Document:

EXHIBIT 10.3

 

Exhibit 10.3

September 13, 2004

Mr. Murray S. Kessler

President

U.S. Smokeless Tobacco Company

100 West Putnam Avenue

Greenwich, CT 06830

Dear Mr. Kessler:

          U.S. Smokeless Tobacco Company (the “Company”), a wholly owned subsidiary
of UST Inc. (“UST”) is pleased to provide you with this letter agreement (the
“Agreement”). The Board of Directors of the Company and the Board of Directors
of UST (together, the “Boards of Directors” or the “Board”) consider it
essential to the best interests of the Company and the interests of UST’s
stockholders to foster the continuous employment of key management personnel.
In addition, the Board recognizes that, as is the case with many publicly held
corporations, the possibility of a change in control of UST may exist, and that
the uncertainty and questions which may arise among Company management as a
result of the foregoing may cause the departure or distraction of Company
management personnel to the detriment of the Company and of UST and its
stockholders.

          In order to induce you to remain in the employ of the Company, the Company
and UST agree that you shall receive the severance benefits set forth in this
Agreement in the event your employment with the Company is terminated under the
circumstances described below either prior to or subsequent to a “Change in
Control” of UST (as defined in Section 2).

	1.	 	Term of Agreement. This Agreement shall commence on the date hereof and
shall continue in effect through September 13, 2008; provided, however, that
if a Change in Control, as defined in Section 2, shall have occurred during the
term of this Agreement, this Agreement shall continue in effect for a period of
not less than twenty-four (24) months beyond the month in which such Change in
Control occurred. You acknowledge and agree that the non-renewal of the term
of this Agreement shall not be considered a termination of employment hereunder
for any purpose, including entitlement to severance payments or any other
benefits provided for herein.

 

 

	2.	 	Change in Control. For purposes of this Agreement, a change in control of
UST (“Change in Control”) shall be deemed to have occurred if:
	 
	 	 	(A) any “person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)), other
than (1) UST or any of its subsidiaries, (2) any “person” who on the date
hereof is a director or officer of UST, (3) any trustee or other
fiduciary holding securities under an employee benefit plan of UST, (4)
an underwriter temporarily holding securities pursuant to an offering of
such securities, or (5) any corporation owned, directly or indirectly, by
the stockholders of UST in substantially the same proportions as their
ownership of stock of UST (a “Person”), is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act (a “Beneficial
Owner”)), directly or indirectly, of securities of UST (not including in
the securities beneficially owned by such Person any securities acquired
directly from UST or its affiliates) representing 20% or more of the
combined voting power of UST’s then outstanding securities, excluding
any Person who becomes such a Beneficial Owner in connection with a
transaction described in clause (C)(1) below; or
	 
	 	 	(B) the following individuals cease for any reason to constitute a
majority of the number of directors then serving: individuals who, on the
date hereof, constitute the Board and any new director (other than a
director whose initial assumption of office is in connection with an
actual or threatened election contest, including but not limited to a
consent solicitation, relating to the election of directors of UST) whose
appointment or election by the Board or nomination for election by UST’s
stockholders was approved or recommended by a vote of at least two-thirds
(2/3) of the directors then still in office who either were directors on
the date hereof or whose appointment, election or nomination for election
was previously so approved or recommended; or
	 
	 	 	(C) there is consummated a merger or consolidation of UST or any direct
or indirect subsidiary of UST with any other corporation, other than (1)
a merger or consolidation which would result in the voting securities of
UST outstanding immediately prior to such merger or consolidation
continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity or any parent
thereof), in combination with the ownership of any trustee or other
fiduciary holding securities under an employee benefit plan of UST or any
subsidiary of UST, at least 80% of the combined voting power of the
securities of UST or such surviving entity or any parent thereof
outstanding immediately after such merger or consolidation, or (2) a
merger or consolidation effected to implement a recapitalization of UST
(or similar transaction) in which no Person is or becomes the Beneficial
Owner, directly or indirectly, of securities of UST (not including in the
securities Beneficially Owned by such Person any securities acquired
directly from UST or its subsidiaries) representing 20% or more of the
combined voting power of UST’s then outstanding securities; or

2

 

	 	 	(D) the stockholders of UST approve a plan of complete liquidation or
dissolution of UST or there is consummated an agreement for the sale or
disposition by UST of all or substantially all of UST’s assets, other
than a sale or disposition by UST of all or substantially all of UST’s
assets to an entity, at least 80% of the combined voting power of the
voting securities of which are owned by stockholders of UST in
substantially the same proportions as their ownership of UST immediately
prior to such sale.

	3.	 	Termination of Employment.

	(a)	 	General. You shall be entitled to the benefits provided in
Section 4 upon the termination of your employment during the term of
this Agreement prior to a Change in Control unless such termination
is (i) because of your death or Disability, (ii) by the Company for
Cause, or (iii) by you other than for Good Reason. If any of the
events described in Section 2 constituting a Change in Control shall
have occurred, you shall be entitled to the benefits provided in
Section 5 upon the subsequent termination of your employment during
the term of this Agreement unless such termination is (x) because of
your death or Disability, (y) by the Company for Cause, or (z) by
you other than for Good Reason. In the event your
employment with the Company is terminated for any reason and
subsequently a Change in Control of UST shall have occurred, you
shall not be entitled to the benefits provided in Section 5.
	 
	(b)	 	Disability. If, as a result of your incapacity due to
physical or mental illness, you shall have been absent from the
full-time performance of your duties with the Company for six (6)
consecutive months, and within thirty (30) days after written notice
of termination is given you shall not have returned to the full-time
performance of your duties, your employment may be terminated for
“Disability.”
	 
	(c)	 	Cause. The Company may terminate your employment hereunder
for Cause. For purposes of this Agreement, “Cause” shall mean (i)
the willful and continued failure by you to substantially perform
your duties hereunder (other than any such failure resulting from
your incapacity due to physical or mental illness), which failure is
not cured within ten (10) business days after demand for substantial
performance is delivered by the Company that specifically identifies
the manner in which the Company believes you have not substantially
performed your duties; (ii) the willful engaging by you in
misconduct which is materially injurious to the Company, monetarily
or otherwise (including, but not limited to, your violation of the
Company’s Code of Corporate Responsibility); or (iii) the commission
of an act or omission that constitutes a material breach of this
Agreement (including, but not limited to, the violation of your
obligations under Sections 6, 7 or 8 hereof); provided, however,
that upon the occurrence of any of the events constituting a Change
in Control (as defined in Section 2 hereof), the foregoing
definition of Cause shall cease

3

 

	 	 	to apply, and the Company shall have
“Cause” to terminate your employment hereunder only if you commit an
act or acts of dishonesty constituting a felony under the laws of
the United States, any State thereof or any applicable foreign
country and resulting in or intended to result directly or
indirectly in gain or personal enrichment at the expense of the
Company. For purposes of this subsection, no act, or failure to
act, on your part shall be considered “willful” unless done, or
omitted to be done, by you not in good faith and without reasonable
belief that your action or omission was in the best interest of the
Company. Notwithstanding the foregoing, if your employment is
terminated on or following a Change in Control, you shall not be
deemed to have been terminated for Cause unless and until there
shall have been delivered to you a copy of a resolution duly adopted
by the affirmative vote of not less than three-quarters (3/4) of the
entire membership of the Board at a meeting of the Board called and
held for such purpose (after reasonable notice to you and an
opportunity for you, together with your counsel, to be heard before
the Board), finding that in the good faith opinion of the Board you
were guilty of conduct set forth above and specifying the
particulars thereof in detail.
	 
	(d)	 	Good Reason. You shall be entitled to terminate your
employment for Good Reason. For purposes of this Agreement, “Good
Reason” shall mean, without your express written consent, (1) the
occurrence prior to a Change in Control of any of the circumstances
set forth in paragraphs (i) through (v) below and (2) the occurrence
on or following a Change in Control of any of the circumstances set
forth in paragraphs (A) through (H) below, unless, in any case, such
circumstances are fully corrected prior to the Date of Termination
specified in Notice of Termination, as defined in Sections 3(f) and
3(g), respectively, given in respect thereof.
	 
	 	 	Good Reason Prior to a Change in Control.

	(i)	 	The assignment to you of any duties
inconsistent with the position in the Company that you held
immediately prior to such assignment, or a significant
adverse alteration in the nature or status of your
responsibilities, including your reporting responsibilities,
from those in effect immediately prior to such alteration;
	 
	(ii)	 	A reduction by the Company in your annual base
salary as in effect on the date hereof or as the same may be
increased from time to time;
	 
	(iii)	 	The relocation (except for required travel on
the Company’s business to an extent substantially consistent
with your present business travel obligations) of your
principal place of employment to a location more than fifty
(50) miles from the Company’s principal executive offices in
the Greenwich, Connecticut

4

 

	 	 	metropolitan area or the
metropolitan area to which the Company’s principal executive
offices are relocated, it being understood that a relocation
of the Company’s principal executive offices that applies to
all or substantially all personnel and not to you alone shall
not constitute Good Reason hereunder;
	 
	(iv)	 	The failure by the Company to continue to
provide you with benefits substantially similar to those
enjoyed by you under the Company’s compensation and employee
benefit plans in which you participate as of the date hereof,
or the taking of any action by the Company which would
directly or indirectly materially reduce any of such benefits
(except with respect to bonus and equity awards made under
the Incentive Compensation Plan, the Amended and Restated
Stock Incentive Plan and any successor plans which are and
shall continue to be in the discretion of Compensation
Committee of the Board, but which shall be determined on the
same basis as other similarly situated executives of the
Company); provided, however, that in no event shall any
across-the-board or generally applicable change to the
compensation and employee
benefit plans provided by the Company affecting all
similarly situated executives of the Company constitute
Good Reason hereunder; or
	 
	(v)	 	Any purported termination of your employment
which is not effected pursuant to a Notice of Termination
satisfying the requirements of Subsection (f) hereof (and, if
applicable, the requirements of Subsection (c) hereof); for
purposes of this Agreement, no such purported termination
shall be effective. Your right to terminate your employment
pursuant to this Subsection (d) shall not be affected by your
incapacity due to physical or mental illness. Your continued
employment shall not constitute consent to, or a waiver of
rights with respect to, any circumstance constituting Good
Reason hereunder.

	 	 	Good Reason on or Following a Change in Control.

	(A)	 	The assignment to you of any duties
inconsistent with the position in the Company that you held
immediately prior to the Change in Control, or a significant
adverse alteration in the nature or status of your
responsibilities, including your reporting responsibilities,
from those in effect immediately prior to such change;
provided, however, that no such alteration in your reporting
responsibilities alone shall be considered Good Reason
hereunder prior to the date which is six (6) months following
the date of the Change in Control;

5

 

	(B)	 	A reduction by the Company in your annual base
salary as in effect on the date hereof or as the same may be
increased from time to time;
	 
	(C)	 	The relocation of your principal place of
employment to a location more than fifty (50) miles from the
Greenwich, Connecticut metropolitan area (or, if different,
the metropolitan area in which the Company’s principal
executive offices are located immediately prior to the Change
in Control) except for required travel on the Company’s
business to an extent substantially consistent with your
present business travel obligations;
	 
	(D)	 	The failure by the Company to pay to you any
portion of your current compensation except pursuant to an
across-the-board compensation deferral similarly affecting
all officers of the Company and all officers of any person
whose actions resulted in a Change in Control or any person
affiliated with the Company or such person, or to pay to you
any portion of an installment of deferred compensation under
any deferred compensation program
of the Company, within seven (7) days of the date such
compensation is due;
	 
	(E)	 	The failure by the Company to continue in
effect any compensation plan in which you participate
immediately prior to the Change in Control which is material
to your total compensation, including but not limited to the
UST Retirement Income Plan for Salaried Employees, Employees’
Savings Plan, Officers’ Supplemental Retirement Plan,
Incentive Compensation Plan and the Amended and Restated
Stock Incentive Plan, or any substitute plans adopted prior
to the Change in Control, unless an equitable arrangement
(embodied in an ongoing substitute or alternative plan) has
been made with respect to such plan, or the failure by the
Company to continue your participation therein (or in
substitute or alternative plan) on a basis not materially
less favorable, both in terms of the amount of benefits
provided and the level of your participation relative to
other participants, as existed at the time of the Change in
Control;
	 
	(F)	 	The failure by the Company to continue to
provide you with benefits substantially similar to those
enjoyed by you under any of the Company’s life insurance,
medical, health and accident, or disability plans in which
you were participating at the time of the Change in Control,
the taking of any action by the Company which would directly
or indirectly materially reduce any of such benefits or
deprive you of any material fringe benefit enjoyed by you at
the time of the Change in Control, or the failure by the
Company to provide you with the number of paid vacation days
to which you

6

 

	 	 	are entitled on the basis of years of service
with the Company in accordance with the Company’s normal
vacation policy in effect at the time of the Change in
Control;
	 
	(G)	 	The failure of the Company to obtain a
satisfactory agreement from any successor to assume and agree
to perform this Agreement, as contemplated in Section 9
hereof; or
	 
	(H)	 	Any purported termination of your employment
which is not effected pursuant to a Notice of Termination
satisfying the requirements of Subsection (f) hereof (and, if
applicable, the requirements of Subsection (c) hereof); for
purposes of this Agreement, no such purported termination
shall be effective. Your right to terminate your employment
pursuant to this Subsection (d) shall not be affected by your
incapacity due to physical or mental illness. Your continued
employment shall not constitute consent to, or a waiver of
rights with respect to, any circumstance constituting Good
Reason hereunder.

	(e)	 	Employment by Affiliates. For purposes of this Agreement, in
no event shall a termination of your employment with the Company be
deemed to occur as a result of your transfer to, or employment by,
UST or any of its affiliates during the term of this Agreement.
	 
	(f)	 	Notice of Termination. Any purported termination of your
employment by the Company or by you shall be communicated by written
“Notice of Termination” to the other party hereto in accordance with
this Section 3(f). “Notice of Termination” shall mean a notice
which shall indicate the specific termination provision in this
Agreement relied upon; shall set forth in reasonable detail the
facts and circumstances claimed to provide a basis for termination
of your employment under the provision so indicated; and shall be
provided within sixty (60) days of the occurrence of the event
giving rise to the Notice of Termination or, in the case of a Notice
of Termination for Cause by the Company, the date that the Company
reasonably could have known of the occurrence of such event.
	 
	(g)	 	Date of Termination, Etc. “Date of Termination” shall mean
(a) if your employment is terminated for Disability, thirty (30)
days after Notice of Termination is given (provided that you shall
not have returned to the full-time performance of your duties during
such thirty (30) day period), and (b) if your employment is
terminated pursuant to Subsection (c) or (d) hereof or for any other
reason (other than Disability), the date specified in the Notice of
Termination (which, in the case of a termination pursuant to
Subsection (c) hereof shall not be less than thirty (30) days,
unless a shorter time is provided by the Company prior to the
occurrence of a Change of Control, and in the case of a termination
pursuant to Subsection (d) hereof shall not be less than fifteen
(15) nor more than sixty (60) days,

7

 

	 	 	respectively, from the date such
Notice of Termination is given). Notwithstanding the foregoing,
following the occurrence of a Change in Control, if, within fifteen
(15) days after any Notice of Termination is given, or, if later,
prior to the Date of Termination (as determined without regard to
this provision), the party receiving such Notice of Termination
notifies the other party that a dispute exists concerning the
termination, then the Date of Termination shall be the date on which
the dispute is finally determined, either by mutual written
agreement of the parties, by a binding arbitration award, or by a
final judgment, order or decree of a court of competent jurisdiction
(which is not appealable or with respect to which the time for
appeal therefrom has expired and no appeal has been perfected); and
provided, further, that the Date of Termination shall be extended by
a notice of dispute only if such notice is given in good faith and
the party giving such notice pursues the resolution of such dispute
with reasonable diligence. Pending the resolution of any such
dispute following the occurrence of a Change in Control, the Company
will continue to pay you your full compensation in effect when the
notice giving rise to the dispute was given (including, but not
limited to, base salary) and continue to include you as a
participant in all compensation,
benefit and insurance plans in which you were participating when
the notice giving rise to the dispute was given, until the dispute
is finally resolved in accordance with this Subsection. Amounts
paid during the pendency of a dispute under this Subsection are in
addition to all other amounts due under this Agreement, and shall
not be offset against or reduce any other amounts due under this
Agreement and shall not be reduced by any compensation earned by
you as the result of employment by another employer.
	 
	(h)	 	Release/Resignations. In consideration of the benefits
provided under Section 4(b) and Section 5 of this Agreement, you
agree and covenant (i) to execute at the time of your termination of
employment a general release, in the form attached hereto as Annex I
(the “Release”), of any and all claims you may have or may believe
you have against the Company and UST and/or its officers, directors,
employees, agents and representatives; (ii) not to seek any recovery
against the Company or UST or its officers, directors, employees,
agents or representatives for any cause or reason related to or
arising from your employment with the Company or the termination
thereof, other than a failure or refusal of the Company to pay you
(x) the benefits described in Section 4(b) of Section 5 hereof, and
(y) the benefits to which you are entitled subsequent to your
termination of employment pursuant to the terms of one or more of
the Company’s employee benefit plans; and (iii) to cooperate fully
with UST and its affiliates concerning reasonable requests for
information about the business of UST or any of its affiliates or
your involvement and participation therein, including, but not
limited to, with respect to the defense or prosecution of any claims
or actions in existence now or in the future. The covenant set
forth in clause (ii) of this Section 3(h) includes,

8

 

	 	 	without
limitation, seeking any recovery against the Company or UST or its
officers, directors, employees, agents or representatives in any
forum, including without limitation any court, administrative agency
or otherwise. In the event of your termination of employment under
any of the circumstances described in Section 3, you further agree
to resign all offices or directorships that you may hold with the
Company or UST, as the case may be, in a form acceptable to the
Company and UST.

	4.	 	Severance Compensation Prior to a Change in Control. Prior to a Change in
Control, you shall be entitled to the following benefits, provided that such
termination occurs during the term of this Agreement:

	(a)	 	If your employment shall be terminated by the Company for
Cause or by you other than for Good Reason, or because of your death
or Disability, the Company shall pay you your full base salary
through the Date of Termination at the rate in effect at the time
Notice of Termination is given, and provide you with all other
normal post-termination amounts (if any) to which you are entitled
under the terms and conditions of any compensation or benefit plan
of the Company at the time such payments
are due, and the Company shall have no further obligations to you
under this Agreement.
	 
	(b)	 	If your employment by the Company shall be terminated by you
for Good Reason, or by the Company other than for Cause, Disability
or death, then you shall be entitled to the benefits provided below,
subject to your execution of a release described in Section 3(h) and
provided that such release becomes effective and has not been
revoked in accordance with the terms thereof:

	(i)	 	the Company shall pay to you your full base
salary through the Date of Termination at the rate in effect
at the time Notice of Termination is given, no later than the
fifth day following the Date of Termination; and shall
provide you with all other normal post-termination amounts
(if any) to which you are entitled under the terms and
conditions of any compensation or benefit plan of the
Company, at the time such payments are due;
	 
	(ii)	 	to the extent than an annual bonus has not been
paid to you in respect of the fiscal year in which the Date
of Termination occurs, the Company shall pay to you, at the
time that annual bonuses in respect of such fiscal year are
regularly paid by the Company, the product of (x) the actual
annual bonus that you would have been entitled to under the
Company’s Incentive Compensation Plan had you remained
employed through the regular payment date and (y) a fraction,
the numerator of which is the number of days that have
elapsed in the fiscal year in which the Date of Termination
occurs

9

 

	 	 	through the Date of Termination, and the denominator
of which is 365.
	 
	(iii)	 	in lieu of any further salary and bonus
payments to you for periods subsequent to the Date of
Termination, the Company shall pay to you, in 24 equal
monthly installments, a severance payment equal to the
product of (1) the sum of (A) your annual salary rate in
effect immediately prior to the Date of Termination, and (B)
the highest annual amount paid to you under the Company’s
Incentive Compensation Plan with respect to any of the two
(2) calendar years immediately preceding the Date of
Termination, and (2) the number two (2); and
	 
	(iv)	 	for a twenty-four (24) month period following
the Date of Termination, the Company shall arrange to provide
you with life, disability, accident and group health
insurance benefits substantially similar to those which you
were receiving immediately prior to the Notice of
Termination. Benefits otherwise receivable by you pursuant
to this paragraph (iv) shall be reduced to the extent
comparable benefits are actually received by
you during the twenty-four (24) month period following your
termination, and any such benefits actually received by you
shall be reported to the Company.

	5.	 	Severance Compensation On or Following a Change in Control. On or
following a Change in Control, you shall be entitled to the following benefits
during a period of disability, or upon termination of your employment, as the
case may be, provided that such period or termination occurs during the term of
this Agreement:

	(a)	 	During any period that you fail to perform your full-time
duties with the Company as a result of incapacity due to physical or
mental illness, you shall continue to receive your base salary at
the rate in effect at the commencement of any such period, together
with all compensation payable to you under the Long-Term Disability
Plan for Salaried Employees or other plan during such period, until
this Agreement is terminated pursuant to Section 3(b) hereof.
Thereafter your benefits shall be determined under the Company’s
retirement, insurance and other compensation programs then in effect
in accordance with the terms of such programs.
	 
	(b)	 	If your employment shall be terminated by the Company for
Cause or by you other than for Good Reason, the Company shall pay
you your full base salary through the Date of Termination at the
rate in effect at the time Notice of Termination is given, and
provide you with all other normal post-termination amounts (if any)
to which you are entitled under the terms and conditions of any
compensation or benefit plan of the Company

10

 

	 	 	at the time such
payments are due, and the Company shall have no further obligations
to you under this Agreement.
	 
	(c)	 	If your employment by the Company shall be terminated by you
for Good Reason or by the Company other than for Cause, Disability
or death, then, you shall be entitled to the benefits provided
below, subject to your execution of a release described in Section
3(h) and provided that such release becomes effective and has not
been revoked in accordance with the terms thereof:

	(i)	 	the Company shall pay to you your full base
salary through the Date of Termination at the rate in effect
at the time Notice of Termination is given, no later than the
fifth day following the Date of Termination; and provide you
with all other normal post-termination amounts (if any) to
which you are entitled under the terms and conditions of any
compensation or benefit plan of the Company at the time such
payments are due;
	 
	(ii)	 	in lieu of any further salary and bonus
payments to you for periods subsequent to the Date of
Termination, the Company shall pay as severance pay to you,
no later than the fifth day following
the Date of Termination, a lump-sum payment equal to the
product of (1) the sum of (A) your annual salary rate in
effect as of the Date of Termination or, if greater, such
rate in effect immediately prior to the Change in Control,
and (B) the highest annual amount paid to you under the
Company’s Incentive Compensation Plan with respect to any
of the three (3) calendar years immediately preceding the
Date of Termination; provided, however, that the amount
taken into account under this clause (B) shall in no event
exceed seventy-five percent (75%) of the amount taken into
account under clause (A) hereof, and (2) the number three
(3);
	 
	(iii)	 	the Company also shall pay to you all legal
fees and expenses incurred by you as a result of such
termination (including all such fees and expenses, if any,
incurred in contesting or disputing any such termination or
in seeking to obtain or enforce any right or benefit provided
by this Agreement or in connection with any tax audit or
proceeding to the extent attributable to the application of
section 4999 of the Internal Revenue Code of 1986, as
amended, (the “Code”) to any payment or benefits provided
hereunder); and
	 
	(iv)	 	for a thirty-six (36) month period after such
termination, the Company shall arrange to provided you with
life, disability, accident and group health insurance
benefits substantially similar to those which you were
receiving immediately prior to the Notice of Termination.
Benefits otherwise receivable by you pursuant to this
paragraph (iv) shall be reduced to the extent comparable

11

 

	 	 	benefits are actually received by you during the thirty-six
(36) month period following your termination, and any such
benefits actually received by your shall be reported to the
Company.

	(d)	 	If any of the Total Payments (as defined below) will be
subject to the tax (the “Excise Tax”) imposed by section 4999 of the
Code, the Company shall pay to you, no later than the fifth day
following the Date of Termination (or such other date as is
hereinafter described), an additional amount (the “Gross-Up
Payment”) such that the net amount retained by you, after deduction
of any Excise Tax on the Total Payments and any federal, state and
local income and employment taxes and Excise Tax upon the Gross-Up
Payment, shall be equal to the Total Payments. Notwithstanding the
foregoing provisions of this Section 5(d), if it shall be determined
that you are entitled to the Gross-Up Payment, but that the
Parachute Value (as defined below) of the Total Payments does not
equal or exceed 110% of the Safe Harbor Amount (as defined below),
then no Gross-Up Payment shall be made to you and the amounts
payable to you under this Agreement shall be reduced to the extent
necessary to cause the Parachute Value of the Total Payments, in the
aggregate, to be equal to the Safe Harbor Amount.
	 
	(e)	 	For purposes of determining whether any of the Total Payments
will be subject to the Excise Tax and the amount of such Excise Tax,
(i) all payments or benefits received or to be received by you in
connection with a Change in Control or the termination of your
employment (whether payable pursuant to the terms of this Agreement
or of any other plan, arrangement or agreement with the Company, its
successors, any person whose actions result in a Change in Control
or any person affiliated (or which, as a result of the completion of
the transactions causing a Change in Control, will become
affiliated) with the Company or such person within the meaning of
section 1504 of the Code (such payments or benefits, excluding the
Gross-Up Payments, being hereinafter referred to as the “Total
Payments”)) shall be treated as “parachute payments” (within the
meaning of section 280G(b)(2) of the Code) unless, in the opinion of
tax counsel selected by the independent auditors of the Company (as
of the date immediately prior to the Change in Control) and
reasonably acceptable to you, such payments or benefits (in whole or
in part) do not constitute parachute payments, including by reason
of section 280G(b)(4)(A) of the Code; (ii) all “excess parachute
payments” (within the meaning of section 280G(b)(1) of the Code)
shall be treated as subject to the Excise Tax, unless in the opinion
of such tax counsel such excess parachute payments represent
reasonable compensation for services actually rendered (within the
meaning of section 280G(b)(4)(B) of the Code) in excess of the “base
amount” (within the meaning of section 280G(b)(3) of the Code), or
are not otherwise subject to the Excise Tax; and (iii) the value of
any noncash benefits or any deferred payment or benefit shall be
determined by the Company’s independent auditors in

12

 

	 	 	accordance with
the principles of sections 280G(d)(3) and (4) of the Code and the
regulations promulgated thereunder. For purposes of determining the
amount of the Gross-Up Payment, you shall be deemed to pay federal
income taxes at the highest marginal rate of federal income taxation
in the calendar year in which the Gross-Up Payment is to be made and
state and local income and employment taxes at the highest marginal
rate of taxation in your state and locality of residence on the Date
of Termination (or such other date as is hereinafter described), net
of the maximum reduction in federal income taxes that could be
obtained from deduction of such state and local taxes. For purposes
of this Agreement, (x) the term “Parachute Value” when applied to
any payment shall mean the present value as of the date of the
Change in Control of the portion of such payment that is treated as
a “parachute payment” under section 280G(b)(2) of the Code, as
determined by tax counsel for purposes of determining whether and to
what extent the Excise Tax will apply to you and (y) the term “Safe
harbor Amount” shall mean 2.99 times your “base amount”, within the
meaning of section 280G(b)(3) of the Code.
	 
	(f)	 	In the event that the Excise Tax is subsequently determined
to be less than the amount taken into account hereunder at the Date
of Termination (or such other date as is hereinafter described), you
shall repay to the
Company at the time that the amount of such reduction in Excise
Tax is finally determined the portion of the Gross-Up Payment
attributable to such reduction (plus the portion of the Gross-Up
Payment attributable to the Excise Tax and federal, state and
local income and employment taxes imposed on the Gross-Up Payment
being repaid by you if such repayment results in a reduction in
Excise Tax or a federal, state and local income and employment
taxes deduction) plus interest on the amount of such repayment at
120% of the applicable federal rate (as defined in section 1274(d)
of the Code). In the event that the Excise Tax is determined to
exceed the amount taken into account hereunder at the time of the
termination of your employment, or at such other time as is
hereinafter described (including by reason of any payment the
existence or amount of which cannot be determined at the time of
the Gross-Up Payment), the Company shall make an additional
gross-up payment in respect of such excess (plus any interest
payable with respect to such excess) within five (5) business days
following the time that the amount of such excess is finally
determined.
	 
	(g)	 	Except as provided in Section 5(c)(iv) or Section 5(d)
hereof, you shall not be required to mitigate the amount of any
payment provided for in this Section 5 by seeking other employment
or otherwise, nor shall the amount of any payment or benefit
provided for in this Section 5 be reduced by any compensation earned
by you as the result of employment by another employer, by
retirement benefits, by offset against any amount claimed to be owed
by you to the Company, or otherwise.

13

 

	6.	 	Noncompetition. You agree that you will not engage in any Competitive
Activity during the one-year period following your termination of employment
with the Company for any reason (or, where you receive payments pursuant to
Section 4(b) hereof, then during the two-year period following your termination
of employment with the Company); provided, however, that this provision shall
cease to apply upon the occurrence of any of the events constituting a Change
in Control. For purposes of this Section, “Competitive Activity” shall mean
activity, without the written consent of an authorized officer of the Company
and UST, consisting of your participation in the management of, or acting as a
consultant for or employee of, any business operation of any enterprise if such
operation (a “Competitive Operation”) is then in substantial and direct
competition with the smokeless tobacco business operation of UST, anyplace in
the world, as now or hereafter designated by the Board; provided, however, that
no business operation may be designated as a business operation that is in
substantial competition with UST unless the profits, sales or assets
attributable to such business operation amount to at least 10 percent (10%) of
said business’ total profits, sales or assets. Competitive Activity shall not
include (1) the mere ownership of up to five percent (5%) of the outstanding
securities in any enterprise; or (2) the participation in the management of, or
acting as a consultant for or employee of, any enterprise or any business
operation thereof, other than in connection with a Competitive Operation of
such enterprise, provided that you do not furnish advice with respect to
inventions, processes, customers, methods of distribution, methods of
manufacture, marketing or business strategy relating
to any Competitive Operation of such enterprise, or the formation of a
Competitive Operation.
	 
	7.	 	Confidentiality. You agree not to disclose, either while employed by the
Company or at any time thereafter, to any person not employed by the Company,
or not engaged to render services to the Company, except with the prior written
consent of an officer authorized to act in the matter by the Board, any
confidential information of the Company, its subsidiaries and affiliates
obtained by you while in the employ of the Company, including, without
limitation, information relating to any of the Company’s or its affiliates’
inventions, processes, formulae, plans, devices, compilations of information,
methods of distribution, customers, client relationships, marketing strategies
or trade secrets; provided, however, that this provision shall not preclude you
from the use or disclosure of information known generally to the public or of
information not considered confidential by persons engaged in the business
conducted by the Company or from disclosure required by law or court order.
The agreement herein made in this Section 7 shall be in addition to, and not in
limitation or derogation of, any obligations otherwise imposed by law upon you
in respect of confidential information and trade secrets of the Company, its
subsidiaries and affiliates.
	 
	8.	 	Non-Solicitation. You agree that you shall not solicit any person who is a
customer of the businesses conducted by the Company and its subsidiaries and
affiliates, or any business in which you have been engaged on behalf of the
Company and its subsidiaries or affiliates at any time during the Term of this
Agreement on behalf of an employer affiliated with you or any business
described

14

 

	 	 	in Section 6; or induce or attempt to persuade any employee of the
Company or any of its subsidiaries or affiliates to terminate his employment
relationship in order to enter into employment with an employer affiliated with
you or any business described in Section 6.
	 
