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Exhibit 10.1    
    

 

INTERIM 364-DAY CREDIT AGREEMENT  

PLAINS ALL AMERICAN PIPELINE, L.P., as Borrower, 

BANK
ONE, NA, as Administrative Agent, 

FLEET
NATIONAL BANK,

as Syndication Agent, 

WACHOVIA
BANK, NATIONAL ASSOCIATION,

as Documentation Agent, 

BANC
ONE CAPITAL MARKETS, INC. and FLEET SECURITIES, INC.,

as Co-Lead Arrangers 

and 

BANC
ONE CAPITAL MARKETS, INC., as Sole Book Manager, 

and
CERTAIN FINANCIAL INSTITUTIONS, as Lenders 

$200,000,000
364-Day Revolving Credit Facility 

April 1, 2004  

 

  

TABLE OF CONTENTS  

	 
	 	Page

	ARTICLE I—Definitions and References	 	1
	 	Section 1.1. Defined Terms	 	1
	 	Section 1.2. Exhibits and Schedules; Additional Definitions	 	12
	 	Section 1.3. Amendment of Defined Instruments	 	12
	 	Section 1.4. References and Titles	 	12
	 	Section 1.5. Calculations and Determinations	 	12
	

ARTICLE II—The Loans	
 	

13
	 	Section 2.1. Commitments to Lend; Notes	 	13
	 	Section 2.2. Requests for Loans	 	13
	 	Section 2.3. Continuations and Conversions of Existing Loans	 	14
	 	Section 2.4. Use of Proceeds	 	15
	 	Section 2.5. Interest Rates and Fees	 	15
	 	Section 2.6. Intentionally Omitted	 	16
	 	Section 2.7. Conversion to Term Loan	 	16
	 	Section 2.8. Optional Prepayments	 	16
	 	Section 2.9. Mandatory Commitment Reductions and Prepayments	 	16
	

ARTICLE III—Payments to Lenders	
 	

17
	 	Section 3.1. General Procedures	 	17
	 	Section 3.2. Capital Reimbursement	 	17
	 	Section 3.3. Increased Cost of LIBOR Loans	 	18
	 	Section 3.4. Notice; Change of Applicable Lending Office	 	18
	 	Section 3.5. Availability	 	18
	 	Section 3.6. Funding Losses	 	19
	 	Section 3.7. Reimbursable Taxes	 	19
	 	Section 3.8. Replacement of Lenders	 	20
	

ARTICLE IV—Conditions Precedent to Lending	
 	

20
	 	Section 4.1. Documents to be Delivered	 	20
	 	Section 4.2. Additional Conditions Precedent	 	22
	

ARTICLE V—Representations and Warranties	
 	

23
	 	Section 5.1. No Default	 	23
	 	Section 5.2. Organization and Good Standing	 	23
	 	Section 5.3. Authorization	 	23
	 	Section 5.4. No Conflicts or Consents	 	23
	 	Section 5.5. Enforceable Obligations	 	23
	 	Section 5.6. Initial Financial Statements	 	23
	 	Section 5.7. Other Obligations and Restrictions	 	23
	 	Section 5.8. Full Disclosure	 	24
	 	Section 5.9. Litigation	 	24
	 	Section 5.10. ERISA Plans and Liabilities	 	24
	 	Section 5.11. Compliance with Permits, Consents and Law	 	24
	 	Section 5.12. Environmental Laws	 	25
	 	Section 5.13. Borrower's Subsidiaries	 	25
	 	Section 5.14. Title to Properties	 	25
	 	Section 5.15. Government Regulation	 	25
	 	Section 5.16. Insider	 	25
	 	Section 5.17. Solvency	 	25
	 	Section 5.18. Not a "Reportable Transaction"	 	26
	 	 	 

	

ARTICLE VI—Affirmative Covenants	
 	

26
	 	Section 6.1. Payment and Performance	 	26
	 	Section 6.2. Books, Financial Statements and Reports	 	26
	 	Section 6.3. Other Information and Inspections	 	27
	 	Section 6.4. Notice of Material Events	 	28
	 	Section 6.5. Maintenance of Existence, Qualifications and Assets	 	28
	 	Section 6.6. Payment of Taxes, etc.	 	28
	 	Section 6.7. Insurance	 	28
	 	Section 6.8. Compliance with Agreements and Law	 	29
	 	Section 6.9. Guaranties of Subsidiaries	 	29
	

ARTICLE VII—Negative Covenants	
 	

29
	 	Section 7.1. Subsidiary Indebtedness	 	29
	 	Section 7.2. Limitation on Liens	 	30
	 	Section 7.3. Limitation on Mergers	 	31
	 	Section 7.4. Limitation on New Businesses	 	32
	 	Section 7.5. Transactions with Affiliates	 	32
	 	Section 7.6. Limitation on Distributions	 	32
	 	Section 7.7. Restricted Contracts	 	32
	 	Section 7.8. Debt Coverage Ratio	 	33
	 	Section 7.9. Interest Coverage Ratio	 	33
	 	Section 7.10. Unrestricted Subsidiaries	 	33
	 	Section 7.11. No Negative Pledges	 	34
	

ARTICLE VIII—Events of Default and Remedies	
 	

34
	 	Section 8.1. Events of Default	 	34
	 	Section 8.2. Remedies	 	36
	

ARTICLE IX—Administrative Agent	
 	

36
	 	Section 9.1. Appointment and Authority	 	36
	 	Section 9.2. Exculpation, Administrative Agent's Reliance, Etc.	 	36
	 	Section 9.3. Credit Decisions	 	37
	 	Section 9.4. Indemnification	 	37
	 	Section 9.5. Rights as Lender	 	38
	 	Section 9.6. Sharing of Set-Offs and Other Payments	 	38
	 	Section 9.7. Investments	 	38
	 	Section 9.8. Benefit of Article IX	 	38
	 	Section 9.9. Resignation	 	39
	 	Section 9.10. Other Agents	 	39
	

ARTICLE X—Miscellaneous	
 	

39
	 	Section 10.1. Waivers and Amendments; Acknowledgments	 	39
	 	Section 10.2. Survival of Agreements; Cumulative Nature	 	40
	 	Section 10.3. Notices	 	40
	 	Section 10.4. Payment of Expenses; Indemnity	 	41
	 	Section 10.5. Joint and Several Liability; Parties in Interest; Assignments; Replacement Notes	 	42
	 	Section 10.6. Confidentiality	 	44
	 	Section 10.7. Governing Law; Submission to Process	 	44
	 	Section 10.8. Limitation on Interest	 	45
	 	Section 10.9. Right of Offset	 	46
	 	Section 10.10. Termination; Limited Survival	 	46
	 	Section 10.11. Severability	 	46
	 	Section 10.12. Counterparts	 	46
	 	Section 10.13. Waiver of Jury Trial, Punitive Damages, etc.	 	46

Schedules and Exhibits:  

Schedule 1—Lender
Schedule

Schedule 2—Disclosure Schedule

Schedule 3—Pricing Grid 

Exhibit A—Note

Exhibit B—Borrowing Notice

Exhibit C—Continuation/Conversion Notice

Exhibit D—Certificate Accompanying Financial Statements

Exhibit E-1—Opinion of In-House Counsel for Restricted Persons

Exhibit E-2—Opinion of Fulbright & Jaworski L.L.P., Counsel for Restricted Persons

Exhibit E-3—Opinion of Bennett Jones, Canadian Counsel for Restricted Persons

Exhibit F—Assignment and Acceptance Agreement 

 
 

INTERIM 364-DAY CREDIT AGREEMENT    
    

        THIS INTERIM 364-DAY CREDIT AGREEMENT is made as of April 1, 2004, by and among PLAINS ALL AMERICAN PIPELINE, L.P., a Delaware limited
partnership ("Borrower"), BANK ONE, NA, as administrative agent (in such capacity, "Administrative
Agent"), FLEET NATIONAL BANK, as syndication agent (in such capacity, "Syndication Agent"), WACHOVIA BANK, NATIONAL ASSOCIATION,
as documentation agent (in such capacity, "Documentation Agent"), BANC ONE CAPITAL MARKETS, INC. and FLEET SECURITIES INC., as
co-lead arrangers, BANC ONE CAPITAL MARKETS, INC. as sole book manager, and the Lenders referred to below. In consideration of the mutual covenants and agreements contained herein
the parties hereto agree as follows: 

W
I T N E S S E T H 

        In
consideration of the mutual covenants and agreements contained herein and in consideration of the loans which may hereafter by made by Lenders to Borrower, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

ARTICLE
I—Definitions and References

        Section 1.1.    Defined Terms.    As used in this Agreement, each of the following terms has the meaning given
to such term in this Section 1.1 or in the sections and subsections referred to below: 

        "Acquisition Period" means the period beginning, at the election of Borrower, with the funding date of the purchase price for a Specified
Acquisition and ending on the earliest of (a) the third following Fiscal Quarter end, (b) Borrower's receipt of proceeds of a Specified Equity Offering; and (c) Borrower's
election in writing to terminate such Acquisition Period (provided, at the time of such election, the Debt Coverage Ratio shall not, on a pro forma
basis, exceed 4.50 to 1.00); provided, however, if the Debt Coverage Ratio exceeds 4.50 to 1.00 at the
end of the Fiscal Quarter ending next following such funding date, then the Acquisition Period shall be deemed to have commenced as of such funding date;  provided, further, during any Acquisition Period, no additional Acquisition Period shall commence, nor
shall such Acquisition Period be extended, by any subsequent Specified Acquisition until the current Acquisition Period shall have expired and Borrower shall be in compliance with
Section 7.8(ii). 

        "Administrative Agent" means Bank One, NA, as Administrative Agent hereunder, and its successors in such capacity. 

        "Affiliate" means, as to any Person, each other Person that directly or indirectly (through one or more intermediaries or otherwise)
controls, is controlled by, or is under common control with, such Person. A Person shall be deemed to be "controlled by" any other Person if such other Person possesses, directly or indirectly, power
to direct or cause the direction of the management and policies of such Person whether by contract or otherwise. 

        "Agreement" means this Credit Agreement. 

        "Applicable Lending Office" means, for each Lender and for each Type of Loan, the "Lending Office" of such Lender (or of an Affiliate of
such Lender) designated for such Type of Loan on the Lender Schedule or such other office of such Lender (or an Affiliate of such Lender) as such Lender may from time to time specify to Administrative
Agent and Borrower by written notice in accordance with the terms hereof as the office by which its Loans of such Type are to be made and maintained. 

        "Applicable Margin" means, as to any Type of Loan, the percent per annum set forth on the Pricing Grid as the "Applicable Margin" for such
Type of Loan, based on the Applicable Rating Level in effect on such date. Changes in the Applicable Margin will occur automatically without prior notice as changes in the Applicable Rating Level
occur. Administrative Agent will give notice promptly to Borrower and Lenders of changes in the Applicable Margin. 

 

        "Applicable Rating Level" means for any day, the level set forth below that corresponds to the PAA Debt Rating by the Ratings Agencies
applicable on such day; provided, in the event the PAA Debt Rating by the Ratings Agencies differs by one level, the higher PAA Debt Rating shall apply;  provided
further, in the event the PAA Debt Rating by the Ratings Agencies differs by more than one level, the PAA Debt Rating one level above the lower
PAA Debt Rating shall apply. As used in this definition, ">"means a rating equal to or more favorable than and "<" means a rating less favorable than. 

	Rating Level
 
	 	S&P
	 	Moody's

	Level I	 	> BBB+	 	> Baa1
	Level II	 	BBB	 	Baa2
	Level III	 	BBB-	 	Baa3
	Level IV	 	< BBB-	 	< Baa3

If
either of the Rating Agencies shall not have in effect a PAA Debt Rating or if the rating system of either of the Rating Agencies shall change, or if either of the Rating Agencies shall cease to be
in the business of rating corporate debt obligations, Borrower and Majority 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, but until such an agreement shall be reached, the Applicable Rating Level shall be based only upon the PAA Debt Rating by the remaining Rating Agency. 

        "Base Rate" means the higher of (i) the variable per annum rate of interest so designated from time to time by Administrative Agent
as its "prime rate", or (ii) the Federal Funds Rate plus one-half percent (0.5%) per annum. The "prime rate" is a reference rate and does not necessarily represent the lowest or
best rate being charged to any customer. Changes in the Base Rate resulting from changes in the "prime rate" shall take place immediately without notice or demand of any kind. 

        "Base Rate Loan" means a Loan to Borrower which does not bear interest at a rate based upon the LIBOR Rate. 

        "Borrower" means Plains All American Pipeline, L.P., a Delaware limited partnership. 

        "Borrowing" means a borrowing of new Loans of a single Type pursuant to Section 2.2 or a Continuation or Conversion of existing
Loans into a single Type (and, in the case of LIBOR Loans, with the same Interest Period) pursuant to Section 2.3. 

        "Borrowing Notice" means a written or telephonic request, or a written confirmation, made by a Borrower which meets the requirements of
Section 2.2. 

        "Business Day" means any day, other than a Saturday, Sunday or day which shall be in Chicago, Illinois a legal holiday or day on which
banking institutions are required or authorized to close. Any Business Day in any way relating to LIBOR Loans (such as the day on which an Interest Period begins or ends) must also be a day on which
commercial banks settle payments in London. 

        "Capital Lease" means a lease with respect to which the lessee is required concurrently to recognize the acquisition of an asset and the
incurrence of a liability in accordance with GAAP. 

        "Capital Lease Obligation" means, with respect to any Person and a Capital Lease, the amount of the obligation of such Person as the
lessee under such Capital Lease which would, in accordance with GAAP, appear as a liability on a balance sheet of such Person. 

        "Cash and Carry Purchases" means purchases of Petroleum Products for physical storage or in storage or in transit in pipelines which has
been hedged by either a NYMEX contract, an OTC contract or a contract for physical delivery. 

2

 

        "Cash Equivalents" means Investments in: 

        (a)   marketable
obligations, maturing within 12 months after acquisition thereof, issued or unconditionally guaranteed by the United States of America or the federal
government of Canada or an instrumentality or agency thereof and entitled to the full faith and credit of the United States of America or the federal government of Canada, as the case may be; 

        (b)   demand
deposits and time deposits (including certificates of deposit) maturing within 12 months from the date of deposit thereof, (i) with any office of
any Lender or (ii) with a domestic office of any national, state or provincial bank or trust company which is organized under the Laws of the United States of America or any state therein, or
the federal government of Canada or any province therein, which has capital, surplus and undivided profits of at least $500,000,000, and whose long term certificates of deposit are rated at least Aa3
by Moody's or AA- by S&P; 

        (c)   repurchase
obligations with a term of not more than seven days for underlying securities of the types described in subsection (a) above entered into with
(i) any Lender or (ii) any other commercial bank meeting the specifications of subsection (b) above; 

        (d)   open
market commercial paper, maturing within 270 days after acquisition thereof, which are rated at least P-1 by Moody's or A-1 by S&P;
and 

        (e)   money
market or other mutual funds substantially all of whose assets comprise securities of the types described in subsections (a) through (d) above. 

        "Change of Control" means the occurrence of any of the following events: 

          (i)  Qualifying
Directors cease for any reason to constitute collectively a majority of the members of the board of directors of GP LLC (the "Board") then in office; 

         (ii)  GP
LLC shall cease to be, directly or indirectly, the sole legal and beneficial owner (within the meaning of Rule 13d-3 under the Securities Exchange
Act of 1934, as amended) of all of the general partner interests (including all securities which are convertible into general partner interests) of General Partner. 

        (iii)  General
Partner shall cease to be, directly or indirectly, the sole legal and beneficial owner (as defined above) of all of the general partner interests (including
all securities which are convertible into general partner interests) of Borrower; or 

        (iv)  Neither
General Partner nor Borrower shall continue to be, directly or indirectly, the sole legal and beneficial owner of the general partner interest in Plains
Marketing and Plains Pipeline. 

As
used herein, "Qualifying Director" means (i) any Person designated by any Qualifying Owner as its representative on the Board, (ii) so
long as Qualifying Owners own a majority of the ownership interests
of GP LLC entitling the holders thereof to vote in elections for directors of GP LLC, any Person elected by a majority of such owners of GP LLC entitled to vote thereon, and (iii) the chief
executive officer of GP LLC, and "Qualifying Owner" means Plains Resources Inc., Kayne Anderson Investment Management, EnCap Investments LLC,
Sable Minerals, or any Affiliate of any of the foregoing. 

        "Co-Agent" shall have the meaning given that term in Section 9.10. 

        "Code" means the Internal Revenue Code of 1986, as amended from time to time, together with all rules and regulations promulgated with
respect thereto. 

        "Commitment" means $200,000,000, as may be reduced from time to time pursuant to Section 2.5 or Section 2.9. Each Lender's
Commitment shall be the amount set forth on the Lender Schedule. 

3

 

        "Commitment Fee Rate" means, on any day, the rate per annum set forth on the Pricing Grid as the "Commitment Fee Rate" based on the
Applicable Rating Level on such date. Changes in the applicable Commitment Fee Rate will occur automatically without prior notice as changes in the Applicable Rating Level occur. Administrative Agent
will give notice promptly to Borrower and Lenders of changes in the Commitment Fee Rate. 

        "Commitment Period" means the period from and including the date hereof until the Conversion Date (or, if earlier, the day on which the
obligation of Lenders to make Loans to Borrower hereunder has been terminated or the day on which any of the Notes first becomes due and payable in full). 

        "Consolidated" refers to the consolidation of any Person, in accordance with GAAP, with its properly consolidated subsidiaries. References
herein to a Person's Consolidated financial statements, financial position, financial condition, liabilities, etc. refer to the consolidated financial statements, financial position, financial
condition, liabilities, etc. of such Person and its properly consolidated subsidiaries. 

        "Consolidated EBITDA" means, for any period, the sum of (1) the Consolidated Net Income during such period,  plus (2) all interest expense that was deducted in
determining such Consolidated Net Income for such period,  plus (3) all income taxes (including any franchise taxes to the extent based upon net income) that were deducted in determining such
Consolidated
Net Income, plus (4) all depreciation, amortization (including amortization of good will and debt issue costs) and other non-cash
charges (including any provision for the reduction in the carrying value of assets recorded in accordance with GAAP) which were deducted in determining such Consolidated Net
Income, plus (5) up to $20,000,000 of any cash payments and related payroll taxes made by Borrower prior to June 30, 2004 pursuant to the Plains All American GP LLC 1998
Long-Term Incentive Plan as in effect on the date hereof in lieu of delivery of units due certain holders of such Long-Term Incentive Plan,  minus (6) all non-cash items of income which were
included in determining such Consolidated Net Income. 

        "Consolidated Funded Indebtedness" means as of any date, the sum of the following (without duplication): (i) the outstanding
principal amount of all Indebtedness which is classified as "long-term indebtedness" on a consolidated balance sheet of Borrower and its Consolidated Subsidiaries (excluding Unrestricted
Subsidiaries) prepared as of such date in accordance with GAAP (subject to year-end audit adjustments with respect to non-year end periods) and any current maturities and other
principal amount in respect of such Indebtedness due within one year but which was classified as "long-term indebtedness" at the creation thereof; (ii) the outstanding principal
amount of Indebtedness for borrowed money of Borrower and its Consolidated Subsidiaries (excluding Unrestricted Subsidiaries) outstanding under a revolving credit, term or similar agreement (and
renewals and extensions thereof); and (iii) the outstanding principal amount of Indebtedness in respect of Capital Leases of Borrower and its Consolidated Subsidiaries (excluding Unrestricted
Subsidiaries); provided, however, Consolidated Funded Indebtedness shall not, if otherwise applicable,
include (x) Indebtedness in respect of letters of credit, (y) Indebtedness incurred to finance Cash and Carry Purchases or (z) margin deposits. 

        "Consolidated Net Income" means, for any period, Borrower's and its Subsidiaries' (excluding Unrestricted Subsidiaries) gross revenues for
such period, including any cash dividends or distributions actually received from any other Person during such period, minus Borrower's and its Subsidiaries' (excluding Unrestricted Subsidiaries)
expenses and other proper charges against income (including taxes on income, to the extent imposed), determined on a Consolidated basis after eliminating earnings or losses attributable to outstanding
minority interests and excluding the net earnings of any Person other than a Subsidiary in which Borrower or any of its Subsidiaries (excluding Unrestricted Subsidiaries) has an ownership interest.
Consolidated Net Income shall not include (i) any gain or loss from the sale of assets, (ii) any extraordinary gains or losses, or (iii) any non-cash gains or losses
resulting from mark to market activity as a result of the implementation of SFAS 133 or EITF 98-10. In addition, Consolidated 

4

 

Net
Income shall not include the cost or proceeds of purchasing or selling options which are used to hedge future activity, until the period in which such hedged future activity occurs. 

        "Consolidated Tangible Net Worth" means the remainder of (i) all Consolidated assets, as determined in accordance with GAAP, of
Borrower and its Subsidiaries (excluding Unrestricted Subsidiaries) minus (ii) the sum of (a) Borrower's Consolidated liabilities, as
determined in accordance with GAAP, (b) the book value of any equity interests in any of Borrower's Subsidiaries (excluding Unrestricted Subsidiaries) which equity interests are owned by a
Person other than Borrower or a Wholly Owned Subsidiary of Borrower; and (c) the net book value of all assets that would be treated as intangible under GAAP, including goodwill, trademarks,
trade names and service marks. The effect of any
increase or decrease of net worth in any period as a result of items of income or loss not reflected in the determination of net income but reflected in the determination of comprehensive income (to
the extent provided under GAAP as in effect on the date hereof) shall be excluded in determining Consolidated Tangible Net Worth. 

        "Contango Credit Agreement" means that certain Uncommitted Senior Secured Discretionary Contango Facility Credit Agreement dated
November 21, 2003 among Plains Marketing, Fleet National Bank, as administrative agent, and the lenders named therein. 

        "Continue", "Continuation" and "Continued"
shall refer to the continuation pursuant to Section 2.3 of a LIBOR Loan as a LIBOR Loan from one Interest Period to the next Interest Period. 

        "Continuation/Conversion Notice" means a written or telephonic request, or a written confirmation, made by Borrower which meets the
requirements of Section 2.3. 

        "Convert, "Conversion" and "Convert"
refers to a conversion pursuant to Section 2.3 of one Type of Loan into another Type of Loan. 

        "Conversion Date" means March 31, 2005. 

        "Debt Coverage Ratio" shall have the meaning given that term in Section 7.8. 

        "Default" means any Event of Default and any default, event or condition which would, with the giving of any requisite notices and the
passage of any requisite periods of time, constitute an Event of Default. 

        "Default Rate" means, at the time in question, two percent (2%) per annum plus: 

        (a)   the
LIBOR Rate plus the Applicable Margin then in effect for each LIBOR Loan (up to the end of the applicable Interest Period), 

        (b)   the
Base Rate plus the Applicable Margin then in effect for each Base Rate Loan, 

provided,
however, the Default Rate shall never exceed the Highest Lawful Rate. 

        "Default Rate Period" means (i) any period during which an Event of Default, other than pursuant to Section 8.1
(a) or (b), is continuing, provided that such period shall not begin until notice of the commencement of the Default Rate has been given to Borrower by Administrative Agent upon the instruction
by Majority Lenders and (ii) any period during which any Event of Default pursuant to Section 8.1 (a) or (b) is continuing unless Borrower has been notified otherwise by
Administrative Agent upon the instruction by Majority Lenders. 

        "Disclosure Schedule" means Schedule 2 hereto. 

        "Distribution" means (a) any dividend or other distribution (whether in cash or other property, but excluding dividends or other
distributions payable in equity interests in Borrower) with respect to any equity interest of Borrower, (b) any payment (whether in cash or other property, but excluding dividends or other
distributions payable in equity interests in Borrower), including any sinking fund or 

5

 

similar
deposit, on account of the retirement, redemption, purchase, cancellation, termination or other acquisition for value of any equity interest of Borrower or (c) any other payment by
Borrower to any holder of equity interests of Borrower with respect to such equity interests held thereby other than payments made with equity interests in Borrower. 

        "Dollars" and "$" means the lawful currency of the United States of America, except where
otherwise specified. 

        "Eligible Transferee" means a Person which either (a) is a Lender, or (b) is consented to as an Eligible Transferee by
Administrative Agent and, so long as no Default or Event of Default is continuing, by Borrower, which consents in each case will not be unreasonably withheld;  provided no Person organized outside the
United States may be an Eligible Transferee if Borrower (or, prior to the effectiveness of any such transfer,
Borrower notifies the Administrative Agent that any other Restricted Person) would be required to pay withholding taxes on interest or principal owed to such Person. 

        "Environmental Laws" means any and all Laws relating to the environment or to emissions, discharges, releases or threatened releases of
pollutants, contaminants, chemicals, or industrial, toxic or hazardous substances or wastes into the environment including ambient air, surface water, ground water, or land, or otherwise relating to
the manufacture, processing, distribution, use, treatment, storage, disposal,
transport, or handling of pollutants, contaminants, chemicals, or industrial, toxic or hazardous substances or wastes. 

        "ERISA" means the Employee Retirement Income Security Act of 1974, as amended from time to time, together with all rules and regulations
promulgated with respect thereto. 

        "ERISA Affiliate" means each Restricted Person and all members of a controlled group of corporations and all trades or businesses (whether
or not incorporated) under common control that, together with such Restricted Person, are treated as a single employer under Section 414 of the Code. 

        "ERISA Plan" means any employee pension benefit plan subject to Title IV of ERISA maintained by any ERISA Affiliate with respect to which
any Restricted Person has a fixed or contingent liability. 

        "Event of Default" has the meaning given to such term in Section 8.1.  

        "Federal Funds Rate" means, for any day, the rate per annum (rounded upwards, if necessary, to the nearest
1/1000th of one percent) equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as
published by the Federal Reserve Bank of New York on the Business Day next succeeding such day, provided that (i) if the day for which such rate is to be determined is not a Business Day, the
Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (ii) if such rate is not so
published for any day, the Federal Funds Rate for such day shall be the average rate quoted to Administrative Agent on such day on such transactions as determined by Administrative Agent. 

        "Fiscal Quarter" means a three-month period ending on March 31, June 30, September 30 or December 31 of any
year. 

        "Fiscal Year" means a twelve-month period ending on December 31 of any year. 

        "GAAP" means those generally accepted accounting principles and practices which are recognized as such by the Financial Accounting
Standards Board (or any generally recognized successor) and which, in the case of Borrower and its Consolidated Subsidiaries, are applied for all periods after the date hereof in a manner consistent
with the manner in which such principles and practices were applied to the Initial Financial Statements. If any change in any accounting principle or practice is required by the Financial Accounting
Standards Board (or any such successor) in order for such principle or practice to continue as a generally accepted accounting principle or practice, all reports and financial 

6

 

statements
required hereunder with respect to Borrower or with respect to Borrower and its Consolidated Subsidiaries may be prepared in accordance with such change, but all calculations and
determinations to be made hereunder may be made in accordance with such change only after notice of such change is given to each Lender and Majority Lenders agree to such change insofar as it affects
the accounting of Borrower or of Borrower and its Consolidated Subsidiaries. 

        "General Partner" means Plains AAP, L.P., a Delaware limited partnership, in its capacity as the sole general partner of Borrower. 

        "GP LLC" means Plains All American GP LLC, a Delaware limited liability company. 

        "Guarantors" means, as of the date hereof, all of Borrower's Subsidiaries, other than 3794865 Canada Ltd., Plains LPG Services GP
LLC, Plains LPG Services, L.P. and Atchafalaya Pipeline, L.L.C. and any other Person who has guaranteed some or all of the Obligations and who has been accepted by Administrative Agent as a Guarantor
or any Subsidiary of Borrower which now or hereafter executes and delivers a guaranty to Administrative Agent pursuant to Section 6.9. 

        "Hazardous Materials" means any substances regulated under any Environmental Law, whether as pollutants, contaminants, or chemicals, or as
industrial, toxic or hazardous substances or wastes, or otherwise. 

        "Highest Lawful Rate" means, with respect to each Lender Party to whom Obligations are owed, the maximum nonusurious rate of interest that
such Lender Party is permitted under applicable Law to contract for, take, charge, or receive with respect to such Obligations. All determinations herein of the Highest Lawful Rate, or of any interest
rate determined by reference to the Highest Lawful Rate, shall be made separately for each Lender Party as appropriate to assure that the Loan Documents are not construed to obligate any Person to pay
interest to any Lender Party at a rate in excess of the Highest Lawful Rate applicable to such Lender Party. 

        "Indebtedness" of any Person means each of the following: 

        (a)   its
obligations for the repayment of borrowed money, 

        (b)   its
obligations to pay the deferred purchase price of property or services (excluding trade account payables arising in the ordinary course of business), other than
contingent purchase price or similar obligations incurred in connection with an acquisition and not yet earned or determinable, 

        (c)   its
obligations evidenced by a bond, debenture, note or similar instrument, 

        (d)   its
obligations, as lessee, constituting principal under Capital Leases, 

        (e)   its
direct or contingent reimbursement obligations with respect to the face amount of letters of credit pursuant to the applications or reimbursement agreements
therefor, 

        (f)    its
obligations for the repayment of outstanding banker's acceptances, whether matured or unmatured, 

        (g)   its
obligations under any synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing if the
obligation under such synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing is considered indebtedness for borrowed
money for tax purposes but is classified as an operating lease in accordance with GAAP (excluding, to the extent included herein, operating leases entered into in the ordinary course of business), or 

        (h)   its
obligations under guaranties of any obligations of any other Person described in the foregoing clauses (a) through (g). 

7

 

        "Initial Financial Statements" means the audited Consolidated financial statements of Borrower as of December 31, 2003. 

        "Interest Expense" means, with respect to any period, the sum (without duplication) of the following (in each case, eliminating all
offsetting debits and credits between Borrower and its Subsidiaries (excluding Unrestricted Subsidiaries) and all other items required to be eliminated in the course of the preparation of Consolidated
financial statements of Borrower and its Subsidiaries (excluding Unrestricted Subsidiaries) in accordance with GAAP): (a) all interest and commitment fees in respect of Indebtedness of Borrower
or any of its Subsidiaries (excluding Unrestricted Subsidiaries) (including imputed interest on Capital Lease Obligations) which are accrued during such period and whether expensed in such period or
capitalized; plus (b) all fees in respect of letters of credit issued for the account of Borrower or any of its Subsidiaries, which are accrued during such period and whether expensed in such
period or capitalized. 

        "Interest Payment Date" means (a) with respect to each Base Rate Loan, the last day of each March, June, September and December
beginning June 30, 2004, and (b) with respect to each LIBOR Loan, the last day of the Interest Period that is applicable thereto and, if such Interest Period is six or nine months in
length, the dates specified by Administrative Agent which are approximately three and six months (as appropriate) after such Interest Period begins; provided that the last Business Day of each
calendar month shall also be an Interest Payment Date for each such Loan so long as any Event of Default exists under Section 8.1(a) or (b). 

        "Interest Period" means, with respect to each particular LIBOR Loan in a Borrowing, the period specified in the Borrowing Notice or
Continuation/Conversion Notice applicable thereto, beginning on and including the date specified in such Borrowing Notice or Continuation/Conversion Notice (which must be a Business Day), and ending
one, two, three, six or nine months (if nine months is available for each Lender) thereafter (and, as to Loans, ending on a date less than 30 days thereafter as may be specified by Borrower, if
such lesser period is available for each Lender), as Borrower may elect in such notice; provided that: (a) any Interest Period which would otherwise end on a day which is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day;
(b) any Interest Period which begins on the last Business Day in a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such
Interest Period) shall end on the last Business Day in a calendar month; and (c) notwithstanding the foregoing, no Interest Period may be selected for a Loan to Borrower that would end after
the Maturity Date. 

        "Investment" means any investment made, directly or indirectly in any Person, whether by acquisition of shares of capital stock,
indebtedness or other obligations or securities or by loan, advance, capital contribution or otherwise, and whether made in cash, by the transfer of property or by any other means. 

        "Law" means any statute, law, regulation, ordinance, rule, treaty, judgment, order, decree, permit, concession, franchise, license,
agreement or other governmental restriction of the United States or Canada or any state, province, or political subdivision thereof or of any foreign country or any department, state, province or
other political subdivision thereof. 

        "Lender Parties" means Administrative Agent and all Lenders. 

        "Lenders" means each signatory hereto designated as a Lender, and the successors and permitted assigns of each such party as holder of a
Note. 

        "Lender Schedule" means Schedule 1 hereto. 

8

 

        "Liabilities" means, as to any Person, all indebtedness, liabilities and obligations of such Person, whether matured or unmatured,
liquidated or unliquidated, primary or secondary, direct or indirect, absolute, fixed or contingent, and whether or not required to be considered pursuant to GAAP. 

        "LIBOR Loan" means a Loan that bears interest at a rate based upon the LIBOR Rate. 

        "LIBOR Rate" means, as applicable to any LIBOR Loan within a Borrowing and with respect to the related Interest Period therefor, the rate
per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) as determined on the basis of offered rates for deposits in Dollars, for a period of time comparable to such Interest Period which
appears on Telerate Page 3750 (or any successor page) as of 11:00 a.m. London time on the day that is two Business Days preceding the first day of such LIBOR Loan; provided, however, if the
rate described above does not appear on the Telerate system on any applicable interest determination date, the LIBOR Rate shall be the rate (rounded upwards as described above, if necessary) for
deposits in dollars for a period substantially equal to such Interest Period on the Reuters Page "LIBOR" (or such other page as may replace the LIBOR Page on that service for the purpose of displaying
such rates), as of 11:00 a.m. (London time), on the date that is two Business Days prior to the beginning of such Interest Period; provided, however, if more than one rate is specified on
Reuters Screen LIBOR Page, the applicable rate shall be the arithmetic mean of all such rates (rounded upwards, if necessary, to the nearest 1/1000 of 1%). If both the Telerate and Reuters system are
unavailable, then the LIBOR Rate for that date will be determined on the basis of the offered rates for deposits in Dollars for a period of time comparable to such Interest Period which are offered by
four major banks in the London interbank market at approximately 11:00 a.m. London time, on the day that is two (2) Business Days preceding the first day of such LIBOR Loan as selected
by Administrative Agent. The principal London office of each of the four major London banks will be requested to provide a quotation of its Dollar deposit offered rate. If at least two such quotations
are provided, the rate for that date will be the arithmetic mean of the quotations. If fewer than two quotations are provided as requested, the rate for that date will be determined on the basis of
the rates quoted for loans in Dollars to leading European banks for a period of time comparable to such Interest Period offered by major banks in New York City at approximately 11:00 a.m. New
York City time, on the day that is two Business Days preceding the first day of such LIBOR Loan. In the event that Administrative Agent is unable to obtain any such quotation as provided above, it
will be deemed that the LIBOR Rate pursuant to such LIBOR Loan cannot be determined. In the event that the
Board of Governors of the Federal Reserve System shall impose a Reserve Percentage with respect to LIBOR deposits of any Lender, then for any period during which such Reserve Percentage shall apply,
the LIBOR Rate shall be equal to the amount determined above divided by an amount equal to 1 minus the Reserve Percentage. "Reserve Percentage" means the maximum aggregate reserve requirement
(including all basic, supplemental, marginal, special, emergency and other reserves) which is imposed on member banks of the Federal Reserve System against "Euro-currency Liabilities" as
defined in Regulation D. Without limiting the effect of the foregoing, the Reserve Percentage shall reflect any other reserves required to be maintained by such member banks with respect to
(a) any category of liabilities which includes deposits by reference to which the LIBOR Rate is to be determined, or (b) any category of extensions of credit or other assets which
include LIBOR Loans. The LIBOR Rate for any LIBOR Loan shall change whenever the Reserve Percentage changes. 

        "Lien" means, with respect to any property or assets, any right or interest therein of a creditor to secure Liabilities owed to it or any
other arrangement with such creditor which provides for the payment of such Liabilities out of such property or assets or which allows such creditor to have such Liabilities satisfied out of such
property or assets prior to the general creditors of any owner thereof, including any lien, mortgage, security interest, pledge, deposit, production payment, rights of a vendor under any title
retention or conditional sale agreement or lease substantially equivalent thereto, tax lien, mechanic's or materialman's lien, or any other charge or encumbrance for security purposes, whether arising
by Law or agreement or otherwise, but excluding any right of offset which arises 

9

 

without
agreement in the ordinary course of business. "Lien" also means any filed financing statement, any registration of a pledge (such as with an issuer of uncertificated securities), or any other
arrangement or action which would serve to perfect a Lien described in the preceding sentence, regardless of whether such financing statement is filed, such registration is made, or such arrangement
or action is undertaken before or after such Lien exists. 

        "Link Acquisition" means the acquisition by any of Borrower and certain of its Subsidiaries of all or substantially all of the assets of
the subsidiaries of Link Energy LLC, pursuant to the Link Acquisition Documents. 

        "Link Acquisition Documents" means that certain Purchase and Sale Agreement dated March 31, 2004 by and among Link Energy LLC and
certain of its subsidiaries, and Borrower and certain of its subsidiaries, the Plan of Merger of even date herewith among Plains Pipeline, Plains Marketing, and certain subsidiaries of Link Energy
LLC, and all other agreements or instruments executed and delivered by Borrower or any of its Affiliates in connection therewith to consummate the Link Acquisition. 

        "Loan Documents" means this Agreement, the Notes, and all other agreements, certificates, documents, instruments and writings at any time
delivered in connection herewith or therewith (exclusive of term sheets and commitment letters). 

        "Loans" means loans by Lenders to Borrower pursuant to Section 2.1. 

        "Majority Lenders" means Lenders whose Percentage Shares exceed fifty percent (50%). 

        "Material Adverse Change" means a material and adverse change, from the state of affairs presented in the Initial Financial Statements or
as represented or warranted in any Loan Document, to (a) Borrower's Consolidated financial condition, (b) Borrower's Consolidated operations, properties or prospects, considered as a
whole, (c) Borrower's ability to timely pay its Obligations, or (d) the enforceability of the material terms of any Loan Document. 

        "Maturity Date" means March 31, 2006. 

        "Moody's" means Moody's Investor Service, Inc., or its successor. 

        "Notes" has the meaning given such term in Section 2.1 hereof. 

        "Obligations" means all Liabilities from time to time owing by any Restricted Person to any Lender Party under or pursuant to any of the
Notes or under or pursuant to any guaranty of the obligations of Borrower or under the Loan Documents. "Obligation" means any part of the Obligations. 

        "PAA Debt Rating" means the rating then in effect by a Rating Agency with respect to the long term senior unsecured non-credit
enhanced debt of Borrower. 

        "Percentage Share" means the percentage shown as each Lender's "Percentage Share" on the Lender Schedule, 

        "Permitted Lien" has the meaning given to such term in Section 7.2. 

        "Person" means an individual, corporation, partnership, limited liability company, association, joint stock company, trust or trustee
thereof, estate or executor thereof, unincorporated organization or joint venture, Tribunal, or any other legally recognizable entity. 

        "Petroleum Products" means crude oil, condensate, natural gas, natural gas liquids (NGL's), liquefied petroleum gases
(LPG's), refined petroleum products or any blend thereof. 

        "Plains Marketing" means Plains Marketing, L.P., a Texas limited partnership. 

10

 

        "Plains Pipeline" means Plains Pipeline, L.P. (f/k/a All American Pipeline, L.P.), a Texas limited partnership. 

        "Pricing Grid" means Schedule 3 attached hereto. 

        "Rating Agency" means either S&P or Moody's.  

        "Regulation D" means Regulation D of the Board of Governors of the Federal Reserve System as from time to
time in effect. 

        "Restricted Person" means any of Borrower and each Subsidiary of Borrower, including but not limited to Plains Marketing, Plains Pipeline,
PMC (Nova Scotia) Company, Plains Marketing Canada, L.P., and each Subsidiary of Plains Marketing, Plains Pipeline, PMC (Nova Scotia) Company and Plains Marketing Canada, L.P., but excluding, for the
avoidance of doubt, Unrestricted Subsidiaries. 

        "Restriction Exception" means (i) any applicable Law or any instrument governing Indebtedness or equity interests, or any
applicable Law or any other agreement relating to any property, assets or operations of a Person whose capital stock or other equity interests are acquired, in whole or part, by a Restricted Person
pursuant to an acquisition (whether by merger, consolidation, amalgamation or otherwise), as such instrument or agreement is in effect at the time of such acquisition (except with respect to
Indebtedness incurred in connection with, or in contemplation of, such acquisition), or such applicable Law is then or thereafter in effect (as applicable), which is not applicable to the acquiring
Restricted Person, or the property, assets or operations of the acquiring Restricted Person, other than the acquired Person, or the property, assets or operations of such acquired Person or such
acquired Person's Subsidiaries; provided that in the case of Indebtedness, the incurrence of such Indebtedness is not prohibited hereunder, or
(ii) provisions with respect to the disposition or distribution of assets in joint venture agreements or other similar agreements entered into in the ordinary course of business. 

        "S&P" means Standard & Poor's Ratings Group (a division of McGraw Hill, Inc.) or its successor. 

        "Significant Restricted Persons" means Borrower, PMC (Nova Scotia) Company, Plains Marketing Canada, L.P., Plains Marketing, Plains
Pipeline and Subsidiaries of Borrower that would be a "significant subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant
to the Securities Exchange Act of 1934 and the Securities Act of 1933, each as amended. 

        "Specified Acquisition" means one or more acquisitions of assets or entities or operating lines or divisions in any rolling
12-month period for an aggregate purchase price of not less than $50,000,000. 

        "Specified Equity Offering" means one or more issuances of equity by Borrower for aggregate net cash proceeds of not less than fifty
percent (50%) of the aggregate purchase price of the Specified Acquisition. 

        "Subsidiary" means, with respect to any Person, any corporation, association, partnership, limited liability company, joint venture, or
other business or corporate entity, enterprise or organization which is directly or indirectly (through one or more intermediaries) controlled or owned more than fifty percent by such Person;  provided,
however, that no Unrestricted Subsidiary shall be deemed a "Subsidiary" of any Restricted
Person for purposes of any Loan Document except as provided in Section 7.10. 

        "Termination Event" means (a) the occurrence with respect to any ERISA Plan of (i) a reportable event described in Sections
4043(c)(5) or (6) of ERISA or (ii) any other reportable event described in Section 4043(c) of ERISA other than a reportable event not subject to the provision for
30-day notice to the Pension Benefit Guaranty Corporation pursuant to a waiver by such corporation under Section 4043(a) of ERISA, or (b) the withdrawal of any ERISA
Affiliate from an ERISA Plan during a plan year in which it was a "substantial employer" as defined in Section 4001(a)(2) of ERISA, or (c) the filing of a notice of intent to terminate
any ERISA Plan or the treatment of any ERISA Plan 

11

 

amendment
as a termination under Section 4041 of ERISA, or (d) the institution of proceedings to terminate any ERISA Plan by the Pension Benefit Guaranty Corporation under
Section 4042 of ERISA, or (e) any other event or condition which might constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to
administer, any ERISA Plan. 

        "364-Day Credit Agreement" means that certain 364-Day Credit Agreement dated November 21, 2003 among
Borrower, Fleet National Bank, as administrative agent, and the lenders named therein. 

        "Tribunal" means any government, any arbitration panel, any court or any governmental department, commission, board, bureau, agency or
instrumentality of the United States of America, the Dominion of Canada, or any state, province, commonwealth, nation, territory, possession, county, parish, town, township, village or municipality,
whether now or hereafter constituted or existing. 

