Document:

Exhibit 10.1

 

 

$300,000,000

 

AMENDED AND RESTATED CREDIT AGREEMENT

 

dated as of

 

9 June 2005

 

among

 

CARLISLE COMPANIES INCORPORATED,

 

The Banks Listed Herein

 

BANK OF AMERICA, N.A.,

SUNTRUST BANK, and

THE BANK OF TOKYO–MITSUBISHI, LTD., NY BRANCH

as co–documentation agents,

 

WACHOVIA BANK, N.A.

as syndication agent,

 

and

 

 

JPMorgan Chase Bank, N.A.

as Administrative Agent

 

J.P. Morgan Securities, Inc.

as Sole Lead Arranger and Sole Bookrunner

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE 1
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 1.01.
  Definitions

  	
   

  
	
   

  	
  SECTION 1.02.
  Accounting Terms and Determinations

  	
   

  
	
   

  	
  SECTION 1.03.
  Types of Borrowings

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2
  THE CREDITS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.01.
  Commitments to Lend

  	
   

  
	
   

  	
  SECTION 2.02.
  Notice of Committed Borrowing

  	
   

  
	
   

  	
  SECTION 2.03.
  Money Market Borrowings

  	
   

  
	
   

  	
  SECTION 2.04.
  Notice to Banks: Funding of Loans

  	
   

  
	
   

  	
  SECTION 2.05.
  Swingline Borrowings

  	
   

  
	
   

  	
  SECTION 2.06.
  Repayment of Loans; Evidence of Debt

  	
   

  
	
   

  	
  SECTION 2.07.
  Maturity of Loans

  	
   

  
	
   

  	
  SECTION 2.08.
  Interest Rates

  	
   

  
	
   

  	
  SECTION 2.09.
  Fees

  	
   

  
	
   

  	
  SECTION 2.10.
  Optional Termination or Reduction of Commitments

  	
   

  
	
   

  	
  SECTION 2.11.
  Mandatory Termination of Commitments

  	
   

  
	
   

  	
  SECTION 2.12.
  Optional Prepayments

  	
   

  
	
   

  	
  SECTION 2.13.
  General Provisions as to Payments

  	
   

  
	
   

  	
  SECTION 2.14.
  Funding Losses

  	
   

  
	
   

  	
  SECTION 2.15.
  Computation of Interest and Fees

  	
   

  
	
   

  	
  SECTION 2.16.
  Method of Electing Interest Rates

  	
   

  
	
   

  	
  SECTION 2.17.
  Letters of Credit

  	
   

  
	
   

  	
  SECTION 2.18.
  Increase of Commitments

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3 CONDITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.01.
  Closing

  	
   

  
	
   

  	
  SECTION 3.02.
  Borrowings

  	
   

  
	
   

  	
  SECTION 3.03.
  Effective Date Advances and Adjustments

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4 REPRESENTATIONS AND
  WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 4.01. Corporate Existence
  and Power

  	
   

  
	
   

  	
  SECTION 4.02. Corporate and
  Governmental Authorization; No Contravention

  	
   

  
	
   

  	
  SECTION 4.03. Binding Effect

  	
   

  
	
   

  	
  SECTION 4.04. Financial
  Information

  	
   

  
	
   

  	
  SECTION 4.05.
  Litigation

  	
   

  
	
   

  	
  SECTION 4.06.
  Compliance with ERISA

  	
   

  
	
   

  	
  SECTION 4.07. Environmental
  Matters

  	
   

  
	
   

  	
  SECTION 4.08. Taxes

  	
   

  
	
   

  	
  SECTION 4.09.
  Subsidiaries

  	
   

  
	
   

  	
  SECTION 4.10.
  No Regulatory Restrictions on Borrowing

  	
   

  
	
   

  	
  SECTION 4.11.
  Full Disclosure

  	
   

  

 

i

 

	
  ARTICLE 5 COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.01.
  Information

  	
   

  
	
   

  	
  SECTION 5.02.
  Payment of Obligations

  	
   

  
	
   

  	
  SECTION 5.03. Maintenance of
  Property; Insurance

  	
   

  
	
   

  	
  SECTION 5.04.
  Conduct of Business and Maintenance of Existence

  	
   

  
	
   

  	
  SECTION 5.05.
  Compliance with Laws

  	
   

  
	
   

  	
  SECTION 5.06. Inspection of Property,
  Books and Records

  	
   

  
	
   

  	
  SECTION 5.07. Mergers and Sales
  of Assets

  	
   

  
	
   

  	
  SECTION 5.08.
  Use of Proceeds

  	
   

  
	
   

  	
  SECTION 5.09.
  Negative Pledge

  	
   

  
	
   

  	
  SECTION 5.10. Subsidiary Debt
  Limitation

  	
   

  
	
   

  	
  SECTION 5.11.
  Leverage Ratio

  	
   

  
	
   

  	
  SECTION 5.12. Minimum
  Consolidated Net Worth

  	
   

  
	
   

  	
  SECTION 5.13. Transactions with
  Affiliates

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6 DEFAULTS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 6.01.
  Events of Default

  	
   

  
	
   

  	
  SECTION 6.02.
  Notice of Default

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7 THE AGENT

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 7.01. Appointment and
  Authorization

  	
   

  
	
   

  	
  SECTION 7.02.
  Administrative Agent and Affiliates

  	
   

  
	
   

  	
  SECTION 7.03. Action by
  Administrative Agent

  	
   

  
	
   

  	
  SECTION 7.04.
  Consultation with Experts

  	
   

  
	
   

  	
  SECTION 7.05.
  Liability of Administrative Agent

  	
   

  
	
   

  	
  SECTION 7.06. Indemnification

  	
   

  
	
   

  	
  SECTION 7.07. Credit Decision

  	
   

  
	
   

  	
  SECTION 7.08. Successor
  Administrative Agent

  	
   

  
	
   

  	
  SECTION 7.09.
  Agent’s Fees

  	
   

  
	
   

  	
  SECTION 7.10. No Additional
  Duties of other Agents

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8 CHANGE IN CIRCUMSTANCES

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 8.01.
  Basis for Determining Interest Rate Inadequate or Unfair

  	
   

  
	
   

  	
  SECTION 8.02.
  Illegality

  	
   

  
	
   

  	
  SECTION 8.03.
  Increased Cost and Reduced Return

  	
   

  
	
   

  	
  SECTION 8.04. Taxes

  	
   

  
	
   

  	
  SECTION 8.05.
  Base Rate Loans Substituted for Affected Fixed Rate Loans

  	
   

  
	
   

  	
  SECTION 8.06.
  Substitution of Bank

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9 MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.01.
  Notices

  	
   

  
	
   

  	
  SECTION 9.02. No Waivers

  	
   

  
	
   

  	
  SECTION 9.03. Expenses;
  Indemnification

  	
   

  
	
   

  	
  SECTION 9.04.
  Sharing of Set–offs

  	
   

  
	
   

  	
  SECTION 9.05. Amendments and
  Waivers

  	
   

  
	
   

  	
  SECTION 9.06.
  Successors and Assigns

  	
   

  
	
   

  	
  SECTION 9.07. Collateral

  	
   

  
	
   

  	
  SECTION 9.08. Governing Law;
  Submission to Jurisdiction

  	
   

  
	
   

  	
  SECTION 9.09.
  Counterparts; Integration; Effectiveness; Amendment and Restatement

  	
   

  

 

ii

 

	
   

  	
  SECTION 9.10. Severability

  	
   

  
	
   

  	
  SECTION 9.11. Headings

  	
   

  
	
   

  	
  SECTION 9.12.
  Limitation of Liability

  	
   

  
	
   

  	
  SECTION 9.13. Construction

  	
   

  
	
   

  	
  SECTION 9.14. Independence of
  Covenants

  	
   

  
	
   

  	
  SECTION 9.15.
  WAIVER OF JURY TRIAL

  	
   

  
	
   

  	
  SECTION 9.16. Confidentiality

  	
   

  
	
   

  	
  SECTION 9.17. USA PATRIOT Act

  	
   

  

 

iii

 

INDEX OF EXHIBITS AND SCHEDULES

 

	
  SCHEDULE 1.01

  	
   

  	
  –

  	
   

  	
  Commitments

  
	
  SCHEDULE 1.01(A)

  	
   

  	
  –

  	
   

  	
  Pricing Schedule

  
	
  SCHEDULE 1.01(B)

  	
   

  	
  –

  	
   

  	
  Existing Letters of Credit

  
	
  SCHEDULE 4.09

  	
   

  	
  –

  	
   

  	
  Material Subsidiaries

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
   

  	
  –

  	
   

  	
  Form of Note

  
	
  EXHIBIT B

  	
   

  	
  –

  	
   

  	
  Form of Money Market Quote Request

  
	
  EXHIBIT C

  	
   

  	
  –

  	
   

  	
  Form of Invitation for Money Market Quotes

  
	
  EXHIBIT D

  	
   

  	
  –

  	
   

  	
  Form of Money Market Quote

  
	
  EXHIBIT E

  	
   

  	
  –

  	
   

  	
  Form of Opinion of Counsel for the
  Borrower

  
	
  EXHIBIT F

  	
   

  	
  –

  	
   

  	
  Form of Assignment and Assumption
  Agreement

  
	
  EXHIBIT G

  	
   

  	
  –

  	
   

  	
  Form of Increased Commitment Supplement

  

 

 

AMENDED AND RESTATED CREDIT AGREEMENT

 

This
AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”) dated June 9, 2005,
is among CARLISLE COMPANIES INCORPORATED, a Delaware corporation (the “Borrower”),
the BANKS party hereto and JPMORGAN CHASE BANK, N.A. (formerly JPMorgan Chase
Bank), as Administrative Agent.

 

RECITALS

 

A.                                   The
Borrower, the lenders party thereto, JPMorgan Chase Bank, as the administrative
agent, and certain other parties entered into that certain Credit Agreement
dated June 24, 2003 (as amended by that certain First Amendment to Credit
Agreement date as of March 26, 2004, the “Prior Agreement”).  Since the date of the Prior Agreement, Bank
One, N.A. has merged with and into JPMorgan Chase Bank and JPMorgan Chase Bank
has changed its name to JPMorgan Chase Bank, N.A.  Fleet National Bank has merged with and into
Bank of America, N.A.  In addition, the
following lenders have assigned all of their respective interests in and to the
Prior Agreement to JPMorgan Chase Bank N.A. pursuant to the following
Assignment and Assumption Agreements:

 

1.                                       ABN AMRO
Bank, N.V. pursuant to an Assignment and Assumption Agreement dated the date
hereof; and

 

2.                                       KeyBank
National Association pursuant to an Assignment and Assumption Agreement dated
the date hereof.

 

As
a result of the foregoing, Bank One, N.A., Fleet National Bank, ABN AMRO Bank,
N.V. and KeyBank National Association are no longer party to the Prior
Agreement.

 

B.                                     The Borrower
has requested that the Prior Agreement be amended to, among other things, (i) add
BNP Paribas, Calyon New York Branch, Bank Hapoalim, B.M., Citibank North
America, Inc., Mizuho Corporate Bank, LTD., Bank of China, New York Branch
and The Norinchukin Bank, New York Branch as “Banks” thereunder and (ii) increase
the aggregate amount of the commitments provided under the Prior
Agreement.  The parties have agreed to
amend and restate the Prior Agreement on the terms and conditions set forth
herein.

 

C.                                     The proceeds
of any borrowings hereunder are to be used to refinance existing indebtedness,
to make acquisitions, for capital expenditures and working capital and for
other general corporate purposes. Letters of Credit issued hereunder shall be
issued to support transactions of the Borrower and its Subsidiaries.

 

NOW
THEREFORE, in consideration of the premises herein contained and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties, intending to be legally bound, hereby agree as
follows:

 

ARTICLE 1

DEFINITIONS

 

SECTION 1.01.  Definitions.  The
following terms, as used herein, have the following meanings:

 

“Absolute Rate Auction” means a solicitation of Money Market
Quotes setting forth Money Market Absolute Rates pursuant to Section 2.03.

 

“Adjusted CD Rate” has the meaning set forth in Section 2.08(b).

 

1

 

“Adjusted London Interbank Offered Rate” has the meaning set
forth in Section 2.08(c).

 

“Administrative Agent” means JPMorgan Chase Bank, N.A.
(formerly JPMorgan Chase Bank), in its capacity as administrative agent for the
Banks hereunder, and its successors in such capacity.

 

“Administrative Questionnaire” means, with respect to each
Bank, an administrative questionnaire in the form prepared by the
Administrative Agent and submitted to the Administrative Agent (with a copy to
the Borrower) duly completed by such Bank.

 

“Affiliate” means (i) any Person that directly, or
indirectly through one or more intermediaries, controls the Borrower (a “Controlling Person”) or (ii) any Person (other than the
Borrower or a Subsidiary) which is controlled by or is under common control
with a Controlling Person.  As used
herein, the term “control” means
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.

 

“Applicable Lending Office” means, with respect to any Bank, (i) in
the case of its Base Rate Loans, its Domestic Lending Office, (ii) in the
case of its Euro–Dollar Loans, its Euro–Dollar Lending Office and (iii) in
the case of its Money Market Loans, its Money Market Lending Office.

 

“Applicable Percentage” means, with respect to any Bank, the
percentage of the total Commitments represented by such Bank’s Commitment.  If the Commitments have terminated or
expired, the Applicable Percentage shall be determined based upon the
Commitments in effect immediately prior to such expiration or termination.

 

“Approved Fund” has the meaning as set forth in Section 9.06.

 

“Assessment Rate” has the meaning set forth in Section 2.08(b).

 

“Assignment and Assumption” means an Assignment and
Assumption entered into by a Bank and an assignee (with the consent of any
party whose consent is required by Section 9.06), and accepted by the
Administrative Agent, in the form of Exhibit F or any other form approved
by the Administrative Agent.

 

“Banks” means the Persons listed on Schedule 1.01 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 “Banks” includes the Swingline Bank.

 

“Base Margin” means a rate per annum determined in accordance
with the Pricing Schedule.

 

“Base Rate” means, for any day, a rate per annum equal to the
higher of (a) the Prime Rate for such day and (b) the sum of 1/2 of
1% plus Federal Funds Effective Rate for such day.

 

“Base Rate Loan” means (a) a Committed Loan that bears
interest at the Base Rate pursuant to the applicable Notice of Committed
Borrowing or Notice of Interest Rate Election or the last sentence of Section 2.16(a) or
Article 8 and (b) each Swingline Loan.

 

“Benefit Arrangement” means at any time an employee benefit
plan within the meaning of Section 3(3) of ERISA which is not a Plan
or a Multiemployer Plan and which is maintained or otherwise contributed to by
any member of the ERISA Group.

 

2

 

“Borrower” means Carlisle Companies Incorporated, a Delaware
corporation, and its successors.

 

“Borrower’s 2004 Form 10–K” means the Borrower’s annual
report on Form 10–K for the year ended December 31, 2004, as filed
with the Securities and Exchange Commission pursuant to the Securities Exchange
Act of 1934.

 

“Borrowing” has the meaning set forth in Section 1.03.

 

“CD Base Rate” has the meaning set forth in Section 2.08(b).

 

“CD Loan” means a Committed Loan that bears interest at a CD
Rate pursuant to the applicable Notice of Committed Borrowing or Notice of
Interest Rate Election.

 

“CD Margin” means a rate per annum determined in accordance
with the Pricing Schedule.

 

“CD Rate” means a rate of interest determined pursuant to Section 2.08(b) on
the basis of an Adjusted CD Rate.

 

“CD Reference Bank” means JPMorgan Chase Bank, N.A.

 

“Closing Date” means the date on or after the Effective Date
on which the Administrative Agent shall have received the documents specified
in or pursuant to Section 3.01.

 

“Commitment” means, with respect to each Bank, the commitment
of such Bank to make Loans and to acquire participations in Letters of Credit
hereunder, expressed as the amount set forth opposite such Bank’s name on Schedule 1.01,
as such Commitment may be (a) reduced from time to time pursuant to Section 2.10;
(b) increased from time to time pursuant to Section 2.18; and (c) reduced
or increased from time to time pursuant to assignments by or to such Bank
pursuant to Section 9.06.  The
initial amount of each Bank’s Commitment is set forth on the Schedule 1.01,
in the Assignment and Assumption pursuant to which such Bank shall have assumed
its Commitment or in its Increased Commitment Supplement, as applicable.  The initial aggregate amount of the Banks’
Commitments is $300,000,000.

 

“Committed Loan” means a loan made by a Bank pursuant to Section 2.01
or pursuant to Section 2.01 of the Prior Agreement that remains
outstanding on the Effective Date; provided that, if any such loan or loans (or
portions thereof) are combined or subdivided pursuant to a Notice of Interest
Rate Election, the term “Committed Loan” shall refer to the combined principal
amount resulting from such combination or to each of the separate principal
amounts resulting from such subdivision, as the case may be.

 

“Consolidated Assets” means, at any date, the assets of the
Borrower and its Consolidated Subsidiaries, determined on a consolidated basis
as of such date.

 

“Consolidated Debt” means, at any date, the Debt of the
Borrower and its Consolidated Subsidiaries, determined on a consolidated basis
as of such date.

 

“Consolidated EBITDA” has the meaning set forth in Section 5.11.

 

“Consolidated Financial Liabilities” has the meaning set
forth in Section 5.11.

 

“Consolidated Interest Expense” has the meaning set forth in Section 5.11.

 

3

 

“Consolidated Net Income” means, for any fiscal period, the
net income of the Borrower and its Consolidated Subsidiaries, determined on a
consolidated basis for such period, exclusive of the effect of any
extraordinary or other nonrecurring gain (but not loss).

 

“Consolidated Net Worth” means, at any date, the consolidated
shareholders’ equity of the Borrower and its Consolidated Subsidiaries,
determined on a consolidated basis as of such date.

 

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

 

“Consolidated Tangible Net Worth” means, at any date, the sum
of the following, determined on a consolidated basis as of such date: (i) the
consolidated shareholders’ equity of the Borrower and its Consolidated
Subsidiaries minus (ii) the amount of intangible assets carries on the
balance sheet of the Borrower and its Consolidated Subsidiaries at such date.

 

“Debt” of any Person means, at any date, without duplication,
(i) all obligations of such Person for borrowed money, (ii) all
obligations of such Person evidenced by bonds, debentures, notes or other
similar instruments, (iii) all obligations of such Person to pay the
deferred purchase price of property or services, except trade accounts payable
arising in the ordinary course of business, (iv) all obligations of such
Person as lessee which are capitalized in accordance with generally accepted
accounting principles, (v) all non–contingent obligations (and, for
purposes of Section 5.09 and the definitions of Material Debt and Material
Financial Obligations, all contingent obligations) of such Person to reimburse
any bank or other Person in respect of amounts paid under a letter of credit or
similar instrument, (vi) all Debt secured by a Lien on any asset of such
Person, whether or not such Debt is otherwise an obligation of such Person and (vii) all
Debt of others Guaranteed by such Person; provided that
Debt shall not include available yet unborrowed commitments in any revolving
credit facility of the Borrower or its Subsidiaries.  In calculating the amount of Debt for any
purposes under this Agreement, any particular issuance of Debt shall be
recorded at par or its remaining principal amount (excluding any increase or
decrease attributable to the termination of any related Derivatives
Obligations), notwithstanding any contrary treatment in accordance with
generally accepted accounting principles.

 

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

 

“Derivatives Obligations” of any Person means all obligations
of such Person in respect of any rate swap transaction, basis swap, forward
rate transaction, commodity swap, commodity option, equity or equity index
swap, equity or equity index option, bond option, interest rate option, foreign
exchange transaction, cap transaction, floor transaction, collar transaction,
currency swap transaction, cross–currency rate swap transaction, currency
option or any other similar transaction (including any option with respect to
any of the foregoing transactions) or any combination of the foregoing
transactions.

 

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

 

“Domestic Lending Office” means, as to each Bank, its office
located at its address set forth in its Administrative Questionnaire (or
identified in its Administrative Questionnaire as its Domestic Lending Office)
or such other office as such Bank may hereafter designate as its Domestic
Lending Office by notice to the Borrower and the Administrative Agent, provided that any Bank may so designate separate Domestic
Lending Offices for its Base Rate Loans, on the one hand, and its CD Loans, on
the other hand, in which case all references herein to the Domestic Lending
Office of such Bank shall be deemed to refer to either or both of such offices,
as the context may require.

 

4

 

“Domestic Loans” means CD Loans or Base Rate Loans or both.

 

“Domestic Reserve Percentage” has the meaning set forth in Section 2.08(b).

 

“Effective Date” means the date this Agreement becomes
effective in accordance with Section  3.01.

 

“Environmental Laws” means any and all federal, state, local
and foreign statutes, laws, judicial decisions, regulations, ordinances, rules,
judgments, orders, decrees, plans, injunctions, permits, concessions, grants,
franchises, licenses, agreements and other governmental restrictions relating
to the environment, the effect of the environment on human health or to
emissions, discharges or releases of pollutants, contaminants, Hazardous
Substances or wastes into the environment including, without limitation,
ambient air, surface water, ground water, or land, or otherwise relating to the
manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of pollutants, contaminants, Hazardous Substances or
wastes or the clean–up or other remediation thereof.

 

“ERISA” means the Employee Retirement Income Security Act of
1974, as amended, or any successor statute.

 

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

 

“Euro–Dollar Business Day” means any Domestic Business Day on
which commercial banks are open for international business (including dealings
in dollar deposits) in London.

 

“Euro–Dollar Lending Office” means, as to each Bank, its
office, branch or affiliate located at its address set forth in its
Administrative Questionnaire (or identified in its Administrative Questionnaire
as its Euro–Dollar Lending Office) or such other office, branch or affiliate of
such Bank as it may hereafter designate as its Euro–Dollar Lending Office by
notice to the Borrower and the Administrative Agent.

 

“Euro–Dollar Loan” means a Committed Loan that bears interest
at a Euro–Dollar Rate pursuant to the applicable Notice of Committed Borrowing
or Notice of Interest Rate Election.

 

“Euro–Dollar Margin” means a rate per annum determined in
accordance with the Pricing Schedule.

 

“Euro–Dollar Rate” means a rate of interest determined
pursuant to Section 2.08(c) on the basis of a London Interbank
Offered Rate.

 

“Euro–Dollar Reference Bank” means the principal London
offices of JPMorgan Chase Bank, N.A.

 

“Euro–Dollar Reserve Percentage” has the meaning set forth in
Section 2.08(c).

 

“Event of Default” has the meaning set forth in Section 6.01.

 

“Facility Fee Rate” means the rate per annum determined in
accordance with the Pricing Schedule.

 

5

 

“Federal Funds Rate” means, for any day, the rate per annum
(rounded upward, if necessary, to the nearest 1/100th of 1%) equal to the
weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers on such
day, as published by the Federal Reserve Bank of New York on the Domestic
Business Day next succeeding such day, provided that (i) if
such day is not a Domestic Business Day, the Federal Funds Rate for such day
shall be such rate on such transactions on the next preceding Domestic Business
Day as so published on the next succeeding Domestic Business Day, and (ii) if
no such rate is so published on such next succeeding Domestic Business Day, the
Federal Funds Rate for such day shall be the average rate quoted to JPMorgan
Chase Bank, N.A. on such day on such transactions as determined by the
Administrative Agent.

 

“Fixed Rate Loans” means CD Loans or Euro–Dollar Loans or
Money Market Loans (excluding Money Market LIBOR Loans bearing interest at the
Base Rate pursuant to Section 8.01) or any combination of the foregoing.

 

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

 

“Group of Loans” means, at any time, a group of Loans
consisting of (i) all Committed Loans which are Base Rate Loans at such
time, (ii) all Euro–Dollar Loans having the same Interest Period at such
time or (iii) all CD Loans having the same Interest Period at such time; provided that, if a Committed Loan of any particular Bank is
converted to or made as a Base Rate Loan pursuant to Article 8, such Loan
shall be included in the same Group or Groups of Loans from time to time as it
would have been in if it had not been so converted or made.

 

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

 

“Hazardous Substances” means any toxic, radioactive, caustic
or otherwise hazardous substance, including petroleum, its derivatives,
by–products and other hydrocarbons, or any substance having any constituent
elements displaying any of the foregoing characteristics.

 

“Increase
Amount” has the meaning assigned to such term in Section 2.18.

 

“Increased
Commitment Supplement” has the meaning specified in Section 2.18.

 

“Indemnitee” has the meaning set forth in Section 9.03(b).

 

“Information” has the
meaning specified in Section 9.16.

 

“Interest Period” means:

 

6

 

(1)                                  with respect
to each Euro–Dollar Loan, the period commencing on the date of borrowing
specified in the applicable Notice of Borrowing or on the date specified in an
applicable Notice of Interest Rate Election and ending two weeks, one, two,
three or six months thereafter, as the Borrower may elect in the applicable
notice; provided that:

 

(a)                                  any Interest
Period which would otherwise end on a day which is not a Euro–Dollar Business
Day shall be extended to the next succeeding Euro–Dollar Business Day unless
such Euro–Dollar Business Day falls in another calendar month, in which case
such Interest Period shall end on the next preceding Euro–Dollar Business Day;

 

(b)                                 any Interest
Period which begins on the last Euro–Dollar Business Day of a calendar month
(or on a day for which there is no numerically corresponding day in the
calendar month at the end of such Interest Period) shall, subject to
clause (c) below, end on the last Euro–Dollar Business Day of a
calendar month; and

 

(c)                                  any Interest
Period which would otherwise end after the Termination Date shall end on the
Termination Date or a date prior thereto as determined pursuant to clauses (a) and
(b) of this subsection (1).

 

(2)                                  with respect
to each CD Loan, the period commencing on the date of borrowing specified in
the applicable Notice of Borrowing or on the date specified in an applicable
Notice of Interest Rate Election and ending 30, 60, 90 or 180 days thereafter,
as the Borrower may elect in the applicable notice; provided
that:

 

(a)                                  any Interest
Period (other than an Interest Period determined pursuant to clause (b) below)
which would otherwise end on a day which is not a Domestic Business Day shall
be extended to the next succeeding Domestic Business Day; and

 

(b)                                 any Interest
Period which would otherwise end after the Termination Date shall end on the
Termination Date.

 

(3)                                  with respect
to each Money Market LIBOR Borrowing, the period commencing on the date of such
Borrowing and ending such whole number of months thereafter as the Borrower may
elect in accordance with Section 2.03; provided that:

 

(a)                                  any Interest
Period which would otherwise end on a day which is not a Euro–Dollar Business
Day shall be extended to the next succeeding Euro–Dollar Business Day unless
such Euro–Dollar Business Day falls in another calendar month, in which case
such Interest Period shall end on the next preceding Euro–Dollar Business Day;

 

(b)                                 any Interest
Period which begins on the last Euro–Dollar Business Day of a calendar month
(or on a day for which there is no numerically corresponding day in the
calendar month at the end of such Interest Period) shall, subject to
clause (c) below, end on the last Euro–Dollar Business Day of a
calendar month; and

 

(c)                                  any Interest
Period which would otherwise end after the Termination Date shall end on the
Termination Date or a date prior thereto as determined pursuant to clauses (a) and
(b) of this subsection (3).

 

7

 

(4)                                  with respect
to each Money Market Absolute Rate Borrowing, the period commencing on the date
of such Borrowing and ending such number of days thereafter (but not less than
14 days) as the Borrower may elect in accordance with Section 2.03; provided that:

 

(a)                                  any Interest
Period which would otherwise end on a day which is not a Domestic Business Day
shall be extended to the next succeeding Domestic Business Day; and

 

(b)                                 any Interest
Period which would otherwise end after the Termination Date shall end on the
Termination Date.

 

“Internal Revenue Code” means the Internal Revenue Code of
1986, as amended, or any successor statute.

 

“Issuing Bank” means each Bank, in its capacity as the issuer
of Letters of Credit hereunder, its successors in such capacity as provided in Section 2.17(h) and
any affiliate of a Bank who issues a Letter of Credit for the account of the
Borrower.

 

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

 

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

 

“Letter of Credits” means each letter of credit issued by a
Bank for the account of the Borrower which is outstanding on the Effective Date
and identified on Schedule 1.01(b) and each letter of credit issued
by a Bank pursuant to Section 2.17 of this Agreement.  Letters of Credit may include standby,
commercial or direct pay letters of credit.

 

“LIBOR Auction” means a solicitation of Money Market Quotes
setting forth Money Market Margins based on the London Interbank Offered Rate
pursuant to Section 2.03.

 

“Lien” means, with respect to any asset, any mortgage, lien,
pledge, charge, security interest or encumbrance of any kind, or any other type
of preferential arrangement that has the practical effect of creating a
security interest, in respect of such asset. 
For the purposes of this Agreement, the Borrower or any Subsidiary shall
be deemed to own subject to a Lien any asset which it has acquired or holds
subject to the interest of a vendor or lessor under any conditional sale
agreement, capital lease or other title retention agreement relating to such
asset.

 

“Loan” means a Domestic Loan, a Euro–Dollar Loan or a Money
Market Loan and “Loans” means Domestic Loans, Euro–Dollar Loans or Money Market
Loans or any combination of the foregoing made by the Banks pursuant to this
Agreement and any loans made by the lenders under the Prior Agreement which are
outstanding on the Effective Date.

 

“Loan Documents” means this Agreement, each of the Notes, and
all other documents executed or delivered (or to be executed or delivered) in
connection with this Agreement or any of the foregoing documents, and any
amendments, supplements or other modifications of any of the foregoing.

 

“London Interbank Offered Rate” has the meaning set forth in Section 2.08(c).

 

8

 

“Material Adverse Effect” means (i) a material adverse
effect on the business, financial position or results of operations of the
Borrower and its Consolidated Subsidiaries, considered as a whole, or (ii) an
adverse effect which any Bank could reasonably deem material on the rights and
remedies of the Banks under this Agreement or any Note.

 

“Material Debt” means Debt (other than the Notes) of the
Borrower and/or one or more of its Subsidiaries, arising in one or more related
or unrelated transactions, in any individual case or in an aggregate principal
or face amount exceeding $10,000,000.

 

“Material Financial Obligations” means a principal or face
amount of Debt and/or payment or collateralization obligations in respect of
Derivatives Obligations of the Borrower and/or one or more of its Subsidiaries,
arising in one or more related or unrelated transactions, exceeding in any
individual case or in the aggregate $10,000,000.

 

“Material Plan” means at any time a Plan or Plans having
aggregate Unfunded Liabilities in excess of $10,000,000.

 

“Material Subsidiary” means any Subsidiary of the Borrower
from time to time having, as of the date of the consolidated balance sheet of
the Borrower and its Subsidiaries contained in the annual report on Form 10–K
of the Borrower most recently delivered to the Banks in compliance herewith,
consolidated assets of at least $25,000,000, as certified to the Banks by the
Borrower on the date of delivery of such annual report, each change in the
designation of Material Subsidiaries to become effective as of the date of such
balance sheet.  Material Subsidiaries in
existence as of March 31, 2004 are listed on Schedule 2 hereto.

 

“Money Market Absolute Rate” has the meaning set forth in Section 2.03(d)(ii)(D).

 

“Money Market Absolute Rate Loan” means a loan to be made by
a Bank pursuant to an Absolute Rate Auction.

 

“Money Market Lending Office” means, as to each Bank, its
Domestic Lending Office or such other office, branch or affiliate of such Bank
as it may hereafter designate as its Money Market Lending Office by notice to
the Borrower and the Administrative Agent; provided that
any Bank may from time to time by notice to the Borrower and the Administrative
Agent designate separate Money Market Lending Offices for its Money Market
LIBOR Loans, on the one hand, and its Money Market Absolute Rate Loans, on the
other hand, in which case all references herein to the Money Market Lending
Office of such Bank shall be deemed to refer to either or both of such offices,
as the context may require.

 

“Money Market LIBOR Loan” means a loan to be made by a Bank
pursuant to a LIBOR Auction (including such a loan bearing interest at the Base
Rate pursuant to Section 8.01).

 

“Money Market Loan” means a Money Market LIBOR Loan or a
Money Market Absolute Rate Loan.

 

“Money Market Margin” has the meaning set forth in Section 2.03(d)(ii)(C).

 

“Money Market Quote” means an offer by a Bank to make a Money
Market Loan in accordance with Section 2.03.

 

“Money Market Quote Request” has the meaning set forth in Section 2.03(b).

 

9

 

“Multiemployer Plan” means at any time an employee pension
benefit plan within the meaning of Section 4001(a)(3) of ERISA to
which any member of the ERISA Group is then making or accruing an obligation to
make contributions or has within the preceding five plan years made
contributions, including for these purposes any Person which ceased to be a
member of the ERISA Group during such five year period.

 

“New Bank” has the meaning assigned to such term in Section 2.18.

 

“Notes” means promissory notes of the Borrower, substantially
in the form of Exhibit A hereto, evidencing the obligation of the Borrower
to repay the Loans, and “Note” means any
one of such promissory notes issued hereunder.

 

“Notice of Borrowing” means a Notice of Committed Borrowing
(as defined in Section 2.02) or a Notice of Money Market Borrowing (as
defined in Section 2.03(f)).

 

“Notice of Interest Rate Election” has the meaning specified
in Section 2.16.

 

“Notice of Money Market Borrowing” has the meaning set forth
in Section 2.03(f).

 

“Other Taxes” has the meaning set forth in Section 8.04.

 

“Parent” means, with respect to any Bank, any Person
controlling such Bank.

 

“Participant” has the meaning set forth in Section 9.06.

 

“PBGC” means the Pension Benefit Guaranty Corporation or any
entity succeeding to any or all of its functions under ERISA.

