Document:

Exhibit 10.18 Summary of Compensation Arrangement for Stoney M. Stubbs, Jr.

     

    EXHIBIT
      10.18

    SUMMARY
      OF COMPENSATION ARRANGEMENTS 

    WITH
      STONEY M. STUBBS, JR.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT 10.18

    Compensation
      Arrangements for Stoney M. Stubbs, Jr.

    January
      1, 2004

    

    

    The
      following is a summary of the compensation arrangement effective January 1,
      2004, for Stoney M. Stubbs, Jr. in his capacity as Chairman, President and
      Chief
      Executive Officer of the Company.

    

    Annual
      Base Salary.
      $382,000

    

    Annual
      and Long-Term Incentive Compensation Plans.
      Participation in the Company’s Incentive Bonus Plan, the 2005 Stock Incentive
      Plan and the 2005 Executive Bonus and Restricted Stock Plan.

    

    Benefit
      Plans and Other Arrangements.
      Mr.
      Stubbs is eligible to participate in the Company’s broad-based programs
      including health, disability and life insurance programs, the Frozen Food
      Express Industries, Inc. 401 (k) Savings Plan, and the FFE Transportation
      Services, Inc. 401(k) Wrap Plan, He is also eligible to participate in the
      Key
      Employee Supplemental Medical Plan.

    

    Change
      in Control Agreements.
      Mr.
      Stubbs and the Company entered into a Change in Control Agreement which entitles
      executive officers severance benefits in the event of a “change in control” of
      the Company during the term of his employment.

    

    Prequisities.
      Mr.
      Stubbs is eligible to participate in certain programs offered by the Company,
      including automobile mileage reimbursement for business purposes plus a $500
      per
      month automobile allowance, and a Christmas bonus equal to one week’s annual
      base salary.Exhibit 10.21 Summary of Compensation Arrangements for Timothy L. Stubbs

    EXHIBIT
      10.21

    SUMMARY
      OF COMPENSATION ARRANGEMENTS WITH

    TIMOTHY
      L. STUBBS

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT 10.21

    Compensation
      Arrangements for Timothy L. Stubbs

    May
      22, 2006

    

    

    The
      following is a summary of the compensation arrangement effective May 22, 2006
      for Timothy L. Stubbs in his capacity as Vice President/General Manager of
      Lisa
      Motor Lines, Inc. a subsidiary of the Company.

    

    Annual
      Base Salary.
      $85,000

    

    Restricted
      Stock Award.
      On May
      17, 2006, Mr. Stubbs was awarded 2,500 shares of restricted stock of the
      Company’s common stock, which vests over a three-year period, one-third on each
      anniversary date.

    

    Annual
      and Long-Term Incentive Compensation Plans.
      Participation in the Company’s Incentive Bonus Plan, the 2005 Stock Incentive
      Plan and the Managers Phantom Stock Plan.

    

    Benefit
      Plans and Other Arrangements.
      Mr.
      Stubbs is eligible to participate in the Company’s broad-based programs
      including health, disability and life insurance programs, the Frozen Food
      Express Industries, Inc. 401 (k) Savings Plan, and the FFE Transportation
      Services, Inc. 401(k) Wrap Plan, He is also eligible to participate in the
      Key
      Employee Supplemental Medical Plan.

    

    

    Prequisities.
      Mr.
      Stubbs is eligible to participate in certain programs offered by the Company,
      including automobile mileage reimbursement for business purposes plus a $300
      per
      month automobile allowance, and a Christmas bonus equal to one week’s annual
      base salary.Exhibit 10.1 Credit Agreement

    
      
        

      

    

    Exhibit
      10.1

     

    CREDIT
      AGREEMENT

     

    dated
      as
      of

     

    June
      9,
      2006

     

    among

     

    SELECT
      COMFORT CORPORATION,

     

    The
      Subsidiary Borrowers Party Hereto,

     

    The
      Lenders Party Hereto,

     

    JPMORGAN
      CHASE BANK, NATIONAL ASSOCIATION,

    as
      Administrative Agent,

     

    and

     

    BANK
      OF
      AMERICA, N.A.,

    as
      Syndication Agent

     

    __________________________

     

    J.P.
      MORGAN SECURITIES INC.,

    as
      Sole
      Bookrunner and Sole Lead Arranger

     

    

    

     

      
        

      

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF
      CONTENTS

                                                                                           Page

      
        	
                 

                ARTICLE
                  I    Definitions

                SECTION
                  1.01. Defined Terms

                SECTION
                  1.02. Classification of Loans and Borrowings

                SECTION
                  1.03. Terms Generally

                SECTION
                  1.04. Accounting Terms; GAAP

                SECTION
                  1.05. Foreign Currency Calculations

                SECTION
                  1.06. Redenomination of Certain Foreign Currencies

                 

                ARTICLE
                  II    The
                  Credits

                SECTION
                  2.01. Commitments

                SECTION
                  2.02. Loans and Borrowings

                SECTION
                  2.03. Requests for Revolving Borrowings

                SECTION
                  2.04. Swingline Loans

                SECTION
                  2.05. Letters of Credit

                SECTION
                  2.06. Funding of Borrowings

                SECTION
                  2.07. Interest Election

                SECTION
                  2.08. Termination, Increase and Reduction of Commitments

                SECTION
                  2.09. Repayment of Loans; Evidence of Debt

                SECTION
                  2.10. Prepayment of Loans

                SECTION
                  2.11. Fees

                SECTION
                  2.12. Interest

                SECTION
                  2.13. Alternate Rate of Interest

                SECTION
                  2.14. Increased Costs

                SECTION
                  2.15. Break Funding Payments

                SECTION
                  2.16. Taxes

                SECTION
                  2.17. Payments Generally; Pro Rata Treatment; Sharing of
                  Set-offs

                SECTION
                  2.18. Mitigation Obligations; Replacement of Lenders

                SECTION
                  2.19. Designation of Subsidiary Borrowers

                SECTION
                  2.20. Additional Reserve Costs

                 

                ARTICLE
                  III    Representations
                  and Warranties

                SECTION
                  3.01. Organization; Powers

                SECTION
                  3.02. Authorization; Enforceability

                SECTION
                  3.03. Governmental Approvals; No Conflicts

                SECTION
                  3.04. Financial Condition; No Material Adverse Change

                SECTION
                  3.05. Properties

                SECTION
                  3.06. Litigation and Environmental Matters

                SECTION
                  3.07. Compliance with Laws and Agreements

                SECTION
                  3.08. Investment and Holding Company Status

                SECTION
                  3.09. Taxes

                SECTION
                  3.10. ERISA

                SECTION
                  3.11. Disclosure

                SECTION
                  3.12. Subsidiaries

                    

              	
                 

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              SECTION
                3.13. Regulation U

               

              ARTICLE
                IV    Conditions

              SECTION
                4.01. Effective Date

              SECTION
                4.02. Each Credit Event

              SECTION
                4.03. Designation of a Subsidiary Borrower

               

               

              ARTICLE
                V    Affirmative
                Covenants

              SECTION
                5.01. Financial Statements; Ratings Change and Other
                Information

              SECTION
                5.02. Notices of Material Events

              SECTION
                5.03. Existence; Conduct of Business

              SECTION
                5.04. Payment of Obligations

              SECTION
                5.05. Maintenance of Properties; Insurance

              SECTION
                5.06. Books and Records; Inspection Rights

              SECTION
                5.07. Compliance with Laws

              SECTION
                5.08. Use of Proceeds and Letters of Credit

              SECTION
                5.09. Additional Guarantors

               

              ARTICLE
                VI    Negative
                Covenants

              SECTION
                6.01. Indebtedness

              SECTION
                6.02. Liens

              SECTION
                6.03. Fundamental Changes

              SECTION
                6.04. Investments, Loans, Advances, Guarantees and
                Acquisitions

              SECTION
                6.05. Swap Agreements

              SECTION
                6.06. Restricted Payments

              SECTION
                6.07. Transactions with Affiliates

              SECTION
                6.08. Restrictive Agreements

              SECTION
                6.09. Minimum Interest Coverage Ratio

              SECTION
                6.10. Maximum Leverage Ratio

              SECTION
                6.11. Fiscal Year

               

               

              ARTICLE
                VII    Events
                of Default

               

              ARTICLE
                VIII    The
                Administrative Agent

               

              ARTICLE
                IX    Miscellaneous

              SECTION
                9.01. Notices

              SECTION
                9.02. Waivers; Amendments

              SECTION
                9.03. Expenses; Indemnity; Damage Waiver

              SECTION
                9.04. Successors and Assigns

              SECTION
                9.05. Survival

              SECTION
                9.06. Counterparts; Integration; Effectiveness

              SECTION
                9.07. Severability

              SECTION
                9.08. Right of Setoff

              SECTION
                9.09. Governing Law; Jurisdiction; Consent to Service of
                Process

               

            	
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              SECTION
                9.10. WAIVER OF JURY TRIAL

              SECTION
                9.11. Headings

              SECTION
                9.12. Confidentiality

              SECTION
                9.13. Interest Rate Limitation

              SECTION
                9.14. USA PATRIOT Act

              SECTION
                9.15. Conversion of Currencies

              SECTION
                9.16. Appointment

               

              ARTICLE
                X    Guaranty

              SECTION
                10.01. Guaranty

              SECTION
                10.02. Waivers

              SECTION
                10.03. Guaranty Absolute

              SECTION
                10.04. Subrogation

              SECTION
                10.05. Limitation on Obligations.

              SECTION
                10.06. Acceleration

              SECTION
                10.07. Termination Date

              SECTION
                10.08. Foreign Currency

               

            	
               

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    SCHEDULES:

     

    Schedule
      1.01 -- Pricing Schedule

    Schedule
      2.01 -- Commitments

    Schedule
      3.06 -- Disclosed Matters

    Schedule
      3.12 -- Subsidiaries

    Schedule
      6.01 -- Existing Indebtedness

    Schedule
      6.02 -- Existing Liens

    Schedule
      6.08 -- Existing Restrictions

    

     

    EXHIBITS:

     

    Exhibit
      A
      -- Form of Assignment and Assumption

    Exhibit
      B
      -- Form of Borrowing Subsidiary Agreement

    Exhibit
      C
      -- Mandatory Cost Rate 

    Exhibit
      D
      -- Form of Borrowing Subsidiary Termination

    

     

    

     

    
      
        iii

      

      
         

        
          

        

      

      
         

      

    

    

    CREDIT
      AGREEMENT dated as of June 9, 2006, among SELECT COMFORT CORPORATION, the
      Subsidiary Borrowers party hereto, the LENDERS party hereto, JPMORGAN CHASE
      BANK, NATIONAL ASSOCIATION, as Administrative Agent and BANK OF AMERICA, N.A.,
      as Syndication Agent.

     

    The
      parties hereto agree as follows:

     

        
      ARTICLE I  

     

    Definitions

     

    SECTION
      1.01.   Defined
      Terms.
      As used
      in this Agreement, the following terms have the meanings specified
      below:

     

    “ABR”,
      when
      used in reference to any Loan or Borrowing, refers to whether such Loan, or
      the
      Loans comprising such Borrowing, are bearing interest at a rate determined
      by
      reference to the Alternate Base Rate.

     

    “Acquired
      Entity or Business”
      means
      either (a) the assets constituting a business, division, facility, product
      line
      or line of business of any Person not already a Subsidiary or (b) 80% or more
      of
      the capital stock of any such Person, which Person shall, as a result of such
      acquisi-tion or merger, either (i) become a Wholly-Owned Subsidiary of the
      Company (or shall be merged with and into the Company or a Subsidiary Guarantor,
      with the Company or such Subsidiary Guarantor being the surviving Person) or
      (ii) become a Controlled Subsidiary.

     

    “Adjusted
      LIBO Rate”
means,
      with respect to any Eurocurrency Borrowing for any Interest Period, an interest
      rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal
      to
      (a) if denominated in Dollars, (i) the LIBO Rate for such Interest Period
      multiplied by (ii) the Statutory Reserve Rate, and (b) if denominated in a
      Foreign Currency, the LIBO Rate for such Interest Period.

     

    “Administrative
      Agent”
means
      JPMorgan, in its capacity as administrative agent for the Lenders
      hereunder.

     

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

     

    “Advance”
means
      any Loan or any Letter of Credit.

     

    “Affiliate”
means,
      with respect to a specified Person, another Person that directly, or indirectly
      through one or more intermediaries, Controls or is Controlled by or is under
      common Control with the Person specified.

     

    “Agreement”
means
      this Credit Agreement, as amended, restated, modified or supplemented from
      time
      to time.

     

    “Agreement
      Currency”
shall
      have the meaning assigned to such term in Section
      9.15(b).

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Alternate
      Base Rate”
means,
      for any day, a rate per annum equal to the greatest of (a) the Prime Rate in
      effect on such day and (b) the Federal Funds Effective Rate in effect on such
      day plus 1⁄2 of 1%. Any change in the Alternate Base Rate due to a change in the
      Prime Rate or the Federal Funds Effective Rate shall be effective from and
      including the effective date of such change in the Prime Rate or the Federal
      Funds Effective Rate, respectively.

     

    “Applicable
      Borrower”
means,
      with respect to any Loan, Letter of Credit or other amount owing hereunder
      or
      any matter pertaining to such Loan or other amount, whichever of the Borrowers
      is the primary obligor on such Loan, Letter of Credit or other
      amount.

     

    “Applicable
      Creditor”
shall
      have the meaning assigned to such term in Section
      9.15(b).

     

    “Applicable
      Lending Installation”
is
      defined in Section
      2.02(e).

     

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

     

    “Applicable
      Rate”
means,
      for any day, with respect to any Eurocurrency Loan or with respect to the
      facility fees payable hereunder, the applicable rate per annum set forth on
      Schedule
      1.01
      under
      the caption “Eurocurrency Spread” or “Facility Fee Rate”, as the case may be,
      based upon the Leverage Ratio.

     

    “Approved
      Fund”
has
      the
      meaning assigned to such term in Section
      9.04.

     

    “Asset
      Disposition”
means
      any sale, transfer or other disposition of any asset of the Company or any
      Subsidiary in a single transaction or in a series of related transactions (other
      than (a) the sale of inventory or products in the ordinary course or the sale
      of
      obsolete or worn out property in the ordinary course, (b) the making of payments
      for property and services used by the Company or any Subsidiary in the ordinary
      course of business and (c) the sale of Permitted Investments in the ordinary
      course of business).

     

    “Assignment
      and Assumption”
means
      an assignment and assumption entered into by a Lender and an assignee (with
      the
      consent of any party whose consent is required by Section
      9.04),
      and
      accepted by the Administrative Agent, in the form of Exhibit
      A
      or any
      other form approved by the Administrative Agent.

     

    “Availability
      Period”
means
      the period from and including the Effective Date to but excluding the earlier
      of
      the Maturity Date and the date of termination of the Commitments.

     

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

     

    “Borrowers”
means
      the Company and each Subsidiary Borrower.

     

    
      
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    “Borrowing”
means
      (a) Revolving Loans of the same Type, made, converted or continued on the same
      date to the same Applicable Borrower and, in the case of Eurocurrency Loans,
      as
      to which a single Interest Period is in effect, or (b) a Swingline
      Loan.

     

    “Borrowing
      Request”
means
      a
      request by the Company for a Revolving Borrowing in accordance with Section
      2.03.

     

    “Borrowing
      Subsidiary Agreement”
means
      a
      Borrowing Subsidiary Agreement substantially in the form of Exhibit B.

     

    “Borrowing
      Subsidiary Termination”
means
      a
      Borrowing Subsidiary Termination substantially in the form of Exhibit C.

     

    “Business
      Day”
means
      any day that is not a Saturday, Sunday or other day on which commercial banks
      in
      New York City are authorized or required by law to remain closed; provided
      that,
      when used in connection with a Eurocurrency Loan, the term “Business
      Day”
shall
      also exclude any day on which banks are not open for dealings in deposits in
      the
      currency in which such Eurocurrency Loan is denominated in the London interbank
      market or any other relevant jurisdiction.

     

    “Capital
      Lease Obligations”
of
      any
      Person means the obligations of such Person to pay rent or other amounts under
      any lease of (or other arrangement conveying the right to use) real or personal
      property, or a combination thereof, which obligations are required to be
      classified and accounted for as capital leases on a balance sheet of such Person
      under GAAP, and the amount of such obligations shall be the capitalized amount
      thereof determined in accordance with GAAP.

     

    “Change
      in Control”
means
      (a) the acquisition of ownership, directly or indirectly, beneficially or of
      record, by any Person or group (within the meaning of the Securities Exchange
      Act of 1934 and the rules of the Securities and Exchange Commission thereunder
      as in effect on the date hereof) of Equity Interests representing more than
      30%
      of the aggregate ordinary voting power represented by the issued and outstanding
      Equity Interests of the Company; or (b) occupation of a majority of the seats
      (other than vacant seats) on the board of directors of the Company by Persons
      who were neither (i) nominated by the board of directors of the Company nor
      (ii)
      appointed by directors so nominated.

     

    “Change
      in Law”
means
      (a) the adoption of any law, rule or regulation after the date of this
      Agreement, (b) any change in any law, rule or regulation or in the
      interpretation or application thereof by any Governmental Authority after the
      date of this Agreement or (c) compliance by any Lender or the Issuing Bank
      (or,
      for purposes of Section
      2.14(b),
      by any
      lending office of such Lender or by such Lender’s or the Issuing Bank’s holding
      company, if any) with any request, guideline or directive (whether or not having
      the force of law) of any Governmental Authority made or issued after the date
      of
      this Agreement.

     

    “Charges”
has
      the
      meaning set forth in Section
      9.13.

     

    “Class”,
      when
      used in reference to any Loan or Borrowing, refers to whether such Loan, or
      the
      Loans comprising such Borrowing, are Revolving Loans or Swingline
      Loans.

     

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

     

    “Commitment”
means,
      with respect to each Lender, the commitment of such Lender to make Revolving
      Loans and to acquire participations in Letters of Credit and Swingline Loans
      hereunder, expressed as an amount representing the maximum aggregate amount
      of
      such Lender’s Revolving Credit Exposure hereunder, as such commitment may be (a)
      reduced or increased from time to time pursuant to Section
      2.08
      and (b)
      reduced or increased from time to time pursuant to assignments by or to such
      Lender pursuant to Section
      9.04.
      The
      initial amount of each Lender’s Commitment is set forth on Schedule
      2.01,
      or in
      the Assignment and Assumption pursuant to which such Lender shall have assumed
      its Commitment, as applicable. The initial aggregate amount of the Lenders’
Commitments is $100,000,000.

     

    “Company”
means
      Select Comfort Corporation, a Minnesota corporation.

     

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

     

    “Controlled
      Subsidiary”
of
      a
      Person means (a) any subsidiary at least 80% of the outstanding voting
      securities of which shall at the time be owned or Controlled, directly or
      indirectly, by such Person or one or more Wholly-Owned Subsidiaries of such
      Person, or by such Person and one or more Wholly-Owned Subsidiaries of such
      Person, or (b) any partnership, limited liability company, association, joint
      venture or similar business organization at least 80% of the ownership interests
      having ordinary voting power of which shall at the time be so owned or
      Controlled.

     

    “Credit
      Card Program Agreement”
means
      that certain Amended and Restated Private Label Consumer Credit Card Program
      Agreement dated as of December 14, 2005 among GE Money Bank, the Company and
      Select Comfort Retail Corporation (the “Current
      GE Agreement”)
      and
      any amendment, supplement, extension or replacement thereof, the terms of which
      relating to the financial obligations of the Company and its Subsidiaries are
      substantially similar to those set forth in the Current GE
      Agreement.

     

    “Credit
      Documents”
means
      this Agreement, each promissory note, if any, delivered pursuant to Section
      2.09(e),
      each
      Borrowing Subsidiary Agreement and the Subsidiary Guaranty.

     

    “Credit
      Party”
means
      each Borrower and each Subsidiary Guarantor.

     

    “Default”
means
      any event or condition which constitutes an Event of Default or which upon
      notice, lapse of time or both would, unless cured or waived, become an Event
      of
      Default..

     

    “Disclosed
      Matters”
means
      the actions, suits and proceedings and the environmental matters disclosed
      in
Schedule
      3.06.

     

    “Dollars”
or
      “$”
refers
      to lawful money of the United States of America.

     

    
      
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    “Dollar
      Equivalent”
means,
      on any date of determination (a) with respect to any amount in Dollars, such
      amount, and (b) with respect to any amount in any Foreign Currency, the
      equivalent in Dollars of such amount, determined by the Administrative Agent
      pursuant to Section
      1.05
      using
      the Exchange Rate with respect to such Foreign Currency at the time in effect
      under the provisions of such Section.

     

    “Domestic
      Subsidiary”
means
      each Subsidiary that is incorporated under the laws of the United States, any
      State thereof or the District of Columbia.

     

    “EBITDA”
means,
      for any applicable computation period, the Company’s and Subsidiaries’ Net
      Income on a consolidated basis from continuing operations, plus,
      to the
      extent included in the determination of Net Income, (a) income and franchise
      taxes paid or accrued during such period, (b) Total Interest Expense for such
      period, amortization and depreciation deducted in determining Net Income for
      such period and (c) non-cash equity compensation expense deducted in determining
      Net Income in such period. For purposes of the computation of the Leverage
      Ratio
      for any period during which an Acquired Entity or Business was acquired, EBITDA
      shall be calculated on a pro forma basis as if such Acquired Entity or Business
      had been acquired (and any related Indebtedness incurred) on the first day
      of
      such computation period.

     

    “EBITDAR”
means,
      for any applicable computation period, EBITDA for such period, plus,
      to the
      extent included in the determination of Net Income, Rentals for such period.
      For
      purposes of the computation of the Interest Coverage Ratio for any period during
      which an Acquired Entity or Business was acquired, EBITDAR shall be calculated
      on a pro forma basis as if such Acquired Entity or Business had been acquired
      (and any related Indebtedness incurred) on the first day of such computation
      period.

     

    “Effective
      Date”
means
      the date on which the conditions specified in Section
      4.01
      are
      satisfied (or waived in accordance with Section
      9.02).

     

    “EMU
      Legislation”
means
      the legislative measures of the European Union for the introduction of,
      changeover to or operation of the euro in one or more member states of the
      European Union.

     

    “Environmental
      Laws”
means
      all laws, rules, regulations, codes, ordinances, orders, decrees, judgments,
      injunctions, notices or binding agreements issued, promulgated or entered into
      by any Governmental Authority, relating in any way to the environment,
      preservation or reclamation of natural resources, the management, release or
      threatened release of any Hazardous Material or to health and safety
      matters.

     

    “Environmental
      Liability”
means
      any liability, contingent or otherwise (including any liability for damages,
      costs of environmental remediation, fines, penalties or indemnities), of the
      Company or any Subsidiary directly or indirectly resulting from or based upon
      (a) violation of any Environmental Law, (b) the generation, use, handling,
      transportation, storage, treatment or disposal of any Hazardous Materials,
      (c)
      exposure to any Hazardous Materials, (d) the release or threatened release
      of
      any Hazardous Materials into the environment or (e) any contract, agreement
      or
      other consensual arrangement pursuant to which liability is assumed or imposed
      with respect to any of the foregoing.

     

    
      
        5

      

      
         

        
          

        

      

      
         

      

    

    “Equity
      Interests”
means
      shares of capital stock, partnership interests, membership interests in a
      limited liability company, beneficial interests in a trust or other equity
      ownership interests in a Person, and any warrants, options or other rights
      entitling the holder thereof to purchase or acquire any such equity
      interest.

     

    “ERISA”
means
      the Employee Retirement Income Security Act of 1974, as amended from time to
      time.

     

    “ERISA
      Affiliate”
means
      any trade or business (whether or not incorporated) that, together with the
      Company, is treated as a single employer under Section 414(b) or (c) of the
      Code
      or, solely for purposes of Section 302 of ERISA and Section 412 of the Code,
      is
      treated as a single employer under Section 414 of the Code.

     

    “ERISA
      Event”
means
      (a) any “reportable event”, as defined in Section 4043 of ERISA or the
      regulations issued thereunder with respect to a Plan (other than an event for
      which the 30 day notice period is waived); (b) the existence with respect to
      any
      Plan of an “accumulated funding deficiency” (as defined in Section 412 of the
      Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant
      to
      Section 412(d) of the Code or Section 303(d) of ERISA of an application for
      a
      waiver of the minimum funding standard with respect to any Plan; (d) the
      incurrence by the Company or any of its ERISA Affiliates of any liability under
      Title IV of ERISA with respect to the termination of any Plan; (e) the receipt
      by the Company or any ERISA Affiliate from the PBGC or a plan administrator
      of
      any notice relating to an intention to terminate any Plan or Plans or to appoint
      a trustee to administer any Plan; (f) the incurrence by the Company or any
      of
      its ERISA Affiliates of any liability with respect to the withdrawal or partial
      withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the
      Company or any ERISA Affiliate of any notice, or the receipt by any
      Multiemployer Plan from the Company or any ERISA Affiliate of any notice,
      concerning the imposition of Withdrawal Liability or a determination that a
      Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
      within the meaning of Title IV of ERISA.

     

    “Euro”
or
      “€”
means
      the single currency of the European Union as constituted by the treaty
      establishing the European Community being the Treaty of Rome, as amended from
      time to time and as referred to in the EMU Legislation.

     

    “Eurocurrency”,
      when
      used in reference to any Loan or Borrowing, refers to whether such Loan, or
      the
      Loans comprising such Borrowing, are bearing interest at a rate determined
      by
      reference to the Adjusted LIBO Rate.

     

    “Event
      of Default”
has
      the
      meaning assigned to such term in Article
      VII.

     

    “Evergreen
      LC”
      means a
      Letter of Credit which includes a provision which automatically extends the
      expiry date thereof for a specified period unless, within some period of time
      in
      advance of the then applicable expiry date thereof, the Administrative Agent
      gives notice to the beneficiary to the effect that such Letter of Credit will
      not be so extended.

     

    
      
        6

      

      
         

        
          

        

      

      
         

      

    

    “Exchange
      Rate”
means
      on any day, for purposes of determining the Dollar Equivalent of any currency
      other than Dollars, the rate at which such currency may be exchanged into
      Dollars at the time of determination on such day on the Reuters Currency pages,
      if available, for such currency. In the event that such rate does not appear
      on
      any Reuters Currency pages, the Exchange Rate shall be determined by reference
      to such other publicly available service for displaying exchange rates as may
      be
      agreed upon by the Administrative Agent and the Borrowers, or, in the absence
      of
      such an agreement, such Exchange Rate shall instead be the arithmetic average
      of
      the spot rates of exchange of the Administrative Agent in the market where
      its
      foreign currency exchange operations in respect of such currency are then being
      conducted, at or about such time as the Administrative Agent shall elect after
      determining that such rates shall be the basis for determining the Exchange
      Rate, on such date for the purchase of Dollars for delivery two Business Days
      later; provided
      that if
      at the time of any such determination, for any reason, no such spot rate is
      being quoted, the Administrative Agent may use any reasonable method it deems
      appropriate to determine such rate, and such determination shall be conclusive
      absent manifest error. 

     

    “Exchange
      Rate Date”
means,
      if on such date any outstanding Loan is (or any Loan that has been requested
      at
      such time would be) denominated in a currency other than Dollars, each of:
      

     

    (a)
      the
      last Business Day of each calendar month, 

     

    (b)
      if an
      Event of Default has occurred and is continuing, any Business Day designated
      as
      an Exchange Rate Date by the Administrative Agent in its sole discretion, and
      

     

    (c)
      each
      date (with such date to be reasonably determined by the Administrative Agent)
      that is on or about the date of (i) a Borrowing Request or an Interest Election
      Request with respect to any Revolving Borrowing or (ii) each request for the
      issuance, amendment, renewal or extension of any Letter of Credit or Swingline
      Loan.

     

    “Excluded
      Taxes”
means,
      with respect to the Administrative Agent, any Lender, the Issuing Bank or any
      other recipient of any payment to be made by or on account of any obligation
      of
      the Borrowers hereunder, (a) franchise taxes or income taxes imposed on (or
      measured by) its net income by the United States of America, or by the
      jurisdiction under the laws of which such recipient is organized or in which
      its
      principal office is located or, in the case of any Lender, in which its
      applicable lending office is located, (b) any branch profits taxes imposed
      by
      the United States of America or any similar tax imposed by any other
      jurisdiction in which any of the Borrowers is organized or in which its
      principal office is located and (c) in the case of a Foreign Lender (other
      than
      an assignee pursuant to a request by the Company under Section
      2.18(b)),
      any
      withholding tax that is imposed on amounts payable to such Foreign Lender at
      the
      time such Foreign Lender becomes a party to this Agreement (or designates a
      new
      lending office) or is attributable to such Foreign Lender’s failure to comply
      with Section
      2.16(e),
      except
      to the extent that such Foreign Lender (or its assignor, if any) was entitled,
      at the time of designation of a new lending office (or assignment), to receive
      additional amounts from the Borrowers with respect to such withholding tax
      pursuant to Section
      2.16(a).

     

    
      
        7

      

      
         

        
          

        

      

      
         

      

    

    “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 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.

     

    “Financial
      Officer”
means
      the chief financial officer, principal accounting officer, vice
      president-finance or controller of the Company.

     

    “Foreign
      Currency”
means
      with respect to any Revolving Loan, Euros, Sterling and any other currency
      acceptable to the Administrative Agent and each of the Lenders that is freely
      available, freely transferable and freely convertible into Dollars and in which
      dealings in deposits are carried on in the London interbank market.

     

    “Foreign
      Lender”
means
      any Lender that is organized under the laws of a jurisdiction other than that
      in
      which the Company is organized. For purposes of this definition, the United
      States of America, each State thereof and the District of Columbia shall be
      deemed to constitute a single jurisdiction.

     

    “Foreign
      Subsidiary”
means
      any Subsidiary that is incorporated or organized under the laws of any
      jurisdiction other than the United States of America, any State thereof or
      the
      District of Columbia.

     

    “GAAP”
means
      generally accepted accounting principles in the United States of
      America.

     

    “Governmental
      Authority”
means
      the government of the United States of America, any other nation or any
      political subdivision thereof, whether state or local, and any agency,
      authority, instrumentality, regulatory body, court, central bank or other entity
      exercising executive, legislative, judicial, taxing, regulatory or
      administrative powers or functions of or pertaining to government.

