Document:

Credit Agreement

    Exhibit
      10.1

    
 

    EXECUTION
      COPY

    

    U.S.
      $400,000,000

     

    CREDIT
      AGREEMENT

     

    Dated
      as
      of March 13, 2006

     

    Among

     

    THE
      HERSHEY COMPANY,

    

    as Borrower,

    

    and

     

    THE
      INITIAL LENDERS NAMED HEREIN,

     

    as Initial Lenders,

     

    and

     

    CITIBANK,
      N.A.,

     

    as Administrative Agent,

     

    and

     

    BANK
      OF
      AMERICA, N.A.,

     

    as Syndication Agent,

     

    and

     

    UBS
      LOAN
      FINANCE LLC,

     

    as Documentation Agent,

     

    and

     

    CITIGROUP
      GLOBAL MARKETS INC.,

    

    and

    

    BANC
      OF
      AMERICA SECURITIES LLC,

     

    as
      Joint Lead Arrangers and Joint Book Managers,

    

    

    

    
      
        
          
          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

    

     

     

     

    

      TABLE
        OF CONTENTS

       

      
        
          	
                  ARTICLE
                    I DEFINITIONS AND ACCOUNTING TERMS

                

        

         

        
          
            	
                    SECTION
                      1.01.

                  	
                    Certain
                      Defined Terms

                  	
                    1

                  
	
                    SECTION
                      1.02.

                  	
                    Computation
                      of Time Periods 

                  	
                    13

                  
	
                    SECTION
                      1.03.

                  	
                    Accounting
                      Terms

                  	
                    13

                  

          

           

          
            
              	
                      ARTICLE
                        II AMOUNTS AND TERMS OF THE
                        ADVANCES

                    

            

             

            
              
                	
                        SECTION
                          2.01.

                      	
                        The
                          Revolving Credit Advances

                      	
                        13

                      
	
                        SECTION
                          2.02.

                      	
                        Making
                          the Revolving Credit Advances

                      	
                        14

                      
	
                        SECTION
                          2.03.

                      	
                        The
                          Competitive Bid Advances

                      	
                        15

                      
	
                        SECTION
                          2.04.

                      	
                        Fees

                      	
                        19

                      
	
                        SECTION
                          2.05.

                      	
                        Termination,
                          Reduction or Increase of the Commitments

                      	
                        20

                      
	
                        SECTION
                          2.06.

                      	
                        Repayment
                          of Revolving Credit Advances

                      	
                        23

                      
	
                        SECTION
                          2.07.

                      	
                        Interest
                          on Revolving Credit Advances

                      	
                        23

                      
	
                        SECTION
                          2.08.

                      	
                        Interest
                          Rate Determination

                      	
                        24

                      
	
                        SECTION
                          2.09.

                      	
                        Optional
                          Conversion of Revolving Credit Advances

                      	
                        25

                      
	
                        SECTION
                          2.10.

                      	
                        Optional
                          Prepayments of Revolving Credit Advances

                      	
                        26

                      
	
                        SECTION
                          2.11.

                      	
                        Increased
                          Costs

                      	
                        26

                      
	
                        SECTION
                          2.12.

                      	
                        Illegality

                      	
                        27

                      
	
                        SECTION
                          2.13.

                      	
                        Payments
                          and Computations

                      	
                        28

                      
	
                        SECTION
                          2.14.

                      	
                        Taxes

                      	
                        29

                      
	
                        SECTION
                          2.15.

                      	
                        Sharing
                          of Payments, Etc.

                      	
                        31

                      
	
                        SECTION
                          2.16.

                      	
                        Use
                          of Proceeds

                      	
                        31

                      
	
                        SECTION
                          2.17.

                      	
                        Mandatory
                          Assignment by a Lender; Mitigation

                      	
                        31

                      
	
                        SECTION
                          2.18.

                      	
                        Evidence
                          of Debt

                      	
                        32

                      

              

               

              
                
                  
                  

                

                
                  i

                  
                    

                  

                

                
                  
                  

                

              

               

               

               

               

              
                
                  	
                          ARTICLE
                            III CONDITIONS TO EFFECTIVENESS AND
                            LENDING

                        

                

                 

                
                  
                    	
                            SECTION
                              3.01.

                          	
                            Conditions
                              Precedent to Effectiveness of Sections 2.01 and 2.03

                          	
                            33

                          
	
                            SECTION
                              3.02.

                          	
                            Initial
                              Borrowing of Each Designated Subsidiary

                          	
                            34

                          
	
                            SECTION
                              3.03.

                          	
                            Conditions
                              Precedent to Each Revolving Credit Borrowing

                          	
                            35

                          
	
                            SECTION
                              3.04.

                          	
                            Conditions
                              Precedent to Each Competitive Bid Borrowing

                          	
                            36

                          
	
                            SECTION
                              3.05.

                          	
                            Determinations
                              Under Section 3.01

                          	
                            37

                          

                  

                   

                  
                    
                      	
                              ARTICLE
                                IV REPRESENTATIONS AND WARRANTIES

                            

                    

                     

                    
                      
                        	
                                SECTION
                                  4.01.

                              	
                                Representations
                                  and Warranties of the Company

                              	
                                37

                              

                      

                       

                      
                        
                          	
                                  ARTICLE
                                    V COVENANTS OF THE COMPANY

                                

                        

                         

                        
                          
                            	
                                    SECTION
                                      5.01.

                                  	
                                    Affirmative
                                      Covenants

                                  	
                                    39

                                  
	
                                    SECTION
                                      5.02.

                                  	
                                    Negative
                                      Covenants

                                  	
                                    42

                                  
	
                                    SECTION
                                      5.03.

                                  	
                                    Financial
                                      Covenant

                                  	
                                    43

                                  

                          

                           

                          
                            
                              	
                                      ARTICLE
                                        VI EVENTS OF DEFAULT

                                    

                            

                             

                            
                              
                                	
                                        SECTION
                                          6.01.

                                      	
                                        Events
                                          of Default

                                      	
                                        43

                                      

                              

                               

                              
                                
                                  	
                                          ARTICLE
                                            VII GUARANTY

                                        

                                

                                 

                                
                                  
                                    	
                                            SECTION
                                              7.01.

                                          	
                                            Guaranty

                                          	
                                            46

                                          
	
                                            SECTION
                                              7.02.

                                          	
                                            Guaranty
                                              Absolute

                                          	
                                            46

                                          
	
                                            SECTION
                                              7.03.

                                          	
                                            Waivers
                                              and Acknowledgments

                                          	
                                            47

                                          
	
                                            SECTION
                                              7.04.

                                          	
                                            Subrogation

                                          	
                                            47

                                          
	
                                            SECTION
                                              7.05.

                                          	
                                            Continuing
                                              Guaranty; Assignments Under the Credit
                                              Agreement

                                          	
                                            48

                                          
	
                                            SECTION
                                              7.06.

                                          	
                                            No
                                              Stay

                                          	
                                            48

                                          

                                  

                                   

                                  
                                    
                                      	
                                              ARTICLE
                                                VIII THE AGENT

                                            

                                    

                                     

                                    
                                      
                                        	
                                                SECTION
                                                  8.01.

                                              	
                                                Authorization
                                                  and Action

                                              	
                                                49

                                              
	
                                                SECTION
                                                  8.02.

                                              	
                                                Agent's
                                                  Reliance, Etc.

                                              	
                                                49

                                              
	
                                                SECTION
                                                  8.03.

                                              	
                                                Citibank
                                                  and Affiliates

                                              	
                                                49

                                              

                                      

                                       

                                      
                                        
                                          ii

                                        

                                        
                                          
                                          

                                          
                                            

                                          

                                        

                                        
                                          
                                          

                                        

                                      

                                       

                                       

                                      
                                        	
                                                SECTION
                                                  8.04.

                                              	
                                                Lender
                                                  Credit Decision

                                              	
                                                50

                                              
	
                                                SECTION
                                                  8.05.

                                              	
                                                Indemnification

                                              	
                                                50

                                              
	
                                                SECTION
                                                  8.06.

                                              	
                                                Successor
                                                  Agent

                                              	
                                                50

                                              

                                      

                                       

                                      
                                        
                                          	
                                                  ARTICLE
                                                    IX MISCELLANEOUS

                                                

                                        

                                         

                                        
                                          	
                                                  SECTION
                                                    9.01.

                                                	
                                                  Amendments,
                                                    Etc.

                                                	
                                                  51

                                                
	
                                                  SECTION
                                                    9.02.

                                                	
                                                  Notices,
                                                    Etc.

                                                	
                                                  51

                                                
	
                                                  SECTION
                                                    9.03.

                                                	
                                                  No
                                                    Waiver; Remedies

                                                	
                                                  52

                                                
	
                                                  SECTION
                                                    9.04.

                                                	
                                                  Costs
                                                    and Expenses

                                                	
                                                  52

                                                
	
                                                  SECTION
                                                    9.05.

                                                	
                                                  Right
                                                    of Set-off

                                                	
                                                  54

                                                
	
                                                  SECTION
                                                    9.06.

                                                	
                                                  Binding
                                                    Effect

                                                	
                                                  54

                                                
	
                                                  SECTION
                                                    9.07.

                                                	
                                                  Assignments,
                                                    Designations and Participations

                                                	
                                                  55

                                                
	
                                                  SECTION
                                                    9.08.

                                                	
                                                  Designated
                                                    Subsidiaries

                                                	
                                                  57

                                                
	
                                                  SECTION
                                                    9.09.

                                                	
                                                  Confidentiality

                                                	
                                                  58

                                                
	
                                                  SECTION
                                                    9.10.

                                                	
                                                  Governing
                                                    Law

                                                	
                                                  58

                                                
	
                                                  SECTION
                                                    9.11.

                                                	
                                                  Execution
                                                    in Counterparts

                                                	
                                                  58

                                                
	
                                                  SECTION
                                                    9.12.

                                                	
                                                  Jurisdiction,
                                                    Etc.

                                                	
                                                  58

                                                
	
                                                  SECTION
                                                    9.13.

                                                	
                                                  Patriot
                                                    Act

                                                	
                                                  59

                                                

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      
        
          iii

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      
        
          	
                  SCHEDULES

                

        

         

        
          
            	
                    Schedule
                      I

                  	
                     -

                  	
                    List
                      of Applicable Lending Offices

                  
	
                    Schedule
                      3.01(b)

                  	
                     -

                  	
                    Disclosed
                      Litigation

                  
	
                    Schedule
                      4.01(c)

                  	
                     -

                  	
                    Required
                      Authorizations and Approvals

                  

          

           

          
            
              	
                      EXHIBITS

                    

            

             

            
              	
                      Exhibit
                        A-1

                    	
                       -

                    	
                      Form
                        of Revolving Credit Note

                    
	
                      Exhibit
                        A-2

                    	
                       -

                    	
                      Form
                        of Competitive Bid Note

                    
	
                      Exhibit
                        B-1

                    	
                       -

                    	
                      Form
                        of Notice of Revolving Credit Borrowing

                    
	
                      Exhibit
                        B-2

                    	
                       -

                    	
                      Form
                        of Notice of Competitive Bid Borrowing

                    
	
                      Exhibit
                        C

                    	
                       -

                    	
                      Form
                        of Assignment and Acceptance

                    
	
                      Exhibit
                        D

                    	
                       -

                    	
                      Form
                        of Assumption Agreement

                    
	
                      Exhibit
                        E

                    	
                       - 

                    	
                      Form
                        of Designation Letter

                    
	
                      Exhibit
                        F

                    	
                       -

                    	
                      Form
                        of Acceptance by Process Agent

                    
	
                      Exhibit
                        G

                    	
                       -

                    	
                      Form
                        of Opinion of Burton H. Snyder, Senior Vice President, General
                        Counsel and
                        Secretary of the Company

                    
	
                      Exhibit
                        H

                    	
                       -

                    	
                      Form
                        of Opinion of Counsel to a Designated
                        Subsidiary

                    

            

          

        

      

      

    

     

     

     

     

     

     

    

    
      
        
          
            

             

          

          iv

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    CREDIT
      AGREEMENT

     

    Dated
      as
      of March 13, 2006

     

    THE
      HERSHEY COMPANY, a Delaware corporation (the "Company"),
      the
      banks, financial institutions and other institutional lenders (the "Initial
      Lenders")
      listed
      on the signature pages hereof, CITIBANK, N.A. ("Citibank"),
      as
      administrative agent (the "Agent")
      for
      the Lenders (as hereinafter defined), BANK OF AMERICA, N.A., as syndication
      agent, UBS LOAN FINANCE LLC, as documentation agent, and CITIGROUP GLOBAL
      MARKETS INC. and BANC OF AMERICA SECURITIES LLC, as joint lead arrangers and
      joint book managers (the "Arrangers"),
      agree
      as follows:

     

    ARTICLE
      I
  

    DEFINITIONS
      AND ACCOUNTING TERMS

     

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

     

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

     

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

     

    "Agent's
      Account"
      means
      the account of the Agent maintained by the Agent at Citibank with its office
      at
      Two Penn's Way, New Castle, Delaware 19720, Account No. 36852248,
      Attention: Bank Loan Syndications.

     

    "Applicable
      Lending Office"
      means,
      with respect to each Lender, such Lender's Domestic Lending Office in the case
      of a Base Rate Advance and such Lender's Eurodollar Lending Office in the case
      of a Eurodollar Rate Advance and, in the case of a Competitive Bid Advance,
      the
      office of such Lender notified by such Lender to the Agent as its Applicable
      Lending Office with respect to such Competitive Bid Advance.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          2

        

      

    

    

    "Applicable
      Margin"
      means
      (a) for Base Rate Advances, 0% per annum and (b) for Eurodollar Rate
      Advances, as of any date, a percentage per annum determined by reference to
      the
      Level in effect on such date as set forth below:

     

    
      	
              Level

            	
              Applicable
                Margin for Eurodollar Rate Advances

            
	
              Level
                1

            	
              0.160%

            
	
              Level
                2

            	
              0.200%

            
	
              Level
                3

            	
              0.240%

            
	
              Level
                4

            	
              0.330%

            
	
              Level
                5

            	
              0.410%

            
	
              Level
                6

            	
              0.625%

            

    

    

     

     

    "Applicable
      Percentage"
      means,
      as of any date, a percentage per annum determined by reference to the Level
      in
      effect on such date as set forth below:

     

    
      	
              Level

            	
              Applicable

              Percentage

            
	
              Level
                1

            	
              0.040%

            
	
              Level
                2

            	
              0.050%

            
	
              Level
                3

            	
              0.060%

            
	
              Level
                4

            	
              0.070%

            
	
              Level
                5

            	
              0.090%

            
	
              Level
                6

            	
              0.125%

            

    

     

    "Applicable
      Utilization Fee"
      means,
      as of any date that the aggregate Advances exceed 50% of the aggregate
      Commitments, a percentage per annum determined by reference to the Level in
      effect on such date as set forth below:

     

    
      	
              Level

            	
              Applicable

              Utilization
                Fee

            
	
              Level
                1

            	
              0.050%

            
	
              Level
                2

            	
              0.050%

            
	
              Level
                3

            	
              0.050%

            
	
              Level
                4

            	
              0.100%

            
	
              Level
                5

            	
              0.100%

            
	
              Level
                6

            	
              0.125%

            

    

     

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

     

    "Assuming
      Lender"
      means
      an Eligible Assignee not previously a Lender that becomes a Lender hereunder
      pursuant to Section 2.05(c).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        3

      

    

     

    "Assumption
      Agreement"
      means
      an agreement in substantially the form of Exhibit D hereto by which an
      Eligible Assignee agrees to become a Lender hereunder pursuant to Section
      2.05(c), agreeing to be bound by all obligations of a Lender
      hereunder.

     

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

     

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

     

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

     

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

     

    "Borrower"
      means
      the Company or any Designated Subsidiary, as the context requires.

     

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

     

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

     

    "Change
      of Control"
      means a
      change in the voting power of Hershey Trust Company, as trustee for the Milton
      Hershey School (the "Hershey
      Trust"),
      such
      that either (A) (i) it no longer controls a majority of the voting
      power of the Company's Voting Stock and (ii) at the same time, another
      Person or group of Persons within the meaning of Section 13 or 14 of the
      Securities Exchange Act of 1934, as amended, controls a percentage of the voting
      power of the Company's Voting Stock in excess of the percentage controlled
      by
      the Hershey Trust or (B) it no longer controls at least 30% of the voting power
      of the Company's Voting Stock.

     

    "Commitment"
      has the
      meaning specified in Section 2.01.

     

    "Commitment
      Increase"
      has the
      meaning specified in Section 2.05(c)(i).

     

    "Commitment
      Increase Date"
      has the
      meaning specified in Section 2.05(c)(i).

     

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

     

    "Competitive
      Bid Borrowing"
      means a
      borrowing consisting of simultaneous Competitive Bid Advances from each of
      the
      Lenders whose offer to make one or more 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        4

      

    

     

     

                
      Competitive Bid Advances as part of such borrowing has been accepted under
      the
      competitive bidding procedure described in Section 2.03.

     

    "Competitive
      Bid Note"
      means a
      promissory note of any Borrower payable to the order of any Lender, in
      substantially the form of Exhibit A-2 hereto, evidencing the indebtedness
      of such Borrower to such Lender resulting from a Competitive Bid Advance made
      by
      such Lender to such Borrower.

     

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

     

    "Confidential
      Information"
      means
      any non-public or proprietary information disclosed by any Borrower to the
      Agent
      or any Lender that such Borrower indicates is to be treated confidentially,
      but
      does not include any such information that is or becomes generally available
      to
      the public or that is or becomes available to the Agent or such Lender on a
      non-confidential basis from a source other than such Borrower, which source
      is
      not, to the best knowledge of the Agent or such Lender, subject to a
      confidentiality agreement with such Borrower.

     

    "Consolidated"
      refers
      to the consolidation of accounts in accordance with GAAP.

     

    "Consolidated
      Interest Expense"
      means,
      for any period with respect to the Company and its Subsidiaries, net interest
      expense plus
      capitalized interest for such period, in each case determined on a Consolidated
      basis in accordance with GAAP.

     

    "Consolidated
      Net Interest Expense"
      means,
      for any period with respect to the Company and its Subsidiaries, interest
      expense minus
      capitalized interest and interest income for such period, in each case
      determined on a Consolidated basis in accordance with GAAP.

     

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

     

    "Debt"
      means,
      with respect to any Person: (a) indebtedness for borrowed money, (b) obligations
      evidenced by bonds, debentures, notes or other similar instruments, (c)
      obligations to pay the deferred purchase price of property or services (other
      than trade payables incurred in the ordinary course of business), (d)
      obligations as lessee under leases which shall have been or should be, in
      accordance with GAAP, recorded as capital leases, (e) all obligations,
      contingent or otherwise, of such Person in respect of acceptances, letters
      of
      credit (other than trade letters of credit) or similar extensions of credit
      and
      (f) obligations under direct or indirect guaranties in respect of, and
      obligations, contingent or otherwise, to purchase or otherwise acquire, or
      otherwise to assure a creditor against loss in respect of, indebtedness or
      obligations of any other Person of the kinds referred to in clauses (a) through
      (d) above.

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        5

      

    

     

    "Designated
      Subsidiary"
      means
      any corporate Subsidiary of the Company designated for borrowing privileges
      under this Agreement pursuant to Section 9.08.

     

    "Designation
      Letter"
      means,
      with respect to any Designated Subsidiary, a letter in the form of Exhibit
      E
      hereto signed by such Designated Subsidiary and the Company.

     

    "Disclosed
      Litigation"
      has the
      meaning specified in Section 3.01(b).

     

    "Domestic
      Lending Office"
      means,
      with respect to any Initial Lender, the office of such Lender specified as
      its
      "Domestic Lending Office" opposite its name on Schedule I hereto or, with
      respect to any other Lender, the office of such Lender specified as its
      "Domestic Lending Office" in the Assumption Agreement or in the Assignment
      and
      Acceptance pursuant to which it became a Lender, or such other office of such
      Lender as such Lender may from time to time specify to the Company and the
      Agent.

     

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

     

    "Eligible
      Assignee"
      means
      (a) a Lender or any Affiliate of a Lender which is principally engaged in the
      commercial banking business, and (b) any bank or other financial institution,
      or
      any other Person, that has been approved in writing by the Company and the
      Agent
      as an Eligible Assignee for purposes of this Agreement; provided,
      however,
      that
      neither the Company's nor the Agent's approval shall be unreasonably withheld;
      and provided further,
      however,
      that
      the Company may withhold its approval if the Company reasonably believes that
      an
      assignment to such Eligible Assignee pursuant to Section 9.07 will result in
      the
      incurrence of increased costs payable by any Borrower pursuant to Section 2.11
      or 2.14.

     

    "Environmental
      Action"
      means
      any administrative, regulatory or judicial action, suit, demand, demand letter,
      claim, notice, investigation, proceeding, consent order or consent agreement
      relating to any Environmental Law, Environmental Permit or Hazardous Materials
      or arising from alleged injury to health, safety or the
      environment.

     

    "Environmental
      Law"
      means
      any federal, state, local or foreign statute, law, ordinance, rule, regulation,
      code, order, judgment, decree or judicial or agency interpretation, policy
      or
      guidance relating to pollution or protection of the environment, health, safety
      or natural resources, including, without limitation, those relating to the
      use,
      handling, transportation, treatment, storage, disposal, release or discharge
      of
      Hazardous Materials.

     

    "Environmental
      Permit"
      means
      any permit, approval, identification number, license or other authorization
      required under any Environmental Law.

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        6

      

    

     

    "ERISA
      Affiliate"
      means
      any Person that for purposes of Title IV of ERISA is a member of the
      Company's controlled group, or under common control with the Company, within
      the
      meaning of Section 414 of the Internal Revenue Code.

     

    "ERISA
      Event"
      means
      (a) (i) the occurrence of a reportable event, within the meaning of
      Section 4043 of ERISA, with respect to any Plan unless the 30-day notice
      requirement with respect to such event has been waived by the PBGC, or (ii)
      the
      requirements of subsection (1) of Section 4043(b) of ERISA (without regard
      to
      subsection (2) of such Section) are met with a contributing sponsor, as defined
      in Section 4001(a)(13) of ERISA, of a Plan, and an event described in
      paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA is
      reasonably expected to occur with respect to such Plan within the following
      30
      days; (b) the application for a minimum funding waiver with respect to a
      Plan; (c) the provision by the administrator of any Plan of a notice of
      intent to terminate such Plan pursuant to Section 4041(a)(2) of ERISA
      (including any such notice with respect to a plan amendment referred to in
      Section 4041(e) of ERISA); (d) the cessation of operations at a
      facility of the Company or any ERISA affiliate in the circumstances described
      in
      Section 4062(e) of ERISA; (e) the withdrawal by the Company or any
      ERISA Affiliate from a Multiple Employer Plan during a plan year for which
      it
      was a substantial employer, as defined in Section 4001(a)(2) of ERISA;
      (f) the conditions for the imposition of a lien under Section 302(f)
      of ERISA shall have been met with respect to any Plan; (g) the adoption of
      an amendment to a Plan requiring the provision of security to such Plan pursuant
      to Section 307 of ERISA; or (h) the institution by the PBGC of
      proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the
      occurrence of any event or condition described in Section 4042 of ERISA
      that constitutes grounds for the termination of, or the appointment of a trustee
      to administer, such Plan.

     

    "Eurocurrency
      Liabilities"
      has the
      meaning assigned to that term in Regulation D of the Board of Governors of
      the Federal Reserve System, as in effect from time to time.

     

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

     

    "Eurodollar
      Rate"
      means,
      for any Interest Period for each Eurodollar Rate Advance comprising part of
      the
      same Revolving Credit Borrowing, an interest rate per annum equal to the rate
      per annum (rounded upward to the nearest whole multiple of 1/16 of 1% per annum)
      appearing on Moneyline Telerate Markets Page 3750 (or any successor page) as
      the
      London interbank offered rate for deposits in U.S. dollars at approximately
      11:00 A.M. (London time) two Business Days prior to the first day of such
      Interest Period for a term comparable to such Interest Period or, if for any
      reason such rate is not available, the average (rounded upward to the
      nearest whole multiple of 1/16 of 1% per annum, if such average is not such
      a
      multiple) of the rate per annum at which deposits in 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        7

      

    

     

                 U.S.
      dollars are offered by the principal office of each of the Reference Banks
      in
      London, England to prime banks in the London interbank market at 11:00 A.M.
      (London time) two Business Days before the first day of such Interest Period
      in
      an amount substantially equal to such Reference Bank's Eurodollar Rate Advance
      comprising part of such Revolving Credit Borrowing to be outstanding during
      such
      Interest Period and for a period equal to such Interest Period. If Moneyline
      Telerate Markets Page 3750 (or any successor page) is unavailable, the
      Eurodollar Rate for any Interest Period for each Eurodollar Rate Advance
      comprising part of the same Revolving Credit Borrowing shall be determined
      by
      the Agent on the basis of applicable rates furnished to and received by the
      Agent from the Reference Banks two Business Days before the first day of such
      Interest Period, subject,
      however,
      to the
      provisions of Section 2.08. 

     

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

     

    "Eurodollar
      Rate Reserve Percentage"
      with
      respect to any Lender for any Interest Period for all Eurodollar Rate Advances
      or LIBO Rate Advances comprising part of the same Borrowing means the reserve
      percentage applicable during such Interest Period (or, if more than one such
      percentage shall be so applicable, the daily average of such percentages for
      those days in such Interest Period during which any such percentage shall be
      so
      applicable) under regulations issued from time to time by the Board of Governors
      of the Federal Reserve System (or any successor) for determining the reserve
      requirement (including, without limitation, any emergency, supplemental or
      other
      marginal reserve requirement) actually imposed on such Lender with respect
      to
      liabilities or assets consisting of or including Eurocurrency Liabilities (or
      with respect to any other category of liabilities that includes deposits by
      reference to which the interest rate on Eurodollar Rate Advances or LIBO Rate
      Advances is determined) having a term equal to such Interest
      Period.

     

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

     

    "Excluded
      Taxes"
      has the
      meaning specified in Section 2.14(a).

     

    "Federal
      Funds Rate"
      means,
      for any period, a fluctuating interest rate per annum equal for each day during
      such period to the weighted average of the rates on overnight Federal funds
      transactions with members of the Federal Reserve System arranged by Federal
      funds brokers, as published for such day (or, if such day is not a Business
      Day,
      for the next preceding Business Day) by the Federal Reserve Bank of
      New York, or, if such rate is not so published for any day that is a
      Business Day, the average of the quotations for such day on such transactions
      received by the Agent from three Federal funds brokers of recognized standing
      selected by it.

     

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

     

    "GAAP"
      has the
      meaning specified in Section 1.03.

     

    "Guaranty"
      means
      the guaranty made by the Company to the Lenders and the Agent pursuant to
      Article VII.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        8

      

    

     

    "Guaranteed
      Obligations"
      has the
      meaning specified in Section 7.01(a).

     

    "Hazardous
      Materials"
      means
      (a) petroleum and petroleum products, byproducts or breakdown products,
      radioactive materials, asbestos-containing materials, polychlorinated biphenyls
      and radon gas and (b) any other chemicals, materials or substances designated,
      classified or regulated as hazardous or toxic or as a pollutant or contaminant
      under any Environmental Law.

