Document:

<PAGE>
                                                                   Exhibit 10.1

                                         [Published CUSIP Number: _____________]

                           SECOND AMENDED AND RESTATED
                           REVOLVING CREDIT AGREEMENT

                            Dated as of June 2, 2006

                                      among

                             THE TIMBERLAND COMPANY

                     THE LENDERS LISTED ON SCHEDULE 1 HERETO

                 BANK OF AMERICA, N.A., as Administrative Agent

                                      with

     BANC OF AMERICA SECURITIES LLC, as Lead Arranger and Sole Book Manager

                                       and

       WACHOVIA CAPITAL MARKETS, LLC, as Co-Arranger and Syndication Agent

                                       and

                JPMORGAN CHASE BANK, N.A., as Documentation Agent

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
1.  DEFINITIONS AND RULES OF INTERPRETATION .............................     1
    1.1.   Definitions ..................................................     1
    1.2.   Rules of Interpretation ......................................    21
    1.3.   Additional Alternative Currencies ............................    22
    1.4.   Change of Currency ...........................................    22
    1.5.   Exchange Rates; Currency Equivalents .........................    23
    1.6.   Times of Day .................................................    23
    1.7.   Letter of Credit Amounts .....................................    23
    1.8.   Changes in GAAP ..............................................    23

2.  THE REVOLVING CREDIT FACILITY .......................................    24
    2.1.   Commitment to Lend ...........................................    24
    2.2.   Fees .........................................................    24
    2.3.   Change of Total Commitment ...................................    25
    2.4.   Loan Account .................................................    25
    2.5.   Interest on Revolving Credit Loans ...........................    26
    2.6.   Requests for Revolving Credit Loans ..........................    26
    2.7.   Conversion Options ...........................................    26
    2.8.   Funds for Revolving Credit Loans .............................    28
    2.9.   Failure to Satisfy Conditions Precedent ......................    29
    2.10.  Funding Source ...............................................    29
    2.11.  Optional Prepayments .........................................    29
    2.12.  Mandatory Repayments .........................................    30

3.  THE SWING LINE ......................................................    30
    3.1.   The Swing Line Loans .........................................    30
    3.2.   Notice of Borrowing ..........................................    31
    3.3.   Interest on Swing Line Loans .................................    31
    3.4.   Repayment of Swing Line Loans ................................    32
    3.5.   Loan Account .................................................    33

4.  LETTERS OF CREDIT ...................................................    33
    4.1.   Letter of Credit Commitments .................................    33
    4.2.   Drawings and Reimbursements; Funding of Participations .......    37
    4.3.   Repayment of Participations ..................................    39
    4.4.   Obligations Absolute .........................................    40
    4.5.   Reliance by Issuer ...........................................    41
    4.6.   Letter of Credit Fees ........................................    41
    4.7.   Letters of Credit Issued for Subsidiaries ....................    42
    4.8.   Conflict with Issuer Documents ...............................    42

5.  CERTAIN GENERAL PROVISIONS ..........................................    42
    5.1.   Closing Fees .................................................    42
</TABLE>

                                        i
<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
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                                                                            ----
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    5.2.   Administrative Agency Fee ....................................    42
    5.3.   Funds for Payments ...........................................    42
    5.4.   Computations .................................................    44
    5.5.   Inability to Determine Eurodollar Rate .......................    45
    5.6.   Illegality ...................................................    45
    5.7.   Increased Costs; Mitigation Obligations ......................    45
    5.8.   Indemnity ....................................................    47
    5.9.   Interest After Default .......................................    47
    5.10.  Replacement of Lenders .......................................    48

6.  REPRESENTATIONS AND WARRANTIES ......................................    49
    6.1.   Corporate Authority ..........................................    49
    6.2.   Governmental Approvals .......................................    49
    6.3.   Financial Statements .........................................    50
    6.4.   No Material Adverse Changes, etc .............................    50
    6.5.   Franchises, Patents, Copyrights, etc .........................    50
    6.6.   Litigation ...................................................    50
    6.7.   Compliance with Other Instruments, Laws, etc .................    50
    6.8.   Tax Status ...................................................    50
    6.9.   No Event of Default ..........................................    50
    6.10.  Holding Company and Investment Company Acts ..................    50
    6.11.  Employee Benefit Plans and Guaranteed Pension Plans ..........    51
    6.12.  Environmental Compliance .....................................    51
    6.13.  Subsidiaries, etc ............................................    51
    6.14.  Disclosure ...................................................    51
    6.15.  Foreign Assets Control Regulations, Etc ......................    52

7.  AFFIRMATIVE COVENANTS ...............................................    52
    7.1.   Punctual Payment .............................................    52
    7.2.   Records and Accounts .........................................    52
    7.3.   Financial Statements, Certificates and Information ...........    52
    7.4.   Notices of Defaults ..........................................    54
    7.5.   Legal Existence; Maintenance of Properties ...................    54
    7.6.   Insurance ....................................................    55
    7.7.   Taxes ........................................................    55
    7.8.   Inspection of Properties and Books, etc ......................    55
    7.9.   Compliance with Laws, Contracts, Licenses, and Permits .......    55
    7.10.  Use of Proceeds and Margin Stock .............................    56
    7.11.  Further Assurances ...........................................    56
    7.12.  Pari Passu ...................................................    56

8.  CERTAIN NEGATIVE COVENANTS ..........................................    56
    8.1.   Restrictions on Indebtedness .................................    56
</TABLE>

                                       ii

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
    8.2.   Restrictions on Liens ........................................    57
    8.3.   Restrictions on Investments ..................................    59
    8.4.   Restricted Payments ..........................................    60
    8.5.   Merger, Consolidation and Disposition of Assets ..............    60
    8.6.   Derivative Transactions ......................................    61
    8.7.   Business Activities ..........................................    61
    8.8.   Fiscal Year ..................................................    62
    8.9.   Transactions with Affiliates .................................    62

9.  FINANCIAL COVENANTS .................................................    62
    9.1.   Fixed Charge Coverage Ratio ..................................    62
    9.2.   Leverage Ratio ...............................................    62

10. CLOSING CONDITIONS ..................................................    62
    10.1.  Loan Documents ...............................................    62
    10.2.  Certified Copies of Governing Documents ......................    62
    10.3.  Corporate or Other Action ....................................    63
    10.4.  Incumbency Certificate .......................................    63
    10.5.  Compliance Certificate .......................................    63
    10.6.  Opinion of Counsel ...........................................    63
    10.7.  Termination of Existing Credit Agreement .....................    63
    10.8.  Payment of Fees ..............................................    63

11. CONDITIONS TO ALL BORROWINGS ........................................    63
    11.1.  Representations True; No Event of Default ....................    63
    11.2.  No Legal Impediment ..........................................    64
    11.3.  Proceedings and Documents ....................................    64
    11.4.  Alternative Currency .........................................    64

12. EVENTS OF DEFAULT; ACCELERATION; ETC ................................    64
    12.1.  Events of Default and Acceleration ...........................    64
    12.2.  Termination of Commitments ...................................    66
    12.3.  Remedies .....................................................    67

13. THE ADMINISTRATIVE AGENT ............................................    67
    13.1.  Appointment and Authority ....................................    67
    13.2.  Rights as a Lender ...........................................    67
    13.3.  Exculpatory Provisions .......................................    68
    13.4.  Reliance by Administrative Agent .............................    68
    13.5.  Delegation of Duties .........................................    69
    13.6.  Payments .....................................................    69
    13.7.  Purchasers of Letter of Credit Participations ................    70
    13.8.  Indemnity ....................................................    70
    13.9.  Non-Reliance on Administrative Agent and Other Lenders .......    70
</TABLE>

                                       iii

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
    13.10. Resignation of Administrative Agent ..........................    70
    13.11. Administrative Agent May File Proofs of Claim ................    71
    13.12. Notification of Defaults and Events of Default ...............    72
    13.13. No Other Duties, Etc .........................................    72

14. ASSIGNMENT AND PARTICIPATION ........................................    73
    14.1.  Conditions to Assignment Generally ...........................    73
    14.2.  Assignments by Lenders .......................................    73
    14.3.  Register .....................................................    75
    14.4.  Participations ...............................................    75
    14.5.  Limitations upon Participant Rights ..........................    75
    14.6.  Certain Pledges ..............................................    76
    14.7.  Electronic Execution of Assignments ..........................    76
    14.8.  Special Purpose Funding Vehicles .............................    76
    14.9.  Resignation as Fronting Bank or Swing Line Lender after
           Assignment ...................................................    77

15. PROVISIONS OF GENERAL APPLICATIONS ..................................    77
    15.1.  Setoff .......................................................    77
    15.2.  Expenses .....................................................    78
    15.3.  Indemnification ..............................................    79
    15.4.  Treatment of Certain Information; Confidentiality ............    79
    15.5.  Survival of Covenants, Etc ...................................    80
    15.6.  Notices ......................................................    81
    15.7.  Governing Law ................................................    83
    15.8.  Headings .....................................................    83
    15.9.  Counterparts .................................................    83
    15.10. Entire Agreement, Etc ........................................    83
    15.11. Waiver of Jury Trial .........................................    83
    15.12. Consents, Amendments, Waivers, Etc ...........................    84
    15.13. No Advisory or Fiduciary Responsibility ......................    85
    15.14. USA PATRIOT Act Notice .......................................    86
    15.15. Severability .................................................    86
</TABLE>

                                       iv

<PAGE>

                                    Exhibits

Exhibit A   Form of Loan Request
Exhibit B   Form of Swing Line Loan Request
Exhibit C   Form of Compliance Certificate
Exhibit D   Form of Assignment and Acceptance
Exhibit E   Form of Note

                                    Schedules

Schedule 1        Lenders and Commitments
Schedule 1-A      Existing Letters of Credit
Schedule 6.6      Litigation
Schedule 6.13     Existing Subsidiaries
Schedule 8.2      Existing Liens
Schedule 14.2.4   Assignment Fee
Schedule 15.6     Administrative Agent's Office

                                        v
<PAGE>

             SECOND AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT

     This SECOND AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT is made as of
June 2, 2006 by and among THE TIMBERLAND COMPANY (the "Borrower"), a Delaware
corporation having its principal place of business at 200 Domain Drive,
Stratham, NH 03885, and BANK OF AMERICA, N.A. (as successor by merger to Fleet
National Bank), a national banking association, and the other lending
institutions listed on Schedule 1 hereto and BANK OF AMERICA, N.A., as
administrative agent for itself and such other lending institutions.

     WHEREAS, the Borrower, the lenders thereto and the Administrative Agent
entered into an Amended and Restated Revolving Credit Agreement dated as of
April 30, 2004 (the "Existing Credit Agreement");

     WHEREAS, the Lenders and the Administrative Agent have agreed with the
Borrower to amend and restate the Existing Credit Agreement;

     NOW, THEREFORE, the Borrower, the Lenders and the Administrative Agent
agree that as of the Closing Date (as defined below) the Existing Credit
Agreement is amended and restated in its entirety as follows:

          1. DEFINITIONS AND RULES OF INTERPRETATION.

     1.1. DEFINITIONS. The following terms shall have the meanings set forth in
this Section 1 or elsewhere in the provisions of this Credit Agreement referred
to below:

     Adjustment Date. With respect to any quarter, the last Business Day of the
month in which the Administrative Agent's receipt of the Compliance Certificate
required to be delivered pursuant to Section 7.3(c) for such quarter; provided,
however, that in the event that the Borrower fails to deliver any Compliance
Certificate to the Administrative Agent within the time period set forth in
Section 7.3(c), the Adjustment Date shall be the last Business Day of the month
in which such Compliance Certificate was required to be delivered pursuant to
Section 7.3(c).

     Administrative Agent. Bank of America, N.A., acting as administrative agent
for the Lenders and each other Person appointed as the successor Administrative
Agent in accordance with Section 13.10.

     Administrative Agency Fee. See Section 5.2.

     Administrative Agent's Office. The Administrative Agent's address and, as
appropriate, account as set forth on Schedule 15.6, or such other address or
account as the Administrative Agent may from time to time notify to the Borrower
and the Lenders.

         Administrative Agent's Special Counsel. Bingham McCutchen LLP or such
 other counsel as may be approved by the Administrative Agent.

     Administrative Questionnaire. An Administrative Questionnaire in a form
supplied by the Administrative Agent.

<PAGE>

                                       -2-

     Affected Lender. See Section 5.10.

     Affiliate. Any Person that would be considered to be an affiliate of any
other Person under Rule 144(a) of the Rules and Regulations of the Securities
and Exchange Commission, as in effect on the date hereof, if such other Person
were issuing securities.

     Agent Parties. See Section 15.6.3.

     Alternative Currency. Each of Euro, Sterling, Yen, Swiss Franc, Hong Kong
Dollars, Canadian Dollars, Singapore Dollars, Swedish Krone, Norwegian Krone,
Danish Krone, Australian Dollars, New Zealand Dollars, Thai Baht, India Rupee
and each other currency (other than Dollars) that is approved in accordance with
Section 1.3.

     Alternative Currency Equivalent. At any time, with respect to any amount
denominated in Dollars, the equivalent amount thereof in the applicable
Alternative Currency as determined by the Administrative Agent or the Fronting
Bank, as the case may be, at such time on the basis of the Spot Rate (determined
in respect of the most recent Revaluation Date) for the purchase of such
Alternative Currency with Dollars.

     Applicable Margin. For each period commencing on an Adjustment Date through
the date immediately preceding the next Adjustment Date (each a "Rate Adjustment
Period"), the Applicable Margin shall be the applicable margin set forth below
with respect to the Fixed Charge Coverage Ratio, as determined for the Reference
Period of the Borrower and its Subsidiaries ending on the fiscal quarter ended
immediately prior to the applicable Rate Adjustment Period.

<TABLE>
<CAPTION>
                                       APPLICABLE
                                       MARGIN FOR                   STANDBY    DOCUMENTARY
           FIXED CHARGE     FACILITY   EURODOLLAR   UTILIZATION    LETTER OF    LETTER OF
LEVEL     COVERAGE RATIO       FEE     RATE LOANS      FEE        CREDIT FEE    CREDIT FEE
-----   -----------------   --------   ----------   -----------   ----------   -----------
<S>     <C>                 <C>        <C>          <C>           <C>          <C>
  I     Greater than or      0.065%      0.135%         0.05%       0.135%       0.0675%
        equal to 7.00

  II    Greater than or      0.070%      0.180%         0.05%       0.180%        0.090%
        equal to 6.00 but
        less than 7.00

 III    Greater than or      0.080%      0.270%         0.05%       0.270%        0.135%
        equal to 5.00 but
        less than 6.00

  IV    Greater than or      0.100%      0.350%         0.05%       0.350%        0.175%
        equal to 4.00 but
        less than 5.00

  V     Less than 4.00       0.150%      0.475%         0.05%       0.475%       0.2375%
</TABLE>

     Notwithstanding the foregoing, (a) for the Revolving Credit Loans
outstanding, Standby Letter of Credit Fees, Documentary Letter of Credit Fees
and the Facility Fee, the Applicable

<PAGE>

                                       -3-

Margin shall be based on the Compliance Certificate for the fiscal quarter most
recently ended, and (b) if the Borrower fails to deliver any Compliance
Certificate pursuant to Section 7.3(c) hereof then, for the period commencing on
the next Adjustment Date to occur subsequent to such failure through the date
immediately following the date on which such Compliance Certificate is
delivered, the Applicable Margin shall be the Applicable Margin set forth in
Level V above.

     Applicable Pension Legislation. At any time, any pension or retirement
benefits legislation (be it national, federal, provincial, territorial or
otherwise) then applicable to the Borrower or any of its Subsidiaries.

     Applicable Time. With respect to any borrowings and payments in any
Alternative Currency, the local time in the place of settlement for such
Alternative Currency as may be determined by the Administrative Agent or the
Fronting Bank, as the case may be, to be necessary for timely settlement on the
relevant date in accordance with normal banking procedures in the place of
payment.

     Approved Fund. Any Fund that is administered or managed by (a) a Lender,
(b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.

     Arrangers. The Lead Arranger and the Co-Arranger.

     Asset Sale. Any one or series of related transactions, except for sales of
inventory in the ordinary course of business consistent with past practices, in
which the Borrower or any of its Subsidiaries conveys, sells or otherwise
disposes of any of its properties, businesses or assets (including the sale or
issuance of capital stock of any Subsidiary other than to the Borrower or any
Subsidiary of the Borrower) whether owned on the Closing Date or thereafter
acquired.

     Assignee Group. Two or more Eligible Assignees that are Affiliates of one
another or two or more Approved Funds managed by the same investment advisor.

     Assignment and Acceptance. An assignment and acceptance entered into by the
parties to each assignment (with the consent of any party whose consent is
required by Section 14.2) and accepted by the Administrative Agent, in
substantially the form of Exhibit D or any other form approved by the
Administrative Agent.

     Assignment Fee. See Section 14.2.4.

     Australian Dollar or A$. The lawful currency of Australia.

     Auto-Extension Letter of Credit. See Section 4.1.2(c)

     Balance Sheet Date. December 31, 2005.

     Bank of America. Bank of America, N.A. and its successors.

     Base Rate. For any day a fluctuating rate per annum equal to the higher of
(a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect
for such day as publicly
<PAGE>

                                       -4-

announced from time to time by Bank of America as its "prime rate." The "prime
rate" is a rate set by Bank of America based upon various factors including Bank
of America's costs and desired return, general economic conditions and other
factors, and is used as a reference point for pricing some loans, which may be
priced at, above, or below such announced rate. Any change in such rate
announced by Bank of America shall take effect at the opening of business on the
day specified in the public announcement of such change.

     Base Rate Loans. Revolving Credit Loans bearing interest calculated by
reference to the Base Rate.

     Borrowed Money Indebtedness. Any of (a) the indebtedness of the Borrower
and its Subsidiaries, on a consolidated basis, relating to (i) the borrowing of
money or the obtaining of credit (but excluding the outstanding amount of
undrawn letters of credit), including the issuance of notes or bonds and unpaid
reimbursement obligations under letters of credit or banker's acceptances or
similar facilities, (ii) the deferred purchase price of assets (other than trade
payables incurred in the ordinary course of business), (iii) in respect of any
Synthetic Leases or any Capitalized Leases, and (b) Guarantees of indebtedness
of the type referred to in clause (a) of this definition of another Person.

     Borrower. As defined in the preamble hereto.

     Borrower Materials. See Section 7.3.

     Business Day. Any day on which banking institutions in New York, New York,
are open for the transaction of banking business and, in the case of Eurodollar
Rate Loans, also a day which is a Eurodollar Business Day.

     Canadian Dollar or Can$. The lawful currency of Canada.

     Capitalized Leases. Leases under which the Borrower or any of its
Subsidiaries is the lessee or obligor, the discounted future rental payment
obligations under which are required to be capitalized on the balance sheet of
the lessee or obligor in accordance with GAAP.

     Capital Stock. Any and all shares, interests, participations or other
equivalents (however designated) of capital stock of a corporation, any and all
equivalent ownership interests in a Person (other than a corporation) and any
and all warrants, rights or options to purchase any of the foregoing.

     Cash Collateralize. See Section 4.1.3.

     Change in Law. The occurrence, after the date of this Credit Agreement, of
any of the following: (a) the adoption or taking effect of any law, rule,
regulation or treaty, (b) any change in any law, rule, regulation or treaty or
in the administration, interpretation or application thereof by any Governmental
Authority or (c) the making or issuance of any request, guideline or directive
(whether or not having the force of law, but if not having the force of law, as
based on the Administrative Agent's reasonable belief that such request,
guideline or directive is consistent with prudent practice in the financial
services industry at that time) by any Governmental Authority.

<PAGE>

                                       -5-

     Change of Control. Either (a) an event or series of events by which any
person or group of persons (within the meaning of Section 13 or 14 of the
Securities Exchange Act of 1934) (other than Sidney W. Swartz, his heirs or any
trusts created by or for any of the foregoing, the Swartz Family Charitable
Trust, The Sidney W. Swartz 1982 Family Trust, The Swartz Foundation, The Sidney
and Judith Swartz Charitable Remainder Unitrust, and The Swartz Family
Investments L.L.C.) shall have acquired beneficial ownership (within the meaning
of Rule 13d-3 promulgated by the Securities and Exchange Commission under said
Act), directly or indirectly, of fifty one percent (51%) or more of the voting
power to elect a majority of the Board of Directors of the Borrower; or (b)
during any period of twelve (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 other than by
voluntary resignation, death or retirement.

     Closing Date. The first date on which the conditions set forth in Section
10 have been satisfied.

     Closing Fee. See Section 5.1.

     Co-Arranger. Wachovia Capital Markets, LLC.

     Code. The Internal Revenue Code of 1986.

     Commitment. With respect to each Lender, the amount set forth on Schedule 1
hereto as the amount of such Lender's commitment to make Revolving Credit Loans
to, and to participate in the issuance, extension, amendment and renewal of
Letters of Credit for the account of, the Borrower, as the same may be increased
or reduced from time to time pursuant to the terms hereof; or if such commitment
is terminated pursuant to the provisions hereof, zero.

     Commitment Percentage. With respect to any Lender at any time, the
percentage (carried out to the ninth decimal place) of the Total Commitment
represented by such Lender's Commitment at such time. If the commitment(s) of
each Lender to make Loans and the obligation of the Fronting Bank to issue
Letters of Credit have been terminated pursuant to Section 12.2 or if the Total
Commitment has expired, then the Commitment Percentage of each Lender shall be
determined based on the Commitment Percentage of such Lender most recently in
effect, giving effect to any subsequent assignments. The initial Commitment
Percentage of each Lender is set forth opposite the name of such Lender on
Schedule 1 or in the Assignment and Acceptance pursuant to which such Lender
becomes a party hereto, as applicable.

     Committed Borrowing. A borrowing consisting of simultaneous Revolving
Credit Loans of the same Type and, in the case of Eurodollar Rate Loans, having
the same Interest Period made by each of the Lenders pursuant to Section 2.

     Compliance Certificate. See Section 7.3(c).

     Consolidated or consolidated. With reference to any term defined herein,
shall mean that term as applied to the accounts of the Borrower and its
Subsidiaries, consolidated in accordance with GAAP.

<PAGE>

                                       -6-

     Consolidated EBITDA. With respect to any fiscal period, an amount equal to
the sum of (a) consolidated earnings (or losses) from the operations of the
Borrower and its Subsidiaries for such fiscal period, after all operating
expenses and other proper charges but before payment or provision for any income
taxes or interest expenses for such fiscal period, plus (b) in each case to the
extent deducted in the calculation of consolidated earnings (or loss) from the
operations of the Borrower and its Subsidiaries for such fiscal period and
without duplication (i) depreciation and amortization for such period, (ii)
expenses, not to exceed $15,000,000 in the aggregate, deducted in such period
resulting from the issuance of Capital Stock permitted hereunder, provided that
such expenses are and will be non-cash items in the period when taken and in all
later fiscal periods and (iii) non-cash writedowns of goodwill, such writedowns
not to exceed $30,000,000, in the aggregate all as determined in accordance with
GAAP.

     Consolidated Net Income (or Deficit). The consolidated net income (or
deficit) of the Borrower and its Subsidiaries, after deduction of all expenses,
taxes, and other proper charges, determined in accordance with GAAP.

     Consolidated Rental Expense. All obligations of the Borrower or any of its
Subsidiaries under any rental agreements or leases of property, other than (a)
obligations that can be terminated by the giving of notice without liability to
the Borrower or such Subsidiary in excess of the liability for rent due as of
the date on which such notice is given and under which no penalty or premium is
paid as a result of any such termination, and (b) obligations in respect of
Capitalized Leases and Synthetic Leases.

     Consolidated Total Assets. All assets of the Borrower and its Subsidiaries
determined on a consolidated basis in accordance with GAAP.

     Consolidated Total Funded Debt. With respect to the Borrower and its
Subsidiaries, the aggregate amount of Borrowed Money Indebtedness (not including
clause (b) of the definition of such term) of the Borrower and its Subsidiaries.

     Consolidated Total Interest Expense. For any period, the aggregate amount
of interest required to be paid or accrued by the Borrower and its Subsidiaries
during such period on all indebtedness of the Borrower and its Subsidiaries
outstanding during all or any part of such period in accordance with GAAP
(including payments consisting of interest in respect of any Capitalized Lease
or any Synthetic Lease).

     Conversion Request. A notice given by the Borrower to the Administrative
Agent of the Borrower's election to convert or continue a Loan in accordance
with Section 2.7.

     Credit Agreement. This Second Amended and Restated Revolving Credit
Agreement, including the Schedules and Exhibits hereto, as originally executed,
or if this Second Amended and Restated Revolving Credit Agreement is further
amended, varied or supplemented from time to time, as so amended, varied or
supplemented.

     Danish Krone or DKr. The lawful currency of Denmark.

     Debtor Relief Laws. The Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of
creditors, moratorium, rearrangement,

<PAGE>

                                       -7-

receivership, insolvency, reorganization, or similar debtor relief Laws of the
United States or other applicable jurisdictions from time to time in effect and
affecting the rights of creditors generally.

     Default. Any event described in Section 12.1 (other than an event described
in Section 12.1(d)) which would constitute, after the giving of notice or the
lapse of time required pursuant to such Section 12.1, an Event of Default.

     Delinquent Lender. See Section 13.6.3.

     Derivative Transactions. Every obligation of the Borrower or any of its
Subsidiaries under any forward contract, futures contract, swap, option or other
financing agreement or arrangement (including, without limitation, caps, floors,
collars and similar agreements), the value of which is dependent upon interest
rates, currency exchange rates, commodities or other indices.

     Distribution. (a) The declaration or payment by the Borrower of any
dividend on or in respect of any shares of any class of Capital Stock of the
Borrower, other than dividends payable solely in shares of common stock of the
Borrower or stock splits; (b) the purchase (including purchases related to the
Borrower's employee stock purchase plans and stock option plans), redemption,
defeasance, retirement or other acquisition by the Borrower of any shares of any
class of Capital Stock of the Borrower, directly or indirectly through a
Subsidiary of the Borrower or otherwise (including the setting apart of assets
for a sinking or other analogous fund to be used for such purpose), other than
any such purchase, redemption or acquisition in exchange for shares of common
stock of the Borrower; or (c) the return of capital by the Borrower to its
shareholders as such.

     Documentary Letter of Credit Fee. See Section 4.6.

     Documentation Agent. JPMorgan Chase Bank, N.A.

     Dollars or $. Dollars in lawful currency of the United States of America.

     Dollar Equivalent. At any time, (a) with respect to any amount denominated
in Dollars, such amount, and (b) with respect to any amount denominated in any
Alternative Currency, the equivalent amount thereof in Dollars as determined by
the Administrative Agent or the Fronting Bank, as the case may be, at such time
on the basis of the Spot Rate (determined in respect of the most recent
Revaluation Date) for the purchase of Dollars with such Alternative Currency.

     Domestic Lending Office. Initially, the office of each Lender designated as
such in Schedule 1 hereto; thereafter, such other office of such Lender, if any,
located within the United States that will be making or maintaining Base Rate
Loans.

     Drawdown Date. The date on which any Loan is made or is to be made, and the
date on which any Loan is converted or continued in accordance with Section 2.7.

     EBITDA. With respect to any fiscal period of any Person, an amount equal to
the sum of (a) earnings (or loss) from the operations of such Person for such
fiscal period, after all operating

<PAGE>

                                       -8-

expenses and other proper charges but before payment or provision for any income
taxes or interest expense for such fiscal period, plus (b) in each case to the
extent deducted in the calculation of such Person's earnings (or loss) from the
operations for such fiscal period and without duplication, (i) depreciation and
amortization for such period, (ii) expenses, not to exceed $15,000,000 in the
aggregate, deducted in such period resulting from the issuance of Capital Stock
permitted hereunder, provided that such expenses are and will be non-cash items
in the period when taken and in all later fiscal periods and (iii) non-cash
writedowns of goodwill, such writedowns not to exceed $30,000,000 in the
aggregate,, all as determined in accordance with GAAP.

     Eligible Assignee. Any Person that meets the requirements to be an assignee
under Sections 14.2.3, 14.2.5 and 14.2.6 (subject to such consents, if any, as
may be required under Section 14.2.3).

     Employee Benefit Plan. Any employee benefit plan within the meaning of
Section 3(3) of ERISA maintained or contributed to by the Borrower or any ERISA
Affiliate, other than a Guaranteed Pension Plan or a Multiemployer Plan.

     EMU. The economic and monetary union in accordance with the Treaty of Rome
1957, as amended by the Single European Act 1986, the Maastricht Treaty of 1992
and the Amsterdam Treaty of 1998.

     EMU Legislation. The legislative measures of the European Council for the
introduction of, changeover to or operation of a single or unified European
currency.

     Environmental Laws. Any and all federal, state, local and foreign statutes,
laws, judicial decisions, regulations, ordinances, rules, judgments, orders,
decrees, 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.

     Environmental Liability. Any liability, contingent or otherwise (including
any liability for damages, costs of environmental remediation, fines, penalties
or indemnities), of the Borrower or any of its Subsidiaries directly or
indirectly resulting from or based upon (a) its or their act or omission with
respect to violation of any Environmental Law, (b) its or their act or omission
with respect to the generation, use, handling, transportation, storage,
treatment or disposal of any Hazardous Substances, (c) its or their act or
omission with respect to exposure to any Hazardous Substances, (d) its or their
act or omission with respect to the release or threatened release of any
Hazardous Substances into the environment or (e) any contract, agreement or
other consensual arrangement pursuant to which liability is assumed or imposed
with respect to any of the foregoing.

     Equity Related Purchase Obligation. Any (a) derivatives or other
transactions with any financial institution, commodities or stock exchange or
clearinghouse (a "Derivatives

<PAGE>

                                       -9-

Counterparty") obligating the Borrower or any of its Subsidiaries to make
payments to such Derivatives Counterparty as a result of any change in market
value of any Capital Stock of the Borrower or such Subsidiary and (b)
irrevocable obligations to purchase, redeem, retire or otherwise acquire for
value any shares of Capital Stock issued by such Person or any rights measured
by the value of such Capital Stock.

     ERISA. The Employee Retirement Income Security Act of 1974.

     ERISA Affiliate. Any trade or business (whether or not incorporated) under
common control with the Borrower within the meaning of Section 414(b) or (c) of
the Code (and Sections 414(m) and (o) of the Code for purposes of provisions
relating to Section 412 of the Code).

     Euro or EUR. The lawful currency of the Participating Member States
introduced in accordance with the EMU Legislation.

     Eurodollar Business Day. Any day on which commercial banks are open for
international business (including dealings in Dollar deposits) in London or such
other eurodollar interbank market as may be selected by the Administrative Agent
in its sole discretion acting in good faith.

     Eurodollar Lending Office. Initially, the office of each Lender designated
as such in Schedule 1 hereto; thereafter, such other office of such Lender, if
any, that shall be making or maintaining Eurodollar Rate Loans.

     Eurodollar Rate. For any Interest Period with respect to a Eurodollar Rate
Loan, a rate per annum determined by the Administrative Agent pursuant to the
following formula:

                               Eurodollar Base Rate
     Eurodollar Rate = ------------------------------------
                       1.00 - Eurodollar Reserve Percentage

     Where,

     "Eurodollar Base Rate" means, for such Interest Period, the rate per annum
     equal to the British Bankers Association LIBOR Rate ("BBA LIBOR"), as
     published by Reuters (or other commercially available source providing
     quotations of BBA LIBOR as designated by the Administrative Agent from time
     to time) at approximately 11:00 a.m., London time, two (2) Business Days
     prior to the commencement of such Interest Period, for Dollar deposits (for
     delivery on the first day of such Interest Period) with a term equivalent
     to such Interest Period. If such rate is not available at such time for any
     reason, then the "Eurodollar Base Rate" for such Interest Period shall be
     the rate per annum determined by the Administrative Agent to be the rate at
     which deposits in Dollars for delivery on the first day of such Interest
     Period in same day funds in the approximate amount of the Eurodollar Rate
     Loan being made, continued or converted by Bank of America and with a term
     equivalent to such Interest Period would be offered by Bank of America's
     London Branch to major banks in the London interbank eurodollar market at
     their request at approximately 11:00 a.m. (London time) two (2) Business
     Days prior to the commencement of such Interest Period; and
<PAGE>

                                      -10-

     "Eurodollar Reserve Percentage" means, for any day during any Interest
     Period, the reserve percentage (expressed as a decimal, carried out to five
     decimal places) in effect on such day, whether or not applicable to any
     Lender, under regulations issued from time to time by the FRB for
     determining the maximum reserve requirement (including any emergency,
     supplemental or other marginal reserve requirement) with respect to
     Eurocurrency funding (currently referred to as "Eurocurrency Liabilities").
     The Eurodollar Rate for each outstanding Eurodollar Rate Loan shall be
     adjusted automatically as of the effective date of any change in the
     Eurodollar Reserve Percentage.

     Eurodollar Rate Loans. Revolving Credit Loans bearing interest calculated
by reference to the Eurodollar Rate.

     Event of Default. See Section 12.1.

     Excluded Taxes. With respect to the Administrative Agent, any Lender, the
Fronting Bank or any other recipient of any payment to be made by or on account
of any obligation of the Borrower hereunder, (a) taxes imposed on or measured by
its overall net income (however denominated), and franchise taxes imposed on it
(in lieu of net income taxes), by the jurisdiction (or any political subdivision
thereof) under the laws of which such recipient is organized or in which its
principal office is located or, in the case of any Lender, in which its
applicable Domestic Lending Office is located, (b) any branch profits taxes
imposed by the United States or any similar tax imposed by any other
jurisdiction in which the Borrower is located and (c) in the case of a Non-U.S.
Lender (other than an assignee pursuant to a request by the Borrower under
Section 5.10), any withholding tax that is imposed on amounts payable to such
Non-U.S. Lender at the time such Non-U.S. Lender becomes a party hereto (or
designates a new Eurodollar Lending Office) or is attributable to such Non-U.S.
Lender's failure or inability (other than as a result of a Change in Law) to
comply with Section 5.3.4, except to the extent that such Non-U.S. Lender (or
its assignor, if any) was entitled, at the time of designation of a new
Eurodollar Lending Office (or assignment), to receive additional amounts from
the Borrower with respect to such withholding tax pursuant to Section 5.3.3(a).

     Executive Order. See Section 6.15.

     Existing Credit Agreement. As defined in the preamble hereto.

     Existing Letters of Credit. Collectively, the letters of credit listed on
Schedule 1-A hereto issued under the Existing Credit Agreement.

     Facility Fee. See Section 2.2.1.

     Factorable Receivables. Accounts receivable of the Borrower and its
Subsidiaries that (a) arise from the sales of inventory, (b) are produced in the
ordinary course of business and (c) are not contingent upon any further
performance (other than product guarantees) by the Borrower or any of its
Subsidiaries.

     Federal Funds Rate. For any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System

<PAGE>

                                      -11-

arranged by Federal funds brokers on such day, as published by the Federal
Reserve Bank of New York on the Business Day next succeeding such day; provided
that (a) if such day is not a Business Day, the Federal Funds Rate for such day
shall be such rate on such transactions on the next preceding Business Day as so
published on the next succeeding Business Day, and (b) if no such rate is so
published on such next succeeding Business Day, the Federal Funds Rate for such
day shall be the average rate (rounded upward, if necessary, to a whole multiple
of 1/100 of 1%) charged to Bank of America on such day on such transactions as
determined by the Administrative Agent.

     Fee Letter. The fee letter, dated as of April 13, 2006, among the Borrower,
the Administrative Agent and the Lead Arranger, as the same may be amended,
restated, supplemented or otherwise modified from time to time.

     Fees. Collectively, the Facility Fee, the Utilization Fee, the Letter of
Credit Fees, the Administrative Agency Fee and the Closing Fee.

     Final Maturity Date. June 2, 2011.

     Financial Affiliate. A Subsidiary of the bank holding company controlling
any Lender, which Subsidiary is engaging in any of the activities permitted by
Section 4(e) of the Bank Holding Company Act of 1956 (12 U.S.C. Section 1843).

     Fixed Charge Coverage Ratio. For any Reference Period, the ratio of (a)
Consolidated EBITDA for such period plus Consolidated Rental Expense for such
period to (b) Consolidated Total Interest Expense for such period plus
Consolidated Rental Expense for such period.

     Foreign Assets Control Regulation. See Section 6.15.

     Foreign Subsidiary. A Subsidiary which is not created or organized under
the laws of the United States of America, or any of its states (or the District
of Columbia) or any territory thereof.