     

    “Guarantee”
of
      or
      by any Person (the “guarantor”)
      means
      any obligation, contingent or otherwise, of the guarantor guaranteeing or having
      the economic effect of guaranteeing any Indebtedness or other obligation of
      any
      other Person (the “primary
      obligor”)
      in any
      manner, whether directly or indirectly, and including any obligation of the
      guarantor, direct or indirect, (a) to purchase or pay (or advance or supply
      funds for the purchase or payment of) such Indebtedness or other obligation
      or
      to purchase (or to advance or supply funds for the purchase of) any security
      for
      the payment thereof, (b) to purchase or lease property, securities or services
      for the purpose of assuring the owner of such Indebtedness or other obligation
      of the payment thereof, (c) to maintain working capital, equity capital or
      any
      other financial statement condition or liquidity of the primary obligor so
      as to
      enable the primary obligor to pay such Indebtedness or other obligation or
      (d)
      as an account party in respect of any letter of credit or letter of guaranty
      issued to support such Indebtedness or obligation; provided,
      that
      the term

     

     

    
      
        8

      

      
         

        
          

        

      

      
         

      

    

    Guarantee
      shall not include endorsements for collection or deposit in the ordinary course
      of business. The amount of any Guarantee made by any guarantor shall be deemed
      to be the lower of (a) an amount equal to the stated or determinable amount
      of
      the primary obligation in respect of which such Guarantee is made and (b) the
      maximum amount for which such guarantor may be liable pursuant to the terms
      of
      the instrument embodying such Guarantee, unless (in the case of a primary
      obligation that is not Indebtedness) such primary obligation and the maximum
      amount for which such guarantor may be liable are not stated or determinable,
      in
      which case the amount of such Guarantee shall be such guarantor’s maximum
      reasonably anticipated liability in respect thereof as determined by the Company
      in good faith.

     

    “Hazardous
      Materials”
means
      all explosive or radioactive substances or wastes and all hazardous or toxic
      substances, wastes or other pollutants, including petroleum or petroleum
      distillates, asbestos or asbestos containing materials, polychlorinated
      biphenyls, radon gas, infectious or medical wastes and all other substances
      or
      wastes of any nature regulated pursuant to any Environmental Law.

     

    “Indebtedness”
of
      any
      Person means, without duplication, (a) all obligations of such Person for
      borrowed money or with respect to deposits or advances of any kind, (b) all
      obligations of such Person evidenced by bonds, debentures, notes or similar
      instruments, (c) all obligations of such Person upon which interest charges
      are
      customarily paid, (d) all obligations of such Person under conditional sale
      or
      other title retention agreements relating to property acquired by such Person,
      (e) all obligations of such Person in respect of the deferred purchase price
      of
      property or services (excluding current accounts payable incurred in the
      ordinary course of business), (f) all Indebtedness of others secured by (or
      for
      which the holder of such Indebtedness has an existing right, contingent or
      otherwise, to be secured by) any Lien on property owned or acquired by such
      Person, whether or not the Indebtedness secured thereby has been assumed, (g)
      all Guarantees by such Person of Indebtedness of others, (h) all Capital Lease
      Obligations of such Person, (i) all obligations, contingent or otherwise, of
      such Person as an account party in respect of letters of credit and letters
      of
      guaranty, (j) all obligations, contingent or otherwise, of such Person in
      respect of bankers’ acceptances and (k) all Off-Balance Sheet Liabilities. The
      Indebtedness of any Person (x) shall include the Indebtedness of any other
      entity (including any partnership in which such Person is a general partner)
      to
      the extent such Person is liable therefor as a result of such Person’s ownership
      interest in or other relationship with such entity, except to the extent the
      terms of such Indebtedness provide that such Person is not liable therefor,
      and
      (y) shall exclude any liability or obligations arising from a breach of a
      representation, warranty or other contractual obligation (other than a
      Guarantee) arising under the Credit Card Program Agreement.

     

    “Indemnified
      Taxes”
means
      Taxes other than Excluded Taxes.

     

    “Information
      Memorandum”
means
      the Confidential Information Memorandum dated April 21, 2006 relating to the
      Company and the Transactions.

     

    “Interest
      Coverage Ratio”
means
      as of the end of any fiscal quarter of the Company, the ratio of (a) EBITDAR
      to
      (b) the sum of Total Interest Expense plus Rentals, in each case for the period
      of four fiscal quarters then ended, computed on a consolidated basis for the
      Company and its Subsidiaries.

     

    
      
        9

      

      
         

        
          

        

      

      
         

      

    

    “Interest
      Election Request”
means
      a
      request by the Company to convert or continue a Revolving Borrowing in
      accordance with Section
      2.07.

     

    “Interest
      Payment Date”
means
      (a) with respect to any ABR Loan (other than a Swingline Loan), the last day
      of
      each March, June, September and December, (b) with respect to any Eurocurrency
      Borrowing, the last day of the Interest Period applicable to the Borrowing
      of
      which such Loan is a part and, in the case of a Eurocurrency Borrowing with
      an
      Interest Period of more than three months’ duration, each day prior to the last
      day of such Interest Period that occurs at intervals of three months’ duration
      after the first day of such Interest Period and (c) with respect to any
      Swingline Loan, the day that such Loan is required to be repaid.

     

    “Interest
      Period”
means
      with respect to any Eurocurrency Borrowing, the period commencing on the date
      of
      such Borrowing and ending on the numerically corresponding day in the calendar
      month that is one, two, three or six months (or, with the consent of each
      Lender, nine or twelve months) thereafter, as the Company may elect;
provided,
      that
      (i) if any Interest Period would end on a day other than a Business Day, such
      Interest Period shall be extended to the next succeeding Business Day unless
      such next succeeding Business Day would fall in the next calendar month, in
      which case such Interest Period shall end on the next preceding Business Day
      and
      (ii) any Interest Period that commences on the last Business Day of a calendar
      month (or on a day for which there is no numerically corresponding day in the
      last calendar month of such Interest Period) shall end on the last Business
      Day
      of the last calendar month of such Interest Period. For purposes hereof, the
      date of a Borrowing initially shall be the date on which such Borrowing is
      made
      and thereafter shall be the effective date of the most recent conversion or
      continuation of such Borrowing.

     

    “Issuing
      Bank”
means
      JPMorgan, in its capacity as the issuer of Letters of Credit hereunder, and
      its
      successors in such capacity as provided in Section
      2.05(i).
      The
      Issuing Bank may, in its discretion, arrange for one or more Letters of Credit
      to be issued by Affiliates of the Issuing Bank, in which case the term “Issuing
      Bank” shall include any such Affiliate with respect to Letters of Credit issued
      by such Affiliate.

     

    “JPMorgan”
means
      JPMorgan Chase Bank, National Association, a national banking association,
      and
      its successors.

     

    “LC
      Disbursement”
means
      a
      payment made by the Issuing Bank pursuant to a Letter of Credit.

     

    “LC
      Exposure”
means,
      at any time, the sum of (a) the aggregate undrawn amount of all outstanding
      Letters of Credit at such time plus (b) the aggregate amount of all LC
      Disbursements that have not yet been reimbursed by or on behalf of the Company
      at such time. The LC Exposure of any Lender at any time shall be its Applicable
      Percentage of the total LC Exposure at such time.

     

    “Lenders”
means
      the Persons listed on Schedule
      2.01
      and any
      other Person that shall have become a party hereto pursuant to Section
      2.08(d)
      or an
      Assignment and 

     

    
      
        10

      

      
         

        
          

        

      

      
         

      

    

    Assumption,
      other than any such Person that ceases to be a party hereto pursuant to an
      Assignment and Assumption. Unless the context otherwise requires, the term
      “Lenders” includes the Swingline Lender.

     

    “Letter
      of Credit”
means
      any letter of credit issued pursuant to this Agreement.

     

    “Leverage
      Ratio”
means,
      at any time, the ratio of Total Debt at such time to EBITDA for the most
      recently completed four fiscal quarters of the Company, computed on a
      consolidated basis for the Company and its Subsidiaries.

     

    “LIBO
      Rate”
means,
      with respect to any Eurocurrency Borrowing for any Interest Period, the rate
      per
      annum determined by the Administrative Agent at approximately 11:00 a.m., London
      time, on the Quotation Day for such Interest Period by reference to the British
      Bankers’ Association Interest Settlement Rates for deposits in the currency of
      such Borrowing (as reflected on the applicable Telerate screen page), for a
      period equal to such Interest Period; provided that, to the extent that an
      interest rate is not ascertainable pursuant to the foregoing provisions of
      this
      definition, the “LIBO Rate” shall be the average (rounded upward, if necessary,
      to the next 1/100 of 1%) determined by the Administrative Agent of the
      respective interest rates per annum reported to the Administrative Agent by
      JPMorgan and each other Lender selected by the Administrative Agent (JPMorgan
      and each such other Lender, the “Reference Lenders”) as the rate at which each
      Reference Lender offers to place deposits in the currency of such Borrowing
      for
      such Interest Period to first-class banks in the London interbank market at
      approximately 11:00 a.m., London time, on the Quotation Day for such Interest
      Period.

     

    “Lien”
means,
      with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
      hypothecation, encumbrance, charge or security interest in, on or of such asset,
      (b) the interest of a vendor or a lessor under any conditional sale agreement,
      capital lease or title retention agreement (or any financing lease having
      substantially the same economic effect as any of the foregoing) relating to
      such
      asset and (c) in the case of securities, any purchase option, call or similar
      right of a third party with respect to such securities.

     

    “Loans”
means
      the loans made by the Lenders to the Borrowers pursuant to this
      Agreement.

     

    “Local
      Time”
means
      (a) with respect to a Loan or Borrowing denominated in Dollars, New York City
      time and (b) with respect to a Loan or Borrowing denominated in any Foreign
      Currency, London time.

     

    “Material
      Adverse Effect”
means
      a
      material adverse effect on (a) the business, assets, operations, prospects
      or
      condition, financial or otherwise, of the Company and the Subsidiaries taken
      as
      a whole, (b) the ability of any Credit Party to perform any of its obligations
      under the Credit Documents or (c) the rights of or benefits available to the
      Lenders under the Credit Documents.

     

    “Material
      Indebtedness”
means
      Indebtedness (other than the Loans and Letters of Credit), or obligations in
      respect of one or more Swap Agreements, of any one or more of the Company and
      its Subsidiaries in an aggregate principal amount exceeding $10,000,000. For
      purposes of determining Material Indebtedness, the “principal amount” of the
      obligations of the Company or any Subsidiary in respect of any Swap Agreement
      at
      any time shall be the

     

    
      
        11

      

      
         

        
          

        

      

      
         

      

    

     maximum
      aggregate amount (giving effect to any netting agreements) that the Company
      or
      such Subsidiary would be required to pay if such Swap Agreement were terminated
      at such time.

     

    “Material
      Subsidiary”
means
      a
      Domestic Subsidiary held directly by the Company or any Subsidiary Guarantor
      that is a Domestic Subsidiary which (a) as of the date hereof, has assets having
      a book value in excess of $15,000,000 or which generated in excess of $5,000,000
      of net income over the four fiscal quarter period most recently ended prior
      to
      the date hereof, or (b) thereafter, has or acquires assets having a book value
      in excess of $15,000,000 or which generated in excess of $5,000,000 of net
      income over the four fiscal quarter period most recently ended prior to the
      time
      of computation.

     

    “Maturity
      Date”
means
      June 9, 2011.

     

    “Maximum
      Rate”
has
      the
      meaning set forth in Section
      9.15.

     

    “Moody’s”
means
      Moody’s Investors Service, Inc.

     

    “Multiemployer
      Plan”
means
      a
      multiemployer plan as defined in Section 4001(a)(3) of ERISA.

     

    “Net
      Income”
means,
      for any computation period, with respect to the Company on a consolidated basis
      with its Subsidiaries (other than any Subsidiary which is restricted from
      declaring or paying dividends or otherwise advancing funds to its parent whether
      by contract or otherwise), cumulative net income earned during such period
      (determined before the deduction of minority interests) as determined in
      accordance with GAAP.

     

    “Non-Extension
      Date”
means,
      with respect to any Evergreen LC, the date by which the Issuing Bank must give
      notice to the beneficiary thereof of the non-renewal of such Evergreen LC in
      order to avoid the automatic extension of the expiry date thereof.

     

    “Off-Balance
      Sheet Liability”
of
      a
      Person means (a) any repurchase obligation or liability of such Person with
      respect to accounts or notes receivable sold by such Person, (b) any liability
      under any so-called “synthetic lease” arrangement or transaction entered into by
      such Person, or (c) any obligation 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 balance sheets of such
      Person.

     

    “Other
      Taxes”
means
      any and all present or future stamp or documentary taxes or any other excise
      or
      property taxes, charges or similar levies arising from any payment made
      hereunder or from the execution, delivery or enforcement of, or otherwise with
      respect to, this Agreement.

     

    “Participant”
has
      the
      meaning set forth in Section
      9.04.

     

    “PBGC”
means
      the Pension Benefit Guaranty Corporation referred to and defined in ERISA and
      any successor entity performing similar functions.

     

    
      
        12

      

      
         

        
          

        

      

      
         

      

    

    “Permitted
      Acquisition”
means
      the acquisition by the Company or a Wholly-Owned Subsidiary thereof of an
      Acquired Entity or Business (including by way of merger of such Acquired Entity
      or Business with and into the Company (so long as the Company is the surviving
      corporation) or a Wholly-Owned Subsidiary thereof (so long as the Wholly-Owned
      Subsidiary is the surviving corporation); provided
      that, in
      each case, (a) the consideration paid or to be paid by the Company or such
      Wholly-Owned Subsidiary consists solely of cash (including proceeds of Revolving
      Loans or Swingline Loans), the issuance or incurrence of Indebtedness otherwise
      permitted by Section
      6.01,
      the
      issuance of common stock of the Company to the extent no Default or Event of
      Default exists pursuant to clause (m) of Article
      VII
      or would
      result therefrom and the assumption/acquisition of any Indebtedness (calculated
      at face value) which is permitted to remain outstanding in accordance with
      the
      requirements of Section
      6.01;
      (b) in
      the case of the acquisition of 80% or more of the capital stock of any Person
      (including by way of merger), such Person shall own no capital stock of any
      other Person (excluding de
      minimis
      amounts)
      unless either (i) such Person owns 100% of the capital stock of such other
      Person or (ii) (x) such Person and its Wholly-Owned Subsidiaries own at least
      80% of the consolidated assets of such other Person and its Subsidiaries and
      (y)
      any non-Wholly-Owned Subsidiary of such Person was a non-Wholly-Owned Subsidiary
      prior to the date of such Permitted Acquisition of such Person; (c) the Acquired
      Entity or Business acquired pursuant to the respective Permitted Acquisition
      is
      in a business permitted by Section
      6.03(c);
      (d) in
      the case of an acquisition of stock, such acquisition shall have been approved
      by the board of directors of the Acquired Entity or Business; and (e) all
      applicable requirements of Sections
      6.03
      and
6.04(f)
      applicable to Permitted Acquisitions are satisfied.

     

    “Permitted
      Encumbrances”
      means:

     

    (a) Liens
      imposed by law for Taxes that are not yet due or are being contested in
      compliance with Section
      5.04;

     

    (b) carriers’,
      warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens
      imposed by law, arising in the ordinary course of business and securing
      obligations that are not overdue by more than 30 days or are being contested
      in
      compliance with Section
      5.04;

     

    (c) pledges
      and deposits made in the ordinary course of business in compliance with workers’
compensation, unemployment insurance and other social security laws or
      regulations;

     

    (d) deposits
      to secure the performance of bids, trade contracts, leases, statutory
      obligations, surety and appeal bonds, performance bonds and other obligations
      of
      a like nature, in each case in the ordinary course of business;

     

    (e) judgment
      Liens in respect of judgments that do not constitute an Event of Default under
      clause (k) of Article
      VII;
      

     

    (f)  easements,
      zoning restrictions, rights-of-way and similar encumbrances on real property
      imposed by law or arising in the ordinary course of business that do not secure
      any

     

    
      
        13

      

      
         

        
          

        

      

      
         

      

    

    monetary
      obligations and do not materially detract from the value of the affected
      property or interfere with the ordinary conduct of business of the Company
      or
      any Subsidiary; and

     

    (g)  Liens
      arising by virtue of any statutory or common law provision relating to banker's
      liens, rights of set-off or similar rights and remedies as to deposit accounts
      or other funds maintained with a creditor depository institution; provided,
      that
      (i) such deposit account is not a dedicated cash collateral account and is
      not
      subject to restrictions against access by the Company in excess of those set
      forth by regulations promulgated by the Board and (ii) such deposit account
      is
      not intended by the Company or any of its Subsidiaries to provide collateral
      to
      the depository institution;

     

    provided
      that the
      term “Permitted Encumbrances” shall not include any Lien securing
      Indebtedness.

     

    “Permitted
      Investments”
      means:

     

    (a) direct
      obligations of, or obligations the principal of and interest on which are
      unconditionally guaranteed by, the United States of America, in each case
      maturing within 36 months from the date of acquisition thereof;

     

    (b) obligations
      issued by any Federal agency of the United States of America, in each case
      maturing within 36 months from the date of acquisition thereof;

     

    (c)
       municipal
      investments and direct obligations of any State of the United States of America,
      in each case with a rating of A or higher by S&P and/or A2 or higher by
      Moody's and a maximum maturity of 36 months (for securities where the interest
      rate is adjusted periodically (e.g. floating rate securities), the reset date
      will be used to determine the maturity date);

     

    (d) investments
      in commercial paper maturing within 270 days from the date of acquisition
      thereof and having, at such date of acquisition, a rating of A-2 from S&P or
      P-2 from Moody’s;

     

    (e) investments
      in certificates of deposit, banker’s acceptances and time deposits maturing
      within 36 months from the date of acquisition thereof issued or guaranteed
      by or
      placed with, and money market deposit accounts issued or offered by, any
      domestic office of any commercial bank organized under the laws of the United
      States of America or any State thereof which has a combined capital and surplus
      and undivided profits of not less than $500,000,000;

     

    (f) fully
      collateralized repurchase agreements with a term of not more than 30 days for
      securities described in clause (a) above and entered into with a financial
      institution satisfying the criteria described in clause (e) above;

     

    (g)  money
      market funds that (i) comply with the criteria set forth in Securities and
      Exchange Commission Rule 2a-7 under the Investment Company Act of 1940, (ii)
      are
      rated AAA by S&P or Aaa by Moody’s and (iii) have portfolio assets of at
      least $5,000,000,000;

     

    
      
        14

      

      
         

        
          

        

      

      
         

      

    

    (h)  investments
      in auction rate securities with a rating of A or higher by S&P and/or
      Moody's and a maximum maturity of one year, for which the reset date will be
      used to determine the maturity date;

     

    (i)  investments
      in variable rate demand notes with a rating of A or higher by S&P and/or A2
      or higher by Moody's and a maximum maturity of one year, for which the reset
      date will be used to determine the maturity date; 

     

    (j) investments
      in corporate and bank debt including, but not limited to, corporate bonds and
      loan participations. The minimum rating for such investments must be rated
“A-2”
and/or “P-2” or have a long term rating of BBB by S&P and/or Baa2 by Moody’s
      respectively; and

     

    (k) other
      investments made in accordance with the Company's investment policy as in effect
      on the Effective Date in the form previously provided to the Administrative
      Agent and the Lenders and other immaterial changes thereto.

     

    “Permitted
      Securitization”
means
      any receivables financing program providing for the sale of accounts
      receivables, payment intangibles, accounts or notes receivable and related
      rights by the Company or its Subsidiaries to an SPC for cash and other nominal
      consideration reasonably satisfactory to the Administrative Agent in
      transactions purporting to be sales (and treated as sales for GAAP purposes),
      which SPC shall finance the purchase of such assets by the sale, transfer,
      conveyance, lien or pledge of such assets to one or more limited purpose
      financing companies, special purpose entities and/or other financial
      institutions, in each case pursuant to documentation in form and substance
      reasonably satisfactory to the Administrative Agent.

     

    “Person”
means
      any natural person, corporation, limited liability company, trust, joint
      venture, association, company, partnership, Governmental Authority or other
      entity.

     

    “Plan”
means
      any employee pension benefit plan (other than a Multiemployer Plan) subject
      to
      the provisions of Title IV of ERISA or Section 412 of the Code or Section 302
      of
      ERISA, and in respect of which the Company or any ERISA Affiliate is (or, if
      such plan were terminated, would under Section 4069 of ERISA be deemed to be)
      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.

     

    “Quotation
      Day”
means,
      with respect to any Eurocurrency Borrowing and any Interest Period, the day
      on
      which it is market practice in the relevant interbank market for prime banks
      to
      give quotations for deposits in the currency of such Borrowing for delivery
      on
      the first day of such Interest Period. If such quotations would normally be
      given by prime banks on more than one day, the Quotation Day will be the last
      of
      such days.

     

    
      
        15

      

      
         

        
          

        

      

      
         

      

    

    “Receivables
      Transaction Attributed Indebtedness”
      means
      the amount of obligations outstanding under the legal documents entered into
      as
      part of any Permitted Securitization on any date of determination that would
      be
      characterized as principal if such Permitted Securitization were structured
      as a
      secured lending transaction rather than as a purchase.

     

    “Register”
has
      the
      meaning set forth in Section
      9.04.

     

    “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.

     

    “Rentals”
of
      a
      Person means, with respect to any period, the aggregate amount of rental expense
      deducted in computing Net Income of such Person. For purposes of the computation
      of the Interest Coverage Ratio for any period during which an Acquired Entity
      or
      Business was acquired, Rentals shall be calculated on a pro forma basis as
      if
      such Acquired Entity or Business had been acquired (and any related Indebtedness
      incurred) on the first day of such computation period. 

     

    “Required
      Lenders”
means,
      at any time, Lenders having Revolving Credit Exposures and unused Commitments
      representing more than 50% of the sum of the total Revolving Credit Exposures
      and unused Commitments at such time; provided,
      that if
      there are only two or three Lenders, the Required Lenders shall mean at least
      two Lenders having Revolving Credit Exposures and unused Guarantees representing
      at least 662⁄3% of the sum of the total Revolving Credit Exposures and unused
      Commitments at such time.

     

    “Restricted
      Payment”
means
      any dividend or other distribution (whether in cash, securities or other
      property) with respect to any Equity Interests in the Company or any Subsidiary,
      or any payment (whether in cash, securities or other property), including any
      sinking fund or similar deposit, on account of the purchase, redemption,
      retirement, acquisition, cancellation or termination of any such Equity
      Interests in the Company or any option, warrant or other right to acquire any
      such Equity Interests in the Company.

     

    “Revolving
      Credit Exposure”
means,
      with respect to any Lender at any time, the sum of the outstanding principal
      amount of such Lender’s Revolving Loans and its LC Exposure and Swingline
      Exposure at such time.

     

    “Revolving
      Loan”
means
      a
      Loan made pursuant to Section
      2.01.

     

    “S&P”
means
      Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies,
      Inc.

     

    “SPC”
means
      a
      special purpose, bankruptcy-remote Person formed for the sole and exclusive
      purpose of engaging in activities in connection with the purchase, sale and
      financing of accounts receivable, payment intangibles, accounts or notes
      receivable and related rights in connection with and pursuant to a Permitted
      Securitization.

     

    
      
        16

      

      
         

        
          

        

      

      
         

      

    

    “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 Adjusted LIBO 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. Eurocurrency 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.

     

    “Sterling”
or
      “£”
means
      the lawful currency of the United Kingdom of Great Britain and Northern
      Ireland.

     

    “subsidiary”
means,
      with respect to any Person (the “parent”)
      at any
      date, any corporation, limited liability company, partnership, association
      or
      other entity the accounts of which would be consolidated with those of the
      parent in the parent’s consolidated financial statements if such financial
      statements were prepared in accordance with GAAP as of such date, as well as
      any
      other corporation, limited liability company, partnership, association or other
      entity (a) of which securities or other ownership interests representing more
      than 50% of the equity or more than 50% of the ordinary voting power or, in
      the
      case of a partnership, more than 50% of the general partnership interests are,
      as of such date, owned, controlled or held, or (b) that is, as of such date,
      otherwise Controlled, by the parent or one or more subsidiaries of the parent
      or
      by the parent and one or more subsidiaries of the parent.

     

    “Subsidiary”
means
      any subsidiary of the Company.

     

    “Subsidiary
      Borrower”
means
      a
      wholly-owned Subsidiary designated as such by the Company pursuant to
Section
      2.19.

     

    “Subsidiary
      Guarantor”
      means
      each Subsidiary of the Company which is a party to the Subsidiary
      Guaranty.

    

    “Subsidiary
      Guaranty”
means
      the Subsidiary Guaranty dated as of the date hereof made by the Subsidiaries
      party thereto in favor of the Administrative Agent and the Lenders, as the
      same
      may be amended, restated, modified or supplemented from time to time. The
      Subsidiary Guarantors initially party to the Subsidiary Guaranty are so
      designated on Schedule
      3.12
      hereto.

     

    “Substantial
      Portion”
means,
      with respect to the property of the Company and its Subsidiaries, property
      which
      (a) represents more than 10% of the consolidated assets of the Company and
      its
      Subsidiaries as would be shown in the consolidated financial statements of
      the
      Company and its Subsidiaries as at the beginning of the twelve-month period
      ending with the last day of the month preceding the month in which such
      determination is made, or (b) is responsible for more than 10% of the
      consolidated net sales or of the consolidated net income of the 

     

    
      
        17

      

      
         

        
          

        

      

      
         

      

    

    Company
      and its Subsidiaries as reflected in the financial statements referred to in
      clause (a) above.

     

    “Swap
      Agreement”
means
      any agreement with respect to any swap, forward, future or derivative
      transaction or option or similar agreement involving, or settled by reference
      to, one or more rates, currencies, commodities, equity or debt instruments
      or
      securities, or economic, financial or pricing indices or measures of economic,
      financial or pricing risk or value or any similar transaction or any combination
      of these transactions; provided
      that no
      phantom stock or similar plan providing for payments only on account of services
      provided by current or former directors, officers, employees or consultants
      of
      the Company or the Subsidiaries shall be a Swap Agreement.

     

    “Swingline
      Exposure”
means,
      at any time, the aggregate principal amount of all Swingline Loans outstanding
      at such time. The Swingline Exposure of any Lender at any time shall be its
      Applicable Percentage of the total Swingline Exposure at such time.

     

    “Swingline
      Lender”
means
      JPMorgan, in its capacity as lender of Swingline Loans hereunder.

     

    “Swingline
      Loan”
means
      a
      Loan made pursuant to Section
      2.04.

     

    “Swingline
      Rate”
means
      ABR or such other rate per annum upon which the Applicable Borrower and the
      Swingline Lender may agree with respect to such Loan.

     

    “Taxes”
means
      any and all present or future taxes, levies, imposts, duties, deductions,
      charges or withholdings imposed by any Governmental Authority.

     

    “Total
      Debt”
means,
      all Indebtedness of the Company and its Subsidiaries, on a consolidated basis,
      calculated in accordance with GAAP plus,
      without
      duplication, (a) all Off-Balance Sheet Liabilities, (b) the face amount of
      all
      outstanding letters of credit in respect of which the Company or any Subsidiary
      has any actual or contingent reimbursement obligation and (c) the principal
      amount of all Guarantees of the Company and its Subsidiaries.

     

    “Total
      Interest Expense”
means,
      for any period, total cash interest expense deducted in the computation of
      Net
      Income for such period (including that attributable to Capital Lease Obligations
      and interest paid under synthetic leases) of the Company and its Subsidiaries
      for such period with respect to all outstanding Indebtedness of the Company
      and
      its Subsidiaries (including all commissions, discounts and other fees and
      charges owed with respect to letters of credit and bankers’ acceptance financing
      and net costs of rate hedging in respect of interest rates to the extent such
      net costs are allocable to such period in accordance with GAAP).

     

    “Transactions”
means
      the execution, delivery and performance by the Borrowers of this Agreement
      and
      any Borrowing Subsidiary Agreements, the borrowing of Loans, the use of the
      proceeds thereof and the issuance of Letters of Credit hereunder.

     

    “Type”,
      when
      used in reference to any Loan or Borrowing, refers to whether the rate of
      interest on such Loan, or on the Loans comprising such Borrowing, is determined
      by reference to the Adjusted LIBO Rate or the Alternate Base Rate.

     

    
      
        18

      

      
         

        
          

        

      

      
         

      

    

    “Wholly-Owned
      Subsidiary”
of
      a
      Person means (a) any subsidiary all of the outstanding voting securities of
      which shall at the time be owned or controlled, directly or indirectly, by
      such
      Person or one or more Wholly-Owned Subsidiaries of such Person, or by such
      Person and one or more Wholly-Owned subsidiaries of such Person, or (b) any
      partnership, limited liability company, association, joint venture or similar
      business organization 100% of the ownership interests having ordinary voting
      power of which shall at the time be so owned or controlled (other than in the
      case of Foreign Subsidiaries, director’s qualifying shares and/or other nominal
      amounts of shares required to be held by Persons other than the Company and
      its
      Subsidiaries under applicable law).

     

    “Withdrawal
      Liability”
means
      liability to a Multiemployer Plan as a result of a complete or partial
      withdrawal from such Multiemployer Plan, as such terms are defined in Part
      I of
      Subtitle E of Title IV of ERISA.

     

    SECTION
      1.02.   Classification
      of Loans and Borrowings.
      For
      purposes of this Agreement, Loans may be classified and referred to by Class
      (e.g.,
      a
“Revolving Loan”) or by Type (e.g.,
      a
“Eurocurrency Loan”) or by Class and Type (e.g.,
      a
“Eurocurrency Revolving Loan”). Borrowings also may be classified and referred
      to by Class (e.g.,
      a
“Revolving Borrowing”) or by Type (e.g.,
      a
“Eurocurrency Borrowing”) or by Class and Type (e.g.,
      a
“Eurocurrency Revolving Borrowing”).

     

    SECTION
      1.03.   Terms
      Generally.
      The
      definitions of terms herein shall apply equally to the singular and plural
      forms
      of the terms defined. Whenever the context may require, any pronoun shall
      include the corresponding masculine, feminine and neuter forms. The words
“include”, “includes” and “including” shall be deemed to be followed by the
      phrase “without limitation”. The word “will” shall be construed to have the same
      meaning and effect as the word “shall”. Unless the context requires otherwise
      (a) any definition of or reference to any agreement, instrument or other
      document herein shall be construed as referring to such agreement, instrument
      or
      other document as from time to time amended, supplemented or otherwise modified
      (subject to any restrictions on such amendments, supplements or modifications
      set forth herein), (b) any reference herein to any Person shall be construed
      to
      include such Person’s successors and assigns, (c) the words “herein”, “hereof”
and “hereunder”, and words of similar import, shall be construed to refer to
      this Agreement in its entirety and not to any particular provision hereof,
      (d)
      all references herein to Articles, Sections, Exhibits and Schedules shall be
      construed to refer to Articles and Sections of, and Exhibits and Schedules
      to,
      this Agreement and (e) the words “asset” and “property” shall be construed to
      have the same meaning and effect and to refer to any and all tangible and
      intangible assets and properties, including cash, securities, accounts and
      contract rights.

     

    SECTION
      1.04.   Accounting
      Terms; GAAP.
      Except
      as otherwise expressly provided herein, all terms of an accounting or financial
      nature shall be construed in accordance with GAAP, as in effect from time to
      time; provided
      that, if
      the Company notifies the Administrative Agent that the Company requests an
      amendment to any provision hereof to eliminate the effect of any change
      occurring after the date hereof in GAAP or in the application thereof on the
      operation of such provision (or if the Administrative Agent notifies the Company
      that the Required Lenders request an amendment to any provision hereof for
      such
      purpose), regardless of whether any such notice is given before or after such
      change in GAAP or in the

     

    
      
        19

      

      
         

        
          

        

      

      
         

      

    

    application
      thereof, then such provision shall be interpreted on the basis of GAAP as in
      effect and applied immediately before such change shall have become effective
      until such notice shall have been withdrawn or such provision amended in
      accordance herewith.

