Document:

364 Day Revolving Credit Agreement

 
Exhibit 4.7

 
364-DAY REVOLVING CREDIT AGREEMENT

 
Dated as of October 4, 2002 
 
among 
 
NUCOR CORPORATION 
as Borrower 
 
THE LENDERS NAMED HEREIN 
 
AND 
 
WACHOVIA BANK, NATIONAL ASSOCIATION, 
as Administrative
Agent 
 
BANK OF AMERICA, N.A., 
as Syndication Agent 
 
BANK ONE, NA and CIBC WORLD MARKETS, 
as Co-Documentation Agents 
 
Arranged By: 
 
WACHOVIA SECURITIES,
INC., 
and 
BANC OF AMERICA SECURITIES LLC, 
as Co-Lead Arrangers and Joint Book Runners 
 
 

 
TABLE OF
CONTENTS 
 
ARTICLE I 
 
DEFINITIONS 
 

	 1.1
	  	 Definitions.
	    	 1

	 1.2
	  	 Computation of Time Periods and Dollar Equivalents.
	    	 14

	 1.3
	  	 Accounting Terms.
	    	 15

	 1.4
	  	 Exchange Rates; Currency Equivalents.
	    	 15

	 1.5
	  	 Redenomination of Certain Available Foreign Currencies.
	    	 15

 
ARTICLE II 
 
CREDIT
FACILITIES 
 

	 2.1
	  	 Revolving Loans.
	    	 16

	 2.2
	  	 Competitive Loan Subfacility.
	    	 18

	 2.3
	  	 Letter of Credit Subfacility.
	    	 21

 
ARTICLE III 
 
OTHER
PROVISIONS RELATING TO CREDIT FACILITIES 
 

	 3.1
	  	 Default Rate.
	    	 25

	 3.2
	  	 Extension and Conversion.
	    	 25

	 3.3
	  	 Prepayments.
	    	 26

	 3.4
	  	 Termination and Reduction of Commitments.
	    	 26

	 3.5
	  	 Fees.
	    	 27

	 3.6
	  	 LIBOR Reserve Compensation.
	    	 28

	 3.7
	  	 Capital Adequacy.
	    	 28

	 3.8
	  	 Unavailability.
	    	 28

	 3.9
	  	 Illegality.
	    	 29

	 3.10
	  	 Requirements of Law.
	    	 30

	 3.11
	  	 Inability To Determine Interest Rate.
	    	 31

	 3.12
	  	 Replacement of Lenders.
	    	 31

	 3.13
	  	 Taxes.
	    	 32

	 3.14
	  	 Indemnity.
	    	 34

	 3.15
	  	 Pro Rata Treatment.
	    	 35

	 3.16
	  	 Sharing of Payments.
	    	 36

	 3.17
	  	 Payments, Computations, Etc.
	    	 36

	 3.18
	  	 Obligation of Lenders to Mitigate.
	    	 38

	 3.19
	  	 Evidence of Debt.
	    	 39

	 3.20
	  	 Indemnification; Nature of Issuing Lender’s Duties.
	    	 39

 

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ARTICLE IV

 
CONDITIONS 
 

	 4.1
	  	 Conditions to Closing.
	    	 41

	 4.2
	  	 Conditions to All Extensions of Credit.
	    	 42

 
ARTICLE V 
 
REPRESENTATIONS AND WARRANTIES 
 

	 5.1
	  	 Financial Condition.
	    	 43

	 5.2
	  	 Organization; Existence.
	    	 44

	 5.3
	  	 Power; Authorization; Enforceable Obligations.
	    	 44

	 5.4
	  	 Conflict.
	    	 44

	 5.5
	  	 No Material Litigation.
	    	 45

	 5.6
	  	 No Default.
	    	 45

	 5.7
	  	 Taxes.
	    	 45

	 5.8
	  	 ERISA
	    	 45

	 5.9
	  	 Governmental Regulations, Etc.
	    	 46

	 5.10
	  	 Purpose of Extensions of Credit.
	    	 47

	 5.11
	  	 Compliance with Laws; Contractual Obligations.
	    	 47

	 5.12
	  	 Accuracy and Completeness of Information.
	    	 47

	 5.13
	  	 Environmental Matters.
	    	 47

 
ARTICLE VI 
 
AFFIRMATIVE
COVENANTS 
 

	 6.1
	  	 Financial Statements.
	    	 48

	 6.2
	  	 Certificates; Other Information.
	    	 49

	 6.3
	  	 Notices.
	    	 50

	 6.4
	  	 Maintenance of Existence and Compliance with Law.
	    	 50

	 6.5
	  	 Maintenance of Property; Insurance.
	    	 51

	 6.6
	  	 Inspection of Property; Books and Records; Discussions.
	    	 51

	 6.7
	  	 Consolidated Funded Debt to Total Capitalization Ratio.
	    	 51

	 6.8
	  	 Use of Proceeds.
	    	 51

 
ARTICLE VII 
 
NEGATIVE
COVENANTS 
 

	 7.1
	  	 Funded Debt of Subsidiaries.
	    	 52

	 7.2
	  	 Negative Pledge.
	    	 52

	 7.3
	  	 Consolidation, Merger and Sale of Assets.
	    	 54

	 7.4
	  	 Transactions with Affiliates.
	    	 54

	 7.5
	  	 Permitted Investments.
	    	 54

	 7.6
	  	 Limitation on Certain Restrictions
	    	 54

 

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ARTICLE VIII

 
EVENTS OF DEFAULT 
 

	 8.1
	  	 Events of Default.
	    	 55

	 8.2
	  	 Acceleration; Remedies.
	    	 57

 
ARTICLE IX 
 
AGENCY
PROVISIONS 
 

	 9.1
	  	 Appointment.
	    	 58

	 9.2
	  	 Delegation of Duties.
	    	 58

	 9.3
	  	 Exculpatory Provisions.
	    	 58

	 9.4
	  	 Reliance on Communications.
	    	 59

	 9.5
	  	 Notice of Default.
	    	 59

	 9.6
	  	 Non-Reliance on Administrative Agent and Other Lenders.
	    	 60

	 9.7
	  	 Indemnification.
	    	 60

	 9.8
	  	 Administrative Agent in its Individual Capacity.
	    	 61

	 9.9
	  	 Successor Administrative Agent.
	    	 61

	 9.10
	  	 Other Agents, Arrangers and Book Runners.
	    	 61

 
ARTICLE X 
 
MISCELLANEOUS

 

	 10.1
	  	 Notices.
	    	 62

	 10.2
	  	 Right of Set-Off.
	    	 63

	 10.3
	  	 Benefit of Agreement.
	    	 63

	 10.4
	  	 No Waiver; Remedies Cumulative.
	    	 66

	 10.5
	  	 Payment of Expenses, etc.
	    	 66

	 10.6
	  	 Amendments, Waivers and Consents.
	    	 67

	 10.7
	  	 Counterparts.
	    	 68

	 10.8
	  	 Headings.
	    	 68

	 10.9
	  	 Survival.
	    	 68

	 10.10
	  	 Governing Law; Submission to Jurisdiction; Venue.
	    	 68

	 10.11
	  	 Confidentiality.
	    	 69

	 10.12
	  	 Severability.
	    	 70

	 10.13
	  	 Entirety.
	    	 70

	 10.14
	  	 Binding Effect; Termination.
	    	 70

	 10.15
	  	 Judgment Currency.
	    	 70

 

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SCHEDULES

 

	 Schedule 1.1(a)
	  	 Form of Account Designation Letter

	 Schedule 1.1(b)
	  	 Joint Ventures

	 Schedule 2.1(a)
	  	 Schedule of Lenders and Commitments

	 Schedule 2.1(b)(i)
	  	 Form of Notice of Borrowing

	 Schedule 2.1(e)
	  	 Form of Revolving Note

	 Schedule 2.2(b)-1
	  	 Form of Competitive Bid Request

	 Schedule 2.2(b)-2
	  	 Form of Notice of Receipt of Competitive Bid Request

	 Schedule 2.2(c)
	  	 Form of Competitive Bid

	 Schedule 2.2(e)
	  	 Form of Competitive Bid Accept/Reject Letter

	 Schedule 3.2
	  	 Form of Notice of Extension/Conversion

	 Schedule 3.17(b)
	  	 Place of Payments

	 Schedule 4.1(c)(v)
	  	 Secretary’s Certificate

	 Schedule 5.5
	  	 Description of Legal Proceedings

	 Schedule 5.7
	  	 Taxes

	 Schedule 5.13
	  	 Environmental Matters

	 Schedule 6.2(a)
	  	 Form of Officer’s Compliance Certificate

	 Schedule 7.1
	  	 Subsidiary Funded Debt

	 Schedule 7.2
	  	 Liens

	 Schedule 10.1
	  	 Notices

	 Schedule 10.3(b)
	  	 Form of Assignment and Acceptance

 
 

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364-DAY
REVOLVING CREDIT AGREEMENT 
 
THIS 364-DAY
REVOLVING CREDIT AGREEMENT dated as of October 4, 2002 (the “Credit Agreement”), is by and among NUCOR CORPORATION, a Delaware corporation (the “Borrower”), the lenders named herein and such other lenders as
may become a party hereto (the “Lenders”), WACHOVIA BANK, NATIONAL ASSOCIATION, as Administrative Agent (in such capacity, the “Administrative Agent”) and BANK OF AMERICA, N.A., as Syndication Agent (in such
capacity, the “Syndication Agent”). 
 
W I T N E S S E T H 
 
WHEREAS, the
Borrower has requested that the Lenders provide a $125 million revolving credit facility for the purposes hereinafter set forth; and 
 
WHEREAS, the Lenders have agreed to make the requested credit facility available to the Borrower on the terms and conditions hereinafter
set forth; 
 
NOW, THEREFORE, IN CONSIDERATION of
the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 
 
 
ARTICLE I 
 
DEFINITIONS

 

	 	1.1	 	Definitions. 

 
As used in this Credit Agreement, the following terms shall have the meanings specified below unless the context otherwise requires:

 
“Account Designation Letter”
means the Notice of Account Designation Letter dated the date hereof from the Borrower to the Administrative Agent in substantially the form attached hereto as Schedule 1.1(a). 
 
“Administrative Agent” shall have the meaning assigned to such term in the heading hereof,
together with any successors or assigns. 
 
“Administrative Agent’s Fees” shall have the meaning assigned to such term in Section 3.5(e). 
 
“Administrative Agent’s Fee Letter” means that certain letter agreement, dated as of July 17, 2002, between the
Administrative Agent and the Borrower, as amended, modified, supplemented or replaced from time to time. 
 
“Affected Lender” means such term as defined in Section 3.9(a). 
 
“Affiliate” means as to any Person, any other
Person which, directly or indirectly, is in control of, is controlled by, or is under common control with, such Person. For purposes of this definition, a Person shall be deemed to be “controlled by” a Person if such Person possesses,

 

1 

 
directly or indirectly, power
either (a) to vote 10% or more of the securities having ordinary voting power for the election of directors of such Person or (b) to direct or cause the direction of the management and policies of such Person whether by contract or otherwise.

 
“Agents” means the
Administrative Agent and Syndication Agent.  
 
“Aggregate Commitment” means, for any Utilization Period, the sum of the Aggregate Revolving Committed Amount under this Agreement and the aggregate amount of revolving commitments under the Multi-Year Credit
Agreement. 
 
“Aggregate Revolving
Committed Amount” means the aggregate amount of Revolving Commitments in effect from time to time, being initially ONE HUNDRED AND TWENTY-FIVE MILLION DOLLARS ($125,000,000). 
 
“Applicable Percentage” means for any day,
the rate per annum set forth below opposite the applicable rating for the Borrower’s senior unsecured (non-credit enhanced) long term debt then in effect, it being understood that the Applicable Percentage for (i) Base Rate Loans shall be the
percentage set forth under the appropriate column “Base Rate Margin” based on the Utilization, (ii) LIBOR Loans shall be the percentage set forth under the appropriate column “LIBOR Margin” based on the Utilization, (iii) the
Facility Fee shall be the percentage set forth under the column “Facility Fee,” and (iv) the Letter of Credit Fee shall be the percentage set forth under the column “LIBOR Margin” based on the Utilization: 
 

	 Pricing Level
	  	 Rating (S&P/
 Moody’s)

	  	 Base Rate Margin

	 	  	 LIBOR
 Margin

	 	  	 Base Rate Margin

	 	  	 LIBOR Margin

	 	  	 Facility
 Fee

	 
	 	  	
	  	
	
	  	
	
	  	
	
	  	
	
	  	
	

	 	  	 Utilization <50%
	  	 Utilization <50%

	 	  	
	  	
	
	  	
	
	  	
	
	  	
	
	  	
	

	 	  	
	  	
	
	  	
	
	  	
	
	  	
	
	  	
	

	 I
	  	 AA-/Aa3 or above
	  	 0
	  
	  	 .16
	 %
	  	 .05
	 %
	  	 .21
	 %
	  	 .04
	 %

	 	  	
	  	
	
	  	
	
	  	
	
	  	
	
	  	
	

	 II
	  	 A+/A1
	  	 0
	  
	  	 .19
	 %
	  	 .05
	 %
	  	 .24
	 %
	  	 .06
	 %

	 	  	
	  	
	
	  	
	
	  	
	
	  	
	
	  	
	

	 III
	  	 A/A2
	  	 0
	  
	  	 .32
	 %
	  	 .075
	 %
	  	 .395
	 %
	  	 .08
	 %

	 	  	
	  	
	
	  	
	
	  	
	
	  	
	
	  	
	

	 IV
	  	 A-/A3
	  	 0
	  
	  	 .40
	 %
	  	 .075
	 %
	  	 .475
	 %
	  	 .10
	 %

	 	  	
	  	
	
	  	
	
	  	
	
	  	
	
	  	
	

	 V
	  	 BBB+/Baa1 or lower
	  	 0.025
	 %
	  	 .625
	 %
	  	 .125
	 %
	  	 .725
	 %
	  	 .15
	 %

	 	  	
	  	
	
	  	
	
	  	
	
	  	
	
	  	
	

 
The numerical
classification set forth under the column “Pricing Level” shall be established based on the better of ratings by S&P and Moody’s for the Borrower’s senior unsecured (non-credit enhanced) long term debt, provided that such
ratings are not more than one Pricing Level apart; and at the Pricing Level immediately above the lower of the ratings by S&P and Moody’s in the event the ratings are more than one Pricing Level apart. The Applicable Percentage shall be
determined and adjusted quarterly on the date five (5) Business Days after the end of each calendar quarter (each a “Rate Determination Date”) based on the debt rating in effect on the last day of the preceding calendar quarter and
shall be effective until the next Rate Determination Date. Adjustments in the Applicable Percentage shall be effective as to all Loans, existing and 
 

2 

 
prospective, from the date of
adjustment. The Administrative Agent shall promptly notify the Lenders of changes in the Applicable Percentage. 
 
“Attributed Principal Amount” means (i) in the case of Capital Leases, the amount of capital lease obligations determined
in accordance with GAAP, (ii) in the case of Synthetic Leases, an amount determined by capitalization of the remaining lease payments thereunder as if it were a Capital Lease determined in accordance with GAAP, and (iii) in the case of
Securitization Transactions, the outstanding principal amount of such financing, after taking into account and making appropriate adjustments, determined by the Administrative Agent in its reasonable judgment. 
 
“Available Foreign Currency” means (i) Euros,
Canadian Dollars, British Pounds Sterling, Swiss Francs and Japanese Yen and (ii) any other freely available currency which is freely transferable and freely convertible into Dollars and in which dealings in deposits are carried on in the London
interbank market, which shall be requested by the Borrower and approved by each Lender. 
 
“Average Outstanding Loans” means, for any Utilization Period, the sum of the aggregate principal amount of Obligations outstanding under this Agreement and loans and letter of credit
obligations outstanding under the Multi-Year Credit Agreement as of the end of each day during such Utilization Period, divided by the number of days in such Utilization Period. 
 
“Bank Secrecy Act” means 31 U.S.C. §§ 5311 et seq., as amended from
time to time, and any successor statute, and all rules and regulations from time to time promulgated thereunder. 
 
“Base Rate” means, for any day, the rate per annum (rounded upwards, if necessary, to the nearest whole multiple of 1/100
of 1%) equal to the greater of (a) the Federal Funds Rate in effect on such day plus 1⁄2 of 1% or (b) the Prime Rate in effect on such day. If for any reason the Administrative Agent shall have reasonably determined (which determination
shall be conclusive absent manifest error) that it is unable after due inquiry to ascertain the Federal Funds Rate for any reason, including the inability or failure of the Administrative Agent to obtain sufficient quotations in accordance with the
terms hereof, the Base Rate shall be determined without regard to clause (a) of the first sentence of this definition until the circumstances giving rise to such inability no longer exist. Any change in the Base Rate due to a change in the Prime
Rate or the Federal Funds Rate shall be effective on the effective date of such change in the Prime Rate or the Federal Funds Rate, respectively. 
 
“Base Rate Loan” means any Loan bearing interest at a rate determined by reference to the Base Rate. 
 
“Borrower” means Nucor Corporation, a
Delaware corporation, as referenced in the opening paragraph, its successors and permitted assigns. 
 
“Business Day” means any day other than a Saturday, Sunday or legal holiday on which commercial banks are open for
business in Charlotte, North Carolina and New York, New York; except that when used in connection with a LIBOR Loan, such day shall also be a day on which dealings between banks are carried on in London, England in deposits of Dollars or Available
Foreign Currencies, as applicable. “Business Day” shall also exclude any day on which banks are closed for dealings when used in connection with Foreign Currency Loans. “Business Day” 
 

3 

 
shall also exclude any day on
which banks are not open for foreign exchange dealings between banks in the exchange of the home country of such foreign currency. 
 
“Capital Lease” means, as applied to any Person, any lease of any Property (whether real, personal or mixed) by that
Person as lessee which, in accordance with GAAP, is or should be accounted for as a capital lease on the balance sheet of that Person. 
 
“Code” means the Internal Revenue Code of 1986, as amended, and any successor statute thereto, as interpreted by the
rules and regulations issued thereunder, in each case as in effect from time to time. References to sections of the Code shall be construed also to refer to any successor sections. 
 
“Commitment” means the Revolving Commitment, including the LOC Commitment, as a subfacility
thereof. 
 
“Commitment Period”
means the period from and including the Effective Date to but not including the earlier of (i) the Termination Date, or (ii) the date on which the Commitments terminate in accordance with the provisions of this Credit Agreement. 
 
“Committed Obligations” means Revolving
Loans, including the LOC Obligations, as a subfacility of the Revolving Loans. 
 
“Competitive Bid” means an offer by a Lender to make a Competitive Loan pursuant to the terms of Section 2.2. 
 
“Competitive Bid Rate” means, as to any Competitive Bid made by a Lender in accordance with
the provisions of Section 2.2, the fixed rate of interest offered by the Lender making the Competitive Bid. 
 
“Competitive Bid Request” means a request by the Borrower for Competitive Bids in accordance with the provisions of
Section 2.2(b). 
 
“Competitive Bid Request
Fee” means such fee, if any, agreed upon by the Borrower and the Administrative Agent payable in connection with each Competitive Bid Request. 
 
“Competitive Bid Request Fee Letter” means that certain letter agreement, dated as of October 4, 2002, between the
Administrative Agent and the Borrower, as amended, modified, supplemented or replaced from time to time. 
 
“Competitive Loan” means a loan made by a Lender in its discretion pursuant to the provisions of Section 2.2.

 
“Competitive Loan Lenders”
means, at any time, those Lenders which have Competitive Loans outstanding. 
 
“Competitive Loan Maximum Amount” shall have the meaning assigned to such term in Section 2.2(a). 
 

4 

 
“Consolidated Funded Debt” means Funded Debt of the Borrower and its subsidiaries on a consolidated basis in accordance with GAAP. 
 
“Consolidated Funded Debt to Total Capitalization Ratio” means the ratio of Consolidated
Funded Debt to Consolidated Total Capitalization. 
 
“Consolidated Group” means the Borrower and its consolidated subsidiaries as determined in accordance with GAAP. 
 
“Consolidated Net Worth” means shareholders’ equity or net worth of the Borrower and its subsidiaries on a
consolidated basis determined in accordance with GAAP. 
 
“Consolidated Total Capitalization” means the sum of Consolidated Funded Debt plus Consolidated Net Worth. 
 
“Credit Documents” means a collective reference to this Credit Agreement, the Notes, the Administrative Agent’s Fee
Letter, the Competitive Bid Request Fee Letter, the LOC Documents and all other related agreements and documents issued or delivered hereunder or thereunder or pursuant hereto or thereto. 
 
“Default” means any event, act or condition which with notice or lapse of time, or both,
would constitute an Event of Default. 
 
“Defaulting Lender” means, at any time, any Lender that, at such time, (i) has failed to make a Loan or fund a participation interest required pursuant to the terms of this Credit Agreement, (ii) has failed to pay to
the Administrative Agent or any Lender an amount owed by such Lender pursuant to the terms of the Credit Agreement or any other of the Credit Documents, or (iii) has been deemed insolvent or has become subject to a bankruptcy or insolvency
proceeding or to a receiver, trustee or similar proceeding. 
 
“Determination Date” means with respect to any Extension of Credit: 
 

	 	(a)	 	in connection with the origination of any new Extension of Credit, the Business Day which is the earliest of the date such credit is extended, the date the rate is
set or the date the bid is accepted, as applicable; 

 

	 	(b)	 	in connection with any extension or conversion or continuation of an existing Loan, the last Business Day of each month or the Business Day which is the earlier of
the date such advance is extended, converted or continued, or the date the rate is set, as applicable, in connection with any extension, conversion or continuation; 

 

	 	(c)	 	in connection with any extension of an existing Letter of Credit, the last Business Day of each month or the Business Day which is the earlier of the date such
Letter of Credit is extended; or 

 

	 	(d)	 	the date of any reduction of the Revolving Committed Amount pursuant to the terms of Section 3.4; and 

 

5 

 
in addition to the foregoing,
an additional date each month to be determined by the Administrative Agent. For purposes of determining availability hereunder, the rate of exchange for Available Foreign Currency shall be the Spot Rate. 
 
“Dollar Amount” means (a) with respect to
Dollars or an amount denominated in Dollars, such amount and (b) with respect to an amount of any Foreign Currency or an amount denominated in such Foreign Currency, the Dollar Equivalent of such amount on the applicable date contemplated in this
Credit Agreement. 
 
“Dollar
Equivalent” means, at any time, (a) with respect to any amount denominated in Dollars, such amount, and (b) with respect to any amount denominated in any Foreign Currency, the equivalent amount thereof in Dollars as determined by the
Administrative Agent at such time on the basis of the Spot Rate (determined in respect of the most recent Revaluation Date and inclusive of all reasonable related costs of conversion, if any, that are actually incurred) for the purchase of Dollars
with such Foreign Currency. 
 
“Dollars” and “$” means dollars in lawful currency of the United States of America. 
 
“Effective Date” means the date hereof. 
 
“EMU” means Economic and Monetary Union as contemplated in the Treaty on European Union.

 
“EMU Legislation” means
legislative measures of the European Council (including without limitation European Council regulations) for the introduction of, changeover to or operation of a single or unified European currency (whether known as the Euro or otherwise), being in
part the implementation of the third stage of EMU. 
 
“Environmental Laws” means any and all applicable foreign, federal, state, local or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees, requirements or any Governmental Authority or
other Requirement of Law regulating, relating to or imposing liability or standards of conduct concerning protection of human health or the environment, as now or may at any time be in effect during the term of this Credit Agreement. 
 
“ERISA” means the Employee Retirement Income
Security Act of 1974, as amended, and any successor statute thereto, as interpreted by the rules and regulations thereunder, all as the same may be in effect from time to time. References to sections of ERISA shall be construed also to refer to any
successor sections. 
 
“ERISA
Affiliate” means an entity, whether or not incorporated, which is under common control with the Borrower within the meaning of Section 4001(a)(14) of ERISA, or is a member of a group which includes the Borrower and which is treated as a
single employer under Sections 414(b) or (c) of the Code. 
 
“ERISA Event” means (i) with respect to any Single Employer Plan or Multiple Employer Plan, the occurrence of a Reportable Event; (ii) the withdrawal by the Borrower, any Subsidiary of the Borrower or any ERISA
Affiliate from a Multiple Employer Plan during a plan year in which it was a substantial employer (as such term is defined in Section 4001(a)(2) of ERISA), or the termination of a Multiple Employer Plan; (iii) the distribution of a notice of

 

6 

 
intent to terminate or the
actual termination of a Plan pursuant to Section 4041(a)(2) or 4041A of ERISA; (iv) the institution of proceedings to terminate or the actual termination of a Plan by the PBGC under Section 4042 of ERISA; (v) any event or condition which could
reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan; (vi) the complete or partial withdrawal of the Borrower, any Subsidiary of the Borrower or any
ERISA Affiliate from a Multiemployer Plan or the receipt by the Borrower, any Subsidiary or any ERISA Affiliate that a Multiemployer Plan is in reorganization; (vii) the conditions for imposition of a lien under Section 302(f) of ERISA exist with
respect to any Plan; or (vii) the adoption of an amendment to any Plan requiring the provision of security to such Plan pursuant to Section 307 of ERISA. 
 
“Euro” means the single currency of Participating Member States of the European Union. 
 
“Euro Unit” means the currency unit of the
Euro. 
 
“Event of Default” means
such term as defined in Section 8.1. 
 
“Extension of Credit” means, as to any Lender, the making of a Loan by such Lender or the issuance of, or participation in, a Letter of Credit by such Lender. 
 
“Fees” means all fees payable pursuant to
Section 3.5. 
 
“Federal Funds
Rate” means, for any day, the rate of interest per annum (rounded upwards, if necessary, to the nearest whole multiple of 1/100 of 1%) equal to the weighted average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day, provided that (A) if such day is not a Business Day, the Federal Funds
Rate for such day shall be such rate on such transactions on the next preceding Business Day and (B) if no such rate is so published on such next preceding Business Day, the Federal Funds Rate for such day shall be the average rate quoted to the
Administrative Agent on such day on such transactions as reasonably determined by the Administrative Agent. 
 
“Foreign Currency” means Available Foreign Currency. 
 
“Foreign Currencies Committed Amount” shall have the meaning assigned to such term in
Section 2.1(a). 
 
“Foreign Currency
Equivalent” means, at any time, with respect to any amount denominated in Dollars, the equivalent amount thereof in the applicable Available Foreign Currency as determined by the Administrative Agent at such time on the basis of the Spot
Rate (determined in respect of the most recent Revaluation Date) for the purchase of such Available Foreign Currency with Dollars. 
 
“Foreign Currency Loan” means any Loan denominated in an Available Foreign Currency. 
 
“Funded Debt” means, with respect to any
Person, without duplication, (i) all indebtedness for borrowed money, (ii) all obligations evidenced by bonds, debentures, notes or 
 

7 

 
similar instruments, or upon
which interest payments are customarily made, (iii) all obligations to pay the deferred purchase price of property or services, except trade accounts payable arising in the ordinary course of business, (iv) the Attributed Principal Amount of Capital
Leases, Securitization Transactions and Synthetic Leases, (v) all Funded Debt of any partnership or joint venture, but only to the extent (A) of recourse to such Person for payment thereof or (B) that, for purposes of Section 6.7 hereof, such Funded
Debt of such partnership or joint venture is consolidated, in accordance with GAAP, in the financial statements of the Consolidated Group, (vi) the maximum amount of standby letters of credit issued or bankers’ acceptance facilities created for
the account of such Person, and (vii) Support Obligations in respect of Funded Debt of another Person in connection with, related to or supporting Funded Debt or issued as performance-based letters of credit (other than trade letters of credit).
 
 
“GAAP” means generally
accepted accounting principles in the United States applied on a consistent basis and subject to the terms of Section 1.3 hereof. 
 
“Government Acts” has the meaning set forth in Section 3.20. 
 
“Governmental Authority” means any Federal, state, local or foreign court or governmental
agency, authority, commission, instrumentality or regulatory body. 
 
“Interest Payment Date” means (i) as to any Base Rate Loan, the last day of each March, June, September and December, the date of repayment of principal of such Loan and the later of (A) the Termination Date
or (B) if applicable, the extended repayment date set forth in Section 2.1(g) and (ii) as to any LIBOR Loan or Competitive Loan, the last day of each Interest Period for such Loan, the date of repayment of principal of such Loan and on the later of
(A) the Termination Date or (B) if applicable, the extended repayment date set forth in Section 2.1(g), and in addition where the applicable Interest Period is more than three months, then also on the date three months from the beginning of the
Interest Period, and each three months thereafter. If an Interest Payment Date falls on a date which is not a Business Day, such Interest Payment Date shall be deemed to be the next succeeding Business Day, except that in the case of LIBOR Loans
where the next succeeding Business Day falls in the next succeeding calendar month, then on the next preceding Business Day. 
 
“Interest Period” means, (i) as to any LIBOR Loan, a period of one, two, three or six month’s duration, as the
Borrower may elect, commencing in each case, on the date of the borrowing (including conversions, extensions and renewals) and (ii) as to any Competitive Loan, a period of not less than 7 nor more than 180 days’ duration, as the Borrower may
request and the Competitive Lender may agree in accordance with the provisions of Section 2.2; provided, however, (A) if any Interest Period would end on a day which is not a Business Day, such Interest Period shall be extended to the
next succeeding Business Day (except that in the case of LIBOR Loans where the next succeeding Business Day falls in the next succeeding calendar month, then on the next preceding Business Day), (B) no Interest Period shall extend beyond the later
of (A) the Termination Date or (B) if applicable, the extended repayment date set forth in Section 2.1(g), and (C) in the case of LIBOR Loans, where an Interest Period begins on a day for which there is no numerically corresponding day in the
calendar month in which the Interest Period is to end, such Interest Period shall end on the last day of such calendar month. 
 

8 

 
“Investment” means all investments, in cash or by delivery of property made, directly or indirectly in, to or from any Person, whether by acquisition of shares of capital stock or other equity interest, property,
assets, indebtedness or other obligations or securities or by loan advance, capital contribution or otherwise. 
 
“Issuing Lender” means Wachovia and, solely with respect to existing letters of credit that become Letters of Credit
under this Agreement pursuant to the last sentence of Section 2.3(a) hereof, Bank of America, N.A. 
 
“Issuing Lender Fees” has the meaning set forth in Section 3.5(d). 
 
“Joint Ventures” means (i) those entities
listed on Schedule 1.1(b) and (ii) any other non-public Subsidiaries in which the Borrower, directly or indirectly, owns and controls less than 80% of the capital stock or other equity interest having ordinary voting power to elect directors
or other managers of such Subsidiary and where the remaining ownership and control of such Subsidiary is held by an independent entity with whom the Borrower, or one of its Subsidiaries, is engaged in a business venture. 
 
“Lenders” means each of the Persons
identified as a “Lender” on the signature pages hereto, and their successors and assigns. 
 
“Letters of Credit” means the letters of credit issued by the Issuing Lender pursuant to the terms hereof, as such
Letters of Credit may be amended, restated, modified, extended, renewed or replaced from time to time. 
 
“Letter of Credit Fee” shall have the meaning set forth in Section 3.5(c). 
 
“LIBOR Loan” means any Loan bearing interest
at a rate determined by reference to the LIBOR Rate. 
 
“LIBOR Rate” means, for any LIBOR Loan for any Interest Period therefor, the rate per annum (rounded upwards, if necessary, to the nearest 1/100th of 1%) appearing on Telerate Page 3750 (or any successor or
equivalent page) as the London interbank offered rate for deposits in Dollars or applicable Available Foreign Currency, as appropriate, at approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period for a
term comparable to such Interest Period. If for any reason such rate is not available, the term “LIBOR Rate” shall mean, for any LIBOR Loan for any Interest Period therefor, the rate per annum (rounded upwards, if necessary, to the nearest
1/100th of 1%) appearing on Reuters Screen LIBO Page as the London interbank offered rate for deposits in Dollars or applicable Available Foreign Currency, as appropriate, at approximately 11:00 a.m. (London time) two Business Days prior to the
first day of such Interest Period for a term comparable to such Interest Period; provided, however, if more than one rate is specified on Reuters Screen LIBO Page, the applicable rate shall be the arithmetic mean of all such rates.

 
“LIBOR Reserve Percentage”
means for any day, that percentage (expressed as a decimal) which is in effect from time to time under Regulation D of the Board of Governors of the Federal Reserve System (or other applicable authority or any successor thereof), as such regulation
may be amended from time to time or any successor regulation, as the maximum 
 

9 

 
reserve requirement
(including, without limitation, any basic, supplemental, emergency, special, or marginal reserves) applicable with respect to eurocurrency liabilities as that term is defined in Regulation D (or against any other category of liabilities that
includes deposits by reference to which the interest rate of LIBOR Loans is determined), whether or not Lender has any eurocurrency liabilities subject to such reserve requirement at that time. LIBOR Loans shall be deemed to constitute eurocurrency
liabilities and as such shall be deemed subject to reserve requirements without benefits of credits for proration, exceptions or offsets that may be available from time to time to a Lender. The LIBOR Rate shall be adjusted automatically on and as of
the effective date of any change in the LIBOR Reserve Percentage. 
 
“Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement, security interest, encumbrance, lien (statutory or otherwise), preference, priority or charge of any kind (including any
conditional sale or other title retention agreement, any financing or similar statement or notice filed under the Uniform Commercial Code as adopted and in effect in the relevant jurisdiction or other similar recording or notice statute, and any
lease in the nature thereof). 
 
“Loan” or “Loans” means the Revolving Loans and/or Competitive Loans, as well as any term loan arising under Section 2.1(g). 
 
“LOC Commitment” means, with respect to the Issuing Lender, the commitment to issue Letters
of Credit and, with respect to each Lender, the commitment of such Lender to purchase participation interests in the Letters of Credit up to such Lender’s LOC Committed Amount. 
 
“LOC Committed Amount” shall have the meaning provided in Section 2.3(a). 
 
“LOC Documents” means, with respect to any
Letter of Credit, such Letter of Credit, any amendments thereto, any documents delivered in connection therewith, any application therefor, and any agreements, instruments, guarantees or other documents (whether general in application or applicable
only to such Letter of Credit) governing or providing for (i) the rights and obligations of the parties concerned or (ii) any collateral security for such obligations. 
 
“LOC Obligations” shall mean, at any time, the sum of (i) the maximum amount which is, or at
any time thereafter may become, available to be drawn under Letters of Credit then outstanding, assuming compliance with all requirements for drawings referred to in such Letters of Credit plus (ii) the aggregate amount of all drawings under
Letters of Credit honored by the Issuing Lender but not theretofore reimbursed. 
 
“Mandatory Borrowing” has the meaning set forth in Section 2.3(e). 
 
“Material Adverse Effect” means a material adverse effect on the business, operations, property or financial condition of
the Borrower and its Subsidiaries taken as a whole. 
 
“Materials of Environmental Concern” shall mean any gasoline or petroleum (including crude oil or any fraction thereof) or petroleum products or any hazardous or toxic substances, materials, or wastes, defined or
regulated as such in or under any Environmental Law, including, without limitation, asbestos, polychlorinated biphenyls and urea-formaldehyde insulation. 
 

10 

 
“Moody’s” means Moody’s Investors Service, Inc., or any successor or assignee of the business of such company in the business of rating securities. 
 
“Multiemployer Plan” means a Plan which is a
multiemployer plan as defined in Sections 3(37) or 4001(a)(3) of ERISA. 
 
“Multiple Employer Plan” means a Plan which the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate and at least one employer other than the Borrower, any Subsidiary of the Borrower or any ERISA
Affiliate are contributing sponsors. 
 
“Multi-Year Credit Agreement” means that Multi-Year Revolving Credit Agreement dated as of the date hereof, as amended and modified, among the Borrower, the Lenders identified therein and Wachovia, as Administrative
Agent. 
 
“National Currency Unit”
means a fraction or multiple of one Euro Unit expressed in units of the former national currency of a Participating Member State. 
 
“Non-Excluded Taxes” means such term as is defined in Section 3.13. 
 
“Note” or “Notes” means any
Revolving Note. 
 
“Notice of
Borrowing” means a written notice of borrowing in substantially the form of Schedule 2.1(b)(i), as required by Section 2.1(b)(i). 
 
“Notice of Extension/Conversion” means the written notice of extension or conversion in substantially the form of
Schedule 3.2, as required by Section 3.2. 
 
“Obligations” means the Loans and LOC Obligations. 
 
“Participating Member State” means each country so described in any EMU Legislation. 
 
“Participation Interest” means the purchase by a Lender of a participation in Loans as provided in Section 3.16 or in
Letters of Credit as provided in Section 2.3. 
 
“PBGC” means the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA and any successor thereof. 
 
“Person” means any individual, partnership, joint venture, firm, corporation, limited
liability company, association, trust or other enterprise (whether or not incorporated) or any Governmental Authority. 
 
“Plan” means any employee benefit plan (as defined in Section 3(3) of ERISA) which is covered by ERISA and with respect
to which the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate is (or, if such plan were terminated at such time, would under Section 4069 of ERISA be deemed to be) an “employer” within the meaning of Section 3(5) of ERISA.

 
“Prime Rate” means the rate of
interest per annum publicly announced from time to time by Wachovia as its prime rate in effect at its principal office in Charlotte, North Carolina, with each change in the Prime Rate being effective on the date such change is publicly announced as

 

11 

 
effective (it being understood
and agreed that the Prime Rate is a reference rate used by Wachovia in determining interest rates on certain loans and is not intended to be the lowest rate of interest charged on any extension of credit by Wachovia to any debtor). 
 
“Property” means any interest in any kind of
property or asset, whether real, personal or mixed, or tangible or intangible. 
 
“Proposed Lender” means such term as defined in Section 3.12. 
 
“Register” shall have the meaning given such term in Section 10.3(c). 
 
“Regulation T, U or X” means Regulation T, U
or X, respectively, of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor to all or a portion thereof. 
 
“Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than those events as to which the
notice requirement has been waived by regulation. 
 
“Requesting Lender” shall have the meaning assigned to such term in Section 3.12. 
 
“Required Lenders” means, at any time, Lenders having more than fifty percent (50%) of the Commitments, or if the
Commitments have been terminated, Lenders having more than fifty percent (50%) of the aggregate principal Dollar Amount (determined as of the most recent Determination Date) of Obligations outstanding (taking into account in each case Participation
Interests or obligation to participate therein); provided that the Commitments of, and outstanding principal Dollar Amount (determined as of the most recent Determination Date) of Obligations (taking into account Participation Interests
therein) owing to, a Defaulting Lender shall be excluded for purposes hereof in making a determination of Required Lenders. 
 
