Document:

Exhibit 10(o) (xiii)

                               SEVERANCE AGREEMENT

      THIS SEVERANCE AGREEMENT (the "Agreement"), is made and entered into this
8th day of July, 2009 (the "Effective Date") by and between Albany International
Corp., a Delaware corporation with its principal place of business at 1373
Broadway, Albany, New York (the "Company"), and Michael Burke ("Employee").

                                    RECITALS

      WHEREAS, Employee has been hired, and has commenced employment with the
Company as an officer in a critical managerial position; and

      WHEREAS, Employee is employed by the Company on an at-will basis; and

      WHEREAS, the Company wishes to encourage Employee's continued service and
dedication to the performance of his or her duties; and WHEREAS, Employee and
the Company each believe it to be in their best interests to provide Employee
with certain severance protections; and

      WHEREAS, in order to induce Employee to remain in the employ of the
Company, and in consideration for Employee's continued service to the Company,
the Company agrees that Employee shall receive the benefits set forth in this
Agreement in the event that Employee's employment with the Company is terminated
in the circumstances described herein.

      NOW, THEREFORE, in consideration of the mutual covenants and promises
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

      1. Employment. The Company hereby agrees to continue Employee's current
employment on an at-will basis in accordance with provisions contained herein
below. Employee shall be based at the

                                     - 1 -
<PAGE>

Company's headquarters in Albany, New York or such other place, as may be
reasonably requested by the Company. Employee shall be subject to the
supervision of, and shall have such authority as is delegated to him or her by
the Chief Executive Officer, or the Board of Directors (the "Board"), as the
case may be.

      2. Effect of Termination Without Cause. If Employee's employment is
terminated by the Company at any time before December 31, 2012 other than for
Cause (as defined herein below), the Company shall pay to Employee, as
severance, his or her gross monthly salary in effect as of the date of such
termination (the "Termination Date"), less applicable withholdings and
deductions required by law, or otherwise agreed to by the parties (the
"Severance Amount") for a period of eighteen (18) months. The number of months
over which the Severance Amount shall be paid shall hereinafter be referred to
as the "Severance Period". The Severance Amount shall be paid in monthly
installments during the Severance Period in accordance with the Company's
customary payroll practices by check or direct deposit until paid in full and
may contain a pro rata payment for any partial month or to account for any
prepaid, but unearned salary. Notwithstanding the foregoing, any severance
payments that otherwise would be due after the second anniversary of the
Termination Date shall be paid in a lump sum on the Company's regular payroll
date immediately preceding said second anniversary, together with any other
severance payment due on that date.

Payment of the severance benefits provided for under this Agreement shall be
contingent upon Employee's timely execution, and nonrevocation, of a General
Release and Separation Agreement substantially in the form attached hereto as
Exhibit A. Payment of the severance benefits provided for under this Agreement
shall not commence prior to the effective date of said General Release and
Separation Agreement.

For the purposes of this Section 2, "Cause" shall be deemed to exist upon:

            (i) the conviction of Employee for, or the entry of a plea of guilty
            or nolo contendere by Employee to, a felony charge or any crime
            involving moral turpitude;

            (ii) Unlawful conduct on the part of Employee that may reasonably be
            considered to reflect negatively on the

                                     - 2 -
<PAGE>

            Company or compromise the effective performance of Employee's duties
            as determined by the Company in its sole discretion;

            (iii) Employee's willful misconduct in connection with his or her
            duties or willful failure to use reasonable effort to perform
            substantially his or her responsibilities in the best interest of
            the Company (including, without limitation, breach by the Employee
            of this Agreement), except in cases involving Employee's mental or
            physical incapacity or disability;

            (iv) Employee's willful violation of the Company's Business Ethics
            Policy or any other Company policy that may reasonably be considered
            to reflect negatively on the Company or compromise the effective
            performance of Employee's duties as determined by the Company in its
            sole discretion;

            (v) fraud, material dishonesty, or gross misconduct in connection
            with the Company perpetrated by Employee;

            (vi) Employee undertaking a position in competition with Company;

            (vii) Employee having caused substantial harm to the Company with
            intent to do so or as a result of gross negligence in the
            performance of his or her duties; or

            (viii) Employee having wrongfully and substantially enriched himself
            or herself at the expense of the Company.

      3. Restrictive Covenants. Employee acknowledges the highly competitive
nature of the Company's business and in recognition thereof agrees as follows:

            A. During the Severance Period, whether on Employee's own behalf or
      on behalf of or in conjunction with any person, firm, partnership, joint
      venture, association, corporation or other business, organization, entity
      or enterprise whatsoever ("Person"), Employee shall not directly or
      indirectly:

            (i) engage in any business which is in competition with the Company
            or any of its subsidiaries or affiliates in the same

                                     - 3 -
<PAGE>

            geographical areas as the Company or any of its subsidiaries or
            affiliates are engaged in their business (a "Competitive Business");

            (ii) enter into the employ of, or render any services to, any Person
            in respect of any Competitive Business;

            (iii) acquire a financial interest in, or otherwise become actively
            involved with, any Competitive Business, directly or indirectly, as
            an individual, partner, shareholder, officer, director, principal,
            agent, trustee or consultant; provided, however, that in no event
            shall ownership of less than 2% of the outstanding capital stock of
            any corporation, in and of itself, be deemed a violation of this
            covenant if such capital stock is listed on a national securities
            exchange or regularly traded in an over-the-counter market; or

            (iv) interfere with, or attempt to interfere with, any business
            relationships (whether formed before or after the Termination Date)
            between the Company or any of its subsidiaries or affiliates and
            their customers, clients, suppliers or investors.

            B. During the Severance Period, whether on Employee's own behalf or
      on behalf of or in conjunction with any Person, Employee shall not
      directly or indirectly:

            (i) solicit or encourage any employee of the Company or any of its
            subsidiaries or affiliates to leave the employment of the Company or
            any of its subsidiaries or affiliates; or

            (ii) hire any such employee who was employed by the Company or any
            of its subsidiaries or affiliates as of the Termination Date or, if
            later, within the six-month period prior to such date of hire.

It is expressly understood and agreed that although the parties consider the
restrictions in this Paragraph 3 to be reasonable, if a final determination is
made by a court of competent jurisdiction that the time or territory or any
other restriction contained in this paragraph is an unenforceable restriction
against the Employee, the provisions of this paragraph shall not be rendered
void but shall be deemed amended to apply as to such maximum time and territory
and to such maximum extent as such court may determine to be enforceable.

                                     - 4 -
<PAGE>

      4. Confidential Information. Employee acknowledges that as a consequence
of his or her employment with the Company proprietary and confidential
information relating to the Company's business may be, or have been, disclosed
to or developed or acquired by the Employee which is not generally known to the
trade or the general public and which is of actual or potential value to the
Company ("Proprietary Information"). Such Proprietary Information includes,
without limitation, information about trade secrets, inventions, patents,
licenses, research projects, costs, profits, markets, sales, customer lists,
proprietary computer programs, proprietary records, and proprietary software;
plans for future development, and any other information not available to the
trade or the general public, including information obtained from or developed in
conjunction with a third party that is subject to a confidentiality or similar
agreement between the Company and such third party. The Employee acknowledges
and agrees that his or her relationship with the Company with respect to such
Proprietary Information has been and shall be fiduciary in nature. Consequently,
during the remainder of, and after, his or her employment by the Company, the
Employee shall not use any Proprietary Information for his or her own benefit,
or for the benefit of any other person or entity or for any other purpose
whatsoever other than the performance of his or her work for the Company, and
the Employee shall maintain all such information in confidence and shall not
disclose any thereof to any person other than employees of the Company
authorized to receive such information. This obligation is in addition to any
similar obligations the Employee may have pursuant to any other agreement,
statute or common-law. Nothing herein, however, shall preclude the Employee from
describing his or her duties with the Company in future job interviews. After
the fifth anniversary of the end of the Employee's employment by the Company,
the term Proprietary Information shall be limited to information constituting
trade secrets of the Company.

      5. Non-disparagement. Employee specifically agrees and covenants that he
or she will not directly or indirectly disparage the Company or any subsidiary
or affiliate of the Company, or any of their respective officers, directors,
employees, attorneys or representatives, or any of their respective products or
services in any manner, at any time, to any person or entity. "Disparage" is
defined as, but not limited to, any utterance whatsoever either verbal, in
writing, by gesture or any behavior of any kind that might tend to or actually
harm or injure the Company or any subsidiary or affiliate of the Company,
whether intended or not.

                                     - 5 -
<PAGE>

      6. Clawback. Employee shall forfeit any unpaid Severance Amount due
pursuant to this Agreement and shall, upon demand, repay any Severance Amounts
already paid hereunder if, after the Termination Date:

            (i) there is a significant restatement of the Company's financial
      results, caused or substantially caused by the fraud or intentional
      misconduct of the Employee;

            (ii) Employee breaches any provision of this Agreement, including,
      without limitation, the covenants set for in paragraphs 3, 4 and 5; or

            (iii) the Company discovers conduct by Employee that would have
      permitted termination for Cause, provided that such conduct occurred prior
      to the Termination Date.

      7. Remedies for Breach. The Company and Employee agree that a breach by
Employee of the provisions of this Agreement may cause irreparable harm to the
Company which will be difficult to quantify and for which money damages will not
be adequate. Accordingly, the Employee agrees that the Company shall have the
right to obtain an injunction against the Employee, without any requirement for
posting any bond or other security, enjoining any such breach or threatened
breach in addition to any other rights or remedies available to the Company on
account of any breach or threatened breach of this Agreement. Employee and the
Company each further agree that if an action is commenced by any party alleging
breach of this Agreement, the non-prevailing party shall be liable to the
prevailing party for any and all available legal and equitable relief, as well
as reasonable attorneys' fees and costs associated with pursuing or defending
such legal action.

      8. Internal Revenue Code Section 409A.

            (a) The payments and the payment schedules set forth herein are
intended to be exempt from, or comply with, Section 409A of the Internal Revenue
Code ("Section 409A"). Accordingly, the Agreement shall be interpreted and
performed so as to be exempt from Section 409A, but if that is not possible, the
Agreement shall be interpreted and performed so as to comply with Section 409A.
In the event any payments or benefits are deemed by the IRS to be non-compliant,
this Agreement, at Employee's option, shall be

                                     - 6 -
<PAGE>

modified, to the extent practical, so as to make it compliant by altering the
payments or the timing of their receipt. The methodology to effect or address
any necessary modifications shall be subject to reasonable and mutual agreement
between the parties.

            (b) It is the intent of the parties that this Agreement provides
payments and benefits that are either exempt from the distribution requirements
of Section 409A of Code, or satisfy those requirements. Any distribution that is
subject to the requirements of Section 409A may only be made based on the
Employee's "separation from service" (as that term is defined under the final
regulations under Section 409A).

            (c) Notwithstanding anything to the contrary in this Agreement, in
the event that (i) a distribution of benefits is subject to Section 409A, (ii)
at the time the distribution would otherwise be made to the Employee, the
Employee is a "specified employee" (as that term is defined in the final
regulations under Section 409A), and (iii) the distribution would otherwise be
made during the 6-month period commencing on the date of the Employee's
separation from service, then such distribution will instead be paid to the
Employee in a lump sum at the end of the 6-month period. The foregoing delay in
the distribution of benefits shall be made in conformance with the final
regulations under Section 409A.

      9. Severability. Employee and the Company intend for every provision of
this Agreement to be fully enforceable. But, if a court with jurisdiction over
this Agreement determines that all or part of any provision of this Agreement is
unenforceable for any reason, the Company and Employee intend for each remaining
provision and part to be fully enforceable as though the unenforceable provision
or part had not been included in this Agreement.

      10. Entire Agreement. This Agreement and the exhibit hereto constitutes
the entire agreement between the parties and supersedes all prior agreements and
understandings, whether written or oral, relating to the subject matter of this
Agreement.

      11. Amendment. This Agreement may be amended or modified only by a written
instrument executed by both the Company and Employee.

                                     - 7 -
<PAGE>

      12. Governing Law. This Agreement shall be construed, interpreted and
enforced in accordance with the laws of the State of New York, except to the
extent preempted by federal law.

      13. Term. This Agreement shall terminate on December 31, 2012; provided,
however, that if Employee's employment is terminated by the Company on or before
December 31, 2012 other than for cause, the parties' respective rights and
obligations under this Agreement shall survive for a period of five (5) years
following the termination of this Agreement.

      14. Successors and Assigns. This Agreement will be binding upon and inure
to the benefit of (a) the heirs, executors, and legal representatives of
Employee upon Employee's death, and (b) any successor of the Company. Any such
successor of the Company will be deemed substituted for the Company under the
terms of this Agreement for all purposes. For this purpose, "successor" means
any person, firm, corporation, or other business entity which at any time,
whether by purchase, merger, or otherwise, directly or indirectly acquires all
or substantially all of the assets or business of the Company. None of the
rights of Employee to receive any payment pursuant to this Agreement may be
assigned or transferred except by will or the laws of descent and distribution.
Any other attempted assignment, transfer, conveyance, or other disposition of
any right of the Employee under this Agreement will be null and void.

      15. Waiver of Jury Trial. The parties agree that they have waived, and
hereby waive, their right to a jury trial with respect to any controversy,
claim, or dispute arising out of or relating to this Agreement, or the breach
thereof, or arising out of or relating to the employment of the Employee, or the
termination thereof, including any claims under federal, state, or local law,
and that any such controversy, claim, or dispute shall be heard and adjudicated
in the state courts of the State of New York, in Albany County.

      16. Non-admission of Liability. This Agreement does not constitute an
admission by the Company of any liability to Employee, and Employee understands
and agrees that the Company denies any such liability to Employee.

      17. Headings. All captions and Section headings used in this Agreement are
for convenient reference only and do not form a part of this Agreement.

                                     - 8 -
<PAGE>

      IN WITNESS WHEREOF, Employee and a duly authorized representative of the
Company have signed this Agreement as of the dates set forth below.

Michael Burke                               Albany International Corp.

/s/ Michael Burke                           By: /s/ Joseph G. Morone
-------------------                         --------------------------

                                            Name:  Joseph G. Morone
                                                   President and CEO

Dated:  July 1, 2009                        Dated: July 2, 2009

                                     - 9 -
<PAGE>

                                    EXHIBIT A

                    General Release and Separation Agreement

      This General Release and Separation Agreement (the or this "Agreement") is
made and entered into this ____ day of ___________, 20___ by and between Albany
International Corp. (the "Company") and Michael Burke ("Employee").

In consideration of the acknowledgements and mutual covenants hereinafter set
forth, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

      1. Presentation of Agreement.Employee acknowledges that on ____________
___, 20___ he or she was given this Agreement and was afforded _____ days to
consider same.

      2. Legal Advice. Employee was, and hereby is, advised to consult a lawyer
before signing this Agreement.

      3. Acceptance of Agreement. Employee may accept this Agreement only by
signing, dating and delivering the Agreement to the Company (in the manner set
forth in Section 12) on or before the Company's normal close of business on
___________ ___, 20___. Time is of the essence with regard to this Section 3.

      4. Revocation. Employee may revoke this Agreement at any time within seven
(7) days after signing and delivering it to the Company by notifying the Company
in writing (in the manner set forth in Section 12) of Employee's decision to
revoke. Time is of the essence with regard to this Section 4.

      5. Effective Date. The effective date of this Agreement shall be the
eighth (8th) day after Employee signs and delivers it to the Company in
accordance with Section 3 above, unless Employee revokes the Agreement before
then in accordance with Section 4 above. If Employee fails to accept this
Agreement in accordance with Section 3 above, or timely revokes the Agreement in
accordance with Section 4 above, the Agreement will not become effective and
will not be binding on Employee or the Company.

<PAGE>

      6. Termination of Employment.Employee's employment by the Company has been
terminated effective ___________ ____, 20__. The parties agree that said
termination of employment was a termination by the Company other than for Cause
within the meaning of Section 2 of that certain Severance Agreement (the
"Severance Agreement") entered into by and between the parties with an effective
date of July 8, 2009.

      7. Severance Payments. In accordance with, and subject to, the terms of
the Severance Agreement, the Company shall pay to Employee the Severance Amount
as specified in the Severance Agreement.

      8. Employee's Acknowledgement. Employee acknowledges and agrees that,
except for this Agreement, Employee would have no right to receive the benefits
described in Section 7.

      9. Defined Term. As used in this Agreement, the term "Albany" means,
individually and collectively, Albany, each subsidiary and affiliate of Albany,
and their respective employee welfare benefit plans, employee pension benefit
plans, successors and assigns, as well as all present and former shareholders,
directors, officers, fiduciaries, agents, representatives and employees of those
companies and other entities.

      10. General Release. By signing this Agreement Employee immediately gives
up and releases Albany from, and with respect to, any and all rights and claims
that Employee may have against Albany (except as expressly state in subsection
10(c) below), whether or not Employee presently is aware of such rights or
claims or suspects them to exist. In addition, and without limiting the
foregoing:

      (a)   The Employee on behalf of himself or herself, his or her agents,
            spouse, representatives, assignees, attorneys, heirs, executors and
            administrators, fully releases Albany and Albany's past and present
            successors, assigns, parents, divisions, subsidiaries, affiliates,
            officers, directors, shareholders, employees, agents and
            representatives from any and all liability, claims, demands,
            actions, causes of action, suits, grievances, debts, sums of moneys,
            controversies, agreements, promises, damages, back and front pay,
            costs, expenses, attorneys fees, and remedies of any type, which
            Employee now has or hereafter may have, by reason of any matter,
            cause, act or

                                     - 2 -
<PAGE>

            omission arising out of or in connection with Employee's employment
            or the termination of his or her employment with Albany prior to
            Employee signing this Agreement, including, without limiting the
            generality of the foregoing, any claims, demands or actions arising
            under the Age Discrimination in Employment Act of 1967, the Older
            Workers Benefit Protection Act, the Employee Retirement Income
            Security Act of 1974, Title VII of the Civil Rights Act of 1964, the
            Civil Rights act of 1991, the Civil Rights Act of 1866, the
            Rehabilitation Act of 1973, the Americans with Disabilities Act of
            1990, and any other federal, state or local statute, ordinance or
            common law regarding employment, discrimination in employment, or
            the termination of employment. Notwithstanding the foregoing,
            Employee is not waiving any right that cannot, as a matter of law,
            be voluntarily waived, including the right to file a charge or
            complaint with, or participate in the adjudication of charge or
            complaint of discrimination filed with, any federal, state or local
            administrative agency, though Employee expressly waives any right to
            recover any money or obtain any other relief or benefit as a result
            of any complaint or charge being filed with any federal, state or
            local administrative agency.

            The foregoing release includes, but is not limited to, any claim of
            discrimination on the basis of race, sex, religion, marital status,
            sexual orientation, national origin, handicap or disability, age,
            veteran status, special disabled veteran status, citizenship status;
            any other claim based on a statutory prohibition; any claim arising
            out of or related to an express or implied employment contract, any
            other contract affecting terms and conditions of employment, or any
            covenant of good faith and fair dealing; all tort claims; and all
            claims for attorney's fees or expenses.

            The Employee represents that he or she understands the foregoing
            release, that rights and claims under the Age Discrimination in
            Employment Act of 1967, as amended, are among the rights and claims
            against Albany he or she is releasing, and that he or she
            understands that he or she is not releasing any rights or claims
            arising after the date Employee signs this Agreement.

      (b)   If Employee breaches any obligation under this Agreement, Employee
            agrees that Albany shall not be obligated to

                                     - 3 -
<PAGE>

            continue to make payments under Section 7, and that Employee shall
            reimburse Albany for all payments made pursuant to Section 7.

      (c)   Nothing in this Agreement, however, shall be deemed a waiver of any
            vested rights or entitlements Employee may have under any retirement
            or other employee benefit plans administered by Albany. Nor shall
            anything in this Agreement operate to release Albany from its
            obligations under this Agreement.

      11. Non-admission of Liability. This Agreement does not constitute an
admission by Albany of any liability to Employee, and Employee understands and
agrees that Albany denies any such liability to Employee.

      12. Notices. Notices or other deliveries required or permitted to be given
or made under this Agreement by Employee to Albany shall, except to the extent
otherwise required by law, be deemed given or made if delivered by hand or by
express mail or overnight courier service to Albany International Corp., 1373
Broadway, Albany, New York 12204, Attention: _________________.

      13. Headings. All captions and Section headings used in this Agreement are
for convenient reference only and do not form a part of this Agreement.

      IN WITNESS WHEREOF, Employee and a duly authorized representative of the
Company have signed this Agreement as of the dates set forth below.

Michael Burke                               Albany International Corp.

________________________                    By: _______________________

                                            Name:  Joseph G. Morone
                                                   President and CEO

Dated:  ____________, 20___                 Dated: _____________, 20___

                                     - 4 -EXHIBIT 10.1 TO VALSPAR CORPORATION FORM 8-K DATED JUNE 26, 2009

	
 

	
Exhibit
10.1 

	
 

	____________________________________________________________________________

	
 

	
 

	
THREE-YEAR

	
 

	
CREDIT AGREEMENT

	
 

	
dated as of

	
 

	
June 30, 2009

	
 

	
among

	
 

	
THE VALSPAR
 CORPORATION,

	
 

	
The Borrowing
 Subsidiaries

	
Party Hereto,

	
 

	
The Lenders Party
 Hereto

	
 

	
and

	
 

	
WELLS FARGO BANK,
 NATIONAL ASSOCIATION,

	
as Administrative Agent
 and an Issuing Bank,

	
 

	
WACHOVIA BANK, NATIONAL
 ASSOCIATION,

	
as an Issuing Bank,

	
 

	
BANK OF AMERICA, N.A.,

	
as Syndication Agent

	
 

	
DEUTSCHE BANK AG NEW
 YORK BRANCH, and

	
THE BANK OF
 TOKYO-MITSUBISHI UFJ, LTD.,

	
as Documentation Agents

	
 

	___________________________

	
 

	
WACHOVIA CAPITAL
 MARKETS, LLC and BANC OF AMERICA SECURITIES LLC,

	
as Joint Lead Arrangers
 and Joint Bookrunners

	
 

	____________________________________________________________________________

TABLE OF CONTENTS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	
ARTICLE
 I

	
 

	
 

	
 

	
 

	
 

	
DEFINITIONS

	
 

	
 

	
 

	
SECTION 1.01.

	
 

	
Defined Terms

	
 

	
2

	
SECTION 1.02.

	
 

	
Classification of Revolving Loans and Borrowings

	
 

	
21

	
SECTION 1.03.

	
 

	
Terms Generally; Construction

	
 

	
21

	
SECTION 1.04.

	
 

	
Accounting Terms; GAAP

	
 

	
21

	
SECTION 1.05.

	
 

	
Exchange Rates

	
 

	
22

	
SECTION 1.06.

	
 

	
Redenomination of Certain Designated Foreign
 Currencies

	
 

	
22

	
 

	
 

	
 

	
 

	
 

	
ARTICLE
 II

	
 

	
 

	
 

	
 

	
 

	
THE
 CREDITS

	
 

	
 

	
 

	
SECTION 2.01.

	
 

	
Revolving Commitments

	
 

	
23

	
SECTION 2.02.

	
 

	
Revolving Loans and Borrowings

	
 

	
23

	
SECTION 2.03.

	
 

	
Requests for Borrowings

	
 

	
24

	
SECTION 2.04.

	
 

	
[Reserved]

	
 

	
24

	
SECTION 2.05.

	
 

	
Letters of Credit

	
 

	
24

	
SECTION 2.06.

	
 

	
Funding of Borrowings

	
 

	
29

	
SECTION 2.07.

	
 

	
Interest Elections

	
 

	
30

	
SECTION 2.08.

	
 

	
Termination and Reduction of Revolving Commitments

	
 

	
31

	
SECTION 2.09.

	
 

	
Repayment of Revolving Loans; Evidence of Debt

	
 

	
32

	
SECTION 2.10.

	
 

	
Prepayment of Revolving Loans

	
 

	
33

	
SECTION 2.11.

	
 

	
Fees

	
 

	
33

	
SECTION 2.12.

	
 

	
Interest

	
 

	
34

	
SECTION 2.13.

	
 

	
Alternate Rate of Interest; Illegality

	
 

	
35

	
SECTION 2.14.

	
 

	
Increased Costs

	
 

	
36

	
SECTION 2.15.

	
 

	
Break Funding Payments

	
 

	
37

	
SECTION 2.16.

	
 

	
Taxes

	
 

	
38

	
SECTION 2.17.

	
 

	
Payments Generally; Pro Rata Treatment; Sharing of
 Set-offs; Recovery of Payments; Apportionment of Payments

	
 

	
39

	
SECTION 2.18.

	
 

	
Mitigation Obligations; Replacement of Lenders

	
 

	
42

	
SECTION 2.19.

	
 

	
Borrowing Subsidiaries

	
 

	
43

	
SECTION 2.20.

	
 

	
Additional Reserve Costs

	
 

	
44

	
SECTION 2.21.

	
 

	
Foreign Subsidiary Costs

	
 

	
44

	
SECTION 2.22.

	
 

	
Defaulting Lenders, Downgraded Lenders

	
 

	
45

	
SECTION 2.23.

	
 

	
Increase in Revolving Commitments

	
 

	
46

i

	
 

	
 

	
 

	
 

	
 

	
ARTICLE
 III

	
 

	
 

	
 

	
 

	
 

	
REPRESENTATIONS
 AND WARRANTIES

	
 

	
 

	
 

	
 

	
 

	
SECTION 3.01.

	
 

	
Corporate Existence and Power

	
 

	
47

	
SECTION 3.02.

	
 

	
Corporate and Governmental Authorization; No
 Contravention

	
 

	
47

	
SECTION 3.03.

	
 

	
Binding Effect

	
 

	
47

	
SECTION 3.04.

	
 

	
Financial Information

	
 

	
48

	
SECTION 3.05.

	
 

	
No Litigation

	
 

	
48

	
SECTION 3.06.

	
 

	
Compliance with ERISA

	
 

	
48

	
SECTION 3.07.

	
 

	
Compliance with Laws; Payment of Taxes

	
 

	
48

	
SECTION 3.08.

	
 

	
Subsidiaries

	
 

	
49

	
SECTION 3.09.

	
 

	
Investment Company Act

	
 

	
49

	
SECTION 3.10.

	
 

	
[Reserved]

	
 

	
49

	
SECTION 3.11.

	
 

	
Ownership of Property; Liens

	
 

	
49

	
SECTION 3.12.

	
 

	
No Default

	
 

	
49

	
SECTION 3.13.

	
 

	
Full Disclosure

	
 

	
49

	
SECTION 3.14.

	
 

	
Environmental Matters

	
 

	
49

	
SECTION 3.15.

	
 

	
Equity Interests

	
 

	
50

	
SECTION 3.16.

	
 

	
Margin Stock

	
 

	
50

	
SECTION 3.17.

	
 

	
Insolvency

	
 

	
50

	
 

	
 

	
 

	
 

	
 

	
ARTICLE
 IV

	
 

	
 

	
 

	
 

	
 

	
CONDITIONS

	
 

	
 

	
 

	
 

	
 

	
SECTION 4.01.

	
 

	
Effective Date

	
 

	
51

	
SECTION 4.02.

	
 

	
Each Credit Event

	
 

	
52

	
SECTION 4.03.

	
 

	
Initial Borrowing by each Borrowing Subsidiary

	
 

	
53

	
 

	
 

	
 

	
ARTICLE
 V

	
 

	
 

	
 

	
 

	
 

	
COVENANTS

	
 

	
 

	
 

	
 

	
 

	
SECTION 5.01.

	
 

	
Information

	
 

	
53

	
SECTION 5.02.

	
 

	
Inspection of Property, Books and Records

	
 

	
55

	
SECTION 5.03.

	
 

	
Ratio of Consolidated Debt to Consolidated EBITDA

	
 

	
55

	
SECTION 5.04.

	
 

	
Interest Coverage Ratio

	
 

	
55

	
SECTION 5.05.

	
 

	
Restricted Payments

	
 

	
55

	
SECTION 5.06.

	
 

	
Loans or Advances

	
 

	
56

	
SECTION 5.07.

	
 

	
Acquisitions

	
 

	
56

	
SECTION 5.08.

	
 

	
Negative Pledge

	
 

	
56

	
SECTION 5.09.

	
 

	
Maintenance of Existence

	
 

	
57

	
SECTION 5.10.

	
 

	
Dissolution

	
 

	
57

	
SECTION 5.11.

	
 

	
Consolidations, Mergers and Sales of Assets

	
 

	
57

	
SECTION 5.12.

	
 

	
Use of Proceeds

	
 

	
58

	
SECTION 5.13.

	
 

	
Compliance with Laws; Payment of Taxes

	
 

	
58

	
SECTION 5.14.

	
 

	
Insurance

	
 

	
58

ii

	
 

	
 

	
 

	
 

	
 

	
SECTION 5.15.

	
 

	
Change in Fiscal Year

	
 

	
58

	
SECTION 5.16.

	
 

	
Maintenance of Property

	
 

	
58

	
SECTION 5.17.

	
 

	
Environmental Notices

	
 

	
58

	
SECTION 5.18.

	
 

	
Environmental Matters

	
 

	
59

	
SECTION 5.19.

	
 

	
[Reserved]

	
 

	
59

	
SECTION 5.20.

	
 

	
Transactions with Affiliates

	
 

	
59

	
SECTION 5.21.

	
 

	
Limitation on Subsidiary Debt

	
 

	
59

	
SECTION 5.22.

	
 

	
Subsidiary Guarantors

	
 

	
59

	
 

	
 

	
 

	
 

	
 

	
ARTICLE
 VI

	
 

	
 

	
 

	
 

	
 

	
EVENTS
 OF DEFAULT

	
 

	
 

	
 

	
 

	
 

	
SECTION 6.01.

	
 

	
Events of Default

	
 

	
60

	
SECTION 6.02.

	
 

	
Notice of Default

	
 

	
62

	
 

	
 

	
 

	
ARTICLE
 VII

	
 

	
 

	
 

	
 

	
 

	
THE
 ADMINISTRATIVE AGENT

	
 

	
 

	
 

	
 

	
 

	
SECTION 7.01.

	
 

	
Appointment and Authority

	
 

	
62

	
SECTION 7.02.

	
 

	
Rights as a Lender

	
 

	
63

	
SECTION 7.03.

	
 

	
Exculpatory Provisions

	
 

	
63

	
SECTION 7.04.

	
 

	
Reliance by Administrative Agent

	
 

	
64

	
SECTION 7.05.

	
 

	
Delegation of Duties

	
 

	
64

	
SECTION 7.06.

	
 

	
Resignation of Administrative Agent

	
 

	
65

	
SECTION 7.07.

	
 

	
Non-Reliance on Administrative Agent and Other
 Lenders

	
 

	
65

	
SECTION 7.08.

	
 

	
No Other Duties, Etc

	
 

	
65

	
SECTION 7.09.

	
 

	
Guaranty Matters

	
 

	
65

	
SECTION 7.10.