     FRB. The Board of Governors of the Federal Reserve System of the United
States.

     Fronting Bank. The Administrative Agent or any Lender acceptable to the
Administrative Agent and the Borrower. As used herein, the term "Fronting Bank"
shall refer, as the context requires, to the Fronting Bank issuing, extending,
renewing or amending any particular Letter of Credit or collectively to each and
every Lender which acts as a Fronting Bank hereunder.

     Fund. Any Person (other than a natural person) that is (or will be) engaged
in making, purchasing, holding or otherwise investing in commercial loans and
similar extensions of credit in the ordinary course of its business.

     GAAP or generally accepted accounting principles. Principles that are
consistent with the principles promulgated or adopted by the Financial
Accounting Standards Board and its predecessors, as in effect from time to time.

<PAGE>

                                      -12-

     Governing Documents. With respect to any Person, its certificate or
articles of incorporation, its by-laws and all shareholder agreements, voting
trusts and similar arrangements applicable to any of its Capital Stock.

     Governmental Authority. The government of the United States or any other
nation, or of any political subdivision thereof, whether state or local, and any
agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government (including any
supra-national bodies such as the European Union or the European Central Bank).

     Guarantee. With respect to any Person, the act of guaranteeing, or any act
having the economic effect of guaranteeing or otherwise acting as surety for,
any obligation (other than endorsements for collection or deposit in the
ordinary course of business) (the "primary obligation") of another Person (the
"primary obligor"), in any manner, whether directly or indirectly, and
including, without limitation, any obligation of such Person (i) to purchase or
pay (or advance or supply funds for the purchase of) any security for the
payment of such primary obligation, (ii) to purchase property, securities or
services for the purpose of assuring the payment of such primary obligation, or
(iii) to maintain working capital, equity capital or other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such primary obligation. The "amount" or "principal amount" of
any obligations Guaranteed by any Person shall be an amount equal to the stated
or determinable amount of the primary obligation in respect of which such
guaranty or other contingent obligation is made or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof
(assuming such Person is required to perform thereunder) as determined by such
Person in good faith.

     Guaranteed Pension Plan. Any employee pension benefit plan within the
meaning of Section 3(2) of ERISA maintained or contributed to by the Borrower or
any ERISA Affiliate the benefits of which are guaranteed on termination in full
or in part by the PBGC pursuant to Title IV of ERISA, other than a Multiemployer
Plan.

     Hazardous Substances. Hazardous waste, as defined by 42 U.S.C. Section
6903(5), any hazardous substances as defined by 42 U.S.C. Section 9601(14), any
pollutant or contaminant as defined by 42 U.S.C. Section 9601(33) and any toxic
substances, oil or hazardous materials or other chemicals or substances
regulated by any Environmental Laws.

     Hong Kong Dollar or HK$. The lawful currency of Hong Kong.

     Honor Date. See Section 4.2.1.

     Indemnified Taxes. Taxes other than Excluded Taxes.

     Indemnitee. See Section 15.3.

     India Rupee or Rs. The lawful currency of India.

     Information. See Section 15.4.
<PAGE>

                                      -13-

     Interest Payment Date. (a) As to any Base Rate Loan, the first day of the
next succeeding calendar quarter with respect to interest accrued during the
immediately preceding calendar quarter, including, without limitation, the
calendar quarter which includes the Drawdown Date of such Base Rate Loan; and
(b) as to any Eurodollar Rate Loan in respect of which the Interest Period is
(i) three (3) months or less, the last day of such Interest Period and (ii) more
than three (3) months, the date that is three (3) months from the first day of
such Interest Period and, in addition, the last day of such Interest Period.

     Interest Period. (a) With respect to each Revolving Credit Loan which is a
Base Rate Loan, the period commencing on the Drawdown Date of such Base Rate
Loan and ending on the last day of each calendar quarter; and

          (b) With respect to each Revolving Credit Loan which is a Eurodollar
Rate Loan, the period commencing on the Drawdown Date of such Eurodollar Rate
Loan and ending fourteen (14) days, or one (1), two (2), three (3) or six (6)
months thereafter as determined in accordance with the provisions of this Credit
Agreement;

provided that all of the foregoing provisions relating to Interest Periods are
subject to the following:

               (i) if any Interest Period with respect to a Eurodollar Rate Loan
          would otherwise end on a day that is not a Eurodollar Business Day,
          that Interest Period shall be extended to the next succeeding
          Eurodollar Business Day unless the result of such extension would be
          to carry such Interest Period into another calendar month, in which
          event such Interest Period shall end on the immediately preceding
          Eurodollar Business Day;

               (ii) if any Interest Period with respect to a Base Rate Loan
          would end on a day that is not a Business Day, that Interest Period
          shall end on the next succeeding Business Day;

               (iii) if the Borrower shall fail to give notice as provided in
          Section 2.7, the Borrower shall be deemed to have requested a
          conversion of the affected Eurodollar Rate Loan to a Base Rate Loan
          and the continuance of all Base Rate Loans as Base Rate Loans on the
          last day of the then current Interest Period with respect thereto;

               (iv) any Interest Period relating to any Eurodollar Rate Loan
          (other than for a Eurodollar Rate Loan that has a fourteen (14) day
          Interest Period) that begins on the last Eurodollar 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 end on the last Eurodollar Business Day of a calendar
          month; and

               (v) any Interest Period that would otherwise extend beyond the
          Final Maturity Date shall end on the Final Maturity Date.

<PAGE>

                                      -14-

     Investment. Any investment in any Person, whether by means of share
purchase (other than the common stock of the Borrower), capital contribution,
loan, time deposit or otherwise.

     ISP. See Section 4.1.4.

     Issuer Documents. With respect to any Letter of Credit, the Letter of
Credit Application, and any other document, agreement and instrument entered
into by the Fronting Bank and the Borrower (or any Subsidiary) or in favor of
the Fronting Bank and relating to such Letter of Credit.

     Laws. Collectively, all international, foreign, Federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law, but if not having the force
of law, as based on the Administrative Agent's reasonable belief that each of
the above is consistent with prudent practice in the financial services industry
at that time.

     Lead Arranger. Banc of America Securities LLC.

     Lenders. Bank of America and the other lending institutions listed on
Schedule 1 hereto and any other Person who becomes an assignee of any rights and
obligations of a Lender pursuant to Section 14.

     Lending Office. The Domestic Lending Office or Eurodollar Lending Office of
a Lender, as applicable.

     Letter of Credit. See Section 4.1.1.

     Letter of Credit Application. See Section 4.1.2(a).

     Letter of Credit Borrowing. An extension of credit resulting from a drawing
under any Letter of Credit which has not been reimbursed on the date when made
or refinanced as a Committed Borrowing. Upon a Letter of Credit Borrowing, the
Unpaid Reimbursement Obligation that is covered by such Letter of Credit
Borrowing shall be deemed to be represented by, and not in addition to, such
Letter of Credit Borrowing.

     Letter of Credit Expiration Date. The day that is seven (7) days prior to
the Final Maturity Date then in effect (or, if such day is not a Business Day,
the next preceding Business Day).

     Letter of Credit Fees. Collectively, Standby Letter of Credit Fees and
Documentary Letter of Credit Fees.

     Letter of Credit Participation. See Section 4.2.2.

<PAGE>

                                      -15-

     Leverage Ratio. As at any date of determination, the ratio of (a)
Consolidated Total Funded Debt outstanding on such date to (b) Consolidated
EBITDA for the Reference Period ending on such date.

     Lien. Any mortgage, deed of trust, security interest, pledge,
hypothecation, attachment, encumbrance, lien (statutory, judgment or otherwise),
or other security agreement or preferential arrangement that has the practical
effect of creating a security interest of any kind or nature whatsoever
(including any conditional sale or other title retention agreement, any
Capitalized Lease, any Synthetic Lease, any financing lease involving
substantially the same economic effect as any of the foregoing and the filing of
any financing statement under the UCC or comparable law of any jurisdiction).

     Loan Account. With respect to (a) any Revolving Credit Loan, the records or
accounts kept by the Administrative Agent and any Lender with respect to such
Revolving Credit Loan and (b) any Swing Line Loan, the records or accounts kept
by the Administrative Agent and the Swing Line Lender with respect to such Swing
Line Loan.

     Loan Documents. This Credit Agreement, the Fee Letter, the Letter of Credit
Applications and the Letters of Credit.

     Loan Request. See Section 2.6.

     Loans. Collectively, the Revolving Credit Loans and the Swing Line Loans.

     Material Adverse Effect. A material adverse effect on the business or
financial condition, assets, operations or income of the Borrower and its
Subsidiaries, taken as a whole.

     Material Debt. See Section 12.1(f).

     Material Plan(s). A Guaranteed Pension Plan(s) having aggregate Unfunded
Liabilities in excess of $10,000,000.

     Maximum Drawing Amount. The Dollar Equivalent of the maximum aggregate
amount that the beneficiaries may at any time draw under outstanding Letters of
Credit, as such aggregate amount may be reduced from time to time pursuant to
the terms of the Letters of Credit; provided that with respect to any Letter of
Credit that, by its terms or the terms of any Issuer Document related thereto,
provides for one or more automatic increases in the stated amount thereof, the
Maximum Drawing Amount of such Letter of Credit shall be the Dollar Equivalent
of the maximum aggregate amount after giving effect to all such increases,
whether or not such maximum aggregate amount is in effect at such time.

     Maximum Swing Line Loan Amount. See Section 3.1.

     Moody's. Moody's Investors Services, Inc. and any successor thereto.

     Multiemployer Plan. Any multiemployer plan within the meaning of Section
3(37) of ERISA maintained or contributed to by the Borrower or any ERISA
Affiliate.

<PAGE>

                                      -16-

     New Zealand Dollar or NZ$. The lawful currency of New Zealand.

     Non-Extension Notice Date. See Section 4.1.2(c).

     Non-U.S. Lender. See Section 5.3.4.

     Norwegian Krone or NKr. The lawful currency of Norway.

     Note. A promissory note made by the Borrower in favor of a Lender
evidencing Loans made by such Lender, substantially in the form of Exhibit E.

     Obligations. All indebtedness, obligations and liabilities of any of the
Borrower and its Subsidiaries to any of the Lenders, any Fronting Bank and the
Administrative Agent, individually or collectively, existing on the date of this
Credit Agreement or arising thereafter, direct or indirect, joint or several,
absolute or contingent, matured or unmatured, liquidated or unliquidated,
secured or unsecured, arising by contract, operation of law or otherwise,
arising or incurred under this Credit Agreement or any of the other Loan
Documents or in respect of any of the Loans made or Reimbursement Obligations
incurred or any of the Letter of Credit Applications, Letters of Credit or other
instruments at any time evidencing any thereof.

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

     outstanding. With respect to the Loans, the aggregate unpaid principal
thereof as of any date of determination.

     Participant. See Section 14.4.

     Participating Member State. Each state so described in any EMU Legislation.

     Patriot Act. See Section 15.14.

     PBGC. The Pension Benefit Guaranty Corporation created by Section 4002 of
ERISA and any successor entity or entities having similar responsibilities.

     Permitted Acquisition. Any acquisition permitted by Section 8.5.1(b).

     Permitted Factoring Transaction. Any sale or other transfer by the Borrower
or any of its Subsidiaries of Factorable Receivables, which sale or transfer
does not involve the creation of any recourse obligation in respect thereof on
the part of the Borrower or any of its Subsidiaries (other than with respect to
matters of title to, and the character of (other than the collectability) of,
the Factorable Receivables so sold or transferred); provided that the aggregate
principal amount of Factorable Receivables that may be sold or transferred
pursuant to Permitted Factoring Transactions during any fiscal year of the
Borrower shall not exceed ten percent (10%) of Consolidated Total Assets.

<PAGE>

                                      -17-

     Person. Any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or
other entity.

     Platform. See Section 7.3.

     Pro Forma Basis. Pro Forma Basis shall mean (a) in connection with any
proposed acquisition to be made under Section 8.3, the calculation of compliance
with the financial covenants described in Section 9 by the Borrower including
the financial results of a Person, business or assets to be acquired as
determined in accordance with paragraph (i) below for the applicable fiscal
quarter of the Borrower, after giving effect on a pro forma basis in the manner
described below to such acquisition as if such acquisition had occurred at the
beginning of the most recently ended four fiscal quarter period for which
financial statements for the Borrower are then available and (b) following any
acquisition or disposition of any Person, business or assets permitted
hereunder, the calculation of compliance with the financial covenants described
in Section 9 (but, for the avoidance of doubt, not for the purposes of
calculating the Applicable Margin) by the Borrower for the fiscal quarter in
which such acquisition or disposition occurred and, with respect to any such
acquisition, each of the three fiscal quarters immediately following such
acquisition with reference to the financial results of such Person, business or
assets as determined in accordance with paragraph (i) below after giving effect
on a pro forma basis in the manner described below to such acquisition or
disposition as if such Person, business or assets had been acquired or disposed
of on the first day of the four fiscal quarter period tested:

          (i) Financial Results. In connection with any acquisition or
     disposition of any Person, business or assets described above, the Borrower
     shall provide to the Administrative Agent the audited (if available) or
     unaudited historical financial results of such Person, business or assets,
     if available, or the Borrower's good faith estimate of the same prepared by
     it based on reasonable assumptions and expectations of the financial
     performance of such Person, business or assets, which such estimates,
     assumptions and expectations shall have been reviewed and approved by the
     Administrative Agent (such approval not to be unreasonably withheld) (the
     "financial results").

          (ii) Acquired EBITDA. In determining Consolidated EBITDA for any
     period, there shall be (i) included in such Consolidated EBITDA all EBITDA
     attributable to any Person, business or assets acquired by (and thereafter
     owned by) the Borrower during such period and (ii) excluded from such
     Consolidated EBITDA all EBITDA attributable to any Person, business or
     assets disposed of by the Borrower during such period. For purposes hereof,
     the EBITDA attributable to any such acquired or disposed Person, business
     or assets prior to the date of acquisition or disposition thereof shall be
     determined in a manner consistent with the method for determining
     Consolidated EBITDA, but on a non-consolidated basis.

          (iii) Indebtedness. All indebtedness (whether under this Credit
     Agreement or otherwise) and any other balance sheet adjustments incurred or
     made, or in the case of a disposition, repaid, in connection with an
     acquisition or disposition permitted hereunder shall be deemed to have been
     incurred, made or repaid on the first day of the fiscal quarter described
     in each of clause (a) and clause (b) above, and all indebtedness of the
     acquired Person, business or assets which was or will have been repaid in
     connection

<PAGE>

                                      -18-

     with the consummation of such acquisition shall be deemed to have been
     repaid concurrently with the incurrence of the indebtedness incurred in
     connection with such acquisition.

          (iv) Interest. All indebtedness assumed to have been incurred pursuant
     to the preceding paragraph (iii) shall be deemed to have borne interest at
     (a) the interest rate applicable to such indebtedness, if such interest
     rate can be determined, or (b) the sum of (i) the arithmetic mean of (x)
     the Eurodollar Rate for Eurodollar Rate Loans having an Interest Period of
     one month in effect on the first day of the applicable period and (y) the
     Eurodollar Rate for Eurodollar Rate Loans having an Interest Period of one
     month in effect on the last day of the applicable period plus (ii) the
     Applicable Margin then in effect (after giving effect to such acquisition
     or disposition, as the case may be, on a Pro Forma Basis).

     Public Lender. See Section 7.3.

     Real Estate. All real property at any time owned or leased (as lessee or
sublessee) by the Borrower or any of its Subsidiaries.

     Reference Period. As of any date of determination, the period of four (4)
consecutive fiscal quarters of the Borrower and its Subsidiaries ending on such
date, or if such date is not a fiscal quarter end date, the period of four (4)
consecutive fiscal quarters most recently ended (in each case treated as a
single accounting period).

     Register. See Section 14.3.

     Reimbursement Obligation. The Borrower's obligation to reimburse the
Fronting Bank and the Lenders on account of any drawing under any Letter of
Credit as provided in Section 4.2.

     Related Parties. With respect to any Person, such Person's Affiliates and
the partners, directors, officers, employees, agents and advisors of such Person
and of such Person's Affiliates.

     Replacement Lender. See Section 5.10.

     Replacement Notice. See Section 5.10.

     Required Lenders. As of any date, the Lenders whose aggregate Commitments
total greater than fifty percent (50%) of the Total Commitment.

     Restricted Payment. In relation to the Borrower and its Subsidiaries, any
(a) Distribution, (b) payment by the Borrower or its Subsidiaries to the
Borrower's or any Subsidiary's shareholders (or other equity holders), in each
case, other than to the Borrower, or to any Affiliate of the Borrower or any
Subsidiary or any Affiliate of the Borrower's or such Subsidiary's shareholders
(or other equity holders) or (c) Equity Related Purchase Obligation.

     Revaluation Date. With respect to any Letter of Credit, each of the
following: (i) each date of issuance of a Letter of Credit denominated in an
Alternative Currency, (ii) each date of an
<PAGE>

                                      -19-

amendment of any such Letter of Credit having the effect of increasing the
amount thereof (solely with respect to the increased amount), (iii) each date of
any payment by the Fronting Bank under any Letter of Credit denominated in an
Alternative Currency, (iv) the first Business Day of each month, (iv) in the
case of the Existing Letters of Credit, June 2, 2006, and (v) such additional
dates as the Administrative Agent or the Fronting Bank shall reasonably
determine or the Required Lenders shall reasonably require, based on changes in
the relative values of the affected currencies.

     Revolving Credit Loan(s). Singly, any of, and collectively, all of, the
revolving credit loans made by the Lenders in accordance with their respective
Commitment Percentages to the Borrower as contemplated by Section 2.1 hereof.
All Revolving Credit Loans shall be denominated in Dollars.

     Singapore Dollar or S$. The lawful currency of Singapore.

     S&P. Standard & Poor's Ratings Services, a division of The McGraw-Hill
Companies, Inc. and any successor thereto.

     SPC. See Section 14.8.

     Spot Rate. For a currency, the rate determined by the Administrative Agent
or the Fronting Bank, as applicable, to be the rate quoted by the Person acting
in such capacity as the spot rate for the purchase by such Person of such
currency with another currency through its principal foreign exchange trading
office at approximately 11:00 a.m. on the date two (2) Business Days prior to
the date as of which the foreign exchange computation is made; provided that the
Administrative Agent or the Fronting Bank may obtain such spot rate from another
financial institution designated by the Administrative Agent or the Fronting
Bank if the Person acting in such capacity does not have as of the date of
determination a spot buying rate for any such currency; and provided further
that the Fronting Bank may use such spot rate quoted on the date as of which the
foreign exchange computation is made in the case of any Letter of Credit
denominated in an Alternative Currency.

     Standby Letter of Credit Fee. See Section 4.6.

     Sterling and L. The lawful currency of the United Kingdom.

     Subsidiary. Any corporation, association, trust, or other business entity
of which the designated parent shall at any time own directly or indirectly
through a Subsidiary or Subsidiaries at least a majority (by number of votes) of
the outstanding Voting Stock.

     Subsidiary Letters of Credit. Trade letters of credit issued for the
account of the Foreign Subsidiaries of the Borrower by any of the Lenders under
their respective letter of credit facilities.

     Swedish Krone or Sk. The lawful currency of Sweden.

     Swing Line Lender. Bank of America or a successor Swing Line Lender.

<PAGE>

                                      -20-

     Swing Line Loan. A Revolving Credit Loan made by the Swing Line Lender
pursuant to Section 3.1 hereof.

     Swing Line Loan Maturity Date. See Section 3.2.

     Swing Line Loan Request. See Section 3.2.

     Swiss Franc or SwF. The lawful currency of Switzerland.

     Synthetic Lease. Any lease of goods or other property, whether real or
personal, which is treated as an operating lease under GAAP and as a loan or
financing for U.S. income tax purposes.

     Taxes. All present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental
Authority, including any interest, additions to tax or penalties applicable
thereto.

     Thai Baht or Bht. The lawful currency of Thailand.

     Total Commitment. The sum of the Commitments of the Lenders, as in effect
from time to time.

     Trading With the Enemy Act. See Section 6.15.

     Type. As to any Revolving Credit Loan, its nature as a Base Rate Loan or a
Eurodollar Rate Loan.

     UCP. See Section 4.1.4.

     Unfunded Liabilities. With respect to any Guaranteed Pension Plan at any
time, the amount by which (if any) (i) the value of all benefit liabilities
under such Guaranteed Pension Plan, determined on a plan termination basis using
all of the assumptions prescribed by the PBGC for purposes of Section 4044 of
ERISA, exceeds (ii) the fair market value of all Guaranteed Pension Plan assets
allocable to such liabilities under Title IV of ERISA (excluding any accrued but
unpaid contributions), but only to the extent that such excess represents a
potential liability of the Borrower or any ERISA Affiliate to the PBGC or any
other Person under Title IV of ERISA.

     Unpaid Reimbursement Obligation. Any Reimbursement Obligation for which the
Borrower does not reimburse the Fronting Bank and the Lenders on the date
specified in, and in accordance with, Section 4.2. Upon a Letter of Credit
Borrowing, the Unpaid Reimbursement Obligation that is covered by such Letter of
Credit Borrowing shall be deemed to be represented by, and not in addition to,
such Letter of Credit Borrowing.

     Utilization Fee. See Section 2.2.2.

     Voting Stock. Stock or similar interests, of any class or classes (however
designated), the holders of which are at the time entitled, as such holders, to
vote for the election of a majority of the directors (or persons performing
similar functions) of the corporation, association, trust or

<PAGE>

                                      -21-

other business entity involved, whether or not the right so to vote exists by
reason of the happening of a contingency.

     Yen and Y. The lawful currency of Japan.

     1.2. RULES OF INTERPRETATION.

          (a) A reference to any document or agreement shall include such
     document or agreement as amended, modified or supplemented from time to
     time in accordance with its terms and the terms of this Credit Agreement.

          (b) The singular includes the plural and the plural includes the
     singular.

          (c) A reference to any law includes any amendment or modification to
     such law.

          (d) A reference to any Person includes its permitted successors and
     permitted assigns.

          (e) Accounting terms not otherwise defined herein have the meanings
     assigned to them by GAAP applied on a consistent basis by the accounting
     entity to which they refer.

          (f) The words "include", "includes" and "including" are not limiting.

          (g) All terms not specifically defined herein or by GAAP, which terms
     are defined in the Uniform Commercial Code as in effect in the State of New
     York, have the meanings assigned to them therein, with the term
     "instrument" being that defined under Article 9 of the Uniform Commercial
     Code.

          (h) Reference to a particular "Section" refers to that section of this
     Credit Agreement unless otherwise indicated.

          (i) The words "herein", "hereof", "hereunder" and words of like import
     shall refer to this Credit Agreement as a whole and not to any particular
     section or subdivision of this Credit Agreement.

          (j) Unless otherwise expressly indicated, in the computation of
     periods of time from a specified date to a later specified date, the word
     "from" means "from and including," the words "to" and "until" each mean "to
     but excluding," and the word "through" means "to and including."

          (k) This Credit Agreement and the other Loan Documents may use several
     different limitations, tests or measurements to regulate the same or
     similar matters. All such limitations, tests and measurements are, however,
     cumulative and are to be performed in accordance with the terms thereof.
<PAGE>

                                      -22-

          (l) This Credit Agreement and the other Loan Documents are the result
     of negotiation among, and have been reviewed by counsel to, among others,
     the Administrative Agent and the Borrower and are the product of
     discussions and negotiations among all parties.

     1.3. ADDITIONAL ALTERNATIVE CURRENCIES.

          (a) The Borrower may from time to time request that Letters of Credit
     be issued in a currency other than those specifically listed in the
     definition of "Alternative Currency;" provided that such requested currency
     is a lawful currency (other than Dollars) that is readily available and
     freely transferable and convertible into Dollars. Such request shall be
     subject to the approval of the Administrative Agent and the Fronting Bank.

          (b) Any such request shall be made to the Administrative Agent not
     later than 11:00 a.m., twenty (20) Business Days prior to the date of the
     desired Letter of Credit Borrowing (or such other time or date as may be
     agreed by the Administrative Agent and the Fronting Bank, in their sole
     discretion). The Administrative Agent shall promptly notify the Fronting
     Bank of any such request thereof. The Fronting Bank shall notify the
     Administrative Agent, not later than 11:00 a.m., ten (10) Business Days
     after receipt of such request whether it consents, in its sole discretion,
     to the issuance of Letters of Credit in such requested currency.

          (c) Any failure by the Fronting Bank to respond to such request within
     the time period specified in the preceding sentence shall be deemed to be a
     refusal by the Fronting Bank to permit Letters of Credit to be issued in
     such requested currency. If the Administrative Agent and the Fronting Bank
     consent to the issuance of Letters of Credit in such requested currency,
     the Administrative Agent shall so notify the Borrower and such currency
     shall thereupon be deemed for all purposes to be an Alternative Currency
     hereunder for purposes of any Letter of Credit issuances. If the
     Administrative Agent shall fail to obtain consent to any request for an
     additional currency under this Section 1.3, the Administrative Agent shall
     promptly so notify the Borrower. Any specified currency of an Existing
     Letter of Credit that is neither Dollars nor one of the Alternative
     Currencies specifically listed in the definition of "Alternative Currency"
     shall be deemed an Alternative Currency with respect to such Existing
     Letter of Credit only.

     1.4. CHANGE OF CURRENCY.

          (a) Each obligation of the Borrower to make a payment denominated in
     the national currency unit of any member state of the European Union that
     adopts the Euro as its lawful currency after the date hereof shall be
     redenominated into Euro at the time of such adoption (in accordance with
     the EMU Legislation). If, in relation to the currency of any such member
     state, the basis of accrual of interest expressed in this Credit Agreement
     in respect of that currency shall be inconsistent with any convention or
     practice in the London interbank market for the basis of accrual of
     interest in respect of the Euro, such expressed basis shall be replaced by
     such convention or practice with effect from the date on which such member
     state adopts the Euro as its lawful currency.

<PAGE>

                                      -23-

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

          (c) Each provision of this Credit Agreement also shall be subject to
     such reasonable changes of construction as the Administrative Agent may
     from time to time specify to be appropriate to reflect a change in currency
     of any other country and any relevant market conventions or practices
     relating to the change in currency.

     1.5. EXCHANGE RATES; CURRENCY EQUIVALENTS.

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

          (b) Wherever in this Credit Agreement in connection with the issuance,
     amendment or extension of a Letter of Credit, an amount, such as a required
     minimum or multiple amount, is expressed in Dollars, but such Letter of
     Credit is denominated in an Alternative Currency, such amount shall be the
     relevant Alternative Currency Equivalent of such Dollar amount (rounded to
     the nearest unit of such Alternative Currency, with 0.5 of a unit being
     rounded upward), as determined by the Administrative Agent or the Fronting
     Bank, as the case may be.

     1.6. TIMES OF DAY. Unless otherwise specified, all references herein to
times of day shall be references to U.S. Eastern time (daylight or standard, as
applicable).

     1.7. LETTER OF CREDIT AMOUNTS. Unless otherwise specified herein, the
amount of a Letter of Credit at any time shall be deemed to be the Maximum
Drawing Amount.

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

<PAGE>

                                      -24-

reconciliation between calculations of such ratio or requirement made before and
after giving effect to such change in GAAP.

                        2. THE REVOLVING CREDIT FACILITY.

     2.1. COMMITMENT TO LEND. Subject to the terms and conditions set forth in
this Credit Agreement, each of the Lenders severally agrees to lend to the
Borrower and the Borrower may borrow, repay, and reborrow from time to time from
the Closing Date to the Final Maturity Date upon notice by the Borrower to the
Administrative Agent given in accordance with Section 2.6, such sums, in
Dollars, as are requested by the Borrower up to a maximum aggregate amount
outstanding (after giving effect to all amounts requested) at any one time equal
to such Lender's Commitment minus such Lender's Commitment Percentage of the sum
of the Maximum Drawing Amount and all Unpaid Reimbursement Obligations; provided
that the sum of the outstanding amount of the Loans (after giving effect to all
amounts requested) plus the Maximum Drawing Amount and all Unpaid Reimbursement
Obligations shall not at any time exceed the Total Commitment at such time. The
Revolving Credit Loans shall be made pro rata in accordance with each Lender's
Commitment Percentage. Each request for a Revolving Credit Loan hereunder shall
constitute a representation and warranty by the Borrower that the conditions set
forth in Section 10 and Section 11, in the case of the initial Revolving Credit
Loans to be made on the Closing Date, and Section 11, in the case of all other
Revolving Credit Loans, have been satisfied on the date of such request.

     2.2. FEES.

          2.2.1. FACILITY FEE. The Borrower agrees to pay to the Administrative
     Agent for the accounts of the Lenders in accordance with their respective
     Commitment Percentages a facility fee (the "Facility Fee") calculated at
     the rate per annum of the Applicable Margin with respect to the Facility
     Fee as in effect from time to time on the Total Commitment. The Facility
     Fee shall be payable quarterly in arrears on the first day of each calendar
     quarter for the immediately preceding calendar quarter (or portion thereof)
     commencing on the first such date following the date hereof, with a final
     payment on the Final Maturity Date or any earlier date on which the
     Commitments shall terminate.

          2.2.2. UTILIZATION FEE. The Borrower agrees to pay to the
     Administrative Agent for the accounts of the Lenders in accordance with
     their respective Commitment Percentages a utilization fee (the "Utilization
     Fee") calculated at the rate per annum of the Applicable Margin with
     respect to the Utilization Fee as in effect from time to time on all
     outstanding Loans and Letters of Credit under this Credit Agreement for
     each day on which the aggregate of the outstanding Loans (including Swing
     Line Loans) plus the aggregate available Maximum Drawing Amount of all
     outstanding Letters of Credit and Unpaid Reimbursement Obligations exceeds
     fifty percent (50%) of the Total Commitment. The Utilization Fee shall be
     payable quarterly in arrears on the first day of each calendar quarter for
     the immediately preceding calendar quarter (or portion thereof) commencing
     on the first such date following the date hereof, with a final payment on
     the Final Maturity Date or any earlier date on which the Commitments shall
     terminate.

<PAGE>

                                      -25-

     2.3. CHANGE OF TOTAL COMMITMENT.

          (a) The Borrower shall have the right at any time and from time to
     time upon five (5) Business Days prior written notice to the Administrative
     Agent to reduce by $5,000,000 or an integral multiple of $1,000,000 in
     excess thereof or to terminate entirely the Total Commitment, whereupon the
     Commitments of the Lenders shall be reduced pro rata in accordance with
     their respective Commitment Percentages of the amount specified in such
     notice or, as the case may be, terminated. Promptly after receiving any
     notice of the Borrower delivered pursuant to this Section 2.3, the
     Administrative Agent will notify the Lenders of the substance thereof. Upon
     the effective date of any such reduction or termination, the Borrower shall
     pay to the Administrative Agent for the respective accounts of the Lenders
     the full amount of any Facility Fee then accrued to the date of reduction
     on the amount of the reduction. No reduction or termination of the
     Commitments may be reinstated.

          (b) So long as no Default or Event of Default shall have occurred and
     be continuing, and subject to all terms and conditions set forth herein,
     the Borrower may request, by prior written notice to the Administrative
     Agent, that the Total Commitment be increased to an aggregate amount not to
     exceed $300,000,000. The Borrower may, after initially requesting the
     existing Lenders to increase on a pro rata basis their respective
     Commitments and after receiving confirmation in writing that such Lenders
     do not wish to increase their respective Commitments (or if the aggregate
     desired increase in Commitments by the existing Lenders is not sufficient
     to satisfy the increase in Total Commitment requested by the Borrower),
     solicit one or more Eligible Assignees satisfactory to the Administrative
     Agent to become new Lenders; provided that (a) each Person that becomes a
     new Lender shall agree to become a party to, and shall assume and agree to
     be bound by, this Credit Agreement, subject to all terms and conditions
     thereof; (b) no Lender shall have an obligation to the Borrower to increase
     its Commitment; and (c) in no event shall the Total Commitment be increased
     under this Section 2.3 to an amount greater than $300,000,000. Each of the
     Lenders agrees that after an increase in the Total Commitment hereunder,
     the Administrative Agent may, without further consent of the Lenders, amend
     Schedule 1 to reflect such increase and may amend the Credit Agreement and
     the other Loan Documents to make such conforming changes to the Credit
     Agreement and the other Loan Documents as the Administrative Agent may
     determine are necessary and adjust the Commitment Percentages of the
     Lenders.

     2.4. LOAN ACCOUNT. The Revolving Credit Loans and the Obligations of the
Borrower in respect thereof shall be evidenced by one or more Loan Accounts
maintained by the Administrative Agent and by each Lender in the ordinary course
of business. The Loan Accounts maintained by the Administrative Agent and each
Lender shall be conclusive absent manifest error of the amount of the Revolving
Credit Loans made by the Lenders to the Borrower and the interest and payments
thereon. Any failure to so record or any error in doing so shall not, however,
limit or otherwise affect the obligation of the Borrower hereunder to pay any
amount owing with respect to the Obligations. In the event of any conflict
between the Loan Accounts maintained by any Lender and the Loan Accounts of the
Administrative Agent in respect of such matters, the accounts and records of the
Administrative Agent shall control in the absence of manifest error. Upon the
request of any Lender made through the Administrative

<PAGE>

                                      -26-

Agent, the Borrower shall execute and deliver to such Lender (through the
Administrative Agent) a Note, which shall evidence such Lender's Revolving
Credit Loans in addition to such Loan Accounts. Each Lender may attach schedules
to its Note and endorse thereon the date, Type (if applicable), amount and
maturity of its Revolving Credit Loans and payments with respect thereto.

     2.5. INTEREST ON REVOLVING CREDIT LOANS. Except as otherwise provided in
Section 5.9, at the Borrower's option, each Revolving Credit Loan shall bear
interest at a rate equal to (i) the Eurodollar Rate plus the Applicable Margin
with respect to Eurodollar Rate Loans or (ii) the Base Rate. The Borrower
promises to pay interest on each Revolving Credit Loan in arrears on each
Interest Payment Date with respect thereto.

     2.6. REQUESTS FOR REVOLVING CREDIT LOANS. The Borrower shall give to the
Administrative Agent written notice in the form of Exhibit A hereto (or
telephonic notice confirmed in a writing in the form of Exhibit A hereto) of
each Revolving Credit Loan requested hereunder (a "Loan Request") (a) on or
prior to 1:00 p.m. (New York time) on the proposed Drawdown Date of any Base
Rate Loan and (b) by 1:00 p.m. (New York time) on or prior to the third
Eurodollar Business Days prior to the proposed Drawdown Date of any Eurodollar
Rate Loan; provided, however, that if the Borrower wishes to request Eurodollar
Rate Loans having an Interest Period other than fourteen (14) days, one (1), two
(2), three (3) or six (6) months in duration as provided in the definition of
"Interest Period", the applicable notice must be received by the Administrative
Agent not later than 1:00 p.m. four (4) Business Days prior to the proposed
Drawdown Date of such Eurodollar Rate Loans, whereupon the Administrative Agent
shall give prompt notice to the Lenders of such request and determine whether
the requested Interest Period is acceptable to all of them. Not later than 1:00
p.m., three (3) Business Days prior to the proposed Drawdown Date of such
Eurodollar Rate Loans, the Administrative Agent shall notify the Borrower (which
notice may be by telephone) whether or not the requested Interest Period has
been consented to by all the Lenders.. Each such notice shall specify (i) the
principal amount of the Revolving Credit Loan requested, (ii) the proposed
Drawdown Date of such Revolving Credit Loan, (iii) the Interest Period for such
Revolving Credit Loan and (iv) the Type of such Revolving Credit Loan. Promptly
upon receipt of any such notice, the Administrative Agent shall notify each of
the Lenders thereof. If the Borrower fails to specify a Type of Revolving Credit
Loan in a Loan Request, then the applicable Revolving Credit Loans shall be made
as Base Rate Loans. Each Loan Request shall be irrevocable and binding on the
Borrower and shall obligate the Borrower to accept the Revolving Credit Loan
requested from the Lenders on the proposed Drawdown Date. Each Loan Request for
a Base Rate Loan shall be in a minimum aggregate amount of $500,000 or an
integral multiple of $100,000 in excess thereof. Each Loan Request for a
Eurodollar Rate Loan shall be in a minimum aggregate amount of $1,000,000 or an
integral multiple of $500,000 in excess thereof.