     

    "Increasing
      Lender"
      has the
      meaning specified in Section 2.05(c)(i).

     

    "Insufficiency"
      means,
      with respect to any Plan, the amount, if any, of its unfunded benefit
      liabilities, as defined in Section 4001(a)(18) of ERISA.

     

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

     

    (i)  such
      Borrower may not select any Interest Period that ends after the Termination
      Date;

     

     
      (ii)  Interest
      Periods commencing on the same date for Eurodollar Rate Advances comprising
      part
      of the same Revolving Credit Borrowing or for LIBO Rate Advances comprising
      part
      of the same Competitive Bid Borrowing shall be of the same
      duration;

     

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

     

      
      (iv)  whenever
      the first day of any Interest Period occurs on a day of an initial calendar
      month for which there is no numerically corresponding day in the calendar month
      that succeeds such initial calendar month by the number of months equal to
      the
      number of months in such Interest Period, such Interest Period shall end on
      the
      last Business Day of such succeeding calendar month.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        9

      

    

     

     

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

     

    "Lenders"
      means,
      collectively, each of the banks, financial institutions and other institutional
      lenders listed on Schedule I hereto, each Assuming Lender that shall become
      a
      party hereto pursuant to Section 2.05(c) and each Eligible Assignee that shall
      become a party hereto pursuant to Section 9.07.

     

    "Level"
      means,
      as of any date, the lowest of Level 1, Level 2, Level 3,
      Level 4, Level 5 or Level 6 then applicable to the Public Debt
      Rating.

     

    "Level 1"
      means
      that either (a) S&P shall have assigned a rating of at least AA- or (b)
      Moody's shall have assigned a rating of at least Aa3.

     

    "Level 2"
      means
      that either (a) S&P shall have assigned a rating lower than AA- but at least
      A+ or (b) Moody's shall have assigned a rating lower than Aa3 but at least
      A1.

     

    "Level 3"
      means
      that either (a) S&P shall have assigned a rating lower than A+ but at least
      A or (b) Moody's shall have assigned a rating lower than A1 but at least A2.
      

     

    "Level 4"
      means
      that either (a) S&P shall have assigned a rating lower than A but at least
      A- or (b) Moody's shall have assigned a rating lower than A2 but at least
      A3.

     

    "Level 5"
      means
      that either (a) S&P shall have assigned a rating lower than A- but at least
      BBB+ or (b) Moody's shall have assigned a rating lower than A3 but at least
      Baa1.

     

    "Level
      6"
      means
      that the Company has not met the criteria for Level 1, Level 2, Level 3, Level
      4
      and Level 5.

     

    "LIBO
      Rate"
      means,
      for any Interest Period for all LIBO Rate Advances comprising part of the same
      Competitive Bid Borrowing, an interest rate per annum equal to the rate per
      annum (rounded upward to the nearest whole multiple of 1/16 of 1% per annum)
      appearing on Moneyline Telerate Markets Page 3750 (or any successor page) as
      the
      London interbank offered rate for deposits in U.S. dollars at approximately
      11:00 A.M. (London time) two Business Days prior to the first day of such
      Interest Period for a term comparable to such Interest Period or, if for any
      reason such rate is not available, the average (rounded upward to the
      nearest whole multiple of 1/16 of 1% per annum, or if there is no nearest whole
      multiple of 1/16 of 1% per annum, then rounded upward to the nearest whole
      multiple of 1/16 of 1% per annum, if such average is not such a multiple) of
      the
      rate per annum at which deposits in U.S. dollars are offered by the principal
      office of each of the Reference Banks in London, England to prime banks in
      the
      London interbank market at 11:00 A.M. (London time) two Business Days
      before the first day of such Interest Period in an amount substantially equal
      to
      the amount that would be such Reference Bank's respective ratable share of
      such
      Borrowing if such Borrowing were to be a Revolving Credit Borrowing to be
      outstanding during such Interest Period and for a period equal to such Interest
      Period. If Moneyline Telerate Markets Page 3750 (or any 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        10

      

    

     

     

                
      successor page) is unavailable, the LIBO Rate for any Interest Period for each
      LIBO Rate Advance comprising part of the same Competitive Bid   
Borrowing shall be determined by the Agent on the basis of applicable rates
      furnished to and received by the Agent from the Reference Banks two Business
      Days before the first day of such Interest Period, subject,
      however,
      to the
      provisions of Section 2.08.

     

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

     

    "Lien"
      means
      any mortgage, pledge, lien, security interest, conditional sale or other title
      retention agreement or other similar charge or encumbrance.

     

    "Majority
      Lenders"
      means
      at any time Lenders owed at least 51% of the then aggregate unpaid principal
      amount of the Revolving Credit Advances owing to Lenders, or, if no such
      principal amount is then outstanding, Lenders having at least 51% of the
      Commitments.

     

    "Material
      Adverse Change"
      means
      any material adverse change in the business, financial condition, operations,
      performance or principal manufacturing properties of the Company and its
      Subsidiaries taken as a whole.

     

    "Material
      Adverse Effect"
      means a
      material adverse effect on (a) the business, financial condition,
      operations, performance or principal manufacturing properties of the Company
      and
      its Subsidiaries taken as a whole, (b) the rights and remedies of the Agent
      or the Lenders under this Agreement or any Note or (c) the ability of any
      Borrower to perform its obligations (other than payment obligations) under
      this
      Agreement or any Note.

     

    "Material
      Subsidiary"
      means,
      at any date of determination, a Subsidiary of the Company that, either
      individually or together with its Subsidiaries, taken as a whole, has total
      assets exceeding $300,000,000 on such date.

     

    "Moody's"
      means
      Moody's Investors Service, Inc., or its successor.

     

    "Multiemployer
      Plan"
      means a
      multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which the
      Company or any ERISA Affiliate is making or accruing an obligation to make
      contributions, or has within any of the preceding five plan years made or
      accrued an obligation to make contributions.

     

    "Multiple
      Employer Plan"
      means a
      single employer plan, as defined in Section 4001(a)(15) of ERISA, that
      (a) is maintained for employees of the Company or any ERISA Affiliate and
      at least one Person other than the Company and the ERISA Affiliates or
      (b) was so maintained and in respect of which the Company or any ERISA
      Affiliate could have liability under Section 4064 or 4069 of ERISA in the
      event such plan has been or were to be terminated.

     

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

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        11

      

    

     

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

     

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

     

    "Other
      Taxes"
      has the
      meaning specified in Section 2.14(b).

     

    "PBGC"
      means
      the Pension Benefit Guaranty Corporation (or any successor).

     

    "Permitted
      Liens"
      means
      such of the following as to which no enforcement, collection, execution, levy
      or
      foreclosure proceeding shall have been commenced: (a) Liens for taxes,
      assessments and governmental charges or levies to the extent not required to
      be
      paid under Section 5.01(b) hereof; (b) Liens imposed by law, such as
      materialmen's, mechanics', carriers', workmen's and repairmen's Liens and other
      similar Liens arising in the ordinary course of business; (c) pledges or
      deposits to secure obligations under workers' compensation laws or similar
      legislation or to secure public or statutory obligations; (d) easements,
      rights of way and other encumbrances on title to real property that do not
      render title to the property encumbered thereby unmarketable or materially
      adversely affect the use of such property for its present purposes; (e) Liens
      arising under leases or subleases granted to others that would not be reasonably
      likely to have a Material Adverse Effect on the Company and its Subsidiaries
      taken as a whole; (f) Liens granted in connection with any interest rate or
      foreign currency options, commodity contracts, futures or similar agreements
      entered into by the Company or any of its Subsidiaries in the ordinary course
      of
      business; and (g) Liens granted in connection with corporate-owned life
      insurance programs of the Company or any of its Subsidiaries.

     

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

     

    "Plan"
      means a
      Single Employer Plan or a Multiple Employer Plan.

     

    "Pre-Tax
      Income from Continuing Operations"
      means,
      for any period with respect to the Company and its Subsidiaries, net income
      (or
      net loss) from operations (determined without giving effect to extraordinary
      or
      non-recurring gains or losses) plus
      the sum
      of (a) Consolidated Net Interest Expense, (b) income tax expense and (c)
      non-recurring non-cash charges (including the cumulative effect of accounting
      changes, restructuring charges and gains or losses from the sale of businesses),
      in each case determined on a Consolidated basis in accordance with GAAP;
provided,
      however,
      that
      the LIFO adjustment to the determination of Pre-Tax Income from Continuing
      Operations for purposes of the quarterly financial statements and the compliance
      certificate delivered pursuant to Section 5.01(h)(i) shall be made in accordance
      with the Company's best estimation.

     

    "Process
      Agent"
      has the
      meaning specified in Section 9.12(a).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        12

      

    

     

     

    "Public
      Debt Rating"
      means,
      as of any date, the lowest rating that has been most recently and officially
      announced by either S&P or Moody's, as the case may be, for any class of
      non-credit enhanced long-term senior unsecured debt issued by the Company.
      For
      purposes of the foregoing, (a) if only one of S&P and Moody's shall
      have in effect a Public Debt Rating for the Company, the Applicable Margin,
      the
      Applicable Percentage and the Applicable Utilization Fee shall be determined
      by
      reference to the available rating; (b) if neither S&P nor Moody's shall
      have in effect a Public Debt Rating for the Company, the Applicable Margin,
      the
      Applicable Percentage and the Applicable Utilization Fee will be set in
      accordance with Level 6 under the definition of "Applicable
      Margin",
      "Applicable
      Percentage"
      or
      "Applicable
      Utilization Fee",
      as the
      case may be; (c) if the ratings established by S&P and Moody's shall
      fall within different levels, the Applicable Margin, the Applicable Percentage
      and the Applicable Utilization Fee shall be based upon the higher rating,
provided
      that if
      the lower of such ratings is more than one level below the higher of such
      ratings, the Applicable Margin, the Applicable Percentage and the Applicable
      Utilization Fee shall be determined by reference to the level that is one level
      above such lower rating; (d)  if any rating established by S&P or
      Moody's shall be changed, such change shall be effective as of the date on
      which
      such change is first announced publicly by the rating agency making such change
      (regardless of the effective date thereof); and (e) if S&P or Moody's
      shall change the basis on which ratings are established, each reference to
      the
      Public Debt Rating announced by S&P or Moody's, as the case may be, shall
      refer to the then equivalent rating by S&P or Moody's, as the case may
      be.

     

    "Reference
      Banks"
      means
      Citibank, Bank of America, N.A. and UBS AG, Stamford Branch, or, in the event
      that less than two of such Lenders remain Lenders hereunder at any time, any
      other commercial bank designated by the Company and approved by the Majority
      Lenders as constituting a "Reference Bank" hereunder.

     

    "Register"
      has the
      meaning specified in Section 9.07(d).

     

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

     

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

     

    "Revolving
      Credit Note"
      means a
      promissory note of any Borrower payable to the order of any Lender, delivered
      pursuant to a request made under 2.18(a) in substantially the form of
      Exhibit A-1 hereto, evidencing the aggregate indebtedness of such Borrower
      to such Lender resulting from the Revolving Credit Advances made by such Lender
      to such Borrower.

     

    "S&P"
      means
      Standard & Poor's Rating Services, a division of the McGraw-Hill Companies,
      Inc., or its successor.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        13

      

    

     

    "Single
      Employer Plan"
      means a
      single employer plan, as defined in Section 4001(a)(15) of ERISA, that
      (a) is maintained for employees of the Company or any ERISA Affiliate and
      no Person other than the Company and the ERISA Affiliates or (b) was so
      maintained and in respect of which the Company or any ERISA Affiliate could
      have
      liability under Section 4069 of ERISA in the event such plan has been or
      were to be terminated.

     

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

     

    "Taxes"
      has the
      meaning specified in Section 2.14(a).

     

    "Termination
      Date"
      means
      the earlier of (a) September 15, 2006 or (b) the date of termination in whole
      of
      the Commitments pursuant to Section 2.05(a), 2.05(b) or 6.01.

     

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

     

    "Withdrawal
      Liability"
      has the
      meaning specified in Part I of Subtitle E of Title IV of
      ERISA.

     

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

     

    SECTION
      1.03.   Accounting
      Terms.
      All
      accounting terms not specifically defined herein shall be construed in
      accordance with accounting principles generally accepted in the United States
      consistent with those applied in the preparation of the financial statements
      referred to in Section 4.01(e) ("GAAP").

     

    ARTICLE
      II   

     

    AMOUNTS
      AND TERMS OF THE ADVANCES

     

    SECTION
      2.01.   The
      Revolving Credit Advances.
      Each
      Lender severally agrees, on the terms and conditions hereinafter set forth,
      to
      make Revolving Credit Advances to any Borrower from time to time on any Business
      Day during the period from the Effective Date until 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        14

      

    

     

    the
      Termination Date in an aggregate amount for all Borrowers not to exceed at
      any
      time outstanding (a) the amount set forth opposite such Lender's name on
      Schedule I hereto or (b) if such Lender has become a Lender hereunder pursuant
      to an Assumption Agreement or has increased its Commitment pursuant to Section
      2.05(c), or if such Lender has entered into any Assignment and Acceptance,
      the
      amount set forth for such Lender in the Register maintained by the Agent
      pursuant to Section 9.07(d), in each case as such amount may be reduced
      pursuant to Section 2.05(a) or (b) (such Lender's "Commitment"),
      provided
      that the
      aggregate amount of the Commitments of the Lenders shall be deemed used from
      time to time to the extent of the aggregate amount of the Competitive Bid
      Advances then outstanding and such deemed use of the aggregate amount of the
      Commitments shall be allocated among the Lenders ratably according to their
      respective Commitments (such deemed use of the aggregate amount of the
      Commitments being a "Competitive
      Bid Reduction").
      Each
      Revolving Credit Borrowing shall be in an aggregate amount of $5,000,000 or
      an
      integral multiple of $1,000,000 in excess thereof (or, if less, an aggregate
      amount equal to the amount by which the aggregate amount of a proposed
      Competitive Bid Borrowing requested by any Borrower exceeds the aggregate amount
      of Competitive Bid Advances offered to be made by the Lenders and accepted
      by
      such Borrower in respect of such Competitive Bid Borrowing, if such Competitive
      Bid Borrowing is made on the same date and by the same Borrower as such
      Revolving Credit Borrowing) and shall consist of Revolving Credit Advances
      of
      the same Type made on the same day by the Lenders ratably according to their
      respective Commitments. Within the limits of each Lender's Commitment, any
      Borrower may borrow under this Section 2.01, prepay pursuant to
      Section 2.10 and reborrow under this Section 2.01.

     

    SECTION
      2.02.   Making
      the Revolving Credit Advances.
      (a)
      Each
      Revolving Credit Borrowing shall be made on notice, given not later than
      (i) 11:00 A.M. (New York City time) on the third Business Day
      prior to the date of the proposed Revolving Credit Borrowing in the case of
      a
      Revolving Credit Borrowing consisting of Eurodollar Rate Advances or (ii) 11:00
      A.M. (New York City time) on the day of the proposed Revolving Credit Borrowing
      in the case of a Revolving Credit Borrowing consisting of Base Rate Advances,
      by
      any Borrower to the Agent, which shall give to each Lender prompt notice thereof
      by telecopier or telex. Each such notice of a Revolving Credit Borrowing (a
      "Notice
      of Revolving Credit Borrowing")
      shall
      be by telephone, confirmed immediately in writing, or telecopier or telex in
      substantially the form of Exhibit B-1 hereto, specifying therein the
      requested (w) date of such Revolving Credit Borrowing, (x) Type of
      Advances comprising such Revolving Credit Borrowing, (y) aggregate amount
      of such Revolving Credit Borrowing, and (z) in the case of a Revolving
      Credit Borrowing consisting of Eurodollar Rate Advances, initial Interest Period
      for each such Revolving Credit Advance. Each Lender shall, before (i) in the
      case of a Eurodollar Rate Advance, 11:00 A.M. (New York City time) or
      (ii) in the case of a Base Rate Advance, 1:00 P.M. (New York City time) on
      the
      date of such Revolving Credit Borrowing, make available for the account of
      its
      Applicable Lending Office to the Agent at the Agent's Account, in same day
      funds, such Lender's ratable portion of such Revolving Credit Borrowing. After
      the Agent's receipt of such funds and upon fulfillment of the applicable
      conditions set forth in Article III, the Agent will make such funds
      available to the Borrower requesting the Revolving Credit Borrowing at the
      Agent's address referred to in Section 9.02.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
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    (b)  Anything
      herein to the contrary notwithstanding, a Borrower may not select Eurodollar
      Rate Advances for any Revolving Credit Borrowing if the obligation of the
      Lenders to make Eurodollar Rate Advances shall then be suspended pursuant to
      Section 2.08 or 2.12.

     

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

     

    (d)  Unless
      the Agent shall have received notice from a Lender prior to the date of any
      Revolving Credit Borrowing comprised of Eurodollar Rate Advances or prior to
      the
      time of the proposed disbursement of any Revolving Credit Borrowing comprised
      of
      Base Rate Advances that such Lender will not make available to the Agent such
      Lender's ratable portion of such Revolving Credit Borrowing, the Agent may
      assume that such Lender has made such portion available to the Agent on the
      date
      of such Revolving Credit Borrowing in accordance with subsection (a) of
      this Section 2.02 and the Agent may, in reliance upon such assumption, make
      available to the Borrower requesting such Revolving Credit Borrowing on such
      date a corresponding amount. If and to the extent that such Lender shall not
      have so made such ratable portion available to the Agent, such Lender and such
      Borrower severally agree to repay to the Agent forthwith on demand such
      corresponding amount together with interest thereon, for each day from the
      date
      such amount is made available to such Borrower until the date such amount is
      repaid to the Agent, at (i) in the case of such Borrower, the interest rate
      applicable at the time to Revolving Credit Advances comprising such Revolving
      Credit Borrowing and (ii) in the case of such Lender, the Federal Funds
      Rate. If such Lender shall repay to the Agent such corresponding amount, such
      amount so repaid shall constitute such Lender's Revolving Credit Advance as
      part
      of such Revolving Credit Borrowing for purposes of this Agreement.

     

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

     

    SECTION
      2.03.   The
      Competitive Bid Advances.
      (a)
      Each
      Lender severally agrees that any Borrower may make Competitive Bid Borrowings
      under this Section 2.03 from time to time on any Business Day during the
      period from the date hereof until the date occurring 30 days prior to the
      Termination Date in the manner set forth below; provided
      that,
      following the

     

    
      
        
        

      

      
        
        

        
          

        

      

      
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    making
      of
      each Competitive Bid Borrowing, the aggregate amount of the Advances then
      outstanding shall not exceed the aggregate amount of the Commitments of the
      Lenders (computed without regard to any Competitive Bid Reduction).

     

    (i)  A
      Borrower may request a Competitive Bid Borrowing under this Section 2.03 by
      delivering to the Agent, by telecopier or telex, a notice of a Competitive
      Bid
      Borrowing (a "Notice
      of Competitive Bid Borrowing"),
      in
      substantially the form of Exhibit B-2 hereto, specifying therein the
      requested (u) date of such proposed Competitive Bid Borrowing,
      (v) aggregate amount of such proposed Competitive Bid Borrowing, (w)
      interest rate basis (LIBO Rate or fixed rate) to be offered by the Lenders,
      (x) in the case of a Competitive Bid Borrowing consisting of LIBO Rate
      Advances, Interest Period of each Competitive Bid Advance to be made as part
      of
      such Competitive Bid Borrowing, or in the case of a Competitive Bid Borrowing
      Consisting of Fixed Rate Advances, maturity date for repayment of each Fixed
      Rate Advance to be made as part of such Competitive Bid Borrowing (which
      maturity date may not be earlier than the date occurring 7 days after the date
      of such Competitive Bid Borrowing or later than the earlier of (I) 180 days
      after the date of such Competitive Bid Borrowing and (II) the Termination
      Date), (y) interest payment date or dates relating thereto, and
      (z) other terms (if any) to be applicable to such Competitive Bid
      Borrowing, not later than 10:00 A.M. (New York City time) (A) at
      least one Business Day prior to the date of the proposed Competitive Bid
      Borrowing, if such Borrower shall specify in the Notice of Competitive Bid
      Borrowing that the rates of interest to be offered by the Lenders shall be
      fixed
      rates per annum (the Advances comprising any such Competitive Bid Borrowing
      being referred to herein as "Fixed
      Rate Advances")
      and
      (B) at least four Business Days prior to the date of the proposed
      Competitive Bid Borrowing, if such Borrower shall instead specify in the Notice
      of Competitive Bid Borrowing that the rates of interest to be offered by the
      Lenders are to be based on the LIBO Rate (the Advances comprising such
      Competitive Bid Borrowing being referred to herein as "LIBO
      Rate Advances").
      Each
      Notice of Competitive Bid Borrowing of a Borrower shall be irrevocable and
      binding on such Borrower. Any Notice of Competitive Bid Borrowing by a
      Designated Subsidiary shall be given to the Agent in accordance with the
      preceding sentence through the Company on behalf of such Designated Subsidiary.
      The Agent shall in turn promptly notify each Lender of each request for a
      Competitive Bid Borrowing received by it from a Borrower by sending such Lender
      a copy of the related Notice of Competitive Bid Borrowing.

     

    (ii)  Each
      Lender may, if, in its sole discretion, it elects to do so, irrevocably offer
      to
      make one or more Competitive Bid Advances to the Borrower proposing the
      Competitive Bid Borrowing as part of such proposed Competitive Bid Borrowing
      at
      a rate or rates of interest specified by such Lender in its sole discretion,
      by
      notifying the Agent (which shall give prompt notice thereof to such Borrower),
      before 9:30 A.M. (New York City time) on the date of such proposed
      Competitive Bid Borrowing, in the case of a Competitive Bid Borrowing consisting
      of Fixed Rate Advances and before 10:00 A.M. (New York City time) three Business
      Days before the date of such proposed Competitive Bid Borrowing, in the case
      of
      a Competitive Bid Borrowing consisting of LIBO Rate Advances, of the minimum
      amount and maximum amount of each Competitive Bid Advance which such Lender
      would be willing to make as part of such 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        17

      

    

     

     

    proposed
      Competitive Bid Borrowing (which amounts may, subject to the proviso to the
      first sentence of this Section 2.03(a), exceed such Lender's Commitment, if
      any), the rate or rates of interest therefor and such Lender's Applicable
      Lending Office with respect to such Competitive Bid Advance; provided
      that if
      the Agent in its capacity as a Lender shall, in its sole discretion, elect
      to
      make any such offer, it shall notify such Borrower of such offer at least 30
      minutes before the time and on the date on which notice of such election is
      to
      be given to the Agent by the other Lenders. If any Lender shall elect not to
      make such an offer, such Lender shall so notify the Agent, before
      10:00 A.M. (New York City time) on the date on which notice of such
      election is to be given to the Agent by the other Lenders, and such Lender
      shall
      not be obligated to, and shall not, make any Competitive Bid Advance as part
      of
      such Competitive Bid Borrowing; provided
      that the
      failure by any Lender to give such notice shall not cause such Lender to be
      obligated to make any Competitive Bid Advance as part of such proposed
      Competitive Bid Borrowing.

     

    (iii)  The
      Borrower proposing the Competitive Bid Borrowing shall, in turn, before
      10:30 A.M. (New York City time) on the date of such proposed
      Competitive Bid Borrowing, in the case of a Competitive Bid Borrowing consisting
      of Fixed Rate Advances and before 11:00 A.M. (New York City time)
      three Business Days before the date of such proposed Competitive Bid Borrowing,
      in the case of a Competitive Bid Borrowing consisting of LIBO Rate Advances,
      either:

     

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

     

    (y) accept
      one or more of the offers made by any Lender or Lenders pursuant to paragraph
      (ii) above, in its sole discretion, by giving notice to the Agent of the amount
      of each Competitive Bid Advance (which amount shall be equal to or greater
      than
      the minimum amount, and equal to or less than the maximum amount, notified
      to
      such Borrower by the Agent on behalf of such Lender for such Competitive Bid
      Advance pursuant to paragraph (ii) above) to be made by each Lender as part
      of such Competitive Bid Borrowing, and reject any remaining offers made by
      Lenders pursuant to paragraph (ii) above by giving the Agent notice to that
      effect; provided,
      however,
      that
      such Borrower shall not accept any offer in excess of the requested bid amount
      for any maturity. Such Borrower shall accept the offers made by any Lender
      or
      Lenders to make Competitive Bid Advances in order of the lowest to the highest
      rates of interest offered by such Lenders. If two or more Lenders have offered
      the same interest rate, the amount to be borrowed at such interest rate will
      be
      allocated among such Lenders in proportion to the amount that each such Lender
      offered at such interest rate.

     

    (iv)  If
      the
      Borrower proposing the Competitive Bid Advance notifies the Agent that such
      Competitive Bid Borrowing is cancelled pursuant to paragraph (iii)(x)
      above, the Agent shall give prompt notice thereof to the Lenders and such
      Competitive Bid Borrowing shall not be made.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        18

      

    

     

     

    (v)  If
      the
      Borrower proposing the Competitive Bid Advance accepts one or more of the offers
      made by any Lender or Lenders pursuant to paragraph (iii)(y) above, the
      Agent shall in turn promptly notify (A) each Lender that has made an offer
      as described in paragraph (ii) above, of the date and aggregate amount of
      such Competitive Bid Borrowing and whether or not any offer or offers made
      by
      such Lender pursuant to paragraph (ii) above have been accepted by such
      Borrower, (B) each Lender that is to make a Competitive Bid Advance as part
      of such Competitive Bid Borrowing, of the amount of each Competitive Bid Advance
      to be made by such Lender as part of such Competitive Bid Borrowing, and
      (C) each Lender that is to make a Competitive Bid Advance as part of such
      Competitive Bid Borrowing, upon receipt, that the Agent has received forms
      of
      documents appearing to fulfill the applicable conditions set forth in Article
      III. Each Lender that is to make a Competitive Bid Advance as part of such
      Competitive Bid Borrowing shall, before 12:00 Noon (New York City
      time) on the date of such Competitive Bid Borrowing specified in the notice
      received from the Agent pursuant to clause (A) of the preceding sentence or
      any later time when such Lender shall have received notice from the Agent
      pursuant to clause (C) of the preceding sentence, make available for the
      account of its Applicable Lending Office to the Agent at the Agent's Account,
      in
      same day funds, such Lender's portion of such Competitive Bid Borrowing. Upon
      fulfillment of the applicable conditions set forth in Article III and after
      receipt by the Agent of such funds, the Agent will make such funds available
      to
      such Borrower at the Agent's address referred to in Section 9.02. Promptly
      after each Competitive Bid Borrowing the Agent will notify each Lender of the
      amount of the Competitive Bid Borrowing, the consequent Competitive Bid
      Reduction and the dates upon which such Competitive Bid Reduction commenced
      and
      will terminate.