	
 

	
Issuing Bank

	
 

	
66

	
 

	
 

	
 

	
 

	
 

	
ARTICLE
 VIII

	
 

	
 

	
 

	
 

	
 

	
GUARANTEE

	
 

	
 

	
 

	
 

	
 

	
ARTICLE
 IX

	
 

	
 

	
 

	
 

	
 

	
MISCELLANEOUS

	
 

	
 

	
 

	
 

	
 

	
SECTION 9.01.

	
 

	
Notices

	
 

	
68

	
SECTION 9.02.

	
 

	
Waivers; Amendments

	
 

	
69

	
SECTION 9.03.

	
 

	
Expenses; Indemnity; Damage Waiver

	
 

	
70

	
SECTION 9.04.

	
 

	
Successors and Assigns

	
 

	
71

	
SECTION 9.05.

	
 

	
Survival

	
 

	
74

	
SECTION 9.06.

	
 

	
Counterparts; Integration; Effectiveness

	
 

	
75

	
SECTION 9.07.

	
 

	
Severability

	
 

	
75

	
SECTION 9.08.

	
 

	
Right of Setoff

	
 

	
75

iii

	
 

	
 

	
 

	
 

	
 

	
SECTION 9.09.

	
 

	
Governing Law; Jurisdiction; Consent to Service of
 Process

	
 

	
75

	
SECTION 9.10.

	
 

	
WAIVER OF JURY TRIAL

	
 

	
76

	
SECTION 9.11.

	
 

	
Construction

	
 

	
76

	
SECTION 9.12.

	
 

	
Confidentiality

	
 

	
77

	
SECTION 9.13.

	
 

	
Conversion of Currencies

	
 

	
77

	
SECTION 9.14.

	
 

	
Interest Rate Limitation

	
 

	
78

	
SECTION 9.15.

	
 

	
Release of Subsidiary Guarantors

	
 

	
78

	
SECTION 9.16.

	
 

	
USA Patriot Act

	
 

	
78

	
SECTION 9.17.

	
 

	
No Fiduciary Relationship

	
 

	
78

iv

SCHEDULES:

	
 

	
 

	
 

	
Schedule 1.01

	
—

	
Domestic Material Subsidiaries

	
 

	
 

	
 

	
Schedule 2.01

	
—

	
Revolving Commitments

	
 

	
 

	
 

	
Schedule 2.05

	
—

	
Existing Letters of Credit

	
 

	
 

	
 

	
Schedule 3.08

	
—

	
Subsidiaries

	
 

	
 

	
 

	
Schedule 3.14

	
—

	
Environmental Matters

	
 

	
 

	
 

	
EXHIBITS:

	
 

	
 

	
 

	
 

	
 

	
Exhibit A-1

	
—

	
Form of Borrowing Subsidiary Agreement

	
 

	
 

	
 

	
Exhibit A-2

	
—

	
Form of Borrowing Subsidiary Termination

	
 

	
 

	
 

	
Exhibit B

	
—

	
Form of Assignment and Assumption

	
 

	
 

	
 

	
Exhibit C

	
—

	
Form of Opinion of Lindquist & Vennum, PLLP

	
 

	
 

	
 

	
Exhibit D

	
—

	
Mandatory Costs Rate

	
 

	
 

	
 

	
Exhibit E

	
—

	
Form of Compliance Certificate

	
 

	
 

	
 

	
Exhibit F

	
—

	
Form of Guarantee Agreement

	
 

	
 

	
 

	
Exhibit G

	
—

	
Form of Indemnity, Subrogation and Contribution
 Agreement

i

          THREE-YEAR
CREDIT AGREEMENT dated as of June 30, 2009, among THE VALSPAR
CORPORATION, a Delaware corporation; the BORROWING SUBSIDIARIES from
time to time party hereto; the LENDERS from time to time party hereto; WELLS FARGO
BANK, NATIONAL ASSOCIATION, as Administrative Agent and an Issuing
Bank; WACHOVIA
BANK, NATIONAL ASSOCIATION, as an Issuing Bank; and BANK OF
AMERICA, N.A., as Syndication Agent.

          The
Company has requested the Lenders to extend Revolving Commitments under which
the Borrowers may obtain revolving loans and have letters of credit issued in
an aggregate principal amount at any time outstanding not greater than
US$465,000,000 or the equivalent thereof in certain other currencies, as such
amount may be increased or decreased pursuant to the terms hereof. The proceeds
of the Borrowings hereunder will be used to refinance existing Debt of the
Company and the Subsidiaries and to pay related fees and expenses, as well as
for working capital and general corporate purposes, including the financing of
future acquisitions.

          The
Lenders are willing to establish the credit facilities referred to in the
preceding paragraph upon the terms and subject to the conditions set forth
herein. Accordingly, the parties hereto agree as follows:

ARTICLE
I

Definitions

SECTION
1.01.          Defined
Terms. As used in this Agreement, the following terms have the meanings
specified below:

          “ABR”,
when used in reference to any Revolving Loan or Borrowing, refers to whether
such Revolving Loan, or the Revolving Loans comprising such Borrowing, are
bearing interest at a rate determined by reference to the Alternate Base Rate.

          “Acquisition”
means any transaction pursuant to which the Company or any of the Subsidiaries
directly or indirectly, in its own name or by or through a nominee or an agent
(a) acquires equity Securities (or warrants, options or other rights to
acquire such Securities) of any Person other than the Company or a Person which
is, prior to such acquisition, a Subsidiary of the Company, pursuant to a
solicitation of tenders therefor, or in one or more negotiated block, market or
other transactions not involving a tender offer, or a combination of any of the
foregoing, or (b) makes any Person a Subsidiary of the Company, or causes
any Person other than a Subsidiary to be merged into the Company or any of its
Subsidiaries, in any case pursuant to a merger, purchase of assets or any
reorganization providing for the delivery or issuance to the holders of such
Person’s then outstanding Securities, in exchange for such Securities, of cash
or Securities of the Company or any of its Subsidiaries, or a combination
thereof, or (c) purchases all or substantially all of the business or
assets of any Person or line of business or business unit (or substantially all
of the assets comprising a line of business or business unit) of any Person.

          “Additional
Commitment” has the meaning assigned to such term in Section 2.23(c).

          “Additional
Lender” has the meaning assigned to such term in Section 2.23(a).

          “Adjusted
LIBO Rate” means, with respect to any Eurocurrency Borrowing for any
Interest Period, an interest rate per annum (rounded upwards, if necessary, to
the next 1/100 of 1%) equal to (a) the LIBO Rate for such Interest Period
multiplied by (b) the Statutory Reserve Rate; provided that, with respect
to any Eurocurrency Borrowing denominated in a Designated Foreign Currency for
any Interest Period, Adjusted LIBO Rate means an interest rate per annum
(rounded upwards, if necessary, to the next 1/100 of 1%) equal to the LIBO Rate
for such Interest Period.

          “Administrative
Agent” means Wells Fargo, in its capacity as administrative agent for the
Lenders hereunder appointed under Section 7.1, and its successors and
permitted assigns in such capacity.

          “Administrative
Questionnaire” means an Administrative Questionnaire in a form supplied by
the Administrative Agent.

          “Affiliate”
of any Person means (i) any other Person which directly, or indirectly
through one or more intermediaries, controls such Person, (ii) any other
Person which directly, or indirectly through one or more intermediaries, is
controlled by or is under common control with such Person, or (iii) any
other Person of which such Person owns, directly or indirectly, 20% or more of
the common stock or equivalent Equity Interests. As used herein, the term
“control” means possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through
the ownership of voting securities, by contract or otherwise.

          “Agreement
Currency” has the meaning assigned to such term in Section 9.13(b).

          “Alternate
Base Rate” means, for any day, a rate per annum equal to the greatest of
(a) the Prime Rate in effect on such day, (b) the Federal Funds
Effective Rate in effect on such day plus 1⁄2 of 1% and (c) the Adjusted
LIBO Rate for an Interest Period of one month plus 1.5%. Any change in the
Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Effective
Rate or the Adjusted LIBO Rate shall be effective from and including the
effective date of such change in the Prime Rate, the Federal Funds Effective
Rate or the Adjusted LIBO Rate, respectively.

          “Applicable
Creditor” has the meaning assigned to such term in Section 9.13(b).

          “Applicable
Percentage” means at any time, with respect to any Lender, the percentage
of the total Revolving Commitments represented by such Lender’s Revolving
Commitment at such time, or if the Revolving Commitments have terminated or
expired, the percentage of the total Credit Exposures represented by such
Lender’s Credit Exposures at such time; provided that if at the time of
determination there are no Credit Exposures, the “Applicable Percentage” shall
be the percentage of the total Revolving Commitments most recently in effect
represented by such Lender’s Revolving Commitment most recently in effect.

3

          “Applicable
Rate” means, for any day, with respect to any Revolving Loan, or with
respect to the facility fees payable hereunder, as the case may be, the
applicable rate per annum set forth below under the caption “Eurocurrency
Spread”, “ABR Spread” or “Facility Fee Rate”, as the case may be, based upon
the ratings by Moody’s and S&P, respectively, applicable on such date to
the Index Debt (or, if the Company does not have Index Debt, then based upon
the Company’s corporate credit ratings by Moody’s and S&P):

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Index Debt Ratings:

	
 

	
 

	
Eurocurrency 

 Spread

	
 

	
ABR

 Spread

	
 

	
Facility

 Fee Rate

	
 

	
 

	
Category 1

 A-/A3 or higher

	
 

	
2.25

	
%

	
 

	
1.25

	
%

	
 

	
.25

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Category 2

 BBB+/Baa1

	
 

	
2.375

	
%

	
 

	
1.375

	
%

	
 

	
.375

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Category 3

 BBB/Baa2

	
 

	
2.50

	
%

	
 

	
1.50

	
%

	
 

	
.50

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Category 4

 BBB-/Baa3

	
 

	
2.875

	
%

	
 

	
1.875

	
%

	
 

	
.625

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Category 5

 lower than BBB-/Baa3

	
 

	
3.25

	
%

	
 

	
2.25

	
%

	
 

	
.75

	
%

	
 

          For
purposes of the foregoing, (i) if either Moody’s or S&P shall not have in
effect a rating for the Index Debt or a corporate credit rating for the Company
(other than by reason of the circumstances referred to in the third sentence of
this paragraph), then such rating agency shall be deemed to have established a
rating in Category 5; (ii) if the ratings established or deemed to have been
established by Moody’s and S&P for the Index Debt or the Company’s
corporate credit ratings shall fall within different Categories, the Applicable
Rate shall be based on the higher of the two ratings unless (A) the ratings are
not in two adjacent Categories, in which case the Applicable Rate shall be
determined by reference to the Category one level above the Category
corresponding to the lower of the two ratings, or (B) one of the ratings is in
Category 5, in which case the Applicable Rate shall be determined by reference
to Category 5; and (iii) if the ratings established or deemed to have been
established by Moody’s and S&P for the Index Debt or the Company’s
corporate credit ratings shall be changed (other than as a result of a change
in the rating system of Moody’s or S&P), such change shall be effective as
of the date on which it is first announced by the applicable rating agency.
Each change in the Applicable Rate shall apply during the period commencing on
the effective date of such change and ending on the date immediately preceding
the effective date of the next such change. If the rating system of Moody’s or
S&P shall change, or if either such rating agency shall cease to be in the
business of rating corporate debt obligations, the Borrower and the Lenders
shall negotiate in good faith to amend this definition to reflect such changed
rating system or the unavailability of ratings from such rating agency and,
pending the effectiveness of any such amendment, the Applicable Rate shall be
determined using the rating of such rating agency most recently in effect prior
to such change or cessation.

          “Arrangers”
means Wachovia Capital Markets, LLC and Banc of America Securities LLC and
their respective successors.

4

          “Assignment
and Assumption” means an assignment and assumption entered into by a Lender
and an assignee (with the consent of any party whose consent is required by
Section 9.04), and accepted by the Administrative Agent, in the form of
Exhibit B or any other form approved by the Administrative Agent and
reasonably acceptable to the Company.

          “Availability
Period” means the period from and including the Effective Date to but
excluding the earlier of the Maturity Date and the date of termination of the
Revolving Commitments.

          “Bankruptcy
Event” means the occurrence of an Event of Default pursuant to Section
6.01(g) or Section 6.01(h).

          “Board”
means the Board of Governors of the Federal Reserve System of the United States
of America.

          “Borrower”
means the Company or any Borrowing Subsidiary.

          “Borrowing”
means Revolving Loans of the same Type and currency, made, converted or
continued on the same date and, in the case of Eurocurrency Loans, as to which
a single Interest Period is in effect.

          “Borrowing
Minimum” means (a) in the case of a Borrowing denominated in US Dollars,
US$5,000,000 and (b) in the case of a Borrowing denominated in any Designated
Foreign Currency, 5,000,000 units of such currency.

          “Borrowing
Multiple” means (a) in the case of a Borrowing denominated in US Dollars,
US$1,000,000 and (b) in the case of a Borrowing denominated in any Designated
Foreign Currency, 1,000,000 units of such currency.

          “Borrowing
Request” means a request by the Borrower for a Borrowing in accordance with
Section 2.03.

          “Borrowing
Subsidiary” means, at any time, each of the Subsidiaries that (a) is named
on the signature pages to this Agreement or (b) has been designated as a
Borrowing Subsidiary by the Company pursuant to Section 2.19, other than
any such Subsidiary that has ceased to be a Borrowing Subsidiary as provided in
Section 2.19.

          “Borrowing
Subsidiary Agreement” means a Borrowing Subsidiary Agreement substantially
in the form of Exhibit A-1.

          “Borrowing
Subsidiary Termination” means a Borrowing Subsidiary Termination
substantially in the form of Exhibit A-2.

          “Business
Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in San Francisco, California or New York City are
authorized or required by law to remain closed; provided, that (a) when
used in connection with a Eurocurrency Loan, the term “Business Day”
shall also exclude any day on which banks are not open for dealings in deposits
in the applicable currency in the London interbank market and (b) when used in
connection with a Revolving Loan denominated in Euro, the term “Business Day”
shall also exclude any day on which the TARGET payment system is not open for
the settlement of payments in Euro.

5

          “Calculation
Date” means each of the following: (a) each date of a Borrowing denominated
in a Designated Foreign Currency, (b) each date of a continuation of a
Revolving Loan denominated in a Designated Foreign Currency pursuant to Section
2.07, (c) the last Business Day of each calendar month and (d) each other date
selected by the Administrative Agent.

          “Capital
Stock” means any capital stock of the Company or any Consolidated
Subsidiary (to the extent issued to a Person other than the Company), whether
common or preferred.

          “Cash
Collateral Account” has the meaning assigned to such term in
Section 2.05(j).

          “CERCLA”
means the Comprehensive Environmental Response, Compensation and Liability Act,
42 U.S.C. §§ 9601 et seq. and its implementing regulations and
amendments.

          “CERCLIS”
means the Comprehensive Environmental Response, Compensation and Liability
Information System established pursuant to CERCLA.

          “Change
in Law” means (a) the adoption of any law, rule or regulation after the
date of this Agreement, (b) any change in any law, rule or regulation or in the
interpretation or application thereof by any Governmental Authority after the
date of this Agreement or (c) compliance by any Lender or any Issuing Bank (or,
for purposes of Section 2.14(b), by any lending office of such Lender or
by such Lender’s or such Issuing Bank’s holding company, if any) with any
request, guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement.

          “Code”
means the Internal Revenue Code of 1986, as amended, or any successor Federal
tax code. Any reference to any provision of the Code shall also be deemed to be
a reference to any successor provision or provisions thereof.

          “Company”
means The Valspar Corporation, a Delaware corporation.

          “Consolidated
Debt” means at any date the Debt of the Company and its Consolidated
Subsidiaries (including any Securitization Debt), determined on a consolidated
basis as of such date. 

6

          “Consolidated
EBITDA” for any period means the sum of (a) Consolidated Net Income for
such period, plus (b) to the extent deducted in determining Consolidated Net
Income and without duplication, the sum of (i) Consolidated Interest Expense for
such period, (ii) taxes on income of the Company and its Consolidated
Subsidiaries for such period, (iii) the sum of all depreciation expenses of the
Company and its Consolidated Subsidiaries for such period, (iv) amortization
expenses of the Company and its Consolidated Subsidiaries for such period, (v)
depletion expenses of the Company and its Consolidated Subsidiaries for such
period, and (vi) extraordinary, unusual or non-recurring non-cash losses,
including goodwill impairment or amortization expense and non-cash losses from
the sale, exchange, transfer or other disposition of property of the Company or
its Consolidated Subsidiaries and the related tax effects in accordance with
GAAP for such period minus (c) to the extent included in determining such
Consolidated Net Income, the sum of, on a consolidated basis and without
duplication, (i) the income of any Person (other than a wholly owned Subsidiary
of the Company) in which any Person other than the Company or any of its
Consolidated Subsidiaries has a joint interest or a partnership interest or
other ownership interest, except to the extent of the amount of dividends or
other distributions actually paid to the Company or any of its Consolidated
Subsidiaries by such Person during such period, (ii) gains from the sale,
exchange, transfer or other disposition of property or assets of the Company
and its Consolidated Subsidiaries (other than inventory sold in the ordinary
course of business) during such period, and related tax effects in accordance
with GAAP, (iii) any other extraordinary, unusual or non-recurring gains or
other income not from the continuing operations of the Company and its
Consolidated Subsidiaries during such period, and related tax effects in
accordance with GAAP and (iv) the income of any Subsidiary of the Company to
the extent that the declaration or payment of dividends or similar
distributions by that subsidiary of that income is not at the time permitted by
operation of the terms of its charter or any agreement, instrument, judgment,
decree, order, statute, rule or governmental regulation applicable to that
subsidiary. For the purpose of calculating Consolidated EBITDA for any period,
if during such period the Company or any Subsidiary shall have made an
Acquisition, Consolidated EBITDA for such period shall be calculated after
giving pro forma effect thereto as if such acquisition occurred on the first
day of such period.

          “Consolidated
Interest Expense” means, for any period, all interest, premium payments,
debt discount, fees, charges and related expenses, whether expensed or
capitalized, in respect of Debt of the Company or any of its Consolidated
Subsidiaries outstanding during such period, plus the discount or yield in
respect of Securitization Debt. 

          “Consolidated
Net Income” means, for any period, the Net Income of the Company and its
Consolidated Subsidiaries determined on a consolidated basis, excluding (i)
extraordinary items and (ii) any equity interests of the Company or any
Subsidiary in the unremitted earnings of any Person that is not a Subsidiary.

          “Consolidated
Operating Profits” means, for any period, the Operating Profits of the
Company and its Consolidated Subsidiaries, determined on a consolidated basis
in accordance with GAAP.

          “Consolidated
Subsidiary” means at any date any Subsidiary or other entity the accounts
of which, in accordance with GAAP, would be consolidated with those of the
Company in its consolidated financial statements as of such date.

          “Consolidated
Total Assets” means, at any time, the Total Assets of the Company and its
Consolidated Subsidiaries, determined on a consolidated basis in accordance
with GAAP.

          “Controlled
Group” means all members of a controlled group of corporations and all trades
or businesses (whether or not incorporated) under common control which,
together with the Company, are treated as a single employer under Section 414
of the Code.

7

          “Credit
Exposure” means, with respect to any Lender at any time, the sum of (i) the
US Dollar Equivalent of the principal amounts of such Lender’s Revolving Loans
and (ii) the LC Exposure of such Lender at such time.

          “Debt”
of any Person means at any date, without duplication, (i) all obligations of
such Person for borrowed money, (ii) all obligations of such Person evidenced
by bonds, debentures, notes or other similar instruments, (iii) all obligations
of such Person to pay the deferred purchase price of property or services,
except trade accounts payable arising in the ordinary course of business, but
only if such obligations are, in accordance with GAAP, recorded on such
Person’s financial books as long-term debt, (iv) all obligations of such Person
as lessee under capital leases, (v) all obligations of such Person to reimburse
any bank or other Person in respect of amounts payable under a banker’s
acceptance, (vi) all Redeemable Preferred Stock of such Person, (vii) all
obligations (absolute or contingent) of such Person to reimburse any bank or
other Person in respect of amounts paid under a letter of credit or similar
instrument, (viii) all Debt of others secured by a Lien on any asset of such
Person, whether or not such Debt is assumed by such Person, (ix) all Debt of
others Guaranteed by such Person, (x) the net obligation of such Person with
respect to Hedge Agreements (and for purposes of this Agreement, the net amount
which such Person is obligated to pay under any such agreement upon termination
of such agreement shall be deemed to constitute the principal amount of such
net obligation) and (xi) all Securitization Debt and the gross proceeds from
any similar transaction, regardless of whether such transaction is effected
without recourse to such Person or in a manner that would not otherwise be
reflected as a liability on a balance sheet of such Person in accordance with
GAAP.

          “Default”
means any condition or event which constitutes an Event of Default or which
with the giving of notice or lapse of time or both would, unless cured or
waived in writing, become an Event of Default.

          “Defaulting
Lender” means any Lender, as reasonably determined by the Administrative
Agent, that (i) has failed (which failure has not been cured) to fund any
Revolving Loan or any participation interest in Letters of Credit required to
be made hereunder in accordance with the terms hereof, (ii) has notified the
Company, the Administrative Agent or the Issuing Banks in writing that it does
not intend to comply or is unable to comply with any of its funding obligations
under this Agreement or has made a public statement that it does not intend or
is unable to comply with its funding obligations under this Agreement or
generally under other agreements in which it commits to extend credit, (iii)
has failed, within three Business Days after receipt of a written request from
the Administrative Agent to confirm that it will comply with the terms of this
Agreement relating to its obligation to fund prospective Revolving Loans or
participations in Letters of Credit, (iv) has failed to pay to the
Administrative Agent, any Issuing Bank or any other Lender when due an amount
owed by such Lender to the Administrative Agent, any Issuing Bank or any other
Lender pursuant to the terms of this Agreement, unless such amount is subject to
a good faith dispute or such failure has been cured, or (v) (a) has been or is
the Subsidiary of a Person that has been adjudicated as, or determined by any
Governmental Authority having regulatory authority over such Person or its
assets to be, insolvent or (b) has become the subject of a proceeding under any
other bankruptcy, insolvency or similar law now or hereafter in effect, or has
had a receiver, conservator, trustee or custodian appointed for it, or has
taken any action in furtherance of, or indicating its consent to, approval of
or acquiescence in any such proceeding or appointment or is a Subsidiary of a
Person that has become subject of a proceeding under any bankruptcy, insolvency
or similar law now or hereafter in effect, or has had a receiver, conservator,
trustee or custodian appointed for it, or has taken any action in furtherance
of, or indicating its consent to, approval of or acquiescence in any such
proceeding or appointment; provided that a Lender shall not be a
Defaulting Lender solely by virtue of the ownership or acquisition of any
equity interest in such Lender or a parent company thereof by a governmental
authority or an instrumentality thereof..

8

          “Designated
Foreign Currency” means Sterling, Yen, Euro and Swiss Francs.

          “Domestic
Business Day” means any day except a Saturday, Sunday or other day on which
commercial banks in New York City or San Francisco, California are authorized
or required by law to close.

          “Domestic
Material Subsidiary” means any Material Subsidiary that is a Domestic
Subsidiary.

          “Domestic
Subsidiary” means a Subsidiary incorporated or organized under the laws of
the United States of America, any State or territory thereof or the District of
Columbia.

          “Downgraded
Lender” means any Lender that has a non-credit enhanced senior unsecured
debt rating below investment grade from either Moody’s, S&P or any other
nationally recognized statistical rating organization recognized as such by the
Securities and Exchange Commission.

          “Effective
Date” means the date on which the conditions specified in Section 4.01
are satisfied (or waived in accordance with Section 9.02).

          “EMU
Legislation” means the legislative measures of the European Union for the
introduction of, changeover to or operation of the Euro that apply generally in
the European Union.

          “Environmental
Authority” means any Governmental Authority that exercises any form of
jurisdiction or authority under any Environmental Requirement.

          “Environmental
Authorizations” means all licenses, permits, orders, approvals, notices,
registrations or other legal prerequisites for conducting the business of the
Company or any Subsidiary required by any Environmental Requirement.

          “Environmental
Judgments and Orders” means all judgments, decrees or orders arising from
or in any way associated with any Environmental Requirement, whether or not
entered upon consent or written agreements with an Environmental Authority or
other entity arising from or in any way associated with any Environmental
Requirement, whether or not incorporated in a judgment, decree or order.

          “Environmental
Liabilities” means any liabilities, whether accrued, contingent or
otherwise, arising from or in any way associated with any Environmental
Requirement, Environmental Judgments and Orders, Environmental Notices,
Environmental Proceedings, or Environmental Releases.

9

          “Environmental
Notices” means notice from any Environmental Authority or by any other
Person, of alleged material noncompliance with or material liability under any
Environmental Requirement, including without limitation any complaints,
citations, demands or requests from any Environmental Authority or from any
other person or entity for correction of any violation of any Environmental
Requirement or any investigations concerning any violation of any Environmental
Requirement.

          “Environmental
Proceedings” means any judicial or administrative proceedings to which the
Company or any Subsidiary is a party or to which their respective Properties
are subject, arising from or in any way associated with any Environmental
Requirement.

          “Environmental
Releases” means releases as defined in CERCLA or under any Environmental
Requirement.

          “Environmental
Requirement” means any legal requirement relating to Hazardous Materials or
health, safety or the environment, including but not limited to any such
requirement under CERCLA or similar state legislation and all federal, state
and local laws, ordinances, regulations, orders, writs, decrees, judgments,
injunctions and common law.

          “Equity
Interests” means shares of
Capital Stock, partnership interests, membership interests in a limited
liability company, beneficial interests in a trust or other equity ownership
interests in a person.

          “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time
to time, or any successor law. Any reference to any provision of ERISA shall
also be deemed to be a reference to any successor provision or provisions
thereof.

          “Euro”
or “€” means the single
currency of the European Union as constituted by the Treaty on European Union
and as referred to in the EMU Legislation.

          “Eurocurrency”,
when used in reference to any Revolving Loan or Borrowing, refers to whether
such Revolving Loan, or the Revolving Loans comprising such Borrowing, are
bearing interest at a rate determined by reference to the Adjusted LIBO Rate.

          “Event
of Default” has the meaning assigned to such term in Section 6.01.

          “Excess
Margin Stock” means that portion, if any, of the Margin Stock owned by the
Company and the Subsidiaries that exceeds 25% of the aggregate value (as
determined in accordance with Regulation U) of all assets subject to any
limitation on sale, pledge, or any other restriction hereunder, including
Section 5.08 and Section 5.11.

10

          “Exchange
Rate” means on any day, with respect to any Designated Foreign Currency,
the rate at which such Designated Foreign Currency may be exchanged into US
Dollars, as set forth at approximately 11:00 a.m., London time, on such day on
Bloomberg “BFIX” for such Designated Foreign Currency. In the event that such
rate does not appear on Bloomberg “BFIX”, the Exchange Rate shall be determined
by reference to such other publicly available service for displaying exchange
rates as may be agreed upon by the Administrative Agent and the Company, or, in
the absence of such an agreement, such Exchange Rate shall instead be the
arithmetic average of the spot rates of exchange of the Administrative Agent in
the market where its exchange operations in respect of such Designated Foreign
Currency are then being conducted, at or about 11:00 a.m., Local Time, on such
date for the purchase of US Dollars for delivery two Business Days later; provided
that if at the time of any such determination, for any reason, no such spot
rate is being quoted, the Administrative Agent may use any reasonable method it
deems appropriate to determine such rate, and such determination shall be
conclusive absent manifest error.

          “Excluded
Taxes” means, with respect to the Administrative Agent, any Issuing Bank,
any Lender or any other recipient of any payment to be made by or on account of
any obligation of any Borrower hereunder, (a) income or franchise taxes imposed
on (or measured by) its net income by the United States of America, or by the
jurisdiction under which such recipient is organized or in which its principal
office is located or in which its applicable lending office is located, (b) any
branch profit taxes imposed by the United States of America or any similar tax
imposed by any other jurisdiction described in clause (a) above, (c) in the
case of a Lender (other than a purchaser of a participation pursuant to Section
2.17(c) or an assignee pursuant to a request by the Company under Section
2.18(b)), any withholding tax imposed by the United States of America that is
in effect and would apply to amounts payable to such Lender by the Company or a
Borrower which is a Domestic Subsidiary from an office within such jurisdiction
at the time such Lender becomes a party to this Agreement (or designates a new
lending office), and (d) any withholding tax that is attributable to such
Lender’s failure to comply with Section 2.16(e), except, in the case of clause
(c) above, to the extent that (i) such Lender (or its assignor, if any) shall
have been entitled, at the time it became party to this Agreement or designated
such new lending office, to receive additional amounts with respect to any
withholding tax or (ii) such withholding tax shall have resulted from the
making of any payment to a location other than the office designated by the
Administrative Agent or such Lender for the receipt of payments of the
applicable type.

          “Existing
Credit Agreements” means (a) the Five-Year Credit Agreement dated as of
October 25, 2005 among the Company, the Borrowing Subsidiaries party thereto,
the Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent,
J.P. Morgan Europe Limited, as London Agent, J.P. Morgan Australia Limited, as
Australian Agent, and Barclays Bank PLC as Syndication Agent and (b) the
364-Day Credit Agreement dated as of November 27, 2007 among the Company, the
Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent,
Barclays Bank PLC as Syndication Agent and Bank of America, N.A., Wachovia
Bank, N.A. and Wells Fargo Bank National Association as Co-Documentation
Agents.

          “Existing
LC Reimbursement Agreements” means (a) the Reimbursement and Security
Agreement, dated as of June 1, 1995 between the Company and Wachovia Bank,
National Association in respect of the direct-pay letter of credit issued to
secure payment of the Tax-Exempt Adjustable Mode Industrial Development Revenue
Bonds (The Valspar Corporation Project) Series 1995 in the aggregate principal
amount of $4,500,000 and (b) the Reimbursement and Security Agreement, dated as
of August 1, 1995 between the Company and Wachovia Bank, National Association
in respect of the direct-pay letter of credit issued to secure payment of the Tax-Exempt Adjustable Mode Industrial
Development Revenue Bonds (The Valspar Corporation Project) Series 1995 in the
aggregate principal amount of $8,000,000, as each such agreement has been
amended and restated as of the date hereof and may be further amended,
modified, supplemented, or restated from time to time.

11

          “Existing
Letters of Credit” means those letters of credit set forth on Schedule 2.05
and continued under this Agreement as Letters of Credit issued pursuant to
Section 2.05.

          “Federal
Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight
Federal funds transactions with members of the Federal Reserve System arranged
by Federal funds brokers, as published on the next succeeding Business Day by
the Federal Reserve Bank of New York, or, if such rate is not so published
for any day that is a Business Day, the average (rounded upwards, if necessary,
to the next 1/100 of 1%) of the quotations for such day for such transactions
received by the Administrative Agent from three Federal funds brokers of
recognized standing selected by it.