        "Type" means, with respect to any Loans, the characterization of such Loans as Base Rate Loans or LIBOR Loans. 

        "Unrestricted Subsidiary" shall have the meaning given it in Section 7.10. 

        "US/Canada Credit Agreement" means that certain Credit Agreement [US/Canada] dated November 21, 2003 among
Borrower, PMC (Nova Scotia) Company, Plains Marketing Canada, L.P., Fleet National Bank, as administrative agent, The Bank of Nova Scotia, as Canadian administrative agent, and the lenders named
therein. 

        "Wholly Owned Subsidiary" means any Subsidiary of a Person, all of the issued and outstanding stock, limited liability company membership
interests, or partnership interests of which (including all rights or options to acquire such stock or interests) are directly or indirectly (through one or more Subsidiaries) owned by such Person. 

        Section 1.2.    Exhibits and Schedules; Additional Definitions.    All Exhibits and Schedules attached to this
Agreement are a part hereof for all purposes. 

        Section 1.3.    Amendment of Defined Instruments.    Unless the context otherwise requires or unless otherwise
provided herein the terms defined in this Agreement which refer to a particular agreement, instrument or document also refer to and include all renewals, extensions, modifications, amendments and
restatements of such agreement, instrument or document, provided that nothing contained in this section shall be construed to authorize any such renewal, extension, modification, amendment or
restatement. 

        Section 1.4.    References and Titles.    All references in this Agreement to Exhibits, Schedules, articles,
sections, subsections and other subdivisions refer to the Exhibits, Schedules, articles, sections, subsections and other subdivisions of this Agreement unless expressly provided otherwise. Titles
appearing at the beginning of any subdivisions are for convenience only and do not constitute any part
of such subdivisions and shall be disregarded in construing the language contained in such subdivisions. The words "this Agreement," "this instrument," "herein," "hereof," "hereby," "hereunder" and
words of similar import refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited. The phrases "this section" and "this subsection" and similar phrases refer
only to the sections or subsections hereof in which such phrases occur. The word "or" is not exclusive, and the word "including" (in its various forms) means "including without limitation." Pronouns
in masculine, feminine and neuter genders shall be construed to include any other gender, and words in the singular form shall be construed to include the plural and vice versa, unless the context
otherwise requires. References to an "officer" or "officers" of the General Partner or any Restricted Person shall mean and include officers of such Person or the controlling management entity of such
Person as provided in such Person's organizational documents, as applicable. 

        Section 1.5.    Calculations and Determinations.    All calculations under the Loan Documents of interest
chargeable with respect to LIBOR Loans and of fees shall be made on the basis of actual days 

12

 

elapsed
(including the first day but excluding the last) and a year of 360 days. All other calculations of interest made under the Loan Documents shall be made on the basis of actual days
elapsed (including the first day but excluding the last) and a year of 365 or 366 days, as appropriate. Each determination by a Lender Party of amounts to be paid under Article III or
any other matters which are to be determined hereunder by a Lender Party (such as any LIBOR Rate, Business Day, Interest Period, or Reserve Percentage) shall, in the absence of manifest error, be
conclusive and binding. Unless otherwise expressly provided herein or unless Majority Lenders otherwise consent all financial statements and reports furnished to any Lender Party hereunder shall be
prepared and all financial computations and determinations pursuant hereto shall be made in accordance with GAAP. 

ARTICLE II—The Loans

        Section 2.1.    Commitments to Lend; Notes.    Subject to the terms and conditions hereof, each Lender agrees
to make Loans to Borrower upon Borrower's request from time to time during the Commitment Period, provided that (a) subject to Sections 3.3, 3.4 and 3.6, all Lenders are requested to make Loans
of the same Type in accordance with their respective Percentage Shares and as part of the same Borrowing, (b) after giving effect to such Loans, the aggregate outstanding principal amount of
the Loans does not exceed the Commitment determined as of the date on which the requested Loans are to be made, and (c) after giving effect to such Loans, the Loans by each Lender does not
exceed such Lender's Commitment. The aggregate amount of all Loans in any Borrowing must be equal to $2,000,000 or any higher integral multiple of $250,000. The obligation of Borrower to repay to each
Lender the aggregate amount of all Loans made by such Lender to Borrower, together with interest accruing in connection therewith, shall be evidenced by a single promissory note (herein called such
Lender's "Note") made by Borrower payable to the order of such Lender in the form of Exhibit A with appropriate insertions. The amount of
principal owing on any Lender's Note at any given time shall be the aggregate amount of all Loans theretofore made by such Lender to Borrower minus all payments of principal theretofore received by
such Lender on such Note. Interest on each Note shall accrue and
be due and payable as provided herein and therein. Each Note shall be due and payable as provided herein and therein, and shall be due and payable in full on the Maturity Date. Subject to the terms
and conditions of this Agreement, Borrower may borrow, repay, and reborrow under this Section 2.1. Borrower may have no more than seven Borrowings of LIBOR Loans outstanding at any time. All
payments of principal and interest on the Loans shall be made in Dollars. 

        Section 2.2.    Requests for Loans.    Borrower must give to Administrative Agent written notice (or telephonic
notice promptly confirmed in writing) of any requested Borrowing. Each such notice constitutes a "Borrowing Notice" hereunder and must: 

        (a)   specify
(A) the aggregate amount of any such Borrowing and the date on which Base Rate Loans are to be advanced, or (B) the aggregate amount of any such
Borrowing of new LIBOR Loans, the date on which such LIBOR Loans are to be advanced (which shall be the first day of the Interest Period which is to apply thereto), and the length of the applicable
Interest Period; and 

        (b)   be
received by Administrative Agent not later than 11:00 a.m., New York City time, on (i) the day on which any such Base Rate Loans are to be made, or
(ii) the third Business Day preceding the day on which any such LIBOR Loans are to be made. 

Each
such written request or confirmation must be made in the form and substance of the "Borrowing Notice" attached hereto as Exhibit B, duly completed. Each such telephonic request shall be
deemed a representation, warranty, acknowledgment and agreement by Borrower as to the matters which are required to be set out in such written confirmation. Upon receipt of any such Borrowing Notice,
Administrative Agent shall give each Lender prompt notice of the terms thereof. If all conditions precedent to such new Loans have been met, each Lender will on the date requested promptly remit to 

13

 

Administrative
Agent at its office in Chicago, Illinois the amount of such Lender's new Loan in immediately available funds, and upon receipt of such funds, unless to its actual knowledge any
conditions precedent to such Loans have been neither met nor waived as provided herein, Administrative Agent shall promptly make such Loans available to Borrower. Unless Administrative Agent shall
have received prompt notice from a Lender that such Lender will not make available to Borrower such Lender's new Loan, Administrative Agent may in its discretion assume that such Lender has made such
Loan available to Administrative Agent in accordance with this section, and Administrative Agent may if it chooses, in reliance upon such assumption, make such Loan available to Borrower. If and to
the extent such Lender shall not so make its new Loan available to Administrative Agent, such Lender and Borrower severally agree to pay or repay to Administrative Agent within three days after demand
the amount of such Loan together with interest thereon, for each day from the date such amount was made available to Borrower until the date such amount is paid or repaid to Administrative Agent, with
interest at (i) the Federal Funds Rate, if such Lender is making such payment, and (ii) the interest rate applicable at the time to the other new Loans made on such date, if Borrower is
making such repayment. If neither such Lender nor Borrower pays or repays to Administrative Agent such amount within such three-day period, Administrative Agent shall be entitled to
recover from Borrower, on demand in lieu of the interest provided for in the preceding sentence, interest thereon at the Default Rate, calculated from the date such amount was made available to
Borrower. The failure of any Lender to make any new Loan to be made by it hereunder shall not relieve any other Lender of its obligation hereunder, if any, to make its new Loan, but no Lender shall be
responsible for the failure of any other Lender to make any new Loan to be made by such other Lender. All Borrowings of Loans shall be advanced in Dollars. 

        Section 2.3.    Continuations and Conversions of Existing Loans.    Borrower may make the following elections
with respect to Loans already outstanding: (i) to Convert, in whole or in part, Base Rate Loans to LIBOR Loans, (ii) to Convert, in whole or in part, LIBOR Loans to Base Rate Loans on
the last day of the Interest Period applicable thereto, and (iii) to Continue, in whole or in part, LIBOR Loans beyond the expiration of such Interest Period by designating a new Interest
Period to take effect at the time of such expiration. In making such elections, Borrower may combine existing Loans to Borrower made pursuant to separate Borrowings into one new Borrowing or divide
existing Loans to Borrower made pursuant to one Borrowing into separate new Borrowings, provided that Borrower may have no more than seven Borrowings of LIBOR Loans outstanding at any time. To make
any such election, Borrower must give to Administrative Agent written notice (or telephonic notice promptly confirmed in writing) of any such Conversion or Continuation of existing Loans, with a
separate notice given for each new Borrowing. Each such notice constitutes a "Continuation/Conversion Notice" hereunder and must: 

          (i)  specify
the existing Loans which are to be Continued or Converted; 

         (ii)  specify
(A) the aggregate amount of any Borrowing of Base Rate Loans into which such existing Loans are to be Continued or Converted and the date on which such
Continuation or Conversion is to occur, or (B) the aggregate amount of any Borrowing of LIBOR Loans into which such existing Loans are to be Continued or Converted, the date on which such
Continuation or Conversion is to occur (which shall be the first day of the Interest Period which is to apply to such LIBOR Loans), and the length of the applicable Interest Period; and 

        (iii)  be
received by Administrative Agent not later than 11:00 a.m. New York City time, on (i) the day on which any such Continuation or Conversion to Base
Rate Loans is to occur, or (ii) the third Business Day preceding the day on which any such Continuation or Conversion to LIBOR Loans is to occur. 

Each
such written request or confirmation must be made in the form and substance of the "Continuation/Conversion Notice" attached hereto as Exhibit C, duly completed. Each such telephonic 

14

 

request
shall be deemed a representation, warranty, acknowledgment and agreement by Borrower as to the matters which are required to be set out in such written confirmation. Upon receipt of any such
Continuation/Conversion Notice, Administrative Agent shall give each Lender prompt notice of the terms thereof. Each Continuation/Conversion Notice shall be irrevocable and binding on Borrower. During
the continuance of any Default, Borrower may not make any election to Convert existing Loans into LIBOR Loans or Continue existing Loans as LIBOR Loans beyond the expiration of their respective and
corresponding Interest Period then in effect. If (due to the existence of a Default or for any other reason) Borrower fails to timely and properly give any Continuation/Conversion Notice with respect
to a Borrowing of existing LIBOR Loans at least three days prior to the end of the Interest Period applicable to such LIBOR Loans, any such LIBOR Loans, to the extent not prepaid at the end of such
Interest Period, shall automatically be Converted into Base Rate Loans at the end of such Interest Period. No new funds shall be repaid by Borrower or advanced by any Lender in connection with any
Continuation or Conversion of existing Loans pursuant to this section, and no such Continuation or Conversion shall be deemed to be a new advance of funds for any purpose; such Continuations and
Conversions merely constitute a change in the interest rate applicable to such already outstanding Loans. 

        Section 2.4.    Use of Proceeds.    Borrower shall use all Loans to finance capital expenditures of any
Restricted Person, provide working capital for operations and for other general business purposes, including acquisitions. In no event shall the funds from any Loans be used directly or indirectly by
any Person for personal, family, household or agricultural purposes or for the purpose, whether immediate, incidental or ultimate, of purchasing, acquiring or carrying any "margin stock" (as such term
is defined in Regulation U promulgated by the Board of Governors of the Federal Reserve System) or to extend credit to others directly or indirectly for the purpose of purchasing or carrying
any such margin stock. Borrower represents and warrants that it is not engaged principally, or as one of its important activities, in the business of extending credit to others for the purpose of
purchasing or carrying such margin stock. 

        Section 2.5.    Interest Rates and Fees.    

        (a)   Interest Rates.

          (i)  Each
Loan shall bear interest as follows: (A) unless the Default Rate shall apply, each Base Rate Loan shall bear interest on each day outstanding at the Base
Rate plus the Applicable Margin in effect on such day, and each LIBOR Loan shall bear interest on each day during the related Interest Period at the related LIBOR Rate plus the Applicable Margin in
effect on such day, and (B) during a Default Rate Period, all Loans shall bear interest on each day outstanding at the applicable Default Rate. 

         (ii)  If
an Event of Default based upon Section 8.1(a), Section 8.1(b) or Section 8.1(h)(i), (h)(ii) or (h)(iii) exists and the Loans are
not bearing interest at the Default Rate, the past due principal and past due interest shall bear interest on each day outstanding at the applicable Default Rate. 

        (iii)  The
interest rate shall change whenever the applicable Base Rate, LIBOR Rate or Applicable Margin changes. In no event shall the interest rate on any Loan exceed the
Highest Lawful Rate. 

        (b)   Commitment Fee; Reduction of Commitment.    In consideration of each Lender's commitment to make Loans to
Borrower, Borrower will pay to Administrative Agent for the account of each Lender a commitment fee determined on a daily basis equal to the Commitment Fee Rate in effect on such day times such
Lender's Percentage Share of the unused portion of the Commitment on each day during the Commitment Period, determined for each such day by deducting from the amount of the Commitment at the end of
such day the aggregate outstanding principal amount of Loans. Such 

15

 

commitment
fee shall be due and payable in arrears on the last day of each Fiscal Quarter and at the end of the Commitment Period. Borrower shall have the right from time to time to permanently reduce
the Commitment, provided that (A) notice of such reduction is given not less than 2 Business Days prior to such reduction, (B) the resulting Commitment is not less than the aggregate
outstanding principal amount of the Loans, and (C) each partial reduction shall be in an amount at least equal to $500,000 and in multiples of $100,000 in excess thereof. 

        (c)   Continuation Fees.    In consideration of each Lender's commitment to make Loans to Borrower, Borrower will pay
to Administrative Agent for the account of each Lender a continuation fee in an amount equal to (i) 0.175% of each Lender's Commitment outstanding as of July 1, 2004, due and payable on
such date, (ii) 0.125% of each Lender's Commitment outstanding as of October 1, 2004, due and payable on such date, and (iii) 0.125% of each Lender's Commitment outstanding as of
January 1, 2005, due and payable on such date. 

        (d)   Administrative Agent's Fees.    In addition to all other amounts due to Administrative Agent under the Loan
Documents, Borrower will pay fees to Administrative Agent as described in the fee letter dated March 25, 2004 between Administrative Agent and Borrower. 

        Section 2.6.    Intentionally Omitted.    

        Section 2.7.    Conversion to Term Loan.    Effective at 11:59 p.m. Chicago, Illinois time on the day
immediately preceding the Conversion Date, and provided that no Event of Default shall have occurred and be continuing, (i) each Lender's obligation to make new Loans to Borrower shall be
canceled automatically, and (ii) each Lender's Loans shall become term loans maturing on the Maturity Date. 

        Section 2.8.    Optional Prepayments.    Borrower may, upon three Business Days' notice, as to LIBOR Loans, or
same Business Day's notice, as to Base Rate Loans, to Administrative Agent (and Administrative Agent will promptly give notice to the other Lenders) from time to time and without premium or penalty
prepay the Loans, in whole or in part, so long as the aggregate amounts of all partial prepayments of principal on the Loans equals $2,500,000 or any higher integral multiple of $250,000. Upon receipt
of any such notice, Administrative Agent shall give each Lender prompt notice of the terms thereof. Each prepayment of principal of a Loan under this section shall be accompanied by all interest then
accrued and unpaid on the principal so prepaid. Any principal or interest prepaid pursuant to this section shall be in addition to, and not in lieu of, all payments otherwise required to be paid under
the Loan Documents at the time of such prepayment. Following notice by Borrower pursuant to the foregoing, Borrower shall make such prepayment, and the prepayment amount specified in such notice shall
be due and payable, on the date specified in such notice. 

        Section 2.9.    Mandatory Commitment Reductions and Prepayments.    (a) Upon the consummation of any
public or private debt or equity offering or assets securitization by Borrower or any of its Subsidiaries, the Commitment shall be permanently reduced by an amount equal to the net proceeds of such
offering (excluding net proceeds of up to $100,000,000 from the equity offering referred to in Section 4.1(g)), and Borrower shall contemporaneously therewith make a mandatory prepayment
pursuant to subsection (c) below. 

        (b)   Upon
the consummation of a sale, lease or other disposition of property (other than in exchange for property of like kind or otherwise useful in Borrower's business) by
Borrower or any of its Subsidiaries that, together with all other previous sales, leases or other dispositions of property by Borrower or any of its Subsidiaries after the date hereof, result in net
cash proceeds in excess of $25,000,000, the Commitment shall be permanently reduced by an amount equal to such excess, and Borrower shall contemporaneously therewith make any mandatory prepayment as
may be required pursuant to subsection (c) below. 

        (c)   If
at any time the aggregate outstanding principal amount of the Loans exceeds the Commitment (whether due to a reduction in the Commitment in accordance with
Section 2.5(b), subsections (a) or (b) above, or otherwise), Borrower shall immediately upon demand prepay the principal of the Loans in an amount at least equal to such excess. 

        (d)   Each
prepayment of principal under this section shall be accompanied by all interest then accrued and unpaid on the principal so prepaid. Any principal or interest
prepaid pursuant to this section shall be in addition to, and not in lieu of, all payments otherwise required to be paid under the Loan Documents at the time of such prepayment. 

16

   ARTICLE III—Payments to Lenders  

        Section 3.1.    General Procedures.    Each Restricted Person shall pay all amounts owing by such Restricted
Person with respect to any Obligations (whether for principal, interest, fees, or otherwise) to Administrative Agent for the account of the Lender Party to whom such payment is owed in Dollars,
without set-off, deduction or counterclaim, and in immediately available funds. Each payment under the Loan Documents must be received by Administrative Agent not later than noon, New York
City time, on the date such payment becomes due and payable. Any payment received by Administrative Agent after such time will be deemed to have been made on the next following Business Day. Should
any such payment become due and payable on a day other than a Business Day, the maturity of such payment shall be extended to the next succeeding Business Day, and, in the case of a payment of
principal or past due interest, interest shall accrue and be payable thereon for the period of such extension as provided in the Loan Document under which such payment is due. Each payment under a
Loan Document to a Lender Party shall be due and payable at the place provided therein and, if no specific place of payment is provided, shall be due and payable at the place of payment of
Administrative Agent's Note. 

        (a)   When
Administrative Agent collects or receives money on account of the Obligations, Administrative Agent shall distribute all money so collected or received, and each
Lender Party shall apply all such money so distributed, as follows: 

          (i)  first,
for the payment of all Obligations which are then due (and if such money is insufficient to pay all such Obligations, first to any reimbursements due
Administrative Agent under Section 10.4 and then to the partial payment of all other Obligations then due in proportion to the amounts thereof, or as Lender Parties shall otherwise agree); 

         (ii)  then
for the prepayment of amounts owing under the Loan Documents (other than principal on the Notes) if so specified by Borrower; 

        (iii)  then
for the prepayment of principal on the Notes, together with accrued and unpaid interest on the principal so prepaid; and 

        (iv)  last,
for the payment or prepayment of any other Obligations. 

All
payments applied to principal or interest on any Note shall be applied first to any interest then due and payable, then to principal then due and payable, and last to any prepayment of principal
and accrued interest thereon in compliance with Sections 2.8 and 2.9, as applicable. All distributions of amounts described in any of subsections (ii), (iii), or (iv) above shall be made by
Administrative Agent pro rata to each Lender Party then owed Obligations described in such subsection in proportion to all amounts owed to all Lender Parties which are described in such subsection;
provided that if any Lender then owes payments to Administrative Agent under Section 9.4, any amounts otherwise distributable under this section to such Lender shall be deemed to belong to
Administrative Agent, to the extent of such unpaid payments, and Administrative Agent shall apply such amounts to make such unpaid payments rather than distribute such amounts to such Lender. 

        Section 3.2.    Capital Reimbursement.    If either (a) the introduction or implementation of or the
compliance with or any change in or in the interpretation of any Law, or (b) the introduction or implementation of or the compliance with any request, directive or guideline from any central
bank or other governmental authority (whether or not having the force of Law) affects or would affect the amount of capital required or expected to be maintained by any Lender Party or any corporation
controlling any Lender Party, then, within five Business Days after demand by such Lender Party, Borrower will pay to Administrative Agent for the benefit of such Lender Party, from time to time as
specified by such Lender Party, such additional amount or amounts which such Lender Party shall determine to be appropriate to compensate such Lender Party or any corporation controlling such Lender
Party in light of such circumstances, to the extent that such Lender Party reasonably determines 

17

 

that
the amount of any such capital would be increased or the rate of return on any such capital would be reduced by or in whole or in part based on the existence of the face amount of such Lender
Party's Loans or commitments under this Agreement. 

        Section 3.3.    Increased Cost of LIBOR Loans.    If any applicable Law (whether now in effect or hereinafter
enacted or promulgated, including Regulation D) or any interpretation or administration thereof by any governmental authority charged with the interpretation or administration thereof (whether
or not having the force of Law): 

        (a)   shall
change the basis of taxation of payments to any Lender Party of any principal, interest, or other amounts attributable to any LIBOR Loan or otherwise due under
this Agreement in respect of any LIBOR Loan (other than taxes imposed on, or measured by, the overall net income of such Lender Party or any Applicable Lending Office of such Lender Party by any
jurisdiction in which such Lender Party or any such Applicable Lending Office is located); or 

        (b)   shall
change, impose, modify, apply or deem applicable any reserve, special deposit or similar requirements in respect of any LIBOR Loan (excluding those for which such
Lender Party is fully compensated pursuant to adjustments made in the definition of LIBOR Rate) or against assets of, deposits with or for the account of, or credit extended by, such Lender Party; or 

        (c)   shall
impose on any Lender Party or the interbank Eurocurrency deposit market any other condition affecting any LIBOR Loan, the result of which is to increase the cost
to any Lender Party of funding or maintaining any LIBOR Loan or to reduce the amount of any sum receivable by any Lender Party in respect of any LIBOR Loan by an amount deemed by such Lender Party to
be material, then such Lender Party shall promptly notify Administrative Agent and Borrower in writing of the happening of such event and of the amount required to compensate such Lender Party for
such event (on an after-tax basis, taking into account any taxes on such compensation), whereupon (i) Borrower shall, within five Business Days after demand therefor by such Lender
Party, pay such amount to Administrative Agent for the account of such Lender Party and (ii) Borrower may elect, by giving to Administrative Agent and such Lender Party not less than three
Business Days' notice, to Convert all (but not less than all) of any such LIBOR Loans into Base Rate Loans. 

        Section 3.4.    Notice; Change of Applicable Lending Office.    A Lender Party shall notify Borrower of any
event occurring after the date of this Agreement that will entitle such Lender Party to compensation under Section 3.2, 3.3, or 3.5 hereof as promptly as practicable, but in any event within
180 days, after such Lender Party obtains actual knowledge thereof; provided, that (i) if such Lender Party fails to give such notice
within 180 days after it obtains actual knowledge of such an event, such Lender Party shall, with respect to compensation payable pursuant to Section 3.2, 3.3, or 3.5 in respect of any
costs resulting from such event, only be entitled to payment under Section 3.2, 3.3, or 3.5 hereof for costs incurred from and after the date 180 days prior to the date that such Lender
Party does give such notice and (ii) such Lender Party will designate a different Applicable Lending Office for the Loans affected by such event if such designation will avoid the need for, or
reduce the amount of, such compensation and will not, in the sole opinion of such Lender Party, be disadvantageous to such Lender Party, except that such Lender Party shall have no obligation to
designate an Applicable Lending Office located in the United States of America. Each Lender Party will furnish to Borrower a certificate setting forth the basis and amount of each request by such
Lender Party for compensation under Section 3.2, 3.3, or 3.5 hereof. 

        Section 3.5.    Availability.    If (a) any change in applicable Laws, or in the interpretation or
administration thereof of or in any jurisdiction whatsoever, domestic or foreign, shall make it unlawful or impracticable for any Lender Party to fund or maintain LIBOR Loans, or shall materially
restrict the authority of any Lender Party to purchase or take offshore deposits of dollars (i.e., "Eurodollars"), or (b) any Lender Party determines that matching deposits appropriate to fund
or maintain any LIBOR Loan are not available to it, or (c) any Lender Party determines that the formula for calculating the 

18

 

LIBOR
Rate does not fairly reflect the cost to such Lender Party of making or maintaining loans based on such rate, with respect to the Commitment hereunder, then, upon notice by such Lender Party to
Borrower and Administrative Agent, Borrower's right to elect LIBOR Loans from such Lender Party shall be suspended to the extent and for the duration of such illegality, impracticability or
restriction and all LIBOR Loans of such Lender Party which are then outstanding or are then the subject of any Borrowing Notice and which cannot lawfully or practicably be maintained or funded shall
immediately become or remain, or shall be funded as, Base Rate Loans of such Lender Party. With respect to the Commitment, Borrower agrees to indemnify each Lender Party extending credit pursuant
thereto, and hold each such Lender Party harmless against all costs, expenses, claims, penalties, liabilities and damages which may result from any such change in Law, interpretation or
administration. Such indemnification shall be on an after-tax basis, taking into account any taxes imposed on the amounts paid as indemnity. 

        Section 3.6.    Funding Losses.    In addition to its other obligations hereunder, with respect to the
Commitment, Borrower will indemnify each Lender Party extending credit pursuant thereto against, and reimburse each Lender Party on demand for, any loss or expense incurred or sustained by such Lender
Party (including any loss or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Lender Party to fund or maintain LIBOR Loans), as a result of
(a) any payment or prepayment (whether or not authorized or required hereunder) of all or a portion of a LIBOR Loan on a day other than the day on which the applicable Interest Period ends,
(b) any payment or prepayment, whether or not required hereunder, of a Loan made after the delivery, but before the effective date, of a Continuation/Conversion Notice, if such payment or
prepayment prevents such Continuation/Conversion Notice from becoming fully effective, (c) the failure of any Loan to be made or of any Continuation/Conversion Notice to become effective due to
any condition precedent not being satisfied or due to any other action or inaction of any Restricted Person, or (d) any Conversion (whether or not authorized or required hereunder) of all or
any portion of any LIBOR Loan into a Base Rate Loan or into a different LIBOR Loan on a day other than the day on which the applicable Interest Period ends. Such indemnification shall be on an
after-tax basis, taking into account any taxes imposed on the amounts paid as indemnity. 

        Section 3.7.    Reimbursable Taxes.    With respect to the Commitment, Borrower covenants and agrees with each
Lender Party extending credit pursuant thereto that: 

        (a)   Borrower
will indemnify each such Lender Party against and reimburse each such Lender Party for all present and future stamp and other taxes, duties, levies, imposts,
deductions, charges, costs, and withholdings whatsoever imposed, assessed, levied or collected on or in respect of this Agreement, any LIBOR Loans (whether or not legally or correctly imposed,
assessed, levied or collected), excluding, however, any taxes imposed on or measured by the overall net income of Administrative Agent or such Lender Party or any Applicable Lending Office of such
Lender Party by any jurisdiction in which such Lender Party or any such Applicable Lending Office is located (all such non-excluded taxes, levies, costs and charges being collectively
called "Reimbursable Taxes" in this section). Such indemnification shall be on an after-tax basis, taking into account any taxes imposed on the amounts paid as indemnity. 

        (b)   All
payments on account of the principal of, and interest on, each such Lender Party's Loans and Note, and all other amounts payable by Borrower to any such Lender Party
hereunder, shall be made in full without set-off or counterclaim and shall be made free and clear of and without deductions or withholdings of any nature by reason of any Reimbursable
Taxes, all of which will be for the account of Borrower. In the event of Borrower being compelled by Law to make any such deduction or withholding from any payment to any such Lender Party, Borrower
shall pay on the due date of such payment, by way of additional interest, such additional amounts as are needed to cause the amount receivable by such Lender Party after such deduction or withholding
to equal the amount which would have been receivable in the absence of such deduction or withholding. If Borrower should 

19

 

make
any deduction or withholding as aforesaid, Borrower shall within 60 days thereafter forward to such Lender Party an official receipt or other official document evidencing payment of such
deduction or withholding. 

        (c)   If
Borrower is ever required to pay any Reimbursable Tax with respect to any LIBOR Loan, Borrower may elect, by giving to Administrative Agent and such Lender Party not
less than three Business Days' notice, to Convert all (but not less than all) of any such LIBOR Loan into a Base Rate Loan, but such election shall not diminish Borrower's obligation to pay all
Reimbursable Taxes. 

        (d)   Notwithstanding
the foregoing provisions of this section, Borrower shall be entitled, to the extent it is required to do so by Law, to deduct or withhold (and not to
make any indemnification or reimbursement for) income or other similar taxes imposed by the United States of America (other than any portion thereof attributable to a change in federal income tax Laws
effected after the date hereof) from interest, fees or other amounts payable hereunder for the account of such Lender Party, other than such a Lender Party (i) who is a US person for Federal
income tax purposes or (ii) who has the Prescribed Forms on file with Administrative Agent (with copies provided to the relevant Borrower) for the applicable year to the extent deduction or
withholding of such taxes is not required as a result of the filing of such Prescribed Forms, provided that if Borrower shall so deduct or withhold any such taxes, it shall provide a statement to
Administrative Agent and such Lender Party, setting forth the amount of such taxes so deducted or withheld, the applicable rate and any other information or documentation which such Lender Party may
reasonably request for assisting such Lender Party to obtain any allowable credits or deductions for the taxes so deducted or withheld in the jurisdiction or jurisdictions in which such Lender Party
is subject to tax. As used in this section, "Prescribed Forms" means such duly executed forms or statements, and in such number of copies, which may, from time to time, be prescribed by Law and which,
pursuant to applicable provisions of (x) an income tax treaty between the United States and the country of residence of such Lender Party providing the forms or statements, (y) the Code,
or (z) any applicable rules or regulations thereunder, permit Borrower to make payments hereunder for the account of such Lender Party free of such deduction or withholding of income or similar
taxes. 

        Section 3.8.    Replacement of Lenders.    If any Lender Party seeks reimbursement for increased costs under
Sections 3.2 through 3.7, then within ninety days thereafter—provided no Event of Default then exists—Borrower shall have the right (unless such Lender Party withdraws its
request for additional compensation) to replace such Lender Party by requiring such Lender Party to assign its Loans and Note and its commitments hereunder to an Eligible Transferee reasonably
acceptable to Administrative Agent and to Borrower, provided that: (i) all Obligations of Borrower owing to such Lender Party being replaced (including such increased costs and any breakage
costs with respect to any outstanding LIBOR Loans, but excluding principal and accrued interest on the Note being assigned) shall be paid in full to such Lender Party concurrently with such
assignment, and (ii) the replacement Eligible Transferee shall purchase the Notes being assigned by paying to such Lender Party a price equal to the principal amount thereof plus accrued and
unpaid interest and accrued and unpaid commitment fees thereon. In connection with any such assignment Borrower, Administrative Agent, such Lender Party and the replacement Eligible Transferee shall
otherwise comply with Section 10.5. Notwithstanding the foregoing rights of Borrower under this section, however, Borrower may not replace any Lender Party which seeks reimbursement for
increased costs under Section 3.2 through 3.7 unless Borrower is at the same time replacing all Lender Parties which are then seeking such compensation. 

ARTICLE IV—Conditions Precedent to Lending  

        Section 4.1.    Documents to be Delivered.    No Lender has any obligation to make its first Loan unless
Administrative Agent shall have received all of the following, at Administrative Agent's office in 

20

 

Houston,
Texas, duly executed and delivered and in form, substance and date satisfactory to Administrative Agent, each of which was so executed and delivered: 

        (a)   This
Agreement and any other document that Lenders are to execute in connection herewith. 

        (b)   Each
Note and the guaranty of each Guarantor. 

        (c)   Certain
certificates including: 

          (i)  An
"Omnibus Certificate" of the secretary or assistant secretary and any vice president of GP LLC, which shall contain the names and signatures of the officers of GP
LLC authorized to execute this Agreement and the other Loan Documents and which shall certify to the truth, correctness and completeness of the following exhibits attached thereto: (1) a copy
of resolutions duly adopted by the Board of Directors of GP LLC and in full force and effect at the time this Agreement is entered into, authorizing the execution of the Loan Documents delivered or to
be delivered in connection herewith and the consummation of the transactions contemplated herein and therein, (2) a copy of the charter documents of Borrower and all amendments thereto,
certified by the appropriate official of its jurisdiction of organization, and (3) a copy of the agreement of limited partnership of Borrower; 

         (ii)  An
"Omnibus Certificate" of the secretary or assistant secretary and any vice president of Plains Marketing GP Inc., which shall contain the names and signatures
of the officers of such company authorized to execute Loan Documents and which shall certify to the truth, correctness and completeness of the following exhibits attached thereto: (1) a copy of
resolutions duly adopted by the Board of Directors of such company and in full force and effect at the time this Agreement is entered into, authorizing the execution of the Loan Documents delivered or
to be delivered in connection herewith and the consummation of the transactions contemplated herein and therein, (2) a copy of the charter documents of each Significant Restricted Person, other
than those Significant Restricted Persons whose charter documents are attached to the certificates described in Section 4.1(c)(i) above or Section 4.1(c)(iii) below and all
amendments thereto, certified by the appropriate official of its jurisdiction of organization, and (3) a copy of any bylaws or agreement of limited partnership of such Significant Restricted
Persons; 

        (iii)  An
"Omnibus Certificate" of the secretary or assistant secretary and any vice president of PMC (Nova Scotia) Company, which shall contain the names and signatures of
the officers of such company authorized to execute Loan Documents and which shall certify to the truth, correctness and
completeness of the following exhibits attached thereto: (1) a copy of resolutions duly adopted by the Board of Directors of such company and in full force and effect at the time this Agreement
is entered into, authorizing the execution of the Loan Documents delivered or to be delivered in connection herewith and the consummation of the transactions contemplated herein and therein,
(2) a copy of the charter documents of such company and Plains Marketing Canada, L.P. and all amendments thereto, certified by the appropriate official of its jurisdiction of organization, and
(3) a copy of the bylaws of such company and the agreement of limited partnership of Plains Marketing Canada, L.P.; and 

        (iv)  A
certificate of the chief financial officer of GP LLC, regarding satisfaction of Section 4.2. 

        (d)   A
certificate (or certificates) of the due formation, valid existence and good standing of each Significant Restricted Person in its respective jurisdiction of
organization, issued by the appropriate authorities of such jurisdiction. 

21

 

        (e)   Favorable
opinions of Tim Moore, Esq., General Counsel for Restricted Persons, substantially in the form set forth in Exhibit E-1, Fulbright &
Jaworski L.L.P., special Texas and New York counsel to Restricted Persons, substantially in the form set forth in Exhibit E-2, and Bennett Jones LLP, special Canadian Counsel for
Restricted Persons, substantially in the form set forth in Exhibit E-3. 

        (f)    Administrative
Agent shall have received copies of the Link Acquisition Documents and any other related documents as Administrative Agent may reasonably request. 

        (g)   Administrative
Agent shall have received a copy of a binding commitment for the public or private purchase of equity securities of Borrower for not less than
$75,000,000. 

        (h)   A
certificate of chief executive officer, president, chief financial officer, treasurer or any vice president of GP LLC which shall certify that (i) all
conditions precedent to Borrower's obligations under the purchase and sale agreement included within the Link Acquisition Documents have been satisfied or waived, and (ii) substantially
contemporaneously with the initial funding of the Loans, the plan of merger included within the Link Acquisition Documents shall be filed and pursuant thereto the Link Acquisition shall be
consummated. 

        (i)    Consolidated
financial statements of Borrower and its Subsidiaries as of December 31, 2003, reflecting compliance with Sections 7.8 and 7.9, together with a
certificate by the chief financial officer of GP LLC certifying such financial statements. 

        (j)    After
giving effect to the consummation of the Link Acquisition, no Material Adverse Change shall have occurred since December 31, 2003. 

        (k)   Administrative
Agent shall have received all documents and instruments which Administrative Agent has then requested (including opinions of legal counsel for Restricted
Persons and Administrative Agent; corporate documents and records; documents evidencing governmental authorizations, consents, approvals, licenses and exemptions; and certificates of public officials
and of officers and representatives of Borrower and other Persons), as to (i) the accuracy and validity of or compliance with all representations, warranties and covenants made by any
Restricted Person in this Agreement and the other Loan Documents, (ii) the satisfaction of all conditions contained herein or therein, and (iii) all other matters pertaining hereto and
thereto. All such additional documents and instruments shall be satisfactory to Administrative Agent in form and substance. 

        (l)    Payment
of all commitment, facility, agency and other fees required to be paid to Administrative Agent or Lender pursuant to any Loan Documents or any commitment
agreement heretofore entered into. 

        Section 4.2.    Additional Conditions Precedent.    No Lender has any obligation to make any Loan (including
its first), unless the following conditions precedent have been satisfied: 

        (a)   All
representations and warranties made by any Restricted Person in any Loan Document shall be true on and as of the date of such Loan as if such representations and
warranties had been made as of the date of such Loan except to the extent that such representation or warranty was made as of a specific date or updated, modified or supplemented as of a subsequent
date with the consent of Majority Lenders, then in each such case, such other date. 

        (b)   No
Default shall exist at the date of such Loan or result from such Loan. 

22

 

ARTICLE V—Representations and Warranties  

        To confirm each Lender's understanding concerning Restricted Persons and Restricted Persons' businesses, properties and obligations and to induce each Lender to
enter into this Agreement and to extend credit hereunder, Borrower represents and warrants to each Lender that: 

        Section 5.1.    No Default.    No event has occurred and is continuing which constitutes a Default, except as
has been waived in accordance with this Agreement. 

        Section 5.2.    Organization and Good Standing.    Each Significant Restricted Person is duly organized or
formed, validly existing and in good standing under the Laws of its jurisdiction of organization or formation, having all requisite corporate or similar powers required to carry on its business and
enter into and carry out the transactions contemplated hereby. Each Significant Restricted Person is duly qualified, in good standing, and authorized to do business in all other jurisdictions wherein
the character of the properties owned or held by it or the nature of the business transacted by it makes such qualification necessary except where the failure to so qualify would not reasonably be
expected to cause a Material Adverse Change. 

        Section 5.3.    Authorization.    Each Restricted Person has duly taken all action necessary to authorize the
execution and delivery by it of the Loan Documents to which it is a party and to authorize the consummation of the transactions contemplated thereby and the performance of its obligations thereunder.
Borrower is duly authorized to borrow funds hereunder. 

        Section 5.4.    No Conflicts or Consents.    The execution and delivery by each Restricted Person of the Loan
Documents to which it is a party, the performance by it of its obligations, and the consummation of the transactions contemplated thereby, do not and will not (i) violate any provision of
(1) Law applicable to it, (2) its organizational documents or (3) any judgment, order or material license or permit applicable to or binding upon it, (ii) result in the
acceleration of any Indebtedness owed by it or (iii) result in or require the creation of any consensual Lien upon any of its material assets or properties except as expressly contemplated in,
or permitted by, the Loan Documents. Except as expressly contemplated in or permitted by the Loan Documents, disclosed in the Disclosure Schedule or disclosed pursuant to Section 6.4, no
permit, consent, approval, authorization or order of, and no notice to or filing, registration or qualification with, any Tribunal is required on the part of any Restricted Person a party thereto
pursuant to the provisions of any material Law applicable to it as a condition to its execution, delivery or performance of any Loan Document or (ii) to consummate any transactions contemplated
by the Loan Documents. 

        Section 5.5.    Enforceable Obligations.    This Agreement is, and the other Loan Documents when duly executed
and delivered will be, legal, valid and binding obligations of each Restricted Person which is a party hereto or thereto, enforceable in accordance with their terms except as such enforcement may be
limited by bankruptcy, insolvency or similar Laws of general application relating to the enforcement of creditors' rights and general principles of equity. 

        Section 5.6.    Initial Financial Statements.    Borrower has heretofore delivered to each Lender true, correct
and complete copies of the Initial Financial Statements. The Initial Financial Statements fairly present Borrower's Consolidated financial position at the date thereof and the Consolidated results of
Borrower's operations for the periods thereof, and in the case of the annual Initial Financial Statements, Consolidated cash flows for the period thereof. Since the date of the annual Initial
Financial Statements, no Material Adverse Change has occurred. All Initial Financial Statements described in clause (i) of that defined term were prepared in accordance with GAAP. 

        Section 5.7.    Other Obligations and Restrictions.    As of the closing date hereof, no Restricted Person has
any outstanding payment obligations of any kind (including contingent obligations, tax assessments and unusual forward or long-term commitments) which are, in the aggregate, material to
Borrower or material with respect to Borrower's Consolidated financial condition and not reflected in 

23

 

the
Initial Financial Statements, disclosed in the Disclosure Schedule or otherwise permitted under Section 7.1. Except as reflected disclosed in the Disclosure Schedule, no Restricted Person
is subject to or restricted by any franchise, contract, deed, charter restriction, or other instrument or restriction which would reasonably be expected to cause a Material Adverse Change. 

        Section 5.8.    Full Disclosure.    No certificate, statement or other information delivered herewith or
heretofore by any Restricted Person to any Lender in connection with the negotiation of this Agreement or in connection with any transaction contemplated hereby contains any untrue statement of a
material fact or omits to state any material fact necessary to make the statements contained herein or therein, in light of the circumstances under which they were made, not misleading as of the date
made or deemed made (or if such information expressly relates or refers to an earlier date, as of such earlier date). All written information furnished after the date hereof by or on behalf of any
Restricted Person to Administrative Agent or any Lender Party in connection with this Agreement and the other Loan Documents and the transactions contemplated hereby and thereby will be true, complete
and accurate in every material respect in light of the circumstances in which made or based on reasonable estimates, in each case as of the date on which such information is stated or certified (or if
such information expressly relates or refers to an earlier date, as of such earlier date). There is no fact known to any Restricted Person that has not been disclosed to each Lender in writing which
would reasonably be expected to cause a Material Adverse Change. 

        Section 5.9.    Litigation.    Except as disclosed in the Initial Financial Statements or in the Disclosure
Schedule: (i) there are no actions, suits or legal, equitable, arbitrative or administrative proceedings pending, or to the knowledge of any Restricted Person overtly threatened, against any
Restricted Person before any Tribunal which would reasonably be expected to cause a Material Adverse Change, and (ii) there are no outstanding judgments, injunctions, writs, rulings or orders
by any such Tribunal against any Restricted Person or, to the knowledge of Borrower, any Restricted Person's stockholders, partners, directors or officers which would reasonably be expected to cause a
Material Adverse Change. 

        Section 5.10.    ERISA Plans and Liabilities.    All currently existing ERISA Plans are listed in the
Disclosure Schedule or pursuant to Section 6.4. Except as disclosed in the Initial Financial Statements, in the Disclosure Schedule or pursuant to Section 6.4, no Termination Event has
occurred with respect to any ERISA Plan and all ERISA Affiliates are in compliance with ERISA in all material respects, to the extent that the non-compliance therewith would not be
reasonably expected to cause a Material Adverse Change. No ERISA Affiliate is required to contribute to, or has any other absolute or contingent liability in respect of, any "multiemployer plan" as
defined in Section 4001 of ERISA. Except as set forth in the Disclosure Schedule: (i) no "accumulated funding deficiency" (as defined in Section 412(a) of the Code) exists with
respect to any ERISA Plan, whether or not waived by the Secretary of the Treasury or his delegate, and (ii) the current value of each ERISA Plan's benefits does not exceed the current value of
such ERISA Plan's assets available for the payment of such benefits by more than $5,000,000. 

