Document:

Retirement Replacement Plan

    Buckeye
      Technologies Inc.

    

    Retirement
      Replacement Plan

    

    Buckeye
      Technologies Inc., a Delaware corporation (the “Company”), hereby adopts the
      Buckeye Technologies Inc. Retirement Replacement Plan (the “Plan”). The purposes
      of this Plan are to further the growth, development and financial success of
      the
      Company by providing additional incentives for the purpose of hiring and/or
      retaining key employees of the Company. 

    

    Background

    

    
      	
              1.

            	
              Previously
                the Company maintained a Supplemental Retirement Plan pursuant to
                which
                contributions were made to a rabbi trust for the benefit of certain
                key
                employees.

            

    

    

    
      	
              2.
                

            	
              The
                purpose of the Supplemental Retirement Plan was to recognize that
                because
                of the years of professional expertise or employment experience that
                they
                had gained prior to joining the Company, certain officers and certain
                key
                employees should receive retirement benefits in addition to the benefits
                they were entitled to receive under the Buckeye Retirement
                Plan.

            

    

    

    
      	
              3.

            	
              Because
                of restraints on the investment of assets intended to fund the
                Supplemental Retirement Plan, the Board of Directors of the Company
                (the
                “Board”) terminated the Supplemental Retirement Plan effective December
                21, 2004.

            

    

    

    
      	
              4.

            	
              The
                Company still wishes to recognize that because of the years of
                professional expertise or employment experience that they gained
                prior to
                joining the Company, certain officers and certain key employees should
                receive a benefit in addition to the benefits they are entitled to
                receive
                under the Buckeye Retirement Plan.

            

    

    

    
      	
              5.

            	
              By
                adopting the Plan, the Company intends to provide cash payments to
                certain
                officers and certain key employees that will partially replace the
                benefits that such officers and employees would have been entitled
                to
                under the Supplemental Retirement Plan had it been continued and
                they had
                participated therein.

            

    

    

    

    ARTICLE
      1. DEFINITIONS

    

    Section
      1.1. “Chief
      Executive Officer” means the chief executive officer of the
      Company.

    

    Section
      1.2. “Employee” means
      the
      Chief Executive Officer, the President and any other person who is employed
      by
      the Company (or by subsidiary or affiliate of the Company that has adopted
      the
      Plan) and who has been determined in writing by the Chief Executive Officer
      to
      be a member of a select group of key management employees.

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    Section
      1.3. “Participant”
      means an Employee who participates in the Plan pursuant to Article 2
      hereof.

    

    Section
      1.4. “Plan”
      means this Buckeye Technologies Inc. Retirement Replacement Plan.

    

    Section
      1.5. “Plan
      Year”
      means
      the twelve (12) month period beginning July 1 and ending on June 30 of the
      following calendar year; the initial Plan Year hereunder shall begin July 1,
      2005. 

    

    Section
      1.6. “President”
      means the president of the Company.

    

    

    ARTICLE
      2. PARTICIPATION

    

    Section
      2.1. Eligibility
      Requirements.
      An
      Employee other than the Chief Executive Officer or the President shall be
      eligible to participate in this Plan upon written designation to that effect
      by
      the Chief Executive Officer. The names of the Employees designated by the Chief
      Executive Officer as eligible to participate in this Plan and the terms of
      their
      participation shall be set forth in a written “Participant List” signed by the
      Chief Executive Officer and filed with the Company’s Secretary. Subject to
      Section 2.2 hereof, the Participant List may be amended from time to time and
      such amendment shall not require formal amendment of the Plan but shall require
      the prior written approval of the Chief Executive Officer. An Employee who
      is
      eligible to participate in the Plan pursuant to this Section shall begin
      participation on such date as the Chief Executive Officer shall determine in
      writing and shall remain a Participant for as long as the Participant remains
      an
      Employee or until removed from the Participant List by the Chief Executive
      Officer. 

    

    Section
      2.2 CEO/President.
      Additionally, the Board has specifically provided that the Chief Executive
      Officer and the President shall automatically be eligible to participate in
      the
      Plan effective as of July 1, 2005, and receive the benefit calculated in
      accordance with Addendum A without further action on the part of the Board.
      The
      names of the Chief Executive Officer and the President and the terms of their
      participation shall also be included on the Participant List; however, amendment
      of the Participant List with respect to the Chief Executive Officer or the
      President shall require prior approval by the Board.

    

    Section
      2.3 Employees
      of Related Entities.
      With the
      prior written consent of the Chief Executive Officer, Employees of subsidiaries
      and affiliates of the Company may participate in the Plan if the related entity
      has adopted the Plan. The adopting employers shall be shown on Exhibit 1
      attached to and made a part of this document. 

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    ARTICLE
      3. PLAN BENEFITS

    

    Section
      3.1. In
      General.
      After
      the end of a Plan Year, a Participant other than the Chief Executive Officer
      or
      the President may receive a cash payment for such Plan Year on a one-time basis
      or on a recurring basis as designated by the Chief Executive Officer. The amount
      of the cash payment for each Participant shall be calculated as set forth on
      Addendum A and shall be paid, less applicable tax and other required
      withholdings, to the Participant by check no later than 75 days after the end
      of
      the applicable Plan Year. Addendum A may be amended from time to time with
      respect to Participants other than the Chief Executive Officer and the
      President, and such amendment shall not require formal amendment of the Plan
      but
      shall require the prior written approval of the Chief Executive
      Officer.

    

    Section
      3.2 CEO/President.
      After
      the end of each Plan Year, the Chief Executive Officer and the President shall
      receive a cash payment for such Plan Year in the amount provided in Addendum
      A.
      The amount of the cash payment for each of the Chief Executive Officer and
      the
      President shall be calculated as set forth on Addendum A and shall be paid
      to
      the Chief Executive Officer or the President, as the case may be, less
      applicable tax and other required withholdings, by check no later than 75 days
      after the end of the applicable Plan Year. Addendum A may not be amended with
      respect to the Chief Executive Officer or the President without the prior
      approval of the Board.

    

    ARTICLE
      4. ADMINISTRATION

    

    Section
      4.1. Sole
      Responsibility.
      The
      Company has established and maintains the Plan solely for the benefit of the
      Employees. Subject to the authority delegated herein to the Chief Executive
      Officer, the Board shall be solely responsible for the operation and
      administration of the Plan.

    

    Section
      4.2 Powers.
      Subject
      to the authority delegated herein to the Chief Executive Officer, the Board
      shall have the power and authority in its sole, absolute and uncontrolled
      discretion to control and manage the operation and administration of this Plan
      and shall have all powers necessary to accomplish these purposes. Any
      determination by the Board with respect to the Plan shall be final and binding
      on all Employees and Participants and anyone claiming under or through any
      of
      them.

    

    Section
      4.3. Delegation
      of Authority.
      Any
      authority, power, duty, function or responsibility of the Chief Executive
      Officer, as set forth in the Plan, may be delegated in whole or in part in
      writing by such Chief Executive Officer to such person(s) and in such manner
      the
      Chief Executive Officer chooses. The authority, power, duty, function or
      responsibility of the delegate shall thereupon be deemed to be that of the
      Chief
      Executive Officer for purposes of this Plan. The Chief Executive Officer and
      any
      such delegate may further employ such counsel or agents as the Chief Executive
      Officer may deem appropriate to perform his or her functions hereunder. Any
      determination by the Chief Executive Officer or his or her delegate pursuant
      to
      the Chief Executive Officer’s delegated authority hereunder shall be final and
      binding on all Employees and Participants and anyone claiming under or through
      any of them. The authority delegated to the Chief Executive Officer hereunder
      shall be exercised at all times in accordance with the written policies
      established by the Board for compensating management employees of the Company
      and its subsidiaries and affiliates.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    Section
      4.4 Limitation
      of Liability.
      Neither
      the Board nor any member thereof, nor the Chief Executive Officer, nor any
      delegate of any of them, shall be liable for any act, omission, interpretation,
      construction or determination made in good faith in connection with the Plan,
      and the members of the Board and the Chief Executive Officer (and any delegate
      thereof) shall be entitled in all cases to indemnification and reimbursement
      by
      the Company in respect of any claim, loss, damage or expense (including, without
      limitation, attorneys’ fees) arising out of or resulting therefrom to the
      fullest extent permitted by law and/or under any directors and officers
      liability insurance coverage which may be in effect from time to
      time.

    

    ARTICLE
      5. AMENDMENT AND TERMINATION

    

    Section
      5.1 Amendment
      of the Plan.
      The
      Company shall have the right by action of the Board at any time to modify,
      alter
      or amend the Plan in whole or in part, including but not limited to any Addendum
      and Participant List, provided, however, that with respect to any Employee
      other
      than the Chief Executive Officer and the President, any Addendum and Participant
      List may also be amended by action of the Chief Executive Officer without action
      of the Board. 

    

    Section
      5.2 Termination
      of the Plan.
      The
      Company reserves the right at any time by action of the Board to terminate
      the
      Plan at any time in whole or in part, including but not limited to any addendum
      hereto. 

    

    ARTICLE
      6. MISCELLANEOUS

    

    Section
      6.1. Governing
      Law.
      This
      Plan shall be construed, regulated and administered in accordance with the
      laws
      of the State of Tennessee.

    

    Section
      6.2 Construction.
      The
      headings and subheadings in the Plan have been inserted for convenience of
      reference only and shall not affect the construction of the provisions hereof.
      In any necessary construction the masculine shall include the feminine, and
      the
      singular shall include the plural, and vice versa.

    

    Section
      6.3. Participant's
      Rights.
      No
      Participant in the Plan shall acquire any right to be retained in the employ
      of
      the Company or any subsidiary or affiliate of the Company by virtue of the
      Plan,
      nor, except as otherwise expressly provided herein, shall a Participant have
      any
      right or interest in and to any benefit under the Plan upon a Participant’s
      dismissal or upon a Participant’s voluntary termination of employment. Unless
      otherwise determined by the Board or the Chief Executive Officer, neither an
      individual’s status as an Employee nor his or her participation in the Plan for
      any Plan Year entitles such individual to participate in the Plan for any
      subsequent Plan Year. Nothing contained herein shall be deemed to create a
      trust
      of any kind or any fiduciary relationship between the Company and any
      Participant. To the extent that any Participant acquires a right to receive
      payments from the Company under the Plan, such right shall be no greater than
      the right of any unsecured general creditor of the Company. The interest of
      any
      Participant under the Plan shall not be transferable or alienable by him or
      her
      either by pledge, assignment or in any other manner, and after the Participant’s
      lifetime shall inure to the benefit of and be binding upon the Participant’s
      beneficiary or beneficiaries and/or estate. 

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    Section
      6.4. Severability.
      In case
      any provision of this Plan shall be held illegal or invalid for any reason,
      such
      illegality or invalidity shall not affect the remaining parts of this Plan,
      and
      this Plan shall be construed and enforced as if such illegal and invalid
      provisions had never been inserted herein.

    

    Section
      6.5. Tax
      Withholding.
      The
      Company shall have the right to take such action as it deems necessary or
      appropriate to satisfy any requirement under federal, state or local law to
      withhold taxes or other amounts.

    

    

    IN
      WITNESS WHEREOF, the Company has caused this Plan to be executed this 11th
      day
      of September, 2006.

    

    

    BUCKEYE
      TECHNOLOGIES INC. 

    

    

    

    By:
      /s/ John B. Crowe     

    John
      B.
      Crowe, Chief Executive Officer

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      1

    

    BUCKEYE
      TECHNOLOGIES INC.

    RETIREMENT
      REPLACEMENT PLAN

    

    

    ADOPTING
      EMPLOYERS:

    

    Buckeye
      Technologies Inc.

    

    Buckeye
      Florida L.P.

    

    Buckeye
      Florida Corporation

    

    Buckeye
      Building Fibers LLC.

    

    Buckeye
      Lumberton Inc.

    

    Buckeye
      Mt. Holly LLC

    

    Such
      other wholly owned direct and indirect subsidiaries of Buckeye Technologies
      Inc.
      as may adopt the Plan from time to time with the approval of the Chief Executive
      Officer.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    ADDENDUM
      A

    RETIREMENT
      REPLACEMENT BENEFIT 

    

    Employee(s)
      listed on Participant List A shall receive a cash payment for each Plan Year
      that such payment is approved by the Chief Executive Officer (or, in the case
      of
      the Chief Executive Officer and the President, for each Plan Year in accordance
      with the terms of the Plan), beginning with the Effective Date set forth on
      Participant List A, equal to the difference between (A) and (B),
      where:

    

    (A)
      is
      the employer contribution which would have been made to the Employee's account
      under the Buckeye Retirement Plan for that Plan Year if (i) the Employee’s
      participation and service in the Buckeye Retirement Plan commenced as of the
      Effective Date set forth on Participant List A, and (ii) for purposes of
      determining said contribution the Employee was credited as of such date and
      thereafter with the number of years of service set forth on Participant List
      A
      in addition to the employee’s actual years of service (years of actual service
      plus years of imputed service may not exceed a maximum of twenty (20) years);
      and

    

    (B)
      is
      the contribution (excluding the Employee’s 401(k) contributions and the matching
      contribution made with respect thereto) which is actually allocated to the
      Employee's account under the Buckeye Retirement Plan for that Plan
      Year.

    

    The
      cash
      payment for each Plan Year may not exceed 4% of the Employee’s pay as pay is
      defined in the Buckeye Retirement Plan.

    

    For
      the
      Plan Year beginning on July 1, 2005, the cash payment for each Participant
      shall
      be the amount indicated on Participant List A.SECOND
      AMENDED AND RESTATED LOAN AGREEMENT

    

    -
      Among -

    

    MOOG
      INC.

    

    as
      Borrower

    

    -
      And -

    

    THE
      LENDERS PARTY HERETO

    

    and

    

    HSBC
      BANK USA, NATIONAL ASSOCIATION

    as
      Administrative Agent, Swingline Lender, an Issuing Bank and
      Arranger

    

    and

    

    MANUFACTURERS
      AND TRADERS TRUST COMPANY

    as
      Syndication Agent

    

    and

    

    BANK
      OF AMERICA, N.A.

    as
      Co-Documentation Agent

    

    and

    

    JPMORGAN
      CHASE BANK, N.A.

    as
      Co-Documentation Agent

    

    Dated:
      as of October 25, 2006

    
      
      

      
        

        

      

    

    

    

     

     

    TABLE
      OF CONTENTS

    PAGE

    
      
        	
                ARTICLE
                  I. DEFINITIONS

              	
                2

              
	
                1.1

              	
                Definitions

              	
                2

              
	
                1.2

              	
                Accounting
                  Terms

              	
                29

              
	
                1.3

              	
                Exchange
                  Rates; Currency Equivalents

              	
                30

              
	
                1.4

              	
                European
                  Economic and Monetary Union Provisions

              	
                30

              
	
                1.5

              	
                Unavailability
                  of Alternative Currency Loans

              	
                32

              
	
                1.6

              	
                Times
                  of Day

              	
                32

              
	
                1.7

              	
                Letters
                  of Credit Amounts

              	
                32

              
	 	 
	
                ARTICLE
                  II. THE CREDIT

              	
                32

              
	
                2.1

              	
                The
                  Revolving Credit

              	
                32

              
	
                2.2

              	
                The
                  Notes

              	
                35

              
	
                2.3

              	
                Swingline
                  Loans

              	
                36

              
	
                2.4

              	
                Letters
                  of Credit

              	
                38

              
	
                2.5

              	
                Funding
                  of Borrowings

              	
                45

              
	
                2.6

              	
                Interest

              	
                46

              
	
                2.7

              	
                Prepayments

              	
                49

              
	
                2.8

              	
                Use
                  of Proceeds

              	
                50

              
	
                2.9

              	
                Special
                  Provisions Governing Libor Loans - Increased Costs

              	
                50

              
	
                2.10

              	
                Required
                  Termination and Repayment of Libor Loans

              	
                51

              
	
                2.11

              	
                Taxes

              	
                52

              
	
                2.12

              	
                Commitment
                  Fee

              	
                53

              
	
                2.13

              	
                Revolving
                  Loan Commitment Termination and Reduction

              	
                53

              
	
                2.14

              	
                Payments

              	
                53

              
	
                2.15

              	
                Payments
                  with Respect to Defaulting Lenders

              	
                54

              
	
                2.16

              	
                Upfront
                  Fees

              	
                54

              
	
                2.17

              	
                Administrative
                  Agent Fees

              	
                54

              
	
                2.18

              	
                Substitution
                  of Lender

              	
                55

              
	
                2.19

              	
                Yield
                  Protection

              	
                55

              
	
                2.20

              	
                Changes
                  in Capital Adequacy Regulations

              	
                56

              
	
                2.21

              	
                Lender
                  Statements; Survival of Indemnity

              	
                57

              
	
                 

              	 
	
                ARTICLE
                  III. CONDITIONS TO THE CREDIT

              	
                57

              
	
                3.1

              	
                No
                  Default

              	
                57

              
	
                3.2

              	
                Representations
                  and Warranties

              	
                58

              
	
                3.3

              	
                Proceedings

              	
                58

              
	
                3.4

              	
                Closing
                  Conditions

              	
                58

              
	
                3.5

              	
                Conditions
                  to Subsequent Borrowing and Issuance

              	
                60

              
	
                3.6

              	
                Subsequent
                  Extensions of Credit

              	
                61

              
	
                 

              	 
	
                ARTICLE
                  IV. REPRESENTATIONS AND WARRANTIES

              	
                61

              
	
                4.1

              	
                Corporate
                  Status

              	
                62

              
	
                4.2

              	
                Valid
                  and Binding Obligation

              	
                62

              

      

       

      
        
           

        

        
          -i-

          
            

          

        

        
           

        

      

       

      
        	
                4.3

              	
                No
                  Pending Litigation

              	
                62

              
	
                4.4

              	
                No
                  Consent or Filing

              	
                62

              
	
                4.5

              	
                No
                  Violations

              	
                63

              
	
                4.6

              	
                Financial
                  Statements

              	
                63

              
	
                4.7

              	
                No
                  Material Adverse Change

              	
                63

              
	
                4.8

              	
                Tax
                  Returns and Payments

              	
                63

              
	
                4.9

              	
                Title
                  to Properties, etc

              	
                64

              
	
                4.10

              	
                Lawful
                  Operations, etc

              	
                64

              
	
                4.11

              	
                Environmental
                  Matters

              	
                65

              
	
                4.12

              	
                Compliance
                  with ERISA

              	
                65

              
	
                4.13

              	
                Investment
                  Company Act, etc

              	
                66

              
	
                4.14

              	
                Insurance

              	
                66

              
	
                4.15

              	
                Burdensome
                  Contracts; Labor Relations

              	
                66

              
	
                4.16

              	
                Liens

              	
                67

              
	
                4.17

              	
                Defaults

              	
                67

              
	
                4.18

              	
                Anti-Terrorism
                  Law Compliance

              	
                67

              
	
                4.19

              	
                Intellectual
                  Property

              	
                67

              
	
                4.20

              	
                Accuracy
                  of Information, etc

              	
                68

              
	 	 
	
                ARTICLE
                  V. AFFIRMATIVE COVENANTS

              	
                68

              
	
                5.1

              	
                Payments

              	
                68

              
	
                5.2

              	
                Reporting
                  Requirements

              	
                68

              
	
                5.3

              	
                Books,
                  Records and Inspections

              	
                71

              
	
                5.4

              	
                Insurance

              	
                72

              
	
                5.5

              	
                Payment
                  of Taxes and Claims

              	
                72

              
	
                5.6

              	
                Corporate
                  Franchises

              	
                73

              
	
                5.7

              	
                Good
                  Repair

              	
                73

              
	
                5.8

              	
                Compliance
                  with Law

              	
                73

              
	
                5.9

              	
                Compliance
                  with Environmental Laws

              	
                73

              
	
                5.10

              	
                Certain
                  Subsidiaries to Become Guarantors

              	
                74

              
	
                5.11

              	
                Additional
                  Security; Further Assurances.

              	
                75

              
	
                5.12

              	
                Accounting;
                  Reserves; Tax Returns

              	
                76

              
	
                5.13

              	
                Liens
                  and Encumbrances

              	
                76

              
	
                5.14

              	
                Defaults
                  and Material Adverse Effects

              	
                76

              
	
                5.15

              	
                Further
                  Actions

              	
                76

              
	
                 

              	 
	
                ARTICLE
                  VI. FINANCIAL COVENANTS

              	
                76

              
	
                6.1

              	
                Consolidated
                  Net Worth

              	
                77

              
	
                6.2

              	
                Interest
                  Coverage Ratio

              	
                77

              
	
                6.3

              	
                Leverage
                  Ratio

              	
                77

              
	
                6.4

              	
                Consolidated
                  Capital Expenditures

              	
                77

              
	
                 

              	 
	
                ARTICLE
                  VII. NEGATIVE COVENANTS

              	
                77

              
	
                7.1

              	
                Indebtedness

              	
                77

              
	
                7.2

              	
                Encumbrances

              	
                78

              
	
                7.3

              	
                Investments
                  and Guaranty Obligations

              	
                79

              

      

       

      
        
           

        

        
          -ii-

          
            

          

        

        
           

        

      

       

      
        	
                7.4

              	
                Restricted
                  Payments

              	
                80

              
	
                7.5

              	
                Limitation
                  on Certain Restrictive Agreements

              	
                81

              
	
                7.6

              	
                Material
                  Indebtedness Agreements

              	
                81

              
	
                7.7

              	
                Changes
                  in Business

              	
                82

              
	
                7.8

              	
                Consolidation,
                  Merger, Acquisitions, Asset Sales, etc

              	
                82

              
	
                7.9

              	
                Transactions
                  with Affiliates.

              	
                83

              
	
                7.10

              	
                Fiscal
                  Years, Fiscal Quarters

              	
                84

              
	
                7.11

              	
                Anti-Terrorism
                  Laws

              	
                84

              
	
              	 
	
                ARTICLE
                  VIII. EVENTS OF DEFAULT

              	
                84

              
	
                8.1

              	
                Events
                  of Default

              	
                84

              
	
                8.2

              	
                Effects
                  of an Event of Default

              	
                87

              
	
                8.3

              	
                Remedies

              	
                87

              
	
                8.4

              	
                Application
                  of Certain Payments and Proceeds

              	
                87

              
	 	 
	
                ARTICLE
                  IX. EXPENSES

              	
                88

              
	
                9.1

              	
                Expenses

              	
                88

              
	
                9.2

              	
                Indemnification

              	
                88

              
	 	 
	
                ARTICLE
                  X. THE AGENTS AND ISSUING BANKS

              	
                89

              
	
                10.1

              	
                Appointment
                  and Authorization

              	
                89

              
	
                10.2

              	
                Waiver
                  of Liability of Administrative Agent

              	
                90

              
	
                10.3

              	
                Note
                  Holders

              	
                91

              
	
                10.4

              	
                Consultation
                  with Counsel

              	
                91

              
	
                10.5

              	
                Documents

              	
                91

              
	
                10.6

              	
                Administrative
                  Agent and Affiliates

              	
                91

              
	
                10.7

              	
                Knowledge
                  of Default

              	
                92

              
	
                10.8

              	
                Enforcement

              	
                92

              
	
                10.9

              	
                Action
                  by Administrative Agent

              	
                92

              
	
                10.10

              	
                Notices,
                  Defaults, etc

              	
                92

              
	
                10.11

              	
                Indemnification
                  of Administrative Agent

              	
                92

              
	
                10.12

              	
                Successor
                  Administrative Agent

              	
                93

              
	
                10.13

              	
                Lenders’
                  Independent Investigation

              	
                93

              
	
                10.14

              	
                Amendments,
                  Consents

              	
                94

              
	
                10.15

              	
                Funding
                  by Administrative Agent

              	
                94

              
	
                10.16

              	
                Sharing
                  of Payments

              	
                95

              
	
                10.17

              	
                Payment
                  to Lenders

              	
                95

              
	
                10.18

              	
                Tax
                  Withholding Clause

              	
                95

              
	
                10.19

              	
                USA
                  Patriot Act

              	
                96

              
	
                10.20

              	
                Other
                  Agents

              	
                97

              
	
                10.21

              	
                Issuing
                  Banks

              	
                97

              
	
                10.22

              	
                Benefit
                  of Article X

              	
                97

              
	 	 
	
                ARTICLE
                  XI. MISCELLANEOUS

              	
                97

              
	
                11.1

              	
                Amendments
                  and Waivers

              	
                97

              
	
                11.2

              	
                Classified
                  Programs

              	
                97

              

      

       

      
        
           

        

        
          -iii-

          
            

          

        

        
           

        

      

       

      
        	
                11.3

              	
                Delays
                  and Omissions

              	
                98

              
	
                11.4

              	
                Assignments/Participation

              	
                98

              
	
                11.5

              	
                Successors
                  and Assigns

              	
                99

              
	
                11.6

              	
                Notices

              	
                99

              
	
                11.7

              	
                Governing
                  Law

              	
                100

              
	
                11.8

              	
                Counterparts

              	
                101

              
	
                11.9

              	
                Titles

              	
                101

              
	
                11.10

              	
                Inconsistent
                  Provisions

              	
                101

              
	
                11.11

              	
                Course
                  of Dealing

              	
                101

              
	
                11.12

              	
                USA
                  Patriot Act Notification

              	
                101

              
	
                11.13

              	
                Judgment
                  Currency

              	
                102

              
	
                11.14

              	
                CONSENT
                  TO JURISDICTION

              	
                102

              
	
                11.15

              	
                JURY
                  TRIAL WAIVER

              	
                102

              

      

    

    

    Exhibit
      A  - Replacement
      Revolving Note

    Exhibit
      B - Alternative
      Currency Note

    Exhibit
      C - Swingline
      Note

    Exhibit
      D  - Request
      Certificate

    Exhibit
      E  - Compliance
      Certificate

    Exhibit
      F - Assignment
      and Assumption

    Schedule
      1  - Pension
      Plans

    Schedule
      2.1  - Lenders’
      Commitments

    Schedule
      2.4 - Existing
      Letters of Credit

    Schedule
      4.1 - Subsidiaries

    Schedule
      4.3  -
       Pending
      Litigation

    Schedule
      7.1  - Permitted
      Indebtedness

    Schedule
      7.2  -
       Permitted
      Encumbrances

    Schedule
      7.3  -
       Permitted
      Guaranties

    
      
         

      

      
        -iv-

        
          

        

      

      
         

      

    

     

    WITNESSETH

    

    SECOND
      AMENDED AND RESTATED LOAN AGREEMENT
      dated as
      of October 25, 2006 (“Agreement”) among MOOG
      INC.,
      a New
      York corporation with its principal place of business at Jamison Road and Seneca
      Street, East Aurora, New York 14052-0018 (“Borrower”), the several banks and
      other financial institutions from time to time parties to this Agreement
      (individually, a “Lender” and collectively, the “Lenders”) and HSBC
      BANK USA,
      NATIONAL
      ASSOCIATION,
      a bank
      organized under the laws of the United States of America, with an office at
      Commercial Banking Department, One HSBC Center, Buffalo, New York 14203 as
      Administrative Agent for the Lenders, Swingline Lender, an Issuing Bank and
      as
      the Arranger, and MANUFACTURERS
      AND TRADERS TRUST COMPANY
      as
      Syndication Agent, and BANK
      OF AMERICA, N.A.
      as a
      Co-Documentation Agent and JPMORGAN
      CHASE BANK, N.A.
      as a
      Co-Documentation Agent.

    

    BACKGROUND

    

    A. Borrower,
      the Administrative Agent and most of the Lenders previously entered into an
      Amended and Restated Loan Agreement dated as of March 3, 2003 as modified
      through Modification No. 11 thereto dated as of August 15, 2006 (as so
      modified, the “2003 Agreement”). The 2003 Agreement amended and restated a
      Corporate Revolving and Term Loan Agreement dated as of November 30, 1998,
      as amended through Amendment No. 4 thereto dated as of December 7,
      2001 (as so amended, the “1998 Agreement”) to which Borrower, the Administrative
      Agent and most of the Lenders were a party.

    

    B. The
      2003
      Agreement provided for a $315,000,000 Revolving Loan Facility (“Initial
      Revolving Loan Facility”) and a $75,000,000 Term Loan Facility (“Initial Term
      Facility”) initially secured by liens on Borrower’s personal property assets,
      100% of the stock of certain domestic subsidiaries and pledges of 65% of the
      shares of stock of certain directly-owned foreign subsidiaries, a $12,900,000
      mortgage on Borrower’s New York State real property, unlimited deeds of trust on
      Borrower’s California and Utah real property, and a negative pledge from Moog
      Europe Holdings y Cia Sociedad Commandataria and Moog
      Holdings KG, each of which are entities formed to hold ownership interests
      in certain of Borrower’s foreign subsidiaries. As a result of various
      acquisitions since March 3, 2003, Borrower or certain new domestic
      subsidiaries of Borrower acquired additional real property assets and mortgages
      were granted to the Administrative Agent covering real estate in Murphy, North
      Carolina, Springfield, Pennsylvania, Orrville, Ohio, Blacksburg, Virginia (3
      parcels) and Galax, Virginia.

    

    C. The
      guarantors under the 2003 Agreement were Moog FSC Ltd., a Virgin Islands
      corporation, Curlin Medical Inc., a Delaware corporation,
      Flo-Tork, Inc., a Delaware corporation, Fundamental Technology
      Solutions, Inc., a Delaware corporation, Moog Europe Holdings I LLC, a
      New York limited liability company, and Moog Europe Holdings II LLC, a New
      York limited liability company, each of which secured their guaranty with a
      lien
      on their personal property assets and, in some cases, their real property
      assets.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    D. Pursuant
      to an Omnibus Assignment and Assumption Agreement dated as of the Closing Date
      (as defined below) among Borrower, the lenders party to the 2003 Agreement
      (“2003 Lenders”) and the Administrative Agent, the 2003 Lenders assigned to the
      Administrative Agent the outstanding loans and other obligations under the
      2003
      Agreement, and as further described in Section 2.1(e) of this Agreement,
      the Administrative Agent shall make a subsequent assignment of the Commitments
      hereunder to the Lenders party hereto in the amounts set forth on
      Schedule 2.1 to this Agreement; and

    

    E. The
      intention and desire of the parties hereto is that the loans and other
      obligations of the borrower under the 2003 Agreement, and the rights, liens,
      security interests, mortgages, deeds of trust, negative pledges and other
      collateral security of the agent and the lenders thereunder shall hereafter
      be
      evidenced by this Agreement, the Assignment and Assumptions and the other Loan
      Documents referred to in this Agreement.

    

    

    NOW,
      THEREFORE,
      the
      parties hereby agree that the 2003 Agreement is amended and restated hereby
      and
      agree as follows:

    

    ARTICLE
      I. DEFINITIONS

     

    1.1 Definitions.
      As used
      in this Agreement, unless otherwise specified, the following terms shall have
      the following respective meanings:

     

    “ABR” or “Alternate
      Base Rate”
-
      for
      any day, a rate per annum (rounded upwards, if necessary, to the next 1/16
      of
      1%) equal to the greatest of (i) the Prime Rate, or (ii) the Federal
      Funds Effective Rate from time to time in effect plus 0.5%. Any change in the
      Alternate Base Rate due to a change in the Prime Rate or the Federal Funds
      Effective Rate shall be effective from and including the effective date of
      such
      change in the Prime Rate or Federal Funds Effective Rate,
      respectively.

     

    “ABR
      Loan”
-
      any
      Loan for which interest is calculated based on the Alternate Base Rate plus
      the
      Applicable Margin determined from time to time.

     

    “ABR
      Option”
-
      the
      Rate Option in which interest is based upon the Alternate Base Rate plus the
      Applicable Margin for the applicable Loan.

     

    “Administrative
      Agent”
-
      HSBC
      Bank as Administrative Agent for the Lenders, and any successor to HSBC
      Bank as such Administrative Agent for the Lenders, and any replacements or
      successors to HSBC Bank as provided in this Agreement.

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    “Affiliate”
or
      “Affiliates”
-
      individually or collectively, any Person that directly or indirectly, through
      one or more intermediaries, Controls, or is Controlled by, or is under Common
      Control with the Person specified. Notwithstanding the foregoing, no individual
      shall be considered an Affiliate of a Person solely by reason of such
      individual’s position as an officer or director of such Person or of an
      Affiliate of such Person.

     

    “Agents”
-
      collectively, the Administrative Agent, the Syndication Agent and the
      Co-Documentation Agents.

     

    “Agreement”
-
      as
      defined in the opening paragraph hereof, as the same may be amended from time
      to
      time in accordance with the terms hereof.

     

    “Alternative
      Currency”
-
      with
      respect to Alternative Currency Sublimits, Alternative Currency Loans or
      Alternative Currency Letters of Credit, the following currencies: Euro, Pounds
      Sterling and Japanese Yen in each case to the extent freely transferable and
      convertible into Dollars.

     

    “Alternative
      Currency Facility”
-
      has
      the meaning specified in Section 2.1(b).

     

    “Alternative
      Currency Letter of Credit”
-
      any
      Letter of Credit denominated in an Alternative Currency.

     

    “Alternative
      Currency Loan”
or
      “Alternative
      Currency Loans”
-
      individually and collectively, each Loan by a Lender to Borrower under
      Section 2.1(b) of this Agreement.

     

    “Alternative
      Currency Note”
-
      a
      promissory note of the Borrower payable to the order of a Lender, in
      substantially the form of Exhibit B hereto, evidencing the aggregate
      indebtedness of the Borrower to such Lender resulting from the Alternative
      Currency Loans made by such Lender.

     

    

    
      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

    

    

    “Alternative
      Currency Sublimit”
-
      with
      respect to any Lender, the amount set forth opposite such Lender’s name on
      Schedule 2.1 hereto under the caption “Amount of Alternative Currency
      Sublimit” or, if such Lender has entered into one or more Assignments and
      Assumptions, as set forth for such Lender in the records maintained by the
      Administrative Agent as such Lender’s “Alternative Currency Sublimit,” as such
      amount may be reduced at or prior to such time pursuant to the terms of this
      Agreement. The Alternative Currency Sublimits of all the Lenders equal the
      Dollar Equivalent of $75,000,000 in the aggregate as of the date
      hereof.

     

    “Anti-Terrorism
      Laws”
-
      any
      Laws relating to terrorism or money laundering, including Executive Order No.
      13224, the USA Patriot Act, the Laws comprising or implementing the Bank Secrecy
      Act, and the Laws administered by the United States Treasury Department’s Office
      of Foreign Asset Control (as any of the forgoing Laws may from time to time
      be
      amended, renewed, extended or replaced).

     

    “Applicable
      Commitment Fee Rate”
-
      (i) initially, until changed in accordance with the following provisions,
      the Applicable Commitment Fee Rate shall be 25 basis points; and
      (ii) commencing with the fiscal quarter of Borrower ended on
      December 30, 2006, and continuing with each fiscal quarter thereafter, the
      Administrative Agent shall determine the Applicable Commitment Fee Rate in
      accordance with the following matrix, based on the Leverage Ratio:

     

    
      	
              Level

            	 	
              Leverage
                Ratio

            	 	
              Commitment
                Fee

            
	 	 	 	 	 
	
              1

            	 	
              Greater
                than 2.50 to 1.0

            	 	
              35bps

            
	
              2

            	 	
              >
                2.00 to 1.0 but ≤ 2.50 to 1.0

            	 	
              30bps

            
	
              3

            	 	
              >
                1.50 to 1.0 but ≤  2.00 to 1.0

            	 	
              25bps

            
	
              4

            	 	
              >
                1.0 to 1.0 but ≤ 1.50 to 1.0

            	 	
              20bps

            
	
              5

            	 	
              <1.0
                to 1.0

            	 	
              17.5bps

            

    

    

    Changes
      in the Applicable Commitment Fee Rate shall become effective three (3) Business
      Days immediately following the date of delivery by Borrower to the
      Administrative Agent of a financial statement and a Compliance Certificate
      required to be delivered pursuant to Sections 5.2(a), (b) and (c) of this
      Agreement, and shall be based upon the Leverage Ratio in effect at the end
      of
      the financial period covered by such financial statement and Compliance
      Certificate. Notwithstanding the foregoing provisions, during any period when
      the Borrower has

    

    
      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

    

    

    failed
      to
      deliver such a financial statement and Compliance Certificate when due, the
      Applicable Commitment Fee Rate shall be applied at Level 1 above as of the
      first Business Day after the date on which such financial statement and
      Compliance Certificate were required to be delivered, regardless of the Leverage
      Ratio at such time, until the date the required financial statement and
      Compliance Certificate have been delivered. Any changes in the Applicable
      Commitment Fee Rate shall be determined by the Administrative Agent in
      accordance with the provisions set forth in this definition and the
      Administrative Agent will promptly provide notice of such determinations to
      the
      Borrower and the Lenders. Any such determination by the Administrative Agent
      shall be conclusive absent manifest error.

    

    “Applicable
      Currency”
-
      as to
      any particular payment or Loan, Dollars or the Alternative Currency in which
      it
      is denominated or is payable.

     

    “Applicable
      Lending Office”
-
      with
      respect to each Lender, such Lender’s Domestic Lending Office in the case of an
      ABR Loan and such Lender’s Libor Lending Office in the case of a Libor
      Loan.

     

    “Applicable
      Margin”
-
      (i) initially, until changed in accordance with the following provisions,
      the Applicable Margin shall be 0.0 basis points for ABR Loans and 100 basis
      points for Libor Loans; (ii) commencing with the fiscal quarter of Borrower
      ended on December 30, 2006, and continuing with each fiscal quarter thereafter,
      the Administrative Agent shall determine the Applicable Margin in accordance
      with the following matrix, based on the Leverage Ratio:

     

    
      	
              Level

            	 	
              Leverage Ratio

            	 	
              ABR
                Option

            	 	
              Libor
                Rate Option

            
	 	 	 	 	 	 	 
	
              1

            	 	
              Greater
                than 2.50
                to 1.0

            	 	
              0%

            	 	
              150
                bps

            
	
              2

            	 	
              >
                2.00 to 1.0 but ≤  2.50 to 1.0

            	 	
              0%

            	 	
              125
                bps

            
	
              3

            	 	
              >
                1.50 to 1.0 but ≤  2.00
                to 1.0

            	 	
              0%

            	 	
              100
                bps

            
	
              4

            	 	
              >
                1.0 to 1.0 but ≤  1.50 to 1.0

            	 	
              0%

            	 	
              87.5
                bps

            
	
              5

            	 	
              <
                1.0 to 1.0

            	 	
              0%

            	 	
              75
                bps

            

    

    

    Changes
      in the Applicable Margin shall become effective three (3) Business Days
      immediately following the date of delivery by Borrower to the Administrative
      Agent of a financial statement and a Compliance Certificate required to be
      delivered pursuant to Sections 5.2(a), (b) and (c) of this Agreement, and
      shall be based upon the Leverage Ratio in effect at the end of the
      financial

    

    
      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

    

    

    period
      covered by such financial statement and Compliance Certificate. Notwithstanding
      the foregoing provisions, during any period when the Borrower has failed to
      deliver such financial statement and Compliance Certificate when due, the
      Applicable Margin shall be applied at Level 1 above as of the first
      Business Day after the date on which such financial statement and Compliance
      Certificate were required to be delivered, regardless of the Leverage Ratio
      at
      such time, until the date the required financial statement and Compliance
      Certificate have been delivered. Any changes in the Applicable Margin shall
      be
      determined by the Administrative Agent in accordance with the provisions set
      forth in this definition and the Administrative Agent will promptly provide
      notice of such determinations to the Borrower and the Lenders. Any such
      determination by the Administrative Agent shall be conclusive absent manifest
      error.

    

    “Applicable
      Percentage”
-
      with
      respect to any Lender, at any time, the percentage of the Total Commitment
      represented by such Lender’s Commitment. Each Lender’s initial Applicable
      Percentage based on the Total Commitment as of the Closing Date is set forth
      on
      Schedule 2.1 to this Agreement. If the Commitments have terminated or
      expired, the Applicable Percentages shall be determined based upon the Total
      Commitment most recently in effect, giving effect to any
      assignments.

     

    “Arranger”
-
      HSBC
      Bank and any successor of HSBC Bank as the Arranger under this
      Agreement.

      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

    “Asset
      Sale”
-
      the
      sale, lease, transfer or other disposition (including by means of sale and
      lease-back transactions, and by means of mergers, consolidations, amalgamations
      and liquidations of a corporation, partnership or limited liability company
      of
      the interests therein of Borrower or any Subsidiary) by Borrower or any
      Subsidiary to any Person of any such Borrower’s or such Subsidiary’s respective
      assets, provided that the term Asset Sale specifically excludes (i) any
      sales, transfers or other dispositions of inventory, or obsolete, worn-out
      or
      excess furniture, fixtures, equipment or other property, real or personal,
      tangible or intangible, in each case in the ordinary course of business;
      (ii) any actual or constructive total loss of property or the use thereof,
      resulting from destruction, damage beyond repair or other rendition of such
      property as permanently unfit for normal use from any casualty or similar
      occurrence whatsoever; (iii) the destruction or damage of a portion of such
      property from any casualty or similar occurrence whatsoever under circumstances
      in which such damage cannot reasonably be expected to be repaired, or such
      property cannot reasonably be expected to be restored to its condition
      immediately prior to such destruction or damage, within ninety (90) days after
      the occurrence of such destruction or damage or such longer reasonable time
      period as determined under the Borrower’s plan of restoration or replacement for
      such property established within a 90 day period after such occurrence
      provided such plan is acceptable to the Administrative Agent in its reasonable
      judgment; (iv) the condemnation, confiscation or seizure of, or requisition
      of title to or use of any property; or (v) in the case of any unmovable
      property located upon a leasehold, the termination or expiration of such
      leasehold.

     

    “Assigned
      Dollar Value”
-
      (i) in respect of any Loan denominated in Dollars, the amount thereof,
      (ii) in respect of the undrawn or stated amount of any Alternative Currency
      Letter of Credit, the Dollar Equivalent thereof determined as of a Valuation
      Date with respect to such Letter of Credit (iii) in respect of Alternative
      Currency Letter of Credit reimbursement obligations, the Dollar Equivalent
      thereof determined as of the Valuation Date with respect to the payment made
      by
      the Issuing Bank giving rise thereto, and (iv) in respect of a Loan
      denominated in an Alternative Currency, the Dollar Equivalent thereof as of
      a
      Valuation Date with respect to such Loan.

     

    “Assignment
      and
      Assumption”
-
      an
      assignment and assumption agreement entered into by a Lender and an assignee
      and
      accepted by the Administrative Agent, substantially in the form of
      Exhibit F hereto with all blanks appropriately completed.

     

    “Available
      Amount”
-
      (a)
      with respect to any Letter of Credit issued in Dollars, the stated or face
      amount of such Letter of Credit to the extent available at the time for drawing
      (subject to presentment of all requisite documents) and (b) with respect to
      any Alternative Currency Letter of Credit, the Assigned Dollar Value of the
      stated or face amount of such Letter of Credit to the extent

     

    

    
      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

    

    

    available
      at the time for drawing (subject to presentment of all requisite documents),
      in
      either case as the same may be increased or decreased from time to time in
      accordance with the terms of such Letter of Credit or Alternative Currency
      Letter of Credit, as the case may be.

     

    “Availability
      Period”
-
      the
      period from the Closing Date to, but excluding, the earlier of the Revolving
      Credit Maturity Date and the date of termination of the
      Commitments.

     

    “Borrower”
-
      as
      defined in the opening paragraph to this Agreement.