          “Fee
Letter” means (i) the letter agreement from Wells Fargo and Wachovia
Capital Markets, LLC to the Company and (ii) the letter agreement from Bank of
America, N.A. and Banc of America Securities LLC to the Company, each dated
June 5, 2009, relating to certain fees payable by the Company in respect of the
transactions contemplated by this Agreement, as amended, modified, restated or
supplemented from time to time.

          “Fiscal
Quarter” means any fiscal quarter of the Company.

          “Fiscal
Year” means any fiscal year of the Company.

          “Foreign
Lender” means, as to any Borrower, any Lender that is organized under the
laws of a jurisdiction other than that in which such Borrower is located. For
purposes of this definition, the United States of America, each State thereof
and the District of Columbia shall be deemed to constitute a single
jurisdiction.

          “Foreign
Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.

          “GAAP”
means generally accepted accounting principles in the United States of America.

          “Governmental
Authority” means the government of the United States of America, any other
nation or any political subdivision thereof, whether state or local, and any
agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government.

          “Granting
Lender” shall have the meaning assigned to such term in Section 9.04(h).

12

          “Guarantee”
by any Person means any obligation, contingent or otherwise, of such Person
directly or indirectly guaranteeing any Debt or other obligation of any other
Person and, without limiting the generality of the foregoing, any obligation,
direct or indirect, contingent or otherwise, of such Person (i) to secure,
purchase or pay (or advance or supply funds for the purchase or payment of)
such Debt or other obligation (whether arising by virtue of partnership
arrangements, by agreement to keep-well, to purchase assets, goods, securities
or services, to provide collateral security, to take-or-pay, or to maintain
financial statement conditions or otherwise) or (ii) entered into for the
purpose of assuring in any other manner the obligee of such Debt or other
obligation of the payment thereof or to protect such obligee against loss in
respect thereof (in whole or in part); provided that the term Guarantee
shall not include endorsements for collection or deposit in the ordinary course
of business. The term “Guarantee” used as a verb has a corresponding meaning.

          “Guarantee
Agreement” means the Guarantee Agreement, substantially in the form of
Exhibit F, between the Subsidiary Guarantors and the Administrative Agent for
the benefit of the Lenders.

          “Hazardous
Materials” includes, without limitation, (a) solid or hazardous waste, as
defined in the Resource Conservation and Recovery Act of 1980, 42 U.S.C.
ss. 6901 et seq. and its implementing regulations and amendments, or in
any applicable state or local law or regulation, (b) any “hazardous substance”,
“pollutant” or “contaminant”, as defined in CERCLA, or in any applicable state
or local law or regulation, (c) gasoline, or any other petroleum product or
by-product, including crude oil or any fraction thereof, (d) toxic substances,
as defined in the Toxic Substances Control Act of 1976, or in any applicable
state or local law or regulation and (e) insecticides, fungicides, or
rodenticides, as defined in the Federal Insecticide, Fungicide, and Rodenticide
Act of 1975, or in any applicable state or local law or regulation, as each
such Act, statute or regulation may be amended from time to time.

          “Hedge
Agreement” means any commodity price protection agreement (excluding any
agreement with a supplier, or affiliate of a supplier, of the items or
materials which are the subject of the agreement), interest or foreign currency
rate swap, cap, collar, option, hedge, forward rate or other similar agreement
or arrangement designed to protect against fluctuations in interest rates,
currency exchange rates or spot prices of commodities entered into in the
ordinary course of business and not for speculative purposes.

          “Hedge
Party” means any Lender or any Affiliate of any Lender in its capacity as a
counterparty to any Hedge Agreement with any Borrower or any Subsidiary, or any
former Lender or any Affiliate of any former Lender in its capacity as a
counterparty to any such Hedge Agreement entered into prior to the date such
Person or its Affiliate ceased to be a Lender.

          “Increasing
Lender” has the meaning assigned to such term in Section 2.23(a).

          “Indemnified
Taxes” means Taxes other than Excluded Taxes.

          “Indemnity,
Subrogation and Contribution Agreement” shall mean the Indemnity,
Subrogation and Contribution Agreement, substantially in the form of Exhibit G,
among the Company, the Subsidiary Guarantors and the Administrative Agent.

13

          “Index
Debt” means senior, unsecured, long-term indebtedness for borrowed money of
the Company that is not guaranteed by any other Person (other than a
Subsidiary) or subject to any other credit enhancement.

          “Information
Memorandum” means the Confidential Information Memorandum dated June 2009
distributed to the Lenders, together with the appendices thereto, as amended
through the date hereof.

          “Interest
Election Request” means a request by the relevant Borrower to convert or
continue a Borrowing in accordance with Section 2.07.

          “Interest
Payment Date” means (a) with respect to any ABR Loan, the last day of
each March, June, September and December and (b) with respect to any
Eurocurrency Loan, the last day of the Interest Period applicable to the Borrowing
of which such loan is a part and, in the case of a Eurocurrency Borrowing with
an Interest Period of more than three months’ duration, each day prior to the
last day of such Interest Period that occurs at intervals of three months’
duration after the first day of such Interest Period.

          “Interest
Period” means with respect to any Eurocurrency Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically
corresponding day in the calendar month that is one, two, three or
six months thereafter, as the applicable Borrower may elect; provided,
that (i) if any Interest Period would end on a day other than a Business Day,
such Interest Period shall be extended to the next succeeding Business Day
unless such next succeeding Business Day would fall in the next calendar month,
in which case such Interest Period shall end on the next preceding Business Day
and (ii) any Interest Period that commences on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day
in the last calendar month of such Interest Period) shall end on the last
Business Day of the last calendar month of such Interest Period. For purposes
hereof, the date of a Borrowing initially shall be the date on which such
Borrowing is made and thereafter shall be the effective date of the most recent
conversion or continuation of such Borrowing.

          “Issuing
Bank” means (i) Wells Fargo, in its capacity as the issuer of Letters of
Credit hereunder (other than Existing Letters of Credit), and its successors in
such capacity as provided in Section 2.05(i) and (ii) Wachovia Bank, National Association, solely
in respect of its issuance of the Existing Letters of Credit. Each
Issuing Bank may, in its discretion, arrange for one or more Letters of Credit
to be issued by Affiliates of such Issuing Bank, in which case the term
“Issuing Bank” shall include any such Affiliates with respect to Letters of
Credit issued by such Affiliates.

          “Judgment
Currency” has the meaning assigned to such term in Section 9.13(b).

          “LC
Disbursement” means a payment made by any Issuing Bank in respect of a
Letter of Credit.

          “LC
Exposure” means, at any time, the sum of (a) the aggregate undrawn
amount of all outstanding Letters of Credit at such time plus (b) the
aggregate amount of all LC Disbursements that have not yet been reimbursed by
or on behalf of the applicable Borrower at such time. The LC Exposure of any
Lender at any time shall be such Lender’s Percentage of the aggregate LC
Exposure at such time.

14

          “Lenders”
means the Persons listed on Schedule 2.01 and any other Person that shall
have become a party hereto pursuant to an Assignment and Assumption, other than
any such Person that shall have ceased to be a party hereto pursuant to an
Assignment and Assumption.

          “Letter
of Credit” means (i) any letter of credit issued pursuant to this Agreement
by Wells Fargo on behalf of Lenders holding Revolving Commitments and (ii) the
Existing Letters of Credit.

          “Letter
of Credit Documents” means, with respect to any Letter of Credit,
collectively, such Letter of Credit and any application therefor, the Existing
LC Reimbursement Agreements and any other agreements, instruments, guarantees
or other documents (whether general in application or applicable only to such
Letter of Credit) governing or providing for the rights and obligations of the
parties concerned or at risk with respect to such Letter of Credit.

          “LIBO
Rate” means, with respect to any Eurocurrency Borrowing for any Interest
Period, the rate per annum determined by the Administrative Agent at
approximately 11:00 a.m., London time, on the Quotation Day for such
Interest Period by reference to the British Bankers’ Association Interest
Settlement Rates for deposits in the currency of such Borrowing (as set forth
by any service (including Bloomberg, Reuters and Thomson Financial) selected by
Administrative Agent that has been nominated by the British Bankers’
Association as an authorized information vendor for the purpose of displaying
such rates), for a period equal to such Interest Period; provided that,
to the extent that an interest rate is not ascertainable pursuant to the
foregoing provisions of this definition, the “LIBO Rate” shall be the average
(rounded upward, if necessary, to the next 1/100 of 1%) of the respective
interest rates per annum at which deposits in the currency of such Borrowing
are offered for such Interest Period to major banks in the London interbank market
by Wells Fargo at approximately 11:00 a.m., London time, on the date two
Business Days prior to the beginning of such Interest Period.

          “Lien”
means, with respect to any asset, any mortgage, deed to secure debt, deed of
trust, lien, pledge, charge, security interest, security title, preferential
arrangement which has the practical effect of constituting a security interest
or encumbrance, servitude or encumbrance of any kind in respect of such asset
to secure or assure payment of a Debt or a Guarantee, whether by consensual
agreement or by operation of statute or other law, or by any agreement,
contingent or otherwise, to provide any of the foregoing. For the purposes of
this Agreement, the Company or any Subsidiary shall be deemed to own subject to
a Lien any asset which it has acquired or holds subject to the interest of a
vendor or lessor under any conditional sale agreement, capital lease (but not
an operating lease) or other title retention agreement relating to such asset.

          “Loan
Documents” means this Agreement, each Borrowing Subsidiary Agreement, each
Borrowing Subsidiary Termination, the Guarantee Agreement, the Indemnity,
Subrogation and Contribution Agreement, the Fee Letter, each Letter of Credit
Document and each promissory note delivered pursuant to this Agreement, as such
documents may be amended, modified, supplemented, or restated from time to
time, but specifically excluding any Hedge Agreement to which any Borrower and
any Hedge Party are parties.

15

          “Local
Time” means (a) with respect to a Revolving Loan or Borrowing denominated
in US Dollars, San Francisco time, (b) with respect to a Revolving Loan or
Borrowing denominated in any Designated Foreign Currency, London time and (c)
with respect to an Existing Letter of Credit, Charlotte, North Carolina time.

          “Margin
Stock” means “margin stock” as defined in Regulation T, U or X of the
Board, as in effect from time to time, together with all official rulings and
interpretations issued thereunder.

          “Material
Adverse Effect” means any event, act, condition or occurrence that, alone
or in conjunction with one or more other events, acts, conditions or
occurrences, has resulted or is reasonably likely to result in a material
adverse effect on (a) the financial condition, operations, business or
properties of the Company and the Consolidated Subsidiaries, taken as a whole,
(b) the rights and remedies of the Administrative Agent and the Lenders
under the Loan Documents or the ability of the Company to perform its
obligations under the Loan Documents to which it is a party or (c) the
legality, validity or enforceability of any Loan Document.

          “Material
Subsidiary” means, on any date, any Subsidiary that either (a) had, at the
end of the most recently ended Fiscal Year, assets with a book value greater
than 10% of Consolidated Total Assets at the end of such Fiscal Year (or, with
respect to any Subsidiary that shall have been acquired by the Company since
the end of such Fiscal Year, that had, at the time of such acquisition, assets
with a book value greater than 10% of Consolidated Total Assets at the end of
such Fiscal Year), or (b) contributed more than 5% of Consolidated Operating
Profits for the most recently ended Fiscal Year (or, with respect to any
Subsidiary that shall have been acquired by the Company since the end of such
Fiscal Year, that would have contributed more than 5% of Consolidated Operating
Profits for the entire such Fiscal Year had it been a Subsidiary for the entire
such Fiscal Year, as determined on a pro forma basis in accordance with GAAP); provided,
that if at any time the aggregate Total Assets of all Domestic Subsidiaries
that are not Material Subsidiaries as of the end of the most recently ended
Fiscal Year exceeds 20% of Consolidated Total Assets as of the end of such
Fiscal Year, the Company (or, in the event the Company has failed to do so
within 30 days, the Administrative Agent) shall designate sufficient
Domestic Subsidiaries as “Material Subsidiaries” to eliminate such excess, and
such designated Subsidiaries shall for all purposes of this Agreement
constitute Material Subsidiaries.

          “Maturity
Date” means June 30, 2012.

          “Moody’s”
means Moody’s Investors Service, Inc.

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

          “Net
Income” means, as applied to any Person for any period, the aggregate
amount of net income of such Person, for such period, as determined in
accordance with GAAP.

16

          “Obligations”
means the due and punctual payment of (a) the principal of and premium, if any,
and interest (including interest accruing during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding) on the Revolving Loans made to
each Borrower, when and as due, whether at maturity, by acceleration, upon one
or more dates set for prepayment or otherwise, (b) all payments required to be
made by any Borrower under this Agreement in respect of any Letter of Credit,
when and as due, including payments in respect of reimbursement of LC
Disbursements, interest thereon and obligations to provide cash collateral, (c) all
payment and other obligations owing or payable at any time by the Borrower or
any Subsidiary to any Hedge Party under or in connection with any Hedge
Agreement permitted by this Agreement, and (d) all other monetary obligations,
including fees, costs, expenses and indemnities, whether primary, secondary, direct,
contingent, fixed or otherwise (including monetary obligations incurred during
the pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such proceeding), of
the Company or any other Borrower or Subsidiary Guarantor under this Agreement
or any other Loan Document.

          “OFAC”
means the U.S. Department of the Treasury’s Office of Foreign Assets Control,
and any successor thereto.

          “Operating
Profits” means, as applied to any Person for any period, income from
operations of such Person for such period, as determined in accordance with
GAAP.

          “Other
Taxes” means any and all present or future stamp or documentary taxes or
any other excise or property taxes, charges or similar levies arising from any
payment made hereunder or from the execution, delivery or enforcement of, or
otherwise with respect to, this Agreement or any other Loan Document.

          “PBGC”
means the Pension Benefit Guaranty Corporation referred to and defined in ERISA
and any successor entity performing similar functions.

          “Percentage”
means, with respect to any Lender, the percentage of the total Revolving
Commitments represented by such Lender’s Revolving Commitment. If the Revolving
Commitments have terminated or expired, the Percentages shall be determined
based upon the Revolving Commitments most recently in effect, giving effect to
any assignments.

          “Permitted
Acquisition” means any Acquisition (a) which is of a Person engaged in or
assets used in the same or similar line or lines of business as the Company or
any Consolidated Subsidiaries, and (b) if the aggregate consideration to be
paid by the Company or any Subsidiary in connection with such Acquisition
exceeds US$100,000,000, as to which the Company has delivered to the Lenders a
certificate of the chief financial officer, treasurer or chief accounting
officer of the Company certifying (and, in the case of Sections 5.03, 5.04,
5.08 and 5.11(d), including calculations evidencing) pro-forma compliance with
the terms of this Agreement after giving effect to such Acquisition.

          “Person”
means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other
entity.

          “Plan”
means at any time an employee pension benefit plan which is covered by Title IV
of ERISA or subject to the minimum funding standards under Section 412 of the
Code and is either (i) maintained by a member of the Controlled Group for
employees of any member of the Controlled Group or (ii) maintained pursuant to
a collective bargaining agreement or any other arrangement under which more
than one employer makes contributions and to which a member of the Controlled
Group is then making or accruing an obligation to make contributions or has
within the preceding five plan years made contributions.

17

          “Prepaid Rebates” means any payment made to or
credit allowed to a customer or prospective customer of the Company or any
Subsidiary, or to any affiliate of such customer or prospective customer, in
each case in the ordinary course of the Company’s or such Subsidiary’s business
and pursuant to a written agreement or purchase order, which represents the
prepayment of a rebate, price discount or price reduction on products sold or
to be sold by the Company or such Subsidiary to one or more customers or
prospective customers.

          “Prime
Rate” means the rate of interest per annum publicly announced from time to
time by Wells Fargo as its prime rate in effect at its principal office in San
Francisco; each change in the Prime Rate shall be effective from and including
the date such change is publicly announced as being effective.

          “Properties”
means all real property owned, leased or otherwise used or occupied by the
Company or any Subsidiary, wherever located.

          “Quotation
Day” means, with respect to any Eurocurrency Borrowing and any Interest
Period, the day on which it is market practice in the relevant interbank market
for prime banks to give quotations for deposits in the currency of such
Borrowing for delivery on the first day of such Interest Period. If such
quotations would normally be given by prime banks on more than one day, the
Quotation Day will be the last of such days.

          “Redeemable
Preferred Stock” of any Person means any Equity Interest issued by such
Person which is at any time prior to the Maturity Date either
(i) mandatorily redeemable (by sinking fund or similar payments or otherwise)
or (ii) redeemable at the option of the holder thereof.

          “Register”
has the meaning set forth in Section 9.04(c).

          “Regulations
D, T, U and X” means Regulations D, T, U and X, respectively, of the Board,
and any successor regulations.

          “Related
Parties” means, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, employees, agents,
representatives and advisors of such Person and such Person’s Affiliates.

          “Required
Lenders” means, at any time, Lenders having Credit Exposures and unused
Revolving Commitments representing more than 50% of the sum of the total Credit
Exposures and unused Revolving Commitments at such time.

          “Reset
Date” has the meaning assigned to such term in Section 1.05.

          “Restricted
Payment” means (i) any dividend or other distribution on any Equity
Interest of the Company (except dividends payable solely in Equity Interests)
or (ii) any payment on account of the purchase, redemption, retirement or
acquisition of any Equity Interest of the Company (except Equity Interests
acquired upon the conversion thereof into other Equity Interests), whether now
or hereafter outstanding, or make any other distribution in respect thereof,
either directly or indirectly, whether in cash or property or in obligations of
any Borrower or Subsidiary.

18

          “Revolving
Commitment” means, with respect to each Lender, the commitment of such
Lender set forth on Schedule 2.01 (or in the Assignment and Assumption pursuant
to which such Lender shall have assumed its Revolving Commitment) to make
Revolving Loans pursuant to Section 2.01(a), as such commitment may be
(a) reduced from time to time pursuant to Section 2.08, (b) increased
from time to time pursuant to Section 2.23 and (c) reduced or increased
from time to time pursuant to assignments by or to such Lender pursuant to
Section 9.04. The aggregate amount of the Revolving Commitments on the
date hereof is US$465,000,000.

          “Revolving
Loan” means a loan made by a Lender pursuant to Section 2.01(a). Each
Revolving Loan shall be (i) if denominated in a Designated Foreign
Currency, a Eurocurrency Loan or (ii) if denominated in US Dollars, a
Eurocurrency Loan or an ABR Loan.

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

          “Securitization
Debt” means the aggregate net outstanding paid, directly or indirectly, by
any funding source to a Subsidiary in respect of accounts receivable or
interests therein sold, conveyed, contributed or transferred or pledged
pursuant to the relevant securitization documents (it being the intent of the
parties that the amount of Securitization Debt at any time approximate as
closely as possible the principal amount of Debt that would be outstanding
under the definitive securitization documents as if the same were structured as
a secured lending agreement rather than an agreement providing for the sale,
conveyance, contribution to capital, transfer or pledge of the receivables or
interests therein.)

          “Security”
has the meaning assigned to such term in Section 2(l) of the Securities Act of
1933, as amended.

          “SPC”
shall have the meaning assigned to such term in Section 9.04(h).

          “Statutory
Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus
the aggregate of the maximum reserve percentages (including any marginal,
special, emergency or supplemental reserves) expressed as a decimal established
by the Board to which the Administrative Agent is subject, for eurocurrency
funding (currently referred to as “Eurocurrency Liabilities” in
Regulation D of the Board). Such reserve percentages shall include those
imposed pursuant to such Regulation D. Eurocurrency Loans shall be deemed
to constitute eurocurrency funding and to be subject to such reserve
requirements without benefit of or credit for proration, exemptions or offsets
that may be available from time to time to any Lender under such
Regulation D or any comparable regulation. The Statutory Reserve Rate
shall be adjusted automatically on and as of the effective date of any change
in any reserve percentage.

          “Sterling”
or “£”means the lawful money of the United Kingdom.

19

          “subsidiary”
means, with respect to any Person (the “parent”) at any date, any
corporation or other entity of which equity securities or other ownership
interests having ordinary voting power to elect a majority of the board of
directors or other persons performing similar functions are at the time
directly or indirectly owned by the parent.

          “Subsidiary”
means any subsidiary of the Company.

          “Subsidiary
Guarantor” means (i) each Subsidiary listed on Schedule 1.01 and (ii) each
Subsidiary that becomes a guarantor pursuant to Section 5.22.

          “Swiss
Francs” means the lawful currency of Switzerland.

          “Taxes”
means any and all present or future taxes, levies, imposts, duties, deductions,
charges or withholdings imposed by any Governmental Authority including any
interest, additions to tax or penalties applicable thereto.

          “Third
Parties” means all lessees, sublessees, licensees and other users of the
Properties, excluding those users of the Properties in the ordinary course of
the Company’s or any Subsidiary’s business and on a temporary basis.

          “Total
Assets” of any Person means, at any time, the total assets of such Person,
as set forth or reflected or as should be set forth or reflected on the most
recent balance sheet of such Person, prepared in accordance with GAAP.

          “Transactions”
means the execution, delivery and performance by the Borrowers of the Loan
Documents, the borrowing of Revolving Loans, the use of the proceeds thereof
and the issuance of Letters of Credit hereunder.

          “Type”,
when used in reference to any Revolving Loan or Borrowing, refers to whether
the rate of interest on such Revolving Loan, or on the Revolving Loans comprising
such Borrowing, is determined by reference to the Adjusted LIBO Rate or the
Alternate Base Rate.

          “US
Dollars” or “US$” refers to lawful money of the United States of
America.

          “US
Dollar Equivalent” means, on any date of determination, (a) with respect to
any amount in US Dollars, such amount, and (b) with respect to any amount in
any Designated Foreign Currency, the equivalent in US Dollars of such amount,
determined by the Administrative Agent pursuant to Section 1.05 using the Exchange
Rate with respect to such Designated Foreign Currency at the time in effect
under the provisions of such Section.

          “USA
Patriot Act” means the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001.

          “Wells
Fargo” means Wells Fargo Bank, National Association, and its successors and
assigns.

          “Wholly
Owned Subsidiary” means any Subsidiary all of the Equity Interests of which
(except directors’ qualifying shares) are at the time directly or indirectly
owned by the Company.

20

          “Withdrawal
Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are
defined in Part I of Subtitle E of Title IV of ERISA.

          “Yen”
or “¥”means the lawful money of Japan.

          SECTION
1.02.          Classification
of Revolving Loans and Borrowings. For purposes of this Agreement,
Revolving Loans may be classified and referred to by Type (e.g., a
“Eurocurrency Loan”). Borrowings also may be classified and referred to by Type
(e.g., a “Eurocurrency Borrowing”).

          SECTION
1.03.         Terms Generally;
Construction. 

          (a)          The
definitions of terms herein shall apply equally to the singular and plural
forms of the terms defined. Whenever the context may require, any pronoun shall
include the corresponding masculine, feminine and neuter forms. The words
“include”, “includes” and “including” shall be deemed to be followed by the
phrase “without limitation”. The word “will” shall be construed to have the
same meaning and effect as the word “shall”. Unless the context requires
otherwise (a) any definition of or reference to any agreement, instrument
or other document herein shall be construed as referring to such agreement,
instrument or other document as from time to time amended, supplemented or
otherwise modified (subject to any restrictions on such amendments, supplements
or modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such Person’s successors and assigns,
(c) the words “herein”, “hereof” and “hereunder”, and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to
any particular provision hereof, (d) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement and (e) the
words “asset” and “property” shall be construed to have the same meaning and
effect and to refer to any and all tangible and intangible assets and
properties, including cash, securities, accounts and contract rights.

          (b)          All
references herein to the Lenders or any of them shall be deemed to include the
Issuing Banks unless specifically provided otherwise or unless the context
otherwise requires.

          SECTION
1.04.         Accounting Terms;
GAAP. Except as otherwise expressly provided herein, all terms of an
accounting or financial nature shall be construed in accordance with GAAP, as
in effect from time to time; provided that, if the Company notifies the
Administrative Agent that the Company requests an amendment to any provision
hereof to eliminate the effect of any change occurring after the date hereof in
GAAP or in the application thereof on the operation of such provision (or if
the Administrative Agent notifies the Company that the Required Lenders request
an amendment to any provision hereof for such purpose), regardless of whether
any such notice is given before or after such change in GAAP or in the
application thereof, then such provision shall be interpreted on the basis of
GAAP as in effect and applied immediately before such change shall have become
effective until such notice shall have been withdrawn or such provision amended
in accordance herewith.

21

          SECTION
1.05.          Exchange
Rates.

          (a)          Not
later than 1:00 p.m., San Francisco time, on each Calculation Date, the
Administrative Agent shall (i) determine the Exchange Rate as of such
Calculation Date with respect to each Designated Foreign Currency and
(ii) give notice thereof to the Lenders and the Company. The Exchange
Rates so determined shall become effective on the first Business Day
immediately following the relevant Calculation Date (a “Reset Date”),
shall remain effective until the next succeeding Reset Date, and shall for all
purposes of this Agreement (other than Section 9.13 or any other provision
expressly requiring the use of a current Exchange Rate) be the Exchange Rates
employed in converting any amounts between US Dollars and Designated Foreign
Currencies.

          (b)          Not
later than 5:00 p.m., San Francisco time, on each Reset Date and each date
on which Revolving Loans denominated in any Designated Foreign Currency are
made or are continued for a new Interest Period, the Administrative Agent shall
(i) determine the aggregate amount of the US Dollar Equivalent of the
principal amounts of the Revolving Loans denominated in Designated Foreign
Currencies then outstanding (after giving effect to any Revolving Loans
denominated in Designated Foreign Currencies made or repaid on such date) and
(ii) notify the Lenders and the Company of the results of such determination.

          SECTION
1.06.          Redenomination
of Certain Designated Foreign Currencies.

          (a)          Each
obligation of any party to this Agreement 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 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 Borrowing in the currency of such member
state is outstanding immediately prior to such date, such replacement shall
take effect, with respect to such Borrowing, at the end of the then current
Interest Period.

          (b)          Without
prejudice and in addition to any method of conversion or rounding prescribed by
any EMU Legislation and (i) without limiting the liability of any Borrower
for any amount due under this Agreement and (ii) without increasing any
Revolving Commitment of any Lender, all references in this Agreement to minimum
amounts (or integral multiples thereof) 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, immediately upon such adoption, be
replaced by references to such minimum amounts (or integral multiples thereof)
as shall be specified herein with respect to Borrowings denominated in Euro.

          (c)          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.

22

ARTICLE
II

The
Credits

          SECTION
2.01.          Revolving
Commitments. 

          (a)          Subject
to the terms and conditions set forth herein, each Lender agrees to make
Revolving Loans to the Borrowers from time to time during the Availability
Period in US Dollars or one or more Designated Foreign Currencies in amounts
that will not result in (i) such Lender’s Credit Exposure exceeding its
Revolving Commitment and (ii) the sum of the aggregate Credit Exposures
exceeding the aggregate Revolving Commitments.

          (b)          Within
the foregoing limits, and subject to the terms and conditions set forth herein,
any Borrower may borrow, prepay and reborrow Revolving Loans.

          SECTION
2.02.          Revolving
Loans and Borrowings.

          (a)          Each
Revolving Loan shall be made as part of a Borrowing made by the Lenders ratably
in accordance with their respective Revolving Commitments. The failure of any
Lender to make any Revolving Loan required to be made by it shall not relieve
any other Lender of its obligations hereunder; provided that the
Revolving Commitments of the Lenders are several and no Lender shall be
responsible for any other Lender’s failure to make Revolving Loans as required
hereunder.

          (b)          Subject
to Section 2.13, (i) each Borrowing denominated in a Designated
Foreign Currency shall be comprised entirely of Eurocurrency Loans and
(ii) each Borrowing denominated in US Dollars shall be comprised entirely
of ABR Loans or Eurocurrency Loans as the applicable Borrower may request in
accordance herewith. Each Lender at its option may make any Eurocurrency Loan
by causing any domestic or foreign branch or Affiliate of such Lender to make
such Eurocurrency Loan; provided that any exercise of such option shall
not affect the obligation of any Borrower to repay such Eurocurrency Loan in
accordance with the terms of this Agreement.

          (c)          At
the commencement of each Interest Period for any Borrowing, such Borrowing
shall be in an aggregate amount that is at least equal to the Borrowing Minimum
and an integral multiple of the Borrowing Multiple; provided that an ABR
Borrowing may be in an aggregate amount that is equal to the entire unused
balance of the Revolving Commitments, or that is required to finance the
reimbursement of an LC Disbursement as contemplated by Section 2.05(e).
Borrowings of more than one Type may be outstanding at the same time; provided
that there shall not at any time be more than a total of ten Eurocurrency
Borrowings that are outstanding with different Interest Period termination
dates.

          (d)          Notwithstanding
any other provision of this Agreement, no Borrower shall be entitled to
request, or to elect to convert or continue, any Borrowing if the Interest
Period requested with respect thereto would end after the Maturity Date.

23

          SECTION
2.03.         Requests for
Borrowings. To request a Borrowing, the applicable Borrower, or the Company
on behalf of the applicable Borrower, shall notify the Administrative Agent of
such request by telephone (a) in the case of a Eurocurrency Borrowing
denominated in US Dollars, not later than 11:00 a.m., Local Time, three
Business Days before the date of the proposed Borrowing, (b) in the case
of a Eurocurrency Borrowing denominated in a Designated Foreign Currency, not
later than 11:00 a.m., Local Time, four Business Days before the date of
the proposed Borrowing, or (c) in the case of an ABR Borrowing, not later
than 10:00 a.m., San Francisco time, the Business Day of the proposed
Borrowing. Each such telephonic Borrowing Request shall be irrevocable and shall
be confirmed promptly by hand delivery or telecopy to the Administrative Agent
of a written Borrowing Request in a form approved by the Administrative Agent
and signed by the applicable Borrower, or by the Company on behalf of the
applicable Borrower. Each such telephonic and written Borrowing Request shall
specify the following information in compliance with Section 2.02:

	
 

	
 

	
 

	
          (i)          the
 Borrower requesting such Borrowing (or on whose behalf the Company is
 requesting such Borrowing);

	
 

	
 

	
 

	
          (ii)        the
 currency and aggregate principal amount of the requested Borrowing;

	
 

	
 

	
 

	
          (iii)      the
 date of the requested Borrowing, which shall be a Business Day;

	
 

	
 

	
 

	
          (iv)       whether
 the requested Borrowing is to be an ABR Borrowing or a Eurocurrency
 Borrowing;

	
 

	
 

	
 

	
          (v)         in
 the case of a Eurocurrency Borrowing, the initial Interest Period to be
 applicable thereto, which shall be a period contemplated by the definition of
 the term “Interest Period”; and

	
 

	
 

	
 

	
          (vi)       the
 location and number of the Borrower’s account to which funds are to be
 disbursed, which shall comply with the requirements of Section 2.06.

