Document:

Exhibit
      10.2

     

    RECEIVABLES
      PURCHASE AGREEMENT

    

    Dated
      as
      of June 27, 2005

    

    Among

    

    ARCH
      CHEMICALS RECEIVABLES CORP., as Seller,

    

    ARCH
      CHEMICALS, INC., as initial Servicer,

    

    THREE
      PILLARS FUNDING LLC

    

    and

    

    SUNTRUST
      CAPITAL MARKETS, INC., as Administrator

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    TABLE
      OF
      CONTENTS

     

    
      
        
          	 	Page
	 	 
	
                  Article
                    I Purchase Arrangements

                	
                  1

                
	
                  Section
                    1.1

                	
                  Purchase
                    Facility.

                	
                  1

                
	
                  Section
                    1.2

                	
                  Incremental
                    Purchases.

                	
                  2

                
	
                  Section
                    1.3

                	
                  Decreases.

                	
                  2

                
	
                  Section
                    1.4

                	
                  Deemed
                    Collections

                	
                  3

                
	
                  Section
                    1.5

                	
                  Payment
                    Requirements and Computations.

                	
                  3

                
	
                  Article
                    II Payments and Collections

                	
                  4

                
	
                  Section
                    2.1

                	
                  Payments
                    of Recourse Obligations.

                	
                  4

                
	
                  Section
                    2.2

                	
                  Collections
                    Prior to the Facility Termination Date.

                	
                  4

                
	
                  Section
                    2.3

                	
                  Application
                    of Collections After the Facility Termination Date.

                	
                  5

                
	
                  Section
                    2.4

                	
                  Payment
                    Rescission.

                	
                  6

                
	
                  Section
                    2.5

                	
                  Clean
                    Up Call; Reconveyance of Receivable Interests.

                	
                  6

                
	
                  Article
                    III Commercial Paper Funding

                	
                  7

                
	
                  Section
                    3.1

                	
                  CP
                    Costs.

                	
                  7

                
	
                  Section
                    3.2

                	
                  Calculation
                    of CP Costs.

                	
                  7

                
	
                  Section
                    3.3

                	
                  CP
                    Costs Payments.

                	
                  7

                
	
                  Section
                    3.4

                	
                  Default
                    Rate.

                	
                  7

                
	
                  Article
                    IV Liquidity Fundings

                	
                  7

                
	
                  Section
                    4.1

                	
                  Liquidity
                    Fundings.

                	
                  7

                
	
                  Section
                    4.2

                	
                  Yield
                    Payments.

                	
                  8

                
	
                  Section
                    4.3

                	
                  Selection
                    and Continuation of Interest Periods.

                	
                  8

                
	
                  Section
                    4.4

                	
                  Liquidity
                    Funding Yield Rates.

                	
                  8

                
	
                  Section
                    4.5

                	
                  Suspension
                    of the LIBO Rate.

                	
                  8

                
	
                  Section
                    4.6

                	
                  Default
                    Rate.

                	
                  9

                
	
                  Article
                    V Representations and Warranties

                	
                  9

                
	
                  Section
                    5.1

                	
                  Representations
                    and Warranties of the Seller Parties.

                	
                  9

                
	
                  Article
                    VI Conditions of Purchases

                	
                  14

                
	
                  Section
                    6.1

                	
                  Conditions
                    Precedent to Initial Incremental Purchase.

                	
                  14

                
	
                  Section
                    6.2

                	
                  Conditions
                    Precedent to All Purchases and Reinvestments.

                	
                  14

                
	
                  Article
                    VII Covenants

                	
                  15

                
	
                  Section
                    7.1

                	
                  Affirmative
                    Covenants of the Seller Parties.

                	
                  15

                
	
                  Section
                    7.2

                	
                  Negative
                    Covenants of the Seller Parties.

                	
                  23

                
	
                  Article
                    VIII Administration and Collection

                	
                  25

                
	
                  Section
                    8.1

                	
                  Designation
                    of Servicer.

                	
                  25

                
	
                  Section
                    8.2

                	
                  Duties
                    of Servicer.

                	
                  26

                
	
                  Section
                    8.3

                	
                  Collection
                    Notices.

                	
                  27

                
	
                  Section
                    8.4

                	
                  Responsibilities
                    of the Seller.

                	
                  28

                
	
                  Section
                    8.5

                	
                  Receivables
                    Reports.

                	
                  28

                
	
                  Section
                    8.6

                	
                  Servicing
                    Fee.

                	
                  28

                
	
                  Article
                    IX Amortization Events

                	29
	
                  Section
                    9.1

                	
                  Amortization
                    Events.

                	
                  29

                
	
                  Section
                    9.2

                	
                  Remedies.

                	
                  32

                

        

         

        
          
            
            

          

          
            i

            
              

            

          

          
            
            

          

        

        
          	
                  Article
                    X Indemnification

                	
                  32

                
	
                  Section
                    10.1

                	
                  Indemnities
                    by the Seller Parties.

                	
                  32

                
	
                  Section
                    10.2

                	
                  Increased
                    Cost and Reduced Return.

                	
                  35

                
	
                  Section
                    10.3

                	
                  Other
                    Costs and Expenses.

                	
                  35

                
	
                  Section
                    10.4

                	
                  Allocations.

                	
                  36

                
	
                  Article
                    XI The Administrator

                	
                  36

                
	
                  Section
                    11.1

                	
                  Authorization
                    and Action.

                	
                  36

                
	
                  Section
                    11.2

                	
                  STCM,
                    SunTrust Bank and Affiliates.

                	
                  36

                
	
                  Article
                    XII Assignments and Participations

                	
                  37

                
	
                  Section
                    12.1

                	
                  Assignments
                    and Participations by TPF.

                	
                  37

                
	
                  Section
                    12.2

                	
                  Prohibition
                    on Assignments by the Seller Parties.

                	
                  37

                
	
                  Article
                    XIII Miscellaneous

                	
                  37

                
	
                  Section
                    13.1

                	
                  Waivers
                    and Amendments.

                	
                  37

                
	
                  Section
                    13.2

                	
                  Notices.

                	
                  37

                
	
                  Section
                    13.3

                	
                  Protection
                    of Administrator’s Security Interest.

                	
                  38

                
	
                  Section
                    13.4

                	
                  Confidentiality.

                	
                  39

                
	
                  Section
                    13.5

                	
                  Bankruptcy
                    Petition.

                	
                  40

                
	
                  Section
                    13.6

                	
                  Limitation
                    of Liability.

                	
                  40

                
	
                  Section
                    13.7

                	No recourse
                  against
                  TPF	
                  40

                
	
                  Section
                    13.8

                	Limitation
                  on
                  Payments 	
                  40

                
	
                  Section
                    13.9

                	
                  CHOICE
                    OF LAW.

                	
                  41

                
	
                  Section
                    13.10

                	
                  CONSENT
                    TO JURISDICTION.

                	
                  41

                
	
                  Section
                    13.11

                	
                  WAIVER
                    OF JURY TRIAL.

                	
                  42

                
	
                  Section
                    13.12

                	
                  Integration;
                    Binding Effect; Survival of Terms.

                	
                  42

                
	
                  Section
                    13.13

                	
                  Counterparts;
                    Severability; Section References.

                	
                  42

                
	
                  Section
                    13.14

                	
                  Characterization.

                	
                  43

                

        

      

    

     

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    

      
        	Exhibits 	 
	 	 
	
                Exhibit
                  I

              	
                Definitions

              
	 	 
	
                Exhibit
                  II

              	
                Form
                  of Purchase Notice

              
	 	 
	
                Exhibit
                  III

              	
                Jurisdiction
                  of Organization of the Seller Parties; Places of Business of the

                  Seller
                    Parties; Locations of Records; Federal Employer Identification

                    Number(s)

                  

                

              
	 	 
	
                Exhibit
                  IV

              	
                Names
                  of Collection Banks; Lock-Boxes and Collection Accounts

              
	 	 
	
                Exhibit
                  V

              	
                Form
                  of Compliance Certificate

              
	 	 
	
                Exhibit
                  VI

              	
                [Intentionally
                  Deleted]

              
	 	 
	
                Exhibit
                  VII

              	
                Credit
                  and Collection Policy

              
	 	 
	
                Exhibit
                  VIII

              	
                Form
                  of Monthly Report

              
	 	 
	
                Exhibit
                  IX

              	
                Form
                  of Collateral Certificate

              
	 	 
	 	 
	Schedules	 
	 	 
	
                Schedule
                  A

              	
                Documents
                  to be Delivered to the Administrator on or Prior to the Initial
                  Purchase

              

      

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

        
        

      

    

    RECEIVABLES
      PURCHASE AGREEMENT

    

    THIS
      RECEIVABLES PURCHASE AGREEMENT,
      dated as
      of June 27, 2005, is entered into by and among:

     

    (a) Arch
      Chemicals Receivables Corp., a Delaware corporation (the “Seller”),

     

    (b) Arch
      Chemicals, Inc., a Virginia corporation (“Arch”
      or the
“Servicer”),
      as
      initial Servicer (the Servicer together with the Seller, the “Seller
      Parties”
      and
      each, a “Seller
      Party”),

     

    (c) Three
      Pillars Funding LLC, a Delaware limited liability company (“TPF”),
      and

     

    (d) SunTrust
      Capital Markets, Inc., a Tennessee corporation (“STCM”),
      as
      agent and administrator for TPF and its assigns under the Transaction Documents
      (together with its successors and assigns in such capacity, the “Administrator”).

     

    Unless
      defined elsewhere herein, capitalized terms used in this Agreement shall have
      the meanings assigned to such terms in Exhibit
      I.

     

    PRELIMINARY
      STATEMENTS

    

    The
      Seller desires to transfer and assign Receivable Interests from time to
      time.

     

    TPF
      shall
      purchase Receivable Interests from the Seller from time to time either by
      issuing its Commercial Paper or by availing itself of a Liquidity Funding to
      the
      extent available.

     

    STCM
      has
      been requested and is willing to act as agent and administrator on behalf of
      TPF
      and its assigns in accordance with the terms hereof.

     

    Article
      I  

     

    Purchase
      Arrangements

     

    Section
      1.1  Purchase
      Facility.

     

    (a)  Upon
      the
      terms and subject to the conditions of this Agreement (including, without
      limitation, Article
      VI),
      from
      time to time prior to the Facility Termination Date, the Seller may request
      that
      TPF purchase from the Seller undivided ownership interests in the Receivables
      and the associated Related Security and Collections, and TPF shall make such
      Purchase; provided that
      no
      Purchase shall be made by TPF if, after giving effect thereto, the Aggregate
      Invested Amount would exceed the Purchase Limit. It is the intent of TPF to
      fund
      the Purchases by the issuance of Commercial Paper. If for any reason TPF is
      unable, or determines that it is undesirable, to issue Commercial Paper to
      fund
      or maintain its investment in the Receivable Interests, or is unable for any
      reason to repay such Commercial Paper upon the maturity thereof, TPF will avail
      itself of a Liquidity Funding to the extent available. If TPF funds or
      refinances its investment in a Receivable Interest through a Liquidity Funding,
      in lieu of paying CP Costs on the Invested Amount pursuant to Article
      III
      hereof,
      the Seller will pay Yield thereon at the Alternate Base Rate or the LIBO Rate,
      selected in accordance with Article
      IV
      hereof.
      Nothing herein shall be deemed to constitute a commitment of TPF to issue
      Commercial Paper.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    (b)  The
      Seller may, upon at least ten (10) Business Days’ notice to the Administrator,
      terminate in whole or reduce in part, the unused portion of the Purchase Limit;
      provided that
      each
      partial reduction of the Purchase Limit shall be in an amount equal to
      $5,000,000 (or a larger integral multiple of $1,000,000 if in excess
      thereof).

     

    (c)  The
      Administrator hereby represents that (i) pursuant to the Liquidity Agreement,
      TPF has obtained a Liquidity Commitment from SunTrust Bank and its assigns
      for
      an initial period of 364 days in an amount equal to 102% of the greater of
      (A)
      the Purchase Limit from time to time in effect hereunder, and (B) the Aggregate
      Invested Amount outstanding from time to time hereunder, and (ii) while SunTrust
      Bank may not be obligated to pay par for a Receivable Interest that is
      transferred to it pursuant to the Liquidity Agreement, the only condition
      precedent to its obligation to pay the agreed-upon price thereunder is the
      absence of an Event of Bankruptcy with respect to TPF. 

     

    Section
      1.2  Incremental
      Purchases.

     

    The
      Seller shall provide the Administrator with at least two (2) Business Days’
      prior written notice in a form set forth as Exhibit
      II
      hereto
      of each Incremental Purchase (each, a “Purchase
      Notice”).
      Each
      Purchase Notice shall be subject to Section
      6.2
      hereof
      and, except as set forth below, shall be irrevocable and shall specify the
      requested Purchase Price (which shall not be less than $1,000,000 or a larger
      integral multiple of $100,000) and the Purchase Date. The Seller shall not
      request and TPF shall not be obligated to fund more than one (1) Incremental
      Purchase in any consecutive seven (7) day period. Following receipt of a
      Purchase Notice, the Administrator will determine whether TPF will fund the
      requested Incremental Purchase through the issuance of Commercial Paper or
      through a Liquidity Funding. If TPF determines to fund an Incremental Purchase
      through a Liquidity Funding, the Seller may cancel the Purchase Notice or,
      in
      the absence of such a cancellation, the Incremental Purchase will be funded
      through a Liquidity Funding. On each Purchase Date, upon satisfaction of the
      applicable conditions precedent set forth in Article
      VI,
      TPF
      shall deposit to the Facility Account, in immediately available funds, no later
      than 2:00 p.m. (New York time), an amount equal to the requested Purchase
      Price.

     

    Section
      1.3  Decreases.

     

    The
      Seller shall provide the Administrator with prior written notice in conformity
      with the Required Notice Period (a “Reduction
      Notice”)
      of any
      proposed reduction of Aggregate Invested Amount. Such Reduction Notice shall
      designate (a)
      the date
      (the “Proposed
      Reduction Date”)
      upon
      which any such reduction of Aggregate Invested Amount shall occur (which date
      shall give effect to the applicable Required Notice Period), and (b)
      the
      amount of Aggregate Invested Amount to be reduced which shall be applied ratably
      to all Receivable Interests in accordance with the respective Invested Amounts
      thereof (the “Aggregate
      Reduction”).
      Only
      one (1) Reduction Notice shall be outstanding at any time.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    Section
      1.4  Deemed
      Collections. If
      on any
      day:

     

    (i)  the
      Outstanding Balance of any Receivable is reduced or cancelled as a result of
      any
      defective or rejected goods or services, any cash discount or any other
      adjustment by any Originator or any Affiliate thereof, or as a result of any
      governmental or regulatory action, or

     

    (ii)  the
      Outstanding Balance of any Receivable is reduced or canceled as a result of
      a
      setoff in respect of any claim by the Obligor thereof (whether such claim arises
      out of the same or a related or an unrelated transaction), or

     

    (iii)  the
      Outstanding Balance of any Receivable is reduced on account of the obligation
      of
      any Originator or any Affiliate thereof to pay to the related Obligor any rebate
      or refund, or

     

    (iv)  the
      Outstanding Balance of any Receivable is less than the amount included in
      calculating the Net Pool Balance for purposes of any Monthly Report or
      Collateral Certificate (for any reason other than receipt of Collections or
      such
      Receivable becoming a Defaulted Receivable), or

     

    (v)  any
      of
      the representations or warranties of the Seller set forth in Section
      5.1(g),
      Section
      5.1(i),
      Section
      5.1(j),
      Section
      5.1(r),
      Section
      5.1(s),
      Section
      5.1(t)
      or
Section
      5.1(u)
      were not
      true when made with respect to any Receivable,

     

    then,
      on
      such day, the Seller shall be deemed to have received a Collection of such
      Receivable (A)
      in the
      case of clauses
      (i)-(iv)
      above,
      in the amount of such reduction or cancellation or the difference between the
      actual Outstanding Balance and the amount included in calculating such Net
      Pool
      Balance, as applicable; and (B)
      in the
      case of clause
      (v)
      above,
      in the amount of the Outstanding Balance of such Receivable and (in either
      case), not later than two
      (2) Business
      Days thereafter
      shall pay to the Administrator’s Account TPF’s Portion of any such Collection
      deemed to have been received in the same manner as actual cash collections
      are
      distributed under the terms of this Agreement.

     

    Section
      1.5  Payment
      Requirements and Computations.

     

    All
      amounts to be paid or deposited by a Seller Party pursuant to any provision
      of
      this Agreement shall be paid or deposited in accordance with the terms hereof
      no
      later than 12:00 noon (New York time) on the day when due in immediately
      available funds, and if not received before 12:00 noon (New York time) shall
      be
      deemed to be received on the next succeeding Business Day. If such amounts
      are
      payable to the Administrator for the account of TPF, they shall be paid to
      the
      Administrator’s Account, for the account of TPF until otherwise notified by the
      Administrator. Upon notice to the Seller, the Administrator may debit the
      Facility Account for all amounts due and payable hereunder. All computations
      of
      CP Costs, Yield, per annum
      fees
      calculated as part of any CP Costs, per annum
      fees
      hereunder and per annum
      fees
      under the Fee Letter shall be made on the basis of a year of 360 days for the
      actual number of days elapsed. If any amount hereunder shall be payable on
      a day
      which is not a Business Day, such amount shall be payable on the next succeeding
      Business Day.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    Article
      II  

     

    Payments
      and Collections

     

    Section
      2.1  Payments
      of Recourse Obligations.

     

    The
      Seller hereby promises to pay the following (collectively, the “Recourse
      Obligations”):

     

    (a)  all
      amounts due and owing under Section
      1.3
      or
Section
      1.4
      or in
      order to avoid an Amortization Event under Section 9.1(m) or 9.1(q) on the
      dates
      specified therein;

     

    (b)  the
      fees
      set forth in the Fee Letter on the dates specified therein;

     

    (c)  all
      accrued and unpaid Yield on the Receivable Interests accruing Yield at the
      Alternate Base Rate or the Default Rate on each Settlement Date applicable
      thereto;

     

    (d)  all
      accrued and unpaid Yield on the Receivable Interests accruing Yield at the
      LIBO
      Rate on the last day of each Interest Period applicable thereto;

     

    (e)  all
      accrued and unpaid CP Costs on the Receivable Interests funded with Commercial
      Paper on each Settlement Date; and

     

    (f)  all
      Broken Funding Costs and Indemnified Amounts upon demand.

     

    Section
      2.2  Collections
      Prior to the Facility Termination Date.

     

    (a)  Prior
      to
      the Facility Termination Date, TPF’s Portion of any Deemed Collections received
      by the Servicer and TPF’s Portion of any Collections received by the Servicer
      shall be set aside and held in trust by the Servicer for the payment of any
      accrued and unpaid Aggregate Unpaids or for a Reinvestment as provided in this
      Section
      2.2.
      If at
      any time any Collections are received by the Servicer prior to the Facility
      Termination Date, the Seller hereby requests and TPF hereby agrees to make,
      simultaneously with such receipt, a reinvestment by payment of the Purchase
      Price under the Receivables Sale Agreement (each, a “Reinvestment”)
      with
      TPF’s Portion of the balance of each and every Collection received by the
      Servicer such that after giving effect to such Reinvestment, the Invested Amount
      of such Receivable Interest immediately after such receipt and corresponding
      Reinvestment shall be equal to the amount of Invested Amount immediately prior
      to such receipt.

     

    (b)  On
      each
      day on which any of the conditions precedent set forth in Section
      6.2
      are not
      satisfied and on each Settlement Date prior to the Facility Termination Date,
      the Servicer shall remit to the Administrator’s Account the amounts set aside
      during the preceding Settlement Period that have not been subject to a
      Reinvestment and apply such amounts (if not previously paid in accordance with
      Section
      2.1)
      to the
      Aggregate Unpaids in the order specified:

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    first,
      ratably
      to the payment of all accrued and unpaid CP Costs, Yield and Broken Funding
      Costs (if any) that are then due and owing,

     

    second,
      to the
      accrued and unpaid Servicing Fee,

     

    third,
      ratably
      to the payment of all accrued and unpaid fees under the Fee Letter (if any)
      that
      are then due and owing,

     

    fourth,
      if
      required under Section
      1.3
      or
Section
      1.4
      or in
      order to avoid an Amortization Event or Unmatured Amortization Event under
      Section 9.1(m) or Section 9.1(q), to the ratable reduction of Aggregate Invested
      Amount,

     

    fifth,
      for the
      ratable payment of all other unpaid Recourse Obligations, if any, that are
      then
      due and owing, and

     

    sixth,
      the
      balance, if any, to the Seller or otherwise in accordance with the Seller’s
      instructions.

     

    (c)  Prior
      to
      the Facility Termination Date, any Deemed Collections or Collections received
      by
      the Servicer that do not constitute TPF’s Portion of such Deemed Collections or
      Collections shall be paid to the Seller.

     

    (d)  In
      the
      event that a Collection Notice has been delivered pursuant to any Collection
      Account Agreement, all amounts received in any Collection Account shall at
      the
      sole discretion of the Administrator, either (i) be retained in such Collection
      Account or other account of the Administrator for such day, Settlement Period
      or
      part thereof and applied on the Settlement Date in accordance with the terms
      of
      this Agreement or (ii) be released to the Seller and applied in accordance
      with
      the terms of this Agreement.

     

    Section
      2.3  Application
      of Collections After the Facility Termination Date.

     

    (a)  On
      the
      Facility Termination Date and on each day thereafter, the Servicer shall set
      aside and hold in trust, for the benefit of the Secured Parties, all Collections
      received on each such day. On and after the Facility Termination Date, the
      Servicer shall, on each Settlement Date and on each other Business Day specified
      by the Administrator: (i)
      remit to
      the Administrator’s Account the amounts set aside pursuant to the preceding
      sentence, and (ii)
      apply
      such amounts to reduce the Aggregate Unpaids as follows:

     

    first,
      to the
      reimbursement of the Administrator’s costs of collection and enforcement of this
      Agreement,

     

    second,
      ratably
      to the payment of all accrued and unpaid CP Costs, Yield and Broken Funding
      Costs,

     

    third,
      to the
      accrued and unpaid Servicing Fee,

     

    fourth,
      ratably
      to the payment of all accrued and unpaid fees under the Fee Letter,

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    fifth,
      to the
      ratable reduction of Aggregate Invested Amount,

     

    sixth,
      for the
      ratable payment of all other Aggregate Unpaids, and

     

    seventh,
      to the
      Seller.

     

    Section
      2.4  Payment
      Rescission.

     

    No
      payment of any of the Aggregate Unpaids shall be considered paid or applied
      hereunder to the extent that, at any time, all or any portion of such payment
      or
      application is rescinded by application of law or judicial authority, or must
      otherwise be returned or refunded for any reason. The Seller shall remain
      obligated for the amount of any payment or application so rescinded, returned
      or
      refunded, and shall promptly pay to the Administrator (for application to the
      Person or Persons who suffered such rescission, return or refund) the full
      amount thereof, plus interest thereon at the Default Rate from the date of
      any
      such rescission, return or refunding.

     

    Section
      2.5  Clean
      Up Call; Reconveyance of Receivable Interests.

     

    (a)  The
      Servicer (so long as the Servicer is an Affiliate of the Seller) shall have
      the
      right (after providing written notice to the Administrator in accordance with
      the Required Notice Period), at any time following the reduction of the
      Aggregate Invested Amount to a level that is less than 10.0% of the highest
      Aggregate Invested Amount outstanding during the term of this Agreement, to
      repurchase all, but not less than all, of the then outstanding Receivable
      Interests. The purchase price in respect thereof shall be an amount equal to
      the
      Aggregate Unpaids through the date of such repurchase, payable in immediately
      available funds to the Administrator’s Account. Such repurchase shall be made
      free and clear of any Adverse Claim created by the Administrator but otherwise
      shall be without representation, warranty or recourse of any kind by, on the
      part of, or against TPF or the Administrator.

     

    (b)  On
      the
      Final Payout Date, the Administrator on behalf of the Secured Parties shall
      be
      considered to have reconveyed free and clear of any Adverse Claim created by
      the
      Administrator (but otherwise shall be without representation, warranty or
      recourse of any kind by, on the part of, or against the Secured Parties or
      the
      Administrator) to the Seller all of the Administrator’s (on behalf of the
      Secured Parties) right, title and interest in, to and under the Receivables,
      Related Security and Collections with respect thereto and shall at the request,
      and sole cost and expense, of the Seller, execute and deliver to the Seller,
      all
      such documents or instruments as are necessary to terminate the Administrator’s
      interest on behalf of the Purchasers in the Receivables, Related Security and
      Collections with respect thereto

     

    
      
        
        

      

      
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    Article
      III  

     

    Commercial
      Paper Funding

     

    Section
      3.1  CP
      Costs.

     

    The
      Seller shall pay CP Costs with respect to the Invested Amount of all Receivable
      Interests funded through the issuance of Commercial Paper. Each Receivable
      Interest that is funded substantially with Pooled Commercial Paper will accrue
      CP Costs each day on a pro rata basis, based upon the percentage share that
      the
      Invested Amount in respect of such Receivable Interest represents in relation
      to
      all assets held by TPF and funded substantially with related Pooled Commercial
      Paper.

     

    Section
      3.2  Calculation
      of CP Costs.

     

    Not
      later
      than the third Business Day immediately preceding each Monthly Reporting Date,
      TPF shall calculate the aggregate amount of CP Costs applicable to its
      Receivable Interests for the Calculation Period then most recently ended and
      shall notify the Seller of such aggregate amount.

     

    Section
      3.3  CP
      Costs Payments. 

     

    On
      each
      Settlement Date, the Seller shall pay to the Administrator (for the benefit
      of
      TPF) an aggregate amount equal to all accrued and unpaid CP Costs in respect
      of
      the Invested Amount of all Receivable Interests funded with Commercial Paper
      for
      the Calculation Period then most recently ended in accordance with Article
      II.