     

    “Breakage
      Fee”
-
      an
      amount determined by the applicable Lender at the time of a prepayment of a
      Libor Loan to be equal to the sum of the costs, losses, expenses and penalties
      incurred by such Lender as a result of such prepayment; any loss to any Lender
      shall be deemed to be an amount determined by such Lender to be the excess,
      if
      any, of (i) the amount of interest which would have accrued on the principal
      amount of such Libor Loan had such event not occurred, for the period from
      the
      date of such event to the last day of the then current Interest Period therefor,
      over (ii) the amount of interest which would accrue on such principal amount
      for
      such period at the interest rate which such Lender would bid were it to bid,
      at
      the commencement of such period for deposits of Dollars or the applicable
      Alternative Currency of a comparable amount and period from other banks in
      the
      London Interbank Market. Any Lender’s calculation of any Breakage Fee shall be
      conclusive absent manifest error.

     

    “Business
      Day”
-
      (a) for all purposes other than as set forth in clause (b) below, any day
      excluding Saturday, Sunday, and any day in which banks in New York, New York
      are
      authorized or required by law or governmental action to close, and (b) with
      respect to Libor Loans, any day which is a Business Day described in clause
      (a)
      and which is also a day for trading by and between banks in U.S. dollar deposits
      in the London Interbank Market.

     

    “Capital
      Lease”
-
      as
      applied to any Person means any lease of any property (whether real, personal
      or
      mixed) by that Person as lessee that, in conformity with GAAP, should be
      accounted for as a capital lease on the balance sheet of that
      Person.

     

    “Capitalized
      Lease Obligations”
-
      all
      obligations under Capital Leases of the Borrower or any Subsidiary, without
      duplication, in each case taken at the amount thereof accounted for as
      liabilities identified as “capital lease obligations” (or any similar words) on
      a consolidated balance sheet of the Borrower and any Subsidiary prepared in
      accordance with GAAP.

     

    

    
      
        
           

        

        
          -8-

          
            

          

        

        
           

        

      

    

    

    “Change
      in
      Control”
-
      if
      (i) any Person or group (within the meaning of the Exchange Act and the rules
      of
      the SEC thereunder as in effect on the date hereof), except any Pension Plan
      or
      employee stock ownership plan of Borrower, becomes the owner directly or
      indirectly of 30% or more of the aggregate voting power represented by the
      Equity Interests of Borrower having the power to vote for the election of
      directors generally; or (ii) a majority of the members of the Board of
      Directors of Borrower are not Continuing Directors. 

     

    “Closing
      Date”
-
      October 25, 2006.

     

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

     

    “Collateral”
-
      any
“Collateral” as defined in any Security Document, together with any other real
      or personal property collateral covered by any Security Document.

     

    “Commitment”
-
      with
      respect to each Lender, the commitment of such Lender to make Revolving Loans,
      to acquire participations in Letters of Credit, including Alternative Currency
      Letters of Credit, to make or otherwise acquire participations in Alternative
      Currency Loans and to acquire participations in Swingline Loans hereunder,
      expressed as an amount representing the maximum aggregate amount of such
      Lender’s Revolving Credit Exposure hereunder, as such commitment may be
      (i) reduced from time to time pursuant to Section 2.13 of this Agreement
      and (ii) reduced or increased from time to time pursuant to assignments by
      or to
      such Lender pursuant to Section 11.4 of this Agreement. The initial amount
      of
      each Lender’s Commitment is set forth on Schedule 2.1 to this Agreement, or in
      the Assignment and Assumption pursuant to which such Lender shall have assumed
      its Commitment, as applicable.

     

    “Commitment
      Fee”
-
      as
      defined in Section 2.12 of this Agreement.

     

    “Compliance
      Certificate”
-
      a
      certificate executed by a Responsible Officer of the Borrower substantially
      in
      the form of Exhibit E hereto with all blanks appropriately
      completed.

     

    “Confidential
      Information Materials”
-
      the
      collective reference to the confidential information material with respect
      to
      Borrower and the Revolving Credit distributed to the Lenders at the meeting
      held
      on September 11, 2006 at Borrower’s facility in East Aurora, New
      York.

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    “Consolidated”
or
      “Consolidated
      Basis”
-
      the
      consolidation of the accounts of any entity and its Subsidiaries in accordance
      with GAAP, including principles of consolidation, consistent with those applied
      in the preparation of the consolidated audited financial statements of
      Borrower
      delivered to the Lenders.

     

    “Consolidated
      Capital Expenditures”
-
      for
      any period, the aggregate of all expenditures of Borrower and all Subsidiaries
      during such period determined on a Consolidated Basis that may properly be
      classified as capital expenditures in conformity with GAAP, provided that such
      term shall not include any such expenditure in connection with replacement
      or
      repair of assets to the extent that casualty insurance proceeds or the trade-in
      value of other equipment were used for such expenditure.

     

    “Consolidated
      EBITDA”
      - for
      any period, an amount equal to (i) the sum of the amounts for such period
      of (A) Consolidated Net Income, (B) Consolidated Interest Expense,
      (C) provisions for taxes based on income, (D) total depreciation
      expense, (E) total amortization expense, (F) other non-cash items
      reducing Consolidated Net Income and (G) non-cash stock related expenses minus
      (ii) other non-cash items increasing Consolidated Net Income for such
      period. Notwithstanding anything to the contrary in this definition, for
      purposes of computing the Leverage Ratio hereunder, or in connection with any
      pro-forma calculation required by this Agreement, the term “Consolidated EBITDA”
shall be computed, on a consistent basis, to reflect purchases and acquisitions
      by Permitted Acquisition or otherwise made by Borrower and the Subsidiaries
      during the relevant period as if they occurred at the beginning of such period,
      and Borrower, during the twelve (12) month period following the date of any
      such
      Permitted Acquisition may include in the calculation hereof the necessary
      portion of the adjusted historical results of the entities acquired in
      acquisitions that were achieved prior to the applicable date of the acquisition
      for such time period as is necessary for Borrower to have figures on a trailing
      four fiscal quarter basis from the date of determination with respect to such
      acquired entities.

     

    “Consolidated
      Interest Expense”
      - for
      any period, as determined in accordance with GAAP, total interest expense
      (including that portion attributable to Capital Leases in accordance with GAAP
      and capitalized interest) of Borrower and all Subsidiaries on a Consolidated
      Basis with respect to all outstanding Indebtedness of Borrower and all
      Subsidiaries, including all commissions, discounts and other fees and charges
      owed with respect to letters of credit and bankers’ acceptance financing and
      net

      
        
           

        

        
          -10-

          
            

          

        

        
           

        

      

    costs
      under Hedge Agreements entered into by the Borrower or any Subsidiary, computed
      (a) on a net basis after reduction for any interest income, and
      (b) excluding amortization of discount and amortization of debt issuance
      costs.

     

    “Consolidated
      Net Debt”
-
      as of
      any date of determination, the sum of (i) all Debt of Borrower and all
      Subsidiaries, determined on a Consolidated Basis in accordance with GAAP
less
      aggregate net cash balances of Borrower and all Subsidiaries and
      (ii) letters of credit outstanding (other than that portion of letters of
      credit outstanding representing the aggregate undrawn face amount of letters
      of
      credit which are trade letters of credit issued with respect to the purchase
      and
      sale of goods by Borrower or any Subsidiary).

     

    “Consolidated
      Net
      Income”
-
      for
      any period, the net income (or loss) of Borrower and all Subsidiaries on a
      Consolidated Basis for such period taken as a single accounting period
      determined in conformity with GAAP.

     

    “Consolidated
      Net Worth”
-
      as of
      any date of determination, total shareholders’ equity of Borrower and all
      Subsidiaries on a Consolidated Basis determined in conformity with GAAP,
      adjusted to maintain the amounts of accumulated other comprehensive loss at
      the
      level in existence as of September 30, 2006.

     

    “Consolidated
      Total
      Assets”
-
      as at
      any date of determination, all amounts that would, in conformity with GAAP,
      be
      set forth opposite the caption “total assets” (or a similar caption) on a
      Consolidated balance sheet of Borrower and all Subsidiaries at such
      date.

     

    “Contingent
      Obligation”
-
      of a
      Person means any agreement, undertaking or arrangement by which such Person
      assumes, guaranties, endorses, contingently agrees to purchase or provide funds
      for the payment of, or otherwise becomes or is contingently liable upon, the
      obligation or liability of any other Person, or agrees to maintain the net
      worth
      or working capital or other financial condition of any other Person, or
      otherwise assures any creditor of such other Person against loss, including,
      without limitation, any comfort letter, operating agreement or take-or-pay
      contract. The amount of any Contingent Obligation shall be equal to the amount
      of the obligation that is so guarantied or supported that is actually
      outstanding or otherwise due and payable from time to time, if a fixed and
      determinable amount or if there is no fixed or determinable amount, either
      (x)
      if a maximum amount is guaranteed, the maximum amount or (y) if there is no
      maximum amount, the amount of the obligation that is so guarantied or
      supported.

      
        
           

        

        
          -11-

          
            

          

        

        
           

        

      

    “Continuing
      Director”
-
      as of
      any date of determination, any member of the Board of Directors of Borrower
      who
      (i) was a member of such Board of Directors on the date of this Agreement;
      or (ii) was nominated for election or elected to such Board of Directors
      with the approval of a majority of the Continuing Directors who were member
      of
      such Board of Directors at the time of such nomination or election.

     

    “Control”,
      “Controlling”,
      “Controlled
      by”,
      and
“under
      Common Control with”
-
      the
      possession, directly or indirectly, of the power to either (i) vote 20% or
      more
      of the Equity Interests having voting power for the election of directors,
      or
      persons performing similar functions, of a Person or (ii) direct or cause the
      direction of the management and policies of a Person, whether by contract or
      otherwise; provided however,
      no
      Pension Plan or employee stock ownership plan of Borrower shall be considered
      to
      have Control of Borrower or any Subsidiary.

     

    “Conversion
      Date”
-
      the
      date on which an ABR Loan converts to a Libor Loan, the date on which a Libor
      Loan converts to an ABR Loan, or the date on which a Libor Loan is continued
      as
      a new Libor Loan.

     

    “Debt”
-
      with
      respect to any Person, any Indebtedness resulting from the borrowing of any
      money or from any deferral of payment of the purchase price for the acquisition
      or Capital Lease of any asset.

     

    “Default”
-
      any
      of the events specified in Article VIII whether or not any requirement for
      the
      giving of notice, the lapse of time, or both, has been satisfied.

     

    “Defaulting
      Lender”
-
      any
      Lender that (i) on any borrowing date fails to make available to the
      Administrative Agent such Lender’s Loans required to be made to Borrower on such
      borrowing date or (ii) shall not have made a payment to an Issuing Bank pursuant
      to Section 2.4 of this Agreement or the Administrative Agent pursuant to
      Section 2.1(d) or 2.3 of this Agreement. Once a Lender becomes a Defaulting
      Lender, such Lender shall continue as a Defaulting Lender until such time as
      such Defaulting Lender makes available to the Administrative Agent the amount
      of
      such Defaulting Lender’s Loans and/or to the Issuing Banks such payments
      requested by such Issuing Banks together with all or other amounts required
      to
      be paid to the Administrative Agent and/or the Issuing Banks pursuant to this
      Agreement.

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

     

    “Designated
      Hedge Agreement”
-
      any
      Hedge Agreement to which Borrower or any of its Subsidiaries is a party and
      as
      to which a Lender or any of its Affiliates is a counterparty that, pursuant
      to a
      written instrument signed by the Administrative Agent, has been designated
      as a
      Designated Hedge Agreement so that the Borrower’s or Subsidiaries’
counterparty’s credit exposure thereunder will be entitled to share in the
      benefits of any Guaranty and the Security Documents to the extent such Guaranty
      and such Security Documents provide guarantees or security for creditors of
      Borrower or any Subsidiary under Designated Hedge Agreements. Notwithstanding
      the foregoing, any Hedge Agreement relating to any Indebtedness of Borrower
      under this Agreement shall be deemed to be a Designated Hedge Agreement without
      the need for a written instrument signed by the Administrative
      Agent.

     

    “Directly-Owned
      Foreign Subsidiary”
-
      any
      Foreign Subsidiary over which Borrower has direct Control.

     

    “Disposal”
-
      the
      intentional or unintentional abandonment, discharge, deposit, injection,
      dumping, spilling, leaking, storing, burning, terminal destruction or placing
      of
      any substance so that it or any of its constituents may enter the
      Environment.

     

    “Dollars”,
      “U.S.
      Dollars”
or
      “$”
-
      lawful money of the United States of America.

     

    “Dollar
      Equivalent”
-
      on
      any particular date, (i) with respect to any amount denominated in Dollars,
      such amount of Dollars, and (ii) with respect to any amount denominated in
      an Alternative Currency, the amount of Dollars which could be purchased by
      the
      Administrative Agent with such amount of such currency in the applicable foreign
      currency markets at the Spot Rate at or about 11:00 a.m. (Eastern time) on
      such
      date.

     

    “Domestic
      Lending Office”
-
      with
      respect to any Lender, the office of such Lender specified as its “Domestic
      Lending Office” opposite its name on Schedule 2.1 hereto or in the
      Assignment and Assumption pursuant to which it became a Lender, as the case
      may
      be, or such other office of such Lender as such Lender may from time to time
      specify to the Borrower and the Administrative Agent.

     

    “Domestic
      Subsidiary”
-
      (i) any Subsidiary having any place of business located in the United
      States of America, other than Moog Controls Corporation, an Ohio corporation
      and
      Moog Controls Corporation, a New

      
        
           

        

        
          -13-

          
            

          

        

        
           

        

      

    York
      corporation, or (ii) any Subsidiary that is a foreign sales corporation
      (including, but not limited to, Moog FSC Ltd.).

     

    “Environment”
-
      any
      water including, but not limited to, surface water and ground water or water
      vapor; any land including land surface or subsurface; stream sediments; air;
      fish; wildlife; plants; and all other natural resources or environmental
      media.

     

    “Environmental
      Claim”
-
      as
      defined in Section 4.12(a) of this Agreement.

     

    “Environmental
      Laws”
-
      all
      foreign, federal, state, provincial and local environmental, land use, zoning,
      health, chemical use, safety and sanitation laws, statutes, ordinances,
      regulations, codes and rules relating to the protection of the Environment
      and/or governing the use, storage, treatment, generation, transportation,
      processing, handling, production or disposal of Hazardous Substances and the
      policies, guidelines, procedures, interpretations, decisions, orders and
      directives of any Governmental Authority with respect thereto.

     

    “Environmental
      Permits”
-
      all
      licenses, permits, approvals, authorizations, consents or registrations required
      by any applicable Environmental Laws and all applicable judicial and
      administrative orders in connection with ownership, lease, purchase, transfer,
      closure, use and/or operation of Borrower’s property and/or as may be required
      for the storage, treatment, generation, transportation, processing, handling,
      production or disposal of Hazardous Substances.

     

    “Environmental
      Questionnaire”
-
      a
      questionnaire and all attachments thereto concerning: (i) activities and
      conditions affecting the Environment at any property of a Person or
      (ii) the enforcement or possible enforcement of any Environmental Law
      against a Person.

     

    “Equity
      Interests”
-
      shares of capital stock in a corporation, partnership interests in a
      partnership, membership interests in a limited liability company, beneficial
      interests in a trust or other equity ownership interests in a Person, and any
      warrants, options or other rights entitling the holder thereof to purchase
      or
      acquire any such equity interest.

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

     

    “ERISA”
-
      the
      Employee Retirement Income Security Act of 1974, as amended by the Multiemployer
      Pension Plan Amendments Act of 1980, and as otherwise amended from time to
      time.

     

    “ERISA
      Affiliate”
-
      each
      Subsidiary and any trade or business (whether or not incorporated) that,
      together with Borrower, is treated as a single employer under
      Section 414(b) or (c) of the Code or Section 4001(b)(1) of ERISA, or,
      solely for purposes of Section 302 of ERISA and Section 412 of the Code, is
      treated as a single employer under Section 414 of the Code.

     

    “ERISA
      Event”
-
      (i)
      any Reportable Event with respect to a Pension Plan (other than an event for
      which the 30-day notice period is waived); (ii) the existence with respect
      to
      any Pension Plan of an “accumulated funding deficiency” (as defined in Section
      412 of the Code or Section 302 of ERISA), whether or not waived; (iii) the
      filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of
      an application for a waiver of the minimum funding standard with respect to
      any
      Pension Plan; (iv) the incurrence by Borrower or any of its ERISA Affiliates
      of
      any liability under Title IV of ERISA with respect to the termination of any
      Pension Plan; (v) the receipt by Borrower or any ERISA Affiliate from the PBGC
      or a plan administrator of any notice relating to an intention to terminate
      any
      Pension Plan or Plans or to appoint a trustee to administer any Pension Plan;
      (vi) the incurrence by Borrower or any of its ERISA Affiliates of any liability
      with respect to the withdrawal or partial withdrawal from any Pension Plan
      or
      Multiemployer Plan; or (vii) the receipt by Borrower or any ERISA Affiliate
      of
      any notice, or the receipt by any Multiemployer Plan from Borrower or any ERISA
      Affiliate of any notice, concerning the imposition of Withdrawal Liability
      or a
      determination that a Multiemployer Plan is, or is expected to be, insolvent
      or
      in reorganization, within the meaning of Title IV of ERISA.

     

    “Euro”
and
      “EUR”-
      the
      single currency of the participating member states of the European
      Union.

     

    “Event
      of
      Default”
-
      as
      defined in Section 8.1 of this Agreement.

     

    “Exchange
      Act”
-
      the
      Securities Exchange Act of 1934, as amended.

     

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

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

     

    “Existing
      Letters of Credit”
-
      any
      Letter of Credit issued by HSBC Bank under the 2003 Agreement and which is
      outstanding on the Closing Date, as further described on
      Schedule 2.4.

     

    “Federal
      Funds Effective Rate”
-
      for
      any day, the rate per annum (based on a year of 365 days and actual days elapsed
      and rounded upward to the nearest 1/100th of 1%) announced by the Federal
      Reserve Bank of New York (or any successor) on such day as being the weighted
      average of the rates on overnight federal funds transactions arranged by federal
      funds brokers on the previous trading day, as computed and announced by such
      Federal Reserve Bank (or any successor) in substantially the same manner as
      such
      Federal Reserve Bank computes and announces the weighted average it refers
      to as
      the “Federal Funds Effective Rate” as of the date of this Agreement;
provided,
      if such
      Federal Reserve Bank (or its successor) does not announce such rate on any
      day,
      the “Federal Funds Effective Rate” for such day shall be the Federal Funds
      Effective Rate for the last day on which such rate was announced.

     

    “Foreign
      Lender”
-
      any
      Lender that is organized under the laws of a jurisdiction other than the United
      States of America or any state thereof or the District of Columbia.

     

    “Foreign
      Subsidiary”
-
      (i) any Subsidiary not having any place of business located in the United
      States of America other than any Subsidiary that is a foreign sales corporation
      (including, but not limited to, Moog FSC Ltd.) or (ii) Moog Controls
      Corporation, an Ohio corporation.

     

    “GAAP”
-
      as of
      the date of any determination, generally accepted accounting principles as
      promulgated by the Financial Accounting Standards Board and/or the American
      Institute of Certified Public Accountants or any successor entity or entities
      thereto, including, without limitation, any Public Company Accounting Oversight
      Board established under the Sarbanes-Oxley Act of 2002, and which are effective
      as of such date of determination, consistently applied and maintained throughout
      the relevant periods and from period to period.

     

    “Governmental
      Authority”
-
      the
      government of the United States of America, any other nation or any political
      subdivision thereof, whether state or local, and any agency, authority,
      instrumentality,

      
        
           

        

        
          -16-

          
            

          

        

        
           

        

      

    regulatory
      body, court, central bank or other entity exercising executive, legislative,
      judicial, taxing, regulatory or administrative powers or functions of or
      pertaining to government.

     

    “Guarantor”
or
      “Guarantors”
-
      individually or collectively, Moog FSC Ltd., a Virgin Islands corporation,
      Curlin Medical Inc., a Delaware corporation, Flo-Tork, Inc., a
      Delaware corporation, Fundamental Technology Solutions, Inc., a Delaware
      corporation, Moog Europe Holdings I LLC, a New York limited liability
      company, Moog Europe Holdings II LLC, a New York limited liability company
      and any other Subsidiary of Borrower which is required to deliver to the
      Administrative Agent a Guaranty hereunder.

     

    “Guaranty”
-
      a
      guaranty agreement in form and content reasonably satisfactory to the
      Administrative Agent and the Lenders evidencing the obligation of a Person
      to
      guarantee payment of any Indebtedness and any other reimbursement, payment
      or
      performance obligations of another Person which arise under this Agreement
      or
      any other Loan Document.

     

    “Hazardous
      Substances”
-
      without limitation, any explosives, radon, radioactive materials, asbestos,
      urea
      formaldehyde foam insulation, polychlorinated biphenyls, petroleum and petroleum
      products, methane, hazardous materials, hazardous wastes, hazardous or toxic
      substances and any other material defined as a hazardous substance in
      Section 101(14) of the Comprehensive Environmental Response, Compensation
      and Liability Act of 1980, 42 U.S.C. Section 9601(14).

     

    “Hedge
      Agreement”
-
      an
      interest rate swap, cap or collar agreement, or any arrangement similar to
      any
      of the foregoing between Borrower and any Lender relating to any Indebtedness
      under this Agreement, each as providing for the transfer or mitigation of
      interest rate risk either generally or under specific
      contingencies.

     

    “HSBC
      Bank”
-
      HSBC
      Bank USA, National Association, and its successors and assigns.

     

    “Indebtedness”
-
      at a
      particular date, without duplication, (i) all indebtedness of a Person for
      borrowed money whether or not evidenced by a note, bond, debenture or other
      debt
      instrument, or for the deferred purchase price of property (excluding trade
      accounts payable in the ordinary course of business), whether short term or
      long
      term, (ii) any indebtedness secured by a lien on a

      
        
           

        

        
          -17-

          
            

          

        

        
           

        

      

    Person’s
      assets whether or not such Person is primarily liable for repayment thereof,
      (iii) the face amount of all letters of credit issued for the account of
      such Person and, without duplication, all drafts drawn thereunder and not repaid
      by such Person, (iv) Capitalized Lease Obligations; (v) all mandatory
      redemption, repurchase or similar obligations with respect to any Equity
      Interests of such Person, and (vi) Contingent Obligations with respect to
      any of the foregoing to the extent (and only to the extent) that (A) any
      such Contingent Obligation relates to other Indebtedness that is not
      Consolidated Indebtedness of the Borrower and any Subsidiary and (B) the
      other Indebtedness to which such Contingent Obligation relates is outstanding
      and then only as to principal or like amounts actually borrowed, due, payable
      or
      drawn, as the case may be.

     

    “Indemnified
      Party”
      -
      as
      defined in Section 9.2 of this Agreement.

     

    “Interest
      Period”
or
      “Interest
      Periods”
-
      individually, and collectively, with respect to a Libor Loan, the one, two,
      three or six month interest periods selected by the Borrower pursuant to the
      terms of this Agreement to be applicable to specific Libor Loans from time
      to
      time or any such other periods of such other durations as the Borrower and
      all
      Lenders may agree shall be applicable to specific Libor Loans from time to
      time;
provided,
      however,
      that
      (i) no Interest Period may be selected that would end after the Revolving Credit
      Maturity Date; (ii) if any Interest Period begins on a day for which there
      is no
      numerically corresponding day in the calendar month at the end of such Interest
      Period, such Interest Period shall end on the last Business Day of such calendar
      month; (iii) if any Interest Period would otherwise expire on a day that is
      not a Business Day, such Interest Period shall expire on the next succeeding
      Business Day, and (iv) if any Interest Period would otherwise expire on a
      day that is not a Business Day but is a day of the month after which no further
      Business Day occurs in such month, such Interest Period shall expire on the
      next
      preceding Business Day.

     

    “Interest
      Coverage Ratio”
-
      as of
      any date of determination, the ratio as of the last day of any fiscal quarter
      of
      Borrower ending on the date of determination, of (i) Consolidated EBITDA
      for the four consecutive fiscal quarters then ended to (ii) Consolidated
      Interest Expense for such period.

     

    “Issuing
      Bank”
or
      “Issuing
      Banks”
-
      individually, each of HSBC Bank and Citizens Bank of Pennsylvania, and,
      collectively, both of such entities, in their capacity as an issuer of Letters
      of Credit under this Agreement, and any replacements or successors of any such
      bank in such capacity as provided in Section 2.4(j) of this
      Agreement.

      
        
           

        

        
          -18-

          
            

          

        

        
           

        

      

    “Investment”
-
      with
      respect to any Person, any loan, advance or other extension of credit (other
      than unsecured normal trade credit extended upon customary terms in the ordinary
      course of such Person’s business) or capital contribution to, any purchase or
      other acquisition of any security of or interest in, or any other investment
      in,
      any other Person.

     

    “Japanese
      Yen”
-
      the
      lawful currency of Japan.

     

    “Law”
or
      “Laws”
-
      any
      law, constitution, statute, regulation, rule, opinion, ruling, ordinance, order,
      injunction, writ, decree, bond or judgment of any Governmental
      Authority.

     

    “LC
      Disbursement” -
      a
      payment made by any Issuing Bank pursuant to a Letter of Credit.

     

    “LC
      Exposure” -
      at any
      time, the sum of (i) the aggregate undrawn amount of all outstanding Letters
      of
      Credit at such time plus (ii) the aggregate amount of all LC Disbursements
      that
      have not yet been reimbursed by or on behalf of the Borrower at such time.
      The
      LC Exposure of any Lender at any time shall be its Applicable Percentage of
      the
      total LC Exposure at such time.

     

    “Lenders”
-
      the
      Persons listed on Schedule 2.1 to this Agreement and any other Person that
      shall have become a party hereto pursuant to an Assignment and Assumption,
      other
      than any such Person that ceases to be a party hereto pursuant to an Assignment
      and Assumption. Unless the context otherwise requires, the term “Lenders”
includes the Swingline Lender.

     

    “Lenders’
      Obligations”
-
      as
      defined in Section 8.2 of this Agreement.

     

    “Letter
      of Credit” -
      any
      letter of credit issued pursuant to this Agreement whether issued as a U.S.
      Letter of Credit denominated in Dollars or in Alternative Currency, including,
      without limitation, the Existing Letters of Credit.

     

    “Letter
      of Credit Commitment”
-
      with
      respect to an Issuing Bank, the amount set forth opposite such Issuing Bank’s
      name on Schedule 2.1 hereto under the caption “Letter of Credit Commitment”
or, if an

      
        
           

        

        
          -19-

          
            

          

        

        
           

        

      

    Issuing
      Bank has entered into one or more Assignments and Assumptions, set forth for
      such Issuing Bank in the register maintained by the Administrative Agent as
      such
      Issuing Bank’s “Letter of Credit Commitment,” as such amount may be reduced at
      or prior to such time pursuant to Section 2.13.

     

    “Letter
      of Credit Facility”
-
      at
      any time, an amount equal to the amount of the Issuing Banks’ Letter of Credit
      Commitment at such time, as such amount may be reduced at or prior to such
      time
      pursuant to Section 2.13 less the aggregate Available Amount under all
      Letters of Credit including Existing Letters of Credit outstanding at such
      time.

     

    “Leverage
      Ratio”
-
      as of
      any date of determination, the ratio of (i) Consolidated Net Debt of
      Borrower as of the last day of the fiscal quarter of Borrower ending on the
      date
      of determination, to (ii) Consolidated EBITDA for the four consecutive
      fiscal quarters then ended.

     

    “Libor
      Interest Determination Date”
-
      a
      Business Day that is two (2) Business Days prior to the commencement of each
      Interest Period during which the Libor Rate will be applicable.

     

    “Libor
      Lending Office”
-
      with
      respect to any Lender, the office of such Lender specified as its “Libor Lending
      Office” opposite its name on Schedule 2.1 hereto or in the Assignment and
      Assumption pursuant to which it became a Lender (or, if no such office is
      specified, its Domestic Lending Office), or such other office of such Lender
      as
      such Lender may from time to time specify to the Borrower and the Administrative
      Agent.

     

    “Libor
      Loan”
-
      any
      Loan on which interest is calculated based on the Libor Rate plus the Applicable
      Margin.

     

    “Libor
      Rate”
-
      for
      any Libor Loan for any Interest Period therefor, either (a) the rate of
      interest per annum determined by the Administrative Agent (rounded upward to
      the
      nearest 1/100 of 1%) appearing on, in the case of Dollars, the Telerate Page
      3750 (or any successor page) and, in the case of an Alternative Currency, the
      appropriate page of the Telerate screen which displays British Bankers
      Association Interest Settlement Rates for deposits in such Alternative Currency
      (or, in each case, (i) such other page or service as may replace such page
      on such system or service for the purpose of displaying such rates and
      (ii) if more than one rate

      
        
           

        

        
          -20-

          
            

          

        

        
           

        

      

    appears
      on such screen, the arithmetic mean for all such rates rounded upward to the
      nearest 1/100 of 1%) as the London interbank offered rate for deposits in the
      Applicable Currency at approximately 11:00 a.m. (London time), on a Libor
      Interest Determination Date, and in an amount approximately equal to the amount
      of the Libor Loan and for a period approximately equal to such interest Period
      or (b) if such rate is for any reason not available, the rate per annum
      equal to the rate at which the Administrative Agent or its designee is offered
      deposits in such currency at or about 11:00 a.m. (London time) on a Libor
      Interest Determination Date, in the interbank market where the eurodollar and
      Alternative Currency and exchange operations in respect of its Libor Loans
      are
      then being conducted for settlement in immediately available funds, for delivery
      on the first day of such Interest Period for the number of days comprised
      therein, and in an amount comparable to the amount of the Libor Loan to be
      outstanding during such Interest Period, and in each case, adjusted for
      applicable reserves, if any.

     

    “Libor
      Rate
      Option”
-
      the
      Rate Option in which interest is based on the Libor Rate plus the Applicable
      Margin for the applicable Loan.

     

    “Lien”
-
      any
      mortgage, deed of trust, pledge, hypothecation, assignment, security interest,
      lien, charge or encumbrance, or preference, priority or other security agreement
      or preferential arrangement in respect of any asset of any kind or nature
      whatsoever (including, without limitation, any conditional sale or other title
      retention agreement or any financing lease having substantially the same
      economic effect as any of the foregoing).

     

    “Loan”
or
      “Loans”
-
      individually and collectively, any Revolving Loan, whether such is an ABR Loan
      or a Libor Loan, any Alternative Currency Loan, and any Swingline Loan under
      the
      Revolving Credit.

     

    “Loan
      Account”
-
      an
      account or accounts maintained with the Administrative Agent for the Borrower
      into which the proceeds of a Revolving Loan denominated in Dollars shall be
      initially deposited pursuant to Sections 2.1(c) and 2.5 of this
      Agreement.

     

    “Loan
      Document”
-
      this
      Agreement and any other loan, guaranty, letter of credit or Collateral document
      executed and delivered by Borrower, any Guarantor, or any Subsidiary or the
      Lenders in connection with this Agreement including, without limitation, the
      Notes, any Guaranty,
      any Letter of Credit or any document in connection therewith, and the
      Security

      
        
           

        

        
          -21-

          
            

          

        

        
           

        

      

    Documents,
      as any of the same may be amended, modified, renewed or replaced from time
      to
      time.

     

    “Material
      Adverse Effect”
-
      an
      effect, individually or in the aggregate, that (i) is materially adverse to
      the business, assets, financial condition or results of operations of Borrower
      and its Subsidiaries, taken as a whole, or (ii) does materially impair the
      ability of the Borrower to perform their obligations under this Agreement,
      or
      any other Loan Documents, or (iii) materially impairs the rights and remedies
      of
      the Administrative Agent, the Swingline Lender, any Issuing Bank or any of
      the
      Lenders under the Loan Documents.

     

    “Material
      Indebtedness”
-
      Indebtedness owing to a Person or Persons in a single transaction or related
      transactions (other than the Loans and Letters of Credit), or obligations in
      respect of one or more Hedge Agreements entered into with a Person, of the
      Borrower and any Subsidiary in an aggregate principal amount exceeding
      $25,000,000. For purposes of determining Material Indebtedness, the principal
      amount of the obligations of any Person in respect of any Hedging Agreement
      at
      any time shall be the maximum aggregate amount (giving effect to any netting
      agreements) that such Person would be required to pay if such Hedge Agreement
      were terminated at such time.

     

    “Maximum
      Limit”
-
      the
      maximum aggregate amount which the Borrower can borrow under the Revolving
      Credit which is $600,000,000.

     

    “Mortgages”
-
      those
      existing mortgages referenced in the Background section of this Agreement,
      granted pursuant to the 1998 Agreement or 2003 Agreement and any mortgage
      required to be granted by Borrower or any Subsidiary to the Administrative
      Agent
      pursuant to Section 5.11 of this Agreement.

     

    “Multiemployer
      Plan”
-
      a
      multiemployer plan as defined in Section 4001(a)(3) of ERISA to which the
      Borrower, any Person under Common Control with the Borrower, or any Person
      Controlled by the Borrower, has an obligation to contribute.

     

    “Multiple
      Employer Plan”
-
      a
      Pension Plan subject to Title IV of ERISA and described in Section 4063 of
      ERISA with respect to which the Borrower or any ERISA Affiliate could have
      liability under Section 4064 or 4069 of ERISA in the event such Pension Plan
      has
      been or were to be terminated.

      
        
           

        

        
          -22-

          
            

          

        

        
           

        

      

    “Net
      Proceeds”
-
      the
      gross amount received less tax reserves established to cover estimated taxes
      on
      Asset Sales that are otherwise permitted under Section 7.8(b), payments
      made on debt secured by Permitted Encumbrances in Asset Sales that are otherwise
      permitted under Section 7.8(b) where payment of such debt is a condition to
      such disposition, commissions, fees (including, without limitation the fees
      and
      expenses of attorneys, accountants, investment bankers, appraisers and
      consultants), other closing costs (including, without limitation, costs of
      title
      insurance, surveys, recording fees and filing fees and transfer taxes),
      underwriters’ discounts and similar expenses.

     

    “Non-Material
      Subsidiary”
-
      any
      Subsidiary that has, as of the date of determination, total assets equal to
      less
      than 5% of Consolidated Total Assets, based on the quarterly financial
      statements of Borrower most recently delivered to the Lenders.

     

    “Note”
or
      “Notes”
-
      individually, any, and collectively, all, of the Revolving Notes, Alternative
      Currency Notes and the Swingline Note and any or all replacements and renewals
      thereof.

     

    “Operating
      Lease”
-
      as
      applied to any Person, any lease of any property, whether real, personal or
      mixed, by that Person as lessee that, in conformity with GAAP, is not accounted
      for as a Capital Lease on the balance sheet of that Person.

     

    “Overdue
      Amounts”
-
      as
      defined in Section 2.6(c) of this Agreement.

     

    “Participants”
-
      as
      defined in Section 11.4(b) of this Agreement.

     

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

     

    “Pension
      Plan”
-
      any
      pension plan as defined in Section 3(2) of ERISA which is a single employer
      plan as defined in Section 4001 of ERISA and subject to Title IV of
      ERISA and which is (i) a plan maintained by Borrower or any ERISA Affiliate
      for employees or former employees of Borrower or of any ERISA Affiliate,
      (ii) a plan to which Borrower or any ERISA Affiliate

      
        
           

        

        
          -23-

          
            

          

        

        
           

        

      

    contributes
      or is required to contribute, (iii) a plan to which Borrower or any ERISA
      Affiliate was required to make contributions within the five (5) year period
      preceding the date of this Agreement, or (iv) any other plan with respect
      to which Borrower or any ERISA Affiliate has incurred or may incur liability,
      including contingent liability, under Title IV of ERISA, to such plan or to
      the PBGC. Each such Pension Plan to which Borrower is or may be obligated to
      contribute as of the date of this Agreement is listed and identified on Schedule
      1 to this Agreement.

     

    “Permitted
      Acquisitions”
-
      as
      set forth in Section 7.8 of this Agreement. 

     

    “Permitted
      Dispositions”
-
      as
      defined in Section 7.8 of this Agreement.

     

    “Permitted
      Distributions”
-
      as
      defined in Section 7.4 of this Agreement.

     

    “Permitted
      Encumbrances”
-
      as
      defined in Section 7.2 of this Agreement.

     

    “Permitted
      Indebtedness”
-
      as
      defined in Section 7.1 of this Agreement.

     

    “Permitted
      Investments”
-
      as
      defined in Section 7.3 of this Agreement.

     

    “Person”
-
      any
      natural person, corporation, limited liability company, partnership, joint
      venture, trust, unincorporated association, Governmental Authority or other
      entity, body, organization or group.

     

    “Pounds
      Sterling”
or
      “£”
-
      the
      lawful currency of the United Kingdom.

     

    “Prime
      Rate”
-
      the
      rate of interest publicly announced by HSBC Bank from time to time as its prime
      rate and as a base rate for calculating interest on certain loans. Each change
      in the Prime

      
        
           

        

        
          -24-

          
            

          

        

        
           

        

      

    Rate
      shall be effective from and including the date such change is publicly announced
      as being effective. The Prime Rate may or may not be the most favorable rate
      charged by HSBC Bank to its customers.

     

    “Rate
      Option”
or
      “Rate
      Options” -
      individually, and collectively, the choice of applicable interest rates and
      Interest Periods offered pursuant to this Agreement to establish the interest
      to
      be charged on certain portions of the unpaid principal borrowed hereunder from
      time to time.

     

    “Release”
-
      has
      the same meaning as given to that term in Section 101(22) of the
      Comprehensive, Environmental Response, Compensation and Liability Act of 1980,
      42 U.S.C. Section 9601, et. seq. and the regulations promulgated
      thereunder.

     

    “Replaced
      Lender”
or
      “Replacement
      Lender”
-
      as
      defined in Section 2.18 of this Agreement.

     

    “Reportable
      Event”
-
      any
      event with regard to a Pension Plan described in Section 4043(c) of ERISA,
      or in regulations issued thereunder.

     

    “Request
      Certificate”
-
      a
      certificate substantially in the form of Exhibit D hereto with all blanks
      appropriately completed, and duly executed by Borrower.

     

    “Required
      Lenders”
      -
      at any
      time, Lenders that together hold Revolving Credit Exposures and Unused
      Commitments representing more than 50% of the sum of the total Revolving Credit
      Exposures and Unused Commitments at such time; provided,
      however,
      if any
      Lender shall be a Defaulting Lender at such time, there shall be excluded from
      the determination of Required Lenders at such time (i) the aggregate
      principal amount of Loans owing to such Lender (in its capacity as a Lender)
      and
      outstanding at such time, and (ii) the aggregate Commitment of such Lender
      at
      such time. For purposes of this definition, the aggregate principal amount
      of
      Swingline Loans owing to the Swingline Lender, the LC Disbursements owing to
      the
      Issuing Banks and the amount available to be drawn under each U.S. Letter of
      Credit and each Alternative Currency Letter of Credit shall be considered to
      be
      owed to the Lenders ratably in accordance with their respective
      Commitments.

    
      
         

      

      
        -25-

        
          

        

      

      
         

      

    

     

    “Responsible
      Officer”
-
      with
      respect to a Person, its chief executive officer, its chief financial officer,
      any member of the office of the chief financial officer, treasurer or assistant
      treasurer.

     

    “Restricted
      Payment” -
      any
      dividend or other distribution (whether in cash, securities or other property)
      with respect to any Equity Interests in Borrower or any Subsidiary, or any
      payment (whether in cash, securities or other property), including any sinking
      fund or similar deposit, on account of the purchase, redemption, defeasance,
      retirement, acquisition, cancellation or termination of any such Equity
      Interests in the Borrower or any option, warrant or other right to acquire
      any
      such Equity Interests in the Borrower.

     

    “Revolving
      Credit”
-
      the
      five-year revolving credit facility (including Revolving Loans, Alternative
      Currency Loans, Swingline Loans and Letters of Credit) made available to the
      Borrower by the Lenders as provided in Article II of this
      Agreement.

     

    “Revolving
      Credit
      Exposure”
-
      with
      respect to any Lender at any time, the sum of the outstanding principal amount
      of such Lender’s Revolving Loans and Alternative Currency Loans, LC Exposure and
      Swingline Exposure at such time.

     

    “Revolving
      Credit
      Maturity Date”
-
      October 25, 2011 which date may be shortened in accordance with
      Section 8.2 of this Agreement.

     

    “Revolving
      Loan”
or
      “Revolving
      Loans”
-
      individually and collectively, each Loan by any Lender to Borrower whether
      initially made as an ABR Loan or a Libor Loan under Section 2.1 of this
      Agreement or arising from Borrower’s request for a Loan to repay a Swingline
      Loan under Section 2.3(c) of this Agreement, or arising from Automatically
      Converted Loans under Section 2.1(d) of this Agreement, or arising from
      Borrower’s request to reimburse an LC Disbursement under Section 2.4(f) of
      this Agreement.

     

    “Revolving
      Note”
or
      “Revolving
      Notes”
-
      the
      promissory note or promissory notes of the Borrower substantially in the form
      of
      Exhibit A hereto with all blanks appropriately completed, and all
      replacements and renewals thereof, evidencing the promise of the Borrower to
      repay Revolving Loans under the Revolving Credit to the applicable
      Lender.

    
      
         

      

      
        -26-

        
          

        

      

      
         

      

    

     

    “SEC”
-
      the
      U.S. Securities and Exchange Commission, any successor thereto and any analogous
      Governmental Authority.

     

    “Securities
      Act”
-
      the
      Securities Act of 1933, as amended.

     

    “Security
      Documents”
-
      any
      security agreement, any UCC financing statement, any mortgage or deed of trust,
      any assignment of leases and rents, any negative pledge agreement and any
      amendment thereof or any other document pursuant to which any Lien is granted
      or
      perfected by Borrower or any Guarantor to the Administrative Agent as security
      for the Indebtedness of the Borrower under this Agreement.

     

    “Spot
      Rate”
-
      the
      spot rate of exchange that appears on the Reuters World Currency Page applicable
      to such currency (or such other page that may replace such page on such service
      for the purpose of displaying the spot rate of exchange) for the purchase of
      such currency with another currency at approximately 10:00 a.m. on the date
      two Business Days prior to the date as of which the foreign exchange computation
      is made; provided that
      if there
      shall at any time no longer exist such a page on such service, the Spot Rate
      shall be determined by reference to another similar rate publishing service
      reasonably selected by the Administrative Agent.

     

    “Subordinated
      Indenture”
-
      the
      Indenture dated as of January 10, 2005 between Borrower and JPMorgan Chase
      Bank, N.A. as trustee (“Trustee”) as supplemented by that First Supplemental
      Indenture dated as of September 12, 2005 between Borrower and the Trustee
      as the same may, in accordance with the terms of this Agreement, from time
      to
      time be amended, supplemented, restated or otherwise modified or replaced,
      pursuant to which Borrower issued 6-1/4% Senior Subordinated Notes due 2015
      in
      an aggregate principal amount of approximately $200,000,000.

     

    “Subsidiary”
-
      any
      limited liability company, partnership, association or other entity the accounts
      of which would be consolidated with those of Borrower in Borrower’s consolidated
      financial statements if such financial statements were prepared in accordance
      with GAAP as of such date, as well as any corporation of which at least 50%
      of
      the voting stock is owned by any entity directly, or indirectly through one
      or
      more Subsidiaries.