     

    SECTION
      1.05.   Foreign
      Currency Calculations.
      (a)
      For
      purposes of determining the Dollar Equivalent of any Advance denominated in
      a
      Foreign Currency or any related amount, the Administrative Agent shall determine
      the Exchange Rate as of the applicable Exchange Rate Date with respect to each
      Foreign Currency in which any requested or outstanding Advance is denominated
      and shall apply such Exchange Rates to determine such amount (in each case
      after
      giving effect to any Advance to be made or repaid on or prior to the applicable
      date for such calculation). 

     

    (b)  For
      purposes of any determination under Section
      6.01,
      6.02,
      6.04
      or
6.09
      or under
Article
      VII,
      all
      amounts incurred, outstanding or proposed to be incurred or outstanding in
      currencies other than Dollars shall be translated into Dollars at the currency
      exchange rates in effect on the date of such determination; provided
      that no
      Default shall arise as a result of any limitation set forth in Dollars in
Section
      6.01
      or
6.02
      being
      exceeded solely as a result of changes in currency exchange rates from those
      rates applicable at the time or times Indebtedness or Liens were initially
      consummated in reliance on the exceptions under such Sections. For purposes
      of
      any determination under Section
      6.04
      or
6.09,
      the
      amount of each investment, asset disposition or other applicable transaction
      denominated in a currency other than Dollars shall be translated into Dollars
      at
      the currency exchange rate in effect on the date such investment, disposition
      or
      other transaction is consummated. Such currency exchange rates shall be
      determined in good faith by the Borrowers. 

     

    

    SECTION
      1.06.   Redenomination
      of Certain Foreign Currencies.
      (a)
      Each
      obligation of any party to this Agreement to make a payment denominated in
      the
      national currency unit of any member state of the European Union that adopts
      the
      Euro as its lawful currency after the Effective Date shall be redenominated
      into
      Euro at the time of such adoption (in accordance with the EMU Legislation).
      If,
      in relation to the currency of any such member state, the basis of accrual
      of
      interest expressed in this Agreement in respect of that currency shall be
      inconsistent with any convention or practice in the London Interbank Market
      for
      the basis of accrual of interest in respect of the Euro, such expressed basis
      shall be replaced by such convention or practice with effect from the date
      on
      which such member state adopts the Euro as its lawful currency; provided that
      if
      any Borrowing in the currency of such member state is outstanding immediately
      prior to such date, such replacement shall take effect, with respect to such
      Borrowing, at the end of the then current Interest Period.

     

    (b)  Without
      prejudice and in addition to any method of conversion or rounding prescribed
      by
      any EMU Legislation and (i) without limiting the liability of any Borrower
      for
      any amount due under this Agreement and (ii) without increasing any Commitment
      of any Lender, all references in this Agreement to minimum amounts (or integral
      multiples thereof) denominated in the national currency unit of any member
      state
      of the European Union that adopts the Euro as its lawful currency after the
      Effective Date shall, immediately upon such adoption, be replaced by references
      to such minimum amounts (or integral multiples thereof) as shall be specified
      herein with respect to Borrowings denominated in Euros.

     

    
      
        20

      

      
         

        
          

        

      

      
         

      

    

    (c)  Each
      provision of this Agreement shall be subject to such reasonable changes of
      construction as the Administrative Agent may from time to time specify to be
      appropriate to reflect the adoption of the Euro by any member state of the
      European Union and any relevant market conventions or practices relating to
      the
      Euro or any other Foreign Currency.

     

        
      ARTICLE II  

     

    The
      Credits

     

    SECTION
      2.01.   Commitments.
      Subject
      to the terms and conditions set forth herein, each Lender agrees to make
      Revolving Loans denominated in Dollars and Foreign Currencies to one or more
      of
      the Borrowers from time to time during the Availability Period in an aggregate
      principal amount that will not result in (a) such Lender’s Revolving Credit
      Exposure exceeding such Lender’s Commitment, (b) the sum of the total Revolving
      Credit Exposures exceeding the total Commitments, (c) the Dollar Equivalent
      of
      the aggregate amount of all Revolving Loans denominated in Foreign Currency
      exceeding $50,000,000, or (d) the Dollar Equivalent of the aggregate amount
      of
      all Revolving Loans to Subsidiary Borrowers which are Foreign Subsidiaries
      exceeding $50,000,000. Within the foregoing limits and subject to the terms
      and
      conditions set forth herein, the Borrowers may borrow, prepay and reborrow
      Revolving Loans.

     

    SECTION
      2.02.   Loans
      and Borrowings.
      (a)
      Each
      Revolving Loan shall be made as part of a Borrowing consisting of Revolving
      Loans made by the Lenders ratably in accordance with their respective
      Commitments. The failure of any Lender to make any Loan required to be made
      by
      it shall not relieve any other Lender of its obligations hereunder; provided
      that the
      Commitments of the Lenders are several and no Lender shall be responsible for
      any other Lender’s failure to make Loans as required.

     

    (b)  Subject
      to Section
      2.14,
      (i)
      each Revolving Borrowing denominated in Dollars shall be comprised entirely
      of
      ABR Loans or Eurocurrency Loans as the Company may request in accordance
      herewith and (ii) each Revolving Borrowing denominated in a Foreign Currency
      shall be comprised entirely of Eurocurrency Loans. Each Swingline Loan shall
      be
      an ABR Loan. Each Lender at its option may make any Eurocurrency Loan by causing
      any domestic or foreign branch or Affiliate of such Lender to make such Loan;
      provided
      that any
      exercise of such option shall not affect the obligation of the Applicable
      Borrower to repay such Loan in accordance with the terms of this
      Agreement.

     

    (c)  At
      the
      commencement of each Interest Period for any Eurocurrency Revolving Borrowing,
      such Borrowing shall be in an aggregate amount that is an integral multiple
      of
      $1,000,000 and not less than $5,000,000 At the time that each ABR Revolving
      Borrowing is made, such Borrowing shall be in an aggregate amount that is an
      integral multiple of $1,000,000 and not less than $1,000,000; provided
      that an
      ABR Revolving Borrowing may be in an aggregate amount that is equal to the
      entire unused balance of the total Commitments or that is required to finance
      the reimbursement of an LC Disbursement as contemplated by Section
      2.05(e).
      Each
      Swingline Loan shall be in an amount that is an integral multiple of $500,000
      and not less than $500,000. Borrowings of more than one Type and Class may
      be
      outstanding at the same time; provided that there shall not at any time be
      more
      than a total of 10 Eurocurrency

     

    
      
        21

      

      
         

        
          

        

      

      
         

      

    

    Revolving
      Borrowings outstanding. Notwithstanding the foregoing, Loans which are not
      denominated in Dollars may be made in amounts and increments in the applicable
      Foreign Currency satisfactory to the Administrative Agent.

     

    (d)  Notwithstanding
      any other provision of this Agreement, the Company shall not be entitled to
      request, or to elect to convert or continue, any Borrowing if the Interest
      Period requested with respect thereto would end after the Maturity
      Date.

     

    (e)  Notwithstanding
      any other provision of this Agreement, each Lender at its option may make any
      ABR Loan or Eurocurrency Loan by causing any domestic or foreign office, branch
      or Affiliate of such Lender (an “Applicable
      Lending Installation”)
      to
      make such Loan that has been designated by such Lender to the Administrative
      Agent. All terms of this Agreement shall apply to any such Applicable Lending
      Installation of such Lender and the Loans and any Notes issued hereunder shall
      be deemed held by each Lender for the benefit of any such Applicable Lending
      Installation. Each Lender may, by written notice to the Administrative Agent
      and
      the Company, designate replacement or additional Applicable Lending
      Installations through which Loans will be made by it and for whose account
      Loan
      payments are to be made.

     

    SECTION
      2.03.   Requests
      for Revolving Borrowings.
      To
      request a Revolving Borrowing, the Company shall notify the Administrative
      Agent
      of such request by telephone (a) in the case of a Eurocurrency Borrowing, not
      later than 12:00 noon, New York City time, (i) if the Applicable Borrower is
      a
      Foreign Subsidiary or the Borrowing is to be denominated in a Foreign Currency,
      four Business Days before the date of the proposed Borrowing, or (ii) otherwise,
      three Business Days before the date of the proposed Borrowing or (b) in the
      case
      of an ABR Borrowing, not later than 11:00 a.m., New York City time, (i) if
      the
      Applicable Borrower is a Foreign Subsidiary, one Business Day before the date
      of
      the proposed Borrowing or (ii) otherwise, on the date of the proposed Borrowing.
      Each such telephonic Borrowing Request shall be irrevocable and shall be
      confirmed promptly by hand delivery or telecopy to the Administrative Agent
      of a
      written Borrowing Request in a form approved by the Administrative Agent and
      signed by the Company. Each such telephonic and written Borrowing Request shall
      specify the following information in compliance with Section
      2.02:

     

    (i)  the
      identity of the Applicable Borrower;

     

    (ii)  the
      aggregate amount of the requested Borrowing;

     

    (iii)  the
      currency (which may be Dollars or a Foreign Currency) in which such Borrowing
      is
      to be denominated;

     

    (iv)  the
      date
      of such Borrowing, which shall be a Business Day;

     

    (v)  in
      the
      case of a Borrowing denominated in Dollars, whether such Borrowing is to be
      an
      ABR Borrowing or a Eurocurrency Borrowing;

     

    (vi)  in
      the
      case of a Eurocurrency Borrowing, the initial Interest Period to be applicable
      thereto, which shall be a period contemplated by clause (a) of the definition
      of
      the term “Interest Period”; and

     

    
      
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    (vii)  the
      location and number of the Applicable Borrower’s account to which funds are to
      be disbursed, which shall comply with the requirements of Section
      2.07.

     

    If
      no
      election as to the Type of Revolving Borrowing is specified, then the requested
      Revolving Borrowing shall be an ABR Borrowing, unless such Revolving Borrowing
      is denominated in a Foreign Currency, in which case such Revolving Borrowing
      shall be a Eurocurrency Borrowing. If no Interest Period is specified with
      respect to any requested Eurocurrency Revolving Borrowing, then the Company
      shall be deemed to have selected an Interest Period of one month’s duration.
      Promptly following receipt of a Borrowing Request in accordance with this
      Section, the Administrative Agent shall advise each Lender of the details
      thereof and of the amount of such Lender’s Loan to be made as part of the
      requested Borrowing. 

     

    SECTION
      2.04.   Swingline
      Loans.
      (a)
      Subject
      to the terms and conditions set forth herein, the Swingline Lender agrees to
      make Swingline Loans in Dollars to any Borrower which is not a Foreign
      Subsidiary from time to time during the Availability Period, in an aggregate
      principal amount at any time outstanding that will not result in (i) the
      aggregate principal amount of outstanding Swingline Loans exceeding $15,000,000,
      or (ii) the sum of the total Revolving Credit Exposures exceeding the total
      Commitments; provided
      that the
      Swingline Lender shall not be required to make a Swingline Loan to refinance
      an
      outstanding Swingline Loan. Within the foregoing limits and subject to the
      terms
      and conditions set forth herein, the Company may borrow, prepay and reborrow
      Swingline Loans.

     

    (b)  To
      request a Swingline Loan, the Company shall notify the Administrative Agent
      of
      such request by telephone (confirmed by telecopy), not later than 12:00 noon,
      New York City time, on the day of a proposed Swingline Loan in the case of
      Swingline Loans denominated in Dollars and not later than 10:00 a.m., Local
      Time
      on the day of any other proposed Swingline Loan. Each such notice shall be
      irrevocable and shall specify (i) the requested date (which shall be a Business
      Day), (ii) the amount of the requested Swingline Loan and (iii) the identity
      of
      the Applicable Borrower. The Administrative Agent will promptly advise the
      Swingline Lender of any such notice received from the Company. The Swingline
      Lender shall make each Swingline Loan available to the Company by means of
      a
      credit to the general deposit account of the Company with the Swingline Lender
      (or, in the case of a Swingline Loan made to finance the reimbursement of an
      LC
      Disbursement as provided in Section
      2.05(e),
      by
      remittance to the Issuing Bank) by 3:00 p.m., New York City time, on the
      requested date of such Swingline Loan.

     

    (c)  The
      Swingline Lender may by written notice given to the Administrative Agent not
      later than 10:00 a.m., New York City time, on any Business Day require the
      Lenders to acquire participations on such Business Day in all or a portion
      of
      the Swingline Loans outstanding. Such notice shall specify the aggregate amount
      of Swingline Loans in which Lenders will participate. Promptly upon receipt
      of
      such notice, the Administrative Agent will give notice thereof to each Lender,
      specifying in such notice such Lender’s Applicable Percentage of such Swingline
      Loan or Loans. Each Lender hereby absolutely and unconditionally agrees, upon
      receipt of notice as provided above, to pay to the Administrative Agent, for
      the
      account of the Swingline Lender, such Lender’s Applicable Percentage of such
      Swingline Loan or Loans. Each Lender acknowledges and agrees that its obligation
      to acquire participations in Swingline Loans pursuant to this paragraph is
      absolute and unconditional and 

     

    
      
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    shall
      not
      be affected by any circumstance whatsoever, including the occurrence and
      continuance of a Default or reduction or termination of the Commitments, and
      that each such payment shall be made without any offset, abatement, withholding
      or reduction whatsoever. Each Lender shall comply with its obligation under
      this
      paragraph by wire transfer of immediately available funds, in the same manner
      as
      provided in Section
      2.06
      with
      respect to Loans made by such Lender (and Section
      2.06
      shall
      apply, mutatis mutandis,
      to the
      payment obligations of the Lenders), and the Administrative Agent shall promptly
      pay to the Swingline Lender the amounts so received by it from the Lenders.
      The
      Administrative Agent shall notify the Company of any participations in any
      Swingline Loan acquired pursuant to this paragraph, and thereafter payments
      in
      respect of such Swingline Loan shall be made to the Administrative Agent and
      not
      to the Swingline Lender. Any amounts received by the Swingline Lender from
      the
      Company (or other party on behalf of the Company) in respect of a Swingline
      Loan
      after receipt by the Swingline Lender of the proceeds of a sale of
      participations therein shall be promptly remitted to the Administrative Agent;
      any such amounts received by the Administrative Agent shall be promptly remitted
      by the Administrative Agent to the Lenders that shall have made their payments
      pursuant to this paragraph and to the Swingline Lender, as their interests
      may
      appear; provided that any such payment so remitted shall be repaid to the
      Swingline Lender or to the Administrative Agent, as applicable, if and to the
      extent such payment is required to be refunded to the Company for any reason.
      The purchase of participations in a Swingline Loan pursuant to this paragraph
      shall not relieve the Company of any default in the payment thereof.

     

    SECTION
      2.05.   Letters
      of Credit.
      (a) General.
      Subject
      to the terms and conditions set forth herein, any Borrower may request the
      issuance of Letters of Credit denominated in Dollars for its own account, in
      a
      form reasonably acceptable to the Administrative Agent and the Issuing Bank,
      at
      any time and from time to time during the Availability Period. In the event
      of
      any inconsistency between the terms and conditions of this Agreement and the
      terms and conditions of any form of letter of credit application or other
      agreement submitted by such Borrower to, or entered into by such Borrower with,
      the Issuing Bank relating to any Letter of Credit, the terms and conditions
      of
      this Agreement shall control.

     

    (b)  Notice
      of Issuance, Amendment, Renewal, Extension; Certain Conditions.
      To
      request the issuance of a Letter of Credit (or the amendment, renewal or
      extension of an outstanding Letter of Credit), the Applicable Borrower shall
      hand deliver or telecopy (or transmit by electronic communication, if
      arrangements for doing so have been approved by the Issuing Bank) to the Issuing
      Bank and the Administrative Agent (reasonably in advance of the requested date
      of issuance, amendment, renewal or extension, but in any case notice given
      not
      later than 11:00 a.m., New York City time, three Business Days prior to such
      date shall be deemed to be sufficient) a notice requesting the issuance of
      a
      Letter of Credit, or identifying the Letter of Credit to be amended, renewed
      or
      extended, and specifying the date of issuance, amendment, renewal or extension
      (which shall be a Business Day), the date on which such Letter of Credit is
      to
      expire (which shall comply with paragraph (c) of this Section), the amount
      of
      such Letter of Credit, the name and address of the beneficiary thereof, and
      such
      other information as shall be necessary to prepare, amend, renew or extend
      such
      Letter of Credit. If requested by the Issuing Bank, the Applicable Borrower
      also
      shall submit a letter of credit application on the Issuing Bank’s standard form
      in connection with any request for a Letter of Credit. A Letter of Credit shall
      be issued, amended, renewed or extended only if (and upon issuance, amendment,
      renewal or extension of each Letter of Credit the Applicable Borrower shall
      be
      deemed to represent and 

     

    
      
        24

      

      
         

        
          

        

      

      
         

      

    

    warrant
      that), after giving effect to such issuance, amendment, renewal or extension
      (i)
      the LC Exposure shall not exceed $25,000,000 and (ii) the sum of the total
      Revolving Credit Exposures shall not exceed the total Commitments.

     

    (c)  Expiration
      Date.
      Each
      Letter of Credit shall expire at or prior to the close of business on the
      earlier of (i) the date one year after the date of the issuance of such Letter
      of Credit (or, in the case of any renewal or extension thereof, one year after
      such renewal or extension) and (ii) the date that is five Business Days prior
      to
      the Maturity Date; provided
      that
      with the prior consent of the Administrative Agent and the Issuing Bank, such
      Issuing Bank may issue or extend Evergreen Letters of Credit with a later
      expiration date so long as on the Maturity Date, whether or not an Event of
      Default exists, the Applicable Borrower shall deposit in an account with the
      Administrative Agent, in the name of the Administrative Agent and for the
      benefit of the Lenders, an amount in cash equal to the undrawn amount of all
      outstanding Evergreen Letters of Credit with an expiration date later than
      five
      Business Days prior to the Maturity Date. If the Applicable Borrower is required
      to provide an amount of cash collateral hereunder as a result of an approaching
      Maturity Date, such amount (to the extent not applied as aforesaid) shall be
      returned to such Borrower within three (3) Business Days after all Letters
      of
      Credit have expired and all related reimbursement obligations satisfied in
      full.

     

    (d)  Participations.
      By the
      issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing
      the amount thereof) and without any further action on the part of the Issuing
      Bank or the Lenders, the Issuing Bank hereby grants to each Lender, and each
      Lender hereby acquires from the Issuing Bank, a participation in such Letter
      of
      Credit equal to such Lender’s Applicable Percentage of the aggregate amount
      available to be drawn under such Letter of Credit. In consideration and in
      furtherance of the foregoing, each Lender hereby absolutely and unconditionally
      agrees to pay to the Administrative Agent, for the account of the Issuing Bank,
      such Lender’s Applicable Percentage of each LC Disbursement made by the Issuing
      Bank and not reimbursed by any Borrower on the date due as provided in paragraph
      (e) of this Section, or of any reimbursement payment required to be refunded
      to
      any Borrower for any reason. Each Lender acknowledges and agrees that its
      obligation to acquire participations pursuant to this paragraph in respect
      of
      Letters of Credit is absolute and unconditional and shall not be affected by
      any
      circumstance whatsoever, including any amendment, renewal or extension of any
      Letter of Credit or the occurrence and continuance of a Default or reduction
      or
      termination of the Commitments, and that each such payment shall be made without
      any offset, abatement, withholding or reduction whatsoever.

     

    (e)  Reimbursement.
      If the
      Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit,
      the Applicable Borrower shall reimburse such LC Disbursement by paying to the
      Administrative Agent an amount equal to such LC Disbursement not later than
      12:00 noon, New York City time, on the date that such LC Disbursement is made,
      if such Borrower shall have received notice of such LC Disbursement prior to
      10:00 a.m., New York City time, on such date, or, if such notice has not been
      received by such Borrower prior to such time on such date, then not later than
      12:00 noon, New York City time, on (i) the Business Day that such Borrower
      receives such notice, if such notice is received prior to 10:00 a.m., New York
      City time, on the day of receipt, or (ii) the Business Day immediately following
      the day that such Borrower receives such notice, if such notice is not received
      prior to such time on the day of receipt; provided
      that (i)
      if such LC Disbursement is not less than $1,000,000, the Applicable

     

    
      
        25

      

      
         

        
          

        

      

      
         

      

    

    Borrower
      may, subject to the conditions to borrowing set forth herein, request in
      accordance with Section
      2.03
      that
      such payment be financed with an ABR Revolving Borrowing and (ii) if such LC
      Disbursement is not less than $500,000, the Applicable Borrower (if not a
      Foreign Subsidiary) may, subject to the conditions to borrowing set forth
      herein, request in accordance with Section
      2.04
      that
      such payment be financed with a Swingline Loan, in each case, in an equivalent
      amount and, to the extent so financed, such Borrower’s obligation to make such
      payment shall be discharged and replaced by the resulting ABR Revolving
      Borrowing or Swingline Loan, as applicable. If the Applicable Borrower fails
      to
      make such payment when due, such amount shall bear interest at the Alternate
      Base Rate and the Administrative Agent shall notify each Lender of the
      applicable LC Disbursement, the payment then due from such Borrower in respect
      thereof and such Lender’s Applicable Percentage thereof. Promptly following
      receipt of such notice, each Lender shall pay to the Administrative Agent its
      Applicable Percentage of the payment then due from the Applicable Borrower,
      in
      the same manner as provided in Section
      2.06
      with
      respect to Loans made by such Lender (and Section
      2.06
      shall
      apply, mutatis mutandis,
      to the
      payment obligations of the Lenders), and the Administrative Agent shall promptly
      pay to the Issuing Bank the amounts so received by it from the Lenders. Promptly
      following receipt by the Administrative Agent of any payment from any Borrower
      pursuant to this paragraph, the Administrative Agent shall distribute such
      payment to the Issuing Bank or, to the extent that Lenders have made payments
      pursuant to this paragraph to reimburse the Issuing Bank, then to such Lenders
      and the Issuing Bank as their interests may appear. Any payment made by a Lender
      pursuant to this paragraph to reimburse the Issuing Bank for any LC Disbursement
      (other than the funding of ABR Revolving Loans or a Swingline Loan as
      contemplated above) shall not constitute a Loan and shall not relieve any
      Borrower of its obligation to reimburse such LC Disbursement.

     

    (f)  Obligations
      Absolute.
      Each
      Borrower’s obligation to reimburse LC Disbursements as provided in paragraph (e)
      of this Section shall be absolute, unconditional and irrevocable, and shall
      be
      performed strictly in accordance with the terms of this Agreement under any
      and
      all circumstances whatsoever and irrespective of (i) any lack of validity or
      enforceability of any Letter of Credit or this Agreement, or any term or
      provision therein, (ii) any draft or other document presented under a Letter
      of
      Credit proving to be forged, fraudulent or invalid in any respect or any
      statement therein being untrue or inaccurate in any respect, (iii) payment
      by
      the Issuing Bank under a Letter of Credit against presentation of a draft or
      other document that does not comply with the terms of such Letter of Credit,
      or
      (iv) any other event or circumstance whatsoever, whether or not similar to
      any
      of the foregoing, that might, but for the provisions of this Section, constitute
      a legal or equitable discharge of, or provide a right of setoff against, such
      Borrower’s obligations hereunder. Neither the Administrative Agent, the Lenders
      nor the Issuing Bank, nor any of their Related Parties, shall have any liability
      or responsibility by reason of or in connection with the issuance or transfer
      of
      any Letter of Credit or any payment or failure to make any payment thereunder
      (irrespective of any of the circumstances referred to in the preceding
      sentence), or any error, omission, interruption, loss or delay in transmission
      or delivery of any draft, notice or other communication under or relating to
      any
      Letter of Credit (including any document required to make a drawing thereunder),
      any error in interpretation of technical terms or any consequence arising from
      causes beyond the control of the Issuing Bank; provided
      that the
      foregoing shall not be construed to excuse the Issuing Bank from liability
      to
      any Borrower to the extent of any direct damages (as opposed to consequential
      damages, claims in respect of which are hereby waived by each Borrower to the
      extent permitted by applicable 

     

    
      
        26

      

      
         

        
          

        

      

      
         

      

    

    law)
      suffered by such Borrower that are caused by the Issuing Bank’s failure to
      exercise care when determining whether drafts and other documents presented
      under a Letter of Credit comply with the terms thereof. The parties hereto
      expressly agree that, in the absence of gross negligence or willful misconduct
      on the part of the Issuing Bank (as finally determined by a court of competent
      jurisdiction), the Issuing Bank shall be deemed to have exercised care in each
      such determination. In furtherance of the foregoing and without limiting the
      generality thereof, the parties agree that, with respect to documents presented
      which appear on their face to be in substantial compliance with the terms of
      a
      Letter of Credit, the Issuing Bank may, in its sole discretion, either accept
      and make payment upon such documents without responsibility for further
      investigation, regardless of any notice or information to the contrary, or
      refuse to accept and make payment upon such documents if such documents are
      not
      in strict compliance with the terms of such Letter of Credit.

     

    (g)  Disbursement
      Procedures.
      The
      Issuing Bank shall, promptly following its receipt thereof, examine all
      documents purporting to represent a demand for payment under a Letter of Credit.
      The Issuing Bank shall promptly notify the Administrative Agent and the
      Applicable Borrower by telephone (confirmed by telecopy) of such demand for
      payment and whether the Issuing Bank has made or will make an LC Disbursement
      thereunder; provided
      that any
      failure to give or delay in giving such notice shall not relieve any Borrower
      of
      its obligation to reimburse the Issuing Bank and the Lenders with respect to
      any
      such LC Disbursement.

     

    (h)  Interim
      Interest.
      If the
      Issuing Bank shall make any LC Disbursement, then, unless the Applicable
      Borrower shall reimburse such LC Disbursement in full on the date such LC
      Disbursement is made, the unpaid amount thereof shall bear interest, for each
      day from and including the date such LC Disbursement is made to but excluding
      the date that such Borrower reimburses such LC Disbursement, at the rate per
      annum then applicable to ABR Revolving Loans; provided
      that, if
      such Borrower fails to reimburse such LC Disbursement when due pursuant to
      paragraph (e) of this Section, then Section
      2.12(c)
      shall
      apply. Interest accrued pursuant to this paragraph shall be for the account
      of
      the Issuing Bank, except that interest accrued on and after the date of payment
      by any Lender pursuant to paragraph (e) of this Section to reimburse the Issuing
      Bank shall be for the account of such Lender to the extent of such
      payment.

     

    (i)  Replacement
      of the Issuing Bank.
      The
      Issuing Bank may be replaced at any time by written agreement among the Company,
      the Administrative Agent, the replaced Issuing Bank and the successor Issuing
      Bank. The Administrative Agent shall notify the Lenders of any such replacement
      of the Issuing Bank. At the time any such replacement shall become effective,
      the Borrowers shall pay all unpaid fees accrued for the account of the replaced
      Issuing Bank pursuant to Section
      2.11(b).
      From
      and after the effective date of any such replacement, (i) the successor Issuing
      Bank shall have all the rights and obligations of the Issuing Bank under this
      Agreement with respect to Letters of Credit to be issued thereafter and (ii)
      references herein to the term “Issuing Bank” shall be deemed to refer to such
      successor or to any previous Issuing Bank, or to such successor and all previous
      Issuing Banks, as the context shall require. After the replacement of an Issuing
      Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall
      continue to have all the rights and obligations of an Issuing Bank under this
      Agreement with respect to Letters of Credit issued by it prior to such
      replacement, but shall not be required to issue additional Letters of
      Credit.

     

    
      
        27

      

      
         

        
          

        

      

      
         

      

    

    (j)  Cash
      Collateralization.
      If any
      Event of Default shall occur and be continuing, on the Business Day that any
      Borrower receives notice from the Administrative Agent or the Required Lenders
      demanding the deposit of cash collateral pursuant to this paragraph, such
      Borrower shall deposit in an account with the Administrative Agent, in the
      name
      of the Administrative Agent and for the benefit of the Lenders, an amount in
      cash equal to the LC Exposure as of such date plus any accrued and unpaid
      interest thereon; provided
      that the
      obligation to deposit such cash collateral shall become effective immediately,
      and such deposit shall become immediately due and payable, without demand or
      other notice of any kind, upon the occurrence of any Event of Default with
      respect to such Borrower described in clause (h) or (i) of Article
      VII.
      Such
      deposit shall be held by the Administrative Agent as collateral for the payment
      and performance of the obligations of the Borrowers under this Agreement. The
      Administrative Agent shall have exclusive dominion and control, including the
      exclusive right of withdrawal, over such account. Other than any interest earned
      on the investment of such deposits, which investments shall be made at the
      option and sole discretion of the Administrative Agent and at the Borrowers’
risk and expense, such deposits shall not bear interest. Interest or profits,
      if
      any, on such investments shall accumulate in such account. Moneys in such
      account shall be applied by the Administrative Agent to reimburse the Issuing
      Bank for LC Disbursements for which it has not been reimbursed and, to the
      extent not so applied, shall be held for the satisfaction of the reimbursement
      obligations of the Borrowers for the LC Exposure at such time or, if the
      maturity of the Loans has been accelerated, be applied to satisfy other
      obligations of the Borrowers under this Agreement. If the Borrowers are required
      to provide an amount of cash collateral hereunder as a result of the occurrence
      of an Event of Default, such amount (to the extent not applied as aforesaid)
      shall be returned to the Borrowers within three Business Days after all Events
      of Default have been cured or waived.

     

    (k)  Evergreen
      Letters of Credit.
      The
      Lenders agree that, while an Evergreen LC is outstanding and prior to the
      Maturity Date, at the option of the Applicable Borrower and upon the written
      request of such Borrower received by the Issuing Bank (with a copy to the
      Administrative Agent) no more than fifty (50) days and at least twenty (20)
      days
      (or such shorter time as the Issuing Bank may agree in a particular instance)
      prior to the effective Non-Extension Date thereof, the Issuing Bank shall be
      entitled to authorize or permit the automatic extension of such Evergreen LC.
      Each such request from a Borrower for extension of an Evergreen LC shall be
      in
      writing and shall specify: (i) the Evergreen LC to be extended; (ii) the
      proposed effective date of extension of the Evergreen LC (which shall be a
      Business Day except to the extent it is the expiry date of the applicable
      Evergreen LC and no action of the Issuing Bank is required on such date); (iii)
      the revised expiry date of the Evergreen LC (which, subject to Section
      2.05(c),
      shall
      not be later than the earlier of (A) the date one year after the then effective
      expiry date of such Evergreen LC and (B) the date that is five Business Days
      prior to the Maturity Date); and (iv) such other matters as the Issuing Bank
      may
      reasonably require. The Issuing Bank shall be under no obligation to so extend
      or permit the extension of any Evergreen LC if the Issuing Bank would have
      no
      obligation as of the proposed effective date of extension to issue or amend
      such
      Evergreen LC in its extended form under the terms of this Agreement (including
      Section
      4.02).
      If as
      of the date twenty (20) days prior to the Non-Extension Date of any Evergreen
      LC
      the Issuing Bank would be entitled to authorize the extension of such Evergreen
      LC in accordance with this Section
      2.05(k)
      upon the
      request of a Borrower but the Issuing Bank shall not have received a request
      from such Borrower to cause or permit such extension or a written direction
      from
      such Borrower to not cause or permit such extension, such Borrower shall be
      deemed to

     

    
      
        28

      

      
         

        
          

        

      

      
         

      

    

    have
      delivered a request to cause the extension of such Letter of Credit. In
      addition, upon the direction of a Borrower for any Evergreen LC, the Issuing
      Bank shall give such notice as is necessary to prevent an automatic extension
      of
      the expiry date of such Evergreen LC; provided,
      however,
      that in
      no event shall the Issuing Bank have liability to any party thereto for its
      failure to give such notice if written direction to give such notice is received
      by the Issuing Bank less than twenty (20) days prior to the Non-Extension Date
      for such Evergreen LC. The Issuing Bank will provide to the Administrative
      Agent
      and the Applicable Borrower a copy of any notice of non-extension given to
      an
      Evergreen LC beneficiary pursuant to this Section.