If no currency is specified with respect to any
requested Eurocurrency Borrowing, then the relevant Borrower shall be deemed to
have selected US Dollars. If no election as to the Type of Borrowing is
specified, then the requested Borrowing shall be (i) in the case of a
Borrowing denominated in US Dollars, an ABR Borrowing and (ii) in the case
of a Borrowing denominated in a Designated Foreign Currency, a Eurocurrency
Borrowing. If no Interest Period is specified with respect to any requested
Eurocurrency Borrowing, then the relevant Borrower shall be deemed to have
selected an Interest Period of one month’s duration. Promptly following receipt
of a Borrowing Request in accordance with this Section, the Administrative
Agent shall advise each Lender that will make a Revolving Loan as part of the
requested Borrowing of the details thereof and of the amount of such Lender’s
Revolving Loan to be made as part of the requested Borrowing.

          SECTION
2.04.          [Reserved].

          SECTION
2.05.          Letters of
Credit. 

          (a)          General.
Subject to the terms and conditions set forth herein, the Company and any other
Borrower that is a Domestic Subsidiary may request the issuance (or the
amendment, renewal or extension) of Letters of Credit denominated in US Dollars
for its own account, in a form reasonably acceptable to the Administrative
Agent and the relevant Issuing Bank, at any time and from time to time from the
Effective Date until the sooner of (i) the Maturity Date and (ii) and the date
of termination of the Revolving Commitments. In the event of any inconsistency
between the terms and conditions of this Agreement and the terms and conditions
of any Letter of Credit Document, the terms and conditions of this Agreement
shall control.

24

          (b)          Notice
of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request
the issuance of a Letter of Credit (or the amendment, renewal or extension of
an outstanding Letter of Credit), the relevant Borrower shall hand deliver or
telecopy (or transmit by electronic communication, if arrangements for doing so
have been approved by the relevant Issuing Bank) to the relevant Issuing Bank
and the Administrative Agent (reasonably in advance of the requested date of
issuance, amendment, renewal or extension) a notice requesting the issuance of
a Letter of Credit, or identifying the Letter of Credit to be amended, renewed
or extended, and specifying the date of issuance, amendment, renewal or
extension (which shall be a Business Day), the date on which such Letter of
Credit is to expire (which shall comply with paragraph (c) of this Section),
the amount of such Letter of Credit, the name and address of the beneficiary
thereof and such other information as shall be necessary to enable the relevant
Issuing Bank to prepare, amend, renew or extend such Letter of Credit. If
requested by the relevant Issuing Bank, such Borrower also shall submit a
letter of credit application on such Issuing Bank’s standard form in connection
with any request for a Letter of Credit. No Issuing Bank shall be under any
obligation to issue, amend, renew or extend any Letter of Credit if:

	
 

	
 

	
 

	
          (i)          after
 giving effect to such issuance, amendment, renewal or extension (i) the
 LC Exposure shall exceed $50,000,000 or (ii) the aggregate Credit
 Exposures shall exceed the aggregate Revolving Commitments;

	
 

	
 

	
 

	
          (ii)        any
order, judgment or decree of any
 Governmental Authority or arbitrator shall purport by its terms to enjoin or
 restrain the issuance, amendment, renewal or extension of such Letter of
 Credit or any requirement of law applicable to such Issuing Bank or any
 Lender or any request or directive (whether or not having the force of law)
 from any Governmental Authority with jurisdiction over it shall prohibit, or
 request that it refrain from, the issuance of letters of credit generally or
 such Letter of Credit in particular or shall impose upon it with respect to
 such Letter of Credit any restriction or reserve or capital requirement (for
 which such Issuing Bank or any Lender is not otherwise compensated) not in effect
 on the Effective Date, or any unreimbursed loss, cost or expense which was
 not applicable, in effect or known to it as of the Effective Date; or 

	
 

	
 

	
 

	
          (iii)      any
 Lender is at such time a Defaulting Lender or Downgraded Lender hereunder, unless
 the Issuing Bank has entered into satisfactory arrangements pursuant to
 Section 2.22 to eliminate its risk with respect to such Lender.

25

          (c)          Expiration
Date. Each Letter of Credit (other than the Existing Letters of Credit) shall
expire at or prior to the close of business on the earlier of (i) the date one
year after the date of the issuance of such Letter of Credit (or, in the case
of any renewal or extension thereof, one year after such renewal or extension)
and (ii) the Maturity Date, provided, however, that a Letter of
Credit (other than an Existing Letter of Credit) may provide by its terms, and
on terms acceptable to the applicable Issuing Bank, for renewal for successive
periods of one year or less (but not beyond the Maturity Date) unless and until
the applicable Issuing Bank shall have delivered prior written notice of
nonrenewal to the beneficiary of such Letter of Credit no later than the time
specified in such Letter of Credit (which the applicable Issuing Bank shall do
only if one or more of the applicable conditions under Section 4.02 is not then
satisfied). Notwithstanding the foregoing, any Existing Letter of Credit may
provide by its terms, and on terms acceptable to applicable Issuing Bank, for
renewal for successive periods of thirteen months or less unless and until the
applicable Issuing Bank shall have delivered a notice of nonrenewal to the
beneficiary of such Existing Letter of Credit no later than the time specified
in such Existing Letter of Credit (or applicable Letter of Credit Document); provided
that the applicable Issuing Bank may deliver such notice of nonrenewal in its
sole discretion and no course of dealing or other circumstance shall require
such Issuing Bank to extend or renew any Existing Letter of Credit.

          (d)          Participations.
By the issuance of a Letter of Credit (or an amendment to a Letter of Credit
increasing the amount thereof) and without any further action on the part of
any Issuing Bank or the Lenders, each Issuing Bank hereby grants to each
Lender, and each Lender hereby acquires from such Issuing Bank, a participation
in the Letter of Credit issued by such Issuing Bank equal to such Lender’s
Percentage of the aggregate amount available to be drawn under such Letter of
Credit. In consideration and in furtherance of the foregoing, each Lender
hereby absolutely and unconditionally agrees to pay to the Administrative
Agent, for the account of the relevant Issuing Bank, such Lender’s Percentage
of each LC Disbursement made by such Issuing Bank and not reimbursed by the
relevant Borrower on the date due as provided in paragraph (e) of this Section,
or of any reimbursement payment required to be refunded to the relevant
Borrower for any reason. Each Lender acknowledges and agrees that its
obligation to acquire participations pursuant to this paragraph in respect of
Letters of Credit is absolute and unconditional and shall not be affected by
any circumstance whatsoever, including any amendment, renewal or extension of
any Letter of Credit or the occurrence and continuance of a Default or
reduction or termination of the Revolving Commitments, and that each such
payment shall be made without any offset, abatement, withholding or reduction
whatsoever.

26

          (e)          Reimbursement.
If any Issuing Bank shall make any LC Disbursement in respect of a Letter of
Credit, the relevant Borrower shall reimburse such LC Disbursement by paying to
the applicable Issuing Bank an amount equal to such LC Disbursement not later
than 2:00 p.m., San Francisco time (or 2:00 p.m., Charlotte, North Carolina
time, in the case of any Existing Letter of Credit), on the date that such LC
Disbursement is made, if such Borrower shall have received notice of such LC
Disbursement prior to 10:00 a.m., San Francisco time (or 10:00 a.m., Charlotte,
North Carolina time, in the case of any Existing Letter of Credit), on such
date, or, if such notice has not been received by such Borrower prior to such
time on such date, then not later than 2:00 p.m., San Francisco time (or 2:00
p.m., Charlotte, North Carolina time, in the case of any Existing Letter of
Credit), on (i) the Business Day that such Borrower receives such notice, if
such notice is received prior to 10:00 a.m., San Francisco time (or 10:00 a.m.,
Charlotte, North Carolina time, in the case of any Existing Letter of Credit),
on the day of receipt, or (ii) the Business Day immediately following the day
that such Borrower receives such notice, if such notice is not received prior
to such time on the day of receipt; provided that the relevant Borrower
may, subject to the conditions to borrowing set forth herein, request in
accordance with Section 2.03 that such payment be financed with an ABR
Borrowing in an equivalent amount and, to the extent so financed, the relevant
Borrower’s obligation to make such payment shall be discharged and replaced by
the resulting ABR Borrowing. If the relevant Borrower fails to make such
payment when due, the Administrative Agent shall notify each Lender of the
applicable LC Disbursement, the payment then due from such Borrower in respect
thereof and such Lender’s Percentage thereof. Promptly following receipt of
such notice, each Lender shall pay to the Administrative Agent its Percentage
of the payment then due from such Borrower, in the same manner as provided in
Section 2.06 with respect to Revolving Loans made by such Lender (and Section
2.06 shall apply, mutatis mutandis, to the payment obligations of the Lenders),
and the Administrative Agent shall promptly pay to the relevant Issuing Bank
the amounts so received by it from the Lenders. Promptly following receipt by
the Administrative Agent of any payment pursuant to this paragraph, the
Administrative Agent shall distribute such payment to the Lenders and the
Issuing Banks as their interests may appear. Any payment made by a Lender
pursuant to this paragraph to reimburse any Issuing Bank for any LC
Disbursement (other than the funding of ABR Loans as contemplated above) shall
not constitute a Revolving Loan and shall not relieve the relevant Borrower of
its obligation to reimburse such LC Disbursement.

          (f)          Obligations
Absolute. A Borrower’s obligation to reimburse LC Disbursements as provided
in paragraph (e) of this Section shall be absolute, unconditional and
irrevocable, and shall be performed strictly in accordance with the terms of
this Agreement under any and all circumstances whatsoever and irrespective of
(i) any lack of validity or enforceability of any Letter of Credit or this
Agreement, or any other Loan Document, or any term or provision herein or
therein, (ii) any draft or other document presented under a Letter of Credit
proving to be forged, fraudulent or invalid in any respect or any statement
therein being untrue or inaccurate in any respect, (iii) payment by the
relevant Issuing Bank under a Letter of Credit against presentation of a draft
or other document that does not comply with the terms of such Letter of Credit
or (iv) any other event or circumstance whatsoever, whether or not similar to
any of the foregoing, that might, but for the provisions of this Section,
constitute a legal or equitable discharge of, or provide a right of set-off
against, such Borrower’s obligations hereunder. None of the Administrative
Agent, the Lenders or any Issuing Bank, or any of their Related Parties, shall
have any liability or responsibility by reason of or in connection with the
issuance or transfer of any Letter of Credit or any payment or failure to make
any payment thereunder (irrespective of any of the circumstances referred to in
the preceding sentence), or any error, omission, interruption, loss or delay in
transmission or delivery of any draft, notice or other communication under or
relating to any Letter of Credit (including any document required to make a
drawing thereunder), any error in interpretation of technical terms or any
consequence arising from causes beyond the control of such Issuing Bank; provided
that the foregoing shall not be construed to excuse any Issuing Bank from
liability to a Borrower to the extent of any direct damages (as opposed to
special, indirect, consequential or punitive damages, claims in respect of
which are hereby waived by the Borrowers to the extent permitted by applicable
law) suffered by such Borrower that are caused by such Issuing Bank’s failure
to exercise the agreed standard of care (as set forth below) when determining
whether drafts and other documents presented under a Letter of Credit comply
with the terms thereof. The parties hereto expressly agree that, in the absence
of gross negligence or willful misconduct on the part of the relevant Issuing
Bank (as finally determined by a court of competent jurisdiction), such Issuing
Bank shall be deemed to have exercised the agreed standard of care in each such
determination. In furtherance of the foregoing and without limiting the
generality thereof, the parties agree that, with respect to documents presented
which appear on their face to be in substantial compliance with the terms of a
Letter of Credit, the relevant Issuing Bank may, in its sole discretion, either
accept and make payment upon such documents without responsibility for further
investigation, regardless of any notice or information to the contrary, or
refuse to accept and make payment upon such documents if such documents are not
in strict compliance with the terms of such Letter of Credit.

27

          (g)          Disbursement
Procedures. The relevant Issuing Bank shall, promptly following its receipt
thereof, examine all documents purporting to represent a demand for payment
under a Letter of Credit. Such Issuing Bank shall promptly notify the
Administrative Agent and the relevant Borrower by telephone (confirmed by
telecopy) of such demand for payment and whether such Issuing Bank has made or
will make an LC Disbursement thereunder; provided that any failure to
give or delay in giving such notice shall not relieve such Borrower of its
obligation to reimburse the relevant Issuing Bank and the Lenders with respect
to any such LC Disbursement.

          (h)          Interim
Interest. If any Issuing Bank shall make any LC Disbursement, then, unless
the relevant Borrower shall reimburse such LC Disbursement in full on the date
such LC Disbursement is made, the unpaid amount thereof shall bear interest, for
each day from and including the date such LC Disbursement is made to but
excluding the date that such Borrower reimburses such LC Disbursement, at the
rate per annum then applicable to ABR Loans; provided that, if such
Borrower fails to reimburse such LC Disbursement when due pursuant to paragraph
(e) of this Section, then Section 2.12(c) shall apply. Interest accrued
pursuant to this paragraph shall be for the account of the relevant Issuing
Bank, except that interest accrued on and after the date of payment by any
Lender pursuant to paragraph (e) of this Section to reimburse such Issuing Bank
shall be for the account of such Lender to the extent of such payment.

          (i)          Replacement
of any Issuing Bank. Any Issuing Bank may be replaced at any time by
written agreement among the Borrowers, the Administrative Agent (whose consent
shall not be unreasonably withheld), the replaced Issuing Bank (so long as it
is not a Defaulting Lender or a Downgraded Lender) and the successor Issuing
Bank. The Administrative Agent shall notify the Lenders of any such replacement
of any Issuing Bank. At the time any such replacement shall become effective,
the Borrowers shall pay all unpaid fees accrued for the account of the replaced
Issuing Bank in its capacity as such. From and after the effective date of any
such replacement, (i) the successor Issuing Bank shall have all the rights and
obligations of an Issuing Bank under this Agreement with respect to Letters of
Credit to be issued thereafter and (ii) references herein to the term “Issuing
Bank” shall be deemed to refer to such successor or to any previous Issuing
Bank, or to such successor and all previous Issuing Banks, as the context shall
require. After the replacement of an Issuing Bank hereunder, the replaced
Issuing Bank shall remain a party hereto and shall continue to have all the
rights and obligations of an Issuing Bank under this Agreement with respect to
Letters of Credit issued by it prior to such replacement, but shall not be
required to issue additional Letters of Credit.

28

          (j)          Cash
Collateralization. If (i) any Event of Default shall occur and be
continuing, on the Business Day that the Company receives notice from the
Administrative Agent or the Required Lenders demanding the deposit of cash
collateral pursuant to this paragraph or (ii) the Maturity Date shall have
occurred and Letters of Credit remain outstanding, each Borrower shall deposit
in an account with the Administrative Agent, in the name of the Administrative Agent
and for the benefit of the Issuing Banks and the Lenders (the “Cash Collateral
Account”), an amount in cash equal to the LC Exposure for the account of such
Borrower as of such date plus any accrued and unpaid interest thereon; provided
that the obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due and payable, without
demand presentment, protest or other notice of any kind, all of which are
expressly waived by the Borrowers, upon the occurrence of any Bankruptcy Event.
Each Borrower hereby grants to the Administrative Agent, for the benefit of the
Issuing Banks and the Lenders, a Lien upon and security interest in such Cash
Collateral Account and all amounts held therein from time to time as security
for LC Exposures for the account of such Borrower, and for application to such
Borrower’s reimbursement obligations as and when the same shall arise. The
Administrative Agent shall have exclusive dominion and control, including the
exclusive right of withdrawal, over such account. Other than any interest
earned on the investment of such deposits, which investments shall be made at
the option and sole discretion of the Administrative Agent and at the
Borrowers’ risk and expense, such deposits shall not bear interest. Interest or
profits, if any, on such investments shall accumulate in such account. Moneys
in such account shall be applied by the Administrative Agent to reimburse the
relevant Issuing Bank for LC Disbursements for which it has not been reimbursed
and, to the extent not so applied, shall be held for the satisfaction of the
reimbursement obligations of the Borrowers, as applicable, for the LC Exposure
at such time or, if the maturity of the Revolving Loans has been accelerated (but
subject to the consent of Lenders with LC Exposures representing greater than
50% of the total LC Exposure), be applied to satisfy other obligations of the
Borrowers under this Agreement. If any Borrower is required to provide an
amount of cash collateral hereunder as a result of the occurrence of an Event
of Default, such amount (to the extent not applied as aforesaid) shall be
returned to such Borrower within three Business Days after all Events of
Default have been cured or waived. Borrower agrees to take all reasonable
actions necessary on the Borrower’s part to preserve the tax-exempt status of
any tax-exempt bonds secured by any Letter of Credit, including but not limited
to making yield reduction payments on any investment earnings on amounts in the
Cash Collateral Account (but only as to such portion of the Cash Collateral
Account equal to the principal amount of any outstanding tax-exempt bonds).

          (k)          Existing
Letters of Credit. The Borrowers and the Lenders agree that, as of the Effective
Date, each Existing Letter of Credit issued for the account of any such
Borrower and set forth on Schedule 2.05 on the Effective Date will be deemed
issued for the account of such Borrower under this Agreement as a Letter of
Credit.

          SECTION
2.06.          Funding of
Borrowings.

          (a)          Each
Lender shall make each Revolving Loan to be made by it hereunder on the
proposed date thereof by wire transfer of immediately available funds by 12:00
noon, Local Time, to the account of the Administrative Agent most recently
designated by it for such purpose by notice to the Lenders. The Administrative
Agent will make such Revolving Loans available to the relevant Borrower by
promptly crediting the amounts so received, in like funds, to an account of
such Borrower maintained by the Administrative Agent, and designated by such
Borrower in the applicable Borrowing Request. 

29

          (b)          Unless
the Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing (or in the case of an ABR Loan, prior to 12:00
noon, San Francisco time, on the date of such Borrowing) that such Lender will
not make available to the Administrative Agent such Lender’s share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with paragraph (a) of this Section
and may, in reliance upon such assumption, make available to the relevant
Borrower a corresponding amount. In such event, if a Lender has not in fact
made its share of the applicable Borrowing available to the Administrative
Agent, then the applicable Lender and such Borrower severally agree to pay to
the Administrative Agent forthwith on demand such corresponding amount with
interest thereon, for each day from and including the date such amount is made
available to such Borrower to but excluding the date of payment to the
Administrative Agent, at (x) the Federal Funds Effective Rate (in the case
of a Borrowing in US Dollars), or (y) the rate reasonably determined by
the Administrative Agent to be the cost to it of funding such amount (in the
case of a Borrowing in a Designated Foreign Currency), but not in excess of the
interest rate that would have applied to that Borrowing under the terms of this
Agreement. If such Lender pays such amount to the Administrative Agent, then
such amount shall constitute such Lender’s Revolving Loan included in such
Borrowing.

          SECTION
2.07.          Interest
Elections. 

          (a)          Each
Borrowing initially shall be of the Type specified in the applicable Borrowing
Request and, in the case of a Eurocurrency Borrowing, shall have an initial
Interest Period as specified in such Borrowing Request. Thereafter, the
relevant Borrower may elect to convert any Borrowing to a Borrowing of a
different Type and, in the case of a Eurocurrency Borrowing, may elect Interest
Periods therefor, all as provided in this Section, provided that no
Eurocurrency Loan denominated in a Designated Foreign Currency may be converted
into an ABR Loan. A Borrower may elect different options with respect to
different portions of the affected Borrowing, in which case each such portion
shall be allocated ratably among the Lenders holding the Revolving Loans
comprising such Borrowing, and the Revolving Loans comprising each such portion
shall be considered a separate Borrowing. Notwithstanding the foregoing, no
Borrowing may be converted to a Borrowing denominated in a different currency. 

          (b)          To
make an election pursuant to this Section, a Borrower (or, in the case of a
Borrowing Subsidiary, the Company on its behalf) shall notify the Administrative
Agent of such election by telephone by the time that a Borrowing Request would
be required under Section 2.03 if such Borrower were requesting a
Borrowing of the Type and currency resulting from such election to be made on
the effective date of such election. Each such telephonic Interest Election
Request shall be irrevocable and shall be confirmed promptly by hand delivery
or telecopy to the Administrative Agent of a written Interest Election Request
in a form approved by the Administrative Agent and signed by the relevant
Borrower, or by the Company on its behalf.

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

	
 

	
 

	
 

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

30

	
 

	
 

	
 

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

	
 

	
 

	
 

	
              (iii)         whether
 the resulting Borrowing is to be an ABR Borrowing or an Eurocurrency
 Borrowing; and

	
 

	
 

	
 

	
              (iv)         if
 the resulting Borrowing is a Eurocurrency Borrowing, the Interest Period to
 be applicable thereto after giving effect to such election, which shall be a
 period contemplated by the definition of the term “Interest Period”.

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

          (d)          Promptly
following receipt of an Interest Election Request, the Administrative Agent
shall advise each applicable Lender of the details thereof and of such Lender’s
portion of each resulting Borrowing.

          (e)          If
the relevant Borrower fails to deliver a timely Interest Election Request with
respect to a Eurocurrency Borrowing or irrevocable notice of its intent to
prepay such Borrowing as of the end of the applicable Interest Period thereto,
prior to 11:00 a.m., Local Time, three Business Days prior to the end of the
Interest Period applicable thereto, then, unless such Borrowing is repaid as
provided herein, at the end of such Interest Period such Borrowing shall be
deemed to be and shall be continued as a Eurocurrency Borrowing, with an
Interest Period of one month’s duration (unless such Borrowing is denominated
in any Designated Foreign Currency, in which case such Borrowing shall become
due and payable on the last day of such Interest Period). Notwithstanding any
contrary provision hereof, if an Event of Default has occurred and is
continuing and the Administrative Agent, at the request of the Required
Lenders, so notifies the Company, then, so long as an Event of Default is
continuing (i) no outstanding Borrowing may be converted to or continued as a
Eurocurrency Borrowing and (ii) unless repaid, each Eurocurrency Borrowing
denominated in US Dollars shall be converted to an ABR Borrowing at the end of
the Interest Period applicable thereto.

          SECTION
2.08.          Termination
and Reduction of Revolving Commitments.

          (a)          Unless
previously terminated, the Revolving Commitments shall terminate on the
Maturity Date.

          (b)          Upon
at least three Business Days’ prior irrevocable written notice to the
Administrative Agent, the Company may at any time terminate, or from time to
time reduce, the Revolving Commitments; provided that (i) each
reduction of the Revolving Commitments shall be in an amount that is an
integral multiple of US$1,000,000 and in a minimum amount of US$5,000,000 and
(ii) the Company shall not terminate or reduce the Revolving Commitments
if, after giving effect to any concurrent prepayment of Revolving Loans in
accordance with this Agreement, the aggregate Credit Exposures would exceed the
aggregate Revolving Commitments.

31

          (c)          The
Company shall notify the Administrative Agent in writing of any election to
terminate or reduce the Revolving Commitments under paragraph (b) of this
Section at least three Business Days prior to the effective date of such
termination or reduction, specifying such election and the effective date
thereof. Promptly following receipt of any notice pursuant to this Section
2.08, the Administrative Agent shall advise the Lenders of the contents
thereof. Each notice delivered by the Company pursuant to this Section shall be
irrevocable; provided that a notice of termination of the Revolving
Commitments delivered by the Company may state that such notice is conditioned
upon the effectiveness of other credit facilities, in which case such notice
may be revoked by the Company (by notice to the Administrative Agent on or
prior to the specified effective date) if such condition is not satisfied. Any
termination or reduction of the Revolving Commitments shall be permanent. Each
reduction of the Revolving Commitments shall be made ratably among the Lenders
in accordance with their respective Revolving Commitments.

          SECTION
2.09.          Repayment of
Revolving Loans; Evidence of Debt.

          (a)          Each
Borrower hereby unconditionally promises, as to the Revolving Loans made to it,
to pay to the Administrative Agent for the account of each Lender the then
unpaid principal amount of each such Revolving Loan on the Maturity Date.

          (b)          Each
Lender shall maintain in accordance with its usual practice an account or
accounts evidencing the indebtedness of each Borrower to such Lender resulting
from each Revolving Loan made by such Lender, including the amounts of
principal and interest payable and paid to such Lender from time to time
hereunder.

          (c)          The
Administrative Agent shall maintain accounts in which it shall record
(i) the amount of each Revolving Loan made hereunder, the Type thereof and
the Interest Period applicable thereto, (ii) the amount of any principal
or interest due and payable or to become due and payable from each Borrower to
each Lender hereunder and (iii) the amount of any sum received by the
Administrative Agent hereunder for the account of the Lenders and each Lender’s
share thereof.

          (d)          The
entries made in the accounts maintained pursuant to paragraph (b)
or (c) of this Section shall be prima facie evidence of the
existence and amounts of the obligations recorded therein; provided that
the failure of any Lender or the Administrative Agent to maintain such accounts
or any error therein shall not in any manner affect the obligation of any
Borrower to repay the Revolving Loans in accordance with the terms of this
Agreement.

          (e)          Any
Lender may request that Revolving Loans made by it be evidenced by a promissory
note. In such event, each Borrower shall prepare, execute and deliver to such
Lender a promissory note payable to the order of such Lender (or, if requested
by such Lender, to such Lender and its registered assigns) and in a form
approved by the Administrative Agent. Thereafter, the Revolving Loans evidenced
by such promissory note and interest thereon shall at all times (including
after assignment pursuant to Section 9.04) be represented by one or more
promissory notes in such form payable to the order of the payee named therein
(or, if such promissory note is a registered note, to such payee and its
registered assigns).

32

          SECTION
2.10.          Prepayment
of Revolving Loans.

          (a)          Any
Borrower shall have the right at any time and from time to time to prepay any
Borrowing of such Borrower in whole or in part, subject to (i) prior notice in
accordance with paragraph (c) of this Section and (ii) in the case of a
Eurocurrency Loan, reimbursement of any breakage costs if prepayment occurs
other than at the end of an Interest Period.

          (b)          In
the event and on each occasion that the aggregate Credit Exposures exceed the
aggregate Revolving Commitments, the Borrowers shall promptly prepay Borrowings
in an aggregate amount sufficient to eliminate such excess, provided
that, to the extent such excess amount is greater than the aggregate principal
amount of Revolving Loans outstanding immediately prior to the application of
such prepayment, the amount so prepaid shall be retained by the Administrative
Agent and held in the Cash Collateral Account as cover for the LC Exposures, as
more particularly described in Section 2.05(j), and thereupon such cash shall
be deemed to reduce the LC Exposures by an equivalent amount. 

          (c)          The
Company shall notify the Administrative Agent by telephone (confirmed by
telecopy) of any prepayment hereunder not later than 11:00 a.m., Local Time,
(i) in the case of the prepayment of any Borrowing denominated in US Dollars,
one Business Day, or (ii) in the case of the prepayment of any Borrowing
denominated in any Designated Foreign Currency, three Business Days before the
date of prepayment. Each such notice shall be irrevocable and shall specify the
prepayment date and the principal amount of each Borrowing or portion thereof
to be prepaid; provided that, if a notice of prepayment is given in
connection with a conditional notice of termination of the Revolving
Commitments as contemplated by Section 2.08, then such notice of
prepayment may be revoked if such notice of termination is revoked in
accordance with Section 2.08. Promptly following receipt of any such
notice, the Administrative Agent shall advise the applicable Lenders of the
contents thereof. Each partial prepayment of any Borrowing shall be in an
amount that would be permitted in the case of an advance of a Borrowing of the
same Type as provided in Section 2.02. Each prepayment of a Borrowing
shall be applied ratably to the Revolving Loans included in the prepaid
Borrowing. Prepayments shall be accompanied by accrued interest to the extent
required by Section 2.12.

          SECTION
2.11.          Fees.

          (a)          Subject
to Section 2.22, the Company agrees to pay to the Administrative Agent, in US
Dollars, for the account of the office (or Affiliate) of each Lender from which
such Lender would make Revolving Loans to the Company in US Dollars hereunder
(which office or Affiliate shall be specified by each Lender in a notice
delivered to the Administrative Agent prior to the initial payment to such
Lender under this paragraph), a facility fee, which shall accrue at the
Applicable Rate on the daily aggregate amount of the Revolving Commitments of
such Lender (whether used or unused) during the period from and including the
Effective Date to but excluding the date on which the last of such Revolving
Commitments terminates; provided that, if such Lender continues to have
any Credit Exposure after its Revolving Commitment terminate, then such
facility fee shall continue to accrue on the daily amount of such Lender’s
Credit Exposures from and including the date on which the last of its Revolving
Commitment terminates to but excluding the date on which such Lender ceases to
have any Credit Exposure. Accrued facility fees shall be payable in arrears on
the last day of March, June, September and December of each year (commencing on
the first such date to occur after the date hereof), on the date on which the
Revolving Commitments terminate and on the Maturity Date; provided that
any facility fees accruing after the Maturity Date shall be payable on demand.
All facility fees shall be computed on the basis of a year of 360 days and
shall be payable for the actual number of days elapsed (including the first day
but excluding the last day).

33

          (b)          Subject
to Section 2.22, the Company agrees to pay (i) to the Administrative Agent (or
the Issuing Bank with respect to the Existing Letters of Credit) for the
account of each Lender a participation fee with respect to its participations
in Letters of Credit, which shall accrue at the same Applicable Rate used from
time to time to determine the interest rate applicable to Eurocurrency Loans on
the average daily amount of such Lender’s LC Exposure (excluding any portion
thereof attributable to unreimbursed LC Disbursements) during the period from
and including the date hereof to but excluding the later of the date on which
such Lender’s Revolving Commitment terminates and the date on which such Lender
ceases to have any LC Exposure, and (ii) to each Issuing Bank a fronting fee,
which shall accrue at the rate or rates per annum separately agreed upon
between the Company and such Issuing Bank on the average daily amount of the LC
Exposure attributable to Letters of Credit issued by such Issuing Bank
(excluding any portion thereof attributable to unreimbursed LC Disbursements)
during the period from and including the Effective Date to but excluding the
later of the date of termination of the Revolving Commitments and the date on
which there ceases to be any LC Exposure attributable to Letters of Credit
issued by such Issuing Bank, as well as each Issuing Bank’s standard fees with
respect to the issuance, amendment, renewal or extension of any Letter of
Credit or processing of drawings thereunder. Accrued participation fees and fronting
fees shall be payable on the last day of March, June, September and December of
each year, commencing on the first such date to occur after the date hereof; provided
that all such fees shall be computed on the basis of a year of 360 days and
shall be payable for the actual number of days elapsed (including the first day
but excluding the last day); and provided further that,
notwithstanding the foregoing, with respect to the Existing Letters of Credit,
participation fees and fronting fees shall payable in advance on the first day
of January, April, July, and October of each year.

          (c)          The
Company agrees to pay to the Administrative Agent and the Arrangers the fees
described in the Fee Letter, on the terms, in the amount and at the times set
forth therein.