    
      
         

      

      
        -27-

        
          

        

      

      
         

      

    

     

    “Swingline
      Exposure”
-
      at
      any time for all Lenders, the aggregate principal amount of all Swingline Loans
      outstanding at such time. The Swingline Exposure of any Lender at any time
      shall
      be its Applicable Percentage of the total Swingline Exposure at such
      time.

     

    “Swingline
      Lender”
-
      HSBC
      Bank, in its capacity as lender of Swingline Loans hereunder, and any successor
      to HSBC Bank, and the replacements or successors to HSBC Bank in such capacity,
      as provided in this Agreement.

     

    “Swingline
      Loan”
-
      a
      Loan made pursuant to Section 2.3 of this Agreement.

     

    “Swingline
      Note”
-
      a
      promissory note of Borrower substantially in the form of Exhibit C hereto
      with all blanks appropriately completed, and all replacements and renewals
      thereof evidencing the promise of the Borrower to repay Swingline Loans to
      the
      Swingline Lender.

     

    “Taxes”
-
      any
      and all present or future taxes, levies, imposts, duties, deductions, charges
      or
      withholdings imposed by any Governmental Authority.

     

    “Total
      Commitment”
-
      the
      aggregate amount of the Commitments of the Lenders, as such Commitments may
      be
      decreased pursuant to the terms of this Agreement. The amount of the Total
      Commitment on the Closing Date is $600,000,000.

     

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

     

    “Unused
      Alternative Currency Sublimit”
-
      as to
      any Lender at any time, an amount in Dollars equal to (i) such Lender’s
      Alternative Currency Sublimit minus (ii) the sum of (x) the aggregate
      Assigned Dollar Value of all Alternative Currency Loans made by such Lender
      (in
      its capacity as a Lender) and outstanding at such time, plus (y) such
      Lender’s Applicable Percentage of the aggregate Available Amount of all
      Alternative Currency Letters of Credit outstanding at such time.

    
      
         

      

      
        -28-

        
          

        

      

      
         

      

    

     

    “Unused
      Commitment”
-
      with
      respect to any Lender at any time, (i) such Lender’s Commitment at such
      time minus (ii) the sum of (x) the aggregate principal amount of all Revolving
      Loans and the Assigned Dollar Value of all Alternative Currency Loans, in each
      instance made by such Lender (in its capacity as a Lender) and outstanding
      at
      such time, plus
      (y) such
      Lender’s Applicable Percentage of (1) the aggregate Available Amount of all
      Letters of Credit, including, without limitation, Existing Letters of Credit,
      outstanding at such time, (2) the aggregate principal amount of all LC
      Disbursements made by the Issuing Banks and outstanding at such time, and
      (3) the aggregate principal amount of all Swingline Loans made by the
      Swingline Lender and outstanding at such time.

     

    “USA
      Patriot Act”
-
      the
      Uniting and Strengthening America by Providing Appropriate Tools Required to
      Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, as the
      same has been, or shall hereafter be, renewed, extended, amended or
      replaced.

     

    “U.S.
      Letter of Credit”
-
      a
      Letter of Credit denominated in Dollars.

     

    “Valuation
      Date”
-
      (a) with respect to any Loan, each of the following: (i) each date of
      a borrowing of a Libor Loan denominated in an Alternative Currency,
      (ii) each date of a continuation of a Libor Loan denominated in an
      Alternative Currency, and (iii) such additional dates as the Administrative
      Agent shall reasonably determine or the Required Lenders shall reasonably
      require; and (b) with respect to any Letter of Credit, each of the
      following: (i) each date of issuance of a Letter of Credit denominated in
      an Alternative Currency, (ii) each date of an amendment of any such Letter
      of Credit having the effect of increasing the amount thereof (solely with
      respect to the increased amount), (iii) each date of any payment by an
      Issuing Bank under any Letter of Credit denominated in an Alternative Currency,
      and (iv) such additional dates as the Administrative Agent or an Issuing
      Bank shall reasonably determine or the Required Lenders shall reasonably
      require.

     

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

     

    1.2 Accounting
      Terms.

     

    (a) Generally.
      All
      accounting terms not specifically or completely defined herein shall be
      construed in conformity with, and all financial data (including financial ratios
      and other financial calculations) required to be submitted pursuant to this
      Agreement shall

    

    
      
        
           

        

        
          -29-

          
            

          

        

        
           

        

      

    

    

    be
      prepared in conformity with, GAAP applied on a consistent basis, as in effect
      from time to time, applied in a manner consistent with that used in preparing
      Borrower’s audited financial statements previously provided to the
      Administrative Agent and the Lenders, except as otherwise specifically
      prescribed herein.

     

    (b) Changes
      in GAAP.
      If at
      any time any change in GAAP would affect the computation of any financial ratio
      or requirement set forth in this Agreement, and either the Borrower or the
      Required Lenders shall so request, the Administrative Agent, the Lenders and
      the
      Borrower shall negotiate in good faith to amend such ratio or requirement to
      preserve the original intent thereof in light of such change in GAAP (subject
      to
      the approval of the Required Lenders); provided that,
      until
      so amended, (i) such ratio or requirement shall continue to be computed in
      accordance with GAAP prior to such change therein and (ii) the Borrower shall
      provide to the Administrative Agent and the Lenders financial statements and
      other documents required under this Agreement or as reasonably requested
      hereunder setting forth a reconciliation between calculations of such ratio
      or
      requirement made before and after giving effect to such change in
      GAAP.

     

    1.3 Exchange
      Rates; Currency Equivalents.
      (a) As
      of each Valuation Date, the Administrative Agent or an Issuing Bank, as
      applicable, shall determine the exchange rates to be used for calculating the
      Dollar Equivalent of amounts denominated in Alternative Currencies by reference
      to the Spot Rate. Such exchange rate becomes effective as of such Valuation
      Date
      and shall be the rate employed in converting any amounts between Applicable
      Currencies until the next Valuation Date to occur. Except for purposes of
      financial statements delivered by the Borrower hereunder or calculating
      financial covenants hereunder or except as otherwise provided herein, the
      applicable amount of any currency (other than Dollars) for purposes of the
      Loan
      Documents shall be such Dollar Equivalent amount as so determined by the
      Administrative Agent.

     

    (b) Wherever
      in this Agreement in connection with an advance, conversion, continuation or
      prepayment of a Libor Loan or Letter of Credit, an amount, such as a required
      minimum or multiple amount, is expressed in Dollars, but such amount is
      denominated in an Alternative Currency, such amount shall be the relevant
      equivalent amount thereof in the Applicable Currency of such Dollar amount
      (rounded to the nearest unit of such Alternative Currency, with 0.5 of a unit
      being rounded upward), as determined by the Administrative Agent in accordance
      with Section 1.3(a) above.

     

    1.4 European
      Economic and Monetary Union Provisions.
      The
      following shall be effective at and from the commencement of the third stage
      of
      the European Monetary Union (“EMU”) by the United Kingdom:

    
      
         

      

      
        -30-

        
          

        

      

      
         

      

    

     

    (a) Redenomination
      and Alternative Currencies.
      Each
      obligation under this Agreement which has been denominated in Pounds Sterling
      shall be redenominated into the Euro in accordance with EMU legislation,
provided,
      that if
      and to the extent that any EMU legislation provides that following the
      commencement of the third stage of EMU by the United Kingdom an account
      denominated either in the Euro or in Pounds Sterling and payable within the
      United Kingdom by crediting an account of the creditor can be paid by the debtor
      either in Euro or in Pounds Sterling, each party to this Agreement shall be
      entitled to pay or repay any such amount either in the Euro or in Pounds
      Sterling. Any Alternative Currency Loan that would otherwise be denominated
      in
      Pounds Sterling shall be made in the Euro and except as provided in the
      foregoing sentence, any amount payable by the Administrative Agent to the
      Lenders under this Agreement shall be paid in Euro.

     

    (b) Payments
      by the Administrative Agent Generally.
      With
      respect to the payment of any amount denominated in Euro or in Pounds Sterling,
      neither the Administrative Agent nor any Lender shall be liable to the Borrower
      or any Lender in any way whatsoever for any delay, or the consequences of any
      delay, in the crediting to any account of any amount required by this Agreement
      to be paid if such party shall have taken all relevant steps to achieve, on
      the
      date required by this Agreement, the payment of such amount in immediately
      available, freely transferable, cleared funds (in Euro or, as the case may
      be,
      in Pounds Sterling) to the account with the bank which shall have specified
      for
      such purpose. As used herein, “all relevant steps” means all such steps as may
      be prescribed from time to time by the regulations or operating procedures
      of
      such clearing or settlement system as the Administrative Agent may from time
      to
      time determine for the purpose of clearing or settling payments of the
      Euro.

     

    (c) Basis
      of Accrual.
      If the
      basis of accrual of interest or fees expressed in this Agreement with respect
      to
      Pounds Sterling shall be inconsistent with any convention or practice in the
      London Interbank Market for the basis of accrual of interest or fees in respect
      of the Euro, such convention or practice shall replace such expressed basis
      effective as of and from the commencement of the third stage of EMU by the
      United Kingdom; provided,
      that if
      any Alternative Currency Loan is outstanding immediately prior to such date,
      such replacement shall take effect, with respect to such Borrowing, at the
      end
      of the then current Interest Period.

     

    (d) Rounding
      and Other Consequential Changes.
      Without
      prejudice and in addition to any method of conversion or rounding prescribed
      by
      any EMU legislation and without prejudice to the respective liabilities for
      indebtedness of the Borrower to the Lenders and the Lenders to the Borrower
      under or pursuant to this Agreement:

     

    (i) each
      reference in this Agreement to a minimum amount (or an integral multiple
      thereof) in Pounds Sterling shall be replaced by a reference to such

      
        
           

        

        
          -31-

          
            

          

        

        
           

        

      

    reasonably
      comparable and convenient amount (or an integral multiple thereof) in the Euro
      as the Administrative Agent may from time to time specify; and

     

    (ii) except
      as
      expressly provided in this Section 1.4, each provision of this Agreement shall
      be subject to such reasonable changes of construction as the Administrative
      Agent may from time to time specify to be necessary or appropriate to reflect
      the introduction of or changeover to the Euro in the United
      Kingdom.

     

    1.5 Unavailability
      of Alternative Currency Loans.
      Notwithstanding any other provision herein, if any change in law shall make
      it
      unlawful for any Lender to make or maintain any Alternative Currency Loan or
      to
      give effect to its obligations as contemplated hereby with respect to any such
      Loan or in the event that there shall occur any material adverse change in
      national or international financial, political or economic conditions or
      currency exchange rates or exchange controls which would in the opinion of
      such
      Lender make it impracticable for Loans to be denominated in either the Euro,
      Pounds Sterling, or Japanese Yen, then, by written notice to the Borrower and
      to
      the Administrative Agent, such Lender may: (i) declare that such Loans will
      not thereafter be made, whereupon any request for such an Alternative Currency
      Loan shall be deemed a request for a Loan in Dollars unless such declaration
      shall be subsequently withdrawn (the Lender agreeing to withdraw such
      declaration promptly upon determining that the applicable event or condition
      no
      longer exists); and (ii) require that all outstanding Alternative Currency
      Loans so affected be repaid.

     

    1.6 Times
      of Day.
      Unless
      otherwise specified, all references herein to times of day shall be references
      to Eastern time (daylight or standard, as applicable).

     

    1.7 Letters
      of Credit Amounts.
      Unless
      otherwise specified herein, the amount of a Letter of Credit at any time shall
      be deemed to be the stated amount of such Letter of Credit in effect at such
      time; provided,
      however,
      that
      with respect to any Letter of Credit that, by its terms or the terms of any
      letter of credit document related thereto, provides for one or more automatic
      increases in the stated amount thereof, the amount of such Letter of Credit
      shall be deemed to be the maximum stated amount of such Letter of Credit after
      giving effect to all such increases, whether or not such maximum stated amount
      is in effect at such time.

     

    ARTICLE
      II. THE
      CREDIT

     

    2.1 The
      Revolving Credit.

      
        
           

        

        
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    (a) Revolving
      Loans.
      Each
      Lender agrees, severally and not jointly, subject to the terms and conditions
      and relying upon the representations and warranties set forth in this Agreement
      and within the limits hereof, to make one or more Revolving Loans to the
      Borrower, and Borrower may make a request for a Revolving Loan or Revolving
      Loans from the Lenders, at any one time and from time to time, during the
      Availability Period. The Borrower shall not at any time permit, and no Lender
      shall have any obligation to permit, the aggregate outstanding principal amounts
      of all Revolving Loans, Alternative Currency Loans, Swingline Loans and the
      face
      amount of outstanding Letters of Credit to exceed the Maximum Limit or any
      such
      Loan to exceed such Lender’s Unused Commitment, or the Dollar Equivalent of
      $75,000,000 outstanding at any one time for all Alternative Currency Loans.
      The
      Revolving Loans may be repaid and reborrowed in accordance with the provisions
      hereof.

     

    (b) The
      Alternative Currency Loans.
      Each
      Lender severally agrees, on the terms and conditions hereinafter set forth,
      to
      make Loans denominated in an Alternative Currency (“Alternative Currency Loans”)
      to the Borrower from time to time on any Business Day during the Availability
      Period in an amount for each such Loan not to exceed the Dollar Equivalent
      of
      such Lender’s Unused Alternative Currency Sublimit at such time; provided,
      however,
      that
      the aggregate amount of all Alternative Currency Loans at any time outstanding
      shall not at any time exceed the Dollar Equivalent of $75,000,000 (the
“Alternative Currency Facility”), and, provided,
      further,
      that
      the aggregate amount of all outstanding Alternative Currency Loans shall in
      no
      event exceed the aggregate of the Unused Commitments of the Lenders at such
      time. Each Alternative Currency Loan shall consist of Alternative Currency
      advances made simultaneously by the Lenders ratably according to their
      Alternative Currency Sublimits. Within the limits of each Lender’s Alternative
      Currency Sublimit in effect from time to time, the Borrower may borrow, repay
      and reborrow.

     

    (c) Method
      for Dollar Loans.
      When
      Borrower wants the Lenders to make a Revolving Loan denominated in Dollars
      available, the Borrower shall notify the Administrative Agent not later than
      1:00 p.m. on the Business Day on which the Revolving Loan is to be funded
      in the case of an ABR Loan, and in the case of a Libor Loan not later than
      two (2) Business Days prior to the proposed commencement date of the
      applicable Interest Period. In such notice, which may be by telephone, confirmed
      immediately in writing, or telex or telecopier, by means of a Request
      Certificate duly completed and executed, the Borrower shall specify (i) the
      aggregate amount of the Revolving Loan to be made on a designated date which
      shall be in a minimum amount of $2,000,000 and shall be in whole multiples
      of
      $1,000,000 for amounts in excess of such minimum amount; (ii) whether the
      Revolving Loan shall be an ABR Loan or a Libor Loan, and if a Libor Loan the
      applicable Interest Period, provided,
      however,
      such
      Interest Period may in no event overlap more than seventeen (17) other
      Interest Periods; and (iii) the proposed date on which the Revolving Loan
      is to be funded which shall be a Business Day. Each Lender shall make available
      to the Administrative Agent in accordance with Section 2.5 hereof, in
      immediately available funds, such Lender’s Applicable Percentage of such Loan in
      accordance with the respective Commitment of such Lender. As early as
      practically possible on the date on

    
      
         

      

      
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which
      a
      Revolving Loan is made and upon fulfillment of the conditions set forth in
      Article III of this Agreement, the Administrative Agent will make the
      proceeds of the Revolving Loan available to the Borrower by a deposit to the
      applicable Loan Account.

     

    (d) Method
      for Alternative Currency Loans.

     

    (i) When
      Borrower wants the Lenders to make a Revolving Loan denominated in an
      Alternative Currency available, the Borrower shall notify the Administrative
      Agent and the Lenders not later than 11:00 a.m. on the third Business Day
      prior to the date of the proposed borrowing. Each such notice (a “Notice of
      Alternative Currency Borrowing”) may be by telephone, confirmed immediately in
      writing, or telex or telecopier, specifying therein the (i) requested date
      of
      such Alternative Currency Loan, (ii) Applicable Currency, (iii) amount of
      such Alternative Currency Loan (which requested Alternative Currency Loan (other
      than, in the case of a continuation of a Libor Loan, a change in the Dollar
      Equivalent thereof solely as a result of currency fluctuations)) shall be in
      an
      aggregate amount of the Applicable Alternative Currency which would purchase
      approximately Three Million Dollars ($3,000,000) or an integral multiple of
      One
      Million Dollars ($1,000,000) in excess thereof based on the Spot Rate with
      respect to such currency on the date of the applicable Notice of Alternative
      Currency Borrowing or, if less, the then Dollar Equivalent amount of the
      aggregate Unused Alternative Currency Sublimits, and (iv) initial Interest
      Period for such Alternative Currency Loan (it being understood by the Borrower
      and Lenders that all Alternative Currency Loans shall be Libor Loans). Each
      Lender shall make available to the Administrative Agent, in accordance with
      Section 2.5 hereof, in same day funds in such Alternative Currency, such
      Lender’s Applicable Percentage of such Alternative Currency Loan in accordance
      with the respective Alternative Currency Sublimits of such Lender. After the
      Administrative Agent’s receipt of funds from the Lenders and upon fulfillment of
      the applicable conditions set forth in Article III, the Administrative Agent
      will make such funds available to the Borrower by wire transfer to such account
      as the Borrower shall have previously designated to the Administrative Agent
      in
      writing, which account must be in the name of Borrower or a Subsidiary and
      in
      London or the financial center of the country of the Applicable
      Currency.

    

    The
      Administrative Agent and the Lenders shall not incur any liability to Borrower
      in acting upon any notice referred to in Sections 2.1(c) or (d) or upon any
      telephonic notice which the Administrative Agent believes in good faith to
      have
      been given by the Borrower by a duly authorized officer or other Person
      authorized to borrow on behalf of Borrower or for otherwise acting in good
      faith
      hereunder.

    

    (ii) Upon
      the
      occurrence and during the continuance of any Default or Event of Default, the
      Administrative Agent may, and, in the case of the occurrence and continuance
      of
      a Default or Event or Default, shall at the direction of the Required Lenders,
      terminate the Alternative Currency Facility by giving notice of such termination
      to the Borrower, and each of the Lenders. Thereupon, (A) any and all then
      outstanding Alternative Currency Loans shall automatically be converted into
      Revolving Loans denominated in Dollars in an amount equal to the Dollar
      Equivalent thereof (the “Automatically Converted Loans”), (B) no

      
        
           

        

        
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    further
      Alternative Currency Loans shall be permitted to be made and (C) the
      Alternative Currency Sublimits of the Lenders shall be automatically terminated.
      In addition, at such time the other Lenders shall purchase from the Lenders,
      and
      the Lenders shall sell and assign to the Lenders, Automatically Converted Loans
      in an amount so that each and every Lender shall have a share of the total
      Automatically Converted Loans equal to its Applicable Percentage of the Total
      Commitment. The Administrative Agent shall specify the amounts required to
      effect such purchases and sales among the Lenders. The Borrower hereby agrees
      to
      each such sale and assignment. Each Lender agrees to purchase its Applicable
      Percentage of Automatically Converted Loans on (i) the Business Day on
      which demand therefor is made; provided that
      notice
      of such demand is given not later than 11:00 a.m. on such Business Day, or
      (ii) the first Business Day next succeeding such demand if notice of such
      demand is given after such time. Upon any such assignment by a Lender to the
      other Lenders of a portion of the Automatically Converted Loans, such Lender
      represents and warrants to such other Lenders that such Lender is the legal
      and
      beneficial owner of the interest being assigned by it, but makes no other
      representation or warranty and assumes no responsibility with respect to any
      of
      the Automatically Converted Loans, any of the Loan Documents, Borrower or any
      Guarantor (including, without limitation, as to the financial condition of
      Borrower or any Guarantor). The occurrence of any event which results in the
      existence of Automatically Converted Loans pursuant to the foregoing shall
      be
      deemed to constitute, for all purposes of this Agreement including
      Section 2.7(a)(ii), an optional prepayment of all of the Alternative
      Currency Loans so automatically converted into Automatically Converted Loans
      before the last day of the Interest Period relating thereto.

    

    (e) Existing
      Indebtedness Assigned.
      As of
      the Closing Date, there are $155,864,556.50 revolving loans outstanding,
      Existing Letters of Credit with a face amount of $11,338,730.50 outstanding
      and
      $22,500,000 of term loans outstanding under the 2003 Agreement (as defined
      in
      part A of the Background Section of this Agreement). Pursuant to an Omnibus
      Assignment and Assumption Agreement dated as of the Closing Date, the lenders
      under the 2003 Agreement have assigned to the Administrative Agent all of the
      indebtedness under the 2003 Agreement effective as of the Closing Date. As
      of
      the Closing Date, such indebtedness under the 2003 Agreement is amended and
      restated as Indebtedness hereunder, and the Administrative Agent hereby assigns
      a portion of the Commitment to the Lenders such that, after giving effect to
      such assignment, the Commitment of each Lender shall be as set forth on
      Schedule 2.1. The terms and provisions of Exhibit F are hereby
      incorporated by reference so that the foregoing assignment shall be subject
      to
      the terms and conditions of such Exhibit F.

     

    2.2 The
      Notes.
      (a) The
      Revolving Loans shall be evidenced by the Revolving Notes, with all blanks
      appropriately completed, payable as provided therein to the Lenders. The
      Revolving Note shall be inscribed by the holder thereof on the schedule attached
      thereto and any continuation thereof with the date of the making of each
      Revolving Loan, the amount of each Revolving Loan, the applicable Rate Options
      and Interest Periods, all payments of principal, and the aggregate outstanding
      principal balance thereof.

      
        
           

        

        
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    (b) The
      Alternative Currency Loans shall be evidenced by the Alternative Currency Notes,
      with all blanks appropriately completed, payable as provided therein to the
      Lenders. The Alternative Currency Notes shall be inscribed by the holder thereof
      on the schedule attached thereto and any continuation thereof with the date
      of
      the making of each Alternative Currency Loan, the amount thereof and the
      applicable Interest Periods, all payments of principal, and the aggregate
      outstanding principal balance thereof.

     

    (c) The
      Swingline Loans shall be evidenced by the Swingline Note, with all blanks
      appropriately completed, payable as provided therein to the Swingline Lender.
      The Swingline Note shall be inscribed by the holder thereof on the schedule
      attached thereto and any continuation thereof with the date of the making of
      each Swingline Loan, the amount thereof and all payments of principal, and
      the
      aggregate principal balance thereof.

     

    Any
      such
      inscription on the schedules to any Revolving Note, Alternative Currency Note
      or
      Swingline Note made by the holder thereof shall constitute prima facie evidence
      of the accuracy of the information so recorded; provided,
      however,
      the
      failure of any Lender or other holder to make any such inscription shall not
      affect the obligations of the Borrower under any Revolving Note, Alternative
      Currency Note or Swingline Note or this Agreement.

     

    2.3 Swingline
      Loans.
      (a)
      Subject to the terms and conditions set forth herein, the Swingline Lender
      agrees to make Loans (“Swingline Loans”) to Borrower solely for the Swingline
      Lender’s own account, from time to time during the Availability Period, up to an
      aggregate principal amount at any one time outstanding that will not result
      in
      (i) the aggregate principal amount of outstanding Swingline Loans exceeding
      $10,000,000 or (ii) the sum of the aggregate Unused Commitments of the
      Lenders at such time being exceeded; provided that
      the
      Swingline Lender shall not be required to make a Swingline Loan to refinance
      an
      outstanding Swingline Loan. The Swingline Lender shall not make any Swingline
      Loan in the period commencing one Business Day after the Swingline Lender shall
      have received written notice in accordance with Section 11.6 of this
      Agreement from Administrative Agent or any Lender that one or more of the
      conditions contained in Article III are not then satisfied or a Default or
      an Event of Default exists and ending upon the satisfaction or waiver of such
      condition(s) or cure or waiver of such Default or Event of Default. Swingline
      Loans shall bear interest at the Prime Rate from time to time in effect. Each
      outstanding Swingline Loan shall be payable on the Business Day following demand
      therefor or automatically without demand on the Revolving Credit Maturity Date,
      together with interest accrued thereon, and shall otherwise be subject to all
      other terms and conditions applicable to all Revolving Loans, except that all
      interest thereon shall be payable to the Swingline Lender solely for its own
      account other than in the case of the purchase of a participation therein in
      accordance with Section 2.3(c) of this Agreement. Within the foregoing limits
      and subject to the terms and conditions set forth herein, Borrower may borrow,
      repay and reborrow Swingline Loans.

     

    (b) To
      request a Swingline Loan, Borrower shall notify the Administrative Agent of
      such
      request by telephone (confirmed by telecopy), not later than

      
        
           

        

        
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    1:00 p.m.
      on the day of a proposed Swingline Loan. Each such notice shall be irrevocable
      and shall specify the requested date (which shall be a Business Day) and amount
      of the requested Swingline Loan. The Administrative Agent will promptly advise
      the Swingline Lender of any such notice received from Borrower. The Swingline
      Lender shall make each Swingline Loan available to Borrower by means of a credit
      to the general deposit account of Borrower with the Swingline Lender (or, in
      the
      case of a Swingline Loan made to finance the reimbursement of an LC Disbursement
      as provided in Section 2.4(f) of this Agreement, by remittance to such Issuing
      Bank) by 3:00 p.m. on the requested date of such Swingline
      Loan.

     

    (c) At
      any
      time after making a Swingline Loan, the Swingline Lender may request Borrower
      to, and upon request by the Swingline Lender, Borrower shall, promptly request
      a
      Revolving Loan from all Lenders and apply the proceeds of such Revolving Loan
      to
      the repayment of any Swingline Loan owing by Borrower not later than the
      Business Day following the Swingline Lender’s request. Notwithstanding the
      foregoing, and upon the earlier to occur of (i) three (3) Business Days after
      demand for payment is made by the Swingline Lender for a Swingline Loan, and
      (ii) the Revolving Credit Maturity Date, if such Swingline Loan has not been
      paid by Borrower, such Swingline Loan shall bear interest as an ABR Loan and
      each Lender (other than the Swingline Lender) shall irrevocably and
      unconditionally purchase from the Swingline Lender, without recourse or
      warranty, an undivided interest and participation in such Swingline Loan in
      an
      amount equal to such Lender’s Applicable Percentage of such Swingline Loan and
      promptly pay such amount to the Administrative Agent for the account of the
      Swingline Lender by wire transfer of immediately available funds in the same
      manner as provided in Section 2.5 of this Agreement with respect to Loans made
      by such Lender, and the Administrative Agent shall promptly pay to the Swingline
      Lender the amounts so received by it from the Lenders. Each Lender acknowledges
      and agrees that its obligation to acquire participations in Swingline Loans
      pursuant to this paragraph is absolute and unconditional and shall not be
      affected by any circumstance whatsoever, shall be made without any offset,
      abatement, withholding or reduction whatsoever and such payment shall be made
      by
      the other Lenders whether or not an Event of Default or a Default is then
      continuing or any other condition precedent set forth in Article III is then
      met
      and whether or not Borrower has then requested a Revolving Loan in such amount.
      The Administrative Agent shall notify Borrower of any participations in any
      Swingline Loan acquired pursuant to this paragraph, and thereafter payments
      in
      respect of such Swingline Loan shall be made to the Administrative Agent and
      not
      to the Swingline Lender. If any Lender fails to make available to the
      Administrative Agent for the account of the Swingline Lender, any amounts due
      to
      the Swingline Lender from such Lender pursuant to this Section, the Swingline
      Lender shall be entitled to recover such amount, together with interest thereon
      at the Federal Funds Effective Rate for the first three (3) Business Days after
      Defaulting Lender receives such notice and thereafter at the rate for ABR Loans,
      in either case payable (i) on demand, (ii) by setoff against any payments made
      to the Swingline Lender for the account of Defaulting Lender, or (iii) by
      payment to the Swingline Lender by the Administrative Agent of amounts otherwise
      payable to Defaulting Lender under this Agreement. The failure of any Lender
      to
      make available to the Administrative Agent for the account of the Swingline
      Lender its Applicable Percentage of any unpaid Swingline Loan shall not relieve
      any other Lender of its obligation hereunder to make available to the
      Administrative Agent for the

      
        
           

        

        
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    account
      of the Swingline Lender, its Applicable Percentage of any unpaid Swingline
      Loan
      on the date such payment is to be made, but no Lender shall be responsible
      for
      the failure of any other Lender to make available to the Administrative Agent
      for the account of the Swingline Lender its Applicable Percentage of any unpaid
      Swingline Loan.

     

    2.4 Letters
      of Credit.

     

    (a) General.
      Each
      Issuing Bank agrees, on the terms and conditions hereinafter set forth, to
      issue
      Letters of Credit for the account of the Borrower from time to time on any
      Business Day during the period from the Closing Date until two (2) Business
      Days
      prior to the Revolving Credit Maturity Date (A) in an aggregate Available Amount
      for all Letters of Credit, including, without limitation, Existing Letters
      of
      Credit, not to exceed at any time such Issuing Bank’s Letter of Credit
      Commitment at such time, (B) with respect to Alternative Currency Letters of
      Credit, in an Available Amount for each such Alternative Currency Letter of
      Credit not to exceed an amount equal to the Unused Alternative Currency
      Sublimits of the Lenders at such time, (C) in an Available Amount for each
      such Letter of Credit not to exceed an amount equal to the Unused Commitments
      of
      the Lenders at such time. Within the limits of the Letter of Credit Facility,
      and subject to the limits referred to herein, the Borrower may request the
      issuance of Letters of Credit under this Section, repay any LC Disbursements
      resulting from drawings under Letters of Credit pursuant to Section 2.4(f)
      and request the issuance of additional Letters of Credit under
      Section 2.4(c). The Existing Letters of Credit shall be deemed to be
      Letters of Credit under this Agreement issued on the Closing Date. In the event
      of any inconsistency between the terms and conditions of this Agreement and
      the
      terms and conditions of any form of letter of credit application or other
      agreement submitted by Borrower to, or entered into by Borrower with, an Issuing
      Bank relating to any Letter of Credit, the terms and conditions of this
      Agreement shall control.

     

    (b) Letter
      of Credit Fees.
      An
      Issuing Bank shall have the right to receive, solely for its own account, and
      Borrower shall pay with respect to any Letter of Credit such Issuing Bank’s
      reasonable and customary administrative, issuance, amendment, drawing and
      negotiation charges in connection with letters of credit. For each day during
      (i) the period beginning on the date of this Agreement and ending
      December 31, 2006, (ii) each full calendar quarter thereafter during
      the term of this Agreement and (iii) the period beginning on the first day
      of the calendar quarter containing the Revolving Credit Maturity Date and ending
      on the day before the Revolving Credit Maturity Date, the Borrower shall pay,
      on
      demand, following each such calendar quarter or other time period, to the
      Administrative Agent for the account of each Lender participating in such
      Letters of Credit a non-refundable letter of credit fee equal to such Lender’s
      Applicable Percentage, on such day, of the product obtained by multiplying
      (A) that portion of LC Exposure representing the aggregate

    
      
         

      

      
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    undrawn
      face amount of Letters of Credit on such day first by (B) the Applicable
      Margin then in effect for Libor Loans for such day minus 1/4% and then by
      (C) 1/360.

     

    (c) Notice
      of Issuance, Amendment, Renewal, Extension; Certain Conditions;
      Reports.

     

    (i) To
      request the issuance of a Letter of Credit (or the amendment, renewal or
      extension of an outstanding Letter of Credit), the Borrower shall hand deliver
      or telecopy (or transmit by electronic communication, if arrangements for doing
      so have been approved by the particular Issuing Bank) to the appropriate Issuing
      Bank and the Administrative Agent (at least three (3) Business Days in advance
      of the requested date of issuance, amendment, renewal or extension for a Letter
      of Credit) a notice requesting the issuance of a Letter of Credit, or
      identifying the Letter of Credit to be amended, renewed or extended, and
      specifying the date of issuance, amendment, renewal or extension (which shall
      be
      a Business Day), the date on which such Letter of Credit is to expire (which
      shall comply with paragraph (d) of this Section), the Available Amount of such
      Letter of Credit, the Applicable Currency, the name and address of the
      beneficiary thereof, the purpose for which such Letter of Credit is to be
      issued, and such other information as shall be necessary to prepare, amend,
      renew or extend such Letter of Credit. Such notice, to be effective, must be
      received by an Issuing Bank not later than 2:00 p.m. or the time agreed
      upon by such Issuing Bank and the Borrower on the last Business Day on which
      such notice can be given under this Section 2.4(c). If requested by an Issuing
      Bank, the Borrower also shall submit a letter of credit application on such
      Issuing Bank’s standard form in connection with any request for a Letter of
      Credit.

     

    (ii) A
      Letter
      of Credit shall be issued, amended, renewed or extended only if, (x) after
      giving effect to such issuance, amendment, renewal or extension (i) the LC
      Exposure shall not exceed $75,000,000, (ii) the sum of the total Revolving
      Credit Exposures shall not exceed the Total Commitment, and (iii) in the
      case of Alternative Currency Letters of Credit, the Unused Alternative Currency
      Sublimits shall not be exceeded, (y) as of the date of such issuance amendment,
      renewal or extension, no order, judgment or decree of any court, arbitrator
      or
      Governmental Authority shall purport by its terms to enjoin or restrain any
      Issuing Bank from issuing the Letter of Credit and no law, rule or regulation
      applicable to such Issuing Bank and no request or directive (whether or not
      having the force of law) from any Governmental Authority with jurisdiction
      over
      such Issuing Bank shall prohibit or request that such Issuing Bank refrain
      from
      the issuance of letters of credit generally or the issuance of that Letter
      of
      Credit. Unless an Issuing Bank has been notified by the Administrative Agent
      or
      the Required Lenders in writing that a Default or an Event of Default has
      occurred and is continuing, in which case an Issuing Bank shall have no
      obligation to issue, amend, renew or extend any Letter of Credit until such
      notice is withdrawn by the Administrative Agent or the Required Lenders or
      such
      Default or Event of Default has been effectively waived in accordance with
      the
      provisions of this Agreement, an Issuing Bank shall, upon
      fulfillment of the applicable conditions set forth in Article III, make
      such Letter of Credit available to the Borrower as agreed between such Issuing
      Bank and the Borrower in connection with such issuance, provided that any such
      Alternative Currency Letter of Credit shall in any event be made available
      to
      the

      
        
           

        

        
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    Borrower,
      or as the Borrower may direct, in London or the financial center of the country
      of the Applicable Currency.

     

    (iii) Each
      Issuing Bank shall furnish (i) to the Administrative Agent on the first
      Business Day of each week a written report summarizing issuance and expiration
      dates of Letters of Credit issued during the previous week and drawings during
      such week under all Letters of Credit, (ii) to the Administrative Agent,
      the Borrower, and each Lender on the first Business Day of each month a written
      report summarizing issuance and expiration dates of Letters of Credit issued
      during the preceding month and drawings during such month under all Letters
      of
      Credit, and (iii) to the Administrative Agent, the Borrower, and each
      Lender on the first Business Day of each calendar quarter a written report
      setting forth the average daily aggregate Available Amount during the preceding
      calendar quarter of all Letters of Credit.

     

    (iv) Notwithstanding
      any other provisions of this Agreement if, after the Closing Date any change
      in
      law shall make it unlawful for an Issuing Bank to issue Letters of Credit
      denominated in an Alternative Currency, then by prompt written notice thereof
      to
      the Borrower and to the Administrative Agent (which notice shall be withdrawn
      whenever such circumstances no longer exist), such Issuing Bank may declare
      that
      Letters of Credit will not thereafter be issued by it in the affected
      Alternative Currency or Alternative Currencies, whereupon the affected
      Alternative Currency or Alternative Currencies shall be deemed (for the duration
      of such declaration) not to constitute an Alternative Currency for purposes
      of
      the issuance of Letters of Credit by such Issuing Bank.

     

    (d) Expiration
      Date.
      No
      Letter
      of Credit shall have an expiration date (including all rights of the Borrower
      or
      the beneficiary to require renewal) later than one (1) Business Day prior to
      the
      Revolving Credit Maturity Date. The foregoing notwithstanding, any standby
      Letter of Credit may, by its terms, be renewable annually upon notice (a “Notice
      of Renewal”) given to an Issuing Bank and the Administrative Agent on or prior
      to any date for notice of renewal set forth in such Letter of Credit (but in
      any
      event at least three (3) Business Days prior to the date of the proposed renewal
      of such standby Letter of Credit) and upon fulfillment of the applicable
      conditions set forth in Article III unless such Issuing Bank shall have
      notified the Borrower (with a copy to the Administrative Agent) on or prior
      to
      the date for notice of termination set forth in such Letter of Credit (but
      in
      any event at least thirty (30) Business Days prior to the date of automatic
      renewal) of its election not to renew such standby Letter of Credit (a “Notice
      of Termination”); provided that
      the
      terms of each standby Letter of Credit that is automatically renewable annually
      shall not permit the expiration date (after giving effect to any renewal) of
      such standby Letter of Credit in any event to be extended to a date later than
      one (1) Business Day before the Revolving Credit Maturity Date. If either a
      Notice of Renewal is not given by the Borrower or a Notice of Termination is
      given by an Issuing Bank pursuant to the immediately preceding sentence, such
      standby Letter of Credit shall expire on the date on which it otherwise would
      have been automatically renewed; provided,
      however,
      that
      even in the absence of receipt of a Notice of Renewal, an Issuing Bank may,
      in
      its discretion unless instructed to the contrary by the

    
      
         

      

      
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    Administrative
      Agent or the Borrower, deem that a Notice of Renewal had been timely delivered
      and, in such case, a Notice of Renewal shall be deemed to have been so delivered
      for all purposes under this Agreement.

     

    (e) Participations.
      (i)
      Immediately upon issuance by an Issuing Bank of any Letter of Credit in
      accordance with the procedures set forth in Section 2.4(c) of this
      Agreement, each Lender shall be deemed to have irrevocably and unconditionally
      purchased and received from such Issuing Bank, without recourse or warranty,
      an
      undivided interest and participation equal to its Applicable Percentage of
      such
      Letter of Credit (including, without limitation, all obligations of the Borrower
      with respect thereto) and any security therefor or guaranty pertaining
      thereto.

     

    (ii) In
      the
      event that an Issuing Bank makes any LC Disbursement and the Borrower shall
      not
      have repaid such amount to such Issuing Bank pursuant to Section 2.4(f) of
      this Agreement, (a) if such payment relates to an Alternative Currency
      Letter of Credit, automatically and with no further action required, the
      obligation to reimburse the applicable payment shall be permanently converted
      into an obligation to reimburse the Dollar Equivalent of such LC Disbursement,
      and (b) such Issuing Bank shall promptly notify the Administrative Agent
      and each Lender of such failure, and each Lender shall promptly and
      unconditionally pay to the Administrative Agent for the account of such Issuing
      Bank the amount of such Lender’s Applicable Percentage of the unreimbursed
      amount of any LC Disbursement in the same manner as provided in Section 2.5
      of this Agreement with respect to Revolving Loans made by such Lender and the
      Administrative Agent shall promptly pay to such Issuing Bank the amounts so
      received by it from the Lenders.

    

    (iii) If
      any
      Lender fails to make available to an Issuing Bank any amounts due to such
      Issuing Bank pursuant to this Section 2.4(e), such Issuing Bank shall be
      entitled to recover such amount, together with interest thereon, at the Federal
      Funds Effective Rate for the first three (3) Business Days after Defaulting
      Lender receives such notice and thereafter at the rate for ABR Loans, in either
      case payable (i) on demand, (ii) by setoff against any payments made to such
      Issuing Bank for the account of Defaulting Lender or (iii) by payment to such
      Issuing Bank by the Administrative Agent of amounts otherwise payable to
      Defaulting Lender under this Agreement. The failure of any Lender to make
      available to the Administrative Agent for the account of such Issuing Bank
      its
      Applicable Percentage of the unreimbursed amount of any LC Disbursement shall
      not relieve any other Lender of its obligation hereunder to make available
      to
      the Administrative Agent for the account of such Issuing Bank its Applicable
      Percentage of the unreimbursed amount of any LC Disbursement on the date such
      payment is to be made, but no Lender shall be responsible for the failure of
      any
      other Lender to make available to the Administrative Agent for the account
      of
      such Issuing Bank its Applicable Percentage of the unreimbursed amount of any
      LC
      Disbursement on the date such payment is to be made.

      
        
           

        

        
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    (iv) Whenever
      an Issuing Bank receives a payment on account of an LC Disbursement, including
      any interest thereon, it shall promptly pay to each Lender which has funded
      its
      participating interest therein, in like funds as received an amount equal to
      such Lender’s pro rata share thereof based on the amount funded.

    

    (v) The
      obligations of a Lender to make payments to the Administrative Agent for the
      account of an Issuing Bank with respect to LC Disbursements shall be absolute,
      unconditional and irrevocable, not subject to any counterclaim, set-off,
      qualification or exception whatsoever and shall be made in accordance with
      the
      terms and conditions of this Agreement under all circumstances, whether or
      not
      an Event of Default or a Default is then continuing.

    

    (vi) In
      the
      event any payment by Borrower received by the Administrative Agent with respect
      to a Letter of Credit and distributed by the Administrative Agent to the Lenders
      on account of their participations is thereafter set aside, avoided or recovered
      from the Administrative Agent in connection with any receivership, liquidation,
      reorganization or bankruptcy proceeding, each Lender which received such
      distribution shall, upon demand by the Administrative Agent, contribute such
      Lender’s Applicable Percentage of the amount set aside, avoided or recovered
      together with interest at the rate required to be paid by the Administrative
      Agent upon the amount required to be repaid by it.

    

    (f) Reimbursement.
      If an
      Issuing Bank shall make any LC Disbursement, the Borrower shall reimburse such
      LC Disbursement by paying to the Administrative Agent for the account of such
      Issuing Bank an amount in the Applicable Currency equal to such LC Disbursement
      not later than 12:00 Noon on the date that such LC Disbursement is made, if
      the Borrower shall have received notice by telephone or otherwise of such LC
      Disbursement prior to 10:00 a.m. on such date, or, if such notice has not
      been received by the Borrower prior to such time on such date, then not later
      than 12:00 Noon on (i) the Business Day that the Borrower receives
      such notice, if such notice is received prior to 10:00 a.m. on the day of
      receipt, or (ii) the Business Day immediately following the day that the
      Borrower receives such notice, if such notice is not received prior to such
      time
      on the day of receipt; provided that
      the
      Borrower may, subject to the conditions to borrowing set forth herein, request
      in accordance with Section 2.1 or 2.3 of this Agreement that such payment
      be financed with an ABR Loan or Swingline Loan in an equivalent amount and,
      to
      the extent so financed, the Borrower’s obligation to make such payment shall be
      discharged and replaced by the resulting ABR Loan or Swingline
      Loan.