 

“Permitted Securitization  Transaction”
means a sale of accounts receivable or other rights to payment in a transaction
involving a true sale and commonly referred to as a securitization transaction;
provided that the aggregate outstanding thereunder (i.e., advanced as the
purchase price and not repaid from collections) by the Borrower and its
Consolidated Subsidiaries pursuant to all such transactions shall at no time
exceed $150,000,000.

 

“Person” means an individual, a corporation, a limited
liability company, a partnership, an association, a trust or any other entity
or organization, including a government or political subdivision or an agency
or instrumentality thereof.

 

“Plan” means at any time an employee pension benefit plan
(other than a Multiemployer Plan) which is covered by Title IV of ERISA or
subject to the minimum funding standards under Section 412 of the Internal
Revenue Code and either (i) is maintained, or contributed to, by any
member of the ERISA Group for employees of any member of the ERISA Group or (ii) has
at any time within the preceding five years been maintained, or contributed to,
by any Person which was at such time a member of the ERISA Group for employees
of any Person which was at such time a member of the ERISA Group.

 

“Pricing Schedule” means the schedule attached hereto as
Schedule 1.01(a).

 

“Prime Rate” means the rate of interest publicly announced by
JPMorgan Chase Bank, N.A. in New York City from time to time as its Prime Rate.

 

“Prior Agreement” has the meaning specified in the Recitals
hereto.

 

“Quarterly Payment Dates” means each March 31, June 30,
September 30 and December 31.

 

10

 

“Reference Bank” means the CD Reference Bank or the
Euro–Dollar Reference Bank, as the context may require.

 

“Register” has the meaning set forth in Section 9.06.

 

“Regulation U” means Regulation U of the Board of Governors
of the Federal Reserve System, as in effect from time to time.

 

“Required Banks” means at any time Banks having at least 51%
of the aggregate amount of the Commitments or, if the Commitments shall have
been terminated, holding Notes evidencing at least 51% of the aggregate unpaid
principal amount of the Loans.

 

“Revolving Credit Period” means the period from and including
the Effective Date to but not including the Termination Date.

 

“Revolving Exposure” shall mean, with respect to any Bank at
any time, the sum of the outstanding principal amount of such Bank’s Loans
(including Money Market Loans) and its LC Exposure and Swingline Exposure at
such time.

 

“Swingline Bank” means JPMorgan Chase Bank, N.A., in its
capacity as lender of Swingline Loans hereunder.

 

“Swingline Exposure” means, at any time, the aggregate
principal amounts of all Swingline Loans outstanding at such time.  The Swingline Exposure of any Bank at any
time shall be its Applicable Percentage of the total Swingline Exposure at such
time.

 

“Swingline Loan” means a Loan made pursuant to Section 2.05.

 

“Subsidiary” means, as to any Person, any corporation or
other entity of which securities or other ownership interests having ordinary
voting power to elect a majority of the board of directors or other persons
performing similar functions are at the time directly or indirectly owned by
such Person; unless otherwise specified, “Subsidiary” means a Subsidiary of the
Borrower.

 

“Taxes” has the meaning set forth in Section 8.04.

 

“Termination Date” means June 9, 2010.

 

“Unfunded Liabilities” means, with respect to any Plan at any
time, the amount (if any) by which (i) the value of all benefit
liabilities under such Plan, determined on a plan termination basis using the
assumptions prescribed by the PBGC for purposes of Section 4044 of ERISA,
exceeds (ii) the fair market value of all Plan assets allocable to such
liabilities under Title IV of ERISA (excluding any accrued but unpaid
contributions), all determined as of the then most recent valuation date for
such Plan, but only to the extent that such excess represents a potential
liability of a member of the ERISA Group to the PBGC or any other Person under
Title IV of ERISA.

 

“United States” means the United States of America, including
the States and the District of Columbia, but excluding its territories and
possessions.

 

“Wholly–Owned Subsidiary” means any Subsidiary, all of the
shares of capital stock or other ownership interests of which (except directors’
qualifying shares) are at the time directly or indirectly owned by the
Borrower.

 

11

 

SECTION 1.02.  Accounting Terms and Determinations.  Unless otherwise specified herein, all
accounting terms used herein shall be interpreted, all accounting
determinations hereunder shall be made, and all financial statements required
to be delivered hereunder shall be prepared in accordance with generally
accepted accounting principles as in effect from time to time, applied on a
basis consistent (except for changes concurred in by the Borrower’s independent
public accountants) with the most recent audited consolidated financial
statements of the Borrower and its Consolidated Subsidiaries delivered to the
Banks prior to the Effective Date; provided that,
if the Borrower notifies the Administrative Agent that the Borrower wishes to
amend any covenant in Article 5 to eliminate the effect of any change in
generally accepted accounting principles on the operation of such covenant (or
if the Administrative Agent notifies the Borrower that the Required Banks wish
to amend Article 5 for such purpose), then the Borrower’s compliance with
such covenant shall be determined on the basis of generally accepted accounting
principles in effect immediately before the relevant change in generally
accepted accounting principles became effective, until either such notice is
withdrawn or such covenant is amended in a manner satisfactory to the Borrower
and the Required Banks.

 

SECTION 1.03.  Types of Borrowings. 
The term “Borrowing” denotes the aggregation
of Loans of one or more Banks to be made to the Borrower pursuant to Article 2
on a single date and for a single Interest Period.  Borrowings are classified for purposes of
this Agreement either by reference to the pricing of Loans comprising such
Borrowing (e.g., a “Fixed Rate
Borrowing” is a Euro–Dollar Borrowing, a CD Borrowing or a Money
Market Borrowing (excluding any such Borrowing consisting of Money Market LIBOR
Loans bearing interest at the Base Rate pursuant to Section 8.01), and a “Euro–Dollar Borrowing” is a Borrowing comprised of
Euro–Dollar Loans) or by reference to the provisions of Article 2 under
which participation therein is determined (i.e., a “Committed Borrowing” is a Borrowing under Section 2.01
in which all Banks participate in proportion to their Commitments, while a “Money Market Borrowing” is a Borrowing under Section 2.03
in which the Bank participants are determined on the basis of their bids in
accordance therewith).

 

ARTICLE 2

THE CREDITS

 

SECTION 2.01.  Commitments to Lend. 
During the Revolving Credit Period, each Bank severally agrees, on the
terms and conditions set forth in this Agreement, to make loans to the Borrower
pursuant to this Section from time to time in amounts such that the
Revolving Exposure of a Bank shall not exceed such Bank’s Commitment.  Each Borrowing under this Section shall
be in an aggregate principal amount of $10,000,000 or any larger multiple of
$1,000,000 (except that any such Borrowing may be in the aggregate amount
available in accordance with Section 3.02(c)) and shall be made from the
several Banks in accordance with their respective Applicable Percentages.  Within the foregoing limits, the Borrower may
borrow under this Section, to the extent permitted by Section 2.12, prepay
Loans and reborrow at any time during the Revolving Credit Period under this
Section.

 

SECTION 2.02.  Notice of Committed Borrowing.  The Borrower shall give the Administrative
Agent notice (a “Notice of Committed Borrowing”)
not later than 10:30 A.M. (New York City time) on (x) the date of
each Base Rate Borrowing, (y) the second Domestic Business Day before each
CD Borrowing and (z) the third Euro–Dollar Business Day before each
Euro–Dollar Borrowing, specifying:

 

(i)                                     the date of such Borrowing, which shall
be a Domestic Business Day in the case of a Domestic Borrowing or a Euro–Dollar
Business Day in the case of a Euro–Dollar Borrowing;

 

(ii)                                  the aggregate amount of such Borrowing,
which shall be $10,000,000 or a larger multiple of $1,000,000 or, in the case
of a Base Rate Borrowing only, an amount that is required

 

12

 

to finance the
reimbursement of an LC Disbursement as contemplated by Section 2.17(e) except
that any Borrowing may be in the aggregate amount available in accordance with Section 3.02(c));

 

(iii)                               whether the Loans comprising such
Borrowing are to bear interest initially at the Base Rate, a CD Rate or a
Euro–Dollar Rate; and

 

(iv)                              in the case of a Fixed Rate Borrowing,
the duration of the initial Interest Period applicable thereto, subject to the
provisions of the definition of Interest Period.

 

SECTION 2.03.  Money Market Borrowings. 
(a) The Money Market Option.  In addition to Committed Borrowings pursuant
to Section 2.01, the Borrower may, as set forth in this Section, request
the Banks during the Revolving Credit Period to make offers to make Money
Market Loans to the Borrower.  The Banks
may, but shall have no obligation to, make such offers and the Borrower may,
but shall have no obligation to, accept any such offers in the manner set forth
in this Section.

 

(b)                                 Money Market Quote Request. 
When the Borrower wishes to request offers to make Money Market Loans
under this Section, it shall transmit to the Administrative Agent by telex or
facsimile transmission a request (a “Money Market Quote
Request”) substantially
in the form of Exhibit B hereto so as to be received not later than 10:30 A.M.
(New York City time) on (x) the fifth Euro–Dollar Business Day prior to
the date of Borrowing proposed therein, in the case of a LIBOR Auction or
(y) the Domestic Business Day next preceding the date of Borrowing
proposed therein, in the case of an Absolute Rate Auction (or, in either case,
such other time or date as the Borrower and the Administrative Agent shall have
mutually agreed and shall have notified to the Banks not later than the date of
the Money Market Quote Request for the first LIBOR Auction or Absolute Rate
Auction for which such change is to be effective) specifying:

 

(i)                                     the proposed date of Borrowing, which
shall be a Euro–Dollar Business Day in the case of a LIBOR Auction or a
Domestic Business Day in the case of an Absolute Rate Auction,

 

(ii)                                  the aggregate amount of such Borrowing,
which shall be $10,000,000 or a larger multiple of $1,000,000,

 

(iii)                               the duration of the Interest Period
applicable thereto, subject to the provisions of the definition of Interest
Period, and

 

(iv)                              whether the Money Market Quotes requested
are to set forth a Money Market Margin or a Money Market Absolute Rate.

 

The Borrower may request offers to make Money Market Loans for more
than one Interest Period in a single Money Market Quote Request.  No Money Market Quote Request shall be given
within five Euro–Dollar Business Days (or such other number of days as the
Borrower and the Administrative Agent may agree) of any other Money Market
Quote Request.

 

(c)                                  Invitation for Money Market
Quotes.  Promptly upon receipt of a Money Market Quote
Request, the Administrative Agent shall send to the Banks by facsimile
transmission an Invitation for Money Market Quotes substantially in the form of
Exhibit C hereto, which shall constitute an invitation by the Borrower to
each Bank to submit Money Market Quotes offering to make the Money Market Loans
to which such Money Market Quote Request relates in accordance with this
Section.

 

(d)                                 Submission and Contents of Money
Market Quotes.  (i) Each Bank may submit a Money Market
Quote containing an offer or offers to make Money Market Loans in response to
any

 

13

 

Invitation for
Money Market Quotes.  Each Money Market
Quote must comply with the requirements of this subsection (d) and
must be submitted to the Administrative Agent by facsimile transmission at its
offices specified in or pursuant to Section 9.01 not later than
(x) 2:00 P.M. (New York City time) on the fourth Euro–Dollar Business
Day prior to the proposed date of Borrowing, in the case of a LIBOR Auction or
(y) 9:30 A.M. (New York City time) on the proposed date of Borrowing,
in the case of an Absolute Rate Auction (or, in either case, such other time or
date as the Borrower and the Administrative Agent shall have mutually agreed
and shall have notified the Banks not later than the date of the Money Market
Quote Request for the first LIBOR Auction or Absolute Rate Auction for which
such change is to be effective); provided that
Money Market Quotes submitted by the Administrative Agent (or any affiliate of
the Administrative Agent) in the capacity of a Bank may be submitted, and may
only be submitted, if the Administrative Agent or such affiliate notifies the
Borrower of the terms of the offer or offers contained therein not later than
(x) one hour prior to the deadline for the other Banks, in the case of a
LIBOR Auction or (y) 15 minutes prior to the deadline for the other Banks,
in the case of an Absolute Rate Auction. 
Subject to Articles 3 and 6, any Money Market Quote so made shall
be irrevocable except with the written consent of the Administrative Agent
given on the instructions of the Borrower.

 

(ii)                                  Each Money Market Quote shall be in
substantially the form of Exhibit D hereto and shall in any case specify:

 

(A)                              the proposed date of Borrowing,

 

(B)                                the principal amount of the Money Market
Loan for which each such offer is being made, which principal amount (1) may
be greater than or less than the Commitment of the quoting Bank, (2) must
be $5,000,000 or a larger multiple of $1,000,000, (3) may not exceed the
principal amount of Money Market Loans for which offers were requested and (4) may
be subject to an aggregate limitation as to the principal amount of Money
Market Loans for which offers being made by such quoting Bank may be accepted,

 

(C)                                in the case of a LIBOR Auction, the
margin above or below the applicable London Interbank Offered Rate (the “Money Market Margin”) offered for each such Money Market
Loan, expressed as a percentage (specified to the nearest 1/10,000th of 1%) to
be added to or subtracted from such offered rate,

 

(D)                               in the case of an Absolute Rate Auction,
the rate of interest per annum (specified to the nearest 1/10,000th of 1%) (the
“Money Market Absolute Rate”) offered
for each such Money Market Loan, and

 

(E)                                 the identity of the quoting Bank.

 

A Money
Market Quote may set forth up to five separate offers by the quoting Bank with
respect to each Interest Period specified in the related Invitation for Money
Market Quotes.

 

(iii)                               Any Money Market Quote shall be
disregarded if it:

 

(A)                              is not substantially in conformity with Exhibit D
hereto or does not specify all of the information required by subsection (d)(ii) above;

 

(B)                                contains qualifying, conditional or
similar language;

 

(C)                                proposes terms other than or in addition
to those set forth in the applicable Invitation for Money Market Quotes; or

 

14

 

(D)                               arrives after the time set forth in subsection (d)(i).

 

(e)                                  Notice to Borrower. 
The Administrative Agent shall promptly notify the Borrower of the terms
(x) of any Money Market Quote submitted by a Bank that is in accordance
with subsection (d) and (y) of any Money Market Quote that
amends, modifies or is otherwise inconsistent with a previous Money Market
Quote submitted by such Bank with respect to the same Money Market Quote
Request.  Any such subsequent Money
Market Quote shall be disregarded by the Administrative Agent unless such
subsequent Money Market Quote is submitted solely to correct a manifest error
in such former Money Market Quote.  The
Administrative Agent’s notice to the Borrower shall specify (A) the
aggregate principal amount of Money Market Loans for which offers have been
received for each Interest Period specified in the related Money Market Quote
Request, (B) the respective principal amounts and Money Market Margins or
Money Market Absolute Rates, as the case may be, so offered and (C) if
applicable, limitations on the aggregate principal amount of Money Market Loans
for which offers in any single Money Market Quote may be accepted.

 

(f)                                    Acceptance and Notice by Borrower. 
Not later than 10:30 A.M. (New York City time) on (x) the
third Euro–Dollar Business Day prior to the proposed date of Borrowing, in the
case of a LIBOR Auction or (y) the proposed date of Borrowing, in the case
of an Absolute Rate Auction (or, in either case, such other time or date as the
Borrower and the Administrative Agent shall have mutually agreed and shall have
notified to the Banks not later than the date of the Money Market Quote Request
for the first LIBOR Auction or Absolute Rate Auction for which such change is
to be effective), the Borrower shall notify the Administrative Agent of its
acceptance or non–acceptance of the offers so notified to it pursuant to subsection (e).  In the case of acceptance, such notice (a “Notice of Money Market Borrowing”) shall specify the
aggregate principal amount of offers for each Interest Period that are
accepted.  The Borrower may accept any
Money Market Quote in whole or in part; provided that:

 

(i)                                     the aggregate principal amount of each
Money Market Borrowing may not exceed the applicable amount set forth in the
related Money Market Quote Request;

 

(ii)                                  the principal amount of each Money Market
Borrowing must be $10,000,000 or a larger multiple of $1,000,000;

 

(iii)                               acceptance of offers may only be made on
the basis of ascending Money Market Margins or Money Market Absolute Rates, as
the case may be; and

 

(iv)                              the Borrower may not accept any offer
that is described in subsection (d)(iii) or that otherwise fails to
comply with the requirements of this Agreement.

 

(g)                                 Allocation by Administrative
Agent.  If offers are made by two or more Banks with
the same Money Market Margins or Money Market Absolute Rates, as the case may
be, for a greater aggregate principal amount than the amount in respect of
which such offers are accepted for the related Interest Period, the principal
amount of Money Market Loans in respect of which such offers are accepted shall
be allocated by the Administrative Agent among such Banks as nearly as possible
(in multiples of $1,000,000, as the Administrative Agent may deem appropriate)
in proportion to the aggregate principal amounts of such offers.  Determinations by the Administrative Agent of
the amounts of Money Market Loans shall be conclusive in the absence of
manifest error.

 

SECTION 2.04.  Notice to Banks:  Funding of
Loans.  (a) Upon receipt
of a Notice of Borrowing, the Administrative Agent shall promptly notify each
Bank of the contents thereof and of such Bank’s share (if any) of such
Borrowing and such Notice of Borrowing shall not thereafter be revocable by the
Borrower.

 

15

 

(b)                                 Not later than 12:00 Noon (New York
City time) on the date of each Borrowing, each Bank participating therein shall
make available its share of such Borrowing, in Federal or other funds
immediately available in New York City, to the Administrative Agent at its
address referred to in Section 9.01; provided that Swingline Loans
shall be made as provided in Section 2.05. 
Unless the Administrative Agent determines that any applicable condition
specified in Article 3 has not been satisfied, the Administrative Agent
will make the funds so received from the Banks available to the Borrower at the
Administrative Agent’s aforesaid address provided that a
Base Rate Borrowing made to finance the reimbursement of an
LC Disbursement as provided in Section 2.17(e) shall be remitted
by the Administrative Agent to the applicable Issuing Bank.

 

(c)                                  Unless the Administrative Agent shall
have received notice from a Bank prior to the date of any Borrowing that such
Bank will not make available to the Administrative Agent such Bank’s share of
such Borrowing, the Administrative Agent may assume that such Bank has made
such share available to the Administrative Agent on the date of such Borrowing
in accordance with subsection (b) of this Section and the
Administrative Agent may, in reliance upon such assumption, make available to
the Borrower on such date a corresponding amount.  If and to the extent that such Bank shall not
have so made such share available to the Administrative Agent, such Bank and
the Borrower severally agree to repay to the Administrative Agent forthwith on
demand such corresponding amount together with interest thereon, for each day
from the date such amount is made available to the Borrower until the date such
amount is repaid to the Administrative Agent, at the Federal Funds Rate.  If such Bank shall repay to the
Administrative Agent such corresponding amount, such amount so repaid shall
constitute such Bank’s Loan included in such Borrowing for purposes of this
Agreement.

 

SECTION 2.05.  Swingline Borrowings. 
(a) Subject to the terms and conditions set forth herein, the
Swingline Bank agrees to make Swingline Loans to the Borrower from time to time
during the Revolving Credit Period, in an aggregate principal amount at any
time outstanding that will not result in (i) the aggregate principal
amount of outstanding Swingline Loans exceeding $25,000,000 or (ii) the
sum of the total Revolving Exposures exceeding the total Commitments; provided
that the Swingline Bank shall not be required to make a Swingline Loan to
refinance an outstanding Swingline Loan. 
Within the foregoing limits and subject to the terms and conditions set
forth herein, the Borrower may borrow, prepay and reborrow Swingline Loans.

 

(b)                                 Swingline Loan Requests. 
To request a Swingline Loan, the Borrower shall notify the
Administrative Agent of such request by telephone (confirmed by telecopy), not
later than 12:00 noon, New York City time, 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 Bank of any such notice received from the Borrower.  The Swingline Bank shall make each Swingline
Loan available to the Borrower by means of a credit to the general deposit
account of the Borrower with the Swingline Bank (or, in the case of a Swingline
Loan made to finance the reimbursement of an LC Disbursement as provided in Section 2.17(e),
by remittance to the applicable Issuing Bank) by 3:00 p.m., New York City
time, on the requested date of such Swingline Loan.  Each Swingline Loan shall be in an amount
that is an integral multiple of $100,000 and not less than $500,000.

 

(c)                                  Participations in Swingline Loans. 
The Swingline Bank may by written notice given to the Administrative
Agent not later than 10:30 A.M. (New York City time) on any Business Day
require the Banks to acquire participations on such Business Day in all or a
portion of the Swingline Loans outstanding. 
Such notice shall specify the aggregate amount of Swingline Loans in
which Banks will participate.  Promptly
upon receipt of such notice, the Administrative Agent will give notice thereof
to each Bank, specifying in such notice such Bank’s Applicable Percentage of
such Swingline Loan or Loans.  Each Bank
hereby absolutely and unconditionally agrees, upon receipt of notice as
provided

 

16

 

above, to pay to
the Administrative Agent, for the account of the Swingline Bank, such Bank’s
Applicable Percentage of such Swingline Loan or Loans.  Each Bank 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, including the occurrence and continuance of a Default
or reduction or termination of the Commitments, and that each such payment
shall be made without any offset, abatement, withholding or reduction
whatsoever.  Each Bank shall comply with
its obligation under this paragraph by wire transfer of immediately available
funds, in the same manner as provided in Section 2.04 with respect to
Loans made by such Bank (and Section 2.04 shall apply, mutatis  mutandis,
to the payment obligations of the Banks), and the Administrative Agent shall
promptly pay to the Swingline Bank the amounts so received by it from the
Banks.  The Administrative Agent shall
notify the 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 Bank.  Any amounts received by
the Swingline Bank from the Borrower (or other party on behalf of the Borrower)
in respect of a Swingline Loan after receipt by the Swingline Bank of the
proceeds of a sale of participations therein shall be promptly remitted to the
Administrative Agent; any such amounts received by the Administrative Agent
shall be promptly remitted by the Administrative Agent to the Banks that shall
have made their payments pursuant to this paragraph and to the Swingline Bank,
as their interests may appear; provided that any such payment so remitted shall
be repaid to the Swingline Bank or to the Administrative Agent, as applicable,
if and to the extent such payment is required to be refunded to the Borrower
for any reason.  The purchase of
participations in a Swingline Loan pursuant to this paragraph shall not relieve
the Borrower of any default in the payment thereof.

 

SECTION 2.06.  Repayment of Loans; Evidence of Debt.  (a) The Borrower hereby unconditionally
promises to pay (i) to the Administrative Agent for the account of each
Bank the then unpaid principal amount of each Committed Loan on the Termination
Date, (ii) to the Administrative Agent for the account of each Bank the
then unpaid principal amount of each Money Market Loan on the last day of the
Interest Period applicable to such Loan and (iii) to the Administrative
Agent for the benefit of the Swingline Bank the then unpaid principal amount of
each Swingline Loan on the earlier of the Termination Date and the first date
after such Swingline Loan is made that is the 15th or last day of a calendar
month and is at least two Business Days after such Swingline Loan is made; provided
that on each date that a Committed Loans or Money Market Loan is made, the
Borrower shall repay all Swingline Loans then outstanding.

 

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

 

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

 

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

 

17

 

(e)                                  Any Bank may request that Loans made by
it be evidenced by a promissory note.  In
such event, the Borrower shall prepare, execute and deliver to such Bank a
promissory note payable to the order of such Bank (or, if requested by such
Bank, to such Bank and its registered assigns) and in substantially the form of
Exhibit A hereto.  Thereafter, the
Loans evidenced by such promissory note and interest thereon shall at all times
(including after assignment pursuant to Section 9.06) be represented by
one or more promissory notes in such form payable to the order of the payee
named therein (or, if such promissory note is a registered note, to such payee
and its registered assigns).

 

SECTION 2.07.  Maturity of Loans.  (a) Each
Committed Loan shall mature, and the principal amount thereof shall be due and
payable (together with interest accrued thereon), on the Termination Date.

 

(b)                                 Each Money Market Loan shall mature, and
the principal amount thereof shall be due and payable (together with interest
accrued thereon), on the last day of the Interest Period applicable thereto.

 

(c)                                  Each Swingline Loan shall mature, and the
principal amount thereof shall be due and payable (together with interest
accrued thereon) as provided in Section 2.06(a)(iii) and Section 2.08.

 

SECTION 2.08.  Interest Rates.  (a) Each
Base Rate Loan (including each Swingline Loan, which may only accrue interest
under the terms of this clause (a)) shall bear interest on the outstanding
principal amount thereof, for each day from the date such Loan is made until it
becomes due, at a rate per annum equal to the Base Rate for such day plus the
Base Margin.  Such interest shall be
payable quarterly in arrears on each Quarterly Payment Date and on the
Termination Date and, with respect to the principal amount of any Base Rate
Loan that is prepaid or converted to a CD Loan or Euro–Dollar Loan, on the date
of such prepayment or conversion; provided that interest on Swingline Loans
shall be due and payable on the day that such Swingline Loan is required to be
repaid.  Any overdue principal of or
interest on any Base Rate Loan shall bear interest, payable on demand, for each
day until paid at a rate per annum equal to the sum of 2% plus the rate
otherwise applicable to Base Rate Loans for such day.

 

(b)                                 Each CD Loan shall bear interest on the
outstanding principal amount thereof, for each day during each Interest Period
applicable thereto, at a rate per annum equal to the sum of the CD Margin for
such day plus the Adjusted CD Rate applicable to such Interest Period; provided that if any CD Loan shall, as a result of
clause (2)(b) of the definition of Interest Period, have an Interest
Period of less than 30 days, such CD Loan shall bear interest during such
Interest Period at the rate applicable to Base Rate Loans during such
period.  Such interest shall be payable
for each Interest Period on the last day thereof and, if such Interest Period
is longer than 90 days, at intervals of 90 days after the first day thereof
and, with respect to the principal amount of any CD Loan that is prepaid or
converted to a Base Rate Loan or Euro–Dollar Loan, on the date of such
prepayment or conversion.  Any overdue
principal of or interest on any CD Loan shall bear interest, payable on demand,
for each day until paid at a rate per annum equal to the sum of 2% plus the
higher of (i) the sum of the CD Margin for such day plus the Adjusted CD
Rate applicable to such Loan on the day before such payment was due and (ii) the
rate applicable to Base Rate Loans for such day.

 

18

 

The “Adjusted CD Rate” applicable to any Interest Period means a
rate per annum determined pursuant to the following formula:

 

	
  ACDR =

  	
  [       CDBR      ]*

  
	
   

  	
  [------------------]    + AR

  
	
   

  	
  [1.00   –   DRP]

  

 

	
  ACDR = Adjusted CD Rate

  
	
  CDBR = CD Base Rate

  
	
  DRP = Domestic Reserve Percentage

  
	
  AR = Assessment Rate

  

 

*The amount in brackets being rounded upward, if
necessary, to the next higher 1/100 of l%

 

The “CD Base Rate” applicable to any Interest Period is the rate
of interest determined by the Administrative Agent to be the average (rounded
upward, if necessary, to the next higher 1/100 of 1%) of the prevailing rates
per annum bid at 10:00 A.M. (New York City time) (or as soon thereafter as
practicable) on the first day of such Interest Period by two or more New York
certificate of deposit dealers of recognized standing for the purchase at face
value from the CD Reference Bank of its certificates of deposit in an amount
comparable to the principal amount of the CD Loan of such CD Reference Bank to
which such Interest Period applies and having a maturity comparable to such
Interest Period.

 

“Domestic Reserve Percentage” means for any day that
percentage (expressed as a decimal) which is in effect on such day, as
prescribed by the Board of Governors of the Federal Reserve System (or any
successor) for determining the maximum reserve requirement (including without
limitation any basic, supplemental or emergency reserves) for a member bank of
the Federal Reserve System in New York City with deposits exceeding five
billion dollars in respect of new non–personal time deposits in dollars in New
York City having a maturity comparable to the related Interest Period and in an
amount of $100,000 or more.  The Adjusted
CD Rate shall be adjusted automatically on and as of the effective date of any
change in the Domestic Reserve Percentage.

 

“Assessment Rate”
means for any day the annual assessment rate in effect on such day which is
payable by a member of the Bank Insurance Fund classified as adequately
capitalized and within supervisory subgroup ”A” (or a comparable successor
assessment risk classification) within the meaning of 12 C.F.R. § 327.4(a) (or
any successor provision) to the Federal Deposit Insurance Corporation (or any
successor) for such Corporation’s (or such successor’s) insuring time deposits
at offices of such institution in the United States.  The Adjusted CD Rate shall be adjusted
automatically on and as of the effective date of any change in the Assessment
Rate.

 

(c)                                  Each Euro–Dollar Loan shall bear interest
on the outstanding principal amount thereof, for each day during each Interest
Period applicable thereto, at a rate per annum equal to the sum of the
Euro–Dollar Margin for such day plus the Adjusted London Interbank Offered Rate
applicable to such Interest Period.  Such
interest shall be payable for each Interest Period on the last day thereof and,
if such Interest Period is longer than three months, at intervals of three
months after the first day thereof and, with respect to the principal amount of
any Euro–Dollar Loan or CD Loan that is prepaid or converted to a Base Rate
Loan, on the date of such prepayment or conversion.

 

The “Adjusted London Interbank Offered Rate” applicable to any
Interest Period means a rate per annum equal to the quotient obtained (rounded
upward, if necessary, to the next higher 1/100 of 1%)

 

19

 

by
dividing (i) the applicable London Interbank Offered Rate by (ii) 1.00
minus the Euro–Dollar Reserve Percentage.

 

The “London Interbank Offered Rate” means, with respect to any
Euro–Dollar Borrowing for any Interest Period, the rate appearing on Page 3750
of the Dow Jones Market Service (or on any successor or substitute page of
such Service, or any successor to or substitute for such Service, providing
rate quotations comparable to those currently provided on such page of
such Service, as determined by the Administrative Agent from time to time for
purposes of providing quotations of interest rates applicable to dollar
deposits in the London interbank market) at approximately 11:00 a.m.,
London time, two Euro–Dollar Business Days prior to the commencement of such
Interest Period, as the rate for dollar deposits with a maturity comparable to
such Interest Period.  In the event that
such rate is not available at such time for any reason, then the “London
Interbank Offered Rate” with respect to such Euro–Dollar Borrowing for such
Interest Period shall be the rate at which dollar deposits of $5,000,000 and
for a maturity comparable to such Interest Period are offered by the principal
London office of JPMorgan Chase Bank in immediately available funds in the
London interbank market at approximately 11:00 a.m., London time, two
Euro–Dollar Business Days prior to the commencement of such Interest Period.

 

“Euro–Dollar Reserve Percentage” means for any day that
percentage (expressed as a decimal) which is in effect on such day, as
prescribed by the Board of Governors of the Federal Reserve System (or any
successor) for determining the maximum reserve requirement for a member bank of
the Federal Reserve System in New York City with deposits exceeding five
billion dollars in respect of “Eurocurrency liabilities” (or in respect of any
other category of liabilities which includes deposits by reference to which the
interest rate on Euro–Dollar Loans is determined or any category of extensions
of credit or other assets which includes loans by a non–United States office of
any Bank to United States residents). 
The Adjusted London Interbank Offered Rate shall be adjusted
automatically on and as of the effective date of any change in the Euro–Dollar
Reserve Percentage.

 

(d)                                 Any overdue principal of or interest on
any Euro–Dollar Loan shall bear interest, payable on demand, for each day until
paid at a rate per annum equal to the higher of (i) the sum of 2% plus the
Euro–Dollar Margin for such day plus the Adjusted London Interbank Offered Rate
applicable to such Loan on the day before such payment was due and (ii) the
sum of 2% plus the Euro–Dollar Margin for such day plus the quotient obtained
(rounded upward, if necessary, to the next higher 1/100 of 1%) by dividing
(x) the average (rounded upward, if necessary, to the next higher 1/16 of
1%) of the respective rates per annum at which one day (or, if such amount due
remains unpaid more than three Euro–Dollar Business Days, then for such other
period of time not longer than three months as the Administrative Agent may
select) deposits in dollars in an amount approximately equal to such overdue
payment due to the Euro–Dollar Reference Bank are offered to the Euro–Dollar
Reference Bank in the London interbank market for the applicable period
determined as provided above by (y) 1.00 minus the Euro–Dollar Reserve
Percentage (or, if the circumstances described in clause (a) or (b) of
Section 8.01 shall exist, at a rate per annum equal to the sum of 2% plus
the rate applicable to Base Rate Loans for such day).

 

(e)                                  Subject to Section 8.01, each Money
Market LIBOR Loan shall bear interest on the outstanding principal amount
thereof, for the Interest Period applicable thereto, at a rate per annum equal
to the sum of the London Interbank Offered Rate for such Interest Period
(determined in accordance with Section 2.08(c) as if the related
Money Market LIBOR Borrowing were a Committed Euro–Dollar Borrowing) plus (or
minus) the Money Market Margin quoted by the Bank making such Loan in
accordance with Section 2.03.  Each
Money Market Absolute Rate Loan shall bear interest on the outstanding
principal amount thereof, for the Interest Period applicable thereto, at a rate
per annum equal to the Money Market Absolute Rate quoted by the Bank making
such Loan in accordance with Section 2.03. 
Such interest shall be payable for each Interest Period on the last day
thereof and, if such Interest Period is longer than three months, at intervals
of three months after the first day thereof. 
Any

 

20

 

overdue principal
of or interest on any Money Market Loan shall bear interest, payable on demand,
for each day until paid at a rate per annum equal to the sum of 2% plus the
Base Rate for such day.

 

(f)                                    The Administrative Agent shall determine
each interest rate applicable to the Loans hereunder.  The Administrative Agent shall give prompt
notice to the Borrower and the participating Banks of each rate of interest so
determined, and its determination thereof shall be conclusive in the absence of
manifest error.