     2.7. CONVERSION OPTIONS.

          2.7.1. CONVERSION TO DIFFERENT TYPE OF REVOLVING CREDIT LOAN. The
     Borrower may elect from time to time to convert any outstanding Revolving
     Credit Loan to a Revolving Credit Loan of another Type, provided that (a)
     with respect to any such conversion of a Eurodollar Rate Loan to a Base
     Rate Loan, the Borrower shall give the Administrative Agent written notice,
     in the form of a Conversion Request (or telephonic

<PAGE>

                                      -27-

     notice confirmed in a writing in the form of the Conversion Request) not
     later than 1:00 p.m. (New York time) three (3) Business Days prior to such
     election; (b) with respect to any such conversion of a Base Rate Loan to a
     Eurodollar Rate Loan, the Borrower shall give the Administrative Agent
     written notice in the form of a Conversion Request (or telephonic notice
     confirmed in a writing in the form of the Conversion Request) not later
     than 1:00 p.m. (New York time) three (3) Eurodollar Business Days prior to
     such election, provided, however, that if the Borrower wishes to request a
     Eurodollar Rate Loan having an Interest Period other than fourteen (14)
     days, one (1), two (2), three (3) or six (6) months in duration as provided
     in the definition of "Interest Period", the applicable notice must be
     received by the Administrative Agent not later than 1:00 p.m. four (4)
     Eurodollar Business Days prior to the proposed Drawdown Date of such
     Eurodollar Rate Loan, whereupon the Administrative Agent shall give prompt
     notice to the Lenders of such request and determine whether the requested
     Interest Period is acceptable to all of them; (c) with respect to any such
     conversion of a Eurodollar Rate Loan into a Base Rate Loan, such conversion
     shall only be made on the last day of the Interest Period with respect
     thereto and (d) no Revolving Credit Loan may be converted into a Eurodollar
     Rate Loan when any Default or Event of Default has occurred and is
     continuing without the consent of the Required Lenders. On the date on
     which such conversion is being made each Lender shall take such action as
     is necessary to transfer its Commitment Percentage of such Revolving Credit
     Loans to its Domestic Lending Office or its Eurodollar Lending Office, as
     the case may be. All or any part of outstanding Revolving Credit Loans of
     any Type may be converted into a Revolving Credit Loan of another Type as
     provided herein, provided that (i) any partial conversion of a Base Rate
     Loan into a Eurodollar Rate Loan shall be in an aggregate principal amount
     of $1,000,000 or a whole multiple of $500,000 in excess thereof and (ii)
     any partial conversion of a Eurodollar Rate Loan into a Base Rate Loan
     shall be in an aggregate principal amount of $500,000 or a whole multiple
     of $100,000 in excess thereof. Each Conversion Request relating to the
     conversion of a Base Rate Loan to a Eurodollar Rate Loan shall be
     irrevocable by the Borrower.

          2.7.2. CONTINUATION OF TYPE OF REVOLVING CREDIT LOAN. Any Revolving
     Credit Loan of any Type may be continued as a Revolving Credit Loan of the
     same Type upon the expiration of an Interest Period with respect thereto by
     compliance by the Borrower with the notice provisions contained in Section
     2.7.1; provided that no Eurodollar Rate Loan may be continued as such when
     any Event of Default has occurred and is continuing without the consent of
     the Required Lenders. If the Required Lenders do not consent, the
     Eurodollar Rate Loan shall be automatically converted to a Base Rate Loan
     on the last day of the first Interest Period relating thereto ending during
     the continuance of any Event of Default of which officers of the
     Administrative Agent active upon the Borrower's account have actual
     knowledge. In the event that the Borrower fails to provide any such notice
     with respect to the continuation of any Eurodollar Rate Loan as such, then
     such Eurodollar Rate Loan shall be automatically converted to a Base Rate
     Loan on the last day of the first Interest Period relating thereto. The
     Administrative Agent shall notify the Lenders promptly when any such
     automatic conversion contemplated by this Section 2.7.2 is scheduled to
     occur.

<PAGE>

                                      -28-

          2.7.3. EURODOLLAR RATE LOANS. Any conversion to or from Eurodollar
     Rate Loans shall be in such amounts and be made pursuant to such elections
     so that, after giving effect thereto, the aggregate principal amount of all
     Eurodollar Rate Loans having the same Interest Period shall not be less
     than $1,000,000 or a whole multiple of $500,000 in excess thereof.

          2.7.4. APPLICABILITY OF CONVERSION AND CONTINUATION PROVISIONS TO
     SWING LINE LOANS. Notwithstanding anything to the contrary contained
     herein, the provisions of this Section 2.7 shall not apply to Swing Line
     Loans.

     2.8. FUNDS FOR REVOLVING CREDIT LOANS.

          2.8.1. FUNDING PROCEDURES. Not later than 3:00 p.m. (New York time) on
     the proposed Drawdown Date of any Revolving Credit Loans, each of the
     Lenders will make available to the Administrative Agent, at the
     Administrative Agent's Office, in immediately available funds, the amount
     of such Lender's Commitment Percentage of the amount of the requested
     Revolving Credit Loans. Upon receipt from each Lender of such amount, and
     upon receipt of the documents required by Section 10 for the Closing Date
     and Section 11 thereafter and the satisfaction of the other conditions set
     forth therein, to the extent applicable, the Administrative Agent will make
     available to the Borrower, in immediately available funds, the aggregate
     amount of such Revolving Credit Loans made available to the Administrative
     Agent by the Lenders. The failure or refusal of any Lender to make
     available to the Administrative Agent at the aforesaid time and place on
     any Drawdown Date the amount of its Commitment Percentage of the requested
     Revolving Credit Loans shall not relieve any other Lender from its several
     obligation hereunder to make available to the Administrative Agent the
     amount of such other Lender's Commitment Percentage of any requested
     Revolving Credit Loans.

          2.8.2. FUNDING BY LENDERS; PRESUMPTION BY ADMINISTRATIVE AGENT. Unless
     the Administrative Agent shall have received notice from a Lender prior to
     the Drawdown Date of any Committed Borrowing of Eurodollar Rate Loans (or,
     in the case of any Committed Borrowing of Base Rate Loans, prior to 12:00
     noon on the date of such Committed Borrowing) that such Lender will not
     make available to the Administrative Agent such Lender's share of such
     Committed Borrowing, the Administrative Agent may assume that such Lender
     has made such share available on such date in accordance with Section 2.8.1
     (or, in the case of a Committed Borrowing of Base Rate Loans, that such
     Lender has made such share available in accordance with and at the time
     required by Section 2.8.1) and may, in reliance upon such assumption, make
     available to the Borrower a corresponding amount. In such event, if a
     Lender has not in fact made its share of the applicable Committed Borrowing
     available to the Administrative Agent, then the applicable Lender and the
     Borrower severally agree to pay to the Administrative Agent forthwith on
     demand such corresponding amount in immediately available funds with
     interest thereon, for each day from and including the date such amount is
     made available to the Borrower but excluding the date of payment to the
     Administrative Agent, at (i) in the case of a payment to be made by such
     Lender, the greater of the Federal Funds Rate and a rate determined by the
     Administrative Agent in accordance with banking industry rules on interbank
     compensation, plus any administrative, processing or similar fees
     customarily

<PAGE>

                                      -29-

     charged by the Administrative Agent in connection with the foregoing, and
     (ii) in the case of a payment to be made by the Borrower, the interest rate
     applicable to Base Rate Loans. If the Borrower and such Lender shall pay
     such interest to the Administrative Agent for the same or an overlapping
     period, the Administrative Agent shall promptly remit to the Borrower the
     amount of such interest paid by the Borrower for such period. If such
     Lender pays its share of the applicable Loan to the Administrative Agent,
     then the amount so paid shall constitute such Lender's Commitment included
     in such Committed Borrowing. Any payment by the Borrower shall be without
     prejudice to any claim the Borrower may have against a Lender that shall
     have failed to make such payment to the Administrative Agent.

          2.8.3. PAYMENTS BY BORROWER; PRESUMPTIONS BY ADMINISTRATIVE AGENT.
     Unless the Administrative Agent shall have received notice from the
     Borrower prior to the date on which any payment is due to the
     Administrative Agent for the account of the Lenders or the Fronting Bank
     hereunder that the Borrower will not make such payment, the Administrative
     Agent may assume that the Borrower has made such payment on such date in
     accordance herewith and may, in reliance upon such assumption, distribute
     to the Lenders or the Fronting Bank, as the case may be, the amount due. In
     such event, if the Borrower has not in fact made such payment, then each of
     the Lenders or the Fronting Bank, as the case may be, severally agrees to
     repay to the Administrative Agent forthwith on demand the amount so
     distributed to such Lender or the Fronting Bank, in immediately available
     funds with interest thereon, for each day from and including the date such
     amount is distributed to it to but excluding the date of payment to the
     Administrative Agent, at the greater of the Federal Funds Rate and a rate
     determined by the Administrative Agent in accordance with banking industry
     rules on interbank compensation.

          A notice of the Administrative Agent to any Lender or the Borrower
     with respect to any amount owing under Sections 2.8.2 or 2.8.3 shall be
     conclusive, absent manifest error.

     2.9. FAILURE TO SATISFY CONDITIONS PRECEDENT. If any Lender makes available
to the Administrative Agent funds for any Loan to be made by such Lender as
provided in the foregoing provisions of this Section 2, and such funds are not
made available to the Borrower by the Administrative Agent because the
conditions to the making of such Loan set forth in Section 11 or Section 12, as
applicable, are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from
such Lender) to such Lender, without interest.

     2.10. FUNDING SOURCE. Nothing herein shall be deemed to obligate any Lender
to obtain the funds for any Loan in any particular place or manner or to
constitute a representation by any Lender that it has obtained or will obtain
the funds for any Loan in any particular place or manner.

     2.11. OPTIONAL PREPAYMENTS. The Borrower shall have the right, at its
election, to repay the outstanding amount of the Revolving Credit Loans, as a
whole or in part, at any time without penalty or premium (including, without
limitation, Section 5.8), provided that the Borrower shall comply with Section
5.8 as a result of any Eurodollar Rate Loan being repaid in whole or in part

<PAGE>

                                      -30-

prior to the last day of the Interest Period relating thereto. The Borrower
shall give the Administrative Agent (a) no later than 11:00 a.m. (New York time)
on the proposed date of prepayment, written notice of any proposed prepayment
pursuant to this Section 2.11 of Base Rate Loans, and (b) notice by 11:00 a.m.
(New York time) on the third Eurodollar Business Day prior to the date of
proposed prepayment pursuant to this Section 2.11 of Eurodollar Rate Loans, in
each case specifying the proposed date of prepayment of Revolving Credit Loans
and the principal amount to be prepaid. Each such partial prepayment of the
Revolving Credit Loans shall be in an integral multiple of $1,000,000 or an
integral multiple of $500,000 in excess thereof, shall be accompanied by the
payment of accrued interest on the principal prepaid to the date of prepayment
and shall be applied, in the absence of instruction by the Borrower, first to
the principal of Base Rate Loans and then to the principal of Eurodollar Rate
Loans. Each partial prepayment shall be allocated among the Lenders, in
proportion, as nearly as practicable, to the respective unpaid principal amount
of each Lender's Revolving Credit Loan, with adjustments to the extent
practicable to equalize any prior repayments not exactly in proportion.

     2.12. MANDATORY REPAYMENTS. If at any time the sum of the outstanding
amount of the Loans, the Maximum Drawing Amount and all Unpaid Reimbursement
Obligations exceeds the Total Commitment at such time, then the Borrower shall
immediately (i) pay the amount of such excess to the Administrative Agent for
the respective accounts of the Lenders for application: first, to any Unpaid
Reimbursement Obligations; second, to the Swing Line Loans; third, to the
Revolving Credit Loans; and fourth, to provide to the Administrative Agent cash
collateral for Reimbursement Obligations as contemplated by Section 4.2 and/or
(ii) Cash Collateralize the Maximum Drawing Amount of any outstanding Letters of
Credit and the Unpaid Reimbursement Obligations in an aggregate amount equal to
such excess, (i) or (ii) being at the option of the Borrower, provided, however,
that the Borrower shall not be required to Cash Collateralize the Unpaid
Reimbursement Obligations pursuant to this Section 2.12 unless after the payment
in full of the Loans the total outstanding Obligations exceed the Total
Commitment then in effect. Each payment of any Unpaid Reimbursement Obligations
or prepayment of Revolving Credit Loans shall be allocated among the Lenders, in
proportion, as nearly as practicable, to each Reimbursement Obligation or (as
the case may be) the respective unpaid principal amount of each Lender's
Revolving Credit Loan, with adjustments to the extent practicable to equalize
any prior payments or repayments not exactly in proportion. Further, the
Borrower promises to pay on the Final Maturity Date, and there shall become
absolutely due and payable on the Final Maturity Date, all of the Loans
outstanding on such date, together with any and all accrued and unpaid interest
thereon.

                               3. THE SWING LINE.

     3.1. THE SWING LINE LOANS. Subject to the terms and conditions hereinafter
set forth, upon notice by the Borrower made to the Swing Line Lender in
accordance with Section 3.2 hereof, the Swing Line Lender agrees to lend to the
Borrower Swing Line Loans, in Dollars, on any Business Day prior to the Final
Maturity Date in an aggregate principal amount not to exceed $30,000,000 (the
"Maximum Swing Line Loan Amount"). Each Swing Line Loan shall be in a minimum
amount equal to $500,000 or an integral multiple of $100,000 in excess thereof.
Notwithstanding any other provisions of this Credit Agreement and in addition to
the limit set forth above, at no time shall the aggregate principal amount of
all outstanding Swing Line Loans exceed the remainder of (i) the Total
Commitment then in effect minus (ii) the sum of, without

<PAGE>

                                      -31-

duplication, (A) the aggregate principal amount of all Revolving Credit Loans
outstanding, plus (B) the Maximum Drawing Amount, plus (C) all Unpaid
Reimbursement Obligations; provided, however, subject to the limitations set
forth in this Section 3.1 from time to time the sum of the aggregate outstanding
Swing Line Loans plus all outstanding Revolving Credit Loans made by the Swing
Line Lender may exceed the Swing Line Lender's Commitment or Commitment
Percentage of the Total Commitment then in effect.

     3.2. NOTICE OF BORROWING. When the Borrower desires the Swing Line Lender
to make a Swing Line Loan, the Borrower shall send to the Administrative Agent
and the Swing Line Lender written notice in the form of Exhibit B hereto (or
telephonic notice confirmed in a writing in the form of Exhibit B hereto) of
each Swing Line Loan requested hereunder (a "Swing Line Loan Request") not later
than 1:00 p.m. (New York time) on the proposed Drawdown Date of any Swing Line
Loan. Each such Swing Line Loan Request shall set forth the principal amount of
the proposed Swing Line Loan and the date on which the proposed Swing Line Loan
would mature (the "Swing Line Loan Maturity Date") which shall in no event be
later than the earliest of (i) the date which is ten (10) days following the
Drawdown Date of such Swing Line Loan, (ii) the occurrence of a Default or Event
of Default and (iii) the Final Maturity Date. Each Swing Line Loan Request shall
be irrevocable and binding on the Borrower and shall obligate the Borrower to
borrow the Swing Line Loan from the Swing Line Lender on the proposed Drawdown
Date thereof. Promptly after receipt by the Swing Line Lender of any telephonic
Swing Line Loan Request, the Swing Line Lender will confirm with the
Administrative Agent (by telephone or in writing) that the Administrative Agent
has also received such Swing Line Loan Request and, if not, the Swing Line
Lender will notify the Administrative Agent (by telephone or in writing) of the
contents thereof. Unless the Swing Line Lender has received notice (by telephone
or in writing) from the Administrative Agent (including at the request of any
Lender) prior to 2:00 p.m. (New York time) on the Drawdown Date of the proposed
Swing Line Loan (A) directing the Swing Line Lender not to make such Swing Line
Loan as a result of the limitations set forth in the proviso to the first
sentence of Section 3.1, or (B) that one or more of the applicable conditions
specified in Sections 10 and 11 is not then satisfied, then, subject to the
terms and conditions hereof, the Swing Line Lender will, not later than 3:00
p.m. on the borrowing date specified in such Swing Line Loan Request, make the
amount of its Swing Line Loan available to the Borrower at its office by
crediting the account of the Borrower on the books of the Swing Line Lender in
immediately available funds. The Swing Line Lender shall not be obligated to
make any Swing Line Loans at any time when any Lender is a Delinquent Lender
unless the Swing Line Lender has entered into arrangements reasonably
satisfactory to it to eliminate the Swing Line Lender's risk with respect to
such Delinquent Lender, which may include cash collateralizing such Delinquent
Lender's Commitment Percentage of the outstanding Swing Line Loans and any such
additional Swing Line Loans to be made.

     3.3. INTEREST ON SWING LINE LOANS. Except as otherwise provided in Section
5.9 hereof, each Swing Line Loan shall bear interest for the period commencing
on the Drawdown Date thereof and ending on the Swing Line Loan Maturity Date
with respect thereto at the rate per annum quoted by the Swing Line Lender upon
receipt of a Swing Line Loan Request (but which rate shall not exceed the Base
Rate in effect on the date of quotation). The Borrower promises to pay interest
on each Swing Line Loan in arrears on the Swing Line Loan Maturity Date with
respect thereto.

<PAGE>

                                      -32-

     3.4. REPAYMENT OF SWING LINE LOANS.

          3.4.1. FUNDING BY THE BORROWER. The Borrower shall repay each
     outstanding Swing Line Loan on the Swing Line Loan Maturity Date. The
     Borrower shall have the right, at its election, to prepay the outstanding
     amount of each Swing Line Loan, as a whole or in part, prior to the Swing
     Line Loan Maturity Date, provided that the Borrower shall indemnify the
     Swing Line Lender and hold the Swing Line Lender harmless from and against
     any loss, cost or expense (including loss of anticipated profits and costs
     of redeployment of funds) that the Swing Line Lender may sustain or incur
     as a consequence of such prepayment of such Swing Line Loan. The Borrower
     shall give the Swing Line Lender written notice of any proposed prepayment
     of any Swing Line Loan by not later than 11:00 a.m. (New York time) on the
     proposed date of prepayment, specifying the proposed date of prepayment of
     such Swing Line Loans and the principal amount to be prepaid. Each such
     partial prepayment of the Swing Line Loans shall be in an amount equal to
     $500,000 or an integral multiple of $100,000 in excess thereof and shall be
     accompanied by the payment of accrued interest on the principal prepaid to
     the date of prepayment.

          3.4.2. FUNDING WITH REVOLVING CREDIT LOANS. Upon notice by the Swing
     Line Lender on any Business Day on which a Swing Line Loan is outstanding
     after the Swing Line Loan Maturity Date, each of the Lenders hereby agrees
     to make Revolving Credit Loans constituting Base Rate Loans to the Borrower
     having outstanding Swing Line Loans, (a) by 3:00 p.m. (New York time) if
     such notice is given to the Lenders by 1:00 p.m. on such Business Day or
     (b) on the next succeeding Business Day if such notice is not given by 1:00
     p.m. (New York time) on such Business Day. Such Revolving Credit Loans
     shall be in an amount equal to such Lender's Commitment Percentage of the
     aggregate amount of all Swing Line Loans outstanding to the Borrower. The
     proceeds thereof shall be applied directly to the Swing Line Lender to
     repay the Swing Line Lender for such outstanding Swing Line Loans. Each
     Lender hereby absolutely, unconditionally and irrevocably agrees to make
     such Revolving Credit Loans notwithstanding (i) that the amount of such
     Revolving Credit Loan may not comply with the applicable minimums set forth
     herein, (ii) the failure of the Borrower to meet the conditions set forth
     in Sections 10 or 11 hereof, (iii) the occurrence or continuance of a
     Default or an Event of Default hereunder, (iv) the date of such Revolving
     Credit Loan, and (v) the Total Commitment in effect at such time. In the
     event that it is impracticable for such Revolving Credit Loan to be made
     for any reason on the date otherwise required above, then each Lender
     hereby agrees that it shall forthwith purchase (as of the date such
     Revolving Credit Loan would have been made, but adjusted for any payments
     received from the Borrower on or after such date and prior to such
     purchase) from the Swing Line Lender, and the Swing Line Lender shall sell
     to each Lender, such participations in the Swing Line Loans (including all
     accrued and unpaid interest thereon) outstanding as shall be necessary to
     cause the Lenders to share in such Swing Line Loans pro rata based on their
     respective Commitment Percentages (without regard to any termination of the
     Total Commitment hereunder) by making available to the Swing Line Lender an
     amount equal to such Lender's participation in the Swing Line Loans;
     provided that (A) all interest payable on the Swing Line Loans shall be for
     the account of the Swing Line Lender as a funding and administrative fee
     until the date as of which the respective participation is

<PAGE>

                                      -33-

     purchased, and (B) at the time any purchase of such participation is
     actually made, the purchasing Lender shall be required to pay the Swing
     Line Lender interest on the principal amount of the participation so
     purchased for each day from and including the date such Revolving Credit
     Loan would otherwise have been made until the date of payment for such
     participation at the rate of interest in effect applicable to Base Rate
     Loans during such period.

     3.5. LOAN ACCOUNT. The Swing Line Loans and the Obligations of the Borrower
in respect thereof shall be evidenced by one or more Loan Accounts maintained by
the Administrative Agent and by each Lender in the ordinary course of business.
The Loan Accounts maintained by the Administrative Agent and each Lender shall
be conclusive absent manifest error of the amount of the Swing Line Loans made
by the Lenders to the Borrower and the interest and payments thereon. Any
failure to so record or any error in doing so shall not, however, limit or
otherwise affect the obligation of the Borrower hereunder to pay any amount
owing with respect to the Obligations. In the event of any conflict between the
Loan Accounts maintained by any Lender and the Loan Accounts of the
Administrative Agent in respect of such matters, the accounts and records of the
Administrative Agent shall control in the absence of manifest error. Upon the
request of any Lender made through the Administrative Agent, the Borrower shall
execute and deliver to such Lender (through the Administrative Agent) a Note,
which shall evidence such Lender's Swing Line Loans in addition to such Loan
Accounts. Each Lender may attach schedules to its Note and endorse thereon the
date, Type (if applicable), amount and maturity of its Swing Line Loans and
payments with respect thereto.

                              4. LETTERS OF CREDIT.

     4.1. LETTER OF CREDIT COMMITMENTS.

          4.1.1. COMMITMENT TO ISSUE LETTERS OF CREDIT.

          (a) Subject to the terms and conditions hereof and the execution and
     delivery by the Borrower of a Letter of Credit Application (as defined
     below), the Fronting Bank on behalf of the Lenders and in reliance upon the
     agreement of the Lenders set forth in Section 4.2 and upon the
     representations and warranties of the Borrower contained herein, agrees, in
     its individual capacity, (1) from time to time on any Business Day during
     the period from the Closing Date until the Letter of Credit Expiration
     Date, to issue letters of credit (individually, a "Letter of Credit")
     denominated in Dollars or in one or more Alternative Currencies for the
     account of the Borrower or its Subsidiaries, and to amend or extend Letters
     of Credit previously issued by it, in accordance with Section 4.1.2 below,
     and (2) to honor drawings under the Letters of Credit, and the Lenders
     severally agree to participate in Letters of Credit issued for the account
     of the Borrower or its Subsidiaries and any drawings thereunder; provided,
     however, that, after giving effect to such request, the sum of the
     aggregate Maximum Drawing Amount and all Unpaid Reimbursement Obligations
     shall not exceed $125,000,000 at any one time and (b) the sum of (i) the
     Maximum Drawing Amount on all Letters of Credit, (ii) all Unpaid
     Reimbursement Obligations, and (iii) the amount of all Loans outstanding
     shall not exceed the Total Commitment at such time. As of the Closing Date,
     the Existing Letters of Credit shall be
<PAGE>

                                      -34-

     deemed to be Letters of Credit issued pursuant and subject to the
     conditions of this Section 4 and the Borrower hereby affirms its
     obligations thereunder.

          (b) The Fronting Bank shall not issue any Letter of Credit, if:

               (i) subject to Section 4.1.1(c), the expiry date of such
          requested Letter of Credit would occur more than twelve months after
          the date of issuance or last extension, unless the Required Lenders
          have approved such expiry date; or

               (ii) the expiry date of such requested Letter of Credit would
          occur after the Letter of Credit Expiration Date, unless all the
          Lenders have approved such expiry date.

          (c) The Fronting Bank shall not be under any obligation to issue any
     Letter of Credit if:

               (i) any order, judgment or decree of any Governmental Authority
          or arbitrator shall by its terms purport to enjoin or restrain the
          Fronting Bank from issuing such Letter of Credit, or any Law
          applicable to the Fronting Bank or any request or directive (whether
          or not having the force of law, but if not having the force of law, as
          based on the Administrative Agent's reasonable belief that such
          request or directive is consistent with prudent practice in the
          financial services industry at that time) from any Governmental
          Authority with jurisdiction over the Fronting Bank shall prohibit, or
          request that the Fronting Bank refrain from, the issuance of letters
          of credit generally or such Letter of Credit in particular or shall
          impose upon the Fronting Bank with respect to such Letter of Credit
          any restriction, reserve or capital requirement (for which the
          Fronting Bank is not otherwise compensated hereunder) not in effect on
          the Closing Date, or shall impose upon the Fronting Bank any
          unreimbursed loss, cost or expense which was not applicable on the
          Closing Date and which the Fronting Bank in good faith deems material
          to it;

               (ii) the issuance of such Letter of Credit would violate one or
          more policies of the Fronting Bank applicable to letters of credit
          generally;

               (iii) except as otherwise agreed by the Administrative Agent and
          the Fronting Bank, such Letter of Credit is in an initial stated
          amount less than $50,000;

               (iv) except as otherwise agreed by the Administrative Agent and
          the Fronting Bank, such Letter of Credit is to be denominated in a
          currency other than Dollars or an Alternative Currency; or

               (v) a default of any Lender's obligations to fund under Section
          4.2 exists or any Lender is at such time a Delinquent Lender
          hereunder, unless the Fronting Bank has entered into satisfactory
          arrangements with the Borrower or such Lender to eliminate the
          Fronting Bank's risk with respect to such Lender.

<PAGE>

                                      -35-

          (d) The Fronting Bank shall not amend any Letter of Credit if the
     Fronting Bank would not be permitted at such time to issue such Letter of
     Credit in its amended form under the terms hereof.

          (e) The Fronting Bank shall be under no obligation to amend any Letter
     of Credit if (A) the Fronting Bank would have no obligation at such time to
     issue such Letter of Credit in its amended form under the terms hereof, or
     (B) the beneficiary of such Letter of Credit does not accept the proposed
     amendment to such Letter of Credit.

          (f) The Fronting Bank shall act on behalf of the Lenders with respect
     to any Letters of Credit issued by it and the documents associated
     therewith, and the Fronting Bank shall have all of the benefits and
     immunities (A) provided to the Administrative Agent in Section 13 with
     respect to any acts taken or omissions suffered by the Fronting Bank in
     connection with Letters of Credit issued by it or proposed to be issued by
     it and Issuer Documents pertaining to such Letters of Credit as fully as if
     the term "Administrative Agent" as used in Section 13 included the Fronting
     Bank with respect to such acts or omissions, and (B) as additionally
     provided herein with respect to the Fronting Bank.

          4.1.2. LETTER OF CREDIT APPLICATIONS.

          (a) Each Letter of Credit shall be issued or amended, as the case may
     be, upon the request of the Borrower delivered to the Fronting Bank (with a
     copy to the Administrative Agent) in the form of a letter of credit
     application, appropriately completed and signed by a Responsible Officer of
     the Borrower (the "Letter of Credit Application"). Such Letter of Credit
     Application must be received by the Fronting Bank and the Administrative
     Agent not later than 11:00 a.m. at least two (2) Business Days (or such
     later date and time as the Administrative Agent and the Fronting Bank may
     agree in a particular instance in their sole discretion) prior to the
     proposed issuance date or date of amendment, as the case may be. In the
     case of a request for an initial issuance of a Letter of Credit, such
     Letter of Credit Application shall specify in form and detail satisfactory
     to the Fronting Bank: (A) the proposed issuance date of the requested
     Letter of Credit (which shall be a Business Day); (B) the amount and
     currency thereof; (C) the expiry date thereof; (D) the name and address of
     the beneficiary thereof; (E) the documents to be presented by such
     beneficiary in case of any drawing thereunder; (F) the full text of any
     certificate to be presented by such beneficiary in case of any drawing
     thereunder; and (G) such other matters as the Fronting Bank may reasonably
     require. In the case of a request for an amendment of any outstanding
     Letter of Credit, such Letter of Credit Application shall specify in form
     and detail satisfactory to the Fronting Bank (A) the Letter of Credit to be
     amended; (B) the proposed date of amendment thereof (which shall be a
     Business Day); (C) the nature of the proposed amendment; and (D) such other
     matters as the Fronting Bank may reasonably require. Additionally, the
     Borrower shall furnish to the Fronting Bank and the Administrative Agent
     such other documents and information pertaining to such requested Letter of
     Credit issuance or amendment, including any Issuer Documents, as the
     Fronting Bank or the Administrative Agent may reasonably require.

          (b) Promptly after receipt of any Letter of Credit Application, the
     Fronting Bank will confirm with the Administrative Agent (by telephone or
     in writing) that the

<PAGE>

                                      -36-

     Administrative Agent has received a copy of such Letter of Credit
     Application from the Borrower and, if not, the Fronting Bank will provide
     the Administrative Agent with a copy thereof. Unless the Fronting Bank has
     received written notice from any Lender, the Administrative Agent or the
     Borrower, at least one (1) Business Day prior to the requested date of
     issuance or amendment of the applicable Letter of Credit, that one or more
     applicable conditions contained in Section 10 or Section 11 shall not then
     be satisfied, then, subject to the terms and conditions hereof, the
     Fronting Bank shall, on the requested date, issue a Letter of Credit for
     the account of the Borrower (or the applicable Subsidiary) or enter into
     the applicable amendment, as the case may be, in each case in accordance
     with the Fronting Bank's usual and customary business practices. At the
     time of issuance of each Letter of Credit, the Fronting Bank shall notify
     the Administrative Agent of the Maximum Drawing Amount of such Letter of
     Credit and the other terms of such Letter of Credit. Immediately upon the
     issuance of each Letter of Credit, each Lender shall be deemed to, and
     hereby irrevocably and unconditionally agrees to, purchase from the
     Fronting Bank a risk participation in such Letter of Credit in an amount
     equal to the product of such Lender's Commitment Percentage times the
     amount of such Letter of Credit.

          (c) If the Borrower so requests in any applicable Letter of Credit
     Application, the Fronting Bank may, in its sole and absolute discretion,
     agree to issue a Letter of Credit that has automatic extension provisions
     (each, an "Auto-Extension Letter of Credit"); provided that any such
     Auto-Extension Letter of Credit must permit the Fronting Bank to prevent
     any such extension at least once in each twelve-month period (commencing
     with the date of issuance of such Letter of Credit) by giving prior notice
     to the beneficiary thereof not later than a day (the "Non-Extension Notice
     Date") in each such twelve-month period to be agreed upon at the time such
     Letter of Credit is issued. Unless otherwise directed by the Fronting Bank,
     the Borrower shall not be required to make a specific request to the
     Fronting Bank for any such extension. Once an Auto- Extension Letter of
     Credit has been issued, the Lenders shall be deemed to have authorized (but
     may not require) the Fronting Bank to permit the extension of such Letter
     of Credit at any time to an expiry date not later than the Letter of Credit
     Expiration Date; provided, however, that the Fronting Bank shall not permit
     any such extension if (A) the Fronting Bank has determined that it would
     not be permitted, or would have no obligation, at such time to issue such
     Letter of Credit in its revised form (as extended) under the terms hereof,
     or (B) it has received notice (which may be by telephone or in writing) on
     or before the day that is seven (7) Business Days before the Non-Extension
     Notice Date (1) from the Administrative Agent that the Required Lenders
     have elected not to permit such extension or (2) from the Administrative
     Agent, any Lender or the Borrower that one or more of the applicable
     conditions specified in Section 11 is not then satisfied, and in each such
     case directing the Fronting Bank not to permit such extension.

          (d) Promptly after its delivery of any Letter of Credit or any
     amendment to a Letter of Credit to an advising bank with respect thereto or
     to the beneficiary thereof, the Fronting Bank will also deliver to the
     Borrower and the Administrative Agent a true and complete copy of such
     Letter of Credit or amendment.

<PAGE>

                                      -37-

          4.1.3. CASH COLLATERAL. Upon the request of the Administrative Agent,
     (i) if the Fronting Bank has honored any full or partial drawing request
     under any Letter of Credit and such drawing has resulted in a Letter of
     Credit Borrowing, or (ii) if, as of the Letter of Credit Expiration Date,
     any Letter of Credit Participation for any reason remains outstanding, the
     Borrower shall, in each case, immediately Cash Collateralize the then
     Maximum Drawing Amount of any outstanding Letters of Credit and the Unpaid
     Reimbursement Obligation of all Letter of Credit Participations; provided,
     however, that in the event of a draw under a Letter of Credit which is
     being disputed in good faith by the Borrower under the rules of the ISP and
     UCP and in the absence of any other Default or Event of Default, the
     obligation of the Borrower to Cash Collateralize shall extend only to that
     Letter of Credit. Sections 2.12 and 12.2 set forth certain additional
     requirements to deliver Cash Collateral hereunder. For purposes of this
     Section 4.1.3, Section 2.12 and Section 12.2, "Cash Collateralize" means to
     pledge and deposit with or deliver to the Administrative Agent, for the
     benefit of the Fronting Bank and the Lenders, as collateral for the Maximum
     Drawing Amount plus the Unpaid Reimbursement Obligations, cash or deposit
     account balances pursuant to documentation in form and substance
     satisfactory to the Administrative Agent and the Fronting Bank (which
     documents are hereby consented to by the Lenders). Derivatives of such term
     have corresponding meanings. If the Cash Collateralization provided in this
     Section 4.1.3 occurs, the Borrower hereby grants to the Administrative
     Agent, for the benefit of the Fronting Bank and the Lenders, a security
     interest in all such cash, deposit accounts and all balances therein and
     all proceeds of the foregoing. Cash Collateral shall be maintained in
     blocked, non-interest bearing deposit accounts with the Administrative
     Agent.

          4.1.4. APPLICABILITY OF ISP AND UCP. Unless otherwise expressly agreed
     by the Fronting Bank and the Borrower when a Letter of Credit is issued
     (including any such agreement applicable to an Existing Letter of Credit),
     (i) the rules of the "International Standby Practices 1998" published by
     the Institute of International Banking Law & Practice (or such later
     version thereof as may be in effect at the time of issuance of the standby
     Letter of Credit) (the "ISP") shall apply to each standby Letter of Credit,
     and (ii) the rules of the Uniform Customs and Practice for Documentary
     Credits, as most recently published by the International Chamber of
     Commerce at the time of issuance (the "UCP") shall apply to each
     documentary Letter of Credit.

     4.2. DRAWINGS AND REIMBURSEMENTS; FUNDING OF PARTICIPATIONS.

          4.2.1. Upon receipt from the beneficiary of any Letter of Credit of
     any notice of a drawing under such Letter of Credit, the Fronting Bank
     shall notify the Borrower and the Administrative Agent thereof. In the case
     of a Letter of Credit denominated in an Alternative Currency, the Borrower
     shall reimburse the Fronting Bank in such Alternative Currency, unless (A)
     the Fronting Bank (at its option) shall have specified in such notice that
     it will require reimbursement in Dollars, or (B) in the absence of any such
     requirement for reimbursement in Dollars, the Borrower shall have notified
     the Fronting Bank promptly following receipt of the notice of drawing that
     the Borrower will reimburse the Fronting Bank in Dollars. In the case of
     any such reimbursement in Dollars of a drawing under a Letter of Credit
     denominated in an Alternative Currency, the Fronting Bank shall notify the
     Borrower of the Dollar Equivalent of the amount of the

<PAGE>

                                      -38-

     drawing promptly following the determination thereof. Not later than 11:00
     a.m. on the date of any payment by the Fronting Bank under a Letter of
     Credit to be reimbursed in Dollars, or the Applicable Time on the date of
     any payment by the Fronting Bank under a Letter of Credit to be reimbursed
     in an Alternative Currency (each such date, an "Honor Date"), the Borrower
     shall reimburse the Fronting Bank through the Administrative Agent in an
     amount equal to the amount of such drawing and in the applicable currency.
     If the Borrower fails to so reimburse the Fronting Bank by such time, the
     Administrative Agent shall promptly notify each Lender of the Honor Date,
     the amount of the Unpaid Reimbursement Obligation (expressed in Dollars in
     the amount of the Dollar Equivalent thereof in the case of a Letter of
     Credit denominated in an Alternative Currency), and the amount of such
     Lender's Applicable Percentage thereof. In such event, the Borrower shall
     be deemed to have requested a Committed Borrowing of Base Rate Loans to be
     disbursed on the Honor Date in an amount equal to the Unpaid Reimbursement
     Obligation, without regard to the minimum and multiples specified in
     Section 2.6 for the principal amount of Base Rate Loans, but subject to the
     amount of the unutilized portion of the Total Commitment and the conditions
     set forth in Section 11 (other than the delivery of a Loan Request). Any
     notice given by the Fronting Bank or the Administrative Agent pursuant to
     this Section 4.2.1 may be given by telephone if immediately confirmed in
     writing; provided that the lack of such an immediate confirmation shall not
     affect the conclusiveness or binding effect of such notice.