	9.	 	Successors: Binding Agreement.

	(a)	 	The Company shall require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to
expressly assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to
perform it if no such succession had taken place. Failure of the
Company to obtain such assumption and agreement prior to the
effectiveness of any such succession shall be a breach of this
Agreement and shall entitle you to compensation from the Company in
the same amount and on the same terms to which you would be entitled
hereunder if you terminate your employment for Good Reason following
a Change in Control, except that for purposes of implementing the
foregoing, the date on which any such succession becomes effective
shall be deemed the Date of Termination. As used in this Agreement,
“Company” shall mean the Company as hereinbefore defined and any
successor to its business and/or assets as aforesaid which assumes
and agrees to perform this Agreement by operation of law, or
otherwise.
	 
	(b)	 	This Agreement shall inure to the benefit of and be
enforceable by your personal or legal representative, executors,
administrators, successors, heirs, distributees, devisees and
legatees. If you should die while any amount would still be payable
to you hereunder if you had continued to live, all such payments,
unless otherwise provided herein, shall be paid in accordance with
the terms of this Agreement to your devisee, legatee or other
designee or, if there is no such designee, to your estate.

	10.	 	Notice. For the purpose of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
certified or registered mail, return receipt requested, postage prepaid,
addressed to the respective addresses set forth on the first page of this
Agreement, provided that all notice to the Company shall be directed to the
attention of the Board with a copy to the Secretary of the Company, or to such
other address as either party may have furnished to the other in writing in
accordance herewith, except that notice of change of address shall be effective
only upon receipt.
	 
	11.	 	Miscellaneous. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in
writing and signed by you and such officer as may be specifically designated by
the Board. No waiver by either party hereto as any time of any breach by the
other party hereto of, or compliance with, any condition or provision of this
Agreement

15

 

	 	 	to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. No agreements or representations, oral or otherwise, express
or implied, with respect to the subject matter hereof have been made by either
party which are not expressly set forth in this Agreement. The validity,
interpretation, construction and performance of this Agreement shall be
governed by the laws of the State of Delaware without regard to its conflicts
of law principles. All references to sections of the Exchange Act or the Code
shall be deemed also to refer to any successor provisions to such sections.
Any payments provided for hereunder shall be paid net of any applicable
withholding required under federal, state or local law. The obligations of the
Company under Sections 4 and 5 and your obligations under Sections 6, 7 and 8
shall survive the expiration of the term of this Agreement.
	 
	12.	 	Validity. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.
	 
	13.	 	Counterparts. This Agreement may be executed in several counterparts, each
of which shall be deemed to be an original but all of which together will
constitute one and the same instrument.
	 
	14.	 	Arbitration. Any dispute or controversy arising under or in connection
with this Agreement shall be settled exclusively by arbitration, conducted
before a panel of three arbitrators in New York, New York, in accordance with
the rules of the American Arbitration Association then in effect. Judgment may
be entered on the arbitrator’s award in any court having jurisdiction;
provided, however, that you shall be entitled to seek
specific performance of your right to be paid until the Date of Termination
during the pendency of any dispute or controversy arising under or in
connection with the Agreement.
	 
	15.	 	Entire Agreement. This Agreement sets forth the entire agreement of the
parties hereto in respect of the subject matter contained herein and supersedes
all prior agreements, promises, covenants, arrangements, communications,
representations or warranties, whether oral or written, by any officer,
employee or representative of any party hereto; including, without limitation,
the letter agreement between you, the Company and UST, dated January 3, 2000,
concerning change in control severance; and any prior agreement of the parties
hereto in respect of the subject matter contained herein is hereby terminated
and cancelled.

            If this letter sets forth our agreement on the subject matter hereof,
kindly

16

 

sign and return to the Company the enclosed copy of this letter, which will
then constitute our agreement on this subject.

	 	 	 	 	 	 	 	 	 	 	 
	U.S. Smokeless Tobacco Company	 	UST Inc.
	 
	 	 	 	 	 	 	 	 	 	 
	By	 	/s/RICHARD H. VERHEIJ	 	By	 	/s/VINCENT A. GIERER, JR.
	 	 	
	 	 	 	

	

	 	Title:
	 	Executive Vice President
	 	 	 	Title:
	 	Chairman of the Board
	

	 	 	 	and General Counsel
	 	 	 	 	 	and Chief Executive
	

	 	 	 	 	 	 	 	 	 	Officer

Agreed to this 13th day of

September, 2004

	 	 	 
	/s/ MURRAY S. KESSLER

	

	      Murray S. Kessler

17

 

RELEASE AGREEMENT

     THIS RELEASE, entered into this [    ] day of [       ] by Murray
S. Kessler, residing at

[           ] (hereinafter referred to as the “Employee”).

W I T N E S S E T H:

     WHEREAS, the Employee, U.S. Smokeless Tobacco Company, a Delaware
corporation (“USSTC”), and UST Inc., a Delaware corporation (“UST”), each
having its principal offices in Greenwich, Connecticut, entered into a letter
agreement (the “Agreement”) dated as of August   , 2004, pursuant to Section
3(h) of which the Employee agreed and covenanted, to execute a general release
of any and all claims he may have or may believe he has against UST, its
affiliates and/or their respective officers, directors, employees, agents and
representatives; and

     WHEREAS, the employment of the Employee was terminated as of [       ];

     NOW, THEREFORE, in consideration of the benefits to be provided to the
Employee pursuant to the Agreement, it is agreed as follows:

1. The Employee voluntarily, knowingly and willingly releases and forever
discharges UST, its parents, subsidiaries and affiliates, together with
their respective officers, directors, partners, shareholders, employees
and agents, and each of their predecessors, successors and assigns, from
any and all charges, complaints, claims, promises, agreements,
controversies, causes of action and demands of any nature whatsoever
which against them the Employee or his executors, administrators,
successors or assigns ever had, now have or hereafter can, shall or may
have by reason of any matter, cause or thing whatsoever arising prior to
the time the Employee signs this agreement.

2. The release being provided by Employee in this agreement includes, but
is not limited to, any rights or claims relating in any way to the
Employee’s employment relationship with USSTC or UST, or the termination
thereof, or under any statute, including the federal Age Discrimination
in Employment Act, Title VII of the Civil Rights Act, the Americans with
Disabilities Act, or any other federal, state or local law or judicial
decision.

3. By signing this release agreement, the Employee represents that he has
not and will not in the future commence any action or proceeding arising
out of the matters released hereby, and that he will not seek or be
entitled to any award of legal or equitable relief in any action or
proceeding that may be commenced on his behalf.

4. By signing this release agreement, the Employee agrees to cooperate
fully with UST and its affiliates concerning reasonable requests for
information about the business of USSTC or UST or any of their affiliates
or your involvement and participation therein; the defense or prosecution
of any claims or actions now in existence or which may be brought in the
future against or on behalf of USSTC, UST or any of their affiliates
which relate to events or occurrences that transpired

 

 

while you were employed by USSTC and its affiliates; and in connection
with any investigation or review by any federal, state or local
regulatory, quasi-regulatory or self-governing authority (including,
without limitation, the Securities and Exchange Commission) as any such
investigation or review relates to events or occurrences that transpired
while the Employee was so employed. The Employee’s full cooperation
shall include, but not be limited to, being available to meet and speak
with officers or employees of UST or any of its affiliates and/or their
counsel at reasonable times and locations, executing accurate and
truthful documents and taking such other actions as may reasonably be
requested by UST or any of its affiliates and/or their counsel to
effectuate the foregoing. UST agrees to reimburse you for any
reasonable, out-of-pocket travel, hotel and meal expenses incurred in
connection with your performance of obligations pursuant to this
paragraph 5 for which you have obtained prior approval from UST.

5. The Employee acknowledges that UST has hereby advised him to consult
with an attorney of his choosing prior to signing this release agreement.
The Employee represents that he has had the opportunity to review this
agreement and, specifically, the release in paragraph 1, with an attorney
of his choice. The Employee also agrees that he has entered into this
agreement freely and voluntarily.

6. The Employee acknowledges that he has been given at least twenty-one
days to consider the terms of this release agreement. Furthermore, once
he has signed this release agreement, the Employee shall have seven
additional days from the date of signing this release agreement to revoke
his consent hereto. The release agreement will not become effective
until seven days after the date the Employee has signed it, which will be
the effective date of this release agreement.

     IN WITNESS WHEREOF, the Employee has executed this release agreement as of
the date first set forth above.

	 	 	 
	

	 	

	

	 	Murray S. Kessler
	 
	 	 
	

	 	 
	WITNESS
	 	 

19<PAGE>
                                                                    EXHIBIT 10.1

                                                                  Execution Copy

                                REVOLVING CREDIT
                                    AGREEMENT

                          Dated as of October 16, 2003

                                      among

                                  COACH, INC.,

                     THE LENDERS LISTED ON SCHEDULE I HERETO

                                       and

                  FLEET NATIONAL BANK, as Administrative Agent

                                       and

                       HSBC BANK USA, as Syndication Agent

                                      with

                       FLEET SECURITIES, INC., as Arranger

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                            <C>
1.  DEFINITIONS AND RULES OF INTERPRETATION...............................................      1
      1.1.    Definitions.................................................................      1
      1.2.    Rules of Interpretation.....................................................     15

2.  THE REVOLVING CREDIT FACILITY.........................................................     16
      2.1.    Commitment to Lend..........................................................     16
      2.2.    Commitment Fee..............................................................     18
      2.3.    Reduction of Total Commitment...............................................     18
      2.4.    The Revolving Credit Notes..................................................     18
      2.5.    Interest on Revolving Credit Loans..........................................     19
      2.6.    Requests for Revolving Credit Loans.........................................     20
                 2.6.1. General...........................................................     20
                 2.6.2. Swing Line........................................................     20
      2.7.    Conversion Options..........................................................     20
                 2.7.1. Conversion to Different Type of Revolving Credit Loan.............     21
                 2.7.2. Continuation of Type of Revolving Credit Loan.....................     21
                 2.7.3. Eurodollar Rate Loans.............................................     21
                 2.7.4. Applicability of Conversion and Continuation Provisions...........     22
      2.8.    Funds for Revolving Credit Loan.............................................     22
                 2.8.1. Funding Procedures................................................     22
                 2.8.2. Advances by Administrative Agent..................................     22
      2.9.    Settlements.................................................................     23
                 2.9.1. General...........................................................     23
                 2.9.2. Failure to Make Funds Available...................................     23
                 2.9.3. No Effect on Other Lenders........................................     24

3.  REPAYMENT OF THE REVOLVING CREDIT LOANS...............................................     24
      3.1.    Maturity....................................................................     24
      3.2.    Mandatory Repayments of Revolving Credit Loans..............................     24
      3.3.    Optional Repayments of Revolving Credit Loans...............................     25

4.  LETTERS OF CREDIT.....................................................................     25
      4.1.    Letter of Credit Commitments................................................     25
                 4.1.1. Commitment to Issue Letters of Credit.............................     26
                 4.1.2. Letter of Credit Applications.....................................     26
                 4.1.3. Terms of Letters of Credit........................................     26
                 4.1.4. Reimbursement Obligations of Lenders..............................     26
                 4.1.5. Participations of Lenders.........................................     27
      4.2.    Reimbursement Obligation of the Borrower....................................     27
      4.3.    Letter of Credit Payments...................................................     28
</TABLE>

<PAGE>

                                      -ii-

<TABLE>
<S>                                                                                            <C>
      4.4.    Obligations Absolute........................................................     28
      4.5.    Reliance by Issuer..........................................................     29
      4.6.    Letter of Credit Fee........................................................     29

5.  CERTAIN GENERAL PROVISIONS............................................................     30
      5.1.    Closing and Arrangement Fees................................................     30
      5.2.    Administrative Agent's Fee..................................................     30
      5.3.    Funds for Payments..........................................................     30
                 5.3.1. Payments to Administrative Agent..................................     30
                 5.3.2. No Offset, etc....................................................     30
      5.4.    Computations................................................................     31
      5.5.    Inability to Determine Eurodollar Rate......................................     31
      5.6.    Illegality..................................................................     31
      5.7.    Additional Costs, etc.......................................................     32
      5.8.    Capital Adequacy............................................................     33
      5.9.    Certificate.................................................................     34
      5.10.   Indemnity...................................................................     34
      5.11.   Interest After Default......................................................     34
                 5.11.1. Overdue Amounts..................................................     34
                 5.11.2. Amounts Not Overdue..............................................     34

6.  GUARANTIES............................................................................     34
      6.1.    Guaranties of Significant Subsidiaries......................................     34

7.  REPRESENTATIONS AND WARRANTIES........................................................     34
      7.1.    Corporate Authority.........................................................     35
                 7.1.1.  Incorporation; Good Standing.....................................     35
                 7.1.2. Authorization.....................................................     35
                 7.1.3. Enforceability....................................................     35
      7.2.    Governmental Approvals......................................................     35
      7.3.    Title to Properties.........................................................     36
      7.4.    Financial Statements and Projections........................................     36
                 7.4.1. Fiscal Year.......................................................     36
                 7.4.2. Financial Statements..............................................     36
                 7.4.3. Projections.......................................................     36
      7.5.    No Material Adverse Changes, etc............................................     36
      7.6.    Franchises, Patents, Copyrights, etc........................................     37
      7.7.    Litigation..................................................................     37
      7.8.    No Materially Adverse Contracts, etc........................................     37
      7.9.    Tax Status..................................................................     37
      7.10.   No Event of Default.........................................................     37
      7.11.   Holding Company and Investment Company Acts.................................     37
      7.12.   Absence of Financing Statements, etc........................................     38
      7.13.   Certain Transactions........................................................     38
      7.14.   Employee Benefit Plans......................................................     38
                 7.14.1. In General.......................................................     38
                 7.14.2. Terminability of Welfare Plans...................................     38
                 7.14.3. Guaranteed Pension Plans.........................................     38
</TABLE>

<PAGE>

                                      -iii-

<TABLE>
<S>                                                                                            <C>
            7.14.4. Multiemployer Plans...................................................     39
      7.15. Use of Proceeds...............................................................     39
            7.15.1. General...............................................................     39
            7.15.2. Regulations U and X...................................................     39
            7.15.3. Ineligible Securities.................................................     39
      7.16. Environmental Compliance......................................................     39
      7.17. Subsidiaries, etc.............................................................     41
      7.18. Disclosure....................................................................     41
      7.19. Foreign Assets Control Regulations, Etc.......................................     41

8.  AFFIRMATIVE COVENANTS.................................................................     41
      8.1.  Punctual Payment..............................................................     41
      8.2.  Records and Accounts..........................................................     42
      8.3.  Financial Statements, Certificates and Information............................     42
      8.4.  Notices.......................................................................     43
                 8.4.1. Defaults..........................................................     43
                 8.4.2. Environmental Events..............................................     43
                 8.4.3. Notice of Litigation and Judgments................................     43
                 8.4.4. ERISA Events......................................................     44
                 8.4.5. Notice of Change of Fiscal Year End...............................     44
      8.5.  Legal Existence; Maintenance of Properties....................................     44
      8.6.  Insurance.....................................................................     44
      8.7.  Taxes.........................................................................     44
      8.8.  Inspection of Properties and Books, etc.......................................     45
                 8.8.1. General...........................................................     45
                 8.8.2. Communications with Accountants...................................     45
      8.9.  Compliance with Laws..........................................................     45
      8.10. Use of Proceeds...............................................................     45
      8.11. Subsidiaries..................................................................     45
                 8.11.1. Additional Subsidiaries..........................................     45
                 8.11.2. New Guarantors...................................................     46
      8.12. Further Assurances............................................................     46

9.  CERTAIN NEGATIVE COVENANTS............................................................     46
      9.1.  Restrictions on Indebtedness..................................................     46
      9.2.  Restrictions on Liens.........................................................     47
      9.3.  Restrictions on Investments...................................................     49
      9.4.  Restricted Payments...........................................................     50
      9.5.  Merger, Consolidation and Disposition of Assets...............................     50
                 9.5.1. Mergers and Acquisitions..........................................     50
                 9.5.2. Disposition of Assets.............................................     51
       9.6. Sale and Leaseback............................................................     51
       9.7. Compliance with Environmental Laws............................................     52
       9.8. Employee Benefit Plans........................................................     52
       9.9. Business Activities...........................................................     52
       9.10.Transactions with Affiliates..................................................     53

10. FINANCIAL COVENANTS...................................................................     53
</TABLE>

<PAGE>

                                      -iv-

<TABLE>
<S>                                                                                            <C>
      10.1.  Fixed Charge Ratio...........................................................     53
      10.2.  Leverage Ratio...............................................................     53

11. CLOSING CONDITIONS....................................................................     53
      11.1.  Loan Documents...............................................................     53
      11.2.  Certified Copies of Governing Documents......................................     53
      11.3.  Corporate or Other Action....................................................     53
      11.4.  Incumbency Certificate.......................................................     53
      11.5.  Certificates of Location and UCC Search Results..............................     54
      11.6.  Certificates of Insurance....................................................     54
      11.7.  Opinion of Counsel...........................................................     54
      11.8.  Payment of Fees..............................................................     54
      11.9.  Termination of Existing Credit Facility......................................     54
      11.10. Closing Certificate..........................................................     54
      11.11. Pro Forma Compliance Certificate.............................................     54

12. CONDITIONS TO ALL BORROWINGS..........................................................     55
      12.1.  Representations True; No Event of Default....................................     55
      12.2.  No Legal Impediment..........................................................     55
      12.3.  Proceedings and Documents....................................................     55

13. EVENTS OF DEFAULT; ACCELERATION; ETC..................................................     55
      13.1.  Events of Default and Acceleration...........................................     55
      13.2.  Termination of Commitments...................................................     58
      13.3.  Remedies.....................................................................     58

14. THE AGENT.............................................................................     59
      14.1.  Authorization................................................................     59
      14.2.  Employees and Administrative Agents..........................................     59
      14.3.  No Liability.................................................................     60
      14.4.  No Representations...........................................................     60
             14.4.1. General..............................................................     60
             14.4.2. Closing Documentation, etc...........................................     60
      14.5.  Payments.....................................................................     61
             14.5.1. Payments to Administrative Agent.....................................     61
             14.5.2. Distribution by Administrative Agent.................................     61
             14.5.3. Delinquent Lenders...................................................     61
      14.6.  Holders of Notes.............................................................     62
      14.7.  Indemnity....................................................................     62
      14.8.  Administrative Agent as Lender...............................................     62
      14.9.  Resignation..................................................................     62
      14.10. Notification of Defaults and Events of Default...............................     63

15. ASSIGNMENT AND PARTICIPATION..........................................................     63
      15.1.  Conditions to Assignment by Lenders..........................................     63
      15.2.  Certain Representations and Warranties; Limitations;
      Covenants...........................................................................     63
      15.3.  Register.....................................................................     64
</TABLE>

<PAGE>

                                       -v-

<TABLE>
<S>                                                                                            <C>
      15.4.  New Notes....................................................................     64
      15.5.  Participations...............................................................     64
      15.6.  Assignee or Participant Affiliated with the Borrower.........................     64
      15.7.  Miscellaneous Assignment Provisions..........................................     65
      15.8.  Assignment by Borrower.......................................................     65

16. PROVISIONS OF GENERAL APPLICATION.....................................................     65
      16.1.  Setoff.......................................................................     66
      16.2.  Expenses.....................................................................     66
      16.3.  Indemnification..............................................................     67
      16.4.  Treatment of Certain Confidential Information................................     67
             16.4.1. Confidentiality......................................................     67
             16.4.2. Prior Notification...................................................     68
             16.4.3. Other................................................................     69
      16.5.  Survival of Covenants, Etc...................................................     69
      16.6.  Notices......................................................................     69
      16.7.  Governing Law................................................................     70
      16.8.  Headings.....................................................................     70
      16.9.  Counterparts.................................................................     70
      16.10. Entire Agreement, Etc........................................................     71
      16.11. WAIVER OF JURY TRIAL.........................................................     71
      16.12. Consents, Amendments, Waivers, Etc...........................................     71
      16.13. Severability.................................................................     73
</TABLE>

<PAGE>

                                      -vi-

<TABLE>
<CAPTION>
                                Exhibits
                                --------
<S>                  <C>
Exhibit A            Form of Revolving Credit Note
Exhibit B            Form of Loan Request
Exhibit C            Form of Compliance Certificate
Exhibit D            Assignment and Acceptance
Exhibit E            Form of Guaranty
Exhibit F            Form of Subsidiary Reimbursement Agreement
</TABLE>

<TABLE>
<CAPTION>
                                Schedules
                                ---------
<S>                  <C>
Schedule 1           Lenders and Commitments
Schedule 4.1.1       Existing Letters of Credit
Schedule 7.3         Title to Properties
Schedule 7.7         Litigation
Schedule 7.16        Environmental Compliance
Schedule 7.17        Subsidiaries Etc.
Schedule 9.1         Existing Indebtedness
Schedule 9.2         Existing Liens
Schedule 9.3         Existing Investments
</TABLE>

<PAGE>

                                                                BM DRAFT 9/10/03

                                REVOLVING CREDIT
                                    AGREEMENT

      This REVOLVING CREDIT AGREEMENT is made as of October 16, 2003, by and
among COACH, INC. (the "Borrower"), a Maryland corporation having its principal
place of business at 516 West 34th Street, New York, New York 10001, FLEET
NATIONAL BANK, a national banking association ("Fleet"), the other lending
institutions listed on Schedule 1 and Fleet, as administrative agent (the
"Administrative Agent") for itself and such other lending institutions.

      1. DEFINITIONS AND RULES OF INTERPRETATION.

            1.1. DEFINITIONS. The following terms shall have the meanings set
      forth in this Section 1 or elsewhere in the provisions of this Credit
      Agreement referred to below:

      Adjustment Date. With respect to any quarter, the second Business Day
following the Administrative Agent's receipt of the Compliance Certificate
required to be delivered pursuant to Section 8.3(c) for such quarter; provided,
however, that in the event that the Borrower fails to deliver any Compliance
Certificate to the Administrative Agent within the time period set forth in
Section 8.3(c), the Adjustment Date shall be the second Business Day following
the date on which such Compliance Certificate was required to be delivered
pursuant to Section 8.3(c).

      Administrative Agent's Office. The Administrative Agent's office located
at 100 Federal Street, Boston, Massachusetts 02110, or at such other location as
the Administrative Agent may designate from time to time.

      Administrative Agent. Fleet National Bank, acting as administrative agent
for the Lenders and each other Person appointed as the successor Administrative
Agent in accordance with Section 14.9.

      Administrative Agent's Fee. See Section 5.2.

      Administrative Agent's Special Counsel. Bingham McCutchen LLP or such
other counsel as may be approved by the Administrative Agent.

      Affiliate. Any Person that would be considered to be an affiliate of any
other Person under Rule 144(a) of the Rules and Regulations of the Securities
and Exchange Commission, as in effect on the date hereof, if such other Person
were issuing securities.

      Applicable Margin. Subject to the last paragraph of this definition and
with respect to each period commencing on an Adjustment Date through the date
immediately preceding the next Adjustment Date (each a "Rate Adjustment
Period"), the Applicable Margin with respect to Prime Rate Loans, Eurodollar
Rate Loans, Standby Letter of Credit Fees, Documentary Letter of Credit Fees or
Commitment Fees, as the case may be, shall be the applicable margin set forth
below for each such category with respect to the Fixed Charge Ratio, as
determined for the Reference Period of the Borrower and its Subsidiaries ending
on the last day of the

<PAGE>

fiscal quarter of the Borrower and its Subsidiaries ended immediately prior to
the applicable Rate Adjustment Period.

<TABLE>
<CAPTION>
                                                                  STANDBY         DOCUMENTARY
                                                                 LETTER OF         LETTER OF
             FIXED CHARGE      PRIME RATE     EURODOLLAR          CREDIT             CREDIT          COMMITMENT
LEVEL           RATIO            LOANS        RATE LOANS           FEES               FEES              FEE
-----           -----            -----        ----------           ----               ----              ---
<S>        <C>                 <C>            <C>                <C>              <C>                <C>
  I        Greater than or
           equal to              0.000%          0.550%           0.550%            0.2250%             0.125%
           8.00:1.00

 II        Less than
           8.00:1.00 but         0.000%          0.625%           0.625%            0.3125%             0.150%
           greater than or
           equal to
           6.50:1.00

 III       Less than
           6.50:1.00 but         0.000%          0.750%           0.750%            0.3750%             0.200%
           greater than or
           equal to
           5.00:1.00

 IV        Less than
           5.00:1.00 but         0.000%          1.000%           1.000%            0.5000%             0.250%
           greater than or
           equal to
           3.50:1.00

  V        Less than
           3.50:1.00             0.000%          1.250%           1.250%            0.6250%             0.300%
</TABLE>

      During the period commencing on the Closing Date through the date
immediately preceding the first Adjustment Date to occur after the fiscal
quarter ending March 27, 2004, the Applicable Margin with respect to the Loans
outstanding and the Letter of Credit Fees and the Commitment Fee payable shall
be the Applicable Margin set forth in Level III above. Notwithstanding the
foregoing, (a) if the Borrower fails to deliver any Compliance Certificate
required under Section 8.3(c) hereof, then, for the period commencing on the
next Adjustment Date to occur subsequent to such failure through the date
immediately following the date on which such Compliance Certificate is
delivered, the Applicable Margin shall be the Applicable Margin set forth in
Level V above, and (b) at all times while an Event of Default shall have
occurred and be continuing, the Applicable Margin to be included in the
calculations set forth in Section 5.11 shall be the Applicable Margin set forth
in Level V above.

      Applicable Pension Legislation. At any time, any pension or retirement
benefits legislation (be it national, federal, provincial, territorial or
otherwise) then applicable to the Borrower or any of its Subsidiaries.

      Arrangement Fee. See Section 5.1.

      Arranger. Fleet Securities, Inc.

<PAGE>

      Assignment and Acceptance. See Section 15.1.

      Balance Sheet Date. June 28, 2003.

      Borrower. As defined in the preamble hereto.

      Business Day. Any day on which banking institutions in Boston,
Massachusetts and New York, New York, are open for the transaction of banking
business and, in the case of Eurodollar Rate Loans, also a day which is a
Eurodollar Business Day.

      Capital Expenditures. Amounts paid or Indebtedness incurred by the
Borrower or any of its Subsidiaries in connection with (i) additions to
property, plant and equipment and other capital expenditures of the Borrower or
any of its Subsidiaries that are (or would be required to be) set forth in a
consolidated statement of cash flows of the Borrower for such period prepared in
accordance with GAAP, and (ii) without duplication, obligations with respect to
Capitalized Leases and Synthetic Leases (had the Synthetic Lease been treated
for accounting purposes as a Capitalized Lease) incurred by the Borrower or any
of its Subsidiaries during such period.

      Capitalized Leases. Leases under which the Borrower or any of its
Subsidiaries is the lessee or obligor, the discounted future rental payment
obligations under which are required to be capitalized on the balance sheet of
the lessee or obligor in accordance with GAAP.

      Capital Stock. Any and all shares, interests, participations or other
equivalents (however designated) of capital stock of a corporation, any and all
equivalent ownership interests in a Person (other than a corporation) and any
and all warrants, rights or options to purchase any of the foregoing.

      CERCLA. The Comprehensive Environmental Response, Compensation and
Liability Act of 1980 as amended.

      Change of Control. An event or series of events by which any person or
group of persons (within the meaning of Section 13 or 14 of the Securities
Exchange Act of 1934) shall have acquired beneficial ownership (within the
meaning of Rule 13d-3 promulgated by the Securities and Exchange Commission
under said Act), directly or indirectly, of twenty percent (20%) or more of the
outstanding shares of Capital Stock of the Borrower; or, during any period of
twelve consecutive calendar months, individuals who were directors of the
Borrower on the first day of such period (together with any new directors whose
election by such board or whose nomination for election by the shareholders of
the Borrower was approved by a vote of a majority of the directors still in
office who were either directors at the beginning of such period or whose
election or nomination for election was previously so approved) shall cease to
constitute a majority of the board of directors of the Borrower.

      CJI. Coach Japan, Inc., a joint venture of the Borrower with Sumitomo
Corporation.

      Closing Date. The first date on which the conditions set forth in Section
11 have been satisfied and any Revolving Credit Loans are to be made or any
Letter of Credit is to be issued hereunder.

<PAGE>

      Closing Fee. See Section 5.1.

      Code. The Internal Revenue Code of 1986.

      Commitment. With respect to each Lender, the amount set forth on Schedule
1 hereto as the amount of such Lender's commitment to make Revolving Credit
Loans to, and to participate in the issuance, extension, amendment and renewal
of Letters of Credit for the account of, the Borrower, as the same may be
reduced from time to time; or if such commitment is terminated pursuant to the
provisions hereof, zero.

      Commitment Fee. See Section 2.2.

      Commitment Percentage. With respect to each Lender, the percentage set
forth on Schedule 1 hereto as such Lender's percentage of the aggregate
Commitments of all of the Lenders.

      Compliance Certificate. See Section 8.3(c).

      Consolidated or consolidated. With reference to any term defined herein,
shall mean that term as applied to the accounts of the Borrower and its
Subsidiaries, consolidated in accordance with GAAP.

      Consolidated EBIT. Consolidated Net Income, plus, to the extent deducted
in determining Consolidated Net Income, consolidated income taxes and
Consolidated Total Interest Expense, in each case as determined in accordance
with GAAP.

      Consolidated EBITDA. With respect to any fiscal period, an amount equal to
the sum of (a) Consolidated EBIT for such period plus (b) consolidated
depreciation and consolidated amortization for such period as determined in
accordance with GAAP.

      Consolidated EBITDAR. With respect to any fiscal period, an amount equal
to the sum of (a) Consolidated EBITDA for such period plus (b) Rental Expense
for such period as determined in accordance with GAAP.

      Consolidated Net Income. The consolidated net income (or loss) of the
Borrower and its Subsidiaries determined in accordance with GAAP.

      Consolidated Total Funded Debt. With respect to the Borrower and its
Subsidiaries, the sum, without duplication, of the aggregate amount of
Indebtedness of the Borrower and its Subsidiaries, on a consolidated basis,
relating to (i) obligations for borrowed money, (ii) the deferred purchase price
of assets (other than trade payables incurred in the ordinary course of
business), and (iii) obligations under any Synthetic Leases or any Capitalized
Leases, but excluding the Maximum Drawing Amount of all Letters of Credit
outstanding and the maximum drawing amount of any other letters of credit
outstanding.

      Consolidated Total Interest Expense. For any period, interest expense
(without deduction of interest income) of the Borrower and its Subsidiaries,
determined on a consolidated basis in accordance with GAAP.

<PAGE>

      Conversion Request. A notice given by the Borrower to the Administrative
Agent of the Borrower's election to convert or continue a Loan in accordance
with Section 2.7.

      Credit Agreement. This Revolving Credit Agreement, including the Schedules
and Exhibits hereto.

      Default. See Section 13.1.

      Delinquent Lender. See Section 14.5.3.

      Distribution. The declaration or payment of any dividend on or in respect
of any shares of any class of Capital Stock of the Borrower, other than
dividends payable solely in shares of common stock of the Borrower; the
purchase, redemption, defeasance, retirement or other acquisition of, or sinking
fund or other similar payment in respect of, any shares of any class of Capital
Stock of the Borrower, directly or indirectly through a Subsidiary of the
Borrower or otherwise; the return of capital by the Borrower to its shareholders
as such; or any other distribution on or in respect of any shares of any class
of Capital Stock of the Borrower.

      Documentary Letter of Credit Fee. See Section 4.6.

      Dollars or $. Dollars in lawful currency of the United States of America.

