Document:

ex10-2.htm

     

    EXHIBIT 10.2

     

    
      EXECUTION
        COPY

       

      

       

      U.S.
        $150,000,000

       

      CREDIT
        AGREEMENT

       

      Dated
        as
        of June 26, 2007

       

      Among

       

      OLIN
        CORPORATION

       

      as
        Borrower

       

      and

       

      THE
        BANKS
        NAMED HEREIN

       

      as
        Banks

       

      and

       

      CITIBANK,
        N.A.

       

      as
        Administrative Agent

       

      and

       

      BANK
        OF
        AMERICA, N.A.

       

      as
        Syndication Agent

       

      and

       

      WACHOVIA
        BANK, NATIONAL ASSOCIATION

       

      as
        Documentation Agent

       

      and

       

      CITIGROUP
        GLOBAL MARKETS INC.

       

      as
        Lead Arranger

       

       

      
        
           

        

        
          
          

          
            

          

        

        
          Table
            of Contents

        

      

       

      

      
        CREDIT
          AGREEMENT

         

        
          Dated
            as
            of June 26, 2007

           

        

      

      OLIN
        CORPORATION, a Virginia
        corporation (the "Borrower"), the banks (the "Banks") listed on
        the signature pages hereof and CITIBANK, N.A., as administrative agent (the
        "Agent") for the Banks, hereby agree as follows:

       

      ARTICLE
        I

       

      DEFINITIONS
        AND ACCOUNTING TERMS

       

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

       

      "Acquisition"
        means any
        acquisition by the Borrower or any of its Subsidiaries of all or substantially
        all of the capital stock of, or all or a substantial part of the assets of,
        or
        of a business unit or division of, any Person.

       

      "Advance"
        means an advance by a
        Lender to the Borrower pursuant to Section 2.02, and refers to a Base Rate
        Advance or a Eurodollar Rate Advance (each of which shall be a "Type" of
        Advance).

       

      "Affiliate"
        means, when used
        with respect to any Person, any other Person directly or indirectly controlling,
        controlled by or under common control with such Person.  The term
        "control" (including the terms "controlled by" or "under common control with")
        means the possession directly or indirectly of the power, whether or not
        exercised, to direct or cause the direction of the management and policies
        of
        any Person, whether through ownership of voting securities or by contract
        or
        otherwise.

       

      "Agent's
        Account" means the
        account of the Agent maintained by the Agent at Citibank at its office at
        388
        Greenwich Street, New York, New York 10013, Account No. 36852248,
        Attention:  Bank Loan Syndications.

       

      "Applicable
        Lending Office"
        means, with respect to each Lender, such Lender's Domestic Lending Office
        in the
        case of a Base Rate Advance, and such Lender's Eurodollar Lending Office
        in the
        case of a Eurodollar Rate Advance.

       

      "Applicable
        Margin" means, as of
        any date of determination, a rate per annum determined by reference to the
        Performance Level applicable on such date as set forth below:

       

      
        
          	
                  Performance

                  Level

                	
                  Applicable
                    Margin for

                  Base
                    Rate Advances

                	
                  Applicable
                    Margin for

                  Eurodollar
                    Rate Advances

                
	
                  I

                   

                	
                  0.000%

                   

                	
                  0.470%

                   

                

        

         

         

        
          
             

          

          
            
            

            
              

            

          

          
            Table
              of Contents

          

        

         

         

        
          	
                  II

                   

                	
                  0.000%

                   

                	
                  0.625%

                   

                
	
                  III

                   

                	
                  0.000%

                   

                	
                  0.725%

                   

                
	
                  IV

                   

                	
                  0.000%

                   

                	
                  0.825%

                   

                
	
                  V

                   

                	
                  0.000%

                   

                	
                  1.0250%

                   

                

        

        

        Provided,
          that the Applicable Margin
          for Eurodollar Rate Advances at each Performance Level shall be increased
          by
          0.125 % if any Advances are outstanding after (a) the Borrower has consummated
          a
          receivables securitization program or (b) the commitments under the Existing
          Credit Agreement have been increased to an aggregate of $160,000,000 or
          more.

         

        "Assignment
          and Acceptance"
          means an assignment and acceptance entered into by a Lender and an assignee,
          and
          accepted by the Agent, in substantially the form of Exhibit C hereto and
          otherwise in accordance with Article VIII.

         

        "Assumption
          Agreement" has the
          meaning specified in Section 2.04(c).

         

        "Base
          Rate" means, for any
          Interest Period or any other period, a fluctuating interest rate per annum
          as
          shall be in effect from time to time which rate per annum shall at all
          times be
          equal to the higher of:

         

        (a)     The
          rate of interest announced publicly by Citibank, N.A. in New York, New
          York,
          from time to time, as Citibank, N.A.'s base rate, or

         

        (b)     The
          sum (adjusted to the nearest 1/100 of one percent or, if there is no nearest
          1/100 of one percent, to the next higher 1/100 of one percent) of (i) 1/2
          of one
          percent per annum, plus (ii) the Federal Funds Rate.

         

        "Base
          Rate Advance" means an
          Advance which bears interest as provided in Section 2.06(a).

         

        "Borrowing"
          means a borrowing
          consisting of Advances of the same Type made on the same day by the
          Lenders.

         

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

         

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

         

         

        
          
             

          

          
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            Table
              of Contents

          

        

         

         

        "Change
          in Law" has the meaning
          specified in Section 2.10(c).

         

        "Commitment"
          means, with respect
          to any Bank at any time, the amount set forth opposite such Bank's name
          on the
          signature pages hereto under the caption "Commitment" or, if such Bank
          has
          entered into one or more Assignment and Acceptances, set forth for such
          Bank in
          the Register maintained by the Agent pursuant to Section 8.02(d) as such
          Bank's "Commitment", as such amount may be reduced at or prior to such
          time
          pursuant to Section 2.04.

         

        "Confidential
          Information" has
          the meaning specified in Section 9.11.

         

        "Consolidated
          EBITDA" means, for
          any period, Consolidated Net Income for such period (adjusted to exclude
          all
          extraordinary or unusual items and any gains or losses on sales of assets
          outside the ordinary course of business) plus, without duplication and to
          the extent deducted in calculating such Consolidated Net Income for such
          period,
          the sum of (a) income tax expense, (b) interest expense, amortization or
          writeoff of debt discount with respect to Indebtedness (including the Advances),
          plus, without duplication, interest-equivalent costs associated with any
          receivables securitization program (whether accounted for as interest expense
          or
          loss on the sale of receivables), (c) depreciation and amortization expense,
          (d)
          amortization of intangibles (including, but not limited to, goodwill) and
          organization costs, and (e) any other non-cash charges.  For the
          purposes of calculating Consolidated EBITDA for any Reference Period pursuant
          to
          any determination of the Consolidated Leverage Ratio, (x) Consolidated
          EBITDA of
          the Borrower shall include, without duplication, the Borrower's pro rata
          share
          of the "Consolidated EBITDA" of Sunbelt Chlor Alkali Partnership (determined
          by
          reference to the Borrower's actual ownership therein) and (y) if during
          such
          Reference Period the Borrower or any Subsidiary shall have made an Acquisition,
          Consolidated EBITDA for such Reference Period shall be calculated after
          giving
          pro forma effect thereto and any Indebtedness incurred or assumed in connection
          therewith as if such Acquisition occurred and such Indebtedness had been
          incurred or assumed on the first day of such Reference Period.

         

        "Consolidated
          Interest Coverage
          Ratio" means, for any Reference Period, the ratio of (a) Consolidated EBITDA
          for such Reference Period to (b) Consolidated Interest Expense for such
          Reference Period.

         

        "Consolidated
          Interest Expense"
          means, for any period, the sum of total interest expense (including that
          attributable to capitalized lease obligations) plus, without duplication,
          interest-equivalent costs associated with any receivables securitization
          program
          (whether accounted for as interest expense or loss on the sale of receivables),
          in each case of the Borrower and its Subsidiaries for such period with
          respect
          to all outstanding Indebtedness of the Borrower and its Subsidiaries (including
          all commission, discounts and other fees and charges accrued with respect
          to
          letters of credit, bankers’ acceptance financing and, without duplication, in
          respect to any receivables securitization program allocable to such period
          in
          accordance with GAAP), minus (in the case of net benefits) or plus (in
          the case
          of net costs) the net benefits or net costs under all Hedging Agreements
          in
          respect of Indebtedness of the Borrower and its Subsidiaries to the extent
          such
          net benefits or net costs are allocable to such period in accordance with
          GAAP.

         

         

        
          
             

          

          
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              of Contents

          

        

         

         

        "Consolidated
          Leverage Ratio"
          means, as at the last day of any Reference Period, the ratio of (a) Consolidated
          Total Debt on such date to (b) Consolidated EBITDA, for such Reference
          Period.  The Consolidated Leverage Ratio shall be calculated on the
          date on which the Borrower delivers to the Agent the financial statements
          required to be delivered pursuant to Section 5.01(i)(i) or (ii), as the
          case may
          be, and the certificate required to be delivered pursuant to Section 5.01(i)(iv)
          demonstrating such ratio.

         

        "Consolidated
          Net Income" means,
          for any period, the consolidated net income (or loss) of the Borrower and
          its
          Subsidiaries, determined on a consolidated basis in accordance with GAAP;
          provided that there shall be excluded (a) the income (or deficit) of any
          Person accrued prior to the date it becomes a Subsidiary of the Borrower
          or is
          merged into or consolidated with the Borrower or any of its Subsidiaries,
          (b)
          the income (or deficit) of any Person (other than a Subsidiary of the Borrower)
          in which the Borrower or any of its Subsidiaries has an ownership interest,
          except to the extent that any such income is actually received by the Borrower
          or such Subsidiary in the form of dividends or similar distributions and
          (c) the
          undistributed earnings of any Subsidiary of the Borrower to the extent
          that the
          declaration or payment of dividends or similar distributions by such Subsidiary
          is not at the time permitted by the terms of any Contractual Obligation
          (other
          than under any Loan Document) or any law applicable to such
          Subsidiary.

         

        "Consolidated
          Net Tangible
          Assets" means, at any date, the total assets of the Borrower and its
          Subsidiaries at such date, determined on a consolidated basis, minus (a)
          the
          consolidated current liabilities (excluding interest-bearing liabilities)
          of the
          Borrower and its Subsidiaries as of such date, (b) unamortized debt discount
          and
          expense, goodwill, trademarks, brand names, patents and other intangible
          assets,
          and (c) any write-up of the value of any assets (other than an allocation
          of
          purchase price in an acquisition) after December 31, 2006; all as determined
          in
          accordance with GAAP.

         

        "Consolidated
          Total Debt" means,
          at any date, the aggregate principal amount of all Indebtedness of the
          Borrower
          and its Subsidiaries at such date (including the Borrower's Indebtedness
          in
          respect of its Guarantee of the Guaranteed Secured Senior Notes due 2017,
          Series
          O, of Sunbelt Chlor Alkali Partnership), determined on a consolidated basis
          in
          accordance with GAAP.

         

        "Contractual
          Obligation" means,
          as to any Person, any provision of any security issued by such Person or
          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.

         

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

         

         

        
          
             

          

          
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              of Contents

          

        

         

         

        "Domestic
          Subsidiary" shall mean
          any Subsidiary organized under the laws of any State of the United States
          of
          America, substantially all of the assets of which are located, and substantially
          all of the business of which is conducted, in the United States of
          America.

         

        "Eligible
          Assignee" means (i) a
          Lender; (ii) an Affiliate of a Lender; and (iii) any other Person approved
          by
          the Agent and, unless an Event of Default has occurred and is continuing
          at the
          time any assignment is effected in accordance with Section 8.02, the Borrower;
          provided, however, that neither the Borrower nor any Affiliate of
          the Borrower shall qualify as an Eligible Assignee.

         

        "Environmental
          Laws" means any
          and all applicable federal, state, local and foreign statutes, laws, judicial
          decisions, regulations, ordinances, rules, judgments, orders, decrees,
          injunctions, permits, grants, franchises, licenses or governmental restrictions
          relating to (i) the effect of the environment on human health, (ii) the
          environment or (iii) emissions, discharges or releases of Hazardous Substances
          into the environment including, without limitation, ambient air, surface
          water,
          groundwater, or land, or otherwise relating to the effect on the environment
          of
          the manufacture, processing, distribution, use, treatment, storage, disposal,
          transport or handling of Hazardous Substances or the remediation
          thereof.

         

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

         

        "ERISA
          Affiliate" means any
          Person who for purposes of Title IV of ERISA is a member of the Borrower's
          controlled group, or under common control with the Borrower, within the
          meaning
          of Section 414 of the Internal Revenue Code of 1986, as amended from time
          to
          time, and the regulations promulgated and rulings issued
          thereunder.

         

        "ERISA
          Event" means (i) the
          occurrence of a reportable event, within the meaning of Section 4043 of
          ERISA,
          unless the 30-day notice requirement with respect thereto has been waived
          by the
          PBGC; (ii) the provision by the administrator of any Plan of a notice of
          intent
          to terminate such Plan, pursuant to Section 4041(a) (2) of ERISA (including
          any
          such notice with respect to a plan amendment referred to in Section 4041(e)
          of
          ERISA); (iii) the cessation of operations at a facility in the circumstances
          described in Section 4068(f) of ERISA; (iv) the withdrawal by the Borrower
          or an
          ERISA Affiliate from a Multiple Employer Plan during a plan year for which
          it
          was a substantial employer, as defined in Section 4001(a)(2) of ERISA;
          (v) the
          failure by the Borrower or any ERISA Affiliate to make a payment to a Plan
          required under Section 302(f)(1) of ERISA, which Section imposes a lien
          for
          failure to make required payments; (vi) the adoption of an amendment to
          a Plan
          requiring the provision of security to such Plan, pursuant to Section 307
          of
          ERISA; or (vii) the institution by the PBGC of proceedings to terminate
          a Plan,
          pursuant to Section 4042 of ERISA, or the occurrence of any event or condition
          which would constitute grounds under Section 4042 of ERISA for the termination
          of, or the appointment of a trustee to administer, a Plan.

         

         

        
          
             

          

          
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              of Contents

          

        

         

         

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

         

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

         

        "Eurodollar
          Rate" means, for the
          Interest Period for each Eurodollar Rate Advance comprising part of the
          same
          Borrowing, an interest rate per annum equal to the rate per annum (rounded
          upward to the nearest whole multiple of 1/16 of 1% per annum) appearing
          on
          Reuters Screen LIBOR01 Page (or any successor page) as the London interbank
          offered rate for deposits in U.S. dollars at approximately 11:00 A.M. (London
          time) two Business Days prior to the first day of such period for a term
          comparable to such period or, if for any reason such rate is not available,
          the
          average (rounded upward to the nearest whole multiple of 1/16 of 1% per
          annum,
          if such average is not such a multiple) of the rate per annum at which
          deposits
          in U.S. dollars are offered by the principal office of each of the Reference
          Banks in London, England to prime banks in the London interbank market
          at 10:00
          A.M. (New York time) two Business Days before the first day of such Interest
          Period in an amount substantially equal to such Reference Bank's Eurodollar
          Rate
          Advance comprising part of such Borrowing and for a period equal to such
          Interest Period.  If the Reuters Screen LIBOR01 Page (or any successor
          page) is unavailable, the Eurodollar Rate for such period for each such
          Advance
          comprising part of the same Borrowing shall be such average as determined
          by the
          Agent on the basis of applicable rates furnished to and received by the
          Agent
          from the Reference Banks two Business Days before the first day of such
          Interest
          Period, subject, however, to the provisions of Section
          2.08.

         

        "Eurodollar
          Rate Advance" means
          an Advance which bears interest as provided in Section 2.06(b).

         

        "Eurodollar
          Rate Reserve
          Percentage" of any Lender for the Interest Period for any Eurodollar Rate
          Advance means the reserve percentage applicable during such Interest Period
          (or
          if more than one such percentage shall be so applicable, the daily average
          of
          such percentages for those days in such Interest Period during which any
          such
          percentage shall be so applicable) under regulations issued from time to
          time by
          the Board of Governors of the Federal Reserve System (or any successor)
          for
          determining the maximum reserve requirement (including, without limitation,
          any
          emergency, supplemental or other marginal reserve requirement) for such
          Lender
          with respect to liabilities or assets consisting of or including Eurocurrency
          Liabilities having a term equal to such Interest Period.

         

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

         

         

        
          
             

          

          
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        "Existing
          Credit Agreement"
          means the Credit Agreement dated as of July 30, 2004, as amended, amended
          and
          restated, supplemented or otherwise modified from time to time, among the
          Borrower, the banks named therein and Citibank, N.A., as agent for said
          banks.

         

        "Facility
          Fee Rate" means, as of
          any date of determination, a rate per annum determined by reference to
          the
          Performance Level applicable on such date as set forth below:

         

        
          	
                  Performance
                    Level

                   

                	
                  Facility
                    Fee Rate

                   

                
	
                  I

                   

                	
                  0.080%

                   

                
	
                  II

                   

                	
                  0.125%

                   

                
	
                  III

                   

                	
                  0.150%

                   

                
	
                  IV

                   

                	
                  0.175%

                   

                
	
                  V

                   

                	
                  0.225%

                   

                

        

        

        "Federal
          Funds Rate" means, for
          any period, a fluctuating interest rate per annum equal for each day during
          such
          period to the weighted average of the rates on overnight Federal funds
          transactions with members of the Federal Reserve System arranged by Federal
          funds brokers, as published in Federal Reserve Statistical Release 

        H.15(519),
          for such day (or, if such day is not a Business Day, for the next preceding
          Business Day) by the Federal Reserve Bank of New York, or, if such rate
          is not
          so published for any day which is a Business Day, the average of the quotations
          for such day on such transactions received by the Agent from three Federal
          funds
          brokers of recognized standing selected by it.

         

        "Foreign
          Subsidiary" shall mean
          any Subsidiary other than a Domestic Subsidiary.

         

        "GAAP"
          is defined in Section
          1.03.

         

        "Guarantee"
          of or by any Person
          (the "guarantor") means any obligation, contingent or otherwise, of the
          guarantor guaranteeing or having the economic effect of guaranteeing any
          Indebtedness or other obligation of any other Person (the "primary
          obligor") in any manner, whether directly or indirectly, and including any
          obligation of the guarantor, direct or indirect, (a) to purchase or pay
          (or
          advance or supply funds for the purchase or payment of) such Indebtedness
          or
          other obligation or to purchase (or to advance or supply funds for the
          purchase
          of) any security for the payment thereof, (b) to purchase or lease property,
          securities or services for the purpose of assuring the owner of such
          Indebtedness or other obligation of the payment thereof, (c) to maintain
          working
          capital, equity capital or any other financial statement condition or liquidity
          of the primary obligor so as to enable the primary obligor to pay such
          Indebtedness or other obligation or (d) as an account party in respect
          of any
          letter of credit or letter of guaranty issued to support such Indebtedness
          or
          obligation; provided, that the term Guarantee shall not include
          endorsements for collection or deposit in the ordinary course of
          business.

         

         

        
          
             

          

          
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        "Hazardous
          Substances" means any
          toxic, radioactive, caustic or otherwise hazardous substance, material
          or waste,
          including petroleum, its derivatives, by-products and other hydrocarbons,
          in
          each case regulated by Environmental Law.

         

        "Hedging
          Agreement" means any
          interest rate protection agreement, foreign currency exchange agreement,
          commodity price protection agreement or other interest or currency exchange
          rate
          or commodity price hedging arrangement.