        Section 5.11.    Compliance with Permits, Consents and Law.    Except as set forth in the Disclosure Schedule
or pursuant to Section 6.4, each Restricted Person has all permits, licenses and authorizations required in connection with the conduct of its businesses, except to the extent failure to have
any such permit, license or authorization would not reasonably be expected to cause a Material Adverse Change. Each Restricted Person is in compliance with the terms and conditions of all such
permits, licenses and authorizations, and is also in compliance with all other limitations, restrictions, conditions, standards, prohibitions, requirements, obligations, schedules and timetables
contained in any Law, including applicable Environmental Law, or in any regulation, code, plan, order, decree, judgment, injunction, notice or demand letter issued, entered, promulgated or approved
thereunder, except to the extent that non-compliance therewith would not reasonably be expected to cause a Material Adverse Change or 

24

 

such
term, restriction or otherwise is being contested in good faith or a bona fide dispute exists with respect thereto. 

        Section 5.12.    Environmental Laws.    Except as set forth in the Disclosure Schedule or disclosed pursuant to
Section 6.4, (i) Borrower and its Subsidiaries are conducting their businesses in material compliance with all applicable Laws, including Environmental Laws, and have and are in
compliance with all licenses and permits required under any such Laws, unless failure to so comply or have such licenses and permits would not reasonably be expected to cause a Material Adverse
Change; (ii) none of the operations or properties of Borrower or any of its Subsidiaries is the subject of federal, provincial or local investigation evaluating whether any material remedial
action is needed to respond to a release of any Hazardous Materials into the environment or to the improper storage or disposal (including storage or disposal at offsite locations) of any Hazardous
Materials, unless such remedial action would not reasonably be expected to cause a Material Adverse Change; and (iii) neither Borrower nor any of its Subsidiaries (and to the actual knowledge
of Borrower, no other Person) has filed any notice under any Law indicating that any Restricted Person is responsible for the improper release into the environment, or the improper storage or
disposal, of any material amount of any Hazardous Materials or that any Hazardous Materials have been improperly released, or are improperly stored or disposed of, upon any property of any such
Person, other than of an alleged improper release, storage or disposal that would not reasonably be expected to cause a Material Adverse Change. 

        Section 5.13.    Borrower's Subsidiaries.    Borrower has no Subsidiary and owns no stock in any other
corporation or association except as listed in the Disclosure Schedule or disclosed after the closing date hereof to Administrative Agent in writing. No Restricted Person is a member of any general or
limited partnership, limited liability company, joint venture or association of any type whatsoever except those listed in the Disclosure Schedule or disclosed after the closing date hereof to
Administrative Agent in writing. Borrower owns, directly or indirectly, the equity interest in each of its Subsidiaries which is indicated in the Disclosure Schedule. 

        Section 5.14.    Title to Properties.    Each Restricted Person has good and defensible title to all of its
material properties and assets, free and clear of all Liens (other than Permitted Liens) and of all impediments to the use of such properties and assets in such Restricted Person's business, other
than such impediments that would not reasonably be expected to cause a Material Adverse Change. 

        Section 5.15.    Government Regulation.    Neither Borrower nor any other Restricted Person owing Obligations
is subject to regulation under the Public Utility Holding Company Act of 1935, the Investment Company Act of 1940 (as any of the preceding acts have been amended) or any other Law which regulates the
incurring by such Person of Indebtedness, including Laws relating to common contract carriers or the sale of electricity, gas, steam, water or other public utility services. Neither Borrower nor any
other Restricted Person is subject to regulation under the Federal Power Act which would violate, result in a default of, or prohibit the effectiveness or the performance of any of the provisions of
the Loan Documents. 

        Section 5.16.    Insider.    No Restricted Person, nor any Person having "control" (as that term is defined in
12 U.S.C. § 375b(9) or in regulations promulgated pursuant thereto) of any Restricted Person, is a "director" or an "executive officer" or "principal shareholder" (as those terms are
defined in 12 U.S.C. § 375b(8) or (9) or in regulations promulgated pursuant thereto) of any Lender, of a bank holding company of which any Lender is a Subsidiary or of any
Subsidiary of a bank holding company of which any Lender is a Subsidiary. 

        Section 5.17.    Solvency.    Upon giving effect to the issuance of the Notes, the execution of the Loan
Documents by Borrower and each Guarantor and the consummation of the transactions contemplated hereby, (i) Borrower and each Guarantor will be solvent (as such term is used in applicable
bankruptcy, liquidation, receivership, insolvency or similar Laws), and the sum of Borrower's 

25

 

and
each Guarantor's absolute and contingent liabilities, including the Obligations or guarantees thereof, shall not exceed the fair market value of such Restricted Person's assets, and
(ii) Borrower's and each Guarantor's capital should be adequate for the businesses in which such Restricted Person is engaged and intends to be engaged. Neither Borrower nor any other
Restricted Person has incurred (whether under the Loan Documents or otherwise), nor does any Restricted Person intend to incur or reasonably foreseeably believes that it will incur, debts which will
be beyond its ability to pay as such debts mature. 

        Section 5.18.    Not a "Reportable Transaction".    Borrower does not intend to treat the Borrowings and
related transactions as being a "reportable transaction" (within the meaning of Treasury Regulation Section 1.6011-4). In the event Borrower determines to take any action
inconsistent with such intention, it will promptly notify the Administrative Agent thereof. If Borrower takes any action inconsistent with such intention, or if Borrower so notifies the Administrative
Agent, then Borrower acknowledges that, as a result of such action or notice, one or more of the Lenders may treat its Loans as part of a transaction that is subject to Treasury Regulation
Section 301.6112-1, and such Lender or Lenders will maintain the lists and other records required by such Treasury Regulation. 

ARTICLE VI—Affirmative Covenants  

        To conform with the terms and conditions under which each Lender is willing to have credit outstanding to Borrower, and to induce each Lender to enter into this
Agreement and extend credit hereunder, Borrower covenants and agrees that until the full and final payment of the Obligations and the termination of this Agreement, unless Majority Lenders, or all
Lenders as required under Section 10.1, have previously agreed otherwise: 

        Section 6.1.    Payment and Performance.    Each Restricted Person will pay all amounts due from it pursuant to
the provisions of the Loan Documents to which it is a party in accordance with the terms thereof and will observe, perform and comply with every covenant, term and condition imposed on it pursuant to
the provisions of such Loan Documents. 

        Section 6.2.    Books, Financial Statements and Reports.    Each Restricted Person will at all times maintain
full and accurate books of account and records. Borrower will maintain and will cause its Subsidiaries to maintain a standard system of accounting, will maintain its Fiscal Year, and will furnish the
following statements and reports to each Lender at Borrower's expense: 

        (a)   Promptly
upon the filing thereof, and in any event within ninety (90) days after the end of each Fiscal Year, a copy of Borrower's Form 10-K,
which report shall include Borrower's complete Consolidated financial statements together with all notes thereto, prepared in reasonable detail in accordance with GAAP, together with an opinion,
without material qualification, based on an audit using generally accepted auditing standards, by PricewaterhouseCoopers LLP, or other independent certified public accountants selected by General
Partner, stating that such Consolidated financial statements have been so prepared. These financial statements shall contain a Consolidated balance sheet as of the end of such Fiscal Year and
Consolidated statements of earnings for such Fiscal Year. Such Consolidated financial statements shall set forth in comparative form the corresponding figures for the preceding Fiscal Year. 

        (b)   Promptly
upon the filing thereof, and in any event within sixty (60) days after the end of each of the first three Fiscal Quarters of each Fiscal Year, a copy of
Borrower's Form 10-Q, which report shall include Borrower's unaudited Consolidated balance sheet as of the end of such Fiscal Quarter and Consolidated statements of Borrower's
earnings and cash flows for such Fiscal Quarter and for the period from the beginning of the then current Fiscal Year to the end of such Fiscal Quarter. In addition Borrower will, together with each
such set of financial statements and each set of financial statements furnished under subsection (a) of this section, furnish a certificate in the form of Exhibit D signed by the chief
financial officer, principal accounting officer or treasurer of General Partner stating 

26

 

that
such financial statements are accurate and complete in all material respects (subject to normal year-end adjustments), stating that he has reviewed the Loan Documents, containing
calculations showing compliance (or non-compliance) at the end of such Fiscal Quarter with the requirements of Sections 7.8 and 7.9 and stating that, to the best of his knowledge, no
Default exists at the end of such Fiscal Quarter or at the time of such certificate or specifying the nature and period of existence of any such Default. 

        (c)   Promptly
upon their becoming available, copies of all Form 8-K's filed by Borrower with any securities exchange, the Securities and Exchange
Commission or any similar governmental authority. 

        (d)   Promptly
upon their becoming available, copies of all financial statements, reports, notices and proxy statements sent by Borrower to its unit holders and all
registration statements filed by Borrower with any securities exchange, the Securities and Exchange Commission or any similar governmental authority. 

        (e)   Prompt
notice of any publicly announced change in PAA's Debt Rating by either Standard & Poor's or Moody's. 

Documents
required to be delivered pursuant to Section 6.2(a), (b), (c) or (d), (to the extent any such documents are included in materials otherwise filed with the Securities and
Exchange Commission) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on which the Borrower posts such documents, or provides a link thereto, on
the Borrower's website on the Internet at the website address listed in Section 10.3, and notifies Administrative Agent of such posting or link. 

        Section 6.3.    Other Information and Inspections.    In each case subject to the last sentence of this
Section 6.3, each Restricted Person will furnish to Administrative Agent any information which Administrative Agent or any Lender may from time to time reasonably request concerning any
covenant, provision or condition of the Loan Documents or any matter in connection with any Restricted Person's businesses and operations. In each case subject to the last sentence of this
Section 6.3, each Restricted Person will permit representatives appointed by Administrative Agent (including independent accountants, auditors, agents, attorneys, appraisers and any other
Persons), upon reasonable prior notice, to visit and inspect during normal business hours any of such Restricted Person's property, including its books of account, other books and records, and any
facilities or other business assets, and to make extra copies therefrom and photocopies and photographs thereof, and to write down and record any information such representatives obtain, and each
Restricted Person shall permit Administrative Agent or its representatives to investigate and verify the accuracy of the information furnished to Administrative Agent or any Lender in connection with
the Loan Documents and to discuss all such matters with its officers, employees and, upon reasonable prior notice to Borrower, its representatives. Each of the foregoing inspections and examinations
shall be made subject to compliance with applicable safety standards and the same conditions applicable to any Restricted Person in respect of property of that Restricted Person on the premises of
Persons other than a Restricted Person or an Affiliate of a Restricted Person, and all information, books and records furnished or requested to be made, all information to be investigated or verified
and all discussion conducted with any officer, employee or representative of any Restricted Person shall be subject to any applicable attorney-client privilege exceptions which the Restricted Person
determines is reasonably necessary and compliance with conditions to disclosures under non-disclosure agreements between any Restricted Person and Persons other than a Restricted Person or
an Affiliate of a Restricted Person and the express undertaking of each Person acting at the direction of or on behalf of any Lender Party to be bound by the confidentiality provisions of
Section 10.6 of this Agreement. 

27

 

        Section 6.4.    Notice of Material Events.    Borrower will notify each Lender Party, not later than five
(5) Business Days after any executive officer of Borrower has knowledge thereof, stating that such notice is being given pursuant to this Agreement, of: 

        (a)   the
occurrence of any Material Adverse Change, 

        (b)   the
occurrence of any Default, 

        (c)   the
acceleration of the maturity of any Indebtedness owed by any Restricted Person or of any default by any Restricted Person under any indenture, mortgage, agreement,
contract or other instrument to which any of them is a party or by which any of them or any of their properties is bound, if such acceleration or default would reasonably be expected to cause a
Material Adverse Change, 

        (d)   the
occurrence of any Termination Event, 

        (e)   any
claim under any Environmental Law adverse to a Restricted Person or of potential liability with respect to such claim, or any other adverse claim asserted against
any Restricted Person or with respect to any Restricted Person's properties taken as a whole, in each case, which claim would reasonably be expected to cause a Material Adverse Change, and 

        (f)    the
filing of any suit or proceeding, or the assertion in writing of a claim against any Restricted Person or with respect to any Restricted Person's properties, which
would reasonably be expected to cause a Material Adverse Change. 

Upon
the occurrence of any of the foregoing the applicable Restricted Person will take all necessary or appropriate steps to remedy promptly, if applicable, any such Material Adverse Change, Default,
acceleration, default or Termination Event, to protect against any such adverse claim, to defend any such claim, suit or proceeding, and to resolve all controversies on account of any of the
foregoing. 

        Section 6.5.    Maintenance of Existence, Qualifications and Assets.    Each Significant Restricted Person
(i) will maintain and preserve its existence and its rights (including permits, licenses and other authorizations required under Environmental Laws) and franchises in full force and effect,
(ii) will qualify to do business in all states or jurisdictions where required by applicable Law, and (iii) keep all of its material assets that are useful in and necessary to its
business in good working order and condition (ordinary wear and tear and obsoleteness excepted) except, in each case (a) where the failure so to maintain, preserve, qualify or keep would not be
reasonably expected to cause a Material Adverse Change, (b) as permitted in Section 7.3 or as a result of statutory conversions or (c) as a result of a release permitted pursuant
to Section 6.9. Borrower will notify Administrative Agent in writing of any changes in its or any other Significant Restricted Person's name or the location of its or any other Significant
Restricted Person's chief executive office or principal place of business. 

        Section 6.6.    Payment of Taxes, etc.    Each Significant Restricted Person will (a) timely file all
required tax returns (including any extensions), (b) timely pay all taxes, assessments, and other governmental charges or levies imposed upon it or upon its income, profits or property, and
(c) maintain appropriate accruals and reserves for all of the foregoing as required by GAAP, except to the extent that (y) it is in good faith contesting the validity thereof by
appropriate proceedings, if necessary, and has set aside on its books adequate reserves therefor which are required by GAAP or (z) such non-filing, non-payment or
non-maintenance would not reasonably be expected to cause a Material Adverse Change. 

        Section 6.7.    Insurance.    In accordance with industry standards, each Significant Restricted Person will
keep insured (by responsible and reputable insurance companies or associations) or self-insured, at the option of Borrower or such Significant Restricted Person, in such amounts and
against such risks as are usually insured by Persons engaged in the same or similar businesses and owning similar properties. The insurance coverages and amounts will be reasonably determined by
Borrower, based on coverages 

28

 

carried
by prudent owners of similar property, and with respect to each Restricted Person, may be maintained by the Borrower. 

        Section 6.8.    Compliance with Agreements and Law.    Each Significant Restricted Person will perform all
material obligations it is required to perform under the terms of each indenture, mortgage, deed of trust, security agreement, lease, franchise and other material agreement, contract or other
instrument (including all contractual obligations and agreements with respect to environmental remediation or other environmental matters) to which it is a party or by which it or any of its
properties is bound to the extent that non-performance therewith would not reasonably be expected to cause a Material Adverse Change. Each Restricted Person will conduct its business and
affairs in compliance, in all material respects, with all Laws (including Environmental Laws) applicable thereto to the extent non-compliance therewith would not reasonably be expected to
cause a Material Adverse Change or such requirement of Law is being contested in good faith or a bona fide dispute exists with respect thereto. 

        Section 6.9.    Guaranties of Subsidiaries.    Each Significant Restricted Person that has outstanding
Indebtedness (other than guarantees hereunder) shall execute and deliver to Administrative Agent an absolute and unconditional guaranty of the timely repayment of the Obligations (in each case for
which such Person is not a borrower, account party or similar primary and direct obligor), which guaranty shall be reasonably satisfactory to Administrative Agent in form and substance;  provided, with
respect to any such Person that is not a Wholly Owned Subsidiary of Borrower, for which consent or approval of third parties is required
for the delivery of such guaranty, such Person shall not be required to deliver such guaranty, but shall use its commercially reasonable best efforts, as determined by Administrative Agent, to deliver
such guaranty. Notwithstanding any provision contained herein, in no event shall any Unrestricted Subsidiary be required to execute and deliver any guaranty for, or in respect of, the Obligations, or
any part thereof. Borrower will cause each of its Subsidiaries required to deliver a guaranty pursuant to this Section 6.9 to deliver to Administrative Agent, simultaneously with its delivery
of such a guaranty, written evidence satisfactory to Administrative Agent that such Subsidiary has taken all corporate, limited liability company or partnership action necessary to duly approve and
authorize its execution, delivery and performance of such guaranty. Borrower may at any time request the release of one or more Guarantors from their guaranty of the Obligations, and each such
Guarantor shall be so released upon such request, provided, no Default then exists and either (a) such Guarantor has no outstanding Indebtedness
or guaranties of Indebtedness (other than guaranties hereunder) or (b) the request is in contemplation of the sale or disposition of such Subsidiary (including all or substantially all of its
assets). Administrative Agent is authorized to execute and deliver to Borrower evidence of any such release, as reasonably requested by, and at the expense of, Borrower. 

ARTICLE VII—Negative Covenants  

        To conform with the terms and conditions under which each Lender is willing to have credit outstanding to Borrower and to induce each Lender to enter into this
Agreement and make the Loans, Borrower covenants and agrees that until the full and final payment of the Obligations and the termination of this Agreement, unless Majority Lenders, or all Lenders as
required under Section 10.1, have previously agreed otherwise: 

        Section 7.1.    Subsidiary Indebtedness.    No Subsidiary of Borrower will incur any Indebtedness other than: 

        (a)   the
Obligations; 

        (b)   Guaranties
by Guarantors of Indebtedness of any Restricted Person (i) arising under the US/Canada Credit Agreement and the 364-Day Credit Agreement,
or (ii) if arising under any other agreement, the incurrence of which did not result in a Default or an Event of Default; 

29

 

        (c)   Indebtedness
of (i) PMC (Nova Scotia) Company and Plains Marketing Canada, L.P. pursuant to the US/Canada Credit Agreement in an aggregate principal amount not to
exceed at any time outstanding $325,000,000, and (ii) Plains Marketing pursuant to the Contango Credit Agreement in an aggregate principal amount not to exceed at any time outstanding
$300,000,000; 

        (d)   Indebtedness
of any Restricted Person owing to another Restricted Person; 

        (e)   Indebtedness
of any Subsidiary described in clause (b) of the definition of "Indebtedness" that is determinable but not yet earned;  provided, Borrower reasonably contemplates that such Indebtedness will be
repaid from the proceeds of one or more advances made by Borrower to such
Subsidiary; 

        (f)    Indebtedness
of a Subsidiary acquired (including acquisition by merger, consolidation or amalgamation) on or after the date hereof by a Restricted Person, which
Indebtedness was incurred by such Subsidiary before the time of such acquisition, merger, consolidation or amalgamation, and was not created in contemplation thereof;  provided, that contemporaneously
with such acquisition, merger, consolidation or amalgamation, and so long as no adverse tax and/or regulatory
consequences are caused thereby, such Subsidiary shall be a Guarantor subject to the provisions of Section 6.9; and 

        (g)   Indebtedness
not otherwise described in the foregoing clauses (a) through (f) owing by any one or more Guarantors in an aggregate principal amount not to
exceed at any time outstanding the greater of (A) $100,000,000 and (B) fifteen percent (15%) of Consolidated Tangible Net Worth. 

        Section 7.2.    Limitation on Liens.    No Restricted Person will create, assume or permit to exist any Lien
upon any of the properties or assets which it now owns or hereafter acquires, except the following ("Permitted Liens"): 

        (a)   Liens
securing (i) on a pari passu basis, both (x) the Obligations and (y) the Liabilities of any
Restricted Person arising under the US/Canada Credit Agreement, and (ii) if required, any related interest hedge rate agreements; 

        (b)   Liens
securing Indebtedness of Plains Marketing under the Contango Credit Agreement at any one time outstanding not in excess of $300,000,000 on (i) Petroleum
Products subject to Cash and Carry Purchases financed pursuant to the Contango Credit Agreement, (ii) hedging contracts covering such Petroleum Products, (iii) contracts for the purchase
or sale of such Petroleum Products and accounts receivable arising therefrom, and (iv) all proceeds of the foregoing; 

        (c)   Liens
imposed by any governmental authority for taxes, assessments or charges not yet due or the validity of which is being contested in good faith and by appropriate
proceedings, if necessary, for which adequate reserves are maintained on the books of any Restricted Person in accordance with GAAP; 

        (d)   pledges
or deposits of cash or securities under worker's compensation, unemployment insurance or other social security legislation; 

        (e)   carriers',
warehousemen's, mechanics', materialmen's, repairmen's, landlord's, or other like Liens (including without limitation, Liens on property of any Restricted
Person in the possession of storage facilities, pipelines or barges) arising in the ordinary course of business for amounts which are not more than 60 days past due or the validity of which is
being contested in good faith and, if necessary, by appropriate proceedings, and for which adequate reserves are maintained on the books of any Restricted Person in accordance with GAAP; 

        (f)    Liens
on cash and Cash Equivalents under or with respect to accounts with brokers or counterparties with respect to hedging contracts consisting of cash, commodities or
futures contracts, options, securities, instruments, and other like assets securing only hedging contracts; 

30

 

        (g)   deposits
of cash or securities to secure the performance of bids, trade contracts (other than for borrowed money), leases, statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business; 

        (h)   easements,
rights-of-way, restrictions and other similar encumbrances incurred in the ordinary course of business and encumbrances consisting of
zoning restrictions, easements, licenses, restrictions on the use of real property or minor imperfections in title thereto which, in the aggregate, are not material in amount, and which do not in any
case materially detract from the value of the property subject thereto or interfere with the ordinary conduct of the business of any Restricted Person; 

        (i)    Liens
in respect of operating leases; 

        (j)    Liens
upon any property or assets directly or indirectly acquired on or after the date hereof by a Restricted Person, each of which either (i) existed on such
property or asset before the time of its acquisition and was not created in anticipation thereof, or (ii) was created solely for the purpose of securing Indebtedness representing, or incurred
to finance, refinance or refund, the cost (including the cost of construction) of such property or asset; provided that no such Lien shall extend to or cover any property or asset of a Restricted
Person other than the property or asset so acquired (or constructed); and any extension, renewal, refinancing, refunding or replacement (or successive extensions, renewals, refinancings, refundings or
replacements), in whole or part, of the foregoing, provided, however, that such Liens shall not cover or secure any additional Indebtedness, obligations, property or asset; 

        (k)   rights
reserved to or vested in any governmental authority by the terms of any right, power, franchise, grant, license or permit, or by any provision of law, to revoke
or terminate any such right, power, franchise, grant, license or permit or to condemn or acquire by eminent domain or similar process; 

        (l)    rights
reserved to or vested by Law in any governmental authority to in any manner, control or regulate in any manner any of the properties of any Restricted Person or
the use thereof or the rights and interests of any Restricted Person therein, in any manner under any and all Laws; 

        (m)  rights
reserved to the grantors of any properties of any Restricted Person, and the restrictions, conditions, restrictive covenants and limitations, in respect thereto,
pursuant to the terms, conditions and provisions of any rights-of-way agreements, contracts or other agreements therewith; 

        (n)   inchoate
Liens in respect of pending litigation or with respect to a judgment which has not resulted in an Event of Default under Section 8.1; 

        (o)   Liens
securing obligations in an aggregate principal amount not to exceed at any time outstanding 10% of Borrower's Consolidated Tangible Net Worth; and 

        (p)   Liens
related to the extension, renewal, refinancing, refunding or replacement (or successive extensions, renewals, refinancings, refundings or replacements), in whole
or in part, of clauses (a), (b) and (o) of this Section 7.2; provided, however, that such Liens shall not cover or secure any additional Indebtedness. 

        Section 7.3.    Limitation on Mergers.    Except as expressly provided in this section, no Significant
Restricted Person (other than (i) a Guarantor for whom a release has been requested pursuant to an event described in clause (b) of Section 6.9 and otherwise is so released, or
(ii) such other Significant Restricted Person, other than Borrower, that is the subject of any such event described in such clause (b) of Section 6.9) will (a) merge or
consolidate or amalgamate with any Person, or liquidate, wind up or dissolve or (b) sell, transfer, lease, exchange or otherwise dispose of, in one transaction or a series of related
transactions, all or substantially all of its business or property, whether now owned or hereafter acquired, to any Person; provided, any such
Significant Restricted Person, other than 

31

 

Borrower,
may (A) merge into or consolidate or amalgamate with, and such business and property may be disposed of to: 

          (i)  any
other Subsidiary of Borrower; provided, if such Significant Restricted Person or such Subsidiary is a Guarantor, a
Guarantor is the surviving or transferee (as applicable) business entity, 

         (ii)  Borrower,
so long as Borrower is the surviving or transferee (as applicable) business entity and after giving effect thereto, no Default exists, or 

        (iii)  any
other Person pursuant or incidental to, or in connection with, any contemporaneous or substantially contemporaneous acquisition,  provided that for purposes of this clause (iii) such merging,
amalgamating, consolidating or transferor Significant Restricted Person is not
Borrower, Guarantor or a Wholly Owned Subsidiary of Borrower, other than a Wholly Owned Subsidiary that was formed, acquired or created solely for purposes of such acquisition or otherwise conducted
no operations and owned no assets, other than of an inconsequential amount and 

(B)
dissolve, liquidate or wind up if such dissolution, liquidation and winding up results from dispositions not prohibited by this Agreement. 

        Section 7.4.    Limitation on New Businesses.    No Restricted Person will materially or substantially engage
directly or indirectly in any business or conduct any operations other than (i) marketing, gathering, transporting (by barge, pipeline, ship, truck or other modes of hydrocarbon
transportation), terminalling, storing, producing, acquiring, developing, exploring for, exploiting, producing, processing, dehydrating and otherwise handling hydrocarbons, including, without
limitation, constructing pipeline, platform, dehydration, processing and other energy-related facilities, (ii) any other business that generates gross income that constitutes "qualifying
income" under Section 7704(d) of the Internal Revenue Code of 1986, as amended, or (iii) activities or services reasonably related or ancillary thereto including entering into hedging
obligations to support those businesses. 

        Section 7.5.    Transactions with Affiliates.    No Restricted Person will engage in any material transaction
with any of its Affiliates except as follows: (a) transactions among Borrower and its Subsidiaries or between Subsidiaries of Borrower; (b) if and to the extent any of them constitute
transactions with Affiliates, transactions governed by the Crude Oil Marketing Agreement among Plains Resources Inc., Plains Illinois Inc., Stocker Resources, L.P., Arguello Inc.,
Calumet Florida Inc. (and successors of each) and Plains Marketing dated November 23, 1998 or the Omnibus Agreement between Plains Resources Inc., Borrower, Plains Marketing,
Plains Pipeline and Plains All American Inc. (and successors of each) dated November 23, 1998, as amended and in effect; (c) any employment, equity award, equity option or equity
appreciation agreement or plan entered into by Borrower or any of its Subsidiaries in the ordinary course of business of Borrower or such Subsidiary; (d) transactions effected in accordance
with the terms of agreements as in effect on the closing date hereof; (e) customary compensation, indemnification and other benefits made available to officers, directors or employees of
Borrower, any of its Subsidiaries or GP LLC, including reimbursement or advancement of out-of-pocket expenses and provisions of officers' and directors' liability insurance;
(f) transactions as contemplated by Borrower's agreement of limited partnership; and (g) transactions on terms which are no less favorable to such Restricted Person than those which
would have been obtainable at the time in arm's-length transactions with Persons other than such Affiliates. 

        Section 7.6.    Limitation on Distributions.    Borrower shall not declare or pay any Distribution so long as
any Default or Event of Default has occurred and is continuing or would result therefrom. 

        Section 7.7.    Restricted Contracts.    Except as expressly provided for in the Loan Documents and as
described in the Disclosure Schedule or pursuant to a Restriction Exception, the substance of which, in detail satisfactory to Administrative Agent, is promptly reported to Administrative Agent, no
Restricted Person will, directly or indirectly, enter into, create, or otherwise allow to exist any contract or other consensual restriction on the ability of any Subsidiary of Borrower to:
(a) pay dividends or 

32

 

make
other distributions to Borrower, (b) redeem equity interests held in it by Borrower, (c) repay loans and other indebtedness owing by it to Borrower, or (d) transfer any of
its assets to Borrower. 

        Section 7.8.    Debt Coverage Ratio.    At the end of any Fiscal Quarter, the Debt Coverage Ratio will not be
greater than the amount set forth below for the applicable time set forth below: 

	 	 	(i) During an Acquisition Period:	 	5.25 to 1.0
	

 	
 	

(ii) Other than an Acquisition Period:	
 	

4.50 to 1.0

As used herein, "Debt Coverage Ratio" means the ratio of (a) Consolidated Funded Indebtedness to (b) Consolidated
EBITDA, for the four Fiscal Quarter period (or other period specified below) most recently ended prior to the date of determination for which financial statements contemplated by Section 6.2(a)
or (b) are available to Borrower; provided, for purposes of this Section 7.8, if, since the beginning of the four Fiscal Quarter period
ending on the date for which Consolidated EBITDA is determined, any Restricted Person shall have made any asset disposition or acquisition, shall have consolidated or merged with or into any Person
(other than another Restricted Person), or shall have made any disposition or acquisition of a Restricted Person or disposition or acquisition of any partial ownership interest in any other Person,
Consolidated EBITDA shall be calculated giving pro forma effect thereto as if the disposition, acquisition, consolidation or merger had occurred on the first day of such period;  provided, with respect
to any Person not constituting a Subsidiary of Borrower, such pro forma calculation of Consolidated EBITDA, with respect to any
such Person, shall be limited to not more than 75% of (i) such Restricted Person's ownership interest in such Person times (ii) the
difference of such Person's (A) Consolidated EBITDA minus (B) Interest Expense and capital expenditures. Such pro forma calculations shall
be determined (i) in good faith by the chief financial officer of Borrower, and (ii) without giving effect to any anticipated or proposed change in operations, revenues, expenses or
other items included in the computation of Consolidated EBITDA, except cost reductions specifically identified at the time of disposition, acquisition, consolidation or merger that are attributable to
personnel reductions, non-recurring maintenance and environmental costs and allocated corporate overhead. 

        Section 7.9.    Interest Coverage Ratio.    The ratio of (a) Consolidated EBITDA to (b) Interest
Expense for each four Fiscal Quarter period ending on or after the date hereof will not be less than 2.75 to 1.0. 

        Section 7.10.    Unrestricted Subsidiaries.    So long as no Default or Event of Default has occurred and is
continuing, and after giving effect to such designation, no Default or Event of Default would result therefrom, Borrower or any Wholly Owned Subsidiary of Borrower may designate one or more
Subsidiaries that are not Guarantors (each such Subsidiary, and each of its Subsidiaries, each an "Unrestricted Subsidiary"), which Unrestricted
Subsidiaries shall be subject to the following: 

        (a)   No
Unrestricted Subsidiary shall be deemed to be a "Restricted Person" or a "Subsidiary" of Borrower for purposes of this Agreement or any other Loan Document, and no
Unrestricted Subsidiary shall be subject to or included within the scope of any provision herein or in any other Loan Document, including without limitation any representation, warranty, covenant or
Event of Default herein or in any other Loan Document, except as set forth in this Section 7.10. 

        (b)   No
Restricted Person shall guarantee or otherwise become liable in respect of any Indebtedness of, grant any Lien on any of its property to secure any Indebtedness of or
other obligation of, or provide any other form of credit support to, any Unrestricted Subsidiary, and no Restricted Person shall enter into any contract or agreement with any Unrestricted Subsidiary,
except on terms no less favorable to such Restricted Person, as applicable, than could be obtained in a comparable arm's length transaction with a non-Affiliate of such Restricted Person. 

33

 

        (c)   Borrower
shall at all times maintain, as between Restricted Persons and Unrestricted Subsidiaries, the separate existence of each Unrestricted Subsidiary. 

        (d)   Restricted
Persons shall notify each Lender Party, not later than five (5) Business Days after any executive officer of Restricted Persons has knowledge of, any
claim, including any claim under any Environmental Law, or any notice of potential liability under any Environmental Law, asserted against any Unrestricted Subsidiary or with respect to any
Unrestricted Subsidiary's properties that would be expected to result in a Material Adverse Change, stating that such notice is being given pursuant to this Section 7.10. 

        Borrower
may designate any Unrestricted Subsidiary to become a Restricted Person if a Default or Event of Default is not continuing, such designation would not result in a Default or an
Event of Default, and immediately thereafter such Subsidiary has no outstanding Indebtedness. Immediately thereafter, Borrower shall promptly notify the Administrative Agent of such designation and
provide to it an officer's certificate that such designation was made in compliance with this Section 7.10. 

        Section 7.11.    No Negative Pledges.    Except as described in the Disclosure Schedule or pursuant to a
Restriction Exception, the substance of which, in detail satisfactory to Administrative Agent, is promptly reported to Administrative Agent, no Restricted Person will, directly or indirectly, enter
into, create, or consent to be bound to any contract or other consensual restriction that restricts the ability of any Restricted Person to create or maintain Liens on its assets in favor of
Administrative Agent and Lenders to secure, in whole or part, the Obligations. 

ARTICLE VIII—Events of Default and Remedies  

        Section 8.1.    Events of Default.    Each of the following events constitutes an Event of Default under this
Agreement: 

        (a)   Borrower
fails to pay the principal component of any Loan when due and payable, whether at a date for the payment of a fixed installment or as a contingent or other
payment becomes due and payable or as a result of acceleration or otherwise; 

        (b)   Any
Restricted Person fails to pay any Obligation for which it is contractually liable (other than the Obligations in subsection (a) above) when due and payable,
whether at a date for the payment of a fixed installment or as a contingent or other payment becomes due and payable or as a result of acceleration or otherwise, within three Business Days after the
same becomes due; 

        (c)   Any
Restricted Person fails to duly observe, perform or comply with any covenant, agreement or provision of Section 6.4 or Article VII; 

        (d)   Any
Restricted Person fails (other than as referred to in subsections (a), (b) or (c) above) to duly observe, perform or comply with any of its obligations
under any covenant, agreement, condition or provision of any Loan Document to which it is a party, and such failure remains unremedied for a period of thirty (30) days after notice of such
failure is given by Administrative Agent to Borrower; 

        (e)   Any
representation or warranty previously, presently or hereafter made in writing by or on behalf of any Restricted Person in connection with any Loan Document shall
prove to have been false or incorrect in any material respect on any date on or as of which made, or any Loan Document at any time ceases to be valid, binding and enforceable as warranted in
Section 5.5 for any reason other than its release or subordination by Administrative Agent; 

        (f)    Any
Restricted Person shall default in the payment when due of any principal of or interest on any of its other Indebtedness, or any net hedging obligations in excess of
$15,000,000 in the aggregate (other than such Indebtedness or hedging obligations the validity of which is being contested in good faith, by appropriate proceedings (if necessary) and for which
adequate reserves with respect thereto are maintained on the books of such Restricted Person as required by GAAP), or any event 

34

 

specified
in any note, agreement, indenture or other document evidencing or relating to any such Indebtedness or hedging obligations shall occur for a period beyond the applicable grace, cure
extension, forbearance or other similar period, if the effect of such event is to cause, or (with the giving of any notice or the lapse of time or both) to permit the holder or holders of such
Indebtedness or hedging obligations (or a trustee or agent on behalf of such holder or holders) to cause, as applicable, such Indebtedness to become due, or to be prepaid in full (whether by
redemption, purchase, offer to purchase or otherwise), prior to its stated maturity, or an early termination event or similar event to occur and such Restricted Person's related net hedging
obligations in excess of $15,000,000 to become due and payable; 

        (g)   Either
(i) any "accumulated funding deficiency" (as defined in Section 412(a) of the Code) in excess of $5,000,000 exists with respect to any ERISA Plan, whether
or not waived by the Secretary of the Treasury or his delegate, or (ii) any Termination Event occurs with respect to any ERISA Plan and the then current value of such ERISA Plan's benefit
liabilities exceeds the then current value of such ERISA Plan's assets available for the payment of such benefit liabilities by more than $5,000,000 (or in the case of a Termination Event involving
the withdrawal of a substantial employer, the withdrawing employer's proportionate share of such excess exceeds such amount); 

        (h)   GP
LLC, General Partner, or any Significant Restricted Person: 

          (i)  has
entered against it a judgment, decree or order for relief by a Tribunal of competent jurisdiction in an involuntary proceeding commenced under any applicable
bankruptcy, insolvency or other similar Law of any jurisdiction now or hereafter in effect, including the federal Bankruptcy Code, as from time to time amended, or has any such proceeding commenced
against it, in each case, which remains undismissed for a period of sixty days; or 

         (ii)  commences
a voluntary case under any applicable bankruptcy, insolvency or similar Law now or hereafter in effect, including the federal Bankruptcy Code, as from time to
time amended; or applies
for or consents to the entry of an order for relief in an involuntary case under any such Law; or makes a general assignment for the benefit of creditors; or is generally unable to pay (or admits in
writing its inability to so pay) its debts as such debts become due; or takes corporate or other action to authorize any of the foregoing; or 

        (iii)  has
entered against it the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of all or a
substantial part of its assets in a proceeding brought against or initiated by it, and such appointment or taking possession is neither made ineffective nor discharged within sixty days after the
making thereof, or such appointment or taking possession is at any time consented to, requested by, or acquiesced to by it; or 

        (i)    Any
Significant Restricted Person: 

          (i)  has
entered against it a final judgment for the payment of money in excess of $15,000,000 (in each case not covered by insurance satisfactory to Administrative Agent in
its discretion), unless the same is stayed or discharged within thirty days after the date of entry thereof (or longer period for which a stay of enforcement is allowed by applicable Law) or an appeal
or appropriate proceeding for review thereof is taken within such period and a stay of execution pending such appeal is obtained; or 

         (ii)  suffers
a writ or warrant of attachment or any similar process to be issued by any Tribunal against all or any substantial part of its assets, and such writ or warrant
of attachment or any similar process is not stayed or released within sixty days after the entry or levy thereof (or longer period for which a stay of enforcement is allowed by applicable Law) or
after any stay is vacated or set aside; 

35

   
        (j)    Any Change in Control occurs. 

Upon
the occurrence of an Event of Default described in subsection (h)(i), (h)(ii) or (h)(iii) of this section: all Obligations shall thereupon be immediately due and payable, without
demand, presentment, notice of demand or of dishonor and nonpayment, protest, notice of protest, notice of intention to accelerate, declaration or notice of acceleration, or any other notice or
declaration of any kind, all of which are hereby expressly waived by Borrower and each Restricted Person who at any time ratifies or approves this Agreement. Upon any such acceleration, any obligation
of any Lender to make any further Loans shall be permanently terminated. During the continuance of any other Event of Default, Administrative Agent at any time and from time to time may (and upon
written instructions from Majority Lenders, Administrative Agent shall), without notice to Borrower or any other Restricted Person, do either or both of the following: (1) terminate or suspend
any obligation of Lenders to make Loans hereunder, and (2) declare any or all of the Obligations immediately due and payable, and all such Obligations shall thereupon be immediately due and
payable, without demand, presentment, notice of demand or of dishonor and nonpayment, protest, notice of protest, notice of intention to accelerate, declaration or notice of acceleration, or any other
notice or declaration of any kind, all of which are hereby expressly waived by Borrower and each Restricted Person who at any time ratifies or approves this Agreement. 

        Section 8.2.    Remedies.    If any Default shall occur and be continuing, each Lender Party may protect and
enforce its rights under the Loan Documents by any appropriate proceedings, including proceedings for specific performance of any covenant or agreement contained in any Loan Document, and each Lender
Party may enforce the payment of any Obligations due it or enforce any other legal or equitable right which it may have. All rights, remedies and powers conferred upon Lender Parties under the Loan
Documents shall be deemed cumulative and not exclusive of any other rights, remedies or powers available under the Loan Documents or at Law or in equity. 

ARTICLE IX—Administrative Agent  

        Section 9.1.    Appointment and Authority.    Each Lender Party hereby irrevocably authorizes Administrative
Agent, and Administrative Agent hereby undertakes, to receive payments of principal, interest and other amounts due hereunder as specified herein and to take all other actions and to exercise such
powers under the Loan Documents as are specifically delegated to Administrative Agent by the terms hereof or thereof, together with all other powers reasonably incidental thereto. The relationship of
Administrative Agent to the other Lender Parties is only that of one commercial lender acting as
administrative agent for others, and nothing in the Loan Documents shall be construed to constitute Administrative Agent a trustee or other fiduciary for any Lender Party or any holder of any
participation in a Note nor to impose on Administrative Agent duties and obligations other than those expressly provided for in the Loan Documents. With respect to any matters not expressly provided
for in the Loan Documents and any matters which the Loan Documents place within the discretion of Administrative Agent, Administrative Agent shall not be required to exercise any discretion or take
any action, and it may request instructions from Lenders with respect to any such matter, in which case it shall be required to act or to refrain from acting (and shall be fully protected and free
from liability to all Lender Parties in so acting or refraining from acting) upon the instructions of Majority Lenders (including itself), provided, however, that Administrative Agent shall not be
required to take any action which exposes it to a risk of personal liability that it considers unreasonable or which is contrary to the Loan Documents or to applicable Law. Upon receipt by
Administrative Agent from Borrower of any communication calling for action on the part of Lenders or upon notice from Borrower or any Lender to Administrative Agent of any Default or Event of Default,
Administrative Agent shall promptly notify each other Lender thereof. 

        Section 9.2.    Exculpation, Administrative Agent's Reliance, Etc.    Neither Administrative Agent nor any of
its directors, officers, agents, attorneys, or employees shall be liable for any action taken or 

36

 

omitted
to be taken by any of them under or in connection with the Loan Documents, INCLUDING THEIR NEGLIGENCE OF ANY KIND, except that each shall be
liable for its own gross negligence or willful misconduct. Without limiting the generality of the foregoing, Administrative Agent (a) may treat the payee of any Note as the holder thereof until
Administrative Agent receives written notice of the assignment or transfer thereof in accordance with this Agreement, signed by such payee and in form satisfactory to Administrative Agent;
(b) may consult with legal counsel (including counsel for Borrower), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to
be taken in good faith by it in accordance with the advice of such counsel, accountants or experts; (c) makes no warranty or representation to any other Lender Party and shall not be
responsible to any other Lender Party for any statements, warranties or representations made in or in connection with the Loan Documents; (d) shall not have any duty to ascertain or to inquire
as to the performance or observance of any of the terms, covenants or conditions of the Loan Documents on the part of any Restricted Person or to inspect the property (including the books and records)
of any Restricted Person; (e) shall not be responsible to any other Lender Party for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of any Loan
Document or any instrument or document furnished in connection therewith; (f) may rely upon the representations and warranties of each Restricted Person or Lender Party in exercising its powers
hereunder; and (g) shall incur no liability under or in respect of the Loan Documents by acting upon any notice, consent, certificate or other instrument or writing (including any facsimile,
telegram, cable or telex) believed by it to be genuine and signed or sent by the proper Person or Persons. 

        Section 9.3.    Credit Decisions.    Each Lender Party acknowledges that it has, independently and without
reliance upon any other Lender Party, made its own analysis of Borrower and the transactions contemplated hereby and its own independent decision to enter into this Agreement and the other Loan
Documents. Each Lender Party also acknowledges that it will, independently and without reliance upon any other Lender Party and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents. 