“Requirement of Law” means, as to any Person, the certificate of incorporation and by-laws or other organizational or
governing documents of such Person, and any law (whether statutory or common), treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or to
which any of its property is subject. 
 
“Responsible Officer” means the Chief Executive Officer, President, Chief Financial Officer, the Controller, any Vice President and the Treasurer of the Borrower. 
 
“Revaluation Date” means each of the
following: (a) each date of a making of a LIBOR Loan denominated in an Available Foreign Currency, (b) each date of a continuation of a LIBOR Loan denominated in an Available Foreign Currency; (c) each date of issuance of a Letter of Credit
denominated in an Available Foreign Currency, (d) each date of an amendment of any such Letter of Credit having the effect of increasing the amount thereof, and (e) such additional dates as the Administrative Agent or the Required Lenders shall
specify. 
 
“Revolving Commitment”
means, with respect to each Lender, the commitment of such Lender to make Revolving Loans in an aggregate principal Dollar Amount at any time outstanding of up to such Lender’s Revolving Committed Amount as specified in Schedule

 

12 

 
2.1(a), as such amount
may be reduced from time to time in accordance with the provisions hereof. 
 
“Revolving Commitment Percentage” means, for each Lender, a fraction (expressed as a decimal) the numerator of which is the Revolving Commitment of such Lender at such time and the
denominator of which is the Aggregate Revolving Committed Amount at such time. The initial Revolving Commitment Percentages are set out on Schedule 2.1(a). 
 
“Revolving Committed Amount” means, collectively, the aggregate amount of all of the
Revolving Commitments and, individually, the amount of each Lender’s Revolving Commitment as specified in Schedule 2.1(a). 
 
“Revolving Loans” shall have the meaning assigned to such term in Section 2.1(a). 
 
“Revolving Note” or “Revolving
Notes” means the promissory notes of the Borrower in favor of each of the Lenders evidencing the Revolving Loans and Competitive Loans in substantially the form attached as Schedule 2.1(e), individually or collectively, as
appropriate, as such promissory notes may be amended, modified, supplemented, extended, renewed or replaced from time to time. 
 
“S&P” means Standard & Poor’s Ratings Group, a division of McGraw Hill, Inc., or any successor or assignee
of the business of such division in the business of rating securities. 
 
“Securitization Transaction” means any financing transaction or series of financing transactions pursuant to which a member of the Consolidated Group may sell, convey or otherwise transfer, or grant a
security interest in, accounts, payment receivables, rights to future lease payments or residuals or similar rights to payment (the “securitization receivables”) to a special purpose subsidiary or affiliate (a
“securitization subsidiary”) or any other Person. 
 
“Single Employer Plan” means any Plan which is covered by Title IV of ERISA, but which is not a Multiemployer Plan or a Multiple Employer Plan. 
 
“Spot Rate” means the rate quoted by Wachovia as the spot rate for the applicable currency
for the purchase by Wachovia of such currency with another currency through its principal foreign exchange trading office at approximately 11:00 a.m., Charlotte, North Carolina time, on the date two Business Days prior to the date as of which the
foreign exchange computation is made. 
 
“Subsidiary” means, as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock or other ownership interests having ordinary voting power to elect a majority of
the directors or other managers of such corporation, partnership, limited liability company or other entity (irrespective of whether or not at the time, any class or classes of such corporation shall have or might have voting power by reason of the
happening of any contingency) are at the time owned by such Person directly or indirectly through Subsidiaries. Unless otherwise identified, “Subsidiary” or “Subsidiaries” shall mean Subsidiaries of the Borrower. 
 
“Support Obligations” means, with respect to
any Person, without duplication, any obligations of such Person (other than endorsements in the ordinary course of business of 
 

13 

 
negotiable instruments for
deposit or collection) guaranteeing or intended to guarantee any indebtedness of any other Person in any manner, whether direct or indirect, and including without limitation any obligation, whether or not contingent, (i) to purchase any such
indebtedness or any Property constituting security therefor, (ii) to advance or provide funds or other support for the payment or purchase of any such indebtedness or to maintain working capital, solvency or other balance sheet condition of such
other Person (including without limitation keep well agreements, maintenance agreements, comfort letters or similar agreements or arrangements) for the benefit of any holder of indebtedness of such other Person, (iii) to lease or purchase Property,
securities or services primarily for the purpose of assuring the holder of such indebtedness, or (iv) to otherwise assure or hold harmless the holder of such indebtedness against loss in respect thereof. The amount of any Support Obligation
hereunder shall (subject to any limitations set forth therein) be deemed to be an amount equal to the outstanding principal amount (or maximum principal amount, if larger) of the indebtedness in respect of which such Support Obligation is made.

 
“Syndication Agent” shall have
the meaning assigned to such term in the heading hereof, together with any successors or assigns. 
 
“Synthetic Lease” means any synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance
sheet financing product where the transaction is considered borrowed money indebtedness for tax purposes, but is classified as a operating lease under GAAP. 
 
“TARGET” means the Trans-European Automated Real-time Gross settlement Express Transfer system. 
 
“TARGET Business Day” means a day when TARGET
is scheduled to be open for business. 
 
“Termination Date” means the date 364 days following the Effective Date. 
 
“Treaty on European Union” means the Treaty of Rome of March 25, 1957, as amended by the Single European Act 1986 and the
Maastricht Treaty (which was signed at Maastricht on February 1, 1992 and came into force on November 1, 1993), as amended from time to time. 
 
“Utilization” means, for any Utilization Period, the percentage obtained by dividing the Average Outstanding Loans by the
average of the daily Aggregate Commitments. 
 
“Utilization Period” means each calendar quarter, except that the initial Utilization Period shall commence on the Effective Date and end on September 30, 2002, and the final Utilization Period shall end on the
Termination Date. 
 
“Wachovia”
means Wachovia Bank, National Association and its successors. 
 

	1.2	 	Computation of Time Periods and Dollar Equivalents. 

 
For purposes of computation of periods of time hereunder, the word “from” means “from and including” and the words
“to” and “until” each mean “to but excluding.” 
 

14 

 
References
herein to minimum Dollar Amounts and integral multiples stated in Dollars, where they shall also be applicable to Foreign Currency, shall be deemed to refer to approximate Foreign Currency Equivalents. 
 

	 	1.3	 	Accounting Terms. 

 
Except as otherwise expressly provided herein, all accounting terms used herein shall be interpreted, and all financial statements and
certificates and reports as to financial matters required to be delivered to the Lenders hereunder shall be prepared, in accordance with GAAP applied on a consistent basis. All calculations made for the purposes of determining compliance with this
Credit Agreement shall (except as otherwise expressly provided herein) be made by application of GAAP applied on a basis consistent with the most recent annual or quarterly financial statements delivered pursuant to Section 6.1 hereof (or, prior to
the delivery of the first financial statements pursuant to Section 6.1 hereof, consistent with the annual audited financial statements referenced in Section 5.1(i) hereof); provided, however, if (a) the Borrower shall object to
determining such compliance on such basis at the time of delivery of such financial statements due to any change in GAAP or the rules promulgated with respect thereto or (b) the Administrative Agent or the Required Lenders shall so object in writing
within 30 days after delivery of such financial statements, then such calculations shall be made on a basis consistent with the most recent financial statements delivered by the Borrower to the Lenders as to which no such objection shall have been
made. 
 

	 	1.4	 	Exchange Rates; Currency Equivalents. 

 

	 	(a)	 	The Administrative Agent shall determine the Spot Rates as of each Revaluation Date to be used for calculating Dollar Equivalent amounts of Extensions of Credit and
amounts outstanding hereunder denominated in Available Foreign Currencies. Such Spot Rates shall become effective as of such Revaluation Date and shall be the Spot Rates employed in converting any amounts between the applicable currencies until the
next Revaluation Date to occur. Except for purposes of financial statements delivered by the Borrower hereunder or calculating financial covenants hereunder or except as otherwise provided herein, the applicable amount of any currency for purposes
of the Credit Documents shall be such Dollar Equivalent amount as so determined by the Administrative Agent. 

 

	 	(b)	 	Wherever in this Credit Agreement in connection with an Extension of Credit, conversion, continuation or prepayment of a Loan, an amount, such as a required minimum
or multiple amount, is expressed in Dollars, but such Extension of Credit or Loan is denominated in an Available Foreign Currency, such amount shall be the relevant Foreign Currency Equivalent of such Dollar amount (rounded to the nearest 1,000
units of such Available Foreign Currency), as determined by the Administrative Agent. 

 

	 	1.5	 	Redenomination of Certain Available Foreign Currencies. 

 

	 	(a)	 	Each obligation of the Borrower to make a payment denominated in the national currency unit of any member state of the European Union that adopts the Euro as its
lawful currency after the date hereof shall be redenominated into Euro at the 

 

15 

 
time of such
adoption (in accordance with the EMU Legislation). If, in relation to the currency of any such member state, the basis of accrual of interest expressed in this Agreement in respect of that currency shall be inconsistent with any convention or
practice in the London interbank market for the basis of accrual of interest in respect of the Euro, such expressed basis shall be replaced by such convention or practice with effect from the date on which such member state adopts the Euro as its
lawful currency; provided that if any Extension of Credit in the currency of such member state is outstanding immediately prior to such date, such replacement shall take effect, with respect to such Extension of Credit, at the end of the then
current Interest Period. 
 

	 	(b)	 	Each provision of this Agreement shall be subject to such reasonable changes of construction as the Administrative Agent may from time to time specify to be
appropriate to reflect the adoption of the Euro by any member state of the European Union and any relevant market conventions or practices relating to the Euro. 

 
ARTICLE II 
 
CREDIT FACILITIES 
 

	 	2.1	 	Revolving Loans. 

 

	 	(a)	 	Revolving Commitment. During the Commitment Period, subject to the terms and conditions hereof, each Lender severally agrees to make revolving credit loans in
Dollars and Available Foreign Currencies (the “Revolving Loans”) to the Borrower from time to time in the amount of such Lender’s Revolving Commitment Percentage of such Revolving Loans for the purposes hereinafter set forth;
provided that (i) with regard to the Lenders collectively, the aggregate principal Dollar Amount (determined as of the most recent Determination Date) of Obligations outstanding at any time shall not exceed the Aggregate Revolving Committed
Amount, (ii) with regard to each Lender individually, the aggregate principal Dollar Amount (determined as of the most recent Determination Date) of such Lender’s Revolving Commitment Percentage of Committed Obligations outstanding at any time
shall not exceed such Lender’s Revolving Committed Amount, and (iii) the aggregate principal Dollar Amount (determined as of the most recent Determination Date) of Obligations in Available Foreign Currencies shall not at any time exceed
EIGHTY-FIVE MILLION DOLLARS ($85,000,000) (the “Foreign Currencies Committed Amount”). Revolving Loans may consist of Base Rate Loans or LIBOR Loans, or a combination thereof, as the Borrower may request, and Revolving
Loans denominated in Available Foreign Currencies shall consist solely of LIBOR Loans, and may be repaid and reborrowed in accordance with the provisions hereof. 

 

	 	(b)	 	Revolving Loan Borrowings. 

 
(i) Notice of Borrowing. The Borrower shall request a Revolving Loan borrowing by written notice (or telephone
notice promptly confirmed in 
 

16 

 
writing) to
the Administrative Agent not later than 11:00 A.M. (Charlotte, North Carolina time) on the Business Day of the requested borrowing in the case of Base Rate Loans denominated in Dollars, on the third Business Day prior to the date of the requested
borrowing in the case of LIBOR Loans denominated in Dollars, and on the fourth Business Day prior to the date of the requested borrowing in the case of all Loans denominated in Available Foreign Currencies . Each such request for borrowing shall be
irrevocable and shall specify (A) that a Revolving Loan is requested, (B) the date of the requested borrowing (which shall be a Business Day), (C) the currency and aggregate principal amount to be borrowed, and (D) whether the borrowing shall be
comprised of Base Rate Loans, LIBOR Loans or a combination thereof, and if LIBOR Loans are requested, the Interest Period(s) therefor. If the Borrower shall fail to specify in any such Notice of Borrowing (I) an applicable Interest Period in the
case of a LIBOR Loan, then such notice shall be deemed to be a request for an Interest Period of one month, or (II) the type of Revolving Loan requested, then such notice shall be deemed to be a request for a Base Rate Loan hereunder, in the case of
Revolving Loans denominated in Dollars or a LIBOR Loan, in any other case. The Administrative Agent shall give notice to each Lender promptly upon receipt of each Notice of Borrowing pursuant to this Section 2.1(b)(i), the contents thereof and each
such Lender’s share of any borrowing to be made pursuant thereto. 
 
(ii) Minimum Amounts. Each Revolving Loan shall be in a minimum aggregate principal Dollar Amount of $5,000,000, in the case of LIBOR Loans, or $1,000,000 (or the remaining Revolving Committed
Amount, if less), in the case of Base Rate Loans, and integral multiples of $1,000,000 in excess thereof. 
 
(iii) Advances. Each Lender will make its Revolving Commitment Percentage of each Revolving Loan borrowing
available to the Administrative Agent for the account of the Borrower as specified in Section 3.17(b), or in such other manner as the Administrative Agent may specify in writing, by 12:00 noon (Charlotte, North Carolina time or local time where the
deposit is to be made in Available Foreign Currency) on the date specified in the applicable Notice of Borrowing in funds immediately available to the Administrative Agent. Such borrowing will then be made available to the Borrower by the
Administrative Agent by crediting the account designated by the Borrower with the aggregate of the amounts made available to the Administrative Agent by the Lenders and in like funds as received by the Administrative Agent. 
 

	 	(c)	 	Repayment. The principal amount of all Revolving Loans shall be due and payable in full on the earlier of the Termination Date or the date that the
Obligations are accelerated pursuant to Section 8.2. Additionally, Revolving Loan payments may be due in part in accordance with Section 3.3(b). 

 

	 	(d)	 	Interest. Subject to the provisions of Section 3.1: 

 
(i) Base Rate Loans. During such periods as Revolving Loans shall comprise in whole or in part Base Rate Loans,
such Base Rate Loans shall bear interest at a per annum rate equal to the Base Rate plus the Applicable Percentage; 
 

17 

 
(ii) LIBOR Loans. During such periods as Revolving Loans shall comprise in whole or in part LIBOR Loans, such LIBOR Loans shall bear interest at a per annum rate equal to the LIBOR Rate plus the Applicable Percentage.

 
Interest on Revolving Loans shall be payable in arrears on each
applicable Interest Payment Date (or at such other times as may be specified herein). 
 

	 	(e)	 	Revolving Notes. The Revolving Loans shall, at the option of each Lender, be evidenced by a duly executed Revolving Note in favor of each Lender in the form
of Schedule 2.1(e) attached hereto. 

 

	 	(f)	 	Maximum Number of LIBOR Loans. The Borrower will be limited to a maximum number of eight (8) LIBOR Loans outstanding at any time. For purposes hereof, LIBOR
Loans with separate or different Interest Periods will be considered as separate LIBOR Loans even if their Interest Periods expire on the same date. 

 

	 	(g)	 	Term Out Option. The Borrower may convert the outstanding Revolving Loans to a term loan effective on the Termination Date, which shall be due and payable in
full on the date that is 364 days subsequent to such Termination Date; provided that (i) the Borrower shall have delivered to the Administrative Agent a written notice electing such conversion at least thirty (30) days prior to the Termination Date
and (ii) no Event of Default exists and is continuing on the date the notice is provided or on the Termination Date. The Applicable Percentage on Loans outstanding during the period of the term loan as set forth herein shall be determined as if the
Utilization for such period exceeds fifty percent (50%). A Facility Fee will be payable during such period equal to the Applicable Percentage determined in accordance with the preceding sentence multiplied by the outstanding amount of the term loan.
No additional borrowings may be made during the period of the term loan and any amounts repaid on the Revolving Loans outstanding during such period may not be reborrowed. The Administrative Agent shall promptly forward any written notice received
from the Borrower pursuant to this subsection to the Lenders. 

 

	 	2.2	 	Competitive Loan Subfacility. 

 

	 	(a)	 	Competitive Loans. Subject to the terms and conditions hereof and in reliance upon the representations and warranties set forth herein, the Borrower may,
during the Commitment Period, request and each Lender may, in its sole discretion, agree to make, Competitive Loans in Dollars and Available Foreign Currencies to the Borrower; provided, however, that (i) the aggregate principal Dollar
Amount (determined as of the most recent Determination Date) of outstanding Competitive Loans shall not at any time exceed SIXTY-FIVE MILLION DOLLARS ($65,000,000) (the “Competitive Loan Maximum Amount”), and (ii) with regard
to the Lenders collectively, the aggregate principal Dollar Amount (determined as of the most recent Determination Date) of Obligations outstanding at any time shall not exceed the Aggregate Revolving Committed Amount. Each Competitive Loan shall be
in an aggregate principal 

 

18 

 
Dollar Amount
not less than $5,000,000 and integral multiples of $1,000,000 in excess thereof (or the remaining portion of the Competitive Loan Maximum Amount, if less). 
 

	 	(b)	 	Competitive Bid Requests. The Borrower may solicit Competitive Bids by delivery of a Competitive Bid Request substantially in the form of Schedule
2.2(b)-1 to the Administrative Agent by 12:00 Noon (Charlotte, North Carolina time) on a Business Day not less than three (3) nor more than four (4) Business Days prior to the date of a requested Competitive Loan borrowing. A Competitive Bid
Request shall specify (i) the date of the requested Competitive Loan borrowing (which shall be a Business Day), (ii) the currency and amount of the requested Competitive Loan borrowing and (iii) the applicable Interest Periods requested. The
Administrative Agent shall, promptly following its receipt of a Competitive Bid Request under this subsection (b), notify the affected Lenders of its receipt and the contents thereof and invite the Lenders to submit Competitive Bids in response
thereto. The form of such notice is provided in Schedule 2.2(b)-2. No more than three (3) Competitive Bid Requests (i.e., the Borrower may request Competitive Bids for no more than three (3) different Interest Periods at any one time) shall
be submitted at any one time and Competitive Bid Requests may be made no more frequently than once every five (5) Business Days. 

 

	 	(c)	 	Competitive Bid Procedure. Each Lender may, in its sole discretion, make one or more Competitive Bids to the Borrower in response to a Competitive Bid
Request. Each Competitive Bid must be received by the Administrative Agent not later than 10:00 A.M. (Charlotte, North Carolina time) on the Business Day next succeeding the date of receipt by the Administrative Agent of the related Competitive Bid
Request. A Lender may offer to make all or part of the requested Competitive Loan borrowing and may submit multiple Competitive Bids in response to a Competitive Bid Request. The Competitive Bid shall specify (i) the particular Competitive Bid
Request as to which the Competitive Bid is submitted, (ii) the currency and the minimum (which shall be not less than $1,000,000 and integral multiples of $500,000 in excess thereof) and maximum principal Dollar Amounts of the requested Competitive
Loan or Loans as to which the Lender is willing to make, and (iii) the applicable interest rate or rates and Interest Period or Periods therefor. The form of such Competitive Bid is provided in Schedule 2.2(c). A Competitive Bid submitted by
a Lender in accordance with the provisions hereof shall be irrevocable. The Administrative Agent shall promptly notify, but in no event later than 10:30 A.M. (Charlotte, North Carolina time), the Borrower of all Competitive Bids made and the terms
thereof. The Administrative Agent shall send a copy of each of the Competitive Bids to the Borrower for its records as soon as practicable (and in any event within two (2) Business Days following receipt of the bids). 

 

	 	(d)	 	Submission of Competitive Bids by Agent. If the Administrative Agent, in its capacity as a Lender, elects to submit a Competitive Bid in response to any
Competitive Bid Request, it shall submit such Competitive Bid directly to the Borrower one-half of an hour earlier than the latest time at which the other Lenders are required to submit their Competitive Bids to the Administrative

 

19 

 
Agent in
response to such Competitive Bid Request pursuant to subsection (c) above. 
 

	 	(e)	 	Acceptance of Competitive Bids. The Borrower may, in its sole and absolute discretion, subject only to the provisions of this subsection (e), accept or refuse
any Competitive Bid offered to it. To accept a Competitive Bid, the Borrower shall give telephone notification, which shall be binding, by 11:30 A.M. (Charlotte, North Carolina time) and confirmed with written notification substantially in the form
of Schedule 2.2(e) of its acceptance of any or all such Competitive Bids to the Administrative Agent by 1:30 P.M. (Charlotte, North Carolina time) on the latest date on which notice of election to make a Competitive Bid is to be given to the
Administrative Agent by the Lenders; provided, however, (i) the failure by the Borrower to give timely notice of its acceptance of a Competitive Bid shall be deemed to be a refusal thereof, (ii) the Borrower may accept Competitive Bids
within any one Interest Period only in ascending order of rates, (iii) the aggregate amount of Competitive Bids accepted by the Borrower shall not exceed the principal amount specified in the Competitive Bid Request, (iv) the Borrower may accept a
portion of a Competitive Bid in the event, and to the extent, acceptance of the entire amount thereof would cause the Borrower to exceed the principal amount specified in the Competitive Bid Request, subject however to the minimum amounts provided
herein (and provided that where two or more Lenders submit such a Competitive Bid at the same Competitive Bid Rate and for the same Interest Period, then pro rata between or among such Lenders) and (v) no bid shall be accepted for a Competitive Loan
unless such Competitive Loan is in a minimum principal Dollar Amount of $1,000,000 and integral multiples of $500,000 in excess thereof, except that where a portion of a Competitive Bid is accepted in accordance with the provisions of subsection
(iv) hereof, then in a minimum principal Dollar Amount of $500,000 and integral multiples of $100,000 in excess thereof (but not in any event less than the minimum amount specified in the Competitive Bid), and in calculating the pro rata allocation
of acceptances of portions of multiple bids at a particular Competitive Bid Rate pursuant to subsection (iv) hereof, the amounts shall be rounded to integral multiples of $100,000 in a manner which shall be in the discretion of the Borrower. A
notice of acceptance of a Competitive Bid given by the Borrower in accordance with the provisions hereof shall be irrevocable. The Administrative Agent shall, not later than 12:00 Noon (Charlotte, North Carolina time) on the date of receipt by the
Administrative Agent of a notification from the Borrower of its acceptance and/or refusal of Competitive Bids, notify each affected Lender of its receipt and the contents thereof. Upon its receipt from the Administrative Agent of notification of the
Borrower’s acceptance of its Competitive Bid in accordance with the terms of this subsection (e), each successful bidding Lender will thereupon become bound, subject to the other applicable conditions hereof, to make the Competitive Loan in
respect of which its bid has been accepted. 

 

	 	(f)	 	Funding of Competitive Loans. Each Lender which is to make a Competitive Loan shall make its Competitive Loan borrowing available to the Administrative Agent
for the account of the Borrower at the office of the Administrative Agent 

 

20 

 
specified in
Schedule 10.1, or at such other office as the Administrative Agent may designate in writing, by 1:30 P.M. (Charlotte, North Carolina time) on the date specified in the Competitive Bid Request in funds immediately available to the
Administrative Agent. Such borrowing will then be made available to the Borrower by crediting the account designated by the Borrower. 
 

	 	(g)	 	Maturity of Competitive Loans. Each Competitive Loan shall mature and be due and payable in full on the last day of the Interest Period applicable thereto,
unless accelerated sooner pursuant to Section 8.2. Unless the Borrower shall give notice to the Administrative Agent otherwise, the Borrower shall be deemed to have requested a Revolving Loan borrowing in the principal amount and currency of the
maturing Competitive Loan, the proceeds of which will be used to repay such Competitive Loan. 

 

	 	(h)	 	Interest on Competitive Loans. Subject to the provisions of Section 3.1, Competitive Loans shall bear interest in each case at the Competitive Bid Rate
applicable thereto. Interest on Competitive Loans shall be payable in arrears on each Interest Payment Date. 

 

	 	(i)	 	Competitive Loan Notes. The Competitive Loans made by each Lender shall be evidenced by a Revolving Note. 

 

	 	2.3	 	Letter of Credit Subfacility. 

 

	 	(a)	 	Issuance. Subject to the terms and conditions hereof and of the LOC Documents, if any, and any other terms and conditions which the Issuing Lender may
reasonably require, during the Commitment Period the Issuing Lender shall issue, and the Lenders shall participate in, Letters of Credit in Dollars and in Available Foreign Currencies for the account of the Borrower from time to time upon request in
a form acceptable to the Issuing Lender; provided, however, that (i) the aggregate amount of LOC Obligations shall not at any time exceed EIGHTY-FIVE MILLION DOLLARS ($85,000,000) (the “LOC Committed Amount”),
(ii) with regard to the Lenders collectively, the aggregate principal Dollar Amount (determined as of the most recent Determination Date) of Obligations outstanding at any time shall not exceed the Aggregate Revolving Committed Amount, (iii) with
regard to each Lender individually, the aggregate principal Dollar Amount (determined as of the most recent Determination Date) of such Lender’s Revolving Commitment Percentage of Committed Obligations outstanding at any time shall not exceed
such Lender’s Revolving Committed Amount; and (iv) Letters of Credit shall be issued for lawful corporate purposes and may be issued as standby letters of credit, including in connection with workers’ compensation and other insurance
programs, and trade letters of credit. Except as otherwise expressly agreed upon by all the Lenders, no Letter of Credit shall have an original expiry date more than twelve (12) months from the date of issuance; provided, however, so
long as no Default or Event of Default has occurred and is continuing and subject to the other terms and conditions to the issuance of Letters of Credit hereunder, the expiry dates of Letters of Credit may be extended annually or periodically from
time to time on the request of the Borrower or by 

 

21 

 
operation of
the terms of the applicable Letter of Credit to a date not more than twelve (12) months from the date of extension; provided, further, that no Letter of Credit, as originally issued or as extended, shall have an expiry date extending
beyond the date which is six (6) Business Days prior to the Termination Date. Each Letter of Credit shall comply with the related LOC Documents. The issuance and expiry date of each Letter of Credit shall be a Business Day. Any Letters of Credit
issued hereunder shall be in a minimum original face amount of $100,000 or such lesser amount as the Issuing Lender may agree. Additionally, the Borrower and Bank of America, N.A. (as an Issuing Bank for these purposes) shall have the option to move
letters of credit in existence on the Closing Date, without further consent from the Lenders, under this Credit Agreement and they shall become Letters of Credit for all purposes hereunder. 
 

	 	(b)	 	Notice and Reports. The request for the issuance of a Letter of Credit shall be submitted to the Issuing Lender at least five (5) Business Days prior to the
requested date of issuance. The Issuing Lender will promptly upon request provide to the Administrative Agent for dissemination to the Lenders a detailed report specifying the Letters of Credit which are then issued and outstanding and any activity
with respect thereto which may have occurred since the date of any prior report, and including therein, among other things, the account party, the beneficiary, the face amount, expiry date as well as any payments or expirations which may have
occurred. The Issuing Lender will further provide to the Administrative Agent promptly upon request copies of the Letters of Credit. The Issuing Lender will provide to the Administrative Agent promptly upon request a summary report of the nature and
extent of LOC Obligations then outstanding. 

 

	 	(c)	 	Participations. Each Lender upon issuance of a Letter of Credit shall be deemed to have purchased without recourse a risk participation from the Issuing
Lender in such Letter of Credit and the obligations arising thereunder and any collateral relating thereto, in each case in an amount equal to its Revolving Commitment Percentage of the obligations under such Letter of Credit and shall absolutely,
unconditionally and irrevocably assume, as primary obligor and not as surety, and be obligated to pay to the Issuing Lender therefor and discharge when due, its Revolving Commitment Percentage of the obligations arising under such Letter of Credit.
Without limiting the scope and nature of each Lender’s participation in any Letter of Credit, to the extent that the Issuing Lender has not been reimbursed as required hereunder or under any LOC Document, each such Lender shall pay to the
Issuing Lender its Revolving Commitment Percentage of such unreimbursed drawing in same day funds on the day of notification by the Issuing Lender of an unreimbursed drawing pursuant to the provisions of subsection (d) hereof. The obligation of each
Lender to so reimburse the Issuing Lender shall be absolute and unconditional and shall not be affected by the occurrence of a Default, an Event of Default or any other occurrence or event. Any such reimbursement shall not relieve or otherwise
impair the obligation of the Borrower to reimburse the Issuing Lender under any Letter of Credit, together with interest as hereinafter provided. 

 

22 

 

	 	(d)	 	Reimbursement. In the event of any drawing under any Letter of Credit, the Issuing Lender will promptly notify the Borrower and the Administrative Agent. The
Borrower shall reimburse the Issuing Lender on the day of drawing under any Letter of Credit (with the proceeds of a Revolving Loan obtained hereunder or otherwise) if it receives such notice from the Issuing Lender at or before 2:00 P.M.
(Charlotte, North Carolina time) in same day funds as provided herein or in the LOC Documents. If the Borrower shall fail to reimburse the Issuing Lender as provided herein, the unreimbursed amount of such drawing shall bear interest at a per annum
rate equal to the Base Rate plus the Applicable Percentage plus two percent (2%). Unless the Borrower shall immediately notify the Issuing Lender and the Administrative Agent of its intent to otherwise reimburse the Issuing Lender, the Borrower
shall be deemed to have requested a Revolving Loan in the amount of the drawing as provided in subsection (e) hereof, the proceeds of which will be used to satisfy the reimbursement obligations. The Borrower’s reimbursement obligations
hereunder shall be absolute and unconditional under all circumstances irrespective of any rights of set-off, counterclaim or defense to payment the Borrower may claim or have against the Issuing Lender, the Administrative Agent, the Lenders, the
beneficiary of the Letter of Credit drawn upon or any other Person, including without limitation any defense based on any failure of the Borrower to receive consideration or the legality, validity, regularity or unenforceability of the Letter of
Credit. The Issuing Lender will promptly notify the Lenders of the amount of any unreimbursed drawing and each Lender shall promptly pay to the Administrative Agent for the account of the Issuing Lender in Dollars and in immediately available funds,
the amount of such Lender’s Revolving Commitment Percentage of such unreimbursed drawing. Such payment shall be made on the day such notice is received by such Lender from the Issuing Lender if such notice is received at or before 2:00 P.M.
(Charlotte, North Carolina time), otherwise such payment shall be made at or before 12:00 Noon (Charlotte, North Carolina time) on the Business Day next succeeding the day such notice is received. If such Lender does not pay such amount to the
Issuing Lender in full upon such request, such Lender shall, on demand, pay to the Administrative Agent for the account of the Issuing Lender interest on the unpaid amount during the period from the date of such drawing until such Lender pays such
amount to the Issuing Lender in full at a rate per annum equal to, if paid within two (2) Business Days of the date of drawing, the Federal Funds Rate and thereafter at a rate equal to the Base Rate. Each Lender’s obligation to make such
payment to the Issuing Lender, and the right of the Issuing Lender to receive the same, shall be absolute and unconditional, shall not be affected by any circumstance whatsoever and without regard to the termination of this Credit Agreement or the
Commitments hereunder, the existence of a Default or Event of Default or the acceleration of the Loans and LOC Obligations hereunder and shall be made without any offset, abatement, withholding or reduction whatsoever. 

 

	 	(e)	 	Repayment with Revolving Loans. On any day on which the Borrower shall have requested, or been deemed to have requested, a Revolving Loan to reimburse a
drawing under a Letter of Credit, the Administrative Agent shall give notice to the Lenders that a Revolving Loan has been requested or deemed requested in 

 

23 

 
connection
with a drawing under a Letter of Credit, in which case a Revolving Loan borrowing comprised entirely of Base Rate Loans (each such borrowing, a “Mandatory Borrowing”) shall be immediately made (without giving effect to any
termination of the Commitments pursuant to Section 8.2) pro rata based on each Lender’s respective Revolving Commitment Percentage (determined before giving effect to any termination of the Commitments pursuant to Section 8.2) and
the proceeds thereof shall be paid directly to the Issuing Lender for application to the respective LOC Obligations. Each Lender hereby irrevocably agrees to make such Revolving Loans immediately upon any such request or deemed request on account of
each Mandatory Borrowing in the amount and in the manner specified in the preceding sentence and on the same such date notwithstanding (i) the amount of Mandatory Borrowing may not comply with the minimum amount for borrowings of Revolving
Loans otherwise required hereunder, (ii) whether any conditions specified in Section 4.2 are then satisfied, (iii) whether a Default or an Event of Default then exists, (iv) failure for any such request or deemed request for Revolving Loan to be
made by the time otherwise required in Section 2.1(b), (v) the date of such Mandatory Borrowing, or (vi) any reduction in the Aggregate Revolving Committed Amount after any such Letter of Credit may have been drawn upon. In the event that any
Mandatory Borrowing cannot for any reason be made on the date otherwise required above (including, without limitation, as a result of the commencement of a proceeding under the United States Bankruptcy Code), then each such Lender hereby agrees that
it shall forthwith fund (as of the date the Mandatory Borrowing would otherwise have occurred, but adjusted for any payments received from the Borrower on or after such date and prior to such purchase) its Participation Interests in the LOC
Obligations; provided, further, that in the event any Lender shall fail to fund its Participation Interest on the day the Mandatory Borrowing would otherwise have occurred, then the amount of such Lender’s unfunded Participation
Interest therein shall bear interest payable by such Lender to the Issuing Lender upon demand, at the rate equal to, if paid within two (2) Business Days of such date, the Federal Funds Rate, and thereafter at a rate equal to the Base Rate.

 

	 	(f)	 	Designation of Subsidiaries as Account Parties. Notwithstanding anything to the contrary set forth in this Agreement, including without limitation Section
2.3(a), a Letter of Credit issued hereunder may contain a statement to the effect that such Letter of Credit is issued for the account of a Subsidiary of the Borrower, provided that notwithstanding such statement, the Borrower shall be the actual
account party for all purposes of this Agreement for such Letter of Credit and such statement shall not affect the Borrower’s reimbursement obligations hereunder with respect to such Letter of Credit. 

 

	 	(g)	 	Modification, Extension. The issuance of any supplement, modification, amendment, renewal, or extension to any Letter of Credit shall, for purposes hereof, be
treated in all respects the same as the issuance of a new Letter of Credit hereunder. 

 

	 	(h)	 	Uniform Customs and Practices. The Issuing Lender shall have the Letters of Credit be subject to The Uniform Customs and Practice for Documentary Credits,

 

24 

 
as published
as of the date of issue by the International Chamber of Commerce (the “UCP”), in which case the UCP may be incorporated therein and deemed in all respects to be a part thereof. 
 

	 	(i)	 	Conflict with LOC Documents. In the event of any conflict between this Credit Agreement and any LOC Document (including any letter of credit application),
this Credit Agreement shall control. 

 
ARTICLE III 
 
OTHER
PROVISIONS RELATING TO CREDIT FACILITIES 
 

	 	3.1	 	Default Rate. 

 
Upon the occurrence, and during the continuance, of an Event of Default, any principal of and, to the extent permitted by law, interest on
the Loans and any other amounts then due and owing hereunder or under the other Credit Documents shall, at the discretion of the Required Lenders or the Administrative Agent, bear interest, payable on demand, at a per annum rate 2% greater than the
Base Rate plus the Applicable Percentage which would otherwise be applicable thereto (or if no rate is applicable, whether in respect of interest, fees or other amounts, then 2% greater than the Base Rate). 
 

	 	3.2	 	Extension and Conversion. 

 
The Borrower shall have the option, on any Business Day, to extend existing Loans into a subsequent permissible Interest Period or to
convert Loans into Loans of another interest rate type; provided, however, that (i) except as provided in Section 3.8, 3.9 and 3.11, LIBOR Loans may be converted into Base Rate Loans only on the last day of the Interest Period
applicable thereto, (ii) any LIBOR loan may be extended, and any Base Rate Loan may be converted to a LIBOR Loan only if the conditions in Section 4.2 have been satisfied, (iii) Loans extended as, or converted into, LIBOR Loans shall be subject to
the terms of the definition of “Interest Period” set forth in Section 1.1 and shall be in such minimum amounts as provided in Section 2.1(b)(ii), and (iv) any request for extension or conversion of a LIBOR Loan which shall fail to
specify an Interest Period shall be deemed to be a request for an Interest Period of one month. Each such extension or conversion shall be effected by the Borrower by giving a Notice of Extension/Conversion (or telephone notice promptly confirmed in
writing) to the Administrative Agent prior to 11:00 A.M. (Charlotte, North Carolina time) on the Business Day of, in the case of the conversion of a LIBOR Loan into a Base Rate Loan, and on the third Business Day prior to, in the case of the
extension of a LIBOR Loan as, or conversion of a Base Rate Loan into, a LIBOR Loan, the date of the proposed extension or conversion, specifying (A) the date of the proposed extension or conversion, (B) the Loans to be so extended or converted, (C)
the types of Loans into which such Loans are to be converted and, if appropriate, (D) the applicable Interest Periods with respect thereto. Each request for extension or conversion shall be irrevocable and shall constitute a representation and
warranty by the Borrower of the matters specified in subsections (a) through (e) of Section 4.2. In the event the Borrower fails to request extension or conversion of any LIBOR Loan in accordance with this Section, or any such conversion or
extension is not permitted or required by this Section, then (i) in the case of a LIBOR Loan denominated in Dollars, such LIBOR Loan shall be continued as a LIBOR Loan denominated in 
 

25 

 
Dollars at the end of the
Interest Period applicable thereto for an Interest Period of one month, and (ii) in the case of LIBOR Loans in an Available Foreign Currency, such LIBOR Loan shall be automatically continued as a LIBOR Loan in the same Available Foreign Currency,
for an Interest Period of one month. The Administrative Agent shall give each Lender notice as promptly as practicable of any such proposed extension or conversion affecting any Loan. 
 

	 	3.3	 	Prepayments. 

 

	 	(a)	 	Voluntary Prepayments. Loans may be repaid in whole or in part without premium or penalty; provided that (i) LIBOR Loans and Competitive Loans may be
prepaid only upon three (3) Business Days’ prior written notice to the Administrative Agent, and Base Rate Loans may be prepaid only upon at least one (1) Business Day’s prior written notice to the Administrative Agent, (ii) prepayments of
LIBOR Loans must be accompanied by payment of any amounts owing under Section 3.14, and (iii) partial prepayments shall be in minimum principal Dollar Amounts of $5,000,000, and in integral multiples of $1,000,000 in excess thereof.