     

    SECTION
      2.06.   Funding
      of Borrowings.
      (a)
      Each
      Lender shall make each Loan to be made by it hereunder on the proposed date
      thereof by wire transfer of immediately available funds by 12:00 noon, Local
      Time, to the account of the Administrative Agent most recently designated by
      it
      for such purpose by notice to the Lenders; provided
      that
      Swingline Loans shall be made as provided in Section
      2.04.
      The
      Administrative Agent will make such Loans available to the Applicable Borrower
      by promptly crediting the amounts so received, in like funds, to an account
      of
      the Applicable Borrower maintained with the Administrative Agent in New York
      City (or, in the case of Subsidiary Borrowers or Loans denominated in a Foreign
      Currency, in such other location as may be designated by the Administrative
      Agent) and designated by the Company in the applicable Borrowing Request;
      provided that ABR Revolving Loans made to finance the reimbursement of an LC
      Disbursement as provided in Section
      2.05(e)
      shall be
      remitted by the Administrative Agent to the Issuing Bank.

     

    (b)  Unless
      the Administrative Agent shall have received notice from a Lender prior to
      the
      proposed date of any Borrowing that such Lender will not make available to
      the
      Administrative Agent such Lender’s share of such Borrowing, the Administrative
      Agent may assume that such Lender has made such share available on such date
      in
      accordance with paragraph (a) of this Section and may, in reliance upon such
      assumption, make available to the Applicable Borrower a corresponding amount.
      In
      such event, if a Lender has not in fact made its share of the applicable
      Borrowing available to the Administrative Agent, then the applicable Lender
      and
      the Applicable Borrower severally agree to pay to the Administrative Agent
      forthwith on demand such corresponding amount with interest thereon, for each
      day from and including the date such amount is made available to the Applicable
      Borrower to but excluding the date of payment to the Administrative Agent,
      at
      (i) in the case of such Lender, (x) the greater of the Federal Funds Effective
      Rate and a rate determined by the Administrative Agent in accordance with
      banking industry rules on interbank compensation (in the case of a Borrowing
      denominated in Dollars) or (y) the rate reasonably determined by the
      Administrative Agent to be the cost to it of funding such amount (in the case
      of
      a Borrowing denominated in a Foreign Currency) or (ii) in the case of the
      Applicable Borrower, the interest rate applicable to such Borrowing;
provided,
      that
      any payment made by such Borrower shall be made without prejudice to any claim
      such Borrower may have against the Lender failing to make such payment to the
      Administrative Agent. If such Lender pays such amount to the Administrative
      Agent, then such amount shall constitute such Lender’s Loan included in such
      Borrowing. 

     

    SECTION
      2.07.   Interest
      Elections.
      (a)
      Each
      Revolving Borrowing initially shall be of the Type specified in the applicable
      Borrowing Request and, in the case of a Eurocurrency Revolving Borrowing, shall
      have an initial Interest Period as specified in such Borrowing Request.
      Thereafter, the Company may elect to convert such Borrowing to a different
      Type,
      in

     

    
      
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    the
      case
      of Borrowings denominated in Dollars, or to continue such Borrowing and, in
      the
      case of a Eurocurrency Revolving Borrowing, may elect Interest Periods therefor,
      all as provided in this Section. The Company may elect different options with
      respect to different portions of the affected Borrowing, in which case each
      such
      portion shall be allocated ratably among the Lenders holding the Loans
      comprising such Borrowing, and the Loans comprising each such portion shall
      be
      considered a separate Borrowing. This Section shall not apply to Swingline
      Borrowings, which may not be converted or continued.

     

    (b)  To
      make
      an election pursuant to this Section, the Company shall notify the
      Administrative Agent of such election by telephone by the time that a Borrowing
      Request would be required under Section
      2.03
      if the
      Company were requesting a Revolving Borrowing of the Type and denominated in
      the
      Foreign Currency resulting from such election to be made on the effective date
      of such election. Each such telephonic Interest Election Request shall be
      irrevocable and shall be confirmed promptly by hand delivery or telecopy to
      the
      Administrative Agent of a written Interest Election Request in a form approved
      by the Administrative Agent and signed by the Company.

     

    (c)  Each
      telephonic and written Interest Election Request shall specify the following
      information in compliance with Section
      2.02:

     

    (i)  the
      Borrowing to which such Interest Election Request applies and, if different
      options are being elected with respect to different portions thereof, the
      portions thereof to be allocated to each resulting Borrowing (in which case
      the
      information to be specified pursuant to clauses (iii) and (iv) below shall
      be
      specified for each resulting Borrowing);

     

    (ii)  the
      effective date of the election made pursuant to such Interest Election Request,
      which shall be a Business Day;

     

    (iii)  whether
      the resulting Borrowing is to be an ABR Borrowing or a Eurocurrency Borrowing;
      and

     

    (iv)  if
      the
      resulting Borrowing is a Eurocurrency Borrowing, the Interest Period to be
      applicable thereto after giving effect to such election, which shall be a period
      contemplated by the definition of the term “Interest Period”.

     

    If
      any
      such Interest Election Request requests a Eurocurrency Borrowing but does not
      specify an Interest Period, then the Company shall be deemed to have selected
      an
      Interest Period of one month’s duration.

     

    (d)  Promptly
      following receipt of an Interest Election Request, the Administrative Agent
      shall advise each Lender of the details thereof and of such Lender’s portion of
      each resulting Borrowing.

     

    (e)  If
      the
      Company fails to deliver a timely Interest Election Request with respect to
      a
      Eurocurrency Revolving Borrowing prior to the end of the Interest Period
      applicable thereto, then, unless such Borrowing is repaid as provided herein,
      at
      the end of such Interest Period such Borrowing shall be converted to an ABR
      Borrowing (unless such Borrowing is denominated in a

     

    
      
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    Foreign
      Currency, in which case such Borrowing shall be continued as a Eurocurrency
      Borrowing with an Interest Period of one month’s duration commencing on the last
      day of such Interest Period). Notwithstanding any contrary provision hereof,
      if
      an Event of Default has occurred and is continuing and the Administrative Agent,
      at the request of the Required Lenders, so notifies the Company, then, so long
      as an Event of Default is continuing (i) no outstanding Revolving Borrowing
      may
      be converted to or continued as a Eurocurrency Borrowing, (ii) unless repaid,
      each Eurocurrency Revolving Borrowing denominated in Dollars shall be converted
      to an ABR Borrowing at the end of the Interest Period applicable thereto, and
      (iii) unless repaid, each Eurocurrency Revolving Borrowing denominated in a
      Foreign Currency shall be continued as a Eurocurrency Revolving Borrowing with
      an Interest Period of one month’s duration.

     

    SECTION
      2.08.   Termination,
      Increase and Reduction of Commitments.
      (a)
      Unless
      previously terminated, the Commitments shall terminate on the Maturity
      Date.

     

    (b)  The
      Company may at any time terminate, or from time to time reduce, the Commitments;
      provided
      that (i)
      each reduction of the Commitments shall be in an amount that is an integral
      multiple of $1,000,000 and not less than $1,000,000 and (ii) the Company shall
      not terminate or reduce the Commitments if, after giving effect to any
      concurrent prepayment of the Loans in accordance with Section
      2.09,
      the sum
      of the Revolving Credit Exposures would exceed the total
      Commitments.

     

    (c)  The
      Company shall notify the Administrative Agent of any election to terminate
      or
      reduce the Commitments under paragraph (b) of this Section at least three
      Business Days prior to the effective date of such termination or reduction,
      specifying such election and the effective date thereof. Promptly following
      receipt of any notice, the Administrative Agent shall advise the Lenders of
      the
      contents thereof. Each notice delivered by the Company pursuant to this Section
      shall be irrevocable; provided
      that a
      notice of termination of the Commitments delivered by the Company may state
      that
      such notice is conditioned upon the effectiveness of other credit facilities,
      in
      which case such notice may be revoked by the Company (by notice to the
      Administrative Agent on or prior to the specified effective date) if such
      condition is not satisfied. Any termination or reduction of the Commitments
      shall be permanent. Each reduction of the Commitments shall be made ratably
      among the Lenders in accordance with their respective Commitments.

     

    (d)  On
      up to
      four occasions, the Company may, from time to time, at its option, seek to
      increase the total Commitments by up to an aggregate amount of $75,000,000
      (resulting in maximum total Commitments of $175,000,000) upon at least three
      (3)
      Business Days’ prior written notice (or at least ten (10) Business Days' prior
      written notice if there are any outstanding Loans denominated in a Foreign
      Currency) to the Administrative Agent, which notice shall specify the amount
      of
      any such increase and shall be delivered at a time when no Default has occurred
      and is continuing. After delivery of such notice, the Administrative Agent
      or
      the Company, in consultation with the Administrative Agent, may offer the
      increase (which may be declined by any Lender in its sole discretion) in the
      total Commitments on either a ratable basis to the Lenders or on a non pro-rata
      basis to one or more Lenders and/or to other Lenders or entities reasonably
      acceptable to the Administrative Agent and the Company. No increase in the
      total
      Commitments shall become effective until the existing or new Lenders extending
      such incremental Commitment amount and the Company shall have delivered to
      the
      Administrative

     

    
      
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    Agent
      a
      document in form reasonably satisfactory to the Administrative Agent pursuant
      to
      which any such existing Lender states the amount of its Commitment increase,
      any
      such new Lender states its Commitment amount and agrees to assume and accept
      the
      obligations and rights of a Lender hereunder and the Company accepts such
      incremental Commitments. The Lenders (new or existing) shall accept an
      assignment from the existing Lenders, and the existing Lenders shall make an
      assignment to the new or existing Lender accepting a new or increased
      Commitment, of a direct or participation interest in each then outstanding
      Loan
      and Letter of Credit such that, after giving effect thereto, all Revolving
      Credit Exposure hereunder is held ratably by the Lenders in proportion to their
      respective Commitments. Assignments pursuant to the preceding sentence shall
      be
      made in exchange for the principal amount assigned plus accrued and unpaid
      interest and facility and letter of credit fees. The Company shall make any
      payments under Section
      2.15
      resulting from such assignments. Any such increase of the total Commitments
      shall be subject to receipt by the Administrative Agent from the Company of
      such
      supplemental opinions, resolutions, certificates and other documents as the
      Administrative Agent may reasonably request. 

     

    SECTION
      2.09.   Repayment
      of Loans; Evidence of Debt.
      (a)
      Each
      Applicable Borrower hereby unconditionally promises to pay (i) to the
      Administrative Agent for the account of each Lender the then unpaid principal
      amount of each of its Revolving Loans on the Maturity Date, and (ii) to the
      Swingline Lender the then unpaid principal amount of each of its Swingline
      Loans
      on the earlier of the Maturity Date and the first date after such Swingline
      Loan
      is made that is the 15th or last day of a calendar month and is at least two
      Business Days after such Swingline Loan is made; provided that on each date
      that
      a Revolving Borrowing is made, the Company shall repay all Swingline Loans
      then
      outstanding.

     

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

     

    (c)  The
      Administrative Agent shall maintain accounts in which it shall record (i) the
      amount of each Loan made hereunder, the Class and Type thereof and the Interest
      Period applicable thereto, (ii) the amount of any principal or interest due
      and
      payable or to become due and payable from the Borrowers to each Lender hereunder
      and (iii) the amount of any sum received by the Administrative Agent hereunder
      for the account of the Lenders and each Lender’s share thereof.

     

    (d)  The
      entries made in the accounts maintained pursuant to paragraph (b) or (c) of
      this
      Section shall be prima facie
      evidence
      of the existence and amounts of the obligations recorded therein; provided
      that the
      failure of any Lender or the Administrative Agent to maintain such accounts
      or
      any error therein shall not in any manner affect the obligation of the Borrowers
      to repay the Loans in accordance with the terms of this Agreement.

     

    (e)  Any
      Lender may request that Loans made by it be evidenced by a promissory note.
      In
      such event, the Applicable Borrower shall prepare, execute and deliver to such
      Lender a promissory note payable to the order of such Lender (or, if requested
      by such Lender, to such Lender and its registered assigns) and in a form
      approved by the Administrative Agent.

     

    
      
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    Thereafter,
      the Loans evidenced by such promissory note and interest thereon shall at all
      times (including after assignment pursuant to Section
      9.04)
      be
      represented by one or more promissory notes in such form payable to the order
      of
      the payee named therein (or, if such promissory note is a registered note,
      to
      such payee and its registered assigns).

     

    (f)  If
      at any
      time the aggregate Revolving Credit Exposure of the Lenders exceeds the
      aggregate Commitments of the Lenders, the Company shall immediately prepay
      the
      Loans or the Company shall cause each Applicable Borrower to immediately prepay
      the Loans as to which it is the obligor in the amount of such excess. To the
      extent that, after the prepayment of all Loans an excess of the Revolving Credit
      Exposure over the aggregate Commitments still exists, the Company shall promptly
      cash collateralize or cause the Applicable Borrower to promptly cash
      collateralize the Letters of Credit in the manner described in Section
      2.06(j)
      in an
      amount sufficient to eliminate such excess.

     

    (g)
      The
      Administrative Agent will determine the aggregate LC Exposure and the Dollar
      Equivalent of each Loan on each Exchange Rate Date. If at any time the sum
      of
      such amounts exceeds the aggregate Commitments of the Lenders, the Company
      shall
      immediately prepay the Loans or the Company shall cause each Applicable Borrower
      to immediately prepay the Loans as to which it is the obligor in the amount
      of
      such excess. To the extent that, after the prepayment of all Loans an excess
      of
      the sum of such amounts over the aggregate Commitments still exists, the Company
      shall promptly cash collateralize or cause the Applicable Borrower to promptly
      cash collateralize the Letters of Credit in the manner described in Section
      2.06(j)
      in an
      amount sufficient to eliminate such excess.

    

     

    SECTION
      2.10.   Prepayment
      of Loans.
      (a)
      The
      Borrowers shall have the right at any time and from time to time to prepay
      any
      Borrowing in whole or in part, subject to prior notice in accordance with
      paragraph (b) of this Section.

     

    (b)  The
      Company shall notify the Administrative Agent (and, in the case of prepayment
      of
      a Swingline Loan, the Swingline Lender) by telephone (confirmed by telecopy)
      of
      any prepayment hereunder (i) in the case of prepayment of a Eurocurrency
      Revolving Borrowing denominated in a Foreign Currency, not later than 12:00
      noon, New York City time, four Business Days before the date of prepayment,
      (ii)
      in the case of prepayment of a Eurocurrency Revolving Borrowing denominated
      in
      Dollars, not later than 12:00 noon, New York City time, three Business Days
      before the date of prepayment, (iii) in the case of prepayment of an ABR
      Revolving Borrowing by a Borrower which is a Foreign Subsidiary, not later
      than
      11:00 a.m., New York City time, one Business Day before the date of prepayment
      or (iv) in the case of prepayment of an ABR Revolving Borrowing by a Borrower
      which is not a Foreign Subsidiary or of a Swingline Loan, not later than 12:00
      noon, New York City time, on the date of prepayment. Each such notice shall
      be
      irrevocable and shall specify the prepayment date and the principal amount
      of
      each Borrowing or portion thereof to be prepaid; provided
      that, if
      a notice of prepayment is given in connection with a conditional notice of
      termination of the Commitments as contemplated by Section
      2.09,
      then
      such notice of prepayment may be revoked if such notice of termination is
      revoked in accordance with Section
      2.09.
      Promptly following receipt of any such notice relating to a Revolving Borrowing,
      the Administrative Agent shall advise the Lenders of the contents thereof.
      Each
      partial prepayment of any Revolving Borrowing shall be

     

    
      
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    in
      an
      amount that would be permitted in the case of an advance of a Revolving
      Borrowing of the same Type as provided in Section
      2.02.
      Each
      prepayment of a Revolving Borrowing shall be applied ratably to the Loans
      included in the prepaid Borrowing. Prepayments shall be accompanied by accrued
      interest to the extent required by Section
      2.13.

     

    SECTION
      2.11.   Fees.
      (a)
      The
      Company agrees to pay to the Administrative Agent for the account of each Lender
      a facility fee, which shall accrue at the Applicable Rate on the daily amount
      of
      the Commitment of such Lender (whether used or unused) during the period from
      and including the Effective Date to but excluding the date on which such
      Commitment terminates; provided
      that, if
      such Lender continues to have any Revolving Credit Exposure after its Commitment
      terminates, then such facility fee shall continue to accrue on the daily amount
      of such Lender’s Revolving Credit Exposure from and including the date on which
      its Commitment terminates to but excluding the date on which such Lender ceases
      to have any Revolving Credit Exposure. Accrued facility fees shall be payable
      in
      arrears on the last day of March, June, September and December of each year
      and
      on the date on which the Commitments terminate, commencing on the first such
      date to occur after the date hereof; provided
      that any
      facility fees accruing after the date on which the Commitments terminate shall
      be payable on demand. All facility fees shall be computed on the basis of a
      year
      of 360 days and shall be payable for the actual number of days elapsed
      (including the first day but excluding the last day).

     

    (b)  Each
      Applicable Borrower agrees to pay (i) to the Administrative Agent for the
      account of each Lender a participation fee with respect to its participations
      in
      Letters of Credit as to which such Applicable Borrower is the obligor, which
      shall accrue at the same Applicable Rate used to determine the interest rate
      applicable to Eurocurrency Revolving Loans on the average daily amount of such
      Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed
      LC Disbursements) during the period from and including the Effective Date to
      but
      excluding the later of the date on which such Lender’s Commitment terminates and
      the date on which such Lender ceases to have any LC Exposure, and (ii) to the
      Issuing Bank a fronting fee, which shall accrue at the rate or rates per annum
      separately agreed upon between the Company and the Issuing Bank on the average
      daily amount of the LC Exposure (excluding any portion thereof attributable
      to
      unreimbursed LC Disbursements) during the period from and including the
      Effective Date to but excluding the later of the date of termination of the
      Commitments and the date on which there ceases to be any LC Exposure, as well
      as
      the Issuing Bank’s standard fees with respect to the issuance, amendment,
      renewal or extension of any Letter of Credit or processing of drawings
      thereunder. Participation fees and fronting fees accrued through and including
      the last day of March, June, September and December of each year shall be
      payable on the third Business Day following such last day, commencing on the
      first such date to occur after the Effective Date; provided
      that all
      such fees shall be payable on the date on which the Commitments terminate and
      any such fees accruing after the date on which the Commitments terminate shall
      be payable on demand. Any other fees payable to the Issuing Bank pursuant to
      this paragraph shall be payable within 10 days after demand. All participation
      fees and fronting fees shall be computed on the basis of a year of 360 days
      and
      shall be payable for the actual number of days elapsed (including the first
      day
      but excluding the last day).

     

    
      
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    (c)  The
      Company agrees to pay to the Administrative Agent, for its own account, fees
      payable in the amounts and at the times separately agreed upon between the
      Company and the Administrative Agent.

     

    (d)  All
      fees
      payable hereunder shall be paid on the dates due, in immediately available
      funds, to the Administrative Agent (or to the Issuing Bank, in the case of
      fees
      payable to it) for distribution, in the case of facility fees and participation
      fees, to the Lenders. Fees paid shall not be refundable under any
      circumstances.

     

    SECTION
      2.12.   Interest.
      (a)
      The
      Loans comprising each ABR Borrowing (including each Swingline Loan) shall bear
      interest at the Alternate Base Rate.

     

    (b)  The
      Loans
      comprising each Eurocurrency Borrowing shall bear interest at the Adjusted
      LIBO
      Rate for the Interest Period in effect for such Borrowing plus the Applicable
      Rate.

     

    (c)  Notwithstanding
      the foregoing, if any principal of or interest on any Loan or any fee or other
      amount payable by any of the Borrowers hereunder is not paid when due, whether
      at stated maturity, upon acceleration or otherwise, such overdue amount shall
      bear interest, after as well as before judgment, at a rate per annum equal
      to
      (i) in the case of overdue principal of any Loan, 2% plus the rate otherwise
      applicable to such Loan as provided in the preceding paragraphs of this Section
      or (ii) in the case of any other amount, 2% plus the rate applicable to ABR
      Loans as provided in paragraph (a) of this Section.

     

    (d)  Accrued
      interest on each Loan shall be payable in arrears on each Interest Payment
      Date
      for such Loan and upon termination of the Commitments; provided
      that (i)
      interest accrued pursuant to paragraph (c) of this Section shall be payable
      on
      demand, (ii) in the event of any repayment or prepayment of any Loan (other
      than
      a prepayment of an ABR Loan prior to the end of the Availability Period),
      accrued interest on the principal amount repaid or prepaid shall be payable
      on
      the date of such repayment or prepayment and (iii) in the event of any
      conversion of any Eurocurrency Loan prior to the end of the current Interest
      Period therefor, accrued interest on such Loan shall be payable on the effective
      date of such conversion.

     

    (e)  All
      interest hereunder shall be computed on the basis of a year of 360 days, except
      that (i) interest on Borrowings denominated in Sterling shall be computed on
      the
      basis of a year of 365 days, (ii) interest on Borrowings denominated in any
      other Foreign Currency for which it is required by applicable law or customary
      to compute interest on the basis of a year of 365 days or, if required by
      applicable law or customary, 366 days in a leap year, shall be computed on
      such
      basis, and (iii) interest computed by reference to the Alternate Base Rate
      at
      times when the Alternate Base Rate is based on the Prime Rate shall be computed
      on the basis of a year of 365 days (or 366 days in a leap year), and in each
      case shall be payable for the actual number of days elapsed (including the
      first
      day but excluding the last day). The applicable Alternate Base Rate or Adjusted
      LIBO Rate shall be determined by the Administrative Agent, and such
      determination shall be conclusive absent manifest error.

     

    SECTION
      2.13.   Alternate
      Rate of Interest.
      If
      prior to the commencement of any Interest Period for a Eurocurrency Borrowing
      denominated in any currency:

     

    
      
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    (a)  the
      Administrative Agent determines (which determination shall be conclusive absent
      manifest error) that adequate and reasonable means do not exist for ascertaining
      the Adjusted LIBO Rate for such Interest Period; or

     

    (b)  the
      Administrative Agent is advised by the Required Lenders that the Adjusted LIBO
      Rate for such Interest Period will not adequately and fairly reflect the cost
      to
      such Lenders (or Lender) of making or maintaining their Loans (or its Loan)
      included in such Borrowing for such Interest Period;

     

    then
      the
      Administrative Agent shall give notice thereof to the Company and the Lenders
      by
      telephone or telecopy as promptly as practicable thereafter and, until the
      Administrative Agent notifies the Company and the Lenders that the circumstances
      giving rise to such notice no longer exist, (i) any Interest Election Request
      that requests the conversion of any Revolving Borrowing to, or continuation
      of
      any Revolving Borrowing as, a Eurocurrency Borrowing denominated in such
      currency shall be ineffective and (ii) such Borrowing shall be converted to
      or
      continued as on the last day of the Interest Period applicable thereto (A)
      if
      such Borrowing is denominated in Dollars, an ABR Borrowing or (B) if such
      Borrowing is denominated in a Foreign Currency, as a Borrowing bearing interest
      at such rate as the Administrative Agent determines adequately reflects the
      costs to the Lenders of making or maintaining such Borrowing, and (ii) if any
      Borrowing Request requests a Eurocurrency Borrowing in such currency, such
      Borrowing shall be made as an ABR Borrowing (if such Borrowing is requested
      to
      be made in Dollars) or shall be made as a Borrowing bearing interest at such
      rate as the Administrative Agent determines adequately reflects the costs to
      the
      Lenders of making or maintaining such Borrowing. The Administrative Agent shall
      promptly advise the Company of any such alternative interest rate.

     

    SECTION
      2.14.   Increased
      Costs.
      (a)
      If any
      Change in Law shall:

     

    (i)  impose,
      modify or deem applicable any reserve, special deposit or similar requirement
      against assets of, deposits with or for the account of, or credit extended
      by,
      any Lender (except any such reserve requirement reflected in the Adjusted LIBO
      Rate) or the Issuing Bank; or

     

    (ii)  impose
      on
      any Lender or the Issuing Bank or the London interbank market any other
      condition affecting this Agreement or Eurocurrency Loans made by such Lender
      or
      any Letter of Credit or participation therein;

     

    and
      the
      result of any of the foregoing shall be to increase the cost to such Lender
      of
      making or maintaining any Eurocurrency Loan (or of maintaining its obligation
      to
      make any such Loan) or to increase the cost to such Lender or the Issuing Bank
      of participating in, issuing or maintaining any Letter of Credit or to reduce
      the amount of any sum received or receivable by such Lender or the Issuing
      Bank
      hereunder (whether of principal, interest or otherwise), then the Company will
      pay to such Lender or the Issuing Bank, as the case may be, such additional
      amount or amounts as will compensate such Lender or the Issuing Bank, as the
      case may be, for such additional costs incurred or reduction
      suffered.

     

    (b)  If
      any
      Lender or the Issuing Bank determines that any Change in Law regarding capital
      requirements has or would have the effect of reducing the rate of return on
      such

     

    
      
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    Lender’s
      or the Issuing Bank’s capital or on the capital of such Lender’s or the Issuing
      Bank’s holding company, if any, as a consequence of this Agreement or the Loans
      made by, or participations in Letters of Credit held by, such Lender, or the
      Letters of Credit issued by the Issuing Bank, to a level below that which such
      Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding
      company could have achieved but for such Change in Law (taking into
      consideration such Lender’s or the Issuing Bank’s policies and the policies of
      such Lender’s or the Issuing Bank’s holding company with respect to capital
      adequacy), then from time to time the Company will pay to such Lender or the
      Issuing Bank, as the case may be, such additional amount or amounts as will
      compensate such Lender or the Issuing Bank or such Lender’s or the Issuing
      Bank’s holding company for any such reduction suffered.

     

    (c)  A
      certificate of a Lender or the Issuing Bank setting forth the amount or amounts
      necessary to compensate such Lender or the Issuing Bank or its holding company,
      as the case may be, as specified in paragraph (a) or (b) of this Section shall
      be delivered to the Company and shall be conclusive absent manifest error.
      The
      Borrowers shall jointly and severally pay such Lender or the Issuing Bank,
      as
      the case may be, the amount shown as due on any such certificate within 10
      days
      after receipt thereof.

     

    (d)  Failure
      or delay on the part of any Lender or the Issuing Bank to demand compensation
      pursuant to this Section shall not constitute a waiver of such Lender’s or the
      Issuing Bank’s right to demand such compensation; provided
      that the
      Borrowers shall not be required to compensate a Lender or the Issuing Bank
      pursuant to this Section for any increased costs or reductions incurred more
      than 180 days prior to the date that such Lender or the Issuing Bank, as the
      case may be, notifies the Company of the Change in Law giving rise to such
      increased costs or reductions and of such Lender’s or the Issuing Bank’s
      intention to claim compensation therefor; provided further
      that, if
      the Change in Law giving rise to such increased costs or reductions is
      retroactive, then the 180-day period referred to above shall be extended to
      include the period of retroactive effect thereof.

     

    SECTION
      2.15.   Break
      Funding Payments.
      In the
      event of (a) the payment of any principal of any Eurocurrency Loan other than
      on
      the last day of an Interest Period applicable thereto (including as a result
      of
      an Event of Default), (b) the conversion of any Eurocurrency Loan other than
      on
      the last day of the Interest Period applicable thereto, (c) the failure to
      borrow, convert, continue or prepay any Eurocurrency Loan on the date specified
      in any notice delivered pursuant hereto (regardless of whether such notice
      may
      be revoked under Section
      2.10(b)
      and is
      revoked in accordance therewith) or (d) the assignment of any Eurocurrency
      Loan
      other than on the last day of the Interest Period applicable thereto as a result
      of a request by the Company pursuant to Section
      2.18,
      then,
      in any such event, the Applicable Borrower shall compensate each Lender for
      the
      loss, cost and expense attributable to such event. In the case of a Eurocurrency
      Loan, such loss, cost or expense to any Lender shall be deemed to include an
      amount determined by such Lender to be the excess, if any, of (i) the amount
      of
      interest which would have accrued on the principal amount of such Loan had
      such
      event not occurred, at the Adjusted LIBO Rate that would have been applicable
      to
      such Loan, for the period from the date of such event to the last day of the
      then current Interest Period therefor (or, in the case of a failure to borrow,
      convert or continue, for the period that would have been the Interest Period
      for
      such Loan), over (ii) the amount of interest which would accrue on such
      principal amount for such period at the interest rate which such Lender would
      bid were it to bid, at the commencement 

     

    
      
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    of
      such
      period, for dollar deposits of a comparable amount and period from other banks
      in the eurocurrency market. A certificate of any Lender setting forth any amount
      or amounts that such Lender is entitled to receive pursuant to this Section
      shall be delivered to the Company and shall be conclusive absent manifest error.
      The Applicable Borrower shall pay such Lender the amount shown as due on any
      such certificate within 10 days after receipt thereof.

     

    SECTION
      2.16.   Taxes.
      (a)
      Any and
      all payments by or on account of any obligation of any of the Borrowers
      hereunder shall be made free and clear of and without deduction for any
      Indemnified Taxes or Other Taxes; provided
      that if
      any of the Borrowers shall be required to deduct any Indemnified Taxes or Other
      Taxes from such payments, then (i) 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) the Administrative
      Agent, Lender or Issuing Bank (as the case may be) receives an amount equal
      to
      the sum it would have received had no such deductions been made, (ii) the
      Applicable Borrower shall make such deductions and (iii) the Applicable Borrower
      shall pay the full amount deducted to the relevant Governmental Authority in
      accordance with applicable law.

     

    (b)  In
      addition, the Applicable Borrower shall pay any Other Taxes to the relevant
      Governmental Authority in accordance with applicable law.

     

    (c)  The
      Applicable Borrower shall indemnify the Administrative Agent, each Lender and
      the Issuing Bank, within 10 days after written demand therefor, for the full
      amount of any Indemnified Taxes or Other Taxes paid by the Administrative Agent,
      such Lender or the Issuing Bank, as the case may be, on or with respect to
      any
      payment by or on account of any obligation of such Applicable Borrower hereunder
      (including Indemnified Taxes or Other Taxes imposed or asserted on or
      attributable to amounts payable under this Section) and any penalties, interest
      and reasonable expenses arising therefrom or with respect thereto, whether
      or
      not such Indemnified Taxes or Other Taxes were correctly or legally imposed
      or
      asserted by the relevant Governmental Authority. A certificate as to the amount
      of such payment or liability delivered to the Company by a Lender or the Issuing
      Bank, or by the Administrative Agent on its own behalf or on behalf of a Lender
      or the Issuing Bank, shall be conclusive absent manifest error.