          (d)          All
fees payable hereunder shall be paid on the dates due, in immediately available
funds, to the Administrative Agent (or to the relevant Issuing Bank, in the
case of fees payable to it) for distribution, in the case of facility fees,
utilization fees, and participation fees, to the Lenders. Fees paid shall not
be refundable under any circumstances.

          SECTION
2.12.          Interest.

          (a)          The
Revolving Loans comprising each ABR Borrowing shall bear interest at the
Alternate Base Rate plus the
Applicable Rate.

34

          (b)          The
Revolving Loans comprising each Eurocurrency Borrowing shall bear interest at
the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing
plus the Applicable Rate. 

          (c)          Notwithstanding
the foregoing, if any principal of or interest on any Revolving Loan or any fee
or other amount payable by any Borrower hereunder is not paid when due, whether
at stated maturity, upon acceleration or otherwise, such overdue amount shall
bear interest, after as well as before judgment, at a rate per annum equal to
(i) in the case of overdue principal of any Revolving Loan, 2% per annum plus
the rate otherwise applicable to such Revolving Loan as provided in the
preceding paragraphs of this Section or (ii) in the case of any other amount,
2% plus the rate applicable to ABR Loans as provided in paragraph (a) of this
Section.

          (d)          Accrued
interest on each Revolving Loan shall be payable in arrears on each Interest
Payment Date for such Revolving Loan and, in the case of Revolving Loans, upon
termination of the Revolving Commitments; provided that (i) interest
accrued pursuant to paragraph (c) of this Section shall be payable on demand,
(ii) in the event of any repayment or prepayment of any Revolving Loan (other
than a prepayment of an ABR Loan prior to the end of the Availability Period),
accrued interest on the principal amount repaid or prepaid shall be payable on
the date of such repayment or prepayment and (iii) in the event of any
conversion of any Eurocurrency Loan prior to the end of the current Interest
Period therefor, accrued interest on such Revolving Loan shall be payable on
the effective date of such conversion.

          (e)          All
interest hereunder shall be computed on the basis of a year of 360 days,
except that (i) interest on Borrowings denominated in Sterling and
(ii) interest computed by reference to the Alternate Base Rate at times
when the Alternate Base Rate is based on the Prime Rate shall be computed on
the basis of a year of 365 days (or 366 days in a leap year), and in each case
shall be payable for the actual number of days elapsed (including the first day
but excluding the last day). The applicable Alternate Base Rate or Adjusted
LIBO Rate shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.

          SECTION
2.13.          Alternate
Rate of Interest; Illegality. 

          (a)          If
prior to the commencement of any Interest Period for a Eurocurrency Borrowing
denominated in any currency:

	
 

	
 

	
 

	
              (i)          the
 Administrative Agent determines (which determination shall be conclusive
 absent manifest error) that adequate and reasonable means do not exist for
 ascertaining the Adjusted LIBO Rate for such Interest Period; or

	
 

	
 

	
 

	
              (ii)         the
 Administrative Agent is advised by the Required Lenders that the Adjusted
 LIBO Rate for such Interest Period will not adequately and fairly reflect the
 cost to such Lenders (or Lender) of making or maintaining their Revolving
 Loans (or its Revolving Loan) included in such Borrowing for such Interest
 Period;

then the Administrative Agent shall give notice
thereof to the Company and the Lenders by telephone or telecopy as promptly as
practicable thereafter and, until the Administrative Agent notifies the Company
and the Lenders that the circumstances giving rise to such notice no longer
exist, (i) any Interest Election Request that requests the conversion of any
Borrowing denominated in such currency to, or continuation of any Borrowing
denominated in such currency as, a Eurocurrency Borrowing shall be ineffective
and any Eurocurrency Borrowing denominated in such currency that is requested
to be continued (A) if such currency is the US Dollar, shall be converted to an
ABR Borrowing on the last day of the Interest Period applicable thereto and (B)
if such currency is a Designated Foreign Currency, shall be repaid on the last
day of the Interest Period applicable thereto and (ii) any Borrowing Request
for a Eurocurrency Borrowing denominated in such currency (A) if such currency
is the US Dollar, shall be deemed a request for an ABR Borrowing and (B) if
such currency is a Designated Foreign Currency, shall be ineffective.

35

          (b)          Notwithstanding
any other provision in this Agreement, if, at any time and from time to time,
any Lender shall have determined in good faith that any applicable law, rule or
regulation or any interpretation or administration thereof by any Governmental
Authority charged with the interpretation or administration thereof, or
compliance with any guideline or request from any such Governmental Authority
(whether or not having the force of law), shall make it unlawful for such
Lender (or any of its lending offices) to honor it obligations hereunder to
make or maintain Revolving Loans in any jurisdiction (such jurisdiction, an
“Affected Jurisdiction”), such Lender will forthwith so notify the
Administrative Agent and the Company. Upon such notice, (i) each of such
Lender’s then outstanding Revolving Loans to any Borrower in such Affected
Jurisdiction shall automatically, on the expiration date of the respective
Interest Period applicable thereto (or, to the extent any such Revolving Loan
may not lawfully be maintained until such expiration date, upon such notice) be
repaid and (ii) the obligations of the affected Lender or Lenders to make or
maintain Revolving Loans into the Affected Jurisdiction and the rights of any
Borrower to request or continue any Revolving Loans of the affected Lender or
Lenders in such Affected Jurisdiction shall be suspended, until such Lender
shall have determined that the circumstances giving rise to such suspension no
longer exist and shall have so notified the Administrative Agent, and the
Administrative Agent shall have so notified the Company.

          SECTION
2.14.          Increased
Costs.

          (a)          If
any Change in Law shall:

	
 

	
 

	
 

	
              (i)          impose,
 modify or deem applicable any reserve, special deposit or similar requirement
 against assets of, deposits with or for the account of, or credit extended
 by, any Lender (except any such reserve requirement reflected in the Adjusted
 LIBO Rate) or any Issuing Bank; or

	
 

	
 

	
 

	
              (ii)          impose
 on any Lender or any Issuing Bank or the London interbank markets any other
 condition affecting this Agreement or Eurocurrency Loans made by such Lender
 or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to
increase the cost to such Lender of making or maintaining any Eurocurrency Loan
(or of maintaining its obligation to make any such Eurocurrency Loan) or to
increase the cost to such Lender or such Issuing Bank of participating in,
issuing or maintaining any Letter of Credit or to reduce the amount of any sum
received or receivable by such Lender or such Issuing Bank hereunder (whether
of principal, interest or otherwise), then the Company will pay to such Lender
or such Issuing Bank, as the case may be, such additional amount or amounts as
will compensate such Lender or such Issuing Bank, as the case may be, for such
additional costs incurred or reduction suffered.

36

          (b)          If
any Lender or any Issuing Bank determines that any Change in Law regarding
capital requirements has or would have the effect of reducing the rate of
return on such Lender’s or such Issuing Bank’s capital or on the capital of
such Lender’s or such Issuing Bank’s holding company, if any, as a consequence
of this Agreement or the Revolving Loans made by, or participations in Letters
of Credit held by, such Lender, or the Letters of Credit issued by such Issuing
Bank, to a level below that which such Lender or such Issuing Bank or such
Lender’s or such Issuing Bank’s holding company could have achieved but for
such Change in Law (taking into consideration such Lender’s or such Issuing
Bank’s policies and the policies of such Lender’s or such Issuing Bank’s holding
company with respect to capital adequacy), then from time to time the Company
will pay to such Lender or such Issuing Bank, as the case may be, such
additional amount or amounts as will compensate such Lender or such Issuing
Bank or such Lender’s or such Issuing Bank’s holding company for any such
reduction suffered.

          (c)          A
certificate of a Lender or an Issuing Bank setting forth the amount or amounts
necessary to compensate such Lender or such Issuing Bank or its holding
company, as the case may be, as specified in paragraph (a) or (b) of this
Section shall be delivered to the Company and shall be conclusive absent
manifest error. The Company shall pay such Lender or such Issuing Bank, as the
case may be, the amount shown as due on any such certificate within
10 days after receipt thereof.

          (d)          Failure
or delay on the part of any Lender or any Issuing Bank to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender’s or such
Issuing Bank’s right to demand such compensation; provided that the
Company shall not be required to compensate any Lender or any Issuing Bank
pursuant to this Section for any increased costs or reductions incurred more
than 270 days prior to the date that such Lender or such Issuing Bank, as the
case may be, notifies the Company of the Change in Law giving rise to such
increased costs or reductions and of such Lender’s or such Issuing Bank’s
intention to claim compensation therefor; provided further that,
if the Change in Law giving rise to such increased costs or reductions is
retroactive, then the 270-day period referred to above shall be extended to
include the period of retroactive effect thereof.

          SECTION
2.15.          Break
Funding Payments. In the event of (a) the payment of any principal of any
Eurocurrency Loan other than on the last day of an Interest Period applicable
thereto (including as a result of an Event of Default), (b) the conversion of
any Eurocurrency Loan other than on the last day of the Interest Period
applicable thereto, (c) the failure to borrow, convert, continue or prepay any
Revolving Loan on the date specified in any notice delivered pursuant hereto
(regardless of whether such notice may be revoked under Section 2.08(c) and is
revoked in accordance therewith), or (d) the assignment of any
Eurocurrency Loan other than on the last day of the Interest Period applicable
thereto as a result of a request by the Company pursuant to Section 2.18,
then, in any such event, each Borrower, as to any of the foregoing events
pertaining to such Borrower, shall compensate each Lender including, in each of
the foregoing cases, any loss of anticipated profits and any loss or expense
arising from the liquidation or reemployment of funds obtained by it to
maintain such loans or from fees payable to terminate the deposits from which
such funds were obtained. Such Borrower shall also pay any customary
administrative fees charged by such Lender in connection with the foregoing.
For purposes of calculating amounts payable by any Borrower to Lenders under
this Section 2.15, each Lender shall be deemed to have funded each Eurocurrency
Loan made by it at the LIBO Rate used in determining the Adjusted LIBO Rate for
such loan by a matching deposit or other borrowing in the London interbank
offered market for a comparable amount and for a comparable period, whether or
not such Eurocurrency Loan was in fact so funded.

37

          SECTION
2.16.          Taxes.

          (a)          Any
and all payments by or on account of any obligation of any Borrower hereunder
or under any other Loan Document shall be made free and clear of and without
deduction for any Indemnified Taxes or Other Taxes; provided that if any
Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from
such payments, then (i) the sum payable shall be increased as necessary so
that after making all required deductions (including deductions applicable to
additional sums payable under this Section) the Administrative Agent, the applicable
Issuing Bank or the applicable Lender (as the case may be) receives an amount
equal to the sum it would have received had no such deductions been made,
(ii) such Borrower shall make such deductions and (iii) such Borrower
shall pay the full amount deducted to the relevant Governmental Authority in
accordance with applicable law.

          (b)          In
addition, the Borrowers shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

          (c)          Each
Borrower shall indemnify the Administrative Agent, each Lender and each Issuing
Bank, within 10 days after written demand therefor, for the full amount of any
Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender
or such Issuing Bank, as the case may be, on or with respect to any payment by
or on account of any obligation of such Borrower hereunder or under any other
Loan Document (including Indemnified Taxes or Other Taxes imposed or asserted
on or attributable to amounts payable under this Section) and any penalties,
interest and expenses arising therefrom or with respect thereto, whether or not
such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority. A certificate as to the amount
of such payment or liability delivered to the Company by a Lender or by an
Issuing Bank, or by the Administrative Agent on its own behalf or on behalf of
a Lender or an Issuing Bank, shall be conclusive absent manifest error.

          (d)          As
soon as practicable after any payment of Indemnified Taxes or Other Taxes by
any Borrower to a Governmental Authority, such Borrower shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by
such Governmental Authority evidencing such payment, a copy of the return
reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

          (e)          Any
Foreign Lender that is entitled to an exemption from or reduction of
withholding tax under the law of the jurisdiction in which a Borrower is
located, or any treaty to which such jurisdiction is a party, with respect to
payments under this Agreement shall deliver to the Company (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law, such
properly completed and executed documentation prescribed by applicable law or
reasonably requested by the Company as will permit such payments to be made
without withholding or at a reduced rate; provided, that no Lender shall
be required to deliver any such documentation with respect to an exemption from
or reduction of withholding taxes imposed under the law of a jurisdiction other
than the United States of America unless the Company shall notify it of the
availability of such exemption or reduction and shall request the delivery of
such documentation.

38

          SECTION
2.17.          Payments
Generally; Pro Rata Treatment; Sharing of Set-offs; Recovery of Payments;
Apportionment of Payments.

          (a)          Each
Borrower shall make each payment required to be made by it hereunder or under
any other Loan Document (whether of principal, interest, fees or reimbursement
of LC Disbursements, or of amounts payable under Section 2.14, 2.15, 2.16,
2.20 or 2.21 or otherwise) prior to 2:00 p.m., Local Time, on the date when
due, in immediately available funds, without set-off or counterclaim. Any
amounts received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon. All such payments
shall be made to the Administrative Agent to such account as it shall from time
to time specify at its offices specified in Section 9.01, or, in any such case,
at such other address as the Administrative Agent shall from time to time
specify in a notice delivered to the Company; provided that payments to
be made directly to any Issuing Bank, the Administrative Agent, the Arrangers
or any Lender as expressly provided herein and payments pursuant to
Section 2.14, Section 2.15, Section 2.16 and Section 9.03
shall be made directly to the Persons entitled thereto. The Administrative
Agent shall distribute any such payments received by it for the account of any
other Person to the appropriate recipient promptly following receipt thereof.
Except as set forth in the definition of “Interest Period”, if any payment
hereunder shall be due on a day that is not a Business Day, the date for
payment shall be extended to the next succeeding Business Day, and, in the case
of any payment accruing interest, interest thereon shall be payable for the
period of such extension. All payments hereunder of principal or interest in
respect of any Revolving Loan (or of any breakage indemnity in respect of any
Revolving Loan) shall be made in the currency of such Revolving Loan; all other
payments hereunder and under each other Loan Document shall be made in US
Dollars. Any payment required to be made by the Administrative Agent hereunder
shall be deemed to have been made by the time required if the Administrative
Agent shall, at or before such time, have taken the necessary steps to make
such payment in accordance with the regulations or operating procedures of the
clearing or settlement system used by the Administrative Agent to make such
payment. Any amount payable by the Administrative Agent to one or more Lenders
in the national currency of a member state of the European Union that has
adopted the Euro as its lawful currency shall be paid in Euro.

          (b)          If
at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, unreimbursed LC
Disbursements, interest and fees then due hereunder, such funds shall be
applied (i) first, towards payment of interest and fees then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
interest and fees then due to such parties, and (ii) second, towards payment of
principal of the Revolving Loans and unreimbursed LC Disbursements then due
hereunder, ratably among the parties entitled thereto in accordance with the
amounts of principal and unreimbursed LC Disbursements then due to such
parties.

39

          (c)          If
any Lender shall, by exercising any right of set-off or counterclaim or
otherwise, obtain payment in respect of any principal of or interest on any of
its Revolving Loans or participations in LC Disbursements resulting in such
Lender receiving payment of a greater proportion of the aggregate amount of its
Revolving Loans and participations in LC Disbursements and accrued interest
thereon than the proportion received by any other Lender, then the Lender
receiving such greater proportion shall purchase (for cash at face value)
participations in the Revolving Loans and participations in LC Disbursements,
as applicable, of other Lenders to the extent necessary so that the benefit of
all such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective
Revolving Loans and participations in LC Disbursements; provided that
(i) if any such participations are purchased and all or any portion of the
payment giving rise thereto is recovered, such participations shall be
rescinded and the purchase price restored to the extent of such recovery,
without interest, and (ii) the provisions of this paragraph shall not be
construed to apply to any payment made by any Borrower pursuant to and in
accordance with the express terms of this Agreement or any payment obtained by
a Lender as consideration for the assignment of or sale of a participation in
any of its Revolving Loans or participations in LC Disbursements to any assignee
or participant, other than to the Company or any Subsidiary or Affiliate
thereof (as to which the provisions of this paragraph shall apply). Each
Borrower consents to the foregoing and agrees, to the extent it may effectively
do so under applicable law, that any Lender acquiring a participation pursuant
to the foregoing arrangements may exercise against such Borrower rights of
set-off and counterclaim with respect to such participation as fully as if such
Lender were a direct creditor of the Borrower in the amount of such
participation.

          (d)          Unless
the Administrative Agent shall have received notice from the Company prior to
the date on which any payment is due to the Administrative Agent for the
account of the Lenders or any Issuing Bank hereunder that the relevant Borrower
will not make such payment, the Administrative Agent may assume that such
Borrower has made such payment on such date in accordance herewith and may, in
reliance upon such assumption, distribute to the Lenders or the relevant
Issuing Bank, as the case may be, the amount due. In such event, if such
Borrower has not in fact made such payment, then each of the Lenders or such
Issuing Bank, as the case may be, severally agrees to repay to the
Administrative Agent forthwith on demand the amount so distributed to such
Lender or such Issuing Bank with interest thereon, for each day from and
including the date such amount is distributed to it to but excluding the date
of payment to the Administrative Agent, at (i) the greater of the Federal
Funds Effective Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation (in the case
of a Borrowing in US Dollars) and (ii) the rate reasonably determined by
the Administrative Agent to be the cost to it of funding such amount (in the
case of a Borrowing in a Designated Foreign Currency).

          (e)          If
any Lender shall fail to make any payment required to be made by it pursuant to
Section 2.06(b) or 2.17(d), then the Administrative Agent may, in its
discretion (notwithstanding any contrary provision hereof), apply any amounts
thereafter received by the Administrative Agent for the account of such Lender
to satisfy such Lender’s obligations under such Sections until all such
unsatisfied obligations are fully paid. 

40

          (f)          Each
Borrower agrees that to the extent such Borrower makes a payment or payments to
or for the account of the Administrative Agent, any Lender or any Issuing Bank,
which payment or payments or any part thereof are subsequently invalidated,
declared to be fraudulent or preferential, set aside or required to be repaid
to a trustee, receiver or any other party under any bankruptcy, insolvency or
similar state or federal law, common law or equitable cause (whether as a
result of any demand, settlement, litigation or otherwise), then, to the extent
of such payment or repayment, the Obligation intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been
received.

          (g)          If
any amounts distributed by the Administrative Agent to any Lender are
subsequently returned or repaid by the Administrative Agent to any Borrower,
its representative or successor in interest, or any other Person, whether by
court order, by settlement approved by the Lender in question, or pursuant to
applicable requirements of law, such Lender will, promptly upon receipt of
notice thereof from the Administrative Agent, pay the Administrative Agent such
amount. If any such amounts are recovered by the Administrative Agent from any
Borrower, its representative or successor in interest or such other Person, the
Administrative Agent will redistribute such amounts to the Lenders on the same
basis as such amounts were originally distributed.

          (h)          Notwithstanding
any other provision of this Agreement or any other Loan Document to the
contrary, all amounts collected or received by the Administrative Agent or any
Lender after acceleration of the Loans pursuant to Section 9.2 or in respect of
any sale of, collection from or other realization upon all or any part of any
collateral, pursuant to the exercise by the Administrative Agent of its
remedies shall be applied by the Administrative Agent as follows:

	
 

	
 

	
 

	
              (i)          first,
 to the payment of all reasonable out-of-pocket costs and expenses (including,
 without limitation, reasonable attorneys’ and consultants’ fees irrespective
 of whether such fees are allowed as a claim after the occurrence of a
 Bankruptcy Event) of the Administrative Agent in connection with enforcing
 the rights of the Lenders under the Loan Documents and any protective
 advances made by the Administrative Agent with respect to any collateral;

	
 

	
 

	
 

	
              (ii)         second,
 to the payment of any fees owed to the Administrative Agent hereunder or
 under any other Loan Document;

	
 

	
 

	
 

	
              (iii)        third,
 to the payment of all reasonable and documented out-of-pocket costs and
 expenses (including, without limitation, reasonable attorneys’ and
 consultants’ fees irrespective of whether such fees are allowed as a claim
 after the occurrence of a Bankruptcy Event) of each of the Lenders in
 connection with enforcing its rights under the Loan Documents or otherwise
 with respect to the Obligations owing to such Lender;

	
 

	
 

	
 

	
              (iv)        fourth,
 to the payment of all of the Obligations consisting of accrued fees and
 interest (including, without limitation, fees incurred and interest accruing
 at the then applicable rate after the occurrence of a Bankruptcy Event
 irrespective of whether a claim for such fees incurred and interest accruing
 is allowed in such proceeding), and including with respect to any Hedge
 Agreement between any Borrower and any Hedge Party (to the extent such Hedge
 Agreement is permitted hereunder), any fees, premiums and scheduled periodic
 payments due under such Hedge Agreement prior to any termination thereof and
 any interest accrued thereon;

41

	
 

	
 

	
 

	
              (v)          fifth,
 to the payment of the outstanding principal amount of the Obligations
 (including the payment of any outstanding LC Disbursements and the obligation
 to cash collateralize LC Exposure), and including with respect to any Hedge
 Agreement between any Borrower and any Hedge Party (to the extent such Hedge
 Agreement is permitted hereunder), any breakage, termination or other
 payments due under such Hedge Agreement (other than payments described in
 clause (iv) above) and any interest accrued thereon;

	
 

	
 

	
 

	
              (vi)         sixth,
 to the payment of all other Obligations and other obligations that shall have
 become due and payable under the Loan Documents or otherwise and not repaid;
 and

	
 

	
 

	
 

	
              (vii)        seventh,
 to the payment of the surplus (if any) to whomever may be lawfully entitled
 to receive such surplus.

          In
carrying out the foregoing, (x) amounts received shall be applied in the
numerical order provided until exhausted prior to application to the next
succeeding category, (y) all amounts shall be apportioned ratably among the
Lenders or Hedge Parties in proportion to the amounts of such principal,
interest, fees or other Obligations owed to them respectively pursuant to
clauses (iii) through (vii) above, and (z) to the extent that any amounts
available for distribution pursuant to clause (v) above are attributable to the
issued but undrawn amount of outstanding Letters of Credit, such amounts shall
be held by the Administrative Agent to cash collateralize Letter of Credit
Exposure pursuant to Section 2.05(j). For purposes of applying amounts in
accordance with this Section, the Administrative Agent shall be entitled to
rely upon any Hedge Party that has entered into a Hedge Agreement with any
Borrower for a determination (which such Hedge Party agrees to provide or cause
to be provided upon request of the Administrative Agent) of the outstanding
Obligations owed to such Hedge Party under any such Hedge Agreement. Unless it
has actual knowledge (including by way of written notice from any such Hedge
Party) to the contrary, the Administrative Agent, in acting hereunder, shall be
entitled to assume that no Hedge Agreements or Obligations in respect thereof
are in existence between any Hedge Party and any Borrower. 

          SECTION
2.18.          Mitigation
Obligations; Replacement of Lenders.

          (a)          If
any Lender requests compensation under Section 2.14, or if any Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.16, then
such Lender shall use reasonable efforts to designate a different lending
office for funding or booking its Revolving Loans hereunder or to assign its
rights and obligations hereunder to another of its offices, branches or
affiliates, if, in the judgment of such Lender, such designation or assignment
(i) would eliminate or reduce amounts payable pursuant to Section 2.14 or
2.16, as the case may be, in the future and (ii) would not subject such Lender
to any unreimbursed cost or expense and would not otherwise be disadvantageous
to such Lender. The Company hereby agrees to pay all reasonable costs and
expenses incurred by any Lender in connection with any such designation or
assignment.

42

          (b)          If
(i) any Lender requests compensation under Section 2.14, (ii) any Borrower
is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.16, (iii) any
Lender is a Defaulting Lender or a Downgraded Lender or (iv) any Lender has not
consented to a consent, waiver or amendment to any Loan Document requested by
the Company or the Administrative Agent and that requires the approval of the
Required Lenders under Section 9.02(b) which is otherwise approved by the
Required Lenders, then the Company may, at its sole expense and effort, upon
notice to such Lender and the Administrative Agent, require such Lender to
assign and delegate, without recourse (in accordance with and subject to the
restrictions contained in Section 9.04), all its interests, rights and
obligations under the Loan Documents to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (i) the Company shall have received the prior
written consent of the Administrative Agent, which consent shall not
unreasonably be withheld, (ii) such Lender shall have received payment of an
amount equal to the outstanding principal of its Revolving Loans and
participations in LC Disbursements, accrued interest thereon, accrued fees and
all other amounts payable to it hereunder, from the assignee (to the extent of
such outstanding principal and accrued interest and fees) or the Company (in
the case of all other amounts) and (iii) in the case of any such
assignment resulting from a claim for compensation under Section 2.14 or
payments required to be made pursuant to Section 2.16, such assignment
will result in a reduction in such compensation or payments. A Lender shall not
be required to make any such assignment and delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the
Company to require such assignment and delegation cease to apply.

          SECTION
2.19.          Borrowing
Subsidiaries. On or after the Effective Date, the Company may designate any
Subsidiary of the Company as a Borrowing Subsidiary by delivery to the
Administrative Agent and the Lenders of a Borrowing Subsidiary Agreement
executed by such Subsidiary and the Company, and upon the date five Business
Days following such delivery of the executed Borrowing Subsidiary Agreement to
the Administrative Agent and the Lenders, such Subsidiary shall for all
purposes of this Agreement be a Borrowing Subsidiary and a party to this
Agreement; provided that during such five Business Day period, such
Subsidiary may request a Borrowing pursuant to Section 2.03 if (x) the date of
the proposed Borrowing is outside of such five Business Day period and (y) in
the case of a proposed Eurocurrency Borrowing, such Subsidiary has provided the
Administrative Agent, for the benefit of the Lenders, an executed LIBO Rate
indemnity letter in form and substance reasonably acceptable to the
Administrative Agent. Upon the execution by the Company and delivery to the
Administrative Agent of a Borrowing Subsidiary Termination with respect to any
Borrowing Subsidiary, such Subsidiary shall cease to be a Borrowing Subsidiary
and a party to this Agreement; provided that no Borrowing Subsidiary
Termination will become effective as to any Borrowing Subsidiary (other than to
terminate such Borrowing Subsidiary’s right to make further Borrowings under
this Agreement) at a time when any principal of or interest on any Revolving Loan
to such Borrowing Subsidiary shall be outstanding hereunder. Promptly following
receipt of any Borrowing Subsidiary Agreement or Borrowing Subsidiary
Termination, the Administrative Agent shall send a copy thereof to each Lender.

43

          SECTION
2.20.          Additional
Reserve Costs.

          (a)          If
and so long as any Lender is required to make special deposits with the Bank of
England, to maintain reserve asset ratios or to pay fees, in each case in
respect of such Lender’s Eurocurrency Loans in any Designated Foreign Currency,
such Lender may require the relevant Borrower to pay, contemporaneously with
each payment of interest on each of such loans, additional interest on such
loan at a rate per annum equal to the Mandatory Costs Rate calculated in
accordance with the formula and in the manner set forth in Exhibit D hereto.

          (b)          If
and so long as any Lender is required to comply with reserve assets, liquidity,
cash margin or other requirements of any monetary or other authority (including
any such requirement imposed by the European Central Bank or the European
System of Central Banks, but excluding requirements reflected in the Statutory
Reserve Rate or the Mandatory Costs Rate) in respect of any of such Lender’s
Eurocurrency Loans in any Designated Foreign Currency, such Lender may require
the relevant Borrower to pay, contemporaneously with each payment of interest
on each of such Lender’s Eurocurrency Loans subject to such requirements,
additional interest on such loan at a rate per annum specified by such Lender
to be the cost to such Lender of complying with such requirements in relation
to such loan.

          (c)          Any
additional interest owed pursuant to paragraph (a) or (b) above shall be
determined by the relevant Lender, which determination shall be conclusive
absent manifest error, and notified to the relevant Borrower (with a copy to
the Administrative Agent) at least five Business Days before each date on which
interest is payable for the relevant Revolving Loan, and such additional
interest so notified to the relevant Borrower by such Lender shall be payable
to the Administrative Agent for the account of such Lender on each date on
which interest is payable for such Revolving Loan.

          SECTION
2.21.          Foreign
Subsidiary Costs.

          (a)          If
the cost to any Lender of making or maintaining any Revolving Loan to any
Borrowing Subsidiary that is not named on the signature pages to this Agreement
is increased (or the amount of any sum received or receivable by any Lender (or
its applicable lending office) is reduced) by an amount deemed in good faith by
such Lender to be material, by reason of the fact that such Borrowing
Subsidiary is incorporated in, or conducts business in, a jurisdiction outside
the United States of America, such Borrowing Subsidiary shall indemnify such
Lender for such increased cost or reduction within 15 days after demand by such
Lender (with a copy to the Administrative Agent). A certificate of such Lender
claiming compensation under this paragraph and setting forth the additional
amount or amounts to be paid to it hereunder (and the basis for the calculation
of such amount or amounts) shall be conclusive in the absence of manifest
error.

          (b)          Each
Lender will promptly notify the Company and the Administrative Agent of any
event of which it has knowledge that will entitle such Lender to additional
interest or payments pursuant to paragraph (a) above, but in any event within
45 days after such Lender obtains actual knowledge thereof; provided
that (i) if any Lender fails to give such notice within 45 days after it
obtains actual knowledge of such an event, such Lender shall, with respect to
compensation payable pursuant to this Section 2.21 in respect of any costs
resulting from such event, only be entitled to payment under this
Section 2.21 for costs incurred from and after the date 45 days prior to
the date that such Lender does give such notice and (ii) each Lender will
designate a different applicable lending office, if, in the judgment of such
Lender, such designation will avoid the need for, or reduce the amount of, such
compensation and will not be otherwise disadvantageous to such Lender.