 

	 	(b)	 	Mandatory Prepayments. If at any time, (A) the aggregate principal Dollar Amount (determined as of the most recent Determination Date) of Obligations shall
exceed the Aggregate Revolving Committed Amount, (B) the aggregate principal Dollar Amount (determined as of the most recent Determination Date) of Obligations in Available Foreign Currencies shall exceed the Foreign Currencies Committed Amount, (C)
the aggregate principal Dollar Amount (determined as of the most recent Determination Date) of Competitive Loans shall exceed the Competitive Loan Maximum Amount or (D) the aggregate principal Dollar Amount of LOC Obligations shall exceed the LOC
Committed Amount, the Borrower shall immediately make payment on the Loans and/or LOC Obligations in an amount sufficient to eliminate such excess amount. 

 

	 	(c)	 	Application of Mandatory Repayments. Mandatory prepayments made pursuant to Section 3.3(b) shall be applied first to Revolving Loans which are Base Rate
Loans, and then to Revolving Loans which are LIBOR Loans in direct order of Interest Period maturities, and then (after all Revolving Loans have been repaid) to a cash collateral account in respect of LOC Obligations, and then (after all Revolving
Loans have been repaid and all LOC Obligations have been cash collateralized) to Competitive Loans in direct order of Interest Period maturities. All mandatory prepayments made pursuant to Section 3.3(b) shall be subject to Section 3.14 and be
accompanied by interest on the principal amount prepaid through the date of prepayment. Amounts prepaid hereunder may be reborrowed in accordance with the provisions hereof. 

 

	 	3.4	 	Termination and Reduction of Commitments. 

 

	 	(a)	 	Voluntary Reductions. The Revolving Commitments may be terminated or permanently reduced by the Borrower in whole or in part upon three (3) Business
Days’ prior written notice to the Administrative Agent, provided that (i) after giving effect to any voluntary reduction, the aggregate principal Dollar Amount 

 

26 

 
(determined as
of the most recent Determination Date) of Obligations outstanding shall not exceed the Aggregate Revolving Committed Amount, as reduced, and (ii) partial reductions shall be in minimum principal Dollar Amounts of $5,000,000, and in integral
multiples of $1,000,000 in excess thereof. 
 

	 	(b)	 	Mandatory Reduction. The Commitments hereunder shall terminate on the Termination Date. 

 

	 	3.5	 	Fees. 

 

	 	(a)	 	Facility Fee. In consideration of the Commitments hereunder, the Borrower agrees to pay to the Administrative Agent for the ratable benefit of the Lenders a
facility fee (the “Facility Fee”) equal to the Applicable Percentage per annum multiplied by the average daily Aggregate Revolving Committed Amount in effect from time to time. The Facility Fee shall be payable quarterly in arrears
on the 15th day following the last day of each calendar quarter for the immediately preceding quarter (or portion thereof) beginning with the first such date to occur after the Effective Date and ending on the later of (A) the Termination Date or
(B) if applicable, the extended repayment date set forth in Section 2.1(g). 

 

	 	(b)	 	Competitive Bid Request Fee. The Borrower agrees to pay to the Administrative Agent such fees (the “Competitive Bid Request Fee”) in
connection with Competitive Bid Requests hereunder as may be agreed upon between the Borrower and the Administrative Agent in the Competitive Bid Request Fee Letter or elsewhere. Unless otherwise agreed, the Competitive Bid Request Fee shall be paid
quarterly in arrears. 

 

	 	(c)	 	Letter of Credit Fees. In consideration of the LOC Commitments, the Borrower agrees to pay to the Issuing Lender a fee (the “Letter of Credit
Fee”) equal to the Applicable Percentage per annum on the average daily maximum amount available to be drawn under each Letter of Credit from the date of issuance to the date of expiration. In addition to such Letter of Credit Fee, the
Issuing Lender may charge, and retain for its own account without sharing by the other Lenders, an additional fronting fee of one-eighth of one percent (0.125%) per annum on the average daily maximum amount available to be drawn under each such
Letter of Credit issued by it. The Issuing Lender shall promptly pay over to the Administrative Agent for the ratable benefit of the Lenders (including the Issuing Lender) the Letter of Credit Fee. The Letter of Credit Fee shall be payable quarterly
in arrears on the 15th day following the last day of each calendar quarter for the prior calendar quarter. 

 

	 	(d)	 	Issuing Lender Fees. In addition to the Letter of Credit Fees payable pursuant to subsection (b) hereof, the Borrower shall pay to the Issuing Lender for its
own account without sharing by the other Lenders the reasonable and customary charges from time to time of the Issuing Lender with respect to the amendment, transfer, administration, cancellation and conversion of, and drawings under, such Letters
of Credit (collectively, the “Issuing Lender Fees”). 

 

27 

 

	 	(e)	 	Administrative Agent’s Fees. The Borrower agrees to pay to the Administrative Agent, for its own account, an annual administrative fee and such other
fees, if any, referred to in the Administrative Agent’s Fee Letter (collectively, the “Administrative Agent’s Fees”). 

 

	 	3.6	 	LIBOR Reserve Compensation. 

 
For so long as any Lender maintains reserves against “eurocurrency liabilities” (or any other category of liabilities which
includes deposits by reference to which the interest rate on any LIBOR Loans is determined), and, as a result, the cost to such Lender of making or maintaining any of its LIBOR Loans is increased, then such Lender may require the Borrower to pay,
contemporaneously with each payment of interest on such LIBOR Loans of such Lender, additional interest at a rate per annum up to but not exceeding the excess of (i) (A) the applicable LIBOR Rate divided by (B) one minus the LIBOR Reserve
Percentage over (ii) the applicable LIBOR Rate. Any Lender wishing to require payment of such additional interest (x) shall so notify the Borrower and the Administrative Agent, in which case such additional interest on the LIBOR Loans of such
Lender shall be payable to such Lender at the place indicated in such notice with respect to each Interest Period commencing at least three (3) Business Days after the giving of such notice and (y) shall furnish to the Borrower at least five (5)
Business Days prior to each date on which interest is payable on the LIBOR Loans a certificate setting forth the amount to which such Lender is then entitled under this Section 3.6 (which shall be consistent with such Lender’s good faith
estimate of the level at which the related reserves are maintained by it). Each such certificate shall be accompanied by such information as the Borrower may reasonably request as to the computation set forth therein. 
 

	 	3.7	 	Capital Adequacy. 

 
If any Lender has determined, after the date hereof, that the adoption or the becoming effective of, or any change in, or any change by
any Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof in the interpretation or administration of, any applicable law, rule or regulation regarding capital adequacy, or compliance by
such Lender with any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank or comparable agency, has or would have the effect of reducing the rate of return on such Lender’s
capital or assets as a consequence of its commitments or obligations hereunder to a level below that which such Lender could have achieved but for such adoption, effectiveness, change or compliance (taking into consideration such Lender’s
policies with respect to capital adequacy), then, upon notice from such Lender to the Borrower, the Borrower shall be obligated to pay to such Lender such additional amount or amounts as will compensate such Lender for such reduction. Each
determination by any such Lender of amounts owing under this Section shall, absent manifest error, be conclusive and binding on the parties hereto. The Lender will, upon request, provide a certificate in reasonable detail as to the amount of such
increased cost or reduction in amount received and method of calculation. 
 

	 	3.8	 	Unavailability. 

 
In the event, and on each occasion, that on the day two (2) Business Days prior to the commencement of any Interest Period for a LIBOR
Loan of any amount, Interest Period or 
 

28 

 
currency, the Administrative
Agent shall have determined or shall have been notified by the Required Lenders (a) that deposits in the relevant amount in the relevant currency and for the relevant Interest Period are not available in the relevant market to any Lender, or that
reasonable means do not exist for ascertaining the LIBOR Rate for any such Loan, or (b) that the rates at which such deposits are being offered will not adequately and fairly reflect the cost to any Lender of making or maintaining its LIBOR Loan
during such Interest Period, the Administrative Agent shall promptly give written or telecopy notice of such determination to the Borrower and the Lenders. In the event of any such determination, until the Administrative Agent shall have advised the
Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, any request by the Borrower for a LIBOR Loan of the affected amount, Interest Period or currency, or a conversion to or continuation of a LIBOR Loan of the
affected amount, Interest Period or currency shall be deemed rescinded. If the Administrative Agent at any time determines that: (i) the euro has ceased to be utilized as the basic accounting unit of the European Community; (ii) for reasons
affecting the market in euros generally, euros are not freely traded between banks internationally; or (iii) it is illegal, impossible or impracticable for payments to be made hereunder in euro, then the Administrative Agent may, in its discretion
declare (such declaration to be binding on all the parties hereto) that any payment made or to be made thereafter which, but for this provision, would have been payable in the euro shall be made in a component currency of the euro or Dollars (as
selected by the Administrative Agent (the “Selected Currency”) and the amount to be so paid shall be calculated on the basis of the equivalent of the euro in the Selected Currency). Each determination by the Administrative Agent hereunder
shall be conclusive absent manifest error. 
 

	 	3.9	 	Illegality. 

 

	 	(a)	 	Notwithstanding any other provision herein, if (i) the adoption of or any change in any Requirement of Law or in the interpretation or application thereof occurring
after the Effective Date shall make it unlawful for any Lender to make or maintain LIBOR Loans as contemplated by this Credit Agreement, or (ii) there shall have occurred any change in national or international financial, political or economic
conditions (including the imposition of or any change in exchange controls) or currency exchange rates which would make it unlawful or impossible for any Lender to make Loans denominated in any Available Foreign Currency to the Borrower, as
contemplated by this Credit Agreement, then such Lender, together with Lenders giving notice under Section 3.8 and 3.10, shall be an “Affected Lender” and by written notice to the Borrower and to the Administrative Agent:

 
(i) such Lender
may declare that LIBOR Loans (in the affected currency or currencies) will not thereafter (for the duration of such unlawfulness or impossibility) be made by such Lender hereunder, whereupon any request for a LIBOR Loan (in the affected currency or
currencies) shall, as to such Lender only (A) if such Loan is not a Foreign Currency Loan, be deemed a request for a Base Rate Loan (unless it should also be illegal for the Affected Lender to provide a Base Rate Loan, in which case such Loan shall
bear interest at a commensurate rate to be agreed upon by the Administrative Agent and the Affected Lender, and so long as no Event of Default shall have occurred and be continuing, the Borrower), unless such declaration shall be subsequently
withdrawn and (B) if such Loan is a Foreign Currency Loan, be deemed to have been withdrawn, unless such declaration shall be subsequently withdrawn; and 
 

29 

 
(ii) such Lender may require that all outstanding LIBOR Loans or Foreign Currency Loans (in the affected currency or currencies), as the case may be, made by it be (A) if such Loans are not Foreign Currency Loans, converted to Base
Rate Loans, in which event all such LIBOR Loans shall be automatically converted to Base Rate Loans as of the effective date of such notice as provided in paragraph (b) below or (B) if such Loans are Foreign Currency Loans, repaid immediately, in
which event all such Foreign Currency Loans (in the affected currency or currencies) shall be required to be repaid in full by the Borrower as of the effective date of such notice as provided in paragraph (b) below. 
 
In the event any Lender shall exercise its rights under (i) or (ii) above with
respect to any Loans with are not Foreign Currency Loans, all payments and prepayments of principal which would otherwise have been applied to repay the LIBOR Loans that would have been made by such Lender or the converted LIBOR Loans of such Lender
shall instead be applied to repay the Base Rate Loans made by such Lender in lieu of, or resulting from the conversion, of such LIBOR Loans. 
 

	 	(b)	 	For purposes of this Section 3.9, a notice to the Borrower by any Lender shall be effective as to each such Loan, if lawful, on the last day of the Interest Period
currently applicable to such Loan; in all other cases such notice shall be effective on the date of receipt by the Borrower. 

 

	 	3.10	 	Requirements of Law. 

 
If, after the date hereof, the adoption of or any change in any Requirement of Law or in the interpretation or application thereof
applicable to any Lender, or compliance by any Lender with any request or directive (whether or not having the force of law) from any central bank or other Governmental Authority, in each case made subsequent to the Effective Date (or, if later, the
date on which such Lender becomes a Lender): 
 

	 	(a)	 	shall subject such Lender to any tax of any kind whatsoever with respect to any LIBOR Loans made by it or its obligation to make LIBOR Loans, or change the basis of
taxation of payments to such Lender in respect thereof (except for (i) Non-Excluded Taxes covered by Section 3.13 (including Non-Excluded Taxes imposed solely by reason of any failure of such Lender to comply with its obligations under Section
3.13(b)) and (ii) changes in taxes measured by or imposed upon the overall net income, or franchise tax (imposed in lieu of such net income tax), of such Lender or its applicable lending office, branch, or any affiliate thereof));

 

	 	(b)	 	shall impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement against assets held by, deposits or other liabilities in
or for the account of, advances, loans or other extensions of credit by, or any other acquisition of funds by, any office of such Lender which is not otherwise included in the determination of the LIBOR Rate hereunder; or 

 

	 	(c)	 	shall impose on such Lender any other condition (excluding any tax of any kind whatsoever); 

 

30 

 
and the result of any of the
foregoing is to increase the cost to such Lender, by an amount which such Lender deems to be material, of making, converting into, continuing or maintaining LIBOR Loans or to reduce any amount receivable hereunder in respect thereof, then, in any
such case, upon notice to the Borrower from such Lender, through the Administrative Agent, in accordance herewith, the Borrower shall be obligated to promptly pay such Lender, upon its demand, any additional amounts necessary to compensate such
Lender for such increased cost or reduced amount receivable, provided that, in any such case, the Borrower may elect to convert the LIBOR Loans made by such Lender hereunder to Base Rate Loans by giving the Administrative Agent at least one
Business Day’s notice of such election, in which case the Borrower shall promptly pay to such Lender, upon demand, without duplication, such amounts, if any, as may be required pursuant to Section 3.13. If any Lender becomes entitled to claim
any additional amounts pursuant to this subsection, it shall provide prompt notice thereof to the Borrower, through the Administrative Agent, certifying (x) that one of the events described in this paragraph (a) has occurred and describing in
reasonable detail the nature of such event, (y) as to the increased cost or reduced amount resulting from such event and (z) as to the additional amount demanded by such Lender and a reasonably detailed explanation of the calculation thereof. Such a
certificate as to any additional amounts payable pursuant to this subsection submitted by such Lender, through the Administrative Agent, to the Borrower shall be conclusive and binding on the parties hereto in the absence of manifest error. This
covenant shall survive the termination of this Credit Agreement and the payment of the Loans and all other amounts payable hereunder. 
 

	 	3.11	 	Inability To Determine Interest Rate. 

 
If prior to the first day of any Interest Period, the Administrative Agent shall have reasonably determined that, by reason of
circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining the LIBOR Rate for such Interest Period, the Administrative Agent shall give telecopy or telephonic notice thereof to the Borrower and the
Lenders as soon as practicable thereafter. If such notice is given (a) any Foreign Currency Loans requested to be made on the first day of such Interest Period shall be made, at the sole option of the Borrower, in Dollars as Base Rate Loans or such
request shall be cancelled, (b) any affected LIBOR Loans requested to be made on the first day of such Interest Period shall be made, at the sole option of the Borrower, in Dollars as Base Rate Loans and (c) any affected Loans that were to have been
converted on the first day of such Interest Period to or continued as LIBOR Loans shall be converted to or continued, at the sole option of the Borrower, in Dollars as Base Rate Loans. Until such notice has been withdrawn by the Administrative
Agent, no further LIBOR Loans in the affected currency shall be made or continued as such, nor shall the Borrower have the right to convert Base Rate Loans to such affected LIBOR Loans. 
 

	 	3.12	 	Replacement of Lenders. 

 
If any Lender requests compensation pursuant to Section 3.6, 3.7, 3.10 or 3.13, or any Lender’s obligation to make or continue, or to
convert Loans of any type into the other type of Loan shall be suspended pursuant to Section 3.8, 3.9 or 3.11 (any such Lender requesting such compensation, or whose obligations are so suspended, being herein called a “Requesting
Lender”), the Borrower, upon three Business Days’ notice, may require that such Requesting Lender transfer all of its right, title and interest under this Credit Agreement and such Requesting Lender’s Revolving Note to any bank or
other financial institution (a “Proposed Lender”) 
 

31 

 
identified by the Borrowers
that is reasonably satisfactory to the Administrative Agent (i) if such Proposed Lender agrees to assume all of the obligations of such Requesting Lender hereunder, and to purchase all of such Requesting Lender’s Loans hereunder for
consideration equal to the aggregate outstanding principal amount of such Requesting Lender’s Loans, together with interest accrued thereon to the date of such purchase, and satisfactory arrangements are made for payment to such Requesting
Lender of all other amounts payable hereunder to such Requesting Lender on or prior to the date of such transfer (including any fees accrued hereunder and any amounts that would be payable under Section 3 as if all of such Requesting Lender’s
Loans were being prepaid in full on such date) and (ii) if such Requesting Lender has requested compensation pursuant to Section 3.6, 3.7, 3.10 or 3.13, such Proposed Lender’s aggregate requested compensation, if any, pursuant to said Section
3.6, 3.7 or 3.10 with respect to such Requesting Lender’s Loans is lower than that of the Requesting Lender. Subject to the provisions of Section 10.3, such Proposed Lender shall be a “Lender” for all purposes hereunder. Without
prejudice to the survival of any other agreement of the Borrower hereunder the agreements of the Borrower contained in Sections 3.6, 3.7, 3.10, 3.13 and 10.5 (without duplication of any payments made to such Requesting Lender by the Borrower or the
Proposed Lender) shall survive for the benefit of such Requesting Lender under this Section 3.12 with respect to the time prior to such replacement. 
 

	 	3.13	 	Taxes. 

 

	 	(a)	 	Except as provided below in this subsection, all payments made by the Borrower under this Credit Agreement and any Notes shall be made free and clear of, and without
deduction or withholding for or on account of, any present or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any court, or
governmental body, agency or other official, excluding (A) taxes measured by or imposed upon the overall net income of any Lender or its applicable lending office, or any branch or affiliate thereof, and (B) all franchise taxes, branch taxes,
taxes on doing business or taxes on the overall capital or net worth of any Lender or its applicable lending office, or any branch or affiliate thereof, in each case imposed in lieu of net income taxes, imposed: (i) by the jurisdiction under the
laws of which such Lender, applicable lending office, branch or affiliate is organized or is located, or in which its principal executive office is located, or any nation within which such jurisdiction is located or any political subdivision
thereof; or (ii) by reason of any present or former connection between the jurisdiction imposing such tax and such Lender, applicable lending office, branch or affiliate other than a connection arising solely from such Lender having executed,
delivered or performed its obligations, or received payment under or enforced, this Credit Agreement or any Notes. If any such non-excluded taxes, levies, imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded
Taxes”) are required to be withheld from any amounts payable to the Administrative Agent or any Lender hereunder or under any Notes, (A) the amounts so payable to the Administrative Agent or such Lender shall be increased to the extent
necessary to yield to the Administrative Agent or such Lender (after payment of all Non-Excluded Taxes) interest or any such other amounts payable hereunder at the rates or in the amounts specified in this Credit Agreement and any Notes,
provided, however, that the Borrower shall be entitled to deduct and 

 

32 

 
withhold any
Non-Excluded Taxes and shall not be required to increase any such amounts payable to any Lender that is not incorporated under the laws of the United States of America or a state thereof if such Lender fails to comply with the requirements of
paragraph (b) of this subsection whenever any Non-Excluded Taxes are payable by the Borrower, and (B) as promptly as possible thereafter the Borrower shall send to the Administrative Agent for its own account or for the account of such Lender, as
the case may be, a certified copy of an original official receipt received by the Borrower showing payment thereof. If the Borrower fails to pay any Non-Excluded Taxes when due to the appropriate taxing authority or fails to remit to the
Administrative Agent the required receipts or other required documentary evidence, the Borrower shall indemnify the Administrative Agent and the Lenders for any incremental taxes, interest or penalties that may become payable by the Administrative
Agent or any Lender as a result of any such failure. The agreements in this subsection shall survive the termination of this Credit Agreement and the payment of the Loans and all other amounts payable hereunder. 
 

	 	(b)	 	Each Lender that is not incorporated under the laws of the United States of America or a state thereof shall: 

 
(X) (i) on or before the date of any payment
by the Borrower under this Credit Agreement or Notes to such Lender, deliver to the Borrower and the Administrative Agent two (2) duly completed copies of applicable United States Internal Revenue Service Form W-8BEN or W-8ECI, or successor
applicable form, as the case may be, certifying that it is entitled to receive payments under this Credit Agreement and any Notes without deduction or withholding of any United States federal income taxes; 
 
      (ii)
deliver to the Borrower and the Administrative Agent two (2) further copies of any such form or certification on or before the date that any such form or certification expires or becomes obsolete and after the occurrence of any event requiring a
change in the most recent form previously delivered by it to the Borrower; and 
 
      (iii) obtain such extensions of time for filing and complete such forms or certifications as may reasonably be requested by the Borrower or the Administrative Agent;
or 
 
(Y) in the case of any such
Lender that is not a “bank” within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code, (i) represent to the Borrower (for the benefit of the Borrower and the Administrative Agent) that it is not a bank within the meaning of
Section 881(c)(3)(A) of the Internal Revenue Code, (ii) agree to furnish to the Borrower on or before the date of any payment by the Borrower, with a copy to the Administrative Agent two (2) accurate and complete original signed copies of Internal
Revenue Service Form W-8BEN, or successor applicable form certifying to such Lender’s legal entitlement at the date of such certificate to an exemption from U.S. withholding tax under the provisions of Section 881(c) of the Internal Revenue
Code with respect to payments to be made 
 

33 

 
under this
Credit Agreement and any Notes (and to deliver to the Borrower and the Administrative Agent two (2) further copies of such form on or before the date it expires or becomes obsolete and after the occurrence of any event requiring a change in the most
recently provided form and, if necessary, obtain any extensions of time reasonably requested by the Borrower or the Administrative Agent for filing and completing such forms), and (iii) agree, to the extent legally entitled to do so, upon reasonable
request by the Borrower, to provide to the Borrower (for the benefit of the Borrower and the Administrative Agent) such other forms as may be reasonably required in order to establish the legal entitlement of such Lender to an exemption from
withholding with respect to payments under this Credit Agreement and any Notes; 
 
unless in any such case any change in treaty, law or regulation has occurred after the date such Person becomes a Lender hereunder which renders all such forms inapplicable or which would prevent such Lender from duly completing and
delivering any such form with respect to it and such Lender so advises the Borrower and the Administrative Agent. Each Person that shall become a Lender or a participant of a Lender pursuant to Section 10.3 shall, upon the effectiveness of the
related transfer, be required to provide all of the forms, certifications and statements required pursuant to this subsection, provided that in the case of a participant of a Lender the obligations of such participant of a Lender pursuant to
this subsection (b) shall be determined as if the participant of a Lender were a Lender except that such participant of a Lender shall furnish all such required forms, certifications and statements to the Lender from which the related participation
shall have been purchased. 
 

	 	3.14	 	Indemnity. 

 
The Borrower shall pay to each Lender and hold each Lender harmless from any loss or expense which such Lender may sustain or incur
(excluding loss of profit and other than through such Lender’s gross negligence or willful misconduct) as a consequence of (a) default by the Borrower in making a borrowing of, conversion into or continuation of LIBOR Loans and Competitive
Loans after the Borrower has given a notice requesting the same in accordance with the provisions of this Credit Agreement, (b) default by the Borrower in making any prepayment of a LIBOR Loan or a Competitive Loan after the Borrower has given a
notice thereof in accordance with the provisions of this Credit Agreement or (c) the making of a prepayment of LIBOR Loans or Competitive Loans on a day which is not the last day of an Interest Period with respect thereto. With respect to LIBOR
Loans and Competitive Loans, such payment may include an amount equal to the excess, if any, of (i) the amount of interest which would have accrued on the amount so prepaid, or not so borrowed, converted or continued, for the period from the date of
such prepayment or of such failure to borrow, convert or continue to the last day of the applicable Interest Period (or, in the case of a failure to borrow, convert or continue, the Interest Period that would have commenced on the date of such
failure) in each case at the applicable rate of interest for such Loans provided for herein (excluding, however, the Applicable Percentage included therein, if any) over (ii) the amount of interest (as reasonably determined by such Lender) which
would have accrued to such Lender on such amount by placing such amount on deposit for a comparable period with leading banks in the interbank LIBOR market (but excluding loss of profits). The covenants of the Borrower set forth in this Section 3.14
shall survive the termination of this Credit Agreement and the payment of the Loans and all other amounts payable hereunder. 
 

34 

 

	 	3.15	 	Pro Rata Treatment. 

 
Except to the extent otherwise provided herein: 
 

	 	(a)	 	Loans. Each Revolving Loan, each payment or prepayment of principal of any Revolving Loan, each payment of interest on the Revolving Loans, each payment of
Facility Fees, each reduction of the Revolving Committed Amount and each conversion or extension of any Revolving Loan, shall be allocated pro rata among the Lenders in accordance with the respective principal amounts of their outstanding Revolving
Loans and Participation Interests. With respect to Competitive Loans, if the Borrower fails to specify the particular Competitive Loan or Loans as to which any payment or other amount should be applied and it is not otherwise clear as to the
particular Competitive Loan or Loans to which such payment or other amounts relate, or any such payment or other amount is to be applied to Competitive Loans without regard to any such direction by the Borrower, then each payment or prepayment of
principal on Competitive Loans and each payment of interest or other amount on or in respect of Competitive Loans, shall be allocated to (i) the Competitive Loan bearing the highest interest rate, (ii) if two or more Competitive Loans each bear the
same interest rate, which is the highest interest rate among all Competitive Loans then outstanding, then pro rata among such Competitive Loans (iii) should such prepayment extinguish such Competitive Loans, then any remaining prepayment shall be
applied to each of the remaining Competitive Loans with the highest interest rate and (iv) any remaining payment or prepayment shall be allocated pro rata among the relevant Competitive Loan Lenders in accordance with the then outstanding amounts of
their respective Competitive Loans. 

 

	 	(b)	 	Advances. No Lender shall be responsible for the failure or delay by any other Lender in its obligation to make its ratable share of a borrowing hereunder;
provided, however, that the failure of any Lender to fulfill its obligations hereunder shall not relieve any other Lender of its obligations hereunder. Unless the Administrative Agent shall have been notified in writing by any Lender
prior to a borrowing that such Lender will not make the amount that would constitute its ratable share of such borrowing available to the Administrative Agent, the Administrative Agent may assume that such Lender is making such amount available to
the Administrative Agent, and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower a corresponding amount. If such amount is not made available to the Administrative Agent by such Lender within the time
period specified therefor hereunder, such Lender shall pay to the Administrative Agent, on demand, such amount with interest thereon at a rate equal to the Federal Funds Rate for a period of two (2) Business Days, and thereafter at the Base Rate,
for the period until such Lender makes such amount immediately available to the Administrative Agent. If such Lender does not pay such amounts to the Administrative Agent forthwith upon demand, the Administrative Agent may notify the Borrower and
request the Borrower to pay such amount to the Administrative Agent with interest at the Base Rate not later than 4:00 P.M. (Charlotte, North Carolina time) on the following Business Day. A certificate of the Administrative Agent submitted to any
Lender with respect to 

 

35 

 
any amounts
owing under this subsection shall be conclusive in the absence of manifest error. Nothing in the preceding shall act or be construed as a waiver of any claims or right of action that the Borrower may have against any Lender that defaults on the
payment to the Administrative Agent thereby causing the Borrower to repay the Administrative Agent such amount advanced. 
 

	 	3.16    Sharing	 	of Payments. 

 
The Lenders agree among themselves that, in the event that any Lender shall obtain payment in respect of any Loan or any other obligation
owing to such Lender under this Credit Agreement through the exercise of a right of setoff, banker’s lien or counterclaim, or pursuant to a secured claim under Section 506 of Title 11 of the United States Code or other security or interest
arising from, or in lieu of, such secured claim, received by such Lender under any applicable bankruptcy, insolvency or other similar law or otherwise, or by any other means, in excess of its pro rata share of such payment as provided for in this
Credit Agreement, such Lender shall promptly purchase from the other Lenders a participation in such Loans and other obligations in such amounts, and make such other adjustments from time to time, as shall be equitable to the end that all Lenders
share such payment in accordance with their respective ratable shares as provided for in this Credit Agreement. The Lenders further agree among themselves that if payment to a Lender obtained by such Lender through the exercise of a right of setoff,
banker’s lien, counterclaim or other event as aforesaid shall be rescinded or must otherwise be restored, each Lender which shall have shared the benefit of such payment shall, by repurchase of a participation theretofore sold, return its share
of that benefit (together with its share of any accrued interest payable with respect thereto) to each Lender whose payment shall have been rescinded or otherwise restored. The Borrower agrees that any Lender so purchasing such a participation may,
to the fullest extent permitted by law, exercise all rights of payment, including setoff, banker’s lien or counterclaim, with respect to such participation as fully as if such Lender were a holder of such Loan or other obligation in the amount
of such participation. Except as otherwise expressly provided in this Credit Agreement, if any Lender or the Administrative Agent shall fail to remit to the Administrative Agent or any other Lender an amount payable by such Lender or the
Administrative Agent to the Administrative Agent or such other Lender pursuant to this Credit Agreement on the date when such amount is due, such payments shall be made together with interest thereon for each date from the date such amount is due
until the date such amount is paid to the Administrative Agent or such other Lender at a rate per annum equal to the Federal Funds Rate. If under any applicable bankruptcy, insolvency or other similar law, any Lender receives a secured claim in lieu
of a setoff to which this Section 3.16 applies, such Lender shall, to the extent practicable, exercise its rights in respect of such secured claim in a manner consistent with the rights of the Lenders under this Section 3.16 to share in the benefits
of any recovery on such secured claim. 
 

	 	3.17    Payments,	 	Computations, Etc. 

 

	 	(a)	 	Each payment on account of an amount due from the Borrower hereunder or under any other Credit Document shall be made by the Borrower to the Administrative Agent for
the pro rata account of the Lenders entitled to receive such payment as provided herein in the currency in which such amount is denominated and in such funds as are customary at the place and time of payment for the settlement of
international payments in such currency. Without limiting 

 

36 

 
the terms of
the preceding sentence, accrued interest on any Loans denominated in a Foreign Currency shall be payable in the same Foreign Currency as such Loan. Upon request, the Administrative Agent will give the Borrower a statement showing the computation
used in calculating such amount, which statement shall be conclusive in the absence of manifest error. The obligation of the Borrower to make each payment on account of such amount in the currency in which such amount is denominated shall not be
discharged or satisfied by any tender, or any recovery pursuant to any judgment, which is expressed in or converted into any other currency, except to the extent such tender or recovery shall result in the actual receipt by the Administrative Agent
of the full amount in the appropriate currency payable hereunder. The Borrower agrees that its obligation to make each payment on account of such amount in the currency in which such amount is denominated shall be enforceable as an additional or
alternative claim for recovery in such currency of the amount (if any) by which such actual receipt shall fall short of the full amount of such currency payable hereunder, and shall not be affected by judgment being obtained for such amount.

 

	 	(b)	 	Except as otherwise specifically provided herein, all payments hereunder shall be made to the Administrative Agent in immediately available funds, without offset,
deduction, counterclaim or withholding of any kind, not later than 2:00 P.M. (local time in the place where such payment is required to be made pursuant to this subsection (b)) on the date when due, to the account specified on Schedule
3.17(b) or at such other place as may be designated by the Administrative Agent to the Borrower in writing. Payments received after such time shall be deemed to have been received on the next succeeding Business Day. In the event that Borrower
desires to make any payments hereunder by wire transfer initiated outside of the United States that is originated by any Person other than the Borrower, the Borrower shall provide the Administrative Agent with one Business Day’s prior written
notice containing the name, address, telephone and facsimile numbers of the wire transfer originator and the originator’s relationship to the Borrower. The Borrower shall, at the time it makes any payment under this Credit Agreement, specify to
the Administrative Agent the Loans, Fees, interest or other amounts payable by the Borrower hereunder to which such payment is to be applied (and in the event that it fails so to specify, or if such application would be inconsistent with the terms
hereof, the Administrative Agent shall distribute such payment to the Lenders subject to the terms of Section 3.15(a)). The Administrative Agent will distribute such payments to such Lenders, if any such payment is received prior to 12:00 Noon
(Charlotte, North Carolina time) on a Business Day in like funds as received prior to the end of such Business Day and otherwise the Administrative Agent will distribute such payment to such Lenders on the next succeeding Business Day. Whenever any
payment hereunder shall be stated to be due on a day which is not a Business Day, the due date thereof shall be extended to the next succeeding Business Day (subject to accrual of interest and Fees for the period of such extension), except that in
the case of LIBOR Loans, if the extension would cause the payment to be made in the next following calendar month, then such payment shall instead be made on the next preceding Business Day. Except as expressly provided otherwise herein, all
computations of interest and fees shall be made on the basis of actual number of days elapsed 

 

37 

 
over a year of
360 days, except with respect to computation of interest on Base Rate Loans which shall be calculated based on a year of 365 or 366 days, as appropriate. Interest shall accrue from and include the date of borrowing, but exclude the date of payment.

 

	 	(c)	 	Allocation of Payments After Event of Default. Notwithstanding any other provisions of this Credit Agreement to the contrary, after the occurrence and during
the continuance of an Event of Default, all amounts collected or received by the Administrative Agent or any Lender on account of the Loans or any other amounts outstanding under any of the Credit Documents shall be paid over or delivered as
follows: 

 
FIRST, to
the payment of all reasonable out-of-pocket costs and expenses (including without limitation reasonable attorneys’ fees) of the Administrative Agent in connection with enforcing the rights of the Lenders under the Credit Documents;

 
SECOND, to payment of any fees
owed to the Administrative Agent pursuant to the terms of the Credit Documents; 
 
THIRD, to the payment of all permitted reasonable out-of-pocket costs and expenses (including without limitation, reasonable attorneys’ fees) of each of the Lenders in connection with enforcing
its rights under the Credit Documents with respect to the Loans owing to such Lender; 
 
FOURTH, to the payment of all accrued interest and fees on or in respect of Obligations under the Credit Documents;

 
FIFTH, to the payment of the
outstanding principal amount of the Obligations under the Credit Documents (including the payment or cash collateralization of the outstanding LOC Obligations); 
 
SIXTH, to all other obligations which shall have become due and payable under the Credit
Documents or otherwise and not repaid pursuant to clauses “FIRST” through “FIFTH” above; and 
 
SEVENTH, to the payment of the surplus, if any, to whomever may be lawfully entitled to receive such surplus.

 
In carrying out the foregoing, (i) amounts received shall be
applied in the numerical order provided until exhausted prior to application to the next succeeding category; and (ii) each of the Lenders shall receive an amount equal to its pro rata share (based on the proportion that the then outstanding Loans
and LOC Obligations held by such Lender bears to the aggregate then outstanding Loans and LOC Obligations) of amounts available to be applied pursuant to clauses “FOURTH” and “SIXTH” above. 
 

	 	3.18    Obligation	 	of Lenders to Mitigate. 

 
Each Lender agrees that, as promptly as practicable after such Lender becomes aware of the occurrence of an event or the existence of a
condition that would cause such Lender to 
 

38 

 
become an Affected Lender or
that would entitle such Lender to receive payments under Sections 3.7 or 3.13, it will, to the extent not inconsistent with any applicable legal or regulatory restrictions, use reasonable efforts (i) to make, issue, fund or maintain the Commitments
of such Lender or the affected Loans of such Lender through another lending office of such Lender, or (ii) take such other measures as such Lender may deem reasonable, if as a result thereof the circumstances which would cause such Lender to be an
Affected Lender would cease to exist or the additional amounts which would otherwise be required to be paid to such Lender pursuant to Sections 3.7 or 3.13 would be reduced and if, as determined by such Lender in its sole discretion, the making,
issuing, funding or maintaining of such Commitments or Loans through such other lending office or in accordance with such other measures, as the case may be, would not otherwise materially adversely affect such Commitments or Loans or would not be
otherwise disadvantageous to the interests of such Lender. 
 

	 	3.19    Evidence	 	of Debt. 

 

	 	(a)	 	Each Lender shall maintain an account or accounts evidencing each Loan made by such Lender to the Borrower from time to time, including the amounts and currencies of
principal and interest payable and paid to such Lender from time to time under this Credit Agreement. Each Lender will make diligent efforts to maintain the accuracy of its account or accounts and to promptly update its account or accounts from time
to time, as necessary. 

 

	 	(b)	 	The Administrative Agent shall maintain the Register pursuant to Section 10.3(c) hereof, and a subaccount for each Lender, in which Register and subaccounts (taken
together) shall be recorded (i) the amount, currency, type and Interest Period of each such Loan hereunder, (ii) the amount of any principal or interest due and payable or to become due and payable to each Lender hereunder and (iii) the amount of
any sum received by the Administrative Agent hereunder from or for the account of the Borrower and each Lender’s share thereof. The Administrative Agent will make diligent efforts to maintain the accuracy of the subaccounts referred to in the
preceding sentence and to promptly update such subaccounts from time to time, as necessary. 

 

	 	3.20    Indemnification;	 	Nature of Issuing Lender’s Duties. 

 

	 	(a)	 	In addition to its other obligations under Section 2.3, the Borrower hereby agrees to protect, indemnify, pay and hold the Issuing Lender harmless from and against
any and all claims, demands, liabilities, damages, losses, costs, charges and expenses (including reasonable attorneys’ fees) that the Issuing Lender may incur or be subject to as a consequence, direct or indirect, of (i) the issuance of any
Letter of Credit, except to the extent resulting from the gross negligence, bad faith or willful misconduct of the Issuing Lender or (ii) the failure of the Issuing Lender to honor a drawing under a Letter of Credit as a result of any act or
omission, whether rightful or wrongful, of any present or future de jure or de facto government or Governmental Authority (all such acts or omissions, herein called “Government Acts”). 

 

39 

 

	 	(b)	 	As between the Borrower and the Issuing Lender, the Borrower shall assume all risks of the acts, omissions or misuse of any Letter of Credit by the beneficiary
thereof. The Issuing Lender shall not be responsible for: (i) the form, validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in connection with the application for and issuance of any Letter of Credit,
even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged; (ii) the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any Letter of
Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, that may prove to be invalid or ineffective for any reason; (iii) failure of the beneficiary of a Letter of Credit to comply fully with conditions required in
order to draw upon a Letter of Credit; (iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher; (v) errors in interpretation of
technical terms; (vi) any loss or delay in the transmission or otherwise of any document required in order to make a drawing under a Letter of Credit or of the proceeds thereof; and (vii) any consequences arising from causes beyond the control of
the Issuing Lender, including, without limitation, any Government Acts. None of the above shall affect, impair, or prevent the vesting of the Issuing Lender’s rights or powers hereunder. 