     

    (d)  As
      soon
      as practicable after any payment of Indemnified Taxes or Other Taxes by the
      Applicable Borrower to a Governmental Authority, the Applicable Borrower shall
      deliver to the Administrative Agent the original or a certified copy of a
      receipt issued by such Governmental Authority evidencing such payment, a copy
      of
      the return reporting such payment or other evidence of such payment reasonably
      satisfactory to the Administrative Agent.

     

    (e)  Any
      Foreign Lender that is entitled to an exemption from or reduction of withholding
      tax under the law of the jurisdiction in which the Applicable Borrower is
      located, or any treaty to which such jurisdiction is a party, with respect
      to
      payments under this Agreement shall deliver to the Company (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
      or
      reasonably requested by the Company as will permit such payments to be made
      without withholding or at a reduced rate.

     

    
      
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    (f)  If
      the
      Administrative Agent or a Lender determines, in its sole discretion, that it
      has
      received a refund of any Taxes or Other Taxes as to which it has been
      indemnified by one of the Borrowers or with respect to which one of the
      Borrowers has paid additional amounts pursuant to this Section
      2.16,
      it
      shall pay over such refund to the Applicable Borrower (but only to the extent
      of
      indemnity payments made, or additional amounts paid, by the Applicable Borrower
      under this Section
      2.16
      with
      respect to the Taxes or Other Taxes giving rise to such refund), net of all
      out-of-pocket expenses of the Administrative Agent or such Lender and without
      interest (other than any interest paid by the relevant Governmental Authority
      with respect to such refund); provided, that the Applicable Borrower, upon
      the
      request of the Administrative Agent or such Lender, agrees to repay the amount
      paid over to the Applicable Borrower (plus any penalties, interest or other
      charges imposed by the relevant Governmental Authority) to the Administrative
      Agent or such Lender in the event the Administrative Agent or such Lender is
      required to repay such refund to such Governmental Authority. This Section
      shall
      not be construed to require the Administrative Agent or any Lender to make
      available its tax returns (or any other information relating to its taxes which
      it deems confidential) to any of the Borrowers or any other Person.

     

    SECTION
      2.17.   Payments
      Generally; Pro Rata Treatment; Sharing of Set-offs.
      (a)
      Each of
      the Borrowers shall make each payment required to be made by it hereunder
      (whether of principal, interest, fees or reimbursement of LC Disbursements,
      or
      of amounts payable under Section
      2.14,
      2.15
      or
2.16,
      or
      otherwise) prior to 2:00 p.m., New York City time, on the date when due, in
      immediately available funds, without set off or counterclaim. Any amounts
      received after such time on any date may, in the discretion of the
      Administrative Agent, be deemed to have been received on the next succeeding
      Business Day for purposes of calculating interest thereon. All such payments
      shall be made to the Administrative Agent at its offices at 270 Park Avenue,
      New
      York, New York, except payments to be made directly to the Issuing Bank or
      Swingline Lender as expressly provided herein and except that payments pursuant
      to Sections
      2.14,
      2.15,
      2.16
      and
9.03
      shall be
      made directly to the Persons entitled thereto. The Administrative Agent shall
      distribute any such payments received by it for the account of any other Person
      to the appropriate recipient promptly following receipt thereof. If any payment
      hereunder shall be due on a day that is not a Business Day, the date for payment
      shall be extended to the next succeeding Business Day, and, in the case of
      any
      payment accruing interest, interest thereon shall be payable for the period
      of
      such extension. All payments hereunder of (i) principal or interest in respect
      of any Loan shall be made in the currency in which such Loan is denominated,
      (ii) reimbursement obligations shall be made in the currency in which the Letter
      of Credit in respect of which such reimbursement obligation exists is
      denominated or (iii) any other amount due hereunder or under another Loan
      Document shall be made in Dollars. Any payment required to be made by the
      Administrative Agent hereunder shall be deemed to have been made by the time
      required if the Administrative Agent shall at or before such time, have taken
      the necessary steps to make such payment in accordance with the regulations
      or
      operating procedures of the clearing or settlement system used by the
      Administrative Agent to make such payment.

     

    (b)  If
      at any
      time insufficient funds are received by and available to the Administrative
      Agent to pay fully all amounts of principal, unreimbursed LC Disbursements,
      interest and fees then due hereunder, such funds shall be applied (i) first,
      towards payment of interest and fees then due hereunder, ratably among the
      parties entitled thereto in accordance with the amounts of interest and fees
      then due to such parties, and (ii) second, towards payment of principal and
      unreimbursed LC Disbursements then due hereunder, ratably among the parties
      entitled thereto in accordance

     

    
      
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    with
      the
      amounts of principal and unreimbursed LC Disbursements then due to such
      parties.

     

    (c)  If
      any
      Lender shall, by exercising any right of set off or counterclaim or otherwise,
      obtain payment in respect of any principal of or interest on any of its
      Revolving Loans or participations in LC Disbursements or Swingline Loans
      resulting in such Lender receiving payment of a greater proportion of the
      aggregate amount of its Revolving Loans and participations in LC Disbursements
      and Swingline Loans and accrued interest thereon than the proportion received
      by
      any other Lender, then the Lender receiving such greater proportion shall
      purchase (for cash at face value) participations in the Revolving Loans and
      participations in LC Disbursements and Swingline Loans of other Lenders to
      the
      extent necessary so that the benefit of all such payments shall be shared by
      the
      Lenders ratably in accordance with the aggregate amount of principal of and
      accrued interest on their respective Revolving Loans and participations in
      LC
      Disbursements and Swingline Loans; provided
      that (i)
      if any such participations are purchased and all or any portion of the payment
      giving rise thereto is recovered, such participations shall be rescinded and
      the
      purchase price restored to the extent of such recovery, without interest, and
      (ii) the provisions of this paragraph shall not be construed to apply to any
      payment made by any of the Borrowers pursuant to and in accordance with the
      express terms of this Agreement or any payment obtained by a Lender as
      consideration for the assignment of or sale of a participation in any of its
      Loans or participations in LC Disbursements to any assignee or participant,
      other than to the Company or any Subsidiary or Affiliate thereof (as to which
      the provisions of this paragraph shall apply). Each of the Borrowers consents
      to
      the foregoing and agrees, to the extent it may effectively do so under
      applicable law, that any Lender acquiring a participation pursuant to the
      foregoing arrangements may exercise against such Applicable Borrower rights
      of
      set-off and counterclaim with respect to such participation as fully as if
      such
      Lender were a direct creditor of the Applicable Borrower in the amount of such
      participation.

     

    (d)  Unless
      the Administrative Agent shall have received notice from the Applicable Borrower
      prior to the date on which any payment is due to the Administrative Agent for
      the account of the Lenders or the Issuing Bank hereunder that the Applicable
      Borrower will not make such payment, the Administrative Agent may assume that
      the Applicable Borrower has made such payment on such date in accordance
      herewith and may, in reliance upon such assumption, distribute to the Lenders
      or
      the Issuing Bank, as the case may be, the amount due. In such event, if the
      Applicable Borrower has not in fact made such payment, then each of the Lenders
      or the Issuing Bank, as the case may be, severally agrees to repay to the
      Administrative Agent forthwith on demand the amount so distributed to such
      Lender or Issuing Bank with interest thereon, for each day from and including
      the date such amount is distributed to it to but excluding the date of payment
      to the Administrative Agent, (i) at the greater of the Federal Funds Effective
      Rate and a rate determined by the Administrative Agent in accordance with
      banking industry rules on interbank compensation (in the case of an amount
      denominated in Dollars) and (ii) the rate reasonably determined by the
      Administrative Agent to be the cost to it of funding such amount (in the case
      of
      an amount denominated in a Foreign Currency).

     

    
      
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    (e)  If
      any
      Lender shall fail to make any payment required to be made by it pursuant to
      Section
      2.04(c),
      2.05(d)
      or
(e),
      2.06(b),
      2.17(d)
      or
9.03(c),
      then
      the Administrative Agent may, in its discretion (notwithstanding any contrary
      provision hereof), apply any amounts thereafter received by the Administrative
      Agent for the account of such Lender to satisfy such Lender’s obligations under
      such Sections until all such unsatisfied obligations are fully
      paid.

     

    SECTION
      2.18.   Mitigation
      Obligations; Replacement of Lenders.
      (a)
      If any
      Lender requests compensation under Section
      2.14,
      or if
      any of the Borrowers is required to pay any additional amount to any Lender
      or
      any Governmental Authority for the account of any Lender pursuant to
Section
      2.16
      or
2.20,
      then
      such Lender shall use reasonable efforts to designate a different lending office
      for funding or booking its Loans hereunder or to assign its rights and
      obligations hereunder to another of its offices, branches or affiliates, if,
      in
      the judgment of such Lender, such designation or assignment (i) would eliminate
      or reduce amounts payable pursuant to Section
      2.14,
      2.16
      or
2.20,
      as the
      case may be, in the future and (ii) would not subject such Lender to any
      unreimbursed cost or expense and would not otherwise be disadvantageous to
      such
      Lender. Each Lender also agrees to use its commercially reasonable efforts
      to
      make such designation or assignment prior to the occurrence of any circumstance
      described in Section
      2.14,
      2.16
      or
2.20
      in the
      event it has knowledge of such circumstance prior to its occurrence or as soon
      thereafter as it becomes aware thereof. Each Borrower hereby agrees to pay
      all
      reasonable costs and expenses incurred by any Lender in connection with any
      such
      designation or assignment.

     

    (b)  If
      any
      Lender requests compensation under Section
      2.14,
      or if
      any of the Borrowers is required to pay any additional amount to any Lender
      or
      any Governmental Authority for the account of any Lender pursuant to
Section
      2.16
      or
2.20,
      or if
      any Lender defaults in its obligation to fund Loans hereunder, then the Company
      may, at its sole expense and effort, upon notice to such Lender and the
      Administrative Agent, require such Lender to assign and delegate, without
      recourse (in accordance with and subject to the restrictions contained in
Section
      9.04),
      all
      its interests, rights and obligations under this Agreement to an assignee that
      shall assume such obligations (which assignee may be another Lender, if a Lender
      accepts such assignment); provided
      that (i)
      the Company shall have received the prior written consent of the Administrative
      Agent (and if a Commitment is being assigned, the Issuing Bank), which consent
      shall not unreasonably be withheld, (ii) such Lender shall have received payment
      of an amount equal to the outstanding principal of its Loans and participations
      in LC Disbursements and Swingline Loans, accrued interest thereon, accrued
      fees
      and all other amounts payable to it hereunder, from the assignee (to the extent
      of such outstanding principal and accrued interest and fees) or the Company
      (in
      the case of all other amounts) and (iii) in the case of any such assignment
      resulting from a claim for compensation under Section
      2.14
      or
      payments required to be made pursuant to Section
      2.16
      or
2.20,
      such
      assignment will result in a reduction in such compensation or payments. A Lender
      shall not be required to make any such assignment and delegation if, prior
      thereto, as a result of a waiver by such Lender or otherwise, the circumstances
      entitling the Company to require such assignment and delegation cease to
      apply.

     

    SECTION
      2.19.   Designation
      of Subsidiary Borrowers.
      The
      Company may at any time and from time to time designate any Subsidiary as a
      Subsidiary Borrower by delivery to the Administrative Agent of a Borrowing
      Subsidiary Agreement executed by such Subsidiary and the Company and the
      satisfaction of the other conditions precedent set forth in Section
      4.03,
      and

     

    
      
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    upon
      such
      delivery and satisfaction such Subsidiary shall for all purposes of this
      Agreement be a Subsidiary Borrower and a party to this Agreement until the
      Company shall have executed and delivered to the Administrative Agent a
      Borrowing Subsidiary Termination with respect to such Subsidiary, whereupon
      such
      Subsidiary shall cease to be a Subsidiary Borrower and a party to this
      Agreement; provided,
      that no
      Foreign Subsidiary may act as a Subsidiary Borrower unless approved by the
      Administrative Agent. Notwithstanding the preceding sentence, no Borrowing
      Subsidiary Termination will become effective as to any Subsidiary Borrower
      at a
      time when any principal of or interest on any Loan to such Borrower shall be
      outstanding hereunder, provided
      that
      such Borrowing Subsidiary Termination shall be effective to terminate the right
      of such Subsidiary Borrower to make further Borrowings under this Agreement.
      As
      soon as practicable upon receipt of a Borrowing Subsidiary Agreement, the
      Administrative Agent shall furnish a copy thereof to each Lender.

     

    SECTION
      2.20.   Additional
      Reserve Costs.
      (a) For
      so long as any Lender is required to make special deposits with the Bank of
      England or comply with reserve assets, liquidity, cash margin or other
      requirements of the Bank of England, to maintain reserve asset ratios or to
      pay
      fees, in each case in respect of such Lender’s Eurocurrency Loans or Swingline
      Foreign Currency Loans, such Lender shall be entitled to require the Applicable
      Borrower to pay, contemporaneously with each payment of interest on each of
      such
      Loans, additional interest on such Loan at a rate per annum equal to the
      Mandatory Costs Rate calculated in accordance with the formula and in the manner
      set forth in Exhibit
      C
      hereto.

     

    (b)
      For
      so long as any Lender is required to comply with reserve assets, liquidity,
      cash
      margin or other requirements of any monetary or other authority (including
      any
      such requirement imposed by the European Central Bank or the European System
      of
      Central Banks, but excluding requirements reflected in the Statutory Reserve
      Rate or the Mandatory Costs Rate) in respect of any of such Lender’s
      Eurocurrency Loans and Swingline Foreign Currency Loans, such Lender shall
      be
      entitled to require the Applicable Borrower to pay, contemporaneously with
      each
      payment of interest on each of such Lender’s Loans subject to such requirements,
      additional interest on such Loan at a rate per annum specified by such Lender
      to
      be the cost to such Lender of complying with such requirements in relation
      to
      such Loan.

    

    (c)
      Any
      additional interest owed pursuant to paragraph (a) or (b) above shall be
      determined by the applicable Lender, which determination shall be conclusive
      absent manifest error, and notified to the Applicable Borrower (with a copy
      to
      the Administrative Agent) as soon as reasonably practical, but in no event
      later
      than five Business Days before each date on which interest is payable for the
      applicable Loan, and such additional interest so notified to the Applicable
      Borrower by such Lender shall be payable to the Administrative Agent for the
      account of such Lender on each date on which interest is payable for such
      Loan.

    

     

    ARTICLE
      III  

     

    Representations
      and Warranties

     

    The
      Company represents and warrants to the Administrative Agent and the Lenders
      that:

     

    
      
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    SECTION
      3.01.   Organization;
      Powers.
      Each of
      the Company and each of its Subsidiaries is duly organized, validly existing
      and
      in good standing under the laws of the jurisdiction of its organization, has
      all
      requisite power and authority to carry on its business as now conducted and,
      except where the failure to do so, individually or in the aggregate, could
      not
      reasonably be expected to result in a Material Adverse Effect, is qualified
      to
      do business in, and is in good standing in, every jurisdiction where such
      qualification is required.

     

    SECTION
      3.02.   Authorization;
      Enforceability.
      The
      Transactions are within the Borrowers’ corporate powers and have been duly
      authorized by all necessary corporate and, if required, stockholder action.
      This
      Agreement has been duly executed and delivered by the Borrowers and constitutes
      a legal, valid and binding obligation of the Borrowers, enforceable in
      accordance with its terms, subject to applicable bankruptcy, insolvency,
      reorganization, moratorium or other laws affecting creditors’ rights generally
      and subject to general principles of equity, regardless of whether considered
      in
      a proceeding in equity or at law.

     

    SECTION
      3.03.   Governmental
      Approvals; No Conflicts.
      The
      Transactions (a) do not require any consent or approval of, registration or
      filing with, or any other action by, any Governmental Authority, except such
      as
      have been obtained or made and are in full force and effect, (b) will not
      violate any applicable law or regulation or the charter, by-laws or other
      organizational documents of the Company or any of its Subsidiaries or any order
      of any Governmental Authority, (c) will not violate or result in a default
      under
      any indenture, agreement or other instrument binding upon the Company or any
      of
      its Subsidiaries or its assets, or give rise to a right thereunder to require
      any payment to be made by the Company or any of its Subsidiaries, and (d) will
      not result in the creation or imposition of any Lien on any asset of the Company
      or any of its Subsidiaries.

     

    SECTION
      3.04.   Financial
      Condition; No Material Adverse Change.
      (a)
      The
      Company has heretofore furnished to the Lenders its consolidated balance sheet
      and statements of income, stockholders equity and cash flows (i) as of and
      for
      the fiscal year ended December 31, 2005, reported on by KPMG LLP, independent
      public accountants, and (ii) as of and for the fiscal quarter and the portion
      of
      the fiscal year ended March 31, 2006, certified by its chief financial officer.
      Such financial statements present fairly, in all material respects, the
      financial position and results of operations and cash flows of the Company
      and
      its consolidated Subsidiaries as of such dates and for such periods in
      accordance with GAAP, subject to year end audit adjustments and the absence
      of
      footnotes in the case of the statements referred to in clause (ii)
      above.

     

    (b)  Since
      December 31, 2005, there has been no material adverse change in the business,
      assets, operations, prospects or condition, financial or otherwise, of the
      Company and its Subsidiaries, taken as a whole.

     

    SECTION
      3.05.   Properties.
      (a)
      Each of
      the Company and its Subsidiaries has good title to, or valid leasehold interests
      in, all its real and personal property material to its business, except for
      minor defects in title that do not interfere with its ability to conduct its
      business as currently conducted or to utilize such properties for their intended
      purposes.

     

    
      
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    (b)  Each
      of
      the Company and its Subsidiaries owns, or is licensed to use, all trademarks,
      tradenames, copyrights, patents and other intellectual property material to
      its
      business, and the use thereof by the Company and its Subsidiaries does not
      infringe upon the rights of any other Person, except for any such infringements
      that, individually or in the aggregate, could not reasonably be expected to
      result in a Material Adverse Effect.

     

    SECTION
      3.06.   Litigation
      and Environmental Matters.
      (a)
      There
      are no actions, suits or proceedings by or before any arbitrator or Governmental
      Authority pending against or, to the knowledge of the Company, threatened
      against or affecting the Company or any of its Subsidiaries (i) as to which
      there is a reasonable possibility of an adverse determination and that, if
      adversely determined, could reasonably be expected, individually or in the
      aggregate, to result in a Material Adverse Effect (other than the Disclosed
      Matters) or (ii) that involve this Agreement or the Transactions.

     

    (b)  Except
      for the Disclosed Matters and except with respect to any other matters that,
      individually or in the aggregate, could not reasonably be expected to result
      in
      a Material Adverse Effect, neither the Company nor any of its Subsidiaries
      (i)
      has failed to comply with any Environmental Law or to obtain, maintain or comply
      with any permit, license or other approval required under any Environmental
      Law,
      (ii) has become subject to any Environmental Liability, (iii) has received
      notice of any claim with respect to any Environmental Liability or (iv) knows
      of
      any basis for any Environmental Liability.

     

    (c)  Since
      the
      date of this Agreement, there has been no change in the status of the Disclosed
      Matters that, individually or in the aggregate, has resulted in, or could
      reasonably be expected to result in, a Material Adverse Effect.

     

    SECTION
      3.07.   Compliance
      with Laws and Agreements.
      Each of
      the Company and each of its Subsidiaries is in compliance with all laws,
      regulations and orders of any Governmental Authority applicable to it or its
      property and all indentures, agreements and other instruments binding upon
      it or
      its property, except where the failure to do so, individually or in the
      aggregate, could not reasonably be expected to result in a Material Adverse
      Effect. No Default has occurred and is continuing.

     

    SECTION
      3.08.   Investment
      and Holding Company Status.
      Neither
      the Company nor any of its Subsidiaries is (a) an “investment company” as
      defined in, or subject to regulation under, the Investment Company Act of 1940
      or (b) a “holding company” as defined in, or subject to regulation under, the
      Public Utility Holding Company Act of 2005.

     

    SECTION
      3.09.   Taxes.
      Each of
      the Company and each of its Subsidiaries has timely filed or caused to be filed
      all Tax returns and reports required to have been filed and has paid or caused
      to be paid all Taxes required to have been paid by it, except (a) Taxes that
      are
      being contested in good faith by appropriate proceedings and for which the
      Company or such Subsidiary, as applicable, has set aside on its books adequate
      reserves or (b) to the extent that the failure to do so could not reasonably
      be
      expected to result in a Material Adverse Effect.

     

    SECTION
      3.10.   ERISA.
      No
      ERISA Event has occurred or is reasonably expected to occur that, when taken
      together with all other such ERISA Events for which liability 

     

    
      
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    is
      reasonably expected to occur, could reasonably be expected to result in a
      Material Adverse Effect. The present value of all accumulated benefit
      obligations under each Plan (based on the assumptions used for purposes of
      Statement of Financial Accounting Standards No. 87) did not, as of the date
      of
      the most recent financial statements reflecting such amounts, exceed by more
      than $5,000,000 the fair market value of the assets of such Plan, and the
      present value of all accumulated benefit obligations of all underfunded Plans
      (based on the assumptions used for purposes of Statement of Financial Accounting
      Standards No. 87) did not, as of the date of the most recent financial
      statements reflecting such amounts, exceed by more than $10,000,000 the fair
      market value of the assets of all such underfunded Plans.

     

    SECTION
      3.11.   Disclosure.
      The
      Company has disclosed to the Lenders all agreements, instruments and corporate
      or other restrictions to which it or any of its Subsidiaries is subject, and
      all
      other matters known to it, that, individually or in the aggregate, could
      reasonably be expected to result in a Material Adverse Effect. Neither the
      Information Memorandum nor any of the other reports, financial statements,
      certificates or other information furnished by or on behalf of the Company
      to
      the Administrative Agent or any Lender in connection with the negotiation of
      this Agreement or delivered hereunder (as modified or supplemented by other
      information so furnished) contains any material misstatement of fact or omits
      to
      state any material fact necessary to make the statements therein, in the light
      of the circumstances under which they were made, not misleading; provided
      that,
      with respect to projected financial information, the Company represents only
      that such information was prepared in good faith based upon assumptions believed
      to be reasonable at the time.

     

    SECTION
      3.12.   Subsidiaries.
      As of
      the Effective Date, the Company has no Subsidiaries other than those
      Subsidiaries listed on Schedule
      3.12.
      Schedule
      3.12
      correctly sets forth, as of the Effective Date, (i) the percentage ownership
      (direct or indirect) of the Company in each class of capital stock or other
      equity of its Subsidiaries and also identifies the direct owner thereof, and
      (ii) the jurisdiction of organization of each such Subsidiary. Schedule
      3.12
      correctly identifies those Subsidiaries which constitute Material Subsidiaries
      as of the Effective Date.

     

    SECTION
      3.13.   Regulation
      U.
      Margin
      stock (as defined in Regulation U of the Board of Governors of the Federal
      Reserve System) constitutes less than 25% of the value of those assets of the
      Company and its Subsidiaries which are subject to any limitation on sale,
      pledge, or other restriction hereunder. Neither the making of any Loan or
      issuance of any Letters of Credit hereunder, the use of the proceeds thereof,
      nor any other aspect of the financing of the Acquisition, will violate or be
      inconsistent with the provisions of Regulation T, Regulation U or Regulation
      X
      of the Board of Governors of the Federal Reserve System.

     

        
      ARTICLE IV  

     

    Conditions

     

    SECTION
      4.01.   Effective
      Date.
      The
      obligations of the Lenders to make Loans and of the Issuing Bank to issue
      Letters of Credit hereunder shall not become effective until the date on which
      each of the following conditions is satisfied (or waived in accordance with
      Section
      9.02):

     

    
      
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    (a)  The
      Administrative Agent (or its counsel) shall have received from each party to
      any
      Credit Document either (i) a counterpart of each Credit Document to which it
      is
      a party signed on behalf of such party or (ii) written evidence satisfactory
      to
      the Administrative Agent (which may include telecopy transmission of a signed
      signature page of such Credit Document) that such party has signed a counterpart
      of.

     

    (b)  The
      Administrative Agent shall have received a favorable written opinion (addressed
      to the Administrative Agent and the Lenders and dated the Effective Date) of
      Oppenheimer Wolff & Donnelly LLP, counsel for the Borrowers and the
      Subsidiary Guarantors, covering such matters relating to the Borrowers, the
      Subsidiary Guarantors, the Credit Documents or the Transactions as the Required
      Lenders shall reasonably request. The Borrowers hereby request such counsel
      to
      deliver such opinion.

     

    (c)  The
      Administrative Agent shall have received such documents and certificates as
      the
      Administrative Agent or its counsel may reasonably request relating to the
      organization, existence and good standing of the Borrowers and the Subsidiary
      Guarantors, the authorization of the Transactions and any other legal matters
      relating to the Borrowers, the Subsidiary Guarantors, the Credit Documents
      or
      the Transactions, all in form and substance satisfactory to the Administrative
      Agent and its counsel.

     

    (d)  The
      Administrative Agent shall have received a certificate, dated the Effective
      Date
      and signed by the President, a Vice President or a Financial Officer of the
      Company, confirming compliance with the conditions set forth in paragraphs
      (a)
      and (b) of Section
      4.02.

     

    (e)  The
      Administrative Agent shall have received all fees and other amounts due and
      payable on or prior to the Effective Date, including, to the extent invoiced,
      reimbursement or payment of all out of pocket expenses required to be reimbursed
      or paid by the Company hereunder.

     

    (f)  The
      Administrative Agent shall have received, if applicable, a Borrowing Subsidiary
      Agreement for any Subsidiary Borrower being designated as such as of the
      Effective Date.

     

    (g)  The
      total
      commitments under the Company’s May 23, 2003 Credit Agreement with Bank
      of
      America, N.A.
      shall
      have been terminated, all loans thereunder shall have been repaid in full,
      together with interest thereon, all letters of credit, if any, issued thereunder
      shall have been terminated and all other amounts owing pursuant to thereto
      and
      all agreements related thereto shall have been repaid in full, all such
      agreements shall have been terminated on terms and conditions satisfactory
      to
      the Administrative Agent and be of no further force or effect, and the
      Administrative Agent shall have received a payoff letter in form and substance
      acceptable to the Administrative Agent from Bank of America, N.A. to such
      effect.

     

    The
      Administrative Agent shall notify the Company and the Lenders of the Effective
      Date, and such notice shall be conclusive and binding. Notwithstanding the
      foregoing, the obligations of the Lenders to make Loans and of the Issuing
      Bank
      to issue Letters of Credit hereunder shall not become effective unless each
      of
      the foregoing conditions is satisfied (or waived pursuant to

     

    
      
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    Section
      9.02)
      at or
      prior to 3:00 p.m., New York City time, on June 30, 2006 (and, in the event
      such
      conditions are not so satisfied or waived, the Commitments shall terminate
      at
      such time).

     

    SECTION
      4.02.   Each
      Credit Event.
      The
      obligation of each Lender to make a Loan on the occasion of any Borrowing (other
      than any Borrowing the proceeds of which are used exclusively to repay a
      Borrowing of the same amount), and of the Issuing Bank to issue, amend, renew
      or
      extend any Letter of Credit, is subject to the satisfaction of the following
      conditions:

     

    (a)  The
      representations and warranties of the Company set forth in this Agreement shall
      be true and correct on and as of the date of such Borrowing or the date of
      issuance, amendment, renewal or extension of such Letter of Credit, as
      applicable (except any such representation or warranty that expressly relates
      to
      or is made expressly as of a specific earlier date, in which case such
      representation or warranty shall be true and correct with respect to or as
      of
      such specific earlier date).

     

    (b)  At
      the
      time of and immediately after giving effect to such Borrowing or the issuance,
      amendment, renewal or extension of such Letter of Credit, as applicable, no
      Default shall have occurred and be continuing.

     

    Each
      Borrowing and each issuance, amendment, renewal or extension of a Letter of
      Credit shall be deemed to constitute a representation and warranty by the
      Company on the date thereof as to the matters specified in paragraphs (a) and
      (b) of this Section.

     

    SECTION
      4.03.   Designation
      of a Subsidiary Borrower.
      The
      designation of a Subsidiary Borrower pursuant to Section
      2.19
      is
      subject to the condition precedent that the Company or such proposed Subsidiary
      Borrower shall have furnished or caused to be furnished to the Administrative
      Agent:

     

    (a)  Copies,
      certified by the Secretary or Assistant Secretary of such Subsidiary, of its
      Board of Directors’ resolutions (and resolutions of other bodies, if any are
      deemed necessary by counsel for the Administrative Agent) approving the
      Borrowing Subsidiary Agreement and any other Credit Documents to which such
      Subsidiary is becoming a party;

     

    (b)  An
      incumbency certificate, executed by the Secretary or Assistant Secretary of
      such
      Subsidiary, which shall identify by name and title and bear the signature of
      the
      officers of such Subsidiary authorized to request Borrowings hereunder and
      sign
      the Borrowing Subsidiary Agreement and the other Credit Documents to which
      such
      Subsidiary is becoming a party, upon which certificate the Administrative Agent
      and the Lenders shall be entitled to rely until informed of any change in
      writing by the Company or such Subsidiary;

     

    (c)  Opinions
      of counsel to such Subsidiary, in form and substance reasonably satisfactory
      to
      the Administrative Agent and its counsel, with respect to the laws of its
      jurisdiction of organization and such other matters as are reasonably requested
      by counsel to the Administrative Agent and addressed to the Administrative
      Agent
      and the Lenders; and

     

    
      
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    (d)  Any
      promissory notes requested by any Lender, and any other instruments and
      documents reasonably requested by the Administrative Agent, each in such form
      as
      the Administrative Agent may reasonably require.