      Domestic Lending Office. Initially, the office of each Lender designated
as such in Schedule 1 hereto; thereafter, such other office of such Lender, if
any, located within the United States that will be making or maintaining Base
Rate Loans.

      Drawdown Date. The date on which any Revolving Credit Loan is made or is
to be made, and the date on which any Revolving Credit Loan is converted or
continued in accordance with Section 2.7.

      Eligible Assignee. Any of (a) a commercial bank or other financial
institution; (b) a Lender Affiliate; and (c) if, but only if, any Default or
Event of Default has occurred and is continuing, any other bank, insurance
company, commercial finance company or other financial institution or other
Person approved by the Administrative Agent.

      Employee Benefit Plan. Any employee benefit plan, whether single-employer
or multiple-employer, within the meaning of Section 3(3) of ERISA maintained or
contributed to by the Borrower or any ERISA Affiliate, other than a Guaranteed
Pension Plan or a Multiemployer Plan.

      Environmental Laws. Any judgment, decree, order, law, license, rule or
regulation pertaining to environmental matters, including without limitation,
those arising under the Resource Conservation and Recovery Act, CERCLA, the
Superfund Amendments and Reauthorization Act of 1986, the Federal Clean Water
Act, the Federal Clean Air Act, the Toxic Substances Control Act, or any state,
local or foreign law, statute, regulation, ordinance, order or decree relating
to health, safety or the environment.

      EPA. See Section 7.16(b).

<PAGE>

      ERISA. The Employee Retirement Income Security Act of 1974.

      ERISA Affiliate. Any Person which is treated as a single employer with the
Borrower under Section 414(b) or (c) of the Code.

      ERISA Reportable Event. A reportable event with respect to a Guaranteed
Pension Plan within the meaning of Section 4043 of ERISA and the regulations
promulgated thereunder.

      Eurocurrency Reserve Rate. For any day with respect to a Eurodollar Rate
Loan, the maximum rate (expressed as a decimal) at which any bank subject
thereto would be required to maintain reserves under Regulation D of the Board
of Governors of the Federal Reserve System (or any successor or similar
regulations relating to such reserve requirements) against "Eurocurrency
Liabilities" (as that term is used in Regulation D), if such liabilities were
outstanding. The Eurocurrency Reserve Rate shall be adjusted automatically on
and as of the effective date of any change in the Eurocurrency Reserve Rate.

      Eurodollar Business Day. Any day on which commercial banks are open for
international business (including dealings in Dollar deposits) in London or such
other Eurodollar interbank market as may be selected by the Administrative Agent
in its sole discretion acting in good faith.

      Eurodollar Lending Office. Initially, the office of each Lender designated
as such in Schedule 1 hereto; thereafter, such other office of such Lender, if
any, that shall be making or maintaining Eurodollar Rate Loans.

      Eurodollar Rate. For any Interest Period with respect to a Eurodollar Rate
Loan, the rate of interest equal to (a) the arithmetic average of the rates per
annum for the Reference Lender (rounded upwards to the nearest 1/16 of one
percent) of the rate at which such Reference Lender's Eurodollar Lending Office
is offered Dollar deposits two Eurodollar Business Days prior to the beginning
of such Interest Period in the interbank eurodollar market where the eurodollar
and foreign currency and exchange operations of such Eurodollar Lending Office
are customarily conducted, for delivery on the first day of such Interest Period
for the number of days comprised therein and in an amount comparable to the
principal amount of the Eurodollar Rate Loan of the Reference Lender to which
such Interest Period applies, divided by (b) a number equal to 1.00 minus the
Eurocurrency Reserve Rate, if applicable.

      Eurodollar Rate Loans. Revolving Credit Loans bearing interest calculated
by reference to the Eurodollar Rate.

      Event of Default. See Section 13.1.

      Executive Order. See Section 7.19.

      Extension Notice. See Section 2.1(c).

      Fee Letter. The fee letter dated as of the Closing Date, among the
Borrower, the Administrative Agent and the Arranger.

<PAGE>

      Fees. Collectively, the Commitment Fee, the Letter of Credit Fees, the
Administrative Agent's Fee, the Closing Fee, the Arrangement Fee and any other
fee agreed to be paid by the Borrower pursuant to or in connection with this
Credit Agreement.

      Financial Affiliate. A Subsidiary of the bank holding company controlling
any Lender, which Subsidiary is engaging in any of the activities permitted by
Section 4(e) of the Bank Holding Company Act of 1956 (12 U.S.C. Section 1843).

      Fixed Charge Ratio. As at any date of determination, the ratio of (a) the
sum of Consolidated EBITDAR minus Capital Expenditures for the Reference Period
ending on such date, to (b) the sum of Consolidated Total Interest Expense plus
Rental Expense for such Reference Period.

      Fixed Rate. With respect to any Swing Line Loan, the fixed rate of
interest quoted by the Swing Line Lender on any date or whenever the Borrower
requests a Swing Line Loan, which rate the Swing Line Lender is willing to
charge with respect to a Swing Line Loan made by it.

      Fixed Rate Loans. A Swing Line Loan bearing interest at the Fixed Rate for
a period of time agreed to by the Borrower and the Swing Line Lender pursuant to
Section 2.5(c).

      Fleet. Fleet National Bank, a national banking association, in its
individual capacity.

      Foreign Assets Control Regulations. See Section 7.19.

      GAAP or generally accepted accounting principles. (a) When used in Section
10, whether directly or indirectly through reference to a capitalized term used
therein, means (i) principles that are consistent with the principles
promulgated or adopted by the Financial Accounting Standards Board and its
predecessors, in effect for the fiscal year ended on the Balance Sheet Date, and
(ii) to the extent consistent with such principles, the accounting practice of
the Borrower reflected in its financial statements for the year ended on the
Balance Sheet Date, and (b) when used in general, other than as provided above,
means principles that are consistent with the principles promulgated or adopted
by the Financial Accounting Standards Board and its predecessors, which are
applicable to the circumstances as of the date of determination, consistently
applied.

      Governing Documents. With respect to any Person, its certificate or
articles of incorporation, its by-laws and all shareholder agreements, voting
trusts and similar arrangements applicable to any of its Capital Stock.

      Governmental Authority. Any foreign, federal, state, regional, local,
municipal or other government, or any department, commission, board, bureau,
agency, public authority or instrumentality thereof, or any court or arbitrator.

      Guaranteed Pension Plan. Any employee pension benefit plan within the
meaning of Section 3(2) of ERISA maintained or contributed to by the Borrower or
any ERISA Affiliate the benefits of which are guaranteed on termination in full
or in part by the PBGC pursuant to Title IV of ERISA, other than a Multiemployer
Plan.

<PAGE>

      Guarantors. Collectively, each Significant Subsidiary of the Borrower
existing on the Closing Date and each other Person which is required to be or
become a guarantor from time to time pursuant to Section 8.11 hereof. Each such
Person shall be a party to a Guaranty.

      Guaranty(ies). Collectively, the guaranties dated as of the date required
by Section 8.11 from each Person required to become a Guarantor pursuant to
Section 8.11 in favor of the Administrative Agent and the Lenders, in each case
of the payment and performance of the Obligations, and in the form attached
hereto as Exhibit E.

      Hazardous Substances. Any hazardous waste, as defined by 42 U.S.C. Section
6903(5), any hazardous substances as defined by 42 U.S.C. Section 9601(14), any
pollutant or contaminant as defined by 42 U.S.C. Section 9601(33) and any toxic
substances, oil or hazardous materials or other chemicals or substances
regulated by any Environmental Laws.

      Indebtedness. As to any Person and whether recourse is secured by or is
otherwise available against all or only a portion of the assets of such Person
and whether or not contingent, but without duplication:

            (a) every obligation of such Person for money borrowed,

            (b) every obligation of such Person evidenced by bonds, debentures,
      notes or other similar instruments, including obligations incurred in
      connection with the acquisition of property, assets or businesses,

            (c) every reimbursement obligation of such Person with respect to
      letters of credit, bankers' acceptances or similar facilities issued for
      the account of such Person,

            (d) every obligation of such Person issued or assumed as the
      deferred purchase price of property or services (including securities
      repurchase agreements but excluding trade accounts payable or accrued
      liabilities arising in the ordinary course of business which are not
      overdue or which are being contested in good faith),

            (e) every obligation of such Person under any Capitalized Lease,

            (f) every obligation of such Person under any Synthetic Lease,

            (g) all sales by such Person of (i) accounts or general intangibles
      for money due or to become due, (ii) chattel paper, instruments or
      documents creating or evidencing a right to payment of money or (iii)
      other receivables (collectively "receivables"), whether pursuant to a
      purchase facility or otherwise, other than in connection with the
      disposition of the business operations of such Person relating thereto or
      a disposition of defaulted receivables for collection and not as a
      financing arrangement, and together with any obligation of such Person to
      pay any discount, interest, fees, indemnities, penalties, recourse,
      expenses or other amounts in connection therewith,

            (h) every obligation of such Person under any forward contract,
      futures contract, swap, option or other financing agreement or arrangement
      (including, without limitation, caps, floors, collars and similar
      agreements), the value of which is

<PAGE>

      dependent upon interest rates, currency exchange rates, commodities or
      other indices (a "derivative contract"),

            (i) every obligation in respect of Indebtedness of any other entity
      (including any partnership in which such Person is a general partner) to
      the extent that 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 that the terms of such Indebtedness provide that such
      Person is not liable therefor and such terms are enforceable under
      applicable law, and

            (j) every obligation, contingent or otherwise, of such Person
      guaranteeing, or having the economic effect of guarantying or otherwise
      acting as surety for, any obligation of a type described in any of clauses
      (a) through (i) of another Person, in any manner, whether directly or
      indirectly.

      Ineligible Securities. Securities which may not be underwritten or dealt
in by member banks of the Federal Reserve System under Section 16 of the Banking
Act of 1933 (12 U.S.C. Section 24, Seventh), as amended.

      Interest Payment Date. (a) As to any Prime Rate Loan, the first day of the
next succeeding calendar quarter with respect to interest accrued during such
calendar quarter, including, without limitation, the calendar quarter which
includes the Drawdown Date of such Prime Rate Loan; (b) as to any Eurodollar
Rate Loan in respect of which the Interest Period is (i) 3 months or less, the
last day of such Interest Period and (ii) more than 3 months, the date that is 3
months from the first day of such Interest Period and, in addition, the last day
of such Interest Period; and (c) as to any Swing Line Loan which is also a Fixed
Rate Loan, on the first day of the next succeeding calendar quarter with respect
to interest accrued during such calendar quarter.

      Interest Period. With respect to each Revolving Credit Loan, (a)
initially, the period commencing on the Drawdown Date of such Loan and ending on
the last day of one of the periods set forth below, as selected by the Borrower
in a Loan Request or as otherwise required by the terms of this Credit Agreement
(i) for any Prime Rate Loan, the last day of the calendar quarter; (ii) for any
Fixed Rate Loan, the period (not to exceed ten (10) days) requested by the
Borrower and agreed to by the Swing Line Lender pursuant to Section 2.5(c); and
(iii) for any Eurodollar Rate Loan, 1, 2, 3, or 6 months; and (b) thereafter,
each period commencing on the last day of the next preceding Interest Period
applicable to such Revolving Credit Loan and ending on the last day of one of
the periods set forth above, as selected by the Borrower in a Conversion
Request; provided that all of the foregoing provisions relating to Interest
Periods are subject to the following:

                  (A) if any Interest Period with respect to a Eurodollar Rate
            Loan would otherwise end on a day that is not a Eurodollar Business
            Day, that Interest Period shall be extended to the next succeeding
            Eurodollar Business Day unless the result of such extension would be
            to carry such Interest Period into another calendar month, in which
            event such Interest Period shall end on the immediately preceding
            Eurodollar Business Day;

<PAGE>

                  (B) if any Interest Period with respect to a Prime Rate Loan
            would end on a day that is not a Business Day, that Interest Period
            shall end on the next succeeding Business Day;

                  (C) if the Borrower shall fail to give notice as provided in
            Section 2.7, the Borrower shall be deemed to have requested a
            conversion of the affected Eurodollar Rate Loan to a Prime Rate Loan
            and the continuance of all Prime Rate Loans as Prime Rate Loans on
            the last day of the then current Interest Period with respect
            thereto;

                  (D) any Interest Period relating to any Eurodollar Rate Loan
            that begins on the last Eurodollar Business Day of a calendar month
            (or on a day for which there is no numerically corresponding day in
            the calendar month at the end of such Interest Period) shall end on
            the last Eurodollar Business Day of a calendar month; and

                  (E) any Interest Period that would otherwise extend beyond the
            Revolving Credit Loan Maturity Date shall end on the Revolving
            Credit Loan Maturity Date.

      International Standby Practices. With respect to any standby Letter of
Credit, the International Standby Practices (ISP98), International Chamber of
Commerce Publication No. 590, or any successor code of standby letter of credit
practices among banks adopted by the Issuing Lender in the ordinary course of
its business as a standby letter of credit issuer and in effect at the time of
issuance of such Letter of Credit.

      Investments. All expenditures made and all liabilities incurred
(contingently or otherwise) for the acquisition of stock or Indebtedness of, or
for loans, advances, capital contributions or transfers of property to, or in
respect of any guaranties (or other commitments as described under
Indebtedness), or obligations of, any Person.

      Issuing Lender. With respect to standby Letters of Credit, Fleet, and with
respect to documentary Letters of Credit, any Lender acceptable to the
Administrative Agent and the Borrower. As used herein, the term Issuing Lender
shall refer, as the context requires, to the Issuing Lender issuing, extending,
renewing or amending any particular Letter of Credit or collectively to each and
every Lender which acts as an Issuing Lender hereunder.

      Lender Affiliate. (a) With respect to any Lender, (i) an Affiliate of such
Lender or (ii) for all purposes hereof other than the definition of "Eligible
Assignee", any entity (whether a corporation, partnership, limited liability
company, trust or legal entity) that is engaged in making, purchasing, holding
or otherwise investing in bank loans and similar extensions of credit in the
ordinary course of its business and is administered or managed by such Lender or
an Affiliate of such Lender, and (b) following a Default or an Event of Default,
with respect to any Lender that is a fund which invests in bank loans and
similar extensions of credit, any other entity (whether a corporation,
partnership, limited liability company, trust or other legal entity) that is a
fund that invests in bank loans and similar extensions of credit and is managed
by the same investment advisor as such Lender or by an Affiliate of such
investment advisor.

<PAGE>

      Lenders. Fleet and the other lending institutions listed on Schedule 1
hereto and any other Person who becomes an assignee of any rights and
obligations of a Lender pursuant to Section 15.

      Letter of Credit. See Section 4.1.1.

      Letter of Credit Application. See Section 4.1.1.

      Letter of Credit Fee. See Section 4.6.

      Letter of Credit Participation. See Section 4.1.4.

      Leverage Ratio. As at any date of determination, the ratio of (a)
Consolidated Total Funded Debt outstanding on such date to (b) Consolidated
EBITDA for the Reference Period ending on such date.

      Lien. Any mortgage, deed of trust, security interest, pledge,
hypothecation, assignment, attachment, deposit arrangement, encumbrance, lien
(statutory, judgment or otherwise), or other security agreement or preferential
arrangement of any kind or nature whatsoever (including any conditional sale or
other title retention agreement, any Capitalized Lease, any Synthetic Lease, any
financing lease involving substantially the same economic effect as any of the
foregoing and the filing of any financing statement under the UCC or comparable
law of any jurisdiction).

      Loan Documents. This Credit Agreement, the Notes, the Letter of Credit
Applications, the Letters of Credit, the Guaranties and the Fee Letter.

      Loan Request. See Section 2.6.

      Loans. The Revolving Credit Loans.

      Material Adverse Effect. With respect to any change or effect, a material
adverse change in, or a material adverse effect on, as the case may be, (i)
business, properties, condition (economic, financial or otherwise), assets,
operations or income of the Borrower, individually, or the Borrower and its
Subsidiaries, taken as a whole, (ii) the ability of the Borrower or any
Guarantor to perform its obligations under any Loan Document to which it is a
party, or (iii) the ability of the Administrative Agent or any Lender to enforce
the Loan Documents.

      Maximum Drawing Amount. The maximum aggregate amount that the
beneficiaries may at any time draw under outstanding Letters of Credit, as such
aggregate amount may be reduced from time to time pursuant to the terms of the
Letters of Credit.

      Minimum Liquidity. Before and after giving effect to a proposed
transaction under Sections 9.3(h) or 9.4, the Borrower shall have (i) at least
twenty-five percent (25%) of Total Commitment as unused availability, or (ii) at
least $25,000,000 unrestricted excess cash or cash equivalents on the Balance
Sheet, which shall be certified by the Borrower in form and substance
satisfactory to the Administrative Agent.

<PAGE>

      Minority Owned Joint Venture. Any joint venture or other entity which is
not a Subsidiary, other than CJI.

      Moody's. Moody's Investors Services, Inc.

      Multiemployer Plan. Any multiemployer plan within the meaning of Section
3(37) of ERISA maintained or contributed to by the Borrower or any ERISA
Affiliate.

      Notes. The Revolving Credit Notes.

      Obligations. All indebtedness, obligations and liabilities of any of the
Borrower and its Subsidiaries to any of the Lenders (including the Swing Line
Lender), any Issuing Lender and the Administrative Agent arising or incurred
under this Credit Agreement or any of the other Loan Documents or in respect of
any of the Loans made or Reimbursement Obligations incurred or any Note, Letter
of Credit Application, Letter of Credit or other instrument at any time
evidencing any thereof, whether any of such indebtedness, obligations or
liabilities (a) arise or are incurred individually or collectively, directly or
indirectly, jointly or severally, absolutely or contingently, (b) arise by
contract, operation of law or otherwise, (c) are matured or unmatured,
liquidated or unliquidated, secured or unsecured, or (d) exist on the date of
this Credit Agreement or arise thereafter.

      outstanding. With respect to the Loans, the aggregate unpaid principal
thereof as of any date of determination.

      PBGC. The Pension Benefit Guaranty Corporation created by Section 4002 of
ERISA and any successor entity or entities having similar responsibilities.

      Permitted Liens. Liens permitted by Section 9.2.

      Person. Any individual, corporation, limited liability company
partnership, limited liability partnership, trust, other unincorporated
association, business, or other legal entity, and any Governmental Authority.

      Prime Rate. The higher of (a) the variable annual rate of interest
publicly announced from time to time by Fleet as its "prime rate", such rate
being a reference rate, and (b) one-half of one percent (0.5%) above the Federal
Funds Effective Rate. For the purposes of this definition, "Federal Funds
Effective Rate" shall mean for any day, the rate per annum equal to the weighted
average of the rates on overnight federal funds transactions with members of the
Federal Reserve System arranged and published by federal funds brokers for such
day (or, if such day is not a Business Day, for the next preceding Business
Day), by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average of the quotations for
such day on such transactions received by the Administrative Agent from three
funds brokers of recognized standing selected by the Administrative Agent.
Changes in the Prime Rate resulting from any changes in Fleet's "prime rate"
shall take place immediately without notice or demand of any kind.

      Prime Rate Loans. Revolving Credit Loans bearing interest calculated by
reference to the Prime Rate.

<PAGE>

      Real Estate. All real property at any time owned or leased (as lessee or
sublessee of such leasehold interest) by the Borrower or any of its
Subsidiaries.

      Record. The grid attached to a Note, or the continuation of such grid, or
any other similar record, including computer records, maintained by any Lender
with respect to any Loan referred to in such Note.

      Reference Lender. Fleet, or, in the event that Fleet is unable to provide
a quote for the Eurodollar Rate, such other Lender as Fleet shall select.

      Reference Period. As of any date of determination, the period of four (4)
consecutive fiscal quarters of the Borrower and its Subsidiaries ending on the
last day of any fiscal quarter, treated as a single accounting period.

      Register. See Section 15.3.

      Reimbursement Obligation. The Borrower's obligation to reimburse the
Issuing Lender and the Lenders on account of any drawing under any Letter of
Credit as provided in Section 4.2.

      Rental Expense. All rental expenses of the Borrower or any of its
Subsidiaries during any applicable fiscal period with respect to Rental
Obligations, determined on a consolidated basis in accordance with GAAP.

      Rental Obligations. All obligations of the Borrower or any of its
Subsidiaries under any rental agreements or leases of real or personal property,
other than (a) obligations that can be terminated by the giving of notice
without liability to the Borrower or such Subsidiary in excess of the liability
for rent due as of the date on which such notice is given and under which no
penalty or premium is paid as a result of any such termination, and (b)
obligations in respect of any Capitalized Leases or any Synthetic Leases.

      Replacement Lender. See Section 2.1(c).

      Required Lenders. As of any date, the Lender(s) holding greater than fifty
percent (50%) of the outstanding principal amount of the Revolving Credit Notes
on such date; and if no such principal is outstanding, the Lender(s) whose
aggregate Commitment(s) constitute(s) greater than fifty percent (50%) of the
Total Commitment.

      Restricted Payment. In relation to the Borrower and its Subsidiaries, any
(a) Distribution, or (b) payment by the Borrower or its Subsidiaries (i) to the
Borrower's or any such Subsidiary's shareholders (or other equity holders), in
each case, other than to the Borrower, or (ii) to any Affiliate of the Borrower
or any Subsidiary or any Affiliate of the Borrower's or such Subsidiary's
shareholders (or other equity holders), in each case, other than to the
Borrower.

      Revolving Credit Loan Maturity Date. October 16, 2006, as the same may be
extended pursuant to Section 2.1(c).

<PAGE>

      Revolving Credit Loans. Revolving credit loans (including the Swing Line
Loans) made or to be made by the Lenders or the Administrative Agent to the
Borrower pursuant to Section 2.

      Revolving Credit Note Record. A Record with respect to a Revolving Credit
Note.

      Revolving Credit Notes. See Section 2.4.

      Settlement. The making or receiving of payments, in immediately available
funds, by the Lenders, to the extent necessary to cause each Lender's actual
share of the outstanding amount of Revolving Credit Loans (after giving effect
to any Loan Request) to be equal to such Lender's Commitment Percentage of the
outstanding amount of such Revolving Credit Loans (after giving effect to any
Loan Request), in any case where, prior to such event or action, the actual
share is not so equal.

      Settlement Amount. See Section 2.9.1.

      Settlement Date. (a) The Drawdown Date relating to any Loan Request, (b)
the date which is no more than ten (10) days after the making of a Swing Line
Loan pursuant to Section 2.6.2, (d) at the option of the Administrative Agent,
on any Business Day following a day on which the account officers of the
Administrative Agent active upon the Borrower's account become aware of the
existence of an Event of Default, (e) any day on which any conversion of a Prime
Rate Loan to a Eurodollar Rate Loan occurs, or (f) any Business Day on which (i)
the amount of outstanding Revolving Credit Loans decreases and (ii) the amount
of the Administrative Agent's Revolving Credit Loans outstanding equals zero
Dollars ($0).

      Settling Lender. See Section 2.9.1.

      Significant Subsidiary. Each domestic Subsidiary of the Borrower which
qualifies as "significant", as such term is defined under Regulation S-X
promulgated by the Securities and Exchange Commission under the Securities
Exchange Act of 1934, as amended.

      S&P. Standard & Poor's Ratings Group.

      Standby Letter of Credit Fee. See Section 4.6.

      Subsidiary. At any time and from time to time, any corporation,
association, partnership, limited liability company, joint venture or other
business entity of which the Borrower and/or any Subsidiary of the Borrower,
directly or indirectly at such time, either (a) owns or controls more than fifty
percent (50%) of the Voting Stock, or (b) is entitled to share in more than
fifty percent (50%) of the profits and losses, however determined, but excluding
CJI for all purposes hereof, other than when used in Sections 8.3(a) and (b),
unless and until Borrower shall own or control one hundred percent (100%) of the
Voting Stock of, or be entitled to share in one hundred percent (100%) of the
profits and losses of, CJI.

      Swing Line Lender. Fleet.

      Swing Line Loans. Revolving Credit Loans made by Fleet pursuant to Section
2.6.2.

<PAGE>

      Synthetic Lease. Any lease of goods or other property, whether real or
personal, which is treated as an operating lease under GAAP and as a loan or
financing for U.S. income tax purposes.

      Total Commitment. The sum of the Commitments of the Lenders, as in effect
from time to time.

      Trading with the Enemy Act. See Section 7.19.

      Type. As to any Revolving Credit Loan which is not a Swing Line Loan, its
nature as a Prime Rate Loan or a Eurodollar Rate Loan.

      Uniform Customs. With respect to any Letter of Credit, the Uniform Customs
and Practice for Documentary Credits (1993 Revision), International Chamber of
Commerce Publication No. 500 or any successor version thereto adopted by the
Issuing Lender in the ordinary course of its business as a letter of credit
issuer and in effect at the time of issuance of such Letter of Credit.

      Unpaid Reimbursement Obligation. Any Reimbursement Obligation for which
the Borrower does not reimburse the Administrative Agent, the Issuing Lender and
the Lenders on the date specified in, and in accordance with, Section 4.2.

      Voting Stock. Stock or similar interests, of any class or classes (however
designated), the holders of which are at the time entitled, as such holders, to
vote for the election of a majority of the directors (or persons performing
similar functions) of the corporation, association, trust or other business
entity involved, whether or not the right so to vote exists by reason of the
happening of a contingency.

            1.2. RULES OF INTERPRETATION.

                  (a) A reference to any document or agreement shall include
            such document or agreement as amended, modified or supplemented from
            time to time in accordance with its terms and the terms of this
            Credit Agreement.

                  (b) The singular includes the plural and the plural includes
            the singular.

                  (c) A reference to any law includes any amendment or
            modification to such law.

                  (d) A reference to any Person includes its permitted
            successors and permitted assigns.

                  (e) Accounting terms not otherwise defined herein have the
            meanings assigned to them by GAAP applied on a consistent basis by
            the accounting entity to which they refer.

                  (f) The words "include", "includes" and "including" are not
            limiting.

<PAGE>

                  (g) All terms not specifically defined herein or by GAAP,
            which terms are defined in the Uniform Commercial Code as in effect
            in the State of New York, have the meanings assigned to them
            therein, with the term "instrument" being that defined under Article
            9 of the Uniform Commercial Code.

                  (h) Reference to a particular "Section" refers to that section
            of this Credit Agreement unless otherwise indicated.

                  (i) The words "herein", "hereof", "hereunder" and words of
            like import shall refer to this Credit Agreement as a whole and not
            to any particular section or subdivision of this Credit Agreement.

                  (j) Unless otherwise expressly indicated, in the computation
            of periods of time from a specified date to a later specified date,
            the word "from" means "from and including," the words "to" and
            "until" each mean "to but excluding," and the word "through" means
            "to and including."

      2. THE REVOLVING CREDIT FACILITY.

            2.1. COMMITMENT TO LEND.

            (a) Subject to the terms and conditions set forth in this Credit
      Agreement, each of the Lenders severally agrees to lend to the Borrower
      and the Borrower may borrow, repay, and reborrow from time to time from
      the Closing Date up to but not including the Revolving Credit Loan
      Maturity Date upon notice by the Borrower to the Administrative Agent
      given in accordance with Section 2.6, such sums as are requested by the
      Borrower up to a maximum aggregate amount outstanding (after giving effect
      to all amounts requested) at any one time equal to such Lender's
      Commitment minus such Lender's Commitment Percentage of the sum of the
      Maximum Drawing Amount and all Unpaid Reimbursement Obligations, provided
      that the sum of the outstanding amount of the Revolving Credit Loans
      (after giving effect to all amounts requested), including the Swing Line
      Loans, plus the Maximum Drawing Amount and all Unpaid Reimbursement
      Obligations shall not at any time exceed the Total Commitment at such
      time. The Revolving Credit Loans shall be made pro rata in accordance with
      each Lender's Commitment Percentage. Each request for a Revolving Credit
      Loan hereunder shall constitute a representation and warranty by the
      Borrower that the conditions set forth in Section 11 and Section 12, in
      the case of the initial Revolving Credit Loans to be made on the Closing
      Date, and Section 12, in the case of all other Revolving Credit Loans,
      have been satisfied on the date of such request.

            (b) Limited Increase In Total Commitment. Unless a Default or Event
      of Default has occurred and is continuing, the Borrower may request, on
      one or more occasions, that the Total Commitment in effect on the date of
      such request be increased by up to $25,000,000, provided, however, that
      (i) the aggregate amount of any and all increases pursuant to this Section
      2.1(b) shall not exceed $25,000,000, (ii) any Lender which is a party to
      this Agreement prior to such increase shall have the right to elect to
      fund its pro rata share of the increase and any additional amounts
      allocated by the Administrative Agent, thereby increasing its Revolving
      Credit Commitment

<PAGE>

      hereunder, but no Lender shall be required to do so, (iii) in the event
      that it becomes necessary to include one or more new Lenders to provide
      additional funding under this Section 2.1(b) in order to enable such
      increase in the Total Commitment to occur, such new Lender must be
      reasonably acceptable to the Administrative Agent and the Borrower, (iv)
      the Lenders' Commitment Percentages shall be correspondingly adjusted, (v)
      each new Lender shall make all (if any) such payments to the other Lenders
      as may be necessary to result in the sum of the Revolving Credit Loans to
      be made by such new Lender plus such new Lender's proportionate share of
      the Maximum Drawing Amount and all Unpaid Reimbursement Obligations being
      equal to such new Lender's Commitment Percentage (as then in effect) of
      the aggregate principal amount of the sum of all Revolving Credit Loans
      outstanding to the Borrower as of such date plus the Maximum Drawing
      Amount and all Unpaid Reimbursement Obligations as of such date), and (vi)
      Revolving Credit Notes issued or amended and such other changes shall be
      made to the Loan Documents, as shall be necessary to reflect any such
      increase in the Total Commitment. Any such increase in the Total
      Commitment (whether by $25,000,000 or by a lesser amount) shall require,
      among other things, the satisfaction of such conditions precedent as the
      Administrative Agent may require, including, without limitation, the
      obtaining by any applicable Lender of requisite internal approvals, the
      Administrative Agent's receipt of evidence of applicable corporate
      authorization and other corporate documentation from the Borrower and the
      legal opinion of counsel to the Borrower, each in form and substance
      satisfactory to the Administrative Agent and such Lenders as are
      participating in such increase.

            (c) Extension of Revolving Credit Loan Maturity Date. The Borrower
      may, provided that no Default or Event of Default has occurred and is
      continuing, by written notice delivered to the Administrative Agent no
      later than sixty (60) days prior to October 16, 2005 (the "Extension
      Notice") request that the Revolving Credit Loan Maturity Date be extended
      to a date one year after the then existing Revolving Credit Loan Maturity
      Date. The Administrative Agent shall notify the Lenders of such request
      promptly after receipt, and request each Lender to notify the
      Administrative Agent of its determination to consent or not to consent to
      such extension. If each Lender consents to the extension by so notifying
      the Administrative Agent in writing no later than thirty (30) Business
      Days after notice of the Extension Request, the Revolving Credit Loan
      Maturity Date shall be extended to October 16, 2007. The determination
      with respect to such extension shall be in the sole discretion of each
      Lender. Any Lender which fails to give written notice of its consent or
      non-consent within such period shall be deemed not to have consented to
      the extension hereunder (a "Dissent"); provided that the Borrower may,
      within sixty (60) days of such Dissent, obtain a replacement lender
      satisfactory to the Administrative Agent (the "Replacement Lender") to
      assume the dissenting Lender's Loans and Commitments by (i) requesting the
      non-dissenting Lenders acquire and assume all of the dissenting Lender's
      Loans and Commitments, as provided herein, but no such Lenders shall be
      under an obligation to do so; or (ii) designating a Replacement Lender
      reasonably satisfactory to the Administrative Agent. If any satisfactory
      Replacement Lender shall be obtained, and/or any of the non-dissenting
      Lenders shall agree to acquire and assume all of the dissenting Lender's
      Loans and Commitment, then such dissenting Lender shall, so long as no
      Event of Default shall have occurred and be continuing,

<PAGE>

      assign, in accordance with Section 15, all of its Commitment, Loans, or
      Notes and other rights and obligations under this Credit Agreement and all
      other Loan Documents to such Replacement Lender or non-dissenting Lenders,
      as the case may be, in exchange for payment of the principal amount so
      assigned and all interest and fees accrued on the amount so assigned, plus
      all other Obligations then due and payable to the dissenting Lender;
      provided, however, that (i) such assignment shall be without recourse,
      representation or warranty and shall be on terms and conditions reasonably
      satisfactory to such dissenting Lender and such Replacement Lender and/or
      non-dissenting Lenders, as the case may be, and (ii) prior to any such
      assignment, the Borrowers shall have paid to such dissenting Lender all
      amounts properly demanded and unreimbursed hereunder, if applicable. Upon
      the effective date of such assignment, the Borrower shall issue
      replacement Notes in favor of such Replacement Lender and/or
      non-dissenting Lenders, as the case may be, and such institution shall
      become a "Lender" for all purposes under this Credit Agreement and the
      other Loan Documents.