 

	 	(c)	 	In furtherance and extension and not in limitation of the specific provisions hereinabove set forth, any action taken or omitted by the Issuing Lender, under or in
connection with any Letter of Credit or the related certificates, if taken or omitted in good faith, shall not put such Issuing Lender under any resulting liability to the Borrower. It is the intention of the parties that this Credit Agreement shall
be construed and applied to protect and indemnify the Issuing Lender against any and all risks involved in the issuance of the Letters of Credit, all of which risks are hereby assumed by the Borrower, including, without limitation, any and all risks
of the acts or omissions, whether rightful or wrongful, of any Governmental Authority. The Issuing Lender shall not, in any way, be liable for any failure by the Issuing Lender or anyone else to pay any drawing under any Letter of Credit as a result
of any Government Acts or any other cause beyond the control of the Issuing Lender. 

 

	 	(d)	 	Nothing in this Section 3.20 is intended to limit the reimbursement obligation of the Borrower contained in Section 2.3 hereof. The obligations of the Borrower under
this Section 3.20 shall survive the termination of this Credit Agreement. No act or omissions of any current or prior beneficiary of a Letter of Credit shall in any way affect or impair the rights of the Issuing Lender to enforce any right, power or
benefit under this Credit Agreement. 

 

	 	(e)	 	Notwithstanding anything to the contrary contained in this Section 3.20, the Borrower shall have no obligation to indemnify any Issuing Lender in respect of any
liability incurred by such Issuing Lender arising out of the gross negligence, bad faith or willful misconduct of the Issuing Lender, as determined by a court of competent jurisdiction. 

 

40 

 

	 	(f)	 	The entries made in the accounts, Register and subaccounts maintained pursuant to subsection (b) of this Section 3.20 (and, if consistent with the entries of the
Administrative Agent, subsection (a) of this Section 3.20) shall be prima facie evidence of the existence and amounts of the obligations of the Borrower therein recorded; provided, however, that the failure of any Lender or the
Administrative Agent to maintain any such account, such Register or such subaccount, as applicable, or any error therein, shall not in any manner affect the obligation of the Borrower to repay the Loans made by such Lender in accordance with the
terms hereof. 

 
ARTICLE IV

 
CONDITIONS 
 

	 	4.1	 	Conditions to Closing. 

 
This Credit Agreement shall become effective upon, and the obligation of each Lender to make the initial Extensions of Credit hereunder is
subject to, the satisfaction of the following conditions precedent: 
 

	 	(a)	 	Execution of Credit Agreement and Credit Documents. Receipt of (i) multiple counterparts of this Credit Agreement, (ii) a Revolving Note for each Lender, in
each case executed by a duly authorized officer of each party thereto and in each case conforming to the requirements of this Credit Agreement, and (iii) an executed copy of the Multi-Year Credit Agreement. 

 

	 	(b)	 	Legal Opinion. Receipt of multiple counterparts of a legal opinion of counsel to the Borrower, relating to this Credit Agreement and the other Credit
Documents and the transactions contemplated herein and therein, in form and substance reasonably acceptable to the Administrative Agent which opinion shall include, without limitation, an opinion that the execution, delivery and performance of the
Credit Documents and the performance of the transactions contemplated thereby will not conflict with, result in a breach of, require any consent or permit any acceleration of (or require repayment of) any indebtedness of the Borrower or under any of
the Borrower’s corporate instruments and material agreements. 

 

	 	(c)	 	Corporate Documents. Receipt of the following (or their equivalent) for the Borrower: 

 
(i) Articles of Incorporation. Copies
of the articles of incorporation or charter documents certified to be true and complete as of a recent date by the appropriate governmental authority of the state of its incorporation. 
 
(ii) Resolutions. Copies of resolutions of the Board of Directors or comparable
managing body approving and adopting the respective Credit Documents, the transactions contemplated therein and authorizing execution and delivery thereof, certified by a secretary or assistant secretary as of the Effective Date to be true and
correct and in force and effect as of such date. 
 

41 

 
(iii) Bylaws. Copies of the bylaws or comparable operating agreement certified by a secretary or assistant secretary as of the Effective Date to be true and correct and in force and effect as of such date. 
 
(iv) Good Standing. A certificate of
good standing, existence or its equivalent certified as of a recent date by the appropriate governmental authority of the state of organization. 
 
(v) Secretary’s Certificate. A Secretary’s certificate for the Borrower dated as of the Effective Date
substantially in the form of Schedule 4.1(c)(v) with appropriate insertions and attachments. 
 

	(d)	 	Fees. Receipt of all fees, if any, then owing pursuant to the Administrative Agent’s Fee Letter, the Competitive Bid Request Fee Letter, Section 3.5 or
pursuant to any Credit Documents. 

 

	(e)	 	Section 4.2 Conditions. The conditions specified in Section 4.2 shall be satisfied. 

 

	(f)	 	Account Designation Letter. Receipt by the Administrative Agent of an executed counterpart of the Account Designation Letter. 

 

	(g)	 	Payment Instructions. Receipt by the Administrative Agent of payment instructions with respect to each wire transfer to be made by the Administrative Agent on
behalf of the Lenders or the Borrower on the Effective Date setting forth the amount of such transfer, the purpose of such transfer, the name and number of the account to which such transfer is to be made, the name and ABA number of the bank or
other financial institution where such account is located and the name and telephone number of an individual that can be contacted to confirm receipt of such transfer. 

 

	(h)	 	Financial Information. Receipt by the Administrative Agent of the consolidated financial statements of the Borrower and its subsidiaries referred to in
Section 5.1(a) and the five-year financial and operational projections for the Borrower and its Subsidiaries referred to in Section 5.1(b). 

 

	(i)	 	No Material Adverse Effect. No Material Adverse Effect shall have occurred since July 1, 2001. 

 

	 	4.2	 	Conditions to All Extensions of Credit. 

 
The obligation of each Lender to make any Extension of Credit hereunder (including the initial Loan to be made hereunder) is subject to
the satisfaction of the following conditions precedent on the date of making such Extension of Credit: 
 

	 	(a)	 	Representations and Warranties. The representations and warranties made by the Borrower herein or in any other Credit Document or which are contained in any
certificate furnished at any time under or in connection herewith or therewith shall be true and correct in all material respects on and as of the date of such Extension of Credit as if made on and as of such date (except for those which expressly

 

42 

 
relate to an
earlier date, which shall be true and correct in all material respects as of such earlier date, and except for those made in certificates which have been superseded or replaced by more recent certificates, so long as those made in superseded or
replaced certificates were true and correct in all material respects on the date made). 
 

	 	(b)	 	No Default or Event of Default. No Default or Event of Default shall have occurred and be continuing on such date or after giving effect to the Extension of
Credit to be made on such date unless such Default or Event of Default shall have been waived in accordance with this Credit Agreement. 

 

	 	(c)	 	Additional Conditions to Revolving Loans. If a Revolving Loan is requested pursuant to Section 2.1, all conditions set forth therein shall have been
satisfied. 

 

	 	(d)	 	Additional Conditions to Competitive Loans. If a Competitive Loan is requested pursuant to Section 2.2, all conditions set forth therein shall have been
satisfied. 

 

	 	(e)	 	Additional Conditions to Letters of Credit. If issuance of a Letter of Credit is requested pursuant to Section 2.3, all conditions set forth therein shall
have been satisfied. 

 

	 	(f)	 	Officer’s Certificate. With respect only to the initial Loan made hereunder, the Administrative Agent shall have received a Notice of Borrowing and a
certificate of a Responsible Officer certifying that (i) the Borrower is solvent as of the date the initial Loan is made, (ii) the Borrower is in pro forma compliance with the covenant in Section 6.7 both before and after giving effect to any Loans
to be made on the date the initial Loan is made; and (iii) the Borrower has satisfied any other conditions mutually agreeable to the parties. 

 

	 	(g)	 	Each request for an Extension of Credit and each acceptance by the Borrower of an Extension of Credit shall be deemed to constitute a representation and warranty by
each of the Borrower as of the date of such Loan that the conditions in paragraphs (a) through (e) of this Section have been satisfied. 

 
ARTICLE V 
 
REPRESENTATIONS AND WARRANTIES 
 
To induce the Lenders to enter into this Credit Agreement and to make Extensions of Credit herein provided for, the Borrower hereby
represents and warrants to the Administrative Agent and to each Lender that: 
 

	 	5.1	 	Financial Condition. 

 

	 	(a)	 	Each of the financial statements described below (copies of which have heretofore been provided to the Administrative Agent for distribution to the Lenders), have
been prepared in accordance with GAAP consistently applied throughout the periods covered thereby, are complete and correct in all material respects and present fairly the financial condition and results from 

 

43 

 
operations of
the entities and for the periods specified, subject in the case of interim company-prepared statements to normal year-end adjustments: 
 
(i) audited consolidated balance sheet of the Borrower and its consolidated subsidiaries dated as of December 31, 2001,
together with related statements of income and cash flows certified by PricewaterhouseCoopers LLP, certified public accountants; and 
 
(ii) a company-prepared consolidated condensed balance sheet of the Borrower and its consolidated subsidiaries dated as of
June 30, 2002, together with related consolidated condensed statements of income and cash flows. 
 

	 	(b)	 	The five-year financial and operations projections of the Borrower and its Subsidiaries, delivered pursuant to Section 4.1(h), have been prepared in good faith based
upon assumptions believed by the Borrower to be reasonable at the time made. 

 

	 	5.2	 	Organization; Existence. 

 
The Borrower (a) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (b) has
the corporate or other necessary power and authority, and the legal right to own and operate its property, to lease the property it operates as lessee and to conduct the business in which it is currently engaged and (c) is duly qualified as a
foreign entity and in good standing under the laws of each jurisdiction where its ownership, lease or operation of property or the conduct of its business requires such qualification, other than in such jurisdictions where the failure to be so
qualified and in good standing would not, in the aggregate, have a Material Adverse Effect. 
 

	 	5.3	 	Power; Authorization; Enforceable Obligations. 

 
The Borrower has the corporate or other necessary power and authority, and the legal right, to make, deliver and perform the Credit
Documents and has taken all necessary corporate or other action to authorize the execution, delivery and performance by it of the Credit Documents. No consent or authorization of, filing with, notice to or other act by or in respect of, any
Governmental Authority or any other Person is required in connection with acceptance of extensions of credit by the Borrower or with the execution, delivery or performance of any Credit Documents by the Borrower (other than those which have been
obtained, such filings as are required by the Securities and Exchange Commission (or the laws, rules and regulations administered by it), and to fulfill other reporting requirements with Governmental Authorities) or with the validity or
enforceability of any Credit Document against the Borrower. Each Credit Document to which it is a party and all materials provisions therein constitute valid and legally binding obligations of the Borrower enforceable in accordance with their
respective terms and shall provide the Administrative Agent and/or the Lenders the rights, powers and privileges purported to be created thereby, subject in each case to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles,. 
 

	 	5.4	 	Conflict. 

 

44 

 
The execution,
delivery and performance of the Credit Documents, the borrowings hereunder and the use of the proceeds of the Extensions of Credit will not (a) violate in any material respect any Requirement of Law applicable to the Borrower (except those as to
which waivers or consents have been obtained), (b) conflict with, result in a breach of or constitute a default under (i) the articles of incorporation, bylaws or other organizational documents of such Person, (ii) any material indenture, agreement
or other instrument to which such Person is a party or by which any of its properties may be bound or (iii) any approval of any Governmental Authority relating to such Person, or (c) result in, or require, the creation or imposition of any Lien on
any of their respective properties or revenues pursuant to any Requirement of Law. 
 

	 	5.5	 	No Material Litigation. 

 
Except as set forth on Schedule 5.5 no claim, litigation, investigation or proceeding of or before any arbitrator or Governmental
Authority is pending or, to the knowledge of the Borrower, threatened by or against the Borrower or any member of the Consolidated Group or against any of their respective properties which (a) relates to the Credit Documents or any of the
transactions contemplated hereby or thereby or (b) is reasonably likely to have a Material Adverse Effect. 
 

	 	5.6	 	No Default. 

 
No Default or Event of Default has occurred and is continuing. 
 

	 	5.7	 	Taxes. 

 
Except for such tax-related litigation disclosed on Schedule 5.7, the Borrower and each of its Subsidiaries have timely
filed or caused to be filed all United States federal income tax returns and all other material tax returns which, to the best knowledge of the Borrower, are required to be filed and has paid (a) all taxes shown to be due and payable on said returns
or (b) all taxes shown to be due and payable on any assessments of which it has received notice made against it or any of its property and all other taxes, fees or other charges imposed on it or any of its property by any Governmental Authority
(other than any (i) taxes, fees or other charges with respect to which the failure to pay, in the aggregate, would not have a Material Adverse Effect or (ii) taxes, fees or other charges the amount or validity of which are currently being contested
and with respect to which reserves in conformity with GAAP have been provided on the books of such Person), and no tax Lien has been filed with respect to any such tax, fee or other charge.  
 

	 	5.8	 	ERISA 

 
Except as is not reasonably likely to have a Material Adverse Effect: 
 

	 	(a)	 	(i) No ERISA Event has occurred during the five-year period ending on the date this representation is made or deemed made or is reasonably expected to occur, with
respect to any Plan; (ii) no “accumulated funding deficiency,” as such term is defined in Section 302 of ERISA and Section 412 of the Code, whether or not waived, has occurred with respect to any Plan (other than a Multiemployer Plan) and
no application for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has been made with respect to any Plan (other than a Multiemployer Plan); (iii) each Plan (other than a 

 

45 

 
Multiemployer
Plan) has been maintained, operated, and funded in compliance with its own terms and in material compliance with the provisions of ERISA, the Code, and any other applicable federal or state laws; (iv) each Plan (other than a Multiemployer Plan) that
is intended to qualify under Section 401(a) of the Code has received a favorable determination letter from the IRS or an application for such a letter is currently being processed by the IRS with respect thereto and, to the knowledge of the
Borrower, nothing has occurred which would prevent, or cause the loss of, such qualification, and (v) no lien in favor of the PBGC or a Plan has arisen or is reasonably likely to arise on account of any Plan. 
 

	 	(b)	 	No member of the Consolidated Group nor any ERISA Affiliate has incurred, or, to the knowledge of the Borrower, could be reasonably expected to incur, any liability
under Title IV of ERISA with respect to any Single Employer Plan, or any withdrawal liability under ERISA to any Multiemployer Plan or Multiple Employer Plan. 

 

	 	(c)	 	No prohibited transaction (within the meaning of Section 406 of ERISA or Section 4975 of the Code) or breach of fiduciary responsibility has occurred with respect to
a Plan which has subjected or may subject any member of the Consolidated Group or any ERISA Affiliate to any liability under Sections 406, 409, 502(i), or 502(l) of ERISA or Section 4975 of the Code, or under any agreement or other instrument
pursuant to which any member of the Consolidated Group or any ERISA Affiliate has agreed or is required to indemnify any person against any such liability. There are no pending, or to the knowledge of the Borrower, threatened claims, actions or
lawsuits, or action by any Governmental Authority, with respect to any Plan. 

 

	 	(d)	 	No member of the Consolidated Group nor any ERISA Affiliate has any material liability with respect to “expected post-retirement benefit obligations”
within the meaning of the Financial Accounting Standards Board Statement No. 106. 

 

	 	5.9	 	Governmental Regulations, Etc. 

 

	 	(a)	 	Neither the Borrower nor any of its Subsidiaries is engaged principally, or as one of its important activities, in the business of purchasing or carrying any
“margin stock” within the meaning given such term under Regulations T, U and X of the Board of Governors of the Federal Reserve System, as in effect from time to time, together with all official rulings and interpretations thereunder, and
no part of the proceeds of any Loan will be used to purchase or carry any margin stock in violation of Regulation U or to extend credit to others for the purpose of purchasing or carrying any margin stock, or be used for any purpose which violates,
or which is inconsistent with, the provisions of Regulation X. 

 

	 	(b)	 	The Borrower is not (i) an “investment company” registered or required to be registered under the Investment Company Act of 1940, as amended, and is not
controlled by such a company, or (ii) a “holding company”, or a “subsidiary company” of a “holding company”, or an “affiliate” of a “holding company” or of 

 

46 

 
a
“subsidiary” of a “holding company”, within the meaning of the Public Utility Holding Company Act of 1935, as amended. 
 

	 	5.10	 	Purpose of Extensions of Credit. 

 
The Extensions of Credit will be used solely (a) to refinance certain existing indebtedness of the Borrower, (b) to provide general
working capital and (c) for other general corporate purposes, including acquisitions. 
 

	 	5.11	 	Compliance with Laws; Contractual Obligations. 

 
The Borrower and its Subsidiaries are in compliance with all Requirements of Law, except to the extent that the failure to comply
therewith would not, in the aggregate, reasonably be expected to have a Material Adverse Effect. Neither the Borrower nor its Subsidiaries are in default under or with respect to any of its contractual obligations in any respect which could
reasonably be expected to have a Material Adverse Effect. 
 

	 	5.12	 	Accuracy and Completeness of Information. 

 
All factual information heretofore, contemporaneously or hereafter furnished by the Borrower in writing to the Administrative Agent or any
Lender for purposes of or in connection with this Credit Agreement or any other Credit Document, or any transaction contemplated hereby or thereby, is or will be true and accurate in all material respects as of the date stated therein and not
incomplete by omitting to state any material fact necessary to make such information not misleading, except for inaccuracies or omissions which could not reasonably be expected to have a Material Adverse Effect. There is no fact now known to the
Borrower which could reasonably be expected to have a Material Adverse Effect which fact has not been set forth herein, in the financial statements of the Borrower and its Subsidiaries furnished to the Administrative Agent and/or the Lenders prior
to the date hereof, or in any certificate, opinion or other written statement made or furnished by the Borrower to the Administrative Agent and/or the Lenders prior to the date hereof. 
 

	 	5.13	 	Environmental Matters. 

 
Except as set forth on Schedule 5.13, 
 

	 	(a)	 	To the knowledge of the Borrower or except where such violation or liability could not reasonably be expected to have a Material Adverse Effect, the facilities and
properties owned, leased or operated by the Borrower (the “Properties”) do not contain any Materials of Environmental Concern in amounts or concentrations which (i) constitute a violation of, or (ii) have resulted in liability
under, any Environmental Law. 

 

	 	(b)	 	To the knowledge of the Borrower or except where such violation or contamination could not reasonably be expected to have a Material Adverse Effect, the Properties
and all operations of the members of the Consolidated Group at the Properties are in compliance, and have in the last five years been in compliance, in all respects with all applicable Environmental Laws, and there is no contamination by Materials
of Environmental Concern at or under the 

 

47 

 
Properties or
violation of any Environmental Law with respect to the Properties or the business operated by the members of the Consolidated Group (the “Business”). 
 

	 	(c)	 	Except where such violation or liability could not reasonably be expected to have a Material Adverse Effect, none of the members of the Consolidated Group has
received any written notice of violation, alleged violation, non-compliance, liability or potential liability arising under Environmental Laws with regard to any of the Properties or the Business. 

 

	 	(d)	 	To the knowledge of the Borrower or except where such violation or liability could not reasonably be expected to have a Material Adverse Effect, Materials of
Environmental Concern have not been transported or disposed of from the Properties in violation of, or in a manner or to a location which has given rise to liability under any Environmental Law, nor have any Materials of Environmental Concern been
generated, treated, stored or disposed of at, on or under any of the Properties in violation of, or in a manner that has given rise to liability under, any applicable Environmental Law. 

 

	 	(e)	 	No judicial proceeding or governmental or administrative action, to the knowledge of the Borrower, is pending or threatened under any Environmental Law to which any
of the members of the Consolidated Group is or will be named as a party with respect to the Properties or the Business, nor are there any consent decrees or other decrees, consent orders, administrative orders or other orders, or other
administrative or judicial directives outstanding under any Environmental Law with respect to the Properties or the Business which could reasonably be expected to have a Material Adverse Effect. 

 

	 	(f)	 	To the knowledge of the Borrower or except where such violation or liability could not reasonably be expected to have a Material Adverse Effect, there has been no
release or threat of release of Materials of Environmental Concern at or from the Properties, or arising from or related to the operations of the members of the Consolidated Group in connection with the Properties or otherwise in connection with the
Business, in violation of or in amounts or in a manner requiring remediation under Environmental Laws. 

 
ARTICLE VI 
 
AFFIRMATIVE COVENANTS 
 
The Borrower covenants and agrees that so long as this Credit Agreement is in effect and until the Commitments have been terminated, no Loans remain outstanding and all amounts owing hereunder or under
any other Credit Document or in connection herewith or therewith have been paid in full: 
 

	 	6.1	 	Financial Statements. 

 

48 

 
The Borrower
will furnish, or cause to be furnished, to the Administrative Agent for distribution to the Lenders: 
 

	 	(a)	 	Audited Financial Statements. As soon as available, but in any event within 90 days after the end of each fiscal year, an audited consolidated balance sheet
of the Borrower and its subsidiaries as of the end of the fiscal year and the related consolidated statements of income, retained earnings, shareholders’ equity and cash flows for such fiscal year, audited by an independent certified public
accounting firm of nationally recognized standing, setting forth in each case in comparative form the figures for the previous year, reported without a “going concern” or like qualification or exception, or qualification indicating that
the scope of the audit was inadequate to permit such independent certified public accountants to certify such financial statements without such qualification. 

 

	 	(b)	 	Company-Prepared Financial Statements. As soon as available, but in any event within 45 days after the end of each of the first three fiscal quarters, a
company-prepared consolidated balance sheet of the Borrower and its subsidiaries as of the end of the quarter and related company-prepared consolidated statements of income, retained earnings, shareholders’ equity and cash flows for such
quarterly period and for the fiscal year to date; in each case setting forth in comparative form the consolidated figures for the corresponding period or periods of the preceding fiscal year or the portion of the fiscal year ending with such period,
as applicable, in each case subject to normal recurring year-end audit adjustments. 

 
All such financial statements shall be complete and correct in all material respects (subject, in the case of interim statements, to
normal recurring year-end audit adjustments) and shall be prepared in reasonable detail and, in the case of the annual and quarterly financial statements provided in accordance with subsections (a) and (b) above, in accordance with GAAP applied
consistently throughout the periods reflected therein and further accompanied by a description of, and an estimation of the effect on the financial statements on account of, a change in the application of accounting principles as provided in Section
1.3. 
 

	 	6.2	 	Certificates; Other Information. 

 
The Borrower will furnish, or cause to be furnished, to the Administrative Agent for distribution to the Lenders: 
 

	 	(a)	 	Officer’s Certificate. Concurrently with the delivery of the financial statements referred to in Sections 6.1(a) and 6.1(b) above, a certificate of a
Responsible Officer stating that, to the best of such Responsible Officer’s knowledge and belief, (i) the financial statements fairly present in all material respects the financial condition of the parties covered by such financial statements,
(ii) during such period the Borrower has observed or performed in all material respects its covenants and other agreements hereunder and under the other Credit Documents, and satisfied in all material respects the conditions contained in this Credit
Agreement to be observed, performed or satisfied by it (except to the extent waived in accordance with the provisions hereof) and (iii) such Responsible Officer has obtained no knowledge of any Default or Event of Default except as

 

49 

 
specified in
such certificate. Such certificate shall include the calculations required to indicate compliance with Section 6.7. A form of Officer’s Certificate is attached as Schedule 6.2(a). 
 

	 	(b)	 	Public Information. Within thirty days after the same are sent, copies of all reports (other than those otherwise provided pursuant to subsection 6.1) and
other financial information which the Borrower sends to its public stockholders, and within thirty days after the same are filed, copies of all financial statements and non-confidential reports which the Borrower may make to, or file with, the
Securities and Exchange Commission or any successor or analogous United States Governmental Authority. 

 

	 	(c)	 	Other Information. Promptly, such additional financial and other information as the Administrative Agent, at the request of any Lender, may from time to time
reasonably request, including, without limitation, any information requested pursuant to the Administrative Agent’s or any Lender’s customer identification program or anti-money laundering program under the Bank Secrecy Act.

 

	 	6.3	 	Notices. 

 
The Borrower will give notice to the Administrative Agent (which shall promptly transmit such notice to each Lender) of: 
 

	 	(a)	 	Defaults. Promptly (but in any event within three (3) Business Days) after knowledge thereof, the occurrence of any Default or Event of Default (without
giving effect to any notice requirement from the Agent or any Lender). 

 

	 	(b)	 	Legal Proceedings. Promptly following the receipt of written notification relating thereto, any litigation or proceeding (including without limitation, any
environmental proceeding) affecting the Borrower or its Subsidiaries which, if adversely determined, would reasonably be expected to have a Material Adverse Effect. 

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

	 	6.4	 	Maintenance of Existence and Compliance with Law. 

 

	 	(a)	 	The Borrower will preserve, renew and keep in full force and effect its corporate existence and take all reasonable action to maintain all rights, privileges,
licenses and franchises necessary or desirable in the normal conduct of its business. 

 

	 	(b)	 	The Borrower will, and will cause its Subsidiaries to, (i) comply with all Requirements of Law (including, without limitation, all Environmental Laws and ERISA
matters) applicable to them except to the extent that failure to comply with all Requirements of Law would not, in the aggregate, have a Material Adverse Effect, and (ii) without limiting the generality of clause (i), comply in all respects with all
Requirements of Law in the use of proceeds of the Loans. 

 

50 

 

	 	(c)	 	The Borrower will, and will cause its Subsidiaries to, perform and satisfy its contractual obligations except to the extent that failure to perform and satisfy such
obligations would not, in the aggregate, have a Material Adverse Effect. 

 

	 	6.5	 	Maintenance of Property; Insurance. 

 
The Borrower will, and will cause its Subsidiaries to, keep all material property necessary in its business in reasonably good working
order and condition (ordinary wear and tear and obsolescence excepted); maintain with financially sound and reputable insurance companies casualty, liability and such other insurance (which may include plans of self-insurance) with such coverage and
deductibles, and in such amounts as may be consistent with prudent business practice; and furnish to the Administrative Agent, upon written request, full information as to the insurance carried. 
 

	 	6.6	 	Inspection of Property; Books and Records; Discussions. 

 

	 	(a)	 	The Borrower will, and will cause its Subsidiaries to, keep proper corporate books and financial records in relation to its businesses and activities in conformity
with GAAP and Requirements of Law. 

 

	 	(b)	 	The Borrower will, and will cause its Subsidiaries to, permit, during regular business hours and upon reasonable notice by the Administrative Agent, the
Administrative Agent to visit and inspect any of its properties and examine and make abstracts (including photocopies) from any of its books and records (other than materials protected by the attorney-client, work product or other privilege and
materials which the Borrower and its Subsidiaries may not disclose without violation of a confidentiality obligation binding upon the Borrower or its Subsidiaries), and to discuss the business, operations, properties and financial and other
condition of the members of the Consolidated Group with officers and employees of the members of the Consolidated Group and with their independent certified public accountants. The cost of the inspection referred to in the preceding sentence shall
be for the account of the Lenders unless an Event of Default has occurred and is continuing, in which case the cost of such inspection shall be for the account of the Borrower. 

 

	 	6.7	 	Consolidated Funded Debt to Total Capitalization Ratio. 

 
The Consolidated Funded Debt to Total Capitalization Ratio will not at any time exceed 50%. 
 

	 	6.8	 	Use of Proceeds. 

 
The proceeds of the loans and extensions of credit hereunder will be used solely for the purposes provided in Section 5.10. 
 

51 

ARTICLE VII 
 
NEGATIVE COVENANTS 
 
The Borrower covenants and agrees that so long as this Credit Agreement is in effect and until the
Commitments have been terminated, no Loans remain outstanding and all amounts owing hereunder or under any other Credit Document or in connection herewith or therewith have been paid in full: 
 

	 	7.1	 	Funded Debt of Subsidiaries. 

 
The Borrower will not permit any Subsidiary (excluding any Joint Venture) to incur or permit to exist any Funded Debt, except (i) Funded
Debt existing on the date hereof and set forth on Schedule 7.1, and refundings and refinancings thereof, (ii) inter-company Funded Debt owed to the Borrower or other member of the Consolidated Group, (iii) Capital Lease obligations and
purchase money indebtedness incurred in the ordinary course of business, and refundings and refinancings thereof, and (iv) other Funded Debt of up to $200,000,000 in aggregate principal amount at time outstanding. 
 

	 	7.2	 	Negative Pledge. 

 
The Borrower will not, nor will it permit any Subsidiary to, contract, create, incur, assume or permit to exist any Lien on any of its
respective property or assets of any kind (whether real or personal, tangible or intangible), whether now owned or hereafter acquired, except: 
 

	 	(a)	 	Liens existing on the date hereof and securing indebtedness outstanding on the date hereof, each of which is set forth on Schedule 7.2(a);

 

	 	(b)	 	Liens securing inter-company indebtedness owed to members of the Consolidated Group other than Liens securing inter-company indebtedness owed by the Borrower;

 

	 	(c)	 	Liens on property and assets of any Person existing at the time such Person becomes a member of the Consolidated Group and not created in contemplation thereof and
provided that such Lien shall not extend to any other property of members of the Consolidated Group; 

 

	 	(d)	 	Liens on property or assets securing indebtedness incurred or assumed for the purpose of financing all or any part of the costs of acquiring, improving or
constructing such property or assets; provided that (i) with respect to real property (and personal property constituting a part of a project which is the subject of an industrial revenue bond, private activity bond, solid waste disposal bond
or similar financing), such Lien attaches concurrently with or within eighteen (18) months after the date of acquisition, completion, construction or improvement (including without limitation liens in connection with industrial revenue bonds,
private activity bonds, solid waste disposal bonds or other similar financing activity), (ii) with respect to personal property (other than the personal property referenced in clause (i) hereof), such Lien attaches concurrently with or within six

 

52 

 
(6) months
after the date of acquisition, and (iii) such Lien shall extend only to the property or asset to be acquired or improved with such financing; 
 

	 	(e)	 	Liens on property and assets prior to the acquisition thereof and not created in contemplation thereof, provided that such Lien shall not extend to any other
property of members of the Consolidated Group; 

 

	 	(f)	 	Liens arising out of the refinancing, extension, renewal or refunding of any indebtedness secured by a Lien permitted by any of the foregoing clauses of this
Section, provided that (i) such indebtedness is not secured by any additional property or assets, and (ii) the amount of such indebtedness secured by such Lien is not increased; 

 

	 	(g)	 	Liens incidental to the conduct of their business or the ownership of their assets that arise out of transactions involving the sale or purchase of goods or services
on a consignment basis and that do not (i) secure Funded Debt or (ii) in the aggregate materially detract from the value of the assets or materially impair the use thereof in the operation of business; 

 

	 	(h)	 	Liens imposed by law, such as Liens of carriers, warehousemen, mechanics, materialmen, repairmen and landlords, and other similar Liens incurred in the ordinary
course of business for sums not constituting borrowed money that are not overdue for a period of more than thirty (30) days or that are being contested in good faith by appropriate proceedings and for which adequate reserves have been established in
accordance with GAAP (if so required); 

 

	 	(i)	 	Liens incurred in the ordinary course of business in connection with worker’s compensation, unemployment insurance or other forms of governmental insurance or
benefits, or to secure the performance of letters of credit, bids, tenders, statutory obligations, surety and appeal bonds, leases, government contracts and other similar obligations (other than obligations for borrowed money) entered into in the
ordinary course of business; 

 

	 	(j)	 	Liens for taxes, assessments or other governmental charges or statutory obligations that are not delinquent or remain payable without any penalty or that are being
contested in good faith by appropriate proceedings and for which adequate reserves have been established in accordance with GAAP (if so required); 

 

	 	(k)	 	Liens on accounts and receivables established or arising in connection with a securitization of such accounts or accounts receivable or a secured borrowing of money
that requires the pledge of or a security interest in such accounts and receivables provided that (i) such Lien encumbers only the accounts and receivables which are the subject of the securitization, and (ii) in the case of a secured borrowing of
money any such Lien shall at all times be confined solely to such accounts and receivables that are required to secure such borrowing; and 

 

53 

 

	 	(l)	 	Liens not otherwise permitted by the foregoing clauses of this Section securing Funded Debt (other than the loans and obligations owing hereunder) in an aggregate
principal amount at any time outstanding not to exceed $100,000,000. 

 

	 	7.3	 	Consolidation, Merger and Sale of Assets. 

 

	 	(a)	 	The Borrower will not enter into a transaction of merger or consolidation, or sell, lease or otherwise transfer all or substantially all of its assets, except (i)
the Borrower may enter into a transaction of merger or consolidation with any other Person so long as (A) such other Person is organized under the laws of the United States, Canada or Mexico or one of their respective states or provinces, and (B)
the Borrower is the surviving entity, and (C) no Default or Event of Default will exist immediately after giving effect thereto, and (ii) the Borrower may sell, lease or transfer assets to Subsidiaries. 

 

	 	(b)	 	The Borrower will not permit its Subsidiaries to enter into a transaction of merger or consolidation, or sell, lease or otherwise transfer all or substantially all
of their assets (taken as a group), except (i) a Subsidiary may enter into a transaction of merger or consolidation with the Borrower or any other Subsidiary, or with any other Person so long as such (A) other Person is organized under the laws of
the United States, Canada or Mexico or one of their respective states or provinces, and (B) the Borrower or a Subsidiary is the surviving entity, and (C) no Default or Event of Default will exist immediately after giving effect thereto, and (ii)
Subsidiaries may sell, lease or transfer assets to the Borrower or other Subsidiaries. 

 

	 	7.4	 	Transactions with Affiliates. 

 
The Borrower will not, and will not permit its Subsidiaries to, enter into any transaction or series of transactions, whether or not in
the ordinary course of business, with any of its officers, directors or Affiliates other than on terms and conditions not less favorable as would be obtainable in a comparable arm’s-length transaction with an unrelated party, except (i)
transactions between and among the Borrower and its Subsidiaries not involving any other Affiliates, and (ii) transactions approved by a special committee comprised of independent directors of the board of directors of the Borrower (all which
approved related-party transactions will be disclosed in writing to the Administrative Agent and the Lenders). 
 

	 	7.5	 	Permitted Investments. 

 
The Borrower will not, and will not permit its Subsidiaries to, make Investments, as a group, in Subsidiaries, joint ventures or other
entities or enterprises that are organized outside the United States, Canada or Mexico or one of their respective states or provinces in an aggregate amount (based on original investment or cost basis without regard to accumulated income or
accretion in value apart therefrom) in excess of thirty-five percent (35%) of Consolidated Net Worth (calculated, at any time, in accordance with the last financial statements delivered to the Administrative Agent pursuant to Section 6.1 prior to
such determination). 
 
7.6    Limitation on Certain Restrictions. The Borrower will not, and will not permit or cause any of its Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to
exist 
 

54 

 
or become effective any
restriction or encumbrance on (i) the ability of the Borrower and its Subsidiaries to perform and comply with their respective obligations under the Credit Documents or (ii) the ability of any Subsidiary (other than any Joint Venture) to make any
dividend payments or other distributions in respect of its capital stock, to repay indebtedness owed to the Borrower or any other Subsidiary, to make loans or advances to the Borrower or any other Subsidiary, or to transfer any of its assets or
properties to the Borrower or any other Subsidiary, in each case other than such restrictions or encumbrances existing under or by reason of the Credit Documents or applicable Requirements of Law. 
 
ARTICLE VIII 
 
EVENTS OF DEFAULT 
 

	 	8.1	 	Events of Default. 

 
An Event of Default shall exist upon the occurrence of any of the following specified events (each an “Event of
Default”): 
 

	 	(a)	 	the failure (i) to pay when due any principal of any Loan or any reimbursement obligation owing in respect of a Letter of Credit; or (ii) to pay within five (5)
Business Days following receipt by the Borrower of notice that any interest, fees or other amounts owing hereunder or under any of the other Credit Documents is due (provided that notice hereunder shall be deemed satisfied by any regular invoice or
other similar payment correspondence and does not require any type of special notice of late payment); 

 

	 	(b)	 	any representation, warranty, certification or statement made or deemed made by the Borrower herein or in any of the other Credit Documents, or in any statement or
certificate delivered pursuant hereto or thereto, shall prove untrue or misleading in any material respect when made or deemed made; 

 

	 	(c)	 	the failure to observe or perform those covenants contained in Sections 6.3(a), 6.4(a) (with respect to existence), 6.6(b), 6.7, 6.8 or in Article 7;

 

	 	(d)	 	the failure to observe or perform any other covenants or agreements contained herein or in the other Credit Documents (other than those covered by the foregoing
clauses (a), (b) or (c) of this Section), and such failure shall continue unremedied for a period of thirty (30) days following the earlier of (i) first knowledge thereof by the Borrower and (ii) notice by the Administrative Agent to the Borrower
thereof; 

 

	 	(e)	 	with respect to Funded Debt of the Borrower and its wholly owned Subsidiaries (other than Funded Debt hereunder) in excess of $75,000,000 in principal amount, (i)
there shall occur a default in the payment of any principal or interest amount when due (beyond applicable grace or cure periods, if any) of any such Funded Debt, or (ii) the principal amount of any such Funded Debt shall be declared due

 

55 

 
and payable or
required to be repaid prior to its stated maturity, whether by acceleration, mandatory prepayment or otherwise; 
 

	 	(f)	 	the Borrower shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its property, or shall consent to any such
relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against it, or shall make a general assignment for the benefit of creditors, or shall fail generally, or shall admit in
writing its inability, to pay its debts as they become due, or shall take any corporate action to authorize any of the foregoing; or 

 

	 	(g)	 	an involuntary case or other proceeding shall be commenced against the Borrower seeking liquidation, reorganization or other relief with respect to it or its debts
under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its property, and such involuntary
case or other proceeding shall remain undismissed and unstayed for a period of sixty (60) days; or an order for relief shall be entered against the Borrower under the federal bankruptcy laws as now or hereafter in effect; or

 

	 	(h)	 	one or more judgments or orders for the payment of money in an aggregate amount in excess of $75,000,000 shall be rendered against the Borrower or any Subsidiary and
such judgment or order shall continue unsatisfied and unstayed or unbonded for a period of thirty (30) days; or 

 

	 	(i)	 	the Borrower or any member of the Controlled Group shall fail to pay when due any amount in excess of $75,000,000 which it shall have become liable to pay to the
PBGC or to a Plan under Title IV of ERISA; or the PBGC shall institute proceedings under Title IV of ERISA to terminate or to cause a trustee to be appointed to administer any such Plan or Plans or a proceeding shall be instituted by a fiduciary of
any such Plan or Plans to enforce Section 515 or 4219(c)(5) of ERISA and such proceeding shall not have been dismissed within thirty (30) days thereafter; or a condition of which the Borrower has knowledge shall exist by reason of which the PBGC
would be entitled to obtain a decree adjudicating that any such Plan or Plans must be terminated; or 

 

	 	(j)	 	a federal tax lien shall be filed against the Borrower under Section 6323 of the Code or a lien of the PBGC shall be filed against the Borrower or any Subsidiary
under Section 4068 of ERISA and in either case such lien shall remain undischarged for a period of thirty (30) days after the date of filing; or 

 

	 	(k)	 	(i) any Person or two or more Persons acting in concert shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange
Commission under the Securities Exchange Act of 1934), directly or indirectly, of 15% or more of the outstanding shares of the voting stock of the 

 

56 

 
Borrower; or
(ii) as of any date a majority of the Board of Directors of the Borrower consists of individuals who were not either (A) directors of the Borrower as of the corresponding date of the previous year, (B) selected or nominated to become directors by
the Board of Directors of the Borrower of which a majority consisted of individuals described in clause (A), or (C) selected or nominated to become directors by the Board of Directors of the Borrower of which a majority consisted of individuals
described in clause (A) and individuals described in clause (B); or 
 

	 	(l)	 	the occurrence of an Event of Default under the Multi-Year Credit Agreement. 