          4.2.2. Each Lender shall upon any notice pursuant to Section 4.2.1
     make funds available to the Administrative Agent for the account of the
     Fronting Bank, in Dollars, at the Administrative Agent's Office for
     Dollar-denominated payments in an amount equal to its Commitment Percentage
     of the Unpaid Reimbursement Obligation not later than 1:00 p.m. on the
     Business Day specified in such notice by the Administrative Agent,
     whereupon, subject to the provisions of Section 4.2.3, each Lender that so
     makes funds available shall be deemed to have made a Base Rate Loan to the
     Borrower in such amount (such participation by a Lender called herein the
     "Letter of Credit Participation"). The Administrative Agent shall remit the
     funds so received to the Fronting Bank in Dollars.

          4.2.3. With respect to any Unpaid Reimbursement Obligation that is not
     fully refinanced by a Committed Borrowing of Base Rate Loans because the
     conditions set forth in Section 11 cannot be satisfied or for any other
     reason, the Borrower shall be deemed to have incurred from the Fronting
     Bank a Letter of Credit Borrowing in the amount of the Unpaid Reimbursement
     Obligation that is not so refinanced, which Letter of Credit Borrowing
     shall be due and payable on demand (together with interest) and shall bear
     interest at the rate pursuant to Section 5.9. In such event, each Lender's
     payment to the Administrative Agent for the account of the Fronting Bank
     pursuant to Section 4.2.2 shall be deemed payment in respect of its Letter
     of Credit Participation.

          4.2.4. Until each Lender funds its Commitment pursuant to this Section
     4.2 to reimburse the Fronting Bank for any amount drawn under any Letter of
     Credit, interest in respect of such Lender's Commitment Percentage of such
     amount shall be solely for the account of the Fronting Bank.

<PAGE>

                                      -39-

          4.2.5. Each Lender's obligation to fund its Commitment or make its
     Letter of Credit Participation to reimburse the Fronting Bank for amounts
     drawn under Letters of Credit, as contemplated by this Section 4.2, shall
     be absolute and unconditional and shall not be affected by any
     circumstance, including (A) any setoff, counterclaim, recoupment, defense
     or other right which such Lender may have against the Fronting Bank, the
     Borrower or any other Person for any reason whatsoever; (B) the occurrence
     or continuance of a Default, or (C) any other occurrence, event or
     condition, whether or not similar to any of the foregoing; provided,
     however, that each Lender's obligation to make Loans pursuant to this
     Section 4.2 is subject to the conditions set forth in Section 11 (other
     than delivery by the Borrower of a Loan Request). No such Letter of Credit
     Participation shall relieve or otherwise impair the obligation of the
     Borrower to reimburse the Fronting Bank for the amount of any payment made
     by the Fronting Bank under any Letter of Credit, together with interest as
     provided herein.

          4.2.6. If any Lender fails to make available to the Administrative
     Agent for the account of the Fronting Bank any amount required to be paid
     by such Lender pursuant to the foregoing provisions of this Section 4.2 by
     the time specified in Section 4.2.2, the Fronting Bank shall be entitled to
     recover from such Lender (acting through the Administrative Agent), on
     demand, such amount with interest thereon for the period from the date such
     payment is required to the date on which such payment is immediately
     available to the Fronting Bank at a rate per annum equal to the greater of
     the Federal Funds Rate and a rate determined by the Fronting Bank in
     accordance with banking industry rules on interbank compensation, plus any
     administrative, processing or similar fees customarily charged by the
     Fronting Bank in connection with the foregoing. If such Lender pays such
     amount (with interest and fees as aforesaid), the amount so paid shall
     constitute such Lender's Commitment included in the relevant Committed
     Borrowing or Letter of Credit Participation in respect of the relevant
     Letter of Credit Borrowing, as the case may be. A certificate of the
     Fronting Bank submitted to any Lender (through the Administrative Agent)
     with respect to any amounts owing under this Section 4.2.6 shall be
     conclusive absent manifest error.

     4.3. REPAYMENT OF PARTICIPATIONS.

          4.3.1. At any time after the Fronting Bank has made a payment under
     any Letter of Credit and has received from any Lender such Lender's Letter
     of Credit Participation in respect of such payment in accordance with
     Section 4.2, if the Administrative Agent receives for the account of the
     Fronting Bank any payment in respect of the related Unpaid Reimbursement
     Obligation or interest thereon (whether directly from the Borrower or
     otherwise), the Administrative Agent will distribute to such Lender its
     Commitment Percentage thereof in the same funds as those received by the
     Administrative Agent.

          4.3.2. If any payment received by the Administrative Agent for the
     account of the Fronting Bank pursuant to Section 4.2.1 is required to be
     returned under any of the circumstances described in Section 15.1
     (including pursuant to any settlement entered into by the Fronting Bank in
     its discretion), each Lender shall pay to the Administrative Agent for the
     account of the Fronting Bank its Commitment Percentage thereof on demand of
     the Administrative Agent, plus interest thereon from the date of such
     demand to the date

<PAGE>

                                      -40-

     such amount is returned by such Lender, at a rate per annum equal to the
     Federal Funds Rate from time to time in effect. The obligations of the
     Lenders under this Section 4.3.2 shall survive the payment in full of the
     Obligations and the termination of this Credit Agreement.

     4.4. OBLIGATIONS ABSOLUTE. The obligation of the Borrower to reimburse the
Fronting Bank for each drawing under each Letter of Credit and to repay each
Unpaid Reimbursement Obligation shall be absolute, unconditional and
irrevocable, and shall be paid strictly in accordance with the terms of this
Credit Agreement under all circumstances, including the following:

          (a) any lack of validity or enforceability of such Letter of Credit,
     this Credit Agreement, or any other Loan Document;

          (b) the existence of any claim, counterclaim, setoff, defense or other
     right that the Borrower or any Subsidiary may have at any time against any
     beneficiary or any transferee of such Letter of Credit (or any Person for
     whom any such beneficiary or any such transferee may be acting), the
     Fronting Bank or any other Person, whether in connection with this Credit
     Agreement, the transactions contemplated hereby or by such Letter of Credit
     or any agreement or instrument relating thereto, or any unrelated
     transaction;

          (c) any draft, demand, certificate or other document presented under
     such Letter of Credit proving to be forged, fraudulent, or invalid in any
     respect or any statement therein being untrue or inaccurate in any respect;
     or any loss or delay in the transmission or otherwise of any document
     required in order to make a drawing under such Letter of Credit;

          (d) any payment by the Fronting Bank under such Letter of Credit
     against presentation of a draft or certificate that does not strictly
     comply with the terms of such Letter of Credit, so long as such draft or
     certificate complies in all material respects with such terms and the
     payment does not result from the Fronting Bank's gross negligence or
     willful misconduct; or any payment made by the Fronting Bank under such
     Letter of Credit to any Person purporting to be a trustee in bankruptcy,
     debtor-in-possession, assignee for the benefit of creditors, liquidator,
     receiver or other representative of or successor to any beneficiary or any
     transferee of such Letter of Credit, including any arising in connection
     with any proceeding under any Debtor Relief Law;

          (e) any adverse change in the relevant exchange rates or in the
     availability of the relevant Alternative Currency to the Borrower or any
     Subsidiary or in the relevant currency markets generally; or

          (f) any other circumstance or happening whatsoever, whether or not
     similar to any of the foregoing, including any other circumstance that
     might otherwise constitute a defense available to, or a discharge of, the
     Borrower or any Subsidiary.

     The Borrower shall promptly examine a copy of each Letter of Credit and
each amendment thereto that is delivered to it and, in the event of any claim of
noncompliance with

<PAGE>

                                      -41-

the Borrower's instructions or other irregularity, the Borrower will immediately
notify the Fronting Bank. The Borrower shall be conclusively deemed to have
waived any such claim against the Fronting Bank and its correspondents unless
such notice is given as aforesaid.

     4.5. RELIANCE BY ISSUER. To the extent not inconsistent with Section 4.4,
the Fronting Bank shall be entitled to rely, and shall be fully protected in
relying upon, any Letter of Credit, draft, writing, resolution, notice, consent,
certificate, affidavit, letter, cablegram, telegram, telecopy, telex, electronic
mail or teletype message, statement, order or other document believed by it to
be genuine and correct and to have been signed, sent or made by the proper
Person or Persons and, if the Fronting Bank shall determine that such advice is
reasonably necessary, upon advice and statements of legal counsel, independent
accountants and other experts selected by the Fronting Bank. The Fronting Bank
shall be fully justified in failing or refusing to take any action under this
Credit Agreement unless it shall first have received such advice or concurrence
of the Required Lenders as it reasonably deems appropriate or it shall first be
indemnified to its reasonable satisfaction by the Lenders against any and all
liability and expense which may be incurred by it by reason of taking or
continuing to take any such action. The Fronting Bank shall in all cases be
fully protected in acting, or in refraining from acting, under this Credit
Agreement in accordance with a request of the Required Lenders, and such request
and any action taken or failure to act pursuant thereto shall be binding upon
the Lenders and all future holders of a Letter of Credit Participation.

     4.6. LETTER OF CREDIT FEES. The Borrower shall pay to the Administrative
Agent, for the accounts of the Lenders in accordance with their respective
Commitment Percentages, a letter of credit fee with respect to (a) each standby
Letter of Credit (each, a "Standby Letter of Credit Fee"), equal to the
Applicable Margin per annum with respect to Standby Letter of Credit Fees
multiplied by the daily Maximum Drawing Amount available to be drawn under such
standby Letter of Credit (whether or not such maximum amount is then in effect
under such standby Letter of Credit) and (b) each documentary Letter of Credit
(a "Documentary Letter of Credit Fee"), equal to the Applicable Margin per annum
with respect to Documentary Letter of Credit Fees multiplied by the daily
Maximum Drawing Amount available to be drawn under such documentary Letter of
Credit. Such Letter of Credit Fees shall be payable quarterly in arrears on the
first Business Day of each calendar quarter (or portion thereof) of the Borrower
for the immediately preceding calendar quarter of the Borrower and on the Letter
of Credit Expiration Date. In addition, the Borrower shall pay to the Fronting
Bank a fronting fee for the account of the Fronting Bank in an amount agreed
upon by the Fronting Bank and the Borrower and based on the face amount of each
Letter of Credit, which fronting fee shall be payable in arrears (i) with
respect to each documentary Letter of Credit, upon the issuance thereof and (ii)
with respect to each standby Letter of Credit, on the first Business Day of each
calendar quarter (or portion thereof) of the Borrower for the immediately
preceding calendar quarter of the Borrower and on the Letter of Credit
Expiration Date. In respect of each Letter of Credit, the Borrower shall also
pay to the Fronting Bank for the Fronting Bank's own account the Fronting Bank's
customary issuance, amendment, negotiation or document examination and other
administrative fees in such amounts and at such times as agreed upon between the
Borrower and the Fronting Bank when due. For purposes of calculating fees
pursuant to this Section 4.6 with respect to outstanding Letters of Credit
issued in a currency other than Dollars, the face amount of each such
outstanding Letter of Credit shall be the Dollar equivalent of such face amount
as of the date any such fees are due and at the end of each calendar quarter.

<PAGE>

                                      -42-

     4.7. LETTERS OF CREDIT ISSUED FOR SUBSIDIARIES. Notwithstanding that a
Letter of Credit issued or outstanding hereunder is in support of any
obligations of, or is for the account of, a Subsidiary, the Borrower shall be
obligated to reimburse the Fronting Bank hereunder for any and all drawings
under such Letter of Credit. The Borrower hereby acknowledges that the issuance
of Letters of Credit for the account of Subsidiaries inures to the benefit of
the Borrower, and that the Borrower's business derives substantial benefits from
the businesses of such Subsidiaries.

     4.8. CONFLICT WITH ISSUER DOCUMENTS. In the event of any conflict between
the terms hereof and the terms of any Issuer Document, the terms hereof shall
control.

                         5. CERTAIN GENERAL PROVISIONS.

     5.1. CLOSING FEES. The Borrower agrees to pay to the Administrative Agent
for the accounts of the Lenders on the Closing Date the Upfront Fee and any
other fees due and payable on the Closing Date (collectively, the "Closing
Fee"), as set forth in the Fee Letter.

     5.2. ADMINISTRATIVE AGENCY FEE. The Borrower shall pay to the
Administrative Agent, for the Administrative Agent's own account, an
Administrative Agent's fee (the "Administrative Agency Fee") and such other fees
due and payable to the Administrative Agent (not including the Closing Fee), as
set forth in the Fee Letter.

     5.3. FUNDS FOR PAYMENTS.

          5.3.1. PAYMENTS TO ADMINISTRATIVE AGENT. All payments of principal,
     interest, Reimbursement Obligations, Fees and any other amounts due
     hereunder or under any of the other Loan Documents shall be made on the due
     date thereof to the Administrative Agent in Dollars, for the respective
     accounts of the Lenders and the Administrative Agent, at the Administrative
     Agent's Office or at such other place that the Administrative Agent may
     from time to time designate, in each case at or about 1:00 p.m. (New York
     time or other local time at the place of payment) and in immediately
     available funds.

          5.3.2. NO OFFSET, ETC. All payments by the Borrower hereunder and
     under any of the other Loan Documents shall be made without condition or
     deduction for any recoupment, setoff, defense or counterclaim.

          5.3.3. TAXES.

          (a) Payments Free of Taxes. Any and all payments by or on account of
     any obligation of the Borrower hereunder or under any other Loan Document
     shall be made free and clear of and without reduction or withholding for
     any Indemnified Taxes or Other Taxes, provided that if the Borrower shall
     be required by applicable law to deduct any Indemnified Taxes (including
     any Other Taxes) from such payments, then (i) the sum payable shall be
     increased as necessary so that after making all required deductions
     (including deductions applicable to additional sums payable under this
     Section 5.3.3) the Administrative Agent, Lender or Fronting Bank, 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
     and (iii) the Borrower shall timely pay the full

<PAGE>

                                      -43-

     amount deducted to the relevant Governmental Authority in accordance with
     applicable law.

          (b) Payment of Other Taxes by the Borrower. Without limiting the
     provisions of subsection (a) above, the Borrower shall timely pay any Other
     Taxes to the relevant Governmental Authority in accordance with applicable
     law.

          (c) Indemnification by the Borrower. The Borrower shall indemnify the
     Administrative Agent, each Lender and the Fronting Bank, within ten (10)
     days after demand therefor, for the full amount of any Indemnified Taxes or
     Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted
     on or attributable to amounts payable under this Section 5.3.3) paid by the
     Administrative Agent, such Lender or the Fronting Bank, as the case may be,
     and any penalties, interest and reasonable expenses arising therefrom or
     with respect thereto, whether or not such Indemnified Taxes or Other Taxes
     were correctly or legally imposed or asserted by the relevant Governmental
     Authority. A certificate as to the amount of such payment or liability
     delivered to the Borrower by a Lender or the Fronting Bank (with a copy to
     the Administrative Agent), or by the Administrative Agent on its own behalf
     or on behalf of a Lender or the Fronting Bank, shall be conclusive absent
     manifest error.

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

          (e) Treatment of Certain Refunds. If the Administrative Agent, any
     Lender or the Fronting Bank determines, in its sole discretion, that it has
     received a refund of any Taxes or Other Taxes as to which it has been
     indemnified by the Borrower or with respect to which the Borrower has paid
     additional amounts pursuant to this Section, it shall pay to the Borrower
     an amount equal to such refund (but only to the extent of indemnity
     payments made, or additional amounts paid, by the Borrower under this
     Section with respect to the Taxes or Other Taxes giving rise to such
     refund), without interest (other than any interest paid by the relevant
     Governmental Authority with respect to such refund), provided that the
     Borrower, upon the request of the Administrative Agent, such Lender or the
     Fronting Bank, agrees to repay the amount paid over to the Borrower (plus
     any penalties, interest or other charges imposed by the relevant
     Governmental Authority) to the Administrative Agent, such Lender or the
     Fronting Bank in the event the Administrative Agent, such Lender or the
     Fronting Bank is required to repay such refund to such Governmental
     Authority. This subsection shall not be construed to require the
     Administrative Agent, any Lender or the Fronting Bank to make available its
     tax returns (or any other information relating to its taxes that it deems
     confidential) to the Borrower or any other Person.

          5.3.4. NON-U.S. LENDERS. Each Lender and the Administrative Agent that
     is not a U.S. Person as defined in Section 7701(a)(30) of the Code for
     federal income tax

<PAGE>

                                      -44-

     purposes (a "Non-U.S. Lender") hereby agrees that, if and to the extent it
     is legally able to do so, it shall, prior to the date of the first payment
     by the Borrower hereunder to be made to such Lender or the Administrative
     Agent or for such Lender's or the Administrative Agent's account, deliver
     to the Borrower and the Administrative Agent, as applicable, such
     certificates, documents or other evidence, as and when required by the Code
     or Treasury Regulations issued pursuant thereto, including (a) in the case
     of a Non-U.S. Lender that is a "bank" for purposes of Section 881(c)(3)(A)
     of the Code, two (2) duly completed copies of Internal Revenue Service Form
     W-8BEN or Form W-8ECI and any other certificate or statement of exemption
     required by Treasury Regulations, or any subsequent versions thereof or
     successors thereto, properly completed and duly executed by such Lender or
     the Administrative Agent establishing that with respect to payments of
     principal, interest or fees hereunder it is (i) not subject to United
     States federal withholding tax under the Code because such payment is
     effectively connected with the conduct by such Lender or Administrative
     Agent of a trade or business in the United States or (ii) totally exempt or
     partially exempt from United States federal withholding tax under a
     provision of an applicable tax treaty and (b) in the case of a Non-U.S.
     Lender that is not a "bank" for purposes of Section 881(c)(3)(A) of the
     Code, a certificate in form and substance reasonably satisfactory to the
     Administrative Agent and the Borrower and to the effect that (i) such
     Non-U.S. Lender is not a "bank" for purposes of Section 881(c)(3)(A) of the
     Code, is not subject to regulatory or other legal requirements as a bank in
     any jurisdiction, and has not been treated as a bank for purposes of any
     tax, securities law or other filing or submission made to any governmental
     authority, any application made to a rating agency or qualification for any
     exemption from any tax, securities law or other legal requirements, (ii) is
     not a ten percent (10%) shareholder for purposes of Section 881(c)(3)(B) of
     the Code and (iii) is not a controlled foreign corporation receiving
     interest from a related person for purposes of Section 881(c)(3)(C) of the
     Code, together with a properly completed Internal Revenue Service Form W-8
     or W-9, as applicable (or successor forms). Each Lender or the
     Administrative Agent agrees that it shall, promptly upon a change of its
     lending office or the selection of any additional lending office, to the
     extent the forms previously delivered by it pursuant to this section are no
     longer effective, and promptly upon the Borrower's or the Administrative
     Agent's reasonable request after the occurrence of any other event
     (including the passage of time) requiring the delivery of a Form W-8BEN,
     Form W-8ECI, Form W-8 or W-9 in addition to or in replacement of the forms
     previously delivered, deliver to the Borrower and the Administrative Agent,
     as applicable, if and to the extent it is properly entitled to do so, a
     properly completed and executed Form W-8BEN, Form W-8ECI, Form W-8 or W-9,
     as applicable (or any successor forms thereto).

     5.4. COMPUTATIONS. All computations of interest on Base Rate Loans, where
the Base Rate is based on the prime rate, Swing Line Loans and of Fees shall be
based on a 365-day year or 366-day year, as the case may be, and paid for the
actual number of days elapsed. All other computations of fees and interest,
including all computations of interest on Eurodollar Rate Loans, shall be based
on a 360-day year and paid for the actual number of days elapsed. Except as
otherwise provided in the definition of the term "Interest Period" with respect
to Eurodollar Rate Loans, whenever a payment hereunder or under any of the other
Loan Documents becomes due on a day that is not a Business Day, the due date for
such payment shall be extended to the next succeeding Business Day, and interest
shall accrue during such extension. The outstanding

<PAGE>

                                      -45-

amount of the Revolving Credit Loans and the Swing Line Loans as reflected on
the Loan Accounts from time to time shall be prima facie evidence of the
principal amount thereof owing and unpaid to Lenders, but the failure to record,
or any error in so recording, any amounts in the Loan Accounts shall not limit
or otherwise affect the obligation of the Borrower hereunder to make payments of
principal of, or interest on, the Loans when due.

     5.5. INABILITY TO DETERMINE EURODOLLAR RATE. In the event, prior to the
commencement of any Interest Period relating to any Eurodollar Rate Loan, the
Administrative Agent shall determine or be notified by the Required Lenders that
adequate and reasonable methods do not exist for ascertaining the Eurodollar
Rate that would otherwise determine the rate of interest to be applicable to any
Eurodollar Rate Loan during any Interest Period, the Administrative Agent shall
forthwith give notice of such determination (which shall be conclusive and
binding on the Borrower and the Lenders) to the Borrower and the Lenders. In
such event the Administrative Agent shall notify the Borrower that (a) any Loan
Request or Conversion Request with respect to Eurodollar Rate Loans shall be
automatically withdrawn and shall be deemed a request for Base Rate Loans, (b)
each Eurodollar Rate Loan will automatically, on the last day of the then
current Interest Period relating thereto, become a Base Rate Loan, and (c) the
obligations of the Lenders to make Eurodollar Rate Loans shall be suspended
until the Administrative Agent or the Required Lenders determine that the
circumstances giving rise to such suspension no longer exist, whereupon the
Administrative Agent or, as the case may be, the Administrative Agent upon the
instruction of the Required Lenders, shall so notify the Borrower and the
Lenders.

     5.6. ILLEGALITY. Notwithstanding any other provisions herein, if any
present or future law, regulation, treaty or directive or in the interpretation
or application thereof shall make it unlawful for any Lender to make or maintain
Eurodollar Rate Loans, such Lender shall forthwith give notice of such
circumstances to the Borrower and the other Lenders and thereupon (a) the
commitment of such Lender to make Eurodollar Rate Loans or convert Base Rate
Loans to Eurodollar Rate Loans shall forthwith be suspended and (b) such
Lender's Revolving Credit Loans then outstanding as Eurodollar Rate Loans, if
any, shall be converted automatically to Base Rate Loans on the last day of each
Interest Period applicable to such Eurodollar Rate Loans or within such earlier
period as may be required by law. The Borrower hereby agrees promptly to pay the
Administrative Agent for the account of such Lender, upon demand by such Lender,
any additional amounts necessary to compensate such Lender for any costs
incurred by such Lender in making any conversion in accordance with this Section
5.6, including any interest or fees payable by such Lender to lenders of funds
obtained by it in order to make or maintain its Eurodollar Rate Loans hereunder.

     5.7. INCREASED COSTS; MITIGATION OBLIGATIONS.

          5.7.1. INCREASED COSTS GENERALLY. If any Change in Law shall:

          (a) impose, modify or deem applicable any reserve, special deposit,
     compulsory loan, insurance charge or similar requirement against assets of,
     deposits with or for the account of, or credit extended or participated in
     by, any Lender (to the extent included in the Eurodollar Rate) or the
     Fronting Bank;
<PAGE>

                                      -46-

          (b) subject any Lender or the Fronting Bank to any tax of any kind
     whatsoever with respect to this Credit Agreement, any Letter of Credit, any
     participation in a Letter of Credit or any Eurodollar Rate Loan made by it,
     or change the basis of taxation of payments to such Lender or the Fronting
     Bank in respect thereof (except for Indemnified Taxes or Other Taxes
     covered by Section 5.3.3 and the imposition of, or any change in the rate
     of, any Excluded Tax payable by such Lender or the Fronting Bank); or

          (c) impose on any Lender or the Fronting Bank or the London interbank
     market any other condition, cost or expense affecting this Credit Agreement
     or Eurodollar Rate Loans made by such Lender or any Letter of Credit or
     participation therein;

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

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

          5.7.3. CERTIFICATES FOR REIMBURSEMENT. A certificate of a Lender or
     the Fronting Bank setting forth the amount or amounts necessary to
     compensate such Lender or the Fronting Bank or its holding company, as the
     case may be, as specified in Section 5.7.1 or Section 5.7.2 and delivered
     to the Borrower shall be conclusive absent manifest error. The

<PAGE>

                                      -47-

     Borrower shall pay such Lender or the Fronting Bank, as the case may be,
     the amount shown as due on any such certificate within ten (10) days after
     receipt thereof.

          5.7.4. DELAY IN REQUESTS. Failure or delay on the part of any Lender
     or the Fronting Bank to demand compensation pursuant to the foregoing
     provisions of this Section shall not constitute a waiver of such Lender's
     or the Fronting Bank's right to demand such compensation, provided that the
     Borrower shall not be required to compensate a Lender or the Fronting Bank
     pursuant to the foregoing provisions of this Section for any increased
     costs incurred or reductions suffered more than nine (9) months prior to
     the date that such Lender or the Fronting Bank, as the case may be,
     notifies the Borrower of the Change in Law giving rise to such increased
     costs or reductions and of such Lender's or the Fronting Bank's intention
     to claim compensation therefor (except that, if the Change in Law giving
     rise to such increased costs or reductions is retroactive, then the
     nine-month period referred to above shall be extended to include the period
     of retroactive effect thereof).

          5.7.5. DESIGNATION OF A DIFFERENT LENDING OFFICE. If any Lender
     requests compensation under Section 5.7 or the Borrower is required to pay
     any additional amount to any Lender or any Governmental Authority for the
     account of any Lender pursuant to Section 5.3.3, or if any Lender gives a
     notice pursuant to Section 5.6, then such Lender shall use reasonable
     efforts to designate a different Lending Office for funding or booking its
     Loans hereunder or to assign its rights and obligations hereunder to
     another of its offices, branches or affiliates, if, in the judgment of such
     Lender, such designation or assignment (i) would eliminate or reduce
     amounts payable pursuant to Sections 5.3.3 or 5.7, as the case may be, in
     the future, or eliminate the need for the notice pursuant to Section 5.6,
     as applicable, and (ii) in each case, would not subject such Lender to any
     unreimbursed cost or expense and would not otherwise be disadvantageous to
     such Lender.

     5.8. INDEMNITY. The Borrower agrees to indemnify each Lender and to hold
each Lender harmless from and against any loss, cost or expense (excluding the
Applicable Margin) that such Lender may sustain or incur as a consequence of (a)
default by the Borrower in payment of the principal amount of or any interest on
any Eurodollar Rate Loans as and when due and payable, including any such loss
or expense arising from interest or fees payable by such Lender to banks of
funds obtained by it in order to maintain its Eurodollar Rate Loans, (b) default
by the Borrower in making a borrowing or conversion after the Borrower has given
(or is deemed to have given) a Loan Request for, or a Conversion Request to, a
Eurodollar Rate Loan relating thereto in accordance with Section 2.6 or Section
2.7 or (c) the making of any payment of a Eurodollar Rate Loan or the making of
any conversion of any such Revolving Credit Loan to a Base Rate Loan on a day
that is not the last day of the applicable Interest Period with respect thereto,
including interest or fees payable by such Lender to lenders of funds obtained
by it in order to maintain any such Loans and costs of redeployment of funds.

     5.9. INTEREST AFTER DEFAULT.

          5.9.1. OVERDUE AMOUNTS. Overdue principal and (to the extent permitted
     by applicable law and after giving effect to any applicable grace period)
     interest on the Loans and all other overdue amounts payable hereunder
     (including Unpaid

<PAGE>

                                      -48-

     Reimbursement Obligations) or under any of the other Loan Documents shall
     bear interest (or fees in the case of Unpaid Reimbursement Obligations)
     compounded monthly and payable on demand at a rate per annum equal to two
     percent (2%) above the rate of interest or Letter of Credit Fee then
     applicable thereto (or, if no rate of interest is then applicable thereto,
     the Base Rate) until such amount shall be paid in full (after as well as
     before judgment).

          5.9.2. AMOUNTS NOT OVERDUE. During the continuance of an Event of
     Default until such Event of Default has been cured or remedied or such
     Event of Default has been waived by the Required Lenders pursuant to
     Section 15.12, (a) the principal of the Loans not overdue shall bear
     interest at a rate per annum equal to two percent (2%) above the rate of
     interest then applicable thereto and (b) the Applicable Margin applicable
     to Letter of Credit Fees shall be equal to two percent (2%) above the
     Letter of Credit Fee otherwise applicable to such Letter of Credit pursuant
     to Section 4.6.

     5.10. REPLACEMENT OF LENDERS. If any Lender (an "Affected Lender") (a)
makes demand upon the Borrower for (or if the Borrower is otherwise required to
pay) amounts pursuant to Section 5.7, (b) is unable to make or maintain
Eurodollar Rate Loans as a result of a condition described in Section 5.6, (c)
defaults in its obligation to make Loans in accordance with the terms of this
Credit Agreement or purchase any Letter of Credit Participation or (d) elects
not to extend the Final Maturity Date, the Borrower may, so long as no Event of
Default has occurred and is then continuing, within ninety (90) days of receipt
of such demand, notice (or the occurrence of such other event causing the
Borrower to be required to pay such compensation or causing Section 5.6 to be
applicable), default or election not to extend, as the case may be, by notice (a
"Replacement Notice") in writing to the Administrative Agent and such Affected
Lender (i) request the non-Affected Lenders to acquire and assume all of the
Affected Lender's Loans and Commitment as provided herein, but none of such
Lenders shall be under an obligation to do so; or (ii) designate a replacement
Lender satisfactory to the Administrative Agent and the Borrower (the
"Replacement Lender") approved by the Administrative Agent, such approval not to
be unreasonably withheld or delayed. If any satisfactory Replacement Lender
shall be obtained, and/or if any one or more of the non-Affected Lenders shall
agree to acquire and assume all of the Affected Lender's Loans and Commitment,
then such Affected Lender shall assign, in accordance with Section 14, all of
its Commitment, Loans, Letter of Credit Participations and other rights and
obligations under this Credit Agreement and all other Loan Documents to such
Replacement Lender or non-Affected Lenders, as the case may be, in exchange for
payment of the principal amount so assigned and all interest and fees accrued on
the amount so assigned, plus all other Obligations then due and payable to the
Affected Lender; provided, however, that (A) such assignment shall be without
recourse, representation or warranty and shall be on terms and conditions
reasonably satisfactory to such Affected Lender and such Replacement Lender
and/or non-Affected Lenders, as the case may be, and (B) prior to any such
assignment, the Borrower shall have paid to such Affected Lender all amounts
properly demanded and unreimbursed under Section 5.7. Upon the effective date of
such assignment, such institution shall become a "Lender" for all purposes under
this Credit Agreement and the other Loan Documents.

<PAGE>

                                      -49-

                       6. REPRESENTATIONS AND WARRANTIES.

     The Borrower represents and warrants to the Lenders and the Administrative
Agent as follows:

     6.1. CORPORATE AUTHORITY.

          6.1.1. INCORPORATION; GOOD STANDING. The Borrower (a) is a corporation
     (or similar business entity) duly organized, validly existing and in good
     standing under the laws of its jurisdiction of incorporation or formation,
     (b) has all requisite corporate (or the equivalent company) power to own
     its property and conduct its business as now conducted and as presently
     contemplated, and (c) is in good standing as a foreign corporation (or
     similar business entity) and is duly authorized to do business in each
     jurisdiction where such qualification is necessary except where a failure
     to be so qualified would not have a Material Adverse Effect. Except as
     would not reasonably be expected to result in a Material Adverse Effect,
     each of the Subsidiaries of the Borrower (a) is a corporation (or similar
     business entity) duly organized, validly existing and in good standing
     under the laws of its jurisdiction of incorporation or formation, (b) has
     all requisite corporate (or the equivalent company) power to own its
     property and conduct its business as now conducted and as presently
     contemplated, and (c) is in good standing as a foreign corporation (or
     similar business entity) and is duly authorized to do business in each
     jurisdiction where such qualification is necessary.

          6.1.2. AUTHORIZATION. The execution, delivery and performance of this
     Credit Agreement and the other Loan Documents and the transactions
     contemplated hereby and thereby (a) are within the corporate (or the
     equivalent company) authority of such Person, (b) have been duly authorized
     by all necessary corporate (or the equivalent company) proceedings, (c) do
     not and will not conflict with or result in any breach or contravention of
     any provision of law, statute, rule or regulation to which the Borrower is
     subject or any judgment, order, writ, injunction, license or permit
     applicable to the Borrower and (d) do not conflict with any provision of
     the Governing Documents of, or any material agreement or other instrument
     binding upon, the Borrower.

          6.1.3. ENFORCEABILITY. The execution and delivery of this Credit
     Agreement and the other Loan Documents will result in valid and legally
     binding obligations of such Person enforceable against it in accordance
     with the respective terms and provisions hereof and thereof, except as
     enforceability is limited by bankruptcy, insolvency, reorganization,
     moratorium or other laws relating to or affecting generally the enforcement
     of creditors' rights and except to the extent that availability of the
     remedy of specific performance or injunctive relief is subject to the
     discretion of the court before which any proceeding therefor may be
     brought.

     6.2. GOVERNMENTAL APPROVALS. The execution, delivery and performance by the
Borrower of this Credit Agreement and the other Loan Documents and the
transactions contemplated hereby and thereby do not require the approval or
consent of, or filing with, any governmental agency or authority other than
those already obtained except for filings by the

<PAGE>

                                      -50-

Borrower with the Securities and Exchange Commission to comply with applicable
reporting requirements.

     6.3. FINANCIAL STATEMENTS. There has been furnished to each of the Lenders
consolidated and consolidating balance sheets of the Borrower and its
Subsidiaries as at the Balance Sheet Date, and consolidated and consolidating
statements of income and consolidated statement of cash flow of the Borrower and
its Subsidiaries for the fiscal year then ended, audited by Deloitte & Touche
LLP. Such balance sheets and statements of income and cash flow have been
prepared in accordance with GAAP and fairly present the financial condition of
the Borrower and its Subsidiaries as at the close of business on the date
thereof and the results of operations for the fiscal year then ended.

     6.4. NO MATERIAL ADVERSE CHANGES, ETC. Since the Balance Sheet Date there
has been no event or occurrence which has had a Material Adverse Effect.

     6.5. FRANCHISES, PATENTS, COPYRIGHTS, ETC. The Borrower and each of its
Subsidiaries possesses all material franchises, patents, copyrights, trademarks,
trade names, licenses and permits, and rights in respect of the foregoing,
adequate for the conduct of its business substantially as now conducted.

     6.6. LITIGATION. Except as set forth in Schedule 6.6 hereto, there are no
actions, suits, proceedings or investigations of any kind pending or threatened
against the Borrower or any of its Subsidiaries before any Governmental
Authority, that (a) would reasonably be expected to have a Material Adverse
Effect or (b) question the validity of this Credit Agreement or any of the other
Loan Documents.

     6.7. COMPLIANCE WITH OTHER INSTRUMENTS, LAWS, ETC. Neither the Borrower nor
any of its Subsidiaries is in violation of any provision of its Governing
Documents, or any agreement or instrument to which it may be subject or by which
it or any of its properties may be bound or any decree, order, judgment,
statute, license, rule or regulation, in any of the foregoing cases in a manner
that would reasonably be expected to have a Material Adverse Effect.