         

        "Indebtedness"
          of any Person
          means, without duplication, (a) all obligations of such Person for borrowed
          money or with respect to deposits or advances of any kind, (b) all
          obligations of such Person evidenced by bonds, debentures, notes or similar
          instruments, (c) all obligations of such Person upon which interest charges
          are
          customarily paid, excluding deferred compensation of officers and directors,
          (d)
          all obligations of such Person under conditional sale or other title retention
          agreements relating to property acquired by such Person, (e) all obligations
          of
          such Person in respect of the deferred purchase price of property or services
          (excluding current accounts payable incurred in the ordinary course of
          business), (f) all Indebtedness of others secured by (or for which the
          holder of
          such Indebtedness has an existing right, contingent or otherwise, to be
          secured
          by) any Lien on property owned or acquired by such Person, whether or not
          the
          Indebtedness secured thereby has been assumed, (g) all Guarantees by such
          Person
          of Indebtedness of others, (h) all Capital Lease Obligations of such Person
          and
          all obligations of such Person under synthetic leases, (i) all obligations,
          contingent or otherwise, of such Person as an account party in respect
          of
          letters of credit and letters of guaranty, other than letters of credit
          and
          letters of guaranty issued to support obligations (other than Indebtedness)
          incurred in the ordinary course of business, (j) all obligations, contingent
          or
          otherwise, of such Person in respect of bankers' acceptances and (k) all
          Invested Amounts.  The Indebtedness of any Person shall include the
          Indebtedness of any other entity (including any partnership in which such
          Person
          is a general partner) to the extent such Person is liable therefore as
          a result
          of such Person's ownership interest in or other relationship with such
          entity,
          except to the extent the terms of such Indebtedness provide that such Person
          is
          not liable therefor.

         

        "Indemnified
          Costs" has the
          meaning specified in Section 7.05(a).

         

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

         

        "Interest
          Election Request"
          means a request by the Borrower to convert or continue a Borrowing in accordance
          with Section 2.15.

         

        "Interest
          Period" means, for
          each Eurodollar Rate Advance comprising part of the same Borrowing, the
          period
          commencing on the date of such Advance (or on the effective date of any
          election
          applicable to such Borrowing pursuant to Section 2.15) and ending the last
          day
          of the period selected by the Borrower pursuant to the provisions
          below.  The duration of each such Interest Period shall be 1, 2, 3 or
          6 months or, with the consent of all the Lenders, nine or twelve months,
          in each
          case as the Borrower may select, upon notice received by the Agent not
          later
          than 11:00 A.M. (New York City time) on the third Business Day prior to
          the
          first day of such Interest Period; provided, however, that:

         

         

        
          
             

          

          
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        (A)           the
          Borrower may not select any Interest Period which ends after the Termination
          Date;

         

        (B)           Interest
          Periods commencing on the same date for Advances comprising part of the
          same
          Borrowing shall be of the same duration; and

         

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

         

        "Invested
          Amounts" means the
          amounts invested by investors that are not Affiliates of the Borrower in
          connection with a receivables securitization program and paid to the Borrower
          or
          any of its Subsidiaries, as reduced by the aggregate amounts received by
          such
          investors from the payment of receivables and applied to reduce such invested
          amounts.

         

        "Lenders"
          means the Banks listed
          on the signature pages hereof (until such Bank shall have assigned or had
          assumed all interests hereunder as provided in Sections 8.02 or 2.04(c))
          and each assignee or Assuming Bank that shall become a party hereto pursuant
          to
          Sections 8.02 or 2.04(c).

         

        "Lien"
          means any mortgage,
          pledge, security interest, encumbrance, lien or charge of any kind (including
          any conditional sale or other title retention agreement).

         

        "Loan
          Documents" means this
          Agreement and the Notes.

         

        "Margin
          Stock" shall have the
          meaning given such term under Regulation U issued by the Board of Governors
          of
          the Federal Reserve System.

         

        "Majority
          Lenders" means at any
          time Lenders at least a majority in interest of the then aggregate unpaid
          principal amount of the Advances owing to Lenders, or, if no such principal
          amount is then outstanding, Lenders having at least a majority in interest
          of
          the Commitments.

         

        "Multiemployer
          Plan" means a
          multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which
          the
          Borrower or any ERISA Affiliate is making or accruing an obligation to
          make
          contributions, or has within any of the preceding five plan years made
          or
          accrued an obligation to make contributions, such plan being maintained
          pursuant
          to one or more collective bargaining agreements.

         

         

        
          
             

          

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

         

        "Note"
          means a promissory note
          of the Borrower payable to the order of any Lender, in substantially the
          form of
          Exhibit A hereto, evidencing the aggregate Indebtedness of the Borrower
          to such
          Lender resulting from the Advances made by such Lender.

         

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

         

        "Officer's
          Certificate" means a
          certificate signed in the name of the Borrower by its President, one of
          its Vice
          Presidents, its Treasurer or its Controller.

         

        "PBGC"
          means the Pension Benefit
          Guaranty Corporation.

         

        "Performance
          Level" means, as of
          any date of determination, the level set forth below as then
          applicable:

         

        
          	
                   

                	
                  I 

                	
                  Consolidated
                    Leverage Ratio is less than or equal to
                    1.00:1.00.

                

        

        

        
          	 	
                  II

                	
                  Consolidated
                    Leverage Ratio is greater than 1.00:1.00 but less than or equal
                    to
                    1.50:1.00.

                

        

         

        
          	
                   

                	
                  III

                	
                  Consolidated
                    Leverage Ratio is greater than 1.50:1.00 but less than or equal
                    to
                    2.50:1.00.

                

        

         

        
          	
                   

                	
                  IV

                	
                  Consolidated
                    Leverage Ratio is greater than 2.50:1.00 but less than or equal
                    to
                    3.00:1.00.

                

        

         

        
          	
                   

                	
                  V

                	
                  Consolidated
                    Leverage Ratio is greater than
                    3.00:1.00.

                

        

         

        For
          purposes of this definition, the Performance Level shall be determined
          (i) from
          the date hereof, until adjusted pursuant to clause (ii) below, by reference
          to
          the Consolidated Leverage Ratio calculated for the Reference Period that
          would
          have ended March 31, 2007 had this Agreement then been in effect and (ii)
          as at
          the end of each Reference Period ended after the date hereof based upon
          the
          calculation of the Consolidated Leverage Ratio for such Reference
          Period.  The Applicable Margin, Facility Fee Rate and Utilization Fee
          Rate shall be adjusted (if necessary) upward or downward on the first day
          following delivery of the certificate referred to in Section
          5.01(i)(iv).

         

        "Permitted
          Encumbrances"
          means:

         

         

        
          
             

          

          
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        (a)           Liens
          imposed by law for taxes that are not yet due or are being contested in
          good
          faith by appropriate proceedings;

         

        (b)           carriers',
          warehousemen's, mechanics', materialmen's, repairmen's and other like Liens
          imposed by law, arising in the ordinary course of business and securing
          obligations that are not overdue by more than 30 days or are being contested
          in
          good faith by appropriate proceedings;

         

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

         

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

         

        (e)           judgment
          liens in respect of judgments that do not constitute an Event of Default
          under
          Section 6.01(f); and

         

        (f)           easements,
          zoning restrictions, rights-of-way and similar encumbrances on real property
          imposed by law or arising in the ordinary course of business that do not
          secure
          any monetary obligations and do not materially detract from the value of
          the
          affected property or interfere with the ordinary conduct of business of
          the
          Borrower or any Subsidiary;

         

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

         

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

         

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

         

        "Pro
          Rata Share" of any amount
          means, with respect to any Lender at any time, the product of such amount
          times a fraction the numerator of which is the amount of such Lender's
          Commitment at such time (or, if the Commitments shall have been terminated
          pursuant to Section 2.04 or 6.01, such Lender's Commitment as in effect
          immediately prior to such termination) and the denominator of which is
          the
          aggregate amount of all Commitments at such time (or, if the Commitments
          shall
          have been terminated pursuant to Section 2.04 or 6.01, the aggregate amount
          of all Commitments as in effect immediately prior to such
          termination).

         

        "Reference
          Banks" means
          Citibank, N.A., Bank of America, N.A. and Wachovia Bank, National
          Association.

         

         

        
          
             

          

          
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        "Reference
          Period" means any
          period of four consecutive fiscal quarters of the Borrower.

         

        "Register"
          has the meaning
          specified in Section 8.02(d).

         

        "Regulation
          FD" has the meaning
          specified in Section 9.11.

         

        "Significant
          Subsidiary" means
          each Subsidiary, but excludes any Subsidiary the United States dollar value
          (or
          equivalent thereof) of whose assets is less than 5% of the total assets
          of the
          Borrower and the Subsidiaries, on a consolidated basis.

         

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

         

        "Subsidiary"
          means, as at any
          particular time, any Person controlled by the Borrower the accounts of
          which
          would be consolidated with those of the Borrower in the Borrower's consolidated
          financial statements if such financial statements were to be prepared at
          such
          time in accordance with GAAP.

         

        "Tax-Exempt
          Financing" means a
          transaction with a governmental unit or instrumentality which involves
          (i) the
          issuance by such governmental unit or instrumentality to Persons other
          than the
          Borrower or a Subsidiary of bonds or other obligations on which the interest
          is
          exempt from Federal income taxes under Section 103 of the Internal Revenue
          Code
          and the proceeds of which are applied to finance or refinance the cost
          of
          acquisition of equipment or facilities of the Borrower or any of its
          subsidiaries, and (ii) participation in the transaction by the Borrower
          or a
          Subsidiary in any manner permitted by this Agreement.

         

        "Termination
          Date" means (i)
          June 24, 2008 or (ii) the earlier date on which the termination in whole
          of the
          Commitments occurs pursuant to Section 2.04 or 6.01.

         

        "Type"
          shall have the meaning
          given such term in the definition of Advance.

         

        "Unused
          Commitment" means, with
          respect to each Lender at any time, (a) such Lender's Commitment at such
          time
minus (b) the aggregate principal amount of all Advances made by such
          Lender (in its capacity as a Lender) and outstanding at such time.

         

        "Usage"
          means, at any time, the
          sum of the aggregate principal amount of the Advances then
          outstanding.

         

        "Utilization
          Fee Rate" means,
          for any date on which the aggregate Usage exceeds 50% of the aggregate
          Commitments, a rate per annum determined by reference to the Performance
          Level
          applicable on such date as set forth below:

         

         

        
          
             

          

          
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                  Performance

                  Level

                   

                	
                  Utilization
                    Fee Rate

                   

                
	
                  I

                   

                	
                  0.075%

                   

                
	
                  II

                   

                	
                  0.125%

                   

                
	
                  III

                   

                	
                  0.125%

                   

                
	
                  IV

                   

                	
                  0.125%

                   

                
	
                  V

                   

                	
                  0.250%

                   

                

        

        

        "Voting
          Rights" means, as to any
          corporation or any other entity, ordinary voting power (whether associated
          with
          outstanding common stock or outstanding preferred stock, or both, or other
          outstanding equity interests, as applicable) to elect members of the Board
          of
          Directors of such corporation or other entity (irrespective of whether
          or not at
          the time capital stock of any class or classes of such corporation or entity
          shall or might have voting power or additional voting power upon the occurrence
          of any contingency).

         

        "Wholly
          Owned" means, with
          respect to any corporation or other entity, a corporation or other entity
          of
          which 100% of the Voting Rights are at the time directly or indirectly
          owned by
          the Borrower, by the Borrower and one or more other Wholly Owned Subsidiaries,
          or by one or more other Wholly Owned Subsidiaries.

         

        "Withdrawal
          Liability" shall
          have the meaning given such term under Part I of Subtitle E of Title IV
          of
          ERISA.

         

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

         

        (b)           In
          this Agreement and the other Loan Documents each reference to a year shall
          be a
          reference to the twelve consecutive months beginning January 1 in such
          year and
          ending December 31 in such year and each reference to a quarter shall be
          a
          reference to one of the three consecutive month periods beginning January
          1,
          April 1, July 1 or October 1, in each year.

         

        SECTION
          1.03.  Accounting Terms.  All
          accounting terms not specifically defined herein shall be construed in
          accordance with GAAP.  "GAAP" shall mean generally accepted
          accounting principles as in effect from time to time, applied on a basis
          consistent with the most recent certified consolidated financial statements
          of
          the Borrower and its Subsidiaries delivered to the Lenders, except that
          if the
          Borrower notifies the Agent that the Borrower requests an amendment to
          any
          provision hereof to eliminate the effect of a change occurring after the
          date of
          this Agreement in GAAP or the application thereof on the operation of such
          provision (or if the Agent notifies the Borrower that the Majority Lenders
          request an amendment to any provision hereof for such purpose), regardless
          of
          whether any such notice is given before or after such change in GAAP or
          in the
          application thereof, then such provision shall be construed and interpreted
          on
          the basis of GAAP as in effect and applied immediately before such change
          shall
          have become effective until such notice shall have been withdrawn or such
          provision amended in accordance with Section 9.01.

         

         

        
          
             

          

          
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        ARTICLE
          II

         

        AMOUNTS
          AND TERMS OF THE ADVANCES

         

                        SECTION
          2.01.  The Advances.  Each Lender
          severally agrees, on the terms and conditions hereinafter set forth, to
          make
          Advances to the Borrower from time to time on any Business Day during the
          period
          from the date hereof until the Termination Date in an aggregate amount
          not to
          exceed at any time such Lender's Unused Commitment.  Each Borrowing
          shall be in an aggregate amount not less than $10,000,000 or an integral
          multiple of $1,000,000 in excess thereof and shall consist of Advances
          of the
          same Type made on the same day by the Lenders ratably according to their
          respective Commitments.  Within the limits of each Lender's
          Commitment, the Borrower may borrow, repay pursuant to Section 2.05 or
          prepay
          pursuant to Section 2.09(b), and reborrow, prior to the Termination Date,
          under
          this Section 2.01.

         

                        SECTION
          2.02.  Making the
          Advances.  (i)(A)  Each Borrowing shall be made on
          notice, given not later than 11:00 A.M. (New York City time), (x) in the
          case of
          Eurodollar Rate Advances, on the third Business Day prior to the date of
          the
          proposed Borrowing and (y) in the case of Base Rate Advances, on the day
          of the
          proposed Borrowing, by the Borrower to the Agent, which shall give to each
          Lender prompt notice thereof by telecopier.  Each such notice of a
          Borrowing (a "Notice of Borrowing") shall be by telephone, confirmed
          immediately in writing, in substantially the form of Exhibit B-1 hereto,
          specifying therein the requested (I) date of such Borrowing, (II) Type
          of
          Advances comprising such Borrowing, (III) aggregate amount of such Borrowing,
          and (IV) in the case of Eurodollar Rate Advances, Interest Period for each
          such
          Advance.  Each Lender shall, before 1:00 P.M. (New York City time) on
          the date of such Borrowing make available for the account of its Applicable
          Lending Office to the Agent at the Agent's Account, in same day funds,
          such
          Lender's ratable portion of such Borrowing.  After the Agent's receipt
          of such funds and upon fulfillment of the applicable conditions set forth
          in
          Article III, the Agent will make such funds available to the Borrower at
          the
          Agent's address referred to in Section 8.02.

         

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

         

        (ii)           Anything
          in subsection (i) above to the contrary notwithstanding,

         

        (A)           if
          any Lender shall, at least one Business Day before the date of any requested
          Borrowing, notify the Agent (with a copy to the Borrower) that the introduction
          of or any change in or in the interpretation of any law or regulation by
          any
          court, authority or agency, or any other governmental, judicial or regulatory
          body, makes it unlawful, or that any central bank or other governmental
          authority asserts that it is unlawful, for such Lender or its Eurodollar
          Lending
          Office to perform its obligations hereunder to make Eurodollar Rate Advances
          or
          to fund or maintain Eurodollar Rate Advances hereunder, the right of the
          Borrower to select Eurodollar Rate Advances for such 

         

         

        
          
             

          

          
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        Borrowing
          or any subsequent Borrowing, with respect to such Lender (only), shall
          be
          suspended until such Lender shall notify the Agent (with a copy to the
          Borrower)
          that the circumstances causing such suspension no longer exist or such
          Lender
          shall cease to be a party hereto, and each Advance comprising such Borrowing
          shall, with respect to such Lender (only), be a Base Rate Advance of an
          equivalent amount and for an approximately equivalent term, provided that
          if all the Lenders so notify the Agent, the Agent shall so notify the Borrower
          and the Notice of Borrowing in respect of such requested Borrowing shall
          be
          automatically revoked.  Each Lender giving a notice under this
          subclause (A) shall, promptly after giving such notice, provide the Borrower
          (with a copy to the Agent) with an explanation, in reasonable detail, as
          to the
          circumstances causing such suspension;

         

        (B)           in
          the event that it is necessary to determine the Eurodollar Rate with reference
          to the Reference Banks, and if none of the Reference Banks furnish timely
          information to the Agent for determining the Eurodollar Rate for Eurodollar
          Rate
          Advances comprising any requested Borrowing, the right of the Borrower
          to select
          Eurodollar Rate Advances for such Borrowing or any subsequent Borrowing
          shall be
          suspended until the Agent shall notify the Borrower and the Lenders that
          the
          circumstances causing such suspension no longer exist, and each Advance
          comprising such Borrowing shall be a Eurodollar Rate Advance, if available
          (or,
          if not available or the Borrower so notifies the Lenders, a Base Rate Advance);
          and

         

        (C)           if
          the Majority Lenders shall, at least one Business Day before the date of
          any
          requested Borrowing, notify the Agent (with a copy to the Borrower) that
          the
          Eurodollar Rate for Eurodollar Rate Advances comprising such Borrowing
          will not
          adequately reflect the cost to the Lenders of making or funding their respective
          Eurodollar Rate Advances for such Borrowing, the Notice of Borrowing given
          in
          respect of such requested Borrowing shall be automatically revoked and
          the right
          of the Borrower to select Eurodollar Rate Advances for such Borrowing or
          any
          subsequent Borrowing shall be suspended until the Majority Lenders shall
          notify
          the Agent (with a copy to the Borrower) and the other Lenders that the
          circumstances causing such suspension no longer exist.  The Majority
          Lenders giving a notice under this subclause (C) shall, promptly after
          giving
          such notice, provide the Borrower (with a copy to the Agent) with an
          explanation, in reasonable detail, as to the circumstances causing such
          suspension.

         

        (D)           Anything
          in subsection (i) above to the contrary notwithstanding, (1) the Borrower
          may
          not select Eurodollar Rate Advances for any Borrowing if the aggregate
          amount of
          such Borrowing is less than $10,000,000 and (2) the Eurodollar Rate Advances
          may
          not be outstanding as part of more than ten separate Borrowings.

         

         

        
          
             

          

          
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        (iii)           Each
          Notice of Borrowing (subject to (ii)(A) and (ii)(C) above) shall be irrevocable
          and binding on the Borrower.  In the case of any Borrowing which the
          related Notice of Borrowing specifies is to be comprised of Eurodollar
          Rate
          Advances, the Borrower shall indemnify each Lender against any loss, cost
          or
          expense incurred by such Lender as a result of any failure to fulfill on
          or
          before the date specified in such Notice of Borrowing for such Borrowing
          the
          applicable conditions set forth in Article III, including, without limitation,
          any loss (excluding loss of anticipated profits), cost or expense incurred
          by
          reason of the liquidation or reemployment of deposits or other funds acquired
          by
          such Lender to fund the Advance to be made by such Lender as part of such
          Borrowing when such Advance, as a result of such failure, is not made on
          such
          date.  Each Lender claiming indemnity for any such loss, cost or
          expense under this clause (iii) shall provide, at the time of making such
          claim,
          the Borrower (with a copy to the Agent) with reasonable details, including
          the
          basis for the calculation thereof, of such loss, cost or expense,
provided that, in the absence of manifest error, the amount of such
          claims so notified shall be conclusive and binding upon the
          Borrower.