 

SECTION 2.09.  Fees.  (a) The
Borrower shall pay to the Administrative Agent for the account of the Banks
ratably a facility fee at the Facility Fee Rate (determined daily in accordance
with the Pricing Schedule).  Such
facility fee shall accrue (i) from and including the Effective Date to but
excluding the date of termination of the Commitments in their entirety, on the
daily aggregate amount of the Commitments (whether used or unused) and (ii) from
and including such date of termination to but excluding the date the Revolving
Exposure shall be repaid or no longer outstanding, on the daily aggregate
outstanding amount of the Revolving Exposure. 
Accrued fees under this subsection shall be payable quarterly in
arrears on each Quarterly Payment Date and on the date of termination of the
Commitments in their entirety (and, if later, the date the Revolving Exposure
shall be repaid or no loner outstanding).

 

(b)                                 The Borrower agrees to pay (i) to
the Administrative Agent for the account of each Bank a participation fee with
respect to its participations in Letters of Credit, which shall accrue at the
Euro–Dollar Margin on the average daily amount of such Bank’s LC Exposure
(excluding any portion thereof attributable to unreimbursed LC Disbursements)
during the period from and including the Effective Date to but excluding the later
of the date on which such Bank’s Commitment terminates and the date on which
such Bank ceases to have any LC Exposure, and (ii) to each Issuing Bank a
fronting fee, which shall accrue at the rate of 1/8 % per annum on the average
daily amount of the LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) attributable to the Letters of Credit issues by
each such Issuing Bank during the period from and including the Effective Date
to but excluding the later of the date of termination of the Commitments and
the date on which there ceases to be any such LC Exposure, as well as each
Issuing Bank’s standard fees with respect to the issuance, amendment, renewal
or extension of any Letter of Credit or processing of drawings thereunder.  Participation fees and fronting fees accrued
through and including the last day of March, June, September and December of
each year shall be payable on the third Business Day following such last day,
commencing on the first such date to occur after the Effective Date; provided that all such fees shall be payable on the date on
which the Commitments terminate and any such fees accruing after the date on
which the Commitments terminate shall be payable on demand.  Any other fees payable to an Issuing Bank
pursuant to this paragraph shall be payable within 10 days after demand.

 

(c)                                  All fees payable hereunder shall be paid
on the dates due, in immediately available funds, to the Administrative Agent
(or to the applicable Issuing Bank, in the case of fees payable to it) for
distribution, in the case of facility fees and participation fees, to the
Banks.

 

SECTION 2.10.  Optional Termination or Reduction of Commitments.  During the Revolving Credit Period, the
Borrower may, upon at least three Domestic Business Days’ notice to the
Administrative Agent, (i) terminate the Commitments at any time, if no
Loans or Letters of Credit are outstanding at such time or (ii) ratably
reduce from time to time by an aggregate amount of $10,000,000 or a larger
multiple of $1,000,000, the aggregate amount of the Commitments in excess of
the aggregate outstanding Revolving Exposure. 
Promptly after receiving a notice pursuant to this subsection, the
Administrative Agent shall notify each Bank of the contents thereof.  Any termination or reduction of the
Commitments shall be permanent.

 

21

 

SECTION 2.11.  Mandatory Termination of Commitments.  The Commitments shall terminate on the
Termination Date and any Loans then outstanding (together with accrued interest
thereon) shall be due and payable on such date.

 

SECTION 2.12.  Optional Prepayments. 
(a) Subject in the case of Fixed Rate Loans to Section 2.14,
the Borrower may (i) upon at least one Domestic Business Day’s notice to
the Administrative Agent, prepay any Group of Domestic Loans (or any Money
Market Borrowing bearing interest at the Base Rate pursuant to Section 8.01
but not including Swingline Loans under this sentence), or (ii) upon at
least three Euro–Dollar Business Days’ notice to the Administrative Agent,
prepay any Group of Euro–Dollar Loans, in each case in whole at any time, or
from time to time in part in amounts aggregating $10,000,000 or any larger
multiple of $1,000,000, by paying the principal amount to be prepaid together
with interest accrued thereon to the date of prepayment.  Each such optional prepayment shall be
applied to prepay ratably the Loans of the several Banks included in such Group
of Loans (or such Money Market Borrowing). 
By notice given not later than 12:00 Noon (New York City time) on
the date of prepayment, the Borrower may prepay any Swingline Loan in whole at
any time, or from time to time in part in amounts aggregating $500,000 or any
larger multiple of $100,000, by paying the principal amount to be prepaid
together with interest accrued thereon to the date of prepayment.

 

(b)                                 Except as provided in Section 2.12(a),
the Borrower may not prepay all or any portion of the principal amount of any
Money Market Loan prior to the maturity thereof.

 

(c)                                  Upon receipt of a notice of prepayment
pursuant to this Section, the Administrative Agent shall promptly notify each
Bank of the contents thereof and of such Bank’s ratable share (if any) of such
prepayment and such notice shall not thereafter be revocable by the Borrower.

 

SECTION 2.13.  General Provisions as to Payments.  (a) The Borrower shall make each payment
hereunder (whether of principal of, interest fees, reimbursement of all LC
Disbursements and amounts payable under Article 8), not later than
12:00 Noon (New York City time) on the date when due, in Federal or other
funds immediately available in New York City, to (unless otherwise provided
herein) the Administrative Agent at its address referred to in Section 9.01
and without reduction by reason of any set–off or counterclaim.  The Administrative Agent will promptly
distribute to the parties entitled thereto its ratable share of each such
payment received by the Administrative Agent for the account of the Banks or
the applicable Issuing Bank.  Whenever
any payment of principal of, or interest on, the Domestic Loans or of fees
shall be due on a day which is not a Domestic Business Day, the date for
payment thereof shall be extended to the next succeeding Domestic Business
Day.  Whenever any payment of principal
of, or interest on, the Euro–Dollar Loans or Money Market LIBOR Loans shall be
due on a day which is not a Euro–Dollar Business Day, the date for payment
thereof shall be extended to the next succeeding Euro–Dollar Business Day
unless such Euro–Dollar Business Day falls in another calendar month, in which
case the date for payment thereof shall be the next preceding Euro–Dollar
Business Day.  Whenever any payment of
principal of, or interest on, the Money Market Absolute Rate Loans shall be due
on a day which is not a Euro–Dollar Business Day, the date for payment thereof
shall be extended to the next succeeding Euro–Dollar Business Day.  If the date for any payment of principal is
extended by operation of law or otherwise, interest thereon shall be payable
for such extended time.

 

(b)                                 Unless the Administrative Agent shall
have received notice from the Borrower prior to the date on which any payment
is due to the Banks or an Issuing Bank hereunder that the Borrower will not
make such payment in full, the Administrative Agent may assume that the
Borrower has made such payment in full to the Administrative Agent on such date
and the Administrative Agent may, in reliance upon such assumption, cause to be
distributed to each Bank or the applicable Issuing Bank, as applicable, on such
due date an amount equal to the amount then due such Bank or the applicable
Issuing Bank, as applicable.  If and to
the extent that the Borrower shall not have so made such

 

22

 

payment, each Bank
and each Issuing Bank shall repay to the Administrative Agent forthwith on
demand such amount distributed to it together with interest thereon, for each
day from the date such amount is distributed until the date such Bank or Issuing
Bank, as applicable, repays such amount to the Administrative Agent, at the
Federal Funds Rate.

 

SECTION 2.14.  Funding Losses.  If
the Borrower makes any payment of principal with respect to any Fixed Rate Loan
or any Fixed Rate Loan is converted to a different type of Loan (whether such
payment or conversion is pursuant to Article 2, 6 or 8 or otherwise) on
any day other than the last day of an Interest Period applicable thereto, or
the last day of an applicable period fixed pursuant to Section 2.08(d), or
if the Borrower fails to borrow, prepay, convert or continue any Fixed Rate
Loan after notice has been given to any Bank in accordance with Section 2.04(a),
2.12(c) or 2.16(c), the Borrower shall reimburse each Bank within 15 days
after demand for any resulting loss or expense incurred by it (or by an
existing or prospective Participant in the related Loan), including (without
limitation) any loss incurred in obtaining, liquidating or employing deposits
from third parties, but excluding loss of margin for the period after such
payment or conversion or failure to borrow, prepay, convert or continue; provided that such Bank shall have delivered to the Borrower
a certificate as to the amount of such loss or expense, along with such
supplemental information as the Borrower may reasonably request, which
certificate shall be conclusive in the absence of manifest error.

 

SECTION 2.15.  Computation of Interest and Fees.  Interest based on the Prime Rate hereunder
shall be computed on the basis of a year of 365 days (or 366 days in a leap
year) and paid for the actual number of days elapsed (including the first day
but excluding the last day).  All other
interest and fees shall be computed on the basis of a year of 360 days and paid
for the actual number of days elapsed (including the first day but excluding
the last day).

 

SECTION 2.16.  Method of Electing Interest Rates.  (a) The Loans included in each Committed
Borrowing shall bear interest initially at the type of rate specified by the
Borrower in the applicable Notice of Committed Borrowing.  Thereafter, the Borrower may from time to
time elect to change or continue the type of interest rate borne by each Group
of Loans (subject to Section 2.16(d) and the provisions of Article 8),
as follows:

 

(i)                                     if such Loans are Base Rate Loans, the
Borrower may elect to convert such Loans to CD Loans as of any Domestic
Business Day or to Euro–Dollar Loans as of any Euro–Dollar Business Day; and

 

(ii)                                  if such Loans are CD Loans, the Borrower
may elect to convert such Loans to Base Rate Loans as of any Domestic Business
Day, or convert such Loans to Euro–Dollar Loans as of any Euro–Dollar Business
Day or continue such Loans as CD Loans, as of the end of any Interest Period
applicable thereto, for an additional Interest Period, subject to Section 2.14
if any such conversion is effective on any day other than the last day of an
Interest Period applicable to such Loans; and

 

(iii)                               if such Loans are Euro–Dollar Loans, the
Borrower may elect to convert such Loans to Base Rate Loans as of any Domestic
Business Day, or convert such Loans to CD Loans as of any Euro–Dollar Business
Day or may elect to continue such Loans as Euro–Dollar Loans, as of the end of
any Interest Period applicable thereto, for an additional Interest Period, subject
to Section 2.14 if any such conversion is effective on any day other than
the last day of an Interest Period applicable to such Loans.

 

Each such election shall be made by delivering a notice (a “Notice of Interest Rate Election”) to the Administrative
Agent not later than 10:30 A.M. (New York City time):  (A) in the case of conversion to or
continuation of a Euro–Dollar Loan, on the third Euro–Dollar Business Day
before the conversion or

 

23

 

continuation selected in such notice is to be effective; (B) in
the case of conversion to or continuation of a CD Rate Loan, on the second
Domestic Business Day before such conversion or continuation is to be
effective; and (C)  in the case of conversion to a Base Rate Loan, on the
Domestic Business Day of the conversion. 
A Notice of Interest Rate Election may, if it so specifies, apply to
only a portion of the aggregate principal amount of the relevant Group of
Loans; provided that (i) such portion is
allocated ratably among the Loans comprising such Group and (ii) the
portion to which such Notice applies, and the remaining portion to which it
does not apply, are each at least $10,000,000 (unless such portion is comprised
of Base Rate Loans).  If no such notice
is timely received before the end of an Interest Period for any Group of
Euro–Dollar Loans, the Borrower shall be deemed to have elected that such Group
of Loans be converted to Base Rate Loans at the end of such Interest Period.

 

(b)                                 Each Notice of Interest Rate Election
shall specify:

 

(i)                                     the Group of Loans (or portion thereof)
to which such notice applies;

 

(ii)                                  the date on which the conversion or
continuation selected in such notice is to be effective, which shall comply
with the applicable clause of Section 2.16(a);

 

(iii)                               if the Loans comprising such Group are to
be converted, the new type of Loans and, if the Loans resulting from such
conversion are to be CD Loans or Euro–Dollar Loans, the duration of the next
succeeding Interest Period applicable thereto; and

 

(iv)                              if such Loans are to be continued as CD
Loans or Euro–Dollar Loans for an additional Interest Period, the duration of
such additional Interest Period.

 

Each Interest Period specified in a Notice of Interest Rate Election
shall comply with the provisions of the definition of Interest Period.

 

(c)                                  Promptly after receiving a Notice of
Interest Rate Election from the Borrower pursuant to Section 2.15(a), the
Administrative Agent shall notify each Bank of the contents thereof and such
notice shall not thereafter be revocable by the Borrower.

 

(d)                                 The Borrower shall not be entitled to
elect to convert any Committed Loans to, or continue any Committed Loans for an
additional Interest Period as, CD Loans or Euro–Dollar Loans if (i) the
aggregate principal amount of any Group of CD Loans or Euro–Dollar Loans
created or continued as a result of such election would be less than
$10,000,000 or (ii) a Default shall have occurred and be continuing when
the Borrower delivers notice of such election to the Administrative Agent.

 

(e)                                  If any Committed Loan is converted to a
different type of Loan, the Borrower shall pay, on the date of such conversion,
the interest accrued to such date on the principal amount being converted.

 

(f)                                    This section shall
not apply to Swingline Loans.  Swingline Loans shall accrue interest as
Base Rate Loans and the Borrower may not at any time elect to change the type
of interest rate borne by the Swingline Loans.

 

SECTION 2.17.  Letters of Credit.  (a) General.  Subject to
the terms and conditions set forth herein, the Borrower may request the
issuance of letters of credit for its own account, in a form reasonably
acceptable to the Administrative Agent and the applicable Issuing Bank, at any
time and from time to time during the Revolving Credit Period.

 

24

 

(b)                                 Notice of Issuance, Amendment,
Renewal, Extension; Certain Conditions.  To request
the issuance of a letter of credit (or the amendment, renewal or extension of
an outstanding Letter of Credit), the Borrower shall hand deliver or telecopy
(or transmit by electronic communication, if arrangements for doing so have
been approved by the applicable Issuing Bank) to the applicable Issuing Bank
and the Administrative Agent (reasonably in advance of the requested date of
issuance, amendment, renewal or extension) a notice requesting the issuance of
a Letter of Credit, or identifying the Letter of Credit to be amended, renewed
or extended, and specifying the date of issuance, amendment, renewal or
extension (which shall be a Domestic Business Day), the date on which such
Letter of Credit is to expire (which shall comply with paragraph (c) of
this Section), the amount of such Letter of Credit, the name and address of the
beneficiary thereof and such other information as shall be necessary to
prepare, amend, renew or extend such Letter of Credit.  If requested by the applicable Issuing Bank
in connection with any request for a Letter of Credit, the Borrower also shall
submit a letter of credit application on the applicable Issuing Bank’s standard
form (with such changes thereto as may be acceptable to the applicable Issuing
Bank and the Borrower).  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 the Borrower to, or entered into by the Borrower with,
the applicable Issuing Bank relating to any Letter of Credit, the terms and
conditions of this Agreement shall control. 
A Letter of Credit shall be issued, amended, renewed or extended only if
(and upon issuance, amendment, renewal or extension of each Letter of Credit
the Borrower shall be deemed to represent and warrant that), after giving
effect to such issuance, amendment, renewal or extension (i) the LC
Exposure shall not exceed $50,000,000 and (ii) the total Revolving
Exposures shall not exceed the total Commitments.

 

(c)                                  Expiration Date. 
Each Letter of Credit shall expire no later than the date that is five Domestic
Business Days prior to the Termination Date.

 

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

 

(e)                                  Reimbursement. 
If an Issuing Bank shall make any LC Disbursement in respect of a
Letter of Credit, the Borrower shall reimburse such LC Disbursement by
paying to the Administrative Agent an amount equal to such LC Disbursement
not later than 12:00 noon, New York City time, on the date that such
LC Disbursement is made, if the Borrower shall have received notice of
such LC Disbursement prior to 10:00 A.M., New York City time, 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, New York City time on
the Domestic Business Day immediately following the day that the Borrower
receives such notice; provided that
the Borrower may, subject to the conditions to borrowing set forth herein,
request in accordance with Section 2.02 or Section 2.05(b) that
such payment be financed with a Base Rate 

 

25

 

Borrowing
(including a 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 Base Rate
Borrowing.  If the Borrower fails to make
such payment when due, the Administrative Agent shall notify each Bank of the
applicable LC Disbursement, the payment then due from the Borrower in
respect thereof and such Bank’s Applicable Percentage thereof.  Promptly following receipt of such notice,
each Bank shall pay to the Administrative Agent its Applicable Percentage of
the payment then due from the Borrower, in the same manner as provided in Section 2.04
with respect to Loans made by such Bank (and Section 2.04 shall apply, mutatis  mutandis, to
the payment obligations of the Banks), and the Administrative Agent shall
promptly pay to the applicable Issuing Bank the amounts so received by it from
the Banks.  Promptly following receipt by
the Administrative Agent of any payment from the Borrower pursuant to this
paragraph, the Administrative Agent shall distribute such payment to the
applicable Issuing Bank or, to the extent that Banks have made payments
pursuant to this paragraph to reimburse the applicable Issuing Bank, then to
such Banks and the applicable Issuing Bank as their interests may appear.  Any payment made by a Bank pursuant to this
paragraph to reimburse an Issuing Bank for any LC Disbursement (other than
the funding of Base Rate Borrowing as contemplated above) shall not constitute
a Loan and shall not relieve the Borrower of its obligation to reimburse such
LC Disbursement.

 

(f)                                    Obligations Absolute. 
The Borrower’s obligation to reimburse LC Disbursements as provided in
paragraph (e) of this Section shall, subject to the following
sentence, be absolute, unconditional and irrevocable, and shall be performed
strictly in accordance with the terms of this Agreement under any and all
circumstances whatsoever and irrespective of (i) any lack of validity or
enforceability of any Letter of Credit or this Agreement, or any 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 with the terms of such Letter of Credit, or
(iv) any other event or circumstance whatsoever, whether or not similar to
any of the foregoing, that might, but for the provisions of this Section,
constitute a legal or equitable discharge of, or provide a right of setoff
against, the Borrower’s obligations hereunder. 
Neither the Administrative Agent, the Banks nor any Issuing Bank, nor
any of their Indemnitees shall have any liability or responsibility by reason
of or in connection with the issuance or transfer of any Letter of Credit or
any payment or failure to make any payment thereunder (irrespective of any of
the circumstances referred to in the preceding sentence), or any error,
omission, interruption, loss or delay in transmission or delivery of any draft,
notice or other communication under or relating to any Letter of Credit
(including any document required to make a drawing thereunder), any error in
interpretation of technical terms or any consequence arising from causes beyond
the control of an Issuing Bank; provided that
the foregoing shall not be construed to excuse an Issuing Bank from liability
to the Borrower to the extent of any damages (but excluding consequential
damages, claims in respect of which are hereby waived by the Borrower to the
extent permitted by applicable law) suffered by the Borrower that are caused by
or attributable to an Issuing Bank’s failure to exercise care when determining
whether drafts and other documents presented under a Letter of Credit comply
with the terms thereof.  The parties
hereto expressly agree that, in the absence of gross negligence or willful
misconduct on the part of an Issuing Bank (as finally determined by a court of
competent jurisdiction), each Issuing Bank shall be deemed to have exercised
care in each such determination.  In
furtherance of the foregoing and without limiting the generality thereof, the
parties agree that, with respect to documents presented which appear on their
face to be in substantial compliance with the terms of a Letter of Credit, an
Issuing Bank may, in its sole discretion, either accept and make payment upon
such documents without responsibility for further investigation, unless the
applicable Issuing Bank has notice or information to the contrary, or refuse to
accept and make payment upon such documents if such documents are not in strict
compliance with the terms of such Letter of Credit.

 

26

 

(g)                                 Disbursement Procedures. 
Each Issuing Bank shall, promptly following its receipt thereof, examine
all documents purporting to represent a demand for payment under each one of
its Letters of Credit.  Each Issuing Bank
shall promptly notify the Administrative Agent and the Borrower of a demand for
payment under a Letter of Credit it has issued and whether it 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 its obligation to reimburse the applicable Issuing Bank and the
Banks with respect to any such LC Disbursement.

 

(h)                                 Interim Interest. 
If an Issuing Bank shall make any LC Disbursement, then, 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 the Borrower reimburses such LC Disbursement, at the rate per annum then
applicable to Base Rate Borrowings; provided that,
if the Borrower fails to reimburse such LC Disbursement when due pursuant
to paragraph (e) of this Section, then the last sentence of Section 2.08(a) shall
apply.  Interest accrued pursuant to this
paragraph shall be for the account of the applicable Issuing Bank, except that
interest accrued on and after the date of payment by any Bank pursuant to
paragraph (e) of this Section to reimburse the applicable
Issuing Bank shall be for the account of such Bank to the extent of such
payment.

 

(i)                                     Replacement of an Issuing Bank. 
Any 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 Banks of any such replacement of an 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 pursuant to this Section 2.17 and Article 8.
From and after the effective date of any such replacement, (i) the
successor Issuing Bank shall have all the rights and obligations of the
replaced 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 include 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.

 

(j)                                     Cash Collateralization. 
If any Event of Default shall occur and be continuing, on the Domestic
Business Day that the Borrower receives notice from the Administrative Agent or
the Required Banks (or, if the maturity of the Loans has been accelerated,
Banks with LC Exposure representing greater than 51% of the total
LC Exposure) demanding the deposit of cash collateral pursuant to this
paragraph, the Borrower shall deposit in an account with the Administrative Agent,
in the name of the Administrative Agent and for the benefit of the Banks, 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 the Borrower described in clause (g) or (h) of Article 6.
 Each 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 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 the Issuing Banks for LC Disbursements which have not been
reimbursed and, to the extent not so applied, shall be held for the 

 

27

 

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 the Required Banks), 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 Domestic
Business Days after all Events of Default have been cured or waived.

 

SECTION 2.18.  Increase of Commitments.  By written notice sent to the
Administrative Agent (which the Administrative Agent shall promptly distribute
to the Banks), the Borrower may request from time to time an increase of the
aggregate amount of the Commitments by an aggregate amount equal to any
integral multiple of $5,000,000 and not less than $10,000,000; provided that (i) no Default shall have occurred and be
continuing, (ii) the aggregate amount of the Commitments shall not have
been reduced, nor shall the Borrower have given notice of any such reduction
under Section 2.10, (iii) the aggregate amount of the Commitments can
not be increased pursuant to this Section 2.18 more than three (3) times;
and (iv) the Commitments may not be increased to an aggregate amount that
exceeds $350,000,000.  No Bank shall have
any obligation to increase its Commitment. 
A Bank’s decision whether to increase its Commitment under this Section 2.18
if it is requested to do so shall be made in such Bank’s sole and absolute
disrection and any failure to respond to a request shall be deemded to be a
decsion by such Bank that it will not increase its Commitment.  If one or more of the Banks is not increasing
its Commitment, then, with notice to the Administrative Agent and the other
Banks, another one or more financial institutions, each as approved by the Borrower
and the Administrative Agent (a “New Bank”), may
commit to provide an amount equal to the aggregate amount of the requested
increase that will not be provided by the existing Banks (the “Increase Amount”); provided, that
the Commitment of each New Bank shall be at least $5,000,000 and the maximum
number of New Banks shall be three (3). 
Upon receipt of notice from the Administrative Agent to the Banks and
the Borrower that the Banks, or sufficient Banks and New Banks, have agreed to
commit to an aggregate amount equal to the Increase Amount (or such lesser
amount as the Borrower shall agree, which shall be at least $10,000,000 and an
integral multiple of $5,000,000 in excess thereof), then: provided that no
Default exists at such time or after giving effect to the requested increase,
the Borrower, the Administrative Agent and the Banks willing to increase their
respective Commitments and the New Banks (if any) shall execute and deliver an Increased Commitment Supplement (herein so called) in the
form attached hereto as Exhibit G hereto. 
If all existing Banks shall not have provided their pro rata portion of
the requested increase, on the effective date of the Increased Commitment
Supplement the Banks shall make advances among themselves (which may be through
the Administrative Agent) so that after giving effect thereto the Committed
Loans will be held by the Banks, pro rata in accordance with their respective
Applicable Percentages hereunder.  The
advances made under this Section by each Bank whose Applicable Percentage
is new or has increased under the Increased Commitment Supplement (as compared
to its Applicable Percentage prior to the effectiveness of the Increased
Commitment Supplement) shall be deemed to be a purchase of a corresponding
amount of the Committed Loans of the Bank or Banks whose Applicable Percentage
has decreased (as compared to its Applicable Percentage prior to the
effectiveness of the Increased Commitment Supplement).  The advances made under this Section shall
be Base Rate Borrowings made under each Bank’s Commitment unless another type
of Borrowing is selected by the Borrower to be applicable thereto.

 

28

 

ARTICLE 3

CONDITIONS

 

SECTION 3.01.  Closing.  The
effectiveness of this Agreement to amend and restate the Prior Agreement is
subject to the condition precedent that the Administrative Agent shall have
received each of the following, each dated the Effective Date unless otherwise
indicated or not applicable:

 

(a)                                  a counterpart of this Agreement signed on
behalf of each party hereto or written evidence satisfactory to the
Administrative Agent (which may include telecopy transmission of a signed
signature page of this Agreement) that such party has signed a counterpart
of this Agreement;

 

(b)                                 an opinion of Steven J. Ford, Esq.,
Vice President, Secretary and General Counsel of the Borrower, substantially in
the form of Exhibit E hereto and covering such additional matters relating
to the transactions contemplated hereby as the Required Banks may reasonably
request;

 

(c)                                  all fees and other amounts due and
payable on or prior to the Effective Date, including, without limitation, the
upfront fees the Borrower and the Administrative Agent have agreed to pay to
each Bank, all unpaid interest and fees accrued under the Prior Agreement
through the Effective Date and any amounts due under Section 2.13 of the
Prior Agreement as a result of the termination of the interest periods
thereunder;

 

(d)                                 all documents the Administrative Agent
may reasonably request relating to the existence of the Borrower, the corporate
authority for and the validity of the Loan Documents and any other matters
relevant hereto, all in form and substance satisfactory to the Administrative
Agent.

 

The Administrative Agent shall promptly notify the Borrower and the
Banks of the Effective Date, and such notice shall be conclusive and binding on
all parties hereto; provided that unless the Administrative Agent notifies the
Borrower and the Banks to the contrary, the Effective Date shall be the date of
this Agreement.

 

SECTION 3.02.  Borrowings.  The
obligation of each Bank to make a Loan on the occasion of any Borrowing, and
any agreement of an Issuing Bank to issue, amend, renew or extend any Letter of
Credit, is subject to the satisfaction of the following conditions:

 

(a)                                  the fact that the Effective Date shall
have occurred on or prior to June 30, 2005;

 

(b)                                 receipt by the
Administrative Agent of a Notice of Borrowing as required by Section 2.02
or Section 2.03, as the case may be, if a Loan is requested or if an
issuance, amendment, renewal or extention of a Letter of Credit is requested,
receipt by the Administrative Agent and the applicable Issuing Bank of a
request therefor under the terms of Section 2.17(b) or if a Swingline
Loan is requested, receipt by the Administrative Agent and Swingline Bank of a
request therefor under the terms of Section 2.05(b);

 

(c)                                  the fact that, immediately after such Borrowing
or the issuance, amendment, renewal or extension of such Letter of Credit, the
aggregate Revolving Exposure will not exceed the aggregate amount of the
Commitments;

 

(d)                                 the fact that, immediately before and
after such Borrowing or the issuance, amendment, renewal or extension of such
Letter of Credit, no Default shall have occurred and be continuing, and

 

29

 

(e)                                  the fact that the representations and
warranties of the Borrower contained in this Agreement shall be true in all
material respects on and as of the date of such Borrowing or the date of
issuance, amendment, renewal or extension of such Letter of Credit.

 

Each
Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit
hereunder shall be deemed to be a representation and warranty by the Borrower
on the date of such Borrowing or the date of such issuance, amendment, renewal
or extension, as applicable, as to the facts specified in clauses (c), (d) and
(e) of this Section.

 

SECTION 3.03.  Effective Date Advances and Adjustments.  On the Effective Date, the aggregate amount
of the revolving commitments under the Prior Agreement is changed hereunder but
not all Banks are participating in the Commitments based on their pro rata
percentages established under the Prior Agreement.  As a result, the committed loans outstanding
under the Prior Agreement which are continued hereunder will not be held pro
rata by the Banks in accordance with their Applicable Percentages determined
hereunder.  To remedy the foregoing, on
the Effective Date and upon fulfillment of the conditions in Section 3.01,
the Banks shall make advances among themselves (which may be through the
Administrative Agent) so that after giving effect thereto the Committed Loans
will be held by the Banks, pro rata in accordance with their respective
Applicable Percentages hereunder.  The
advances made on the Effective Date under this Section by each Bank whose
Applicable Percentage is new or has increased under this Agreement (as compared
to its applicable percentage under the Prior Agreement) shall be deemed to be a
purchase of a corresponding amount of the Loans of the Bank or Banks whose
Applicable Percentage has decreased (as compared to its applicable percentage under
the Prior Agreement).  The advances made
under this Section shall be Base Rate Borrowings made under each Bank’s
Commitment unless another type of Borrowing is selected by the Borrower to be
applicable thereto.

 

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

 

The
Borrower represents and warrants that:

 

SECTION 4.01.  Corporate Existence and Power.  The Borrower is a corporation duly
incorporated, validly existing and in good standing under the laws of the
jurisdiction of its incorporation, and has all corporate powers and all
material governmental licenses, authorizations, consents and approvals required
to carry on its business as now conducted.

 

SECTION 4.02.  Corporate and Governmental Authorization; No Contravention.  The execution, delivery and performance by
the Borrower of this Agreement and the Notes are within the corporate powers of
the Borrower, have been duly authorized by all necessary corporate action,
require no action by or in respect of, or filing with, any governmental body,
agency or official and do not contravene, or constitute a default under, any
provision of applicable law or regulation or of the certificate of
incorporation or by–laws of the Borrower or of any agreement, judgment,
injunction, order, decree or other instrument binding upon the Borrower or any
of its Material Subsidiaries or result in the creation or imposition of any
Lien on any asset of the Borrower or any of its Material Subsidiaries.

 

SECTION 4.03.  Binding Effect.  This
Agreement constitutes a valid and binding agreement of the Borrower and each
Note, when executed and delivered in accordance with this Agreement, will
constitute a valid and binding obligation of the Borrower, in each case
enforceable in accordance with its terms, except as the same may be limited by
bankruptcy, insolvency or similar laws affecting creditors’ rights generally
and by general principles of equity.

 

SECTION 4.04.  Financial Information. 
(a) The consolidated balance sheet of the Borrower and its
Consolidated Subsidiaries as of December 3l, 2004 and the related
consolidated statements of cash

 

30

 

flow, earnings and
shareholders’ equity for the fiscal year then ended, set forth in the Borrower’s
2004 Form 10–K, a copy of which has been delivered to each of the Banks,
fairly present, in conformity with generally accepted accounting principles,
the consolidated financial position of the Borrower and its Consolidated
Subsidiaries as of such date and their consolidated results of operations and
cash flows for such fiscal year.

 

(b)                                 Since December 31, 2004 there has
been no material adverse change in the business, financial position, results of
operations or prospects of the Borrower and its Consolidated Subsidiaries,
considered as a whole.

 

SECTION 4.05.  Litigation.  There is
no action, suit or proceeding pending against, or to the knowledge of the
Borrower threatened against or affecting, the Borrower or any of its
Subsidiaries before any court or arbitrator or any governmental body, agency or
official in which there is a reasonable possibility of an adverse decision
which could materially adversely affect the business, consolidated financial
position or consolidated results of operations of the Borrower and its
Consolidated Subsidiaries, considered as a whole, or which in any manner draws
into question the validity or enforceability of this Agreement or the Notes.

 

SECTION 4.06.  Compliance with ERISA. 
Each member of the ERISA Group has fulfilled its obligations under the
minimum funding standards of ERISA and the Internal Revenue Code with respect
to each Plan and is in compliance in all material respects with the presently
applicable provisions of ERISA and the Internal Revenue Code with respect to
each Plan.  No member of the ERISA Group
has (i) sought a waiver of the minimum funding standard under Section 412
of the Internal Revenue Code in respect of any Plan, (ii) failed to make
any contribution or payment to any Plan or Multiemployer Plan or in respect of
any Benefit Arrangement, or made any amendment to any Plan or Benefit
Arrangement, which has resulted or could result in the imposition of a Lien or
the posting of a bond or other security under ERISA or the Internal Revenue
Code or (iii) incurred any liability under Title IV of ERISA other
than a liability to the PBGC for premiums under Section 4007 of ERISA.

 

SECTION 4.07.  Environmental Matters. 
In the ordinary course of its business, the Borrower conducts an ongoing
review of the effect of Environmental Laws on the business, operations and properties
of the Borrower and its Subsidiaries, in the course of which it identifies and
evaluates associated liabilities and costs (including, without limitation, any
capital or operating expenditures required for clean–up or closure of
properties presently or previously owned, any capital or operating expenditures
required to achieve or maintain compliance with environmental protection
standards imposed by law or as a condition of any license, permit or contract,
any related constraints on operating activities, including any periodic or
permanent shutdown of any facility or reduction in the level of or change in
the nature of operations conducted thereat, any costs or liabilities in
connection with off site disposal of wastes or Hazardous Substances, and any actual
or potential liabilities to third parties, including employees, and any related
costs and expenses).  On the basis of
this review, the Borrower has reasonably concluded that such associated
liabilities and costs, including the costs of compliance with Environmental
Laws, are unlikely to have a material adverse effect on the business, financial
condition, results of operations or prospects of the Borrower and its
Consolidated Subsidiaries, considered as a whole.

 

SECTION 4.08.  Taxes.  The Borrower
and its Subsidiaries have filed all United States Federal income tax returns
and all other material tax returns which are required to be filed by them and
have paid all taxes due pursuant to such returns or pursuant to any assessment
received by the Borrower or any Subsidiary except such taxes and charges as may
be contested in good faith by appropriate proceedings.  The charges, accruals and reserves on the
books of the Borrower and its Subsidiaries in respect of taxes or other
governmental charges are, in the opinion of the Borrower, adequate.

