Document:

Exhibit 10.1

    

      AMENDED
        AND RESTATED CREDIT AGREEMENT

       

      

       

      AMENDED
        AND RESTATED CREDIT AGREEMENT,
        dated
        as of September 13, 2005, among
        TASTY BAKING COMPANY
        a
        Pennsylvania corporation (the “Company”),
        the
        direct and indirect subsidiaries of the Company from time to time parties
        hereto
        (the “Subsidiary
        Borrowers”
and
        with the Company, collectively, the “Borrowers”),
        the
        several banks and other financial institutions from time to time parties
        hereto
        (the “Banks”)
        and
PNC
        BANK, NATIONAL ASSOCIATION,
        as
        agent for the Banks hereunder (in such capacity, the “Agent”).

       

      W
        I T N E S S E T H:

       

      A. The
        Borrowers, the lenders from time to time party thereto and the Agent, entered
        into that certain Credit Agreement dated as of January 31, 2002 (as amended
        and modified prior to the date hereof, the “Existing
        Credit Agreement”).

       

      B. The
        Borrowers have requested and the Lenders and the Agent have agreed to modify
        and
        amend the credit facilities established under the Existing Credit Agreement
        and
        to amend and restate the Existing Credit Agreement on the terms and conditions
        hereinafter set forth.

       

      NOW,
        THEREFORE, in consideration of the promises and the agreements hereinafter
        set
        forth, and intending to be legally bound hereby, the parties hereto hereby
        agree
        that, upon the Effective Date, the Existing Credit Agreement shall be and
        is
        hereby amended and restated to read in full as follows:

       

       

      SECTION
        1.   DEFINITIONS

       

      1.1  Defined
        Terms

       

      .
        As used
        in this Agreement, the following terms shall have the following
        meanings:

       

      “Affiliate”:
        as to
        any Person, any other Person which, directly or indirectly, through one or
        more
        intermediaries, controls, or is controlled by, or is under common control
        with,
        such Person and any member, limited liability company manager, director,
        officer
        or employee of any such Person. For purposes of this definition, “control” shall
        mean the power, directly or indirectly, either to (a) vote 10% or more of
        the
        securities having ordinary voting power for the election of directors or
        managers of such Person or (b) direct or in effect cause the direction of
        the
        management and policies of such Person whether by contract or
        otherwise.

       

      “Agreement”:
        this
        Credit Agreement, as amended, supplemented or otherwise modified from time
        to
        time.

       

      “Anti-Terrorism
        Statute”:
        shall
        mean any laws relating to terrorism or money laundering, including Executive
        Order No. 13224 and the USA Patriot Act.

       

       

      
        
          
          

        

        
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      “Applicable
        Margin”:
        for
        any LIBOR Loan or Daily LIBOR Loan on any date, the percentage per annum
        set
        forth below opposite the Leverage Ratio shown on the last Compliance Certificate
        delivered by the Borrowers to the Agent pursuant to subsection 5.2(b) prior
        to
        such date:

       

      
        	 	 	
                Applicable
                  Margin

              
	
                 

                Level

              	
                 

                Leverage
                  Ratio

              	
                 

                LIBOR
                  Loan/Daily LIBOR

              
	 	 	 
	
                I

              	
                Less
                  than 1.00 to 1.00

              	
                0.75%

              
	 	 	 
	
                II

              	
                Greater
                  than or equal to 1.00 to 1.00 but less than 2.00 to 1.00

              	
                1.00%

              
	 	 	 
	
                III

              	
                Greater
                  than or equal to 2.00 to 1.00

              	
                1.25%

              
	 	 	 

      

       

      ;
        provided, however, that (a) adjustments, if any, to the Applicable Margin
        resulting from a change in the Leverage Ratio shall be effective five Business
        Days after the Agent has received a Compliance Certificate, (b) in the
        event that no Compliance Certificate has been delivered for a fiscal quarter
        prior to the last date on which it can be delivered without violation of
        subsection 5.2(b), the Applicable Margin from such date until such Compliance
        Certificate is actually delivered shall be that applicable under Level III,
        (c) in the event that the actual Leverage Ratio for any fiscal quarter is
        subsequently determined to be greater than or less than that set forth in
        the
        Compliance Certificate for such fiscal quarter, the Applicable Margin shall
        be
        recalculated for the applicable period based upon such actual Leverage Ratio
        and
        (d) anything in this definition to the contrary notwithstanding, until
        receipt by the Agent of the Compliance Certificate for the fiscal year ending
        December 31, 2005, the Applicable Margin shall be that applicable under
        Level III. Any additional interest on the Loans resulting from the operation
        of
        clause (c) above shall be payable by the Borrowers jointly and severally
        to the
        Banks within five (5) days after receipt of a written demand therefor from
        the
        Agent. The Applicable Margin for all Base Rate Loans shall be zero percent
        (0%).

       

      “Application”:
        in
        respect of each Letter of Credit issued by the Issuing Bank, an application,
        in
        such form as the Issuing Bank may specify from time to time, requesting issuance
        of such Letter of Credit.

       

      “Assignment
        and Acceptance”:
        an
        assignment and acceptance entered into by a Bank and a Purchasing Bank, and
        accepted by the Agent pursuant to Section 9.6 hereof, in the form of
Exhibit B
        attached
        hereto, or such other form as shall be approved by the Agent.

       

      “Base
        Rate”:
        for
        any day, a rate per annum (rounded upwards, if necessary, to the next 1/100th
        of
        1%) equal to the greater of (a) the Prime Rate in effect on such day and
        (b) the Federal Funds Open Rate in effect on such day plus one half of one
        percent (0.5%). If for any reason the Agent shall have determined (which
        determination shall be conclusive absent manifest 

       

       

      
        
          
          

        

        
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      error)
        that it is unable to ascertain the Federal Funds Open Rate for any reason,
        including the inability or failure of the Agent to obtain sufficient quotations
        in accordance with the definition of such term, the Base Rate shall be
        determined without regard to clause (b) of the first sentence of this
        definition until the circumstances giving rise to such inability no longer
        exist. Any change in the Base Rate due to a change in the Prime Rate or the
        Federal Funds Open Rate shall be effective on the effective date of such
        change
        in the Prime Rate or the Federal Funds Open Rate, as the case may
        be.

       

      “Base
        Rate Loan”:
        any
        Loan bearing interest at a rate determined by reference to the Base
        Rate.

       

      “Borrowers’
        Representative”:
        has
        the meaning assigned to such term in Section 2.20.

       

      “Borrowing
        Date”:
        any
        Business Day on which a Loan is to be made at the request of the Borrowers’
Representative under this Agreement.

       

      “Business
        Day”:
        a day
        other than a Saturday, Sunday or other day on which commercial banks in
        Philadelphia, Pennsylvania are authorized or required by law to close and
        with
        respect to LIBOR Loans, such day shall also be a day on which banks are open
        for
        dealings in dollar deposits in the London Interbank Market.

       

      “Capital
        Expenditures”:
        expenditures made or liabilities incurred for the acquisition of any fixed
        assets or improvements, replacements, substitutions or additions thereto
        which
        have a useful life of more than one year, including Capital Lease Obligations,
        which, in accordance with GAAP, would be classified as capital
        expenditures.

       

      “Capital
        Lease”:
        at any
        time, a lease with respect to which the lessee is required to recognize the
        acquisition of an asset and the incurrence of a liability in accordance with
        GAAP.

       

      “Capital
        Lease Obligations”:
        at any
        time, the amount of the obligations under Capital Leases which would be shown
        at
        such time as a liability on a consolidated balance sheet of the Company and
        its
        consolidated Subsidiaries prepared in accordance with GAAP.

       

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

       

      “Cash
        Management Agreements”:
        has
        the meaning assigned to such term in Section 2.3(i).

       

      “Change
        of Control”:
        an
        event or series of events by which (a) any “person” or “group” (as such terms
        are defined in Sections 13(d) and 14(d) of the Securities Exchange Act of
        1934,
        as amended, and the rules and regulations promulgated thereunder), is or
        becomes
        the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under such Exchange
        Act, except that a Person shall be deemed to have “beneficial ownership” of all
        shares that any such Person has the 

       

       

      
        
          
          

        

        
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      right
        to
        acquire without condition, other than passage of time, whether such right
        is
        exercisable immediately or only after the passage of time), directly or
        indirectly, of more than 20% of the total voting power of the then outstanding
        Voting Stock of the Company, or (b) from and after the date hereof, individuals
        who on the date hereof constitute the Board of Directors of the Company
        (together with any new directors whose election by such Board of Directors
        or
        whose nomination for election by the shareholders of the Company was approved
        by
        a vote of a majority of the directors then still in office who were either
        directors on the date hereof or whose election or nomination for election
        was
        previously so approved) cease for any reason to constitute a majority of
        the
        Board of Directors of the Company then in office.

       

      “Citizens
        Loan Agreement”:
        shall
        mean that certain Loan Agreement among the Borrowers and Citizens Bank of
        Pennsylvania dated as of the date hereof, pursuant to which Citizens Bank
        of
        Pennsylvania has agreed to make the Citizens Secured Term Loan and the Citizens
        Unsecured Term Loan to the Borrowers.

       

      “Citizens
        Loan Documents”:
        shall
        mean, collectively, the Citizens Loan Agreement, the term notes evidencing
        the
        Citizens Secured Term Loan and the Citizens Unsecured Term Loan executed
        in
        connection with the Citizens Loan Agreement, the Hunting Park Mortgage and
        all
        other documents, instruments, agreements or certificates delivered in connection
        therewith, in each case as amended, supplemented or modified from time to
        time.

       

      “Citizens
        Secured Term Loan”:
        shall
        mean the term loan secured by the Hunting Park Mortgage to be loaned to the
        Borrowers, if at all, by no later than December 31, 2005 in an aggregate
        principal amount not to exceed $2,150,000.

       

      “Citizens
        Unsecured Term Loan”:
        shall
        mean the unsecured term loan to be made to the Borrowers in an aggregate
        principal amount not to exceed $7,850,000 of which $5,300,000 shall be loaned
        on
        the Effective Date and the remainder of which shall be loaned to the Borrowers,
        if at all, by no later than December 31, 2005. 

       

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

       

      “Commitments”:
        the
        Revolver Commitments and the Swing Line Commitments, as the context may
        require.

       

      “Commitment
        Fees”:
        those
        certain fees payable to the Banks on the Revolver Facility as defined in
        subsection 2.7(a).

       

      “Commitment
        Fee Rate”:
        for
        the Revolver Facility on any date, the percentage per annum set forth below
        opposite the Leverage Ratio shown on the last Compliance Certificate delivered
        by the Borrowers to the Agent pursuant to subsection 5.2(b) prior to such
        date:

       

       

      
        
          
          

        

        
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                Level

              	
                Leverage
                  Ratio

              	
                Revolver
                  Facility

              
	 	 	 
	
                I

              	
                Less
                  than 1.00 to 1.00

              	
                0.10%

              
	 	 	 
	
                II

              	
                Greater
                  than or equal to 1.00 to 1.00 but less than 2.00 to 1.00

              	
                0.175%

              
	 	 	 
	
                III

              	
                Greater
                  than or equal to 2.00 to 1.00

              	
                0.25%

              
	 	 	 

      

      ;
        provided,
        however,
        that,
        (a) adjustments, if any, to the Commitment Fee Rate resulting from a change
        in the Leverage Ratio shall be effective five Business Days after the Agent
        has
        received a Compliance Certificate, (b) in the event that no Compliance
        Certificate has been delivered for a fiscal quarter prior to the last date
        on
        which it can be delivered without violation of subsection 5.2(b), the Commitment
        Fee Rate from such date until such Compliance Certificate is actually delivered
        shall be that applicable under Level III, (c) in the event that the actual
        Leverage Ratio for any fiscal quarter is subsequently determined to be greater
        than or less than that set forth in the Compliance Certificate for such fiscal
        quarter, the Commitment Fee Rate shall be recalculated for the applicable
        period
        based upon such actual Leverage Ratio and (d) anything in this definition
        to the contrary notwithstanding, until receipt by the Agent of the Compliance
        Certificate for the fiscal year ending December 31, 2005, the Commitment
        Fee Rate shall be that applicable under Level III. Any additional Commitment
        Fee
        that is due to the Banks resulting from the operation of clause (c) above
        shall
        be payable by the Borrowers jointly and severally within five (5) days after
        receipt of a written demand therefor from the Agent.

       

      “Commitment
        Letter”:
        the
        letter, dated August 4, 2005, from the Agent to the Company relating to the
        payment of certain fees and expenses in connection with the transactions
        contemplated hereby, as amended, supplemented or otherwise modified from
        time to
        time.

       

      “Commitment
        Percentage”:
        at any
        time, the percentage which a Bank’s Revolver Commitment constitutes of the
        aggregate of the Revolver Commitments of all Banks at such time (or at any
        time
        after Revolver Commitments shall have expired or terminated, the percentage
        which the amount of such Bank’s Revolver Exposure constitutes of the aggregate
        amount of the Revolver Exposure of all Banks at such time).

       

      “Commonly
        Controlled Entity”:
        an
        entity, whether or not incorporated, which is under common control with the
        Company within the meaning of Section 4001 of ERISA or is part of a group
        which
        includes the Company and which is treated as a single employer under Section
        414(b), (c), (m) or (o) of the Code.

       

      “Compliance
        Certificate”:
        has
        the meaning assigned to such term in subsection 5.2(b).

       

       

       

      
        
          
          

        

        
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      “Contractual
        Obligation”:
        as to
        any Person, any provision of any security issued by such Person or any provision
        of any agreement, instrument or other undertaking to which such Person is
        a
        party or by which it or any of its property is bound.

       

      “Daily
        LIBOR Loan”:
        any
        Swing Line Loan bearing interest at the Daily LIBOR Rate.

       

      “Daily
        LIBOR Rate”:
        the
        rate per annum determined by the Agent by dividing (the resulting quotient
        rounded upwards, if necessary, to the nearest 1/100th
        of 1%)
        (x) the rate of interest published each Business Day in The Wall Street Journal
        “Money Rates” listing (or in the event such rate is no longer available from
        such source, from such other comparable publication as the Agent shall
        reasonably determine) under the caption “London Interbank Offered Rates” for a
        one month interest period by (y) one minus
        the
        percentage prescribed by the Federal Reserve for determining the maximum
        reserve
        requirements with respect to any eurocurrency funding by the Banks on such
        day.
        The rate of interest charged shall be adjusted as of each Business Day based
        on
        changes in the Daily LIBOR Rate without notice to the Borrowers, and shall
        be
        applicable to the then outstanding balance under the Swing Line Loans from
        the
        effective date of such change. 

       

      “Default”:
        any of
        the events specified in Section 7, whether or not any requirement for the
        giving of notice, the lapse of time, or both, or any other condition precedent
        therein set forth, has been satisfied.

       

      “Distribution”:
        in
        respect of any Person, (a) dividends or other distributions on Capital Stock
        of
        such Person (except distributions in Capital Stock of such Person); (b) the
        redemption or acquisition of such Capital Stock or of warrants, rights or
        other
        options to purchase such Capital Stock (except when solely in exchange for
        Capital Stock of such Person); and (c) any payment on account of, or the
        setting
        apart of any assets for a sinking or other analogous fund for, the purchase,
        redemption, defeasance, retirement or other acquisition of any share of any
        class of Capital Stock of such Person or any warrants or options to purchase
        any
        such Capital Stock.

       

      “Dollars”
and
        “$”:
        dollars in lawful currency of the United States of America.

       

      “EBITDA”:
        for
        any period of four (4) consecutive quarters, consolidated net income (excluding
        extraordinary gains and losses), plus
        the sum
        of (a) income tax expense, (b) interest expense, (c) depreciation and
        amortization, (d) non-cash pension charges, but only to the extent such non-cash
        charges do not exceed twenty percent (20%) of the Tangible Net Worth as
        determined as of the end of such period and (e) any other non-cash gains
        to or
        non-cash charges against net income acceptable to the Agent and the Required
        Banks (which shall include a non-cash charge against net income in connection
        with stock-based compensation), less
        any
        non-cash pension gains during such period, in each case to the extent deducted
        in determining net income, as determined for the Company and its consolidated
        Subsidiaries in accordance with GAAP.

       

      “Effective
        Date”:
        has
        the meaning assigned to such term in Section 4.3.

       

       

      
        
          
          

        

        
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      “Environmental
        Laws”:
        any
        and all Federal, state, local or municipal laws, rules, orders, regulations,
        statutes, ordinances, codes, decrees or binding requirements of any Governmental
        Authority, or binding Requirement of Law regulating, relating to or imposing
        liability or standards of conduct concerning protection of the environment,
        as
        now or may at any time hereafter be in effect.

       

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

       

      “Eurocurrency
        Rate Reserve Percentage”:
        the
        maximum percentage (expressed as a decimal rounded upward to the nearest
        1/100
        of 1%) as determined by the Agent which is in effect during any relevant
        period:
        (i) as prescribed by the Board of Governors of the Federal Reserve System
        (or any successor) for determining the reserve requirements (including
        supplemental, marginal and emergency reserve requirements) with respect to
        eurocurrency funding (currently referred to as “Eurocurrency Liabilities”) of a
        member bank in such System; and (ii) to be maintained by a Bank as required
        for reserve liquidity, special deposit, or a similar purpose by any governmental
        or monetary authority of any country or political subdivision thereof (including
        any central bank), against (A) any category of liabilities that includes
        deposits by reference to which a LIBOR Rate is to be determined, or (B) any
        category of extension of credit or other assets that includes Loans or Tranches
        to which a LIBOR Rate applies.

       

      “Event
        of Default”:
        any of
        the events specified in Section 7, provided
        that any
        requirement for the giving of notice, the lapse of time, or both, or any
        other
        condition, has been satisfied.

       

      “Executive
        Order No. 13224”:
        shall
        mean the Executive Order No. 13224 on Terrorist Financing, effective
        September 24, 2001, as the same has been, or shall hereafter be, renewed,
        extended, amended or replaced.

       

      “Existing
        Letters of Credit”:
        those
        Letters of Credit described in Schedule 1.1 attached hereto and incorporated
        herein by reference.

       

      “Extensions
        of Credit”:
        the
        collective reference to Loans made and Letters of Credit issued under this
        Agreement.

       

      “Federal
        Funds Effective Rate”:
        for
        any day, 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 on the next succeeding Business Day by the Federal
        Reserve Bank of New York, or, if such rate is not so published for any day
        which
        is a Business Day, the average of the quotations for the day of such
        transactions received by the Agent from three Federal funds brokers of
        recognized standing selected by it.

       

      “Federal
        Funds Open Rate”
for
        any
        day shall mean the rate per annum determined by the Agent in accordance with
        its
        usual procedures (which determination shall be conclusive absent manifest
        error)
        to be the “open” rate for federal funds transactions as of the opening of
        business for federal funds transactions among members of the Federal Reserve
        System arranged by federal funds brokers on such day, as quoted by Garvin
        Guybutler, any successor entity thereto, or any other broker selected by
        the
        Agent, as set forth on the applicable Telerate display 

       

       

      
        
          
          

        

        
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      page;
        provided, however, that if such day is not a Business Day, the Federal Funds
        Open Rate for such day shall be the Open Rate on the immediately preceding
        Business Day, or if no such rate shall be quoted by a federal funds broker
        at
        such time, such other rate as determined by the Agent in accordance with
        its
        usual procedures.

       

      “Fixed
        Charge Coverage Ratio”:
        for
        any period, the ratio of (i) EBITDA minus capital expenditures incurred for
        maintenance of equipment (but in no event less than $2,500,000 per four quarter
        period) to (ii) the sum of interest expenses, income tax expenses, scheduled
        principal payments (other than principal payments on the Revolver Facility),
        dividend Distributions and Distributions made in connection with the repurchase
        or redemption of Capital Stock, in each case as determined for the Company
        and
        its consolidated Subsidiaries in accordance with GAAP.

       

      “GAAP”:
        at any
        time with respect to the determination of the character or amount of any
        asset
        or liability or item of income or expense, or any consolidation or other
        accounting computation, generally accepted accounting principles as in effect
        in
        the United States on the date of, or at the end of the period covered by,
        the
        financial statements from which such asset, liability, item of income, or
        item
        of expense, is derived, or, in the case of any such computation, as in effect
        on
        the date when such computation is required to be determined, consistently
        applied.

       

      “Governmental
        Acts”:
        has
        the meaning assigned to such term in subsection 2.8(j).

       

      “Governmental
        Authority”:
        any
        nation or government, any state or other political subdivision thereof and
        any
        entity exercising executive, legislative, judicial, regulatory or administrative
        functions of or pertaining to government.

       

      “Guaranty
        Obligation”:
        as to
        any Person, any guarantee of payment or performance by such Person of any
        Indebtedness or other obligation of any other Person, or any agreement to
        provide financial assurance with respect to the financial condition, or the
        payment of the obligations of, such other Person (including, without limitation,
        purchase or repurchase agreements, reimbursement agreements with respect
        to
        letters of credit or acceptances, indemnity arrangements, grants of security
        interests to support the obligations of another Person, keepwell agreements
        and
        take-or-pay or through-put arrangements) which has the effect of assuring
        or
        holding harmless any third Person against loss with respect to one or more
        obligations of such third Person; provided,
        however,
        the
        term Guaranty Obligation shall not include endorsements of instruments for
        deposit or collection in the ordinary course of business. The amount of any
        Guaranty Obligation of any Person shall be deemed to be the greater of (a)
        an
        amount equal to the stated or determinable amount of the primary obligation
        in
        respect of which such Guaranty Obligation is made and (b) the maximum amount
        for
        which such contingently liable Person may be liable pursuant to the terms
        of the
        instrument embodying such Guaranty Obligation, unless such primary obligation
        and the maximum amount for which such contingently liable Person may be liable
        are not stated or determinable, in which case the amount of such Guaranty
        Obligation shall be such contingently liable Person’s maximum reasonably
        anticipated liability in respect thereof as determined by the Company in
        good
        faith. Guaranty Obligations of any Person shall include the amount of any
        future
“earn-out” or similar payments to be made to any 

       

       

      
        
          
          

        

        
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      other
        Person in connection with a Permitted Acquisition to the extent such payments
        are required under GAAP to be reflected as indebtedness on the financial
        statements of the contingently liable Person.

       

      “Hunting
        Park Mortgage”:
        shall
        mean that certain mortgage granted by the Company in favor of Citizens Bank
        of
        Pennsylvania as security for the Citizens Secured Term Loan in accordance
        with
        the terms of the Citizens Loan Agreement.

       

      “Hunting
        Park Property”:
        shall
        mean the real property located at 2801 Hunting Park Avenue, Philadelphia,
        Pennsylvania 19129-1306.

       

      “Increased
        Commitment and Acceptance”:
        shall
        mean any Increased Commitment and Acceptance executed and delivered by a
        Bank,
        the Borrowers’ Representative and the Agent, substantially in the form of
Exhibit E
        hereto,
        as amended, supplemented or otherwise modified from time to time.

       

      “Indebtedness”:
        of any
        Person at any date, without duplication:

       

      (a)  all
        indebtedness of such Person for borrowed money or for the deferred purchase
        price of property or services (other than current trade liabilities incurred
        in
        the ordinary course of business and payable in accordance with customary
        practices), including earn-outs and similar obligations,

       

      (b)  any
        other
        indebtedness which is evidenced by a note, bond, debenture or similar
        instrument,

       

      (c)  all
        Capital Lease Obligations of such Person,

       

      (d)  all
        obligations of such Person in respect of outstanding letters of credit,
        acceptances and similar obligations created for the account of such
        Person,

       

      (e)  all
        liabilities secured by any Lien on any property owned by such Person even
        though
        such Person has not assumed or otherwise become liable for the payment
        thereof,

       

      (f)  net
        liabilities of such Person under interest rate cap agreements, interest rate
        swap agreements, foreign currency exchange agreements, netting agreements
        and
        other hedging agreements or arrangements (calculated on a basis satisfactory
        to
        the Agent and in accordance with accepted practice),

       

      (g)  withdrawal
        liabilities of such Person or any Commonly Controlled Entity under a Plan,
        and

       

      (h)  all
        Guaranty Obligations of such Person with respect to liabilities of a type
        described in any of clauses (a) through (g) of this definition.

       

      The
        Indebtedness of any Person shall include any Indebtedness of any partnership
        in
        which such Person is the general partner.

       

       

      
        
          
          

        

        
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      “Insolvency”:
        with
        respect to any Multiemployer Plan, the condition that such Plan is insolvent
        within the meaning of Section 4245 of ERISA.

       

      “Insolvent”:
        pertaining to a condition of Insolvency.

       

      “Intellectual
        Property”:
        has
        the meaning assigned to such term in Section 3.16.

       

      “Intercreditor
        Agreement”:
        shall
        mean that certain Intercreditor Agreement dated as of the date hereof among
        the
        Borrowers’ Representative, the Agent (on behalf of the Banks) and Citizens Bank
        of Pennsylvania substantially in the form of Exhibit G
        hereto,
        as amended, supplemented or otherwise modified from time to time.

       

      “Interest
        Payment Date”:
        (a) as
        to any Base Rate Loan, the last Business Day of each March, June, September
        and
        December while such Loan is outstanding, (b) as to any LIBOR Loan having
        an
        Interest Period of three months or less, the last day of such Interest Period,
        and (c) as to any LIBOR Loan having an Interest Period longer than three
        months,
        the day which is (i) three months after the first day of such Interest Period
        and (ii) the last day of such Interest Period.

       

      “Interest
        Period”:
        with
        respect to any LIBOR Loan:

       

      (a)  initially
        the period commencing on the borrowing or continuation date, as the case
        may be,
        and ending one, two, three or six months thereafter, as selected by the
        Borrowers in their Notice of Borrowing, given with respect thereto;
        and

       

      (b)  thereafter,
        each period commencing on the last day of the next preceding Interest Period
        applicable to such LIBOR Loan and ending one, two, three or six months
        thereafter, as selected by the Borrowers by irrevocable notice to the Agent
        in a
        Notice of Borrowing not less than three Business Days prior to the last day
        of
        the then current Interest Period with respect thereto;

       

      provided,
        that
        the foregoing provisions relating to Interest Periods are subject to the
        following:

       

      (i)  if
        any
        Interest Period would end on a day other than a Business Day, such Interest
        Period shall be extended to the next succeeding Business Day unless such
        next
        succeeding Business Day would fall in the next calendar month, in which case
        such Interest Period shall end on the next preceding Business Day;

       

      (ii)  any
        Interest Period that begins on the last Business Day of a calendar month
        (or on
        a day for which there is no numerically corresponding day in the calendar
        month
        at the end of such Interest Period) shall end on the last Business Day of
        a
        calendar month;

       

      (iii)  no
        interest period shall extend beyond the Revolver Termination Date;
        and

       

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      (iv)  the
        Borrowers shall select Interest Periods so as not to require a payment or
        prepayment of any LIBOR Loan during an Interest Period for such
        Loan.

       

      “Issuing
        Bank”:
        PNC
        Bank, National Association, or such other Bank as designated by the Company
        to
        be the Issuing Bank and approved by the Required Banks, in its capacity as
        issuer of any Letter of Credit.

       

      “Joinder
        and Assumption Agreement”:
        a
        Joinder and Assumption Agreement substantially in the form of Exhibit D
        hereto
        pursuant to which a Subsidiary shall join this Agreement and other Loan
        Documents, as amended, supplemented or otherwise modified from time to
        time.

       

      “Law”:
        any
        law (including common law), constitution, statute, treaty, regulation, rule,
        ordinance, opinion, release, ruling, order, injunction, writ, decree or award
        of
        any Governmental Authority.

       

      “Lending
        Office”:
        the
        lending office(s) of the Banks set forth on Schedule I hereto or notice of
        which
        has been given to the Agent in accordance with the provisions of this
        Agreement.

       

      “Letter
        of Credit”:
        has
        the meaning assigned to that term in subsection 2.8(a).

       

      “Letter
        of Credit Coverage Requirement”:
        with
        respect to each Letter of Credit at any time, 102% of the maximum amount
        available to be drawn thereunder at such time (determined without regard
        to
        whether any conditions to drawing could be met at such time).

       

      “Letter
        of Credit Fee”:
        has
        the meaning assigned to that term in subsection 2.8(b).

       

      “Letter
        of Credit Fee Rate”:
        on any
        date, the percentage per annum set forth below opposite the Leverage Ratio
        shown
        on the last Compliance Certificate delivered by the Borrowers to the Agent
        pursuant to subsection 5.2(b) prior to such date:

       

      
        	
                Level

              	
                Leverage
                  Ratio

              	
                Letter
                  of Credit Fee Rate

              
	 	 	 
	
                I

              	
                Less
                  than 1.00 to 1.00

              	
                0.75%

              
	 	 	 
	
                II

              	
                Greater
                  than or equal to 1.00 to 1.00 but less than 2.00 to 1.00

              	
                1.00%

              
	 	 	 
	
                III

              	
                Greater
                  than or equal to 2.00 to 1.00

              	
                1.25%

              
	 	 	 

      

      ;
        provided,
        however,
        that
        (a) adjustments, if any, to the Letter of Credit Fee Rate resulting from a
        change in the Leverage Ratio shall be effective five Business Days after
        the
        Agent has received a Compliance Certificate, (b) in the event that no
        Compliance Certificate has been delivered for a 

       

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      fiscal
        quarter prior to the last date on which it can be delivered without violation
        of
        subsection 5.2(b), the Letter of Credit Fee Rate from such date until such
        Compliance Certificate is actually delivered shall be that applicable under
        Level III, (c) in the event that the actual Leverage Ratio for any fiscal
        quarter is subsequently determined to be greater than or less than that set
        forth in the Compliance Certificate for such fiscal quarter, the Letter of
        Credit Fee Rate shall be recalculated for the applicable period based upon
        such
        actual Leverage Ratio and (d) anything in this definition to the contrary
        notwithstanding, until receipt by the Agent of the Compliance Certificate
        for
        the fiscal year ending December 31, 2005, the Letter of Credit Fee Rate
        shall be that applicable under Level III. Any additional fees on the Letters
        of
        Credit resulting from the operation of clause (c) above shall be payable
        by the
        Borrowers jointly and severally to the Banks within five (5) days after receipt
        of a written demand therefor from the Agent.

       

      “Letter
        of Credit Obligations”:
        at any
        time, an amount equal to the sum of (a) 100% of the maximum amount available
        to
        be drawn under all Letters of Credit outstanding at such time (determined
        without regard to whether any conditions to drawing could be met at such
        time)
        and (b) the aggregate amount of drawings under Letters of Credit which have
        not
        then been reimbursed pursuant to subsection 2.8(d)(i).

       

      “Letter
        of Credit Participant”:
        in
        respect of each Letter of Credit, each Bank (other than the Issuing Bank)
        in its
        capacity as the holder of a participating interest in such Letter of
        Credit.

       

      “Leverage
        Ratio”
as
        of
        the last day of any fiscal quarter, the ratio of Total Senior Funded Debt
        on
        such date to (ii) EBITDA on such date.

       

      “LIBOR
        Loan”:
        any
        Loan bearing interest at a rate determined by reference to the LIBOR
        Rate.

       

      “LIBOR
        Rate”:
        with
        respect to the Revolving Loans comprising any Tranche to which the LIBOR
        Rate
        applies for any Interest Period, the interest rate per annum determined by
        the
        Agent by dividing (the resulting quotient rounded upward to the nearest 1/100th
        of 1% per annum) (i) the rate of interest determined by the Agent in
        accordance with its usual procedures (which determination shall be conclusive
        absent manifest error) to be the London interbank offered rate of interest
        per
        annum for Dollars quoted by the British Bankers’ Association set forth on
        Moneyline Telerate (or appropriate successor, or if the British Bankers’
Association or its successor ceases to provide such quotes, a comparable
        replacement determined by the Agent), display page 3750 (or such other display
        page on the Moneyline Telerate service as may replace display page 3750)
        at
        approximately 11:00 a.m., London time, two (2) Business Days prior to the
        first day of such Interest Period for an amount comparable to such Tranche
        and
        having a borrowing date and a maturity comparable to such Interest Period
        by
        (ii) a number equal to 1.00 minus the Eurocurrency Rate Reserve Percentage.
        Such LIBOR Rate may also be expressed by the following formula:

       

      
        	
                 

                 

                LIBOR
                  Rate =  

              	
                Average
                  of London interbank offered rates quoted by British Bankers’ Association
                  or appropriate successor as shown on Moneyline 

                Telerate
                  Service display page
                  3750                        

                                                                          
                  

                1.00
                  - Eurocurrency Rate Reserve Percentage

                 

              

      

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      The
        LIBOR
        Rate shall be adjusted with respect to any LIBOR Loan outstanding on the
        effective date of any change in the Eurocurrency Rate Reserve Percentage
        as of
        such effective date. The Agent shall give prompt notice to the Borrowers
        of the
        LIBOR Rate as determined or adjusted in accordance herewith, which determination
        shall be conclusive absent manifest error.

       

      “Lien”:
        any
        mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance,
        lien (statutory or other), charge or other security interest or any preference,
        priority or other security agreement or preferential arrangement of any kind
        or
        nature whatsoever (including, without limitation, any conditional sale or
        other
        title retention agreement and any Capital Lease having substantially the
        same
        economic effect as any of the foregoing).

       

      “Loan
        Documents”:
        this
        Agreement, the Notes, the Joinder and Assumption Agreements, the Intercreditor
        Agreement and the Applications and all other documents, instruments, agreements
        or certificates delivered in connection herewith, in each case, as the same
        may
        be supplemented or amended from time to time in accordance herewith or
        therewith, and “Loan
        Document”
shall
        mean any of the Loan Documents.

       

      “Loans”:
        the
        collective reference to the Revolving Loans and the Swing Line
        Loans.

       

      “Material
        Adverse Effect”:
        a
        material adverse effect on (a) the business, operations, property or financial
        condition of the Borrowers taken as a whole, (b) the ability of the Company
        and
        the other Borrowers to perform their obligations under this Agreement, the
        Notes
        or any other Loan Document or (c) the validity or enforceability of this
        Agreement, the Notes or any of the other Loan Documents or the rights or
        remedies of the Agent or the Banks hereunder or thereunder.

       

      “Materials
        of Environmental Concern”:
        any
        gasoline or petroleum (including crude oil or any fraction thereof) or petroleum
        products or any hazardous or toxic substances, materials or wastes, defined
        or
        regulated as such in or under any Environmental Law, including, without
        limitation, asbestos, polychlorinated biphynels, and ureaformaldehyde
        insulation.

       

      “Moody’s”:
        Moody’s Investors Services, Inc.

       

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

       

      “New
        Bank”:
        has
        the meaning assigned to such term in Section 9.6(j).

       

      “New
        Bank Joinder”:
        any
        New Bank Joinder executed and delivered by a financial institution desiring
        to
        become a Bank hereunder, the Borrowers’ Representative and the Agent,
        substantially in the form of Exhibit F
        hereto,
        as amended, supplemented or otherwise modified from time to time.

       

      “Notes”:
        means
        the Revolver Notes and the Swing Line Note.

       

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      “Notice
        of Borrowing”:
        with
        respect to a Loan of any Type, a notice from the Borrowers’ Representative in
        respect of such Loan, in the form of Notice of Borrowing attached hereto
        as
Exhibit C.

       

      “Offered
        Amount”:
        has
        the meaning assigned to such term in Section 2.14(d).

       

      “Participant”:
        has
        the meaning assigned to such term in subsection 9.6(f).

       

      “PBGC”:
        the
        Pension Benefit Guaranty Corporation established pursuant to Subtitle A of
        Title IV of ERISA.

       

      “Permitted
        Acquisition”:
        an
        acquisition by a Borrower of all or substantially all of the stock or assets
        of
        a Person engaged in business substantially similar to the Company or another
        Borrower or a business related to the manufacture or distribution of food
        products; provided
        that, at
        the time that any definitive agreement is entered into in respect of such
        acquisition, no Default or Event of Default shall exist or would exist if
        such
        acquisition were consummated on such date (assuming for purposes of the
        covenants contained in Section 6.1 that pro forma
        adjustments are made to the financial statements of the Company and its
        Subsidiaries reflecting such acquisition); provided
        further,
        that, without the consent of the Required Banks, no such acquisition may
        be made
        if, after giving pro forma effect to such acquisition, (i) the Leverage Ratio
        as
        of the end of the most recent fiscal quarter preceding such acquisition (the
        “Test
        Date”)
        would
        be less than 2.25 to 1.0 and the aggregate consideration paid by the Borrowers
        with respect to all Permitted Acquisitions (including the proposed acquisition)
        (including earnouts, payments under non-compete arrangements and assumption
        of
        Indebtedness) (“Consideration”)
        would
        exceed $10,000,000 during the Revolver Commitment Period (the “Test
        Period”),
        or
        (ii) the Leverage Ratio as of the Test Date would be less than 2.50 to 1.0,
        but
        greater than 2.25 to 1.0, and the Consideration during the Test Period would
        exceed $5,000,000; and provided
        further,
        that if the Consideration to be paid by the Borrowers with respect to any
        such
        acquisition shall equal or exceed $5,000,000, then the Person to be acquired
        shall have positive operating income for the twelve month period ending on
        the
        last day of the most recently completed fiscal quarter.

       

      “Permitted
        Investments”:
        (a)
        marketable direct obligations issued or unconditionally guaranteed by the
        United
        States of America or any agency or instrumentality thereof or guaranteed
        by the
        United States of America or any agency or instrumentality thereof, in each
        case
        maturing within one year from the date of acquisition thereof;

       

      (b)  marketable
        general obligations issued by any state of the United States of America or
        any
        political subdivision of any such state or any public instrumentality thereof
        maturing within six months from the date of acquisition, having one of the
        two
        highest ratings generally obtainable from either S&P or Moody’s at the date
        of acquisition;

       

      (c)  commercial
        paper maturing no more than six months from the date of acquisition thereof
        and,
        at the time of acquisition, having a rating of A-1 (or the equivalent) or
        higher
        from S&P and P-1 (or the equivalent) or higher from Moody’s;

       

      (d)  money
        market mutual funds which make investments principally in securities of the
        type
        described in clauses (a) through (c) above in accordance with the 

       

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      regulations
        of the Securities and Exchange Commission under the Investment Company Act
        of
        1940, as amended; and

       

      (e)  fully
        collateralized repurchase agreements with a term of not more than 30 days
        for
        underlying securities of the type described in paragraphs (a) and (b) of
        this
        definition;

       

      provided,
        that,
        in each
        case, such obligations are payable in U.S. Dollars.

       

      “Permitted
        Liens”:
        (a)
        any
        Liens for current taxes, assessments and other governmental charges not yet
        due
        and payable or being contested in good faith by any Borrower by appropriate
        proceedings and for which adequate reserves have been established by the
        Company
        and its Subsidiaries on a consolidated basis as reflected in its financial
        statements;

       

      (b)  any
        mechanic’s, landlord’s, materialman’s, carrier’s, warehousemen’s or similar
        Liens for sums not yet due or being contested in good faith by the any Borrower
        by appropriate proceedings and for which adequate reserves have been established
        by the Company and its Subsidiaries on a consolidated basis as reflected
        in its
        financial statements;

       

      (c)  existing
        building restrictions, ordinances, privileges, rights of utility companies,
        easements, rights-of-way, restrictions and other similar encumbrances on
        the
        real property or fixtures of the Borrowers existing as of the date hereof
        and
        such Liens hereafter incurred in the ordinary course of business, which
        individually or in the aggregate are not substantial in amount and which
        do not
        in any case materially detract from the value to the Borrowers of the property
        subject thereto or interfere with the ordinary conduct of the business of
        the
        Borrowers;

       

      (d)  Liens
        (other than Liens imposed on any property of the Borrowers or any ERISA
        Affiliate pursuant to ERISA or Section 412 of the Code) incurred or
        deposits made in the ordinary course of business, including Liens in connection
        with workers’ compensation, unemployment insurance and other types of social
        security and Liens to secure performance of tenders, statutory obligations,
        surety and appeal bonds, bids, leases that are not Capital Leases, performance
        bonds, sales contracts and other similar obligations, in each case, not incurred
        in connection with the obtaining of credit or the payment of a deferred purchase
        price, and which do not, in the aggregate, result in a Material Adverse
        Effect;

       

      (e)  Purchase
        Money Security Interests or Liens created pursuant to Capital Leases;
provided,
        that
        (x) such Liens shall be created simultaneously with the acquisition of the
        property which is subject to such Lien, (y) such Liens do not at any time
        encumber any property other than such property and (z) the Liens are not
        modified to secure any Indebtedness other than that used to acquire such
        property;

       

      (f)  Liens
        existing on real property or equipment of a Subsidiary which Lien existed
        at the
        time of the acquisition of such Subsidiary;

       

      (g)  Liens
        existing upon the date hereof as set forth in Schedule II
        hereto;

       

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      (h)  judgment
        and other similar Liens arising in connection with court proceedings, in
        existence less than thirty (30) days after entry thereof or with respect
        to
        which execution has been stayed or the payment of which is covered in full
        (subject to a customary deductible) by insurance maintained with responsible
        insurance companies and the claims secured thereby are being actively contested
        in good faith and by appropriate legal proceedings;

       

      (i)  Liens
        in
        favor of any governmental agency or authority for the purpose of financing,
        through industrial revenue bonds or notes, the construction, acquisition
        or
        purchase of facilities, or machinery, equipment or other assets, or of any
        air,
        water or solid waste pollution control facilities to be used in connection
        with
        any such property;

       

      (j)  other
        Liens incidental to the conduct of the Borrowers’ businesses conducted in the
        ordinary course (including without limitation, Liens on goods securing trade
        letters of credit issued in respect of importation of goods in the ordinary
        course of business) or the ownership of any Borrower’s property and assets which
        were not incurred in connection with the borrowing of money or the obtaining
        of
        advances or credit, except as provided herein, and which do not in the aggregate
        materially detract from the value of such Borrower’s property or assets or
        materially impair the use thereof in its business;

       

      (k)  the
        Lien
        evidenced by the Hunting Park Mortgage;

       

      (l)  Liens
        in
        favor of the Company or another Borrower on the assets of any Borrower;
        and

       

      (m)  any
        other
        Liens permitted under the terms of this Agreement.

       

      “Person”:
        an
        individual, partnership, corporation, limited liability company, business
        trust,
        joint stock company, trust, unincorporated association, joint venture,
        Governmental Authority or other entity of whatever nature.

       

      “Plan”:
        at a
        particular time, any employee benefit plan which is covered by ERISA and
        in
        respect of which any Borrower or a Commonly Controlled Entity is (or, if
        such
        plan were terminated at such time, would under Section 4069 of ERISA be deemed
        to be) an “employer” as defined in Section 3(5) of ERISA.

       

      “Prime
        Rate”:
        the
        rate of interest per annum publicly announced from time to time by PNC Bank,
        National Association as its prime rate in effect at its principal office
        in
        Philadelphia, Pennsylvania, which rate may not be the lowest rate then being
        charged by the Bank to commercial borrowers; each change in the Prime Rate
        shall
        be effective on the date such change is publicly announced as
        effective.

       

      “Principal
        Office”:
        the
        main banking office of the Agent in Philadelphia, Pennsylvania.

       

      “Properties”:
        the
        collective reference to the facilities and properties owned, leased or operated
        by the Borrowers.

       

      “Proposed
        New Bank”:
        has
        the meaning assigned to such term in Section 2.14(d).

       

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      “Publication
        500”:
        has
        the meaning assigned to such term in subsection 2.8(f).

       

      “Purchase
        Money Security Interest”:
        Liens
        upon tangible personal property securing loans to the Borrowers or deferred
        payments by the Borrowers for the purchase of such tangible personal property,
        in each case securing amounts which do not exceed the purchase price of the
        property subject to such security interests.

       

      “Purchasing
        Bank”:
        has
        the meaning assigned to such term in subsection 9.6(b).

       

      “Regulation
        U”:
        Regulation U of the Board of Governors of the Federal Reserve System as from
        time to time in effect, and all official rulings and interpretations thereunder
        or thereof.

       

      “Regulation
        X”:
        Regulation X of the Board of Governors of the Federal Reserve System as from
        time to time in effect, and all official rulings and interpretations thereunder
        or thereof.

       

      “Reimbursement
        Obligation”:
        in
        respect of each Letter of Credit, the obligation of the Borrowers to reimburse
        the Issuing Bank for all drawings made thereunder in accordance with subsection
        2.8(d) and the Application related to such Letter of Credit for amounts drawn
        under such Letter of Credit.

       

      “Reorganization”:
        with
        respect to any Multiemployer Plan, the condition that such plan is in
        reorganization within the meaning of Section 4241 of ERISA.

       

      “Reportable
        Event”:
        any of
        the events set forth in Section 4043(c)(1), (2), (4), (5), (6), (10) and
        (13) of
        ERISA.

       

      “Requested
        Increase”:
        has
        the meaning assigned to such term in Section 2.14(d).

       

      “Required
        Banks”:
        at any
        time, those Banks holding (a) 662⁄3% of the Revolver Commitments of all the Banks
        or (b) in the event the Revolver Commitments shall have expired or been
        terminated, 662⁄3% of the Revolver Exposure of all the Banks; provided, that in
        the event any of the Banks shall have failed to make a Revolving Loan or
        purchase participations in Letters of Credit or Swing Line Loans required
        pursuant to the terms of this Agreement, for so long as such failure continues
        there shall be excluded from the determination of Required Banks the Revolver
        Commitment and Revolver Exposure of such bank at such time.

       

      “Requirement
        of Law”:
        as to
        any Person, the Articles or Certificate of Incorporation and By-Laws or other
        organizational or governing documents of such Person, and any law, treaty,
        rule
        or regulation or determination of an arbitrator or a court or other Governmental
        Authority, in each case binding upon such Person or any of its property or
        to
        which such Person or any of its property is subject.

       

      “Responsible
        Officer”:
        with
        respect to any Borrower, the chief executive officer, president, vice president
        - finance, treasurer or chief financial officer of such Borrower. Unless
        otherwise qualified, all references to a “Responsible Officer” in this Agreement
        shall refer to a Responsible Officer of the Borrowers’
Representative.

       

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      “Revolver
        Commitment”:
        the
        obligation of any Bank to make Revolving Loans, issue and/or acquire
        participating interests in Letters of Credit and make or participate in Swing
        Line Loans hereunder, in an aggregate amount at any one time outstanding
        not to
        exceed (a) as to any Bank which is an original signatory to this Agreement,
        the
        amount set forth opposite such Bank’s name on Schedule I hereto under the
        caption “Revolver Commitment”, as the same may be changed from time to time in
        accordance with the provisions of this Agreement or (b) as to any Bank which
        is
        not an original signatory to this Agreement but which becomes a Bank by
        executing an Assignment and Acceptance or a New Bank Joinder, the Revolver
        Commitment for such Bank set forth on Schedule I to such Assignment and
        Acceptance or New Bank Joinder, as such amount may be changed from time to
        time
        in accordance with the provisions of this Agreement. The aggregate amount
        of the
        Revolver Commitments on the date hereof is $35,000,000.

       

      “Revolver
        Commitment Period”:
        the
        period from and including the date hereof to but not including the Revolver
        Termination Date.

       

      “Revolver
        Exposure”:
        as to
        any Bank at any date, an amount equal to the sum of (a) the aggregate amount
        of
        all Revolving Loans made by such Bank then outstanding, (b) such Bank’s
        Commitment Percentage of the Letter of Credit Obligations then outstanding
        and
        (c) such Bank’s Commitment Percentage of the aggregate principal amount of Swing
        Line Loans then outstanding.

       

      “Revolver
        Facility”:
        the
        revolving credit facility pursuant to which the Banks have committed to make
        Revolving Loans, issue and/or acquire participating interests in Letters
        of
        Credit hereunder and make or participate in Swing Line Loans.

       

      “Revolver
        Notes”:
        has
        the meaning assigned to such term in Section 2.6(b).

       

      “Revolver
        Termination Date”:
        the
        earlier of (a) September 12, 2010 and (b) the date the Revolver Commitments
        are
        terminated as provided herein.

       

      “Revolving
        Loans”:
        has
        the meaning assigned to such term in Section 2.1(b).

       

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

       

      “Single
        Employer Plan”:
        any
        Plan which is covered by Title IV of ERISA, but which is not a Multiemployer
        Plan.

       

      “Subsidiary”:
        as to
        any Person, a corporation, partnership or other entity of which shares of
        stock
        or other ownership interests having ordinary voting power (other than stock
        or
        such other ownership interests having such power only by reason of the happening
        of a contingency) to elect a majority of the board of directors or other
        governing body of such entity are at the time owned, or the management of
        which
        is otherwise controlled, directly or indirectly through one or more
        intermediaries, or both, by such Person. Unless otherwise qualified, all
        references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer
        to a Subsidiary or Subsidiaries of a Borrower.

       

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      “Swing
        Line Bank”:
        PNC
        Bank, National Association, and any successor thereto, or any other Bank
        to
        which the Swing Line Commitment is assigned.

       

      “Swing
        Line Commitment”:
        the
        obligation of the Swing Line Bank to make Swing Line Loans in an aggregate
        amount at any one time outstanding not to exceed the amount set forth opposite
        the Swing Line Bank’s name on Schedule I hereto under the caption “Swing Line
        Commitment”, as the same may be changed from time to time in accordance with the
        provisions of this Agreement and/or any applicable Assignment and
        Acceptance.

       

      “Swing
        Line Conversion Date”:
        has
        the meaning assigned to such term in subsection 2.3(d).

       

      “Swing
        Line Loan”:
        has
        the meaning assigned to such term in subsection 2.3(a).

       

      “Swing
        Line Note”:
        has
        the meaning assigned to such term in subsection 2.3(c).

       

      “Swing
        Line Repayment Date”:
        has
        the meaning assigned to such term in subsection 2.3(b).

       

      “Tangible
        Net Worth”:
        at any
        time, the net book value of the Shareholders’ equity of the Company as would be
        shown on a consolidated balance sheet at such time minus
        all
        assets which would be considered intangible under GAAP minus
        any
        additional paid in capital attributable to any stock based compensation
        .

       

      “Taxes”:
        has
        the meaning assigned to such term in Section 2.17.

       

      “Total
        Senior Funded Debt”:
        as of
        the last day of any fiscal quarter, without duplication, the aggregate
        consolidated long term and short term senior Indebtedness of the Company
        and its
        consolidated Subsidiaries.

       

      “Tranche”:
        the
        collective reference to (a) LIBOR Loans whose Interest Periods begin on the
        same
        date and end on the same later date (whether or not such Loans originally
        were
        made on the same date), (b) Base Rate Loans and (c) Swing Line Loans bearing
        interest at the Daily LIBOR Rate.

       

      “Type”:
        when
        used in respect of any Loan, shall refer to the Rate by reference to which
        interest on such Loan is determined. For purposes hereof, “Rate” shall include
        the LIBOR Rate, the Base Rate and the Daily LIBOR Rate (in the case of Swing
        Line Loans).

       

      “USA
        Patriot Act”:
        shall
        mean the Uniting Strengthening America by Providing Appropriate Tools Required
        to Intercept and Obstruct Terrorism Act of 2001, Title III of Pub. L.,
        107-56 (signed into law October 26, 2001), as the same has been, or shall
        hereafter be, renewed, extended, amended or replaced.

       

      “Voting
        Stock”:
        Capital Stock of any class or classes of a Person the holders of which are
        ordinarily, in the absence of contingencies, entitled to elect a majority
        of the
        directors (or Persons performing similar functions).

       

       

      
        
          
          

        

        
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      1.2  Other
        Definitional Provisions

       

      (a)  Unless
        otherwise specified therein, all terms defined in this Agreement shall have
        the
        defined meanings when used in the Notes, the other Loan Documents or any
        certificate or other document made or delivered pursuant hereto or
        thereto.

       

      (b)  As
        used
        herein and in the Notes and the other Loan Documents, and in any certificate
        or
        other document made or delivered pursuant hereto or thereto, accounting terms
        relating to the Company and its Subsidiaries not defined in Section 1.1 and
        accounting terms partly defined in Section 1.1, to the extent not defined,
        shall
        have the respective meanings given to them under GAAP.

       

      (c)  The
        words
“hereof”, “herein” and “hereunder” and words of similar import when used in this
        Agreement shall refer to this Agreement as a whole and not to any particular
        provision of this Agreement, and Section, subsection, Schedule and Exhibit
        references are to this Agreement unless otherwise specified.

       

      (d)  The
        meanings given to terms defined in this Agreement shall be equally applicable
        to
        both the singular and plural forms of such terms.