         

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

         

                        SECTION
          2.03.  Fees.  (a) Facility
          Fee.  The Borrower agrees to pay to the Agent for the account of
          each Lender a facility fee on the average daily aggregate amount of the
          Lenders'
          Commitments from the date hereof in the case of each Bank and from the
          effective
          date specified in the Assignment and Acceptance or Assumption Agreement
          pursuant
          to which it became a Lender in the case of each other Lender until the
          Termination Date at the Facility Fee Rate, payable quarterly in arrears
          and on
          the Termination Date.

         

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

         

                        SECTION
          2.04.  Reduction of the Commitments/Substitution
          of Banks.  (a)  The Borrower shall have the right, upon
          at least two Business Days' notice to the Agent, to terminate in whole
          or reduce
          ratably in part the Commitments of the Lenders, provided that (i) each
          partial reduction shall be in the aggregate amount of $10,000,000 or an
          integral
          multiple of $1,000,000 in excess thereof and (ii) any notice of termination
          may
          state that such notice is conditioned upon the effectiveness of other credit
          facilities, in which case such notice may be revoked by the Borrower (by
          notice
          to the Agent) if such condition is not satisfied.

         

         

        
          
             

          

          
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        (b)           On
          the date of receipt (i) by the Borrower of any cash proceeds from the issuance
          of any equity interests of, the Borrower or any of its Subsidiaries (other
          than
          pursuant to any employee stock or stock option compensation plan or any
          issuance
          of any equity interests to the Borrower or any of its Subsidiaries) and
          (ii) by
          the Borrower or any of its Subsidiaries of any cash proceeds from the incurrence
          of any Indebtedness of the Borrower or any of its Subsidiaries (other than
          (A)
          Indebtedness incurred under the Existing Credit Agreement or any replacement
          thereof, (B) any refinancing of Indebtedness, (C) Indebtedness owing to
          the
          Borrower or any of its Subsidiaries, (D) Indebtedness incurred to finance
          the
          acquisition, construction or improvement of any fixed or capital assets
          that is
          incurred prior to or within 90 days after such acquisition, or completion
          of
          such construction or improvement, provided each such incurrence under this
          clause (D) is in an amount not greater than $250,000 or (E) Indebtedness
          incurred under an accounts receivable securitization program), the Commitments
          shall be automatically and permanently reduced by an amount equal to 100%
          of
          such proceeds, net of underwriting discounts and commissions and other
          reasonable costs and expenses associated therewith, including reasonable
          legal
          fees and expenses.

         

        (c)           Optional
          Termination and Substitution of Lenders.  The Borrower may, upon
          not less than two Business Days prior notice to a Lender or Lenders, terminate
          in whole the Commitment of such Lender or Lenders and arrange in respect
          of each
          terminated Lender for one or more bank or banks ("Assuming Lender or
          Lenders"), which may include one or more of the Lenders, but no Lender shall
          have any obligation, to assume a Commitment equal to or Commitments in
          aggregate
          amount equal to the amount of the Commitment of the terminated Lender,
          provided that no such termination shall be made unless, at such time, no
          event has occurred and is continuing which constitutes an Event of
          Default.  Such termination shall be effective (x) with respect to each
          such terminated Lender's Unused Commitment, on the date set forth in such
          notice, provided, however, that such date shall be no earlier than
          two Business Days after receipt of such notice or (y) in the event that
          an
          Advance is outstanding from such terminated Lender which is to be paid
          in
          connection with such termination, on the last day of the then current interest
          period relating to such Advance.  Such assumption shall be effective
          on the date specified in (x) or (y) above, as the case may be, provided,
however, that each Assuming Lender shall have delivered to the
          other
          Lenders, on or prior to such date, an agreement in form and substance
          satisfactory to the Borrower and the Agent (an "Assumption Agreement") in
          substantially the form of Exhibit E hereto.  (The term "Lender" as
          used in this Agreement immediately following such assumption shall include
          an
          Assuming Lender.)  Notwithstanding the provisions of this Section
          2.04(c), termination or substitution shall not be effective unless the
          Assuming
          Lender meets, at the time of substitution, the criteria set forth in this
          Agreement for an "Eligible Assignee."

         

        Upon
          the termination of a Lender's
          Commitment under this subsection 2.04(c), the Borrower will pay or cause
          to be
          paid all principal of, and interest accrued to the date of such payment
          on,
          Advances owing to such Lender and pay any fees payable to such Lender pursuant
          to the provisions of Section 2.03 with respect to the Commitment which
          is
          terminated, any amounts payable pursuant to the provisions of Section 9.04
          and
          any other amounts payable to such Lender hereunder with respect to the
          Commitment which is terminated or Advances which are paid; and upon such
          payments, the obligations of such Lender hereunder shall, by the provisions
          hereof, be released and discharged, and it shall be deemed to have relinquished
          its rights under this Agreement (other than any rights under Section
          9.06).

         

         

        
          
             

          

          
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                        SECTION
          2.05.  Repayment.  The Borrower
          shall repay to the Agent for the ratable account of the Lenders the principal
          amount of each Advance owing to each Lender on the Termination
          Date.

         

                        SECTION
          2.06.  Interest.  The Borrower shall
          pay interest on the unpaid principal amount of each Advance owing to each
          Lender
          from the date of such Advance until such principal amount shall be paid
          in full,
          at the following rates per annum:

         

        (a)           Base
          Rate Advances.  If such Advance is a Base Rate Advance, a rate per
          annum equal at all times to the sum of the Base Rate in effect from time
          to
          time, plus the Applicable Margin, plus the Utilization Fee Rate,
          if applicable, payable in arrears on (i) the last day of each quarter and
          (ii)
          the date such Base Rate Advance shall be paid in full; provided that any
          amount of principal which is not paid when due (whether at stated maturity,
          by
          acceleration or otherwise) shall bear interest, from the date on which
          such
          amount is due until such amount is paid in full, payable on demand, at
          a rate
          per annum equal at all times to 1-1/2% per annum above the Base
          Rate.

         

        (b)           Eurodollar
          Rate Advances.  If such Advance is a Eurodollar Rate Advance, a
          rate per annum equal at all times during the Interest Period for such Advance
          to
          the sum of the Eurodollar Rate for such Interest Period, plus the
          Applicable Margin plus the Utilization Fee Rate, if applicable, payable
          in arrears on (A) if the Interest Period in respect of such Advance is
          less than
          or equal to three months, the last day of such Interest Period, or (B)
          if the
          Interest Period in respect of such Advance is greater than three months,
          the
          last day of each three-month period (beginning the first day of such Interest
          Period) occurring during that Interest Period, and also on the last day
          of such
          Interest Period; provided that any amount of principal which is not paid
          when due (whether at stated maturity, by acceleration or otherwise) shall
          bear
          interest, from the date on which such amount is due until such amount is
          paid in
          full, payable on demand, at a rate per annum equal at all times to 1 1/2%
          per
          annum above the Base Rate in effect from time to time.

         

                        SECTION
          2.07.  Additional Interest on Eurodollar Rate
          Advances.  The Borrower shall pay to the Agent for the account of
          each Lender additional interest on the unpaid principal amount of each
          Eurodollar Rate Advance of such Lender, from the date of such Advance until
          such
          principal amount is paid in full, at an interest rate per annum equal at
          all
          times to the remainder obtained by subtracting (i) the Eurodollar Rate
          for the
          Interest Period for such Advance from (ii) the rate obtained by dividing
          such
          Eurodollar Rate by a percentage equal to 100% minus the Eurodollar Rate
          Reserve
          Percentage of such Lender for such Interest Period, payable on each date
          on
          which interest is payable on such Advance.  Such additional interest
          shall be determined by such Lender and notified to the Borrower and the
          Agent.  Each Lender notifying the Borrower and the Agent of such
          additional interest shall provide the Borrower (with a copy to the Agent),
          at
          the time of such notification, with reasonable details, including the basis
          for
          the calculation thereof, of such additional interest, provided that, in
          the absence of manifest error, the amount of such additional interest so
          notified shall be conclusive and binding upon the Borrower.

         

         

        
          
             

          

          
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                        SECTION
          2.08.  Interest Rate
          Determination.  (a)  If the Eurodollar Rate cannot be
          determined by reference to the Reuters Screen LIBOR01 Page or any successor
          page
          (as provided in the definition of "Eurodollar Rate"), each Reference Bank
          agrees
          to furnish to the Agent timely information for the purpose of determining
          each
          Eurodollar Rate.  Subject to Section 2.02(ii)(B), if any of the
          Reference Banks shall not furnish such timely information to the Agent
          for the
          purpose of determining any such interest rate, the Agent shall determine
          such
          interest rate on the basis of timely information furnished by the remaining
          Reference Bank.

         

        (b)           The
          Agent shall give prompt notice to the Borrower and the Lenders of the applicable
          interest rate determined by the Agent for purposes of Section 2.06(a) or
          (b),
          and the applicable rate, if any, furnished by each Reference Bank for the
          purpose of determining the applicable interest rate under Section
          2.06(b).

         

                        SECTION
          2.09.  Prepayments.  (a)  The
          Borrower shall have no right to prepay any principal amount of any Advances
          other than as provided in subsection (b) or (c) below.

         

        (b)           The
          Borrower may, (i) upon same-day notice in the case of Base Rate Advances
          or (ii)
          upon at least three Business Days' notice in the case of Eurodollar Rate
          Advances, to the Agent stating the proposed date and aggregate principal
          amount
          of the prepayment, and if such notice is given the Borrower shall, prepay
          the
          outstanding principal amounts of the Advances comprising part of the same
          Borrowing in whole or ratably in part, together with accrued interest to
          the
          date of such prepayment on the principal amount prepaid; provided,
however, that (i) each partial prepayment shall be in an aggregate
          principal amount not less than $10,000,000 or an integral multiple of $1,000,000
          in excess thereof, (ii) any notice of prepayment may state that such notice
          is
          conditioned upon the effectiveness of other credit facilities, in which
          case
          such notice may be revoked by the Borrower (by notice to the Agent) if
          such
          condition is not satisfied and (iii) in the event of any such prepayment
          of a
          Eurodollar Rate Advance, the Borrower shall be obligated to reimburse the
          Banks
          in respect thereof pursuant to Section 9.04(b).

         

        (c)           On
          the date of any termination or reduction of Commitments pursuant to this
          Agreement, the Borrower shall pay or prepay so much of the Advances as
          shall be
          necessary in order that the aggregate Usage will not exceed the aggregate
          Commitments of the Lenders after giving effect to such termination or
          reduction.

         

                        SECTION
          2.10.  Increased
          Costs.  (a)  If, due to either (i) the introduction of
          or any change (other than any change by way of imposition or increase of
          reserve
          requirements, in the case of Eurodollar Rate Advances, included in the
          Eurodollar Rate Reserve Percentage) in or in the interpretation of any
          law or
          regulation by any court, authority or agency, or any other governmental,
          judicial or regulatory body, or (ii) the compliance with any guideline
          or
          request from any central bank or other governmental authority (whether
          or not
          having the force of law), there shall be any increase in the cost to any
          Lender
          of agreeing to make or making, funding or maintaining Eurodollar Rate Advances,
          then the Borrower shall from time to time, upon demand by such Lender (with
          a
          copy of such demand to the Agent), pay to the Agent for the account of
          such
          Lender additional amounts sufficient to compensate such Lender for such
          increased cost.  Each Lender demanding payment of such amount shall
          provide, at the time of making such demand, the Borrower and the Agent
          with
          reasonable details, including the basis for the calculation thereof, of
          such
          increase, provided that, in the absence of manifest error, the amount so
          notified shall be conclusive and binding upon the Borrower.

         

         

        
          
             

          

          
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        (b)           If
          any Lender determines (in good faith) that compliance with any law or regulation
          or any guideline or request from any central bank or other governmental
          authority (whether or not having the force of law) affects or would affect
          the
          amount of capital required or expected to be maintained by such Lender
          or any
          corporation controlling such Lender and that the amount of such capital
          is
          increased by or based upon the existence of such Lender's commitment to
          lend
          hereunder and other commitments of this type, then, upon demand by such
          Lender
          (with a copy of such demand to the Agent), the Borrower shall immediately
          pay to
          the Agent for the account of such Lender, from time to time as specified
          by such
          Lender, additional amounts sufficient to compensate such Lender in the
          light of
          such circumstances, to the extent that such Lender reasonably determines
          such
          increase in capital to be allocable to the existence of such Lender's commitment
          to lend hereunder.  Each Lender demanding payment of such amount shall
          provide, at the time of making such demand, the Borrower and the Agent
          with
          reasonable details, including the basis for the calculation thereof, of
          such
          increase, provided that, in the absence of manifest error, the amount so
          notified shall be conclusive and binding upon the Borrower.

         

        (c)           Failure
          or delay on the part of any Lender to demand compensation pursuant to this
          Section shall not constitute a waiver of such Lender's right to demand
          such
          compensation; provided that the Borrower shall not be required to
          compensate a Lender pursuant to this Section for any increased costs incurred
          more than 270 days prior to the date that such Lender notifies the Borrower
          and
          the Agent of any event described in paragraph (a) or (b) of this Section
          (a
          "Change in Law") which gives rise to such increased costs and of such
          Lender's intention to claim compensation therefor;
provided further that, if the Change in Law giving rise to
          such increased costs is retroactive, then the 270-day period referred to
          above
          shall be extended to include the period of retroactive effect
          thereof.

         

        (d)           If
          any Lender requests compensation under this Section, then such Lender shall
          use
          reasonable efforts to designate a different lending office for funding
          or
          booking its Advances hereunder or to assign its rights and obligations
          hereunder
          to another of its offices, branches or affiliates, if, in the judgment
          of such
          Lender, such designation or assignment (i) would eliminate or reduce amounts
          payable pursuant to this Section and (ii) would not subject such Lender
          to any
          unreimbursed cost or expense and would not otherwise be disadvantageous
          to such
          Lender.  The Borrower hereby agrees to pay all reasonable costs and
          expenses incurred by any Lender in connection with any such designation
          or
          assignment.

         

        (e)           If
          any Lender requests compensation under this Section, then the Borrower
          may, at
          its sole expense and effort, upon notice to such Lender require such Lender
          to
          assign and delegate, without recourse (in accordance with and subject to
          the
          restrictions contained in Section 8.02), all its interests, rights and
          obligations under this Agreement to an assignee that shall assume such
          obligations (which assignee may be another Lender, if a Lender accepts
          such
          assignment); provided that (i) at the time the Borrower requires such an
          assignment, no event has occurred and is continuing which constitutes an
          Event
          of Default, (ii) such Lender shall have received payment of an amount equal
          to
          the outstanding principal of its Advances, accrued interest thereon, accrued
          fees and all other amounts payable to it hereunder, from the assignee (to
          the
          extent of such outstanding principal and accrued interest and fees) or
          the
          Borrower (in the case of all other amounts) and (iii) in the case of any
          such
          assignment resulting from a claim for compensation under this Section,
          such
          assignment will result in a reduction in such compensation or
          payments.  A Lender shall not be required to make any such assignment
          and delegation if, prior thereto, as a result of a waiver by such Lender
          or
          otherwise, the circumstances entitling the Borrower to require such assignment
          and delegation cease to apply.

         

         

        
          
             

          

          
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                        SECTION
          2.11.  Payments and
          Computations.  (a)  The Borrower shall make each payment
          hereunder and under the Notes, irrespective of any right of counterclaim
          or
          set-off, not later than 1:00 P.M. (New York City time) on the day when
          due in
          U.S. dollars to the Agent for the account of the applicable Lender at the
          Agent's Account in same day funds.  The Agent will promptly thereafter
          cause to be distributed like funds relating to the payment of principal
          or
          interest or facility fees ratably (other than amounts payable pursuant
          to
          Section 2.07, 2.10, 2.14 or 9.04(b)) to the Lenders entitled thereto for
          the
          account of their respective Applicable Lending Offices, and like funds
          relating
          to the payment of any other amount payable to any Lender to such Lender
          for the
          account of its Applicable Lending Office, in each case to be applied in
          accordance with the terms of this Agreement.  Upon its acceptance of
          an Assignment and Acceptance and recording of the information contained
          therein
          in the Register pursuant to Section 8.02(d), from and after the effective
          date
          specified in each Assignment and Acceptance, the Agent shall make all payments
          hereunder and under the Notes in respect of the interest assigned thereby
          to the
          Lender assignee thereunder, and the parties to such Assignment and Acceptance
          shall make all appropriate adjustments in such payments for periods prior
          to
          such effective date directly between themselves.

         

        (b)           All
          computations of interest with respect to the Advances based on clause (a)
          of the
          definition of Base Rate and of fees (other than the facility fee) shall
          be made
          by the Agent on the basis of a year of 365 or 366 days, as the case may
          be, and
          all computations of interest (i) with respect to the Advances based on
          clause
          (b) of the definition of Base Rate, the Eurodollar Rate or the Federal
          Funds
          Rate, (ii) the facility fee and (iii) pursuant to Section 2.07 shall be
          made by
          the Agent on the basis of a year of 360 days, in each case for the actual
          number
          of days (including the first day but excluding the last day) occurring
          in the
          period for which such interest, fee or commission is payable.  Each
          determination by the Agent (or, in the case of Section 2.07, by a Lender)
          of an
          interest rate hereunder shall be conclusive and binding for all purposes,
          absent
          manifest error.

         

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

         

        (d)           Unless
          the Agent shall have received notice from the Borrower prior to the date
          on
          which any payment is due to the Lenders hereunder that the Borrower will
          not
          make such payment in full, the Agent may assume that the Borrower has made
          such
          payment in full to the Agent on such date and the Agent may, in reliance
          upon
          such assumption, cause to be distributed to each Lender on such due date
          an
          amount equal to the amount then due such Lender.  If and to the extent
          the Borrower shall not have so made such payment in full to the Agent,
          each
          Lender shall repay to the Agent forthwith on demand such amount distributed
          to
          such Lender together with interest thereon, for each day from the date
          such
          amount is distributed to such Lender until the date such Lender repays
          such
          amount to the Agent, at the Federal Funds Rate.

         

         

        
          
             

          

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

         

        (b)           The
          Register maintained by the Agent pursuant to Section 8.02(d) shall include
          a
          control account, and a subsidiary account for each Lender, in which accounts
          (taken together) shall be recorded (i) the date and amount of each Borrowing
          made hereunder, the Type of Advances comprising such Borrowing and, if
          appropriate, the Interest Period applicable thereto, (ii) the terms of
          each
          Assignment and Acceptance delivered to and accepted by it, (iii) the amount
          of
          any principal or interest due and payable or to become due and payable
          from the
          Borrower to each Lender hereunder and (iv) the amount of any sum received
          by the
          Agent from the Borrower hereunder and each Lender's share thereof.

         

        (c)           Entries
          made in good faith by the Agent in the Register pursuant to subsection
          (b)
          above, and by each Lender in its account or accounts pursuant to subsection
          (a)
          above, shall be prima  facie evidence of the amount
          of principal and interest due and payable or to become due and payable
          from the
          Borrower to, in the case of the Register, each Lender and, in the case
          of such
          account or accounts, such Lender, under this Agreement, absent manifest
          error;
provided, however, that the failure of the Agent or such Lender to
          make an entry, or any finding that an entry is incorrect, in the Register
          or
          such account or accounts shall not limit or otherwise affect the obligations
          of
          the Borrower under this Agreement.