 

31

 

SECTION 4.09.  Subsidiaries.  Each of
the Borrower’s corporate Subsidiaries is a corporation duly incorporated,
validly existing and in good standing under the laws of its jurisdiction of
incorporation, and has all corporate powers and all material governmental
licenses, authorizations, consents and approvals required to carry on its
business as now conducted except where failure to have such powers, licenses,
authorizations, consents or approvals could not reasonably be expected to have
a Material Adverse Effect.  Material
Subsidiaries in existence as of the Effective Date are listed on Schedule 4.09
hereto.

 

SECTION 4.10.  No Regulatory Restrictions on Borrowing.  The Borrower is not an “investment company”
within the meaning of the Investment Company Act of 1940, as amended, a “holding
company” within the meaning of the Public Utility Holding Company Act of 1935,
as amended, or otherwise subject to any regulatory scheme which restricts its
ability to incur debt.

 

SECTION 4.11.  Full Disclosure.  All
information heretofore furnished by the Borrower to the Administrative Agent or
Bank for purposes of or in connection with this Agreement or any transaction
contemplated hereby is, and all such information hereafter furnished by the
Borrower to the Administrative Agent or Bank will be, true and accurate in all
material respects on the date as of which such information is stated or
certified.  The Borrower has disclosed to
the Banks in writing any and all facts which, in the reasonable judgment of the
Borrower, materially and adversely affect or may affect (to the extent the
Borrower can now reasonably foresee), the business, operations or financial
condition of the Borrower and its Consolidated Subsidiaries, taken as a whole,
or the ability of the Borrower to perform its obligations under this Agreement.

 

ARTICLE 5

COVENANTS

 

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

 

SECTION 5.01.  Information.  The
Borrower will furnish to each of the Banks:

 

(a)                                  as soon as available and in any event
within 90 days after the end of each fiscal year of the Borrower, a
consolidated balance sheet of the Borrower and its Consolidated Subsidiaries as
of the end of such fiscal year and the related consolidated statements of cash
flows, earnings and shareholders’ equity for such fiscal year, setting forth in
each case in comparative form the figures for the previous fiscal year, all
reported on in a manner acceptable to the Securities and Exchange Commission by
independent public accountants of nationally recognized standing;

 

(b)                                 as soon as available and in any event
within 45 days after the end of each of the first three quarters of each fiscal
year of the Borrower, a consolidated balance sheet of the Borrower and its
Consolidated Subsidiaries as of the end of such quarter and the related
consolidated statements of cash flows, earnings and shareholders’ equity for
such quarter and for the portion of the Borrower’s fiscal year ended at the end
of such quarter, setting forth in the case of such statements of cash flows,
earnings and shareholders’ equity, in comparative form the figures for the
corresponding quarter and the corresponding portion of the Borrower’s previous
fiscal year, all certified (subject to normal year–end adjustments) as to
fairness of presentation, generally accepted accounting principles and
consistency by the chief financial officer or the chief accounting officer of
the Borrower;

 

(c)                                  simultaneously with the delivery of each
set of financial statements referred to in clauses (a) and (b) above,
a certificate of the chief financial officer or the chief accounting officer of
the

 

32

 

Borrower (i) setting
forth in reasonable detail the calculations required to establish whether the
Borrower was in compliance with the requirements of Sections 5.09 to 5.12,
inclusive, on the date of such financial statements and (ii) stating
whether any Default exists on the date of such certificate and, if any Default
then exists, setting forth the details thereof and the action which the
Borrower is taking or proposes to take with respect thereto;

 

(d)                                 simultaneously with the delivery of each
set of financial statements referred to in clause (a) above, a
statement of the firm of independent public accountants which reported on such
statements (i) whether anything has come to their attention to cause them
to believe that any Default existed on the date of such statements and (ii) confirming
the calculations set forth in the officer’s certificate delivered
simultaneously therewith pursuant to clause (c) above;

 

(e)                                  within five days after any officer of the
Borrower obtains actual knowledge of any Default, if such Default is then continuing,
a certificate of the chief financial officer or the chief accounting officer of
the Borrower setting forth the details thereof and the action which the
Borrower is taking or proposes to take with respect thereto;

 

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

 

(g)                                 promptly upon the filing thereof, copies
of all registration statements (other than the exhibits thereto and any
registration statements on Form S–8 or its equivalent) and reports on
Forms 10–K, 10–Q and 8–K (or their equivalents) which the Borrower shall have
filed with the Securities and Exchange Commission;

 

(h)                                 if and when any member of the ERISA Group
(i) gives or is required to give notice to the PBGC of any “reportable
event’’ (as defined in Section 4043 of ERISA) with respect to any Plan
which might constitute grounds for a termination of such Plan under Title IV of
ERISA, or knows that the plan administrator of any Plan has given or is
required to give notice of any such reportable event, a copy of the notice of
such reportable event given or required to be given to the PBGC; (ii) receives
notice of complete or partial withdrawal liability under Title IV of ERISA
or notice that any Multiemployer Plan is in reorganization, is insolvent or has
been terminated, a copy of such notice; (iii) receives notice from the
PBGC under Title IV of ERISA of an intent to terminate, impose liability
(other than for premiums under Section 4007 of ERISA) in respect of, or
appoint a trustee to administer any Plan, a copy of such notice; (iv) applies
for a waiver of the minimum funding standard under Section 412 of the
Internal Revenue Code, a copy of such application; (v) gives notice of intent
to terminate any Plan under Section 4041(c) of ERISA, a copy of such
notice and other information filed with the PBGC; (vi) gives notice of
withdrawal from any Plan pursuant to Section 4063 of ERISA, a copy of such
notice, or (vii) fails to make any payment or contribution to any Plan or
Multiemployer Plan or in respect of any Benefit Arrangement or makes any
amendment to any Plan or Benefit Arrangement which has resulted or could result
in the imposition of a Lien or the posting of a bond or other security, a
certificate of the chief financial officer or the chief accounting officer of
the Borrower setting forth details as to such occurrence and action, if any,
which the Borrower or applicable member of the ERISA Group is required or
proposes to take; and

 

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

 

SECTION 5.02.  Payment of Obligations. 
The Borrower will pay and discharge, and will cause each Subsidiary to
pay and discharge, at or before maturity, all their respective material
obligations and

 

33

 

liabilities
(including, without limitation, tax liabilities and claims of materialmen,
warehousemen and the like which if unpaid might by law give rise to a Lien),
except where the same may be contested in good faith by appropriate
proceedings, and will maintain, and will cause each Subsidiary to maintain, in
accordance with generally accepted accounting principles, appropriate reserves
for the accrual of any of the same.

 

SECTION 5.03.  Maintenance of Property; Insurance.  (a) The Borrower will keep, and will
cause each Subsidiary to keep, all property useful and necessary in its
business in good working order and condition, ordinary wear and tear excepted; provided that nothing in this Section shall prevent the
Borrower or any Subsidiary from disposing of any of its assets in the ordinary
course of business.

 

(b)                                 The Borrower will, and will cause each of
its Subsidiaries to, maintain (either in the name of the Borrower or in such
Subsidiary’s own name) with financially sound and responsible insurance
companies, insurance on all their respective properties in at least such
amounts, against at least such risks and with such risk retention as are
usually maintained, insured against or retained, as the case may be, in the
same general area by companies of established repute engaged in the same or a similar
business; and will furnish to the Banks, upon request from the Administrative
Agent, information presented in reasonable detail as to the insurance so
carried.

 

SECTION 5.04.  Conduct of Business and Maintenance of Existence.  The Borrower will preserve, renew and keep in
full force and effect, and will cause each Subsidiary to preserve, renew and
keep in full force and effect their respective corporate existence and their
respective rights, privileges and franchises necessary or desirable in the normal
conduct of business; provided that
nothing in this Section shall prohibit (i) the merger of a Subsidiary
into the Borrower or the merger or consolidation of a Subsidiary with or into
another Person if the corporation surviving such consolidation or merger is a
Subsidiary and if, in each case, after giving effect thereto, no Default shall
have occurred and be continuing or (ii) the termination of the corporate
existence of any Subsidiary if the Borrower in good faith determines that such
termination is in the best interest of the Borrower.

 

SECTION 5.05.  Compliance with Laws. 
The Borrower will comply, and cause each Subsidiary to comply, in all
material respects with all applicable laws, ordinances, rules, regulations, and
requirements of governmental authorities (including, without limitation,
Environmental Laws and ERISA and the rules and regulations thereunder)
except (x) where the necessity of compliance therewith is contested in
good faith by, appropriate proceedings or (y) where the failure to comply
could not reasonably be expected to have a Material Adverse Effect.

 

SECTION 5.06.  Inspection of Property, Books and Records.  The Borrower will keep, and will cause each
Subsidiary to keep, proper books of record and account in which full, true and
correct entries shall be made of all dealings and transactions in relation to
its business and activities; and will permit, and will cause each Subsidiary to
permit, representatives of any Bank at such Bank’s expense to visit and inspect
any of their respective properties, to examine and make abstracts from any of
their respective books and records and to discuss their respective affairs,
finances and accounts with their respective officers, employees and independent
public accountants, all at such reasonable times and as often as may reasonably
be desired.

 

SECTION 5.07.  Mergers and Sales of Assets. 
The Borrower will not (a) consolidate or merge with or into any
other Person or (b) sell, lease or otherwise transfer, directly or
indirectly, in any one transaction or in any series of related transactions, in
each case outside the ordinary course of business, more than 15% of
Consolidated Assets to any other Person or Persons; provided
that (i) the Borrower may merge with another Person if (x) the
Borrower is the corporation surviving such merger and (y) after giving
effect to such merger, no Default shall have occurred and be continuing; (ii) the
Borrower may sell

 

34

 

the capital stock
or assets of Carlisle Engineering Products, Inc.; and (iii) the
Borrower may sell accounts receivable and other rights to payment in Permitted
Securitization Transactions and the assets sold pursuant thereto shall not be
included as asset disposed of in the determining compliance with the 15%
limitation set forth above.

 

SECTION 5.08.  Use of Proceeds.  The
proceeds of the Loans made under this Agreement will be used by the Borrower
for general corporate purposes including, without limitation, to finance its
working capital needs, to refinance indebtedness (including, without
limitation, the refinancing of obligations outstanding in connection with
industrial revenue bond financings) and to finance acquisitions.  None of such proceeds will be used, directly
or indirectly, for the purpose, whether immediate, incidental or ultimate, of
buying or carrying any “margin stock” within the meaning of Regulation U.

 

SECTION 5.09.  Negative Pledge. 
Neither the Borrower nor any Subsidiary will create, assume or suffer to
exist any Lien on any asset (including Subsidiary stock) now owned or hereafter
acquired by it, except:

 

(a)                                  Liens existing on the date of this
Agreement securing Debt outstanding on the date of this Agreement in an
aggregate principal or face amount not exceeding $40,000,000;

 

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

 

(c)                                  any Lien on any asset securing Debt
incurred or assumed for the purpose of financing all or any part of the cost of
acquiring such asset, provided that
such Lien attaches to such asset concurrently with or within six months after
the acquisition thereof;

 

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

 

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

 

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

 

(g)                                 Liens arising in the ordinary course of
its business which (i) do not secure Debt or Derivatives Obligations, (ii) do
not secure any obligation in an amount exceeding 10% of Consolidated Tangible
Net Worth and (iii) do not in the aggregate materially detract from the
value of its assets or materially impair the use thereof in the operation of
its business;

 

(h)                                 Liens on accounts receivable, other
rights to payment, the proceeds thereof and the accounts in which such proceeds
are deposited arising in connection with Permitted Securitization Transactions;
and

 

(i)                                     Liens not otherwise permitted by the
foregoing clauses of this Section securing Debt or Derivatives Obligations
in an aggregate principal or face amount at any date not to exceed 10% of
Consolidated Tangible Net Worth.

 

SECTION 5.10.  Subsidiary Debt Limitation. 
Total Debt of Consolidated Subsidiaries (excluding (i) Debt of a
Subsidiary to the Borrower or to a Wholly–Owned Subsidiary and (ii) Debt
arising in

 

35

 

connection with
Permitted Securitization Transactions) will at no time exceed 15% of
Consolidated Tangible Net Worth.

 

SECTION 5.11.  Leverage Ratio.  The
Leverage Ratio will at no time exceed 3.25 to 1.00.

 

The “Leverage
Ratio” at any date is the ratio of Consolidated Finance Liabilities
at such date to Consolidated EBITDA for the period of four consecutive fiscal
quarters most recently ended on or prior to such date.

 

For this purpose:

 

“Consolidated Finance
Liabilities” means, at any date, the sum of (i) Consolidated
Debt (but excluding therefrom, to the extent included, up to but not exceeding
$100,000,000 of the amounts outstanding (i.e., advanced as the purchase price
and not repaid from collections) under all Permitted Securitization
Transactions) plus (ii) to the extent not otherwise reflected in
Consolidated Debt, the aggregate amount in excess of $100,000,000 outstanding
(i.e., advanced as the purchase price and not repaid from collections) under
all Permitted Securitization Transactions, all determined on a consolidated
basis as of such date.

 

“Consolidated EBITDA”
means, for any period, (i) Consolidated Net Income for such period plus (ii) without
duplication and to the extent deducted in determining such Consolidated Net
Income, the sum of: (A) Consolidated Interest Expense, income tax expense
and depreciation and amortization expense; plus (B) losses arising in
connection with the sales of accounts receivable and other rights to payment in
Permitted Securitization Transactions. 
In the event of any acquisition or disposition during such period of
assets having a book value (on the books of the Borrower) exceeding
$10,000,000, Consolidated EBITDA shall be determined on a pro forma basis as if
such transaction had occurred on the first day of such period.

 

“Consolidated Interest Expense” means, for any period all interest on Debt of the Borrower and its Consolidated
Subsidiaries paid or payable in cash during such period; including or in
addition: (i) the interest portion of payment under capital lease obligations,
(ii) all fees with respect to such Debt during such period, and (iii) that
portion of the losses arising in connection with the sales of accounts
receivable and other rights to payment in Permitted Securitization Transactions that can be demonstrated in a manner acceptable to
the Administrtiave Agent to be representative of the interest expense that
would have been paid if such transaction were accounted for as a financing, in
each case determined in accordance with generally accepted accounting principles.

 

SECTION 5.12.  Minimum Consolidated Net Worth.  Consolidated Net Worth will at no time be
less than an amount equal to the sum of (i) $560,000,000 plus (ii) an
amount equal to 50% of Consolidated Net Income for each fiscal quarter of the
Borrower ending after December 31, 2004 but on or prior to the date of
determination, in each case, for which Consolidated Net Income is positive (but
with no deduction on account of negative Consolidated Net Income for any fiscal
quarter of the Borrower).

 

SECTION 5.13.  Transactions with Affiliates.  The Borrower will not, and will not permit
any Subsidiary to, directly or indirectly, pay any funds to or for the account
of, make any investment (whether by acquisition of stock or indebtedness, by
loan, advance, transfer of property, guarantee or other agreement to pay,
purchase or service, directly or indirectly, any Debt, or otherwise) in, lease,
sell, transfer or otherwise dispose of any assets, tangible or intangible, to,
or participate in, or effect, any

 

36

 

transaction with,
any Affiliate except on an arms–length basis on terms at least as favorable to
the Borrower or such Subsidiary than could have been obtained from a third
party who was not an Affiliate; provided that
the foregoing provisions of this Section shall not prohibit any such
Person from declaring or paying any lawful dividend or other payment ratably in
respect of all of its capital stock of the relevant class so long as, after
giving effect thereto, no Default shall have occurred and be continuing.

 

ARTICLE 6

DEFAULTS

 

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

 

(a)                                  the Borrower shall fail to pay (i) any
principal of any Loan or any reimbursement obligation in respect of any LC
Disbursement when and as the same shall become due and payable, or (ii) within
three Domestic Business Days after the due date thereof, any interest, any fees
or any other amount payable hereunder;

 

(b)                                 the Borrower shall fail to observe or
perform any covenant contained in Article 5, other than those contained in
Sections 5.01 through 5.06, for 5 days after any officer of the Borrower
obtains actual knowledge thereof;

 

(c)                                  the Borrower shall fail to observe or
perform any covenant or agreement contained in this Agreement (other than those
covered by clause (a) or (b) above) for 30 days after notice
thereof has been given to the Borrower by the Administrative Agent at the
request of any Bank;

 

(d)                                 any representation, warranty,
certification or statement made by the Borrower in this Agreement or in any
certificate, financial statement or other document delivered pursuant to this
Agreement shall prove to have been incorrect in any material respect when made
(or deemed made);

 

(e)                                  the Borrower or any Subsidiary shall fail
to make any payment in respect of any Material Financial Obligations when due
or within any applicable grace period;

 

(f)                                    any event or condition shall occur which
results in the acceleration of the maturity of any Material Debt or enables
(or, with the giving of notice or lapse of time or both, would enable) the
holder of such Debt or any Person acting on such holder’s behalf to accelerate
the maturity thereof,

 

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

 

(h)                                 an involuntary case or other proceeding
shall be commenced against the Borrower or any Material Subsidiary seeking
liquidation, reorganization or other relief with respect to it or its debts
under any bankruptcy, insolvency or other similar law now or hereafter in
effect or seeking the appointment of a trustee, receiver, liquidator, custodian
or other similar official of it or any substantial part of its property, and
such involuntary case or other proceeding shall remain undismissed and unstayed

 

37

 

for a period of 60
days; or an order for relief shall be entered against the Borrower or any
Subsidiary under the federal bankruptcy laws as now or hereafter in effect;

 

(i)                                     any member of the ERISA Group shall fail
to pay when due an amount or amounts aggregating in excess of $10,000,000 which
it shall have become liable to pay under Title IV of ERISA; or notice of
intent to terminate a Material Plan shall be filed under Title IV of ERISA
by any member of the ERISA Group, any plan administrator or any combination of
the foregoing; or the PBGC shall institute proceedings under Title IV of
ERISA to terminate, to impose liability (other than for premiums under Section 4007
of ERISA) in respect of, or to cause a trustee to be appointed to administer
any Material Plan; or a condition shall exist by reason of which the PBGC would
be entitled to obtain a decree adjudicating that any Material Plan must be
terminated; or there shall occur a complete or partial withdrawal from, or a
default, within the meaning of Section 4219(c)(5) of ERISA, with
respect to, one or more Multiemployer Plans which could cause one or more
members of the ERISA Group to incur a current payment obligation in excess of
$10,000,000;

 

(j)                                     judgments or orders for the payment of
money in excess of $10,000,000 shall be rendered against the Borrower or any
Subsidiary and such judgments or orders shall continue unsatisfied and unstayed
for a period of 30 days; or

 

(k)                                  any person or group of persons (within
the meaning of Section 13 or 14 of the Securities Exchange Act of 1934, as
amended) shall have acquired beneficial ownership (within the meaning of Rule 13d–3
promulgated by the Securities and Exchange Commission under said Act) of 25% or
more of the outstanding shares of common stock of the Borrower; or, during any
period of 12 consecutive calendar months, individuals who were directors of the
Borrower on the first day of such period shall cease to constitute a majority
of the board of directors of the Borrower;

 

then,
and in every such event, the Administrative Agent shall

 

(i)                                     if requested by Banks having more than
50% in aggregate amount of the Commitments, by notice to the Borrower terminate
the Commitments and the commitment of the Swingline Bank to make Swingline
Loans and they shall thereupon terminate, and

 

(ii)                                  if requested by Banks holding more than
50% of the aggregate amount of the Revolving Exposure, by notice to the
Borrower declare the Loans (together with accrued interest thereon) to be, and
the Loans, shall thereupon become, immediately due and payable without
presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrower; provided that
in the case of any of the Events of Default specified in clause 6.01(g) or
6.01(h) above with respect to the Borrower, without any notice to the
Borrower or any other act by the Administrative Agent or the Banks, the
Commitments, the commitment of the Swingline Bank to make Swingline Loans and
any agreement of any Issuing Bank to issue or modify Letters of Credit, shall
thereupon terminate and the Loans (together with accrued interest thereon)
shall become immediately due and payable without presentment, demand, protest
or other notice of any kind, all of which are hereby waived by the Borrower.

 

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

 

38

 

ARTICLE 7

THE AGENT

 

SECTION 7.01.  Appointment and Authorization.  Each Bank and each Issuing Bank irrevocably
appoints and authorizes JPMorgan Chase Bank, N.A. to take such action as agent
(and confirms and continues such appointment under the Prior Agreement) on its
behalf and to exercise such powers under this Agreement and the Notes as are
delegated to the Administrative Agent by the terms hereof or thereof, together
with all such powers as are reasonably incidental thereto.

 

SECTION 7.02.  Administrative Agent and Affiliates.  JPMorgan Chase Bank, N.A. shall have the same
rights and powers under this Agreement as any other Bank and may exercise or
refrain from exercising the same as though it were not the Administrative
Agent, and JPMorgan Chase Bank, N.A. and its affiliates may accept deposits
from, lend money to, and generally engage in any kind of business with the
Borrower or any Subsidiary or affiliate of the Borrower as if it were not the
Administrative Agent.

 

SECTION 7.03.  Action by Administrative Agent.  The obligations of the Administrative Agent
hereunder are only those expressly set forth herein.  Without limiting the generality of the
foregoing, the Administrative Agent shall not be required to take any action
with respect to any Default, except as expressly provided in Article 6.

 

SECTION 7.04.  Consultation with Experts. 
The Administrative Agent may consult with legal counsel (who may be
counsel for the Borrower), independent public accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be
taken by it in good faith in accordance with the advice of such counsel,
accountants or experts.

 

SECTION 7.05.  Liability of Administrative Agent.  Neither the Administrative Agent nor any of
its affiliates nor any of their respective directors, officers, agents or
employees shall be liable for any action taken or not taken by it in connection
herewith (i) with the consent or at the request of the Required Banks (or
such different number of Banks as any provision hereof expressly requires for
such consent or request) or (ii) in the absence of its own gross
negligence or willful misconduct. 
Neither the Administrative Agent nor any of its affiliates nor any of
their respective directors, officers, agents or employees shall be responsible
for or have any duty to ascertain, inquire into or verify (i) any
statement, warranty or representation made in connection with this Agreement or
any borrowing hereunder; (ii) the performance or observance of any of the
covenants or agreements of the Borrower; (iii) the satisfaction of any
condition specified in Article 3, except receipt of items required to be
delivered to the Administrative Agent; or (iv) the validity, effectiveness
or genuineness of this Agreement, the Notes or any other instrument or writing
furnished in connection herewith.  The
Administrative Agent shall not incur any liability by acting in reliance upon
any notice, consent, certificate, statement, or other writing (which may be a
bank wire, telex, facsimile transmission or similar writing) believed by it to
be genuine or to be signed by the proper party or parties.  Without limiting the generality of the
foregoing, the use of the term “agent” in this Agreement with reference to the
Administrative Agent is not intended to connote any fiduciary or other implied
(or express) obligations arising under agency doctrine of any applicable
law.  Instead, such term is used merely
as a matter of market custom and is intended to create or reflect only an
administrative relationship between independent contracting parties.

 

SECTION 7.06.  Indemnification.  Each
Bank, ratably in accordance with its Commitment, indemnifies the Administrative
Agent, the Swingline Bank and each Issuing Bank (to the extent not reimbursed
by the Borrower) against any cost, expense (including counsel fees and
disbursements), claim, demand, action, loss or liability (except such as result
from such indemnitee’s gross negligence or willful misconduct) that such indemnitees
may suffer or incur in connection with: (i) the execution or delivery of
the Prior Agreement, this Agreement or any agreement or instrument contemplated
hereby or thereby, the

 

39

 

performance by the
parties hereto of their respective obligations hereunder or thereunder or the
consummation of the transactions contemplated hereby or thereby, (ii) any
Loan or Letter of Credit or the use of the proceeds therefrom (including any
refusal by the Issuing Bank to honor a demand for payment under a Letter of
Credit if the documents presented in connection with such demand do not
strictly comply with the terms of such Letter of Credit), or (iii) any
actual or prospective claim, litigation, investigation or proceeding relating
to any of the foregoing, whether based on contract, tort or any other theory
and regardless of whether such indemnitee is a party thereto.

 

SECTION 7.07.  Credit Decision.  Each
Bank and each Issuing Bank acknowledges that it has, independently and without
reliance upon the Administrative Agent or any other Bank, and based on such
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement.  Each Bank and each Issuing Bank also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Bank, 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 any action under this Agreement.

 

SECTION 7.08.  Successor Administrative Agent.  The Administrative Agent may resign at any
time by giving notice thereof to the Banks and the Borrower.  Upon any such resignation, the Required Banks
shall have the right to appoint a successor Administrative Agent.  If no successor Administrative Agent shall
have been so appointed by the Required Banks, and shall have accepted such
appointment, within 30 days after the retiring Administrative Agent gives
notice of resignation, then the retiring Administrative Agent may, on behalf of
the Banks, appoint a successor Administrative Agent, which shall be a
commercial bank organized or licensed under the laws of the United States of
America or of any State thereof and having a combined capital and surplus of at
least $50,000,000.  Upon the acceptance
of its appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights and duties of the retiring
Administrative Agent, and the retiring Administrative Agent shall be discharged
from its duties and obligations hereunder. 
After any retiring Administrative Agent’s resignation hereunder as
Administrative Agent, the provisions of this Article shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent.

 

SECTION 7.09.  Agent’s Fees.  The
Borrower shall pay to the Administrative Agent for its own account fees in the
amounts and at the times previously agreed upon between the Borrower and the
Administrative Agent.

 

SECTION 7.10.  No Additional Duties of other Agents. 
Bank of America, N.A., SunTrust Bank and The Bank of
Tokyo–Mitsubshi, Ltd., NY Branch have been designated as “co–documentation
agents” and Wachovia Bank, N. A. has been designated as “syndication agent”
hereunder in recognition of the level of each of their respective
Commitments.  None of the parties listed
in the foregoing sentence is an agent for the Banks and no such Bank shall have
any obligation hereunder other than those existing in its capacity as a
Bank.  Without limiting the foregoing, no
such Bank shall have or be deemed to have any fiduciary relationship with or
duty to any other Bank.

 

ARTICLE 8

CHANGE IN CIRCUMSTANCES

 

SECTION 8.01.  Basis for Determining Interest Rate Inadequate or Unfair.  If on or prior to the first day of any
Interest Period for any CD Loan, Euro–Dollar Loan or Money Market LIBOR Loan:

 

40

 

(a)                                  the Administrative Agent is advised by
the Reference Bank that deposits in dollars (in the applicable amounts) are not
being offered to the Reference Bank in the relevant market for such Interest
Period, or

 

(b)                                 in the case of a Committed Borrowing,
Banks having 50% or more of the aggregate amount of the Commitments advise the
Administrative Agent that the Adjusted CD Rate or the Adjusted London Interbank
Offered Rate, as the case may be, as determined by the Administrative Agent will
not adequately and fairly reflect the cost to such Banks of funding their CD
Loans or Euro–Dollar Loans, as the case may be, for such Interest Period, the
Administrative Agent shall forthwith give notice thereof to the Borrower and
the Banks, whereupon until the Administrative Agent notifies the Borrower that
the circumstances giving rise to such suspension no longer exist, (i) the
obligations of the Banks to make CD Loans or Euro–Dollar Loans, as the case may
be, or to continue or convert outstanding Loans as or into CD Loans or
Euro–Dollar Loans, as the case may be, shall be suspended and (ii) each
outstanding CD Loan or Euro–Dollar Loan, as the case may be, shall be converted
into a Base Rate Loan on the last day of the then current Interest Period applicable
thereto.  Unless the Borrower notifies
the Administrative Agent at least two Domestic Business Days before the date of
any Fixed Rate Borrowing for which a Notice of Borrowing has previously been
given that it elects not to, borrow on such date, (i) if such Fixed Rate
Borrowing is a Committed Borrowing, such Borrowing shall instead be made as a
Base Rate Borrowing and (ii) if such Fixed Rate Borrowing is a Money
Market LIBOR Borrowing, the Money Market LIBOR Loans comprising such Borrowing
shall bear interest for each day from and including the first day to but
excluding the last day of the Interest Period applicable thereto at the Base
Rate plus the Base Margin for such day.

 

SECTION 8.02.  Illegality.  If, on or
after the date of this Agreement, the adoption of any applicable law, rule or
regulation, or any change in any applicable law, rule or regulation, or
any change in the interpretation or administration thereof by any governmental
authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by any Bank (or its Euro–Dollar Lending
Office) with any request or directive (whether or not having the force of law)
of any such authority, central bank or comparable agency shall make it unlawful
or impossible for any Bank (or its Euro–Dollar Lending Office) to make,
maintain or fund its Euro–Dollar Loans and such Bank shall so notify the
Administrative Agent, the Administrative Agent shall forthwith give notice
thereof to the other Banks and the Borrower, whereupon until such Bank notifies
the Borrower and the Administrative Agent that the circumstances giving rise to
such suspension no longer exist, the obligation of such Bank to make
Euro–Dollar Loans shall be suspended. 
Before giving any notice to the Administrative Agent pursuant to this
Section, such Bank shall designate a different Euro–Dollar Lending Office if
such designation will avoid the need for giving such notice and will not, in
the judgment of such Bank, be otherwise disadvantageous to such Bank.  If such notice is given, each Euro–Dollar
Loan of such Bank then outstanding shall be converted to a Base Rate Loan
either (a) on the last day of the then current Interest Period applicable
to such Euro–Dollar Loan if such Bank may lawfully continue to maintain and
fund such Loan as a Euro–Dollar Loan to such day or (b) immediately if
such Bank shall determine that it may not lawfully continue to maintain and
fund such Loan as a Euro–Dollar Loan to such day.  Interest and principal on any such Base Rate
Loan shall be payable on the same dates as, and on a pro rata basis with, the
interest and principal payable on the related Euro–Dollar Loans of the other
Banks.

 

SECTION 8.03.  Increased Cost and Reduced Return.  (a) If on or after (x) the date
hereof, in the case of any Committed Loan, any obligation to make Committed
Loans or any Letter of Credit or (y) the date of the related Money Market
Quote, in the case of any Money Market Loan, the adoption of any applicable
law, rule or regulation, or any change in any applicable law, rule or
regulation, or any change in the interpretation or administration thereof by
any governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Bank (or its
Applicable Lending Office) or any Issuing Bank with any request or directive
(whether or not having the

 

41

 

force of law) of
any such authority, central bank or comparable agency shall impose, modify or
deem applicable any reserve (including, without limitation, any such
requirement imposed by the Board of Governors of the Federal Reserve System,
but excluding (i) with respect to any CD Loan, any such requirement
included in an applicable Domestic Reserve Percentage and (ii) with
respect to any Euro–Dollar Loan any such requirement included in an applicable
Euro–Dollar Reserve Percentage), special deposit, insurance assessment
(excluding, with respect to any CD Loan, any such requirement reflected in an
applicable Assessment Rate) or similar requirement against assets of, deposits
with or for the account of, or credit extended by, any Bank (or its Applicable
Lending Office) or any Issuing Bank or shall impose on any Bank (or its
Applicable Lending Office) or any Issuing Bank or on the United States market
for certificates of deposit or the London interbank market any other condition
affecting its Fixed Rate Loans, its Note, any Letter of Credit or its
obligation to make Fixed Rate Loans or issue Letters of Credit and the result
of any of the foregoing is to increase the cost to such Bank (or its Applicable
Lending Office) or Issuing Bank, as applicable, of making or maintaining any
Fixed Rate Loan or of issuing or maintaining any Letter of Credit, or to reduce
the amount of any sum received or receivable by such Bank (or its Applicable
Lending Office) or Issuing Bank under this Agreement or under its Note with
respect thereto, by an amount deemed by such Bank or Issuing Bank to be
material, then, within 15 days after demand by such Bank or Issuing Bank (with
a copy to the Administrative Agent), the Borrower shall pay to such Bank or
Issuing Bank, as applicable, such additional amount or amounts as will
compensate such Bank or Issuing Bank, as applicable, for such increased cost or
reduction.

 

(b)                                 If any Bank or any Issuing Bank
reasonably shall have determined that, after the date hereof, the adoption of
any applicable law, rule or regulation regarding capital adequacy, or any
change in any such law, rule or regulation, or any change in the
interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or any request or directive regarding capital adequacy (whether or not
having the force of law) of any such authority, central bank or comparable
agency has or would have the effect of reducing the rate of return on capital
of such Bank (or its Parent) or Issuing Bank (or its Parent) as a consequence of
such Person’s obligations hereunder to a level below that which it (or its
Parent) could have achieved but for such adoption, change, request or directive
(taking into consideration its policies with respect to capital adequacy) by an
amount deemed by such Bank or Issuing Bank, as applicable, to be material, then
from time to time, within 15 days after demand by such Bank or Issuing Bank, as
applicable (with a copy to the Administrative Agent), the Borrower shall pay to
such Bank or Issuing Bank, as applicable, such additional amount or amounts as
will compensate such Bank (or its Parent) for such reduction.

 

(c)                                  Each Bank and each Issuing Bank will
promptly notify the Borrower and the Administrative Agent of any event of which
it has knowledge, occurring after the date hereof, which will entitle it to
compensation pursuant to this Section and will designate a different
Lending Office if such designation will avoid the need for, or reduce the
amount of, such compensation and will not, in the judgment of such Bank or
Issuing Bank, as applicable, be otherwise disadvantageous to such Bank or
Issuing Bank, as applicable.  A
certificate of any Bank or any Issuing Bank claiming compensation under this Section and
setting forth the additional amount or amounts to be paid to it hereunder,
along with such supplemental information as the Borrower may reasonably
request, shall be conclusive in the absence of manifest error.  In determining such amount, such Bank or
Issuing Bank, as applicable, may use any reasonable averaging and attribution
methods.