     

    (g) Obligations
      Absolute.
      The
      Borrower’s obligations to reimburse LC Disbursements as provided in paragraph
      (f) of this Section shall be absolute, unconditional and irrevocable, and shall
      be performed strictly in accordance with the terms of this Agreement under
      any
      and all circumstances whatsoever and irrespective of (i) any lack of
      validity or enforceability of any Letter of Credit or this
      Agreement,

    

    
      
        
           

        

        
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    or
      any
      term or provision therein, (ii) any draft or other document presented under
      a Letter of Credit proving to be forged, fraudulent or invalid in any respect
      or
      any statement therein being untrue or inaccurate in any respect,
      (iii) payment by an Issuing Bank under a Letter of Credit against
      presentation of a draft or other document that does not comply strictly with
      the
      terms of such Letter of Credit so long as it complies in all material respects,
      (iv) the existence of any claim, set-off, defense or other right which Borrower
      or any Subsidiary may have at any time against the beneficiary named in a Letter
      of Credit or any transferee of any Letter of Credit (or any Person for whom
      any
      such transferee may be acting), any Issuing Bank, any Lender, any other Person,
      whether in connection with this Agreement, any Letter of Credit, the
      transactions contemplated herein or any unrelated transaction (including any
      underlying transactions between Borrower, any Subsidiary and the beneficiary
      named in any Letter of Credit), (v) the occurrence of any Event of Default
      or Default, or (vi) any other event or circumstance whatsoever, whether or
      not
      similar to any of the foregoing, that might, but for the provisions of this
      Section, constitute a legal or equitable discharge of, or provide a right of
      setoff against, the Borrower’s obligations hereunder. As among the Borrower, the
      Issuing Banks and the Lenders, the Borrower assumes all risks of the acts and
      omissions of, or misuse of the Letters of Credit by, the respective
      beneficiaries of the Letters of Credit requested by it. In furtherance and
      not
      in limitation of the foregoing, the Issuing Banks and the Lenders shall not
      be
      responsible for (i) the form, validity, sufficiency, accuracy, genuineness
      or
      legal effect of any document submitted by any party in connection with the
      application for and issuance of any Letter of Credit, even if it should in
      fact
      prove to be in any or all respect invalid, insufficient, inaccurate, fraudulent
      or forged; (ii) the validity or sufficiency of any instrument transferring
      or
      assigning or purporting to transfer or assign a Letter of Credit or the rights
      or benefits thereunder or proceeds thereof, in whole or in part, which may
      prove
      to be invalid or ineffective for any reason; (iii) failure of the beneficiary
      of
      a Letter of Credit to comply fully with conditions required in order to draw
      upon such Letter of Credit so long as such beneficiary is in material compliance
      with such conditions; (iv) errors, omissions, interruptions or delays in
      transmission or delivery of any messages, by mail, cable, telegraph, telex
      or
      otherwise; (v) errors in interpretation of technical terms; (vi) misapplication
      by the beneficiary of a Letter of Credit of the proceeds of any drawing under
      such Letter of Credit; or (vii) any consequences arising from causes beyond
      the
      control of the Issuing Banks or the Lenders. In addition to amounts payable
      as
      elsewhere provided in this Section 2.4, Borrower hereby agrees to protect,
      indemnify, pay and save the Administrative Agent, the Issuing Banks and each
      Lender harmless from and against any and all claims, demands, liabilities,
      damages, losses, posts, charges and expenses (including reasonable attorneys’
fees) arising from the claims of third parties against the Administrative Agent
      or such Issuing Banks in respect of any Letter of Credit requested by the
      Borrower. In furtherance and extension and not in limitation of the specific
      provisions hereinabove set forth, any action taken or omitted by any Issuing
      Bank or any Lender under or in connection with the Letters of Credit or any
      related certificates, if taken or omitted in good faith, shall not put any
      Issuing Bank, the Administrative Agent or such Lender under any resulting
      liability to Borrower or relieve Borrower of any of their obligations hereunder
      to any Issuing Bank, the Administrative Agent or any Lender. Notwithstanding
      anything to the contrary contained in this Section 2.4(g), Borrower shall not
      have any obligations to indemnify any Issuing Bank under this Section 2.4(g)
      in
      respect of any liability incurred by such Issuing Bank that is found in a final
      judgment by a court of competent jurisdiction to have

    

    
      
        
           

        

        
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    resulted
      primarily from such Issuing Bank’s own gross negligence or willful misconduct,
      unless such action or inaction on the part of such Issuing Bank which gave
      rise
      to the liability was taken at the request of Borrower or from the wrongful
      failure to pay the Letter of Credit except if pursuant to an order from a
      Governmental Authority (even if such order is later invalidated).

     

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

     

    (i) Interim
      Interest.
      If any
      Issuing Bank shall make any LC Disbursement, then regardless of the time of
      Borrower’s receipt of notice of such LC Disbursement, unless the Borrower shall
      reimburse such LC Disbursement in full on the date such LC Disbursement is
      made,
      the unpaid amount thereof shall bear interest, for each day from and including
      the date such LC Disbursement is made to, but excluding, the date that Borrower
      reimburses such LC Disbursement, at the rate per annum then applicable to ABR
      Loans; provided that,
      if the
      Borrower fails to reimburse such LC Disbursement when due pursuant to
      paragraph (f) of this Section, then the default interest rate set forth in
      Section 2.6(e)(iii) of this Agreement shall apply. Interest accrued
      pursuant to this paragraph shall be for the account of such Issuing Bank, except
      that interest accrued on and after the date of payment by any Lender pursuant
      to
      paragraph (e)(ii) or (e)(iii) of this Section to reimburse such Issuing
      Bank shall be for the account of such Lender to the extent of such
      payment.

     

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

     

    

    
      
        
           

        

        
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    (k) Cash
      Collateralization.
      If any
      Event of Default shall occur and be continuing, on the Business Day that the
      Borrower receives notice from the Administrative Agent or the Required Lenders
      (or, if the maturity of the Loans has been accelerated, Lenders with LC Exposure
      representing greater than fifty percent (50%) of the total LC Exposure)
      demanding the deposit of cash collateral pursuant to this paragraph, the
      Borrower shall deposit in an interest-bearing account with the Administrative
      Agent, in the name of the Administrative Agent and for the benefit of the
      Lenders, an amount in cash equal to the LC Exposure as of such date plus any
      accrued and unpaid interest thereon; provided that
      the
      obligation to deposit such cash collateral shall become effective immediately,
      and such deposit shall become immediately due and payable, without demand or
      other notice of any kind, upon the occurrence of any Event of Default with
      respect to any of the Borrower described in Section 8.1(d) or (e) of this
      Agreement. Such deposit shall be held by the Administrative Agent as Collateral
      for the payment and performance of the obligations of the Borrower under this
      Agreement. The Administrative Agent shall have exclusive dominion and control,
      including the exclusive right of withdrawal, over such account. Other than
      any
      interest earned on the interest-bearing account or on any investment of such
      deposits, which investments shall be made at the option and sole discretion
      of
      the Administrative Agent and at the Borrower’s risk and expense, such deposits
      shall not bear interest. Interest or profits, if any, on such investments shall
      accumulate in such account. Moneys in such account shall be applied by the
      Administrative Agent to reimburse any Issuing Bank for LC Disbursements for
      which it has not been reimbursed and, to the extent not so applied, shall be
      held for the satisfaction of the reimbursement obligations of the Borrower
      for
      the LC Exposure at such time or, if the maturity of the Loans has been
      accelerated (but subject to the consent of Lenders with LC Exposure representing
      greater than fifty percent (50%) of the total LC Exposure), be applied to
      satisfy other obligations of the Borrower under this Agreement. If the Borrower
      is required to provide an amount of cash collateral hereunder as a result of
      the
      occurrence of an Event of Default, such amount (to the extent not applied as
      aforesaid) shall be returned to the Borrower within three Business Days after
      all Events of Default have been cured or waived.

     

    2.5 Funding
      of Borrowings.
      (a)
Each
      Lender shall fund its Applicable Percentage of each Loan to be made hereunder
      on
      the proposed date thereof by wire transfer of immediately available funds (in
      the Applicable Currency) by (i) 2:00 p.m., in the case of Revolving Loans,
      and (ii) 11:00 a.m. in the case of Alternative Currency Loans, to the
      account most recently designated by the Administrative Agent for such purpose
      by
      notice to the Lenders; provided that
      Swingline Loans shall be made as provided in Section 2.3 hereof. The
      Administrative Agent will make such Loans available to the Borrower by promptly
      crediting the amounts so received, in like funds, to the Loan Account or, in
      the
      case of Alternative Currency Loans, such other account previously designated
      to
      the Administrative Agent in writing, which account must be in the name of the
      Borrower or a Subsidiary and in London or the financial center of the country
      of
      the Applicable Currency; provided that
      ABR
      Loans made to finance the reimbursement of an LC Disbursement as provided in
      Section 2.4(f) of this Agreement shall be remitted by the Administrative
      Agent to the

      
        
           

        

        
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    appropriate
      Issuing Bank and that Loans made to repay Swingline Loans as provided in
      Section 2.3 of this Agreement shall be remitted by the Administrative Agent
      to the Swingline Lender and that Loans made to purchase the Applicable
      Percentage of Automatically Converted Loans in Section 2.1(d) of this
      Agreement shall be remitted by the Administrative Agent to the applicable
      Lenders.

     

    (b) Unless
      the Administrative Agent shall have received notice from a Lender in accordance
      with Section 10.15 of this Agreement that such Lender will not make available
      to
      the Administrative Agent such Lender’s share of such borrowing, the
      Administrative Agent may assume that such Lender has made such share available
      on such date in accordance with paragraph (a) of this Section and may, in
      reliance upon such assumption, make available to the Borrower a corresponding
      amount. In such event, if a Lender has not in fact made its share of the
      applicable borrowing available to the Administrative Agent, then the Defaulting
      Lender and the Borrower severally agree to pay to the Administrative Agent
      forthwith on demand such corresponding amount with interest thereon, for each
      day from and including the date such amount is made available to the Borrower
      to
      but excluding the date of payment to the Administrative Agent, at (i) in
      the case of Defaulting Lender, the greater of the Federal Funds Effective Rate
      and a rate determined by the Administrative Agent in accordance with banking
      industry rules on interbank compensation or (ii)  in the case of the
      Borrower, the interest rate applicable to ABR Loans. If a Defaulting Lender
      pays
      such amount to the Administrative Agent, then such amount, less any interest
      paid to the Administrative Agent, shall constitute such Lender’s Loan included
      in such borrowing.
      Any
      Defaulting Lender shall pay on demand to the Borrower the amount equal to the
      excess of the interest actually paid by the Borrower to the Administrative
      Agent
      over the interest which would have otherwise been payable by the Borrower to
      such Defaulting Lender had such Defaulting Lender funded its share of the
      applicable borrowing, plus interest on such amount at the rate applicable to
      ABR
      Loans.

     

    2.6 Interest.

     

    (a) Rates.

     

    (i) The
      Revolving Notes shall bear interest, prior to maturity (whether by acceleration
      or otherwise) on the balance of principal thereof from time to time unpaid,
      payable in arrears on the first day of each month for interest accrued during
      the preceding month in the case of ABR Loans and in the case of Libor Loans
      payable in arrears on the last day of the applicable Interest Period, and in
      the
      case of an Interest Period in excess of three months also payable on the dates
      that are successively three months after the commencement of such Interest
      Period. The Revolving Loans shall bear interest in accordance with the Rate
      Option selected by the Borrower pursuant to the terms hereof.

     

    

    
      
        
           

        

        
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    (ii) The
      Alternative Currency Notes shall bear interest, prior to maturity (whether
      by
      acceleration or otherwise) on the balance of principal thereof from time to
      time
      unpaid, payable in arrears on the last day of the applicable Interest Period,
      and in the case of an Interest Period in excess of three months also payable
      on
      the dates that are successively three months after the commencement of such
      Interest Period. The Alternative Currency Loans shall bear interest at a rate
      of
      interest in accordance with the Libor Rate Option, pursuant to the terms
      hereof.

     

    (iii) The
      Swingline Note shall bear interest payable monthly in arrears on the first
      day
      of each month for interest accrued during the preceding month on the balance
      of
      principal from time to time unpaid.

     

    (b) Rate
      Options.

     

    (i) Unless
      the Borrower has selected a Libor Rate in accordance with the provisions of
      this
      Agreement, the Borrower shall be deemed to have selected the ABR Option to
      apply
      to any portion of a Revolving Note not subject to a Libor Rate, and such rate
      shall continue in effect until the earlier of when a Libor Rate and Interest
      Period are available and properly selected, or until the applicable Revolving
      Note is paid in full.

     

    Notice
      by
      the Borrower of the selection of a Libor Rate or Interest Period for any
      Revolving Loan or Alternative Currency Loan, the amount subject thereto, and
      the
      applicable Interest Periods shall be irrevocable. Such notice may be given
      to
      the Administrative Agent by a duly completed Request Certificate executed by
      the
      Borrower.

    

    (ii) The
      Alternative Currency Notes shall bear interest at the Libor Rate for the
      Interest Periods selected by the Borrower in accordance with the provisions
      of
      this Agreement.

    

    (iii) The
      Swingline Note shall bear interest at the rate of interest applicable to ABR
      Loans and such rate shall continue until the Swingline Note is paid in
      full.

    

    (c) Default
      Rate.
      Upon
      notice to the Borrower by the Administrative Agent of the occurrence of an
      Event
      of Default and during the continuance thereof and after maturity, whether by
      acceleration or otherwise, the Revolving Notes, Alternative Currency Notes
      and
      Swingline Notes shall bear interest at a per annum rate equal to two percent
      (2%) in excess of the otherwise applicable rate of interest thereon. Overdue
      fees and other amounts payable by the Borrower under this Agreement other than
      principal and interest (“Overdue Amounts”) shall also bear interest at a per
      annum rate equal to two percent (2%) in excess of the rate of interest
      applicable to ABR Loans while such sums remain unpaid. In no event shall the
      rate of interest on the Revolving Notes,

     

    
      
         

      

      
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    Alternative
      Currency Notes or the rate of interest applicable to Overdue Amounts exceed
      the
      maximum rate of interest authorized by law.

     

    (d) Computation
      of Interest.
      Interest on ABR Loans shall be calculated on the basis of a year of 365 days,
      or
      366 days during a leap year, for the actual number of days elapsed. Interest
      on
      Libor Loans shall be calculated on the basis of the actual number of days
      elapsed in a year of 360 days, which will result in a higher effective annual
      rate. If any of the Notes are not paid when due, whether because such Notes
      become due on a Saturday, Sunday or bank holiday or for any other reason, the
      Borrower will pay interest thereon at the aforesaid rate until the date of
      actual receipt of payment by the holder of the Notes.

     

    (e) Rate
      Conversions and Continuations.
      For any
      Revolving Loan, the Borrower may elect to convert any portion of (i) an ABR
      Loan to a Libor Loan, or (ii) a Libor Loan to an ABR Loan, or to continue
      any Libor Loan or ABR Loan as a new loan of the same Type; provided,
      however,
      Libor
      Loans may only be converted to ABR Loans or continued on the expiration date
      of
      the applicable Interest Period.

     

    Subject
      to the foregoing, with respect to a Revolving Loan, the Borrower may elect
      to
      convert any ABR Loan to a Libor Loan, or, to continue a Libor Loan as a new
      Libor Loan, by Borrower giving irrevocable notice of such election to the
      Administrative Agent by 1:00 p.m. at least two (2) Business Days prior to
      the requested rate change date and, in the case of any Libor Loan, such
      conversion or continuation shall take place on the last day of the applicable
      Interest Period with respect to the Revolving Loan being so converted or
      continued. Such notice may be given by a duly completed and executed Request
      Certificate. Each such request to convert or continue shall include the
      requested rate change date (which shall be a Business Day), the Rate Option
      selected, and the amount to be converted or continued (which shall be in a
      principal amount of $2,000,000 or more and in whole multiples of $1,000,000
      in
      the case of conversion to, or continuation as, a Libor Loan). If no Event of
      Default or Default is then existing at such time, and the Borrower is in
      compliance with the terms of this Agreement as evidenced by the Administrative
      Agent’s receipt of a properly completed and executed Request Certificate, such
      conversion or continuation shall be made on the requested rate change date,
      subject to the foregoing limitations in connection with the conversion or
      continuation of Libor Loans.

    

    The
      Administrative Agent shall not incur any liability to Borrower in acting upon
      any telephonic notice which the Administrative Agent believes to have been
      given
      by a duly authorized officer or other designated representative of such
      Borrower, and which is confirmed by delivery to the Administrative Agent from
      the Borrower or the Borrower of a written or facsimile notice signed by Borrower
      or the Borrower, or for otherwise acting in good faith hereunder.

    

    
      
        
           

        

        
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    Notwithstanding
      the foregoing, Alternative Currency Loans shall at all times be Libor Loans,
      must comply with all provisions of this Agreement applicable to Libor Loans
      and
      may not be converted by the Borrower into ABR Loans.

    

    2.7 Prepayments.

     

    (a) Optional
      Prepayments.

     

    (i) ABR
      Loans.
      Borrower shall have the right to prepay at any time without premium all or
      any
      portion of the ABR Loans.

     

    (ii) Libor Loans.
      Borrower shall have the right to prepay without premium all or any portion
      of
      the Libor Loans on the expiration day of the applicable Interest Period. If
      any
      Libor Loan is prepaid at any other time, the applicable Borrower shall pay
      to
      the applicable Lender an amount equal to the Breakage Fee within 10 days of
      notice thereof from the Lender, setting forth the amount of such Breakage
      Fee.

     

    All
      prepayments of the Revolving Loans and Alternative Currency Loans shall be
      subject to a minimum amount of $2,000,000, and incremental multiples of
      $1,000,000 thereafter or the Dollar Equivalent thereof in the case of
      Alternative Currency Loans.

    

    (b) Mandatory
      Prepayments.

     

    (i)  Net
      Proceeds.
      Borrower shall make a mandatory prepayment to the Administrative Agent for
      the
      account of the Lenders in accordance with their Applicable Percentages, promptly
      upon receipt thereof, equal to all (100%) of the Net Proceeds received by the
      Borrower or any Subsidiary from (1) insurance, condemnation and similar
      recoveries in excess of $10,000,000 other than such recoveries that are promptly
      applied in the ordinary course of business toward repair or replacement of
      the
      damaged property; and (2) the reversion of Pension Plan assets from an
      over-funded Pension Plan, but only to the extent of such over-funding. Borrower
      shall give to the Administrative Agent written notice of the occurrence of
      an
      event requiring a mandatory prepayment hereunder promptly, but not later than
      within thirty (30) days after the occurrence of such an event.

     

    (ii) Commitments
      Exceeded.
      If on
      any date, the Revolving Credit Exposures of the Lenders exceed the Total
      Commitment, or the Revolving Credit Exposure of any Lender exceeds such Lender’s
      Commitment, or the aggregate principal amount of Swingline Loans exceeds the
      Swingline Commitment, or the total LC Exposure exceeds the Letter of Credit
      Commitment, then in each case the Borrower shall, upon
      request
      made by the Administrative Agent, prepay on such date the principal amount
      of
      Loans in an aggregate amount equal to such excess or, in the case where total
      LC
      Exposure exceeds the Letter of Credit

    

    
      
        
           

        

        
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    Commitment,
      pay to the Administrative Agent an amount in cash equal to such excess to be
      held as security for the reimbursement obligations of the Borrower in respect
      of
      Letters of Credit pursuant to a cash collateral agreement to be entered into
      in
      form and substance reasonably satisfactory to the Administrative Agent, the
      Borrower and the Issuing Banks.

     

    If
      the
      Administrative Agent notifies the Borrower at any time that the Assigned Dollar
      Value of the outstanding amount of all Loans and Letters of Credit denominated
      in Alternative Currencies at such time exceeds an amount equal to 105% of the
      Alternative Currency Sublimit then in effect, then, within two (2) Business
      Days
      after receipt of such notice, the Borrower shall prepay Loans in an aggregate
      amount sufficient to reduce such outstanding amount as of such date of payment
      to an amount not to exceed 100% of the Alternative Currency Sublimit then in
      effect.

    

    In
      the
      event of any repayment or prepayment of any Loan (other than a repayment or
      prepayment of an ABR Loan prior to the end of the Availability Period with
      no
      related Commitment reduction), the Borrower shall pay all accrued interest
      on
      the principal amount repaid or prepaid on the date of such repayment or
      prepayment.

    

    The
      proceeds of any mandatory prepayments paid to or for the account of the Lenders
      shall be applied by the Lender entitled thereto on the applicable Indebtedness
      hereunder first to accrued interest, fees and expenses payable thereon and
      then
      to principal.

    

    2.8 Use
      of Proceeds.
      Borrower covenants to the Lenders that Borrower will use the proceeds borrowed
      under this Agreement to refinance the indebtedness under the 2003 Agreement;
      for
      Borrower’s ongoing working capital and business requirements including Permitted
      Acquisitions; and no part of such proceeds will be used directly or indirectly
      to purchase or carry Margin Stock, or to extend credit to others for the purpose
      of purchasing or carrying any Margin Stock, in violation of any of the
      provisions of Regulations U or X of the Board of Governors of the Federal
      Reserve System. Borrower further covenants that Borrower is not engaged in
      the
      business of extending credit for the purpose of purchasing or carrying any
      Margin Stock.

     

    2.9 Special
      Provisions Governing Libor Loans - Increased Costs.
      (a)  In
      the
      event that on any Libor Interest Determination Date, any Lender shall have
      determined (which determination shall be final, conclusive and binding)
      that:

     

    (1) by
      reason
      of conditions in the London Interbank Market or of conditions affecting the
      position of such Lender in such market occurring after the date hereof, adequate
      fair means do not exist for establishing the Libor Rate, or

     

    (2) by
      reason
      of (i) any applicable law or governmental rule, regulation, guideline or
      order (or any written interpretation thereof and including any new law
      or

     

    
      
         

      

      
        -50-

        
          

        

      

      
         

      

    

     

    governmental
      rule, regulation, guideline or order but excluding any of the foregoing relating
      to Taxes referred to in Section 2.11 of this Agreement), or (ii) other
      circumstances affecting the Lenders or the London Interbank Market or the
      position of the Lenders in such market (such as, but not limited to, official
      reserve requirements), the Libor Rate does not represent the effective pricing
      to the Lenders for U.S. dollar deposits of comparable amounts for the relevant
      period due to such increased costs; then, and in either such event, the Lenders
      shall on such date (and in any event as soon as possible after being notified
      of
      a new Interest Period) give notice by telephone, confirmed in writing, to the
      Borrower or the Borrower and the Administrative Agent of such
      determination.

     

    (b) Thereafter,
      the Borrower shall pay to the applicable Lender upon written request therefor,
      such additional amounts as such Lender shall reasonably determine to be required
      to compensate such Lender for such increased costs. A certificate as to such
      additional amounts submitted to the Borrower and the Administrative Agent by
      a
      Lender shall, absent manifest error, be final, conclusive and binding upon
      the
      Borrower and such Lender.

     

    (c) In
      lieu
      of paying to a Lender such additional amounts as required by this
      Section 2.9, the Borrower may exercise the following options:

     

    (1) If
      such
      determination by a Lender relates only to a Libor Loan then being requested
      by
      the Borrower pursuant to the terms hereof, the applicable Borrower may, on
      such
      Libor Interest Determination Date by giving notice by telephone to such Lender,
      withdraw such request; or

     

    (2) The
      Borrower may, by giving notice by telephone to a Lender require such Lender
      to
      make the Libor Loan then being requested in the form of an ABR Loan or to
      convert its outstanding Libor Loan that is so affected into an ABR Loan at
      the
      end of the then current Interest Period.

     

    2.10 Required
      Termination and Repayment of Libor Loans. (a)  In
      the event a Lender shall have reasonably determined, at any time (which
      determination shall be final, conclusive and binding but shall be made only
      after consultation with the Borrower and the Administrative Agent), that the
      making or continuation of any or all of the Libor Loans hereunder:

     

    (1) has
      become unlawful by compliance by Lender in good faith with any applicable law,
      governmental rule, regulation, guideline or order, or

     

    (2) would
      cause Lender severe hardship as a result of a contingency occurring after the
      date hereof which materially and adversely affects the London Interbank Market
      (such as, but not limited to disruptions resulting from political or economic
      events); then, and in either such event, such Lender shall on such date (and
      in
      any event as soon as possible after making such determination) give telephonic
      notice to the Borrower and the

    

    
      
        
           

        

        
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    Administrative
      Agent, confirmed in writing, of such determination, identifying which of the
      Libor Loans was so affected.

     

    (b) The
      Borrower then shall, upon the termination of the then current Interest Period
      applicable to each Libor Loan so affected or, if earlier, when required by
      law,
      repay each such affected Libor Loan, together with all interest accrued
      thereon.

     

    (c) In
      lieu
      of the repayment to the applicable Lender required by Section 2.10(b) of
      this Agreement, the Borrower may exercise the following options:

     

    (1) If
      the
      determination by such Lender relates only to a Libor Loan then being requested
      by Borrower pursuant to the terms hereof, the Borrower may, on such date by
      giving notice by telephone to such Lender, withdraw such request;
      or

     

    (2) The
      Borrower may, by Borrower giving notice by telephone to such Lender, require
      the
      Lender to make the Libor Loan then being requested in the form of an ABR Loan,
      or to convert its outstanding Libor Loan or Loans that are so affected into
      an
      ABR Loan at the end of the then current Interest Period applicable to each
      such
      Libor Loan (or at such earlier time as repayment is otherwise required to be
      made pursuant to the terms hereof). Such notice shall pertain only to the Libor
      Loan outstanding or to be outstanding during each such affected Interest
      Period.

     

    2.11 Taxes.
      If any
      Taxes shall be payable, or ruled to be payable, by or to any Governmental
      Authority, by, or in respect of any amount owing to, any Lender which has
      complied with Section 10.18 of this Agreement, relating to any of the
      transactions contemplated by this Agreement (including, but not limited to,
      execution, delivery, performance, enforcement, or payment of principal or
      interest of or under the Notes or the making of any Libor Loan), by reason
      of
      any now existing or hereafter enacted statute, rule, regulation or other
      determination (excluding any Taxes imposed on or measured by the net income
      of
      any Lender), the Borrower will:

     

    (a) pay
      on
      written request therefor all such Taxes, including interest and penalty, if
      any,

     

    (b) promptly
      furnish the Administrative Agent and the Lenders with evidence of any such
      payment, and

     

    (c) indemnify
      and hold the Administrative Agent and the Lenders and any holder or holders
      of
      the Notes harmless and indemnified against any liability or liabilities with
      respect to or in connection with any such Taxes or the payment thereof or
      resulting from any delay or omission to pay such Taxes.

    

    
      
        
           

        

        
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    Without
      prejudice to the survival of any other agreement of the Borrower under this
      Agreement, the agreement and obligations of the Borrower contained in this
      Section 2.11 shall survive the termination of this Agreement.

     

    

    2.12 Commitment
      Fee.
      For
      each day during (i) the period beginning on the date of this Agreement and
      ending December 31, 2006, (ii) each full calendar quarter thereafter
      during the term of this Agreement and (iii) the period beginning on the
      first day of the calendar quarter containing the Revolving Credit Maturity
      Date
      and ending on the day before the Revolving Credit Maturity Date, the Borrower
      shall pay, on demand, following each such calendar quarter or other time period,
      to the Administrative Agent for the account of each Lender a fee equal to the
      Applicable Commitment Fee Rate times
      the
      actual daily amount by which the Total Commitment on such day exceeds the sum
      of
      (x) the outstanding amount of Loans and (y) the outstanding amount of the
      aggregate Dollar Equivalent of the total LC Exposure of the Lenders multiplied
      by 1/360.

     

    2.13 Revolving
      Loan Commitment Termination and Reduction.
      (a)
      Unless previously terminated, the Commitment shall terminate on the Revolving
      Credit Maturity Date.

     

    (b) The
      Borrower may, at any time by three (3) Business Days prior written notice from
      the Borrower to the Administrative Agent, state the Borrower’s desire to reduce
      the Maximum Limit to any amount which is not less than the aggregate of the
      then
      outstanding principal amount of Revolving Loans, Alternative Currency Loans,
      Swingline Loans and the face amount of outstanding undrawn Letters of Credit,
      if
      any. Any reductions of the Maximum Limit shall not be reinstated at any future
      date and any partial reduction shall be in the amount of $2,000,000 and in
      incremental multiples of $1,000,000 thereafter. Two Business Days after receipt
      of such reduction notice, the obligation of the Lenders to make Revolving Loans
      or Alternative Currency Loans hereunder or purchase participations in Swingline
      Loans or Alternative Currency Loans or Letters of Credit hereunder shall be
      limited to the Maximum Limit as reduced pursuant to said notice.
      Any such
      reduction of the Commitment shall be accompanied by payment of any applicable
      Breakage Fees.

     

    2.14 Payments.
      All
      payments of interest, principal, fees and other expenses by the Borrower under
      this Agreement unless otherwise specified shall be made (a) in lawful currency
      of the United States of America or (b) in the case of amounts denominated
      in an Alternative Currency, in such Alternative Currency, and in immediately
      available funds without counterclaim or setoff and free and clear and without
      reduction for any present or future income, stamp or other Taxes, deductions
      or
      withholdings, all of which shall be paid by the Borrower for its own account
      except as otherwise provided in Section 10.18 of this Agreement. All
      payments shall be made not later than 12:00 Noon on the due date at the
      Administrative Agent’s office or such other

    

    
      
        
           

        

        
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    office
      designated by the Administrative Agent in the case of payments made in an
      Alternative Currency. All payments (unless stated herein otherwise) shall be
      applied first to the payment of all fees, expenses and other amounts due to
      the
      Lenders (excluding principal and interest), then to accrued interest, and the
      balance on account of outstanding principal; provided,
      however,
      that
      after a Default or an Event of Default, payments will be applied to the
      obligations of Borrower to the Lenders as the applicable Lender determines
      in
      its sole discretion.

     

    2.15 Payments
      with Respect to Defaulting Lenders.
      No
      payments of principal, interest or fees delivered to the Administrative Agent
      for the account of any Defaulting Lender shall be delivered by the
      Administrative Agent to such Defaulting Lender. Instead, such payments shall,
      for so long as such Defaulting Lender shall be a Defaulting Lender, be held
      by
      the Administrative Agent, and the Administrative Agent is hereby authorized
      and
      directed by all parties hereto to hold such funds in escrow and apply such
      funds
      as follows:

     

    (a) First,
      if
      applicable, to any payments due to any Issuing Bank pursuant to Section 2.4(e)
      of this Agreement or the Administrative Agent under Section 2.1(d),
      Section 2.3 or Section 2.5 of this Agreement; and

     

    (b) Second,
      to
      Loans required to be made by such Defaulting Lender on any borrowing date to
      the
      extent such Defaulting Lender fails to make such Loans; and

     

    (c)
       Third,
      to the
      payment of any amount due to the Borrower under Section 2.5(b) of this
      Agreement.

     

    Notwithstanding
      the foregoing, upon the termination of the Commitments and the payment and
      performance of all of the Indebtedness and other obligations of the Borrower
      under this Agreement (other than those owing to a Defaulting Lender), any funds
      then held in escrow by the Administrative Agent pursuant to the preceding
      sentence shall be distributed to each Defaulting Lender, pro rata in proportion
      to amounts that would be due to each Defaulting Lender but for the fact that
      it
      is a Defaulting Lender.

     

    2.16 Upfront
      Fees.
      Borrower shall pay to each of the Lenders on the Closing Date the upfront fees
      in the amounts determined for each Lender in accordance with the term sheet
      dated August 18, 2006 contained in the Confidential Information
      Materials.

     

    2.17 Administrative
      Agent Fees.
      The
      Borrower shall pay to the Administrative Agent for its own account the fees
      in
      the amounts and on the dates previously agreed to in writing by the Borrower
      and
      the Administrative Agent.

     

    

    
      
        
           

        

        
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    2.18 Substitution
      of Lender.
      If (a)
      the obligation of any Lender to make or maintain Libor Loans has been suspended
      pursuant to Section 2.10 of this Agreement when not all Lenders’ obligations to
      do so have been suspended, (b) any Lender has demanded compensation under
      Sections 2.9 or 2.10 of this Agreement, or Yield Protection under
      Section 2.19 of this Agreement or a payment for a change in Capital
      Adequacy Regulations under Section 2.20 of this Agreement, in each case
      when all Lenders have not done so, (c) any Lender is a Defaulting Lender or
      (d) any payment of Taxes by the Borrower is required under
      Section 2.11 hereof, the Borrower shall have the right, if no Default then
      exists, to replace such Lender (a “Replaced Lender”) with one or more other
      lenders (each, a “Replacement Lender”) reasonably acceptable to the
      Administrative Agent, provided that (i) at the time of any replacement pursuant
      to this Section 2.18, each Replacement Lender shall enter into one or more
      Assignment and Assumptions pursuant to which the Replacement Lender shall
      acquire the Commitments and outstanding Loans and other obligations of the
      Replaced Lender and, in connection therewith, shall pay to the Replaced Lender
      in respect thereof an amount equal to the sum of (A) the amount of principal
      of,
      and all accrued interest on, all outstanding Loans of the Replaced Lender,
      (B)
      the amount of all accrued, but theretofore unpaid, fees and expenses, if
      applicable, owing to the Replaced Lender hereunder and (C) the amount which
      would be payable by the Borrower to the Replaced Lender pursuant to Section
      2.7(a)(ii) of this Agreement, if any, if the Borrower prepaid at the time of
      such replacement all of the Loans of such Replaced Lender outstanding at such
      time and (ii) all obligations of the Borrower under this Agreement and the
      other
      Loan Documents then owing to the Replaced Lender (other than those specifically
      described in clause (i) above in respect of which the assignment purchase price
      has been, or is concurrently being, paid) shall be paid in full by the Borrower
      to such Replaced Lender concurrently with such replacement. Upon the execution
      of the respective Assignment and Assumption, the payment of amounts referred
      to
      in clauses (i) and (ii) above and, if so requested by the Replacement Lender,
      delivery to the Replacement Lender of the appropriate Note or Notes executed
      by
      the Borrower, the Replacement Lender shall become a Lender hereunder and the
      Replaced Lender shall cease to constitute a Lender hereunder. The provisions
      of
      this Agreement shall continue to govern the rights and obligations of a Replaced
      Lender with respect to any Loans made or any other actions taken by such
      Replaced Lender while it was a Lender. Nothing herein shall release any
      Defaulting Lender from any obligation it may have to the Borrower, the
      Administrative Agent, any Issuing Bank, Swingline Lender or any other
      Lender.

     

    2.19 Yield
      Protection.
      If the
      introduction of any change in, or change in the interpretation of, after the
      date of this Agreement, any law or any governmental or quasi-governmental rule,
      regulation, policy, guideline or directive (whether or not having the force
      of
      law), or any change or modification thereof,

     

    (a) has
      the
      effect of changing the basis of taxation of payments to any Lender in respect
      of
      its Loans or other amounts due it hereunder (excluding income taxes
      and

    

    
      
        
           

        

        
          -55-

          
            

          

        

        
           

        

      

    

    

    franchise
      taxes (imposed in lieu of income taxes) imposed on the Administrative Agent
      or
      any Lender as a result of a present or former connection between the
      Administrative Agent or such Lender and the jurisdiction of the Governmental
      Authority imposing such tax or any political subdivision or taxing authority
      thereof or therein, other than any such connection arising solely from the
      Administrative Agent or such Lender having executed, delivered or performed
      its
      obligations or received a payment under, or enforced, this Agreement or any
      other Loan Document), or 

     

    (b) has
      the
      effect of increasing or deeming applicable any reserve, assessment, insurance
      charge, special deposit or similar requirement against assets of, deposits
      with
      or for the account of, or credit extended by, any Lender, or

     

    (c) imposes
      any other condition the result of which is to increase the cost to any Lender
      of
      making, funding or maintaining loans or reduces any amount receivable by any
      Lender in connection with loans, or requires any Lender to make any payment
      calculated by reference to the amount of loans held or interest received by
      it
      (excluding for such purpose “Taxes” as to which Section 2.11 shall apply),
      by an amount reasonably deemed material by such Lender, 

     

    then,
      within fifteen (15) days of demand by such Lender, the Borrower shall pay such
      Lender that portion of such increased expense incurred or reduction in an amount
      received which such Lender reasonably determines is attributable to making,
      funding and maintaining its Loans or its Commitment.

    

    2.20 Changes
      in Capital Adequacy Regulations.
      If a
      Lender reasonably determines the amount of capital required or expected to
      be
      maintained by such Lender or any corporation controlling such Lender is
      increased as a result of a Change (as defined below), then, within fifteen
      (15)
      days of demand by such Lender, the Borrower shall pay such Lender the amount
      necessary to compensate for any shortfall in the rate of return on the portion
      of such increased capital which such Lender determines is attributable to this
      Agreement, its Loans or its obligation to make Loans hereunder (after taking
      into account such Lender’s policies as to capital adequacy). As used herein,
“Change” means (a) any change after the date of this Agreement in the Risk-Based
      Capital Guidelines (as defined below) or (b) any adoption of or change in any
      other law, governmental or quasi-governmental rule, regulation, policy,
      guideline, interpretation, or directive (whether or not having the force of
      law)
      after the date of this Agreement which affects the amount of capital required
      or
      expected to be maintained by any Lender or any corporation controlling any
      Lender. “Risk-Based Capital Guidelines” means (i) the risk-based capital
      guidelines in effect in the United States of America on the date of this
      Agreement, including transition rules, and (ii) the corresponding capital
      regulations promulgated by regulatory authorities outside the United States
      of
      America implementing the July 1988 report of the Basel Committee on Banking
      Regulation and Supervisory Practices Entitled “International Convergence of
      Capital Measurements and Capital Standards,” including transition rules, and any
      amendments to such regulations adopted prior to the date of this
      Agreement.

    

    
      
        
           

        

        
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    2.21 Lender
      Statements; Survival of Indemnity.
      To the
      extent reasonably possible, each Lender shall designate an alternate office,
      branch or Affiliate with respect to its Libor Loans to reduce any liability
      of
      Borrower to such Lender under Sections 2.9, 2.11, 2.19 and 2.20 of this
      Agreement, so long as such designation is not disadvantageous to such Lender
      in
      any material respect. Each Lender shall deliver a written statement of such
      Lender to the Borrower (with a copy to the Administrative Agent) as to the
      amount due, if any, under Section 2.9, 2.11, 2.19 or 2.20 of this Agreement.
      Such written statement shall set forth in reasonable detail the calculations
      upon which such Lender determined such amount and shall state that amounts
      determined in accordance with such procedures are being charged by such Lender
      to other Borrower with credit facilities similar to this Agreement and credit
      characteristics comparable to the Borrower as determined by such Lender and
      shall be final, conclusive and binding on the Borrower in the absence of
      manifest error. Determination of amounts payable under such sections in
      connection with a Libor Loans shall be calculated as though each Lender funded
      such Loans through the purchase of a deposit of the type and maturity
      corresponding to the deposit used as a reference in determining the interest
      rate applicable to such Loan, whether in fact that is the case or not. Unless
      otherwise provided herein, the amount specified in the written statement of
      any
      Lender shall be payable on demand after receipt by the Borrower of such written
      statement. The obligations of the Borrower under Sections 2.9, 2.19 and 2.20
      of
      this Agreement shall survive payment of the Indebtedness under this Agreement
      and termination of this Agreement. The Borrower shall have no obligation to
      compensate any Lender with respect to amounts provided in Sections 2.19 and
      2.20
      of this Agreement with respect to any period prior to the date which is ninety
      (90) days prior to the date such Lender delivers its written statement hereunder
      requesting compensation.

     

    ARTICLE
      III. CONDITIONS
      TO THE CREDIT

     

    The
      Lenders’ agreement to lend, contained in this Agreement, shall be effective only
      upon fulfillment of the following conditions at or prior to the date
      specifically set forth herein.

     

    3.1 No
      Default.
      (i)
      There not existing at the time such Loan is to be made any Event of Default
      or
      Default and (ii) such Lender not reasonably believing that any Event of Default
      or Default so exists or, if such Loan is made, will occur or exist.

     

    3.2 Representations
      and Warranties.
      (i)
      Each representation and warranty made in this Agreement being true and correct
      in all material respects as of the date of this Agreement and, except to the
      extent updated in a certificate executed by a Responsible Officer of Borrower
      and received by each Lender before the time such Loan is to be made, as of
      such
      time, (ii) each other representation and warranty made to any Lender by or
      on
      behalf of the Borrower pursuant to any Loan Document before the

    

    
      
        
           

        

        
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    time
      such
      Loan is to be made being true and correct in all material respects as of the
      date thereof, (iii) each financial statement provided to any Lender by or on
      behalf of the Borrower pursuant to any Loan Document before the time such Loan
      is to be made having fairly presented the financial information it purports
      to
      reflect as of the date thereof and (iv) such Lender not reasonably believing
      that (A) any such representation or warranty, except to the extent so updated,
      was or is other than true and correct in all material respects as of any date
      or
      time of determination of the truth or correctness thereof, (B) any event or
      condition the occurrence, non-occurrence, existence or non-existence of which
      is
      a subject of any such representation or warranty would have any Material Adverse
      Effect or (C) any such financial statement did not so fairly present such
      information as of the date thereof.

     

    3.3 Proceedings.
      Such
      Lender being satisfied as to each corporate or other proceeding of the Borrower
      or any Subsidiary in connection with any transaction contemplated by this
      Agreement.