         

                        SECTION
          2.13.  Sharing of Payments, Etc.  If
          any Lender shall obtain any payment (whether voluntary, involuntary, through
          the
          exercise of any right of set-off, or otherwise) on account of the Advances
          owing
          to it (other than pursuant to Section 2.04(c), 2.07, 2.10 or 2.14) in excess
          of
          its ratable share of payments on account of the Advances obtained by all
          the
          Lenders, such Lender shall forthwith purchase from the other Lenders such
          participations in the Advances owing to them as shall be necessary to cause
          such
          purchasing Lender to share the excess payment ratably with each of them,
          provided, however, that if all or any portion of such excess
          payment is thereafter recovered from such purchasing Lender, such purchase
          from
          each Lender shall be rescinded and such Lender shall repay to the purchasing
          Lender the purchase price to the extent of such recovery together with
          an amount
          equal to such Lender's ratable share (according to the proportion of (i)
          the
          amount of such Lender's required repayment to (ii) the total amount so
          recovered
          from the purchasing Lender) of any interest or other amount paid or payable
          by
          the purchasing Lender in respect of the total amount so
          recovered.  The Borrower agrees that any Lender so purchasing a
          participation from another Lender pursuant to this Section 2.13 may, to
          the
          fullest extent permitted by law, exercise all its rights of payment with
          respect
          to such participation as fully as if such Lender were the direct creditor
          of the
          Borrower in the amount of such participation.

         

         

        
          
             

          

          
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                        SECTION
          2.14.  Taxes.  (a)  Any
          and all payments by the Borrower to or for the account of any Lender or
          the
          Agent hereunder or under the Notes shall be made, in accordance with Section
          2.11, free and clear of and without deduction for any and all present or
          future
          taxes, levies, imposts, deductions, charges or withholdings, and all liabilities
          with respect thereto, excluding, in the case of each Lender and the
          Agent, (x) taxes imposed on its income, and franchise taxes imposed on
          it, and
          any liability arising therefrom or with respect thereto, by the United
          States or
          any State or other political subdivision thereof or by the jurisdiction
          under
          the laws of which such Lender or the Agent (as the case may be) is organized
          or
          any political subdivision thereof and (y) taxes imposed on its income,
          and
          franchise taxes imposed on it, by the jurisdiction of such Lender's Applicable
          Lending Office or any political subdivision thereof (all such non-excluded
          taxes, levies, imposts, deductions, charges, withholdings and liabilities
          being
          hereinafter referred to as "Taxes").  If the Borrower shall be
          required by law to deduct any Taxes from or in respect of any sum payable
          hereunder or under any Note to any Lender or the Agent, (i) the sum payable
          shall be increased as may be necessary so that after making all required
          deductions (including deductions applicable to additional sums payable
          under
          this Section 2.14) such Lender or the Agent (as the case may be) receives
          an
          amount equal to the sum it would have received had no such deductions been
          made,
          (ii) the Borrower shall make such deductions and (iii) the Borrower shall
          pay
          the full amount deducted to the relevant taxation authority or other authority
          in accordance with applicable law.

         

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

         

        (c)           The
          Borrower will indemnify each Lender and the Agent for the full amount of
          Taxes
          or Other Taxes (including, without limitation, any Taxes or Other Taxes
          imposed
          by any jurisdiction on amounts payable under this Section 2.14) paid by
          such
          Lender or the Agent (as the case may be) and any liability (including penalties,
          interest and expenses) arising therefrom or with respect thereto, whether
          or not
          such Taxes or Other Taxes were correctly or legally asserted.  This
          indemnification shall be made within 30 days from the date such Lender
          or the
          Agent (as the case may be) makes written demand therefor.  If a Lender
          or the Agent receives an indemnification payment from the Borrower in accordance
          with this subsection (c) and such Lender subsequently receives from the
          applicable jurisdiction a payment of all or a portion of the amount of
          Taxes or
          Other Taxes or liability with respect to which such indemnity payment was
          made,
          such Lender shall promptly turn over (without interest) to the Borrower
          the
          amount of such repayment.

         

        (d)           Within
          30 days after the date of any payment of Taxes, the Borrower will furnish
          to the
          Agent, at its address referred to in Section 9.02, the original or a certified
          copy of a receipt evidencing payment thereof.  If no Taxes are payable
          in respect of any payment hereunder or under the Notes, the Borrower will,
          if
          reasonably requested by a Lender or the Agent furnish to the Agent, at
          such
          address, a certificate from each appropriate taxing authority, or an opinion
          of
          counsel acceptable to the Agent, in either case stating that such payment
          is
          exempt from or not subject to Taxes.

         

         

        
          
             

          

          
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        (e)           Each
          Lender shall initially designate an Applicable Lending Office that will
          avoid
          the need for payment of additional amounts by the Borrower pursuant to
          this
          Section 2.14 and, furthermore, any Lender claiming any additional amounts
          payable pursuant to this Section 2.14 shall use its best efforts (consistent
          with its internal policy and legal and regulatory restrictions) to change
          the
          jurisdiction of its Applicable Lending office if the making of such a change
          would avoid the need for, or reduce the amount of, any such additional
          amounts
          which may thereafter accrue and would not, in the reasonable judgment of
          such
          Lender, be otherwise disadvantageous to such Lender.

         

        (f)           Any
          Lender that is entitled to an exemption from or reduction of withholding
          tax
          under the law of the jurisdiction in which the Borrower is located, or
          any
          treaty to which such jurisdiction is a party, with respect to payments
          under
          this Agreement shall deliver to the Borrower, at the time or times prescribed
          by
          applicable law, such properly completed and executed documentation prescribed
          by
          applicable law or reasonably requested by the Borrower as will permit such
          payments to be made without withholding or at a reduced rate.

         

        (g)           Without
          prejudice to the survival of any other agreement of the Borrower hereunder,
          the
          agreements and obligations of the Borrower contained in this Section 2.14
          shall
          survive the payment in full of principal and interest hereunder and under
          the
          Notes.

         

                        SECTION
          2.15.  Interest
          Elections.  (a)  Each Borrowing initially shall be of
          the Type specified in the applicable Notice of Borrowing and, in the case
          of a
          Eurodollar Rate Borrowing, shall have an initial Interest Period as specified
          in
          such Notice of Borrowing.  Thereafter, the Borrower may elect to
          convert such Borrowing to a different Type or to continue such Borrowing
          and, in
          the case of a Eurodollar Rate Borrowing, may elect Interest Periods therefor,
          all as provided in this Section.  The Borrower may elect different
          options with respect to different portions of the affected Borrowing, in
          which
          case each such Borrowing shall be allocated ratably among the Lenders having
          made the Advances comprising such Borrowing, and the Advances comprising
          each
          such portion shall be considered a separate Borrowing.

         

        (b)           To
          make an election pursuant to this Section, the Borrower shall notify the
          Agent
          of such election by telephone by the time that a Notice of Borrowing would
          be
          required under Section 2.02 if the Borrower were requesting a Borrowing
          of the
          Type resulting from such election to be made on the effective date of such
          election.  Each such telephonic Interest Election Request shall be
          irrevocable and shall be confirmed promptly by hand delivery or telecopy
          to the
          Agent of a written Interest Election Request signed by the
          Borrower.

         

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

         

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

         

         

        
          
             

          

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

         

        (iii)           the
          Type of Advances comprising such Borrowing; and

         

        (iv)           the
          Interest Period for each such Advance.

         

        If
          any
          such Interest Election Request requests a Eurodollar Rate Borrowing but
          does not
          specify an Interest Period, the Borrower shall be deemed to have selected
          an
          Interest Period of one month's duration.

         

        (d)           If
          the Borrower fails to deliver a timely Interest Election Request with respect
          to
          a Borrowing prior to the end of the Interest Period applicable thereto,
          then,
          unless such Borrowing is repaid as provided herein, at the end of such
          Interest
          Period such Borrowing shall be continued as or converted to a Base Rate
          Borrowing.

         

        ARTICLE
          III

         

        CONDITIONS
          OF LENDING

         

                        SECTION
          3.01.  Condition Precedent to Effectiveness
          of
          Sections 2.01 and 2.02.  The effectiveness of Sections 2.01 and
          2.02 is subject to the execution and delivery of counterparts of this Agreement
          by the Borrower, the Agent and the Lenders and the satisfaction of the
          following
          additional conditions precedent:

         

        (i)           The
          Agent shall have received the following, each dated the date hereof, in
          form and
          substance satisfactory to the Agent and (except for the Notes) in sufficient
          copies for each Lender:

         

        (a)           A
          Note to the order of any Lender requesting such note pursuant to Section
          2.12.

         

        (b)           An
          Officer's Certificate attaching copies of the resolutions of the Board
          of
          Directors of the Borrower (or an authorized committee thereof) approving
          the
          Loan Documents, and of all documents evidencing other necessary corporate
          action
          and governmental approvals, if any, with respect to the Loan
          Documents.

         

        (c)           An
          Officer's Certificate certifying the names and true signatures of the officers
          of the Borrower authorized to sign the Loan Documents and the other documents
          to
          be delivered hereunder.

         

        (d)           A
          favorable opinion of a Senior Counsel of the Borrower, substantially in
          the form
          of Exhibit D hereto and as to such other matters as any Lender through
          the Agent
          may reasonably request.

         

         

        
          
             

          

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

         

        (ii)           The
          Borrower shall have paid all accrued fees and expenses of the Agent and
          the
          Lenders (including the accrued fees and expenses of counsel to the
          Agent).

         

                        SECTION
          3.02.  Conditions Precedent to Initial
          Borrowing.  The obligation of each Lender to make an Advance on
          the occasion of the initial Borrowing shall be subject to the further conditions
          precedent that on or prior to the date of such Borrowing all of the conditions
          precedent to the consummation of the Borrower’s acquisition of Pioneer Companies
          Inc. (other than the payment of the proceeds of Advances) shall have been
          satisfied substantially in accordance with the terms of the Purchase Agreement
          related thereto delivered to the Lenders prior to May 24, 2007, with no
          amendment, modification or waiver adverse to the interests of the Lenders
          in any
          material respect except as agreed to in writing by the Lenders.

         

                        SECTION
          3.03.  Conditions Precedent to Each Borrowing
          Increasing the Aggregate Amount of Advances.  The obligation of
          each Lender to make an Advance on the occasion of each Borrowing (including
          the
          initial Borrowing) which would increase the aggregate outstanding amount
          of
          Advances owing to such Lender over the aggregate outstanding amount of
          Advances
          owing to such Lender immediately prior to the making of such Advance shall
          be
          subject to the further conditions precedent that on the date of such Borrowing
          the following statements shall be true (and each of the giving of the applicable
          Notice of Borrowing and the acceptance by the Borrower of the proceeds
          of such
          Borrowing shall constitute a representation and warranty by the Borrower
          that on
          the date of such Borrowing such statements are true):

         

        (a)           The
          representations and warranties contained in this Agreement (other than
          the last
          sentence of Section 4.01(e)) are correct in all material respects on and
          as of
          the date of such Borrowing, before and after giving effect to such Borrowing
          and
          to the application of the proceeds therefrom, as though made on and as
          of such
          date, and

         

        (b)           No
          event has occurred and is continuing, or would result from such Borrowing
          or
          from the application of the proceeds therefrom, which constitutes an Event
          of
          Default or which would constitute an Event of Default but for the requirement
          that notice be given or time elapse or both.

         

                        SECTION
          3.04.  Determinations Under Section
          3.01.  For purposes of determining compliance with the conditions
          specified in Section 3.01, each Lender shall be deemed to have consented
          to,
          approved or accepted or to be satisfied with each document or other matter
          required thereunder to be consented to or approved by or acceptable or
          satisfactory to the Lenders unless an officer of the Agent responsible
          for the
          transactions contemplated by this Agreement shall have received notice
          from such
          Lender prior to the date that the Borrower, by notice to the Lenders, designates
          as the proposed effective date of Sections 2.01 and 2.02, specifying its
          objection thereto.  The Agent shall promptly notify the Lenders of the
          occurrence of the effective date of Sections 2.01 and 2.02.

         

         

        
          
             

          

          
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        ARTICLE
          IV

         

        REPRESENTATIONS
          AND WARRANTIES

         

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

         

        (a)           The
          Borrower is a corporation duly organized, validly existing and in good
          standing
          under the laws of the jurisdiction of its incorporation indicated at the
          beginning of this Agreement, has all requisite corporate power and authority
          to
          conduct its business, to own its properties and assets as it is now conducted
          and as proposed to be conducted and is qualified or licensed to do business
          as a
          foreign corporation in good standing in all jurisdictions in which the
          conduct
          of its business requires it to so qualify or be licensed except where the
          failure to do so, individually or in the aggregate, could not reasonably
          be
          expected to materially and adversely affect the ability of the Borrower
          to
          perform its obligations under any Loan Document.

         

        (b)           The
          execution, delivery and performance by the Borrower of the Loan Documents,
          including the Borrower's use of the proceeds thereof, are within the Borrower's
          corporate powers, have been duly authorized by all necessary corporate
          action,
          and do not (i) contravene the Borrower's charter or by-laws or (ii) contravene
          law (including, without limitation, Regulations T, U and X issued by the
          Board
          of Governors of the Federal Reserve Board) or any material contractual
          restriction binding on or affecting the Borrower or (iii) result in or
          require
          the creation or imposition of any Lien upon or with respect to any of the
          properties of the Borrower or any of its Subsidiaries.

         

        (c)           No
          authorization or approval or other action by, and no notice to or filing
          with,
          any governmental authority or regulatory body is required for the due execution,
          delivery and performance by the Borrower of any Loan Documents.

         

        (d)           This
          Agreement is, and each of other Loan Documents when delivered hereunder
          will be,
          the legal, valid and binding obligation of the Borrower enforceable against
          the
          Borrower in accordance with their respective terms.

         

        (e)           The
          consolidated balance sheet of the Borrower and its Subsidiaries as at December
          31, 2006, and the related consolidated statements of income and cash flows
          of
          the Borrower and its Subsidiaries for the fiscal year then ended, accompanied
          by
          an opinion of KPMG LLP, independent public accountants, and the consolidated
          balance sheet of the Borrower and its Subsidiaries as at March 31, 2007,
          and the
          related consolidated statements of income and cash flows of the Borrower
          and its
          Subsidiaries for the three months then ended, duly certified by the chief
          financial officer of the Borrower, copies of which have been furnished
          to each
          Lender, fairly present, subject, in the case of said balance sheet as at
          March
          31, 2007 and said statements of income and cash flows for the three months
          then
          ended, to year-end audit adjustments, the consolidated financial condition
          of
          the Borrower and its Subsidiaries as at such dates and the consolidated
          results
          of the operations of the Borrower and its Subsidiaries for the periods
          ended on
          such dates, all in accordance with GAAP.  Except as publicly disclosed
          prior to the date hereof, on and as of the date of this Agreement, since
          December 31, 2006, there has been no material adverse change in the business,
          financial condition or results of operations of the Borrower and its
          Subsidiaries, taken as a whole.

         

         

        
          
             

          

          
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        (f)           There
          are no actions, suits or proceedings pending or, to the knowledge of the
          Borrower, threatened, against the Borrower or any Subsidiary the reasonably
          anticipated outcome of which (i) would materially and adversely affect
          the
          ability of the Borrower to perform its obligations under the Loan Documents
          or
          (ii) purport to affect the legality, validity or enforceability of any
          Loan
          Document.

         

        (g)           The
          Borrower is not engaged in the business of extending credit for the purpose
          of
          purchasing or carrying Margin Stock, and no proceeds of any Advance will
          be used
          to purchase or carry any Margin Stock or to extend credit to others for
          the
          purpose of purchasing or carrying any Margin Stock, except in compliance
          with
          Regulations T, U and X issued by the Board of Governors of the Federal
          Reserve
          Board.

         

        (h)           Neither
          the Borrower nor any Subsidiary is an "investment company" or a company
          "controlled" by an "investment company" within the meaning of the Investment
          Company Act of 1940.

         

        (i)           The
          Borrower and each Subsidiary have filed all material tax returns (Federal,
          state
          and local) required to be filed and paid all taxes shown thereon to be
          due,
          including interest and penalties, or provided adequate reserves for payment
          thereof.

         

        (j)           In
          the ordinary course of its business, the Borrower conducts an ongoing review
          of
          the effect of Environmental Laws on the operations and properties of the
          Borrower, in the course of which it identifies and evaluates associated
          liabilities and costs (including, without limitation, any capital or operating
          expenditures required for clean-up or closure of properties presently or
          previously owned, any liabilities in connection with off-site disposal
          of
          Hazardous Substances and any capital or operating expenditures) required
          to
          achieve or maintain compliance with Environmental Laws.  On the basis
          of this review, the Borrower has reasonably concluded that, except with
          respect
          to any matter disclosed in Items 1 or 3 in the Borrower's 2006 Form 10-K
          or in
          the Commitments and Contingencies Note to the consolidated financial statements
          incorporated therein, such associated liabilities and costs, are unlikely
          to
          cause a material adverse change in the business, financial condition or
          results
          of operations of the Borrower and its Subsidiaries, taken as a whole, from
          that
          shown on the consolidated financial statements as at, and for the three-month
          period ended March 31, 2007, provided that the inclusion of such
          exception does not indicate that any such matter will cause such a material
          adverse change.

         

         

        
          
             

          

          
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        ARTICLE
          V

         

        COVENANTS
          OF THE BORROWER

         

                        SECTION
          5.01.  Affirmative Covenants.  So
          long as any Advance shall remain unpaid or any Lender shall have any Commitment
          hereunder, the Borrower will, unless the Majority Lenders shall otherwise
          consent in writing:

         

        (a)           Compliance
          with Laws, Etc.  Comply, and cause each Subsidiary to comply, with
          all applicable laws, rules, regulations and orders (such compliance to
          include,
          without limitation, paying before the same become delinquent all taxes,
          assessments and governmental charges imposed upon it or upon its property
          except
          to the extent contested in good faith) the failure to comply with which
          would
          have a material adverse effect on the business, financial condition or
          results
          of operations of the Borrower and its Subsidiaries taken as a
          whole.

         

        (b)           Consolidated
          Leverage Ratio.  Maintain a Consolidated Leverage Ratio as of the
          last day of each Reference Period of not more than 4.00 : 1.0.

         

        (c)           Consolidated
          Interest Coverage Ratio.  Maintain a Consolidated Interest
          Coverage Ratio for each Reference Period of not less than 4.00 :
          1.0.

         

        (d)           Preservation
          of Corporate Existence, Etc.  Preserve and maintain, and cause
          each of its Subsidiaries to preserve and maintain, its corporate existence,
          and
          the rights (charter and statutory) and franchises material to the business
          of
          the Borrower and its Subsidiaries, taken as  a whole; provided,
however, that (i) the Borrower and its Subsidiaries may consummate
          any
          merger or consolidation permitted under Section 5.02(c), (ii) neither the
          Borrower nor any of its Subsidiaries shall be required to preserve any
          such
          right or franchise if the Borrower or such Subsidiary shall determine that
          the
          preservation thereof is no longer desirable in the conduct of the business
          of
          the Borrower or such Subsidiary, as the case may be, and that the loss
          thereof
          is not disadvantageous in any material respect to the Borrower, such Subsidiary
          or the Lenders and (iii) no Subsidiary shall be required to preserve its
          corporate existence if the Borrower has determined to liquidate or dissolve
          such
          Subsidiary and such liquidation or dissolution will not violate any other
          provision of this Agreement.