 

	 	8.2	 	Acceleration; Remedies. 

 
Upon the occurrence and during the continuance of an Event of Default, the Administrative Agent may, or upon the request and direction of
the Required Lenders shall, by written notice to the Borrower take any or any combinations of the following actions: 
 
(i) Termination of Commitments. Declare the Commitments terminated whereupon the Commitments shall be immediately
terminated. 
 
(ii)
Acceleration. Declare the unpaid principal of and any accrued interest in respect of all Loans and any and all other indebtedness or obligations of any and every kind owing by the Borrower to the Administrative Agent and/or any of the Lenders
hereunder to be due and direct the Borrower to pay to the Administrative Agent cash collateral as security for the LOC Obligations for subsequent drawings under then outstanding Letters of Credit an amount equal to the maximum amount of which may be
drawn under Letters of Credit then outstanding, whereupon the same shall be immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower. 
 
(iii) Enforcement of Rights. Enforce
any and all rights and interests created and existing under the Credit Documents, whether at law or in equity. 
 
Notwithstanding the foregoing, if an Event of Default specified in Section 8.1(f) or (g) shall occur, then the Commitments shall
automatically terminate and all Loans, all accrued interest in respect thereof, all accrued and unpaid Fees, all cash collateral as security for LOC Obligations, and other indebtedness or obligations owing to the Administrative Agent and/or any of
the Lenders hereunder automatically shall immediately become due and payable without presentment, demand, protest or the giving of any notice or other action by the Administrative Agent or the Lenders, all of which are hereby waived by the Borrower.

 
 

57 

ARTICLE IX 
 
AGENCY PROVISIONS 
 

	 	9.1	 	Appointment. 

 
Each Lender hereby designates and appoints Wachovia as administrative agent of such Lender to act as specified herein and in the other
Credit Documents, and each such Lender hereby authorizes the Administrative Agent as the Administrative Agent for such Lender, to take such action on its behalf under the provisions of this Credit Agreement and the other Credit Documents and to
exercise such powers and perform such duties as are expressly delegated by the terms hereof and of the other Credit Documents, together with such other powers as are reasonably incidental thereto. Each Lender further directs and authorizes the
Administrative Agent to execute releases (or similar agreements) to give effect to the provisions of this Credit Agreement and the other Credit Documents. Notwithstanding any provision to the contrary elsewhere herein and in the other Credit
Documents, the Administrative Agent shall not have any duties or responsibilities, except those expressly set forth herein and therein, or any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Credit Agreement or any of the other Credit Documents, or shall otherwise exist against the Administrative Agent. The provisions of this Section are solely for the benefit of the Administrative
Agent and the Lenders and the Borrower shall have any rights as a third party beneficiary of the provisions hereof. In performing its functions and duties under this Credit Agreement and the other Credit Documents, the Administrative Agent shall act
solely as Administrative Agent of the Lenders and does not assume and shall not be deemed to have assumed any obligation or relationship of agency or trust with or for the Borrower or any of its affiliates. 
 

	 	9.2	 	Delegation of Duties. 

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

	 	9.3	 	Exculpatory Provisions. 

 
The Administrative Agent and its officers, directors, employees, agents, attorneys-in-fact or affiliates shall not be (i) liable for any
action lawfully taken or omitted to be taken by it or such Person in good faith under or in connection herewith or in connection with any of the other Credit Documents (except for its or such Person’s own gross negligence or willful
misconduct), or (ii) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by the Borrower contained herein or in any of the other Credit Documents or in any certificate, report, document,
financial statement or other written or oral statement referred to or provided for in, or received by the Administrative Agent under or in connection herewith or in connection with the other Credit Documents, or enforceability or sufficiency
therefor of any of the other Credit Documents, or for any failure of the Borrower to perform its obligations hereunder or thereunder. The Administrative Agent shall not be 
 

58 

 
responsible to any Lender for
the effectiveness, genuineness, validity, enforceability, collectability or sufficiency of this Credit Agreement, or any of the other Credit Documents or for any representations, warranties, recitals or statements made herein or therein or made by
the Borrower in any written or oral statement or in any financial or other statements, instruments, reports, certificates or any other documents in connection herewith or therewith furnished or made by the Administrative Agent to the Lenders or by
or on behalf of the Borrower to the Administrative Agent or any Lender or be required to ascertain or inquire as to the performance or observance of any of the terms, conditions, provisions, covenants or agreements contained herein or therein or as
to the use of the proceeds of the Loans or of the existence or possible existence of any Default or Event of Default or to inspect the properties, books or records of the Borrower or any of its affiliates. 
 

	 	9.4	 	Reliance on Communications. 

 
The Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any note, writing, resolution, notice,
consent, certificate, affidavit, letter, cablegram, telegram, telecopy, telex or teletype message, statement, order or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person
or Persons and upon advice and statements of legal counsel (including, without limitation, counsel to the Borrower, independent accountants and other experts selected by the Administrative Agent with reasonable care). The Administrative Agent may
deem and treat the Lenders as the owners of their respective interests hereunder for all purposes unless a written notice of assignment, negotiation or transfer thereof shall have been filed with the Administrative Agent in accordance with Section
10.3(b) hereof. The Administrative Agent shall be fully justified in failing or refusing to take any action under this Credit Agreement or under any of the other Credit Documents unless it shall first receive such advice or concurrence of the
Required Lenders as it deems appropriate or it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. The
Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, hereunder or under any of the other Credit Documents in accordance with a request of the Required Lenders (or to the extent specifically provided in
Section 10.6, all the Lenders) and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders (including their successors and assigns). 
 

	 	9.5	 	Notice of Default. 

 
The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default hereunder,
except with respect to defaults on payment of principal, interest and fees required to be paid to the Administrative Agent for the account of the Lenders, unless the Administrative Agent has received notice from a Lender or the Borrower referring to
the Credit Document, describing such Default or Event of Default and stating that such notice is a “notice of default.” In the event that the Administrative Agent receives such a notice, the Administrative Agent shall give prompt notice
thereof to the Lenders. The Administrative Agent shall take such action with respect to such Default or Event of Default as shall be reasonably directed by the Required Lenders. 
 

59 

 

	 	9.6	 	Non-Reliance on Administrative Agent and Other Lenders. 

 
Each Lender expressly acknowledges that each of the Administrative Agent and its officers, directors,
employees, agents, attorneys-in-fact or affiliates has not made any representations or warranties to it and that no act by the Administrative Agent or any affiliate thereof hereinafter taken, including any review of the affairs of the Borrower or
any of its affiliates, shall be deemed to constitute any representation or warranty by the Administrative Agent to any Lender. Each Lender represents to the Administrative Agent that it has, independently and without reliance upon the Administrative
Agent or any other Lender, and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, assets, operations, property, financial and other conditions, prospects and
creditworthiness of the Borrower or its affiliates and made its own decision to make its Loans hereunder and enter into this Credit Agreement. Each Lender also represents that it will, independently and without reliance upon the Administrative 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 analysis, appraisals and decisions in taking or not taking action under this Credit Agreement, and to make
such investigation as it deems necessary to inform itself as to the business, assets, operations, property, financial and other conditions, prospects and creditworthiness of the Borrower and its affiliates. Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the Administrative Agent hereunder, the Administrative Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business,
operations, assets, property, financial or other conditions, prospects or creditworthiness of the Borrower or any of its affiliates which may come into the possession of the Administrative Agent or any of its officers, directors, employees, agents,
attorneys-in-fact or affiliates. 
 

	 	9.7	 	Indemnification. 

 
The Lenders agree to indemnify the Administrative Agent in its capacity as such (to the extent not reimbursed by the Borrower and without
limiting the obligation of the Borrower to do so), ratably according to their respective Commitments (or if the Commitments have expired or been terminated, in accordance with the respective principal amounts of outstanding Loans and Participation
Interests of the Lenders), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever which may at any time (including without limitation at
any time following the final payment of all of the obligations of the Borrower hereunder and under the other Credit Documents) be imposed on, incurred by or asserted against the Administrative Agent in its capacity as such in any way relating to or
arising out of this Credit Agreement or the other Credit Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by the Administrative Agent under
or in connection with any of the foregoing; provided that no Lender shall be liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from the gross negligence or willful misconduct of the Administrative Agent. If any indemnity furnished to the Administrative Agent for any purpose shall, in the opinion of the Administrative Agent, be insufficient or become impaired, the
Administrative Agent may call for additional indemnity and cease, or not commence, to do the acts indemnified against until such additional indemnity is furnished. The 
 

60 

 
agreements in this Section
shall survive the repayment of the Loans and other obligations under the Credit Documents and the termination of the Commitments hereunder. 
 

	 	9.8	 	Administrative Agent in its Individual Capacity. 

 
The Administrative Agent and its affiliates may make loans to, accept deposits from and generally engage in any kind of business with the
Borrower, its Subsidiaries or their affiliates as though the Administrative Agent were not the Administrative Agent hereunder. With respect to the Loans made by the Administrative Agent hereunder and all obligations of the Borrower hereunder and
under the other Credit Documents, the Administrative Agent shall have the same rights and powers under this Credit Agreement as any Lender and may exercise the same as though it were not the Administrative Agent, and the terms “Lender” and
“Lenders” shall include the Administrative Agent in its individual capacity. 
 

	 	9.9	 	Successor Administrative Agent. 

 
The Administrative Agent may, at any time, resign upon 20 Business Days’ written notice to the Lenders and the Borrower, and may be
removed, upon show of cause, by the Required Lenders upon 30 days’ written notice to the Administrative Agent. Upon any such resignation or removal, the Required Lenders and the Borrower shall have the right to appoint a successor
Administrative Agent. If no successor Administrative Agent shall have been so appointed by the Required Lenders, and shall have accepted such appointment, within 30 days after the notice of resignation or notice of removal, as appropriate, then the
retiring Administrative Agent shall select a successor Administrative Agent provided such successor is a Lender hereunder or a commercial bank organized under the laws of the United States of America or of any State thereof and has a combined
capital and surplus of at least $400,000,000. Upon the acceptance of any appointment as Administrative Agent hereunder by a successor, such successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations as Administrative Agent, as appropriate, under this Credit Agreement and the other Credit Documents
and the provisions of this Section 9.9 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent under this Credit Agreement. 
 

	 	9.10	 	Other Agents, Arrangers and Book Runners. 

 
None of the Lenders or other Persons identified on the facing page or signature pages of this Credit Agreement or the other Credit
Documents as a “Syndication Agent,” “Documentation Agent,” “Co-Lead Arranger” or “Joint Book Runner” shall have any right, power, obligation, liability, responsibility or duty under this Credit Agreement and
the other Credit Documents other than, in the case of such Lenders, those applicable to all Lenders as such. Without limiting the foregoing, none of the Lenders or other Persons so identified shall have or be deemed to have any fiduciary
relationship with any Lender. Each Lender acknowledges that it has not relied, and will not rely, on any of the Lenders or other Persons so identified in deciding to enter into this Credit Agreement or in taking or not taking action hereunder.

 

61 

 
ARTICLE X

 
MISCELLANEOUS 
 

	 	10.1	 	Notices. 

 
Except as otherwise expressly provided herein, all notices and other communications shall have been duly given and shall be effective (i)
when delivered, (ii) when transmitted via telecopy (or other facsimile device) to the number set out below, (iii) the day following the day on which the same has been delivered prepaid to a reputable national overnight air courier service, or (iv)
the third Business Day following the day on which the same is sent by certified or registered mail, postage prepaid, in each case to the respective parties at the address, in the case of the Borrower and the Administrative Agent, set forth below,
and, in the case of the Lenders, set forth on Schedule 10.1, or at such other address as such party may specify by written notice to the other parties hereto: 
 
if to the Borrower: 
 
Nucor Corporation 
2100 Rexford Road 
Charlotte, North Carolina 28211 
Attn: Terry S. Lisenby

Chief Financial Officer 
Telephone: (704) 366-7000 
Telecopy: (704) 362-4208 
 
with a copy to: 
 
Moore & Van Allen, PLLC 
100 North Tryon Street,
47th Floor 
Charlotte, North Carolina 28202 
Attn: Mike Delaney

Telephone: (704) 331-3519 
Telecopy: (704) 339-5819 
 
if to the Administrative Agent: 
 
Wachovia Bank, National Association 
Charlotte Plaza 
201 South College Street, CP-6 
Charlotte, North Carolina
28288 
Attn: Jorge Gonzalez 
Telephone: (704) 383-8461 
Telecopy: (704) 715-1117 
 
with a copy to: 
 
Wachovia Bank, National Association 
Charlotte Plaza

 
 

62 

 
201 South College Street, CP-23 
Charlotte, North Carolina 28288-0680 
Attn: Syndication Agency Services 
Telephone: (704) 715-1093 
Telecopy: (704) 383-0835 
 

	 	10.2	 	Right of Set-Off. 

 
In addition to any rights now or hereafter granted under applicable law or otherwise, and not by way of limitation of any such rights,
upon the occurrence of an Event of Default, each Lender is authorized at any time and from time to time, without presentment, demand, protest or other notice of any kind (all of which rights being hereby expressly waived), to set-off and to
appropriate and apply any and all deposits (general or special) and any other indebtedness at any time held or owing by such Lender (including, without limitation branches, agencies or affiliates of such Lender wherever located) to or for the credit
or the account of the Borrower against obligations and liabilities of the Borrower to such Lender hereunder, under the Notes or the other Credit Documents, irrespective of whether such Lender shall have made any demand hereunder and although such
obligations, liabilities or claims, or any of them, may be contingent or unmatured, and any such set-off shall be deemed to have been made immediately upon the occurrence of an Event of Default even though such charge is made or entered on the books
of such Lender subsequent thereto. Any Person purchasing a participation in the Loans and Commitments hereunder pursuant to Section 3.16 or Section 10.3(d) may exercise all rights of set-off with respect to its participation interest as fully as if
such Person were a Lender hereunder. 
 

	 	10.3	 	Benefit of Agreement. 

 

	 	(a)	 	Generally. This Credit Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective successors and assigns of the parties
hereto; provided that the Borrower may neither assign nor transfer any of its interests without prior written consent of the Lenders; provided further that the rights of each Lender to transfer, assign or grant participations in
its rights and/or obligations hereunder shall be limited as set forth in this Section 10.3, provided however that nothing herein shall prevent or prohibit any Lender from (i) pledging its Loans hereunder to a Federal Reserve Bank in
support of borrowings made by such Lender from such Federal Reserve Bank, or (ii) granting assignments or selling participations in such Lender’s Loans and/or Commitments hereunder to its parent company and/or to any affiliate or Subsidiary of
such Lender. 

 

	 	(b)	 	Assignments. Each Lender may assign all or a portion of its rights and obligations hereunder, pursuant to an assignment agreement substantially in the form of
Schedule 10.3(b), to (i) any Lender or any affiliate or Subsidiary of a Lender, or (ii) any other commercial bank, financial institution or “accredited investor” (as defined in Regulation D of the Securities and Exchange Commission)
reasonably acceptable to the Administrative Agent (such consent shall not be unreasonably withheld or delayed) and, so long as no Default or Event of Default has occurred and is continuing, with the approval of the 

 

63 

 
Borrower
(which approval shall not be unreasonably withheld or delayed); provided that (i) any such assignment (other than any assignment to an existing Lender) shall be in a minimum aggregate amount of $5,000,000 (or, if less, the remaining amount of
the Commitment being assigned by such Lender) of the Commitments and in integral multiples of $1,000,000 above such amount and (ii) each such assignment (other than Competitive Loans) shall be of a constant, not varying, percentage of all such
Lender’s rights and obligations under this Credit Agreement. Any assignment hereunder shall be effective upon delivery to the Administrative Agent of written notice of the assignment together with a transfer fee of $3,500 payable to the
Administrative Agent for its own account from and after the later of (i) the effective date specified in the applicable assignment agreement and (ii) the date of recording of such assignment in the Register pursuant to the terms of subsection (c)
below. The assigning Lender will give prompt notice to the Administrative Agent and the Borrower of any such assignment. Upon the effectiveness of any such assignment (and after notice to, and (to the extent required pursuant to the terms hereof),
with the consent of, the Borrower as provided herein), the assignee shall become a “Lender” for all purposes of this Credit Agreement and the other Credit Documents and, to the extent of such assignment, the assigning Lender shall be
relieved of its obligations hereunder to the extent of the Loans and Commitment components being assigned. Along such lines the Borrower agrees that upon notice of any such assignment, it will promptly provide to the assigning Lender and to the
assignee separate promissory notes in the amount of their respective interests substantially in the form of the original Note. By executing and delivering an assignment agreement in accordance with this  Section 10.3(b), the assigning Lender
thereunder and the assignee thereunder shall be deemed to confirm to and agree with each other and the other parties hereto as follows: (i) such assigning Lender warrants that it is the legal and beneficial owner of the interest being assigned
thereby free and clear of any adverse claim; (ii) except as set forth in clause (i) above, 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 Credit Agreement, any of the other Credit Documents or any other instrument or document furnished pursuant hereto or thereto, or the execution, legality, validity, enforceability, genuineness, sufficiency or value of this
Credit Agreement, any of the other Credit Documents or any other instrument or document furnished pursuant hereto or thereto or the financial condition of the Borrower or any of its affiliates or the performance or observance by the Borrower of any
of its obligations under this Credit Agreement, any of the other Credit Documents or any other instrument or document furnished pursuant hereto or thereto; (iii) such assignee represents and warrants that it is legally authorized to enter into such
assignment agreement; (iv) such assignee confirms that it has received a copy of this Credit Agreement, the other Credit Documents and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to
enter into such assignment agreement; (v) such assignee will independently and without reliance upon the Administrative 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 
 

64 

 
Credit
Agreement and the other Credit Documents; (vi) such assignee appoints and authorizes the Administrative Agent to take such action on its behalf and to exercise such powers under this Credit Agreement or any other Credit Document as are delegated to
the Administrative Agent by the terms hereof or thereof, together with such powers as are reasonably incidental thereto; and (vii) such assignee agrees that it will perform in accordance with their terms all the obligations which by the terms of
this Credit Agreement and the other Credit Documents are required to be performed by it as a Lender (including without limitation the requirements of Section 3.13). 
 

	 	(c)	 	Maintenance of Register. The Administrative Agent shall maintain at one of its offices in Charlotte, North Carolina a copy of each Lender assignment agreement
delivered to it in accordance with the terms of subsection (b) above and a register for the recordation of the identity of the principal amount, type and Interest Period of each Loan outstanding hereunder, the names, addresses and the Commitments of
the Lenders pursuant to the terms hereof from time to time (the “Register”). The Administrative Agent will make diligent efforts to maintain the accuracy of the Register and to promptly update the Register from time to time, as
necessary. The entries in the Register shall be conclusive in the absence of manifest error and the Borrower, the Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a
Lender hereunder for all purposes of this Credit Agreement. The Register shall be available for inspection by the Borrower and each Lender, at any reasonable time and from time to time upon reasonable prior notice. 

 

	 	(d)	 	Participations. Each Lender may sell, transfer, grant or assign participations in all or any part of such Lender’s interests and/or obligations
hereunder; provided that (i) such selling Lender shall remain a “Lender” for all purposes under this Credit Agreement (such selling Lender’s obligations under the Credit Documents remaining unchanged) and the participant shall
not constitute a Lender hereunder, (ii) no such participant shall have, or be granted, rights to approve any amendment or waiver relating to this Credit Agreement or the other Credit Documents except to the extent any such amendment or waiver would
(A) reduce the principal of or rate of interest on or Fees in respect of any Loans in which the participant is participating, (B) postpone the date fixed for any payment of principal (including extension of the Termination Date or the date of any
mandatory prepayment), interest or Fees in which the participant is participating, or (C) increase the dollar amount of such participant’s participation over the dollar amount thereof in effect (it being understood and agreed that a waiver of
any Default or Event of Default or mandatory reduction in the participation amount (through a reduction in Commitments or otherwise) shall not constitute a change in the terms of the participation amount of any participant), and (iii)
sub-participations by the participant (except to an affiliate, parent company or affiliate of a parent company of the participant) shall be prohibited. In the case of any such participation, the participant shall not have any rights under this
Credit Agreement or the other Credit Documents (the participant’s rights against the selling Lender in respect of such participation to be those set forth in the participation agreement with such Lender creating such participation) and all

 

65 

 
amounts
payable by the Borrower hereunder shall be determined as if such Lender had not sold such participation, provided, however, that such participant shall be entitled to receive additional amounts under Sections 3.6, 3.7, 3.9, 3.10, 3.13 and
3.14 on the same basis as if it were a Lender (but in no event shall such additional amounts exceed the amount which would have been payable to the relevant Lender in the absence of such participation, and subject to limitations on such participant
comparable to those contained in Section 3.12 with respect to Requesting Lenders). 
 

	 	10.4	 	No Waiver; Remedies Cumulative. 

 
No failure or delay on the part of the Administrative Agent or any Lender in exercising any right, power or privilege hereunder or under
any other Credit Document and no course of dealing between the Administrative Agent or any Lender and the Borrower shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder or under any
other Credit Document preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder or thereunder. The rights and remedies provided herein are cumulative and not exclusive of any rights or remedies
which the Administrative Agent or any Lender would otherwise have. No notice to or demand on the Borrower shall entitle the Borrower to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of
the Administrative Agent or the Lenders to any other or further action in any circumstances without notice or demand. 
 

	 	10.5	 	Payment of Expenses, etc. 

 
The Borrower agrees to: (i) pay all reasonable out-of-pocket costs and expenses (A) of the Administrative Agent in connection with the
negotiation, preparation, execution and delivery and administration of this Credit Agreement and the other Credit Documents and the documents and instruments referred to herein and therein (including, without limitation, the reasonable fees and
expenses of Robinson Bradshaw & Hinson, P.A., special counsel to the Administrative Agent) and any amendment, waiver or consent relating hereto and thereto including, but not limited to, any such amendments, waivers or consents resulting from or
related to any work-out, renegotiation or restructure relating to the performance by the Borrower under this Credit Agreement, provided, however, the Borrower’s obligations under this subsection (A) shall be limited to those of
one law firm, and (B) of the Administrative Agent and the Lenders in connection with enforcement of the Credit Documents and the documents and instruments referred to therein (including, without limitation, in connection with any such enforcement,
the reasonable fees and disbursements of counsel for the Administrative Agent and each of the Lenders); (ii) pay and hold each of the Lenders harmless from and against any and all present and future stamp and other similar taxes with respect to the
foregoing matters and save each of the Lenders harmless from and against any and all liabilities with respect to or resulting from any delay or omission (other than to the extent attributable to such Lender) to pay such taxes; and (iii) reimburse
each Lender and Agent, and their respective officers, directors, employees, representatives, from and hold each of them harmless against any and all losses, liabilities, claims, damages or expenses incurred by any of them as a result of, or arising
out of, or in any way related to, or by reason of any investigation, litigation or other proceeding (whether or not any Lender is a party thereto) related to the entering into and/or performance of any Credit Document or the use of proceeds of any
Loans (including other extensions of credit) hereunder 
 

66 

 
or the consummation of any
other transactions contemplated in any Credit Document, including, without limitation, the reasonable fees and disbursements of counsel incurred in connection with any such investigation, litigation or other proceeding (but excluding any such
losses, liabilities, claims, damages or expenses to the extent incurred by reason of gross negligence or willful misconduct on the part of the Person to be indemnified). 
 

	 	10.6	 	Amendments, Waivers and Consents. 

 
Neither this Credit Agreement nor any other Credit Document nor any of the terms hereof or thereof may be amended, changed, waived,
discharged or terminated unless such amendment, change, waiver, discharge or termination is in writing entered into by, or approved in writing by, the Required Lenders and the Borrower, provided, however, that: 
 

	 	(a)	 	the consent of each Lender affected thereby is required to: 

 
(i) extend the final maturity of any Loan or any Commitment, or any portion thereof, or extend or waive any principal
amortization payment of any Loan, or any portion thereof, or waive application of any mandatory prepayment; 
 
(ii) reduce the rate or extend the time of payment of interest (other than as a result of waiving the applicability of any
increase in interest rates after the occurrence of an Event of Default or on account of a failure to deliver financial statements on a timely basis) thereon or Fees hereunder; 
 
(iii) reduce or waive the principal amount of any Loan; 
 
(iv) increase the Commitment of a Lender over
the amount thereof in effect (it being understood and agreed that a waiver of any Default or Event of Default or mandatory reduction in the Commitments shall not constitute a change in the terms of any Commitment of any Lender); 
 
(v) except as the result of or in connection
with a dissolution, merger or disposition of a Subsidiary permitted under Section 7.3, release the Borrower from its obligations under the Credit Documents; 
 
(vi) amend, modify or waive any provision of this Section 10.6 or Sections 3.6, 3.7, 3.8,
3.9, 3.10, 3.11, 3.13, 3.14, 3.15, 3.16, 8.1(a), 10.2, 10.3, 10.5, or 10.9; 
 
(vii) reduce any percentage specified in, or otherwise modify, the definition of Required Lenders; 
 
(viii) expand or otherwise add any new currency to the definition of Available Foreign Currency; or 
 
(ix) consent to the assignment or transfer by
the Borrower of any of its rights and obligations under (or in respect of) the Credit Documents except as permitted thereby. 
 

67 

 

	 	(b)	 	without the consent of the Administrative Agent, no provision of Section 9 may be amended; 

 
Notwithstanding the fact that the consent of all the Lenders is required in certain circumstances as set
forth above, (x) each Lender is entitled to vote as such Lender sees fit on any bankruptcy reorganization plan that affects the Loans, and each Lender acknowledges that the provisions of Section 1126(c) of the United States Bankruptcy Code
supersedes the unanimous consent provisions set forth herein and (y) the Required Lenders may consent to allow the Borrower to use cash collateral in the context of a bankruptcy or insolvency proceeding. 
 

	 	10.7	 	Counterparts. 

 
This Credit Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original,
but all of which shall constitute one and the same instrument. It shall not be necessary in making proof of this Credit Agreement to produce or account for more than one such counterpart. 
 

	 	10.8	 	Headings. 

 
The headings of the sections and subsections hereof are provided for convenience only and shall not in any way affect the meaning or
construction of any provision of this Credit Agreement. 
 

	 	10.9	 	Survival. 

 
All indemnities set forth herein, including, without limitation, in Sections 3.10, 3.13, 3.14, 9.7 or 10.5 shall survive the execution and
delivery of this Credit Agreement, the making of the Loans, the repayment of the Loans and other obligations under the Credit Documents and the termination of the Commitments hereunder, and all representations and warranties made by the Borrower
herein shall survive delivery of the Notes and the making of the Loans hereunder. 
 

	 	10.10	 	Governing Law; Submission to Jurisdiction; Venue. 

 

	 	(a)	 	THIS CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NORTH CAROLINA. Any legal action or proceeding with respect to this Credit Agreement or any other Credit Document shall be brought in the state or federal courts in the City of Charlotte, State
of North Carolina and, by execution and delivery of this Credit Agreement, the Borrower hereby irrevocably accepts for itself and in respect of its property, generally and unconditionally, the exclusive jurisdiction of such courts. The Borrower
further irrevocably consents to the service of process out of any of the aforementioned courts in any such action or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to it at the address set out for
notices pursuant to Section 10.1, such service to become effective five (5) days after such mailing. Nothing herein shall affect the right of the Administrative Agent to serve process in any other 

 

68 

 
manner
permitted by law or to commence legal proceedings or to otherwise proceed against the Borrower in any other jurisdiction. 
 

	 	(b)	 	The Borrower hereby irrevocably waives any objection which it may now or hereafter have to the laying of venue of any of the aforesaid actions or proceedings arising
out of or in connection with this Credit Agreement or any other Credit Document brought in the courts referred to in subsection (a) hereof and hereby further irrevocably waives and agrees not to plead or claim in any such court that any such action
or proceeding brought in any such court has been brought in an inconvenient forum. 

 

	 	(c)	 	TO THE EXTENT PERMITTED BY LAW, EACH OF THE ADMINISTRATIVE AGENT, THE LENDERS AND THE BORROWER HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS CREDIT AGREEMENT, ANY OF THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. 

 

	 	10.11	 	Confidentiality. 

 
Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that
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 Information and instructed to keep such 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) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Credit Agreement or the enforcement of rights hereunder; (e) subject to an agreement containing provisions
substantially the same as those of this Section 10.11, to (i) any assignee or participant, or any prospective assignee or participant, any of its rights or obligations under this Credit Agreement, subject to the terms of Section 10.3, or (ii) any
direct or indirect contractual counterparty or prospective counterparty (or such contractual counterparty’s or prospective counterparty’s professional advisor) to any credit derivative transaction relating to the Loans; (f) with the
consent of the Borrower; (g) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section 10.11 or (ii) becomes available to the Administrative Agent or any Lender on a nonconfidential basis from a
source other than the Borrower and its Subsidiaries; (h) to the National Association of Insurance Commissioners or any other similar organization or any nationally recognized rating agency that requires access to information about a Lender’s or
its Affiliates’ investment portfolio in connection with ratings issued with respect to such Lender or its Affiliates; or (i) credit reporting activities pursuant to credit reporting laws, rules and regulations. For the purposes of this Section,
“Information” means all information received from the Borrower or its Subsidiaries relating to the Borrower and its Subsidiaries or their business, other than any such information that is available to the Administrative Agent or any
Lender on a nonconfidential basis prior to disclosure by the Borrower and its Subsidiaries. 
 

69 

 

	 	10.12	 	Severability. 

 
If any provision of any of the Credit Documents is determined to be illegal, invalid or unenforceable, such provision shall be fully
severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or unenforceable provisions. 
 

	 	10.13	 	Entirety. 

 
This Credit Agreement together with the other Credit Documents represent the entire agreement of the parties hereto and thereto, and
supersede all prior agreements and understandings, oral or written, if any, including any commitment letters or correspondence relating to the Credit Documents or the transactions contemplated herein and therein. 
 

	 	10.14	 	Binding Effect; Termination. 

 

	 	(a)	 	This Credit Agreement shall become effective at such time on or after the Effective Date when it shall have been executed by the Borrower and the Administrative
Agent, and the Administrative Agent shall have received copies hereof (telefaxed or otherwise) which, when taken together, bear the signatures of each Lender, and thereafter this Credit Agreement shall be binding upon and inure to the benefit of the
Borrower, the Administrative Agent and each Lender and their respective successors and assigns. 

 

	 	(b)	 	The term of this Credit Agreement shall be until no Loans or any other amounts payable hereunder or under any of the other Credit Documents shall remain outstanding
and until all of the Commitments hereunder shall have expired or been terminated. 

 

	 	10.15	 	Judgment Currency. 

 
If, for the purposes of obtaining judgment in any court, it is necessary to convert a sum due hereunder or under any other Credit Document
in one currency into another currency, the rate of exchange used shall be that at which in accordance with normal banking procedures the Administrative Agent could purchase the first currency with such other currency on the Business Day preceding
that on which final judgment is given. The obligation of the Borrower in respect of any such sum due from it to the Administrative Agent or any Lender hereunder or under the other Credit Documents shall, notwithstanding any judgment in a currency
(the “Judgment Currency”) other than that in which such sum is denominated in accordance with the applicable provisions of this Credit Agreement (the “Agreement Currency”), be discharged only to the extent that on the Business
Day following receipt by the Administrative Agent or such Lender of any sum adjudged to be so due in the Judgment Currency, the Administrative Agent or such Lender may in accordance with normal banking procedures purchase the Agreement Currency with
the Judgment Currency. If the amount of the Agreement Currency so purchased is less than the sum originally due to the Administrative Agent or such Lender in the Agreement Currency, the Borrower agrees, as a separate obligation and notwithstanding
any such judgment, to indemnify the Administrative Agent or such Lender or the Person to whom such obligation was owing against such loss. If the amount of the Agreement Currency so purchased is greater than the sum originally due to the
Administrative Agent or such Lender in such currency, the 
 

70 

 
Administrative Agent or such
Lender agrees to return the amount of any excess to the Borrower (or to any other Person who may be entitled thereto under applicable law). 
 
[Remainder of Page Intentionally Left Blank] 
 
 

71 

IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Credit
Agreement to be duly executed and delivered as of the date first above written. 
 

	 BORROWER:
	 	 NUCOR CORPORATION,
 a Delaware corporation
	 	 
	
	 	 	 	 	 By:
	 	 /s/  Terry S. Lisenby

	 	 
	 	 	 	 	 Name:
	 	 Terry S. Lisenby
	 	 
	 	 	 	 	 Title:
	 	 Executive VP, CFO and Treasurer
	 	 

 

72 

 

	 LENDERS:
	 	 WACHOVIA BANK, NATIONAL ASSOCIATION,
 individually in its capacity as a Lender and in its capacity as Administrative Agent
	 	 
	
	 	 	 	 	 By:
	 	 /s/  Jason S. Miller

	 	 
	 	 	 	 	 Name:
	 	 Jason S. Miller
	 	 
	 	 	 	 	 Title:
	 	 Vice President
	 	 

 

73 

 

	 BANK OF AMERICA, N.A., individually in its capacity as a
 Lender and in its capacity as Syndication Agent

	
	 By:
	 	 /s/ Chitt Swamidasan

	 	

	 Name:
 Title:
	 	 Chitt Swamidasan
 Principal

 

74 

	 BANK ONE, NA, as a Lender

	
	 By:
	 	 /s/ Louis B. Virgo

	 	

	 Name:
 Title:
	 	 Louis B. Virgo
 Assistant Vice President

 
 

75 

	 CIBC, INC., as a Lender

	
	 By:
	 	 /s/ Lindsay Gordon

	 	

	 Name:
 Title:
	 	 Lindsay Gordon
 Executive Director
 CIBC World Markets Corp. As Agent

 
 
 

76 

 

	 THE BANK OF NEW YORK, as a Lender

	
	 By:
	 	 /s/ David C. Siegel

	 	

	 Name:
 Title:
	 	 David C. Siegel
 Vice President

 
 

77 

 

	 THE NORTHERN TRUST COMPANY, as a Lender

	
	 By:
	 	 /s/ Stephen Bowman

	 	

	 Name:
 Title:
	 	 Stephen Bowman
 Senior Vice President

 

78Exhibit 10(a)

                       PAK MAIL CENTERS OF AMERICA, INC.