     

    (vi)  If
      the
      Borrower proposing the Competitive Bid Advance notifies the Agent that it
      accepts one or more of the offers made by any Lender or Lenders pursuant to
      paragraph (iii)(y) above, such notice of acceptance shall be irrevocable
      and binding on such Borrower. Such Borrower shall indemnify each Lender, after
      receipt of a written request by such Lender setting forth in reasonable detail
      the basis for such request, against any loss, cost or expense actually incurred
      by such Lender as a result of any failure by such Borrower to fulfill on or
      before the date specified in the related Notice of Competitive Bid Borrowing
      for
      such Competitive Bid Borrowing the applicable conditions set forth in
      Article III, including, without limitation, any loss (other than loss of
      anticipated profits), cost or expense actually incurred by reason of the
      liquidation or reemployment of deposits or other funds acquired by such Lender
      to fund the Competitive Bid Advance to be made by such Lender as part of such
      Competitive Bid Borrowing when such Competitive Bid Advance, as a result of
      such
      failure, is not made on such date.

     

                        
      (b)  Each
      Competitive Bid Borrowing shall be in an aggregate amount of $10,000,000 or
      an
      integral multiple of $1,000,000 in excess thereof and, following the making
      of
      each Competitive Bid Borrowing, the Borrower that has borrowed through such
      Competitive Bid Borrowing shall be in compliance with the limitation set forth
      in the proviso to the first sentence of subsection (a) above.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        19

      

    

     

    (c)  Within
      the limits and on the conditions set forth in this Section 2.03, each
      Borrower may from time to time borrow under this Section 2.03, repay or
      prepay pursuant to subsection (d) below, and reborrow under this
      Section 2.03.

     

    (d)  Each
      Borrower that has borrowed through a Competitive Bid Borrowing shall repay
      to
      the Agent for the account of each Lender that has made a Competitive Bid
      Advance, on the maturity date of such Competitive Bid Advance (such maturity
      date being that specified by such Borrower for repayment of such Competitive
      Bid
      Advance in the related Notice of Competitive Bid Borrowing delivered pursuant
      to
      subsection (a)(i) above and provided in the Competitive Bid Note evidencing
      such Competitive Bid Advance), the then unpaid principal amount of such
      Competitive Bid Advance. A Borrower shall have no right to prepay any principal
      amount of any Competitive Bid Advance without the consent of the Lender that
      has
      made such Competitive Bid Advance or as is specified in the Notice of
      Competitive Bid Borrowing.

     

    (e)  Each
      Borrower that has borrowed through a Competitive Bid Borrowing shall pay
      interest on the unpaid principal amount of each Competitive Bid Advance from
      the
      date of such Competitive Bid Advance comprising such Competitive Bid Borrowing
      to the date the principal amount of such Competitive Bid Advance is repaid
      in
      full, at the rate of interest for such Competitive Bid Advance specified by
      the
      Lender making such Competitive Bid Advance in its notice with respect thereto
      delivered pursuant to subsection (a)(ii) above, payable on the interest
      payment date or dates specified by such Borrower for such Competitive Bid
      Advance in the related Notice of Competitive Bid Borrowing delivered pursuant
      to
      subsection (a)(i) above, as provided in the Competitive Bid Note evidencing
      such Competitive Bid Advance. Upon the occurrence and during the continuance
      of
      an Event of Default under Section 6.01(a), each Borrower that has borrowed
      through a Competitive Bid Borrowing shall pay interest on the amount of unpaid
      principal of and interest on each Competitive Bid Advance comprising such
      Competitive Bid Borrowing that is owing to a Lender, payable in arrears on
      the
      date or dates interest is payable thereon, at a rate per annum equal at all
      times to 2% per annum above the rate per annum required to be paid on such
      Competitive Bid Advance under the terms of the Competitive Bid Note evidencing
      such Competitive Bid Advance unless otherwise agreed in such Competitive Bid
      Note.

     

                            (f)  The
      indebtedness of any Borrower resulting from each Competitive Bid Advance made
      to
      such Borrower as part of a Competitive Bid Borrowing shall be evidenced by
      a
      separate Competitive Bid Note of such Borrower payable to the order of the
      Lender making such Competitive Bid Advance.

     

    SECTION
      2.04.   Fees.
      (a) Facility
      Fee.
      The
      Company agrees to pay to the Agent for the account of each Lender a facility
      fee
      on the aggregate amount of such Lender's Commitment from the date hereof in
      the
      case of each Initial Lender and from the effective date specified in the
      Assumption Agreement or the Assignment and Acceptance, as the case may be,
      pursuant to which it became a Lender in the case of each other Lender until
      the
      Termination Date at a rate per annum equal to the Applicable Percentage in
      effect from time to time, payable in arrears quarterly on the last day of each
      March, June, September and December, commencing March 30, 2006, and on the
      Termination Date.

     

    
      
        
        

      

      
        
        

        
          

        

      

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

     

    SECTION
      2.05.   Termination,
      Reduction or Increase of the Commitments.
      (a) Termination
      or Ratable Reduction by the Company.
      The
      Company shall have the right, upon at least three Business Days' notice to
      the
      Agent, to terminate in whole or reduce ratably in part the unused portions
      of
      the respective Commitments of the Lenders, provided
      that
      each partial reduction shall be in the aggregate amount of $10,000,000 or an
      integral multiple of $1,000,000 in excess thereof and provided,
      further,
      that
      the aggregate amount of the Commitments of the Lenders shall not be reduced
      to
      an amount that is less than the aggregate principal amount of the Competitive
      Bid Advances then outstanding. The aggregate amount of the Commitments, once
      reduced or terminated as provided in this Section 2.05(a), may not be
      reinstated, except as provided in Section 2.05(c) below.

     

    (b)  Termination
      by the Majority Lenders upon Change of Control.
      In the
      event that a Change of Control occurs, (i) the Agent shall at the request,
      or may with the consent, of the Majority Lenders, by notice to the Company
      given
      not later than 10 Business Days after receipt by the Lenders and the Agent
      of
      notice from the Company of such Change of Control pursuant to Section
      5.01(h)(iv), declare the Commitments (determined without giving effect to any
      Competitive Bid Reduction) to be terminated in whole, effective as of the date
      set forth in such notice, provided,
      however,
      that
      such date shall be no earlier than 10 Business Days after the Company's receipt
      of such notice of termination and (ii) each Borrower's right to make a
      Borrowing under this Agreement shall thereupon be suspended and shall remain
      suspended until 10 Business Days after receipt by the Lenders and the Agent
      of
      notice from the Company of such Change of Control pursuant to Section
      5.01(h)(iv) unless the Majority Lenders shall have exercised their right to
      terminate the Commitments as provided in clause (i) of this Section 2.05(b),
      in
      which case each Borrower's right to make a Borrowing under this Agreement shall
      remain suspended until the effective date of such termination. A notice of
      termination pursuant to this Section 2.05(b) shall have the effect of
      accelerating the outstanding Advances of the Lenders and the Notes of the
      Lenders and each Borrower shall, on or prior to the effective date of the
      termination of the Commitments, prepay or cause to be prepaid the outstanding
      principal amount of all Advances owing by any such Borrower to the Lenders,
      together with accrued interest thereon to the date of such payment, any facility
      fees or other fees payable to the Lenders pursuant to the provisions of Section
      2.04, and all other amounts payable to the Lenders under this Agreement
      (including, but not limited to, any increased costs or other amounts owing
      under
      Section 2.11 and any indemnification for Taxes under Section 2.14). Upon such
      prepayment and the termination of the Commitments in accordance with this
      Section 2.05(b), the obligations of the Lenders under this Agreement shall,
      by
      the provisions hereof, be released and discharged.

     

    (c)  Increase
      by the Company.
      (i)
      The
      Company may at any time, by notice to the Agent, propose that the aggregate
      amount of the Commitments be increased (each such proposed increase being a
      "Commitment
      Increase")
      by up
      to $200,000,000 in excess of the aggregate of the Commitments as of the
      Effective Date, effective as at a date (the "Commitment
      Increase Date")
      that
      shall be specified in such notice and that shall be (A) prior to the
      Termination Date and (B) at least 15 Business Days after the date of such
      notice; provided,
      however,
      that
      (w) the Company may not propose more than one Commitment Increase during any
      calendar year, (x) the minimum proposed Commitment Increase for each
      Commitment Increase Date shall be 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        21

      

    

     

     

    $50,000,000,
      (y) in no event shall the aggregate amount of the Commitments at any time
      exceed $600,000,000 and (z) no Default shall have occurred and be
      continuing on such Commitment Increase Date or shall result from such Commitment
      Increase. The Agent shall notify the Lenders and any Eligible Assignees
      requested by the Company and acceptable to the Agent as potential Assuming
      Lenders hereunder of the proposed Commitment Increase promptly upon the Agent's
      receipt of any such notice. It shall be in each Lender's sole discretion whether
      to increase its Commitment hereunder in connection with the proposed Commitment
      Increase. No later than 10 Business Days after its receipt of the Company's
      notice, each Lender that is willing to increase its Commitment hereunder (each
      such Lender being an "Increasing
      Lender")
      shall
      deliver to the Agent a notice in which such Lender shall set forth the maximum
      increase in its Commitment to which such Lender is willing to agree, and the
      Agent shall promptly provide to the Company a copy of such Increasing Lender's
      notice. The Agent shall cooperate with the Company in discussions with the
      Lenders and Eligible Assignees with a view to arranging the proposed Commitment
      Increase through the increase of the Commitments of one or more of the Lenders
      and/or the addition of one or more Eligible Assignees acceptable to the Company
      and the Agent as Assuming Lenders and as parties to this Agreement; provided,
      however,
      that
      the minimum Commitment of each such Assuming Lender that becomes a party to
      this
      Agreement pursuant to this Section 2.05(c) shall be $10,000,000; and
provided further
      that any
      allocations of Commitments shall be determined by the Company.

     

    (ii)  If
      agreement is reached prior to the relevant Commitment Increase Date with any
      Increasing Lenders and Assuming Lenders as to a Commitment Increase (the amount
      of which may be less than (subject to the limitation set forth in clause (i)(x)
      of this Section 2.05(c)) but not greater than that amount specified in the
      applicable notice from the Company), the Company shall deliver, no later than
      one Business Day prior to the Commitment Increase Date, a notice thereof in
      reasonable detail to the Agent (and the Agent shall give notice thereof to
      the
      Lenders, including any Assuming Lenders). The Assuming Lenders, if any, shall
      become Lenders hereunder as of the Commitment Increase Date and the Commitments
      of any Increasing Lenders and such Assuming Lenders shall become or be, as
      the
      case may be, as of the Commitment Increase Date, the amounts specified in the
      notice delivered by the Company to the Agent; provided,
      however,
      that:

     

    (x) the
      Agent
      shall have received on or prior to 9:00 A.M. (New York City time) on the
      Commitment Increase Date (A) if requested by an Assuming Lender or an Increasing
      Lender in accordance with Section 2.18(a), a duly executed Revolving Credit
      Note
      from each Borrower, dated as of the Commitment Increase Date and in
      substantially the form of Exhibit A-1 hereto for such Assuming Lender, and
      dated
      the date to which interest on the existing Revolving Credit Note of such
      Borrower shall have been paid and in substantially the form of Exhibit A-1
      hereto for such Increasing Lender, in each case in an amount equal to the
      Commitment of such Assuming Lender and such Increasing Lender after giving
      effect to such Commitment Increase, (B) a certificate of a duly authorized
      officer of the Company stating that no event has occurred and is continuing,
      or
      would result from such Commitment Increase, that constitutes a Default, and
      that each of the other applicable conditions to such Commitment Increase set
      forth in this Section 2.05(c) to be fulfilled by the Company has been satisfied
      and (C) an opinion of counsel for the Company in substantially the form of
      Exhibit G hereto, dated the Commitment Increase Date (with copies for each
      Lender, including each Assuming Lender);

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        22

      

    

     

    (y) with
      respect to each Assuming Lender, the Agent shall have received, on or prior
      to
      9:00 A.M. (New York City time) on the Commitment Increase Date, an appropriate
      Assumption Agreement in substantially the form of Exhibit D hereto, duly
      executed by such Assuming Lender and the Company, and acknowledged by the Agent;
      and

     

    (z) each
      Increasing Lender shall have delivered to the Agent, on or prior to 9:00 A.M.
      (New York City time) on the Commitment Increase Date, (A) its existing Revolving
      Credit Note or Notes, if any, and (B) confirmation in writing satisfactory
      to
      the Agent as to its increased Commitment, with a copy of such confirmation
      to
      the Company.

     

    (iii)  Upon
      its
      receipt of confirmation from a Lender that it is increasing its Commitment
      hereunder, together with the appropriate Revolving Credit Note or Notes, if
      any,
      certificate and opinion referred to in clause (ii)(x) above, the Agent shall
      (A)
      record the information contained therein in the Register and (B) give prompt
      notice thereof to the Company. Upon its receipt of an Assumption Agreement
      executed by an Assuming Lender representing that it is an Eligible Assignee,
      together with the appropriate Revolving Credit Note or Notes, certificate and
      opinion referred to in clause (ii)(x) above, the Agent shall, if such Assumption
      Agreement has been completed and is in substantially the form of Exhibit D
      hereto, (x) accept such Assumption Agreement, (y) record the information
      contained therein in the Register and (z) give prompt notice thereof to the
      Company.

     

    (iv)  In
      the
      event that the Agent shall not have received notice from the Company as to
      such
      agreement on or prior to the Commitment Increase Date or the Company shall,
      by
      notice to the Agent prior to the Commitment Increase Date, withdraw its proposal
      for a Commitment Increase or any of the actions provided for above in clauses
      (ii)(x) through (ii)(z) shall not have occurred by 9:00 A.M. (New York City
      time) on the Commitment Increase Date, such proposal by the Company shall be
      deemed not to have been made. In such event, any actions theretofore taken
      under
      clauses (ii)(x) through (ii)(z) above shall be deemed to be of no effect and
      all
      the rights and obligations of the parties shall continue as if no such proposal
      had been made.

     

    (v)  In
      the
      event that the Agent shall have received notice from the Company as to such
      agreement on or prior to the Commitment Increase Date and each of the actions
      provided for in clauses (ii)(x) through (ii)(z) above shall have occurred by
      9:00 A.M. (New York City time) on the Commitment Increase Date, the Agent shall
      notify the Lenders (including any Assuming Lenders) of the occurrence of the
      Commitment Increase Date promptly and in any event by 10:00 A.M. (New York
      City
      time) on such date by telecopier, telex or cable. Each Increasing Lender and
      each Assuming Lender shall, before 11:00 A.M. (New York City time) on the
      Commitment Increase Date, make available for the account of its Applicable
      Lending Office to the Agent at the Agent's Account, in same day funds, in the
      case of such Assuming Lender, an amount equal to such Assuming Lender's ratable
      portion of the Revolving Credit Borrowings then outstanding (calculated based
      on
      its Commitment as a percentage of the aggregate Commitments outstanding after
      giving effect to the relevant Commitment Increase) and, in the case of such
      Increasing Lender, an amount equal to the excess of (i) such Increasing Lender's
      ratable portion of the Revolving Credit Borrowings then outstanding (calculated
      based on its

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        23

      

    

     

    Commitment
      as a percentage of the aggregate Commitments outstanding after giving effect
      to
      the relevant Commitment Increase) over (ii) such Increasing Lender's
      ratable portion of the Revolving Credit Borrowings then outstanding (calculated
      based on its Commitment (without giving effect to the relevant Commitment
      Increase) as a percentage of the aggregate Commitments without giving effect
      to
      the relevant Commitment Increase). After the Agent's receipt of such funds
      from
      each such Increasing Lender and each such Assuming Lender, the Agent will
      promptly thereafter cause to be distributed like funds to the other Lenders
      for
      the account of their respective Applicable Lending Offices in an amount to
      each
      other Lender such that the aggregate amount of the outstanding Revolving Credit
      Advances owing to each Lender after giving effect to such distribution equals
      such Lender's ratable portion of the Revolving Credit Borrowings then
      outstanding (calculated based on such Lender's Commitment as a percentage of
      the
      aggregate Commitments outstanding after giving effect to the relevant Commitment
      Increase). If the Commitment Increase Date shall occur on a date that is not
      the
      last day of the Interest Period for all Eurodollar Rate Advances then
      outstanding, (a) the Company shall pay any amounts owing pursuant to Section
      9.04(d) as a result of the distributions to Lenders under this Section
      2.05(c)(v) and (b) for each Revolving Credit Borrowing comprised of Eurodollar
      Rate Advances, the respective Revolving Credit Advances made by the Increasing
      Lenders and the Assuming Lenders pursuant to this Section 2.05(c)(v) shall
      be
      Base Rate Advances until the last day of the then existing Interest Period
      for
      such Revolving Credit Borrowing.

     

    SECTION
      2.06.   Repayment
      of Revolving Credit Advances.
      Each
      Borrower shall repay to the Agent for the ratable account of the Lenders on
      the
      Termination Date the aggregate principal amount of the Revolving Credit Advances
      then outstanding in respect of such Borrower.

     

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

     

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

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        24

      

    

     

     

    (b)  Default
      Interest.
      Upon
      the occurrence and during the continuance of an Event of Default under Section
      6.01(a), each Borrower shall pay interest on (i) the unpaid principal
      amount of each Revolving Credit Advance owing by such Borrower to each Lender,
      payable in arrears on the dates referred to in clause (a)(i) or (a)(ii)
      above, at a rate per annum equal at all times to 2% per annum above the rate
      per
      annum required to be paid on such Revolving Credit Advance pursuant to
      clause (a)(i) or (a)(ii) above and (ii) to the fullest extent
      permitted by law, the amount of any interest, fee or other amount payable
      hereunder by such Borrower that is not paid when due, from the date such amount
      shall be due until such amount shall be paid in full, payable in arrears on
      the
      date such amount shall be paid in full and on demand, at a rate per annum equal
      at all times to 2% per annum above the rate per annum required to be paid on
      Base Rate Advances pursuant to clause (a)(i) above.

     

    (c)  Additional
      Interest on Eurodollar Rate Advances.
      The
      applicable Borrower shall pay to each Lender, so long as such Lender shall
      be
      required under regulations of the Board of Governors of the Federal Reserve
      System to maintain reserves with respect to liabilities or assets consisting
      of
      or including Eurocurrency Liabilities, additional interest on the unpaid
      principal amount of each Eurodollar Rate Advance of such Lender to such
      Borrower, from the date of such Advance until such principal amount is paid
      in
      full, at an interest rate per annum equal at all times to the remainder obtained
      by subtracting (i) the Eurodollar Rate for the applicable Interest Period for
      such Advance from (ii) the rate obtained by dividing such Eurodollar Rate by
      a
      percentage equal to 100% minus
      the
      Eurodollar Rate Reserve Percentage of such Lender for such Interest Period,
      payable on each date on which interest is payable on such Advance. Such
      additional interest shall be determined by such Lender and notified in
      reasonable detail to such Borrower through the Agent.

     

    SECTION
      2.08.   Interest
      Rate Determination.
      (a)
      Each
      Reference Bank agrees to furnish to the Agent timely information for the purpose
      of determining each Eurodollar Rate and each LIBO Rate. If any one or more
      of
      the Reference Banks shall not furnish such timely information to the Agent
      for
      the purpose of determining any such interest rate, the Agent shall determine
      such interest rate on the basis of timely information furnished by the remaining
      Reference Banks. The Agent shall give prompt notice to the relevant Borrowers
      and the Lenders of the applicable interest rate determined by the Agent for
      purposes of Section 2.07(a)(i) or (ii), and the rate, if any, furnished by
      each Reference Bank for the purpose of determining the interest rate under
      Section 2.07(a)(ii).

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        25

      

    

     

     

    (c)  If
      any
      Borrower, in requesting a Revolving Credit Borrowing comprised of Eurodollar
      Rate Advances, shall fail to select the duration of the Interest Period for
      such
      Eurodollar Rate Advances in accordance with the provisions contained in the
      definition of "Interest Period" in Section 1.01, the Agent will forthwith
      so notify such Borrower and the Lenders and such Advances will automatically,
      on
      the last day of the then existing Interest Period therefor, Convert into Base
      Rate Advances.

     

    (d)  On
      the
      date on which the aggregate unpaid principal amount of Eurodollar Rate Advances
      comprising any Borrowing shall be reduced, by payment or prepayment or
      otherwise, to less than $5,000,000, such Advances shall automatically, on the
      last day of the then existing Interest Period therefor, Convert into Base Rate
      Advances.

     

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

     

    (f)  If
      Moneyline Telerate Markets Page 3750 is unavailable and fewer than two Reference
      Banks furnish timely information to the Agent for determining the Eurodollar
      Rate or LIBO Rate for any Eurodollar Rate Advances or LIBO Rate Advances, as
      the
      case may be, such Eurodollar Rate or LIBO Rate shall be the interest rate per
      annum determined by the Agent to be the offered rate per annum at which deposits
      in U.S. dollars for a maturity comparable to the Interest Period for such
      Eurodollar Rate Advances or LIBO Rate Advances, as the case may be, appears
      on
      the Telerate Page 3750 (or any successor page) as of 11:00 A.M. (London time)
      two Business Days prior to the first day of such Interest Period (the
      "Telerate");
      provided
      that if
      the Telerate is not then available:

     

    (i)  the
      Agent
      shall forthwith notify the relevant Borrower and the Lenders that the interest
      rate cannot be determined for such Eurodollar Rate Advances or LIBO Rate
      Advances, as the case may be;

     

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

     

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

     

    SECTION
      2.09.   Optional
      Conversion of Revolving Credit Advances.
      Any
      Borrower may on any Business Day, upon notice given to the Agent not later
      than
      11:00 A.M. (New York City time) on the third Business Day prior to the
      date of the proposed Conversion and subject to the provisions of
      Sections 2.08 and 2.12, Convert all Revolving Credit Advances of one Type
      comprising the same Borrowing into Revolving Credit Advances of the other Type;
      provided,
      however,
      that
      any Conversion of Eurodollar Rate Advances into Base Rate Advances 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        26

      

    

     

    shall
      be
      made only on the last day of an Interest Period for such Eurodollar Rate
      Advances. Each such notice of a Conversion shall, within the restrictions
      specified above, specify (i) the date of such Conversion, (ii) the
      Revolving Credit Advances to be Converted, and (iii) if such Conversion is
      into Eurodollar Rate Advances, the duration of the initial Interest Period
      for
      each such Advance. Each notice of Conversion shall be irrevocable and binding
      on
      the relevant Borrower.

     

    SECTION
      2.10.   Optional
      Prepayments of Revolving Credit Advances.
      Any
      Borrower may, upon notice to the Agent stating the proposed date and aggregate
      principal amount of the prepayment, given not later than 11:00 A.M. (New York
      City time) on the second Business Day prior to the date of such proposed
      prepayment, in the case of Eurodollar Rate Advances, and not later than 11:00
      A.M. (New York City time) on the day of such proposed prepayment, in the case
      of
      Base Rate Advances, and, if such notice is given such Borrower shall, prepay
      the
      outstanding principal amount of the Revolving Credit Advances comprising part
      of
      the same Revolving Credit Borrowing in whole or ratably in part, together with
      accrued interest to the date of such prepayment on the principal amount prepaid;
      provided,
      however,
      that
      (x) each partial prepayment shall be in an aggregate principal amount of
      $10,000,000 or an integral multiple of $1,000,000 in excess thereof and
      (y) in the event of any such prepayment of a Eurodollar Rate Advance, such
      Borrower shall be obligated to reimburse the Lenders in respect thereof pursuant
      to Section 9.04(d). Each notice of prepayment by a Designated Subsidiary
      shall be given to the Agent through the Company.

     

    SECTION
      2.11.   Increased
      Costs.
      (a)
      If,
      after the date hereof, due to either (i) the introduction of or any change
      (other than any change by way of imposition or increase of reserve requirements
      included in the Eurodollar Rate Reserve Percentage) in or in the interpretation
      of any law or regulation or (ii) the compliance with any guideline or
      request from any central bank or other governmental authority having
      jurisdiction over any Lender (whether or not having the force of law), there
      shall be any increase in the cost to any Lender (which cost such Lender
      reasonably determines in good faith is material) of agreeing to make or making,
      funding or maintaining Eurodollar Rate Advances or LIBO Rate Advances (excluding
      for purposes of this Section 2.11 any such increased costs resulting from (i)
      Taxes or Other Taxes (as to which Section 2.14 shall govern) and (ii) Excluded
      Taxes), then the Borrower of such Advances shall from time to time, upon demand
      by such Lender made not later than 60 days after such Lender obtains knowledge
      of such increased costs (with a copy of such demand to the Agent), pay to the
      Agent for the account of such Lender additional amounts sufficient to compensate
      such Lender for such increased cost. Each Lender agrees that if such Lender
      requests compensation for any amounts owing from a Borrower for such increased
      cost under this Section 2.11(a), such Lender shall, prior to a Borrower being
      required to pay such increased costs, furnish to such Borrower a certificate
      of
      a senior financial officer of such Lender verifying that such increased cost
      was
      actually incurred by such Lender and the amount of such increased cost and
      setting forth in reasonable detail the basis therefore (with a copy of such
      certificate to the Agent); provided,
      however,
      that
      such certificate shall be conclusive and binding for all purposes, absent
      manifest error.

     

    (b)  If,
      after
      the date hereof, any Lender determines that compliance with any law or
      regulation or any guideline or request from any central bank or other
      governmental authority having jurisdiction over any Lender (whether or not
      having the force of law) affects or would

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        27

      

    

     

     

    affect
      the amount of capital required or expected to be maintained by such Lender
      or
      any corporation controlling such Lender and that the amount of such capital
      is
      increased by or based upon the existence of such Lender's commitment to lend
      hereunder and other commitments of this type, then, upon demand by such Lender
      made not later than 60 days after such Lender obtains knowledge of such increase
      in capital (with a copy of such demand to the Agent), the Company shall pay
      to
      the Agent for the account of such Lender, from time to time as specified by
      such
      Lender, additional amounts sufficient to compensate such Lender or such
      corporation in the light of such circumstances, to the extent that such Lender
      reasonably determines such increase in capital to be allocable to the existence
      of such Lender's commitment to lend hereunder. Each Lender agrees that if such
      Lender requests compensation for any amounts owing from the Company for such
      increase in capital under this Section 2.11(b), such Lender shall, prior to
      a
      Borrower being required to compensate such Lender for such increase in capital,
      furnish to the Company a certificate of a senior financial officer of such
      Lender verifying that such increase in capital was actually required by such
      Lender and the amount of such increase in capital and setting forth in
      reasonable detail the basis therefore (with a copy of such certificate to the
      Agent); provided,
      however,
      that
      such certificate shall be conclusive and binding for all purposes, absent
      manifest error.

     

    (c)  No
      Borrower shall be obligated to pay under this Section 2.11 any amounts which
      relate to costs or increases of capital incurred prior to the 12 months
      immediately preceding the date of demand for payment of such amounts, unless
      the
      applicable law, regulation, guideline or request resulting in such costs or
      increases of capital is imposed retroactively. In the case of any law,
      regulation, guideline or request which is imposed retroactively, the Lender
      making demand for payment of any amount under this Section 2.11 shall notify
      the
      related Borrower not later than 12 months from the date that such Lender should
      reasonably have known (but promptly upon gaining knowledge of such increase)
      of
      such law, regulation, guideline or request and such Borrower's obligation to
      compensate such Lender for such amount is contingent upon such Lender's so
      notifying such Borrower; provided,
      however,
      that
      any failure by such Lender to provide such notice shall not affect such
      Borrower's obligations under this Section 2.11 with respect to amounts resulting
      from costs or increases of capital incurred after the date which occurs 12
      months immediately preceding the date on which such Lender notified such
      Borrower of such law, regulation, guideline or request.