     

    Section
      3.4  Default
      Rate. 

     

    From
      and
      after the occurrence of an Amortization Event, all Receivable Interests funded
      through the issuance of Commercial Paper shall accrue CP Costs at the Default
      Rate.

     

    Article
      IV  

     

    Liquidity
      Fundings

     

    Section
      4.1  Liquidity
      Fundings.

     

    Prior
      to
      the occurrence of an Amortization Event, the outstanding Invested Amount of
      each
      Receivable Interest funded with a Liquidity Funding shall accrue Yield for
      each
      day during its Interest Period at either the LIBO Rate or the Alternate Base
      Rate in accordance with the terms and conditions hereof. Until the Seller gives
      the required notice to the Administrator of another Yield Rate in accordance
      with Section
      4.4,
      the
      initial Yield Rate for any Receivable Interest funded with a Liquidity Funding
      shall be the Alternate Base Rate (unless the Default Rate is then applicable).
      If any undivided interest in a Receivable Interest initially funded with
      Commercial Paper is sold to the Liquidity Banks pursuant to the Liquidity
      Agreement, such undivided interest in such Receivable Interest shall be deemed
      to have an Interest Period commencing on the date of such sale.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    Section
      4.2  Yield
      Payments.

     

    On
      the
      Settlement Date for each Receivable Interest that is funded with a Liquidity
      Funding, the Seller shall pay to the Administrator (for the benefit of the
      Liquidity Banks) an aggregate amount equal to the accrued and unpaid Yield
      thereon for the entire Interest Period of each such Liquidity Funding in
      accordance with Article
      II.

     

    Section
      4.3  Selection
      and Continuation of Interest Periods.

     

    (a)  With
      consultation from (and approval by) the Administrator, the Seller shall from
      time to time request Interest Periods for the Receivable Interests funded with
      Liquidity Fundings, provided that
      if at
      any time any Liquidity Funding is outstanding, the Seller shall always request
      Interest Periods such that at least one Interest Period shall end on the date
      specified in clause
      (i)
      of the
      definition of Settlement Date.

     

    (b)  The
      Seller or the Administrator, upon notice to and consent by the other received
      at
      least three (3) Business Days prior to the end of an Interest Period (the
“Terminating
      Tranche”)
      for
      any Liquidity Funding, may, effective on the last day of the Terminating
      Tranche: (i)
      divide
      any such Liquidity Funding into multiple Liquidity Fundings, (ii)
      combine
      any such Liquidity Funding with one or more other Liquidity Fundings that have
      a
      Terminating Tranche ending on the same day as such Terminating Tranche or
(iii)
      combine
      any such Liquidity Funding with a new Liquidity Funding to be made by the
      Liquidity Banks on the day such Terminating Tranche ends.

     

    Section
      4.4  Liquidity
      Funding Yield Rates.

     

    The
      Seller may select the LIBO Rate (subject to Section
      4.5
      below)
      or the Alternate Base Rate for each Liquidity Funding. The Seller shall by
      12:00
      noon (New York time): (a)
      at least
      three (3) Business Days prior to the expiration of any Terminating Tranche
      with
      respect to which the LIBO Rate is being requested as a new Yield Rate and
(b)
      at least
      one (1) Business Day prior to the expiration of any Terminating Tranche with
      respect to which the Alternate Base Rate is being requested as a new Yield
      Rate,
      give the Administrator irrevocable notice of the new Yield Rate for the
      Liquidity Funding associated with such Terminating Tranche. Until the Seller
      gives notice to the Administrator of another Yield Rate, the initial Yield
      Rate
      for any Receivable Interest assigned or participated to the Liquidity Banks
      pursuant to the Liquidity Agreement shall be the Alternate Base Rate (unless
      the
      Default Rate is then applicable).

     

    Section
      4.5  Suspension
      of the LIBO Rate.

     

    (a)  If
      any
      Liquidity Bank notifies the Administrator that it has determined that funding
      its ratable share of the Liquidity Fundings at a LIBO Rate would violate any
      applicable law, rule, regulation, or directive of any governmental or regulatory
      authority, whether or not having the force of law, or that (i)
      deposits
      of a type and maturity appropriate to match fund its Liquidity Funding at such
      LIBO Rate are not available or (ii)
      such
      LIBO Rate does not accurately reflect the cost of acquiring or maintaining
      a
      Liquidity Funding at such LIBO Rate, then the Administrator will promptly notify
      the Seller Parties and the Administrator shall suspend the availability of
      such
      LIBO Rate and require the Seller to select the Alternate Base Rate for any
      Liquidity Funding accruing Yield at such LIBO Rate; provided,
      however,
      the
      failure to so notify any Seller Party shall not result in the non-suspension
      of
      the availability of such LIBO Rate.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (b)  If
      less
      than all of the Liquidity Banks give a notice to the Administrator pursuant
      to
Section
      4.5(a),
      each
      Liquidity Bank which gave such a notice shall be obliged, at the request of
      the
      Seller, TPF or the Administrator, to assign all of its rights and obligations
      hereunder to (i)
      another
      Liquidity Bank or (ii)
      another
      funding entity nominated by the Seller or the Administrator that is an Eligible
      Assignee willing to participate in the Liquidity Agreement through the Liquidity
      Termination Date in the place of such notifying Liquidity Bank; provided that (A)
      the
      notifying Liquidity Bank receives payment in full of all Aggregate Unpaids
      owing
      to it (whether due or accrued), and (B)
      the
      replacement Liquidity Bank otherwise satisfies the requirements of the Liquidity
      Agreement.

     

    (c)  Upon
      the
      occurrence of any event giving rise to the operation of Section 4.5(a)
      with
      respect to any Liquidity Bank, it will, if requested by the Seller, to the
      extent permissible under applicable law, endeavor in good faith to change the
      funding office at which it books its ratable share of any Liquidity Funding
      accruing Yield at a LIBO Rate hereunder if such change would make it lawful
      for
      such Liquidity Bank to fund such Liquidity Funding at a LIBO Rate; provided,
      however,
      that
      such change may be made in such manner that such Liquidity Bank, in its sole
      determination, suffers no unreimbursed cost or expense or any disadvantage
      whatsoever.

     

    Section
      4.6  Default
      Rate.

     

    From
      and
      after the occurrence of an Amortization Event, all Liquidity Fundings shall
      accrue Yield at the Default Rate.

     

    Article
      V  

     

    Representations
      and Warranties

     

    Section
      5.1  Representations
      and Warranties of the Seller Parties.

     

    Each
      Seller Party hereby represents and warrants to the Administrator and TPF, as
      to
      itself, as of the date hereof and as of the date of each Incremental Purchase
      and the date of each Reinvestment that:

     

    (a)  Existence
      and Power.
      Such
      Seller Party’s jurisdiction of organization is correctly set forth in the
      preamble to this Agreement and such jurisdiction is its sole jurisdiction of
      organization. Such Seller Party is duly organized under the laws of its
      jurisdiction of organization and is a “registered organization” as defined in
      the UCC in effect in such jurisdiction. Such Seller Party is validly existing
      and in good standing under the laws of its jurisdiction of organization and
      no
      other state or jurisdiction,
      and
      such jurisdiction must maintain a public record showing the organization to
      have
      been organized. Such Seller Party is duly qualified to do business and is in
      good standing as a foreign entity, and has and holds all organizational power
      and all governmental licenses, authorizations, consents and approvals required
      to carry on its business in each jurisdiction in which its business is conducted
      except where the failure to so qualify or so hold could not reasonably be
      expected to have a Material Adverse Effect.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (b)  Power
      and Authority; Due Authorization, Execution and Delivery.
      The
      execution and delivery by such Seller Party of this Agreement and each other
      Transaction Document to which it is a party, and the performance of its
      obligations hereunder and thereunder and, in the case of the Seller, the
      Seller’s use of the proceeds of Purchases made hereunder, are within its
      corporate powers and authority and have been duly authorized by all necessary
      corporate action on its part. This Agreement and each other Transaction Document
      to which such Seller Party is a party has been duly executed and delivered
      by
      such Seller Party.

     

    (c)  No
      Conflict.
      The
      execution and delivery by such Seller Party of this Agreement and each other
      Transaction Document to which it is a party, and the performance of its
      obligations hereunder and thereunder do not contravene or violate (i)
      its
      Organizational Documents, (ii)
      any law,
      rule or regulation applicable to it, (iii)
      any
      restrictions under any agreement, contract or instrument to which it is a party
      or by which it or any of its property is bound, or (iv)
      any
      order, writ, judgment, award, injunction or decree binding on or affecting
      it or
      its property, and do not result in the creation or imposition of any Adverse
      Claim on assets of such Seller Party or its Subsidiaries (except as created
      hereunder) except, in any case, where such contravention or violation could
      not
      reasonably be expected to have a Material Adverse Effect; and no transaction
      contemplated hereby requires compliance with any bulk sales act or similar
      law.

     

    (d)  Governmental
      Authorization.
      Other
      than the filing of the financing statements required hereunder, no authorization
      or approval or other action by, and no notice to or filing with, any
      governmental authority or regulatory body is required for the due execution
      and
      delivery by such Seller Party of this Agreement and each other Transaction
      Document to which it is a party and the performance of its obligations hereunder
      and thereunder.

     

    (e)  Actions,
      Suits.
      There
      are no actions, suits or proceedings pending, or to the best of such Seller
      Party’s knowledge, threatened, against it, or any of its properties, in or
      before any court, arbitrator or other body, that could reasonably be expected
      to
      have a Material Adverse Effect. Such Seller Party is not in default with respect
      to any order of any court, arbitrator or governmental body which default could
      reasonably be expected to have a Material Adverse Effect.

     

    (f)  Binding
      Effect.
      This
      Agreement and each other Transaction Document to which such Seller Party is
      a
      party constitute the legal, valid and binding obligations of such Seller Party
      enforceable against such Seller Party in accordance with their respective terms,
      except as such enforcement may be limited by applicable bankruptcy, insolvency,
      reorganization or other similar laws relating to or limiting creditors’ rights
      generally and by general principles of equity (regardless of whether enforcement
      is sought in a proceeding in equity or at law).

     

    
      
        
        

      

      
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    (g)  Accuracy
      of Information.
      All
      information (other than any projection or other forward-looking information)
      heretofore furnished by such Seller Party or any of its Affiliates to the
      Administrator or TPF for purposes of or in connection with this Agreement,
      any
      of the other Transaction Documents or any transaction contemplated hereby or
      thereby is, and all such information (other than any projection or other
      forward-looking information) hereafter furnished by such Seller Party or any
      of
      its Affiliates to the Administrator or TPF will be, true and accurate in every
      material respect on the date such information is stated or certified and does
      not and will not contain any material misstatement of fact.

     

    (h)  Use
      of
      Proceeds.
      No
      proceeds of any Purchase hereunder will be used by such Seller Party
(i)
      for a
      purpose that violates, or would be inconsistent with, (A) Section
      7.2(e)
      of this
      Agreement or (B)
      Regulation T, U or X promulgated by the Board of Governors of the Federal
      Reserve System from time to time or (ii)
      to
      acquire any security in any transaction which is subject to Section 12, 13
      or 14
      of the Securities Exchange Act of 1934, as amended other than the repurchase
      of
      equity securities of Arch so long as such repurchase does not violate Sections
      12, 13 or 14 of the Securities Exchange Act of 1934, as amended.

     

    (i)  Good
      Title.
      The
      Seller is (i) the legal and beneficial owner of the Receivables and (ii) is
      the
      legal and beneficial owner of the Related Security with respect thereto, free
      and clear of any Adverse Claim, except as created by the Transaction Documents.
      There have been duly filed all financing statements or other similar instruments
      or documents necessary under the UCC (or any comparable law) of all appropriate
      jurisdictions to perfect the Seller’s ownership interest in each Receivable, its
      Collections, “Supporting
      Obligations” (as defined in Article 9 of the UCC in effect in each relevant
      jurisdiction), the Seller’s right, title and interest in, to and under each of
      the Transaction Documents to which it is a party, returned goods the sale of
      which gave rise to any Receivable, security interests in favor of the Seller
      that secures payment of such Receivable and all other items of Related Security
      in which an interest therein may be perfected by the filing of a financing
      statement under Article 9 of the UCC and proceeds of the foregoing.

     

    (j)  Perfection.
      This
      Agreement is effective to create a valid security interest in favor of the
      Administrator for the benefit of the Secured Parties in the Purchased Assets
      to
      secure payment of the Aggregate Unpaids, free and clear of any Adverse Claim
      except as created by the Transactions Documents. There have been duly filed
      all
      financing statements or other similar instruments or documents necessary under
      the UCC (or any comparable law) of all appropriate jurisdictions to perfect
      the
      Administrator’s (on behalf of the Secured Parties) security interest in the
      Receivables, its Collections, “Supporting Obligations” (as defined in Article 9
      of the UCC in effect in each relevant jurisdiction), the Seller’s right, title
      and interest in, to and under each of the Transaction Documents to which it
      is a
      party, returned goods the sale of which gave rise to any Receivable, security
      interests in favor of the Seller that secures payment of such Receivable and
      all
      other items of Related Security in which an interest therein may be perfected
      by
      the filing of a financing statement under Article 9 of the UCC and proceeds
      of
      the foregoing. Such Seller Party’s jurisdiction of organization is a
      jurisdiction whose law generally requires information concerning the existence
      of a nonpossessory security interest to be made generally available in a filing,
      record or registration system as a condition or result of such a security
      interest’s obtaining priority over the rights of a lien creditor which respect
      to collateral.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (k)  Places
      of Business and Locations of Records.
      The
      jurisdiction of organization, principal places of business and chief executive
      office of such Seller Party and the offices where it keeps all of its Records
      are located at the address(es) listed on Exhibit
      III
      or such
      other locations of which the Administrator has been notified in accordance
      with
Section
      7.2(a)
      in
      jurisdictions where all action required by Section
      13.3(a)
      has been
      taken and completed. The Seller’s Federal Employer Identification Number is
      correctly set forth on Exhibit
      III.

     

    (l)  Collections.
      The
      conditions and requirements set forth in subclause (i) of Section
      7.1(j)
      and
Section
      8.2
      have at
      all times since the Closing Date, been satisfied and duly performed. The
      conditions and requirements set forth in subclause (ii) of Section
      7.1(j)
      have
      been satisfied from and after the Closing Date. The names, addresses and
      jurisdictions of organization of all Collection Banks, together with the account
      numbers of the Collection Accounts of the Seller at each Collection Bank and
      the
      post office box number of each Lock-Box, are listed on Exhibit
      IV.
      The
      Seller has not granted any Person, other than the Administrator as contemplated
      by this Agreement, dominion and control of any Lock-Box or Collection Account,
      or the right to take dominion and control of any such Lock-Box or Collection
      Account at a future time or upon the occurrence of a future event.

     

    (m)  Material
      Adverse Effect.
      (i)
      The
      initial Servicer represents and warrants that since March 31, 2005, no event
      has
      occurred that would have a material adverse effect on the financial condition
      or
      operations of the initial Servicer and its Subsidiaries taken as a whole or
      the
      ability of the initial Servicer to perform its obligations under this Agreement,
      and (ii)
      the
      Seller represents and warrants that since March 31, 2005, no event has occurred
      that would have a material adverse effect on (A)
      the
      financial condition or operations of the Seller, (B)
      the
      ability of the Seller to perform its obligations under the Transaction
      Documents, or (C)
      the
      collectibility of the Receivables generally or any material portion of the
      Receivables.

     

    (n)  Names.
      The
      name in which the Seller has executed this Agreement is identical to the name
      of
      the Seller as indicated on the public record of its state of organization which
      shows the Seller to have been organized.
      In the
      past five (5) years, the Seller has not used any corporate names, trade names
      or
      assumed names other than the name in which it has executed this
      Agreement.

     

    (o)  Ownership
      of the Seller.
      Arch
      owns, directly or indirectly, 100% of the issued and outstanding capital stock
      of the Seller, free and clear of any Adverse Claim. Such capital stock is
      validly issued, fully paid and nonassessable, and there are no options, warrants
      or other rights to acquire securities of the Seller.

     

    
      
        
        

      

      
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    (p)  Not
      a
      Holding Company or an Investment Company.
      Such
      Seller Party is not a “holding company” or a “subsidiary holding company” of a
“holding company” within the meaning of the Public Utility Holding Company Act
      of 1935, as amended, or any successor statute. Such Seller Party is not an
      “investment company” within the meaning of the Investment Company Act of 1940,
      as amended, or any successor statute.

     

    (q)  Compliance
      with Law.
      Such
      Seller Party has complied in all respects with all applicable laws, rules,
      regulations, orders, writs, judgments, injunctions, decrees or awards to which
      it may be subject, except where the failure to so comply could not reasonably
      be
      expected to have a Material Adverse Effect. Each Receivable, together with
      the
      Contract related thereto, does not contravene any laws, rules or regulations
      applicable thereto (including, without limitation, laws, rules and regulations
      relating to truth in lending, fair credit billing, fair credit reporting, equal
      credit opportunity, fair debt collection practices and privacy), and no part
      of
      such Contract is in violation of any such law, rule or regulation, except where
      such contravention or violation could not reasonably be expected to have a
      Material Adverse Effect.

     

    (r)  Compliance
      with Credit and Collection Policy.
      Such
      Seller Party has complied in all material respects with the Credit and
      Collection Policy with regard to each Receivable and the related Contract,
      and
      has not made any material change to such Credit and Collection Policy, except
      such material change as to which the Administrator has been notified in
      accordance with Section
      7.1(a)(vii).

     

    (s)  Payments
      to Originators.
      With
      respect to each Receivable transferred to the Seller under the Receivables
      Sale
      Agreement, the Seller has given reasonably equivalent value to each of the
      Originators in consideration therefor and such transfer was not made for or
      on
      account of an antecedent debt. No transfer by any Originator of any Receivable
      under the Receivables Sale Agreement is or may be voidable under any section
      of
      the Bankruptcy Reform Act of 1978 (11 U.S.C. §§ 101 et
      seq.),
      as
      amended.

     

    (t)  Enforceability
      of Contracts.
      Each
      Contract with respect to each Receivable is effective to create, and has
      created, a legal, valid and binding obligation of the related Obligor to pay
      the
      Outstanding Balance of the Receivable created thereunder and any accrued
      interest thereon, enforceable against the Obligor in accordance with its terms,
      except as such enforcement may be limited by applicable bankruptcy, insolvency,
      reorganization or other similar laws relating to or limiting creditors’ rights
      generally and by general principles of equity (regardless of whether enforcement
      is sought in a proceeding in equity or at law).

     

    (u)  Eligible
      Receivables.
      Each
      Receivable included in the Net Pool Balance as an Eligible Receivable on the
      date of any Monthly Report was an Eligible Receivable on such date.

     

    (v)  Purchase
      Limit and Maximum Receivable Interests.
      Immediately after giving effect to each Incremental Purchase hereunder, the
      Aggregate Invested Amount is less than or equal to the Purchase Limit and the
      aggregate of the Receivable Interests does not exceed 100%.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (w)  Accounting.
      The
      manner in which such Seller Party accounts for the transactions contemplated
      by
      this Agreement and the Receivables Sale Agreement does not jeopardize the
      characterization of the transactions contemplated herein and therein as being
      true sales.

     

    (x)  Separateness.
      From
      the date of the formation of the Seller, the Seller has complied with all
      provisions of Section
      7.1(i)
      applicable to it.

     

    (y)  Contract
      Provisions.
      Except
      for customary adjustments in the ordinary course of business, no Contract with
      respect to any Receivable contains provisions that either (i)
      permit
      or provide for any reduction in the Outstanding Balance of the Receivable
      created thereunder and any accrued interest thereon or (ii)
      could
      otherwise hinder the ability to receive Collections with respect to such
      Receivable.

     

    Article
      VI  

     

    Conditions
      of Purchases

     

    Section
      6.1  Conditions
      Precedent to Initial Incremental Purchase. 

     

    The
      initial Incremental Purchase of a Receivable Interest under this Agreement
      is
      subject to the conditions precedent that (a)
      the
      Administrator shall have received on or before the Closing Date those documents
      listed on Schedule
      A
      and
(b)
      the
      Administrator shall have received all fees and expenses required to be paid
      on
      such date pursuant to the terms of this Agreement and the Fee
      Letter.

     

    Section
      6.2  Conditions
      Precedent to All Purchases and Reinvestments. 

     

    Each
      Incremental Purchase and each Reinvestment shall be subject to the further
      conditions precedent that (a)
      in the
      case of each such Purchase: (i)
      the
      Servicer shall have delivered to the Administrator on or prior to the date
      of
      such Purchase, in form and substance satisfactory to the Administrator, all
      Monthly Reports and Collateral Certificates as and when due under Section
      8.5
      and
(ii)
      upon the
      Administrator’s request, the Servicer shall have delivered to the Administrator
      at least three (3) days prior to such Purchase an interim Monthly Report showing
      the amount of Eligible Receivables; (b)
      the
      Administrator shall have received such other approvals, opinions or documents
      as
      it may reasonably request and (c)
      on each
      Purchase Date, the following statements shall be true (and acceptance of the
      proceeds of such Incremental Purchase or Reinvestment shall be deemed a
      representation and warranty by the Seller that such statements are then
      true):

     

    (i)  the
      representations and warranties set forth in Section
      5.1
      are true
      and correct on and as of the date of such Incremental Purchase or Reinvestment
      as though made on and as of such Purchase Date, except to the extent such
      representations and warranties are expressly limited to an earlier
      date;

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    (ii)  no
      event
      has occurred and is continuing, or would result from such Incremental Purchase
      or Reinvestment, that will constitute an Amortization Event, and no event has
      occurred and is continuing, or would result from such Incremental Purchase
      or
      Reinvestment, that would constitute an Unmatured Amortization Event;
      and

     

    (iii)  the
      Aggregate Invested Amount does not exceed the Purchase Limit in effect on such
      Purchase Date.

     

    It
      is
      expressly understood that each Reinvestment shall, unless otherwise directed
      by
      the Administrator or TPF, occur automatically on each day that the Servicer
      shall receive any Collections without the requirement that any further action
      be
      taken on the part of any Person and notwithstanding the failure of the Seller
      to
      satisfy any of the foregoing conditions precedent in respect of such
      Reinvestment. The failure of the Seller to satisfy any of the foregoing
      conditions precedent in respect of any Reinvestment shall give rise to a right
      of the Administrator, which right may be exercised at any time on demand of
      the
      Administrator, to rescind the related purchase and direct the Seller to pay
      to
      the Administrator’s Account, for the benefit of TPF, an amount equal to the
      Collections prior to the Facility Termination Date that shall have been applied
      to the affected Reinvestment.

     

    Article
      VII 

     

    Covenants

     

    Section
      7.1  Affirmative
      Covenants of the Seller Parties. 

     

    Until
      the
      date on which the Aggregate Unpaids have been indefeasibly paid in full and
      this
      Agreement terminates in accordance with its terms, each Seller Party hereby
      covenants, as to itself, as set forth below:

     

    (a)  Financial
      Reporting.
      Such
      Seller Party will maintain, for itself and each of its Subsidiaries, a system
      of
      accounting established and administered in accordance with GAAP, and furnish
      or
      cause to be furnished to the Administrator:

     

    (i)  Annual
      Reporting.
      Within
      90 days after the close of each of its fiscal years, audited, unqualified
      consolidated financial statements (which shall include balance sheets,
      statements of income and retained earnings and a statement of cash flows) for
      Arch and its consolidated subsidiaries for such fiscal year certified in a
      manner acceptable to the Administrator by KPMG LLP, independent public
      accountants or any other independent public accountants of recognized national
      standing.

     

    (ii)  Quarterly
      Reporting.
      Within
      45 days after the close of the first three (3) quarterly periods of each of
      its
      respective fiscal years, balance sheets of each of the Seller Parties as at
      the
      close of each such period and consolidated statements of income and a statement
      of cash flows for Arch and its consolidated subsidiaries for the period from
      the
      beginning of such fiscal year to the end of such quarter, all certified by
      its
      respective chief financial officer, principal accounting officer, treasurer
      or
      corporate controller.

     

    
      
        
        

      

      
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    (iii)  Compliance
      Certificate.
      Together with the financial statements required hereunder, a compliance
      certificate in substantially the form of Exhibit
      V
      signed
      by such Seller Party’s Authorized Officer and dated the date of such annual
      financial statement or such quarterly financial statement, as the case may
      be.

     

    (iv)  Shareholders
      Statements and Reports.
      Promptly after being mailed to the shareholders of such Seller Party copies
      of
      all financial statements, reports and proxy statements so furnished to
      them.

     

    (v)  S.E.C.
      Filings.
      Promptly after becoming publicly available, copies of all registration
      statements and annual, quarterly, monthly or other regular reports which such
      Seller Party or any of its Subsidiaries files with the Securities and Exchange
      Commission.

     

    (vi)  Copies
      of Notices.
      Promptly upon its receipt of any notice, request for consent, financial
      statements, certification, report or other communication under or in connection
      with any Transaction Document from any Person other than the Administrator
      or
      TPF, copies of the same if such notice, request, consent, financial statements,
      certification, report or other communication can reasonably be expected to
      have
      an adverse effect on the Receivables, the Related Security or the
      Administrator’s rights therein.

     

    (vii)  Change
      in Credit and Collection Policy.
      At
      least thirty (30) days prior to the effectiveness of any material change in
      or
      material amendment to the Credit and Collection Policy, a copy of the Credit
      and
      Collection Policy then in effect and a notice (A)
      indicating such change or amendment, and (B)
      if such
      proposed change or amendment would be reasonably likely to adversely affect
      the
      collectibility of the Receivables or decrease the credit quality of any newly
      created Receivables, requesting the Administrator’s consent
      thereto.