                               FRANCHISE AGREEMENT

                                            Franchisee:
                                                        -----------------------
                                            Date:
                                                  -----------------------------
                                            Franchised Location:
                                                                 --------------

                                            -----------------------------------

<PAGE>

                        PAK MAIL CENTERS OF AMERICA, INC.
                               FRANCHISE AGREEMENT
                                TABLE OF CONTENTS

1.       PURPOSE...............................................................1

2.       GRANT OF FRANCHISE....................................................1
         2.1.     Grant of Franchise...........................................1
         2.2.     Scope of Franchise Operation.................................1

3.       FRANCHISED LOCATION AND TERRITORIAL RIGHTS............................2
         3.1.     Franchised Location..........................................2
         3.2.     Protected Territory..........................................2
         3.3.     Limitation on Franchise Rights...............................2
         3.4.     Franchisor's Reservation of Rights...........................2

4.       INITIAL FRANCHISE FEE.................................................2
         4.1.     Initial Franchise Fee........................................2

5.       DEVELOPMENT OF FRANCHISED LOCATION....................................3
         5.1.     Approval of Franchised Location..............................3
         5.2.     Approval of Lease............................................3
         5.3.     Conversion and Design........................................3
         5.4.     Signs........................................................4
         5.5.     Equipment....................................................4
         5.6.     Permits and Licenses.........................................4
         5.7.     Commencement of Operations...................................5

6.       TRAINING..............................................................5
         6.1.     Initial Training Program.....................................5
         6.2.     Length of Training...........................................5
         6.3.     Additional Training..........................................5

7.       DEVELOPMENT ASSISTANCE................................................6
         7.1.     Franchisor's Development Assistance..........................6

8.       OPERATIONS MANUAL.....................................................6
         8.1.     Operations Manual............................................6
         8.2.     Confidentiality of Operations Manual Contents................7
         8.3.     Changes to Operations Manual.................................7

9.       OPERATING ASSISTANCE..................................................7
         9.1.     Franchisor's Services........................................7
         9.2.     Additional Franchisor Services...............................8

10.      FRANCHISEE'S OPERATIONAL COVENANTS....................................8
         10.1.    Business Operations..........................................8

11.      ROYALTIES.............................................................9
         11.1.    Monthly Royalty..............................................9
         11.2.    Royalty Based Revenues......................................10
         11.3.    Royalty Payments............................................10
         11.4.    Application of Payments.....................................10

12.      ADVERTISING..........................................................11
         12.1.    Approval of Advertising.....................................11

<PAGE>

         12.2.    Initial Marketing Materials.................................11
         12.3.    Advertising Contribution....................................11
         12.4.    Regional Advertising Programs...............................12
         12.5.    Electronic Advertising......................................13

13.      QUALITY CONTROL......................................................13
         13.1.    Compliance with Operations Manual...........................13
         13.2.    Standards and Specifications................................13
         13.3.    Inspections.................................................14
         13.4.    Restrictions on Services and Products.......................14
         13.5.    Approved Suppliers..........................................14
         13.6.    Request to Approve Supplier.................................14
         13.7.    Shopping Service............................................14

14.      MARKS, TRADE NAMES AND PROPRIETARY INTERESTS.........................15
         14.1.    Marks.......................................................15
         14.2.    No Use of Other Marks.......................................15
         14.3.    System......................................................15
         14.4.    Mark Infringement...........................................15
         14.5.    Franchisee's Business Name..................................16
         14.6.    Change of Marks.............................................16

15.      REPORTS, RECORDS AND FINANCIAL STATEMENTS............................16
         15.1.    Franchisee Reports..........................................16
         15.2.    Verification................................................17
         15.3.    Books and Records...........................................17
         15.4.    Audit of Books and Records..................................17

16.      TRANSFER.............................................................18
         16.1.    Transfer by Franchisee......................................18
         16.2.    Pre-Conditions to Franchisee's Transfer.....................18
         16.3.    Franchisor's Approval of Transfer...........................19
         16.4.    Right of First Refusal......................................19
         16.5.    Specific Types of Transfers.................................20
         16.6.    Assignment by the Franchisor................................20
         16.7.    Franchisee's Death or Disability............................20

17.      TERM AND EXPIRATION..................................................20
         17.1.    Term........................................................20
         17.2.    Continuation................................................21
         17.3.    Rights Upon Expiration......................................21
         17.4.    Exercise of Option for Successor Franchise..................21
         17.5.    Conditions of Refusal.......................................21

18.      DEFAULT AND TERMINATION..............................................22
         18.1.    Termination by Franchisee...................................22
         18.2.    Termination by Franchisor - Effective Upon Notice...........22
         18.3.    Termination by Franchisor - Thirty Days Notice..............23
         18.4.    Right to Purchase...........................................24
         18.5.    Obligations of Franchisee Upon Termination or Expiration....24
         18.6.    Acknowledgement.............................................26
         18.7.    State and Federal Law.......................................26

19.      BUSINESS RELATIONSHIP................................................26

<PAGE>

         19.1.    Independent Businesspersons.................................26
         19.2.    Payment of Third Party Obligations..........................26
         19.3.    Indemnification.............................................26

20.      RESTRICTIVE COVENANTS................................................27
         20.1.    Non-Competition During Term.................................27
         20.2.    Post-Termination Covenant Not to Compete....................27
         20.3.    Confidentiality of Proprietary Information..................28
         20.4.    Confidentiality Agreement...................................28

21.      INSURANCE............................................................28
         21.1.    Insurance Coverage..........................................28
         21.2.    Proof of Insurance Coverage.................................28

22.      MISCELLANEOUS PROVISIONS.............................................29
         22.1.    Governing Law/Consent to Venue and Jurisdiction.............29
         22.2.    Modification................................................29
         22.3.    Entire Agreement............................................29
         22.4.    Delegation by the Franchisor................................29
         22.5.    Effective Date..............................................30
         22.6.    Review of Agreement.........................................30
         22.7.    Attorneys' Fees.............................................30
         22.8.    Injunctive Relief...........................................30
         22.9.    Payment of Taxes............................................30
         22.10.   No Waiver...................................................30
         22.11.   No Right to Set Off.........................................30
         22.12.   Invalidity..................................................31
         22.13.   Notices.....................................................31
         22.14.   Cumulative Rights...........................................31
         22.15.   Acknowledgement.............................................31

                                    EXHIBITS
                                    --------

I.                Addendum to Franchise Agreement - Location Approval

II.               Guaranty and Assumption of Franchisee's Obligations

III.              Statement of Ownership

IV.               Authorization Agreement for Prearranged Payments

V.                Build-Out Program Addendum

VI.               Amendment to Franchise Agreement - Renewal

VII.              Amendment to Franchise Agreement - Transfer

<PAGE>

                        PAK MAIL CENTERS OF AMERICA, INC.
                        ---------------------------------
                               FRANCHISE AGREEMENT
                               -------------------

     THIS AGREEMENT (the "Agreement") is made this ____ day of ________, 20___,
by and between PAK MAIL CENTERS OF AMERICA, INC., a Colorado corporation,
located at 7173 South Havana Street, Suite 600, Englewood, Colorado 80112 (the
"Franchisor") and _________________________________________________, located at
____________________________________________________________________________
(the "Franchisee"), who, on the basis of the following understandings and
agreements, agree as follows:

                                   1. PURPOSE

     1.1. The Franchisor has developed methods for establishing, operating and
promoting stores offering a variety of packaging, shipping, crating, freight
forwarding, mailing, communications and information services ("PAK MAIL Centers"
or "Centers") which use the service mark "PAK MAIL" and related trade names and
trademarks ("Marks") and the Franchisor's proprietary methods of doing business
("System").

     1.2. The Franchisor grants the right to others to develop and operate a PAK
MAIL Center, under the Marks and pursuant to the System.

     1.3. The Franchisee desires to establish a PAK MAIL Center at a location
identified herein or to be later identified, and the Franchisor desires to grant
the Franchisee the right to operate a PAK MAIL Center at such location under the
terms and conditions which are contained in this Agreement.

                             2. GRANT OF FRANCHISE

2.1. Grant of Franchise.
     -------------------

     The Franchisor grants to the Franchisee, and the Franchisee accepts from
the Franchisor, the right to use the Marks and System in connection with the
establishment and operation of a PAK MAIL Center, at the location described in
Article 3 of this Agreement. The Franchisee agrees to use the Marks and System,
as they may be changed, improved, and further developed by the Franchisor from
time to time, only in accordance with the terms and conditions of this
Agreement.

2.2. Scope of Franchise Operation.
     -----------------------------

     The Franchisee agrees at all times to faithfully, honestly and diligently
perform the Franchisee's obligations hereunder, and to continuously use best
efforts to promote the PAK MAIL Center. The Franchisee agrees to utilize the
Marks and System to operate all aspects of the business franchised hereunder in
accordance with the methods and systems developed and prescribed from time to
time by the Franchisor, all of which are a part of the System. The Franchisee's
PAK MAIL Center shall offer all products and services as the Franchisor shall
designate and shall be restricted from offering or selling any products and
services not previously approved by the Franchisor in writing.

<PAGE>

                  3. FRANCHISED LOCATION AND TERRITORIAL RIGHTS

3.1. Franchised Location.
     --------------------

     The Franchisee is granted the right and franchise to own and operate a PAK
MAIL Center at the address and location which shall be set forth in Exhibit I,
attached hereto ("Franchised Location"). If, at the time of execution of this
Agreement, the Franchised Location cannot be designated as a specific address
because a location has not been selected and approved, then the Franchisee shall
promptly take steps to choose and acquire a location for its PAK MAIL Center
within the Designated Area, set forth in Exhibit I. In such circumstances, the
Franchisee shall, within 90 days after the execution of this Agreement, select
and propose to the Franchisor for the Franchisor's prior approval a specific
location for the Franchised Location which, once approved by the Franchisor,
shall hereinafter be set forth in the rider to Exhibit I.

3.2. Protected Territory.
     --------------------

     So long as the Franchisee is in compliance with this Agreement, the
Franchisor shall not establish or license another person or entity to establish
a PAK MAIL Center within a certain geographic area as set forth in Exhibit I
("Protected Territory").

3.3. Limitation on Franchise Rights.
     -------------------------------

     The rights that are granted to the Franchisee are for the specific
Franchised Location and Protected Territory and cannot be transferred to an
alternative Franchised Location or Protected Territory, or any other location,
without the prior written approval of the Franchisor, which approval shall not
be unreasonably withheld. The Franchisee shall not operate another Center or
offer services which are part of the System at any site other than the
Franchised Location without the Franchisor's prior written approval, which
approval can be withheld for any reason, in the Franchisor's sole discretion.

3.4. Franchisor's Reservation of Rights.
     -----------------------------------

     The Franchisee acknowledges that its franchise rights as granted are
non-exclusive and that the Franchisor retains the rights, among others: (1) to
use, and to license others to use, the Marks and System in connection with the
operation of a PAK MAIL Center, at any location other than in the Protected
Territory; (2) to use the Marks to identify services and products other than
those which the Franchisee sells, to identify promotional and marketing efforts
and related items, and to identify services and products similar to those which
the Franchisee sells, made available through alternative channels of
distribution, at any location; and (3) to use and license the use of other
proprietary marks or methods in connection with the sale of products and
services similar to those which the Franchisee will sell, whether in alternative
channels of distribution or in connection with the operation of packaging and
mailing businesses at any location, which businesses are the same as, or similar
to, or different from PAK MAIL Centers, on any terms and conditions as the
Franchisor deems advisable.

                            4. INITIAL FRANCHISE FEE

4.1. Initial Franchise Fee.
     ----------------------

     In consideration for the right to develop and operate one PAK MAIL Center,
the Franchisee agrees to pay to the Franchisor an initial franchise fee of
$28,950 as of the date of execution of this Agreement. The Franchisee

                                       2

<PAGE>

acknowledges and agrees that the initial franchise fee represents payment for
the initial grant of the rights to use the Marks and System, that the Franchisor
has earned the initial franchise fee upon receipt thereof and that the fee is
under no circumstances refundable to the Franchisee after it is paid, unless
otherwise specifically set forth in this Agreement.

                     5. DEVELOPMENT OF FRANCHISED LOCATION

5.1. Approval of Franchised Location.
     --------------------------------

     The Franchisee shall follow the Franchisor's site selection procedures in
locating a Franchised Location for the PAK MAIL Center. The Franchisee shall
seek the Franchisor's approval of any site proposed as a Franchised Location, by
submitting a complete site submittal package, including demographics and other
materials requested by the Franchisor, containing all information reasonably
required by the Franchisor to assess a proposed Franchised Location. The
Franchisor will not unreasonably withhold approval of a proposed site that meets
all of the Franchisor's site selection criteria.

5.2. Approval of Lease.
     ------------------

     The Franchisee shall obtain the Franchisor's prior written approval before
executing any lease or purchase agreement for the Franchised Location. Any lease
for the Franchised Location shall, at the option of the Franchisor, contain a
provision: (1) allowing for assignment of the lease to the Franchisor in the
event that this Agreement is terminated or not renewed for any reason; (2)
requiring the landlord to provide notice of default to the Franchisor prior to
termination and giving the Franchisor the right to cure any default by the
Franchisee and assume the lease; (3) allowing the Franchisor to remove the Marks
from the Franchised Location upon termination or expiration of this Agreement;
(4) granting the Franchisor the option to assume the lease upon a default by
Franchisee under this Agreement, if the Franchisee is adjudicated a bankrupt or
if the Franchisee makes an assignment for the benefit of creditors; and (5)
providing the Franchisor with the right, exercisable upon and as a condition of
the approval of the Franchised Location, to execute the lease agreement or other
document providing entitlement to the use of the Franchised Location in its own
name or jointly with the Franchisee as lessee and, upon the exercise of such
option, the Franchisor shall provide the Franchisee with the right to use the
premises as its sublessee, assignee, or other similar capacity upon the same
terms and conditions as obtained by the Franchisor. The lease is hereby
collaterally assigned to the Franchisor as security for the Franchisee's timely
performance of all obligations under this Agreement and the lease for the
Franchised Location. The Franchisee shall obtain the lessor's consent to such
collateral assignment. The Franchisee shall deliver a copy of the signed lease
for the Franchised Location to the Franchisor within 15 days of its execution.
The Franchisee acknowledges that approval of a lease for the Franchised Location
by the Franchisor does not constitute a recommendation, endorsement or guarantee
by the Franchisor of the suitability or profitability of the location or the
lease and the Franchisee should take all steps necessary to ascertain whether
such location and lease are acceptable to the Franchisee.

5.3. Conversion and Design.
     ----------------------

     The Franchisee acknowledges that the layout, design, decoration and color
scheme of PAK MAIL Centers are an integral part of the Franchisor's proprietary
System and accordingly, the Franchisee shall convert, design and decorate the
Franchised Location in accordance with the Franchisor's plans and specifications
and with the assistance of contractors and suppliers designated by or otherwise
approved by the Franchisor. The Franchisee shall obtain the Franchisor's written
consent to any conversion, design or decoration of the premises before
remodeling or decorating begins, recognizing that any related costs are the
Franchisee's sole responsibility. It shall be the Franchisee's responsibility to
have prepared all required construction plans and specifications to suit the
shape and dimensions of the Franchised Location and to insure compliance with
applicable laws and the lease.

                                       3

<PAGE>

5.4. Signs.
     ------

     The Franchisee shall purchase or otherwise obtain for use at the Franchised
Location and in connection with the PAK MAIL Center signs which comply with the
standards and specifications of the Franchisor as set forth in the Operations
Manual, as that term is defined in Section 8.1. It is the Franchisee's sole
responsibility to insure that any signs comply with applicable local ordinances,
mall regulations, building codes and zoning regulations. Any modifications to
the Franchisor's standards and specifications for signs which must be made due
to local ordinances, codes or regulations shall be submitted to the Franchisor
for prior written approval. The Franchisee acknowledges the Marks, or any other
name, symbol or identifying marks on any signs shall only be used in accordance
with the Franchisor's standards and specifications and only with the prior
written approval of the Franchisor.

5.5. Equipment.
     ----------

     The Franchisee shall purchase or otherwise obtain for use at the Franchised
Location equipment of a type and in an amount which complies with the standards
and specifications of the Franchisor. The Franchisee acknowledges that the type,
quality, configuration, capability and/or performance of the equipment are all
standards and specifications which are a part of the System and therefore such
equipment must be purchased, leased, or otherwise obtained in accordance with
the Franchisor's standards and specifications and only from sources approved by
the Franchisor. The Franchisee shall equip the Center with computerized
point-of-sale systems ("POS System"), computer hardware and software, copiers,
printers, facsimile machines and other designated equipment as are consistent
with the standards and specifications of the Franchisor and, in the case of the
POS System and related software, these items must be obtained from the
Franchisor or the Franchisor's designated or approved suppliers. The Franchisee
shall also obtain and maintain an account with an internet service provider
which meets the Franchisor's standards and specifications.

5.6. Permits and Licenses.
     ---------------------

     The Franchisee agrees to obtain all such permits and certifications as may
be required for the lawful construction and operation of the PAK MAIL Center
together with all certifications from government authorities having jurisdiction
over the site that all requirements for construction and operation have been
met, including without limitation, zoning, access, sign, health, safety
requirements, building and other required construction permits, licenses to do
business and fictitious name registrations, sales tax permits, health and
sanitation permits and ratings and fire clearances. The Franchisee shall comply
with all federal, state and local laws, codes and regulations, including the
applicable provisions of the Americans with Disabilities Act, regarding the
construction, design and operation of the PAK MAIL Center by the Franchisee. The
Franchisee agrees to obtain all customary contractors' sworn statements and
partial and final lien waivers for construction, remodeling, decorating and
installation of equipment at the Franchised Location. Copies of all subsequent
inspection reports, warnings, certificates and ratings issued by any
governmental entity during the term of this Agreement in connection with the
conduct of the PAK MAIL Center which indicates the Franchisee's failure to meet
or maintain the highest governmental standards, or less than full compliance by
the Franchisee with any applicable law, rule or regulation, shall be forwarded
to the Franchisor within five days of the Franchisee's receipt thereof.

                                       4

<PAGE>

5.7. Commencement of Operations.
     ---------------------------

     Unless otherwise agreed to in writing by the Franchisor and the Franchisee,
the Franchisee has 180 days from the date of this Agreement within which to: (1)
secure all necessary financing for the Center; (2) complete the initial training
program described in Section 6.1 of this Agreement; (3) select, lease and
develop the Franchised Location; (4) purchase an opening inventory of materials
and supplies; (5) obtain and provide evidence of insurance as described in
Section 21.1 below; and (6) commence operation of the PAK MAIL Center. The
Franchisor will extend the time in which the Franchisee has to commence
operations for a reasonable period of time in the event factors beyond the
Franchisee's reasonable control prevent the Franchisee from meeting this
development schedule, so long as the Franchisee has made reasonable and
continuing efforts to comply with such development obligations and the
Franchisee requests, in writing, an extension of time in which to have its PAK
MAIL Center established before such development period lapses. The Franchisee
shall obtain the Franchisor's approval prior to opening the Center for business.

                                  6. TRAINING

6.1. Initial Training Program.
     -------------------------

     The Franchisee or, if the Franchisee is not an individual, the person
designated by the Franchisee to assume primary responsibility for the management
of the PAK MAIL Center ("Principal Operator"), is required to attend and
successfully complete the initial training program which is offered by the
Franchisor at one of the Franchisor's designated training facilities. Up to two
individuals are eligible to participate in the Franchisor's initial training
program without charge of a tuition or fee. The Franchisee shall be responsible
for any and all traveling and living expenses incurred in connection with
attendance at the training program. At least one individual must successfully
complete the initial training program prior to the Franchisee's commencement of
operation of its PAK MAIL Center.

6.2. Length of Training.
     -------------------

     The initial training program shall consist of a total of 14 days, nine of
which shall be classroom instruction at a location designated by the Franchisor,
two of which shall be on-the-job training at a Center designated by the
Franchisor, and three of which shall be on-site at the Franchised Location at or
around the time the Center opens for business. The Franchisee, and if
applicable, the Principal Operator, shall attend the on-the-job training at the
designated Center and the on-site training at the Franchised Location. The
Franchisor reserves the right to waive a portion of the training program or
alter the training schedule, if in the Franchisor's sole discretion, the
Franchisee or Principal Operator has sufficient prior experience or training.

6.3. Additional Training.
     --------------------

     From time to time, the Franchisor may present seminars, conventions or
continuing development programs or conduct meetings for the benefit of the
Franchisee. The Franchisee or its Principal Operator shall be required to attend
any ongoing mandatory seminars, conventions, programs or meetings as may be
offered by the Franchisor. The Franchisor shall give the Franchisee at least 30
days prior written notice of any ongoing seminar, convention or program which is
deemed mandatory. The Franchisor shall not require that the Franchisee attend
any ongoing training more often than once a year. All mandatory training will be
offered without charge of a tuition or fee; provided, however, the Franchisee
will be responsible for all traveling and living expenses which are associated
with attendance at the same.

                                       5

<PAGE>

                           7. DEVELOPMENT ASSISTANCE

7.1. Franchisor's Development Assistance.
     ------------------------------------

     The Franchisor shall provide the Franchisee with assistance in the initial
establishment of the PAK MAIL Center as follows:

          a. Provision of the initial training program to be conducted at the
     Franchisor's designated training facilities or at another location
     designated by the Franchisor, as described in Article 6 above.

          b. Provision of written specifications for a Franchised Location which
     shall include, without limitation, specifications for space requirements,
     build out and the demographics and character of the surrounding market
     area. In addition, if this Agreement governs the Franchisee's first PAK
     MAIL Center, the Franchisor shall send one representative to the proposed
     Franchised Location for up to one day to evaluate and, if possible, approve
     a site for the Franchised Location. The Franchisee acknowledges that the
     Franchisor shall have no other obligation to provide assistance in the
     selection and approval of a Franchised Location other than the provision of
     such written specifications and approval or disapproval of a proposed
     Franchised Location, which approval or disapproval shall be based on
     information submitted to the Franchisor in a form sufficient to assess the
     proposed location as may be reasonably required by the Franchisor.

          c. Directives regarding the required conversion, design and decoration
     of the PAK MAIL Center premises, plus specifications concerning signs,
     decor, color, equipment, machines, uniforms and equipment.

          d. Information regarding the selection of suppliers of equipment,
     items and materials used and inventory and services offered for sale in
     connection with the PAK MAIL Center. After execution of this Agreement, the
     Franchisor will provide the Franchisee with a list of approved suppliers,
     if any, of such equipment, items, materials, inventory and services and, if
     available, a description of any national or central purchase and supply
     agreements offered by such approved suppliers for the benefit of PAK MAIL
     franchisees.

          e. Provision of an operations manual in accordance with Section 8.1
     below.

          f. The Franchisor will make available to the Franchisee at or around
     the commencement of operations of the Franchisee's PAK MAIL Center a
     representative to be present for three days during the initial operation of
     the Franchisee's PAK MAIL Center. The representative will assist the
     Franchisee's employees in the initial operation of the Center at a time
     scheduled by the Franchisor, unless in the Franchisor's determination, the
     Franchisee or the Principal Operator have had sufficient prior training or
     experience.

                              8. OPERATIONS MANUAL

8.1. Operations Manual.
     ------------------

     The Franchisor agrees to provide to the Franchisee one or more manuals,
technical bulletins, or other written materials (collectively referred to as
"Operations Manual") covering certain standards and specifications for
packaging, shipping, crating, freight forwarding, mailing, communications and
information products and services and other operating and marketing techniques
for the PAK MAIL Center. The Franchisee agrees that it shall comply with the

                                       6

<PAGE>

Operations Manual as an essential aspect of its obligations under this Agreement
and failure by the Franchisee to substantially comply with the Operations Manual
may be considered by the Franchisor to be a breach of this Agreement.

8.2. Confidentiality of Operations Manual Contents.
     ----------------------------------------------

     The Franchisee agrees to use the Marks and System only as specified in the
Operations Manual. The Operations Manual is the sole property of the Franchisor
and shall be used by the Franchisee only during the term of this Agreement and
in strict accordance with the terms and conditions hereof. The Franchisee shall
not duplicate the Operations Manual nor disclose its contents to persons other
than its employees or officers who have signed a confidentiality and
noncompetition agreement in a form approved by the Franchisor. The Franchisee
shall return the Operations Manual to the Franchisor upon the expiration,
termination or assignment of this Agreement.

8.3. Changes to Operations Manual.
     -----------------------------

     The Franchisor reserves the right to revise the Operations Manual from time
to time as it deems necessary to update or change operating and marketing
techniques or standards and specifications. The Franchisee, upon receipt of any
updated information, shall update its copy of the Operations Manual as
instructed by the Franchisor and shall conform its operations with the updated
provisions within a reasonable time thereafter. The Franchisee acknowledges that
a master copy of the Operations Manual maintained by the Franchisor at its
principal office shall be controlling in the event of a dispute relative to the
content of any Operations Manual.

                            9. OPERATING ASSISTANCE

9.1. Franchisor's Services.
     ----------------------

     The Franchisor agrees that, during the Franchisee's operation of the PAK
MAIL Center, the Franchisor shall make available to the Franchisee the following
services:

          a. Upon the reasonable request of the Franchisee, consultation by
     telephone, facsimile or electronic mail, regarding the continued operation
     and management of a PAK MAIL Center and advice regarding the packaging and
     shipping services, quality control, inventory issues, customer and supplier
     relations issues and similar advice.

          b. Access to advertising and promotional materials as may be developed
     by the Franchisor, the cost of which may be passed on to the Franchisee, at
     the Franchisor's option.

          c. On-going updates of information and programs regarding the
     packaging and shipping industry, the competition, the PAK MAIL concept and
     the System, including, without limitation, information about special or new
     products which may be developed and made available to PAK MAIL franchisees
     as a part of the System.

          d. The Franchisor shall make the initial training program available to
     replacement or additional Principal Operators during the term of this
     Agreement. The Franchisee shall be responsible for all travel and living
     expenses incurred by its personnel during the training program. The
     availability of the training programs shall be subject to space
     considerations and prior commitments to new PAK MAIL franchisees.

                                       7

<PAGE>

9.2.   Additional Franchisor Services.
       -------------------------------

       Although not obligated to do so, the Franchisor may make its employees or
designated agents available to the Franchisee for on-site advice and assistance
in connection with the on-going operation of the PAK MAIL Center governed by
this Agreement.

                     10. FRANCHISEE'S OPERATIONAL COVENANTS

10.1.  Business Operations.
       --------------------

       The Franchisee acknowledges that it is solely responsible for the
successful operation of its PAK MAIL Center and that the continued successful
operation thereof is, in part, dependent upon the Franchisee's compliance with
this Agreement and the Operations Manual. In addition to all other obligations
contained in this Agreement and in the Operations Manual, the Franchisee
covenants that:

              a. The Franchisee shall maintain clean, efficient and high quality
       PAK MAIL Center operations and shall operate the business in accordance
       with the Operations Manual and in such a manner as not to detract from or
       adversely reflect upon the name and reputation of the Franchisor and the
       goodwill associated with the PAK MAIL name and Marks.

              b. The Franchisee will conduct itself and operate its PAK MAIL
       Center in compliance with all applicable laws, health department
       regulations and other ordinances and in such a manner so as to promote a
       good public image in the business community. In connection therewith, the
       Franchisee will be solely and fully responsible for obtaining any and all
       licenses to carry on business at the PAK MAIL Center.

              c. The Franchisee acknowledges that proper management of the PAK
       MAIL Center is important and shall insure that the Franchisee or a
       designated Principal Operator who has completed the Franchisor's initial
       training program be responsible for the management of the PAK MAIL
       Center.

              d. The Franchisee shall offer only products and services through
       its Center which meet or exceed the minimum standards and specifications
       established by the Franchisor more fully described in the Operations
       Manual. The Franchisee shall offer all types of products and services as
       from time to time may be prescribed by the Franchisor and shall refrain
       from offering any other types of products or services, or operating or
       engaging in any other type of business or profession, from or through the
       PAK MAIL Center.

              e. The Franchisee will pay on a timely basis all amounts due and
       owing to the Franchisor pursuant to any separate agreements between the
       Franchisee and the Franchisor and all amounts due and owing by the
       Franchisee to all third parties, including national vendors and taxing
       authorities, with whom the Franchisee does business at or through the
       Center. In connection with any amounts due and owing by the Franchisee to
       third parties, the Franchisee expressly acknowledges that a default by
       the Franchisee with respect to such indebtedness may be considered a
       default hereunder and the Franchisor may avail itself of all remedies
       provided for herein in the event of default.

              f. The Franchisee shall comply with all agreements with third
       parties related to the PAK MAIL Center including, in particular, all
       provisions of any premises lease and any equipment leases.

                                       8

<PAGE>

              g. The Franchisee and all employees of the Franchisee shall
       present a professional appearance, as described in the Operations Manual,
       and shall render competent and courteous service to customers of the PAK
       MAIL Center while working at the Franchised Location. The Franchisee is
       required, at the Franchisee's expense, to purchase specified wearing
       apparel from suppliers approved by the Franchisor. All Principal
       Operators, employees of the Franchisee, the Franchisee and its owners,
       shall wear the specified uniform at all times while working at the
       Franchised Location. The Franchisor has the right, in its sole and
       absolute discretion, to change or modify such dress code guidelines.

              h. The Franchisee agrees to renovate, refurbish, remodel or
       replace, at its own expense, the real and personal property and
       equipment, including but not limited to, computer hardware, software and
       the POS System, used in the operation of the PAK MAIL Center, when
       reasonably required by the Franchisor in order to comply with the image,
       standards of operation and performance capability established by the
       Franchisor from time to time. If the Franchisor changes its image or
       standards of operation, it shall give the Franchisee a reasonable period
       of time within which to comply with such changes.

              i. The Franchisee shall be responsible for training all of its
       employees who work in any capacity in the PAK MAIL Center and shall be
       fully responsible for all employees' compliance with the operational
       standards which are part of the System. The Franchisee must conduct its
       employee training in the manner and according to the standards as
       prescribed in the Operations Manual. Any employee who does not
       satisfactorily complete the training shall not work in any capacity in
       the Franchisee's PAK MAIL Center.

              j. The Franchisee shall at all times during the term of this
       Agreement own and control the PAK MAIL Center authorized hereunder. Upon
       request of the Franchisor, the Franchisee shall promptly provide
       satisfactory proof of such ownership to the Franchisor. The Franchisee
       represents that the Statement of Ownership, attached hereto as Exhibit
       III and by this reference incorporated herein, is true, complete,
       accurate and not misleading, and, in accordance with the information
       contained in the Statement of Ownership, the controlling ownership of the
       PAK MAIL Center is held by the Franchisee. The Franchisee shall promptly
       provide the Franchisor with a written notification if the information
       contained in the Statement of Ownership changes at any time during the
       term of this Agreement and shall comply with the applicable transfer
       provisions contained in Article 16 herein. In addition, if the Franchisee
       is an entity, all of the owners of the Franchisee shall sign the Personal
       Guaranty attached hereto as Exhibit II.

              k. The Franchisee shall at all times during the term of this
       Agreement keep its PAK MAIL Center open during the business hours as may
       be designated by the Franchisor from time to time in the Operations
       Manual and shall maintain sufficient supplies of products and employ
       adequate personnel at all times so as to operate the Center at its
       maximum capacity and efficiency.

                                 11. ROYALTIES

11.1.  Monthly Royalty.
       ----------------

       The Franchisee agrees to pay to the Franchisor a monthly royalty
("Royalty") equal to 5% of the total amount of its "Royalty Based Revenues"
(defined in Section 11.2 below) for the first $200,000 of the Center's Royalty
Based Revenues, 4 1/2% for the next $50,000 of the Center's Royalty Based

                                       9

<PAGE>

Revenues, 4% for the next $50,000 of the Center's Royalty Based Revenues, 3 1/2%
for the next $50,000 of the Center's Royalty Based Revenues, and 3% for all
subsequent Royalty Based Revenues of the Center received in that calendar year.

11.2.  Royalty Based Revenues.
       -----------------------

       "Royalty Based Revenues" shall mean and include the aggregate amount of
all sales of services, products or merchandise of every kind or nature
performed, sold from, at or in connection with the operation of the Center or
arising out of the operation or conduct of business by the Center or, if the
Franchisee is an entity, arising out of the operation or conduct of any business
by such entity, including sales made at or away from the Center, whether for
cash or credit, but excluding all: (i) federal, state or municipal sales or
service taxes collected from customers and paid to the appropriate taxing
authority; (ii) income generated from the sale of postage stamps; (iii) key
deposits; and (iv) other exclusions as may be authorized in writing by the
Franchisor.

11.3.  Royalty Payments.
       -----------------

       Royalty payments shall be made monthly and sent to the Franchisor,
postmarked or otherwise transmitted in a manner directed by the Franchisor, no
later than the 10th day of each month or such other day which the Franchisor
will designate from time to time ("Due Date") based on Royalty Based Revenues
for the immediately preceding month. At the Franchisor's request and in no event
later than 30 days prior to the opening of the Center, the Franchisee shall
execute an Authorization Agreement for Prearranged Payments of delinquent
Royalties, Advertising Contributions and other past due amounts owed by the
Franchisee to the Franchisor arising from or relating to this Agreement by
electronic transfer of funds from the Franchisee's bank account to the
Franchisor's bank account, in the form attached to this Agreement as Exhibit IV.
The Franchisor reserves the right, upon 60 days prior written notice to the
Franchisee, to require that the Franchisee execute an Authorization Agreement
for Prearranged Payments of all Royalties and Advertising Contributions by
electronic transfer of funds. No later than the Due Date of each month, the
Franchisee shall report to the Franchisor by electronic means or in written
form, as may be reasonably directed by the Franchisor, in a manner more fully
described in Section 15.1 below, with such information and pursuant to such
standard transmittal procedures regarding the Franchisee's Royalty Based
Revenues and such additional information as may be requested by the Franchisor.
The Franchisor reserves the right to require Royalty payments be made on a
weekly or bi-weekly basis if the Franchisee does not timely or fully submit the
required payments or reports. The Franchisor shall have the right to verify such
Royalty payments from time to time as it deems necessary, in any reasonable
manner. In the event that the Franchisee fails to have sufficient funds in its
account or otherwise fails to pay any Royalties as of the Due Date, the
Franchisee shall owe, in addition to such Royalties, interest after the Due Date
at the highest applicable legal rate for open account business credit, not to
exceed 1 1/2% per month. The Franchisee acknowledges that this Section 11.3
shall not constitute the Franchisor's or its affiliates' agreement to accept
such payments after they are due or a commitment to extend credit to or
otherwise finance operation of the Center. In no event shall the Franchisee be
required to pay interest at a rate greater than the maximum interest rate
permitted by applicable law.

11.4.  Application of Payments.
       ------------------------

       Notwithstanding any designation by the Franchisee, the Franchisor shall
have sole discretion to apply any payments by the Franchisee, and any credits
received by the Franchisor on the Franchisee's behalf from third party vendors,
to any of Franchisee's past due indebtedness to Franchisor for Royalties,
Advertising Contributions, purchases from the Franchisor or its affiliates,
interest or any other indebtedness. The Franchisee acknowledges that the
Franchisor has the right to set-off any amounts the Franchisee may owe to the
Franchisor against any amounts the Franchisor might owe to the Franchisee.

                                       10

<PAGE>

                                12. ADVERTISING

12.1.  Approval of Advertising.
       ------------------------

       The Franchisee shall obtain the Franchisor's prior written approval of
all written advertising or other marketing or promotional programs regarding the
PAK MAIL Center, including, without limitation, "Yellow Pages" advertising,
newspaper ads, flyers, brochures, coupons, direct mail pieces, Internet
advertising, including sites on the World Wide Web, specialty and novelty items
and radio and television advertising. The Franchisee shall also obtain the
Franchisor's prior written approval before using any promotional materials as
may be provided by vendors. The proposed written advertising or a description of
the marketing or promotional program shall be submitted to the Franchisor at
least 30 days prior to publication, broadcast or use. The Franchisee
acknowledges that advertising and promoting the PAK MAIL Center in accordance
with the Franchisor's standards and specifications is an essential aspect of the
System, and the Franchisee agrees to comply with all advertising standards and
specifications. The Franchisee shall display all required promotional materials,
signs, point of purchase displays and other marketing materials in its PAK MAIL
Center and in the manner prescribed by the Franchisor.

12.2.  Initial Marketing Materials.
       ----------------------------

       If this Agreement governs the first Center to be opened and operated by
the Franchisee, then the Franchisee shall pay to the Franchisor or to the
Advertising Fund, as the Franchisor shall designate, approximately $1,000 for
Franchisor's provision of a beginning inventory of marketing material for the
Franchisee's PAK MAIL Center. The cost of the initial inventory of marketing
materials is due and payable on or before the Franchisee's commencement of the
initial training program and is nonrefundable. The initial inventory of
marketing materials is provided at or around the opening of the Franchisee's
Center.

12.3.  Advertising Contribution.
       -------------------------

       The Franchisee shall contribute to an advertising fund established by the
Franchisor ("Advertising Fund") a fee equal to 2% of the total amount of the
Franchisee's Royalty Based Revenues ("Advertising Contribution"). The
Advertising Contribution shall be paid to the Franchisor in addition to
Royalties and the following terms and conditions shall apply:

              a. The Advertising Contribution shall be payable to "Pak Mail
       National Ad Fund" and made concurrently with the payment of the Royalties
       postmarked or otherwise transmitted in a manner directed by the
       Franchisor no later than the 10th day of each month, for the Advertising
       Contribution based on the Royalty Based Revenues of the immediately
       preceding month.

              b. The Advertising Contributions will be subject to the same late
       charges as the Royalties, in an amount and manner set forth in Section
       11.3 above.

              c. Upon the request of the Franchisee, the Franchisor will make
       available to the Franchisee, no later than 30 days after the end of each
       fiscal quarter, an unaudited financial statement which indicates how the
       Advertising Fund has been spent.

              d. The Franchisor shall direct all advertising and marketing
       programs financed by the Advertising Fund, with sole discretion over the
       creative concepts, materials and endorsements used therein, geographic,
       market and media placement and allocation, and the administration

                                       11

<PAGE>

       thereof. The Franchisee agrees that the Advertising Fund may be used to
       pay the costs of preparing and producing video and audio and written
       advertising materials; administering multi-regional advertising programs,
       including, without limitation, purchasing direct mail and other media
       advertising and employing advertising agencies and staff to assist
       therewith; and supporting public relations, market research and other
       advertising and marketing activities.

              e. The Advertising Fund shall be accounted for separately from the
       Franchisor's other funds and shall not be used to defray any of the
       Franchisor's general operating expenses, except for such reasonable
       administrative costs, salaries and overhead as the Franchisor may incur
       in activities related to the administration of the Advertising Fund and
       its marketing programs, including, without limitation, conducting market
       research, preparing material, incurring related accounting and legal
       expenses, collecting and accounting for Advertising Fund contributions
       and all costs and expenses related to the Franchise System Advisory
       Council. The Franchisor may spend in any fiscal year an amount greater or
       less than the aggregate contribution of all PAK MAIL Centers to the
       Advertising Fund in that year and the Advertising Fund may borrow from
       the Franchisor or other lenders to cover deficits or cause the
       Advertising Fund to invest any surplus for future use. All interest
       earned on monies contributed to the Advertising Fund will be first used
       to pay costs. The Advertising Fund may be incorporated or operated
       through an entity separate from the Franchisor at such time as the
       Franchisor deems appropriate, and such successor entity shall have all
       rights and duties of the Franchisor pursuant to this Section 12.3.

              f. The Franchisee understands and acknowledges that the
       Advertising Fund is intended to maximize recognition of the Marks and
       patronage of PAK MAIL Centers. Although the Franchisor will endeavor to
       utilize the Advertising Fund to develop advertising and marketing
       materials and programs and to place advertising that will benefit all PAK
       MAIL Centers, the Franchisor undertakes no obligation to ensure that
       expenditures by the Advertising Fund in or affecting any geographic area
       are proportionate or equivalent to the contributions by PAK MAIL Centers
       operating in that geographic area or that any PAK MAIL Center will
       benefit directly from or in proportion to its contribution to the
       development of advertising and marketing materials or the placement of
       advertising. The Advertising Fund is not a trust fund, and the Franchisor
       does not owe the Franchisee a fiduciary duty with respect to the
       maintenance, direction or administration of the Advertising Fund. Except
       as expressly provided in this Section 12.3, the Franchisor assumes no
       direct or indirect liability or obligation to the Franchisee with respect
       to the maintenance, direction or administration of the Advertising Fund.

              g. The Franchisor reserves the right to terminate the Advertising
       Fund, upon 30 days' written notice to the Franchisee. All unspent monies
       on the date of termination shall be distributed to the Franchisor's
       franchisees in proportion to their respective contributions to the
       Advertising Fund during the preceding 12 month period. The Franchisor
       shall have the right to reinstate the Advertising Fund upon the same
       terms and conditions set forth herein upon 30 days' prior written notice
       to the Franchisee.

