), the
      processing and recordation fee referred to in this Section 13.3 and any
      written consent to such assignment required by this Section 13.3, the
      Administrative Agent shall accept such Assignment and Assumption and record
      the
      information contained therein in the Register; provided that if either
      the assigning Lender or the assignee shall have failed to make any payment
      required to be made by it pursuant to Sections 2.2(D), 2.17,
3.6, 3.7 or 11.6, the Administrative Agent shall have
      no
      obligation to accept such Assignment and Assumption and record the information
      therein in the Register unless and until such payment shall have been made
      in
      full, together with all accrued interest thereon.  No assignment shall
      be effective for purposes of this Agreement unless it has been recorded in
      the
      Register as provided in this paragraph.

     

    Pledge
      to a
      Federal Reserve Bank.  Any Lender may at any time pledge or assign
      a security interest in all or any portion of its rights under this Agreement
      to
      secure obligations of such Lender, including without limitation any pledge
      or
      assignment to secure obligations to a Federal Reserve Bank, and this Section
      shall not apply to any such pledge or assignment of a security interest;
      provided that no such pledge or assignment of a security interest shall release
      a Lender from any of its obligations hereunder or substitute any such pledgee
      or
      assignee for such Lender as a party hereto.

     

    Confidentiality.   Each
      Agent and Lender agrees to maintain the confidentiality of the Information
      (as
      defined below), except that Information may be disclosed (a) to its and its
      Affiliates’ directors, officers, employees and agents, including accountants,
      legal counsel and other advisors (it being understood that the Persons to whom
      such disclosure is made will be informed of the confidential nature of such
      Information and instructed to keep such Information confidential), (b) to the
      extent requested by any regulatory authority, (c) to the extent required by
      Requirement of Law or by any subpoena or similar legal process, (d) to any
      other
      party to this Agreement, (e) in connection with the exercise of any remedies
      hereunder or any suit, action or proceeding relating to this Agreement or any
      other Loan Document or the enforcement of rights hereunder or thereunder, (f)
      subject to an agreement containing provisions substantially the same as those
      of
      this Section, to (i) any assignee of or Participant in, or any prospective
      assignee of or Participant in, any of its rights or obligations under this
      Agreement or (ii) any actual or prospective counterparty (or its advisors)
      to
      any swap or derivative transaction relating to the Borrower, its Subsidiaries
      and their obligations, (g) with the consent of the Borrower or (h) to the extent
      such Information (i) becomes publicly available other than as a result of a
      breach of this Section or (ii) becomes available to any Agent or Lender on
      a
      non-confidential basis from a source other than the Borrower.  For the
      purposes of this Section, “Information” means all information received from the
      Borrower relating to the Borrower or its business, other than any such
      information that is available to any Agent or Lender on a non-confidential
      basis
      prior to disclosure by the Borrower; provided that, in the case of
      information received from the Borrower after the date hereof, such information
      is clearly identified at the time of delivery as confidential.  Any
      Person required to maintain the confidentiality of Information as provided
      in
      this Section shall be considered to have complied with its obligation to do
      so
      if such Person has exercised the same degree of care to maintain the
      confidentiality of such Information as such Person would accord to its own
      confidential information.

     

    EACH
      LENDER ACKNOWLEDGES THAT INFORMATION AS
      DEFINED IN SECTION 13.4 FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY
      INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE BORROWER
      AND  ITS RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS
      THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL
      NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL NON-PUBLIC
      INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW, INCLUDING
      FEDERAL AND STATE SECURITIES LAWS.

    ALL
      INFORMATION, INCLUDING REQUESTS FOR WAIVERS
      AND AMENDMENTS, FURNISHED BY THE BORROWER OR THE ADMINISTRATIVE AGENT PURSUANT
      TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL
      INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE
      BORROWER AND ITS AFFILIATES, THE SUBSIDIARY GUARANTORS (AND THEIR RELATED
      PARTIES OR THEIR RESPECTIVE SECURITIES) AND ITS
      SECURITIES.  ACCORDINGLY, EACH LENDER REPRESENTS TO THE BORROWER AND
      THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE
      QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY CONTAIN
      MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES
      AND
      APPLICABLE LAW.