 

SECTION 8.04.  Taxes.  (a) For
the purposes of this Section 8.04, the following terms have the following
meanings:

 

“Taxes” means any and all present or future taxes, duties,
levies, imposts, deductions, charges or withholdings with respect to any
payment by the Borrower pursuant to this Agreement or under any Note,

 

42

 

and all
liabilities with respect thereto, excluding (i) in
the case of each Bank, each Issuing Bank and the Administrative Agent, taxes
imposed on its income, and franchise or similar taxes imposed on it, by a
jurisdiction under the laws of which such Bank, Issuing Bank or the
Administrative Agent (as the case may be) is organized or in which its
principal executive office is located or, in the case of each Bank, in which
its Applicable Lending Office is located and (ii) in the case of each Bank
or each Issuing Bank, any United States withholding tax imposed on such
payments but only to the extent that such Bank or Issuing Bank is subject to
United States withholding tax at the time such Bank first becomes a party to
this Agreement.

 

“Other Taxes” means any present or future stamp or
documentary taxes and any other excise or property taxes, or similar charges or
levies, which arise from any payment made pursuant to this Agreement or under
any Note or from the execution or delivery of, or otherwise with respect to,
this Agreement or any Note.

 

(b)                                 Any and all payments by the Borrower to
or for the account of any Bank, any Issuing Bank or the Administrative Agent
hereunder or under any Note shall be made without deduction for any Taxes or
Other Taxes; provided that, if the Borrower
shall be required by law to deduct any Taxes or Other Taxes from any such
payments, (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to
additional sums payable under this Section) such Bank or the Administrative
Agent (as the case may be) receives an amount equal to the sum it would have
received had no such deductions been made, (ii) the Borrower shall make
such deductions, (iii) the Borrower shall pay the full amount deducted to
the relevant taxation authority or other authority in accordance with
applicable law and (iv) the Borrower shall furnish to the Administrative
Agent, at its address referred to in Section 9.01, the original or a
certified copy of a receipt evidencing payment thereof.

 

(c)                                  The Borrower agrees to indemnify each
Bank, each Issuing Bank and the Administrative Agent for the full amount of
Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes
imposed or asserted by any jurisdiction on amounts payable under this Section)
paid by such Bank or the Administrative Agent (as the case may be) and any
liability (including penalties, interest and expenses) arising therefrom or
with respect thereto.  This
indemnification shall be paid within 15 days after such Bank, Issuing Bank or
the Administrative Agent (as the case may be) makes demand therefor.

 

(d)                                 Each Foreign Bank, on or prior to the
date of its execution and delivery of this Agreement in the case of each Bank
listed on the signature pages hereof and on or prior to the date on which
it becomes a Bank in the case of each other Bank, and from time to time
thereafter if requested in writing by the Borrower (but only so long as such
Bank remains lawfully able to do so), shall provide the Borrower and the
Administrative Agent with applicable Internal Revenue Service form, certifying
that such Bank is entitled to benefits under an income tax treaty to which the
United States is a party which exempts the Bank from United States withholding
tax or reduces the rate of withholding tax on payments of interest for the
account of such Bank or certifying that the income receivable pursuant to this
Agreement is effectively connected with the conduct of a trade or business in
the United States.

 

(e)                                  For any period with respect to which a
Bank has failed to provide the Borrower or the Administrative Agent with the
appropriate form pursuant to Section 8.04(d) (unless such failure is
due to a change in treaty, law or regulation occurring subsequent to the date
on which such form originally was required to be provided), such Bank shall not
be entitled to indemnification under Section 8.04(b) or (c) with
respect to Taxes imposed by the United States; provided
that if a Bank which is otherwise exempt from or subject to a reduced rate of
withholding tax, becomes subject to Taxes

 

43

 

because of its
failure to deliver a form required hereunder, the Borrower shall take such
steps as such Bank shall reasonably request to assist such Bank to recover such
Taxes.

 

(f)                                    If the Borrower is required to pay
additional amounts to or for the account of any Bank pursuant to this Section,
then such Bank will change the jurisdiction of its Applicable Lending Office
if, in the judgment of such Bank, such change (i) will eliminate or reduce
any such additional payment which may thereafter accrue and (ii) is not
otherwise disadvantageous to such Bank.

 

SECTION 8.05.  Base Rate Loans Substituted for Affected Fixed Rate Loans.  If (i) the obligation of any Bank to
make, or to continue or convert outstanding Loans as or to, Euro–Dollar Loans
has been suspended pursuant to Section 8.02 or (ii) any Bank has
demanded compensation under Section 8.03 or 8.04 with respect to its CD
Loans or Euro–Dollar Loans and the Borrower shall, by at least five Euro–Dollar
Business Days’ prior notice to such Bank through the Administrative Agent, have
elected that the provisions of this Section shall apply to such Bank,
then, unless and until such Bank notifies the Borrower that the circumstances
giving rise to such suspension or demand for compensation no longer exist, all
Loans which would otherwise be made by such Bank as (or continued as or
converted to) CD Loans or Euro–Dollar Loans, as the case may be, shall instead
be Base Rate Loans (on which interest and principal shall be payable contemporaneously
with the related Fixed Rate Loans of the other Banks).  If such Bank notifies the Borrower that the
circumstances giving rise to such suspension or demand for compensation no
longer exist, the principal amount of each such Base Rate Loan shall be converted
into a Euro–Dollar Loan or CD Loan, as the case may be, on the first day of the
next succeeding Interest Period applicable to the related Euro–Dollar Loans or
CD Loans of the other Banks.

 

SECTION 8.06.  Substitution of Bank. 
If any Bank has demanded compensation pursuant to Section 8.03 or
8.04, the Borrower shall have the right to designate an assignee which is not
an affiliate of the Borrower to purchase for cash, pursuant to an Assignment
and Assumption Agreement substantially in the form of Exhibit F hereto,
the outstanding Loans and Commitment of such Bank and to assume all of such
Bank’s other rights and obligations hereunder without recourse to or warranty
by such Bank, for a purchase price equal to the principal amount of all of such
Bank’s outstanding Loans including participations in the LC Disbursements and
Swingline Loans, plus any accrued but unpaid interest thereon and the accrued
but unpaid facility fees in respect of that Bank’s Commitment hereunder plus
such amount, if any, as would be payable pursuant to Section 2.14 if the
outstanding Loans of such Bank were prepaid in their entirety on the date of
consummation of such assignment.

 

ARTICLE 9

MISCELLANEOUS

 

SECTION 9.01.  Notices.  All notices
and other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:

 

(a)                                  if to the Borrower, to it at 13925
Ballantyne Corporate Place, Suite 400, Charlotte, NC 28277, Attention of
Chief Financial Officer, Telecopy No. (704) 501-1190;

 

(b)                                 if to the Administrative Agent and/or
Swingline Bank, 2200 Ross Avenue, 3rd Floor, Dallas, Texas  75201, Attention of Michael Lister, Telecopy No. (214)
965-2044 with a copy to JPMorgan Chase Bank, Loan Agency Services, 1111
Fannin, 10th Floor, Houston, Texas 77002; Attention: Cody Cannon,
Telephone (713) 750-2336; Telecopy No. (713) 750-2228;

 

(c)                                  if to a Bank or Issuing Bank, to it at
its address (or telecopy number) set forth in the Administrative Questionnaire
delivered to Administrative Agent by such Bank in connection with this

 

44

 

Agreement or the
Prior Agreement or in connection with the Assignment and Assumption pursuant to
which such Bank became a party hereto.

 

Notices and other communications to the Banks 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 2 unless otherwise agreed by the
Administrative Agent and the applicable Bank. 
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.  Any party hereto may change its address or
telecopy number for notices and other communications hereunder by notice to the
other parties hereto.  All notices and
other communications given to any party hereto in accordance with the
provisions of this Agreement shall be deemed to have been given on the date of
receipt.

 

SECTION 9.02.  No Waivers.  No
failure or delay by the Administrative Agent, any Issuing Bank or any Bank in
exercising any right, power or privilege hereunder or under any Note shall
operate as a waiver thereof nor shall any single or partial exercise thereof
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege.  The rights
and remedies herein provided and provided in the Notes shall be cumulative and
not exclusive of any rights or remedies provided by law or otherwise.

 

SECTION 9.03.  Expenses; Indemnification. 
(a) The Borrower shall pay: (i) all out–of–pocket expenses of
the Administrative Agent, including fees and disbursements of special counsel
for the Administrative Agent, in connection with, the preparation and
administration of this Agreement, any waiver or consent hereunder or any
amendment hereof or any Default or alleged Default hereunder; (ii) all
out–of–pocket expenses of each Issuing Bank, including fees and disbursements
of special counsel for each Issuing Bank, in connection with, the preparation
and administration of any Letter of Credit (including any issuance,
modification or payment of any demand under any Letter of Credit), any waiver
or consent hereunder or any Default or alleged Default hereunder; and (iii) if
an Event of Default occurs, all out–of–pocket expenses incurred by the
Administrative Agent, each Issuing Bank and each Bank, including (without
duplication) the fees and disbursements of counsel, in connection with such
Event of Default and collection, bankruptcy, insolvency and other enforcement
proceedings resulting therefrom.

 

(b)                                 The Borrower agrees to indemnify the
Administrative Agent, each Issuing Bank and each Bank, their respective
affiliates and the respective directors, officers, agents and employees of the
foregoing (each an “Indemnitee”)
and hold each Indemnitee harmless from and against any and all liabilities,
losses, damages, costs and expenses of any kind, including, without limitation,
the reasonable fees and disbursements of counsel, which may be incurred by such
Indemnitee in connection with any investigative, administrative or judicial
proceeding (whether or not such Indemnitee shall be designated a party thereto)
brought or threatened relating to or arising out of this Agreement, the Prior
Agreement or any actual or proposed use of proceeds of Loans hereunder or under
the Prior Agreement; provided that
no Indemnitee shall have the right to be indemnified hereunder for such
Indemnitee’s own gross negligence or willful misconduct as determined by a
court of competent jurisdiction.

 

SECTION 9.04.  Sharing of Set–offs. 
Each Bank agrees that if it shall, by exercising any right of set–off or
counterclaim or otherwise, receive payment of a proportion of the aggregate
amounts outstanding hereunder held by it which is greater than the proportion
received by any other Bank in respect of the aggregate amounts outstanding
hereunder, the Bank receiving such proportionately greater payment shall
purchase such participations in the outstanding of the other Banks, and such
other adjustments shall be made, as may be required so that all such payments
on the amounts outstanding hereunder held by the Banks shall be shared by the
Banks pro rata; provided that nothing in this Section

 

45

 

shall impair the
right of any Bank to exercise any right of set–off or counterclaim it may have
and to apply the amount subject to such exercise to the payment of indebtedness
of the Borrower other than its indebtedness hereunder.  The Borrower agrees, to the fullest extent it
may effectively do so under applicable law, that any holder of a participation
in the obligations outstanding hereunder, whether or not acquired pursuant to
the foregoing arrangements, may exercise rights of set–off or counterclaim and
other rights with respect to such participation as fully as if such holder of a
participation were a direct creditor of the Borrower in the amount of such
participation.

 

SECTION 9.05.  Amendments and Waivers. 
Any provision of this Agreement or the Notes may be amended or waived
if, but only if, such amendment or waiver is in writing and is signed by the
Borrower and the Required Banks (and, if the rights or duties of the
Administrative Agent are affected thereby, by the Administrative Agent); provided that no such amendment or waiver shall:

 

(a)                                  unless signed by all the Banks, (i) increase
or decrease the Commitment of any Bank (except for a ratable decrease in the
Commitments of all Banks) or subject any Bank to any additional obligation, (ii) reduce
the principal of or rate of interest on any Loan or LC Disbursement or any
fees hereunder, (iii) postpone the date fixed for any payment of principal
of or interest on any Loan, any reimbursement obligations in respect of any
Letters of Credit or any fees hereunder or for any termination of any
Commitment, (iv) change the percentage of the Commitments or of the
aggregate unpaid principal amount of the Notes, or the number of Banks, which
shall be required for the Banks or any of them to take any action under this Section or
any other provision of this Agreement, (v) change this clause 9.05(a) or
(vi) change the pro-rata sharing or pro-rata payment distribution
provisions of this Agreement; or

 

(b)                                 unless signed by an Issuing Bank, amend,
modify or otherwise affect the rights or duties of such Issuing Bank; or

 

(c)                                  unless signed by the Swingline Bank,
amend, modify or otherwise affect the rights or duties of the Swingline Bank.

 

Notwithstanding clause (a) preceding, the Commitments may be
increased pursuant to an Increased Commitment Supplement executed in accordance
with the terms and conditions of Section 2.17 which only needs to be
signed by the Borrower, the Administrative Agent and the Banks increasing or
providing new Commitments thereunder if the Increased Commitment Supplement
does not increase the aggregate amount of the Commitments to an amount in
excess of $350,000,000.

 

SECTION 9.06.  Successors and Assigns. 
(a) The provisions of this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby (including any affiliate of any Issuing Bank that
issues any Letter of Credit), except that (i) the Borrower may not assign
or otherwise transfer any of its rights or obligations hereunder without the
prior written consent of each Bank (and any attempted assignment or transfer by
the Borrower without such consent shall be null and void) and (ii) no Bank
may assign or otherwise transfer its rights or obligations hereunder except in
accordance with this Section.  Nothing in
this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns
permitted hereby (including any affiliate of any Issuing Bank that issues any
Letter of Credit), Participants (to the extent provided in clause (c) of
this Section) and, to the extent expressly contemplated hereby, each
Indemnitee) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

 

(b)                                 (i)                                     Subject to the conditions set forth in
clause (b)(ii) below, any Bank may assign to one or more assignees
all or a portion of its rights and obligations under this Agreement

 

46

 

(including all or
a portion of its Commitment and the Loans at the time owing to it) with the
prior written consent (such consent not to be unreasonably withheld or delayed)
of:

 

(A)                              the Borrower, provided
that no consent of the Borrower shall be required for an assignment to a Bank,
an affiliate of a Bank, an Approved Fund or, if an Event of Default has
occurred and is continuing, to any other assignee; and

 

(B)                                the Administrative Agent, provided that no consent of the Administrative Agent shall
be required for an assignment of any Commitment to an assignee that is a Bank
with a Commitment immediately prior to giving effect to such assignment, an
affiliate of a Bank or an Approved Fund.

 

(ii)                                  Assignments shall be subject to the
following additional conditions:

 

(A)                              except in the case of an assignment to a
Bank or an affiliate of a Bank, an Approved Fund or an assignment of the entire
remaining amount of the assigning Bank’s Commitment or Loans, the amount of the
Commitment or Loans of the assigning Bank subject to each such assignment
(determined as of the date the Assignment and Assumption with respect to such
assignment is delivered to the Administrative Agent) shall not be less than
$5,000,000 unless each of the Borrower and the Administrative Agent otherwise
consent, provided that no such consent of the
Borrower shall be required if an Event of Default has occurred and is
continuing;

 

(B)                                each partial assignment shall be made as
an assignment of a proportionate part of all the assigning Bank’s rights and
obligations under this Agreement;

 

(C)                                the parties to each assignment shall
execute and deliver to the Administrative Agent an Assignment and Assumption,
together with a processing and recordation fee of $3,500; and

 

(D)                               the assignee, if it shall not be a Bank,
shall deliver to the Administrative Agent an Administrative Questionnaire.

 

For the purposes of this Section 9.06(b), the
term “Approved Fund” means any Person (other
than a natural person) that is engaged in making, purchasing, holding or
investing in bank loans and similar extensions of credit in the ordinary course
of its business and that is administered or managed by (a) a Bank, (b) an
affiliate of a Bank or (c) an entity or an affiliate of an entity that
administers or manages a Bank.

 

(iii)                               Subject to acceptance and recording
thereof pursuant to clause (b)(iv) of this Section, from and after
the effective date specified in each Assignment and Assumption the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Bank
under this Agreement, and the assigning Bank thereunder shall, to the extent of
the interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Bank’s rights and obligations under
this Agreement, such Bank shall cease to be a party hereto but shall continue
to be entitled to the benefits of Article 8).  Any assignment or transfer by a Bank of
rights or obligations under this Agreement that does not comply with this Section 9.06
shall be treated for purposes of this Agreement as a sale by such Bank of a
participation in such rights and obligations in accordance with paragraph (c) of
this Section.

 

(iv)                              The Administrative Agent, acting for this
purpose as an agent of the Borrower, shall maintain at one of its offices a
copy of each Assignment and Assumption delivered to it

 

47

 

and a register for
the recordation of the names and addresses of the Banks, and the Commitment of,
and principal amount of the Loans and LC Disbursements owing to, each Bank
pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent, the Issuing Banks and
the Banks may treat each Person whose name is recorded in the Register pursuant
to the terms hereof as a Bank hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. 
The Register shall be available for inspection by the Borrower, any
Issuing Bank and any Bank, at any reasonable time and from time to time upon
reasonable prior notice.

 

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

 

(c)                                  (i)                                     Any Bank may, without the consent of the
Borrower, the Administrative Agent, any Issuing Bank, or the Swingline Bank
sell participations to one or more banks or other entities (a “Participant”) in all or a portion of such Bank’s rights
and/or obligations under this Agreement (including all or a portion of its
Commitment and the Loans owing to it); provided that (A) such
Bank’s obligations under this Agreement shall remain unchanged, (B) such
Bank shall remain solely responsible to the other parties hereto for the
performance of such obligations and (C) the Borrower, the Administrative
Agent, each Issuing Bank and the other Banks shall continue to deal solely and
directly with such Bank in connection with such Bank’s rights and/or
obligations under this Agreement.  Any
agreement or instrument pursuant to which a Bank sells such a participation
shall provide that such Bank shall retain the sole right to enforce the Loan
Documents and to approve any amendment, modification or waiver of any provision
of the Loan Documents; provided that
such agreement or instrument may provide that such Bank will not, without the
consent of the Participant, agree to any amendment, modification or waiver
described in Section 9.05(a) that affects such Participant.  Subject to paragraph (c)(ii) of
this Section, the Borrower agrees that each Participant shall be entitled to
the benefits of Article 8 to the same extent as if it were a Bank and had
acquired its interest by assignment pursuant to paragraph (b) of this
Section.  To the extent permitted by law,
each Participant also shall be entitled to the benefits of Section 9.04 as
though it were a Bank, provided such Participant agrees to be subject to this
Agreement as though it were a Bank.

 

(ii)                                  A Participant shall not be entitled to
receive any greater payment under Article 8 than the applicable Bank would
have been entitled to receive with respect to the participation sold to such
Participant, unless the sale of the participation to such Participant is made
with the Borrower’s prior written consent. 
A Participant that would be a Foreign Bank if it were a Bank shall not
be entitled to the benefits of Section 8.04 unless the Borrower is
notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 8.04 as
though it were a Bank.

 

(d)                                 Any Bank may at any time pledge or assign
a security interest in all or any portion of its rights under this Agreement to
secure obligations of such Bank, including without limitation any pledge or
assignment to secure obligations to a Federal Reserve Bank, and this Section shall
not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security
interest shall release a Bank from any of its obligations hereunder or
substitute any such pledgee or assignee for such Bank as a party hereto.

 

48

 

SECTION 9.07.  Collateral.  Each of
the Banks represents to the Administrative Agent and each of the other Banks
that it in good faith is not relying upon any “margin stock” (as defined in
Regulation U) as collateral in the extension or maintenance of the credit
provided for in this Agreement.

 

SECTION 9.08.  Governing Law; Submission to Jurisdiction.  This Agreement and each Note shall be
governed by and construed in accordance with the laws of the State of New
York.  This governing law election has
been made by the parties in reliance (at least in part) on Section 5–1401
of the General Obligations Law of the State of New York, as amended (as and to
the extent applicable), and other applicable law.  The Borrower hereby submits to the
nonexclusive jurisdiction of the United States District Court for the Southern
District of New York and of any New York State court sitting in New York City
for purposes of all legal proceedings arising out of or relating to this
Agreement or the transactions contemplated hereby.  The Borrower irrevocably waives, to the
fullest extent permitted by law, any objection which it may now or hereafter
have to the laying of the venue of any such proceeding brought in such a court
and any claim that any such proceeding brought in such a court has been brought
in an inconvenient forum.

 

SECTION 9.09.  Counterparts; Integration; Effectiveness; Amendment and Restatement.  This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument.  This Agreement constitutes the entire
agreement and understanding among the parties hereto and supersedes any and all
prior agreements and understandings, oral or written, relating to the subject
matter hereof.  This Agreement shall
become effective upon receipt by the Administrative Agent of counterparts
hereof signed by each of the parties hereto (or, in the case of any party as to
which an executed counterpart shall not have been received, receipt by the
Administrative Agent in form satisfactory to it of telegraphic, telex,
facsimile or other written confirmation from such party of execution of a
counterpart hereof by such party).  This
Agreement amends and restated in its entirety the Prior Agreement.  However, for all matters arising prior to the
Effective Date (including the accrual and payment of interest and fees, and
matters relating to indemnification and compliance with financial covenants),
the terms of the Prior Agreement (as unmodified by this Agreement) shall
control and are hereby ratified and confirmed. 
The Borrower represents and warrants that as of the Effective Date there
are no claims or offsets against or defenses or counterclaims to its obligations
under the Prior Agreement or any of the other Loan Documents.

 

SECTION 9.10.  Severability.  Any
provision of this Agreement held to be invalid, illegal or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality or unenforceability without affecting the validity,
legality and enforceability of the remaining provisions hereof; and the
invalidity of a particular provision in a particular jurisdiction shall not
invalidate such provision in any other jurisdiction.

 

SECTION 9.11.  Headings.  Article and
Section headings and the Table of Contents used herein are for convenience
of reference only, are not part of this Agreement and shall not affect the
construction of, or be taken into consideration in interpreting, this
Agreement.

 

SECTION 9.12.  Limitation of Liability. 
None of the Administrative Agent, any Issuing Bank, any Bank, or any
affiliate, officer, director, employee, attorney, or Administrative Agent
thereof shall have any liability with respect to, and Borrower hereby waives,
releases, and agrees not to sue any of them upon, any claim for any special,
indirect, incidental, consequential or punitive damages suffered or incurred by
the Borrower in connection with, arising out of, or in any way related to any
of the Loan Documents, or any of the transactions contemplated by any of the
Loan Documents.

 

SECTION 9.13.  Construction.  The
Borrower, the Administrative Agent and each Bank acknowledges that each of them
has had the benefit of legal counsel of its own choice and has been

 

49

 

afforded an
opportunity to review the Loan Documents with its legal counsel and that the
Loan Documents shall be construed as if jointly drafted by the parties thereto.

 

SECTION 9.14.  Independence of Covenants. 
All covenants under the Loan Documents shall be given independent effect
so that if a particular action or condition is not permitted by any of such
covenants, the fact that it would be permitted by an exception to, or be
otherwise within the limitations of, another covenant shall not avoid the
occurrence of a Default if such action is taken or such condition exists.

 

SECTION 9.15.  WAIVER OF JURY TRIAL. 
EACH OF THE BORROWER, THE ADMINISTRATIVE AGENT, THE ISSUING BANK AND THE
BANKS HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

 

SECTION 9.16.  Confidentiality.  Each of the Administrative Agent, each
Issuing Bank and each Bank agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed: (a) to
its and its affiliates’ directors, officers, employees and agents, including accountants,
legal counsel and other advisors (it being understood that the Persons to whom
such disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (b) to
the extent requested by any regulatory authority, (c) to the extent  required by applicable laws or regulations or
by any subpoena or similar legal process, (d) to any other party to this
Agreement, (e) in connection with the exercise of any remedies hereunder
or any suit, action or proceeding relating to this Agreement or the enforcement
of rights hereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or
Participant in, or any prospective assignee of or Participant in, any of its
rights or obligations under this Agreement and (ii) any actual or
prospective counterparty (or its advisors) to any swap or derivative
transaction relating to the Borrower and its obligations, (g) with the
consent of the Borrower or (h) to the extent such Information (i) becomes
publicly available other than as a result of a breach of this Section or (ii) becomes
available to the Administrative Agent, any Issuing Bank or any Bank on a
nonconfidential basis from a source other than the Borrower.  For the purposes of this Section, “Information” means all information received from the
Borrower relating to the Borrower or its business, other than any such
information that is available to the Administrative Agent, any Issuing Bank or
any Bank on a nonconfidential basis prior to disclosure by the Borrower;
provided that, in the case of information received from the Borrower after the
date hereof, such information is clearly identified at the time of delivery as
confidential.  Any Person required to
maintain the confidentiality of Information as provided in this Section shall
be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such Information
as such Person would accord to its own confidential information.  Notwithstanding anything in any commitment or fee
letter executed in connection herewith to the contrary or the forgoing
provisions, the parties hereto may disclose to any Person, without limitation
of any kind, the “tax treatment” and “tax structure” (in each case, within the
meaning of Treasury Regulation Section 1.6011–4) of the transactions
contemplated hereby and all materials of any kind (including opinions or other
tax analyses) that are provided to the Borrower relating to such tax treatment
and tax structure, except that, with respect to any document or similar item
that in either case contains information concerning the tax treatment or tax
structure of the transactions contemplated hereby as well as other information,
this proviso shall only apply to such portions of the document or similar item
that relate to the tax treatment or tax structure of the such transactions.

 

50

 

SECTION 9.17.  USA PATRIOT Act.  Each
Bank that is subject to the requirements of the USA Patriot Act (Title III of
Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”)
hereby notifies the Borrower that pursuant to the requirements of the Act, it
is required to obtain, verify and record information that identifies the
Borrower, which information includes the name and address of the Borrower and
other information that will allow such Bank to identify the Borrower in
accordance with the Act.

 

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

 

	
   

  	
  CARLISLE COMPANIES INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Carol P. Lowe

  	
   

  
	
   

  	
   

  	
  Carol P. Lowe, Vice President & Chief Financial

  Officer

  

 

51

 

	
   

  	
  JPMORGAN CHASE BANK, N.A. (formerly JPMorgan

  Chase Bank and as successor in interest by merger to

  Bank One, N.A.) as Administrative Agent, Issuing Bank

  and Swingline Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ 
  Michael Lister

  	
   

  
	
   

  	
   

  	
  Michael Lister, Senior
  Vice President

  

 

52

 

	
   

  	
  WACHOVIA
  BANK, NATIONAL ASSOCIATION, as

  syndication agent and as a Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/  J.
  Andrew Phelps

  	
   

  
	
   

  	
   

  	
  J.
  Andrew Phelps, Vice President

  

 

53

 

	
   

  	
  BANK OF AMERICA, N.A., as co–documentation

  agent and as a Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ 
  Bryan A. Smith

  	
   

  
	
   

  	
   

  	
  Name:

  	
    Bryan
  A. Smith

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Vice
  President

  	
   

  

 

54

 

	
   

  	
  SUNTRUST BANK, as co–documentation agent and as

  a Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ 
  Thomas F. Parrott

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Thomas
  F. Parrott

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  	
   

  
						

 

55

 

	
   

  	
  THE BANK OF TOKYO–MITSUBISHI, LTD.,

  NY BRANCH, as co–documentation agent and as a

  Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ 
  Christian A. Giordano

  	
   

  
	
   

  	
   

  	
  Name:

  	
    Christian
  A. Giordano

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Authorized
  Signatory

  	
   

  

 

56

 

	
   

  	
  BNP PARIBAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/  Henry
  Setina

  	
   

  
	
   

  	
   

  	
  Name:

  	
    Henry
  Setina

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ 
  Lloyd Cox

  	
   

  
	
   

  	
   

  	
  Name:

  	
    Lloyd
  Cox

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Managing
  Director

  	
   

  

 

57

 

	
   

  	
  NATIONAL CITY BANK OF PENNSYLVANIA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ 
  Michael T. Keenan

  	
   

  
	
   

  	
   

  	
  Michael
  T. Keenan, Assistant Vice President

  

 

58

 

	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/  J.
  David Parker, Jr.

  	
   

  
	
   

  	
   

  	
  Name:

  	
    J.
  David Parker, Jr.

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Vice
  President

  	
   

  

 

59

 

	
   

  	
  CALYON NEW YORK BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ 
  Scott R. Chappelka

  	
   

  
	
   

  	
   

  	
  Name:

  	
    Scott
  R. Chappelka

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ 
  Michael Madnick

  	
   

  
	
   

  	
   

  	
  Name:

  	
    Michael
  Madnick

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Director

  	
   

  

 

60

 

	
   

  	
  BANK HAPOALIM B.M.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/  James P. Surless

  	
   

  
	
   

  	
   

  	
  Name:

  	
    James
  P. Surless

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Vice
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ 
  Laura Anne Raffa

  	
   

  
	
   

  	
   

  	
  Name:

  	
    Laura
  Anne Raffa

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Executive
  Vice President & Corporate

  	
   

  
	
   

  	
   

  	
   

  	
      Manager

  	
   

  

 

61

 

	
   

  	
  CITICORP
  NORTH AMERICA, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ 
  George Calfo

  	
   

  
	
   

  	
   

  	
  Name:

  	
    George
  Calfo

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Managing
  Director

  	
   

  

 

62

 

	
   

  	
  MIZUHO
  CORPORATE BANK, LTD.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ 
  Robert Gallagher

  	
   

  
	
   

  	
   

  	
  Name:

  	
    Robert
  Gallagher

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Senior
  Vice President

  	
   

  

 

63

 

	
   

  	
  BANK
  OF CHINA, NEW YORK BRANCH

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ 
  Richard Bradspies

  	
   

  
	
   

  	
   

  	
  Name:

  	
    Richard
  Bradspies

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Deputy
  General Manager

  	
   

  

 

64

 

	
   

  	
  THE
  NORINCHUKIN BANK, NEW YORK BRANCH

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ 
  Masanori Shoji

  	
   

  
	
   

  	
   

  	
  Name:

  	
    Masanori
  Shoji

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Joint
  General Manager

  	
   

  

 

65

 

INDEX OF EXHIBITS AND SCHEDULES

 

 

	
  SCHEDULE 1.01

  	
   

  	
  –

  	
   

  	
  Commitments

  
	
  SCHEDULE 1.01(A)

  	
   

  	
  –

  	
   

  	
  Pricing Schedule

  
	
  SCHEDULE 1.01(B)

  	
   

  	
  –

  	
   

  	
  Existing Letters of Credit

  
	
  SCHEDULE 4.09

  	
   

  	
  –

  	
   

  	
  Material Subsidiaries

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
   

  	
  –

  	
   

  	
  Form of Note

  
	
  EXHIBIT B

  	
   

  	
  –

  	
   

  	
  Form of Money Market Quote Request

  
	
  EXHIBIT C

  	
   

  	
  –

  	
   

  	
  Form of Invitation for Money Market Quotes

  
	
  EXHIBIT D

  	
   

  	
  –

  	
   

  	
  Form of Money Market Quote

  
	
  EXHIBIT E

  	
   

  	
  –

  	
   

  	
  Form of Opinion of Counsel for the Borrower

  
	
  EXHIBIT F

  	
   

  	
  –

  	
   

  	
  Form of Assignment and Assumption Agreement

  
	
  EXHIBIT G

  	
   

  	
  –

  	
   

  	
  Form of Increased Commitment Supplement

  

 

 

SCHEDULE 1.01

to

Amended and Restated Credit Agreement

 

Commitments

 

	
  Bank

  	
   

  	
  Commitment

  	
   

  
	
  JPMorgan
  Chase Bank, N.A.

  	
   

  	
  $

  	
  32,500,000

  	
   

  
	
  Wachovia
  Bank, N. A.

  	
   

  	
  $

  	
  27,500,000

  	
   

  
	
  Bank of
  America, N.A.

  	
   

  	
  $

  	
  27,500,000

  	
   

  
	
  SunTrust Bank

  	
   

  	
  $

  	
  27,500,000

  	
   

  
	
  The Bank of
  Tokyo-Mitsubishi, LTD., NY Branch

  	
   

  	
  $

  	
  27,500,000

  	
   

  
	
  BNP Paribas

  	
   

  	
  $

  	
  22,500,000

  	
   

  
	
  National
  City Bank of Pennsylvania

  	
   

  	
  $

  	
  22,500,000

  	
   

  
	
  The Bank of
  New York

  	
   

  	
  $

  	
  22,500,000

  	
   

  
	
  Calyon New
  York Branch

  	
   

  	
  $

  	
  15,000,000

  	
   

  
	
  Bank
  Hapoalim, B.M.

  	
   

  	
  $

  	
  15,000,000

  	
   

  
	
  Citicorp
  North America, Inc.

  	
   

  	
  $

  	
  15,000,000

  	
   

  
	
  Mizuho
  Corporate Bank, LTD.