12.4.  Regional Advertising Programs.
       ------------------------------

       The Franchisor reserves the right, upon 30 days prior written notice to
the Franchisee, to create a regional advertising association ("Association") for
the benefit of PAK MAIL franchisees located within a particular geographic area.
If an Association is established for the area where the Franchisee is located,
the Franchisee will be required to participate in the Association for the
purpose of selecting and participating in regional marketing and promotion
programs for PAK MAIL Centers. The Franchisor, in its sole discretion, may
contribute up to one-half of the Advertising Fund payments received by the

                                       12

<PAGE>

Franchisor from franchisees in the Association for such marketing and
advertising programs. The Franchisee will be required to remain a member of and
be bound by the decisions of the majority of the members of the Association
regarding expenditures, assessments and dues charged by the Association, to the
extent that they are approved by the Franchisor. Each Association has the right,
by majority vote, to require its members to pay additional monthly dues to the
Association. The failure of the Franchisee to participate in the Association or
pay any dues required by the Association, may, at the option of the Franchisor,
be deemed to be a breach of this Agreement. The Franchisor has the right, in its
sole discretion, to form and terminate all Associations and to determine the
composition of all geographic territories and market areas for the
implementation of such regional advertising and promotion campaigns and to
require that the Franchisee participate in such regional advertising programs as
and when they may be established by the Franchisor. If a regional advertising
program is implemented on behalf of a particular region by the Franchisor, the
Franchisor, to the extent reasonably calculable, will only use contributions
from PAK MAIL franchisees within such region for the particular regional
advertising program. The Franchisor also reserves the right to establish an
Association in the form of a cooperative for a particular region and enable the
cooperative Association to self-administer the regional advertising program. If
the Franchisor creates an Association, either as a cooperative or otherwise, the
Franchisor has the right to charge the Association for the actual costs of
forming and administering the Association.

12.5.  Electronic Advertising.
       -----------------------

       The Franchisor reserves the right to advertise on the Internet, including
the creation of a website with a Uniform Resource Locator ("URL") address and to
require the Franchisee's assistance in the development of Internet advertising,
including but not limited to the use of the Franchisee's street addresses and
pictures of their locations. The Franchisee shall not advertise on the Internet
by use of "banner ads" or otherwise or create an independent website without the
prior written consent of the Franchisor, as required by Section 12.1

                              13. QUALITY CONTROL

13.1.  Compliance with Operations Manual.
       ----------------------------------

       The Franchisee agrees to maintain and operate the PAK MAIL Center in
compliance with this Agreement and the standards and specifications contained in
the Operations Manual, as the Operations Manual may be modified from time to
time by the Franchisor.

13.2.  Standards and Specifications.
       -----------------------------

       The Franchisor will make available to the Franchisee standards and
specifications for products and services offered at or through the PAK MAIL
Center and for decor, displays, uniforms, materials, forms, items, POS System,
computer hardware and software, equipment, supplies and services used in
connection with the Center. The Franchisor reserves the right to change
standards and specifications for services and products offered at or through the
PAK MAIL Center and for the decor, displays, uniforms, materials, forms, items,
POS System, computer hardware and software, equipment, supplies and services
used in connection with the Center, upon 30 days prior written notice to the
Franchisee. The Franchisee shall, throughout the term of this Agreement, remain
in compliance with and strictly adhere to all of the Franchisor's current
standards and specifications for the PAK MAIL Center as prescribed from time to
time.

                                       13

<PAGE>

13.3.  Inspections.
       ------------

       The Franchisor shall have the right to examine the Franchised Location,
including the inventory, products, equipment, materials, supplies or services
used or sold there, to ensure compliance with all standards and specifications
set by the Franchisor. The Franchisor shall conduct such inspections during
regular business hours and the Franchisee may be present at such inspections.
The Franchisor, however, reserves the right to conduct the inspections without
prior notice to the Franchisee.

13.4.  Restrictions on Services and Products.
       --------------------------------------

       The Franchisee is prohibited from offering or selling any products or
services not authorized by the Franchisor as being a part of the System.
However, if the Franchisee proposes to offer, conduct or utilize any products,
services, materials, forms, items, supplies or services for use in connection
with or sale through the PAK MAIL Center which are not previously approved by
the Franchisor as meeting its specifications, the Franchisee shall first notify
the Franchisor in writing requesting approval. The Franchisor may, in its sole
discretion, for any reason whatsoever, elect to withhold such approval; however,
in order to make such determination, the Franchisor may require submission of
specifications, information, or samples of such products, services, materials,
forms, items or supplies. The Franchisor will advise the Franchisee within a
reasonable time whether such products, services, materials, forms, items or
supplies meet its specifications.

13.5.  Approved Suppliers.
       -------------------

       The Franchisee shall purchase all products, services, supplies and
materials required for the operation of the PAK MAIL Center from suppliers
designated or approved by the Franchisor or, if there is no designated or
approved supplier for a particular product, service, supply or material, from
such other suppliers who meet all of the Franchisor's specifications and
standards as to quality, composition, finish, appearance and service, and who
shall adequately demonstrate their capacity and facilities to supply the
Franchisee's needs in the quantities, at the times, and with the reliability
requisite to an efficient operation of the PAK MAIL Center.

13.6.  Request to Approve Supplier.
       ----------------------------

       In the event the Franchisee desires to purchase or use products,
services, supplies or materials from suppliers other than those previously
approved by the Franchisor, the Franchisee shall, prior to purchasing from or
otherwise utilizing any supplier, give the Franchisor a written request to
approve the supplier. In the event the Franchisor rejects the Franchisee's
requested new supplier, the Franchisor must, within 60 days of the receipt of
the Franchisee's request to approve the supplier, notify the Franchisee in
writing of its rejection. The Franchisor may periodically inspect any suppliers'
facilities and products to assure compliance with the Franchisor's standards and
specifications. Permission to conduct periodic inspections and payment of the
Franchisor's costs incurred in conducting periodic inspections shall be a
condition of the continued approval of such supplier. The Franchisor may, at its
sole discretion, for any reason whatsoever, elect to withhold approval of the
supplier; however, in order to make such determination, the Franchisor may
require that samples from a proposed new supplier be delivered to the Franchisor
for testing prior to approval and use. A charge not to exceed the actual cost of
the test may be made by the Franchisor and shall be paid by the Franchisee.

13.7.  Shopping Service.
       -----------------

       The Franchisor reserves the right to use third party shopping services
from time to time to evaluate the conduct of the Franchisee's PAK MAIL Center,
including such things as customer service, cleanliness, merchandising and proper

                                       14

<PAGE>

use of the POS System. Franchisor may use such shopping services to inspect the
Franchisee's PAK MAIL Center at any time at the Franchisor's expense, without
prior notification to the Franchisee. The Franchisor may make the results of any
such service evaluation available to the Franchisee, in the Franchisor's sole
discretion.

                14. MARKS, TRADE NAMES AND PROPRIETARY INTERESTS

14.1.  Marks.
       ------

       The Franchisee acknowledges that the Franchisor has the sole right to
own, license and control the Franchisee's use of the PAK MAIL service mark and
other of the Marks, and that such Marks shall remain under the sole and
exclusive ownership and control of the Franchisor. The Franchisee acknowledges
that it has not acquired any right, title or interest in such Marks except for
the right to use such marks in the operation of its PAK MAIL Center as it is
governed by this Agreement. Except as may be permitted in the Operations Manual,
the Franchisee agrees not to use any of the Marks as part of an electronic mail
address or on any sites on the Internet or the World Wide Web and the Franchisee
agrees not to use or register any of the Marks as a domain name on the Internet.

14.2.  No Use of Other Marks.
       ----------------------

       The Franchisee agrees that no service mark other than "PAK MAIL" or such
other Marks as may be specified by the Franchisor shall be used in the
identification, marketing, promotion or operation of the PAK MAIL Center.

14.3.  System.
       -------

       The Franchisee acknowledges that the Franchisor owns and controls the
distinctive plan for the establishment, operation and promotion of the PAK MAIL
Center and all related licensed methods of doing business, previously defined as
the "System," which include, but are not limited to, methods for shipping,
crating, freight forwarding, mailing, communications, information services,
inventory type and control, technical equipment standards, customer relations,
marketing techniques, written promotional materials, advertising, and accounting
systems, all of which constitute confidential trade secrets of the Franchisor,
and the Franchisee acknowledges that the Franchisor has valuable rights in and
to such trade secrets. The Franchisee further acknowledges that it has not
acquired any right, title or interest in the System except for the right to use
the System in the operation of the PAK MAIL Center as it is governed by this
Agreement and that it is obligated to maintain the confidentiality of the System
in accordance with Section 20.3 below. The Franchisee's changes or improvements
to the System will inure to the exclusive benefit of the Franchisor.

14.4.  Mark Infringement.
       ------------------

       The Franchisee agrees to notify the Franchisor in writing of any possible
infringement or illegal use by others of a trademark the same as or confusingly
similar to one or more of the Marks which may come to its attention. The
Franchisee acknowledges that the Franchisor shall have the right, in its sole
discretion, to determine whether any action will be taken on account of any
possible infringement or illegal use. The Franchisor may commence or prosecute
such action in the Franchisor's own name and may join the Franchisee as a party
to the action if the Franchisor determines it to be reasonably necessary for the
continued protection and quality control of the Marks. The Franchisor shall bear
the reasonable cost of any such action, including attorneys' fees. The
Franchisee agrees to fully cooperate with the Franchisor in any such litigation.

                                       15

<PAGE>

14.5.  Franchisee's Business Name.
       ---------------------------

       The Franchisee acknowledges that the Franchisor has a prior and superior
claim to the "PAK MAIL" trade name. The Franchisee shall not use one or both of
the words "PAK MAIL" in the legal name of its corporation, partnership or any
other business entity used in conducting the business provided for in this
Agreement. The Franchisee also agrees not to register or attempt to register a
trade name using one or both of the words "PAK MAIL" in the Franchisee's name or
that of any other person or business entity, without prior written consent of
the Franchisor. The Franchisee shall not identify itself as being "Pak Mail
Centers of America, Inc." or as being associated with the Franchisor in any
manner other than as a franchisee or licensee. The Franchisee further agrees
that in all advertising and promotion and promotional materials it will display
its business name only in obvious conjunction with the phrase "PAK MAIL
Licensee" or "PAK MAIL Franchisee" or with such other words and in such other
phrases to identify itself as an independent owner of the PAK MAIL Center, as
may from time to time be prescribed in the Operations Manual.

14.6.  Change of Marks.
       ----------------

       In the event that the Franchisor, in its sole discretion, shall determine
it necessary to modify or discontinue use of any proprietary Marks, or to
develop additional or substitute marks, the Franchisee shall, within a
reasonable time after receipt of written notice of such a modification or
discontinuation from the Franchisor, take such action, at the Franchisee's sole
expense, as may be necessary to comply with such modification, discontinuation,
addition or substitution.

                 15. REPORTS, RECORDS AND FINANCIAL STATEMENTS

15.1.  Franchisee Reports.
       -------------------

       The Franchisee shall establish and maintain, at its own expense,
bookkeeping, accounting and data processing systems which conform to the
specifications which the Franchisor may prescribe from time to time (including,
without limitation, requirements for timely entry of information into data bases
of the POS System, periodic printouts of reports generated by the POS System and
the Franchisor's access to all POS System data by modem). Each transaction of
the Center shall be processed on the POS System in the manner prescribed by the
Franchisor. The Franchisor shall have the right of access to the POS System and
all data processed thereon with respect to the Center. The Franchisee shall
provide the Franchisor with electronic access to the POS System and its data at
any time by obtaining and maintaining an account with an internet service
provider, paying an annual fee to the Franchisor for an electronic
communications connection and obtaining and maintaining computer hardware which
meets the Franchisor's standards and specifications. The Franchisee shall supply
to the Franchisor such types of reports in a manner and form as the Franchisor
may from time to time reasonably require, including:

              a. within 10 days after the end of each calendar month (or weekly
       or bi-weekly if the Franchisor requires the Franchisee to pay the Royalty
       described in Section 11.1 hereof on a weekly or bi-weekly basis), a
       report on the Center's Royalty Based Revenues for such calendar month (or
       week or two weeks) which shall include, if the Franchisee is an entity, a
       report on such entities' Royalty Based Revenues;

              b. within 90 days after the end of the Franchisee's fiscal year, a
       balance sheet and profit and loss statement for the Center which shall
       include, if the Franchisee is an entity, a balance sheet and profit and

                                       16

<PAGE>

       loss statement for such entity, for such year (or monthly or quarterly if
       required by the Franchisor, in which case such statements shall also
       reflect year-to-date information); and

              c. upon request of the Franchisor, within 10 days after such
       returns are filed, exact copies of federal and state income, sales and
       any other tax returns and such other forms, records, books and other
       information as the Franchisor may periodically require.

The Franchisor reserves the right to require that the Franchisee submit
financial statements on a quarterly or monthly basis and within such time
periods as may be reasonable under the circumstances. The Franchisor also
reserves the right to disclose data derived from such reports, without
identifying the Franchisee, except to the extent identification of the
Franchisee is required by law. The Franchisee consents to the Franchisor
obtaining financial and account information regarding the Center and its
operations from third parties with whom the Franchisee does business, as and
when deemed necessary by the Franchisor. The Franchisor reserves the right to
automatically assess the Franchisee a monthly $50 late charge for any report,
financial statement, or tax return required under this Section which is not
timely filed by the Franchisee. Such late charge shall continue to accrue each
month that said report(s), financial statement(s) and tax return(s) remain
unfiled, and shall be due and payable in full upon demand by the Franchisor. In
the event such late charge(s) is/are not paid upon demand, the Franchisor may
elect to pursue remedies as further set forth in this Agreement.

15.2.  Verification.
       -------------

       Each report and financial statement to be submitted to the Franchisor
pursuant to this Agreement shall be signed and verified by the Franchisee.

15.3.  Books and Records.
       ------------------

       The Franchisee shall maintain all books and records for its PAK MAIL
Center in accordance with generally accepted accounting principles, consistently
applied, and in a manner as reasonably prescribed by the Franchisor, and shall
preserve these records for at least five years after the fiscal year to which
they relate.

15.4.  Audit of Books and Records.
       ---------------------------

       The Franchisee shall permit the Franchisor to inspect and audit the books
and records of the PAK MAIL Center at any reasonable time, at the Franchisor's
expense. If any audit discloses a deficiency in amounts for payments owed to the
Franchisor pursuant to this Agreement, then such amounts shall become
immediately payable to the Franchisor by the Franchisee, with interest from the
date such payments were due at the lesser of 1 1/2% per month or the maximum
rate allowed by law. In the event such inspection or audit is made necessary by
the Franchisee's failure to furnish required reports, supporting records or
other information, or by the Franchisee's failure to furnish such information on
a timely basis for two or more consecutive reporting periods, or if the
Franchisee has received advance notice from the Franchisor and fails to have the
books and records available for such audit or otherwise fails to cooperate
therewith or if an understatement of Royalty Based Revenues for the period of
any audit is determined by any such audit or inspection to be greater than 5%,
the Franchisee shall reimburse the Franchisor for the cost of such audit or
inspection, including, without limitation, the charges of attorneys and any
independent accountants and the travel expenses, room and board and compensation
of the Franchisor's employees.

                                       17

<PAGE>

                                  16. TRANSFER

16.1.  Transfer by Franchisee.
       -----------------------

       The franchise granted herein is personal to the Franchisee and, except as
stated below, the Franchisor shall not allow or permit any transfer, assignment,
subfranchise or conveyance of this Agreement or any interest hereunder. As used
in this Agreement, the term "transfer" shall mean and include the voluntary,
involuntary, direct or indirect assignment, sale, gift or other disposition by
the Franchisee (or any of its owners) of any interest in: (1) this Agreement;
(2) the ownership of the Franchisee; or (3) the Center or any assets of the
Center. Transfer shall include an assignment, sale, gift or other disposition
resulting from a divorce, insolvency, corporate or partnership dissolution
proceeding or otherwise by operation of law or, in the event of the death of the
Franchisee, or an owner of the Franchisee, by will, declaration of or transfer
in trust or under the laws of intestate succession.

16.2.  Pre-Conditions to Franchisee's Transfer.
       ----------------------------------------

       The Franchisee shall not transfer its rights under this Agreement or any
interest in it, or any part or portion of any business entity that owns it or
all or a substantial portion of the assets of the PAK MAIL Center, unless the
Franchisee obtains the Franchisor's written consent and complies with the
following requirements:

              a. Payment of all amounts due and owing pursuant to this Agreement
       by the Franchisee to the Franchisor or its affiliates or to third parties
       holding a security interest in any asset of the franchised business;

              b. Agreement by the proposed transferee to satisfactorily complete
       the initial training program described in this Agreement, which training
       may be completed by the transferee either prior to or immediately after
       transfer of rights under this Agreement;

              c. Execution of a Franchise Agreement in a form then currently
       offered by the Franchisor, which shall supersede this Agreement in all
       respects. If a new Franchise Agreement is signed, the terms thereof may
       differ from the terms of this Agreement; provided, however, the
       transferee will not be required to pay any additional initial franchise
       fee;

              d. Provision by the Franchisee of written notice to the Franchisor
       30 days' prior to the proposed effective date of the transfer, such
       notice to contain information reasonably detailed to enable the
       Franchisor to evaluate the terms and conditions of the proposed transfer;

              e. The proposed transferee shall have provided information to the
       Franchisor sufficient for the Franchisor to assess the proposed
       transferee's business experience, aptitude and financial qualification,
       and the Franchisor shall have ascertained that the proposed transferee
       meets such qualifications;

              f. Execution by Franchisee of a general release, in a form
       satisfactory to the Franchisor, of any and all claims against the
       Franchisor, its affiliates and their respective officers, directors,
       employees and agents;

              g. Payment by the Franchisee or the proposed transferee of $4,000;
       and

                                       18

<PAGE>

              h. Agreement by the Franchisee to abide by the post-termination
       covenant not to compete set forth in Section 20.2 below.

16.3.  Franchisor's Approval of Transfer.
       ----------------------------------

       The Franchisor has 30 days from the date of the written notice of the
proposed transfer to approve or disapprove in writing, of the Franchisee's
proposed transfer. The Franchisee acknowledges that the proposed transferee
shall be evaluated for approval by the Franchisor based on the same criteria as
is currently being used to assess new franchisees of the Franchisor and that
such proposed transferee shall be provided, if appropriate, with such
disclosures as may be required by state or federal law. The Franchisor shall
have the right to approve the material terms and conditions of the transfer,
including, without limitation, the right to confirm that the price and terms of
payment are not so burdensome as to affect adversely the transferee's operation
of the Center. If the Franchisee (and/or the transferring owners) finance any
part of the sale price of the transferred interest, if any, unless waived in
writing by the Franchisor, the Franchisee and/or its owners must agree that all
obligations of the transferee under or pursuant to any promissory notes,
agreements or security interests reserved by the Franchisee or its owners in the
assets of the Center or the Franchised Location shall be subordinate to the
transferee's obligations to pay Royalties, Advertising Contributions and other
amounts due to the Franchisor and its affiliates and to otherwise comply with
this Agreement. If the Franchisee and the proposed transferee comply with all
conditions for assignment set forth herein and the Franchisor has not given the
Franchisee notice of its approval or disapproval within the 30 day period,
approval is deemed granted.

16.4.  Right of First Refusal.
       -----------------------

       In the event the Franchisee wishes to transfer its rights under this
Agreement or any interest in it, or any part or portion of any business entity
that owns it, or all or a substantial portion of the assets of the PAK MAIL
Center, the Franchisee agrees to grant to the Franchisor a 30 day right of first
refusal to purchase such rights, interest or assets on the same terms and
conditions as are contained in the written offer to purchase submitted to the
Franchisee by the proposed purchaser; provided, however, the following
additional terms and conditions shall apply:

              a. The Franchisee shall notify the Franchisor of such offer by
       sending a written notice to the Franchisor (which notice may be the same
       notice as required by Section 16.2(d) above), enclosing a copy of the
       written offer from the proposed purchaser;

              b. The 30 day right of first refusal period will run concurrently
       with the period in which the Franchisor has to approve or disapprove the
       proposed transferee;

              c. Such right of first refusal is effective for each proposed
       transfer and any material change in the terms or conditions of the
       proposed transfer shall be deemed a separate offer on which a new 30 day
       right of first refusal shall be given to the Franchisor;

              d. If the consideration or manner of payment offered by a third
       party is such that the Franchisor may not reasonably be required to
       furnish the same, then the Franchisor may purchase the interest which is
       proposed to be sold for the reasonable cash equivalent. If the parties
       cannot agree within a reasonable time on the cash consideration, an
       independent appraiser shall be designated by the Franchisor, whose
       determination will be binding upon the parties. All expenses of the
       appraiser shall be paid for equally between the Franchisor and the
       Franchisee; and

              e. If the Franchisor chooses not to exercise its right of first
       refusal, the Franchisee shall be free to complete the sale, transfer or
       assignment, subject to compliance with Sections 16.2 and 16.3 above.
       Absence of a reply to the Franchisee's notice of a proposed sale within
       the 30 day period is deemed a waiver of such right of first refusal.

                                       19

<PAGE>

16.5.  Specific Types of Transfers.
       ----------------------------

       The Franchisee acknowledges that the Franchisor's right to approve or
disapprove of a proposed transfer, and all other requirements and rights related
to such proposed transfer, as provided for above, shall apply (1) if the
Franchisee is a partnership or other business association, to the addition or
deletion of a partner or members of the association or the transfer of any
partnership or membership among existing partners or members; (2) if the
Franchisee is a corporation, to any proposed transfer of 25% or more of the
stock of the corporate Franchisee, whether such transfer occurs in a single
transaction or several transactions; and (3) if the Franchisee is an individual,
to the transfer from such individual or individuals to a corporation controlled
by them, in which case the Franchisor's approval will be conditioned upon: (i)
the continuing personal guarantee of the individual (or individuals) for the
performance of obligations under this Agreement; (ii) the issuance and/or
transfer of shares which would affect a change in ownership of 25% or more of
the stock in the corporation being conditioned on the Franchisor's prior written
approval; (iii) a limitation on the corporation's business activity to that of
operating the PAK MAIL Center and related activities; and (iv) other reasonable
conditions. With respect to a proposed transfer as described in subsection (1)
and (3) of this Section, the Franchisor's right of first refusal to purchase, as
set forth above, shall not apply and the Franchisor will waive any transfer fee
chargeable to the Franchisee for a transfer under these circumstances.

16.6.  Assignment by the Franchisor.
       -----------------------------

       This Agreement is fully assignable by the Franchisor and shall inure to
the benefit of any assignee or other legal successor in interest, and the
Franchisor shall in such event be fully released from the same.

16.7.  Franchisee's Death or Disability.
       ---------------------------------

       Upon the death or permanent disability of the Franchisee (or the
Franchisee's individual controlling the Franchisee entity), the executor,
administrator, conservator, guardian or other personal representative of such
person shall transfer the Franchisee's interest in this Agreement or such
interest in the Franchisee entity to an approved third party. Such disposition
of this Agreement or such interest (including, without limitation, transfer by
bequest or inheritance) shall be completed within a reasonable time, not to
exceed 120 days from the date of death or permanent disability, and shall be
subject to all terms and conditions applicable to transfers contained in this
Article 16. Provided, however, that for purposes of this Section 16.7, there
shall be no fee charged by the Franchisor for the initial training program
offered to the transferee. Failure to transfer the interest in this Agreement or
such interest in the Franchisee entity within said period of time shall
constitute a breach of this Agreement. For the purposes hereof, the term
"permanent disability" shall mean a mental or physical disability, impairment or
condition that is reasonably expected to prevent or actually does prevent the
Franchisee or the owner of a controlling interest in the Franchisee entity from
supervising the management and operation of the PAK MAIL Center for a period of
120 days from the onset of such disability, impairment or condition.

                            17. TERM AND EXPIRATION

17.1.  Term.
       -----

       The term of this Agreement is for a period of 10 years from the date of
this Agreement, unless sooner terminated as provided herein.

                                       20

<PAGE>

17.2.  Continuation.
       -------------

       If the Franchisee continues to operate the Center with the Franchisor's
express or implied consent following the expiration or termination of this
Agreement, the continuation will be a month-to-month extension of this
Agreement. This Agreement will then be terminable by either party on 30 days
written notice. Otherwise, all provisions of this Agreement will apply while the
Franchisee continues to operate the Center.

17.3.  Rights Upon Expiration.
       -----------------------

       At the end of the initial term hereof the Franchisee shall have the
option to renew its franchise rights for an additional term, by acquiring
successor franchise rights, if the Franchisor does not exercise its right not to
offer a successor franchise in accordance with Section 17.5 below and if the
Franchisee:

              a. At least 30 days prior to expiration of the term, executes the
       form of Franchise Agreement then in use by the Franchisor;

              b. Has complied with all provisions of this Agreement during the
       current term, including the payment on a timely basis of all Royalties
       and other fees due hereunder. "Compliance" shall mean, at a minimum, that
       the Franchisee has not received any written notification from the
       Franchisor of breach hereunder more than four times during the term
       hereof;

              c. Upgrades and/or remodels the PAK MAIL Center and its operations
       at the Franchisee's sole expense (the necessity of which shall be in the
       sole discretion of the Franchisor) to conform with the then current
       Operations Manual;

              d. Executes a general release, in a form satisfactory to the
       Franchisor, of any and all claims against the Franchisor and its
       affiliates, and their respective officers, directors, employees and
       agents arising out of or relating to this Agreement; and

              e. Pays a successor franchise fee of $2,500.

17.4.  Exercise of Option for Successor Franchise.
       -------------------------------------------

       The Franchisee may exercise its option for a successor franchise by
giving written notice of such exercise to the Franchisor not later than 180 days
prior to the scheduled expiration of this Agreement. The Franchisee's successor
franchise rights shall become effective by signing the Franchise Agreement then
currently being offered to new franchisees of the Franchisor.

17.5.  Conditions of Refusal.
       ----------------------

       The Franchisor shall not be obligated to offer the Franchisee a successor
franchise upon the expiration of this Agreement if the Franchisee fails to
comply with any of the above conditions of renewal. In such event (except for
failure to execute the then current Franchise Agreement or pay the successor
franchise fee) the Franchisor shall give notice of expiration at least 180 days
prior to the expiration of the term, and such notice shall set forth the reasons
for such refusal to offer successor franchise rights. Upon the expiration of
this Agreement, the Franchisee shall comply with the provisions of Section 18.5
below.

                                       21

<PAGE>

                          18. DEFAULT AND TERMINATION

18.1.  Termination by Franchisee.
       --------------------------

       If the Franchisee and its owners are in compliance with this Agreement
and the Franchisor fails to comply with this Agreement and fails to correct such
failure within 30 days after written notice of failure to comply is delivered to
the Franchisor, the Franchisee may terminate this Agreement effective 10 days
after delivery to the Franchisor of notice of termination. A termination of this
Agreement by the Franchisee for any other reason, or without notice and right to
cure, shall be deemed a termination by the Franchisee without cause and in no
way shall release the Franchisee from the terms and conditions of this
Agreement.

18.2.  Termination by Franchisor - Effective Upon Notice.
       --------------------------------------------------

       The Franchisor shall have the right, at its option, to terminate this
Agreement and all rights granted the Franchisee hereunder, without affording the
Franchisee any opportunity to cure any default (subject to any state laws to the
contrary, where state law shall prevail), effective upon receipt of notice by
the Franchisee, addressed as provided in Section 22.13, upon the occurrence of
any of the following events:

              a. Abandonment. If the Franchisee ceases to operate the PAK MAIL
       Center or otherwise abandons the PAK MAIL Center for a period of three
       consecutive days, or any shorter period that indicates an intent by the
       Franchisee to discontinue operation of the PAK MAIL Center, unless and
       only to the extent that full operation of the PAK MAIL Center is
       suspended or terminated due to fire, flood, earthquake or other similar
       causes beyond the Franchisee's control and not related to the
       availability of funds to the Franchisee;

              b. Insolvency; Assignments. If the Franchisee becomes insolvent or
       is adjudicated a bankrupt; or any action is taken by the Franchisee, or
       by others against the Franchisee under any insolvency, bankruptcy or
       reorganization act, (this provision may not be enforceable under federal
       bankruptcy law, 11 U.S.C. ss.ss. 101 et seq.), or if the Franchisee makes
       an assignment for the benefit of creditors, or a receiver is appointed by
       the Franchisee;

              c. Unsatisfied Judgments; Levy; Foreclosure. If any material
       judgment (or several judgments which in the aggregate are material) is
       obtained against the Franchisee and remains unsatisfied or of record for
       30 days or longer (unless a supersedeas or other appeal bond has been
       filed); or if execution is levied against the Franchisee's business or
       any of the property used in the operation of the PAK MAIL Center and is
       not discharged within five days; or if the real or personal property of
       the Franchisee's business shall be sold after levy thereupon by any
       sheriff, marshal or constable;

              d. Criminal Conviction. If the Franchisee is convicted of a
       felony, a crime involving moral turpitude, or any crime or offense that
       is reasonably likely, in the sole opinion of the Franchisor, to
       materially and unfavorably affect the System, Marks, goodwill or
       reputation thereof;

              e. Failure to Make Payments. If the Franchisee fails to pay any
       amounts due the Franchisor or affiliates, including any amounts which may
       be due as a result of any subleases or lease assignments between the
       Franchisee and the Franchisor, within 10 days after receiving notice that
       such fees or amounts are overdue;

                                       22

<PAGE>

              f. Misuse of Marks. If the Franchisee misuses or fails to follow
       the Franchisor's directions and guidelines concerning use of the
       Franchisor's Marks and fails to correct the misuse or failure within ten
       days after notification from the Franchisor;

              g. Unauthorized Disclosure. If the Franchisee intentionally or
       negligently discloses to any unauthorized person the contents of or any
       part of the Franchisor's Operations Manual, the POS System, or any other
       trade secrets or confidential information of the Franchisor;

              h. Repeated Noncompliance. If the Franchisee has received two
       previous notices of default from the Franchisor and is again in default
       of this Agreement within a 12 month period, regardless of whether the
       previous defaults were cured by the Franchisee; or

              i. Unauthorized Transfer. If the Franchisee sells, transfers or
       otherwise assigns the Franchise, an interest in the Franchise or the
       Franchisee entity, this Agreement, the PAK MAIL Center or a substantial
       portion of the assets of the PAK MAIL Center owned by the Franchisee
       without complying with the provisions of Article 16 above.

18.3.  Termination by Franchisor - Thirty Days Notice.
       -----------------------------------------------

       The Franchisor shall have the right to terminate this Agreement (subject
to any state laws to the contrary, where state law shall prevail), effective
upon 30 days written notice to the Franchisee, if the Franchisee breaches any
other provision of this Agreement and fails to cure the default during such 30
day period. In that event, this Agreement will terminate without further notice
to the Franchisee, effective upon expiration of the 30 day period. Defaults
shall include, but not be limited to, the following:

              a. Failure to Maintain Standards. The Franchisee fails to maintain
       the then current operating procedures and adhere to the specifications
       and standards established by the Franchisor as set forth herein or in the
       Operations Manual or otherwise communicated to the Franchisee;

              b. Deceptive Practices. The Franchisee engages in any unauthorized
       business or practice or sells any unauthorized product or service under
       the Franchisor's Marks or under a name or mark which is confusingly
       similar to the Franchisor's Marks;

              c. Failure to Obtain Consent. The Franchisee fails, refuses or
       neglects to obtain the Franchisor's prior written approval or consent as
       required by this Agreement;

              d. Failure to Comply with Manual. The Franchisee fails or refuses
       to comply with the then-current requirements of the Operations Manual; or

              e. Breach of Related Agreement. The Franchisee defaults under any
       term of the purchase contract, lease, sublease or lease assignment for
       the Franchised Location, any other agreement material to the PAK MAIL
       Center, any other Franchise Agreement between the Franchisor and the
       Franchisee or any other agreement between the Franchisor and the
       Franchisee and such default is not cured within the time specified in
       such purchase contract, lease, sublease, other agreement or other
       Franchise Agreement. Provided, however, so long as financing from the
       United States Small Business Administration remains outstanding, the
       Franchisee will be given the same opportunity to cure defaults under any
       agreement between the Franchisor or its affiliates and the Franchisee, as
       the Franchisee is given under this Agreement.

                                       23

<PAGE>

Notwithstanding the foregoing, if the breach is curable, but is of a nature
which cannot be reasonably cured within such 30 day period and the Franchisee
has commenced and is continuing to make good faith efforts to cure the breach
during such 30 day period, the Franchisee shall be given an additional
reasonable period of time to cure the same, and this Agreement shall not
automatically terminate without written notice from the Franchisor.

18.4.  Right to Purchase.
       ------------------

       Upon termination or expiration of this Agreement for any reason, the
Franchisor shall have the option to purchase the PAK MAIL Center or a portion of
the assets of the Center, which may include, at the Franchisor's option, all of
the Franchisee's interest, if any, in and to the real estate upon which the PAK
MAIL Center is located, and all buildings and other improvements thereon,
including leasehold interests, at fair market value, less any amount apportioned
to the goodwill of the PAK MAIL Center which is attributable to the Franchisor's
Marks and System, and less any amounts owed to the Franchisor by the Franchisee.
The following additional terms shall apply to the Franchisor's exercise of this
option:

              a. The Franchisor's option hereunder shall be exercisable by
       providing the Franchisee with written notice of its intention to exercise
       the option given to the Franchisee no later than the effective date of
       termination, in the case of termination, or at least 90 days prior to the
       expiration of the term of the franchise, in the case of non-renewal.

              b. The Franchisor and the Franchisee agree that the terms and
       conditions of this right and option to purchase may be recorded, if
       deemed appropriate by the Franchisor, in the real property records and
       the Franchisor and the Franchisee further agree to execute such
       additional documentation as may be necessary and appropriate to
       effectuate such recording.

              c. The Franchisor shall set the closing for the purchase of the
       PAK MAIL Center to take place no later than 60 days after the termination
       or nonrenewal date. The Franchisor will pay the purchase price in full at
       the closing, or, at its option, in five equal consecutive monthly
       installments with interest at a rate of ten percent per annum. The
       Franchisee must sign all documents of assignment and transfer as are
       reasonably necessary for purchase of the PAK MAIL Center or its assets by
       the Franchisor.

              d. During the time after the Franchisor notifies the Franchisee of
       the exercise of the option but before the closing ("Interim Period"), the
       Franchisor has the right to obtain an independent appraisal of the fair
       market value of the assets being purchased and, if the Franchisor
       requests that such an appraisal be obtained, the Franchisor and the
       Franchisee shall each select an appraiser who, in turn, shall select a
       third appraiser, whose appraisal shall be binding on both parties. The
       obligation of the Franchisor to close shall be contingent on the
       appraisal being acceptable to the Franchisor.

In the event that the Franchisor does not exercise the Franchisor's right to
purchase the Franchisee's PAK MAIL Center as set forth above, the Franchisee
will be free to keep or to sell, after such termination or expiration, to any
third party, all of the physical assets of its PAK MAIL Center; provided,
however, that all appearances of the Marks are first removed in a manner
approved in writing by the Franchisor.

18.5.  Obligations of Franchisee Upon Termination or Expiration.
       ---------------------------------------------------------

       The Franchisee is obligated upon termination or expiration of this
Agreement to immediately:

                                       24

<PAGE>

              a. Pay to the Franchisor all Royalties, Advertising Contributions,
       other fees, and any and all amounts or accounts payable then owed the
       Franchisor or its affiliates pursuant to this Agreement, or pursuant to
       any other agreement, whether written or oral, including subleases and
       lease assignments, between the parties;

              b. Cease to identify itself as a PAK MAIL franchisee or publicly
       identify itself as a former Franchisee or use any of the Franchisor's
       trade secrets, signs, symbols, devices, trade names, trademarks, or other
       materials.

              c. Immediately cease to identify the Franchised Location as being,
       or having been, associated with the Franchisor and, if deemed necessary
       by the Franchisor, paint or otherwise change the interior and exterior of
       the Center to distinguish it from a PAK MAIL Center and immediately cease
       using any proprietary mark of the Franchisor or any mark in any way
       associated with the PAK MAIL Marks and System;

              d. Deliver to the Franchisor all items which bear the PAK MAIL
       Marks, signs, sign-faces, advertising materials, forms and other
       materials bearing any of the Marks or otherwise identified with the
       Franchisor and obtained by and in connection with this Agreement;

              e. Immediately deliver to the Franchisor the Operations Manual and
       all other information, documents and copies thereof which are proprietary
       to the Franchisor;

              f. Take such action as may be required to cancel all fictitious or
       assumed names or equivalent registrations relating to its use of any
       Marks which are under the exclusive control of the Franchisor or, at the
       option of the Franchisor, assign the same to the Franchisor;

              g. Notify the telephone company and all telephone directory
       publishers of the termination or expiration of the Franchisee's right to
       use any telephone number and any regular, classified or other telephone
       directory listings associated with any Mark and to authorize transfer
       thereof to the Franchisor or its designee. The Franchisee acknowledges
       that, as between the Franchisee and the Franchisor, the Franchisor has
       the sole rights to and interest in all telephone, telecopy or facsimile
       machine numbers and directory listings associated with any Mark. The
       Franchisee authorizes the Franchisor, and hereby appoints the Franchisor
       and any of its officers as the Franchisee's attorney-in-fact, to direct
       the telephone company and all telephone directory publishers to transfer
       any telephone, telecopy or facsimile machine numbers and directory
       listings relating to the PAK MAIL Center to the Franchisor or its
       designee, should the Franchisee fail or refuse to do so, and the
       telephone company and all telephone directory publishers may accept such
       direction or this Agreement as conclusive of the Franchisor's exclusive
       rights in such telephone numbers and directory listings and the
       Franchisor's authority to direct their transfer;

              h. If applicable, take such action as may be required to remove
       from the internet all sites referring to the Franchisee's former PAK MAIL
       Center or any of the Marks and to cancel or assign to the Franchisor, in
       the Franchisor's sole discretion, all rights to any domain names for any
       sites on the internet that refer to the Franchisee's former PAK MAIL
       Center or any of the Marks; and

              i. Abide by all restrictive covenants set forth in Article 20 of
       this Agreement.

                                       25

<PAGE>

18.6.  Acknowledgement.
       ----------------

       In the event this Agreement is terminated by the Franchisor prior to its
expiration as set forth in Sections 18.2 and 18.3 above, the Franchisee
acknowledges and agrees that, in addition to all other available remedies, the
Franchisor shall have the right to recover lost future royalties during any
period in which the Franchisee fails to pay such royalties through and including
the remainder of the then current term of this Agreement.

18.7.  State and Federal Law.
       ----------------------

       THE PARTIES ACKNOWLEDGE THAT IN THE EVENT THAT THE TERMS OF THIS
AGREEMENT REGARDING TERMINATION OR EXPIRATION ARE INCONSISTENT WITH APPLICABLE
STATE OR FEDERAL LAW, SUCH LAW SHALL GOVERN THE FRANCHISEE'S RIGHTS REGARDING
TERMINATION OR EXPIRATION OF THIS AGREEMENT.

                           19. BUSINESS RELATIONSHIP

19.1.  Independent Businesspersons.
       ----------------------------

       The parties agree that each of them are independent businesspersons,
their only relationship is by virtue of this Agreement and that no fiduciary
relationship is created hereunder. Neither party is liable or responsible for
the other's debts or obligations, nor shall either party be obligated for any
damages to any person or property directly or indirectly arising out of the
operation of the other party's business authorized by or conducted pursuant to
this Agreement. The Franchisor and the Franchisee agree that neither of them
will hold themselves out to be the agent, employer or partner of the other and
that neither of them has the authority to bind or incur liability on behalf of
the other.