     

    3.4 Closing
      Conditions.
      The
      receipt by each Lender on the date of this Agreement, or the Swingline Lender
      or
      the Issuing Banks, as appropriate, unless otherwise indicated, of the following,
      in form and substance satisfactory to each Lender:

     

    (a) A
      Revolving Loan Note payable to the order of such Lender, appropriately completed
      and duly executed by the Borrower;

     

    (b) A
      request
      for the Revolving Loan determined by the Administrative Agent to meet the
      requirements for such a request set forth in Section 2.1 of this
      Agreement;

     

    (c) An
      Alternative Currency Note payable to the order of each Lender appropriately
      completed and duly executed by the Borrower;

     

    (d) A
      Swingline Note payable to the order of the Swingline Lender appropriately
      completed and duly executed by the Borrower;

     

    (e) An
      Amended and Restated Continuing, Absolute and Unconditional Guaranty Agreement
      in favor of the Administrative Agent appropriately completed and duly executed
      by each Domestic Subsidiary, unlimited as to amount;

     

    (f) (i)
      An
      Amended and Restated General Security Agreement in favor of the Administrative
      Agent, appropriately completed and duly executed by Borrower and each Domestic
      Subsidiary, covering, together with all other personal property and fixtures
      of
      such Person, all of the issued and outstanding shares of each class of stock
      and
      other ownership interests of Borrower in each Domestic Subsidiary and 65% of
      the
      issued and outstanding shares of each class of stock and other ownership
      interests of Borrower in Moog Europe Holdings y

    

    
      
        
           

        

        
          -58-

          
            

          

        

        
           

        

      

    

    

    Cia,
      S.L.S. and each other Directly-Owned Foreign Subsidiary, together with each
      agreement, instrument and other writing evidencing any security covered thereby,
      and (ii) amended negative pledge agreements appropriately completed and duly
      executed by Moog Europe Holdings y Cia Sociedad Commandataria and Moog Holding
      GmbH KG, respectively, pledging not to make any sale, assignment, contribution,
      transfer or other disposition of the stock or other ownership interests of
      any
      of their direct or indirect subsidiaries except as otherwise permitted under
      this Agreement, and pledging not to consent to or permit the creation of any
      Lien upon the stock or other ownership interests in any of their direct
      subsidiaries or consent to or permit the creation of any Lien upon the stock
      or
      other ownership interests of any of their indirect subsidiaries;

     

    (g) Amended
      Patent, Trademark and Copyright Collateral Assignments and Security Agreements
      in favor of the Administrative Agent, appropriately completed and duly executed
      by the Borrower and each Domestic Subsidiary;

     

    (h) Mortgage
      Modification Agreements or Deed of Trust Modification Agreements and Modified
      Assignments of Leases and Rents in favor of the Administrative Agent, as deemed
      necessary by the Administrative Agent, appropriately completed and duly executed
      by, as required, the Borrower or the applicable Subsidiary in order to continue
      the existing liens on real property of the Borrower and certain Subsidiaries
      on
      the properties described in part B of the Background Section of this
      Agreement;

     

    (i) Satisfactory
      updated title searches or title insurance policy endorsements to the existing
      mortgagee’s title insurance policies issued to Administrative Agent in
      connection with the 2003 Agreement relating to the real property covered by
      the
      Mortgages, Deeds of Trust and Assignments of Leases and Rents referred to in
      Section 3.4(g);

     

    (j) An
      opinion of Hodgson, Russ LLP, counsel to the Borrower, addressed to each Lender
      and counsel to the Administrative Agent, and in form and content satisfactory
      to
      the Administrative Agent, substantially in the form of the opinion issued in
      connection with the 2003 Agreement, but to include such matters relative to
      the
      Subordinated Indenture as the Administrative Agent shall reasonably
      require;

     

    (k) Evidence
      that each of the Borrower and all Domestic Subsidiaries are (i) in good standing
      under the Law of the jurisdiction in which it is organized and (ii) duly
      qualified and in good standing as a foreign Person of its type authorized to
      do
      business in each jurisdiction in which such qualification is necessary except
      where the failure to so qualify would not have any Material Adverse
      Effect;

     

    (l) A
      copy of
      the certificate or articles of incorporation or organization, by-laws, operating
      or partnership agreement or other charter, organizational or governing document
      of each of the Borrower and all Domestic Subsidiaries certified by its
      Secretary, or a Person having functions with respect to it similar to those
      of
      the Secretary of a corporation, to be complete and accurate;

    

    
      
        
           

        

        
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    (m) Evidence
      of the taking and the continuation in full force and effect of each corporate
      or
      other action of the Borrower or any other Person necessary to authorize the
      obtaining of all Loans by the Borrower, the execution, delivery and performance
      of each Loan Document by each Person other than any Lender and the imposition
      or
      creation of each security interest, mortgage and other lien and encumbrance
      imposed or created pursuant to any Loan Document;

     

    (n) Evidence
      (i) that no asset subject to any mortgage, security interest or other lien
      or
      encumbrance pursuant to any Security Document is subject to any other security
      interest, mortgage or other lien or encumbrance, except for Permitted
      Encumbrances, and (ii) of the making of each recording and filing, and of the
      taking of each other action, deemed necessary or desirable by the Administrative
      Agent at the sole option of the Administrative Agent to perfect or otherwise
      establish, preserve or protect the priority of any such security interest,
      mortgage or other lien or encumbrance;

     

    (o) Evidence
      that each requirement contained in any Loan Document with respect to insurance
      is being met;

     

    (p) Each
      additional agreement, instrument and other writing (including, but not limited
      to, each agreement, instrument and other writing intended to be filed or
      recorded with any Governmental Authority to perfect or otherwise establish,
      preserve or protect the priority of any security interest, mortgage or other
      lien or encumbrance created or imposed pursuant to any Loan Document;
      and

     

    (q) Receipt
      by the Administrative Agent of an Omnibus Assignment Agreement in form and
      content satisfactory to the Administrative Agent whereby each of the lenders
      under the 2003 Agreement assigns to the Administrative Agent the indebtedness
      owed to them by Borrower and endorses and delivers to the Administrative Agent
      the notes evidencing such indebtedness.

     

    Payment
      of all costs and expenses incurred as of the Closing Date by the Administrative
      Agent and payable pursuant to Section 9.1 of this Agreement.

    

    3.5 Conditions
      to Subsequent Borrowing and Issuance.
      The
      obligation of the appropriate Lender to make a Loan to Borrower or issue or
      renew a Letter of Credit (collectively, “Issuance”) and the right of the
      Borrower to request a Loan or Issuance after the date of this Agreement shall
      each be subject to the further conditions that on the date of the making of
      such
      Loan or such Issuance:

     

    (a) Each
      of
      the conditions listed in Section 3.4 shall have been satisfied or waived in
      accordance with this Agreement.

     

    

    
      
        
           

        

        
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    (b) The
      following statements shall be true and the Administrative Agent shall have
      received a Request Certificate signed by a Responsible Officer of Borrower
      dated
      the date of such Loan or Issuance stating that: 

     

    (i) there
      does not exist at the time such Loan or Issuance is to be made any Event of
      Default, Default or Material Adverse Effect; 

    

    

    (ii) each
      representation and warranty made in this Agreement and any Loan Document to
      which the Borrower is a party and in any certificate, document or financial
      or
      other statement furnished at any time thereunder is true, correct and complete
      in all material respects with the same effect as though such representations
      and
      warranties had been made as of the time such Loan or Issuance is to be made,
      except to the extent any such representation and warranty relates solely to
      an
      earlier date, or to the extent any such representation and warranty has been
      updated in a certificate executed by a Responsible Officer and received by
      the
      Administrative Agent before the time such Loan or Issuance is to be made;
      and

    

    (iii) the
      incurrence of such Loan or Issuance is permitted by the terms of the
      Subordinated Indenture and will constitute Senior Debt and Designated Senior
      Debt under, and as defined in, the Subordinated Indenture.

    

    (c) The
      Administrative Agent shall have received such other approvals, opinions or
      documents as the Administrative Agent may reasonably, in both time and scope,
      request, and all legal matters incident to such Loan or Issuance shall be
      satisfactory to counsel to the Administrative Agent.

    

    3.6 Subsequent
      Extensions of Credit.
      Subsequent to the satisfaction of the conditions set forth herein, each request
      to the Administrative Agent for a Revolving Loan, Alternative Currency Loan,
      Swingline Loan or Letter of Credit after the date hereof shall constitute
      confirmation by the Borrower of all the factual matters set forth in the form
      of
      Compliance Certificate as of the date of such request in the same manner as
      if a
      written Compliance Certificate had been delivered, and such factual matters
      shall be true in all material respects on the date such Revolving Loan,
      Swingline Loan, Alternative Currency Loan or Letter of Credit is made or issued.
      No Revolving Loan, Swingline Loan, Alternative Currency Loan or Letter of Credit
      shall be made if such certification is not made without
      qualification.

     

    ARTICLE
      IV. REPRESENTATIONS
      AND WARRANTIES

     

    The
      Borrower makes the following representations and warranties:

    

    
      
        
           

        

        
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    4.1 Corporate
      Status.
      Borrower, each Guarantor and each other Subsidiary is a duly organized or formed
      and validly existing corporation, partnership or limited liability company,
      as
      the case may be, and in good standing or in full force and effect under the
      laws
      of its jurisdiction of organization; has powers and authority to transact the
      business in which it is engaged; is duly licensed or qualified and in good
      standing in each jurisdiction in which the conduct of such business requires
      such licensing or such qualification except where the failure to do so has
      not
      had or will not have a Material Adverse Effect; and has all necessary power
      and
      authority to enter into this Agreement and to execute, deliver and perform
      this
      Agreement, the Notes, the other Loan Documents and any other document executed
      in connection with this Agreement to which it is a party, all of which have
      been
      duly authorized by all proper and necessary entity and shareholder action.
      Schedule 4.1 hereto lists, as of the Closing Date, each Subsidiary and the
      direct and indirect ownership interests of the Borrower therein.

     

    4.2 Valid
      and Binding Obligation.
      This
      Agreement, the Notes, the Loan Documents, and any other document executed in
      connection herewith to which Borrower, any Guarantor or other Subsidiary is
      a
      party, will constitute the legal, valid and binding obligations of the Borrower,
      such Guarantor or other Subsidiary a party thereto, enforceable in accordance
      with their respective terms, except as enforceability (i) may be limited by
      state, provincial or federal bankruptcy, insolvency, reorganization, moratorium
      or other similar laws affecting the rights of creditors generally and
      (ii) may be subject to equity principles in the event equitable remedies
      are sought.

     

    4.3 No
      Pending Litigation.
      Except
      as set forth on Schedule 4.3 of this Agreement, there are not any actions,
      suits, proceedings (whether or not purportedly on behalf of Borrower, any
      Guarantor or any other Subsidiary) or investigations pending or, to the
      knowledge of Borrower, such Guarantor or any other Subsidiary, threatened
      against Borrower, such Guarantor or any Subsidiary or any basis therefore,
      which, in any case or in the aggregate, have had or will have a Material Adverse
      Effect, or which question the validity of this Agreement, the Notes, any other
      Loan Documents, or any other documents required by this Agreement, or any action
      taken or to be taken pursuant to any of the foregoing.

     

    4.4 No
      Consent or Filing.
      No
      consent, license, approval or authorization of, or registration, declaration
      or
      filing with, any court, Governmental Authority or other Person or entity is
      required in connection with the valid execution, delivery or performance of
      this
      Agreement, the Notes, any other Loan Documents, or any other documents required
      by this Agreement to which Borrower or any Subsidiary is a party, or in
      connection with any of the transactions contemplated thereby other than the
      filing of financing statements and the recording of mortgages or deeds of trust
      on any Collateral which filings and recordings were made prior to the Closing
      Date.

    

    
      
        
           

        

        
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    4.5 No
      Violations.
      The
      execution and delivery of, and to the best of Borrower’s knowledge, the
      performance of, the Loan Documents, will not violate any term of its certificate
      of incorporation, by-laws, or of any mortgage, borrowing agreement or other
      material instrument or agreement pertaining to Indebtedness for borrowed money,
      the violation of which has had or will have a Material Adverse Effect, and
      will
      not result in the creation of any Lien upon any properties or assets except
      in
      favor of Administrative Agent and the Lenders, except for such Lien that has
      not
      had or will not have a Material Adverse Effect. The execution, delivery, and
      to
      the best of Borrower’s knowledge, the performance of the other Loan Documents to
      which each Guarantor or Subsidiary is a party will not violate any term of
      its
      certificate of incorporation, partnership, articles of association, operating
      agreement or by-laws, or of any mortgage, borrowing agreement or other material
      instrument or agreement pertaining to Indebtedness for borrowed money, the
      violation of which has had or will have a Material Adverse Effect. To the best
      of Borrower’s knowledge, neither Borrower, any Guarantor nor any Subsidiary is
      in violation of any term of any other indenture, instrument or agreement to
      which it is a party or by which it may be bound, the violation of which has
      had
      or will have a Material Adverse Effect. Neither Borrower, any Guarantor nor
      any
      Subsidiary is in violation of any order, writ, judgment, injunction or decree
      of
      any court of competent jurisdiction or, of any statute, rule or regulation
      of
      any competent governmental authority, the violation of which has had or will
      have a Material Adverse Effect.

     

    4.6 Financial
      Statements.
      Borrower has furnished to the Administrative Agent and the Lenders Borrower’s
      quarterly report on Form 10-Q dated August 10, 2006 as filed with the
      SEC (“Form 10-Q”) showing the financial condition of Borrower as of such date,
      which document presents fairly the financial position of Borrower and its
      Subsidiaries as of such date and the results of its operations and changes
      in
      its financial position for such period then ended and has been prepared in
      conformity with GAAP applied on a basis consistent with that of similar periods
      for preceding years.

     

    4.7 No
      Material Adverse Change.
      Since
      July 1, 2006, there has been no change in the financial or other condition,
      business affairs or prospects of Borrower and Borrower’s Subsidiaries taken as a
      whole, or their properties and assets considered as an entirety, except for
      changes none of which, individually or in the aggregate, has had or will have,
      a
      Material Adverse Effect.

     

    4.8 Tax
      Returns and Payments.
      The
      Borrower and its Subsidiaries have filed all federal income tax returns. The
      Borrower and its Subsidiaries have filed all other tax returns, domestic and
      foreign, required to be filed by it and has paid all taxes and assessments
      payable by it that have become due, other than those not yet delinquent and
      except for those contested in good faith and except where the failure to so
      file
      has not had or will not have a Material Adverse Effect. The Borrower and its
      Subsidiaries have

    

    
      
        
           

        

        
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    established
      on its books such charges, accruals and reserves in respect of taxes,
      assessments, fees and other governmental charges for all fiscal periods as
      are
      required by GAAP. Neither the Borrower nor any Subsidiary knows of any proposed
      assessment for additional federal, foreign or state taxes for any period, or
      of
      any basis therefor, which, individually or in the aggregate, taking into account
      such charges, accruals and reserves in respect thereof as the Borrower and
      any
      Subsidiary has made, has had or will have a Material Adverse
      Effect.

     

    4.9 Title
      to Properties,
      etc.
      The
      Borrower and its Subsidiaries have good and marketable title, in the case of
      real property, and good title (or valid leaseholds, in the case of any leased
      property), in the case of all other property, to all of its properties and
      assets free and clear of Liens other than Permitted Encumbrances. The interests
      of the Borrower and any Subsidiary in the properties reflected in the most
      recent balance sheet referred to in Section 4.7, taken as a whole, were
      sufficient, in the judgment of the Borrower, as of the date of such balance
      sheet for purposes of the ownership and operation of the businesses conducted
      by
      the Borrower and any Subsidiary.

     

    4.10 Lawful
      Operations, etc.
      The
      Borrower and its Subsidiaries: (i) hold all necessary foreign, federal,
      state, local and other governmental licenses, registrations, certifications,
      permits and authorizations necessary to conduct its business, except to the
      extent the failure to so hold has not and will not have a Material Adverse
      Effect; and (ii) are in full compliance with all requirements imposed by
      law, regulation or rule, whether foreign, federal, state or local, that are
      applicable to it, its operations, or its properties and assets, including,
      without limitation, applicable requirements of Environmental Laws, except for
      any failure to obtain and maintain in effect, or noncompliance that,
      individually or in the aggregate, has had or will have a Material Adverse
      Effect.

     

    
      
         

      

      
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    4.11 Environmental
      Matters.(a)
      The
      Borrower and its Subsidiaries are in compliance with all Environmental Laws,
      except to the extent that any such failure to comply (together with any
      resulting penalties, fines or forfeitures) have not had or will not have
      a
      Material Adverse Effect. All licenses, permits, registrations or approvals
      required for the conduct of the business of the Borrower and any Subsidiary
      under any Environmental Law have been secured and the Borrower and its
      Subsidiaries are in substantial compliance therewith, except for such licenses,
      permits, registrations or approvals the failure to secure or to comply therewith
      has not had or will not have a Material Adverse Effect. Neither the Borrower
      nor
      any Subsidiary has received written notice, or otherwise knows, that it is
      in
      any respect in noncompliance with, breach of or default under any applicable
      writ, order judgment, injunction, or decree to which the Borrower or such
      Subsidiary is a party or that would affect the ability of the Borrower or such
      Subsidiary to operate any real property and no event has occurred and is
      continuing that, with the passage of time or the giving of notice or both,
      would
      constitute noncompliance, breach of or default thereunder, except in each such
      case, such noncompliance, breaches or defaults, in the aggregate, have not
      had
      or will not have a Material Adverse Effect. There are no claims under any
      Environmental Laws (“Environmental Claim”) pending or to the knowledge of
      Borrower, threatened which have had or will have a Material Adverse Effect.
      There are no facts, circumstances, conditions or occurrences on any real
      property now or at any time owned, leased or operated by the Borrower or any
      Subsidiary or on any property adjacent to any such real property, that are
      known
      by the Borrower or as to which the Borrower or any such Subsidiary has received
      written notice, that could reasonably be expected: (i) to form the basis of
      any Environmental Claim against the Borrower or any Subsidiary or any real
      property of the Borrower or any Subsidiary; or (ii) to cause such real
      property to be subject to any restrictions on the ownership, occupancy, use
      or
      transferability of such real property under any Environmental Law, except in
      each such case, such Environmental Claims or restrictions that individually
      or
      in the aggregate have not had and will not have a Material Adverse
      Effect.

     

    (b) Hazardous
      Substances have not at any time been (i) generated, used, treated or stored
      on, or transported to and from any real property of the Borrower or any
      Subsidiary or (ii) released on any such real property, in each case where
      such occurrence or event is not in
      compliance with Environmental Laws and has had or will have a Material Adverse
      Effect.

     

    4.12 Compliance
      with ERISA.
      Compliance by the Borrower with the provisions hereof and in the incurrence
      of
      the Indebtedness under this Agreement will not involve any prohibited
      transaction within the meaning of ERISA or Section 4975 of the Code. The
      Borrower and their Subsidiaries (i) have fulfilled all obligations under
      minimum funding standards of ERISA and the Code with respect to each Pension
      Plan, (ii) have satisfied all respective contribution obligations in
      respect of each Multiemployer Plan and each Multiple Employer Plan,
      (iii) are in compliance with all other applicable provisions of ERISA and
      the Code with respect to each Pension Plan, each

    

    
      
        
           

        

        
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    Multiemployer
      Plan and each Multiple Employer Plan, except to the extent failure to comply
      has
      not had, and will not have, a Material Adverse Effect and (iv) have not
      incurred any liability under the Title IV of ERISA to the PBGC with respect
      to any Pension Plan, any Multiemployer Plan, any Multiple Employer Plan, or
      any
      trust established thereunder. No Pension Plan or trust created thereunder has
      been terminated. There has been no Reportable Event with respect to any Pension
      Plan or trust created thereunder or with respect to any Multiemployer Plan
      or
      Multiple Employer Plan, which Reportable Event will or could result in the
      termination of such Pension Plan, Multiemployer Plan or Multiple Employer Plan
      and give rise to a material liability of the Borrower or any ERISA Affiliate
      in
      respect thereof. Neither Borrower nor any ERISA Affiliate is at the date of
      this
      Agreement, or has been at any time within the two years preceding the date
      of
      this Agreement, an employer required to contribute to any Multiemployer Plan
      or
      Multiple Employer Plan, or a “contributing sponsor” (as such term is defined in
      Section 4001 of ERISA) in any Multiemployer Plan or Multiple Employer Plan.
      Neither the Borrower nor any ERISA Affiliate has any contingent liability with
      respect to any post-retirement “welfare benefit plan” (as such term is defined
      in ERISA) except as has been disclosed in accordance with GAAP in the financial
      statements delivered to the Lenders in accordance with this
      Agreement.

     

    4.13 Investment
      Company Act, etc.
      Neither
      the Borrower nor any Subsidiary is subject to regulation with respect to the
      creation or incurrence of Indebtedness under the Investment Company Act of
      1940,
      as amended, the Interstate Commerce Act, as amended, the Federal Power Act,
      as
      amended, the Energy Policy Act of 2005, as amended, or any applicable state
      public utility law.

     

    4.14 Insurance.
      The
      Borrower and its Subsidiaries maintain insurance coverage by such insurers
      and
      in such forms and amounts and against such risks as are generally consistent
      with industry standards and in each case in compliance with the terms of the
      Loan Documents.

     

    4.15 Burdensome
      Contracts; Labor Relations.
      Neither
      the Borrower nor any Subsidiary (a) is subject to any burdensome contract,
      agreement, corporate restriction, judgment, decree or order, (b) is a party
      to any labor dispute affecting any bargaining unit or other group of employees
      generally, (c) is subject to any strike, slowdown, walk out or other concerted
      interruptions of operations by employees of the Borrower or any Subsidiary,
      whether or not relating to any labor contracts, (d) is subject to any
      pending or, to the knowledge of the Borrower, threatened, unfair labor practice
      complaint, before the National Labor Relations Board, (e) is subject to any
      pending or, to the knowledge of the Borrower, threatened grievance or
      arbitration proceeding arising out of or under any collective bargaining
      agreement, (f) is subject to any significant pending or, to the knowledge
      of the Borrower, threatened strike, labor dispute, slowdown or stoppage, or
      (g) is, to the knowledge of the Borrower, involved or subject to any union
      representation organizing or certification matter with respect to the employees
      of the Borrower or any Subsidiary, except (with respect to any
      matter

    

    
      
        
           

        

        
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    specified
      in any of the above clauses) for such matters as, individually or in the
      aggregate, which have not had or will not have a Material Adverse
      Effect.

     

    4.16 Liens.
      Once
      executed and delivered, each of the Security Documents creates, as security
      for
      the Indebtedness of the Borrower to the Lenders or the obligations for the
      Guarantors under their respective Guaranty, a valid and enforceable, and upon
      making the filings and recordings referenced in the next sentence, perfected
      Lien on all of the Collateral subject thereto from time to time, in favor of
      the
      Administrative Agent for the benefit of the Lenders, superior to and prior
      to
      the rights of all third persons and subject to no other Liens, except that
      the
      Collateral under the Security Documents may be subject to Permitted
      Encumbrances. No filings or recordings are required under U.S. Law in order
      to
      perfect the Liens created under any Security Document except for filings or
      recordings required in connection with any such Security Document that shall
      have been made, or for which satisfactory arrangements have been made, upon
      or
      prior to the execution and delivery thereof. All recording, stamp, intangible
      or
      other similar taxes required to be paid by any Person under applicable legal
      requirements or other laws applicable to the property encumbered by the Security
      Documents in connection with the execution, delivery, recordation, filing,
      registration, perfection or enforcement thereof have been paid.

     

    4.17 Defaults.
      No
      Default or Event of Default exists as of the Closing Date hereunder, nor will
      any Default or Event of Default begin to exist immediately after the execution
      and delivery hereof.

     

    4.18 Anti-Terrorism
      Law Compliance.
      Neither
      the Borrower nor any Subsidiary is subject to or in violation of any law,
      regulation, or list of any governmental agency (including, without limitation,
      the U.S. Office of Foreign Asset Control list, Executive Order No. 13224 or
      the USA Patriot Act) that prohibits or limits the conduct of business with
      or
      the receiving of funds, goods or services to or for the benefit of certain
      Persons specified therein or that prohibits or limits any Lender or any Issuing
      Bank from making any advance or extension of credit to Borrower or from
      otherwise conducting business with Borrower.

     

    4.19 Intellectual
      Property.
      Each of
      the Borrower, the Guarantors and other Subsidiaries owns, or is licensed to
      use,
      all trademarks, tradenames, service marks, copyrights, technology, know-how
      and
      process necessary for the conduct of its business as currently conducted
      (collectively, the “Intellectual Property”) except for those the failure to own
      or license which has not had or will not have a Material Adverse Effect. No
      claim has been asserted and is pending by any person challenging or questioning
      the use by the Borrower, any Guarantor or any other Subsidiaries of any such
      Intellectual Property or the validity or effectiveness of any such Intellectual
      Property, nor does Borrower, any Guarantor or any other Subsidiaries know of
      any
      valid basis for any such claim, to

    

    
      
        
           

        

        
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    the
      knowledge of the Borrower the use of such Intellectual Property by the Borrower,
      any Guarantors and any other Subsidiaries does not infringe on the rights of
      any
      Person, and, to the knowledge of the Borrower, no such Intellectual Property
      of
      the Borrower, any Guarantor and any other Subsidiaries has been infringed,
      misappropriated or diluted by any other Person except for such claims,
      infringements, misappropriation and dissolution that, in the aggregate, has
      not
      had or will not have a Material Adverse Effect.

     

    4.20 Accuracy
      of Information, etc.
      No
      statement or information contained in this Agreement, any other Loan Document,
      the Confidential Information Materials or any other certificate furnished by
      or
      on behalf of Borrower or the Guarantors to the Administrative Agent or the
      Lenders, or any of them, for use in connection with the transactions
      contemplated by this Agreement or the other Loan Documents, contained as of
      the
      date such statement, information or certificate was so furnished (or, in the
      case of the Confidential Information Materials, as of the date of this
      Agreement), any untrue statement of a material fact or omitted to state a
      material fact necessary to make the statements contained herein or therein
      not
      misleading in any material respect. The financial statements contained in the
      materials referenced above, in conformity with GAAP, require management to
      make
      estimates and assumptions that affect the reported amounts of assets and
      liabilities and disclosure of contingent liabilities at the date of the
      financial statements and the reported amounts of revenues and expenses during
      the reporting periods. In addition, the projections and pro forma financial
      information contained in the materials referenced above are not guarantees
      of
      future performance and are subject to factors, risks and uncertainties, the
      impact or occurrence of which could cause actual results to differ materially
      from the expected results described in the projections and pro forma financial
      information. Certain of those factors, risks and uncertainties are referred
      to
      in Borrower’s Form 10-Q, filed on August 10, 2006.

     

    ARTICLE
      V. AFFIRMATIVE
      COVENANTS

     

    During
      the term of this Agreement, and so long thereafter as any Indebtedness of
      Borrower to the Administrative Agent or the Lenders shall remain unpaid,
      including any Indebtedness for fees and expenses, Borrower will and shall cause
      each of its Subsidiaries to:

    

    5.1 Payments.
      Duly
      and punctually pay the principal of, interest on, and all fees, expenses and
      charges on, all Indebtedness incurred by Borrower pursuant to this Agreement
      in
      the manner set forth in this Agreement.

     

    5.2 Reporting
      Requirements.
      Furnish
      to the Administrative Agent:

    

    
      
        
           

        

        
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    (a) Annual
      Financial Statements. As soon as available and in any event within
      ninety (90) days after the end of each fiscal year of Borrower, (i) audited
      Consolidated financial statements of Borrower and Borrower’s Subsidiaries as of
      the end of such year, fairly presenting Borrower’s financial position, which
      statements shall consist of a balance sheet and related statements of income,
      stockholders’ equity, and cash flow covering the period of Borrower’s
      immediately preceding fiscal year, in each case setting forth comparative
      figures for the preceding fiscal year, all in reasonable detail and accompanied
      by the opinion with respect to such Consolidated financial statements of
      independent certified public accountants of recognized national standing
      selected by Borrower and satisfactory to the Administrative Agent which opinion
      shall be unqualified or shall be qualified only as to consistency and shall
      (A) state that such accountants audited such financial statements in
      accordance with generally accepted auditing standards, that such accountants
      believe that such audit provides a reasonable basis for their opinion, and
      that
      in their opinion such Consolidated financial statements present fairly, in
      all
      material respects, the Consolidated financial position of Borrower and its
      Subsidiaries as of the end of such fiscal year and the consolidated results
      of
      operations and cash
      flows
      for such fiscal year in conformity with GAAP, or (B) contain such
      statements as are customarily included in unqualified (or qualified only as
      to
      consistency) reports of independent accountants in conformity with the
      recommendations and requirements of the American Institute of Certified Public
      Accountants (or any successor organization), and (ii) internally prepared
      Consolidating financial statements of Borrower and Borrower’s Subsidiaries as of
      the end of such year which statements shall consist of a balance sheet and
      related statements of income covering the period of Borrower’s immediately
      preceding fiscal year, all in reasonable detail.

     

    (b) Quarterly
      Financial Statements.
      As soon
      as available and in any event within forty-five (45) days after the close of
      the
      first three fiscal quarters in each fiscal year of Borrower, the unaudited
      Consolidated balance sheets of Borrower and Borrower’s Consolidated Subsidiaries
      as at the end of such quarterly period and the related unaudited Consolidated
      statements of income and of cash flows for such quarterly period and/or for
      the
      fiscal year to date, and setting forth, in the case of such unaudited
      Consolidated statements of income, comparative figures for the related periods
      in the prior fiscal year, to be certified by a Responsible Officer of Borrower,
      on behalf of Borrower, to be in accordance with the records of Borrower and
      each
      Subsidiary and to present fairly taken as a whole the results of the operations
      of Borrower and all Subsidiaries for, as applicable, such fiscal quarter, and
      the financial position of Borrower and all Subsidiaries as of the end of such
      fiscal quarter, subject to changes
      resulting from normal year-end audit adjustments.

     

    (c) Officer’s
      Compliance Certificates.
      At the
      time of the delivery of the financial statements provided for in
      Sections 5.2(a) and (b), a certificate (“Compliance Certificate”), in
      substantially the form attached hereto as Exhibit E, on behalf of Borrower
      by a Responsible Officer to the effect that (i) no Default or Event of
      Default exists or, if any Default or Event of Default does exist, specifying
      the
      nature and extent thereof and the actions the Borrower propose to take with
      respect thereto, and (ii) the
      representations and warranties of the Borrower are true and correct in all
      material respects, except to the extent that any relate to an earlier specified
      date, in which case, such representations shall be true and correct in all
      material

    

    
      
        
           

        

        
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    respects
      as the date made, which certificate shall set forth the calculations required
      to
      establish compliance with the provisions of Sections 6.1, 6.2, 6.3 and
      6.4.

     

    (d) Annual
      Budget.
      Within
      forty-five (45) days after the start of each fiscal year of Borrower, a
      Consolidated budget for Borrower and its Subsidiaries for such fiscal year
      consisting of a balance sheet and income statement, all in reasonable
      detail.

     

    (e) Notices.
      Promptly, and in any event within three (3) Business Days after Borrower or
      any
      Subsidiary obtains knowledge thereof, notice of:

     

    (i) the
      occurrence of any event that constitutes a Default or Event of Default, which
      notice shall specify the nature thereof, the period of existence thereof and
      what action the Borrower proposes to take with respect thereto; or

     

    (ii) the
      commencement of, or any other material development concerning any litigation
      or
      governmental or regulatory proceeding pending against the Borrower or any
      Subsidiary or the occurrence of any other event, if the same has had or will
      have a Material Adverse Effect.

     

    (f) ERISA.
      Promptly, and in any event within ten (10) Business Days after Borrower or
      any
      Subsidiary knows of the occurrence of any of the following, the Borrower
      will deliver to each of the Lenders a certificate by a Responsible Officer
      setting forth the full details as to such occurrence and the action, if any,
      that Borrower or such Subsidiary is required or proposes to take, together
      with
      any notices required or proposed to be given to or filed with or by Borrower
      or
      the Subsidiary, the PBGC, a Pension Plan participant or the Pension Plan
      administrator with respect thereto (i) the occurrence of a Reportable Event
      with respect to any Pension Plan; (ii) the institution of any steps by
      Borrower, any Subsidiary, the PBGC or any other Person to terminate any Pension
      Plan; (iii) the institution of any steps by Borrower or any Subsidiary to
      withdraw from any Pension Plan; (iv) the institution of any steps by
      Borrower or any Subsidiary to withdraw from any Multiemployer Plan or Multiple
      Employer Plan, if such withdrawal could result in withdrawal liability (as
      described in Part 1 of Subtitle E of Title IV of ERISA) in excess
      of $25,000,000; (v) the occurrence of a non-exempt “prohibited transaction”
within the meaning of Section 406 of ERISA in connection with any Pension
      Plan; (vi) a determination that a Pension Plan has an unfunded current
      liability exceeding $25,000,000; or (vii) the taking of any material action
      by, or the threatening of the taking of any material action by, the Internal
      Revenue Service, the Department of Labor or the PBGC with respect to any of
      the
      foregoing.

     

    (g) Environmental
      Matters.
      Promptly upon, and in any event within ten (10) Business Days after, an officer
      of Borrower or any Subsidiary obtaining knowledge thereof, notice
      of
      one or more of the following environmental matters to the extent any of the
      following has had or will have a Material Adverse Effect: (i) any pending
      or threatened Environmental Claim against the Borrower or any Subsidiary or
      any
      real property owned or operated by the Borrower or any Subsidiary; (ii) any
      condition or occurrence on or arising from any real property owned or operated
      by the Borrower or any Subsidiary that (A) results in

    

    
      
        
           

        

        
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    noncompliance
      by the Borrower or any Subsidiary with any applicable Environmental Law or
      (B) would reasonably be expected to form the basis of an Environmental
      Claim against the Borrower or any Subsidiary or any such real property;
      (iii) any condition or occurrence on any real property owned, leased or
      operated by the Borrower or any Subsidiary that could reasonably be expected
      to
      cause such real property to be subject to any restrictions on the ownership,
      occupancy, use or transferability by the Borrower or any Subsidiary of such
      real
      property under any Environmental Law; and (iv) the taking of any removal or
      remedial action in response to the actual or alleged presence of any Hazardous
      Material on any real property owned, leased or operated by the Borrower or
      any
      Subsidiary as required by any Environmental Law or any governmental or other
      administrative agency. All such notices shall describe in reasonable detail
      the
      nature of the Environmental Claim, Borrower’s or any Subsidiary’s response
      thereto and the potential exposure in Dollars of the Borrower and any Subsidiary
      with respect thereto.

     

    (h) SEC
      Reports and Registration Statements.
      Promptly after transmission thereof or other filing with the SEC, copies of
      all
      registration statements and all annual or quarterly reports that Borrower or
      any
      of its Subsidiaries is required to file with the SEC on Form 10-K or 10-Q
      or 8--K (or any successor forms).

     

    (i) Annual,
      Quarterly and Other Reports.
      Promptly after transmission thereof to its stockholders, copies of each annual,
      quarterly and other reports and all proxy statements that Borrower furnishes
      to
      its stockholders generally.

     

    (j) Other
      Notices.
      Promptly after the transmission or receipt thereof, as applicable, copies of
      all
      material notices received or sent by Borrower or any Subsidiary to or from
      a
      holder of any Material Indebtedness or any trustee with respect
      thereto.

     

    (k) Other
      Information.
      Promptly, but in any event within ten (10) days after a request therefore,
      such
      other information or documents (financial or otherwise) related to the Borrower
      or any Subsidiary as the Administrative Agent or any Lender may reasonably
      request from time to time, subject to any applicable Law that restricts, or
      any
      applicable agreement with any Person other than all Subsidiaries and Affiliates
      that in good faith restricts, the disclosure of such information.

     

    5.3 Books,
      Records and Inspections.
      Upon
      the reasonable prior request of the Administrative Agent or the Required Lenders
      and subject to (i) any applicable Law that restricts, or any applicable
      agreement with any Person other than all Subsidiaries and Affiliates that in
      good faith restricts, the disclosure of any information obtained pursuant to
      such request and (ii) the maintenance of the confidentiality of any such
      information by each Lender, promptly permit each officer, employee, accountant,
      attorney and other agent of each Lender to, without unreasonably disrupting
      the
      business or operations of the Borrower or such Domestic Subsidiary,
      (A) visit and inspect each of the premises of the Borrower and each
      Domestic Subsidiary, (B) subject to, if reasonably requested by the
      Borrower, the execution and delivery of a confidentiality agreement similar
      to
      those

    

    
      
        
           

        

        
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    generally
      used in significant corporate acquisitions and mergers, examine, audit, copy
      and
      extract each record of the Borrower and each Domestic Subsidiary and (C) discuss
      the business, operations, assets, affairs and condition (financial or other)
      of
      the Borrower and each Domestic Subsidiary with each responsible officer of
      the
      Borrower and each Domestic Subsidiary and each independent accountant of the
      Borrower and each Domestic Subsidiary.

     

    5.4 Insurance.
      (a) The
      Borrower will, and will cause each Subsidiary to (i) maintain insurance
      coverage by such insurers and in such forms and amounts and against such risks
      as are generally consistent with industry standards, and (ii) forthwith
      upon the Administrative Agent’s or any Lender’s written request, furnish to the
      Administrative Agent or such Lender such information about such insurance as
      the
      Administrative Agent or such Lender may from time to time reasonably request,
      which information shall be prepared in form and detail satisfactory to the
      Administrative Agent or such Lender and certified by a Responsible
      Officer.

     

    (b) The
      Borrower will, and will cause each of the Guarantors to, at all times keep
      their
      respective property that is subject to the Lien of any of the Loan Documents
      insured in favor of the Administrative Agent, and all policies or certificates
      (or certified copies thereof) with respect to each insurance (and any other
      insurance maintained by the Borrower or any such Subsidiary shall be endorsed
      to
      the Administrative Agent’s reasonable satisfaction for the benefit of the
      Administrative Agent (including, without limitation, by naming the
      Administrative Agent as a lender’s loss payee and mortgagee (with respect to
      Collateral) or, to the extent permitted by applicable law, as an additional
      insured as its interests may appear). The Borrower shall deliver to the
      Administrative Agent contemporaneously with the expiration or replacement of
      any
      policy of insurance required to be maintained by this Agreement a certificate
      as
      to the new or renewal policy. The Borrower shall advise the Administrative
      Agent
      promptly upon the cancellation, material reduction or material amendment of
      any
      policy. If requested to do so by the Administrative Agent at any time, the
      Borrower shall deliver copies of all insurance policies maintained by the
      Borrower as required by this Agreement. The Administrative Agent shall deliver
      copies of any certificates of insurance to a Lender upon such Lender’s
      reasonable request.

     

    (c) If
      the
      Borrower or any Guarantor shall fail to maintain any insurance in accordance
      with this Section, or if Borrower or any Guarantor shall fail to so endorse
      and
      deliver or deposit all endorsements or certificates with respect thereto, the
      Administrative Agent shall have the right (but shall be under no obligation),
      upon prior written notice to the Borrower to procure such insurance and the
      Borrower agree to reimburse the Administrative Agent on demand for all costs
      and
      expenses of procuring such insurance.

     

    5.5 Payment
      of Taxes and Claims.
      The
      Borrower will pay and discharge, and will cause each Subsidiary to pay and
      discharge, all taxes, assessments and governmental charges or levies imposed
      upon it or upon its income or profits, or upon any properties belonging to
      it,
      prior to the date on which penalties attach thereto,

    

    
      
        
           

        

        
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    and
      all
      lawful claims that, if unpaid, will become a Lien or charge upon any properties
      of the Borrower or any Subsidiary; provided,
      however,
      that
      neither the Borrower nor any Subsidiary shall be required to pay any such tax,
      assessment, charge, levy or claim that is being contested in good faith and
      by
      proper proceedings if it has maintained adequate reserves with respect thereto
      in accordance with GAAP. Without limiting the generality of the foregoing,
      the
      Borrower will, and will cause each Subsidiary to, pay in full all of its wage
      obligations to its employees in accordance with the Fair Labor Standards Act
      (29 U.S.C. Sections 206-207) and any comparable provisions of
      applicable law, except where the failure to do so has not had and will not
      have
      a Material Adverse Effect.

     

    5.6 Corporate
      Franchises.
      The
      Borrower will do, and will cause each Subsidiary to do, or cause to be done,
      all
      things necessary to preserve and keep in full force and effect its corporate,
      partnership or limited liability company existence, rights and authority;
provided,
      however,
      that
      nothing in this Section shall be deemed to prohibit any transaction permitted
      by
      Section 7.8.

     

    5.7 Good
      Repair.
      The
      Borrower will, and will cause each Subsidiary to, ensure that its material
      properties and equipment are used or useful in its business in whomsoever’s
      possession they may be, are kept in good repair, working order and condition,
      normal wear and tear expected, and that from time to time there are made in
      such
      properties and equipment all needful and proper repairs, renewals, replacements,
      extensions, additions, betterments and improvements thereto, to the extent
      and
      in the manner customary for companies in similar businesses.

     

    5.8 Compliance
      with Law.
      The
      Borrower will, and will cause each Subsidiary to, comply with all applicable
      statutes, regulations and orders of, and all applicable restrictions imposed
      by,
      all Governmental Authorities in respect of the conduct of its business and
      the
      ownership of its property, other than those the noncompliance with which has
      not
      had or will not have a Material Adverse Effect.

     

    5.9 Compliance
      with Environmental Laws.
      Without
      limitation of the covenants contained in Section 5.8:

     

    (a) The
      Borrower will comply, and will cause each of its Subsidiaries to comply, with
      all Environmental Laws applicable to the ownership, lease or use of all real
      property now or hereafter owned, leased or operated by the Borrower or any
      Subsidiary, and will promptly pay or cause to be paid all costs and expenses
      incurred in connection with such compliance, except to the extent that such
      compliance with Environmental Laws is being contested in good faith and by
      appropriate proceedings and for which adequate reserves have been established
      to
      the extent required by GAAP and except to the extent that failure to comply
      with
      such Environmental Laws, has not had, and will not have a Material Adverse
      Effect.

    

    
      
        
           

        

        
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    (b) The
      Borrower will keep or cause to be kept, and will cause each Subsidiary to keep
      or cause to be kept, all such real property free and clear of any Liens imposed
      pursuant to such Environmental Laws other than Permitted Encumbrances or such
      Liens that will not and have not had a Material Adverse Effect.

     

    (c) Neither
      the Borrower nor any Subsidiary will generate, use, treat, store, release or
      dispose of, or permit the generation, use, treatment, storage, release or
      disposal of, Hazardous Materials on any real property now or hereafter owned,
      leased or operated by the Borrower or any Subsidiary or transport or permit
      the
      transportation of Hazardous Substances to or from any such real property other
      than in compliance with applicable Environmental Laws, except for such
      noncompliance as has not had and will not have a Material Adverse
      Effect.

     

    (d) If
      required to do so under any applicable order of any Governmental Authority,
      the
      Borrower will undertake, and cause each Subsidiary to undertake, any clean
      up,
      removal, remedial or other action necessary to remove and clean up any Hazardous
      Substances from any real property owned, leased or operated by the Borrower
      or
      any Subsidiary in accordance with, in all material respects, such orders of
      all
      Governmental Authorities, except to the extent that such Borrower or such
      Subsidiary is contesting such order in good faith and by appropriate proceedings
      and for which adequate reserves have been established to the extent required
      by
      GAAP.

     

    (e) At
      the
      written request of the Administrative Agent or the Required Lenders, which
      request shall specify in reasonable detail the basis therefor, at any time
      and
      from time to time after the Lenders receive notice under Section 5.1(f) for
      any
      claimed violation of any Environmental Law involving potential expenditures
      by
      Borrower or any Subsidiary in excess of $25,000,000 in the aggregate for any
      real property, the Borrower will provide, at Borrower’s sole cost and expense,
      an environmental site assessment report concerning any such real property now
      or
      hereafter owned, leased or operated by Borrower or any Subsidiary, prepared
      by
      an environmental consulting firm reasonably acceptable to the Administrative
      Agent, indicating the presence or absence of Hazardous Substances and the
      potential cost of any removal or a remedial action in connection with any
      Hazardous Substances on such real property. If the Borrower fails to provide
      the
      same within ninety (90) days after such request was made, the Administrative
      Agent may order the same, and Borrower shall grant and hereby grants, to the
      Administrative Agent and the Lenders and their agents, access to such real
      property and specifically grants the Administrative Agent and the Lenders and
      their agents, access to such real property and specifically grants the
      Administrative Agent and the Lenders and irrevocable non-exclusive license,
      subject to the rights of tenants, to undertake such assessment, all at the
      Borrower’s expense.

     

    5.10 Certain
      Subsidiaries to Become Guarantors.
      In the
      event that at any time after the Closing Date Borrower creates, holds, acquires
      or at any time has any Subsidiary (other than Non-Material Subsidiaries and
      Foreign Subsidiaries as to which Section 5.11(b) applies) that is not a
      Guarantor, Borrower will immediately, but in any event within five (5) Business
      Days, notify the Administrative Agent in writing of such event,

    

    
      
        
           

        

        
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    identifying
      the Subsidiary in question and referring specifically to the rights of the
      Administrative Agent and the Lenders under this Section. Borrower will, within
      fifteen (15) days following request therefor from the Administrative Agent
      (who
      may give such request on its own initiative or upon request by the Required
      Lenders), cause such Subsidiary to deliver to the Administrative Agent, in
      sufficient quantities for the Lenders, (i) a Guaranty duly executed by such
      Subsidiary, and (ii) if such Subsidiary is a corporation, resolutions of the
      Board of Directors of such Subsidiary, certified by the Secretary or an
      Assistant Secretary of such Subsidiary as duly adopted and in full force and
      effect, authorizing the execution and delivery of such Guaranty, or if such
      Subsidiary is not a corporation, such other evidence of the authority of such
      Subsidiary to execute such a Guaranty as the Administrative Agent may reasonably
      request. If any Subsidiary is required to provide a Security Agreement, whether
      pursuant to Section 5.11(a) or otherwise, such Subsidiary shall also be
      subject to the requirements of this Section 5.10.