     

    (viii)  Other
      Information.
      Promptly, from time to time, such other information, documents, records or
      reports relating to (A)
      the
      financial condition or operations of such Seller Party as the Administrator
      may
      from time to time reasonably request in order to protect the interests of the
      Administrator, for the benefit of TPF, under or as contemplated by this
      Agreement or (B)
      the
      Receivables as the Administrator may reasonably request.

     

    Information
      required to be delivered pursuant to paragraphs
      (i),
      (ii),
      (iv)
      and
(v)
      of this
Section
      7.1(a)
      shall be
      deemed to have been delivered by the date indicated therein, provided that
      such
      information has been filed with the Securities and Exchange Commission by such
      date; provided further that such Seller Party shall deliver paper copies of
      the
      statements, reports, financial statements and other information referred to
      in
paragraphs
      (i),
      (ii),
      (iv)
      and
(v)
      of this
Section
      7.1(a)
      to the
      Administrator promptly upon request following such filing.

     

    
      
        
        

      

      
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    (b)  Notices.
      Such
      Seller Party will notify the Administrator in writing of any of the following
      promptly upon learning of the occurrence thereof, describing the same and,
      if
      applicable, the steps being taken with respect thereto:

     

    (i)  Amortization
      Events or Unmatured Amortization Events.
      The
      occurrence of each Amortization Event and each Unmatured Amortization Event,
      by
      a statement of an Authorized Officer of such Seller Party.

     

    (ii)  Judgments
      and Proceedings.
      (A)
      The
      entry of any judgment or decree against the Servicer or its Subsidiaries if
      the
      amount of such judgment or decree then outstanding against the Servicer and
      its
      Subsidiaries exceeds $5,000,000 after deducting (1) the amount with respect
      to
      which the Servicer or any such Subsidiary, as the case may be, is insured and
      with respect to which the insurer has not disclaimed responsibility in writing,
      and (2) the amount for which the Servicer or any such Subsidiary is otherwise
      indemnified if the terms of such indemnification are satisfactory to the
      Administrator, and (B)
      the
      institution of any litigation, arbitration proceeding or governmental proceeding
      against the Servicer which, individually or in the aggregate, could reasonably
      be expected to have a Material Adverse Effect; and (C)
      the
      entry of any judgment or decree or the institution of any litigation,
      arbitration proceeding or governmental proceeding against the
      Seller.

     

    (iii)  Material
      Adverse Effect.
      The
      occurrence of any event or condition that has had, or could reasonably be
      expected to have, a Material Adverse Effect.

     

    (iv)  Termination
      Date.
      The
      occurrence of the “Termination Date” under and as defined in the Receivables
      Sale Agreement.

     

    (v)  Defaults
      Under Other Agreements.
      The
      occurrence of a default or an event of default under any other financing
      arrangement pursuant to which the Seller is a debtor or an obligor; or the
      occurrence of a default that could lead to an event of default or an event
      of
      default under any other financing arrangement in a principal amount greater
      than
      or equal to $5,000,000 pursuant to which the Servicer is a debtor or an
      obligor.

     

    (vi)  Notices
      under Receivables Sale Agreement.
      Copies
      of all notices delivered under the Receivables Sale Agreement.

     

    (c)  Compliance
      with Laws and Preservation of Corporate Existence.
      Such
      Seller Party will comply in all respects with all applicable laws, rules,
      regulations, orders, writs, judgments, injunctions, decrees or awards to which
      it may be subject, except where the failure to so comply could not reasonably
      be
      expected to have a Material Adverse Effect. Such Seller Party will preserve
      and
      maintain its corporate existence, rights, franchises and privileges in the
      jurisdiction of its organization, and qualify and remain qualified in good
      standing as a foreign corporation in each jurisdiction where its business is
      conducted, except where the failure to so preserve and maintain or qualify
      could
      not reasonably be expected to have a Material Adverse Effect.

     

    
      
        
        

      

      
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    (d)  Audits.
      In
      addition to information that may be required pursuant to Section
      7.1(a)(viii),
      each
      Seller Party will furnish to the Administrator from time to time such
      information with respect to it and the Receivables as the Administrator may
      reasonably request. Such Seller Party will, from time to time during regular
      business hours as requested by the Administrator upon reasonable notice and
      at
      the sole cost of such Seller Party, permit the Administrator, or its agents
      or
      representatives (and shall cause each Originator to permit the Administrator
      or
      its agents or representatives): (i)
      to
      examine and make copies of and abstracts from all Records in the possession
      or
      under the control of such Person relating to the Purchased Assets, including,
      without limitation, the related Contracts (other than any Confidential Contract
      (except for Confidential Contracts as to which the related Obligor has consented
      to such disclosure or which may be disclosed to others who are subject to a
      confidentiality agreement) as to which disclosure thereof cannot be satisfied
      by
      the execution and delivery of a confidentiality agreement), and (ii)
      to visit
      the offices and properties of such Person for the purpose of examining such
      materials described in clause
      (i)
      above,
      and to discuss matters relating to such Person’s financial condition or the
      Purchased Assets or any Person’s performance under any of the Transaction
      Documents or any Person’s performance under the Contracts and, in each case,
      with any of the officers or employees of the Seller or the Servicer having
      knowledge of such matters (each of the foregoing examinations and visits, a
      “Review”);
      provided,
      however, that,
      so
      long as no Amortization Event has occurred and is continuing, (A)
      the
      Seller Parties shall only be responsible for the costs and expenses of one
      (1)
      Review by Administrator and one (1) Review by an independent auditor selected
      by
      Administrator in any one calendar year, and (B)
      the
      Administrator will not request more than four (4) Reviews in any one calendar
      year.

     

    (e)  Keeping
      and Marking of Records and Books.

     

    (i)  The
      Servicer will (and will cause each Originator to) maintain and implement
      administrative and operating procedures (including, without limitation, an
      ability to recreate records evidencing Receivables in the event of the
      destruction of the originals thereof), and keep and maintain all documents,
      books, records and other information, in each such case as reasonably necessary
      or advisable for the collection of all Receivables (including, without
      limitation, records adequate to permit the immediate identification of each
      new
      Receivable and all Collections of and adjustments to each existing Receivable).
      The Servicer will (and will cause each Originator to) give the Administrator
      notice of any material change in the administrative and operating procedures
      referred to in the previous sentence.

     

    (ii)  Such
      Seller Party will (and will cause each Originator to) on or prior to the date
      hereof, mark its master data processing system and all accounts receivable
      reports generated thereby, each Confidential Contract and its records relating
      to all other Contracts with a legend, reasonably acceptable to the
      Administrator, describing the Administrator’s security interest in the Purchased
      Assets.

     

    
      
        
        

      

      
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    (f)  Compliance
      with Contracts and Credit and Collection Policy.
      Such
      Seller Party will (and will cause each Originator to) timely and fully
(i)
      perform
      and comply in all material respects with all provisions, covenants and other
      promises required to be observed by it under the Contracts related to the
      Receivables, in each case to the same extent as though such Contracts had not
      been transferred to the Administrator, but only to the extent there would not
      be
      an adverse effect upon the Receivables and (ii)
      comply
      in all material respects with the Credit and Collection Policy in regard to
      each
      Receivable and the related Contract.

     

    (g)  Performance
      and Enforcement of Receivables Sale Agreement.
      The
      Seller will, and will require each Originator to, perform each of their
      respective obligations and undertakings under and pursuant to the Receivables
      Sale Agreement, will purchase Receivables thereunder in strict compliance with
      the terms thereof and will vigorously enforce the rights and remedies accorded
      to the Seller under the Receivables Sale Agreement. The Seller will take all
      actions to perfect and enforce its rights and interests (and the rights and
      interests of the Administrator, as the Seller’s assignee) under the Receivables
      Sale Agreement as the Administrator may from time to time reasonably request,
      including, without limitation, making claims to which it may be entitled under
      any indemnity, reimbursement or similar provision contained in the Receivables
      Sale Agreement.

     

    (h)  Ownership.
      The
      Seller will (or will cause each Originator to) take all necessary action to
      establish and maintain, irrevocably in Seller (i)
      legal
      and equitable title to the Receivables and the Collections and (ii)
      all of
      each Originator’s right, title and interest in the Related Security associated
      with the Receivables, in each case, free and clear of any Adverse Claims, other
      than Adverse Claims in favor of the Administrator, for the benefit of the
      Secured Parties (including, without limitation, the filing of all financing
      statements or other similar instruments or documents necessary under the UCC
      (or
      any comparable law) of all appropriate jurisdictions to perfect the
      Administrator’s (for the benefit of the Secured Parties) security interest in
      the Purchased Assets and such other action to perfect, protect or more fully
      evidence the interest of the Administrator for the benefit of the Secured
      Parties as the Administrator may reasonably request); provided,
      however,
      that
      unless and until an Amortization Event or an Unmatured Amortization Event has
      occurred, no Seller Party shall be required to take any actions to establish,
      maintain or perfect the Administrator’s ownership interest in the Related
      Security other than the filing of financing statements under the UCC of all
      appropriate jurisdictions.

     

    (i)  Reliance.
      The
      Seller acknowledges that the Administrator and TPF are entering into the
      transactions contemplated by this Agreement in reliance upon the Seller’s
      identity as a legal entity that is separate from each Originator. Therefore,
      from and after the date of execution and delivery of this Agreement, the Seller
      shall take all reasonable steps, including, without limitation, all steps that
      the Administrator or TPF may from time to time reasonably request, to maintain
      the Seller’s identity as a separate legal entity and to make it manifest to
      third parties that the Seller is an entity with assets and liabilities distinct
      from those of each Originator and any Affiliates thereof (other than the Seller)
      and not just a division of such Originator or any such Affiliate. Without
      limiting the generality of the foregoing and in addition to the other covenants
      set forth herein, the Seller will:

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    (i)  Hold
      itself out to the public and conduct its own business in its own name and
      require that all full-time employees of the Seller, if any, identify themselves
      as such and not as employees of any Originator (including, without limitation,
      by means of providing appropriate employees with business or identification
      cards identifying such employees as the Seller’s employees);

     

    (ii)  compensate
      all employees, consultants and agents directly, from the Seller’s own funds, for
      services provided to the Seller by such employees, consultants and agents and,
      to the extent any employee, consultant or agent of the Seller is also an
      employee, consultant or agent of any Originator or any Affiliate thereof,
      allocate the compensation of such employee, consultant or agent between the
      Seller and such Originator or such Affiliate, as applicable, on a basis that
      reflects the services rendered to the Seller and such Originator or such
      Affiliate, as applicable;

     

    (iii)  separate
      stationery, invoices, checks and other business forms in its own
      name;

     

    (iv)  conduct
      all transactions with each Originator and the Servicer (including, without
      limitation, any delegation of its obligations hereunder as Servicer) strictly
      on
      an arm’s-length basis, allocate fairly and reasonably all overhead expenses
      (including, without limitation, telephone and other utility charges) for items
      shared between the Seller and such Originator on the basis of actual use to
      the
      extent practicable and, to the extent such allocation is not practicable, on
      a
      basis reasonably related to actual use;

     

    (v)  at
      all
      times have a Board of Directors consisting of at least one member that is an
      Independent Director;

     

    (vi)  observe
      all organizational formalities as a distinct entity, and ensure that all
      corporate actions relating to (A)
      the
      selection, maintenance or replacement of the Independent Director, (B)
      the
      dissolution or liquidation of the Seller or (C)
      the
      initiation of, participation in, acquiescence in or consent to any bankruptcy,
      insolvency, reorganization or similar proceeding involving the Seller, are
      duly
      authorized by unanimous vote of its Board of Directors (including the
      Independent Director);

     

    (vii)  maintain
      the Seller’s books and records separate and distinct from those of each
      Originator and any Affiliate thereof and otherwise in such a manner so that
      such
      books and records are readily identifiable as its own assets rather than assets
      of any Originator or any Affiliate thereof;

     

    
      
        
        

      

      
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    (viii)  prepare
      its financial statements separately from those of each Originator and insure
      that any consolidated financial statements of any Originator or any Affiliate
      thereof that include the Seller and that are filed with the Securities and
      Exchange Commission or any other governmental agency have notes clearly stating
      that the Seller is a separate legal entity and that its assets will be available
      first and foremost to satisfy the claims of the creditors of the
      Seller;

     

    (ix)  except
      as
      herein specifically otherwise provided, maintain the funds and other assets
      of
      the Seller separate from, and not commingled with, those of any Originator
      or
      any Affiliate thereof and only maintain bank accounts or other depository
      accounts to which the Seller alone is the account party, into which the Seller
      alone makes deposits and from which the Seller alone (or the Administrator
      hereunder) has the power to make withdrawals;

     

    (x)  pay
      all
      of the Seller’s operating expenses from the Seller’s own assets (except for
      certain payments by any Originator or other Persons pursuant to allocation
      arrangements that comply with the requirements of this Section
      7.1(i))
      and pay
      its own liabilities out of its own funds;

     

    (xi)  operate
      its business and activities such that: it does not engage in any business or
      activity of any kind, or enter into any transaction or indenture, mortgage,
      instrument, agreement, contract, lease or other undertaking, other than the
      transactions contemplated and authorized by this Agreement and the Receivables
      Sale Agreement; and does not create, incur, guarantee, assume or suffer to
      exist
      any indebtedness or other liabilities, whether direct or contingent, other
      than
(A)
      as a
      result of the endorsement of negotiable instruments for deposit or collection
      or
      similar transactions in the ordinary course of business, (B)
      the
      incurrence of obligations under this Agreement, (C)
      the
      incurrence of obligations, as expressly contemplated in the Receivables Sale
      Agreement, to make payment to the applicable Originator thereunder for the
      purchase of Receivables from such Originator under the Receivables Sale
      Agreement, and (D)
      the
      incurrence of operating expenses in the ordinary course of business of the
      type
      otherwise contemplated by this Agreement;

     

    (xii)  maintain
      its corporate charter in conformity with this Agreement, such that it does
      not
      amend, restate, supplement or otherwise modify its Certificate of Incorporation
      or By-Laws in any respect that would impair its ability to comply with the
      terms
      or provisions of any of the Transaction Documents, including, without
      limitation, Section
      7.1(i)
      of this
      Agreement;

     

    (xiii)  maintain
      the effectiveness of, and continue to perform under the Receivables Sale
      Agreement, such that it does not amend, restate, supplement, cancel, terminate
      or otherwise modify the Receivables Sale Agreement, or give any consent, waiver,
      directive or approval thereunder or waive any default, action, omission or
      breach under the Receivables Sale Agreement or otherwise grant any indulgence
      thereunder, without (in each case) the prior written consent of the
      Administrator;

     

    
      
        
        

      

      
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    (xiv)  maintain
      its corporate separateness such that it does not merge or consolidate with
      or
      into, or convey, transfer, lease or otherwise dispose of (whether in one
      transaction or in a series of transactions, and except as otherwise contemplated
      herein) all or substantially all of its assets (whether now owned or hereafter
      acquired) to, or acquire all or substantially all of the assets of, any Person,
      nor at any time create, have, acquire, maintain or hold any interest in any
      Subsidiary;

     

    (xv)  maintain
      at all times the Required Capital Amount (as defined in the Receivables Sale
      Agreement) and refrain from making any dividend, distribution, redemption of
      capital stock or payment of any subordinated indebtedness which would cause
      the
      Required Capital Amount to cease to be so maintained; 

     

    (xvi)  operate
      its business and activities such that it (A)
      does not
      hold itself out as having agreed to guarantee or be obligated for the debts
      of
      any Originator or any Affiliate thereof, (B)
      does not
      hold out its credit as being available to satisfy the obligations of any
      Originator or any Affiliate thereof and (C)
      has not
      pledged assets for the benefit of any Originator or any Affiliate thereof;
      and

     

    (xvii)  take
      such
      other actions as are necessary on its part to ensure that the facts and
      assumptions set forth in the opinion issued by Cravath, Swaine & Moore LLP,
      as counsel for the Seller, in connection with the closing or initial Purchase
      under this Agreement and relating to substantive consolidation issues, and
      in
      the certificates accompanying such opinion, remain true and correct in all
      material respects at all times.

     

    (j)  Collections.
      Such
      Seller Party will cause (i)
      all
      proceeds from all Lock-Boxes to be directly deposited by a Collection Bank
      into
      a Collection Account and (ii)
      each
      Lock-Box and Collection Account to be subject at all times to a Collection
      Account Agreement that is in full force and effect. In the event any payments
      relating to the Purchased Assets are remitted directly to the Seller or any
      Affiliate of the Seller, the Seller will remit (or will cause all such payments
      to be remitted) directly to a Collection Bank and deposited into a Collection
      Account within two (2) Business Days following receipt thereof, and, at all
      times prior to such remittance, the Seller will itself hold or, if applicable,
      will cause such payments to be held in trust for the exclusive benefit of the
      Administrator and TPF. The Seller will maintain exclusive ownership, dominion
      and control (subject to the terms of this Agreement) of each Lock-Box and
      Collection Account and shall not grant the right to take dominion and control
      of
      any Lock-Box or Collection Account at a future time or upon the occurrence
      of a
      future event to any Person, except to the Administrator as contemplated by
      this
      Agreement. 

     

    (k)  Taxes.
      Such
      Seller Party will file all tax returns and reports required by law to be filed
      by it and will promptly pay all taxes and governmental charges at any time
      owing, except any such taxes which are not yet delinquent or are being
      diligently contested in good faith by appropriate proceedings and for which
      adequate reserves in accordance with GAAP shall have been set aside on its
      books. The Seller will pay when due any taxes payable in connection with the
      Receivables, exclusive of taxes on or measured by income or gross receipts
      of
      the Administrator or TPF.

     

    
      
        
        

      

      
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    (l)  Payment
      to Applicable Originator.
      With
      respect to any Receivable purchased by the Seller from an Originator, such
      sale
      shall be effected under, and in compliance with the terms of, the Receivables
      Sale Agreement, including, without limitation, the terms relating to the amount
      and timing of payments to be made to such Originator in respect of the purchase
      price for such Receivable.

     

    Section
      7.2  Negative
      Covenants of the Seller Parties. 

     

    Until
      the
      date on which the Aggregate Unpaids have been indefeasibly paid in full and
      this
      Agreement terminates in accordance with its terms, each Seller Party hereby
      covenants, as to itself, that:

     

    (a)  Change
      in
      Name, Jurisdiction of Organization.
      Such
      Seller Party will not change (i)
      its name
      as it appears in official filings in its jurisdiction of organization,
(ii)
      its
      status as a “registered organization” (within the meaning of any applicable
      enactment of the UCC),
      (iii)
      its
      organizational identification number, if any, issued by its jurisdiction of
      organization, or (iv)
      its
      jurisdiction of organization unless it shall have: (A)
      given
      the Administrator at least thirty (30) days’ prior written notice thereof and
(B)
      delivered to the Administrator all financing statements, instruments and other
      documents requested by the Administrator in connection with such change or
      relocation.

     

    (b)  Change
      in Payment Instructions to Obligors.
      Except
      as may be required by the Administrator pursuant to Section
      8.2(b),
      such
      Seller Party will not add or terminate any bank as a Collection Bank, or make
      any change in the instructions to Obligors regarding payments to be made to
      any
      Lock-Box or Collection Account, unless the Administrator shall have received,
      at
      least ten (10) days before the proposed effective date therefor, (i)
      written
      notice of such addition, termination or change and (ii)
      with
      respect to the addition of a Collection Bank or a Collection Account or
      Lock-Box, an executed Collection Account Agreement with respect to the new
      Collection Account or Lock-Box; provided,
      however,
      that
      the Servicer may make changes in instructions to Obligors regarding payments
      if
      such new instructions require such Obligor to make payments to another existing
      Collection Account.

     

    (c)  Modifications
      to Contracts and Credit and Collection Policy.
      Such
      Seller Party will not, and will not permit any Originator to, make any material
      change or material amendment to the Credit and Collection Policy unless, at
      least 30 days prior to such material change or material amendment, it has
      delivered to the Administrator a copy of the Credit and Collection Policy then
      in effect and notice (i)
      indicating such proposed change or amendment, and (ii)
      if such
      proposed change or amendment would be reasonably likely to adversely affect
      the
      collectibility of the Receivables or decrease the credit quality of any newly
      created Receivables, requesting the Administrator’s consent thereto. Except as
      provided in Section
      8.2(d),
      the
      Servicer will not, and will not permit any Originator to, extend, amend or
      otherwise modify the terms of any Receivable or any Contract related thereto
      other than in accordance with the Credit and Collection Policy.

     

    
      
        
        

      

      
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    (d)  Sales,
      Liens.
      The
      Seller will not sell, assign (by operation of law or otherwise) or otherwise
      dispose of, or grant any option with respect to, or create or suffer to exist
      any Adverse Claim upon (including, without limitation, the filing of any
      financing statement) or with respect to, any of the Purchased Assets, or assign
      any right to receive income with respect thereto (other than, in each case,
      the
      creation of a security interest therein in favor of the Administrator as
      provided for herein or in any Transaction Document), and the Seller will defend
      the right, title and interest of the Secured Parties in, to and under any of
      the
      foregoing property, against all claims of third parties claiming through or
      under the Seller or any Originator. The Seller will not create or suffer to
      exist any mortgage, pledge, security interest, encumbrance, lien, charge or
      other similar arrangement on any of its inventory the sale of which gives rise
      to any Receivable.

     

    (e)  Use
      of
      Proceeds.
      The
      Seller will not use the proceeds of the Purchases for any purpose other than
      (i)
      paying
      for Receivables and Related Security under and in accordance with the
      Receivables Sale Agreement, including without limitation, making payments on
      the
      Subordinated Notes (as defined therein) to the extent permitted thereunder
      and
      under the Receivables Sale Agreement, (ii)
      paying
      its ordinary and necessary operating expenses when and as due, and (iii)
      making
      Restricted Junior Payments to the extent permitted under this
      Agreement.

     

    (f)  Termination
      Date Determination.
      The
      Seller will not designate the Termination Date (as defined in the Receivables
      Sale Agreement), or send any written notice to any Originator in respect
      thereof, without the prior written consent of the Administrator, except with
      respect to the occurrence of such Termination Date arising pursuant to Section
      5.1(d) of the Receivables Sale Agreement.

     

    (g)  Restricted
      Junior Payments.
      The
      Seller will not make any Restricted Junior Payment if after giving effect
      thereto, the Seller’s Net Worth (as defined in the Receivables Sale Agreement)
      would be less than the Required Capital Amount (as defined in the Receivables
      Sale Agreement).

     

    (h)  Seller
      Indebtedness.
      The
      Seller will not incur or permit to exist any Indebtedness or liability on
      account of deposits except: (i)
      the
      Aggregate Unpaids, (ii)
      the
      Subordinated Loans (as defined in the Receivables Sale Agreement), (iii)
      other
      current accounts payable arising in the ordinary course of business and not
      overdue, (iv) the endorsement of negotiable instruments for deposit
      or
      collection or similar transactions in the ordinary course of business,
      (v) the incurrence of obligations under this Agreement, (vi) the
      incurrence of obligations, as expressly contemplated in the Receivables Sale
      Agreement, to make payment to the Originators thereunder for the purchase of
      Receivables from such Originators under the Receivables Sale Agreement, and
      (vii) the incurrence of operating expenses in the ordinary course of
      business of the type otherwise contemplated by this Agreement. The Seller shall
      not hold out its credit as available to satisfy the obligations of others,
      pledge its assets for the benefit of any other entity, make loans or advances
      to
      any other entity or acquire obligations or securities of its
      shareholders.

     

    
      
        
        

      

      
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    (i)  Prohibition
      on Additional Negative Pledges.
      No such
      Seller Party will enter into or assume any agreement (other than this Agreement
      and the other Transaction Documents) prohibiting the creation or assumption
      of
      any Adverse Claim upon the Purchased Assets except as contemplated by the
      Transaction Documents, or otherwise prohibiting or restricting any transaction
      contemplated hereby or by the other Transaction Documents, and no such Seller
      Party will enter into or assume any agreement creating any Adverse Claim upon
      the Subordinated Notes (as defined in the Receivables Sale
      Agreement).

     

    (j)  Contract
      Provisions.
      Except
      for customary adjustments in the ordinary course of business, such Seller Party
      will not (and will not permit any Originator to) permit any Contract with
      respect to any Receivable to contain provisions that either (i)
      permit
      or provide for any reduction in the Outstanding Balance of the Receivable
      created thereunder and any accrued interest thereon or (ii)
      could
      otherwise hinder the ability to receive Collections with respect to such
      Receivable .

     

    Article
      VIII  

     

    Administration
      and Collection

     

    Section
      8.1  Designation
      of Servicer.

     

    (a)  The
      servicing, administration and collection of the Receivables shall be conducted
      by such Person (the “Servicer”)
      so
      designated from time to time in accordance with this Section
      8.1.
      Arch is
      hereby designated as, and hereby agrees to perform the duties and obligations
      of, the Servicer pursuant to the terms of this Agreement. The Administrator
      may,
      upon the occurrence of an Unmatured Amortization Event (other than one arising
      as a result of a Voluntary Termination, unless another Unmatured Amortization
      Event occurs), designate as Servicer any Person to succeed Arch or any successor
      Servicer provided that
      the
      Rating Agency Condition is satisfied.

     

    (b)  Arch
      may
      delegate, and Arch hereby advises the Administrator and TPF that it has
      delegated, to each Originator, as sub-servicer of the Servicer, certain of
      its
      duties and responsibilities as Servicer hereunder in respect of the Receivables
      originated by such Originator. Without the prior written consent of the
      Administrator (which consent shall not be unreasonably withheld) Arch shall
      not
      be permitted to delegate any of its duties or responsibilities as Servicer
      to
      any Person other than (i)
      the
      Seller, (ii)
      any
      Originator, and (iii)
      with
      respect to certain Defaulted Receivables, outside collection agencies in
      accordance with its customary practices. Neither the Seller nor the Originators
      shall be permitted to further delegate to any other Person any of the duties
      or
      responsibilities of the Servicer delegated to it by Arch. If at any time the
      Administrator shall designate as Servicer any Person other than Arch, all duties
      and responsibilities theretofore delegated by Arch to the Seller or any
      Originator may, at the discretion of the Administrator, be terminated forthwith
      on notice given by the Administrator to Arch and to the Seller and such
      Originator.