  	
   

  	
  $

  	
  15,000,000

  	
   

  
	
  Bank of
  China, New York Branch

  	
   

  	
  $

  	
  15,000,000

  	
   

  
	
  The
  Norinchukin Bank, New York Branch

  	
   

  	
  $

  	
  15,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Commitments

  	
   

  	
  $

  	
  300,000,000.00

  	
   

  

 

1

 

SCHEDULE 1.01(a)

to

Amended and Restated Credit Agreement

 

Pricing Schedule

 

Each
of “Euro–Dollar Margin”, “Base Margin”, “CD Margin” and “Facility Fee Rate” means, for any date, the rate per annum
set forth below in the row under such term, opposite, with respect to the
Euro–Dollar Margin and Base Margin, the applicable Utilization that applies as
of such date and in the column corresponding to the Pricing Level that applies
at such date:

 

	
  Utilization

  	
   

  	
  Level I

  	
   

  	
  Level II

  	
   

  	
  Level III

  	
   

  	
  Level IV

  	
   

  	
  Level V

  	
   

  
	
  Facility
  Fee Rate

  	
   

  
	
  Not
  Applicable

  	
   

  	
  0.100

  	
  %

  	
  0.125

  	
  %

  	
  0.150

  	
  %

  	
  0.200

  	
  %

  	
  0.250

  	
  %

  
	
  Euro-Dollar
  Margin

  	
   

  
	
  Utilization
  less than or equal to 50%

  	
   

  	
  0.400

  	
  %

  	
  0.500

  	
  %

  	
  0.600

  	
  %

  	
  0.800

  	
  %

  	
  1.000

  	
  %

  
	
  Utilization
  greater than 50%

  	
   

  	
  0.525

  	
  %

  	
  0.625

  	
  %

  	
  0.725

  	
  %

  	
  0.925

  	
  %

  	
  1.125

  	
  %

  
	
  Base
  Margin

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Utilization
  less than or equal to 50%

  	
   

  	
  0.000

  	
  %

  	
  0.000

  	
  %

  	
  0.000

  	
  %

  	
  0.000

  	
  %

  	
  0.000

  	
  %

  
	
  Utilization
  greater than 50%

  	
   

  	
  0.000

  	
  %

  	
  0.000

  	
  %

  	
  0.000

  	
  %

  	
  0.000

  	
  %

  	
  0.000

  	
  %

  
	
  CD
  Margin

  	
   

  
	
  Utilization
  less than or equal to 50%

  	
   

  	
  0.525

  	
  %

  	
  0.625

  	
  %

  	
  0.725

  	
  %

  	
  0.925

  	
  %

  	
  1.125

  	
  %

  
	
  Utilization
  greater than 50%

  	
   

  	
  0.650

  	
  %

  	
  0.750

  	
  %

  	
  0.850

  	
  %

  	
  1.050

  	
  %

  	
  1.250

  	
  %

  

 

For
purposes of this Schedule, the following terms have the following meanings:

 

“Level I” applies at any date if, at such date, the Borrower’s
senior unsecured bank or other unsecured senior debt is rated BBB+ or higher by
S&P or Baa1 or higher by Moody’s.

 

“Level II” applies at any date if, at such date, the Borrower’s
senior unsecured bank or other unsecured senior debt is rated BBB by S&P or
Baa2 by Moody’s.

 

“Level III” applies at any date if, at such date, the
Borrower’s senior unsecured bank or other unsecured senior debt is rated BBB–by
S&P or Baa3 by Moody’s.

 

“Level IV” applies at any date if, at such date, the Borrower’s
senior unsecured bank or other unsecured senior debt is rated BB+ by S&P or
Bal by Moody’s.

 

“Level V” applies at any date, if at such date, no other
Pricing Level applies.

 

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

 

“Pricing Level” refers to the determination of which of
Level I, Level II, Level III, Level IV or Level V
applies at any date.

 

1

 

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

 

“Utilization” means at any date the percentage equivalent of
a fraction: (i) the numerator of which is the sum of (A) the
aggregate outstanding principal amount of the Loans after giving effect to any
borrowing or payment on such date plus (B) the LC Exposure after giving
effect to any Letter of Credit issuance or payment on such date and
(ii) the denominator of which is the aggregate amount of the Commitments
at such date, after giving effect to any reduction of the Commitments on such
date.

 

The credit ratings to be utilized for purposes of this Schedule are
those assigned to the senior unsecured bank debt of the Borrower without
third–party credit enhancement and any rating assigned to any other debt
security of the Borrower shall
be disregarded.  The rating in effect at
any date is that in effect at the close of business on such date.  The applicable “Pricing Level” for purposes
of this definition shall be the Pricing Level set forth above which corresponds
with such credit ratings.  In the event
the ratings assigned by S&P or Moody’s fall in different Pricing Levels,
the Pricing Level to be used shall be the Pricing Level containing the highest
rating; provided that if the difference is more than one full rating category
(with changes in the +, - or numerical modifiers associated with the ratings
being considered one full rating category for purposes of this proviso), the
Pricing Level to be used shall be the Pricing Level containing the rating which
is one above the lowest rating assigned. 
If the rating system of S&P or Moody’s shall change or if S&P
and Moody’s both no longer rate the unsecured senior bank debt of the Borrower,
the parties hereto shall negotiate in good faith to amend the references to
specific ratings in this definition (including by way of substituting another
rating agency mutually acceptable to the Borrower and the Administrative Agent
for the rating agency with respect to which the rating system has changed) to
reflect such changed rating system, and if an agreement with the Borrower on
this point cannot be reached, the Administrative Agent, acting in good faith,
shall determine the applicable Pricing Level. 
Pending agreement on such amendment or the Administrative Agent’s
determination, the rating in effect immediately prior to such change will be
used in determining the Pricing Level hereunder.  As of the Effective Date, the Pricing Level
is Level II.

 

2

 

SCHEDULE 1.01(b)

to

Amended and Restated Credit Agreement

 

Existing Letters of Credit

 

None

 

 

SCHEDULE 4.09

to

Amended and Restated Credit Agreement

 

Material Subsidiaries

(as of June 9, 2005)

 

1.                                       Carlisle
Corporation

 

2.                                       Trail King
Industries, Inc.

 

3.                                       Walker
Stainless Equipment Company

 

4.                                       Motion
Control Industries, Inc.

 

5.                                       Carlisle
FoodService Products, Incorporated

 

6.                                       Carlisle
Tire & Wheel Company

 

7.                                       Carlisle
Engineered Products, Inc.

 

8.                                       Tensolite
Company

 

9.                                       Carlisle
Syntec Incorporated

 

10.                                 Carlisle
International, Inc.

 

11.                                 Carlisle
Power Transmission Products, Inc.

 

12.                                 Carlisle
Insurance Company

 

13.                                 Carlisle
Coatings & Waterproofing Incorporated

 

14.                                 Carlisle
Holding ApS

 

15.                                 CSL
Manufacturing CV

 

16.                                 Carlisle
SPV, Inc.

 

 

EXHIBIT
A

to

Amended and Restated Credit Agreement

 

Note

 

	
  $                                  

  	
  Dallas, Texas

  

 

For
value received, Carlisle Companies Incorporated, a Delaware corporation (the “Borrower”), promises to pay to the order of                                                   (the
“Bank”), for the account of its
Applicable Lending Office, the unpaid principal amount of each Loan made by the
Bank to the Borrower pursuant to the Credit Agreement referred to below on the
maturity date provided for in the Credit Agreement.  The Borrower promises to pay interest on the
unpaid principal amount of each such Loan on the dates and at the rate or rates
provided for in the Credit Agreement. 
All such payments of principal and interest shall be made in lawful
money of the United States in Federal or other immediately available funds at
the office of the Administrative Agent.

 

All
Loans made by the Bank, the respective types and maturities thereof and all
repayments of the principal thereof shall be recorded by the Bank and, if the
Bank so elects in connection with any transfer or enforcement hereof, appropriate
notations to evidence the foregoing information with respect to each such Loan
then outstanding may be endorsed by the Bank on the schedule attached
hereto, or on a continuation of such schedule attached to and made a part
hereof, provided that the failure of the Bank to make any such recordation or
endorsement shall not affect the obligations of the Borrower hereunder or under
the Credit Agreement.

 

This
note is one of the Notes referred to in the Amended and Restated Credit
Agreement dated as of June 9, 2005 among Carlisle Companies Incorporated,
the Banks party thereto, and JPMorgan Chase Bank, N.A. (formerly JPMorgan Chase
Bank) as Administrative Agent (as the same may be amended from time to time,
the “Credit Agreement”).  Terms defined in the Credit Agreement are
used herein with the same meanings. 
Reference is made to the Credit Agreement for provisions for the
prepayment hereof and the acceleration of the maturity hereof.

 

	
   

  	
  CARLISLE COMPANIES INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

 

EXHIBIT
B

to

Amended and Restated Credit Agreement

 

Form of Money Market Quote Request

[Date]

 

To:                            JPMorgan Chase Bank, N.A. (the “Administrative
Agent”)

 

From:                Carlisle Companies Incorporated (the “Borrower”)

 

Re:                             Amended and Restated Credit Agreement (as
amended from time to time, the “Credit Agreement”) dated as of June 9,
2005 among Carlisle Companies Incorporated, the Banks party thereto, and
JPMorgan Chase Bank, N.A. (formerly JPMorgan Chase Bank), as Administrative
Agent

 

We
hereby give notice pursuant to Section 2.03 of the Credit Agreement that
we request Money Market Quotes for the following proposed Money Market
Borrowing(s):

 

	
  Date of Borrowing:

  	
   

  	
   

  

 

	
  Principal Amount(1)

  	
   

  	
  Interest Period(2)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $

  	
   

  	
   

  	
   

  	
   

  
					

 

Such
Money Market Quotes should offer a Money Market [Margin] [Absolute Rate].  [The applicable base rate is the London
Interbank Offered Rate.]

 

Terms
used herein have the meanings assigned to them in the Credit Agreement.

 

	
   

  	
  CARLISLE COMPANIES

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

(1) Amount must be
$10,000,000 or a larger multiple of $1,000,000.

 

(2) Not less than one
month (LIBOR Auction) or not less than 14 days (Absolute Rate Auction), subject
to the provisions of the definition of Interest Period.

 

 

EXHIBIT
C

to

Amended and Restated Credit Agreement

 

Form of Invitation for Money Market
Quotes

 

To                                 [Name of Bank]

 

Re:                               Invitation for Money Market Quotes to
Carlisle Companies Incorporated (the “Borrower”)

 

Pursuant
to Section 2.03 of the Amended and Restated Credit Agreement dated as of June 9,
2005 among the Borrower, the Banks party thereto, and JPMorgan Chase Bank, N.A.
(formerly JPMorgan Chase Bank), as Administrative Agent, we are pleased on
behalf of the Borrower to invite you to submit Money Market Quotes to the
Borrower for the following proposed Money Market Borrowing(s):

 

	
  Date of Borrowing:

  	
   

  	
   

  

 

	
  Principal Amount

  	
   

  	
  Interest Period

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $

  	
   

  	
   

  	
   

  	
   

  
					

 

Such
Money Market Quotes should offer a Money Market [Margin] [Absolute Rate].  [The applicable base rate is the London
Interbank Offered Rate.]

 

Please
respond to this invitation by no later than [2:00 P.M.] [9:30 A.M.]
(New York City time) on [date].

 

 

	
   

  	
  JPMorgan Chase Bank, N.A., as
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  

 

 

EXHIBIT
D

to

Amended and Restated Credit Agreement

 

Form of Money Market Quote

 

To:                              JPMorgan Chase Bank, N.A. as
Administrative Agent

 

Re                                  Money Market Quote to Carlisle Companies
Incorporated (the “Borrower”)

 

In
response to your invitation on behalf of the Borrower dated                               ,
20         , we hereby make the
following Money Market Quote on the following terms:

 

	
  1.

  	
   

  	
  Quoting Bank:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Person to
  contact at Quoting Bank:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Date of
  Borrowing:

  	
  (3)

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  We hereby offer
  to make Money Market Loan(s) in the following principal amounts, for the
  following Interest Periods and at the following rates:

  
							

 

	
  Principal

  	
   

  	
   

  	
   

  	
  Money Market

  	
   

  
	
  Amount(4)

  	
   

  	
  Interest Period(5)

  	
   

  	
  [Margin](6)

  	
   

  	
  [Absolute Rate](7)

  	
   

  
	
  $

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

[Provided,
that the aggregate principal amount of Money Market Loans for which the above
offers may be accepted shall not exceed $                                       .](8)

 

(3) As specified in the
related Invitation.

 

(4) Principal amount bid
for each Interest Period may not exceed principal amount requested.  Specify aggregate limitation if the sum of
the individual offers exceeds the amount the Bank is willing to lend.  Bids must be made for $5,000,000 or a larger
multiple of $1,000,000.

 

(5) Not less than one
month or not less than 30 days, as specified in the related Invitation.  No more than five bids are permitted for each
Interest Period.

 

(6) Margin over or under
the London Interbank Offered Rate determined for the applicable Interest
Period.  Specify percentage (to the nearest
1/10,000 of 1%) and specify whether “PLUS” or “MINUS”

 

(7) Specify rate of
interest per annum (to the nearest 1/10,000 of 1%).

 

(8) Principal amount bid
for each Interest Period may not exceed principal amount requested.  Specify aggregate limitation if the sum of
the individual offers exceeds the amount the Bank is willing to lend.  Bids must be made for $5,000,000 or a larger
multiple of $1,000,000.

 

1

 

We
understand and agree that the offer(s) set forth above, subject to the
satisfaction of the applicable conditions set forth in the Amended and Restated
Credit Agreement dated as of June 9, 2005 among the Borrower, the Banks
party thereto, and JPMorgan Chase Bank, N.A. (formerly JPMorgan Chase Bank), as
Administrative Agent, irrevocably obligates us to make the Money Market Loan(s)
for which any offer(s) are accepted, in whole or in part.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [NAME OF BANK]

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  
						

 

2

 

EXHIBIT
E

to

Amended and Restated Credit Agreement

 

Opinion of

Counsel for the Borrower

 

June 9,
2005

 

To the Banks and the Administrative
Agent

Referred to Below

c/o JPMorgan Chase Bank, N.A., as
Administrative Agent

2001 Ross Ave. 3rd Floor

Dallas, Texas 75201

 

Dear Sirs:

 

I
am Vice President, Secretary and General Counsel of Carlisle Companies
Incorporated (the “Borrower”) and in my capacity as an employee of the
Borrower, I have participated in the execution and delivery of the Amended and
Restated Credit Agreement (the “Credit Agreement”) dated as of June 9, 2005
among the Borrower, the Banks party thereto, and JPMorgan Chase Bank, N.A.
(formerly JPMorgan Chase Bank), as Administrative Agent.  Terms defined in the Credit Agreement are
used herein as therein defined.  This
opinion is being rendered to you pursuant to Section 3.01(b) of the Credit
Agreement.

 

I
have examined originals or copies, certified or otherwise identified to my
satisfaction, of such documents, corporate records, certificates of public
officials and other instruments and have conducted such other investigations of
fact and law as I have deemed necessary or advisable for purposes of this
opinion.

 

The
opinions expressed in this letter are limited to the laws of the States of New
York and Delaware and the Federal laws of the United States of America.

 

Upon
the basis of the foregoing, I am of the opinion that:

 

1.                                       The Borrower
is a corporation duly incorporated, validly existing and in good standing under
the laws of Delaware and has all corporate powers and all material governmental
licenses, authorizations, consents and approvals required to carry on its
business as now conducted.

 

2.                                       The
execution, delivery and performance by the Borrower of the Credit Agreement and
the Notes are within the corporate powers of the Borrower, have been duly
authorized by all necessary corporate action, require no action by or in
respect of, or filing with, any governmental body, agency or official and do
not contravene, or constitute a default under, any provision of applicable law
or regulation or of the certificate of incorporation or by–laws of the Borrower
or of any agreement, judgment, injunction, order, decree or other instrument
binding upon the Borrower or any of its Material Subsidiaries or result in the
creation or imposition of any Lien on any asset of the Borrower or any of its
Material Subsidiaries.

 

3.                                       The Credit
Agreement constitutes a valid and binding agreement of the Borrower and each
Note constitutes a valid and binding obligation of the Borrower, in each case
enforceable in

 

1

 

accordance with its terms except as the same may be limited
by bankruptcy, insolvency or similar laws affecting creditors’ rights generally
and by general principles of equity.

 

4.                                       There is no
action, suit or proceeding pending against, or to the best of our knowledge
threatened against or affecting, the Borrower or any of its Subsidiaries before
any court or arbitrator or any governmental body, agency or official, in which
there is a reasonable possibility of an adverse decision which could materially
adversely affect the business, consolidated financial position or consolidated
results of operations of the Borrower and its Consolidated Subsidiaries,
considered as a whole, or which in any manner draws into question the validity
of the Credit Agreement or the Notes.

 

5.                                       Each of the
Borrower’s corporate Subsidiaries is a corporation validly existing and in good
standing under the laws of its jurisdiction of incorporation, and has all
corporate powers and all material governmental licenses, authorizations,
consents and approvals required to carry on its business as now conducted
except where the failure to have such powers, licenses, authorizations, consents
or approvals could not reasonably be expected to have a Material Adverse
Effect.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  

 

2

 

EXHIBIT
F

to

Amended and Restated Credit Agreement

 

Assignment And
Assumption

 

This
Assignment and Assumption (the “Assignment and Assumption”) is dated as
of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”).  Capitalized terms used but not defined herein
shall have the meanings given to them in the Credit Agreement identified below
(as amended, the “Credit Agreement”), receipt of a copy of which is
hereby acknowledged by the Assignee.  The
Standard Terms and Conditions set forth in Annex 1 attached hereto are
hereby agreed to and incorporated herein by reference and made a part of this
Assignment and Assumption as if set forth herein in full.

 

For
an agreed consideration, the Assignor hereby irrevocably sells and assigns to
the Assignee, and the Assignee hereby irrevocably purchases and assumes from
the Assignor, subject to and in accordance with the Standard Terms and
Conditions and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below (i) all of the Assignor’s
rights and obligations in its capacity as a Bank under the Credit Agreement and
any other documents or instruments delivered pursuant thereto to the extent
related to the amount and percentage interest identified below of all of such
outstanding rights and obligations of the Assignor under the respective
facilities identified below (including any letters of credit, guarantees, and
swingline loans included in such facilities) and (ii) to the extent
permitted to be assigned under applicable law, all claims, suits, causes of
action and any other right of the Assignor (in its capacity as a Bank) against
any Person, whether known or unknown, arising under or in connection with the
Credit Agreement, any other documents or instruments delivered pursuant thereto
or the loan transactions governed thereby or in any way based on or related to
any of the foregoing, including contract claims, tort claims, malpractice
claims, statutory claims and all other claims at law or in equity related to
the rights and obligations sold and assigned pursuant to clause (i) above
(the rights and obligations sold and assigned pursuant to clauses (i) and
(ii) above being referred to herein collectively as the “Assigned Interest”).  Such sale and assignment is without recourse
to the Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by the Assignor.

 

	
  1.

  	
   

  	
  Assignor:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Assignee:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  [and is an affiliate/Approved Fund of [identify Bank]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Borrower(s):

  	
   

  	
  Carlisle Companies Incorporated

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Administrative Agent:

  	
   

  	
  JPMorgan Chase Bank, N.A., as the
  administrative agent under the Credit Agreement

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Credit Agreement:

  	
   

  	
  $300,000,000 Amended and Restated Credit
  Agreement dated as of June 9, 2005 among Carlisle Companies
  Incorporated, the Banks parties thereto, and JPMorgan Chase Bank, N.A.
  (formerly JPMorgan Chase Bank), as Administrative Agent

  

 

1

 

	
  6.

  	
   

  	
  Assigned Interest:

  	
   

  	
   

  

 

	
  Facility Assigned

  	
   

  	
  Aggregate Amount of

  Commitment/Loans for

  all Banks

  	
   

  	
  Amount of

  Commitment/Loans

  Assigned

  	
   

  	
  Percentage Assigned of

  Commitment/Loans

  	
   

  
	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  

 

Effective
Date:                               ,
20          [TO BE INSERTED
BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF
TRANSFER IN THE REGISTER THEREFOR.]

 

The
terms set forth in this Assignment and Assumption are hereby agreed to:

 

	
   

  	
  ASSIGNOR

  
	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE

  
	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
  [Consented to and] Accepted:

  	
   

  
	
   

  	
   

  
	
  JPMORGAN CHASE BANK, N.A.,

  	
   

  
	
  as Administrative Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  [Consented to:]

  	
   

  
	
   

  	
   

  
	
  CARLISLE COMPANIES INCORPORATED

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
									

 

2

 

ANNEX 1

 

AMENDED AND RESTATED CREDIT AGREEMENT
DATED JUNE 9, 2005 AMONG CARLISLE COMPANIES INCORPORATED, THE BANKS PARTY
THERETO AND JPMORGAN CHASE BANK, N.A., AS THE ADMINISTRATIVE AGENT

 

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

 

1.                                       Representations
and Warranties.

 

1.1  Assignor.  The Assignor (a) represents and warrants
that (i) it is the legal and beneficial owner of the Assigned Interest,
(ii) the Assigned Interest is free and clear of any lien, encumbrance or
other adverse claim and (iii) it has full power and authority, and has
taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby; and
(b) assumes no responsibility with respect to (i) any statements,
warranties or representations made in or in connection with the Credit
Agreement or any other Loan Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Loan
Documents or any collateral thereunder, (iii) the financial condition of
the Borrower, any of its Subsidiaries or Affiliates or any other Person
obligated in respect of any Loan Document or (iv) the performance or observance
by the Borrower, any of its Subsidiaries or Affiliates or any other Person of
any of their respective obligations under any Loan Document.

 

1.2.  Assignee.  The Assignee (a) represents and warrants
that (i) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and Assumption and to
consummate the transactions contemplated hereby and to become a Bank under the
Credit Agreement, (ii) it satisfies the requirements, if any, specified in
the Credit Agreement that are required to be satisfied by it in order to
acquire the Assigned Interest and become a Bank, (iii) from and after the
Effective Date, it shall be bound by the provisions of the Credit Agreement as
a Bank thereunder and, to the extent of the Assigned Interest, shall have the
obligations of a Bank thereunder, (iv) it has received a copy of the
Credit Agreement, together with copies of the most recent financial statements
delivered pursuant to Section 5.01 thereof, as applicable, 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 and to
purchase the Assigned Interest on the basis of which it has made such analysis
and decision independently and without reliance on the Administrative Agent or
any other Bank, and (v) if it is a Foreign Bank, attached to the
Assignment and Assumption is any documentation required to be delivered by it
pursuant to the terms of the Credit Agreement, duly completed and executed by
the Assignee; and (b) agrees that (i) it will, independently and
without reliance on the Administrative Agent, the Assignor or any other Bank,
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Loan Documents, and (ii) it will perform in accordance with
their terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Bank.

 

2.                                       Payments.  From and after the Effective Date, the
Administrative Agent shall make all payments in respect of the Assigned
Interest (including payments of principal, interest, fees and other amounts) to
the Assignor for amounts which have accrued to but excluding the Effective Date
and to the Assignee for amounts which have accrued from and after the Effective
Date.

 

3.                                       General
Provisions.  This Assignment and
Assumption shall be binding upon, and inure to the benefit of, the parties
hereto and their respective successors and assigns.  This Assignment and Assumption may be
executed in any number of counterparts, which together shall constitute one
instrument.  Delivery of an executed
counterpart of a signature page of this Assignment and Assumption by telecopy
shall be effective as delivery of a manually executed counterpart of this
Assignment and Assumption.  This
Assignment and Assumption shall be governed by, and construed in accordance
with, the law of the State of New York.

 

 

EXHIBIT
G

to

Amended and Restated Credit Agreement

 

Form of Increased Commitment
Supplement

 

This
INCREASED COMMITMENT SUPPLEMENT (this “Supplement”) is dated as of                             ,         and
entered into by and among Carlisle Companies Incorporated, a Delaware
corporation (the “Borrower”), each of the banks or other lending institutions
which is a signatory hereto (the “Banks”), JPMorgan Chase Bank, N.A., as
administrative agent for itself and the other Banks (in such capacity, together
with its successors in such capacity, the “Administrative Agent”), and is made
with reference to that certain Amended and Restated Credit Agreement dated as
of June 9, 2005 (as amended, the “Credit Agreement”), by and among the
Borrower, the banks party thereto and the Agent.  Capitalized terms used herein without
definition shall have the same meanings herein as set forth in the Credit
Agreement.

 

RECITALS

 

WHEREAS,
pursuant to Section 2.18 of the Credit Agreement, the Borrower and the
Banks are entering into this Increased Commitment Supplement to provide for the
increase of the aggregate Commitments;

 

WHEREAS,
each Bank party [hereto and already a party to the Credit Agreement] wishes to
increase its Commitment [, and each Bank, to the extent not already a Bank
party to the Credit Agreement (herein a “New Bank”), wishes to become a Bank
party to the Credit Agreement];

 

WHEREAS,
the Banks are willing to agree to supplement the Credit Agreement in the manner
provided herein.

 

NOW,
THEREFORE, in consideration of the premises and the agreements, provisions and
covenants herein contained, the parties hereto agree as follows:

 

Section 1.                                            Increase in
Revolving Commitments. 
Subject to the terms and conditions hereof, each Bank severally agrees
that its Commitment shall be increased to [or in the case of a New Bank, shall
be] the amount set forth opposite its name on the signature pages hereof.

 

Section 2.                                            [New
Banks.  Each New Bank
(i) confirms that it has received a copy of the Credit Agreement and the
other Loan Documents, together with copies of the most recent financial
statements of the Borrower delivered under Section 5.01 and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Supplement; (ii) agrees that it
has, independently and without reliance upon the Administrative Agent, any
other Bank or any of their officers, directors, subsidiaries or affiliates and
based on such documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Supplement;
(iii) agrees that it will, independently and without reliance upon the
Administrative Agent, any other Bank or any of their officers, directors,
subsidiaries or affiliates and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under the Loan Documents; (iv) appoints and
authorizes the Administrative Agent to take such action as agent on its behalf
and to exercise such powers and discretion under the Loan Documents as are
delegated to the Administrative Agent by the terms thereof, together with such
powers and discretion as are reasonably incidental thereto; and (v) agrees
that it is a “Bank” under the Loan Documents and will

 

1

 

perform in accordance with their terms all of the obligations
that by the terms of the Loan Documents are required to be performed by it as a
Bank.

 

Section 3.                                            Conditions
to Effectiveness. 
Section 1 of this Supplement shall become effective only upon the
satisfaction of the following conditions precedent:

 

(a)                                  receipt by
the Administrative Agent of an opinion of counsel to the Borrower as to the
matters referred to in Section 4.01, 4.02 and 4.03 of the Credit Agreement
(with the term “Agreement” as used therein meaning this Supplement for purposes
of such opinion), dated the date hereof, satisfactory in form and substance to
the Agent.

 

(b)                                 receipt by
the Administrative Agent of certified copies of all corporate action taken by
the Borrower to authorize the execution, delivery and performance of this
Supplement; and

 

(c)                                  receipt by
the Administrative Agent of a certificate of the Secretary or an Assistant
Secretary of the Borrower certifying the names and true signatures of the
officers of the Borrower authorized to sign this Supplement and the other
documents to be delivered hereunder.

 

Section 4.                                            Representations
and Warranties. 
In order to induce the Banks to enter into this Supplement and to
supplement the Credit Agreement in the manner provided herein, the Borrower
represents and warrants to the Administrative Agent and each Bank that
(a) the representations and warranties contained in Article 4 of the
Credit Agreement are and will be true, correct and complete on and as of the
effective date hereof to the same extent as though made on and as of that date
and for that purpose, this Supplement shall be deemed to be included as part of
the Agreement referred to therein, and (b) no event has occurred and is
continuing or will result from the consummation of the transactions
contemplated by this Supplement that would constitute a Default.

 

Section 5.                                            Effect of
Supplement.  The terms and
provisions set forth in this Supplement shall modify and supersede all
inconsistent terms and provisions set forth in the Credit Agreement and except
as expressly modified and superseded by this Supplement, the terms and
provisions of the Credit Agreement are ratified and confirmed and shall
continue in full force and effect.  The
Borrower, the Administrative Agent, and the Banks agree that the Credit
Agreement as supplemented hereby and the other Loan Documents shall continue to
be legal, valid, binding and enforceable in accordance with their respective
terms.  Any and all agreements,
documents, or instruments now or hereafter executed and delivered pursuant to
the terms hereof or pursuant to the terms of the Credit Agreement as
supplemented hereby, are hereby amended so that any reference in such documents
to the Credit Agreement shall mean a reference to the Credit Agreement as
supplemented hereby.

 

Section 6.                                            Applicable
Law.  This Supplement
shall be governed by, and construed in accordance with, the laws of the State
of New York and applicable laws of the United States of America.

 

Section 7.                                            Counterparts,
Effectiveness.  This
Supplement may be executed in any number of counterparts, by different parties
hereto in separate counterparts and on telecopy counterparts, each of which
when so executed and delivered shall be deemed an original, but all such
counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and
attached to a single counterpart so that all signature pages are physically
attached to the same document.  This
Supplement (other than the provisions of Section 1 hereof, the
effectiveness of which is governed by Section 3 hereof) shall become
effective upon the execution of a counterpart hereof by the Borrower, the Banks
and receipt by the Borrower and the Administrative Agent of written or
telephonic notification of such execution and authorization of delivery
thereof.

 

2

 

Section 8.                                            Entire
Agreement.  This
Supplement embodies the final, entire agreement among the parties relating to
the subject matter hereof and supersede any and all previous commitments,
agreements, representations and understandings, whether oral or written,
relating to the subject matter hereof and may not be contradicted or varied by
evidence of prior, contemporaneous or subsequent oral agreements or discussions
of the parties hereto  there are no
unwritten oral agreements among the parties hereto.

 

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

 

 

	
   

  	
  CARLISLE COMPANIES INCORPORATED, as
  the

  Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  New Total Revolving Commitment:

  	
   

  
	
   

  	
   

  
	
  $

  	
   

  	
   

  	
  JPMORGAN CHASE BANK, N.A.,
  individually and as the Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  $

  	
   

  	
   

  	
  [BANK]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  $

  	
   

  	
   

  	
  [NEW BANK]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

3Exhibit 4.1

 

 

 

WARRANT AGREEMENT

 

Dated as of June 9, 2005

 

among

 

Pathmark Stores, Inc.

 

and

 

The Investors Identified on Annex I Attached
Hereto

 

 

 

 

WARRANT AGREEMENT

 

WARRANT AGREEMENT (the “Agreement”)
dated as of June 9, 2005 among Pathmark Stores, Inc. a Delaware corporation
(the “Company”), and the investors identified on Annex I attached hereto,
or their registered permitted assigns (the “Investors”).

 

RECITALS

 

WHEREAS, the Company
proposes to issue to the Investors two series of warrants, as hereinafter
described (the “Warrants”), to purchase an aggregate of 10,060,000 shares
and 15,046,350 shares respectively (subject to adjustment), of the Common
Stock, $.01 par value per share (the “Common Stock”) of the Company (the
shares of Common Stock issuable on exercise of the Warrants being referred to
herein as the “Warrant Shares”) pursuant to that certain Securities
Purchase Agreement dated as of March 23, 2005 by and among the Company and
the Investors (the “Purchase Agreement”).  All capitalized terms used but not defined
herein shall have the meanings ascribed to them in the Purchase Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the premises and the mutual agreements herein set forth, the
parties hereto agree as follows:

 

SECTION 1.                                Warrant Certificates.  The Company will issue and
deliver certificates evidencing the Warrants (the “Warrant Certificates”)
to the Investors pursuant to the terms of the Purchase Agreement.  Warrants to purchase an aggregate of 10,060,000
shares of Common Stock will be issued as “Series A
Warrants” in the form of Exhibit A hereto and Warrants to purchase an
aggregate of 15,046,350 shares of Common Stock will be issued as “Series B
Warrants” in the form of Exhibit B hereto. 
The Warrant Certificates may have such notations, legends and
endorsements as required by law, rules and regulations of applicable stock
exchanges or usage.  Such certificates
shall be in registered form only and shall be substantially in the applicable
forms set forth as Exhibits A and B attached hereto.  Warrant Certificates shall be dated the date
of issuance by the Company.

 

SECTION 2.                                Execution of Warrant Certificates.  Warrant Certificates shall be
signed on behalf of the Company by its Chairman of the Board or its Chief
Executive Officer, President or a Vice President.  Each such signature upon the Warrant
Certificates may be in the form of a facsimile signature of the present or any
future Chairman of the Board, Chief Executive Officer, President or Vice
President, and may be imprinted or otherwise reproduced on the Warrant
Certificates and for that purpose the Company may adopt and use the facsimile
signature of any person who shall have been Chairman of the Board, Chief
Executive Officer, President or Vice President, notwithstanding the fact that
at the time the Warrant Certificates shall be delivered or disposed of he shall
have ceased to hold such office.  Each
Warrant Certificate shall also be manually signed on behalf of the Company by
its Secretary or an Assistant Secretary under its corporate seal.  The seal of the Company may be in the form of
a facsimile thereof and may be impressed, affixed, imprinted or otherwise
reproduced on the Warrant Certificates.

 

 

SECTION 3.                                Registration.  The Company shall number and
register the Warrant Certificates in a register as they are issued.  The Company may deem and treat the registered
holder(s) of the Warrant Certificates (the “Holders”) as the absolute
owner(s) thereof (notwithstanding any notation of ownership or other writing
thereon made by anyone) for all purposes and shall not be affected by any
notice to the contrary.  The Warrants
shall be registered initially in such name or names as the Investors shall
designate.

 

SECTION 4.                                Restrictions on Transfer; Registration
of Transfers and Exchanges.  The Warrants (and any Warrant Shares issued
upon the exercise of the Warrants) shall not be transferable except in
accordance with the terms of this Agreement.

 

Prior to any proposed
transfer of the Warrants or the Warrant Shares, the transferring Holder will
deliver to the Company a Certificate of Transfer in the form attached to the
Warrant Certificate and, if so requested by the Company, such other information
relating to the proposed transfer and the identity of the proposed transferee
as the Company may reasonably request in order to confirm that the Warrants or
Warrant Shares, as applicable, may be sold or otherwise transferred in the
manner proposed.  Upon original issuance
thereof, and until such time as the same shall have been registered under the
Securities Act or sold pursuant to Rule 144 promulgated thereunder (or any
similar rule or regulation) each Warrant Certificate and any certificates
evidencing Warrant Shares shall bear any legend required pursuant to that
certain Stockholders’ Agreement of even date herewith by and among the
Investors and the Company (the “Stockholders’ Agreement”) unless, in the
opinion of qualified counsel, such legend is no longer required by the
Securities Act.