44

          SECTION
2.22.          Defaulting
Lenders, Downgraded Lenders. Notwithstanding any provision of this
Agreement to the contrary, if any Lender becomes a Defaulting Lender or a
Downgraded Lender, then the following provisions shall apply for so long as
such Lender is a Defaulting Lender or a Downgraded Lender:

          (a)          facility
fees shall cease to accrue on the unused portion of the Revolving Commitment of
any Defaulting Lender pursuant to Section 2.11(a);

          (b)          the
Revolving Commitment and the Credit Exposure of any Defaulting Lender shall not
be included in determining whether all Lenders or the Required Lenders have
taken or may take any action hereunder (including any consent to any amendment
or waiver pursuant to Section 9.02), provided that any waiver, amendment or
modification requiring the consent of all Lenders or each affected Lender which
affects such Defaulting Lender differently than other affected Lenders shall
require the consent of such Defaulting Lender;

          (c)          so
long as any Lender is a Defaulting Lender or a Downgraded Lender, no Issuing
Bank shall be required to issue, extend, create, incur, amend or increase any
Letter of Credit unless such Issuing Bank has entered into satisfactory
arrangements with the Company or such Lender to eliminate such Issuing Bank’s
risk with respect to such Lender; and

          (d)          any
amount payable to any Defaulting Lender hereunder (whether on account of
principal, interest, fees or otherwise and including any amount that would
otherwise be payable to such Defaulting Lender pursuant to Section 2.18(d) but
excluding Section 2.19(b)) shall, in lieu of being distributed to such
Defaulting Lender, be retained by the Administrative Agent in a segregated
account and, subject to any applicable requirements of law, be applied at such
time or times as may be determined by the Administrative Agent (i) first, to
the payment of any amounts owing by such Defaulting Lender to the
Administrative Agent hereunder, (ii) second, to the payment of any amounts owing
by such Defaulting Lender to any Issuing Bank hereunder, (iii) third, if so
determined by the Administrative Agent or requested by any Issuing Bank, to be
held in such account as cash collateral for future funding obligations of the
Defaulting Lender of any participating interest in any Letter of Credit, (iv)
fourth, to the funding of any Revolving Loan in respect of which such
Defaulting Lender has failed to fund its portion thereof as required by this
Agreement, as determined by the Administrative Agent, (v) fifth, if so
determined by the Administrative Agent and the Company, held in such account as
cash collateral for future funding obligations of the Defaulting Lender of any
Revolving Loans under this Agreement, (vi) sixth, to the payment of any amounts
owing to the Lenders or any Issuing Bank as a result of any judgment of a court
of competent jurisdiction obtained by any Lender or any Issuing Bank against
such Defaulting Lender as a result of such Defaulting Lender’s breach of its
obligations under this Agreement, (vii) seventh, to the payment of any amounts
owing to the Borrowers as a result of any judgment of a court of competent
jurisdiction obtained by the Borrowers against such Defaulting Lender as a
result of such Defaulting Lender’s breach of its obligations under this
Agreement, and (viii) eighth, to such Defaulting Lender or as otherwise
directed by a court of competent jurisdiction.

45

          SECTION
2.23.          Increase in
Revolving Commitments. 

          (a)          From
time to time on and after the Effective Date and prior to the date of
termination of the Revolving Commitments, the Company may, upon at least 30
days notice to the Administrative Agent (which shall promptly provide a copy of
such notice to the Lenders), propose to increase the aggregate amount of the
Revolving Commitments by an amount which (i) is not less than $15,000,000 or,
if greater, an integral multiple of $1,000,000 in excess thereof, with respect
to any such request and (ii) when aggregated with all prior and concurrent
increases in the Revolving Commitments pursuant to this Section 2.23, is not in
excess of $185,000,000, provided that at no time shall the aggregate Revolving
Commitments exceed $650,000,000. The Company may increase the aggregate amount
of the Revolving Commitments by (x) having another lender or lenders (each, an
“Additional Lender”) become party to this Agreement, (y) agreeing with any
Lender (with the consent of such Lender in its sole discretion) to increase its
Revolving Commitment hereunder (each, an “Increasing Lender”) or (z) a
combination of the procedures described in clauses (x) and (y) of this
sentence; provided that no Lender shall be obligated to increase its Revolving
Commitment without its consent. 

          (b)          Any
increase in the Revolving Commitments pursuant to this Section 2.23 shall be
subject to satisfaction of the following conditions:

	
 

	
 

	
 

	
              (i)          Each
 of the representations and warranties contained in Article III and in the
 other Loan Documents shall be true and correct in all material respects, in
 each case on and as of such date of increase with the same effect as if made
 on and as of such date, both immediately before and after giving effect to
 such increase (except to the extent any such representation or warranty is
 expressly stated to have been made as of a specific date, in which case such
 representation or warranty shall be true and correct as of such date); and

	
 

	
 

	
 

	
              (ii)         At
 the time of such increase, no Default shall have occurred and be continuing
 or would result from such increase.

          (c)          Upon
the effective date of any increase in the amount of the Revolving Commitments
pursuant to this Section 2.23 (each, an “Additional Commitment”):

	
 

	
 

	
 

	
              (i)          Each
 Additional Lender or Increasing Lender shall enter into a joinder agreement
 in form and substance reasonably satisfactory to the Administrative Agent
 pursuant to which such Additional Lender and/or Increasing Lender shall, as
 of the effective date, undertake an Additional Commitment (or, in the case of
 an Increasing Lender, pursuant to which such Increasing Lender’s Revolving
 Commitment shall be increased in the agreed amount on such date) and such
 Additional Lender shall thereupon become (or, if an Increasing Lender,
 continue to be) a “Lender” for all purposes hereof; and

46

	
 

	
 

	
 

	
              (ii)          Each
 of the existing Lenders shall assign to each Person providing an Additional
 Commitment, and each such Person shall purchase from each of the existing
 Lenders, Revolving Loans (together with accrued but unpaid interest thereon),
 in an amount as shall be necessary in order that, after giving effect to all
 such assignments and purchases, such Revolving Loans will be held by existing
 Lenders and the Person making the Additional Commitments ratably in
 accordance with their Applicable Percentage after giving effect to such
 Additional Commitments.

          (d)          If
any such Additional Lender is a Foreign Lender, such Additional Lender shall
deliver the forms required by Section 2.16(e).

          (e)          This
Section 2.23 shall supersede any provisions in Section 9.02 to the contrary.
Notwithstanding any other provision of any Loan Document, the Loan Documents
may be amended by Administrative Agent and the Borrowers, if necessary, to
provide for terms applicable to each Additional Commitment.

ARTICLE III

Representations
and Warranties

          The
Company represents and warrants to the Lenders that:

          SECTION
3.01.          Corporate
Existence and Power. The Company, the Borrowing Subsidiaries and the
Subsidiary Guarantors are each corporations duly organized, validly existing
and in good standing under the laws of the jurisdiction of their incorporation,
are duly qualified to transact business in every jurisdiction where, by the
nature of its business, the failure to be so qualified could have or cause a
Material Adverse Effect, and have all corporate powers and all governmental
licenses, authorizations, consents and approvals required to carry on their
business as now conducted.

          SECTION
3.02.          Corporate
and Governmental Authorization; No Contravention. The execution, delivery
and performance by the Borrowers of this Agreement and the other Loan Documents,
and the execution by the Subsidiary Guarantors of the Guarantee Agreement and
the Indemnity, Subrogation and Contribution Agreement (i) are within the
Borrowers’ and the Subsidiary Guarantors’ respective corporate powers, (ii)
have been duly authorized by all necessary corporate action, (iii) require no
action by or in respect of or filing with any governmental body, agency or
official, (iv) do not contravene, or constitute a default under, any provision
of applicable law or regulation or of the certificate of incorporation or
by-laws of the Company or any Subsidiary or of any agreement, judgment,
injunction, order, decree or other instrument binding upon the Company or any
of its Subsidiaries, and (v) do not result in the creation or imposition of any
Lien on any asset of the Company or any of its Subsidiaries.

          SECTION
3.03.          Binding
Effect. This Agreement has been duly executed and delivered and constitutes
a valid and binding agreement of the Borrowers enforceable in accordance with
its terms, and the other Loan Documents, when executed and delivered in
accordance with this Agreement, will constitute valid and binding obligations
of the Borrowers and the Subsidiary Guarantors party thereto, enforceable in
accordance with their respective terms, provided that the enforceability hereof
and thereof is subject in each case to general principles of equity and to
bankruptcy, insolvency and similar laws affecting the enforcement of creditors’
rights generally.

47

          SECTION
3.04.          Financial
Information. 

          (a)          The
audited balance sheet of the Company and the Consolidated Subsidiaries as of
October 31, 2008, and the related statements of income, shareholders’ equity
and cash flows for the Fiscal Year then ended, reported on by Ernst & Young
LLP, and the unaudited balance sheets of the Company and the Consolidated
Subsidiaries as of January 30, 2009 and May 1, 2009 and the related statements
of income, shareholders’ equity and cash flows for the Fiscal Quarters and
portions of the Fiscal Year then ended, copies of all of which have been
delivered to each of the Lenders, fairly present, in conformity with GAAP, the
consolidated financial position of the Company and the Consolidated
Subsidiaries as of such dates and their results of operations and cash flows
for such periods.

          (b)          Since
October 31, 2008, there has been no Material Adverse Effect.

          (c)          Neither
(i) the board of directors of the Company or a committee thereof has concluded
that any financial statement previously furnished to the Administrative Agent
should no longer be relied upon because of an error, nor (ii) has the
Company been advised by its auditors that a previously issued audit report or
interim review cannot be relied on.

          SECTION
3.05.          No
Litigation. There is no action, suit or proceeding pending, or to the
knowledge of the Company threatened, against or affecting the Company or any of
its Subsidiaries before any court or arbitrator or any governmental body,
agency or official which could have a Material Adverse Effect or which in any
manner draws into question the validity of or could impair the ability of any
Borrower or Subsidiary Guarantor to perform its obligations under this Agreement
or any of the other Loan Documents.

          SECTION
3.06.          Compliance
with ERISA. 

          (a)          The
Company and each member of the Controlled Group have fulfilled their
obligations under the minimum funding standards of ERISA and the Code with
respect to each Plan and are in compliance in all material respects with the
presently applicable provisions of ERISA and the Code, and have not incurred
any liability to the PBGC or a Plan under Title IV of ERISA.

          (b)          Neither
the Company nor any member of the Controlled Group has incurred any Withdrawal
Liability with respect to any Multiemployer Plan under Title IV of ERISA, and
no such liability is expected to be incurred.

          SECTION
3.07.          Compliance
with Laws; Payment of Taxes. The Company and the Subsidiaries are in
compliance in all material respects with all applicable laws, regulations and
similar requirements of Governmental Authorities, except for the matters
disclosed in Schedule 3.14, except where the failure to comply would not have
or cause a Material Adverse Effect. There have been filed on behalf of the
Company and its Subsidiaries all Federal, state and local income, excise,
property and other tax returns which are required to be filed by them and all
taxes due pursuant to such returns or pursuant to any assessment received by or
on behalf of the Company or any Subsidiary have been paid or are being
contested in good faith by appropriate proceedings. The charges, accruals and
reserves on the books of the Company and the Subsidiaries in respect of taxes
or other governmental charges are, in the opinion of the Company, adequate.
United States income tax returns of the Company and the Subsidiaries have been
examined and closed through the Fiscal Year ended October 28, 2005.

48

          SECTION
3.08.          Subsidiaries.
Each of the Subsidiaries is a corporation duly organized, validly existing and
in good standing under the laws of its jurisdiction of incorporation, is duly
qualified to transact business in every jurisdiction where, by the nature of
its business, such qualification is necessary, and has all corporate powers and
all governmental licenses, authorizations, consents and approvals required to
carry on its business as now conducted, except where the failure to qualify or
have any such license, authorization, consent or approval would not have or
cause a Material Adverse Effect. The Company has no Subsidiaries except for
those Subsidiaries listed on Schedule 3.08, or as described in a Compliance
Certificate furnished pursuant to Section 5.01(c), in each case which
accurately sets forth each such Subsidiary’s complete name and jurisdiction of
incorporation. Each Domestic Material Subsidiary on the date hereof is
separately identified as such in Schedule 3.08 hereto.

          SECTION
3.09.          Investment
Company Act. Neither the Company nor any of its Subsidiaries is an
“investment company” within the meaning of the Investment Company Act of 1940,
as amended.

          SECTION
3.10.          [Reserved].

          SECTION
3.11.          Ownership
of Property; Liens. Each of the Company and its Consolidated Subsidiaries
has title to its properties sufficient for the conduct of its business, and
none of such property is subject to any Lien except as permitted in Section
5.08.

          SECTION
3.12.          No Default.
Neither the Company nor any of the Consolidated Subsidiaries is in default
under or with respect to any agreement, instrument or undertaking to which it
is a party or by which it or any of its property is bound which could have or
cause a Material Adverse Effect. No Default or Event of Default has occurred
and is continuing.

          SECTION
3.13.          Full
Disclosure. All information heretofore furnished by the Company or any
Subsidiary to the Administrative Agent or any Lender for purposes of or in
connection with this Agreement or any transaction contemplated hereby
(including without limitation the information set forth in the Information
Memorandum) is, and all such information hereafter furnished by the Company or
any Subsidiary to the Administrative Agent or any Lender will be, true,
accurate and complete in every material respect or based on reasonable
estimates on the date as of which such information is stated or certified.

          SECTION
3.14.          Environmental
Matters.

          (a)          Except
for the matters disclosed in Schedule 3.14, neither the Company nor any
Subsidiary is subject to, or knows any basis for, any Environmental Liability
which could have or cause a Material Adverse Effect and neither the Company nor
any Subsidiary has been designated as a potentially responsible party under
CERCLA or under any state statute similar to CERCLA. To the best knowledge of
the Company, except for the matters disclosed in Schedule 3.14, none of the
Properties has been identified on any current or proposed (i) National
Priorities List under 40 C.F.R. § 300, (ii) CERCLIS list or (iii) any list
arising from a state statute similar to CERCLA.

49

          (b)          Except
for the matters disclosed in Schedule 3.14, no Hazardous Materials have been or
are being used, produced, manufactured, processed, treated, recycled,
generated, stored, disposed of, managed or otherwise handled at, or shipped or
transported to or from the Properties or are otherwise present at, on, in or
under the Properties, or, to the best of the knowledge of the Company, at or
from any adjacent site or facility, except for Hazardous Materials used or
otherwise handled, to the best knowledge of the Company, in the ordinary course
of business in compliance with all applicable Environmental Requirements,
except where the failure to comply would not have or cause a Material Adverse
Effect.

          (c)          Except
for the matters disclosed in Schedule 3.14, the Company, and each of its
Affiliates, has procured all Environmental Authorizations necessary for the
conduct of its business, and, to the best knowledge of the Company, is in
compliance with all Environmental Requirements, Environmental Authorizations
and Environmental Judgments and Orders in connection with the operation of the
Properties and the Company’s, and its Affiliate’s, businesses, except where the
failure to comply could not have or cause a Material Adverse Effect.

          SECTION
3.15.          Equity
Interests. All Equity Interests, debentures, bonds, notes and all other
securities of the Company and its Subsidiaries presently issued and outstanding
are validly and properly issued. All outstanding securities (whether debt or
equity) of the Company and its Subsidiaries were registered under the federal
and any applicable state securities laws or were issued in transactions which
were exempt from registration under such laws; provided, that as to any
Subsidiary acquired but not created by the Company, the foregoing
representation is made to the best of the Company’s knowledge. The issued
Equity Interests of the Company’s Wholly Owned Subsidiaries are owned by the
Company free and clear of any Lien or adverse claim. At least a majority of the
issued Equity Interests of each of the other Subsidiaries (other than Wholly
Owned Subsidiaries) is owned by the Company, and all such Equity Interests
owned by the Company are free and clear of any Lien or adverse claim. 

          SECTION
3.16.          Margin
Stock. Neither the Company 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, and no part of the proceeds of any
Revolving Loan will be used to purchase or carry any Margin Stock or to extend
credit to others for the purpose of purchasing or carrying any Margin Stock, or
be used for any purpose which violates, or which is inconsistent with, the
provisions of Regulations T, U or X.

          SECTION
3.17.          Insolvency.
After giving effect to the execution and delivery of the Loan Documents and the
making of the Revolving Loans under this Agreement, no Borrower or Subsidiary
Guarantor will be “insolvent,” within the meaning of such term as defined in
Section 101 of Title 11 of the United States Code or Section 2 of the Uniform
Fraudulent Transfer Act, or any other applicable state law pertaining to
fraudulent transfers, as each may be amended from time to time, or be unable to
pay its debts generally as such debts become due, or have an unreasonably small
capital to engage in any business or transaction, whether current or
contemplated. 

50

ARTICLE
IV

Conditions

          SECTION
4.01.          Effective
Date. The obligations of the Lenders to make Revolving Loans and of the
Issuing Banks to issue Letters of Credit hereunder shall not become effective
until the date on which each of the following conditions is satisfied (or
waived in accordance with Section 9.02):

          (a)          The
Administrative Agent (or its counsel) shall have received from each party
hereto either (i) a counterpart of this Agreement signed on behalf of such
party or (ii) written evidence satisfactory to the Administrative Agent (which
may include facsimile or other electronic image scan transmission of a signed
signature page of this Agreement) that such party has signed a counterpart of
this Agreement.

          (b)          The
Administrative Agent shall have received the favorable written opinion (addressed
to the Administrative Agent and the Lenders and dated the Effective Date) of
Lindquist & Vennum, PLLP, special counsel for the Borrowers and the
Subsidiary Guarantors, substantially in the form of Exhibit C and covering such
other matters relating to the Borrowers, the Subsidiary Guarantors, this
Agreement, the other Loan Documents or the Transactions as the Administrative
Agent or the Required Lenders shall reasonably request. The Borrowers hereby
request such counsel to deliver such opinion.

          (c)          The
Administrative Agent shall have received such documents and certificates as the
Administrative Agent or its counsel may reasonably request relating to the
organization, existence and good standing of each of the Borrowers and the
Subsidiary Guarantors, the authorization of the Transactions and any other
legal matters relating to the Borrowers, the Subsidiary Guarantors, this
Agreement, the other Loan Documents or the Transactions, all in form and
substance satisfactory to the Administrative Agent and its counsel.

          (d)          The
Administrative Agent shall have received a certificate dated as of the
Effective Date and signed by a principal financial officer of the Company, as
to the satisfaction on the Effective Date of the conditions set forth in
clauses (a) and (b) of Section 4.02, provided that for purposes of this
Section 4.01(d) and the certificate to be delivered hereunder the exclusion of
the representations and warranties set forth in Sections 3.04(b), 3.05 and 3.14
contained in Section 4.02(a) shall not apply.

          (e)          The
Guarantee Agreement shall have been duly executed by the parties thereto, shall
have been delivered to the Administrative Agent and shall be in full force and
effect.

          (f)          The
Indemnity, Subrogation and Contribution Agreement shall have been duly executed
by the parties thereto, shall have been delivered to the Administrative Agent
and shall be in full force and effect.

51

          (g)          All
loans outstanding under the Existing Credit Agreements shall have been repaid,
together with all interest, fees and other amounts accrued thereunder, and the
commitments under the Existing Credit Agreements shall have been terminated.

          (h)          The
Administrative Agent shall have received all fees and other amounts due and
payable on or prior to the Effective Date, including, to the extent invoiced,
reimbursement or payment of all out-of-pocket expenses (including fees, charges
and disbursements of counsel) required to be reimbursed or paid by the Company
or any Subsidiary hereunder or under any other Loan Document.

          (i)          The
Lenders shall have received the balance of all upfront fees agreed to by the
Company and the Administrative Agent and required to be paid by the Company.

          (j)          After
giving effect to the Effective Date and the initial extensions of credit made
thereon, the aggregate unutilized Revolving Commitments shall not be less than
$100,000,000.

          (k)          The
Administrative Agent shall have received such documentation and information as
is reasonably requested about the Borrowers and the Subsidiary Guarantors in
respect of applicable “know your customer” and anti-money laundering rules and
regulations, including without limitation the USA PATRIOT Act.

The Administrative Agent
shall notify the Company and the Lenders of the Effective Date, and such notice
shall be conclusive and binding. Notwithstanding the foregoing, the obligations
of the Lenders to make Revolving Loans and of the Issuing Banks to issue
Letters of Credit hereunder shall not become effective unless each of the
foregoing conditions is satisfied (or waived pursuant to Section 9.02) on
or prior to July 30, 2009 (and, in the event such conditions are not so
satisfied or waived, the Revolving Commitments shall terminate at such time).

          SECTION
4.02.          Each Credit
Event. The obligation of each Lender to make a Revolving Loan on the
occasion of any Borrowing, and of the Issuing Banks to issue, amend, renew or
extend any Letter of Credit, is subject to the satisfaction of the following
conditions:

          (a)          The
representations and warranties of the Borrowers set forth in this Agreement
(other than those set forth in Sections 3.04(b), 3.04(c), 3.05 and 3.14) shall
be true and correct on and as of the date of such Borrowing or the date of such
issuance, amendment, renewal or extension of a Letter of Credit, as applicable.

          (b)          At
the time of and immediately after giving effect to such Borrowing or such
issuance, amendment, renewal or extension of a Letter of Credit, no Default
shall have occurred and be continuing.

          (c)          With
respect to each requesting Borrower that is a Foreign Subsidiary, each Lender
shall have submitted the completed and executed documentation and had accepted
by the relevant Governmental Authority such documentation necessary for it be
exempt from, or eligible for a reduction in, withholding tax under the laws of
the jurisdiction in which such Borrower is located.

52

Each Borrowing and each
issuance, amendment, renewal or extension of a Letter of Credit shall be deemed
to constitute a representation and warranty by the Borrowers on the date
thereof as to the matters specified in paragraphs (a) and (b) of this
Section. Each Lender agrees, at the request of any Borrower, to promptly
complete and execute all documentation specified in paragraph (c) of this
Section.

          SECTION
4.03.          Initial
Borrowing by each Borrowing Subsidiary. The obligation of each Lender to
make Revolving Loans and of the Issuing Banks to issue Letters of Credit to any
Borrowing Subsidiary (other than the Borrowing Subsidiaries party hereto on the
date hereof) is subject to the satisfaction of the following conditions:

          (a)          The
Administrative Agent (or its counsel) shall have received such Borrowing
Subsidiary’s Borrowing Subsidiary Agreement, duly executed by all parties
thereto.

          (b)          The
Administrative Agent shall have received such documents and certificates as the
Administrative Agent or its counsel may reasonably request relating to the
organization, existence and good standing of such Borrowing Subsidiary, the
authorization of the Transactions insofar as they relate to such Borrowing
Subsidiary and any other legal matters relating to such Borrowing Subsidiary,
its Borrowing Subsidiary Agreement or such Transactions, all in form and
substance satisfactory to the Administrative Agent and its counsel.

ARTICLE
V

Covenants

          Until
the Revolving Commitments have expired or been terminated and the principal of
and interest on each Revolving Loan and all fees and other amounts payable
hereunder shall have been paid in full and all Letters of Credit shall have
expired or terminated and all LC Disbursements shall have been reimbursed,
the Company covenants and agrees with the Lenders that:

          SECTION
5.01.          Information.
The Company will deliver to each of the Lenders:

          (a)          as
soon as available and in any event within 90 days after the end of each Fiscal
Year, a consolidated balance sheet of the Company and its Consolidated
Subsidiaries as of the end of such Fiscal Year and the related consolidated
statements of income, shareholders’ equity and cash flows for such Fiscal Year,
setting forth in each case in comparative form the figures for the previous
fiscal year, all certified by Ernst & Young LLP or other independent public
accountants of nationally recognized standing, with such certification to be
free of exceptions and qualifications not acceptable to the Required Lenders; 

          (b)          as
soon as available and in any event within 45 days after the end of each of the
first three Fiscal Quarters of each Fiscal Year, a consolidated balance sheet
of the Company and its Consolidated Subsidiaries as of the end of such Fiscal
Quarter and the related statements of income and cash flows for such Fiscal
Quarter and for the portion of the Fiscal Year ended at the end of such Fiscal
Quarter, setting forth in each case in comparative form the figures for the
corresponding Fiscal Quarter and the corresponding portion of the previous
Fiscal Year, all certified (subject to normal year-end adjustments) as to
fairness of presentation, GAAP and consistency by the chief financial officer,
the treasurer or the chief accounting officer of the Company; 

53

          (c)          simultaneously
with the delivery of each set of financial statements referred to in clauses
(a) and (b) above, a certificate of the chief financial officer, the treasurer
or the chief accounting officer of the Company substantially in the form of
Exhibit E (a “Compliance Certificate”) (i) setting forth in reasonable
detail the calculations required to establish whether the Company was in
compliance with the requirements of Sections 5.03, 5.04, 5.06, 5.08, 5.11(d)
and 5.21 on the date of such financial statements, (ii) stating whether any
Default exists on the date of such certificate and, if any Default then exists,
setting forth the details thereof and the action which the Company is taking or
proposes to take with respect thereto, (iii) containing the certification
required by Section 5.01(b), and (iv) listing any new Subsidiaries not listed
on Schedule 3.08 or in any prior Compliance Certificate;

          (d)          simultaneously
with the delivery of each set of annual financial statements referred to in
clause (a) above, a statement of the firm of independent public accountants
which reported on such statements to the effect that nothing has come to their
attention to cause them to believe that any Default under any of Sections 5.03,
5.04 and 5.11(d) existed on the date of such financial statements;

          (e)          within
five Domestic Business Days after the chief executive officer, chief operating
officer, chief financial officer, chief accounting officer or treasurer of the
Company becomes aware of the occurrence of any Default, a certificate of the
chief financial officer, treasurer or the chief accounting officer of the
Company setting forth the details thereof and the action which the Company is
taking or proposes to take with respect thereto;

          (f)          promptly
upon the mailing thereof to the shareholders of the Company generally, copies of
all financial statements, reports and proxy statements so mailed;

          (g)          promptly
upon the filing thereof, copies of all registration statements (other than the
exhibits thereto and any registration statements on Form S-8 or its equivalent)
and annual, quarterly or monthly reports which the Company shall have filed
with the Securities and Exchange Commission;

          (h)          if
and when the Company or any member of the Controlled Group (i) gives or is
required to give notice to the PBGC of any “reportable event” (as defined in
Section 4043 of ERISA) with respect to any Plan which might constitute grounds
for a termination of such Plan under Title IV of ERISA, or knows that the plan
administrator of any Plan has given or is required to give notice of any such
reportable event, a copy of the notice of such reportable event given or
required to be given to the PBGC; (ii) receives notice of complete or partial
withdrawal liability under Title IV of ERISA, a copy of such notice; or (iii) receives
notice from the PBGC under Title IV of ERISA of an intent to terminate or
appoint a trustee to administer any Plan, a copy of such notice;

54

          (i)          promptly
after the Company knows of the commencement thereof, notice of any litigation
or other legal proceeding involving a claim against the Company and/or any
Subsidiary for US$10,000,000 or more in excess of amounts covered in full by
applicable insurance; 

          (j)          promptly
upon receipt thereof, copies of any “management letter” submitted to the
Company by its certified public accountants in connection with each annual,
interim or special audit, and promptly upon completion thereof, any response
reports from the Company in respect thereof; and

          (k)          from
time to time such additional information regarding the financial position or
business of the Company and its Subsidiaries as the Administrative Agent, at
the request of any Lender, may reasonably request.

          Documents
required to be delivered pursuant to this Sections 5.01(a), (b) and (c) may be
delivered electronically and, if so delivered, shall be deemed to have been
delivered on the date on which such documents are posted on the Company’s
behalf on IntraLinks, SyndTrak or another similar website, if any, to which
each of the Administrative Agent and each Lender has access. The Administrative
Agent shall have no obligation to request the delivery of, or to maintain
copies of, the documents referred to in the immediately preceding sentence or to
monitor compliance by the Company with any such request for delivery, and each
Lender shall be solely responsible for requesting delivery to it or maintaining
its copies of such documents.

          SECTION
5.02.          Inspection
of Property, Books and Records. The Company will (i) keep, and will
cause each Subsidiary to keep, proper books of record and account in which
full, true and correct entries in conformity with GAAP shall be made of all
dealings and transactions in relation to its business and activities; and
(ii) permit, and will cause each Subsidiary to permit, representatives of
any Lender at such Lender’s expense prior to the occurrence of an Event of
Default and at the Company’s expense after the occurrence of an Event of
Default to visit and inspect any of their respective properties, to examine and
make abstracts from any of their respective books and records and to discuss
their respective affairs, finances and accounts with their respective officers,
employees and independent public accountants. The Company agrees to cooperate
and assist in such visits and inspections, in each case at such reasonable
times and as often as may reasonably be desired.

          SECTION
5.03.          Ratio of
Consolidated Debt to Consolidated EBITDA. The ratio of Consolidated Debt at
any date to Consolidated EBITDA for the period of four consecutive Fiscal
Quarters ended on or most recently prior to such date will not exceed the ratio
of 3.50 to 1.00.

          SECTION
5.04.          Interest
Coverage Ratio. The ratio of Consolidated EBITDA for the period of four
consecutive Fiscal Quarters ended on or most recently prior to any date of
determination to Consolidated Interest Expense at such date will not be less
than the ratio of 4.00 to 1.00.

          SECTION
5.05.          Restricted
Payments. The Company will not declare or make any Restricted Payment
during any Fiscal Year, except for stock repurchases and dividends approved by
the Board of Directors of the Company.

55 

          SECTION
5.06.          Loans or
Advances. Neither the Company nor any of its Subsidiaries shall make loans
or advances to any Person except: (i) loans or advances to employees not
exceeding US$10,000,000 in the aggregate at any time outstanding made in the
ordinary course of business; (ii) deposits required by government agencies
or public utilities; (iii) loans or advances to any Borrower or Subsidiary
Guarantor; (iv) Prepaid Rebates; and (v) loans, advances or deposits
other than those permitted by clauses (i) through (iv) of this Section not
exceeding 10% of Consolidated Total Assets in the aggregate at any time
outstanding, provided that after giving effect to the making of any
loans, advances or deposits permitted by clause (i), (ii), (iii), (iv) or (v)
of this Section, no Default shall have occurred and be continuing.

          SECTION
5.07.          Acquisitions.
Neither the Company nor any of its Subsidiaries shall make any Acquisitions, provided,
that Permitted Acquisitions may be made if, after giving effect thereto, no Default
or Event of Default would be caused thereby (giving effect to such Permitted
Acquisitions on a pro forma basis as to financial covenants as if they had
occurred on each relevant date or at the beginning of each relevant period).

          SECTION
5.08.          Negative
Pledge. Neither the Company nor any Consolidated Subsidiary will create,
assume or suffer to exist any Lien on any asset now owned or hereafter acquired
by it, except:

          (a)          Liens
existing on the date of this Agreement securing Debt outstanding on the date of
this Agreement in an aggregate principal amount not exceeding US$10,000,000;

          (b)          any
Lien existing on any asset of any Person at the time such Person becomes a
Consolidated Subsidiary and not created in contemplation of such event;

          (c)          any
Lien on any asset (other than Equity Interests or inventory) securing Debt
incurred or assumed for the purpose of financing all or any part of the cost of
acquiring or constructing such asset, provided that such Lien attaches
to such asset concurrently with or within 18 months after the acquisition or
completion of construction thereof;

          (d)          any
Lien on any asset of any Person existing at the time such Person is merged or
consolidated with or into the Company or a Consolidated Subsidiary and not
created in contemplation of such event;

          (e)          any
Lien existing on any asset prior to the acquisition thereof by the Company or a
Consolidated Subsidiary and not created in contemplation of such acquisition;

          (f)          Liens
securing Debt owing by any Subsidiary to any Borrower or Subsidiary Guarantor;

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

56

          (h)          Liens
incidental to the conduct of its business or the ownership of its assets which
(i) do not secure Debt and (ii) do not in the aggregate materially
detract from the value of its assets or materially impair the use thereof in
the operation of its business;

          (i)          any
Lien on Excess Margin Stock; 

          (j)          any
Lien incurred with respect to Securitization Debt permitted under Section 5.21;
and

          (k)          Liens
not otherwise permitted by the foregoing clauses of this Section securing Debt
(other than Revolving Loans) in an aggregate principal amount at any time
outstanding which, together with the amount of Debt secured by Liens permitted
by the foregoing paragraphs (a) through (i), does not exceed 10% of
Consolidated Total Assets.