     

    
      
        
        

      

      
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    (c)  Notwithstanding
      the foregoing subsection
      (b):
      (i)
      Arch
      shall be and remain primarily liable to the Administrator and TPF for the full
      and prompt performance of all duties and responsibilities of the Servicer
      hereunder and (ii)
      the
      Administrator and TPF shall be entitled to deal exclusively with Arch in matters
      relating to the discharge by the Servicer of its duties and responsibilities
      hereunder. The Administrator and TPF shall not be required to give notice,
      demand or other communication to any Person other than Arch in order for
      communication to the Servicer and its sub-servicer or other delegate with
      respect thereto to be accomplished. Arch, at all times that it is
      the
      Servicer, shall be responsible for providing any sub-servicer or other delegate
      of the Servicer with any notice given to the Servicer under this
      Agreement.

     

    Section
      8.2  Duties
      of Servicer.

     

    (a)  The
      Servicer shall take or cause to be taken all such actions as may be necessary
      or
      advisable to collect each Receivable from time to time, all in accordance with
      applicable laws, rules and regulations, with reasonable care and diligence,
      and
      in accordance with the Credit and Collection Policy.

     

    (b)  The
      Servicer will instruct all Obligors to pay all Collections directly to a
      Lock-Box or Collection Account. The Servicer shall effect a Collection Account
      Agreement in a form reasonably acceptable to the Administrator with each bank
      party to a Collection Account at any time. In the case of any remittances
      received in any Lock-Box or Collection Account that shall have been identified,
      to the satisfaction of the Servicer, to not constitute Collections or other
      proceeds of the Receivables or the Related Security, the Servicer shall promptly
      remit such items to the Person identified to it as being the owner of such
      remittances. From and after the date the Administrator delivers to any
      Collection Bank a Collection Notice pursuant to Section
      8.3,
      the
      Administrator may request that the Servicer, and the Servicer thereupon promptly
      shall instruct all Obligors with respect to the Receivables, to remit all
      payments thereon to a new depositary account specified by the Administrator
      and,
      at all times thereafter, the Seller and the Servicer shall not deposit or
      otherwise credit,
      and shall not permit any other Person to deposit or otherwise credit to such
      new
      depositary account any cash or payment item other than Collections.

     

    (c)  The
      Servicer shall administer the Collections in accordance with the procedures
      described herein and in Article
      II.
      The
      Servicer shall set aside and hold in trust for the account of the Seller and
      TPF
      their respective shares of the Collections in accordance with Article
      II.
      The
      Servicer shall, upon the request of the Administrator during the occurrence
      of
      an Unmatured Amortization Event, segregate, in a manner acceptable to the
      Administrator, all cash, checks and other instruments received by it from time
      to time constituting Collections from the general funds of the Servicer or
      the
      Seller prior to the remittance thereof in accordance with Article
      II.
      If the
      Servicer shall be required to segregate Collections pursuant to the preceding
      sentence, the Servicer shall segregate and deposit with a bank designated by
      the
      Administrator such allocable share of Collections of Receivables set aside
      for
      TPF on the first Business Day following receipt by the Servicer of such
      Collections, duly endorsed or with duly executed instruments of
      transfer.

     

    
      
        
        

      

      
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    (d)  The
      Servicer may, in accordance with the Credit and Collection Policy, extend the
      maturity of any Receivable or adjust the Outstanding Balance of any Receivable
      as the Servicer determines to be appropriate to maximize Collections thereof;
      provided,
      however,
      that
      such extension or adjustment shall not alter the status of such Receivable
      as a
      Delinquent Receivable or Defaulted Receivable or limit the rights of the
      Administrator or TPF under this Agreement. The
      Administrator shall have the right to direct the Servicer to commence or settle
      any legal action with respect to any Receivable (whether or not such Receivable
      is a Defaulted or Delinquent Receivable) of an Obligor which is an Obligor
      under
      any Defaulted or Delinquent Receivable; provided,
      however,
      that
      the Servicer shall not be required to comply with such direction if the Seller
      determines, in its reasonable business judgment, that it is preferable not
      to
      enforce or settle any Delinquent or Defaulted Receivable, in which case such
      Defaulted or Delinquent Receivable (and, at the option of the Administrator,
      any
      other Receivable of such Obligor) shall be treated as a Deemed Collection,
      and
      payment shall be made thereon in a manner consistent with Section
      1.4.

     

    (e)  The
      Servicer shall hold in trust for the Seller and the Administrator and TPF all
      Records that (i)
      evidence
      or relate to the Receivables, the related Contracts and Related Security or
      (ii)
      are
      otherwise necessary or desirable to collect the Receivables and shall, as soon
      as practicable upon demand of the Administrator during the occurrence of an
      Unmatured Amortization Event, deliver or make available to the Administrator
      all
      such Records (other than any Record that contains confidentiality provisions
      (except for Records as to which the related Obligor has consented to such
      delivery) that cannot be satisfied by the execution and delivery of a
      confidentiality agreement), at a place selected by the Administrator. The
      Servicer shall, as soon as practicable following receipt thereof turn over
      to
      the Seller any cash collections or other cash proceeds received with respect
      to
      Indebtedness not constituting Receivables. The Servicer shall, from time to
      time
      at the request of the Administrator or TPF, furnish to TPF (promptly after
      any
      such request) a calculation of the amounts set aside for TPF pursuant to
Article
      II.

     

    (f)  Any
      payment by an Obligor in respect of any indebtedness owed by it to any
      Originator or the Seller shall, except as otherwise specified by such Obligor
      or
      otherwise required by contract or law and unless otherwise instructed by the
      Administrator, be applied as a Collection of any Receivable of such Obligor
      (starting with the oldest such Receivable) to the extent of any amounts then
      due
      and payable thereunder before being applied to any other receivable or other
      obligation of such Obligor.

     

    Section
      8.3  Collection
      Notices. 

     

    The
      Administrator is authorized at any time to date and to deliver to the Collection
      Banks the Collection Notices. The Seller hereby transfers to the Administrator
      for the benefit of TPF, effective when the Administrator delivers such notice,
      the exclusive ownership and control of each Lock-Box and the Collection
      Accounts. In case any authorized signatory of the Seller whose signature appears
      on a Collection Account Agreement shall cease to have such authority before
      the
      delivery of such notice, such Collection Notice shall nevertheless be valid
      as
      if such authority had remained in force. The Seller hereby authorizes the
      Administrator, and agrees that the Administrator shall be entitled (a)
      at any
      time after delivery of the Collection Notices, to endorse the Seller’s name on
      checks and other instruments representing Collections, (b)
      at any
      time after the occurrence of an Amortization Event, to enforce the Receivables,
      the related Contracts and the Related Security, and (c)
      at any
      time after the occurrence of an Amortization Event, to take such action as
      shall
      be necessary or desirable to cause all cash, checks and other instruments
      constituting Collections of Receivables to come into the possession of the
      Administrator rather than the Seller.

     

    
      
        
        

      

      
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    Section
      8.4  Responsibilities
      of the Seller. 

     

    Anything
      herein to the contrary notwithstanding, the exercise by the Administrator,
      on
      behalf of TPF, of the Administrator’s rights hereunder shall not release the
      Servicer, any Originator or the Seller from any of their duties or obligations
      with respect to any Receivables or under the related Contracts. The
      Administrator and TPF shall have no obligation or liability with respect to
      any
      Receivables or related Contracts, nor shall any of them be obligated to perform
      the obligations of the Seller or any Originator thereunder.

     

    Section
      8.5  Receivables
      Reports. 

     

    The
      Servicer shall prepare and forward to the Administrator (a)
      on each
      Monthly Reporting Date, a Monthly Report and an electronic file of the data
      contained therein, (b)
      at such
      times as the Administrator may request upon reasonable advance notice, a listing
      by Obligor of all Receivables together with an aging of such Receivables, and
      (c) on the last Business Day of each month from June through and including
      November, a Collateral Certificate as of the 15th
      day of
      such month and an electronic file of the data contained therein; provided,
      however, that
      no
      Collateral Certificate shall be due in any such month when no Invested Amount
      is
      outstanding unless the Seller requests a Purchase during such months and has
      not
      delivered a Collateral Certificate or a Monthly Report within the two weeks
      preceding the proposed Purchase Date.

     

    Section
      8.6  Servicing
      Fee. 

     

    As
      compensation for the Servicer’s servicing activities on their behalf, the
      Servicer shall be paid the Servicing Fee in arrears on each Settlement Date
      out
      of Collections.

     

    
      
        
        

      

      
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    Article
      IX  

     

    Amortization
      Events

     

    Section
      9.1  Amortization
      Events. 

     

    The
      occurrence of any one or more of the following events shall constitute an
      Amortization Event:

     

    (a)  Any
      of
      the Seller Parties shall fail to make any payment or deposit required to be
      made
      by it under the Transaction Documents and such failure shall continue for three
      (3) Business Days.

     

    (b)  (i)
      Any
      representation or warranty made by any of the Seller Parties in this Agreement
      or the Receivables Sale Agreement shall prove to have been incorrect in any
      respect when made or deemed made, (ii)
      any
      information contained in any Monthly Report shall prove to have been incorrect
      in any respect when made, or (iii)
      any
      representation, warranty, certification or statement (other than relating to
      projections or other forward-looking information) made by any of the Seller
      Parties in any other Transaction Document or in any other document delivered
      pursuant hereto or thereto (other than in a Monthly Report) shall prove to
      have
      been incorrect in any material respect when made or deemed made; provided,
      that no
      such event shall constitute an Amortization Event unless such event is
      unremedied for a period of ten (10) Business Days after the earlier
      to
      occur of (i) written notice thereof shall have been given by the
      Administrator to such Seller Party or (ii) an Authorized Officer of
      such
      Seller Party shall have actual knowledge thereof or should have had knowledge
      thereof if such Authorized Officer had exercised reasonable care in the
      performance of his or her duties; provided,
      further,
      that no
      grace period shall apply to Section 5.1(f), 5.1(i), 5.1(j), 5.1(n), 5.1(p),
      5.1(u) or 5.1(v); and provided,
      further,
      no such
      event shall constitute an Amortization Event if the Seller shall have timely
      paid to the Administrator the Deemed Collection required to be paid as a result
      of such event in accordance with Section 1.4..

     

    (c)  Any
      of
      the Seller Parties shall fail to perform or observe any covenant contained
      in
Section
      7.2
      or
Section
      8.5
      when
      due.

     

    (d)  Any
      of
      the Seller Parties shall fail to perform or observe any other covenant or
      agreement under any Transaction Documents and such failure shall continue for
      ten (10) consecutive Business Days.

     

    (e)  Failure
      of the Seller to pay any Indebtedness (other than the Aggregate Unpaids) when
      due or the default by the Seller in the performance of any term, provision
      or
      condition contained in any agreement under which any such Indebtedness was
      created or is governed, the effect of which is to cause, or to permit the holder
      or holders of such Indebtedness to cause, such Indebtedness to become due prior
      to its stated maturity; or any such Indebtedness of
      the
      Seller shall be declared to be due and payable or required to be prepaid (other
      than by a regularly scheduled payment) prior to the date of maturity
      thereof.

     

    
      
        
        

      

      
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    (f)  Failure
      of Arch or any of its Subsidiaries other than the Seller to pay Indebtedness
      in
      excess of $5,000,000 in aggregate principal amount (hereinafter, “Material
      Indebtedness”)
      when
      due (after giving effect to any applicable grace periods with respect thereto);
      or the default by Arch or any of its Subsidiaries other than the Seller in
      the
      performance of any term, provision or condition contained in any agreement
      under
      which any Material Indebtedness was created or is governed, the effect of which
      is to cause, or to permit the holder or holders of such Material Indebtedness
      to
      cause, such Material Indebtedness to become due prior to its stated maturity
      and, unless such Material Indebtedness is earlier accelerated, such default
      is
      not cured within 15 days after its occurrence; or any Material Indebtedness
      of
      Arch or any of its Subsidiaries other than the Seller shall be declared to
      be
      due and payable or required to be prepaid (other than by a regularly scheduled
      payment) prior to the date of maturity thereof.

     

    (g)  An
      Event
      of Bankruptcy shall occur with respect to any Seller Party or any of its
      Subsidiaries.

     

    (h)  As
      at the
      end of any Calculation Period:

     

    (i)  the
      three-month rolling average Delinquency Ratio shall exceed 3.0%,

     

    (ii)  the
      three-month rolling average Default Ratio shall exceed 2.5%,

     

    (iii)  the
      three-month rolling average Dilution Ratio shall exceed 7.5%, or

     

    (iv)  the
      Account Receivable Turnover Ratio shall be less than 6.5.

     

    (i)  A
      Change
      of Control shall occur. 

     

    (j)  (i)
      One or
      more final judgments of a court of competent jurisdiction for the payment of
      money in an aggregate amount of $12,500 or more shall be entered against the
      Seller or (ii)
      one or
      more final judgments of a court of competent jurisdiction for the payment of
      money in an amount in excess of $5,000,000, individually or in the aggregate,
      shall be entered against Arch or any of its Subsidiaries (other than the
      Seller) on claims not covered by insurance or as to which the insurance carrier
      has denied its responsibility, and such judgment shall continue unsatisfied
      and
      in effect for sixty (60) consecutive days without a stay of
      execution.

     

    (k)  The
      “Termination Date” under and as defined in the Receivables Sale Agreement shall
      occur under the Receivables Sale Agreement or any Originator shall for any
      reason cease to transfer, or cease to have the legal capacity to transfer,
      or
      otherwise be incapable of transferring Receivables to the Seller under the
      Receivables Sale Agreement.

     

    
      
        
        

      

      
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    (l)  This
      Agreement shall terminate in whole or in part (except in accordance with its
      terms), or shall cease to be effective or to be the legally valid, binding
      and
      enforceable obligation of the Seller, or any Originator shall directly or
      indirectly contest in any manner such effectiveness,
      validity, binding nature or enforceability, or the Administrator for the benefit
      of TPF shall cease to have a valid and perfected first priority security
      interest in the Receivables, its Collections, “Supporting Obligations” (as
      defined in Article 9 of the UCC in effect in each relevant jurisdiction), the
      Seller’s right, title and interest in, to and under each of the Transaction
      Documents to which it is a party, returned goods the sale of which gave rise
      to
      any Receivable, security interests in favor of the Seller that secures payment
      of such Receivable and all other items of Related Security in which an interest
      therein may be perfected by the filing of a financing statement under Article
      9
      of the UCC and proceeds of the foregoing, or any Person shall contest the
      Administrator’s perfected first priority ownership interest in that portion of
      the Related Security in which perfection cannot be accomplished under Article
      9
      of the relevant UCC, or any Secured Party shall incur any loss resulting from
      the Seller’s failure to perfect Administrator’s ownership interest in that
      portion of the Related Security in which perfection cannot be accomplished
      under
      Article 9 of the relevant UCC.

     

    (m)  On
      any
      day, the Aggregate Invested Amount shall exceed the Purchase Limit, and such
      failure shall continue unremedied for three (3) Business Days.

     

    (n)  The
      Internal Revenue Service shall file notice of a lien pursuant to Section 6323
      of
      the Tax Code with regard to any of the Receivables or the Related Security
      or
      the PBGC shall, file notice of a lien pursuant to Section 4068 of ERISA with
      regard to any of the Receivables or the Related Security, and any such lien
      shall not have been released within the earlier to occur of (i)
      seven
      (7) days after the date of such filing and (ii)
      the day
      on which the Administrator becomes aware of such filing.

     

    (o)  Any
      Plan
      of any Seller Party or any of its ERISA Affiliates:

     

    (i)  shall
      fail to be funded in accordance with the minimum funding standard required
      by
      applicable law, the terms of such Plan, Section 412 of the Tax Code or Section
      302 of ERISA for any plan year or a waiver of such standard is sought or granted
      with respect to such Plan under applicable law, the terms of such Plan or
      Section 412 of the Tax Code or Section 303 of ERISA; or

     

    (ii)  is
      being,
      or has been, terminated or the subject of termination proceedings under
      applicable law or the terms of such Plan; or

     

    (iii)  shall
      require Arch or any of its ERISA Affiliates to provide security under applicable
      law, the terms of such Plan, Section 401 or 412 of the Tax Code or Section
      306
      or 307 of ERISA; or

     

    (iv)  results
      in a liability to Arch or any of its ERISA Affiliates under applicable law,
      the
      terms of such Plan, or Title IV ERISA,

     

    and
      there
      shall result from any such failure, waiver, termination or other event a
      liability to the PBGC or a Plan that would have a Material Adverse
      Effect.

     

    (p)  Any
      event
      shall occur which has, or could be reasonably expected to have a Material
      Adverse Effect.

     

    
      
        
        

      

      
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    (q)  On
      any
      day a report is required to be delivered in accordance with Section 8.5, the
      Net
      Pool Balance shall be less than an amount equal to the sum of (i) the Aggregate
      Invested Amount plus (ii) the Required Reserve, and such failure shall continue
      unremedied for three (3) Business Days.

     

    Section
      9.2  Remedies. 

     

    Upon
      the
      occurrence and during the continuation of an Amortization Event, the
      Administrator may, or upon the direction of the Required Liquidity Banks shall,
      take any of the following actions: (a)
      except
      upon a Voluntary Termination (unless another Amortization Event occurs), replace
      the Person then acting as Servicer, (b)
      declare
      the Facility Termination Date to have occurred, whereupon Reinvestments shall
      immediately terminate and the Facility Termination Date shall forthwith occur,
      all without demand, protest or further notice of any kind, all of which are
      hereby expressly waived by the Seller Parties; provided,
      however,
      that
      upon the occurrence of an Event of Bankruptcy with respect to a Seller Party,
      the Facility Termination Date shall automatically occur, without demand, protest
      or any notice of any kind, all of which are hereby expressly waived by such
      Seller Party, (c)
      deliver
      the Collection Notices to the Collection Banks, (d)
      exercise
      all rights and remedies of a secured party upon default under the UCC and other
      applicable laws, and (e)
      notify
      Obligors of the Administrator’s security interest in the Receivables and other
      Purchased Assets. The aforementioned rights and remedies shall be without
      limitation, and shall be in addition to all other rights and remedies of the
      Administrator and TPF otherwise available under any other provision of this
      Agreement, by operation of law, at equity or otherwise, all of which are hereby
      expressly preserved, including, without limitation, all rights and remedies
      provided under the UCC, all of which rights shall be cumulative.

     

    Article
      X  

     

    Indemnification

     

    Section
      10.1  Indemnities
      by the Seller Parties. 

     

    Without
      limiting any other rights that the Administrator or TPF may have hereunder
      or
      under applicable law, (a)
      the
      Seller hereby agrees to indemnify (and pay upon demand to) the Administrator,
      TPF, each of the Liquidity Banks and each of the respective assigns, officers,
      directors, agents and employees of the foregoing (each, an “Indemnified
      Party”)
      from
      and against any and all damages, losses, claims, taxes, liabilities, costs,
      expenses and for all other amounts payable, including reasonable attorneys’ fees
      and disbursements (all of the foregoing being collectively referred to as
“Indemnified
      Amounts”)
      awarded against or incurred by any of them arising out of or as a result of
      this
      Agreement or the acquisition, either directly or indirectly, by TPF or any
      of
      its Liquidity Banks of an interest in the Receivables, and (b)
      the
      Servicer hereby agrees to indemnify (and pay upon demand to) each Indemnified
      Party for Indemnified Amounts awarded against or incurred by any of them arising
      out of the Servicer’s activities as Servicer hereunder excluding,
      however,
      in all
      of the foregoing instances under the preceding clauses
      (a)
      and
(b):

     

    (i)  Indemnified
      Amounts to the extent a final judgment of a court of competent jurisdiction
      holds that such Indemnified Amounts resulted from gross negligence or willful
      misconduct on the part of the Indemnified Party seeking indemnification;

     

    
      
        
        

      

      
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    (ii)  Indemnified
      Amounts to the extent the same includes losses in respect of Receivables that
      are uncollectible on account of the insolvency, bankruptcy or lack of
      creditworthiness of the related Obligor; or

     

    (iii)  taxes
      imposed by the United States, the Indemnified Party’s jurisdiction of
      organization (or in the case of an individual, his or her jurisdiction of
      primary residence) or any other jurisdiction in which such Indemnified Party
      has
      established a taxable nexus other than in connection with the transactions
      contemplated hereby, on or measured by the overall net income of such
      Indemnified Party to the extent that the computation of such taxes is consistent
      with the characterization for income tax purposes of the acquisition by TPF
      of
      Receivables as a loan or loans by TPF to the Seller secured by the Receivables,
      the Related Security, the Collection Accounts and the Collections;

     

    provided,
      however,
      that
      nothing contained in this sentence shall limit the liability of the Seller
      Parties or limit the recourse of TPF to the Seller Parties for amounts otherwise
      specifically provided to be paid by the Seller Parties under the terms of this
      Agreement. Without limiting the generality of the foregoing indemnification,
      the
      Seller shall indemnify the Administrator and TPF for Indemnified Amounts
      (including, without limitation, losses in respect of uncollectible receivables,
      regardless of whether reimbursement therefor would constitute recourse to the
      Seller or the Servicer) relating to or resulting from:

     

    (i)  any
      representation or warranty made by a Seller Party or any Originator (or any
      officers of any such Person) under or in connection with this Agreement, any
      other Transaction Document or any other information or report delivered by
      any
      such Person pursuant hereto or thereto, which shall have been false or incorrect
      when made or deemed made;

     

    (ii)  the
      failure by the Seller, the Servicer or any Originator to comply in any material
      respect with any applicable law, rule or regulation with respect to any
      Receivable or Contract related thereto, or the nonconformity of any Receivable
      or Contract included therein with any such applicable law, rule or regulation
      or
      any failure of any Originator to keep or perform any of its obligations, express
      or implied, with respect to any Contract;

     

    (iii)  any
      failure of the Seller, the Servicer or any Originator to perform in any material
      respect its duties, covenants or other obligations in accordance with the
      provisions of this Agreement or any other Transaction Document;

     

    (iv)  any
      products liability, personal injury or damage suit, or other similar claim
      arising out of or in connection with merchandise, insurance or services that
      are
      the subject of any Contract or any Receivable;

     

    (v)  any
      dispute, claim, offset or defense (other than discharge in bankruptcy of the
      Obligor) of the Obligor to the payment of any Receivable (including, without
      limitation, a defense based on such Receivable or the related Contract not
      being
      a legal, valid and binding obligation of such Obligor enforceable against it
      in
      accordance with its terms), or any other claim resulting from the sale of the
      merchandise or service related to such Receivable or the furnishing or failure
      to furnish such merchandise or services;

     

    
      
        
        

      

      
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    (vi)  the
      commingling of Collections of Receivables at any time with other
      funds;

     

    (vii)  any
      investigation, litigation or proceeding related to or arising from this
      Agreement or any other Transaction Document, the transactions contemplated
      hereby, the use of the proceeds of any Purchase, the Purchased Assets or any
      other investigation, litigation or proceeding relating to the Seller, the
      Servicer or any Originator in which any Indemnified Party becomes involved
      as a
      result of any of the transactions contemplated hereby;

     

    (viii)  any
      inability to litigate any claim against any Obligor in respect of any Receivable
      as a result of such Obligor being immune from civil and commercial law and
      suit
      on the grounds of sovereignty or otherwise from any legal action, suit or
      proceeding;

     

    (ix)  any
      Amortization Event of the type described in Section
      9.1(g);

     

    (x)  any
      failure of the Seller to acquire and maintain legal and equitable title to,
      and
      ownership of any of the Purchased Assets from the applicable Originator, free
      and clear of any Adverse Claim (other than as created hereunder); or any failure
      of the Seller to give reasonably equivalent value to any Originator under the
      Receivables Sale Agreement in consideration of the transfer by such Originator
      of any Receivable, or any attempt by any Person to void such transfer under
      statutory provisions or common law or equitable action (except as created by
      the
      Transaction Documents);

     

    (xi)  any
      failure to vest and maintain vested in the Administrator for the benefit of
      TPF,
      or to transfer to the Administrator for the benefit of the Secured Parties,
      a
      valid first priority perfected security interests in the Purchased Assets,
      free
      and clear of any Adverse Claim (except as created by the Transaction
      Documents);

     

    (xii)  the
      failure to have filed, or any delay in filing, financing statements or other
      similar instruments or documents under the UCC of any applicable jurisdiction
      or
      other applicable laws with respect to any Purchased Assets, and the proceeds
      thereof, whether at the time of any Purchase or at any subsequent
      time;

     

    (xiii)  any
      action or omission by a Seller Party which reduces or impairs the rights of
      the
      Administrator or TPF with respect to any Purchased Assets or the value of any
      Purchased Assets;

     

    
      
        
        

      

      
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    (xiv)  any
      attempt by any Person to void any Purchase or the Administrator’s security
      interest in the Purchased Assets under statutory provisions or common law or
      equitable action; and

     

    (xv)  the
      failure of any Receivable included in the calculation of the Net Pool Balance
      as
      an Eligible Receivable to be an Eligible Receivable at the time so
      included.

     

    Section
      10.2  Increased
      Cost and Reduced Return. 