     6.8. TAX STATUS. The Borrower and its Subsidiaries (a) have made or filed
all federal, state and foreign income and all other tax returns, reports and
declarations required by any jurisdiction to which any of them is subject, (b)
have paid all taxes and other governmental assessments and charges shown or
determined to be due on such returns, reports and declarations, except those
being contested in good faith and by appropriate proceedings and (c) have set
aside on their books provisions reasonably adequate for the payment of all taxes
for periods subsequent to the periods to which such returns, reports or
declarations apply. There are no unpaid taxes in any material amount claimed to
be due by the taxing authority of any jurisdiction except those being contested
in good faith and by appropriate proceedings, and none of the officers of the
Borrower know of any basis for any such claim.

     6.9. NO EVENT OF DEFAULT. No Default or Event of Default has occurred and
is continuing.

     6.10. HOLDING COMPANY AND INVESTMENT COMPANY ACTS. Neither the Borrower nor
any of its Subsidiaries is a "holding company", or a "subsidiary company" of a
"holding

<PAGE>

                                      -51-

company", or an "affiliate" of a "holding company", as such terms are defined in
the Public Utility Holding Company Act of 1935; nor is it an "investment
company", or an "affiliated company" or a "principal underwriter" of an
"investment company", as such terms are defined in the Investment Company Act of
1940.

     6.11. EMPLOYEE BENEFIT PLANS AND GUARANTEED PENSION PLANS. Each Employee
Benefit Plan and Guaranteed Pension Plan has been maintained and operated in
compliance in all material respects with the provisions of ERISA and all
Applicable Pension Legislation and, to the extent applicable, the Code, except
as would not reasonably be expected to have a Material Adverse Effect. The
Borrower and each of the ERISA Affiliates has fulfilled its obligations under
the minimum funding standards of ERISA and the Code with respect to each
Guaranteed Pension Plan. Neither the Borrower nor any ERISA Affiliate has (i)
sought a waiver of the minimum funding standard under Section 412 of the Code in
respect of any Guaranteed Pension Plan, (ii) failed to make any contribution or
payment to any Guaranteed Pension Plan or Multiemployer Plan or in respect of
any Employee Benefit Plan, or made any amendment to any Guaranteed Pension Plan
or Employee Benefit Plan, 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 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.

     6.12. ENVIRONMENTAL COMPLIANCE. 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.

     6.13. SUBSIDIARIES, ETC. Schedule 6.13 hereto sets forth, as of the Closing
Date, a true and complete list of the only Subsidiaries of the Borrower.

     6.14. DISCLOSURE. All information heretofore furnished by the Borrower to
the Administrative Agent or any Lender for purposes of or in connection with
this Credit Agreement or any transaction contemplated hereby is, and all such
information hereafter furnished by the Borrower to the Administrative Agent or
any Lender will be, true and accurate in all material respects on a date as of
which such information is stated or certified. The Borrower has disclosed to the
Administrative Agent and the Lenders in writing any and all facts, other than
general economic conditions, legal standards or regulatory conditions which has
a Material Adverse Effect or would reasonably be likely to result in a Material
Adverse Effect.

<PAGE>

                                      -52-

     6.15. FOREIGN ASSETS CONTROL REGULATIONS, ETC. None of the requesting or
borrowing of the Loans, the requesting or issuance, extension or renewal of any
Letters of Credit or the use of the proceeds of any thereof will violate the
Trading With the Enemy Act (50 U.S.C. Section 1 et seq., as amended) (the
"Trading With the Enemy Act") or any of the foreign assets control regulations
of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter V, as
amended) (the "Foreign Assets Control Regulations") or any enabling legislation
or executive order relating thereto (which for the avoidance of doubt shall
include, but shall not be limited to (a) Executive Order 13224 of September 21,
2001 Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)) (the
"Executive Order") and (b) the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001
(Public Law 107-56)). Furthermore, neither the Borrower nor any of its
Subsidiaries or other Affiliates (a) is or will become a "blocked person" as
described in the Executive Order, the Trading With the Enemy Act or the Foreign
Assets Control Regulations or (b) engages or will engage in any dealings or
transactions, or be otherwise associated, with any such "blocked person".

                            7. AFFIRMATIVE COVENANTS.

     The Borrower covenants and agrees that, so long as any Revolving Credit
Loan, Swing Line Loan, Unpaid Reimbursement Obligation or Letter of Credit is
outstanding or any Lender has any obligation to make any Loans or the Fronting
Bank has any obligation to issue, extend, amend or renew any Letters of Credit:

     7.1. PUNCTUAL PAYMENT. The Borrower promises to duly and punctually pay or
cause to be paid the principal and interest on the Loans, all Reimbursement
Obligations, the Fees and all other amounts provided for in this Credit
Agreement and the other Loan Documents, all in accordance with the terms of this
Credit Agreement and such other Loan Documents.

     7.2. RECORDS AND ACCOUNTS. The Borrower will (a) keep, and cause each of
its Subsidiaries to keep, true and accurate records and books of account in
which full, true and correct entries will be made in accordance with GAAP and
(b) maintain adequate accounts and reserves for all taxes (including income
taxes), depreciation, depletion, obsolescence and amortization of its properties
and the properties of its Subsidiaries, contingencies, and other reserves.

     7.3. FINANCIAL STATEMENTS, CERTIFICATES AND INFORMATION. The Borrower will
deliver to each of the Lenders:

          (a) as soon as practicable, but in any event not later than ninety
     (90) days after the end of each fiscal year of the Borrower, the
     consolidated balance sheet of the Borrower and its Subsidiaries and the
     consolidating balance sheet of the Borrower and its Subsidiaries, each as
     at the end of such year and, with respect to the consolidated balance sheet
     of the Borrower and its Subsidiaries, setting forth in comparative form the
     figures for the previous fiscal year, and the related consolidated
     statement of income and consolidated statement of cash flow and
     consolidating statement of income, all such consolidated and consolidating
     statements to be in reasonable detail and prepared in accordance with GAAP,
     and with respect to the consolidated statements, setting forth in

<PAGE>

                                      -53-

     comparative form the figures for the previous fiscal year, and audited,
     without qualification and without an expression of uncertainty as to the
     ability of the Borrower or any of its Subsidiaries to continue as going
     concerns, by Deloitte & Touche LLP or by other similar independent
     certified public accountants of nationally recognized standing, together
     with a written statement from such accountants to the effect that they have
     read a copy of this Credit Agreement, and that, in making the examination
     necessary to said certification, they have obtained no knowledge of any
     Default or Event of Default, or, if such accountants shall have obtained
     knowledge of any then existing Default or Event of Default they shall
     disclose in such statement any such Default or Event of Default; provided
     that such accountants shall not be liable to the Lenders for failure to
     obtain knowledge of any Default or Event of Default;

          (b) as soon as practicable, but in any event not later than forty-five
     (45) days after the end of each of the fiscal quarters of the Borrower,
     copies of the unaudited consolidated balance sheet of the Borrower and its
     Subsidiaries and the unaudited consolidating balance sheet of the Borrower
     and its Subsidiaries, each as at the end of such quarter and, with respect
     to the unaudited consolidated balance sheet of the Borrower and its
     Subsidiaries, setting forth in comparative form the figures for the
     corresponding fiscal quarter of the previous fiscal year, and the related
     consolidated statement of income and consolidated statement of cash flow
     and consolidating statement of income for the portion of the Borrower's
     fiscal year then elapsed, all in reasonable detail and prepared in
     accordance with GAAP, and with respect to the consolidated statements,
     setting forth in comparative form the figures for the corresponding fiscal
     quarter of the previous fiscal year, together with a certification by the
     Chief Financial Officer, Chief Accounting Officer or the Treasurer of the
     Borrower that the information contained in such financial statements fairly
     presents the financial position of the Borrower and its Subsidiaries on the
     date thereof (subject to year-end adjustments and addition of footnotes);

          (c) simultaneously with the delivery of the financial statements
     referred to in subsections (a) and (b) above, a statement certified by the
     Chief Financial Officer, Chief Accounting Officer or the Treasurer of the
     Borrower in substantially the form of Exhibit C hereto (a "Compliance
     Certificate") and setting forth in reasonable detail computations
     evidencing compliance with the covenants contained in Section 9;

          (d) contemporaneously with the filing or mailing thereof, copies of
     all filings containing financial statements or proxy statements filed with
     the Securities and Exchange Commission or sent to the stockholders of the
     Borrower;

          (e) from time to time such other financial data and information
     (including any and all financial statements and other supporting financial
     documents and schedules including copies of any accountant's management
     letters with respect to the business, financial condition and other affairs
     of the Borrower or any of its Subsidiaries) as the Administrative Agent or
     any Lender may reasonably request.

     Documents required to be delivered pursuant to this Section 7.3 (to the
extent any such documents are included in materials otherwise filed with the
Securities and Exchange

<PAGE>

                                      -54-

Commission) may be delivered electronically; provided that the Borrower shall
deliver paper copies of such documents to the Administrative Agent or any Lender
that requests the Borrower to deliver such paper copies until a written request
to cease delivering paper copies is given by the Administrative Agent or such
Lender. Notwithstanding anything contained herein, in every instance the
Borrower shall be required to provide paper copies of the Compliance
Certificates required by Section 7.3(c) to the Administrative Agent.

     The Borrower hereby acknowledges that (a) the Administrative Agent and/or
the Lead Arranger will make available to the Lenders and the Fronting Bank
materials and/or information provided by or on behalf of the Borrower hereunder
(collectively, "Borrower Materials") by posting the Borrower Materials on
IntraLinks or another similar electronic system utilizing at least comparable
security and privacy protection methods as those used by IntraLinks on the date
hereof or, in the event such methods are improved by IntraLinks in the future,
such improved methods (the "Platform") and (b) certain of the Lenders may be
"public-side" Lenders (i.e., Lenders that do not wish to receive material
non-public information with respect to the Borrower or its securities) (each, a
"Public Lender"). The Borrower hereby agrees that (w) all Borrower Materials
that are to be made available to Public Lenders shall be clearly and
conspicuously marked "PUBLIC" which, at a minimum, shall mean that the word
"PUBLIC" shall appear prominently on the first page thereof; (x) by marking
Borrower Materials "PUBLIC," the Borrower shall be deemed to have authorized the
Administrative Agent, the Arrangers, the Fronting Bank and the Lenders to treat
such Borrower Materials as not containing any material non-public information
with respect to the Borrower or its securities for purposes of United States
Federal and state securities laws; (y) all Borrower Materials marked "PUBLIC"
are permitted to be made available through a portion of the Platform designated
"Public Investor;" and (z) the Administrative Agent and the Arranger shall be
entitled to treat any Borrower Materials that are not marked "PUBLIC" as being
suitable only for posting on a portion of the Platform not designated "Public
Investor." Notwithstanding the foregoing, the Borrower shall be under no
obligation to mark any Borrower Materials "PUBLIC."

     7.4. NOTICES OF DEFAULTS. The Borrower will promptly notify the
Administrative Agent and each of the Lenders in writing of the occurrence of any
Default or Event of Default, together with a reasonably detailed description
thereof, and the actions the Borrower proposes to take with respect thereto. If
any Person shall give any notice or take any other action in respect of a
claimed default (whether or not constituting an Event of Default) under this
Credit Agreement or any other note, evidence of indebtedness, indenture or other
obligation evidencing Material Debt to which or with respect to which the
Borrower or any of its Subsidiaries is a party or obligor, whether as principal,
guarantor, surety or otherwise, the Borrower shall forthwith give written notice
thereof to the Administrative Agent and each of the Lenders, describing the
notice or action and the nature of the claimed default.

     7.5. LEGAL EXISTENCE; MAINTENANCE OF PROPERTIES. The Borrower will do or
cause to be done all things reasonably necessary to preserve and keep in full
force and effect its legal existence. The Borrower (i) will cause all of its
properties and those of its Subsidiaries used and useful in the conduct of its
business or the business of its Subsidiaries to be maintained and kept in good
condition, repair and working order and supplied with all necessary equipment,
(ii) will cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof, all as in the judgment of the Borrower may
be reasonably necessary so that the business

<PAGE>

                                      -55-

carried on in connection therewith may be properly and advantageously conducted
at all times, and (iii) will, and will cause each of its Subsidiaries to,
continue to engage primarily in the businesses now conducted by them and in
related businesses; provided that nothing in this Section 7.5 shall prevent the
Borrower from engaging in transactions not prohibited hereunder or from
discontinuing the operation and maintenance of any of its properties or any of
those of its Subsidiaries if such discontinuance is, in the judgment of the
Borrower, desirable in the conduct of its or their business and that do not in
the aggregate have a Material Adverse Effect.

     7.6. INSURANCE. The Borrower will, and will cause each of its Subsidiaries
to, maintain with financially sound and reputable insurers insurance with
respect to its properties and business against such casualties and contingencies
as shall be in accordance with the general practices of businesses engaged in
similar activities in similar geographic areas and in amounts, containing such
terms, in such forms and for such periods as may be reasonable and prudent.

     7.7. TAXES. The Borrower will, and will cause each of its Subsidiaries to,
duly pay and discharge, or cause to be paid and discharged, before the same
shall become overdue, all taxes, assessments and other governmental charges
imposed upon it and its Real Estate, sales and activities, or any part thereof,
or upon the income or profits therefrom, as well as all claims for labor,
materials, or supplies that if unpaid might by law become a Lien or charge upon
any of its property; provided that any such tax, assessment, charge, levy or
claim need not be paid if the validity or amount thereof shall currently be
contested in good faith by appropriate proceedings and if the Borrower or such
Subsidiary shall have set aside on its books adequate reserves with respect
thereto; and provided further that the Borrower and each Subsidiary of the
Borrower will pay all such taxes, assessments, charges, levies or claims
forthwith upon the commencement of proceedings to foreclose any Lien that may
have attached as security therefor except where the failure to pay would not
reasonably be expected to result in a Material Adverse Effect.

     7.8. INSPECTION OF PROPERTIES AND BOOKS, ETC. The Borrower shall permit the
Lenders, through the Administrative Agent or any of the Lenders' other
designated representatives, to visit and inspect any of the properties of the
Borrower or any of its Subsidiaries, to examine the books of account of the
Borrower and its Subsidiaries (and to make copies thereof and extracts
therefrom), and to discuss the affairs, finances and accounts of the Borrower
and its Subsidiaries with, and to be advised as to the same by, its and their
officers, all at such reasonable times and intervals as the Administrative Agent
or any Lender may reasonably request.

     7.9. COMPLIANCE WITH LAWS, CONTRACTS, LICENSES, AND PERMITS. Except as
would not reasonably be expected to result in a Material Adverse Effect, the
Borrower will, and will cause each of its Subsidiaries to, comply with (a) the
applicable laws and regulations wherever its business is conducted, including
all Environmental Laws, (b) the provisions of its Governing Documents, (c) all
agreements and instruments by which it or any of its properties may be bound and
(d) all applicable decrees, orders, and judgments. If any authorization,
consent, approval, permit or license from any officer, agency or instrumentality
of any government shall become necessary or required in order that the Borrower
or any of its Subsidiaries may fulfill any of its obligations hereunder or any
of the other Loan Documents, the Borrower will, or (as the case may be) will
cause such Subsidiary to, immediately take or cause to be taken all reasonable
steps within the power of the Borrower or such Subsidiary to obtain such
authorization, consent,

<PAGE>

                                      -56-

approval, permit or license and furnish the Administrative Agent and the Lenders
with evidence thereof.

     7.10. USE OF PROCEEDS AND MARGIN STOCK.

          7.10.1. GENERAL. The Borrower shall use proceeds of the Loans solely
     for working capital and other lawful corporate purposes and to fund
     repurchases of shares of Capital Stock of the Borrower and acquisitions.
     The Borrower will obtain Letters of Credit solely for working capital and
     general corporate purposes.

          7.10.2. REGULATIONS U AND X. The Borrower covenants and agrees that no
     portion of any Loan shall be used, and no portion of any Letter of Credit
     shall be obtained, for the purpose of purchasing or carrying any "margin
     security" or "margin stock" as such terms are used in Regulations U and X
     of the Board of Governors of the Federal Reserve System, 12 C.F.R. Parts
     221 and 224, to the extent that such use would be in violation of
     Regulation U and/or X.

          7.10.3. MISCELLANEOUS. Notwithstanding anything herein or in any other
     Loan Document, there shall be no restrictions on the sale, pledge or
     disposition of any margin stock (as defined in Section 7.10.2) or any other
     restriction or limitation that would cause margin stock (as defined in
     Section 7.10.2) to indirectly secure the Loans or Letters of Credit
     hereunder (within the meaning of Regulation U).

     7.11. FURTHER ASSURANCES. The Borrower will, and will cause each of its
Subsidiaries to, cooperate with the Lenders and the Administrative Agent and
execute such further instruments and documents as the Lenders or the
Administrative Agent shall reasonably request to carry out to their satisfaction
the transactions contemplated by this Credit Agreement and the other Loan
Documents.

     7.12. PARI PASSU. The Borrower shall ensure that its obligations under the
Loan Documents shall at all times rank at least pari passu with all of its other
present and future unsecured and unsubordinated indebtedness with the exception
of any obligations which are mandatorily preferred by applicable law and not by
contract.

                         8. CERTAIN NEGATIVE COVENANTS.

     The Borrower covenants and agrees that, so long as any Revolving Credit
Loan, Swing Line Loan, Unpaid Reimbursement Obligation or Letter of Credit is
outstanding or any Lender has any obligation to make any Loans or the Fronting
Bank has any obligations to issue, extend, amend or renew any Letters of Credit:

     8.1. RESTRICTIONS ON INDEBTEDNESS.

          8.1.1. RESTRICTIONS ON GUARANTEES. The Borrower will not, and will not
     permit any of its Subsidiaries to, Guarantee the indebtedness or other
     obligations of any other Person; provided, however:

<PAGE>

                                      -57-

          (a) the Borrower and its Subsidiaries may Guarantee the indebtedness
     or other obligations of Subsidiaries of the Borrower so long as at the time
     of entering into any such Guarantee the aggregate amount of indebtedness or
     other obligations Guaranteed by the Borrower and its Subsidiaries shall not
     exceed five percent (5%) of Consolidated Total Assets at such time;

          (b) the Borrower may Guarantee the Subsidiary Letters of Credit; and

          (c) the Borrower may Guarantee Derivative Transactions of its Foreign
     Subsidiaries entered into by any such Foreign Subsidiaries with any Lender;

     provided, however, if, at any time prior to the Final Maturity Date, any
     Subsidiary of the Borrower Guarantees any indebtedness of the Borrower,
     other than the indebtedness under this Credit Agreement, then such
     Subsidiary shall provide, within ten (10) days of entering into such
     Guarantee, to the Administrative Agent, for the benefit of the Lenders, a
     pari passu Guarantee of the Obligations plus Governing Documents and an
     incumbency certificate of such Subsidiary and a favorable legal opinion
     addressed to the Administrative Agent from legal counsel of such
     Subsidiary, each such document in form and substance satisfactory to the
     Administrative Agent (unless such other guaranteed indebtedness is
     subordinated to the Obligations, in which case the Subsidiary guaranty of
     the Obligations shall be senior).

          8.1.2. RESTRICTIONS ON BORROWED MONEY INDEBTEDNESS. The Borrower will
     not, and will not permit any of its Subsidiaries to, incur any Borrowed
     Money Indebtedness; provided, however, (a) the Borrower may incur Borrowed
     Money Indebtedness so long as the material terms of any Borrowed Money
     Indebtedness which is not Borrowed Money Indebtedness relating to the
     deferred purchase price of assets (other than trade payables incurred in
     the ordinary course of business) or in respect of any Synthetic Leases or
     any Capitalized Leases are no more restrictive with respect to covenants
     and events of default or other material terms than the terms and conditions
     set forth in this Credit Agreement with respect to the Obligations; (b)
     Subsidiaries of the Borrower may incur Borrowed Money Indebtedness to the
     Borrower and its Subsidiaries to the extent permitted by Section 8.3 and
     (c) Subsidiaries of the Borrower may incur Borrowed Money Indebtedness to
     Persons other than the Borrower so long as at the time of entering into any
     such Borrowed Money Indebtedness the aggregate amount outstanding of such
     Borrowed Money Indebtedness does not exceed five percent (5%) of
     Consolidated Total Assets at such time.

     8.2. RESTRICTIONS ON LIENS. The Borrower will not, and will not permit any
of its Subsidiaries to, (a) create or incur or suffer to be created or incurred
or to exist any Lien upon any of its property or assets of any character whether
now owned or hereafter acquired, or upon the income or profits therefrom; (b)
transfer any of such property or assets or the income or profits therefrom for
the purpose of subjecting the same to the payment of indebtedness or performance
of any other obligation in priority to payment of its general creditors; (c)
acquire, or agree or have an option to acquire, any property or assets upon
conditional sale or other title retention or purchase money security agreement,
device or arrangement; or (d) suffer to exist for a period of more than sixty
(60) days after the same shall have been incurred any indebtedness or
<PAGE>

                                      -58-

claim or demand against it that if unpaid might by law or upon bankruptcy or
insolvency, or otherwise, be given any priority whatsoever over its general
creditors; provided that the Borrower or any of its Subsidiaries may create or
incur or suffer to be created or incurred or to exist:

               (i) Liens in favor of the Borrower on all or part of the assets
          of Subsidiaries of the Borrower securing indebtedness owing by
          Subsidiaries of the Borrower to the Borrower;

               (ii) Liens to secure taxes, assessments and other government
          charges in respect of obligations not overdue or being contested in
          good faith by appropriate proceedings or Liens on properties to secure
          claims for labor, material or supplies in respect of obligations not
          overdue or being contested in good faith by appropriate proceedings;

               (iii) deposits or pledges made in connection with, or to secure
          payment of, workmen's compensation, unemployment insurance, old age
          pensions or other social security obligations;

               (iv) Liens on properties in respect of judgments or awards that
          have been in force for less than the applicable period for taking an
          appeal so long as execution is not levied thereunder or in respect of
          which the Borrower or such Subsidiary shall at the time in good faith
          be prosecuting an appeal or proceedings for review and in respect of
          which a stay of execution shall have been obtained pending such appeal
          or review;

               (v) Liens of carriers, warehousemen, mechanics and materialmen,
          and other like Liens on properties, in existence less than one hundred
          twenty (120) days from the date of creation thereof in respect of
          obligations not overdue;

               (vi) encumbrances on Real Estate consisting of easements, rights
          of way, zoning restrictions, restrictions on the use of real property
          and defects and irregularities in the title thereto, landlord's or
          lessor's liens and other minor Liens, provided that none of such Liens
          (A) interferes materially with the use of the property affected in the
          ordinary conduct of the business of the Borrower and its Subsidiaries,
          and (B) individually or in the aggregate has a Material Adverse
          Effect;

               (vii) Liens existing on the date hereof and listed on Schedule
          8.2 hereto, including any renewals, refinancings and extensions
          thereof provided that (x) the aggregate amount of indebtedness secured
          by such Liens is not increased by any such renewal, refinancing or
          extension and (y) such indebtedness is not secured by any additional
          assets;

               (viii) purchase money security interests in or purchase money
          mortgages on real or personal property acquired after the date hereof
          by the Borrower or such Subsidiary to secure purchase money
          indebtedness incurred in connection with the acquisition of such
          property or under any Capitalized Lease, which

<PAGE>

                                      -59-

          security interests or mortgages cover only the real or personal
          property so acquired; provided that such purchase money security
          interests in or purchase money mortgages do not secure an aggregate
          amount of purchase money indebtedness (including purchase money
          indebtedness incurred under any Capitalized Lease) in excess often
          percent (10%) of Consolidated Total Assets at such time, which such
          indebtedness is also permitted hereunder;

               (ix) Liens on the Borrower's common stock held in Treasury; and

               (x) other Liens not otherwise permitted hereunder, provided that
          such Liens do not secure indebtedness in an aggregate amount
          outstanding or committed in excess of five percent (5%) of
          Consolidated Total Assets at such time, which such indebtedness is
          also permitted hereunder.

     8.3. RESTRICTIONS ON INVESTMENTS. The Borrower will not, and will not
permit any of its Subsidiaries to, make or permit to exist or to remain
outstanding any Investment except Investments in:

          (a) marketable direct or guaranteed obligations of the United States
     of America that mature within one (1) year from the date of purchase by the
     Borrower;

          (b) demand deposits, certificates of deposit, bank acceptances and
     time deposits of (i) United States banks or trust companies having total
     assets in excess of $1,000,000,000, (ii) any Lender or (iii) a commercial
     bank organized under the laws of any other country which is a member of the
     Organization for Economic Cooperation and Development (the "OECD"), or a
     political subdivision of such country, and having total assets in excess of
     $1,000,000,000, provided that such bank is acting through a branch or
     agency located in the country in which it is organized or another country
     which is a member of the OECD;

          (c) securities commonly known as "commercial paper" issued by a
     corporation organized and existing under the laws of the United States of
     America or any state thereof that at the time of purchase have been rated
     and the ratings for which are not less than "P-2" if rated by Moody's, and
     not less than "A-2" if rated by S & P;

          (d) repurchase agreements with respect to securities described in
     clause (a) above entered into with an office of a bank or trust company
     meeting the criteria specified in clause (b) above;

          (e) money market funds which invest only in securities described in
     clauses (a), (b), (c) and (d) above;

          (f) Investments existing on the date hereof and listed on the
     consolidating balance sheet of the Borrower and its Subsidiaries as of the
     Balance Sheet Date;

          (g) Investments by the Borrower or any of its Subsidiaries consisting
     of a Permitted Acquisition;

<PAGE>

                                      -60-

          (h) Investments consisting of promissory notes received as proceeds of
     asset dispositions permitted by Section 8.5.2;

          (i) Investments consisting of loans and advances to employees not to
     exceed $5,000,000 in the aggregate at any time outstanding;

          (j) sales of inventory among the Borrower and its Subsidiaries in the
     ordinary course of business; and

          (k) other Investments not otherwise permitted hereunder, provided that
     the aggregate amount of all such Investments outstanding at any time shall
     not exceed five percent (5%) of Consolidated Total Assets at such time.

     8.4. RESTRICTED PAYMENTS. The Borrower will not make any Restricted
Payments except that the Borrower may make Restricted Payments so long as, on
the date that the Borrower declares, commits to or makes (in the case of
payments not previously declared or committed to) any such Restricted Payment,
no Default or Event of Default has occurred and is continuing or would result
therefrom. Notwithstanding anything herein to the contrary, this Section 8.4
shall not restrict the Borrower's ability to retire shares of its common stock
held in Treasury.

     8.5. MERGER, CONSOLIDATION AND DISPOSITION OF ASSETS.

          8.5.1. MERGERS AND ACQUISITIONS. The Borrower will not, and will not
     permit any of its Subsidiaries to, become a party to any merger or
     consolidation, or agree to or effect any asset acquisition or stock
     acquisition (other than the acquisition of assets in the ordinary course of
     business consistent with past practices or the acquisition of shares of
     common stock of the Borrower) except:

          (a) the merger or consolidation of one or more of the Subsidiaries of
     the Borrower with and into the Borrower, or the merger, amalgamation or
     consolidation of two or more Subsidiaries of the Borrower; or

          (b) the acquisition of stock or other securities of, or any assets of,
     any Person, provided that:

               (i) no Default or Event of Default has occurred and is continuing
          or would result from such acquisition;

               (ii) such Person is in the same line of business as the Borrower
          and its Subsidiaries or a related business;

               (iii) the board of directors and (if required by applicable law)
          the shareholders, or the equivalent thereof, of the business to be
          acquired has approved such acquisition;

               (iv) not less than ten (10) days prior to the consummation of
          such acquisition, the Borrower shall have delivered to the
          Administrative Agent written

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                                      -61-

          notice of such acquisition, which notice shall provide the
          Administrative Agent with a reasonably detailed description of such
          acquisition;

               (v) not less than ten (10) days prior to the consummation of the
          proposed acquisition, the Borrower shall have delivered to the
          Administrative Agent a Compliance Certificate demonstrating compliance
          with the financial covenants set forth in Section 9 after giving
          effect to such acquisition; and

               (vi) in the event that any proposed acquisition involves a merger
          or consolidation, the Borrower shall be the continuing or surviving
          Person in such merger or consolidation.

          8.5.2. DISPOSITION OF ASSETS. The Borrower will not, and will not
     permit any of its Subsidiaries to, become a party to or agree to or effect
     any disposition of assets, other than (a) (i) the sale of inventory, (ii)
     the licensing of intellectual property and (iii) the disposition of assets,
     in each case in the ordinary course of business consistent with past
     practices, (b) the disposition of shares of common stock of the Borrower,
     and (c) Asset Sales (including sale leaseback transactions); provided that
     in the case of any such Asset Sale, (i) no Default or Event of Default
     shall have occurred and be continuing or would result from such Asset Sale
     and (ii) the total net book value of the assets sold or otherwise disposed
     of in connection with all Asset Sales, over the term of this Credit
     Agreement, shall not exceed an aggregate amount equal to ten percent (10%)
     of Consolidated Total Assets as of the end of the Borrower's prior fiscal
     year. Notwithstanding anything herein to the contrary, except for Permitted
     Factoring Transactions, the Borrower shall not, and shall not permit any of
     its Subsidiaries to, sell or otherwise transfer (A) accounts or general
     intangibles for money due or to become due, (B) chattel paper, instruments
     or documents creating or evidencing a right to payment of money or (C)
     other receivables (collectively "receivables"), whether pursuant to a
     purchase facility or otherwise, other than in connection with the
     disposition of the business operations of such Person relating thereto or a
     disposition of defaulted receivables for collection and not as a financing
     arrangement.

     8.6. DERIVATIVE TRANSACTIONS. The Borrower will not, and will not permit
any of its Subsidiaries to, incur or permit to exist any Derivative Transactions
except in connection with the management of interest rate fluctuation risks and
currency and commodity risks of the Borrower or its Subsidiaries in the ordinary
course of business. Notwithstanding the foregoing, the Borrower or any of its
Subsidiaries may incur or permit to exist Derivative Transactions not otherwise
permitted hereunder so long as the aggregate amount of the obligations of the
Borrower or such Subsidiary under such Derivative Transactions shall not exceed
$10,000,000 at any time. The amount of any obligations at any time of
determination represented under any Derivative Transaction shall be the maximum
amount of any termination or loss payment required to be paid by such Person if
such Derivative Transaction were, at the time of determination, to be terminated
by reason of any event of default or early termination event thereunder, whether
or not such event of default or early termination event has in fact occurred.

     8.7. BUSINESS ACTIVITIES. The Borrower will not, and will not permit any of
its Subsidiaries to, engage in any type of business other than the businesses
conducted by them on

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                                      -62-

the Closing Date and in related businesses. At no time shall more than fifty
percent (50%) of Consolidated Net Income be derived from royalties on account of
licensing the "Timberland" brand.

     8.8. FISCAL YEAR. The Borrower will not, and will not permit any of its
Subsidiaries to, change the date of the end of its fiscal year from December 31
of each year.

     8.9. TRANSACTIONS WITH AFFILIATES. The Borrower will not, and will not
permit any of its Subsidiaries to, engage in any transaction with any Affiliate
(other than for services as employees, officers and directors), including any
contract, agreement or other arrangement providing for the furnishing of
services to or by, providing for rental of real or personal property to or from,
or otherwise requiring payments to or from any such Affiliate or, to the
knowledge of the Borrower, any corporation, partnership, trust or other entity
in which any such Affiliate has a substantial interest or is an officer,
director, trustee or partner, on terms more favorable to such Person than would
have been obtainable on an arm's-length basis in the ordinary course of
business.

                             9. FINANCIAL COVENANTS.

     The Borrower covenants and agrees that, so long as any Revolving Credit
Loan, Swing Line Loan, Unpaid Reimbursement Obligation or Letter of Credit is
outstanding or any Lender has any obligation to make any Loans or the Fronting
Bank has any obligation to issue, extend, amend or renew any Letters of Credit:

     9.1. FIXED CHARGE COVERAGE RATIO. As of the end of any fiscal quarter, the
Fixed Charge Coverage Ratio for the Reference Period then ended shall not be
less than 3.00:1.00.

     9.2. LEVERAGE RATIO. As of the end of any fiscal quarter, the Leverage
Ratio for the Reference Period then ended shall not exceed 2.00:1.00; provided
that the Leverage Ratio shall be calculated on a Pro Forma Basis for the fiscal
quarter in which an acquisition or disposition permitted hereunder occurs and
the three fiscal quarters following such acquisition or disposition.

                             10. CLOSING CONDITIONS.

     The obligations of the Lenders to make the initial Revolving Credit Loans,
the Swing Line Lender to make the initial Swing Line Loans and of the Fronting
Bank to issue, extend, amend or renew any initial Letters of Credit shall be
subject to the satisfaction of the following conditions precedent on or prior to
June 2, 2006:

     10.1. LOAN DOCUMENTS. Each of the Loan Documents shall have been duly
executed and delivered by the respective parties thereto, shall be in full force
and effect and shall be in form and substance satisfactory to the Administrative
Agent and each of the Lenders. The Administrative Agent shall have received a
fully executed copy of each such document.

     10.2. CERTIFIED COPIES OF GOVERNING DOCUMENTS. The Administrative Agent, on
behalf of each of the Lenders, shall have received from the Borrower a copy,
certified by a duly

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                                      -63-

authorized officer of such Person to be true and complete on the Closing Date,
of each of its Governing Documents as in effect on such date of certification.

     10.3. CORPORATE OR OTHER ACTION. All corporate (or other) action necessary
for the valid execution, delivery and performance by the Borrower of this Credit
Agreement and the other Loan Documents shall have been duly and effectively
taken, and evidence thereof satisfactory to the Lenders shall have been provided
to the Administrative Agent on behalf of the Lenders.

     10.4. INCUMBENCY CERTIFICATE. The Administrative Agent, on behalf of each
of the Lenders, shall have received from the Borrower an incumbency certificate,
dated as of the Closing Date, signed by a duly authorized officer of the
Borrower, and giving the name and bearing a specimen signature of each
individual who shall be authorized: (a) to sign, in the name and on behalf of
such Person, each of the Loan Documents to which such Person is or is to become
a party; (b) to make Loan Requests and Conversion Requests and to apply for
Letters of Credit; and (c) to give notices and to take other action on its
behalf under the Loan Documents.

     10.5. COMPLIANCE CERTIFICATE. The Administrative Agent, on behalf of each
of the Lenders, shall have received from the Borrower a duly completed
Compliance Certificate as of the last day of the fiscal quarter of the Borrower
ended on March 31, 2006, signed by a duly authorized officer of the Borrower.

     10.6. OPINION OF COUNSEL. The Administrative Agent, on behalf of each of
the Lenders, shall have received a favorable legal opinion addressed to the
Lenders and the Administrative Agent, dated as of the Closing Date, in form and
substance satisfactory to the Lenders and the Administrative Agent, from Ropes &
Gray LLP, counsel to the Borrower and its Subsidiaries.

     10.7. TERMINATION OF EXISTING CREDIT AGREEMENT. The Administrative Agent,
on behalf of each of the Lenders, shall have received from the Borrower
evidence, in form and substance satisfactory to the Administrative Agent, that
the Existing Credit Agreement has been or concurrently with the Closing Date is
being terminated and all Liens securing obligations under the Existing Credit
Agreement have been or concurrently with the Closing Date are being released.

     10.8. PAYMENT OF FEES. The Borrower shall have paid to the Lenders or the
Administrative Agent, as appropriate, the Fees pursuant to Sections 5.1 and 5.2.

                        11. CONDITIONS TO ALL BORROWINGS.

     The obligations of the Lenders to make any Revolving Credit Loan, the Swing
Line Lender to make any Swing Line Loan and of the Fronting Bank to issue,
extend, amend or renew any Letter of Credit, in each case whether on or after
the Closing Date, shall also be subject to the satisfaction of the following
conditions precedent:

     11.1. REPRESENTATIONS TRUE; NO EVENT OF DEFAULT. Each of the
representations and warranties of any of the Borrower and its Subsidiaries
contained in this Credit Agreement, the other Loan Documents or in any document
or instrument delivered pursuant to or in connection

<PAGE>

                                      -64-

with this Credit Agreement shall be true as of the date as of which they were
made and shall also be true at and as of the time of the making of such Loan or
the issuance of such Letter of Credit, with the same effect as if made at and as
of that time (except (a) to the extent of changes either (i) resulting from
transactions contemplated or not prohibited by this Credit Agreement and the
other Loan Documents or (ii) changes occurring in the ordinary course of
business that singly or in the aggregate do not constitute a Material Adverse
Effect, and (b) to the extent that such representations and warranties relate
expressly to an earlier date) and no Default or Event of Default shall have
occurred and be continuing or would result from the making of such Loan. The
Administrative Agent shall have received a certificate of the Borrower signed by
an authorized officer of the Borrower to such effect.