            2.2. COMMITMENT FEE. The Borrower agrees to pay to the
      Administrative Agent for the accounts of the Lenders in accordance with
      their respective Commitment Percentages a commitment fee (the "Commitment
      Fee") calculated at the rate per annum of the Applicable Margin with
      respect to the Commitment Fee as in effect from time to time on the
      average daily amount during each calendar quarter or portion thereof from
      the date hereof to the Revolving Credit Loan Maturity Date by which the
      Total Commitment minus the sum of the Maximum Drawing Amount and all
      Unpaid Reimbursement Obligations exceeds the outstanding amount of
      Revolving Credit Loans (other than Swing Line Loans which shall not be
      considered usage for purposes of this calculation only) during such
      calendar quarter. The Commitment Fee shall be payable quarterly in arrears
      on the first day of each calendar quarter for the immediately preceding
      calendar quarter commencing on the first such date following the date
      hereof, with a final payment on the Revolving Credit Loan Maturity Date or
      any earlier date on which the Commitments shall terminate.

            2.3. REDUCTION OF TOTAL COMMITMENT. The Borrower shall have the
      right at any time and from time to time upon three (3) Business Days prior
      written notice to the Administrative Agent to reduce by $5,000,000 or an
      integral multiple thereof or to terminate entirely the Total Commitment,
      whereupon the Commitments of the Lenders shall be reduced pro rata in
      accordance with their respective Commitment Percentages of the amount
      specified in such notice or, as the case may be, terminated. Promptly
      after receiving any notice of the Borrower delivered pursuant to this
      Section 2.3, the Administrative Agent will notify the Lenders of the
      substance thereof. Upon the effective date of any such reduction or
      termination, the Borrower shall pay to the Administrative Agent for the
      respective accounts of the Lenders the full amount of any Commitment Fee
      then accrued on the amount of the reduction. No reduction or termination
      of the Commitments may be reinstated.

            2.4. THE REVOLVING CREDIT NOTES. The Revolving Credit Loans shall be
      evidenced by separate promissory notes of the Borrower in substantially
      the form of Exhibit A hereto (each a "Revolving Credit Note"), dated as of
      the Closing Date (or such other date on which a Lender may become a party
      hereto in accordance with
<PAGE>

      Section 15 hereof) and completed with appropriate insertions. One
      Revolving Credit Note shall be payable to the order of each Lender in a
      principal amount equal to such Lender's Commitment or, if less, the
      outstanding amount of all Revolving Credit Loans made by such Lender, plus
      interest accrued thereon, as set forth below. The Borrower irrevocably
      authorizes each Lender to make or cause to be made, at or about the time
      of the Drawdown Date of any Revolving Credit Loan or at the time of
      receipt of any payment of principal on such Lender's Revolving Credit
      Note, an appropriate notation on such Lender's Revolving Credit Note
      Record reflecting the making of such Revolving Credit Loan or (as the case
      may be) the receipt of such payment. The outstanding amount of the
      Revolving Credit Loans set forth on such Lender's Revolving Credit Note
      Record shall be prima facie evidence, absent manifest error, of the
      principal amount thereof owing and unpaid to such Lender, but the failure
      to record, or any error in so recording, any such amount on such Lender's
      Revolving Credit Note Record shall not limit or otherwise affect the
      obligations of the Borrower hereunder or under any Revolving Credit Note
      to make payments of principal of or interest on any Revolving Credit Note
      when due.

            2.5. INTEREST ON REVOLVING CREDIT LOANS. Except as otherwise
      provided in Section 5.11,

                  (a) Each Revolving Credit Loan which is a Prime Rate Loan
            shall bear interest for the period commencing with the Drawdown Date
            thereof and ending on the last day of the Interest Period with
            respect thereto at the rate per annum equal to the Prime Rate plus
            the Applicable Margin with respect to Prime Rate Loans as in effect
            from time to time.

                  (b) Each Revolving Credit Loan which is a Eurodollar Rate Loan
            shall bear interest for the period commencing with the Drawdown Date
            thereof and ending on the last day of the Interest Period with
            respect thereto at the rate per annum equal to the Eurodollar Rate
            determined for such Interest Period plus the Applicable Margin with
            respect to Eurodollar Rate Loans as in effect from time to time.

                  (c) Each Swing Line Loan shall bear interest from the period
            commencing with the Drawdown Date thereof and ending on the last day
            of the Interest Period with respect thereto at a rate per annum
            equal to, at the Borrower's option (i) the Prime Rate plus the
            Applicable Margin with respect to Prime Rate Loans in effect from
            time to time, and (ii) the Fixed Rate, which interest shall be paid
            on each Interest Payment Date for Swing Line Loans for the account
            of the Swing Line Lender. Interest periods for Swing Line Loans
            which are also Fixed Rate Loans shall be for a period of ten (10)
            days or less. The Borrower shall give the Swing Line Lender notice
            no later than 1:00 p.m. on the last day of the Interest Period that
            is a Fixed Rate Loan of its intention to repay such Swing Line Loan
            or to refund such Swing Line Loan with a Revolving Credit Loan which
            is not a Swing Line Loan in accordance with Section 2.9. In the
            event that the Borrower fails to give such notice, such Swing Line
            Loan shall, on the last day of such Interest Period cease to be a
            Fixed Rate Loan.

<PAGE>

The Borrower promises to pay interest on each Revolving Credit Loan in arrears
on each Interest Payment Date with respect thereto.

            2.6. REQUESTS FOR REVOLVING CREDIT LOANS.

                  2.6.1. GENERAL. The Borrower shall give to the Administrative
            Agent written notice in the form of Exhibit B hereto (or telephonic
            notice confirmed promptly in a writing in the form of Exhibit B
            hereto) of each Revolving Credit Loan requested hereunder (a "Loan
            Request") (a) by no later than 11:00 a.m. (Boston time) on the
            proposed Drawdown Date of any Prime Rate Loan and (b) by no later
            than 12:00 noon (Boston time) no less than three (3) Eurodollar
            Business Days prior to the proposed Drawdown Date of any Eurodollar
            Rate Loan. Each such notice shall specify (i) the principal amount
            of the Revolving Credit Loan requested, (ii) the proposed Drawdown
            Date of such Revolving Credit Loan, (iii) the Interest Period for
            such Revolving Credit Loan and (iv) the Type of such Revolving
            Credit Loan. Promptly upon receipt of any such notice, the
            Administrative Agent shall notify each of the Lenders thereof. Each
            Loan Request shall be irrevocable and binding on the Borrower and
            shall obligate the Borrower to accept the Revolving Credit Loan
            requested from the Lenders on the proposed Drawdown Date. With
            respect to Eurodollar Rate Loans, each Loan Request shall be in a
            minimum aggregate amount of $1,000,000 or an integral multiple of
            $500,000 in excess thereof, and with respect to Prime Rate Loans,
            each Loan Request shall be in a minimum aggregate amount of $500,000
            or an integral multiple of $100,000 in excess thereof.

                  2.6.2. SWING LINE. Notwithstanding the notice and minimum
            amount requirements set forth in Section 2.6.1 but otherwise in
            accordance with the terms and conditions of this Credit Agreement,
            the Swing Line Lender may, at the Borrower's request and in the
            Swing Line Lender's sole discretion and without conferring with the
            Lenders, make Revolving Credit Loans (each a "Swing Line Loan") to
            the Borrower in an amount requested by the Borrower provided, that
            (a) each such Swing Line Loan shall be in a minimum aggregate amount
            of $500,000 or an integral multiple of $100,000 in excess thereof,
            and (b) the aggregate outstanding amount of all Swing Line Loans
            made by the Swing Line Lender pursuant to this Section 2.6.2 shall
            not exceed $10,000,000 at any one time. The Borrower hereby requests
            and authorizes the Swing Line Lender to make from time to time such
            Swing Line Loans as may be so requested. The Borrower acknowledges
            and agrees that the making of such Swing Line Loans shall, in each
            case, be subject in all respects to the provisions of this Credit
            Agreement as if they were Swing Line Loans covered by a Loan Request
            including, without limitation, the limitations set forth in Section
            2.1 and the requirements that the applicable provisions of Section
            11 (in the case of Swing Line Loans made on the Closing Date) and
            Section 12 be satisfied. All actions taken by the Swing Line Lender
            pursuant to the provisions of this Section 2.6.2 shall be conclusive
            and binding on the Borrower and the Lenders absent the Swing Line
            Lender's gross negligence or willful misconduct.

            2.7. CONVERSION OPTIONS.

<PAGE>

                  2.7.1. CONVERSION TO DIFFERENT TYPE OF REVOLVING CREDIT LOAN.
            The Borrower may elect from time to time to convert any outstanding
            Revolving Credit Loan to a Revolving Credit Loan of another Type,
            provided that (a) with respect to any such conversion of a
            Eurodollar Rate Loan to a Prime Rate Loan, the Borrower shall give
            the Administrative Agent at least one (1) Business Day prior written
            notice of such election; (b) with respect to any such conversion of
            a Prime Rate Loan to a Eurodollar Rate Loan, the Borrower shall give
            the Administrative Agent at least three (3) Eurodollar Business Days
            prior written notice of such election; (c) with respect to any such
            conversion of a Eurodollar Rate Loan into a Prime Rate Loan, such
            conversion shall only be made on the last day of the Interest Period
            with respect thereto and (d) no Revolving Credit Loan may be
            converted into a Eurodollar Rate Loan when any Default or Event of
            Default has occurred and is continuing. On the date on which such
            conversion is being made each Lender shall take such action as is
            necessary to transfer its Commitment Percentage of such Revolving
            Credit Loans to its Domestic Lending Office or its Eurodollar
            Lending Office, as the case may be. All or any part of outstanding
            Revolving Credit Loans of any Type may be converted into a Revolving
            Credit Loan of another Type as provided herein, provided that any
            partial conversion to a Eurodollar Rate Loan shall be in an
            aggregate principal amount of $1,000,000 or an integral multiple of
            $500,000 in excess thereof, and any partial conversion to a Prime
            Rate Loan shall be in an aggregate principal amount of $500,000 or
            an integral multiple of $100,000 in excess thereof. Each Conversion
            Request relating to the conversion of a Revolving Credit Loan to a
            Eurodollar Rate Loan shall be irrevocable by the Borrower.

                  2.7.2. CONTINUATION OF TYPE OF REVOLVING CREDIT LOAN. Any
            Revolving Credit Loan of any Type may be continued as a Revolving
            Credit Loan of the same Type upon the expiration of an Interest
            Period with respect thereto by compliance by the Borrower with the
            notice provisions contained in Section 2.7.1; provided that no
            Eurodollar Rate Loan may be continued as such when any Default or
            Event of Default has occurred and is continuing, but shall be
            automatically converted to a Prime Rate Loan on the last day of the
            first Interest Period relating thereto ending during the continuance
            of any Default or Event of Default of which officers of the
            Administrative Agent active upon the Borrower's account have actual
            knowledge. In the event that the Borrower fails to provide any such
            notice with respect to the continuation of any Eurodollar Rate Loan
            as such, then such Eurodollar Rate Loan shall be automatically
            converted to a Prime Rate Loan on the last day of the first Interest
            Period relating thereto. The Administrative Agent shall notify the
            Lenders promptly when any such automatic conversion contemplated by
            this Section 2.7 is scheduled to occur.

                  2.7.3. EURODOLLAR RATE LOANS. Any conversion to or from
            Eurodollar Rate Loans shall be in such amounts and be made pursuant
            to such elections so that, after giving effect thereto, the
            aggregate principal amount of all Eurodollar Rate Loans having the
            same Interest Period shall not be less than $1,000,000 or an
            integral multiple of $500,000 in excess thereof. No more than

<PAGE>

            ten (10) Eurodollar Rate Loans having different Interest Periods may
            be outstanding at any time.

                  2.7.4. APPLICABILITY OF CONVERSION AND CONTINUATION
            PROVISIONS. Notwithstanding anything to the contrary herein
            contained, the provisions of this Section 2.7 shall not apply to
            Swing Line Loans.

            2.8. FUNDS FOR REVOLVING CREDIT LOAN.

                  2.8.1. FUNDING PROCEDURES. Not later than 3:00 p.m. (Boston
            time) on the proposed Drawdown Date of any Revolving Credit Loans,
            each of the Lenders will make available to the Administrative Agent,
            at the Administrative Agent's Office, in immediately available
            funds, the amount of such Lender's Commitment Percentage of the
            amount of the requested Revolving Credit Loans. Upon receipt from
            each Lender of such amount, and upon receipt of the documents
            required by Sections 11 and 12 and the satisfaction of the other
            conditions set forth therein, to the extent applicable, the
            Administrative Agent will make available to the Borrower the
            aggregate amount of such Revolving Credit Loans made available to
            the Administrative Agent by the Lenders. The failure or refusal of
            any Lender to make available to the Administrative Agent at the
            aforesaid time and place on any Drawdown Date the amount of its
            Commitment Percentage of the requested Revolving Credit Loans shall
            not relieve any other Lender from its several obligation hereunder
            to make available to the Administrative Agent the amount of such
            other Lender's Commitment Percentage of any requested Revolving
            Credit Loans.

                  2.8.2. ADVANCES BY ADMINISTRATIVE AGENT. The Administrative
            Agent may, unless notified to the contrary by any Lender prior to a
            Drawdown Date, assume that such Lender has made available to the
            Administrative Agent on such Drawdown Date the amount of such
            Lender's Commitment Percentage of the Revolving Credit Loans to be
            made on such Drawdown Date, and the Administrative Agent may, in
            reliance upon such assumption, make available to the Borrower a
            corresponding amount. If any Lender makes available to the
            Administrative Agent such amount on a date after such Drawdown Date,
            such Lender shall pay to the Administrative Agent on demand an
            amount equal to the product of (a) the average computed for the
            period referred to in clause (c) below, of the weighted average
            interest rate paid by the Administrative Agent for federal funds
            acquired by the Administrative Agent during each day included in
            such period, times (b) the amount of such Lender's Commitment
            Percentage of such Revolving Credit Loans, times (c) a fraction, the
            numerator of which is the number of days that elapse from and
            including such Drawdown Date to the date on which the amount of such
            Lender's Commitment Percentage of such Revolving Credit Loans shall
            become immediately available to the Administrative Agent, and the
            denominator of which is 360. A statement of the Administrative Agent
            submitted to such Lender with respect to any amounts owing under
            this paragraph shall be prima facie evidence (absent manifest error)
            of the amount due and owing to the Administrative Agent by such
            Lender. If the amount of such Lender's Commitment Percentage of such

<PAGE>

            Revolving Credit Loans is not made available to the Administrative
            Agent by such Lender within three (3) Business Days following such
            Drawdown Date, the Administrative Agent shall be entitled to recover
            such amount from the Borrower on demand, with interest thereon at
            the rate per annum applicable to the Revolving Credit Loans made on
            such Drawdown Date.

            2.9. SETTLEMENTS.

                  2.9.1. GENERAL. On each Settlement Date, the Administrative
            Agent shall, not later than 1:00 p.m. (Boston time), give
            telephonic, facsimile or electronic mail notice (a) to the Lenders
            and the Borrower of the respective outstanding amount of Revolving
            Credit Loans made by the Administrative Agent on behalf of the
            Lenders or in the form of Swing Line Loans from the immediately
            preceding Settlement Date through the close of business on the prior
            day and the amount of any Eurodollar Rate Loans to be made
            (following the giving of notice pursuant to Section 2.6.1(b)) on
            such date pursuant to a Loan Request and (b) to the Lenders of the
            amount (a "Settlement Amount") that each Lender (a "Settling
            Lender") shall pay to effect a Settlement of any Revolving Credit
            Loan. A statement of the Administrative Agent submitted to the
            Lenders and the Borrower or to the Lenders with respect to any
            amounts owing under this Section 2.9 shall be prima facie evidence
            (absent manifest error) of the amount due and owing. Each Settling
            Lender shall, not later than 3:00 p.m. (Boston time) on such
            Settlement Date, effect a wire transfer of immediately available
            funds to the Administrative Agent in the amount of the Settlement
            Amount for such Settling Lender. All funds advanced by any Lender as
            a Settling Lender pursuant to this Section 2.9 shall for all
            purposes be treated as a Revolving Credit Loan made by such Settling
            Lender to the Borrower and all funds received by any Lender pursuant
            to this Section 2.9 shall for all purposes be treated as repayment
            of amounts owed with respect to Revolving Credit Loans made by such
            Lender. In the event that any bankruptcy, reorganization,
            liquidation, receivership or similar cases or proceedings in which
            the Borrower is a debtor prevent a Settling Lender from making any
            Revolving Credit Loan to effect a Settlement as contemplated hereby,
            such Settling Lender will make such dispositions and arrangements
            with the other Lenders with respect to such Revolving Credit Loans,
            either by way of purchase of participations, distribution, pro tanto
            assignment of claims, subrogation or otherwise as shall result in
            each Lender's share of the outstanding Revolving Credit Loans being
            equal, as nearly as may be, to such Lender's Commitment Percentage
            of the outstanding amount of the Revolving Credit Loans.

                  2.9.2. FAILURE TO MAKE FUNDS AVAILABLE. The Administrative
            Agent may, unless notified to the contrary by any Settling Lender
            prior to a Settlement Date, assume that such Settling Lender has
            made or will make available to the

<PAGE>

            Administrative Agent on such Settlement Date the amount of such
            Settling Lender's Settlement Amount, and the Administrative Agent
            may, in reliance upon such assumption, make available to the
            Borrower a corresponding amount. If any Settling Lender makes
            available to the Administrative Agent such amount on a date after
            such Settlement Date, such Settling Lender shall pay to the
            Administrative Agent on demand an amount equal to the product of (a)
            the average computed for the period referred to in clause (c) below,
            of the weighted average interest rate paid by the Administrative
            Agent for federal funds acquired by the Administrative Agent during
            each day included in such period, times (b) the amount of such
            Settlement Amount, times (c) a fraction, the numerator of which is
            the number of days that elapse from and including such Settlement
            Date to the date on which the amount of such Settlement Amount shall
            become immediately available to the Administrative Agent, and the
            denominator of which is 360. A statement of the Administrative Agent
            submitted to such Settling Lender with respect to any amounts owing
            under this Section 2.9.2 shall be prima facie evidence (absent
            manifest error) of the amount due and owing to the Administrative
            Agent by such Settling Lender. If such Settling Lender's Settlement
            Amount is not made available to the Administrative Agent by such
            Settling Lender within three (3) Business Days following such
            Settlement Date, the Administrative Agent shall be entitled to
            recover such amount from the Borrower on demand, with interest
            thereon at the rate per annum applicable to the Revolving Credit
            Loans as of such Settlement Date.

                  2.9.3. NO EFFECT ON OTHER LENDERS. The failure or refusal of
            any Settling Lender to make available to the Administrative Agent at
            the aforesaid time and place on any Settlement Date the amount of
            such Settling Lender's Settlement Amount shall not (a) relieve any
            other Settling Lender from its several obligations hereunder to make
            available to the Administrative Agent the amount of such other
            Settling Lender's Settlement Amount or (b) impose upon any Lender,
            other than the Settling Lender so failing or refusing, any liability
            with respect to such failure or refusal or otherwise increase the
            Commitment of such other Lender.

      3. REPAYMENT OF THE REVOLVING CREDIT LOANS.

            3.1. MATURITY. The Borrower promises to pay on the Revolving Credit
      Loan Maturity Date, and there shall become absolutely due and payable on
      the Revolving Credit Loan Maturity Date, all of the Revolving Credit Loans
      outstanding on such date, together with any and all accrued and unpaid
      interest thereon. Without limiting the foregoing, the Borrower promises to
      pay to the Administrative Agent for its own account, and there shall
      become absolutely due and payable, the outstanding principal amount of
      each Swing Line Loan made to the Borrower on the earlier of the Settlement
      Date with respect thereto and the Revolving Credit Loan Maturity Date.

            3.2. MANDATORY REPAYMENTS OF REVOLVING CREDIT LOANS.

            (a) If at any time the sum of the outstanding amount of the
      Revolving Credit Loans (including the Swing Line Loans), the Maximum
      Drawing Amount and all Unpaid Reimbursement Obligations exceeds the Total
      Commitment at such time, then the Borrower shall immediately pay the
      amount of such excess to the Administrative Agent for the respective
      accounts of the Lenders for application: first,

<PAGE>

      to the Swing Line Loans; second, to any Unpaid Reimbursement Obligations;
      third, to the Revolving Credit Loans; and fourth, to provide to the
      Administrative Agent cash collateral for Reimbursement Obligations as
      contemplated by Section 4.2(b) and (c).

            (b) During the period from November 1st of each calendar year from
      the Closing Date until the Revolving Credit Loan Maturity Date through
      June 30th of each calendar year during such period, the Borrower shall pay
      to the Administrative Agent such amounts as are necessary to reduce the
      sum of the outstanding amount of the Revolving Credit Loans (including
      Swing Line Loans) to no more than $25,000,000 for a period of at least
      thirty (30) consecutive days during such period.

      Each payment of any Unpaid Reimbursement Obligations or prepayment of
      Revolving Credit Loans (other than Swing Line Loans) shall be allocated
      among the Lenders, in proportion, as nearly as practicable, to each
      Reimbursement Obligation or (as the case may be) the respective unpaid
      principal amount of each Lender's Revolving Credit Note, with adjustments
      to the extent practicable to equalize any prior payments or repayments not
      exactly in proportion. Each payment or prepayment of Swing Line Loans
      shall be allocated to the Swing Line Lender.

            3.3. OPTIONAL REPAYMENTS OF REVOLVING CREDIT LOANS. The Borrower
      shall have the right, at its election, to repay the outstanding amount of
      the Revolving Credit Loans and Fixed Rate Loans, as a whole or in part, at
      any time without penalty or premium, provided that any full or partial
      prepayment of the outstanding amount of any Eurodollar Rate Loans pursuant
      to this Section 3.3 may be made only on the last day of the Interest
      Period relating thereto unless breakage costs described in Section 5.10 in
      connection therewith are paid by the Borrower. The Borrower shall give the
      Administrative Agent, no later than 11:00 a.m., Boston time, on such day
      written notice of any proposed prepayment pursuant to this Section 3.3 of
      Prime Rate Loans, and no later than 12:00 noon, Boston time, three (3)
      Eurodollar Business Days notice of any proposed prepayment pursuant to
      this Section 3.3 of Fixed Rate Loans or Eurodollar Rate Loans, in each
      case specifying the proposed date of prepayment of Revolving Credit Loans
      and the principal amount to be prepaid. Each such partial prepayment of
      the Revolving Credit Loans shall be in a minimum aggregate amount of
      $1,000,000 or an integral multiple of $500,000 in excess thereof, shall be
      accompanied by the payment of accrued interest on the principal prepaid to
      the date of prepayment and shall be applied, in the absence of instruction
      by the Borrower, first to the principal of Fixed Rate Loans, second to the
      principal of Prime Rate Loans and third to the principal of Eurodollar
      Rate Loans. Each partial prepayment shall be allocated among the Lenders,
      in proportion, as nearly as practicable, to the respective unpaid
      principal amount of each Lender's Revolving Credit Note, with adjustments
      to the extent practicable to equalize any prior repayments not exactly in
      proportion.

      4. LETTERS OF CREDIT.

            4.1. LETTER OF CREDIT COMMITMENTS.

<PAGE>

                  4.1.1. COMMITMENT TO ISSUE LETTERS OF CREDIT. Subject to the
            terms and conditions hereof and the execution and delivery by the
            Borrower of a letter of credit application on the Issuing Lender's
            customary form (a "Letter of Credit Application"), the Issuing
            Lender on behalf of the Lenders and in reliance upon the agreement
            of the Lenders set forth in Section 4.1.4 and upon the
            representations and warranties of the Borrower contained herein,
            agrees, in its individual capacity, to issue, extend, amend and
            renew for the account of the Borrower one or more standby or
            documentary letters of credit (individually, a "Letter of Credit"),
            in such form as may be requested from time to time by the Borrower
            and agreed to by the Issuing Lender; provided, however, that, after
            giving effect to such request, (a) with respect to all Letters of
            Credit, the sum of the aggregate Maximum Drawing Amount and all
            Unpaid Reimbursement Obligations shall not exceed $80,000,000 at any
            one time, (b) with respect to standby Letters of Credit, the sum of
            the aggregate Maximum Drawing Amount and all Unpaid Reimbursement
            Obligations shall not exceed $40,000,000 at any one time, and (c)
            the sum of (i) the Maximum Drawing Amount on all Letters of Credit,
            (ii) all Unpaid Reimbursement Obligations, and (iii) the amount of
            all Revolving Credit Loans (including Swing Line Loans) outstanding
            shall not exceed the Total Commitment at such time. As of the
            Closing Date, the letters of credit existing for the account of the
            Borrower under that certain Revolving Credit Agreement by and among
            the Borrower, Fleet, the Lenders and the Administrative Agent dated
            as of February 27, 2001, as well as the letter of credit for the
            account of the Borrower and naming Sara Lee Corporation as
            beneficiary, set forth on Schedule 4.1.1 attached hereto, shall
            become a Letter of Credit under this Credit Agreement for all
            purposes.

                  4.1.2. LETTER OF CREDIT APPLICATIONS. Each Letter of Credit
            Application shall be completed to the satisfaction of the Issuing
            Lender. In the event that any provision of any Letter of Credit
            Application shall be inconsistent with any provision of this Credit
            Agreement, then the provisions of this Credit Agreement shall, to
            the extent of any such inconsistency, govern.

                  4.1.3. TERMS OF LETTERS OF CREDIT. Each Letter of Credit
            issued, extended, amended or renewed hereunder shall, among other
            things, (a) provide for the payment of drafts for honor thereunder
            when presented in accordance with the terms thereof and when
            accompanied by the documents described therein, and (b) have an
            expiry date no later than the date which is ten (10) days (or, if
            the Letter of Credit is confirmed by a confirmer or otherwise
            provides for one or more nominated persons, thirty (30) days) prior
            to the Revolving Credit Loan Maturity Date. Each Letter of Credit so
            issued, extended, amended or renewed shall be subject to the Uniform
            Customs or, in the case of a standby Letter of Credit, either the
            Uniform Customs or the International Standby Practices.

                  4.1.4. REIMBURSEMENT OBLIGATIONS OF LENDERS. Each Lender
            severally agrees that it shall be absolutely liable, without regard
            to the occurrence of any Default or Event of Default or any other
            condition precedent whatsoever, to the extent of such Lender's
            Commitment Percentage, to reimburse the Issuing

<PAGE>

            Lender on demand for the amount of each draft paid by the Issuing
            Lender under each Letter of Credit to the extent that such amount is
            not reimbursed by the Borrower pursuant to Section 4.2 (such
            agreement for a Lender being called herein the "Letter of Credit
            Participation" of such Lender).

                  4.1.5. PARTICIPATIONS OF LENDERS. Each such payment made by a
            Lender shall be treated as the purchase by such Lender of a
            participating interest in the Borrower's Reimbursement Obligation
            under Section 4.2 in an amount equal to such payment. Each Lender
            shall share in accordance with its participating interest in any
            interest which accrues pursuant to Section 4.2.

            4.2. REIMBURSEMENT OBLIGATIONS. (a) In order to induce the Issuing
      Lender to issue, extend, amend and renew each Letter of Credit and the
      Lenders to participate therein, the Borrower hereby agrees to reimburse or
      pay to the Issuing Lender, for the account of the Issuing Lender or (as
      the case may be) the Lenders, with respect to each Letter of Credit
      issued, extended, amended or renewed by the Issuing Lender hereunder
      (including without limitation those issued for its Subsidiaries),

                  (i) except as otherwise expressly provided in Section 4.2(b)
            and (c), on each date that any draft presented under such Letter of
            Credit is honored by the Issuing Lender, or the Issuing Lender
            otherwise makes a payment with respect thereto, (A) the amount paid
            by the Issuing Lender under or with respect to such Letter of
            Credit, and (B) the amount of any taxes and customary fees and
            expenses whatsoever incurred by the Issuing Lender in connection
            with any payment made by the Issuing Lender under, or with respect
            to, such Letter of Credit,

                  (ii) upon the reduction (but not termination) of the Total
            Commitment to an amount less than the Maximum Drawing Amount, an
            amount equal to such difference, which amount shall be held by the
            Administrative Agent for the benefit of the Lenders, the Issuing
            Lender and the Administrative Agent as cash collateral (to be held
            in an interest bearing account administered by the Administrative
            Agent) for all Reimbursement Obligations, and

                  (iii) upon the termination of the Total Commitment, or the
            acceleration of the Reimbursement Obligations with respect to all
            Letters of Credit in accordance with Section 13, an amount equal to
            the then Maximum Drawing Amount on all Letters of Credit, which
            amount shall be held by the Administrative Agent for the benefit of
            the Lenders, the Issuing Lender and the Administrative Agent as cash
            collateral (to be held in an interest bearing account administered
            by the Administrative Agent) for all Reimbursement Obligations.

      Each such payment shall be made to the Issuing Lender at the Issuing
      Lender's office designated on Schedule 1 hereto in immediately available
      funds. Interest on any and all amounts remaining unpaid by the Borrower
      under this Section 4.2 at any time from the date such amounts become due
      and payable (whether as stated in this Section 4.2,

<PAGE>

      by acceleration or otherwise) until payment in full (whether before or
      after judgment) shall be payable to the Issuing Lender on demand at the
      rate specified in Section 5.11 for overdue principal on the Revolving
      Credit Loans.

      (b) If the Borrower requests a Letter of Credit under this Credit
      Agreement be issued for the account of a Subsidiary, the Borrower and such
      Subsidiary shall be jointly and severally liable for such Letter of Credit
      and the Borrower shall require such Subsidiary (other than the Guarantor)
      to (i) enter into a reimbursement agreement in the form attached hereto as
      Exhibit F and (ii) provide evidence satisfactory to the Administrative
      Agent that all corporate (or other) action necessary for the valid
      execution, delivery and performance by such Subsidiary of such
      reimbursement agreement shall have been duly and effectively taken.