     

    If
      after
      the date hereof, any Funding Source shall be charged any fee, expense or
      increased cost (other than taxes) on account of the adoption of any applicable
      law, rule or regulation (including any applicable law, rule or regulation
      regarding capital adequacy) or any change therein, or any change in the
      interpretation or administration thereof by any governmental authority, central
      bank or comparable agency charged with the interpretation or administration
      thereof, or compliance with any request or directive (whether or not having
      the
      force of law) of any such authority, central bank or comparable agency (a
“Regulatory
      Change”):
      (a)
      that
      subjects any Funding Source to any charge or withholding on or with respect
      to
      any Funding Agreement or a Funding Source’s obligations under a Funding
      Agreement, or on or with respect to the Receivables, or (b)
      that
      imposes, modifies or deems applicable any reserve, assessment, insurance charge,
      special deposit or similar requirement against assets of, deposits with or
      for
      the account of a Funding Source, or credit extended by a Funding Source pursuant
      to a Funding Agreement or (c)
      that
      imposes any other condition the result of which is to increase the cost to
      a
      Funding Source of performing its obligations under a Funding Agreement, or
      to
      reduce the rate of return on a Funding Source’s capital as a consequence of its
      obligations under a Funding Agreement, or to reduce the amount of any sum
      received or receivable by a Funding Source under a Funding Agreement or to
      require any payment calculated by reference to the amount of interests or loans
      held or interest received by it, then, promptly upon demand by the
      Administrator, the Seller shall pay to the Administrator, for the benefit of
      the
      relevant Funding Source, such amounts charged to such Funding Source or such
      amounts to otherwise compensate such Funding Source for such increased cost
      or
      such reduction; provided,
      however,
      that no
      Funding Source shall be entitled to any compensation for any increased costs
      under this Section
      10.2
      unless
      the Administrator or such Funding Source delivers a reasonably detailed
      certificate to the Seller setting forth the amounts and the basis for such
      increased costs.

     

    Section
      10.3  Other
      Costs and Expenses. 

     

    The
      Seller shall pay to the Administrator and TPF promptly on demand all reasonable
      costs and out-of-pocket expenses in connection with the preparation, execution,
      delivery and administration of the Transaction Documents and the transactions
      contemplated thereby, the
      Liquidity Agreement and, to the extent directly related to this Agreement,
      the
      Program Documents (including any amendments or modifications of or supplements
      to the Program Documents directly related to this Agreement), including
      without limitation, the cost of TPF’s auditors auditing the books, records and
      procedures of the Seller, reasonable fees and out-of-pocket expenses of legal
      counsel for TPF and the Administrator with respect thereto and with respect
      to
      advising TPF and the Administrator as to their respective rights and remedies
      under this Agreement. The Seller shall pay to the Administrator promptly on
      demand any and all reasonable costs and expenses of the Administrator and TPF,
      if any, including reasonable counsel fees and expenses in connection with the
      enforcement of this Agreement and the other documents delivered hereunder and
      in
      connection with any restructuring or workout of this Agreement or such
      documents, or the administration of this Agreement following an Amortization
      Event. The Seller shall reimburse TPF promptly on demand for all other costs
      and
      expenses incurred by TPF (“Other
      Costs”),
      including, without limitation, the cost of auditing TPF’s books by certified
      public accountants, the cost of rating the Commercial Paper by independent
      financial rating agencies, and the reasonable fees and out-of-pocket expenses
      of
      counsel for TPF or any counsel for any shareholder of TPF with respect to
      advising TPF or such shareholder as to matters relating to TPF’s
      operations.

     

    
      
        
        

      

      
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    Section
      10.4  Allocations. 

     

    TPF
      shall
      in its reasonable judgment allocate the liability for Other Costs among the
      Seller and other Persons with whom TPF has entered into agreements to purchase
      interests in or finance receivables and other financial assets (“Other
      Customers”).
      If
      any Other Costs are attributable to the Seller and not attributable to any
      Other
      Customer, the Seller shall be solely liable for such Other Costs. However,
      if
      Other Costs are attributable to Other Customers and not attributable to the
      Seller, such Other Customer shall be solely liable for such Other Costs. All
      allocations to be made pursuant to the foregoing provisions of this Article
      X
      shall be
      made by TPF in its sole discretion and shall be binding on the Seller and the
      Servicer.

     

    Article
      XI  

     

    The
      Administrator

     

    Section
      11.1  Authorization
      and Action. 

     

    TPF,
      on
      behalf of itself and its assigns, hereby designates and appoints STCM to act
      as
      its agent and administrator under this Agreement and under each other
      Transaction Document, and authorizes the Administrator to take such actions
      as
      agent on its behalf and to exercise such powers as are delegated to the
      Administrator by the terms of this Agreement and the other Transaction Documents
      together with such powers as are reasonably incidental thereto, including,
      without limitation, the power to perfect all security interests granted under
      the Transaction Documents.

     

    Section
      11.2  STCM,
      SunTrust Bank and Affiliates. 

     

    STCM,
      SunTrust Bank
      and
      their Affiliates may generally engage in any kind of business with Seller,
      Servicer, any Obligor, any of their respective Affiliates and any Person who
      may
      do business with or own securities of any of the foregoing, all as if STCM
      were
      not Administrator and without any duty to account therefor to TPF.

     

    
      
        
        

      

      
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    Article
      XII  

     

    Assignments
      and Participations

     

    Section
      12.1  Assignments
      and Participations by TPF. 

     

    Each
      of
      the parties hereto, on behalf of its successors and assigns, hereby agrees
      and
      consents to the complete or partial sale by TPF of all or any portion of its
      rights under, interest in, title to and obligations under this Agreement to
      the
      Liquidity Banks pursuant to the Liquidity Agreement, regardless of whether
      such
      sale constitutes an assignment or the sale of a participation in such rights
      and
      obligations.

     

    Section
      12.2  Prohibition
      on Assignments by the Seller Parties. 

     

    No
      Seller
      Party may assign any of its rights or obligations under this Agreement without
      the prior written consent of the Administrator and each of TPF and without
      satisfying the Rating Agency Condition.

     

    Article
      XIII  

     

    Miscellaneous

     

    Section
      13.1  Waivers
      and Amendments.

     

    No
      failure or delay on the part of the Administrator or TPF in exercising any
      power, right or remedy under this Agreement shall operate as a waiver thereof,
      nor shall any single or partial exercise of any such power, right or remedy
      preclude any other further exercise thereof or the exercise of any other power,
      right or remedy. The rights and remedies herein provided shall be cumulative
      and
      nonexclusive of any rights or remedies provided by law. Any waiver
      of
      this Agreement shall be effective only in the specific instance and for the
      specific purpose for which given. No
      provision of this Agreement may be amended, supplemented, modified or waived
      except in writing in accordance with the provisions of this Section
      13.10.
      TPF,
      the Seller and the Administrator, may enter into written modifications or
      waivers of any provisions of this Agreement, provided,
      however,
      that
any
      material amendment, waiver or other modification of this Agreement shall require
      satisfaction of the Rating Agency Condition.

     

    Section
      13.2  Notices. 

     

    Except
      as
      provided in this Section
      13.2,
      all
      communications and notices provided for hereunder shall be in writing (including
      bank wire, telecopy or electronic facsimile transmission or similar writing)
      and
      shall be given to the other parties hereto at their respective addresses or
      telecopy numbers set forth on the signature pages hereof or at such other
      address or telecopy number as such Person may hereafter specify for the purpose
      of notice to each of the other parties hereto. Each such notice or other
      communication shall be effective (a)
      if given
      by telecopy, upon the receipt thereof, (b)
      if given
      by mail, three (3) Business Days after the time such communication is deposited
      in the mail with first class postage prepaid or (c)
      if given
      by any other means, when received at the address specified in this Section
      13.2.
      The
      Seller hereby authorizes the Administrator to effect Purchases and Interest
      Period and Yield Rate selections based on telephonic notices made by any Person
      whom the Administrator in good faith believes to be acting on behalf of the
      Seller. The Seller agrees to deliver promptly to the Administrator a written
      confirmation of each telephonic notice signed by an authorized officer of the
      Seller; provided,
      however,
      the
      absence of such confirmation shall not affect the validity of such notice.
      If
      the written confirmation differs from the action taken by the Administrator,
      the
      records of the Administrator shall govern absent manifest error.

     

    
      
        
        

      

      
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    Section
      13.3  Protection
      of Administrator’s Security Interest.

     

    (a)  The
      Seller agrees that from time to time, at its expense, it will promptly execute
      and deliver all instruments and documents, and take all actions, that may be
      necessary or desirable, or that the Administrator may request, to perfect,
      protect or more fully evidence the Administrator’s security interest in the
      Purchased Assets, or to enable the Administrator or TPF to exercise and enforce
      their rights and remedies hereunder; provided,
      however,
      that
      unless and until an Amortization Event or an Unmatured Amortization Event has
      occurred, no Seller Party shall be required to take any actions to establish,
      maintain or perfect the Seller’s ownership interest in the Related Security
      other than the filing of financing statements under the UCC of all appropriate
      jurisdictions. During the occurrence and continuance of an Unmatured
      Amortization Event or an Amortization Event, the Administrator may, or the
      Administrator may direct the Seller or the Servicer to, notify the
      Obligors of Receivables, at the Seller’s expense, of the ownership or security
      interests of TPF under this Agreement. During the occurrence and continuance
      of
      an Unmatured Amortization Event or an Amortization Event, the Administrator
      may
      direct the Seller or Servicer (and if the Seller or Servicer fails to do so)
      Administrator may direct that payments of all amounts due or that become due
      under any or all Receivables be made directly to an account specified by the
      Administrator or its designee which may be an account of the Administrator
      or
      its designee. The Seller or the Servicer (as applicable) shall, at the
      Administrator’s request, withhold the identities of the Administrator and TPF in
      any such notification. 

     

    (b)  If
      any
      Seller Party fails to perform any of its obligations hereunder, the
      Administrator or TPF may (but shall not be required to) upon notice to such
      Seller Party perform, or cause performance of, such obligations, and the
      Administrator’s or TPF’s costs and expenses incurred in connection therewith
      shall be payable by the Seller as provided in Section
      10.3.
      The
      Seller Parties irrevocably authorize the Administrator at any time and from
      time
      to time in the sole discretion of the Administrator, and appoints the
      Administrator as its attorney-in-fact, to act on behalf of the Seller Parties
      (i)
      to
      execute on behalf of the Seller as debtor and to file financing statements
      necessary or desirable in the Administrator’s sole discretion to perfect and to
      maintain the perfection and priority of the interest of TPF in the Receivables
      and (ii)
      to file
      a carbon, photographic or other reproduction of this Agreement or any financing
      statement with respect to the Receivables as a financing statement in such
      offices as the Administrator in its sole discretion deems necessary or desirable
      to perfect and to maintain the perfection and priority of the Administrator’s
      security interest in the Purchased Assets, for the benefit of the Secured
      Parties. This appointment is coupled with an interest and is
      irrevocable (A)
      Each of
      the Seller Parties hereby authorizes the Administrator to file financing
      statements and other filing or recording documents with respect to the
      Receivables and Related Security (including any amendments thereto, or
      continuation or termination statements thereof), without the signature or other
      authorization of the Seller Parties, in such form and in such offices as the
      Administrator reasonably determines appropriate to perfect or maintain the
      perfection of the security interest of the Administrator hereunder including,
      without limitation, financing statements naming Seller as debtor describing
      the
      collateral as “all assets” or “all personal property of the debtor, whether now
      owned and existing or hereafter arising or acquired,”(B)
      each of
      the Seller Parties acknowledges and agrees that it is not authorized to, and
      will not, file financing statements or other filing or recording documents
      with
      respect to the Receivables or Related Security (including any amendments
      thereto, or continuation or termination statements thereof), without the express
      prior written approval by the Administrator, consenting to the form and
      substance of such filing or recording document, and (C)
      each of
      the Seller Parties approves, authorizes and ratifies any filings or recordings
      made by or on behalf of the Administrator in connection with the perfection
      of
      the security interests in favor of the Seller or the Administrator.

     

    
      
        
        

      

      
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    Section
      13.4  Confidentiality.

     

    (a)  Each
      of
      the Seller Parties shall maintain and shall cause each of its employees and
      officers to maintain the confidentiality of any confidential or proprietary
      information with respect to the Administrator and TPF and their respective
      businesses obtained by it or them in connection with the structuring,
      negotiating and execution of the transactions contemplated herein, except that
      the Seller Parties and their respective officers and employees may disclose
      such
      information to such Seller Party’s directors, external accountants and attorneys
      and in accordance with any applicable law, rule, regulation, direction, request
      or order of any judicial, administrative or regulatory authority or proceeding
      (whether or not having the force or effect of law).

     

    (b)  Anything
      herein to the contrary notwithstanding, the Seller Parties hereby consent to
      the
      disclosure of any nonpublic information with respect to it (i)
      to the
      Administrator, the Liquidity Banks or TPF by each other, (ii)
      by the
      Administrator or TPF to any prospective or actual assignee or participant of
      any
      of them and (iii)
      by the
      Administrator to any rating agency, Commercial Paper dealer or provider of
      a
      surety, guaranty or credit or liquidity enhancement to TPF or any entity
      organized for the purpose of purchasing, or making loans secured by, financial
      assets for which STCM acts as the administrator or agent and to any officers,
      directors, employees, outside accountants and attorneys of any of the foregoing,
      provided that
      each
      such Person is informed of the confidential nature of such information. In
      addition, TPF and the Administrator may disclose any such nonpublic information
      in accordance with any law, rule, regulation, direction, request or order of
      any
      judicial, administrative or regulatory authority or proceedings (whether or
      not
      having the force or effect of law).

     

    (c)  TPF
      and
      the Administrator shall each maintain and shall cause each of its employees
      and
      officers to maintain the confidentiality of any confidential or proprietary
      information with respect to each Originator, the Obligors and their respective
      businesses obtained by it in connection with the due diligence evaluations,
      structuring, negotiating and execution of the Transaction Documents, and the
      consummation of the transactions contemplated herein and any other activities
      of
      TPF or the Administrator arising from or related to the transactions
      contemplated herein provided,
      however,
      that
      each of TPF and the Administrator and its employees and officers shall be
      permitted to disclose such confidential or proprietary information: (i)
      to the
      other Purchasers, (ii)
      to any
      prospective or actual assignee or participant of TPF, the Administrator or
      the
      other Purchasers who execute a confidentiality agreement for the benefit of
      any
      Originator and Seller on terms comparable to those required of TPF and the
      Administrator hereunder with respect to such disclosed information, (iii)
      to any
      rating agency, provider of a surety, guaranty or credit or liquidity enhancement
      to TPF, (iv)
      to any
      officers, directors, employees, outside accountants and attorneys of any of
      the
      foregoing, and (v)
      to the
      extent required pursuant to any applicable law, rule, regulation, direction,
      request or order of any judicial, administrative or regulatory authority or
      proceedings with competent jurisdiction (whether or not having the force or
      effect of law).

     

    
      
        
        

      

      
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    Section
      13.5  Bankruptcy
      Petition. 
      The
      Seller, the Servicer, the Administrator and each Liquidity Bank hereby covenants
      and agrees that, prior to the date that is one year and one day after the
      payment in full of all outstanding senior indebtedness of TPF, it will not
      institute against, or join any other Person in instituting against, TPF any
      bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
      or other similar proceeding under the laws of the United States or any state
      of
      the United States.

     

    Section
      13.6  Limitation
      of Liability.
       Except
      with respect to any claim arising out of the willful misconduct or gross
      negligence of TPF, the Administrator or any Liquidity Bank, no claim may be
      made
      by a Seller Party or any other Person against TPF, the Administrator or any
      Liquidity Bank or their respective Affiliates, directors, officers, employees,
      attorneys or agents for any special, indirect, consequential or punitive damages
      in respect of any claim for breach of contract or any other theory of liability
      arising out of or related to the transactions contemplated by this Agreement,
      or
      any act, omission or event occurring in connection therewith; and the Seller
      Parties hereby waive, release, and agree not to sue upon any claim for any
      such
      damages, whether or not accrued and whether or not known or suspected to exist
      in its favor.

     

    Section
      13.7  No
      Recourse Against TPF.
       The
      obligations of TPF under this Agreement are solely the limited liability company
      obligations of TPF. No recourse shall be had for any obligation, covenant or
      agreement (including, without limitation, the payment of any amount owing in
      respect to this Agreement or the payment of any Fee hereunder or for any other
      obligation or claim) arising out of or based upon this Agreement or any other
      agreement, instrument or Transaction Document entered into pursuant hereto
      or in
      connection herewith against any member, employee, officer, director, manager,
      administrator or organizer of TPF, as such, by the enforcement of any assessment
      or by any legal or equitable proceeding, by virtue of any statute or
      otherwise.

     

    Section
      13.8  Limitation
      on Payments.
       Notwithstanding any provisions contained in this Agreement to the
      contrary, TPF shall not, and shall not be obligated to, pay any amount pursuant
      to this Agreement unless (a) TPF has received funds which may be used to make
      such payment and which funds are not required to repay the Commercial Paper
      and
      advances under the Voluntary Advance Agreement when due and (b) after giving
      effect to such payment, either (i) there is sufficient liquidity availability
      (determined in accordance with the Program Documents), under all of the
      liquidity facilities for TPF’s commercial paper program, to pay the “Face
      Amount” (as defined below) of all outstanding Commercial Papers and advances
      under the Voluntary Advance Agreement when due or (ii) all Commercial Papers
      and
      advances under the Voluntary Advance Agreement are paid in full. Any amount
      which TPF does not pay pursuant to the operation of the preceding sentence
      shall
      not constitute a claim (as defined in §101 of the Bankruptcy Code) against or an
      obligation of TPF for any such insufficiency unless and until such payment
      may
      be made in accordance with clauses
      (a)
      and
(b)
      above.
      The agreements in this Section shall survive termination of this Agreement
      and
      payment of all obligations hereunder. As used in this Section, the term “Face
      Amount” means, with respect to outstanding Commercial Papers or advances under
      the Voluntary Advance Agreement, (x) the face amount of any such Commercial
      Papers issued on a discount basis, and (y) the principal amount of, plus the
      amount of all interest accrued and to accrue thereon to the stated maturity
      date
      of, any such Commercial Papers issued on an interest-bearing basis or any such
      advances under the Voluntary Advance Agreement.

     

    
      
        
        

      

      
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    Section
      13.9  CHOICE
      OF LAW. 

     

    THIS
      AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
      STATE OF NEW YORK, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF
      OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW AND EXCEPT TO THE
      EXTENT THAT THE PERFECTION OF THE OWNERSHIP INTEREST OF SELLER OR THE SECURITY
      INTEREST OF THE AGENT, FOR THE BENEFIT OF THE SECURED PARTIES, IN ANY OF THE
      COLLATERAL IS GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF
      NEW
      YORK.

     

    Section
      13.10  CONSENT
      TO JURISDICTION. 

     

    EACH
      PARTY TO THIS AGREEMENT HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE
      JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN
      NEW
      YORK, NEW YORK, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
      AGREEMENT OR ANY DOCUMENT EXECUTED BY SUCH PERSON PURSUANT TO THIS AGREEMENT,
      AND EACH SUCH PARTY HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF
      SUCH
      ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND
      IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE
      OF
      ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT
      IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE AGENT
      OR
      ANY PURCHASER TO BRING PROCEEDINGS AGAINST ANY SELLER PARTY IN THE COURTS OF
      ANY
      OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY ANY SELLER PARTY AGAINST THE
      AGENT OR ANY PURCHASER OR ANY AFFILIATE OF THE AGENT OR ANY PURCHASER INVOLVING,
      DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR
      CONNECTED WITH THIS AGREEMENT OR ANY DOCUMENT EXECUTED BY SUCH SELLER PARTY
      PURSUANT TO THIS AGREEMENT SHALL BE BROUGHT ONLY IN A COURT IN NEW YORK, NEW
      YORK.

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    Section
      13.11  WAIVER
      OF JURY TRIAL. 

     

    EACH
      PARTY HERETO HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING,
      DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR
      OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS
      AGREEMENT, ANY DOCUMENT EXECUTED BY ANY SELLER PARTY PURSUANT TO THIS AGREEMENT
      OR THE RELATIONSHIP ESTABLISHED HEREUNDER OR THEREUNDER.

     

    Section
      13.12  Integration;
      Binding Effect; Survival of Terms.

     

    (a)  This
      Agreement and each other Transaction Document contain the final and complete
      integration of all prior expressions by the parties hereto with respect to
      the
      subject matter hereof and shall constitute the entire agreement among the
      parties hereto with respect to the subject matter hereof superseding all prior
      oral or written understandings.

     

    (b)  This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and permitted assigns (including any trustee
      in
      bankruptcy). This Agreement shall create and constitute the continuing
      obligations of the parties hereto in accordance with its terms and shall remain
      in full force and effect until terminated in accordance with its terms;
provided,
      however,
      that
      the rights and remedies with respect to (i)
      any
      breach of any representation and warranty made by the Seller Parties pursuant
      to
Article
      V,
      (ii)
      the
      indemnification and payment provisions of Article
      X,
      and the
      provisions of Section
      13.4
      through
      and including Section
      13.58
      shall be
      continuing and shall survive any termination of this Agreement.

     

    (c)  Each
      of
      the Seller Parties, TPF and the Administrator hereby acknowledges and agrees
      that the Liquidity Banks are hereby made express third party beneficiaries
      of
      this Agreement and each of the other Transaction Documents.

     

    Section
      13.13  Counterparts;
      Severability; Section References. 

     

    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 when taken together shall constitute one
      and
      the same Agreement. Delivery of an executed counterpart of a signature page
      to
      this Agreement by fax or other means of electronic transmission shall be
      effective as delivery of a manually executed counterpart of a signature page
      to
      this Agreement. Any provisions of this Agreement which are prohibited or
      unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
      to the extent of such prohibition or unenforceability without invalidating
      the
      remaining provisions hereof, and any such prohibition or unenforceability in
      any
      jurisdiction shall not invalidate or render unenforceable such provision in
      any
      other jurisdiction. Unless otherwise expressly indicated, all references herein
      to “Article,”“Section,”“Schedule” or “Exhibit” shall mean articles and sections
      of, and schedules and exhibits to, this Agreement.

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    Section
      13.14  Characterization.

     

    (a)  It
      is the
      intention of the parties hereto that, other than for federal, state and local
      income and franchise tax purposes, each Purchase hereunder shall constitute
      and
      be treated as an absolute and irrevocable sale, which Purchase shall provide
      the
      TPF with the full benefits of ownership of the applicable Receivable Interest.
      Except as specifically provided in this Agreement, each sale of a Receivable
      Interest hereunder is made without recourse to the Seller; provided,
      however,
      that
(i)
      the
      Seller shall be liable to TPF and the Administrator for all representations,
      warranties, covenants and indemnities made by the Seller pursuant to the terms
      of this Agreement, and (ii)
      such
      sale does not constitute and is not intended to result in an assumption by
      TPF
      or the Administrator or any assignee thereof of any obligation of the Seller
      or any
      Originator or any other person arising in connection with the Receivables,
      the
      Related Security, or the related Contracts, or any other obligations of the
      Seller or any Originator.
      It is
      the intention of the parties hereto that for federal, state and local income
      and
      franchise tax purposes TPF’s acquisition of the Receivable Interests shall be
      treated as a secured loan by TPF to the Seller, and each party hereto agrees
      to
      characterize all Purchases hereunder as secured loans on all tax returns filed
      by such party

     

    (b)  In
      addition to any ownership interest which the Administrator or TPF may from
      time
      to time acquire pursuant hereto, the Seller hereby grants to the Administrator
      for the ratable benefit of TPF a valid security interest in all of the Seller’s
      right, title and interest, whether now owned or hereafter acquired, in, to
      and
      under all Receivables now existing or hereafter arising, the Collections, each
      Lock-Box, each Collection Account, all Related Security, all other rights and
      payments relating to such Receivables, all proceeds of the foregoing and all
      other assets of the Seller prior to all other liens on and security interests
      therein to secure the prompt and complete payment of the Aggregate Unpaids.
      The
      Administrator, on behalf of TPF, shall have, in addition to the rights and
      remedies that it may have under this Agreement, all other rights and remedies
      provided to a secured creditor under the UCC and other applicable law, which
      rights and remedies shall be cumulative.

     

    [signature
      pages follow]

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
      and delivered by their duly authorized officers or attorneys-in-fact as of
      the
      date hereof.

     

    ARCH
      CHEMICALS RECEIVABLES CORP.

     

    By:/s/
      W.
      Paul Bush    

    Name: W.
      Paul Bush    

    Title: Vice
      President and Treasurer  

    Address:

    US
      Mail:

    c/o
      Arch
      Chemicals, Inc.

    501
      Merritt 7

    P.O.
      Box
      5204

    Norwalk,
      CT 06856-5204

    

    Hand
      Delivery:

    c/o
      Arch
      Chemicals, Inc.

    501
      Merritt 7

    Norwalk,
      CT 06851

    

    Attention:
      Corporate Secretary

    Phone: (203)
      229-3576

    Fax: (203)
      229-3143

    

    

    

    ARCH
      CHEMICALS, INC.

     

    By:
      /s/
      W. Paul Bush    

    Name: W.
      Paul Bush    

    Title: Treasurer    

    Address:

    

    US
      Mail:

    501
      Merritt 7

    P.O.
      Box
      5204

    Norwalk,
      CT 06856-5204

    

    Hand
      Delivery:

    501
      Merritt 7

    Norwalk,
      CT 06851

    

    Attention:
      Corporate Secretary

    Phone:
      (203) 229-2900

    Fax:
      (203) 229-2713

    

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    

    THREE
      PILLARS FUNDING LLC

    

    By:
      /s/
      Doris J. Hearn    

    Name: Doris
      J. Hearn    

    Title: Vice
      President    

    

    Address:

    Three
      Pillars Funding LLC

    c/o
      AMACAR Group, L.L.C.