     

    5.11 Additional
      Security; Further Assurances.

     

    (a) Additional
      Security.
      Subject
      to subpart (b) below, if Borrower or any Guarantor acquires, owns or holds
      any
      personal property that is not at the time included in the Collateral, the
      Borrower will promptly notify the Administrative Agent in writing of such event,
      identifying the property or interests in question and referring specifically
      to
      the rights of the Administrative Agent and the Lenders under this Section,
      and
      Borrower will cause such Subsidiary to, within 30 days following a request
      by
      the Administrative Agent (or such longer period as the Administrative Agent
      shall deem reasonable under the circumstances), grant to the Administrative
      Agent for the benefit of the Lenders a Lien on such personal property pursuant
      to the terms of such security agreements, assignments or other documents as
      the
      Administrative Agent deems appropriate (collectively, the “Additional Security
      Document”). Furthermore, the Borrower shall cause to be delivered to the
      Administrative Agent such resolutions and other related documents as may be
      reasonably requested by the Administrative Agent in connection with the
      execution, delivery and recording of any such Additional Security Document,
      all
      of which documents shall be in form and substance reasonably satisfactory the
      Administrative Agent.

     

    (b) Foreign
      Subsidiaries.
      Notwithstanding anything in subpart (a) above or elsewhere in this Agreement
      to
      the contrary, Borrower shall not be required to pledge (or cause to be pledged)
      more than 65% of the Equity Interests in any first tier Foreign Subsidiary
      of
      Borrower, or any of the equity interests in any other Foreign Subsidiary, or
      to
      cause any Foreign Subsidiary to become a Guarantor or execute and deliver a
      Security Agreement, if to do so would subject Borrower to liability for any
      potential additional United States income taxes by virtue of Section 956 of
      the
      Code, determined without regard to the availability of foreign tax
      credits.

     

    (c) Further
      Assurances.
      Borrower will, and will cause each Subsidiary, at the expense of Borrower,
      to
      make, execute, endorse, acknowledge, file and/or deliver to the Administrative
      Agent from time to time such conveyances, financing statements,

     

    

    
      
        
           

        

        
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    transfer
      endorsements, powers of attorney, certificates, and other assurances or
      instruments and take such further steps relating to any Collateral covered
      by
      any of the Loan Documents as the Administrative Agent may reasonably require.
      If
      at any time the Administrative Agent determines, based on applicable law, that
      all applicable taxes (including, without limitation, mortgage recording taxes
      or
      similar charges) were not paid in connection with the recordation of any
      mortgage or deed of trust, the Borrower shall promptly pay the same upon
      demand.

     

    5.12 Accounting;
      Reserves; Tax Returns.
      Cause
      each of the Borrower and any Subsidiary at all times to (i) maintain a
      system of accounting established and administered in material accordance with
      GAAP, and (ii) file each tax return it is required to file except where the
      failure to so file will not and has not had a Material Adverse
      Effect.

     

    5.13 Liens
      and Encumbrances.
      Promptly upon acquiring knowledge or reason to know in the ordinary course
      of
      its business that any asset of Borrower or any Subsidiary has or may become
      subject to any Lien other than Permitted Encumbrances, provide to each Lender
      a
      certificate executed by a Responsible Officer of Borrower and specifying the
      nature of such Lien and what action such Borrower has taken, is taking or
      proposes to take with respect thereto.

     

    5.14 Defaults
      and Material Adverse Effects.
      Promptly upon acquiring knowledge or reason to know in the ordinary course
      of
      its business of the occurrence or existence of (i) any Event of Default or
      Default or (ii) any event or condition that has had or will have any
      Material Adverse Effect, provide to each Lender a certificate executed by a
      Responsible Officer and specifying the nature of such Event of Default, Default,
      event or condition, the date of occurrence or period of existence thereof and
      what action the Borrower has taken, is taking or proposes to take with respect
      thereto.

     

    5.15 Further
      Actions.
      Promptly upon the request of the Administrative Agent, execute and deliver
      or
      cause to be executed and delivered each writing, and take or cause to be taken
      each other action, that the Administrative Agent shall deem necessary or
      desirable at the sole option of the Administrative Agent to perfect or otherwise
      preserve or protect the priority of any security interest, mortgage or other
      lien or encumbrance imposed or created pursuant to any Loan Document or to
      correct any error in any Loan Document.

     

    ARTICLE
      VI. FINANCIAL
      COVENANTS

     

    During
      the term of this Agreement, and so long thereafter as any of the Indebtedness
      of
      the Borrower to the Administrative Agent or the Lenders, including any
      Indebtedness for fees and expenses, shall remain unpaid, Borrower
      will:

     

    
      
         

      

      
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    6.1 Consolidated
      Net Worth.
      Assure
      that at as of the end of each fiscal quarter of Borrower ending after the date
      of this Agreement, the Consolidated Net Worth of Borrower is not less than
      $550.0 million.

     

    6.2 Interest
      Coverage Ratio.
      Assure
      that as of the end of each fiscal quarter of Borrower ending after the date
      of
      this Agreement, the Interest Coverage Ratio is not less than 3.0 to
      1.0.

     

    6.3 Leverage
      Ratio.
      Assure
      that as of the end of each fiscal quarter of Borrower ending after the date
      of
      this Agreement, the Leverage Ratio does not exceed 3.50 to 1.0.

     

    6.4 Consolidated
      Capital Expenditures.
      Assure
      that Consolidated Capital Expenditures of Borrower do not exceed $85,000,000
      in
      Borrower’s 2007 and 2008 fiscal years or exceed $90,000,000 in any one fiscal
      year thereafter.

     

    ARTICLE
      VII. NEGATIVE
      COVENANTS

     

    During
      the term of this Agreement and so long thereafter as any of the Indebtedness
      of
      the Borrower to the Administrative Agent or the Lenders, including any
      Indebtedness for fees and expenses, shall remain unpaid:

    

    7.1 Indebtedness.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, contract,
      create, incur, assume or suffer to exist any Indebtedness of the Borrower or
      any
      Subsidiary, except for the following permitted indebtedness (collectively,
      the
“Permitted Indebtedness”):

    

    (a) Loan
      Documents.
      Indebtedness incurred under this Agreement and the other Loan Documents and
      under Hedge Agreements;

     

    (b) Existing
      Indebtedness.
      Indebtedness of the Borrower and any Subsidiary including Foreign Subsidiaries
      listed on Schedule 7.1 to this Agreement and existing

    

    
      
        
           

        

        
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    on
      the
      Closing Date, and any refinancing, extension, renewal or refunding of any such
      Indebtedness not involving an increase in the principal amount
      thereof;

     

    (c) Intercompany
      Advances.
      Advances or loans made in the ordinary course of business (including, without
      limitation, in connection with a Permitted Acquisition) among the Borrower
      and
      any Subsidiary or among any Subsidiaries.

     

    (d) Subordinated
      Indebtedness.
      The
      existing unsecured Indebtedness of Borrower in connection with the notes
      (including any replacement or exchange notes) issued pursuant to the
      Subordinated Indenture, so long as payment of all of such Indebtedness shall
      be
      subordinated at all times to payment of the Indebtedness of the Borrower under
      this Agreement and the other Loan Documents.

     

    (e) Other
      Indebtedness.
      Other
      secured or unsecured Indebtedness of the Borrower to the extent not permitted
      by
      any of the foregoing clauses, provided that (i) no Default or Event of
      Default shall then exist or immediately after incurring any of such Indebtedness
      will exist, (ii) the Borrower and any Subsidiary shall be in compliance
      with the financial covenants set forth in Sections 6.1, 6.2 and 6.3 both
      immediately before and after giving pro forma effect to the incurrence of such
      Indebtedness, and (iii) the aggregate principal amount of all such other
      Indebtedness outstanding at any time shall not exceed $100,000,000.

     

    7.2 Encumbrances.
      The
      Borrower will not, and will not permit any Subsidiary to, create, incur, assume
      or suffer to exist any Lien upon or with respect to any property or assets
      of
      any kind (real or personal, tangible or intangible) of any of the Borrower
      or
      any such Subsidiary whether now owned or hereafter acquired, or sell any such
      property or assets subject to an understanding or agreement, contingent or
      otherwise, to repurchase such property or assets (including sales of accounts
      receivable or notes with or without recourse to Borrower or any Subsidiary,
      other than for purposes of collection or delinquent accounts in the ordinary
      course of business) or assign any right to receive income, or file or permit
      the
      filing of any financing statement under the Uniform Commercial Code or any
      other
      similar notice of Lien under any similar recording or notice statute, except
      that the foregoing restrictions shall not apply to the following permitted
      encumbrances (collectively, the “Permitted Encumbrances”):

    

    (a) Existing
      Liens, etc.
      Liens
      granted to the Administrative Agent for the benefit of the Lenders pursuant
      to
      any Security Document and liens (i) in existence on the Closing Date that
      are listed on Schedule 7.2, or (ii) arising out of the refinancing,
      extension, renewal or refunding of any Indebtedness secured by any such Liens,
      provided that
      the
      principal amount of the Indebtedness secured by such Liens is not increased
      and
      such Indebtedness is not secured by any additional assets; and

     

    (b) Permitted
      Indebtedness Liens.
      Any
      lien or liens hereafter existing on the assets of the Borrower or any Subsidiary
      to secure Permitted Indebtedness.

    

    
      
        
           

        

        
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    (c) Pledges
      or Deposits.
      Any
      pledge or deposit made by the Borrower or any Subsidiary in the ordinary course
      of business in connection with any workers’ compensation, unemployment
      insurance, social security or similar law or to secure the payment of any
      Indebtedness, liability or obligation in connection with any letter of credit,
      bid, tender, trade or government contract, lease, surety, appeal or performance
      bond or law, or any similar Indebtedness or obligation not incurred in
      connection with the borrowing of any money or the deferral of the payment of
      the
      purchase price or lease of any capital asset.

     

    (d) Statutory
      Liens.
      Any
      statutory lien (i) in favor of a Governmental Authority for any amount paid
      to the Borrower or to any Subsidiary as a progress payment pursuant to a
      government contract; (ii) securing the payment of any tax, fee, charge,
      fine or penalty imposed by any Governmental Authority upon Borrower, any
      Subsidiary or any of their assets, income and franchises but not yet required
      to
      be paid by Section 5.5 of this Agreement; or (iii) securing the
      payment of any claim or demand of any materialman, mechanic, carrier,
      warehouseman, garageman or landlord against Borrower or any Subsidiary but
      not
      yet required to be paid by Section 5.5 of this Agreement.

     

    (e) Other
      Liens.
      Any
      reservation, exception, encroachment, easement, right-of-way, covenant,
      condition, restriction, lease or similar title exception or encumbrance
      affecting the title to any real property of the Borrower or any Subsidiary
      but
      not interfering with the conduct of its business or operations.

     

    7.3 Investments
      and Guaranty Obligations.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, directly
      or
      indirectly, (i) make or commit to make any Investment or (ii) be or
      become obligated under any guaranty other than a Guaranty, except for the
      following permitted investments (collectively, the “Permitted
      Investments”):

    

    (a) Investments
      by Borrower or any Subsidiary in cash and cash equivalents including any readily
      marketable direct obligation of the United States, or with respect to a Foreign
      Subsidiary, an obligation of the foreign country in which the principal place
      of
      business of such Foreign Subsidiary is located (“Foreign Country”) maturing
      within one year after the date of acquisition thereof, any time deposit maturing
      within one year after the date of acquisition thereof and issued by any banking
      institution that is incorporated under any statute of the United States or
      any
      state thereof, or with respect to a Foreign Subsidiary incorporated under any
      statute of the Foreign Country or any political subdivision thereof, and has
      a
      combined capital and surplus of not less than $100,000,000, any demand or
      savings deposit with any such institution, any Dollar deposits in the London
      Interbank Market with such banking institution or any subsidiary of any such
      banking institution, and any commercial paper rated at least A-1 by Standard
      & Poor’s Ratings Group or P-1 by Moody’s Investor Services,
      Inc.;

    

    (b) to
      the
      extent not permitted by the foregoing, Investments existing as of the Closing
      Date and described on Schedule 7.3 hereto;

    

    
      
        
           

        

        
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    (c) Intercompany
      advances or loans among the Borrower and any Subsidiary, or among any
      Subsidiaries, made in the ordinary course of business (including, without
      limitation, in connection with a Permitted Acquisition) or Contingent
      Obligations incurred by a Subsidiary or by the Borrower, with respect to the
      obligations of the Borrower or any Subsidiary, entered into in the ordinary
      course of business; and any other Investment (i) of Borrower or any
      Subsidiary in any Subsidiary existing as of the Closing Date, (ii) of
      Borrower in any Guarantor made after the Closing Date, (iii) of Borrower or
      any Guarantor in any Guarantor made after the Closing Date.

    

    (d) any
      Investment made by the Borrower or any trustee in respect of the Moog Inc.
      Supplemental Retirement Plan and the Moog Inc. Supplemental Retirement Plan
      Trust, each as in effect on the date hereof or as may be amended from time
      to
      time; and

    

    (e) any
      other
      Investments aggregating not more than $50,000,000 during the term of this
      Agreement.

    

    7.4 Restricted
      Payments.
      The
      Borrower will not, and will not permit any of their respective Subsidiaries
      to,
      declare or make, or agree to pay or make, directly or indirectly, any Restricted
      Payment, except for the following permitted distributions (collectively, the
      “Permitted Distributions”):

    

    (a) Borrower
      or any Subsidiary may declare and pay or make distributions that are payable
      solely in additional shares of its common stock (or warrants, options or other
      rights to acquire additional shares of its common stock);

    

    (b) (i) any
      Subsidiary may declare and pay or make Restricted Payments to Borrower or any
      Guarantor, and (ii) any Foreign Subsidiary may declare and pay or make
      Restricted Payments to any other Foreign Subsidiary or to Borrower or any
      Guarantor;

    

    (c) Borrower
      may make non-cash repurchases or redemptions of stock or other Equity Interests
      in exchange for stock or stock options; and

    

    (d) Borrower
      or any Subsidiary may declare and pay or make cash dividends, or stock
      repurchases on a pro rata basis with respect to its outstanding shares provided
      such cash dividends and stock repurchases do not exceed a $30,000,000 base
      amount for the term of this Agreement with such base amount to be supplemented
      each year by twenty-five percent (25%) of Borrower’s Consolidated Net Income for
      Borrower’s most recently completed fiscal year (collectively, the “Distribution
      Amount”) with any undistributed portions of the Distribution Amount to be
      carried forward each year until actually distributed; and provided further
      that
      (i) no Default or Event of Default shall have occurred and be continuing or
      would result therefrom, (ii) the Borrower will be in compliance with the
      financial covenants set forth in

    

    
      
        
           

        

        
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    Sections 6.1,
      6.2, 6.3 and 6.4 after giving pro forma effect to each such cash dividend and
      stock repurchase.

    

    7.5 Limitation
      on Certain Restrictive Agreements.
      The
      Borrower will not, and will not permit any Subsidiary to, directly or
      indirectly, enter into, incur or permit to exist or become effective, any
“negative pledge” covenant or other agreement, restriction or arrangement that
      prohibits, restricts or imposes any condition upon (a) the ability of
      Borrower or any Subsidiary to create, incur or suffer to exist any Lien upon
      any
      of its property or assets as security for Indebtedness, or (b) the ability
      of any such Subsidiary to make dividends or distributions or any other interest
      or participation in its profits owned by the Borrower or any Subsidiary, or
      pay
      any Indebtedness owed to the Borrower or a Subsidiary, or to make loans or
      advances to the Borrower or any other Subsidiaries, or transfer any of its
      property or assets to the Borrower or any other Subsidiaries, except for such
      restrictions existing under or by reason of (i) applicable law,
      (ii) this Agreement and the other Loan Documents, (iii) customary
      provisions restricting subletting or assignment of any lease governing a
      leasehold interest, (iv) customary provisions restricting assignment of any
      licensing agreement entered into in the ordinary course of business,
      (v) customary provisions restricting the transfer or further encumbering of
      assets subject to Liens permitted under Section 7.2, (vi) customary
      restrictions affecting only a Subsidiary under any agreement or instrument
      governing any of the Indebtedness of a Subsidiary permitted pursuant to
      Section 7.1, (vii) restrictions affecting any Foreign Subsidiary under
      any agreement or instrument governing any Indebtedness of such Foreign
      Subsidiary permitted pursuant to Section 7.1, and customary restrictions
      contained in “comfort” letters and guarantees of any such Indebtedness,
      (viii) any document relating to Indebtedness secured by a Lien permitted by
      Section 7.2, insofar as the provisions thereof limit grants of junior liens
      on the assets securing such Indebtedness, (ix) restrictions contained in
      the Subordinated Indenture relating to any Indebtedness permitted under
      Section 7.1(c), and (x) any Operating Lease or Capital Lease, insofar
      as the provisions thereof limit grants of a security interest in, or other
      assignments of, the related leasehold interest to any other Person.

     

    7.6 Material
      Indebtedness Agreements.

     

    (a) Amendments.
      The
      Borrower shall not, and shall not permit any Subsidiary to, amend, restate,
      supplement or otherwise modify any Material Indebtedness without the prior
      written consent of the Administrative Agent if any such amendment, restatement,
      supplement or other modification would materially impact the rights or remedies
      of the Administrative Agent and the Lenders hereunder.

     

    (b) Prepayment
      and Refinancings of Other Debt, etc.
      After
      the Closing Date, the Borrower will not, and will not permit any Subsidiary
      to,
      make (or give any notice in respect thereof) any voluntary or optional payment
      or prepayment or redemption or acquisition for value of (including, without
      limitation, by way of depositing with the trustee with respect thereto money
      or
      securities before due for the purpose of paying when due) or
      exchange

    
      
         

      

      
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of,
      or
      refinance or refund, any Indebtedness of Borrower or its Subsidiaries that
      has
      an outstanding principal balance (or Capitalized Lease Obligation, in the case
      of a Capital Lease) greater than $25,000,000 (other than the Indebtedness and
      intercompany loans and advances among Borrower and its Subsidiaries);
provided that
      Borrower
      or any Subsidiary may refinance or refund any such Indebtedness if the aggregate
      principal amount thereof (or Capitalized Lease Obligation, in the case of a
      Capital Lease) is not increased (other than in connection with the
      capitalization of interest) and the Borrower or any Subsidiary makes any such
      payment or prepayment or redemption or acquisition for value of (including,
      without limitation, by way of depositing with the trustee with respect thereto
      money or securities before due for the purpose of paying when due) with the
      proceeds of the sale of Equity Interests in Borrower.

     

    7.7 Changes
      in Business.
      Neither
      the Borrower nor any Subsidiary will engage in any business if, as a result,
      the
      general nature of the business, taken on a Consolidated Basis, which would
      then
      be engaged in by the Borrower and any Subsidiary, would be substantially changed
      from the general nature of the business engaged in by the Borrower and any
      Subsidiary on the Closing Date.

     

    7.8 Consolidation,
      Merger, Acquisitions, Asset Sales, etc.
      The
      Borrower will not, and will not permit any Subsidiary to, (1) wind up,
      liquidate or dissolve its affairs, (2) enter into any transaction of merger
      or consolidation, (3) make or otherwise effect any acquisition of all or
      substantially all of the assets or Equity Interests of any other Person, or
      assets constituting all or substantially all of a division or product line
      of
      any other Person, other than Permitted Acquisitions set forth in
      Section 7.8(c), (4) sell or otherwise dispose of any of its property
      or assets outside the ordinary course of business, or otherwise make or
      otherwise effect any Asset Sale, or (5) agree to do any of the foregoing at
      any future time, except the following shall be permitted (collectively, the
      “Permitted Dispositions”):

    

    (a) Certain
      Intercompany Mergers.
      If no
      Default or Event of Default shall have occurred and be continuing or would
      result therefrom, (i) the merger, consolidation or amalgamation of any
      Domestic Subsidiary with or into Borrower, provided Borrower is the surviving
      or
      continuing or resulting corporation; (ii) the merger, consolidation or
      amalgamation of any Domestic Subsidiary with or into any Guarantor, provided
      that the surviving or continuing or resulting corporation is a Guarantor,
      (iii) the merger, consolidation or amalgamation of any Foreign Subsidiary
      with or into any other Foreign Subsidiary; (iv) any Asset Sale by Borrower
      or any Guarantor to Borrower or any Guarantor, (v) any Asset Sale by any
      Foreign Subsidiary to Borrower or any Guarantor; or (vi) any Asset Sale by
      any Foreign Subsidiary to any other Foreign Subsidiary.

     

    (b) Other
      Dispositions.
      If no
      Default or Event of Default shall have occurred and be continuing or would
      result therefrom, and no Material Adverse Effect has occurred or will result
      therefrom, the Borrower or any Subsidiary may consummate any Asset Sale,
      provided that: (i) the consideration for each such Asset Sale represents
      fair value and any

    

    
      
        
           

        

        
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    non-cash
      consideration qualifies as a Permitted Investment hereunder and the aggregate
      of
      all such non-cash consideration does not exceed $30,000,000 over the term of
      this Agreement; (ii) the cumulative aggregate value of the assets sold or
      transferred does not exceed $50,000,000 in any one fiscal year (excluding for
      purposes of computing such maximum amount (i) sales of inventory in the
      ordinary course of business and conveyances of mere record title to any asset
      to
      a Governmental Authority to save taxes where Borrower or any Subsidiary has
      an
      option to require reconveyance of such property for a nominal price; and
      (ii) the sale of equipment which is obsolete or worn-out and is replaced in
      the ordinary course of business) for all such transactions completed during
      any
      fiscal year.

     

    (c) Permitted
      Acquisitions.
      Any
      acquisition by Borrower or any Subsidiary of all or substantially all of the
      assets or stock of any other Person, or assets constituting all or substantially
      all of a division or product line of any other Person so long as
      (i) immediately prior to contracting for or consummating such acquisition
      there does not exist, and there does not occur as a direct or indirect result
      of
      the consummation of such acquisition, (A) any Event of Default or Default,
      and (B) immediately prior to contracting for or consummating such
      acquisition Borrower is in compliance with Sections 6.1, 6.2 and 6.3 of
      this Agreement (collectively, the “Financial Covenants”) and Borrower can
      demonstrate based on pro-forma projections that Borrower will be in compliance
      with the Financial Covenants upon and after consummation of such acquisition,
      (ii) such acquisition is being completed on a non-hostile basis without
      opposition from the board of directors, managers or equity owners of the target
      entity, (iii) with respect to any assets or stock of any Person acquired
      directly or indirectly pursuant to any such acquisition, there are no liens
      thereon other than Permitted Encumbrances, and (iv) the aggregate purchase
      price paid (whether by means of transfer of assets, assumption of liabilities
      or
      otherwise, other than the assumption of trade payables and accrued short-term
      liabilities in the ordinary course of business) by Borrower and all Subsidiaries
      in connection with such acquisition does not exceed $100,000,000 unless
      specifically consented to by the Administrative Agent and the Required
      Lenders.

     

    7.9 Transactions
      with Affiliates.The
      Borrower will not, and will not permit any Subsidiary to, enter into any
      transaction or series of transactions with any Affiliate (other than, in the
      case of the Borrower, any Subsidiary, and in the case of a Subsidiary, the
      Borrower or another Subsidiary) (each, an “Affiliate Transaction”), except for
      transactions in the ordinary course of business upon fair and reasonable terms
      no less favorable to the Borrower or any Subsidiary than would apply in a
      comparable arm’s length transaction with a Person who is not an Affiliate, and
      agreements and transactions with and payments to officers, directors and
      shareholders that are either (i) entered into in the ordinary course of
      business and not prohibited by any of the provisions of this Agreement or that
      are expressly permitted by the provisions of this Agreement, or
      (ii) entered into outside the ordinary course of business, approved by the
      directors or shareholders of the Borrower, and not prohibited by any of the
      provisions of this Agreement or in violation of any law, rule or
      regulation.

    

    
      
        
           

        

        
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    7.10 Fiscal
      Years, Fiscal Quarters.
      No
      Borrower shall change its or any Subsidiary’s fiscal years or fiscal quarters
      (other than the fiscal year or fiscal quarters of a Person that becomes a
      Subsidiary, at the time such Person becomes a Subsidiary, to conform to such
      Borrower’s fiscal year and fiscal quarters).

     

    7.11 Anti-Terrorism
      Laws.
      Neither
      the Borrower nor any Subsidiary shall be subject to or in violation of any
      law,
      regulation, or list of any government agency (including without limitation,
      the
      U.S. Office of Foreign Asset Control list, Executive Order No. 13224 or the
      USA Patriot Act) that prohibits or limits the conduct of business with or the
      receiving of funds, goods or services to or for the benefit of certain Persons
      specified therein or that prohibits or limits any Lender or any Issuing Bank
      from making any advance or extension of credit to the Borrower or from otherwise
      conducting business with the Borrower.

     

    ARTICLE
      VIII. EVENTS
      OF DEFAULT

     

    8.1 Events
      of Default.
      The
      occurrence of any one or more of the following events shall constitute an event
      of default (individually, “Event of Default”, or, collectively, “Events of
      Default”):

     

    (a) Nonpayment.
      Nonpayment within three (3) Business Days of when due, whether by acceleration
      or otherwise, of principal of, or interest on, the Notes, any fee, cost, expense
      or premium provided for hereunder or under any other Loan Document or any other
      Indebtedness owing hereunder.

     

    (b) Negative
      Covenants.
      Default
      by Borrower in the observance of any of the covenants or agreements by such
      Borrower contained in Article VI or Article VII of this
      Agreement.

     

    (c) Other
      Covenants.
      Default
      by Borrower in the observance of any of the covenants or agreements by Borrower
      contained in this Agreement, other than in Article VI or Article VII
      or Section 5.1 of this Agreement, which is not remedied within thirty (30)
      days after notice thereof by the Administrative Agent to the
      Borrower.

     

    (d) Voluntary
      Insolvency Proceedings.
      If
      Borrower or any Guarantor or any other Subsidiary (i) shall file a petition
      or request for liquidation, reorganization, arrangement, adjudication as a
      bankrupt, relief as a debtor or other relief under the bankruptcy, insolvency
      or
      similar laws of the United States of America or any state or territory thereof
      or any foreign jurisdiction, now or hereafter in effect; (ii) shall make a
      general assignment for the benefit of creditors; (iii) shall consent to the
      appointment of a receiver or

    

    
      
        
           

        

        
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    trustee
      for Borrower or any Guarantor or any other Subsidiary or any of Borrower’s,
      Guarantor’s or other Subsidiary’s assets including, without limitation, the
      appointment of or taking possession by a “custodian” as defined in the federal
      Bankruptcy Code; (iv) shall make any, or send notice of any intended, bulk
      sale; or (v) shall execute a consent to any other type of insolvency
      proceeding (under the federal Bankruptcy Code or otherwise or under the
      insolvency laws of any other foreign jurisdiction) or any formal or informal
      proceeding for the dissolution or liquidation of, or settlement of claims
      against or winding up of affairs of, Borrower, Guarantor or any other
      Subsidiary.

     

    (e) Involuntary
      Insolvency Proceedings.
      The
      appointment of a receiver, trustee, custodian or officer performing similar
      functions for Borrower, any Guarantor or any other Subsidiary or any of
      Borrower’s, any Guarantor’s or any other Subsidiary’s assets including, without
      limitation, the appointment of or taking possession by a “custodian” as defined
      in the federal Bankruptcy Code; or the filing against Borrower, any Guarantor
      or
      any other Subsidiary of a request or petition for liquidation, reorganization,
      arrangement, adjudication as a bankrupt or other relief under the bankruptcy,
      insolvency or similar laws of the United States of America or any state or
      territory thereof or any foreign jurisdiction, now or hereafter in effect;
      or
      the institution against Borrower or any Guarantor or any other Subsidiary of
      any
      other type of insolvency proceeding (under the federal Bankruptcy Code or
      otherwise) or of any formal or informal proceeding for the dissolution or
      liquidation of, settlement of claims against or winding up of affairs of such
      Borrower or Guarantor or other Subsidiary, and the failure to have such
      appointment vacated or such petition or proceeding dismissed within sixty (60)
      days after such appointment, filing or institution.

     

    (f) Representations.
      If any
      certificate, written statement, representation, warranty or financial statement
      furnished by or on behalf of Borrower or any Guarantor pursuant to or in
      connection with this Agreement, or any Loan Document (including, without
      limitation, representations and warranties contained herein) or as an inducement
      to the Administrative Agent or any Lender to enter into this Agreement or any
      other lending agreement with Borrower shall prove to have been false in any
      material respect at the time as of which the facts therein set forth were
      certified, or to have omitted any substantial contingent or unliquidated
      liability or claim against Borrower or any Subsidiary or any
      Guarantor.

     

    (g) Other
      Indebtedness and Agreements.
      (i) Nonpayment by Borrower or any Guarantor or any other Subsidiary of any
      Material Indebtedness owing by Borrower or such Guarantor or such other
      Subsidiary when due, whether such Material Indebtedness shall become due by
      scheduled maturity, by required prepayment, by acceleration, by demand or
      otherwise, or (ii) failure to perform any material term, covenant or
      agreement on its part to be performed under any agreement or instrument (other
      than this Agreement) evidencing or securing or relating to any such Material
      Indebtedness owing by Borrower or such Guarantor or such other Subsidiary,
      when
      required to be performed if the effect of such failure is to permit the holder
      or a trustee or agent on behalf of such holder or holders to accelerate the
      maturity of such Indebtedness,
      or
      (iii) any such Material Indebtedness of Borrower, any Guarantor or any
      Subsidiary shall be declared due and payable, or shall be required to be
      prepaid

    

    
      
        
           

        

        
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    (other
      than by a regularly scheduled prepayment or redemption, prior to the stated
      maturity thereof); or (iv) without limitation of the foregoing, default in
      any payment obligation under a Designated Hedge Agreement, and such default
      shall continue after any applicable grace period in such Designated Hedge
      Agreement or any other agreement or instrument relating thereto.

     

    (h) Judgments.
      If any
      judgment or judgments in excess of $25,000,000 for any one such judgment or
      all
      judgments in the aggregate (other than any judgment for which it is fully
      insured) against Borrower or any Guarantor or any other Subsidiary remains
      unpaid, unstayed on appeal, undischarged, unbonded or undismissed for a period
      of thirty (30) days
      (or such
      longer period, not in excess of sixty (60) days, during which enforcement
      thereof and the filing of any judgment lien, is effectively stayed or
      prohibited) from the entry thereof.

     

    (i) Pension
      Default.
      Any
      occurrence of a Reportable Event that constitutes grounds for the termination
      of
      any Pension Plan by the PBGC or for the appointment by an appropriate United
      States district court of a trustee to administer any Pension Plan shall have
      occurred and continued thirty (30) days after written notice thereof is
      delivered to the Borrower by the Administrative Agent; or any other ERISA Event
      occurs and gives rise to vested unfunded liabilities under any Pension Plan
      that
      have or will have a Material Adverse Effect; or Borrower or any ERISA Affiliate
      or any Guarantor fails to pay to any Pension Plan any contribution which it
      is
      obligated to pay under the terms of such plan or any agreement, or which is
      required to meet statutory minimum funding standards of Section 412 of the
      Code and Section 303 of ERISA.

     

    (j) Change
      in Control.
      If
      there occurs a Change in Control.

     

    (k) Challenge
      to Agreements.
      If
      Borrower or any Guarantor shall challenge the validity and binding effect of
      any
      provision of any of the Loan Documents or shall state its intention to make
      such
      a challenge of any of the Loan Documents or any of the Security Documents shall
      for any reason (except to the extent permitted by its express terms) cease
      to be
      perfected or lose the priority of the Lien granted thereunder or cease to be
      effective.

     

    (l) Guarantor
      Default.
      Any
      Guaranty shall cease, for any reason, to be in full force and effect or any
      Guarantor or the Borrower shall so assert in writing.

     

    (m) Subordinated
      Indenture.
      If
      (i) any Event of Default (as defined in the Subordinated Indenture) shall
      occur under the Subordinated Indenture, (ii) this Agreement shall fail to
      constitute the “Credit Agreement” or the Indebtedness under this Agreement shall
      fail to constitute “Senior Debt” and “Designated Senior Debt” under, and as
      defined in, the Subordinated Indenture, or (iii) if any Indebtedness other
      than the Indebtedness under this Agreement is designated as “Designated Senior
      Debt” under, and as defined in, the Subordinated Indenture.

    
      
         

      

      
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    8.2 Effects
      of an Event of Default.
      (a) Upon
      the
      happening of one or more Events of Default (except a default under either
      Section 8.1(d) or 8.1(e) of this Agreement), the Administrative Agent may
      declare or shall do so if instructed by the Required Lenders, any commitments
      of
      the Lenders to lend money to the Borrower or issue Letters of Credit hereunder
      (individually, the “Lender’s Obligations” and collectively, the “Lenders’
Obligations”) to be canceled and the principal of such Lender’s Note or Notes
      then outstanding, and all reimbursement, cash collateralization and other
      obligations of the Borrower (other than under any Designated Hedge Agreement)
      to
      be immediately due and payable and any Letters of Credit outstanding to be
      terminated in accordance with their terms, together with all interest thereon
      and fees and expenses accruing under this Agreement and under any Loan Document.
      Upon such declaration, the Lenders’ Obligations shall be immediately canceled
      and the Loans evidenced by each Lender’s Note or Notes shall become immediately
      due and payable without presentation, demand or further notice of any kind
      to
      the Borrower.

     

    (b) Upon
      the
      happening of one or more Events of Default under Section 8.1(d) or 8.1(e)
      of this Agreement, the Lenders’ Obligations shall be canceled immediately,
      automatically and without notice, and the Notes shall become immediately due
      and
      payable without presentation, demand or notice of any kind to
      Borrower.

     

    (c) No
      termination of this Agreement will relieve or discharge Borrower of its duties,
      obligations and covenants hereunder until all of the Indebtedness hereunder
      has
      been indefeasibly paid in full.

     

    8.3 Remedies.
      Upon
      the occurrence and during the continuance of any Event of Default or upon any
      termination of this Agreement as a result of an Event of Default, then any
      of
      the Lenders and the Administrative Agent shall have all of their rights under
      this Agreement or otherwise under law. In addition to, and without limitation
      of, any rights of the Lenders under applicable law, if any Event of Default
      occurs, any and all deposits (including all account balances, whether
      provisional or final and whether or not collected or available) and any other
      Indebtedness at any time held or owing by any Lender to or for the credit or
      account of Borrower may be offset and applied toward the payment of the
      Indebtedness of the Borrower.

     

    8.4 Application
      of Certain Payments and Proceeds.
      All
      payments and other amounts received by the Administrative Agent or any Lender
      through the exercise of remedies hereunder or under the other Loan Documents
      shall, unless otherwise required by the terms of the other Loan Documents or
      by
      applicable law, be applied as follows:

     

    (i) first,
      to
      the payment of all expenses (to the extent not otherwise paid by the Borrower
      or
      any of the Guarantors) incurred by the Administrative Agent and the Lenders
      in
      connection with the exercise of such remedies, including, without limitation,
      all reasonable costs and expenses of collection, reasonable attorneys’ fee and
      expenses, court costs and any foreclosure expenses;

    

    
      
        
           

        

        
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    (ii) second,
      to the payment pro rata of interest then accrued on the outstanding
      Loans;

     

    (iii) third,
      to
      the payment pro rata of any fees then accrued and payable to the Administrative
      Agent, any Issuing Bank or any Lender under this Agreement in respect of the
      Loans or the Letters of Credit;

     

    (iv) fourth,
      to the payment pro rata of (A) the principal balance then owing on the
      outstanding Loans, (B) the amounts then due under Designated Hedge
      Agreements to creditors of the Borrower or any Subsidiary, subject to
      confirmation by the Administrative Agent of any calculations of termination
      or
      other payment amounts being made in accordance with normal industry practice,
      and (C) the principal amount of the outstanding Letters of Credit (to be
      held and applied by the Administrative Agent as security for the reimbursement
      obligations in respect thereof);

     

    (v) fifth,
      to
      the payment to the Lenders of any amounts then accrued and unpaid under
      Sections 2.9, 2.10 and 2.11 of this Agreement, and if such proceeds are
      insufficient to pay such amounts in full, to the payment of such amounts pro
      rata;

     

    (vi) sixth,
      to
      the payment pro rata of all other amounts owed by the Borrower to the
      Administrative Agent, to any Issuing Bank or any Lender under this Agreement
      or
      any other Loan Document, and to any counterparties under Designated Hedge
      Agreements of the Borrower and any Subsidiary, and if such proceeds are
      insufficient to pay such amounts in full, to the payment of such amounts pro
      rata; and

     

    (viii) finally,
      any remaining surplus after all of the Indebtedness has been paid in full,
      to
      the Borrower or to whomsoever shall be lawfully entitled thereto.

     

    ARTICLE
      IX. EXPENSES

     

    9.1 Expenses.
      The
      Borrower shall reimburse the Administrative Agent promptly upon the
      Administrative Agent’s request for any of the Administrative Agent’s reasonable
      expenses, including counsel fees and expenses, incident to the negotiation,
      documentation and administration of this Agreement, including any amendments
      or
      modifications thereto, and the documents in connection herewith and for
      preservation of any of the Administrative Agent’s or any Lender’s rights under,
      or enforcement of any provision of, this Agreement, the Notes, the Loan
      Documents or any documents executed in connection therewith.

     

    9.2 Indemnification.
      Borrower shall indemnify and hold harmless the Administrative Agent and each
      Lender and each of their directors, officers, employees, agents and advisors
      (each an “Indemnified Party”)

    

    
      
        
           

        

        
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    from
      and
      against any and all claims, damages, liabilities and reasonable fees, expenses
      and disbursements of counsel, demands, losses, costs, fines or liabilities
      of
      whatever kind or nature, including, without limitation, arising from personal
      injury or property damage, in any way related to any environmental condition
      on,
      above, within, in the vicinity of, related to or affected by property owned
      or
      leased by Borrower or in connection with or arising out of any investigation,
      litigation or proceeding arising out of, related to or in connection with this
      Agreement or the Loans (other than litigation between Borrower and a Lender
      in
      which Borrower is the prevailing party), whether or not an Indemnified Party
      is
      a party to such investigation, litigation or proceeding except to the extent
      such claim, damage, loss, liability or expense is found in a final judgment
      by a
      court of competent jurisdiction to have resulted primarily from such Indemnified
      Party’s own gross negligence or willful misconduct. In addition to, and without
      limiting the generality of, the foregoing, Borrower agrees to reimburse and
      indemnify all Indemnified Parties on demand for any reasonable fees and expenses
      of counsel which may be incurred in any action, claim or proceeding between
      Borrower, any Subsidiary or any Affiliate and an Indemnified Party in which
      such
      Indemnified Party is successful. The obligations of the Borrower under this
      indemnity shall survive any expiration or termination hereof, and shall apply
      to
      any and all such claims, expenses, demands, losses, costs, fines or liabilities
      of whatever kind or nature, notwithstanding the payment of the Indebtedness
      hereunder or under the Loan Documents with respect to acts and omissions
      occurring before such payment. Borrower agrees not to institute or participate
      in any proceeding seeking to establish a position contrary to the terms of
      this
      indemnification.

     

    ARTICLE
      X. THE
      AGENTS
      AND ISSUING BANKS

     

    10.1 Appointment
      and Authorization.
      Each
      Lender hereby irrevocably appoints HSBC Bank as Administrative Agent,
      Manufacturers and Traders Trust Company as Syndication Agent, and Bank of
      America, N.A. and JPMorgan Chase Bank, N.A. as Co-Documentation Agents, and
      each
      of the Administrative Agent, Syndication Agent and Co-Documentation Agents
      accepts such appointment. Each Lender hereby irrevocably authorizes the Agents
      to take such action as such agent on its behalf and to exercise such powers
      hereunder as are delegated to such agent by the terms hereof, together with
      such
      powers as are reasonably incidental thereto. Neither the Agents nor any of
      their
      directors, officers, attorneys or employees shall be liable for any action
      taken
      or omitted to be taken by such agent or them hereunder or in connection
      herewith, except for such agent’s or their own gross negligence or willful
      misconduct as determined in a final judgment by a court of competent
      jurisdiction. The Administrative Agent (a) shall have no duties or
      responsibilities except those expressly set forth in this Agreement and in
      the
      other Loan Documents, and shall not by reason of this Agreement or any other
      Loan Documents be a trustee or fiduciary for any Lender; (b) shall not be
      responsible to any Lender for any recitals, statements, representations or
      warranties contained in this Agreement or in any of the other Loan Documents,
      or
      in any certificate or other document referred to or provided for in, or received
      by any of them under, this Agreement or any other Loan Documents, or for the
      value, validity, effectiveness, genuineness, enforceability or

    

    
      
        
           

        

        
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    sufficiency
      of this Agreement or any other Loan Documents or any other document referred
      to
      or provided for herein or therein or for any failure by Borrower, or any other
      Person to perform any of its obligations hereunder or thereunder; and (c) shall
      not be responsible to any Lender for any action taken or omitted to be taken
      by
      it hereunder or under any other Loan Documents or under any other document
      or
      instrument referred to or provided for herein or therein or in connection
      herewith or therewith, except in the event of such agent’s own gross negligence
      or willful misconduct, as determined by a final judgment of a court of competent
      jurisdiction. The Administrative Agent may employ agents and attorneys-in-fact
      and shall not be responsible for the negligence or misconduct of any such agent
      or attorneys-in-fact selected by it in good faith. In administering the Letters
      of Credit, the Issuing Banks shall not be under any liability to any Lender,
      except for such Issuing Bank’s own gross negligence or willful misconduct, as
      determined in a final non-appealable decision of a court of competent
      jurisdiction or as set forth in Section 2.4 of this Agreement.

     

    10.2 Waiver
      of Liability of Administrative Agent.
      The
      Administrative Agent shall not have any liability or, as the case may be, any
      duty or obligation:

     

    (a) To
      Borrower on account for any failure of any Lender to perform, or the delay
      of
      any Lender in the performance of, any of its respective obligations under this
      Agreement or any of the Loan Documents or any of the other documents in
      connection herewith;

     

    (b) To
      any
      Lender on account of any failure or delay in performance by Borrower or any
      other Lender of any of their respective obligations under this Agreement or
      any
      of the Loan Documents or any of the other documents in connection
      herewith;

     

    (c) To
      any
      Lender to provide either initially or on a continuing basis any information
      with
      respect to Borrower or any of its Affiliates or Subsidiaries or its condition,
      or for analyzing or assessing or omitting to analyze or assess the status,
      creditworthiness or prospects of Borrower or any of the Affiliates of Borrower
      or any Subsidiaries, provided,
      however,
      the
      Administrative Agent shall promptly provide to each Lender a copy of the
      documents delivered by Borrower to the Administrative Agent pursuant to
      Section 5.2 of this Agreement;

     

    (d) To
      any
      Lender to investigate whether or not any Default or Event of Default has
      occurred (and the Agents may assume that, until Administrative Agent shall
      have
      actual knowledge or shall have received notice from any Lender or Borrower,
      to
      the contrary, no such Default or Event of Default has occurred);

     

    (e) To
      any
      Lender to account for any sum or profit or any property of any kind received
      by
      any of the Agents or any Issuing Bank arising out of any present or future
      banking or other relationship with Borrower or any of the Affiliates of Borrower
      or any Subsidiaries, or with any other Person except the relationship
      established pursuant to this Agreement or the Loan Documents;

    

    
      
        
           

        

        
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    (f) To
      any
      Lender to disclose to any Person any information relating to Borrower or any
      of
      the Affiliates of Borrower or any Subsidiaries received by the Agents or any
      Issuing Bank, if in any such party’s reasonable determination (such
      determination to be conclusive), such disclosure would or might constitute
      a
      breach of any law or regulation or be otherwise actionable by suit against
      such
      agent or any Issuing Bank by Borrower or any other Person;

     

    (g) To
      take
      any action or refrain from taking any action other than as expressly required
      by
      this Agreement and the Loan Documents; and

     

    (h) To
      commence any legal action or proceeding arising out of or in connection with
      this Agreement or the Loan Documents until either of the Administrative Agent
      or
      the Issuing Banks, shall have been indemnified to the Administrative Agent’s or
      the Issuing Banks’ satisfaction against any and all costs, claims and expenses
      (including, but not limited to, attorneys’ fees and expenses) in respect of such
      legal action or proceeding.