       

       

      SECTION
        2.   LOANS
        AND TERMS OF COMMITMENTS

       

      2.1  The
        Loans

       

      (a)  Revolver
        Facility.
        Subject
        to the terms and conditions hereof including, without limitation, the conditions
        at each Extension of Credit set forth in Section 4.2 hereof, each Bank severally
        (and not jointly) agrees to make revolving credit loans under the Revolver
        Facility (the “Revolving
        Loans”)
        to the
        Borrowers on a joint and several basis from time to time during the Revolver
        Commitment Period in an aggregate principal amount at any one time outstanding
        not to exceed the amount of such Bank’s Revolver Commitment minus the sum of
        such Bank’s Commitment Percentage of (i) all Letter of Credit Obligations then
        outstanding and (ii) the principal amount of all Swing Line Loans then
        outstanding; provided,
        that
        after
        giving effect to each such Revolving Loan, the aggregate Revolver Exposure
        of
        such Bank at such time shall not exceed such Bank’s Revolver Commitment. The
        Revolver Commitments may be increased, reduced or terminated from time to
        time
        pursuant to Section 2.14. Within the foregoing limits, the Borrowers may
        during
        the Revolver Commitment Period borrow, repay and reborrow under the Revolver
        Commitments, subject to and in accordance with the terms and limitations
        hereof.

       

      (b)  The
        Revolving Loans may from time to time be (A) LIBOR Loans, (B) Base
        Rate Loans or (C) a combination thereof, as determined by the Borrowers and
        notified to the Agent in accordance with Sections 2.4 and 2.5; provided,
        that no
        Loan shall be made as a LIBOR Loan after the date that is one month prior
        to the
        Revolver Termination Date.

       

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      2.2  Procedure
        for Revolving
        Loans

       

      (a)  Except
        as
        otherwise provided herein, the Borrowers may from time to time prior to the
        Revolver Termination Date request the Banks to make Revolving Loans by
        delivering to the Agent, not later than 10:00 a.m., Philadelphia time,
        (i) three (3) Business Days prior to the proposed Borrowing Date with
        respect to the making of Loans to which the LIBOR Rate applies and (ii) the
        Business Day of the proposed Borrowing Date with respect to the making of
        a Loan
        to which the Base Rate applies, of a duly completed Notice of Borrowing or
        a
        request by telephone immediately confirmed in writing, it being understood
        that
        the Agent may rely on the authority of any individual making such a telephonic
        request without the necessity of receipt of such written confirmation. Each
        Notice of Borrowing shall be irrevocable and shall specify (i) the proposed
        Borrowing Date; (ii) the aggregate amount of the proposed Loans comprising
        each Tranche, the amount of which shall be in integral multiples of $100,000
        and
        not less than $1,000,000 or, if less, the maximum amount under the Revolver
        Commitment; (iii) whether the LIBOR Rate or the Base Rate shall apply to
        the proposed Loans comprising the applicable Tranche; and (iv) in the case
        of a
        Tranche to which the LIBOR Rate applies, the Interest Period for the proposed
        Loans comprising such Tranche.

       

      (b)  The
        Agent
        shall, promptly after receipt by it of a Notice of Borrowing pursuant to
        this
        Section 2.2, notify the Banks of its receipt of such Notice of Borrowing
        specifying: (i) the proposed Borrowing Date and the time and method of
        disbursement of the Loans requested thereby; (ii) the amount and Type of
        each such Loan and the applicable Interest Period (if any); and (iii) the
        apportionment among the Banks of such Loans as determined by the Agent in
        accordance with Section 2.5. Subject to the terms and conditions hereof,
        each Bank shall remit the principal amount of each Loan to the Agent at the
        Principal Office prior to 2:00 p.m., Philadelphia time on the Borrowing Date
        requested by the Borrowers in funds immediately available to the Agent. Such
        borrowing will then be made available to the Borrowers by the Agent crediting
        the account of the Company on the books of the office specified in subsection
        9.2 with the aggregate of the amounts made available to the Agent by the
        Banks
        and in like funds as received by the Agent. Unless the Agent shall have received
        notice from a Bank prior to the date of any borrowing that such Bank will
        not
        make available to the Agent such Bank’s portion of such borrowing, the Agent may
        assume that such Bank has made such portion available in accordance with
        this
        subsection 2.2(b) and the Agent may, in reliance upon such assumption, make
        available to the Borrowers on such date a corresponding amount. If and to
        the
        extent that any Bank shall not have made such Bank’s pro rata portion of such
        borrowing available to the Agent, such Bank and the Borrowers (without prejudice
        to the Borrowers’ rights against such Bank) severally agree to repay to the
        Agent forthwith on demand such corresponding amount together with interest
        thereon, for each day from the date such amount is made available to the
        Borrowers until the date such amount is repaid to the Agent at (i) in the
        case of the Borrowers, the interest rate applicable at the time to the Loans
        comprising such borrowing and (ii) in the case of such Bank, the Federal
        Funds Effective Rate, provided,
        that,
        if such Bank shall not pay such amount within three Business Days of such
        Borrowing Date, the interest rate on such overdue amount shall, at the
        expiration of such three Business Day period, be the rate per annum applicable
        to Base Rate Loans. If such Bank shall repay to the Agent such corresponding
        amount, such amount shall constitute such Bank’s Loan as part of such borrowing
        for purposes of this Agreement.

       

       

      
        
          
          

        

        
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      (c)  If
        in a
        Notice of Borrowing no election as to the Type of Loan is specified in any
        such
        notice, then the requested Loan shall be a Base Rate Loan. If a LIBOR Loan
        is
        requested but no Interest Period with respect to such Loan is specified in
        any
        such notice, then the Borrowers shall be deemed to have selected an Interest
        Period of one month’s duration.

       

      2.3  Swing
        Line Loans

       

      (a)  Subject
        to the terms and conditions hereof, the Swing Line Bank may in its discretion
        make swing line loans in Dollars (the “Swing
        Line Loans”)
        to the
        Borrowers from time to time during the Revolver Commitment Period in an
        aggregate outstanding principal amount up to the amount of the Swing Line
        Commitment for periods not to exceed seven days as requested by the Borrowers
        and agreed to by the Swing Line Bank; provided, that, no Swing Line Loan
        shall
        be made if, after giving effect to the making of such Swing Line Loan and
        the
        simultaneous application of the proceeds thereof, (x) the aggregate Revolver
        Exposure of all the Banks would exceed the aggregate amount of the Revolver
        Commitments of all of the Banks or (y) the aggregate amount of all Revolving
        Loans made by a Bank plus such Bank’s Commitment Percentage of the amount of
        Swing Line Loans and Letter of Credit Obligations then outstanding would
        exceed
        its Revolver Commitment. Within the foregoing limits, the Borrowers may during
        the Revolver Commitment Period borrow, repay and reborrow under the Swing
        Line
        Commitment, subject to and in accordance with the terms and limitations hereof.
        The interest rate for a Swing Line Loan shall be the Daily LIBOR Rate plus
        the
        Applicable Margin (or such rate that is mutually agreed to by the Borrower’
Representative and the Swing Line Bank in writing at the time the Swing Line
        Loan is made) or, if the Cash Management Agreement (as defined in clause
        (i)
        below are in affect, at the rate determined in accordance with the Cash
        Management Agreement.

       

      (b)  The
        Borrowers may request a Swing Line Loan to be made on any Business Day. Each
        request for a Swing Line Loan shall be in the form of a Notice of Borrowing
        (or
        a request by telephone immediately confirmed in writing, it being understood
        that the Swing Line Bank may rely on the authority of any individual making
        such
        telephonic request without the necessity of receipt of such written
        confirmation) and received by the Agent not later than 11:00 a.m.
        (Philadelphia time) on the Business Day such Swing Line Loan is to be made,
        specifying in each case (i) the amount to be borrowed, (ii) the requested
        borrowing date, and (iii) the date such Swing Line Loan is to be repaid, if
        applicable (the “Swing
        Line Repayment Date”).
        The
        request for such Swing Line Loan shall be irrevocable. Provided that all
        applicable conditions precedent contained herein have been satisfied, the
        Swing
        Line Bank shall, not later than 4:00 p.m., Philadelphia time, on the date
        specified in the Borrowers’ request for such Swing Line Loan, make such Swing
        Line Loan by crediting the Borrowers’ deposit account with the Swing Line
        Bank.

       

      (c)  The
        obligation of the Borrowers to repay the Swing Line Loans shall be evidenced
        by
        a promissory note of the Borrowers dated the date hereof, payable to the
        order
        of the Swing Line Bank in the principal amount of the Swing Line Commitment
        and
        substantially in the form of Exhibit A-2
        (as
        amended, supplemented or otherwise modified from time to time, the “Swing
        Line Note”).

       

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      (d)  Swing
        Line Loans and accrued interest thereon shall be repaid on the earlier of
        (1)
        the Revolver Termination Date, (2) the Swing Line Repayment Date for such
        Swing
        Line Loan or (3) the seventh day after the date such Swing Line Loan was
        made
        (any such date being the “Swing
        Line Conversion Date”).
        Unless the Borrowers shall have notified the Agent prior to 11:00 a.m.,
        Philadelphia time, on such Swing Line Conversion Date that the Borrowers
        intend
        to repay such Swing Line Loan with funds other than the proceeds of a Revolving
        Loan, the Borrowers shall be deemed to have given notice to the Agent requesting
        the Banks to make Revolving Loans which shall earn interest at the Base Rate
        in
        effect on the Swing Line Conversion Date in an aggregate amount equal to
        the
        amount of such Swing Line Loan plus interest thereon, and subject to
        satisfaction or waiver of the conditions specified in Section 4.2, the
        Banks shall, on the Swing Line Conversion Date, make Revolving Loans, which
        shall earn interest at the Base Rate, in an aggregate amount equal to the
        amount
        of such Swing Line Loan plus interest thereon, the proceeds of which shall
        be
        applied directly by the Agent to repay the Swing Line Bank for such Swing
        Line
        Loan plus accrued interest thereon; and provided, further, that if for any
        reason the proceeds of such Revolving Loans are not received by the Swing
        Line
        Bank on the Swing Line Conversion Date in an aggregate amount equal to the
        amount of such Swing Line Loan plus accrued interest, the Borrowers shall
        reimburse the Swing Line Bank on the day immediately following the Swing
        Line
        Conversion Date, in same day funds, in an amount equal to the excess of the
        amount of such Swing Line Loan over the aggregate amount of such Revolving
        Loans, if any, received plus accrued interest thereon.

       

      (e)  In
        the
        event that the Borrowers shall fail to repay the Swing Line Bank as provided
        in
        this Section 2.3(e) in an amount equal to the amount required under
        Section 2.3(d), the Agent shall promptly notify each Bank of the unpaid
        amount of such Swing Line Loan and of such Bank’s respective participation
        therein in an amount equal to such Bank’s pro rata share of such Swing Line Loan
        (based on its Commitment Percentage). Each Bank shall make available to the
        Agent for payment to the Swing Line Bank an amount equal to its respective
        participation therein (including without limitation its pro rata share of
        accrued but unpaid interest thereon), in same day funds, at the office of
        the
        Agent specified in such notice, not later than 11:00 a.m., Philadelphia
        time, on the Business Day after the date the Agent notifies each Bank. In
        the
        event that any Bank fails to make available to the Agent the amount of such
        Bank’s participation in such unpaid amount as provided herein, the Swing Line
        Bank shall be entitled to recover such amount on demand from such Bank together
        with interest thereon at a rate per annum equal to the Federal Funds Effective
        Rate for each day during the period between the Swing Line Conversion Date
        and
        the date on which any Bank makes available its participation in such unpaid
        amount. The failure of any Bank to make available to the Agent its pro rata
        share of any such unpaid amount shall not relieve any other Bank of its
        obligations hereunder to make available to the Agent its pro rata share of
        such
        unpaid amount on the Swing Line Conversion Date. The Agent shall distribute
        to
        each Bank which has paid all amounts payable by it under this Section 2.3(e)
        with respect to the unpaid amount of any Swing Line Loan, such Bank’s pro rata
        share of all payments received by the Agent from the Borrowers in repayment
        of
        such Swing Line Loan when such payments are received. Notwithstanding anything
        to the contrary herein, each Bank which has paid all amounts payable by it
        under
        this Section 2.3(e) shall have a direct right to repayment of such amounts
        from
        the Borrowers subject to the procedures for repaying Banks set forth in this
        Section 2.3(e) and the provisions of Section 9.8.

       

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      (f)  In
        the
        event the Revolver Commitments are terminated in accordance with the terms
        hereof, the Swing Line Commitment shall also be terminated automatically.
        In the
        event the Borrowers reduce the Revolver Commitment to less than the Swing
        Line
        Commitment, the Swing Line Commitment shall immediately be reduced to an
        amount
        equal to the Revolver Commitment. In the event the Borrowers reduce the Revolver
        Commitment to less than the outstanding principal amount of the Swing Line
        Loans, the Borrowers shall immediately repay the amount by which the outstanding
        Swing Line Loans exceeds the Swing Line Commitment as so reduced plus accrued
        interest thereon.

       

      (g)  At
        no
        time shall there be more than two outstanding Swing Line Loans. Each Swing
        Line
        Loan shall be in an original principal amount of $100,000 or a whole multiple
        thereof.

       

      (h)  The
        Borrowers shall have the right at any time and from time to time to prepay
        the
        Swing Line Loans, in whole or in part, without premium or penalty (but in
        any
        event subject to Section 2.18), upon prior written, facsimile or telephonic
        notice to the Swing Line Bank given no later than 11:00 a.m., Philadelphia
        time, on the date of any proposed prepayment. Each notice of prepayment shall
        specify the Swing Line Loan to be prepaid and the amount to be prepaid (which
        shall be in the principal amount of $100,000 or in integral amounts of $50,000
        in excess thereof) , shall be irrevocable and shall commit the Borrowers
        to
        prepay such amount on such date, with accrued interest thereon and any amounts
        owed under Section 2.18 hereof.

       

      (i)  In
        addition to making Swing Line Loans pursuant to the foregoing provisions
        of this
        Section 2.3, without the requirement for a specific request from the Borrowers
        pursuant to Section 2.3(b), the Swing Line Bank may make Swing Line Loans
        to the
        Borrowers in accordance with the provisions of the agreements between the
        Borrowers and the Swing Line Bank relating to the Borrowers’ deposit, sweep and
        other accounts at the Swing Line Bank and related arrangements and agreements
        regarding the management and investment of the Borrowers’ cash assets as in
        effect from time to time (the “Cash
        Management Agreements”)
        to the
        extent of the daily aggregate net negative balance in the Borrowers’ accounts
        which are subject to the provisions of the Cash Management Agreements. Swing
        Line Loans made pursuant to this Section 2.3(i) in accordance with the
        provisions of the Cash Management Agreements shall (i) be subject to the
        limitations as to aggregate amount set forth in Section 2.3(a), (ii) not
        be
        subject to the limitations as to number or individual amount set forth in
        Sections 2.3(g) or the repayment provisions of Section 2.3(d), (iii) be payable
        by the Borrowers, both as to principal and interest, at the times set forth
        in
        the Cash Management Agreements (but in no event later than the Revolver
        Termination Date), (iv) not be made at any time after the Swing Line Bank
        has
        notice of the occurrence of a Default or Event of Default, (v) if not repaid
        by
        the Borrowers in accordance with the provisions of the Cash Management
        Agreements, be subject to each Bank’s obligation to purchase participating
        interests therein pursuant to Section 2.3(e), and (vi) except as provided
        in the
        foregoing subsections (i) through (v), be subject to all of the terms and
        conditions of this Section 2.3.

       

      2.4  Conversion
        and Continuation Options

       

      .
        The
        Borrowers shall have the right at any time upon prior irrevocable notice
        to the
        Agent (i) not later than 10:00 a.m., Philadelphia time, one Business Day
        prior to conversion, to convert any LIBOR Loan to a Base Rate Loan and (ii)
        not
        later than 10:00 a.m., Philadelphia time, three Business Days prior to
        conversion or continuation to convert any Base Rate Loan 

       

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      into
        a
        LIBOR Loan or continue any LIBOR Loan as a LIBOR Loan for any additional
        Interest Period, subject in each case to the following:

       

      (a)  a
        LIBOR
        Loan may not be converted at a time other than the last day of the Interest
        Period applicable thereto;

       

      (b)  any
        portion of a Loan maturing or required to be repaid in less than one month
        may
        not be converted into or continued as a LIBOR Loan;

       

      (c)  no
        LIBOR
        Loan may be continued as such and no Base Rate Loan may be converted to a
        LIBOR
        Loan when any Default has occurred and is continuing and the Agent or the
        Required Banks have determined that such a continuation is not appropriate;
        and

       

      (d)  any
        portion of a LIBOR Loan that cannot be converted into or continued as a LIBOR
        Loan by reason of subsection 2.4(b) or 2.4(c) or as to which the Borrowers
        have
        failed to give notice of conversion or continuation automatically shall be
        converted to a Base Rate Loan on the last day of the Interest Period in effect
        for such Loan.

       

      Each
        request by the Borrowers to convert or continue a Loan shall constitute a
        representation and warranty that no Default shall have occurred and be
        continuing. Accrued interest on a Loan (or portion thereof) being converted
        shall be paid by the Borrowers at the time of conversion. In connection with
        each such conversion or continuation requested by the Borrowers, the Borrowers
        shall deliver to the Agent a Notice of Borrowing or shall make such request
        by
        telephone immediately confirmed in writing, it being understood that the
        Agent
        may rely on the authority of any individual making such telephonic request
        without the necessity of receipt of such written confirmation.

       

      2.5  Nature
        of Banks’ Obligations with Respect to Loans

       

      .
        Each
        Bank shall be obligated to participate in each request for Loans pursuant
        to
        Section 2.2 in accordance with its pro rata share (based on its Commitment
        Percentage) of the applicable Facility. The obligations of each Bank hereunder
        are several (and not joint). The failure of any Bank to perform its obligations
        hereunder shall not affect the obligations of the Borrowers to any other
        party
        nor shall any other party be liable for the failure of any Bank to perform
        its
        obligations hereunder. The Banks shall have no obligation to make Revolving
        Loans or Swing Line Loans hereunder on or after the Revolver Termination
        Date.

       

      2.6  Notes

       

      (a)  The
        Revolving Loans made by each Bank shall be evidenced by a promissory note
        of the
        Borrowers, substantially in the form of Exhibit A-1,
        with
        appropriate insertions as to payee, date and principal amount (each as amended,
        supplemented or otherwise modified from time to time, a “Revolver
        Note”),
        payable to the order of such Bank and in a principal amount equal to the
        amount
        of the initial Revolver Commitment of such Bank. Each Bank is hereby authorized
        to record the date, currency, Type and amount of each Revolving Loan made
        by
        such Bank, each continuation thereof, each conversion of all or a portion
        thereof to another Type, the date and amount of each payment or prepayment
        of
        principal thereof and, in the case of LIBOR Loans, the length of each Interest
        Period with respect thereto, on the schedule 

       

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

      annexed
        to and constituting a part of its Revolver Note, and any such recordation
        shall
        constitute prima facie
        evidence
        of the accuracy of the information so recorded in the absence of manifest
        error,
provided,
        that
        the failure of any Bank to make such recordation (or any error in such
        recordation) shall not affect the obligations of the Borrowers hereunder
        or
        under such Revolver Note. Each Revolver Note shall (a) be dated as of the
        Effective Date, (b) be stated to mature on the Revolver Termination Date
        and (c)
        provide for the payment of interest in accordance with Sections 2.9 and
        2.10.

       

      (b)  The
        Swing
        Line Loans shall be evidenced by the Swing Line Note, payable to the order
        of
        the Swing Line Bank and in a principal amount equal to the amount of the
        Swing
        Line Commitment. The Swing Line Bank is hereby authorized to record the date,
        Type and amount of each Swing Line Loan made by such Bank and the date and
        amount of each payment or prepayment of principal thereof on the schedule
        annexed to and constituting a part of the Swing Line Note, and any such
        recordation shall constitute prima facie
        evidence
        of the accuracy of the information so recorded in the absence of manifest
        error,
provided,
        that
        the failure of the Swing Line Bank to make such recordation (or any error
        in
        such recordation) shall not affect the obligations of the Borrowers hereunder
        or
        under the Swing Line Note. The Swing Line Note shall (a) be dated as of the
        Effective Date, and (b) be stated to mature on the Revolver Termination
        Date.

       

      2.7  Fees

       

      (a)  The
        Borrowers jointly and severally agree to pay to the Agent for the account
        of
        each Bank, on the last Business Day of each March, June, September and December
        during the Revolver Commitment Period and on the date on which the Revolver
        Commitments shall be permanently reduced or terminated as provided herein,
        a
        commitment fee (the “Commitment
        Fee”)
        at a
        rate per annum equal to the applicable Commitment Fee Rate in effect from
        time
        to time on the average daily amount of the difference between (i) the Revolver
        Commitment of such Bank and (ii) the Revolver Exposure of such Bank during
        the
        preceding quarter (or shorter period commencing with the date hereof or ending
        with the Revolver Termination Date or the date on which such or Revolver
        Commitments shall be terminated or reduced). All Commitment Fees shall be
        computed on the basis of the actual number of days elapsed in a year of 360
        days
        and shall be paid in Dollars. The Commitment Fees due to each Bank shall
        commence to accrue on the date hereof, and shall cease to accrue on the Revolver
        Termination Date. The Agent shall distribute the applicable Commitment Fees
        among the Banks pro rata
        in
        accordance with their respective Commitment Percentages.

       

      (b)  The
        Borrowers jointly and severally agree to pay the Agent, for its own account,
        administrative and other fees at the times and in the amounts set forth in
        the
        Commitment Letter.

       

      (c)  The
        foregoing fees shall be paid on the dates due, in immediately available funds,
        to the Agent for distribution, if and as appropriate, among the Banks. Once
        paid, none of the foregoing fees shall be refundable under any
        circumstances.

       

       

      
        
          
          

        

        
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      2.8  Letter
        of Credit Subfacility

       

      (a)  Letter
        of Credit Requests and Availability.
        In lieu
        of the Loans under the Revolver Commitment, the Borrowers may request the
        issuance of a letter of credit (each, a “Letter
        of Credit”
and,
        collectively, the “Letters
        of Credit”)
        by
        delivering to the Issuing Bank a completed Application and agreement for
        letters
        of credit in such form and with such other certificates, documents and
        information as the Issuing Bank may specify from time to time by no later
        than
        10:00 a.m., Philadelphia time, at least five (5) Business Days, or such shorter
        period as may be agreed to by the Issuing Bank, in advance of the proposed
        date
        of issuance. Each Letter of Credit shall be denominated in Dollars. Subject
        to
        the terms and conditions hereof and in reliance on the agreements of the
        other
        applicable Banks set forth in this Section 2.8, the Issuing Bank will issue
        one or more Letters of Credit, provided,
        that
        each Letter of Credit shall (A) have a maximum maturity of twelve (12)
        months from the date of issuance, and (B) in no event expire later than
        five (5) Business Days prior to the Revolver Termination Date, and provided further,
        that in
        no event shall (i) the amount of the Letter of Credit Obligations at any
        one
        time exceed the lesser of (x) $10,000,000, and (y) the aggregate Revolver
        Commitments of all the Banks minus
        the
        aggregate amount of the Revolving Loans and Swing Line Loans then outstanding
        or
        (ii) the sum of the aggregate amount of all Revolving Loans made by a Bank
        plus
        such Bank’s Commitment Percentage of the amount of Letter of Credit Obligations
        and Swing Line Loans then outstanding exceed its Revolver Commitment. The
        Issuing Bank shall not at any time be obligated to issue any Letter of Credit
        hereunder if such issuance would conflict with, or cause the Issuing Bank
        or any
        Letter of Credit Participant to exceed any limits imposed by any applicable
        Requirement of Law. Notwithstanding the provisions of this subsection 2.8,
        the
        Banks and the Borrowers hereby agree that the Issuing Bank may issue upon
        the
        Borrowers’ request, one or more Letter(s) of Credit which by its or their terms
        may be extended for additional periods of up to one year each provided that
        (i)
        the initial expiration date (or any subsequent expiration date) of each such
        Letter of Credit is not later than five (5) Business Days prior to the Revolver
        Termination Date, and (ii) renewal of such Letters of Credit, at the Issuing
        Bank’s discretion, shall be available upon written request from the Borrowers
        to
        the Issuing Bank at least thirty (30) days (or such other time period as
        agreed
        by the Borrowers and the Agent) before the date upon which notice of renewal
        is
        otherwise required.

       

      (b)  Letter
        of Credit Fees.
        The
        Borrowers shall pay in Dollars (i) to the Agent for the ratable account of
        the Banks a fee (the “Letter
        of Credit Fee”)
        computed at the Letter of Credit Fee Rate in effect from time to time and
        (ii) to the Agent for the account of the Issuing Bank a fronting fee equal
        to 0.125% per annum,
        on the
        daily average undrawn face amount of outstanding Letters of Credit (computed
        in
        each case on the basis of the actual number of days such Letters of Credit
        are
        outstanding in a year of 360 days), which amounts shall be payable quarterly
        in
        arrears commencing with the last Business Day of each March, June, September
        and
        December following the issuance of a Letter of Credit and on the Revolver
        Termination Date. The Borrowers shall also pay to the Agent in Dollars for
        the
        sole account of the Issuing Bank, the Issuing Bank’s then in effect customary
        fees and administrative expenses payable with respect to the Letters of Credit
        as the Issuing Bank may generally charge or incur from time to time in
        connection with the issuance, maintenance, modification (if any), assignment
        or
        transfer (if any), negotiation, and administration of Letters of Credit.
        Once
        paid, all of the above fees shall be nonrefundable under all circumstances.
        The
        Agent shall, promptly 

       

       

       

      
        
          
          

        

        
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      following
        its receipt thereof, distribute to the Issuing Bank and the Banks all fees
        and
        commissions received by the Agent for their respective accounts pursuant
        to this
        subsection.

       

      (c)  Letter
        of Credit Participation By Banks.

       

      (i)  The
        Issuing Bank irrevocably grants to each Letter of Credit Participant, and,
        to
        induce the Issuing Bank to issue Letters of Credit hereunder, each Letter
        of
        Credit Participant irrevocably accepts and purchases from the Issuing Bank,
        on
        the terms and conditions hereinafter stated, for such Letter of Credit
        Participant’s own account and risk, an undivided interest equal to such Letter
        of Credit Participant’s Commitment Percentage in the Issuing Bank’s obligations
        and rights under each Letter of Credit issued by the Issuing Bank hereunder
        and
        the amount of each draft paid by the Issuing Bank thereunder. Each Letter
        of
        Credit Participant unconditionally and irrevocably agrees with the Issuing
        Bank
        that, if a draft is paid under any Letter of Credit issued by the Issuing
        Bank
        for which the Issuing Bank is not reimbursed in full by the Borrowers in
        accordance with the terms of this Agreement, such Letter of Credit Participant
        shall pay to the Issuing Bank upon demand at the Issuing Bank’s address for
        notices specified herein an amount equal to such Letter of Credit Participant’s
        Commitment Percentage of the amount of such draft or any part thereof, which
        is
        not so reimbursed. Any action taken or omitted by the Issuing Bank under
        or in
        connection with a Letter of Credit, if taken or omitted in the absence of
        gross
        negligence or willful misconduct, shall not create for the Issuing Bank any
        resulting liability to any Bank.

       

      (ii)  If
        any
        amount required to be paid by any Letter of Credit Participant to the Issuing
        Bank pursuant to subsection 2.8(c)(i) in respect of any unreimbursed portion
        of
        any payment made by the Issuing Bank under any Letter of Credit is not paid
        to
        the Issuing Bank on the date such payment is due from such Letter of Credit
        Participant, such Letter of Credit Participant shall pay to the Issuing Bank
        on
        demand an amount equal to the product of (x) such amount, times (y) the daily
        average Federal Funds Effective Rate, as quoted by the Issuing Bank, during
        the
        period from and including the date such payment is required to the date on
        which
        such payment is immediately available to the Issuing Bank, times (z) a fraction
        the numerator of which is the number of days that elapse during such period
        and
        the denominator of which is 360. A certificate of the Issuing Bank submitted
        to
        any Letter of Credit Participant with respect to any amounts owing under
        this
        subsection shall be conclusive in the absence of manifest error.

       

      (iii)  Whenever,
        at any time after the Issuing Bank has made payment under any Letter of Credit
        and has received from any Letter of Credit Participant its pro rata
        share of
        such payment in accordance with subsection 2.8(c)(i), the Issuing Bank receives
        any payment related to such Letter of Credit (whether directly from the
        Borrowers or otherwise, including by way of set-off or proceeds of collateral
        applied thereto by the Issuing Bank), or any payment of interest on account
        thereof, the Issuing Bank will distribute to such Letter of Credit Participant
        

       

       

      
        
          
          

        

        
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      its
        pro rata
        share
        thereof; provided,
        however,
        that in
        the event that any such payment received by the Issuing Bank shall be required
        to be returned by the Issuing Bank, such Letter of Credit Participant shall
        return to the Issuing Bank the portion thereof previously distributed by
        the
        Issuing Bank to it.

       

      (d)  Borrowers’
        Reimbursement Obligation.

       

      (i)  Each
        Borrower jointly and severally agrees to reimburse the Issuing Bank in respect
        of a Letter of Credit on each date on which a draft presented under such
        Letter
        of Credit is paid by the Issuing Bank for the amount of (i) such draft so
        paid
        and (ii) any taxes, fees, charges or other costs or expenses incurred by
        the Issuing Bank in connection with such payment. Each such payment shall
        be
        made to the Issuing Bank at its Principal Office in Dollars and in immediately
        available funds.

       

      (ii)  Interest
        shall be payable on any and all amounts remaining unpaid by the Borrowers
        under
        this subsection from the date such amounts become payable until payment in
        full
        (A) for the first three days at the per annum rate equal to the Base Rate
        and
        (B) thereafter, at the per annum rate equal to the Base Rate plus 2.0%, and
        shall be payable on demand by the Issuing Bank.

       

      (iii)  Obligations
        Absolute.
        The
        obligations of the Borrowers under this subsection 2.8 shall be joint and
        several. The Borrowers (jointly and severally) and the Banks agree with the
        Issuing Bank that the Issuing Bank shall not be responsible for, and the
        Borrowers’ Reimbursement Obligations under subsection 2.8(d)(i) and the Banks’
obligations under Section 2.8(c) shall be absolute, unconditional and
        irrevocable under all circumstances, and shall not be affected by, among
        other
        things (1) the form of, any lack of power or authority of any signer of or
        the lack of, validity, enforceability, sufficiency, accuracy or genuineness
        of
        any document submitted by any party in connection with any Letter of Credit
        otherwise complying with the terms of the Letter of Credit, or any fraud
        or
        alleged fraud in connection with any Letter of Credit or any obligation
        underlying any Letter of Credit, in each case, even if the Issuing Bank shall
        have been notified thereof except if and to the extent the Issuing Bank is
        directed by a court order not to honor the draw in connection with which
        any
        such document has been submitted, (2) the validity or sufficiency of any
        instrument transferring or assigning or purporting to transfer or assign
        any
        such Letter of Credit (but only to the extent such Letter of Credit is
        transferable) or the rights or benefits thereunder or proceeds thereof, in
        whole
        or in part, which may prove to be invalid or ineffective for any reason,
        (3) any
        claim of the Borrowers against any beneficiary of such Letter of Credit,
        or any
        other party to which such Letter of Credit may be transferred (but only to
        the
        extent such Letter of Credit is transferable) except where such claim is
        the
        result of the failure to comply fully with any conditions required in order
        to
        draw upon such Letter of Credit, (4) any dispute between or among any Borrower
        and any beneficiary of any Letter of Credit or any other party to which such
        Letter of Credit may be transferred, (5) any claims whatsoever of any Borrower
        against any beneficiary of such Letter of Credit or any such transferee,
        (6) any
        error, omission, interruption or delay in transmission, dispatch or delivery
        of
        any message or advice, however transmitted, in connection with any Letter
        of
        Credit, (7) any loss or delay in the transmission or otherwise of any document
        required in order to make a drawing under any such Letter of Credit or of
        the
        proceeds thereof except where such loss or delay is the result of the failure
        to
        comply fully with the terms of the 

       

       

      
        
          
          

        

        
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      Letter
        of
        Credit, (8) errors in interpretation of technical terms, (9) the misapplication
        by the beneficiary of any such Letter of Credit of the proceeds of any drawing
        under such Letter of Credit, (10) any act or omission (including the failure
        to
        honor a presentation complying with the terms of such Letter of Credit as
        a
        result of Governmental Acts or otherwise) by the Issuing Bank in connection
        with
        a Letter of Credit, (11) any consequences arising from causes beyond the
        control of the Issuing Bank, including any Governmental Acts, (12) any set-off,
        counterclaim, recoupment, defense or other right which any Bank may have
        against
        the Issuing Bank, the Borrowers or any other Person for any reason whatsoever,
        (13) the existence of any claim, set-off, defense or other right which the
        Borrowers or any Bank may have at any time against a beneficiary or any
        transferee of any Letter of Credit (or any Persons for whom any such transferee
        may be acting), the Issuing Bank or any Bank or any other Person or, whether
        in
        connection with this Agreement, the transactions contemplated herein or any
        unrelated transaction (including any underlying transaction between the
        Borrowers and the beneficiary for which any Letter of Credit was procured),
        (14)
        any adverse change in the business, operations, properties, assets, condition
        (financial or otherwise) or prospects of the Borrowers, (15) any breach of
        this
        Agreement or any other Loan Document by any of the Borrowers, (16) the
        occurrence or continuance of an insolvency proceeding with respect to the
        Borrowers, (17) the fact that an Event of Default or a Default shall have
        occurred and be continuing and (18) the fact that the Revolver Termination
        Date
        shall have passed or this Agreement or the Revolver Commitments hereunder
        shall
        have been terminated, and none of the above shall affect or impair, or prevent
        the vesting of, any of the Issuing Bank’s rights or powers hereunder, provided,
        in each case, that a court of competent jurisdiction has not finally determined
        that the reliance by the Issuing Bank on any of such documents, instruments
        or
        acts, or any such action by or omission of the Issuing Bank, constituted
        gross
        negligence or willful misconduct of the Issuing Bank.

       

      Without
        limiting the generality of the foregoing, the Issuing Bank (i) may rely on
        any
        oral or other communication believed in good faith by the Issuing Bank to
        have
        been authorized or given by or on behalf of the Borrowers, (ii) may honor
        any
        presentation if the documents presented appear on their face to comply with
        the
        terms and conditions of relevant Letter of Credit, (iii) shall not be liable
        to
        the Borrowers for any consequential, punitive or special damages, or for
        any
        damages resulting from any change in the value of any property relating to
        a
        Letter of Credit, (iv) may honor a previously dishonored presentation under
        a
        Letter of Credit, whether such dishonor was pursuant to a court order, to
        settle
        or compromise any claim of wrongful dishonor, or otherwise, and shall be
        entitled to reimbursement to the same extent as if such presentation had
        initially been honored, together with any interest paid by the Issuing Bank,
        (v)
        may honor any drawing that is payable upon presentation of a statement from
        an
        advising bank advising negotiation or payment, upon receipt of such statement
        (even if such statement indicates that a draft or other document is being
        separately delivered), and shall not be liable for any failure of any such
        draft
        or other document to arrive, or to conform in any way with the relevant Letter
        of Credit, and (vi) may pay any paying or negotiating bank claiming that
        it
        rightfully honored under the laws or practices of the place where such bank
        is
        located.

       

      (e)  Law
        Governing Letters of Credit.
        (i)
        If any
        draft shall be presented for payment to the Issuing Bank under any Letter
        of
        Credit, the Issuing Bank shall promptly notify the Company of the date and
        amount thereof. The responsibility of the Issuing 

       

       

      
        
          
          

        

        
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      Bank
        to
        the Borrowers in connection with any draft presented for payment under any
        Letter of Credit shall, in addition to any payment obligation expressly provided
        for in such Letter of Credit and any other obligation expressly imposed by
        the
        provisions of the Uniform Customs and Practice for Documentary Credits, 1993
        Revision, International Chamber of Commerce Publication No. 500 (“Publication
        500”)
        or
        such other law as the Borrowers and the Issuing Bank agree shall apply, be
        limited to determining that the documents (including each draft) delivered
        under
        such Letter of Credit in connection with such presentment are in conformity
        with
        such Letter of Credit.

       

      (ii)  Each
        Borrower agrees jointly and severally to be bound by the terms of each
        Application and the Issuing Bank’s written regulations and customary practices
        relating to letters of credit, though such interpretation may be different
        from
        such Borrower’s own. It is understood and agreed that, except in the case of
        gross negligence or willful misconduct, the Issuing Bank and the Agent shall
        not
        be liable for any error, negligence and/or mistakes, whether of omission
        or
        commission, in following the Borrowers’ instructions or those contained in the
        Letters of Credit or any modifications, amendments or supplements thereto.
        To
        the extent not otherwise inconsistent with this Agreement, the provisions
        of
        Publication 500 (or any other law as the Borrowers and the Issuing Bank agree
        shall apply) are hereby made a part of this Agreement with respect to the
        obligations in connection with each Letter of Credit.

       

      (f)  Indemnification
        of Issuing Bank and Banks.
        (i)
        In
        addition to amounts payable as provided in Section 9.5, the Borrowers
        hereby agree to protect, indemnify, pay and save harmless the Issuing Bank
        and
        the Banks and each of their respective officers, directors, shareholders
        and
        employees harmless from and against any and all claims, liabilities, losses,
        damages, taxes, penalties, interest, judgments, costs and expenses (including
        reasonable legal fees and costs, whether of internal or external counsel),
        which
        may be incurred by or awarded against any of them, and which arise out of
        or in
        connection with (a) any Letter of Credit, this Section 2.8, or the
        preparation for a defense of any investigation, litigation, or proceeding
        arising out of or in connection herewith or therewith (and irrespective of
        who
        may be the prevailing party); (b) any payment or action taken in connection
        with
        any Letter of Credit, including, without limitation, any action or proceeding
        seeking to restrain any drawing under a Letter of Credit or to compel or
        restrain any payment or any other action under a Letter of Credit or this
        Agreement (and irrespective of who may be the prevailing party); (c) the
        enforcement of this Section 2.8 or the collection or sale of any property
        or
        collateral; and (d) any Governmental Act or other cause beyond the Issuing
        Bank’s reasonable control; except, in each case, to the extent such claim,
        liability, loss, damage, tax, penalty, interest, judgment, cost or expense
        is
        found by a final judgment of a court of competent jurisdiction to have resulted
        from the Issuing Bank’s gross negligence or willful misconduct.

       

      (ii)  Each
        Bank
        shall ratably in accordance with its Commitment Percentage, indemnify the
        Issuing Bank, its affiliates and their respective directors, officers, agents
        and employees (to the extent not reimbursed by the Borrowers) against any
        cost,
        expense (including reasonable counsel fees and expenses), claim, demand,
        action,
        loss or liability (except any of the foregoing that results from the
        indemnitees’ gross negligence or willful misconduct) that such indemnities may
        suffer or incur in connection with this Section 2.8 or any action taken or
        omitted by such indemnities hereunder.

       

       

      
        
          
          

        

        
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      In
        furtherance and extension and not in limitation of the specific provisions
        set
        forth above, any action taken or omitted by the Issuing Bank under or in
        connection with the Letters of Credit issued by it or any documents and
        certificates delivered thereunder, if taken or omitted in good faith, shall
        not
        create any liability of the Issuing Bank to the Borrowers or any
        Bank.

       

      2.9  Interest
        Rates and Payment Dates

       

      .
        The
        Borrowers shall pay interest in respect of the outstanding unpaid principal
        amount of the Revolving Loans as selected by it from the Base Rate or LIBOR
        Rate
        set forth below applicable thereto, it being understood that, subject to
        the
        provisions of this Agreement, the Borrowers may select different interest
        rates
        and different Interest Periods to apply simultaneously to Revolving Loans
        comprising different Tranches and may convert to or renew one or more applicable
        interest rates with respect to all or any portion of Revolving Loans comprising
        any Tranche, provided, that there shall not be at any one time outstanding
        more
        than ten (10) Tranches in the aggregate (including one Base Rate Tranche
        and one
        Swing Line Loan Tranche). If at any time the designated rate applicable to
        any
        Loan made by any Bank exceeds such Bank’s highest lawful rate, the rate of
        interest on such Bank’s Loan shall be limited to such Bank’s highest lawful
        rate.

       

      (a)  Subject
        to the provisions of Section 2.10, each Base Rate Loan shall bear interest
        (computed on the basis of the actual number of days elapsed over a year of
        365
        or 366 days, as the case may be) at a rate per annum equal to the Base Rate
        plus
        the Applicable Margin for Base Rate Loans. 

       

      (b)  Subject
        to the provisions of Section 2.10, (i)
        each
        LIBOR Loan shall bear interest at a rate per annum (computed on the basis
        of the
        actual number of days elapsed over a year of 360 days) equal to the LIBOR
        Rate
        for the Interest Period in effect for such LIBOR Loan plus the Applicable
        Margin
        and (ii)
        each
        Swing Line Loan shall bear interest at the rate provided in Section 2.3;
provided,
        however,
        if the
        Swing Line Loan bears interest at the Daily LIBOR Rate, interest shall be
        computed in accordance with clause (i) of this Section 2.9(b).

       

      (c)  Interest
        on each Revolving Loan shall be payable in arrears on each Interest Payment
        Date
        applicable to such Loan; provided,
        that
        (i) interest accruing on overdue amounts pursuant to Section 2.10 shall be
        payable on demand as provided in such Section and (ii) accrued and unpaid
        interest on such Loans shall be payable on the Revolver Termination Date.
        Interest on each Swing Line Loan shall be payable on the day such Swing Line
        Loan becomes due, including the Revolver Termination Date.

       

      (d)  As
        soon
        as practicable the Agent shall notify the Borrowers and the Banks of (i)
        each
        determination of a LIBOR Rate or Daily LIBOR Rate and (ii) the effective
        date
        and the amount of each change in the interest rate on a LIBOR Loan, Daily
        LIBOR
        Loan or Base Rate Loan. Each determination of an interest rate by the Agent,
        pursuant to any provision of this Agreement (including this Section 2.9 and
        Section 2.10) shall be conclusive and binding on the Borrowers and the Banks
        in
        the absence of clearly demonstrable error. At the request of the Borrowers,
        the
        Agent shall deliver to the Borrowers a statement showing the quotations used
        by
        it in determining any interest rate pursuant to subsections 2.9(a) and
        (b).

       

       

      
        
          
          

        

        
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      2.10  Default
        Interest

       

      .
        Upon
        the occurrence of and during the continuance of an Event of Default under
        subsection 7.1(a) or (f), the outstanding principal amount of the Loans and,
        to
        the extent permitted by law, accrued and unpaid interest thereon and any
        other
        amount payable hereunder, shall bear interest from the date of such occurrence
        at a rate per annum which is equal to two percent (2%) in excess of the Base
        Rate (after as well as before judgment). Upon the occurrence of and during
        the
        continuance of an Event of Default other than under subsection 7.1(a) or
        (f),
        the outstanding principal amount of the Loans and, to the extent permitted
        by
        law, accrued and unpaid interest thereon and any other amounts payable
        hereunder, shall bear interest from the date that the Agent (at its discretion
        if not otherwise directed by the Required Banks or at the direction of the
        Required Banks) shall send notice to the Company of the application of the
        default rate at a rate per annum which is equal to two percent (2%) in excess
        of
        the Base Rate (after as well as before judgment).

       

      2.11  Pro
        Rata Treatment of Loans and Payments; Commitment Fees

       

      (a)  Except
        as
        required under Section 2.13 or as otherwise provided for Swing Line Loans,
        each
        borrowing by the Borrowers hereunder, each payment or prepayment of principal
        of
        the Loans, each payment of interest on such Loans, each payment of Commitment
        Fees and Letter of Credit Fees, and each reduction of the Revolver Commitments,
        shall be made pro rata
        among
        the Banks in accordance with their respective Commitment
        Percentages.

       

      (b)  Except
        as
        provided in subsection 2.3, each borrowing of a Swing Line Loan, each payment
        or
        prepayment of principal of a Swing Line Loan, each payment of interest on
        the
        Swing Line Loans and each reduction of the Swing Line Commitment shall be
        for
        the sole account of the Swing Line Bank.

       

      (c)  Each
        Bank
        agrees that in computing such Bank’s portion of any borrowing to be made
        hereunder, the Agent may, in its discretion, round each Bank’s percentage of
        such borrowing to the next higher or lower whole Dollar amount.

       

      2.12  Payments

       

      (a)  The
        Borrowers shall make each payment (including principal of or interest on
        any
        borrowing or any fees or other amounts) hereunder not later than
        11:00 a.m., Philadelphia time, on the date when due to the Agent at its
        offices set forth in Section 9.2 for the ratable accounts of the Banks in
        Dollars in immediately available funds. Such payments shall be made without
        set-off or counterclaim of any kind. The Agent shall distribute to the Banks,
        as
        applicable, any payments received by the Agent promptly upon receipt in
        immediately available funds. The Agent’s and each Bank’s statement of account,
        ledger or other relevant record shall, in the absence of manifest error,
        be
        conclusive as the statement of the amount of principal of and interest on
        the
        Loans and other amounts owing under this Agreement.

       

      (b)  Whenever
        any payment (including principal of or interest on any borrowing or any fees
        or
        other amounts) hereunder (other than payments on LIBOR Loans) shall become
        due,
        or otherwise would occur, on a day that is not a Business Day, such payment
        may
        be made on the next succeeding Business Day, and such extension of time shall
        in
        such case be included in the computation of interest or fees, if applicable.
        Whenever any payment (including 

       

       

      
        
          
          

        

        
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      principal
        of or interest on any borrowing or any fees or other amounts) hereunder on
        a
        LIBOR Loan shall become due, or otherwise would occur, on a day that is not
        a
        Business Day, such payment may be made on the next succeeding Business Day
        unless the result of such extension would be to extend such payment into
        another
        calendar month, in which event such payment shall be made on the immediately
        preceding Business Day.

       

      2.13  LIBOR
        Rate Unascertainable; Illegality; Increased Costs; Deposits Not
        Available

       

      (a)  The
        Agent
        shall have the rights specified in subsection 2.13(c) if on any date on which
        a
        LIBOR Rate or a Daily LIBOR Rate would otherwise be determined, the Agent
        shall
        have determined (which determination shall upon notice thereof to the Borrowers
        be conclusive and binding on the Borrowers) that:

       

      (i)  adequate
        and reasonable means do not exist for ascertaining such LIBOR Rate or Daily
        LIBOR Rate, or

       

      (ii)  a
        contingency has occurred which materially and adversely affects the secondary
        market for negotiable certificates of deposit maintained by dealers of
        recognized standing relating to the London interbank LIBOR market relating
        to
        the LIBOR Rate or the Daily LIBOR Rate.

       

      (b)  The
        Agent
        shall have the rights specified in subsection 2.13(c) if at any time any
        Bank
        shall have determined (which determination shall upon notice thereof to the
        Agent and the Borrowers be conclusive and binding on the Borrowers)
        that:

       

      (i)  the
        making, maintenance or funding of any Loan to which a LIBOR Rate or a Daily
        LIBOR Rate applies has been made impracticable or unlawful by compliance
        by such
        Bank in good faith with any Law or any interpretation or application thereof
        by
        any Governmental Authority or with any request or directive of any such
        Governmental Authority (whether or not having the force of Law), or

       

      (ii)  such
        LIBOR Rate or Daily LIBOR Rate will not adequately and fairly reflect the
        cost
        to such Bank of the establishment or maintenance of any such Loan,
        or

       

      (iii)  after
        making all reasonable efforts, deposits of the relevant amount for the relevant
        Interest Period for a Loan to which a LIBOR Rate or a Daily LIBOR Rate applies
        are not available to such Bank in the London interbank market.

       

      (c)  In
        the
        case of any event specified in subsection 2.13(a) above, the Agent shall
        promptly so notify the Banks and the Borrowers thereof, and in the case of
        an
        event specified in subsection 2.13(b) above, such Bank shall promptly so
        notify
        the Agent and endorse a certificate to such notice as to the specific
        circumstances of such notice, and the Agent shall promptly send copies of
        such
        notice and certificate to the other Banks and the Borrowers. Upon such date
        as
        shall be specified in such notice (which shall not be earlier than the date
        such
        notice is given), the obligation of (A) the Banks, in the case of such
        notice given by the Agent, or (B) such Bank, in the case of such notice
        given by such Bank, to allow the Borrowers to select a 

       

       

      
        
          
          

        

        
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      Daily
        LIBOR Rate, in the case of Swing Line Loans, or select, convert to or renew
        a
        LIBOR Rate shall be suspended until the Agent shall have later notified the
        Borrowers, or such Bank shall have later notified the Agent, of the Agent’s or
        such Bank’s, as the case may be, determination that the circumstances giving
        rise to such previous determination no longer exist. If at any time the Agent
        makes a determination under subsection 2.13(a) and the Borrowers have previously
        notified the Agent of their selection of a Daily LIBOR Rate Loan, in the
        case of
        Swing Line Loans, or their selection, conversion to or renewal of a LIBOR
        Rate
        and such interest rate has not yet gone into effect, such notification shall
        be
        deemed to provide for selection of, conversion to or renewal of a Base Rate
        Loan
        to the extent permitted hereunder. If any Bank notifies the Agent of a
        determination under subsection 2.13(b), the Borrowers shall, subject to the
        Borrowers’ indemnification obligations under subsection 2.18 as to any Loan of
        the Bank to which a LIBOR Rate or a Daily LIBOR Rate applies, on the date
        specified in such notice either (i) as applicable, convert such Loan to the
        Base Rate, or (ii) prepay such Loan in accordance with Section 2.15.
        Absent due notice from the Borrowers of conversion or prepayment, such Loan
        shall automatically be converted to the Base Rate upon such specified
        date.

       

      2.14  Termination,
        Reduction and Increase of Commitments

       

      (a)  The
        Revolver Commitments and the Swing Line Commitment shall be automatically
        terminated on the Revolver Termination Date whereupon all Revolving Loans
        and
        Swing Line Loans and accrued interest thereon shall become due and payable
        in
        full.

       

      (b)  Upon
        at
        least five Business Days’ prior irrevocable written (including facsimile) notice
        to the Agent, the Borrowers may at any time in whole permanently terminate,
        or
        from time to time in part permanently reduce, the Revolver Commitments;
provided,
        however,
        that
        each partial reduction of the Revolver Commitments shall be in a minimum
        principal amount $3,000,000 or in a whole multiple thereof, and (iii) the
        Revolver Commitments may not be reduced or terminated if, after giving effect
        thereto and to any prepayments of the Loans made on the effective date thereof
        the Revolver Exposure at such time would exceed the aggregate amount of Revolver
        Commitments at such time.

       

      (c)  Each
        reduction in the Revolver Commitments hereunder shall be made ratably among
        the
        Banks in accordance with their respective Commitment Percentages. The Borrowers
        shall pay to the Agent for the account of the Banks on the date of each
        termination or reduction of the Revolver Commitments, the Commitment Fees
        on the
        amount of such Revolver Commitments so terminated or reduced accrued to the
        date
        of such termination or reduction.

       

      (d)  (i)The
        Borrowers may at any time and from time to time, subject to the last sentence
        hereof, request an increase in the Revolver Commitments by sending a written
        notice thereof to all of the Banks and the Agent. Such notice shall specify
        the
        total amount of the increase requested by the Borrowers (the “Requested
        Increase”);
        provided that,
        (i) the
        Requested Increase shall be in an amount equal to at least $5,000,000 and
        (ii)
        the maximum aggregate increase of the Revolver Commitments shall be $10,000,000.
        Upon receipt of such notice from the Borrower, the Agent shall promptly give
        notice thereof to the Banks. Each Bank shall respond in writing to the Borrowers
        (with a copy simultaneously sent to the Agent), within 

       

       

      
        
          
          

        

        
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      thirty
        (30) days of receipt of a Requested Increase (or such shorter period as the
        Agent and the Borrowers shall agree), stating the maximum amount, if any,
        by
        which such Bank is willing to increase its Revolver Commitment (the
“Offered
        Amount”).
        If
        the total of the Offered Amounts for all of the Banks is greater than the
        Requested Increase, the Requested Increase shall be allocated amongst the
        offering Banks as determined by the Agent or, pro rata
        based on
        each Bank’s Commitment Percentage as in effect prior to any such increase. If
        the total of the Offered Amount for all of the Banks is equal to or less
        than
        the Requested Increase (x) each Bank’s Revolver Commitment shall increase by its
        Offered Amount and (y) the Borrowers may, subject to the consent of the Agent,
        offer the difference, if any, to one or more new banks or other financial
        institutions (each a “Proposed
        New Bank”).
        If
        the Borrowers request that a Proposed New Bank join this Agreement and provide
        a
        Revolver Commitment hereunder, the Borrowers shall at least five (5) days
        prior
        to the date (or such other period as the Agent and the Borrowers shall agree)
        on
        which such Proposed New Bank proposes to join this Agreement notify the Agent
        of
        the name of the Proposed New Bank and the amount of its proposed Revolver
        Commitment. Upon the consent of the Agent to a Proposed New Bank joining
        this
        Agreement (which consent shall not be unreasonably withheld or delayed),
        such
        Proposed New Bank shall join this Agreement pursuant to the provisions of
        subsection 9.6(j), including that its minimum Revolver Commitment be at least
        $5,000,000 or such lesser amount as the Agent shall agree.