    6525
      Morrison Boulevard, Suite 318 

    Charlotte,
      North Carolina 28211

    Attention: Douglas
      K. Johnson

    Phone: 704-365-0569

    Fax: 704-365-1362

    

    

    
      
        
        

      

      
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    SUNTRUST
      CAPITAL MARKETS, INC., as Administrator

By:
      /s/
      James R. Bennison   

    Name: James
      R. Bennison   

    Title: Managing
      Director   

    

    Address:

    SunTrust
      Capital Markets, Inc.

    24th
      Floor, MC3950

    303
      Peachtree Street

    Atlanta,
      Georgia 30308

    Attention: TPF
      Asset
      Management

    Phone: 404-658-4568

    Fax: 404-813-5000

    

     

    
      
        
        

      

      
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    EXHIBIT
      I

    

    DEFINITIONS

    

    As
      used
      in the Agreement and the Exhibits and Schedules thereto, the following terms
      shall have the meanings set forth in this Exhibit I (such meanings to be equally
      applicable to both the singular and plural forms of the terms defined). If
      a
      capitalized term is used in the Agreement, or any Exhibit or Schedule thereto,
      and is not otherwise defined therein or in this Exhibit
      I,
      such
      term shall have the meaning assigned thereto in Exhibit
      I
      to the
      Receivables Sale Agreement (hereinafter defined).

     

    Accounts
      Receivable Turnover Ratio:
      As of
      any Cut-Off Date, the ratio computed by dividing (a) the aggregate amount of
      Receivables generated during the 12 Calculation Periods ending on such Cut-Off
      Date by (b) the average of the aggregate Outstanding Balance of all Receivables
      as of the last 12 Cut-Off Dates;
      provided
      that in
      no event shall any Excluded Receivable be included in the numerator or
      denominator of the foregoing computation.

     

    Adjusted
      Dilution Ratio:
      At any
      time, the rolling average of the Dilution Ratio for the 12 Calculation Periods
      then most recently ended.

     

    Administrator:
      As
      defined in the preamble to this Agreement.

     

    Administrator’s
      Account:
      Administrator’s Account # XXXXXX,
      ABA No. XXXXXX, at SunTrust Bank’s office at 25 Park Place, in Atlanta, Georgia,
      Attn: Mary Hinsberg, Reference: Three Pillars Funding LLC/Arch
      Chemicals Receivables Corp. Transaction.

     

    Adverse
      Claim:
      A lien,
      security interest, charge or encumbrance, or other right or claim in, of or
      on
      any Person’s assets or properties in favor of any other Person.

     

    Affiliate:
      With
      respect to any Person, any other Person directly or indirectly controlling,
      controlled by, or under direct or indirect common control with, such Person
      or
      any Subsidiary of such Person. A Person shall be deemed to control another
      Person if the controlling Person owns 10% or more of any class of voting
      securities of the controlled Person or possesses, directly or indirectly, the
      power to direct or cause the direction of the management or policies of the
      controlled Person, whether through ownership of stock, by contract or
      otherwise.

     

    Aggregate
      Invested Amount:
      On any
      date of determination, the aggregate Invested Amount of all Receivable Interests
      outstanding on such date.

     

    Aggregate
      Reduction:
      As
      defined in Section
      1.3(b).

     

    Aggregate
      Unpaids:
      At any
      time, an amount equal to the sum of (i)
      the
      Aggregate Invested Amount, plus (ii)
      all
      Recourse Obligations (whether due or accrued) at such time.

     

    Agreement:
      This
      Receivables Purchase Agreement, as it may be amended or modified and in effect
      from time to time.

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

    Alternate
      Base Rate:
      For any
      day, the rate per annum equal to the sum of (a) the higher as of such day of
      (i)
      the
      Prime Rate, or (ii)
      one-half
      of one percent (0.50%) above the Federal Funds Effective Rate, plus (b) the
      Applicable Margin. For purposes of determining the Alternate Base Rate for
      any
      day, changes in the Prime Rate or the Federal Funds Effective Rate shall be
      effective on the date of each such change.

     

    Amortization
      Date:
      The
      earliest to occur of (i)
      the day
      on which any of the conditions precedent set forth in Section
      6.2
      are not
      satisfied, (ii)
      the
      Business Day immediately prior to the occurrence of an Event of Bankruptcy
      with
      respect to a Seller Party, (iii)
      the
      Business Day specified in a written notice from the Administrator following
      the
      occurrence of any other Amortization Event, and (iv)
      the date
      which is ten (10) Business Days after the Administrator’s receipt of written
      notice from the Seller that it wishes to terminate the facility evidenced by
      this Agreement.

     

    Amortization
      Event:
      As
      defined in Article
      IX.

     

    Applicable
      Margin:
      As
      defined in the Fee Letter.

     

    Authorized
      Officer:
      With
      respect to any Person, its president, chief executive officer, any vice
      president, corporate controller, treasurer or chief financial
      officer.

     

    Broken
      Funding Costs:
      For any
      Receivable Interest which: (i)
      is
      funded with Pooled Commercial Paper and has its Invested Amount reduced without
      compliance by the Seller with the notice requirements hereunder, or which is
      funded with other Commercial Paper and has its Investment Amount reduced on
      any
      date other than a Settlement Date, or (ii)
      does not
      become subject to an Aggregate Reduction following the delivery of any Reduction
      Notice or (iii)
      is
      assigned by TPF to the Liquidity Banks under the Liquidity Agreement or
      terminated prior to the date on which it was originally scheduled to end; an
      amount equal to the excess, if any, of (A)
      the CP
      Costs or Yield (as applicable) that would have accrued during the remainder
      of
      the Interest Periods or the tranche periods for Commercial Paper determined
      by
      the Administrator to relate to such Receivable Interest (as applicable)
      subsequent to the date of such reduction, assignment or termination (or in
      respect of clause
      (ii)
      above,
      the date such Aggregate Reduction was designated to occur pursuant to the
      Reduction Notice) of the Invested Amount of such Receivable Interest if such
      reduction, assignment or termination had not occurred or such Reduction Notice
      had not been delivered, over (B)
      the sum
      of (1)
      to the
      extent all or a portion of such Invested Amount is allocated to another
      Receivable Interest, the amount of CP Costs or Yield actually accrued during
      the
      remainder of such period on such Invested Amount for the new Receivable
      Interest, and (2)
      to the
      extent such Invested Amount is not allocated to another Receivable Interest,
      the
      income, if any, actually received during the remainder of such period by the
      holder of such Receivable Interest from investing the portion of such Invested
      Amount not so allocated.

     

    Business
      Day:
      Any day
      on which banks are not authorized or required to close in New York, New York
      or
      Atlanta, Georgia, and The Depository Trust Company of New York is open for
      business, and, if the applicable Business Day relates to any computation or
      payment to be made with respect to the LIBO Rate, any day on which dealings
      in
      dollar deposits are carried on in the London interbank market.

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

    Calculation
      Period:
      A
      calendar month.

     

    Change
      of Control:
      (i)
      the
      acquisition by any Person, or two or more Persons acting in concert, of
      beneficial ownership (within the meaning of Rule 13d-3 of the Securities and
      Exchange Commission under the Securities Exchange Act of 1934) of 51% or more
      of
      the outstanding shares of voting stock entitled to elect a majority of the
      board
      of directors of Arch, or (ii)
      Arch
      ceases to own 100% of the outstanding shares of voting stock of the
      Seller.

     

    Charge-Offs:
      All
      Receivables (other than Excluded Receivables) not previously deemed Defaulted
      Receivables that are written off by the Servicer or should, in accordance with
      the Credit and Collection Policy, be written off as uncollectible.

     

    Closing
      Date:
      June
      27, 2005.

     

    Collateral
      Certificate:
      A
      certificate, in substantially the form of Exhibit
      IX
      hereto
      (appropriately completed), furnished by the Servicer to the Administrator
      pursuant to Section
      8.5.

     

    Collection
      Account:
      Each
      concentration account, depositary account, lock-box account or similar account
      in which any Collections are collected or deposited and which is listed on
      Exhibit
      IV.

     

    Collection
      Account Agreement:
      An
      agreement in form reasonably acceptable to the Administrator among an
      Originator, Servicer, the Seller, the Administrator and a Collection Bank
      establishing control over a Collection Account.

     

    Collection
      Bank:
      At any
      time, any of the banks holding one or more Collection Accounts.

     

    Collection
      Notice:
      A
      notice, in substantially the form attached to a Collection Account Agreement
      from the Administrator to a Collection Bank.

     

    Collections:
      With
      respect to any Receivable, all cash collections and other cash proceeds in
      respect of such Receivable, including, without limitation, all Finance Charges
      or other related amounts accruing in respect thereof and all cash proceeds
      of
      Related Security with respect to such Receivable.

     

    Commercial
      Paper:
      Promissory notes of TPF issued by TPF in the commercial paper market
to
      fund
      the Receivable Interests or any portion thereof.

     

    Concentration
      Limit:

     

    (a)
      For
      any Obligor whose short term unsecured debt ratings are (i) at least both “A-1”
      from S&P and“P-1”
      from Moody’s, 12.0% of the aggregate
      Outstanding Balance of all Eligible Receivables;
      or (ii)
      at least both “A-2” from S&P and“P-2”
      from Moody’s, 6.0% of the aggregate
      Outstanding Balance of all Eligible Receivables;
      or

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

    (b)
      For
      any Obligor who does not have short term unsecured debt ratings from both
      S&P and Moody’s of at least the levels set forth in clause (a)(ii) above but
      who has long term unsecured debt ratings from both S&P and Moody’s which are
      (i) greater than or equal to both “A” by S&P and“A2”
      by
      Moody’s, 12.0% of the
      of the
      aggregate Outstanding Balance of all Eligible Receivables;
      or (ii)
      greater than or equal to both “BBB-” by S&P and“Baa3”
      by
      Moody’s and less than or equal to “A-” by S&P and“A3”
      by
      Moody’s, 6.0% of the aggregate
      Outstanding Balance of all Eligible Receivables;

     

    (c)
      For
      any Special Obligor, 20.0% of the aggregate Outstanding Balance of all Eligible
      Receivables;

     

    (d)
      For
      any Obligor not covered by clause (a), (b) or (c) of this definition, 3.0%
      of
      the aggregate Outstanding Balance of all Eligible Receivables;

     

    (e)
      For
      all Canadian Obligors in the aggregate, 5.0% of the aggregate Outstanding
      Balance of all Eligible Receivables;

     

    (f)
      For
      all Permitted Government Receivables, 3.0% of the aggregate Outstanding Balance
      of all Eligible Receivables;

     

    (g)
      For
      all Receivables with terms allowing for payment within 91-120 days after invoice
      date, 5.0% of the aggregate Outstanding Balance of all Eligible
      Receivables;

     

    provided
      that
      (1)
      the limitations set forth in the foregoing clauses (a)-(d) shall apply to each
      specified Obligor and its Affiliates, considered as if they were one and the
      same Person, and (2) in the event that any Obligor has both long-term and
      short-term unsecured debt ratings from both S&P and Moody’s that are covered
      under the foregoing clauses (a) and (b), the short-term debt ratings under
      clause (a) above shall control.

     

    Confidential
      Contracts:
      Those
      Contracts which require that their existence or terms not be disclosed to third
      parties, including TPF or the Administrator.

     

    Contingent
      Obligation:
      Of a
      Person means any agreement, undertaking or arrangement by which such Person
      assumes, guarantees, endorses, contingently agrees to purchase or provide funds
      for the payment of, or otherwise becomes or is contingently liable upon, the
      obligation or liability of any other Person, or agrees to maintain the net
      worth
      or working capital or other financial condition of any other Person, or
      otherwise assures any creditor of such other Person against loss, including,
      without limitation, any comfort letter, operating agreement, take-or-pay
      contract or application for a letter of credit.

     

    Contract:
      With
      respect to any Receivable, any and all instruments, agreements, invoices or
      other writings pursuant to which such Receivable arises or which evidences
      such
      Receivable.

     

    
      
        
        

      

      
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    CP
      Costs:
      For
      each day, the sum of (i)
      discount
      or interest accrued on that portion of TPF’s Commercial Paper that is allocated
      to fund the Receivable Interests or any part thereof for such day, plus
(ii)
      any and
      all accrued commissions in respect of placement agents and commercial paper
      dealers, and issuing and paying agent fees incurred, in respect of such
      Commercial Paper for such day, plus (iii)
      other
      costs associated with funding small or odd-lot amounts with respect to all
      receivable purchase or financing facilities which are funded by such Commercial
      Paper for such day, plus (iv) the Applicable Margin, minus (v) any accrual
      of
      income net of expenses received on such day from investment of collections
      received under all receivable purchase or financing facilities funded
      substantially with such Commercial Paper for such day, minus (vi) any payment
      received on such day net of expenses in respect of Broken Funding Costs related
      to the prepayment of any investment of TPF pursuant to the terms of any
      receivable purchase or financing facilities funded substantially with such
      Commercial Paper. In addition to the foregoing costs, if the Seller shall
      request any Purchase during any period of time determined by the Administrator
      in its sole discretion to result in incrementally higher CP Costs applicable
      to
      such Purchase, the principal associated with any such Purchase shall, during
      such period, be deemed to be funded by TPF in a special pool (which may include
      capital associated with other receivable purchase or financing facilities)
      for
      purposes of determining such additional CP Costs applicable only to such special
      pool and charged each day during such period against such
      principal.

     

    Credit
      Agreement:
      That
      certain Revolving Credit Agreement, dated as of June 20, 2003, among the
      Servicer, Bank of America National Trust and Savings Association, as Joint
      Lead
      Arranger and Joint Book Manager, Bank of America, N.A. (successor by merger
      to
      Fleet National Bank) as Syndication Agent, the lenders party thereto, and
      JPMorgan Chase Bank, N.A., as Administrative Agent, as amended to
      date.

     

    Credit
      and Collection Policy:
      The
      Seller’s credit and collection policies and practices relating to Contracts and
      Receivables existing on the date hereof and summarized in Exhibit
      VII
      hereto,
      as modified from time to time in accordance with this Agreement.

     

    Credit
      Advance:
      A
      drawing under a letter of credit issued pursuant to a TPF Credit Agreement
      for
      the account of TPF, a loan to TPF under a TPF Credit Agreement or any other
      advance or disbursement of funds to TPF or for TPF’s account pursuant to a TPF
      Credit Agreement or any such letter of credit, in each case to the extent such
      drawing, loan, advance or disbursement has not been repaid or reimbursed to
      Credit Bank in accordance with the related TPF Credit Agreement.

     

    Credit
      Bank:
      SunTrust Bank and any other or additional bank or other Person (other than
      the
      Seller or other customer of TPF or any liquidity provider as such) now or
      hereafter extending credit or a purchase commitment to or for the account of
      TPF
      or issuing a letter of credit, surety bond or other instrument, in each case
      to
      support any obligations arising under or in connection with TPF’s commercial
      paper program.

     

    Cut-Off
      Date:
      The
      last day of a Calculation Period.

     

    Days
      Sales Outstanding Ratio:
      On any
      date of determination, the ratio computed as of the most recent Cut-Off Date
      by
      dividing (a) 360 by (b) the Accounts Receivable Turnover Ratio for the
      Calculation Period ending on such Cut-Off Date.

     

    Deemed
      Collections:
      Collections deemed received by the Seller under 0.

     

    Default
      Horizon Ratio:
      As of
      any Cut-Off Date, the ratio (expressed as a decimal) computed by dividing (a)
      the sum of (i)
      the
      aggregate Receivables (other than Excluded Receivables) generated by the
      Originators during the four (4) Calculation Periods ending on such Cut-Off
      Date,
      plus (ii) the Weighted Average Credit Percentage multiplied by the aggregate
      Receivables (other than Excluded Receivables) generated by the Originators
      during the Calculation Period ending four (4) months prior to such Cut-Off
      Date,
      by (b) the Net Pool Balance as of such Cut-Off Date.

     

    
      
        
        

      

      
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    Default
      Rate:
      A rate
      per annum equal to the sum of (i)
      the
      Alternate Base Rate plus (ii)
      1.60%,
      changing when and as the Alternate Base Rate changes.

     

    Default
      Ratio:
      As of
      any Cut-Off Date, the ratio (expressed as a percentage) computed by dividing
      (i)
      the
      total amount (without double-counting) of Receivables (other than Excluded
      Receivables) which became Defaulted Receivables or Charge-Offs during the
      Calculation Period that includes such Cut-Off Date, by (b) the aggregate
      Receivables (other than Excluded Receivables) generated by the Originators
      during the Calculation Period occurring six (6) months prior to the Calculation
      Period ending on such Cut-Off Date.

     

    Defaulted
      Receivable:
      A
      Receivable (other than an Excluded Receivable): (i)
      as to
      which the Obligor thereof has suffered an Event of Bankruptcy; (ii)
      which,
      consistent with the Credit and Collection Policy, would be written off the
      Seller’s books as uncollectible; or (iii)
      as to
      which any payment, or part thereof, remains unpaid for 121 days or more from
      the
      original due date for such payment.

     

    Delinquency
      Ratio:
      At any
      time, a percentage equal to (i)
      the
      aggregate Outstanding Balance of all Receivables (other than Excluded
      Receivables) that were Delinquent Receivables at such time divided by
(ii)
      the
      aggregate Outstanding Balance of all Receivables (other than Excluded
      Receivables) at such time.

     

    Delinquent
      Receivable:
      A
      Receivable (other than an Excluded Receivable) as to which any payment, or
      part
      thereof, remains unpaid for 91-120 days from the original due date for such
      payment.

     

    Dilution:
      The
      amount of any reduction or cancellation of the Outstanding Balance of a
      Receivable (other than an Excluded Receivable) as described in Section
      1.4.

     

    Dilution
      Horizon Ratio:
      As of
      any Cut-Off Date, a ratio (expressed as a decimal), computed by dividing
(i)
      the
      aggregate Receivables (other than Excluded Receivables) generated by the
      Originators during the two previous Calculation Periods ending on such Cut-Off
      Date, by (ii)
      the Net
      Pool Balance as of such Cut-Off Date.

     

    Dilution
      Ratio:
      As of
      any Cut-Off Date, a ratio (expressed as a percentage), computed by dividing
      (i)
      the
      total amount of decreases in Outstanding Balances due to Dilutions during the
      Calculation Period ending on such Cut-Off Date, by (ii)
      the
      aggregate Receivables (other than Excluded Receivables) generated by the
      Originators during the second preceding Calculation Period prior to such Cut-Off
      Date.

     

    Dilution
      Reserve:
      On any
      date of determination, computed as of the most recent Cut-Off Date, the product
      of (a) the sum of (i) the product of (x) the Stress Factor times
      (y) the
      Adjusted Dilution Ratio plus
      (ii) the
      Dilution Volatility Component times
      (b) the
      Dilution Horizon Ratio.

     

    
      
        
        

      

      
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    Dilution
      Volatility Component:
      The
      product (expressed as a percentage) of (i)
      the
      difference between (A)
      the
      highest two (2)-month rolling average Dilution Ratio over the past 12
      Calculation Periods and (B)
      the
      Adjusted Dilution Ratio, and (ii)
      a
      fraction, the numerator of which is equal to the amount calculated in
(i)(A)
      of this
      definition and the denominator of which is equal to the amount calculated in
      (i)(B)
      of this
      definition.

     

    Downgraded
      Liquidity Bank:
      A
      Liquidity Bank which has been the subject of a Downgrading Event.

     

    Downgrading
      Event:
      With
      respect to any Person means the lowering of the rating with regard to the
      short-term securities of such Person to below (i)
      A-1 by
      S&P, or (ii)
      P-1 by
      Moody’s.

     

    Eligible
      Assignee:
      A
      commercial bank having a combined capital and surplus of at least $250,000,000
      with a rating of its (or its parent holding company’s) short-term securities
      equal to or higher than (i)
      A-1 by
      S&P and (ii)
      P-1 by
      Moody’s.

     

    Eligible
      Province or Territory:
      Ontario, British Columbia, Prince Edward Island, Saskatchewan, Alberta and
      The
      Yukon.

     

    Eligible
      Receivable:
      At any
      time, a Receivable:

     

    (i)  the
      Obligor of which (A)
      if a
      natural person, is a resident of the United States or an Eligible Province
      or
      Territory, or, if a corporation or other business organization, is organized
      under the laws of the United States or any political subdivision thereof and
      has
      its chief executive office in the United States or under the laws of Canada
      or
      any Eligible Province or Territory and has its chief executive office in an
      Eligible Province or Territory, and (B)
      is not
      an Affiliate of any of the parties hereto,

     

    (ii)  that
      arises under a Contract, 

     

    (iii)  which
      is
      not a Defaulted Receivable and which is not more than 60 days past
      due,

     

    (iv)  which
      is
      not a Government Receivable
      other
      than a Permitted Government Receivable,

     

    (v)  which
      by
      its terms is due and payable within 120 days of the original billing date
      therefor and has not had its payment terms extended more than once,

     

    (vi)  which
      is
      an “account” within the meaning of Section 9-102(a)(2) of the UCC of all
      applicable jurisdictions,

     

    (vii)  which
      is
      denominated and payable only in United States dollars or Canadian dollars in
      the
      United States or Canada,

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

    (viii)  which
      arises under a Contract which, together with such Receivable, is in full force
      and effect and constitutes the legal, valid and binding obligation of the
      related Obligor enforceable against such Obligor in accordance with its
      terms,

     

    (ix)  which
      arises under a Contract that contains an obligation to pay a specified sum
      of
      money, contingent only upon the sale of goods or the provision of services
      by
      the applicable Originator,

     

    (x)  which,
      together with the Contract related thereto, does not contravene any law, rule
      or
      regulation applicable thereto (including, without limitation, any law, rule
      and
      regulation relating to truth in lending, fair credit billing, fair credit
      reporting, equal credit opportunity, fair debt collection practices and privacy)
      and with respect to which no part of the Contract related thereto is in
      violation of any such law, rule or regulation except any such contravention
      or
      violation which does not have an adverse effect on the Receivables,

     

    (xi)  which
      satisfies all applicable requirements of the Credit and Collection
      Policy,

     

    (xii)  which
      was
      generated in the ordinary course of the applicable Originator’s
      business,

     

    (xiii)  which
      arises from the sale of goods, or the provision of services, to the related
      Obligor by the applicable Originator, and except for incidental amounts,
      relating to, for example the delivery or shipment of the related goods to the
      Obligor, not from the sale of goods or provision of services by any other Person
      (in whole or in part),

     

    (xiv)  which
      is
      not subject to any current dispute, right of rescission, set-off, counterclaim
      or any other defense (including defenses arising out of violations of usury
      laws) of the applicable Obligor against the applicable Originator or any other
      Adverse Claim, and the Obligor thereon holds no right as against such Originator
      to cause such Originator to repurchase the goods or merchandise the sale of
      which shall have given rise to such Receivable (except with respect to sale
      discounts effected pursuant to the Contract, or defective goods returned in
      accordance with the terms of the Contract); provided,
      however,
      that if
      such dispute, offset, counterclaim or defense affects only a portion of the
      Outstanding Balance of such Receivable, then such Receivable may be deemed
      an
      Eligible Receivable to the extent of the portion of such Outstanding Balance
      which is not so affected, and provided, further, that Receivables of any Obligor
      which has any accounts payable by the applicable Originator or by a wholly-owned
      Subsidiary of such Originator (thus giving rise to a potential offset against
      such Receivables) may be treated as Eligible Receivables to the extent that
      the
      Obligor of such Receivables has agreed pursuant to a written agreement in form
      and substance satisfactory to the Administrator, that such Receivables shall
      not
      be subject to such offset,

     

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

    (xv)  as
      to
      which the applicable Originator has satisfied and fully performed all
      obligations on its part with respect to such Receivable required to be fulfilled
      by it, and no further action is required to be performed by any Person with
      respect thereto other than payment thereon by the applicable
      Obligor,

     

    (xvi)  as
      to
      which each of the representations and warranties contained in Section
      5.1(g),
      Section
      5.1(i),
      Section
      5.1(j),
      Section
      5.1(r),
      Section
      5.1(s),
      Section
      5.1(t)
      and
Section
      5.1(u)
      is true
      and correct; and

     

    (xvii)  all
      right, title and interest to and in which has been validly transferred by the
      applicable Originator directly to the Seller under and in accordance with the
      Receivables Sale Agreement, and the Seller has good and marketable title thereto
      free and clear of any Adverse Claim.

     

    ERISA:
      The
      Employee Retirement Income Security Act of 1974, as amended from time to time,
      and any rule or regulation issued thereunder.

     

    ERISA
      Affiliate:
      Any
      trade or business (whether or not incorporated) under common control with Arch
      within the meaning of Section 414(b) or (c) of the Tax Code (and Sections 414(m)
      and (o) of the Tax Code for purposes of provisions relating to Section 412
      of
      the Tax Code).

     

    Event
      of Bankruptcy:
      Shall
      be deemed to have occurred with respect to a Person if either:

     

    (i)  a
      case or
      other proceeding shall be commenced, without the application or consent of
      such
      Person, in any court, seeking the liquidation, reorganization, debt arrangement,
      dissolution, winding up, or composition or readjustment of debts of such Person,
      the appointment of a trustee, receiver, custodian, liquidator, assignee,
      sequestrator or the like for such Person or all or substantially all of its
      assets, or any similar action with respect to such Person under any law relating
      to bankruptcy, insolvency, reorganization, winding up or composition or
      adjustment of debts, and such case or proceeding shall continue undismissed,
      or
      unstayed and in effect, for a period of 60 consecutive days; or an order for
      relief in respect of such Person shall be entered in an involuntary case under
      the federal bankruptcy laws or other similar laws now or hereafter in effect;
      or

     

    (ii)  such
      Person shall commence a voluntary case or other proceeding under any applicable
      bankruptcy, insolvency, reorganization, debt arrangement, dissolution or other
      similar law now or hereafter in effect, or shall consent to the appointment
      of
      or taking possession by a receiver, liquidator, assignee, trustee (other than
      a
      trustee under a deed of trust, indenture or similar instrument), custodian,
      sequestrator (or other similar official) for, such Person or for any substantial
      part of its property, or shall make any general assignment for the benefit
      of
      creditors, or shall be adjudicated insolvent, or admit in writing its inability
      to pay its debts generally as they become due, or, if a corporation or similar
      entity, its board of directors shall vote to implement any of the
      foregoing.