         

        (e)           Keeping
          of Books.  Keep, and cause each of its Subsidiaries to keep,
          proper books of record and account, in which full and correct entries shall
          be
          made of all financial transactions and the assets and business of the Borrower
          and each such Subsidiary in a manner which will permit the preparation
          of
          consolidated financial statements in accordance with GAAP.

         

        (f)           Maintenance
          of Properties, Etc.  Maintain and preserve, and cause each of its
          Subsidiaries to maintain and preserve, all of its properties that are material
          to the conduct of the business of the Borrower and its Subsidiaries, taken
          as a
          whole, in good working order and condition, ordinary wear and tear
          excepted.

         

         

        
          
             

          

          
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        (g)           Insurance.  Maintain,
          and cause each Subsidiary to maintain, insurance with reputable insurance
          companies or associations in such amount and covering such risks as the
          Borrower, in its good faith business judgment, believes necessary.

         

        (h)           ERISA.  Ensure
          that each ERISA Affiliate will meet its minimum funding requirements and
          all of
          its other obligations under ERISA with respect to all of its Plans and
          satisfy
          all of its obligations to Multiemployer Plans, including any Withdrawal
          Liability, if the failure to do so would have a material adverse effect
          on the
          business, financial condition or results of operations of the Borrower
          and its
          Subsidiaries, taken as a whole.

         

        (i)           Reporting
          Requirements.  Furnish to each Lender:

         

        (i)           as
          soon as available and in any event within 60 days after the end of each
          of the
          first three quarters of each year, balance sheets of the Borrower and the
          Subsidiaries, on a consolidated basis, as of the end of such quarter and
          statements of income and retained earnings and cash flow of the Borrower
          and the
          Subsidiaries, on a consolidated basis, for the period commencing at the
          end of
          the previous year and ending with the end of such quarter, certified by
          the
          chief financial officer of the Borrower, subject to audit and year end
          adjustments;

         

        (ii)           as
          soon as available and in any event within 120 days after the end of each
          year, a
          copy of the balance sheets of the Borrower and the Subsidiaries, on a
          consolidated basis, as of the end of such year and the statements of income
          and
          retained earnings and cash flow of the Borrower and the Subsidiaries, on
          a
          consolidated basis, for such year, certified by KPMG LLP or another independent
          nationally recognized firm of public accountants;

         

        (iii)           as
          soon as possible and in any event within ten days after an officer of the
          Borrower becomes aware of the occurrence of each Event of Default (and
          each
          event which, with the giving of notice or lapse of time, or both, would
          constitute an Event of Default), an Officer's Certificate setting forth
          details
          of such Event of Default or event and the action which the Borrower has
          taken
          and proposes to take with respect thereto;

         

        (iv)           contemporaneously
          with each delivery of the statements referred to in clauses (i) and (ii)
          above,
          (A) either an Officer's Certificate stating that no Event of Default (other
          than
          by reason of non-compliance with the covenants referred to in Sections
          5.01(b)
          and (c)) and no event which, with the giving of notice or lapse of time,
          or
          both, would constitute an Event of Default (other than by reason of
          non-compliance with the covenants referred to in Sections 5.01(b) and (c))
          occurred during such quarter or, if applicable, an Officer's Certificate
          pursuant to clause (iii) above, (B) an Officer's Certificate stating that,
          as of
          the last day of the preceding quarter, and to the best of his or her knowledge,
          at all times during the preceding quarter, the Borrower was in compliance
          with
          the covenants referred to in Sections 5.01(b) and (c) and providing reasonable
          details of the calculations evidencing the Borrower's compliance with such
          covenants and (C) reasonable details of each material change in GAAP from
          those
          applied in preparing the statements referred to in Section 4.01(e) insofar
          as
          such changes are applicable to the statements referred to in clauses (i)
          and
          (ii) above;

         

         

        
          
             

          

          
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        (v)           promptly
          after the sending or filing thereof, copies of all reports which the Borrower
          sends to any of its shareholders, and copies of all reports and registration
          statements which the Borrower or any Subsidiary files with the Securities
          and
          Exchange Commission or any national securities exchange (other than those
          pertaining to employee benefit plans); and

         

        (vi)           such
          other information respecting the condition or operations, financial or
          otherwise, of the Borrower or any Subsidiary as any Lender through the
          Agent may
          from time to time reasonably request.

         

        Reports
          and financial statements
          required to be delivered by the Borrower pursuant to paragraphs (i), (ii)
          and (v) of this Section 5.01(i) shall be deemed to have been delivered on
          the date on which it posts such reports containing such financial statements
          are
          posted on the SEC's website at www.sec.gov; provided that it shall
          deliver paper copies of the reports and financial statements referred to
          in
          paragraphs (i), (ii) and (v) of this Section 5.01(i) to the Agent or
          any Lender who requests it to deliver such paper copies until written notice
          to
          cease delivering paper copies is given by the Agent or such Lender.

         

                        SECTION
          5.02.  Negative Covenants.  So long
          as any Advance shall remain unpaid or any Lender shall have any Commitment
          hereunder, the Borrower will not, without the written consent of the Majority
          Lenders:

         

        (a)           Liens.  Create,
          assume or suffer to exist or permit any Subsidiary of the Borrower to create,
          assume or suffer to exist any Lien upon any of its property or assets,
          whether
          now owned or hereafter acquired, except

         

        (i)           Permitted
          Encumbrances,

         

        (ii)           other
          Liens incidental to the conduct of its business or the ownership of its
          property
          and assets which were not incurred to secure Indebtedness, and which do
          not in
          the aggregate materially detract from the value of its property or assets
          or
          materially impair the use thereof in the operation of its business,

         

        (iii)           Liens
          on property or assets of a Domestic Subsidiary to secure obligations of
          such
          Subsidiary to the Borrower or another Domestic Subsidiary, and Liens on
          property
          or assets of a Foreign Subsidiary to secure obligations of such Subsidiary
          to
          the Borrower or any other Subsidiary,

         

        (iv)           any
          Lien on property of any Foreign Subsidiary to secure Indebtedness of such
          Subsidiary, provided that, immediately after giving effect thereto and
          to the
          concurrent repayment of any other Indebtedness, the aggregate principal
          amount
          of outstanding Indebtedness secured by Liens permitted by this clause (iv)
          or by
          clause (vi) or (ix) of this Section does not exceed 10% of Consolidated
          Net
          Tangible Assets,

         

         

        
          
             

          

          
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        (v)           Liens
          incurred in connection with any Tax-Exempt Financing which do not in the
          aggregate materially detract from the value of the property or assets affected
          thereby or materially impair the use of such property or assets in the
          operation
          of its business,

         

        (vi)           Liens
          on property or assets granted in connection with applications for or
          reimbursement obligations with respect to letters of credit issued at the
          request of the Borrower or a Subsidiary by a banking institution to secure
          the
          performance of obligations of the Borrower or a Subsidiary relating to
          such
          letters of credit, to the extent such banking institution requested the
          granting
          to it of such Lien as a condition for its issuance of the letter of credit;
          provided that, immediately after giving effect thereto and to the concurrent
          repayment of any other Indebtedness, the aggregate principal amount of
          outstanding Indebtedness secured by Liens permitted by this clause (vi)
          or by
          clause (iv) or (ix) of this Section does not exceed 10% of Consolidated
          Net
          Tangible Assets,

         

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

         

        (viii)        Liens
          on fixed or capital assets acquired, constructed or improved by the Borrower
          or
          any Subsidiary; provided that (A) with respect to Liens securing
          Indebtedness of any Domestic Subsidiary, such Liens secure Indebtedness
          permitted by clause (ii) of Section 5.02(b), (B) such Liens and the Indebtedness
          secured thereby are incurred prior to or within 90 days after acquisition
          or the
          completion of such construction or improvement, (C) the Indebtedness secured
          thereby does not exceed 100% of the cost of acquiring, constructing or
          improving
          such fixed or capital assets and (D) such Liens shall not apply to any
          other
          property or assets of the Borrower or any Subsidiary,

         

        (ix)           Liens
          on assets securing other obligations of the Borrower and its Subsidiaries
          not
          expressly permitted by clauses (i) through (viii) above; provided that,
          immediately after giving effect thereto and to the concurrent repayment
          of any
          other secured obligations, the aggregate principal amount of outstanding
          obligations secured by Liens permitted by this clause (ix) or by clause
          (iv) or
          (vi) of this Section does not exceed 10% of Consolidated Net Tangible
          Assets,

         

         

        
          
             

          

          
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        (x)           Liens
          on Margin Stock, if and to the extent the value of all Margin Stock of
          the
          Borrower and its Subsidiaries exceeds 25% of the value of the total assets
          subject to this Section 5.02(a) (it being understood that Margin Stock
          not in
          excess of 25% of the value of such assets will be subject to the restrictions
          of
          this Section 5.02(a)), and

         

        (xi)           liens
          arising in connection with a receivables securitization program.

         

        (b)           Domestic
          Subsidiary Indebtedness.  Permit any Domestic Subsidiary to
          create, incur, assume or permit to exist any Indebtedness, except:

         

        (i)           Indebtedness
          of any Domestic Subsidiary to the Borrower or any other Domestic
          Subsidiary;

         

        (ii)           Indebtedness
          incurred to finance the acquisition, construction or improvement of any
          fixed or
          capital assets, including Capital Lease Obligations and any Indebtedness
          assumed
          in connection with the acquisition of any such assets or secured by a Lien
          on
          any such assets prior to the acquisition thereof, and extensions, renewals
          and
          replacements of any such Indebtedness that do not increase the outstanding
          principal amount thereof; provided that such Indebtedness is incurred
          prior to or within 90 days after such acquisition or the completion of
          such
          construction or improvement;

         

        (iii)           Indebtedness
          of any Person that becomes a Domestic Subsidiary after the date hereof;
          provided that such Indebtedness exists at the time such Person becomes
          a
          Domestic Subsidiary and is not created in contemplation of or in connection
          with
          such Person becoming a Domestic Subsidiary;

         

        (iv)           other
          Indebtedness in an aggregate principal amount not exceeding $20,000,000
          at any
          time outstanding; and

         

        (v)           Indebtedness
          consisting of Invested Amounts.

         

        (c)           Mergers,
          Etc.  (i)  Merge or consolidate with or into any other
          Person (other than a Subsidiary) or (ii) convey, transfer, lease or otherwise
          dispose of, or permit a Subsidiary to convey, transfer, lease, or otherwise
          dispose of, (whether in one transaction or in a series of related transactions)
          all or substantially all of the property or assets of the Borrower and
          its
          Subsidiaries taken as a whole (whether now owned or hereafter acquired),
          directly or indirectly, to any Person, including through a merger or
          consolidation of a Subsidiary with an unaffiliated party, unless (A) in
          each
          case of (i) or (ii), after giving effect to such proposed transaction,
          no Event
          of Default or event which with the giving of notice or lapse of time, or
          both,
          would constitute an Event of Default would exist and (B) in the case of
          clause
          (i),the surviving corporation is the Borrower, provided that to the
          extent that the value of all Margin Stock owned by the Borrower and its
          Subsidiaries taken as a whole exceeds 25% of the value of the total assets
          of
          the Borrower and its Subsidiaries subject to this Section 5.02(c), nothing
          in
          this Section 5.02(c) shall prohibit the sale of such Margin Stock (it being
          understood that Margin Stock not in excess of 25% of the value of such
          assets
          will be subject to the restrictions of this Section 5.02(c)) .

         

         

        
          
             

          

          
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        (d)           Change
          in Nature of Business.  Engage, or permit any of its Subsidiaries
          to engage, to any material extent, in any business other than the businesses
          of
          the type conducted by the Borrower and its Subsidiaries on the date of
          this
          Agreement and businesses reasonably related thereto.

         

        (e)           ERISA.  Create,
          assume or suffer to exist or permit any ERISA Affiliate to create, assume
          or
          suffer to exist (i) any Insufficiency of any Plan (or, in the case of a
          Plan
          with respect to which an ERISA Event described in clauses (iii) through
          (vi) of
          the definition of ERISA Event shall have occurred and then exist, the liability
          related thereto), in respect of which Plan an ERISA Event has occurred,
          or (ii)
          any Withdrawal Liability under any Multiemployer Plan, if the sum of (A)
          any
          such Insufficiency or Withdrawal Liability, as applicable, (B) the Insufficiency
          of any and all other Plans with respect to which an ERISA Event shall have
          occurred and then exist (or, in the case of a Plan with respect to which
          an
          ERISA Event described in clauses (iii) through (vi) of the definition of
          ERISA
          Event shall have occurred and then exist, the liability related thereto),
          (C)
          amounts then required to be paid to any and all other Multiemployer Plans
          by the
          Borrower or its ERISA Affiliates as Withdrawal Liability and (D) the aggregate
          principal amount of all Indebtedness of the Borrower and all the Subsidiaries
          secured by Liens permitted by clauses (iv), (vi), (vii), (viii) and (ix)
          of
          Section 5.02(a), shall exceed 10% of Consolidated Net Tangible
          Assets.

         

        ARTICLE
          VI

         

        EVENTS
          OF
          DEFAULT

         

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

         

        (a)           The
          Borrower shall fail to pay (i) any principal of any Advance when the same
          becomes due and payable or (ii) any interest on any Advance or any fees
          or other
          amounts payable under this Agreement within five days of the same becoming
          due
          and payable; or

         

        (b)           Any
          representation or warranty made by the Borrower herein or by the Borrower
          (or
          any of its officers) in connection with this Agreement shall prove to have
          been
          incorrect in any material respect when made; or

         

        (c)           The
          Borrower shall fail to perform or observe (i) any term, covenant or agreement
          contained in Section 5.01(b), (c) or (i)(iii) or Section 5.02, or (ii)
          any term,
          covenant or agreement contained in any Loan Document (other than as referred
          to
          in subsection (a) or clause (i) above) on its part to be performed or observed
          if, in the case of this clause (ii), such failure shall remain unremedied
          for 30
          days after written notice thereof shall have been given to the Borrower
          by the
          Agent or any Lender; or

         

         

        
          
             

          

          
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        (d)           The
          Borrower or any Subsidiary shall fail to pay any installment of principal
          of or
          any premium or interest on any Indebtedness, which is outstanding in a
          principal
          amount of at least $25,000,000 in the aggregate (but excluding Indebtedness
          outstanding hereunder) of the Borrower or such Subsidiary (as the case
          may be),
          when the same becomes due and payable (whether by scheduled maturity, required
          prepayment, acceleration, demand or otherwise), and such failure shall
          continue
          after the applicable grace period, if any, specified in the agreement or
          instrument relating to such Indebtedness, or any other event shall occur
          or
          condition shall exist under any agreement or instrument relating to any
          such
          Indebtedness and shall continue after the applicable grace period, if any,
          specified in such agreement or instrument, if the effect of such event
          or
          condition is to accelerate, or to permit the acceleration of, the maturity
          of
          such Indebtedness, or any Indebtedness of the Borrower or any Subsidiary
          which
          is outstanding in an aggregate principal amount of at least $25,000,000
          shall,
          for any reason, be accelerated (it being understood that a mandatory prepayment
          on the sale of any asset shall be deemed not to be an acceleration of the
          Indebtedness secured by such asset) ; or

         

        (e)           Either
          the Borrower or any Significant Subsidiary or any two or more Subsidiaries
          which
          (when taken together) would have aggregate total assets constituting those
          of a
          Significant Subsidiary shall generally not pay its debts as such debts
          become
          due, or shall admit in writing its inability to pay its debts generally,
          or
          shall make a general assignment for the benefit of creditors; or any proceeding
          shall be instituted by or against the Borrower or any such Subsidiary seeking
          to
          adjudicate it a bankrupt or insolvent, or seeking liquidation, winding
          up,
          reorganization, arrangement, adjustment, protection, relief, or composition
          of
          it or its debts under any law relating to bankruptcy, insolvency or
          reorganization or relief of debtors, or seeking the entry of an order for
          relief
          or the appointment of a receiver, trustee, or other similar official for
          it or
          for any substantial part of its property, and, in the case of any such
          proceeding instituted against the Borrower or such Subsidiary (but not
          instituted by it), either such proceeding shall not be dismissed or stayed
          for
          60 days or any of the actions sought in such proceeding (including, without
          limitation, the entry of an order for relief against it or the appointment
          of a
          trustee, custodian or other similar official for it or any substantial
          part of
          its property) shall occur; or the Borrower or any such Subsidiary shall
          take any
          corporate action to authorize any of the actions set forth above in this
          subsection (e); or

         

        (f)           Any
          judgment or order for the payment of money in excess of $25,000,000 shall
          be
          rendered against the Borrower or any Subsidiary and either (i) enforcement
          proceedings shall have been commenced by any creditor upon such judgment
          or
          order and, within 60 days of the commencement of such proceedings, such
          judgment
          shall not have been satisfied or (subject to clause (ii) below) shall have
          been
          stayed or (ii) there shall be any period of 60 consecutive days during
          which a
          stay of enforcement of such judgment or order, by reason of a pending appeal
          or
          otherwise, shall not be in effect; or

         

        (g)           The
          Borrower or any of its ERISA Affiliates shall incur, or shall be reasonably
          likely to incur liability in excess of $25,000,000 in the aggregate as
          a result
          of one or more of the following:  (i) the occurrence of any ERISA
          Event; (ii) the partial or complete withdrawal of the Borrower or any of
          its ERISA Affiliates from a Multiemployer Plan; or (iii) the reorganization
          or termination of a Multiemployer Plan;

         

         

        
          
             

          

          
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        then,
          and
          in any such event, the Agent (i) shall at the request, or may with the
          consent
          of the Majority Lenders, by notice to the Borrower declare the obligation
          of
          each Lender to make Advances to be terminated, whereupon the same shall
          forthwith terminate, and (ii) shall at the request, or may with the consent
          of
          the Majority Lenders, by notice to the Borrower, declare the Notes, all
          interest
          thereon and all other amounts payable under this Agreement to be forthwith
          due
          and payable, whereupon the Notes, all such interest and all such amounts
          shall
          become and be forthwith due and payable, without presentment, demand, protest
          or
          further notice of any kind, all of which are hereby expressly waived by
          the
          Borrower; provided, however, that in the event of an Event of Default resulting
          from the actual or deemed entry of an order for relief with respect to
          the
          Borrower under the Federal Bankruptcy Code, (A) the obligation of each
          Lender to
          make Advances shall automatically be terminated and (B) the Notes, all
          such
          interest and all such amounts shall automatically become and be due and
          payable,
          without presentment, demand, protest or any notice of any kind, all of
          which are
          hereby expressly waived by the Borrower.