       

      (ii)  Any
        Bank
        that increases its Revolver Commitment shall execute and deliver an Increased
        Commitment and Acceptance prior to the effective date of such increase. Any
        Proposed New Bank shall execute and deliver a duly completed New Bank Joinder
        to
        the Agent at least five (5) days prior to the effective date of such Proposed
        New Bank’s joinder hereto. Simultaneously with the execution and delivery of a
        New Bank Joinder or an Increased Commitment and Acceptance, the Borrower
        shall
        deliver a new Revolver Note for the applicable Bank.

       

      (iii)  Following
        any increase in the Revolver Commitments pursuant to this subsection 2.14(d),
        the Agent shall send to the Banks and the Borrowers a revised Schedule I
        setting forth each Bank’s new Commitment. Such Schedule shall replace the
        existing Schedule I if no Bank objects thereto within ten (10) days of its
        receipt thereof.

       

      (iv)  Notwithstanding
        anything to the contrary in this subsection 2.14(d), (x) the Borrowers may
        not
        request an increase in the Revolver Commitments if at the time of such request
        a
        Default or Event of Default shall exist and (y) no increase in the Revolver
        Commitments (including by way of the addition of a Proposed New Bank) shall
        become effective if on the date that such increase would become effective,
        a
        Default or Event of Default shall then exist or occur as a result
        thereof.

       

      2.15  Prepayment
        of Loans

       

      (a)  The
        Borrowers shall have the right at any time and from time to time to prepay
        Loans, in whole or in part, without premium or penalty (but in any event
        subject
        to subsection 2.18), upon prior written, telecopy or telephonic notice to
        the
        Agent given, in the case of Base Rate Loans, no later than 11:00 am.,
        Philadelphia time, one Business Day before any proposed prepayment, and in
        the
        case of LIBOR Loans, no later than 11:00 a.m., Philadelphia time, three Business
        Days before any such proposed prepayment. In each case the 

       

       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

       

      notice
        shall specify the date, amount of each such prepayment, whether the prepayment
        is of LIBOR Loans or Base Rate Loans, or a combination thereof, and, if a
        combination thereof, the amount allocable to each; provided,
        however,
        that
        each such partial prepayment shall be in the principal amount of at least
        (i) with respect to prepayments of Base Rate Loans, $1,000,000 or in whole
        multiples of $100,000 in excess thereof, and (ii) with respect to
        prepayments of Loans that bear interest at the LIBOR Rate, $1,000,000 or
        in
        whole multiples of $500,000 in excess thereof.

       

      (b)  On
        the
        date of any termination or reduction of the Revolver Commitments pursuant
        to
        Section 2.14, the Borrowers shall pay or prepay so much of the Loans as shall
        be
        necessary in order that the aggregate Revolver Exposure at such time would
        not
        exceed the aggregate amount of the Revolver Commitments at such
        time.

       

      (c)  All
        prepayment notices shall be irrevocable. The principal amount of the Loans
        for
        which a prepayment notice is given, together with interest on such principal
        amount except with respect to Base Rate Loans and all fees, costs and expenses
        payable in connection therewith, shall be due and payable on the date specified
        in such prepayment notice as the date on which the proposed prepayment is
        to be
        made. If the Borrowers prepay a Revolver Loan, all outstanding Swing Line
        Loans
        shall (unless the Swing Line Bank shall otherwise agree) first be repaid
        from
        the proceeds thereof. If the Borrowers fail to specify the applicable Tranche
        which the Borrowers are prepaying, the prepayment shall, subject to the
        immediately prior sentence, be applied first to Base Rate Loans and then
        to
        LIBOR Loans, with payments applied to LIBOR Loans being applied in order
        of next
        maturing Interest Periods. Any prepayment hereunder shall be subject to the
        Borrowers’ obligation to indemnify the Banks under
        Section 2.18.

       

      (d)  Upon
        receipt of any notice of prepayment, the Agent shall promptly notify each
        Bank
        thereof.

       

      (e)  Amounts
        prepaid pursuant to this Section (other than subsection (b) hereof) may be
        reborrowed, subject to the terms and conditions hereof.

       

      2.16  Requirements
        of Law

       

      (a)  In
        the
        event that any change in any Requirement of Law or in the interpretation,
        or
        application thereof or compliance by any Bank with any request or directive
        (whether or not having the force of law) from any central bank or other
        Governmental Authority made subsequent to the date hereof:

       

      (i)  shall
        subject any Bank to any tax of any kind whatsoever with respect to this
        Agreement, any Note, any Letter of Credit, any Application or any LIBOR Loan
        made by it or payments by the Borrowers of principal, interest, fees or other
        amounts due from the Borrowers hereunder, or change the basis of taxation
        of
        payments to such Bank in respect thereof (except for taxes covered by Section
        2.17 and changes in the rate of tax on the net income of such
        Bank);

       

      (ii)  shall
        impose, modify or hold applicable any reserve, special deposit, compulsory
        loan
        or similar requirement against assets held by, deposits or other liabilities
        in
        or for the account of, advances, loans, letters of credit or other extensions
        of

       

       

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

       

      credit
        by, or any other acquisition of funds by, any Bank or any Lending Office
        of any
        Bank which is not otherwise included in the determination of the interest
        rate
        on such LIBOR Loan hereunder; or

       

      (iii)  shall
        impose on any Bank or any Lending Office of any Bank any other
        condition;

       

      and
        the
        result of any of the foregoing is to increase the cost to such Bank or its
        Lending Office, by an amount which such Bank deems in its sole but reasonable
        discretion to be material, of making, converting into, continuing or maintaining
        LIBOR Loans, maintaining any commitment hereunder or issuing or participating
        in
        Letters of Credit or to reduce any amount receivable hereunder in respect
        thereof then, in any such case, the Borrowers shall as promptly as practicable
        pay such Bank, upon its demand, any additional amounts necessary to compensate
        such Bank for such increased cost or reduced amount receivable. If any Bank
        becomes entitled to claim any additional amounts pursuant to this subsection,
        it
        shall as promptly as practicable notify the Company, through the Agent, of
        the
        event by reason of which it has become so entitled. A certificate as to any
        additional amounts payable pursuant to this subsection submitted by such
        Bank,
        through the Agent, to the Company shall be conclusive in the absence of clearly
        demonstrable error. This covenant shall survive the termination of this
        Agreement and the payment of the Notes and all other amounts payable
        hereunder.

       

      (b)  In
        the
        event that any Bank shall have determined that any change in any Requirement
        of
        Law regarding capital adequacy or in the interpretation or application thereof
        or compliance by such Bank or any corporation controlling such Bank with
        any
        request or directive regarding capital adequacy (whether or not having the
        force
        of law) from any Governmental Authority made subsequent to the date hereof
        does
        or shall have the effect of reducing the rate of return on such Bank’s or such
        corporation’s capital as a consequence of its obligations hereunder or under any
        Letter of Credit to a level below that which such Bank or such corporation
        could
        have achieved but for such change or compliance (taking into consideration
        such
        Bank’s or such corporation’s policies with respect to capital adequacy) by an
        amount deemed by such Bank to be material, then from time to time, the Borrowers
        shall as promptly as practicable pay such Bank, upon its demand, such additional
        amount or amounts as will compensate such Bank for such reduction. If any
        Bank
        becomes entitled to claim any additional amounts pursuant to this subsection,
        it
        shall as promptly as practicable notify the Company, through the Agent, of
        the
        event by reason of which it has become so entitled. A certificate as to any
        additional amounts payable pursuant to this subsection submitted by such
        Bank,
        through the Agent, to the Company shall be conclusive in the absence of clearly
        demonstrable error. This covenant shall survive the termination of this
        Agreement and the payment of the Notes and all other amounts payable
        hereunder.

       

      (c)  Each
        Bank
        agrees that it will use reasonable efforts in order to avoid or to minimize,
        as
        the case may be, the payment by the Borrowers of any additional amount under
        subsections 2.16(a) or (b); provided,
        however,
        that no
        Bank shall be obligated to incur any expense, cost or other amount in connection
        with utilizing such reasonable efforts.

       

       

       

      
        
          
          

        

        
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      2.17  Taxes

       

      (i)  All
        payments made by the Borrowers under this Agreement and the Notes shall be
        made
        free and clear of, and without deduction or withholding for or on account
        of,
        any present or future income, stamp or other taxes, levies, imposts, duties,
        charges, fees, deductions or withholdings, now or hereafter imposed, levied,
        collected, withheld or assessed by any Governmental Authority (excluding,
        in the
        case of the Agent and each Bank, net income taxes and franchise or gross
        receipts taxes imposed on the Agent or such Bank, as the case may be, as
        a
        result of a present or former connection between the jurisdiction of the
        government or taxing authority imposing such tax and the Agent or such Bank
        (excluding a connection arising solely from the Agent or such Bank having
        executed, delivered or performed its obligations or received a payment under,
        or
        enforced, this Agreement or the Notes)) (all such non-excluded taxes, levies,
        imposts, duties, charges, fees, deductions and withholdings being hereinafter
        called “Taxes”).
        If
        any Taxes are required to be withheld from any amounts payable to the Agent
        or
        any Bank hereunder or under the Notes, the amounts so payable to the Agent
        or
        such Bank shall be increased to the extent necessary to yield to the Agent
        or
        such Bank (after payment of all Taxes) interest or any such other amounts
        payable hereunder at the rates or in the amounts specified in this Agreement
        and
        the Notes. Whenever any Taxes are payable by the Borrowers, as promptly as
        possible thereafter, the Borrowers shall send to the Agent for its own account
        or for the account of such Bank, as the case may be, a certified copy of
        an
        original official receipt received by the Borrowers showing payment thereof.
        If
        the Borrowers fail to pay any Taxes when due to the appropriate taxing authority
        or fail to remit to the Agent the required receipts or other required
        documentary evidence, the Borrowers shall indemnify (subject to subsections
        2.17(c) below) the Agent and the Banks for any incremental taxes, interest
        or
        penalties that may become payable by the Agent or any Bank as a result of
        any
        such failure. The agreements in this subsection shall survive the termination
        of
        this Agreement and the payment of the Notes and all other amounts payable
        hereunder.

       

      (ii)  Each
        Bank
        that is not incorporated under the laws of the United States of America or
        a
        state thereof agrees that it will deliver to the Borrowers and the Agent
        on or
        prior to the Effective Date in the case of each initial Bank and on or prior
        to
        the effective date of the Assignment and Acceptance pursuant to which it
        becomes
        a Bank in the case of each other Bank (i) two duly completed copies of United
        States Internal Revenue Service Form W-8ECI or W-8BEN or successor applicable
        form, as the case may be, and (ii) an Internal Revenue Service Form W-8 or
        W-9
        or successor applicable form. Each such Bank also agrees to deliver to the
        Borrowers and the Agent two further copies of the said Form W-8ECI or W-BEN
        and
        Form W-8 or W-9, or successor applicable forms or other manner of certification,
        as the case may be, on or before the date that any such form expires or becomes
        obsolete or after the occurrence of any event requiring a change in the most
        recent form previously delivered by it to the Borrowers, and such extensions
        or
        renewals thereof as may reasonably be requested by the Borrowers or the Agent,
        unless in any such case an event (including, without limitation, any change
        in
        treaty, law or regulation) has occurred prior to the date on which any such
        delivery would otherwise be required which renders all such forms inapplicable
        or which would prevent such Bank from duly completing and delivering any
        such
        form with respect to it and such Bank so advises the Borrower and the Agent.
        Each such Bank shall certify (i) in the case of a Form W-8ECI or W-BEN, that
        it
        is entitled to receive payments under this Agreement without deduction or
        withholding of any United States federal income taxes and (ii) in the case
        of a
        Form 

       

       

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

       

      W-8
        or
        W-9 or successor applicable form, that it is entitled to an exemption from
        United States backup withholding tax. If any form provided by a Bank at the
        time
        such Bank first becomes a party to this Agreement indicates a United States
        interest withholding tax rate in excess of zero, withholding tax at such
        rate
        shall be considered excluded from “Taxes” as defined in subsection 2.9(a). In
        the event that any Bank receives a refund of any Taxes for which it has received
        payment from the Borrowers under this Section 2.17, such Bank shall promptly
        pay
        the amount of such refund to the Borrowers without interest.

       

      (iii)  Notwithstanding
        the foregoing subsections of this Section 2.17, the Borrowers shall not be
        required to pay any additional amounts to any Bank in respect of United States
        withholding tax pursuant to such subsections if (i) the obligation to pay
        such
        additional amounts would not have arisen but for a failure by such Bank to
        comply with the requirements of subsection 2.17(b) or (ii) such Bank shall
        not have furnished the Borrowers with such forms listed in subsection 2.17(b)
        and shall not have taken such other steps as reasonably may be available
        to it
        under applicable tax laws and any applicable tax treaty or convention to
        obtain
        an exemption from, or reduction (to the lowest applicable rate) of, such
        United
        States withholding tax.

       

      2.18  Indemnity

       

      (a)  The
        Borrowers jointly and severally agree to indemnify each Bank and to hold
        each
        Bank harmless from any loss or expense, including, without limitation,
        reasonable attorneys’ fees and expenses which such Bank may sustain or incur as
        a consequence of (i) default
        by the Borrowers in payment when due of the principal amount of or interest
        on
        any LIBOR Loan or Swing Line Loan, (ii) default
        by the Borrowers in making a borrowing of, conversion into or continuation
        of
        LIBOR Loans or Swing Line Loans after the Borrowers have given a notice
        requesting the same in accordance with the provisions of this Agreement,
        (iii)
        default
        by the Borrowers in making any prepayment after the Borrowers have given
        a
        notice thereof in accordance with the provisions of this Agreement or
(iv) the
        making of a prepayment (whether voluntary, mandatory, as a result of
        acceleration or otherwise) of LIBOR Loans or Swing Line Loans on a day which
        is
        not the last day of an Interest Period with respect thereto (or, in the case
        of
        a Swing Line Loan on the date such Swing Line Loan is due), including, without
        limitation, in each case, any such loss or expense arising from the reemployment
        of funds obtained by it or from fees payable to terminate the deposits from
        which such funds were obtained. A certificate as to any amounts that a Bank
        is
        entitled to receive under this Section 2.18 submitted by such Bank, through
        the
        Agent, to the Company shall be conclusive in the absence of clearly demonstrable
        error and all such amounts shall be paid by the Borrowers promptly upon demand
        by such Bank. This covenant shall survive the termination of this Agreement
        and
        the payment of the Notes and all other amounts payable hereunder.

       

      (b)  For
        the
        purpose of calculation of all amounts payable to a Bank under this subsection,
        each Bank shall be deemed to have actually funded its relevant LIBOR Loan
        or
        Swing Line Loan through the purchase of a deposit bearing interest at the
        LIBOR
        Rate in an amount equal to the amount of that LIBOR Loan or Swing Line Loan,
        as
        the case may be, and having a maturity comparable to the relevant Interest
        Period or applicable period for such Swing Line Loan; provided,
        however,
        that
        each Bank may fund each of its LIBOR Loans, and the Swing Line Bank may fund
        its
        Swing Line Loans, in any manner it sees fit, and the foregoing 

       

       

      
        
          
          

        

        
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      assumptions
        shall be utilized only for the calculation of amounts payable under this
        subsection. This covenant shall survive the termination of this Agreement
        and
        the payment of the Loans and all other amounts payable hereunder.

       

      2.19  Intentionally
        Omitted

       

      2.20  Borrowers’
        Representative

       

      .
        Each of
        the Borrowers hereby appoints the Company as its non-exclusive representative,
        and grants to the Company an irrevocable power of attorney to act as its
        attorney-in-fact, with regard to all matters relating to this Agreement and
        each
        of the other Loan Documents, including, without limitation, execution and
        delivery of any Notice of Borrowing, and amendments, supplements, waivers
        or
        other modifications hereto or thereto, receipt of any notices hereunder or
        thereunder and receipt of service of process in connection herewith or therewith
        and making all elections as to interest rates and interest payment dates.
        (In
        such capacity, the Company is herein referred to as the “Borrowers’
Representative.”) The Agent and the Banks shall be entitled to rely exclusively
        on the Borrowers’ Representative’s authority so to act in each instance without
        inquiry or investigation, and each of the Borrowers hereby agrees to indemnify
        and hold harmless the Agent and the Banks for any losses, costs, delays,
        errors,
        claims, penalties or charges arising from or out of the Borrowers’
Representative’s actions pursuant to this Section 2.20 and the Agent’s and the
        Banks’ reliance thereon and hereon. Notice from the Borrowers’ Representative
        shall be deemed to be notice from all of the Borrowers and notice to the
        Borrowers’ Representative shall be deemed to be notice to all of the Borrowers.
        Nothing in this Section 2.20 shall vitiate or be held contrary to the Borrowers’
representations and covenants regarding the Loans or the net worth or solvency
        of the Borrowers made herein or in any of the Loan Documents.

       

       

      SECTION
        3.   REPRESENTATIONS
        AND WARRANTIES

       

      To
        induce
        the Agent and the Banks to enter into this Agreement and to make the Loans
        and
        issue or participate in the Letters of Credit, each of the Borrowers hereby
        represents and warrants to the Agent and each Bank that:

       

      3.1  Financial
        Condition

       

      (a)  The
        consolidated balance sheet of the Company and its consolidated Subsidiaries
        as
        at December 25, 2004 and the related consolidated statements of income and
        of
        cash flows for the period ended on such date, copies of which have heretofore
        been furnished to each Bank, present fairly the consolidated financial condition
        of the Company and its consolidated Subsidiaries as at such date, and the
        consolidated results of their operations and their consolidated cash flows
        for
        the period then ended. All such financial statements, including the related
        schedules and notes thereto, have been prepared in accordance with GAAP applied
        consistently throughout the periods involved. Neither the Company nor any
        of its
        consolidated Subsidiaries had, at the date of the most recent balance sheet
        referred to above, any material Guaranty Obligation, liability for taxes,
        or any
        long-term lease or unusual forward or long-term commitment, including, without
        limitation, any interest rate or foreign currency swap or exchange transaction,
        which is required by GAAP to be but is not reflected in the foregoing statements
        or in the notes thereto.

       

       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

       

      (b)  The
        unaudited consolidated balance sheet of the Company and its consolidated
        Subsidiaries as at June 25, 2005 and the related unaudited consolidated
        statements of income and of cash flows for the six-month period ended on
        such
        date, certified by a Responsible Officer, copies of which have heretofore
        been
        furnished to each Bank, are complete and correct and present fairly the
        consolidated financial condition of the Company and its consolidated
        Subsidiaries as at such date, and the consolidated results of their operations
        and their consolidated cash flows for the nine-month period then ended (subject
        to normal year-end audit adjustments). All such financial statements, including
        the related schedules and notes thereto, have been prepared in accordance
        with
        GAAP applied consistently throughout the periods involved. Neither the Company
        nor any of its consolidated Subsidiaries had, at the date of the balance
        sheet
        referred to above, any material Guaranty Obligation, liability for taxes,
        or any
        long-term lease or unusual forward or long-term commitment, including, without
        limitation, any interest rate or foreign currency swap or exchange transaction,
        which is required by GAAP to be but is not reflected in the foregoing statements
        or in the notes thereto.

       

      3.2  No
        Change

       

      .
        Except
        as provided on Schedule 3.2, since December 25, 2004, there has been no
        development or event nor any prospective development or event which has had
        or
        could reasonably be expected to have a Material Adverse Effect.

       

      3.3  Corporate
        Existence; Compliance with Law

       

      .
        Each of
        the Borrowers and its Subsidiaries (a) is duly organized, validly existing
        and
        in good standing under the laws of the jurisdiction of its organization,
        (b) has
        the corporate or other power and authority, and the legal right, to own and
        operate its property, to lease the property it operates as lessee and to
        conduct
        the business in which it is currently engaged, (c) is duly qualified to transact
        business and in good standing under the laws of each jurisdiction where its
        ownership, lease or operation of property or the conduct of its business
        requires such qualification, and (d) is in compliance with all Requirements
        of
        Law, in each case, except to the extent that its failure to have such power,
        authority or legal right, to qualify to do business, or to comply therewith
        could not, in the aggregate, reasonably be expected to have a Material Adverse
        Effect.

       

      3.4  Corporate
        Power; Authorization; Enforceable Obligations

       

      .
        Each of
        the Borrowers has the corporate or other power, authority, and legal right
        to
        make, deliver and perform this Agreement, the Applications and each other
        Loan
        Document to which it is a party and to borrow hereunder and has taken all
        necessary corporate or other action to authorize the Extensions of Credit
        on the
        terms and conditions of this Agreement and each other Loan Document to which
        it
        is a party and to authorize the execution, delivery and performance of this
        Agreement and each other Loan Document to which it is a party. No consent
        or
        authorization of, filing with or other act by or in respect of, any Governmental
        Authority or any other Person (including stockholders and creditors of the
        Borrowers) is required in connection with the Extensions of Credit hereunder
        or
        with the execution, delivery, performance, validity or enforceability of
        this
        Agreement, the Notes, the Applications or any other Loan Document. This
        Agreement has been and each other Loan Document to which it is a party will
        be,
        duly executed and delivered on behalf of such Borrower. This Agreement
        constitutes and each other Loan Document when executed and delivered will
        constitute, a legal, valid and binding obligation of the Borrowers party
        thereto
        enforceable against such Borrowers in accordance with their respective terms,
        except as enforceability may be limited by applicable bankruptcy, insolvency,
        reorganization, fraudulent transfer, moratorium or similar laws affecting
        the
        enforcement of 

       

       

      
        
          
          

        

        
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      creditors’
        rights generally and by general equitable principles (whether enforcement
        is
        sought by proceedings in equity or at law).

       

      3.5  No
        Legal Bar

       

      .
        The
        execution, delivery and performance of this Agreement, the Notes, the
        Applications and the other Loan Documents by the Borrowers, the Extensions
        of
        Credit extended hereunder and the use of the proceeds thereof will not violate
        any Requirement of Law or Contractual Obligation of any Borrower and will
        not
        result in, or require, the creation or imposition of any Lien on any properties
        or revenues of any Borrower pursuant to any such Requirement of Law or
        Contractual Obligation.

       

      3.6  No
        Material Litigation

       

      .
        Except
        as provided on Schedule 3.2, no litigation, investigation or proceeding of
        or
        before any arbitrator or Governmental Authority is pending or, to the knowledge
        of the Borrowers, threatened against any Borrower or against any of its or
        their
        respective properties or revenues (a) with respect to this Agreement, the
        Notes,
        the other Loan Documents or any of the transactions contemplated hereby,
        or
        (b) as to which there is a reasonable likelihood of an adverse
        determination and which, if adversely determined, would have a Material Adverse
        Effect.

       

      3.7  No
        Default

       

      .
        Neither
        the Company nor any other Borrower is in default under or with respect to
        any of
        its Contractual Obligations in any respect which would have a Material Adverse
        Effect. No Default or Event of Default has occurred and is
        continuing.

       

      3.8  Taxes

       

      .
        Each of
        the Borrowers has filed or caused to be filed all tax returns which, to its
        knowledge, are required to be filed and has paid all taxes shown to be due
        and
        payable on said returns or on any assessments made against it or any of its
        property and all other taxes, fees or other charges imposed on it or any
        of its
        property by any Governmental Authority (other than any the amount or validity
        of
        which are currently being contested in good faith by appropriate proceedings
        and
        with respect to which reserves, if any, in conformity with GAAP have been
        provided on the books of the Borrowers); no tax Lien has been filed against
        any
        of the Borrowers, and, to the knowledge of each of the Borrowers, no claim
        is
        being asserted, with respect to any such tax, fee or other charges.

       

      3.9  Federal
        Regulations

       

      .
        No part
        of the proceeds of any Loans will be used for “purchasing” or “carrying” any
“margin stock” within the respective meanings of each of the quoted terms under
        Regulation U or for any purpose which violates the provisions of
        Regulation U of the Board of Governors of the Federal Reserve System. If
        requested by any Bank or the Agent, the Borrowers will furnish to the Agent
        and
        each Bank a statement to the foregoing effect in conformity with the
        requirements of FR Form U-l referred to in said Regulation U. No part of
        the
        proceeds of the Loans hereunder will be used for any purpose which violates,
        or
        which is inconsistent with, the provisions of Regulation X.

       

      3.10  ERISA

       

      .
        Each
        Plan (such representations in respect of any Multiemployer Plan being made
        to
        the best knowledge of each Borrower) has complied in all material respects
        with
        the applicable provisions of ERISA and the Code. No prohibited transaction
        (as
        defined in subsection 7.1(k)) or Reportable Event (other than the Reportable
        Event resulting from the Amendment to the Company’s defined benefit pension
        Plan, effective March 26, 2005, pursuant to which the Company ceased the
        accrual
        of benefits under such Plan) has occurred during the 

       

       

      
        
          
          

        

        
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      five-year
        period prior to the date on which this representation is made or deemed made
        with respect to any Single Employer Plan. The present value of all accrued
        benefits under each Single Employer Plan of which any Borrower or a Commonly
        Controlled Entity is a sponsor (based on those assumptions used to fund the
        Plans), as calculated by such Borrower’s actuaries, did not, as of
        January 1, 2001, exceed the value of the assets of the Plans allocable to
        such benefits. Neither any Borrower nor any Commonly Controlled Entity has
        had a
        complete or partial withdrawal from any Multiemployer Plan and neither any
        Borrower nor any Commonly Controlled Entity would become subject under ERISA
        to
        any liability if any Borrower or any such Commonly Controlled Entity were
        to
        withdraw completely from any Multiemployer Plan as of the valuation date
        most
        closely preceding the date this representation is made or deemed made. Such
        Multiemployer Plans are neither in Reorganization as defined in Section 4241
        of
        ERISA nor Insolvent as defined in Section 4245 of ERISA. Neither any Borrower
        nor any Commonly Controlled Entity has any or has received notice of any
        liability under the Coal Industry Retiree Health Benefit Act of 1992. Neither
        a
        Reportable Event nor an “accumulated funding deficiency” within the meaning of
        Section 412 of the Code or Section 302 of ERISA has occurred during the
        five-year period prior to the date on which this representation is made or
        deemed made with respect to any Single Employer Plan or Multiemployer Plan.
        No
        termination of a Single Employer Plan has occurred, and no Lien on assets
        of any
        of the Borrowers or any Commonly Controlled Entity in favor of the PBGC or
        a
        Plan has arisen during such five-year period.

       

      3.11  Investment
        Company Act

       

      .
        None of
        the Borrowers is an “investment company”, or a company “controlled” by an
“investment company”, within the meaning of the Investment Company Act of 1940,
        as amended.

       

      3.12  Public
        Utility Holding Company Act

       

      .
        No
        Borrower is subject to regulation as a “holding company”, subject to regulation
        as an “affiliate” of a “holding company”, or subject to regulation as a
“subsidiary company” of a “holding company”, in each case under the Public
        Utility Holding Company Act of 1935, as amended.

       

      3.13  Environmental
        Matters

       

      .
        Except
        to the extent that all of the following would not reasonably be expected
        to have
        a Material Adverse Effect:

       

      (a)  The
        Properties do not contain, and have not previously contained, in, on, or
        under,
        including, without limitation, the soil and groundwater thereunder, any
        Materials of Environmental Concern in amounts or concentrations that constitute
        or constituted a violation of, and reasonably could give rise to liability
        to
        the Borrowers under Environmental Laws.

       

      (b)  The
        Properties and all operations and facilities at the Properties are in
        substantial compliance, and have in the last five years been in substantial
        compliance with all Environmental Laws, and there is no contamination at,
        under
        or about the Properties or violation of any Environmental Law with respect
        to
        the Properties or the business operated by any Borrower thereof which could
        interfere with the continued operation of any of the Properties or impair
        the
        fair saleable value of any thereof. None of the Borrowers has assumed any
        liability of any Person under Environmental Laws.

       

       

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

       

      (c)  Neither
        the Company nor any other Borrower nor any of their Subsidiaries has received
        or
        is aware of any claim, notice of violation, alleged violation, non-compliance,
        investigation or advisory action or potential liability regarding environmental
        matters or compliance of Environmental Law with regard to the Properties
        which
        has not been satisfactorily resolved by the Company or such other Borrower,
        nor
        is the Company nor any other Borrower aware or have reason to believe that
        any
        such action is being contemplated, considered or threatened.

       

      (d)  Materials
        of Environmental Concern have not been generated, treated, stored, transported,
        disposed of, at, on, from or under any of the Properties by any of the
        Borrowers, nor have any Materials of Environmental Concern been transferred
        by
        any of the Borrowers from the Properties to any other location except in
        either
        case in the ordinary course of business of the Borrowers in substantial
        compliance with all Environmental Laws and such that it would not reasonably
        be
        expected to give rise to liability to the Borrowers under any applicable
        Environmental Law.

       

      (e)  There
        are
        no governmental, administrative actions or judicial proceedings pending or,
        to
        the best knowledge of each Borrower after reasonable inquiry, contemplated
        or
        threatened under any Environmental Laws to which the Company is or will be
        named
        as a party with respect to the Properties, nor are there any consent decrees
        or
        other decrees, consent orders, administrative orders or other orders, or
        other
        administrative or judicial requirements outstanding under any Environmental
        Law
        with respect to any of the Properties to the best knowledge of each Borrower
        after reasonable inquiry.

       

      (f)  There
        has
        been no release or threat of release of Materials of Environmental Concern
        at or
        from the Properties, or arising from or related to the operation of the
        Borrowers in connection with the Properties or otherwise in connection with
        the
        business operated by the Borrowers in violation of or in amounts or in a
        manner
        that could reasonably be expected to give rise to liability to the Borrowers
        under any Environmental Law.

       

      (g)  To
        the
        best knowledge of the Borrowers after reasonable inquiry, each of the
        representations and warranties set forth in paragraphs 3.13(a) through 3.13(f)
        is true and correct with respect to each Property.

       

      3.14  No
        Material Misstatements

       

      .
        No
        financial statement, exhibit or schedule furnished by or on behalf of any
        Borrower to the Agent or any Bank in connection with the negotiation of this
        Agreement, any Note or any other Loan Document contains any misstatement
        of
        fact, or omitted or omits to state any fact necessary to make the statements
        therein not misleading under the circumstances under which they were made
        or
        given, where such misstatement or omission would be material to the interests
        of
        the Banks with respect to the performance of one or more Borrowers of its
        or
        their obligations hereunder or thereunder. Prior to the date hereof,  the
        Borrowers have disclosed to the Banks in writing any and all facts which
        materially and adversely affect (to the extent the Borrowers can as of the
        date
        hereof reasonably foresee), the business, operations or financial condition
        of
        the Company and its Subsidiaries taken as a whole, and the ability of the
        Borrowers to perform their obligations under this Agreement, the Notes and
        the
        other Loan Documents.

       

       

      
        
          
          

        

        
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      3.15  Title
        to Properties

       

      .
        The
        Borrowers have good and marketable title to or valid leasehold interest in
        all
        material properties, assets and other rights which they purport to own or
        lease,
        respectively, or which are reflected as owned or leased on their respective
        books and records, free and clear of all Liens and encumbrances except Permitted
        Liens, and subject to the terms and conditions of the applicable leases,
        except
        for minor defects in title that do not interfere in any material respect
        with
        their ability to conduct their businesses as presently conducted. All leases
        of
        property are in full force and effect without the necessity for any consent
        (which has not previously been obtained) upon consummation of the transactions
        contemplated hereby unless the failure to obtain or maintain such consent
        would
        not have a Material Adverse Effect.

       

      3.16  Intellectual
        Property

       

      .
        Each of
        the Borrowers owns, or is licensed to use, all trademarks, tradenames,
        copyrights, technology, know-how and processes necessary for the conduct
        of its
        business as currently conducted (the “Intellectual Property”), except for those
        as to which the failure to own or license would not reasonably be expected
        to
        have a Material Adverse Effect. No claim has been asserted and is pending
        by any
        Person challenging or questioning the use of any such Intellectual Property,
        nor
        does such Borrower know of any valid basis for any such claim. The use of
        such
        Intellectual Property by the Borrowers does not infringe the rights of any
        Person, except for such claims and infringements that, in the aggregate,
        could
        not have a Material Adverse Effect.

       

      3.17  No
        Burdensome Restrictions; List of Subsidiaries

       

      .
        No
        Requirement of Law or Contractual Obligation of any of the Borrowers could
        reasonably be expected to have a Material Adverse Effect. All of the direct
        or
        indirect Subsidiaries of the Company are Borrowers under this
        Agreement.

       

      3.18  Solvency

       

      .
        Each of
        the Borrowers is, and after receipt and application of the initial Loans
        hereunder will be, solvent such that: (a) the fair value of its assets
        (including without limitation the fair salable value of the goodwill and
        other
        intangible property of such Borrower) is greater than the total amount of
        its
        liabilities, including without limitation, Guaranty Obligations, (b) the
        present
        fair salable value of its assets (including without limitation the fair salable
        value of the goodwill and other intangible property of such Borrower) is
        not
        less than the amount that will be required to pay the probable liability
        on its
        debts as they become absolute and matured, and (c) it is able to realize
        upon its assets and pay its debts and other liabilities and commitments
        (including Guaranty Obligations) as they mature in the normal course of
        business; provided, that with respect to the obligations outstanding under
        this
        Agreement and any payments made with respect thereto, the common law right
        of
        and to contribution and subrogation among the Borrowers and any other rights
        to
        payment between and among any one or more of the Borrowers shall be taken
        into
        account in determining whether each Borrower is solvent. Each Borrower (a)
        does
        not intend to, and does not believe that it will, incur debts or liabilities
        beyond its ability to pay as such debts and liabilities mature, and (b) is
        not
        engaged in a business or transaction, or about to engage in a business or
        transaction, for which its property would constitute unreasonably small capital
        after giving due consideration to the prevailing practice and industry in
        which
        it is engaged; provided, that with respect to the obligations outstanding
        under
        this Agreement and any payments made with respect thereto, the common law
        right
        of and to contribution and subrogation among the Borrowers and any other
        rights
        to payment between and among any one or more of the Borrowers shall be taken
        into 

       

       

      
        
          
          

        

        
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      account
        in determining whether each Borrower is able to pay such debts and liabilities
        as they mature or whether such Borrower’s property would constitute sufficient
        capital.

       

      3.19  Insurance

       

      .
        The
        Borrowers currently maintain insurance which meets or exceeds the requirements
        of Section 5.5 No notice has been given or claim made and no grounds exist
        to
        cancel or avoid any insurance policies or other bonds to which the Borrowers
        are
        a party or to reduce the coverage provided thereby or any replacements thereof.
        Such policies and bonds or any replacements thereof provide adequate coverage
        from reputable and financially sound insurers in amounts sufficient to insure
        the assets and risks of the Borrowers in accordance with prudent business
        practice in the industry of the Borrowers.

       

      3.20  Anti-Terrorism
        Laws

       

      (a)  General.
        None of
        the Borrowers nor any Subsidiary or Affiliate of any of the Borrowers is
        in
        violation of any Anti-Terrorism Law nor does any Borrower engage in or conspire
        to engage in any transaction that evades or avoids, or has the purpose of
        evading or avoiding, or attempts to violate, any of the prohibitions set
        forth
        in any Anti-Terrorism Law.

       

      (b)  Executive
        Order No. 13224.
        None of
        the Borrowers nor any of their respective Subsidiaries, Affiliates or agents
        acting or benefiting in any capacity in connection with the Loans made or
        the
        Letters of Credit issued hereunder or other transactions contemplated by
        this
        hereby, is any of the following (each a “Blocked
        Person”):

       

      (i)  a
        Person
        that is listed in the annex to, or is otherwise subject to the provisions
        of,
        Executive Order No. 13224;

       

      (ii)  a
        Person
        owned or controlled by, or acting for or on behalf of, any Person that is
        listed
        in the annex to, or is otherwise subject to the provisions of, Executive
        Order
        No. 13224;

       

      (iii)  a
        Person
        with which any Bank is prohibited from dealing or otherwise engaging in any
        transaction by any Anti-Terrorism Law;

       

      (iv)  a
        Person
        that commits, threatens or conspires to commit or supports “terrorism” as
        defined in Executive Order No. 13224;

       

      (v)  a
        Person
        that is named as a “specially designated national” on the most current list
        published by the U.S. Treasury Department Office of Foreign Asset Control
        at its
        official website or any replacement website or other replacement official
        publication of such list, or

       

      (vi)  a
        Person
        who is an Affiliate of a Person listed above.

       

      No
        Borrower, nor to the knowledge any Borrower, any of its Subsidiaries, Affiliates
        or agents acting in any capacity in connection with the Loans made or the
        Letters of Credit issued hereunder or other transactions contemplated hereby
        (i)
        conducts any business with, or engages in making or receiving any contribution
        of funds, goods or services to or for the benefit of any 

       

       

      
        
          
          

        

        
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      Blocked
        Person, or (ii) deals in, or otherwise engages in any transaction relating
        to,
        any property or interests in property blocked pursuant to Executive Order
        No.
        13224.

       

       

      SECTION
        4.   CONDITIONS
        PRECEDENT

       

      4.1  Conditions
        to Effectiveness

       

      .
        This
        Agreement shall become effective upon, and the agreement of the Banks to
        make
        any additional Extension of Credit shall be subject to, the satisfaction
        of each
        of the following conditions precedent:

       

      (a)  Credit
        Agreement and Notes.
        The
        Agent shall have received (i) this Agreement, (A) executed and delivered by
        a duly authorized officer of each Borrower, with a counterpart for each Bank,
        and (B) executed and delivered by a duly authorized officer of each Bank,
        (ii) for the account of each Bank, a Revolver Note and (iii) a Swing Line
        Note for the account of the Swing Line Bank.

       

      (b)  Corporate
        Proceedings; No Default.
        The
        Agent shall have received, with a counterpart for each Bank, a certificate
        of
        the Secretary or an Assistant Secretary of each Borrower dated as of the
        Effective Date certifying (A) that attached thereto is a true and complete
        copy of the resolutions, in form and substance satisfactory to the Agent,
        of the
        Board of Directors or other governing body of such Borrower authorizing (i)
        the
        execution, delivery and performance of this Agreement, the Notes and the
        other
        Loan Documents to which it is a party, and (ii) the Extensions of Credit
        contemplated hereunder and that such resolutions attached thereto have not
        been
        amended, modified, revoked or rescinded and (B) as to the incumbency and
        specimen signature of each officer executing any Loan Document on behalf
        of a
        Borrower and (C) that the representations contained in Section 3 are true
        and
        correct, that the Borrowers are in compliance with all covenants contained
        herein and there exists no Default or Event of Default as of the Effective
        Date
        after giving effect to any additional Extension of Credit
        hereunder.

       

      (c)  Corporate
        Documents.
        The
        Agent shall have received, with a counterpart for each Bank, true and complete
        copies of the articles or certificate of incorporation or other organizational
        documents certified by the Secretary of State or similar official of the
        state
        of organization of each Borrower, and the by-laws of each Borrower, in each
        case, certified as of the Effective Date as complete and correct copies thereof
        by the Secretary or an Assistant Secretary of such Borrower. The documents
        and
        certifications of the Secretary or an Assistant Secretary contemplated in
        this
        subsection may be included within the certificate contemplated by subsection
        4.1(b) above.

       

      (d)  Fees
        and Expenses.
        The
        Agent shall have received (i) the closing fee and the fees required to be
        paid
        on the Effective Date pursuant to this Agreement and the Commitment Letter
        and
        (ii) all other fees and expenses due and payable hereunder on or before the
        Effective Date (if then invoiced), including, without limitation, the reasonable
        fees and expenses accrued through the Effective Date of Ballard Spahr Andrews
        & Ingersoll, LLP, counsel to the Agent in connection with the transactions
        contemplated by the Loan Documents.

       

       

      
        
          
          

        

        
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      (e)  Legal
        Opinion.
        The
        Agent shall have received the executed legal opinion of Stradley Ronon Stevens
        & Young, LLP, counsel to the Borrowers covering such matters as the Agent
        may reasonably require.

       

      (f)  Insurance.
        The
        Agent shall have received Certificates of Insurance with respect to each
        Borrower’s fire, casualty, liability and other insurance covering its respective
        property and business.

       

      (g)  Good
        Standing.
        The
        Agent shall have received certificates of good standing, subsistence and/or
        status dated a recent date from the Secretary of State or appropriate taxing
        or
        other authorities in the jurisdiction of incorporation or organization of
        each
        Borrower and any other locations requested by the Agent.

       

      (h)  Citizens
        Loan Documents.
        The
        Agent shall have received and reviewed to its satisfaction final forms of
        the
        Citizens Loan Documents which are in effect on the Effective Date.

       

      4.2  Conditions
        to Each Extension of Credit

       

      .
        The
        agreement of each Bank to make any Extension of Credit requested to be made
        by
        it on any date (including, without limitation, the initial Extension of Credit
        on or after the Effective Date) is subject to the satisfaction of the following
        conditions precedent:

       

      (a)  Representations
        and Warranties.
        Each of
        the representations and warranties made by each Borrower herein or which
        are
        contained in any certificate, document or financial or other statement furnished
        at any time under or in connection herewith or therewith, shall be true and
        correct in all material respects on and as of such date as if made on and
        as of
        such date.

       

      (b)  No
        Default.
        No
        Default or Event of Default shall have occurred and be continuing on such
        date
        or after giving effect to the Extensions of Credit requested to be made on
        such
        date.

       

      (c)  Citizens
        Loan Documents.
        The
        Citizens Loan Documents in effect at the time of such request for an Extension
        of Credit, are in form and substance satisfactory to the Agent.

       

      (d)  Additional
        Matters.
        All
        corporate and other proceedings, and all documents, instruments and other
        legal
        matters in connection with the transactions contemplated by this Agreement
        and
        the other Loan Documents shall be satisfactory in form and substance to the
        Agent, and the Agent shall have received such other documents and legal opinions
        in respect of any aspect or consequence of the transactions contemplated
        hereby
        or thereby as it shall reasonably request. 

       

       

      Each
        request by the Borrowers for an Extension of Credit hereunder shall constitute
        a
        representation and warranty by the Borrowers as of the date of such Extension
        of
        Credit that the conditions contained in this Section 4.2 have been
        satisfied.

       

       

      
        
          
          

        

        
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      4.3  Effective
        Date; Transitional Arrangements

       

      (a)  Subject
        to the satisfaction of the conditions of Sections 4.1 and 4.2, this amendment
        and restatement of the Existing Credit Agreement shall become effective on
        such
        date (the “Effective
        Date”)
        and at
        such time as may be mutually agreeable to the parties following the execution
        and delivery hereof (“Closing”)
        at the
        offices of the Agent’s counsel, Ballard Spahr Andrews & Ingersoll, LLP, in
        Philadelphia, Pennsylvania.

       

      (b)  On
        the
        Effective Date, without the necessity of further action by any party: (i)
        the
        outstanding principal amount of the “364 Day Loans” and “Revolving Loans” (each
        as defined in the Existing Credit Agreement) owed to the Banks shall be
        converted and continued, together with any additional Revolving Loan to be
        made
        on the Effective Date, as Revolving Loans as if made by the Banks pursuant
        to
        this Agreement in accordance with their respective Commitment Percentages
        and
        (iv) each Existing Letter of Credit shall continue in full force and effect
        as a Letter of Credit issued under this Agreement for so long as such Letter
        of
        Credit remains outstanding or any draft thereunder has not been reimbursed,
        and
        all Loans shall be entitled to the security and subject to the provisions
        set
        forth in this Agreement. Each Bank agrees to participate in all such Letters
        of
        Credit in accordance with the terms of this Agreement as if each such Letter
        of
        Credit were issued hereunder.

       

      (c)  To
        the
        extent that a Bank’s Commitment Percentage has changed on the Effective Date,
        the outstanding Revolving Loans (or portion thereof) owed to the Banks will
        be
        reallocated so as to be consistent with the Commitment Percentages as determined
        as of the Effective Date. Unless waived by the Banks, the Borrowers agree
        to
        indemnify the Banks for all costs, charges, fees and expenses, including,
        any
        breakage fees as set forth in Section 2.17 hereof, incurred by any of the
        Banks
        in connection with such reallocation of the Revolving Loans.

       

      (d)  Except
        as
        otherwise provided herein, the Existing Credit Agreement and the promissory
        notes issued thereunder shall be superseded by this Agreement, the Notes
        and the
        other Loan Documents and shall be of no further force or effect and such
        promissory notes issued under the Existing Credit Agreement shall be surrendered
        by the lenders party thereto to the Agent and returned to the Borrowers’
Representative. Notwithstanding the amendment and restatement of the Existing
        Credit Agreement by this Agreement, the Borrowers shall continue to be liable
        to
        the Agent and those lenders party to the Existing Credit Agreement with respect
        to agreements on the part of the Borrowers under the Existing Credit Agreement
        to pay all principal, interest, fees and other amounts that have accrued
        on or
        before the date hereof and to indemnify and hold harmless the Agent and such
        lenders from and against all claims, demands, liabilities, damages, losses,
        costs, charges and expenses to which the Agent and such lenders may be subject
        arising in connection with the Existing Credit Agreement and as to which
        the
        Borrowers have agreed under the Existing Credit Agreement to indemnify and
        hold
        harmless the Agent and such lenders. This Agreement is given as a substitution
        of, and not as a payment of, the obligations of the Borrowers under the Existing
        Credit Agreement and is not intended to constitute a novation of the Existing
        Credit Agreement.

       

      (e)  All
        interest and all commitment, facility and other fees and expenses owing or
        accruing under or in respect of the Existing Credit Agreement shall be

       

       

      
        
          
          

        

        
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      calculated
        as of the Effective Date (prorated in the case of any fractional periods),
        and
        shall be paid on such date to the parties and in accordance with the method
        specified in the Existing Credit Agreement, as if it were still in
        effect.

       

       

      SECTION
        5.   AFFIRMATIVE
        COVENANTS

       

      Each
        of
        the Borrowers hereby agrees that, so long as any of the Commitments remain
        in
        effect, any Note or Letter of Credit remains outstanding and unpaid, or any
        other amount is owing to any Bank or the Agent hereunder, such Borrower
        shall:

       

      5.1  Financial
        Statements

       

      .
        Furnish
        to each Bank:

       

      (a)  as
        soon
        as available, but in any event not later than 90 days after the close of
        each
        fiscal year of the Company, an audited consolidated balance sheet of the
        Company
        and its consolidated Subsidiaries as at the end of such fiscal year, and
        related
        consolidated statements of income and retained earnings and changes in cash
        flows of the Company and its consolidated Subsidiaries for such fiscal year,
        all
        in reasonable detail, prepared in accordance with GAAP applied on a basis
        consistently maintained throughout the period involved and with the prior
        year
        with such changes thereon as shall be approved by the Company’s independent
        certified public accountants, such financial statements to be certified by
        PricewaterhouseCoopers L.L.P. or other nationally recognized independent
        certified public accountants selected by the Company and reasonably acceptable
        to the Agent, without a “going concern” or like qualification or exception
        arising out of the scope of the audit; such financial statements shall be
        accompanied by a certificate of a Responsible Officer of the Company stating
        that the financial statements fairly present the financial condition of the
        Company and its consolidated Subsidiaries as of the date and for the periods
        covered thereby; and

       

      (b)  as
        soon
        as available, but in any event not later than 45 days after the end of each
        of
        the first three quarterly periods of each fiscal year of the Company, unaudited
        consolidated financial statements of the Company and its consolidated
        Subsidiaries, including therein (i) a consolidated balance sheet of the Company
        and its consolidated Subsidiaries as at the end of such fiscal quarter, (ii)
        the
        related consolidated statements of income and retained earnings of the Company
        and its consolidated Subsidiaries, and (iii) the related consolidated statement
        of changes in cash flows of the Company and its consolidated Subsidiaries
        all
        for the period from the beginning of such fiscal quarter to the end of such
        fiscal quarter and the portion of the fiscal year through the end of such
        quarter, setting forth in each case in comparative form the corresponding
        figures for the like period of the preceding fiscal year; all in reasonable
        detail, prepared in accordance with GAAP applied on a basis consistently
        maintained throughout the period involved and with prior periods and accompanied
        by a certificate of a Responsible Officer of the Company stating that the
        financial statements fairly present the financial condition of the Company
        and
        its consolidated Subsidiaries as of the date and for the periods covered
        thereby
        (subject to normal year-end audit adjustments).

       

      5.2  Certificates;
        Other Information

      .
        Furnish
        to each Bank:

       

      (a)  concurrently
        with the delivery of the financial statements referred to in subsection 5.1(a),
        a certificate of the Company’s independent certified public accountants

       

       

      
        
          
          

        

        
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      reporting
        on such financial statements stating that in making the examination necessary
        for certifying such financial statements no knowledge was obtained of any
        Default or Event of Default, except as specifically indicated;

       

      (b)  concurrently
        with the delivery of the financial statements referred to in subsections
        5.1(a)
        and 5.1(b), a certificate of a Responsible Officer of the Company (each a
        “Compliance
        Certificate”)
        showing in detail the calculations demonstrating compliance with the financial
        covenants set forth in Section 6.1, together with a certificate of a
        Responsible Officer of the Company stating that, to the best of his or her
        knowledge, each of the Borrowers during such period has kept, observed,
        performed and fulfilled each and every covenant and condition contained in
        this
        Agreement and in the Notes and the other Loan Documents to which it is a
        party
        and that such officer has obtained no knowledge of any Default or Event of
        Default except as specifically indicated; if the Compliance Certificate shall
        indicate that such officer has obtained knowledge of a Default or Event of
        Default, such Compliance Certificate shall state what efforts the Borrowers
        are
        making to cure such Default or Event of Default; and

       

      (c)  promptly,
        such forecasts, budgets and additional financial information as the Agent
        or any
        Bank may from time to time reasonably request.

       

      5.3  Payment
        of Obligations

       

      .
        Pay,
        discharge or otherwise satisfy at or before maturity or before they become
        delinquent, as the case may be, all its obligations of whatever nature
        (including but not limited to all taxes, assessments and governmental charges
        and levies upon them or upon any of their respective income, profits or property
        prior to the date on which penalties attach thereto), except where the amount
        or
        validity thereof is currently being contested in good faith by appropriate
        proceedings and reserves in conformity with GAAP with respect thereto have
        been
        provided on the books of the Company or its Subsidiaries, as the case may
        be.

       

      5.4  Maintenance
        of Existence

       

      .
        Preserve, renew and keep in full force and effect its corporate existence
        and
        take all reasonable action to maintain all rights, privileges and franchises
        necessary or desirable in the normal conduct of its business; comply with
        all
        Contractual Obligations and Requirements of Law, except to the extent that
        failure to comply therewith would not individually or in the aggregate,
        reasonably be expected to have a Material Adverse Effect.

       

      5.5  Maintenance
        of Insurance; Property

       

      (a)  Insure
        its properties and assets against loss or damage by fire and such other
        insurable hazards as such assets are commonly insured (including fire, extended
        coverage, property damage, worker’s compensation, public liability and business
        interruption insurance) and against other risks in such amounts as similar
        properties and assets are insured by prudent companies in similar circumstances
        carrying on similar businesses, and with reputable and financially sound
        insurers, including self insurance to the extent customary. The Borrowers
        shall
        deliver, at the request of the Agent or any Bank, from time to time a summary
        schedule indicating all insurance then in force with respect to the
        Borrowers.

       

      (b)  Maintain
        in good repair, working order and condition (ordinary wear and tear and casualty
        excepted) in accordance with the general practice of other businesses

       

       

      
        
          
          

        

        
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      of
        similar character and size, all of those properties useful or necessary to
        its
        business, and, from time to time, each of the Company and its Subsidiaries
        will
        make or cause to be made all appropriate repairs, renewals or replacements
        thereof.

       

      5.6  Inspection
        of Property; Books and Records; Discussions.

       

       Keep
        proper books of records and account in which full, true and correct entries
        in
        conformity with GAAP and all Requirements of Law shall be made of all dealings
        and transactions in relation to its business and activities; and upon reasonable
        notice permit representatives of any Bank to visit and inspect any of its
        properties and examine and make abstracts from any of its books and records
        during normal business hours and as often as may reasonably be desired and
        to
        discuss the business, operations, properties and financial and other condition
        of the Company and its Subsidiaries with officers and employees of the Company
        and its Subsidiaries.

       

      5.7  Notices.

       

      .Promptly
        give notice to the Agent and each Bank of:

       

      (a)  the
        occurrence of any Default or Event of Default;

       

      (b)  any
        (i) default or event of default under any Contractual Obligation of any
        Borrower or (ii) litigation, investigation or proceeding which may exist at
        any time between any Borrower and any Governmental Authority, which in either
        case, if not cured or if adversely determined, as the case may be, would
        have a
        Material Adverse Effect;

       

      (c)  any
        litigation, investigation or proceeding affecting any Borrower which, if
        adversely determined, would have a Material Adverse Effect;

       

      (d)  the
        following events, as soon as possible and in any event within 30 days after
        any
        Borrower knows or has reason to know thereof: (i) the occurrence or
        expected occurrence of any Reportable Event with respect to any Plan, a failure
        to make any required contribution to a Plan, any Lien in favor of PBGC or
        a Plan
        or any withdrawal from, or the termination, Reorganization or Insolvency
        of any
        Multiemployer Plan or (ii) the institution of proceedings or the taking of
        any other action by the PBGC or any Borrower or any Commonly Controlled Entity
        or any Multiemployer Plan with respect to the withdrawal from, or the
        terminating, Reorganization or Insolvency of, any Plan or (iii) an
        assessment of liability under the Coal Industry Retiree Health Benefit Act
        of
        1992; and

       

      (e)  any
        other
        event which has had or would reasonably be expected to have a Material Adverse
        Effect.