          SECTION
5.09.          Maintenance
of Existence. The Company shall, and shall cause each Subsidiary Guarantor
and each other Borrower to, maintain its corporate existence and carry on its
business in substantially the same manner and in substantially the same fields
in which such business is now carried on, except as permitted by
Section 5.11.

          SECTION
5.10.          Dissolution.
None of the Company, any Subsidiary Guarantor or any other Borrower shall
suffer or permit dissolution or liquidation either in whole or in part or
redeem or retire any of its Equity Interests or that of any Subsidiary that is
a Borrower or Subsidiary Guarantor, except (i) through a corporate
reorganization permitted by Section 5.11 or (ii) Restricted Payments permitted
by Section 5.05.

          SECTION
5.11.          Consolidations,
Mergers and Sales of Assets. The Company will not, nor will it permit any
Material Subsidiary to, consolidate or merge with or into, or sell, lease or
otherwise transfer all or any substantial part of its assets (other than Excess
Margin Stock) to, any other Person, or discontinue or eliminate any business
line or segment, provided that (a) the Company may merge with
another Person if (i) such Person was organized under the laws of the
United States of America or one of its states, (ii) the Company is the
corporation surviving such merger and (iii) immediately after giving
effect to such merger, no Default shall have occurred and be continuing,
(b) Material Subsidiaries may merge with one another, or with and into the
Company where the Company is the Person surviving such merger,
(c) Borrowers which are both Domestic Subsidiaries and Subsidiary
Guarantors may transfer assets among themselves, (d) the foregoing limitation
on the sale, lease or other transfer of assets and on the discontinuation or
elimination of a business line or segment shall not apply to loans or advances
permitted by Section 5.06 or prohibit, during any Fiscal Quarter, transfers of
assets or the discontinuance or elimination of a business line or segment (in a
single transaction or in a series of related transactions) unless the aggregate
assets to be so transferred or utilized in a business line or segment to be so
discontinued, when combined with all other assets transferred (other than
inventory and obsolete or surplus property sold in the ordinary course of
business), and all other assets utilized in all other business lines or
segments discontinued, during such Fiscal Quarter and the immediately preceding
three Fiscal Quarters contributed more than 20% of Consolidated Operating
Profits during the four consecutive Fiscal Quarters immediately preceding such
Fiscal Quarter and (e) the Company and any Subsidiary Guarantor may sell
inventory and obsolete or surplus property in the ordinary course of business.

57 

          SECTION
5.12.          Use of
Proceeds. The proceeds of the Revolving Loans will be used only for the
purposes referred to in the preamble to this Agreement. No portion of the
proceeds of the Revolving Loans will be used by the Company or any Subsidiary
(i) directly or indirectly, for the purpose, whether immediate, incidental
or ultimate, of purchasing or carrying any Margin Stock in a violation of
Regulation U, or (ii) for any purpose in violation of any other applicable
law or regulation.

          SECTION
5.13.          Compliance
with Laws; Payment of Taxes.

          (a)          The
Company will, and will cause each of its Subsidiaries and each member of the
Controlled Group to, comply with applicable laws (including but not limited to
ERISA and Environmental Requirements), regulations and similar requirements of
Governmental Authorities (including but not limited to PBGC), except where the
necessity of such compliance is being contested in good faith through
appropriate proceedings diligently pursued. The Company will, and will cause
each of its Subsidiaries to, pay promptly when due all taxes, assessments,
governmental charges, claims for labor, supplies, rent and other obligations
which, if unpaid, might become a Lien against the property of the Company or
any Subsidiary, except liabilities being contested in good faith by appropriate
proceedings diligently pursued and against which the Company shall have set up
reserves in accordance with GAAP.

          (b)          The
Company shall not permit the aggregate complete or partial withdrawal liability
under Title IV of ERISA with respect to Multiemployer Plans incurred by the
Company and members of the Controlled Group to exceed US$10,000,000 at any
time. For purposes of this Section 5.13(b), the amount of withdrawal liability
of the Company and members of the Controlled Group at any date shall be the
aggregate present value of the amount claimed to have been incurred less any
portion thereof which the Company and members of the Controlled Group have paid
or as to which the Company reasonably believes, after appropriate consideration
of possible adjustments arising under Sections 4219 and 4221 of ERISA, it and
members of the Controlled Group will have no liability.

          SECTION
5.14.          Insurance.
The Company will maintain, and will cause each of its Subsidiaries to maintain
(either in the name of the Company or in such Subsidiary’s own name), with
financially sound and reputable insurance companies, insurance on all its
Property in at least such amounts and against at least such risks as are
usually insured against in the same general area by companies of established
repute engaged in the same or similar business.

          SECTION
5.15.          Change in
Fiscal Year. The Company will not change its Fiscal Year without the
consent of the Required Lenders.

          SECTION
5.16.          Maintenance
of Property. The Company shall, and shall cause each Subsidiary to,
maintain all of its material properties and assets in good condition, repair
and working order, ordinary wear and tear excepted.

          SECTION
5.17.          Environmental
Notices. The Company shall furnish to the Lenders and the Administrative
Agent prompt written notice of any Environmental Liabilities, Environmental
Notices and Environmental Judgments and Orders, and of any pending, threatened
or anticipated Environmental Proceedings, that relate to the Company, any of
its Subsidiaries or the Properties and that could reasonably be expected to
have or cause a Material Adverse Effect.

58

          SECTION
5.18.          Environmental
Matters. The Company shall conduct, and cause each of its Subsidiaries to
conduct, its operations and keep and maintain its Properties in compliance with
all Environmental Requirements, except where the failure to so comply could
not, individually or in the aggregate, reasonably be expected to have or cause
a Material Adverse Effect.

          SECTION
5.19.           [Reserved].

          SECTION
5.20.          Transactions
with Affiliates. Neither the Company nor any of its Subsidiaries shall
enter into, or be a party to, any material transaction with any Affiliate of
the Company or such Subsidiary (which Affiliate is not a Borrower or a
Subsidiary Guarantor), except as permitted by law and in the ordinary course of
business and pursuant to reasonable terms no less favorable to the Company or
such Subsidiary than would be obtained in a comparable arm’s length transaction
with a Person which is not an Affiliate.

          SECTION
5.21.          Limitation
on Subsidiary Debt. The Company shall not permit the outstanding principal
amount of Debt of the Subsidiaries (other than (i) Debt owed to any Borrower or
Subsidiary Guarantor, (ii) $250,000,000 in Securitization Debt and (ii) Debt
owed under this Agreement or any other Loan Document) at any time to exceed, in
the aggregate, 10% of Consolidated Total Assets. 

          SECTION
5.22.          Subsidiary
Guarantors.

          (a)          The
Company shall cause each Domestic Material Subsidiary that is not already a
Subsidiary Guarantor to become a party to, and agree to be bound by the terms
of, the Guarantee Agreement and the Indemnity, Subrogation and Contribution
Agreement pursuant to an instrument in form and substance satisfactory to the
Administrative Agent executed and delivered to the Administrative Agent by such
Domestic Material Subsidiary as promptly as practicable and in any event within
20 Domestic Business Days after the day on which it becomes a Domestic Material
Subsidiary or such later date reasonably acceptable to the Administrative
Agent. The Company shall also cause the items specified in Sections 4.01(b) and
(c) to be delivered to the Administrative Agent concurrently with the
instrument referred to above, modified appropriately to refer to such
instrument and such Domestic Material Subsidiary.

          (b)          Once
any Subsidiary becomes a Domestic Material Subsidiary and a party to the
Guarantee Agreement and the Indemnity, Subrogation and Contribution Agreement,
such Subsidiary thereafter shall remain a party to and a guarantor under the
Guarantee Agreement and the Indemnity, Subrogation and Contribution Agreement
without regard to the amount of its Total Assets on any day or Operating
Profits for any period.

59

ARTICLE
VI

Events
of Default

          SECTION
6.01.          Events of
Default. If one or more of the following events (“Events of Default”)
shall have occurred and be continuing:

          (a)          any
Borrower shall fail to pay when due any principal of any Revolving Loan or any
reimbursement obligation in respect of any LC Disbursement or shall fail
to pay any interest on any Revolving Loan within five Domestic Business Days
after such interest shall become due, or shall fail to pay any fee or other
Obligation (other than any Obligation under a Hedge Agreement to which any
Borrower and any Hedge Party are parties) payable hereunder within five
Domestic Business Days after such fee or other Obligation becomes due; or

          (b)          the
Company shall fail to observe or perform any covenant contained in Section
5.01(e), 5.02(ii), 5.03, 5.04, 5.08, 5.09, 5.10 or 5.11; or 

          (c)          any
Borrower shall fail to observe or perform any covenant or agreement contained
or incorporated by reference in this Agreement (other than those covered by
clause (a) or (b) above) or any other Loan Document for thirty days after the
earlier of (i) the first day on which the Company has knowledge of such failure
or (ii) written notice thereof has been given to the Company by the
Administrative Agent at the request of any Lender; or

          (d)          any
representation, warranty, certification or statement made or deemed made by the
Company in Article III of this Agreement, or by any Subsidiary Guarantor in
Section 8 of the Guarantee Agreement, or by the Company or any other Borrower
in any certificate, financial statement or other document delivered pursuant to
this Agreement or any Loan Document shall prove to have been incorrect or
misleading in any material respect when made (or deemed made); or

          (e)          the
Company or any Subsidiary shall fail to make any payment in respect of Debt
outstanding in an aggregate principal amount in excess of US$10,000,000 (other
than the Revolving Loans) when due or within any applicable grace period; or

          (f)          any
event or condition shall occur which results in the acceleration of the
maturity of Debt of the Company or any Subsidiary in an aggregate principal
amount in excess of US$10,000,000 or the mandatory prepayment, redemption,
defeasance or purchase of such Debt by the Company (or its designee) or such
Subsidiary (or its designee) prior to the scheduled maturity thereof, or
enables (or, with the giving of notice or lapse of time or both, would enable)
the holders of such Debt or any Person acting on such holders’ behalf to
accelerate the maturity thereof or require the mandatory prepayment,
redemption, defeasance or purchase thereof prior to the scheduled maturity
thereof, without regard to whether such holders or other Person shall have
exercised or waived their right to do so; or

          (g)          the
Company or any Material Subsidiary 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

60

          (h)          an
involuntary case or other proceeding shall be commenced against the Company or
any Material Subsidiary 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 60 days; or an order for
relief shall be entered against the Company or any Material Subsidiary under
the federal bankruptcy laws as now or hereafter in effect; or

          (i)          the
Company or any member of the Controlled Group shall fail to pay when due any
material amount which it shall have become liable to pay to the PBGC or to a
Plan under Title IV of ERISA; or notice of intent to terminate a Plan or Plans
shall be filed under Title IV of ERISA by the Company, any member of the
Controlled Group, any plan administrator or any combination of the foregoing;
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 30 days thereafter; or a condition 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)          one
or more judgments or orders for the payment of money in an aggregate amount in
excess of US$10,000,000 shall be rendered against the Company or any Subsidiary
and the Company or such Subsidiary shall not discharge the same in accordance
with its terms or procure a stay of execution thereof within 30 days from the
date of entry thereof, and within such period of 30 days, or such longer period
during which execution of such judgment shall have been stayed, appeal
therefrom and cause the execution thereof to be stayed during such appeal; or

          (k)          a
federal tax lien shall be filed against the Company or any Subsidiary under
Section 6323 of the Code or a lien of the PBGC shall be filed against the
Company or any Subsidiary under Section 4068 of ERISA and in either case such
lien shall remain undischarged for a period of 25 days after the date of
filing; or

          (l)          (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) of 30% or more of the
outstanding shares of the voting stock of the Company; or (ii) as of any
date a majority of the Board of Directors of the Company shall consist of
individuals who were not either (A) directors of the Company as of the
corresponding date of the previous year, (B) selected or nominated to
become directors by the Board of Directors of the Company 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 Company of which
a majority consisted of individuals described in clause (A) or individuals
described in clause (B); or

61

          (m)          any
provision of the Guarantee Agreement shall for any reason cease to be valid and
binding on any Subsidiary Guarantor, or any Subsidiary Guarantor (or any Person
acting on behalf of any Subsidiary Guarantor) shall deny or disaffirm its
obligations under the Guarantee Agreement; or

          (n)          the
Guarantee of the Company set forth in Article VIII shall cease at any time to
be in full force and effect, or the Company shall so assert in writing, or the
Company shall disaffirm or deny any of its Obligations hereunder in writing.

then, and in every such event, the Administrative
Agent shall, if requested by the Required Lenders, by notice to the Company,
take any or all of the following actions, at the same or different times: (i)
terminate the Revolving Commitments and they shall thereupon terminate,
(ii) declare the Revolving Loans (together with accrued interest thereon)
and all other Obligations payable hereunder and under the other Loan Documents
(but excluding any amounts owing under any Hedge Agreement to which any
Borrower and any Hedge Party are parties) to be, and the Revolving Loans
(together with all accrued interest thereon) and all other amounts payable hereunder
and under the other Loan Documents shall thereupon become, immediately due and
payable without presentment, demand, protest or other notice of any kind, all
of which are hereby waived by the Borrowers, and (iii) direct the Borrowers to
deposit (and the Borrowers hereby agree, forthwith upon receipt of notice of
such direction from the Administrative Agent, to deposit) with the
Administrative Agent from time to time such additional amount of cash as is
equal to the LC Exposure then outstanding, such amount to be held by the
Administrative Agent in the Cash Collateral Account as security for the LC
Exposure as described in Section 2.05(j); provided that if any Event of
Default specified in clause (g) or (h) above occurs with respect to any
Borrower, without any notice to any Borrower or any other act by the
Administrative Agent or the Lenders, the Revolving Commitments shall thereupon
automatically terminate, the Revolving Loans (together with accrued interest
thereon) and all other amounts payable hereunder and under the other Loan
Documents shall automatically become immediately due and payable, and the
Administrative Agent shall be deemed to have made a demand for cash collateral
to the full extent permitted under Section 2.05(j) without presentment, demand,
protest or other notice of any kind, all of which are hereby waived by the
Borrowers. Notwithstanding the foregoing, the Administrative Agent shall have
available to it all other remedies at law or equity, and shall exercise any one
or all of them at the request of the Required Lenders.

          SECTION
6.02.          Notice of
Default. The Administrative Agent shall give notice to the Company of any
Default under Section 6.01(c) promptly upon being requested to do so by any
Lender and shall thereupon notify all the Lenders thereof.

ARTICLE
VII

The
Administrative Agent

          SECTION
7.01.          Appointment
and Authority. Each of the Lenders (for purposes of this Article,
references to the Lenders shall also mean the Issuing Banks) hereby irrevocably
appoints Wells Fargo to act on its behalf as the Administrative Agent hereunder
and under the other Loan Documents and authorizes the Administrative Agent to
take such actions on its behalf and to exercise such powers as are delegated to
the Administrative Agent by the terms hereof or thereof, together with such
actions and powers as are reasonably incidental thereto. Except as set forth in
Section 7.06, the provisions of this Article are solely for the benefit of
the Administrative Agent and the Lenders, and no Borrower shall have any rights as a third
party beneficiary of any of such provisions.

62

          SECTION
7.02.          Rights as a
Lender. The Person serving as the Administrative Agent hereunder shall have
the same rights and powers in its capacity as a Lender as any other Lender and
may exercise the same as though it were not the Administrative Agent and the
term “Lender” or “Lenders” shall, unless otherwise expressly indicated or
unless the context otherwise requires, include the Person serving as the
Administrative Agent hereunder in its individual capacity. Such Person and its
Affiliates may accept deposits from, lend money to, act as the financial
advisor or in any other advisory capacity for and generally engage in any kind
of business with any Borrower or any Subsidiary or other Affiliate thereof as
if such Person were not the Administrative Agent hereunder and without any duty
to account therefor to the Lenders.

          SECTION
7.03.          Exculpatory
Provisions. The Administrative Agent shall not have any duties or
obligations except those expressly set forth herein and in the other Loan
Documents. Without limiting the generality of the foregoing, the Administrative
Agent:

          (a)          shall
not be subject to any fiduciary or other implied duties, regardless of whether
a Default or Event of Default has occurred and is continuing;

          (b)          shall
not have any duty to take any discretionary action or exercise any
discretionary powers, except discretionary rights and powers expressly
contemplated hereby or by the other Loan Documents that the Administrative
Agent is required to exercise as directed in writing by the Required Lenders
(or such other number or percentage of the Lenders as shall be expressly provided
for herein or in the other Loan Documents), provided that the
Administrative Agent shall not be required to take any action that, in its
opinion or the opinion of its counsel, may expose the Administrative Agent to
liability or that is contrary to any Loan Document or applicable law; and

          (c)          shall
not, except as expressly set forth herein and in the other Loan Documents, have
any duty to disclose, and shall not be liable for the failure to disclose, any
information relating to the Borrowers or any of their respective Affiliates
that is communicated to or obtained by the Person serving as the Administrative
Agent or any of its Affiliates in any capacity.

          The
Administrative Agent shall not be liable for any action taken or not taken by
it (i) with the consent or at the request of the Required Lenders (or such
other number or percentage of the Lenders as shall be necessary, or as the
Administrative Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Sections 9.02and 6.01) or (ii) in the
absence of its own gross negligence or willful misconduct. The Administrative
Agent shall be deemed not to have knowledge of any Default or Event of Default
unless and until notice describing such Default or Event of Default is given to
the Administrative Agent by a Borrower or a Lender.

63

          The
Administrative Agent shall not be responsible for or have any duty to ascertain
or inquire into (i) any statement, warranty or representation made in or
in connection with this Agreement or any other Loan Document, (ii) the
contents of any certificate, report or other document delivered hereunder or
thereunder or in connection herewith or therewith, (iii) the performance
or observance of any of the covenants, agreements or other terms or conditions
set forth herein or therein or the occurrence of any Default or Event of
Default, (iv) the validity, enforceability, effectiveness or genuineness of
this Agreement, any other Loan Document or any other agreement, instrument or
document or (v) the satisfaction of any condition set forth in
Article IV or elsewhere herein, other than to confirm receipt of items
expressly required to be delivered to the Administrative Agent.

          SECTION
7.04.          Reliance by
Administrative Agent. The Administrative Agent shall be entitled to rely
upon, and shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing
(including any electronic message, internet or intranet website posting or
other distribution) believed by it to be genuine and to have been signed, sent
or otherwise authenticated by the proper Person. The Administrative Agent also
may rely upon any statement made to it orally or by telephone and believed by
it to have been made by the proper Person, and shall not incur any liability
for relying thereon. In determining compliance with any condition hereunder to
the making of a Revolving Loan, or the issuance of a Letter of Credit, that by
its terms must be fulfilled to the satisfaction of a Lender or the relevant
Issuing Bank, the Administrative Agent may presume that such condition is
satisfactory to such Lender or such Issuing Bank unless the Administrative
Agent shall have received notice to the contrary from such Lender or such
Issuing Bank prior to the making of such Revolving Loan or the issuance of such
Letter of Credit. The Administrative Agent may consult with legal counsel (who
may be counsel for the Borrowers), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it
in accordance with the advice of any such counsel, accountants or experts.

          SECTION
7.05.          Delegation
of Duties. The Administrative Agent may perform any and all of its duties
and exercise its rights and powers hereunder or under any other Loan Document
by or through any one or more sub-agents appointed by the Administrative Agent.
The Administrative Agent and any such sub-agent may perform any and all of its
duties and exercise its rights and powers by or through their respective
Related Parties. The exculpatory provisions of this Article shall apply to any
such sub-agent and to the Related Parties of the Administrative Agent and any
such sub-agent, and shall apply to their respective activities in connection
with the syndication of the credit facilities provided for herein as well as
activities as Administrative Agent.

64

          SECTION
7.06.          Resignation
of Administrative Agent. The Administrative Agent may at any time give
notice of its resignation to the Lenders and the Company. Upon receipt of any
such notice of resignation, the Required Lenders shall have the right, in
consultation with the Company, to appoint a successor, which shall be a bank
with an office in the United States, or an Affiliate of any such bank with an
office in the United States. If no such successor shall have been so appointed
by the Required Lenders and shall have accepted such appointment within 30 days
after the retiring Administrative Agent gives notice of its resignation, then
the retiring Administrative Agent may, on behalf of the Lenders, appoint a
successor Administrative Agent meeting the qualifications set forth above; provided
that if the Administrative Agent shall notify the Company and the Lenders that
no qualifying Person has accepted such appointment, then such resignation shall
nonetheless become effective in accordance with such notice and (1) the
retiring Administrative Agent shall be discharged from its duties and
obligations hereunder and under the other Loan Documents (except that in the
case of any collateral security held by the Administrative Agent on behalf of
the Lenders under any of the Loan Documents, the retiring Administrative Agent
shall continue to hold such collateral security until such time as a successor
Administrative Agent is appointed) and (2) all payments, communications and
determinations provided to be made by, to or through the Administrative Agent
shall instead be made by or to each Lender directly, until such time as the
Required Lenders appoint a successor Administrative Agent as provided for above
in this Section. Upon the acceptance of a successor’s appointment as
Administrative Agent hereunder, such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring
(or retired) Administrative Agent, and the retiring Administrative Agent shall
be discharged from all of its duties and obligations hereunder or under the
other Loan Documents (if not already discharged therefrom as provided above in
this Section). The fees payable by the Borrowers to a successor Administrative
Agent shall be the same as those payable to its predecessor unless otherwise
agreed between the Borrowers and such successor. After the retiring
Administrative Agent’s resignation hereunder and under the other Loan
Documents, the provisions of this Article and Section 9.03 shall continue in
effect for the benefit of such retiring Administrative Agent, its sub-agents
and their respective Related Parties in respect of any actions taken or omitted
to be taken by any of them while the retiring Administrative Agent was acting
as Administrative Agent.

          SECTION
7.07.          Non-Reliance
on Administrative Agent and Other Lenders. Each Lender acknowledges that it
has, independently and without reliance upon the Administrative Agent or any
other Lender or any of their Related Parties and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender also acknowledges that it
will, independently and without reliance upon the Administrative Agent or any
other Lender or any of their Related Parties and based on such documents and
information as it shall from time to time deem appropriate, continue to make
its own decisions in taking or not taking action under or based upon this
Agreement, any other Loan Document or any related agreement or any document
furnished hereunder or thereunder.

          SECTION
7.08.          No Other
Duties, Etc. Anything herein to the contrary notwithstanding, none of the
Arrangers, syndication agent or other agents listed on the cover page hereof
shall have any powers, duties or responsibilities under this Agreement or any
of the other Loan Documents, except in its capacity, as applicable, as the
Administrative Agent or a Lender hereunder.

          SECTION
7.09.          Guaranty
Matters.

          (a)          The
Administrative Agent is hereby authorized on behalf of the Lenders, without the
necessity of any notice to or further consent from the Lenders, from time to
time (but without any obligation) to take any action with respect to any
collateral that may be deemed by the Administrative Agent in its discretion to
be necessary or advisable to perfect and maintain perfected the Liens upon any
such collateral granted pursuant to any of the Loan Documents.

65

          (b)          The
Lenders hereby authorize the Administrative Agent, at its option and in its
discretion, (i) to release any Lien granted to or held by the Administrative
Agent upon any collateral (A) upon termination of the Revolving Commitments,
termination, expiration or cash collateralization of all outstanding Letters of
Credit and payment in full of all of the Obligations then due and payable, (B)
constituting property sold or to be sold or disposed of as part of or in
connection with any disposition expressly permitted hereunder or under any
other Loan Document or to which the Required Lenders have consented in writing
or (C) otherwise pursuant to and in accordance with the provisions of any
applicable Loan Document, and (ii) to release any Subsidiary Guarantor from its
obligations under the Guarantee Agreement if such Person ceases to be a
Subsidiary as a result of a transaction permitted hereunder. Upon request by
the Administrative Agent at any time, the Lenders will confirm in writing the
Administrative Agent’s authority to release any Guarantor from its obligations
under the Guarantee Agreement, pursuant to this Section 7.9(b).

          SECTION
7.10.          Issuing
Bank. The provisions of this Article VII (other than Section 7.02) shall
apply to the Issuing Banks mutatis mutandis to the same extent as such provisions
apply to the Administrative Agent.

ARTICLE
VIII

Guarantee

          In
order to induce the Lenders to extend credit to the Borrowing Subsidiaries
hereunder and to induce the Issuing Banks to issue Letters of Credit hereunder,
the Company hereby irrevocably and unconditionally guarantees, as a primary
obligor and not merely as a surety, the Obligations of the Borrowing
Subsidiaries. The Company further agrees that the due and punctual payment of
the Obligations of the Borrowing Subsidiaries may be extended or renewed, in
whole or in part, without notice to or further assent from it, and that it will
remain bound upon its guarantee hereunder notwithstanding any such extension or
renewal of any Obligation.

          The
Company waives presentment to, demand of payment from and protest to any
Borrowing Subsidiary of any of the Obligations, and also waives notice of
acceptance of its obligations and notice of protest for nonpayment. The
obligations of the Company hereunder shall not be affected by and the Company
hereby waives any defense that it may now or hereafter have arising out of the
following: (a) the failure of any Lender or any Issuing Bank, as the case
may be, to assert any claim or demand or to enforce any right or remedy against
any Borrowing Subsidiary under the provisions of this Agreement, any other Loan
Document or otherwise; (b) any extension or renewal of any of the
Obligations; (c) any rescission, waiver, amendment or modification of, or
release from, any of the terms or provisions of this Agreement, any Borrowing
Subsidiary Agreement or any other Loan Document or agreement; (d) the
failure or delay of any Lender or any Issuing Bank, as the case may be, to
exercise any right or remedy against any other guarantor of the Obligations; (e) the
failure of any Lender or any Issuing Bank, as the case may be, to assert any
claim or demand or to enforce any remedy under any Loan Document or any other
agreement or instrument; (f) any default, failure or delay, willful or
otherwise, in the performance of the Obligations; or (g) any other act,
omission or delay to do any other act which may or might in any manner or to
any extent vary the risk of the Company or otherwise operate as a discharge of
the Company as a matter of law or equity or which would impair or eliminate any
right of the Company to subrogation.

66

          The
Company further agrees that its guarantee hereunder constitutes a promise of
payment when due (whether or not any bankruptcy or similar proceeding shall
have stayed the accrual or collection of any of the Obligations or operated as
a discharge thereof) and not merely of collection, and waives any right to
require that any resort be had by any Lender or any Issuing Bank, as the case
may be, to any balance of any deposit account or credit on the books of any
Lender or any Issuing Bank, as the case may be, in favor of any Borrower or
Subsidiary Guarantor or any other Person.

          The
obligations of the Company hereunder shall not be subject to any reduction,
limitation, impairment or termination for any reason, and shall not be subject
to any defense or setoff, counterclaim, recoupment or termination whatsoever,
by reason of the invalidity, illegality or unenforceability of the Obligations,
any impossibility in the performance of the Obligations or otherwise.

          The
Company further agrees that its obligations hereunder shall continue to be
effective or be reinstated, as the case may be, if at any time payment, or any
part thereof, of any Obligation is rescinded or must otherwise be restored by
any Lender or any Issuing Bank, as the case may be, upon the bankruptcy or
reorganization of any Borrower or otherwise.

          In
furtherance of the foregoing and not in limitation of any other right which any
Lender or any Issuing Bank may have at law or in equity against the Company by
virtue hereof, upon the failure of any Borrowing Subsidiary to pay any
Obligation when and as the same shall become due, whether at maturity, by
acceleration, after notice of prepayment or otherwise, the Company hereby
promises to and will, upon receipt of written demand by the Administrative
Agent, forthwith pay, or cause to be paid, to the Administrative Agent for
distribution to the Lenders or the relevant Issuing Bank in cash an amount
equal the unpaid principal amount of such Obligation. The Company further
agrees that if payment in respect of any Obligation shall be due in a currency
other than US Dollars and/or at a place of payment other than San Francisco and
if, by reason of any legal prohibition, disruption of currency or foreign
exchange markets, war or civil disturbance or other event, payment of such
Obligation in such currency or at such place of payment shall be impossible or,
in the judgment of any Lender, not consistent with the protection of its rights
or interests, then, at the election of such Lender, the Company shall make
payment of such Obligation in US Dollars (based upon the applicable Exchange
Rate in effect on the date of payment) and/or in San Francisco, and shall
indemnify such Lender or such Issuing Bank against any losses or expenses
(including losses or expenses resulting from fluctuations in exchange rates)
that it shall sustain as a result of such alternative payment.

          Upon
payment in full by the Company of any Obligation of any Borrowing Subsidiary,
each Lender or each Issuing Bank shall, in a reasonable manner, assign to the
Company the amount of such Obligation owed to such Lender or such Issuing Bank
and so paid, such assignment to be pro tanto to the extent to
which the Obligation in question was discharged by the Company, or make such
disposition thereof as the Company shall direct (all without recourse to any
Lender or any Issuing Bank and without any representation or warranty by any
Lender or any Issuing Bank). Upon payment by the Company of any sums as
provided above, all rights of the Company against any Borrowing Subsidiary
arising as a result thereof by way of right of subrogation or otherwise shall
in all respects be subordinated and junior in right of payment to the prior
indefeasible payment in full of all the Obligations owed by such Borrowing
Subsidiary to the Lenders and the Issuing Banks.

67

ARTICLE
IX

Miscellaneous

          SECTION
9.01.          Notices.

          (a)          Except
in the case of notices and other communications expressly permitted to be given
by telephone, all notices and other communications provided for herein shall be
in writing and shall be delivered by hand or overnight courier service, mailed
by certified or registered mail or sent by telecopy, as follows:

	
 

	
 

	
 

	
              (i)          if
 to the Company, to it at 901 3rd Avenue South, Minneapolis, MN
 55402, Attention of Tyler Treat, Treasurer, Telecopy No. (612) 486-7981;
 

	
 

	
 

	
 

	
              (ii)         if
 to any Borrowing Subsidiary or Subsidiary Guarantor, to it in care of the
 Company as provided in paragraph (a) above;

	
 

	
 

	
 

	
              (iii)        if
 to the Administrative Agent, to it at Wells Fargo Bank, National Association,
 201 Third Street, 8th Floor, San Francisco, CA 94103, Attention: Agency
 Syndications Group, Telecopy No. (415) 512-9408;

	
 

	
 

	
 

	
              (iv)        if
 to Wells Fargo in its capacity as an Issuing Bank, to it at Wells Fargo Bank,
 National Association, 90 S. 7th Street, Minneapolis, MN 55419, MAC Address:
 N9305-077, Attention: Ethel Phillips, Telecopy No. (612) 667-0803; 

	
 

	
 

	
 

	
              (v)         if
 to Wachovia Bank, National Association in its capacity as an Issuing Bank, to
 it at: Wachovia Bank, National Association, a Wells Fargo Company, Domestic
 Trade Operations, Standby Letters of Credit Center of Excellence, 401 Linden
 Street, 1st Floor, Mail Code NC 6034, Winston-Salem, NC, 27101 Telecopy
 No. (336) 735-0950;with a copy to: Wells Fargo Bank, National Association,
 90 S. 7th Street, Minneapolis, MN 55419, MAC Address: N9305-077, Attention:
 Ethel Phillips, Telecopy No. (612) 667-0803; 

	
 

	
 

	
 

	
              (vi)        if
 to any other Lender, to it at its address (or telecopy number) set forth in
 its Administrative Questionnaire.