 

The Company shall from
time to time, subject to compliance with the applicable provisions of the
Stockholders’ Agreement, register the transfer of any outstanding Warrant
Certificates in a Warrant register to be maintained by the Company upon
surrender thereof accompanied by a written instrument or instruments of
transfer in form satisfactory to the Company, duly executed by the registered
Holder or Holders thereof or by the duly appointed legal representative thereof
or by a duly authorized attorney.  Upon
any such registration of transfer, a new Warrant Certificate shall be issued to
the transferee(s) and the surrendered Warrant Certificate shall be canceled and
disposed of by the Company.

 

Warrant Certificates may
be exchanged at the option of the Holder(s) thereof, when surrendered to the
Company at its office for another Warrant Certificate or other Warrant
Certificates of like series and tenor and representing in the aggregate a like
number of Warrants.  Warrant Certificates
surrendered for exchange shall be canceled and disposed of by the Company.

 

SECTION 5.                                Warrants; Exercise of Warrants.  Subject to the
terms of this Agreement, each Holder shall have the right, which may be
exercised at any time or from time to time during the applicable Exercise
Period (as defined below) to receive from the Company the number of fully paid
and nonassessable Warrant Shares (and such other consideration) which the
Holder may at the time be entitled to receive upon the exercise of such
Warrants and payment of the Series A Exercise Price or Series B Exercise Price,
as applicable, then in effect for such Warrant Shares.  In the alternative, each Holder of Series B
Warrants (but not Series A Warrants) may exercise its
right, during the Series B Exercise Period, to receive Warrant Shares on a net

 

3

 

basis, such that, without the exchange of any funds, the
Holder receives that number of Warrant Shares (and such other consideration)
otherwise issuable (or payable) upon exercise of its Series B Warrants less
that number of Warrant Shares having an aggregate Current Market Value (as
defined in Section 9) at the time of exercise equal to the aggregate Series
B Exercise Price that would otherwise have been paid by the Holder for the
Warrant Shares.  Each Warrant not
exercised during the Exercise Period shall become void and all rights
thereunder and all rights in respect thereof under this Agreement shall cease
as of such time.  No adjustments as to
dividends will be made upon exercise of the Warrants, except as otherwise expressly
provided herein.

 

The period during which
the Series A Warrants shall be exercisable (the “Series A Exercise Period”)
shall commence on the date hereof and expire at 5:00 p.m., New York time,
on June 9, 2008; provided, however,
that if at any time or from time to time, for any reason, whether as a result
of any action or inaction by the Company, any Investor or Investors or any
other person, the current exercisability of any Series A Warrants would, but
for this paragraph, result in a Change of Control Event as defined under the
indenture dated as of January 29, 2002 (“Indenture”) governing the
Company’s 8 3⁄4% Senior Subordinated Notes due 2012 (“2012 Notes”) (a “Control
Trigger Event”), (including, without limitation, because an Investor or
Investors, or any other “person” or “group” (as such terms are used in Sections
13(d) and 14(d) of the Exchange Act) that is an Affiliate of, or a member of a
group with, any of the Investors (an “Investor Group Member”) would
become the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act), directly or indirectly, of a majority of the voting power of the
Voting Stock (as defined in the Indenture) of the Company (any such person or
group, a “Controlling Holder”), then that number of Series A Warrants
(the “Affected Series A Warrants,” which number of Affected Series A Warrants
shall be apportioned among the Investor Group Members in the sole and absolute
discretion of the Investors’ Representative) the exercisability of which would,
but for this paragraph, result in such Change of Control Event shall, automatically
(without any action on the part of any person) and immediately prior to the
occurrence of such Control Trigger Event, cease to be exercisable, and shall
only become exercisable 61 days after the date on which any Holder sends
written notice to the Company of its intent to exercise any such Affected Series
A Warrants (an “Affected Warrant Exercise”); provided,
further, that the number of Affected Series
A Warrants shall increase automatically and immediately prior to the occurrence
of any subsequent Control Trigger Event that would result in such a Change of
Control Event, and decrease automatically and immediately after the occurrence
of any other action, inaction, event, circumstance or other condition that has
the effect of decreasing the number of Series A Warrants the current exercisability
of which would result in such a Change of Control Event, so that the number of
Affected Series A Warrants shall at all times prior to any Affected Warrant
Exercise equal only that number of Series A Warrants the current exercisability
of which would result in such a Change of Control Event.

 

The period during which
the Series B Warrants shall be exercisable (the “Series B Exercise Period”
and, together with the Series A Exercise Period, an “Exercise Period”)
shall (A) commence on the first to occur of (i) such time as none of the
Company’s 2012 Notes remain outstanding or such time as the Series B Warrants
may become exercisable without obligating the Company to make a Change of
Control Offer as defined under the Indenture; (ii) 61 days after the date on
which any Holder sends written notice to the Company of its intent to exercise
such Warrants, if, on or prior to the date on which such notice is sent, the
closing

 

4

 

price per share of
the Common Stock as quoted on the Nasdaq National Market equals or exceeds the
per share exercise price of the Series B Warrants, as adjusted from time to
time; or (iii) upon the occurrence of any event constituting a Change of Control
Event as defined in the Indenture and (B) expire at 5:00 p.m., New York
time, on June 9, 2015.

 

The price at which each Series
A Warrant shall be exercisable (the “Series A Exercise
Price”) shall initially be $8.50 per share, subject to adjustment pursuant
to the terms hereof.  The price at which
each Series B Warrant shall be exercisable (the “Series B Exercise Price”)
shall initially be $15.00 per share, subject to adjustment pursuant to the
terms hereof.

 

A Warrant may be
exercised upon surrender to the Company (at its office address set forth in Section 12
hereof) of the Warrant Certificate or Certificates to be exercised with the
form of election to purchase attached thereto duly filled in and signed, and
upon payment to the Company of the Exercise Price for the number of Warrant
Shares in respect of which such Warrants are then exercised.  Payment of the aggregate Exercise Price shall
be made in cash or by certified or official bank check payable to the order of
the Company or by wire transfer of immediately available funds to an account
designated by the Company, or, with respect to the Series B Warrants, in the
manner provided in the first paragraph of this Section 5.

 

Subject to the provisions
of Section 6 hereof, upon such surrender of Warrant Certificates and
payment of the Exercise Price, the Company shall issue and cause to be
delivered with all reasonable dispatch to or upon the written order of the
Holder and in such name or names as such Holder may designate a certificate or
certificates for the number of full Warrant Shares issuable upon the exercise
of such Warrants (and such other consideration as may be deliverable upon
exercise of such Warrants) together with cash for fractional Warrant Shares as
provided in Section 10.  Such
certificate or certificates shall be deemed to have been issued and the person
so named therein shall be deemed to have become a holder of record of such
Warrant Shares as of the date of the surrender of such Warrant Certificates and
payment of the Exercise Price, irrespective of the date of delivery of such
certificate or certificates for Warrant Shares.

 

Each Warrant shall be
exercisable during the Exercise Period, at the election of the Holder thereof,
either in full or from time to time in part and, in the event that a Warrant is
exercised in respect of fewer than all of the Warrant Shares issuable on such
exercise at any time prior to the date of expiration of the Warrants, a new
certificate evidencing the remaining Warrant or Warrants will be issued and
delivered pursuant to the provisions of this Section and of Section 2
hereof.

 

All Warrant Certificates
surrendered upon exercise of Warrants shall be cancelled and disposed of by the
Company.  The Company shall keep copies
of this Agreement and any notices given or received hereunder available for
inspection by the Holders during normal business hours at its office.

 

SECTION 6.                                Payment of Taxes.  The Company will pay all
documentary stamp taxes and other governmental charges (excluding all foreign,
federal or state income, franchise, property, estate, inheritance, gift or
similar taxes) in connection with the issuance or delivery of the Warrant
Certificates hereunder, as well as all such taxes attributable to the initial
issuance or

 

5

 

delivery of Warrant Shares upon
the exercise of Warrants and payment of the Exercise Price.  The Company shall not, however, be required
to pay any tax that may be payable in respect of any subsequent transfer of the
Warrants or any transfer involved in the issuance and delivery of Warrant
Shares in a name other than that in which the Warrants to which such issuance
relates were registered, and, if any such tax would otherwise be payable by the
Company, no such issuance or delivery shall be made unless and until the person
requesting such issuance has paid to the Company the amount of any such tax, or
it is, established to the reasonable satisfaction of the Company that any such
tax has been paid.

 

SECTION 7.                                Mutilated or Missing Warrant
Certificates.  If any Warrant
Certificate or certificate evidencing Warrant Shares shall be mutilated, lost,
stolen or destroyed, the Company shall issue, in exchange and substitution
therefor and upon cancellation of the mutilated Warrant Certificate or other
certificate, or in lieu of and substitution for the Warrant Certificate or
other certificate lost, stolen or destroyed, a new Warrant Certificate or other
certificate of like tenor and representing an equivalent number of Warrants or
Warrant Shares.

 

SECTION 8.                                Reservation of Warrant Shares.  The Company shall at all times
reserve and keep available, free from preemptive rights, out of the aggregate
of its authorized but unissued Common Stock or its authorized and issued Common
Stock held in its treasury, for the purpose of enabling it to satisfy any
obligation to issue the Warrant Shares upon exercise of the Warrants, the maximum
number of shares of Common Stock which may then be deliverable upon the
exercise of all outstanding Warrants.

 

The Company or, if
appointed, the transfer agent for the Common Stock and each transfer agent for
any shares of the Company’s capital stock issuable upon the exercise of any of
the Warrants (collectively, the “Transfer Agent”) will be irrevocably
authorized and directed at all times to reserve such number of authorized
shares as shall be required for such purpose. 
The Company shall keep a copy of this Agreement on file with the
Transfer Agent.  The Company will supply
the Transfer Agent with duly executed certificates for such purposes and will
provide or otherwise make available all other consideration that may be
deliverable upon exercise of the Warrants. 
The Company will furnish such Transfer Agent a copy of all notices of
adjustments and certificates related thereto, transmitted to each Holder
pursuant to Section 11 hereof.

 

Before taking any action
which would cause an adjustment pursuant to Section 9 hereof to reduce the
Exercise Price below the then par value of the Warrant Shares, the Company
shall take any corporate action which may, in the opinion of its counsel, be
necessary in order that the Company may validly and legally issue fully paid
and nonassessable Warrant Shares at the Exercise Price as so adjusted.

 

The Company covenants
that all the Warrant Shares and other capital stock issued upon exercise of the
Warrants will, upon payment of the Exercise Price therefor and issue, be
validly authorized and issued, fully paid, nonassessable, free of preemptive
rights and free from all taxes, liens, charges and security interests with
respect to the issue thereof.

 

The Company shall from
time to time take all action which may be necessary or appropriate so that the
Common Stock issuable upon conversion of the Warrant Shares

 

6

 

following an exercise of the Warrants, will be
listed on the principal securities exchanges and markets within the United
States of America, if any, on which other shares of the same class of Common
Stock of the Company are then listed.

 

SECTION 9.                                Adjustment of Exercise Price and Number
of Warrant Shares Issuable.  The Exercise Price and the number of shares
of Common Stock issuable upon the exercise of each Warrant (the “Warrant Number”)
are subject to adjustment from time to time upon the occurrence of the events
enumerated in, or as otherwise provided in, this Section 9.  The Warrant Number is initially one.

 

(a)                                  Adjustment
for Change in Capital Stock 

 

If the Company:

 

(1)                                  pays
a dividend or makes a distribution on its Common Stock in shares of its Common
Stock;

 

(2)                                  subdivides or
reclassifies its outstanding shares of Common Stock into a greater number of
shares;

 

(3)                                  combines or
reclassifies its outstanding shares of Common Stock into a smaller number of
shares;

 

(4)                                  makes a distribution
on its Common Stock in shares of its capital stock other than Common Stock; or

 

(5)                                  issues by
reclassification of its Common Stock any shares of its capital stock;

 

then
the Exercise Price in effect immediately prior to such action shall be
proportionately adjusted so that the holder of any Warrant thereafter exercised
may receive the aggregate number and kind of shares of capital stock of the
Company which he or it would have owned immediately following such action if
such Warrant had been exercised immediately prior to such action.

 

The adjustment shall
become effective immediately after the record date in the case of a dividend or
distribution and immediately after the effective date in the case of a
subdivision, combination or reclassification.

 

If after an adjustment a
holder of a Warrant upon exercise of it may receive shares of two or more
classes of capital stock of the Company, the Company shall determine the
allocation of the adjusted Exercise Price between the classes of capital stock.  After such allocation, the exercise privilege
and the Exercise Price of each class of capital stock shall thereafter be
subject to adjustment on terms comparable to those applicable to Common Stock
in this Section.

 

7

 

Such adjustment shall be
made successively whenever any event listed above shall occur.  If the occurrence of any event listed above
results in an adjustment under subsections (b) or (c) below, no further
adjustment shall be made under this subsection (a).

 

(b)                                 Adjustment
for Rights Issue

 

If the Company
distributes any rights, options or warrants (whether or not immediately
exercisable) to all holders of its Common Stock entitling them to purchase
shares of Common Stock at a price per share less than the Current Market Value
per share within 60 days after the record date relating to such distribution,
the Exercise Price shall be adjusted in accordance with the formula:

 

	
   

  	
  O +

  	
  N x P

  	
   

  
	
   

  	
  E‘ = E x 

  	
   

  	
  M

  	
   

  
	
   

  	
  O + N

  
					

 

where:

 

E‘   =                     the adjusted Exercise
Price.

 

E   =                         the then current
Exercise Price.

 

O  =                          the number of shares of
Common Stock outstanding on the record date for any such distribution.

 

N  =                          the number of
additional shares of Common Stock issuable upon exercise of such rights,
options or warrants.

 

P  =                            the exercise price per
share of such rights, options or warrants.

 

M =                          the Current Market
Value per share of Common Stock on the record date for any such distribution.

 

The adjustment shall be
made successively whenever any such rights, options or warrants are issued and
shall become effective immediately after the record date for the determination
of stockholders entitled to receive the rights, options or warrants.  If at the end of the period during which such
rights, options or warrants are exercisable, not all rights, options or
warrants shall have been exercised, the Exercise Price shall be immediately readjusted
to what it would have been if “N” in the above formula had been the number of
shares actually issued.  No adjustment
shall be required under this subsection (b) if at the time of such
distribution the Company makes the same distribution to Holders of Warrants as
it makes to holders of shares of Common Stock pro rata based on the number of
shares of Common Stock for which such Warrants are exercisable (whether or not
currently exercisable).  No adjustment
shall be made pursuant to this subsection (b) which shall be have the
effect of decreasing the number of Warrant Shares purchasable upon exercise of
each Warrant.

 

8

 

(c)                                  Adjustment
for Other Distributions

 

If the Company
distributes to all holders of its Common Stock (i) any evidences of
indebtedness of the Company or any of its subsidiaries, (ii) any cash or other assets
of the Company or any of its subsidiaries, (iii) shares of its capital stock or
any other properties or securities or (iv) any rights, options or warrants to
acquire any of the foregoing or to acquire any other securities of the Company
(the items described in the foregoing clauses (i)-(iv) being collectively
referred to as the “Consideration”), the Exercise Price shall be
adjusted in accordance with the formula:

 

	
  E‘ = E x

  	
   

  	
  M-F

  	
   

  
	
   

  	
  M

  	
   

  

 

where:

 

E‘  =                        the adjusted Exercise
Price.

 

E  =                            the then current
Exercise Price.

 

M  =                       the Current Market
Value per share of Common Stock on the record date mentioned below.

 

F  =                            the fair market value
on the record date mentioned below of the Consideration distributable to the
holder of one share of Common Stock.

 

The adjustment shall be
made successively whenever any such distribution is made and shall become
effective immediately after the record date for the determination of
stockholders entitled to receive the distribution.  If an adjustment is made pursuant to this subsection (c)
as a result of the issuance of rights, options or warrants and at the end of
the period during which any such rights, options or warrants are exercisable,
not all such rights, options or warrants shall have been exercised, the
Exercise Price shall be immediately readjusted as if “F” in the above formula
was the fair market value on the record date of the indebtedness or assets
actually distributed upon exercise of such rights, options or warrants divided
by the number of shares of Common Stock outstanding on the record date.  No adjustment shall be required under this
subsection (c) if at the time of such distribution the Company makes the
same distribution to Holders of Warrants as it makes to holders of shares of Common
Stock pro rata based on the number of shares of Common Stock for which such
Warrants are exercisable (weather or not currently exercisable).  No adjustment shall be made pursuant to this
subsection (c) which shall be have the effect of decreasing the number of
Warrant Shares purchasable upon exercise of each Warrant.

 

This subsection does
not apply to any distribution referred to in subsection (a) of this Section 9
or to rights, options or warrants referred to in subsection (b) of this Section 9.

 

(d)                                 Current
Market Value

 

“Current Market Value”
per share of Common Stock or of any other security (herein collectively
referred to as a “Security”) at any date shall be:

 

9

 

(1)                                  if
the Security is registered under the Exchange Act, the average of the daily
Market Prices for each business day during the period commencing 15 business
days before such date and ending on the date one day prior to such date or, if
the Security has been registered under the Exchange Act for less than 15
consecutive business days before such date, then the average of the daily
Market Prices for all of the business days before such date for which daily
Market Prices are available.  If the
Market Price is not determinable for at least 10 business days in such period,
the Current Market Value of the Security shall be determined as if the Security
was not registered under the Exchange Act; or

 

(2)                                  if
the Security is not registered under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), (i) the value of the Security
determined in good faith by the Board of Directors of the Company and certified
in a board resolution, based on the most recently completed arm’s length
transaction between the Company and a person other than an Affiliate of the
Company in which such determination is necessary and the closing of which
occurs on such date or shall have occurred within the six months preceding such
date, (ii) if no such transaction shall have occurred on such date or
within such six-month period, the value of the Security most recently
determined as of a date within the six months preceding such date by an Independent
Financial Expert or (iii) if neither clause (i) nor (ii) is applicable,
the value of the Security determined as of such date by an Independent
Financial Expert.

 

The “Market Price”
for any Security on each business day means:  (A) if such Security is listed or
admitted to trading on any securities exchange, the closing price, regular way,
on such day on the principal exchange on which such Security is traded, or if
no sale takes place on such day, the average of the closing bid and asked
prices on such day, (B) if such Security is not then listed or admitted to
trading on any securities exchange, the last reported sale price on such day,
or if there is no such last reported sale price on such day, the average of the
closing bid and the asked prices on such day, as reported by a reputable
quotation source designated by the Company, or (C) if neither clause (A)
nor (B) is applicable, the average of the reported high bid and low asked
prices on such day, as reported by a reputable quotation service, or a
newspaper of general circulation in the Borough of Manhattan, City of New York,
customarily published on each business day, designated by the Company.  If there are no such prices on a business
day, then the Market Price shall not be determinable for such business day.

 

“Independent Financial
Expert” shall mean a nationally recognized investment banking firm
designated by the Company and reasonably acceptable to the Holders of a
majority of the Warrants (i) that does not (and whose directors, officers,
employees and Affiliates do not) have a direct or indirect material financial
interest in the Company, (ii) that has not been, and, at the time it is
called upon to serve as an Independent Financial Expert under this Agreement is
not (and none of whose directors, officers, employees or Affiliates is) a
promoter, director or officer of the Company, (iii) that has not been
retained by the Company or any Holder or Affiliate of a Holder for any purpose,
other than to perform an equity valuation, within the preceding twelve months,
and (iv) that, in the reasonable judgment of the

 

10

 

Board of Directors
of the Company, is otherwise qualified to serve as an independent financial
advisor.  Any such person may receive
customary compensation and indemnification by the Company for opinions or
services it provides as an Independent Financial Expert.

 

“Affiliate” shall
mean, with respect to any person, any other person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such person.  For the purposes of this
definition, “control,” when used with respect to any person, means the
power to direct the management and policies of such person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise; and the terms “controlling” and “controlled” have meanings correlative
to the foregoing.

 

(e)                                  When
De Minimis Adjustment May Be Deferred

 

No adjustment in the
Exercise Price need be made unless the adjustment would require an increase or
decrease of at least 1% in the Exercise Price. 
No adjustment in the Warrant Number need be made unless the adjustment
would require an increase or decrease of at least 0.5% in the Warrant Number.  Any adjustments that are not made shall be
carried forward and taken into account in any subsequent adjustment, provided
that no such adjustment shall be deferred beyond the date on which a Warrant is
exercised.

 

All calculations under
this Section 9 shall be made to the nearest 1/1000th of a share.

 

(f)                                    When
No Adjustment Required

 

If an adjustment is made
upon the establishment of a record date or issuance date for a distribution or
issuance subject to subsections (a), (b) or (c) hereof and such distribution or
issuance is subsequently cancelled, the Warrant Number then in effect shall be
readjusted, effective as of the date when the Board of Directors determines to
cancel such distribution, to that which would have been in effect if such
record date had not been fixed.

 

To the extent the
Warrants become convertible into cash, no adjustment
need be made thereafter as to the amount of cash into which such Warrants are
exercisable.  Interest will not accrue on
the cash.

 

(g)                                 Notice
of Adjustment

 

Whenever the Exercise
Price or the Warrant Number is adjusted, the Company shall provide the notices
required by Section 11 hereof.

 

(h)                                 When
Issuance or Payment May Be Deferred

 

In any case in which this
Section 9 shall require that an adjustment in the Exercise Price and
Warrant Number be made effective as of a record date for a specified event, the
Company may elect to defer until the occurrence of such event (i) issuing to
the Holder of any Warrant exercised after such record date the Warrant Shares
and other capital stock of the Company, if any, issuable upon such exercise
over and above the Warrant Shares and other capital stock of the Company, if any,
issuable upon such exercise on the basis of the Warrant

 

11

 

Number prior to
such adjustment, and (ii) paying to such Holder any amount in cash in lieu
of a fractional share pursuant to Section 10; provided,
however, that the Company shall deliver
to such Holder a due bill or other appropriate instrument evidencing such
Holder’s right to receive such additional Warrant Shares, other capital stock
and cash upon the occurrence of the event requiring such adjustment.

 

(i)                                     Reorganizations

 

In case of any capital
reorganization, other than in the cases referred to in Sections 9(a), (b)
or (c) hereof, or the consolidation or merger of the Company with or into
another corporation (other than a merger or consolidation which does not result
in any reclassification of the outstanding shares of Common Stock into shares
of other stock or other securities or property) (collectively such actions
being hereinafter referred to as “Reorganizations”), there shall
thereafter be deliverable upon exercise of any Warrant (in lieu of the number
of shares of Common Stock theretofore deliverable) the number of shares of
stock or other securities or property to which a holder of the number of shares
of Common Stock that would otherwise have been deliverable upon the exercise of
such Warrant would have been entitled upon such Reorganization if such Warrant
had been exercised in full immediately prior to such Reorganization.  In case of any Reorganization, appropriate
adjustment, as determined in good faith by the Board of Directors of the
Company, whose determination shall be described in a duly adopted resolution
certified by the Company’s Secretary or Assistant Secretary, shall be made in
the application of the provisions herein set forth with respect to the rights
and interests of Holders so that the provisions set forth herein shall
thereafter be applicable, as nearly as possible, in relation to any shares or
other property thereafter deliverable upon exercise of Warrants.

 

The Company shall not
effect any such Reorganization unless prior to or simultaneously with the
consummation thereof the successor corporation (if other than the Company) resulting
from such Reorganization or other appropriate corporation or entity shall
expressly assume, by a supplemental Warrant Agreement or other acknowledgement
executed and delivered to the Holder(s), the obligation to deliver to each such
Holder such shares of stock, securities or assets as, in accordance with the
foregoing provisions, such Holder may be entitled to purchase, and all other
obligations and liabilities under this Agreement.

 

(j)                                     Adjustment
in Number of Shares

 

Upon each adjustment of
the Exercise Price pursuant to this Section 9, each Warrant outstanding
prior to the making of the adjustment in the Exercise Price shall thereafter
evidence the right to receive upon payment of the adjusted Exercise Price that
number of shares of Common Stock (calculated to the nearest thousandth)
obtained from the following formula:

 

	
  N‘ = N x

  	
  E

  	
   

  
	
   

  	
  E‘

  	
   

  

 

where:

 

12

 

N‘  =                      the adjustment number
of Warrant Shares issuable upon exercise of a Warrant by payment of the
adjusted Exercise Price.

 

N   =                       the number of Warrant
Shares previously issuable upon exercise of a Warrant by payment of the
Exercise Price prior to adjustment.

 

E‘  =                        the adjusted Exercise
Price.

 

E   =                         the Exercise Price
prior to adjustment.

 

(k)                                  Form
of Warrants

 

Irrespective of any
adjustments in the Exercise Price or the number or kind of shares purchasable
upon the exercise of the Warrants, Warrants theretofore or thereafter issued
may continue to express the same price and number and kind of shares as are
stated in the Warrants initially issuable pursuant to this Agreement.

 

(l)                                     Adjustments
in Other Securities

 

If as a result of any
event or for any other reason, any adjustment is made which increases the
number of shares of Common Stock issuable upon conversion, exercise or exchange
of, or in the conversion or exercise price or exchange ratio applicable to, any
outstanding securities of the Company that are convertible into, or exercisable
or exchangeable for, Common Stock of the Company, then a corresponding
adjustment shall be made hereunder to increase the number of shares of Common
Stock issuable upon exercise of the Warrants, but only to the extent that no
such adjustment has been made pursuant to Sections 9(a), (b) or (c) hereof with
respect to such event or for such other reason.

 

(m)                               Tender
Offers; Exchange Offers

 

In the event that the
Company or any subsidiary of the Company shall purchase shares of Common Stock
pursuant to a tender offer or an exchange offer for a price per share of Common
Stock that is greater than the then Current Market Value per share of shares of
Common Stock in effect at the end of the trading day immediately following the
day on which such tender offer or exchange offer expires, then the Company, or
such subsidiary of the Company, shall, within (10) business days of the expiry
of such tender offer or exchange offer, offer to purchase the Warrants for
comparable consideration per share of Common Stock based on the number of
shares of Common Stock which the Holders of such Warrants would receive upon
exercise of such Warrants (the “Offer”) (such amount less the Exercise
Price in respect of such share, the “Per Share Consideration”); provided, however, if a
tender offer is made for only a portion of the outstanding shares of Common
Stock, then such offer shall be made for such shares of Common Stock issuable
upon exercise of the Warrants in the same pro rata proportion; provided, further, that
the Company shall not be required to make such an Offer if the Per Share
Consideration is an amount less than the then-existing Exercise Price per share.

 

The Offer shall remain open
for a period of twenty (20) business days following its commencement and no
longer, except to the extent that a longer period is required by applicable law
(the “Offer Period”).  No later
than five (5) business days after the termination of

 

13

 

the Offer Period (the “Purchase Date”),
the Company shall purchase such Warrants for the applicable Per Share
Consideration.

 

(n)                                 Other
Events

 

If any event shall occur
as to which the other provisions of this Section 9 are not strictly
applicable but the failure to make any adjustment would have the effect of
depriving holders of the benefit of all or a portion of the exercise rights in
respect of any Warrant in accordance with the essential intent and principles
of this Section 9, then, in each such case, the Company shall appoint an
Independent Financial Expert, which shall give its opinion upon the adjustment,
if any, on a basis consistent with the essential intent and principles
established in this Section 9 necessary to preserve, without dilution,
such exercise rights.  Upon receipt of
such opinion, the Company will promptly mail a copy thereof to the Holders and
shall make the adjustments described therein.

 

(o)                                 Miscellaneous

 

For purpose of this Section 9
the term “shares of Common Stock” shall mean (i) shares of any
class of stock designated as Common Stock of the Company at the date of this
Agreement, and (ii) shares of any other class of stock resulting from
successive changes or reclassification of such shares consisting solely of
changes in par value, or from par value to no par value, or from no par value
to par value.  In the event that at any
time, as a result of an adjustment made pursuant to this Section 9, the
holders of Warrants shall become entitled to purchase any securities of the
Company other than, or in addition to, shares of Common Stock, thereafter the
number or amount of such other securities so purchasable upon exercise of each
Warrant shall be subject to adjustment from time to time in a manner and on
terms as nearly equivalent as practicable to the provisions with respect to the
Warrant Shares contained in subsections (a) through (n) of this Section 9,
inclusive, and the provisions of Sections 5, 6, 8 and 10 with respect to the
Warrant Shares or the Common Stock shall apply on like terms to any such other
securities.

 

SECTION 10.                          Fractional Interests.  The Company shall not be required
to issue fractional Warrant Shares on the exercise of the Warrants.  If more than one Warrant shall be presented
for exercise in full at the same time by the same holder, the number of full
Warrant Shares which shall be issuable upon the exercise thereof shall be
computed on the basis of the aggregate number of the Warrant Shares purchasable
on exercise of the Warrants so presented. 
If any fraction of a Warrant Share would, except for the provisions of
this Section 10, be issuable on the exercise of any Warrants (or specified
portion thereof), the Company shall pay an amount in cash equal to the fair
market value of the Warrant Share so issuable (as determined in good faith by
the Board of Directors), multiplied by such fraction.

 

SECTION 11.                          Notices to Warrant Holders.  Upon any adjustment pursuant to Section 9
hereof, the Company shall promptly thereafter (i) cause to be filed with
the Company a certificate of an officer of the Company setting forth the
Warrant Number and Exercise Price after such adjustment and setting forth in
reasonable detail the method of calculation and the facts upon which such calculations
are based, and (ii) cause to be given to each of the registered Holders of
the Warrant Certificates at his or its address appearing on the Warrant
register written

 

14

 

notice of such adjustments by first class mail, postage prepaid.  Where appropriate, such notice may be given
in advance and included as a part of the notice required to be mailed under the
other provisions of this Section 11.

 

In case:

 

(a)                                  the
Company shall authorize the issuance to all holders of shares of Common Stock
of rights, options or warrants to subscribe for or purchase shares of Common
Stock or of any other subscription rights or warrants; or

 

(b)                                 the Company shall authorize the
distribution to all holders of shares of Common Stock of assets, including
cash, evidences of its indebtedness, or other securities; or

 

(c)                                  of
any consolidation or merger to which the Company is a party and for which
approval of any shareholders of the Company is required, or of the conveyance
or transfer of the properties and assets of the Company substantially as an
entirety, or of any reclassification or change of Common Stock issuable upon
exercise of the Warrants (other than a change in par value, or from par value
to no par value, or from no par value to par value, or as a result of a
subdivision or combination), or a tender offer or exchange offer for shares of
Common Stock; or

 

(d)                                 of
the voluntary or involuntary dissolution, liquidation or winding up of the
Company; or

 

(e)                                  the Company proposes to take any
action that would require an adjustment to the Warrant Number or the Exercise
Price pursuant to Section 9 hereof;

 

then
the Company shall cause to be given to each of the registered Holders of the
Warrant Certificates at his or its address appearing on the Warrant register,
at least 20 days prior to the applicable record date hereinafter specified, or
20 days prior to the date of the event in the case of events for which there is
no record date, by first-class mail, postage prepaid, a written notice stating
(i) the date as of which the holders of record of shares of Common Stock to be
entitled to receive any such rights, options, warrants or distribution are to
be determined, or (ii) the initial expiration date set forth in any tender
offer or exchange offer for shares of Common Stock, or (iii) the date on which
any such consolidation, merger, conveyance, transfer, dissolution, liquidation
or winding up is expected to become effective or consummated, and the date as
of which it is expected that holders of record of shares of Common Stock shall
be entitled to exchange such shares for securities or other property, if any,
deliverable upon such reclassification, consolidation, merger, conveyance,
transfer, dissolution, liquidation or winding up.  The failure to give the notice required by
this Section 11 or any defect therein shall not affect the legality or validity
of any distribution, right, option, warrant, consolidation, merger, conveyance,
transfer, dissolution, liquidation or winding up, or the vote upon any action.

 

Nothing contained in this
Agreement or in any Warrant Certificate shall be construed as conferring upon
the Holders of Warrants (prior to the exercise of such Warrants)

 

15

 

the right to vote
or to consent or to receive notice as shareholder in respect of the meetings of
shareholders or the election of Directors of the Company or any other matter,
or any rights whatsoever as shareholders of the Company.

 

SECTION 12.                          Notices to the Company and Warrant
Holders.  All notices and other
communications provided for or permitted hereunder shall be made by hand
delivery, first-class mail, telex, telecopier, or
overnight air courier guaranteeing next day delivery:

 

(a)                                  if
to the Holders at the addresses provided on the signature pages hereto or
otherwise reflected in the books and records of the Company from time to time;
and

 

(b)                                 if to the Company, at 200 Milik
Street, Carteret, New Jersey 07008, Attention:  Marc A. Strassler.

 

All such notices and communications shall be deemed to
have been duly given:  at the time
delivered by hand, if personally delivered; five (5) business days after being
deposited in the mail, postage prepaid, if mailed; when answered back if
telexed; when receipt acknowledged, if telecopied; and the next business day
after timely delivery to the courier, if sent by overnight air courier
guaranteeing next day delivery.  The
parties may change the addresses to which notices are to be given by giving
five days’ prior notice of such change in accordance herewith.

 

SECTION 13.                          Supplements and Amendments.  The Company may from time to time
supplement or amend this Agreement without the approval of any Holders of
Warrant Certificates in order to cure any ambiguity or to correct or supplement
any provision contained herein which may be defective or inconsistent with any
other provision herein, or to make any other provisions in regard to matters or
questions arising hereunder which the Company may deem necessary or desirable
and which shall not in any way adversely affect the interests of the Holders of
Warrant Certificates.  An amendment or
supplement to this Warrant Agreement that has an adverse effect on Holders of
Warrants shall require the written consent of the Holders of a majority of the
then-outstanding Warrants excluding Warrants held by the Company.