     

    

     

    ARTICLE
      V  

     

    Affirmative
      Covenants

     

    Until
      the
      Commitments have expired or been terminated and the principal of and interest
      on
      each Loan and all fees payable hereunder shall have been paid in full and all
      Letters of Credit shall have expired or terminated and all LC Disbursements
      shall have been reimbursed, the Company covenants and agrees with the Lenders
      that:

     

    SECTION
      5.01.   Financial
      Statements; Ratings Change and Other Information.
      The
      Company will furnish to the Administrative Agent for distribution to each
      Lender:

     

    (a)  within
      90
      days after the end of each fiscal year of the Company, its audited consolidated
      balance sheet and related statements of operations, stockholders’ equity and
      cash flows as of the end of and for such year, setting forth in each case in
      comparative form the figures for the previous fiscal year, all reported on by
      KPMG LLP or other independent public accountants of recognized national standing
      (without a “going concern” or like qualification or exception and without any
      qualification or exception as to the scope of such audit) to the effect that
      such consolidated financial statements present fairly in all material respects
      the financial condition and results of operations of the Company and its
      consolidated Subsidiaries on a consolidated basis in accordance with GAAP
      consistently applied;

     

    (b)  within
      45
      days after the end of each of the first three fiscal quarters of each fiscal
      year of the Company, its consolidated balance sheet and related statements
      of
      operations, stockholders’ equity and cash flows as of the end of and for such
      fiscal quarter and the then elapsed portion of the fiscal year, setting forth
      in
      each case in comparative form the figures for the corresponding period or
      periods of (or, in the case of the balance sheet, as of the end of) the previous
      fiscal year, all certified by one of its Financial Officers as presenting fairly
      in all material respects the financial condition and results of operations
      of
      the Company and its consolidated Subsidiaries on a consolidated basis in
      accordance with GAAP consistently applied, subject to normal year-end audit
      adjustments and the absence of footnotes;

     

    (c)  concurrently
      with any delivery of financial statements under clause (a) or (b) above, a
      certificate of a Financial Officer of the Company (i) certifying as to whether
      a
      Default has occurred and, if a Default has occurred, specifying the details
      thereof and any action taken or proposed to be taken with respect thereto,
      (ii)
      setting forth reasonably detailed calculations demonstrating compliance with
      Sections
      6.10 and 6.11
      and
      (iii) stating whether any change in GAAP or in the application thereof has
      occurred since the date of the audited financial statements referred to in
      Section
      3.04
      and, if
      any such 

     

    
      
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    change
      has occurred, specifying the effect of such change on the financial statements
      accompanying such certificate;

     

    (d)  concurrently
      with any delivery of financial statements under clause (a) above, a certificate
      of the accounting firm that reported on such financial statements stating
      whether they obtained knowledge during the course of their examination of such
      financial statements of any Default (which certificate may be limited to the
      extent required by accounting rules or guidelines);

     

    (e)  promptly
      after Moody’s or S&P shall have announced the issuance of a corporate credit
      rating for the Company or a change in the Company’s corporate credit rating,
      written notice of such rating issuance or change; and

     

    (f)  promptly
      following any request therefor, such other information regarding the operations,
      business affairs and financial condition of the Company or any Subsidiary,
      or
      compliance with the terms of this Agreement, as the Administrative Agent or
      any
      Lender may reasonably request.

     

    SECTION
      5.02.   Notices
      of Material Events.
      The
      Company will furnish to the Administrative Agent for distribution to each Lender
      written notice of the following promptly after learning thereof:

     

    (a)  the
      occurrence of any Default;

     

    (b)  the
      filing or commencement of any action, suit or proceeding by or before any
      arbitrator or Governmental Authority against or affecting the Company or any
      Affiliate thereof that, if adversely determined, could reasonably be expected
      to
      result in a Material Adverse Effect;

     

    (c)  the
      occurrence of any ERISA Event that, alone or together with any other ERISA
      Events that have occurred, could reasonably be expected to result in liability
      of the Company and its Subsidiaries in an aggregate amount exceeding $5,000,000;
      and

     

    (d)  any
      other
      development that results in, or could reasonably be expected to result in,
      a
      Material Adverse Effect.

     

    Each
      notice delivered under this Section shall be accompanied by a statement of
      a
      Financial Officer or other executive officer of the Company setting forth the
      details of the event or development requiring such notice and any action taken
      or proposed to be taken with respect thereto.

     

    SECTION
      5.03.   Existence;
      Conduct of Business.
      The
      Company will, and will cause each of its Subsidiaries to, do or cause to be
      done
      all things necessary to preserve, renew and keep in full force and effect its
      legal existence and the rights, licenses, permits, privileges and franchises
      material to the conduct of its business; provided
      that the
      foregoing shall not prohibit any merger, consolidation, liquidation or
      dissolution permitted under Section
      6.03.

     

    
      
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    SECTION
      5.04.   Payment
      of Obligations.
      The
      Company will, and will cause each of its Subsidiaries to, pay its obligations,
      including Tax liabilities, that, if not paid, could result in a Material Adverse
      Effect before the same shall become delinquent or in default, except where
      (a)
      the validity or amount thereof is being contested in good faith by appropriate
      proceedings, (b) the Company or such Subsidiary has set aside on its books
      adequate reserves with respect thereto in accordance with GAAP and (c) the
      failure to make payment pending such contest could not reasonably be expected
      to
      result in a Material Adverse Effect.

     

    SECTION
      5.05.   Maintenance
      of Properties; Insurance.
      The
      Company will, and will cause each of its Subsidiaries to, (a) keep and maintain
      all property material to the conduct of its business in good working order
      and
      condition, ordinary wear and tear excepted, and (b) maintain, with financially
      sound and reputable insurance companies, insurance in such amounts and against
      such risks as are customarily maintained by companies engaged in the same or
      similar businesses operating in the same or similar locations.

     

    SECTION
      5.06.   Books
      and Records; Inspection Rights.
      The
      Company will, and will cause each of its Subsidiaries to, keep proper books
      of
      record and account in which full, true and correct entries are made of all
      dealings and transactions in relation to its business and activities. The
      Company will, and will cause each of its Subsidiaries to, permit any
      representatives designated by the Administrative Agent or any Lender, upon
      reasonable prior notice, to visit and inspect its properties, to examine and
      make extracts from its books and records, and to discuss its affairs, finances
      and condition with its officers and independent accountants, all at such
      reasonable times and as often as reasonably requested.

     

    SECTION
      5.07.   Compliance
      with Laws.
      The
      Company will, and will cause each of its Subsidiaries to, comply with all laws,
      rules, regulations and orders of any Governmental Authority applicable to it
      or
      its property, except where the failure to do so, individually or in the
      aggregate, could not reasonably be expected to result in a Material Adverse
      Effect.

     

    SECTION
      5.08.   Use
      of
      Proceeds and Letters of Credit.
      The
      proceeds of the Loans will be used only for general corporate purposes of the
      Company and its Subsidiaries. No part of the proceeds of any Loan will be used,
      whether directly or indirectly, for any purpose that entails a violation of
      any
      of the Regulations of the Board, including Regulations T, U and X. Letters
      of
      Credit will be issued only to support general corporate purposes of the Company
      and its Subsidiaries.

     

    SECTION
      5.09.   Additional
      Guarantors; Release of Guarantors.
      (a)
Effective
      upon any Domestic Subsidiary which is not, as of the date hereof, a Material
      Subsidiary becoming a Material Subsidiary, the Company shall cause such Domestic
      Subsidiary to, within ten (10) Business Days execute and deliver to the
      Administrative Agent for the benefit of the Lenders a joinder to the Subsidiary
      Guaranty. The Company shall promptly notify the Administrative Agent at any
      time
      at which any such Domestic Subsidiary becomes a Material Subsidiary.

     

    (b)  
      If, as
      of the date on which any financial statements are delivered pursuant to
Section
      5.01(b),
      the
      aggregate assets of all Domestic Subsidiaries of the Company that are not
      Subsidiary Guarantors (any such Subsidiary, a “Non-Subject
      Subsidiary”)
      are
      determined to

     

    
      
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    exceed
      ten percent (10%) of the consolidated total assets of the Company and its
      Subsidiaries as of the date of such financial statements, then the Company
      shall
      cause one or more of such Non-Subject Subsidiaries to promptly execute a
      Subsidiary Guaranty so that either (i) the aggregate assets of all Non-Subject
      Subsidiaries do not exceed ten percent (10%) of the consolidated total assets
      of
      the Company and its Subsidiaries or (ii) all Domestic Subsidiaries have executed
      a Subsidiary Guaranty.

     

    (c)  If
      any
      Domestic Subsidiary acting as a Subsidiary Guarantor ceases to be a Material
      Subsidiary and/or is no longer required to act as a Subsidiary Guarantor
      pursuant to paragraph (b) above (as demonstrated in each case to the reasonable
      satisfaction of the Administrative Agent), then such Subsidiary shall be
      released from the Subsidiary Guarantee promptly following the request of the
      Company.

     

     

     
      ARTICLE VI  

     

    Negative
      Covenants

     

    Until
      the
      Commitments have expired or terminated and the principal of and interest on
      each
      Loan and all fees payable hereunder have been paid in full and all Letters
      of
      Credit have expired or terminated and all LC Disbursements shall have been
      reimbursed, the Company covenants and agrees with the Lenders that:

     

    SECTION
      6.01.   Indebtedness.
      The
      Company will not, and will not permit any Subsidiary to, create, incur, assume
      or permit to exist any Indebtedness, except:

     

    (a)  Indebtedness
      created hereunder and under the other Credit Documents;

     

    (b)  Indebtedness
      existing on the date hereof and set forth in Schedule
      6.01
      and
      extensions, renewals and replacements of any such Indebtedness that do not
      increase the outstanding principal amount thereof;

     

    (c)  Indebtedness
      of the Company to any Subsidiary and of any Subsidiary to the Company or any
      other Subsidiary;

     

    (d)  Guarantees
      by the Company of Indebtedness of any Subsidiary and by any Subsidiary of
      Indebtedness of the Company or any other Subsidiary;

     

    (e)  (i)
      Indebtedness of the Company or any Subsidiary incurred to finance the
      acquisition, construction or improvement of any fixed or capital assets,
      including Capital Lease Obligations, so long as such Indebtedness is incurred
      prior to or within 90 days after such acquisition or the completion of such
      construction or improvement and (ii) any Indebtedness assumed in connection
      with
      the acquisition of any such assets or secured by a Lien on any such assets
      prior
      to the acquisition thereof (including, in each case, the acquisition of such
      assets through the purchase of the capital stock or other equity interests
      of a
      Person holding such assets), and extensions, renewals and replacements of any
      such Indebtedness that do not increase the outstanding principal amount thereof;
      

     

    
      
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    provided,
      that
      the aggregate principal amount of all such Indebtedness incurred pursuant to
      clauses (i) and (ii), together
      with any outstanding Indebtedness incurred pursuant to clause (f),
      shall
      not exceed $75,000,000 at any time outstanding;

     

    (f)  Indebtedness
      of any Person that becomes a Subsidiary after the date hereof; provided
      that (i)
      such Indebtedness exists at the time such Person becomes a Subsidiary and is
      not
      created in contemplation of or in connection with such Person becoming a
      Subsidiary and (ii) the aggregate principal amount of Indebtedness permitted
      by
      this clause (f), together with any outstanding Indebtedness incurred pursuant
      to
      clause (e), shall not exceed $75,000,000 at any time outstanding;

     

    (g)  Indebtedness
      of the Company or any Subsidiary as an account party in respect of trade letters
      of credit; 

     

    (h)  Indebtedness
      of SPCs incurred in connection with Permitted Securitizations; provided
      that the
      aggregate outstanding amount of such Receivables Transaction Attributed
      Indebtedness shall at no time exceed $75,000,000; and

     

    (i)  other
      unsecured Indebtedness; provided
      that (i)
      such incurrence would not cause a breach of Section
      6.09 or 6.10,
      as
      determined on a pro forma basis after giving effect thereto, and (ii) the
      aggregate principal amount of Indebtedness of the Company’s Subsidiaries
      permitted by this clause (i) shall not exceed $10,000,000 at any time
      outstanding.

     

    SECTION
      6.02.   Liens.
      The
      Company will not, and will not permit any Subsidiary to, create, incur, assume
      or permit to exist any Lien on any property or asset now owned or hereafter
      acquired by it, or assign or sell any income or revenues (including accounts
      receivable) or rights in respect of any thereof, except:

     

    (a)  Permitted
      Encumbrances;

     

    (b)  any
      Lien
      on any property or asset of the Company or any Subsidiary existing on the date
      hereof and set forth in Schedule
      6.02;
      provided
      that (i)
      such Lien shall not apply to any other property or asset of the Company or
      any
      Subsidiary and (ii) such Lien shall secure only those obligations which it
      secures on the date hereof and extensions, renewals and replacements thereof
      that do not increase the outstanding principal amount thereof;

     

    (c)  any
      Lien
      existing on any property or asset prior to the acquisition thereof by the
      Company or any Subsidiary or existing on any property or asset of any Person
      that becomes a Subsidiary after the date hereof prior to the time such Person
      becomes a Subsidiary; provided
      that (i)
      such Lien is not created in contemplation of or in connection with such
      acquisition or such Person becoming a Subsidiary, as the case may be, (ii)
      such
      Lien shall not apply to any other property or assets of the Company or any
      Subsidiary and (iii) such Lien shall secure only those obligations which it
      secures on the date of such acquisition or the date such Person becomes a
      Subsidiary, as the case may be and extensions, renewals and replacements thereof
      that do not increase the outstanding principal amount thereof;

     

    
      
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    (d)  Liens
      on
      fixed or capital assets acquired, constructed or improved by the Company or
      any
      Subsidiary; provided
      that (i)
      such security interests secure Indebtedness permitted by Section
      6.01(e),
      (ii)
      such security interests and the Indebtedness secured thereby are incurred prior
      to or within 90 days after such acquisition or the completion of such
      construction or improvement, (iii) the Indebtedness secured thereby does not
      exceed 90% of the cost of acquiring, constructing or improving such fixed or
      capital assets and (iv) such security interests shall not apply to any other
      property or assets of the Company or any Subsidiary; 

     

    (e)  Liens
      upon assets of an SPC granted in connection with a Permitted Securitization
      and
      customary backup Liens granted by the transferor in accounts receivable and
      related rights transferred to an SPC in accordance with a Permitted
      Securitization; 

     

    (f)  Liens
      securing Indebtedness owed by any Foreign Subsidiary to the Company or any
      Subsidiary Guarantor; 

     

    (g)  rights
      of
      holders of notes or debentures issued by the Company or any Subsidiary in
      deposits placed in trust to legally or “in substance” defese such notes or
      debentures;

     

    (h)  Liens
      consisting of pledges of cash collateral or government securities to secure,
      on
      a mark-to-market basis, obligations under Swap Agreements, so long as the
      aggregate value of such collateral does not exceed $5,000,000 at any one time
      outstanding; and

     

    (i)  other
      Liens securing Indebtedness at no time exceeding $10,000,000 in aggregate
      principal amount.

     

    SECTION
      6.03.   Fundamental
      Changes.
      (a)
      The
      Company will not, and will not permit any Subsidiary to, merge into or
      consolidate with any other Person, or permit any other Person to merge into
      or
      consolidate with it, or liquidate or dissolve, except that, if at the time
      thereof and immediately after giving effect thereto no Default shall have
      occurred and be continuing, (i) any Subsidiary may merge into the Company in
      a
      transaction in which the Company is the surviving corporation, (ii) any Person
      may merge into any Subsidiary in a transaction in which the surviving entity
      is
      a Subsidiary (and, if either such Subsidiary is a Subsidiary Guarantor, then
      the
      surviving entity shall also be a Subsidiary Guarantor) and (iii) any Subsidiary
      may liquidate or dissolve if the Company determines in good faith that such
      liquidation or dissolution is in the best interests of the Company and is not
      materially disadvantageous to the Lenders; provided
      that any
      such merger involving a Person that is not a wholly owned Subsidiary immediately
      prior to such merger shall not be permitted unless also permitted by
Section
      6.04.

     

    (b)  The
      Company will not, nor will it permit any Subsidiary to, make any Asset
      Disposition except for (i) Asset Dispositions among the Borrowers and one or
      more Domestic Subsidiaries or Subsidiary Guarantors or among any Domestic
      Subsidiaries or Subsidiary Guarantors, (ii) Asset Dispositions by Foreign
      Subsidiaries (other than a Subsidiary Borrower)

     

    
      
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    that
      are
      not Subsidiary Guarantors to the Company or any Subsidiary, (iii) Asset
      Dispositions expressly permitted by Sections
      6.02, 6.04, 6.06 or 6.07,
      (iv)
      transfers of accounts receivable (and rights ancillary thereto) pursuant to,
      and
      in accordance with the terms of, a Permitted Securitization; provided
      that the
      Receivables Transaction Attributed Indebtedness pursuant to Permitted
      Securitizations may at no time exceed $75,000,000 and (v) other Asset
      Dispositions of property that, together with all other property of the Company
      and its Subsidiaries previously leased, sold or disposed of in Asset
      Dispositions made pursuant to this Section
      6.03(b)(v)
      during
      the twelve-month period ending with the month in which any such lease, sale
      or
      other disposition occurs, do not constitute a Substantial Portion of the
      property of the Company and its Subsidiaries.

     

    (c)  The
      Company will not, and will not permit any of its Subsidiaries to, engage to
      any
      material extent in any business other than businesses of the type conducted
      by
      the Company and its Subsidiaries on the date of execution of this Agreement
      and
      businesses reasonably related thereto.

     

    SECTION
      6.04.   Investments,
      Loans, Advances, Guarantees and Acquisitions.
      The
      Company will not, and will not permit any of its Subsidiaries to, purchase,
      hold
      or acquire (including pursuant to any merger with any Person that was not a
      Wholly-Owned Subsidiary prior to such merger) any capital stock, evidences
      of
      indebtedness or other securities (including any option, warrant or other right
      to acquire any of the foregoing) of, make or permit to exist any loans or
      advances to, Guarantee any obligations of, or make or permit to exist any
      investment or any other interest in, any other Person, or purchase or otherwise
      acquire (in one transaction or a series of transactions) any assets of any
      other
      Person constituting a business unit, except:

     

    (a)  Permitted
      Investments;

     

    (b)  investments
      by the Company in the capital stock of its Subsidiaries;

     

    (c)  loans
      or
      advances made by the Company to any Subsidiary and made by any Subsidiary to
      the
      Company or any other Subsidiary; 

     

    (d)  Guarantees
      constituting Indebtedness permitted by Section
      6.01;
      

     

    (e)  the
      Subsidiary Guarantee; 

     

    (f)  subject
      to the provisions of this Section
      6.04(f)
      and the
      requirements contained in the definition of Permitted Acquisition, the Company
      and its Wholly-Owned Subsidiaries may from time to time effect Permitted
      Acquisitions, so long as: (i) no Default shall have occurred and be continuing
      at the time of the consummation of the proposed Permitted Acquisition or
      immediately after giving effect thereto (determined on a pro forma basis in
      respect of Sections
      6.09 and 6.10);
      (ii)
      if the proposed Permitted Acquisition is for aggregate consideration of
      $25,000,000 or more, the Company shall have given to the Administrative Agent
      for distribution to each Lender written notice of such proposed Permitted
      Acquisition on the earlier of (x) the date on which the Permitted Acquisition
      is
      publicly announced and (y) ten (10) Business Days prior to consummation of
      such
      Permitted Acquisition (or such shorter period of time as may be reasonably
      acceptable to the Administrative Agent), which notice shall be executed by
      its
      chief financial officer or vice president-finance and shall describe in
      reasonable

     

    
      
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    detail
      the principal terms and conditions of such Permitted Acquisition; and (iii)
      at
      the time of any such Permitted Acquisition involving the creation or acquisition
      of a Subsidiary, or the acquisition of capital stock or other Equity Interest
      of
      any Person, the Company and its Subsidiaries shall have complied with
Section
      5.09;
      

     

    (g)  investments
      (including debt obligations) received in connection with the bankruptcy or
      reorganization of suppliers and customers and in good faith settlement of
      delinquent obligations of, and other disputes with, customers and suppliers
      arising in the ordinary course of business;

     

    (h)  loans
      and
      advancements to officers and employees of the Company and its Subsidiaries
      for
      moving, relocation and travel expenses and other similar expenditures, in each
      case in the ordinary course of business, in an aggregate amount not to exceed
      $2,500,000 at any time (determined without regard to any write-downs or
      write-offs of such loans and advances);

     

    (i)  loans
      by
      the Company to officers, directors and employees of the Company and its
      Subsidiaries in connection with their purchase of capital stock of the Company,
      so long as no cash is paid by the Company to any thereof in connection with
      such
      purchase;

     

    (j)  investments
      evidenced by Swap Agreements entered into pursuant to Section
      6.05;
      

     

    (k)  investments
      by an SPC in connection with a Permitted Securitization;

     

    (l)  investments
      in joint ventures so long as (i) such joint venture is engaged in a business
      satisfying the requirements of Section
      6.03(c)
      and (ii)
      the amount of all investments contributed to such joint venture and all other
      joint ventures by the Company and its Subsidiaries does not exceed $75,000,000
      in the aggregate;

     

    (m)  
      investments consisting of credit sale contracts generated by retail customers
      of
      the Borrower or any of its Subsidiaries in the ordinary course of business;
      and

     

    (n)  
      so long
      as no Default exists or would occur after giving effect thereto, other
      investments not otherwise permitted by clauses (a) through (l) above in an
      amount not to exceed $25,000,000 in the aggregate.

     

    SECTION
      6.05.   Swap
      Agreements.
      The
      Company will not, and will not permit any of its Subsidiaries to, enter into
      any
      Swap Agreement, except (a) Swap Agreements entered into to hedge or mitigate
      risks to which the Company or any Subsidiary has actual exposure (other than
      those in respect of Equity Interests of the Company or any of its Subsidiaries),
      and (b) Swap Agreements entered into in order to effectively cap, collar or
      exchange interest rates (from fixed to floating rates, from one floating rate
      to
      another floating rate or otherwise) with respect to any interest-bearing
      liability or investment of the Company or any Subsidiary.

     

    SECTION
      6.06.   Restricted
      Payments.
      The
      Company will not, and will not permit any of its Subsidiaries to, declare,
      pay
      or make, or agree to declare, pay or make, directly or indirectly, any
      Restricted Payment, except (a) the Company may declare and pay dividends with
      respect to its Equity Interests payable solely in additional shares of its
      common stock, (b) 

     

    
      
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    Subsidiaries
      may declare and pay dividends ratably with respect to their Equity Interests,
      (c) the Company may make Restricted Payments pursuant to and in accordance
      with
      stock plans or other benefit plans for management or employees of the Company
      and its Subsidiaries and (d) the Company may make other Restricted Payments
      so
      long as (i) the aggregate of all such other Restricted Payments made after
      the
      date hereof does not exceed the sum of $150,000,000 plus 50% of the aggregate
      of
      all positive Net Income of the Company for each fiscal quarter completed after
      the date hereof and (ii) no Default has occurred and is continuing or would
      occur after giving effect thereto. 

     

    SECTION
      6.07.   Transactions
      with Affiliates.
      The
      Company will not, and will not permit any of its Subsidiaries to, sell, lease
      or
      otherwise transfer any property or assets to, or purchase, lease or otherwise
      acquire any property or assets from, or otherwise engage in any other
      transactions with, any of its Affiliates, except (a) in the ordinary course
      of
      business at prices and on terms and conditions not less favorable to the Company
      or such Subsidiary than could be obtained on an arm’s-length basis from
      unrelated third parties, (b) transactions between or among the Company and
      its
      Wholly-Owned Subsidiaries not involving any other Affiliate, (c) transactions
      permitted under Sections
      6.01(c),
      6.02(f)
      and
6.04(g)
      and
(h)
      and (d)
      the making of any Restricted Payment permitted by Section
      6.06.

     

    SECTION
      6.08.   Restrictive
      Agreements.
      The
      Company will not, and will not permit any of its Subsidiaries to, directly
      or
      indirectly, enter into, incur or permit to exist any agreement or other
      arrangement that prohibits, restricts or imposes any condition upon (a) the
      ability of the Company or any Subsidiary to create, incur or permit to exist
      any
      Lien upon any of its property or assets, or (b) the ability of any Subsidiary
      to
      pay dividends or other distributions with respect to any shares of its capital
      stock or to make or repay loans or advances to the Company or any other
      Subsidiary or to Guarantee Indebtedness of the Company or any other Subsidiary;
      provided
      that (i)
      the foregoing shall not apply to restrictions and conditions imposed by law
      or
      by this Agreement, (ii) the foregoing shall not apply to restrictions and
      conditions existing on the date hereof identified on Schedule
      6.08
      (but
      shall apply to any extension or renewal of, or any amendment or modification
      expanding the scope of, any such restriction or condition), (iii) the foregoing
      shall not apply to customary restrictions and conditions contained in agreements
      relating to the sale of a Subsidiary pending such sale, provided that such
      restrictions and conditions apply only to the Subsidiary that is to be sold
      and
      such sale is permitted hereunder, (iv) clause (a) of the foregoing shall not
      apply to restrictions or conditions imposed by any agreement relating to secured
      Indebtedness permitted by this Agreement if such restrictions or conditions
      apply only to the property or assets securing such Indebtedness, (v) the
      foregoing shall not apply to restrictions or conditions upon any SPC imposed
      in
      connection with a Permitted Securitization, and (vi) clause (a) of the foregoing
      shall not apply to (A) customary provisions in leases and other contracts
      restricting the assignment thereof or limiting Liens securing indebtedness
      incurred for purposes of financing the acquired assets to which such Liens
      attach or (B) negative pledge provisions contained in documentation evidencing
      the issuance by the Company of debt securities with an aggregate principal
      amount not to exceed $50,000,000 at any one time outstanding, so long as such
      documentation provides for the granting of Liens if such debt securities are
      equally and ratably secured.

     

    
      
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    SECTION
      6.09.   Minimum
      Interest Coverage Ratio.
      The
      Company will not permit the Interest Coverage Ratio as of the end of any fiscal
      quarter of the Company to be less than or equal to 2.75 to 1.00.

     

    SECTION
      6.10.   Maximum
      Leverage Ratio.
      The
      Company will cause the Leverage Ratio to be less than 3.00 to 1.00 at all
      times.

     

    SECTION
      6.11.   Fiscal
      Year.
      The
      Company shall not, nor shall it permit any Subsidiary to, change its fiscal
      year
      to end on any date other than the Saturday closest to December 31 of each
      year.

     

     
      ARTICLE VII  

     

    Events
      of Default

     

    If
      any of
      the following events (“Events
      of Default”)
      shall
      occur:

     

    (a)  any
      of
      the Borrowers shall fail to pay any principal of any Loan or any reimbursement
      obligation in respect of any LC Disbursement or any cash collateral amount
      due
      pursuant to Section
      2.05(j)
      when and
      as the same shall become due and payable, whether at the due date thereof or
      at
      a date fixed for prepayment thereof or otherwise;

     

    (b)  any
      of
      the Borrowers shall fail to pay any interest on any Loan or any fee or any
      other
      amount (other than an amount referred to in clause (a) of this Article) payable
      under this Agreement, when and as the same shall become due and payable, and
      such failure shall continue unremedied for a period of five days;

     

    (c)  any
      representation or warranty made or deemed made by or on behalf of the Company
      or
      any Subsidiary in or in connection with this Agreement or any amendment or
      modification hereof or waiver hereunder, or in any report, certificate,
      financial statement or other document furnished pursuant to or in connection
      with this Agreement or any amendment or modification hereof or waiver hereunder,
      shall prove to have been incorrect in any material respect when made or deemed
      made;

     

    (d)  the
      Company shall fail to observe or perform any covenant, condition or agreement
      contained in Section
      5.02,
      5.03
      (with
      respect to the Company’s existence) or 5.08 or in Article VI;

     

    (e)  the
      Company shall fail to observe or perform any covenant, condition or agreement
      contained in this Agreement (other than those specified in clause (a), (b)
      or
      (d) of this Article), and such failure shall continue unremedied for a period
      of
      30 days after notice thereof from the Administrative Agent to the Company (which
      notice will be given at the request of any Lender); 

     

    (f)  the
      Company or any Subsidiary shall fail to make any payment (whether of principal
      or interest or otherwise and regardless of amount) in respect of any
      Material

     

    
      
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    Indebtedness,
      when and as the same shall become due and payable (after accounting for any
      period of grace available before an event of default would occur
      thereunder);

     

    (g)  any
      event
      or condition occurs that results in any Material Indebtedness becoming due
      prior
      to its scheduled maturity or that enables or permits (with or without the giving
      of notice, the lapse of time or both) the holder or holders of any Material
      Indebtedness or any trustee or agent on its or their behalf to cause any
      Material Indebtedness to become due, or to require the prepayment, repurchase,
      redemption or defeasance thereof, prior to its scheduled maturity; provided
      that
      this clause (g) shall not apply to secured Indebtedness that becomes due as
      a
      result of the voluntary sale or transfer of the property or assets securing
      such
      Indebtedness;

     

    (h)  an
      involuntary proceeding shall be commenced or an involuntary petition shall
      be
      filed seeking (i) liquidation, reorganization or other relief in respect of
      the
      Company or any Subsidiary or its debts, or of a substantial part of its assets,
      under any Federal, state or foreign bankruptcy, insolvency, receivership or
      similar law now or hereafter in effect or (ii) the appointment of a receiver,
      trustee, custodian, sequestrator, conservator or similar official for the
      Company or any Subsidiary or for a substantial part of its assets, and, in
      any
      such case, such proceeding or petition shall continue undismissed for 60 days
      or
      an order or decree approving or ordering any of the foregoing shall be
      entered;

     

    (i)  the
      Company or any Subsidiary shall (i) voluntarily commence any proceeding or
      file
      any petition seeking liquidation, reorganization or other relief under any
      Federal, state or foreign bankruptcy, insolvency, receivership or similar law
      now or hereafter in effect, (ii) consent to the institution of, or fail to
      contest in a timely and appropriate manner, any proceeding or petition described
      in clause (h) of this Article, (iii) apply for or consent to the appointment
      of
      a receiver, trustee, custodian, sequestrator, conservator or similar official
      for the Company or any Subsidiary or for a substantial part of its assets,
      (iv)
      file an answer admitting the material allegations of a petition filed against
      it
      in any such proceeding, (v) make a general assignment for the benefit of
      creditors or (vi) take any action for the purpose of effecting any of the
      foregoing;

     

    (j)  the
      Company or any Subsidiary shall become unable, admit in writing its inability
      or
      fail generally to pay its debts as they become due;

     

    (k)  one
      or
      more judgments for the payment of money in an aggregate amount in excess of
      $5,000,000 shall be rendered against the Company, any Subsidiary or any
      combination thereof and the same shall remain undischarged for a period of
      30
      consecutive days during which execution shall not be effectively stayed, or
      any
      action shall be legally taken by a judgment creditor to attach or levy upon
      any
      assets of the Company or any Subsidiary to enforce any such
      judgment;

     

    (l)  an
      ERISA
      Event shall have occurred that, in the opinion of the Required Lenders, when
      taken together with all other ERISA Events that have occurred, could reasonably
      be expected to result in liability of the Company and its Subsidiaries in an
      

     

    
      
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    aggregate
      amount exceeding (i) $5,000,000 in any year or (ii) $15,000,000 for all
      periods;

     

    (m)  a
      Change
      in Control shall occur; or

     

    (n)  except
      as
      otherwise provided in Section
      6.03(a),
      the
      Subsidiary Guaranty or any provisions thereof shall cease to be in full force
      or
      effect as to any Subsidiary Guarantor, or any Subsidiary Guarantor or any Person
      acting for or on behalf of any Subsidiary Guarantor shall deny or disaffirm
      such
      Subsidiary Guarantor’s obligations under the Subsidiary Guaranty;

     

    then,
      and
      in every such event (other than an event with respect to any of the Borrowers
      described in clause (h) or (i) of this Article), and at any time thereafter
      during the continuance of such event, the Administrative Agent may, and at
      the
      request of the Required Lenders shall, by notice to the Company, take either
      or
      both of the following actions, at the same or different times: (i) terminate
      the
      Commitments, and thereupon the Commitments shall terminate immediately, and
      (ii)
      declare the Loans then outstanding to be due and payable in whole (or in part,
      in which case any principal not so declared to be due and payable may thereafter
      be declared to be due and payable), and thereupon the principal of the Loans
      so
      declared to be due and payable, together with accrued interest thereon and
      all
      fees and other obligations of the Borrowers accrued hereunder, shall become
      due
      and payable immediately, without presentment, demand, protest or other notice
      of
      any kind, all of which are hereby waived by the Borrowers; and in case of any
      event with respect to any of the Borrowers described in clause (h) or (i) of
      this Article, the Commitments shall automatically terminate and the principal
      of
      the Loans then outstanding, together with accrued interest thereon and all
      fees
      and other obligations of the Borrowers accrued hereunder, shall automatically
      become due and payable, without presentment, demand, protest or other notice
      of
      any kind, all of which are hereby waived by the Borrowers.