     

    
      
        
        

      

      
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    Excess
      Concentration Amount:
      At any
      time with respect to any Obligor, group of Obligors or group of Receivables
      described in clauses (a)-(g) of the definition of “Concentration
      Limit”
      (but
      without duplication), the amount, if any, by which the aggregate Outstanding
      Balance of all Eligible Receivables of such Obligor, group of Obligors, or
      group
      of Receivables, exceeds the Concentration Limit for such Obligor in each case,
      at such time.

     

    Excluded
      Receivable:
      Any
      Receivable as to which the Obligor (a) if a natural person, is a resident of
      a
      province of territory of Canada that is not an Eligible Province or Territory,
      or, (b) if a corporation or other business organization, is organized under
      the
      laws of a province or territory of Canada (other than an Eligible Province
      or
      Territory) or any political subdivision thereof and has its chief executive
      office in a province or territory of Canada (other than an Eligible Province
      or
      Territory).

     

    Facility
      Account:
      The
      Seller’s account no. XXXXXX at SunTrust Bank.

     

    Facility
      Termination Date:
      The
      earliest to occur of (i)
      the
      Liquidity Termination Date, (ii)
      the
      Amortization Date, and (iii) July 7, 2008.

     

    Federal
      Bankruptcy Code:
      Title
      11 of the United States Code entitled “Bankruptcy,” as amended and any successor
      statute thereto.

     

    Federal
      Funds Effective Rate:
      For any
      period, a fluctuating interest rate per annum for each day during such period
      equal to (i)
      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 preceding
      Business Day) by the Federal Reserve Bank of New York in the Composite Closing
      Quotations for U.S. Government Securities; or (ii)
      if such
      rate is not so published for any day which is a Business Day, the average of
      the
      quotations at approximately 11:30 a.m. (New York time) for such day on such
      transactions received by the Administrator from three federal funds brokers
      of
      recognized standing selected by it.

     

    Fee
      Letter:
      That
      certain letter agreement dated as of the date hereof among the Seller, Arch
      and
      the Administrator, as it may be amended, restated or otherwise modified and
      in
      effect from time to time.

     

    Final
      Payout Date:
      The
      date on which all Aggregate Unpaids have been paid in full and the Purchase
      Limit has been reduced to zero.

     

    Finance
      Charges:
      With
      respect to a Contract, any finance, interest, late payment charges or similar
      charges owing by an Obligor pursuant to such Contract.

     

    Foreign
      Currency Reserve:
      An
      amount equal to 10% of the U.S. dollar spot market-equivalent of all Eligible
      Receivables otherwise included in the Net Pool Balance which are denominated
      in
      Canadian dollars.

     

    Funding
      Agreement:
      (i)
      the
      Voluntary Advance Agreement, (ii)
      the
      Liquidity Agreement and (iii)
      any
      other agreement or instrument executed by any Funding Source with or for the
      benefit of TPF.

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

    Funding
      Source:
      (i) any
      Credit Bank, (ii) any Liquidity Bank, or (iii) any insurance company, bank
      or
      other funding entity providing liquidity, credit enhancement or back-up purchase
      support or facilities to TPF.

     

    GAAP:
      Generally accepted accounting principles in effect in the United States of
      America as in effect from time to time.

     

    Government
      Receivable:
      A
      Receivable as to which the Obligor is any nation or government, any federal,
      state, local or other political subdivision thereof and any entity exercising
      executive, legislative, judicial, regulatory or administrative authority or
      functions of or pertaining to government including any authority or other
      quasi-governmental entity established to perform any of such
      functions.

     

    Incremental
      Purchase:
      A
      purchase of one or more Receivable Interests which increases the total
      outstanding Aggregate Invested Amount hereunder.

     

    Indebtedness:
      Of a
      Person means such Person’s (i)
      obligations for borrowed money, (ii)
      obligations representing the deferred purchase price of property or services
      (other than accounts payable arising in the ordinary course of such Person’s
      business payable on terms customary in the trade), (iii)
      obligations, whether or not assumed, secured by liens or payable out of the
      proceeds or production from property now or hereafter owned or acquired by
      such
      Person, (iv)
      obligations which are evidenced by notes, acceptances, or other instruments,
      (v)
      capitalized lease obligations, (vi)
      net
      liabilities under interest rate swap, exchange or cap agreements, (vii)
      Contingent Obligations and (viii)
      liabilities in respect of unfunded vested benefits under plans covered by Title
      IV of ERISA.

     

    Indemnified
      Amounts:
      As
      defined in Section
      10.1(a).

     

    Indemnified
      Party:
      As
      defined in Section
      10.1(a).

     

    Independent
      Director:
      A
      member of the Board of Directors of the Seller who is not at such time, and
      has
      not been at any time during the preceding five (5) years: (i)
      a
      director, officer, employee or affiliate of any Originator or any of their
      respective Subsidiaries or Affiliates (other than the Seller), or (ii)
      the
      beneficial owner (at the time of such individual’s appointment as an Independent
      Director or at any time thereafter while serving as an Independent Director)
      of
      any of the outstanding common shares of the Seller, any Originator, or any
      of
      their respective Subsidiaries or Affiliates, having general voting
      rights.

     

    Interest
      Period:
      With
      respect to any Receivable Interest funded through a Liquidity
      Funding:

     

    (i)  if
      Yield
      for such Receivable Interest is calculated on the basis of the LIBO Rate, a
      period of one, two, three or six months, or such other period as may be mutually
      agreeable to the Administrator and the Seller, commencing on a Business Day
      selected by the Seller or the Administrator pursuant to this Agreement. Such
      Interest Period shall end on the day in the applicable succeeding calendar
      month
      which corresponds numerically to the beginning day of such Interest Period,
      provided, however, that if there is no such numerically corresponding day in
      such succeeding month, such Interest Period shall end on the last Business
      Day
      of such succeeding month; or

     

    
      
        
        

      

      
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    (ii)  if
      Yield
      for such Receivable Interest is calculated on the basis of the Alternate Base
      Rate, a period commencing on a Business Day selected by the Seller and agreed
      to
      by the Administrator, provided that no such period shall exceed one
      month.

     

    If
      any
      Interest Period would end on a day which is not a Business Day, such Interest
      Period shall end on the next succeeding Business Day, provided, however, that
      in
      the case of Interest Periods corresponding to the LIBO Rate, if such next
      succeeding Business Day falls in a new month, such Interest Period shall end
      on
      the immediately preceding Business Day. In the case of any Interest Period
      which
      commences before the Facility Termination Date and would otherwise end on a
      date
      occurring after the Facility Termination Date, such Interest Period shall end
      on
      the Facility Termination Date. The duration of each Interest Period which
      commences after the Facility Termination Date shall be of such duration as
      selected by the Administrator.

     

    Invested
      Amount:
      Of any
      Receivable Interest means, at any time, (i)
      the
      Purchase Price of such Receivable Interest, minus (ii)
      the sum
      of the aggregate amount of Collections and other payments received by the
      Administrator which in each case are applied to reduce such Invested Amount
      in
      accordance with the terms and conditions of this Agreement; provided that such
      Invested Amount shall be restored (in accordance with Section
      2.5)
      in the
      amount of any Collections or other payments so received and applied if at any
      time the distribution of such Collections or payments are rescinded, returned
      or
      refunded for any reason.

     

    LIBO
      Rate:
      For any
      Interest Period, the rate per annum determined on the basis of (i) the offered
      rate for deposits in U.S. dollars of amounts equal or comparable to the Invested
      Amount offered for a term comparable to such Interest Period, which rates appear
      on Telerate page 3750 (or any successor page) effective as of 11:00 A.M., London
      time, two Business Days prior to the first day of such Interest Period (the
      “Rate
      Setting Day”)
      or if
      such rate is unavailable, the
      rate
per
      annum
      (rounded
      upwards, if necessary, to the nearest 1/100th of one percent) based on the
      rates
      at which deposits in U.S. dollars for one month are displayed on page
“LIBOR”
      of the
      Reuters Screen as of 11:00 a.m. (London time) on the Rate Setting Day (it being
      understood that if at least two (2) such rates appear on such page, the rate
      will be the arithmetic mean of such displayed rates),
      provided that if no such offered rates appear on such pages, the LIBO Rate
      for
      such Interest Period will be the arithmetic average (rounded upwards, if
      necessary, to the next higher 1/100th of 1%) of rates quoted by not less than
      two major banks in New York, New York, selected by the Administrator, at
      approximately 10:00 a.m.(New York time), two Business Days prior to the first
      day of such Interest Period, for deposits in U.S. dollars offered by leading
      European banks for a period comparable to such Interest Period in an amount
      comparable to the Invested Amount, divided by (ii) one minus the maximum
      aggregate reserve requirement (including all basic, supplemental, marginal
      or
      other reserves) which is imposed against the Administrator in respect of
      Eurocurrency liabilities, as defined in Regulation D of the Board of Governors
      of the Federal Reserve System as in effect from time to time (expressed as
      a
      decimal), applicable to such Interest Period plus (iii) the Applicable Margin.
      

     

    
      
        
        

      

      
        58

        
          

        

      

      
        
        

      

    

    Liquidity
      Agreement:
      That
      certain Liquidity Asset Purchase Agreement dated as of the date hereof by and
      among TPF, the Administrator, SunTrust Bank, as liquidity agent, and the banks
      from time to time party thereto, as the same may be amended, restated and/or
      otherwise modified from time to time in accordance with the terms
      thereof.

     

    Liquidity
      Bank:
      Each
      bank from time to time party to the Liquidity Agreement (other than the
      Administrator acting in its capacity as the Administrator
      thereunder).

     

    Liquidity
      Commitment:
      As to
      each Liquidity Bank, its commitment under the Liquidity Agreement. The Liquidity
      Commitments, in the aggregate, shall equal 102% of the greater of (i) the
      Purchase Limit hereunder, and (ii) the Aggregate Invested Amount.

     

    Liquidity
      Funding:
      A
      purchase by any Liquidity Bank pursuant to its Liquidity Commitment of all
      or
      any portion of, or any undivided interest in, a Receivable Interest, or any
      advance under the Voluntary Advance Agreement that is used to fund or maintain
      all or any portion of a Receivable Interest.

     

    Liquidity
      Termination Date:
      The
      earlier to occur of (a) the “Liquidity Termination Date” set forth in the
      Liquidity Agreement, as amended from time to time which date is June 26, 2006
      as
      of the date of this Agreement, and (b) the occurrence of an Event of Bankruptcy
      with respect to TPF.

     

    Lock-Box:
      Each
      locked postal box with respect to which a bank who has executed a Collection
      Account Agreement has been granted exclusive access for the purpose of
      retrieving and processing payments made on the Receivables and which is listed
      on Exhibit
      IV.

     

    Loss
      Reserve:
      For any
      Calculation Period, the product (expressed as a percentage) of (i)
      the
      Stress Factor, times (ii)
      the
      highest three-month rolling average Default Ratio during the 12 Calculation
      Periods ending on the immediately preceding Cut-Off Date, times (iii)
      the
      Default Horizon Ratio as of the immediately preceding Cut-Off Date.

     

    Material
      Adverse Effect:
      A
      material adverse effect on (i)
      the
      financial condition or operations of Arch and its Subsidiaries taken as a whole,
      (ii)
      the
      ability of any Seller Party to perform its obligations under this Agreement,
      (iii)
      the
      legality, validity or enforceability of this Agreement or any other Transaction
      Document, (iv)
      the
      Administrator’s security interest, for the benefit of the Secured Parties, in
      the Receivables generally or in any significant portion of the Receivables,
      the
      Related Security or the Collections with respect thereto, or (v)
      the
      collectibility of the Receivables generally or of any material portion of the
      Receivables.

     

    Material
      Indebtedness:
      As
      defined in Section
      9.1(f)

     

    Monthly
      Report:
      A
      report, in substantially the form of Exhibit
      VIII
      hereto
      (appropriately completed), furnished by the Servicer to the Administrator
      pursuant to Section
      8.5.

     

    Monthly
      Reporting Date:
      The
      15th day of each month after the date of this Agreement (or if any such day
      is
      not a Business Day, the next succeeding Business Day thereafter) or such other
      days of any month as Administrator may request in connection with Section
      8.5
      hereof.

     

    
      
        
        

      

      
        59

        
          

        

      

      
        
        

      

    

    Moody’s:
      Moody’s
      Investors Service, Inc.

     

    Net
      Pool Balance:
      At any
      time, the aggregate Outstanding Balance of all Eligible Receivables at such
      time
      reduced by (i) the Excess Concentration Amount and (ii) the Foreign Currency
      Reserve.

     

    Obligor:
      A
      Person obligated to make payments pursuant to a Contract.

     

    Originator(s):
      Arch
      Chemicals, Inc., a Virginia corporation, Arch Chemicals Specialty Products,
      Inc., a Delaware corporation, Arch Treatment Technologies, Inc., a Virginia
      corporation, Arch Wood Protection, Inc., a Delaware corporation, and Arch
      Personal Care Products, L.P., a New Jersey limited partnership.

     

    Other
      Costs:
      As
      defined in Section
      10.3.

     

    Other
      Customers:
      As
      defined in Section
      10.4.

     

    Outstanding
      Balance:
      Of any
      Receivable at any time means the then outstanding principal balance
      thereof.

     

    Participant:
      As
      defined in Section
      12.2.

     

    PBGC:
      The
      Pension Benefit Guaranty Corporation, or any successor thereto.

     

    Pension
      Plan:
      A
      pension plan (as defined in Section 3(2) of ERISA) subject to Title IV of ERISA
      which Arch sponsors or maintains, or to which it makes, is making, or is
      obligated to make contributions, or in the case of a multiple employer plan
      (as
      described in Section 4064(a) of ERISA) has made contributions at any time during
      the immediately preceding five plan years. 

     

    Permitted
      Government Receivable:
      A
      general obligation of a state or municipal government or any agency, branch,
      division, district, or other political subdivision thereof, or a general
      obligation of the United States government or any agency, branch, division,
      department, or other political subdivision thereof to the extent and that such
      obligation has complied with the Assignment of Claims Act

     

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

     

    Plan:
      An
      employee benefit plan (as defined in Section 3(3) of ERISA) which Arch or any
      of
      its ERISA Affiliates sponsors or maintains or to which Arch or any of its ERISA
      Affiliates makes, is making, or is obligated to make contributions and includes
      any Pension Plan, other than a Plan maintained outside the United States
      primarily for the benefit of Persons who are not U.S. residents.

     

    Pooled
      Commercial Paper:
      Commercial Paper notes of TPF subject to any particular pooling arrangement
      by
      TPF, but excluding Commercial Paper issued by TPF for a tenor and in an amount
      specifically requested by any Person in connection with any agreement effected
      by TPF.

     

    
      
        
        

      

      
        60

        
          

        

      

      
        
        

      

    

    Prime
      Rate:
      A rate
      per annum equal to the prime rate of interest announced from time to time by
      SunTrust Bank (which is not necessarily the lowest rate charged to any
      customer), changing when and as said prime rate changes.

     

    Program
      Documents:
      The
      Liquidity Agreement, the TPF Credit Agreement, the Voluntary Advance Agreement,
      the documents under which Administrator performs its obligations with respect
      to
      TPF’s commercial paper program and the other documents to be executed and
      delivered in connection therewith, as amended, supplemented, restated or
      otherwise modified from time to time.

     

    Proposed
      Reduction Date:
      As
      defined in Section
      1.3(a).

     

    Purchase:
      An
      Incremental Purchase or a Reinvestment.

     

    Purchase
      Date:
      Each
      Business Day on which a Purchase is made hereunder.

     

    Purchase
      Limit:
      $80,000,000 in February through and including August, and $40,000,000 in
      September through and including January.

     

    Purchase
      Notice:
      As
      defined in Section
      1.2.

     

    Purchase
      Price:
      With
      respect to any Incremental Purchase of a Receivable Interest, the amount paid
      to
      the Seller for such Receivable Interest which shall not exceed the least of
      (i)
      the
      amount requested by the Seller in the applicable Purchase Notice, (ii)
      the
      unused portion of the Purchase Limit on the applicable purchase date and
(iii)
      the
      excess, if any, of the Net Pool Balance (less the Required Reserve) on the
      applicable purchase date over the aggregate outstanding amount of Aggregate
      Invested Amount determined as of the date of the most recent Monthly Report
      or
      Collateral Certificate.

     

    Purchased
      Assets:
      All of
      the Seller’s right, title and interest, whether now owned and existing or
      hereafter arising in and to all of the Receivables, the Related Security, the
      Collections and all proceeds of the foregoing.

     

    Rating
      Agency Condition:
      That
      TPF has received written notice from S&P and Moody’s that an amendment, a
      change or a waiver will not result in a withdrawal or downgrade of the then
      current ratings on TPF’s Commercial Paper.

     

    Receivable:
      All
      indebtedness and other obligations owed to the Seller or any Originator (at
      the
      time it arises, and before giving effect to any transfer or conveyance under
      the
      Receivables Sale Agreement) or in which the Seller or any Originator has a
      security interest or other interest, including, without limitation, any
      indebtedness, obligation or interest constituting an account, chattel paper,
      instrument or general intangible, arising in connection with the sale of goods
      or the rendering of services by any Originator and further includes, without
      limitation, the obligation to pay any Finance Charges with respect thereto.
      Indebtedness and other rights and obligations arising from any one transaction,
      including, without limitation, indebtedness and other rights and obligations
      represented by an individual invoice, shall constitute a Receivable separate
      from a Receivable consisting of the indebtedness and other rights and
      obligations arising from any other transaction; provided further, that any
      indebtedness, rights or obligations referred to in the immediately preceding
      sentence shall be a Receivable regardless of whether the account debtor or
      the
      Seller treats such indebtedness, rights or obligations as a separate payment
      obligation; it being understood that any Receivable for which the Seller has
      received a Purchase Price Credit pursuant to Section 1.4(b) of the Sale
      Agreement in an amount equal to the full amount of the Outstanding Balance
      thereof shall not constitute Receivables hereunder.

     

    
      
        
        

      

      
        61

        
          

        

      

      
        
        

      

    

    Receivable
      Interest:
      At any
      time, an undivided percentage ownership interest (computed as set forth below)
      associated with a designated amount of Invested Amount, selected pursuant to
      the
      terms and conditions hereof in (i)
      each
      Receivable arising prior to the time of the most recent computation or
      recomputation of such undivided interest, (ii)
      all
      Related Security with respect to each such Receivable, and (iii)
      all
      Collections with respect to, and other proceeds of, each such Receivable. Each
      such undivided percentage interest shall equal:

     

    
      	
              IA
                + RR

            
	
              NPB

            

    

    

    where:

    

    IA =
      the
      Invested Amount of such Receivable Interest.

     

    NPB =
      the Net
      Pool Balance.

     

    RR =
      the
      Required Reserve.

     

    Such
      undivided percentage ownership interest shall be initially computed on its
      date
      of purchase. Thereafter, until the Facility Termination Date, each Receivable
      Interest shall be automatically recomputed (or deemed to be recomputed) on
      each
      day prior to the Facility Termination Date. The variable percentage represented
      by any Receivable Interest as computed (or deemed recomputed) as of the close
      of
      the business day immediately preceding the Facility Termination Date shall
      remain constant at all times thereafter.

     

    Receivables
      Sale Agreement:
      That
      certain Receivables Sale Agreement, dated as of June 27, 2005, among the
      Originators and the Seller, as the same may be amended, restated or otherwise
      modified from time to time.

     

    Records:
      With
      respect to any Receivable, all Contracts and other documents, books, records
      and
      other information (including, without limitation, computer programs, tapes,
      disks, punch cards, data processing software and related property and rights)
      relating to such Receivable, any Related Security therefor and the related
      Obligor.

     

    Recourse
      Obligations:
      As
      defined in Section
      2.1.

     

    Reduction
      Notice:
      As
      defined in Section
      1.3.

     

    Regulatory
      Change:
      As
      defined in Section
      10.2.

     

    Reinvestment:
      As
      defined in Section
      2.2(a).

     

    
      
        
        

      

      
        62

        
          

        

      

      
        
        

      

    

    Related
      Security:
      All of
      the Seller’s right, title and interest in, to and under and with respect to any
      Receivable:

     

    (i)  all
      of
      the Seller’s interest in the inventory and goods (including returned or
      repossessed inventory or goods), if any, the sale of which by an Originator
      gave
      rise to such Receivable, and all insurance contracts with respect
      thereto,

     

    (ii)  all
      other
      security interests or liens and property subject thereto from time to time,
      if
      any, purporting to secure payment of such Receivable, whether pursuant to the
      Contract related to such Receivable or otherwise, together with all financing
      statements and security agreements describing any collateral securing such
      Receivable,

     

    (iii)  all
      guaranties, letters of credit, insurance and other agreements or arrangements
      of
      whatever character from time to time supporting or securing payment of such
      Receivable whether pursuant to the Contract related to such Receivable or
      otherwise,

     

    (iv)  all
      service contracts and other contracts and agreements associated with such
      Receivable,

     

    (v)  all
      Records related to such Receivable,

     

    (vi)  all
      of
      the Seller’s right, title and interest in, to and under the Receivables Sale
      Agreement in respect of such Receivable,

     

    (vii)  all
      proceeds of any of the foregoing;

     

    provided,
      however,
      that
“Related Security” shall not include any Restricted Contract to the extent the
      assignment or transfer of, or the creation, attachment, perfection or
      enforcement of a security interest in, such Restricted Contract is not
      authorized by Section 9-406(d) of the UCC as in effect in each relevant
      jurisdiction.

    

    Required
      Liquidity Banks:
      At any
      time, Liquidity Banks with Liquidity Commitments in excess of 50% of the
      aggregate amount of all Liquidity Commitments.

     

    Required
      Notice Period:
      The
      number of days required notice set forth below applicable to the Aggregate
      Reduction indicated below:

     

    
      	
              Aggregate
                Reduction

            	
              Required
                Notice Period

            
	 	 
	
              less
                than 25% of the Purchase Limit

            	
              2
                Business Days

            
	
              greater
                than or equal to 25% of the Purchase Limit

            	
              2
                Business Days

            

    

    

    
      
        
        

      

      
        63

        
          

        

      

      
        
        

      

    

    Required
      Reserve:
      On any
      day during a Calculation Period, the product of (i)
      the
      greater of (A)
      the
      Required Reserve Factor Floor and (B)
      the sum
      of the Loss Reserve, the Yield Reserve, the Dilution Reserve and the Servicing
      Reserve, times (ii)
      the Net
      Pool Balance as of the Cut-Off Date immediately preceding such Calculation
      Period.

     

    Required
      Reserve Factor Floor:
      For any
      Calculation Period, the sum (expressed as a percentage) of (i)
      12% plus
(ii)
      the
      product of the Adjusted Dilution Ratio and the Dilution Horizon Ratio, in each
      case, as of the immediately preceding Cut-Off Date.

     

    Restricted
      Contracts:
      As
      defined in the Sale Agreement.

     

    Restricted
      Junior Payment:
      (i)
      any
      dividend or other distribution, direct or indirect, on account of any shares
      of
      any class of capital stock of the Seller now or hereafter outstanding, except
      a
      dividend payable solely in shares of that class of stock or in any junior class
      of stock of the Seller, (ii)
      any
      redemption, retirement, sinking fund or similar payment, purchase or other
      acquisition for value, direct or indirect, of any shares of any class of capital
      stock of the Seller now or hereafter outstanding, (iii)
      any
      payment or prepayment of principal of, premium, if any, or interest, fees or
      other charges on or with respect to, and any redemption, purchase, retirement,
      defeasance, sinking fund or similar payment and any claim for rescission with
      respect to the Subordinated Loans (as defined in the Receivables Sale
      Agreement), (iv)
      any
      payment made to redeem, purchase, repurchase or retire, or to obtain the
      surrender of, any outstanding warrants, options or other rights to acquire
      shares of any class of capital stock of the Seller now or hereafter outstanding,
      and (v)
      any
      payment of management fees by the Seller (except for reasonable management
      fees
      to any Originator or its Affiliates in reimbursement of actual management
      services performed).

     

    Review:
      As
      defined in Section
      7.1(d)(ii).

     

    S&P:
      Standard and Poor’s Ratings Services, a division of The McGraw Hill Companies,
      Inc.

     

    Secured
      Parties:
      The
      Indemnified Parties.

     

    Seller:
      As
      defined in the preamble to this Agreement.

     

    Seller
      Parties:
      As
      defined in the preamble to this Agreement.

     

    Servicer:
      At any
      time the Person (which may be the Administrator) then authorized pursuant to
      Article
      VIII
      to
      service, administer and collect Receivables.

     

    Servicing
      Fee:
      For
      each day in a Calculation Period:

     

    (i)  an
      amount
      equal to (A)
      the
      Servicing Fee Rate (or, at any time while Arch or one of its Affiliates is
      the
      Servicer, such lesser percentage as may be agreed between the Seller and the
      Servicer on an arms’ length basis based on then prevailing market terms for
      similar services), times (B)
      the
      aggregate Outstanding Balance of all Receivables at the close of business on
      the
      Cut-Off Date immediately preceding such Calculation Period, times (C)
      1/360;
      or

     

    
      
        
        

      

      
        64

        
          

        

      

      
        
        

      

    

    (ii)  on
      and
      after the Servicer’s reasonable request made at any time when Arch or one of its
      Affiliates is no longer acting as Servicer hereunder, an alternative amount
      specified by the successor Servicer not exceeding (A)
      110% of
      such Servicer’s reasonable costs and expenses of performing its obligations
      under this Agreement during the preceding Calculation Period, divided by
(B)
      the
      number of days in the current Calculation Period.