        Section 9.4.    INDEMNIFICATION.    EACH
LENDER AGREES TO INDEMNIFY ADMINISTRATIVE AGENT (TO THE EXTENT NOT REIMBURSED BY BORROWER WITHIN TEN (10) DAYS AFTER DEMAND) FROM AND AGAINST SUCH LENDER'S PERCENTAGE SHARE OF ANY AND ALL
LIABILITIES, OBLIGATIONS, CLAIMS, LOSSES, DAMAGES, PENALTIES, FINES, ACTIONS, JUDGMENTS, SUITS, SETTLEMENTS, COSTS, EXPENSES OR DISBURSEMENTS (INCLUDING REASONABLE FEES OF ATTORNEYS, ACCOUNTANTS,
EXPERTS AND ADVISORS) OF ANY KIND OR NATURE WHATSOEVER (IN THIS SECTION COLLECTIVELY CALLED "LIABILITIES AND COSTS") WHICH TO ANY EXTENT (IN WHOLE OR IN PART) MAY BE IMPOSED ON, INCURRED BY, OR
ASSERTED AGAINST ADMINISTRATIVE AGENT GROWING OUT OF, RESULTING FROM OR IN ANY OTHER WAY ASSOCIATED WITH THE LOAN DOCUMENTS AND THE TRANSACTIONS AND EVENTS (INCLUDING THE ENFORCEMENT THEREOF) AT ANY
TIME ASSOCIATED THEREWITH OR CONTEMPLATED THEREIN AND BORROWER'S USE OF LOAN PROCEEDS (WHETHER ARISING IN CONTRACT OR IN TORT OR OTHERWISE AND INCLUDING ANY VIOLATION OR NONCOMPLIANCE WITH ANY
ENVIRONMENTAL LAWS BY ANY PERSON OR ANY LIABILITIES OR DUTIES OF ANY PERSON WITH RESPECT TO HAZARDOUS MATERIALS FOUND IN OR RELEASED INTO THE ENVIRONMENT).

THE FOREGOING INDEMNIFICATION SHALL APPLY WHETHER OR NOT SUCH LIABILITIES AND COSTS ARE IN ANY WAY OR TO ANY EXTENT OWED, IN WHOLE OR IN PART, UNDER ANY CLAIM OR THEORY OF
STRICT LIABILITY OR CAUSED, IN WHOLE OR IN PART, BY ANY NEGLIGENT ACT OR OMISSION OF ANY KIND BY ADMINISTRATIVE AGENT, provided only that no Lender shall be obligated under
this section to indemnify Administrative Agent for that portion, if any, of any liabilities and costs which is proximately caused by 

37

 

Administrative
Agent's own individual gross negligence or willful misconduct, as determined in a final judgment. Cumulative of the foregoing, each Lender agrees to reimburse Administrative Agent
promptly upon demand for such Lender's Percentage Share of any costs and expenses to be paid to Administrative Agent by Borrower under Section 10.4(a) to the extent that Administrative Agent is
not timely reimbursed for such expenses by Borrower as provided in such section. As used in this section the term "Administrative Agent" shall refer not only to the Persons designated as such in
Section 1.1 but also to each director, officer, agent, attorney, employee, representative and Affiliate of such Person. 

        Section 9.5.    Rights as Lender.    In its capacity as a Lender, Administrative Agent shall have the same
rights and obligations as any Lender and may exercise such rights as though it were not Administrative Agent. Administrative Agent may accept deposits from, lend money to, act as trustee under
indentures of, and generally engage in any kind of business with any Restricted Person or their Affiliates, all as if it were not Administrative Agent hereunder and without any duty to account
therefor to any other Lender. 

        Section 9.6.    Sharing of Set-Offs and Other Payments.    Each Lender Party agrees that if it
shall, whether through the exercise of rights of banker's lien, set off, or counterclaim against Borrower or otherwise, obtain payment of a portion of the aggregate Obligations owed to it which,
taking into account all distributions made by Administrative Agent under Section 3.1, causes such Lender Party to have received more than it would have received had such payment been received
by Administrative Agent and distributed pursuant to Section 3.1, then (a) it shall be deemed to have simultaneously purchased and shall be obligated to purchase interests in the
Obligations as necessary to cause all Lender Parties to share all payments as provided for in Section 3.1, and (b) such other adjustments shall be made from time to time as shall be
equitable to ensure that Administrative Agent and all Lender Parties share all payments of Obligations as provided in Section 3.1; provided, however, that nothing herein contained shall in any
way affect the right of any Lender Party to obtain payment (whether by exercise of rights of banker's lien, set-off or counterclaim or otherwise) of indebtedness other than the
Obligations. Borrower expressly consents to the foregoing arrangements, subject to Section 10.9. If all or any part of any funds transferred pursuant to this section is thereafter recovered
from the seller under this section which received the same, the purchase provided for in this section shall be deemed to have been rescinded to the extent of such recovery, together with interest, if
any, if interest is required pursuant to the order of a Tribunal to be paid on account of the possession of such funds prior to such recovery. 

        Section 9.7.    Investments.    Whenever Administrative Agent in good faith determines that it is uncertain
about how to distribute to Lender Parties any funds which it has received, or whenever Administrative Agent in good faith determines that there is any dispute among Lender Parties about how such funds
should be distributed, Administrative Agent may choose to defer distribution of the funds which are the subject of such uncertainty or dispute. If Administrative Agent in good faith believes that the
uncertainty or dispute will not be promptly resolved, or if Administrative Agent is otherwise required to invest funds pending distribution to Lender Parties, Administrative Agent shall invest such
funds pending distribution; all interest on any such Investment shall be distributed upon the distribution of such Investment and in the same proportion and to the same Persons as such Investment. All
moneys received by Administrative Agent for distribution to Lender Parties (other than to the Person who is Administrative Agent in its separate capacity as a Lender Party) shall be held by
Administrative Agent pending such distribution solely as Administrative Agent for such Lender Parties, and Administrative Agent shall have no equitable title to any portion thereof. 

        Section 9.8.    Benefit of Article IX.    The provisions of this Article are intended solely for the
benefit of Lender Parties, and no Restricted Person shall be entitled to rely on any such provision or assert any such provision in a claim or defense against any Lender (other than contained in
Section 9.6 or the right to reasonably approve a successor Administrative Agent under Section 9.9). Lender Parties 

38

 

may
waive or amend such provisions as they desire without any notice to or consent of Borrower or any other Restricted Person. 

        Section 9.9.    Resignation.    Administrative Agent may resign at any time by giving written notice thereof to
Lenders and Borrower. Each such notice shall set forth the date of such resignation. Upon any such resignation Majority Lenders shall have the right to appoint a successor Administrative Agent,
subject
to the approval of Borrower, unless a Default has occurred and is continuing, which approval will not be unreasonably withheld. A successor must be appointed for any retiring Administrative Agent, and
such Administrative Agent's resignation shall become effective when such successor accepts such appointment. If, within thirty days after the date of the retiring Administrative Agent's resignation,
no successor Administrative Agent has been appointed and has accepted such appointment, then the retiring Administrative Agent may appoint a successor Administrative Agent, which shall be a commercial
bank organized or licensed to conduct a banking or trust business under the Laws of the United States of America or of any state thereof. Upon the acceptance of any appointment as Administrative Agent
hereunder by a successor Administrative Agent, the retiring Administrative Agent shall be discharged from its duties and obligations under this Agreement and the other Loan Documents. After any
retiring Administrative Agent's resignation hereunder the provisions of this Article IX shall continue to inure to its benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under the Loan Documents. 

        Section 9.10.    Other Agents.    Neither the Syndication Agent nor the Documentation Agent
("Co-Agents"), in such capacities, shall have any duties or responsibilities or incur any liabilities in such agency capacities (as opposed
to its capacity as a Lender) under or in connection with this Agreement or under any of the other Loan Documents. The relationship between Borrower on the one hand, and the Co-Agents and
the Agents, on the other hand, shall be solely that of borrower and lender. None of the Co-Agents shall have any fiduciary responsibilities to Borrower or any of their respective
Affiliates. None of the Co-Agents undertakes any responsibility to Borrower or any of their respective Affiliates to review or inform any such Person of any matter in connection with any
phase of such Person's or such Affiliate's business or operations. 

ARTICLE X—Miscellaneous  

        Section 10.1.    Waivers and Amendments; Acknowledgments.    

        (a)   Waivers and Amendments.    No failure or delay (whether by course of conduct or otherwise) by any Lender in
exercising any right, power or remedy which such Lender Party may have under any of the Loan Documents shall operate as a waiver thereof or of any other right, power or remedy, nor shall any single or
partial exercise by any Lender Party of any such right, power or remedy preclude any other or further exercise thereof or of any other right, power or remedy. No waiver of any provision of any Loan
Document and no consent to any departure therefrom shall ever be effective unless it is in writing and signed as provided below in this section, and then such waiver or consent shall be effective only
in the specific instances and for the purposes for which given and to the extent specified in such writing. This Agreement and the other Loan Documents set forth the entire understanding between the
parties hereto with respect to the transactions contemplated herein and therein and supersede all prior discussions and understandings with respect to the subject matter hereof and thereof, and no
waiver, consent, release, modification or amendment of or supplement to this Agreement or the other Loan Documents shall be valid or effective against any party hereto unless the same is in writing
and signed by (i) if such party is Borrower, by Borrower, (ii) if such party is Administrative Agent, by Administrative Agent, and (iii) if such party is a Lender, by such Lender
or by Administrative Agent on behalf of Lenders with the written consent of Majority Lenders (which consent has already been given as to the termination of the Loan Documents as provided in
Section 10.10). Notwithstanding the foregoing or anything to the contrary herein, Administrative Agent shall not, 

39

 

without
the prior consent of each individual Lender, execute and deliver on behalf of such Lender any waiver or amendment which would: (1) waive any of the conditions specified in
Article IV (provided that Administrative Agent may in its discretion withdraw any request it has made under Section 4.1(i)), (2) increase the maximum amount which such Lender is
committed hereunder to lend, or extend the termination date of such Lender's commitment to lend, (3) reduce any fees payable to such Lender hereunder, or the principal of, or interest on, such
Lender's Note, (4) change any date fixed for any payment of any such fees, principal or interest, or change Section 9.6 in a manner that would alter pro rata sharing of payments required
thereby, (5) amend the definition herein of "Majority Lenders" or otherwise change the Percentage Shares which are required for Administrative Agent, Lenders or any of them to take any
particular action under the Loan Documents, or (6) except as expressly provided herein or in any other Loan Document, release (i) Borrower from its obligation to pay such Lender's Note,
(ii) any Guarantor from its guaranty of such payment or (iii) any Restricted Person from the negative pledge covenant set forth in Section 7.11 hereof. 

        (b)   Acknowledgments and Admissions.    Borrower hereby represents, warrants, acknowledges and admits that
(i) it has been advised by counsel in the negotiation, execution and delivery of the Loan Documents to which it is a party, (ii) no Lender Party has any fiduciary obligation toward
Borrower with respect to any Loan Document or the transactions contemplated thereby, (iii) the relationship pursuant to the Loan Documents between Borrower and the other Restricted Persons, on
one hand, and each Lender Party, on the other hand, is and shall be solely that of debtor and creditor, respectively, and (iv) no partnership or joint venture exists with respect to the Loan
Documents between any Restricted Person and any Lender Party. 

        (c)   Representation by Lenders.    Each Lender hereby represents that it will acquire its Notes for its own account
in the ordinary course of its commercial lending or investing business; however, the disposition of such Lender's property shall at all times be and remain within its control and, in particular and
without limitation, such Lender may sell or otherwise transfer its Note, any participation interest or
other interest in its Note, or any of its other rights and obligations under the Loan Documents subject to compliance with Sections 10.5(b) through (f), inclusive, and applicable Law. 

        (d)   JOINT ACKNOWLEDGMENT.    THIS WRITTEN AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

        THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

        Section 10.2.    Survival of Agreements; Cumulative Nature.    All of Restricted Persons' various
representations, warranties, covenants and agreements in the Loan Documents shall survive the execution and delivery of this Agreement and the other Loan Documents and the performance hereof and
thereof, including the making or granting of the Loans and the delivery of the Notes and the other Loan Documents, and shall further survive until all of the Obligations are paid in full to each
Lender Party and all of Lender Parties' obligations to Borrower are terminated. The rights, powers, and privileges granted to Lender Parties in the Loan Documents, are cumulative, and, except for
expressly specified waivers and consents, no Loan Document shall be construed in the context of another to diminish, nullify, or otherwise reduce the benefit to any Lender Party of any such right,
power or privilege. 

        Section 10.3.    Notices.    All notices, requests, consents, demands and other communications required or
permitted under any Loan Document shall be in writing, unless otherwise specifically provided in such Loan Document (provided that Administrative Agent may give telephonic notices to the other Lender
Parties), and shall be deemed sufficiently given or furnished if delivered by personal 

40

 

delivery,
by facsimile or other electronic transmission, by delivery service with proof of delivery, or by registered or certified United States mail, postage prepaid, to Borrower and Restricted
Persons at the address of Borrower specified on the signature pages hereto and to each Lender Party at its address specified on the signature pages hereto (unless changed by similar notice in writing
given by the particular Person whose address is to be changed). Any such notice or communication shall be deemed to have been given (a) in the case of personal delivery or delivery service, as
of the date of first attempted delivery during normal business hours at the address provided herein, (b) in the case of facsimile or other electronic transmission, upon receipt, or
(c) in the case of registered or certified United States mail, three days after deposit in the mail; provided, however, that no Borrowing Notice or Continuation/Conversion Notice shall become
effective until actually received by Administrative Agent. 

        Section 10.4.    Payment of Expenses; Indemnity.    

        (a)   Payment of Expenses.    Whether or not the transactions contemplated by this Agreement are consummated,
Borrower will promptly (and in any event, within 30 days after any invoice or other statement or notice) pay: (i) all transfer, stamp, mortgage, documentary or other similar taxes,
assessments or charges levied by any governmental or revenue authority in respect of this Agreement or any of the other Loan Documents or any other document referred to herein or therein,
(ii) all reasonable costs and expenses incurred by or on behalf of Administrative Agent (including attorneys' fees, consultants' fees and engineering fees, travel costs and miscellaneous
expenses) in connection with (1) the negotiation, preparation, execution and delivery of the Loan Documents, and any and all consents, waivers or other documents or instruments relating
thereto, (2) the filing, recording, refiling and re-recording of any Loan Documents and any other documents or instruments or further assurances required to be filed or recorded or
refiled or re-recorded by the terms of any Loan Document, (3) the borrowings hereunder and other action reasonably required in the course of administration hereof,
(4) monitoring or confirming (or preparation or negotiation of any document related to) Borrower's compliance with any covenants or conditions contained in this Agreement or in any Loan
Document, and (iii) all reasonable costs and expenses incurred by or on behalf of any Lender Party (including attorneys' fees, consultants' fees and accounting fees) in connection with the
defense or enforcement of any of the Loan Documents (including this section) or the defense of any Lender Party's exercise of its rights thereunder. In addition to the foregoing, until all Obligations
have been paid in full, Borrower will also pay or reimburse Administrative Agent for all reasonable out-of-pocket costs and expenses of Administrative Agent or its agents or
employees in connection with the continuing administration of the Loans and the related due diligence of Administrative Agent, including travel and miscellaneous expenses and fees and expenses of
Administrative Agent's outside counsel and consultants engaged in connection with the Loan Documents. 

        (b)   Indemnity.    Borrower agrees to indemnify each Lender Party, upon demand, from and against any and all
liabilities, obligations, claims, losses, damages, penalties, fines, actions, judgments, suits, settlements, costs, expenses or disbursements (including reasonable fees of attorneys, accountants,
experts and advisors) of any kind or nature whatsoever (in this section collectively called "liabilities and costs") which to any extent (in whole or in part) may be imposed on, incurred by, or
asserted against such Lender Party growing out of, resulting from or in any other way associated with the Loan Documents and the transactions and events (including the enforcement or defense thereof)
at any time associated therewith or contemplated therein and Borrower's use of Loan proceeds (whether arising in contract or in tort or otherwise and including any violation or noncompliance with any
Environmental Laws by any Lender Party or any other Person or any liabilities or duties of any Lender Party or any other Person with respect to Hazardous Materials found in or released into the
environment). 

41

 

THE FOREGOING INDEMNIFICATION SHALL APPLY WHETHER OR NOT SUCH LIABILITIES AND COSTS ARE IN ANY WAY OR TO ANY EXTENT OWED, IN WHOLE OR IN PART, UNDER ANY CLAIM OR THEORY OF
STRICT LIABILITY OR CAUSED, IN WHOLE OR IN PART, BY ANY NEGLIGENT ACT OR OMISSION OF ANY KIND BY ANY LENDER PARTY, provided only that no Lender Party shall be entitled under
this section to receive indemnification for that portion, if any, of any liabilities and costs which is proximately caused by its own individual gross negligence or willful misconduct, as determined
in a final judgment. If any Person (including Borrower or any of its Affiliates) ever alleges such gross negligence or willful misconduct by
any Lender Party, the indemnification provided for in this section shall nonetheless be paid upon demand, subject to later adjustment or reimbursement, until such time as a court of competent
jurisdiction enters a final judgment as to the extent and effect of the alleged gross negligence or willful misconduct. As used in this section the term "Lender Party" shall refer not only to each
Person designated as such in Section 1.1 but also to each director, officer, trustee, agent, attorney, employee, representative and Affiliate of such Persons. 

        (c)   Interest.    Borrower hereby promises to each Lender Party interest at the Default Rate on all Obligations to
pay fees or to reimburse or indemnify any Lender Party which Borrower has promised to pay to such Lender Party pursuant to this Section 10.4 and which are not paid when due. Such interest shall
accrue from the date such Obligations become due until they are paid. 

        Section 10.5.    Joint and Several Liability; Parties in Interest; Assignments; Replacement Notes.    

        (a)   All
Obligations which are incurred by two or more Restricted Persons shall be their joint and several obligations and liabilities of such Restricted Persons. All grants,
covenants and agreements contained in the Loan Documents shall bind and inure to the benefit of the parties thereto and their respective successors and permitted assigns; provided, however, that no
Restricted Person may assign or transfer any of its rights or delegate any of its duties or obligations under any Loan Document without the prior consent of all Lenders. Neither Borrower nor any
Affiliates of Borrower shall directly or indirectly purchase or otherwise retire any Obligations owed to any Lender nor will any Lender accept any offer to do so, unless each Lender shall have
received substantially the same offer with respect to the same Percentage Share of the Obligations owed to it. If Borrower or any Affiliate of Borrower at any time purchases some but less than all of
the Obligations owed to all Lender Parties, such purchaser shall not be entitled to any rights of any Lender under the Loan Documents unless and until Borrower or its Affiliates have purchased all of
the Obligations. 

        (b)   No
Lender shall sell any participation interest in its commitment hereunder or any of its rights under its Loans or under the Loan Documents to any Person unless the
agreement between such Lender and such participant at all times provides: (i) that such participation exists only as a result of the agreement between such participant and such Lender and that
such transfer does not give such participant any right to vote as a Lender or any other direct claims or rights against any Person other than such Lender, (ii) that such participant is not
entitled to payment from any Restricted Person under Sections 3.2 through 3.6 of amounts in excess of those payable to such Lender under such sections (determined without regard to the sale of such
participation), and (iii) unless such participant is an Affiliate of such Lender, that such participant shall not be entitled to require such Lender to take any action under any Loan Document
or to obtain the consent of such participant prior to taking any action under any Loan Document, except for actions which would require the consent of all Lenders under subsection (a) of
Section 10.1. No Lender selling such a participation shall, as between the other parties hereto and such Lender, be relieved of any of its obligations hereunder as a result of the sale of such
participation. Each Lender which sells any such participation to any Person (other than an Affiliate of such Lender) shall give prompt notice thereof to Administrative Agent and Borrower; provided,
however, that no liability shall arise if any such Lender fails to give such notice to Borrower. 

        (c)   Except
for sales of participations under the immediately preceding subsection, no Lender shall make any assignment or transfer of any kind of its commitments or any of
its rights under its Loans or 

42

 

under
the Loan Documents, except for assignments to an Eligible Transferee or, subject to the provisions of subsection (g) below, to an affiliate, and then only if such assignment is made in
accordance with the following requirements: 

          (i)  In
the case of an assignment by a Lender of less than all of its Loans and Commitment, each such assignment shall apply to a consistent percentage of all Loans owing to
the assignor Lender hereunder and to the same percentage of the unused portion of the assignor Lender's Commitment, so that after such assignment is made both the assignee Lender and the assignor
Lender shall have a fixed (and not a varying) Percentage Share in its Loans and be committed to make that Percentage Share of all future Loans, and the Percentage Share of such Commitment of each of
the assignor and assignee shall equal or exceed $5,000,000. 

         (ii)  The
parties to each such assignment shall execute and deliver to Administrative Agent, for its acceptance and recording in the "Register" (as defined below in this
section), an Assignment and Acceptance in the form of Exhibit F, appropriately completed, together with the Note subject to such assignment and a processing fee payable by such assignor Lender
(and not at Borrower's expense) to Administrative Agent of $3,500. Upon such execution, delivery, and payment and upon the satisfaction of the conditions set out in such Assignment and Acceptance,
then (i) Borrower shall issue new Notes to such assignor and assignee upon return of the old Notes to Borrower, and (ii) as of the "Settlement Date" specified in such Assignment and
Acceptance the assignee thereunder shall be a party hereto and a Lender hereunder and Administrative Agent shall thereupon deliver to Borrower and each Lender a revised Schedule 1 hereto
showing the revised Percentage Shares and total Percentage Shares of such assignor Lender and such assignee Lender and the revised Percentage Shares and total Percentage Shares of all other Lenders. 

        (iii)  Each
assignee Lender which is not a United States person (as such term is defined in Section 7701(a)(30) of the Code) for Federal income tax purposes, shall (to
the extent it has not already done so) provide Administrative Agent and Borrower with the "Prescribed Forms" referred to in Section 3.7(d). 

        (d)   Any
Lender may at any time pledge all or any portion of its Loan and Note (and related rights under the Loan Documents including any portion of its Note) to any of the
twelve (12) Federal Reserve Banks organized under Section 4 of the Federal Reserve Act, 12 U.S.C. Section 341. No such pledge or enforcement thereof shall release any such Lender
from its obligations under any of the Loan Documents; provided that all related costs, fees and expenses in connection with any such pledge shall be for the sole account of such Lender. 

        (e)   By
executing and delivering an Assignment and Acceptance, each assignee Lender thereunder will be confirming to and agreeing with Borrower, Administrative Agent and each
other Lender Party that such assignee understands and agrees to the terms hereof, including Article IX hereof. 

        (f)    Administrative
Agent shall maintain a copy of each Assignment and Acceptance and a register for the recordation of the names and addresses of Lenders and the Percentage
Shares of, and principal amount of the Loans owing to, each Lender from time to time (in this section called the "Register"). The entries in the Register shall be conclusive, in the absence of
manifest error, and Borrower and each Lender Party may treat each Person whose name is recorded in the Register as a Lender Party hereunder for all purposes. The Register shall be available for
inspection by Borrower or any Lender Party at any reasonable time and from time to time upon reasonable prior notice. 

        (g)   Any
Lender may assign or transfer its commitment or its rights under its Loans or under the Loan Documents to (i) any Affiliate that is wholly-owned direct or
indirect subsidiary of such Lender or of any Person that wholly owns, directly or indirectly, such Lender, or (ii) if such Lender is a fund that makes or invests in bank loans, any other fund
that makes or invests in bank loans and is advised 

43

 

or
managed by (A) the same investment advisor as any Lender or (B) any Affiliate of such investment advisor that is a wholly-owned direct or indirect subsidiary of any Person that wholly
owns, directly or indirectly, such investment advisor, subject to the following additional conditions (x), (y) and (z), with respect to assignments pursuant to clause (i) above, and
subject to the following additional conditions (y) and (z) with respect to assignments pursuant to clause (ii) above: 

         (x)  any
right of such Lender assignor and such assignee to vote as a Lender, or any other direct claims or rights against any other Persons, shall be uniformly exercised by
both such assignor and assignee or pursued in the manner that such Lender assignor would have so exercised such vote, claim or right if it had not made such assignment or transfer; 

         (y)  such
assignee shall not be entitled to payment from any Restricted Person under Sections 3.2 through 3.7 of amounts in excess of those payable to such Lender assignor
under such sections (determined without regard to such assignment or transfer); and 

         (z)  if
such Lender assignor is a Lender that assigns or transfers to such assignee any of such Lender Commitment, assignee may become primarily liable for such Commitment,
but such assignment or transfer shall not relieve or release such Lender from such Commitment. 

        (h)   Upon
receipt of an affidavit reasonably satisfactory to Borrower of an officer of any Lender as to the loss, theft, destruction or mutilation of its Note which is not of
public record, and, in the case of any such loss, theft, destruction or mutilation, upon cancellation of such Note, Borrower will execute and deliver, in lieu thereof, a replacement Note in the same
principal amount thereof and otherwise of like tenor. 

        Section 10.6.    Confidentiality.    Each Lender Party agrees (on behalf of itself and each of its Affiliates,
and each of its and their directors, officers, agents, attorneys, employees, and representatives) that it (and each of them) will take all reasonable steps to keep confidential any
non-public information supplied to it by or at the direction of any Restricted Person so identified when delivered, provided, however, that this restriction shall not apply to
(a) information which has at the time in question entered the public domain, other than as a result of a breach of this Section 10.6, (b) information which is required to be
disclosed by Law (whether valid or invalid) of any Tribunal, (c) any disclosure to any Lender Party's Affiliates, auditors, attorneys or agents (provided each such Person first agrees to hold
such information in confidence on the terms provided in this Section 10.6), (d) any disclosure to any other Lender Party or to any purchaser or prospective purchaser of participations or
other interests in any Loan or Loan Document (provided each such Person first agrees to hold such information in confidence on the terms provided in this section), or (e) any disclosure in the
course of enforcing its rights and remedies during the existence of an Event of Default. 

        Section 10.7.    Governing Law; Submission to Process.    EXCEPT TO THE EXTENT THAT THE
LAW OF ANOTHER JURISDICTION IS EXPRESSLY ELECTED IN A LOAN DOCUMENT, THE LOAN DOCUMENTS SHALL BE DEEMED CONTRACTS AND INSTRUMENTS MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL BE CONSTRUED
AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK AND THE LAWS OF THE UNITED STATES OF AMERICA, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. BORROWER HEREBY AGREES
THAT ANY LEGAL ACTION OR PROCEEDING AGAINST BORROWER WITH RESPECT TO THIS AGREEMENT, THE NOTES OR ANY OF THE LOAN DOCUMENTS MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED
STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK AS LENDER PARTIES MAY ELECT, AND, BY EXECUTION AND DELIVERY HEREOF, BORROWER ACCEPTS AND CONSENTS FOR ITSELF AND IN RESPECT TO ITS PROPERTY,
GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS. EACH BORROWER AGREES THAT SECTIONS 5-1401 AND 5-1402 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK SHALL APPLY TO THE LOAN DOCUMENTS AND WAIVES ANY RIGHT TO STAY OR TO DISMISS ANY ACTION OR PROCEEDING BROUGHT BEFORE SAID COURTS ON THE BASIS OF FORUM NON
CONVENIENS. IN FURTHERANCE OF THE FOREGOING, BORROWER HEREBY IRREVOCABLY DESIGNATES AND APPOINTS  

44

 

 CORPORATION SERVICE COMPANY, 80 STATE STREET, ALBANY, NEW YORK 12207, AS AGENT OF BORROWER TO RECEIVE SERVICE OF ALL PROCESS BROUGHT AGAINST BORROWER WITH RESPECT TO ANY SUCH PROCEEDING IN ANY SUCH
COURT IN NEW YORK, SUCH SERVICE BEING HEREBY ACKNOWLEDGED BY BORROWER TO BE EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT. COPIES OF ANY SUCH PROCESS SO SERVED SHALL ALSO, IF PERMITTED BY LAW, BE
SENT BY REGISTERED MAIL TO BORROWER AT ITS ADDRESS SET FORTH BELOW, BUT THE FAILURE OF BORROWER TO RECEIVE SUCH COPIES SHALL NOT AFFECT IN ANY WAY THE SERVICE OF SUCH PROCESS AS AFORESAID. BORROWER
SHALL FURNISH TO LENDER PARTIES A CONSENT OF CORPORATION SERVICE COMPANY AGREEING TO ACT HEREUNDER PRIOR TO THE EFFECTIVE DATE OF THIS AGREEMENT. NOTHING HEREIN SHALL AFFECT THE RIGHT OF LENDER
PARTIES TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF LENDER PARTIES TO BRING PROCEEDINGS AGAINST BORROWER IN THE COURTS OF ANY OTHER JURISDICTION. IF FOR ANY
REASON CORPORATION SERVICE COMPANY SHALL RESIGN OR OTHERWISE CEASE TO ACT AS BORROWER'S AGENT, BORROWER HEREBY IRREVOCABLY AGREES TO (A) IMMEDIATELY DESIGNATE AND APPOINT A NEW AGENT ACCEPTABLE
TO ADMINISTRATIVE AGENT TO SERVE IN SUCH CAPACITY AND, IN SUCH EVENT, SUCH NEW AGENT SHALL BE DEEMED TO BE SUBSTITUTED FOR CORPORATION SERVICE COMPANY FOR ALL PURPOSES HEREOF AND (B) PROMPTLY
DELIVER TO ADMINISTRATIVE AGENT THE WRITTEN CONSENT (IN FORM AND SUBSTANCE SATISFACTORY TO ADMINISTRATIVE AGENT) OF SUCH NEW AGENT AGREEING TO SERVE IN SUCH CAPACITY.

        Section 10.8.    Limitation on Interest.    Lender Parties, Restricted Persons and any other parties to the
Loan Documents intend to contract in strict compliance with applicable usury Law from time to time in effect. In furtherance thereof such Persons stipulate and agree that none of the terms and
provisions contained in the Loan Documents shall ever be construed to create a contract to pay, for the use, forbearance or detention of money, interest in excess of the maximum amount of interest
permitted to be contracted for, charged, or received by applicable Law from time to time in effect. Neither any Restricted Person nor any present or future guarantors, endorsers, or other Persons
hereafter becoming liable for payment of any Obligation shall ever be liable for unearned interest thereon or shall ever be required to pay interest thereon in excess of the maximum amount that may be
lawfully contracted for, charged, or received under applicable Law from time to time in effect, and the provisions of this section shall control over all other provisions of the Loan Documents which
may be in conflict or apparent conflict herewith. Lender Parties expressly disavow any intention to contract for, charge, or receive excessive unearned interest or finance charges in the event the
maturity of any Obligation is accelerated. If (a) the maturity of any Obligation is accelerated for any reason, (b) any Obligation is prepaid and as a result any amounts held to
constitute interest are determined to be in excess of the legal maximum, or (c) any Lender or any other holder of any or all of the Obligations shall otherwise collect moneys which are
determined to constitute interest which would otherwise increase the interest on any or all of the Obligations to an amount in excess of that permitted to be contracted for, charged or received by
applicable Law then in effect, then all sums determined to constitute interest in excess of such legal limit shall, without penalty, be promptly applied to reduce the then outstanding principal of the
related Obligations or, at such Lender's or holder's option, promptly returned to Borrower or other payor thereof upon such determination. In determining whether or not the interest paid or payable,
under any specific circumstance, exceeds the maximum amount permitted under applicable Law, Lender Parties and Restricted Persons (and any other payors thereof) shall to the greatest extent permitted
under applicable Law, (i) characterize any non-principal payment as an expense, fee or premium rather than as interest, (ii) exclude voluntary prepayments and the effects
thereof, and (iii) amortize, prorate, allocate, and spread the total amount of interest throughout the entire contemplated term of the instruments evidencing the Obligations in accordance with
the amounts outstanding from time to time thereunder and the maximum legal rate of interest from time to time in effect under applicable Law in order to lawfully charge the maximum amount of interest
permitted under applicable Law. In the event applicable Law provides for an interest ceiling under Chapter 303 of the Texas Finance Code (the "Texas Finance
Code") as amended, to the extent that the Texas 

45

 

Finance
Code is mandatorily applicable to any Lender, for that day, the ceiling shall be the "weekly ceiling" as defined in the Texas Finance Code, provided that if any applicable Law permits greater
interest, the Law permitting the greatest interest shall apply. In no event shall Chapter 346 of the Texas Finance Code apply to this Agreement or any other Loan Document, or any transactions or loan
arrangement provided or contemplated hereby or thereby. 

        Section 10.9.    Right of Offset.    At any time and from time to time during the continuance of any Event of
Default, each Lender is hereby authorized to offset against the Obligations then due and payable (without notice to any Restricted Person), (a) any and all moneys, securities or other property
(and the proceeds therefrom) of such Restricted Person now or hereafter held or received by or in transit to any Lender from or for the account of such Restricted Person, whether for safekeeping,
custody, pledge, transmission, collection or otherwise, (b) any and all deposits (general or special, time or demand, provisional or final) of such Restricted Person with any Lender, and
(c) any other credits and claims of such Restricted Person at any time existing against any Lender, including claims under certificates of deposit. 

        Section 10.10.    Termination; Limited Survival.    In its sole and absolute discretion Borrower may at any
time that no Obligations are owing or outstanding elect in a written notice delivered to Administrative Agent to terminate this Agreement. Upon receipt by Administrative Agent of such a notice, if no
Obligations are then owing or outstanding this Agreement and all other Loan Documents shall thereupon be terminated and the parties thereto released from all prospective obligations thereunder.
Notwithstanding the foregoing or anything herein to the contrary, any waivers or admissions made by any Restricted Person in any Loan Document, any Obligations under Sections 3.2 through 3.6, and any
obligations which any Person may have to indemnify or compensate any Lender Party shall survive any termination of this Agreement or any other Loan Document. At the request and expense of Borrower,
Administrative Agent shall prepare and execute all necessary instruments to reflect and effect such termination of the Loan Documents. Administrative Agent is hereby authorized to execute all such
instruments on behalf of all Lenders, without the joinder of or further action by any Lender. 

        Section 10.11.    Severability.    If any term or provision of any Loan Document shall be determined to be
illegal or unenforceable all other terms and provisions of the Loan Documents shall nevertheless remain effective and shall be enforced to the fullest extent permitted by applicable Law. 

        Section 10.12.    Counterparts.    This Agreement may be separately executed in any number of counterparts and
by different parties hereto in separate counterparts, each of which when so executed shall be deemed to constitute one and the same Agreement. 

        Section 10.13.    Waiver of Jury Trial, Punitive Damages, etc.    RESTRICTED PERSONS
AND LENDER PARTIES MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH, THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENTS CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY.
THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR LENDERS TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND MAKE THE LOANS. BORROWER AND EACH LENDER PARTY HEREBY FURTHER
(A) IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY "SPECIAL DAMAGES," AS DEFINED BELOW,
(B) CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OR AGENT OR COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED THAT SUCH PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS, AND (C) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY
AND THEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED IN THIS SECTION. AS  

46

 

 USED IN THIS SECTION, "SPECIAL DAMAGES" INCLUDES ALL SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES (REGARDLESS OF HOW NAMED), BUT DOES NOT INCLUDE ANY PAYMENTS OR FUNDS WHICH ANY PARTY HERETO
HAS EXPRESSLY PROMISED TO PAY OR DELIVER TO ANY OTHER PARTY HERETO.

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK.] 

47

 

        IN
WITNESS WHEREOF, this Agreement is executed as of the date first written above. 

	Borrower:	 	PLAINS ALL AMERICAN PIPELINE, L.P.
	

 	
 	
By:	

PLAINS AAP, L.P.,

its general partner
	

 	
 	

By:	

PLAINS ALL AMERICAN GP LLC,

its general partner
	

 	
 	

By:	

/s/  AL SWANSON      
 Al Swanson, Vice President and Treasurer
	

Address for Borrower and Guarantors:	
 	

333 Clay Street, Suite 1600

Houston, Texas 77002

Attention: Al Swanson

Telephone: (713) 646-4455

Fax: (713) 646-4564

Website: www.paalp.com

48

 

	

 	
 	

BANK ONE, NA,

Administrative Agent and a Lender
	

 	
 	

By:	

/s/  CHARLES KINGSWELL-SMITH      
 Charles Kingswell-Smith

Managing Director
	

 	
 	

FLEET NATIONAL BANK,

Syndication Agent and a Lender
	

 	
 	

By:	

/s/  TERRENCE RONAN      
 Terrence Ronan, Managing Director
	

 	
 	

WACHOVIA BANK,

NATIONAL ASSOCIATION,

Documentation Agent and a Lender
	

 	
 	

By:	

/s/  DAVID HUMPHREYS      
 David Humphreys, Director

49

SCHEDULE 1 

LENDER SCHEDULE  

	Lender
 
	 	Commitment
	 	Percentage

Share(1)
	 
	Bank One, NA	 	$	66,666,666.67	 	33.333333	%
	Fleet National Bank	 	$	66,666,666.67	 	33.333333	%
	Wachovia Bank, National Association	 	$	66,666,666.66	 	33.333333	%
	 	 	
	 	
	 
	TOTALS	 	$	200,000,000.00	 	100.000000	%

	(1)
	Rounded
to six decimal places 

LENDER INFORMATION  

	Lender
 
	 	Contact
	 	Domestic Lending Office
	 	LIBOR Lending Office

	Bank One, NA	 	910 Travis

Houston, Texas 77002

Attn: Charles Kingswell-Smith

Phone: 713-751-7803

Fax: 713-751-3544	 	910 Travis

Houston, Texas 77002	 	910 Travis

Houston, Texas 77002
	

Fleet National Bank	
 	

100 Federal Street

Energy & Utilities

MADE 10009H

Boston, Massachusetts 02110

Attn: Terrence Ronan

Phone: 617-434-5472

Fax: 617-434-3652	
 	

100 Federal Street

Boston, Massachusetts 02110	
 	

100 Federal Street

Boston, Massachusetts 02110
	

Wachovia Bank

National Association	
 	

1001 Fannin, Suite 2255

Houston, Texas 77002

Attn: David Humphreys

Phone: 713-650-9843

Fax: 713-650-6354	
 	

1001 Fannin, Suite 2255

Houston, Texas 77002	
 	

1001 Fannin, Suite 2255

Houston, Texas 77002

SCHEDULE
3 

PRICING GRID  

	Applicable

Rating Level
	 	Applicable Margin

Base Rate Loans
	 	Applicable Margin

LIBOR Loans
	 	Commitment

Fee Rate
	 
	Level I	 	0.000	%	0.625	%	0.125	%
	Level II	 	0.000	%	0.750	%	0.175	%
	Level III	 	0.000	%	1.000	%	0.200	%
	Level IV	 	0.000	%	1.250	%	0.225	%

During
any Acquisition Period, the Applicable Margin as set forth above shall be increased by (i) 0.125% per annum for Level I, and (ii) 0.25% per annum for Level II, Level III, and
Level IV. 

In
addition to the foregoing, on and after the Conversion Date, the Applicable Margin as set forth above shall be increased by (i) 0.250% per annum if any PAA Debt Rating from any Rating Agency
is included in any of Level I, Level II or Level III, and (ii) 0.500% per annum if no PAA Debt Rating from any Rating Agency is included in any of Level I, Level II or Level III. 

   
EXHIBIT A 

NOTE 

	$                  	 	New York, New York	 	            , 200    

        FOR VALUE RECEIVED, the undersigned, Plains All American Pipeline, L.P., a Delaware limited partnership (herein called "Borrower"), hereby promises to pay to the
order of                        (herein called "Lender"), the principal sum
of                        
($                        ), or, if greater or less, the aggregate unpaid principal amount of the Loans made under this
Note by Lender to Borrower pursuant to the terms of the Credit Agreement (as hereinafter defined), together with interest on the unpaid principal balance thereof as hereinafter set forth, both
principal and interest payable as herein provided in lawful money of the United States of America at the offices of Administrative Agent under the Credit Agreement, as from time to time may be
designated by the holder of this Note. 

        This
Note (a) is issued and delivered under that certain Interim 364-Day Credit Agreement dated April 1, 2004 among Borrower, Bank One, NA, as Administrative
Agent, and the lenders (including Lender) referred to therein (herein, as from time to time supplemented, amended or restated, called the "Credit Agreement"), and is a "Note" as defined therein,
(b) is subject to the terms and provisions of the Credit Agreement, which contains provisions for payments and prepayments hereunder and acceleration of the maturity hereof upon the happening
of certain stated events, and (c) is guaranteed by and entitled to the benefits of certain guaranties (as identified in the Credit Agreement). Payments on this Note shall be made and applied as
provided herein and in the Credit Agreement. Reference is hereby made to the Credit Agreement for a description of certain rights, limitations of rights, obligations and duties of the parties hereto
and for the meanings assigned to terms
used and not defined herein and to the guaranties for a description of the nature and extent of the guarantee thereby provided and the rights of the parties thereto. 

        The
principal amount of this Note shall bear interest and shall be due and payable from time to time as provided in the Credit Agreement with the remaining unpaid principal balance of
this Note being due and payable in full on or before the Maturity Date. Accrued and unpaid interest hereon shall be due and payable on each Interest Payment Date as provided in the Credit Agreement
and on the Maturity Date. 

        Notwithstanding
the foregoing paragraph and all other provisions of this Note, in no event shall the interest payable hereon, whether before or after maturity, exceed the maximum
interest which, under applicable Law, may be charged on this Note, and this Note is expressly made subject to the provisions of the Credit Agreement which more fully set out the limitations on how
interest accrues hereon. 

        If
this Note is placed in the hands of an attorney for collection after default, or if all or any part of the indebtedness represented hereby is proved, established or collected in any
court or in any bankruptcy, receivership, debtor relief, probate or other court proceedings, Borrower and all endorsers, sureties and guarantors of this Note jointly and severally agree to pay
reasonable attorneys' fees and collection costs to the holder hereof in addition to the principal and interest payable hereunder. 

        Borrower
and all endorsers, sureties and guarantors of this Note hereby severally waive demand, presentment, notice of demand and of dishonor and nonpayment of this Note, protest, notice
of protest, notice of intention to accelerate the maturity of this Note, declaration or notice of acceleration of the maturity of this Note, diligence in collecting, the bringing of any suit against
any party and any notice of or defense on account of any extensions, renewals, partial payments or changes in any manner of or in this Note or in any of its terms, provisions and covenants, or any
releases or substitutions of any security, or any delay, indulgence or other act of any trustee or any holder hereof, whether before or after maturity. 

1

 

        THIS NOTE AND THE RIGHTS AND DUTIES OF THE PARTIES HERETO SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAW), EXCEPT TO THE EXTENT THE SAME ARE GOVERNED BY APPLICABLE FEDERAL LAW.

	 	 	PLAINS ALL AMERICAN PIPELINE, L.P.
	

 	
 	

By:	

PLAINS AAP, L.P.,

its general partner
	

 	
 	

By:	

PLAINS ALL AMERICAN GP LLC,

its general partner
	

 	
 	

By:	

 Name:

Title:

2

   
EXHIBIT B 

BORROWING NOTICE  

        Reference is made to that certain Interim 364-Day Credit Agreement dated April 1, 2004 among Plains All American Pipeline, L.P. ("Borrower"),
Bank One, NA, as Administrative Agent, and certain financial institutions ("Lenders"). Terms which are defined in the Agreement are used herein with the meanings given them in the Agreement. Pursuant
to the terms of the Agreement, Borrower hereby requests Lenders to make Loans to Borrower in the aggregate principal amount of
$                                         
 and specifies                        ,
            , as the date Borrower desires for Lenders to make such Loans and for Administrative Agent to deliver to Borrower the proceeds thereof. 