       

      Each
        notice pursuant to this Section shall be accompanied by a statement of a
        Responsible Officer setting forth details of the occurrence referred to therein
        and stating what action the Borrowers and their Subsidiaries propose to take
        with respect thereto.

       

      5.8  Environmental
        Laws

       

      (a)  Comply
        with, and require compliance by all tenants and all subtenants, if any, in
        all
        material respects with all Environmental Laws and obtain and comply with
        and
        maintain, and require that all tenants and subtenants obtain and comply in
        all
        material respects with and maintain, any and all licenses, approvals,
        registrations or permits required by 

       

       

      
        
          
          

        

        
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      Environmental
        Laws, except in each case to the extent that failure to so comply or obtain
        or
        maintain such documents could not reasonably be expected to have a Material
        Adverse Effect;

       

      (b)  Comply
        in
        all material respects with all lawful and binding orders and directives of
        all
        Governmental Authorities respecting Environmental Laws; and

       

      (c)  Defend,
        indemnify and hold harmless the Agent and the Banks, and their respective
        employees, agents, officers, directors, successors and assigns from and against
        any claims, demands, penalties, fines, liabilities, settlements, damages,
        costs
        and expenses of whatever kind or nature known or unknown, contingent or
        otherwise, arising out of, or in any way relating to any violation of or
        noncompliance with or liability under any Environmental Laws, or any orders,
        requirements or demands of Governmental Authorities related thereto which
        in
        each case relate to or arise in connection with any Borrower, any Property
        or
        any activities relating to any other property or business of a Borrower or
        the
        enforcement of any rights provided herein or in the other Loan Documents,
        including, without limitation, attorneys’ and consultants’ fees, response costs,
        investigation and laboratory fees, court costs and litigation expenses, except
        to the extent that any of the foregoing arise out of the gross negligence
        or
        willful misconduct of any of the foregoing enumerated parties. This indemnity
        shall continue in full force and effect regardless of the termination of
        this
        Agreement and the payment of the Notes.

       

      5.9  Notice
        and Joinder of New Subsidiaries.

       

      Notify
        the Agent as soon as practicable of its ownership of any Subsidiary that
        is not
        a Borrower and cause such Subsidiary to execute and deliver to the Agent
        a
        Joinder and Assumption Agreement pursuant to which it shall, among other
        things,
        become a Borrower hereunder.

       

      5.10  Use
        of
        Proceeds.

       

      Use
        the
        proceeds of the Loans (i) for working capital and general corporate purposes
        in
        the ordinary course of business including to pay all or a portion of the
        purchase price for Permitted Acquisitions and (ii) to repay Indebtedness
        under
        the Existing Credit Agreement.

       

      5.11  Tax
        Shelter Regulations.

       

      None
        of
        the Borrowers intends to treat any Extension of Credit or other transactions
        under this Agreement as being a “reportable transaction” (within the meaning of
        Treasury Regulation Section 1.6011-4). In the event any of the Borrowers
        determines to take any action inconsistent with such intention, such Borrower
        will promptly (1)
        notify
        the Agent thereof, and (2)
        deliver
        to the Agent a duly completed copy of IRS Form 8886 or any successor form.
        If
        any Borrower so notifies the Agent, such Borrower acknowledges that one or
        more
        of the Banks may treat its Extensions of Credit as part of a transaction
        that is
        subject to Treasury Regulation Section 301.6112-1, and such Bank or Banks,
        as
        applicable, will maintain the lists and other records required by such Treasury
        Regulation.

       

      5.12  Anti-Terrorism
        Laws.

       

      The
        Borrowers and their respective Subsidiaries, Affiliates and agents shall
        not
(a) conduct
        any business or engage in any transaction or dealing with any Blocked Person,
        including the making of or receiving any contribution of funds, goods or
        services to or for the benefit of any Blocked Person; (b) deal
        in, or otherwise engage in any transaction relating to, any property or
        interests in property blocked pursuant to Executive Order No. 13224; or
(c) engage
        in or conspire to engage in any transaction that evades or avoids, or has
        

       

       

      
        
          
          

        

        
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      the
        purpose of evading or avoiding, or attempts to violate, any of the prohibitions
        set forth in Executive Order No. 13224 or the USA Patriot Act. The Borrowers
        shall deliver to the Banks any certification or other evidence reasonably
        requested from time to time by any Bank, confirming the Borrowers’ compliance
        with this Section 5.12.

       

       

      SECTION
        6.   NEGATIVE
        COVENANTS

       

      Each
        of
        the Borrowers hereby agrees that, so long as any Commitments remain in effect,
        any Note or Letter of Credit remains outstanding and unpaid, or any other
        amount
        is owing to any Bank or Agent hereunder, such Borrower shall not, directly
        or
        indirectly:

       

      6.1  Financial
        Condition Covenants

       

      (a)  Minimum
        Tangible Net Worth.
        Permit
        the Tangible Net Worth of the Company and its consolidated Subsidiaries at
        any
        time to be less than the sum of (i) $38,500,000, plus (ii) on a cumulative
        basis
        any non-cash pension gains recorded during any fiscal quarter commencing
        with
        the fiscal quarter ending September 30, 2005, minus (iii) on a cumulative
        basis
        any non-cash pension charges recorded for any fiscal quarter commencing with
        the
        fiscal quarter ending September 30, 2005, but only to the extent such charges
        do
        not exceed twenty percent (20%) of Tangible Net Worth as determined as of
        the
        last day of any such fiscal quarter plus (iv) on a cumulative basis fifty
        percent (50%) of net income (or, in the case of a deficit, zero percent (0%))
        for the Company and its consolidated Subsidiaries in respect of each fiscal
        quarter commencing with the Borrowers’ fiscal quarter ending June 30, 2005,
        with each increase or decrease to be effective as of the last day of each
        such
        fiscal quarter.

       

      (b)  Fixed
        Charge Coverage Ratio.
        Permit,
        as of the end of any fiscal quarter, the Fixed Charge Coverage Ratio to be
        less
        than 1.25 to 1.00.

       

      (c)  Leverage
        Ratio.
        Permit,
        as of the end of any fiscal quarter, the Leverage Ratio to exceed 3.00 to
        1.00.

       

      6.2  Limitation
        on Liens

       

      .
        Create,
        incur, assume or suffer to exist any Lien upon any of its property, assets
        or
        revenues, whether now owned or hereafter acquired, except for Permitted
        Liens.

       

      6.3  Limitations
        on Fundamental Changes

       

      .
        Enter
        into any merger, consolidation or amalgamation, or liquidate, wind up or
        dissolve itself (or suffer any liquidation or dissolution), or convey, sell,
        lease, assign, transfer or otherwise dispose of, all or substantially all
        of its
        property, business or assets, except that:

       

      (a)  any
        Subsidiary of the Company may be merged or consolidated with or into the
        Company
        (provided
        that the
        Company shall be the continuing or surviving corporation) or with or into
        any
        Borrower (provided
        that
        such Borrower shall be the continuing or surviving corporation or such surviving
        or continuing corporation becomes a Borrower hereunder pursuant to Section
        5.9);
        and

       

       

       

      
        
          
          

        

        
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      (b)  any
        Subsidiary of the Company may sell, lease, transfer or otherwise dispose
        of any
        or all of its assets (upon voluntary liquidation or otherwise) to a
        Borrower;

       

      provided,
        that
        immediately after any such transaction referred to in paragraphs (a) and
        (b)
        above and after giving effect thereto, each of the Borrowers is in compliance
        with this Agreement and no Default or Event of Default shall have occurred
        and
        be continuing or result from such transaction.

       

      6.4  Limitation
        on Indebtedness.

       

      Create,
        incur, assume or suffer to exist, directly or indirectly any Indebtedness
        except
        the following (“Permitted Indebtedness”): (a) the obligations of the Borrowers
        to the Banks hereunder; (b) the Citizens Unsecured Term Loan; (c) the Citizens
        Secured Term Loan, (d) Indebtedness secured by Permitted Liens to the extent
        that any such Indebtedness secured by (i) Purchase Money Security Interests
        does
        not exceed $5,000,000 in the aggregate, and (ii) Liens created pursuant to
        Capital Leases (other than Liens existing or created pursuant to the Capital
        Lease for the manufacturing facility located on the Hunting Park Property)
        does
        not exceed $5,500,000 in the aggregate; (c) Indebtedness existing on the
        date
        hereof and shown on Schedule 6.4; (d) current trade accounts payable incurred
        in
        the ordinary course of business; and (e) intercompany indebtedness to the
        extent
        permitted by Section 6.6.

       

      6.5  Limitation
        on Sale of Assets.

       

      Convey,
        sell, lease, assign, transfer or otherwise dispose of any of its property,
        business or assets (including, without limitation, receivables and leasehold
        interests and Capital Stock or equity interests in any Subsidiary that is
        or is
        required to be a Borrower hereunder), whether now owned or hereafter acquired,
        except:

       

      (a)  any
        sale,
        transfer or lease of assets which are no longer necessary or required in
        the
        conduct of the Borrowers’ business;

       

      (b)  transactions
        involving the sale or lease of inventory in the ordinary course of
        business;

       

      (c)  the
        sale
        or discount without recourse of accounts receivable arising in the ordinary
        course of business in connection with the compromise or collection in the
        ordinary course of business of such accounts receivable; and

       

      (d)  as
        permitted by Section 6.3.

       

      6.6  Transactions
        with Affiliates.

       

      Except
        as
        expressly permitted in this Agreement, directly or indirectly enter into
        any
        transaction or arrangement whatsoever (including without limitations any
        purchase, sale, lease or exchange of property or the rendering of any service)
        or make any payment to or otherwise deal with any Affiliate, except, as to
        all
        of the foregoing (i) in the ordinary course of and pursuant to the
        reasonable requirements of such Borrower’s business and upon fair and reasonable
        terms no less favorable to such Borrower than would be obtained in a comparable
        arm’s length transaction with a Person not an Affiliate and
        (ii) intercompany loans among the Borrowers in the ordinary course of and
        pursuant to the reasonable requirements of such Borrowers’
business.

       

       

      
        
          
          

        

        
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      6.7  Sale
        and Leaseback.

       

      Enter
        into any arrangement with any Person providing for the leasing by such Borrower
        of real or personal property which has been or is to be sold or transferred
        by
        such Borrower to such Person or to any other Person to whom funds have been
        or
        are to be advanced by such Person on the security of such property or rental
        obligations thereof.

       

      6.8  Limitation
        on Acquisitions, Investments, Loans and Advances.

       

      Purchase,
        hold or acquire beneficially any stock, other securities or evidences of
        indebtedness of, or all or a substantial amount of the assets of, make or
        permit
        to exist any loans or advances to, or make or permit to exist any investment
        or
        acquire any interest whatsoever in, any other Person, except:

       

      (a)  extensions
        of trade credit to customers in the ordinary course of business;

       

      (b)  Permitted
        Investments;

       

      (c)  Capital
        Stock of any Borrower;

       

      (d)  loans
        and
        advances to or other investments in any Borrower;

       

      (e)  loans
        and
        advances to employees of the Borrowers and their Subsidiaries for travel
        and
        entertainment expenses in the ordinary course of business; and

       

      (f)  Permitted
        Acquisitions.

       

      6.9  No
        Negative Pledge.

       

       Enter
        into any agreement after the date hereof with any Person other than the Agent
        on
        behalf of the Banks pursuant to which any Borrower covenants or agrees to
        a
        prohibition upon creating, incurring, or suffering any Lien upon any of its
        properties, assets or revenues, whether now owned or hereafter acquired,
        except
        (a) the Citizens Loan Agreement and the Hunting Park Mortgage or (b) in
        connection with a Capital Lease or Purchase Money Security Interest, in which
        case such agreement shall be permitted but only with respect to the specific
        asset or assets subject to such Capital Lease or Purchase Money Security
        Interest.

       

      6.10  Fiscal
        Year.

       

      Permit
        the fiscal year of a Borrower to end on a day other than the last Saturday
        of
        December.

       

      6.11  Limitation
        on Conduct of Business.

       

      Discontinue
        any substantial part of their existing businesses or enter into any business
        except for businesses in which the Borrowers are engaged on the date of this
        Agreement and businesses related to the manufacture or distribution of food
        products.

       

      6.12  Capital
        Expenditures.

       

      Contract
        for, purchase or make any expenditure or commitments for Capital Expenditures
        in
        an aggregate amount in excess of (a) $15,000,000 during any fiscal year or
        (b)
        $55,000,000 during the Revolver Commitment Period.

       

       

      
        
          
          

        

        
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      SECTION
        7.   EVENTS
        OF DEFAULT

       

      7.1  Events
        of Default.

       

       If
        any of the following events shall occur and be continuing:

       

      (a)  A
        Borrower (i) shall fail to pay when due any principal on any Note or any
        Reimbursement Obligation when due, or (ii) shall fail to pay any other
        amount payable hereunder or thereunder (including without limitation any
        interest or fees) within three (3) Business Days after the date due in
        accordance with the terms thereof or hereof; or

       

      (b)  Any
        representation or warranty made or deemed made by a Borrower herein or in
        any
        other Loan Document or which is contained in any certificate or financial
        statement furnished at any time under or in connection with this Agreement
        shall
        prove to have been incorrect or misleading in any material respect on or
        as of
        the date made or deemed made; or

       

      (c)  A
        Borrower shall default in the observance or performance of any agreement
        contained in Section 5.9 and Section 6 of this Agreement; or

       

      (d)  A
        Borrower shall default in the observance or performance of any other agreement
        contained in this Agreement (other than as provided in subsections (a) through
        (c) above) or any other Loan Document, and such default shall continue
        unremedied (if it is capable of being remedied in such period) for a period
        of
        thirty (30) days after notice thereof; or

       

      (e)  a
        default
        or event of default shall exist under the Citizens Loan Documents;
        or

       

      (f)  A
        Borrower shall (i) default in the payment of any principal of or interest
        on or
        any other amount payable on any Indebtedness (other than the Notes) or in
        the
        payment of any Guaranty Obligation, beyond the period of grace, if any, provided
        in the instrument or agreement under which such Indebtedness or Guaranty
        Obligation was created and the aggregate amount of such Indebtedness and/or
        Guaranty Obligations in respect of which such default or defaults shall have
        occurred is at least $2,000,000; or (ii) default in the observance or
        performance of any other agreement or condition relating to any such
        Indebtedness or Guaranty Obligation or contained in any instrument or agreement
        evidencing, securing or relating thereto, or any other event shall occur
        or
        condition exist, the effect of which default or other event or condition
        is to
        cause, or to permit the holder or holders of such Indebtedness or beneficiary
        or
        beneficiaries of such Guaranty Obligation (or a trustee or agent on behalf
        of
        such holder or holders or beneficiary or beneficiaries) to cause, with the
        giving of notice if required, such Indebtedness to become due and payable
        prior
        to its stated maturity or such Guaranty Obligation to become payable, in
        each
        case, beyond the period of grace, if any, provided in the instrument or
        agreement under which such Indebtedness or Guaranty Obligation was created
        and
        the aggregate amount of such Indebtedness and/or Guaranty Obligations in
        respect
        of which such default or defaults shall have occurred is at least $2,000,000;
        or

       

      (g)  (i)
        A
        Borrower shall commence any case, proceeding or other action (A)
        under
        any existing or future law of any jurisdiction, domestic or foreign, relating
        to
        bankruptcy, insolvency, reorganization or relief of debtors, seeking to have
        an
        order for relief 

       

       

      
        
          
          

        

        
          58

          
            

          

        

        
          
          

        

      

       

      entered
        with respect to it, or seeking to adjudicate it a bankrupt or insolvent,
        or
        seeking reorganization, arrangement, adjustment, winding-up, liquidation,
        dissolution, composition or other relief with respect to it or its debts,
        or
(B)
        seeking
        appointment of a receiver, trustee, custodian or other similar official for
        it
        or for all or any substantial part of its assets, or a Borrower shall make
        a
        general assignment for the benefit of its creditors; or (ii)
        there
        shall be commenced against a Borrower any case, proceeding or other action
        of a
        nature referred to in clause (i) above which (A)
        results
        in the entry of an order for relief or any such adjudication or appointment
        or
(B)
        remains
        undismissed, undischarged or unbonded for a period of 60 days; or (iii)
        there
        shall be commenced against a Borrower any case, proceeding or other action
        seeking issuance of a warrant of attachment, execution, distraint or similar
        process against all or any substantial part of its assets which results in
        the
        entry of an order for any such relief which shall not have been vacated,
        discharged, satisfied, or stayed or bonded pending appeal within 60 days
        from
        the entry thereof; or (iv)
        a
        Borrower shall take any action in furtherance of, or indicating its consent
        to,
        approval of, or acquiescence in, any of the acts set forth in clause (i),
        (ii),
        or (iii) above; or (v)
        a
        Borrower shall generally not, or shall be unable to, or shall admit in writing
        its inability to, pay its debts as they generally become due; or

       

      (h)  One
        or
        more judgments or decrees shall be entered against a Borrower involving in
        the
        aggregate a liability of $5,000,000 or
        more
        and all such judgments or decrees shall not have been vacated, discharged,
        settled, satisfied or paid, or stayed or bonded pending appeal, within 30
        days
        from the entry thereof; or

       

      (i)  Any
        Change of Control shall occur; or

       

      (j)  Without
        limiting the covenants and representations made herein relating to environmental
        matters, any Borrower shall fail to (i) comply in all material respects with
        all
        Environmental Laws or obtain and comply with and maintain any and all licenses,
        approvals, registrations or permits required by Environmental Laws except
        to the
        extent that failure to so comply or obtain or maintain such documents would
        not
        reasonably be expected to have a Material Adverse Effect; or (ii) comply
        in all
        material respects with all lawful and binding orders and directives of all
        Governmental Authorities respecting Environmental Laws except, in each case,
        (x)
        if and to the extent such Borrower is contesting the application of any such
        Environmental Laws in good faith in appropriate proceedings for which adequate
        reserves have been established on its books or (y) if such Borrower is in
        the
        process of curing any such non-compliance as permitted by the provisions
        of such
        Environmental Laws or Governmental Authorities enforcing such Environmental
        Laws; or

       

      (k)  Without
        limiting the covenants and representations made herein relating ERISA matters
        (i) any
        Person shall engage in any “prohibited transaction” (as defined in Section 406
        of ERISA or Section 4975 of the Code) involving any Plan, (ii) any
        “accumulated funding deficiency” (as defined in Section 302 of ERISA), whether
        or not waived, shall exist with respect to any Plan or any Lien in favor
        of the
        PBGC or a Plan shall arise on the assets of the Company or any Commonly
        Controlled Entity, (iii) a
        Reportable Event shall occur with respect to, or proceedings shall commence
        to
        have a trustee appointed, or a trustee shall be appointed, to administer
        or to
        terminate, any Single Employer Plan, which Reportable Event or institution
        of
        proceedings or appointment of a trustee is, in the reasonable opinion of
        the
        Required Banks, likely to result in the termination of such Plan for purposes
        of
        Title IV of 

       

       

      
        
          
          

        

        
          59

          
            

          

        

        
          
          

        

      

       

      ERISA,
        (iv) any
        Single Employer Plan shall terminate for purposes of Title IV of ERISA,
(v) the
        Company or any Commonly Controlled Entity shall, or in the reasonable opinion
        of
        the Required Banks is likely to, incur any liability in connection with a
        withdrawal from, or the Insolvency or Reorganization of, a Multiemployer
        Plan or
(vi) any
        other event or condition shall occur or exist in regard to a Plan; and in
        each
        case in clauses (i) through (vi) above, such event or condition, together
        with
        all other such events or conditions, if any, could reasonably be expected
        to
        have a Material Adverse Effect; or

       

      (l)  the
        Company shall cease to own, directly or indirectly, one hundred percent (100%)
        of the legal and beneficial ownership of each other Borrower except pursuant
        to
        a transaction permitted under Section 6.3 or Section 6.5;

       

      then,
        and
        in any such event, (A) if such event is an Event of Default specified in
        clause
        (i) or (ii) of paragraph (g) above with respect to a Borrower, automatically
        the
        Commitments (including without limitation the obligations of the Issuing
        Bank to
        issue Letters of Credit and the Banks to participate therein) shall immediately
        terminate, and the Loans hereunder (with accrued interest thereon) and all
        other
        amounts owing under this Agreement, the Notes and the other Loan Documents
        shall
        automatically and immediately become due and payable (including, without
        limitation, all Letter of Credit Obligations, whether or not the beneficiaries
        of the then outstanding Letters of Credit shall have presented the documents
        required thereunder), and (B) if such event is any other Event of Default,
        with
        the consent of the Required Banks, the Agent may, or upon the written request
        of
        the Required Banks, the Agent shall, (i) by notice to the Company declare
        the
        Commitments to be terminated forthwith, whereupon the Commitments and the
        obligations of the Banks to make Loans, and the obligation of the Issuing
        Bank
        to issue Letters of Credit and of the Swing Line Bank to make Swing Line
        Loans
        and the Banks to participate in any Letters of Credit or Swing Line Loans
        thereafter issued shall immediately terminate; (ii) by notice of default
        to the
        Company, declare the Loans hereunder (with accrued interest thereon) and
        all
        other amounts owing under this Agreement, the Notes and the other Loan Documents
        to be due and payable forthwith, whereupon the same shall immediately become
        due
        and payable (including, without limitation, all Letter of Credit Obligations,
        whether or not the beneficiaries of the then outstanding Letters of Credit
        shall
        have presented the documents required thereunder); and/or (iii) by notice
        to the
        Company require the Borrowers to, and the Borrowers shall thereupon, deposit
        in
        a non-interest bearing account with the Agent, as cash collateral for their
        obligations under this Agreement, the Notes and the Applications, an amount
        equal to the Letter of Credit Coverage Requirement, and the Borrowers hereby
        pledge to the Agent and the Banks, and grant to the Agent and the Banks a
        security interest in, all such cash as security for such obligations. Amounts
        held in such cash collateral account shall be applied by the Agent to the
        payment of drafts drawn under such Letters of Credit, and the unused portion
        thereof after all such Letters of Credit shall have expired or been fully
        drawn
        upon, if any, shall be applied to repay other obligations of the Borrowers
        hereunder and under the Notes. After all such Letters of Credit shall have
        expired or been fully drawn upon, all Reimbursement Obligations shall have
        been
        satisfied and all other obligations of the Borrowers hereunder and under
        the
        Notes shall have been paid in full, the balance, if any, in such cash collateral
        account shall be returned to the Company. The Borrowers shall execute and
        deliver to the Agent, for the account of the Issuing Bank and the Letter
        of
        Credit Participants, such further documents and instruments as the Agent
        may
        request to evidence the creation and perfection of the within security interest
        in such cash 

       

       

      
        
          
          

        

        
          60

          
            

          

        

        
          
          

        

      

       

      collateral
        account. Except as expressly provided above in this Section, presentment,
        demand, protest and all other notices of any kind are hereby expressly
        waived.

       

       

      SECTION
        8.   THE
        AGENT

       

      8.1  Appointment.

       

      Each
        Bank
        hereby irrevocably designates and appoints PNC Bank, National Association
        as the
        Agent of such Bank under this Agreement and the other Loan Documents, and
        each
        such Bank irrevocably authorizes PNC Bank, National Association, as the Agent
        for such Bank, to take such action on its behalf under the provisions of
        this
        Agreement and the other Loan Documents and to exercise such powers and perform
        such duties as are expressly delegated to the Agent by the terms of this
        Agreement and the other Loan Documents, together with such other powers as
        are
        reasonably incidental thereto. Notwithstanding any provision to the contrary
        elsewhere in this Agreement and the other Loan Documents, the Agent shall
        not
        have any duties or responsibilities, except those expressly set forth herein
        or
        therein, or any fiduciary relationship with any Bank, and no implied covenants,
        functions, responsibilities, duties, obligations or liabilities shall be
        read
        into this Agreement and the other Loan Documents or otherwise exist against
        the
        Agent. PNC Bank, National Association agrees to act as the Agent on behalf
        of
        the Banks to the extent provided in this Agreement and the other Loan
        Documents.

       

      8.2  Delegation
        of Duties.

       

      The
        Agent
        may execute any of its duties under this Agreement and the other Loan Documents
        by or through agents or attorneys-in-fact and shall be entitled to engage
        and
        pay for the advice and services of counsel concerning all matters pertaining
        to
        such duties. The Agent shall not be responsible to the Banks for the negligence
        or misconduct of any agents or attorneys in-fact selected by it with reasonable
        care.

       

      8.3  Exculpatory
        Provisions.

       

      Neither
        the Agent nor any of its officers, directors, employees, agents,
        attorneys-in-fact or Affiliates shall be (a) liable for any action lawfully
        taken or omitted to be taken by it or such Person under or in connection
        with
        this Agreement or the other Loan Documents (except for its or such Person’s own
        gross negligence or willful misconduct) or (b) responsible in any manner
        to any
        of the Banks for any recitals, statements, representations or warranties
        made by
        a Borrower or any officer thereof contained in this Agreement, the other
        Loan
        Documents or in any certificate, report, statement or other document referred
        to
        or provided for in, or received by the Agent under or in connection with,
        this
        Agreement or for the value, validity, effectiveness, genuineness, enforceability
        or sufficiency of this Agreement, the Notes or the other Loan Documents or
        for
        any failure of the Borrowers (or any of them) to perform their obligations
        hereunder or thereunder. The Agent shall not be under any obligation to any
        Bank
        to ascertain or to inquire as to the observance or performance of any of
        the
        agreements contained in, or conditions of, this Agreement or the other Loan
        Documents, or to inspect the properties, books or records of the Borrowers
        (or
        any of them).

       

      8.4  Reliance
        by Agent.

       

      The
        Agent
        shall be entitled to rely, and shall be fully protected in relying, upon
        any
        Note, writing, resolution, notice, consent, certificate, affidavit, letter,
        cablegram, telegram, facsimile, facsimile, telex or teletype message, statement,
        order or other document or conversation believed by it to be genuine and
        correct
        and to have been signed, 

       

       

      
        
          
          

        

        
          61

          
            

          

        

        
          
          

        

      

       

      sent
        or
        made by the proper Person or Persons and upon advice and statements of legal
        counsel (including, without limitation, counsel to one or more of the
        Borrowers), independent accountants and other experts selected by such Agent.
        The Agent may deem and treat the payee of any Note as the owner thereof for
        all
        purposes unless a written notice of assignment, negotiation or transfer thereof
        shall have been filed with the Agent. The Agent shall be fully justified
        in
        failing or refusing to take any action under this Agreement or the other
        Loan
        Documents unless it shall first receive such advice or concurrence of the
        Required Banks as it deems appropriate or it shall first be indemnified to
        its
        satisfaction by the Banks against any and all liability and expense which
        may be
        incurred by it by reason of taking or continuing to take any such action.
        The
        Agent shall in all cases be fully protected in acting, or in refraining from
        acting, under this Agreement, the Notes or the other Loan Documents in
        accordance with a request of the Required Banks, and such request and any
        action
        taken or failure to act pursuant thereto shall be binding upon all the Banks
        and
        all future holders of the Notes.

       

      8.5  Notice
        of Default.

       

      The
        Agent
        shall not be deemed to have knowledge or notice of the occurrence of any
        Default
        or Event of Default hereunder unless it has received notice from a Bank or
        a
        Borrower referring to this Agreement, describing such Default or Event of
        Default and stating that such notice is a “notice of default”. In the event that
        the Agent receives such a notice, the Agent shall promptly give notice thereof
        to the Banks. The Agent shall take such action with respect to such Default
        or
        Event of Default as shall be reasonably directed by the Required Banks;
        provided, that unless and until the Agent shall have received such directions,
        it may (but shall not be obligated to) take such action, or refrain from
        taking
        such action, with respect to such Default or Event of Default as it shall
        deem
        advisable in the best interests of the Banks.

       

      8.6  Non-Reliance
        on Agent and Other Banks.

       

      Each
        Bank
        expressly acknowledges that neither the Agent nor any of its respective
        officers, directors, employees, agents, attorneys-in-fact or Affiliates has
        made
        any representations or warranties to it and that no act by the Agent hereinafter
        taken, including any review of the affairs of the Borrowers, shall be deemed
        to
        constitute any representation or warranty by the Agent to any Bank. Each
        Bank
        represents to the Agent that it has, independently and without reliance upon
        the
        Agent or any other Bank, and based on such documents and information as it
        has
        deemed appropriate, made its own appraisal of and investigation into the
        business, operations, property, financial and other condition and
        creditworthiness of the Borrowers and made its own decision to make its Loans
        hereunder and enter into this Agreement and each other Loan Document to which
        it
        is a party. Each Bank also represents that it will, independently and without
        reliance upon the Agent or any other Bank, and based on such documents and
        information as it shall deem appropriate at the time, continue to make its
        own
        credit analysis, appraisals and decisions in taking or not taking action
        under
        this Agreement and the other Loan Documents, and to make such investigation
        as
        it deems necessary to inform itself as to the business, operations, property,
        financial and other condition and creditworthiness of the Borrowers. Except
        for
        notices, reports and other documents expressly required to be furnished to
        the
        Banks by the Agent hereunder, the Agent shall not have any duty or
        responsibility to provide any Bank with any credit or other information
        concerning the business, operations, property, condition (financial or
        otherwise), prospects or creditworthiness of the Borrowers which may come
        into
        the possession of the Agent or any of its officers, directors, employees,
        agents, attorneys-in-fact or Affiliates.

       

       

      
        
          
          

        

        
          62

          
            

          

        

        
          
          

        

      

       

      8.7  Indemnification.

       

      The
        Banks
        agree to indemnify the Agent in its capacity as such (to the extent not
        reimbursed by the Borrowers and without limiting the obligation, if any,
        of the
        Borrowers to do so), ratably according to their respective Commitment
        Percentages, from and against any and all liabilities, obligations, losses,
        damages, penalties, actions, judgments, suits, costs, expenses or disbursements
        of any kind whatsoever which may at any time (including, without limitation,
        at
        any time following the payment of the Notes) be imposed on, incurred by or
        asserted against the Agent in any way relating to or arising out of this
        Agreement, the other Loan Documents, or any documents contemplated by or
        referred to herein or therein or the transactions contemplated hereby or
        thereby
        or any action taken or omitted by the Agent under or in connection with any
        of
        the foregoing; provided, that no Bank shall be liable for the payment of
        any
        portion of such liabilities, obligations, losses, damages, penalties, actions,
        judgments, suits, costs, expenses or disbursements resulting solely from
        the
        Agent’s gross negligence or willful misconduct. The agreements in this Section
        8.7 shall survive the payment of the Notes and all other amounts payable
        hereunder.

       

      8.8  Agent
        in Its Individual Capacity.

       

      The
        Agent
        and its Affiliates may make loans to, accept deposits from and generally
        engage
        in any kind of business with the Borrowers (or any of them) as though the
        Agent
        were not the Agent hereunder. With respect to its Loans made or renewed by
        it
        and any Note issued to it and with respect to any Letter of Credit issued
        or
        participated in by it, the Agent shall have the same rights and powers under
        this Agreement and the other Loan Documents as any Bank and may exercise
        the
        same as though it were not the Agent, and the terms “Bank” and “Banks” shall
        include the Agent in its individual capacity.

       

      8.9  Successor
        Agent.

       

      The
        Agent
        may resign as Agent upon 30 days’ notice to the Banks and the Borrowers. If the
        Agent shall resign as Agent under this Agreement, then the Required Banks
        shall
        appoint from among the Banks a successor agent for the Banks, which appointment
        shall be subject to the approval of the Borrowers (which approval shall not
        be
        unreasonably withheld and shall not be required if there shall then exist
        a
        Default or Event of Default) and such successor agent. If no successor agent
        shall have been so appointed by the Required Banks and shall have accepted
        such
        appointment within 60 days after the retiring Agent’s giving of notice of
        resignation then the retiring Agent may, on behalf of the Banks, appoint
        an
        interim successor agent. Any interim successor agent appointed under the
        preceding sentence may be replaced at any time by a successor agent designated
        by the Required Banks and subject to the approval of the Borrowers (which
        approval shall not be unreasonably withheld and shall not be required if
        there
        shall then exist a Default or Event of Default). Any such successor agent
        shall
        succeed to the rights, powers and duties of the Agent, and the term “Agent”
shall mean such successor agent effective upon its appointment, and the former
        Agent’s rights, powers and duties as Agent shall be terminated, without any
        other or further act or deed on the part of such former Agent or any of the
        parties to this Agreement or any holders of the Notes. After any retiring
        Agent’s resignation as Agent, the provisions of this Section 8.9 shall inure to
        its benefit as to any actions taken or omitted to be taken by it while it
        was
        Agent under this Agreement.

       

      8.10  Beneficiaries.

       

      Except
        as
        expressly provided herein, the provisions of this Section 8 are solely for
        the
        benefit of the Agent and the Banks, and the Borrowers shall not have any
        rights
        to rely on or enforce any of the provisions hereof. In performing its functions
        and duties under this Agreement and the other Loan Documents, the Agent shall
        act solely as agent 

       

       

      
        
          
          

        

        
          63

          
            

          

        

        
          
          

        

      

       

      of
        the
        Banks and does not assume and shall not be deemed to have assumed any obligation
        toward or relationship of agency or trust with or for the
        Borrowers.

       

       

      SECTION
        9.   MISCELLANEOUS

       

      9.1  Amendments
        and Waivers.

       

      Neither
        this Agreement, any Note, any other Loan Document, nor any terms hereof or
        thereof may be amended, supplemented or modified except in accordance with
        the
        provisions of this Section. With the written consent of the Required Banks,
        the
        Agent and the Borrowers may, from time to time, enter into written amendments
        (including letter amendments), supplements or modifications hereto and to
        the
        Notes and the other Loan Documents for the purpose of adding any provisions
        to
        this Agreement, the Notes or any other Loan Document or changing in any manner
        the rights of the Banks or of the Borrowers hereunder or thereunder or waiving,
        on such terms and conditions as the Agent may specify in such instrument,
        any of
        the requirements of this Agreement, the Notes or any other Loan Document
        or any
        Default or Event of Default and its consequences; provided, however, that
        no
        such waiver and no such amendment, supplement or modification shall directly
        or
        indirectly (a) reduce the amount or extend the maturity of any Note or any
        installment thereof, or reduce the rate of interest or extend the time of
        payment of interest thereon, or reduce any fee payable to any Bank hereunder
        or
        extend the period for payment thereof, or change the duration or the amount
        of
        any Bank’s Commitment Percentage in each case without the consent of the Bank
        affected thereby or (b) or amend, modify or waive any provision of this
        Section or reduce the percentage specified in the definition of Required
        Banks,
        or consent to the assignment or transfer by the Borrowers of any of their
        rights
        and obligations under this Agreement, the Notes and the other Loan Documents,
        in
        each case without the written consent of all the Banks, or (c) amend, modify
        or
        waive any provision of Section 2.3 or any other provision affecting Swing
        Line
        Loans without the written consent of the then Swing Line Bank, or (d) amend,
        modify or waive any provision of Section 2.8 or any other provisions affecting
        Letters of Credit without the written consent of the Issuing Bank, or (e)
        amend,
        modify or waive any provision of Section 8 without the written consent of
        the
        then Agent. Any such waiver and any such amendment, supplement or modification
        shall apply equally to each of the Banks and shall be binding upon the
        Borrowers, the Banks, the Agent and all future holders of the Notes. In the
        case
        of any waiver, the Borrowers, the Banks and the Agent shall be restored to
        their
        former position and rights hereunder and under the outstanding Notes, and
        any
        Default or Event of Default waived shall be deemed to be cured and not
        continuing; but no such waiver shall extend to any subsequent or other Default
        or Event of Default, or impair any right consequent thereon.

       

      9.2  Notices;
        Lending Offices.

       

      All
        notices, requests and demands to or upon the respective parties hereto to
        be
        effective shall be in writing (including electronic transmission, facsimile
        transmission or posting on a secured Web site), and, unless otherwise expressly
        provided herein, shall be deemed to have been duly given or made when delivered
        by hand, or three days after being deposited in the mail, postage prepaid,
        or,
        in the case of facsimile transmission notice, when sent during normal business
        hours with electronic confirmation or otherwise when received, or in the
        case of
        electronic transmission, when received and in the case of posting on a secured
        Web site, upon receipt of (i) notice of such posting and (ii) rights to access
        such Web site, addressed as follows in the case of the Borrowers, and the
        Agent,
        the Swing Line Bank or the Issuing Bank, and as set forth in Schedule I in
        the
        case of the other 

       

       

      
        
          
          

        

        
          64

          
            

          

        

        
          
          

        

      

       

      parties
        hereto, or to such other address as may be hereafter notified by the respective
        parties hereto and any future holders of the Notes:

       

      
        	
                If
                  to the Borrowers, to the Borrowers’ Representative:

              	
                Tasty
                  Baking Company

              
	 	
                2801
                  Hunting Park Avenue

              
	 	
                Philadelphia,
                  PA 19129

              
	 	
                Attention:
                  Eugene P. Malinowski, Treasurer

              
	 	
                Facsimile:
                  (215) 225-2511

              
	 	 
	
                with
                  copies to:

              	
                Tastykake
                  Investment Company

                Suite
                  200

                103
                  Foulk Road

                Wilmington,
                  DE 19803

                Attention:
                  Andrew T. Panaccione

                Facsimile:
                  (302) 652-8667

                and

              
	 	
                Tasty
                  Baking Company

              
	 	
                2801
                  Hunting Park Avenue

              
	 	
                Philadelphia,
                  PA 19129

              
	 	
                Attention:
                  Norma Carter, Esq.

              
	 	
                Facsimile:
                  (215) 225-2511

              
	 	 
	
                The
                  Agent, the Swing Line Bank or the Issuing Bank:

              	
                PNC
                  Bank, National Association

              
	 	
                1000
                  Westlakes Drive, Suite 200

              
	 	
                Berwyn,
                  PA 19312

              
	 	
                Attention:
                  Forrest B. Patterson, Jr.

              
	 	
                Facsimile:
                  (610) 725-5799

              
	 	 
	
                with
                  a copy to:

              	
                PNC
                  Bank, National Association

              
	 	
                Agency
                  Services

              
	 	
                PNC
                  Firstside Center, 4th
                  Floor

              
	 	
                500
                  First Avenue

              
	 	
                Pittsburgh,
                  PA 15219

              
	 	
                Attention:
                  Lisa Pierce

              
	 	
                Facsimile:
                  (412) 762-8672

              
	 	 

      

      provided
        that (a)
        any notice, request or demand to or upon the Agent, the Issuing Bank or the
        Banks pursuant to Sections 2.2, 2.3, 2.4, 2.8, 2.14 and 2.15 or to or upon
        the
        Swing Line Bank, shall not be effective until received and (b) any notice
        of a
        Default or Event of Default hereunder shall be sent by facsimile or nationally
        recognized overnight courier. Schedule I lists the Lending Offices of each
        Bank.
        Each Bank may change its Lending Office by written notice to the other parties
        hereto.

       

      9.3  No
        Waiver; Cumulative Remedies.

       

      No
        failure to exercise and no delay in exercising, on the part of the Agent
        or any
        Bank, any right, remedy, power or privilege hereunder 

       

       

      
        
          
          

        

        
          65

          
            

          

        

        
          
          

        

      

       

      shall
        operate as a waiver thereof; nor shall any single or partial exercise of
        any
        right, remedy, power or privilege hereunder preclude any other or further
        exercise thereof or the exercise of any other right, remedy, power or privilege.
        The rights, remedies, powers and privileges herein provided are cumulative
        and
        not exclusive of any rights, remedies, powers and privileges provided by
        law.

       

      9.4  Survival
        of Representations and Warranties.

       

      All
        representations and warranties made hereunder and in any document, certificate
        or statement delivered pursuant hereto or in connection herewith shall survive
        the execution and delivery of this Agreement, the Notes and the other Loan
        Documents.

       

      9.5  Payment
        of Expenses and Taxes.

       

      Each
        of
        the Borrowers jointly and severally agrees (a) to pay or reimburse the Agent
        and
        each of the Banks for all its out-of-pocket costs and expenses incurred in
        connection with the development, preparation and execution of, and the
        syndication of, this Agreement, the Notes, the other Loan Documents and any
        other documents executed and delivered in connection herewith, and the
        consummation of the transactions contemplated hereby and thereby, including,
        without limitation, the reasonable fees and disbursements of counsel to the
        Agent, (b) to pay or reimburse the Agent and each of the Banks for all its
        out-of-pocket costs and expenses incurred in connection with any amendment,
        supplement or modification to this Agreement, the Notes and the other Loan
        Documents and any other documents executed and delivered in connection
        therewith, and the administration of the Revolver Facility, including without
        limitation, the reasonable fees and disbursements of counsel, (c) pay or
        reimburse the Bank and each Agent for all its costs and expenses incurred
        in
        connection with the enforcement or preservation of any rights under this
        Agreement, the Notes, the other Loan Documents and any such other documents,
        including, without limitation, reasonable fees and disbursements of counsel
        to
        the Agent and to the several Banks, (d) to pay, indemnify, and hold each
        Bank
        and the Agent harmless from, any and all recording and filing fees and any
        and
        all liabilities with respect to, or resulting from any delay in paying, stamp,
        excise and other taxes, if any, which may be payable or determined to be
        payable
        in connection with the execution and delivery of, or consummation of any
        of the
        transactions contemplated by, or any amendment, supplement or modification
        of,
        or any waiver or consent under or in respect of, this Agreement, the Notes,
        the
        other Loan Documents and any such other documents, and (e) to pay, indemnify,
        and hold each Bank and the Agent harmless from and against any and all other
        liabilities, obligations, losses, damages, penalties, actions (whether sounding
        in contract, in tort or on any other ground), judgments, suits, costs, expenses
        including, without limitation, reasonable attorneys’ fees or disbursements of
        any kind or nature whatsoever with respect to the execution, delivery,
        enforcement, performance and administration of or in any other way arising
        out
        of or relating to, this Agreement, the Notes, the other Loan Documents or
        any
        such other documents contemplated by or referred to herein or therein or
        any
        action taken by any Bank or the Agent with respect to the foregoing including,
        without limitation, any of the foregoing relating to the use of proceeds
        of the
        Loans or the violation of, noncompliance with or liability under, any
        Environmental Laws applicable to the operations of the Borrowers or their
        Subsidiaries (all the foregoing, collectively, the “indemnified liabilities”),
        provided, that the Borrowers shall have no obligation hereunder to the Agent
        or
        any Bank with respect to indemnified liabilities arising from the gross
        negligence or willful misconduct of such person. The agreements in this Section
        shall survive repayment of the Notes and all other amounts payable
        hereunder.

       

       

      
        
          
          

        

        
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      9.6  Successors
        and Assigns.

       

      (a)  Whenever
        in this Agreement any of the parties hereto is referred to, such reference
        shall
        be deemed to include the successors and permitted assigns of such party;
        and all
        covenants, promises and agreements by or on behalf of a Borrower, the Agent
        or
        the Banks that are contained in this Agreement shall bind and inure to the
        benefit of their respective successors and assigns. The Borrowers may not
        assign
        or transfer any of their rights or obligations under this Agreement or the
        other
        Loan Documents without the prior written consent of each Bank.

       

      (b)  Each
        Bank
        may, in accordance with applicable law, sell to any Bank or Affiliate thereof
        and, with the consent of the Company (which consent will not be required
        if an
        Event of Default has occurred or is continuing) and the Agent (which consents
        shall not be unreasonably withheld), to one or more banks or other financial
        institutions (each, a “Purchasing
        Bank”)
        all or
        any part of its interests, rights and obligations under this Agreement, the
        Notes and the other Loan Documents (including all or a portion of its Revolver
        Commitment and Swing Line Commitment and the Loans at the time owing to it
        and
        the Notes held by it); provided,
        however,
        that
        (i) so long as the Commitments are in effect, such assignment shall be in
        an
        amount not less than the lesser of all such Bank’s interests, rights and
        obligations under this Agreement or $5,000,000 (or such lesser amount as
        the
        Company and the Agent shall agree in their reasonable discretion), (ii) the
        parties to each such assignment shall execute and deliver to the Agent and
        the
        Company for its acceptance an Assignment and Acceptance, together with the
        Notes
        subject to such assignment and a processing and recordation fee of $3,000,
        (iii)
        unless otherwise agreed by the Agent and the Company in their reasonable
        discretion and provided no Event of Default has occurred and is continuing
        such
        assignment shall be of all or the same pro rata
        portion
        of all of such assigning Bank’s Revolver Commitment hereunder and (iv) the Swing
        Line Commitment and all outstanding Swing Line Loans may only be assigned
        in
        their entirety to a Bank then having a Revolver Commitment. Upon acceptance
        and
        recording pursuant to paragraph (e) of this Section 9.6, from and after the
        effective date specified in each Assignment and Acceptance, which effective
        date
        shall be at least five Business Days after the execution thereof, (A) such
        Purchasing Bank shall be a party hereto and, to the extent of the interest
        assigned by such Assignment and Acceptance, have the rights and obligations
        of a
        Bank under this Agreement and (B) the assigning Bank thereunder shall, to
        the
        extent of the interest assigned by such Assignment and Acceptance, be released
        from its obligations under this Agreement (and, in the case of an Assignment
        and
        Acceptance covering all or the remaining portion of an assigning Bank’s rights
        and obligations under this Agreement and the other Loan Documents, such Bank
        shall cease to be a party hereto but shall continue to be entitled to the
        benefits of Sections 2.13, 2.16, 2.17, 2.18, 5.8(c) and 9.5 (to the extent
        that
        such Bank’s entitlement to such benefits arose out of such Bank’s position as a
        Bank prior to the applicable assignment). Such Assignment and Acceptance
        shall
        be deemed to amend this Agreement to the extent, and only to the extent,
        necessary to reflect the addition of such Purchasing Bank and the resulting
        amounts and percentages held by the Banks arising from the purchase by such
        Purchasing Bank of all or a portion of the rights and obligations of such
        assigning Bank under this Agreement, the Notes and the other Loan Documents.
        Notwithstanding any provision of this Section 9.6, the consent of the Company
        shall not be required for any assignment which occurs at any time when an
        Event
        of Default shall have occurred and be continuing.

       

       

      
        
          
          

        

        
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      (c)  By
        executing and delivering an Assignment and Acceptance, the assigning Bank
        thereunder and the Purchasing Bank thereunder shall be deemed to confirm
        to and
        agree with each other and the other parties hereto as follows: (i) such
        assigning Bank warrants that it is the legal and beneficial owner of the
        interest being assigned thereby, free and clear of any adverse claim and
        that
        its Revolver Commitment and Swing Line Commitment, and the outstanding balances
        of its Loans, without giving effect to assignments thereof which have not
        become
        effective, are as set forth in such Assignment and Acceptance, (ii) except
        as
        set forth in (i) above, such assigning Bank makes no representation or warranty
        and assumes no responsibility with respect to any statements, warranties
        or
        representations made in or in connection with this Agreement or the other
        Loan
        Documents, or the execution, legality, validity, enforceability, genuineness,
        sufficiency or value of this Agreement, the other Loan Documents or any other
        instrument or document furnished pursuant hereto or thereto, or the financial
        condition of the Borrowers or the performance or observance by the Borrowers
        of
        any of its or their obligations under this Agreement or the other Loan Documents
        or any other instrument or document furnished pursuant hereto or thereto;
        (iii)
        such Purchasing Bank represents and warrants that it is legally authorized
        to
        enter into such Assignment and Acceptance; (iv) such Purchasing Bank confirms
        that it has received a copy of this Agreement, together with copies of the
        most
        recent financial statements delivered pursuant to Section 5.1 and such other
        documents and information as it has deemed appropriate to make its own credit
        analysis and decision to enter into such Assignment and Acceptance; (v) such
        Purchasing Bank will independently and without reliance upon the Agent, such
        assigning Bank or any other Bank and based on such documents and information
        as
        it shall deem appropriate at the time, continue to make its own credit decisions
        in taking or not taking action under this Agreement and the other Loan
        Documents; (vi) such Purchasing Bank appoints and authorizes the Agent to
        take
        such action as agent on its behalf and to exercise such powers under this
        Agreement and the other Loan Documents as are delegated to the Agent by the
        terms hereof or thereof, together with such powers as are reasonably incidental
        thereto; and (vii) such Purchasing Bank agrees that it will perform in
        accordance with their terms all the obligations which by the terms of this
        Agreement and the other Loan Documents are required to be performed by it
        as a
        Bank including, if it is organized under the laws of a jurisdiction outside
        the
        United States, its obligation pursuant to Section 2.17 to deliver the forms
        prescribed by the Internal Revenue Service of the United States certifying
        as to
        the Purchasing Bank’s exemption from United States withholding taxes with
        respect to all payments to be made to the Purchasing Bank under this
        Agreement.

       

      (d)  The
        Agent
        shall maintain at one of its offices in Pennsylvania a copy of each Assignment
        and Acceptance and the names and addresses of the Banks, and the Revolver
        Commitments and Swing Line Commitments of, and principal amount of the Loans
        owing to, each Bank pursuant to the terms hereof from time to time. Such
        information maintained by the Agent shall be conclusive in the absence of
        manifest error and the Borrowers, the Agent and the Banks may treat each
        Person
        whose name is recorded pursuant to the terms hereof as a Bank hereunder for
        all
        purposes of this Agreement.

       

      (e)  Upon
        its
        receipt of a duly completed Assignment and Acceptance executed by an assigning
        Bank and a Purchasing Bank (and in the case of a Purchasing Bank that is
        not
        then a Bank or an Affiliate thereof, by the Company and the Agent) together
        with
        the Note or Notes subject to such assignment and the processing and recordation
        fee referred to in 

       

       

      
        
          
          

        

        
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      paragraph
        (b) above, the Agent shall promptly (i) accept such Assignment and
        Acceptance, (ii) record the information contained therein and (iii) give
        notice
        thereof to the Banks. Within five Business Days after receipt of notice,
        the
        Borrowers shall execute and deliver to the Agent, in exchange for the surrender
        of the original Note(s) (A) with respect to the assignment of Loans of any
        Bank,
        a new Note to the order of such Purchasing Bank in an amount equal to the
        amount
        of each applicable commitment assumed and (B) if the assigning Bank has retained
        a Revolver Commitment, a new Note or Notes to the order of such assignor
        in the
        amount equal to each applicable Revolver Commitment retained by it. Such
        new
        Notes shall be in an aggregate principal amount equal to the aggregate principal
        amount of such surrendered Note(s); such new Notes shall be dated the date
        of
        the surrendered Notes which they replace and shall otherwise be in substantially
        the form of Exhibit A-1,
        or, in
        the case of the Swing Line Bank only, Exhibit A-2
        hereto,
        as applicable. Canceled Notes shall be returned to the Company.

       

      (f)  Each
        Bank
        may without the consent of the Company or the Agent sell participations to
        one
        or more banks or other entities (each a “Participant”)
        in any
        Loan owing to such Bank, any Note held by such Bank, any Revolver Commitment
        and
        Swing Line Commitment of such Bank or any other interest of such Bank hereunder
        and under the other Loan Documents, provided,
        however,
        that
        (i) such Bank’s obligations under this Agreement to the other parties to this
        Agreement shall remain unchanged, (ii) such Bank shall remain solely responsible
        to the other parties hereto for the performance of such obligations, (iii)
        such
        Bank shall remain the holder of any such Note for all purposes under this
        Agreement and the other Loan Documents, (iv) the Borrowers, the Banks and
        the
        Agent shall continue to deal solely and directly with such Bank in connection
        with such Bank’s rights and obligations under this Agreement and the other Loan
        Documents, (v) in any proceeding under the Bankruptcy Code such Bank shall
        be,
        to the extent permitted by law, the sole representative with respect to the
        obligations held in the name of such Bank, whether for its own account or
        for
        the account of any Participant and , (vi) such Bank shall retain the sole
        right
        to approve, without the consent of any Participant, any amendment, modification
        or waiver of any provision of this Agreement or the Note or Notes held by
        such
        Bank or any other Loan Document, other than any such amendment, modification
        or
        waiver with respect to any Loan or Revolver Commitment or Swing Line Commitment
        in which such Participant has an interest that changes the principal amount
        of
        any Loans or Revolver Commitment or Swing Line Commitment, forgives principal,
        interest or fees or reduces the interest rate or fees payable with respect
        to
        any such Loan or Commitment, postpones any date fixed for any regularly
        scheduled payment of principal of, or interest or fees on, any such Loan
        or
        releases any guarantor of such Loan.