            4.3. LETTER OF CREDIT PAYMENTS. If any draft shall be presented or
      demand for payment made, and, with respect to documentary Letters of
      Credit with discrepancies between the draft presented and the requirements
      of the Letter of Credit, if the approval of the Borrower is required under
      applicable law to make payment and the Borrower has approved payment of
      such non-conforming draft, then the Issuing Lender shall notify the
      Borrower of the date and amount of the draft presented or demand for
      payment and of the date and time when it expects to pay such draft or
      honor such demand for payment. If the Borrower fails to reimburse the
      Issuing Lender as provided in Section 4.2 by the date that such draft is
      paid or other payment is made by the Issuing Lender, the Administrative
      Agent, on behalf of, and at the request of, the Issuing Lender, may at any
      time thereafter notify the Lenders of the amount of any such Unpaid
      Reimbursement Obligation. No later than 3:00 p.m. (Boston time) on the
      Business Day next following the receipt of such notice, each Lender shall
      make available to the Administrative Agent, at the Administrative Agent's
      Office for distribution to the Issuing Lender, in immediately available
      funds, such Lender's Commitment Percentage of such Unpaid Reimbursement
      Obligation, together with an amount equal to the product of (a) the
      average, computed for the period referred to in clause (c) below, of the
      weighted average interest rate paid by the Issuing Lender for federal
      funds acquired by the Issuing Lender during each day included in such
      period, times (b) the amount equal to such Lender's Commitment Percentage
      of such Unpaid Reimbursement Obligation, times (c) a fraction, the
      numerator of which is the number of days that elapse from and including
      the date the Issuing Lender paid the draft presented for honor or
      otherwise made payment to the date on which such Lender's Commitment
      Percentage of such Unpaid Reimbursement Obligation shall become
      immediately available to the Issuing Lender, and the denominator of which
      is 360. The responsibility of the Issuing Lender to the Borrower and the
      Lenders shall be only to determine that the documents (including each
      draft) delivered under each Letter of Credit in connection with such
      presentment shall be in conformity in all material respects with such
      Letter of Credit and to perform standard operating functions related to
      the administration of Letters of Credit.

            4.4. OBLIGATIONS ABSOLUTE. The Borrower's obligations under this
      Section 4 shall be absolute and unconditional under any and all
      circumstances and irrespective of the occurrence of any Default or Event
      of Default or any condition precedent whatsoever or any setoff,
      counterclaim or defense to payment which the Borrower may

<PAGE>

      have or have had against the Issuing Lender, any Lender or any beneficiary
      of a Letter of Credit. The Borrower further agrees with the Issuing
      Lender, the Administrative Agent and the Lenders that the Issuing Lender,
      the Administrative Agent and the Lenders shall not be responsible for, and
      the Borrower's Reimbursement Obligations under Section 4.2 shall not be
      affected by, among other things, the validity or genuineness of documents
      or of any endorsements thereon even if such documents should in fact prove
      to be in any or all respects invalid, fraudulent or forged, or any dispute
      between or among the Borrower, the beneficiary of any Letter of Credit or
      any financing institution or other party to which any Letter of Credit may
      be transferred or any claims or defenses whatsoever of the Borrower
      against the beneficiary of any Letter of Credit or any such transferee,
      provided that the Borrower shall not be responsible for, and the
      Borrower's Reimbursement Obligations shall not include, amounts or
      liabilities arising solely from the gross negligence or willful misconduct
      of the Issuing Lender in determining whether a request presented under any
      Letter of Credit complied with the terms of such Letter of Credit. The
      Issuing Lender, the Administrative Agent and the Lenders shall not be
      liable for any error, omission, interruption or delay in transmission,
      dispatch or delivery of any message or advice, however transmitted, in
      connection with any Letter of Credit. The Borrower agrees that any action
      taken or omitted by the Issuing Lender, the Administrative Agent or any
      Lender under or in connection with each Letter of Credit and the related
      drafts and documents, if done in good faith, shall be binding upon the
      Borrower and shall not result in any liability on the part of the Issuing
      Lender, the Administrative Agent or any Lender to the Borrower.

            4.5. RELIANCE BY ISSUER. To the extent not inconsistent with Section
      4.4, the Issuing Lender shall be entitled to rely, and shall be fully
      protected in relying upon, any Letter of Credit, draft, writing,
      resolution, notice, consent, certificate, affidavit, letter, cablegram,
      telegram, telecopy, telex or teletype message, statement, order or other
      document believed by it to be genuine and correct and to have been signed,
      sent or made by the proper Person or Persons and upon advice and
      statements of legal counsel, independent accountants and other experts
      selected by the Issuing Lender. The Issuing Lender shall be fully
      justified in failing or refusing to take any action under this Credit
      Agreement unless it shall first have received such advice or concurrence
      of the Required Lenders as it reasonably deems appropriate or it shall
      first be indemnified to its reasonable satisfaction by the Lenders against
      any and all liability and expense which may be incurred by it by reason of
      taking or continuing to take any such action. The Issuing Lender shall in
      all cases be fully protected in acting, or in refraining from acting,
      under this Credit Agreement in accordance with a request of the Required
      Lenders, and such request and any action taken or failure to act pursuant
      thereto shall be binding upon the Lenders and all future holders of the
      Revolving Credit Notes or of a Letter of Credit Participation.

            4.6. LETTER OF CREDIT FEE. The Borrower shall pay a fee (in each
      case, a "Letter of Credit Fee") to the Administrative Agent (a) quarterly
      in arrears on the first day of each fiscal quarter of the Borrower for the
      immediately preceding fiscal quarter of the Borrower, in respect of each
      standby Letter of Credit, an amount equal to the Applicable Margin per
      annum with respect to Standby Letter of Credit Fees multiplied by the
      result of (i) the average daily face amount of such standby Letter of
      Credit

<PAGE>

      during such period, multiplied by the number of days such standby Letter
      of Credit is outstanding and divided by (ii) three hundred and sixty (360)
      (a "Standby Letter of Credit Fee"), and (b) quarterly in arrears on the
      first day of each fiscal quarter of the Borrower for the immediately
      preceding fiscal quarter of the Borrower, in respect of each documentary
      Letter of Credit, an amount equal to the Applicable Margin per annum with
      respect to documentary Letter of Credit Fees multiplied by the result of
      (i) the average daily face amount of such documentary Letter of Credit
      during such period, multiplied by the number of days such documentary
      Letter of Credit is outstanding, divided by (B) three hundred and sixty
      (360) (a "Documentary Letter of Credit Fee"), in each case which Letter of
      Credit Fee shall be for the accounts of the Lenders in accordance with
      their respective Commitment Percentages. In respect of each Letter of
      Credit, the Borrower shall also pay to the Issuing Lender for the Issuing
      Lender's own account, at such other time or times as such charges are
      customarily made by the Issuing Lender, the Issuing Lender's customary
      fronting, issuance, amendment, negotiation or document examination and
      other administrative fees as in effect from time to time.

      5. CERTAIN GENERAL PROVISIONS.

            5.1. CLOSING AND ARRANGEMENT FEES. The Borrower agrees to pay to the
      Administrative Agent for the accounts of the Lenders on the Closing Date a
      closing fee (the "Closing Fee") as set forth in the Fee Letter. The
      Borrower agrees to pay to the Administrative Agent for the account of the
      Arranger, on the Closing Date an arrangement fee (the "Arrangement Fee")
      as set forth in the Fee Letter.

            5.2. ADMINISTRATIVE AGENT'S FEE. The Borrower shall pay to the
      Administrative Agent an Administrative Agent's fee as set forth in the Fee
      Letter.

            5.3. FUNDS FOR PAYMENTS.

                  5.3.1. PAYMENTS TO ADMINISTRATIVE AGENT. All payments of
            principal, interest, Reimbursement Obligations, Fees and any other
            amounts due hereunder or under any of the other Loan Documents shall
            be made on the due date thereof to the Administrative Agent in
            Dollars, for the respective accounts of the Lenders and the
            Administrative Agent, at the Administrative Agent's Office or at
            such other place that the Administrative Agent may from time to time
            designate, in each case at or about 3:00 p.m. (Boston,
            Massachusetts, time or other local time at the place of payment) and
            in immediately available funds.

                  5.3.2. NO OFFSET, ETC. All payments by the Borrower hereunder
            and under any of the other Loan Documents shall be made without
            recoupment, setoff or counterclaim and free and clear of and without
            deduction for any taxes, levies, imposts, duties, charges, fees,
            deductions, withholdings, compulsory loans, restrictions or
            conditions of any nature now or hereafter imposed or levied by any
            jurisdiction or any political subdivision thereof or taxing or other
            authority therein unless the Borrower is compelled by law to make
            such deduction or withholding. If any such obligation is imposed
            upon the Borrower with respect to any amount payable by it hereunder
            or under any of the other

<PAGE>

            Loan Documents, the Borrower will pay to the Administrative Agent,
            for the account of the Lenders or (as the case may be) the
            Administrative Agent, on the date on which such amount is due and
            payable hereunder or under such other Loan Document, such additional
            amount in Dollars as shall be necessary to enable the Lenders or the
            Administrative Agent to receive the same net amount which the
            Lenders or the Administrative Agent would have received on such due
            date had no such obligation been imposed upon the Borrower. The
            Borrower will deliver promptly to the Administrative Agent
            certificates or other valid vouchers for all taxes or other charges
            deducted from or paid with respect to payments made by the Borrower
            hereunder or under such other Loan Document.

            5.4. COMPUTATIONS. All computations of interest on (a) the Loans
      (other than Eurodollar Rate Loans) and of Fees shall, unless otherwise
      expressly provided herein, be based on a 365/366-day year and (b)
      Eurodollar Rate Loans shall be based on a 360-day year and, in each case,
      paid for the actual number of days elapsed. Except as otherwise provided
      in the definition of the term "Interest Period" with respect to Eurodollar
      Rate Loans, whenever a payment hereunder or under any of the other Loan
      Documents becomes due on a day that is not a Business Day, the due date
      for such payment shall be extended to the next succeeding Business Day,
      and interest and Fees shall accrue during such extension. The outstanding
      amount of the Loans as reflected on the Revolving Credit Note Records from
      time to time shall be considered correct and binding on the Borrower
      unless within five (5) Business Days after receipt of any notice by the
      Administrative Agent or any of the Lenders of such outstanding amount, the
      Administrative Agent or such Lender shall notify the Borrower to the
      contrary.

            5.5. INABILITY TO DETERMINE EURODOLLAR RATE. In the event, prior to
      the commencement of any Interest Period relating to any Eurodollar Rate
      Loan, the Administrative Agent shall determine or be notified by the
      Required Lenders that adequate and reasonable methods do not exist for
      ascertaining the Eurodollar Rate that would otherwise determine the rate
      of interest to be applicable to any Eurodollar Rate Loan during any
      Interest Period, the Administrative Agent shall forthwith give notice of
      such determination (which shall be conclusive and binding on the Borrower
      and the Lenders) to the Borrower and the Lenders. In such event (a) any
      Loan Request or Conversion Request with respect to Eurodollar Rate Loans
      shall be automatically withdrawn and shall be deemed a request for Prime
      Rate Loans, (b) each Eurodollar Rate Loan will automatically, on the last
      day of the then current Interest Period relating thereto, become a Prime
      Rate Loan, and (c) the obligations of the Lenders to make Eurodollar Rate
      Loans shall be suspended until the Administrative Agent or the Required
      Lenders determine that the circumstances giving rise to such suspension no
      longer exist, whereupon the Administrative Agent or, as the case may be,
      the Administrative Agent upon the instruction of the Required Lenders,
      shall so notify the Borrower and the Lenders.

            5.6. ILLEGALITY. Notwithstanding any other provisions herein, if any
      present or future law, regulation, treaty or directive or in the
      interpretation or application thereof shall make it unlawful for any
      Lender to make or maintain Eurodollar Rate Loans, such Lender shall
      forthwith give notice of such circumstances to the Borrower and the

<PAGE>

      other Lenders and thereupon (a) the commitment of such Lender to make
      Eurodollar Rate Loans or convert Prime Rate Loans to Eurodollar Rate Loans
      shall forthwith be suspended and (b) such Lender's Revolving Credit Loans
      then outstanding as Eurodollar Rate Loans, if any, shall be converted
      automatically to Prime Rate Loans on the last day of each Interest Period
      applicable to such Eurodollar Rate Loans or within such earlier period as
      may be required by law. The Borrower hereby agrees promptly to pay the
      Administrative Agent for the account of such Lender, upon demand by such
      Lender, any additional amounts necessary to compensate such Lender for any
      costs incurred by such Lender in making any conversion in accordance with
      this Section 5.6, including any interest or fees payable by such Lender to
      lenders of funds obtained by it in order to make or maintain its
      Eurodollar Rate Loans hereunder.

            5.7. ADDITIONAL COSTS, ETC. If any present or future applicable law,
      which expression, as used herein, includes statutes, rules and regulations
      thereunder and interpretations thereof by any competent court or by any
      governmental or other regulatory body or official charged with the
      administration or the interpretation thereof and requests, directives,
      instructions and notices at any time or from time to time hereafter made
      upon or otherwise issued to any Lender or the Administrative Agent by any
      central bank or other fiscal, monetary or other authority (whether or not
      having the force of law), shall:

                  (a) subject any Lender or the Administrative Agent to any tax,
            levy, impost, duty, charge, fee, deduction or withholding of any
            nature with respect to this Credit Agreement, the other Loan
            Documents, any Letters of Credit, such Lender's Commitment or the
            Loans (other than taxes based upon or measured by the income or
            profits of such Lender or the Administrative Agent), or

                  (b) materially change the basis of taxation (except for
            changes in taxes on income or profits) of payments to any Lender of
            the principal of or the interest on any Loans or any other amounts
            payable to any Lender or the Administrative Agent under this Credit
            Agreement or any of the other Loan Documents, or

                  (c) impose or increase or render applicable (other than to the
            extent specifically provided for elsewhere in this Credit Agreement)
            any special deposit, reserve, assessment, liquidity, capital
            adequacy or other similar requirements (whether or not having the
            force of law) against assets held by, or deposits in or for the
            account of, or loans by, or letters of credit issued by, or
            commitments of an office of any Lender, or

                  (d) impose on any Lender or the Administrative Agent any other
            conditions or requirements with respect to this Credit Agreement,
            the other Loan Documents, any Letters of Credit, the Loans, such
            Lender's Commitment, or any class of loans, letters of credit or
            commitments of which any of the Loans or such Lender's Commitment
            forms a part, and the result of any of the foregoing is

<PAGE>

                        (i) to increase the cost to any Lender of making,
                  funding, issuing, renewing, extending or maintaining any of
                  the Loans or such Lender's Commitment or any Letter of Credit,
                  or

                        (ii) to reduce the amount of principal, interest,
                  Reimbursement Obligation or other amount payable to such
                  Lender or the Administrative Agent hereunder on account of
                  such Lender's Commitment, any Letter of Credit or any of the
                  Loans, or

                        (iii) to require such Lender or the Administrative Agent
                  to make any payment or to forego any interest or Reimbursement
                  Obligation or other sum payable hereunder, the amount of which
                  payment or foregone interest or Reimbursement Obligation or
                  other sum is calculated by reference to the gross amount of
                  any sum receivable or deemed received by such Lender or the
                  Administrative Agent from the Borrower hereunder,

      then, and in each such case, the Borrower will, upon demand made by such
      Lender or (as the case may be) the Administrative Agent at any time and
      from time to time and as often as the occasion therefor may arise, pay to
      such Lender or the Administrative Agent such additional amounts as will be
      sufficient to compensate such Lender or the Administrative Agent for such
      additional cost, reduction, payment or foregone interest or Reimbursement
      Obligation or other sum.

            5.8. CAPITAL ADEQUACY. If after the date hereof any Lender or the
      Administrative Agent determines that (a) the adoption of or change in any
      law, governmental rule, regulation, policy, guideline or directive
      (whether or not having the force of law) regarding capital requirements
      for Lenders or Lender holding companies or any change in the
      interpretation or application thereof by a Governmental Authority with
      appropriate jurisdiction, or (b) compliance by such Lender or the
      Administrative Agent or any corporation controlling such Lender or the
      Administrative Agent with any law, governmental rule, regulation, policy,
      guideline or directive (whether or not having the force of law) of any
      such entity regarding capital adequacy, has the effect of reducing the
      return on such Lender's or the Administrative Agent's commitment with
      respect to any Loans to a level below that which such Lender or the
      Administrative Agent could have achieved but for such adoption, change or
      compliance (taking into consideration such Lender's or the Administrative
      Agent's then existing policies with respect to capital adequacy and
      assuming full utilization of such entity's capital) by any amount deemed
      by such Lender or (as the case may be) the Administrative Agent to be
      material, then such Lender or the Administrative Agent may notify the
      Borrower of such fact. To the extent that the amount of such reduction in
      the return on capital is not reflected in the Prime Rate, the Borrower
      agrees to pay such Lender or (as the case may be) the Administrative Agent
      for the amount of such reduction in the return on capital as and when such
      reduction is determined upon presentation by such Lender or (as the case
      may be) the Administrative Agent of a certificate in accordance with
      Section 5.9 hereof. Each Lender shall allocate such cost increases among
      its customers in good faith and on an equitable basis.

<PAGE>

            5.9. CERTIFICATE. A certificate setting forth any additional amounts
      payable pursuant to Sections 5.7 or 5.8 and a brief explanation of such
      amounts which are due, submitted by any Lender or the Administrative Agent
      to the Borrower, shall be conclusive, absent manifest error, that such
      amounts are due and owing.

            5.10. INDEMNITY. The Borrower agrees to indemnify each Lender and to
      hold each Lender harmless from and against any loss, cost or expense
      actually incurred (excluding loss of anticipated profits) that such Lender
      may sustain or incur as a consequence of (a) default by the Borrower in
      payment of the principal amount of or any interest on any Eurodollar Rate
      Loans or Fixed Rate Loans as and when due and payable, including any such
      loss or expense arising from interest or fees payable by such Lender to
      banks of funds obtained by it in order to maintain its Eurodollar Rate
      Loans or Fixed Rate Loans, (b) default by the Borrower in making a
      borrowing or conversion after the Borrower has given (or is deemed to have
      given) a Loan Request or a Conversion Request relating thereto in
      accordance with Section 2.6 or Section 2.7, or (c) the making of any
      payment of a Eurodollar Rate Loan or a Fixed Rate Loan or the making of
      any conversion of any such Loan which is not a Swing Line Loan or any such
      Fixed Rate Loan to a Prime Rate Loan on a day that is not the last day of
      the applicable Interest Period with respect thereto, including interest or
      fees payable by such Lender to lenders of funds obtained by it in order to
      maintain any such Loans.

            5.11. INTEREST AFTER DEFAULT.

                  5.11.1. OVERDUE AMOUNTS. Overdue principal and (to the extent
            permitted by applicable law) interest on the Loans and all other
            overdue amounts payable hereunder (including Unpaid Reimbursement
            Obligations) or under any of the other Loan Documents shall bear
            interest (or fees in the case of Unpaid Reimbursement Obligations)
            compounded monthly and payable on demand at a rate per annum equal
            to two percent (2.00%) above the rate of interest or Letter of
            Credit Fee (including the Applicable Margin) then applicable thereto
            (or, if no rate of interest is then applicable thereto, the Prime
            Rate) until such amount shall be paid in full (after as well as
            before judgment).

                  5.11.2. AMOUNTS NOT OVERDUE. During the continuance of a
            Default or an Event of Default, until such Default or Event of
            Default has been cured or remedied or such Default or Event of
            Default has been waived by the Lenders or the Required Lenders
            pursuant to Section 16.12, (a) the principal of the Revolving Credit
            Loans not overdue shall, bear interest at a rate per annum equal to
            two percent (2.00%) above the rate of interest otherwise applicable,
            and (b) the Applicable Margin applicable to Letter of Credit Fees
            shall be equal to two percent (2.00%) above the Letter of Credit Fee
            otherwise applicable.

      6. GUARANTIES.

            6.1. GUARANTIES OF SIGNIFICANT SUBSIDIARIES. The Obligations shall
      also be guaranteed by the Significant Subsidiaries pursuant to the terms
      of the Guaranties.

      7. REPRESENTATIONS AND WARRANTIES.

<PAGE>

      The Borrower represents and warrants to the Lenders and the Administrative
Agent as follows:

            7.1. CORPORATE AUTHORITY.

                  7.1.1. INCORPORATION; GOOD STANDING. Each of the Borrower and
            its Subsidiaries (a) is a corporation (or similar business entity)
            duly organized, validly existing and in good standing under the laws
            of its jurisdiction of incorporation or formation except, solely
            with respect to Subsidiaries of the Borrower which are not
            Significant Subsidiaries, where a failure to be so organized,
            existing or formed would not have a Material Adverse Effect, (b) has
            all requisite corporate (or the equivalent entity) power to own its
            property and conduct its business as now conducted and as presently
            contemplated except, solely with respect to Subsidiaries of the
            Borrower which are not Significant Subsidiaries, where such a
            failure would not have a Material Adverse Effect, and (c) is in good
            standing as a foreign corporation (or similar business entity) and
            is duly authorized to do business in each jurisdiction where such
            qualification is necessary except, solely with respect to
            Subsidiaries of the Borrower which are not Significant Subsidiaries,
            where a failure to be so qualified would not have a Material Adverse
            Effect.

                  7.1.2. AUTHORIZATION. The execution, delivery and performance
            of this Credit Agreement and the other Loan Documents to which the
            Borrower or any of its Significant Subsidiaries is or is to become a
            party and the transactions contemplated hereby and thereby (a) are
            within the corporate (or the equivalent entity) authority of such
            Person, (b) have been duly authorized by all necessary corporate (or
            the equivalent entity) proceedings, (c) do not and will not conflict
            with or result in any breach or contravention of any provision of
            law, statute, rule or regulation to which the Borrower or any of its
            Significant Subsidiaries is subject or any judgment, order, writ,
            injunction, license or permit applicable to the Borrower or any of
            its Significant Subsidiaries and (d) do not conflict with any
            provision of the Governing Documents of, or any agreement or other
            instrument binding upon, the Borrower or any of its Significant
            Subsidiaries.

                  7.1.3. ENFORCEABILITY. The execution and delivery of this
            Credit Agreement and the other Loan Documents to which the Borrower
            or any of its Significant Subsidiaries is or is to become a party
            will result in valid and legally binding obligations of such Person
            enforceable against it in accordance with the respective terms and
            provisions hereof and thereof, except as enforceability is limited
            by bankruptcy, insolvency, reorganization, moratorium or other laws
            relating to or affecting generally the enforcement of creditors'
            rights and except to the extent that availability of the remedy of
            specific performance or injunctive relief is subject to the
            discretion of the court before which any proceeding therefor may be
            brought.

            7.2. GOVERNMENTAL APPROVALS. The execution, delivery and performance
      by the Borrower and any of its Significant Subsidiaries of this Credit
      Agreement and the other Loan Documents to which the Borrower or any of its
      Significant Subsidiaries is

<PAGE>

      or is to become a party and the transactions contemplated hereby and
      thereby do not require the approval or consent of, or filing with, any
      governmental agency or authority other than those already obtained.

            7.3. TITLE TO PROPERTIES. Except as indicated on Schedule 7.3
      hereto, the Borrower and its Subsidiaries own all of the assets reflected
      in the consolidated and combined balance sheet of the Borrower and its
      Subsidiaries as at the Balance Sheet Date or acquired since that date
      (except property and assets sold or otherwise disposed of in the ordinary
      course of business since that date and Real Estate leased by the Borrower
      or its Subsidiaries), subject to no Liens or other rights of others,
      except Permitted Liens.

            7.4. FINANCIAL STATEMENTS AND PROJECTIONS.

                  7.4.1. FISCAL YEAR. The Borrower and each of its Subsidiaries
            has a fiscal or financial year which is the twelve months ending on
            or about June 30 of each calendar year.

                  7.4.2. FINANCIAL STATEMENTS. There has been furnished to each
            of the Lenders an audited consolidated and combined balance sheet of
            the Borrower and its Subsidiaries as at the Balance Sheet Date, an
            audited consolidated and combined statement of income of the
            Borrower and its Subsidiaries for the fiscal year then ended, and an
            audited consolidated and combined cash flow statement for the fiscal
            year then ended. Such balance sheet and statements of income have
            been prepared in accordance with GAAP and fairly present the
            financial condition of the Borrower as at the close of business on
            the date thereof and the results of operations for the fiscal year
            then ended. There are no contingent liabilities of the Borrower or
            any of its Subsidiaries as of such date involving material amounts,
            known to the officers of the Borrower, which were not disclosed in
            such balance sheet and the notes related thereto.

                  7.4.3. PROJECTIONS. The projections of the income statements,
            balance sheets and cash flow statements of the Borrower and its
            Subsidiaries on a consolidated and combined basis for each of the
            next three (3) fiscal years ending on or about June 30, 2006, copies
            of which have been delivered to the Administrative Agent. To the
            best knowledge of the Borrower or any of its Subsidiaries at the
            time such projections were made, no facts exist that (individually
            or in the aggregate) would result in any material change in any of
            such projections. The projections are based upon estimates and
            assumptions that were reasonable at the time such estimates and
            assumptions were made, have been prepared on the basis of the
            assumptions stated therein and reflect the reasonable estimates of
            the Borrower and its Subsidiaries of the results of operations and
            other information projected therein.

            7.5. NO MATERIAL ADVERSE CHANGES, ETC. Since the Balance Sheet Date
      there has been no event or occurrence which has had a Material Adverse
      Effect. Since the Balance Sheet Date, the Borrower has not made any
      Restricted Payment other than those permitted under Sections 9.4 (a) and
      (b).

<PAGE>

            7.6. FRANCHISES, PATENTS, COPYRIGHTS, ETC. The Borrower and each of
      its Subsidiaries possesses all franchises, patents, copyrights,
      trademarks, trade names, licenses and permits, and rights in respect of
      the foregoing, adequate for the conduct of its business substantially as
      now conducted without known conflict with any rights of others, except any
      franchises, patents, copyrights, trademarks, trade names, licenses and
      permits, and rights in respect of the foregoing, where the lack of such
      would not result in a Material Adverse Effect.

            7.7. LITIGATION. Except as set forth in Schedule 7.7 hereto, there
      are no actions, suits, proceedings or investigations of any kind pending
      or, to the best knowledge of the Borrower and its Subsidiaries, threatened
      against the Borrower or any of its Subsidiaries before any Governmental
      Authority, that, (a) if adversely determined, might, either in any case or
      in the aggregate, (i) have a Material Adverse Effect or (ii) materially
      impair the right of the Borrower and its Subsidiaries, considered as a
      whole, to carry on business substantially as now conducted by them, or (b)
      which question the validity of this Credit Agreement or any of the other
      Loan Documents, or any action taken or to be taken pursuant hereto or
      thereto.

            7.8. NO MATERIALLY ADVERSE CONTRACTS, ETC. Neither the Borrower nor
      any of its Subsidiaries (a) is in violation of any provision of, or
      subject to, any Governing Document, or any applicable judgment, decree,
      order, law, statute, license, rule or regulation in a manner that has or
      is expected in the future to have a Material Adverse Effect, or (b) is a
      party to any contract or agreement that has or is expected, in the
      judgment of the Borrower's officers, to have any Material Adverse Effect,
      or is in violation of any provision of any agreement or instrument to
      which it may be subject or by which it or any of its properties may be
      bound, in any of the foregoing cases in a manner that could have a
      Material Adverse Effect.

            7.9. TAX STATUS. To the extent required, the Borrower and its
      Subsidiaries (a) have made or filed all federal, state and foreign income
      and all other tax returns, reports and declarations required by any
      jurisdiction to which any of them is subject, (b) have paid all taxes and
      other governmental assessments and charges shown or determined to be due
      on such returns, reports and declarations, except those being contested in
      good faith and by appropriate proceedings and (c) have, in the reasonable
      opinion of management, set aside on their books adequate reserves in
      accordance with GAAP for the payment of all taxes for periods subsequent
      to the periods to which such returns, reports or declarations apply. There
      are no unpaid taxes in any material amount claimed to be due by the taxing
      authority of any jurisdiction, and none of the officers of the Borrower
      know of any basis for any such claim.

            7.10. NO EVENT OF DEFAULT. No Default or Event of Default has
      occurred and is continuing.

            7.11. HOLDING COMPANY AND INVESTMENT COMPANY ACTS. Neither the
      Borrower nor any of its Subsidiaries is a "holding company", or a
      "subsidiary company" of a "holding company", or an "affiliate" of a
      "holding company", as such terms are defined in the Public Utility Holding
      Company Act of 1935; nor is it an "investment company",

<PAGE>

      or an "affiliated company" or a "principal underwriter" of an "investment
      company", as such terms are defined in the Investment Company Act of 1940.

            7.12. ABSENCE OF FINANCING STATEMENTS, ETC. Except with respect to
      Permitted Liens, there is no financing statement, security agreement,
      chattel mortgage, real estate mortgage or other document filed or recorded
      with any filing records, registry or other public office, that purports to
      cover, affect or give notice of any present or possible future Lien on any
      assets or property of the Borrower or any of its Subsidiaries or any
      rights relating thereto.

            7.13. CERTAIN TRANSACTIONS. To the best knowledge of the Borrower
      and its Subsidiaries, none of the officers, directors, or employees of the
      Borrower or any of its Subsidiaries is presently a party to any
      transaction with the Borrower or any of its Subsidiaries (other than for
      services as employees, officers and directors), including any contract,
      agreement or other arrangement providing for the furnishing of services to
      or by, providing for rental of real or personal property to or from, or
      otherwise requiring payments to or from any officer, director or such
      employee or, to the knowledge of the Borrower, any corporation,
      partnership, trust or other entity in which any officer, director, or any
      such employee has a substantial interest or is an officer, director,
      trustee or partner.

            7.14. EMPLOYEE BENEFIT PLANS.

                  7.14.1. IN GENERAL. Each Employee Benefit Plan and each
            Guaranteed Pension Plan has been maintained and operated in
            compliance in all material respects with the provisions of ERISA and
            all Applicable Pension Legislation and, to the extent applicable,
            the Code, including but not limited to the provisions thereunder
            respecting prohibited transactions and the bonding of fiduciaries
            and other persons handling plan funds as required by Section 412 of
            ERISA, unless noncompliance could not, individually or in the
            aggregate, reasonably be expected to result in a Material Adverse
            Effect.

                  7.14.2. TERMINABILITY OF WELFARE PLANS. No Employee Benefit
            Plan, which is an employee welfare benefit plan within the meaning
            of Section 3(1) or Section 3(2)(B) of ERISA, provides benefit
            coverage subsequent to termination of employment, except as required
            by Title I, Part 6 of ERISA or the applicable state insurance laws.
            The Borrower may terminate, to the extent sponsored by it, each such
            Plan at any time (or at any time subsequent to the expiration of any
            applicable bargaining agreement) in the discretion of the Borrower
            without liability to any Person other than for claims arising prior
            to termination.

                  7.14.3. GUARANTEED PENSION PLANS. Except as could not,
            individually or in the aggregate, reasonably be expected to result
            in a Material Adverse Effect, (a) each contribution required to be
            made to a Guaranteed Pension Plan, whether required to be made to
            avoid the incurrence of an accumulated funding deficiency, the
            notice or lien provisions of Section 302(f) of ERISA, or otherwise,
            has been timely made; and (b) no waiver of an accumulated funding
            deficiency or extension of amortization periods has been received
            with respect to any

<PAGE>

            Guaranteed Pension Plan, and neither the Borrower nor any ERISA
            Affiliate is obligated to or has posted security in connection with
            an amendment to a Guaranteed Pension Plan pursuant to Section 307 of
            ERISA or Section 401(a)(29) of the Code. Based on the latest
            valuation of each Guaranteed Pension Plan (which in each case
            occurred within twelve months of the date of this representation),
            and on the actuarial methods and assumptions employed for that
            valuation, the aggregate benefit liabilities of all such Guaranteed
            Pension Plans within the meaning of Section 4001 of ERISA did not
            exceed the aggregate value of the assets of all such Guaranteed
            Pension Plans, disregarding for this purpose the benefit liabilities
            and assets of any Guaranteed Pension Plan with assets in excess of
            benefit liabilities, except as could not, individually or in the
            aggregate, reasonably be expected to result in a Material Adverse
            Effect.