     

    (d)  If
      any
      Lender shall subsequently recoup any costs (other than from a Borrower) for
      which such Lender has theretofore been compensated by a Borrower under this
      Section 2.11, such Lender shall remit to such Borrower an amount equal to the
      amount of such recoupment as reasonably determined by such Lender.

     

    SECTION
      2.12.   Illegality.
      Notwithstanding any other provision of this Agreement, if any Lender shall
      after
      the date hereof, notify the Agent that the introduction of or any change in
      or
      in the interpretation of any law or regulation makes it unlawful, or any central
      bank or other governmental authority having jurisdiction over any Lender asserts
      that it is unlawful, for any Lender or its Eurodollar Lending Office to perform
      its obligations hereunder to make Eurodollar Rate Advances or LIBO Rate Advances
      or to fund or maintain Eurodollar Rate Advances or LIBO Rate Advances hereunder,
      (i) each Eurodollar Rate Advance or LIBO Rate Advance, as the case may be,
      will automatically, upon such demand, Convert into a Base Rate Advance or an
      Advance that bears interest at the rate set forth in Section 2.07(a)(i), as
      the case 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        28

      

    

     

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

     

    SECTION
      2.13.   Payments
      and Computations.
      (a)
      Each
      Borrower shall make each payment hereunder and relating to the Advances not
      later than 1:00 P.M. (New York City time) on the day when due in U.S.
      dollars to the Agent at the Agent's Account in same day funds. The Agent will
      promptly thereafter cause to be distributed like funds relating to the payment
      of principal or interest or facility fees ratably (other than amounts payable
      pursuant to Section 2.03, 2.05(c), 2.07(c), 2.11, 2.14 or 9.04(d)) to the
      Lenders for the account of their respective Applicable Lending Offices, and
      like
      funds relating to the payment of any other amount payable to any Lender to
      such
      Lender for the account of its Applicable Lending Office, in each case to be
      applied in accordance with the terms of this Agreement. Upon its acceptance
      of
      an Assignment and Acceptance and recording of the information contained therein
      in the Register pursuant to Section 9.07(c), from and after the effective
      date specified in such Assignment and Acceptance, the Agent shall make all
      payments hereunder and relating to the Advances in respect of the interest
      assigned thereby to the Lender assignee thereunder, and the parties to such
      Assignment and Acceptance shall make all appropriate adjustments in such
      payments for periods prior to such effective date directly between themselves.
      Upon any Assuming Lender becoming a Lender hereunder as a result of the
      effectiveness of a Commitment Increase pursuant to Section 2.05(c), and upon
      the
      Agent's receipt of such Lender's Assumption Agreement and recording the
      information contained therein in the Register, from and after the relevant
      Increase Date, the Agent shall make all payments hereunder and relating to
      the
      Advances in respect of the interest assumed thereby to such Assuming
      Lender.

     

    (b)  All
      computations of interest based on the Base Rate shall be made by the Agent
      on
      the basis of a year of 365 or 366 days, as the case may be, and all computations
      of interest based on the Eurodollar Rate or the Federal Funds Rate and of
      facility fees shall be made by the Agent on the basis of a year of 360 days,
      in
      each case for the actual number of days (including the first day but excluding
      the last day) occurring in the period for which such interest or facility fees
      are payable. Each determination by the Agent of an interest rate hereunder
      shall
      be conclusive and binding for all purposes, absent manifest error.

     

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

     

    (d)  Unless
      the Agent shall have received notice from a Borrower prior to the date on which
      any payment is due to the Lenders from such Borrower hereunder that such
      Borrower will not make such payment in full, the Agent may assume that such
      Borrower has made such payment in full to the Agent on such date and the Agent
      may, in reliance upon such assumption, cause to be distributed to each Lender
      on
      such due date an amount equal to the amount then due 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        29

      

    

     

     

    such
      Lender. If and to the extent such Borrower shall not have so made such payment
      in full to the Agent, each Lender shall repay to the Agent forthwith on demand
      such amount distributed to such Lender together with interest thereon, for
      each
      day from the date such amount is distributed to such Lender until the date
      such
      Lender repays such amount to the Agent, at the Federal Funds Rate.

     

    SECTION
      2.14.   Taxes.
      (a)
      Any and
      all payments by each Borrower hereunder or relating to the Advances shall be
      made, in accordance with Section 2.13, free and clear of and without
      deduction for any and all present or future taxes, levies, imposts, deductions,
      charges or withholdings, and all liabilities with respect thereto, excluding,
      in the
      case of each Lender and the Agent, taxes imposed on its overall net income,
      and
      franchise taxes imposed on it in lieu of net income taxes, by the jurisdiction
      under the laws of which such Lender or the Agent (as the case may be) is
      organized or any political subdivision thereof or by any jurisdiction in which
      such Lender or the Agent (as the case may be) is doing business that is
      unrelated to this Agreement and such net income taxes or franchise taxes that
      would not have been imposed if such Lender or the Agent (as the case may be)
      had
      not been conducting such unrelated business and, in the case of each Lender,
      taxes imposed on its overall net income, and franchise taxes imposed on it
      in
      lieu of net income taxes, by the jurisdiction of such Lender's Applicable
      Lending Office or any political subdivision thereof (all such excluded taxes
      being hereinafter referred to as "Excluded
      Taxes"
      and all
      such non-excluded taxes, levies, imposts, deductions, charges, withholdings
      and
      liabilities in respect of payments hereunder or relating to the Advances being
      hereinafter referred to as "Taxes").
      If
      any Borrower shall be required by law to deduct any Taxes from or in respect
      of
      any sum payable hereunder or relating to the Advances to any Lender or the
      Agent, (i) the sum payable shall be increased as may be necessary so that
      after making all required deductions for Taxes (including deductions for Taxes
      applicable to additional sums payable under this Section 2.14) such Lender
      or the Agent (as the case may be) receives an amount equal to the sum it would
      have received had no such deductions been made, (ii) such Borrower shall
      make such deductions and (iii) such Borrower shall pay the full amount
      deducted to the relevant taxation authority or other authority in accordance
      with applicable law.

     

    (b)  In
      addition, each Borrower agrees to pay any present or future stamp or documentary
      taxes or any other excise or property taxes, charges or similar levies that
      arise from any payment made hereunder or relating to the Advances or from the
      execution, delivery or registration of, performing under, or otherwise with
      respect to, this Agreement or relating to the Advances (hereinafter referred
      to
      as "Other
      Taxes").

     

    (c)  Each
      Borrower shall indemnify each Lender and the Agent for the full amount of Taxes
      or Other Taxes (including, without limitation, any taxes imposed by any
      jurisdiction on amounts payable under this Section 2.14) imposed on or paid
      by such Lender or the Agent (as the case may be) and any liability for
      penalties, interest and reasonable expenses arising therefrom or with respect
      thereto. This indemnification shall be made within 30 days from the date such
      Lender or the Agent (as the case may be) makes written demand therefor;
provided
      that
      such Lender shall, prior to a Borrower being required to indemnify such Lender
      pursuant to this Section 2.14(c), furnish to such Borrower a certificate of
      a
      senior financial officer of such Lender verifying that such Taxes or Other
      Taxes
      were actually incurred by such Lender and the amount of such Taxes or Other
      Taxes and setting forth in reasonable detail the basis therefor (with a

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        30

      

    

     

    copy
      of
      such certificate to the Agent), provided,
      however,
      that
      such certificate shall be conclusive and binding for all purposes, absent
      manifest error.

     

    (d)  Within
      30
      days after the date of any payment of Taxes, each Borrower shall furnish to
      the
      Agent, at its address referred to in Section 9.02, the original or a
      certified copy of a receipt evidencing payment thereof. In the case of any
      payment hereunder or relating to the Advances by or on behalf of any Borrower
      through an account or branch outside the United States or by or on behalf of
      any
      Borrower by a payor that is not a United States person, if such Borrower
      determines that no Taxes are payable in respect thereof, such Borrower shall
      furnish, or shall cause such payor to furnish, to the Agent, at such address,
      an
      opinion of counsel acceptable to the Agent stating that such payment is exempt
      from Taxes. For purposes of this subsection (d) and subsection (e), the terms
      "United
      States"
      and
      "United
      States person"
      shall
      have the meanings specified in Section 7701 of the Internal Revenue
      Code.

     

    (e)  Each
      Lender organized under the laws of a jurisdiction outside the United States,
      on
      or prior to the date of its execution and delivery of this Agreement in the
      case
      of each Initial Lender and on the date of the Assignment and Acceptance or
      the
      Assumption Agreement, as the case may be, pursuant to which it becomes a Lender
      in the case of each other Lender, and from time to time thereafter as requested
      in writing by any Borrower (but only so long as such Lender remains lawfully
      able to do so), shall provide the Agent and each Borrower with two original
      Internal Revenue Service forms 8ECI or 8BEN, as appropriate, or any
      successor or other form prescribed by the Internal Revenue Service, certifying
      that such Lender is exempt from or entitled to a reduced rate of United States
      withholding tax on payments pursuant to this Agreement or relating to the
      Advances. If the forms provided by a Lender at the time such Lender first
      becomes a party to this Agreement indicates a United States interest withholding
      tax rate in excess of zero, withholding tax at such rate shall be considered
      excluded from Taxes unless and until such Lender provides the appropriate forms
      certifying that a lesser rate applies, whereupon withholding tax at such lesser
      rate only shall be considered excluded from Taxes for periods governed by such
      form; provided,
      however,
      that,
      if at the date of the Assignment and Acceptance or the Assumption Agreement,
      as
      the case may be, pursuant to which a Lender assignee becomes a party to this
      Agreement, the Lender assignor was entitled to payments under
      subsection (a) in respect of United States withholding tax with respect to
      interest paid at such date, then, to such extent, the term Taxes shall include
      (in addition to withholding taxes that may be imposed in the future or other
      amounts otherwise includable in Taxes) United States withholding tax, if any,
      applicable with respect to the Lender assignee on such date.

     

    (f)  For
      any
      period with respect to which a Lender has failed to provide each Borrower with
      the appropriate form described in Section 2.14(e) (other than
      if such
      failure is due to a change in law occurring subsequent to the date on which
      a
      form originally was required to be provided, or if such form otherwise is not
      required under the first sentence of subsection (e) above), such Lender
      shall not be entitled to indemnification under Section 2.14(a) or (c) with
      respect to Taxes imposed by the United States by reason of such failure;
provided,
      however,
      that
      should a Lender become subject to Taxes because of its failure to deliver a
      form
      required hereunder, each Borrower agrees to take such steps as such Lender
      shall
      reasonably request to assist such Lender to recover such Taxes.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        31

      

    

     

     

     

    (g)  If
      any
      Lender determines, in its sole discretion, that it has actually and finally
      realized, by reason of a refund, deduction or credit of any Taxes or Other
      Taxes
      paid or reimbursed by a Borrower pursuant to subsection (a) or (c) above in
      respect of payments under the Credit Agreement or relating to the Advances,
      a
      current monetary benefit that it would otherwise not have obtained, and that
      would result in the total payments under this Section 2.14 exceeding the amount
      needed to make such Lender whole, such Lender shall pay to such Borrower, with
      reasonable promptness following the date on which it actually realizes such
      benefit, an amount equal to the lesser of the amount of such benefit or the
      amount of such excess, in each case net of all reasonable out-of-pocket expenses
      in securing such refund, deduction or credit.

     

    SECTION
      2.15.   Sharing
      of Payments, Etc.
      If
      any
      Lender shall obtain any payment (whether voluntary, involuntary, through the
      exercise of any right of set-off, or otherwise) on account of the Revolving
      Credit Advances owing to it (other than pursuant to Section 2.05(c), 2.07(c),
      2.11, 2.14 or 9.04(d)) in excess of its ratable share of payments on account
      of
      the Revolving Credit Advances obtained by all the Lenders, such Lender shall
      forthwith purchase from the other Lenders such participations in the Revolving
      Credit Advances owing to them as shall be necessary to cause such purchasing
      Lender to share the excess payment ratably with each of them; provided,
      however,
      that if
      all or any portion of such excess payment is thereafter recovered from such
      purchasing Lender, such purchase from each Lender shall be rescinded and such
      Lender shall repay to the purchasing Lender the purchase price to the extent
      of
      such recovery together with an amount equal to such Lender's ratable share
      (according to the proportion of (i) the amount of such Lender's required
      repayment to (ii) the total amount so recovered from the purchasing Lender)
      of any interest or other amount paid or payable by the purchasing Lender in
      respect of the total amount so recovered. Each Borrower agrees that any Lender
      so purchasing a participation from another Lender pursuant to this
      Section 2.15 may, to the fullest extent permitted by law, exercise all its
      rights of payment (including the right of set-off) with respect to such
      participation as fully as if such Lender were the direct creditor of such
      Borrower in the amount of such participation.

     

    SECTION
      2.16.   Use
      of
      Proceeds.
      The
      proceeds of the Advances shall be available (and each Borrower agrees that
      it
      shall use such proceeds) solely (i) for general corporate purposes of such
      Borrower and its Subsidiaries and (ii) for acquisitions by such Borrower that
      have been approved by the Board of Directors (or comparable governing group)
      of
      the Person that is to be acquired by such Borrower.

     

    SECTION
      2.17.   Mandatory
      Assignment by a Lender; Mitigation.
      If any
      Lender requests from a Borrower either payment of additional interest on
      Eurodollar Rate Advances pursuant to Section 2.07(c), or reimbursement for
      increased costs pursuant to Section 2.11, or payment of or reimbursement for
      Taxes pursuant to Section 2.14, or if any Lender notifies the Agent that it
      is
      unlawful for such Lender or its Eurodollar Lending Office to perform its
      obligations hereunder pursuant to Section 2.12, (i) such Lender will, upon
      three
      Business Days' notice by such Borrower to such Lender and the Agent, to the
      extent not inconsistent with such Lender's internal policies and applicable
      legal and regulatory restrictions, use reasonable efforts to make, fund or
      maintain its Eurodollar Rate Advances through another Eurodollar Lending Office
      of such Lender if (A) as a result thereof the additional amounts required to
      be
      paid pursuant to Section 2.07(c), 2.11 or 2.14, as applicable, in respect of
      such Eurodollar Rate

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        32

      

    

     

     

    Advances
      would be materially reduced or the provisions of Section 2.12 would not apply
      to
      such Lender, as applicable, and (B) as determined by such Lender in good faith
      but in its sole discretion, the making or maintaining of such Eurodollar Rate
      Advances through such other Eurodollar Lending Office would not otherwise
      materially and adversely affect such Eurodollar Rate Advances or such Lender
      and
      (ii) unless such Lender has therefore taken steps to remove or cure, and has
      removed or cured (to the extent not inconsistent with internal policies and
      applicable legal and regulatory restrictions), the conditions creating such
      obligation to pay such additional amounts or the circumstances described in
      Section 2.12, such Lender will, upon at least five Business Days' notice from
      the Company to such Lender and the Agent, assign, pursuant to and in accordance
      with the provisions of Section 9.07, to one or more Eligible Assignees
      designated by the Company all, but not less than all, of the Revolving Credit
      Advances then owing to such Lender and all, but not less than all, of such
      Lender's rights and obligations hereunder (other than rights in respect of
      such
      Lender's outstanding Competitive Bid Advance), without recourse to or warranty
      by, or expense to, such Lender, for a purchase price equal to the outstanding
      principal amount of each such Advance then owing to such Lender plus
      any
      accrued but unpaid interest thereon and any accrued but unpaid facility fees
      owing thereto and, in addition, all additional costs reimbursements, expense
      reimbursements and indemnities, if any, owing in respect of such Lender's
      Commitment hereunder at such time shall be paid to such Lender.

     

    SECTION
      2.18.   Evidence
      of Debt.
      (a)  Each
      Lender shall maintain in accordance with its usual practice an account or
      accounts evidencing the indebtedness of each Borrower to such Lender resulting
      from each Revolving Credit Advance owing to such Lender from time to time,
      including the amounts of principal and interest payable and paid to such Lender
      from time to time hereunder in respect of Revolving Credit Advances. Each
      Borrower agrees that upon reasonable notice by any Lender to such Borrower
      (with
      a copy of such notice to the Agent) to the effect that a Revolving Credit Note
      is required or appropriate in order for such Lender to evidence (whether for
      purposes of pledge, enforcement or otherwise) the Revolving Credit Advances
      owing to, or to be made by, such Lender, such Borrower shall promptly execute
      and deliver to such Lender a Revolving Credit Note payable to the order of
      such
      Lender in a principal amount up to the Commitment of such Lender.

     

    (b)  The
      Register maintained by the Agent pursuant to Section 9.07(d) shall include
      a control account, and a subsidiary account for each Lender, in which accounts
      (taken together) shall be recorded (i) the date and amount of each
      Borrowing made hereunder, the type of Advances comprising such Borrowing and,
      if
      appropriate, the Interest Period applicable thereto, (ii) the terms of each
      Assumption Agreement and each Assignment and Acceptance delivered to and
      accepted by it, (iii) the amount of any principal or interest due and
      payable or to become due and payable from such Borrower to each Lender hereunder
      and (iv) the amount of any sum received by the Agent from each Borrower
      hereunder and each Lender's share thereof.

     

    (c)  Entries
      made in good faith by the Agent in the Register pursuant to subsection (b)
      above, and by each Lender in its account or accounts pursuant to
      subsection (a) above, shall be prima facie
      evidence
      of the amount of principal and interest due and payable or to become due and
      payable from each Borrower to, in the case of the Register, each Lender and,
      in
      the case of such account or accounts, such Lender, under this Agreement, absent
      manifest error; provided,
      however,
      that
      the failure of the Agent or such Lender to make an entry, or any finding

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        33

      

    

     

    that
      an
      entry
      is incorrect, in the Register or such account or accounts shall not limit or
      otherwise affect the obligations of any Borrower under this
      Agreement.

     

    ARTICLE
      III   

     

    CONDITIONS
      TO EFFECTIVENESS AND LENDING

     

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

     

                            
      (a)  There
      shall have occurred no Material Adverse Change since December 31, 2005
      except as disclosed by the Company in writing to the Lenders prior to the date
      of execution of this Agreement.

     

                             (b)  There
      shall exist no action, suit, investigation, litigation or proceeding affecting
      the Company or any of its Subsidiaries pending or threatened before any court,
      governmental agency or arbitrator that (i) would be reasonably likely to
      have a Material Adverse Effect other than the matters described on
      Schedule 3.01(b) hereto (the "Disclosed
      Litigation")
      or
      (ii) purports to affect the legality, validity or enforceability of this
      Agreement or any Note or the consummation of the transactions contemplated
      hereby, and there shall have been no material adverse change in the status,
      or
      financial effect on the Company and its Subsidiaries taken as a whole, of the
      Disclosed Litigation from that described on Schedule 3.01(b)
      hereto.

     

                            
      (c)  All
      governmental and third party consents and approvals necessary in connection
      with
      the transactions contemplated hereby shall have been obtained (without the
      imposition of any conditions that are not acceptable to the Lenders) and shall
      remain in effect, and no law or regulation shall be applicable in the reasonable
      judgment of the Lenders that restrains, prevents or imposes materially adverse
      conditions upon the transactions contemplated hereby.

     

    (d)  The
      Company shall have notified the Agent in writing as to the proposed Effective
      Date.

     

                             
      (e)  The
      Company shall have paid all accrued fees and expenses of the Agent and the
      Lenders that shall have been invoiced as of the Effective Date (including the
      accrued fees and expenses of counsel to the Agent), in each case solely to
      the
      extent such fees and expenses are required by other provisions of this Agreement
      to be so paid.

     

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

     

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

            

    

     

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

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        34

      

    

     

     

                           
      (g)  The
      Agent
      shall have received on or before the Effective Date the following, each dated
      such day, in form and substance reasonably satisfactory to the Agent and (except
      for the Revolving Credit Notes) in sufficient copies for each
      Lender:

     

    (i)  The
      Revolving Credit Notes of the Company to the order of the Lenders, respectively,
      to the extent requested by any Lender  pursuant to Section
      2.18.

     

     (ii)  Certified
      copies of the resolutions of the Board of Directors of the Company approving
      this Agreement (including the Commitment Increase contemplated by Section
      2.05(c)) and the Notes of the Company, and of all documents evidencing other
      necessary corporate action and governmental approvals, if any, with respect
      to
      this Agreement and such Notes.

     

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

     

     (iv)  A
      favorable opinion of Burton H. Snyder, Senior Vice President, General Counsel
      and Secretary of the Company, substantially in the form of Exhibit G hereto
      and as to such other matters as any Lender through the Agent may reasonably
      request.

     

    (v)  A
      favorable opinion of Shearman & Sterling LLP, counsel for the Agent, in
      form and substance satisfactory to the Agent.

     

    (vi)  Such
      other approvals, opinions or documents as any Lender, through the Agent, may
      reasonably request prior to the Effective Date.

     

    SECTION
      3.02.   Initial
      Borrowing of Each Designated Subsidiary.
      The
      obligation of each Lender to make an initial Advance to each Designated
      Subsidiary following any designation of such Designated Subsidiary as a Borrower
      hereunder pursuant to Section 9.08 is subject to the Agent's receipt on or
      before the date of such Initial Advance of each of the following, in form and
      substance satisfactory to the Agent and dated such date, and (except for the
      Revolving Credit Notes) in sufficient copies for each Lender:

     

                             (a)  The
      Revolving Credit Notes of such Borrower to the order of the Lenders,
      respectively, to the extent requested by any Lender pursuant to Section
      2.18.

     

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

     

                            
      (c)  A
      certificate of the Secretary or an Assistant Secretary of such Borrower
      certifying the names and true signatures of the officers of such Borrower
      authorized to

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        35

      

    

     

    sign
      this
      Agreement and the Notes of such Borrower and the other documents to be delivered
      hereunder.

     

                            
      (d)  A
      certificate signed by a duly authorized officer of the Company, dated as of
      the
      date of such initial Advance, certifying that such Borrower shall have obtained
      all governmental and third party authorizations, consents, approvals (including
      exchange control approvals) and licenses required under applicable laws and
      regulations necessary for such Borrower to execute and deliver this Agreement
      and the Notes of such Borrower and to perform its obligations
      thereunder.

     

    (e)  The
      Designation Letter of such Designated Subsidiary, substantially in the form
      of
      Exhibit E hereto.

     

                             
      (f)  With
      respect to each Designated Subsidiary that has its principal place of business
      outside of the United States of America, evidence of the Process Agent's
      acceptance of its appointment pursuant to Section 9.12(a) as the agent of such
      Borrower, substantially in the form of Exhibit F hereto.

     

                             
      (g)  A
      favorable opinion of counsel to such Designated Subsidiary, dated the date
      of
      such Initial Advance, substantially in the form of Exhibit H
      hereto.

     

     (h)  Such
      other approvals, opinions or documents as any Lender, through the Agent, may
      reasonably request.

     

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

     

    (i)  the
      representations and warranties of the Company contained in Section 4.01
      (except the representations set forth in the last sentence of
      subsection (e) thereof and in subsection (f) thereof (other than
      clause (i)(B) thereof)) are correct on and as of the date of such Revolving
      Credit Borrowing, before and after giving effect to such Revolving Credit
      Borrowing and to the application of the proceeds therefrom, as though made
      on
      and as of such date, and, if such Borrower is a Designated Subsidiary, the
      representations and warranties of such Borrower contained in its Designation
      Letter are correct on and as of the date of such Revolving Credit Borrowing,
      before and after giving effect to such Revolving Credit Borrowing and to the
      application of the proceeds therefrom, as though made on and as of such date,
      and

     

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

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        36

      

    

     

    SECTION
      3.04.   Conditions
      Precedent to Each Competitive Bid Borrowing.
      The
      obligation of each Lender that is to make a Competitive Bid Advance on the
      occasion of a Competitive Bid Borrowing to make such Competitive Bid Advance
      as
      part of such Competitive Bid Borrowing is subject to the conditions precedent
      that (a) the Agent shall have received the written confirmatory Notice of
      Competitive Bid Borrowing with respect thereto, (b) on or before the date
      of such Competitive Bid Borrowing, but prior to such Competitive Bid Borrowing,
      the Agent shall have received a Competitive Bid Note payable to the order of
      such Lender for each of the one or more Competitive Bid Advances to be made
      by
      such Lender as part of such Competitive Bid Borrowing, in a principal amount
      equal to the principal amount of the Competitive Bid Advance to be evidenced
      thereby and otherwise on such terms as were agreed to for such Competitive
      Bid
      Advance in accordance with Section 2.03, and (c) on the date of such
      Competitive Bid Borrowing the following statements shall be true (and each
      of
      the giving of the applicable Notice of Competitive Bid Borrowing and the
      acceptance by the Borrower requesting such Competitive Bid Borrowing of the
      proceeds of such Competitive Bid Borrowing shall constitute a representation
      and
      warranty by such Borrower that on the date of such Competitive Bid Borrowing
      such statements are true):

     

    (i)  the
      representations and warranties of the Company contained in Section 4.01
      (except the representations set forth in the last sentence of
      subsection (e) thereof and in subsection (f) thereof (other than
      clause (i)(B) thereof)) are correct on and as of the date of such
      Competitive Bid Borrowing, before and after giving effect to such Competitive
      Bid Borrowing and to the application of the proceeds therefrom, as though made
      on and as of such date, and, if such Borrower is a Designated Subsidiary, the
      representations and warranties of such Borrower contained in its Designation
      Letter are correct on and as of the date of such Competitive Bid Borrowing,
      before and after giving effect to such Competitive Bid Borrowing and to the
      application of the proceeds therefrom, as though made on and as of such
      date,

     

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

     

            
       (iii)  no
      event
      has occurred and no circumstance exists as a result of which the information
      concerning such Borrower that has been provided to
      the
      Agent and each Lender by such Borrower in connection herewith would include
      an
      untrue statement of a material fact or omit to state any material fact or any
      fact necessary to make the statements contained therein, in the light of the
      circumstances under which they were made, not misleading.

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        37

      

    

     

    ARTICLE
      IV   

     

    REPRESENTATIONS
      AND WARRANTIES

     

    SECTION
      4.01.   Representations
      and Warranties of the Company.
      The
      Company represents and warrants as follows:

     

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

     

                            
      (b)  The
      execution, delivery and performance by the Company of this Agreement and the
      Notes of the Company to be delivered by it,and  the consummation
      of the transactions contemplated hereby, are within the Company's corporate
      powers, have been duly authorized by all necessary corporate action, and do
      not
      contravene (i) the Company's charter or by-laws or (ii) any law or any
      contractual restriction binding on or affecting the Company, except where such
      contravention would not be reasonably likely to have a Material Adverse
      Effect.