       

      (g)  If
        amounts outstanding under this Agreement and the Notes are due or unpaid,
        or
        shall have been declared or shall have become due and payable upon the
        occurrence of an Event of Default, each Participant shall be deemed to have
        the
        right of set-off in respect of its participating interest in amounts owing
        under
        this Agreement and any Note to the same extent as if the amount of its
        participating interest were owing directly to it as a Bank under this Agreement
        or any Note, provided
        that in
        purchasing such participation such Participant shall be deemed to have agreed
        to
        share with the Banks the proceeds thereof as provided in Section 9.8. The
        Borrowers also agree that each Participant shall be entitled to the benefits
        of
        Sections 2.13, 2.16, 2.17, 2.18, 5.8(c) and 9.5 with respect to its
        participation in the Revolver Commitments and Swing Line Commitments and
        the
        Loans outstanding from time to time; provided,
        that no
        Participant shall be entitled to receive any greater amount pursuant to such
        

       

       

      
        
          
          

        

        
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      Sections
        than the assigning Bank would have been entitled to receive in respect of
        the
        amount of the participation transferred by such assigning Bank to such
        Participant had no such transfer occurred.

       

      (h)  If
        any
        Participant of a Bank is organized under the laws of any jurisdiction other
        than
        the United States or any state thereof, the assigning Bank, concurrently
        with
        the sale of a participating interest to such Participant, shall cause such
        Participant (i) to represent to the assigning Bank (for the benefit of the
        assigning Bank, the other Banks, the Agent and the Borrowers) that under
        applicable law and treaties no taxes will be required to be withheld by the
        Agent, the Borrowers or the assigning Bank with respect to any payments to
        be
        made to such Participant in respect of its participation in the Loans and
        (ii)
        to agree (for the benefit of the assigning Bank, the other Banks, the Agent
        and
        the Borrowers) that it will deliver the tax forms and other documents required
        to be delivered pursuant to subsection 2.17 and comply from time to time
        with
        all applicable U.S. laws and regulations with respect to withholding tax
        exemptions.

       

      (i)  Any
        Bank
        may at any time assign all or any portion of its rights under this Agreement
        and
        the Notes issued to it to a Federal Reserve Bank; provided
        that no
        such assignment shall release a Bank from any of its obligations
        hereunder.

       

      (j)  Upon
        the
        effective date of a New Bank Joinder, each bank or other financial institution
        becoming a party to this Agreement pursuant to subsection 2.14(d) hereof
        (each a
“New
        Bank”)
        shall
        be a party hereto and shall be one of the Banks hereunder for all purposes.
        On
        the effective date of such joinder and/or any increase in the Revolver
        Commitment of any existing Bank pursuant to subsection 2.14(d), the Borrowers
        shall repay all outstanding Revolving Loans (together with any amounts due
        under
        Section 2.18 as a result of such payment) and reborrow a like amount of
        Revolving Loans from the Banks, including each New Bank, according to their
        new
        Commitment Percentages.

       

      9.7  Disclosure
        of Information.

       

      Unless
        otherwise consented to by the Company in writing, each of the Banks and the
        Agent agrees to use reasonable precautions to keep confidential, in accordance
        with its customary procedures for handling confidential information of the
        same
        nature and in accordance with safe and sound banking practices, any non-public
        information supplied to it by the Borrowers pursuant to this Agreement; provided
        that nothing herein shall limit the disclosure of any such information (a)
        to
        the extent required by statute, rule, regulation or judicial process, (b)
        to
        counsel for any Bank or the Agent, (c) to bank examiners, auditors or
        accountants, (d) to the Agent or any other Bank, (e) in connection with any
        litigation to which any one or more of the Banks or the Agent is a party
        and (f)
        to any Participant or Purchasing Bank (or prospective Participant or Purchasing
        Bank) so long as such Participant or Purchasing Bank (or prospective Participant
        or Purchasing Bank) agrees to comply with the requirements of this section.
        If
        the Agent or any of the Banks believes it is obligated to disclose with respect
        to the Borrowers any non-public information and is not precluded by law or
        judicial order from doing so, it shall give notice thereof to the Borrowers
        as
        far in advance of the anticipated disclosure as is reasonably practicable
        under
        the circumstances in order to allow the Borrowers the opportunity to seek
        an
        appropriate protective order, should they so desire. Notwithstanding anything
        herein to the contrary, the information subject to this Section 9.7 shall
        not
        include, and the Agent and each Bank may disclose without limitation of any
        kind, any information with respect to the “tax treatment” and “tax structure”
(in each case, within the 

       

       

      
        
          
          

        

        
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      meaning
        of Treasury Regulation Section 1.6011-4) of the transactions contemplated
        hereby
        and all materials of any kind (including opinions or other tax analyses)
        that
        are provided to the Agent or such Bank relating to such tax treatment tax
        structure; provided that with respect to any document or similar item that
        in
        either case contains information concerning the tax treatment or tax structure
        of the transaction as well as other information, this sentence shall only
        apply
        to such portions of the document or similar item that relate to the tax
        treatment or tax structure of the Loans, Letters of Credit and transactions
        contemplated hereby.

       

      9.8  Adjustments;
        Set-off.

       

      (a)  If
        any
        Bank (a “benefited
        Bank”)
        shall
        at any time receive any payment of all or part of its Loans or the Reimbursement
        Obligations owing to it, or interest thereon, or receive any collateral in
        respect thereof (whether voluntarily or involuntarily, by set-off, pursuant
        to
        events or proceedings of the nature referred to in subsection 7.1(f), or
        otherwise), in a greater proportion than its Commitment Percentage of any
        such
        payment to or collateral received by any other Bank, if any, in respect of
        such
        other Bank’s Loans or the Reimbursement Obligations owing to it, or interest
        thereon, such benefited Bank shall purchase for cash from the other Banks
        such
        portion of each such other Bank’s Loans owing to it, or shall provide such other
        Banks with the benefits of any such collateral, or the proceeds thereof,
        as
        shall be necessary to cause such benefited Bank to share the excess payment
        or
        benefits of such collateral or proceeds ratably with each of the Banks;
        provided, however, that if all or any portion of such excess payment or benefits
        is thereafter recovered from such benefited Bank, such purchase shall be
        rescinded, and the purchase price and benefits returned, to the extent of
        such
        recovery, but without interest unless the benefited Bank is required to pay
        interest thereon, in which case each Bank returning funds to the benefited
        Bank
        shall pay its pro rata share of such interest. Each of the Borrowers, jointly
        and severally agrees that each Bank so purchasing a portion of another Bank’s
        Loans may exercise all rights of payment (including, without limitation,
        rights
        of set-off) with respect to such portion as fully as if such Bank were the
        direct holder of such portion.

       

      (b)  In
        addition to any rights and remedies of the Banks provided by law, upon the
        occurrence and during the continuance of an Event of Default, each Bank shall
        have the right, without prior notice to the Borrowers (or any of them), any
        such
        notice being expressly waived by the Borrowers to the extent permitted by
        applicable law, upon any amount becoming due and payable by the Borrowers
        hereunder or under the Notes (whether at the stated maturity, by acceleration
        or
        otherwise) to set-off and appropriate and apply against such amount any and
        all
        deposits (general or special, time or demand, provisional or final), in any
        currency, and any other credits, indebtedness or claims, in any currency,
        in
        each case whether direct or indirect, absolute or contingent, matured or
        unmatured, at any time held or owing by such Bank to or for the credit or
        the
        account of one or more Borrowers. Each Bank agrees promptly to notify the
        Company and the Agent after any such set-off and application made by such
        Bank,
provided
        that the
        failure to give such notice shall not affect the validity of such set-off
        and
        application.

       

      9.9  Counterparts.

       

      This
        Agreement may be executed by one or more of the parties to this Agreement
        on any
        number of separate counterparts, and all of said counterparts taken together
        shall be deemed to constitute one and the same instrument. A set of the copies
        

       

       

      
        
          
          

        

        
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      of
        this
        Agreement signed by all the parties shall be lodged with the Company, on
        behalf
        of the Borrowers, and each of the Banks.

       

      9.10  Severability.

       

      Any
        provision of this Agreement which is 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.

       

      9.11  Integration.

       

      This
        Agreement and the other Loan Documents represent the agreement of the parties
        hereto with respect to the subject matter hereof, and there are no promises,
        undertakings, representations or warranties by the Agent or any Bank relative
        to
        the subject matter hereof not expressly set forth or referred to herein or
        in
        the other Loan Documents.

       

      9.12  GOVERNING
        LAW.

       

      THIS
        AGREEMENT AND THE NOTES AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER
        THIS
        AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
        IN
        ACCORDANCE WITH, THE LAW OF THE COMMONWEALTH OF PENNSYLVANIA WITHOUT REGARD
        TO
        CONFLICTS OF LAWS PRINCIPLES.

       

      9.13  Submission
        To Jurisdiction; Waivers.

       

      Each
        of
        the Borrowers hereby irrevocably and unconditionally:

       

      (a)  submits
        for itself and its property in any legal action or proceeding relating to
        this
        Agreement or the Notes, or for recognition and enforcement of any judgment
        in
        respect thereof, to the non-exclusive general jurisdiction of the Courts
        of the
        Commonwealth of Pennsylvania, the courts of the United States of America
        for the
        Eastern District of Pennsylvania, and appellate courts from any
        thereof;

       

      (b)  consents
        that any such action or proceeding may be brought in such courts and waives
        any
        objection that it may now or hereafter have to the venue of any such action
        or
        proceeding in any such court or that such action or proceeding was brought
        in an
        inconvenient court and agrees not to plead or claim the same;

       

      (c)  agrees
        that service of process in any such action or proceeding may be effected
        by
        mailing a copy thereof by registered or certified mail (or any substantially
        similar form of mail), postage prepaid, to the Company at its address set
        forth
        in Section 9.2 or at such other address of which the Agent shall have been
        notified pursuant thereto;

       

      (d)  agrees
        that nothing herein shall affect the right to effect service of process in
        any
        other manner permitted by law or shall limit the right to sue in any other
        jurisdiction; and

       

      (e)  waives,
        to the maximum extent not prohibited by law, any right it may have to claim
        or
        recover in any legal action or proceeding referred to in this Section any
        special, exemplary, punitive or consequential damages.

       

       

       

      
        
          
          

        

        
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      9.14  Acknowledgments.

       

      .
        Each of
        Borrowers hereby acknowledges that:

       

      (a)  it
        has
        been advised by counsel in the negotiation, execution and delivery of this
        Agreement, the Notes and the other Loan Documents;

       

      (b)  neither
        the Agent nor any Bank has any fiduciary relationship to the Borrowers (or
        any
        of them) and the relationship hereunder between the Agent and Banks, on the
        one
        hand, and the Borrowers, on the other hand, is solely that of debtor and
        creditor; and

       

      (c)  no
        joint
        venture exists among the Banks or among the Borrowers (or any of them) and
        the
        Banks.

       

      9.15  No
        Right of Contribution.

       

      On
        and
        after the occurrence of an Event of Default hereunder, no Borrower shall
        seek or
        be entitled to any reimbursement from any other Borrower, or be subrogated
        to
        any rights of the Banks against the Borrowers, in respect of any payments
        made
        pursuant to the Loan Documents, until all amounts owing to the Banks hereunder
        and under the Notes are paid in full.

       

      9.16  WAIVERS
        OF JURY TRIAL.

       

      EACH
        OF
        THE BORROWERS, THE AGENT AND THE BANKS HEREBY IRREVOCABLY AND UNCONDITIONALLY
        WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS
        AGREEMENT, THE NOTES OR ANY OTHER LOAN DOCUMENT AND FOR ANY MANDATORY
        COUNTERCLAIM THEREIN.

       

      

       

      
        
          
             

          

          
          

        

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

       

      

      TASTY
        BAKING COMPANY

      

      

      By:  /s/
        David S. Marberger      

      David
        S.
        Marberger

      Senior
        Vice President

      

      

      TASTYKAKE
        INVESTMENT COMPANY

      

      

      By: 
        /s/ Eugene P. Malinowski       

      Eugene
        P.
        Malinowski

      Treasurer

      

      

      TBC
        FINANCIAL SERVICES, INC.

      

      

      By: 
        /s/ Eugene P. Malinowski       

      Eugene
        P.
        Malinowski

      Treasurer

      

      

      TASTY
        BAKING OXFORD, INC.

      

      

      By: 
        /s/ Eugene P. Malinowski       

      Eugene
        P.
        Malinowski

      Treasurer

      

      

      
        
           

           

          
          

        

        
          74

          
            

          

        

        
          
          

        

      

      PNC
        BANK, NATIONAL ASSOCIATION,

      as
        a
        Bank, as Swing Line Bank, as Issuing Bank and as Agent

      

      

      By:      
        /s/ Forrest B. Patterson, Jr.      

      Forrest
        B. Patterson, Jr.

      Senior
        Vice President

      

      

      CITIZENS
        BANK OF PENNSYLVANIA, as
        a
        Bank

      

      

      By:      
        /s/ Mark Bomberger      

      Mark
        Bomberger

      Senior
        Vice President

      

      

      
        
          
             

          

          
          

        

        
          75

          
            

          

        

        
          
          

          
            

          

        

      

      SCHEDULE
        I

       

      BANKS
        AND COMMITMENT INFORMATION

       

      

      

        

        

        
          
            	
                    Bank
                      and Lending Office(s)

                  	
                    Commitments

                  	 
	 	 	 
	 	
                    Revolver

                  	
                    Swing
                      Line*

                  
	 	 	 
	
                    PNC
                      Bank, National Association

                  	
                    $19,687,500

                  	
                    $10,000,000

                  
	
                    1000
                      Westlakes Drive, Suite 200

                  	 	 
	
                    Berwyn,
                      PA 19312

                  	 	 
	
                    Attn:
                      Forrest B. Patterson

                  	 	 
	
                    Telecopy:
                      (610) 725-5799

                  	 	 
	 	 	 
	
                    Citizens
                      Bank of Pennsylvania

                  	
                    $15,312,500

                  	
                    0

                  
	
                    2001
                      Market Street, Suite 600

                  	 	 
	
                    Philadelphia,
                      PA 19103

                  	 	 
	
                    Mark
                      A. Bomberger

                  	 	 
	
                    Telecopy:
                      (215) 751-1516

                  	 	 
	 	 	 
	
                    Commitments

                  	
                    $35,000,000

                  	
                    $10,000,000

                  
	 	 	 

          

      

      *Swing
        Line Commitment is a sublimit of the Revolver Commitment

      
        
          
            Schedule
              1-1

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

      SCHEDULE
        II

       

      PERMITTED
        LIENS

       None.

      

      

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

      SCHEDULE
        1.1

       

      EXISTING
        LETTERS OF CREDIT

      

      

      
        	
                L/C
                  No.

              	
                Face
                  Amount

              	
                Expiry
                  Date

              	
                Beneficiary

              
	
                LC#
                  245987 

              	
                $925,000.00
                  

              	
                Expiry
                  Date 6/30/06 

              	
                Atlantic
                  Mutual Insurance Co.

              
	
                LC#
                  245988 

              	
                $1,200,000.00
                  

              	
                Expiry
                  Date 6/30/06 

              	
                Pacific
                  Employers Insurance Co.

              
	
                LC#
                  259881 

              	
                $1,350,000.00
                  

              	
                Expiry
                  Date 6/30/06 

              	
                Companion
                  Insurance Company

              

      

      

      

      

      

      

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

      SCHEDULE
        3.2

       

      No
        Change. 

      Except
        as
        disclosed in the Company’s 2004 Form 10K for the fiscal year ending December 25,
        2004 with respect to the class-action litigation discussed in Item
        3. Legal Proceedings
        and
        Footnote no. 7 Commitments
        and Contingencies,
        the
        Company has not experienced any development or event nor any prospective
        development or event which has had or could reasonably be expected to have
        a
        Material Adverse Effect as defined in the Amended and Restated Credit Agreement
        dated September 13, 2005.

       

       

       

      

        
          
            
               

            

            
            

          

          
            
            

            
              

            

          

          
            
            

            
              

            

          

        

      SCHEDULE
        6.4

       

      OTHER
        PERMITTED INDEBTEDNESS

      

      None. 

      

      

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

      

       

      AMENDED
        AND RESTATED CREDIT AGREEMENT

       

      

       

      among

       

      

       

      TASTY
        BAKING COMPANY

       

      

       

      and

       

      Its
        Subsidiaries,

       

      as
        Borrowers,

       

      

       

      The
        Several Lenders From Time to Time

       

      Parties
        Hereto

       

      

       

      and

       

      

       

      PNC
        BANK, NATIONAL ASSOCIATION,

       

      as
        Agent

       

      

       

      Dated
        as of September 13, 2005

       

      

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

      TABLE
        OF CONTENTS

       

      

        
          
            	 	Page 
	
                    SECTION
                      1. DEFINITIONS 

                  	
                    1

                  
	
                    1.1

                  	
                    Defined
                      Terms

                  	
                    1

                  
	
                    1.2

                  	
                    Other
                      Definitional Provisions

                  	
                    20

                  
	
                    SECTION
                      2. LOANS AND TERMS OF COMMITMENTS 

                  	
                    20

                  
	
                    2.1

                  	
                    The
                      Loans

                  	
                    20

                  
	
                    2.2

                  	
                    Procedure
                      for Revolving Loans

                  	
                    21

                  
	
                    2.3

                  	
                    Swing
                      Line Loans

                  	
                    22

                  
	
                    2.4

                  	
                    Conversion
                      and Continuation Options

                  	
                    24

                  
	
                    2.5

                  	
                    Nature
                      of Banks’ Obligations with Respect to Loans

                  	
                    25

                  
	
                    2.6

                  	
                    Notes

                  	
                    25

                  
	
                    2.7

                  	
                    Fees

                  	
                    26

                  
	
                    2.8

                  	
                    Letter
                      of Credit Subfacility

                  	
                    27

                  
	
                    2.9

                  	
                    Interest
                      Rates and Payment Dates

                  	
                    32

                  
	
                    2.10

                  	
                    Default
                      Interest

                  	
                    33

                  
	
                    2.11

                  	
                    Pro
                      Rata Treatment of Loans and Payments; Commitment Fees

                  	
                    33

                  
	
                    2.12

                  	
                    Payments

                  	
                    33

                  
	
                    2.13

                  	
                    LIBOR
                      Rate Unascertainable; Illegality; Increased Costs; Deposits
                      Not
                      Available

                  	
                    34

                  
	
                    2.14

                  	
                    Termination,
                      Reduction and Increase of Commitments

                  	
                    35

                  
	
                    2.15

                  	
                    Prepayment
                      of Loans

                  	
                    36

                  
	
                    2.16

                  	
                    Requirements
                      of Law

                  	
                    37

                  
	
                    2.17

                  	
                    Taxes

                  	
                    39

                  
	
                    2.18

                  	
                    Indemnity

                  	
                    40

                  
	
                    2.19

                  	
                    Intentionally
                      Omitted

                  	
                    41

                  
	
                    2.20

                  	
                    Borrowers’
                      Representative

                  	
                    41

                  
	
                    SECTION
                      3. REPRESENTATIONS AND WARRANTIES 

                  	
                    41

                  
	
                    3.1

                  	
                    Financial
                      Condition

                  	
                    41

                  
	
                    3.2

                  	
                    No
                      Change

                  	
                    42

                  
	
                    3.3

                  	
                    Corporate
                      Existence; Compliance with Law

                  	
                    42

                  
	
                    3.4

                  	
                    Corporate
                      Power; Authorization; Enforceable Obligations

                  	
                    42

                  
	
                    3.5

                  	
                    No
                      Legal Bar

                  	
                    43

                  
	
                    3.6

                  	
                    No
                      Material Litigation

                  	
                    43

                  
	
                    3.7

                  	
                    No
                      Default

                  	
                    43

                  
	
                    3.8

                  	
                    Taxes

                  	
                    43

                  
	
                    3.9

                  	
                    Federal
                      Regulations

                  	
                    43

                  
	
                    3.10

                  	
                    ERISA

                  	
                    43

                  
	
                    3.11

                  	
                    Investment
                      Company Act

                  	
                    44

                  

          

           

           

           

          
            
              
              

            

            
              i

              
                

              

            

            
              
              

            

          

           

          
            
              	
                      3.12

                    	
                      Public
                        Utility Holding Company Act

                    	
                      44

                    
	
                      3.13

                    	
                      Environmental
                        Matters

                    	
                      44

                    
	
                      3.14

                    	
                      No
                        Material Misstatements

                    	
                      45

                    
	
                      3.15

                    	
                      Title
                        to Properties

                    	
                      46

                    
	
                      3.16

                    	
                      Intellectual
                        Property

                    	
                      46

                    
	
                      3.17

                    	
                      No
                        Burdensome Restrictions; List of Subsidiaries

                    	
                      46

                    
	
                      3.18

                    	
                      Solvency

                    	
                      46

                    
	
                      3.19

                    	
                      Insurance

                    	
                      47

                    
	
                      3.20

                    	
                      Anti-Terrorism
                        Laws

                    	
                      47

                    
	
                      SECTION
                        4. CONDITIONS PRECEDENT 

                    	
                      48

                    
	
                      4.1

                    	
                      Conditions
                        to Effectiveness

                    	
                      48

                    
	
                      4.2

                    	
                      Conditions
                        to Each Extension of Credit

                    	
                      49

                    
	
                      4.3

                    	
                      Effective
                        Date; Transitional Arrangements

                    	
                      50

                    
	
                      SECTION
                        5. AFFIRMATIVE COVENANTS 

                    	
                      51

                    
	
                      5.1

                    	
                      Financial
                        Statements

                    	
                      51

                    
	
                      5.2

                    	
                      Certificates;
                        Other Information

                    	
                      51

                    
	
                      5.3

                    	
                      Payment
                        of Obligations

                    	
                      52

                    
	
                      5.4

                    	
                      Maintenance
                        of Existence

                    	
                      52

                    
	
                      5.5

                    	
                      Maintenance
                        of Insurance; Property

                    	
                      52

                    
	
                      5.6

                    	
                      Inspection
                        of Property; Books and Records; Discussions

                    	
                      53

                    
	
                      5.7

                    	
                      Notices

                    	
                      53

                    
	
                      5.8

                    	
                      Environmental
                        Laws

                    	
                      53

                    
	
                      5.9

                    	
                      Notice
                        and Joinder of New Subsidiaries

                    	
                      54

                    
	
                      5.10

                    	
                      Use
                        of Proceeds

                    	
                      54

                    
	
                      5.11

                    	
                      Tax
                        Shelter Regulations

                    	
                      54

                    
	
                      5.12

                    	
                      Anti-Terrorism
                        Laws

                    	
                      54

                    
	
                      SECTION
                        6. NEGATIVE COVENANTS 

                    	
                      55

                    
	
                      6.1

                    	
                      Financial
                        Condition Covenants

                    	
                      55

                    
	
                      6.2

                    	
                      Limitation
                        on Liens

                    	
                      55

                    
	
                      6.3

                    	
                      Limitations
                        on Fundamental Changes

                    	
                      55

                    
	
                      6.4

                    	
                      Limitation
                        on Indebtedness

                    	
                      56

                    
	
                      6.5

                    	
                      Limitation
                        on Sale of Assets

                    	
                      56

                    
	
                      6.6

                    	
                      Transactions
                        with Affiliates

                    	
                      56

                    
	
                      6.7

                    	
                      Sale
                        and Leaseback

                    	
                      57

                    
	
                      6.8

                    	
                      Limitation
                        on Acquisitions, Investments, Loans and Advances

                    	
                      57

                    
	
                      6.9

                    	
                      No
                        Negative Pledge

                    	
                      57

                    
	
                      6.10

                    	
                      Fiscal
                        Year

                    	
                      57

                    
	
                      6.11

                    	
                      Limitation
                        on Conduct of Business

                    	
                      57

                    
	
                      6.12

                    	
                      Capital
                        Expenditures

                    	
                      57

                    
	
                      SECTION
                        7. EVENTS OF DEFAULT 

                    	
                      58

                    
	
                      7.1

                    	
                      Events
                        of Default

                    	
                      58

                    

            

             

             

            
              
                
                

              

              
                ii

                
                  

                

              

              
                
                

              

            

             

            
              	
                      SECTION
                        8. THE AGENT 

                    	
                      61

                    
	
                      8.1

                    	
                      Appointment

                    	
                      61

                    
	
                      8.2

                    	
                      Delegation
                        of Duties

                    	
                      61

                    
	
                      8.3

                    	
                      Exculpatory
                        Provisions

                    	
                      61

                    
	
                      8.4

                    	
                      Reliance
                        by Agent

                    	
                      61

                    
	
                      8.5

                    	
                      Notice
                        of Default

                    	
                      62

                    
	
                      8.6

                    	
                      Non
                        Reliance on Agent and Other Banks

                    	
                      62

                    
	
                      8.7

                    	
                      Indemnification

                    	
                      63

                    
	
                      8.8

                    	
                      Agent
                        in Its Individual Capacity

                    	
                      63

                    
	
                      8.9

                    	
                      Successor
                        Agent

                    	
                      63

                    
	
                      8.10

                    	
                      Beneficiaries

                    	
                      63

                    
	
                      SECTION
                        9. MISCELLANEOUS 

                    	
                      64

                    
	
                      9.1

                    	
                      Amendments
                        and Waivers

                    	
                      64

                    
	
                      9.2

                    	
                      Notices;
                        Lending Offices

                    	
                      64

                    
	
                      9.3

                    	
                      No
                        Waiver; Cumulative Remedies

                    	
                      65

                    
	
                      9.4

                    	
                      Survival
                        of Representations and Warranties

                    	
                      66

                    
	
                      9.5

                    	
                      Payment
                        of Expenses and Taxes

                    	
                      66

                    
	
                      9.6

                    	
                      Successors
                        and Assigns

                    	
                      67

                    
	
                      9.7

                    	
                      Disclosure
                        of Information

                    	
                      70

                    
	
                      9.8

                    	
                      Adjustments;
                        Set off

                    	
                      71

                    
	
                      9.9

                    	
                      Counterparts

                    	
                      71

                    
	
                      9.10

                    	
                      Severability

                    	
                      72

                    
	
                      9.11

                    	
                      Integration

                    	
                      72

                    
	
                      9.12

                    	
                      GOVERNING
                        LAW

                    	
                      72

                    
	
                      9.13

                    	
                      Submission
                        To Jurisdiction; Waivers

                    	
                      72

                    
	
                      9.14

                    	
                      Acknowledgments

                    	
                      73

                    
	
                      9.15

                    	
                      No
                        Right of Contribution

                    	
                      73

                    
	
                      9.16

                    	
                      WAIVERS
                        OF JURY TRIAL

                    	
                      73

                    

            

          

        

      

       

      
        
           

           

          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

      
         

        

          SCHEDULES

          

          
            	
                    SCHEDULE
                      I

                  	
                    Bank
                      and Commitment Information

                  
	
                    SCHEDULE
                      II

                  	
                    Existing
                      Liens

                  
	
                    SCHEDULE
                      1.1

                  	
                    Existing
                      Letters of Credit

                  
	
                    SCHEDULE
                      3.2

                  	
                    No
                      Change

                  
	
                    SCHEDULE
                      6.4

                  	
                    Existing
                      Indebtedness

                  
	 	 
	
                    EXHIBITS

                  	 
	 	 
	
                    EXHIBIT
                      A-1

                  	
                    Form
                      of Revolver Note

                  
	
                    EXHIBIT
                      A-2

                  	
                    Form
                      of Swing Line Note

                  
	
                    EXHIBIT
                      B

                  	
                    Form
                      of Assignment and Acceptance Agreement

                  
	
                    EXHIBIT
                      C

                  	
                    Form
                      of Notice of Borrowing

                  
	
                    EXHIBIT
                      D

                  	
                    Form
                      of Joinder and Assumption Agreement

                  
	
                    EXHIBIT
                      E

                  	
                    Form
                      of Increased Commitment and Acceptance

                  
	
                    EXHIBIT
                      F

                  	
                    Form
                      of New Bank Joinder

                  
	
                    EXHIBIT
                      G

                  	
                    Form
                      of Intercreditor Agreement

                  

          

        

      

    

     

     

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

     

    

      REVOLVER
        NOTE 

       

      
         

        
          	
                  $19,687,500

                   

                	
                  September
                    13, 2005

                   

                

        

        

         

      

      FOR
        VALUE
        RECEIVED, TASTY BAKING COMPANY, and its direct and indirect subsidiaries
        party
        hereto listed on the signature page hereof (collectively, the “Borrowers”),
        hereby unconditionally, jointly and severally, promise to pay to the order
        of
        PNC BANK, NATIONAL ASSOCIATION (the “Bank”) at the office of PNC BANK, NATIONAL
        ASSOCIATION (the “Agent”) located at 500 First Avenue, Pittsburgh, PA 15219, on
        the Revolver Termination Date in immediately available funds NINETEEN MILLION
        SIX HUNDRED EIGHTY-SEVEN THOUSAND FIVE HUNDRED DOLLARS ($19,687,500), or
        such
        lesser amount as may be advanced for the benefit of the Borrowers hereunder
        prior to the Revolver Termination Date. In addition, the Borrowers shall
        make
        principal payments on this Note, to the extent required under the Credit
        Agreement (as defined below), on the dates specified in the Credit Agreement
        and
        in the amounts determined in accordance with the provisions thereof. The
        Borrowers further agree to pay interest accrued on the unpaid principal amount
        outstanding hereunder from time to time from the date hereof at such office
        at
        the rates and on the dates specified in the Credit Agreement, together with
        all
        other costs, fees and expenses as provided in the Credit Agreement.

       

      The
        holder of this Note is authorized to endorse on Schedule 1 annexed hereto
        and
        made a part hereof, or on a continuation thereof which shall be attached
        hereto
        and made a part hereof, the respective date, Type and amount of each Revolving
        Loan made by the Bank to the Borrowers, each continuation thereof, each
        conversion of all or a portion thereof to another Type, the date and amount
        of
        each payment and prepayment of the principal hereof and interest hereon and
        the
        respective dates thereof, and, in the case of LIBOR Loans, the length of
        each
        Interest Period with respect thereto, or to otherwise record such information
        on
        its internal records, and any such endorsement or recordation shall constitute
        prima
        facie
        evidence
        of the accuracy of the information so endorsed or recorded; provided,
        however,
        that the
        failure to make any such endorsement (or any error in such endorsement or
        recordation) shall not affect the obligations of the Borrowers to make payments
        of principal, interest and other amounts outstanding in accordance with the
        terms of this Note and the Credit Agreement.

       

      Capitalized
        terms used herein without definition shall have the meanings given in the
        Amended and Restated Credit Agreement, dated as of September 13, 2005, among
        the
        Borrowers, the Agent, and the Banks party thereto (as it may be amended,
        restated, supplemented or otherwise modified from time to time, the “Credit
        Agreement”). This Note is one of the Revolver Notes referred to in, evidences
        indebtedness incurred under, and is entitled to the benefits of, the Credit
        Agreement. The Credit Agreement, among other things, contains provisions
        for
        acceleration of the maturity hereof upon the happening of certain events,
        for
        optional or mandatory prepayments of the principal hereof prior to the maturity
        thereof, for a higher rate of interest hereunder on amounts past due and
        for the
        amendment or waiver of certain provisions of the Credit Agreement.

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      Upon
        the
        occurrence of any one or more of the Events of Default specified in the Credit
        Agreement, all amounts then remaining unpaid on this Note shall become, or
        may
        be declared to be, immediately due and payable, all as provided
        therein.

       

      All
        parties now and hereafter liable with respect to this Note, whether maker,
        principal, surety, guarantor, endorser or otherwise, hereby waive presentment,
        demand, protest and notice of any kind. No failure to exercise, and no delay
        in
        exercising, any rights hereunder on the part of the holder hereof shall operate
        as a waiver of such rights.

       

      Each
        of
        the Borrowers acknowledges that it has read and understood all the provisions
        of
        this Note and has been advised by counsel as necessary or
        appropriate.

       

      [Signature
        Page to Follow]

       

      
        
           

           

          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      WITNESS
        the due
        execution hereof as a document under seal, as of the date first written above,
        with the intent to be legally bound hereby.

       

      

       

      TASTY
        BAKING COMPANY

      

      

      By:   
        /s/ David S. Marberger

      David
        S.
        Marberger

      Senior
        Vice President

      

      TASTYKAKE
        INVESTMENT COMPANY

      

      

      By:   
        /s/ Eugene P. Malinowski

      Eugene
        P.
        Malinowski

      Treasurer

      

      TBC
        FINANCIAL SERVICES, INC.

      

      

      By:    
        /s/ Eugene P. Malinowski

      Eugene
        P.
        Malinowski

      Treasurer

      

      TASTY
        BAKING OXFORD, INC.

      

      

      By:    
        /s/ Eugene P. Malinowski

      Eugene
        P.
        Malinowski

      Treasurer

      

      
        
           

           

          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      Schedule
        1

       

      Loans,
        Conversions and Payments

       

      Schedule
        1

       

      Loans,
        Conversions and Payments

       

      
        	 	 	 	 	
                 Payments

              	 	 
	
                 

                 

                 

                Date

              	
                 

                 

                Amount

                of
                  Loan

              	
                 

                 

                Interest

                  Rate  

              	
                 

                 

                Interest

                  Period  

              	
                 

                 

                 

                Principal   
                  

              	
                 

                 

                 

                Interest

              	
                 

                Unpaid

                Balance
                  of

                   Note   

              	
                Name
                  of

                Person

                Making

                Notation

              
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

      

      

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    

     

    

      REVOLVER
        NOTE 

       

      

       

      
        	
                $15,312,500

              	
                September
                  13, 2005

              

      

       

       

      FOR
        VALUE
        RECEIVED, TASTY BAKING COMPANY, and its direct and indirect subsidiaries
        party
        hereto listed on the signature page hereof (collectively, the “Borrowers”),
        hereby unconditionally, jointly and severally, promise to pay to the order
        of
        CITIZENS BANK OF PENNSYLVANIA (the “Bank”) at the office of PNC BANK, NATIONAL
        ASSOCIATION (the “Agent”) located at 500 First Avenue, Pittsburgh, PA 15219, on
        the Revolver Termination Date in immediately available funds FIFTEEN MILLION
        THREE HUNDRED TWELVE THOUSAND FIVE HUNDRED DOLLARS ($15,312,500), or such
        lesser
        amount as may be advanced for the benefit of the Borrowers hereunder prior
        to
        the Revolver Termination Date. In addition, the Borrowers shall make principal
        payments on this Note, to the extent required under the Credit Agreement
        (as
        defined below), on the dates specified in the Credit Agreement and in the
        amounts determined in accordance with the provisions thereof. The Borrowers
        further agree to pay interest accrued on the unpaid principal amount outstanding
        hereunder from time to time from the date hereof at such office at the rates
        and
        on the dates specified in the Credit Agreement, together with all other costs,
        fees and expenses as provided in the Credit Agreement.

       

      The
        holder of this Note is authorized to endorse on Schedule 1 annexed hereto
        and
        made a part hereof, or on a continuation thereof which shall be attached
        hereto
        and made a part hereof, the respective date, Type and amount of each Revolving
        Loan made by the Bank to the Borrowers, each continuation thereof, each
        conversion of all or a portion thereof to another Type, the date and amount
        of
        each payment and prepayment of the principal hereof and interest hereon and
        the
        respective dates thereof, and, in the case of LIBOR Loans, the length of
        each
        Interest Period with respect thereto, or to otherwise record such information
        on
        its internal records, and any such endorsement or recordation shall constitute
        prima
        facie
        evidence
        of the accuracy of the information so endorsed or recorded; provided,
        however,
        that the
        failure to make any such endorsement (or any error in such endorsement or
        recordation) shall not affect the obligations of the Borrowers to make payments
        of principal, interest and other amounts outstanding in accordance with the
        terms of this Note and the Credit Agreement.

       

      Capitalized
        terms used herein without definition shall have the meanings given in the
        Amended and Restated Credit Agreement, dated as of September 13, 2005, among
        the
        Borrowers, the Agent, and the Banks party thereto (as it may be amended,
        restated, supplemented or otherwise modified from time to time, the “Credit
        Agreement”). This Note is one of the Revolver Notes referred to in, evidences
        indebtedness incurred under, and is entitled to the benefits of, the Credit
        Agreement. The Credit Agreement, among other things, contains provisions
        for
        acceleration of the maturity hereof upon the happening of certain events,
        for
        optional or mandatory prepayments of the principal hereof prior to the maturity
        thereof, for a higher rate of interest hereunder on amounts past due and
        for the
        amendment or waiver of certain provisions of the Credit Agreement.

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      Upon
        the
        occurrence of any one or more of the Events of Default specified in the Credit
        Agreement, all amounts then remaining unpaid on this Note shall become, or
        may
        be declared to be, immediately due and payable, all as provided
        therein.

       

      All
        parties now and hereafter liable with respect to this Note, whether maker,
        principal, surety, guarantor, endorser or otherwise, hereby waive presentment,
        demand, protest and notice of any kind. No failure to exercise, and no delay
        in
        exercising, any rights hereunder on the part of the holder hereof shall operate
        as a waiver of such rights.

       

      Each
        of
        the Borrowers acknowledges that it has read and understood all the provisions
        of
        this Note and has been advised by counsel as necessary or
        appropriate.

       

      

       

      [Signature
        Page to Follow]

       

      
        
           

           

          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      WITNESS
        the due
        execution hereof as a document under seal, as of the date first written above,
        with the intent to be legally bound hereby.

       

      TASTY
        BAKING COMPANY

      

      

      By: 
        /s/ David S. Marberger

      David
        S.
        Marberger

      Senior
        Vice President

      

      TASTYKAKE
        INVESTMENT COMPANY

      

      

      By:  
        /s/ Eugene P. Malinowski

      Eugene
        P.
        Malinowski

      Treasurer

      

      TBC
        FINANCIAL SERVICES, INC.

      

      

      By: 
        /s/ Eugene P. Malinowski

      Eugene
        P.
        Malinowski

      Treasurer

      

      TASTY
        BAKING OXFORD, INC.

      

      

      By:  
        /s/ Eugene P. Malinowski

      Eugene
        P.
        Malinowski

      Treasurer

      

      
        
           

           

          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      Schedule
        1

       

      Loans,
        Conversions and Payments

       

      Schedule
        1

       

      Loans,
        Conversions and Payments

       

      
         

        
          	 	 	 	 	
                   Payments

                	 	 
	
                   

                   

                   

                  Date

                	
                   

                   

                  Amount

                  of
                    Loan

                	
                   

                   

                  Interest

                    Rate  

                	
                   

                   

                  Interest

                    Period  

                	
                   

                   

                   

                  Principal   
                    

                	
                   

                   

                   

                  Interest

                	
                   

                  Unpaid

                  Balance
                    of

                     Note   

                	
                  Name
                    of

                  Person

                  Making

                  Notation

                
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

        

        

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

      

      

        SWING
          LINE NOTE

        

        

        
          	
                  $10,000,000

                	
                  September
                    13, 2005

                

        

        

        FOR
          VALUE
          RECEIVED, TASTY BAKING COMPANY, and its direct and indirect subsidiaries
          party
          hereto listed on the signature page hereof (collectively, the “Borrowers”),
          hereby unconditionally, jointly and severally, promise to pay to the order
          of
          PNC BANK, NATIONAL ASSOCIATION (the “Swing Line Bank”) at the office of PNC
          BANK, NATIONAL ASSOCIATION (the “Agent”) located at 500 First Avenue,
          Pittsburgh, PA 15219, in Dollars, the aggregate unpaid principal amount
          of all
          Swing Line Loans made by the Swing Line Bank to the Borrowers in accordance
          with
          the terms of the Credit Agreement (as defined below), in immediately available
          funds, and to pay interest from the date hereof on such principal amount
          from
          time to time outstanding, in like funds, at said office, at the rates per
          annum
          and payable on the dates specified in the Credit Agreement.

         

        The
          holder of this Note is authorized to endorse on Schedule I annexed hereto
          and
          made a part hereof, or on a continuation thereof which shall be attached
          hereto
          and made a part hereof, the respective date and amount of each Swing Line
          Loan
          made by the Swing Line Bank to the Borrowers and all payments and prepayments
          of
          the principal hereof and interest hereon and the respective dates thereof,
          or to
          otherwise record such information on its internal records, and any such
          endorsement or recordation shall constitute prima
          facie
          evidence
          of the accuracy of the information so endorsed or recorded; provided,
          however,
          that the
          failure to make any such endorsement or recordation (or any error in such
          endorsement or recordation) shall not affect the obligations of the Borrower
          to
          make payments of principal, interest and other amounts outstanding in accordance
          with the terms of this Note and the Credit Agreement.

         

        Capitalized
          terms used herein without definition shall have the meanings given in the
          Amended and Restated Credit Agreement, dated as of September 13, 2005,
          among the
          Borrowers, the Agent, the Swing Line Bank, and the Banks party thereto,
          and (as
          it may be amended, restated, supplemented or otherwise modified from time
          to
          time, the “Credit Agreement”). This Note is the Swing Line Note referred to in,
          evidences indebtedness incurred under, and is entitled to the benefits
          of, the
          Credit Agreement. The Credit Agreement, among other things, contains provisions
          for acceleration of the maturity hereof upon the happening of certain events,
          for optional or mandatory prepayments of the principal hereof prior to
          the
          maturity thereof, for a higher rate of interest hereunder on amounts past
          due
          and for the amendment or waiver of certain provisions of the Credit
          Agreement.

         

        Upon
          the
          occurrence of any one or more of the Events of Default specified in the
          Credit
          Agreement, all amounts then remaining unpaid on this Note shall become,
          or may
          be declared to be, immediately due and payable, all as provided
          therein.

         

        All
          parties now and hereafter liable with respect to this Note, whether maker,
          principal, surety, guarantor, endorser or otherwise, hereby waive presentment,
          demand, protest and notice of any kind. No failure to exercise, and no
          delay in
          exercising, any rights hereunder on the part of the holder hereof shall
          operate
          as a waiver of such rights. 

         

         

         

        
          
            
            

          

          
            1

            
              

            

          

          
            
            

          

        

         

        Each
          of
          the Borrowers acknowledges that it has read and understood all the provisions
          of
          this Note and has been advised by counsel as necessary or
          appropriate.

         

        [Signature
          Page to Follow]

         

        
          
            
               

            
            

          

          
            2

            
              

            

          

          
            
            

          

        

        WITNESS
          the due
          execution hereof as a document under seal, as of the date first written
          above,
          with the intent to be legally bound hereby.

         

        

        

        TASTY
          BAKING COMPANY

        

        

        By:
          /s/ David S. Marberger

        David
          S.
          Marberger

        Senior
          Vice President

        

        TASTYKAKE
          INVESTMENT COMPANY

        

        

        By:   
          /s/ Eugene P. Malinowski

        Eugene
          P.
          Malinowski

        Treasurer

        

        TBC
          FINANCIAL SERVICES, INC.

        

        

        By:  
          /s/ Eugene P. Malinowski

        Eugene
          P.
          Malinowski

        Treasurer

        

        TASTY
          BAKING OXFORD, INC.

        

        

        By: 
          /s/ Eugene P. Malinowski

        Eugene
          P.
          Malinowski

        Treasurer

        
          
             

            

            
            

          

          
            3

            
              

            

          

          
            
            

          

        

        Schedule
          1

         

        Loans,
          Conversions and Payments

         

        Schedule
          1

         

        Loans,
          Conversions and Payments

        
           

          
             

            
              	 	 	 	 	
                       Payments

                    	 	 
	
                       

                       

                       

                      Date

                    	
                       

                       

                      Amount

                      of
                        Loan

                    	
                       

                       

                      Interest

                        Rate  

                    	
                       

                       

                      Interest

                        Period  

                    	
                       

                       

                       

                      Principal   
                        

                    	
                       

                       

                       

                      Interest

                    	
                       

                      Unpaid

                      Balance
                        of

                         Note   

                    	
                      Name
                        of

                      Person

                      Making

                      Notation

                    
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

            

            

          

        

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

      

    

     

    

      

       

      

       

      INTERCREDITOR
        AGREEMENT

       

      Dated
        September 13, 2005

       

      TASTY
        BAKING COMPANY, as Borrowers’ Representative

       

      and

       

      PNC
        BANK, NATIONAL ASSOCIATION, as Agent

       

      and

       

      CITIZENS
        BANK OF PENNSYLVANIA

       

       

       

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

      

       

      INTERCREDITOR
        AGREEMENT

       

      Intercreditor
        Agreement dated as of September 13, 2005 among CITIZENS BANK OF PENNSYLVANIA
        (“CITIZENS”), PNC BANK, NATIONAL ASSOCIATION, as Agent for the Banks under the
        Credit Agreement (as such terms are hereinafter defined) (in such capacity
        , the
“Agent”), and TASTY BAKING COMPANY, on behalf of the Borrowers (as hereinafter
        defined), as the Borrowers’ Representative (as defined in the Credit Agreement
        referred to below) (the “Borrowers’ Representative”).

       

      

       

      BACKGROUND

       

      

       

      A.  Pursuant
        to an Amended and Restated Credit Agreement of even date herewith (the “Credit
        Agreement”) among the Borrowers’ Representative and its subsidiaries party
        thereto (collectively, the “Borrowers”), the several banks and other financial
        institutions parties thereto (the “Banks”) and the Agent, the Banks have
        extended to Borrowers certain unsecured revolving credit facilities in the
        aggregate maximum principal amount of $35,000,000 (the “Banks Commitment
        Amount”) evidenced by notes issued by the Borrowers to the Banks. The Credit
        Agreement, such notes and all documents and instruments executed in connection
        therewith are hereinafter collectively referred to as the “Banks Credit
        Agreements.”

       

      B.  Pursuant
        to a Loan Agreement of even date herewith (the “Loan Agreement”) between
        Citizens and the Borrowers, Citizens has agreed to make (i) an unsecured
        term
        loan in the principal amount equal to $5,300,000 on the date hereof (the
        “Initial Term Loan”), (ii) an unsecured term loan in the maximum principal
        amount of $2,550,000 on or before the Funding Expiration Date (as defined
        in the
        Loan Agreement) (the “Secondary Term Loan” and, together with the Initial Term
        Loan, the “Unsecured Term Loans”) and (iii) a secured mortgage term loan in the
        maximum principal amount of $2,150,000 on or before the Funding Expiration
        Date
        and secured by the Mortgage (as hereinafter defined) (the “Secured Term Loan”
and, together with the Unsecured Term Loans, the “Citizens Loans”). The Loan
        Agreement and all notes, documents and instruments executed in connection
        therewith are hereinafter collectively referred to as the “Citizens Credit
        Agreements”.

       

      C.  In
        anticipation of entering into the foregoing credit facilities, Citizens and
        the
        Agent, on behalf of the Banks, desire to coordinate and provide for the
        application of any amounts received from the Borrowers following a Foreclosure
        Event (as hereinafter defined), and the parties hereto have agreed to enter
        into
        this Intercreditor Agreement.

       

      
        
           

           

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AGREEMENT

       

      NOW,
        THEREFORE, in consideration of the premises and intending to be legally bound
        hereby, the parties hereto agree as follows:

       

      1.  DEFINITIONS

       

      In
        addition to the other terms defined in the Background recitals, the following
        terms shall have the meanings set forth:

       

      “Banks
        Obligations”
means
        all principal of and interest on and all other fees due from the Borrowers
        under
        any of the Banks Credit Agreements.

       

      “Citizens
        Obligations”
means
        all principal and interest and all other fees due from the Borrowers under
        any
        of the Citizens Credit Agreements.

       

      “Credit
        Documents”
means,
        collectively, the Banks Credit Agreements and the Citizens Credit
        Agreements.

       

      “Event
        of Default”
means
        either (i) an Event of Default (as defined in any of the Banks Credit
        Agreements) or (ii) an Event of Default (as defined in any of the Citizens
        Credit Agreements).

       

      “Foreclosure
        Event”
shall
        mean the determination by either Lender to enforce its remedies against the
        Borrowers and their respective assets either by enforcing its security interests
        or liens on such assets, by seeking a judgment against the Borrowers or
        otherwise, following the occurrence and during the continuation of an Event
        of
        Default.

       

      “Lenders”
means
        collectively, and “Lender”
means
        individually the Agent and Citizens, and their respective successors and
        permitted assigns. 

       

      “Mortgage”
means
        the mortgage granted to Citizens by the Borrower owning the Hunting Park
        Property (as defined in the Loan Agreement) as security for the Secured Term
        Loan.

       

      “Obligations”
means
        collectively the Banks Obligations and the Citizens Obligations.

       

      
        	2.  	
                NOTICE
                  OF FORECLOSURE EVENT; APPLICATION OF
                  PROCEEDS 

              

      

       

          

       

      A.  Each
        Lender shall notify the other Lender promptly of the occurrence of a Foreclosure
        Event with respect to Obligations held by it, or, in the case of the Agent,
        by
        the Banks.

       

      B.  In
        the
        event that a Lender has notified the other Lender that a Foreclosure Event
        has
        occurred and either Lender shall thereafter obtain payment of any amounts
        owing
        to it or, in the case of the Agent, to the Banks, on or in respect of any
        Obligations through exercise of 

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      a
        right
        of set-off, banker’s lien or counterclaim, from any realization (whether through
        enforcement of security interests or other liens, attachment or otherwise)
        on
        any assets of the Borrowers, or otherwise, such amounts shall be applied
        in the
        order set forth below (to the extent permitted by applicable law):

       

      i.  To
        the
        payment of all costs, expenses, liabilities and advances made or incurred
        by
        such Lender in connection with obtaining such payment (including reasonable
        fees
        of counsel).

       

      ii.  The
        remainder of such proceeds, if any, after the application of proceeds in
        accordance with the preceding clause i, realized from the Hunting Park Property,
        pursuant to Citizens’ enforcement of the Mortgage, to the payment of the
        Citizens Obligations attributable to the Secured Term Loan.

       

      iii.  The
        remainder of such proceeds, if any, after the application of proceeds in
        accordance with the preceding clauses i and ii, to the payment to the
        Lenders of the outstanding principal amount of Obligations which remain unpaid
        at such date, pro rata
        between
        the Lenders in accordance with the outstanding principal amount of such
        Obligations on such date. 

       

      iv.  The
        remainder of such proceeds, if any, after the application of proceeds in
        accordance with the preceding clauses i, ii and iii, to the payment to the
        Lenders of all other Obligations outstanding on such date, including, without
        limitation, interest, premium, if any, and fees, pro rata
        between
        the Lenders in accordance with the outstanding amount of such
        Obligations.

       

      v.  The
        remainder of such proceeds, if any, after the application of proceeds in
        accordance with the preceding clauses i, ii, iii and iv and payment in full
        of all Obligations, to the payment to the Borrowers, its successors or assigns,
        or otherwise as a court of competent jurisdiction may direct.

       

      Notwithstanding
        the foregoing, if a Lender triggers a Foreclosure Event (the “Foreclosing
        Lender”) and the other Lender thereafter fails promptly to trigger a Foreclosure
        Event and enforce its rights and remedies against the Borrowers and their
        respective assets, as applicable, any proceeds obtained by the Foreclosing
        Lender may be applied by the Foreclosing Lender solely to the Obligations
        owed
        to it. 

       

      
        	3.  	
                MODIFICATION
                  OF LOAN DOCUMENTS AND ASSIGNMENT OF
                  OBLIGATIONS

              

      

       

      The
        Lenders agree between themselves (but not with, or for the benefit of the
        Borrowers) that:

       

      A.  Anything
        contained in any Credit Document to the contrary notwithstanding, each Lender
        agrees that it will not agree or consent to any amendment or modification
        of any
        Credit Documents to which it is party which would (i) alter the scheduled
        maturity of the repayment of any amounts payable, or which might become payable,
        by or on behalf of the Borrowers under such Credit Documents, (ii) increase
        the
        Banks Commitment

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       Amount,
        or the Citizens Loans, as applicable, or (iii) grant security for the Banks
        Obligations or additional security for any of the Citizens Obligations, in
        each
        case without first obtaining the written consent of the other Lender to such
        amendment or modification or increase. Each Lender shall promptly notify
        the
        other Lender of any amendment to the Credit Documents and provide the other
        Lender with copies thereof.

       

      B.  Each
        Lender agrees that it will not assign or otherwise transfer any Obligation
        or
        any right in respect thereof, except where its assignee or transferee expressly
        agrees with the other Lender for the benefit of the other Lender by an
        instrument in form and substance satisfactory to the other Lender, to be
        bound
        by and comply with the provisions of this Agreement and of the agreement
        under
        which such Obligation was created. Nothing herein shall limit either Lender’s,
        or in the case of the Agent, any Bank’s right to participate interests in its
        Obligations or any Bank’s right to assign all or any portion of the Obligations
        due to it under the terms of the Credit Agreement subject in any case to
        the
        terms of this Agreement. The terms and provisions of this Agreement shall
        be
        binding upon each Lender’s successors and assigns, including any assignee of a
        Bank under the Credit Agreement. 