     11.2. NO LEGAL IMPEDIMENT. No change shall have occurred in any law or
regulations thereunder or interpretations thereof that in the reasonable opinion
of any Lender would make it illegal for such Lender to make such Loan or to
participate in the issuance, amendment, extension or renewal of such Letter of
Credit or in the reasonable opinion of the Fronting Bank would make it illegal
for the Fronting Bank to issue, extend or renew such Letter of Credit.

     11.3. PROCEEDINGS AND DOCUMENTS. All proceedings in connection with the
transactions contemplated by this Credit Agreement, the other Loan Documents and
all other documents incident thereto shall be satisfactory in substance and in
form to the Lenders and to the Administrative Agent and the Administrative
Agent's Special Counsel, and the Lenders, the Administrative Agent and such
counsel shall have received all information and such counterpart originals or
certified or other copies of such documents as the Administrative Agent may
reasonably request.

     11.4. ALTERNATIVE CURRENCY. In the case of a Letter of Credit Borrowing to
be denominated in an Alternative Currency, there shall not have occurred any
change in national or international financial, political or economic conditions
or currency exchange rates or exchange controls which in the reasonable opinion
of the Administrative Agent or the Fronting Bank would make it impracticable for
such Letter of Credit to be denominated in the relevant Alternative Currency.

                    12. EVENTS OF DEFAULT; ACCELERATION; ETC.

     12.1. EVENTS OF DEFAULT AND ACCELERATION. If any of the following events
("Events of Default") shall occur and be continuing:

          (a) the Borrower shall fail to pay any principal of the Loans or any
     Reimbursement Obligation when the same shall become due and payable,
     whether at the stated date of maturity or any accelerated date of maturity
     or at any other date fixed for payment;

          (b) the Borrower or any of its Subsidiaries shall fail to pay any
     interest on the Loans, any Fees, or other sums due hereunder or under any
     of the other Loan Documents, within three (3) Business Days after the same
     shall have become due and payable, whether at the stated date of maturity
     or any accelerated date of maturity or at any other date fixed for
     payment,;

<PAGE>

                                      -65-

          (c) the Borrower shall fail to comply with any of its covenants
     contained in Sections 7.3(a), (b) or (c), the first sentence of 7.5, 7.9,
     7.10, 8 or 9;

          (d) the Borrower or any of its Subsidiaries shall fail to perform any
     term, covenant or agreement contained herein or in any of the other Loan
     Documents (other than those specified elsewhere in this Section 12.1) for
     thirty (30) days after written notice of such failure has been given to the
     Borrower by the Administrative Agent;

          (e) any representation or warranty of the Borrower or any of its
     Subsidiaries in this Credit Agreement or any of the other Loan Documents or
     in any other document or instrument delivered pursuant to or in connection
     with this Credit Agreement shall prove to have been false in any material
     respect upon the date when made or deemed to have been made or repeated;

          (f) the Borrower or any of its Subsidiaries shall fail to pay at
     maturity, or within any applicable period of grace, any obligation for
     borrowed money or credit received or in respect of any Capitalized Leases
     or any Synthetic Leases, individually or in the aggregate which exceeds
     $25,000,000 ("Material Debt"), or fail to observe or perform any material
     term, covenant or agreement contained in any agreement for Material Debt as
     would permit (assuming the giving of appropriate notice if required) the
     holder or holders thereof or of any obligations issued thereunder to
     accelerate the maturity thereof, or any such holder or holders shall
     rescind or shall have a right to rescind the purchase of any such
     obligations constituting Material Debt;

          (g) the Borrower or any of its Subsidiaries shall make an assignment
     for the benefit of creditors, or admit in writing its inability to pay or
     generally fail to pay its debts as they mature or become due, or shall
     petition or apply for the appointment of a trustee or other custodian,
     liquidator or receiver of the Borrower or any of its Subsidiaries or of any
     substantial part of the assets of the Borrower or any of its Subsidiaries
     or shall commence any case or other proceeding relating to the Borrower or
     any of its Subsidiaries under any bankruptcy, reorganization, arrangement,
     insolvency, readjustment of debt, dissolution or liquidation or similar law
     of any jurisdiction, now or hereafter in effect, or shall take any action
     to authorize or in furtherance of any of the foregoing, or if any such
     petition or application shall be filed or any such case or other proceeding
     shall be commenced against the Borrower or any of its Subsidiaries and the
     Borrower or any of its Subsidiaries shall indicate its approval thereof,
     consent thereto or acquiescence therein or such petition or application
     shall not have been dismissed within sixty (60) days following the filing
     thereof;

          (h) a decree or order is entered appointing any such trustee,
     custodian, liquidator or receiver or adjudicating the Borrower or any of
     its Subsidiaries bankrupt or insolvent, or approving a petition in any such
     case or other proceeding, or a decree or order for relief is entered in
     respect of the Borrower or any Subsidiary of the Borrower in an involuntary
     case under federal bankruptcy laws as now or hereafter constituted, which
     shall not have been dismissed or stayed within sixty (60) days after the
     filing thereof;

<PAGE>

                                      -66-

          (i) there shall remain in force, undischarged, unsatisfied and
     unstayed, for more than sixty (60) days, whether or not consecutive, any
     final judgment against the Borrower or any of its Subsidiaries that, with
     other outstanding final judgments, undischarged, against the Borrower or
     any of its Subsidiaries exceeds in the aggregate $15,000,000;

          (j) if any of the Loan Documents shall be cancelled, terminated,
     revoked or rescinded otherwise than in accordance with the terms thereof or
     with the express prior written agreement, consent or approval of the
     Lenders required thereby, or any action at law, suit or in equity or other
     legal proceeding to cancel, revoke or rescind any of the Loan Documents
     shall be commenced by or on behalf of the Borrower or any of its
     Subsidiaries party thereto or any of their respective stockholders, or any
     court or any other governmental or regulatory authority or agency of
     competent jurisdiction shall make a determination that, or issue a
     judgment, order, decree or ruling to the effect that, any one or more of
     the Loan Documents is illegal, invalid or unenforceable in accordance with
     the terms thereof;

          (k) (i) the Borrower or any ERISA Affiliate shall fail to pay when due
     an amount or amounts aggregating in excess of $15,000,000 which it shall
     have become liable to pay under Title IV of ERISA; (ii) notice of intent to
     terminate a Material Plan shall be filed under Title IV of ERISA by the
     Borrower or any ERISA Affiliate, any plan administrator or any combination
     of the foregoing; (iii) 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; (iv) 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; (v) 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 the Borrower and/or any ERISA Affiliate to incur a current
     payment obligation in excess of $15,000,000; or

          (l) a Change of Control shall occur;

then, and in any such event, so long as the same may be continuing, the
Administrative Agent may, and upon the request of the Required Lenders shall, by
notice in writing to the Borrower declare all amounts owing with respect to this
Credit Agreement and the other Loan Documents and all Reimbursement Obligations
to be, and they shall thereupon forthwith become, immediately due and payable
without presentment, demand, protest or other notice of any kind, all of which
are hereby expressly waived by the Borrower; provided that in the event of any
Event of Default specified in Sections 12.1 (g) or 12.1(h), all such amounts
shall become immediately due and payable automatically and without any
requirement of notice from the Administrative Agent or any Lender.

     12.2. TERMINATION OF COMMITMENTS. If any one or more of the Events of
Default specified in Section 12.1(g) or Section 12.1(h) shall occur, any unused
portion of the credit hereunder shall forthwith terminate and each of the
Lenders shall be relieved of all further obligations to make Loans to the
Borrower and the Fronting Bank shall be relieved of all further obligations to
issue,
<PAGE>

                                      -67-

extend, amend or renew Letters of Credit. If any other Event of Default shall
have occurred and be continuing, the Administrative Agent may and, upon the
request of the Required Lenders, shall, by notice to the Borrower, (i) terminate
the unused portion of the credit hereunder, and upon such notice being given
such unused portion of the credit hereunder shall terminate immediately and each
of the Lenders shall be relieved of all further obligations to make Loans and
the Fronting Bank shall be relieved of all further obligations to issue, extend,
amend or renew Letters of Credit and (ii) require the Borrower to Cash
Collateralize the Maximum Drawing Amount of the outstanding Letters of Credit
and the Unpaid Reimbursement Obligations. No termination of the credit hereunder
shall relieve the Borrower or any of its Subsidiaries of any of the Obligations.

     12.3. REMEDIES. In case any one or more of the Events of Default shall have
occurred and be continuing, and whether or not the Lenders shall have
accelerated the maturity of the Loans pursuant to Section 12.1, each Lender, if
owed any amount with respect to the Loans or the Reimbursement Obligations, may,
with the consent of the Required Lenders but not otherwise, proceed to protect
and enforce its rights by suit in equity, action at law or other appropriate
proceeding, whether for the specific performance of any covenant or agreement
contained in this Credit Agreement and the other Loan Documents or any
instrument pursuant to which the Obligations to such Lender are evidenced,
including as permitted by applicable law the obtaining of the ex parte
appointment of a receiver, and, if such amount shall have become due, by
declaration or otherwise, proceed to enforce the payment thereof or any other
legal or equitable right of such Lender. No remedy herein conferred upon any
Lender, the Administrative Agent or any Fronting Bank or purchaser of any Letter
of Credit Participation is intended to be exclusive of any other remedy and each
and every remedy shall be cumulative and shall be in addition to every other
remedy given hereunder or now or hereafter existing at law or in equity or by
statute or any other provision of law.

                          13. THE ADMINISTRATIVE AGENT.

     13.1. APPOINTMENT AND AUTHORITY. Each of the Lenders and the Fronting Bank
hereby irrevocably appoints Bank of America to act on its behalf as the
Administrative Agent hereunder and under the other Loan Documents and authorizes
the Administrative Agent to take such actions on its behalf and to exercise such
powers as are delegated to the Administrative Agent by the terms hereof or
thereof, together with such actions and powers as are reasonably incidental
thereto. The provisions of this Section 13 are solely for the benefit of the
Administrative Agent, the Lenders and the Fronting Bank, and the Borrower shall
not have rights as a third party beneficiary of any of such provisions.

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

<PAGE>

                                      -68-

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

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

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

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

     The Administrative Agent shall not be liable for any action taken or not
taken by it (i) with the consent or at the request of the Required Lenders (or
such other number or percentage of the Lenders as shall be necessary, or as the
Administrative Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Sections 12.2, 12.3 and 15.12) or (ii) in the
absence of its own gross negligence or willful misconduct. The Administrative
Agent shall be deemed not to have knowledge of any Default unless and until
notice describing such Default is given to the Administrative Agent by the
Borrower, a Lender or the Fronting Bank.

     The Administrative Agent shall not be responsible for or have any duty to
ascertain or inquire into (i) any statement, warranty or representation made in
or in connection with this Credit Agreement or any other Loan Document, (ii) the
contents of any certificate, report or other document delivered hereunder or
thereunder or in connection herewith or therewith, (iii) the performance or
observance of any of the covenants, agreements or other terms or conditions set
forth herein or therein or the occurrence of any Default, (iv) the validity,
enforceability, effectiveness or genuineness of this Credit Agreement, any other
Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Sections 10 and 11 or elsewhere
herein, other than to confirm receipt of items expressly required to be
delivered to the Administrative Agent.

     13.4. RELIANCE BY ADMINISTRATIVE AGENT. The Administrative Agent shall be
entitled to rely upon, and shall not incur any liability for relying upon, any
notice, request, certificate, consent, statement, instrument, document or other
writing (including any electronic message, Internet or intranet website posting
or other distribution) believed by it to be genuine and to have been signed,
sent or otherwise authenticated by the proper Person. The Administrative Agent
also may rely upon any statement made to it orally or by telephone and believed
by it to have

<PAGE>

                                      -69-

been made by the proper Person, and shall not incur any liability for relying
thereon. In determining compliance with any condition hereunder to the making of
a Loan, or the issuance of a Letter of Credit, that by its terms must be
fulfilled to the satisfaction of a Lender or the Fronting Bank, the
Administrative Agent may presume that such condition is satisfactory to such
Lender or the Fronting Bank unless the Administrative Agent shall have received
notice to the contrary from such Lender or the Fronting Bank prior to the making
of such Loan or the issuance of such Letter of Credit. The Administrative Agent
may consult with legal counsel, independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it
in accordance with the advice of any such counsel, accountants or experts.

     13.5. DELEGATION OF DUTIES. The Administrative Agent may perform any and
all of its duties and exercise its rights and powers hereunder or under any
other Loan Document by or through any one or more sub-agents appointed by the
Administrative Agent. The Administrative Agent and any such sub-agent may
perform any and all of its duties and exercise its rights and powers by or
through their respective Related Parties. The exculpatory provisions of this
Section 13 shall apply to any such sub-agent and to the Related Parties of the
Administrative Agent and any such sub-agent, and shall apply to their respective
activities in connection with the syndication of the credit facilities provided
for herein as well as activities as Administrative Agent.

     13.6. PAYMENTS.

          13.6.1. PAYMENTS TO ADMINISTRATIVE AGENT. A payment by the Borrower to
     the Administrative Agent hereunder or any of the other Loan Documents for
     the account of any Lender shall constitute a payment to such Lender. The
     Administrative Agent agrees promptly to distribute to each Lender such
     Lender's pro rata share of payments received by the Administrative Agent
     for the account of the Lenders except as otherwise expressly provided
     herein or in any of the other Loan Documents.

          13.6.2. DISTRIBUTION BY ADMINISTRATIVE AGENT. If in the reasonable
     opinion of the Administrative Agent the distribution of any amount received
     by it in such capacity hereunder, under any of the other Loan Documents
     might involve it in liability, it may refrain from making distribution
     until its right to make distribution shall have been adjudicated by a court
     of competent jurisdiction. To the extent that the Administrative Agent
     refrains from making any distribution hereunder, it shall make reasonable
     efforts to invest any such funds held by it in appropriate short-term
     investments for the benefit of the Lenders. If a court of competent
     jurisdiction shall adjudge that any amount received and distributed by the
     Administrative Agent is to be repaid, each Person to whom any such
     distribution shall have been made shall either repay to the Administrative
     Agent its proportionate share of the amount so adjudged to be repaid or
     shall pay over the same in such manner and to such Persons as shall be
     determined by such court.

          13.6.3. DELINQUENT LENDERS. Notwithstanding anything to the contrary
     contained in this Credit Agreement or any of the other Loan Documents, any
     Lender that fails (a) to make available to the Fronting Bank or the
     Administrative Agent its pro rata share of any Loan or to purchase any
     Letter of Credit Participation or (b) to comply with the provisions of
     Section 15.1 with respect to making dispositions and arrangements with the
     other Lenders, where such Lender's share of any payment received, whether
     by setoff or

<PAGE>

                                      -70-

     otherwise, is in excess of its pro rata share of such payments due and
     payable to all of the Lenders, in each case as, when and to the full extent
     required by the provisions of this Credit Agreement, shall be deemed
     delinquent (a "Delinquent Lender") and shall be deemed a Delinquent Lender
     until such time as such delinquency is satisfied. A Delinquent Lender shall
     be deemed to have assigned any and all payments due to it from the
     Borrower, whether on account of outstanding Loans, Unpaid Reimbursement
     Obligations, interest, fees or otherwise, to the remaining nondelinquent
     Lenders for application to, and reduction of, their respective pro rata
     shares of all outstanding Loans and Unpaid Reimbursement Obligations. The
     Delinquent Lender hereby authorizes the Administrative Agent to distribute
     such payments to the nondelinquent Lenders in proportion to their
     respective pro rata shares of all outstanding Loans and Unpaid
     Reimbursement Obligations. A Delinquent Lender shall be deemed to have
     satisfied in full a delinquency when and if, as a result of application of
     the assigned payments to all outstanding Loans and Unpaid Reimbursement
     Obligations of the nondelinquent Lenders, the Lenders' respective pro rata
     shares of all outstanding Loans and Unpaid Reimbursement Obligations have
     returned to those in effect immediately prior to such delinquency and
     without giving effect to the nonpayment causing such delinquency.

     13.7. PURCHASERS OF LETTER OF CREDIT PARTICIPATIONS. The Fronting Bank and
the Administrative Agent may deem and treat the purchaser of any Letter of
Credit Participation as the absolute purchaser thereof for all purposes hereof
until it shall have been furnished in writing with a different name by a
subsequent holder, assignee or transferee.

     13.8. INDEMNITY. The Lenders ratably agree hereby to indemnify and hold
harmless the Administrative Agent and its affiliates from and against any and
all claims, actions and suits (whether groundless or otherwise), losses,
damages, costs, expenses (including any reasonable out-of-pocket expenses for
which the Administrative Agent or such affiliate has not been reimbursed by the
Borrower as required by Section 15.2), and liabilities of every nature and
character arising out of or related to this Credit Agreement or any of the other
Loan Documents or the transactions contemplated or evidenced hereby or thereby,
or the Administrative Agent's actions taken hereunder or thereunder, except to
the extent that any of the same shall be directly caused by the Administrative
Agent's bad faith, willful misconduct or gross negligence.

     13.9. NON-RELIANCE ON ADMINISTRATIVE AGENT AND OTHER LENDERS. Each Lender
and the Fronting Bank acknowledges that it has, independently and without
reliance upon the Administrative Agent or any other Lender or any of their
Related Parties and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this Credit
Agreement. Each Lender and the Fronting Bank also acknowledges that it will,
independently and without reliance upon the Administrative Agent or any other
Lender or any of their Related Parties and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Credit
Agreement, any other Loan Document or any related agreement or any document
furnished hereunder or thereunder.

     13.10. RESIGNATION OF ADMINISTRATIVE AGENT. The Administrative Agent may
resign at any time by giving sixty (60) days prior written notice thereof to the
Lenders, the Fronting Bank and the Borrower. Upon receipt of any such notice of
resignation, the Required Lenders shall

<PAGE>

                                      -71-

have the right to appoint a successor Administrative Agent reasonably acceptable
to the Borrower. Such successor shall be a bank with an office in the United
States, or an Affiliate of any such bank with an office in the United States. If
no such successor shall have been so appointed by the Required Lenders and shall
have accepted such appointment within thirty (30) days after the retiring
Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may on behalf of the Lenders and the Fronting Bank, appoint
a successor Administrative Agent meeting the qualifications set forth above;
provided that if the Administrative Agent shall notify the Borrower and the
Lenders that no qualifying Person has accepted such appointment, then such
resignation shall nonetheless become effective in accordance with such notice
and (1) the retiring Administrative Agent shall be discharged from its duties
and obligations hereunder and under the other Loan Documents (except that in the
case of any collateral security held by the Administrative Agent on behalf of
the Lenders or the Fronting Bank under any of the Loan Documents, the retiring
Administrative Agent shall continue to hold such collateral security until such
time as a successor Administrative Agent is appointed) and (2) all payments,
communications and determinations provided to be made by, to or through the
Administrative Agent shall instead be made by or to each Lender and the Fronting
Bank directly, until such time as the Required Lenders appoint a successor
Administrative Agent as provided for above in this Section. Upon the acceptance
of a successor's appointment as Administrative Agent hereunder, such successor
shall succeed to and become vested with all of the rights, powers, privileges
and duties of the retiring (or retired) Administrative Agent, and the retiring
Administrative Agent shall be discharged from all of its duties and obligations
hereunder or under the other Loan Documents (if not already discharged therefrom
as provided above in this Section). The fees payable by the Borrower to a
successor Administrative Agent shall be the same as those payable to its
predecessor unless otherwise agreed between the Borrower and such successor.
After the retiring Administrative Agent's resignation hereunder and under the
other Loan Documents, the provisions of this Section 13 and Sections 15.2 and
15.3, shall continue in effect, in accordance with their respective terms, for
the benefit of such retiring Administrative Agent, its sub-agents and their
respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while the retiring Administrative Agent was acting as
Administrative Agent.

     Any resignation by Bank of America as Administrative Agent pursuant to this
Section shall also constitute its resignation as Fronting Bank and Swing Line
Lender. Upon the acceptance of a successor's appointment as Administrative Agent
hereunder, (a) such successor shall succeed to and become vested with all of the
rights, powers, privileges and duties of the retiring Fronting Bank and Swing
Line Lender, (b) the retiring Fronting Bank and Swing Line Lender shall be
discharged from all of their respective duties and obligations hereunder or
under the other Loan Documents, and (c) the successor Fronting Bank shall issue
letters of credit in substitution for the Letters of Credit, if any, outstanding
at the time of such succession or make other arrangements satisfactory to the
retiring Fronting Bank to effectively assume the obligations of the retiring
Fronting Bank with respect to such Letters of Credit.

     13.11. ADMINISTRATIVE AGENT MAY FILE PROOFS OF CLAIM. In case of the
pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial,
administrative or like proceeding or any assignment for the benefit of creditors
relative to the Borrower or any of its Subsidiaries, the Administrative Agent
(irrespective of whether the principal of any Loan, Reimbursement Obligation or
Unpaid

<PAGE>

                                      -72-

Reimbursement Obligation shall then be due and payable as herein expressed or by
declaration or otherwise and irrespective of whether the Administrative Agent
shall have made any demand on the Borrower) shall be entitled and empowered, by
intervention in such proceeding, under any such assignment or otherwise

          (a) to file and prove a claim for the whole amount of the principal
     and interest owing and unpaid in respect of the Loans, Reimbursement
     Obligations or Unpaid Reimbursement Obligations and all other Obligations
     that are owing and unpaid and to file such other documents as may be
     necessary or advisable in order to have the claims of the Lenders and the
     Administrative Agent (including any claim for the reasonable compensation,
     expenses, disbursements and advances of the Lenders and the Administrative
     Agent and their respective agents and counsel and all other amounts due the
     Lenders and the Administrative Agent under Sections 2.2, 4.6, 5.1, 5.2 and
     15.2) allowed in such proceeding or under any such assignment; and

          (b) to collect and receive any monies or other property payable or
     deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding or under any such
assignment is hereby authorized by each Lender and the Fronting Bank to make
such payments to the Administrative Agent and, in the event that the
Administrative Agent shall consent to the making of such payments directly to
the Lenders and the Fronting Bank, to pay to the Administrative Agent any amount
due for the reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 2.2, 4.6, 5.1, 5.2 and 15.2.

     Nothing contained herein shall authorize the Administrative Agent to
authorize or consent to or accept or adopt on behalf of any Lender or the
Fronting Bank any plan of reorganization, arrangement, adjustment or composition
affecting the Obligations owed to such Lender or the rights of any Lender or to
authorize the Administrative Agent to vote in respect of the claim of any Lender
in any such proceeding or under any such assignment.

     13.12. NOTIFICATION OF DEFAULTS AND EVENTS OF DEFAULT. Each Lender hereby
agrees that, upon receiving written notice by the Borrower of the existence of a
Default or an Event of Default, it shall promptly notify the Administrative
Agent thereof. The Administrative Agent hereby agrees that upon receipt of any
notice under this Section 13.12 it shall promptly notify the other Lenders of
the existence of such Default or Event of Default.

     13.13. NO OTHER DUTIES, ETC. Anything herein to the contrary
notwithstanding, none of the Book Managers, Arrangers or the Documentation Agent
listed on the cover page hereof shall have any powers, duties or
responsibilities under this Credit Agreement or any of the other Loan Documents,
except in its capacity, as applicable, as the Administrative Agent, a Lender or
the Fronting Bank hereunder.

<PAGE>

                                      -73-

                        14. ASSIGNMENT AND PARTICIPATION.

     14.1. CONDITIONS TO ASSIGNMENT GENERALLY. The provisions of this Credit
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby, except that the
Borrower may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of the Administrative Agent and each
Lender and no Lender may assign or otherwise transfer any of its rights or
obligations hereunder except (i) to an assignee in accordance with the
provisions of Section 14.2, (ii) by way of participation in accordance with the
provisions of Section 14.4, (iii) by way of pledge or assignment of a security
interest subject to the restrictions of Section 14.6, or (iv) to a SPC in
accordance with the provisions of Section 14.8 (and any other attempted
assignment or transfer by any party hereto shall be null and void). Nothing in
this Credit Agreement, expressed or implied, shall be construed to confer upon
any Person (other than the parties hereto, their respective successors and
assigns permitted hereby, Participants to the extent provided in Section 14.4
and, to the extent expressly contemplated hereby, the Related Parties of each of
the Administrative Agent, the Fronting Bank and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Credit Agreement.

     14.2. ASSIGNMENTS BY LENDERS. Any Lender may at any time assign to one or
more assignees all or a portion of its rights and obligations under this Credit
Agreement (including all or a portion of its Commitment and the Loans (including
for purposes of this Section 14.2, participations in Letter of Credit
Participations and in Swing Line Loans) at the time owing to it); provided that
any such assignment shall be subject to the following conditions:

          14.2.1. MINIMUM AMOUNTS.

          (a) in the case of an assignment of the entire remaining amount of the
     assigning Lender's Commitment and the Loans at the time owing to it or in
     the case of an assignment to a Lender, an Affiliate of a Lender or an
     Approved Fund, no minimum amount need be assigned; and

          (b) in any case not described in clause (a) of this subsection, the
     aggregate amount of the Commitment (which for this purpose includes Loans
     outstanding thereunder) or, if the Commitment is not then in effect, the
     principal outstanding balance of the Loans of the assigning Lender subject
     to each such assignment, determined as of the date the Assignment and
     Acceptance with respect to such assignment is delivered to the
     Administrative Agent or, if "Trade Date" is specified in the Assignment and
     Acceptance, as of the Trade Date, shall not be less than $5,000,000 unless
     each of the Administrative Agent and, so long as no Event of Default has
     occurred and is continuing, the Borrower otherwise consents (each such
     consent not to be unreasonably withheld or delayed); provided, however,
     that concurrent assignments to members of an Assignee Group and concurrent
     assignments from members of an Assignee Group to a single assignee (or to
     an assignee and members of its Assignee Group) will be treated as a single
     assignment for purposes of determining whether such minimum amount has been
     met.

          14.2.2. PROPORTIONATE AMOUNTS. Each partial assignment shall be made
     as an assignment of a proportionate part of all the assigning Lender's
     rights and obligations

<PAGE>

                                      -74-

     under this Credit Agreement with respect to the Loans or the Commitment
     assigned, except that this Section 14.2.2 shall not apply to the Swing Line
     Lender's rights and obligations in respect of Swing Line Loans;

          14.2.3. REQUIRED CONSENTS. No consent shall be required for any
     assignment except to the extent required by Section 14.2.1(b) and, in
     addition:

          (a) the consent of the Borrower (such consent not to be unreasonably
     withheld or delayed) shall be required unless (i) an Event of Default has
     occurred and is continuing at the time of such assignment or (ii) such
     assignment is to a Lender, an Affiliate of a Lender or an Approved Fund;

          (b) the consent of the Administrative Agent (such consent not to be
     unreasonably withheld or delayed) shall be required if such assignment is
     to a Person that is not a Lender, an Affiliate of such Person or an
     Approved Fund with respect to such Person;

          (c) the consent of the Fronting Bank (such consent not to be
     unreasonably withheld or delayed) shall be required for any assignment that
     increases the obligation of the assignee to participate in exposure under
     one or more Letters of Credit (whether or not then outstanding); and

          (d) the consent of the Swing Line Lender (such consent not to be
     unreasonably withheld or delayed) shall be required for any assignment.

          14.2.4. ASSIGNMENT AND ACCEPTANCE. The parties to each assignment
     shall execute and deliver to the Administrative Agent an Assignment and
     Acceptance, together with a processing and recordation fee (the "Assignment
     Fee") in the amount of $2,500 for each assignment, or as otherwise set
     forth in Schedule 14.2.4; provided, however, that the Borrower shall not be
     responsible for paying the Assignment Fee, and provided further that the
     Administrative Agent may, in its sole discretion, elect to waive such
     Assignment Fee in the case of any assignment. The assignee, if it is not a
     Lender, shall deliver to the Administrative Agent an Administrative
     Questionnaire.

          14.2.5. NO ASSIGNMENT TO BORROWER. No such assignment shall be made to
     the Borrower or any of the Borrower's Affiliates or Subsidiaries.

          14.2.6. NO ASSIGNMENT TO NATURAL PERSONS. No such assignment shall be
     made to a natural person.

     Subject to acceptance and recording thereof by the Administrative Agent
     pursuant to Section 14.3, from and after the effective date specified in
     each Assignment and Acceptance, the assignee thereunder shall be a party to
     this Credit Agreement and, to the extent of the interest assigned by such
     Assignment and Acceptance, have the rights and obligations of a Lender
     under this Credit Agreement, and the assigning Lender thereunder shall, to
     the extent of the interest assigned by such Assignment and Acceptance, be
     released from its obligations under this Credit Agreement (and, in the case
     of an Assignment and Acceptance covering all of the assigning Lender's
     rights and obligations under this Credit

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                                      -75-

     Agreement, such Lender shall cease to be a party hereto) but shall continue
     to be entitled to the benefits of Sections 5.3.3, 5.7, 5.8 and 15.2 with
     respect to facts and circumstances occurring prior to the effective date of
     such assignment. Any assignment or transfer by a Lender of rights or
     obligations under this Credit Agreement that does not comply with this
     subsection shall be treated for purposes of this Credit Agreement as a sale
     by such Lender of a participation in such rights and obligations in
     accordance with Section 14.4.

     14.3. REGISTER. The Administrative Agent, acting solely for this purpose as
an agent of the Borrower, shall maintain at the Administrative Agent's Office a
copy of each Assignment and Acceptance delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitments of,
and principal amounts of the Loans and Letter of Credit Participations owing to,
each Lender pursuant to the terms hereof from time to time (the "Register"). The
entries in the Register shall be conclusive, in the absence of manifest error,
and the Borrower, the Administrative Agent and the Lenders may treat each Person
whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Credit Agreement, notwithstanding notice to
the contrary. The Register shall be available for inspection by the Borrower and
any Lender, at any reasonable time and from time to time upon reasonable prior
notice.

     14.4. PARTICIPATIONS. Any Lender may at any time, without the consent of,
or notice to, the Borrower or the Administrative Agent, sell participations to
any Person (other than a natural person or the Borrower or any of the Borrower's
Affiliates or Subsidiaries) (each, a "Participant") in all or a portion of such
Lender's rights and/or obligations under this Credit Agreement (including all or
a portion of its Commitment and/or the Loans (including such Lender's
participations in Letter of Credit Participations and/or Swing Line Loans) owing
to it); provided that (i) such Lender's obligations under this Credit Agreement
shall remain unchanged, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations and (iii) the
Borrower, the Administrative Agent, the Lenders and the Fronting Bank shall
continue to deal solely and directly with such Lender in connection with such
Lender's rights and obligations under this Credit Agreement.

Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Credit Agreement and to approve any amendment, modification or
waiver of any provision of this Credit Agreement; provided that such agreement
or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in
Section 15.12(a) that affects such Participant. Subject to Section 14.5, the
Borrower agrees that each Participant shall be entitled to the benefits of
Sections 5.3.3, 5.7 and 5.8 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to Section 14.2. To the extent
permitted by law, each Participant also shall be entitled to the benefits of
Section 15.1 as though it were a Lender, provided such Participant agrees to be
subject to Section 13.6 as though it were a Lender.

     14.5. LIMITATIONS UPON PARTICIPANT RIGHTS. A Participant shall not be
entitled to receive any greater payment under Section 5.3.3 or Section 5.7 than
the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower's prior written consent. A Lender
shall be permitted to sell participations with voting rights, provided that the
voting rights of a

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                                      -76-

Participant shall be limited to approval of those matters pursuant to Section
15.12(a) that directly affect the Participant. A Participant that would be a
Non-U.S. Lender if it were a Lender shall not be entitled to the benefits of
Section 5.3.3 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 5.3.4 as though it were a Lender.

     14.6. CERTAIN PLEDGES. Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Credit
Agreement to secure obligations of such Lender, including any pledge or
assignment to secure obligations to a Federal Reserve Bank; provided that no
such pledge or assignment shall release such Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party
hereto.

     14.7. ELECTRONIC EXECUTION OF ASSIGNMENTS. The words "execution," "signed,"
"signature," and words of like import in any Assignment and Acceptance shall be
deemed to include electronic signatures or the keeping of records in electronic
form, each of which shall be of the same legal effect, validity or
enforceability as a manually executed signature or the use of a paper-based
recordkeeping system, as the case may be, to the extent and as provided for in
any applicable law, including the Federal Electronic Signatures in Global and
National Commerce Act, the New York State Electronic Signatures and Records Act,
or any other similar state laws based on the Uniform Electronic Transactions
Act.

     14.8. SPECIAL PURPOSE FUNDING VEHICLES. Notwithstanding anything to the
contrary contained herein, any Lender (a "Granting Lender") may grant to a
special purpose funding vehicle (a "SPC") of such Granting Lender, identified as
such in writing from time to time by the Granting Lender to the Administrative
Agent and the Borrower, the option to provide to the Borrower all or any part of
any Revolving Credit Loan that such Granting Lender would otherwise be obligated
to make the Borrower pursuant to Sections 2.1 and 3.4.2, provided that (a)
nothing herein shall constitute a commitment to make any Revolving Credit Loan
by any SPC and (b) if a SPC elects not to exercise such option or otherwise
fails to provide all or any part of such Loan, the Granting Lender shall be
obligated to make such Revolving Credit Loan pursuant to the terms hereof. In
the event of any such grant to a SPC by a Granting Lender, such Granting Lender
shall remain responsible for the performance of its obligations hereunder, and
the Borrower and the Administrative Agent shall continue to deal solely and
directly with such Granting Lender in connection with such Granting Lender's
rights and obligations under this Credit Agreement. The making of a Revolving
Credit Loan by a SPC hereunder shall utilize the Commitment of the Granting
Lender to the same extent, and as if, such Revolving Credit Loan were made by
the Granting Lender. Each party hereto hereby agrees that no SPC shall be liable
for any payment under this Credit Agreement for which a Granting Lender would
otherwise be liable. In furtherance of the foregoing, each party hereto hereby
agrees that, prior to the date that is one (1) year and one (1) day after the
later of (i) the payment in full of all outstanding senior indebtedness of any
SPC and (ii) the Final Maturity Date, it will not institute against, or join any
other person in instituting against, such SPC any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings or similar proceedings under
the laws of the United States of America or any State thereof. In addition,
notwithstanding anything to the contrary contained in this Section 14.8, any SPC
may (i) with notice to, but without the prior written consent of, the Borrower
or the Administrative Agent, assign all or a portion of its interests in any
Revolving

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                                      -77-

Credit Loans to its Granting Lender or to any financial institutions providing
liquidity and/or credit facilities to or for the account of such SPC to fund the
Revolving Credit Loans made by such SPC or to support the securities (if any)
issued by such SPC to fund such Revolving Credit Loans and (ii) disclose on a
confidential basis any non-public information relating to its Revolving Credit
Loans (other than financial statements referred to in Sections 6.3 or 7.3) to
any rating agency, commercial paper dealer or provider of a surety, guarantee or
credit or liquidity enhancement to such SPC. In no event shall the Borrower be
obligated to pay to a SPC that has made a Revolving Credit Loan any greater
amount than the Borrower would have been obligated to pay under this Credit
Agreement if the Granting Lender had made such Revolving Credit Loan.

     14.9. RESIGNATION AS FRONTING BANK OR SWING LINE LENDER AFTER ASSIGNMENT.
Notwithstanding anything to the contrary contained herein, if at any time Bank
of America assigns all of its Commitment and Loans pursuant to Section 14.2
above, Bank of America may, (i) upon 30 days' notice to the Borrower and the
Lenders, resign as Fronting Bank and/or (ii) upon 30 days' notice to the
Borrower, resign as Swing Line Lender. In the event of any such resignation as
Fronting Bank or Swing Line Lender, the Borrower shall be entitled to appoint
from among the Lenders a successor Fronting Bank or Swing Line Lender hereunder;
provided, however, that no failure by the Borrower to appoint any such successor
shall affect the resignation of Bank of America as Fronting Bank or Swing Line
Lender, as the case may be. If Bank of America resigns as Fronting Bank, it
shall retain all the rights, powers, privileges and duties of the Fronting Bank
hereunder with respect to all Letters of Credit outstanding as of the effective
date of its resignation as Fronting Bank and all Letter of Credit Participations
with respect thereto (including the right to require the Lenders to make Base
Rate Loans or fund risk participations in the Unpaid Reimbursement Obligations
pursuant to Section 4.2). If Bank of America resigns as Swing Line Lender, it
shall retain all the rights of the Swing Line Lender provided for hereunder with
respect to Swing Line Loans made by it and outstanding as of the effective date
of such resignation, including the right to require the Lenders to make Base
Rate Loans or fund risk participations in outstanding Swing Line Loans pursuant
to Section 3.4. Upon the appointment of a successor Fronting Bank and/or Swing
Line Lender, (a) such successor shall succeed to and become vested with all of
the rights, powers, privileges and duties of the retiring Fronting Bank or Swing
Line Lender, as the case may be, and (b) the successor Fronting Bank shall issue
letters of credit in substitution for the Letters of Credit, if any, outstanding
at the time of such succession or make other arrangements satisfactory to Bank
of America to effectively assume the obligations of Bank of America with respect
to such Letters of Credit.