 

SECTION 14.                          Successors and Assigns.  All the covenants and provisions
of this Agreement by or for the benefit of the Company shall bind and inure to
the benefit of its respective successors and assigns hereunder.

 

SECTION 15.                          Termination.  This Agreement shall terminate
when all Warrants have been exercised or have expired pursuant to this
Agreement.

 

SECTION 16.                          No Rights or Liabilities as Stockholder.  Nothing
contained herein shall be construed as conferring upon any Holder any rights as
a stockholder of the Company or as imposing any obligation on such holder to
purchase any securities or as imposing any liabilities on such holder as a
stockholder of the Company, whether such obligation or liabilities are asserted
by the Company or by creditors of the Company.

 

SECTION 17.                          Governing Law.  This Agreement and each Warrant
Certificate issued hereunder shall be deemed to be a contract made under the
laws of the State of New York and for all purposes shall be construed in
accordance with the internal laws of said State.

 

16

 

SECTION 18.                          Benefits of This Agreement.  Nothing in this Agreement shall be
construed to give to any person or corporation other than the Company and the
registered Holders of the Warrant Certificates any legal or equitable right,
remedy or claim under this Agreement; but this Agreement shall be for the sole
and exclusive benefit of the Company and the registered Holders of the Warrant
Certificates.

 

SECTION 19.                          Construction; Interpretation.  This Agreement shall not be
construed for or against any party by reason of the authorship or alleged
authorship of any provision hereof or by reason of the status of the respective
parties.  This Agreement shall be
construed reasonably to carry out its intent without presumption against or in
favor of any party.  The natural persons
executing this Agreement on behalf of each party have the full right, power and
authority to do and affirm the foregoing warranty on behalf of each party and
on their own behalf.  The captions on
sections are provided for purposes of convenience and are not intended to
limit, define the scope of or aid in interpretation of any of the provisions
hereof.  All pronouns and singular or
plural references as used herein shall be deemed to have interchangeably (where
the sense of the sentence requires) a masculine, feminine or neuter, and/or
singular or plural meaning, as the case may be.

 

SECTION 20.                          Counterparts.  This Agreement may be executed in
any number of counterparts and each of such counterparts shall for all purposes
be deemed to be an original, and all such counterparts shall together
constitute but one and the same instrument.

 

17

 

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

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  PATHMARK STORES,
  INC., a Delaware

  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frank
  Vitrano

  	
   

  
	
   

  	
  Name: Frank
  Vitrano

  
	
   

  	
  Title:   President
  and Chief Financial Officer

  

 

 

S-1

Warrant Agreement

 

 

 

	
   

  	
  INVESTORS:

  
	
   

  	
   

  
	
   

  	
  YUCAIPA
  CORPORATE INITIATIVES FUND I,

  L.P., a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Yucaipa
  Corporate Initiatives Fund I, LLC

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Robert P. Bermingham

  	
   

  
	
   

  	
  By:    Robert
  P. Bermingham

  
	
   

  	
  Title:  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  YUCAIPA AMERICAN
  ALLIANCE

  (PARALLEL) FUND I, L.P., a Delaware limited

  partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Yucaipa American
  Alliance Fund I, LLC

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Robert P. Bermingham

  	
   

  
	
   

  	
  By:    Robert
  P. Bermingham

  
	
   

  	
  Title:  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  YUCAIPA AMERICAN
  ALLIANCE FUND I,

  L.P., a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Yucaipa American
  Alliance Fund I, LLC

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Robert P. Bermingham

  	
   

  
	
   

  	
  By:    Robert
  P. Bermingham

  
	
   

  	
  Title:  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices to the Investors:

  
	
   

  	
   

  
	
   

  	
  9130 W. Sunset
  Boulevard

  
	
   

  	
  Los Angeles,
  California 90069

  
	
   

  	
  Attention:
  Robert P. Bermingham

  
				

 

S-2

Warrant Agreement

 

 

EXHIBIT A

 

[Form of Series A
Warrant Certificate]

 

THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND
NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION
THEREOF.  SUCH SECURITIES GENERALLY MAY
NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR PURSUANT TO
AN APPLICABLE EXEMPTION FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF SAID ACT.

 

THE
SECURITIES EVIDENCED HEREBY ARE SUBJECT TO CERTAIN RESTRICTIONS UNDER THE TERMS
OF THE STOCKHOLDERS’ AGREEMENT DATED AS OF JUNE 9, 2005, AS AMENDED
FROM TIME TO TIME, BETWEEN THE ISSUER AND THE HOLDER HEREOF AND MAY NOT BE
OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT IN ACCORDANCE WITH
THE TERMS OF THAT AGREEMENT.

 

	
  No.

  	
   

  	
   

  	
   

  	
  Series A Warrants

  

 

Series A Warrant Certificate

 

PATHMARK STORES, INC.

 

This Warrant Certificate
certifies that                               ,
or registered assigns, is the registered holder of the number of Warrants (the “Warrants”)
set forth above to purchase Common Stock, $.01 par value (the “Common Stock”), of
Pathmark Stores, Inc., a Delaware corporation (the “Company”).  Each Warrant entitles the holder upon
exercise to receive from the Company one fully paid and nonassessable share of
Common Stock (a “Warrant Share”) at the initial exercise price (the “Exercise
Price”) of $8.50 payable in lawful money of the United States of America,
upon surrender of this Warrant Certificate and payment of the Exercise Price at
the office of the Company designated for such purpose, but only subject to the
conditions set forth herein and in the Warrant Agreement referred to
hereinafter.  The Warrants may be
exercised only during the Series A Exercise Period (as
defined in the Warrant Agreement).  The Exercise
Price and number of Warrant Shares issuable upon exercise of the Warrants are
subject to adjustment upon the occurrence of certain events, as set forth in
the Warrant Agreement.

 

The Warrants evidenced by
this Warrant Certificate are part of a duly authorized issue of Series A Warrants,
and are issued or to be issued pursuant to a Warrant Agreement dated as of June 9,
2005 (the “Warrant Agreement”), duly executed and delivered by the
Company, which Warrant Agreement is hereby incorporated by reference in and
made a part of this instrument and is hereby referred to for a description of
the rights, limitation of rights,

 

A-1

 

obligations,
duties and immunities thereunder of the Company and the holders (the words “holders”
or “holder” meaning the registered holders or registered holder) of the
Warrants.  A copy of the Warrant
Agreement may be obtained by the holder hereof upon written request to the
Company.

 

The holder of Warrants
evidenced by this Warrant Certificate may exercise such Warrants during the Series
A Exercise Period under and pursuant to the terms and conditions of the Warrant
Agreement by surrendering this Warrant Certificate, with the form of election
to purchase set forth hereon (and by this reference made a part hereof)
properly completed and executed, together with payment of the Exercise Price in
cash or by certified or bank check at the office of the Company designated for
such purpose or by wire transfer of immediately available funds to an account
designated by the Company.  In the event
that upon any exercise of warrants evidenced hereby the number of Warrants
exercised shall be less than the total number of Warrants evidenced hereby,
there shall be issued by the Company to the holder hereof or his or its
registered assignee a new Warrant Certificate evidencing the number of Warrants
not exercised.

 

The Warrant Agreement
provides that upon the occurrence of certain events the number of Warrants and
the Exercise Price set forth on the face hereof may, subject to certain
conditions, be adjusted.  No fractions of
a share of Common Stock will be issued upon the exercise of any Warrant, but
the Company will pay the cash value thereof determined as provided in the
Warrant Agreement.

 

The holders of the
Warrants are entitled to certain registration rights with respect to the Common
Stock issuable upon the exercise thereof. 
Said registration rights are set forth in a Registration Rights
Agreement dated as of June 9, 2005, by and among the Company, and certain
stockholders of the Company named therein (the “Registration Rights
Agreement”).  By acceptance of this Warrant
Certificate, the holder hereof agrees that upon exercise of some or all of the
Warrants evidenced hereby, he or it will be bound by the Registration Rights
Agreement as a holder of Registrable Securities thereunder.  A copy of the Registration Rights Agreement
may be obtained by the holder hereof upon written request to the Company.

 

Warrant Certificates,
when surrendered at the office of the Company by the registered holder thereof
in person or by legal representative or attorney duly authorized in writing,
may be exchanged, in the manner and subject to the limitations provided in the
Warrant Agreement, but without payment of any service charge, for another
Warrant Certificate or Warrant Certificates of like tenor evidencing in the
aggregate a like number of Warrants.

 

Subject to the terms and
conditions of the Warrant Agreement, upon due presentation for registration of
transfer of this Warrant Certificate at the office of the Company a new Warrant
Certificate or Warrant Certificates of like tenor and evidencing in the
aggregate a like number of Warrants shall be issued to the transferee(s) in
exchange for this Warrant Certificate, subject to the limitations provided in
the Warrant Agreement, without charge except for any tax or other governmental
charge imposed in connection therewith.

 

A-2

 

The Company may deem and
treat the registered holder(s) thereof as the absolute owner(s) of this Warrant
Certificate (notwithstanding any notation of ownership or other writing hereon
made by anyone), for the purpose of any exercise hereof, of any distribution to
the holder(s) hereof, and for all other purposes, and the Company shall not be
affected by any notice to the contrary.  Neither
the Warrants nor this Warrant Certificate entitles any holder hereof to any
rights of a stockholder of the Company.

 

IN WITNESS WHEREOF, Pathmark
Stores, Inc. has caused this Warrant Certificate to be signed by its Chairman
of the Board, Chief Executive Officer, President or Vice President and by its
Secretary or Assistant Secretary and has caused its corporate seal to be
affixed hereunto or imprinted hereon.

 

	
  Dated:                        ,
  2005

  	
  PATHMARK STORES,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

A-3

 

FORM OF ELECTION TO PURCHASE

 

(To Be Executed Upon Exercise Of Warrant)

 

The undersigned holder
hereby represents that he or it is the registered holder of this Warrant
Certificate, and hereby irrevocably elects to exercise the right, represented
by this Warrant Certificate, to receive                     shares
of Common Stock, $.01 par value, of Pathmark Stores, Inc. and herewith tenders
payment for such shares to the order of Pathmark Stores, Inc. the amount of $              in
accordance with the terms hereof.  The
undersigned requests that a certificate for such shares be registered in the
name of the undersigned or nominee hereinafter set forth,
and further that such certificate be delivered to the undersigned at the
address hereinafter set forth or to such other person or entity as is
hereinafter set forth.  If said number of
shares is less than all of the shares of Common Stock purchasable hereunder,
the undersigned requests that a new Warrant Certificate representing the
remaining balance of such shares be registered in the name of the undersigned
or nominee hereinafter set forth, and further that such certificate be
delivered to the undersigned at the address hereinafter set forth or to such
other person or entity as is hereinafter set forth.

 

	
   

  	
  Certificate to be registered as follows:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  
	
   

  	
  Social Security
  or

  	
   

  
	
   

  	
  Taxpayer
  Identification No.:

  	
   

  	
   

  
	
   

  
	
   

  	
  Certificate to be delivered as follows:

  	
   

  
	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  	
  Signature:

  	
   

  	
   

  
										

 

 

A-4

 

FORM OF CERTIFICATE OF
TRANSFER

 

Pathmark Stores, Inc.

200 Milik Street

Carteret, New Jersey 07008

Attention:  Marc
A. Strassler

 

Re:                               Series A Warrants (the “Warrants”)

 

(CUSIP                )

 

Reference is hereby made
to the Warrant Agreement, dated as of June 9, 2005 (the “Warrant
Agreement”), relating to Series A Warrants and
Series B Warrants of Pathmark Stores, Inc. (the “Company”).  Capitalized terms used but not defined herein
shall have the meanings given to them in the Warrant Agreement.

 

                              ,
(the “Transferor”) owns and proposes to transfer the Warrant[s] or
interest in such Warrant[s] specified in Annex A hereto (the “Transfer”),
to                                          (the
“Transferee”), as further specified in Annex A hereto.  In connection with the Transfer, the
Transferor hereby certifies that:

 

[CHECK ALL THAT APPLY]

 

1.                                       o  CHECK IF
TRANSFEREE WILL TAKE DELIVERY OF A WARRANT PURSUANT TO RULE 144A.  The Transfer is being effected pursuant to
and in accordance with Rule 144A under the United States Securities Act of
1933, as amended (the “Securities Act”), and, accordingly, the
Transferor hereby further certifies that the Warrant is being transferred to a
person that the Transferor reasonably believed and believes is purchasing the
Warrant for its own account, or for one or more accounts with respect to which
such person exercises sole investment discretion, and such person and each such
account is a “qualified institutional buyer” within the meaning of
Rule 144A in a transaction meeting the requirements of Rule 144A and
such Transfer is in compliance with any applicable blue sky securities laws of
any state of the United States.  Upon
consummation of the proposed Transfer in accordance with the terms of the
Warrant Agreement, the transferred Warrant will be subject to the restrictions
on transfer enumerated in the private placement legend printed on the Warrant as
contemplated by the Warrant Agreement.

 

2.                                       o  CHECK IF
TRANSFEREE WILL TAKE DELIVERY OF A WARRANT PURSUANT TO REGULATION S.  The Transfer is being effected pursuant to
and in accordance with Rule 903 or Rule 904 under the Securities Act
and, accordingly, the Transferor hereby further certifies that (i) the
Transfer is not being made to a person inside the United States and (x) at
the time the buy order was originated, the Transferee was outside the United
States or such Transferor and any person acting on its behalf reasonably
believed and believes that the Transferee was outside the United States or
(y) the transaction was executed in, on or through the facilities of a
designated offshore securities market and neither such Transferor nor any person
acting on its behalf knows that the transaction was prearranged with a buyer inside
the United States, (ii) no directed selling efforts have been made in
contravention of the requirements of Rule 903(b) or Rule 904(b) of
Regulation S under the Securities Act, (iii) the

 

A-5

 

transaction is not part of a plan or scheme to evade
the registration requirements of the Securities Act and (iv) if the
proposed transfer is being made prior to the expiration of the Restricted Period,
the transfer is not being made to a person inside the United States or for the
account or benefit of a person inside the United States.  Upon consummation of the proposed transfer in
accordance with the terms of the Warrant Agreement, the transferred Warrant
will be subject to the restrictions on Transfer enumerated in the private
placement legend printed on the Warrant as contemplated by the Warrant
Agreement.

 

3.                                       o  CHECK AND
COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF A WARRANT PURSUANT TO ANY PROVISION
OF THE SECURITIES ACT OTHER THAN RULE 144A OR REGULATION S.  The Transfer is being effected in compliance
with the transfer restrictions applicable to beneficial interests in restricted
Warrants and pursuant to and in accordance with the Securities Act and any
applicable blue sky securities laws of any state of the United States, and
accordingly the Transferor hereby further certifies that (check one):

 

(a)          o  such Transfer is
being effected pursuant to and in accordance with Rule 144 under the Securities
Act;

 

or

 

(b)         o  such Transfer is
being effected to the Company or a subsidiary thereof;

 

or

 

(c)          o  such Transfer is
being effected pursuant to an effective registration statement under the
Securities Act and in compliance with the prospectus delivery requirements of
the Securities Act;

 

or

 

(d)         o  such Transfer is being effected to an “accredited
investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities
Act, who is not also a “qualified institutional buyer”) and pursuant to an exemption
from the registration requirements of the Securities Act other than
Rule 144A, Rule 144 or Rule 904, and the Transferor hereby
further certifies that it has not engaged in any general solicitation within
the meaning of Regulation D under the Securities Act and the Transfer
complies with the transfer restrictions applicable to restricted Warrants and
the requirements of the exemption claimed, which certification is supported by,
if the Company so requests, an opinion of counsel provided by the Transferor or
the Transferee (a copy of which the Transferor has attached to this
certification), to the effect that such Transfer is in compliance with the
Securities Act.  Upon consummation of the
proposed transfer in accordance with the terms of the Warrant Agreement, the
transferred Warrant will be subject to the restrictions on transfer enumerated
in the private placement legend printed on the Warrants as contemplated by the
Warrant Agreement.

 

A-6

 

4.                                       o  CHECK IF
TRANSFEREE WILL TAKE DELIVERY OF AN UNRESTRICTED WARRANT.

 

(a)          o  CHECK IF TRANSFER IS PURSUANT TO
RULE 144.  (i) The Transfer is
being effected pursuant to and in accordance with Rule 144 under the
Securities Act and in compliance with the transfer restrictions contained in
the Warrant Agreement and any applicable blue sky securities laws of any state
of the United States and (ii) the restrictions on transfer contained in
the Warrant Agreement and the private placement legend are not required in order
to maintain compliance with the Securities Act. 
Upon consummation of the proposed Transfer in accordance with the terms
of the Warrant Agreement, the transferred Warrant will no longer be subject to
the restrictions on transfer enumerated in the private placement legend printed
on the restricted Warrants as contemplated by the Warrant Agreement.

 

(b)         o  CHECK IF TRANSFER IS PURSUANT TO REGULATION
S.  (i) The Transfer is being
effected pursuant to and in accordance with Rule 903 or Rule 904
under the Securities Act and in compliance with the transfer restrictions
contained in the Warrant Agreement and any applicable blue sky securities laws
of any state of the United States and (ii) the restrictions on transfer
contained in the Warrant Agreement and the private placement legend are not
required in order to maintain compliance with the Securities Act.  Upon consummation of the proposed Transfer in
accordance with the terms of the Warrant Agreement, the transferred Warrant
will no longer be subject to the restrictions on transfer enumerated in the
private placement legend printed on the restricted Warrants as contemplated by
the Warrant Agreement.

 

(c)          o  CHECK IF TRANSFER IS PURSUANT TO OTHER
EXEMPTION.  (i) The Transfer is
being effected pursuant to and in compliance with an exemption from the
registration requirements of the Securities Act other than Rule 144,
Rule 903 or Rule 904 and in compliance with the transfer restrictions
contained in the Warrant Agreement and any applicable blue sky securities laws
of any State of the United States and (ii) the restrictions on transfer
contained in the Warrant Agreement and the private placement legend are not
required in order to maintain compliance with the Securities Act.  Upon consummation of the proposed Transfer in
accordance with the terms of the Warrant Agreement, the transferred Warrant
will not be subject to the restrictions on transfer enumerated in the private
placement legend printed on the restricted Warrants as contemplated by the
Warrant Agreement.

 

A-7

 

This
certificate and the statements contained herein are made for your benefit and
the benefit of the Company.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  [Insert Name of
  Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
						

 

A-8

 

EXHIBIT B

 

[Form of Series B Warrant
Certificate]

 

THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND
NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION
THEREOF.  SUCH SECURITIES GENERALLY MAY
NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR PURSUANT TO
AN APPLICABLE EXEMPTION FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS
OF SAID ACT.

 

THE
SECURITIES EVIDENCED HEREBY ARE SUBJECT TO CERTAIN RESTRICTIONS UNDER THE TERMS
OF THE STOCKHOLDERS’ AGREEMENT DATED AS OF JUNE 9, 2005, AS AMENDED
FROM TIME TO TIME, BETWEEN THE ISSUER AND THE HOLDER HEREOF AND MAY NOT BE
OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT IN ACCORDANCE WITH
THE TERMS OF THAT AGREEMENT.

 

 

	
  No.

  	
   

  	
   

  	
   

  	
  Series B Warrants

  

 

Series B Warrant Certificate

 

PATHMARK STORES, INC.

 

This Warrant Certificate
certifies that                               ,
or registered assigns, is the registered holder of the number of Warrants (the “Warrants”)
set forth above to purchase Common Stock, $.01 par value (the “Common Stock”),
of Pathmark Stores, Inc., a Delaware corporation (the “Company”).  Each Warrant entitles the holder upon
exercise to receive from the Company one fully paid and nonassessable share of
Common Stock (a “Warrant Share”) at the initial exercise price (the “Exercise
Price”) of $15.00 payable in lawful money of the United States of America,
upon surrender of this Warrant Certificate and payment of the Exercise Price at
the office of the Company designated for such purpose, but only subject to the
conditions set forth herein and in the Warrant Agreement referred to
hereinafter.  The Warrants may be exercised
only during the Series B Exercise Period (as defined in the Warrant Agreement).  Furthermore, Warrants may be exercised during
the Series B Exercise Period without the exchange of funds pursuant to the net
exercise provisions of Section 5 of the Warrant Agreement.  The Exercise Price and number of Warrant
Shares issuable upon exercise of the Warrants are subject to adjustment upon
the occurrence of certain events, as set forth in the Warrant Agreement.

 

The Warrants evidenced by
this Warrant Certificate are part of a duly authorized issue of Series B Warrants,
and are issued or to be issued pursuant to a Warrant Agreement dated as of June 9,
2005 (the “Warrant Agreement”), duly executed and delivered by the

 

B-1

 

Company, which
Warrant Agreement is hereby incorporated by reference in and made a part of
this instrument and is hereby referred to for a description of the rights,
limitation of rights, obligations, duties and immunities thereunder of the Company
and the holders (the words “holders” or “holder” meaning the registered holders
or registered holder) of the Warrants.  A copy
of the Warrant Agreement may be obtained by the holder hereof upon written
request to the Company.

 

The holder of Warrants
evidenced by this Warrant Certificate may exercise such Warrants during the Series
B Exercise Period under and pursuant to the terms and conditions of the Warrant
Agreement by surrendering this Warrant Certificate, with the form of election
to purchase set forth hereon (and by this reference made a part hereof)
properly completed and executed, together with payment of the Exercise Price in
cash or by certified or bank check at the office of the Company designated for
such purpose or by wire transfer of immediately available funds to an account
designated by the Company.  In the
alternative, the holder of Warrants evidenced by this Warrant Certificate may
exercise such Warrants on a net basis, such that, without the exchange of any
funds, the holder receives that number of Warrant Shares (and such other
consideration) otherwise issuable (or payable) upon exercise of such Warrants
less that number of Warrant Shares having an aggregate Current Market Value (as
defined in Section 9 of the Warrant Agreement) at the time of exercise
equal to the aggregate Exercise Price that would otherwise have been paid by
the holder for the Warrant Shares.  In
the event that upon any exercise of warrants evidenced hereby the number of
Warrants exercised shall be less than the total number of Warrants evidenced
hereby, there shall be issued by the Company to the holder hereof or his or its
registered assignee a new Warrant Certificate evidencing the number of Warrants
not exercised.

 

The Warrant Agreement
provides that upon the occurrence of certain events the number of Warrants and
the Exercise Price set forth on the face hereof may, subject to certain
conditions, be adjusted.  No fractions of
a share of Common Stock will be issued upon the exercise of any Warrant, but
the Company will pay the cash value thereof determined as provided in the
Warrant Agreement.

 

The holders of the
Warrants are entitled to certain registration rights with respect to the Common
Stock issuable upon the exercise thereof. 
Said registration rights are set forth in a Registration Rights
Agreement dated as of June 9, 2005, by and among the Company and
certain stockholders of the Company named therein (the “Registration Rights
Agreement”).  By acceptance of this
Warrant Certificate, the holder hereof agrees that upon exercise of some or all
of the Warrants evidenced hereby, he or it will be bound by the Registration
Rights Agreement as a holder of Registrable Securities thereunder.  A copy of the Registration Rights Agreement
may be obtained by the holder hereof upon written request to the Company.

 

Warrant Certificates,
when surrendered at the office of the Company by the registered holder thereof
in person or by legal representative or attorney duly authorized in writing,
may be exchanged, in the manner and subject to the limitations provided in the
Warrant Agreement, but without payment of any service charge, for another
Warrant Certificate or Warrant Certificates of like tenor evidencing in the
aggregate a like number of Warrants.

 

B-2

 

Subject to the terms and
conditions of the Warrant Agreement, upon due presentation for registration of
transfer of this Warrant Certificate at the office of the Company a new Warrant
Certificate or Warrant Certificates of like tenor and evidencing in the
aggregate a like number of Warrants shall be issued to the transferee(s) in
exchange for this Warrant Certificate, subject to the limitations provided in
the Warrant Agreement, without charge except for any tax or other governmental
charge imposed in connection therewith.

 

The Company may deem and
treat the registered holder(s) thereof as the absolute owner(s) of this Warrant
Certificate (notwithstanding any notation of ownership or other writing hereon
made by anyone), for the purpose of any exercise hereof, of any distribution to
the holder(s) hereof, and for all other purposes, and the Company shall not be
affected by any notice to the contrary.  Neither
the Warrants nor this Warrant Certificate entitles any holder hereof to any
rights of a stockholder of the Company.

 

IN WITNESS WHEREOF, Pathmark
Stores, Inc. has caused this Warrant Certificate to be signed by its Chairman
of the Board, Chief Executive Officer, President or Vice President and by its
Secretary or Assistant Secretary and has caused its corporate seal to be
affixed hereunto or imprinted hereon.

 

	
  Dated:

  	
   

  	
  , 2005

  	
  PATHMARK STORES,
  INC., a Delaware

  corporation

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

B-3

 

FORM OF ELECTION TO PURCHASE

 

(To Be Executed Upon Exercise Of Warrant)

 

The undersigned holder
hereby represents that he or it is the registered holder of this Warrant
Certificate, and hereby irrevocably elects to exercise the right, represented
by this Warrant Certificate, to receive                    shares
of Common Stock, $.01 par value, of Pathmark Stores, Inc. and herewith tenders
payment for such shares to the order of Pathmark Stores, Inc. the amount of $               
in accordance with the terms hereof (unless the holder is exercising Warrants
pursuant to the net exercise provisions of Section 5 of the Warrant
Agreement).  The undersigned requests
that a certificate for such shares be registered in the name of the undersigned
or nominee hereinafter set forth, and further that
such certificate be delivered to the undersigned at the address hereinafter set
forth or to such other person or entity as is hereinafter set forth.  If said number of shares is less than all of
the shares of Common Stock purchasable hereunder, the undersigned requests that
a new Warrant Certificate representing the remaining balance of such shares be
registered in the name of the undersigned or nominee hereinafter set forth, and
further that such certificate be delivered to the undersigned at the address
hereinafter set forth or to such other person or entity as is hereinafter set
forth.

 

	
   

  	
  Certificate to be registered as follows:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  
	
   

  	
  Social Security
  or

  	
   

  
	
   

  	
  Taxpayer Identification
  No.:

  	
   

  	
   

  
	
   

  
	
   

  	
  Certificate to be delivered as follows:

  	
   

  
	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  
	
   

  
	
    Date:

  	
   

  	
   

  	
  Signature:

  	
   

  	
   

  
										

 

B-4

 

FORM OF CERTIFICATE OF
TRANSFER

 

Pathmark Stores, Inc.

200 Milik Street

Carteret, New Jersey 07008

Attention:  Marc
A. Strassler

 

Re:                               Series B Warrants (the “Warrants”)

 

(CUSIP               )

 

Reference is hereby made
to the Warrant Agreement, dated as of June 9, 2005 (the “Warrant
Agreement”), relating to Series A Warrants and
Series B Warrants of Pathmark Stores, Inc. (the “Company”).  Capitalized terms used but not defined herein
shall have the meanings given to them in the Warrant Agreement.

 

                                 ,
(the “Transferor”) owns and proposes to transfer the Warrant[s] or
interest in such Warrant[s] specified in Annex A hereto (the “Transfer”),
to                                            (the
“Transferee”), as further specified in Annex A hereto.  In connection with the Transfer, the
Transferor hereby certifies that:

 

[CHECK ALL THAT APPLY]

 

1.                                       o  CHECK IF
TRANSFEREE WILL TAKE DELIVERY OF A WARRANT PURSUANT TO RULE 144A.  The Transfer is being effected pursuant to
and in accordance with Rule 144A under the United States Securities Act of
1933, as amended (the “Securities Act”), and, accordingly, the
Transferor hereby further certifies that the Warrant is being transferred to a
person that the Transferor reasonably believed and believes is purchasing the
Warrant for its own account, or for one or more accounts with respect to which
such person exercises sole investment discretion, and such person and each such
account is a “qualified institutional buyer” within the meaning of
Rule 144A in a transaction meeting the requirements of Rule 144A and
such Transfer is in compliance with any applicable blue sky securities laws of
any state of the United States.  Upon
consummation of the proposed Transfer in accordance with the terms of the
Warrant Agreement, the transferred Warrant will be subject to the restrictions
on transfer enumerated in the private placement legend printed on the Warrant as
contemplated by the Warrant Agreement.

 

2.                                       o  CHECK IF
TRANSFEREE WILL TAKE DELIVERY OF A WARRANT PURSUANT TO REGULATION S.  The Transfer is being effected pursuant to and
in accordance with Rule 903 or Rule 904 under the Securities Act and,
accordingly, the Transferor hereby further certifies that (i) the Transfer
is not being made to a person inside the United States and (x) at the time
the buy order was originated, the Transferee was outside the United States or
such Transferor and any person acting on its behalf reasonably believed and
believes that the Transferee was outside the United States or (y) the
transaction was executed in, on or through the facilities of a designated
offshore securities market and neither such Transferor nor any person acting on
its behalf knows that the transaction was prearranged with a buyer inside the
United States, (ii) no directed selling efforts have been made in
contravention of the requirements of Rule 903(b) or Rule 904(b) of
Regulation S under the Securities Act, (iii) the

 

B-5

 

transaction is not part of a plan or scheme to evade
the registration requirements of the Securities Act and (iv) if the
proposed transfer is being made prior to the expiration of the Restricted
Period, the transfer is not being made to a person inside the United States or
for the account or benefit of a person inside the United States.  Upon consummation of the proposed transfer in
accordance with the terms of the Warrant Agreement, the transferred Warrant
will be subject to the restrictions on Transfer enumerated in the private
placement legend printed on the Warrant as contemplated by the Warrant Agreement.

 

3.                                       o  CHECK AND
COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF A WARRANT PURSUANT TO ANY
PROVISION OF THE SECURITIES ACT OTHER THAN RULE 144A OR
REGULATION S.  The Transfer is being
effected in compliance with the transfer restrictions applicable to beneficial interests
in restricted Warrants and pursuant to and in accordance with the Securities
Act and any applicable blue sky securities laws of any state of the United
States, and accordingly the Transferor hereby further certifies that (check
one):

 

(a)          o  such Transfer is
being effected pursuant to and in accordance with Rule 144 under the Securities
Act;

 

or

 

(b)         o  such Transfer is
being effected to the Company or a subsidiary thereof;

 

or

 

(c)          o  such Transfer is
being effected pursuant to an effective registration statement under the
Securities Act and in compliance with the prospectus delivery requirements of
the Securities Act;

 

or

 

(d)         o   such Transfer is being effected to an “accredited
investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities
Act, who is not also a “qualified institutional buyer”) and pursuant to an
exemption from the registration requirements of the Securities Act other than
Rule 144A, Rule 144 or Rule 904, and the Transferor hereby
further certifies that it has not engaged in any general solicitation within
the meaning of Regulation D under the Securities Act and the Transfer
complies with the transfer restrictions applicable to restricted Warrants and
the requirements of the exemption claimed, which certification is supported by,
if the Company so requests, an opinion of counsel provided by the Transferor or
the Transferee (a copy of which the Transferor has attached to this
certification), to the effect that such Transfer is in compliance with the
Securities Act.  Upon consummation of the
proposed transfer in accordance with the terms of the Warrant Agreement, the
transferred Warrant will be subject to the restrictions on transfer enumerated
in the private placement legend printed on the Warrants as contemplated by the
Warrant Agreement.

 

B-6

 

4.                                       o  CHECK IF
TRANSFEREE WILL TAKE DELIVERY OF AN UNRESTRICTED WARRANT.

 

(a)          o  CHECK IF TRANSFER IS PURSUANT TO
RULE 144.  (i) The Transfer is
being effected pursuant to and in accordance with Rule 144 under the
Securities Act and in compliance with the transfer restrictions contained in
the Warrant Agreement and any applicable blue sky securities laws of any state
of the United States and (ii) the restrictions on transfer contained in
the Warrant Agreement and the private placement legend are not required in
order to maintain compliance with the Securities Act.  Upon consummation of the proposed Transfer in
accordance with the terms of the Warrant Agreement, the transferred Warrant
will no longer be subject to the restrictions on transfer enumerated in the
private placement legend printed on the restricted Warrants as contemplated by the
Warrant Agreement.

 

(b)         o  CHECK IF TRANSFER IS PURSUANT TO REGULATION
S.  (i) The Transfer is being
effected pursuant to and in accordance with Rule 903 or Rule 904
under the Securities Act and in compliance with the transfer restrictions
contained in the Warrant Agreement and any applicable blue sky securities laws
of any state of the United States and (ii) the restrictions on transfer
contained in the Warrant Agreement and the private placement legend are not
required in order to maintain compliance with the Securities Act.  Upon consummation of the proposed Transfer in
accordance with the terms of the Warrant Agreement, the transferred Warrant
will no longer be subject to the restrictions on transfer enumerated in the
private placement legend printed on the restricted Warrants as contemplated by
the Warrant Agreement.

 

(c)          o  CHECK IF TRANSFER IS PURSUANT TO OTHER
EXEMPTION.  (i) The Transfer is
being effected pursuant to and in compliance with an exemption from the
registration requirements of the Securities Act other than Rule 144,
Rule 903 or Rule 904 and in compliance with the transfer restrictions
contained in the Warrant Agreement and any applicable blue sky securities laws
of any State of the United States and (ii) the restrictions on transfer
contained in the Warrant Agreement and the private placement legend are not
required in order to maintain compliance with the Securities Act.  Upon consummation of the proposed Transfer in
accordance with the terms of the Warrant Agreement, the transferred Warrant
will not be subject to the restrictions on transfer enumerated in the private
placement legend printed on the restricted Warrants as contemplated by the
Warrant Agreement.

 

B-7

 

This certificate and the
statements contained herein are made for your benefit and the benefit of the
Company.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  [Insert Name of
  Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
						

 

B-8

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