       

      4.  MISCELLANEOUS.

       

      A.  Each
        Lender acknowledges and agrees that it has made and shall continue to make
        its
        own independent investigation of the creditworthiness, financial condition
        and
        affairs of the Borrowers and related entities in connection with the making
        and
        continuance of its extensions of credit, and that based upon such documents
        and
        information as it has deemed and may deem appropriate, it has made and shall
        continue to make its own decisions regarding extensions of credit made or
        to be
        made by it and actions taken or to be taken by it with respect
        thereto.

       

      B.  This
        Agreement is solely for the benefit of the Lenders and their respective
        successors and assigns, and neither the Borrowers nor their respective
        successors or assigns, or any other person, shall have any right, benefit,
        priority or interest under, or because of the existence of, this
        Agreement.

       

      C.  All
        notices, requests and demands will be given to or made upon the respective
        parties hereto at their respective addresses specified on the signature page
        of
        this Agreement, or as to any party, at such other address as may be designated
        by it in a written notice to all other parties. Written notice may be delivered
        by hand or by recognized overnight delivery service, sent by certified mail,
        return receipt requested, or by facsimile transmission, and unless otherwise
        specified herein, notice shall be deemed effective when delivered if delivered
        by hand or by recognized overnight delivery service or sent by facsimile
        transmission, and five (5) days following the date such notice is duly deposited
        in the mail if sent by mail.

       

      D.  This
        Agreement may be executed in any number of counterparts, all of which taken
        together shall constitute one and the same instrument, and any party hereto
        may
        execute this Agreement by signing any such counterpart.

       

      E.  This
        Agreement shall be construed in accordance with and governed by the laws
        of the
        Commonwealth of Pennsylvania.

       

      

       

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

      IN
        WITNESS WHEREOF, each of the undersigned has caused this Agreement to be
        duly
        executed as of the date first above written.

       

      CITIZENS
        BANK OF PENNSYLVANIA

      

      

      By:      

      Name:      

      Title:      

      

      Address
        for Notices to PNC:

      Two
        Commerce Square

      2001
        Market Street, 6th Floor

      Philadelphia,
        PA 19103-7053 

      Attention:
        Mark A. Bomberger

      

      PNC
        BANK, NATIONAL ASSOCIATION,
        as
        Agent

      

      By:      

      Name:      

      Title:      

      

      Address
        for Notices to Agent

      

      Agency
        Services

      PNC
        Firstside Center

      500
        First
        Avenue, 4th
        Floor

      Pittsburgh,
        PA 15219

      Attention:
        Lisa Pierce

      

      with
        a
        copy to:

      

      1000
        Westlakes Drive, Suite 200

      Mail
        Stop
        F4-F074-02-1

      Berwyn,
        PA 19312

      Attention:
        Forrest B. Patterson, Jr.

      

      

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

      

      TASTY
        BAKING COMPANY,
        as the
        Borrowers’ Representative

      

      By:    
        /s/ David S. Marberger     

      David
        S.
        Marberger

      Senior
        Vice President

      

      Address
        for Notices to Borrower:

      2801
        Hunting Park Avenue

      Philadelphia,
        PA 19129-1306

      Attention:
        Eugene MalinowskiExhibit 10.2

    
      	
              Loan Agreement

            	 

    

    

    This
      Loan
      Agreement (the “Agreement”) is entered into as of September 13, 2005, among
      Tasty Baking Company, Tastykake Investment Company, TBC Financial Services,
      Inc.
      and Tasty Baking Oxford, Inc. (each a “Borrower” and, collectively, the
“Borrowers”), with an address 2801 Hunting Park Avenue, Philadelphia, PA
      19129-1306 and Citizens Bank of Pennsylvania, a Pennsylvania state chartered
      bank (“Bank”) with an address at 2001 Market Street, Suite 600, Philadelphia, PA
      19103.

     

    BACKGROUND

     

    WHEREAS,
      the
      Borrowers, the lenders from time to time party thereto (the “Syndicate Lenders”)
      and PNC Bank, National Association, as agent for the Syndicate Lenders, are
      party to an Amended and Restated Credit Agreement dated as of the date hereof
      (as amended, supplemented or otherwise modified from time to time, the “Credit
      Agreement”) pursuant to which the Syndicate Lenders have agreed to make
      Revolving Loans (as defined in the Credit Agreement) to the Borrowers in an
      aggregate principal amount not to exceed $35,000,000.

     

    WHEREAS,
      the
      Borrowers have requested Bank to make additional extensions of credit to the
      Borrowers upon the following terms and conditions in order for the Borrowers
      to
      (i) make a contribution to the Tasty Banking Company pension plan (the “Pension
      Contribution”) and (ii) finance the purchase price of the real property located
      at 2801 Hunting Park Avenue, Philadelphia, PA 19129-1306 (the “Hunting Park
      Property”) in the event that one of the Borrowers elects to purchase the Hunting
      Park Property.

     

    NOW,
      THEREFORE, in
      consideration of the promises and the agreements hereinafter set forth, and
      intending to be legally bound hereby, the parties hereto agree as
      follows:

     

    1.  Borrowings.
      The
      Borrowers have requested and Bank has made or shall make one or more of the
      following term loans (collectively, the “Borrowings”) to the Borrowers subject
      to the terms and conditions and in reliance upon the representations and
      warranties of the Borrowers set forth in this Agreement:

     

    (a)  Facility
      #1.
      The
      first credit facility is a term loan in the aggregate principal amount of
      $5,300,000 (the “Intitial Term Loan”) to be advanced to the Borrowers on the
      date hereof. The obligation of the Borrowers to repay the Term Loan shall be
      evidenced by a term note of Borrowers dated as of the date hereof (the “Initial
      Term Note”). The proceeds of the Initial Term Loan will be used by the Borrowers
      to finance the Pension Contribution.

     

    (b)  Facility
      #2.
      The
      second credit facility is a term loan in the aggregate principal amount of
      $2,550,000 (the “Secondary Term Loan”) which will be loaned in one advance,
      subject to the terms hereof, upon the Borrowers’ request, provided that the
      Borrowers may not request, and Bank shall not be obligated to make such
      Secondary Term Loan after December 31, 2005 (the “Funding Expiration Date”). The
      obligation of the Borrowers to repay the Secondary Term Loan, if made, shall
      be
      evidenced by a term note of the Borrowers dated as of the date such Secondary
      Term Loan is made and in the form attached hereto as Exhibit A (the “Secondary
      Term Note”). The Secondary Term Loan, if made, will be used by the Borrowers to
      finance a portion of the purchase price of the Hunting Park
      Property.

     

    (c)  Facility
      #3.
      The
      third credit facility is a term loan in the aggregate principal amount of
      $2,150,000 (the “Mortgage Term Loan”) to the Borrowers which will be loaned in
      one advance, subject to the terms hereof, upon the Borrowers’ request, provided
      that, the Borrowers may not request, and Bank shall not be obligated to make
      such Mortgage Term Loan after the Funding Expiration Date. The obligation of
      the
      Borrowers to repay the Mortgage Term Loan shall be evidenced by a term note
      of
      the Borrowers dated as of the date such Secondary Term Loan is made and in
      the
      form attached hereto as Exhibit B (the “Mortgage Term Note”). The proceeds of
      the Mortgage Term Loan, if made, will be used by the Borrowers to finance a
      portion of the purchase price of the Hunting Park Property. 

     

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    The
      Initial Term Note, the Secondary Term Note and the Mortgage Term Note (each
      a
“Note” and, collectively, the “Notes”) and renewals, extensions, amendments and
      restatements thereof acceptable to Bank, shall set forth the interest rate,
      repayment and other provisions, the terms of which are incorporated into this
      Agreement by reference. 

     

    2.  Security.  The
      security for repayment of the obligations arising from the Mortgage Term Loan,
      if made, shall be that certain mortgage, in the form attached hereto as Exhibit
      C, granted by the applicable Borrower in favor of Bank encumbering the Hunting
      Park Property (the “Mortgage” and, together with this Agreement, the Notes and
      any documents executed in connection with such documents, the “Loan
      Documents”).

     

    3.  Representations
      and Warranties.
      Each
      Borrower hereby makes the following representations and warranties which shall
      be true and correct on the date hereof and shall continue to be true and correct
      at the time of the creation of any of the Borrowings and until the Borrowings
      shall have been paid in full:

     

    (a)  Organization.
      Each
      Borrower is duly organized, validly existing, and in good standing under the
      laws of the jurisdiction in which such Borrower is incorporated or organized,
      and each Borrower has the power and authority to own its properties and assets,
      to carry on its businesses as now being conducted and is qualified to do
      business in every jurisdiction in which it is required to qualify to do
      business, except to the extent that its failure have such power, authority
      or
      legal right or to qualify to do business could not in the aggregate, reasonably
      be expected to have a Material Adverse Effect (as defined in the Credit
      Agreement as of the date hereof).

     

    (b)  Validity
      and Binding Nature.
      Each
      Borrower has the power to execute, deliver, and perform this Agreement, the
      Notes, the Mortgage and any other Loan Documents, as the case may be; and when
      executed and delivered the Loan Documents will be valid and binding obligations
      of each Borrower, enforceable in accordance with their terms; provided, however,
      that this representation with respect to enforceability is limited by
      bankruptcy, insolvency, or other laws of general application relating to or
      affecting the enforcement of creditors’ rights.

     

    (c)  Due
      Authorization.
      The
      execution, delivery and performance of the Loan Documents, have been duly
      authorized by all necessary action required for the lawful creation and issuance
      of the Loan Documents and do not violate any provisions of law, regulation,
      any
      order of any court or governmental agency, the charter documents, by-laws or
      other organizational documents of any Borrower.

     

    (d)  Conflicting
      Instruments.
      The
      execution, delivery and performance of the Loan Documents do not violate any
      provisions of any indenture, agreement, or other instrument to which a Borrower
      or any Borrower’s properties or assets are bound, and will not be in conflict
      with, result in a breach of, or constitute (with due notice and/or lapse of
      time) a default under any such indenture, agreement, or other instrument, or
      result in the creation or imposition of any lien, charge, or encumbrance of
      any
      nature whatsoever upon any of the properties or assets of such
      Borrower.

     

    (e)  Authorization
      and Consents.
      To each
      Borrower’s knowledge, no authorization, consent, approval, license or exemption
      of, and no registration, qualification, designation, declaration or filing
      with
      any court or governmental department, commission, board, bureau, agency or
      instrumentality, domestic or foreign is necessary to the valid execution and
      delivery of this Agreement, the Notes or any other Loan Documents.

     

    (f)  Incorporation
      by Reference of Representations and Warranties.
      To the
      extent not specifically addressed in this Section 3, the text contained in
      Section 3 “Representations and Warranties” of the Credit Agreement is hereby
      incorporated by reference in this Section 3 (the “Incorporated Representations”)
      substituting, as appropriate, for references to “Agent or “Bank” therein a
      reference to “Bank” as herein defined. All capitalized terms used directly or
      indirectly in the representations and warranties incorporated herein by
      reference and defined in the Credit Agreement are hereby incorporated by
      reference in this Agreement for the purpose of giving the same meaning to the
      Incorporated Representations herein as are given to such Incorporated
      Representations in the Credit Agreement. In the event that Bank is no longer
      a
      Syndicate Lender under the Credit Agreement, the Incorporated Representations
      shall be those set forth in the Credit Agreement as of the time Bank ceases
      to
      be a Syndicate Lender under the Credit Agreement.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (g)  Misrepresentation.
      Neither
      this Agreement nor any other document, statement, financial statement, or
      certificate furnished to Bank by or on behalf of any Borrower in connection
      herewith, contains an untrue statement of a material fact with respect to the
      financial condition or properties of any Borrower or omits to state a material
      fact necessary to make the statements contained therein not misleading or,
      insofar as any Borrower can now reasonably foresee, may in the future materially
      adversely affect the financial condition, operations, properties or prospects
      of
      any Borrower which has not been set forth in this Agreement or in a document,
      statement, financial statement, or certificate furnished to Bank in connection
      herewith.

     

    4.  General
      Covenants.
      In
      addition to the covenants contained herein and in the other Loan Documents,
      each
      Borrower hereby covenants and agrees that, so long as any of the Borrowings
      are
      outstanding, such Borrower shall, except as Bank may otherwise agree in writing,
      which agreement shall not be unreasonably withheld, delayed or
      conditioned:

     

    (a)  Debt;
      Guarantees and Contingencies.
      Not
      create, incur, assume or suffer to exist any indebtedness for borrowed money
      other than: (i) the Borrowings and any other indebtedness to Bank, (ii)
      indebtedness to the Syndicate Lenders pursuant to the Credit Agreement, and
      (iii) other indebtedness permitted under the Credit Agreement.

     

    (b)  Liens
      and Encumbrances.
      Not
      create, assume or permit to exist any mortgage, pledge, encumbrance or other
      security interest or lien upon the Hunting Park Property, except for the
      Mortgage.

     

    (c)  Incorporation
      by Reference of Covenants.
      To the
      extent not specifically addressed in this Section 4, the text contained in
      Section 5 “Affirmative Covenants” and Section 6 “Negative Covenants” of the
      Credit Agreement is hereby incorporated by reference in this Section 4 (the
      “Incorporated Covenants”) substituting, as appropriate, for references to “Agent
      or “Bank” therein a reference to “Bank” as herein defined. All capitalized terms
      used directly or indirectly in the Incorporated Covenants and defined in the
      Credit Agreement are hereby incorporated by reference in this Agreement for
      the
      purpose of giving the same meaning to the Incorporated Covenants herein as
      are
      given to such Incorporated Covenants in the Credit Agreement. In the event
      that
      (i) Bank is no longer a Syndicate Lender under the Credit Agreement, the
      Incorporated Covenants shall be those set forth in the Credit Agreement at
      the
      time Bank ceases to be a Syndicate Lender or (ii) the Credit Agreement is
      terminated in accordance with its terms and Bank elects not to terminate this
      Agreement, the Incorporated Covenants shall be those set forth in the Credit
      Agreement immediately prior to the time the Credit Agreement is
      terminated.

     

    (d)  Hedge
      Agreements.
      

     

    (i)  Initial
      Term Loan.
      Within
      60 days following the date hereof, the Borrowers shall have purchased and
      entered into, and at all times thereafter maintain, one or more Interest Hedge
      Agreements (as defined herein) which shall hedge the interest cost to the
      Borrowers on at least seventy-five percent (75%) of the principal amount of
      the
      Initial Term Loan. Each such Interest Hedge Agreement (A) shall provide interest
      rate protection for a duration reasonably acceptable to Bank, (B) must be
      reasonably satisfactory to Bank in all respects, (C) shall be entered into
      with
      counterparties reasonably satisfactory to Bank, and (D) shall conform to then
      current International Swaps and Derivatives Association standards. All
      obligations of the Borrowers pursuant to any Interest Hedge Agreement entered
      into in connection with the Initial Term Loan will be unsecured. For purposes
      hereof, “Interest Hedge Agreement” shall mean any interest rate swap agreement,
      interest rate cap agreement, interest rate floor agreement, interest rate collar
      agreement, interest rate option or any other agreement regarding the hedging
      of
      interest rate risk exposure executed in connection with hedging the interest
      rate exposure of any person and any confirming letter executed pursuant to
      such
      agreement, all as amended, restated, supplemented or otherwise modified from
      time to time.

     

    (ii)  Secondary
      Term Loan and Mortgage Term Loan.
      Within
      60 days after the funding date of the Secondary Term Loan and the Mortgage
      Term
      Loan, the Borrowers shall have purchased and entered into, and at all times
      thereafter maintain, one or more Interest Hedge Agreements (as defined herein)
      which 

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

    shall
      hedge the interest cost to the Borrowers on at least seventy-five percent (75%)
      of the principal amount of the Secondary Term Loan and seventy-five percent
      (75%) of the principal amount of the Mortgage Term Loan. Each such Interest
      Hedge Agreement (A) shall provide interest rate protection for a duration
      reasonably acceptable to Bank, (B) must be reasonably satisfactory to Bank
      in
      all respects, (C) shall be entered into with counterparties reasonably
      satisfactory to Bank, and (D) shall conform to then current International Swaps
      and Derivatives Association standards. All obligations of the Borrowers pursuant
      to any Interest Hedge Agreement entered into in connection with (A) the
      Secondary Term Loan shall be unsecured and (B) the Mortgage Term Loan shall
      be
      secured by the Mortgage. Any Interest Hedge Agreement entered into between
      the
      Borrowers and any person other than Bank or its affiliates shall be unsecured.
      

     

    5.  Events
      of Default.  The
      occurrence of any of the following will be deemed to be an Event of
      Default:

     

    (a)  Default
      under the Credit Agreement.
      An Event
      of Default (as defined in the Credit Agreement) shall exist.

     

    (b)  Breach
      of Warranty.
      Any
      financial statement, representation, warranty or certificate made or furnished
      by the Borrowers to Bank in connection with this Agreement shall be materially
      false, incorrect or incomplete when made.

     

    (c)  Other
      Default.
      The
      occurrence of an Event of Default under the Notes, the Mortgage or any of the
      other Loan Documents.

     

    6.  Conditions.

     

    (a)  Initial
      Advance.
      Bank’s
      obligation to make the Initial Term Loan is subject to the conditions that
      as of
      the date of such advance:

     

    (i)  No
      Event of Default.
      No Event
      of Default or event which with the passage of time, the giving of notice or
      both
      would constitute an Event of Default shall have occurred and be continuing;
      

     

    (ii)  Corporate
      Proceedings.
      Bank
      shall have received a certificate of the Secretary of each Borrower dated as
      of
      the date hereof certifying (a) that attached thereto is a true and complete
      copy
      of the resolutions, in form and substance satisfactory to Bank, of such
      Borrower’s board of directors authorizing the execution, delivery and
      performance of this Agreement, the Notes and each of the other Loan Documents
      to
      which it is a party, and that such resolutions have not been amended, modified,
      revoked or rescinded in any manner and are in full force and effect, (b) that
      attached thereto is a true and complete copy of its Articles or Certificate
      of
      Incorporation, certified by the Secretary of State of the state in which such
      Borrower is incorporated and Bylaws, and that such Articles of Incorporation
      and
      Bylaws have not been amended, modified, revoked or rescinded and are in full
      force and effect, (c) as to the incumbency and specimen signatures of each
      officer executing the Loan Documents on behalf of such Borrower, and (d) that
      the representations contained in Section 3 are true and correct, that such
      Borrower is in compliance with all the covenants contained herein and there
      exists no Event of Default after giving effect to the Initial Term Loan
      hereunder;

     

    (iii)  Receipt
      of Loan Documents.
      The
      Borrowers shall have duly executed and delivered this Agreement and the Initial
      Term Note and such other instruments and documents which Bank may reasonably
      request in connection with the Initial Term Loan and the transactions provided
      for in this Agreement;

     

    (iv)  Good
      Standing.
      Bank
      shall have received certificates of good standing, subsistence and/or status
      dated a recent date from the Secretary of State or appropriate taxing or other
      authorities in the 

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

    jurisdiction
      of incorporation or organization of each Borrower and in other locations
      reasonably requested by Bank;

     

    (v)  Opinion
      of Borrowers’ Counsel.
      Bank
      shall have received a written opinion of the Borrowers’ counsel addressed to
      Bank and covering such matters as Bank may reasonably require;

     

    (vi)  Credit
      Agreement.
      The
      Conditions to Effectiveness as set forth in Section 4.1 of the Credit Agreement
      have been satisfied; and

     

    (vii)  Fees.
      The
      Borrowers shall have paid Bank a commitment fee in the amount of
      $6,625.

     

    (b)  Subsequent
      Borrowings.
      Bank’s
      obligation to make the Secondary Term Loan and Mortgage Term Loan is subject
      to
      the conditions that as of the date the Secondary Term Loan and Mortgage Term
      Loan are made:

     

    (i)  Representations
      and Warranties.
      Each
      of
      the representations and warranties (i) made by the Borrowers under this
      Agreement or any other Loan Document or (ii) which are contained in any
      certificate, document, financial or other statement furnished at any time in
      connection with the Loan Documents, shall be true and correct in all respects
      on
      and as of such date as if made on and as of such date except to the extent
      that
      such representations and warranties relate to an earlier date (in which case
      the
      representations and warranties that expressly relate to an earlier date shall
      be
      true and correct in all material respects as of such date);

     

    (ii)  No
      Event of Default.
      No Event
      of Default or event which with the passage of time, the giving of notice or
      both
      would constitute an Event of Default shall have occurred and be
      continuing;

     

    (iii)  Additional
      Matters.
      All
      corporate and other proceedings, and all documents, instruments and other legal
      matters in connection with the transactions contemplated by this Agreement,
      the
      other Loan Documents shall be reasonably satisfactory in form and substance
      to
      Bank, and Bank shall have received such other documents in respect of any aspect
      or consequence of the transactions contemplated hereby or thereby as it shall
      reasonably request;

     

    (iv)  Request
      Date.
      The
      Borrowers shall have requested the Secondary Term Loan and the Mortgage Term
      Loan prior to the Funding Expiration Date;

     

    (v)  Loan
      Documents.
      The
      Borrower shall have duly executed in favor of and delivered to Bank the
      Secondary Term Note, the Mortgage Term Note and the Mortgage;

     

    (vi)  Opinion
      of Borrowers’ Counsel.
      Bank
      shall have received a written opinion of the Borrowers’ counsel addressed to
      Bank and covering such matters as Bank may reasonably require;

     

    (vii)  Sales
      Agreement.
      Bank
      shall have received and reviewed, to its satisfaction, the terms of sale and
      the
      final sales agreement pursuant to which the applicable Borrower is purchasing
      the Hunting Park Property;

     

    (viii)  Appraisal.
      Bank
      shall have received, in form and substance satisfactory to it, a completed
      appraisal of the Hunting Park Property reflecting, with respect to the Mortgage
      Term Loan, a loan to value ratio of at least 80% by an appraisal firm selected
      by and acceptable to Bank;

     

    (ix)  Title
      Insurance.
      Bank
      shall have received a fully paid mortgage title insurance policy (or a binding
      commitment to issue insurance policy, marked to Bank’s satisfaction to evidence
      the form of such policy to be delivered with respect to the Mortgage) in
      standard ALTA form, issued by a title insurance company reasonably satisfactory
      to Bank, in an amount equal to the Mortgage Term Loan and 

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    insuring
      the Mortgage to create a valid first lien on the Hunting Park Property with
      no
      exceptions which Bank shall not have approved;

     

    (x)  Environmental
      Report.
      Bank
      shall have received, in form and substance reasonably satisfactory to it,
      evidence demonstrating that the Hunting Park Property is in compliance with
      all
      Environmental Laws in all material respects, including, without limitation,
      Phase I environmental assessments of the Property;

     

    (xi)  Insurance.
      Bank
      shall have received evidence to its satisfaction that the Borrowers have
      obtained certificates of insurance (including flood insurance, if applicable)
      of
      the type required hereby or by the Mortgage, with the appropriate lender loss
      payee/mortgagee endorsements; and

     

    (xii)  Fees.
      The
      Borrowers shall have paid Bank a commitment fee in the amount of $5,875.

     

    The
      Borrowings by any Borrower hereunder shall constitute a representation and
      warranty by the Borrowers as of the date of such Borrowing that the conditions
      contained in this Section 6 have been satisfied.

     

    7.  General
      Provisions.

     

    (a)  Expenses.  The
      Borrowers agree to pay Bank, upon the execution of this Agreement, and otherwise
      on demand, all reasonable and documented costs and expenses incurred by Bank
      in
      connection with the preparation, negotiation and delivery of this Agreement
      and
      the other Loan Documents, and any modifications thereto, and the collection
      of
      all of the obligations arising hereunder and thereunder, including but not
      limited to enforcement actions, relating to the Borrowings, whether through
      judicial proceedings or otherwise, or in defending or prosecuting any actions
      or
      proceedings arising out of or relating to this Agreement, including reasonable
      fees and expenses of counsel (which may include costs of in-house counsel),
      expenses for auditors, appraisers and environmental consultants, lien searches,
      recording and filing fees and taxes.

     

    (b)  Waivers.
      The
      provisions of this Agreement may from time to time be waived in writing by
      Bank
      in its sole discretion. Any such waiver of any kind on the part of Bank of
      any
      breach or default under this Agreement or any waiver of any provision or
      condition of this Agreement must be in writing and shall be effective only
      to
      the extent set forth in such writing. No delay by Bank in exercising any right
      or remedy hereunder shall operate as a waiver thereof.

     

    (c)  Binding
      Nature.
      The
      rights and privileges of Bank contained in this Agreement shall inure to the
      benefit of its successors and assigns, and the duties of each Borrower shall
      bind all its successors, and assigns. Each of the signers shall be jointly
      and
      severally bound by the terms hereof.

     

    (d)  Governing
      Law; Jurisdiction.
      Time of
      performance hereunder is of the essence of this Agreement. This Agreement and
      any written supplement hereto executed by any Borrower in which reference to
      this Agreement is made shall in all respects be governed by the laws of the
      Commonwealth of Pennsylvania (except to the extent that federal law governs).
      Each Borrower hereby irrevocably consents to the exclusive jurisdiction of
      any
      state or federal court where Bank’s office indicated above is located; provided
      that nothing contained in this Agreement will prevent Bank from initiating
      proceedings in the courts of any other jurisdiction in which any Borrower or
      any
      of its properties or collateral may be found. Each Borrower waives any objection
      to venue of any such suit, action or proceeding brought in such a court or
      that
      such court is an inconvenient forum.

     

    (e)  Severability.
      If any
      provision hereof shall for any reason be held invalid or unenforceable, no
      other
      provision shall be affected thereby, and this Agreement shall be construed
      as if
      the invalid or unenforceable provision had never been a part of it. The
      descriptive headings hereof are for convenience only and shall not in any way
      affect the meaning or construction of any provision hereof.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (f)  Waiver
      of Jury Trial.
      Any
      suit, action, or proceeding, whether claim or counterclaim, brought or
      instituted by any Borrower or Bank, or any of their successors or assigns,
      on or
      with respect to this Agreement or the dealings of such Borrower or Bank with
      respect hereto, shall be tried only by a court and not by a jury. Each
      Borrower hereby knowingly, voluntarily and intentionally waives any right to
      a
      trial by jury in any such suit, action or proceeding.
      Further,
      each Borrower waives any right it may have to claim or recover, in any such
      suit, action or proceeding, any special, exemplary, punitive or consequential
      damages or any damages other than, or in addition to, actual damages.
Each
      Borrower
      acknowledges and agrees that this paragraph is a specific and material aspect
      of
      this Agreement and that Bank would not extend credit to any Borrower if the
      waivers set forth in this paragraph were not a part of this
      Agreement.

     

    (g)  Notices.
      Every
      notice and other communication under this Agreement shall be in writing and
      may
      be by hand-delivery, first-class mail (postage prepaid), facsimile transmission
      (if confirmed promptly by one of the other methods specified herein), or by
      nationally recognized overnight courier service, to the addresses for Bank
      and
      the Borrowers set forth herein or to such other address as one may give to
      the
      other in writing for such purposes. Notice given by telecopy or other means
      of
      electronic transmission shall be deemed to have been given and received when
      sent. Notice by overnight courier shall be deemed to have been given and
      received on the date scheduled for delivery. Notice by mail shall be deemed
      to
      have been given and received three (3) calendar days after the date first
      deposited in the United States Mail. Notice by hand delivery shall be deemed
      to
      have been given and received upon delivery.

     

    8.  Special
      Covenants.
      In
      addition to the covenants contained herein or in the Notes or any other Loan
      Document, each Borrower hereby agrees that, so long as any of the Borrowings
      are
      outstanding, such Borrower shall, except as Bank may grant its prior written
      consent, comply with the special provisions or covenants set forth in any
      written supplement, now or hereafter executed by such Borrower, in which
      reference to this Agreement is made. Further, each Borrower hereby acknowledges
      that some or all of the Borrowings may be discretionary on the part of Bank
      and/or may be payable upon demand of Bank. In this regard, it is hereby agreed
      and acknowledged by each Borrower that nothing contained in this Agreement,
      the
      Notes or in any such written supplement hereto now or hereafter executed by
      any
      Borrower shall in any way modify, limit, diminish, negate or eliminate the
      discretionary features or aspects of any Borrowing.

     

    

    
      
        
           

        

        
        

      

      
        7

        
          

        

      

      
        
        

        
          

        

      

    

    

    
      	
              Signatures

            

    

    

    

    Witness
      the due execution hereof as of the date set forth above.

     

    
      	
              Attest:

            	
              TASTY
                BAKING COMPANY

            
	 	 
	 	 
	
              By: 

            	
              By:        
                David S. Marberger

            
	
              Name: 

            	
              David
                S. Marberger

            
	
              Title: 

            	
              Senior
                Vice President

            
	 	 
	
              Attest:

            	
              TASTYKAKE
                INVESTMENT COMPANY

            
	 	 
	 	 
	
              By: 

            	
              By:       
                /s/ Eugene
                P. Malinowski

            
	
              Name: 

            	
              Eugene
                P. Malinowski

            
	
              Title: 

            	
              Treasurer

            
	 	 
	
              Attest:

            	
              TBC
                FINANCIAL SERVICES, INC.

            
	 	 
	 	 
	
              By: 

            	
              By:
                /s/ Eugene
                P. Malinowski

            
	
              Name: 

            	
              Eugene
                P. Malinowski

            
	
              Title: 

            	
              Treasurer

            
	 	 
	
              Attest:

            	
              TASTY
                BAKING OXFORD, INC.

            
	 	 
	 	 
	
              By: 

            	
              By:
                /s/    Eugene
                P. Malinowski

            
	
              Name: 

            	
              Eugene
                P. Malinowski

            
	
              Title: 

            	
              Treasurer

            
	 	 
	 	 
	 	
              CITIZENS
                BANK OF PENNSYLVANIA

            
	 	 
	 	 
	 	
              By:
                /s/ Mark
                Bomberger

            
	 	
              Mark
                Bomberger

            
	 	
              Senior
                Vice President

            
	 	 
	 	
              Office

               Address

            	
               

              2001
                Market Street, Suite 600

            
	 	 	
              Philadelphia,
                PA 19103

            
	 	 	 

    

     

    
      
        
           

        

        
        

      

      
        8

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      A

     

    Form
      of Secondary Term Note

     

    See
      attached.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

     

    Form
      of Mortgage Term Note

     

    See
      attached.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

     

    Form
      of Mortgage 

     

    See
      attached.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

      
        	
                 

                Initial
                  Term Note

              	 

      

      

       

      
        	 	 
	
                $5,300,000

                 

              	
                September
                  13, 2005

                 

              

      

       

      FOR
        VALUE RECEIVED, and
        intending to be legally bound, Undersigned, as defined below, promises to
        pay
        Citizens Bank of Pennsylvania, a Pennsylvania state chartered bank (“Bank”) or
        its order at 2001 Market Street, Suite 600, Philadelphia, Pennsylvania 19103,
        the sum of Five Million Three Hundred Thousand Dollars ($5,300,000), with
        interest on the outstanding balance from the date of this Note (“Note”)
        at the
        rate(s) (“Contractual
        Rate(s)”)
        specified herein, all as provided below. This Note is issued in connection
        with
        a Loan Agreement dated as of the date hereof (the “Loan Agreement”) between
        Undersigned and Bank, and the other agreements and documents executed in
        connection therewith or referred to therein, the terms of which are incorporated
        herein by reference (as amended, modified or renewed from time to time,
        collectively the “Credit
        Documents”).
        Capitalized Terms not defined herein shall have the meaning ascribed to them
        in
        the Loan Agreement.

       

      So
        long
        as Bank is the holder hereof, Bank’s books and records shall be presumed, except
        in the case of manifest error, to accurately evidence at all times all amounts
        outstanding under this Note and the date and amount of each advance and payment
        made pursuant hereto.

       

      The
        prompt and faithful performance of all of Undersigned’s obligations hereunder,
        including without limitation time of payment, is of the essence of this
        Note.

       

      Undersigned
        hereby grants to Bank a security interest in, lien upon, and right of setoff
        against, all deposit accounts, credits, securities, moneys, or other property
        of
        Undersigned which may at any time be in the possession of, delivered to,
        or owed
        by Bank, including any proceeds or returned or unearned premiums of insurance,
        and the proceeds of all the foregoing property.

       

      1.  Interest
        Rate.  The
        amounts outstanding under this Note shall bear interest at the rate or rates
        set
        forth below as selected by Undersigned (each, a “Rate
        Option”):

       

      (i)  Prime
        Rate Option.
        A rate
        per annum equal to the (A) the Prime Rate plus
        (B) the Applicable Margin (as defined in the Credit Agreement referred to
        in the Loan Agreement) for Base Rate Loans (as defined in the Credit Agreement).
        For purposes hereof, the term “Prime
        Rate”
        means a
        per annum rate of interest, calculated on a 365 or 366 day, as the case may
        be,
        basis but charged on the actual number of days elapsed, equal to the rate
        of
        interest announced from time to time by Bank as its Prime Rate which rate
        is not
        necessarily the lowest interest rate charged by the Bank for loans, such
        Prime
        Rate to change from time to time as of the effective date of each change
        in the
        Prime Rate. If and when the Prime Rate changes, the rate of interest with
        respect to any advance to which the Prime Rate Option applies will change
        automatically without notice to Undersigned, effective on the date of any
        such
        change. There are no required minimum interest periods for advances bearing
        interest under the Prime Rate Option.

       

      (ii)  LIBOR
        Rate Option.
        A
        rate
        per annum equal to the sum of (A) the LIBOR Rate plus
        (B) the Applicable Margin for LIBOR Loans (as defined in the Credit
        Agreement) plus
        (C) ten (10) basis points (0.10%). Such rate per annum shall be computed on
        the basis of a year of 360 days for the actual number of days
        elapsed.

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      For
        purposes hereof, the following terms shall have the following
        meanings:

       

      “Business
        Day”
shall
        mean any day which is neither a Saturday or Sunday nor a legal holiday on
        which
        commercial banks are authorized or required to be closed in Philadelphia,
        Pennsylvania; (b) when such term is used to describe a day on which a borrowing,
        payment, prepaying, or repaying is to be made in respect of any LIBOR Rate
        Loan,
        any day which is: (i) neither a Saturday or Sunday nor a legal holiday on
        which
        commercial banks are authorized or required to be closed in New York City;
        and
        (ii) a London Banking Day; and (c) when such term is used to describe a day
        on
        which an interest rate determination is to be made in respect of any LIBOR
        Rate
        Loan, any day which is a London Banking Day.

       

      “Hedging
        Contracts”
means,
        interest rate swap agreements, interest rate cap agreements and interest
        rate
        collar agreements, or any other agreements or arrangements entered into between
        Undersigned and Bank and designed to protect Undersigned against fluctuations
        in
        interest rates or currency exchange rates.

       

      “Hedging
        Obligations”
means,
        with respect to Undersigned, all liabilities of Undersigned to Bank under
        Hedging Contracts. 

       

      “Interest
        Period”
means
        relative to any LIBOR Rate Loans initially, the period beginning on (and
        including) the date on which such LIBOR Rate Loan is made or continued as,
        or
        converted into, a LIBOR Rate Loan and ending on (but excluding) the day which
        numerically corresponds to such date one, two, three or six months thereafter
        (or, if such month has no numerically corresponding day, on the last Business
        Day of such month), in each case as Undersigned may select; and (ii) thereafter,
        each period commencing on the last day of the next preceding Interest Period
        applicable to such LIBOR Rate Loan and ending one, two, three or six months
        thereafter, as selected by Undersigned by irrevocable notice to Bank not
        less
        than two Business Days prior to the last day of the then current Interest
        Period
        with respect thereto; provided,
        however,
        that (a)
        Undersigned shall not be permitted to select Interest Periods to be in effect
        at
        any one time which have expiration dates occurring on more than three (3)
        different dates; (b) Interest Periods commencing on the same date for LIBOR
        Rate
        Loans comprising part of the same advance under this agreement shall be of
        the
        same duration; (c) Interest Periods for LIBOR Rate Loans in connection with
        which Undersigned has or may incur Hedging Obligations with Bank shall be
        of the
        same duration as the relevant periods set under the applicable Hedging
        Contracts; (d) if such Interest Period would otherwise end on a day which
        is not
        a Business Day, such Interest Period shall end on the next following Business
        Day unless such day falls in the next calendar month, in which case such
        Interest Period shall end on the first preceding Business Day; and (e) no
        Interest Period may end later than the Initial Term Loan Maturity
        Date.

       

      “LIBOR
        Lending Rate”
means,
        relative to any LIBOR Rate Loan to be made, continued or maintained as, or
        converted into, a LIBOR Rate Loan for any Interest Period, a rate per annum
        determined pursuant to the following formula:

       

      LIBOR
        Lending Rate = LIBOR
        Rate

      (1.00
        -
        LIBOR Reserve Percentage)

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      “LIBOR
        Rate”
means
        relative to any Interest Period for LIBOR Rate Loans, the offered rate for
        deposits of U.S. Dollars in an amount approximately equal to the amount of
        the
        requested LIBOR Rate Loan for a term coextensive with the designated Interest
        Period which the British Bankers’ Association fixes as its LIBOR rate and which
        appears on the Telerate Page 3750 as of 11:00 a.m. London time on the day
        which
        is two London Banking Days prior to the beginning of such Interest
        Period.

       

      “LIBOR
        Rate Interest Payment Date”
means
        relative to any LIBOR Rate Loan, having an Interest Period of three months
        or
        less, the last Business Day of such Interest Period, and as to any LIBOR
        Rate
        Loan having an Interest Period longer than three months, each Business Day
        which
        is three months, or a whole multiple thereof, after the first day of such
        Interest Period and the last day of such Interest Period.

       

      “LIBOR
        Rate Loan”
means
        any loan or advance the rate of interest applicable to which is based upon
        the
        LIBOR Rate.

       

      “LIBOR
        Reserve Percentage”
means,
        relative to any day of any Interest Period for LIBOR Rate Loans, the maximum
        aggregate (without duplication) of the rates (expressed as a decimal fraction)
        of reserve requirements (including all basic, emergency, supplemental, marginal
        and other reserves and taking into account any transitional adjustments or
        other
        scheduled changes in reserve requirements) under any regulations of the Board
        of
        Governors of the Federal Reserve System (the “Board”) or other governmental
        authority having jurisdiction with respect thereto as issued from time to
        time
        and then applicable to assets or liabilities consisting of “Eurocurrency
        Liabilities”, as currently defined in Regulation D of the Board, having a term
        approximately equal or comparable to such Interest Period.

       

      “London
        Banking Day”
means
        a
        day on which dealings in US dollar deposits are transacted in the London
        interbank market.

       

      If
        Bank
        shall have determined in its reasonable discretion that (a) US dollar deposits
        in the relevant amount and for the relevant period are not available to Bank
        in
        the London interbank market; (b) by reason of circumstances affecting Bank
        in
        the London interbank, adequate means do not exist for ascertaining the LIBOR
        Rate applicable hereunder to LIBOR Rate Loans of any duration, or (c) LIBOR
        no
        longer adequately reflects Bank’s cost of funding loans, then, upon notice from
        Bank to Undersigned, the obligations of Bank hereunder to make or continue
        any
        loans as, or to convert any loans into, LIBOR Rate Loans of such duration
        shall
        forthwith be suspended until Bank shall notify Undersigned that the
        circumstances causing such suspension no longer exist. Thereafter, until
        Bank
        notifies Undersigned that the circumstances giving rise to such suspension
        no
        longer exist, (a) the availability of the LIBOR Rate Option shall be suspended,
        and (b) the interest rate for all advances then bearing interest under the
        LIBOR
        Rate Option shall be converted at the expiration of the then current Interest
        Period(s) to the Prime Rate Option. If Bank shall determine (which determination
        shall, upon notice thereof to Undersigned be conclusive and binding on
        Undersigned) that the introduction of or any change in or in the interpretation
        of any law, rule, regulation or guideline, (whether or not having the force
        of
        law) makes it unlawful, or any central bank or other governmental authority
        asserts that it is unlawful, for Bank to make, continue or maintain any LIBOR
        Rate Loan as, or to convert any loan into, a LIBOR Rate Loan of a certain
        duration, the obligations of Bank to make, continue, maintain or convert
        into
        any such LIBOR Rate Loans shall, upon such determination, forthwith be suspended
        until Bank shall notify Undersigned that the circumstances causing such
        suspension no longer exist, and all LIBOR Rate Loans of such type shall

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      automatically
        convert to the Prime Rate Option at the end of the then current Interest
        Periods
        with respect thereto or sooner, if required by such law or
        assertion.

       

      If
        any
        law, regulation, order, decree or guideline or interpretation or application
        thereof by any governmental authority charged with the interpretation or
        administration thereof or compliance by Bank with any request or directive
        of
        any governmental authority (whether or not having the force of law) shall
        either
        impose, modify or deem applicable any capital adequacy or similar requirement
        against assets (funded or contingent) of, or credits or commitments to extend
        credit extended by Bank and the result of any of the foregoing is to increase
        the cost to, reduce the income receivable by, or impose any expense (including
        loss of margin) upon Bank with respect to the Credit Documents, this Note,
        or
        the making, maintenance or funding of any part of the loans (or, in the case
        of
        capital adequacy or similar requirement, to have the effect of reducing the
        rate
        of return on Bank’s capital, taking into account Bank’s policies with regard to
        capital adequacy) by an amount which Bank deems to be material, Bank shall
        from
        time to time notify Undersigned of the amount determined in good faith by
        Bank
        (which determination shall be conclusive absent manifest error) to be necessary
        to compensate Bank for such increase, reduction or imposition. Such amount
        shall
        be due and payable by Undersigned to Bank ten (10) business days after such
        notice is given.

       

      2.  Default
        Rate; Late Charge.
        Upon the
        occurrence of any Event of Default (as defined below), at Bank’s option,
        interest shall accrue at a rate equal to two percent (2%) per annum above
        the
        Contractual Rate(s) specified (the “Default Rate”) until the earlier of (a) the
        date that such Event of Default has been cured, (b) until and including the
        date
        of maturity hereof. After maturity, whether by acceleration or otherwise,
        at
        Bank’s option,
        interest shall accrue at the Default Rate until all sums due hereunder are
        paid.
        Interest shall continue to accrue after the entry of judgment by confession
        or
        otherwise at the Default Rate until all sums due hereunder and/or under the
        judgment are paid. 

       

      If
        any
        payment (including without limitation any regularly scheduled payment, balloon
        payment and final payment) is not paid within 15 days after it is due,
        Undersigned will pay a late charge equal to 1% of the unpaid portion of the
        payment due, regardless of whether the payment due consists of principal
        and
        interest, principal only or interest only:

       

      Such
        late
        charge shall be in addition to any increase made to the Contractual Rate(s)
        applicable to the outstanding balance hereof as a result of maturity of this
        Note or otherwise, as well as in addition to any other applicable fees, charges
        and costs.

       

      3.  Payment
        of Interest.
        Undersigned shall pay accrued interest on the unpaid principal balance of
        this
        Note in arrears: (a) for the portion of advances bearing interest under the
        Prime Rate Option, on the last day of each calendar month during the term
        hereof
        commencing on September 30, 2005, (b) for amounts hereunder bearing
        interest under the LIBOR Rate Option, (i) for Interest Periods of one, two
        or
        three months, on the LIBOR Rate Interest Payment Date for such advance, or
        (ii)
        for Interest Periods of six months, every three months and (c) for all
        advances, at maturity, whether by acceleration of this Note or otherwise,
        and
        after maturity, on demand until paid in full. All outstanding principal and
        accrued interest hereunder shall be due and payable in full on the Initial
        Term
        Loan Maturity Date. 

       

      If
        any
        payment under this Note is due on a day which is not a business day under
        the
        laws of the State where Bank’s office indicated above is located, such payment
        shall be made on the next succeeding business day and such extended time
        shall
        be included in the computation of interest. Undersigned hereby authorizes
        Bank,
        upon prior written notice to Undersigned, to charge any deposit account of
        Undersigned at Bank for any payment due. Payments received will be applied
        first
        to charges, fees and 

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      expenses
        (including attorneys’ fees), second to any accrued but unpaid interest and
        lastly to the unpaid installment of principal in the reverse order of their
        scheduled maturity.

       

      4.  Payment
        of Principal.
        Principal
        shall be due and payable in fifty-nine (59) consecutive installments of in
        the
        amount of $29,444.44 each, commencing on September 30, 2005 and continuing
        on
        the last day of each calendar month thereafter. Notwithstanding the foregoing,
        all outstanding principal and accrued interest shall be due and payable in
        full
        on the earliest of (a) September 12, 2010, (b) the Revolver Termination Date
        (as
        defined in the Credit Agreement) and (c) the date the Bank ceases to be a
        Syndicate Lender under the Credit Agreement (such date, the “Initial Term Loan
        Maturity Date”). 

       

      If
        any
        payment under this Note is due on a day which is not a business day under
        the
        laws of the State where Bank’s office indicated above is located, such payment
        shall be made on the next succeeding business day and such extended time
        shall
        be included in the computation of interest. Undersigned hereby authorizes
        Bank,
        upon prior written notice to Undersigned, to charge any deposit account of
        Undersigned at Bank for any payment due. Payments received will be applied
        first
        to charges, fees and expenses (including attorneys’ fees), second to any accrued
        but unpaid interest and lastly to the unpaid installment of principal in
        the
        reverse order of their scheduled maturity.

       

      5.  Interest
        Rate Election.
        Subject
        to the terms and conditions of this Note, at the end of each interest period
        applicable to any amounts hereunder, Undersigned may renew the Rate Option
        applicable to such amounts or convert such amounts to a different Rate Option;
        provided that,
        during
        any period in which any Event of Default (as hereinafter defined) has occurred
        and is continuing, any amounts bearing interest under the LIBOR Rate Option
        shall, at Bank’s sole discretion, be converted at the end of the applicable
        LIBOR Interest Period to the Prime Rate Option and the LIBOR Rate Option
        will
        not be available to Undersigned with respect to the conversion or renewal
        of any
        other amounts until such Event of Default has been cured by Undersigned or
        waived by Bank. Undersigned shall notify Bank of each election of a Rate
        Option,
        each conversion from one Rate Option to another, the amount of the portions
        hereunder to be allocated to each Rate Option and where relevant the Interest
        Periods therefor. In the case of converting to the LIBOR Rate Option, such
        notice shall be given by 10:00 a.m. (New York time) not less than two (2)
        nor
        more than five (5) Business Days prior to the commencement of any Interest
        Period. If no Interest Period is specified in any such notice for an amount
        that
        is to bear interest under the LIBOR Rate Option, Undersigned shall be deemed
        to
        have selected a Interest Period of one month’s duration. If no notice of
        election, conversion or renewal is timely received by Bank with respect to
        any
        amount hereunder, Undersigned shall be deemed to have elected the Prime Rate
        Option therefor. Any such election shall be promptly confirmed in writing
        by
        such method as Bank may require.

       

      6.  Covenants.
        Undersigned covenants and agrees that until all indebtedness evidenced hereby
        has been paid in full, Undersigned shall: (a) use the proceeds of the loan
        evidenced hereby only for the business purpose(s) specified in the Loan
        Agreement; (b) provide, upon request, financial or other information
        documentation or certifications to Bank (including balance sheets and income
        statements), all in form and content reasonably satisfactory to Bank and
        (c) pay, upon demand by Bank, all amounts incurred by Bank in connection
        with any action or proceeding taken or commenced by Bank to enforce or collect
        this Note, including attorneys’ fees and costs and all costs of legal
        proceedings

       

      7.  Prepayment.
        Undersigned
        may prepay, in whole or in part, without penalty, any advance which is accruing
        interest under the Prime Rate Option. If Undersigned prepays (whether voluntary,
        on default or otherwise) all or any part of any advance which is accruing
        interest at the LIBOR Rate Option on other than the last day of the Interest
        Period, as applicable, Undersigned shall pay to Bank, in addition to all
        other
        amounts due under this Note, the Prepayment Fee set forth herein. For LIBOR
        Rate
        Loans in connection with which Undersigned has or may incur Hedging Obligations,
        additional obligations may be 

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      associated
        with prepayment, in accordance with the terms and conditions of the applicable
        Hedging Contracts. Undersigned shall give Bank, no later than 10:00 a.m.,
        New
        York City time, at least four (4) Business Days notice of any proposed
        prepayment, specifying the proposed date of payment and the principal amount
        to
        be paid. Each partial prepayment shall be in an integral multiple of $10,000
        and
        accompanied by the payment of all charges outstanding on such loans and of
        all
        accrued interest on the principal repaid to the date of payment. Undersigned
        acknowledges that prepayment or acceleration of a LIBOR Rate Loan during
        an
        Interest Period shall result in Bank incurring additional costs, expenses
        and/or
        liabilities and that it is extremely difficult and impractical to ascertain
        the
        extent of such costs, expenses and/or liabilities. Therefore, all full or
        partial prepayments of LIBOR Rate Loans shall be accompanied by, and Undersigned
        hereby promises to pay, on each date any such loan is prepaid or the date
        all
        sums payable hereunder become due and payable, by acceleration or otherwise,
        in
        addition to all other sums then owing, an amount (“Prepayment Fee”) determined
        by Bank pursuant to the following formula: (a) the then current rate for
        United
        States Treasury securities (bills on a discounted basis shall be converted
        to a
        bond equivalent) with a maturity date closest to the end of the Interest
        Period,
        as to which prepayment is made, subtracted
        from
        (b) the
        LIBOR Lending Rate plus the applicable margin applicable to the LIBOR Rate
        Loan
        being prepaid. If the result of this calculation is zero or a negative number,
        then there shall be no Prepayment Fee. If the result of this calculation
        is a
        positive number, then the resulting percentage shall be multiplied by the
        amount
        of the loan being prepaid. The resulting amount shall be divided by: (i)
        360 and
        multiplied by: (ii) the number of days remaining in the Interest Period as
        to
        which the prepayment is being made. Said amount shall be reduced to present
        value calculated by using the referenced United States Treasury securities
        rate
        and the number of days remaining on the Interest Period, as applicable, for
        the
        loan being prepaid. The resulting amount of these calculations shall be the
        Prepayment Fee.

       

      8.  Indemnities.
        In
        addition to the Prepayment Fee, Undersigned agrees to reimburse Bank (without
        duplication) for any increase in the cost to Bank, or reduction in the amount
        of
        any sum receivable by Bank, in respect, or as a result of: (a) any conversion
        or
        repayment or prepayment of the principal amount of any LIBOR Rate Loans on
        a
        date other than the scheduled last day of the Interest Period applicable
        thereto; (b) any loans not being made as LIBOR Rate Loans in accordance with
        the
        borrowing request thereof; (c) any LIBOR Rate Loans not being continued as,
        or
        converted into, LIBOR Rate Loans in accordance with the continuation/conversion
        notice thereof, or (d) any costs associated with marking to market any Hedging
        Obligations that (in the reasonable determination of Bank) are required to
        be
        terminated as a result of any conversion, repayment or prepayment of the
        principal amount of any LIBOR Rate Loan on a date other than the scheduled
        last
        day of the Interest Period applicable thereto;

       

      Bank
        shall promptly notify Undersigned in writing of the occurrence of any such
        event, such notice to state, in reasonable detail, the reasons therefor and
        the
        additional amount required fully to compensate Bank for such increased cost
        or
        reduced amount. Such additional amounts shall be payable by Undersigned to
        Bank
        within five days of its receipt of such notice, and such notice shall, in
        the
        absence of manifest error, be conclusive and binding on Undersigned. Undersigned
        understands, agrees and acknowledges the following: (i) Bank does not have
        any
        obligation to purchase, sell and/or match funds in connection with the use
        of
        LIBOR Rate as a basis for calculating the rate of interest on a LIBOR Rate
        Loan,
        (ii) the LIBOR Rate may be used merely as a reference in determining such
        rate,
        and (iii) Undersigned has accepted the LIBOR Rate as a reasonable and fair
        basis
        for calculating such rate, the Prepayment Fee, and other funding losses incurred
        by Bank. Undersigned further agrees to pay the Prepayment Fee and other funding
        losses, if any, whether or not Bank elects to purchase, sell and/or match
        funds.

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      9.  Taxes.
        All
        payments by Undersigned of principal of, and interest on, the LIBOR Rate
        Loans
        and all other amounts payable hereunder shall be made free and clear of and
        without deduction for any present or future income, excise, stamp or franchise
        taxes and other taxes, fees, duties, withholdings or other charges of any
        nature
        whatsoever imposed by any taxing authority, but excluding franchise taxes
        and
        taxes imposed on or measured by Bank’s net income or receipts (such non-excluded
        items being called “Taxes”). In the event that any withholding or deduction from
        any payment to be made by Undersigned hereunder is required in respect of
        any
        Taxes directly related to this Note pursuant to any applicable law, rule
        or
        regulation, then Undersigned will

       

      (a)  pay
        directly to the relevant authority the full amount required to be so withheld
        or
        deducted; 

       

      (b)  promptly
        forward to Bank an official receipt or other documentation satisfactory to
        Bank
        evidencing such payment to such authority; and 

       

      (c)  pay
        to
        Bank such additional amount or amounts as is necessary to ensure that the
        net
        amount actually received by Bank will equal the full amount Bank would have
        received had no such withholding or deduction been required.