    

    NOTICES

     

    Giving
      Notice.

     

    Except
      in the case
      of notices and other communications expressly permitted to be given by telephone
      (and subject to paragraph (b) below), all notices and other communications
      provided for herein shall be in writing and shall be delivered by hand or
      overnight courier service, mailed by certified or registered mail or sent by
      telecopy, as follows:

     

    if
      to the Borrower,
      to it at 533 Maryville University Drive, St. Louis, MO 63141, Attention of
      William C. Fox, Vice President and Treasurer (Telecopy No. (314)
      985-2220);

     

    if
      to the
      Administrative Agent, to it at 270 Park Avenue, New York, NY 10017, Attention
      of
      Anthony White (Telecopy No. (212) 270-3279), with a copy to 131 S. Dearborn
      Street, Chicago, IL 60603, Attention of William Oleferchik (Telecopy No. (312)
      325-3093); and

     

    if
      to any other
      Lender, to it at its address (or telecopy number) set forth below its signature
      hereto.

     

    Notices
      and other
      communications to the Lenders hereunder may be delivered or furnished by
      electronic communications pursuant to procedures approved by the Administrative
      Agent; provided that the foregoing shall not apply to notices pursuant to
Article II unless otherwise agreed by the Administrative Agent and the
      applicable Lender.  The Administrative Agent or the Borrower may, in
      its discretion, agree to accept notices and other communications to it hereunder
      by electronic communications pursuant to procedures approved by it; provided
      that approval of such procedures may be limited to particular notices or
      communications.

     

    Any
      party hereto
      may change its address or telecopy number for notices and other communications
      hereunder by notice to the other parties hereto.  All notices and
      other communications given to any party hereto in accordance with the provisions
      of this Agreement shall be deemed to have been given on the date of
      receipt.

     

    Change
      of
      Address.  The Borrower, the Administrative Agent and any Lender
      may each change the address for service of notice upon it by a notice in writing
      to the other parties hereto.

     

    COUNTERPARTS

     

    This
      Agreement may
      be executed in any number of counterparts, all of which taken together shall
      constitute one agreement, and any of the parties hereto may execute this
      Agreement by signing any such counterpart.  This Agreement shall be
      effective on the Closing Date when it has been executed by the Borrower, the
      Agents and the Lenders, and each other condition to the Closing Date set forth
      in Section 5.2 has been satisfied.

     

    USA
      PATRIOT ACT

     

    Each
      Lender hereby
      notifies the Borrower that pursuant to the requirements of the USA Patriot
      Act
      (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it
      is required to obtain, verify and record information that identifies the
      Borrower, which information includes the name and address of the Borrower and
      other information that will allow such Lender to identify the Borrower in
      accordance with the Act.

     

    [Remainder
      of This
      Page Intentionally Blank]

     

    IN
      WITNESS WHEREOF,
      the Borrower, the Lenders and the Administrative Agent have executed this
      Agreement as of the date first above written.

     

    
      	 	
              ENERGIZER
                HOLDINGS, INC., as the Borrower

               

            
	 	 
	 	
              By:

            	 	 
	 	
              Name:

            
	 	
              Title:

            
	 	 

    

    

    
      	 	
              JPMORGAN
                CHASE BANK, N.A., as Administrative Agent and as a Lender

               

            
	 	 
	 	
              By:

            	 	 	 
	 	
              Name:

            
	 	
              Title:

            

    

    

    
      	 	
              BANK
                OF
                AMERICA, N.A., as Syndication Agent and as a Lender

            
	 	 
	 	
              By:

            	 	 	 
	 	
              Name:

            
	 	
              Title:

            
	 	 

    

    

    

    
      	 	
              CITIBANK,
                N.A., as Documentation Agent and as a Lender

            
	 	 
	 	
              By:

            	 	 	 
	 	
              Name:

            
	 	
              Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]