     

    10.3 Note
      Holders.
      The
      Administrative Agent may treat the payee of any Note as the holder thereof
      until
      written notice of transfer shall have been filed with it, signed by such payee
      and in form satisfactory to the Administrative Agent.

     

    10.4 Consultation
      with Counsel.
      The
      Administrative Agent may consult with legal counsel selected by the
      Administrative Agent and shall not be liable for any action taken or suffered
      in
      good faith by the Administrative Agent in accordance with the opinion of such
      counsel.

     

    10.5 Documents.
      The
      Administrative Agent shall not be under any duty to examine into or pass upon
      the validity, effectiveness, genuineness or value of any Loan Documents or
      any
      other documents furnished pursuant hereto or in connection herewith or the
      value
      of any Collateral obtained hereunder, and the Administrative Agent shall be
      entitled to assume that the same are valid, effective and genuine and what
      they
      purport to be.

     

    10.6 Administrative
      Agent and Affiliates.
      With
      respect to the Loans, the Administrative Agent shall have the same rights and
      powers hereunder as any other Lender and may exercise the same as though it
      were
      not the Administrative Agent, and the Administrative Agent and its Affiliates
      may accept deposits from, lend money to and generally engage in any kind of
      business with Borrower, any Guarantor or any other Subsidiary or any Affiliate
      thereof including, without limitation, entering into any kind of Hedge Agreement
      with respect to the Loans.

    

    
      
        
           

        

        
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    10.7 Knowledge
      of Default.
      It is
      expressly understood and agreed that the Administrative Agent and each Issuing
      Bank shall be entitled to assume that no Default or Event of Default has
      occurred and is continuing, unless the Administrative Agent or such Issuing
      Bank
      has been notified by a Lender in writing that such Lender believes that a
      Default or Event of Default has occurred and is continuing and specifying the
      nature thereof.

     

    10.8 Enforcement.
      In the
      event any remedy may be exercised with respect to this Agreement or the Loan
      Documents, the Administrative Agent shall have the sole right of enforcement
      and
      each Lender agrees that no Lender shall have any right individually to enforce
      any provision of this Agreement or the Loan Documents, or make demand under
      this
      Agreement or the Loan Documents; provided,
      that
      any
      Issuing Bank or the Administrative Agent on behalf of such Issuing Bank may
      make
      demand upon Borrower as an Issuing Bank.

     

    10.9 Action
      by Administrative Agent.
      So long
      as the Administrative Agent shall be entitled, pursuant to Section 10.7 of
      this Agreement, to assume that no Default or Event of Default shall have
      occurred and be continuing, the Administrative Agent shall be entitled to use
      its discretion with respect to exercising or refraining from exercising any
      rights which may be vested in it by, or with respect to taking or refraining
      from taking any action or actions which it may be able to take under or in
      respect of, this Agreement. The Administrative Agent shall incur no liability
      under or in respect of this Agreement by acting upon any notice, certificate,
      warranty or other paper or instrument believed by it to be genuine or authentic
      or to be signed by the proper party or parties, or with respect to anything
      which it may do or refrain from doing in the reasonable exercise of its
      judgment, or which may seem to it to be necessary or desirable in the
      premises.

     

    10.10 Notices,
      Defaults, etc.
      In the
      event that the Administrative Agent shall have acquired actual knowledge of
      any
      Default or Event of Default, the Administrative Agent shall promptly notify
      the
      Lenders and shall take such action and assert such rights under this Agreement
      as the Required Lenders shall direct and the Administrative Agent shall inform
      the other Lenders in writing of the action taken. The Administrative Agent
      may
      take such action and assert such rights as it deems to be advisable, in its
      discretion, for the protection of the interests of the holders of the
      Notes.

     

    10.11 Indemnification
      of Administrative Agent.
      The
      Lenders agree to indemnify the Administrative Agent (to the extent not
      reimbursed by the Borrower), ratably according to their respective Applicable
      Percentages from and against any and all liabilities, obligations, losses,
      damages, penalties, actions, judgments, suits, costs, expenses or disbursements
      of any kind or nature whatsoever which may be imposed on, incurred

    

    
      
        
           

        

        
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    by
      or
      asserted against the Administrative Agent in its capacity as the Administrative
      Agent in any way relating to or arising out of this Agreement or any Loan
      Document or any action taken or omitted by the Administrative Agent with respect
      to this Agreement or any Loan Document, provided no Lender shall be liable
      for
      any portion of such liabilities, obligations, losses, damages, penalties,
      actions, judgments, suits, costs, expenses (including attorney fees and
      expenses) or disbursements resulting from the Administrative Agent’s gross
      negligence or willful misconduct as determined in a final judgment by a court
      of
      competent jurisdiction or from any action taken or omitted by the Administrative
      Agent in any capacity other than as the Administrative Agent under this
      Agreement.

     

    10.12 Successor
      Administrative Agent.
      The
      Administrative Agent may resign as the Administrative Agent hereunder by giving
      not fewer than thirty (30) days prior written notice to the Borrower and the
      Lenders. If the Administrative Agent shall resign under this Agreement, then
      either (a) the Required Lenders shall appoint from among the Lenders a successor
      administrative agent for the Lenders (with the consent of the Borrower so long
      as an Event of Default has not occurred and which consent shall not be
      unreasonably withheld), or (b) if a successor administrative agent shall not
      be
      so appointed and approved within the thirty (30) day period following the
      Administrative Agent’s notice to the Lenders of its resignation, then the
      Administrative Agent shall appoint a successor administrative agent who shall
      serve as the Administrative Agent until such time as the Required Lenders
      appoint a successor administrative agent. Upon its appointment, such successor
      administrative agent shall succeed to the rights, powers and duties as the
      Administrative Agent, and the term “Administrative Agent” shall mean such
      successor effective upon its appointment, and the former Administrative Agent’s
      rights, powers and duties as the Administrative Agent shall be terminated
      without any other or further act or deed on the part of such former
      Administrative Agent or any of the parties to this Agreement.

     

    10.13 Lenders’
      Independent Investigation.
      Each
      Lender, by its signature to this Agreement, acknowledges and agrees that the
      Administrative Agent has made no representation or warranty, express or implied,
      with respect to the creditworthiness, financial condition, or any other
      condition of Borrower or with respect to the statements contained in any
      information memorandum furnished in connection herewith or in any other oral
      or
      written communication between the Administrative Agent and such Lender. Each
      Lender represents that it has made and shall continue to make its own
      independent investigation of the creditworthiness, financial condition and
      affairs of the Borrower in connection with the extension of credit hereunder,
      and agrees that the Administrative Agent has no duty or responsibility, either
      initially or on a continuing basis, to provide any Lender with any credit or
      other information with respect thereto (other than such notices as may be
      expressly required to be given by the Administrative Agent to the Lenders
      hereunder), whether coming into its possession before the granting of the first
      Loans hereunder or at any time or times thereafter.

    
      
         

      

      
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    10.14 Amendments,
      Consents.
      No amendment, modification, termination or waiver of any provision of any Loan
      Document nor consent to any variance therefrom, shall be effective unless the
      same shall be in writing and signed by the Administrative Agent and the Lenders
      or Required Lenders, as appropriate, and then such waiver or consent shall
      be
      effective only in the specific instance and for the specific purpose for which
      given. Anything herein to the contrary notwithstanding, unanimous consent of
      the
      Lenders shall be required with respect to (a) any increase in the Lenders’
Commitment hereunder or any part thereof, (b) the extension or postponement
      of the Revolving Credit Maturity Date, the payment dates of interest thereunder,
      or the payment of facility or other fees or amounts payable hereunder,
      (c) any reduction in the rate of interest on the Revolving Notes or
      Alternative Currency Notes, or in any amounts of principal or interest due
      on
      any Revolving Note or Alternative Currency Note, or the payment of facility
      or
      other fees hereunder or any change in the manner of pro rata application of
      any
      payments made by the Borrower to the Lenders hereunder, (d) any change in any
      percentage voting requirement, voting rights, or the Required Lenders definition
      in this Agreement, (e) the release of any material Collateral other than in
      connection with a Permitted Disposition which the Administrative Agent alone
      may
      release, or (f) any amendment to this Section 10.14; provided, however,
      only the consent of the Required Lenders shall be required for a waiver
      involving (i) the applicability of any post-Event of Default interest rate
      increase or the applicability of interest on Overdue Amounts as provided in
      Section 2.6(c) of this Agreement, (ii) any reduction in the amount of
      Net Proceeds required to be applied to prepay the Loans as provided in
      Section 2.7(b) of this Agreement or (iii) any other amendment
      hereunder or under the other Loan Documents which does not specifically require
      unanimous consent of the Lenders. Notice of amendments or consents ratified
      by
      the Required Lenders hereunder shall immediately be forwarded by the
      Administrative Agent to all Lenders. Each Lender or other holder of a Note
      shall
      be bound by any amendment, waiver or consent obtained as authorized by this
      Section, regardless of its failure to agree thereto. A Defaulting Lender shall
      not be entitled to give instructions to the Administrative Agent or to approve,
      disapprove, consent to or vote on any matters relating to this Agreement and
      the
      other Loan Documents. All amendments, waivers and other modifications of this
      Agreement and the other Loan Documents may be made without regard to a
      Defaulting Lender and, for purposes of the definition of “Required Lenders”, a
      Defaulting Lender shall be deemed not to be a Lender and not to have any
      Revolving Credit Exposures and Unused Commitments.

     

    10.15 Funding
      by Administrative Agent.
      Unless
      the Administrative Agent shall have been notified in writing by any Lender
      not
      later than 4:00 p.m. on the day before the day on which Loans are requested
      by
      Borrower to be made that (or, if the request for a Loan is made by Borrower
      on
      the date such Loan is to be made, then not later than 2:00 p.m. on such day)
      such Lender will not make its ratable share of such Loans, the Administrative
      Agent may assume that such Lender will make its ratable share of the Loans,
      and
      in reliance upon such assumption the Administrative Agent may (but in no
      circumstances shall be required to) make available to the applicable Borrower
      a
      corresponding amount. If and

     

    

    
      
        
           

        

        
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    to
      the
      extent that any Lender fails to make such payment on such date, such Lender
      shall pay such amount to the Administrative Agent on demand, together with
      interest thereon, as set forth in Section 2.5(b) of this Agreement.

     

    10.16 Sharing
      of Payments.
      If any
      Lender obtains any payment (whether voluntary, involuntary, through the exercise
      of any right of set-off, or otherwise) with respect to the Loans in excess
      of
      its pro rata share of such payments shared by all Lenders, such Lender shall
      forthwith purchase from the other Lenders participation in the Loans made by
      them as shall be necessary to cause such purchasing Lender to share the excess
      payment ratably with each of them; provided,
      however,
      if all
      or any portion of such excess payment is hereafter recovered from such
      purchasing Lender, such purchase from the other Lenders shall be rescinded
      and
      each other Lender shall repay to the purchasing Lender the purchase price to
      the
      extent of such recovery together with an amount equal to such Lender’s ratable
      share of any interest or other amount paid or payable by the purchasing Lender
      in respect of the total amount recovered. Borrower agrees that any Lender
      purchasing a participation from another Lender pursuant to this Section 10.16
      may, to the fullest extent permitted by law, exercise all of its rights of
      payment (including the right of set-off) with respect to such participation
      as
      fully as if such Lender were the direct creditor of Borrower in the amount
      of
      such participation.

     

    10.17 Payment
      to Lenders.
      Except
      as otherwise set forth in Sections 2.3(c), 2.4(e), 2.15 and 10.15 of this
      Agreement, promptly after receipt from Borrower of any principal or interest
      payment on the Notes or any fees payable under, or in connection with, this
      Agreement (other than fees payable to the Administrative Agent for the account
      of the Administrative Agent), the Administrative Agent shall promptly distribute
      to each Lender that Lender’s ratable share of the funds so received. If the
      Administrative Agent fails to distribute collected funds received by 2:00 p.m.
      on any Business Day prior to the end of the same Business Day, or to distribute
      collected funds received after 2:00 p.m. on any Business Day by the end of
      the
      next Business Day, the funds shall bear interest until distributed at the
      Federal Funds Effective Rate.

     

    10.18 Tax
      Withholding Clause.
      Each
      Foreign Lender (including any replacement or successor Lender hereunder) shall:
      

     

    (a) at
      least
      five (5) Business Days before the date of the initial payment to be made by
      Borrower under this Agreement to such Lender, deliver to the Borrower and the
      Administrative Agent (i) two duly completed copies of United States Internal
      Revenue Service Form W-8BEN or W-8ECI, or successor applicable form, as the
      case
      may be, certifying that it is entitled to receive under this Agreement without
      deduction or withholding of any United States federal income taxes and (ii)
      an
      Internal Revenue Service Form W-8BEN, or any successor applicable form,
      certifying that it is entitled to an exemption from United States backup
      withholding tax;

    

    
      
        
           

        

        
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    (b) deliver
      to the Borrower and the Administrative Agent two further copies of any such
      form
      or certification at least five (5) Business Days before the date that any such
      form or certification expires or becomes obsolete and after the occurrence
      of
      any event requiring a change in the most recent form previously delivered by
      it
      to the Administrative Agent and the Borrower;

     

    (c) obtain
      such extensions of time for filing and complete such forms certifications as
      may
      reasonably be requested by the Borrower or the Administrative Agent;
      and

     

    (d) file
      amendments to such forms as and when required unless an event (including,
      without limitation, any change in treaty, law or regulation) has occurred after
      the date such Person becomes a Lender hereunder which renders all such forms
      inapplicable or which would prevent such Lender from duly completing and
      delivering any such form with respect to it and such Lender so advises the
      Borrower and the Administrative Agent; provided, however, that the Borrower
      may
      rely upon such forms provided to the Borrower for all periods prior to the
      occurrence of such event. Furthermore, the Borrower shall not be required to
      pay
      any additional amounts to a Foreign Lender pursuant to Section 2.11, and shall
      be permitted to reduce any payment required to be made to any Lender by any
      present or future income, stamp or other Taxes, deductions or withholdings
      (that
      otherwise would not be permitted to reduce such payment pursuant to the
      provisions of Section 2.14 of this Agreement), if such additional amounts
      or present or future income, stamp or other Taxes, deductions or withholdings
      would not have arisen or would not have been required to have been withheld,
      but
      for a failure by such Foreign Lender to comply with the provisions of this
      Section 10.18.

     

    10.19 USA
      Patriot Act.
      Each
      Lender or assignee or participant of a Lender that is not organized under the
      laws of the United States of America or a state thereof (and is not excepted
      from the certification requirement contained in Section 313 of the USA
      Patriot Act and the applicable regulations because it is both (a) an affiliate
      of a depository institution or foreign bank that maintains a physical presence
      in the United States or foreign country, and (b) subject to supervision by
      a banking authority regulating such affiliated depository institution or foreign
      bank) shall deliver to the Administrative Agent the certification, or, if
      applicable, recertification, certifying that such Lender is not a “shell” and
      certifying to other matters as required by Section 313 of the USA Patriot
      Act and the applicable regulations: (i) within 10 days after the Closing
      Date, and (ii) at such other times as re required under the USA Patriot
      Act.

    
      
         

      

      
        -96-

        
          

        

      

      
         

      

    

     

    10.20 Other
      Agents.
      Any Lender identified herein as a Syndication Agent, Co-Documentation Agent,
      Arranger or any other corresponding title, other than “Administrative Agent”,
      shall have no right, power, obligation, liability, responsibility or duty under
      this Agreement or any other Loan Document except those applicable to all Lenders
      as such. Each Lender acknowledges that it has not relied, and will not rely,
      on
      any Lender so identified in deciding to enter into this Agreement or in taking
      or not taking any action hereunder.

     

    10.21 Issuing
      Banks.
      Each
      Lender acknowledges and agrees that the provisions of this Article X shall
      apply to each Issuing Bank, in its capacity as issuer of any Letter of Credit,
      in the same manner as such provisions are expressly stated to apply to the
      Administrative Agent.

     

    10.22 Benefit
      of Article X.
      The
      provisions of this Article X are intended solely for the benefit of the Agents,
      the Issuing Banks and the Lenders. The Borrower shall not be entitled to rely
      on
      any such provisions or assert any such provisions in a claim, or as a defense,
      against the Agents or any Lender. The Borrower acknowledges and consents to
      the
      foregoing provisions of this Article X.

     

    ARTICLE
      XI. MISCELLANEOUS

     

    11.1 Amendments
      and Waivers.
      This
      Agreement is intended by the parties as the final, complete and exclusive
      statement of the transactions evidenced by this Agreement. All prior or
      contemporaneous promises, agreements and understandings, whether oral or
      written, are deemed to be superseded by this Agreement, and no party is relying
      on any promise, agreement or understanding not set forth in this Agreement.
      No
      modification, rescission, waiver, release or amendment of any provision of
      this
      Agreement shall be made except by a written agreement or as otherwise provided
      in Section 10.14 of this Agreement, subscribed by authorized officers of
      the Borrower or the Required Lenders (or all the Lenders, if applicable), and
      the Administrative Agent.

     

    11.2 Classified
      Programs.
      Notwithstanding any other provisions of this Agreement, no provision of this
      Agreement shall operate to require the disclosure of any information relating
      to
      any classified program involving the United States Department of Defense in
      contravention of any restriction described in Section 5.2(k) of this
      Agreement or to require any party to any contract relating to any such
      classified program to be performed by the Borrower or any Subsidiary to accept
      performance by any other Person without any prior consent required under such
      classified program.

    
      
         

      

      
        -97-

        
          

        

      

      
         

      

    

     

    11.3 Delays
      and Omissions.
      No course of dealing and no delay or omission by the Lenders or the
      Administrative Agent in exercising any right or remedy hereunder or with respect
      to any Indebtedness of Borrower shall operate as a waiver thereof or of any
      other right or remedy, and no single or partial exercise thereof shall preclude
      any other or further exercise thereof or the exercise of any other right or
      remedy. The Administrative Agent and the Lenders may remedy any Event of Default
      in any reasonable manner without waiving the Event of Default remedied and
      without waiving any other prior or subsequent Event of Default by Borrower
      and
      shall be reimbursed for their expenses in so remedying such Event of Default.
      All rights and remedies of the Lenders and the Administrative Agent hereunder
      are cumulative. 

     

    11.4 Assignments/Participation.
      

     

    (a) The
      Borrower shall not assign or otherwise transfer any of its rights pursuant
      to
      this Agreement without the prior written consent of the Administrative Agent,
      and any such assignment or other transfer without such prior written consent
      shall be void.

     

    (b) Any
      Lender may, in accordance with applicable law, at any time sell to one or more
      banks or other entities (each, a “Participant”) participating interests in any
      Revolving Loan or Alternative Currency Loan owing to such Lender, any Revolving
      Note or Alternative Currency Note held by such Lender, any Commitment or
      Alternative Currency Sublimit of such Lender or any other interest of such
      Lender under the Loan Documents. In the event of any such sale by a Lender
      of
      participating interests to a Participant, such Lender’s obligations under the
      Loan Documents shall remain unchanged, such Lender shall remain solely
      responsible to the other parties hereto for the performance of such obligations,
      such Lender shall remain the holder of any such Revolving Loan or Alternative
      Currency Loan or Revolving Note or Alternative Currency Note for all purposes
      under the Loan Documents, all amounts payable by Borrower under this Agreement
      shall be determined as if such Lender had not sold such participating interests,
      and the Borrower and the Administrative Agent shall continue to deal solely
      and
      directly with such Lender in connection with such Lender’s rights and
      obligations under the Loan Documents.
      In no
      event shall any Participant have any right to approve any amendment or waiver
      of
      any provision of any Loan Document, or any consent to any departure by Borrower
      or any Guarantor therefrom, except to the extent that such amendment, waiver
      or
      consent would reduce the principal of, or interest on, the Loans or any fees
      payable hereunder, or postpone the Revolving Credit Maturity Date, in each
      case
      to the extent subject to such participation.

     

    (c) Any
      Lender may, in the ordinary course of its business and in accordance with
      applicable law, at any time assign to one or more banks, finance companies,
      or
      other financial institutions that are engaged in making, purchasing or otherwise
      investing in commercial loans in the ordinary course of its business
      (“Purchasers”) all or any part of its rights and obligations under the Loan
      Documents. Such assignment shall be pursuant to an Assignment and Assumption.
      The consent of the Administrative Agent shall be required prior to

    

    
      
        
           

        

        
          -98-

          
            

          

        

        
           

        

      

    

    

    an
      assignment becoming effective and, unless a Default or Event of Default has
      occurred and is continuing or such assignment is to a Lender or an Affiliate
      of
      a Lender, the consent of the Borrower shall also be required prior to an
      assignment becoming effective. Each such assignment shall be in an amount not
      less than the lesser of (i) $10,000,000, or (ii) the remaining amount of the
      assigning Lender’s Commitment (calculated as at the date of such assignment).
      Upon (i) delivery to the Administrative Agent of an Assignment and Assumption,
      together with any consents required above, and (ii) payment of a $3,500 fee
      to
      the Administrative Agent for processing such assignment, such assignment shall
      become effective on the effective date specified in such Assignment and
      Assumption. On and after the effective date of such assignment, such Purchaser
      shall for all purposes be a Lender to this Agreement and any other Loan Document
      executed by the Lenders and shall have all the rights and obligations of a
      Lender under the Loan Documents, to the same extent as if it were an original
      party hereto, and no further consent or action by the Borrower, the Lenders
      or
      the Administrative Agent shall be required to release the transferor Lender,
      and
      the transferor Lender shall be released without any further action, with respect
      to the Commitments, Alternative Currency Sublimit and Revolving Loans and
      Alternative Currency Loans assigned to such Purchaser. Any assignment or
      transfer by a Lender of rights or obligations under this Agreement that does
      not
      comply with this Section 11.4(c) shall be treated for purposes of this
      Agreement as a sale by such Lender of a participation in such rights and
      obligations in accordance with Section 11.4(b) of this Agreement. Upon the
      consummation of any assignment to a Purchaser pursuant to this
      Section 11.4(c), the transferor Lender, the Administrative Agent and the
      Borrower shall make appropriate arrangements so that replacement Revolving
      Notes
      and Alternative Currency Notes, if applicable, are issued to such transferor
      Lender and new Revolving Notes and Alternative Currency Notes or, as
      appropriate, replacement Revolving Notes and Alternative Currency Notes, are
      issued to such Purchaser, in each case in principal amounts reflecting their
      respective Commitments and Alternative Currency Sublimits, as adjusted pursuant
      to such assignment.

     

    (d) Any
      Lender may at any time pledge or assign all or any portion of its rights under
      the Loan Documents 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 assignment or enforcement thereof shall release Lender from its
      obligations under any of the Loan Documents.

     

    11.5 Successors
      and Assigns.
      Borrower, Lenders, Administrative Agent, Syndication Agent and Co-Documentation
      Agent as used herein shall include the legal representatives, successors and
      assigns of those parties.

     

    11.6 Notices.
      Any
      notice or demand to be given hereunder shall be in writing, unless otherwise
      expressly provided herein and shall be deemed to have been given or made when
      delivered by hand or facsimile, and one (1) Business Day after being delivered
      to a courier for express delivery, to the address below, or three (3) Business
      Days after being deposited in an official depository

     

    

    
      
        
           

        

        
          -99-

          
            

          

        

        
           

        

      

    

    

    maintained
      by the United States Post Office for the collection of mail, postage prepaid
      and
      by registered or certified mail, return receipt requested, and addressed as
      follows:

     

    
      
        	
                To
                  the Borrower -

              	
                Moog
                  Inc.

              
	 	
                Jamison
                  Road and Seneca Street

              
	 	
                East
                  Aurora, NY 14052-0018

              
	 	
                Attn:
                  Timothy P. Balkin, Treasurer

              
	 	
                Facsimile
                  No.: 716-652-2000

              
	 	
                Telephone
                  No.: 716-687-4457

              
	 	 
	
                With
                  a copy to -

              	
                Hodgson
                  Russ LLP

              
	
                (which
                  shall not

              	
                One
                  M&T Plaza, Suite 2000

              
	
                constitute
                  notice)

              	
                Buffalo,
                  NY 14203-2391

              
	 	
                Attn:
                  Victoria J. Saxon, Partner

              
	 	
                Facsimile
                  No.: 716-848-1755

              
	 	
                Telephone
                  No.: 716-849-0349

              
	 	 
	
                To
                  the Administrative 

              	
                HSBC
                  Bank USA, National Association

              
	
                Agent-

              	
                Commercial
                  Banking Department

              
	 	
                One
                  HSBC Center

              
	 	
                Buffalo,
                  NY 14203

              
	 	
                Attn:
                  John G. Tierney, First Vice President

              
	 	
                Facsimile
                  No.: 716-841-0962

              
	 	
                Telephone
                  No.: 716-855-0384

              
	 	 
	
                With
                  a copy to - 

              	
                Phillips
                  Lytle LLP 

              
	
                (which
                  shall not

              	
                3400
                  HSBC Center

              
	
                constitute
                  notice)

              	
                Buffalo,
                  New York 14203

              
	
                 

              	
                Attn:
                  Raymond H. Seitz, Partner

              
	 	
                Facsimile
                  No.: 716-852-6100

              
	 	
                Telephone
                  No.: 716-847-7065

              

      

    

    

    Notices
      and other communications to the Lenders hereunder may be delivered or furnished
      by electronic communications pursuant to procedures approved by the
      Administrative Agent; provided that
      the
      foregoing shall not apply to notices pursuant to Article II unless otherwise
      agreed by the Administrative Agent and the applicable Lender. The Administrative
      Agent or the Borrower may in its discretion, agree to accept notices and other
      communications to it hereunder by electronic communications pursuant to
      procedures approved by it; provided that
      approval
      of such procedures may be limited to particular notices or
      communications.

    

    11.7 Governing
      Law.
      This Agreement, the transactions described herein and the obligations of the
      Lenders, the Administrative Agent and the Borrower shall be construed under,
      and
      governed by, the internal laws of the State of New York without regard to
      principles of conflicts of laws.

    
      
         

      

      
        -100-

        
          

        

      

      
         

      

    

     

    11.8 Counterparts.
      This
      Agreement may be executed in any number of counterparts and by the
      Administrative Agent, the Lenders and the Borrower on separate counterparts,
      each of which when so executed and delivered shall be an original, but all
      such
      counterparts shall together constitute one and the same Agreement.

     

    11.9 Titles.
      Titles
      to the sections of this Agreement are solely for the convenience of the
      Administrative Agent, the Lenders and the Borrower, and are not an aid in the
      interpretation of this Agreement or any part thereof.

     

    11.10 Inconsistent
      Provisions.
      The
      terms of this Agreement and any related agreements, instruments or other
      documents shall be cumulative except to the extent that they are specifically
      inconsistent with each other, in which case the terms of this Agreement shall
      prevail.

     

    11.11 Course
      of Dealing.
      Without
      limitation of the foregoing, the Administrative Agent and the Lenders shall
      have
      the right, but not the obligation, at all times to enforce the provisions of
      this Agreement and all other documents executed in connection herewith in strict
      accordance with their terms, notwithstanding any course of dealing or
      performance by the Lenders or the Administrative Agent in refraining from so
      doing at any time and notwithstanding any custom in the banking trade. Any
      delay
      or failure by the Lenders or the Administrative Agent at any time or times
      in
      enforcing its rights under such provisions in strict accordance with their
      terms
      shall not be construed as having created a course of dealing or performance
      modifying or waiving the specific provisions of this Agreement.

     

    11.12 USA
      Patriot Act Notification.
      Each
      Lender hereby notifies the Borrower that pursuant to the requirements of the
      USA
      Patriot Act (Title III of Pub. L. 107-56), such Lender is
      required to obtain, verify and record information that identifies Borrower,
      which information includes the name and address of such Borrower and other
      information that will allow such Lender to identify such Borrower in accordance
      with the USA Patriot Act (collectively, the “Customer Identification
      Materials”). Borrower has delivered to the Administrative Agent, and the
      Administrative Agent acknowledges receipt from the Borrower of, the Customer
      Identification Materials requested by the Administrative Agent to

    

    
      
        
           

        

        
          -101-

          
            

          

        

        
           

        

      

    

    

    satisfy
      the Administrative Agent’s regulatory requirements with respect thereto.
      Borrower consents to the dissemination of such Customer Identification Materials
      by the Administrative Agent to each Lender.

     

    11.13 Judgment
      Currency.
      This is
      a loan transaction in which the specification of Pounds Sterling, Euro, Japanese
      Yen or Dollars is of the essence, and the Applicable Currency shall in each
      instance be the currency of account and payment in all instances. A payment
      obligation in one currency hereunder (the “Original Currency”) shall not be
      discharged by an amount paid in another currency (the “Other Currency”), whether
      pursuant to any judgment expressed in or converted into any Other Currency
      or in
      another place except to the extent that such tender or recovery results in
      the
      effective receipt by a lender, or the Administrative Agent of the full amount
      of
      the Original Currency payable to such party. If for the purpose of obtaining
      judgment in any court it is necessary to convert a sum due hereunder in the
      Original Currency into the Other Currency, the rate of exchange that shall
      be
      the applicable Spot Rate. The obligation of the Borrower and the Guarantors
      in
      respect of any such sum due from it to the Agent, any Issuing Bank or any Lender
      under any Loan Document (each an “Entitled Person”) shall, notwithstanding the
      rate of exchange actually applied in rendering such judgment, be discharged
      only
      to the extent that on the Business Day following receipt by such Entitled Person
      of any sum adjudged to be due hereunder in the Other Currency such Entitled
      Person may in accordance with normal banking procedures purchase the Original
      Currency with the amount of the judgment currency so adjudged to be due; and
      the
      Borrower, as a separate obligation and notwithstanding any such judgment, agrees
      to indemnify such Entitled Person against, and to pay such Entitled Person
      on
      demand, in the Original Currency, the amount (if any) by which the sum
      originally due to such Entitled Person in the Original Currency hereunder
      exceeds the amount of the Other Currency so purchased.

     

    11.14 CONSENT
      TO JURISDICTION.
      BORROWER, EACH OF THE AGENTS AND EACH LENDER, AGREES THAT ANY ACTION OR
      PROCEEDING TO ENFORCE OR ARISING OUT OF THIS AGREEMENT MAY BE COMMENCED IN
      THE
      SUPREME COURT OF NEW YORK IN ERIE COUNTY, OR IN THE UNITED STATES DISTRICT
      COURT
      FOR THE WESTERN DISTRICT OF NEW YORK. BORROWER WAIVES PERSONAL SERVICE OF
      PROCESS AND AGREES THAT A SUMMONS AND COMPLAINT COMMENCING AN ACTION OR
      PROCEEDING IN ANY SUCH COURT SHALL BE PROPERLY SERVED AND SHALL CONFER PERSONAL
      JURISDICTION IF SERVED BY REGISTERED OR CERTIFIED MAIL TO THE BORROWER, AT
      THE
      ADDRESS SET FORTH AT THE BEGINNING OF THIS AGREEMENT, OR AS PROVIDED BY THE
      LAWS
      OF THE STATE OF NEW YORK OR THE UNITED STATES.

     

    11.15 JURY
      TRIAL WAIVER.
      BORROWER, EACH OF THE AGENTS AND EACH LENDER, HEREBY KNOWINGLY, VOLUNTARILY,
      AND
      INTENTIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY THEY MAY HAVE IN ANY ACTION
      OR
      PROCEEDING, IN LAW OR IN EQUITY, IN CONNECTION WITH THIS AGREEMENT OR ANY LOAN
      DOCUMENT OR THE TRANSACTIONS RELATED HERETO. BORROWER REPRESENTS AND WARRANTS
      THAT NEITHER ANY REPRESENTATIVE OF THE AGENTS OR ANY LENDER NOR THE AGENTS
      NOR
      ANY LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE AGENTS OR ANY
      LENDER WILL NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THIS JURY TRIAL
      WAIVER. BORROWER ACKNOWLEDGES THAT THE AGENTS AND THE LENDERS HAVE BEEN INDUCED
      TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE PROVISIONS OF THIS
      SECTION.

     

    
      
         

      

      
        -102-

        
          

        

      

      
         

      

    

     

     

    [SIGNATURE
      PAGES FOLLOW]

    
      
         

      

      
        -103-

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Agreement to be signed by their duly authorized
      officers all as of the 25th day of October, 2006.

    

    MOOG
      INC., as the Borrower

    

    By:_______________________________

    Name: Robert
      R. Banta

    Title: Executive
      Vice President

    

    

    HSBC
      BANK USA, NATIONAL 

    ASSOCIATION,
      as a Lender, the

    Swingline
      Lender and an Issuing Bank

    

    By:______________________________

    Name: John
      G. Tierney

    Title: First
      Vice President

    

    

    HSBC
      BANK USA, NATIONAL

    ASSOCIATION,
      as Administrative Agent 

    and
      Arranger

    

    By:______________________________

    Name: John
      G. Tierney

    Title: First
      Vice President

    

    

    

    

    

    Signature
      Page to Moog Inc. Loan Agreement

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

    

    MANUFACTURERS
      AND TRADERS TRUST COMPANY,
      as Syndication Agent and as a Lender

    

    By:______________________________________

    Name: Mark
      E. Hoffman

    Title: Vice
      President

    

    

    BANK
      OF AMERICA, N.A.,

    as
      Co-Documentation Agent and as a Lender

    

    By:___________________________________

    Name: Colleen
      M. O’Brien

    Title: Vice
      President

    

    

    JPMORGAN
      CHASE BANK, N.A.,

    as
      Co-Documentation Agent and as a Lender

    

    By:___________________________________

    Name: Michael
      E. Wolfram

    Title: Vice
      President

    

    
 

    

    

    Signature
      Page to Moog Inc. Loan Agreement

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    CITIZENS
      BANK OF PENNSYLVANIA,

    as
      a Lender and as an Issuing Bank

    

    By:___________________________________

    Name:
      Edward J. Kloecker Jr.

    Title:
      Senior Vice President

    

    

    BANK
      OF TOKYO-MITSUBISHI UFJ

    TRUST
      COMPANY, as a Lender

    

    By:___________________________________

    Name:
      Lillian Kim

    Title: 
      Vice President

    

    

    SOCIETE
      GENERALE, as a Lender

    

    By:_________________________________

    Name:
      R.D. Boyd Harman

    Title:
      Vice President

    

    

    WELLS
      FARGO BANK, N.A., as a Lender

    

    By:___________________________________

    Name:
      Thomas J. Grys

    Title:
      Vice President

    

    

    PNC
      BANK, NATIONAL ASSOCIATION,

    as
      a Lender

    

    By:_________________________________

    Name:
      Doreen K. Casey

    Title:
      Vice President

    

    

    

    

    

    

    Signature
      Page to Moog Inc. Loan Agreement

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    COMERICA
      BANK, as a Lender

    

    By:___________________________________

    Name: Sarah
      R. West

    Title: Assistant
      Vice President

    

    

    NATIONAL
      CITY BANK, as a Lender

    

    By:___________________________________

    Name: Susan
      J. Dimmick

    Title: Vice
      President

    

    

    FIFTH
      THIRD BANK, as a Lender

    

    By:___________________________________

    Name: Jim
      Janovsky

    Title: Vice
      President

    

    

    NORTHERN
      TRUST, as a Lender

    

    By:____________________________________

    Name: Ashish
      S. Bhagwat

    Title: Vice
      President

    

    

    FIRST
      NIAGARA BANK

    

    By:____________________________________

    Name: John
      R. Cinquino

    Title: First
      Vice President

    

    

    
 

    Signature
      Page to Moog Inc. Loan Agreement

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    EXHIBIT
      A

    

    REPLACEMENT
      REVOLVING NOTE

    

    Buffalo,
      New York

    $_____________

    October
      25, 2006

    

    FOR
      VALUE
      RECEIVED, the undersigned, MOOG
      INC. (“Borrower”)
      hereby unconditionally promises to pay, on or before October 25, 2011, to
      the order of _____________________ (“Lender”) at the Administrative Agent’s
      Commercial Banking Department’s office at One HSBC Center, Buffalo, New York
      14203, or at the holder’s option, at such other place as may be designated by
      the holder, in lawful money of the United States of America, a principal sum
      equal to the lesser of _____________________________________
      ($__________________) or the aggregate unpaid principal amount of all Revolving
      Loans made by Lender to the Borrower from time to time under a Second Amended
      and Restated Loan Agreement, dated of as of October 25, 2006, among the
      Borrower, HSBC Bank USA, National Association as administrative agent, for
      itself, the Lender and other lending institutions and issuing banks now or
      hereafter parties thereto, as the same may hereafter be amended, supplemented,
      renewed, restated, replaced or otherwise modified from time to time (“Loan
      Agreement”) as evidenced by the inscriptions made on the schedule attached
      hereto, or any continuation thereof (“Schedule”). The Borrower further promises
      to pay interest on the unpaid principal amount hereof from time to time at
      the
      rates and at such times as are specified in the Loan Agreement. All capitalized
      terms used herein and not otherwise defined herein shall have the meanings
      specified in the Loan Agreement.

    

    The
      Lender and each holder of this Note are authorized to inscribe on the Schedule,
      the date of the making of each Revolving Loan, the amount of each Revolving
      Loan, the applicable Rate Options and Interest Periods, all payments on account
      of principal and the aggregate outstanding principal balance of this Note from
      time to time unpaid. Each entry set forth on the Schedule shall be prima facie
      evidence of the facts so set forth. No failure by the Lender or any holder
      of
      this Note to make, and no error in making, any inscriptions on the Schedule
      shall affect Borrower’s obligation to repay the full principal amount loaned to
      or for the account of Borrower, or the Borrower’s obligation to pay interest
      thereon at the agreed upon rate.

    

    If
      any
      payment on this Note becomes due and payable on a day other than a Business
      Day,
      the maturity thereof shall be extended to the next succeeding Business Day,
      and
      the Borrower will pay interest thereon at the then applicable rate until the
      date of actual receipt of such installment by the holder of this
      Note.

    

    No
      failure by the holder to exercise, and no delay in exercising, any right or
      power hereunder shall operate as a waiver thereof, nor shall any single or
      partial exercise by the holder of any right or powers hereunder preclude any
      other or further exercise thereof or the exercise of any other right or power.
      The rights and remedies of the holder as herein specified

    

    
      
        
           

        

        
          A-1

          
            

          

        

        
           

        

      

    

    

    are
      cumulative and not exclusive of any other rights or remedies which the holder
      may otherwise have.

    

    No
      modification, rescission, waiver, release or amendment of any provision of
      this
      Note shall be made except by a written agreement subscribed by a duly authorized
      officer of the Borrower and the holder hereof.

    

    Borrower
      waives diligence, presentment, protest and demand, and also notice of protest,
      demand, dishonor and nonpayment of this Note.

    

    This
      Note
      evidences a borrowing under the Loan Agreement to which reference is hereby
      made
      with respect to interest rate options and periods, prepayments of principal
      hereof prior to the maturity hereof upon the terms and conditions therein
      specified, and rights of acceleration of the principal hereof on the occurrence
      of certain events. The obligations of the Borrower under this Note, and the
      obligations of the Guarantors under the Loan Documents, are secured by the
      Collateral referred to in the Security Documents.

    

    Borrower
      agrees to pay on demand all reasonable costs and expenses incurred by the holder
      in enforcing this Note or in collecting the indebtedness evidenced hereby,
      including, without limitation, if the holder retains counsel for any such
      purpose, reasonable attorneys’ fees and expenses.

    

    This
      Note
      shall be construed under, and governed by, the internal laws of the State of
      New
      York without regard to principles of conflicts of laws.

    

    

    MOOG
      INC.

    

    By:
      ____________________________________

    Name:
      

    Title:

    
      
         

      

      
        A-2

        
          

        

      

      
         

      

    

     

    SCHEDULE

    

    LOANS
      AND PAYMENTS OF PRINCIPAL

     

    
      
        
          	
                  TYPE
                    OF LOAN

                	
                  DATE
                    LOAN MADE, CON-TINED OR CONVERTED

                	
                  AMOUNT
                    OF LOAN MADE, CONTINUED OR CONVERTED

                	
                  INTEREST
                    PERIOD DATES

                	
                  DUE
                    DATE

                	
                  AMOUNT
                    OF PRINCIPAL PAID OR PREPAID

                	
                  AGGREGATE
                    UNPAID PRINCIPAL BALANCE

                	
                  NOTATION
                    MADE BY AND DATE

                
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

        

      

    

     

    
      
         

      

      
        A-3

        
          

        

      

      
         

      

    

     

    EXHIBIT
      B

    

    ALTERNATIVE
      CURRENCY NOTE

    

    

    Dated:
      October 25, 2006

    $_______________

    (Assigned
      Dollar Value)

    

    

    FOR
      VALUE
      RECEIVED, the undersigned, MOOG
      INC.,
      a New
      York corporation (“Borrower”), HEREBY PROMISES TO PAY to the order of
      ______________ ______________________ (the “Lender”) for the account of its
      Applicable Lending Office (as defined in the Loan Agreement referred to below)
      the aggregate principal amount of the Alternative Currency Loans (as defined
      below) owing to the Lender by the Borrower on the Revolving Credit Maturity
      Date
      pursuant to a Second Amended and Restated Loan Agreement, dated as of
      October 25, 2006 among the Borrower, HSBC Bank USA, National Association as
      administrative agent, for itself, the Lender and other lending institutions
      and
      issuing banks now or hereafter parties thereto, as the same may hereafter be
      amended, supplemented, renewed, restated, replaced or otherwise modified from
      time to time (“Loan Agreement”). All capitalized terms used herein and not
      otherwise defined herein shall have the meanings specified in the Loan
      Agreement.

     

    The
      Borrower promises to pay interest on the unpaid principal amount of each
      Alternative Currency Loan from the date of such Alternative Currency Loan until
      such principal amount is paid in full, at such interest rates, and payable
      at
      such times, as are specified in the Loan Agreement.

     

    The
      Borrower acknowledges and agrees that each Alternative Currency Loan shall
      be
      repaid or prepaid, as the case may be, by the Borrower in the Alternative
      Currency in which such Alternative Currency Loan was made, regardless of whether
      the Dollar Equivalent thereof at the time of payment is less than, equal to
      or
      greater than the Alternative Currency Commitment of the Lender. Both principal
      and interest are payable in the Alternative Currency in which each respective
      Alternative Currency Loan evidenced hereby was made, to HSBC Bank USA, National
      Association, as Administrative Agent for the Lenders, at One HSBC Center,
      Buffalo, New York 14202, Attention: Commercial Banking Department, in same
      day funds customary for the settlement of international transactions in such
      Alternative Currency. Each Alternative Currency Loan owing to the Lender by
      the
      Borrower and the maturity thereof, and all payments made on account of principal
      thereof, shall be recorded by the Lender and, prior to any transfer hereof,
      endorsed on the schedule attached hereto or any continuation thereof, which
      is
      part of this Note (“Schedule”).