19.2.  Payment of Third Party Obligations.
       -----------------------------------

       The Franchisor shall have no liability for the Franchisee's obligations
to pay any third parties, including without limitation, any product vendors, or
any sales, use, service, occupation, excise, gross receipts, income, property or
other tax levied upon the Franchisee, the Franchisee's property, the PAK MAIL
Center or upon the Franchisor in connection with the sales made or business
conducted by the Franchisee (except any taxes the Franchisor is required by law
to collect from the Franchisee with respect to purchases from the Franchisor).

19.3.  Indemnification.
       ----------------

       The Franchisee agrees to indemnify, defend and hold harmless the
Franchisor, its subsidiaries and affiliates, and their respective shareholders,
directors, officers, employees, agents, successors and assignees, (the
"Indemnified Parties") against, and to reimburse them for all claims,
obligations and damages described in this Section 19.3, any and all third party
obligations described in Section 19.2 and any and all claims and liabilities
directly or indirectly arising out of the operation of the PAK MAIL Center or
arising out of the use of the Marks and System in any manner not in accordance
with this Agreement. For purposes of this indemnification, claims shall mean and
include all obligations, actual and consequential damages and costs reasonably
incurred in the defense of any claim against the Indemnified Parties, including,
without limitation, reasonable accountants', attorneys' and expert witness fees,
costs of investigation and proof of facts, court costs, other litigation
expenses and travel and living expenses. The Franchisor shall have the right to
defend any such claim against it. This indemnity shall continue in full force
and effect subsequent to and notwithstanding the expiration or termination of
this Agreement.

                                       26

<PAGE>

                           20. RESTRICTIVE COVENANTS

20.1.  Non-Competition During Term.
       ----------------------------

       The Franchisee acknowledges that, in addition to the license of the Marks
hereunder, the Franchisor has also licensed commercially valuable information
which comprises and is a part of the System, including without limitation,
operations, marketing, advertising and related information and materials and
that the value of this information derives not only from the time, effort and
money which went into its compilation, but from the usage of the same by all the
franchisees of the Franchisor using the Marks and System. The Franchisee
therefore agrees that other than the PAK MAIL Center licensed herein or
authorized by separate agreement with the Franchisor, neither the Franchisee nor
any of the Franchisee's officers, directors, shareholders or partners, nor any
member of his or their immediate families, shall during the term of this
Agreement:

              a. have any direct or indirect controlling interest as a disclosed
       or beneficial owner in a "Competitive Business" as defined below;

              b. perform services as a director, officer, manager, employee,
       consultant, representative, agent or otherwise for a Competitive
       Business; or

              c. divert or attempt to divert any business related to, or any
       customer or account of the PAK MAIL Center, the Franchisor's business or
       any other PAK MAIL franchisee's business, by direct inducement or
       otherwise, or divert or attempt to divert the employment of any employee
       of the Franchisor or another franchisee licensed by the Franchisor to use
       the Marks and System, to any Competitive Business by any direct
       inducement or otherwise.

       The term "Competitive Business" as used in this Agreement shall mean any
business operating, or granting franchises or licenses to others to operate, a
packaging, crating, freight forwarding and/or mailing business or any similar
business (excluding operating or granting franchises or licenses to others for
PAK MAIL Centers operated under franchise agreements with the Franchisor).
Notwithstanding the foregoing, the Franchisee shall not be prohibited from
owning securities in a Competitive Business if such securities are listed on a
stock exchange or traded on the over-the-counter market and represent 5% or less
of that class of securities issued and outstanding.

20.2.  Post-Termination Covenant Not to Compete.
       -----------------------------------------

       Upon termination or expiration of this Agreement for any reason, the
Franchisee and its officers, directors, shareholders, and/or partners agree
that, for a period of two years commencing on the effective date of termination
or expiration, or the date on which the Franchisee ceases to conduct business,
whichever is later, neither Franchisee nor its officers, directors,
shareholders, and/or partners shall have any direct or indirect interest
(through a member of any immediate family of the Franchisee or its Owners or
otherwise) as a disclosed or beneficial owner, investor, partner, director,
officer, employee, consultant, representative or agent or in any other capacity
in any Competitive Business, defined in Section 20.1 above, located or operating
within a 25 mile radius of the Franchised Location or within 25 miles of any
other franchised or company-owned PAK MAIL Center. The restrictions of this
Section shall not be applicable to the ownership of shares of a class of
securities listed on a stock exchange or traded on the over-the-counter market
that represent 5% or less of the number of shares of that class of securities

                                       27

<PAGE>

issued and outstanding. The Franchisee and its officers, directors,
shareholders, and/or partners expressly acknowledge that they possess skills and
abilities of a general nature and have other opportunities for exploiting such
skills. Consequently, enforcement of the covenants made in this Section will not
deprive them of their personal goodwill or ability to earn a living.

20.3.  Confidentiality of Proprietary Information.
       -------------------------------------------

       The Franchisee shall treat all information it receives which comprises or
is a part of the System licensed hereunder as proprietary and confidential and
will not use such information in an unauthorized manner or disclose the same to
any unauthorized person without first obtaining the Franchisor's written
consent. The Franchisee acknowledges that the Marks and the System have valuable
goodwill attached to them, that the protection and maintenance thereof is
essential to the Franchisor and that any unauthorized use or disclosure of the
Marks and System will result in irreparable harm to the Franchisor.

20.4.  Confidentiality Agreement.
       --------------------------

       The Franchisor reserves the right to require that the Franchisee cause
each of its officers, directors, partners, shareholders, and Principal Operator,
and, if the Franchisee is an individual, immediate family members, to execute a
Nondisclosure and Noncompetition Agreement containing the above restrictions, in
a form approved by the Franchisor.

                                 21. INSURANCE

21.1.  Insurance Coverage.
       -------------------

       The Franchisee shall procure, maintain and provide evidence of (i)
comprehensive general liability insurance for the Franchised Location and its
operations with a limit of not less than $1,000,000 combined single limit, or
such greater limit as may be required as part of any lease agreement for the
Franchised Location; (ii) automobile liability insurance covering all employees
of the PAK MAIL Center with authority to operate a motor vehicle in an amount
not less than $1,000,000 or, with the prior written consent of the Franchisor,
such lesser amount as may be available at a commercially reasonable rate, but in
no event less than any statutorily imposed minimum coverage; (iii) unemployment
and worker's compensation insurance with a broad form all-states endorsement
coverage sufficient to meet the requirements of the law; and (iv) all-risk
personal property insurance in an amount equal to at least 100% of the
replacement costs of the contents and tenant improvements located at the PAK
MAIL Center. All of the required policies of insurance shall name the Franchisor
as an additional named insured and shall provide for a 30 day advance written
notice to the Franchisor of termination, amendment or cancellation.

21.2.  Proof of Insurance Coverage.
       ----------------------------

       The Franchisee will provide proof of insurance to the Franchisor prior to
commencement of operations at its PAK MAIL Center. This proof will show that the
insurer has been authorized to inform the Franchisor in the event any policies
lapse or are cancelled. The Franchisor has the right to change the minimum
amount of insurance the Franchisee is required to maintain by giving the
Franchisee prior reasonable notice, giving due consideration to what is
reasonable and customary in the similar business. Noncompliance with the
insurance provisions set forth herein shall be deemed a material breach of this
Agreement; in the event of any lapse in insurance coverage, in addition to all
other remedies, the Franchisor shall have the right to demand that the
Franchisee cease operations of the PAK MAIL Centers until coverage is
reinstated, or, in the alternative, pay any delinquencies in premium payments
and charge the same back to the Franchisee.

                                       28

<PAGE>

                          22. MISCELLANEOUS PROVISIONS

22.1.  Governing Law/Consent to Venue and Jurisdiction.
       ------------------------------------------------

       Except to the extent governed by the United States Trademark Act of 1946
(Lanham Act, 15 U.S.C. Sections 1051 et seq.) or other federal law, this
Agreement shall be interpreted under the laws of the state of Colorado and any
dispute between the parties shall be governed by and determined in accordance
with the substantive laws of the state of Colorado, which laws shall prevail in
the event of any conflict of law. The Franchisee and the Franchisor have
negotiated regarding a forum in which to resolve any disputes which may arise
between them and have agreed to select a forum in order to promote stability in
their relationship. Therefore, if a claim is asserted in any legal proceeding
involving the Franchisee, its officers or directors (collectively, "Franchisee
Affiliates") and the Franchisor, its officers, directors or sales employees
(collectively, "Franchisor Affiliates") both parties agree that the exclusive
venue for disputes between them shall be in the state and federal courts of
Colorado and each waive any objection either may have to the personal
jurisdiction of or venue in the state and federal courts of Colorado. The
Franchisor, the Franchisor Affiliates, the Franchisee and the Franchisee
Affiliates each waive their rights to a trial by jury.

22.2.  Modification.
       -------------

       The Franchisor and/or the Franchisee may modify this Agreement only upon
execution of a written agreement between the two parties. The Franchisee
acknowledges that the Franchisor may modify its standards and specifications and
operating and marketing techniques set forth in the Operations Manual
unilaterally under any conditions and to the extent in which the Franchisor, in
its sole discretion, deems necessary to protect, promote, or improve the Marks
and the quality of the System, but under no circumstances will such
modifications be made arbitrarily without such determination.

22.3.  Entire Agreement.
       -----------------

       This Agreement, including all exhibits and addenda, contains the entire
agreement between the parties and supersedes any and all prior agreements
concerning the subject matter hereof. The Franchisee agrees and understands that
the Franchisor shall not be liable or obligated for any oral representations or
commitments made prior to the execution hereof or for claims of negligent or
fraudulent misrepresentation and that no modifications of this Agreement shall
be effective except those in writing and signed by both parties. The Franchisor
does not authorize and will not be bound by any representation of any nature
other than those expressed in this Agreement. The Franchisee further
acknowledges and agrees that no representations have been made to it by the
Franchisor regarding projected sales volumes, market potential, revenues,
profits of the Franchisee's PAK MAIL Center, or operational assistance other
than as stated in this Agreement or in any disclosure document provided by the
Franchisor or its representatives.

22.4.  Delegation by the Franchisor.
       -----------------------------

       From time to time, the Franchisor shall have the right to delegate the
performance of any portion or all of its obligations and duties hereunder to
third parties, whether the same are agents of the Franchisor or independent
contractors which the Franchisor has contracted with to provide such services.
The Franchisee agrees in advance to any such delegation by the Franchisor of any
portion or all of its obligations and duties hereunder.

                                       29

<PAGE>

22.5.  Effective Date.
       ---------------

       This Agreement shall not be effective until accepted by the Franchisor as
evidenced by the signing and dating of this Agreement by an officer of the
Franchisor.

22.6.  Review of Agreement.
       --------------------

       The Franchisee acknowledges that it had a copy of this Agreement in its
possession for a period of time not less than ten full business days, during
which time the Franchisee has had the opportunity to submit same for
professional review and advice of the Franchisee's choosing prior to freely
executing this Agreement.

22.7.  Attorneys' Fees.
       ----------------

       In the event of any default on the part of either party to this
Agreement, in addition to all other remedies, the party in default will pay the
aggrieved party all amounts due and all damages, costs and expenses, including
reasonable attorneys' fees, incurred by the aggrieved party in any legal action,
arbitration or other proceeding as a result of such default, plus interest at
the highest rate allowable by law, accruing from the date of such default.

22.8.  Injunctive Relief.
       ------------------

       Nothing herein shall prevent the Franchisor or the Franchisee from
seeking injunctive relief to prevent irreparable harm, in addition to all other
remedies. If the Franchisor seeks an injunction, the Franchisor will not be
required to post a bond or bonds in excess of $500.

22.9.  Payment of Taxes.
       -----------------

       The Franchisee shall reimburse the Franchisor, or its affiliates and
designees, promptly and when due, the amount of all sales taxes, use taxes,
personal property taxes and similar taxes imposed upon, required to be collected
or paid by the Franchisor, or its affiliates or designees, on account of
services or goods furnished by the Franchisor, its affiliates or designees, to
the Franchisee through sale, lease or otherwise, or on account of collection by
the Franchisor of the initial franchise fee, Royalties, Advertising
Contributions or any other payments made by the Franchisee to the Franchisor
required under the terms of this Agreement.

22.10. No Waiver.
       ----------

       No waiver of any condition or covenant contained in this Agreement or
failure to exercise a right or remedy by the Franchisor or the Franchisee shall
be considered to imply or constitute a further waiver by the Franchisor or the
Franchisee of the same or any other condition, covenant, right, or remedy.

22.11. No Right to Set Off.
       --------------------

       The Franchisee shall not be allowed to set off amounts owed to the
Franchisor for Royalties, fees or other amounts due hereunder, against any
monies owed to Franchisee, nor shall the Franchisee in any event withhold such
amounts due to any alleged nonperformance by the Franchisor hereunder, which
right of set off is hereby expressly waived by the Franchisee.

                                       30

<PAGE>

22.12. Invalidity.
       -----------

       If any provision of this Agreement is held invalid by any tribunal in a
final decision from which no appeal is or can be taken, such provision shall be
deemed modified to eliminate the invalid element and, as so modified, such
provision shall be deemed a part of this Agreement as though originally
included. The remaining provisions of this Agreement shall not be affected by
such modification.

22.13. Notices.
       --------

       All notices required to be given under this Agreement shall be given in
writing, by certified mail, return receipt requested, or by an overnight
delivery service providing documentation of receipt, at the address set forth in
the first Section of this Agreement or at such other addresses as the Franchisor
or the Franchisee may designate from time to time, and shall be effectively
given when deposited in the United States mails, postage prepaid, or when
received via overnight delivery, as may be applicable.

22.14. Cumulative Rights.
       ------------------

       The rights and remedies of the Franchisor and the Franchisee hereunder
are cumulative and no exercise or enforcement by the Franchisor or the
Franchisee of any right or remedy hereunder shall preclude the exercise or
enforcement by the Franchisor or the Franchisee of any other right or remedy
hereunder which the Franchisor or the Franchisee is entitled by law to enforce.

22.15. Acknowledgement.
       ----------------

       BEFORE SIGNING THIS AGREEMENT, THE FRANCHISEE SHOULD READ IT CAREFULLY
WITH THE ASSISTANCE OF LEGAL COUNSEL. THE FRANCHISEE ACKNOWLEDGES THAT:

              (A) THE SUCCESS OF THE BUSINESS VENTURE CONTEMPLATED HEREIN
       INVOLVES SUBSTANTIAL RISKS AND DEPENDS UPON THE FRANCHISEE'S ABILITY AS
       AN INDEPENDENT BUSINESS PERSON AND ITS ACTIVE PARTICIPATION IN THE DAILY
       AFFAIRS OF THE BUSINESS, AND

              (B) NO ASSURANCE OR WARRANTY, EXPRESS OR IMPLIED, HAS BEEN GIVEN
       AS TO THE POTENTIAL SUCCESS OF SUCH BUSINESS VENTURE OR THE EARNINGS
       LIKELY TO BE ACHIEVED, AND

              (C) NO STATEMENT, REPRESENTATION OR OTHER ACT, EVENT OR
       COMMUNICATION, EXCEPT AS SET FORTH IN THIS AGREEMENT, AND IN ANY OFFERING
       CIRCULAR SUPPLIED TO THE FRANCHISEE IS BINDING ON THE FRANCHISOR IN
       CONNECTION WITH THE SUBJECT MATTER OF THIS AGREEMENT.

                                       31

<PAGE>

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

PAK MAIL CENTERS OF AMERICA, INC.,           FRANCHISEE
a Colorado corporation

                                             ----------------------------------
                                             (Print Name)

By:
   --------------------------                ----------------------------------
Name:                                        Individually
     ------------------------
Title:                                       Title:
      -----------------------                      ----------------------------
                                             Address:
                                                     --------------------------
                                             City:
                                                  -----------------------------
                                             State:         Zip:
                                                   ---------    ---------------

                                             OR:

                                             (if a corporation or partnership)

                                             Company Name

                                             By:
                                                -------------------------------
                                             Name:
                                                  -----------------------------
                                             Title:
                                                   ----------------------------
                                             Address:
                                                     --------------------------
                                             City:
                                                  -----------------------------
                                             State:         Zip:
                                                   ---------    ---------------

(2/28/03)

                                       32

<PAGE>

                                                                    EXHIBIT I TO
                                                             FRANCHISE AGREEMENT

                  ADDENDUM TO PAK MAIL CENTERS OF AMERICA, INC.
                               FRANCHISE AGREEMENT

     1. Franchised Location and Protected Territory. The Franchised Location,
set forth in Section 3.1 of the Agreement shall be:
                                                   ----------------------------

-------------------------------------------------------------------------------
The Protected Territory described in Section 3.2 of the Agreement, shall be:
                                                                            ---
                                                                              .
------------------------------------------------------------------------------

     OR

     Designated Area. The Franchisor and the Franchisee acknowledge that the
Franchised Location cannot be designated in Section 1 above as a specific
address because the location has not been selected and approved; therefore,
within 90 days following the date of the Agreement, the Franchisee shall take
steps to choose and acquire a location for its PAK MAIL Center within the
following geographic area ("Designated Area"): .

     2. Acknowledgement. By executing this Exhibit and/or the Rider hereto, the
Franchisee acknowledges that the Franchisor's approval of a site does not
constitute a representation or warranty of any kind, express or implied, as to
the suitability of the site for a PAK MAIL Center or for any other purpose and
that the Franchisee's acceptance of a franchise for the operation of a PAK MAIL
Center at the site is based on its own independent investigation of the
suitability of the site.

     Fully executed this        day of                  , 20    .
                         ------        -----------------    ----

PAK MAIL CENTERS OF AMERICA, INC.,           FRANCHISEE
a Colorado corporation

                                             ----------------------------------
                                             (Print Name)

By:
   --------------------------                ----------------------------------
Name:                                        Individually
     ------------------------
Title:                                       Title:
      -----------------------                      ----------------------------
                                             Address:
                                                     --------------------------
                                             City:
                                                  -----------------------------
                                             State:         Zip:
                                                   ---------    ---------------

                                             OR:

                                             (if a corporation or partnership)

                                             Company Name

                                             By:
                                                -------------------------------
                                             Name:
                                                  -----------------------------
                                             Title:
                                                   ----------------------------
                                             Address:
                                                     --------------------------
                                             City:
                                                  -----------------------------
                                             State:         Zip:
                                                   ---------     --------------

<PAGE>

                                                                     EXHIBIT I-1
                                                          TO FRANCHISE AGREEMENT

                      RIDER TO ADDENDUM - LOCATION APPROVAL

     1. Franchised Location. The Franchised Location, set forth in Section 3.1
of the Agreement shall be:
                          ----------------------------------------------------
                                                                              .
------------------------------------------------------------------------------

     2. Legal Address. The business address for any notices mailed pursuant to
Section 22.13 of the Agreement shall be changed to read as follows:
                                                                   -----------
                                                                              .
------------------------------------------------------------------------------

     3. Protected Territory. The Protected Territory described in Section 3.2 of
the Agreement, shall be:
                        -------------------------------------------------------
                                                                              .
-------------------------------------------------------------------------------

     Fully executed this         day of                      , 20       .
                         --------      ----------------------    -------

PAK MAIL CENTERS OF AMERICA, INC.,          FRANCHISEE
a Colorado corporation
                                            -----------------------------------
                                            (Print Name)

By:
   --------------------------               -----------------------------------
Name:                                       Individually
     ------------------------
Title:                                      Title:
      -----------------------                      ----------------------------
                                            Address:
                                                    ---------------------------
                                            City:
                                                 ------------------------------
                                            State:          Zip:
                                                  ----------    ---------------

                                            OR:

                                            (if a corporation or partnership)

                                            Company Name

                                            By:
                                               --------------------------------
                                            Name:
                                                 ------------------------------
                                            Title:
                                                  -----------------------------
                                            Address:
                                                    ---------------------------
                                            City:
                                                 ------------------------------
                                            State:          Zip:
                                                  ----------    ---------------

<PAGE>

                                                                      EXHIBIT II
                                                          TO FRANCHISE AGREEMENT

               GUARANTY AND ASSUMPTION OF FRANCHISEE'S OBLIGATIONS
               ---------------------------------------------------

     In consideration of, and as an inducement to, the execution of the above
Franchise Agreement (the "Agreement") by Pak Mail Centers of America, Inc. (the
"Franchisor"), each of the undersigned hereby personally and unconditionally:

     Guarantees to the Franchisor and its successors and assigns, for the term
     of this Agreement, including renewals thereof, that the franchisee as that
     term is defined in the Agreement ("Franchisee") shall punctually pay and
     perform each and every undertaking, agreement and covenant set forth in the
     Agreement; and

     Agrees to be personally bound by, and personally liable for the breach of,
     each and every provision in the Agreement and all obligations related
     thereto.

Each of the undersigned waives the following:

               1. Acceptance and notice of acceptance by the Franchisor of the
          foregoing undertaking;

               2. Notice of demand for payment of any indebtedness or
          nonperformance of any obligations hereby guaranteed;

               3. Protest and notice of default to any party with respect to the
          indebtedness or nonperformance of any obligations hereby guaranteed;

               4. Any right he or she may have to require that any action be
          brought against Franchisee or any other person as a condition of
          liability; and

               5. Any and all other notices and legal or equitable defenses to
          which he or she may be entitled.

Each of the undersigned consents and agrees that:

               1. His or her direct and immediate liability under this guaranty
          shall be joint and several;

               2. He or she shall render any payment or performance required
          under the Agreement upon demand if Franchisee fails or refuses
          punctually to do so;

               3. Such liability shall not be contingent or conditioned upon
          pursuit by the Franchisor of any remedies against Franchisee or any
          other person; and

               4. Such liability shall not be diminished, relieved or otherwise
          affected by any extension of time, credit or other indulgence which
          the Franchisor may from time to time grant to Franchisee or to any
          other person, including without limitation the acceptance of any
          partial payment or performance, or the compromise or release of any
          claims, none of which shall in any way modify or amend this guaranty,
          which shall be continuing and irrevocable during the term of the
          Agreement, including renewals thereof.

     IN WITNESS WHEREOF, each of the undersigned has affixed his or her
signature effective on the same day and year as the Agreement was executed.

WITNESS                                     GUARANTOR(S)

-----------------------------               -----------------------------------

-----------------------------               -----------------------------------

-----------------------------               -----------------------------------

<PAGE>

                                                                     EXHIBIT III
                                                          TO FRANCHISE AGREEMENT

                             STATEMENT OF OWNERSHIP

Franchisee:
           --------------------------------------------------------------------

Trade Name (if different from above):
                                     ------------------------------------------

-------------------------------------------------------------------------------

                                Form of Ownership
                                   (Check One)

                                                                Limited
   ___Individual    ___ Partnership   ___ Corporation      ___  Liability
                                                                Company

     If a Partnership, provide name and address of each partner showing
percentage owned, whether active in management, and indicate the state in which
the partnership was formed.

     If a Limited Liability Company, provide name and address of each member and
each manager showing percentage owned and indicate the state in which the
Limited Liability Company was formed.

     If a Corporation, give the state and date of incorporation, the names and
addresses of each officer and director, and list the names and addresses of
every shareholder showing what percentage of stock is owned by each.

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

     Franchisee acknowledges that this Statement of Ownership applies to the PAK
MAIL Center authorized under the Franchise Agreement.

     Use additional sheets if necessary. Any and all changes to the above
information must be reported to the Franchisor in writing.

-----------------------------               -----------------------------------
Date                                        Name

<PAGE>

                                                                      EXHIBIT IV
                                                          TO FRANCHISE AGREEMENT

                AUTHORIZATION AGREEMENT FOR PREARRANGED PAYMENTS
                                 (DIRECT DEBITS)

The undersigned depositor ("Depositor") hereby (1) authorizes Pak Mail Centers
of America, Inc. ("Company") to initiate debit entries and/or credit correction
entries to the undersigned's checking and/or savings account indicated below and
(2) authorizes the depository designated below ("Depository") to debit such
account pursuant to Company's instructions. Debit entries shall be limited to
once per month, on or about the 20th day of the month, for past due amounts owed
by Depositor to Company arising from or related to the Franchise Agreement
between Depositor and Company dated ______________, 20____.

-----------------------------               -----------------------------------
Depository                                  Branch

-----------------------------               -----------------------------------
City                                        State                  Zip Code

-----------------------------               -----------------------------------
Bank Transit/ABA Number                                      Account Number

This authority is to remain in full force and effect until Depository has
received joint written notification from Company and Depositor of the
Depositor's termination of such authority in such time and in such manner as to
afford Depository a reasonable opportunity to act on it. Notwithstanding the
foregoing, Depository shall provide Company and Depositor with 30 days' prior
written notice of the termination of this authority. If an erroneous debit entry
is initiated to Depositor's account, Depositor shall have the right to have the
amount of such entry credited to such account by Depository, if (a) within 15
calendar days following the date on which Depository sent to Depositor a
statement of account or a written notice pertaining to such entry or (b) 45 days
after posting, whichever occurs first, Depositor shall have sent to Depository a
written notice identifying such entry, stating that such entry was in error and
requesting Depository to credit the amount thereof to such account. These rights
are in addition to any rights Depositor may have under federal and state banking
laws.

DEPOSITOR (Franchisee/Print Name)           DEPOSITORY (Bank/Print Name)

By:                                         By:
   --------------------------                  --------------------------------
Its:                                        Its:
    -------------------------                   -------------------------------
Date:                                       Date:
     ------------------------                    ------------------------------

<PAGE>

                                                                       EXHIBIT V
                                                          TO FRANCHISE AGREEMENT

                       ADDENDUM TO FRANCHISE AGREEMENT --
                                BUILD-OUT PROGRAM

     THIS ADDENDUM ("Addendum") to the Franchise Agreement dated_______________
__________________, 20____ is made effective as of the same date, by and between
PAK MAIL CENTERS OF AMERICA, INC. ("Franchisor") and
________________________________________________________________ ("Franchisee"),
to supplement and amend certain terms of the Agreement. To the extent not
defined herein, all initial-capitalized references in this Agreement shall have
the same meaning as defined in the Agreement.

                                     PURPOSE

     A. The Agreement grants the Franchisee a franchise for the establishment
and operation of a PAK MAIL Center in a retail location ("Center").

     B. The Franchisor provides or makes available construction, development and
build-out services ("Build-Out Services") to assist qualified franchisees in
constructing, developing and equipping a Center.

     C. The Franchisee desires to obtain the Build-Out Services and the
Franchisor desires to provide or make available the Build-Out Services to the
Franchisee under the terms and conditions which are contained in this Addendum.

     The Franchisor and the Franchisee therefore agree as follows:

     1. Build-Out Services. The Franchisor shall provide or make available,
itself or through arrangements with independent contractors, the following
Build-Out Services to the Franchisee, for the development and construction of
the Center:

          a. Procurement of suitable plans and specifications conforming to the
     Franchisor's requirements for dimensions, exterior design, materials,
     interior design, layout, signs, counters, equipment and decorating for the
     Center, in compliance with applicable ordinances, building codes, permit
     requirements and lease requirements and restrictions.

          b. Obtaining of required construction-related permits and licenses.

          c. Procurement of fixtures, materials, equipment, modular furniture,
     counters and other such materials required for the construction of the
     Center.

          d. Securing of all contractors and/or subcontractors to construct
     improvements and install equipment and fixtures in the Center.

          e. Completion of the construction of required improvements to the
     Center premises and decorate the premises in compliance with the plans and
     specifications, and delivery of the completed Center.

<PAGE>

          f. Furnishing and installing the required signage for the Center, if
     mutually agreed to by the parties.

          g. Furnishing and installing certain optional equipment, if mutually
     agreed to by the parties.

     2. Commencement of Build-Out Services. The Franchisor shall not be
obligated to commence the Build-Out Services until the Franchisee submits an
executed lease or other authority ("Lease") to occupy the location for the
Center, which Lease has been previously approved by the Franchisor, and pays the
first installment of the costs for build-out, as prescribed in Section 4.a below
("Start Date").

     3. Completion of Build-Out Obligations. Conditional upon the timely payment
of the costs for build-out, an estimate of which have been acknowledged and
agreed to by the parties in writing ("Build-Out Costs"), and submission of an
executed Lease for the location of the Center, the Franchisor agrees to use its
best efforts to complete development of and have the Center ready to open and
commence the operation of business within a reasonable time after the Franchisor
obtains possession of the premises, as may be necessary, and to obtain all
required construction permits.

     4. Build-Out Costs and Additional Expenses. The Build-Out Costs shall be
calculated in the Build-Out Schedule and executed by the Franchisor and the
Franchisee no later than the Start Date. The Franchisee acknowledges that the
Build-Out Costs do not include other charges, costs and expenses for which the
Franchisee is responsible and liable, such as construction extras, landlord
chargebacks and additional costs and expenses as may be incurred due to the
Franchisee's failure to tender the Build-Out Costs as required by this
Agreement. The Franchisee acknowledges that the Build-Out Costs include a fee to
the Franchisor, denoted herein as the "Development Fee". In addition:

          a. The Build-Out Costs shall be paid prior to the commencement of the
     Build-Out Services. The Franchisee acknowledges and understands that
     construction of the Center by the Franchisor will not begin until the
     Build-Out Costs have been paid to the Franchisor in full; provided,
     however, upon receipt by the Franchisor of evidence of a binding finance
     commitment from a third party to the Franchisee, the Franchisor may elect,
     in its sole discretion, to commence construction of the Center without
     receiving payment of all of the Build-Out Costs and/or to otherwise vary
     the payment schedule for the Build-Out Costs.

          b. The Franchisee is solely and exclusively responsible and liable for
     and shall pay when due all sales, use, property or other taxes (including
     any penalties and interest) owed due to the construction of the Center, the
     improvement of the premises where the Center is located and the purchase of
     all materials, equipment, fixtures, furniture, labor, or other items
     utilized in the development and/or construction of the Center.

          c. To the extent not covered by the Build-Out Costs, the Franchisee
     shall be responsible for and shall pay when due all other costs and
     expenses incurred in the development of the Center.

          d. Franchisee grants to Franchisor a Security Interest in all
     equipment, supplies, furniture and inventory located at the Center until
     such time as full payment is received by Franchisor and all third parties
     for the Build-Out Services provided.

                                       2

<PAGE>

          e. The Franchisee acknowledges and agrees that the actual cost of the
     build-out shall be computed upon completion of the Build-Out Services and
     the Development Fee as estimated in writing shall be adjusted to reflect
     the actual cost of the build-out of the Center.

     5. Control of Build-Out. The Franchisee acknowledges that the development
of the Center, all design changes, modifications to the Center design, all
construction issues, trade fixture and equipment changes, and all other matters
related to the development of the Center and the construction thereof, shall be
within the sole discretion of the Franchisor. The Center shall be turned over to
Franchisee ready to open for business, subject to a punch list of items to be
corrected within 60 days of the turnover to the Franchisee. Franchisee shall be
responsible and liable for obtaining all business licenses, permits and the like
not related to construction, required by state or local authorities for the
operation of the Center.

     6. Conversion and Design, Signs, Equipment and Permits and Licenses.
Sections 5.3, 5.4, 5.5 and 5.6 of the Agreement are amended by adding the
following to the end of each section:

     Notwithstanding the foregoing, the Franchisor acknowledges the necessary
     conversion and design of the location, if any, meets the Franchisor's plans
     and specifications; any signs meet the standards and specifications of the
     Franchisor and comply with applicable mall regulations, local ordinances,
     building codes and zoning regulations; the equipment and POS System meet
     the Franchisor's standards and specifications; and the necessary permits
     and licenses relating to the construction of the Center have been obtained.
     To the extent applicable, however, all of the Franchisee's covenants set
     forth in this Section apply to the Franchisee's operation of the Center.

     7. Improvements and Warranties. Within 30 days after completion of the
Center, the Franchisor shall provide the Franchisee a schedule listing all
leasehold improvements, equipment, furniture and fixtures installed in the
Center, and any and all equipment warranties provided by third parties, if not
already forwarded to the Franchisee.

     8. Excuse of Performance. Notwithstanding anything in this Addendum to the
contrary, the obligations of the Franchisor to pursue and complete the Build-Out
Services shall be excused from such delay of performance as may be caused by any
legal directive; intervention of any governmental order, regulation, direction,
request or contingency; acts of God; or any cause beyond the reasonable control
of the Franchisor; provided, however, that such excuse of performance shall be
limited to the period of delay directly related to such cause.

     9. Conflict. In the event of a conflict between the terms of the Agreement
and the terms of this Addendum, the terms of this Addendum shall control.

     10. Effective Date. This Addendum shall not become effective until accepted
by the Franchisor as evidenced by the signing and dating of this Addendum by an
officer of the Franchisor.

                                       3

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Addendum on the
date first set forth above.

PAK MAIL CENTERS OF AMERICA, INC.,          FRANCHISEE
a Colorado corporation
                                            -----------------------------------
                                            (Print Name)

By:
   --------------------------               -----------------------------------
Name:                                       Individually
     ------------------------
Title:                                      Title:
      -----------------------                     -----------------------------
                                            Address:
                                                    ---------------------------
                                            City:
                                                 ------------------------------
                                            State:          Zip:
                                                  ----------    ---------------

                                            OR:

                                            (if a corporation or partnership)

                                            Company Name

                                            By:
                                               --------------------------------
                                            Name:
                                                 ------------------------------
                                            Title:
                                                  -----------------------------
                                            Address:
                                                    ---------------------------
                                            City:
                                                 ------------------------------
                                            State:          Zip:
                                                  ----------    ---------------

(2/28/03)
                                       4

<PAGE>

                                                                      EXHIBIT VI
                                                          TO FRANCHISE AGREEMENT

                                  AMENDMENT TO
                          PAK MAIL FRANCHISE AGREEMENT
                                    (RENEWAL)

     PAK MAIL CENTERS OF AMERICA, INC. ("Franchisor") and _____________________
__________________________________ ("Franchisee") entered into a certain
Franchise Agreement ("Agreement") on ___________, 20__, and desire to supplement
and amend certain terms and conditions of such Agreement by this Amendment to
Franchise Agreement ("Amendment"). The parties therefore agree as follows:

     1.   Initial Franchise Fee. Section 4.1 is deleted in its entirety.

     2.   Approval of Franchised Location. Section 5.1 is deleted in its
          entirety.

     3.   Center Upgrades. Sections 5.3, 5.4 and 5.5 are amended to include the
          following:

          Within _________ (__) days of the date of this Agreement, Franchisee
     agrees to upgrade the PAK MAIL Center as follows__________________________
     __________________________________________________________________________.

     4.   Commencement of Operations. Section 5.7 is deleted in its entirety.

     5.   Initial Training. Sections 6.1 and 6.2 are deleted in their entirety.

     6.   Franchisor's Development Assistance. Section 7.1 is deleted in its
entirety

     7.   Initial Marketing Materials. Section 12.2 is deleted in its entirety.

     8. Release. Franchisee for itself, its successors, assigns, agents,
representatives, employees, officers, directors, managers and owners hereby
fully and forever unconditionally releases and discharges Franchisor and its
affiliates, and their respective current and former successors, assigns, agents,
representatives, employees, officers, directors and shareholders (collectively
referred to as "Franchisor Affiliates") from any and all claims, demands,
obligations, actions, liabilities and damages of every kind and nature
whatsoever, in law or in equity, whether known or unknown to it, which it may
now have against Franchisor or Franchisor Affiliates, or which may hereafter be
discovered, in connection with, as a result of, or in any way arising from, any
relationship or transaction with Franchisor or Franchisor Affiliates, however
characterized or described, which relates in any way to the former PAK MAIL
franchise agreement between Franchisee and Franchisor or the former franchise
relationship, from the beginning of time until the date of this Agreement.

     9. Successor Fee. Franchisor acknowledges receipt of $________ from
Franchisee in payment of the successor franchise fee.

     10. Effectiveness of Agreement. The terms and conditions of this Amendment
are in addition to or in explanation of the existing terms and conditions of the
Agreement and shall prevail over and supersede any inconsistent terms and
conditions thereof.

<PAGE>

         Fully executed this ____ day of ____________________, 20__.

                                            PAK MAIL CENTERS OF AMERICA, INC.

                                            By:
                                               --------------------------------
                                            Title:
                                                  -----------------------------
                                            Date:
                                                 ------------------------------

                                            FRANCHISEE:

                                            By:
                                               --------------------------------
                                            Title:
                                                  -----------------------------
                                            Date:
                                                 ------------------------------

                                            -----------------------------------
                                            Individually

                                            -----------------------------------
                                            Individually

                                       2

<PAGE>

                                                                     EXHIBIT VII
                                                          TO FRANCHISE AGREEMENT

                                  AMENDMENT TO
                          PAK MAIL FRANCHISE AGREEMENT
                                   (TRANSFER)

     PAK MAIL CENTERS OF AMERICA, INC. ("Franchisor") and _____________________
__________________________________ ("Franchisee") entered into a certain
Franchise Agreement ("Agreement") on , 20__, and desire to supplement and amend
certain terms and conditions of such Agreement by this Amendment to Franchise
Agreement ("Amendment"). The parties therefore agree as follows:

     1. Initial Franchise Fee. Section 4.1 is deleted in its entirety.

     2. Approval of Franchised Location. Section 5.1 is deleted in its entirety.

     3. Commencement of Operations. Section 5.7 is deleted in its entirety and
replaced by the following:

          Franchisee agrees that there will be no interruption in the day-to-day
     operation of the PAK MAIL Center due to the change in ownership of the
     Center.

     4. Franchisor's Development Assistance. Section 7.1 is deleted in its
entirety

     5. Initial Marketing Materials. Section 12.2 is deleted in its entirety.

     6. Transfer Fee. Franchisor acknowledges receipt of $_______ in payment of
the transfer fee.

     7. Effectiveness of Agreement. The terms and conditions of this Amendment
are in addition to or in explanation of the existing terms and conditions of the
Agreement and shall prevail over and supersede any inconsistent terms and
conditions thereof.

        Fully executed this ____ day of ____________________, 20__.

                                            PAK MAIL CENTERS OF AMERICA, INC.

                                            By:
                                               --------------------------------
                                            Title:
                                                  -----------------------------
                                            Date:
                                                 ------------------------------

                                            FRANCHISEE:

                                            By:
                                               --------------------------------
                                            Title:
                                                  -----------------------------
                                            Date:
                                                 ------------------------------

                                            -----------------------------------
                                            Individually

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