         

        ARTICLE
          VII

         

        THE
          AGENT

         

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

         

                        SECTION
          7.02.  Agent’s Reliance,
          Etc.  Neither the Agent nor any of its directors, officers, agents
          or employees shall be liable for any action taken or omitted to be taken
          by it
          or them under or in connection with this Agreement, except for its or their
          own
          gross negligence or willful misconduct.  Without limitation of the
          generality of the foregoing, the Agent:  (i) may treat the payee of
          any Note as the holder thereof until the Agent receives and accepts an
          Assignment and Acceptance entered into by the Lender that is the payee
          of such
          Note as assignor, and an Eligible Assignee, as assignee, as provided in
          Section
          8.02; (ii) may consult with legal counsel (including counsel for the Borrower),
          independent public accountants and other experts selected by it and shall
          not be
          liable for any action taken or omitted to be taken in good faith by it
          in
          accordance with the advice of such counsel, accountants or experts; (iii)
          makes
          no warranty or representation to any Lender and shall not be responsible
          to any
          Lender for any statements, warranties or representations (whether 

         

         

        
          
             

          

          
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        written
          or oral) made in or in connection with this Agreement; (iv) shall not have
          any
          duty to ascertain or to inquire as to the performance, observance or
          satisfaction of any of the terms, covenants or conditions of this Agreement
          on
          the part of the Borrower or the existence at any time of any event which
          constitutes, or with the passage of time would constitute, an Event of
          Default
          or to inspect the property (including the books and records) of the Borrower;
          (v) shall not be responsible to any Lender for the due execution, legality,
          validity, enforceability, genuineness, sufficiency or value of, or the
          perfection or priority of any lien or security interest created or purported
          to
          be created in under or in connection with, this Agreement or any other
          instrument or document furnished pursuant hereto; and (vi) shall incur
          no
          liability under or in respect of this Agreement by acting upon any notice,
          consent, certificate or other instrument or writing (which may be by telecopier)
          believed by it to be genuine and signed or sent by the proper party or
          parties.

         

                        SECTION
          7.03.  Citibank and
          Affiliates.  With respect to its Commitment, the Advances made by
          it and the Notes issued to it, Citibank shall have the same rights and
          powers
          under this Agreement as any other Lender and may exercise the same as though
          it
          were not the Agent; and the term “Lender” or “Lenders” shall, unless otherwise
          expressly indicated, include Citibank in its individual
          capacity.  Citibank and its Affiliates may accept deposits from, lend
          money to, act as trustee under indentures of, accept investment banking
          engagements from and generally engage in any kind of business with, the
          Borrower, any of its Subsidiaries and any Person who may do business with
          or own
          securities of the Borrower or any such Subsidiary, all as if Citibank were
          not
          the Agent and without any duty to account therefore to the
          Lenders.  The Agent shall have no duty to disclose information
          obtained or received by it or any of its Affiliates relating to the Borrower
          or
          its Subsidiaries to the extent such information was obtained or received
          in any
          capacity other than as Agent.

         

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

         

                        SECTION
          7.05.  Indemnification.  (a)  Each
          Lender severally agrees to indemnify the Agent (to the extent not reimbursed
          by
          the Borrower), from and against such Lender's ratable share of any and
          all
          liabilities, obligations, losses, damages, penalties, actions, judgments,
          suits,
          costs, expenses or disbursements of any kind or nature whatsoever that
          may be
          imposed on, incurred by, or asserted against the Agent in any way relating
          to or
          arising out of this Agreement or any action taken or omitted by the Agent
          under
          this Agreement (collectively, the “Indemnified Costs”), provided
          that no Lender shall be liable for any portion of the Indemnified Costs
          resulting from the Agent’s gross negligence or willful
          misconduct.  Without limitation of the foregoing, each Lender agrees
          to reimburse the Agent promptly upon demand for its ratable share of any
          out-of-pocket expenses (including reasonable counsel fees) incurred by
          the Agent
          in connection with the preparation, execution, delivery, administration,
          modification, amendment or enforcement (whether through negotiations, legal
          proceedings or otherwise) of, or legal advice in respect of rights or
          responsibilities under, this Agreement, to the extent that the Agent is
          not
          reimbursed for such expenses by the Borrower.  In the case of any
          investigation, litigation or proceeding giving rise to any Indemnified
          Costs,
          this Section 7.05 applies whether any such investigation, litigation or
          proceeding is brought by the Agent, any Lender or a third party.

         

         

        
          
             

          

          
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        (b)           For
          purposes of this Section 7.05, the Lenders' respective ratable shares of
          any amount shall be determined, at any time, according to the sum of
          (i) the aggregate principal amount of the Advances outstanding at such time
          and owing to the respective Lenders and (ii) their respective Unused
          Commitments at such time.  The failure of any Lender Party to
          reimburse the Agent promptly upon demand for its ratable share of any amount
          required to be paid by the Lender Parties to such Agent as provided herein
          shall
          not relieve any other Lender Party of its obligation hereunder to reimburse
          such
          Agent for its ratable share of such amount, but no Lender shall be responsible
          for the failure of any other Lender to reimburse the Agent for such other
          Lender's ratable share of such amount.  Without prejudice to the
          survival of any other agreement of any Lender hereunder, the agreement
          and
          obligations of each Lender contained in this Section 7.05 shall survive the
          payment in full of principal, interest and all other amounts payable hereunder
          and under the Notes.

         

                        SECTION
          7.06.  Successor Agent.  The Agent
          may resign at any time by giving written notice thereof to the Lenders
          and the
          Borrower and may be removed at any time with or without cause by the Majority
          Lenders.  Upon any such resignation or removal, the Majority Lenders
          shall have the right to appoint a successor Agent, subject, so long as
          no Event
          of Default has occurred and is continuing, to the Borrower's
          approval.  If no successor Agent shall have been so appointed by the
          Majority Lenders, and shall have accepted such appointment, within 30 days
          after
          the retiring Agent’s giving of notice of resignation or the Majority Lenders’
removal of the retiring Agent, then the retiring Agent may, on behalf of
          the
          Lenders, appoint a successor Agent, which shall be a commercial bank organized
          under the laws of the United States of America or of any State thereof
          and
          having a combined capital and surplus of at least $500,000,000.  Upon
          the acceptance of any appointment as Agent hereunder by a successor Agent,
          such
          successor Agent shall thereupon succeed to and become vested with all the
          rights, powers, discretion, privileges and duties of the retiring Agent,
          and the
          retiring Agent shall be discharged from its duties and obligations under
          this
          Agreement other than the obligations provided in Section 9.11.  After
          any retiring Agent’s resignation or removal hereunder as Agent, the provisions
          of this Article VII shall inure to its benefit as to any actions taken
          or
          omitted to be taken by it while it was Agent under this Agreement.

         

                        SECTION
          7.07.  Other Agents.  Each Lender
          hereby acknowledges that neither the documentation agent nor any other
          Lender
          designated as any other type of agent (other than administrative agent)
          on the
          signature pages hereof has any liability hereunder other than in its capacity
          as
          a Lender.

         

        ARTICLE
          VIII

         

        ASSIGNMENTS
          AND PARTICIPATIONS

         

                        SECTION
          8.01.  Binding Effect.  This
          Agreement shall become effective when it shall have been executed by the
          Borrower, the Agent and by each Bank and thereafter shall be binding upon
          and
          inure to the benefit of the Borrower, the Agent and each Lender and their
          respective successors and assigns, except that the Borrower shall not have
          the
          right to assign its rights hereunder or any interest herein without the
          prior
          written consent of the Lenders.

         

         

        
          
             

          

          
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                        SECTION
          8.02.  Assignments.  (a)  Each
          Lender may, upon at least 10 Business Days' notice to the Borrower and
          the
          Agent, assign to one or more banks or other entities (other than an assignment
          which would result in increased costs to the Borrower pursuant to Sections
          2.07,
          2.10 or 2.14 hereof) all or a portion of its rights and obligations under
          this
          Agreement (including, without limitation, all or a portion of its Commitment,
          the Advances owing to it and the Note or Notes held by it); provided,
however, that (i) if such bank or other entity is not already
          a Lender or
          an Affiliate of a Lender and prior to the expiring of the 10 Business Days'
          notice referred to above, the Borrower (unless an Event of Default has
          occurred
          and is continuing at such time) or the Agent notifies the assignor Lender
          that
          such assignee is, in its sole discretion, not acceptable to it, such assignor
          Lender shall not make such assignment, (ii) the parties to each such assignment
          shall execute and deliver to the Agent, for its acceptance and recording
          in the
          Register an Assignment and Acceptance, together with any Note or Notes
          subject
          to such assignment and a processing and recordation fee of $3,500 payable
          by the
          parties to each such assignment, (iii) each such assignment shall be only
          to an
          Eligible Assignee, (iv) each such assignment shall be of a constant, and
          not a
          varying, percentage of all of the assigning Lender's rights and obligations
          under this Agreement and (v) the amount of the Commitment of the assigning
          Lender being assigned pursuant to each such assignment (determined as of
          the
          date of the Assignment and Acceptance with respect to such assignment)
          shall in
          no event be less than $5,000,000, in the case of an assignment to a Lender
          and
          $10,000,000, in the case of an Assignment to an Eligible Assignee not already
          a
          Lender and, in each case, shall be an integral multiple of
          $5,000,000.  Upon such execution, delivery, acceptance and recording,
          from and after the effective date specified in each Assignment and Acceptance,
          (A) the assignee thereunder shall be a party hereto and, to the extent
          that
          rights and obligations hereunder have been assigned to it pursuant to such
          Assignment and Acceptance, have the rights and obligations of a Lender
          hereunder
          and (B) the Lender assignor thereunder shall, to the extent that rights
          and
          obligations hereunder have been assigned by it pursuant to such Assignment
          and
          Acceptance, relinquish its rights (other than its rights under Sections
          2.07,
          2.10, 2.14, 9.04 and 9.06 to the extent any claim thereunder relates to
          an event
          arising prior to such assignment) and be released from its obligations
          (other
          than those provided in Section 9.11) under this Agreement (and, in the
          case of
          an Assignment and Acceptance covering all or the remaining portion of an
          assigning Lender's rights and obligations under this Agreement, such Lender
          shall cease to be a party hereto).

         

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

         

         

        
          
             

          

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

         

        (d)           The
          Agent shall maintain at its address referred to in Section 9.02 a copy of
          each Assignment and Acceptance delivered to and accepted by it and a register
          for the recordation of the names and addresses of the Lenders and the Commitment
          of, and principal amount of the Advances owing to, each Lender from time
          to time
          (the "Register").  The entries in the Register shall be
          conclusive and binding for all purposes, absent demonstrable error, provided,
          that the failure of the Agent to make an entry, or any finding that an
          entry is
          incorrect, in the Register shall not limit or otherwise affect the obligations
          of the Borrower under this Agreement and the Borrower, the Agent and the
          Lenders
          may treat each Person whose name is recorded in the Register as a Lender
          hereunder for all purposes of this Agreement.  The Register shall be
          available for inspection by the Borrower or any Lender at any reasonable
          time
          and from time to time upon reasonable prior notice.

         

        (e)           Any
          Lender may pledge all or a portion of its Advances to any Federal Reserve
          Bank
          as collateral security pursuant to Regulation A of the Board of Governors
          of the
          Federal Reserve System and any Operating Circular issued by such Federal
          Revenue
          Bank.  No such assignment shall release the assigning Lender from its
          obligations under the Agreement.

         

                        SECTION
          8.03.  Participations.  Each Lender
          may sell participations to one or more banks or other entities in or to
          all or a
          portion of its rights and obligations under this Agreement (including,
          without
          limitation, all or a portion of its Commitment, and the Advances owing
          to it and
          the Note or Notes held by it); provided, however, that (a) such Lender's
          obligations under this Agreement (including, without limitation, its Commitment
          to the Borrower hereunder) shall remain unchanged, (b) such Lender shall
          remain
          solely responsible to the other parties hereto for the performance of such
          obligations, (c) such Lender shall remain the holder of any such Note for
          all
          purposes of this Agreement, (d) the Borrower and the other Lenders shall
          continue to deal solely and directly with such Lender in connection with
          such
          Lender's rights and obligations under this Agreement, (e) such participation
          is
          not prohibited by applicable law and (f) no participant shall have any
          claim
          against the Borrower or the Agent for any amounts due to it under its
          participation agreement and no Lender shall have any additional claim under
          Sections 2.07, 2.10 or 2.14 as a result of any participation.  Any
          agreement or instrument pursuant to which a Lender sells such a participation
          shall provide that such Lender shall retain the sole right to enforce this
          Agreement and to approve any amendment, modification or waiver of any provision
          of this Agreement; provided that such agreement or instrument may provide
          that such Lender will not, without the consent of the Person acquiring
          such
          participation, agree to any amendment, modification or waiver described
          in
          clause (a), (b) or (c) of the proviso to Section 9.01 that directly affects
          such
          Person.

         

         

        
          
             

          

          
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                        SECTION
          8.04.  Information.  Any Lender may,
          in connection with any assignment or participation or proposed assignment
          or
          participation pursuant to this Article VIII, disclose to the assignee or
          participant or proposed assignee or participant, any information relating
          to the
          Borrower furnished to such Lender by or on behalf of the Borrower.

         

        ARTICLE
          IX

         

        MISCELLANEOUS

         

                        SECTION
          9.01.  Amendments, Etc.  No
          amendment or waiver of any provision of this Agreement or the Notes, nor
          consent
          to any departure by the Borrower therefrom, shall in any event be effective
          unless the same shall be in writing and signed by the Majority Lenders,
          and then
          such waiver or consent shall be effective only in the specific instance
          and for
          the specific purpose for which given; provided, however, that no
          amendment, waiver or consent shall: (a) increase the Commitment of any
          Lender or
          subject any Lender to any additional obligations without the written consent
          of
          such Lender, (b) reduce the principal of, or interest on, any Note, Advance,
          or
          any fee or other amount payable hereunder without the written consent of
          each
          Lender affected thereby, (c) postpone any date fixed for any payment of
          principal of, or interest on, the Notes, Advances, or any fees or other
          amounts
          payable hereunder without the written consent of each Lender affected thereby,
          (d) change the percentage of the Commitments or of the aggregate unpaid
          principal amount of the Notes, Advances, or the number of Lenders, which
          shall
          be required for the Lenders or any of them to take any action hereunder
          without
          the written consent of all the Lenders or (e) amend this Section 9.01 without
          the written consent of all the Lenders and provided 
further that no amendment, waiver or consent shall, unless in
          writing and signed by the Agent in addition to the Lenders required above
          to
          take such action, affect the rights or duties of the Agent under this Agreement
          or any Note.

         

                        SECTION
          9.02.  Notices,
          Etc.  (a)  All notices and other communications provided
          for hereunder shall be either (x) in writing (including telecopy communication)
          and mailed, telecopied or delivered or (y) as and to the extent set forth
          in
          Section 9.02(b) and in the proviso to this Section 9.02(a), if to the Borrower,
          at its address at 190 Carondelet Plaza, Suite 1530, Clayton, MO 63105,
          telecopy
          no.  (618) 258-3292, Attention: Treasury Department; if to any Bank,
          at its Domestic Lending Office specified opposite its name on Schedule
          I hereto;
          if to any other Lender, at its Domestic Lending Office specified in the
          Assignment and Acceptance pursuant to which it became a Lender; and if
          to the
          Agent, at its address at Two Penns Way, New Castle, Delaware 19720, Attention:
          Bank Loan Syndications Department; or, as to the Borrower or the Agent,
          at such
          other address as shall be designated by such party in a written notice
          to the
          other parties and, as to each other party, at such other address as shall
          be
          designated by such party in a written notice to the Borrower and the Agent,
          provided that materials required to be delivered pursuant to Section
          5.01(i)(i), (ii), (iv) and (v) may be delivered to the Agent as specified
          in
          Section 9.02(b) or as otherwise specified to the Borrower by the
          Agent.  All such notices and communications shall, when mailed or
          telecopied, be effective only when received by the relevant
          party.  Delivery by telecopier of an executed counterpart of any
          amendment or waiver of any provision of this Agreement or the Notes or
          of any
          Exhibit hereto to be executed and delivered hereunder shall be effective
          as
          delivery of a manually executed counterpart thereof.

         

         

        
          
             

          

          
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        (b)           So
          long as Citibank or any of its Affiliates is the Agent, materials required
          to be
          delivered pursuant to Section 5.01(i)(i), (ii), (iv) and (v) may be delivered
          to
          the Agent in an electronic medium in a format acceptable to the Agent and
          the
          Lenders by e-mail at oploanswebadmin@citigroup.com.  The Borrower
          agrees that the Agent may make such materials, as well as any other written
          information, documents, instruments and other material relating to the
          Borrower,
          any of its Subsidiaries or any other materials or matters relating to this
          Agreement, the Notes or any of the transactions contemplated hereby
          (collectively, the "Communications") available to the Lenders by posting
          such notices on Intralinks or a substantially similar electronic system
          (the
          "Platform").  The Borrower acknowledges that (i) the
          distribution of material through an electronic medium is not necessarily
          secure
          and that there are confidentiality and other risks associated with such
          distribution, (ii) the Platform is provided "as is" and "as available"
          and (iii)
          neither the Agent nor any of its Affiliates warrants the accuracy, adequacy
          or
          completeness of the Communications or the Platform and each expressly disclaims
          liability for errors or omissions in the Communications or the
          Platform.  No warranty of any kind, express, implied or statutory,
          including, without limitation, any warranty of merchantability, fitness
          for a
          particular purpose, non-infringement of third party rights or freedom from
          viruses or other code defects, is made by the Agent or any of its Affiliates
          in
          connection with the Platform.

         

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

         

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

         

         

        
          
             

          

          
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                        SECTION
          9.04.  Costs, Expenses and
          Taxes.  (a)  The Borrower agrees to pay on demand all
          reasonable out-of-pocket costs and expenses of the Agent in connection
          with the
          preparation, execution, delivery, administration, modification and amendment
          of
          this Agreement, the Notes and the other documents to be delivered hereunder,
          including, without limitation, the reasonable fees and out-of-pocket expenses
          of
          outside counsel for the Agent with respect thereto and with respect to
          advising
          the Agent as to its rights and responsibilities under this Agreement, and
          all
          out-of-pocket costs and expenses of the Agent and the Lenders, if any
          (including, without limitation, reasonable fees and expenses of outside
          counsel
          for each Lender), in connection with the enforcement (whether through
          negotiations, legal proceedings or otherwise) of this Agreement, the Notes
          and
          the other documents to be delivered hereunder including, without limitation,
          reasonable fees and expenses of outside counsel for the Agent and each
          Lender in
          connection with the enforcement of rights under this Section
          9.04(a).

         

        (b)           If
          any payment of principal of any Eurodollar Rate Advance is made by the
          Borrower
          to or for the account of a Lender other than on the last day of the Interest
          Period for such Advance, as a result of a payment pursuant to Section 2.09(b),
          acceleration of the maturity of the Notes pursuant to Section 6.01 or for
          any
          other reason, the Borrower shall, upon demand by such Lender (with a copy
          of
          such demand to the Agent), pay to the Agent for the account of such Lender
          any
          amounts required to compensate such Lender for any additional losses, costs
          or
          expenses which it may reasonably incur as a result of such payment, including,
          without limitation, any loss (excluding loss of anticipated profits), cost
          or
          expense incurred by reason of the liquidation or reemployment of deposits
          or
          other funds acquired by any Lender to fund or maintain such
          Advance.  Each Lender demanding payment of such amount shall provide,
          at the time of making such demand, the Borrower and the Agent with reasonable
          details, including the basis for the calculation thereof, of such increase,
          provided that, in the absence of manifest error, the amount so notified
          shall be conclusive and binding upon the Borrower.