       

      Moreover,
        if any Taxes are directly asserted against Bank with respect to any payment
        received by Bank hereunder, Bank may pay such Taxes and Undersigned will
        promptly pay such additional amount (including any penalties, interest or
        expenses) as is necessary in order that the net amount received by Bank after
        the payment of such Taxes (including any Taxes on such additional amount)
        shall
        equal the amount Bank would have received had not such Taxes been
        asserted.

       

      If
        Undersigned fails to pay any Taxes when due to the appropriate taxing authority
        or fails to remit to Bank the required receipts or other required documentary
        evidence, Undersigned shall indemnify Bank for any incremental Taxes, interest
        or penalties that may become payable by Bank as a result of any such failure.
        

       

      10.  Increased
        Costs.
        If on or
        after the date hereof the adoption of any applicable law, rule or regulation
        or
        guideline (whether or not having the force of law), 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 by Bank with any request or directive
        (whether or not having the force of law) of any such authority, central bank
        or
        comparable agency:

       

      (a)  shall
        subject Bank to any tax, duty or other charge with respect to its LIBOR Rate
        Loans or its obligation to make LIBOR Rate Loans, or shall change the basis
        of
        taxation of payments to Bank of the principal of or interest on its LIBOR
        Rate
        Loans or any other amounts due under this agreement in respect of its LIBOR
        Rate
        Loans or its obligation to make LIBOR Rate Loans (except for the introduction
        of, or change in the rate of, tax on the overall net income of the Bank or
        franchise taxes, imposed by the jurisdiction (or any political subdivision
        or
        taxing authority thereof) under the laws of which Bank is organized or in
        which
        Bank’s principal executive office is located); or 

       

      (b)  shall
        impose, modify or deem applicable any reserve, special deposit or similar
        requirement (including, without limitation, any such requirement imposed
        by the
        Board of Governors of the Federal Reserve System of the United States) against
        assets of, deposits with or for the account of, or credit extended by, Bank
        or
        shall impose on Bank or on the London interbank market any other condition
        affecting its LIBOR Rate Loans or its obligation to make LIBOR Rate
        Loans;

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      and
        the
        result of any of the foregoing is to increase the cost to Bank of making
        or
        maintaining any LIBOR Rate Loan, or to reduce the amount of any sum received
        or
        receivable by Bank under this Note with respect thereto, by an amount deemed
        by
        Bank to be material, then, within 15 days after demand by Bank, Undersigned
        shall pay to Bank such additional amount or amounts as will compensate Bank
        for
        such increased cost or reduction.

       

      11.  Events
        of Default.
        The
        occurrence of any of the following shall constitute an “Event of Default”
hereunder: (a) the
        nonpayment of any principal under this Note when due or the nonpayment of
        any
        interest, other indebtedness or other obligations under this Note within
        three
        (3) Business Days after the date when due; (b) the
        breach by any Obligor (defined as Undersigned and each surety or guarantor
        of
        any of Undersigned’s liabilities to Bank as well as any person or entity
        granting Bank a security interest in property to secure any indebtedness
        evidenced hereby) of any covenant or agreement contained in the Credit
        Documents, this Note, or in any separate security, guarantee or suretyship
        agreement between Bank and any Obligor,
        subject to any applicable notices or cure periods therein, the occurrence
        of any
        default hereunder or under the terms of any such agreement, or the discovery
        by
        Bank of any materially false or misleading representation made by any Obligor
        herein or in any such agreement or in any other information submitted to
        Bank by
        any Obligor; (c) any
        Event of Default (as defined in the Credit Agreement) under the Credit
        Agreement; (d) garnishment,
        tax assessment, attachment or taking by governmental authority or other creditor
        of any property of any Obligor which is in Bank’s possession or which
        constitutes security for any indebtedness evidenced hereby; or (e) the
        revocation, termination, cancellation, denial of liability, or the attempt
        of
        any of the foregoing, by any Obligor of any obligation or liability whatsoever
        of the Obligor to Bank, including without limitation any security, guarantee
        or
        suretyship agreement.

       

      12.  Acceleration;
        Remedies.
        Upon the
        occurrence of any Event of Default: (a) all
        amounts due under this Note, including the unpaid balance of principal and
        interest hereof, shall become immediately due and payable at the option of
        Bank,
        without any demand or notice whatsoever; and (b) Bank
        may immediately and without demand exercise any of its rights and remedies
        granted herein, under applicable law, or which it may otherwise have, against
        Undersigned or otherwise. Notwithstanding any provision to the contrary
        contained herein, upon the occurrence of an Event of Default as described
        in
        Section 7.1(g)(i) or 7.1(g)(ii) of the Credit Agreement, all amounts due
        under this Note, including without limitation the unpaid principal and interest
        hereof, shall become immediately due and payable, without any demand, notice,
        or
        further action by Bank whatsoever, and an action therefor shall immediately
        accrue.

       

      13.  Bank’s
        Rights.
        Undersigned hereby authorizes Bank, and Bank shall have the continuing right,
        at
        its sole option and discretion, to: (a) do
        anything which Undersigned is required but fails to do hereunder, and in
        particular Bank may, if Undersigned fails to do so, obtain and pay any premiums
        payable on any policy of insurance required to be obtained or maintained
        hereunder; (b) subject
        to the terms and conditions of any security documents, if applicable, direct
        any
        insurer to make payment of any insurance proceeds including any returned
        or
        unearned premiums, directly to Bank, and apply such moneys to any indebtedness
        or other amount evidenced hereby in such order or fashion as Bank may elect;
        and
(c) pay
        the proceeds of the loans evidenced by this Note to any or all of the
        Undersigned individually or jointly, or to such other persons as any of the
        Undersigned may direct and (d) add any amounts paid or incurred by Bank
        hereunder to the principal amount of the indebtedness evidenced by this
        Note

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      14.  Definitions;
        Miscellaneous Provisions. (a) Undersigned
        waives protest of all commercial paper at any time held by Bank on which
        Undersigned is in any way liable, notice of nonpayment at maturity of any
        and
        all accounts, and (except where requested hereby) notice of action taken
        by
        Bank; and hereby ratifies and confirms whatever Bank may do. Bank shall be
        entitled to exercise any right notwithstanding any prior exercise, failure
        to
        exercise or delay in exercising any such right. (b) If
        any provision hereof shall for any reason be held invalid or unenforceable,
        no
        other provision shall be affected thereby, and this Note shall be construed
        as
        if the invalid or unenforceable provision had never been a part of it. The
        descriptive headings of this Note are for convenience only and shall not
        in any
        way affect the meaning or construction of any provision hereof. (c) The
        rights and privileges of Bank contained in this Note shall inure to the benefit
        of its successors and assigns, and the duties of Undersigned shall bind all
        heirs, personal representatives, successors and assigns. (d) This
        Note shall in all respects be governed by the laws of the Commonwealth of
        Pennsylvania (except to the extent that federal law governs). (e)“Undersigned”
        refers individually and collectively to all makers of this Note. Undersigned
        shall each be jointly and severally bound by the terms hereof.

       

      [Signatures
        to Follow]

       

      

       

      
        
          
             

          

          
          

        

        
          9

          
            

          

        

        
          
          

          
          

        

      

      
        	
                Signatures

              

      

       

      

       

       

      Witness
        the due execution hereof intending to be legally bound as of the date first
        written above.

       

      
        	
                Attest:

              	
                TASTY
                  BAKING COMPANY

              
	 	 
	 	 
	
                By:      

              	
                By:  
                  /s/  David
                  S. Marberger      

              
	
                Name:      

              	
                David
                  S. Marberger

              
	
                Title:      

              	
                Senior
                  Vice President

              
	 	 
	
                Attest:

              	
                TASTYKAKE
                  INVESTMENT COMPANY

              
	 	 
	 	 
	
                By:      

              	
                By:  
                  /s/  Eugene
                  P. Malinowski      

              
	
                Name:      

              	
                Eugene
                  P. Malinowski

              
	
                Title:      

              	
                Treasurer

              
	 	 
	
                Attest:

              	
                TBC
                  FINANCIAL SERVICES, INC.

              
	 	 
	 	 
	
                By:      

              	
                By:  
                  /s/  Eugene
                  P. Malinowski      

              
	
                Name:      

              	
                Eugene
                  P. Malinowski

              
	
                Title:      

              	
                Treasurer

              
	 	 
	
                Attest:

              	
                TASTY
                  BAKING OXFORD, INC.

              
	 	 
	 	 
	
                By:      

              	
                By:   
                  /s/  Eugene
                  P. Malinowski     

              
	
                Name:      

              	
                Eugene
                  P. Malinowski

              
	
                Title:      

              	
                Treasurer

              
	 	 
	 	
                Each
                  with an address at:

                2801
                  Hunting Park Avenue

                Philadelphia,
                  PA 19129-1306

              

      

       

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

    

    

      
        	
                 

                Secondary
                  Term Note

              	 
	 	 
	
                $2,550,000

                 

              	
                [_______,
                  2005]

                 

              

      

      FOR
        VALUE RECEIVED, and
        intending to be legally bound, Undersigned, as defined below, promises to
        pay
        Citizens Bank of Pennsylvania, a Pennsylvania state chartered bank (“Bank”) or
        its order at 2001 Market Street, Suite 600, Philadelphia, Pennsylvania 19103,
        the sum of Two Million Five Hundred Fifty Thousand Dollars ($2,550,000),
        with
        interest on the outstanding balance from the date of this Note (“Note”)
        at the
        rate(s) (“Contractual
        Rate(s)”)
        specified herein, all as provided below. This Note is issued in connection
        with
        a Loan Agreement dated as of September 13, 2005 (the “Loan
        Agreement”)
        between
        Undersigned and Bank, and the other agreements and documents executed in
        connection therewith or referred to therein, the terms of which are incorporated
        herein by reference (as amended, modified or renewed from time to time,
        collectively the “Credit
        Documents”).
        Capitalized Terms not defined herein shall have the meaning ascribed to them
        in
        the Loan Agreement.

       

      So
        long
        as Bank is the holder hereof, Bank’s books and records shall be presumed, except
        in the case of manifest error, to accurately evidence at all times all amounts
        outstanding under this Note and the date and amount of each advance and payment
        made pursuant hereto.

       

      The
        prompt and faithful performance of all of Undersigned’s obligations hereunder,
        including without limitation time of payment, is of the essence of this
        Note.

       

      Undersigned
        hereby grants to Bank a security interest in, lien upon, and right of setoff
        against, all deposit accounts, credits, securities, moneys, or other property
        of
        Undersigned which may at any time be in the possession of, delivered to,
        or owed
        by Bank, including any proceeds or returned or unearned premiums of insurance,
        and the proceeds of all the foregoing property.

       

      1.  Interest
        Rate.  The
        amounts outstanding under this Note shall bear interest at the rate or rates
        set
        forth below as selected by Undersigned (each, a “Rate
        Option”):

       

      (i)  Prime
        Rate Option.
        A rate
        per annum equal to the (A) the Prime Rate plus
        (B) the Applicable Margin (as defined in the Credit Agreement referred to
        in the Loan Agreement) for Base Rate Loans (as defined in the Credit Agreement).
        For purposes hereof, the term “Prime
        Rate”
        means a
        per annum rate of interest, calculated on a 365 or 366 day, as the case may
        be,
        basis but charged on the actual number of days elapsed, equal to the rate
        of
        interest announced from time to time by Bank as its Prime Rate which rate
        is not
        necessarily the lowest interest rate charged by the Bank for loans, such
        Prime
        Rate to change from time to time as of the effective date of each change
        in the
        Prime Rate. If and when the Prime Rate changes, the rate of interest with
        respect to any advance to which the Prime Rate Option applies will change
        automatically without notice to Undersigned, effective on the date of any
        such
        change. There are no required minimum interest periods for advances bearing
        interest under the Prime Rate Option.

       

      (ii)  LIBOR
        Rate Option.
        A
        rate
        per annum equal to the sum of (A) the LIBOR Rate plus
        (B) the Applicable Margin for LIBOR Loans (as defined in the Credit
        Agreement) plus
        (C) ten (10) basis points (0.10%). Such rate per annum shall be computed on
        the basis of a year of 360 days for the actual number of days
        elapsed.

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      For
        purposes hereof, the following terms shall have the following
        meanings:

       

      “Business
        Day”
shall
        mean any day which is neither a Saturday or Sunday nor a legal holiday on
        which
        commercial banks are authorized or required to be closed in Philadelphia,
        Pennsylvania; (b) when such term is used to describe a day on which a borrowing,
        payment, prepaying, or repaying is to be made in respect of any LIBOR Rate
        Loan,
        any day which is: (i) neither a Saturday or Sunday nor a legal holiday on
        which
        commercial banks are authorized or required to be closed in New York City;
        and
        (ii) a London Banking Day; and (c) when such term is used to describe a day
        on
        which an interest rate determination is to be made in respect of any LIBOR
        Rate
        Loan, any day which is a London Banking Day.

       

      “Hedging
        Contracts”
means,
        interest rate swap agreements, interest rate cap agreements and interest
        rate
        collar agreements, or any other agreements or arrangements entered into between
        Undersigned and Bank and designed to protect Undersigned against fluctuations
        in
        interest rates or currency exchange rates.

       

      “Hedging
        Obligations”
means,
        with respect to Undersigned, all liabilities of Undersigned to Bank under
        Hedging Contracts. 

       

      “Interest
        Period”
means
        relative to any LIBOR Rate Loans initially, the period beginning on (and
        including) the date on which such LIBOR Rate Loan is made or continued as,
        or
        converted into, a LIBOR Rate Loan and ending on (but excluding) the day which
        numerically corresponds to such date one, two, three or six months thereafter
        (or, if such month has no numerically corresponding day, on the last Business
        Day of such month), in each case as Undersigned may select; and (ii) thereafter,
        each period commencing on the last day of the next preceding Interest Period
        applicable to such LIBOR Rate Loan and ending one, two, three or six months
        thereafter, as selected by Undersigned by irrevocable notice to Bank not
        less
        than two Business Days prior to the last day of the then current Interest
        Period
        with respect thereto; provided,
        however,
        that (a)
        Undersigned shall not be permitted to select Interest Periods to be in effect
        at
        any one time which have expiration dates occurring on more than three
        (3)
        different dates; (b) Interest Periods commencing on the same date for LIBOR
        Rate
        Loans comprising part of the same advance under this agreement shall be of
        the
        same duration; (c) Interest Periods for LIBOR Rate Loans in connection with
        which Undersigned has or may incur Hedging Obligations with Bank shall be
        of the
        same duration as the relevant periods set under the applicable Hedging
        Contracts; (d) if such Interest Period would otherwise end on a day which
        is not
        a Business Day, such Interest Period shall end on the next following Business
        Day unless such day falls in the next calendar month, in which case such
        Interest Period shall end on the first preceding Business Day; and (e) no
        Interest Period may end later than the Secondary Term Loan Maturity
        Date.

       

      “LIBOR
        Lending Rate”
means,
        relative to any LIBOR Rate Loan to be made, continued or maintained as, or
        converted into, a LIBOR Rate Loan for any Interest Period, a rate per annum
        determined pursuant to the following formula:

       

      LIBOR
        Lending Rate = LIBOR
        Rate

                      (1.00
        - LIBOR Reserve Percentage)

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      “LIBOR
        Rate”
means
        relative to any Interest Period for LIBOR Rate Loans, the offered rate for
        deposits of U.S. Dollars in an amount approximately equal to the amount of
        the
        requested LIBOR Rate Loan for a term coextensive with the designated Interest
        Period which the British Bankers’ Association fixes as its LIBOR rate and which
        appears on the Telerate Page 3750 as of 11:00 a.m. London time on the day
        which
        is two London Banking Days prior to the beginning of such Interest
        Period.

       

      “LIBOR
        Rate Interest Payment Date”
means
        relative to any LIBOR Rate Loan, having an Interest Period of three months
        or
        less, the last Business Day of such Interest Period, and as to any LIBOR
        Rate
        Loan having an Interest Period longer than three months, each Business Day
        which
        is three months, or a whole multiple thereof, after the first day of such
        Interest Period and the last day of such Interest Period.

       

      “LIBOR
        Rate Loan”
means
        any loan or advance the rate of interest applicable to which is based upon
        the
        LIBOR Rate.

       

      “LIBOR
        Reserve Percentage”
means,
        relative to any day of any Interest Period for LIBOR Rate Loans, the maximum
        aggregate (without duplication) of the rates (expressed as a decimal fraction)
        of reserve requirements (including all basic, emergency, supplemental, marginal
        and other reserves and taking into account any transitional adjustments or
        other
        scheduled changes in reserve requirements) under any regulations of the Board
        of
        Governors of the Federal Reserve System (the “Board”) or other governmental
        authority having jurisdiction with respect thereto as issued from time to
        time
        and then applicable to assets or liabilities consisting of “Eurocurrency
        Liabilities”, as currently defined in Regulation D of the Board, having a term
        approximately equal or comparable to such Interest Period.

       

      “London
        Banking Day”
means
        a
        day on which dealings in US dollar deposits are transacted in the London
        interbank market.

       

      If
        Bank
        shall have determined in its reasonable discretion that (a) US dollar deposits
        in the relevant amount and for the relevant period are not available to Bank
        in
        the London interbank market; (b) by reason of circumstances affecting Bank
        in
        the London interbank, adequate means do not exist for ascertaining the LIBOR
        Rate applicable hereunder to LIBOR Rate Loans of any duration, or (c) LIBOR
        no
        longer adequately reflects Bank’s cost of funding loans, then, upon notice from
        Bank to Undersigned, the obligations of Bank hereunder to make or continue
        any
        loans as, or to convert any loans into, LIBOR Rate Loans of such duration
        shall
        forthwith be suspended until Bank shall notify Undersigned that the
        circumstances causing such suspension no longer exist. Thereafter, until
        Bank
        notifies Undersigned that the circumstances giving rise to such suspension
        no
        longer exist, (a) the availability of the LIBOR Rate Option shall be suspended,
        and (b) the interest rate for all advances then bearing interest under the
        LIBOR
        Rate Option shall be converted at the expiration of the then current Interest
        Period(s) to the Prime Rate Option. If Bank shall determine (which determination
        shall, upon notice thereof to Undersigned be conclusive and binding on
        Undersigned) that the introduction of or any change in or in the interpretation
        of any law, rule, regulation or guideline, (whether or not having the force
        of
        law) makes it unlawful, or any central bank or other governmental authority
        asserts that it is unlawful, for Bank to make, continue or maintain any LIBOR
        Rate Loan as, or to convert any loan into, a LIBOR Rate Loan of a certain
        duration, the obligations of Bank to make, continue, maintain or convert
        into
        any such LIBOR Rate Loans shall, upon such determination, forthwith be suspended
        until Bank shall notify Undersigned that the circumstances causing such
        suspension no longer exist, and all LIBOR Rate Loans of such type shall

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

       

      automatically
        convert to the Prime Rate Option at the end of the then current Interest
        Periods
        with respect thereto or sooner, if required by such law or
        assertion.

       

      If
        any
        law, regulation, order, decree or guideline or interpretation or application
        thereof by any governmental authority charged with the interpretation or
        administration thereof or compliance by Bank with any request or directive
        of
        any governmental authority (whether or not having the force of law) shall
        either
        impose, modify or deem applicable any capital adequacy or similar requirement
        against assets (funded or contingent) of, or credits or commitments to extend
        credit extended by Bank and the result of any of the foregoing is to increase
        the cost to, reduce the income receivable by, or impose any expense (including
        loss of margin) upon Bank with respect to the Credit Documents, this Note,
        or
        the making, maintenance or funding of any part of the loans (or, in the case
        of
        capital adequacy or similar requirement, to have the effect of reducing the
        rate
        of return on Bank’s capital, taking into account Bank’s policies with regard to
        capital adequacy) by an amount which Bank deems to be material, Bank shall
        from
        time to time notify Undersigned of the amount determined in good faith by
        Bank
        (which determination shall be conclusive absent manifest error) to be necessary
        to compensate Bank for such increase, reduction or imposition. Such amount
        shall
        be due and payable by Undersigned to Bank ten (10) business days after such
        notice is given.

       

      2.  Default
        Rate; Late Charge.
        Upon the
        occurrence of any Event of Default (as defined below), at Bank’s option,
        interest shall accrue at a rate equal to two percent (2%) per annum above
        the
        Contractual Rate(s) specified (the “Default Rate”) until the earlier of (a) the
        date that such Event of Default has been cured, (b) until and including the
        date
        of maturity hereof. After maturity, whether by acceleration or otherwise,
        at
        Bank’s option,
        interest shall accrue at the Default Rate until all sums due hereunder are
        paid.
        Interest shall continue to accrue after the entry of judgment by confession
        or
        otherwise at the Default Rate until all sums due hereunder and/or under the
        judgment are paid. 

       

      If
        any
        payment (including without limitation any regularly scheduled payment, balloon
        payment and final payment) is not paid within 15 days after it is due,
        Undersigned will pay a late charge equal to 1% of the unpaid portion of the
        payment due, regardless of whether the payment due consists of principal
        and
        interest, principal only or interest only:

       

      Such
        late
        charge shall be in addition to any increase made to the Contractual Rate(s)
        applicable to the outstanding balance hereof as a result of maturity of this
        Note or otherwise, as well as in addition to any other applicable fees, charges
        and costs.

       

      3.  Payment
        of Interest.
        Undersigned shall pay accrued interest on the unpaid principal balance of
        this
        Note in arrears: (a) for the portion of advances bearing interest under the
        Prime Rate Option, on the last day of each calendar month during the term
        hereof
        commencing on [________,
        2005],
        (b) for amounts hereunder bearing interest under the LIBOR Rate Option, (i)
        for Interest Periods of one, two or three months, on the LIBOR Rate Interest
        Payment Date for such advance, or (ii) for Interest Periods of six months,
        every
        three months and (c) for all advances, at maturity, whether by acceleration
        of this Note or otherwise, and after maturity, on demand until paid in full.
        All
        outstanding principal and accrued interest hereunder shall be due and payable
        in
        full on the Secondary Term Loan Maturity Date. 

       

      If
        any
        payment under this Note is due on a day which is not a business day under
        the
        laws of the State where Bank’s office indicated above is located, such payment
        shall be made on the next succeeding business day and such extended time
        shall
        be included in the computation of interest. Undersigned hereby authorizes
        Bank,
        upon prior written notice to Undersigned to charge any deposit account of
        Undersigned at Bank for any payment due. Payments received will be applied
        first
        to charges, fees and 

       

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      expenses
        (including attorneys’ fees), second to any accrued but unpaid interest and
        lastly to the unpaid installment of principal in the reverse order of their
        scheduled maturity.

       

      4.  Payment
        of Principal.
        Principal
        shall be due and payable in fifty-nine (59) consecutive installments of in
        the
        amount of $14,166.66 each, commencing on [________,
        2005] and
        continuing on the last day of each calendar month thereafter. Notwithstanding
        the foregoing, all outstanding principal and accrued interest shall be due
        and
        payable in full on the earliest of (a) [_______],
        2010,
        (b) the Revolver Termination Date (as defined in the Credit Agreement) and
        (c)
        the date Bank ceases to be a Syndicate Lender (as defined in the Credit
        Agreement) under the Credit Agreement (such date, the “Secondary Term Loan
        Maturity Date”). 

       

      If
        any
        payment under this Note is due on a day which is not a business day under
        the
        laws of the State where Bank’s office indicated above is located, such payment
        shall be made on the next succeeding business day and such extended time
        shall
        be included in the computation of interest. Undersigned hereby authorizes
        Bank,
        upon prior written notice to Undersigned, to charge any deposit account of
        Undersigned at Bank for any payment due. Payments received will be applied
        first
        to charges, fees and expenses (including attorneys’ fees), second to any accrued
        but unpaid interest and lastly to the unpaid installment of principal in
        the
        reverse order of their scheduled maturity.

       

      5.  Interest
        Rate Election.
        Subject
        to the terms and conditions of this Note, at the end of each interest period
        applicable to any amounts hereunder, Undersigned may renew the Rate Option
        applicable to such amounts or convert such amounts to a different Rate Option;
        provided that,
        during
        any period in which any Event of Default (as hereinafter defined) has occurred
        and is continuing, any amounts bearing interest under the LIBOR Rate Option
        shall, at Bank’s sole discretion, be converted at the end of the applicable
        LIBOR Interest Period to the Prime Rate Option and the LIBOR Rate Option
        will
        not be available to Undersigned with respect to the conversion or renewal
        of any
        other amounts until such Event of Default has been cured by Undersigned or
        waived by Bank. Undersigned shall notify Bank of each election of a Rate
        Option,
        each conversion from one Rate Option to another, the amount of the portions
        hereunder to be allocated to each Rate Option and where relevant the Interest
        Periods therefor. In the case of converting to the LIBOR Rate Option, such
        notice shall be given by 10:00 a.m. (New York time) not less than two (2)
        nor
        more than five (5) Business Days prior to the commencement of any Interest
        Period. If no Interest Period is specified in any such notice for an amount
        that
        is to bear interest under the LIBOR Rate Option, Undersigned shall be deemed
        to
        have selected a Interest Period of one month’s duration. If no notice of
        election, conversion or renewal is timely received by Bank with respect to
        any
        amount hereunder, Undersigned shall be deemed to have elected the Prime Rate
        Option therefor. Any such election shall be promptly confirmed in writing
        by
        such method as Bank may require.

       

      6.  Covenants.
        Undersigned covenants and agrees that until all indebtedness evidenced hereby
        has been paid in full, Undersigned shall: (a) use the proceeds of the loan
        evidenced hereby only for the business purpose(s) specified in the Loan
        Agreement; (b) provide, upon request, financial or other information,
        documentation or certifications to Bank (including balance sheets and income
        statements), all in form and content reasonably satisfactory to Bank and
        (c) pay, upon demand by Bank, all amounts incurred by Bank in connection
        with any action or proceeding taken or commenced by Bank to enforce or collect
        this Note, including attorneys’ fees and costs and all costs of legal
        proceedings

       

      7.  Prepayment.
        Undersigned
        may prepay, in whole or in part, without penalty, any advance which is accruing
        interest under the Prime Rate Option. If Undersigned prepays (whether voluntary,
        on default or otherwise) all or any part of any advance which is accruing
        interest at the LIBOR Rate Option on other than the last day of the Interest
        Period, as applicable, Undersigned shall pay to Bank, in addition to all
        

       

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      other
        amounts due under this Note, the Prepayment Fee set forth herein. For LIBOR
        Rate
        Loans in connection with which Undersigned has or may incur Hedging Obligations,
        additional obligations may be associated with prepayment, in accordance with
        the
        terms and conditions of the applicable Hedging Contracts. Undersigned shall
        give
        Bank, no later than 10:00 a.m., New York City time, at least four (4) Business
        Days notice of any proposed prepayment, specifying the proposed date of payment
        and the principal amount to be paid. Each partial prepayment shall be in
        an
        integral multiple of $10,000 and accompanied by the payment of all charges
        outstanding on such loans and of all accrued interest on the principal repaid
        to
        the date of payment. Undersigned acknowledges that prepayment or acceleration
        of
        a LIBOR Rate Loan during an Interest Period shall result in Bank incurring
        additional costs, expenses and/or liabilities and that it is extremely difficult
        and impractical to ascertain the extent of such costs, expenses and/or
        liabilities. Therefore, all full or partial prepayments of LIBOR Rate Loans
        shall be accompanied by, and Undersigned hereby promises to pay, on each
        date
        any such loan is prepaid or the date all sums payable hereunder become due
        and
        payable, by acceleration or otherwise, in addition to all other sums then
        owing,
        an amount (“Prepayment Fee”) determined by Bank pursuant to the following
        formula: (a) the then current rate for United States Treasury securities
        (bills
        on a discounted basis shall be converted to a bond equivalent) with a maturity
        date closest to the end of the Interest Period, as to which prepayment is
        made,
subtracted
        from
        (b) the
        LIBOR Lending Rate plus the applicable margin applicable to the LIBOR Rate
        Loan
        being prepaid. If the result of this calculation is zero or a negative number,
        then there shall be no Prepayment Fee. If the result of this calculation
        is a
        positive number, then the resulting percentage shall be multiplied by the
        amount
        of the loan being prepaid. The resulting amount shall be divided by: (i)
        360 and
        multiplied by: (ii) the number of days remaining in the Interest Period as
        to
        which the prepayment is being made. Said amount shall be reduced to present
        value calculated by using the referenced United States Treasury securities
        rate
        and the number of days remaining on the Interest Period, as applicable, for
        the
        loan being prepaid. The resulting amount of these calculations shall be the
        Prepayment Fee.

       

      8.  Indemnities.
        In
        addition to the Prepayment Fee, Undersigned agrees to reimburse Bank (without
        duplication) for any increase in the cost to Bank, or reduction in the amount
        of
        any sum receivable by Bank, in respect, or as a result of: (a) any conversion
        or
        repayment or prepayment of the principal amount of any LIBOR Rate Loans on
        a
        date other than the scheduled last day of the Interest Period applicable
        thereto; (b) any loans not being made as LIBOR Rate Loans in accordance with
        the
        borrowing request thereof; (c) any LIBOR Rate Loans not being continued as,
        or
        converted into, LIBOR Rate Loans in accordance with the continuation/conversion
        notice thereof, or (d) any costs associated with marking to market any Hedging
        Obligations that (in the reasonable determination of Bank) are required to
        be
        terminated as a result of any conversion, repayment or prepayment of the
        principal amount of any LIBOR Rate Loan on a date other than the scheduled
        last
        day of the Interest Period applicable thereto;

       

      Bank
        shall promptly notify Undersigned in writing of the occurrence of any such
        event, such notice to state, in reasonable detail, the reasons therefor and
        the
        additional amount required fully to compensate Bank for such increased cost
        or
        reduced amount. Such additional amounts shall be payable by Undersigned to
        Bank
        within five days of its receipt of such notice, and such notice shall, in
        the
        absence of manifest error, be conclusive and binding on Undersigned. Undersigned
        understands, agrees and acknowledges the following: (i) Bank does not have
        any
        obligation to purchase, sell and/or match funds in connection with the use
        of
        LIBOR Rate as a basis for calculating the rate of interest on a LIBOR Rate
        Loan,
        (ii) the LIBOR Rate may be used merely as a reference in determining such
        rate,
        and (iii) Undersigned has accepted the LIBOR Rate as a reasonable and fair
        basis
        for calculating such rate, the Prepayment Fee, and other funding losses incurred
        by Bank. Undersigned further agrees to pay the Prepayment Fee and other funding
        losses, if any, whether or not Bank elects to purchase, sell and/or match
        funds.

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      9.  Taxes.
        All
        payments by Undersigned of principal of, and interest on, the LIBOR Rate
        Loans
        and all other amounts payable hereunder shall be made free and clear of and
        without deduction for any present or future income, excise, stamp or franchise
        taxes and other taxes, fees, duties, withholdings or other charges of any
        nature
        whatsoever imposed by any taxing authority, but excluding franchise taxes
        and
        taxes imposed on or measured by Bank’s net income or receipts (such non-excluded
        items being called “Taxes”). In the event that any withholding or deduction from
        any payment to be made by Undersigned hereunder is required in respect of
        any
        Taxes directly related to this Note pursuant to any applicable law, rule
        or
        regulation, then Undersigned will

       

      (a)  pay
        directly to the relevant authority the full amount required to be so withheld
        or
        deducted; 

       

      (b)  promptly
        forward to Bank an official receipt or other documentation satisfactory to
        Bank
        evidencing such payment to such authority; and 

       

      (c)  pay
        to
        Bank such additional amount or amounts as is necessary to ensure that the
        net
        amount actually received by Bank will equal the full amount Bank would have
        received had no such withholding or deduction been required.

       

      Moreover,
        if any Taxes are directly asserted against Bank with respect to any payment
        received by Bank hereunder, Bank may pay such Taxes and Undersigned will
        promptly pay such additional amount (including any penalties, interest or
        expenses) as is necessary in order that the net amount received by Bank after
        the payment of such Taxes (including any Taxes on such additional amount)
        shall
        equal the amount Bank would have received had not such Taxes been
        asserted.

       

      If
        Undersigned fails to pay any Taxes when due to the appropriate taxing authority
        or fails to remit to Bank the required receipts or other required documentary
        evidence, Undersigned shall indemnify Bank for any incremental Taxes, interest
        or penalties that may become payable by Bank as a result of any such failure.
        

       

      10.  Increased
        Costs.
        If on or
        after the date hereof the adoption of any applicable law, rule or regulation
        or
        guideline (whether or not having the force of law), 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 by Bank with any request or directive
        (whether or not having the force of law) of any such authority, central bank
        or
        comparable agency:

       

      (a)  shall
        subject Bank to any tax, duty or other charge with respect to its LIBOR Rate
        Loans or its obligation to make LIBOR Rate Loans, or shall change the basis
        of
        taxation of payments to Bank of the principal of or interest on its LIBOR
        Rate
        Loans or any other amounts due under this agreement in respect of its LIBOR
        Rate
        Loans or its obligation to make LIBOR Rate Loans (except for the introduction
        of, or change in the rate of, tax on the overall net income of the Bank or
        franchise taxes, imposed by the jurisdiction (or any political subdivision
        or
        taxing authority thereof) under the laws of which Bank is organized or in
        which
        Bank’s principal executive office is located); or 

       

      (b)  shall
        impose, modify or deem applicable any reserve, special deposit or similar
        requirement (including, without limitation, any such requirement imposed
        by the
        Board of Governors of the Federal Reserve System of the United States) against
        assets of, deposits with or for the account of, or credit extended by, Bank
        or
        shall impose on Bank or on the London interbank market any other condition
        affecting its LIBOR Rate Loans or its obligation to make LIBOR Rate
        Loans;

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      and
        the
        result of any of the foregoing is to increase the cost to Bank of making
        or
        maintaining any LIBOR Rate Loan, or to reduce the amount of any sum received
        or
        receivable by Bank under this Note with respect thereto, by an amount deemed
        by
        Bank to be material, then, within 15 days after demand by Bank, Undersigned
        shall pay to Bank such additional amount or amounts as will compensate Bank
        for
        such increased cost or reduction.

       

      11.  Events
        of Default.
        The
        occurrence of any of the following shall constitute an “Event of Default”
hereunder: (a) the
        nonpayment of any principal under this Note when due or the nonpayment of
        any
        interest, other indebtedness or other obligations under this Note within
        three
        (3) Business Days after the date when due; (b) the
        breach by any Obligor (defined as Undersigned and each surety or guarantor
        of
        any of Undersigned’s liabilities to Bank as well as any person or entity
        granting Bank a security interest in property to secure any indebtedness
        evidenced hereby) of any covenant or agreement contained in the Credit
        Documents, this Note, or in any separate security, guarantee or suretyship
        agreement between Bank and any Obligor,
        subject to any applicable notices or cure periods therein, the occurrence
        of any
        default hereunder or under the terms of any such agreement, or the discovery
        by
        Bank of any materially false or misleading representation made by any Obligor
        herein or in any such agreement or in any other information submitted to
        Bank by
        any Obligor; (c) any
        Event of Default (as defined in the Credit Agreement) under the Credit
        Agreement; (d) garnishment,
        tax assessment, attachment or taking by governmental authority or other creditor
        of any property of any Obligor which is in Bank’s possession or which
        constitutes security for any indebtedness evidenced hereby; or (e) the
        revocation, termination, cancellation, denial of liability, or the attempt
        of
        any of the foregoing, by any Obligor of any obligation or liability whatsoever
        of the Obligor to Bank, including without limitation any security, guarantee
        or
        suretyship agreement.

       

      12.  Acceleration;
        Remedies.
        Upon the
        occurrence of any Event of Default: (a) all
        amounts due under this Note, including the unpaid balance of principal and
        interest hereof, shall become immediately due and payable at the option of
        Bank,
        without any demand or notice whatsoever; and (b) Bank
        may immediately and without demand exercise any of its rights and remedies
        granted herein, under applicable law, or which it may otherwise have, against
        Undersigned or otherwise. Notwithstanding any provision to the contrary
        contained herein, upon the occurrence of an Event of Default as described
        in
        Section 7.1(g)(i) or 7.1(g)(ii) of the Credit Agreement, all amounts due
        under this Note, including without limitation the unpaid principal and interest
        hereof, shall become immediately due and payable, without any demand, notice,
        or
        further action by Bank whatsoever, and an action therefor shall immediately
        accrue.

       

      13.  Bank’s
        Rights.
        Undersigned hereby authorizes Bank, and Bank shall have the continuing right,
        at
        its sole option and discretion, to: (a) do
        anything which Undersigned is required but fails to do hereunder, and in
        particular Bank may, if Undersigned fails to do so, obtain and pay any premiums
        payable on any policy of insurance required to be obtained or maintained
        hereunder; (b) subject
        to the terms and conditions of any security documents, if applicable, direct
        any
        insurer to make payment of any insurance proceeds including any returned
        or
        unearned premiums, directly to Bank, and apply such moneys to any indebtedness
        or other amount evidenced hereby in such order or fashion as Bank may elect;
        and
(c) pay
        the proceeds of the loans evidenced by this Note to any or all of the
        Undersigned individually or jointly, or to such other persons as any of the
        Undersigned may direct and (d) add any amounts paid or incurred by Bank
        hereunder to the principal amount of the indebtedness evidenced by this
        Note

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      14.  Definitions;
        Miscellaneous Provisions. (a) Undersigned
        waives protest of all commercial paper at any time held by Bank on which
        Undersigned is in any way liable, notice of nonpayment at maturity of any
        and
        all accounts, and (except where requested hereby) notice of action taken
        by
        Bank; and hereby ratifies and confirms whatever Bank may do. Bank shall be
        entitled to exercise any right notwithstanding any prior exercise, failure
        to
        exercise or delay in exercising any such right. (b) If
        any provision hereof shall for any reason be held invalid or unenforceable,
        no
        other provision shall be affected thereby, and this Note shall be construed
        as
        if the invalid or unenforceable provision had never been a part of it. The
        descriptive headings of this Note are for convenience only and shall not
        in any
        way affect the meaning or construction of any provision hereof. (c) The
        rights and privileges of Bank contained in this Note shall inure to the benefit
        of its successors and assigns, and the duties of Undersigned shall bind all
        heirs, personal representatives, successors and assigns. (d) This
        Note shall in all respects be governed by the laws of the Commonwealth of
        Pennsylvania (except to the extent that federal law governs). (e)“Undersigned”
        refers individually and collectively to all makers of this Note. Undersigned
        shall each be jointly and severally bound by the terms hereof.

       

      [Signatures
        to Follow]

       

      

       

      
        
          
             

          

          
          

        

        
          9

          
            

          

        

        
          
          

          
            

             

          

        

      

      
        	
                Signatures

              

      

       

      

       

       

      Witness
        the due execution hereof intending to be legally bound as of the date first
        written above.

       

      
        	
                Attest:

              	
                TASTY
                  BAKING COMPANY

              
	 	 
	 	 
	
                By:      

              	
                By:      

              
	
                Name:      

              	
                David
                  S. Marberger

              
	
                Title:      

              	
                Senior
                  Vice President

              
	 	 
	
                Attest:

              	
                TASTYKAKE
                  INVESTMENT COMPANY

              
	 	 
	 	 
	
                By:      

              	
                By:      

              
	
                Name:      

              	
                Eugene
                  P. Malinowski

              
	
                Title:      

              	
                Treasurer

              
	 	 
	
                Attest:

              	
                TBC
                  FINANCIAL SERVICES, INC.

              
	 	 
	 	 
	
                By:      

              	
                By:      

              
	
                Name:      

              	
                Eugene
                  P. Malinowski

              
	
                Title:      

              	
                Treasurer

              
	 	 
	
                Attest:

              	
                TASTY
                  BAKING OXFORD, INC.

              
	 	 
	 	 
	
                By:      

              	
                By:      

              
	
                Name:      

              	
                Eugene
                  P. Malinowski

              
	
                Title:      

              	
                Treasurer

              
	 	 
	 	
                Each
                  with an address at:

                2801
                  Hunting Park Avenue

                Philadelphia,
                  PA 19129-1306

              

      

       

      

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

    

     

    

      
        	
                 

                Mortgage
                  Term Note

              	 

      

      

       

      
        	
                $2,150,000

                 

              	
                [________,
                  2005]

                 

              

      

      FOR
        VALUE RECEIVED, and
        intending to be legally bound, Undersigned, as defined below, promises to
        pay
        Citizens Bank of Pennsylvania, a Pennsylvania state chartered bank (“Bank”) or
        its order at 2001 Market Street, Suite 600, Philadelphia, Pennsylvania 19103,
        the sum of Two Million One Hundred Fifty Thousand Dollars ($2,150,000), with
        interest on the outstanding balance from the date of this Note (“Note”)
        at the
        rate(s) (“Contractual
        Rate(s)”)
        specified herein, all as provided below. This Note is issued in connection
        with
        a Loan Agreement dated as of September 13, 2005 (the “Loan Agreement”) between
        Undersigned and Bank, and the other agreements and documents executed in
        connection therewith or referred to therein, the terms of which are incorporated
        herein by reference and is secured by the collateral described therein (as
        amended, modified or renewed from time to time, collectively the “Credit
        Documents”).
        Capitalized Terms not defined herein shall have the meaning ascribed to them
        in
        the Loan Agreement.

       

      So
        long
        as Bank is the holder hereof, Bank’s books and records shall be presumed, except
        in the case of manifest error, to accurately evidence at all times all amounts
        outstanding under this Note and the date and amount of each advance and payment
        made pursuant hereto.

       

      The
        prompt and faithful performance of all of Undersigned’s obligations hereunder,
        including without limitation time of payment, is of the essence of this
        Note.

       

      Undersigned
        hereby grants to Bank a security interest in, lien upon, and right of setoff
        against, all deposit accounts, credits, securities, moneys, or other property
        of
        Undersigned which may at any time be in the possession of, delivered to,
        or owed
        by Bank, including any proceeds or returned or unearned premiums of insurance,
        and the proceeds of all the foregoing property.

       

      1.  Interest
        Rate.  The
        amounts outstanding under this Note shall bear interest at the rate or rates
        set
        forth below as selected by Undersigned (each, a “Rate
        Option”):

       

      (i)  Prime
        Rate Option.
        A rate
        per annum equal to the (A) the Prime Rate plus
        (B) the Applicable Margin (as defined in the Credit Agreement referred to
        in the Loan Agreement) for Base Rate Loans (as defined in the Credit Agreement).
        For purposes hereof, the term “Prime
        Rate”
        means a
        per annum rate of interest, calculated on a 365 or 366 day, as the case may
        be,
        basis but charged on the actual number of days elapsed, equal to the rate
        of
        interest announced from time to time by Bank as its Prime Rate which rate
        is not
        necessarily the lowest interest rate charged by the Bank for loans, such
        Prime
        Rate to change from time to time as of the effective date of each change
        in the
        Prime Rate. If and when the Prime Rate changes, the rate of interest with
        respect to any advance to which the Prime Rate Option applies will change
        automatically without notice to Undersigned, effective on the date of any
        such
        change. There are no required minimum interest periods for advances bearing
        interest under the Prime Rate Option.

       

      (ii)  LIBOR
        Rate Option.
        A
        rate
        per annum equal to the sum of (A) the LIBOR Rate plus
        (B) the Applicable Margin for LIBOR Loans (as defined in the Credit
        Agreement) plus
        (C) fifteen (15) basis points (0.15%). Such rate per annum shall be
        computed on the basis of a year of 360 days for the actual number of days
        elapsed.

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      For
        purposes hereof, the following terms shall have the following
        meanings:

       

      “Business
        Day”
shall
        mean any day which is neither a Saturday or Sunday nor a legal holiday on
        which
        commercial banks are authorized or required to be closed in Philadelphia,
        Pennsylvania; (b) when such term is used to describe a day on which a borrowing,
        payment, prepaying, or repaying is to be made in respect of any LIBOR Rate
        Loan,
        any day which is: (i) neither a Saturday or Sunday nor a legal holiday on
        which
        commercial banks are authorized or required to be closed in New York City;
        and
        (ii) a London Banking Day; and (c) when such term is used to describe a day
        on
        which an interest rate determination is to be made in respect of any LIBOR
        Rate
        Loan, any day which is a London Banking Day.

       

      “Hedging
        Contracts”
means,
        interest rate swap agreements, interest rate cap agreements and interest
        rate
        collar agreements, or any other agreements or arrangements entered into between
        Undersigned and Bank and designed to protect Undersigned against fluctuations
        in
        interest rates or currency exchange rates.

       

      “Hedging
        Obligations”
means,
        with respect to Undersigned, all liabilities of Undersigned to Bank under
        Hedging Contracts. 

       

      “Interest
        Period”
means
        relative to any LIBOR Rate Loans initially, the period beginning on (and
        including) the date on which such LIBOR Rate Loan is made or continued as,
        or
        converted into, a LIBOR Rate Loan and ending on (but excluding) the day which
        numerically corresponds to such date one, two, three or six months thereafter
        (or, if such month has no numerically corresponding day, on the last Business
        Day of such month), in each case as Undersigned may select; and (ii) thereafter,
        each period commencing on the last day of the next preceding Interest Period
        applicable to such LIBOR Rate Loan and ending one, two, three or six months
        thereafter, as selected by Undersigned by irrevocable notice to Bank not
        less
        than two Business Days prior to the last day of the then current Interest
        Period
        with respect thereto; provided,
        however,
        that (a)
        Undersigned shall not be permitted to select Interest Periods to be in effect
        at
        any one time which have expiration dates occurring on more than three (3)
        different dates; (b) Interest Periods commencing on the same date for LIBOR
        Rate
        Loans comprising part of the same advance under this agreement shall be of
        the
        same duration; (c) Interest Periods for LIBOR Rate Loans in connection with
        which Undersigned has or may incur Hedging Obligations with Bank shall be
        of the
        same duration as the relevant periods set under the applicable Hedging
        Contracts; (d) if such Interest Period would otherwise end on a day which
        is not
        a Business Day, such Interest Period shall end on the next following Business
        Day unless such day falls in the next calendar month, in which case such
        Interest Period shall end on the first preceding Business Day; and (e) no
        Interest Period may end later than the Initial Term Loan Maturity
        Date.

       

      “LIBOR
        Lending Rate”
means,
        relative to any LIBOR Rate Loan to be made, continued or maintained as, or
        converted into, a LIBOR Rate Loan for any Interest Period, a rate per annum
        determined pursuant to the following formula:

       

      LIBOR
        Lending Rate = LIBOR
        Rate

                      (1.00
        - LIBOR Reserve Percentage)

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      “LIBOR
        Rate”
means
        relative to any Interest Period for LIBOR Rate Loans, the offered rate for
        deposits of U.S. Dollars in an amount approximately equal to the amount of
        the
        requested LIBOR Rate Loan for a term coextensive with the designated Interest
        Period which the British Bankers’ Association fixes as its LIBOR rate and which
        appears on the Telerate Page 3750 as of 11:00 a.m. London time on the day
        which
        is two London Banking Days prior to the beginning of such Interest
        Period.

       

      “LIBOR
        Rate Interest Payment Date”
means
        relative to any LIBOR Rate Loan, having an Interest Period of three months
        or
        less, the last Business Day of such Interest Period, and as to any LIBOR
        Rate
        Loan having an Interest Period longer than three months, each Business Day
        which
        is three months, or a whole multiple thereof, after the first day of such
        Interest Period and the last day of such Interest Period.

       

      “LIBOR
        Rate Loan”
means
        any loan or advance the rate of interest applicable to which is based upon
        the
        LIBOR Rate.

       

      “LIBOR
        Reserve Percentage”
means,
        relative to any day of any Interest Period for LIBOR Rate Loans, the maximum
        aggregate (without duplication) of the rates (expressed as a decimal fraction)
        of reserve requirements (including all basic, emergency, supplemental, marginal
        and other reserves and taking into account any transitional adjustments or
        other
        scheduled changes in reserve requirements) under any regulations of the Board
        of
        Governors of the Federal Reserve System (the “Board”) or other governmental
        authority having jurisdiction with respect thereto as issued from time to
        time
        and then applicable to assets or liabilities consisting of “Eurocurrency
        Liabilities”, as currently defined in Regulation D of the Board, having a term
        approximately equal or comparable to such Interest Period.

       

      “London
        Banking Day”
means
        a
        day on which dealings in US dollar deposits are transacted in the London
        interbank market.

       

      If
        Bank
        shall have determined in its reasonable discretion that (a) US dollar deposits
        in the relevant amount and for the relevant period are not available to Bank
        in
        the London interbank market; (b) by reason of circumstances affecting Bank
        in
        the London interbank, adequate means do not exist for ascertaining the LIBOR
        Rate applicable hereunder to LIBOR Rate Loans of any duration, or (c) LIBOR
        no
        longer adequately reflects Bank’s cost of funding loans, then, upon notice from
        Bank to Undersigned, the obligations of Bank hereunder to make or continue
        any
        loans as, or to convert any loans into, LIBOR Rate Loans of such duration
        shall
        forthwith be suspended until Bank shall notify Undersigned that the
        circumstances causing such suspension no longer exist. Thereafter, until
        Bank
        notifies Undersigned that the circumstances giving rise to such suspension
        no
        longer exist, (a) the availability of the LIBOR Rate Option shall be suspended,
        and (b) the interest rate for all advances then bearing interest under the
        LIBOR
        Rate Option shall be converted at the expiration of the then current Interest
        Period(s) to the Prime Rate Option. If Bank shall determine (which determination
        shall, upon notice thereof to Undersigned be conclusive and binding on
        Undersigned) that the introduction of or any change in or in the interpretation
        of any law, rule, regulation or guideline, (whether or not having the force
        of
        law) makes it unlawful, or any central bank or other governmental authority
        asserts that it is unlawful, for Bank to make, continue or maintain any LIBOR
        Rate Loan as, or to convert any loan into, a LIBOR Rate Loan of a certain
        duration, the obligations of Bank to make, continue, maintain or convert
        into
        any such LIBOR Rate Loans shall, upon such determination, forthwith be suspended
        until Bank shall notify Undersigned that the circumstances causing such
        suspension no longer exist, and all LIBOR Rate Loans of such type shall

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      automatically
        convert to the Prime Rate Option at the end of the then current Interest
        Periods
        with respect thereto or sooner, if required by such law or
        assertion.

       

      If
        any
        law, regulation, order, decree or guideline or interpretation or application
        thereof by any governmental authority charged with the interpretation or
        administration thereof or compliance by Bank with any request or directive
        of
        any governmental authority (whether or not having the force of law) shall
        either
        impose, modify or deem applicable any capital adequacy or similar requirement
        against assets (funded or contingent) of, or credits or commitments to extend
        credit extended by Bank and the result of any of the foregoing is to increase
        the cost to, reduce the income receivable by, or impose any expense (including
        loss of margin) upon Bank with respect to the Credit Documents, this Note,
        or
        the making, maintenance or funding of any part of the loans (or, in the case
        of
        capital adequacy or similar requirement, to have the effect of reducing the
        rate
        of return on Bank’s capital, taking into account Bank’s policies with regard to
        capital adequacy) by an amount which Bank deems to be material, Bank shall
        from
        time to time notify Undersigned of the amount determined in good faith by
        Bank
        (which determination shall be conclusive absent manifest error) to be necessary
        to compensate Bank for such increase, reduction or imposition. Such amount
        shall
        be due and payable by Undersigned to Bank ten (10) business days after such
        notice is given.

       

      2.  Default
        Rate; Late Charge.
        Upon the
        occurrence of any Event of Default (as defined below), at Bank’s option,
        interest shall accrue at a rate equal to two percent (2%) per annum above
        the
        Contractual Rate(s) specified (the “Default Rate”) until the earlier of (a) the
        date that such Event of Default has been cured, (b) until and including the
        date
        of maturity hereof. After maturity, whether by acceleration or otherwise,
        at
        Bank’s option,
        interest shall accrue at the Default Rate until all sums due hereunder are
        paid.
        Interest shall continue to accrue after the entry of judgment by confession
        or
        otherwise at the Default Rate until all sums due hereunder and/or under the
        judgment are paid. 

       

      If
        any
        payment (including without limitation any regularly scheduled payment, balloon
        payment and final payment) is not paid within 15 days after it is due,
        Undersigned will pay a late charge equal to 1% of the unpaid portion of the
        payment due, regardless of whether the payment due consists of principal
        and
        interest, principal only or interest only:

       

      Such
        late
        charge shall be in addition to any increase made to the Contractual Rate(s)
        applicable to the outstanding balance hereof as a result of maturity of this
        Note or otherwise, as well as in addition to any other applicable fees, charges
        and costs.

       

      3.  Payment
        of Interest.
        Undersigned shall pay accrued interest on the unpaid principal balance of
        this
        Note in arrears: (a) for the portion of advances bearing interest under the
        Prime Rate Option, on the last day of each calendar month during the term
        hereof
        commencing on [___________,
        2005],
        (b) for amounts hereunder bearing interest under the LIBOR Rate Option for
        Interest Periods of one, two, three or six months, on the LIBOR Rate Interest
        Payment Date for such advance and (c) for all advances, at maturity,
        whether by acceleration of this Note or otherwise, and after maturity, on
        demand
        until paid in full. All outstanding principal and accrued interest hereunder
        shall be due and payable in full on the Maturity Date. 