     

                            
      (c)  No
      authorization or approval or other action by, and no notice to or filing with,
      any governmental authority or regulatory body or any other third party is
      required for the due execution, delivery and performance by the Company of
      this
      Agreement or the Notes of the Company to be delivered by it, except for those
      authorizations, approvals, actions, notices and filings (i) listed on
      Schedule 4.01(c) hereto, all of which have been duly obtained, taken, given
      or made and are in full force and effect and (ii) where the Company's failure
      to
      receive, take or make such authorization, approval, action, notice or filing
      would not have a Material Adverse Effect.

     

                            
      (d)  This
      Agreement has been, and each of the Notes of the Company to be delivered by
      it
      when delivered hereunder will have been, duly executed and delivered by the
      Company. This Agreement is, and each of the Notes of the Company when delivered
      hereunder will be, the legal, valid and binding obligation of the Company
      enforceable against the Company in accordance with their respective terms,
      subject to applicable bankruptcy, reorganization, insolvency, moratorium or
      similar laws affecting creditors' rights generally and general principles of
      equity.

     

                            
      (e)  The
      Consolidated balance sheet of the Company and its Subsidiaries as at
      December 31, 2005, and the related Consolidated statements of income and
      cash flows of the Company and its Subsidiaries for the fiscal year then ended,
      accompanied by an opinion of KPMG LLP, independent public accountants, copies
      of
      which have been furnished to each Lender, fairly present the Consolidated
      financial condition of the Company and its Subsidiaries as at such date and
      the
      Consolidated results of the operations of the Company and its Subsidiaries
      for
      the period ended on such date, all in accordance with accounting principles
      generally accepted in the United States consistently applied. Since
      December 31, 2005, there has been no Material Adverse Change.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        38

      

    

     

     

                            
      (f)  (i)
      There
      is no pending or, to the Company's knowledge, threatened action, suit,
      investigation, litigation or proceeding, including, without limitation, any
      Environmental Action, affecting the Company or any of its Subsidiaries before
      any court, governmental agency or arbitrator that (A) would be reasonably
      likely to have a Material Adverse Effect (other than the Disclosed Litigation)
      or (B) purports to affect the legality, validity or enforceability of this
      Agreement or any Note or the consummation of the transactions contemplated
      hereby, and (ii) there has been no adverse change in the status, or financial
      effect on the Company and its Subsidiaries taken as a whole, of the Disclosed
      Litigation from that described on Schedule 3.01(b) hereto.

     

                            
      (g)  No
      proceeds of any Advance will be applied in any manner that will violate or
      cause
      any Lender to violate Regulation U or Regulation G issued by the Board of
      Governors of the Federal Reserve System.

     

                            
      (h)  The
      Company is not, and immediately after the application by the Company of the
      proceeds of each Advance will not be, an "investment company", or a company
      "controlled" by an "investment company", as such terms are defined in the
      Investment Company Act of 1940, as amended.

     

                            
      (i)  The
      Company and each of its Subsidiaries are in compliance with all applicable
      laws,
      rules, regulations and orders, including, without limitation, ERISA and
      Environmental Laws and Environmental Permits, except where the failure to so
      comply would not be reasonably likely to have a Material Adverse
      Effect.

     

                            
      (j)  To
      the
      Company's knowledge, (i) all past non-compliance with any Environmental Laws
      and
      Environmental Permits has been resolved without ongoing obligations or costs
      except where the failure to so comply would not be reasonably likely to have
      a
      Material Adverse Effect and (ii) no circumstances exist that would be reasonably
      likely to (A) form the basis of an Environmental Action against the Company
      or any of its Subsidiaries or any of their properties that would be reasonably
      likely to have a Material Adverse Effect or (B) cause any such property to
      be subject to any restrictions on ownership, occupancy, use or transferability
      under any Environmental Law that would be reasonably likely to have a Material
      Adverse Effect.

     

                            
      (k)  No
      ERISA
      Event that would be reasonably likely to have a Material Adverse Effect has
      occurred or is reasonably expected to occur with respect to any
      Plan.

     

                            
      (l)  Schedule
      B (Actuarial Information) to the most recent annual report (Form 5500 Series)
      for each Plan whose "funded current liability percentage" is less than 90%
      and
      whose "unfunded current liability" exceeds $5,000,000 (as such terms are defined
      in Section 302(d)(8) of ERISA), copies of which have been filed with the
      Internal Revenue Service and furnished to the Lenders, is complete and accurate
      and fairly presents in all material respects the funding status of such
      Plan.

     

                           
       (m)  Neither
      the Company nor any ERISA Affiliate has outstanding liability with respect
      to,
      or is reasonably expected to incur any Withdrawal Liability to, any
      Multiemployer Plan that would be reasonably likely to have a Material Adverse
      Effect.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        39

      

    

     

     

                            
      (n)  Neither
      the Company nor any ERISA Affiliate has been notified by the sponsor of a
      Multiemployer Plan that such Multiemployer Plan is in reorganization or has
      been
      terminated, within the meaning of Title IV of ERISA, and no such
      Multiemployer Plan is reasonably expected to be in reorganization or to be
      terminated, within the meaning of Title IV of ERISA, where such
      reorganization or termination would be reasonably likely to have a Material
      Adverse Effect.

     

                            
      (o)  Except
      as
      set forth in the financial statements referred to in Section 4.01(e) and in
      Section 5.01(h), the Company and its Subsidiaries taken as a whole have no
      material liability with respect to "expected post retirement benefit
      obligations" within the meaning of Statement of Financial Accounting Standards
      No. 106.

     

    ARTICLE
      V
  

     

    COVENANTS
      OF THE COMPANY

     

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

     

             
                   
(a)  Compliance
      with Laws, Obligations, Etc.
      Comply,
      and cause each of its Subsidiaries to comply, in all material respects, with
      all
      applicable laws, rules, regulations and orders, such compliance to include,
      without limitation, compliance with ERISA and Environmental Laws as provided
      in
      Section 5.01(i), except where the failure to so comply would not be
      reasonably likely to have a Material Adverse Effect.

     

                           
      (b)  Payment
      of Taxes, Etc.
      Pay and
      discharge, and cause each of its Subsidiaries to pay and discharge, before
      the
      same shall become delinquent if the failure to so pay and discharge would
      be reasonably likely to have a Material Adverse Effect, (i) all taxes,
      assessments and governmental charges or levies imposed upon it or upon its
      property and (ii) all lawful claims that, if unpaid, will by law become a
      Lien upon its property; provided,
      however,
      that
      neither the Company nor any of its Subsidiaries shall be required to pay or
      discharge any such tax, assessment, charge or claim that is being contested
      in
      good faith and by proper proceedings and as to which appropriate reserves are
      being maintained.

     

                           
      (c)  Maintenance
      of Insurance.
      Maintain, and cause each of its Material Subsidiaries to maintain, insurance
      with responsible and reputable insurance companies or associations (or continue
      to maintain self-insurance) in such amounts and covering such risks as is
      usually carried by companies engaged in similar businesses and owning similar
      properties in the same general areas in which the Company or such Subsidiary
      operates.

     

                            (d)  Preservation
      of Corporate Existence, Etc.
      Preserve and maintain, and cause each of its Subsidiaries to preserve and
      maintain, its corporate existence, rights (charter and statutory) and
      franchises; provided,
      however,
      that
      the Company and its Subsidiaries may consummate any merger or consolidation
      permitted under Section 5.02(b) and provided further
      that
      neither the Company nor any of its Subsidiaries shall be required
      to

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        40

      

    

     

     

    preserve
      any right or franchise if the Board of Directors of the Company or such
      Subsidiary shall determine that the preservation thereof is no longer desirable
      in the conduct of the business of the Company or such Subsidiary, as the case
      may be, and that the loss thereof would not be reasonably likely to have a
      Material Adverse Effect.

     

                               
       (e)  Authorizations.
      Obtain,
      and cause each Designated Subsidiary with a principal place of business outside
      the United States to obtain, at any time and from time to time all
      authorizations, licenses, consents or approvals (including exchange control
      approvals) as shall now or hereafter be necessary or desirable under applicable
      law or regulations in connection with such Designated Subsidiary's making and
      performance of this Agreement and, upon the request of any Lender, promptly
      furnish to such Lender copies thereof.

     

                               
      (f)  Keeping
      of Books.
      Keep,
      and cause each of its Material Subsidiaries with a principal place of business
      in the United States to keep, proper books of record and account, in which
      full
      and correct entries in all material respects shall be made of all financial
      transactions and the assets and business of the Company and each such Subsidiary
      in accordance with generally accepted accounting principles in effect from
      time
      to time.

     

                               
      (g)  Maintenance
      of Properties, Etc.
      Maintain and preserve, and cause each of its Subsidiaries to maintain and
      preserve, all of its properties that are used in the conduct of its business
      in
      good working order and condition, ordinary wear and tear excepted, except where
      the failure to do so would not be reasonably likely to have a Material Adverse
      Effect.

     

    (h)  Reporting
      Requirements.
      Furnish
      to the Lenders:

     

    (i)  as
      soon
      as available and in any event within 45 days after the end of each of the first
      three quarters of each fiscal year of the Company, Consolidated condensed
      balance sheet of the Company and its Subsidiaries as of the end of such quarter
      and Consolidated statements of income and Consolidated condensed statements
      of
      cash flows of the Company and its Subsidiaries for the period commencing at
      the
      end of the previous fiscal year and ending with the end of such quarter, duly
      certified (subject to audit adjustments) by the chief financial officer of
      the
      Company as having been prepared in accordance with applicable rules and
      regulations of the Securities and Exchange Commission and certificates of the
      chief financial officer of the Company as to compliance with the terms of this
      Agreement;

     

                                     
         (ii)  as
      soon
      as available and in any event within 90 days after the end of each fiscal year
      of the Company, a copy of the annual report for  such year for the Company
      and its Subsidiaries, containing Consolidated balance sheet of the Company
      and
      its Subsidiaries as of the end of such fiscal year and Consolidated statements
      of income and cash flows of the Company and its Subsidiaries for such fiscal
      year, in each case accompanied by an opinion of KPMG LLP or other nationally
      recognized independent public accountants;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        41

      

    

     

     

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

     

                                   
       (iv)  as
      soon
      as possible and in any event within three days after the occurrence of a Change
      of Control, notice of such Change of Control setting forth the details of such
      Change of Control;

     

                       
                  
   (v)  promptly
      after the sending or filing thereof, copies of all reports that the Company
      sends to any of its public securityholders, and copies of all reports and
      registration statements that the Company or any Subsidiary files with the
      Securities and Exchange Commission or any national securities
      exchange;

     

    (vi)  (a)
      promptly and in any event within 20 days after the Company or any ERISA
      Affiliate has actual knowledge that an event that is an ERISA Event that has
      resulted or that would be reasonably likely to result in a liability of the
      Company or any ERISA Affiliate in an amount in excess of $25,000,000 has
      occurred, a statement of the chief financial officer or other authorized officer
      of the Company describing such ERISA Event and the action, if any, that the
      Company or such ERISA Affiliate has taken and proposes to take with respect
      thereto and (b) on the date any records, documents or other information must
      be
      furnished to the PBGC with respect to any Plan pursuant to Section 4010 of
      ERISA, a copy of such records, documents and information;

     

    (vii)  promptly
      and in any event within three Business Days after receipt thereof by the Company
      or any ERISA Affiliate, copies of each notice from the PBGC stating its
      intention to terminate any Plan or to have a trustee appointed to administer
      any
      Plan, where such notice, termination or appointment has resulted or would be
      reasonably likely to result in a liability of the Company or any ERISA Affiliate
      in an amount in excess of $25,000,000;

     

    (viii)  promptly
      and in any event within 30 days after filing thereof with the Internal Revenue
      Services, copies of each Schedule B (Actuarial Information) to the annual report
      (Form 5500 Series) with respect to each Plan whose "funded current liability
      percentage" is less than 90% and whose "unfunded current liability" exceeds
      $5,000,000 (as such terms are defined in Section 302(d)(8) of
      ERISA);

     

                      
      (ix)  promptly
      and in any event within five Business Days after receipt thereof by the Company
      or any ERISA Affiliate from the sponsor of a Multiemployer Plan, copies of
      each
      notice concerning (A) the imposition of Withdrawal Liability by any such
      Multiemployer Plan, (B) the reorganization or termination, within the
      meaning of Title IV of ERISA, of any such Multiemployer Plan or
      (C) the amount of liability incurred, or that may be incurred, by the
      Company or any ERISA Affiliate in connection with any event described
      in

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        42

      

    

     

     

      
      clause (A) or (B), where such imposition, reorganization or termination has
      resulted or would be reasonably likely to result in a liability of
      the Company or any ERISA Affiliate in an amount exceeding
      $25,000,000;

     

                             
         (x)  promptly
      after the commencement thereof, notice of all actions and proceedings before
      any
      court, governmental agency or  arbitrator affecting the Company or any of
      its Subsidiaries of the type described in Section 4.01(f); and

     

                                          
      (xi)  such
      other information respecting the Company or any of its Subsidiaries as any
      Lender through the Agent may from time to time reasonably request.

     

                  
                (i)  Compliance
      with Environmental Laws.
      Comply,
      and cause each of its Subsidiaries and all lessees and other Persons operating
      or occupying its properties, to comply with all applicable Environmental Laws
      and Environmental Permits except where the failure to so comply would not be
      reasonably likely to have a Material Adverse Effect.

     

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

     

                            
      (a)  Liens,
      Etc.
      Create
      or suffer to exist, or permit any of its Subsidiaries to create or suffer to
      exist, any Lien on or with respect to any of   its properties, whether
      now owned or hereafter acquired, or assign, or permit any of its Subsidiaries
      to
      assign, any right to receive income, other than:

     

                                                    (i)  Permitted
      Liens,

     

                                                    (ii)  purchase
      money Liens upon or in any real property or equipment acquired or held by the
      Company or any Subsidiary of the Company in the ordinary course of business
      to
      secure the purchase price of such property or equipment or to secure Debt
      incurred solely for the purpose of financing the acquisition of such property
      or
      equipment, or Liens existing on such property or equipment at the time of its
      acquisition (other than any such Liens created in contemplation of such
      acquisition that were not incurred to finance the acquisition of such property)
      or extensions, renewals or replacements of any of the foregoing for the same
      or
      a lesser amount, provided,
      however,
      that no
      such Lien shall extend to or cover any properties of any character other than
      the real property or equipment being acquired, and no such extension, renewal
      or
      replacement shall extend to or cover any properties not theretofore subject
      to
      the Lien being extended, renewed or replaced,

     

                                                    (iii)  any
      assignment of any right to receive income existing on the Effective Date and
      any
      Liens existing on the Effective Date,

     

                                                    (iv)  Liens
      on
      property of a Person existing at the time such Person is merged into or
      consolidated with the Company or any Subsidiary of the Company or becomes a
      Subsidiary of the Company; provided
      that
      such Liens do not extend

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        43

      

    

     

     

               
                    
 to any assets other than those of the Person so merged into or
      consolidated with the Company or such Subsidiary or acquired by the
      Company   or  such Subsidiary,

     

                                                    (v)  other
      Liens or any other assignment of any right to receive income (in addition to
      the
      Liens and assignments permitted under   clauses (i), (ii), (iii), (iv)
      or (vi)) securing Debt in an aggregate principal amount not to exceed
      $450,000,000, and

     

                                                   
      (vi)  the
      replacement, extension or renewal of any Lien or any assignment of any right
      to
      receive income permitted by clause (iii) or (iv) above upon or in the same
      property theretofore subject thereto or the replacement, extension or renewal
      (without increase in the amount or change in any direct or contingent obligor)
      of the Debt secured thereby.

     

                        (b)  Mergers,
      Etc.
      Merge
      or consolidate with or into, or convey, transfer, lease or otherwise dispose
      of
      (whether in one transaction or in a series of transactions) all or substantially
      all of its assets (whether now owned or hereafter acquired) to, any Person,
      or
      permit any of its Subsidiaries to do so, except that (i) any Subsidiary of
      the
      Borrower may merge or consolidate with or into, or dispose of assets to, any
      other Subsidiary of the Company, (ii) any Subsidiary of the Company may merge
      into or dispose of assets to the Company and (iii) the Company or any of its
      Subsidiaries may merge with any other Person so long as the Company or such
      Subsidiary is the surviving entity, provided,
      in each
      case, that no Default shall have occurred and be continuing at the time of
      such
      proposed transaction or would result therefrom.

     

                        (c)  Change
      in Nature of Business.
      Make,
      or permit any of its Subsidiaries to make, any material change in the nature
      of
      its business as carried on at the date hereof.

     

                        SECTION
      5.03.   Financial
      Covenant.
      So long
      as any Advance shall remain unpaid or any Lender shall have any Commitment
      hereunder, the Company shall maintain, as of the end of each fiscal quarter,
      a
      ratio of (a) Pre-Tax Income from Continuing Operations for the four fiscal
      quarters then ended to (b) Consolidated Interest Expense for such four
      fiscal quarters of not less than 2.0 to 1.0.

     

    ARTICLE
      VI   

     

    EVENTS
      OF
      DEFAULT

     

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

     

                         
      (a)  Any
      Borrower shall fail to pay any principal of any Advance within one Business
      Day
      after the same becomes due and payable; or any Borrower shall fail to pay any
      interest on any Advance or make any other payment of fees or other amounts
      payable under this Agreement or any Note within three Business Days after the
      same becomes due and payable; or

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        44

      

    

                                  

                          (b)  Any
      representation or warranty made by any Company herein or, if such Borrower
      is a
      Designated Subsidiary, in such Borrower's Designation Letter, or by any Borrower
      in connection with this Agreement shall prove to have been incorrect in any
      material respect when made; or

     

                          (c)  (i) The
      Company shall fail to perform or observe any term, covenant or agreement
      contained in Section 5.01(d) or (h)(iii), (iv) or (vi)-(ix) or 5.02, or
      (ii) the Company or any other Borrower shall fail to perform or observe any
      term, covenant or agreement contained in Section 5.01(h)(i), (ii), (v), (x)
      or
      (xi) if such failure shall remain unremedied for 10 days after written notice
      thereof shall have been given to the relevant Borrower by the Agent or any
      Lender, or (iii) the Company or any other Borrower shall fail to perform or
      observe any other term, covenant or agreement contained in this Agreement on
      its
      part to be performed or observed if such failure shall remain unremedied for
      30
      days after written notice thereof shall have been given to the relevant Borrower
      by the Agent or any Lender; or

     

                          (d)  Any
      Borrower or any of its Subsidiaries shall fail to pay any principal of or
      premium or interest on any Debt that is outstanding in a principal or notional
      amount of at least $125,000,000 in the aggregate (but excluding Debt outstanding
      hereunder) of such Borrower or such Subsidiary (as the case may be), when the
      same becomes due and payable (whether by scheduled maturity, required
      prepayment, acceleration, demand or otherwise), and such failure shall continue
      after the applicable grace period, if any, specified in the agreement or
      instrument relating to such Debt; or any other event shall occur or condition
      shall exist under any agreement or instrument relating to any such Debt and
      shall continue after the applicable grace period, if any, specified in such
      agreement or instrument, if the effect of such event or condition is to
      accelerate the maturity of such Debt; or any such Debt shall be declared to
      be
      due and payable, or required to be prepaid or redeemed (other than by a
      regularly scheduled required prepayment or redemption), purchased or defeased,
      or an offer to prepay, redeem, purchase or defease such Debt shall be required
      to be made, in each case prior to the stated maturity thereof, unless the event
      giving rise to such prepayment, redemption, purchase or defeasance is not
      related directly to any action taken by, or the condition (financial or
      otherwise) or operations of, the Company, any of its Subsidiaries, or any of
      their respective properties; or

     

                           (e)  Any
      Borrower or any of its Material Subsidiaries shall generally not pay its debts
      as such debts become due, or shall admit in writing its inability to pay its
      debts generally, or shall make a general assignment for the benefit of
      creditors; or any proceeding shall be instituted by or against any Borrower
      or
      any of its Material Subsidiaries seeking to adjudicate it a bankrupt or
      insolvent, or seeking liquidation, winding up, reorganization, arrangement,
      adjustment, protection, relief, or composition of it or its debts under any
      law
      relating to bankruptcy, insolvency or reorganization or relief of debtors,
      or
      seeking the entry of an order for relief or the appointment of a receiver,
      trustee, custodian or other similar official for it or for any substantial
      part
      of its property and, in the case of any such proceeding instituted against
      it
      (but not instituted by it), either such proceeding shall remain undismissed
      or
      unstayed for a period of 60 days, or any of the actions sought in such
      proceeding (including, without limitation, the entry of 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        45

      

    

     

     

     

    an
      order
      for relief against, or the appointment of a receiver, trustee, custodian or
      other similar official for, it or for any substantial part of its property)
      shall occur; or any Borrower or any of its Material Subsidiaries shall take
      any
      corporate action to authorize any of the actions set forth above in this
      subsection (e); or

     

                           (f)  Any
      judgment or order for the payment of money in excess of $125,000,000 shall
      be
      rendered against any Borrower or any of its Subsidiaries and there shall be
      any
      period of 30 consecutive days during which a stay of enforcement of such
      judgment or order, by reason of a pending appeal or otherwise, shall not be
      in
      effect; or

     

                           (g)  The
      Company or any ERISA Affiliate shall incur, or, in the reasonable opinion of
      the
      Majority Lenders, shall be reasonably likely to incur liability in excess of
      $125,000,000 in the aggregate as a result of one or more of the following:
      (i) the occurrence of any ERISA Event; (ii) the partial or complete
      withdrawal of the Company or any of its ERISA Affiliates from a Multiemployer
      Plan; or (iii) the reorganization or termination of a Multiemployer Plan;
      or

     

                            (h)  Any
      ERISA
      Event shall have occurred with respect to a Plan and the sum (determined as
      of
      the date of occurrence of such ERISA Event) of the Insufficiency of such Plan
      and the Insufficiency of any and all other Plans with respect to which an ERISA
      Event shall have occurred and then exist (or the liability of the Company and
      the ERISA Affiliates related to such ERISA Event) exceeds $125,000,000;
      or

     

                             (i)  The
      Company or any ERISA Affiliate shall have been notified by the sponsor of a
      Multiemployer Plan that it has incurred Withdrawal  liability to such
      Multiemployer Plan in an amount that, when aggregated with all other amounts
      required to be paid to Multiemployer Plans by the Company and the ERISA
      Affiliates as Withdrawal Liability (determined as of the date of such
      notification), exceeds $125,000,000; or

     

                             (j)  The
      Company or any ERISA Affiliate shall have been notified by the sponsor of a
      Multiemployer Plan that such Multiemployer Plan is in reorganization or is
      being
      terminated, within the meaning of Title IV of ERISA, and as a result of
      such reorganization or termination the aggregate annual contributions of the
      Company and the ERISA Affiliates to all Multiemployer Plans that are then in
      reorganization or being terminated have been or will be increased over the
      amounts contributed to such Multiemployer Plans for the plan years of such
      Multiemployer Plans immediately preceding the plan year in which such
      reorganization or termination occurs by an amount exceeding $125,000,000 in
      the
      aggregate;

     

    then,
      and
      in any such event, the Agent (i) shall at the request, or may with the
      consent, of the Majority Lenders, by notice to the Company and each other
      Borrower, declare the obligation of each Lender to make Advances to be
      terminated, whereupon the same shall forthwith terminate, and (ii) shall at
      the request, or may with the consent, of the Majority Lenders, by notice to
      the
      Company and each other Borrower, declare the Advances, all interest thereon
      and
      all other amounts payable under this Agreement to be forthwith due and payable,
      whereupon the Advances, all such interest and all such amounts shall become
      and
      be forthwith due and payable, without presentment, demand, protest or further
      notice of any kind, all of which are hereby 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        46

      

    

     

     

     

     

    expressly
      waived by the Borrowers; provided,
      however,
      that in
      the event of an actual or deemed entry of an order for relief with respect
      to
      any Borrower under the Federal Bankruptcy Code, (A) the obligation of each
      Lender to make Advances to such Borrower (or, if such event has occurred in
      respect of the Company, to make Advances to any Borrower) shall automatically
      be
      terminated and (B) the Advances, all such interest and all such amounts
      owing by such Borrower (or, if such event has occurred in respect of the
      Company, owing by all of the Borrowers) shall automatically become and be due
      and payable, without presentment, demand, protest or any notice of any kind,
      all
      of which are hereby expressly waived by the Borrowers.

     

    ARTICLE
      VII   

     

    GUARANTY

     

                      
      SECTION 7.01.   Guaranty.
      For
      valuable consideration, receipt whereof is hereby acknowledged, and to induce
      each Lender to make Advances to the Designated Subsidiaries and to induce the
      Agent to act hereunder, the Company hereby unconditionally and irrevocably
      guarantees to each Lender and the Agent the punctual payment when due, whether
      at stated maturity, by acceleration or otherwise, of all obligations of the
      Designated Subsidiaries now or hereafter existing under this Agreement or the
      Notes, whether for principal, interest, fees, indemnities, expenses or otherwise
      (such obligations being the "Guaranteed
      Obligations"),
      and
      agrees to pay any and all reasonable and documented expenses (including
      reasonable counsel fees and expenses) incurred by the Agent or any Lender in
      enforcing any rights under this Guaranty. Without limiting the generality of
      the
      foregoing, the Company's liability shall extend to all amounts that constitute
      part of the Guaranteed Obligations and that would be owed by any Designated
      Subsidiary to the Agent or any Lender under this Agreement and the Notes but
      for
      the fact that such Guaranteed Obligations are unenforceable or not allowable
      due
      to the existence of a bankruptcy, reorganization or similar proceeding involving
      such Designated Subsidiary.

     

                     
      SECTION 7.02.   Guaranty
      Absolute.
      The
      Company guarantees that the Guaranteed Obligations will be paid strictly in
      accordance with the terms of this Agreement regardless of any law, regulation
      or
      order now or hereafter in effect in any jurisdiction affecting any of such
      terms
      or the rights of the Agent or any Lender with respect thereto. The obligations
      of the Company under this Guaranty are independent of the Guaranteed Obligations
      or any other obligations of any Designated Subsidiary under this Agreement
      and
      the Notes, and a separate action or actions may be brought and prosecuted
      against the Company to enforce the obligations of the Company under this
      Guaranty, irrespective of whether any action is brought against any Borrower
      or
      whether any Borrower is joined in any such action or actions. The liability
      of
      the Company under this Guaranty shall be irrevocable, absolute and unconditional
      irrespective of, and the Company hereby irrevocably waives any defenses it
      may
      now or hereafter have in any way relating to, any or all of the
      following:

     

                      
      (a)  any
      lack
      of validity or enforceability of this Agreement or the Notes, or any other
      agreement or instrument relating thereto;

     

                   
         (b)  any
      change in the time, manner or place of payment of, or in any other term of,
      all
      or any of the Guaranteed Obligations or any other obligations of any Designated
      Subsidiary under this Agreement or the Notes, or any other amendment or waiver
      of or 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        47

      

    

     

     

    any
      consent to departure from this Agreement or any Note, including, without
      limitation, any increase in the Guaranteed Obligations resulting from the
      extension of additional credit to any Designated Subsidiary or any of its
      Subsidiaries or otherwise;

     

                       (c)  any
      taking, release or amendment or waiver of or consent to departure from any
      other
      guaranty, for all or any of the Guaranteed Obligations;

     

                       (d)  any
      change, restructuring or termination of the corporate structure or existence
      of
      any Designated Subsidiary or any of its Subsidiaries;

     

                       (e)  any
      failure of the Agent or any Lender to disclose to the Company or any Designated
      Subsidiary any information relating to the financial condition, operations,
      properties or prospects of any Designated Subsidiary now or in the future known
      to the Agent or such Lender, as the case may be (the Company waiving any duty
      on
      the part of the Agent or the Lenders to disclose such information);
      or

     

                       (f)  any
      other
      circumstance (including, without limitation, any statute of limitations) or
      any
      existence of or reliance on any representation by the Agent or any Lender that
      might otherwise constitute a defense available to, or a discharge of, any
      Designated Subsidiary or the Company or any other guarantor or
      surety.