Type
of Loan: [LIBOR Loans] [Base Rate Loans] 

Length
of Interest Rate for LIBOR Loan (1, 2, 3, 6 or 9 months): _____________ 

        To
induce Lenders to make such Loans, Borrower hereby represents, warrants, acknowledges, and agrees to and with Administrative Agent and each Lender that: 

        (a)   The
officer or authorized agent of GP LLC signing this instrument is the duly elected, qualified and acting officer or authorized agent of GP LLC as indicated below such
officer's or authorized agent's signature hereto having all necessary authority to act for the Borrower. 

        (b)   The
representations and warranties of each Restricted Person set forth in the Agreement and the other Loan Documents are true and correct on and as of the date hereof
(except to the extent that such representation or warranty was made as of a specific date, or updated, modified or supplemented as of a subsequent date with the consent of Majority Lenders, then in
each such case, such other date),
with the same effect as though such representations and warranties had been made on and as of the date hereof. 

        (c)   There
does not exist on the date hereof any condition or event which constitutes a Default which has not been waived in writing as provided in Section 10.1(a) of
the Agreement; nor will any such Default exist upon receipt and application of the Loans requested hereby. Borrower will use the Loans hereby requested in compliance with Section 2.4 of the
Agreement. 

        (d)   The
aggregate outstanding principal amount of the Loans, after the making of the Loans requested hereby, will not be in excess of the Commitment on the date requested
for the making of such Loans. 

        (e)   The
Loan Documents have not been modified, amended or supplemented by any Restricted Person pursuant to any unwritten representations or promises, by any course of
dealing, or by any other means not provided for in Section 10.1(a) of the Agreement. The Agreement and the other Loan Documents are hereby ratified, approved, and confirmed in all respects. 

        The
officer or authorized agent of GP LLC signing this instrument hereby certifies that, to the best of his knowledge after due inquiry, the above representations, warranties,
acknowledgments, and agreements of General Partner and Borrower are true, correct and complete in all material respects. 

1

 

        IN
WITNESS WHEREOF, this instrument is executed as of                        ,
            . 

	 	 	PLAINS ALL AMERICAN PIPELINE, L.P.
	

 	
 	

By:	

PLAINS AAP, L.P.,

its general partner
	

 	
 	

By:	

PLAINS ALL AMERICAN GP LLC

its general partner
	

 	
 	

By:	

 Name:

Title:

2

   
EXHIBIT C 

CONTINUATION/CONVERSION NOTICE  

        Reference is made to that certain Interim 364-Day Credit Agreement dated April 1, 2004 among Plains All American Pipeline, L.P. ("Borrower"),
Bank One, NA, as Administrative Agent, and certain financial institutions ("Lenders"). Terms which are defined in the Agreement are used herein with the meanings given them in the Agreement. 

        Borrower
hereby requests a conversion or continuation of existing Loans into a new Borrowing pursuant to Section 2.3 of the Agreement as follows: 

        Existing
Borrowing(s) of Loans to be Continued or Converted: 

	 	 	$                   of LIBOR Loans with Interest Period ending
            	 	 	 	 	 
	 	 	
 $                   of Base Rate Loans	
 	
 	

 	
 	

 
	 	
 Aggregate amount of new Borrowing:	
 	
$	

                          	
 	

 
	 	
 Type of Loans in new Borrowing:	
 	
 	

                          	
 	

 
	 	
 Date of Continuation or Conversion:	
 	
 	

                          	
 	

 
	 	
 Length of Interest Period for LIBOR Loans

(1, 2, 3, 6, or 9 months):	
 	
 	

             months	
 	

 

        General Partner hereby represents, warrants, acknowledges, and agrees to and with each Lender that: 

        (a)   The
officer or authorized agent of GP LLC signing this instrument is the duly elected, qualified and acting officer or authorized agent of GP LLC as indicated below such
officer's or authorized agent's signature hereto having all necessary authority to act for the Borrower. 

        (b)   There
does not exist on the date hereof any condition or event which constitutes a Default which has not been waived in writing as provided in Section 10.1(a) of
the Agreement; nor will any such Default exist upon receipt and application of the Loans requested hereby. 

        (c)   The
Loan Documents have not been modified, amended or supplemented by any Restricted Person pursuant to any unwritten representations or promises, by any course of
dealing, or by any other means not provided for in Section 10.1(a) of the Agreement. The Agreement and the other Loan Documents are hereby ratified, approved, and confirmed in all respects. 

        The
officer or authorized agent of GP LLC signing this instrument hereby certifies that, to the best of his knowledge after due inquiry, the above representations, warranties,
acknowledgments, and agreements of General Partner are true, correct and complete in all material respects. 

1

 

        IN
WITNESS WHEREOF, this instrument is executed as of                        ,
            . 

	 	 	PLAINS ALL AMERICAN PIPELINE, L.P.
	

 	
 	

By:	

PLAINS AAP, L.P.,

its general partner
	

 	
 	

By:	

PLAINS ALL AMERICAN GP LLC

its general partner
	

 	
 	

By:	

 
	

 	
 	

 	

 Name:

Title:

2

   
EXHIBIT D 

CERTIFICATE ACCOMPANYING FINANCIAL STATEMENTS  

        Reference is made to that certain Interim 364-Day Credit Agreement dated April 1, 2004 among Plains All American Pipeline, L.P. ("Borrower"),
Bank One, NA, as Administrative Agent, and certain financial institutions ("Lenders"). Terms which are defined in the Agreement are used herein with the meanings given them in the Agreement. 

        This
Certificate is furnished pursuant to Section 6.2(b) of the Agreement. Pursuant to Section 6.2, Borrower has furnished to Administrative Agent and each Lender
Borrower's [audited/unaudited] financial statements (the "Financial Statements") as at                        (the "Reporting
Date"). General Partner hereby represents, warrants, and
acknowledges to Administrative Agent and each Lender that: 

        (a)   the
officer of GP LLC signing this instrument is the duly elected, qualified and acting                        of GP LLC and as such
is GP LLC's [chief financial
officer/principal accounting officer]; 

        (b)   the
Financial Statements are accurate and complete in all material respects [(subject, in the case of such unaudited financial statements, to normal year end
adjustments)] and satisfy the requirements of the Agreement; 

        (c)   attached
hereto is a schedule of calculations showing Borrower's compliance as of the Reporting Date with the requirements of Sections 7.8 and 7.9 of the Agreement
[and Borrower's non-compliance as of such date with the requirements of Section(s)                        of the Agreement];

        (d)   no
Default existed on the Reporting Date or otherwise exists on the date of this instrument [except for Default(s) under Section(s)
                        of the
Agreement, which
[is/are] more fully described on a schedule attached hereto]. 

        The
officer of GP LLC signing this instrument hereby certifies that he/she has reviewed the Loan Documents and the Financial Statements and has otherwise undertaken such inquiry as is in
his/her opinion necessary to enable him/her to express an informed opinion with respect to the above representations, warranties and acknowledgments of General Partner and Borrower and, to the best of
his/her knowledge, such representations, warranties, and acknowledgments are true, correct and complete in all material respects. 

1

 

        IN
WITNESS WHEREOF, this instrument is executed as of                        , 200    . 

	 	 	PLAINS ALL AMERICAN PIPELINE, L.P.
	

 	
 	

By:	

PLAINS AAP, L.P.,

its general partner
	

 	
 	

By:	

PLAINS ALL AMERICAN GP LLC

its general partner
	

 	
 	

By:	

 
	

 	
 	

 	

 Name:

Title:

2

 
EXHIBIT
E-1 

OPINION OF IN-HOUSE COUNSEL TO RESTRICTED PERSONS  

3

 
EXHIBIT
E-2 

OPINION OF FULBRIGHT & JAWORSKI, L.L.P., COUNSEL TO RESTRICTED PERSONS  

4

 
EXHIBIT
E-3 

OPINION OF BENNETT JONES LLP, CANADIAN COUNSEL TO RESTRICTED PERSONS  

5

   
EXHIBIT F 

ASSIGNMENT AND ACCEPTANCE  

        Reference is made to that certain Interim 364-Day Credit Agreement dated as of April 1, 2004 (as from time to time amended, the "Agreement"),
by and among Plains All American Pipeline, L.P. ("Borrower"), Bank One, NA, as Administrative Agent, and certain financial institutions ("Lenders"). Terms which are defined in the Agreement are used
herein with the meanings given them in the Agreement. 

        The
"Assignor" and the "Assignee" referred to on Schedule 1 agree as follows: 

        1.     The
Assignor hereby sells and assigns to the Assignee, without recourse and without representation or warranty except as expressly set forth herein, and the Assignee
hereby purchases and assumes from the Assignor, an interest in and to the Assignor's rights and obligations under the Agreement and the other Loan Documents as of the date hereof equal to the
percentage interest specified on Schedule 1 of all outstanding rights and obligations under the Agreement and the other Loan Documents with respect to the Commitment and Loans. After giving
effect to such sale and assignment, the Assignee's Commitment and the amount of the Loans owing to the Assignee will be as set forth on Schedule 1. 

        2.     The
Assignor (i) represents and warrants that it is the legal and beneficial owner of the interest being assigned by it hereunder and that such interest is free
and clear of any adverse claim; (ii) makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection
with the Loan Documents or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any other instrument or document furnished pursuant thereto;
(iii) makes no representation or warranty and assumes no responsibility with respect to the financial condition of any Restricted Person or the performance or observance by any Restricted
Person of any of its obligations under the Loan Documents or any other instrument or document furnished pursuant thereto; and (iv) attaches the Note held by the Assignor and requests that
Administrative Agent exchange such Note for [a new Note payable to the order of the Assignee] [new Notes in an amount equal to the Commitment assumed by the
Assignee pursuant hereto and to the Assignor in an amount equal to the Commitment retained by the Assignor, if any], as specified on Schedule 1. 

        3.     The
Assignee (i) confirms that it has received a copy of the Agreement, together with copies of the financial statements referred to in Section 6.2 thereof
and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Acceptance; (ii) agrees that it will,
independently and without reliance upon Administrative Agent, the Assignor or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit decisions in taking or not taking action under the Agreement; (iii) confirms that it is an Eligible Transferee, (iv) appoints and authorizes Administrative Agent to take
such action as agent on its behalf and to exercise such powers and discretion under the Agreement as are delegated to Administrative Agent by the terms thereof, together with such powers and
discretion as are reasonably incidental thereto; (v) agrees that it will perform in accordance with their terms all of the obligations that by the terms of the Agreement are required to be
performed by it as a Lender; and (vi) attaches any U.S. Internal Revenue Service or other forms required under Section 10.5. 

        4.     Following
the execution of this Assignment and Acceptance, it will be delivered to Administrative Agent for acceptance and recording by Administrative Agent. The
effective date for this Assignment and Acceptance (the "Effective Date") shall be the date of acceptance hereof by Administrative Agent, unless
otherwise specified on Schedule 1. 

1

 

        5.     Upon
such acceptance and recording by Administrative Agent, as of the Effective Date, (i) the Assignee shall be a party to the Agreement and, to the extent
provided in this Assignment and Acceptance, have the rights and obligations of a Lender thereunder and (ii) the Assignor shall, to the extent provided in this Assignment and Acceptance,
relinquish its rights and be released from its obligations under the Agreement. 

        6.     Upon
such acceptance and recording by Administrative Agent, from and after the Effective Date, Administrative Agent shall make all payments under the Agreement and the
Notes in respect of the interest assigned hereby (including, without limitation, all payments of principal, interest and commitment fees with respect thereto) to the Assignee. The Assignor and
Assignee shall make all appropriate adjustments in payments under the Agreement and the Notes for periods prior to the Effective Date directly between themselves. 

        7.     This
Assignment and Acceptance shall be governed by, and construed in accordance with, the Laws of the State of New York. 

        8.     This
Assignment and Acceptance may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of Schedule 1 to this Assignment and
Acceptance by telecopier shall be effective as delivery of a manually executed counterpart of this Assignment and Acceptance. 

        IN
WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1 to this Assignment and Acceptance to be executed by their officers thereunto duly authorized as of the
date specified thereon. 

2

SCHEDULE 1 to ASSIGNMENT AND ACCEPTANCE 

	 	Assignee's Commitment:	 	$	            	 	 
	 	Assignee's Percentage Share:	 	 	              	%	 
	 	Aggregate outstanding principal amount of Loans assigned:	 	$	            	 	 
	 	Principal amount of Note payable to Assignee:	 	$	            	 	 
	 	Principal amount of Note payable to Assignor (if retained):	 	$	            	]	 
	Effective Date (if other than date of acceptance

by Administrative Agent:	 	*	            	 	, 200    

	 	 	[NAME OF ASSIGNOR], as Assignor
	

 	
 	

By:	

 
	

 	
 	

 	

 Title:
	

 	
 	

Dated:             , 200    
	

 	
 	

[NAME OF ASSIGNEE], as Assignee
	

 	

 	

By:	

 
	

 	
 	

 	

 Title:
	

 	
 	

Domestic Lending Office:

LIBOR Lending Office:

	*
	This
date should be no earlier than five Business Days after the delivery of this Assignment and Acceptance to Administrative Agent. 

Accepted
this            day of            , 200            

	BANK ONE, NA	 	 
	

By:	

 	
 	

 
	

 	

 Title:	
 	

 
	

[Approved this              day of             , 200    	
 	

 
	

[PLAINS ALL AMERICAN PIPELINE, L.P.	
 	

 
	By:	PLAINS AAP, L.P., its general partner	 	 
	By:	PLAINS ALL AMERICAN GP LLC, its general partner]	 	 
	

By:	

 	
 	

 
	

 	

 Name:

Title:	
 	

 

QuickLinks

Exhibit 10.1

INTERIM 364-DAY CREDIT AGREEMENT<Page>

                                                                    EXHIBIT 10.1

                                                                  EXECUTION COPY

                          USS RECEIVABLES COMPANY, LTD.

                    UNITED STATIONERS FINANCIAL SERVICES LLC,

                                  as Servicer,

                                FIFTH THIRD BANK,

                    as Administrator and Committed Purchaser,

                                       and

                              JPMORGAN CHASE BANK,

                                   as Trustee

                                   ----------

                            SERIES 2004-1 SUPPLEMENT

                           Dated as of March 26, 2004

                                       to

                           SECOND AMENDED AND RESTATED

                                POOLING AGREEMENT

                           Dated as of March 28, 2003

                                   ----------

                   UNITED STATIONERS RECEIVABLES MASTER TRUST

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                      PAGE
                                                                                      ----
<S>                                                                                     <C>
TABLE OF CONTENTS

ARTICLE I    DEFINITIONS.................................................................1

     SECTION 1.1    Definitions..........................................................1

ARTICLE II   DESIGNATION OF CERTIFICATES; PURCHASE AND SALE OF..........................20

     SECTION 2.1    Designation.........................................................21

     SECTION 2.2    The Series 2004-1 Interests.........................................21

     SECTION 2.3    Purchases of Interests in the VFC Certificates......................21

     SECTION 2.4    Delivery............................................................22

     SECTION 2.5    Procedure for Initial Issuance and for Increasing the Series
                    2004-1 Invested Amount..............................................22

     SECTION 2.6    [Reserved]..........................................................24

     SECTION 2.7    Procedure for Decreasing the Series 2004-1 Invested Amount;
                    Optional Termination................................................24

     SECTION 2.8    Reduction of the Purchase Limit.....................................25

     SECTION 2.9    Interest, Fees......................................................25

     SECTION 2.10   Indemnification by the Company and the Servicer.....................26

ARTICLE III  ARTICLE III OF THE AGREEMENT...............................................29

ARTICLE IV   DISTRIBUTIONS AND REPORTS..................................................33

ARTICLE V    ADDITIONAL EARLY AMORTIZATION EVENTS.......................................34

     SECTION 5.1    Additional Early Amortization Events................................34

ARTICLE VI   SERVICING FEE..............................................................38

     SECTION 6.1    Servicing Compensation..............................................38

ARTICLE VII  CHANGE IN CIRCUMSTANCES....................................................38

     SECTION 7.1    Illegality..........................................................38

     SECTION 7.2    Increased Costs.....................................................38

     SECTION 7.3    Taxes...............................................................39

     SECTION 7.4    Break Funding Payments..............................................41

     SECTION 7.5    Mitigation Obligations..............................................41

ARTICLE VIII REPRESENTATIONS AND WARRANTIES, COVENANTS..................................42
</Table>

                                       -i-
<Page>

                                TABLE OF CONTENTS
                                   (continued)

<Table>
<Caption>
                                                                                      PAGE
                                                                                      ----
<S>                                                                                     <C>
     SECTION 8.1    Representations and Warranties of the Company and the Servicer......42

     SECTION 8.2    Covenants of the Company and the Servicer...........................42

     SECTION 8.3    Covenants of the Servicer...........................................43

     SECTION 8.4    Obligations Unaffected..............................................43

ARTICLE IX   CONDITIONS PRECEDENT.......................................................44

     SECTION 9.1    Conditions Precedent to Effectiveness of Supplement.................44

ARTICLE X    [RESERVED].................................................................47

ARTICLE XI   MISCELLANEOUS..............................................................47

     SECTION 11.1   Ratification of Agreement...........................................47

     SECTION 11.2   GOVERNING LAW.......................................................47

     SECTION 11.3   Further Assurances..................................................48

     SECTION 11.4   Payments............................................................48

     SECTION 11.5   Costs and Expenses..................................................48

     SECTION 11.6   No Waiver, Cumulative Remedies......................................48

     SECTION 11.7   Amendments..........................................................49

     SECTION 11.8   Severability........................................................50

     SECTION 11.9   Notices.............................................................50

     SECTION 11.10  Successors and Assigns..............................................51

     SECTION 11.11  Securities Laws; Assignments........................................51

     SECTION 11.12  [Reserved]..........................................................52

     SECTION 11.13  Counterparts........................................................52

     SECTION 11.14  No Bankruptcy Petition..............................................52

     SECTION 11.15  Committed Purchaser's Liabilities...................................53

     SECTION 11.16  Recourse to the Company.............................................53
</Table>

                                      -ii-
<Page>

EXHIBITS

Exhibit A         VFC Certificate, Series 2004-1
Exhibit B         Form of [Assignment] [Participation] Certification
Exhibit C         Form of Notice of Increase
Exhibit D         Form of Monthly Settlement Statement
Exhibit E         Form of Commitment Transfer Supplement

SCHEDULES

Schedule 1        Commitments

<Page>

          SERIES 2004-1 SUPPLEMENT, dated as of March 26, 2004 (as amended,
supplemented or otherwise modified from time to time, this ("SUPPLEMENT"), among
USS Receivables Company, Ltd., a Cayman Islands limited liability company (the
"COMPANY"), United Stationers Financial Services LLC ("USFS"), as servicer
(except where otherwise noted) (in such capacity, the "SERVICER"), Fifth Third
Bank (Chicago), a national banking association ("FIFTH THIRD" and, including its
successors and assigns, the "COMMITTED PURCHASER" and, in its capacity as
administrator for the Fifth Third Conduit Program, the "ADMINISTRATOR"), and
JPMorgan Chase Bank, in its capacity as Trustee (the "TRUSTEE") under the
Agreement (as defined below).

                              W I T N E S S E T H:
                               - - - - - - - - - -

          WHEREAS, the Company, the Servicer and the Trustee (formerly known as
Bank One, NA) have entered into a Second Amended and Restated Pooling Agreement,
dated as of March 28, 2003 (as amended, supplemented or otherwise modified from
time to time, the "AGREEMENT"; capitalized terms used herein and not otherwise
defined are used as defined in the Agreement);

          WHEREAS, the Agreement provides, among other things, that the Company,
the Servicer and the Trustee may at any time and from time to time enter into
supplements to the Agreement for the purpose of authorizing the issuance on
behalf of the Trust by the Company for execution and redelivery to the Trustee
for authentication of one or more Series of Investor Certificates; and

          WHEREAS, the Company, the Servicer, the Trustee, the Committed
Purchaser and the Administrator wish to supplement the Agreement as hereinafter
set forth.

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

                                    ARTICLE I

                                   DEFINITIONS

          SECTION 1.1 DEFINITIONS. (a) The following words and phrases shall
have the following meanings with respect to Series 2004-1 and the definitions of
such terms are applicable to the singular as well as the plural form of such
terms and to the masculine as well as the feminine and neuter genders of such
terms:

          "ACCRUAL PERIOD" shall mean the period from and including a
Distribution Date, or, in the case of the initial Accrual Period, the Issuance
Date, to but excluding the succeeding Distribution Date.

<Page>

          "ACCRUED EXPENSE AMOUNT" shall mean, for each Business Day during an
Accrual Period, the sum of (i) the Daily Interest Deposit for such Business Day,
(ii) the Daily Commitment Fee Deposit for such Business Day, (iii) the Daily
Utilization Fee Deposit for such Business Day, (iv) the Daily Servicing Fee
Deposit for such Business Day and (v) all Program Costs which have accrued since
the preceding Business Day.

          "ADDITIONAL INTEREST" shall have the meaning assigned in subsection
3A.4(c).

          "ADMINISTRATOR" shall have the meaning specified in the introductory
paragraph hereto.

          "AFFECTED PARTY" means any of the Committed Purchaser, any Liquidity
Purchaser, the Administrator, any other Program Support Provider and their
respective Affiliates.

          "AGENT" shall mean, for purposes of this Supplement and the Agreement,
the Administrator.

          "AGGREGATE COMMITMENT AMOUNT" for purposes of any calculation under
any Transaction Document referring to the "Commitment" amount under this
Supplement, shall mean the Purchase Limit.

          "ALLOCATED RECEIVABLES AMOUNT" shall mean the Series 2004-1 Allocated
Receivables Amount.

          "ALTERNATE RATE" shall mean, for any Rate Period for any Funding
Tranche, an interest rate PER ANNUM equal to: (a) the Applicable Margin PER
ANNUM plus the Euro-Rate for such Rate Period, or, in the sole discretion of the
Administrator (b) the Base Rate for such Rate Period as determined each day in
such Rate Period; PROVIDED, HOWEVER, that the "Alternate Rate" for any day while
an Early Amortization Event exists shall be an interest rate equal to 2.00% per
annum above the Base Rate in effect on such day.

          "APPLICABLE MARGIN" shall mean on any date of determination, for each
Eurodollar Tranche, the sum of (i) the "Applicable Margin" (as defined in the
Credit Agreement) then in effect for "Eurodollar Advances" (as defined in the
Credit Agreement), plus (ii) .25% per annum.

          "ASSIGNMENT/PARTICIPATION CERTIFICATION" shall mean an assignment or
participation certification, as the case may be, in substantially the form of
Exhibit B hereto.

          "BASE RATE" shall mean, for any day, a fluctuating interest rate per
annum as shall be in effect from time to time, which rate shall be at all times
equal to the higher:

          (a) the rate of interest in effect for such day as publicly announced
from time to time by Fifth Third in Cincinnati, Ohio as its "prime rate." Such
"prime rate" is set by Fifth Third based upon various factors, including Fifth
Third's costs and desired return, general

                                        2
<Page>

economic conditions and other factors, and is used as a reference point for
pricing some loans, which may be priced at, above or below such announced rate,
and

          (b)  0.50% per annum above the latest Federal Funds Rate.

          "BOARD" shall mean the Board of Governors of the Federal Reserve
System of the United States.

          "CAPITALIZED LEASE OBLIGATIONS" of a Person means the amount of the
obligations of such Person under Capitalized Leases which would be shown as a
liability on a balance sheet of such Person prepared in accordance with
Agreement Accounting Principles.

          "CHANGE IN LAW" shall mean (a) the adoption of any law, rule or
regulation after the Issuance Date, (b) any change in law, rule or regulation or
in the interpretation or application thereof by any Governmental Authority after
the Issuance Date, (c) compliance by any Person with any request, guideline or
directive (whether or not having the force of law) of any Governmental Authority
made or issued after the Issuance Date or (d) any adoption of any generally
accepted accounting standard or any change therein or in the interpretation or
application thereof.

          "CLAIM" shall have the meaning assigned in subsection 2.10(a).

          "COMMERCIAL PAPER" shall mean the promissory notes issued or to be
issued by the Fifth Third Conduit Program in the commercial paper market.

          "COMMITMENT EXPIRY DATE" shall mean March 25, 2005 (as may be extended
for an additional 364 days from time to time in writing by the Committed
Purchaser and the Administrator in their sole discretion).

          "COMMITMENT FEE" shall have the meaning assigned in subsection 2.9(b).

          "COMMITMENT FEE RATE" shall have the meaning assigned in the Fee
Letter.

          "COMMITMENT PERIOD" shall mean the period commencing on the Issuance
Date and terminating on the Commitment Termination Date.

          "COMMITMENT TERMINATION DATE" shall mean the earlier to occur of (i)
the date on which the Purchase Limit has been reduced to zero pursuant to
Section 2.8 of this Supplement, and (ii) the Commitment Expiry Date.

          "COMMITMENT TRANSFER SUPPLEMENT" shall have the meaning assigned in
subsection 11.11(b).

          "COMPANY" shall have the meaning specified in the introductory
paragraph hereto.

                                        3
<Page>

          "COMMITTED PURCHASER" shall have the meaning specified in the
introductory paragraph hereto.

          "CONSOLIDATED CAPITAL EXPENDITURES" shall mean for USI and its
Subsidiaries (other than TOPCO), with reference to any period, calculated on a
consolidated basis for such period and without duplication, any expenditures for
any purchase or other acquisition of any asset which would be classified as a
fixed or capital asset on a consolidated balance sheet of USI and its
Subsidiaries prepared in accordance with GAAP, excluding (i) expenditures of
insurance proceeds to rebuild or replace any asset after a casualty loss, (ii)
leasehold improvement expenditures for which USI or a Subsidiary is reimbursed
by the lessor, sublessor or sublessee, (iii) expenditures of Net Cash Proceeds
of any asset sale permitted under Section 6.12 of the Credit Agreement, and (iv)
with respect to any Permitted Acquisition, (a) the Purchase Price thereof and
(b) any Capital Expenditures expended by the seller or entity to be acquired in
any Permitted Acquisition prior to the date of such Permitted Acquisition and
not in contemplation of such Permitted Acquisition.

          "CONSOLIDATED EBITDA" means, with respect to any period, Consolidated
Net Income for such period plus, to the extent deducted from revenues in
determining Consolidated Net Income for such period, (i) Consolidated Interest
Expense, (ii) expense for taxes paid or accrued, (iii) depreciation, (iv)
amortization, (v) losses attributable to equity in Affiliates, (vi) non-cash
charges related to employee compensation and (vii) any extraordinary non-cash or
nonrecurring non-cash charges or losses incurred other than in the ordinary
course of business, minus, to the extent included in Consolidated Net Income for
such period, any extraordinary non-cash or nonrecurring non-cash gains realized
other than in the ordinary course of business, all calculated for USI and its
Subsidiaries (other than TOPCO) on a consolidated basis.

          "CONSOLIDATED FUNDED INDEBTEDNESS" means, at any time, with respect to
any Person, without duplication, the sum of (i) the aggregate dollar amount of
Consolidated Indebtedness for borrowed money owing by such Person or for which
such Person is liable which has actually been funded and is outstanding at such
time, whether or not such amount is due or payable at such time, plus (ii) the
aggregate undrawn amount of all standby letters of credit at such time for which
such Person or any of its Subsidiaries is the account party or is otherwise
liable (other than standby letters of credit in an amount up to $10,000,000
issued to support worker's compensation obligations of the Credit Parties (as
defined in the Credit Agreement) and other than letters of credit supporting any
other component of this definition), plus (iii) the aggregate principal
component of Capitalized Lease Obligations owing by such Person and its
Subsidiaries on a consolidated basis or for which such Person or any of its
Subsidiaries is otherwise liable, plus (iv) all Off-Balance Sheet Liabilities of
such Person and its Subsidiaries on a consolidated basis, plus (v) all
Disqualified Stock of such Person and its Subsidiaries on a consolidated basis.

          "CONSOLIDATED INDEBTEDNESS" means at any time, with respect to any
Person, the Indebtedness of such Person and its Subsidiaries calculated on a
consolidated basis as of such time.

                                        4
<Page>

          "CONSOLIDATED INTEREST EXPENSE" means, with reference to any period,
the interest expense of USI and its Subsidiaries calculated on a consolidated
basis for such period (net of interest income), including, without limitation,
yield or any other financing costs resembling interest which are payable under
any Receivables Purchase Facility.

          "CONSOLIDATED NET INCOME" means, with reference to any period, the net
income (or loss) of USI and its Subsidiaries (other than TOPCO) calculated on a
consolidated basis for such period and on a FIFO basis of inventory valuation.

          "CONSOLIDATED NET WORTH" means at any time, with respect to any
Person, the consolidated stockholders' equity of such Person and its
Subsidiaries calculated on a consolidated basis and on a FIFO basis of inventory
valuation as of such time.

          "CONSOLIDATED RENTALS" means, with reference to any period, the rental
expense (net of rental income) of USI and its Subsidiaries in respect of
Operating Leases, but excluding rental expense for any extension thereof for a
period shorter than twelve months, calculated on a consolidated basis for such
period; provided that rental expense in respect of all non-real property rentals
shall be the amount as set forth on the compliance certificate most recently
delivered to the Administrator under the Credit Agreement pursuant to Section
6.1.3 of the Credit Agreement in connection with the most recent annual
financial statements of USI delivered pursuant to Section 6.1.1 of the Credit
Agreement (and for the period prior to the delivery of the first such compliance
certificate, the amount set forth on the compliance certificate delivered
pursuant to Section 4.1.5 of the Credit Agreement).

          "CONTROLLED GROUP" shall mean all members of a controlled group of
corporations or other business entities and all trades or businesses (whether or
not incorporated) under common control which, together with USI or any of its
Subsidiaries, are treated as a single employer under Section 414(b) or (c) of
the Internal Revenue Code.

          "CP RATE" for any Rate Period for any Funding Tranche means a rate
calculated in good faith by the Administrator equal to: (a) the rate (or if more
than one rate, the weighted average of the rates) at which Commercial Paper of
the Fifth Third Conduit Program on each day during the related Accrual Period
have been outstanding; PROVIDED, that if such rate(s) is (are) a discount
rate(s), then the CP Rate shall be the rate (or if more than one rate, the
weighted average of the rates) resulting from converting such discount rate(s)
to an interest-bearing equivalent rate plus (b) the commissions and charges
charged by such placement agent or commercial paper dealer with respect to such
Commercial Paper, expressed as a percentage of the face amount of such
Commercial Paper and converted to an interest-bearing equivalent rate per annum.
Notwithstanding the foregoing, the "CP Rate" for any day while an Early
Amortization Event exists shall be an interest rate equal to 2% above the Base
Rate in effect on such day. In lieu of the foregoing, if the Company shall
request any Increase (i) during any period of time determined by the
Administrator in its sole discretion to result in an incrementally higher CP
Rate applicable to such Increase or (ii) for which the Company requests a
specific maturity of Commercial Paper, and as to which Rate Period the
Administrator approves in its sole discretion,

                                        5
<Page>

that shall result in a CP Rate related solely to such Commercial Paper, the
Series 2004-1 Invested Amount associated with any such Increase shall, during
such period, be deemed to be funded by the Fifth Third Conduit Program in a
special Funding Tranche (which may include capital associated with other
receivable purchase facilities) for purposes of determining such CP Rate
applicable only to such special pool and charged each day during such period
against such Series 2004-1 Invested Amount, provided that, during the term of
this Supplement, there may be only one special Funding Tranche outstanding at
any one time.

          "CP TRANCHE" shall mean a Funding Tranche that accrues interest at the
CP Rate.

          "DAILY COMMITMENT FEE DEPOSIT" shall mean, for any Business Day, an
amount equal to (i) the amount of Daily Commitment Fee Expense for each day
since the preceding Business Day plus (ii) the aggregate amount of all
previously accrued Daily Commitment Fee Expense that has not yet been deposited
in the Series 2004-1 Collection Sub-account.

          "DAILY COMMITMENT FEE EXPENSE" shall mean, (i) during the Series
2004-1 Revolving Period, for any day in any Accrual Period, the product of (A)
the excess of 102% of the Purchase Limit over the Series 2004-1 Purchaser
Invested Amount of the Committed Purchaser on such day multiplied by (B) the
Commitment Fee Rate divided by 360.

          "DAILY INTEREST DEPOSIT" shall mean, for any Business Day, an amount
equal to (i) the amount of Daily Interest Expense for each day since the
preceding Business Day PLUS (ii) the aggregate amount of a previously accrued
Daily Interest Expense that has not yet been deposited in the Series 2004-1
Collection Sub-account PLUS (iii) the aggregate amount of all Additional
Interest for each day since the preceding Business Day.

          "DAILY INTEREST EXPENSE" shall mean for each day in an Accrual Period,
the sum of: (i) for each CP Tranche outstanding on such day, the product of (A)
the portion of the Series 2004-1 Funded Amount allocated to such Funding Tranche
on such day and (B) the "estimated CP Rate" (which shall be the CP Rate in
effect for the preceding Accrual Period (or, in the case of the initial Accrual
Period, the CP Rate specified by the Administrator by notice to the Servicer on
or prior to the Closing Date)/360) PLUS (ii) for each Floating Tranche
outstanding on such day, the product of (A) the portion of the Series 2004-1
Funded Amount allocated to such Floating Tranche on such day and (B) the Base
Rate in effect on such day (or, if such day is after the delivery of the
calculation of Series 2004-1 Monthly Interest to the Servicer for any Accrual
Period, the Base Rate in effect on the date of such delivery)/365 or 366, as
applicable, PLUS (iii) for each Eurodollar Tranche outstanding on such day, the
product of (A) the portion of the Series 2004-1 Funded Amount allocable to such
Eurodollar Tranche on such day and (y) the Euro-Rate in effect for such Accrual
Period/360.

          "DAILY SERVICING FEE DEPOSIT" shall mean, for any Business Day, an
amount equal to (i) the amount of Daily Servicing Fee Expense for each day since
the preceding Business Day PLUS (ii) the aggregate amount of all previously
accrued Daily Servicing Fee Expense that has not yet been deposited in the
Series 2004-1 Collection Sub-account.

                                        6
<Page>

          "DAILY SERVICING FEE EXPENSE" shall mean, for any day in any Accrual
Period the Series 2004-1 Interests' PRO RATA portion (determined in accordance
with Section 6.1) of the Servicing Fee accruing for such day.

          "DAILY UTILIZATION FEE DEPOSIT" shall mean, for any day in an Accrual
Period, an amount equal to (i) the amount of Daily Utilization Fee Expense for
each day since the preceding Business Day PLUS (ii) the aggregate amount of all
previously accrued Daily Utilization Fee Expense that has not yet been deposited
in the Series 2004-1 Collection Sub-account.

          "DAILY UTILIZATION FEE EXPENSE" shall mean for any day in any Accrual
Period, the product of (A) the Series 2004-1 Funded Amount on such day
multiplied by (B) the Utilization Fee Rate divided by 360 and (ii) for any day
thereafter, zero.

          "DECREASE" shall have the meaning assigned in subsection 2.7(a).

          "DEFAULT FEE" shall mean, for any day occurring after the occurrence
of an Early Amortization Event described in Section 5.1(a) (after giving effect
to any grace period set forth in such Section)to but excluding the day on which
such Early Amortization Event is cured or waived in accordance with the terms
hereof, an amount equal to the product of (x) the Base Rate plus 2%, multiplied
by (y) the aggregate of all amounts outstanding hereunder and payable by the
Company or the Servicer, divided by (z) 365 (or 366, as the case may be).

          "DEFAULT RATIO" shall mean, as of the last day of any Accrual Period,
a ratio (expressed as a percentage) equal to the quotient of (a) the sum of,
without duplication, (i) the aggregate outstanding Principal Amount of all
Receivables which are unpaid in whole or in part for more than 60 days but less
than 91 days after their respective due dates on such day and (ii) the aggregate
amount of Receivables that became Charged-Off Receivables during such Accrual
Period; and (b) the aggregate sales of the Sellers during the Accrual Period
that ended three months prior to such Accrual Period.

          "DELINQUENCY RATIO" shall mean, as of the last day of any Accrual
Period, a ratio (expressed as a percentage) equal to the quotient of (a) the sum
of (i) the aggregate outstanding Principal Amount of all Receivables which are
unpaid in whole or in part for more than 60 days after their respective due
dates on such day and (ii) the aggregate outstanding Principal Amount of all
Disputed Receivables on such day, divided by (b) the aggregate outstanding
Principal Amount of all Receivables on such day.

          "DILUTION HORIZON RATIO" shall mean, as of the last day of any
calendar month, a ratio equal to (i) the aggregate gross sales of the Sellers
during the calendar month then most recently ended divided by (ii) the Aggregate
Receivables Amount plus the Aggregate Overconcentration Amount.

          "DILUTION PERCENTAGE" shall mean as of the last day of any calendar
month, a percentage equal to:

                                        7
<Page>

               [[2.0 x ED] + [(DS - ED) x DS DIVIDED BY ED]] x DHR

          where:

          ED        =    the Expected Dilution Ratio at such time

          DS        =    the Dilution Spike Ratio at such time

          DHR       =    the Dilution Horizon Ratio at such time

          "DILUTION SPIKE RATIO" shall mean, as of the last day of any calendar
month, the highest monthly Dilution Ratio calculated as of the last day of each
of the twelve calendar months then most recently ended.

          "DILUTION RATIO" shall mean, as of the last day of each Accrual
Period, an amount (expressed as a percentage) equal to (i) the aggregate amount
of Dilution Adjustments (excluding the sum of all VCD rebates related to any
Receivable) made during such Accrual Period, divided by (ii) the aggregate gross
sales of the Sellers during such Accrual Period.

          "DILUTION RESERVE" shall mean, on any date, an amount equal to the
Dilution Percentage multiplied by the Aggregate Receivables Amount as of the
close of business of the Servicer on such date.

          "DISCOUNT" shall mean for each Rate Period and each Funding Tranche:

          (a) for any Funding Tranche for any Rate Period to the extent the
Committed Purchaser will be funding such Funding Tranche during such Rate Period
through the issuance of Commercial Paper:

          CPR x C x ED/360

          (b) for any Funding Tranche for any Rate Period to the extent the
Committed Purchaser will not be funding such Funding Tranche during such Rate
Period through the issuance of Commercial Paper:

          AR x C x ED/Year

          where:

          AR        =    the Alternate Rate for the Funding Tranche for such
                         Rate Period,

          C         =    the Series 2004-1 Funded Amount allocated to the
                         Funding Tranche during such Rate Period,

          CPR       =    the weighted average CP Rate for the Funding Tranche
                         for such Rate Period,

                                        8
<Page>

          ED        =    the actual number of days on which such Funding Tranche
                         remained outstanding during such Rate Period, and

          Year      =    if such Funding Tranche is funded based upon: (i) the
                         Euro-Rate, 360 days, and (ii) the Base Rate, 365 or 366
                         days, as applicable;

          PROVIDED, that no provision of this Supplement shall require the
payment or permit the collection of Discount in excess of the maximum permitted
by applicable law; and PROVIDED FURTHER, that Discount for the Funding Tranche
shall not be considered paid by any distribution to the extent that at any time
all or a portion of such distribution is rescinded or must otherwise be returned
for any reason.

          "EARLY AMORTIZATION EVENT" shall have the meanings assigned in Section
5.1 of this Supplement and Section 7.1 of the Agreement.

          "EARLY AMORTIZATION PERIOD" shall have the meaning assigned in Section
5.1 of this Supplement and Section 7.1 of the Agreement.

          "EFFECTIVE DATE" shall have the meaning assigned in Section 9.1.

          "EURO-RATE" shall mean with respect to any Rate Period, the interest
rate per annum determined by the Administrator by dividing (the resulting
quotient rounded upwards, if necessary, to the nearest 1/100th of 1% per annum)
(i) the rate of interest determined by the Administrator in accordance with its
usual procedures (which determination shall be conclusive absent manifest error)
to be the average of the London interbank market offered rates for U.S. dollars
quoted by the British Bankers' Association ("BBA") as set forth on Dow Jones
Markets Service (formerly known as Telerate) (or appropriate successor or, if
BBA or its successor ceases to provide display page 3750 (or such other display
page on the Dow Jones Markets Service system as may replace display page 3750)
at or about 11:00 a.m. (London time) on the Business Day which is two (2)
Business Days prior to the first day of such Rate Period for an amount
comparable to the Funding Tranche to be funded at the Alternate Rate and based
upon the Euro-Rate during such Rate Period by (ii) a number equal to 1.00 minus
the Euro-Rate Reserve Percentage. The Euro-Rate may also be expressed by the
following formula:

                      Average of London interbank offered rates quoted by BBA
                      as shown on Dow Jones Markets Service display page 3750
                      or appropriate successor
          Euro-Rate = ----------------------------------------------------------
                      1.00 - Euro-Rate Reserve Percentage

where "Euro-Rate Reserve Percentage" means, the maximum effective percentage in
effect on such day as prescribed by the Board (or any successor) for determining
the reserve requirements (including without limitation, supplemental, marginal,
and emergency reserve requirements) with respect to eurocurrency funding
(currently referred to as "Eurocurrency Liabilities"). The Euro-

                                        9
<Page>

Rate shall be adjusted with respect to any Funding Tranche funded at the
Alternate Rate and based upon the Euro-Rate that is outstanding on the effective
date of any change in the Euro-Rate Reserve Percentage as of such effective
date. The Administrator shall give prompt notice to the Servicer of the
Euro-Rate as determined or adjusted in accordance herewith (which determination
shall be conclusive absent manifest error).

          "EURODOLLAR TRANCHE" shall mean each Funding Tranche that accrues
interest at the Euro-Rate.

          "EXCLUDED TAXES" shall mean, with respect to the Administrator, any
Purchaser or any other recipient of any payment to be made by or on account of
any increased obligation of the Company hereunder, (a) income or franchise taxes
imposed on (or measured by) its net income (i) by the United States of America,
or (ii) by the jurisdiction under the laws of which such recipient is organized
or in which its principal office is located, managed or controlled, or, in the
case of any Alternate Investor, in which its applicable lending office is
located, or (iii) by reason of any connection between the jurisdiction imposing
such tax and the Administrator, such recipient or such office other than a
connection arising solely from this Supplement or any other Transaction Document
or any transaction hereunder or thereunder, and (b) any branch profits imposed
by the United States of America or any similar tax imposed by any other
jurisdiction in which the Company is located.

          "EXPECTED DILUTION RATIO" shall mean, as of the last day of any
calendar month, the average Dilution Ratio in respect of the twelve months then
most recently ended.

          "FACILITY TERMINATION DATE" shall mean the earliest to occur of: (a)
the Commitment Termination Date, (b) the date on which the Early Amortization
Period is declared to commence or automatically commences, (c) the Optional
Termination Date, (d) the date on which the commitment of the Liquidity
Purchasers terminates under the Liquidity Agreement and (e) the Company's
failure to cause the amendment or modification of any Transaction Document or
related opinion as required by Moody's or Standard & Poor's, which failure shall
continue for 30 days after such amendment is initially proposed.