                     15. PROVISIONS OF GENERAL APPLICATIONS.

     15.1. SETOFF. Regardless of the adequacy of any collateral, if any of the
Obligations are due and payable and have not been paid or any Event of Default
shall have occurred, any deposits or other sums credited by or due from any of
the Lenders to the Borrower and any securities or other property of the Borrower
in the possession of such Lender may be applied to or set off by such Lender
without further notice to the Borrower against the payment of Obligations
whether direct, or indirect, absolute or contingent, due or to become due, now
existing or hereafter arising, of the Borrower to such Lender; provided however
that such Lender shall advise the Borrower and the Administrative Agent promptly
after making any set off.. ANY AND ALL RIGHTS TO REQUIRE ANY LENDER TO EXERCISE
ITS RIGHTS

<PAGE>

                                      -78-

OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS,
PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS
OR OTHER PROPERTY OF THE BORROWER ARE HEREBY KNOWINGLY, VOLUNTARILY AND
IRREVOCABLY WAIVED. Each of the Lenders agrees with each other Lender that if
any Lender shall receive from the Borrower, whether by voluntary payment,
exercise of the right of setoff, counterclaim, cross action, enforcement of the
claim constituting the Obligations owed to such Lender by proceedings against
the Borrower at law or in equity or by proof thereof in bankruptcy,
reorganization, liquidation, receivership or similar proceedings, or otherwise,
and shall retain and apply such amount to the payment of the Obligations owed to
such Lender in excess of its ratable portion of the payments received by all of
the Lenders with respect to the Obligations owed to all of the Lenders, such
Lender will make such disposition and arrangements with the other Lenders with
respect to such excess, either by way of distribution, pro tanto assignment of
claims, subrogation or otherwise as shall result in each Lender receiving in
respect of the Obligations owed it, its proportionate payment as contemplated by
this Credit Agreement; provided that if all or any part of such excess payment
is thereafter recovered from such Lender, such disposition and arrangements
shall be rescinded and the amount restored to the extent of such recovery, but
without interest.

     15.2. EXPENSES. The Borrower agrees to pay (a) the reasonable costs of
producing and reproducing this Credit Agreement, the other Loan Documents and
the other agreements and instruments mentioned herein (but in any event not
including any indirect charges such as overhead charges), (b) any taxes
(including any interest and penalties in respect thereto) payable by the
Administrative Agent, any Fronting Bank or any of the Lenders (other than taxes
based upon the Administrative Agent's, any Fronting Bank's or any Lender's net
income) on or with respect to the transactions contemplated by this Credit
Agreement (the Borrower hereby agreeing to indemnify the Administrative Agent,
each Fronting Bank and each Lender with respect thereto), (c) the reasonable
fees, expenses and disbursements of the Administrative Agent's Special Counsel
incurred in connection with the preparation, syndication, administration or
interpretation of the Loan Documents and other instruments mentioned herein,
each closing hereunder, any amendments, modifications, approvals, consents or
waivers hereto or hereunder, or the cancellation of any Loan Document upon
payment in full in cash of all of the Obligations or pursuant to any terms of
such Loan Document for providing for such cancellation, (d) the fees, reasonable
out-of-pocket expenses and disbursements of the Administrative Agent and the
Lead Arranger or any of their affiliates incurred by the Administrative Agent,
the Lead Arranger or such affiliate in connection with the preparation,
syndication, administration or interpretation of the Loan Documents and other
instruments mentioned herein (but in any event not including any indirect
charges such as overhead charges), (e) all reasonable out-of-pocket expenses
(including without limitation reasonable attorneys' fees and costs, which
attorneys may not be employees of any Lender, any Fronting Bank or the
Administrative Agent, such fees and costs being limited to the fees and costs of
one firm of outside legal counsel for the Administrative Agent, one firm of
outside legal counsel for the Lenders and such local counsel for the
Administrative Agent as may be necessary under the circumstances (except that
such limitation on the number of firms shall not apply in the event of a
material conflict of interest), and reasonable consulting, accounting,
appraisal, investment bankruptcy and similar professional fees and charges but
in any event not including any indirect charges such as overhead charges)
incurred by any Lender, any Fronting Bank or the Administrative Agent in
connection with (i) the enforcement of or preservation of

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                                      -79-

rights under any of the Loan Documents against the Borrower or any of its
Subsidiaries or the administration thereof after the occurrence of a Default or
Event of Default and (ii) any litigation, proceeding or dispute whether arising
hereunder or otherwise, in any way related to any Lender's, any Fronting Bank's
or the Administrative Agent's relationship with the Borrower or any of its
Subsidiaries and (f) all reasonable fees, expenses and disbursements of any
Lender or the Administrative Agent incurred in connection with UCC searches made
on or prior to the Closing Date and after the occurrence and during the
continuance of any Event of Default (but in any event not including any indirect
charges such as overhead charges). The covenants contained in this Section 15.2
shall survive payment or satisfaction in full of all other Obligations.

     15.3. INDEMNIFICATION. The Borrower shall indemnify the Administrative
Agent (and any sub-agent thereof), each Lender and the Fronting Bank, and each
Related Party of any of the foregoing Persons (each such Person being called an
"Indemnitee") against, and hold each Indemnitee harmless from, any and all
losses, claims, damages, liabilities and related expenses (including the
reasonable fees, charges and disbursements of one firm of outside legal counsel
for the Administrative Agent, one firm of outside legal counsel for the Lenders
and such local counsel for the Administrative Agent as may be necessary under
the circumstances, except that such limitation on the number of firms shall not
apply in the event of a material conflict of interest) incurred by any
Indemnitee or asserted against any Indemnitee by any third party or by the
Borrower arising out of, in connection with, or as a result of (i) the execution
or delivery of this Credit Agreement, any other Loan Document or any agreement
or instrument contemplated hereby or thereby, the performance by the parties
hereto of their respective obligations hereunder or thereunder, the consummation
of the transactions contemplated hereby or thereby, or, in the case of the
Administrative Agent (and any sub-agent thereof) and its Related Parties only,
the administration of this Credit Agreement and the other Loan Documents, (ii)
any Loan or Letter of Credit or the use or proposed use of the proceeds
therefrom (including any refusal by the Fronting 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),
(iii) any actual or alleged presence or release of Hazardous Substances on or
from any property owned or operated by the Borrower or any of its Subsidiaries,
or any Environmental Liability, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory, whether brought by a third
party or by the Borrower, and regardless of whether any Indemnitee is a party
thereto; provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or
related expenses (x) are determined by a court of competent jurisdiction by
final and nonappealable judgment to have resulted from the gross negligence or
willful misconduct of such Indemnitee or (y) result from a claim brought by the
Borrower against an Indemnitee for (i) breach in bad faith of such Indemnitee's
obligations hereunder or under any other Loan Document or (ii) gross negligence
or willful misconduct by such Indemnitee, in each case, if the Borrower has
obtained a final and nonappealable judgment in its favor on such claim as
determined by a court of competent jurisdiction.

     15.4. TREATMENT OF CERTAIN INFORMATION; CONFIDENTIALITY. Each of the
Administrative Agent, the Lenders and the Fronting Bank agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its Affiliates and to its and its Affiliates' respective
partners, directors, officers, employees, agents, advisors and representatives
(it being understood that the Persons to whom such disclosure is

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                                      -80-

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 purporting to have jurisdiction over it (including
any self-regulatory authority, such as the National Association of Insurance
Commissioners), (c) to the extent required by applicable laws or regulations or
by any subpoena or similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies hereunder or under any other Loan
Document or any action or proceeding relating to this Credit Agreement or any
other Loan Document or the enforcement of rights hereunder or thereunder, to the
extent required for such purposes, (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 Credit Agreement or (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 (x) becomes publicly available
other than as a result of a breach of this Section or (y) becomes available to
the Administrative Agent, any Lender, the Fronting Bank or any of their
respective Affiliates on a non-confidential basis from a source other than the
Borrower.

     For purposes of this Section, "Information" means all information received
from the Borrower or any Subsidiary relating to the Borrower or any Subsidiary
or any of their respective businesses, other than any such information that is
available to the Administrative Agent, any Lender or the Fronting Bank on a
non-confidential basis prior to disclosure by the Borrower or any Subsidiary,
provided that, in the case of information received from the Borrower or any
Subsidiary after the date hereof (other than Borrower Materials, which shall be
addressed as provided in Section 7.3), 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 exercise the
same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

     Each of the Administrative Agent, the Lenders and the Fronting Bank
acknowledges that (a) the Information may include material non-public
information concerning the Borrower or a Subsidiary, as the case may be, (b) it
has developed compliance procedures regarding the use of material non-public
information and (c) it will handle such material non-public information in
accordance with applicable Law, including Federal and state securities Laws.

     15.5. SURVIVAL OF COVENANTS, ETC. All covenants, agreements,
representations and warranties made herein, in any of the other Loan Documents
or in any documents or other papers delivered by or on behalf of the Borrower or
any of its Subsidiaries pursuant hereto shall be deemed to have been relied upon
by the Lenders, the Fronting Bank(s) and the Administrative Agent,
notwithstanding any investigation heretofore or hereafter made by any of them,
and shall survive the making by the Lenders of any of the Loans and the
issuance, extension, amendment or renewal of any Letters of Credit, as herein
contemplated, and shall continue in full force and effect so long as any Letter
of Credit or any amount due under this Credit Agreement or any of the other Loan
Documents remains outstanding or any Lender has any obligation to make any Loans
or the Fronting Bank has any obligation to issue, extend, amend or renew any
Letter of Credit, and for such further time as may be otherwise expressly
specified in this Credit Agreement.

<PAGE>

                                      -81-

     15.6. NOTICES.

          15.6.1. NOTICES GENERALLY. Except as otherwise expressly provided in
     this Credit Agreement (and except as provided in Section 15.6.2 below), all
     notices and other communications made or required to be given pursuant to
     this Credit Agreement or any Letter of Credit Applications shall be in
     writing and shall be delivered in hand, mailed by United States registered
     or certified first class mail, postage prepaid, sent by overnight courier,
     or sent by telecopy or facsimile and confirmed by delivery via courier or
     postal service, addressed as follows:

          (a) if to the Borrower, at 200 Domain Drive, Stratham, New Hampshire
     03885, Attention: Gregory Saltzberg, Vice President and Treasurer, or at
     such other address for notice as the Borrower shall last have furnished in
     writing to the Person giving the notice, with a copy to (i) General
     Counsel, The Timberland Company, 200 Domain Drive, Stratham, New Hampshire
     and (ii) Ropes & Gray LLP, One International Place, Boston, Massachusetts
     02110-2624, Attention: Jane Goldstein;

          (b) if to the Administrative Agent, at the address specified on
     Schedule 15.6, or such other address for notice as the Administrative Agent
     shall last have furnished in writing to the Person giving the notice, with
     a copy to Amy Kyle, Bingham McCutchen LLP, 150 Federal Street, Boston,
     Massachusetts 02110;

          (c) if to any Fronting Bank, at such Fronting Bank's address set forth
     on Schedule 1 hereto, or such other address for notice as such Fronting
     Bank shall have last furnished in writing to the Person giving the notice;
     and

          (d) if to any Lender, at such Lender's address set forth on Schedule 1
     hereto, or such other address for notice as such Lender shall have last
     furnished in writing to the Person giving the notice.

     Any such notice or demand shall be deemed to have been duly given or made
     and to have become effective (i) if delivered by hand, overnight courier or
     facsimile to a responsible officer of the party to which it is directed, at
     the time of the receipt thereof by such officer or the sending of such
     facsimile and (ii) if sent by registered or certified first-class mail,
     postage prepaid, on the third Business Day following the mailing thereof.

          15.6.2. ELECTRONIC COMMUNICATIONS. Any notice or other communication
     to be made hereunder or under any Letter of Credit Applications, even if
     otherwise required to be in writing under other provisions of this Credit
     Agreement, may alternatively be made in an electronic record transmitted
     electronically under such authentication and other procedures as the
     parties hereto may from time to time agree in writing (but not an
     electronic record), and such electronic transmission shall be effective at
     the time set forth in such procedures. Unless otherwise expressly provided
     in such procedures, such an electronic record shall be equivalent to a
     writing under the other provisions of this Credit Agreement or any Letter
     of Credit Applications, and such authentication, if made in compliance with
     the procedures so agreed by the parties hereto in writing (but not an

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                                      -82-

     electronic record), shall be equivalent to a signature under the other
     provisions of this Credit Agreement or any Letter of Credit Applications.

     Unless the Administrative Agent otherwise prescribes, (i) notices and other
     communications sent to an e-mail address shall be deemed received upon the
     sender's receipt of an acknowledgement from the intended recipient (such as
     by the "return receipt requested" function, as available, return e-mail or
     other written acknowledgement), provided that if such notice or other
     communication is not sent during the normal business hours of the
     recipient, such notice or communication shall be deemed to have been sent
     at the opening of business on the next business day for the recipient, and
     (ii) notices or communications posted to an Internet or intranet website
     shall be deemed received by any Lender upon the deemed receipt by the
     intended recipient at its e-mail address as described in the foregoing
     clause (i) of notification that such notice or communication is available
     and identifying the website address therefor.

          15.6.3. THE PLATFORM. THE PLATFORM IS PROVIDED "AS IS" AND "AS
     AVAILABLE." THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE
     ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE
     PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM
     THE BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR
     STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A
     PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM
     VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION
     WITH THE BORROWER MATERIALS OR THE PLATFORM. In no event shall the
     Administrative Agent or any of its Related Parties (collectively, the
     "Agent Parties") have any liability to the Borrower, any Lender, the
     Fronting Bank or any other Person for losses, claims, damages, liabilities
     or expenses of any kind (whether in tort, contract or otherwise) arising
     out of the Borrower's or the Administrative Agent's transmission of
     Borrower Materials through the Internet, except to the extent that such
     losses, claims, damages, liabilities or expenses are determined by a court
     of competent jurisdiction by a final and nonappealable judgment to have
     resulted from the gross negligence or willful misconduct of such Agent
     Party; provided, however, that in no event shall any Agent Party have any
     liability to the Borrower, any Lender, the Fronting Bank or any other
     Person for indirect, special, incidental, consequential or punitive damages
     (as opposed to direct or actual damages).

          15.6.4. RELIANCE BY ADMINISTRATIVE AGENT, FRONTING BANK AND LENDERS.
     The Administrative Agent, the Fronting Bank and the Lenders shall be
     entitled to rely and act upon any notices which the Administrative Agent,
     the Fronting Bank and/or the Lenders, as applicable, believe in good faith
     to have been given by or on behalf of the Borrower even if (i) such notices
     were not made in a manner specified herein, were incomplete or were not
     preceded or followed by any other form of notice specified herein, or (ii)
     the terms thereof, as understood by the recipient, varied from any
     confirmation thereof. The Borrower shall indemnify the Administrative
     Agent, the Fronting Bank, each Lender and the Related Parties of each of
     them from all losses, costs, expenses and liabilities

<PAGE>

                                      -83-

     resulting from the reliance by such Person on each notice purportedly given
     by or on behalf of the Borrower. All telephonic notices to and other
     telephonic communications with the Administrative Agent may be recorded by
     the Administrative Agent, and each of the parties hereto hereby consents to
     such recording.

     15.7. GOVERNING LAW. THIS CREDIT AGREEMENT AND, EXCEPT AS OTHERWISE
SPECIFICALLY PROVIDED THEREIN, EACH OF THE OTHER LOAN DOCUMENTS ARE CONTRACTS
UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL, PURSUANT TO NEW YORK GENERAL
OBLIGATIONS LAW SECTION 5-1401, BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE LAWS OF SAID STATE OF NEW YORK (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS
OR CHOICE OF LAW). THE BORROWER AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS
CREDIT AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS MAY BE BROUGHT IN THE COURTS
OF THE STATE OF NEW YORK OR ANY FEDERAL COURT SITTING THEREIN AND CONSENTS TO
THE NONEXCLUSIVE JURISDICTION OF SUCH COURT AND SERVICE OF PROCESS IN ANY SUCH
SUIT BEING MADE UPON THE BORROWER BY MAIL AT THE ADDRESS SPECIFIED IN SECTION
15.6. THE BORROWER HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE
TO THE VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN
AN INCONVENIENT COURT.

     15.8. HEADINGS. The captions in this Credit Agreement are for convenience
of reference only and shall not define or limit the provisions hereof.

     15.9. COUNTERPARTS. This Credit Agreement and any amendment hereof may be
executed in several counterparts and by each party on a separate counterpart,
each of which when executed and delivered shall be an original, and all of which
together shall constitute one instrument. Delivery by facsimile by any of the
parties hereto of an executed counterpart hereof or of any amendment or waiver
hereto shall be as effective as an original executed counterpart hereof or of
such amendment or waiver and shall be considered a representation that an
original executed counterpart hereof or such amendment or waiver, as the case
may be, will be delivered.

     15.10. ENTIRE AGREEMENT, ETC. The Loan Documents and any other documents
executed in connection herewith or therewith express the entire understanding of
the parties with respect to the transactions contemplated hereby. Neither this
Credit Agreement nor any term hereof may be changed, waived, discharged or
terminated, except as provided in Section 15.12.

     15.11. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS CREDIT AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE,

<PAGE>

                                      -84-

THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE WAIVERS IN THIS SECTION 15.11 AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS CREDIT AGREEMENT AND THE
OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION. Except as prohibited by law, the Borrower hereby
waives any right it may have to claim or recover in any litigation referred to
in this Section 15.11 any (a) consequential damages or any damages other than,
or in addition to, actual damages (other than as a result of the Administrative
Agent's, any Fronting Bank's or any Lender's bad faith, gross negligence or
willful misconduct) and (b) special, exemplary or punitive damages.

     15.12. CONSENTS, AMENDMENTS, WAIVERS, ETC. Any consent or approval required
or permitted by this Credit Agreement to be given by the Lenders may be given,
and any term of this Credit Agreement, the other Loan Documents or any other
instrument related hereto or mentioned herein may be amended, and the
performance or observance by the Borrower or any of its Subsidiaries of any
terms of this Credit Agreement, the other Loan Documents or such other
instrument or the continuance of any Default or Event of Default may be waived
(either generally or in a particular instance and either retroactively or
prospectively) with, but only with, the written consent of the Borrower and the
written consent of the Required Lenders. Notwithstanding the foregoing, no
amendment, modification or waiver shall:

          (a) without the written consent of the Borrower and each Lender
     directly affected thereby:

               (i) reduce or forgive the principal amount of any Revolving
          Credit Loans or Reimbursement Obligations, or reduce the rate of
          interest on the Revolving Credit Loans or the amount of the Facility
          Fee, Letter of Credit Fees, or the Utilization Fee (other than
          interest accruing pursuant to Section 5.9.2 following the effective
          date of any waiver by the Required Lenders of the Default or Event of
          Default relating thereto);

               (ii) increase the amount of such Lender's Commitment or extend
          the expiration date of such Lender's Commitment; and

               (iii) postpone or extend the Final Maturity Date or any other
          regularly scheduled dates for payments of principal of, or interest
          on, the Revolving Credit Loans or Reimbursement Obligations or any
          Fees or other amounts payable to such Lender (it being understood that
          (A) a waiver of the application of the default rate of interest
          pursuant to Section 5.9.2, and (B) any vote to rescind any
          acceleration made pursuant to Section 12.1 of amounts owing with
          respect to the Revolving Credit Loans and other Obligations shall
          require only the approval of the Required Lenders);

          (b) without the written consent of all of the Lenders, amend or waive
     (i) provisions of this Section 15.12 which require the consent of all of
     the Lenders or (ii) the definition of "Required Lenders";

<PAGE>

                                      -85-

          (c) without the written consent of the Swing Line Lender, amend or
     waive Section 3, the amount or time of payment of the Swing Line Loans or
     any other provision adversely affecting the obligations of the Swing Line
     Lender with respect to Swing Line Loans;

          (d) without the written consent of the Administrative Agent, amend or
     waive Section 13, the amount or time of payment of the Administrative
     Agency Fee payable for the Administrative Agent's account or any other
     provision adversely affecting the rights or obligations of the
     Administrative Agent;

          (e) without the written consent of the Fronting Bank, amend or waive
     any Letter of Credit Fees payable for the Fronting Bank's account or any
     provision adversely affecting the obligations of the Fronting Bank with
     respect to Letters of Credit; or

          (f) without the written consent of each Lender, amend Section 1.3 or
     the definition of "Alternative Currency".

No waiver shall extend to or affect any obligation not expressly waived or
impair any right consequent thereon. No course of dealing or delay or omission
on the part of the Administrative Agent, any Fronting Bank or any Lender in
exercising any right shall operate as a waiver thereof or otherwise be
prejudicial thereto. No notice to or demand upon the Borrower shall entitle the
Borrower to other or further notice or demand in similar or other circumstances.

     15.13. NO ADVISORY OR FIDUCIARY RESPONSIBILITY. In connection with all
aspects of each transaction contemplated hereby, the Borrower acknowledges and
agrees, and acknowledges its Affiliates' understanding, that: (i) the credit
facility provided for hereunder and any related arranging or other services in
connection therewith (including in connection with any amendment, waiver or
other modification hereof or of any other Loan Document) are an arm's-length
commercial transaction between the Borrower and its Affiliates, on the one hand,
and the Administrative Agent and the Lead Arranger, on the other hand, and the
Borrower is capable of evaluating and understanding and understands and accepts
the terms, risks and conditions of the transactions contemplated hereby and by
the other Loan Documents (including any amendment, waiver or other modification
hereof or thereof); (ii) in connection with the process leading to such
transaction, the Administrative Agent and Lead Arranger each is and has been
acting solely as a principal and is not the financial advisor, agent or
fiduciary, for the Borrower or any of its Affiliates, stockholders, creditors or
employees or any other Person; (iii) neither the Administrative Agent nor the
Lead Arranger has assumed or will assume an advisory, agency or fiduciary
responsibility in favor of the Borrower with respect to any of the transactions
contemplated hereby or the process leading thereto, including with respect to
any amendment, waiver or other modification hereof or of any other Loan Document
(irrespective of whether the Administrative Agent or the Lead Arranger has
advised or are currently advising the Borrower or any of its Affiliates on other
matters) and neither the Administrative Agent nor the Lead Arranger has any
obligation to the Borrower or any of its Affiliates with respect to the
transactions contemplated hereby except those obligations expressly set forth
herein and in the other Loan Documents; (iv) the Administrative Agent and the
Lead Arranger and their respective Affiliates may be engaged in a broad range of
transactions that involve interests that differ from those of the Borrower and
its Affiliates, and neither the Administrative Agent nor the Lead Arranger has
any obligation to disclose any of such interests by virtue of any advisory,
agency or

<PAGE>

                                      -86-

fiduciary relationship; and (v) the Administrative Agent and the Lead Arranger
have not provided and will not provide any legal, accounting, regulatory or tax
advice with respect to any of the transactions contemplated hereby (including
any amendment, waiver or other modification hereof or of any other Loan
Document) and the Borrower has consulted its own legal, accounting, regulatory
and tax advisors to the extent it has deemed appropriate. The Borrower hereby
waives and releases, to the fullest extent permitted by law, any claims that it
may have against the Administrative Agent and the Lead Arranger with respect to
any breach or alleged breach of agency or fiduciary duty.

     15.14. USA PATRIOT ACT NOTICE. Each Lender that is subject to the Patriot
Act (as hereinafter defined) and the Administrative Agent (for itself and not on
behalf of any Lender) hereby notifies the Borrower that pursuant to the
requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the "Patriot 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
Lender or the Administrative Agent, as applicable, to identify the Borrower in
accordance with the Patriot Act.

     15.15. SEVERABILITY. The provisions of this Credit Agreement are severable
and if any one clause or provision hereof shall be held invalid or unenforceable
in whole or in part in any jurisdiction, then such invalidity or
unenforceability shall affect only such clause or provision, or part thereof, in
such jurisdiction, and shall not in any manner affect such clause or provision
in any other jurisdiction, or any other clause or provision of this Credit
Agreement in any jurisdiction.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

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

                                        THE TIMBERLAND COMPANY

                                        By: /s/ Gregory M. Saltzberg
                                            ------------------------------------
                                        Name: Gregory M. Saltzberg
                                        Title: Treasurer

                       Signature Page to Credit Agreement
<PAGE>

                                        BANK OF AMERICA, N.A., as Administrative
                                        Agent

                                        By: /s/ Mollie S. Canup
                                            ------------------------------------
                                        Name: Mollie S. Canup
                                        Title: Vice President

                                        BANK OF AMERICA, N.A., as a Lender

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                       Signature Page to Credit Agreement

<PAGE>

                                        BANK OF AMERICA, N.A., as Administrative
                                        Agent

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        BANK OF AMERICA, N.A., as a Lender

                                        By: /s/ Sharon Burks Haros
                                            ------------------------------------
                                        Name: Sharon Burks Haros
                                        Title: Vice President

                       Signature Page to Credit Agreement

<PAGE>

                                        WACHOVIA BANK, NATIONAL ASSOCIATION

                                        By: /s/ Martha M. Winters
                                            ------------------------------------
                                        Name: Martha M. Winters
                                        Title: Director

<PAGE>

                                        JPMORGAN CHASE BANK, N.A.

                                        By: /s/ Jules Panno
                                            ------------------------------------
                                        Name: Jules Panno
                                        Title: Vice President

                       Signature Page to Credit Agreement

<PAGE>

                                        THE NORTHERN TRUST COMPANY

                                        By: /s/ Ashish S. Bhagwat
                                            ------------------------------------
                                        Name: ASHISH S. BHAGWAT
                                        Title: VICE PRESIDENT

                                        SANPAOLO IMI S.P.A.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                       Signature Page to Credit Agreement

<PAGE>

                                        THE NORTHERN TRUST COMPANY

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        SANPAOLO IMI S.P.A.

                                        By: /s/ Remato Carducci
                                            ------------------------------------
                                        Name: Remato Carducci
                                        Title: General Manager

                                        By: /s/ Luca Sacchi
                                            ------------------------------------
                                        Name: Luca Sacchi
                                        Title: Vice President

                       Signature Page to Credit Agreement

<PAGE>

                                        HSBC BANK USA, N.A.

                                        By: /s/ Dan Lobdell
                                            ------------------------------------
                                        Name: DAN LOBDELL
                                        Title: VICE PRESIDENT

                                        THE BANK OF NEW YORK

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        U.S. BANK NATIONAL ASSOCIATION

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        CITIZENS BANK NEW HAMPSHIRE

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                       Signature Page to Credit Agreement

<PAGE>

                                        HSBC BANK USA, N.A.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        THE BANK OF NEW YORK

                                        By: /s/ Scott Detraglia
                                            ------------------------------------
                                        Name: SCOTT DETRAGLIA
                                        Title: VICE PRESIDENT

                                        U.S. BANK NATIONAL ASSOCIATION

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        CITIZENS BANK NEW HAMPSHIRE

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                       Signature Page to Credit Agreement

<PAGE>

                                        HSBC BANK USA, N.A.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        THE BANK OF NEW YORK

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        U.S. BANK NATIONAL ASSOCIATION

                                        By: /s/ Heather Hinkelman
                                            ------------------------------------
                                        Name: Heather Hinkelman
                                        Title: Banking Officer

                                        CITIZENS BANK NEW HAMPSHIRE

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                       Signature Page to Credit Agreement

<PAGE>

                                        HSBC BANK USA, N.A.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        THE BANK OF NEW YORK

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        U.S. BANK NATIONAL ASSOCIATION

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        CITIZENS BANK NEW HAMPSHIRE

                                        By: /s/ Jeanne Hulit
                                            ------------------------------------
                                        Name: JEANNE HULIT
                                        Title: Vice President

                       Signature Page to Credit Agreement

<PAGE>

                                   SCHEDULE 1

                             LENDERS AND COMMITMENTS

<TABLE>
<CAPTION>
                                                            COMMITMENT
                  LENDERS                     COMMITMENT    PERCENTAGE
                  -------                    ------------   ----------
<S>                                          <C>            <C>
BANK OF AMERICA, N.A.                        $ 32,500,000     16.25%
Domestic Lending Office:
2001 Clayton Road, 2nd Floor
CA4-702-02-05
Concord, CA 94520
Tel: (925) 675-8062
Fax: (888) 969-9237
Attention: Petra G. Rubio

Eurodollar Lending Office: Same as above.

WACHOVIA BANK NATIONAL ASSOCIATION           $ 32,500,000     16.25%
Domestic Lending Office:
201 S. College Street
Charlotte, NC 28244-0002

Eurodollar Lending Office: Same as above.

JPMORGAN CHASE BANK, N.A.                    $ 24,000,000     12.00%
Domestic Lending Office:
277 Park Ave., 14th Floor
New York, NY 10172
Attention: Jules Panno, Senior Underwriter

Eurodollar Lending Office: Same as above.

CITIZENS BANK NEW HAMPSHIRE                  $ 18,500,000      9.25%
Domestic Lending Office:
875 Elm Street
Manchester, NH 03101
Attention: Jeanne Hulit, Vice President

Eurodollar Lending Office: Same as above.

THE NORTHERN TRUST COMPANY                   $ 18,500,000      9.25%
Domestic Lending Office:
50 South LaSalle Street
Chicago, IL 60675
Attention: Chris McKean, Vice President

Eurodollar Lending Office: Same as above.
</TABLE>

<PAGE>

                                      -2-

<TABLE>
<CAPTION>
                                                            COMMITMENT
                  LENDERS                     COMMITMENT    PERCENTAGE
                  -------                    ------------   ----------
<S>                                          <C>            <C>
SANPAOLO IMI S.P.A.                          $ 18,500,000      9.25%
Domestic Lending Office:
245 Park Avenue, 35th Floor
New York, NY 10167
Attention: Luca Sacchi, Vice President

Eurodollar Lending Office: Same as above.

HSBC BANK USA, N.A.                          $ 18,500,000      9.25%
Domestic Lending Office:
125 High Street
Oliver Street Tower, 16th Floor
Boston, MA 02110
Attention: Dan Lobdell, Vice President

Eurodollar Lending Office: Same as above.

THE BANK OF NEW YORK                         $ 18,500,000      9.25%
Domestic Lending Office:
One Wall Street, 8th Floor
New York, NY 10286
Attention: Johna Fidanza, Vice President

Eurodollar Lending Office: Same as above.

U.S. BANK NATIONAL ASSOCIATION               $ 18,500,000      9.25%
Domestic Lending Office:
One U.S. Bank Plaza
Mail Code: SL-MO-T12M
St. Louis, MO 63101
Attention: Gregory L. Dryden, Senior Vice
President

Eurodollar Lending Office: Same as above.
                                             ------------     -----
   TOTAL                                     $200,000,000       100%
                                             ============     =====
</TABLE>

<PAGE>

                                  SCHEDULE 1-A

                           EXISTING LETTERS OF CREDIT

1. Letter of Credit No. 1288367 with a current face amount of $350,000.00; and

2. Letter of Credit No. 50087297 with a current face amount of $900,000.00.

<PAGE>

                                                                    SCHEDULE 6.6

                                   LITIGATION

None.
<PAGE>

                                                                   SCHEDULE 6.13

                             EXISTING SUBSIDIARIES

The following are the subsidiaries of The Timberland Company as of the Closing
Date:

     The Outdoor Footwear Company
     The Recreational Footwear Company
     The Timberland World Trading GmbH
     The Timberland Finance Company
     Timberland Footwear & Clothing, Inc.
     Timberland SAS
     Timberland (U.K.) Limited
     Timberland Europe, Inc.
     Timberland Espana, S.L.
     Timberland GmbH
     Timberland Direct Sales, Inc.
     Timberland Retail, Inc.
     Timberland Manufacturing Company
     Timberland Netherlands, Inc.
     Timberland International, Inc.
     Timberland Aviation, Inc.
     Timberland Netherlands Holding B.V.
     Timberland Asia LLC
     Timberland Taiwan LLC
     Timberland Hong Kong Ltd.
     Timberland Japan Inc.
     Timberland Lifestyle Brand Malaysia Sdn Bhd
     The Timberland Company (Asia-Pacific) Pte Ltd.
     Timberland Canada Co.
     Timberland Spain LLC
     Timberland IDC Ltd.
     Timberland HK Trading Limited
     Timberland Switzerland GmbH
     Timberland (Gibraltar) Holding Limited
     Timberland Europe B.V.
     Timberland Italy S.r.l.
     Timberland Taiwan Limited
     Timberland Luxembourg Finance S.ar.l.
     Timberland Luxembourg Holding Europe S.ar.l.
     Timberland Luxembourg Holding Asia S.ar.l.
     Timberland Trading Switzerland GmbH
     Smartwool Corporation
     The Recreational Footwear Company (Dominicana), S.A.
     Component Footwear Dominicana, S.A.

<PAGE>

                                                                    SCHEDULE 8.2

                                 EXISTING LIENS

Liens on photocopiers to IOS Capital, LLC

Liens on mechanical sweeper, lift truck, batteries, charger and BHA Magnet
Extractor to Crown Credit Company

Liens on computer equipment to IBM

Liens on water purifying equipment to Norwest Financial Leasing, Inc.

Liens on copiers to Minolta Business Systems

<PAGE>

                                SCHEDULE 14.2.4

                                 ASSIGNMENT FEE

The Administrative Agent will charge an Assignment Fee in the amount of $2,500
for each assignment; provided, however, that in the event of two or more
concurrent assignments to members of the same Assignee Group (which may be
effected by a suballocation of an assigned amount among members of such Assignee
Group) or two or more concurrent assignments by members of the same Assignee
Group to a single Eligible Assignee (or to an Eligible Assignee and members of
its Assignee Group), the Assignment Fee will be $2,500 plus the amount set forth
below:

<TABLE>
<CAPTION>
                         TRANSACTION:                            ASSIGNMENT FEE:
                         ------------                            ---------------
<S>                                                              <C>
First four concurrent assignments or suballocations to members
   of an Assignee Group (or from members of an Assignee Group,
   as applicable)                                                       -0-

Each additional concurrent assignment or suballocation to a
   member of such Assignee Group (or from a member of such
   Assignee Group, as applicable)                                      $500
</TABLE>

<PAGE>

                                  SCHEDULE 15.6

                          ADMINISTRATIVE AGENT'S OFFICE

CREDIT SERVICES (BORROWING NOTICES):

PRIMARY   Petra G. Rubio
          2001 Clayton Road, 2nd Floor
          CA4-702-02-05
          Concord, CA 94520
          Phone: 925-675-8062
          Fax: 888-969-9237
          Email: petra.rubio@bankofamerica.com

AGENCY MANAGEMENT (OTHER NOTICES AS ADMINISTRATIVE AGENT):

PRIMARY   Kimberly crane
          Bank of America, N.A.
          Agency Management
          101 North Tryon Street, 15th Floor
          NC1-001-15-14
          Charlotte, NC 28255
          Phone:704-387-5451
          Fax: 704-409-0901
          Email: kimberly.crane@bankofamerica.com

<PAGE>

                                                                       EXHIBIT A

                              FORM OF LOAN REQUEST

                                  [INSERT DATE]

Bank of America, N.A., as Administrative Agent
2001 Clayton Road, 2nd Floor
CA4-702-02-05
Concord, CA 94520

Attention: Petra G. Rubio

     Re: Loan Request

Ladies and Gentlemen:

     Reference is hereby made to that certain Second Amended and Restated
Revolving Credit Agreement, dated as of June 2, 2006 (as amended, modified,
supplemented or restated and in effect from time to time, the "Credit
Agreement"), by and among THE TIMBERLAND COMPANY, a Delaware corporation (the
"Borrower"), BANK OF AMERICA, N.A. and the other lending institutions which are
or may become parties thereto from time to time (collectively, the "Lenders")
and Bank of America, N.A., as administrative agent (the "Agent"). Capitalized
terms used herein without definition and which are defined in the Credit
Agreement shall have the same meanings herein as in the Credit Agreement.