                        Any
party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and
other communications given to any party hereto in accordance with the
provisions of this Agreement shall be deemed to have been given on the date of
receipt.

68

          (b)          Notices
and other communications to the Lenders hereunder may be delivered or furnished
by electronic communication (including e-mail and internet or intranet
websites) pursuant to procedures approved by the Administrative Agent. The
Administrative Agent or the Borrowers may, in their discretion, agree to accept
notices and other communications to it hereunder by electronic communication
pursuant to procedures approved by them, provided that approval of such
procedures may be limited to particular notices or communications. Unless the
Administrative Agent otherwise prescribes, (i) notices and other
communications to the Lenders sent to an e-mail address shall be deemed
received upon the sender’s receipt of an acknowledgement from the intended
recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), provided that if such
notice or other communication is not sent during the normal business hours of
the recipient, such notice or communication shall be deemed to have been sent
at the opening of business on the next Business Day for the recipient, and
(ii) notices or other communications to the Lenders posted to an internet
or intranet website shall be deemed received upon the deemed receipt by the
intended recipient at its e-mail address as described in the foregoing
clause (i) of notification that such notice or communication is available
and identifying the website address therefor.

          SECTION
9.02.          Waivers;
Amendments. 

          (a)          No
failure or delay by the Administrative Agent, any Lender or any Issuing Bank in
exercising any right or power hereunder or under any other Loan Document shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce
such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and remedies of the
Administrative Agent, the Lenders and the Issuing Banks hereunder and under the
other Loan Documents are cumulative and are not exclusive of any rights or
remedies that they would otherwise have. No waiver of any provision of any Loan
Document or consent to any departure by any Borrower or Subsidiary Guarantor
therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given.
Without limiting the generality of the foregoing, the making of a Revolving
Loan or issuance of a Letter of Credit shall not be construed as a waiver of any
Default, regardless of whether the Administrative Agent, any Lender or any
Issuing Bank may have had notice or knowledge of such Default at the time.

          (b)          Subject
to Section 2.22, neither this Agreement nor any of the Loan Documents nor any
provision hereof or thereof may be waived, amended or modified except pursuant
to an agreement or agreements in writing entered into by the Company and the
Required Lenders or by the Company and the Administrative Agent with the
consent of the Required Lenders (and, in the case of a Borrowing Subsidiary
Agreement, the applicable Borrowing Subsidiary); provided that no such
agreement shall (i) increase the Revolving Commitment of any Lender
without the written consent of such Lender, (ii) reduce the principal
amount of any Revolving Loan or LC Disbursement or reduce the rate of interest
thereon, or reduce any fees payable hereunder, without the written consent of
each Lender affected thereby, (iii) postpone the scheduled date of payment
of the principal amount of any Revolving Loan or LC Disbursement, or any
interest thereon, or any fees payable hereunder, or reduce the amount of, waive
or excuse any such payment, or postpone the scheduled date of expiration of any
Revolving Commitment, without the written consent of each Lender affected
thereby, (iv) change Section 2.17(b) or (c) in a manner that
would alter the pro rata sharing of payments required thereby without the
written consent of each Lender, (v) change any of the provisions of this
Section or the definition of “Required Lenders” or any other provision of any
Loan Document specifying the number or percentage of Lenders required to waive,
amend or modify any rights hereunder or make any determination or grant any
consent hereunder, without the written consent of each Lender, or
(vi) release the Company from its obligations under Article VIII or
release any of the Subsidiary Guarantors from their obligations under the
Guarantee Agreement without the consent of each Lender except as provided in Section
9.15; provided further that no such agreement shall amend, modify or
otherwise affect the rights or duties of the Administrative Agent or any
Issuing Bank hereunder without the prior written consent of the Administrative
Agent or such Issuing Bank, as the case may be.

69

          SECTION
9.03.          Expenses;
Indemnity; Damage Waiver. 

          (a)          The
Company shall pay (i) all reasonable out-of-pocket expenses incurred by
the Administrative Agent and each of its Affiliates, including the reasonable
fees, charges and disbursements of Robinson, Bradshaw & Hinson, P.A.,
counsel for the Administrative Agent, in connection with the syndication of the
credit facilities provided for herein, the preparation and administration of
this Agreement or the other Loan Documents or any amendments, modifications or
waivers of the provisions hereof (whether or not the transactions contemplated
hereby or thereby shall be consummated), (ii) all out-of-pocket expenses
incurred by any Issuing Bank in connection with the issuance, amendment,
renewal or extension of any Letter of Credit or any demand for payment
thereunder and (iii) all out-of-pocket expenses incurred by the
Administrative Agent, any Issuing Bank or any Lender, including the reasonable
fees, charges and disbursements of any counsel for the Administrative Agent,
any Issuing Bank or any Lender, in connection with the enforcement or
protection of its rights in connection with any Loan Document, including its
rights under this Section, or in connection with the Revolving Loans made or
Letters of Credit issued hereunder, including all such out-of-pocket expenses
incurred during any workout, restructuring or negotiations in respect of such
Revolving Loans or Letters of Credit.

          (b)          The
Company agrees to indemnify the Administrative Agent, each Lender and each
Issuing Bank, and each Related Party of any of the foregoing Persons (each such
Person being called an “Indemnitee”) against, and hold each Indemnitee
harmless from, any and all losses, claims, damages, liabilities and related
expenses, including the reasonable fees, charges and disbursements of any
counsel for any Indemnitee, incurred by or asserted against any Indemnitee
arising out of, in connection with, or as a result of (i) the execution or
delivery of this Agreement or any other Loan Document, or any agreement or
instrument contemplated hereby or thereby, the performance by the parties
hereto of their respective obligations hereunder or the consummation of the
Transactions or any other transactions contemplated hereby, (ii) any
Revolving Loan or Letter of Credit or the use of the proceeds therefrom
(including any refusal by any Issuing Bank to honor a demand for payment under
a Letter of Credit if the documents presented in connection with such demand do
not strictly comply with the terms of such Letter of Credit) or any transaction
in which such proceeds are used, (iii) any actual or alleged presence or
Environmental Release of Hazardous Materials on or from any property currently or
formerly owned or operated by the Company or any of its Subsidiaries or
Affiliates, or any Environmental Liability related in any way to the Company or
any of its Subsidiaries or Affiliates or their respective predecessors,
(iv) any actual or prospective claim, litigation, investigation or
proceeding relating to any of the foregoing, whether based on contract, tort or
any other theory and regardless of whether any Indemnitee is a party thereto
and (v) any civil penalty or fine assessed by OFAC against, and all
reasonable costs and expenses (including counsel fees and disbursements)
incurred in connection with defense thereof by, the Administrative Agent or any
Lender as a result of conduct of any Borrower that violates a sanction enforced
by OFAC.; provided that such indemnity shall not, as to any Indemnitee,
be available to the extent that such losses, claims, damages, liabilities or
related expenses are finally determined by a court of competent jurisdiction to
have resulted from the gross negligence or willful misconduct of such
Indemnitee.

70

          (c)          To
the extent that the Company fails to pay any amount required to be paid by it
to the Administrative Agent or any Issuing Bank under paragraph (a) or (b) of
this Section, each Lender severally agrees to pay to the Administrative Agent
or such Issuing Bank, as the case may be, such Lender’s Applicable Percentage
(determined as of the time that the applicable unreimbursed expense or
indemnity payment is sought) of such unpaid amount; provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against the
Administrative Agent or such Issuing Bank in its capacity as such.

          (d)          To
the extent permitted by applicable law, no Borrower shall assert, and each
Borrower hereby waives, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to direct or actual damages) arising out of, in connection with, or as a result
of, this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby, the Transactions, any Revolving Loan or Letter of Credit
or the use of the proceeds thereof. No Indemnitee shall be liable for any
damages arising from the use by unintended recipients of any information or
other materials distributed by it through telecommunications, electronic or
other information transmission systems (including Intralinks, SyndTrak or
similar systems) in connection with this Agreement or the other Loan Documents
or the transactions contemplated hereby or thereby.

          (e)          All
amounts due under this Section shall be payable promptly after written demand
therefor.

          SECTION
9.04.          Successors
and Assigns.

          (a)          The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and permitted assigns
(including any Affiliate of any Issuing Bank that issues any Letter of Credit),
except that no Borrower may assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of each Lender (and any
attempted assignment or transfer by any Borrower without such consent shall be
null and void). Nothing in this Agreement, expressed or implied, shall be
construed to confer upon any Person (other than the parties hereto, their
respective successors and assigns permitted hereby (including any Affiliate of
any Issuing Bank that issues any Letter of Credit) and, to the extent expressly
contemplated hereby, the Related Parties of each of the Administrative Agent,
the Lenders and the Issuing Banks) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

71

          (b)          Any
Lender may assign by novation to one or more assignees (other than the Company
or any Subsidiary) all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Revolving Commitment and the
Revolving Loans at the time owing to it); provided that (i) the
Administrative Agent, the Issuing Banks and, except in the case of an
assignment to a Lender or an Affiliate of a Lender, the Company, must give
their prior written consent to such assignment, which consent shall not be
unreasonably withheld, (ii) except in the case of an assignment to a
Lender or an Affiliate of a Lender or an assignment of the entire remaining
amount of the assigning Lender’s Revolving Commitment, the amount of the
Revolving Commitment of the assigning Lender subject to each such assignment
(determined as of the date the Assignment and Assumption with respect to such
assignment is delivered to the Administrative Agent) shall not be less than
US$5,000,000 unless each of the Company and the Administrative Agent otherwise
consent, (iii) each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender’s rights and obligations under
this Agreement, (iv) the parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Assumption, together with
a processing and recordation fee of US$3,500, and (v) the assignee, if it
shall not be a Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire; and provided further that any consent of the Company
otherwise required under this paragraph shall not be required if a Default has
occurred and is continuing. Subject to acceptance and recording thereof
pursuant to paragraph (d) of this Section, from and after the effective
date specified in each Assignment and Assumption the assignee thereunder shall
be a party hereto and, to the extent of the interest assigned by such
Assignment and Assumption, have the rights and obligations of a Lender under
this Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections 2.14, 2.15, 2.16, 2.20, 2.21
and 9.03). Any assignment or transfer by a Lender of rights or obligations
under this Agreement that does not comply with this paragraph shall be treated
for purposes of this Agreement as a sale by such Lender of a participation in
such rights and obligations in accordance with paragraph (e) of this
Section.

          (c)          The
Administrative Agent, acting for this purpose as an agent of each Borrower,
shall maintain at one of its offices in San Francisco, California a copy of
each Assignment and Assumption delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Revolving
Commitment of, and principal amount of the Revolving Loans and LC Disbursements
owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).
The entries in the Register shall be conclusive absent manifest error, and the
Borrowers, the Administrative Agent, the Issuing Banks 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 Agreement,
notwithstanding notice to the contrary. The Register shall be available for
inspection by the Company, any Issuing Bank and any Lender, at any reasonable
time and from time to time upon reasonable prior notice.

72

          (d)          Upon
its receipt of a duly completed Assignment and Assumption executed by an
assigning Lender and an assignee, the assignee’s completed Administrative
Questionnaire (unless the assignee shall already be a Lender hereunder), the
processing and recordation fee referred to in paragraph (b) of this
Section and any written consent to such assignment required by paragraph (b) of
this Section, the Administrative Agent shall accept such Assignment and
Assumption and promptly record the information contained therein in the
Register. No assignment shall be effective for purposes of this Agreement
unless it has been recorded in the Register as provided in this paragraph.

          (e)          Any
Lender may, without the consent of any Borrower, the Administrative Agent or
any Issuing Bank, sell participations to one or more banks or other entities (a
“Participant”) in all or a portion of such Lender’s rights and
obligations under this Agreement (including all or a portion of its Revolving
Commitment and the Revolving Loans owing to it); provided that
(i) such Lender’s obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations and (iii) the Borrowers,
the Administrative Agent, the other Lenders and the Issuing Banks shall
continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement. Any agreement or
instrument pursuant to which a Lender sells such a participation shall provide
that such Lender shall retain the sole right to enforce this Agreement and to
approve any amendment, modification or waiver of any provision of this
Agreement; provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any
amendment, modification or waiver described in the first proviso to
Section 9.02(b) that affects such Participant. Subject to paragraph (f) of
this Section, each Borrower agrees that each Participant shall be entitled to
the benefits of Sections 2.14, 2.15, 2.16, 2.20 and 2.21 to the same extent as
if it were a Lender and had acquired its interest by assignment pursuant to
paragraph (b) of this Section. To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 9.08 as
though it were a Lender, provided such Participant agrees to be subject
to Section 2.17(c) as though it were a Lender.

          (f)          A
Participant shall not be entitled to receive any greater payment under
Section 2.14, 2.15, 2.16, 2.20 or 2.21 than the applicable Lender would
have been entitled to receive with respect to the participation sold to such
Participant, unless the sale of the participation to such Participant is made
with the Company’s prior written consent. A Participant that would be a Foreign
Lender if it were a Lender shall not be entitled to the benefits of
Section 2.16 unless the Company is notified of the participation sold to such
Participant and such Participant agrees, for the benefit of the Borrowers, to
comply with Section 2.16(e) as though it were a Lender.

          (g)          Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal
Reserve Bank, and this Section shall not apply to any such pledge or assignment
of a security interest; provided that no such pledge or assignment of a
security interest shall release a Lender from any of its obligations hereunder
or substitute any such pledgee or assignee for such Lender as a party hereto.

73

          (h)          Notwithstanding
anything to the contrary contained herein, any Lender (a “Granting Lender”)
may grant to a special purpose funding vehicle (an “SPC”), identified as
such in writing from time to time by the Granting Lender to the Administrative
Agent and the Company, the option to provide to the Borrowers all or any part
of any Revolving Loan that such Granting Lender would otherwise be obligated to
make to the Borrowers pursuant to this Agreement or the option to participate
in any Letter of Credit, as the case may be; provided that
(i) nothing herein shall constitute a commitment by any SPC to make any
Revolving Loan or to participate in any Letter of Credit, (ii) nothing
herein shall relieve the Granting Lender of liability for the performance or
nonperformance by the SPC of the obligations of the Granting Lender under this
Agreement. The making of a Revolving Loan by an SPC or the participation by
such SPC in any Letter of Credit hereunder shall utilize the Revolving
Commitment of the Granting Lender to the same extent, and as if, such Revolving
Loan were made by such Granting Lender or such participation in a Letter of
Credit were paid or taken, as the case may be, by such Granting Lender. Each
party hereto hereby agrees that no SPC shall be liable for any indemnity or
similar payment obligation under this Agreement (all liability for which shall
remain with the Granting Lender). In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior
indebtedness of any SPC, it will not institute against, or join any other
person in instituting against, such SPC any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under the laws of the United
States of America or any State thereof. In addition, notwithstanding anything
to the contrary contained in this Section 9.04, any SPC may (i) with notice to,
but without the prior written consent of, the Company and the Administrative
Agent and without paying any processing fee therefor, assign all or a portion
of its interests in any Revolving Loans or participations in Letters of Credit
to the Granting Lender or to any financial institution (consented to by the
Company and Administrative Agent) providing liquidity and/or credit support to
or for the account of such SPC to support the funding or maintenance of
Revolving Loans and (ii) disclose on a confidential basis any non-public
information relating to its Revolving Loans or participations in any Letters of
Credit to any rating agency, commercial paper dealer or provider of any surety,
guarantee or credit or liquidity enhancement to such SPC.

          SECTION
9.05.          Survival.
All covenants, agreements, representations and warranties made by the Borrowers
herein or in any other Loan Document and in the certificates or other
instruments delivered in connection with or pursuant to this Agreement or any
other Loan Document shall be considered to have been relied upon by the other
parties hereto and thereto and shall survive the execution and delivery of this
Agreement and any other Loan Document and the making of any Revolving Loans and
issuance of any Letters of Credit, regardless of any investigation made by any
such other party or on its behalf and notwithstanding that the Administrative
Agent, any Lender or any Issuing Bank may have had notice or knowledge of any
Default or incorrect representation or warranty at the time any credit is
extended hereunder, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Revolving Loan or any fee or any
other amount payable under this Agreement or any other Loan Document is
outstanding and unpaid or any Letter of Credit is outstanding and so long as
the Revolving Commitments have not expired or terminated. The provisions of
Sections 2.14, 2.15, 2.16, 2.20, 2.21 and 9.03 and Article VII shall survive
and remain in full force and effect regardless of the consummation of the
transactions contemplated hereby, the repayment of the Revolving Loans, the
expiration or termination of the Revolving Commitments or the Letters of Credit
or the termination of this Agreement or any other Loan Document or any
provision hereof or thereof.

74

          SECTION
9.06.          Counterparts;
Integration; Effectiveness. This Agreement may be executed in counterparts
(and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall
constitute a single contract. This Agreement, the other Loan Documents and the
Fee Letter constitute the entire contract among the parties relating to the
subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Except
as provided in Section 4.01, this Agreement shall become effective when it
shall have been executed by the Administrative Agent and when the
Administrative Agent shall have received counterparts hereof which, when taken
together, bear the signatures of each of the other parties hereto, and
thereafter shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. Delivery of an executed
counterpart of a signature page of this Agreement by facsimile or other
electronic imaging means shall be effective as delivery of a manually executed
counterpart of this Agreement.

          SECTION
9.07.          Severability.
Any provision of this Agreement held to be invalid, illegal or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such invalidity, illegality or unenforceability without affecting the
validity, legality and enforceability of the remaining provisions hereof; and
the invalidity of a particular provision in a particular jurisdiction shall not
invalidate such provision in any other jurisdiction.

          SECTION
9.08.          Right of
Setoff. If an Event of Default shall have occurred and be continuing, each
Lender and each Issuing Bank and each of their respective Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted
by law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other obligations at any
time owing by such Issuing Bank, such Lender or such Affiliate to or for the
credit or the account of any Borrower against any of and all the obligations of
such Borrower now or hereafter existing under this Agreement held by such
Issuing Bank or such Lender, irrespective of whether or not such Lender shall
have made any demand under this Agreement and although such obligations may be
contingent or unmatured or are owed to a branch or office of such Lender or
such Issuing Bank different from the branch or office holding such deposit or
owing such obligation. The rights of each Lender and each Issuing Bank under
this Section are in addition to other rights and remedies (including other
rights of setoff) which such Lender and such Issuing Bank may have.

          SECTION
9.09.          Governing
Law; Jurisdiction; Consent to Service of Process. 

          (a)          This
Agreement shall be construed in accordance with and governed by the law of the
State of New York.

75

          (b)          Each
Borrower hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of the Supreme Court of the State of
New York sitting in New York County and of the United States District Court of
the Southern District of New York, and any appellate court from any thereof, in
any action or proceeding arising out of or relating to any Loan Document, or
for recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such New York
State or, to the extent permitted by law, in such Federal court. Each of the
parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement
shall affect any right that the Administrative Agent, any Lender or any Issuing
Bank may otherwise have to bring any action or proceeding relating to this
Agreement or any other Loan Document against any Borrower or its properties in
the courts of any jurisdiction.

          (c)          Each
Borrower hereby irrevocably and unconditionally waives, to the fullest extent
it may legally and effectively do so, any objection which it may now or
hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Agreement or any other Loan Document in any court
referred to in paragraph (b) of this Section. Each of the parties hereto
hereby irrevocably waives, to the fullest extent permitted by law, the defense
of an inconvenient forum to the maintenance of such action or proceeding in any
such court.

          (d)          Each
party to this Agreement (including any Borrowing Subsidiaries) irrevocably
consents to service of process in the manner provided for notices in
Section 9.01. Nothing in this Agreement or any other Loan Document will
affect the right of any party to this Agreement to serve process in any other
manner permitted by law.

          SECTION
9.10.          WAIVER OF
JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

          SECTION
9.11.          Construction.
Article and Section headings and the Table of Contents used herein are for
convenience of reference only, are not part of this Agreement and shall not
affect the construction of, or be taken into consideration in interpreting,
this Agreement. Any Hedge Agreement between any Borrower and any Hedge Party is
an independent agreement governed by the writing provisions of such Hedge
Agreement, which shall remain in full force and effect, unaffected by any
repayment, prepayment, acceleration, reduction, increase or change in the terms
applicable to the Revolving Loans under this Agreement, except as otherwise
expressly provided in such Hedge Agreement, and any payoff statement from the
Administrative Agent relating to this Agreement shall not apply to such Hedge
Agreement except as expressly provided therein.

76

          SECTION
9.12.          Confidentiality.
Each of the Administrative Agent, the Issuing Banks 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) to any other
party to this Agreement, (e) in connection with the exercise of any
remedies hereunder or any suit, action or proceeding relating to this Agreement
or any other Loan Document or any Hedge Agreement to which any Borrower and any
Hedge Party are parties or the enforcement of rights hereunder or thereunder,
(f) subject to an agreement containing provisions substantially the same
as those of this Section, to (i) any assignee of or participant in, or any
prospective assignee of or participant in, any of its rights or obligations
under this Agreement or (ii) any actual or prospective counterparty to any
swap or derivative transaction relating to the Company and its obligations, or
any advisor of any such counterparty, (g) with the consent of the Company
or (h) to the extent such Information (i) becomes publicly available
other than as a result of a breach of this Section or (ii) becomes
available to the Administrative Agent, any Lender or any Issuing Bank on a
nonconfidential basis from a source other than the Company. For the purposes of
this Section, “Information” means all information received from the
Company relating to the Company or its business, other than any such
information that is available to the Administrative Agent, any Issuing Bank or
any Lender on a nonconfidential basis prior to disclosure by the Company; provided
that, in the case of information received from the Company after the date
hereof, such information is clearly identified at the time of delivery as
confidential. Any Person required to maintain the confidentiality of
Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of
care to maintain the confidentiality of such Information as such Person would
accord to its own confidential information.

          SECTION
9.13.          Conversion
of Currencies.

          (a)          If,
for the purpose of obtaining judgment in any court, it is necessary to convert
a sum owing hereunder in one currency into another currency, each party hereto
(including any Borrowing Subsidiary) agrees, to the fullest extent that it may
effectively do so, that the rate of exchange used shall be that at which in
accordance with normal banking procedures in the relevant jurisdiction the
first currency could be purchased with such other currency on the Business Day
immediately preceding the day on which final judgment is given.

          (b)          The
obligations of each Borrower in respect of any sum due to any party hereto or
any holder of the obligations owing hereunder (the “Applicable Creditor”)
shall, notwithstanding any judgment in a currency (the “Judgment Currency”)
other than the currency in which such sum is stated to be due hereunder (the “Agreement
Currency”), be discharged only to the extent that, on the Business Day
following receipt by the Applicable Creditor of any sum adjudged to be so due
in the Judgment Currency, the Applicable Creditor may in accordance with normal
banking procedures in the relevant jurisdiction 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 Applicable Creditor in the
Agreement Currency, such Borrower agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify the Applicable Creditor against
such loss. The obligations of the Borrowers contained in this Section 9.13
shall survive the termination of this Agreement and the payment of all other
amounts owing hereunder.

77

          SECTION
9.14.          Interest
Rate Limitation. Notwithstanding anything herein to the contrary, if at any
time the interest rate applicable to any Revolving Loan, together with all
fees, charges and other amounts which are treated as interest on such Revolving
Loan under applicable law (collectively the “Charges”), shall exceed the
maximum lawful rate (the “Maximum Rate”) which may be contracted for,
charged, taken, received or reserved by the Lender holding such Revolving Loan
in accordance with applicable law, the rate of interest payable in respect of
such Revolving Loan hereunder, together with all Charges payable in respect
thereof, shall be limited to the Maximum Rate and, to the extent lawful, the
interest and Charges that would have been payable in respect of such Revolving
Loan but were not payable as a result of the operation of this Section shall be
cumulated and the interest and Charges payable to such Lender in respect of
other Revolving Loans or periods shall be increased (but not above the Maximum
Rate therefor) until such cumulated amount, together with interest thereon at
the Federal Funds Effective Rate to the date of repayment, shall have been
received by such Lender.

          SECTION
9.15.          Release of
Subsidiary Guarantors. Notwithstanding any contrary provision herein or in
any other Loan Document, if all the Equity Interests of any Subsidiary
Guarantor owned by the Company and the Subsidiaries shall be sold to one or
more Persons (other than the Company or an Affiliate of the Company) in a
transaction permitted under this Agreement, and if the Company shall request
the release of such Subsidiary Guarantor from its obligations under the
Guarantee Agreement and the Indemnity, Subrogation and Contribution Agreement
and shall deliver to the Administrative Agent a certificate to the effect that
such release will comply with the terms of this Agreement, the Administrative
Agent, if satisfied that the applicable certificate is correct, shall, without
the consent of any Lender, execute and deliver all such instruments, releases,
or other agreements, and take all such further actions, as shall be necessary
to effectuate the release of such Subsidiary Guarantor and shall promptly
notify each Lender of such release.

          SECTION
9.16.          USA Patriot
Act. Each Lender and each Issuing Bank hereby notifies the Borrowers that
pursuant to the requirements of the USA Patriot Act, it is required to obtain,
verify and record information that identifies the Borrowers, which information
includes the names and addresses of the Borrowers and other information that
will allow such Lender to identify the Borrowers in accordance with its
requirements. The Borrowers shall promptly following a request by the
Administrative Agent or any Lender, provide all documentation and other
information that the Administrative Agent or such Lender reasonably requests in
order to comply with its ongoing obligations under applicable “know your
customer” and anti-money laundering rules and regulations including the USA
Patriot Act.

          SECTION
9.17.          No
Fiduciary Relationship. The Company, on behalf of itself and its
Subsidiaries, agrees that in connection with all aspects of the transactions
contemplated hereby and any communications in connection therewith, the
Company, its Subsidiaries and their respective Affiliates, on the one hand, and
the Administrative Agent, the Lenders and their respective Affiliates, on the
other hand, will have a business relationship that does not create, by
implication or otherwise, any fiduciary duty on the part of the Administrative
Agent, any Lender or any of their respective Affiliates, and no such duty will
be deemed to have arisen in connection with any such transactions or
communications.

78

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

	
 

	
 

	
 

	
 

	
 

	
 

	
THE VALSPAR CORPORATION

	
 

	
 

	
 

	
 

	
by

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
Tyler Treat

	
 

	
 

	
 

	
Title:

	
Treasurer

	
 

	
 

	
 

	
THE VALSPAR (SWITZERLAND) HOLDING CORPORATION AG

	
 

	
 

	
 

	
 

	
By

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
Tyler Treat

	
 

	
 

	
 

	
Title:

	
Authorized Signatory

	
 

	
 

	
 

	
 

	
 

	
 

	
ENGINEERED POLYMER SOLUTIONS, INC.

	
 

	
 

	
 

	
 

	
by

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
Tyler Treat

	
 

	
 

	
 

	
Title:

	
Authorized Signatory

	
 

	
 

	
 

	
 

	
 

	
 

	
VALSPAR FINANCE CORPORATION

	
 

	
 

	
 

	
 

	
by

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
Tyler Treat

	
 

	
 

	
 

	
Title:

	
Authorized Signatory

	
 

	
 

	
 

	
 

	
 

	
 

	
VALSPAR COATINGS FINANCE CORPORATION

	
 

	
 

	
 

	
 

	
by

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
Tyler Treat

	
 

	
 

	
 

	
Title:

	
Authorized Signatory

[Signature Page to Credit
Agreement]

	
 

	
 

	
 

	
 

	
 

	
 

	
VALSPAR SOURCING, INC.

	
 

	
 

	
 

	
 

	
by

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
Tyler Treat

	
 

	
 

	
 

	
Title:

	
Authorized Signatory

	
 

	
 

	
 

	
 

	
 

	
 

	
THE VALSPAR (UK) HOLDING CORPORATION LTD.

	
 

	
 

	
 

	
 

	
by

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
Tyler Treat

	
 

	
 

	
 

	
Title:

	
Authorized Signatory

	
 

	
 

	
 

	
 

	
 

	
 

	
VALSPAR CREDIT CORPORATION

	
 

	
 

	
 

	
 

	
by

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
Tyler Treat

	
 

	
 

	
 

	
Title:

	
Authorized Signatory

[Signature Page to Credit
Agreement]

	
 

	
 

	
 

	
 

	
 

	
WELLS FARGO BANK, NATIONAL ASSOCIATION, as
 Administrative Agent, an Issuing Bank, and a Lender

	
 

	
 

	
 

	
 

	
by

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
Title:

[Signature Page to Credit
Agreement]

	
 

	
 

	
 

	
 

	
 

	
BANK OF AMERICA, N.A., as Syndication Agent and a
 Lender,

	
 

	
 

	
 

	
 

	
by

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
Title:

82

	
 

	
 

	
 

	
 

	
 

	
WACHOVIA BANK, NATIONAL ASSOCIATION, as an Issuing
 Bank,

	
 

	
 

	
 

	
 

	
 

	
 

	
by

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
Title:

83

	
 

	
 

	
 

	
 

	
 

	
DEUTSCHE BANK AG NEW YORK BRANCH, as Documentation
 Agent and a Lender,

	
 

	
 

	
 

	
 

	
by

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
Title:

84

	
 

	
 

	
 

	
 

	
 

	
THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as
 Documentation Agent and a Lender,

	
 

	
 

	
 

	
 

	
 

	
 

	
by

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
Title:

85

	
 

	
 

	
 

	
 

	
 

	
GOLDMAN SACHS BANK USA, as a Lender,

	
 

	
 

	
 

	
 

	
 

	
 

	
by

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
Title:

86

	
 

	
 

	
 

	
 

	
 

	
PNC BANK, NATIONAL ASSOCIATION, as a Lender,

	
 

	
 

	
 

	
 

	
 

	
 

	
by

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
Title:

87

	
 

	
 

	
 

	
 

	
 

	
U.S. BANK NATIONAL ASSOCIATION, as a Lender,

	
 

	
 

	
 

	
 

	
 

	
 

	
by

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
Title:

88

	
 

	
 

	
 

	
 

	
 

	
COMMONWEALTH BANK OF AUSTRALIA, as a Lender,

	
 

	
 

	
 

	
 

	
 

	
 

	
by

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
Title:

89

	
 

	
 

	
 

	
 

	
 

	
COMERICA BANK, as a Lender,

	
 

	
 

	
 

	
 

	
 

	
 

	
by

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
Title:

90

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