                  7.14.4. MULTIEMPLOYER PLANS. Except as could not, individually
            or in the aggregate, reasonably be expected to result in a Material
            Adverse Effect, neither the Borrower nor any ERISA Affiliate has
            incurred any liability (including secondary liability) to any
            Multiemployer Plan as a result of a complete or partial withdrawal
            from such Multiemployer Plan under Section 4201 of ERISA or as a
            result of a sale of assets described in Section 4204 of ERISA. After
            due inquiry, the Borrower is not aware that any Multiemployer Plan
            is in reorganization or insolvent under and within the meaning of
            Section 4241 or Section 4245 of ERISA or is at risk of entering
            reorganization or becoming insolvent, or that any Multiemployer Plan
            intends to terminate or has been terminated under Section 4041A of
            ERISA.

            7.15. USE OF PROCEEDS.

                  7.15.1. GENERAL. The proceeds of the Loans shall be used for
            working capital, stock repurchases and dividends permitted by
            Section 9.4 and general corporate purposes. The Borrower will obtain
            Letters of Credit solely for general corporate purposes.

                  7.15.2. REGULATIONS U AND X. No portion of any Loan is to be
            used, and no portion of any Letter of Credit is to be obtained, for
            the purpose of purchasing or carrying any "margin security" or
            "margin stock" as such terms are used in Regulations U and X of the
            Board of Governors of the Federal Reserve System, 12 C.F.R. Parts
            221 and 224.

                  7.15.3. INELIGIBLE SECURITIES. No portion of the proceeds of
            any Loans is to be used, and no portion of any Letter of Credit is
            to be obtained, for the purpose of knowingly purchasing, or
            providing credit support for the purchase of, during the
            underwriting or placement period or within thirty (30) days
            thereafter, any Ineligible Securities underwritten or privately
            placed by a Financial Affiliate.

            7.16. ENVIRONMENTAL COMPLIANCE.

<PAGE>

                  (a) None of the Borrower, its Subsidiaries or, to the best
            knowledge of the Borrower or any of its Subsidiaries, any operator
            of the Real Estate or any operations thereon is in violation, or has
            notice of an alleged violation, of any judgment, decree, order, law,
            license, rule or regulation pertaining to environmental matters,
            including without limitation, those arising under Environmental
            Laws, which violation would have a Material Adverse Effect;

                  (b) neither the Borrower nor any of its Subsidiaries has
            received written notice from any Governmental Authority, or, to the
            best of the Borrower's and any of its Subsidiaries' knowledge, any
            other third party, (i) that any one of them has been identified by
            the United States Environmental Protection Agency ("EPA") as a
            potentially responsible party under CERCLA with respect to a site
            listed on the National Priorities List, 40 C.F.R. Part 300 Appendix
            B; (ii) that any Hazardous Substances which any one of them has
            generated, transported or disposed of has been found at any site at
            which a Governmental Authority has conducted or has ordered that any
            Borrower or any of its Subsidiaries conduct a remedial
            investigation, removal or other response action pursuant to any
            Environmental Law; or (iii) that it is or shall be a named party to
            any claim, action, cause of action, complaint, or legal or
            administrative proceeding (in each case, contingent or otherwise),
            the result of which could have a Material Adverse Effect, arising
            out of any third party's incurrence of costs, expenses, losses or
            damages of any kind whatsoever in connection with the release of
            Hazardous Substances;

                  (c) except as set forth on Schedule 7.16 attached hereto, to
            the best of the Borrower's knowledge: (i) no underground tank or
            other underground storage receptacle for Hazardous Substances is
            located on any portion of the Real Estate in violation of applicable
            Environmental Laws; (ii) in the course of any activities conducted
            by the Borrower, its Subsidiaries or operators of its properties, no
            Hazardous Substances have been generated or are being used on the
            Real Estate except in accordance with applicable Environmental Laws;
            (iii) there have been no releases (i.e. any past or present
            releasing, spilling, leaking, pumping, pouring, emitting, emptying,
            discharging, injecting, escaping, disposing or dumping) or
            threatened releases of Hazardous Substances on, upon, into or from
            the properties of the Borrower or its Subsidiaries, which releases
            would have a Material Adverse Effect; and (iv) any Hazardous
            Substances that have been generated on any of the Real Estate have
            been transported offsite only by carriers having an identification
            number issued by the EPA (or the equivalent thereof in any foreign
            jurisdiction), treated or disposed of only by treatment or disposal
            facilities maintaining valid permits as required under applicable
            Environmental Laws, which transporters and facilities have been and
            are, to the best of the Borrower's knowledge, operating in
            compliance with such permits and applicable Environmental Laws; and

                  (d) neither the Borrower nor any of its Subsidiaries has
            received written notice that it is required to conduct an
            environmental clean-up under any Environmental Law by virtue of the
            transactions set forth herein and contemplated hereby.
<PAGE>

            7.17. SUBSIDIARIES, ETC. Schedule 7.17 (as amended and in effect
      from time to time pursuant to Section 8.11) sets forth a complete and
      accurate list of all of the Subsidiaries of the Borrower. As of the
      Closing Date, none of the Subsidiaries of the Borrower is a Significant
      Subsidiary.

            7.18. DISCLOSURE. None of this Credit Agreement or any of the other
      Loan Documents contains any untrue statement of a material fact or omits
      to state a material fact (known to the Borrower or any of its Subsidiaries
      in the case of any document or information not furnished by it or any of
      its Subsidiaries) necessary in order to make the statements herein or
      therein not misleading. There is no fact known to the Borrower or any of
      its Subsidiaries which has a Material Adverse Effect, or which is
      reasonably likely in the future to have a Material Adverse Effect,
      exclusive of effects resulting from changes in general economic
      conditions, legal standards or regulatory conditions.

            7.19. FOREIGN ASSETS CONTROL REGULATIONS, ETC. None of the
      requesting or borrowing of the Loans, the requesting or issuance,
      extension or renewal of any Letters of Credit or the use of the proceeds
      of any thereof will violate the Trading With the Enemy Act (50 U.S.C.
      Sections 1 et seq., as amended) (the "Trading With the Enemy Act") or any
      of the foreign assets control regulations of the United States Treasury
      Department (31 CFR, Subtitle B, Chapter V, as amended) (the "Foreign
      Assets Control Regulations") or any enabling legislation or executive
      order relating thereto (which for the avoidance of doubt shall include,
      but shall not be limited to (a) Executive Order 13224 of September 21,
      2001 Blocking Property and Prohibiting Transactions With Persons Who
      Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079
      (2001)) (the "Executive Order") and (b) the Uniting and Strengthening
      America by Providing Appropriate Tools Required to Intercept and Obstruct
      Terrorism Act of 2001 (Public Law 107-56)). Furthermore, neither the
      Borrower nor any of its Subsidiaries or other Affiliates (a) is or will
      become a "blocked person" as described in the Executive Order, the Trading
      With the Enemy Act or the Foreign Assets Control Regulations or (b)
      engages or will engage in any dealings or transactions, or be otherwise
      associated, with any such "blocked person".

      8. AFFIRMATIVE COVENANTS.

      The Borrower covenants and agrees that, so long as any Loan, Unpaid
Reimbursement Obligation, Letter of Credit or Note is outstanding or any Lender
has any obligation to make any Loans or the Issuing Lender has any obligation to
issue, extend, amend or renew any Letters of Credit:

            8.1. PUNCTUAL PAYMENT. Subject to the grace periods set forth in
      Section 13.1(b), the Borrower will duly and punctually pay or cause to be
      paid the principal and interest on the Loans, all Reimbursement
      Obligations, the Letter of Credit Fees, the commitment fees, the
      Administrative Agent's fee and all other amounts provided for in this
      Credit Agreement and the other Loan Documents to which the Borrower or any
      of its Subsidiaries is a party, all in accordance with the terms of this
      Credit Agreement and such other Loan Documents.

<PAGE>

            8.2. RECORDS AND ACCOUNTS. The Borrower will (a) keep, and cause
      each of its Subsidiaries to keep, true and accurate records and books of
      account in which full, true and correct entries will be made in accordance
      with GAAP, (b) maintain adequate accounts and reserves for all taxes
      (including income taxes), depreciation, depletion, obsolescence and
      amortization of its properties and the properties of its Subsidiaries,
      contingencies, and other reserves, and (c) at all times engage an
      independent certified public accountant.

            8.3. FINANCIAL STATEMENTS, CERTIFICATES AND INFORMATION. The
      Borrower will deliver to each of the Lenders:

                  (a) as soon as practicable, but in any event not later than
            ninety (90) days after the end of each fiscal year of the Borrower,
            the consolidated and combined balance sheet of the Borrower and its
            Subsidiaries as at the end of such year, and the related
            consolidated and combined statement of income and consolidated and
            combined statement of cash flow for such year, each setting forth in
            comparative form the figures for the previous fiscal year and all
            such consolidated and combined statements to be in reasonable
            detail, prepared in accordance with GAAP, and audited by an
            independent certified public accountant;

                  (b) as soon as practicable, but in any event not later than
            forty-five (45) days after the end of each of the fiscal quarters of
            the Borrower, copies of the unaudited consolidated and combined
            balance sheet of the Borrower and its Subsidiaries as at the end of
            such quarter, and the related consolidated and combined statement of
            income and consolidated and combined statement of cash flow for the
            portion of the Borrower's fiscal year then elapsed, all in
            reasonable detail and prepared in accordance with GAAP, together
            with a certification by the chief financial officer or treasurer of
            the Borrower that the information contained in such financial
            statements fairly presents the financial position of the Borrower
            and its Subsidiaries on the date thereof (subject to year-end
            adjustments);

                  (c) simultaneously with the delivery of the financial
            statements referred to in subsections (a) and (b) above, a statement
            certified by the chief financial officer or treasurer of the
            Borrower in substantially the form of Exhibit C hereto (a
            "Compliance Certificate") and setting forth in reasonable detail
            computations evidencing compliance with the covenants contained in
            Section 10;

                  (d) as soon as practicable after the filing or mailing
            thereof, copies of all financial statements, disclosure statements,
            reports and proxies filed with the Securities and Exchange
            Commission or sent to the stockholders of the Borrower;

                  (e) as soon as practicable, but in any event not later than
            thirty (30) days after the filing of the 10K of the Borrower, annual
            income statements, balance sheets and cash flow statements for the
            immediately succeeding fiscal

<PAGE>

            year of the Borrower and its Subsidiaries delivered to the
            Administrative Agent; and

                  (f) from time to time such other additional information
            regarding the financial position of the Borrower and its
            Subsidiaries as the Administrative Agent may reasonably request.

            8.4. NOTICES.

                  8.4.1. DEFAULTS. The Borrower will promptly notify the
            Administrative Agent and each of the Lenders in writing of the
            occurrence of any Default or Event of Default, together with a
            reasonably detailed description thereof, and the actions the
            Borrower proposes to take with respect thereto. If any Person shall
            give any notice to the Borrower or any of its Affiliates or, to the
            best knowledge of the Borrower, take any other action in respect of
            a claimed default (whether or not constituting an Event of Default)
            under this Credit Agreement or any other note, evidence of
            indebtedness, indenture or other obligation to which or with respect
            to which the Borrower or any of its Subsidiaries is a party or
            obligor, whether as principal, guarantor, surety or otherwise, the
            Borrower shall forthwith give written notice thereof to the
            Administrative Agent and each of the Lenders, describing the notice
            or action and the nature of the claimed default.

                  8.4.2. ENVIRONMENTAL EVENTS. The Borrower will promptly give
            notice to the Administrative Agent (a) of any violation of any
            Environmental Law that the Borrower or any of its Subsidiaries
            reports in writing (or for which any written report supplemental to
            any oral report is made) to any Governmental Authority and (b) upon
            receipt of notice thereof, of any inquiry, proceeding,
            investigation, or other action, including a notice from any agency
            or any Governmental Authority of potential environmental liability,
            that could have a Material Adverse Effect.

                  8.4.3. NOTICE OF LITIGATION AND JUDGMENTS. The Borrower will,
            and will cause each of its Subsidiaries to, give notice to the
            Administrative Agent and each of the Lenders in writing promptly of
            becoming aware of any litigation or proceedings threatened in
            writing or any pending litigation and proceedings affecting the
            Borrower or any of its Subsidiaries or to which the Borrower or any
            of its Subsidiaries is or becomes a party involving an uninsured
            claim against the Borrower or any of its Subsidiaries that could
            reasonably be expected to have a Material Adverse Effect on the
            Borrower or any of its Subsidiaries and stating the nature and
            status of such litigation or proceedings. The Borrower will, and
            will cause each of its Subsidiaries to, give notice to the
            Administrative Agent and each of the Lenders, in writing, in form
            and detail reasonably satisfactory to the Administrative Agent,
            within ten (10) days of any judgment not covered by insurance, final
            or otherwise, against the Borrower or any of its Subsidiaries in an
            amount in excess of $5,000,000.

<PAGE>

                  8.4.4. ERISA EVENTS. The Borrower will (a) promptly upon
            receipt or dispatch, furnish to the Administrative Agent any notice,
            report or demand sent or received in respect of a Guaranteed Pension
            Plan under Sections 302, 4041, 4042, 4043, 4063, 4065, 4066 and 4068
            of ERISA, or in respect of a Multiemployer Plan, under Sections
            4041A, 4202, 4219, 4242, or 4245 of ERISA and (b) upon the request
            of the Administrative Agent, promptly furnish to the Administrative
            Agent a copy of all actuarial statements required to be submitted
            under all Applicable Pension Legislation.

                  8.4.5. NOTICE OF CHANGE OF FISCAL YEAR END. The Borrower will,
            and will cause each of its Subsidiaries to, give notice to the
            Administrative Agent in writing thirty (30) days prior to any change
            of the date of the end of its fiscal or financial year from that set
            forth in Section 7.4.1.

            8.5. LEGAL EXISTENCE; MAINTENANCE OF PROPERTIES. The Borrower will
      do or cause to be done all things reasonably necessary to preserve and
      keep in full force and effect its legal existence, rights and franchises
      and that of its Subsidiaries. It (i) will cause all of its properties and
      those of its Subsidiaries used or useful in the conduct of its business or
      the business of its Subsidiaries to be maintained and kept in good
      condition, repair and working order and supplied with all necessary
      equipment, (ii) will cause to be made all necessary repairs, renewals,
      replacements, betterments and improvements thereof, all as in the judgment
      of the Borrower may be necessary so that the business carried on in
      connection therewith may be properly and advantageously conducted at all
      times, and (iii) will, and will cause each of its Subsidiaries to,
      continue to engage primarily in the businesses now conducted by them and
      in related businesses; provided that nothing in this Section 8.5 shall
      prevent the Borrower from discontinuing the operation and maintenance of
      any of its properties or any of those of its Subsidiaries if such
      discontinuance is, in the judgment of the Borrower, desirable in the
      conduct of its or their business and that do not in the aggregate have a
      Material Adverse Effect.

            8.6. INSURANCE. The Borrower will, and will cause each of its
      Subsidiaries to, maintain with financially sound and reputable insurers
      insurance with respect to its properties and business against such
      casualties and contingencies as shall be in accordance with the general
      practices of businesses engaged in similar activities in similar
      geographic areas and in amounts, containing such terms, in such forms and
      for such periods as may be reasonable and prudent.

            8.7. TAXES. The Borrower will, and will cause each of its
      Subsidiaries to, duly pay and discharge, or cause to be paid and
      discharged, before the same shall become overdue, all taxes, assessments
      and other governmental charges imposed upon it and its Real Estate, sales
      and activities, or any part thereof, or upon the income or profits
      therefrom, as well as all claims for labor, materials, or supplies that if
      unpaid might by law become a Lien or charge upon any of its property;
      provided that any such tax, assessment, charge, levy or claim need not be
      paid if the validity or amount thereof shall currently be contested in
      good faith by appropriate proceedings and if the Borrower or such
      Subsidiary shall have set aside on its books adequate reserves with
      respect thereto; and provided further that the Borrower and each
      Subsidiary of the

<PAGE>

      Borrower will pay all such taxes, assessments, charges, levies or claims
      forthwith upon the commencement of proceedings to foreclose any Lien that
      may have attached as security therefor.

            8.8. INSPECTION OF PROPERTIES AND BOOKS, ETC.

                  8.8.1. GENERAL. The Borrower will keep, and will cause each
            Subsidiary to keep, proper books of record and account in which
            full, true and correct entries shall be made of all dealings and
            transactions in relation to its business and activities; and will
            permit, and will cause each Subsidiary to permit, representatives of
            the Administrative Agent and any Lender (prior to the occurrence or
            continuation of a Default or an Event of Default, at the
            Administrative Agent's or such Lender's expense, as applicable,
            unless otherwise agreed to by the Administrative Agent or such
            Lender, as applicable, and the Borrower, and following the
            occurrence or continuation of a Default or an Event of Default, at
            the Borrower's expense) to visit and inspect any of their respective
            properties, to examine and make abstracts from any of their
            respective books and records and to discuss their respective
            affairs, finances and accounts with their respective officers,
            employees and independent public accountants, all at such reasonable
            times, upon reasonable notice and as often as may reasonably be
            desired.

                  8.8.2. COMMUNICATIONS WITH ACCOUNTANTS. If a Default or Event
            of Default shall have occurred or be continuing, the Borrower
            authorizes the Administrative Agent and, if accompanied by the
            Administrative Agent, the Lenders to communicate directly with the
            Borrower's independent certified public accountants and authorizes
            such accountants to disclose to the Administrative Agent and the
            Lenders any and all financial statements and other supporting
            financial documents and schedules including copies of any management
            letter with respect to the business, financial condition and other
            affairs of the Borrower or any of its Subsidiaries.

            8.9. COMPLIANCE WITH LAWS. The Borrower will, and will cause each of
      its Subsidiaries to, comply with (a) the applicable laws and regulations
      wherever its business is conducted, including all Environmental Laws, (b)
      the provisions of its Governing Documents, (c) all agreements and
      instruments by which it or any of its properties may be bound and (d) all
      applicable decrees, orders, and judgments.

            8.10. USE OF PROCEEDS. The Borrower will use the proceeds of the
      Loans and obtain Letters of Credit solely for the purposes set forth in
      Section 7.15.1.

            8.11. SUBSIDIARIES.

                  8.11.1. ADDITIONAL SUBSIDIARIES. If, after the Closing Date,
            the Borrower or any of its Subsidiaries creates or acquires, either
            directly or indirectly, any Subsidiary, (a) it will promptly notify
            the Administrative Agent of such creation or acquisition, as the
            case may be, and provide the Administrative Agent (for itself and
            the Lenders) with an updated Schedule 7.17, and (b)

<PAGE>

            contemporaneously with the formation of such Subsidiary, the
            Borrower shall, or shall cause such Subsidiary to, take all other
            action required by this Section 8.11.

                  8.11.2. NEW GUARANTORS. The Borrower will cause each
            Significant Subsidiary (including any Subsidiary which, on or after
            the Closing Date, becomes a Significant Subsidiary) created,
            acquired (including any Significant Subsidiary acquired pursuant to
            Section 9.5.1 hereof) or otherwise existing, on or after the Closing
            Date to promptly become a Guarantor and shall cause such Significant
            Subsidiary to execute and deliver to the Administrative Agent, for
            the benefit of the Administrative Agent and the Lenders, a Guaranty
            in the form of Exhibit E hereto and to comply with all conditions
            precedent set forth therein.

            8.12. FURTHER ASSURANCES. The Borrower will, and will cause each of
      its Subsidiaries to, cooperate with the Lenders and the Administrative
      Agent and execute such further instruments and documents as the Lenders or
      the Administrative Agent shall reasonably request to carry out to their
      satisfaction the transactions contemplated by this Credit Agreement and
      the other Loan Documents.

      9. CERTAIN NEGATIVE COVENANTS.

      The Borrower covenants and agrees that, so long as any Loan, Unpaid
Reimbursement Obligation, Letter of Credit or Note is outstanding or any Lender
has any obligation to make any Loans or the Issuing Lender has any obligations
to issue, extend, amend or renew any Letters of Credit:

            9.1. RESTRICTIONS ON INDEBTEDNESS. The Borrower will not, and will
      not permit any of its Subsidiaries to, create, incur, assume, guarantee or
      be or remain liable, contingently or otherwise, with respect to any
      Indebtedness other than:

                  (a) Indebtedness to the Lenders, the Issuing Lender and the
            Administrative Agent arising under any of the Loan Documents;

                  (b) endorsements for collection, deposit or negotiation and
            warranties of products or services, in each case incurred in the
            ordinary course of business;

                  (c) Indebtedness existing on the date hereof and listed and
            described on Schedule 9.1 hereto;

                  (d) Indebtedness incurred in connection with guarantees and/or
            comfort letters issued by the Borrower in respect of obligations of
            its Subsidiaries, CJI or Minority Owned Joint Ventures, provided
            that the aggregate amount of such Indebtedness of the Borrower shall
            not exceed $30,000,000 at any one time;

                  (e) Indebtedness in respect of derivative contracts described
            in clause (i) of the definition of the term "Indebtedness"
            consisting of foreign exchange

<PAGE>

            contracts entered into in the ordinary course of business and for
            non-speculative purposes;

                  (f) Indebtedness in respect of Capitalized Leases and
            Synthetic Leases, provided that the aggregate principal amount of
            such Indebtedness of the Borrower shall not exceed the aggregate
            amount of $10,000,000 at any one time;

                  (g) Indebtedness in respect of letters of credit in the
            ordinary course of business (other than Letters of Credit);

                  (h) Indebtedness in respect of Investments permitted pursuant
            to Section 9.3(g) hereof;

                  (i) Indebtedness of the type described in clause (g) of the
            definition of "Indebtedness" in an aggregate amount not to exceed
            $10,000,000 at any time; and

                  (j) other Indebtedness of the Borrower and its Subsidiaries,
            provided that the aggregate principal amount of such Indebtedness of
            the Borrower and its Subsidiaries shall not exceed the aggregate
            amount of $15,000,000 at any one time.

            9.2. RESTRICTIONS ON LIENS.

                  9.2.1. PERMITTED LIENS. The Borrower will not, and will not
      permit any of its Subsidiaries to, (a) create or incur or suffer to be
      created or incurred or to exist any Lien upon any of its property or
      assets of any character whether now owned or hereafter acquired, or upon
      the income or profits therefrom; (b) transfer any of such property or
      assets or the income or profits therefrom for the purpose of subjecting
      the same to the payment of Indebtedness or performance of any other
      obligation in priority to payment of its general creditors; (c) acquire,
      or agree or have an option to acquire, any property or assets upon
      conditional sale or other title retention or purchase money security
      agreement, device or arrangement; (d) suffer to exist for a period of more
      than thirty (30) days after the same shall have been incurred any
      Indebtedness or claim or demand against it that if unpaid might by law or
      upon bankruptcy or insolvency, or otherwise, be given any priority
      whatsoever over its general creditors; or (e) sell, assign, pledge or
      otherwise transfer any "receivables" as defined in clause (g) of the
      definition of the term "Indebtedness," with or without recourse; provided
      that the Borrower or any of its Subsidiaries may create or incur or suffer
      to be created or incurred or to exist:

                  (i) Liens in favor of the Borrower on all or part of the
            assets of Subsidiaries of the Borrower securing Indebtedness owing
            by Subsidiaries of the Borrower to the Borrower;

                  (ii) Liens to secure taxes, assessments and other government
            charges in respect of obligations not overdue or Liens on properties
            to secure claims for labor, material or supplies in respect of
            obligations not overdue;

<PAGE>

                  (iii) deposits or pledges made in connection with, or to
            secure payment of, workmen's compensation, unemployment insurance,
            old age pensions or other social security obligations;

                  (iv) Liens on properties in respect of judgments or awards
            that have been in force for less than the applicable period for
            taking an appeal so long as execution is not levied thereunder or in
            respect of which the Borrower or such Subsidiary shall at the time
            in good faith be prosecuting an appeal or proceedings for review and
            in respect of which a stay of execution shall have been obtained
            pending such appeal or review;

                  (v) Liens of carriers, warehousemen, mechanics and
            materialmen, and other like Liens on properties, in respect of
            obligations not overdue or which the Borrower is diligently
            contesting in good faith;

                  (vi) encumbrances on Real Estate consisting of easements,
            rights of way, zoning restrictions, restrictions on the use of real
            property and defects and irregularities in the title thereto,
            landlord's or lessor's liens and other minor Liens, provided that
            none of such Liens (A) interferes materially with the use of the
            property affected in the ordinary conduct of the business of the
            Borrower and its Subsidiaries, and (B) individually or in the
            aggregate have a Material Adverse Effect;

                  (vii) Liens existing on the date hereof and listed on Schedule
            9.2 hereto;

                  (viii) Liens to secure the performance of bids, tenders,
            contracts (other than contracts for the payment of Indebtedness),
            leases, statutory obligations, surety, customs, appeal, performance
            and payment bonds and other obligations of like nature, in each such
            case arising in the ordinary course of business;

                  (ix) Liens with respect to Indebtedness permitted under
            Sections 9.1(f) and (i) hereof; and

                  (x) other Liens not otherwise permitted hereunder, provided
            that such Liens do not secure more than Indebtedness in an aggregate
            amount outstanding or committed in excess of $10,000,000, which
            Indebtedness is also permitted under Section 9.1 hereof.

                        9.2.2. RESTRICTIONS ON NEGATIVE PLEDGES AND UPSTREAM
            LIMITATIONS. The Borrower will not, nor will it permit any of its
            Subsidiaries to (a) enter into or permit to exist any arrangement or
            agreement (other than the Credit Agreement and the other Loan
            Documents) which directly or indirectly prohibits the Borrower or
            any of its Subsidiaries from creating, assuming or incurring any
            Lien upon its properties, revenues or assets or those of any of its
            Subsidiaries whether now owned or hereafter acquired, or (b) enter
            into any agreement, contract or arrangement (other than the Credit
            Agreement and the other Loan Documents) restricting the ability of
            any Subsidiary of the Borrower

<PAGE>

            to pay or make dividends or distributions in cash or kind to the
            Borrower, to make loans, advances or other payments of whatsoever
            nature to the Borrower, or to make transfers or distributions of all
            or any part of its assets to the Borrower, in each case other than
            customary anti-assignment provisions contained in leases and
            licensing agreements entered into by the Borrower or such Subsidiary
            in the ordinary course of its business.

            9.3. RESTRICTIONS ON INVESTMENTS. The Borrower will not, and will
      not permit any of its Subsidiaries to, make or permit to exist or to
      remain outstanding any Investment except Investments in:

                  (a) marketable direct or guaranteed obligations of the United
            States of America that mature within one (1) year from the date of
            purchase by the Borrower;

                  (b) demand deposits, certificates of deposit, bank acceptances
            and time deposits of (i) United States banks having total assets in
            excess of $1,000,000,000, (ii) any Lender or (iii) a commercial bank
            organized under the laws of any other country which is a member of
            the Organization for Economic Cooperation and Development (the
            "OECD"), or a political subdivision of such country, and having
            total assets in excess of $1,000,000,000; provided that such bank is
            acting through a branch or agency located in the country in which it
            is organized or another country which is a member of the OECD;

                  (c) securities commonly known as "commercial paper" issued by
            a corporation organized and existing under the laws of the United
            States of America or any state thereof that at the time of purchase
            have been rated and the ratings for which are not less than "P 1" if
            rated by Moody's, and not less than "A 1" if rated by S&P;

                  (d) repurchase obligations with a term of not more than seven
            (7) days for underlying securities of the types described in
            Sections 9.3(a) and (b);

                  (e) mutual funds which invest solely in the items described in
            Sections 9.3(a) - (d);

                  (f) Investments existing on the date hereof and listed on
            Schedule 9.3 hereto;

                  (g) (i) Investments consisting of the Guaranties, (ii)
            Investments by the Borrower in any Guarantor hereunder or by any
            Guarantor in the Borrower or any other Guarantor, (iii) Investments
            in Subsidiaries which are not Guarantors provided that the aggregate
            of such Investments of the Borrower in Subsidiaries (other than CJI)
            which are not Guarantors shall not exceed the aggregate amount of
            $15,000,000, and (iv) Investments in Minority Owned Joint Ventures
            not to exceed $15,000,000;

                  (h) Investments in CJI, provided that at the time of and after
            giving effect to any such Investment (i) no Default or Event of
            Default has occurred

<PAGE>

            and is continuing, and (ii) the Borrower provides the Administrative
            Agent with evidence of Borrower's Minimum Liquidity;

                  (i) Investments consisting of promissory notes received as
            proceeds of asset dispositions permitted by Section 9.5.2;

                  (j) Investments consisting of loans and advances to employees
            for moving, entertainment, travel and other similar expenses in the
            ordinary course of business not to exceed $1,000,000 in the
            aggregate at any time outstanding;

                  (k) Investments in Permitted Acquisitions (other than Minority
            Owned Joint Ventures or CJI) permitted by Section 9.5.1(a) hereof;
            and

                  (l) other Investments of the Borrower and its Subsidiaries not
            to exceed the aggregate amount of $10,000,000.

            9.4. RESTRICTED PAYMENTS. The Borrower will not make any Restricted
      Payments; provided, however, that so long as no Default or Event of
      Default has occurred and is continuing or would exist as a result thereof,
      the Borrower shall be permitted to make repurchases of or pay dividends
      with respect to its Capital Stock, so long as (a) the aggregate amount of
      the consideration paid by the Borrower for all such Distributions does not
      exceed the sum of $200,000,000 plus, on a cumulative basis, seventy-five
      percent (75%) of positive Consolidated Net Income for each fiscal quarter
      subsequent to September 27, 2003, and (b) at the time of and after giving
      effect to any Distribution (i) no Default or Event of Default has occurred
      and is continuing, and (ii) the Borrower provides the Administrative Agent
      with evidence of Borrower's Minimum Liquidity.