     

    Servicing
      Fee Rate:
      1.0%
      per annum.

     

    Servicing
      Reserve:
      For any
      Calculation Period, the product (expressed as a percentage) of (a) the highest
      Days Sales Outstanding Ratio during the most recent twelve-month period, (b)
      the
      Stress Factor, (c) 2.40%, and (d) 1/360.

     

    Settlement
      Date:
      (i)
      The
      2nd
      Business
      Day after each Monthly Reporting Date, and (ii)
      the last
      day of the relevant Interest Period in respect of each Receivable Interest
      funded through a Liquidity Funding.

     

    Settlement
      Period:
      (i)
      In
      respect of each Receivable Interest funded through the issuance of Commercial
      Paper, the immediately preceding Calculation Period, and (ii)
      in
      respect of each Receivable Interest funded through a Liquidity Funding, the
      entire Interest Period of such Liquidity Funding.

     

    Special
      Obligor.
      Wal-Mart Stores Inc.
      and its
      Affiliates so long as (a) not more than 10% of the aggregate Outstanding Balance
      of all Receivables owing from them remain
      unpaid
      for more than 60 days from the original due date therefor,
      and (b)
      Wal-Mart Stores Inc. maintains short term unsecured debt ratings of at least
      both “A-1” from S&P and“P-1”
      from Moody’s.

     

    Stress
      Factor:
      2.0.

     

    Subsidiary:
      Of a
      Person means (i)
      any
      corporation more than 50% of the outstanding securities having ordinary voting
      power of which shall at the time be owned or controlled, directly or indirectly,
      by such Person or by one or more of its Subsidiaries or by such Person and
      one
      or more of its Subsidiaries, or (ii)
      any
      partnership, association, limited liability company, joint venture or similar
      business organization more than 50% of the ownership interests having ordinary
      voting power of which shall at the time be so owned or controlled.

     

    Tax
      Code:
      The
      Internal Revenue Code of 1986, as the same may be amended from time to
      time.

     

    Terminating
      Tranche:
      As
      defined in Section
      4.3(b).

     

    TPF:
      As
      defined in the preamble to this Agreement.

     

    TPF
      Credit Agreement:
      Any
      program-wide agreement entered into by any Credit Bank providing for the
      issuance of one or more letters of credit for the account of TPF, the issuance
      of one or more surety bonds for which TPF is obligated to reimburse the
      applicable Credit Bank for any drawings hereunder, the sale by TPF to any Credit
      Bank of receivables or other financial assets owned or held by TPF (or portions
      thereof) and/or the making of loans and/or other extensions of credit to TPF
      in
      connection with its commercial paper program, together with any cash collateral
      agreement, letter of credit, surety bond or other agreement or instrument
      executed and delivered in connection therewith (but excluding the Liquidity
      Agreement, or similar agreement, or any voluntary advance
      agreement).

     

    
      
        
        

      

      
        65

        
          

        

      

      
        
        

      

    

    TPF’s
      Portion:
      On any
      date of determination, the sum of the percentages represented by the Receivable
      Interests.

     

    Transaction
      Documents:
      Collectively, this Agreement, each Purchase Notice, the Receivables Sale
      Agreement, each Collection Account Agreement, the Fee Letter, the Subordinated
      Note (as defined in the Receivables Sale Agreement) and all other instruments,
      documents and agreements executed and delivered in connection herewith (except
      the Program Documents).

     

    UCC:
      The
      Uniform Commercial Code as from time to time in effect in the specified
      jurisdiction.

     

    Unmatured
      Amortization Event:
      An
      event which, with the passage of time or the giving of notice, or both, would
      constitute an Amortization Event.

     

    Voluntary
      Advance Agreement:
      The
      Voluntary Advance Agreement, dated as of March 11, 1999, among TPF,
      Administrator and SunTrust Bank, as it may be amended, supplemented, restated
      or
      otherwise modified from time to time.

     

    Voluntary
      Termination:
      The
      occurrence of an Amortization Event resulting from the occurrence of the
“Termination Date” pursuant to subclause (iv) of the definition of “Termination
      Date” in the Receivables Sale Agreement.

     

    Weighted
      Average Credit Percentage:
      On any
      date of determination, the greater of (a) 0% and (b) the percentage determined
      pursuant to the following formula:

     

    

    
      	 	 	 	 	 	 	 
	 	
               

            	
               100%
                x

            	
              WACT
                -30

            	 	 	 
	 	 	
              30

            	 	 	 
	 	 	 	 	 	 	 

    

    

    where:

     

    WACT
      =
      the Weighted Average Credit Terms as of the most recent Cut-Off
      Date.

     

    Weighted
      Average Credit Terms:
      For any
      Cut-Off Date, the weighted average of payment terms granted in invoices for
      Receivables outstanding as of such date, exclusive of invoices with payment
      terms of greater than 120 days (which are ineligible).

     

    Yield:
      For
      each Interest Period relating to a Receivable Interest funded through a
      Liquidity Funding, an amount equal to the product of the applicable Yield Rate
      for such Receivable Interest multiplied by the Invested Amount of such
      Receivable Interest for each day elapsed during such Interest Period, annualized
      on a 360 day basis.

     

    
      
        
        

      

      
        66

        
          

        

      

      
        
        

      

    

    Yield
      Rate:
      With
      respect to each Receivable Interest funded through a Liquidity Funding, the
      LIBO
      Rate, the Alternate Base Rate or the Default Rate, as applicable.

     

    Yield
      Reserve:
      For any
      Calculation Period, the product (expressed as a percentage) of (i)
      the
      Stress Factor times (ii)
      the
      Alternate Base Rate as of the immediately preceding Cut-Off Date times (iii)
      a
      fraction the numerator of which is the highest Days Sales Outstanding for the
      most recent 12 Calculation Periods and the denominator of which is
      360.

     

    All
      accounting terms not specifically defined herein shall be construed in
      accordance with GAAP. Unless otherwise specified, all terms used in Article
      9 of
      the UCC in the State of New York, and not specifically defined herein, are
      used
      herein as defined in such Article 9.

    
      
        
        

      

      
        67

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      II

     

    FORM
      OF
      PURCHASE NOTICE

    

    Arch
      Chemicals Receivables Corp.

    

    PURCHASE
      NOTICE

    

    dated
      ______________, 20__

    for
      Purchase on ________________, 20__

    

    

    SunTrust
      Capital Markets, Inc., as Administrator

    _________________________________

    _________________________________

    

    Attention:
      ___________________, Fax No. ( ) __________

    

    Ladies
      and Gentlemen:

    

    Reference
      is made to the Receivables Purchase Agreement dated as of June 27, 2005 (as
      amended, supplemented or otherwise modified from time to time, the “Receivables
      Purchase Agreement”)
      among
      Arch Chemicals Receivables Corp. (the “Seller”),
      Arch
      Chemicals, Inc., as initial Servicer, TPF Asset Funding Corporation, and
      SunTrust Capital Markets, Inc., as Administrator. Capitalized terms defined
      in
      the Receivables Purchase Agreement are used herein with the same
      meanings.

     

    1. The
      Seller hereby certifies, represents and warrants to the Administrator and TPF
      that on and as of the Purchase Date (as hereinafter defined):

     

    (a) all
      applicable conditions precedent set forth in Article
      VI
      of the
      Receivables Purchase Agreement have been satisfied;

     

    (b)  each
      of
      its representations and warranties contained in Section
      5.1
      of the
      Receivables Purchase Agreement will be true and correct, in all material
      respects, as if made on and as of the Purchase Date;

     

    (c)  no
      event
      has occurred and is continuing, or would result from the requested Purchase,
      that constitutes an Amortization Event or Unmatured Amortization Event;
      and

     

    (d)  the
      Facility Termination Date has not occurred.

     

    2. The
      Seller hereby requests that TPF make a Purchase on ___________, 20__ (the
“Purchase
      Date”)
      as
      follows:

     

    (a) Purchase
      Price: $_____________

     

    
      
        
        

      

      
        68

        
          

        

      

      
        
        

      

    

    (b)  If
      the
      Purchase is funded with a Liquidity Funding, the Seller requests that the
      Invested Amount (which will initially accrue Yield at the Alternate Base Rate)
      begin to accrued Yield at a LIBO Rate for a Interest Period of _____ months
      on
      the third Business Day after the Purchase Date).

     

    3. Please
      disburse the proceeds of the Purchase as follows:

     

    [Apply
      $________ to payment of Aggregate Unpaids due on the Purchase Date]. [Wire
      transfer $________ to account no. ________ at ___________ Bank, in [city,
      state], ABA No. __________, Reference: ________].

     

    IN
      WITNESS WHEREOF, the Seller has caused this Purchase Request to be executed
      and
      delivered as of this ____ day of ___________, _____.

     

    ____________.,
      as the Seller

    

    

    By:      

    Name:      

    Title:      

    
 

    
      
        
        

      

      
        69

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      III

    

    JURISDICTION
      OF ORGANIZATION OF THE SELLER PARTIES;

    PLACES
      OF
      BUSINESS OF THE SELLER PARTIES; LOCATIONS OF RECORDS;

    FEDERAL
      EMPLOYER IDENTIFICATION NUMBER(S)

    

    

    ARCH
      CHEMICALS, INC.

    

    Jurisdiction
      of Organization: Virginia

    

    Principal
      places of business:

    

    
      	
              501
                Merritt 7

              P.O.
                Box 5204

              Norwalk,
                CT 06856-5204

              (CHIEF
                EXECUTIVE OFFICE)

            
	
              P.O.
                Box 547

              2450
                Olin Road

              Brandenburg,
                KY 40108-0547

            
	
              1200
                Lower River Road

              Charleston,
                TN 37310

            
	
              350
                Knotter Drive

              Cheshire,
                CT 06410

            
	
              960
                I-10 at West Lake

              Lake
                Charles, LA 70602

            
	
              P.O.
                Box 28

              1
                Industrial Road

              McIntosh,
                AL 36553-0028

            
	
              100
                McKee Road

              P.O.
                Box 205

              Rochester,
                NY 14601-0205

            

    

    

    
      
        
        

      

      
        70

        
          

        

      

      
        
        

      

    

    Location(s)
      of Records:

    
      	
              501
                Merritt 7

              P.O.
                Box 5204

              Norwalk,
                CT 06856-5204

            
	
              P.O.
                Box 547

              2450
                Olin Road

              Brandenburg,
                KY 40108-0547

            
	
              1200
                Lower River Road

              Charleston,
                TN 37310

            
	
              350
                Knotter Drive

              Cheshire,
                CT 06410

            
	
              960
                I-10 at West Lake

              Lake
                Charles, LA 70602

            
	
              P.O.
                Box 28

              1
                Industrial Road

              McIntosh,
                AL 36553-0028

            
	
              100
                McKee Road

              P.O.
                Box 205

              Rochester,
                NY 14601-0205

            

    

    

    Federal
      employer identification number:

    

    XX-XXXXX

    

    Legal,
      Trade & Assumed Names:

    

    JPL
      Corporation (former name from Aug. 25, 1998 through Nov. 5, 1998)

    

    ARCH
      CHEMICALS RECEIVABLES CORP.

    

    Jurisdiction
      of Organization: Delaware

    

    Organization
      Number (if any): 3493573

    

    
      
        
        

      

      
        71

        
          

        

      

      
        
        

      

    

    Place(s)
      of Business:   501
      Merritt 7 

    Norwalk,
      CT 06851 USA

    

    Location(s)
      of

    Records:                       
      501
      Merritt 7 

    Norwalk,
      CT 06851 USA

    

    

    Federal
      Employer Identification Number: XX-XXXXX

    

    Legal,
      Trade and Assumed Names: None

     

    
      
        
        

      

      
        72

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      IV

    

    NAMES
      OF
      COLLECTION BANKS; LOCK-BOXES AND COLLECTION ACCOUNTS

    

    

    
      
        	
                
                  ·       PNC
                    Bank, National Association

                

                Treasury
                  Management

                Two
                  Tower Center, 17th Floor

                East
                  Brunswick, NJ 08816

              
	
                Lock
                  Box:

                P.O.
                  Box 640060

                Pittsburgh,
                  PA 15264-0060

              	
                Collection
                  Account Number:

                XXXXXX

              
	 
	
                
                  ·       The
                    Northern Trust Company

                

                50
                  South LaSalle Street

                Chicago,
                  Illinois 60675

              
	
                Lock
                  Box:

                P.O.
                  Box 92892

                Chicago,
                  IL 60675-2892

                 

                Lock
                  Box:

                P.O.
                  Box 91410

                Chicago,
                  IL 60675

              	
                Collection
                  Account Number:

                XXXXXX

                 

                 

                Collection
                  Account Number:

                XXXXXX

              
	 
	
                
                  ·       JP
                    Morgan Chase Bank

                

                One
                  Chase Manhattan Plaza

                New
                  York, NY 10081

              
	
                Lock
                  Box:

                P.O.
                  Box 910724

                Dallas,
                  TX 75391-0724

              	
                Collection
                  Account Number:

                XXX-XXX-XXX

              
	 
	
                
                  ·       The
                    Toronto-Dominion Bank

                

                Transit
                  1104

                77
                  Bloor St W

                Toronto,
                  Ontario M5S1M2

              
	
                Lock
                  Box:

                P.O.
                  Box 6100 Postal Station F

                Toronto,
                  ON  M4Y2Z2

                Lockbox:
                  T6260

              	
                Collection
                  Account Number:

                
                  XXXXXXXXX
                    (Canadian Dollars)

                

              
	 

      

       

       

      
        
          
          

        

        
          73

          
            

          

        

        
          
          

        

      

       

      
        	
                 

                 

                
                  ·       Wachovia
                    Bank

                

                191
                  Peachtree Street

                Atlanta,
                  GA 30303

              
	
                Lock
                  Box:

                P.O.
                  Box 101308

                Atlanta,
                  GA 30392-1308

                 

                P.O.
                  Box 945582

                Atlanta,
                  GA 30394-5582

                 

                P.O.
                  Box 930597

                Atlanta,
                  GA 31193

                 

                P.O.
                  Box 932727

                Atlanta,
                  GA 31193

                 

                P.O.
                  Box 75335

                Charlotte,
                  NC 28275-0335

                 

                 

                P.O.
                  Box 751822

                Charlotte,
                  NC 28275-1822

                 

              	
                Collection
                  Account Number:

                XXXXXXXXX

                 

                 

                XXXXXXXXX

                 

                 

                XXXXXXXXX

                 

                 

                XXXXXXXXX

                 

                 

                XXXXXXXXX

                 

                 

                 

                XXXXXXXXX

              

      

    

    
 

    
      
        
        

      

      
        74

        
          

        

      

      
        
        

      

    

    EXHIBIT
      V

    

    FORM
      OF
      COMPLIANCE CERTIFICATE

    

    

    To:
      SunTrust Capital Markets, Inc., as Administrator

    

    This
      Compliance Certificate is furnished pursuant to Section 7.1(a)(iii) of that
      certain Receivables Purchase Agreement dated as of June 27, 2005 among Arch
      Chemicals Receivables Corp. (the “Seller”),
      Arch
      Chemicals, Inc. (the “Servicer”),
      TPF
      Asset Funding Corporation and SunTrust Capital Markets, Inc., as Administrator
      (the “Agreement”).

     

    THE
      UNDERSIGNED HEREBY CERTIFIES THAT:

     

    1. I
      am the
      duly elected _________________ of the Seller.

     

    2. I
      have
      reviewed the terms of the Agreement and I have made, or have caused to be made
      under my supervision, a detailed review of the transactions and financial
      conditions of the Seller and its Subsidiaries during the accounting period
      covered by the attached financial statements.

     

    3. The
      examinations described in paragraph
      2
      did not
      disclose, and I have no knowledge of, the existence of any condition or event
      which constitutes an Amortization Event or Unmatured Amortization Event, as
      each
      such term is defined under the Agreement, during or at the end of the accounting
      period covered by the attached financial statements or as of the date of this
      Certificate[,
      except as set forth in paragraph
      4
      below].

     

    [4. Described
      below are the exceptions, if any, to paragraph
      3
      by listing, in detail, the nature of the condition or event, the period during
      which it has existed and the action which the Seller has taken, is taking,
      or
      proposes to take with respect to each such condition or event:
      ____________________]

     

    The
      foregoing certifications, and the financial statements delivered with this
      Certificate in support hereof, are made and delivered as of ______________,
      20__.

     

    

    By:      

    Name:      

    Title:      

    

    
      
        
        

      

      
        75

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      VI

    

    [INTENTIONALLY
      DELETED]

    
      
        
        

      

      
        76

        
          

        

      

      
        
        

      

    

    EXHIBIT
      VII

    

    CREDIT
      AND COLLECTION POLICY

    

    

    See
      Exhibit V to Receivables Sale Agreement

    

    
      
        
        

      

      
        77

        
          

        

      

      
        
        

      

    

    EXHIBIT
      VIII

    

    FORM
      OF
      MONTHLY REPORT

    

    

    

    
      
        
        

      

      
        78

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      IX

    

    FORM
      OF
      COLLATERAL CERTIFICATE

    

    [Attached]

     

    
      
        
        

      

      
        79

        
          

        

      

      
        
        

      

    

    

    

    

    
      
        
        

      

      
        80

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

    

    DOCUMENTS
      TO BE DELIVERED TO THE AGENT

    

    ON
      OR
      PRIOR TO THE INITIAL PURCHASE

    

    

    1. Executed
      copies of the Receivables Sale Agreement, duly executed by the parties
      thereto.

     

    2. Copy
      of
      the Credit and Collection Policy to attach to the Receivables Sale Agreement
      as
      an Exhibit.

     

    3. Subordinated
      Notes in favor of each of the Originators.

     

    4. Executed
      copies of the Receivables Purchase Agreement, duly executed by the parties
      thereto.

     

    5. A
      certificate of the Secretary of each Originator and Seller
      certifying:

     

    (a)
      a
      copy of the resolutions of the Board of Directors of such Person certified
      by
      its Secretary authorizing such Person’s execution, delivery and performance of
      this Agreement and the other documents to be delivered by it
      hereunder;

     

    (b)
      the
      names and signatures of the officers authorized on its behalf to execute this
      Agreement and any other documents to be delivered by it hereunder;

     

    (c)
      a
      copy of such Person’s By-Laws;

     

    (d)
      such
      Person’s articles or certificate of incorporation certified by the secretary of
      state of its jurisdiction of incorporation on or within thirty (30) days prior
      to the initial Purchase; and

     

    (e)
      a
      good standing certificate for such Person issued by the secretary of state
      of
      its state of incorporation.

     

    5. Pre-filing
      state and federal tax lien, judgment lien and UCC lien searches against each
      Originator and Seller from its jurisdiction of organization and from the
      jurisdiction where its chief executive office is located.

     

    6. UCC
      financing statements in form suitable for filing under the UCC naming each
      of
      the Originators and Seller, as a debtor, and Administrator, as secured party
      or
      total assignee.

     

    7. UCC
      termination statements, if any, necessary to release all security interests
      and
      other rights of any Person in the Receivables, Contracts or Related Security
      previously granted by the Seller or any Originator, together with authorization
      to file the same.

     

    
      
        
        

      

      
        81

        
          

        

      

      
        
        

      

    

    8. Executed
      copies of Collection Account Agreements for each Lock-Box and Collection
      Account:

     

    (a) Northern
      Trust

    (b) JPMorgan
      Chase

    (c) PNC
      Bank

    (d) The
      Toronto-Dominion Bank

    (e) Wachovia

    

    9. Opinions
      of legal counsel for the Seller Parties reasonably acceptable to the
      Administrator:

     

    (a) In-house
      counsel [non-contravention]

    (b) Richards,
      Layton & Finger [Delaware]

    (c) Hunton
      & Williams [Virginia]

    (d) McCarter
      & English [New Jersey]

    (e) Cravath
      Swaine & Moore

    (i)
      New
      York law matters

    (ii)
      True
      Sale/Non-consolidation

    

    10. Certificates
      of the chief financial officer or treasurer of each of the Originators as to
      the
      absence of Termination
      Event or Unmatured Termination Event under the Receivables Sale Agreement,
      a
      certificates of the chief financial officer or treasurer of Seller as to the
      absence of or Amortization Event or Unmatured Amortization Event under the
      Receivables Purchase Agreement

     

    11. The
      Fee
      Letter, duly executed by each of the parties thereto.

     

    12. A
      Monthly
      Report as at May 31, 2005, duly executed by Servicer.

     

    13. Purchase
      Notice, duly executed by Seller.

     

    14. The
      Liquidity Agreement,
      duly
      executed by each of the parties thereto.

     

    15.
       Standard
      & Poor’s form certificate executed by the Administrator.

     

    

    
      
        
        

      

      
        82EX-4.10 SHARE PURCHASE AGREEMENT

 

Exhibit 4.10

Share Transfer Agreement

Transferor

Name: Moon Kyu Kim

Korean Resident No: 711104-1143711

Address: Shindonga Apt. 105-2007, 607 Shipjung-2dong, Bupyung-gu, Inchon, Korea

Transferee

Name: Woong-Jin Yoon, Representative Director, GRAVITY Co., Ltd.

Corporation Registration No: 110111-1929839

Address: Shingu Building, 620-2 Shinsa-dong, Gangnam-gu, Seoul, Korea

The Transferor and the Transferee agree as follows as to the transfer of the shares of Trigger Soft
Corporation, located at Woorim Lions Valley Apt. B-806, 371-28 Gasan-dong, Keumchon-gu, Seoul,
Korea, from the Transferor to the Transferee.

Article 1 (Type and Number of Shares to be transferred)

	1.	 	The

	 	1.	 	Issuer of the shares: Trigger Soft Corporation
	 
	 	2.	 	Par value per share: W5,000
	 
	 	3.	 	Number of shares to be transferred: 58,584 shares
	 
	 	4.	 	Consideration per share: W11,500
	 
	 	5.	 	Total consideration: W673,716,000

The Transferor represents and warrants that there is no legal or procedural barriers to
transferring the shares and that it has a legal right to transfer. The Transferor further
represents and warrants that the shares are not subject to any pledge or other security interest,
and is otherwise unencumbered from the exercise of voting rights, the issuance of new shares,
whether with or without consideration, and the exercise of any other rights over the shares.

Article 2 (Effective Date of the Transfer)

The date of the transfer of the shares described in Article 1 shall be the date on which this
Agreement is signed.

 

 

Article 3 (Consideration for the Shares)

The Transferee shall pay to the Transferor the consideration for the shares in cash as follows:

	 	1.	 	First payment for the shares: W336,858,000 — Payment must be within three days after
the first extraordinary shareholders meeting which takes place after the execution of this
agreement.
	 
	 	2.	 	Secondary payment for the shares: W202,114,800 — March 30, 2006 (if national holiday,
the next business day)
	 
	 	3.	 	Third payment for the shares: W134,743,200 — March 30, 2007 (if national holiday, the
next business day)

Article 4 (Rights Over the Transferred Shares)

	 	1.	 	Any and all rights over the shares being transferred as set forth in Article 1 shall
transfer from the Transferor to the Transferee upon the signing of this agreement.
Following the date of this agreement, the Transferor shall have only the right of claim
with respect to the amount of consideration for the shares and shall not have any other
rights as a holder of the shares.
	 
	 	2.	 	Upon signing of this agreement, the Transferor shall give written notice to Trigger
Soft Corporation of the consummation of the transfer of the shares described in Article 1
and shall fully cooperate with the Transferee’s request to make amendments in the
shareholders registry.
	 
	 	3.	 	Following the transfer of the shares described in Article 1, the Transferor shall
cooperate so as to enable the Transferee to exercise all its rights as the holder of the
shares.

Article 5 (Taxes, Etc.)

	 	1.	 	Each party shall bear all taxes for which it is liable under this Agreement, provided
that the Transferor shall pay the security exchange taxes.
	 
	 	2.	 	The Transferor acknowledges the inevitability of due diligence for the purpose of
signing and performing this agreement, and shall bear 50% of the costs related to such due
diligence.

 

 

Article 6 (Termination)

If either party fails to perform or delay performance of this agreement, the other party may demand
performance of this agreement by written notice, and if such party fails to perform within five
days of such demand, such other party may terminate this agreement by written notice.

Article 7 (Indemnification)

	 	1.	 	If this agreement is terminated after signing due to the failure to perform or
delayed performance by a party hereto the party at fault must indemnify the other party
for any losses resulting therefrom.
	 
	 	2.	 	The amount of damages for which the party at fault will be liable to the other party
shall be limited to the first payment for shares as set forth in Article 3(1), unless
otherwise evidenced by such other party.
	 
	 	3.	 	The foregoing indemnity amount may be set off against all or a portion of any amount
that the Transferee is obligated to pay the Transferor, including the consideration for
the shares.

Article 8 (Confidentiality)

The Transferor and the Transferee shall not provide or disclose this agreement or any information
related thereto. A breaching party shall indemnify the other party for any losses resulting
therefrom.

Article 9 (Dispute Resolution)

The parties shall attempt to settle any differences in interpretation or disputes relating to this
agreement amicably and in accordance with any applicable law. Failing this, any matter in dispute
shall be adjudicated by the Seoul District Court in Seoul, Korea.

As evidence of the proper formation of this agreement, the Transferor and the Transferee shall
prepare two copies of this agreement and each of them shall keep one such copy.

May 3, 2005

 

 

Transferor

Name: Moon Kyu Kim /seal/

Korean Resident No: 711104-1143711

Address: Shindonga Apt. 105-2007, 607 Shipjung-2dong, Bupyung-gu, Inchon, Korea

Transferee

Name: Woong-Jin Yoon, Representative Director, GRAVITY Co., Ltd. /seal/

Corporation Registration No: 110111-1929839

Address: Shingu Building, 620-2 Shinsa-dong, Gangnam-gu, Seoul, Korea

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