                  "FEDERAL FUNDS RATE" shall mean, for any day, the per annum
rate set forth in the weekly statistical release designated as H.15(519), or any
successor publication, published by the Board (including any such successor,
"H.15(519)") for such day opposite the caption "Federal Funds (Effective)." If
on any relevant day such rate is not yet published in H.15(519), the rate for
such day will be the rate set forth in the daily statistical release designated
as the Composite 3:30 p.m. Quotations for U.S. Government Securities, or any
successor publication, published by the Federal Reserve Bank of New York
(including any such successor, the "Composite 3:30 p.m. Quotations") for such
day under the caption "Federal Funds Effective Rate." If on any relevant day the
appropriate rate is not yet published in either H.15(519) or the Composite 3:30
p.m. Quotations, the rate for such day will be the arithmetic mean as determined
by the Administrator of the rates for the last transaction in overnight Federal
funds arranged before 9:00 a.m. (New York time) on that day by each of three
leading brokers of Federal funds transactions in New York City selected by the
Administrator.

                                       10
<Page>

          "FEE LETTER" shall mean, the Fee Letter, dated as of the date hereof,
among the Company, the Administrator and the Committed Purchaser.

          "FIFTH THIRD CONDUIT PROGRAM" shall mean Fountain Square Commercial
Funding Corp. or any successor conduit program administered by the Committed
Purchaser.

          "FINANCING" shall mean, with respect to any Person, the issuance,
assumption, incurrence or sale by such Person of any Indebtedness (other than
Indebtedness described in Section 6.14.1 through 6.14.10 of the Credit
Agreement, any Indebtedness incurred under Section 6.14.11 of the Credit
Agreement and described in clauses (a) or (b) of the first parenthetical
thereof, and any Indebtedness incurred under Section 6.14.12 of the Credit
Agreement and described in the first parenthetical thereof).

          "FIXED CHARGE COVERAGE RATIO" shall mean, with respect to any fiscal
quarter of USI for the then most recently ended four fiscal quarters, the ratio
of (i) Consolidated EBITDA during such period plus Consolidated Rentals during
such period minus Consolidated Capital Expenditures during such period (provided
that Capitalized Lease Obligations shall be deducted only to the extent of
payments actually made during such period) to (ii) Consolidated Interest Expense
paid in cash during such period plus scheduled amortization of the principal
portion of Consolidated Indebtedness during such period (other than (i) amounts
owing in connection with Receivables Purchase Facilities permitted under the
Credit Agreement and (ii) scheduled term loan payments under the Existing Credit
Agreement and scheduled principal payments in respect of any industrial
development/revenue bonds of USI or any of its Subsidiaries in each case paid
prior to March 21, 2003) plus Consolidated Rentals for such period plus income
taxes paid in cash during such period plus all dividends and distributions paid
by USI during such period (other than the "Permitted Share Repurchase Amount"
for such period), all calculated for USI and its Subsidiaries (other than TOPCO)
on a consolidated basis; provided that the Fixed Charge Coverage Ratio shall be
calculated, with respect to Permitted Acquisitions, on a pro forma basis
reasonably satisfactory to the Administrator under the Credit Agreement, broken
down by fiscal quarter in USI's reasonable judgment.

          "FLOATING TRANCHE" shall mean, a Funding Tranche that accrues interest
at the Base Rate.

          "FUNDING TRANCHE" shall have the meaning assigned in subsection
3A.4(a).

          "INCREASE" shall have the meaning assigned in subsection 2.5(a).

          "INCREASE AMOUNT" shall have the meaning assigned in subsection
2.5(a).

          "INCREASE DATE" shall have the meaning assigned in subsection 2.5(a).

          "INDEMNIFIED TAXES" shall mean Taxes other than Excluded Taxes.

                                       11
<Page>

          "INITIAL SERIES 2004-1 INVESTED AMOUNT" shall have the meaning
assigned in subsection 2.5(a).

          "INTEREST SHORTFALL" shall have the meaning assigned in subsection
3A.4(c).

          "INVESTED PERCENTAGE" shall mean, with respect to any Business Day (i)
during the Series 2004-1 Revolving Period, the percentage equivalent of a
fraction, the numerator of which is the Series 2004-1 Invested Amount as of the
end of the immediately preceding Business Day and the denominator of which is
the difference between (x) the Aggregate Receivables Amount with respect to such
Business Day and (y) the Aggregate Target Receivables Amount with respect to
such Business Day and (ii) during the Series 2004-1 Amortization Period, the
percentage equivalent of a fraction, the numerator of which is the Series 2004-1
Invested Amount as of the end of the last Business Day of the Series 2004-1
Revolving Period and the denominator of which is the difference between (x) the
Aggregate Receivables Amount with respect to such Business Day and (y) Aggregate
Target Receivables Amount with respect to such Business Day.

          "ISSUANCE DATE" shall have the meaning assigned in subsection 2.5(a).

          "LEVERAGE RATIO" shall mean, the ratio of (i) Consolidated Funded
Indebtedness to (ii) Consolidated EBITDA for the then most-recently ended four
fiscal quarters. The Leverage Ratio shall be calculated as of the last day of
each fiscal quarter of USI based upon (a) for Consolidated Funded Indebtedness,
Consolidated Funded Indebtedness as of the last day of each such fiscal quarter
and (b) for Consolidated EBITDA, the actual amount as of the last day of each
fiscal quarter for the most recently ended four consecutive fiscal quarters;
provided that the Leverage Ratio shall be calculated, with respect to Permitted
Acquisitions, on a pro forma basis reasonably satisfactory to the administrative
agent under the Credit Agreement, broken down by fiscal quarter in USI's
reasonable judgment.

          "LIQUIDITY AGREEMENT" shall mean a liquidity agreement, if any,
entered into after the date hereof between the Liquidity Purchasers from time to
time party thereto, the Committed Purchaser and Fifth Third, as Administrator
and liquidity agent for the Liquidity Purchasers, as the same may be amended,
supplemented or otherwise modified from time to time.

          "LIQUIDITY PURCHASER" shall mean each bank or other institutions party
to the Liquidity Agreement, if any.

          "LOSS HORIZON RATIO" shall mean, as of any date, a ratio equal to (i)
the aggregate gross sales of the Sellers during the three most recently ended
calendar months divided by (ii) the Aggregate Receivables Amount as of such
date, plus the Aggregate Overconcentration Amount as of such date.

          "LOSS PERCENTAGE" shall mean, at any time, a percentage equal to the
greater of (i) 2.00 multiplied by the Loss Ratio multiplied by the Loss Horizon
Ratio and (ii) the Loss Reserve Floor.

                                       12
<Page>

          "LOSS RATIO" shall mean, on any date, the greatest three-month average
Default Ratio as calculated for each of the twelve most recently ended calendar
months.

          "LOSS RESERVE" shall mean, on any date, an amount equal to the Loss
Percentage multiplied by the Aggregate Receivables Amount as of the close of
business of the Servicer on such date.

          "LOSS RESERVE FLOOR" shall mean 10%.

          "MONTHLY INTEREST PAYMENT" shall have the meaning assigned in
subsection 3A.6(a).

          "MULTIEMPLOYER PLAN" shall mean a multiemployer plan, as defined in
Section 4001(a)(3) of ERISA, which is covered by Title IV of ERISA and to which
USI or any member of the Controlled Group is obligated to make contributions.

          "NET CASH PROCEEDS" means, with respect to any sale of property or any
Financing by any Person, (a) cash (freely convertible into Dollars) received by
such Person or any Subsidiary of such Person from such sale of property or
Financing, after (i) provision for all income or other taxes measured by or
resulting from such sale of property, (ii) payment of all reasonable brokerage
commissions and other fees and expenses related to such sale of property or
Financing, and (iii) all amounts used to repay Indebtedness secured by a Lien on
any asset disposed of in such sale of property which is or may be required (by
the express terms of the instrument governing such Indebtedness or by the
purchaser of such property) to be repaid in connection with such sale of
property (including payments made to obtain or avoid the need for the consent of
any holder of such Indebtedness).

          "OFF-BALANCE SHEET LIABILITY" of a Person means, without duplication,
the principal component of (i) any Receivables Purchase Facility or any other
repurchase obligation or liability of such Person with respect to accounts or
notes receivable sold by such Person (other than the sale or disposition in the
ordinary course of business of accounts or notes receivable in connection with
the compromise or collection thereof consistent with customary industry practice
(and not as part of any bulk sale or financing of receivables)) or (ii) any
liability under any so-called "synthetic lease" or "tax ownership operating
lease" transaction entered into by such Person; provided that "Off-Balance Sheet
Liabilities" shall not include the principal component of the foregoing if such
principal component (a) is otherwise reflected as a liability on such Person's
consolidated balance sheet or (b) is deducted from revenues in determining such
Person's consolidated net income but is not thereafter added back in calculating
such Person's Consolidated EBITDA.

          "OPERATING LEASE" of a Person means any lease of property (other than
a Capitalized Lease) by such Person as lessee which has an original term
(including any required renewals and any renewals effective at the option of the
lessor) of one year or more.

                                       13
<Page>

          "OPTIONAL TERMINATION DATE" shall have the meaning assigned in
subsection 2.7(d).

          "OPTIONAL TERMINATION NOTICE" shall have the meaning assigned in
subsection 2.7(d).

          "ORIGINAL SUPPLEMENT" shall have the meaning assigned in the preamble
hereto.

          "OTHER TAXES" shall mean any and all current or future stamp or
documentary taxes or other excise or property taxes, charges or similar levies
arising from any payment made under the Transaction Documents or from the
execution, delivery or enforcement of, or otherwise with respect to, any
Transaction Document.

          "PAYMENT TERMS FACTOR" shall mean 1.017.

          "PBGC" shall mean the Pension Benefit Guaranty Corporation established
pursuant to Subtitle A of Title IV of ERISA.

          "PERMITTED ACQUISITION" shall mean an Acquisition permitted by Section
6.13.5 of the Credit Agreement.

          "PERMITTED SHARE REPURCHASE AMOUNT" shall mean the aggregate amount of
all distributions made by USSC to USI and the aggregate amount of all capital
stock of USI redeemed, repurchased, acquired or retired by USI, from and after
March 21, 2003, calculated as of the date such distribution is made, up to the
greater of (a) $50,000,000 and (b) an amount equal to (x) $50,000,000, plus (y)
25% of Consolidated Net Income (or minus 25% of any loss) in each fiscal quarter
beginning with the fiscal quarter ending June 30, 2003.

          "PLAN" means an employee pension benefit plan, excluding any
Multiemployer Plan, which is covered by Title IV of ERISA or subject to the
minimum funding standards under Section 412 of the Code as to which USI or any
member of the Controlled Group may have any liability.

          "PROGRAM COSTS" shall mean, for any Business Day, the sum of (i) all
expenses, indemnities and other amounts due and payable to any Affected Party
under the Agreement or this Supplement (including, without limitation, any
Article VII costs) and (ii) the product of (A) all unpaid fees and expenses due
and payable to counsel to, and independent auditors of, the Company (other than
fees and expenses payable on or in connection with the closing of the issuance
of the Series 2004-1 Interests) and (B) a fraction, the numerator of which is
the Purchase Limit on such Business Day and the denominator of which is the sum
of (x) the Aggregate Invested Amounts on such Business Day (other than the
Series 2004-1 Invested Amount and the Invested Amount in respect of any variable
funding certificate of any other Outstanding Series) and (y) the Aggregate
Commitment Amount on such Business Day plus the Aggregate Commitment Amount for
any variable funding certificate of any other Outstanding

                                       14
<Page>

Series; PROVIDED, HOWEVER, that the amount of Program Costs payable pursuant to
subsection 3A.6(b)(iv) shall not exceed $75,000 in the aggregate in any fiscal
year of the Servicer.

          "PROGRAM SUPPORT AGREEMENT" shall mean and include the Liquidity
Agreement and any other agreement entered into by any Program Support Provider
providing for: (a) the issuance of one or more letters of credit for the account
of the Committed Purchaser, (b) the issuance of one or more surety bonds for
which the Committed Purchaser is obligated to reimburse the applicable Program
Support Provider for any drawings thereunder, (c) the sale by the Committed
Purchaser to any Program Support Provider of its Series 2004-1 Purchaser
Invested Amount (or portions thereof or participations therein) and/or (d) the
making of loans and/or other extensions of credit to the Committed Purchaser in
connection with the Committed Purchaser's commercial paper program, together
with any letter of credit, surety bond or other instrument issued thereunder but
excluding any discretionary advance facility provided by the Administrator.

          "PROGRAM SUPPORT PROVIDER" shall mean and include any Liquidity
Purchaser and any other Person (other than any customer of the Committed
Purchaser) now or hereafter extending credit or having a commitment to extend
credit to or for the account of, or to make purchases from, the Committed
Purchaser or issuing a letter of credit, surety bond or other instrument to
support any obligations arising under or in connection with the Committed
Purchaser's commercial paper program.

          "PURCHASE LIMIT" shall mean $25,000,000 as such amount may be reduced
in accordance with Section 2.8. "PURCHASE LIMIT REDUCTION" shall have the
meaning assigned in subsection 2.7(a).

          "RATE PERIOD" shall mean, unless otherwise mutually agreed by the
Administrator and the Company, with respect to any Funding Tranche, (i)
initially the period commencing on (and including) the date of the initial
purchase or funding of such Funding Tranche and ending on (but excluding) the
next following Distribution Date, and (ii) thereafter, each period commencing on
(and including) a Distribution Date and ending on (but excluding) the next
following Distribution Date; PROVIDED, that:

          (A) any Rate Period with respect to any Funding Tranche not funded at
          the CP Rate which would otherwise end on a day which is not a Business
          Day shall be extended to the next succeeding Business Day; PROVIDED,
          HOWEVER, if Yield in respect of such Rate Period is computed by
          reference to the Euro-Rate, and such Rate Period would otherwise end
          on a day which is not a Business Day, and there is no subsequent
          Business Day in the same calendar month as such day, such Rate Period
          shall end on the next preceding Business Day;

          (B) in the case of any Rate Period for any Funding Tranche which
          commences before the occurrence of an Early Amortization Event and
          would otherwise end on a date occurring after the occurrence of an
          Early Amortization Event, such

                                       15
<Page>

          Rate Period shall end on the date of the occurrence of an Early
          Amortization Event and the duration of each Rate Period which
          commences on or after the occurrence of an Early Amortization Event
          shall be of such duration as shall be selected by the Administrator;
          and

          (C) any Rate Period in respect of which Yield is computed by reference
          to the CP Rate may be terminated at the election of, and upon notice
          thereof to the Company and the Servicer by, the Administrator any
          time, in which case the Funding Tranche allocated to such terminated
          Rate Period shall be allocated to a new Rate Period commencing on (and
          including) the date of such termination and ending on (but excluding)
          the next following Distribution Date, and shall accrue Yield at the
          Alternate Rate.

          "RATE TYPE" shall mean the Euro-Rate, the Base Rate or the CP Rate.

          "RATING AGENCY" and "RATING AGENCIES" shall mean Moody's, S&P and/or
any other nationally recognized statistical rating organization from which a
rating for the Commercial Paper was requested by the Fifth Third Conduit Program
and is currently in effect.

          "RATING AGENCY CONDITION" shall mean, with respect to any action, that
the Administrator and the Fifth Third Conduit Program shall have given their
prior written consent to such action.

          "RECORD DATE" shall mean the first Business Day prior to each
Distribution Date.

          "RECOURSE OBLIGATIONS" shall have the meaning set forth in Section
11.16.

          "REPORTED PERIOD" shall mean, with respect to Series 2004-1, each
Business Day.

          "REQUIRED DOWNGRADE ASSIGNMENT PERIOD" is defined in Section 2.12(a).

          "REQUIRED NOTICE PERIOD" means two Business Days.

          "SCHEDULED REVOLVING TERMINATION DATE" shall mean the last day of the
Accrual Period ending on or immediately before the Commitment Expiry Date.

          "SERIES 2004-1" shall mean Series 2004-1, the Principal Terms of which
are set forth in this Supplement.

          "SERIES 2004-1 ADJUSTED INVESTED AMOUNT" shall mean, as of any date of
determination, (i) the Series 2004-1 Invested Amount on such date, MINUS (ii)
the amount on deposit in the Series 2004-1 Collection Sub-account on such date.

          "SERIES 2004-1 ALLOCATED RECEIVABLES AMOUNT" shall mean, on any date
of determination, the product of (x) the Aggregate Receivables Amount on such
day and (y) the

                                       16
<Page>

percentage equivalent of a fraction the numerator of which is the Series 2004-1
Target Receivables Amount on such day and the denominator of which is the
Aggregate Target Receivables Amount on such day.

          "SERIES 2004-1 AMORTIZATION PERIOD" shall mean the period commencing
on the Business Day following the earliest to occur of (i) the date on which an
Early Amortization Period is declared to commence or automatically commences,
(ii) the Optional Termination Date and (iii) the Scheduled Revolving Termination
Date and ending on the earlier of (i) the date when the Series 2004-1 Invested
Amount shall have been reduced to zero and all accrued interest and other
amounts owing on the VFC Certificates and to the Administrator and the Committed
Purchaser hereunder shall have been paid in full and (ii) the Series 2004-1
Termination Date.

          "SERIES 2004-1 COLLECTION SUBACCOUNT" shall have the meaning assigned
in subsection 3A.2(a).

          "SERIES 2004-1 FUNDED AMOUNT" shall mean, as of any date of
determination, the Series 2004-1 Purchaser Invested Amount of the Committed
Purchaser on such date.

          "SERIES 2004-1 INTERESTS" shall mean, collectively, the VFC
Certificates and the Series 2004-1 Subordinated Interest.

          "SERIES 2004-1 INVESTED AMOUNT" shall mean, as of any date of
determination, the Series 2004-1 Purchaser Invested Amount of the Committed
Purchaser on such date.

          "SERIES 2004-1 MONTHLY INTEREST" shall mean, for each Distribution
Date, the summation of the Discount that accrued during the related Rate Period
on each Funding Tranche outstanding during all or a portion of such Accrual
Period.

          "SERIES 2004-1 MONTHLY PRINCIPAL PAYMENT" shall have the meaning
assigned in Section 3A.5.

          "SERIES 2004-1 PERIODIC SERVICING FEE" shall have the meaning assigned
in Section 6.1.

          "SERIES 2004-1 PURCHASER INVESTED AMOUNT" shall mean, with respect to
the Committed Purchaser, in each case on any date of determination, an amount
equal to, without duplication, (a) the aggregate initial amount paid by the
Committed Purchaser for its interest in the VFC Certificate pursuant to Section
2.3, plus (b) the amount of any Increases funded by the Committed Purchaser,
pursuant to Section 2.5, minus (c) the aggregate amount of any Collections and
other distributions to the Committed Purchaser which are applied to reduce the
amounts funded by the Committed Purchaser under the foregoing clauses (a) and
(b).

          "SERIES 2004-1 RATIO" shall mean, as of any Settlement Report Date and
continuing until (but not including) the next Settlement Report Date, the sum of
the Loss

                                       17
<Page>

Percentage, the Dilution Percentage, the Servicing and Discount Reserve Ratio,
in each case, then in effect.

          "SERIES 2004-1 REQUIRED RESERVES" shall mean, as of any date of
determination, an amount equal to the product of (i) the Series 2004-1 Ratio,
multiplied by (ii) the Aggregate Receivables Amount at such time.

          "SERIES 2004-1 REVOLVING PERIOD" shall mean the period commencing on
the Issuance Date and terminating on the Facility Termination Date.

          "SERIES 2004-1 SUBORDINATED INTEREST" shall have the meaning assigned
in subsection 2.2(b).

          "SERIES 2004-1 SUBORDINATED INTEREST AMOUNT" shall mean, for any date
of determination, an amount equal to (i) the Series 2004-1 Allocated Receivables
Amount MINUS (ii) the Series 2004-1 Adjusted Invested Amount.

          "SERIES 2004-1 SUBORDINATED INTEREST REDUCTION AMOUNT" shall have the
meaning assigned in subsection 2.7(b).

          "SERIES 2004-1 TARGET RECEIVABLES AMOUNT" shall mean, on any date of
determination, the sum of (A) the Series 2004-1 Adjusted Invested Amount on such
day and (B) the Series 2004-1 Required Reserves for such day.

          "SERIES 2004-1 TERMINATION DATE" shall mean the Distribution Date that
occurs in March, 2005.

          "SERIES 2004-1 TRANSACTION DOCUMENTS" shall mean this Supplement, the
Receivables Sale Agreements, the Intercreditor Agreement, the Agreement and the
Servicing Agreement.

          "SERVICER" shall have the meaning specified in the introductory
paragraph hereto.

          "SERVICING AND DISCOUNT RESERVE RATIO" shall mean 2%.

          "SUPPLEMENT" shall have the meaning specified in the introductory
paragraph hereto.

          "TAXES" shall mean any and all present or future taxes, levies,
imposts, duties, deductions, charges or withholdings imposed by any Governmental
Authority.

          "TOPCO" means The Order People Company, a Delaware corporation.

          "TRANSACTION PARTIES" shall have the meaning assigned in subsection
2.6(d).

                                       18
<Page>

          "TRANSFER ISSUANCE DATE" shall mean the date on which a Commitment
Transfer Supplement becomes effective pursuant to the terms of such Commitment
Transfer Supplement.

          "TRUSTEE" shall have the meaning specified in the introductory
paragraph hereto.

          "UCC" shall mean the Uniform Commercial Code as in effect from time to
time in the State of New York.

          "UNALLOCATED BALANCE" shall mean, as of any Business Day, (i) the
portion of the Series 2004-1 Funded Amount allocated to any CP Tranche and (ii)
the sum of (A) the portion of the Series 2004-1 Funded Amount for which interest
is then being calculated by reference to the Base Rate and (B) the portion of
the Series 2004-1 Funded Amount allocated to any Eurodollar Tranche the Rate
Period in respect of which expires on such Business Day.

          "USI" shall mean United Stationers, Inc., a Delaware corporation.

          "USSC" shall mean United Stationers Supply Co., an Illinois
corporation.

          "USSC CHANGE IN CONTROL" shall mean USI shall cease to own, directly
or indirectly, 100% of the outstanding capital stock of USSC.

          "UTILIZATION FEE" shall have the meaning assigned in subsection
2.9(c).

          "UTILIZATION FEE RATE" shall have the meaning assigned in the Fee
Letter.

          "VFC CERTIFICATE" shall mean a VFC Certificate, Series 2004-1,
executed by the Company and authenticated by or on behalf of the Trustee,
substantially in the form of Exhibit A.

          "VFC CERTIFICATEHOLDER' shall mean the Committed Purchaser.

          "VFC CERTIFICATEHOLDERS' INTEREST" shall have the meaning assigned in
subsection 2.2(a).

          (b) If any term or provision contained herein conflicts with or is
inconsistent with any term, definition or provision contained in the Agreement,
the terms and provisions of this Supplement shall govern. All Article, Section
or subsection references herein shall mean Article, Section or subsections of
this Supplement, except as otherwise provided herein. Unless otherwise stated
herein, the context otherwise requires or such term is otherwise defined in the
Agreement, each capitalized term used or defined herein shall relate only to the
Series 2004-1 Interests and no other Series of Investor Certificates issued by
the Trust. All capitalized terms used herein and not otherwise defined have the
meanings assigned to such terms in Section 1.1 of the Agreement.

                                       19
<Page>

                                   ARTICLE II

                DESIGNATION OF CERTIFICATES; PURCHASE AND SALE OF

                              THE VFC CERTIFICATES

          SECTION 2.1 DESIGNATION. The Certificates and interests created and
authorized pursuant to the Agreement and this Supplement shall be divided into
two Classes, which shall be designated respectively as (i) the "VFC
Certificates, Series 2004-1" and (ii) an interest designated as the "Series
2004-1 Subordinated Interest."

          SECTION 2.2 THE SERIES 2004-1 INTERESTS. (a) The VFC Certificates
shall represent fractional undivided interests in the Trust, including, without
limitation, the right to receive (i) the Invested Percentage (expressed as a
decimal) of Collections received with respect to the Receivables and all other
funds on deposit in the Collection Account and (ii) all other funds on deposit
in the Series 2004-1 Collection Subaccounts and any subaccounts thereof
(collectively, the "VFC CERTIFICATEHOLDERS' INTEREST").

          (b) The "SERIES 2004-1 SUBORDINATED INTEREST" shall be a fractional
undivided interest in the Trust retained by the Company, consisting of the right
to receive Collections with respect to the Receivables allocated to the VFC
Certificateholders' Interest and not required to be distributed to or for the
benefit of the Committed Purchaser. The Exchangeable Company Interest and any
other Series of Investor Certificates outstanding shall represent the ownership
interest in the remainder of the Trust not allocated pursuant hereto to the VFC
Certificateholders' Interest or the Series 2004-1 Subordinated Interest.

          (c) The VFC Certificates shall be substantially in the form of Exhibit
A and shall, upon issue, be executed and delivered by the Company to the Trustee
for authentication and redelivery as provided in Section 2.4 hereof and Section
5.2 of the Agreement.

          SECTION 2.3 PURCHASES OF INTERESTS IN THE VFC CERTIFICATES.

          (a) INITIAL PURCHASE. Subject to the terms and conditions of this
Supplement, including delivery of notice in accordance with Section 2.4 and 2.5,
(i) on the Issuance Date, the Committed Purchaser hereby agrees to purchase on
the Issuance Date a VFC Certificate in an amount equal to the Initial Series
2004-1 Invested Amount and (ii) thereafter, the Committed Purchaser hereby
agrees to maintain its VFC Certificate, subject to increase or decrease during
the Series 2004-1 Revolving Period, in accordance with the provisions of this
Supplement. The Company hereby agrees to maintain ownership of the Series 2004-1
Subordinated Interest, subject to increase or decrease during the Series 2004-1
Revolving Period, in accordance with the provisions of this Supplement. Payments
by the Committed Purchaser in respect of the VFC Certificates shall be made in
immediately available funds on the Issuance Date to the Administrator for
payment to the Company.

                                       20
<Page>

          (b) MAXIMUM SERIES 2004-1 FUNDED AMOUNT. Notwithstanding anything to
the contrary contained in this Supplement, at no time shall the Series 2004-1
Funded Amount exceed the Purchase Limit at such time.

          SECTION 2.4 DELIVERY. On the Issuance Date, the Company shall sign, on
behalf of the Trust, and shall direct the Trustee in writing pursuant to Section
5.2 of the Agreement to duly authenticate, and the Trustee, upon receiving such
direction, shall so authenticate a VFC Certificate in such name and such
denomination and deliver such VFC Certificate to the Administrator, on behalf of
the Committed Purchaser, in accordance with such written directions. The VFC
Certificate shall be issued in a minimum denominations of $1,000,000 and in
integral multiples of $100,000 in excess thereof. The Trustee shall mark on its
books the actual Series 2004-1 Invested Amount and Series 2004-1 Subordinated
Interest Amount outstanding on any date of determination, which, absent manifest
error, shall constitute PRIMA FACIE evidence of the outstanding Series 2004-1
Invested Amount and Series 2004-1 Subordinated Interest Amount from time to
time.

          SECTION 2.5 PROCEDURE FOR INITIAL ISSUANCE AND FOR INCREASING THE
SERIES 2004-1 INVESTED AMOUNT. (a) Subject to subsection 2.5(c) of this
Supplement, (i) on the date designated in writing as provided herein (the
"ISSUANCE DATE"), the Committed Purchaser hereby agrees to purchase a VFC
Certificate in accordance with Section 2.3 and (ii) on any Business Day during
the Commitment Period up to eight times per calendar month, the Committed
Purchaser hereby agrees that the Series 2004-1 Invested Amount may be increased
by increasing its Series 2004-1 Purchaser Invested Amount (an "INCREASE"), upon
the request of the Servicer or the Company on behalf of the Trust (each date on
which an increase in the Series 2004-1 Invested Amount occurs hereunder being
herein referred to as the "INCREASE DATE" applicable to such Increase);
PROVIDED, HOWEVER, that the Servicer or the Company, as the case may be, shall
have given the Administrator (with a copy to the Trustee) irrevocable written
notice (effective upon receipt), substantially in the form of Exhibit C hereto,
of such request no later than (i) 2:00 p.m., Cincinnati time, two Business Days
prior to the Issuance Date or such Increase Date, as the case may be, in the
case of any Increase Date if the Initial Series 2004-1 Invested Amount or
Increase Amount is to be priced solely with reference to the CP Rate or (ii) (x)
if the Initial Series 2004-1 Invested Amount or Increase Amount is to be priced
solely with reference to the Base Rate, on or prior to 12:00 noon, Cincinnati
time, on the Issuance Date or such Increase Date, as the case may be and (y) if
all or a portion of the Initial Series 2004-1 Invested Amount or Increase Amount
is to be allocated to a Eurodollar Tranche, 1:00 p.m., Cincinnati time, three
Business Days prior to the Issuance Date or such Increase Date, as the case may
be; PROVIDED, FURTHER, that the provisions of this subsection shall not restrict
the allocations of Collections pursuant to Article III. Such notice shall state
(x) the Issuance Date or the Increase Date, as the case may be, and (y) the
initial invested amount (the "INITIAL SERIES 2004-1 INVESTED AMOUNT") or, the
proposed amount of such Increase (the "INCREASE AMOUNT"), as the case may be.

          (b) [Reserved].

                                       21
<Page>

          (c) The Committed Purchaser shall not be required to make the initial
purchase of VFC Certificates on the Issuance Date or to increase its Series
2004-1 Purchaser Invested Amount on any Increase Date hereunder unless:

               (i)    the related aggregate initial purchase amount or Increase
     Amount is equal to $1,000,000 or an integral multiple of $100,000 in excess
     thereof;

               (ii)   after giving effect to the initial purchase amount or
     Increase Amount, (A) the Series 2004-1 Funded Amount would not exceed the
     Purchase Limit on the Issuance Date or such Increase Date, as the case may
     be, and (B) the Series 2004-1 Allocated Receivables Amount would not be
     less than the Series 2004-1 Target Receivables Amount on the Issuance Date
     or such Increase Date, as the case may be;

               (iii)  at the time of and after giving effect to the initial
     purchase amount or the Increase Amount, no Early Amortization Event or
     Potential Early Amortization Event shall have occurred and be continuing; a

               (iv)   all of the representations and warranties made by each of
     the Company, the Servicer, USFS and each Seller in each Transaction
     Document to which it is a party are true and correct in all material
     respects on and as of the Issuance Date or such Increase Date, as the case
     may be, as if made on and as of such date (except to the extent such
     representations and warranties are expressly made as of another date);

               (v)    the Servicer shall have delivered to the Administrator on
     or prior to such Increase Date, in form and substance satisfactory to the
     Administrator, all Monthly Settlement Statements as and when due under
     Section 4.2 of the Servicing Agreement, and upon the Administrator's
     request, the Servicer shall have delivered to the Administrator at least
     three days prior to such Increase, an interim Monthly Settlement Statement
     showing the amount of Eligible Receivables;

               (vi)   the Commitment Termination Date shall not have occurred;
     and

               (vii)  the Administrator shall have received such other
     approvals, opinions or documents as it may reasonably request as a result
     of changes in circumstances or new credit information.

The Company's acceptance of funds in connection with (x) the initial purchase of
VFC Certificates on the Issuance Date and (y) each Increase occurring on any
Increase Date shall constitute a representation and warranty by the Company to
the Committed Purchaser as of the Issuance Date or such Increase Date (except to
the extent such representations and warranties are expressly made as of another
date), as the case may be, that all of the conditions contained in this
subsection 2.5(c) have been satisfied.

          (d) After receipt by the Administrator of the notice required by
subsection 2.5(a) from the Servicer or the Company on behalf of the Trust, the
Administrator shall, so long as the

                                       22
<Page>

conditions set forth in subsections 2.5(a) and (c) are satisfied, promptly
provide telephonic notice to the Committed Purchaser of the Increase Date and of
the Increase Amount. The Committed Purchaser agrees to pay in immediately
available funds the amount of such Increase on the related Increase Date to the
Administrator for payment to the Trust for deposit in the Series 2004-1
Collection Subaccount.

          SECTION 2.6 [Reserved]

          SECTION 2.7 PROCEDURE FOR DECREASING THE SERIES 2004-1 INVESTED
AMOUNT; OPTIONAL TERMINATION. (a) On any Business Day during the Series 2004-1
Revolving Period or the Series 2004-1 Amortization Period, upon the written
request of the Servicer or the Company on behalf of the Trust to the
Administrator, the Series 2004-1 Invested Amount may be reduced (a "DECREASE")
by the distribution by the Servicer to the Administrator for the benefit of the
Committed Purchaser in accordance with its Series 2004-1 Purchaser Invested
Amount of funds on deposit in the Series 2004-1 Collection Subaccount on such
day in an amount not to exceed the amount of such funds on deposit on such day;
PROVIDED that the Servicer shall have given the Administrator (with a copy to
the Trustee) irrevocable written notice (effective upon receipt), prior to 1:00
p.m., Cincinnati time, in accordance with the Required Notice Period, and which
notice shall state the amount of such Decrease; provided, further, that such
Decrease shall be in an amount equal to $1,000,000 and integral multiples of
$100,000 in excess thereof.

          (b) Simultaneously with any such Decrease during the Series 2004-1
Revolving Period, the Series 2004-1 Subordinated Interest Amount shall be
reduced by an amount (the "SERIES 2004-1 SUBORDINATED INTEREST REDUCTION
AMOUNT") such that the Series 2004-1 Subordinated Interest Amount shall equal
the Series 2004-1 Required Reserves after giving effect to such Decrease. During
the Series 2004-1 Revolving Period, after the distribution described in
subsection (a) above has been made, and the Series 2004-1 Subordinated Interest
Amount shall have been reduced by the Series 2004-1 Subordinated Interest
Reduction Amount, a distribution shall be made to the owner of the Series 2004-1
Subordinated Interest out of remaining funds on deposit in the Series 2004-1
Collection Subaccount in an amount equal to the lesser of (x) the Series 2004-1
Subordinated Interest Reduction Amount and (y) the amount of such remaining
funds on deposit in the Series 2004-1 Collection Subaccount.

          (c) Any reduction in the Series 2004-1 Invested Amount on any Business
Day shall be allocated first to reduce the Unallocated Balance and then to
reduce the portion of the Series 2004-1 Invested Amount allocated to Eurodollar
Tranches in such order as the Company may select in order to minimize costs
payable pursuant to Section 7.4.

               (d) (i) On any Business Day unless the Scheduled Revolving
     Termination Date or an Early Amortization Event shall have occurred and be
     continuing, the Company shall have the right to deliver an irrevocable
     written notice (an "OPTIONAL TERMINATION NOTICE") to the Trustee, the
     Servicer and the Administrator in which the Company declares that the
     Series 2004-1 Revolving Period shall terminate on the date (the "OPTIONAL
     TERMINATION DATE") set forth in such notice (which date, in any event,
     shall be

                                       23
<Page>

     the last day of a Accrual Period which is not less than 10 Business Days
     from the date on which such notice is delivered).

               (ii)   From and after the Optional Termination Date, the Series
     2004-1 Amortization Period shall commence for all purposes under this
     Supplement and the other Transaction Documents. The Trustee shall give
     prompt written notice of its receipt of an Optional Termination Notice to
     the Committed Purchaser.

          SECTION 2.8 REDUCTION OF THE PURCHASE LIMIT. (a) On any Business Day
during the Series 2004-1 Revolving Period, the Company, on behalf of the Trust,
may, upon three Business Days' prior written notice to the Administrator
(effective upon receipt) (with copies to the Servicer and the Trustee) reduce or
terminate the Purchase Limit (a "PURCHASE LIMIT REDUCTION") in a minimum
aggregate amount equal to $5,000,000 or a whole multiple of $1,000,000 in excess
thereof; PROVIDED that no such termination or reduction shall be permitted if,
after giving effect thereto and to any reduction in the Series 2004-1 Invested
Amount on such date, the Series 2004-1 Invested Amount would exceed the Purchase
Limit then in effect.

          (b) [Reserved]

          (c) Once reduced, the Purchase Limit may not be subsequently
reinstated. The Administrator shall provide written notice of the reduced
Purchaser Limit to the Company, the Servicer and the Trustee.

          SECTION 2.9 INTEREST, FEES. (a) Interest shall be payable on the VFC
Certificates on each Distribution Date pursuant to subsection 3A.6(a).

          (b) The Servicer shall distribute pursuant to subsection 3A.6(b), from
amounts on deposit in the Series 2004-1 Collection Sub-account, to the
Administrator, for the account of the Committed Purchaser, on each Distribution
Date, a commitment fee with respect to each Accrual Period ending on such date
(the "COMMITMENT FEE") at the Commitment Fee Rate of the average daily excess of
102% of the Purchase Limit OVER the average Series 2004-1 Purchaser Invested
Amount during such Accrual Period for the actual number of days in such Accrual
Period. The Commitment Fee shall be payable (i) monthly in arrears on each
Distribution Date and (ii) on the Facility Termination Date. To the extent that
funds on deposit in the Series 2004-1 Collection Sub-account at any such date
are insufficient to pay the Commitment Fee due on such date, the Servicer shall
so notify the Company and the Company shall immediately pay the Administrator
the amount of any such deficiency.

          (c) The Servicer shall distribute pursuant to subsection 3A.6(b), from
amounts on deposit in the Series 2004-1 Collection Sub-account, to the
Administrator, for the account of the Committed Purchaser, on each Distribution
Date, a utilization fee (the "UTILIZATION FEE") with respect to each Accrual
Period ending on such date at the Utilization Fee Rate of the average daily
Series 2004-1 Purchaser Invested Amount during such period for the actual number
of days in such Accrual Period. The Utilization Fee shall be payable (i) monthly
in arrears on each Distribution Date and (ii) on the Facility Termination Date.
To the extent that funds on deposit in the Series 2004-1 Collection Sub-account
at any such date are insufficient to pay the Utilization Fee due on such date,
the Servicer shall so notify the Company and the Company shall immediately pay
the Administrator the amount of any such deficiency.

                                       24
<Page>

          (d) Calculations of per annum rates and fees under this Supplement
shall be made on the basis of a 360- (or 365-/366-, in the case of interest on
the Floating Tranche based on the Base Rate) day year with respect to Commitment
Fees, Utilization Fees and interest rates. Each determination of the Euro-Rate
by the Administrator shall be conclusive and binding upon each of the parties
hereto in the absence of manifest error.

          SECTION 2.10 Indemnification by the Company and the Servicer. Without
limiting any other rights that any Affected Party may have hereunder or under
applicable law, (A) the Company hereby agrees to indemnify (and pay upon demand
to) each Affected Party and their respective assigns, officers, directors,
agents and employees (each, an "INDEMNIFIED PARTY") from and against any and all
damages, losses, claims, taxes, liabilities, costs, expenses and for all other
amounts payable, including reasonable attorneys' fees (which attorneys may be
employees of the Indemnified Party, provided that such fees of attorneys that
are employees of any Indemnified Party shall not be duplicative of the fees of
any third-party attorneys retained by such Indemnified Party) and disbursements
(all of the foregoing being collectively referred to as "INDEMNIFIED AMOUNTS")
awarded against or incurred by any of them arising out of or as a result of any
Pooling and Servicing Agreement or any other Transaction Document or the
acquisition, either directly or indirectly, by the Committed Purchaser of an
interest in the Trust or Trust Assets, and (B) the Servicer hereby agrees to
indemnify (and pay upon demand to) each Indemnified Party for Indemnified
Amounts awarded against or incurred by any of them arising out of the Servicer's
activities as Servicer hereunder excluding, however, in all of the foregoing
instances under the preceding clauses (A) and (B):

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

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

               (iii)  Excluded Taxes to the extent that the computation of such
     taxes is consistent with the intended characterization for income tax
     purposes of the acquisition by the Committed Purchaser of the VFC
     Certificates (or any interest therein) as a loan or loans by the Committed
     Purchaser to the Company secured by the Receivables, and other Trust
     Assets;

          provided, however, that nothing contained in this sentence shall limit
the liability of the Company or the Servicer or limit the recourse of the
Administrator or the Committed

                                       25
<Page>

Purchaser to the Company or the Servicer for amounts otherwise specifically
provided to be paid by the Company or the Servicer, as applicable, under the
terms of any Pooling and Servicing Agreement. Without limiting the generality of
the foregoing indemnification, the Company shall indemnify each Indemnified
Party for Indemnified Amounts (including, without limitation, losses in respect
of uncollectible receivables, regardless of whether reimbursement therefor would
constitute recourse to the Company or the Servicer) relating to or resulting
from:

               (i)    any representation or warranty made by the Company, the
     Servicer, the Support Provider or any Seller (or any officers of any such
     Person) under or in connection with any Pooling and Servicing Agreement or
     any other Transaction Document or any other information or report delivered
     by any such Person pursuant hereto or thereto, which shall have been false
     or incorrect when made or deemed made;

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

               (iii)  any failure of the Company, the Servicer, the Support
     Provider or any Seller to perform its duties, covenants or other
     obligations in accordance with the provisions of any Pooling and Servicing
     Agreement or any other Transaction Document;

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

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

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

               (vii)  any investigation, litigation or proceeding related to or
     arising from any Pooling and Servicing Agreement or any other Transaction
     Document, the transactions contemplated hereby, the use of the proceeds of
     an Increase, the ownership of the VFC Certificates (or any interest
     therein) or any other investigation, litigation or proceeding relating to
     the Company, the Servicer, the Support Provider or any Seller in which any
     Affected Party becomes involved as a result of any of the transactions
     contemplated hereby;

                                       26
<Page>

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

               (ix)   any Bankruptcy Event relating to the Company, the
     Servicer, the Support Provider, any Seller or any of their respective
     Subsidiaries;

               (x)    any failure of the Company to acquire and maintain legal
     and equitable title to, and ownership of any Receivable and the Related
     Property and Collections with respect thereto from USFS, free and clear of
     any Lien (other than as created hereunder); or any failure of the Company
     to give reasonably equivalent value to USFS under the USFS Receivables Sale
     Agreement in consideration of the transfer by USFS of any Receivable, or
     any attempt by any Person to void such transfer under statutory provisions
     or common law or equitable action;

               (xi)   any failure of USFS to acquire and maintain legal and
     equitable title to, and ownership of any Receivable and the Related
     Property and Collections with respect thereto from any Seller, free and
     clear of any Lien (other than as created hereunder); or any failure USFS to
     give reasonably equivalent value to any Seller under the USSC Receivables
     Sale Agreement in consideration of the transfer by such Seller of any
     Receivable, or any attempt by any Person to void such transfer under
     statutory provisions or common law or equitable action;

               (xii)  any failure to vest and maintain vested in the Trustee for
     the benefit of the Trust and the Committed Purchaser, or to transfer to the
     Trustee for the benefit of the Trust and the Committed Purchaser, legal and
     equitable title to, and ownership of, a first priority perfected undivided
     percentage ownership interest (to the extent of the Invested Percentage
     contemplated hereunder) or security interest in the Receivables, the
     Related Property and the Collections, free and clear of any Lien (except as
     created by the Transaction Documents);

               (xiii) the failure to have filed, or any delay in filing,
     financing statements or other similar instruments or documents under the
     UCC of any applicable jurisdiction or other applicable laws with respect to
     any Receivable, the Related Property and Collections with respect thereto,
     and the proceeds of any thereof, whether at the time of any Increase or at
     any subsequent time;

               (xiv)  any action or omission by the Company, the Servicer, the
     Support Provider or any Seller which reduces or impairs the rights of the
     Trustee or the Committed Purchaser with respect to any Receivable or the
     value of any such Receivable;

               (xv)   any attempt by any Person to void any Increase hereunder
     or the purchase of any VFC Certificate under statutory provisions or common
     law or equitable action; and

                                       27
<Page>

               (xvi)  the failure of any Receivable included in the calculation
     of the Series 2004-1 Allocated Receivables Amount as an Eligible Receivable
     to be an Eligible Receivable at the time so included.