     

    This
      promissory note is one of the Notes referred to in, and is entitled to the
      benefits of, the Loan Agreement. The Loan Agreement, among other things,
      (i) provides for the making of revolving loans denominated in an
      Alternative Currency (the “Alternative Currency

    

    
      
        
           

        

        
          B-1

          
            

          

        

        
           

        

      

    

    

    Loans”)
      by the Lender to the Borrower from time to time in an aggregate amount not
      to
      exceed at any time outstanding the Assigned Dollar Value of the Dollar amount
      first above mentioned, the indebtedness of the Borrower resulting from each
      such
      Alternative Currency Loan being evidence by this Note, and (ii) contains
      provisions for acceleration of the maturity hereof on the occurrence of certain
      events and also for prepayments on account of principal hereof prior to the
      maturity hereof upon the terms and conditions therein specified. The obligations
      of the Borrower under this Note, and the obligations of the Guarantors under
      the
      Loan Documents, are secured by the Collateral referred to in the Security
      Documents.

     

    Borrower
      agrees to pay on demand all reasonable costs and expenses incurred by the holder
      in enforcing this Note or in collecting the indebtedness evidenced hereby,
      including, without limitation, if the holder retains counsel for any such
      purpose, reasonable attorneys’ fees and expenses.

     

    This
      Note
      shall be construed under, and governed by, the internal laws of the State of
      New
      York without regard to principles of conflicts of laws.

     

    

    MOOG
      INC.

    

    By:
      ____________________________________

    Name:
      

    Title:
      

    
      
         

      

      
        B-2

        
          

        

      

      
         

      

    

     

    ALTERNATIVE
      CURRENCY LOANS

    AND
      PAYMENTS OF PRINCIPAL

    

    
      	
              DATE

            	
              AMOUNT
                OF ALTERNATIVE LOAN*

            	
              AMOUNT
                OF PRINCIPAL PAID OR PREPAID*

            	
              UNPAID
                PRINCIPAL BALANCE*

            	
              NOTATION
                MADE

              BY

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

     

    *Specify
      Alternative Currency

    
      
         

      

      
        B-3

        
          

        

      

      
         

      

    

     

    EXHIBIT
      C

    

    SWINGLINE
      NOTE

    

    

    Buffalo,
      New York

    $10,000,000.00

    October
      25, 2006

    

    

    FOR
      VALUE
      RECEIVED, the undersigned, MOOG
      INC.,
      a New
      York business corporation having its principal place of business at Jamison
      Road
      and Seneca Street, East Aurora, New York 14052-0018 (“Borrower”) promises to
      pay, ON
      DEMAND,
      to the
      order of HSBC
      BANK USA, NATIONAL ASSOCIATION
      (“Lender”) at the banking office of the Administrative Agent (as defined in the
      Loan Agreement, as hereinafter defined) at One HSBC Center, Buffalo, New York
      14203, in lawful money of the United States and in immediately available funds,
      the lesser of (i) the principal amount of Ten
      Million Dollars
      ($10,000,000)
      or (ii)
      the aggregate amount of all unpaid Swingline Loans made by Lender to Borrower
      as
      shown on the schedule on the reverse side of this Note or any continuation
      schedule (“Schedule”) together with interest as provided in the next paragraph.
      In this Note, any capitalized term not defined in this Note has the meaning
      defined in a Second Amended and Restated Loan Agreement, dated as of
      October 25, 2006, among the Borrower, HSBC Bank USA, National Association
      as administrative agent, for itself, the Lender and other lending institutions
      and issuing banks now or hereafter parties thereto, as the same may hereafter
      be
      amended, supplemented, renewed, restated, replaced or otherwise modified from
      time to time (“Loan Agreement”).

    

    From
      and
      including the date of this Note to but not including the date the outstanding
      principal amount of this Note is paid in full, the Borrower shall pay to the
      Administrative Agent for the account of the holder of this Note (“Holder”)
      interest on such outstanding principal amount at a rate per year that shall
      on
      each day prior to demand be equal to the Prime Rate from time to time in effect.
      After an unsatisfied demand for payment, this Note shall bear interest at a
      per
      annum rate of interest equal to 2% in excess of the Prime Rate from time to
      time
      in effect. In no event shall such interest be payable at a rate in excess of
      the
      maximum rate of interest permitted by applicable law. A payment of such interest
      shall become due on the first day of each calendar month, beginning on
      November 1, 2006 and on the date this Note is repaid in full. Interest
      shall be calculated on the basis of a 365-day year or 366-day year, as
      applicable, for the actual number of days elapsed. 

    

    The
      Holder is authorized to inscribe on the Schedule the date of each Swingline
      Loan
      made hereunder, each repayment of principal and the aggregate unpaid principal
      balance of this Note. Each entry set forth on the Schedule shall be prima facie
      evidence of the facts so set forth. No failure by the Holder to make, and no
      error by the Holder in making, any inscription on the Schedule shall affect
      the
      Borrower’s obligation to repay the full amount advanced on this Note to or for
      the account of the Borrower, or Borrower’s obligation to pay interest thereon at
      this agreed upon rate.

    

    
      
        
           

        

        
          C-1

          
            

          

        

        
           

        

      

    

     

    If
      any
      payment on this Note becomes due and payable on a day other than a Business
      Day,
      the maturity thereof shall be extended to the next succeeding Business Day,
      and
      the Borrower will pay interest thereon at the then applicable rate until the
      date of actual receipt of such installment by the holder of this
      Note.

    

    No
      failure by the holder to exercise, and no delay in exercising, any right or
      power hereunder shall operate as a waiver thereof, nor shall any single or
      partial exercise by the holder of any right or powers hereunder preclude any
      other or further exercise thereof or the exercise of any other right or power.
      The rights and remedies of the holder as herein specified are cumulative and
      not
      exclusive of any other rights or remedies which the holder may otherwise
      have.

    

    No
      modification, rescission, waiver, release or amendment of any provision of
      this
      Note shall be made except by a written agreement subscribed by a duly authorized
      officer of the Borrower and the holder hereof.

    

    Borrower
      waives diligence, presentment, protest and demand, and also notice of protest,
      demand, dishonor and nonpayment of this Note.

    

    This
      Note
      is the Swingline Note referred to in the Loan Agreement and is otherwise
      entitled to the benefits of the Loan Agreement. The obligations of the Borrower
      under this Note, and the obligations of the Guarantors under the Loan Documents,
      are secured by the Collateral referred to in the Security
      Documents.

    

    Borrower
      agrees to pay on demand all reasonable costs and expenses incurred by the holder
      in enforcing this Note or in collecting the indebtedness evidenced hereby,
      including, without limitation, if the holder retains counsel for any such
      purpose, reasonable attorneys’ fees and expenses.

    

    This
      Note
      shall be construed under, and governed by, the internal laws of the State of
      New
      York without regard to principles of conflicts of laws.

    

    

    MOOG
      INC.

    

    By:
      ____________________________________

    Name:
      

    Title:
      

    
      
         

      

      
        C-2

        
          

        

      

      
         

      

    

     

    SCHEDULE

    

    SWINGLINE
      LOANS AND PAYMENTS OF PRINCIPAL

    

    
      	
              DATE

            	
              PRINCIPAL

              AMOUNT

            	
              AMOUNT
                OF PRINCIPAL PAID OR REPAID

            	
              AGGREGATE
                UNPAID PRINCIPAL BALANCE

            	
              INSCRIPTION
                MADE BY

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

     

    
      
         

      

      
        C-3

        
          

        

      

      
         

      

    

     

    EXHIBIT
      D

    

    REQUEST
      CERTIFICATE

     

    The
      undersigned as Borrower hereby certifies to HSBC Bank USA, National Association,
      in accordance with the terms of a Second Amended and Restated Loan Agreement,
      dated as of October 25, 2006, among Moog Inc., HSBC Bank USA, National
      Association as administrative agent, for itself, the Lenders and other lending
      institutions and issuing banks now or hereafter parties thereto, as the same
      may
      hereafter be amended, supplemented, renewed, restated, replaced or otherwise
      modified from time to time (“Loan Agreement”) that:

    

    The
      undersigned requests or has requested a:

    

    (Check
      One)

    [
      ]
      Revolving Loan

    [
      ]
      Alternative Currency Loan

    

    to
      be
      made to Moog Inc. which will be a 

    

    (Check
      One)

    [
      ] new
      loan

    [
      ]
      conversion

    [
      ]
      continuation

    

    of
      a

    

    (Check
      One)

    [
      ] Libor
      Loan (Only option for Alternative Currency Loan)

    [
      ] ABR
      Loan

    

    to
      a or
      as a

    

    (Check
      One)

    [
      ] Libor
      Loan

    [
      ] ABR
      Loan

    

    
      
        
           

        

        
          D-1

          
            

          

        

        
           

        

      

    

    

    in
      the
      amount of $_____________ for an Interest Period, if applicable, of

    

    (Check
      One)

    [
      ] one
      month.

    [
      ] two
      months.

    [
      ] three
      months.

    [
      ] six
      months.

    

    The
      proposed loan/conversion/continuation is to be made on ____________, ____
      .

    

    The
      undersigned certifies that as of the date hereof:

    

    (i) there
      does not exist any Event of Default, Default or Material Adverse Effect;

    

    (ii) each
      representation and warranty made in the Agreement and any Loan Document to
      which
      the Borrower is a party and in any certificate, document or financial or other
      statement furnished at any time thereunder is true, correct and complete in
      all
      material respects with the same effect as though such representations and
      warranties had been made on the date hereof, except to the extent any such
      representation and warranty relates solely to an earlier date, or to the extent
      any such representation and warranty has been updated in a certificate executed
      by a Responsible Officer and received by the Administrative Agent before the
      date hereof; and

    

    (iii) the
      incurrence of the Indebtedness requested in this certificate is permitted by
      the
      terms of the Subordinated Indenture (as defined in the Loan Agreement) and
      will
      constitute Senior Debt and Designated Senior Debt under, and as defined in,
      the
      Subordinated Indenture.

    

    WITNESS
      the
      signature of the undersigned authorized signatory of the Borrower this ____
      day
      of _____________, ____.

    

    

    MOOG
      INC.

     

    

    By:______________________________________

              
      (Title)

    
      
         

      

      
        D-2

        
          

        

      

      
         

      

    

     

    EXHIBIT
      E

    

    COMPLIANCE
      CERTIFICATE

     

    The
      undersigned hereby certifies to the Administrative Agent and the Lenders, in
      accordance with the terms of a Second Amended and Restated Loan Agreement,
      dated
      as of October 25, 2006, among Moog Inc., HSBC Bank USA, National
      Association as administrative agent, for itself, the Lenders and other lending
      institutions and issuing banks now or hereafter parties thereto, as the same
      may
      hereafter be amended, supplemented, renewed, restated, replaced or otherwise
      modified from time to time (“Agreement”), that:

    

    A. General

    

    1. Capitalized
      terms not defined herein shall have the meanings set forth in the
      Agreement.

    

    2. Borrower
      has complied in all material respects with all the terms, covenants and
      conditions to be performed or observed by it contained in the Agreement and
      the
      Loan Documents, there exists no Event of Default or Default under the Agreement
      and there exists no Material Adverse Effect. 

    

    3. The
      representations and warranties contained in the Agreement, in any Loan Document
      to which the Borrower is a party and in any certificate, document or financial
      or other statement furnished at any time thereunder are true, correct and
      complete in all material respects with the same effect as though such
      representations and warranties had been made on the date hereof, except to
      the
      extent that any such representation and warranty relates solely to an earlier
      date (in which case such representation and warranty shall be true, correct
      and
      complete on and as of such earlier date).

    

    4. The
      Indebtedness under the Agreement constitutes Senior Debt and Designated Senior
      Debt under, and as defined in, the Subordinated Indenture, and the Agreement
      constitutes the “Credit Agreement” thereunder.

    

    B. Financial
      Covenants

    

    1. As
      of the
      date hereof or, for such period as may be designated below, the computations,
      ratios and calculations asset forth below, are true and correct:

    

    (a) Covenant
      6.1.
      Minimum
      Consolidated Net Worth

    as
      of
      _______________, 20__:

    

    Required
      Amount        $550.0
      Million

    

    
      
        
           

        

        
          E-1

          
            

          

        

        
           

        

      

    

    

    (b) Covenant
      6.2. Interest
      Coverage Ratio.

    

    (i) Consolidated
      EBITDA            
$_________

    

    (ii) Consolidated
      Capital Interest

    Expense                         
      $_________

    

    (iii) Ratio
      of
      (i) to (ii)    ___
      to
      1.0

    

    Required
      Ratio   
      3.0 to 1.0

    

    (c) Covenant
      6.3. Leverage
      Ratio.

    

    (i) Consolidated
      Net Debt           
$________

    

    (ii) Consolidated
      EBITDA           $________

    

    (iii) Ratio
      of
      (i) to (ii)    ___
      to
      1.0

    

    Required
      Ratio   
      3.5 to 1.0

    

    (d) Covenant
      6.4.
      Consolidated
      Capital Expenditures.

    

    Consolidated
      Capital Expenditures $________

    

    Required
      Amount        $________

    

    IN
      WITNESS WHEREOF,
      the
      undersigned, a Responsible Officer of the Borrower, has executed and delivered
      this certificate on behalf of the Borrower on ___________, 20__.

    

    MOOG
      INC.

    

    By_______________________________________

    Name:___________________________________

    Title:
      ___________________________________

     

    
      
         

      

      
        E-2

        
          

        

      

      
         

      

    

     

    EXHIBIT
      F

    

    ASSIGNMENT
      AND ASSUMPTION

    

    

    Reference
      is made to a Second Amended and Restated Loan Agreement, dated as of
      October 25, 2006, among Moog Inc., HSBC Bank USA, National Association as
      administrative agent, for itself, the Lenders and other lending institutions
      and
      issuing banks now or hereafter parties thereto, as the same may hereafter be
      amended, supplemented, renewed, restated, replaced or otherwise modified from
      time to time (“Loan Agreement”). Terms defined in the Loan Agreement are used
      herein as defined therein.

    

    The
      Assignor identified on Schedule 1 hereto (“Assignor”) and the Assignees
      identified on Schedule 1 hereto (each, an “Assignee”, and collectively, the
“Assignees”) agree as follows:

    

    1. Assignor
      hereby irrevocably sells and assigns to the Assignees, without recourse to
      Assignor, and each Assignee hereby irrevocably purchases and assumes from
      Assignor, without recourse to Assignor, as of the Effective Date (as defined
      below), the interest described on Schedule 1 hereto (each, an “Assigned
      Interest”, and collectively, the “Assigned Interests”) in and to Assignor’s
      rights and obligations under the Loan Agreement with respect to those credit
      facilities contained in the Loan Agreement as are set forth on Schedule 1
      hereto (“Assigned Facility”) in a principal amount for each Assigned Facility as
      set forth on Schedule 1 hereto.

    

    2. Assignor
      (i) represents and warrants that (A) it is legally authorized to enter
      into this Assignment and Assumption, (B) as of the date hereof, its
      Revolving Credit Commitment is $0 and its Alternative Currency Sublimit is
      ___,
      and its Applicable Percentage is 0% and its Applicable Percentage of the
      Alternative Currency Sublimit is ___, in each case after giving effect to the
      assignment contemplated hereby, (ii) makes no representation or warranty,
      express or implied and assumes no responsibility with respect to any statements,
      warranties or representations made in or in connection with the Loan Agreement,
      any other Loan Document or any other instrument or document furnished pursuant
      thereto, or the execution, legality, validity, enforceability, genuineness,
      sufficiency or value of the Loan Agreement, any other Loan Document or any
      other
      instrument or document furnished pursuant thereto or the attachment, perfection
      or priority of any security interest or mortgage, other than that it has not
      created any adverse claim upon the interest being assigned by it hereunder
      and
      that such interest is free and clear of any such adverse claim; and
      (iii) makes no representation or warranty and assumes no, responsibility
      with respect to the financial condition of the Borrower or any of its
      Subsidiaries or any other obligation or the performance or observance by the
      Borrower, any of its Subsidiaries or any other Person primarily or secondarily
      liable in respect of the Obligations under the Loan Agreement, any other Loan
      Document or any other instrument or document furnished pursuant hereto or
      thereto.

    

    
      
        
           

        

        
          F-1

          
            

          

        

        
           

        

      

    

    

    3. Each
      of
      the Assignees (i) represents and warrants that (A) it is duly and
      legally authorized to enter into this Assignment and Assumption, (B) the
      execution, delivery and performance of this Assignment and Assumption do not
      conflict with any provision of law or of the charter or by-laws of such
      Assignee, or of any agreement binding on such Assignee, and (C) all acts,
      conditions and things required to be done and performed and to have occurred
      prior to the execution, delivery and performance of this Assignment and
      Assumption, and to render the same the legal, valid and binding obligation
      of
      such Assignee, enforceable against it in accordance with its terms, have been
      done and performed and have occurred in due and strict compliance with all
      applicable laws; (ii) confirms that it has received a copy of the Loan
      Agreement, together with copies of the financial statements delivered pursuant
      to Section 5.2 thereof, if any, the other Loan Documents, 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 Assumption;
      (iii) agrees that it will, independently and without reliance upon the
      Assignor, the Agent or any other Lender and based on such documents and
      information as it shall deem appropriate at the time, continue to make its
      own
      credit decisions in taking or not taking action under the Loan Agreement, any
      other Loan Document or any other instrument or document furnished pursuant
      hereto or thereto; (iv) appoints and authorizes the Agent to take such
      action as agent on its behalf and to exercise such powers and discretion under
      the Loan Agreement, the Notes or any other instrument or document furnished
      pursuant hereto or thereto as are delegated to the Agent by the terms thereof,
      together with such powers as are incidental thereto; (v) acknowledges that
      it has made arrangements with the Assignor satisfactory to such Assignee with
      respect to its pro rata share of letter of credit fees in respect of outstanding
      Letters of Credit; and (vi) agrees that it will be bound by the provisions
      of the Loan Agreement and will perform in accordance with its terms all the
      obligations which by the terms of the Loan Agreement are required to be
      performed by it as a Lender including, if it is organized under the laws of
      a
      jurisdiction outside the United States of America, its obligation pursuant
      to
      Section 9.18 of the Loan Agreement to deliver the forms prescribed by the
      Internal Revenue Service of the United States certifying as to such Assignee’s
      exemption from United States withholding taxes with respect to all payments
      to
      be made to such Assignee under the Loan Agreement, or such other documents
      as
      are necessary to indicate that all such payments are subject to such tax at
      a
      rate reduced by an applicable tax treaty.

    

    4. On
      the
      Effective Date (as defined below), the Assignor shall return to the Borrower
      the
      Revolving Credit Note and the Alternative Currency Note payable to Assignor
      which is being changed as the result of this Assignment and Assumption, stamped
      “Replaced”.

    

    5. The
      effective date for this Assignment and Assumption shall be the Effective Date
      of
      the Assignment described in Schedule 1 hereto (the “Effective Date”).
      Schedule 2.1 to the Loan Agreement shall thereupon be replaced by a new
      Schedule 2.1 in the form annexed hereto.

    

    6. From
      and
      after the Effective Date, the Agent shall make all payments in respect of the
      Assigned Interests (including payments of principal, interest, fees and other
      amounts) to the Assignees that accrue subsequent to the Effective Date. The
      Assignor and the

    

    
      
        
           

        

        
          F-2

          
            

          

        

        
           

        

      

    

    

    Assignees
      shall make directly between themselves any appropriate adjustments in payments
      for periods prior to the Effective Date by the Agent or with respect to the
      making of this assignment.

    

    7. From
      and
      after the Effective Date, (i) each of the Assignees shall be a party to the
      Loan Agreement and, to the extent provided in this Assignment and Assumption,
      have the rights and obligations of a Lender thereunder and under the Notes
      and
      shall be bound by the provisions thereof, and (ii) the Assignor shall, to
      the extent provided in this Assignment and Assumption, relinquish its rights
      and
      be released from its obligations under the Loan Agreement. Notwithstanding
      anything to the contrary contained herein, the Assignor shall retain its right
      to be indemnified pursuant to Section 8.2 of the Loan Agreement with
      respect to any claims or actions arising prior to the Effective
      Date.

    

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

    

    

    

    

    [SIGNATURE
      PAGE FOLLOWS]

    

    
      
        
           

        

        
          F-3

          
            

          

        

        
           

        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Assignment and Assumption to be executed as
      of
      __________, 20__ by their respective duly authorized officers.

    

    ASSIGNOR:

    

    

    

    By:
      ________________________________

    Name:

    Title:

    

    

    ASSIGNEE:

    

    

    

    By:
      ________________________________

    Name:

    Title:

     

    
      
         

      

      
        F-4

        
          

        

      

      
         

      

    

     

    SCHEDULE
      1

    to

    Assignment
      and Assumption

    

    

    I. As
      to the
      Revolving Credit Facility in respect of which an interest is being
      assigned:

    Percentage
      interest assigned: ________%

    Assignee’s
      Revolving Credit Commitment: $_______

    Aggregate
      outstanding principal amount of

    Revolving
      Loans assigned: $_______

    Principal
      amount of Revolving Note

    payable
      to Assignee: $_______

    Principal
      amount of Revolving Note

    payable
      to Assignor: $_______

    

    II. As
      to the
      Alternative Currency Sublimit in respect of which an interest is being
      assigned:

    Percentage
      interest assigned: ________%

    Assignee’s
      Alternative Currency Sublimit: $_______

    Aggregate
      outstanding principal amount of

    Alternative
      Currency Loans assigned: £_______

    Euro________

    Yen________

    

    
      
        
           

        

        
          -1-

          
            

          

        

        
           

        

      

    

    

    Principal
      amount of Alternative Currency

    Note
      payable to Assignee *: $_______

    Principal
      amount of Alternative Currency

    Note
      payable to Assignor *: $_______

    *Assigned
      Dollar Value

    Effective
      Date of Assignment ___________________,
      200_

    

    

    [NAME
      OF ASSIGNOR], as Assignor [NAME
      OF ASSIGNEE], as Assignee

    

    By:___________________________ By:_____________________________

    

    Title:__________________________ Name:___________________________

    

    Dated:___________________,
      200_ Dated:_______________________,
      200_

    

    

    Domestic
      Lending Office: Libor
      Lending Office:

    

    _____________________________ ______________________________

    _____________________________ ______________________________

    _____________________________ ______________________________

    

    

    Accepted
      this ____ day of

    _______________,
      200_

    

    MOOG INC.,
      as Borrower

    

    By:________________________________

    Name:______________________________

    Title:_______________________________

    

    HSBC
      BANK USA, NATIONAL ASSOCIATION,

    as
      Administrative Agent

    

    By:_________________________________

    Name:_______________________________

    Title:________________________________

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    SCHEDULE
      1

    

    PENSION
      PLANS

    

    

    

    1. The
      Moog
      Inc. Employees’ Retirement Plan; and

    

    2. The
      Flo-Tork, Inc. Defined Benefit Plan and Trust.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SCHEDULE
      2.1

    

    LENDERS’
      COMMITMENTS 

    

    
      	
              Lender

            	 	
              Commitment

              (In
                Millions)

            	 	
              Applicable 

              Percentage

            
	 	 	 	 	 
	
              HSBC
                Bank USA, National Association

            	 	
              $85.0

            	 	
              14.1666666666667%

            
	
              Manufacturers
                and Traders Trust Company

            	 	
              $85.0

            	 	
              14.1666666666667%

            
	
              Bank
                of America, N.A.

            	 	
              $70.0

            	 	
              11.6666666666667%

            
	
              JPMorgan
                Chase Bank, N.A.

            	 	
              $70.0

            	 	
              11.6666666666667%

            
	
              Citizens
                Bank of Pennsylvania

            	 	
              $50.0

            	 	
              8.33333333333333%

            
	
              Bank
                of Tokyo-Mitsubishi UFJ Trust
                Company

            	 	
              $35.0

            	 	
              5.83333333333333%

            
	
              Societe
                Generale

            	 	
              $35.0

            	 	
              5.83333333333333%

            
	
              Wells
                Fargo Bank, N.A.

            	 	
              $30.0

            	 	
              5.00000000000000%

            
	
              PNC
                Bank, National Association

            	 	
              $25.0

            	 	
              4.16666666666667%

            
	
              Comerica
                Bank

            	 	
              $25.0

            	 	
              4.16666666666667%

            
	
              National
                City Bank

            	 	
              $25.0

            	 	
              4.16666666666667%

            
	
              Fifth
                Third Bank

            	 	
              $25.0

            	 	
              4.16666666666667%

            
	
              Northern
                Trust

            	 	
              $20.0

            	 	
              3.33333333333333%

            
	
              First
                Niagara Bank

            	 	
              $20.0

            	 	
              3.33333333333333%

            
	
              TOTAL

            	 	
              $600.0

            	 	
              100%

            

    

    

    

    
      	
               

               

              Lender

            	 	
              Amount
                of Alternative

              Currency
                Sublimit

              (In
                Millions)

            	 	
               

              Applicable
                

              Percentage

            
	 	 	 	 	 
	
              HSBC
                Bank USA, National Association

            	 	
              $10.625

            	 	
              14.1666666666667%

            
	
              Manufacturers
                and Traders Trust Company

            	 	
              $10.625

            	 	
              14.1666666666667%

            
	
              Bank
                of America, N.A.

            	 	
              $8.750

            	 	
              11.6666666666667%

            
	
              JPMorgan
                Chase Bank, N.A.

            	 	
              $8.750

            	 	
              11.6666666666667%

            
	
              Citizens
                Bank of Pennsylvania

            	 	
              $6.250

            	 	
              8.33333333333333%

            
	
              Bank
                of Tokyo-Mitsubishi UFJ Trust
                Company

            	 	
              $4.375

            	 	
              5.83333333333333%

            
	
              Societe
                Generale

            	 	
              $4.375

            	 	
              5.83333333333333%

            
	
              Wells
                Fargo Bank, N.A.

            	 	
              $3.750

            	 	
              5.00000000000000%

            
	
              PNC
                Bank, National Association

            	 	
              $3.125

            	 	
              4.16666666666667%

            
	
              Comerica
                Bank

            	 	
              $3.125

            	 	
              4.16666666666667%

            
	
              National
                City Bank

            	 	
              $3.125

            	 	
              4.16666666666667%

            
	
              Fifth
                Third Bank

            	 	
              $3.125

            	 	
              4.16666666666667%

            
	
              Northern
                Trust

            	 	
              $2.500

            	 	
              3.33333333333333%

            
	
              First
                Niagara Bank

            	 	
              $2.500

            	 	
              3.33333333333333%

            
	
              TOTAL

            	 	
              $75.0

            	 	
              100%

            

    

    

    

    
      
        
           

        

        
          -1-

          
            

          

        

        
           

        

      

    

    

    Applicable
      Lending Offices:

    

    
      	
              Lender

            	
              Domestic
                Lending Office

            	
              Libor
                Lending Office

            
	
              HSBC
                Bank USA, National

              Association

            	
              One
                HSBC Center

              Buffalo,
                NY 14203

            	
              One
                HSBC Center

              Buffalo,
                NY 14203

            
	
              Manufacturers
                and Traders

              Trust
                Company

            	
              One
                Fountain Plaza

              12th
                Floor

              Buffalo,
                NY 14203

            	
              One
                Fountain Plaza

              12th
                Floor

              Buffalo,
                NY 14203

            
	
              Bank
                of America, N.A.

            	
              70
                Batterson Park Road

              Farmington,
                CT 06032

            	
              70
                Batterson Park Road

              Farmington,
                CT 06032

            
	
              JPMorgan
                Chase Bank, N.A.

            	
              10
                South Dearborn

              19th
                Floor

              Chicago,
                IL 60603

            	
              10
                South Dearborn

              19th
                Floor

              Chicago,
                IL 60603

            
	
              Citizens
                Bank of Pennsylvania

            	
              525
                William Penn Place

              Room
                153-2440

              Pittsburgh,
                PA 15219

            	
              100
                Sockanosett Crossroads

              Cranston,
                RI 02920

            
	
              Bank
                of Tokyo-

              Mitsubishi
                UFJ Trust 

              Company

            	
              1251
                Avenue of the Americas

              12th
                Floor

              New
                York, NY 10020

            	
              1251
                Avenue of the Americas

              12th
                Floor

              New
                York, NY 10022

            
	
              Societe
                Generale

            	
              1221
                Avenue of Americas

              12th
                Floor

              New
                York, NY 10022

            	
              1221
                Avenue of Americas

              12th
                Floor

              New
                York, NY 10022

            
	
              Wells
                Fargo Bank, N.A.

            	
              1700
                Lincoln Street

              Denver,
                CO 80203

            	
              1700
                Lincoln Street

              Denver,
                CO 80203

            
	
              PNC
                Bank, National

              Association

            	
              Two
                Tower Center Boulevard

              21st
                Floor

              East
                Brunswick, NJ 08816

            	
              Two
                Tower Center Boulevard

              21st
                Floor

              East
                Brunswick, NJ 08816

            
	
              Comerica
                Bank

            	
              One
                Detroit Center, 9th Floor

              500
                Woodward Avenue

              Detroit,
                MI 48226

            	
              One
                Detroit Center, 9th Floor

              500
                Woodward Avenue

              Detroit,
                MI 48226

            
	
              National
                City Bank

            	
              20
                Stanwix Street

              19th
                Floor

              Pittsburgh,
                PA 15222

            	
              20
                Stanwix Street

              19th
                Floor

              Pittsburgh,
                PA 15222

            
	
              Fifth
                Third Bank

            	
              600
                Superior Avenue East

              3rd
                Floor

              Cleveland,
                OH 44114

            	
              600
                Superior Avenue East

              3rd
                Floor

              Cleveland,
                OH 44114

            
	
              Lender

            	
              Domestic
                Lending Office

            	
              Libor
                Lending Office

            
	
              Northern
                Trust

            	
              50
                S. LaSalle

              Chicago,
                IL 60675

            	
              50
                S. LaSalle

              Chicago,
                IL 60675

            
	
              First
                Niagara Bank

            	
              726
                Exchange Street

              Suite
                900

              Buffalo,
                NY 14210

            	
              726
                Exchange Street

              Suite
                900

              Buffalo,
                NY 14210

            

    

    

    

    
      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

    

     

    
      	
              ISSUING
                BANKS’ COMMITMENT

            

    

     

    
      	 	 	 
	
              Issuing
                Banks

            	 	
              Letter
                of Credit

              Commitment

            
	 	 	 
	
              HSBC
                Bank USA, National Association and

              Citizens
                Bank of Pennsylvania

            	 	
              For
                each Issuing Bank, $10,000,000 less the amount of Letters of Credit
                issued
                and outstanding by the other Issuing Bank

            
	 	 	 

    

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    SCHEDULE
      2.4

    

    EXISTING
      LETTERS OF CREDIT

    

    

    Issuing
      Bank - HSBC Bank USA, National Association

    

    
      	
               

              Letter
                of Credit No.

            	 	
              Date
                of

              Issue

            	 	
               

              Current
                Amount

            	 	
              Maturity

              Date

            	 	
               

              Beneficiary

            
	 	 	 	 	 	 	 	 	 
	
              SDC
                MTN543593

            	 	
              06/12/02

            	 	
              $4,242,262.00

            	 	
              06/30/07

            	 	
              Liberty
                Mutual Ins.

            
	
              SDC
                MTN546626

            	 	
              03/16/04

            	 	
              $776,968.00

            	 	
              03/01/07

            	 	
              Hanwha
                Corporation

            
	
              SDC
                MTN546627

            	 	
              03/16/04

            	 	
              $1,910,000.00

            	 	
              03/01/07

            	 	
              Hanwha
                Corporation

            
	
              SDC
                MTN547630

            	 	
              09/27/04

            	 	
              $536,733.00

            	 	
              09/24/07

            	 	
              Defense
                Procurement Agency

            
	
              SDC
                MTN548356

            	 	
              07/12/05

            	 	
              $1,542,915.00

            	 	
              08/15/07

            	 	
              ICICI

            
	
              SDC
                MTN548629

            	 	
              05/12/05

            	 	
              $126,000.00

            	 	
              12/31/06

            	 	
              The
                Government of the Arab Republic of Egypt

            
	
              SDC
                MTN550695

            	 	
              06/06/06

            	 	
              $379,701.00

            	 	
              06/15/07

            	 	
              Hermes
                Ingenieros SL

            
	
              SDC
                MTN551139

            	 	
              08/24/06

            	 	
              $749,977.50

            	 	
              10/01/07

            	 	
              The
                Government of the Arab Republic of Egypt

            
	
              SDC
                MTN551367

            	 	
              09/22/06

            	 	
              $1,074,174.00

            	 	
              10/05/07

            	 	
              HSBC
                Australia

            
	
              Total

            	 	
              9

            	 	
              $11,338,730.50

            	 	 	 	 

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SCHEDULE
      4.1

    

    SUBSIDIARIES

    

    

    (i)    Moog
      AG,
      incorporated in Switzerland, wholly-owned subsidiary with branch operation
      in
      Ireland

    

    (ii)    Moog
      Australia Pty. Ltd., incorporated in Australia, wholly-owned
      subsidiary

    

    (iii)    Moog
      do
      Brasil Controles Ltda., incorporated in Brazil, wholly-owned
      subsidiary

    

    
      	 	
              (a)

            	
              Moog
                de Argentina Srl, Incorporated in Argentina, wholly-owned subsidiary
                of
                Moog do Brasil Controles Ltda.

            

    

    

    (iv)    Moog
      Controls Corporation, incorporated in Ohio, wholly-owned subsidiary with branch
      operation in the Republic of the Philippines

    

    (v)    Moog
      Controls Hong Kong Ltd., incorporated in Peoples Republic of China, wholly-owned
      subsidiary

    

    
      	 	
              (a)

            	
              Moog
                Motion Controls (Shanghai) Co., Ltd., incorporated in Peoples Republic
                of
                China, wholly-owned subsidiary of Moog Controls Hong Kong
                Ltd.

            

    

    

    
      	 	
              (b)

            	
              Moog
                Control System (Shanghai) Co., Ltd., incorporated in Peoples Republic
                of
                China, wholly-owned subsidiary of Moog Controls Hong Kong
                Ltd.

            

    

    

    (vi)    Moog
      Controls (India) Private Ltd., incorporated in India, wholly-owned
      subsidiary

    

    (vii)    Moog
      Controls Ltd., incorporated in the United Kingdom, wholly-owned
      subsidiary

    

    
      	 	
              (a)

            	
              Moog
                Norden A.B., incorporated in Sweden, wholly-owned subsidiary of Moog
                Controls Ltd.

            

    

    

    
      	 	
              (b)

            	
              Moog
                OY, incorporated in Finland, wholly-owned subsidiary of Moog Controls
                Ltd.

            

    

    

    
      	 	
              (c)

            	
              Moog
                Components Group Limited, incorporated in the United Kingdom, wholly-owned
                subsidiary of Moog Controls Ltd.

            

    

    

    (viii)    Moog
      Europe Holdings y Cia, S.C.S., incorporated in Spain, wholly-owned
      subsidiary

     

    
      	 	
              (a)

            	
              Moog
                Holding GmbH KG, a partnership organized in Germany, wholly-owned
                subsidiary of Moog Europe Holdings y Cia,
                S.C.S.

            

    

    

    
      
        
           

        

        
          -1-

          
            

          

        

        
           

        

      

    

     

    
      	 	
              (1)

            	
              Moog
                GmbH, incorporated in Germany, wholly-owned subsidiary of Moog Holding
                GmbH KG

            

    

    

    
      	 	
              (1.a)

            	
              Moog
                Italiana S.r.l., incorporated in Italy, wholly-owned subsidiary of
                Moog
                GmbH

            

    

    

    
      	 	
              (2)

            	
              Moog
                Hydrolux Sarl, incorporated in Luxembourg, wholly-owned subsidiary
                of Moog
                Holding GmbH KG

            

    

    

    
      	 	
              (3)

            	
              Pro
                Control AG, incorporated in Switzerland, wholly-owned subsidiary
                of Moog
                Holding GmbH KG

            

    

    

    
      	 	
              (4)

            	
              Moog
                FCS BV, incorporated in the Netherlands, wholly-owned subsidiary
                of Moog
                Holding GmbH KG

            

    

    

    
      	 	
              (4.a)

            	
              Moog
                FCS Limited, incorporated in the United Kingdom, wholly-owned subsidiary
                of Moog FCS BV

            

    

    

    
      	 	
              (b)

            	
              Moog
                Verwaltungs GmbH, incorporated in Germany, wholly-owned subsidiary
                of Moog
                Europe Holdings y Cia, S.C.S.

            

    

    

    
      	 	
              (c)

            	
              Moog
                Ireland International Financial Services Centre Limited, incorporated
                in
                Ireland, wholly-owned subsidiary of Moog Europe Holdings y Cia,
                S.C.S.

            

    

    

    
      	 	
              (d)

            	
              Focal
                Technologies Corporation, incorporated in Canada, wholly-owned subsidiary
                of Moog Europe Holdings y Cia,
                S.C.S.

            

    

    

    (ix)    Moog
      FSC
      Ltd., incorporated in the Virgin Islands, wholly-owned subsidiary

    

    (x)    Moog
      Holland Aircraft Services BV, incorporated in Holland, wholly-owned
      subsidiary

    

    (xi)    Moog
      Japan Ltd., incorporated in Japan, wholly-owned subsidiary

    

    (xii)    Moog
      Korea Ltd., incorporated in South Korea, wholly-owned subsidiary

    

    (xiii)    Moog
      Sarl, incorporated in France, wholly-owned subsidiary, 95% owned by Moog Inc.;
      5% owned by Moog GmbH

    

    (xiv)    Moog
      Singapore Pte. Ltd., incorporated in Singapore, wholly-owned
      subsidiary

    

    
      	 	
              (a)

            	
              Moog
                Motion Controls Private Limited, incorporated in India, wholly-owned
                subsidiary of Moog Singapore Pte.
                Ltd.

            

    

    

    (xv)    Curlin
      Medical Inc., incorporated in Delaware, wholly-owned subsidiary

    

    
      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

    

    

    (xvi)    Flo-Tork
      Inc., incorporated in Delaware, wholly-owned subsidiary 

    

    (xvii)    Fundamental
      Technology Solutions, Inc. incorporated in Delaware, wholly-owned
      subsidiary.

    

    (xviii)    Moog
      Europe Holdings I LLC, a New York limited liability company, wholly-owned
      subsidiary

    

    (xix)    Moog
      Europe Holdings II LLC, a New York limited liability company, wholly-owned
      subsidiary.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    SCHEDULE
      4.3

    

    PENDING
      LITIGATION

    

    

    

    NONE.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SCHEDULE
      7.1

    `

    PERMITTED
      INDEBTEDNESS

    (Note
      - Numbers Represent 9/30/06 Balances)

    

    

    1. Existing
      loans and advances from Borrower to Foreign Subsidiaries ($ equivalents)
      *

    

      
        	
                -
                  Moog SCS (Spain)

              	 	
                $

              	
                8,139,543

              	 
	
                -
                  Focal Technologies (Canada)

              	 	
                $

              	
                20,511,713

              	 
	
                -
                  Moog India

              	 	
                $

              	
                667,755

              	 
	
                -
                  Moog do Brasil

              	 	
                $

              	
                507,146

              	 
	
                -
                  Moog Philippines

              	 	
                $

              	
                58,939,061

              	 

      

    

     

    
      	
              2.

            	
              Existing
                Obligations Related to Building 

            

    

    Financing
      ($ equivalents)

     

    
      
        	
                -
                  Korin VIE (Germany)

              	 	
                $

              	
                5,168,000

              	 
	
                -
                  Olorinus VIE (Germany)

              	 	
                $

              	
                320,000

              	 
	
                -
                  LocaFit (Italy)

              	 	
                $

              	
                3,848,000

              	 

      

       

    

    
      	
              3.

            	
              Existing
                Bank Facilities other than with the
                Lenders

            

    

     

    
      
        	
                -
                  Moog GmbH

              	 	
                $

              	
                10,888,742

              	 
	
                -
                  Moog Italiana S.r.l.

              	 	
                $

              	
                9,678,597

              	 
	
                -
                  Moog Sarl

              	 	
                $

              	
                207,898

              	 
	
                -
                  Moog Japan

              	 	
                $

              	
                5,500,085

              	 
	
                -
                  Moog Australia Pty. Ltd.

              	 	
                $

              	
                119,159

              	 
	
                -
                  Moog AG (Ireland)

              	 	
                $

              	
                402,317

              	 
	
                -
                  Moog IFSC Ltd.

              	 	
                $

              	
                12,674,000

              	 
	
                -
                  Moog Korea

              	 	
                $

              	
                2,113,048

              	 
	
                -
                  Moog India Controls

              	 	
                $

              	
                33,326

              	 

      

       

    

    
      	
              4.

            	
              Curlin
                Medical Inc. Note to Seller 

            

    

     

    
      
        	
                Re:
                  Purchase Price Holdback

              	 	
                $

              	
                12,000,000

              	 

      

       

    

    
      	
              5.

            	
              Certain
                Foreign Subsidiaries discount customers’ promissory notes with
                various
                banks from time to time. The terms of such agreements provide that
                the Foreign Subsidiary guarantee the promissory notes.
                *

            

    

    

     

    *
      Certain
      items listed hereon are listed solely for disclosure purposes and no inference
      should be drawn that such items are not otherwise permitted by the terms of
      the
      Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SCHEDULE
      7.2

    

    PERMITTED
      ENCUMBRANCES

    (Note
      - Numbers Represent 9/30/06 Balances)

     

    
      
        	
                Foreign
                  Liens

              	 	
                Lienholders

              	 	
                Amount

              
	 	 	 	 	 
	
                Moog
                  Germany (Buildings)

              	 	
                Korin
                  VIE

              	 	
                $5,168,000

              
	 	 	 	 	 
	 	 	
                Olorinus
                  VIE

              	 	
                $
                  320,000

              
	 	 	 	 	 
	
                Moog
                  Italiana (Building)

              	 	
                LocaFit

              	 	
                $2,306,000

              
	 	 	 	 	 
	
                Moog
                  Korea (Building)

              	 	
                HSBC
                  Korea

              	 	
                $1,902,000

              
	 	 	 	 	 
	
                Moog
                  India (Sales Branch)

              	 	
                HDFC
                  Bank

              	 	
                $
                  1,000

              
	 	 	 	 	 
	
                Moog
                  India Controls

              	 	 	 	
                $
                  33,000

              
	 	 	 	 	 
	
                Moog
                  Australia

              	 	
                ANZ
                  Bank

              	 	
                $
                  70,000

              
	 	 	 	 	 
	
                Liens
                  on assets of Foreign 

              	 	
                Various

              	 	
                See
                  Item 3

              
	
              	 	 	 	 

      

      Subsidiaries
        of Schedule 7.1 securing various bank facilities--See Item 3 on Schedule
        7.1

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    SCHEDULE
      7.3

    

    PERMITTED
      INVESTMENTS AND GUARANTIES

    (Note
      - Numbers Represent 9/30/06 Balances excluding any
      reserves)

     

    
      
        	
                1.

              	
                SimEx
                  Inc.

              	
                $1,000,000

              
	 	 	 
	
                2.

              	
                First
                  Wave Technologies

              	
                $
                  250,000

              
	 	 	 
	
                3.

              	
                FluidNet

              	
                $
                  600,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]