            9.5. MERGER, CONSOLIDATION AND DISPOSITION OF ASSETS.

                  9.5.1. MERGERS AND ACQUISITIONS. The Borrower will not, and
            will not permit any of its Subsidiaries to, become a party to any
            merger, amalgamation or consolidation, or agree to or effect any
            asset acquisition or stock acquisition (other than the acquisition
            of assets in the ordinary course of business consistent with past
            practices) except (a) the merger or consolidation of one or more of
            the Subsidiaries of the Borrower with and into the Borrower; (b) the
            merger or consolidation of two or more Subsidiaries of the Borrower;
            and (c) any asset or stock or other equity interest acquisition by
            the Borrower or any of its Subsidiaries of Persons in the same or
            similar line of business as the Borrower (a "Permitted Acquisition")
            where (1) the Borrower has notified the Administrative Agent of such
            Permitted Acquisition; (2) the business to be acquired would not
            subject the Administrative Agent or the Lenders to any additional
            regulatory or third party approvals in connection with the exercise
            of its rights and remedies under this Credit Agreement or any other
            Loan Document; (3) no contingent liabilities will be incurred or
            assumed in connection with such Permitted Acquisition which could
            reasonably be expected to have a Material Adverse Effect, and any
            Indebtedness incurred or assumed

<PAGE>

            in connection with such Permitted Acquisition shall have been
            permitted to be incurred or assumed pursuant to Section 9.1 hereof;
            (4) the Borrower has provided the Administrative Agent with such
            other information as was reasonably requested by the Administrative
            Agent; (5) after the consummation of the Permitted Acquisition
            (other than with respect to a Minority Owned Joint Venture or CJI),
            to the extent such acquisition was a stock acquisition, the Person
            so acquired is merged with and into the Borrower or its Subsidiary,
            with the Borrower or such Subsidiary, as the case may be, being the
            survivor of such merger; (6) the aggregate amount of the purchase
            price for all Permitted Acquisitions (or series of related
            acquisitions) and Minority Owned Joint Ventures (other than CJI)
            shall not exceed $50,000,000 in any fiscal year and shall not exceed
            $75,000,000 (with the amount of the purchase price for all Minority
            Owned Joint Ventures and CJI in any fiscal year or over the life of
            this Credit Agreement not to exceed the Investment amounts permitted
            under Sections 9.3(g) and 9.3(h), respectively); (7) the board of
            directors and the shareholders (if required by applicable law), or
            the equivalent, of each of the Borrower and the Person to be
            acquired has approved such merger, consolidation or acquisition and
            such Permitted Acquisition is otherwise considered "friendly"; (8)
            if the Permitted Acquisition is of a Significant Subsidiary, the
            Borrower complies with the requirements of Section 8.11 hereof with
            respect to the Significant Subsidiary so acquired; and (9) the
            Borrower has delivered to the Administrative Agent and the Lenders a
            certificate of the chief financial officer or treasurer of the
            Borrower (A) to the effect that the Borrower and its Subsidiaries,
            on a consolidated and consolidating basis, will be solvent upon the
            consummation of the Permitted Acquisition; (B) certifying and
            attaching a pro forma Compliance Certificate evidencing compliance
            with Section 10 hereof immediately prior to and immediately after
            giving effect to such Permitted Acquisition, and fairly presenting
            the financial condition of the Borrower and its Subsidiaries as of
            the date thereof and after giving effect to such Permitted
            Acquisition; and (C) to the effect that no Default or Event of
            Default then exists or would result after giving effect to the
            Permitted Acquisition.

                  9.5.2. DISPOSITION OF ASSETS. The Borrower will not, and will
            not permit any of its Subsidiaries to, become a party to or agree to
            or effect any disposition of assets, other than (a) the sale of
            inventory, the licensing of intellectual property and the
            disposition of obsolete assets, in each case in the ordinary course
            of business consistent with past practices; (b) the disposition of
            individual stores in the ordinary course of business consistent with
            past practices; and (c) dispositions with respect to Indebtedness
            permitted under Section 9.1(i) hereof.

            9.6. SALE AND LEASEBACK. The Borrower will not, and will not permit
      any of its Subsidiaries to, enter into any arrangement, directly or
      indirectly, whereby the Borrower or any Subsidiary of the Borrower shall
      sell or transfer any property owned by it in order then or thereafter to
      lease such property that the Borrower or any Subsidiary of the Borrower
      intends to use for substantially the same purpose as the property being
      sold or transferred.

<PAGE>

            9.7. COMPLIANCE WITH ENVIRONMENTAL LAWS. The Borrower will not, and
      will not permit any of its Subsidiaries to, in any manner that would
      violate any Environmental Law or bring such Real Estate in violation of
      any Environmental Law, (a) use any of the Real Estate or any portion
      thereof for the handling, processing, storage or disposal of Hazardous
      Substances, (b) cause or permit to be located on any of the Real Estate
      any underground tank or other underground storage receptacle for Hazardous
      Substances, (c) generate any Hazardous Substances on any of the Real
      Estate, (d) conduct any activity at any Real Estate or use any Real Estate
      in any manner so as to cause a release or threatened release of Hazardous
      Substances on, upon or into the Real Estate or (e) otherwise violate any
      Environmental Law or bring such Real Estate in violation of any
      Environmental Law, in each case which would have a Material Adverse
      Effect.

            9.8. EMPLOYEE BENEFIT PLANS. Except as could not, individually or in
      the aggregate, reasonably be expected to have a Material Adverse Effect,
      neither the Borrower nor any ERISA Affiliate will:

                  (a) engage in any "prohibited transaction" within the meaning
            of Section 406 of ERISA or Section 4975 of the Code which could
            result in a material liability for the Borrower or any of its
            Subsidiaries; or

                  (b) permit any Guaranteed Pension Plan to incur an
            "accumulated funding deficiency", as such term is defined in Section
            302 of ERISA, whether or not such deficiency is or may be waived; or

                  (c) fail to contribute to any Guaranteed Pension Plan to an
            extent which, or terminate any Guaranteed Pension Plan in a manner
            which, could result in the imposition of a lien or encumbrance on
            the assets of the Borrower or any of its Subsidiaries pursuant to
            Section 302(f) or Section 4068 of ERISA; or

                  (d) amend any Guaranteed Pension Plan in circumstances
            requiring the posting of security pursuant to Section 307 of ERISA
            or Section 401(a)(29) of the Code;

                  (e) permit or take any action which would result in the
            aggregate benefit liabilities (with the meaning of Section 4001 of
            ERISA) of all Guaranteed Pension Plans exceeding the value of the
            aggregate assets of such Plans, disregarding for this purpose the
            benefit liabilities and assets of any such Plan with assets in
            excess of benefit liabilities; or

                  (f) permit or take any action which would contravene any
            Applicable Pension Legislation.

            9.9. BUSINESS ACTIVITIES. The Borrower will not, and will not permit
      any of its Subsidiaries to, engage directly or indirectly (whether through
      Subsidiaries or otherwise) in any type of business other than the
      businesses conducted by them on the Closing Date and in related
      businesses.

<PAGE>

            9.10. TRANSACTIONS WITH AFFILIATES. The Borrower will not, and will
      not permit any of its Subsidiaries to, engage in any transaction with any
      Affiliate (other than for services as employees, officers and directors),
      including any contract, agreement or other arrangement providing for the
      furnishing of services to or by, providing for rental of real or personal
      property to or from, or otherwise requiring payments to or from any such
      Affiliate or, to the knowledge of the Borrower, any corporation,
      partnership, trust or other entity in which any such Affiliate has a
      substantial interest or is an officer, director, trustee or partner, on
      terms more favorable to such Person than would have been obtainable on an
      arm's-length basis in the ordinary course of business.

      10. FINANCIAL COVENANTS.

      The Borrower covenants and agrees that, so long as any Loan, Unpaid
Reimbursement Obligation, Letter of Credit or Note is outstanding or any Lender
has any obligation to make any Loans or the Issuing Lender has any obligation to
issue, extend, amend or renew any Letters of Credit:

            10.1. FIXED CHARGE RATIO. The Borrower will not permit the Fixed
      Charge Ratio at the end of any Reference Period to be less than 2.50 to 1.

            10.2. LEVERAGE RATIO. The Borrower will not permit the Leverage
      Ratio at the end of any Reference Period to be greater than 1.50 to 1.

      11. CLOSING CONDITIONS.

      The obligations of the Lenders to make the initial Revolving Credit Loans
and of the Issuing Lender to issue any initial Letters of Credit shall be
subject to the satisfaction of the following conditions precedent on or prior to
October 16, 2003:

            11.1. LOAN DOCUMENTS. Each of the Loan Documents shall have been
      duly executed and delivered by the respective parties thereto, shall be in
      full force and effect and shall be in form and substance satisfactory to
      each of the Lenders. The Administrative Agent shall have received fully
      executed copies of each such document in sufficient quantities to deliver
      one (1) fully executed original of each such document to each Lender.

            11.2. CERTIFIED COPIES OF GOVERNING DOCUMENTS. The Administrative
      Agent shall have received from the Borrower and each of the Guarantors
      copies, certified by a duly authorized officer of such Person to be true
      and complete on the Closing Date, of each of its Governing Documents as in
      effect on such date of certification.

            11.3. CORPORATE OR OTHER ACTION. All corporate (or other) action
      necessary for the valid execution, delivery and performance by the
      Borrower and each of the Guarantors of this Credit Agreement and the other
      Loan Documents to which it is or is to become a party shall have been duly
      and effectively taken, and evidence thereof satisfactory to the Lenders
      shall have been provided to the Administrative Agent.

            11.4. INCUMBENCY CERTIFICATE. The Administrative Agent shall have
      received from the Borrower and each of the Guarantors an incumbency
      certificate, dated as of

<PAGE>

      the Closing Date, signed by a duly authorized officer of the Borrower or
      such Guarantor, and giving the name and bearing a specimen signature of
      each individual who shall be authorized: (a) to sign, in the name and on
      behalf of each of the Borrower or such Guarantor, each of the Loan
      Documents to which the Borrower or such Guarantor is or is to become a
      party; (b) in the case of the Borrower, to make Loan Requests and
      Conversion Requests and to apply for Letters of Credit; and (c) to give
      notices and to take other action on its behalf under the Loan Documents.

            11.5. CERTIFICATES OF LOCATION AND UCC SEARCH RESULTS. The
      Administrative Agent shall have received a completed and fully executed
      certificate of location and the results of UCC searches (and the
      equivalent thereof in all applicable foreign jurisdictions), indicating no
      Liens other than Permitted Liens and otherwise in form and substance
      satisfactory to the Administrative Agent.

            11.6. CERTIFICATES OF INSURANCE. The Administrative Agent shall have
      received a certificate of insurance from an independent insurance broker
      dated on or before the Closing Date and/or such other evidence of
      insurance as is satisfactory to the Administrative Agent, identifying
      insurers, types of insurance, insurance limits, and policy terms, and
      otherwise describing the insurance obtained in accordance with the
      provisions of the Loan Documents.

            11.7. OPINION OF COUNSEL. The Administrative Agent shall have
      received a favorable legal opinion addressed to the Lenders and the
      Administrative Agent, dated as of the Closing Date and in sufficient
      quantities to deliver one (1) original of each such opinion to each
      Lender, in form and substance satisfactory to the Administrative Agent,
      from:

                  (a) Latham & Watkins, counsel to the Borrower and the
            Guarantors; and

                  (b) Venable LLP, Maryland counsel to the Borrower.

            11.8. PAYMENT OF FEES. The Borrower shall have paid to the Lenders
      or the Administrative Agent, as appropriate, the Fees pursuant to Sections
      5.1 and 5.2.

            11.9. TERMINATION OF EXISTING CREDIT FACILITY. The Administrative
      Agent shall have received evidence that the existing Revolving Credit
      Agreement by and among the Borrower, Fleet, the lenders thereto and Fleet,
      as administrative agent, dated as of February 27, 2001 has been terminated
      and all obligations thereunder have been discharged.

            11.10. CLOSING CERTIFICATE. The Borrower shall have delivered to the
      Administrative Agent a certificate, dated as of the Closing Date, stating
      that, as of such date (a) the representations and warranties set forth
      herein or in any other Loan Document are true and correct, and (b) no
      Default or Event of Default has occurred and is continuing.

            11.11. PRO FORMA COMPLIANCE CERTIFICATE. The Borrower shall have
      delivered to the Administrative Agent and each of the Lenders a statement
      certified by the chief

<PAGE>

      financial officer or treasurer of the Borrower in substantially the form
      of Exhibit C hereto (a "Compliance Certificate") and setting forth in
      reasonable detail computations evidencing pro forma compliance as of the
      Balance Sheet Date with the covenants contained in Section 10.

      12. CONDITIONS TO ALL BORROWINGS.

      The obligations of the Lenders to make any Loan and of the Issuing Lender
to issue, extend, amend or renew any Letter of Credit, in each case whether on
or after the Closing Date, shall also be subject to the satisfaction of the
following conditions precedent:

            12.1. REPRESENTATIONS TRUE; NO EVENT OF DEFAULT. Each of the
      representations and warranties of any of the Borrower and its Subsidiaries
      contained in this Credit Agreement, the other Loan Documents or in any
      document or instrument delivered pursuant to or in connection with this
      Credit Agreement shall be true as of the date as of which they were made
      and shall also be true at and as of the time of the making of such Loan or
      the issuance, extension, amendment or renewal of such Letter of Credit,
      with the same effect as if made at and as of that time (except to the
      extent of changes resulting from transactions contemplated or permitted by
      this Credit Agreement and the other Loan Documents and changes occurring
      in the ordinary course of business that singly or in the aggregate are not
      materially adverse, and to the extent that such representations and
      warranties relate expressly to an earlier date) and no Default or Event of
      Default shall have occurred and be continuing.

            12.2. NO LEGAL IMPEDIMENT. No change shall have occurred in any law
      or regulations thereunder or interpretations thereof that in the
      reasonable opinion of any Lender would make it illegal for such Lender to
      make such Loan or to participate in the issuance, extension, amendment or
      renewal of such Letter of Credit or in the reasonable opinion of the
      Administrative Agent would make it illegal for the Issuing Lender to
      issue, extend, amend or renew such Letter of Credit.

            12.3. PROCEEDINGS AND DOCUMENTS. All proceedings in connection with
      the transactions contemplated by this Credit Agreement, the other Loan
      Documents and all other documents incident thereto shall be satisfactory
      in substance and in form to the Lenders and to the Administrative Agent
      and the Administrative Agent's Special Counsel, and the Lenders, the
      Administrative Agent and such counsel shall have received all information
      and such counterpart originals or certified or other copies of such
      documents as the Administrative Agent may reasonably request.

      13. EVENTS OF DEFAULT; ACCELERATION; ETC.

            13.1. EVENTS OF DEFAULT AND ACCELERATION. If any of the following
      events ("Events of Default" or, if the giving of notice or the lapse of
      time or both is required, then, prior to such notice or lapse of time,
      "Defaults") shall occur:

                  (a) the Borrower shall fail to pay any principal of the Loans
            or any Reimbursement Obligation when the same shall become due and
            payable (including, without limitation, under and pursuant to
            Section 3.2(a) and (b)),

<PAGE>

            whether at the stated date of maturity or any accelerated date of
            maturity or at any other date fixed for payment;

                  (b) the Borrower or any of its Subsidiaries shall fail to pay
            any interest on the Loans, any Fees, or other sums due hereunder or
            under any of the other Loan Documents, within three (3) Business
            Days after the same shall become due and payable, whether at the
            stated date of maturity or any accelerated date of maturity or at
            any other date fixed for payment;

                  (c) the Borrower shall fail to comply with any of its
            covenants contained in Section 8.1, the first sentence of Section
            8.4.1, the first sentence of Section 8.5, Sections 9.1 - 9.6 or
            Section 10;

                  (d) the Borrower or any of its Subsidiaries shall fail to
            perform any term, covenant or agreement contained herein or in any
            of the other Loan Documents (other than those specified elsewhere in
            this Section 13.1) for thirty (30) days after written notice of such
            failure has been given to the Borrower by the Administrative Agent;

                  (e) any representation or warranty of the Borrower or any of
            its Subsidiaries (whether in this Credit Agreement or any of the
            other Loan Documents or in any other document or instrument
            delivered pursuant to or in connection with this Credit Agreement)
            shall prove to have been false in any material respect upon the date
            when made or deemed to have been made or repeated;

                  (f) the Borrower or any of its Subsidiaries shall fail to pay
            at maturity, or within any applicable period of grace, any
            obligation for borrowed money or credit received or in respect of
            any Capitalized Leases, in an aggregate principal amount in excess
            of $5,000,000, or fail to observe or perform any material term,
            covenant or agreement contained in any agreement by which it is
            bound, evidencing or securing borrowed money or credit received or
            in respect of any Capitalized Leases, in an aggregate principal
            amount in excess of $5,000,000, for such period of time as would
            permit (assuming the giving of appropriate notice if required) the
            holder or holders thereof or of any obligations issued thereunder to
            accelerate the maturity thereof, or any such holder or holders shall
            rescind or shall have a right to rescind the purchase of any such
            obligations;

                  (g) the Borrower or any of its Subsidiaries shall make an
            assignment for the benefit of creditors, or admit in writing its
            inability to pay or generally fail to pay its debts as they mature
            or become due, or shall petition or apply for the appointment of a
            trustee or other custodian, liquidator or receiver of the Borrower
            or any of its Subsidiaries or of any substantial part of the assets
            of the Borrower or any of its Subsidiaries or shall commence any
            case or other proceeding relating to the Borrower or any of its
            Subsidiaries under any bankruptcy, reorganization, arrangement,
            insolvency, readjustment of debt, dissolution or liquidation or
            similar law of any jurisdiction, now or hereafter in

<PAGE>

            effect, or shall take any action to authorize or in furtherance of
            any of the foregoing, or if any such petition or application shall
            be filed or any such case or other proceeding shall be commenced
            against the Borrower or any of its Subsidiaries and the Borrower or
            any of its Subsidiaries shall indicate its approval thereof, consent
            thereto or acquiescence therein or such petition or application
            shall not have been dismissed within sixty (60) days following the
            filing thereof;

                  (h) a decree or order is entered appointing any such trustee,
            custodian, liquidator or receiver or adjudicating the Borrower or
            any of its Subsidiaries bankrupt or insolvent, or approving a
            petition in any such case or other proceeding, or a decree or order
            for relief is entered in respect of the Borrower or any Subsidiary
            of the Borrower in an involuntary case under federal bankruptcy laws
            as now or hereafter constituted;

                  (i) there shall remain in force, undischarged, unsatisfied and
            unstayed, for more than sixty days, whether or not consecutive, any
            final judgment against the Borrower or any of its Subsidiaries that,
            with other outstanding final judgments, undischarged, against the
            Borrower or any of its Subsidiaries exceeds in the aggregate
            $5,000,000;

                  (j) if any of the Loan Documents shall be cancelled,
            terminated, revoked or rescinded, in each case otherwise than in
            accordance with the terms thereof or with the express prior written
            agreement, consent or approval of the Lenders, or any action at law,
            suit or in equity or other legal proceeding to cancel, revoke or
            rescind any of the Loan Documents shall be commenced by or on behalf
            of the Borrower or any of its Subsidiaries party thereto or any of
            their respective stockholders, or any court or any other
            governmental or regulatory authority or agency of competent
            jurisdiction shall make a determination that, or issue a judgment,
            order, decree or ruling to the effect that, any one or more of the
            Loan Documents is illegal, invalid or unenforceable in accordance
            with the terms thereof;

                  (k) the Borrower or any ERISA Affiliate incurs any liability
            to the PBGC or a Guaranteed Pension Plan pursuant to Title IV of
            ERISA in an aggregate amount exceeding $5,000,000, or the Borrower
            or any ERISA Affiliate is assessed withdrawal liability pursuant to
            Title IV of ERISA by a Multiemployer Plan requiring aggregate annual
            payments exceeding $5,000,000, or any of the following occurs with
            respect to a Guaranteed Pension Plan: (i) an ERISA Reportable Event,
            or a failure to make a required installment or other payment (within
            the meaning of Section 302(f)(1) of ERISA), provided that the
            Administrative Agent determines in its reasonable discretion that
            such event (A) could be expected to result in liability of the
            Borrower or any of its Subsidiaries to the PBGC or such Guaranteed
            Pension Plan in an aggregate amount exceeding $5,000,000 and (B)
            could constitute grounds for the termination of such Guaranteed
            Pension Plan by the PBGC, for the appointment by the appropriate
            United States District Court of a trustee to administer such
            Guaranteed Pension Plan or for the imposition of a lien in

<PAGE>

            favor of such Guaranteed Pension Plan; or (ii) the appointment by a
            United States District Court of a trustee to administer such
            Guaranteed Pension Plan; or (iii) the institution by the PBGC of
            proceedings to terminate such Guaranteed Pension Plan;

                  (l) the Borrower or any of its Subsidiaries is obligated to
            repurchase $5,000,000 or more of receivables of the type described
            in clause (g) of the definition of "Indebtedness" hereof, whether
            sold under a purchase facility or otherwise, or a termination event
            occurs in connection with any such sale or with respect to any such
            facility; or

                  (m) a Change of Control shall occur;

      then, and in any such event, so long as the same may be continuing, the
      Administrative Agent may, and upon the request of the Required Lenders
      shall, by notice in writing to the Borrower declare all amounts owing with
      respect to this Credit Agreement, the Notes and the other Loan Documents
      and all Reimbursement Obligations to be, and they shall thereupon
      forthwith become, immediately due and payable without presentment, demand,
      protest or other notice of any kind, all of which are hereby expressly
      waived by the Borrower; provided that in the event of any Event of Default
      specified in Sections 13.1(g) or 13.1(h), all such amounts shall become
      immediately due and payable automatically and without any requirement of
      notice from the Administrative Agent or any Lender.

            13.2. TERMINATION OF COMMITMENTS. If any one or more of the Events
      of Default specified in Section 13.1(g) or Section 13.1(h) shall occur,
      any unused portion of the credit hereunder shall forthwith terminate and
      each of the Lenders shall be relieved of all further obligations to make
      Loans to the Borrower and the Issuing Lender shall be relieved of all
      further obligations to issue, extend, amend or renew Letters of Credit. If
      any other Event of Default shall have occurred and be continuing, the
      Administrative Agent may and, upon the request of the Required Lenders,
      shall, by notice to the Borrower, terminate the unused portion of the
      credit hereunder, and upon such notice being given such unused portion of
      the credit hereunder shall terminate immediately and each of the Lenders
      shall be relieved of all further obligations to make Loans and the Issuing
      Lender shall be relieved of all further obligations to issue, extend,
      amend or renew Letters of Credit. No termination of the credit hereunder
      shall relieve the Borrower or any of its Subsidiaries of any of the
      Obligations.

            13.3. REMEDIES. In case any one or more of the Events of Default
      shall have occurred and be continuing, and whether or not the Lenders
      shall have accelerated the maturity of the Loans pursuant to Section 13.1,
      each Lender, if owed any amount with respect to the Loans or the
      Reimbursement Obligations, may, with the consent of the Administrative
      Agent and the Required Lenders but not otherwise, proceed to protect and
      enforce its rights by suit in equity, action at law or other appropriate
      proceeding, whether for the specific performance of any covenant or
      agreement contained in this Credit Agreement and the other Loan Documents
      or any instrument pursuant to which the Obligations to such Lender are
      evidenced, including as permitted by applicable law the obtaining of the
      ex parte appointment of a receiver, and, if such amount shall have

<PAGE>

      become due, by declaration or otherwise, proceed to enforce the payment
      thereof or any other legal or equitable right of such Lender. No remedy
      herein conferred upon any Lender or the Administrative Agent or the holder
      of any Note or purchaser of any Letter of Credit Participation is intended
      to be exclusive of any other remedy and each and every remedy shall be
      cumulative and shall be in addition to every other remedy given hereunder
      or now or hereafter existing at law or in equity or by statute or any
      other provision of law.

      14. THE AGENT.

            14.1. AUTHORIZATION.

                  (a) The Administrative Agent is authorized to take such action
            on behalf of each of the Lenders and to exercise all such powers as
            are hereunder and under any of the other Loan Documents and any
            related documents delegated to the Administrative Agent, together
            with such powers as are reasonably incident thereto, provided that
            no duties or responsibilities not expressly assumed herein or
            therein shall be implied to have been assumed by the Administrative
            Agent.

                  (b) The relationship between the Administrative Agent and each
            of the Lenders is that of an independent contractor. The use of the
            term "Administrative Agent" is for convenience only and is used to
            describe, as a form of convention, the independent contractual
            relationship between the Administrative Agent and each of the
            Lenders. Nothing contained in this Credit Agreement nor the other
            Loan Documents shall be construed to create an agency, trust or
            other fiduciary relationship between the Administrative Agent and
            any of the Lenders.

                  (c) As an independent contractor empowered by the Lenders to
            exercise certain rights and perform certain duties and
            responsibilities hereunder and under the other Loan Documents, the
            Administrative Agent is nevertheless a "representative" of the
            Lenders, as that term is defined in Article 1 of the Uniform
            Commercial Code, for purposes of actions for the benefit of the
            Lenders and the Administrative Agent with respect to all cash
            collateral for Letters of Credit described in Sections 4.2(b) and
            (c) hereof and guaranties contemplated by the Loan Documents.

            14.2. EMPLOYEES AND ADMINISTRATIVE AGENTS. The Administrative Agent
      may exercise its powers and execute its duties by or through employees or
      agents and shall be entitled to take, and to rely on, advice of counsel
      concerning all matters pertaining to its rights and duties under this
      Credit Agreement and the other Loan Documents. Prior to the existence of a
      Default or an Event of Default, the Administrative Agent may utilize the
      services of such Persons as the Administrative Agent in consultation with
      the Borrower may reasonably determine, and all reasonable fees and
      expenses of any such Persons shall be paid by the Borrower. Following the
      occurrence and during the continuation of a Default or an Event of
      Default, the Administrative Agent may utilize the services of such Persons
      as the Administrative Agent in its sole discretion

<PAGE>

      may reasonably determine, and all reasonable fees and expenses of any such
      Persons shall be paid by the Borrower.

            14.3. NO LIABILITY. Neither the Administrative Agent nor any of its
      shareholders, directors, officers or employees nor any other Person
      assisting them in their duties nor any agent or employee thereof, shall be
      liable for any waiver, consent or approval given or any action taken, or
      omitted to be taken, in good faith by it or them hereunder or under any of
      the other Loan Documents, or in connection herewith or therewith, or be
      responsible for the consequences of any oversight or error of judgment
      whatsoever, except that the Administrative Agent or such other Person, as
      the case may be, may be liable for losses due to its willful misconduct or
      gross negligence.

            14.4. NO REPRESENTATIONS.

                  14.4.1. GENERAL. The Administrative Agent shall not be
            responsible for the execution or validity or enforceability of this
            Credit Agreement, the Notes, the Letters of Credit, any of the other
            Loan Documents or any instrument at any time constituting, or
            intended to constitute, cash collateral for Letters of Credit
            described in Sections 4.2(b) and (c) hereof for the Notes, or for
            the value of any such cash collateral for Letters of Credit or for
            the validity, enforceability or collectability of any such amounts
            owing with respect to the Notes, or for any recitals or statements,
            warranties or representations made herein or in any of the other
            Loan Documents or in any certificate or instrument hereafter
            furnished to it by or on behalf of the Borrower or any of its
            Subsidiaries, or be bound to ascertain or inquire as to the
            performance or observance of any of the terms, conditions, covenants
            or agreements herein or in any instrument at any time constituting,
            or intended to constitute, cash collateral for Letters of Credit
            described in Sections 4.2(b) and (c) hereof for the Notes or to
            inspect any of the properties, books or records of the Borrower or
            any of its Subsidiaries. The Administrative Agent shall not be bound
            to ascertain whether any notice, consent, waiver or request
            delivered to it by the Borrower or any holder of any of the Notes
            shall have been duly authorized or is true, accurate and complete.
            The Administrative Agent has not made nor does it now make any
            representations or warranties, express or implied, nor does it
            assume any liability to the Lenders, with respect to the credit
            worthiness or financial conditions of the Borrower or any of its
            Subsidiaries. Each Lender acknowledges that it has, independently
            and without reliance upon the Administrative Agent or any other
            Lender, and based upon such information and documents as it has
            deemed appropriate, made its own credit analysis and decision to
            enter into this Credit Agreement.

                  14.4.2. CLOSING DOCUMENTATION, ETC. For purposes of
            determining compliance with the conditions set forth in Section 11,
            each Lender that has executed this Credit Agreement shall be deemed
            to have consented to, approved or accepted, or to be satisfied with,
            each document and matter either sent, or made available, by the
            Administrative Agent or the Arranger to such Lender for consent,
            approval, acceptance or satisfaction, or required thereunder to be
            to be

<PAGE>

            consent to or approved by or acceptable or satisfactory to such
            Lender, unless an officer of the Administrative Agent or the
            Arranger active upon the Borrower's account shall have received
            notice from such Lender prior to the Closing Date specifying such
            Lender's objection thereto and such objection shall not have been
            withdrawn by notice to the Administrative Agent or the Arranger to
            such effect on or prior to the Closing Date.

            14.5. PAYMENTS.

                  14.5.1. PAYMENTS TO ADMINISTRATIVE AGENT. A payment by the
            Borrower to the Administrative Agent hereunder or any of the other
            Loan Documents for the account of any Lender shall constitute a
            payment to such Lender. The Administrative Agent agrees promptly to
            distribute to each Lender such Lender's pro rata share of payments
            received by the Administrative Agent for the account of the Lenders
            except as otherwise expressly provided herein or in any of the other
            Loan Documents.

                  14.5.2. DISTRIBUTION BY ADMINISTRATIVE AGENT. If in the
            opinion of the Administrative Agent the distribution of any amount
            received by it in such capacity hereunder, under the Notes or under
            any of the other Loan Documents might involve it in liability, it
            may refrain from making distribution until its right to make
            distribution shall have been adjudicated by a court of competent
            jurisdiction. If a court of competent jurisdiction shall adjudge
            that any amount received and distributed by the Administrative Agent
            is to be repaid, each Person to whom any such distribution shall
            have been made shall either repay to the Administrative Agent its
            proportionate share of the amount so adjudged to be repaid or shall
            pay over the same in such manner and to such Persons as shall be
            determined by such court.

                  14.5.3. DELINQUENT LENDERS. Notwithstanding anything to the
            contrary contained in this Credit Agreement or any of the other Loan
            Documents, any Lender that fails (a) to make available to the
            Administrative Agent its pro rata share of any Loan or to purchase
            any Letter of Credit Participation or (b) to comply with the
            provisions of Section 16.1 with respect to making dispositions and
            arrangements with the other Lenders, where such Lender's share of
            any payment received, whether by setoff or otherwise, is in excess
            of its pro rata share of such payments due and payable to all of the
            Lenders, in each case as, when and to the full extent required by
            the provisions of this Credit Agreement, shall be deemed delinquent
            (a "Delinquent Lender") and shall be deemed a Delinquent Lender
            until such time as such delinquency is satisfied. A Delinquent
            Lender shall be deemed to have assigned any and all payments due to
            it from the Borrower, whether on account of outstanding Loans,
            Unpaid Reimbursement Obligations, interest, fees or otherwise, to
            the remaining nondelinquent Lenders for application to, and
            reduction of, their respective pro rata shares of all outstanding
            Loans and Unpaid Reimbursement

<PAGE>

            Obligations. The Delinquent Lender hereby authorizes the
            Administrative Agent to distribute such payments to the
            nondelinquent Lenders in proportion to their respective pro rata
            shares of all outstanding Loans and Unpaid Reimbursement
            Obligations. A Delinquent Lender shall be deemed to have satisfied
            in full a delinquency when and if, as a result of application of the
            assigned payments to all outstanding Loans and Unpaid Reimbursement
            Obligations of the nondelinquent Lenders, the Lenders' respective
            pro rata shares of all outstanding Loans and Unpaid Reimbursement
            Obligations have returned to those in effect immediately prior to
            such delinquency and without giving effect to the nonpayment causing
            such delinquency.

            14.6. HOLDERS OF NOTES. The Administrative Agent may deem and treat
      the payee of any Note or the purchaser of any Letter of Credit
      Participation as the absolute owner or purchaser thereof for all purposes
      hereof until it shall have been furnished in writing with a different name
      by such payee or by a subsequent holder, assignee or transferee.

            14.7. INDEMNITY. The Lenders ratably agree hereby to indemnify and
      hold harmless the Administrative Agent and its affiliates from and against
      any and all claims, actions and suits (whether groundless or otherwise),
      losses, damages, costs, expenses (including any expenses for which the
      Administrative Agent or such affiliate has not been reimbursed by the
      Borrower as required by Section 16.2), and liabilities of every nature and
      character arising out of or related to this Credit Agreement, the Notes,
      or any of the other Loan Documents or the transactions contemplated or
      evidenced hereby or thereby, or the Administrative Agent's actions taken
      hereunder or thereunder, except to the extent that any of the same shall
      be directly caused by the Administrative Agent's willful misconduct or
      gross negligence.