     

    This
      Guaranty shall continue to be effective or be reinstated, as the case may be,
      if
      at any time any payment of any of the Guaranteed Obligations is rescinded or
      must otherwise be returned by the Agent or any Lender upon the insolvency,
      bankruptcy or reorganization of any Designated Subsidiary or otherwise, all
      as
      though such payment had not been made.

     

                        
      SECTION 7.03.   Waivers
      and Acknowledgments.
      (a)
      The
      Company hereby waives promptness, diligence, notice of acceptance and any other
      notice with respect to any of the Guaranteed Obligations and this Guaranty
      and
      any requirement that the Agent or any Lender exhaust any right or take any
      action against any Designated Subsidiary or any other Person, and all other
      notices and demands whatsoever.

     

                          
      (b)  The
      Company hereby waives any right to revoke this Guaranty, and acknowledges that
      this Guaranty is continuing in nature and applies to all Guaranteed Obligations,
      whether existing now or in the future.

     

                           
      (c)  The
      Company acknowledges that it will receive substantial direct and indirect
      benefits from the financing arrangements contemplated by this Agreement and
      the
      Notes and that the waivers set forth in this Section 7.03 are knowingly made
      in
      contemplation of such benefits.

     

                         SECTION
      7.04.   Subrogation.
      The
      Company will not exercise any rights that it may now or hereafter acquire
      against any Designated Subsidiary or any other insider guarantor that arise
      from
      the existence, payment, performance or enforcement of the Company's obligations
      under this Guaranty or any provision of this Agreement or the Notes, including,
      without limitation, any right of subrogation, reimbursement, exoneration,
      contribution or indemnification and any right to participate in any claim or
      remedy of the Agent or any Lender against such Designated Subsidiary or any
      other insider guarantor or any collateral, whether or not such claim, remedy
      or
      right arises in equity or under contract, statute or common law, 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        48

      

    

     

     

     

    including,
      without limitation, the right to take or receive from such Designated Subsidiary
      or any other insider guarantor, directly or indirectly, in cash or other
      property or by set-off or in any other manner, payment or security on account
      of
      such claim, remedy or right, unless and until all of the Guaranteed Obligations
      and all other amounts payable under this Guaranty shall have been paid in full
      in cash and the Commitments shall have expired or terminated. If any amount
      shall be paid to the Company in violation of the preceding sentence at any
      time
      prior to the later of the payment in full in cash of the Guaranteed Obligations
      and all other amounts payable under this Guaranty and the Termination Date,
      such
      amount shall be held in trust for the benefit of the Agent and Lenders and
      shall
      forthwith be paid to the Agent to be credited and applied to the Guaranteed
      Obligations and all other amounts payable under this Guaranty, whether matured
      or unmatured, in accordance with the terms of this Agreement and any Notes,
      or
      to be held as collateral for any Guaranteed Obligations or other amounts payable
      under this Guaranty thereafter arising. If (i) the Company shall make
      payment to the Agent or any Lender of all or any part of the Guaranteed
      Obligations, (ii) all of the Guaranteed Obligations and all other amounts
      payable under this Guaranty shall be paid in full in cash and (iii) the
      Termination Date shall have occurred, the Agent and the Lenders will, at the
      Company's request and expense, execute and deliver to the Company appropriate
      documents, without recourse and without representation or warranty, necessary
      to
      evidence the transfer by subrogation to the Company of an interest in the
      Guaranteed Obligations resulting from such payment by the Company.

     

                        
      SECTION 7.05.   Continuing
      Guaranty; Assignments Under the Credit Agreement.
      This
      Guaranty is a continuing guaranty and shall (a) remain in full force and
      effect until the later of the payment in full in cash of the Guaranteed
      Obligations and all other amounts payable under this Agreement and the
      Termination Date, (b) be binding upon the Company, its successors and
      assigns and (c) inure to the benefit of and be enforceable by the Agent and
      the Lenders and their respective successors, transferees and assigns. Without
      limiting the generality of the foregoing clause (c), any Lender may assign
      or otherwise transfer all or any portion of its rights and obligations under
      this Agreement (including, without limitation, all or any portion of its
      Commitment, the Advances owing to it and any Note or Notes held by it) to any
      other Person, and such other Person shall thereupon become vested with all
      the
      benefits in respect thereof granted to such Lender herein or otherwise, in
      each
      case as and to the extent provided in Section 9.07 of this
      Agreement.

     

                       
      SECTION 7.06.   No
      Stay.
      The
      Company agrees that, as between (a) the Company and (b) the Lenders and the
      Agent, the Guaranteed Obligations of any Designated Subsidiary guaranteed by
      the
      Company hereunder may be declared to be forthwith due and payable as provided
      in
      Article VI hereof for purposes of this Guaranty by declaration to the Company
      as
      guarantor notwithstanding any stay, injunction or other prohibition preventing
      such declaration as against such Designated Subsidiary and that, in the event
      of
      such declaration to the Company as guarantor, such Guaranteed Obligations
      (whether or not due and payable by such Designated Subsidiary), shall forthwith
      become due and payable by the Company for purposes of this
      Guaranty.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        49

      

    

     

    ARTICLE
      VIII   

     

    THE
      AGENT

     

    SECTION
      8.01.   Authorization
      and Action.
      Each
      Lender hereby appoints and authorizes the Agent to take such action as agent
      on
      its behalf and to exercise such powers and discretion under this Agreement
      as
      are delegated to the Agent by the terms hereof, together with such powers and
      discretion as are reasonably incidental thereto. As to any matters not expressly
      provided for by this Agreement (including, without limitation, enforcement
      or
      collection of the Advances), the Agent shall not be required to exercise any
      discretion or take any action, but shall be required to act or to refrain from
      acting (and shall be fully protected in so acting or refraining from acting)
      upon the instructions of the Majority Lenders, and such instructions shall
      be
      binding upon all Lenders and all holders of Advances; provided,
      however,
      that
      the Agent shall not be required to take any action that exposes the Agent to
      personal liability or that is contrary to this Agreement or applicable law.
      The
      Agent agrees to give to each Lender prompt notice of each notice given to it
      by
      any Borrower pursuant to the terms of this Agreement.

     

    SECTION
      8.02.   Agent's
      Reliance, Etc.
      Neither
      the Agent nor any of its directors, officers, agents or employees shall be
      liable for any action taken or omitted to be taken by it or them under or in
      connection with this Agreement, except for its or their own gross negligence
      or
      willful misconduct. Without limitation of the generality of the foregoing,
      the
      Agent: (a) may treat the Lender that made any Advance as the holder of the
      Debt resulting therefrom until the Agent receives and accepts an Assignment
      and
      Acceptance entered into by such Lender, as assignor, and an Eligible Assignee,
      as assignee, as provided in Section 9.07; (b) may consult with legal
      counsel (including counsel for any Borrower), independent public accountants
      and
      other experts selected by it and shall not be liable for any action taken or
      omitted to be taken in good faith by it in accordance with the advice of such
      counsel, accountants or experts; (c) makes no warranty or representation to
      any Lender and shall not be responsible to any Lender for any statements,
      warranties or representations (whether written or oral) made in or in connection
      with this Agreement; (d) shall not have any duty to ascertain or to inquire
      as to the performance or observance of any of the terms, covenants or conditions
      of this Agreement on the part of any Borrower or to inspect the property
      (including the books and records) of any Borrower; (e) shall not be
      responsible to any Lender for the due execution, legality, validity,
      enforceability, genuineness, sufficiency or value of this Agreement or any
      other
      instrument or document furnished pursuant hereto; and (f) shall incur no
      liability under or in respect of this Agreement by acting upon any notice,
      consent, certificate or other instrument or writing (which may be by telecopier,
      telegram or telex) believed by it to be genuine and signed or sent by the proper
      party or parties.

     

    SECTION
      8.03.   Citibank
      and Affiliates.
      With
      respect to its Commitment, the Advances made by it and the Note issued to it,
      Citibank shall have the same rights and powers under this Agreement as any
      other
      Lender and may exercise the same as though it were not the Agent; and the term
      "Lender" or "Lenders" shall, unless otherwise expressly indicated, include
      Citibank in its individual capacity. Citibank and its Affiliates may accept
      deposits from, lend money to, act as trustee under indentures of, accept
      investment banking engagements from and generally engage in any kind of business
      with, the Company, any of its Subsidiaries and any

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        50

      

    

     

    Person
      who may do business with or own securities of the Company or any such
      Subsidiary, all as if Citibank were not the Agent and without any duty to
      account therefor to the Lenders.

     

    SECTION
      8.04.   Lender
      Credit Decision.
      Each
      Lender acknowledges that it has, independently and without reliance upon the
      Agent or any other Lender and based on the financial statements referred to
      in
      Section 4.01 and such other documents and information as it has deemed
      appropriate, made its own credit analysis and decision to enter into this
      Agreement. Each Lender also acknowledges that it will, independently and without
      reliance upon the Agent or any other Lender and based on such documents and
      information as it shall deem appropriate at the time, continue to make its
      own
      credit decisions in taking or not taking action under this
      Agreement.

     

    SECTION
      8.05.   Indemnification.
      The
      Lenders agree to indemnify the Agent (to the extent not reimbursed by a
      Borrower), ratably according to the respective principal amounts of the
      Revolving Credit Notes then held by each of them (or if no Revolving Credit
      Notes are at the time outstanding or if any Revolving Credit Notes are held
      by
      Persons that are not Lenders, ratably according to the respective amounts of
      their Commitments), from and against any and all liabilities, obligations,
      losses, damages, penalties, actions, judgments, suits, costs, expenses or
      disbursements of any kind or nature whatsoever that may be imposed on, incurred
      by, or asserted against the Agent in any way relating to or arising out of
      this
      Agreement or any action taken or omitted by the Agent under this Agreement,
      provided
      that no
      Lender shall be liable for any portion of such liabilities, obligations, losses,
      damages, penalties, actions, judgments, suits, costs, expenses or disbursements
      resulting from the Agent's gross negligence or willful misconduct. Without
      limitation of the foregoing, each Lender agrees to reimburse the Agent promptly
      upon demand for its ratable share of any out-of-pocket expenses (including
      counsel fees) incurred by the Agent in connection with the preparation,
      execution, delivery, administration, modification, amendment or enforcement
      (whether through negotiations, legal proceedings or otherwise) of, or legal
      advice in respect of rights or responsibilities under, this Agreement, to the
      extent that the Agent is not reimbursed for such expenses by a
      Borrower.

     

    SECTION
      8.06.   Successor
      Agent.
      The
      Agent may resign at any time by giving written notice thereof to the Lenders
      and
      each Borrower and may be removed at any time with or without cause by the
      Majority Lenders and such resignation or removal shall be effective upon the
      appointment of a successor Agent. Upon any such resignation or removal, the
      Majority Lenders shall have the right to appoint a successor Agent, subject
      to
      the Company's approval (which shall not be unreasonably withheld). If no
      successor Agent shall have been so appointed by the Majority Lenders, and shall
      have accepted such appointment, within 30 days after the retiring Agent's giving
      of notice of resignation or the Majority Lenders' removal of the retiring Agent,
      then the retiring Agent may, on behalf of the Lenders, appoint a successor
      Agent, which shall be a commercial bank organized under the laws of the United
      States of America or of any State thereof and having a combined capital and
      surplus of at least $250,000,000, subject to the Company's approval (which
      shall
      not be unreasonably withheld). Upon the acceptance of any appointment as Agent
      hereunder by a successor Agent, such successor Agent shall thereupon succeed
      to
      and become vested with all the rights, powers, discretion, privileges and duties
      of the retiring Agent, and the retiring Agent shall be discharged from its
      duties and obligations under this Agreement. After any retiring Agent's
      resignation or removal hereunder as Agent, the 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        51

      

    

     

     

    provisions
      of this Article VIII shall inure to its benefit as to any actions taken or
      omitted to be taken by it while it was Agent under this Agreement.

     

    ARTICLE
      IX   

     

    MISCELLANEOUS

     

    SECTION
      9.01.   Amendments,
      Etc.
      No
      amendment or waiver of any provision of this Agreement or the Revolving Credit
      Notes, nor consent to any departure by any Borrower therefrom, shall in any
      event be effective unless the same shall be in writing and signed by the
      Majority Lenders, and then such waiver or consent shall be effective only in
      the
      specific instance and for the specific purpose for which given; provided,
      however,
      that no
      amendment, waiver or consent shall, unless in writing and signed by all the
      Lenders, do any of the following: (a) increase the Commitment of any Lender
      (other than as provided for in Section 2.05(c)) or subject any Lender to any
      additional monetary obligations, (b) reduce the principal of, or interest
      on, the Revolving Credit Notes or any fees or other amounts payable hereunder,
      (c) postpone any date fixed for any payment of principal of, or interest
      on, the Revolving Credit Notes or any fees or other amounts payable hereunder,
      (d) release the Company from any of its obligations under Article VII or limit
      the liability of the Company thereunder or (e) amend or waive this
      Section 9.01 or the definition of "Majority Lenders"; and provided further
      that no
      amendment, waiver or consent shall, unless in writing and signed by the Agent
      in
      addition to the Lenders required above to take such action, affect the rights
      or
      duties of the Agent under this Agreement or any Note.

     

    SECTION
      9.02.   Notices,
      Etc.
      (a) All
      notices and other communications provided for hereunder shall be in writing
      (including telecopier, telegraphic or telex communication) and mailed,
      telecopied, telegraphed, telexed or delivered, if to the Company or to any
      Designated Subsidiary, at the Company's address at Corporate Headquarters,
      100
      Crystal A Drive, Hershey, Pennsylvania 17033-0810, Attention: Treasury
      Department, Fax No. (717) 534-6724; if to any Initial Lender, at its Domestic
      Lending Office specified opposite its name on Schedule I hereto; if to any
      other Lender, at its Domestic Lending Office specified in the Assumption
      Agreement or the Assignment and Acceptance, as the case may be, pursuant to
      which it became a Lender; and if to the Agent, at its address at Two Penn's
      Way,
      New Castle, Delaware 19720, Attention: Bank Loan Syndications, Fax No. (302)
      894-6120; or, as to any Borrower or the Agent, at such other address as shall
      be
      designated by such party in a written notice to the other parties and, as to
      each other party, at such other address as shall be designated by such party
      in
      a written notice to the Company and the Agent; provided
      that
      materials as may be agreed between the Borrowers and the Agent may be delivered
      to the Agent in accordance with clause (b) below. All such notices and
      communications shall, when mailed, telecopied, telegraphed or telexed, be
      effective when deposited in the mails, telecopied, delivered to the telegraph
      company or confirmed by telex answerback, respectively, except that notices
      and
      communications to the Agent pursuant to Article II, III or VIII shall not
      be effective until received by the Agent. Delivery by telecopier of an executed
      counterpart of any amendment or waiver of any provision of this Agreement or
      the
      Notes or of any Exhibit hereto to be executed and delivered hereunder shall
      be
      effective as delivery of a manually executed counterpart thereof.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        52

      

    

     

    (b) So
      long
      as Citibank or any of its Affiliates is the Agent, such materials as may be
      agreed between the Borrowers and the Agent may be delivered to the Agent in
      an
      electronic medium in a format acceptable to the Agent and the Lenders by e-mail
      at oploanswebadmin@citigroup.com. The Borrowers agree that the Agent may make
      such materials (collectively, the "Communications")
      available to the Lenders by posting such notices on Intralinks or a
      substantially similar electronic system (the "Platform"). The Borrowers
      acknowledge that (i) the distribution of material through an electronic medium
      is not necessarily secure and that there are confidentiality and other risks
      associated with such distribution, (ii) the Platform is provided "as is" and
      "as
      available" and (iii) neither the Agent nor any of its Affiliates warrants the
      accuracy, adequacy or completeness of the Communications or the Platform and
      each expressly disclaims liability for errors or omissions in the Communications
      or the Platform. No warranty of any kind, express, implied or statutory,
      including, without limitation, any warranty of merchantability, fitness for
      a
      particular purpose, non-infringement of third party rights or freedom from
      viruses or other code defects, is made by the Agent or any of its Affiliates
      in
      connection with the Platform.

     

    (c) Each
      Lender agrees that notice to it (as provided in the next sentence) (a
      "Notice")
      specifying that any Communications have been posted to the Platform shall
      constitute effective delivery of such information, documents or other materials
      to such Lender for purposes of this Agreement; provided
      that if
      requested by any Lender the Agent shall deliver a copy of the Communications
      to
      such Lender by email or telecopier. Each Lender agrees (i) to notify the Agent
      in writing of such Lender's e-mail address to which a Notice may be sent by
      electronic transmission (including by electronic communication) on or before
      the
      date such Lender becomes a party to this Agreement (and from time to time
      thereafter to ensure that the Agent has on record an effective e-mail address
      for such Lender) and (ii) that any Notice may be sent to such e-mail
      address.

     

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

     

    SECTION
      9.04.   Costs
      and Expenses.
      (a)
      The
      Company agrees to pay or cause to be paid on demand all reasonable and
      documented costs and expenses of the Agent in connection with the preparation,
      execution, delivery, administration, modification and amendment of this
      Agreement, the Notes and the other documents to be delivered hereunder,
      including, without limitation, (A) all due diligence, syndication
      (including printing, distribution and bank meetings), transportation, computer,
      duplication, messenger costs and expenses and (B) the reasonable fees and
      expenses of counsel for the Agent with respect thereto and with respect to
      advising the Agent as to its rights and responsibilities under this Agreement.
      The Company further agrees to pay or cause to be paid on demand all reasonable
      and documented costs and expenses of the Agent and the Lenders, if any
      (including, without limitation, reasonable counsel fees and expenses), in
      connection with the enforcement (whether through negotiations, legal proceedings
      or otherwise) of this Agreement, the Notes and the other documents to be
      delivered hereunder, including, without limitation, reasonable fees and
      expenses

     

    
      
        
        

      

      
        
        

        
          

        

      

      
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     of
      counsel for the Agent and each Lender in connection with the enforcement of
      rights under this Section 9.04(a).

     

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

     

    (c)  Promptly
      after receipt by an Indemnified Party of notice of the commencement of any
      action or proceeding involving any claim, damage, loss or liability referred
      to
      in paragraph (b) above, such Indemnified Party will, if a claim in respect
      thereof is to be made against any Borrower, give written notice to such Borrower
      of the commencement of such action; provided
      that the
      failure of any Indemnified Party to give notice as provided in this Section
      9.04(c) shall not relieve such Borrower of its obligations under paragraph
      (b)
      above, except only to the extent that such Borrower actually suffers damage
      solely as a result of such failure to give notice. In the event that any such
      action or proceeding is brought against an Indemnified Party, unless in such
      Indemnified Party's sole judgment (based on advise of counsel) a conflict of
      interest between such Indemnified Party and a Borrower may exist in respect
      thereof, such Borrower shall be entitled to participate in and to assume the
      defense thereof with counsel reasonably satisfactory to such Indemnified Party.
      After notice from such Borrower to such Indemnified Party of its election to
      assume the defense thereof, such Borrower shall not be liable to such
      Indemnified Party for any legal or other expenses subsequently incurred by
      such
      Indemnified Party in connection with the defense thereof (other than reasonable
      costs of investigation). No Borrower shall consent to the entry of any dismissal
      or judgment, or enter into any settlement of any pending or threatened action
      or
      proceeding against any Indemnified Party that is or could have been a party
      and
      for whom indemnity could have been sought under paragraph (b) above without
      the
      consent of such Indemnified Party unless such judgment, dismissal or settlement
      includes as an unconditional term thereof the giving of a release from all
      liability in respect of such action or proceeding to such Indemnified Party;
      provided
      that
      each Indemnified Party agrees that, if a Borrower reconfirms to such Indemnified
      Party that it is indemnified from all liability in respect of any such action
      or
      proceeding referred to in the preceding sentence, such Indemnified Party will
      not enter into any settlement of any such action or proceeding without the
      consent of such Borrower (which consent shall not be unreasonably withheld).
      In
      addition to the foregoing, each Borrower shall not, in assuming the defense
      of
      any Indemnified Party, agree to any dismissal or settlement without the prior
      written consent of such Indemnified Party if such dismissal or settlement (A)
      would require any admission or

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        54

      

    

     

     

    acknowledgement
      of culpability or wrongdoing by such Indemnified Party or (B) would provide
      for
      any nonmonetary relief to any Persons to be performed by such Indemnified
      Party.

     

    (d)  If
      any
      payment of principal of, or Conversion of, any Eurodollar Rate Advance or LIBO
      Rate Advance is made by any Borrower to or for the account of a Lender other
      than on the last day of the Interest Period for such Advance, as a result of
      (i) a payment or Conversion pursuant to Section 2.03(d), 2.10 or 2.12,
      (ii) a Commitment Increase pursuant to Section 2.05(c), (iii) acceleration
      of the maturity of the Advances pursuant to Section 6.01 or for any other
      reason, or (iv) by an Eligible Assignee to a Lender other than on the last
      day
      of the Interest Period for such Advance upon an assignment of rights and
      obligations under this Agreement pursuant to Section 9.07(a) as a result of
      a
      demand by the Company pursuant to Section 2.17, such Borrower shall, upon
      demand by such Lender (with a copy of such demand to the Agent), pay to the
      Agent for the account of such Lender any amounts required to compensate such
      Lender for any additional losses, costs or expenses that it may reasonably
      and
      actually incur as a result of such payment or Conversion, including, without
      limitation, any loss (other than loss of anticipated profits), cost or expense
      incurred by reason of the liquidation or reemployment of deposits or other
      funds
      acquired by any Lender to fund or maintain such Advance.

     

    (e)  Without
      prejudice to the survival of any other agreement of any Borrower hereunder,
      the
      agreements and obligations of such Borrower contained in Sections 2.11,
      2.14 and 9.04 shall survive the payment in full of principal, interest and
      all
      other amounts payable hereunder and relating to the Advances.

     

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

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        55

      

    

     

    SECTION
      9.07.   Assignments,
      Designations and Participations.
      (a)
      Each
      Lender may at any time, and if demanded by the Company pursuant to Section
      2.17,
      shall assign to one or more Persons all or a portion of its rights and
      obligations under this Agreement (including, without limitation, all or a
      portion of its Commitment, the Revolving Credit Advances owing to it and the
      Revolving Credit Note or Notes held by it); provided,
      however,
      that
      (i) each such assignment shall be of a constant, and not a varying,
      percentage of all rights and obligations under this Agreement (other than any
      right to make Competitive Bid Advances, Competitive Bid Advances owing to it
      and
      Competitive Bid Notes), (ii) except in the case of an assignment to a
      Person that, immediately prior to such assignment, was a Lender or an assignment
      of all of a Lender's rights and obligations under this Agreement, the amount
      of
      the Commitment of the assigning Lender being assigned pursuant to each such
      assignment (determined as of the date of the Assignment and Acceptance with
      respect to such assignment) shall in no event be less than $10,000,000 or an
      integral multiple of $1,000,000 in excess thereof, (iii) each such
      assignment shall be to an Eligible Assignee, (iv) each such assignment made
      as a
      result of a demand by the Company pursuant to Section 2.17 shall be arranged
      by
      the Company after consultation with the Agent and shall be either an assignment
      of all of the rights and obligations of the assigning Lender under this
      Agreement or an assignment of a portion of such rights and obligations made
      concurrently with another such assignment or other such assignments that
      together cover all of the rights and obligations of the assigning Lender under
      this Agreement, (v) no Lender shall be obligated to make any such
      assignment as a result of a demand by the Company pursuant to Section 2.17
      (A) so long as a Default shall have occurred and be continuing, (B) unless
      and until such Lender shall have received one or more payments from either
      the
      Company, any other Borrower or one or more Eligible Assignees in an aggregate
      amount at least equal to the aggregate outstanding principal amount of the
      Advances owing to such Lender, together with accrued interest thereon to the
      date of payment of such principal amount and all other amounts payable to such
      Lender under this Agreement (including, but not limited to, any amounts owing
      under Section 2.11 and Section 2.14), and the Company shall have satisfied
      all
      of its other obligations under this Agreement as of the effective date of the
      assignment and (C) if any such Eligible Assignee is not an existing Lender,
      the
      Company shall have paid to the Agent a processing and recordation fee of $1,000,
      (vi) the parties to each such assignment shall execute and deliver to the
      Agent, for its acceptance and recording in the Register, an Assignment and
      Acceptance, together with any Revolving Credit Note subject to such assignment
      and, if such assignment does not occur as a result of a demand by the Company
      pursuant to Section 2.17 (in which case the Company shall pay the fee required
      by clause (v)(C) of this Section 9.07(a)), a processing and recordation fee
      of
      $3,500, and (vii) in the case of an assignment to any Affiliate of such Lender
      that is engaged in the business of commercial banking, notice thereof shall
      have
      been given to the Company and the Agent. Upon such execution, delivery,
      acceptance and recording, from and after the effective date specified in each
      Assignment and Acceptance, (x) the assignee thereunder shall be a party
      hereto and, to the extent that rights and obligations hereunder have been
      assigned to it pursuant to such Assignment and Acceptance, have the rights
      and
      obligations of a Lender hereunder and (y) the Lender assignor thereunder
      shall, to the extent that rights and obligations hereunder have been assigned
      by
      it pursuant to such Assignment and Acceptance, relinquish its rights and be
      released from its obligations under this Agreement (and, in the case of an
      Assignment and Acceptance covering all or the remaining portion of an assigning
      Lender's rights and obligations under this Agreement, such Lender shall cease
      to
      be a party hereto).