         

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

         

                              SECTION
          9.06.  Indemnification by
          Borrower.  The Borrower agrees to indemnify and hold harmless the
          Agent and each Lender (and each of their respective officers, agents, employees
          and directors) (each, an "Indemnified Party") from and against any and
          all claims, damages, liabilities, obligations, losses, penalties, actions,
          judgments, suits, costs, expenses and disbursements (including, without
          limitation, reasonable fees and disbursements of outside counsel) of any
          kind or
          nature whatsoever ("Claims") which may be imposed on, incurred by or
          asserted against such Lender or any of its officers, agents, employees
          or
          directors (but excluding Claims of any Person resulting from such Person's
          gross
          negligence or willful misconduct) in connection with or arising out of
          any
          investigation, litigation or proceeding (including, without limitation,
          any
          threatened investigation, litigation or proceeding or preparation of a
          defense
          in connection therewith) related to the Notes, this Agreement, any of the
          transactions contemplated herein or the actual or proposed use of the proceeds
          of the 

         

         

        
          
             

          

          
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        Advances,
          except to the extent such claim, damage, loss, liability or expense resulted
          from such Indemnified Party's gross negligence or willful
          misconduct.  In the case of an investigation, litigation or other
          proceeding to which the indemnity in this Section 9.06 applies, such indemnity
          shall be effective whether or not such investigation, litigation or proceeding
          is brought by the Borrower, its directors, equityholders or creditors or
          an
          Indemnified Party or any other Person, whether or not any Indemnified Party
          is
          otherwise a party thereto and whether or not the transactions contemplated
          hereby are consummated.  The Borrower also agrees not to assert any
          claim for special, indirect, consequential or punitive damages against
          the
          Agent, any Lender, any of their Affiliates, or any of their respective
          directors, officers, employees, attorneys and agents, on any theory of
          liability, arising out of or otherwise relating to the Notes, this Agreement,
          any of the transactions contemplated herein or the actual or proposed use
          of the
          proceeds of the Advances.

         

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

         

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

         

                        SECTION
          9.09.  Special Prepayment
          Right.  (a)  In the event that a Change of Control Date
          shall occur, the Borrower will, within 10 days after such Change of Control
          Date, give the Agent written notice thereof and describe in reasonable
          detail
          the facts and circumstances giving rise thereto, and the Borrower will
          prepay,
          if any Lender shall so request, all of the Advances from such Lender plus
          interest accrued to the date of prepayment and any other fees and amounts
          as may
          then be payable by Borrower under this Agreement.  Said request (the
          "Prepayment Notice") shall be made by a Lender in writing not later than
          45 days after the Change of Control Date and shall specify (i) the date
          (the
          "Special Prepayment Date") upon which the Borrower shall prepay the
          Advances, which date shall be not less than 15 days nor more than 45 days
          from
          the date of the Prepayment Notice and (ii) the amount of the Advances to
          be
          prepaid.  In the event of such request, the Commitment of such Lender
          to make Advances shall forthwith terminate.

         

        (b)           On
          the Special Prepayment Date, the Borrower shall prepay all of the Advances
          of
          such Lender plus interest accrued thereon to the Special Prepayment Date
          and
          such other fees and amounts as may then be payable by Borrower under this
          Agreement.  Payment shall be made as provided in this
          Agreement.

         

         

        
          
             

          

          
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        (c)           For
          the purposes of this Section 9.09:

         

        (i)           the
          term "Change of Control Date" shall mean (A) the first day on which any
          person, or group of related persons, has beneficial ownership of more than
          

        33
          1/3%
          of the outstanding voting stock of the Borrower or (B) the date immediately
          following the first date on which the members of the Board of Directors
          of the
          Borrower (the "Board") at the commencement of any period of 730
          consecutive days (together with any other Directors whose appointment or
          election by the Board or whose nomination for election by the stockholders
          of
          the Borrower was approved by a vote of at least a majority of the Directors
          then
          in office who either were Directors at the beginning of such period or
          whose
          appointment or election or nomination for election was previously so approved)
          shall cease to constitute a majority of the Board at the end of such period;
          provided, however, that a Change of Control Date shall not be
          deemed to have occurred under clause (A) hereof if (x) the Borrower shall
          have
          merged or disposed of a portion of its assets in compliance with the
          requirements of subsection 5.02(c) hereof within 10 days after the acquisition
          of such beneficial ownership shall have occurred and (y) no person or group
          of
          related persons shall have beneficial ownership of more than 33 1/3% of
          the
          outstanding voting stock of the Borrower after such merger or
          disposition.

         

        (ii)           the
          term "voting stock" shall mean stock of any class or classes (however
          designated) having ordinary voting power for the election of a majority
          of the
          directors of the Borrower other than stock having such power only by reason
          of a
          contingency.

         

                        SECTION
          9.10.  Jurisdiction,
          Etc.  (a)  Each of the parties hereto hereby irrevocably
          and unconditionally submits, for itself and its property, to the nonexclusive
          jurisdiction of any New York State court or federal court of the United
          States
          of America sitting in New York City, and any appellate court from any thereof,
          in any action or proceeding arising out of or relating to this Agreement
          or any
          of the other Loan Documents, or for recognition or enforcement of any judgment,
          and each of the parties hereto hereby irrevocably and unconditionally agrees
          that all claims in respect of any such action or proceeding may be heard
          and
          determined in any such New York State court or, to the extent permitted
          by law,
          in such federal court.  The Borrower hereby further irrevocably
          consents to the service of process in any action or proceeding in such
          courts by
          the mailing thereof by any parties hereto by registered or certified mail,
          postage prepaid, to the Borrower at its address specified pursuant to Section
          9.02.  Each of the parties hereto agrees that a final judgment in any
          such action or proceeding shall be conclusive and may be enforced in other
          jurisdictions by suit on the judgment or in any other manner provided by
          law.  Nothing in this Agreement shall affect any right that any party
          may otherwise have to bring any action or proceeding relating to this Agreement
          or any of the other Loan Documents in the courts of any
          jurisdiction.

         

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

         

         

        
          
             

          

          
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                        SECTION
          9.11.  Confidentiality.  Each of the
          Agent and the Lenders expressly agrees, for the benefit of the Borrower
          and its
          Subsidiaries, to maintain the confidentiality of the Confidential Information,
          except that Confidential Information may be disclosed (a) to its and its
          Affiliates' directors, officers, employees and agents, including accountants,
          legal counsel and other advisors (it being understood that the Persons
          to whom
          such disclosure is made will be informed of the confidential nature of
          such
          Confidential Information and instructed to keep such Confidential Information
          confidential), (b) to the extent requested by any regulatory authority,
          (c) to
          the extent required by applicable laws or regulations or by any subpoena
          or
          similar legal process, (d) to any other party to this Agreement, (e) in
          connection with the exercise of any remedies hereunder or any suit, action
          or
          proceeding relating to this Agreement or the enforcement of rights hereunder,
          (f) subject to an express agreement for the benefit of the Borrower and
          its
          Subsidiaries containing provisions substantially the same as those of this
          Section, to any Eligible Assignee of or participant in, or any prospective
          assignee of or participant in, any of its rights or obligations under this
          Agreement, (g) with the consent of the Borrower or (h) to the extent such
          Confidential Information (i) becomes publicly available other than as a
          result
          of a breach of this Section or (ii) becomes available to the Agent or any
          Lender
          on a nonconfidential basis from a source other than the Borrower or any
          of its
          Subsidiaries.  For the purposes of this Section, "Confidential
          Information" means all information, including material nonpublic information
          with the meaning of Regulation FD promulgated by the SEC ("Regulation
          FD"), received from the Borrower or its Subsidiaries relating to such
          entities or their respective businesses, other than any such information
          that is
          available to the Agent or any Lender on a nonconfidential basis prior to
          disclosure by such entities; provided, that such information is clearly
          identified at the time of delivery as confidential.  Any Person
          required to maintain the confidentiality of Confidential Information as
          provided
          in this Section shall be considered to have compiled with its obligation
          to do
          so if such Person has exercised the same degree of care to maintain the
          confidentiality of such information as such Person customarily accords
          to its
          own confidential information; provided, however, that with respect to
          disclosures pursuant to clauses (b) and (c) of this Section, unless prohibited
          by law or applicable court order, each Lender and the Agent shall attempt
          to
          notify the Borrower of any request by any governmental agency or representative
          thereof or other Person for disclosure of Confidential Information after
          receipt
          of such request, and if reasonable, practicable and permissible, before
          disclosure of such Confidential Information.  It is understood and
          agreed that the Borrower, its Subsidiaries and their respective Affiliates
          may
          rely upon this Section for any purpose, including without limitation to
          comply
          with Regulation FD.

         

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

         

        

        
          
             

          

          
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                        SECTION
          9.13.  Waiver of Jury Trial.  Each
          of the Borrower, the Agent and the Lenders hereby irrevocably waives all
          right
          to trial by jury in any action, proceeding or counterclaim (whether based
          on
          contract, tort or otherwise) arising out of or relating to this Agreement
          or any
          of the other Loan Documents or the actions of the Agent or any Lender in
          the
          negotiation, administration, performance or enforcement thereof.

         

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

         

        Borrower

         

        
          	 	
                  OLIN
                    CORPORATION

                	 
	 	 	 	 
	
                   

                	
                  By:
                    

                	 /s/
                  Stephen C. Curley	 
	 	 	Name: 
Stephen
                  C.
                  Curley	 
	 	 	Title:   
Vice
                  President and Treasurer	 
	 	 	 	 

        

         

        
          Agent

           

          
            	 	
                    CITIBANK,
                      N.A.,
                      as Agent

                  	 
	 	 	 	 
	
                     

                  	
                    By:
                      

                  	/s/
                    Shannon A. Sweeney	 
	 	 	Name: Shannon
                    A.
                    Sweeney	 
	 	 	Title:  
Vice
                    President	 
	 	 	 	 

          

           

        

        
           

          Lenders

           

          Commitment

           

          
            	$60,000,000	
                    CITIBANK,
                      N.A.

                  	 
	 	 	 	 
	
                     

                  	
                    By:
                      

                  	 /s/
                    Shannon A. Sweeney	 
	 	 	Name: Shannon
                    A.
                    Sweeney	 
	 	 	Title:  
Vice
                    President	 
	 	 	 	 

          

           

        

        
          
            	$60,000,000	
                    BANK
                      OF AMERICA,
                      N.A.

                  	 
	 	 	 	 
	
                     

                  	
                    By:
                      

                  	/s/
                    Phillip J. Lynch	 
	 	 	Name: Phillip
                    J.
                    Lynch	 
	 	 	Title:  
Vice
                    President	 
	 	 	 	 

          

           

           

          
            
               

            

            
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            	$30,000,000	
                    WACHOVIA
                      BANK,
                      NATIONAL

                  	 
	 	ASSOCIATION	 
	 	 	 	 
	
                     

                  	
                    By:
                      

                  	 /s/
                    Barbara Van Meerten	 
	 	 	Name:
                    Barbara Van
                    Meerten	 
	 	 	Title:  
                    Director	 
	 	 	 	 

          

           

          
             

            
              	$150,000,000
                      Total of
                      Commitments	
                       

                    	 

            

          

        

         

         

        
          
             

          

          
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        TABLE
          OF CONTENTS

         

        Page

         

        ARTICLE
          I

        DEFINITIONS
          AND ACCOUNTING TERMS

         

        
          
            
              	
                      SECTION
                        1.01.  Certain Defined Terms

                    	
                      1

                    
	
                      SECTION
                        1.02.  Computation of Time
                        Periods

                    	
                      13

                    
	
                      SECTION
                        1.03.  Accounting Terms

                    	
                      13

                    

            

            

            ARTICLE
              II

            AMOUNTS
              AND TERMS OF THE ADVANCES

             

          

          
            	
                    SECTION
                      2.01.  The Advances

                  	
                    14

                  
	
                    SECTION
                      2.02.  Making the Advances

                  	
                    14

                  
	
                    SECTION
                      2.03.  Fees

                  	
                    16

                  
	
                    SECTION
                      2.04.  Reduction of the Commitments/Substitution
                      of Banks

                  	
                    16

                  
	
                    SECTION
                      2.05.  Repayment

                  	
                    18

                  
	
                    SECTION
                      2.06.  Interest

                  	
                    18

                  
	
                    SECTION
                      2.07.  Additional Interest on Eurodollar Rate
                      Advances

                  	
                    18

                  
	
                    SECTION
                      2.08.  Interest Rate
                      Determination

                  	
                    19

                  
	
                    SECTION
                      2.09.  Prepayments

                  	
                    19

                  
	
                    SECTION
                      2.10.  Increased Costs

                  	
                    19

                  
	
                    SECTION
                      2.11.  Payments and
                      Computations

                  	
                    21

                  
	
                    SECTION
                      2.12.  Evidence of
                      Indebtedness

                  	
                    22

                  
	
                    SECTION
                      2.13.  Sharing of Payments,
                      Etc

                  	
                    22

                  
	
                    SECTION
                      2.14.  Taxes

                  	
                    23

                  
	
                    SECTION
                      2.15.  Interest Elections

                  	
                    24

                  

          

          

          ARTICLE
            III

          CONDITIONS
            OF LENDING

           

          
            	
                    SECTION
                      3.01.  Condition Precedent to Effectiveness of
                      Sections 2.01 and 2.02

                  	
                    25

                  
	
                    SECTION
                      3.02.  Conditions Precedent to Initial
                      Borrowing

                  	
                    26

                  
	
                    SECTION
                      3.03.  Conditions Precedent to Each Borrowing
                      Increasing the Aggregate Amount of Advances

                  	
                    26

                  
	
                    SECTION
                      3.04.  Determinations Under Section
                      3.01

                  	
                    26

                  

          

          

          ARTICLE
            IV

          REPRESENTATIONS
            AND WARRANTIES

           

          
            	
                    SECTION
                      4.01.  Representations and Warranties of the
                      Borrower

                  	
                    27

                  

          

           

           

          
            
               

            

            
              
              

              
                

              

            

            
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                of Contents

            

          

          
 

          ARTICLE
            V

          COVENANTS
            OF THE BORROWER

           

          
            	
                    SECTION
                      5.01.  Affirmative Covenants

                  	
                    29

                  
	
                    SECTION
                      5.02.  Negative Covenants

                  	
                    31

                  

          

           

          ARTICLE
            VI

          EVENTS
            OF DEFAULT

           

          
            	
                    SECTION
                      6.01.  Events of Default

                  	
                    34

                  

          

           

          ARTICLE
            VII

          THE
            AGENT

           

          
            	
                    SECTION
                      7.01.  Authorization and
                      Action

                  	
                    36

                  
	
                    SECTION
                      7.02.  Agent’s Reliance, Etc

                  	
                    36

                  
	
                    SECTION
                      7.03.  Citibank and
                      Affiliates

                  	
                    37

                  
	
                    SECTION
                      7.04.  Lender Credit
                      Decision

                  	
                    37

                  
	
                    SECTION
                      7.05.  Indemnification

                  	
                    37

                  
	
                    SECTION
                      7.06.  Successor Agent

                  	
                    38

                  
	
                    SECTION
                      7.07.  Other Agents

                  	
                    38

                  

          

          

          ARTICLE
            VIII

          ASSIGNMENTS
            AND PARTICIPATIONS

           

          
            	
                    SECTION
                      8.01.  Binding Effect

                  	
                    38

                  
	
                    SECTION
                      8.02.  Assignments

                  	
                    39

                  
	
                    SECTION
                      8.03.  Participations

                  	
                    40

                  
	
                    SECTION
                      8.04.  Information

                  	
                    41

                  

          

          

          ARTICLE
            IX

          MISCELLANEOUS

           

          
            	
                    SECTION
                      9.01.  Amendments, Etc.

                  	
                    41

                  
	
                    SECTION
                      9.02.  Notices, Etc

                  	
                    41

                  
	
                    SECTION
                      9.03.  No Waiver; Remedies

                  	
                    42

                  
	
                    SECTION
                      9.04.  Costs, Expenses and
                      Taxes

                  	
                    43

                  
	
                    SECTION
                      9.05.  Right of Set-off

                  	
                    43

                  
	
                    SECTION
                      9.06.  Indemnification by
                      Borrower

                  	
                    43

                  
	
                    SECTION
                      9.07.  Governing Law

                  	
                    44

                  
	
                    SECTION
                      9.08.  Execution in
                      Counterparts

                  	
                    44

                  
	
                    SECTION
                      9.09.  Special Prepayment
                      Right

                  	
                    44

                  
	
                    SECTION
                      9.10.  Jurisdiction, Etc

                  	
                    45

                  
	
                    SECTION
                      9.11.  Confidentiality

                  	
                    46

                  
	
                    SECTION
                      9.12.  Patriot Act

                  	
                    46

                  
	
                    SECTION
                      9.13.  Waiver of Jury Trial

                  	
                    47

                  

          

           

           

          
            
               

            

            
              ii

              
                

              

            

            
              Table
                of Contents

            

          

          
 

          
            
              	 	
                      Schedule
                        I

                    	
                      –

                    	
                      List
                        of Applicable Lending Offices

                    

            

            

            

            
              	 	
                      Exhibit
                        A

                    	
                      –

                    	
                      Promissory
                        Note

                    
	 	
                      Exhibit
                        B

                    	
                      –

                    	
                      Notice
                        of Borrowing

                    
	 	
                      Exhibit
                        C

                    	
                      –

                    	
                      Assignment
                        and Acceptance

                    
	 	
                      Exhibit
                        D

                    	
                      –

                    	
                      Opinion
                        of Counsel to the Borrower

                    
	 	
                      Exhibit
                        E

                    	
                      –

                    	
                      Assumption
                        Agreement

                    

            

          

        

      

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    iiiex10-1.htm

    Exhibit
      10.1

     

    UNITED
      STATES OF AMERICA

    DEPARTMENT
      OF THE TREASURY

    OFFICE
      OF THE COMPTROLLER OF THE CURRENCY

    

    
      	 	 	 
	
              In
                the Matter of:

              Commerce
                Bank, National Association

              Philadelphia,
                Pennsylvania

            	
              )

              )    AA-EC-07-44                  

              )

            	 

    

     

    

    CONSENT
      ORDER

    

    The
      Comptroller of the Currency of the United States of America (“Comptroller”),
through
      his National Bank Examiners and other staff, is conducting an investigation
      of
      Commerce Bank, National Association, Philadelphia, Pennsylvania
      (“Bank”).  Certain issues arising from the investigation have been
      communicated to the Bank.

     

    The
      Bank,
      by and through its duly elected and acting Board of Directors (“Board”), has
      executed a Stipulation and Consent to the Issuance of a Consent Order, dated
      June 28, 2007 (“Stipulation and Consent”), that is accepted by the
      Comptroller.  By that Stipulation and Consent, which is incorporated
      by reference herein, the Bank has consented to the issuance of this Consent
      Order (“Order”) by the Comptroller to ensure that actual or apparent conflicts
      of interest or unsafe or unsound practices involving the construction or
      acquisition of branch offices do not occur in the future.

     

    Pursuant
      to the authority vested in him by the Federal Deposit Insurance Act, as amended,
      12 U.S.C. § 1818, the Comptroller hereby orders that:

    

    ARTICLE
      I

    Restrictions
      on Insider and Insider-Related Party Transactions

    

     (1)
      As of the effective date of this Order, the Bank shall not engage in any
      transactions, including Coordinated Transactions, nor enter into any contracts
      or agreements, with any Insiders or Insider-Related Parties, except as provided
      in this Article and Article II.

     

     (2)
      The restrictions contained in paragraph (1) above apply to, but are not limited
      to, any goods or services provided by Insiders or Insider-Related Parties to
      the
      Bank, but shall not apply to any goods or services provided by the Bank to
      Insiders or Insider-Related Parties which:

     

    (a)  Aggregate
      to an amount or value of $25,000 or less per calendar year for each Insider
      or
      Insider Related Party, if provided on non-preferential terms and conditions;
      or

     

    (b)  Are
      provided on such terms and conditions as are advertised to and available to
      the
      general public.