     The foregoing provisions shall survive the termination of this Supplement
     and the Agreement, resignation or removal of any Indemnified Party and
     satisfaction and discharge of the Trust

                                   ARTICLE III

                          ARTICLE III OF THE AGREEMENT

          Section 3.1 of the Agreement and each other section of Article III of
the Agreement relating to another Series shall read in their entirety herein as
provided in the Agreement. Article III of the Agreement (except for Section 3.1
thereof and any portion thereof relating to another Series) shall read in its
entirety herein as follows and shall be exclusively applicable to the Series
2004-1 Interests:

          SECTION 3A.2. ESTABLISHMENT OF TRUST ACCOUNTS. The Servicer shall
cause to be established and maintained in the name of the Company, (i) for the
benefit of the Committed Purchasers and (ii) in the case of clauses (A) and (B)
below, for the benefit, subject to the prior and senior interest of the
Committed Purchasers, of the owner of the Series 2004-1 Subordinated Interest, a
subaccount of the Collection Account (the "SERIES 2004-1 COLLECTION
SUBACCOUNT"), which subaccount is the Series Collection Subaccount with respect
to Series 2004-1 and shall bear a designation indicating that the funds
deposited therein are held for the benefit of the Persons (and, for each such
Person, to the extent) set forth in clauses (i) and (ii) above. The Trustee
shall have the right to take sole dominion and control of the Collection Account
and the Series 2004-1 Collection Subaccount pursuant to the terms of a Lockbox
Agreement and to direct the disposition of funds from time to time on deposit in
the Series 2004-1 Collection Subaccount and in all proceeds thereof.

          SECTION 3A.3. ALLOCATIONS. The Servicer shall apply and distribute the
portion of the Aggregate Daily Collections allocated to the Series 2004-1
Interests pursuant to Article III of the Agreement (the "SERIES 2004-1
COLLECTIONS"):

          (a)     On each Business Day during the Series 2004-1 Revolving
Period, an amount equal to the Accrued Interest Expense shall be set aside for
distribution in accordance with Section 3A.6(a) on the next occurring
Distribution Date. The balance of such Series 2004-1 Collections (the
"REINVESTMENT AMOUNT" shall be distributed by the Servicer to such accounts or
such persons as the Company may direct in writing (which directions may consist
of standing instructions provided by the Company that shall remain in effect
until changed by the Company in writing);; PROVIDED that such distribution shall
be made only if no Early Amortization Event or Potential Early Amortization
Event has occurred and is continuing and only to the extent that, if after
giving effect to such distribution, the Series 2004-1 Target Receivables Amount
would not exceed the Series 2004-1 Allocated Receivables Amount; PROVIDED
FURTHER that if the Company

                                       28
<Page>

or the Servicer, on behalf of the Company, shall have given the Administrator
irrevocable prior written notice (effective upon receipt) when required under
Section 2.7(a), the Servicer may withdraw all or a portion of such amounts on
deposit in the Series 2004-1 Collection Subaccount and apply such withdrawn
amounts toward the reduction of the Series 2004-1 Invested Amount and the Series
2004-1 Subordinated Interest Amount in accordance with Section 2.7.

          (b)     On each Business Day during the Series 2004-1 Amortization
Period (including Distribution Dates), funds deposited in the Series 2004-1
Collection Subaccount shall be set aside for distribution in accordance with
Section 3A.6(b). Except as set forth in Section 3A.6(b), no amounts on deposit
in the Series 2004-1 Collection Subaccount shall be distributed by the Servicer
to the Company or the owner of the Series 2004-1 Subordinated Interest during
the Series 2004-1 Amortization Period.

          (c)     The allocations to be made pursuant to this Section 3A.3 are
subject to the provisions of Sections 2.5, 2.7, 7.2, 9.1 and 9.4 of the
Agreement.

          SECTION 3A.4. DETERMINATION OF SERIES 2004-1 MONTHLY INTEREST. (a) On
or before the Business Day preceding each Distribution Date, the Administrator
shall notify the Servicer and the Trustee of the Series 2004-1 Monthly Interest
for the Accrual Period ending on the related Distribution Date. From time to
time, for purposes of determining the Rate Periods applicable to the different
portions of the Series 2004-1 Funded Amount and of calculating Discount with
respect thereto, the Administrator shall allocate the Series 2004-1 Funded
Amount to one or more tranches (each a "FUNDING TRANCHE"). At any time, each
Funding Tranche shall have only one Rate Period and one Rate Type. In addition,
at any time when the Series 2004-1 Funded Amount is not divided into more than
one portion, "Funding Tranche" means 100% of the Series 2004-1 Invested Amount.

          (b)     From time to time the Administrator shall notify the Servicer
and the Trustee of the number of Funding Tranches and the Rate Type of each
Funding Tranche.

          (c)     On each Distribution Date, the Servicer shall determine the
excess, if any (the "INTEREST SHORTFALL"), of (i) the Series 2004-1 Monthly
Interest for the Accrual Period ending on such Distribution Date OVER (ii) the
amount which will be available to be distributed to the Purchasers on such
Distribution Date in respect thereof pursuant to this Supplement. If the
Interest Shortfall with respect to any Distribution Date is greater than zero,
an additional amount ("ADDITIONAL INTEREST") equal to the product of (A) the
number of days until such Interest Shortfall shall be repaid DIVIDED BY 365 (or
366, as the case may be), (B) the Base Rate PLUS 2.0% and (C) such Interest
Shortfall (or the portion thereof which has not been paid to the Committed
Purchaser) shall be payable as provided herein with respect to the VFC
Certificates on each Distribution Date following such Distribution Date to but
excluding the Distribution Date on which such Interest Shortfall is paid to the
VFC Certificateholders.

          (d)     Any reduction in the Series 2004-1 Invested Amount on any
Business Day shall be allocated in the following order of priority:

                                       29
<Page>

          FIRST, to reduce the Unallocated Balance, as appropriate; and

          SECOND, to reduce the portion of the Series 2004-1 Invested Amount
allocated to Eurodollar Tranches in such order as the Company may select in
order to minimize costs payable pursuant to Section 7.4.

          SECTION 3A.5. DETERMINATION OF SERIES 2004-1 MONTHLY PRINCIPAL.
PAYMENTS OF SERIES 2004-1 PRINCIPAL. The amount (the "SERIES 2004-1 MONTHLY
PRINCIPAL PAYMENT") distributable from the Series 2004-1 Collection Subaccount
on each Distribution Date during the Series 2004-1 Amortization Period, as
determined by the Servicer, shall be equal to the amount on deposit in such
account on the immediately preceding Settlement Report Date; PROVIDED, HOWEVER,
that the Series 2004-1 Monthly Principal Payment on any Distribution Date shall
not exceed the Series 2004-1 Invested Amount on such Distribution Date.

          SECTION 3A.6. APPLICATIONS. (a) During the Series 2004-1 Revolving
Period the Servicer shall on each Distribution Date apply funds on deposit in
the Series 2004-1 Collection Subaccount in the following order of priority to
the extent funds are available:

          (i)     to the payment of the Series 2004-1 Periodic Servicing Fee if
     the Company or one of its Affiliates is not then acting as the Servicer;

          (ii)    to the reimbursement of the Administrator's costs of
     collection and enforcement of this Supplement;

          (iii)   ratably, to the payment of all accrued and unpaid Series
     2004-1 Monthly Interest payable on such Distribution Date (the "MONTHLY
     INTEREST PAYMENT"), plus the amount of any Monthly Interest Payment
     previously due but not distributed to the Administrator, for further
     distribution to the Committed Purchaser on a prior Distribution Date, plus
     the amount of any Additional Interest for such Distribution Date and any
     Additional Interest previously due but not distributed to the
     Administrator, for further distribution to the Committed Purchaser on a
     prior Distribution Date, plus all accrued and unpaid fees under the Fee
     Letter (including the Commitment Fee and the Utilization Fee);

          (iv)    to the extent applicable, to the reduction of Series 2004-1
     Invested Amount;

          (v)     to the extent applicable, to fund any Decrease in accordance
     with Section 2.7;

          (vi)    to the payment of any amounts owing to the Trustee pursuant to
     Section 8.5 of the Agreement;

          (vii)   to the payment of all other accrued and unpaid Recourse
     Obligations; and

                                       30
<Page>

          (viii)  to the payment of the Series 2004-1 Periodic Servicing Fee if
the Company or any Affiliate thereof is then acting as the Servicer.

          Any remaining amounts on deposit in the Series 2004-1 Collection
Subaccount not allocated pursuant to clauses (i) through (viii) above shall be
paid to the owner of the Series 2004-1 Subordinated Interest; provided, however,
that during the Series 2004-1 Amortization Period, such remaining amounts shall
be distributed in accordance with Section 3A.6(b).

          (b)     During the Series 2004-1 Amortization Period, the Servicer
shall apply, on each Distribution Date (or any other Business Day specified by
the Administrator), amounts on deposit in the Series 2004-1 Collection
Subaccount in the following order of priority:

          (i) to the payment of the Series 2004-1 Periodic Servicing Fee if the
     Company or one of its Affiliates is not then acting as the Servicer;

          (ii)    to the reimbursement of the Administrator's costs of
     collection and enforcement of this Supplement;

          (iii)   to the payment of all accrued and unpaid Monthly Interest
     Payment payable on such Distribution Date, plus the amount of any Monthly
     Interest Payment previously due but not distributed to the Administrator,
     for further distribution to the Committed Purchaser on a prior Distribution
     Date, plus the amount of any Additional Interest for such Distribution Date
     and any Additional Interest previously due but not distributed to the
     Administrator, for further distribution to the Committed Purchaser, on a
     prior Distribution Date, plus all accrued and unpaid fees under the Fee
     Letter (including the Commitment Fee and the Utilization Fee);

          (iv)    to the payment of any amounts owing to the Trustee pursuant to
     Section 8.5 of the Agreement;

          (v)     to the payment of all other accrued and unpaid Recourse
     Obligations (other than the Series 2004-1 Periodic Servicing Fee if the
     Company or any of its Affiliates is then acting as the Servicer);

          (vi)    to the ratable reduction of Series 2004-1 Invested Amount;

          (vii)   to the payment of the Series 2004-1 Periodic Servicing Fee if
     the Company or any Affiliate thereof is then acting as the Servicer; and

          (viii)  following the repayment in full of the Series 2004-1 Invested
     Amount, the remaining amount on deposit in the Series 2004-1 Collection
     Subaccount on such Distribution Date, if any, shall be distributed to the
     owner of the Series 2004-1 Subordinated Interest.

                                       31
<Page>

          Section 3A.7 ELIGIBLE INVESTMENTS. All amounts from time to time held
in, deposited in or credited to, the Series 2004-1 Collection Subaccount may be
invested by the Servicer (as agent for the Administrator) in Eligible
Investments. All such investments shall at all times be and remain credited to
an account, which if applicable, may be a subaccount of the Series 2004-1
Collection Subaccount (the "SERIES 2004-1 SECURITIES ACCOUNT") subject to a
securities control agreement in form and substance satisfactory to the
Administrator. All income or other gain from investment of monies deposited in
or credited to the Series 2004-1 Securities Account shall be deposited in or
credited to the Series 2004-1 Securities Account immediately upon receipt, and
any loss resulting from such investment shall be charged to the Series 2004-1
Securities Account. Funds on deposit in the Series 2004-1 Securities Account
shall be invested in Eligible Investments that will mature no later than the
Business Day immediately preceding the next Distribution Date. None of the
Administrator or the Committed Purchaser shall be held liable in any way by
reason of any insufficiency in the Series 2004-1 Securities Account resulting
from any investment loss on any Eligible Investments.

                                   ARTICLE IV

                            DISTRIBUTIONS AND REPORTS

          Article IV of the Agreement (except for any portion thereof relating
to another Series) shall read in its entirety herein as follows and the
following shall be exclusively applicable to the VFC Certificates:

          SECTION 4A.1. DISTRIBUTIONS. (a) On each Distribution Date, the
Trustee shall distribute to the Administrator and the Administrator shall
further distribute to the Committed Purchaser the amount to be distributed to
the Committed Purchaser pursuant to Article III.

          (b) All allocations and distributions hereunder shall be in accordance
with the Monthly Settlement Statement, upon which the Trustee may conclusively
rely, and shall be made in accordance with the provisions of Section 11.4 hereof
and subject to Section 3.1(h) of the Agreement.

          SECTION 4A.2. Reserved.

          SECTION 4A.3. STATEMENTS AND NOTICES. (a) MONTHLY SETTLEMENT
STATEMENTS. On each Settlement Report Date, the Servicer shall deliver to the
Trustee and the Administrator (commencing with the Settlement Report Date
occurring on April 17, 2004) a Monthly Settlement Statement in the Form of
Exhibit D setting forth, among other things, the Default Ratio, Delinquency
Ratio and Dilution Ratio and the components of the calculation thereof, and the
Series 2004-1 Monthly Principal Payment, each as calculated for the Accrual
Period ending immediately prior to such Settlement Report Date. The Trustee
shall have no obligation whatsoever to verify the accuracy of any information
contained within the Monthly Settlement Statement, including any calculations
contained therein. A copy of any such items may be obtained by any holder of a
Certificate upon a written request delivered to the Trustee at the

                                       32
<Page>

Corporate Trust Office. Where the Servicer is required to provide written
instructions to the Trustee in respect of the distributions and allocations to
be made on a Distribution Date, the delivery by the Servicer to the Trustee of
the Monthly Settlement Statement with all such instructions contained therein on
the Settlement Report Date shall satisfy the Servicers obligation to provide
written instructions.

          (b)     ANNUAL CERTIFICATEHOLDERS' TAX STATEMENT. On or before January
31 of each calendar year (or such earlier date as required by applicable law),
beginning with calendar year 2005, the Company on behalf of the Trustee shall
furnish, or cause to be furnished, to the Committed Purchaser, a statement
prepared by the Company containing the aggregate amount distributed to the
Committed Purchaser for such calendar year or the applicable portion thereof,
together with such other information as is required to be provided by an issuer
of indebtedness under the Internal Revenue Code and such other customary
information as the Company deems necessary or desirable to enable the Purchasers
to prepare their tax returns. Such obligation of the Company shall be deemed to
have been satisfied to the extent that substantially comparable information
shall have been prepared by the Servicer and provided to the Trustee or the
Administrator and to the Committed Purchaser, in each case pursuant to any
requirements of the Internal Revenue Code as from time to time in effect.

          (c)     EARLY AMORTIZATION EVENT/DISTRIBUTION OF PRINCIPAL NOTICES.
Upon the occurrence of an Early Amortization Event with respect to Series
2004-1, the Company or the Servicer, as the case may be, shall give prompt
written notice thereof to the Trustee and the Administrator. As promptly as
reasonably practicable after its receipt of notice of the occurrence of an Early
Amortization Event with respect to Series 2004-1, the Trustee shall give notice
to the Administrator.

                                    ARTICLE V

                      ADDITIONAL EARLY AMORTIZATION EVENTS

          SECTION 5.1 ADDITIONAL EARLY AMORTIZATION EVENTS. If any one of the
events specified in Section 7.1 of the Agreement (after the expiration of any
grace periods or consents applicable thereto) or any one of the following events
(each, an "EARLY AMORTIZATION EVENT") shall occur during the Series 2004-1
Revolving Period with respect to the Series 2004-1 Interests:

          (a) failure on the part of the Servicer to make or direct any payment
or deposit under any Pooling and Servicing Agreement required to be made or
directed by it or failure by the Company to make any payment or deposit required
to be made by it under any Pooling and Servicing Agreement which failure
continues, in either case, for two Business Days after the date such payment,
deposit or amount is required to be made or directed;

          (b) failure on the part of the Company to duly observe or perform any
of the covenants or agreements of the Company set forth in Section 2.7 and 2.8
of the Agreement or (ii)

                                       33
<Page>

failure on the part of the Company or the Support Provider duly to observe or
perform any (other than as described in any other paragraph of this Section 5.1)
other covenants or agreements of the Company or the Support Provider (as
applicable) set forth in any Pooling and Servicing Agreement, which failure
continues unremedied until 10 Business Days after the earlier of the date on
which a Responsible Officer of the Company or the Support Provider has knowledge
thereof and the date on which written notice of such failure, requiring the same
to be remedied, shall have been given to the Company or the Support Provider (as
applicable) by the Trustee, or to the Company or the Support Provider (as
applicable) and the Trustee by the Administrator;

          (c) any representation or warranty made or deemed made by the Company
or the Support Provider in any Pooling and Servicing Agreement to or for the
benefit of the Committed Purchaser (i) proves to have been incorrect in any
material respect when made or when deemed made and (ii) continues to be
materially incorrect until 10 Business Days after the earlier of the date on
which a Responsible Officer of the Company or the Servicer has knowledge thereof
and the date on which notice of such failure, requiring the same to be remedied,
has been given to the Company or the Support Provider (as applicable) by the
Trustee, or to the Company or the Support Provider (as applicable) and the
Trustee by the Administrator;

          (d) a Servicer Default with respect to the Servicer shall have
occurred and be continuing or the Servicer shall have resigned;

          (e) a Purchase Termination Event (as defined in any Receivables Sale
Agreement) shall have occurred and be continuing under such Receivables Sale
Agreement or any Seller shall for any reason cease to transfer (other than in
accordance with the terms of the applicable Receivables Sale Agreement), or
cease to have the legal capacity to transfer, or otherwise be incapable of
transferring Receivables pursuant to the applicable Receivables Sale Agreement;

          (f) a USSC Change in Control shall have occurred, or any Seller or the
Servicer shall cease to be a directly or indirectly wholly-owned, Subsidiary of
USSC;

          (g) USFS, USSC or any one of USSC's wholly-owned direct or indirect
subsidiaries shall cease to own 100% of the ordinary shares of the Company, free
and clear of any Lien, other than any Lien in favor of the administrative agent
under the Credit Agreement; provided, that 30% of the voting rights with respect
to such shares shall be held by the independent director as nominee;

          (h) any of the Agreement, the Servicing Agreement, this Supplement or
the Receivables Sale Agreements or any material provision of any of the
foregoing shall cease, for any reason, to be in full force and effect, or to be
the legally valid, binding and enforceable obligation of the Company, the
Servicer, the Support Provider or any Seller or the Company, any Seller, the
Support Provider or the Servicer or any Affiliate of any thereof shall so assert
in writing;

                                       34
<Page>

          (i) the Trust shall for any reason cease to have a valid and perfected
first priority undivided ownership or security interest in the Trust Assets
(subject to no other Liens), or any of USSC, USFS, the Company or any Affiliate
of any one thereof shall so assert in writing;

          (j) (i) there shall have been filed against the Company or the Trust a
notice of federal tax Lien from the Internal Revenue Service and 40 days shall
have elapsed without such notice having been effectively withdrawn or such Lien
having been released or discharged (ii) any formal step is taken to terminate
any Plan, other than a standard termination under Section 4041(b) of ERISA, or a
contribution failure has occurred with respect to any Plan sufficient to give
rise to a Lien under Section 302(f) of ERISA or (iii) there shall have been
filed against USSC, USFS, the Company, any Seller or the Trust a notice of any
other Lien the existence of which could reasonably be expected to have a
Material Adverse Effect on the business, operations or financial condition of
such Person, and 40 days shall have elapsed without such notice having been
effectively withdrawn or such Lien having been released or discharged;

          (k) an event of default under the Credit Agreement shall have occurred
and the lender parties thereto shall have caused the indebtedness thereunder to
come due prior to its stated maturity;

          (l) default by the Company in the payment of an Indebtedness when due
or the performance of any term, provision or condition contained in any
agreement under which any such Indebtedness was created or is governed, the
effect of which is to cause, or to permit the holder or holders of such
Indebtedness to cause, such Indebtedness to become due prior to its stated
maturity; or any such Indebtedness of the Company shall be declared to be due
and payable or required to be prepaid (other than by a regularly scheduled
payment) prior to the date of maturity thereof; or (ii) default by USSC or USFS
in the payment of an Indebtedness equal to or in excess of $25,000,000 or the
performance of any term, provision or condition contained in any agreement under
which any such Indebtedness was created or is governed and the lender parties
thereto shall have caused such Indebtedness to come due prior to its stated
maturity;

          (m) any action, suit, investigation or proceeding at law or in equity
(including, without limitation, injunctions, writs or restraining orders) shall
be brought or commenced or filed by or before any arbitrator, court or
Governmental Authority against the Company or any of its properties, revenues or
rights which could reasonably be expected to have a Material Adverse Effect;

          (n) one or more judgments for the payment of money shall be rendered
against the Company;

          (o) as at the end of any Accrual Period, the average Delinquency Ratio
for the three preceding Accrual Periods (including such Accrual Period then
ended) shall exceed the greater of (x)125% of the highest three-month rolling
average Delinquency Ratio for the period from September 1, 2002 through August
31, 2003 and (y) 150% of the average of the three-

                                       35
<Page>

month rolling average Delinquency Ratio for the period from September 1, 2002
through August 31, 2003;

          (p) as at the end of any Accrual Period, the average Default Ratio for
the three preceding Accrual Periods (including such Accrual Period then ended)
shall exceed 1.10%;

          (q) as at the end of any Accrual Period, the average Dilution Ratio
for the three preceding Accrual Periods (including such Accrual Period then
ended) shall exceed 8.75%;

          (r) as at the end of any fiscal quarter of USSC or USI, the Leverage
Ratio shall exceed 3.0 to 1.0;

          (s) as of any day, Consolidated Net Worth shall be less than (i)
$450,000,000 minus (ii) amounts permitted to be expended by USI in connection
with repurchases or redemptions of its capital stock under Section 6.10 of the
Credit Agreement, plus (iii) 50% of Consolidated Net Income (if positive) earned
in each fiscal quarter beginning with the fiscal quarter ending June 30, 2003,
plus (iv) 50% of the Net Cash Proceeds resulting from issuances of the capital
stock of USI or any Subsidiary of USI;

          (t) as of the end of any fiscal quarter of USSC or USI, the Fixed
Charge Coverage Ratio shall be less than 1.25 to 1.00;

          (u) the Series 2004-1 Allocated Receivables Amount shall be less than
the Series 2004-1 Target Receivables Amount for more than two consecutive
Business Days; or

          (v) any Bankruptcy Event shall occur with respect to the Support
Provider, and in the case of any such event arising from the commencement of an
involuntary proceeding, case or action, such event remains undismissed,
undischarged or unbonded for a period of 30 days;

then, in the case of (x) any event described in Section 7.1(a) of the Agreement,
Section 6.1(g) of any Receivables Sale Agreement or Section 6.1(e) of the
Servicing Agreement, after the applicable grace period (if any) set forth in
such Section, automatically without any notice or action on the part of the
Trustee or Administrator, an early amortization period shall immediately
commence or (y) any other event described above or in Section 7.1 of the
Agreement, after the expiration of the applicable grace period (if any) set
forth in such subsections, the Administrator may, by written notice then given
to the Company and the Servicer, declare that an early amortization period has
commenced as of the date of such notice with respect to Series 2004-1 (any such
period under clause (x) or (y) above, an "EARLY AMORTIZATION PERIOD").

                                   ARTICLE VI

                                  SERVICING FEE

          SECTION 6.1 SERVICING COMPENSATION. A periodic servicing fee (the
"SERIES 2004-1 PERIODIC SERVICING FEE") shall be payable to the Servicer on each
Distribution Date for

                                       36
<Page>

the preceding Accrual Period in an amount equal to the product of (a) the
Servicing Fee and (b) a fraction the numerator of which is the daily average
Series 2004-1 Invested Amount for such Accrual Period and the denominator of
which is the sum of (i) the daily average Aggregate Invested Amounts.

                                   ARTICLE VII

                             CHANGE IN CIRCUMSTANCES

          SECTION 7.1 ILLEGALITY. Notwithstanding any other provision herein, if
any Change in Law shall make it unlawful for any Affected Party to make or
maintain its portion of the VFC Certificateholder's Interest (or funding thereof
through a Program Support Agreement) in any Eurodollar Tranche and such Affected
Party shall notify in writing the Administrator, the Trustee and the Company,
then the portion of each Eurodollar Tranche applicable to such Affected Party
shall thereafter be calculated by reference to the Base Rate. If any such change
in the method of calculating interest occurs on a day which is not the last day
of the Rate Period with respect to any Eurodollar Tranche, the Company shall pay
to the Administrator for the account of such Affected Party the amounts, if any,
as may be required pursuant to Section 7.4.

          SECTION 7.2 INCREASED COSTS. If any Change in Law (except with respect
to Taxes which shall be governed by Section 7.3) 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 Affected Party (except any such
     reserve requirement reflected in the Euro-Rate); or

               (ii) impose on any Affected Party or the London interbank market
     any other condition affecting the Transaction Documents or the funding of
     Eurodollar Tranches by such Affected Party;

and the result of any of the foregoing shall be to increase the cost to such
Affected Party of making, converting into, continuing or maintaining Eurodollar
Tranches (or maintaining its obligation to do so) or to reduce any amount
received or receivable by such Affected Party hereunder or under any Program
Support Agreement (whether principal, interest or otherwise), then the Company
will pay to such Affected Party such additional amount or amounts as will
compensate such Affected Party for both increased costs and maintenance of
bargained for yield.

          (a) If any Affected Party determines that any Change in Law regarding
capital requirements has or would have the effect of reducing the rate of return
on such Affected Party's capital or the capital of any corporation controlling
such Affected Party as a consequence of its obligations hereunder or under any
Program Support Agreement to a level below that which such Affected Party or
such corporation could have achieved but for such Change in Law (taking into
consideration such Affected Party's or such corporation's policies with respect
to capital adequacy), then from time to time, the Company shall pay to such
Affected Party such additional

                                       37
<Page>

amount or amounts as will compensate such Affected Party for both increased
costs and bargained for yield.

          (b) A certificate of an Affected Party setting forth in reasonable
detail the amount or amounts necessary to compensate such Affected Party as
specified in subsections (a) and (b) of this Section 7.2 shall be delivered to
the Company (with a copy to the Administrator) and shall be conclusive absent
manifest error provided that such Certificate is delivered in good faith and in
a manner generally consistent with such Affected Party's standard practice. The
agreements in this Section shall survive the termination of this Supplement and
the Agreement and the payment of all amounts payable hereunder and thereunder
for a period of nine months.

          (c) Failure or delay on the part of any Affected Party to demand
compensation pursuant to this Section 7.2 shall not constitute a waiver of such
Affected Party's right to demand such compensation; PROVIDED that the Company
shall not be required to compensate an Affected Party pursuant to this Section
7.2 for any increased costs or reductions incurred more than 270 days prior to
the date that such Affected Party notifies the Company of the Change in Law
giving rise to such increased costs or reductions and of such Affected Party'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.

          (d) For avoidance of doubt any increase in cost and/or reduction in
yield caused by regulatory capital allocation adjustments due to Financial
Accounting Standards Board's Interpretation 46 (or any future statement or
interpretation issued by the Financial Accounting Standards Board or any
successor thereto) shall be covered by this Section 7.2.

          SECTION 7.3 TAXES. (a) Any and all payments by or on account of any
obligation of the Company hereunder shall be made free and clear of and without
deduction for any Indemnified Taxes or Other Taxes; PROVIDED that if the Company
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 7.3) the Administrator or the Committed
Purchaser receives an amount equal to the sum that it would have received had no
such deductions been made, (ii) the Company shall make such deductions and (iii)
the Company shall pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.

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

          (c) Subject to paragraph (e) of this Section 7.3, the Company shall
indemnify the Administrator and the Committed Purchaser within the later of 10
days after written demand therefor and the Distribution Date next following such
demand for the full amount of any Indemnified Taxes or Other Taxes paid by the
Administrator or the Committed Purchaser on or

                                       38
<Page>

with respect to any payment by or on account of any obligation of the Company
hereunder or under any other Transaction Document (including Indemnified Taxes
or Other Taxes imposed or asserted on or attributable to amounts payable under
this Section 7.3) and any penalties, interest and reasonable 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 the Administrator or the Committed
Purchaser shall be conclusive absent manifest error. The agreements in this
subsection shall survive the termination of this Supplement and the Agreement
and the payment of all amounts payable hereunder and thereunder.

          (d) As soon as practicable after any payment of Indemnified Taxes or
Other Taxes by the Company to a Governmental Authority, the Company shall
deliver to the Administrator 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 Administrator.

          (e) The Administrator and the Committed Purchaser shall (but with
respect to any Indemnified Tax or Other Tax arising from a Change in Law, only
to the extent the Administrator or such Purchaser is legally able to do so)
deliver to the Company (with a copy to the Administrator) such properly
completed and executed documentation prescribed by applicable law and reasonably
requested by the Company on the later of (i) 30 Business Days after such request
is made and the applicable forms are provided to the Committed Purchaser or (ii)
30 Business Days before prescribed by applicable law as will permit such
payments to be made without withholding or with an exemption from or reduction
of Indemnified Taxes or Other Taxes. Failure to timely provide such
documentation to the Company shall relieve the Company of any indemnification
responsibility under this Section 7.3.

          (f) If the Administrator or the Committed Purchaser receives a refund
solely in respect of Indemnified Taxes or Other Taxes, it shall pay over such
refund to the Company to the extent that such Administrator or Purchaser has
already received indemnity payments or additional amounts pursuant to this
Section 7.3 with respect to such Indemnified Taxes or Other Taxes giving rise to
the refund, net of all out-of-pocket expenses and without interest (other than
interest paid by the relevant Governmental Authority with respect to such
refund); PROVIDED, HOWEVER, that the Company shall, upon request of the
Administrator or the Committed Purchaser, repay such refund (plus interest or
other charges imposed by the relevant Governmental Authority) to the
Administrator or the Committed Purchaser if the Administrator or the Committed
Purchaser is required to repay such refund to such Governmental Authority.
Nothing contained herein shall require the Administrator or the Committed
Purchaser to make its tax returns (or any other information relating to its
taxes which it deems confidential) available to the Company or any other Person.

          SECTION 7.4 BREAK FUNDING PAYMENTS. The Company agrees to indemnify
the Committed Purchaser and to hold the Committed Purchaser harmless from any
loss or expense

                                       39
<Page>

which the Committed Purchaser may sustain or incur as a consequence of (a)
default by the Company in making a borrowing of a Eurodollar Tranche after the
Company has given irrevocable notice requesting the same in accordance with the
provisions of this Supplement, or (b) default by the Company in making any
prepayment in connection with a Decrease after the Company has given irrevocable
notice thereof in accordance with the provisions of Section 2.7 or (c) the
making of a prepayment of a Eurodollar Tranche or CP Tranche prior to the
termination of the Rate Period for such Eurodollar Tranche or CP Tranche, as
applicable. Such indemnification may include an amount equal to the excess, if
any, of (i) the amount of interest which would have accrued on the amount so
prepaid or not so borrowed, for the period from the date of such prepayment or
of such failure to borrow to the last day of the Rate Period (or in the case of
a failure to borrow the Rate Period that would have commenced on the date of
such prepayment or of such failure) in each case at the Euro-Rate or CP Rate, as
applicable, for such Eurodollar Tranche or CP Tranche, as applicable, provided
for herein over (ii) the amount of interest (as reasonably determined by the
Committed Purchaser) which would have accrued to the Committed Purchaser on such
amount by placing such amount on deposit for a comparable period with leading
banks in the interbank eurodollar market. This covenant shall survive the
termination of this Supplement and the Agreement and the payment of all amounts
payable hereunder and thereunder. A certificate as to any additional amounts
payable pursuant to the foregoing sentence, showing in reasonable detail the
calculation thereof, submitted by the Committed Purchaser to the Company shall
be conclusive absent manifest error.

          SECTION 7.5 MITIGATION OBLIGATIONS. (a) If any Liquidity Purchaser
requests compensation under Section 7.2, or if the Company is required to pay
any additional amount to any such Liquidity Purchaser or any Governmental
Authority for the account of any Alternate Investor pursuant to Section 7.3,
then such Liquidity Purchaser shall use reasonable efforts to designate a
different lending office for funding or booking its obligations under this
Supplement and the Agreement or to assign its rights and obligations hereunder
to another of its offices, branches or affiliates, if, in the judgment of such
Liquidity Purchaser, such designation or assignment (i) would eliminate or
reduce amounts payable pursuant to Section 7.2 or 7.3, as the case may be, in
the future and (ii) would not subject such Liquidity Purchaser to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such
Liquidity Purchaser. The Company hereby agrees to pay all reasonable costs and
expenses incurred by any Liquidity Purchaser in connection with any such
designation or assignment.

          (b) If any Liquidity Purchaser requests compensation under Section
7.2, or if the Company is required to pay any additional amount to such
Liquidity Purchaser or any Governmental Authority for the account of such
Liquidity Purchaser pursuant to Section 7.3, or if such Liquidity Purchaser
defaults in its obligations under the Liquidity Agreement, then the Company may,
at its sole expense and effort, upon notice to such Liquidity Purchaser and the
Administrator require such Liquidity Purchaser to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in
Section 11.11), all its interests, rights and obligations under the Liquidity
Agreement to an assignee that shall assume such obligations (which assignee may
be another Liquidity Purchaser, if a Liquidity Purchaser accepts such
assignment); PROVIDED that (i) the Company shall have received the prior written
consent of the

                                       40
<Page>

Administrator, (ii) such Liquidity Purchaser shall have received payment of
all amounts payable to it hereunder and under the Liquidity Agreement, from the
assignee or the Company (in the case of all amounts payable hereunder) and (iii)
in the case of any such assignment resulting from a claim for compensation under
Section 7.2 or payments required to be made pursuant to Section 7.3, such
assignment will result in a reduction in such compensation or payments. A
Liquidity Purchaser shall not be required to make any such assignment and
delegation if, prior thereto, as a result of a waiver by such Liquidity
Purchaser or otherwise, the circumstances entitling the Company to require such
assignment and delegation cease to apply.

                                  ARTICLE VIII

                    REPRESENTATIONS AND WARRANTIES, COVENANTS

          SECTION 8.1 REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE
SERVICER. The Company and the Servicer each hereby represents and warrants to
the Trustee, the Administrator and each of the Purchasers that each and every of
their respective representations and warranties contained in the Agreement is
true and correct in all material respects as of the Issuance Date and as of the
date of each Increase (except to the extent that any such representation or
warranty is expressly made as of another date).

          SECTION 8.2 COVENANTS OF THE COMPANY AND THE SERVICER. The Company and
the Servicer hereby agree, in addition to their obligations under the Agreement
and the Servicing Agreement, that:

          (a) they shall observe in all material respects each and every of
their respective covenants (both affirmative and negative) contained in the
Agreement, the Servicing Agreement, this Supplement and all other Transaction
Documents to which each is a party;

          (b) they shall afford the Trustee, Administrator or any
representatives of the Trustee or the Administrator access to all records
relating to the Receivables at any reasonable time during regular business
hours, upon reasonable prior notice (and without prior notice if an Early
Amortization Event has occurred), for purposes of inspection and shall permit
the Trustee, Administrator or any representative of the Trustee or the
Administrator to visit any of the Company's or the Servicer's, as the case may
be, offices or properties during regular business hours and as often as may
reasonably be desired to discuss the business, operations, properties, financial
and other conditions of the Company or the Servicer with their respective
officers and employees and with their independent certified public accountants;
PROVIDED that the Administrator shall provide the Company or the Servicer, as
the case may be, with reasonable notice prior to any such contact and shall give
the Company or the Servicer the reasonable opportunity to participate in such
discussions; and

          (c) neither the Company nor the Servicer shall take any action, nor
permit the Seller to take any action, requiring the satisfaction of the Rating
Agency Condition pursuant to any Transaction Document without the prior written
consent of the Majority Purchasers.

                                       41
<Page>

          SECTION 8.3 COVENANTS OF THE SERVICER. The Servicer hereby agrees
that:

          (a) it shall observe each and all of its respective covenants (both
affirmative and negative) contained in the Pooling and Servicing Agreements in
all material respects;

          (b) it shall provide to the Administrator, simultaneously with
delivery to the Trustee, all reports, notices, certificates, statements and
other documents required to be delivered to the Trustee pursuant to the
Agreement, the Servicing Agreement and the other Transaction Documents and
furnish to the Administrator promptly after receipt thereof a copy of each
material notice, material demand or other material communication (excluding
routine communications) received by or on behalf of the Company or the Servicer
with respect to the Transaction Documents;

          (c) it shall provide notice to the Administrator of the appointment of
a Successor Servicer pursuant to Section 6.2 of the Servicing Agreement; and

          (d) it shall operate in good faith to allow the Trustee to use the
Servicer's available facilities, equipment, leasehold agreements, data systems,
records, files and expertise upon the Servicer's termination or default.

          SECTION 8.4 OBLIGATIONS UNAFFECTED. The obligations of the Company and
the Servicer to the Administrator and the Committed Purchaser under this
Supplement shall not be affected by reason of any invalidity, illegality or
irregularity of any of the Receivables or any sale of any of the Receivables.

                                   ARTICLE IX

                              CONDITIONS PRECEDENT

          SECTION 9.1 CONDITIONS PRECEDENT TO EFFECTIVENESS OF SUPPLEMENT. This
Supplement shall become effective on the date (the "EFFECTIVE DATE") on which
the following conditions precedent have been satisfied:

          (a) DOCUMENTS. The Administrator shall have received, with a copy for
the Committed Purchaser, true and complete copies of (i) this Supplement,
executed by a duly authorized officer of each of the Company, the Servicer, the
Trustee, the Administrator and the Committed Purchaser and (ii) each of the
Agreement, the Servicing Agreement and each of the Receivables Sale Agreements,
duly executed by each of the parties thereto, (iii) all documents required to be
delivered in connection with the foregoing, (iv) a VFC Certificate Series 2004-1
in the original principal amount of $25,000,000 issued in favor of the Committed
Purchaser and duly executed and delivered by the Company and duly authenticated
by the Trustee, and (v) evidence satisfactory to the Administrator that the
"Commitment" of Bank One, NA under Series 2003-1 has been reduced to
$127,500,000.

                                       42
<Page>

          (b) ORGANIZATIONAL DOCUMENTS, ORGANIZATIONAL PROCEEDINGS. The
Committed Purchaser shall have received from the Company, each Seller and the
Servicer, true and complete copies of:

               (i) the articles of association, articles of incorporation or
     other formation documents, including all amendments thereto, of such
     Person, certified as of a recent date by the Secretary of State or other
     appropriate authority of the state of formation or incorporation, as the
     case may be, and a certificate of compliance, of status or of good
     standing, as and to the extent applicable, of each such Person as of a
     recent date, from the Secretary of State or other appropriate authority of
     such jurisdiction;

               (ii) a certificate of the Secretary or an Assistant Secretary of
     each such Person, dated the Effective Date and certifying (A) that attached
     thereto is a true and complete copy of the bylaws and articles of
     incorporation or articles of association (or equivalent organizational
     documents) of each such Person, as in effect on the Effective Date and at
     all times since a date prior to the date of the resolutions described in
     clause (B) below, (B) that attached thereto is a true and complete copy of
     the resolutions, in form and substance reasonably satisfactory to the
     Administrator, of the Board of Directors of each such Person or committees
     thereof (and corresponding resolutions of authority for any such committee)
     authorizing the execution, delivery and performance of the Series 2004-1
     Transaction Documents to which it is a party and the transactions
     contemplated thereby, and that such resolutions have not been amended,
     modified, revoked or rescinded and are in full force and effect, (C) that
     the articles of association, articles of incorporation or other formation
     documents of each such Person have not been amended since the date of the
     last amendment thereto shown on the certificate of good standing (or its
     equivalent) furnished pursuant to clause (i) above and (D) as to the
     incumbency and specimen signature of each officer executing any Series
     2004-1 Transaction Documents or any other document delivered in connection
     herewith or therewith on behalf of each such Person; and

               (iii) a certificate of another officer as to the incumbency and
     specimen signature of the Secretary or Assistant Secretary executing the
     certificate pursuant to clause (ii) above.

          (c) GOOD STANDING CERTIFICATES. The Committed Purchaser shall have
received copies of certificates of compliance, of status or of good standing,
dated as of a recent date, from the Secretary of State or other appropriate
authority of such jurisdiction, with respect to the Company, the Servicer and
each Seller, in each State where the ownership, lease or operation of property
or the conduct of business requires it to qualify as a foreign corporation or
limited liability company, except where the failure to so qualify would not
reasonably be expected to have a Material Adverse Effect.

          (d) LEGAL OPINIONS. The Committed Purchaser shall have received
opinions of counsel to the Company and the Servicer, dated the Issuance Date
(or, dated as of an earlier date,

                                       43
<Page>

with a reliance letter dated as of the Issuance Date as agreed by the Committed
Purchaser and the Servicer), as to corporate, federal tax (tax status of the VFC
Certificates as debt), bankruptcy ("true sale" and "non-substantive
consolidation"), perfection of security and/or ownership interests and other
matters in form and substance reasonably acceptable to the Committed Purchaser
and their counsel.

          (e) FEES. The Committed Purchaser shall have received payment of all
fees and other amounts due and payable to it on or before the Effective Date.

          (f) MATERIAL ADVERSE CHANGE. No material adverse change shall have
occurred with respect to the business, operations, or condition (financial or
otherwise) of USSC and its Subsidiaries taken as a whole since September 30,
2003.

          (g) LOCKBOX AGREEMENTS. The Committed Purchaser shall have received
Lockbox Agreements for each of the Lockbox Accounts identified on Schedule 2 in
form and substance reasonably satisfactory to the Committed Purchaser, duly
executed by the respective parties thereto.

          (h) FEE LETTER. The Committed Purchaser shall have received the Fee
Letter, duly executed by the parties thereto.

          (i) MONTHLY SETTLEMENT REPORT. The Committed Purchaser shall have
received a Monthly Settlement Report as of February 28, 2004.

                                    ARTICLE X

                                   [RESERVED]

                                   ARTICLE XI

                                  MISCELLANEOUS

          SECTION 11.1 RATIFICATION OF AGREEMENT. As supplemented by this
Supplement, the Agreement is in all respects ratified and confirmed and the
Agreement as so supplemented by this Supplement shall be read, taken and
construed as one and the same instrument.

          SECTION 11.2 GOVERNING LAW. (a) THIS SUPPLEMENT SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

          (b) CONSENT TO JURISDICTION. EACH OF THE COMPANY AND THE SERVICER
HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE

                                       44
<Page>

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

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

          SECTION 11.3 FURTHER ASSURANCES. Each of the Company, the Servicer and
the Trustee agrees, from time to time, to do and perform any and all acts and to
execute any and all further instruments required or reasonably requested by the
Administrator more fully to effect the purposes of this Supplement and the sale
of the VFC Certificates hereunder, including, without limitation, in the case of
the Company and the Servicer, the execution of any financing or registration
statements or similar documents or notices or continuation statements relating
to the Receivables and the other Trust Assets for filing or registration under
the provisions of the UCC or similar legislation of any applicable jurisdiction.