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        56

      

    

     

    (b)  By
      executing and delivering an Assignment and Acceptance, the Lender assignor
      thereunder and the assignee thereunder confirm to and agree with each other
      and
      the other parties hereto as follows: (i) other than as provided in such
      Assignment and Acceptance, such assigning Lender makes no representation or
      warranty and assumes no responsibility with respect to any statements,
      warranties or representations made in or in connection with this Agreement
      or
      the execution, legality, validity, enforceability, genuineness, sufficiency
      or
      value of this Agreement or any other instrument or document furnished pursuant
      hereto; (ii) such assigning Lender makes no representation or warranty and
      assumes no responsibility with respect to the financial condition of any
      Borrower or the performance or observance by any Borrower of any of its
      obligations under this Agreement or any other instrument or document furnished
      pursuant hereto; (iii) such assignee confirms that it has received a copy
      of this Agreement, together with copies of the financial statements referred
      to
      in Section 4.01(e), the most recent financial statements referred to in
      Section 5.01(h) and such other documents and information as it has deemed
      appropriate to make its own credit analysis and decision to enter into such
      Assignment and Acceptance; (iv) such assignee will, independently and
      without reliance upon the Agent, such assigning Lender or any other Lender
      and
      based on such documents and information as it shall deem appropriate at the
      time, continue to make its own credit decisions in taking or not taking action
      under this Agreement; (v) such assignee confirms that it is an Eligible
      Assignee; (vi) such assignee appoints and authorizes the Agent to take such
      action as agent on its behalf and to exercise such powers and discretion under
      this Agreement as are delegated to the Agent by the terms hereof, together
      with
      such powers and discretion as are reasonably incidental thereto; and
      (vii) such assignee agrees that it will perform in accordance with their
      terms all of the obligations that by the terms of this Agreement are required
      to
      be performed by it as a Lender.

     

    (c)  Upon
      its
      receipt of an Assignment and Acceptance executed by an assigning Lender and
      an
      assignee representing that it is an Eligible Assignee, together with any
      Revolving Credit Note or Notes subject to such assignment, the Agent shall,
      if
      such Assignment and Acceptance has been completed and is in substantially the
      form of Exhibit C hereto, (i) accept such Assignment and Acceptance,
      (ii) record the information contained therein in the Register and
      (iii) give prompt notice thereof to each Borrower.

     

    (d)  The
      Agent
      shall maintain at its address referred to in Section 9.02 a copy of each
      Assignment and Acceptance delivered to and accepted by it and a register for
      the
      recordation of the names and addresses of the Lenders and the Commitment of,
      and
      principal amount of the Advances owing to, each Lender from time to time (the
      "Register").
      The
      entries in the Register shall be conclusive and binding for all purposes, absent
      manifest error, and each Borrower, the Agent and the Lenders may treat each
      Person whose name is recorded in the Register as a Lender hereunder for all
      purposes of this Agreement. The Register shall be available for inspection
      by
      any Borrower or any Lender at any reasonable time and from time to time upon
      reasonable prior notice.

     

    (e)  Each
      Lender may sell participations to one or more banks or other entities (other
      than any Borrower or any of its Affiliates) in or to all or a portion of its
      rights and obligations under this Agreement (including, without limitation,
      all
      or a portion of its Commitment, the Advances owing to it and any Note or Notes
      held by it); provided,
      however,
      that
      (i) such Lender's obligations under this Agreement (including, without
      limitation, its

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        57

      

    

     

    Commitment
      to any Borrower hereunder) shall remain unchanged, (ii) such Lender shall
      remain solely responsible to the other parties hereto for the performance of
      such obligations, (iii) such Lender shall remain the holder of any such
      Note for all purposes of this Agreement, (iv) each Borrower, the Agent and
      the other Lenders shall continue to deal solely and directly with such Lender
      in
      connection with such Lender's rights and obligations under this Agreement and
      (v) no participant under any such participation shall have any right to
      approve any amendment or waiver of any provision of this Agreement or any Note,
      or any consent to any departure by any Borrower therefrom, except to the extent
      that such amendment, waiver or consent would reduce the principal of, or
      interest on, the Advances or any fees or other amounts payable hereunder, in
      each case to the extent subject to such participation, or postpone any date
      fixed for any payment of principal of, or interest on, the Advances or any
      fees
      or other amounts payable hereunder, in each case to the extent subject to such
      participation. Each Lender agrees that, promptly upon selling any such
      participation in accordance with this Section 9.07(e), such Lender shall deliver
      written notice thereof to the Company.

     

    (f)  Any
      Lender may, in connection with any assignment or participation or proposed
      assignment or participation pursuant to this Section 9.07, disclose to the
      assignee, or participant or proposed assignee, or participant, any information
      relating to the Company or any other Borrower furnished to such Lender by or
      on
      behalf of such Borrower; provided
      that,
      prior to any such disclosure, the assignee, or participant or proposed assignee
      or participant shall agree to preserve the confidentiality of any Confidential
      Information relating to such Borrower received by it from such
      Lender.

     

    (g)  Notwithstanding
      any other provision set forth in this Agreement, any Lender may at any time
      create a security interest in all or any portion of its rights under this
      Agreement (including, without limitation, the Advances owing to it and any
      Note
      or Notes held by it) in favor of any Federal Reserve Bank in accordance with
      Regulation A of the Board of Governors of the Federal Reserve
      System.

     

    SECTION
      9.08.   Designated
      Subsidiaries.
      (a) Designation.
      The
      Company may at any time, and from time to time, by delivery to the Agent, not
      less than 10 Business Days before the effective date thereof, of a Designation
      Letter duly executed by the Company and the respective Subsidiary and
      substantially in the form of Exhibit E hereto, designate such Subsidiary as
      a
      "Designated Subsidiary" for purposes of this Agreement and such Subsidiary
      shall
      thereupon become a "Designated Subsidiary" for purposes of this Agreement and,
      as such, shall have all of the rights and obligations of a Borrower hereunder.
      The Agent shall promptly notify each Lender of each such designation by the
      Company and the identity of the respective Subsidiary. Following the delivery
      of
      a Designation Letter, if the designation of such Designated Subsidiary obligates
      the Agent or any Lender to comply with "know your customer" or similar
      identification procedures in circumstances where the necessary information
      is
      not already available to it, the Company shall, promptly upon the request of
      the
      Agent or any Lender, supply such documentation and other evidence as is
      reasonably requested by the Agent or any Lender in order for the Agent or such
      Lender to carry out and be satisfied it has complied with the results of all
      necessary "know your customer" or other similar checks under all applicable
      laws
      and regulations.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        58

      

    

     

    (b)  Termination.
      Upon
      the payment and performance in full of all of the indebtedness, liabilities
      and
      obligations under this Agreement and relating to the Advances of any Designated
      Subsidiary then, so long as at the time no Notice of Revolving Credit Borrowing
      or Notice of Competitive Bid Borrowing in respect of such Designated Subsidiary
      is outstanding, such Subsidiary's status as a "Designated Subsidiary" shall
      terminate upon notice to such effect from the Agent to the Lenders (which notice
      the Agent shall give promptly upon its receipt of a request therefor from the
      Company). Thereafter, the Lenders shall be under no further obligation to make
      any Advance hereunder to such Designated Subsidiary.

     

    SECTION
      9.09.   Confidentiality.
      Neither
      the Agent nor any Lender shall disclose any Confidential Information to any
      other Person without the consent of the relevant Borrower, other than
      (a) to the Agent's or such Lender's Affiliates and their respective
      officers, directors, employees, agents and advisors and, as contemplated by
      Section 9.07(f), to actual or prospective assignees and participants, and
      then only on a need-to-know and confidential basis in connection with the
      transactions contemplated by this Agreement, (b) pursuant to subpoena or other
      legal process or as otherwise required by law (provided that the Person making
      such disclosure shall, to the extent permitted by law, provide the Company
      with
      notice thereof), and (c) as requested or required by any state, federal or
      foreign authority or examiner regulating banks or banking having jurisdiction
      over any Lender.

     

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

     

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

     

    SECTION
      9.12.   Jurisdiction,
      Etc. (a)
      Each of
      the parties hereto hereby irrevocably and unconditionally submits to the
      exclusive jurisdiction only of any New York State court or federal court of
      the United States of America sitting in New York City, and any appellate court
      from any thereof, in any action or proceeding arising out of or relating to
      this
      Agreement or the Notes, or for recognition or enforcement of any judgment,
      and
      each of the parties hereto hereby irrevocably and unconditionally agrees that
      all claims in respect of any such action or proceeding may be heard and
      determined only in any such New York State court or, to the extent
      permitted by law, in such federal court. Notwithstanding the foregoing sentence,
      each of the parties hereto agrees that a final judgment in any such action
      or
      proceeding shall be conclusive and may be enforced in other jurisdictions by
      suit on the judgment or in any other manner provided by law. Each Designated
      Subsidiary that has its principal place of business outside of the United States
      of America hereby agrees that service of process in any such action or
      proceeding may be made upon the Company at its offices specified in Section
      9.02
      (the "Process
      Agent")
      and
      each such Designated Subsidiary hereby irrevocably appoints the Process Agent
      its authorized agent to accept such service of process, and agrees that the
      failure of the Process Agent to give any notice of any such service shall not
      impair or affect the validity of such service or of any judgment rendered in
      any
      action or proceeding based thereon. Each

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        59

      

    

     

    Borrower
      hereby further irrevocably consents to the service of process in any action
      or
      proceeding in such courts by the mailing thereof by any parties hereto by
      registered or certified mail, postage prepaid, to such Borrower at its address
      set forth in Section 9.02. Nothing in this Agreement shall affect any right
      that
      any party may otherwise have to serve legal process in any other manner
      permitted by law. To the extent that any Designated Subsidiary has or hereafter
      may acquire any immunity from jurisdiction of any court or from any legal
      process (whether through service or notice, attachment prior to judgment,
      attachment in aid of execution, execution or otherwise) with respect to itself
      or its property, such Designated Subsidiary hereby irrevocably waives such
      immunity in respect of its obligations under this Agreement.

     

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

     

    SECTION
      9.13.   Patriot
      Act.
      Each
      Lender hereby notifies each Borrower that pursuant to the requirements of the
      USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001))
      (the "Act"), it is required to obtain, verify and record information that
      identifies each borrower, guarantor or grantor (the "Loan Parties"), which
      information includes the name and address of each Loan Party and other
      information that will allow such Lender to identify such Loan Party in
      accordance with the Act.

     

    [THE
      REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          60

        

      

    

    

     

     

     

     

     

     

     

     

     

    

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

     

     

     

    

    
      	 	
              THE
                HERSHEY COMPANY

              By:   /s/
                David J. West

              Name:
                David J. West

              Title:
                Vice President, Chief

              Financial
                Officer

               

            
	 	
              By:   
                /s/
                Rosa C. Stroh  

              Name:
                Rosa C. Stroh

              Title:
                Vice President & Treasurer

               

            
	 	
              CITIBANK,
                N.A.,

              As
                Administrative Agent

               

              By:   /s/
                Carolyn Kee 

              Name:
                Carolyn Kee

              Title:
                Managing Director

            
	 	
              Lenders

            
	
               

            	
               CITIBANK,
                N.A.

               

               By:   /s/
                Carolyn Kee

              Name:
                Carolyn Kee

              Title:
                Managing Director

               

            
	
               

            	
               BANK
                OF AMERICA, N.A.

               

               By:   /s/
                J. Casey Cosgrove

              Name: 
                J. Casey Cosgrove

              Title: 
                Vice President

               

            
	 	
               UBSLOAN
                FINANCE LLC

               

               By:   /s/
                Irja R. Otsa

              Name: 
                Irja R. Otsa

              Title: 
                Associate Director

               

            
	 	
               By:   /s/
                Richard L. Tavrow

              Name: 
                Richard L. Tavrow

              Title: 
                Director

            

    

    

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

    SCHEDULE
      I TO THE AMENDMENT AND RESTATEMENT

     

    COMMITMENTS
      AND APPLICABLE LENDING OFFICES

     

    
      	
              Name
                of Initial Lender

            	
              Commitment

            	
              Domestic
                Lending Office

            	
              Eurodollar
                Lending Office

            
	
              Bank
                of America, N.A.

            	
              $133,333,333

            	
              901
                Main Street, 14th
                Floor

              Dallas,
                TX 75202

              Attn:
                Annette
                Hunt

              T:
                (214) 209-4108

              F:
                (214) 290-8378

            	
              901
                Main Street, 14th
                Floor

              Dallas,
                TX 75202

              Attn:
                Annette
                Hunt

              T:
                (214) 209-4108

              F:
                (214) 290-8378

            
	
              Citibank,
                N.A.

            	
              $133,333,334

            	
              Two
                Penns Way

              New
                Castle, DE 19720

              Attn:
                Bank Loan Syndications

              T:
                (302) 894-6029

              F:
                (212) 994-0961

            	
              Two
                Penns Way

              New
                Castle, DE 19720

              Attn:
                Bank Loan Syndications

              T:
                (302) 894-6029

              F:
                (212) 994-0961

            
	
              UBS
                Loan Finance LLC

            	
              $133,333,333

            	
              677
                Washington Blvd.

              Stamford,
                CT 06901

              Attn:
                Safraz Hassan

              T:
                (203) 719-3143

              F:
                (203) 719-3888 

            	
              677
                Washington Blvd.

              Stamford,
                CT 06901

              Attn:
                Safraz Hassan

              T:
                (203) 719-3143

              F:
                (203) 719-3888 

            

    

    

    TOTAL
      OF            
      $400,000,000

    COMMITMENTS

     

    

     

    

    

     

    

    
      
        
          
          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    

     

    SCHEDULE
      3.01(b)

     

    DISCLOSED
      LITIGATION

     

    NONE

     

    

     

    

    
      
        
          
          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

    

    SCHEDULE
      4.01(c)

     

    REQUIRED
      AUTHORIZATIONS AND APPROVALS

     

    NONE

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

      EXHIBIT
        A-1 - FORM OF

      REVOLVING
        CREDIT

      PROMISSORY
        NOTE

       

       

      U.S.$_______________                        
        Dated:
        March 13, 2006

       

      FOR
        VALUE
        RECEIVED, the undersigned, [NAME OF BORROWER], a _________________________
        corporation (the "Borrower"),
        HEREBY PROMISES TO PAY to the order of _________________________ (the
        "Lender")
        for
        the account of its Applicable Lending Office on the Termination Date (each
        as
        defined in the Credit Agreement referred to below) the principal sum of
        U.S.$[amount of the Lender's Commitment in figures] or, if less, the aggregate
        principal amount of the Revolving Credit Advances (as defined in the Credit
        Agreement referred to below) made by the Lender to the Borrower pursuant
        to the
        Credit Agreement dated as of March 13, 2006 among The Hershey Company, the
        Lender and certain other lenders party thereto, Citibank, N.A., as
        administrative agent (the "Agent")
        for
        the Lender and such other lenders, Bank of America, N.A., as syndication
        agent,
        UBS Loan Finance LLC, as documentation agent, and Citigroup Global Markets
        Inc.
        and Banc America Securities LLC, as joint lead arrangers and joint book managers
        (as amended or modified from time to time, the "Credit
        Agreement";
        the
        terms defined therein being used herein as therein defined), outstanding
        on the
        Termination Date.

       

      The
        Borrower promises to pay interest on the unpaid principal amount of each
        Revolving Credit Advance from the date of such Revolving Credit Advance until
        such principal amount is paid in full, at such interest rates, and payable
        at
        such times, as are specified in the Credit Agreement.

       

      Both
        principal and interest are payable in lawful money of the United States of
        America to Citibank, N.A., as Agent, at the Agent's Account in same day funds.
        Each Revolving Credit Advance owing to the Lender by the Borrower pursuant
        to
        the Credit Agreement, and all payments made on account of principal thereof,
        shall be recorded by the Lender and, prior to any transfer hereof, endorsed
        on
        the grid attached hereto which is part of this Promissory Note.

       

      This
        Promissory Note is one of the Revolving Credit Notes referred to in, and
        is
        entitled to the benefits of, the Credit Agreement. The Credit Agreement,
        among
        other things, (i) provides for the making of Revolving Credit Advances by
        the Lender to the Borrower and each other "Borrower" thereunder from time
        to
        time in an aggregate amount not to exceed at any time outstanding the U.S.
        dollar amount first above mentioned, the indebtedness of the Borrower resulting
        from each such Revolving Credit Advance being evidenced by this Promissory
        Note,
        and (ii) contains provisions in Section 6.01 for acceleration of the
        maturity hereof upon the happening of certain stated events and also for
        prepayments on account of principal hereof prior to the maturity hereof upon
        the
        terms and conditions therein specified. 

       

      The
        Borrower hereby waives presentment, demand, protest and notice of any kind.
        No
        failure to exercise, and no delay in exercising, any rights hereunder on
        the
        part of the holder hereof shall operate as a waiver of such rights.

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          2

        

      

       

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

       

      

      [NAME
        OF
        BORROWER]

       

      By_____________________    

      Title:
        

       

      

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
             

             

            

          

        

      

      ADVANCES
        AND PAYMENTS OF PRINCIPAL

      

      

      

      

      
        	
                 

                 

                Date

              	
                 

                 

                Amount

                of

                Advance

              	
                 

                 

                Interest

                Rate

              	
                 

                 

                Interest

                Period

              	
                 

                 

                Amount
                  of

                Principal
                  Paid

                or
                  Prepaid

              	
                 

                 

                Unpaid
                  Principal

                Balance

              	
                 

                 

                Notation
                  

                Made
                  By

              
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

      

      

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
             

            

          

        

      

      EXHIBIT
        A-2 - FORM OF

      COMPETITIVE
        BID

      PROMISSORY
        NOTE

       

      U.S.$_______________                       
        Dated:
        _______________

       

      FOR
        VALUE
        RECEIVED, the undersigned, [NAME OF BORROWER], a _________________________
        corporation (the "Borrower"),
        HEREBY PROMISES TO PAY to the order of _________________________ (the
        "Lender")
        for
        the account of its Applicable Lending Office (as defined in the Credit Agreement
        dated as of March 13, 2006 among The Hershey Company, the Lender and certain
        other lenders party thereto, Citibank, N.A., as administrative agent (the
        "Agent")
        for
        the Lender and such other lenders, Bank of America, N.A., as syndication
        agent,
        UBS Loan Finance LLC, as documentation agent, and Citigroup Global Markets
        Inc.
        and Banc America Securities LLC, as joint lead arrangers and joint book managers
        (as amended or modified from time to time, the "Credit
        Agreement";
        the
        terms defined therein being used herein as therein defined)), on
        _______________, the principal amount of U.S.$_______________.

       

      The
        Borrower promises to pay interest on the unpaid principal amount hereof from
        the
        date hereof until such principal amount is paid in full, at the interest
        rate
        and payable on the interest payment date or dates provided below:

       

      Interest
        Rate: _____% per annum (calculated on the basis of a year of _____ days for
        the
        actual number of days elapsed).

       

      Both
        principal and interest are payable in lawful money of the United States of
        America to Citibank, N.A. for the account of the Lender at the Agent's Account
        in same day funds.

       

      This
        Promissory Note is one of the Competitive Bid Notes referred to in, and is
        entitled to the benefits of, the Credit Agreement. The Credit Agreement,
        among
        other things, contains provisions in Section 6.01 for acceleration of the
        maturity hereof upon the happening of certain stated events. 

       

      The
        Borrower hereby waives presentment, demand, protest and notice of any kind.
        No
        failure to exercise, and no delay in exercising, any rights hereunder on
        the
        part of the holder hereof shall operate as a waiver of such rights.

       

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

       

      [NAME
        OF
        BORROWER]

       

      By
        _____________________    

      Title:
        

       

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
             

             

          

        

      

      EXHIBIT
        B-1 - FORM OF NOTICE OF

      REVOLVING
        CREDIT BORROWING

       

      Citibank,
        N.A., as Agent

         
        for the Lenders party

         
        to the Credit Agreement

         
        referred to below

      Two
        Penn’s Way

      New
        Castle, Delaware 19720             [Date]

       

      Attention:
        Bank Loan Syndications

       

      Ladies
        and Gentlemen:

       

      The
        undersigned, [Name of Borrower], refers to the Credit Agreement, dated as
        of
        March 13, 2006 (as amended or modified from time to time, the "Credit
        Agreement",
        the
        terms defined therein being used herein as therein defined), among The Hershey
        Company, certain Lenders party thereto, Citibank, N.A., as administrative
        agent
        (the "Agent")
        for
        said Lenders, Bank of America, N.A., as syndication agent, UBS Loan Finance
        LLC,
        as documentation agent, and Citigroup Global Markets Inc. and Banc America
        Securities LLC, as joint lead arrangers and joint book managers, and hereby
        gives you notice, irrevocably, pursuant to Section 2.02 of the Credit
        Agreement that the undersigned hereby requests a Revolving Credit Borrowing
        under the Credit Agreement, and in that connection sets forth below the
        information relating to such Revolving Credit Borrowing (the "Proposed
        Revolving Credit Borrowing")
        as
        required by Section 2.02(a) of the Credit Agreement:

       

      (i)
        The
        Business Day of the Proposed Revolving Credit Borrowing is
        _______________.

       

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

       

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

       

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

       

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

       

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

       

      
        _____________________________________ 

      

      
        
          *      
            This language should be added only if the Borrower is a Designated
            Subsidiary.

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          2

        

      

       

       

                  
         representations and warranties contained in the Designation Letter of the
        undersigned is correct, before and after giving effect to the Proposed Revolving
        Credit Borrowing and to the application of the proceeds therefrom, as though
        made on and as of such date]; and

       

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

       

      Very
        truly yours,

       

      [NAME
        OF
        BORROWER]

       

      By______________________    

      Title:

       

      

        
           

        

      

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
             

          

        

      

      EXHIBIT
        B-2 - FORM OF NOTICE OF

      COMPETITIVE
        BID BORROWING

       

      Citibank,
        N.A., as Agent

        
        for the Lenders party

        
        to the Credit Agreement

        
        referred to below

      Two
        Penn’s Way

      New
        Castle, Delaware 19720    
 [Date]

      

       

      Attention:
        Bank Loan Syndications

       

      Ladies
        and Gentlemen:

       

      The
        undersigned, [Name of Borrower], refers to the Credit Agreement, dated as
        of
        March 13, 2006 (as amended or modified from time to time, the "Credit
        Agreement",
        the
        terms defined therein being used herein as therein defined), among The Hershey
        Company, certain Lenders party thereto, Citibank, N.A., as administrative
        agent
        (the "Agent")
        for
        said Lenders, Bank of America, N.A., as syndication agent, UBS Loan Finance
        LLC,
        as documentation agent, and Citigroup Global Markets Inc. and Banc America
        Securities LLC, as joint lead arrangers and joint book managers, and hereby
        gives you notice, irrevocably, pursuant to Section 2.03 of the Credit
        Agreement that the undersigned hereby requests a Competitive Bid Borrowing
        under
        the Credit Agreement, and in that connection sets forth the terms on which
        such
        Competitive Bid Borrowing (the "Proposed
        Competitive Bid Borrowing")
        is
        requested to be made:

       

      (A) Date
        of
        Competitive Bid Borrowing    
________________________

       

      (B) Principal
        Amount

      of
        Competitive Bid Borrowing     
_______________________

       

      (C) [Maturity
        Date] [Interest Period]*  
________________________

       

      (D) Interest
        Rate Basis

      (LIBO
        Rate or Fixed Rate)      
 ________________________

       

      (E) Interest
        Payment Date(s)        
         ________________________

       

      (F) ___________________        
         ________________________

       

      (G) ___________________        
         ________________________

       

      (H) ___________________        
         ________________________

       

      _______________________________

      *    
Which
        shall be subject to the definition
        of "Interest Period" and end on or before the Termination Date.

       

      
        
          
          

        

        
          
          

          
            

            2

        

        
          
          

        

      

       

       

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

      

                      

          (a)
            the
            representations and warranties of the Company contained in Section  4.01
            (except the representations set forth in the last sentence of subsection
            (e)
            thereof and in subsection (f) thereof (other than clause (i)(B) thereof))
            are
            correct, before and after giving effect to the Proposed Competitive Bid
            Borrowing and to the application of the proceeds therefrom, as though
            made on
            and as of such date* [and
            the
            representations and warranties contained in the Designation Letter of
            the
            undersigned is correct, before and after giving effect to the Proposed
            Competitive Bid Borrowing and to the application of the proceeds therefrom,
            as
            though made on and as of such date];

           

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

           

          (c)
            no
            event has occurred and no circumstance exists as a result of which the
            information concerning the undersigned that has been provided to the
            Agent and
            each Lender by the undersigned in connection with the Credit Agreement
            would
            include an untrue statement of a material fact or omit to state any material
            fact or any fact necessary to make the statements contained therein,
            in the
            light of the circumstances under which they were made, not misleading;
            and

           

          (d)
            the
            aggregate amount of the Proposed Competitive Bid Borrowing and all other
            Borrowings to be made on the same day under the Credit Agreement is within
            the
            aggregate amount of the unused Commitments of the Lenders.

           

          
            
               

            

          

        

      

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

       

      Very
        truly yours,

       

      [NAME
        OF
        BORROWER]

       

      By____________________________    

      Title:

       

      

       

      ______________________________

        
          *  
            This language should be added only if the Borrower is a Designated
            Subsidiary.

           

        

        
           

           

        

      

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
             

          

        

      

      EXHIBIT
        C
        - FORM OF

      ASSIGNMENT
        AND ACCEPTANCE

       

      [Date]

       

      

      Reference
        is made to the Credit Agreement dated as of March 13, 2006 (as amended or
        modified from time to time, the "Credit
        Agreement")
        among
        The Hershey Company, a Delaware corporation (the "Company"),
        the
        Lenders (as defined in the Credit Agreement), Citibank, N.A., as administrative
        agent (the "Agent")
        for
        the Lenders, Bank of America, N.A., as syndication agent, UBS Loan Finance
        LLC,
        as documentation agent, and Citigroup Global Markets Inc. and Banc America
        Securities LLC, as joint lead arrangers and joint book managers. Terms defined
        in the Credit Agreement are used herein with the same meaning.

       

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

       

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

       

      2. 
The
        Assignor (i) represents and warrants that it is the legal and beneficial
        owner of the interest being assigned by it hereunder and that such interest
        is
        free and clear of any adverse claim; (ii) makes no representation or
        warranty and assumes no responsibility with respect to any statements,
        warranties or representations made in or in connection with the Credit Agreement
        or the execution, legality, validity, enforceability, genuineness, sufficiency
        or value of the Credit Agreement or any other instrument or document furnished
        pursuant thereto; (iii) makes no representation or warranty and assumes no
        responsibility with respect to the financial condition of any Borrower or
        the
        performance or observance by any Borrower of any of its obligations under
        the
        Credit Agreement or any other instrument or document furnished pursuant thereto;
        and (iv) attaches each Revolving Credit Note of a Borrower held by the
        Assignor and requests that the Agent exchange each Revolving Credit Note
        for a
        new Revolving Credit Note of such Borrower payable to the order of the Assignee
        in an amount equal to the Commitment assumed by the Assignee pursuant hereto
        or
        new Revolving Credit Notes of such Borrower payable to the order of the Assignee
        in an amount equal to the Commitment assumed by the Assignee pursuant hereto
        and
        the Assignor in an amount equal to the Commitment retained by the Assignor
        under
        the Credit Agreement, respectively, as specified on Schedule 1
        hereto.