     

    ARTICLE
      VIII  

     

    The
      Administrative Agent

     

    Each
      of
      the Lenders and the Issuing Bank 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.

     

    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 Company or any Subsidiary or other Affiliate thereof as if
      it
      were not the Administrative Agent hereunder.

     

    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

              
      

    
      
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    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
      9.02),
      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 Company 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
      9.02)
      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
      Company 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 IV or elsewhere herein, other than to confirm
      receipt of items expressly required to be delivered to the Administrative
      Agent.

     

    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 Company), independent accountants and other experts
      selected by it, and shall not be liable for any action taken or not taken by
      it
      in accordance with the advice of any such counsel, accountants or
      experts.

     

    The
      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.

     

    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, the Issuing Bank and the Company. Upon any such
      resignation, the Required Lenders shall have the right, subject, at any time
      at
      which no Default is outstanding, to the prior written consent of the Company
      (which shall not be unreasonably withheld or delayed), to appoint a

     

    
      
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    successor.
      If no successor shall have been so appointed by the Required Lenders and shall
      have accepted such appointment within 30 days after the retiring Administrative
      Agent gives notice of its resignation, then the retiring Administrative Agent
      may, on behalf of the Lenders and the Issuing Bank, 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
      Company to a successor Administrative Agent shall be the same as those payable
      to its predecessor unless otherwise agreed between the Company and such
      successor. After the Administrative Agent’s resignation hereunder, the
      provisions of this Article and Section
      9.03
      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.

     

    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.

     

    The
      Administrative Agent shall be permitted from time to time to designate one
      of
      its Affiliates to perform the duties to be performed by the Administrative
      Agent
      hereunder with respect to Loans and Borrowings denominated in Foreign
      Currencies. The provisions of this Article VIII shall apply to any such
      Affiliate mutatis mutandis.

     

    The
      title
      "Syndication Agent" is purely honorific, and the Person designated as the
      "Syndication Agent" shall not have any duties or responsibilities in such
      capacity.

     

       
      ARTICLE IX  

     

    Miscellaneous

     

    SECTION
      9.01.   Notices.
      (a)
      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:

     

    (i)  if
      to the
      Company or any Subsidiary Borrower, to it at 6105
      Trenton Lane North, Minneapolis, Minnesota 55442, Attention of Don
      Heidemann (Telecopy No. (763) 551-7889);

     

    
      
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    (ii)  if
      to the
      Administrative Agent, (A) in the case of Dollar-denominated Borrowings, to
      JPMorgan Loan Services, Agency Closing Unit, 211 South Clark Street, 19th Floor,
      Chicago, Illinois 60603, Attention of Sharon K. Bosch (Telecopy No. (312)
      385-7107) and (B) in the case of Borrowings denominated in another currency,
      to
      J.P. Morgan Europe Limited, 125 London Wall, London EC2Y 5AJ, United Kingdom,
      Attention Loan and Agency Services: Belinda Lucas (Telecopy No. (00 44 (0)
      207)
      777-2360);

     

    (iii)  if
      to the
      Issuing Bank, to it at JPMorgan Chase Bank, National Association, Global Trade
      Services, 300 South Riverside Plaza, Chicago, Illinois 60606, Attention of
      Victorio De Guzman (Telecopy No. (312) 954-2457);

     

    (iv)  if
      to the
      Swingline Lender, JPMorgan Loan Services, Agency Closing Unit, 211 South Clark
      Street, 19th Floor, Chicago, Illinois 60603, Attention of Sharon K. Bosch
      (Telecopy No. (312) 385-7107); and

     

    (v)  if
      to any
      other Lender, to it at its address (or telecopy number) set forth in its
      Administrative Questionnaire.

     

    (b)  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 Company 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.

     

    (c)  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.

     

    SECTION
      9.02.   Waivers;
      Amendments.
      (a)
      No
      failure or delay by the Administrative Agent, the Issuing Bank or any Lender
      in
      exercising any right or power hereunder shall operate as a waiver thereof,
      nor
      shall any single or partial exercise of any such right or power, or any
      abandonment or discontinuance of steps to enforce such a right or power,
      preclude any other or further exercise thereof or the exercise of any other
      right or power. The rights and remedies of the Administrative Agent, the Issuing
      Bank and the Lenders hereunder are cumulative and are not exclusive of any
      rights or remedies that they would otherwise have. No waiver of any provision
      of
      this Agreement or consent to any departure by the Borrowers therefrom shall
      in
      any event be effective unless the same shall be permitted by paragraph (b)
      of
      this Section, and then such waiver or consent shall be effective only in the
      specific instance and for the purpose for which given. Without limiting the
      generality of the foregoing, the making of a Loan or issuance of a Letter of
      Credit shall not be construed as a waiver of any Default, regardless of whether
      the Administrative Agent, any Lender or the Issuing Bank may have had notice
      or
      knowledge of such Default at the time.

     

    
      
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    (b)  Neither
      this Agreement nor any provision hereof may be waived, amended or modified
      except pursuant to an agreement or agreements in writing entered into by the
      Borrowers and the Required Lenders or by the Company and the Administrative
      Agent with the consent of the Required Lenders; provided
      that no
      such agreement shall (i) increase the Commitment of any Lender without the
      written consent of such Lender, (ii) reduce the principal amount of any Loan
      or
      LC Disbursement or reduce the rate of interest thereon, or reduce any fees
      payable hereunder, without the written consent of each Lender affected thereby,
      (iii) postpone the scheduled date of payment of the principal amount of any
      Loan
      or LC Disbursement, or any interest thereon, or any fees payable hereunder,
      or
      reduce the amount of, waive or excuse any such payment, or postpone the
      scheduled date of expiration of any Commitment, without the written consent
      of
      each Lender affected thereby, (iv) change Section
      2.17(b)
      or
(c)
      in a
      manner that would alter the pro rata sharing of payments required thereby,
      without the written consent of each Lender, (v) change any of the provisions
      of
      this Section or the definition of “Required Lenders” or any other provision
      hereof specifying the number or percentage of Lenders required to waive, amend
      or modify any rights hereunder or make any determination or grant any consent
      hereunder, without the written consent of each Lender, (vi) except as required
      under Section
      5.09(c)
      or in
      connection with a transaction permitted by Section
      6.03,
      release
      any Subsidiary Guarantor from its obligations under the Subsidiary Guaranty,
      without the written consent of each Lender or (vii) change Article
      X
      in a
      manner that would materially alter the obligations of the Company thereunder,
      without the written consent of each Lender; provided further that no such
      agreement shall amend, modify or otherwise affect the rights or duties of the
      Administrative Agent, the Issuing Bank or the Swingline Lender hereunder without
      the prior written consent of the Administrative Agent, the Issuing Bank or
      the
      Swingline Lender, as the case may be.

     

    (c)  Notwithstanding
      the foregoing, upon the execution and delivery of all documentation required
      by
Section
      2.08(d)
      to be
      delivered in connection with an increase to the aggregate Revolving Commitment,
      the Administrative Agent, the Borrowers and the new or existing Lenders whose
      Revolving Commitments have been affected may and shall enter into an amendment
      hereof (which shall be binding on all parties hereto and the new Lenders) solely
      for the purpose of reflecting any new Lenders and their new Revolving
      Commitments and any increase in the Revolving Commitment of any existing
      Lender.

     

    (d)  If,
      in
      connection with any proposed waiver, amendment or modification of any of the
      provisions of this Agreement as contemplated by clauses (i) through (vi) of
      Section
      9.02(b),
      the
      consent of the Required Lenders is obtained but the consent of one or more
      of
      such other Lenders whose consent is required is not obtained, then the Company
      may, at its sole expense and effort, upon notice to such Lender and the
      Administrative Agent, require such Lender to assign and delegate, without
      recourse (in accordance with and subject to the restrictions contained in
Section
      9.04),
      all
      its interests, rights and obligations under this Agreement to an assignee that
      shall assume such obligations (which assignee may be another Lender, if a Lender
      accepts such assignment) and shall grant its consent to the proposed waiver,
      amendment or modification; provided,
      that
      (i) the Company shall have received the prior written consent of the
      Administrative Agent (and if a Commitment is being assigned, each Issuing Bank),
      which consent shall not unreasonably be withheld, and (ii) such Lender shall
      have received payment of an amount equal to the outstanding principal of its
      Loans and participations in LC Disbursements and Swingline Loans, accrued
      interest thereon, accrued fees and all other

     

    
      
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    amounts
      payable to it hereunder, from the assignee (to the extent of such outstanding
      principal and accrued interest and fees) or the Company (in the case of all
      other amounts).

     

    SECTION
      9.03.   Expenses;
      Indemnity; Damage Waiver.
      (a)
      The
      Borrowers shall jointly and severally pay (i) all reasonable out of pocket
      expenses incurred by the Administrative Agent and its Affiliates, including
      the
      reasonable fees, charges and disbursements of counsel for the Administrative
      Agent, in connection with the syndication of the credit facilities provided
      for
      herein, the preparation and administration of this Agreement or any amendments,
      modifications or waivers of the provisions hereof (whether or not the
      transactions contemplated hereby or thereby shall be consummated), (ii) all
      reasonable out-of-pocket expenses incurred by the Issuing Bank in connection
      with the issuance, amendment, renewal or extension of any Letter of Credit
      or
      any demand for payment thereunder and (iii) all out-of-pocket expenses incurred
      by the Administrative Agent, the Issuing Bank or any Lender, including the
      fees,
      charges and disbursements of any counsel for the Administrative Agent, the
      Issuing Bank or any Lender, in connection with the enforcement or protection
      of
      its rights in connection with this Agreement, including its rights under this
      Section, or in connection with the Loans made or Letters of Credit issued
      hereunder, including all such out-of pocket expenses incurred during any
      workout, restructuring or negotiations in respect of such Loans or Letters
      of
      Credit.

     

    (b)  The
      Borrowers shall jointly and severally indemnify the Administrative Agent, the
      Issuing Bank and each Lender, and each Related Party of any of the foregoing
      Persons (each such Person being called an “Indemnitee”)
      against, and hold each Indemnitee harmless from, any and all losses, claims,
      damages, liabilities and related expenses, including the fees, charges and
      disbursements of any counsel for any Indemnitee, incurred by or asserted against
      any Indemnitee arising out of, in connection with, or as a result of (i) the
      execution or delivery of this Agreement or any agreement or instrument
      contemplated hereby, the performance by the parties hereto of their respective
      obligations hereunder or the consummation of the Transactions or any other
      transactions contemplated hereby, (ii) any Loan or Letter of Credit or the
      use
      of the proceeds therefrom (including any refusal by the Issuing Bank to honor
      a
      demand for payment under a Letter of Credit if the documents presented in
      connection with such demand do not strictly comply with the terms of such Letter
      of Credit), (iii) any actual or alleged presence or release of Hazardous
      Materials on or from any property owned or operated by the Company or any of
      its
      Subsidiaries, or any Environmental Liability related in any way to the Company
      or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation,
      investigation or proceeding relating to any of the foregoing, whether based
      on
      contract, tort or any other theory and regardless of whether any Indemnitee
      is a
      party thereto; provided
      that
      such indemnity shall not, as to any Indemnitee, be available to the extent
      that
      such losses, claims, damages, liabilities or related expenses are determined
      by
      a court of competent jurisdiction by final and nonappealable judgment to have
      resulted from the gross negligence or willful misconduct of such
      Indemnitee.

     

    (c)  To
      the
      extent that any Borrower fails to pay any amount required to be paid by it
      to
      the Administrative Agent, the Issuing Bank or the Swingline Lender under
      paragraph (a) or (b) of this Section, each Lender severally agrees to pay to
      the
      Administrative Agent, the Issuing Bank or the Swingline Lender, as the case
      may
      be, such Lender’s Applicable Percentage (determined as of the time that the
      applicable unreimbursed expense or indemnity payment is sought) of such unpaid
      amount; provided
      that the
      unreimbursed expense or indemnified loss,

     

    
      
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    claim,
      damage, liability or related expense, as the case may be, was incurred by or
      asserted against the Administrative Agent, the Issuing Bank or the Swingline
      Lender in its capacity as such.

     

    (d)  To
      the
      extent permitted by applicable law, the Borrowers shall not assert, and hereby
      waive, any claim against any Indemnitee, on any theory of liability, for
      special, indirect, consequential or punitive damages (as opposed to direct
      or
      actual damages) arising out of, in connection with, or as a result of, this
      Agreement or any agreement or instrument contemplated hereby, the Transactions,
      any Loan or Letter of Credit or the use of the proceeds thereof.

     

    (e)  All
      amounts due under this Section shall be payable promptly after written demand
      therefor.

     

    SECTION
      9.04.   Successors
      and Assigns.
      (a)
      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
      (including any Affiliate of the Issuing Bank that issues any Letter of Credit),
      except that (i) the Borrowers may not assign or otherwise transfer any of their
      respective rights or obligations hereunder without the prior written consent
      of
      each Lender (and any attempted assignment or transfer by the Borrowers 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
      Section. 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 (including any Affiliate of the Issuing
      Bank that issues any Letter of Credit), Participants (to the extent provided
      in
      paragraph (c) of this Section) and, to the extent expressly contemplated hereby,
      the Related Parties of each of the Administrative Agent, the Issuing Bank and
      the Lenders) any legal or equitable right, remedy or claim under or by reason
      of
      this Agreement.

     

    (b)  (i)
      Subject to the conditions set forth in paragraph (b)(ii) below, any Lender
      may
      assign to one or more assignees 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:

     

    (A)  the
      Company, provided
      that no
      consent of the Company shall be required for an assignment to a Lender, an
      Affiliate of a Lender, an Approved Fund or, if an Event of Default has occurred
      and is continuing, any other assignee;

     

    (B)  the
      Administrative Agent, provided
      that no
      consent of the Administrative Agent shall be required for an assignment of
      any
      Commitment to an assignee that is a Lender with a Commitment immediately prior
      to giving effect to such assignment; and

     

    (C)  the
      Issuing Bank.

     

    (ii)  Assignments
      shall be subject to the following additional conditions:

     

    (A)  except
      in
      the case of an assignment to a Lender or an Affiliate of a Lender or an
      assignment of the entire remaining amount of the assigning Lender’s

     

    
      
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    Commitment
      or Loans of any Class, 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
      Company and the Administrative Agent otherwise consent, provided
      that no
      such consent of the Company shall be required if an Event of Default has
      occurred and is continuing;

     

    (B)  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 one Class of Commitments
      or Loans;

     

    (C)  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 payable by either the assignee or the assignor; and

     

    (D)  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 Company and its affiliates, the Credit
      Parties 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.

     

    For
      the
      purposes of this Section
      9.04(b),
      the
      term “Approved
      Fund”
has
      the
      following meaning:

     

    “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 (a)
      a
      Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an
      entity that administers or manages a Lender.

     

    (iii)  Subject
      to acceptance and recording thereof pursuant to paragraph (b)(iv) 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
      2.15,
      2.16, 2.17 and 9.03). Any assignment or transfer by a Lender of rights or
      obligations under this Agreement that does not comply with this Section
      9.04
      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 paragraph (c)
      of
      this Section.

     

    
      
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    (iv)  The
      Administrative Agent, acting for this purpose as an agent of the Borrowers,
      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 and LC
      Disbursements 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 Borrowers, the
      Administrative Agent, the Issuing Bank 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 Company, the
      Issuing Bank and any Lender, at any reasonable time and from time to time upon
      reasonable prior notice.

     

    (v)  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 paragraph (b) of this Section and any written
      consent to such assignment required by paragraph (b) of this Section, 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 Section
      2.04(c),
      2.05(d)
      or
(e),
      2.06(b),
      2.17(d)
      or
9.03(c),
      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.

     

    (c) (i)
      Any
      Lender may, without the consent of the Borrowers, the Administrative Agent,
      the
      Issuing Bank or the Swingline Lender, 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 (A)
      such Lender’s obligations under this Agreement shall remain unchanged, (B) such
      Lender shall remain solely responsible to the other parties hereto for the
      performance of such obligations and (C) the Borrowers, the Administrative Agent,
      the Issuing Bank 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 first proviso to Section
      9.02(b)
      that
      affects such Participant. Subject to paragraph (c)(ii) of this Section, the
      Borrowers agree that each Participant shall be entitled to the benefits of
      Sections
      2.14,
      2.15
      and
2.16
      to the
      same extent as if it were a Lender and had acquired its interest by assignment
      pursuant to paragraph (b) of this Section. To the extent permitted by law,
      each
      Participant also shall

     

    
      
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    be
      entitled to the benefits of Section
      9.08
      as
      though it were a Lender, provided such Participant agrees to be subject to
      Section
      2.17(c)
      as
      though it were a Lender.

     

    (ii)  A
      Participant shall not be entitled to receive any greater payment under
Section
      2.14
      or
2.16
      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 Company’s prior written consent. A Participant
      that would be a Foreign Lender if it were a Lender shall not be entitled to
      the
      benefits of Section
      2.16
      unless
      the Company is notified of the participation sold to such Participant and such
      Participant agrees, for the benefit of the Company, to comply with Section
      2.16(e)
      as
      though it were a Lender.

     

    (d)  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.

     

    SECTION
      9.05.   Survival.
      All
      covenants, agreements, representations and warranties made by the Borrowers
      herein and in the certificates or other instruments delivered in connection
      with
      or pursuant to this Agreement shall be considered to have been relied upon
      by
      the other parties hereto and shall survive the execution and delivery of this
      Agreement and the making of any Loans and issuance of any Letters of Credit,
      regardless of any investigation made by any such other party or on its behalf
      and notwithstanding that the Administrative Agent, the Issuing Bank or any
      Lender may have had notice or knowledge of any Default or incorrect
      representation or warranty at the time any credit is extended hereunder, and
      shall continue in full force and effect as long as the principal of or any
      accrued interest on any Loan or any fee or any other amount payable under this
      Agreement is outstanding and unpaid or any Letter of Credit is outstanding
      and
      so long as the Commitments have not expired or terminated. The provisions of
      Sections
      2.14,
      2.15,
      2.16
      and
9.03
      and
Article
      VIII
      shall
      survive and remain in full force and effect regardless of the consummation
      of
      the transactions contemplated hereby, the repayment of the Loans, the expiration
      or termination of the Letters of Credit and the Commitments or the termination
      of this Agreement or any provision hereof.

     

    SECTION
      9.06.   Counterparts;
      Integration; Effectiveness.
      This
      Agreement may be executed in counterparts (and by different parties hereto
      on
      different counterparts), each of which shall constitute an original, but all
      of
      which when taken together shall constitute a single contract. This Agreement
      and
      any separate letter agreements with respect to fees payable to the
      Administrative Agent constitute the entire contract among the parties relating
      to the subject matter hereof and supersede any and all previous agreements
      and
      understandings, oral or written, relating to the subject matter hereof. Except
      as provided in Section
      4.01,
      this
      Agreement shall become effective when it shall have been executed by the
      Administrative Agent and when the Administrative Agent shall have received
      counterparts hereof which, when taken together, bear the signatures of each
      of
      the other parties hereto, and thereafter shall be binding upon and inure to
      the
      benefit of the parties hereto and their respective successors and assigns.
      Delivery of an 

     

    
      
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    executed
      counterpart of a signature page of this Agreement by telecopy shall be effective
      as delivery of a manually executed counterpart of this Agreement.

     

    SECTION
      9.07.   Severability.
      Any
      provision of this Agreement held to be invalid, illegal or unenforceable in
      any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such invalidity, illegality or unenforceability without affecting the validity,
      legality and enforceability of the remaining provisions hereof; and the
      invalidity of a particular provision in a particular jurisdiction shall not
      invalidate such provision in any other jurisdiction.

     

    SECTION
      9.08.   Right
      of Setoff.
      If an
      Event of Default shall have occurred and be continuing, each Lender and each
      of
      its Affiliates is hereby authorized at any time and from time to time, to the
      fullest extent permitted by law, to set off and apply any and all deposits
      (general or special, time or demand, provisional or final) at any time held
      and
      other obligations at any time owing by such Lender or Affiliate to or for the
      credit or the account of any of the Borrowers against any of and all the
      obligations of such Person now or hereafter existing under this Agreement held
      by such Lender, irrespective of whether or not such Lender shall have made
      any
      demand under this Agreement and although such obligations may be unmatured.
      The
      rights of each Lender under this Section are in addition to other rights and
      remedies (including other rights of setoff) which such Lender may
      have.

     

    SECTION
      9.09.   Governing
      Law; Jurisdiction; Consent to Service of Process.
      (a)
      This
      Agreement shall be construed in accordance with and governed by the law of
      the
      State of New York.

     

    (b)  Each
      of
      the Borrowers hereby irrevocably and unconditionally submits, for itself and
      its
      property, to the nonexclusive jurisdiction of the Supreme Court of the State
      of
      New York sitting in New York County and of the United States District Court
      of
      the Southern District of New York, and any appellate court from any thereof,
      in
      any action or proceeding arising out of or relating to this Agreement, or for
      recognition or enforcement of any judgment, and each of the parties hereto
      hereby irrevocably and unconditionally agrees that all claims in respect of
      any
      such action or proceeding may be heard and determined in such New York State
      or,
      to the extent permitted by law, in such Federal court. Each of the parties
      hereto agrees that a final judgment in any such action or proceeding shall
      be
      conclusive and may be enforced in other jurisdictions by suit on the judgment
      or
      in any other manner provided by law. Nothing in this Agreement shall affect
      any
      right that the Administrative Agent, the Issuing Bank or any Lender may
      otherwise have to bring any action or proceeding relating to this Agreement
      against the Borrowers or their respective properties in the courts of any
      jurisdiction.

     

    (c)  Each
      of
      the Borrowers hereby irrevocably and unconditionally waives, to the fullest
      extent it may legally and effectively do so, any objection which it may now
      or
      hereafter have to the laying of venue of any suit, action or proceeding arising
      out of or relating to this Agreement in any court referred to in paragraph
      (b)
      of this Section. Each of the parties hereto hereby irrevocably waives, to the
      fullest extent permitted by law, the defense of an inconvenient forum to the
      maintenance of such action or proceeding in any such court.

     

    
      
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    (d)  Each
      party to this Agreement irrevocably consents to service of process in the manner
      provided for notices in Section
      9.01.
      Nothing
      in this Agreement will affect the right of any party to this Agreement to serve
      process in any other manner permitted by law.

     

    SECTION
      9.10.   WAIVER
      OF JURY TRIAL.
      EACH
      PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
      ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
      INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
      CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
      EACH
      PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
      OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
      WOULD
      NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
      ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
      INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
      CERTIFICATIONS IN THIS SECTION.

     

    SECTION
      9.11.   Headings.
      Article
      and Section headings and the Table of Contents used herein are for convenience
      of reference only, are not part of this Agreement and shall not affect the
      construction of, or be taken into consideration in interpreting, this
      Agreement.

     

    SECTION
      9.12.   Confidentiality.
      Each of
      the Administrative Agent, the Issuing Bank and the Lenders 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 applicable laws or
      regulations 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 the enforcement
      of rights hereunder, (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 Company and its obligations, (g) with the consent of the Company 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 the Administrative Agent, the Issuing Bank or any Lender on a
      non-confidential basis from a source other than the Company. For the purposes
      of
      this Section, “Information”
means
      all information received from the Company relating to the Company or its
      business, other than any such information that is available to the
      Administrative Agent, the Issuing Bank or any Lender on a non-confidential
      basis
      prior to disclosure by the Company; provided
      that, in
      the case of information received from the Company 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.

     

    
      
        70

      

      
         

        
          

        

      

      
         

      

    

    EACH
      LENDER ACKNOWLEDGES THAT INFORMATION AS DEFINED IN SECTION 9.12(a) FURNISHED
      TO
      IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION
      CONCERNING THE COMPANY 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
      COMPANY 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 COMPANY AND ITS AFFILIATES,
      THE CREDIT PARTIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES)
      AND
      ITS SECURITIES. ACCORDINGLY, EACH LENDER REPRESENTS TO THE COMPANY 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.

     

    SECTION
      9.13.   Interest
      Rate Limitation.
      Notwithstanding anything herein to the contrary, if at any time the interest
      rate applicable to any Loan, together with all fees, charges and other amounts
      which are treated as interest on such Loan under applicable law (collectively
      the “Charges”),
      shall
      exceed the maximum lawful rate (the “Maximum
      Rate”)
      which
      may be contracted for, charged, taken, received or reserved by the Lender
      holding such Loan in accordance with applicable law, the rate of interest
      payable in respect of such Loan hereunder, together with all Charges payable
      in
      respect thereof, shall be limited to the Maximum Rate and, to the extent lawful,
      the interest and Charges that would have been payable in respect of such Loan
      but were not payable as a result of the operation of this Section shall be
      cumulated and the interest and Charges payable to such Lender in respect of
      other Loans or periods shall be increased (but not above the Maximum Rate
      therefor) until such cumulated amount, together with interest thereon at the
      Federal Funds Effective Rate to the date of repayment, shall have been received
      by such Lender.

     

    SECTION
      9.14.   USA
      PATRIOT Act.
      Each
      Lender that is subject to the requirements of the USA Patriot Act (Title III
      of
      Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”) hereby notifies
      the Borrowers that pursuant to the requirements of the Act, it is required
      to
      obtain, verify and record information that identifies such Person, which
      information includes the names and addresses of the Borrowers and other
      information that will allow such Lender to identify the Borrowers in accordance
      with the Act.

     

    SECTION
      9.15.   Conversion
      of Currencies.
      (a)
      If, for
      the purpose of obtaining judgment in any court, it is necessary to convert
      a sum
      owing hereunder in one currency into another currency, each party hereto agrees,
      to the fullest extent that it may effectively do so, that 

     

    
      
        71

      

      
         

        
          

        

      

      
         

      

    

    the
      rate
      of exchange used shall be that at which in accordance with normal banking
      procedures in the relevant jurisdiction the first currency could be purchased
      with such other currency on the Business Day immediately preceding the day
      on
      which final judgment is given.

     

    (b)  The
      obligations of each Borrower in respect of any sum due to any party hereto
      or
      any holder of the obligations owing hereunder (the “Applicable Creditor”) shall,
      notwithstanding any judgment in a currency (the “Judgment Currency”) other than
      the currency in which such sum is stated to be due hereunder (the “Agreement
      Currency”), be discharged only to the extent that, on the Business Day following
      receipt by the Applicable Creditor of any sum adjudged to be so due in the
      Judgment Currency, the Applicable Creditor may in accordance with normal banking
      procedures in the relevant jurisdiction purchase the Agreement Currency with
      the
      Judgment Currency; if the amount of the Agreement Currency so purchased is
      less
      than the sum originally due to the Applicable Creditor in the Agreement
      Currency, the Company agrees, as a separate obligation and notwithstanding
      any
      such judgment, to indemnify the Applicable Creditor against such loss. The
      obligations of the Company contained in this Section
      9.15
      shall
      survive the termination of this Agreement and the payment of all other amounts
      owing hereunder.

     

    SECTION
      9.16.   Appointment.
      Each
      Subsidiary Borrower hereby authorizes and empowers the Company to act as its
      representative and attorney-in-fact for the purposes of signing documents and
      giving and receiving notices (including borrowing requests and interest
      elections hereunder) and other communications in connection with the this
      Agreement and the transactions contemplated thereby and for the purposes of
      modifying or amending any provision of this Agreement and further agrees that
      the Administrative Agent and each Lender may conclusively rely on the foregoing
      authorization.

     

        
      ARTICLE X  

     

    Guaranty

     

    SECTION
      10.01.   Guaranty.
      For
      valuable consideration, the receipt of which is hereby acknowledged, and to
      induce the Lenders to make advances to each Subsidiary Borrower, the Company
      hereby absolutely and unconditionally guarantees prompt payment when due,
      whether at stated maturity, upon acceleration or otherwise, and at all times
      thereafter, of any and all existing and future obligations of each Subsidiary
      Borrower to the Administrative Agent and the Lenders and their Affiliates,
      or
      any of them, under or with respect to the Credit Documents or any Swap
      Agreements, whether for principal, interest, fees, expenses or otherwise
      (collectively, the “Guaranteed
      Obligations”).

     

    SECTION
      10.02.   Waivers.
      The
      Company waives notice of the acceptance of this guaranty and of the extension
      or
      continuation of the Guaranteed Obligations or any part thereof. The Company
      further waives presentment, protest, notice of notices delivered or demand
      made
      on any Subsidiary Borrower or action or delinquency in respect of the Guaranteed
      Obligations or any part thereof, including any right to require the
      Administrative Agent and the Lenders to sue the Subsidiary Borrower, any other
      guarantor or any other Person obligated with respect to the Guaranteed
      Obligations or any part thereof, or otherwise to enforce payment thereof against
      any collateral securing the Guaranteed Obligations or any part thereof;
provided
      that if
      at any time

     

    
      
        72

      

      
         

        
          

        

      

      
         

      

    

    any
      payment of any portion of the Guaranteed Obligations is rescinded or must
      otherwise be restored or returned upon the insolvency, bankruptcy or
      reorganization of any of the Subsidiary Borrowers or otherwise, the Company’s
      obligations hereunder with respect to such payment shall be reinstated at such
      time as though such payment had not been made and whether or not the
      Administrative Agent or the Lenders are in possession of this guaranty. The
      Administrative Agent and the Lenders shall have no obligation to disclose or
      discuss with the Company their assessments of the financial condition of the
      Subsidiary Borrowers.