     

    (3)
      The
      restrictions contained in paragraph (1) above shall not apply to the payment
      of
      compensation or other benefits to Insiders or Insider-Related Parties as
      remuneration for their services as employees or directors of the Bank,
      if:

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a)
      Such
      Insider or Insider-Related Party was an employee or director of the Bank as
      of
      June 30, 2007; and

     

    (b)
      Such
      payments are reasonable and appropriate and have been approved in advance by
      the
      Board of Directors.

     

     (4)
      The Bank may engage in other transactions, contracts or agreements with Insiders
      or Insider-Related Parties, only after receiving written notification that
      the
      OCC does not object to the transactions, contracts or agreements, or pursuant
      to
      a detailed policy for which the Bank has received written notification that
      the
      OCC does not object.

     

     (5)
      The Bank shall require all Insiders to disclose in writing the information
      required by this paragraph and shall produce a report to the OCC, within thirty
      (30) days of the end of each calendar quarter:

     

    (a)
      Listing all Insiders and all Insider-Related Parties;

     

    (b)
      Detailing all transactions, Coordinated Transactions, contracts or agreements
      conducted, entered into or outstanding during the immediately preceding calendar
      quarter or proposed for the future between any Insider or Insider-Related Party
      and the Bank  (other than transactions, contracts or agreements
      permitted by sub-paragraph (2)(b) or paragraph (3) above);

     

    (c)
      Detailing all transactions, Coordinated Transactions, contracts or agreements
      conducted, entered into or outstanding during the immediately preceding calendar
      quarter or proposed for the future between any Insider who is an employee or
      director of the Bank or any such person’s Insider-Related Parties, and any party
      that is, or at any time since the effective date of this Order was, a Vendor,
      RE
      Principal, RE Principal Agent, RE Service Provider or RE Subcontractor (other
      than transactions, contracts or agreements by such Insiders or Insider-Related
      Parties that were on such terms and conditions as are advertised to and
      available to the general public, and transactions, contracts or agreements
      negotiated by the Bank which equally benefit all Bank employees);
      and

     

    (d)
      Verified in writing as accurate to the best of the knowledge and belief of
      each
      Insider and the Bank’s Chief Financial Officer.

     

     (6)
      Within sixty (60) days of the effective date of this Order, the Bank shall
      submit a proposal to retain a third-party entity acceptable to the OCC to
      perform the services described in this Article (“Investigative Service”) and
      shall submit proposed engagement terms and agreed-upon procedures acceptable
      to
      the OCC with the proposed Investigative Service.  The proposed
      Investigative Service shall be independent of the Bank, of its holding company,
      and of any Insiders or Insider-Related Parties.  The Bank shall
      provide to the OCC the name and qualifications of the proposed Investigative
      Service and a history of previous engagements by the Bank or its holding company
      of the proposed Investigative Service.  The Bank shall neither propose
      to use nor use an Investigative Service that has previously performed services
      for any Insiders or Insider-Related Parties.  Within five (5) business
      days after receiving written notification that the OCC does not object to
      retention of the Investigative Service, the terms of the engagement, and the
      agreed-upon procedures, the Bank shall retain the Investigative
      Service.

     

     (7)
      The duties of the Investigative Service shall be to determine whether the Bank
      and Insiders have complied with the requirements of this Article.  The
      Investigative Service shall prepare a report detailing the Bank’s actions with
      respect to this Article, specifically noting any noncompliance.  The
      initial report shall be provided to the Bank’s Board of Directors and to the OCC
      not later than December 1, 2007, covering the third calendar quarter of 2007,
      and thereafter within sixty (60) days of the end of each calendar
      year.  The Bank shall make available to the Investigative Service all
      records, reports, and other information necessary, in the judgment of the
      Investigative Service or the OCC, to fulfill its duties.  The Bank
      shall fully and timely cooperate with the Investigative Service and shall ensure
      that all Insiders fully and timely cooperate with the Investigative
      Service.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    

    ARTICLE
      II

    Existing
      Insider and Insider-Related Party Relationships

     

     (1)
      Only until December 31, 2007, the Bank may continue existing contracts and
      agreements with Insiders and Insider-Related Parties (including, but not limited
      to InterArch, Inc. and Interstate Commercial Real Estate, Inc.), but shall
      neither renew any such contracts or agreements nor enter into any new contracts
      or agreements with Insiders or Insider-Related Parties except those permitted
      by
      Article I or detailed in the Transition Plan implemented by the Bank following
      the procedures provided in this Article.

     

     (2)
      Within sixty (60) days of the effective date of this Order, the Bank shall
      provide a Transition Plan acceptable to the OCC.  After receiving
      written notification that the OCC does not object to the Transition Plan, the
      Bank shall immediately implement and thereafter adhere to the Transition
      Plan.  The Bank shall not make any changes or modifications to the
      Transition Plan without first receiving written notification that the OCC does
      not object to such changes or modifications.

     

    (3)
      With
      respect to all contracts and agreements with Insiders or Insider-Related Parties
      existing as of the effective date of this Order, except those described in
      paragraph (4) below or permitted by Article I, the Transition Plan
      shall:

     

                                    (a)
      Identify and detail all such contracts and agreements;

     

                                   
      (b) Detail the steps the Bank shall take, including specific timeframes, to
      terminate each such contract or agreement not later than December 31,
      2007;

     

    (c)
      Detail the steps the Banks shall take, including specific timeframes, to modify
      any such contracts or agreements (prior to termination of such contracts or
      agreements as provided in subparagraph (3)(b) above); and

     

    (d)
      Detail all payments made to or received from Insiders or Insider-Related Parties
      pursuant to such contracts or agreements since January 1, 2007, and all payments
      expected to be made to or received from Insiders or Insider-Related Parties
      pursuant to such contracts or agreements, through the completion of the
      Transition Plan.

     

    (4)
      With
      respect to each lease where the lessee is the Bank and the lessor is an entity
      wholly or partially owned by any Insiders or Insider-Related Parties, the
      Transition Plan shall:

     

    (a)
      Identify and detail all such leases;

     

    (b)
      Provide a cost-benefit analysis evaluating, at a minimum:

     

             (i)
      Continuation of each such lease, including one or more extensions available
      to
      the Bank under the terms of the lease;

     

            
      (ii) Continuation of such lease only through the currently effective term of
      the
      lease;

     

            (iii)
      Termination of such lease by December 31, 2007;

     

    (iv)
      Termination of such lease at the end of the currently effective term of the
      lease; and

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

          (v)
      Purchase of the property leased by
      the Bank;

     

    (c)
      Detail what steps, if any, the Bank shall take, including specific timeframes,
      to terminate such lease;

     

    (d)
      Detail what steps, if any, the Banks shall take, including specific timeframes,
      to modify any such lease; and

     

    (e)
      Detail all payments made to Insiders or Insider-Related Parties pursuant to
      each
      such lease since January 1, 2007, and all payments expected to be made to
      Insiders or Insider-Related Parties pursuant to each such lease, through the
      completion of the Transition Plan.

     

    ARTICLE
      III

    Real
      Estate Review Committee

     

     (1)
      Within thirty (30) days of the effective date of this Order, the Board of
      Directors shall designate at least three (3) directors to form a Real Estate
      Review Committee.  None of the proposed directors shall hold a
      management position with the Bank, and each of the proposed directors shall
      possess the expertise necessary to assist the Committee in the performance
      of
      its duties.  Before making such designations, the Board of Directors
      shall consider any Real Estate Related Activity between the directors and the
      Bank during the past ten (10) years and whether such Real Estate Related
      Activity would affect the director’s ability to execute his duties as set forth
      in this Article.

     

     (2)
      Within sixty (60) days after the effective date of this Order, the Board of
      Directors shall develop and provide to the OCC a Real Estate Review Committee
      charter (“Charter”).  The proposed Charter shall contain the policies
      and procedures of the Real Estate Review Committee, consistent with this
      Order.  The proposed Charter shall ensure that the Real Estate Review
      Committee is provided with adequate authority to require Bank management to
      produce such information, documentation and reports as the Real Estate Review
      Committee deems appropriate for its decisions.

     

    (3)
      The
      Real Estate Review Committee shall be responsible for making the following
      decisions, which shall be presented to the Board of Directors for ratification
      at its next regular meeting:

     

          (a)
      All
      decisions relating to the purchase or lease of land or improvements by the
      Bank,
      including negotiations with RE Principals and any modifications to contracts
      or
      agreements for the purchase or lease of land or improvements that amount to
      or
      involve a value of more than $100,000;

     

          (b)
      All
      decisions relating to any Coordinated Transactions that amount to or involve
      a
      value of more than $100,000;

     

          (c)
      All
      decisions related to contracts and agreements with RE Service Providers and
      RE
      Subcontractors that amount to or involve a value of more than $100,000,
      including any modifications or change orders to such contracts or agreements
      that amount to or involve a value of more than $100,000; and

     

          (d)
      All
      decisions related to approval of or amendment to budgets for all types of Real
      Estate Related Activity, by individual projects, that amount to or involve
      a
      value of more than $100,000.

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      IV

    
      Management
        Plan

       

    

    (1)
      Within ten (10) days of the effective date of this Order, the Board of Directors
      shall submit a proposed Management Plan acceptable to the OCC.  The
      Management Plan shall include:

     

    (a)
      The
      steps the Board shall take to address necessary or desirable changes to the
      Bank’s management structure;

     

    (b)
      The
      steps the Board shall take to address necessary or desirable changes to the
      composition and membership of the Board and Board committees; and

     

    (c)
      Specific timeframes to accomplish each such step.

     

    (2)
      After
      receiving written notice that the OCC does not object to the proposed Management
      Plan, the Board of Directors shall immediately implement and thereafter adhere
      to the Management Plan.  The Board of Directors shall not make any
      changes or modifications to the Management Plan without first receiving written
      notice that the OCC does not object to such changes or
      modifications.

    

    ARTICLE
      V

    Compliance

     

    (1)
      The
      Board of Directors shall be responsible for ensuring compliance with all aspects
      of this Order.

     

    (2)
      In
      each instance in which the Bank is required or permitted to submit a proposal
      to
      the OCC, and each instance in which the Bank is required to obtain notice that
      the OCC does not object prior to acting, any decision by the OCC concerning
      such
      matters shall be within the sole discretion of the OCC.  Any
      adjudication of OCC decisions shall be under the “abuse of discretion”
standard.

     

    (3)
      The
      Bank shall ensure that all applications, reports and other communications to
      the
      OCC are accurate.  If the Bank determines that any statement in an
      application, report or other communication was or has become inaccurate, it
      shall promptly notify the OCC in writing.

     

    (4)
      The
      Bank shall fully and timely comply with any OCC request for information, and
      shall ensure that each Insider fully and timely complies with any OCC request
      for information.

     

    (5)
      The
      Bank shall comply with all applicable laws and regulations, including, but
      not
      limited to, 12 U.S.C. § 29, 12 U.S.C. § 161, 12 C.F.R. Part 5 and 12 C.F.R. §
7.1000.

     

    (6)
      The
      Bank shall implement and adhere to the recommendations contained in OCC Bulletin
      OCC 2001-47.

     

    (7)
      The
      Bank shall not take any action or make, nor permit any Bank officer, director,
      employee or agent, to take any action or to make, any public statement denying,
      directly or indirectly, the specific acts, omissions, or violations referenced
      in this Order or otherwise creating the impression that this Order is without
      factual basis, other than in defense to any charges made in any administrative,
      criminal, or civil proceeding.

    

    ARTICLE
      VI

    Definitions

     

    (1)
      The
      term “Coordinated Transaction” means any transaction involving the sharing or
      division of costs or benefits with the Bank.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (2)
      The
      term “Insider” means any Bank director or senior executive
      officer.  The terms “director” and “senior executive officer” shall
      have the same meanings as the definitions of those terms in 12 C.F.R. §
5.51.

     

    (3)
      The
      term “Insider-Related Party” means Vernon W. Hill, II, John P. Silvestri,
      Kenneth E. Lowther, Nickolas W. Jekogian, III, Shirley Hill, Robert Hill, Vernon
      W. Hill, III, or any member of their Immediate Family; any member of the
      Immediate Family of an Insider; and any entity in which an Insider, Vernon
      W.
      Hill, II, John P. Silvestri, Kenneth E. Lowther, Nicholas W. Jekogian, III,
      Shirley Hill, Robert Hill, Vernon W. Hill, III, or any member of their Immediate
      Family is a partner, officer, director, employee, agent, shareholder, member
      or
      holder of some other financial interest.  Notwithstanding anything in
      this Order to the contrary, the term “Insider-Related Party” does not include
      Commerce Bank/Harrisburg, N.A. or Pennsylvania Commerce Bancorp
      Inc.

     

    (4)
      Any
      shareholder, member or holder of some other financial interest in an entity
      that
      controls a second entity shall be considered a holder of a financial interest
      in
      that second entity.  The term “control” has the same meaning as that
      term is given in 12 U.S.C. § 371c.

     

    (5)
      For
      purposes of this Order, the term "Immediate Family" means (a) any spouse,
      parents, children, brothers, sisters, mother-in-law, father-in-law, sons-in-law,
      daughters-in-law, brothers-in-law and sisters-in-law, and (b) anyone (other
      than
      domestic employees) who shares the person’s home.

     

    (6)
      The
      term “Investigative Service” means that entity which is described in Article I
      of this Order.

     

    (7)
      The
      term “Vendor” means any entity or individual that the Bank has contracted with
      or otherwise retained, or is contemplating contracting with or otherwise
      retaining, to provide any goods or services to the Bank, and is expected to
      receive more than $100,000 from the Bank in a calendar year, or who received
      more than $100,000 from the Bank in the immediately preceding calendar
      year.  Provided, however, the term “Vendor” does not include entities
      or individuals that are RE Principals, RE Principal Agents, RE Service Providers
      or RE Subcontractors.

     

    (8)
      The
      term “Real Estate Related Activity” means any transaction by or with the Bank
      involving real estate or real estate improvements, whether relating to new
      or
      existing facilities, and includes, but is not limited to, the purchase by or
      lease to the Bank of land or real estate improvements, the sale by or lease
      from
      the Bank of land or real estate improvements, real estate brokerage activity,
      work relating to obtaining local approvals and permits, construction management,
      site development, real estate consulting services, all aspects of construction
      (e.g., carpentry, roofing, electricity, lighting, water, sewage,
      utilities, painting, roads, driveways, sidewalks, parking lots), architecture,
      interior design, interior decoration, landscaping, surveys, appraisal services,
      escrow services, title services, real estate legal services, procurement and
      maintenance of furniture or fixtures, space planning and management and
      renovations.

     

    (9)
      The
      term “RE Principal” means, with respect to any land or real estate improvements,
      each entity that is the actual or proposed seller, buyer, lessor or lessee,
      and
      any party to a Coordinated Transaction involving Real Estate Related
      Activity.

     

    (10)
      The
      term “RE Principal Agent” means each entity acting on behalf of a RE Principal
      in a transaction, including, but not limited to, each real estate agent or
      broker acting on behalf of a RE Principal, or expected to be paid by a RE
      Principal in a transaction.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (11)
      The
      term “RE Service Provider” means any entity, which, pursuant to a contract,
      agreement or understanding with the Bank, performs or is proposed to perform
      work relating to Real Estate Related Activity and is expected to receive more
      than $100,000 from the Bank in a calendar year, or who received more than
      $100,000 from the Bank in the immediately preceding calendar year.

     

    (12)
      The
      term “RE Subcontractor” means any entity, which, pursuant to a contract,
      agreement or understanding with a RE Service Provider relating to Real Estate
      Related Activity, is expected to receive more than $100,000 in a calendar year,
      or who received more than $100,000 in the immediately preceding calendar
      year.

     

    (13)
      The
      term “InterArch, Inc.” means InterArch, Inc., any other names by which
      InterArch, Inc. is known, and all successor entities to InterArch,
      Inc.

     

    (14)
      The
      term “Interstate Commercial Real Estate, Inc.” means Interstate Commercial Real
      Estate, Inc., any other names by which Interstate Commercial Real Estate, Inc.
      is known, and all successor entities to Interstate Commercial Real Estate,
      Inc.

     

    (15)
      The
      term “Transition Plan” means that plan described in Article II of this
      Order.

     

    (16)
      The
      term “Real Estate Review Committee” means that committee which is described in
      Article III of this Order.

     

    (17)
      The
      term “Charter” means that charter which is described in Article III of this
      Order.

     

    (18)  The
      term “Management Plan” means that plan which is described in Article IV of this
      Order.

     

    ARTICLE
      VII

    Closing

     

    (1)
      Although the Bank is required to submit certain proposed actions, policies
      and
      procedures for the review by the OCC, and the OCC may provide written notice
      to
      the Bank that it does not object to such proposed actions, policies or
      procedures, the Board has the ultimate responsibility for proper and sound
      management of the Bank.

     

    (2)
      It is
      expressly and clearly understood that if at any time the Comptroller deems
      it
      appropriate in fulfilling the responsibilities placed upon him by the several
      laws of the United States of America to undertake any action affecting the
      Bank,
      nothing in this Order shall in any way inhibit, estop, bar or otherwise prevent
      the Comptroller from doing so.

     

    (3)
      Any
      time limitations imposed by this Order shall begin to run from the effective
      date of this Order, unless otherwise stated.  All submissions required
      to be made pursuant to this Order shall be addressed to:

     

        Jennifer
      C. Kelly

        Deputy
      Comptroller

        Mid-Size
      Bank Supervision

        Office
      of the Comptroller of the Currency

        250
      E. Street, S.W.

        Washington,
      D.C.  20219

     

    (4)
      The
      provisions of this Order are effective upon issuance of this Order by the
      Comptroller, through his authorized representative whose hand appears below,
      and
      shall remain effective and enforceable, except to the extent that, and until
      such time as, any provisions of this Order shall have been amended, suspended,
      waived, or terminated in writing by the Comptroller.

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (5)
      In
      each instance in this Order in which the Bank or the Board is required to ensure
      adherence to, and undertake to perform certain obligations of the Bank, it
      is
      intended to mean that the Board shall:

     

    
      	
               

            	
              (a)
                Authorize and adopt such actions on behalf of the Bank as may be
                necessary
                for the Bank to perform its obligations and undertakings pursuant
                to the
                terms of this Order;

            

      	 	 

    

    
      	
               

            	
              (b)
                Require the timely reporting by Bank management of such actions directed
                by the Board to be taken pursuant to the terms of this
                Order;

            

      	 	 

    

    
      	
               

            	
              (c)
                Follow-up on any non-compliance with such actions in a timely and
                appropriate manner; and

            

      	 	 

    

    
      	
               

            	
              (d)
                Require corrective action be taken in a timely manner of any
                non-compliance with such actions.

            

    

     

    (6)
      This
      Order is intended to be, and shall be construed to be, a final order issued
      pursuant to 12 U.S.C. § 1818(b), and expressly does not form, and may not be
      construed to form, a contract binding on the Comptroller or the United
      States.

     

    (7)
      The
      terms of this Order, including this paragraph, are not subject to amendment
      or
      modification by any extraneous expression, prior agreements or prior
      arrangements between the parties, whether oral or written.

     

    IT
      IS SO ORDERED, this __ day of June, 2007.

    

    

    

    Timothy
      W. Long

    Senior
      Deputy Comptroller

    Mid-Size/Community
      Bank Supervision

     

     8

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