       

      If
        any
        payment under this Note is due on a day which is not a business day under
        the
        laws of the State where Bank’s office indicated above is located, such payment
        shall be made on the next succeeding business day and such extended time
        shall
        be included in the computation of interest. Undersigned hereby authorizes
        Bank,
        upon prior notice to Undersigned, to charge any deposit account of Undersigned
        at Bank for any payment due. Payments received will be applied first to charges,
        fees and expenses

       

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

       (including
        attorneys’ fees), second to any accrued but unpaid interest and lastly to the
        unpaid installment of principal in the reverse order of their scheduled
        maturity.

       

      4.  Payment
        of Principal.
        Principal
        shall be due and payable in one hundred nineteen (119) consecutive installments
        of in the amount of $8,958.34 each, commencing on [_________,
        2005]
        and
        continuing on the last day of each calendar month thereafter. Notwithstanding
        the foregoing, all outstanding principal and accrued interest shall be due
        and
        payable in full on the earliest of (a) [_________,
        2015],
        (b) the
        Revolver Termination Date (as defined in the Credit Agreement) and (c) the
        date
        the Bank ceases to be a Syndicate Lender under the Credit Agreement (such
        date,
        the “Maturity Date”). 

       

      If
        any
        payment under this Note is due on a day which is not a business day under
        the
        laws of the State where Bank’s office indicated above is located, such payment
        shall be made on the next succeeding business day and such extended time
        shall
        be included in the computation of interest. Undersigned hereby authorizes
        Bank,
        upon prior written notice to Undersigned, to charge any deposit account of
        Undersigned at Bank for any payment due. Payments received will be applied
        first
        to charges, fees and expenses (including attorneys’ fees), second to any accrued
        but unpaid interest and lastly to the unpaid installment of principal in
        the
        reverse order of their scheduled maturity.

       

      5.  Interest
        Rate Election.
        Subject
        to the terms and conditions of this Note, at the end of each interest period
        applicable to any amounts hereunder, Undersigned may renew the Rate Option
        applicable to such amounts or convert such amounts to a different Rate Option;
        provided that,
        during
        any period in which any Event of Default (as hereinafter defined) has occurred
        and is continuing, any amounts bearing interest under the LIBOR Rate Option
        shall, at Bank’s sole discretion, be converted at the end of the applicable
        LIBOR Interest Period to the Prime Rate Option and the LIBOR Rate Option
        will
        not be available to Undersigned with respect to the conversion or renewal
        of any
        other amounts until such Event of Default has been cured by Undersigned or
        waived by Bank. Undersigned shall notify Bank of each election of a Rate
        Option,
        each conversion from one Rate Option to another, the amount of the portions
        hereunder to be allocated to each Rate Option and where relevant the Interest
        Periods therefor. In the case of converting to the LIBOR Rate Option, such
        notice shall be given by 10:00 a.m. (New York time) not less than two (2)
        nor
        more than five (5) Business Days prior to the commencement of any Interest
        Period. If no Interest Period is specified in any such notice for an amount
        that
        is to bear interest under the LIBOR Rate Option, Undersigned shall be deemed
        to
        have selected a Interest Period of one month’s duration. If no notice of
        election, conversion or renewal is timely received by Bank with respect to
        any
        amount hereunder, Undersigned shall be deemed to have elected the Prime Rate
        Option therefor. Any such election shall be promptly confirmed in writing
        by
        such method as Bank may require.

       

      6.  Covenants.
        Undersigned covenants and agrees that until all indebtedness evidenced hereby
        has been paid in full, Undersigned shall: (a) use the proceeds of the loan
        evidenced hereby only for the business purpose(s) specified to Bank at or
        prior
        to the execution hereof; (b) promptly notify Bank in writing of any change
        in
        its or their residence, Chief Executive Office, place
        of
        business or state of incorporation or organization; (c) purchase and maintain
        policies of insurance (including flood insurance, if required) to protect
        against such risks and casualties, and in such amounts, as shall be required
        by
        Bank and/or applicable law, which policies shall (1) be in form and substance
        reasonably satisfactory to Bank, (2) at Bank's option, designate Bank as
        loss
        payee and/or as additional insured, and/or contain a lender's loss payable
        endorsement, and (3) be (or certificates evidencing same shall be) deposited
        with Bank; (d) provide, upon request, financial or other information,
        documentation or certifications to Bank (including balance sheets and income
        statements), all in form and content reasonably satisfactory to Bank; (e)
        pay,
        upon demand by Bank, (1) all costs and fees pertaining to the filing of any
        financing, continuation or termination statements, mortgages, satisfaction
        pieces, judgments and any other type of document which 

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

       

      Bank
        deems reasonably necessary or desirable to be filed with regard to security
        interests which secure the indebtedness evidenced hereby, regardless of whether
        such security interests were granted by Undersigned, and (2) all reasonable
        and
        documented costs and expenses incurred by Bank in connection with any collateral
        securing this Note (including without limitation all advances made by Bank
        for
        taxes, levies, insurance, repairs to or maintenance of the collateral, appraisal
        or valuation of the collateral, and determination and monitoring of flood
        hazard
        status), regardless of whether such collateral is owned by Undersigned; and
        (f)
        pay, upon demand by Bank, all amounts incurred by Bank in connection with
        any
        action or proceeding taken or commenced by Bank to enforce or collect this
        Note,
        including attorneys' fees and costs and all costs of legal
        proceedings

       

      7.  Prepayment.
        Undersigned
        may prepay, in whole or in part, without penalty, any advance which is accruing
        interest under the Prime Rate Option. If Undersigned prepays (whether voluntary,
        on default or otherwise) all or any part of any advance which is accruing
        interest at the LIBOR Rate Option on other than the last day of the Interest
        Period, as applicable, Undersigned shall pay to Bank, in addition to all
        other
        amounts due under this Note, the Prepayment Fee set forth herein. For LIBOR
        Rate
        Loans in connection with which Undersigned has or may incur Hedging Obligations,
        additional obligations may be associated with prepayment, in accordance with
        the
        terms and conditions of the applicable Hedging Contracts. Undersigned shall
        give
        Bank, no later than 10:00 a.m., New York City time, at least four (4) Business
        Days notice of any proposed prepayment, specifying the proposed date of payment
        and the principal amount to be paid. Each partial prepayment shall be in
        an
        integral multiple of $10,000 and accompanied by the payment of all charges
        outstanding on such loans and of all accrued interest on the principal repaid
        to
        the date of payment. Undersigned acknowledges that prepayment or acceleration
        of
        a LIBOR Rate Loan during an Interest Period shall result in Bank incurring
        additional costs, expenses and/or liabilities and that it is extremely difficult
        and impractical to ascertain the extent of such costs, expenses and/or
        liabilities. Therefore, all full or partial prepayments of LIBOR Rate Loans
        shall be accompanied by, and Undersigned hereby promises to pay, on each
        date
        any such loan is prepaid or the date all sums payable hereunder become due
        and
        payable, by acceleration or otherwise, in addition to all other sums then
        owing,
        an amount (“Prepayment
        Fee”)
        determined by Bank pursuant to the following formula: (a) the then current
        rate
        for United States Treasury securities (bills on a discounted basis shall
        be
        converted to a bond equivalent) with a maturity date closest to the end of
        the
        Interest Period, as to which prepayment is made, subtracted
        from
        (b) the
        LIBOR Lending Rate plus the applicable margin applicable to the LIBOR Rate
        Loan
        being prepaid. If the result of this calculation is zero or a negative number,
        then there shall be no Prepayment Fee. If the result of this calculation
        is a
        positive number, then the resulting percentage shall be multiplied by the
        amount
        of the loan being prepaid. The resulting amount shall be divided by: (i)
        360 and
        multiplied by: (ii) the number of days remaining in the Interest Period as
        to
        which the prepayment is being made. Said amount shall be reduced to present
        value calculated by using the referenced United States Treasury securities
        rate
        and the number of days remaining on the Interest Period, as applicable, for
        the
        loan being prepaid. The resulting amount of these calculations shall be the
        Prepayment Fee.

       

      8.  Indemnities.
        In
        addition to the Prepayment Fee, Undersigned agrees to reimburse Bank (without
        duplication) for any increase in the cost to Bank, or reduction in the amount
        of
        any sum receivable by Bank, in respect, or as a result of: (a) any conversion
        or
        repayment or prepayment of the principal amount of any LIBOR Rate Loans on
        a
        date other than the scheduled last day of the Interest Period applicable
        thereto; (b) any loans not being made as LIBOR Rate Loans in accordance with
        the
        borrowing request thereof; (c) any LIBOR Rate Loans not being continued as,
        or
        converted into, LIBOR Rate Loans in accordance with the continuation/conversion
        notice thereof, or (d) any costs associated with marking to market any Hedging
        Obligations that (in the reasonable determination of Bank) are required to
        be
        terminated as a result of any conversion, repayment or prepayment of the
        principal amount of any LIBOR Rate Loan on a date other than the scheduled
        last
        day of the Interest Period applicable thereto;

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      Bank
        shall promptly notify Undersigned in writing of the occurrence of any such
        event, such notice to state, in reasonable detail, the reasons therefor and
        the
        additional amount required fully to compensate Bank for such increased cost
        or
        reduced amount. Such additional amounts shall be payable by Undersigned to
        Bank
        within five days of its receipt of such notice, and such notice shall, in
        the
        absence of manifest error, be conclusive and binding on Undersigned. Undersigned
        understands, agrees and acknowledges the following: (i) Bank does not have
        any
        obligation to purchase, sell and/or match funds in connection with the use
        of
        LIBOR Rate as a basis for calculating the rate of interest on a LIBOR Rate
        Loan,
        (ii) the LIBOR Rate may be used merely as a reference in determining such
        rate,
        and (iii) Undersigned has accepted the LIBOR Rate as a reasonable and fair
        basis
        for calculating such rate, the Prepayment Fee, and other funding losses incurred
        by Bank. Undersigned further agrees to pay the Prepayment Fee and other funding
        losses, if any, whether or not Bank elects to purchase, sell and/or match
        funds.

       

      9.  Taxes.
        All
        payments by Undersigned of principal of, and interest on, the LIBOR Rate
        Loans
        and all other amounts payable hereunder shall be made free and clear of and
        without deduction for any present or future income, excise, stamp or franchise
        taxes and other taxes, fees, duties, withholdings or other charges of any
        nature
        whatsoever imposed by any taxing authority, but excluding franchise taxes
        and
        taxes imposed on or measured by Bank’s net income or receipts (such non-excluded
        items being called “Taxes”). In the event that any withholding or deduction from
        any payment to be made by Undersigned hereunder is required in respect of
        any
        Taxes directly relating to this Note pursuant to any applicable law, rule
        or
        regulation, then Undersigned will

       

      (a)  pay
        directly to the relevant authority the full amount required to be so withheld
        or
        deducted; 

       

      (b)  promptly
        forward to Bank an official receipt or other documentation satisfactory to
        Bank
        evidencing such payment to such authority; and 

       

      (c)  pay
        to
        Bank such additional amount or amounts as is necessary to ensure that the
        net
        amount actually received by Bank will equal the full amount Bank would have
        received had no such withholding or deduction been required.

       

      Moreover,
        if any Taxes are directly asserted against Bank with respect to any payment
        received by Bank hereunder, Bank may pay such Taxes and Undersigned will
        promptly pay such additional amount (including any penalties, interest or
        expenses) as is necessary in order that the net amount received by Bank after
        the payment of such Taxes (including any Taxes on such additional amount)
        shall
        equal the amount Bank would have received had not such Taxes been
        asserted.

       

      If
        Undersigned fails to pay any Taxes when due to the appropriate taxing authority
        or fails to remit to Bank the required receipts or other required documentary
        evidence, Undersigned shall indemnify Bank for any incremental Taxes, interest
        or penalties that may become payable by Bank as a result of any such failure.
        

       

      10.  Increased
        Costs.
        If on or
        after the date hereof the adoption of any applicable law, rule or regulation
        or
        guideline (whether or not having the force of law), 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 by Bank with any request or directive
        (whether or not having the force of law) of any such authority, central bank
        or
        comparable agency:

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (a)  shall
        subject Bank to any tax, duty or other charge with respect to its LIBOR Rate
        Loans or its obligation to make LIBOR Rate Loans, or shall change the basis
        of
        taxation of payments to Bank of the principal of or interest on its LIBOR
        Rate
        Loans or any other amounts due under this agreement in respect of its LIBOR
        Rate
        Loans or its obligation to make LIBOR Rate Loans (except for the introduction
        of, or change in the rate of, tax on the overall net income of the Bank or
        franchise taxes, imposed by the jurisdiction (or any political subdivision
        or
        taxing authority thereof) under the laws of which Bank is organized or in
        which
        Bank’s principal executive office is located); or 

       

      (b)  shall
        impose, modify or deem applicable any reserve, special deposit or similar
        requirement (including, without limitation, any such requirement imposed
        by the
        Board of Governors of the Federal Reserve System of the United States) against
        assets of, deposits with or for the account of, or credit extended by, Bank
        or
        shall impose on Bank or on the London interbank market any other condition
        affecting its LIBOR Rate Loans or its obligation to make LIBOR Rate
        Loans;

       

      and
        the
        result of any of the foregoing is to increase the cost to Bank of making
        or
        maintaining any LIBOR Rate Loan, or to reduce the amount of any sum received
        or
        receivable by Bank under this Note with respect thereto, by an amount deemed
        by
        Bank to be material, then, within 15 days after demand by Bank, Undersigned
        shall pay to Bank such additional amount or amounts as will compensate Bank
        for
        such increased cost or reduction.

       

      11.  Events
        of Default.
        The
        occurrence of any of the following shall constitute an “Event of Default”
hereunder: (a) the
        nonpayment of any principal under this Note when due or the nonpayment of
        any
        interest, other indebtedness or other obligations under this Note within
        three
        (3) Business Days after the date when due; (b) the
        breach by any Obligor (defined as Undersigned and each surety or guarantor
        of
        any of Undersigned’s liabilities to Bank as well as any person or entity
        granting Bank a security interest in property to secure any indebtedness
        evidenced hereby) of any covenant or agreement contained in the Credit
        Documents, this Note, or in any separate security, guarantee or suretyship
        agreement between Bank and any Obligor,
        subject to any applicable notices or cure periods therein, the occurrence
        of any
        default hereunder or under the terms of such agreement, or the discovery
        by Bank
        of any materially false or misleading representation made by any Obligor
        herein
        or in any such agreement or in any other information submitted to Bank by
        any
        Obligor; (c) any
        Event of Default (as defined in the Credit Agreement) under the Credit
        Agreement; (d) material
        default by any Obligor under the terms of any lease of or mortgage on the
        premises where any property securing the indebtedness evidenced by this Note
        is
        located; (e)garnishment,
        tax assessment, attachment or taking by governmental authority or other creditor
        of any property of any Obligor which is in Bank’s possession or which
        constitutes security for any indebtedness evidenced hereby; or (f) the
        revocation, termination, cancellation, denial of liability, or the attempt
        of
        any of the foregoing, by any Obligor of any obligation or liability whatsoever
        of the Obligor to Bank, including without limitation any security, guarantee
        or
        suretyship agreement.

       

      12.  Acceleration;
        Remedies.
        Upon the
        occurrence of any Event of Default: (a) all
        amounts due under this Note, including the unpaid balance of principal and
        interest hereof, shall become immediately due and payable at the option of
        Bank,
        without any demand or notice whatsoever; and (b) Bank
        may immediately and without demand exercise any of its rights and remedies
        granted herein, under applicable law, or which it may otherwise have, against
        Undersigned or otherwise. Notwithstanding any provision to the contrary
        contained herein, upon the occurrence of an Event of Default as described
        in
        Section 7.1(g)(i) or 7.1(g)(ii) of the Credit Agreement, all amounts due
        under this Note, including without limitation the unpaid principal and interest
        hereof, shall become immediately due and payable, without any demand, notice,
        or
        further action by Bank whatsoever, and an action therefor shall immediately
        accrue.

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      13.  Bank’s
        Rights.
        Undersigned hereby authorizes Bank, and Bank shall have the continuing right,
        at
        its sole option and discretion upon prior notice to Undersigned, to:
(a) do
        anything which Undersigned is required but fails to do hereunder, and in
        particular Bank may, if Undersigned fails to do so, obtain and pay any premiums
        payable on any policy of insurance required to be obtained or maintained
        hereunder; (b) subject
        to the terms and conditions of the Mortgage, direct any insurer to make payment
        of any insurance proceeds including any returned or unearned premiums, directly
        to Bank, and apply such moneys to any indebtedness or other amount evidenced
        hereby in such order or fashion as Bank may elect; and (c) pay
        the proceeds of the loans evidenced by this Note to any or all of the
        Undersigned individually or jointly, or to such other persons as any of the
        Undersigned may direct and (d) add any amounts paid or incurred by Bank
        hereunder to the principal amount of the indebtedness evidenced by this
        Note

       

      14.  Definitions;
        Miscellaneous Provisions. (a) Undersigned
        waives protest of all commercial paper at any time held by Bank on which
        Undersigned is in any way liable, notice of nonpayment at maturity of any
        and
        all accounts, and (except where requested hereby) notice of action taken
        by
        Bank; and hereby ratifies and confirms whatever Bank may do. Bank shall be
        entitled to exercise any right notwithstanding any prior exercise, failure
        to
        exercise or delay in exercising any such right. (b) 
If
        any provision hereof shall for any reason be held invalid or unenforceable,
        no
        other provision shall be affected thereby, and this Note shall be construed
        as
        if the invalid or unenforceable provision had never been a part of it. The
        descriptive headings of this Note are for convenience only and shall not
        in any
        way affect the meaning or construction of any provision hereof. (c) The
        rights and privileges of Bank contained in this Note shall inure to the benefit
        of its successors and assigns, and the duties of Undersigned shall bind all
        heirs, personal representatives, successors and assigns. (d) This
        Note shall in all respects be governed by the laws of the Commonwealth of
        Pennsylvania (except to the extent that federal law governs). (e)Undersigned
        hereby irrevocably appoints Bank and each holder hereof as Undersigned's
        attorney-in-fact to endorse Undersigned's name to any draft or check which
        may
        be payable to Undersigned in order to collect the proceeds of any insurance
        or
        any returned or unearned premiums in respect of any policies of insurance
        required to be maintained hereunder. Undersigned hereby acknowledges that
        this
        appointment of Bank and each holder hereof as attorney-in-fact is irrevocable
        and is coupled with an interest. (f)Undersigned
        assigns to Bank all moneys which may become payable on any policy of insurance
        required to be maintained under this Note, including any returned or unearned
        premiums. (g)"Chief
        Executive Office" means the place
        from
        which the main part of the business operations of an entity is managed.
(h)“Undersigned”
        refers individually and collectively to all makers of this Note. Undersigned
        shall each be jointly and severally bound by the terms hereof.

       

      [Signatures
        to Follow]

       

      

       

      
        
          
             

          

          
          

        

        
          9

          
            

          

        

        
          
          

          
          

        

      

      
        	
                Signatures

              

      

       

      

       

       

      Witness
        the due execution hereof intending to be legally bound as of the date first
        written above.

       

      
        	
                Attest:

              	
                TASTY
                  BAKING COMPANY

              
	 	 
	 	 
	
                By:      

              	
                By:      

              
	
                Name:      

              	
                David
                  S. Marberger

              
	
                Title:      

              	
                Senior
                  Vice President

              
	 	 
	
                Attest:

              	
                TASTYKAKE
                  INVESTMENT COMPANY

              
	 	 
	 	 
	
                By:      

              	
                By:      

              
	
                Name:      

              	
                Eugene
                  P. Malinowski

              
	
                Title:      

              	
                Treasurer

              
	 	 
	
                Attest:

              	
                TBC
                  FINANCIAL SERVICES, INC.

              
	 	 
	 	 
	
                By:      

              	
                By:      

              
	
                Name:      

              	
                Eugene
                  P. Malinowski

              
	
                Title:      

              	
                Treasurer

              
	 	 
	
                Attest:

              	
                TASTY
                  BAKING OXFORD, INC.

              
	 	 
	 	 
	
                By:      

              	
                By:      

              
	
                Name:      

              	
                Eugene
                  P. Malinowski

              
	
                Title:      

              	
                Treasurer

              
	 	 
	 	
                Each
                  with an address at:

                2801
                  Hunting Park Avenue

                Philadelphia,
                  PA 19129-1306

              

      

       

      

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

    

     

    

    
      	
               

               

              Mortgage

            	 
	
              Pennsylvania
                - Commercial Property

            

    

    

     

    This
      Mortgage is made this ___ day of [_________,
      2005],
      by and
      from [___________],
      a
[___________],
      with a
      business address at 2801 Hunting Park Avenue, Philadelphia, Pennsylvania 19103
      (hereinafter called “Mortgagor”) to Citizens Bank of Pennsylvania, a
      Pennsylvania state chartered bank, with a business address at 2001 Market
      Street, Suite 600, Philadelphia, Pennsylvania 19103 (hereinafter called
“Mortgagee”). As used herein, the term “Mortgagor” refers individually and
      collectively to all Mortgagors, and all such persons shall be jointly and
      severally bound by the terms hereof.

     

    Whereas,
      Mortgagor, _______, ________, ________ and ________ and Mortgagee entered into
      Loan Agreement dated September 13, 2005 (the “Loan Agreement”) pursuant to which
      Mortgagee has made the Mortgage Term Loan (as defined in the Loan Agreement)
      to
      Mortgagor evidenced by the Mortgage Term Note dated as of even date herewith
      (the “Note”), which Note states a principal sum of Two Million One Hundred Fifty
      Thousand Dollars ($2,150,000) and evidences the Borrowers’ (as defined in the
      Loan Agreement) obligation to repay the loan made pursuant to the
      Note;

     

    NOW,
      THEREFORE,
      to
      secure the payment of all sums due or which may become due under said Note
      and
      all other obligations (including Hedge Obligations (as defined in the Note)),
      debts, dues, instruments, liabilities, advances, judgments, damages, losses,
      claims, contracts and choses in action, of whatever nature and however arising,
      owed to Mortgagee from Mortgagor under such Note, past, present or future,
      direct or indirect, absolute or contingent, voluntary or involuntary, now due
      or
      to become due, and any and all extensions or renewals thereof in whole or in
      part, whether owed by Mortgagor as drawer, maker, endorser, assignor, guarantor,
      surety, or otherwise, excepting those obligations (other than the obligations
      evidenced by the Note) subject to the disclosure requirements of Federal Reserve
      Board Regulation Z, 12 C.F.R. Section 226.1 et seq. (all of such obligations
      secured hereby, hereinafter called the “Obligations”), as well as to secure
      Mortgagor’s performance under this Mortgage, Mortgagor by these presents,
      intending to be legally bound, does grant, bargain, sell, convey and mortgage
      unto Mortgagee, its successors and assigns, the following property (the
“Mortgaged Property”)

     

    All
      those
      certain tracts of land situated in Philadelphia County, Pennsylvania and more
      particularly described in Exhibit “A”, attached hereto and made a part hereof
      (the “Land”);

     

    The
      buildings and improvements, streets, lanes, alleys, passages, ways, waters,
      watercourses, rights, liberties, privileges, hereditaments and appurtenances
      whatsoever thereunto belonging, or in any way appertaining (together with the
      Land, the “Real Estate”) and the reversions and remainders, rents, issues and
      profits thereof; and

     

    All
      Goods, including without limitation, Fixtures and Accessions, attached to or
      installed in or upon, the Real Estate or any plant or business situated thereon;
      all As-Extracted Collateral arising from the Land; all books and records
      evidencing or relating to the foregoing, including, without limitation, billing
      records of every kind and description, tenant lists, data storage and processing
      media, Software and related material, including computer programs, computer
      tapes, cards, disks and printouts, and including any of the foregoing which
      are
      in the possession of any affiliate or property manager; and all Proceeds of
      any
      of the above-described property. Capitalized terms contained in this paragraph
      without definition shall have the meanings ascribed to them in revised Article
      9
      of the Uniform Commercial Code as enacted by the Commonwealth of Pennsylvania
      and as amended from time to time (the “UCC”).

     

    To
      Have
      And To Hold
      same
      unto the said Mortgagee, its successors and assigns, Forever.

     

    Provided,
      However,
      that if
      the Obligations are paid in full, then the estate hereby granted shall be
      discharged.

     

    Mortgagor
      represents, warrants, covenants and agrees that:

     

     

    
      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

    

     

    First:  This
      Mortgage is also a security agreement under the UCC. Mortgagor grants, and
      Mortgagee shall have and may enforce, a security interest in all those property
      interests included in the Mortgaged Property which may be “personal property” to
      secure payment and performance of all Obligations. The recordation of this
      Mortgage shall also constitute a fixture filing in accordance with the
      provisions of the UCC. Mortgagor agrees to cooperate and join, at its expense,
      with Mortgagee in taking such steps as are necessary, in Mortgagee’s judgment,
      to perfect or continue the perfected status of the security interest granted
      hereunder, including, without limitation, the execution and delivery of
      financing statements, amendments thereto, and continuation statements. Mortgagee
      may, at any time and from time to time, file financing statements, continuation
      statements and amendments thereto that describe the Mortgaged Property and
      which
      contain any other information required by the UCC for the sufficiency or filing
      office acceptance of any financing statement, continuation statement or
      amendment, including whether Mortgagor is an organization, the type of
      organization and any organization identification number issued to Mortgagor.
      Mortgagor irrevocably appoints Mortgagee attorney-in-fact for Mortgagor to
      execute, deliver and file such financing statements, continuation statements
      and
      amendments. Inasmuch as the parties intend that this Mortgage shall, among
      other
      things, constitute a fixture filing, the parties declare that Mortgagor is
      the
      debtor with an address as set forth below Mortgagor’s signature, Mortgagee is
      the secured party with an address as set forth below, and the collateral shall
      constitute all Fixtures attached to the Real Estate.

     

    Second:  Mortgagor
      will keep and perform all of the covenants and agreements contained
      herein.

     

    Third:  Without
      prior written consent of Mortgagee, which consent may be withheld for any
      reason, Mortgagor shall not transfer, encumber or change legal or equitable
      title, ownership or control of all or part of the Mortgaged Property by sale,
      lease, mortgage, stock transfer, transfer of other ownership interests,
      operation of law or in any other manner, whether voluntarily or involuntarily.
      It is further understood and agreed that, if Mortgagee consents to any such
      transfer, Mortgagee may impose as a condition of such consent any condition
      which Mortgagee, in its sole judgment, deems appropriate.

     

    Fourth:  Mortgagor
      warrants that it owns fee simple title to the Mortgaged Property free and clear
      of all liens, claims and encumbrances except as set forth on Exhibit B hereto
      (“Permitted Encumbrances”), and that it has full right and authority to grant
      this Mortgage and to perform its obligations hereunder. Mortgagor covenants
      that
      the Mortgaged Property shall continue to be held free and clear of all liens,
      claims and encumbrances other than Permitted Encumbrances.

     

    Fifth:  Mortgagor
      will pay when due all taxes, assessments, levies and other charges on or against
      the Mortgaged Property (“Taxes”) which may attain priority over the lien of this
      Mortgage. If Mortgagor fails to do so, Mortgagee at its sole option may elect
      to
      pay such taxes, assessments, levies or other charges. At Mortgagee’s request,
      Mortgagor shall deliver written evidence of all such payments to Mortgagee.
      Notwithstanding the foregoing, Mortgagor may contest in good faith by
      appropriate legal proceedings the imposition or assessment of any such Taxes
      as
      long as such contest does not impair the lien of this Mortgage and Mortgagor
      has
      set aside adequate reserves with respect thereto.

     

    Sixth:  Mortgagor
      shall keep the Mortgaged Property in good repair, excepting only reasonable
      wear
      and tear. Mortgagor will permit Mortgagee’s authorized representatives to enter
      upon the Mortgaged Property at any reasonable time for the purpose of inspecting
      the condition of the Mortgaged Property. Without the prior written consent
      of
      Mortgagee, Mortgagor will not permit removal or demolition of improvements
      now
      or hereafter erected on the Mortgaged Property, nor will Mortgagor permit waste
      of the Mortgaged Property or alteration of improvements now or hereafter erected
      on the Mortgaged Property which would adversely affect its market value as
      determined by Mortgagee.

     

    Seventh:  In
      addition to the covenants and agreements made elsewhere in this Mortgage,
      Mortgagor further covenants and agrees with Mortgagee as follows:

     

    (a)  Except
      as
      previously disclosed by Mortgagor to Mortgagee in writing, the Mortgaged
      Property is and will continue to be free of Hazardous Substances (as hereinafter
      defined), the presence of which Mortgagor is required to report to any federal,
      state or local agency or entity or the presence of which is prohibited by any
      Environmental Law (as hereinafter defined);

     

     

    
      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

     

    (b)  Except
      as
      previously disclosed by Mortgagor to Mortgagee in writing, the ownership,
      operation or use of the Mortgaged Property by Mortgagor or Mortgagor’s
      tenant(s), as the case may be, does not require as of the date hereof, nor
      in
      the future will require, the handling, storage, location or discharge of
      Hazardous Substances in, on or under the Mortgaged Property, the presence of
      which Mortgagor or Mortgagor’s tenant(s) is required to report to any federal,
      state or local agency or entity or the presence of which is prohibited by any
      Environmental Law;

     

    (c)  Mortgagor
      and Mortgagor’s tenant(s), if any, at all times have operated and maintained the
      Mortgaged Property, and at all times will continue to operate and maintain
      the
      Mortgaged Property, in material compliance with all Environmental Laws and
      Environmental Permits (as hereinafter defined);

     

    (d)  Except
      as
      previously disclosed by Mortgagor to Mortgagee in writing, no pending or
      threatened proceeding, suit, investigation, allegation, or inquiry exists
      regarding any alleged violation of Environmental Laws or Environmental Permits
      with respect to the Mortgaged Property or of any alleged obligation to cleanup
      or remediate any Hazardous Substance in, on or under the Mortgaged Property,
      and
      Mortgagor shall notify Mortgagee within five (5) business days in writing upon
      becoming aware hereafter of any such proceeding, suit, investigation,
      allegation, or inquiry, setting forth the details thereof;

     

    (e)  To
      the
      best of Mortgagor’s knowledge there does not exist, nor will Mortgagor permit to
      exist, any event or condition on or with respect to the Mortgaged Property
      that
      requires or is likely to require Mortgagor under any Environmental Law to pay
      or
      expend funds by way of fines, judgments, damages, cleanup, remediation or the
      like; provided, however, that Mortgagor shall notify Mortgagee promptly in
      writing upon becoming aware hereafter of any such event or condition;
      and

     

    (f)  Upon
      request by Mortgagee, Mortgagor shall provide (at Mortgagor’s cost)
      certifications, documentation, copies of pleadings and other information
      regarding the above, all in form and content reasonably satisfactory to
      Mortgagee.

     

    Eighth:  Mortgagee
      and its agents and representatives shall have the right at any time (whether
      or
      not any Event of Default (as defined herein) has occurred, or if any of the
      Obligations is payable on demand, whether or not such demand has been made)
      and
      at its sole option and discretion, without notice, to enter and visit the
      Mortgaged Property for the purposes of observing the Mortgaged Property, taking
      and removing soil or groundwater samples, and conducting tests on any part
      of
      the Mortgaged Property, all at the cost of Mortgagor. Mortgagee is under no
      duty, however, to visit or observe the Mortgaged Property or to conduct tests,
      and any such acts by Mortgagee shall be solely for the purposes of protecting
      its security interests and preserving Mortgagee’s rights under the Note and
      other documents executed and delivered in connection with the Note. No site
      visit, observation, or testing by Mortgagee shall result in a waiver of any
      default of Mortgagor or impose any liability on Mortgagee. In no event shall
      any
      site visit, observation, or testing by Mortgagee be a representation that
      Hazardous Substances are or are not present in, on, or under the Mortgaged
      Property, or that there has been or shall be compliance with any Environmental
      Law. Neither Mortgagor nor any other party is entitled to rely on any site
      visit, observation, or testing by Mortgagee, nor on any statements,
      representations, or any other comments made by Mortgagee to Mortgagor or any
      other party with respect to any Hazardous Substances or any other adverse
      condition affecting the Mortgaged Property. Mortgagee owes no duty of care
      to
      protect Mortgagor or any other party against, or to inform Mortgagor or any
      other party of, any Hazardous Substances or any other adverse condition
      affecting the Mortgaged Property. Mortgagee shall not be obligated to disclose
      to Mortgagor or any other party any report or findings made as a result of,
      or
      in connection with, any site visit, observation, or testing by
      Mortgagee.

     

    Ninth:  Except
      to
      the extent arising from the gross negligence or willful misconduct of Mortgagee
      or its officers, directors, employees and agents, Mortgagor shall indemnify,
      defend and hold harmless Mortgagee, its employees, agents, officers and
      directors from and against any and all claims, demands, penalties, fines,
      liabilities, settlements, damages, costs and expenses of any kind whatsoever,
      including but not limited to, reasonable attorneys’ fees, all fees of
      environmental consultants and laboratory costs, arising out of or in any way
      relating to: (a) the release or threatened release, disposal or existence of
      any
      Hazardous Substances, on or affecting the Mortgaged Property; (b) any personal
      injury (including wrongful death) or property damage (real or personal) arising
      out of or related to such Hazardous Substances; (c) any lawsuit brought or
      threatened, settlement reached or governmental order issued relating to
      Hazardous Substances with respect to the Mortgaged Property; (d) any violation
      or alleged violation of laws, permits, licenses, orders, regulations,
      requirements or demands of government authorities or any 

     

     

    
      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

     

     

    policies
      or requirements of Mortgagee, which are based upon or in any way related to
      Hazardous Substances; or (e) the breach of any warranty, representation or
      covenant of Mortgagor contained herein or in any related loan document. This
      indemnity shall survive repayment of any Obligations or any judicial
      foreclosure, foreclosure by power of sale, deed-in-lieu of foreclosure, or
      transfer of the Mortgaged Property by Mortgagor or Mortgagee.

     

    The
      liability covered by these indemnity provisions shall include, but not be
      limited to, losses sustained by Mortgagee and/or any of its successors and
      assigns for: (a) amounts owing as Obligations including diminution in value
      of
      the Mortgaged Property, (b) amounts arising out of personal injury or death
      claims, (c) amounts charged to Mortgagee for any environmental or Hazardous
      Substances clean up costs and expenses, liens, or other such charges or
      impositions, (d) payment for reasonable attorneys’ fees and disbursements,
      expert witness fees, court costs, environmental tests and design studies, and
      (e) any other amounts expended by Mortgagee or its successors and assigns in
      connection with the subject matter of Paragraphs Seventh,
      Eighth
      and
Ninth.

     

    Tenth:  Mortgagor
      shall keep the Mortgaged Property insured against loss by fire, all other
      hazards contemplated by the term “extended coverage”, and such other risks and
      hazards as Mortgagee shall reasonably require, in such amounts as Mortgagee
      shall require, but never less than the amount required to pay the Obligations
      secured hereby. Mortgagor will purchase flood insurance as and to the extent
      required by law. The insurer or insurers will be chosen by Mortgagor, subject
      to
      approval by Mortgagee; and approval shall not be unreasonably withheld. All
      insurance policies shall contain mortgagee and loss payable clauses in favor
      of
      Mortgagee and shall be cancelable by the insurer only after prior written notice
      by the insurer to Mortgagee. Mortgagor shall deliver written evidence of all
      such insurance to Mortgagee.

     

    If
      Mortgagor fails to obtain and keep in force any required insurance or fails
      to
      pay the premiums on such insurance, Mortgagee at its sole option may elect
      to do
      so. In the event of loss, Mortgagor shall give prompt notice to the insurer
      and
      Mortgagee. Mortgagee at its option may elect to make proof of loss if Mortgagor
      does not do so promptly, and to take any action it deems necessary to preserve
      Mortgagor’s or Mortgagee’s rights under any insurance policy.

     

    Insurance
      proceeds shall be applied to restoration or repair of the Mortgaged Property
      or
      to reduction of the Obligations, as Mortgagee may determine in its sole but
      reasonable discretion. Mortgagor hereby appoints Mortgagee and its successors
      and assigns as Mortgagor’s attorney-in-fact to endorse Mortgagor’s name to any
      draft or check which may be payable to Mortgagor in order to collect such
      insurance proceeds; provided so long as no Event or Default exists, if the
      insurance proceeds are in an amount sufficient to restore the Mortgaged
      Property, as determined by the Mortgagee in its reasonable discretion, and
      a
      substantial portion of the business activity conducted on the Mortgaged Property
      prior to the casualty event can be conducted on the Mortgage Property during
      such restoration, as determined by Mortagee in its reasonable discretion,
      Mortgagee shall apply such insurance proceeds to such restoration.

     

    Eleventh:  Mortgagor
      hereby agrees to repay to Mortgagee on demand all sums which Mortgagee has
      elected to pay under Paragraphs Fifth
      and/or
Tenth,
      and any
      costs which Mortgagee has incurred in taking actions permitted by Paragraph
      Eighth
      with
      interest thereon at a per annum rate equal to the Contractual Rate(s) (as that
      term is defined in the Note), if any; and all such sums, as well as any amounts
      for which Mortgagor has agreed to indemnify Mortgagee under Paragraph Ninth,
      shall, together with interest thereon, until repaid to Mortgagee, be part of
      the
      Obligations and be secured hereby.

     

    Twelfth:  Mortgagor
      hereby assigns to Mortgagee all proceeds of any award in connection with any
      condemnation or other taking of the Mortgaged Property or any part thereof,
      or
      payment for conveyance in lieu of condemnation.

     

    Thirteenth:  Reserved.

     

    Fourteenth:  In
      order
      to further secure Mortgagee in the Event of Default, Mortgagor hereby assigns
      and transfers to Mortgagee, its successors and assigns, any and all leases
      on
      the Mortgaged Property or any part thereof, now existing or which may hereafter
      be made at any time, together with any and all rents, issues and profits arising
      from the Mortgaged Property under said leases or otherwise, without obligation
      of Mortgagee to perform or discharge any obligation, duty or liability under
      such leases, but with full authorization to collect all rents under the leases
      

     

     

    
      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    

     

    or
      otherwise and to take possession of and rent the Mortgaged Property after an
      Event of Default. Mortgagor covenants not to accept the payment of any rent
      paid
      more than thirty (30) days in advance.

     

    Fifteenth:  The
      occurrence of any of the following shall constitute an “Event of Default”
hereunder: (a) Mortgagor breaches any covenant or agreement contained
      herein, in the Loan Agreement or any of the Credit Documents (as defined in
      the
      Notes) subject to the applicable notices or cure periods; or (b) any
      representation or warranty contained herein or in the Credit Documents or
      otherwise made by Mortgagor in connection with this Mortgage or any of the
      Obligations proves to be false or misleading in any material respect; or (c)
      there occurs an Event of Default under the Credit Documents or any agreement
      evidencing, securing or otherwise executed and delivered by Mortgagor in
      connection with the Obligations or any portion thereof; or (d) there occurs
      an
      Event of Default for non-payment under the terms of any other mortgage or other
      instrument creating a lien on the Mortgaged Property (whether or not such lien
      is in favor of Mortgagee); or (e) a holder of any lien encumbering the Mortgaged
      Property or any portion thereof (whether such lien is junior or superior to
      the
      lien of this Mortgage) commences a foreclosure or any other proceeding to
      execute on such lien; or (f) Mortgagor fails to pay when due, any amount owing
      by Mortgagor pursuant to the terms hereof and such failure continues for 30
      days
      after written notice thereof by Mortgagee to Mortgagor, then
      in
      addition to exercising any rights which Mortgagee may have under the terms
      of
      any agreement securing repayment of, or relating to, any portion of the
      Obligations, or otherwise provided by law, Mortgagee may foreclose upon the
      Mortgaged Property by appropriate legal proceedings and sell the Mortgaged
      Property for the collection of the Obligations, together with costs of suit
      and
      attorneys’ fees. Mortgagor hereby forever waives and releases all errors in the
      said proceedings, waives stay of execution, the right of inquisition and
      extension of time of payment, agrees to condemnation of any property levied
      upon
      by virtue of any such execution, and waives all exemptions from levy and sale
      of
      any property that now is or hereafter may be exempted by law.

     

    Sixteenth:  The
      rights and remedies of Mortgagee as provided herein, or in any other agreement
      securing repayment of, or relating to, any portion of the Obligations, or
      otherwise provided by law, shall be cumulative and may be pursued singly,
      concurrently, or successively in Mortgagee’s sole discretion, and may be
      exercised as often as necessary; and the failure to exercise any such right
      or
      remedy shall in no event be construed as a waiver or release of the
      same.

     

    Seventeenth:  As
      used
      in this Mortgage: (a) “Environmental Law” means any federal, state or local
      environmental law, statute, regulation, rule, ordinance, court or administrative
      order or decree, or private agreement or interpretation, now or hereafter in
      existence, relating to the use, handling, collection, storage, treatment,
      disposal or otherwise of Hazardous Substances, or in any way relating to
      pollution or protection of the environment, including but not limited to: the
      Clean Air Act, 42 U.S.C. 7401 et
      seq.;
      the
      Comprehensive Environmental Response, Compensation and Liability Act of 1980,
      42
      U.S.C. 9601 et
      seq.;
      the
      Federal Water Pollution Control Act, 33 U.S.C. 1251 et
      seq.;
      the
      Hazardous Material Transportation Act, 49 U.S.C. 1801 et
      seq.;
      the
      Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. 136 et
      seq.;
      the
      Resource Conservation and Recovery Act of 1976, 42 U.S.C. 6901 et
      seq.;
      the
      Toxic Substances Control Act, 15 U.S.C. 2601 et
      seq.;
      all as
      amended. (b) “Environmental Permit” means any federal, state or local permit,
      license or authorization issued under or in connection with any Environmental
      Law. (c) “Hazardous Substances” includes petroleum and petroleum products,
      radioactive materials, asbestos or any materials or substances defined as or
      included in the definition of “hazardous wastes”, “hazardous substances”,
“hazardous materials”, “toxic substances”, “hazardous air pollutants”, and
“toxic pollutants”, as those terms are used in any Environmental Law, including
      any state or federal law or local ordinance relating to hazardous substances
      now
      or hereafter in existence, and in any regulations promulgated or may be
      promulgated thereunder.

     

    Eighteenth:  Mortgagee,
      without notice to Mortgagor, may deal with the Obligations and any collateral
      security therefor in such manner as Mortgagee may deem advisable and may accept
      partial payment for or settle, release, or compromise the Obligations, may
      substitute or release any collateral security, and may release and discharge
      from liability Mortgagor, all without impairing the estate granted hereby or
      the
      Obligations of Mortgagor hereunder.

     

    Nineteenth:  The
      covenants, conditions and agreements contained herein shall bind the heirs,
      personal representatives, successors and assigns of Mortgagor, and the rights
      and privileges contained herein shall inure to the successors and assigns of
      Mortgagee.

     

    Twentieth:  Mortgagor
      hereby agrees that all costs of suit and attorneys’ fees, as described in
      Paragraph Fifteenth, shall be secured hereby.

     

     

    
      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

    

     

    Twenty-first:  
      The
      formal and essential validity hereof shall be governed in all respects by the
      laws of the Commonwealth Pennsylvania. If any provision hereof shall for any
      reason be held invalid or unenforceable, no other provision shall be affected
      thereby, and this Mortgage shall be construed as if the invalid or unenforceable
      provision had never been part of it.

     

    Twenty-second:  
      If any
      amount advanced under the Note was used to purchase the Mortgaged Property,
      then
      it is intended that this Mortgage be a Purchase Money Mortgage under the
      provisions of 42 PA. C.S.A. § 8141.

     

    Twenty-third:  FOR
      THE PURPOSE OF OBTAINING POSSESSION OF THE MORTGAGED PROPERTY UPON THE
      OCCURRENCE OF ANY EVENT SPECIFIED IN CLAUSES (a) - (f) OF PARAGRAPH FIFTEENTH
      HEREOF, MORTGAGOR HEREBY AUTHORIZES AND EMPOWERS ANY ATTORNEY OF ANY COURT
      OF
      RECORD IN THE COMMONWEALTH OF PENNSYLVANIA OR ELSEWHERE AS ATTORNEY FOR
      MORTGAGOR AND ALL PERSONS CLAIMING UNDER OR THROUGH MORTGAGOR, TO CONFESS
      JUDGMENT IN EJECTMENT AND CONFESS JUDGMENT FOR RECOVERY OF POSSESSION OF THE
      MORTGAGED PROPERTY AND TO APPEAR FOR AND CONFESS JUDGMENT AGAINST MORTGAGOR,
      AND
      ALL PERSONS CLAIMING UNDER OR THROUGH MORTGAGOR IN FAVOR OF MORTGAGEE FOR
      RECOVERY BY MORTGAGEE OF POSSESSION THEREOF, FOR WHICH THIS MORTGAGE, OR A
      COPY
      THEREOF VERIFIED BY AFFIDAVIT, SHALL BE SUFFICIENT WARRANT; AND THEREUPON A
      WRIT
      OF POSSESSION MAY IMMEDIATELY ISSUE FOR POSSESSION OF THE MORTGAGED PROPERTY,
      WITHOUT ANY PRIOR WRIT OR PROCEEDING WHATSOEVER AND WITHOUT ANY STAY OF
      EXECUTION. IF FOR ANY REASON AFTER SUCH ACTION HAS BEEN COMMENCED IT SHALL
      BE
      DISCONTINUED, OR POSSESSION OF THE MORTGAGED PROPERTY SHALL REMAIN IN OR BE
      RESTORED TO MORTGAGOR, MORTGAGEE SHALL HAVE THE RIGHT FOR THE SAME OCCURRENCE
      OR
      ANY OTHER OCCURRENCE TO BRING ONE OR MORE FURTHER ACTIONS TO CONFESS JUDGMENT
      IN
      EJECTMENT AND CONFESS JUDGMENT FOR RECOVERY OF POSSESSION OF THE MORTGAGED
      PROPERTY. MORTGAGEE MAY BRING AN ACTION TO CONFESS JUDGMENT IN EJECTMENT AND
      TO
      CONFESS JUDGMENT FOR RECOVERY OF POSSESSION OF THE MORTGAGED PROPERTY BEFORE
      OR
      AFTER THE INSTITUTION OF PROCEEDINGS TO FORECLOSE THIS MORTGAGE OR TO ENFORCE
      ANY OF THE OBLIGATIONS, OR AFTER ENTRY OF JUDGMENT THEREON OR ON ANY OF THE
      OBLIGATIONS, OR AFTER A SHERIFF’S SALE OF THE MORTGAGED PROPERTY IN WHICH
      MORTGAGEE IS THE SUCCESSFUL BIDDER, IT BEING THE UNDERSTANDING OF THE PARTIES
      THAT THE AUTHORIZATION TO PURSUE SUCH PROCEEDINGS FOR OBTAINING POSSESSION
      IS AN
      ESSENTIAL PART OF THE REMEDIES FOR ENFORCEMENT OF THIS MORTGAGE, AND SHALL
      SURVIVE ANY EXECUTION SALE TO MORTGAGEE.

     

    BY
      AGREEING THAT MORTGAGEE MAY CONFESS JUDGMENT HEREUNDER MORTGAGOR, FOR ITSELF
      AND
      ANY OTHER PERSONS OR ENTITIES NOW OR HEREAFTER IN POSSESSION OF ALL OR ANY
      PART
      OF THE MORTGAGED PROPERTY, WAIVES THE RIGHT TO NOTICE IN A PRIOR JUDICIAL
      PROCEEDING TO DETERMINE THEIR RIGHTS AND LIABILITIES AND THE OPPORTUNITY TO
      RAISE ANY DEFENSE, SET OFF, COUNTERCLAIM OR OTHER CLAIM AGAINST SUCH ACTION
      BY
      MORTGAGEE.

     

    Twenty-fourth:  THIS
      MORTGAGE CONTAINS A POWER OF ATTORNEY COUPLED WITH AN INTEREST AND IS FOR THE
      MORTGAGEE. THIS MORTGAGE IS BEING EXECUTED IN CONNECTION WITH A LOAN OR OTHER
      FINANCIAL TRANSACTION FOR BUSINESS PURPOSES AND NOT PRIMARILY FOR PERSONAL,
      FAMILY OR HOUSEHOLD PURPOSES. MORTGAGEE, AS AGENT FOR MORTGAGOR UNDER THE POWER
      OF ATTORNEY, IS NOT A FIDUCIARY FOR THE MORTGAGOR. MORTGAGEE, IN EXERCISING
      ANY
      OF ITS RIGHTS OR POWERS PURSUANT TO THE POWER OF ATTORNEY, MAY DO SO FOR THE
      SOLE BENEFIT OF MORTGAGEE AND NOT FOR MORTGAGOR. THE PARTIES ACKNOWLEDGE AND
      AGREE THAT THE PROVISIONS OF TITLE 20, PENNSYLVANIA CONSOLIDATED STATUTES,
      SECTION 5601 ET SEQ. AS AMENDED (SPECIFICALLY INCLUDING ACT 39 OF 1999) SHALL
      NOT BE APPLICABLE TO ANY POWER OF ATTORNEY CONTAINED IN THIS
      MORTGAGE.

     

     

     

    
      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

    

     

    
      	
              Signatures

            

    

    Witness
      the due execution hereof.

     

    

    
      	 	 	 
	 	 	
              x

            
	 	 	
              By:

            	 
	 	 	 
	
              x

            	 	 
	 	 	
              x

            
	 	 	
              By:

            	 
	 	 	 
	 	 	 
	 	 	 
	 	 	
              Business
                Address:

            	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

    

    

    
      	
              Certificate
                of Residence of Mortgagee

            
	
              Citizens
                Bank of Pennsylvania, Mortgagee within named, hereby certifies that
                it has
                a place of business at 2001 Market Street, Suite 600, Philadelphia,
                PA
                19103, Attention: Legal Department.

            
	 	
              By:

            	 
	 	 	 
	 	
              x

            	 
	 	 	 

    

     

     

     

    

    
      
        
           

          
          

        

        
          7

          
            

          

        

        
          
          

        

      

    

    

    

    
      	
              Notarization
                (Corporation)

            

    

    

    
      	
              Commonwealth
                of   Pennsylvania

            	 
	 	 	 
	
              County of 
                Philadelphia

            	 

    

    

    On
      the
      _____________ day of _____________________________________, before me personally
      came ____________________________________________________, who being duly sworn,
      did acknowledge ______________ to be the ______________________ of
      ______________________________________, a ___________________________, and
      that
      ______________________ as such ___________________, being authorized to do
      so,
      executed the foregoing instrument on behalf of said _______________________
      for
      the purpose therein contained. In testimony whereof, I have hereunto subscribed
      my name.

     

    
      	 	 
	
              My
                Commission Expires:

            	
              Notary
                Public

            
	 	
              x

            

    

    

    

    
      	
              Recorder’s
                Acknowledgment

            
	
              Commonwealth
                of Pennsylvania

            	
              )

            	 	 
	 	
              )

            	
              SS.

            	 
	
              County
                of

            	
              )

            	 	 
	 	 	 	 
	 	 	 	 

    

    

    Recorded
      in the Office of the Recorder of Deeds in and for said County on the __________
      day of ______________________________, in Mortgage Book Volume ______________,
      Page _____________.

    

    Witness
      my hand
      and the seal of said office the day and year aforesaid.

    
      	
              Recorder

            	 	 
	 	 	 
	
              x

            	 	 

    

    

    

    
      
        
           

          
          

        

        
          8

          
            

          

        

        
          
          

        

      

    

    

    

    
      	 	 
	
              From:

            	
              [Insert]

            
	 	 
	 	 
	 
	 	 
	
              To:

            	 
	 	 
	 	 
	 	 
	 	 
	
              Citizens
                Bank of Pennsylvania

            
	 	 
	
              Recorder
                mail to:

            	 
	 	
              Two
                Commerce Square

            
	 	
              2001
                Market Street, 6th
                Floor

            
	 	
              Philadelphia,
                PA 19103-7053

            
	 	
              Attn:
                Mark A. Bomberger

            
	 	 
	 	 
	 	 

    

    

    

    
      
        
          
             

          

          
          

        

        
          9

          
            

          

        

        
          
          

          
          

        

      

    

    

    

    
      	
              Mortgage
                Exhibit A 

            

    

    

    This
      Exhibit A refers to that certain Mortgage dated [__________,
      2005] from
      [___________]
      Mortgagor(s)
      to Citizens Bank of Pennsylvania, as Mortgagee:

     

    

     

    

     

    

    
      
        
          
             

          

          
          

        

        
          10

          
            

          

        

        
          
          

          
          

        

      

    

    

    
      	
              Mortgage
                Exhibit B 

            

    

    Permitted
      Encumbrances

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]