     

    SECTION
      10.03.   Guaranty
      Absolute.
      This
      guaranty is a guaranty of payment and not of collection, is a primary obligation
      of the Company and not one of surety, and the validity and enforceability of
      this guaranty shall be absolute and unconditional irrespective of, and shall
      not
      be impaired or affected by any of the following: (a) any extension, modification
      or renewal of, or indulgence with respect to, or substitutions for, the
      Guaranteed Obligations or any part thereof or any agreement relating thereto
      at
      any time; (b) any failure or omission to enforce any right, power or remedy
      with
      respect to the Guaranteed Obligations or any part thereof or any agreement
      relating thereto, or any collateral; (c) any waiver of any right, power or
      remedy or of any default with respect to the Guaranteed Obligations or any
      part
      thereof or any agreement relating thereto or with respect to any collateral;
      (d)
      any release, surrender, compromise, settlement, waiver, subordination or
      modification, with or without consideration, of any collateral, any other
      guaranties with respect to the Guaranteed Obligations or any part thereof,
      or
      any other obligation of any Person with respect to the Guaranteed Obligations
      or
      any part thereof; (e) the enforceability or validity of the Guaranteed
      Obligations or any part thereof or the genuineness, enforceability or validity
      of any agreement relating thereto or with respect to any collateral; (f) the
      application of payments received from any source to the payment of obligations
      other than the Guaranteed Obligations, any part thereof or amounts which are
      not
      covered by this guaranty even though the Administrative Agent and the Lenders
      might lawfully have elected to apply such payments to any part or all of the
      Guaranteed Obligations or to amounts which are not covered by this guaranty;
      (g)
      any change in the ownership of any Subsidiary Borrower or the insolvency,
      bankruptcy or any other change in the legal status of any Subsidiary Borrower;
      (h) the change in or the imposition of any law, decree, regulation, order or
      other governmental act which does or might impair, delay or in any way affect
      the validity, enforceability or the payment when due of the Guaranteed
      Obligations; (i) the failure of the Company or any Subsidiary Borrower to
      maintain in full force, validity or effect or to obtain or renew when required
      all governmental and other approvals, licenses or consents required in
      connection with the Guaranteed Obligations or this guaranty, or to take any
      other action required in connection with the performance of all obligations
      pursuant to the Guaranteed Obligations or this guaranty; (j) the existence
      of
      any claim, setoff or other rights which the Company may have at any time against
      any Subsidiary Borrower or any other Person in connection herewith or an
      unrelated transaction; or (k) any other circumstances, whether or not similar
      to
      any of the foregoing, which could constitute a defense to a guarantor; all
      whether or not the Company shall have had notice or knowledge of any act or
      omission referred to in the foregoing clauses
      (a)
      through
(k)
      of this
      paragraph. It is agreed that the Company’s liability hereunder is several and
      independent of any other guaranties or other obligations at any time in effect
      with respect to the Guaranteed Obligations or any part thereof and that the
      Company’s liability hereunder may be enforced regardless of the existence,
      validity, enforcement or non-enforcement of any such other guaranties or other
      obligations or any provision of any applicable law or regulation purporting
      to

     

    
      
        73

      

      
         

        
          

        

      

      
         

      

    

    prohibit
      payment by any Subsidiary Borrower of the Guaranteed Obligations in the manner
      agreed upon between such Subsidiary Borrower and the Administrative Agent and
      the Lenders.

     

    SECTION
      10.04.   Subrogation.
      The
      Company hereby agrees not to assert any right, claim or cause of action,
      including, without limitation, a claim for subrogation, reimbursement,
      indemnification or otherwise, against any Subsidiary Borrower arising out of
      or
      by reason of this guaranty or the obligations hereunder, including, without
      limitation, the payment or securing or purchasing of any of the Guaranteed
      Obligations by the Company unless and until the Guaranteed Obligations are
      indefeasibly paid in full and any commitment to lend under this Agreement and
      any other Credit Documents is terminated.

     

    SECTION
      10.05.   Limitation
      on Obligations. 

     

    (i)  The
      provisions of this guaranty are severable, and in any action or proceeding
      involving any state corporate law, or any state, federal or foreign bankruptcy,
      insolvency, reorganization or other law affecting the rights of creditors
      generally, if the obligations of the Company under this guaranty would otherwise
      be held or determined to be avoidable, invalid or unenforceable on account
      of
      the amount of the Company’s liability under this guaranty, then, notwithstanding
      any other provision of this guaranty to the contrary, the amount of such
      liability shall, without any further action by the Company, the Administrative
      Agent or any Lender, be automatically limited and reduced to the highest amount
      that is valid and enforceable as determined in such action or proceeding (such
      highest amount determined hereunder being the Company’s “Maximum Liability”).
This
      Section
      10.05
      with
      respect to the Maximum Liability of the Company is intended solely to preserve
      the rights of the Administrative Agent of the Lenders hereunder to the maximum
      extent not subject to avoidance under applicable law, and neither the Company
      nor any other person or entity shall have any right or claim under this
Section
      10.05
      with
      respect to the Maximum Liability, except to the extent necessary so that the
      obligations of the Company hereunder shall not be rendered voidable under
      applicable law.

     

    (ii)  The
      Company agrees that the Guaranteed Obligations may at any time and from time
      to
      time exceed the Maximum Liability of the Company without impairing this guaranty
      or affecting the rights and remedies of the Administrative Agent and the Lenders
      hereunder. Nothing in this Section
      10.05(b)
      shall be
      construed to increase the Company’s obligations hereunder beyond its Maximum
      Liability.

     

    SECTION
      10.06.   Acceleration.
      The
      Company agrees that, as between the Company on the one hand, and the Lenders
      and
      the Administrative Agent, on the other hand, the obligations of each Subsidiary
      Borrower guaranteed under this Article X
      may be
      declared to be forthwith due and payable, or may be deemed automatically to
      have
      been accelerated, as provided in Article
      VII
      hereof
      for purposes of this Article X,
      notwithstanding any stay, injunction or other prohibition (whether in a
      bankruptcy proceeding affecting such Subsidiary Borrower or otherwise)
      preventing such declaration as against such Subsidiary Borrower and that, in
      the
      event of such declaration or automatic acceleration, such obligations (whether
      or not due and payable by such Subsidiary Borrower) shall forthwith become
      due
      and payable by the Company for purposes of this Article X.

     

    
      
        74

      

      
         

        
          

        

      

      
         

      

    

    SECTION
      10.07.   Termination
      Date.
      This
      guaranty shall continue in effect until the date the Commitments shall have
      been
      terminated or otherwise expired in accordance with its terms and all of the
      Guaranteed Obligations have been paid in full.

     

    SECTION
      10.08.   Foreign
      Currency.
      The
      specification of payment in a specific currency at a specific place and time
      pursuant to this Agreement, any Note or any other Loan Document is essential.
      That currency or those currencies are also the currency of account and payment
      under this guaranty. If the Company is unable for any reason to effect payment
      of a specific currency (other than Dollars) as required by the preceding
      sentence or if the Company defaults in the payment when due of any payment
      of a
      specific currency (other than Dollars) under this guaranty, the Administrative
      Agent may, at its option, require such payment to be made to the Administrative
      Agent’s principal office in the equivalent amount in Dollars at the
      Administrative Agent’s then current selling rate for electronic transfers of
      that currency to the place or places where the Guaranteed Obligations were
      payable. In the event that any payment, whether pursuant to a judgment or
      otherwise, does not result in payment of the amount of currency due under this
      guaranty, upon conversion to the currency of account and transfer to the place
      specified for payment, the Administrative Agent and the Lenders shall have
      an
      independent cause of action against the Company for the deficiency.

     

    

     

    
      
        
          

        

        75

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

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

     

                                                        SELECT
      COMFORT
      CORPORATION, as a

                                                        Borrower

     

                                                        By: 
/s/
      James
      C. Raabe
                                                    Name: 
James
      C.
      Raabe

                                                        Title: 
SVP
      and
      Chief Financial Officer

     

     

                                                        SELECT
      COMFORT RETAIL
      CORPORATION, as a

                                                          Borrower

       

                                                          By: 
/s/
        James
        C. Raabe
                                                    Name: 
James
        C.
        Raabe

                                                          Title: 
SVP
        and
        Chief Financial Officer

       

       

                                                          SELECT
        COMFORT DIRECT
        CORPORATION, as a

                                                            Borrower

         

                                                            By: 
/s/
          James
          C. Raabe
                                                    Name: 
James
          C.
          Raabe

                                                            Title: 
SVP
          and
          Chief Financial Officer

         

         

                                                            SELECT
          COMFORT SC
          CORPORATION, as a

                                                              Borrower

           

                                                              By: 
/s/
            James
            C. Raabe
                                                    Name: 
James
            C.
            Raabe

                                                              Title: 
SVP
            and
            Chief Financial Officer

        

      

    

     

    
      
        
          

          Signature
            Page to Credit Agreement

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    
                                                    JPMORGAN
      CHASE BANK,
      NATIONAL

                                                        ASSOCIATION, individually
      and as

                                                        Administrative
      Agent

     

                                                        By: 
      /s/ James M. Sumoski
                                                    Name: 
James
      M.
      Sumoski

                                                        Title: 
Vice
      President

     

    
      
        
          

          Signature
            Page to Credit Agreement

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    
 

                                                        BANK
      OF AMERICA,
      N.A., individually and as

                                                          Syndication
        Agent

       

                                                          By: 
        /s/ Steven K. Kessler
                                                    Name: 
Steven
        K.
        Kessler

                                                          Title: 
Senior
        Vice President

    

    
 

    
 

    
      
        
          
            

            Signature
              Page to Credit Agreement

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

     

                                                        CITICORP
      USA, INC.

       

                                                          By: 
        /s/ Carrie Stead
                                                    Name: 
Carrie
        Stead

                                                          Title: 
Vice
        President

       

       

    

    
      
        
          

          Signature
            Page to Credit Agreement

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

     

                                                        WELLS
      FARGO BANK,
      NATIONAL

                                                          ASSOCIATION

       

                                                          By: 
        /s/ Kent A. Paulson
                                                    Name: 
Kent
        A.
        Paulson

                                                          Title: 
Vice
        President

     

    
      
        
          

          Signature
            Page to Credit Agreement

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

     

                                                        BRANCH
      BANKING AND
      TRUST CO.

       

       

                                                          By: 
        /s/ Gregory A. Drabik
                                                    Name: 
Gregory
        A. Drabik

                                                          Title: 
        Assistant Vice President

       

       

    

     

    
      
        

        Signature
          Page to Credit Agreement

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    Schedule
      1.01

    

    PRICING
      SCHEDULE

    

    

    
      	
               

              Applicable
                Rate

               

            	
               

              Level
                I 

                 
                Status

               

            	
               

              Level
                II 

              Status

               

            	
               

              Level
                III 

              Status

               

            	
               

              Level
                IV 

              Status

               

            	
               

              Level
                V 

              Status

               

            
	
               

              Eurocurrency

              Spread

            	
               

               

              0.41
                %

               

            	
               

               

              0.50%

               

            	
               

               

              0.60%

               

            	
               

               

              0.70%

               

            	
               

               

              0.80%

               

            
	
              Facility
                Fee Rate

            	
              0.09%

               

            	
              0.125%

               

            	
              0.15%

               

            	
              0.175%

               

            	
              0.20%

               

            

    

    

    For
      the
      purposes of this Schedule, the following terms have the following meanings,
      subject to the final paragraph of this Schedule: 

    

    “Financials”
      means the annual or quarterly financial statements of the Company delivered
      pursuant to Section
      5.01
      of this
      Agreement.

    

    “Level
      I
      Status” exists at any date if, as of the last day of the fiscal quarter of the
      Company referred to in the most recent Financials, the Leverage Ratio is less
      than 1.00 to 1.00.

    

    “Level
      II
      Status” exists at any date if, as of the last day of the fiscal quarter of the
      Company referred to in the most recent Financials, (i) the Company has not
      qualified for Level I Status and (ii) the Leverage Ratio is less than 1.50
      to
      1.00.

    

    “Level
      III Status” exists at any date if, as of the last day of the fiscal quarter of
      the Company referred to in the most recent Financials, (i) the Company has
      not
      qualified for Level I Status or Level II Status and (ii) the Leverage Ratio
      is
      less than 2.00 to 1.00.

    

    “Level
      IV
      Status” exists at any date if, as of the last day of the fiscal quarter of the
      Company referred to in the most recent Financials, (i) the Company has not
      qualified for Level I Status, Level II Status or Level III Status and (ii)
      the
      Leverage Ratio is less than 2.50 to 1.00.

    

    “Level
      V
      Status” exists at any date if the Company has not qualified for Level I Status,
      Level II Status, Level III Status or Level IV Status.

    

    “Status”
      means Level I Status, Level II Status, Level III Status, Level IV Status, or
      Level V Status.

    

    The
      Applicable Rate shall be determined in accordance with the foregoing table
      based
      on the Company’s Status as reflected in the then most recent Financials.
      Adjustments, if any, to the Applicable Rate shall be effective five Business
      Days after the Administrative Agent has received the applicable Financials.
      If
      the Company fails to deliver the Financials to the Administrative Agent at
      the
      time required pursuant to the Credit Agreement, then the Applicable Rate shall
      be the highest Applicable Rate set forth in the foregoing table until five
      days
      after such Financials are so 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    delivered.
      Until adjusted commencing with the delivery of the Company’s Financials with
      respect to the fiscal quarter ending June 30, 2006, Level I Status shall be
      deemed to exist.

    

    

    
      
        2

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    Schedule
      2.01

    

    Commitments

    

    

    
      	
              JPMorgan
                Chase Bank, National Association

            	
              $27,000,000

            
	
              Bank
                of America, N.A.

            	
              $23,000,000

            
	
              Citicorp
                USA, Inc.

            	
              $20,000,000

            
	
              Wells
                Fargo Bank, National Association

            	
              $15,000,000

            
	
              Branch
                Banking and Trust Co.

            	
              $15,000,000

            
	
              TOTAL

            	
              $100,000,000

            

    

    

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      A

     

    ASSIGNMENT
      AND ASSUMPTION

     

    This
      Assignment and Assumption (the “Assignment
      and Assumption”)
      is
      dated as of the Effective Date set forth below and is entered into by and
      between [Insert
      name of Assignor]
      (the
“Assignor”)
      and
      [Insert
      name of Assignee]
      (the
“Assignee”).
      Capitalized terms used but not defined herein shall have the meanings given
      to
      them in the Credit Agreement identified below (as amended, the “Credit
      Agreement”),
      receipt of a copy of which is hereby acknowledged by the Assignee. The Standard
      Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed
      to
      and incorporated herein by reference and made a part of this Assignment and
      Assumption as if set forth herein in full.

     

    For
      an
      agreed consideration, the Assignor hereby irrevocably sells and assigns to
      the
      Assignee, and the Assignee hereby irrevocably purchases and assumes from the
      Assignor, subject to and in accordance with the Standard Terms and Conditions
      and the Credit Agreement, as of the Effective Date inserted by the
      Administrative Agent as contemplated below (i) all of the Assignor’s rights and
      obligations in its capacity as a Lender under the Credit Agreement and any
      other
      documents or instruments delivered pursuant thereto to the extent related to
      the
      amount and percentage interest identified below of all of such outstanding
      rights and obligations of the Assignor under the respective facilities
      identified below (including any letters of credit, guarantees, and swingline
      loans included in such facilities) and (ii) to the extent permitted to be
      assigned under applicable law, all claims, suits, causes of action and any
      other
      right of the Assignor (in its capacity as a Lender) against any Person, whether
      known or unknown, arising under or in connection with the Credit Agreement,
      any
      other documents or instruments delivered pursuant thereto or the loan
      transactions governed thereby or in any way based on or related to any of the
      foregoing, including contract claims, tort claims, malpractice claims, statutory
      claims and all other claims at law or in equity related to the rights and
      obligations sold and assigned pursuant to clause (i) above (the rights and
      obligations sold and assigned pursuant to clauses (i) and (ii) above being
      referred to herein collectively as the “Assigned
      Interest”).
      Such
      sale and assignment is without recourse to the Assignor and, except as expressly
      provided in this Assignment and Assumption, without representation or warranty
      by the Assignor.

     

    1. Assignor:                                                                  
              

     

    2. Assignee:                                                                    

                           
      [and is an Affiliate/Approved Fund of [identify Lender]1]

     
      

    3. Borrower(s):                                                                      

     

    4. Administrative
      Agent: ______________________,
      as the administrative agent under the Credit Agreement

     

    5. Credit
      Agreement: The
      $100,000,000 Credit Agreement dated as of June 9, 2006 among Select Comfort
      Corporation, the Subsidiary Borrowers party thereto, the Lenders
      parties   

       
      thereto, JPMorgan Chase Bank, National Association, as Administrative Agent,
      and
      the other agents parties thereto.

     

     

      
        

      

    

    1 
Select
      as applicable.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               

            	
               

            

    

     

    6. 
Assigned
      Interest:

     

    
      	 	
              Aggregate
                Amount of Commitment/Loans for all Lenders

            	
              Amount
                of Commitment/Loans Assigned

            	
              Percentage
                Assigned of Commitment/Loans2 

            
	
              Revolving
                Credit

            	
              $

            	
              $

            	
              %

            
	 	 	 	 

    

    

     

    Effective
      Date: _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND
      WHICH
      SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
      THEREFOR.]

     

    The
      Assignee agrees to deliver to the Administrative Agent a completed
      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 Credit Parties 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.

     

    The
      terms
      set forth in this Assignment and Assumption are hereby agreed to:

     

    ASSIGNOR

     

    [NAME
      OF
      ASSIGNOR]

     

    By:

                                                                    Title:

     

    ASSIGNEE

     

    [NAME
      OF
      ASSIGNEE]

     

    By:

                                                       Title:

     

    [Consented
      to and]3 
      Accepted:

     

    JPMORGAN
      CHASE BANK, NATIONAL ASSOCIATION, as

    Administrative
      Agent and Issuing Bank 

     

    
      

    

    
      2 Set
        forth, to at least 9 decimals, as a percentage of the Commitment/Loans of
        all
        Lenders thereunder.

      
        3 To
          be
          added only if the consent of the Administrative Agent is required by the
          terms
          of the Credit Agreement.

         

      

    

    
      
        2

      

      
         

        
          

        

      

      
         

      

    

     

    By

    Title:

     

     

    [Consented
      to:]4 

     

    SELECT
      COMFORT CORPORATION

     

    By

     

    Title:

     

    

    

      
        
          
            

          

        

        4 To
          be
          added only if the consent of the Company is required by the terms of the
          Credit
          Agreement.

      

    

    
      
        3

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    ANNEX
      1

     

    STANDARD
      TERMS AND CONDITIONS FOR

    ASSIGNMENT
      AND ASSUMPTION

     

    1. Representations
      and Warranties.

     

    1.1 Assignor.
      The
      Assignor (a) represents and warrants that (i) it is the legal and beneficial
      owner of the Assigned Interest, (ii) the Assigned Interest is free and clear
      of
      any lien, encumbrance or other adverse claim and (iii) it has full power and
      authority, and has taken all action necessary, to execute and deliver this
      Assignment and Assumption and to consummate the transactions contemplated
      hereby; and (b) assumes no responsibility with respect to (i) any statements,
      warranties or representations made in or in connection with the Credit Agreement
      or any other Credit Document, (ii) the execution, legality, validity,
      enforceability, genuineness, sufficiency or value of the Credit Documents or
      any
      collateral thereunder, (iii) the financial condition of the Company, any of
      its
      Subsidiaries or Affiliates or any other Person obligated in respect of any
      Credit Document or (iv) the performance or observance by the Company, any of
      its
      Subsidiaries or Affiliates or any other Person of any of their respective
      obligations under any Credit Document.

     

    1.2. Assignee.
      The
      Assignee (a) represents and warrants that (i) it has full power and authority,
      and has taken all action necessary, to execute and deliver this Assignment
      and
      Assumption and to consummate the transactions contemplated hereby and to become
      a Lender under the Credit Agreement, (ii) it satisfies the requirements, if
      any,
      specified in the Credit Agreement that are required to be satisfied by it in
      order to acquire the Assigned Interest and become a Lender, (iii) from and
      after
      the Effective Date, it shall be bound by the provisions of the Credit Agreement
      as a Lender thereunder and, to the extent of the Assigned Interest, shall have
      the obligations of a Lender thereunder, (iv) it has received a copy of the
      Credit Agreement, together with copies of the most recent financial statements
      delivered pursuant to Section
      5.01
      thereof,
      as applicable, and such other documents and information as it has deemed
      appropriate to make its own credit analysis and decision to enter into this
      Assignment and Assumption and to purchase the Assigned Interest on the basis
      of
      which it has made such analysis and decision independently and without reliance
      on the Administrative Agent or any other Lender, and (v) if it is a Foreign
      Lender, attached to the Assignment and Assumption is any documentation required
      to be delivered by it pursuant to the terms of the Credit Agreement, duly
      completed and executed by the Assignee; and (b) agrees that (i) it will,
      independently and without reliance on the Administrative Agent, the Assignor
      or
      any other Lender, and based on such documents and information as it shall deem
      appropriate at the time, continue to make its own credit decisions in taking
      or
      not taking action under the Credit Documents, and (ii) it will perform in
      accordance with their terms all of the obligations which by the terms of the
      Credit Documents are required to be performed by it as a Lender.

     

    2. Payments.
      From
      and after the Effective Date, the Administrative Agent shall make all payments
      in respect of the Assigned Interest (including payments of principal, interest,
      fees and other amounts) to the Assignor for amounts which have accrued to but
      excluding the Effective Date and to the Assignee for amounts which have accrued
      from and after the Effective Date.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3. General
      Provisions.
      This
      Assignment and Assumption shall be binding upon, and inure to the benefit of,
      the parties hereto and their respective successors and assigns. This Assignment
      and Assumption may be executed in any number of counterparts, which together
      shall constitute one instrument. Delivery of an executed counterpart of a
      signature page of this Assignment and Assumption by telecopy shall be effective
      as delivery of a manually executed counterpart of this Assignment and
      Assumption. This Assignment and Assumption shall be governed by, and construed
      in accordance with, the law of the State of New York.

    

    

    
      
        2

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      B

    

    

    

    [FORM
      OF]

     

    BORROWING
      SUBSIDIARY AGREEMENT

     

    BORROWING
      SUBSIDIARY AGREEMENT dated as of [_____], among Select Comfort Corporation,
      a
      Minnesota corporation (the “Company”),
      [Name
      of Subsidiary Borrower], a [__________] (the “New
      Borrowing Subsidiary”),
      and
      JPMorgan Chase Bank, National Association, as Administrative Agent (the
“Administrative
      Agent”).

     

    Reference
      is hereby made to the Credit Agreement dated as of June 9, 2006 (as amended,
      supplemented or otherwise modified from time to time, the “Credit
      Agreement”),
      among
      the Company, the Subsidiary Borrowers from time to time party thereto, the
      Lenders from time to time party thereto, JPMorgan Chase Bank, National
      Association, as Administrative Agent and Bank of America, N.A., as Syndication
      Agent. Capitalized terms used herein but not otherwise defined herein shall
      have
      the meanings assigned to such terms in the Credit Agreement. Under the Credit
      Agreement, the Lenders have agreed, upon the terms and subject to the conditions
      therein set forth, to make Loans to certain Subsidiary Borrowers (collectively
      with the Company, the “Borrowers”),
      and
      the Company and the New Borrowing Subsidiary desire that the New Borrowing
      Subsidiary become a Subsidiary Borrower. In addition, the New Borrowing
      Subsidiary hereby authorizes the Company to act on its behalf as and to the
      extent provided for in Article
      II
      of the
      Credit Agreement. [Notwithstanding
      the preceding sentence, the New Borrowing Subsidiary hereby designates the
      following officers as being authorized to request Borrowings under the Credit
      Agreement on behalf of the New Subsidiary Borrower and sign this Borrowing
      Subsidiary Agreement and the other Credit Documents to which the New Borrowing
      Subsidiary is, or may from time to time become, a party:
      [______________].]

     

    Each
      of
      the Company and the New Borrowing Subsidiary represents and warrants that the
      representations and warranties of the Company in the Credit Agreement relating
      to the New Borrowing Subsidiary and this Agreement are true and correct on
      and
      as of the date hereof, other than representations given as of a particular
      date,
      in which case they shall be true and correct as of that date. [The Company
      and
      the New Borrowing Subsidiary further represent and warrant that the execution,
      delivery and performance by the New Borrowing Subsidiary of the transactions
      contemplated under this Agreement and the use of any of the proceeds raised
      in
      connection with this Agreement will not contravene or conflict with the
      provisions of section 151 of the Companies Act 1985 of England and Wales (as
      amended).]5 [INSERT
      OTHER PROVISIONS REASONABLY REQUESTED BY ADMINISTRATIVE AGENT OR ITS COUNSEL]
      The Company agrees that the guarantee of the Company contained in the Credit
      Agreement will apply to the obligations of the New Borrowing Subsidiary. Upon
      execution of this Agreement by each of the Company, the New Borrowing Subsidiary
      and the Administrative Agent, the New Borrowing Subsidiary shall be a party
      to
      the Credit Agreement and shall

     

     

     

     

    
      
        

      

    

    
      1 To
        be included only if a New Borrowing Subsidiary will be a Borrower organized
        under the laws of England and Wales.

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    constitute
      a “Subsidiary Borrower” for all purposes thereof, and the New Borrowing
      Subsidiary hereby agrees to be bound by all provisions of the Credit
      Agreement.

     

        This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York.

     

    

     

    [Signature
      Page Follows]

    
      
        2

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

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

     

    
      	 	
              SELECT
                COMFORT CORPORATION

               

               

               

              By:
                _________________________________

                 Name:

                 Title:

               

            
	 	 
	 	
              [NAME
                OF NEW BORROWING SUBSIDIARY]

               

               

               

              By:
                _________________________________

                Name:

                Title:

               

            
	 	 
	 	
              JPMORGAN
                CHASE BANK, NATIONAL ASSOCIATION, as

              Administrative
                Agent

               

               

              By:
                _________________________________

                Name:

                Title:

               

            

    

    

    

    

      

        
          
            3

          

          
            
            

            
              

            

          

          
            
            

          

        

    

    EXHIBIT
      C

     

    MANDATORY
      COST RATE

    

    1.    Definitions.

    

    In
      this
Exhibit
      E:

    

    “Act”
      means the Bank of England Act of 1998.

    

    The
      terms
“Eligible Liabilities” and “Special Deposits” have the meanings ascribed to the
      them under or pursuant to the Act or by the Bank of England (as may be
      appropriate), on the day of the application of the formula set forth in this
      Exhibit
      C.

    

    “Fee
      Base” has the meaning ascribed to it for the purposes of, and shall be
      calculated in accordance with, the Fees Regulations.

    

    “Fees
      Regulations” means, as appropriate, either: (i) the Banking Supervision (Fees)
      Regulations 1998, or (ii) such regulations as from time to time may be in force,
      relating to the payment of fees for banking supervision in the United
      Kingdom.

    

    “FSA”
      means the Financial Services Authority.

    

    2. Calculation
      of the Mandatory Cost Rate.

    

    The
      Mandatory Cost Rate is an incremental per annum addition to the interest rate
      charged with respect to each Eurocurrency Loan to compensate the Lenders for
      the
      cost attributable to such Eurocurrency Loan resulting from the imposition from
      time to time under or pursuant to the Act and/or by the Bank of England and/or
      the FSA (or other United Kingdom governmental authorities or agencies) of a
      requirement to place non-interest bearing or Special Deposits (whether interest
      bearing or not) with the Bank of England and/or pay fees to the FSA calculated
      by reference to the liabilities used to fund the relevant Eurocurrency
      Loan.

    

    The
      “Mandatory Cost Rate” is the rate determined by the Administrative Agent to be
      equal to the rate (rounded upward, if necessary, to the next higher 1/100 of
      1%)
      resulting from the application of the following formula:

    

    For
      Sterling:

    

    AB
      +C(B-D) + E x 0.01

    100
      -
      (A+C)

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    For
      other
      Agreed Currencies:

    

    E
      x
      0.01

      
      300

    

    where
      on
      the day of application of the formula,

    

    
      	 	
              A

            	
              is
                the percentage of Eligible Liabilities (in excess of any stated minimum)
                which the Administrative Agent is from time to time required to maintain
                as an interest free cash ratio deposit with the Bank of
                England.

            

    

    

    
      	 	
              B

            	
              is
                the Eurocurrency Base Rate applicable to the related Eurocurrency
                Loan.

            

    

    

    
      	 	
              C

            	
              is
                the level of interest-bearing Special Deposits, expressed as a percentage
                of Eligible Liabilities, which the Administrative Agent is required
                from
                time to time to maintain by the Bank of England (or other United
                Kingdom
                governmental authority or agency).

            

    

    

    
      	 	
              D

            	
              is
                the percentage rate per annum payable by the Bank of England to the
                Administrative Agent on Special
                Deposits.

            

    

    

    
      	 	
              E

            	
              is
                the rate payable by the Administrative Agent to the FSA pursuant
                to the
                Fees Regulations and expressed in pounds per 1,000,000 Sterling of
                the Fee
                Base of the Administrative Agent.

            

    

    

    (A,
      B, C
      and D are to be expressed in the formula as numbers and not as percentages.
      A
      negative result obtained from subtracting D from B shall be counted as
      zero.)

    

    The
      Mandatory Cost Rate attributable to a Eurocurrency Loan for any period shall
      be
      calculated at or about 11:00 a.m. (London time) on the first day of such period
      for the duration of such period.

    

    The
      determination of the Mandatory Cost Rate by the Administrative Agent in relation
      to any period shall, in the absence of manifest error, be conclusive and binding
      on all parties hereto.

    

    

    
      
        2

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      D

     

    [FORM
      OF]

     

    BORROWING
      SUBSIDIARY TERMINATION

     

    JPMorgan
      Chase Bank, National Association,

    as
      Administrative Agent

    for
      the
      Lenders referred to below

    Chase
      Tower

    Chicago,
      Illinois 60670

    Attention:
      [__________]

    

    [Date]

     

    Ladies
      and Gentlemen:

     

    The
      undersigned, Select Comfort Corporation (the “Company”),
      refers to the Credit Agreement dated as of June 9, 2006 (as amended,
      supplemented or otherwise modified from time to time, the “Credit
      Agreement”),
      among
      the Company, the Subsidiary Borrowers from time to time party thereto, JPMorgan
      Chase Bank, National Association, as Administrative Agent and Bank of America,
      N.A., as Syndication Agent. Capitalized terms used and not otherwise defined
      herein shall have the meanings assigned to such terms in the Credit
      Agreement.

     

    The
      Company hereby terminates the status of [______________] (the “Terminated
      Borrowing Subsidiary”)
      as a
      Subsidiary Borrower under the Credit Agreement. [The Company represents and
      warrants that no Loans made to the Terminated Borrowing Subsidiary are
      outstanding as of the date hereof and that all amounts payable by the Terminated
      Borrowing Subsidiary in respect of interest and/or fees (and, to the extent
      notified by the Administrative Agent or any Lender, any other amounts payable
      under the Credit Agreement) pursuant to the Credit Agreement have been paid
      in
      full on or prior to the date hereof.] [The Company acknowledges that the
      Terminated Borrowing Subsidiary shall continue to be a Borrower until such
      time
      as all Loans made to the Terminated Borrowing Subsidiary shall have been paid
      and all amounts payable by the Terminated Borrowing Subsidiary in respect of
      interest and/or fees (and, to the extent notified by the Administrative Agent
      or
      any Lender, any other amounts payable under the Credit Agreement) pursuant
      to
      the Credit Agreement shall have been paid in full, provided
      that the
      Terminated Borrowing Subsidiary shall not have the right to make further
      Borrowings under the Credit Agreement.]

     

    

     

    [Signature
      Page Follows]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    This
      instrument shall be construed in accordance with and governed by the laws of
      the
      State of New York.

     

            Very
      truly yours,

    

            SELECT
      COMFORT
      CORPORATION

    

    

            
By:
      ______________________________

            
Name:

            
      Title:

    

    

    Copy
      to:     JPMorgan Chase Bank, National
      Association

    131
      South
      Dearborn Street

    Chicago,
      Illinois 60603

    

    

     

    
      
        2

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