       

      3. 
The
        Assignee (i) represents and warrants that it is legally authorized to enter
        into this Assignment and Acceptance; (ii) confirms that it has received a
        copy
        of the Credit Agreement, together with copies of the financial statements
        referred to in Section 4.01(e) thereof, 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          2

        

      

       

      the
        most
        recent financial statements referred to in Section 5.01(h) thereof and such
        other documents and information as it has deemed appropriate to make its
        own
        credit analysis and decision to enter into this Assignment and Acceptance;
        (iii) agrees that it will, independently and without reliance upon the
        Agent, the Assignor or any other Lender and based on such documents and
        information as it shall deem appropriate at the time, continue to make its
        own
        credit decisions in taking or not taking action under the Credit Agreement;
        (iv) confirms that it is an Eligible Assignee; (v) appoints and
        authorizes the Agent to take such action as agent on its behalf and to exercise
        such powers and discretion under the Credit Agreement as are delegated to
        the
        Agent by the terms thereof, together with such powers and discretion as are
        reasonably incidental thereto; (vi) agrees that it will perform in
        accordance with their terms all of the obligations that by the terms of the
        Credit Agreement are required to be performed by it as a Lender; and
        (vii) attaches any U.S. Internal Revenue Service forms required under
        Section 2.14 of the Credit Agreement.

       

      4. 
Following
        the execution of this Assignment and Acceptance, it will be delivered to
        the
        Agent for acceptance and recording by the Agent pursuant to Section 9.07
        of the
        Credit Agreement. The effective date for this Assignment and Acceptance (the
        "Effective
        Date")
        shall
        be the date of acceptance hereof by the Agent, unless otherwise specified
        on
        Schedule 1 hereto.

       

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

       

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

       

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

       

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

       

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

       

      

       

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
             

          

        

      

      Schedule
        1

      to

      Assignment
        and Acceptance

       

      

        
          	
                  Percentage
                    interest assigned:

                	
                  _______%

                
	 	 
	
                  Assignee's
                    Commitment:

                	
                  $__________

                
	 	 
	
                  Aggregate
                    outstanding principal amount of Revolving Credit Advances
                    assigned:

                	
                  $__________

                
	 	 
	
                  Principal
                    amount of Revolving Credit Note payable to Assignee:

                	
                  $__________

                
	 	 
	
                  Principal
                    amount of Revolving Credit Note payable to Assignor:

                	
                  $__________

                
	 	 
	
                  Effective
                    Date*:
                    ____________________

                	 

        

        

        
                                                                                    
          [NAME OF ASSIGNOR], as Assignor

      

       

      By______________________________     

      Title:

       

      Dated:
        _______________

       

      [NAME
        OF
        ASSIGNEE], as Assignee

       

      By_______________________________     

      Title:

       

      Dated:
        _______________

       

      Domestic
        Lending Office:

      [Address]

       

      Eurodollar
        Lending Office:

      [Address]

       

       

      _____________________

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

       

       

      
        
          
          

        

        
          
          

          
            

            2

        

        
          
          

        

      

       

       

      Accepted
        and Approved this

      __________
        day of _______________

       

      CITIBANK,
        N.A., as Agent

       

      By__________________________________     

      Title:

       

      Approved
        this __________ day

      of
        _______________

       

      THE
        HERSHEY COMPANY

       

      By____________________________________     

      Title:

      
 

      

        
          

            
              
                
                   

                

                
                

              

              
                
                

                
                  

                

              

              
                
                

                
                   

                  

                

              

            

        

      

      EXHIBIT
        D
        - FORM OF

      ASSUMPTION
        AGREEMENT

       

                                          
        Dated: ________

       

      The
        Hershey Company

      Corporate
        Headquarters

      Hershey,
        Pennsylvania 17033-0810

       

      Attention:
        Treasury Department

       

      Citibank,
        N. A.

         
        as Agent

      Two
        Penn’s Way

      New
        Castle, Delaware 19720

       

      Attention:
        Bank Loan Syndications

       

      Ladies
        and Gentlemen:

       

      Reference
        is made to the Credit Agreement, dated as of March 13, 2006 (as amended or
        modified from time to time, the "Credit
        Agreement"),
        among
        The Hershey Company, a Delaware corporation (the "Company"),
        the
        Lenders (as defined in the Credit Agreement) party thereto, Citibank, N.A.,
        as
        administrative agent for such Lenders (the "Agent"),
        Bank
        of America, N.A., as syndication agent, UBS Loan Finance LLC, as documentation
        agent, and Citigroup Global Markets Inc. and Banc America Securities LLC,
        as
        joint lead arrangers and joint book managers. Terms defined in the Credit
        Agreement are used herein with the same meaning.

       

      The
        undersigned (the "Assuming
        Lender")
        proposes to become an Assuming Lender pursuant to Section 2.05(c) of the
        Credit
        Agreement and, in that connection, hereby agrees that it shall become a Lender
        for purposes of the Credit Agreement on [applicable Commitment Increase Date]
        and that its Commitment shall as of such date be $__________.

       

      The
        undersigned (i) confirms that it has received a copy of the Credit
        Agreement, together with copies of the financial statements referred to in
        Section 4.01(e) thereof, the most recent financial statements referred to
        in Section 5.01(h) thereof and such other documents and information as it
        has deemed appropriate to make its own credit analysis and decision to enter
        into this Assumption Agreement; (ii) agrees that it will, independently and
        without reliance upon the Agent or any other Lender and based on such documents
        and information as it shall deem appropriate at the time, continue to make
        its
        own credit decisions in taking or not taking action under the Credit Agreement;
        (iii) appoints and authorizes the Agent to take such action as agent on its
        behalf and to exercise such powers under the Credit Agreement as are delegated
        to the Agent by the terms thereof, together with such powers as are reasonably
        incidental thereto; (iv) agrees that it will perform in accordance with
        their terms all of the obligations which by the terms of the Credit Agreement
        are required to be performed by it as a Lender; (v) confirms that
        it

       

       

      
        
          
          

        

        
          
          

          
            

            2

        

        
          
          

        

      

       

       

      is
        an
        Eligible Assignee; (vi) specifies as its Applicable Lending Offices (and
        address for notices) the offices set forth beneath its name on the signature
        pages hereof; and (vii) attaches the forms prescribed by the Internal
        Revenue Service of the United States required under Section 2.14 of the Credit
        Agreement.

       

      The
        effective date for this Assumption Agreement shall be [applicable Commitment
        Increase Date.] Upon delivery of this Assumption Agreement to the Company
        and
        the Agent, and satisfaction of all conditions imposed under Section 2.05(c)
        as
        of [date specified above], the undersigned shall be a party to the Credit
        Agreement and shall have all of the rights and obligations of a Lender
        thereunder. As of [date specified above], the Agent shall make all payments
        under the Credit Agreement in respect of the interest assigned hereby
        (including, without limitation, all payments of principal, interest and facility
        fees) to the Assuming Lender.

       

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

      

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

       

      Very
        truly yours,

       

      [NAME
        OF
        ASSUMING LENDER]

       

      By________________________

      Name:

          
        Title:

      

        
        Domestic Lending Office

        
        (and address for notices):

      

        
        [Address]    

      

        
        Eurodollar Lending Office

       

        
        [Address]

       

      
        
           

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          3

          

        

      

      Acknowledged
        and Agreed to:

       

      THE
        HERSHEY COMPANY

       

      By______________________

      Name:

      Title:

       

      CITIBANK,
        N.A.,

      As
        Agent

       

      By______________________

      Name:

      Title:

      

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
             

             

            

          

        

      

      EXHIBIT
        E
        - FORM OF

      DESIGNATION
        LETTER

       

      [DATE]

       

      To
        Citibank, N.A.,

        
        as Agent for the Lenders 

        
        party to the Credit Agreement

        
        referred to below 

       

      Ladies
        and Gentlemen:

       

      Reference
        is made to the Credit Agreement dated as of March 13, 2006 (the "Credit
        Agreement")
        among
        The Hershey Company(the "Company"),
        the
        Lenders named therein, Citibank, N.A., as administrative agent (the
        "Agent")
        for
        said Lenders, Bank of America, N.A., as syndication agent, UBS Loan Finance
        LLC,
        as documentation agent, and Citigroup Global Markets Inc. and Banc America
        Securities LLC, as joint lead arrangers and joint book managers. For convenience
        of reference, terms used herein and defined in the Credit Agreement shall
        have
        the respective meanings ascribed to such terms in the Credit
        Agreement.

       

      Please
        be
        advised that the Company hereby designates its undersigned Subsidiary,
        ____________ (the "Designated
        Subsidiary"),
        as a
        "Designated Subsidiary" under and for all purposes of the Credit
        Agreement.

       

      The
        Designated Subsidiary, in consideration of each Lender's agreement to extend
        credit to it under and on the terms and conditions set forth in the Credit
        Agreement, does hereby assume each of the obligations imposed upon a "Designated
        Subsidiary" and a "Borrower" under the Credit Agreement and agrees to be
        bound
        by the terms and conditions of the Credit Agreement. In furtherance of the
        foregoing, the Designated Subsidiary hereby represents and warrants to each
        Lenders as follows:

       

      1. 
The
        Designated Subsidiary is a corporation duly incorporated, validly existing
        and
        in good standing under the laws of __________________ and is duly qualified
        to
        transact business in all jurisdictions in which such qualification is
        required.

       

      2. 
The
        execution, delivery and performance by the Designated Subsidiary of this
        Designation Letter, the Credit Agreement and the Notes of such Designated
        Subsidiary, and the consummation of the transactions contemplated thereby,
        are
        within the Designated Subsidiary's corporate powers, have been duly authorized
        by all necessary corporate action, and do not and will not contravene (i)
        the
        charter or by-laws of the Designated Subsidiary or (ii) law or any contractual
        restriction binding on or affecting the Designated Subsidiary.

       

      3. 
This
        Designation Agreement and each of the Notes of the Designated Subsidiary,
        when
        delivered, will have been duly executed and delivered, and this Designation
        Letter, the Credit Agreement and each of the Notes of the Designated Subsidiary,
        when delivered, will constitute the legal, valid and binding obligations
        of the
        Designated Subsidiary enforceable against the Designated Subsidiary in
        accordance with 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          2

        

      

       

       

       

      their
        respective terms except to the extent that such enforcement may be limited
        by
        applicable bankruptcy, insolvency and other similar laws affecting creditors'
        rights generally.

       

      4. 
There
        is
        no pending or threatened action, suit, investigation, litigation or proceeding
        including, without limitation, any Environmental Action, affecting the
        Designated Subsidiary or any of its Subsidiaries before any court, governmental
        agency or arbitrator that (i) could be reasonably likely to have a Material
        Adverse Effect, or (ii) purports to effect the legality, validity or
        enforceability of this Designation Letter, the Credit Agreement, any Note
        of the
        Designated Subsidiary or the consummation of the transactions contemplated
        thereby.

       

      5. 
No
        authorization or approval or other action by, and no notice to or filing
        with,
        any governmental authority or administrative or regulatory body or any other
        third party are required in connection with the execution, delivery or
        performance by the Designated Subsidiary of this Designation Letter, the
        Credit
        Agreement or the Notes of the Designated Subsidiary except for such
        authorizations, consents, approvals, licenses, filings or registrations as
        have
        heretofore been made, obtained or effected and are in full force and
        effect.

       

                               
        6. 
        The
        Designated Subsidiary is not, and immediately after the application by
        the
        Designated Subsidiary of the proceeds of each Advance  will not be, an
        "investment company", or an "affiliated person" of, or "promotor" or "principal
        underwriter" for, an "investment company", as such terms are defined in the
        Investment Company Act of 1940, as amended.

       

      Very
        truly yours,

       

      THE
        HERSHEY COMPANY

      

      By_________________________

      Title:

       

      

       

      [THE
        DESIGNATED SUBSIDIARY]

       

      By__________________________

      Title:

       

      

       

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
             

          

        

      

      EXHIBIT
        F
        - FORM OF

      ACCEPTANCE
        BY PROCESS AGENT

       

      [Letterhead
        of Process Agent]

       

                                                     
        [Date]

       

      To
        each
        of the Lenders party

      to
        the
        Credit Agreement (as defined 

      below)
        and to Citibank, N.A.,

      as
        Agent
        for said Lenders

       

      [Name
        of Designated Subsidiary]

       

      Ladies
        and Gentlemen:

       

      Reference
        is made to (i) that certain Credit Agreement, dated as of March 13, 2006,
        among
        The Hershey Company (the "Company"),
        the
        Lenders named therein, Citibank, N.A., as administrative agent (the
        "Agent")
        for
        said Lenders, Bank of America, N.A., as syndication agent, UBS Loan Finance
        LLC,
        as documentation agent, and Citigroup Global Markets Inc. and Banc America
        Securities LLC, as joint lead arrangers and joint book managers (as hereafter
        amended, supplemented or otherwise modified from time to time, the "Credit
        Agreement";
        the
        terms defined therein being used herein as therein defined), and (ii) to
        the Designation Letter, dated _________, pursuant to which __________ has
        become
        a Borrower under the Credit Agreement.

       

      Pursuant
        to Section 9.12(a) of the Credit Agreement, __________ has appointed the
        Company
        (with an office on the date hereof at Corporate Headquarters, 100 Crystal
        A
        Drive, Hershey, Pennsylvania 17033-0810, United States) as Process Agent
        to
        receive on behalf of ______________ service of copies of the summons and
        complaint and any other process which may be served in any action or proceeding
        in any New York State or Federal court of the United States of America sitting
        in New York City arising out of or relating to the Credit
        Agreement.

       

      The
        Company hereby accepts such appointment as Process Agent and agrees with
        each of
        you that (i) the undersigned will not terminate or abandon the undersigned
        agency as such Process Agent without at least six months' prior notice to
        the
        Agent (and hereby acknowledges that the undersigned has been retained for
        its
        services as Process Agent through __________), (ii) the undersigned will
        maintain an office in the United States through such date and will give the
        Agent prompt notice of any change of address of the undersigned, (iii) the
        undersigned will perform its duties as Process Agent to receive on behalf
        of
        ______________ service of copies of the summons and complaint and any other
        process which may be served in any action or proceeding in any New York State
        or
        Federal court of the United States of America sitting in New York City arising
        out of or relating to the Credit Agreement and (iv) the 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          2

        

      

       

       

       

       

      undersigned
        will forward forthwith to ______________ at its address at ________________
        or,
        if different, its then current address, copies of any summons, complaint
        and
        other process which the undersigned receives in connection with its appointment
        as Process Agent.

       

      This
        acceptance and agreement shall be binding upon the undersigned and all
        successors of the undersigned.

       

      Very
        truly yours,

       

      [PROCESS
        AGENT]

       

      By_______________________

       

      

       

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
             

          

        

      

      EXHIBIT
        G
        - FORM OF

      OPINION
        OF BURTON H. SNYDER, SENIOR VICE PRESIDENT,

      GENERAL
        COUNSEL AND SECRETARY 

      OF
        THE
        COMPANY

       

                                                                   
        [Effective Date]

       

      To
        each
        of the Lenders party

       
to
        the Credit Agreement referred 

       
to
        below and to Citibank, N.A., as

       
        Agent for such Lenders

       

      The
        Hershey Company

       

      Ladies
        and Gentlemen:

       

      This
        opinion is furnished to you pursuant to Section 3.01(g)(iv) of the Credit
        Agreement, dated as of March 13, 2006 (the "Credit
        Agreement"),
        among
        The Hershey Company (the "Company"),
        the
        Lenders party thereto, Citibank, N.A., as administrative agent (the
        "Agent")
        for
        said Lenders, Bank of America, N.A., as syndication agent, UBS Loan Finance
        LLC,
        as documentation agent, and Citigroup Global Markets Inc. and Banc America
        Securities LLC, as joint lead arrangers and joint book managers. Terms defined
        in the Credit Agreement are used herein as therein defined.

       

      I
        am the
        Senior Vice President, General Counsel and Secretary of the Company, and
        I have
        acted as counsel for the Company in connection with the preparation, execution
        and delivery of the Credit Agreement.

       

      In
        that
        connection, I have examined:

       

      (1) 
the
        Credit Agreement and the Revolving Credit Notes of the Company;

       

      (2) 
the
        documents furnished by the Company pursuant to Article III of the Credit
        Agreement;

       

      (3) 
the
        Amended and Restated Certificate of Incorporation of the Company and all
        amendments thereto (the "Charter");
        and

       

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

       

      I
        have
        also examined the originals, or copies certified to my satisfaction, of such
        other corporate records of the Company, certificates of public officials
        and of
        officers of the Company, and agreements, instruments and other documents,
        as I
        have deemed necessary as a basis for the opinions expressed below. In making
        such examinations, I have assumed the 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          2

        

      

       

       

       

       

      genuineness
        of all signatures (other than those on behalf of the Company), the authenticity
        of all documents submitted to me as originals and the conformity to authentic
        original documents of all documents submitted to me as certified, conformed
        or
        photographic copies. As to questions of fact material to such opinions, I
        have,
        when relevant facts were not independently established by me, relied upon
        certificates of the Company or its officers or of public officials and as
        to
        questions of fact and law, on opinions or statements by other lawyers reporting
        to me. I have assumed the due execution and delivery, pursuant to due
        authorization, of the Credit Agreement by the Initial Lenders and the
        Agent.

       

      My
        opinions expressed below are limited to the law of the Commonwealth of
        Pennsylvania, and, where applicable, the General Corporation Law of the State
        of
        Delaware and the Federal law of the United States. 

       

      Based
        upon the foregoing and upon such investigation as I have deemed necessary,
        I am
        of the following opinion:

       

      1. 
The
        Company is a corporation duly organized, validly existing and in good standing
        under the laws of the State of Delaware.

       

      2. 
The
        execution, delivery and performance by the Company of the Credit Agreement
        and
        the Notes, and the consummation of the transactions contemplated thereby,
        are
        within the Company's corporate powers, have been duly authorized by all
        necessary corporate action, and do not contravene (i) the Charter or the
        By-laws or (ii) any law, rule or regulation applicable to the Company
        (including, without limitation, Regulation X of the Board of Governors of
        the Federal Reserve System) or (iii) any contractual or legal restriction
        binding on or affecting the Company or, to the best of my knowledge, contained
        in any other similar document, except where such contravention would not
        be
        reasonably likely to have a Material Adverse Effect. The Credit Agreement
        and
        the Revolving Credit Notes of the Company have been duly executed and delivered
        on behalf of the Company.

       

      3. 
No
        authorization, approval or other action by, and no notice to or filing with,
        any
        governmental authority or regulatory body or any other third party is required
        for the due execution, delivery and performance by the Company of the Credit
        Agreement and the Notes, or for the consummation of the transactions
        contemplated thereby, except for the authorizations, approvals, actions,
        notices
        and filings (i) listed on Schedule 4.01(c) to the Credit Agreement, all of
        which have been duly obtained, taken, given or made and are in full force
        and
        effect and (ii) where the Company's failure to receive, take or make such
        authorization, approval, action, notice or filing would not have a Material
        Adverse Effect.

       

      4. 
There
        (i)
        are no pending or, to the best of my knowledge, threatened actions,
        investigations, litigations or proceedings against the Company or any of
        its
        Subsidiaries before any court, governmental agency or arbitrator that (a)
        would
        be reasonably likely to have a Material Adverse Effect (other than the Disclosed
        Litigation) or (b) purport to affect the legality, validity, binding effect
        or
        enforceability of the Credit Agreement or any of the Notes or the consummation
        of the transactions contemplated

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          3

        

      

       

       

                   
        thereby, and (ii) there has been no adverse change in the status, or financial
        effect on the Company and its Subsidiaries taken as a whole, of the
        Disclosed  Litigation from that described on Schedule 3.01(b)
        thereto.

       

      This
        opinion letter may be relied upon by you only in connection with the transaction
        being consummated pursuant to the Credit Agreement and may not be used or
        relied
        upon by any other person for any other purpose.

       

      Very
        truly yours,

       

      

       

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
             

          

        

      

      EXHIBIT
        H
        - FORM OF OPINION OF COUNSEL

      TO
        A
        DESIGNATED SUBSIDIARY

       

                                             
        [Date]

       

      To
        each
        of the Lenders party

      to
        the
        Credit Agreement 

      referred
        to below, 

      and
        to
        Citibank, N.A., as Agent 

      for
        said
        Lenders

       

      Ladies
        and Gentlemen:

       

      In
        my
        capacity as counsel to _____________________ ("Designated
        Subsidiary"),
        I
        have reviewed that certain Credit Agreement, dated as of March 13, 2006 (the
        "Credit
        Agreement"),
        among
        The Hershey Company (the "Company"),
        the
        Lenders party thereto, Citibank, N.A., as administrative agent (the
        "Agent")
        for
        said Lenders, Bank of America, N.A., as syndication agent, UBS Loan Finance
        LLC,
        as documentation agent, and Citigroup Global Markets Inc. and Banc America
        Securities LLC, as joint lead arrangers and joint book managers. Terms defined
        in the Credit Agreement are used herein as therein defined. In connection
        therewith, I have also examined the following documents:

       

      (i) 
The
        Designation Letter (as defined in the Credit Agreement) executed by the
        Designated Subsidiary.

       

      [such
        other documents as counsel may wish to refer to]

       

      I
        have
        also reviewed such matters of law and examined the original, certified,
        conformed or photographic copies of such other documents, records, agreements
        and certificates as I have considered relevant hereto. As to questions of
        fact
        material to such opinions, we have, when relevant facts were not independently
        established by us, relied upon certificates of the Designated Subsidiary
        or of
        its officers or of public officials and as to questions of fact and law,
        on
        opinions or statements by other lawyers reporting to me. I have assumed
        (i) the due execution and delivery, pursuant to due authorization, of each
        of the documents referred to above by all parties thereto other than the
        Designated Subsidiary, (ii) the authenticity of all such documents
        submitted to us as originals and (iii) the conformity to originals of all
        such documents submitted to me as certified, conformed or photographic
        copies.

       

      My
        opinions expressed below are limited to ________________ and the State of
        New
        York.

       

      Based
        upon the foregoing, and upon such investigation as I have deemed necessary,
        I am
        of the following opinion:

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          2

        

      

       

       

      
 

      1. 
The
        Designated Subsidiary (a) is a corporation duly incorporated, validly existing
        and in good standing under the laws of _________________________, (b) is
        duly qualified in each other jurisdiction in which it owns or leases property
        or
        in which the conduct of its business requires it to so qualify or be licensed
        and (c) has all requisite corporate power and authority to own or lease and
        operate its properties and to carry on its business as now conducted and
        as
        proposed to be conducted.

      

      2. 
The
        execution, delivery and performance by the Designated Subsidiary of its
        Designation Letter, the Credit Agreement and its Revolving Credit Notes,
        and the
        consummation of the transactions contemplated thereby, are within the Designated
        Subsidiary's corporate powers, have been duly authorized by all necessary
        corporate action, and do not contravene (i) any provision of the charter or
        by-laws or other constituent documents of the Designated Subsidiary,
        (ii) any law, rule or regulation applicable to the Designated Subsidiary or
        (iii) any contractual or legal obligation or restriction binding on or
        affecting the Designated Subsidiary, except where such contravention would
        not
        be reasonably likely to have a Material Adverse Effect. The Designation Letter
        and each Revolving Credit Note of the Designated Subsidiary has been duly
        executed and delivered on behalf of the Designated Subsidiary.

      

      3. 
The
        Designation Letter of the Designated Subsidiary, the Credit Agreement and
        the
        Revolving Credit Notes of the Designated Subsidiary are, and each other Note
        of
        the Designated Subsidiary when executed and delivered under the Credit Agreement
        will be, legal, valid and binding obligations of the Designated Subsidiary
        enforceable in accordance with their respective terms, except as the
        enforceability thereof may be limited by bankruptcy, insolvency, reorganization
        or moratorium or other similar laws relating to the enforcement of creditors'
        rights generally or by the application of general principles of equity
        (regardless of whether such enforceability is considered in a proceeding
        in
        equity or at law), and except that I express no opinion as to (i) the
        subject matter jurisdiction of the District Courts of the United States of
        America to adjudicate any controversy relating to the Credit Agreement, the
        Designation Letter of the Designated Subsidiary or the Notes of the Designated
        Subsidiary or (ii) the effect of the law of any jurisdiction (other than
        the
        State of New York) wherein any Lender or Applicable Lending Office may be
        located or wherein enforcement of the Credit Agreement, the Designation Letter
        of the Designated Subsidiary or the Notes of the Designated Subsidiary may
        be
        sought which limits rates of interest which may be charged or collected by
        such
        Lender.

      

      4. 
There
        is
        no pending, or to the best of my knowledge, threatened action, investigation,
        litigation or proceeding at law or in equity against the Designated Subsidiary
        before any court, governmental agency or arbitrator that would be reasonably
        likely to have a Material Adverse Effect or that purports to affect the
        legality, validity, binding effect or enforceability of the Designation Letter
        of the Designated Subsidiary, the Credit Agreement or any Revolving Credit
        Note
        of the Designated Subsidiary, or the consummation of the transactions
        contemplated thereby.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          3

        

      

       

       

      
 

      5. 
No
        authorization, approval or other action by, and no notice to or filing with,
        any
        governmental authority or regulatory body or any other third party is required
        for the due execution, delivery and performance by the Designated Subsidiary
        of
        its Designation Letter, the Credit Agreement or the Notes of the Designated
        Subsidiary except for such authorizations, consents, approvals, actions,
        notices
        or filings as have heretofore been made, obtained or affected and are in
        full
        force and effect.

      

      This
        opinion letter may be relied upon by you only in connection with the transaction
        being consummated pursuant to the Credit Agreement and may not be used or
        relied
        upon by any other person for any other purpose.

      

       

      Very
        truly yours,Exhibit 10.9

     

    
      

      

    

    EXHIBIT
      10.9

    

    REGAL-BELOIT
      CORPORATION

    

    AGREEMENT
      FOR STOCK OPTION GRANT

    

    

    Date
      of
      Grant: 

    

    Expiration
      of Grant: 

    

    Employee:
       

    

    

    GRANT
      OF OPTION

    

    Pursuant
      to Section 9 of the REGAL-BELOIT CORPORATION 2003 Equity Incentive Plan, as
      approved on April 22, 2003, REGAL-BELOIT (the “Company”) has granted to
      ______________________ (the “Grantee”), a key employee of the Company, a
      Non-qualified Stock Option to purchase from the Company _____________ shares
      of
      $.01 par value common stock upon the terms and conditions set forth (the
      Grant).

    

    The
      option price per share is ________, which is equal to the fair market value
      closing stock price on ___________________, as reported by the New York Stock
      Exchange. These shares may be paid for in cash, in shares of REGAL-BELOIT Common
      Stock, or in any combination thereof.

     

    

    The
      right
      to exercise this Grant does not become available until two (2) years from the
      date of this Grant or ____________________. The Grant shall vest in _________
      equal annual installments, specifically ________________________.

    

    The
      Grant
      shall terminate the earlier of ten (10) years after the date of Grant or thirty
      (30) days after the Grantee ceases to be an employee of the Company, unless
      terminated for Cause as provided in Section 20 of the 2003 Stock Option
      Plan.

    

    Dated
      this _ day of _____________________ 2005.

    

    

    

    REGAL-BELOIT
      CORPORATION

    

    

    

    

    By:
      __________________________

    President/Chief
      Executive
      Officer

    

    Confirmed:

    

    By:
      _________________________

    

    Date:
      ________________________

    

    
      
        Page
          63 of
          83

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