            14.8. ADMINISTRATIVE AGENT AS LENDER. In its individual capacity,
      Fleet shall have the same obligations and the same rights, powers and
      privileges in respect to its Commitment and the Loans made by it, and as
      the holder of any of the Notes and as the purchaser of any Letter of
      Credit Participations, as it would have were it not also the
      Administrative Agent.

            14.9. RESIGNATION. The Administrative Agent may resign at any time
      by giving sixty (60) days prior written notice thereof to the Lenders and
      the Borrower. Upon any such resignation, the Required Lenders shall have
      the right to appoint a successor Administrative Agent. Unless a Default or
      Event of Default shall have occurred and be continuing, such successor
      Administrative Agent shall be reasonably acceptable to the Borrower. If no
      successor Administrative Agent shall have been so appointed by the
      Required Lenders and shall have accepted such appointment within thirty
      (30) days after the retiring Administrative Agent's giving of notice of
      resignation, then the retiring Administrative Agent may, on behalf of the
      Lenders, appoint a successor Administrative Agent, which shall be a
      financial institution having a rating of not less than A or its equivalent
      by S&P. Upon the acceptance of any appointment as Administrative Agent
      hereunder by a successor Administrative Agent, such successor
      Administrative Agent shall thereupon 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. After any retiring Administrative
      Agent's resignation, the provisions of this Credit Agreement and the other
      Loan Documents shall continue in effect for its

<PAGE>

      benefit in respect of any actions taken or omitted to be taken by it while
      it was acting as Administrative Agent.

            14.10. NOTIFICATION OF DEFAULTS AND EVENTS OF DEFAULT. Each Lender
      hereby agrees that, upon learning of the existence of a Default or an
      Event of Default, it shall promptly notify the Administrative Agent
      thereof. The Administrative Agent hereby agrees that upon receipt of any
      notice under this Section 14.10 it shall promptly notify the other Lenders
      of the existence of such Default or Event of Default.

      15. ASSIGNMENT AND PARTICIPATION.

            15.1. CONDITIONS TO ASSIGNMENT BY LENDERS. Except as provided
      herein, each Lender may assign to one or more Eligible Assignees, all or a
      portion of its interests, rights and obligations under this Credit
      Agreement (including all or a portion of its Commitment Percentage and
      Commitment and the same portion of the Loans at the time owing to it, the
      Notes held by it and its participating interest in the risk relating to
      any Letters of Credit); provided that (a) each of the Administrative Agent
      and, unless a Default or Event of Default shall have occurred and be
      continuing, the Borrower shall have given its prior written consent to
      such assignment, which consent, in the case of the Borrower, will not be
      unreasonably withheld; except that the consent of the Borrower or the
      Administrative Agent shall not be required in connection with any
      assignment by a Lender to (i) an existing Lender or (ii) a Lender
      Affiliate of such Lender, (b) each assignment (or, in the case of
      assignments by a Lender to its Lender Affiliates, the aggregate holdings
      of such Lender and its Lender Affiliates after giving effect to such
      assignments), shall be in an amount which, if less than all of such
      assigning Lender's rights and obligations under this Credit Agreement, is
      a whole multiple of $5,000,000 or a lesser amount agreed to by the
      Administrative Agent, the Borrower and such assigning Lender, and (c) the
      parties to such assignment shall execute and deliver to the Administrative
      Agent, for recording in the Register (as hereinafter defined), an
      Assignment and Acceptance, substantially in the form of Exhibit D hereto
      (an "Assignment and Acceptance"), together with any Notes subject to such
      assignment. Upon such execution, delivery, acceptance and recording, from
      and after the effective date specified in each Assignment and Acceptance,
      which effective date shall be at least five (5) Business Days after the
      execution thereof, (y) the assignee thereunder shall be a party hereto
      and, to the extent provided in such Assignment and Acceptance, have the
      rights and obligations of a Lender hereunder, and (z) the assigning Lender
      shall, to the extent provided in such assignment and upon payment to the
      Administrative Agent of the registration fee referred to in Section 15.3,
      be released from its obligations under this Credit Agreement.

            15.2. CERTAIN REPRESENTATIONS AND WARRANTIES; LIMITATIONS;
      COVENANTS. By executing and delivering an Assignment and Acceptance, the
      parties to the assignment thereunder confirm to and agree with each other
      and the other parties hereto that the representations and warranties and
      agreements set forth in Section 3 of the Assignment and Acceptance are
      true and correct as of the date such Assignment and Acceptance is
      executed.

<PAGE>

            15.3. REGISTER. The Administrative Agent shall maintain a copy of
      each Assignment and Acceptance delivered to it and a register or similar
      list (the "Register") for the recordation of the names and addresses of
      the Lenders and the Commitment Percentage of, and principal amount of the
      Revolving Credit Loans owing to and Letter of Credit Participations
      purchased by, the Lenders from time to time. The entries in the Register
      shall be conclusive, in the absence of manifest error, and the Borrower,
      the Administrative Agent and the Lenders may treat each Person whose name
      is recorded in the Register as a Lender hereunder for all purposes of this
      Credit Agreement. The Register shall be available for inspection by the
      Borrower and the Lenders at any reasonable time and from time to time upon
      reasonable prior notice. Upon each such recordation, the assigning Lender
      agrees to pay to the Administrative Agent a registration fee in the sum of
      $3,500.

            15.4. NEW NOTES. Upon its receipt of an Assignment and Acceptance
      executed by the parties to such assignment, together with each Note
      subject to such assignment, the Administrative Agent shall record the
      information contained therein in the Register. Promptly upon the request
      of the assignee or the assignor thereunder, the Borrower, at its own
      expense, shall execute and deliver to the Administrative Agent, in
      exchange for each surrendered Note, a new Note to the order of such
      assignee in an amount equal to the amount assumed by such assignee
      pursuant to such Assignment and Acceptance and, if the assigning Lender
      has retained some portion of its obligations hereunder, a new Note to the
      order of the assigning Lender in an amount equal to the amount retained by
      it hereunder. Such new Notes shall provide that they are replacements for
      the surrendered Note(s), shall be in an aggregate principal amount equal
      to the aggregate principal amount of the surrendered Note(s), shall be
      dated the effective date of such Assignment and Acceptance and shall
      otherwise be in substantially the form of the assigned Notes. The
      surrendered Note(s) shall be cancelled and returned to the Borrower.

            15.5. PARTICIPATIONS. Each Lender may sell participations to one or
      more Lenders or other entities in all or a portion of such Lender's rights
      and obligations under this Credit Agreement and the other Loan Documents;
      provided that (a) each such participation shall be in an amount of not
      less than $2,500,000, (b) any such sale or participation shall not affect
      the rights and duties of the selling Lender hereunder to the Borrower and
      (c) the only rights granted to the participant pursuant to such
      participation arrangements with respect to waivers, amendments or
      modifications of the Loan Documents shall be the rights to approve
      waivers, amendments or modifications that would reduce the principal of or
      the interest rate on any Loans, extend the term or increase the amount of
      the Commitment of such Lender as it relates to such participant, reduce
      the amount of any Commitment Fee or Letter of Credit Fees to which such
      participant is entitled or extend any regularly scheduled payment date for
      principal or interest.

            15.6. ASSIGNEE OR PARTICIPANT AFFILIATED WITH THE BORROWER. If any
      assignee Lender is an Affiliate of the Borrower, then any such assignee
      Lender shall have no right to vote as a Lender hereunder or under any of
      the other Loan Documents for purposes of granting consents or waivers or
      for purposes of agreeing to amendments or other modifications to any of
      the Loan Documents or for purposes of making requests

<PAGE>

      to the Administrative Agent pursuant to Section 13.1 or Section 13.2, and
      the determination of the Required Lenders shall for all purposes of this
      Credit Agreement and the other Loan Documents be made without regard to
      such assignee Lender's interest in any of the Loans or Reimbursement
      Obligations. If any Lender sells a participating interest in any of the
      Loans or Reimbursement Obligations to a participant, and such participant
      is the Borrower or an Affiliate of the Borrower, then such transferor
      Lender shall promptly notify the Administrative Agent of the sale of such
      participation. A transferor Lender shall have no right to vote as a Lender
      hereunder or under any of the other Loan Documents for purposes of
      granting consents or waivers or for purposes of agreeing to amendments or
      modifications to any of the Loan Documents or for purposes of making
      requests to the Administrative Agent pursuant to Section 13.1 or Section
      13.2 to the extent that such participation is beneficially owned by the
      Borrower or any Affiliate of the Borrower, and the determination of the
      Required Lenders shall for all purposes of this Credit Agreement and the
      other Loan Documents be made without regard to the interest of such
      transferor Lender in the Loans or Reimbursement Obligations to the extent
      of such participation.

            15.7. MISCELLANEOUS ASSIGNMENT PROVISIONS. Any assigning Lender
      shall retain its rights to be indemnified pursuant to Section 16.3 with
      respect to any claims or actions arising prior to the date of such
      assignment. If any assignee Lender is not incorporated under the laws of
      the United States of America or any state thereof, it shall, prior to the
      date on which any interest or fees are payable hereunder or under any of
      the other Loan Documents for its account, deliver to the Borrower and the
      Administrative Agent certification satisfactory in form and substance to
      the Administrative Agent as to its exemption from deduction or withholding
      of any United States federal income taxes. If any Reference Lender
      transfers all of its interest, rights and obligations under this Credit
      Agreement, the Administrative Agent shall, in consultation with the
      Borrower and with the consent of the Borrower and the Required Lenders,
      appoint another Lender to act as a Reference Lender hereunder. Anything
      contained in this Section 15 to the contrary notwithstanding, any Lender
      may at any time pledge or assign a security interest in all or any portion
      of its interest and rights under this Credit Agreement (including all or
      any portion of its Notes) to secure obligations of such Lender, including
      any pledge or assignment to secure obligations to any of the twelve
      Federal Reserve Banks organized under Section 4 of the Federal Reserve
      Act, 12 U.S.C. Section 341. Any foreclosure or similar action by any
      Person in respect of such pledge or assignment shall be subject to the
      other provisions of this Section 15. No such pledge or the enforcement
      thereof shall release the pledgor Lender from its obligations hereunder or
      under any of the other Loan Documents, provide any voting rights hereunder
      to the pledgee thereof, or affect any rights or obligations of the
      Borrower or Administrative Agent hereunder.

            15.8. ASSIGNMENT BY BORROWER. The Borrower shall not assign or
      transfer any of its rights or obligations under any of the Loan Documents
      without the prior written consent of each of the Lenders.

      16. PROVISIONS OF GENERAL APPLICATION.

<PAGE>

            16.1. SETOFF. Regardless of the adequacy of any cash collateral for
      Letters of Credit described in Sections 4.2(b) and (c) hereof, following
      the occurrence and during the continuation of an Event of Default, any
      deposits or other sums credited by or due from any of the Lenders to the
      Borrower in the possession of such Lender may be applied to or set off
      against the payment of Obligations of the Borrower to such Lender. Each of
      the Lenders agree with each other Lender that (a) if an amount to be set
      off is to be applied to Indebtedness of the Borrower to such Lender, other
      than Indebtedness evidenced by the Notes held by such Lender or
      constituting Reimbursement Obligations owed to such Lender, such amount
      shall be applied ratably to such other Indebtedness and to the
      Indebtedness evidenced by all such Notes held by such Lender or
      constituting Reimbursement Obligations owed to such Lender, and (b) if
      such Lender shall receive from the Borrower, whether by voluntary payment,
      exercise of the right of setoff, counterclaim, cross action, enforcement
      of the claim evidenced by the Notes held by, or constituting Reimbursement
      Obligations owed to, such Lender by proceedings against the Borrower at
      law or in equity or by proof thereof in bankruptcy, reorganization,
      liquidation, receivership or similar proceedings, or otherwise, and shall
      retain and apply to the payment of the Note or Notes held by, or
      Reimbursement Obligations owed to, such Lender any amount in excess of its
      ratable portion of the payments received by all of the Lenders with
      respect to the Notes held by, and Reimbursement Obligations owed to, all
      of the Lenders, such Lender will make such disposition and arrangements
      with the other Lenders with respect to such excess, either by way of
      distribution, pro tanto assignment of claims, subrogation or otherwise as
      shall result in each Lender receiving in respect of the Notes held by it
      or Reimbursement Obligations owed it, its proportionate payment as
      contemplated by this Credit Agreement; provided that if all or any part of
      such excess payment is thereafter recovered from such Lender, such
      disposition and arrangements shall be rescinded and the amount restored to
      the extent of such recovery, but without interest.

            16.2. EXPENSES. The Borrower agrees to pay (a) any taxes (including
      any interest and penalties in respect thereto) payable by the
      Administrative Agent, any Issuing Lender, the Swing Line Lender or any of
      the Lenders (other than taxes based upon or measured by the income or
      profits of the Administrative Agent, any Issuing Lender, the Swing Line
      Lender or any Lender) on or with respect to the transactions contemplated
      by this Credit Agreement (the Borrower hereby agreeing to indemnify the
      Administrative Agent, each Issuing Lender, the Swing Line Lender and each
      Lender with respect thereto), (b) the reasonable fees, expenses and
      disbursements of the Administrative Agent's Special Counsel or any local
      counsel to the Administrative Agent incurred in connection with the
      preparation, syndication or administration of the Loan Documents and other
      instruments mentioned herein, each closing hereunder, any amendments,
      modifications, approvals, consents or waivers hereto or hereunder, or the
      cancellation of any Loan Document upon payment in full in cash of all of
      the Obligations or pursuant to any terms of such Loan Document for
      providing for such cancellation, (c) the reasonable fees, expenses and
      disbursements of the Administrative Agent or any of its Affiliates
      incurred by the Administrative Agent or such Affiliate in connection with
      the preparation, syndication, administration or interpretation of the Loan
      Documents and other instruments mentioned herein and subject to the
      limitations contained in the Fee Letter, (d) all reasonable out-of-pocket
      expenses (including without limitation reasonable attorneys' fees and
      costs, which attorneys

<PAGE>

      may be employees of any Lender, any Issuing Lender, the Swing Line Lender
      or the Administrative Agent, and reasonable consulting, accounting,
      appraisal, investment bankruptcy and similar professional fees and
      charges) incurred by any Lender, any Issuing Lender, the Swing Line Lender
      or the Administrative Agent in connection with (i) the enforcement of or
      preservation of rights under any of the Loan Documents against the
      Borrower or any of its Subsidiaries or the administration thereof after
      the occurrence of a Default or Event of Default and (ii) any litigation,
      proceeding or dispute whether arising hereunder or otherwise, in any way
      related to any Lender's, any Issuing Lender's, the Swing Line Lender's or
      the Administrative Agent's relationship with the Borrower or any of its
      Subsidiaries, except, in each case, to the extent resulting solely from
      the bad faith, willful misconduct or gross negligence of such party. The
      covenants contained in this Section 16.2 shall survive payment or
      satisfaction in full of all Obligations.

            16.3. INDEMNIFICATION. The Borrower agrees to indemnify and hold
      harmless the Administrative Agent, the Arranger, their affiliates, the
      Issuing Lender(s), the Swing Line Lender and the Lenders from and against
      any and all claims, actions and suits whether groundless or otherwise, and
      from and against any and all liabilities, losses, damages and expenses of
      every nature and character arising out of this Credit Agreement or any of
      the other Loan Documents or the transactions contemplated hereby
      including, without limitation, (a) any actual or proposed use by the
      Borrower or any of its Subsidiaries of the proceeds of any of the Loans or
      Letters of Credit, (b) the Borrower or any of its Subsidiaries entering
      into or performing this Credit Agreement or any of the other Loan
      Documents or (c) with respect to the Borrower and its Subsidiaries and
      their respective properties and assets, the violation of any Environmental
      Law or laws related to Hazardous Substances or any action, suit,
      proceeding or investigation in relation thereto, in each case including,
      without limitation, the reasonable fees and disbursements of counsel
      incurred in connection with any such investigation, litigation or other
      proceeding, except to the extent resulting from the bad faith, willful
      misconduct or gross negligence of such indemnified party. In litigation,
      or the preparation therefor, the Lenders, the Issuing Lender(s), the Swing
      Line Lender and the Administrative Agent and its affiliates shall be
      entitled to select their own counsel and, in addition to the foregoing
      indemnity, the Borrower agrees to pay promptly the reasonable fees and
      expenses of such counsel. If, and to the extent that the obligations of
      the Borrower under this Section 16.3 are unenforceable for any reason, the
      Borrower hereby agrees to make the maximum contribution to the payment in
      satisfaction of such obligations which is permissible under applicable
      law. The covenants contained in this Section 16.3 shall survive payment or
      satisfaction in full of all other Obligations.

            16.4. TREATMENT OF CERTAIN CONFIDENTIAL INFORMATION.

                  16.4.1. CONFIDENTIALITY. Each of the Lenders, the Issuing
            Lender(s), the Swing Line Lender and the Administrative Agent
            agrees, on behalf of itself and each of its affiliates, directors,
            officers, employees and representatives, to use reasonable
            precautions to keep confidential, in accordance with their customary
            procedures for handling confidential information of the same nature
            and in accordance with safe and sound banking practices, any
            non-public information

<PAGE>

            supplied to it by the Borrower or any of its Subsidiaries pursuant
            to this Credit Agreement that is identified by such Person as being
            confidential at the time the same is delivered to the Lenders, the
            Issuing Lender(s), the Swing Line Lender or the Administrative
            Agent, provided that nothing herein shall limit the disclosure of
            any such information (a) after such information shall have become
            public other than through a violation of this Section 16, (b) to the
            extent required by statute, rule, regulation or judicial process,
            (c) to counsel for any of the Lenders, any Issuing Lender, the Swing
            Line Lender or the Administrative Agent, (d) to bank examiners or
            any other regulatory authority having jurisdiction over any Lender,
            any Issuing Lender, the Swing Line Lender or the Administrative
            Agent, or to auditors or accountants, (e) to the Administrative
            Agent, any Issuing Lender, the Swing Line Lender, any Lender or any
            Financial Affiliate, (f) in connection with any litigation to which
            any one or more of the Lenders, any Issuing Lender, the Swing Line
            Lender, the Administrative Agent or any Financial Affiliate is a
            party, or in connection with the enforcement of rights or remedies
            hereunder or under any other Loan Document, (g) to a Lender
            Affiliate or a Subsidiary of the Administrative Agent, or (h) with
            the consent of the Borrower. Notwithstanding anything herein to the
            contrary, the Administrative Agent, each Lender and the respective
            Affiliates of each of the foregoing (and the respective partners,
            directors, officers, employees, agents, advisors and other
            representatives of the aforementioned Persons), and any other party,
            may disclose to any and all Persons, without limitation of any kind
            (a) any information with respect to the U.S. federal and state
            income tax treatment of the transactions contemplated hereby and any
            facts that may be relevant to understanding the U.S. federal or
            state income tax treatment of such transactions ("tax structure"),
            which facts shall not include for this purpose the names of the
            parties or any other Person named herein, or information that would
            permit identification of the parties or such other Persons, or any
            pricing terms or other nonpublic business or financial information
            that is unrelated to such tax treatment or tax structure, and (b)
            all materials of any kind (including opinions or other tax analyses)
            that are provided to the Borrowers, the Administrative Agent or such
            Lender relating to such tax treatment or tax structure.

                  16.4.2. PRIOR NOTIFICATION. Unless specifically prohibited by
            applicable law or court order, each of the Lenders, the Issuing
            Lender(s), the Swing Line Lender, the Financial Affiliate(s) and the
            Administrative Agent shall notify the Borrower of any request for
            disclosure of any such non-public information by any governmental
            agency or representative thereof (other than any such request in
            connection with an examination of the financial condition of such
            Lender by such governmental agency) or pursuant to legal process;
            provided, however, that in the event such disclosure is required
            pursuant to such order of a court or the order, request or demand of
            any administrative or regulatory agency or authority, such Lender,
            such Issuing Lender, the Swing Line Lender, such Financial Affiliate
            and the Administrative Agent will provide the Borrower with notice
            prior to its disclosure of the same in order to allow (to the extent
            practicable) sufficient time for the Borrower to respond to or
            defend such order, request or demand.

<PAGE>

                  16.4.3. OTHER. In no event shall any Lender, any Issuing
            Lender, the Swing Line Lender or the Administrative Agent be
            obligated or required to return any materials furnished to it or any
            Financial Affiliate by the Borrower or any of its Subsidiaries. The
            obligations of each Lender under this Section 16 shall supersede and
            replace the obligations of such Lender under any confidentiality
            letter in respect of this financing signed and delivered by such
            Lender to the Borrower prior to the date hereof and shall be binding
            upon any assignee of, or purchaser of any participation in, any
            interest in any of the Loans or Reimbursement Obligations from any
            Lender.

            16.5. SURVIVAL OF COVENANTS, ETC. All covenants, agreements,
      representations and warranties made herein, in the Notes, in any of the
      other Loan Documents or in any documents or other papers delivered by or
      on behalf of the Borrower or any of its Subsidiaries pursuant hereto shall
      be deemed to have been relied upon by the Lenders, the Issuing Lender(s),
      the Swing Line Lender and the Administrative Agent, notwithstanding any
      investigation heretofore or hereafter made by any of them, and shall
      survive the making by the Lenders of any of the Loans and the issuance,
      extension, amendment or renewal of any Letters of Credit, as herein
      contemplated, and shall continue in full force and effect so long as any
      Letter of Credit or any amount due under this Credit Agreement or the
      Notes or any of the other Loan Documents remains outstanding or any Lender
      has any obligation to make any Loans or the Issuing Lender has any
      obligation to issue, extend, amend or renew any Letter of Credit, and for
      such further time as may be otherwise expressly specified in this Credit
      Agreement.

            16.6. NOTICES. Except as otherwise expressly provided in this Credit
      Agreement, all notices and other communications made or required to be
      given pursuant to this Credit Agreement or the Notes or any Letter of
      Credit Applications shall be in writing and shall be delivered in hand,
      mailed by United States registered or certified first class mail, postage
      prepaid, sent by overnight courier, or sent by telegraph, telecopy,
      facsimile or telex and confirmed by delivery via courier or postal
      service, addressed as follows:

            (a) if to the Borrower, at 516 West 34th Street, New York, New York
      10001, Attention: Nancy Walsh, Treasurer, with a copy to the General
      Counsel of the Borrower, or at such other address for notice as the
      Borrower shall last have furnished in writing to the Person giving the
      notice;

            (b) if to the Administrative Agent, at 40 Broad Street, Boston,
      Massachusetts 02110, USA, Attention: Linda Alto, Director, or such other
      address for notice as the Administrative Agent shall last have furnished
      in writing to the Person giving the notice; and

            (c) if to any Lender, at such Lender's address set forth on Schedule
      1 hereto, or such other address for notice as such Lender shall have last
      furnished in writing to the Person giving the notice.

<PAGE>

      Any such notice or demand shall be deemed to have been duly given or made
and to have become effective (i) if delivered by hand, overnight courier or
facsimile to a responsible officer of the party to which it is directed, at the
time of the receipt thereof by such officer or the sending of such facsimile and
(ii) if sent by registered or certified first-class mail, postage prepaid, on
the third Business Day following the mailing thereof. Any notice or other
communication to be made hereunder or under the Notes or any Letter of Credit
Applications, even if otherwise required to be in writing under other provisions
of this Credit Agreement, the Notes or any Letter of Credit Applications, may
alternatively be made in an electronic record transmitted electronically under
such authentication and other procedures as the parties hereto may from time to
time agree in writing (but not an electronic record), and such electronic
transmission shall be effective at the time set forth in such procedures. Unless
otherwise expressly provided in such procedures, such an electronic record shall
be equivalent to a writing under the other provisions of this Credit Agreement,
the Notes or any Letter of Credit Applications, and such authentication, if made
in compliance with the procedures so agreed by the parties hereto in writing
(but not an electronic record), shall be equivalent to a signature under the
other provisions of this Credit Agreement, the Notes or any Letter of Credit
Applications.

            16.7. GOVERNING LAW. THIS CREDIT AGREEMENT AND, EXCEPT AS OTHERWISE
      SPECIFICALLY PROVIDED THEREIN, EACH OF THE OTHER LOAN DOCUMENTS ARE
      CONTRACTS UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL FOR ALL
      PURPOSES BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF SAID
      STATE OF NEW YORK (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF
      LAW OTHER THAN GENERAL OBLIGATIONS LAW SECTION 5-1401 AND SECTION
      5-1402). THE BORROWER AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS
      CREDIT AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS MAY BE BROUGHT IN THE
      COURTS OF THE STATE OF NEW YORK OR ANY FEDERAL COURT SITTING THEREIN AND
      CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURT AND SERVICE OF
      PROCESS IN ANY SUCH SUIT BEING MADE UPON THE BORROWER BY MAIL AT THE
      ADDRESS SPECIFIED IN SECTION 16.6. THE BORROWER HEREBY WAIVES ANY
      OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH SUIT
      OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT COURT.

            16.8. HEADINGS. The captions in this Credit Agreement are for
      convenience of reference only and shall not define or limit the provisions
      hereof.

            16.9. COUNTERPARTS. This Credit Agreement and any amendment hereof
      may be executed in several counterparts and by each party on a separate
      counterpart, each of which when executed and delivered shall be an
      original, and all of which together shall constitute one instrument. In
      proving this Credit Agreement it shall not be necessary to produce or
      account for more than one such counterpart signed by the party against
      whom enforcement is sought. Delivery by facsimile by any of the parties
      hereto of an executed counterpart hereof or of any amendment or waiver
      hereto shall be as effective as an original executed counterpart hereof or
      of such amendment or waiver and shall

<PAGE>

      be considered a representation that an original executed counterpart
      hereof or such amendment or waiver, as the case may be, will be delivered.

            16.10. ENTIRE AGREEMENT, ETC. The Loan Documents and any other
      documents executed in connection herewith or therewith express the entire
      understanding of the parties with respect to the transactions contemplated
      hereby. Neither this Credit Agreement nor any term hereof may be changed,
      waived, discharged or terminated, except as provided in Section 16.12.

            16.11. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY
      WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM
      ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS CREDIT AGREEMENT, THE
      NOTES OR ANY OF THE OTHER LOAN DOCUMENTS, ANY RIGHTS OR OBLIGATIONS
      HEREUNDER OR THEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS
      OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL
      OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING ANY COURSE OF CONDUCT,
      COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF THE ADMINISTRATIVE AGENT, ANY
      ISSUING LENDER, THE SWING LINE LENDER OR ANY LENDER RELATING TO THE
      ADMINISTRATION OF THE LOANS OR ENFORCEMENT OF THE LOAN DOCUMENTS AND
      AGREES THAT IT WILL NOT SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER
      ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. Except as
      prohibited by law, each party hereto hereby waives any right it may have
      to claim or recover in any litigation referred to in the preceding
      sentence any special, exemplary, punitive or consequential damages or any
      damages other than, or in addition to, actual damages. The Borrower
      acknowledges and agrees that the Administrative Agent, the Issuing
      Lender(s), the Swing Line Lender and the Lenders have been induced to
      enter into this Credit Agreement and the other Loan Documents to which it
      is a party by, among other things, the waivers and certifications
      contained herein and that no representative, agent or attorney of any such
      party has represented to the Borrower that such party would not, in the
      event of litigation, seek to enforce the foregoing waivers.

            16.12. CONSENTS, AMENDMENTS, WAIVERS, ETC. Any consent or approval
      required or permitted by this Credit Agreement to be given by the Lenders
      may be given, and any term of this Credit Agreement, the other Loan
      Documents or any other instrument related hereto or mentioned herein may
      be amended, and the performance or observance by the Borrower or any of
      its Subsidiaries of any terms of this Credit Agreement, the other Loan
      Documents or such other instrument or the continuance of any Default or
      Event of Default may be waived (either generally or in a particular
      instance and either retroactively or prospectively) with, but only with,
      the written consent of the Borrower and the written consent of the
      Required Lenders. Notwithstanding the foregoing, no amendment,
      modification or waiver shall:

                  (a) without the written consent of the Borrower and each
            Lender directly affected thereby:

<PAGE>

                        (i) reduce or forgive the principal amount of any Loans
                  or Reimbursement Obligations, or reduce the rate of interest
                  on the Notes or the amount of the Commitment Fee or Letter of
                  Credit Fees, including, for purposes of calculation of the
                  Applicable Margin, as a result of a change in the definition
                  of Fixed Charge Ratio or any of the components thereof or the
                  method of calculation thereto (it being understood that any
                  change to the definition of Fixed Charge Ratio or any of the
                  components thereof or the method of calculation thereto for
                  purposes of calculating the covenants in Section 10 hereof
                  shall only require the written consent of the Borrower and the
                  Required Lenders), but excluding interest accruing pursuant to
                  Section 5.11.2 following the effective date of any waiver by
                  the Required Lenders of the Default or Event of Default
                  relating thereto;

                        (ii) increase the amount of such Lender's Commitment or
                  extend the expiration date of such Lender's Commitment; and

                        (iii) postpone or extend the Revolving Credit Loan
                  Maturity Date or any other regularly scheduled dates for
                  payments of principal of, or interest on, the Loans or
                  Reimbursement Obligations or any Fees or other amounts payable
                  to such Lender (it being understood that (A) a waiver of the
                  application of the default rate of interest pursuant to
                  Section 5.11.2, (B) any vote to rescind any acceleration made
                  pursuant to Section 13.1 of amounts owing with respect to the
                  Loans and other Obligations and (C) any modifications of the
                  provisions relating to amounts, timing or application of
                  prepayments of Loans and other Obligations shall require only
                  the approval of the Required Lenders);

                  (b) without the written consent of all of the Lenders, amend
            or waive this Section 16.12 or the definition of Required Lenders;

                  (c) without the written consent of the Administrative Agent,
            amend or waive Section 14, the amount or time of payment of the
            Administrative Agent's Fee payable for the Administrative Agent's
            account or any other provision applicable to the Administrative
            Agent; and

                  (d) without the written consent of the Swing Line Lender,
            amend or waive Section 2.6.2, the amount or time of payment of the
            Swing Line Loans or any other provision applicable to the Swing Line
            Lender; and

                  (e) without the written consent of the Issuing Lender, amend
            or waive any Letter of Credit Fees payable for the Issuing Lender's
            account or any other provision applicable to the Issuing Lender.

      No waiver shall extend to or affect any obligation not expressly waived or
      impair any right consequent thereon. No course of dealing or delay or
      omission on the part of the Administrative Agent, any Issuing Lender, the
      Swing Line Lender or any Lender in exercising any right shall operate as a
      waiver thereof or otherwise be prejudicial

<PAGE>

      thereto. No notice to or demand upon the Borrower shall entitle the
      Borrower to other or further notice or demand in similar or other
      circumstances.

            16.13. SEVERABILITY. The provisions of this Credit Agreement are
      severable and if any one clause or provision hereof shall be held invalid
      or unenforceable in whole or in part in any jurisdiction, then such
      invalidity or unenforceability shall affect only such clause or provision,
      or part thereof, in such jurisdiction, and shall not in any manner affect
      such clause or provision in any other jurisdiction, or any other clause or
      provision of this Credit Agreement in any jurisdiction.

<PAGE>

      IN WITNESS WHEREOF, the undersigned have duly executed this Credit
Agreement as of the date first set forth above.

                                    COACH, INC.

                                    By: ____________________________________
                                         Name: Nancy Walsh
                                         Title: Vice President and Treasurer

Coach, Inc.
Signature Page to Revolving Credit Agreement

<PAGE>

                                    FLEET NATIONAL BANK, individually and as
                                    Administrative Agent

                                    By: ___________________________________
                                         Name: Linda Alto
                                         Title: Director

                                    [Lenders--To be determined]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]