          SECTION 11.4 PAYMENTS. To the extent proper payment instructions are
provided, each payment to be made hereunder shall be made on the required
payment date in lawful money of the United States and in immediately available
funds, if to the Committed Purchaser, at the office of the Administrator set
forth in Section 11.9.

                                       45
<Page>

          SECTION 11.5 COSTS AND EXPENSES. The Company agrees to pay all
reasonable out-of-pocket costs and expenses of the Administrator (including,
without limitation, reasonable fees and disbursements of one counsel to the
Administrator) in connection with (i) the preparation, execution and delivery of
this Supplement, the Agreement and the other Transaction Documents and
amendments or waivers of any such documents and (ii) the enforcement by the
Administrator of the obligations and liabilities of the Company and the Servicer
under the Agreement, this Supplement, the other Transaction Documents or any
related document; PROVIDED that any payments made by the Company pursuant to
this subsection shall be made solely from funds available to the Company which
are not otherwise needed to be applied to the payment of any amounts (other than
amounts payable to the Company) pursuant to any Pooling and Servicing
Agreements, shall be non-recourse other than with respect to proceeds in excess
of the proceeds to make such payment, and shall not constitute a claim against
the Company to the extent that insufficient proceeds exist to make such payment.

          SECTION 11.6 NO WAIVER, CUMULATIVE REMEDIES. No failure to exercise
and no delay in exercising, on the part of the Trustee, the Administrator or the
Committed Purchaser, any right, remedy, power or privilege hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or privilege.
The rights, remedies, powers and privileges herein provided are cumulative and
not exhaustive of any rights, remedies, powers and privileges provided by law.

          SECTION 11.7 AMENDMENTS. (a) Subject to subsection (c) of this Section
11.7, this Supplement may be amended in writing from time to time by the
Servicer, the Company and the Trustee, with the consent of the Administrator but
without the consent of any holder of any outstanding VFC Certificate, to cure
any ambiguity, to correct or supplement any provisions herein which may be
inconsistent with any other provisions herein or to add any other provisions to
or change in any manner or eliminate any of the provisions with respect to
matters or questions raised under this Supplement which shall not be
inconsistent with the provisions of any Pooling and Servicing Agreement;
PROVIDED, HOWEVER, that such action shall not, as evidenced by an Officer's
Certificate or, to the extent in the reasonable view of the Company, a question
of law exists, an Opinion of Counsel delivered to the Trustee, adversely affect
in any material respect the interests of the VFC Certificateholder, including
without limitation the tax status of the VFC Certificates or of the Trust. The
Trustee may, but shall not be obligated to, enter into any such amendment
pursuant to this paragraph or paragraph (b) below which affects the Trustee's
rights, duties or immunities under any Pooling and Servicing Agreement or
otherwise.

          (b) Subject to subsection (c) of this Section 11.7, this Supplement
may also be amended in writing from time to time by the Servicer, the Company
and the Trustee with the consent of the Administrator for the purpose of adding
any provisions to or changing in any manner or eliminating any of the provisions
of this Supplement or of modifying in any manner the rights of the VFC
Certificateholder (including, without limitation, the acceleration of the
payment of sums payable to or for the account of the Committed Purchaser under
any provision of this Supplement); PROVIDED, HOWEVER, that no such amendment
shall, unless signed or

                                       46
<Page>

consented to in writing by the Committed Purchaser, (i) extend the time for
payment, or reduce the amount, of any sum payable to or for the account of the
Committed Purchaser under any provision of this Supplement or extend the Series
2004-1 Termination Date, (ii) subject the Committed Purchaser to any additional
obligation (including, without limitation, any change in the determination of
any amount payable by any Purchaser), (iii) increase the Purchase Limit or
change the amount of any interest or fees or the voting requirements required
for any action under this subsection or any other provision of this Supplement,
(iv) change the tax characteristics of the VFC Certificates or of the Trust, (v)
consent to or permit the assignment or transfer by the Company of any of its
rights or obligations under this Supplement or the Agreement; (vi) change the
definition of "Eligible Receivable," "Default Ratio," "Delinquency Ratio," or
"Dilution Ratio" or "Aggregate Receivables Amount"; or (vii) amend or modify any
defined term (or any defined term used directly or indirectly in such defined
term) used in the foregoing clauses (i) through (vi) in a manner that would
circumvent the intention of the restrictions set forth in such clauses.

          (c) Any amendment hereof can be effected without the Administrator's
being party thereto; PROVIDED, HOWEVER, that no such amendment, modification or
waiver of this Supplement that affects rights or duties of the Administrator
shall be effective unless the Administrator shall have given its prior written
consent thereto.

          (d) No amendment hereof shall be effective until the Rating Agency
Condition is satisfied with respect thereto.

                  SECTION 11.8 SEVERABILITY. If any provision hereof is void or
unenforceable in any jurisdiction, such voidness or unenforceability shall not
affect the validity or enforceability of (i) such provision in any other
jurisdiction or (ii) any other provision hereof in such or any other
jurisdiction.

          SECTION 11.9 NOTICES. All notices, requests and demands to or upon any
party hereto to be effective shall be given (i) in the case of the Company, the
Servicer and the Trustee, in the manner set forth in Section 10.4 of the
Agreement and (ii) in the case of the Administrator and the Committed Purchaser
in writing, and, unless otherwise expressly provided herein, shall be deemed to
have been duly given or made when delivered by hand or three days after being
deposited in the mail, postage prepaid, or, in the case of facsimile notice,
when received, addressed as follows in the case of the Administrator, and the
Committed Purchaser; or to such other address as may be hereafter notified by
the respective parties hereto:

     If to the Administrator:

                  Fifth Third Bank,
                  as Administrator
                  38 Fountain Square Plaza
                  M.D. 109047
                  Cincinnati, Ohio 45263

                                       47
<Page>

                  Attention:  Judy Huls
                  Telephone:  513-579-4224
                  Facsimile:  513-534-0875

     If to the Committed Purchaser:

                  Fifth Third Bank,
                  as Administrator
                  38 Fountain Square Plaza
                  M.D. 109047
                  Cincinnati, Ohio 45263
                  Attention:  Robert Finley
                  Telephone:  513-534-4870
                  Facsimile:  513-579-4270

                  (with a copy to the Administrator)

          SECTION 11.10 SUCCESSORS AND ASSIGNS. This Supplement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns, except that the Company may not assign or transfer any
of its rights under this Supplement without the prior written consent of the
Administrator and the Committed Purchaser may not assign or transfer any of its
rights under this Supplement except as described below. The Committed Purchaser
may assign its rights under this Supplement without the prior written consent of
the Company to Fifth Third, any Affiliate of Fifth Third (other than a director
or officer of Fifth Third), any Liquidity Purchaser or other Program Support
Provider or any Person that is: (i) in the business of issuing Commercial Paper
and (ii) associated with or administered by Fifth Third or any Affiliate of
Fifth Third. The Administrator shall give prior written notice of any assignment
of the Committed Purchaser's rights and obligations (including ownership of the
VFC Certificate to any Person other than a Program Support Provider). The
Committed Purchaser may at any time grant to one or more Liquidity Providers
party to the Liquidity Agreement, or to any other Program Support Provider,
participating interests in its Series 2004-1 Purchaser Invested Amount. In the
event of any such grant by the Committed Purchaser of a participating interest
to a Liquidity Purchaser or other Program Support Provider, the Committed
Purchaser shall remain responsible for the performance of its obligations
hereunder. The Company agrees that each Liquidity Purchaser or other Program
Support Provider shall be entitled to the benefits of ARTICLE VII. Only
assignments to Persons other than a Program Support Provider shall be subject to
SECTION 11.11.

          SECTION 11.11 SECURITIES LAWS; ASSIGNMENTS. (a) The Committed
Purchaser represents and warrants to the Company that it is a "qualified
institutional buyer" within the meaning of Rule 144A promulgated under the
Securities Act and agrees that its that its VFC Certificate will be acquired
for investment only and not with a view to any public distribution thereof,
and that the Committed Purchaser will not offer to sell or otherwise dispose
of its VFC

                                       48
<Page>

Certificate (or any interest therein) in violation of any of the registration
requirements of the Securities Act or any applicable state or other
securities laws. The Committed Purchaser acknowledges that it has no right to
require the Company to register its VFC Certificate under the Securities Act
or any other securities law. The Committed Purchaser hereby confirms and
agrees that in connection with any transfer by it of an interest in the VFC
Certificate, the Committed Purchaser has not engaged and will not engage in a
general solicitation or general advertising including advertisements,
articles, notices or other communications published in any newspaper,
magazine or similar media or broadcast over radio or television, or any
seminar or meeting whose attendees have been invited by any general
solicitation or general advertising.

          (b) Any sale subject to the terms of this Section 11.11(a) shall be
made only upon the satisfaction of all applicable requirements under Section 5.3
of the Agreement, in the ordinary course of its business and in accordance with
applicable law, in each case pursuant to a commitment transfer supplement,
substantially in the form of Exhibit E (the "COMMITMENT TRANSFER SUPPLEMENT"),
executed by such purchaser, the Committed Purchaser and delivered to the
Administrator for its acceptance and recording in the Register. Notwithstanding
the foregoing, the Committed Purchaser shall not so sell its rights hereunder,
(x) if such sale would result in there being more than 20 beneficial owners of
the VFC Certificates for the purposes of the 1940 Act or is not otherwise
permitted under subsection 5.3(e) of the Agreement, (y) unless the Committed
Purchaser reasonably believes that such purchaser is a "qualified institutional
buyer" within the meaning of Rule 144A promulgated under the Securities Act and
(z) unless, prior to such sale, the purchaser of such rights shall have executed
and delivered to the Administrator and the Transfer Agent and Registrar an
Assignment/Participation Certification. Upon such execution, delivery,
acceptance and recording, (A) the Company shall sign, on behalf of the Trust,
and shall direct the Trustee in writing to duly authenticate, and the Trustee,
upon receiving such direction, shall so authenticate, a new VFC Certificate in
the name and the denomination determined pursuant to the related Commitment
Transfer Supplement and set forth in such written direction and shall deliver
such VFC Certificate to such purchaser (or its designated agent or nominee) in
accordance with such written direction, and (B) from and after the Transfer
Issuance Date determined pursuant to such Commitment Transfer Supplement, (1)
the purchaser thereunder shall be a party hereto and, to the extent provided in
such Commitment Transfer Supplement, have the rights and obligations of the
Committed Purchaser hereunder with a "Commitment" as set forth therein and (2)
the Committed Purchaser shall, to the extent provided in such Commitment
Transfer Supplement, be released from its obligations under this Supplement.

          (c) The Administrator shall maintain at its address referred to in
Section 11.9 a copy of each Commitment Transfer Supplement delivered to it.

          (d) Upon its receipt of an executed Commitment Transfer Supplement,
the Administrator shall (i) promptly accept such Commitment Transfer Supplement
and (ii) on the Transfer Issuance Date determined pursuant thereto record the
information contained therein in the Register and give notice of such acceptance
and recordation to the Servicer and the Company.

                                       49
<Page>

          SECTION 11.12 [Reserved]

          SECTION 11.13 COUNTERPARTS. This Supplement may be executed in any
number of counterparts and by the different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original,
and all of which taken together shall constitute one and the same agreement.

          SECTION 11.14 NO BANKRUPTCY PETITION. (a) The Administrator and the
Committed Purchaser hereby covenants and agrees that, prior to the date which is
one year and one day after the later of (i) the last day of the Series 2004-1
Amortization Period and (ii) the last day of the amortization period of any
other Outstanding Series, it will not institute against, or join any other
Person in instituting against, the Company any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other similar proceedings
under any federal or state bankruptcy or similar law.

          (b) The Company, the Servicer, the Trustee, the Administrator and each
Alternate Investor hereby covenants and agrees that, prior to the date which is
one year and one day after the payment in full of all outstanding Commercial
Paper, it will not institute against, or join any other Person in instituting
against, the Committed Purchaser any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings, or other similar proceedings under any
federal or state bankruptcy or similar law.

          SECTION 11.15 COMMITTED PURCHASER'S LIABILITIES. Notwithstanding
anything to the contrary contained in this Supplement, the obligations of the
Committed Purchaser under this Supplement and all other Transaction Documents
are solely the corporate obligations of the Committed Purchaser. No recourse
shall be had against any stockholder, employee, officer, director or
incorporator of the Committed Purchaser; PROVIDED, that this Section 11.15 shall
not relieve any such Person of any liability it might otherwise have for its own
gross negligence or willful misconduct.

          SECTION 11.16 RECOURSE TO THE COMPANY. Notwithstanding any limitation
on recourse contained in this Supplement, the Company shall immediately pay to
the Administrator when due, for the account of the Committed Purchaser on a full
recourse basis, (i) such fees as set forth in the Fee Letter, (ii) all amounts
payable as Series 2004-1 Monthly Interest, (iii) all amounts payable as Dilution
Adjustments, Transfer Deposit Amounts, or payable pursuant to Section 2.6 of the
Agreement (which shall be immediately due and payable by the Company and applied
to reduce outstanding Series 2004-1 Invested Amount), (iv) all amounts payable
pursuant to Article VII and Section 2.10, if any, (v) all Program Costs, (vi)
all Servicer costs and expenses, including the Servicing Fee, in connection with
servicing, administering and collecting the Receivables, and (vii) all Default
Fees (collectively, the "RECOURSE OBLIGATIONS"). If any Person fails to pay any
of the Recourse Obligations when due, such Person agrees to pay, on demand, the
Default Fee in respect thereof until paid.

                                       50
<Page>

          SECTION 11.17 RATING AGENCY CONDITION. Unless and until the VFC
Certificates shall be rated by an applicable rating agency, no action permitted
to be taken hereunder by any party shall be subject to satisfaction of the
Rating Agency Condition.

          SECTION 11.18 WAIVER OF NOTICE AND OPINIONS. The Trustee hereby waives
the following requirements of Section 5.10 of the Agreement: (i) that the
Trustee receive at least 30 days prior written notice from the Company of the
issuance of this Supplement and the VFC Certificate, (ii) that the Company
deliver to the Trustee a Tax Opinion (as defined in the Agreement) addressed to
the Trustee and the Trust and (iii) that the Company deliver to the Trustee a
General Opinion (as defined in the Agreement) addressed to the Trustee and the
Trust.

                                       51
<Page>

          IN WITNESS WHEREOF, the Company, the Servicer, the Trustee, the
Administrator, and the Committed Purchaser have caused this Series 2004-1
Supplement to be duly executed by their respective officers as of the day and
year first above written.

                                        USS RECEIVABLES COMPANY, LTD.

                                        By: /s/  Brian S. Cooper
                                           -------------------------------------
                                        Name:  BRIAN S. COOPER
                                        Title: TREASURER

                                        UNITED STATIONERS FINANCIAL SERVICES
                                        LLC, as Servicer,

                                        By: /s/  Brian S. Cooper
                                           -------------------------------------
                                        Name:  BRIAN S. COOPER
                                        Title: TREASURER

                                        JPMORGAN CHASE BANK,
                                        not in its individual capacity but
                                        solely as Trustee,

                                        By: /s/ Mark J. Frye
                                           -------------------------------------
                                        Name:  Mark J. Frye
                                        Title: Attorney-In-Fact

                                        FIFTH THIRD BANK,
                                        as Committed Purchaser and as
                                        Administrator,

                                        By: /s/ Robert O. Finley
                                           -------------------------------------
                                        Name:  Robert O. Finley
                                        Title: Vice President

                                       S-1

<Page>

                                                                       EXHIBIT A
                                                                TO SERIES 2004-1
                                                                      SUPPLEMENT

                   UNITED STATIONERS RECEIVABLES MASTER TRUST

                         VFC CERTIFICATE, SERIES 2004-1

REGISTERED
NO. VFC- 1

          THIS VFC CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"). NEITHER THIS VFC
CERTIFICATE NOR ANY PORTION HEREOF MAY BE OFFERED OR SOLD EXCEPT IN COMPLIANCE
WITH THE REGISTRATION PROVISIONS OF THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM SUCH REGISTRATION PROVISIONS.

          THIS VFC CERTIFICATE IS NOT PERMITTED TO BE TRANSFERRED, ASSIGNED,
EXCHANGED OR OTHERWISE PLEDGED OR CONVEYED EXCEPT IN COMPLIANCE WITH THE TERMS
OF THE POOLING AGREEMENT, REFERRED TO HEREIN.

          This VFC Certificate evidences a fractional undivided interest in the
assets of the

                   UNITED STATIONERS RECEIVABLES MASTER TRUST

the corpus of which consists of receivables representing amounts payable for
merchandise or services, which receivables have been purchased by USS
Receivables Company, Ltd., a Cayman Islands limited liability company, which in
turn transferred and assigned such receivables to the United Stationers
Receivables Master Trust.

                                                                 Exhibits Page 1
<Page>

     This certifies that

                                FIFTH THIRD BANK

(the "VFC CERTIFICATEHOLDER") is the registered owner of a fractional undivided
interest in the assets of the United Stationers Receivables Master Trust (the
"TRUST"), created pursuant to the Second Amended and Restated Pooling Agreement
dated as of March 28, 2003 (as may from time to time be amended, restated,
supplemented or otherwise modified, the "POOLING AGREEMENT"), by and among USS
Receivables Company, Ltd., a Cayman Islands limited liability company (the
"COMPANY"), United Stationers Financial Services LLC, an Illinois limited
liability company ("USFS"), as servicer, and JP Morgan Trust Company (as
successor in interest to Bank One, NA (Main Office Chicago), not in its
individual capacity but solely as trustee (in such capacity, the "TRUSTEE") for
the Trust, as supplemented by the Series 2004-1 Supplement, dated as of March
25, 2004 (as amended, supplemented or otherwise modified from time to time, the
"SUPPLEMENT", collectively, with the Pooling Agreement, the "AGREEMENT"), by and
among the Company, USFS, as servicer (except where otherwise noted therein),
Fifth Third Bank (Chicago), National Association, a national banking
association, as administrator for the Fifth Third Conduit Program and as
committed purchaser, and the Trustee. The corpus of the Trust consists of
receivables (the "RECEIVABLES") representing amounts payable for merchandise or
services and all other Trust Assets referred to in the Agreement. Although a
summary of certain provisions of the Agreement is set forth below, this VFC
Certificate does not purport to summarize the Agreement, is qualified in its
entirety by the terms and provisions of the Agreement and reference is made to
the Agreement for information with respect to the interests, rights, benefits,
obligations, proceeds and duties evidenced hereby and the rights, duties and
obligations of the Trustee. A copy of the Agreement may be requested by a holder
hereof by writing to the Trustee at JP Morgan Trust Company, 227 W. Monroe, 26th
Floor, Chicago, Illinois 60606, Attention: Global Corporate Trust Services. To
the extent not defined herein, the capitalized terms used herein have the
meanings ascribed to them in the Agreement.

          This VFC Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the VFC
Certificateholder, by virtue of the acceptance hereof, assents and is bound.

          USFS, the Company, each VFC Certificateholder and the Trustee intend,
for federal, state and local income and franchise tax purposes only, the VFC
Certificates to be evidence of indebtedness of the Company secured by the
Receivables. The VFC Certificateholder, by virtue of the acceptance hereof,
assents and is bound by such intent.

          This VFC Certificate is one in a Series of Investor Certificates
entitled "United Stationers Receivables Master Trust, VFC Certificates, Series
2004-1" (the "VFC CERTIFICATES") representing a fractional undivided interest in
the Trust including the right to receive (i) the Invested Percentage (expressed
as a decimal) of Collections received with respect to the Receivables and all
other funds on deposit in the Collection Account and (ii) all other funds on
deposit in the Series

                                                                 Exhibits Page 2
<Page>

Collection Subaccounts and any subaccounts thereof (collectively, the "VFC
CERTIFICATEHOLDERS' INTEREST"). The Trust's assets are allocated in part to the
VFC Certificateholders and to the Company as owner of the right to receive
Collections allocated to the VFC Certificateholders' Interest and not required
to be distributed to or for the benefit of the Purchasers (the "SERIES 2004-1
SUBORDINATED INTEREST") with the remainder allocated to the Certificateholders
of other Series of Investor Certificates and to the Company (the "EXCHANGEABLE
COMPANY INTEREST"). The Company may, in accordance with the procedures set forth
in the Agreement, request an adjustment of the Exchangeable Company Interest in
exchange for an increase in the Invested Amount of a Class of Investor
Certificates of an Outstanding Series and an increase in the related Series
2004-1 Subordinated Interest or one or more newly issued Series of Investor
Certificates and the related newly created Series 2004-1 Subordinated Interest,
if any.

          Interest on and principal of the Purchaser Invested Amount shall be
distributed to the VFC Certificateholder at the times, and in the amounts set
forth in the Agreement. Distributions with respect to this VFC Certificate shall
be paid by the Trustee in immediately available funds to the VFC
Certificateholder at the office of the Administrator by wire transfer provided
by the Trustee. Final payment of this VFC Certificate shall be made only upon
presentation and surrender of this VFC Certificate at the office or agency
specified in the notice of final distribution delivered by the Trustee to the
VFC Certificateholders in accordance with the Agreement.

          This VFC Certificate does not represent an obligation of, or an
interest in, the Company, USFS or any Affiliate of either of them.

          The transfer of this VFC Certificate shall be registered in the
Certificate Register upon surrender of this VFC Certificate for registration of
transfer at any office or agency maintained by the Transfer Agent and Registrar
accompanied by a written instrument of transfer, in a form satisfactory to the
Trustee and the Transfer Agent and Registrar, duly executed by the VFC
Certificateholder or the VFC Certificateholder's attorney, and duly authorized
in writing with such signature guaranteed, and thereupon one or more new VFC
Certificates of authorized denominations and of like aggregate Fractional
Undivided Interests will be issued to the designated transferee or transferees.

          The Company, the Trustee, the Paying Agent, the Transfer Agent and
Registrar and any agent of any of them, may treat the person in whose name this
VFC Certificate is registered as the owner hereof for all purposes.

          It is expressly understood and agreed by the Company and the VFC
Certificateholder that (a) the Agreement is executed and delivered by the
Trustee, not individually or personally but solely as Trustee of the Trust, in
the exercise of the powers and authority conferred and vested in it, (b) the
representations, undertakings and agreements made on the part of the Trustee in
the Agreement are made and intended not as personal representations,
undertakings and agreements by the Trustee, but are made and intended for the
purpose of binding only the Trust, (c) nothing herein contained shall be
construed as creating any liability of the Trustee, individually or personally,
to

                                                                 Exhibits Page 3
<Page>

perform any covenant either expressed or implied made on the part of the Trust
in the Agreement all such liability, if any, being expressly waived by the
parties who are signatories to the Agreement and by any Person claiming by,
through or under such parties; PROVIDED, HOWEVER, the Trustee shall be liable in
its individual capacity for its own willful misconduct or negligence and for any
tax assessed against the Trustee based on or measured by any fees, commission or
compensation received by it for acting as Trustee and (d) under no circumstances
shall the Trustee be personally liable for the payment of any indebtedness or
expenses of the Trust or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Trust under the
Agreement.

          The holder of this VFC Certificate is authorized to record the date
and amount of each increase and decrease in the Series 2004-1 Invested Amount
with respect to such holder on the schedules annexed hereto and made a part
hereof and any such recordation shall constitute PRIMA FACIE evidence of the
accuracy of the information so recorded, absent manifest error, PROVIDED that
the failure of the holder of this VFC Certificate to make such recordation (or
any error in such recordation) shall not affect the rights of the holder of this
VFC Certificate or the obligations of the Company, USFS or the Trustee under the
Agreement.

          THIS VFC CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

          Unless the certificate of authentication hereon has been executed by
or on behalf of the Trustee, by manual signature, this VFC Certificate shall not
be entitled to any benefit under the Agreement, or be valid for any purpose.

                                                                 Exhibits Page 4
<Page>

          IN WITNESS WHEREOF, the Company has caused this VFC Certificate to be
duly executed and delivered.

Dated: March 25, 2004

                                        USS  RECEIVABLES  COMPANY,  LTD., as
                                        authorized  pursuant to  Section 5.1 of
                                        the Agreement

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

                                                                 Exhibits Page 5
<Page>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

          This is one of the VFC Certificates described in the within-mentioned
Agreement.

JP MORGAN TRUST COMPANY,
not in its individual capacity
but solely as Trustee

By:                                     OR   By:
   -------------------------------------        --------------------------
         Authorized Signatory                Authenticating Agent

                                                    By:
                                                       -------------------------
                                                           Authorized Signatory

                                                                 Exhibits Page 6
<Page>

                                                                      Schedule I
                                                                          to VFC
                                                                     Certificate

<Table>
<Caption>
                INCREASE IN      DECREASE IN
                SERIES 2004-1    SERIES 2004-1     SERIES 2004-1
                INVESTED         INVESTED          INVESTED         NOTATION
DATE            AMOUNT           AMOUNT            AMOUNT           MADE BY
<S>             <C>              <C>               <C>              <C>

</Table>

                                                                 Exhibits Page 7
<Page>

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
                                                           IDENTIFYING NUMBER OF
-------------------------------------------------          ASSIGNEE(S):
-------------------------------------------------

(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE)

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

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

the within certificate and all rights thereunder,
and hereby irrevocably constitutes and appoints

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

attorney, with full power of substitution in the premises, to transfer said
certificate on the books kept for registration thereof.

Dated: _______________________________

                                        Note: The signature(s) to this
                                        Assignment must correspond with the
                                        name(s) as written on the face of the
                                        within certificate in every particular,
                                        without alteration or enlargement or any
                                        change whatever.

     (1)  A Non-U.S. Person as defined in the Internal Revenue Code of 1986, as
          amended the "CODE") must certify to the Trustee in writing as to its
          Non-U.S. Person status and such further information as may be required
          under the Code or reasonably requested by the Trustee.

                                                                 Exhibits Page 8
<Page>

                                                                       EXHIBIT B
                                                                TO SERIES 2004-1
                                                                      SUPPLEMENT

               FORM OF [ASSIGNMENT] [PARTICIPATION] CERTIFICATION

JP Morgan Trust Company
227 W. Monroe, 26th Floor
Chicago, Illinois  60606
ATTENTION: ASSET BACKED FINANCE

Ladies and Gentlemen:

          In connection with our proposed entrance into a[n] [assignment]
[participation] (the "Participation") in respect of the VFC Certificate held by
[Name of Purchaser] (the ["Participation"] ["Assignment"]), and pursuant to the
provisions of the Second Amended and Restated Pooling Agreement, dated as of
March 28, 2003, by and among JP Morgan Trust Company (as successor in interest
to Bank One, NA (Main Office Chicago)), as Trustee (in such capacity, the
"Trustee"), and USS Receivables Company, Ltd. (the "Company") and United
Stationers Financial Services LLC ("USFS"), as servicer, and the
Certificateholders thereto (the "Pooling Agreement"; capitalized terms used
herein and not otherwise defined are used as defined in the Pooling Agreement),
and the Series 2004-1 Supplement, dated as of March 25, 2004 among the Company,
USFS, as servicer (except where otherwise noted therein), the Trustee and the
Committed Purchasers from time to time parties thereto (the "Supplement"), we
confirm that:

          1.   Certain terms of the [Assignment] [Participation] are as follows:

               (1) The effective date of the [Assignment] [Participation] is
          ___________, _______.

               (2) The expected maturity date of the [Assignment]
          [Participation] is _____________.

               (3) The portion of the VFC Certificate and commitment under the
          Supplement being [assigned] [participated] is _____%.

          2.   We have acquired the [Assignment] [Participation] described
herein for our own account and we are and will remain the sole beneficial owner
of such [Assignment] [Participation], and any interest therein, at all times.

          3.   We understand that we may not at any time grant any assignment]

                                                                 Exhibits Page 9
<Page>

[participation] or other interest in the [Assignment] [Participation] or
otherwise subdivide our interest therein, and we further understand that we
may not sell, assign, trade, pledge or otherwise transfer the [Assignment]
[Participation] except in accordance with and to the extent permitted under
Section 11.10 or 11.11 of the Supplement or 2.6 of the Pooling Agreement.

          4.   We have such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of our investment in
the VFC Certificate and are able to bear the economic risk of such investment.
We have, independently and without reliance upon the Administrator or any other
Committed Purchaser, and based on such documents and information as we have
deemed appropriate, made our own appraisal of and investigation into the
business, operations, property, financial and other condition and
creditworthiness of the Trust, the Company and USFS and made our own decision to
purchase our interest in the VFC Certificate, and will, independently and
without reliance upon the Administrator or any other Committed Purchaser, and
based on such documents and information as we shall deem appropriate at the
time, continue to make our own analysis, appraisals and decisions in taking or
not taking action under the Supplement and the Pooling Agreement, and to make
such investigation as we deem necessary to inform our self as to the business,
operations, property, financial and other condition and creditworthiness of the
Trust, the Company and USFS. We are an "accredited investor", as defined in Rule
501, promulgated by the SEC under the Securities Act and a "qualified
institutional investor," as defined in Rule 144A, promulgated by the SEC under
the Securities Act. We understand that the offering and sale of the VFC
Certificate has not been and will not be registered under the Securities Act and
has not and will not be registered or qualified under any applicable "blue sky"
law, and that the offering and sale of the VFC Certificate has not been reviewed
by, passed on or submitted to any federal or state agency or commission,
securities exchange or other regulatory body. We are acquiring an interest in
the VFC Certificate without a view to any distribution, resale or other transfer
thereof except as contemplated in the following sentence. In addition to the
foregoing, we will not resell or otherwise transfer any interest or
participation in the VFC Certificate, except in accordance with Section 11.11 of
the Supplement. In connection therewith, we hereby agree that we will not resell
or otherwise transfer the VFC Certificate or any interest therein unless the
purchaser thereof provides to the addressee hereof a letter substantially in the
form hereof.

          [7.  [The VFC Certificate to be held by us will be deemed to be held
beneficially by a single person for purposes of the 1940 Act.] [The VFC
Certificate to be held by us will be deemed to be held beneficially by a total
of ____________ persons for purposes of the 1940 Act.]](1)

----------
(1) To be included in assignments only.

                                                                Exhibits Page 10
<Page>

          You are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceeding or official inquiry with respect to the
matters covered hereby.

                                        Very truly yours,
                                        [ASSIGNEE] [PARTICIPANT]

                                        By:
                                           -------------------------------------
                                               Name:
                                               Title:

                                                                Exhibits Page 11
<Page>

                                                                       EXHIBIT C
                                                                TO SERIES 2004-1
                                                                      SUPPLEMENT

                           FORM OF NOTICE OF INCREASE

------------, -----------

[Name and Address of
the Administrator]

Telecopier:
Attention:

Ladies and Gentlemen:

          Reference is hereby made to the Series 2004-1 Supplement, dated as of
March 25, 2004, (as may from time to time be amended, modified or supplemented,
the "SUPPLEMENT"), among USS Receivables Company, Ltd. (the "COMPANY"), United
Stationers Financial Services, LLC ("USFS"), as servicer (except where otherwise
noted therein), Fifth Third Bank, as committed purchaser ("COMMITTED
PURCHASER"), and JP Morgan Trust Company, as Trustee (in such capacity, the
"TRUSTEE"), and to the Second Amended and Restated Pooling Agreement, dated as
of March 28, 2003 (as may from time to time be amended, modified or
supplemented, the "POOLING AGREEMENT") among the Company, USFS, and the Trustee.
Capitalized terms used in this Notice of Increase and not otherwise defined
herein shall have the meanings assigned thereto in the Supplement.

          This letter constitutes the notice required in connection with any
Increase pursuant to subsection 2.5(a) of the Supplement.

          USFS, on behalf of the Company, and the Company hereby request that an
Increase be made by the Committed Purchaser on _____________, _____ in the
aggregate amount of $_____________.

          The Servicer hereby represents and warrants as of the date of such
Increase after giving effect thereto, the conditions set forth in subsections
2.5(a) and (c) of the Supplement with respect to such Increase have been
satisfied.

                                                                Exhibits Page 12
<Page>

          IN WITNESS WHEREOF, the undersigned has caused this notice to be
executed by its duly authorized officers as of the date first above written on
behalf of the Company or USFS, as applicable, and not individually.

                                        UNITED STATIONERS FINANCIAL SERVICES,
                                        LLC, as Servicer

                                        By:
                                           -------------------------------------
                                              Name:
                                              Title:

                                        USS RECEIVABLES COMPANY, LTD.

                                        By:
                                           -------------------------------------
                                              Name:
                                              Title:

                                                                Exhibits Page 13
<Page>

                                                                     EXHIBIT C-1
                                                                TO SERIES 2004-1
                                                                      SUPPLEMENT

                           FORM OF NOTICE OF DECREASE

------------, -----------

[Name and Address of
the Administrator]

Telecopier:
Attention:

Ladies and Gentlemen:

          Reference is hereby made to the Series 2004-1 Supplement, dated as of
March 25, 2004, (as may from time to time be amended, modified or supplemented,
the "SUPPLEMENT"), among USS Receivables Company, Ltd. (the "COMPANY"), United
Stationers Financial Services, LLC ("USFS"), as servicer (except where otherwise
noted therein), Fifth Third Bank, as committed purchaser ("COMMITTED
PURCHASER"), and JP Morgan Trust Company, as Trustee (in such capacity, the
"TRUSTEE"), and to the Second Amended and Restated Pooling Agreement, dated as
of March 28, 2003 (as may from time to time be amended, modified or
supplemented, the "POOLING AGREEMENT") among the Company, USFS, and the Trustee.
Capitalized terms used in this Notice of Decrease and not otherwise defined
herein shall have the meanings assigned thereto in the Supplement.

          This letter constitutes the notice required in connection with any
Decrease pursuant to subsection 2.7(a) of the Supplement.

          USFS, on behalf of the Company, and the Company hereby request that a
Decrease in the Series 2004-1 Invested Amount be made on ____________, ______ in
the aggregate amount of $_____________ by the distribution of such amount by the
Servicer to the Committed Purchaser, in accordance with its Series 2004-1
Purchaser Invested Amount from funds on deposit in the Series 2004-1 Collection
Subaccount. The Decrease will be made in available funds (by 12:00 noon Chicago
time) to [specify account number]. After giving effect to the Decrease requested
hereby, the aggregate Series 2004-1 Invested Amount is $_______________.

                                                                Exhibits Page 14
<Page>

          IN WITNESS WHEREOF, the undersigned has caused this notice to be
executed by its duly authorized officers as of the date first above written on
behalf of the Company or USFS, as applicable, and not individually.

                                        UNITED STATIONERS FINANCIAL SERVICES,
                                        LLC, as Servicer

                                        By:
                                           -------------------------------------
                                              Name:
                                              Title:

                                        USS RECEIVABLES COMPANY, LTD.

                                        By:
                                           -------------------------------------
                                              Name:
                                              Title:

                                                                Exhibits Page 15
<Page>

                                                                       EXHIBIT D
                                                                TO SERIES 2004-1
                                                                      SUPPLEMENT

                        FORM OF MONTHLY SETTLEMENT REPORT

                [As agreed between Fifth Third and the Servicer]

                                                                Exhibits Page 16
<Page>

                                                                       EXHIBIT E
                                                                TO SERIES 2004-1
                                                                      SUPPLEMENT

                     FORM OF COMMITMENT TRANSFER SUPPLEMENT

          COMMITMENT TRANSFER SUPPLEMENT, dated as of ________ ___, 200_ among
[COMMITTED PURCHASER] (the "TRANSFEROR"), each purchaser listed as an Acquiring
Purchaser on the signature pages hereof (each, an "ACQUIRING PURCHASER"), [IF
ANY ACQUIRING PURCHASER IS NOT AN EXISTING PURCHASER OR AN AFFILIATE: USS
RECEIVABLES COMPANY, LTD., a Cayman Islands limited liability company (the
"COMPANY"), UNITED STATIONERS FINANCIAL SERVICES, LLC, an Illinois limited
liability company on ("USFS")] and FIFTH THIRD BANK, as Administrator (in such
capacity, the "ADMINISTRATOR"), for the Committed Purchasers under the
Supplement described below.

                              W I T N E S S E T H:
                               - - - - - - - - - -

          WHEREAS, this Commitment Transfer Supplement is being executed and
delivered in accordance with subsection 11.11(b) of the Series 2004-1
Supplement, dated as of March 25, 2004 (as may from time to time be amended,
supplemented or otherwise modified in accordance with the terms thereof, the
"SUPPLEMENT"; terms defined therein being used herein as therein defined), among
the Company, USFS, Fifth Third Bank, as the Initial Purchaser, the Transferor,
the other Committed Purchasers from time to time parties thereto, and JP Morgan
Trust Company, as the Trustee (in such capacity, the "TRUSTEE"), and the Second
Amended and Restated Pooling Agreement, dated as of March 28, 2003 (as may from
time to time be amended, supplemented or otherwise modified, the "POOLING
AGREEMENT"), among the Company, USFS and the Trustee;

          WHEREAS, each Acquiring Purchaser (if it is not already an existing
Committed Purchaser) wishes to become Committed Purchaser party to the
Supplement; and

          WHEREAS, the Transferor is selling and assigning to each Acquiring
Purchaser, rights, obligations and commitments under the Supplement;

          NOW, THEREFORE, the parties hereto hereby agree as follows:

          5.   Upon the execution and delivery of this Commitment Transfer
Supplement by each Acquiring Purchaser, [IF ANY ACQUIRING PURCHASER IS NOT THEN
AN EXISTING PURCHASER OR AN AFFILIATE: the Company, USFS,] and the Transferor
(the date of such execution and delivery, the "TRANSFER ISSUANCE DATE"), each
Acquiring Purchaser

                                                                Exhibits Page 17
<Page>

shall be an Committed Purchaser party to the Supplement for all purposes
thereof.

          6.   The Transferor acknowledges receipt from each Acquiring Purchaser
of an amount equal to the purchase price, as agreed between the Transferor and
such Acquiring Purchaser (the "PURCHASE PRICE"), of the portion being purchased
by such Acquiring Purchaser (such Acquiring Purchaser's "PRO RATA SHARE") of the
Transferor's Series 2004-1 Purchaser Invested Amount. The Transferor hereby
irrevocably sells, assigns and transfers to each Acquiring Purchaser, without
recourse, representation or warranty, and each Acquiring Purchaser hereby
irrevocably purchases, takes and assumes from the Transferor, such Acquiring
Purchaser's Pro Rata Share of the Transferor's Series 2004-1 Purchaser Invested
Amount.

          7.   The Transferor has made arrangements with each Acquiring
Purchaser with respect to (i) the portion, if any, to be paid, and the date or
dates for payment, by the Transferor to such Acquiring Purchaser of any
Commitment Fees heretofore received by the Transferor pursuant to the Supplement
prior to the Transfer Issuance Date and (ii) the portion, if any, to be paid,
and the date or dates for payment, by such Acquiring Purchaser to the Transferor
of Commitment Fees or Series 2004-1 Monthly Interest received by such Acquiring
Purchaser pursuant to the Supplement from and after the Transfer Issuance Date.

          8.   From and after the Transfer Issuance Date, amounts that would
otherwise be payable to or for the account of the Transferor pursuant to the
Supplement shall, instead, be payable to or for the account of the Transferor
and the Acquiring Purchasers, as the case may be, in accordance with their
respective interests as reflected in this Commitment Transfer Supplement,
whether such amounts have accrued prior to the Transfer Issuance Date or accrue
subsequent to the Transfer Issuance Date.

          9.   Prior to or concurrently with the execution and delivery hereof,
the Administrator will, at the expense of the Transferor, provide to each
Acquiring Purchaser (if it is not already an existing Committed Purchaser party
to the Supplement) photocopies of all documents delivered to the Administrator
on the Issuance Date in satisfaction of the conditions precedent set forth in
the Supplement.

          10.  Each of the parties to this Commitment Transfer Supplement agrees
that at any time and from time to time upon the written request of any other
party, it will execute and deliver such further documents and do such further
acts and things as such other party may reasonably request in order to effect
the purposes of this Commitment Transfer Supplement.

          11.  By executing and delivering this Commitment Transfer Supplement,
the Transferor and each Acquiring Purchaser confirm to and agree with each other
as follows: (i) other than the representation and warranty that it is the legal
and beneficial owner of the interest being assigned hereby free and clear of any
adverse claim, the Transferor makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with the Supplement or the execution,

                                                                Exhibits Page 18
<Page>

legality, validity, enforceability, genuineness, sufficiency or value of the
Supplement, the Pooling Agreement, the VFC Certificate, Series 2004-1 or any
instrument or document furnished pursuant thereto; (ii) the Transferor makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of the Trust, the Company or USFS or the performance or
observance by the Trust, the Company or USFS of any of their obligations under
the Supplement, the Pooling Agreement or any other instrument or document
furnished pursuant hereto; (iii) each Acquiring Purchaser confirms that it has
received a copy of the Supplement, the Pooling Agreement and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Commitment Transfer Supplement; (iv)
each Acquiring Purchaser will, independently and without reliance upon the
Administrator, the Transferor or any other Committed Purchaser and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the
Supplement and the Pooling Agreement; and (v) each Acquiring Purchaser agrees
that it will perform in accordance with their terms all of the obligations which
by the terms of the Supplement are required to be performed by it as an
Committed Purchaser. Schedule I hereto sets forth the revised Pro Rata Shares of
the Transferor and each Acquiring Purchaser as well as administrative
information with respect to each Acquiring Purchaser.

          12.  This Commitment Transfer Supplement shall be governed by, and
construed in accordance with, the laws of the State of New York.

                                                                Exhibits Page 19
<Page>

          IN WITNESS WHEREOF, the parties hereto have caused this Commitment
Transfer Supplement to be executed by their respective duly authorized officers
as of the date first set forth above.

                                        [NAME OF SELLING COMMITTED
                                        PURCHASER], as
                                          Transferor

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

                                        [NAME OF ACQUIRING PURCHASER], as
                                          Acquiring Purchaser

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

                                        FIFTH THIRD BANK, as
                                          Administrator

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

[IF NECESSARY:

CONSENTED AND ACKNOWLEDGED:

USS RECEIVABLES COMPANY, LTD.

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

                                                                Exhibits Page 20
<Page>

                                   SCHEDULE I

LIST OF ADDRESSES FOR NOTICES
AND OF COMMITMENT PERCENTAGES

FIFTH THIRD BANK, as
  Administrator

Fifth Third Bank
38 Fountain Square Plaza
M.D. 109047
Cincinnati, Ohio 45263

                     Attention:  Judy Huls
                     Telecopier: 513-534-0875

[TRANSFEROR]

     Address:

           Prior Pro Rata Share:

           Revised Pro Rata Share:

[ACQUIRING PURCHASER]

     Address:

           [Prior] Pro Rata Share:

           [Revised Pro Rata Share:]

                                                                Exhibits Page 21
<Page>

                                   Schedule 1
                               LIST OF COMMITMENTS

<Table>
<Caption>
Name of Committer Purchaser              Commitment
---------------------------              ----------
<S>                                     <C>
Fifth Third Bank                        $ 25,000,000
</Table>

                                    Sch. 1-1
<Page>

                                   Schedule 2

                               Lockbox Agreements

                                    PNC Bank
                                    --------

Lockbox Number 821724               Philadelphia, Pennsylvania

Lockbox Number 910284               Pasadena, California

Lockbox Number 771708               Chicago, Illinois

Lockbox Number 676502               Dallas, Texas

Lockbox Account Number 2149466

                                    US Bank
                                    -------

Lockbox Number 952418               St. Louis, Missouri

Lockbox Account Number              152302004717

                                    Sch. 2-1

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