     Pursuant to Section 2.6 of the Credit Agreement, we hereby request that a
Revolving Credit Loan consisting of [a Base Rate Loan in the principal amount of
$_____________________________(1/)] [a Eurodollar Rate Loan in the principal
amount of $________________________(2/) with an Interest Period of [fourteen
(14) days] [one (1) month] [two (2) months] [three (3) months] [six (6) months]
be made on ___________________, 20__. We understand that this request is
irrevocable and binding on us and obligates us to accept the requested Revolving
Credit Loan on such date.

     We hereby certify (a) that we will use the proceeds of the requested
Revolving Credit Loan in accordance with the provisions of the Credit Agreement,
(b) that each of the representations and warranties contained in the Credit
Agreement, the other Loan Documents or

----------
(1/) Principal amount of Base Rate Loan requested must be a minimum of $500,000
     or an integral multiple of $100,000 in excess thereof.

(2/) Principal amount of Eurodollar Rate Loan requested must be a minimum of
     $1,000,000 or an integral multiple of $500,000 in excess thereof.

<PAGE>

Bank of America, N.A., as Administrative Agent

________________, ____
Page 2

in any document or instrument delivered pursuant to or in connection with the
Credit Agreement was true as of the date that it was made and is true at and as
of the date hereof (except (i) to the extent of changes either (A) resulting
from transactions contemplated or not prohibited by the Credit Agreement or the
other Loan Documents or (B) changes occurring in the ordinary course of business
that singly or in the aggregate do not constitute a Material Adverse Effect, and
(ii) to the extent that such representations and warranties relate expressly to
an earlier date) and (c) that no Default or Event of Default has occurred and is
continuing.

                                        Very truly yours,

                                        THE TIMBERLAND COMPANY

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

<PAGE>

                                                                       EXHIBIT B

                         FORM OF SWING LINE LOAN REQUEST

                                  [INSERT DATE]

Bank of America, N.A., as Administrative Agent
2001 Clayton Road, 2nd Floor
CA4-702-02-05
Concord, CA 94520

Attention: Petra G. Rubio

     Re: Swing Line Loan Request

Ladies and Gentlemen:

     Reference is hereby made to that certain Second Amended and Restated
Revolving Credit Agreement, dated as of June 2, 2006 (as amended, modified,
supplemented or restated and in effect from time to time, the "Credit
Agreement"), by and among THE TIMBERLAND COMPANY, a Delaware corporation (the
"Borrower"), BANK OF AMERICA, N.A. and the other lending institutions which are
or may become parties thereto from time to time (collectively, the "Lenders")
and Bank of America, N.A., as administrative agent (the "Agent"). Capitalized
terms used herein without definition and which are defined in the Credit
Agreement shall have the same meanings herein as in the Credit Agreement.

     Pursuant to Section 3.2 of the Credit Agreement, we hereby request that a
Swing Line Loan be made to the Borrower in the principal amount of $___________*
on ___________, 20__ with a maturity date of ___________, 20__** at an interest
rate of ________%***. We understand that this request is irrevocable and binding
on us and obligates us to accept the requested Swing Line Loan on such date.

                                        Very truly yours,

                                        THE TIMBERLAND COMPANY

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

*    Principal amount requested must be in a minimum amount of $500,000 or in
     integral multiple of $100,000 in excess thereof.

**   Swing Line Loan Maturity Date not to be later than the earliest of (i) the
     date which is ten (10) days following the requested Drawdown Date of such
     Swing Line Loan, (ii) the occurrence of a Default or Event of Default, and
     (iii) the Final Maturity Date.

***  Interest rate not to exceed Base Rate in effect on the date of quotation.

<PAGE>

                                                                       EXHIBIT C

                                    FORM OF
                             COMPLIANCE CERTIFICATE

                             ________________, 20__

Bank of America, N.A., as Administrative Agent
101 North Tryon Street, 15th Floor
NC1-001-15-14
Charlotte, NC 28255

Attention: Kimberly Crane, Agency Management

Ladies and Gentlemen:

     Reference is hereby made to that certain Second Amended and Restated
Revolving Credit Agreement, dated as of June 2, 2006 (as amended, modified,
supplemented or restated and in effect from time to time, the "Credit
Agreement"), by and among THE TIMBERLAND COMPANY, a Delaware corporation (the
"Borrower"), BANK OF AMERICA, N.A. and the other lending institutions which are
or may become parties thereto from time to time (collectively, the "Lenders")
and Bank of America, N.A., as administrative agent (the "Agent"). Capitalized
terms used herein without definition and which are defined in the Credit
Agreement shall have the same meanings herein as in the Credit Agreement.

     Pursuant to Section 7.3(c) of the Credit Agreement, the undersigned [Chief
Financial Officer/Chief Accounting Officer/Treasurer] on behalf of the Borrower
hereby certifies to you as follows: (a) the computations attached hereto set
forth in reasonable detail compliance with the covenants contained in Section 9
of the Credit Agreement as of the last day of the fiscal [year/quarter] ended
______________, 20__; (b) as of the date of this Compliance Certificate, no
Default or Event of Default has occurred and is continuing; and (c) the
financial statements delivered herewith were prepared in accordance with GAAP
and in the case of unaudited quarterly financial statements, fairly represent
the financial position of the Borrower and its Subsidiaries as of the date
hereof (subject to year end adjustments and addition of footnotes).

     IN WITNESS WHEREOF, the undersigned officer has duly executed this
Compliance Certificate as of the date first written above.

                                        THE TIMBERLAND COMPANY

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

<PAGE>

                             THE TIMBERLAND COMPANY

                        COMPLIANCE CERTIFICATE WORKSHEET

<TABLE>
<S>                                                                <C>
9.1  FIXED CHARGE COVERAGE RATIO

     (for the Reference Period ended __________, 20__)

     A.   Consolidated EBITDA:

               (i)  consolidated earnings (or losses) from the
                    operations of the Borrower and its
                    Subsidiaries, after all operating expenses
                    and other proper charges but before payment
                    or provision for any income taxes or
                    interest expenses:                             $____________

               (ii) in each case to the extent deducted in the
                    calculation of consolidated earnings (or
                    loss) from the operations of the Borrower
                    and its Subsidiaries and without
                    duplication,

                         (x)  depreciation and amortization,
                                              $___________,

                         (y)  expenses, not to exceed
                              $15,000,000 in the aggregate,
                              resulting from the issuance of
                              Capital Stock, provided that such
                              expenses are and will be non-cash
                              items:
                                              $____________, and

                         (z)  non-cash writedowns of goodwill,
                              such writedowns not to exceed
                              $30,000,000 in the aggregate:
                                              $___________
                                                                   $____________

               (iii) Sum of Items A(i) and A(ii):                  $____________

     B.   Consolidated Rental Expense for such period:             $____________

     C.   Consolidated Total Interest Expense for such period:     $____________

     D.   Item A(iii) plus Item B:                                 $____________

     E.   Item B plus Item C:                                      $____________

     F.   Ratio of Item D to Item E:                               ______:______

     G.   Minimum required ratio:                                   3.00 : 1.00

               Compliance                          ______ yes/no
</TABLE>

<PAGE>

                                       -3-

<TABLE>
<S>                                                                <C>
9.2  LEVERAGE RATIO

     (for the Reference Period ended __________, 20__)

     A.   Consolidated Total Funded Debt outstanding on the last
          day of such period:                                      $____________

     B.   Consolidated EBITDA for such period (as set forth in
          Item 9.1(A)(iii) above):                                 $____________

     C.   Leverage Ratio (ratio of Item A to Item B):              ______:______

     D.   Maximum permitted ratio:                                  2.00 : 1.00

               Compliance                          ______ yes/no
</TABLE>
<PAGE>

                                                                       EXHIBIT D

                         FORM ASSIGNMENT AND ACCEPTANCE

     This ASSIGNMENT AND ACCEPTANCE (the "Assignment and Acceptance") is dated
as of the Effective Date set forth below and is entered into by and between
[ASSIGNOR] (the "Assignor") and [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, modified, supplemented or restated and
in effect from time to time, 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 Acceptance 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
accepts 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 Lender 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 without limitation any letters of credit,
guarantees and swing line 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 Lender)
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, but not limited to, 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 Acceptance,
without representation or warranty by the Assignor.

1.   Assignor:             __________________________________________

2.   Assignee:             __________________________________________ [and is
                           an Affiliate/Approved Fund of [identify Lender]]

3.   Borrower:             The Timberland Company

4.   Administrative Agent: Bank of America, N.A., as the administrative agent
                           under the Credit Agreement

<PAGE>

5.   Credit Agreement:     Second Amended and Restated Revolving Credit
                           Agreement dated as of June 2, 2006 by and among the
                           Borrower, the Lenders parties thereto and the
                           Administrative Agent.

6.   Assigned Interest:

<TABLE>
<CAPTION>
                                                         Percentage
                Aggregate Amount of      Amount of      Assigned of
Facilities      Commitment/Loan for   Commitment/Loan   Commitment/    CUSIP
Assigned            all Lenders*         Assigned*        Loan(1)     Number
-------------   -------------------   ---------------   -----------   ------
<S>             <C>                   <C>               <C>           <C>
Revolving
   Credit
   Commitment        $_________          $_________         ___%
</TABLE>

[7.  Trade Date:           ______________________](2)

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

----------
*    Amount to be adjusted by the counterparties to take into account any
     payments or prepayments made between the Trade Date and the Effective Date.

(1)  Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans
     of all Lenders thereunder.

(2)  To be completed if the Assignor and the Assignee intend that the minimum
     assignment amount is to be determined as of the Trade Date.

<PAGE>

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

                                        [ASSIGNOR]

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        [ASSIGNEE]

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

<PAGE>

Consented to and Accepted:

BANK OF AMERICA, N.A., as
Administrative Agent

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

[Consented to:

THE TIMBERLAND COMPANY

By
   ----------------------------------
Name:
      -------------------------------
Title:                               ](3)
       ------------------------------

----------
(3)  To be added as required under Section 14 of the Credit Agreement.

<PAGE>

                                                                         ANNEX 1

                        STANDARD TERMS AND CONDITIONS FOR
                            ASSIGNMENT AND ACCEPTANCE

          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 Acceptance 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 Acceptance and to consummate the transactions
contemplated hereby and to become a Lender under the Credit Agreement, (ii) it
meets all requirements of an Eligible Assignee under the Credit Agreement
(subject to receipt of such consents as may be required under the Credit
Agreement), (iii) from and after the Effective Date, it shall be bound by the
provisions of the Credit Agreement as a Lender thereunder and, to the extent of
the Assigned Interest, shall have the obligations of a Lender thereunder, (iv)
it has received a copy of the Credit Agreement, together with copies of the most
recent financial statements delivered pursuant to Section 7.3 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 Acceptance 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 Lender, and (v) if it is a Non-U.S.
Lender, attached to the Assignment and Acceptance 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 Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Loan 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 Lender.

<PAGE>

                                        2

          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 Acceptance shall be binding
upon, and inure to the benefit of, the parties hereto and their respective
successors and assigns. This Assignment and Acceptance 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 Acceptance
by telecopy shall be effective as delivery of a manually executed counterpart of
this Assignment and Acceptance. This Assignment and Acceptance shall be governed
by, and construed in accordance with, the law of the State of New York
(excluding the laws applicable to conflicts or choice of law).

<PAGE>

                                                                       EXHIBIT E

                                  FORM OF NOTE

     FOR VALUE RECEIVED, the undersigned (the "Borrower") hereby promises to pay
to _____________ or registered assigns (the "Lender"), in accordance with the
provisions of the Agreement (as hereinafter defined), the principal amount of
each Loan from time to time made by the Lender to the Borrower under that
certain Second Amended and Restated Revolving Credit Agreement, dated as of June
2, 2006 (as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the "Agreement;" the terms defined therein being used
herein as therein defined), among the Borrower, the Lenders from time to time
party thereto, and Bank of America, N.A., as Administrative Agent, Fronting Bank
and Swing Line Lender.

     The Borrower promises to pay interest on the unpaid principal amount of
each Loan from the date of such Loan until such principal amount is paid in
full, at such interest rates and at such times as provided in the Agreement. All
payments of principal and interest shall be made to the Administrative Agent for
the account of the Lender in Dollars in immediately available funds at the
Administrative Agent's Office. If any amount is not paid in full when due
hereunder, such unpaid amount shall bear interest, to be paid upon demand, from
the due date thereof until the date of actual payment (and before as well as
after judgment) computed at the per annum rate set forth in the Agreement.

     This Note is one of the Notes referred to in the Agreement, is entitled to
the benefits thereof and may be prepaid in whole or in part subject to the terms
and conditions provided therein. Upon the occurrence and continuation of one or
more of the Events of Default specified in the Agreement, all amounts then
remaining unpaid on this Note shall become, or may be declared to be,
immediately due and payable all as provided in the Agreement. Loans made by the
Lender shall be evidenced by one or more loan accounts or records maintained by
the Lender in the ordinary course of business. The Lender may also attach
schedules to this Note and endorse thereon the date, amount and maturity of its
Loans and payments with respect thereto.

     The Borrower, for itself, its successors and assigns, hereby waives
diligence, presentment, protest and demand and notice of protest, demand,
dishonor and non-payment of this Note.

<PAGE>

     THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK.

                                        THE TIMBERLAND COMPANY

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

<PAGE>

                     LOANS AND PAYMENTS WITH RESPECT THERETO

<TABLE>
<CAPTION>
                                                  AMOUNT OF
                                                PRINCIPAL OR   OUTSTANDING
                                      END OF      INTEREST      PRINCIPAL
              TYPE OF    AMOUNT OF   INTEREST     PAID THIS      BALANCE     NOTATION
DATE         LOAN MADE   LOAN MADE    PERIOD        DATE        THIS DATE     MADE BY
----------   ---------   ---------   --------   ------------   -----------   --------
<S>          <C>         <C>         <C>        <C>            <C>           <C>

</TABLE><PAGE>

                                                                    Exhibit 10.1

          Confidential Materials omitted and filed separately with the
         Securities and Exchange Commission. Asterisks denote omissions.

                       COMMERCIAL MANUFACTURING AGREEMENT

     This COMMERCIAL MANUFACTURING AGREEMENT (this "Agreement") is made and
effective as of the 22nd day of June 2006 (the "Effective Date") by and between
IDENIX PHARMACEUTICALS, INC., with offices at 60 Hampshire Street, Cambridge, MA
02139, USA ("Idenix US"), and NOVARTIS PHARMA AG, with offices at Lichtstrasse
35, 4056 Basel, Switzerland ("Novartis").

     1. Idenix US, Idenix (Cayman) Limited ("Idenix Cayman") and Novartis
entered into a Development, License and Commercialization Agreement dated as of
May 8, 2003, as amended from time to time (the "Development Agreement"),
pursuant to which the parties thereto agreed, subject to the terms and
conditions thereof, to develop and commercialize the Selected Drug Candidates
and Products (each as defined in the Development Agreement) derived therefrom;

     2. Idenix Cayman and Novartis entered into a Master Manufacturing and
Supply Agreement dated as of May 8, 2003, as amended from time to time (the
"Supply Agreement"), setting forth the general principles governing the
Technical Development and Manufacture and supply of the Products; and

     3. Idenix US and Novartis wish to enter into this Agreement to further
specify terms and conditions applicable to the Manufacture and supply of the LdT
Finished Product by Novartis to Idenix US as it relates to supply that is
destined for sale in the United States.

     NOW, THEREFORE, for and in consideration of the mutual covenants contained
herein, Idenix US and Novartis hereby agree as follows:

     1. Definitions.

     1.1 Development Agreement Terms. All capitalized terms used, but not
defined, herein shall have the meaning ascribed to them in the Supply Agreement
or, if not ascribed therein, in the Development Agreement.

     1.2 "Components". Components shall mean raw materials necessary for
Novartis to perform its obligations under this Agreement with respect to the
Manufacture and Finishing of LdT Finished Product.

     1.3 "Fully Allocated Manufacturing Costs". Fully Allocated Manufacturing
Costs shall mean with respect to the Finishing of the LdT Finished Product all
direct and indirect costs and overhead allocable to the conduct of such activity
in accordance with GAAP or IFRS, including but not limited to project and cost
accounting consistently applied, such cost items to include, without limitation,
costs of raw materials, supplies, other resources consumed in the conduct of
such activity, rent, real estate depreciation, utilities, insurance, equipment
lease payments, equipment depreciation and labor, plus general and
administrative and similar expenses reasonably allocated to the conduct of such
Finishing activities. For avoidance of doubt, it is expressly agreed that the
API and costs and amounts detailed in Section 12.1 (a) below are specifically
excluded from the items and costs which constitute a part of the Fully Allocated
Manufacturing Costs.

<PAGE>

     1.4 "LdT Finished Product". LdT Finished Product shall mean the LdT Product
in bulk form Finished by Novartis in accordance with this Agreement which, when
Packaged, is intended to be sold by Idenix US in the U.S. Territory.

     2. Relationship to Other Agreements and Documents.

     2.1 Other Agreements. This Agreement (which includes the Quality Agreement
attached hereto) is intended to supplement the terms of the Development
Agreement and the Supply Agreement with respect to the LdT Finished Product. In
the event of any conflict or inconsistency between the provisions of this
Agreement or the Quality Agreement, on the one hand, and the provisions of the
Development Agreement or the Supply Agreement, on the other hand, the provisions
of this Agreement or as applicable, the Quality Agreement, will govern and
control with respect to the LdT Finished Product. For the sake of clarity, the
provisions of Section 4 of the Supply Agreement shall apply to the LdT Finished
Product in accordance with its terms.

     2.2 Other Documents. In the event of any conflict or inconsistency between
the terms and conditions of this Agreement and any terms or conditions set forth
in any purchase order, acknowledgment or other document relating to the
transactions contemplated by this Agreement, the terms and conditions set forth
in this Agreement shall prevail.

     3. Exclusivity.

     3.1 Supply. Novartis shall not, and shall ensure that its Affiliates (other
than Idenix US) and licensees do not, directly or indirectly, make or have made
or Finish the LdT Product for any person or entity (including themselves) for
sale in the U.S. Territory other than Idenix US. Idenix US shall not, and shall
ensure that its Affiliates and licensees (with exception to Novartis, its
Affiliates and licensees) do not, directly or indirectly, make or have made or
Finish LdT Product destined for sale in the U.S. Territory, except to the extent
permitted pursuant to this Agreement or any other relevant agreement between the
Parties and/or Affiliates of one or both Parties.

     3.2 Requirements. Except as provided herein or otherwise agreed by the
Joint Manufacturing Committee, Idenix US shall order from Novartis all of
Idenix's, its Affiliates' and licensees' (including Novartis') requirements for
LdT Finished Products.

     4. Manufacture.

     4.1 Standards. Novartis shall:

          (a) Manufacture all APIs for the LdT Finished Product,

          (b) Finish the APIs into LdT Finished Product,

          (c) warehouse the APIs and LdT Finished Products until delivery, and

          (d) deliver the LdT Finished Products to Idenix US, an Affiliate of
Idenix US or a sublicensee of Idenix US, as identified to Novartis by Idenix US,

                                        2

<PAGE>

in each case in accordance with:

          (i) the relevant Specifications,

          (ii) the terms and conditions of the Quality Agreement attached hereto
as Exhibit A (the "Quality Agreement"),

          (iii) all applicable Laws, including, without limitation, health,
safety and environmental Laws,

          (iv) the terms and conditions of this Agreement.

     4.2 Coordination. Novartis shall promptly inform Idenix US of decisions
about, or changes to, any parties or facilities used in Manufacturing or
Finishing the LdT Finished Product. Novartis shall not change any Manufacturing
or Finishing processes without Idenix US' prior written consent and otherwise as
provided in the Quality Agreement.

     4.3 Subcontracting to Affiliates. Subject to Section 4.3, Novartis may
subcontract its obligations hereunder to its Affiliates; provided that Novartis
remains liable for the performance of such obligations and all applicable
obligations of Novartis hereunder shall apply to such Affiliates.

     4.4 Transition to a Tolling Arrangement. Upon written request from Idenix
US and recommendation of the Joint Manufacturing Committee provided not less
than twelve (12) months prior to the anticipated transition date, and subject to
the approval by the Joint Steering Committee, the relationship between the
Parties with respect to Manufacture and supply of the LdT Finished Product will
convert to a toll manufacturing relationship, whereby Novartis will Manufacture,
or have Manufactured, the LdT Finished Product, but notwithstanding any
provisions to the contrary contained in this Agreement, Idenix will purchase and
supply (or have supplied) to Novartis all Components and Idenix will retain the
title to and risk of loss for the Components and the LdT Finished Product, as
applicable, throughout the Manufacturing process.

     5. Quality Assurance

     The provisions of the Quality Agreement attached hereto as Exhibit A are
incorporated by reference.

     6. Secondary Supplier.

     Idenix US and Novartis shall work collaboratively and in good faith to
determine plans to ensure continuity of supply of LdT Finished Product, which
may include, if reasonably requested by Idenix US, and subject to the
recommendation of the Joint Manufacturing Agreement and the approval by the
Joint Steering Committee, the appointment of a Third Party secondary supplier
(the "Secondary Supplier") to Manufacture and Finish the LdT Finished Product.
In case of appointment of a Secondary Supplier, Novartis shall cooperate fully
with Idenix US and the Secondary Supplier, and shall use commercially reasonable
efforts to enable Secondary Supplier to qualify and validate the Secondary
Supplier's facilities and to

                                       3

<PAGE>

Manufacture and Finish the LdT Finished Product to ensure that such Secondary
Supplier would be available as soon as practicable after appointment to
Manufacture and/or Finish the LdT Finished Product in the event that Novartis
is, at any time during the term of this Agreement, unable to supply the LdT
Finished Product in sufficient quantities to meet firm orders. Novartis shall
provide to Secondary Supplier all Technical Information and the Parties agree to
grant to the Secondary Supplier such rights and licenses to Manufacturing
Technology, Idenix Intellectual Property, Novartis Intellectual Property and
Joint Intellectual Property to the extent necessary for Secondary Supplier to
Manufacture and Finish the LdT Finished Product. Novartis agrees to the extent
commercially reasonable to cooperate with the Secondary Supplier, to permit, in
accordance with a mutually agreed timetable, the Secondary Supplier the
opportunity to observe Novartis' Manufacturing and Finishing operations as
applicable to LdT Finished Product and to make available to Secondary Supplier
in accordance with a mutually agreed timetable, such of Novartis' employees who
may demonstrate and explain to Secondary Supplier any of the Technical
Information and the Manufacturing and Finishing processes relating to the LdT
Finished Product. Costs incurred by Novartis, Idenix and/or the Secondary
Supplier in connection with the appointment, qualification/validation of the
Secondary Supplier and the transfer of all relevant information and know-how
shall be shared between the parties based on a allocation to be recommended by
the Joint Manufacturing Committee and approved by the Joint Steering Committee.

     7. Components.

     7.1 Purchase. Novartis shall purchase all Components. The Components shall
conform to any specifications therefore agreed upon by the Parties.

     7.2 Costs. Novartis shall use commercially reasonable efforts to ensure
that the Components benefit from discounts, allowances, credits or other pricing
incentives it receives from suppliers and that discounts, allowances, credits or
other pricing incentives it receives from suppliers on other raw materials do
not disproportionately increase the price that it pays for the Components.

     8. Forecasts and Ordering.

     At least [**] Business Days in advance of the commencement of each calendar
month, Idenix US shall provide Novartis with its monthly rolling forecast of the
quantities of LdT Finished Product that Idenix US estimates it will be requiring
for the coming [**] months. Idenix US shall be obligated to purchase at least
[**] percent ([**]%) of the quantity estimated for the next [**]-month period
during such upcoming [**]-month period, and Novartis shall be obligated to
supply up to [**] percent ([**]%) of such estimated quantity during the upcoming
[**]-month period.

     The first [**] months of each rolling forecast shall be considered firm
orders, thereby committing Idenix US to purchase and Novartis to sell the stated
amount of LdT Finished Products, and Idenix US shall raise the corresponding
firm orders in writing, on stock keeping units basis to Novartis at the same
time when submitting its monthly forecast. Idenix US shall purchase [**] percent
([**]%) of the LdT Finished Products specified in each firm order. Idenix US
shall specify in each firm order (a) the quantity of the LdT Finished Products
ordered, (b) the

                                       4

<PAGE>

delivery location(s) for such quantity, (c) the requested delivery date(s), and
(d) any export/import information required to enable Novartis to deliver the
order. Novartis in its sole discretion may reject any order that does not comply
with this Agreement and all other orders that comply with this Agreement will be
accepted. Orders will be deemed accepted by Novartis unless Novartis provides
notification of rejection in accordance with the immediately preceding sentence,
along with the reason for rejection, to Idenix US within five (5) Business Days
of receipt by Novartis of the firm order.

     To the extent not inconsistent with this Agreement, Idenix US shall comply
with the minimum order quantities and the order lead times as defined in the
Customer Trading Service Procedure ("TSP") in the form attached hereto as
Exhibit B and which shall be executed and delivered on the Effective Date.

     9. Capacity Allocation.

     In the event that Novartis is or expects to be unable (including without
limitation any inability as a result of a Force Majeure Event) to meet firm
orders due to a shortage of production capacity or Components, Novartis shall
promptly notify Idenix US in writing of such shortage, and, if possible, the
date such shortage is expected to end. In such event, Novartis shall allocate to
the LdT Finished Product its available production capacity or common raw
materials in such proportion (expressed as a function of equipment or raw
materials utilized) as the production equipment capacity or common raw materials
actually utilized to meet orders of Idenix US for the LdT Finished Product over
the previous [**] (or, if a full [**] month period of Manufacture of the LdT
Finished Product has not yet occurred, the actual period of time of such
Manufacture). In the event that Novartis is still unable (including without
limitation any inability as a result of a Force Majeure Event) to meet confirmed
firm orders despite the capacity allocation set forth above, the matter shall be
submitted to the Joint Manufacturing Agreement, who shall make a recommendation
to be approved by the Joint Steering Committee.

     10. Delivery.

     Novartis shall deliver all LdT Finished Products in accordance with the
quantities and requested delivery date(s) specified in the relevant firm order.
Novartis will pack the LdT Finished Products for shipment and storage in
accordance with the applicable Specifications. Novartis shall deliver the LdT
Finished Products [**] point of entry into the US (handed-over to named US
customs broker) and title shall transfer upon such delivery at the latest [**]
weeks following the written firm order confirmation by Novartis.

     11. Acceptance and Rejection.

     11.1 Acceptance. Idenix US or its designee shall notify Novartis in writing
within the timelines specified in the Quality Agreement of any apparent
non-conformity of the LdT Finished Product to the applicable Specifications (a
"Rejection") and Idenix US or its designee shall return to Novartis, at Idenix
US' expense, samples of the Rejected LdT Finished Product with a reasonably
detailed statement of the claimed defect. If Idenix US or its designee fails to
so notify Novartis, Idenix US or its designee will be deemed to have accepted
such LdT Finished Product; provided that if the non-conformity results from a
defect that is not typically observed

                                       5

<PAGE>

by routine inspection, Idenix US or its designee will have the right to reject
such LdT Finished Product if it notifies Novartis of such Rejection upon
discovery, within the timelines set forth in the Quality Agreement.

     11.2 Disputes regarding Rejection. Upon receipt of a Rejection, Novartis
shall have twenty (20) Business Days to advise Idenix US by notice in writing if
it disagrees with such Rejection (a "Rejection Disagreement"). If the Parties
fail to agree within ten (10) Business Days after Idenix US' receipt of a
Rejection Disagreement, the Parties shall mutually select an independent
laboratory to evaluate the samples returned by Idenix US. Such evaluation shall
be binding on the Parties. If such evaluation certifies that any of such samples
do not conform to the applicable Specifications, Novartis shall pay the costs
and expenses of such evaluation, all costs and expenses incurred by Idenix US in
returning the samples of the rejected LdT Finished Product and all costs
incurred in replacing the non-conforming Finished Product. If such evaluation
certifies that all such samples conform to the applicable Specifications, Idenix
US shall pay the costs and expenses of such evaluation and shall pay Novartis
for the rejected LdT Finished Product.

     11.3 Consequences of accepted or non-disputed Rejection. Idenix US will not
be required to pay Novartis for any LdT Finished Product that does not conform
to the applicable Specifications. Novartis shall, at its expense, replace any
Rejected LdT Finished Product that does not conform to the applicable
Specifications within [**].

     12. Purchase Price, Payment Terms, Cost Improvement, Other.

     12.1 Purchase Price. The purchase price for the LdT Finished Product
("Purchase Price") shall be equivalent to the sum of a) the price of API , and
b) the fee payable by Idenix to Novartis for Finishing the API into the LdT
Finished Product. The Purchase Price pursuant to this Section 12.1 is exclusive
of any applicable VAT or sales tax.

     (a) Price of API. The price of API shall be calculated per kilogram and
shall be equivalent to the total consideration for processing, Components, [**],
as described below and in the Exhibit C.

     (i) Processing. The consideration for processing is equivalent to amounts
that are dependent on the quantities ordered, as per Exhibit C. Such
consideration shall be firm until [**]. As of [**], the consideration for
processing shall [**].

     (ii) Components. The consideration for Components shall be equivalent to
the actual costs for Components. [**], the Parties agree on firm amounts, as per
Exhibit C.

     (iii) [**] The consideration for [**] is equivalent to [**], which [**]
shall be [**]. The [**] for the [**] from the [**] shall be [**] on the [**] of
the [**] the [**]. In [**] will be [**] on the [**] of the [**].

     (iv) [**] The consideration for [**] shall be [**]. Such [**] shall be [**]
in the [**] and [**] in the [**]. The [**] for the [**] shall be [**].

     (v) [**] The consideration for [**] shall be [**] shall be [**].

                                       6

<PAGE>

     (b) Fee for Finishing. The fee payable by Idenix US to Novartis for
Finishing the API into the LdT Finished Product shall be equivalent to the total
of (i) Fully Allocated Manufacturing Costs, and (ii) a mark-up of [**] percent
([**]%) of the Fully Allocated Manufacturing Costs.

     12.2 Standard Delivery Price. Prior to November 30 of each calendar year,
the Parties shall agree in writing on a price per unit of LdT Finished Product
to be used for the following calendar year (the "Standard Delivery Price"),
taking into consideration the various elements of Purchase Price as specified in
Section 12.1 above.

     Actual Purchase Price will be calculated for the respective calendar year
when all the actual elements of the Purchase Price are known. Reconciliation of
Actual Purchase Price with the Standard Delivery Price shall be made in two
steps:

     i) Provisional reconciliation. Within 60 (sixty) calendar days after the
end of the third quarter of each calendar year, Novartis will send to Idenix US
a report comparing the Actual Purchase Price with the Standard Delivery Price
invoiced to Idenix US for the first three quarters of such calendar year, such
report being based on actual data for the first three quarters of such calendar
year and the available estimates for the fourth quarter. The Parties agree that
no reconciliation payment shall be made as a result of the report sent by
Novartis to Idenix US for the first three calendar quarters of any calendar
year.

     ii) Final reconciliation. Within 30 (thirty) calendar days after the end of
each calendar year, Novartis will send to Idenix US a report comparing the
Actual Purchase Price with the Standard Delivery Price invoiced to Idenix US for
such calendar year. The Parties shall reconcile the reports within sixty (60)
days after the end of such calendar year. Any payment required by Idenix US or
Novartis to compensate the difference between the Actual Purchase Price and the
Standard Delivery Price shall be made to the appropriate Party within 30
(thirty) calendar days of reconciliation of such report. In the event of a
dispute with respect thereto, (a) the paying Party shall remit on a timely basis
all amounts not disputed and shall provide written notice within such thirty
(30) day period after reconciliation of such report, specifying in detail the
amounts in dispute and the basis for such dispute, (b) the matter shall be
referred to the Joint Steering Committee for resolution, and (c) interest shall
be payable on any additional amounts determined to be due in the same manner as
provided for in Section 6.9 of the Supply Agreement.

     To the extent that one Party must make a payment to the other Party, the
paying Party shall pay the other Party such payments within thirty (30) days
after Final reconciliation of such reports.

     12.3 Currency. The currency for pricing, invoicing and reporting will be in
United States Dollars. For the purpose of this Agreement, all currencies will be
converted into United States Dollars using the then Novartis official currency
conversion methodology applied in its external reporting (which is based on
official rates such as Reuters and the European Central Bank) for the conversion
of foreign currency into United States Dollars.

                                       7

<PAGE>

     12.4 Payment Terms. The Standard Delivery Price shall be paid within thirty
(30) days from delivery of the relevant shipment. Invoices shall be issued
together with the delivery note and the packing list. Sections 6.5, 6.6, 6.8 and
6.9 of the Supply Agreement are hereby incorporated by reference and shall apply
to the Parties with respect to this Agreement mutatis mutandis to the same
extent as in the Supply Agreement.

     12.5 Cost Improvement. The Parties shall, through the Joint Manufacturing
Committee, jointly undertake to participate and invest in a research and
development program and other efforts to lower costs of Manufacturing the API
for the LdT Finished Product by funding and/or dedicating efforts to such
program, and the Parties shall share the net benefits of such cost reductions in
proportion to their respective contributions thereto (taking into account,
without limitation, the value of any financial and non-financial contributions).

     12.6 Audit. Novartis shall keep, and shall cause its Affiliates and
licensees to keep, complete and accurate records of the data, including expense
data, relating to the pricing, invoicing, reports and payments required under
this Agreement. Idenix US will annually have the right at its own expense to
have an independent, certified public accountant, selected by it and reasonably
acceptable to Novartis, review any such records pertaining to the portion of the
Purchase Price relating to the API as determined in Section 12.1(a) in the
location(s) where such records are maintained by Novartis, its Affiliates and
licensees, upon reasonable notice and during regular business hours and under
obligations of confidence, for the sole purpose of verifying the basis and
accuracy of payments made pursuant to Section 12.2 (ii) in each case within the
prior calendar year. If the review of such records reveals that the Actual
Purchase Price was inaccurately reported, then Novartis or Idenix US, as the
case may be, shall pay to the other Party the resulting amounts due pursuant to
Section 12.2 (ii) above. Should the review of such records reveals that Idenix
US was overcharged by Novartis by more than ten percent (10%) of the amounts
actually due from Idenix US for the reviewed period, then Novartis shall pay all
of the costs of such review.

     13. Limited Warranties.

     13.1 Corporate Warranties by Novartis. Novartis hereby represents and
warrants to Idenix US as follows:

     (a) Organization, Good Standing and Qualification. Novartis is an
Aktiengesellschaft duly organized, validly existing and in compliance with the
laws of Switzerland. Novartis has all requisite corporate power and corporate
authority to own and operate its properties and assets, to carry on its business
as now conducted and as currently proposed to be conducted, to enter into this
Agreement and to carry out its obligations hereunder. Novartis is duly qualified
to transact business and is in good standing in each jurisdiction in which the
nature of its business or property makes such qualification necessary, except
where the failure to be so qualified would not reasonably be expected to
materially adversely affect the ability of Novartis to consummate the
transactions contemplated hereby.

     (b) Authorization, Execution and Delivery. All corporate action on the part
of Novartis and its officers and directors necessary for the authorization,
execution and delivery of this Agreement, and performance of the obligations of
Novartis contemplated hereby, have been

                                       8

<PAGE>

taken. This Agreement has been validly executed, delivered and authorized by
Novartis. This Agreement, assuming it constitutes valid and legally binding
obligations of Idenix US, constitutes valid and legally binding obligations of
Novartis, enforceable against Novartis in accordance with its terms, except as
the enforcement hereof may be limited by (i) applicable bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium or other similar laws relating
to or affecting the rights of creditors generally or (ii) equitable principles,
including those limiting the availability of specific performance, injunctive
relief and other equitable remedies and those providing for equitable defenses.

     (c) No Conflict. Neither the execution, delivery and performance by
Novartis of this Agreement, nor the consummation by Novartis of the transactions
contemplated hereby, nor the compliance by Novartis with any of the provisions
hereof, will:

          (i) violate or conflict with any applicable Law applicable to Novartis
     or any of its Subsidiaries, or Judgment applicable to Novartis or any of
     its Subsidiaries;

          (ii) conflict with or result in any breach of any of the terms,
     conditions or provisions of, or constitute (with due notice or lapse of
     time, or both) a default (or give rise to any right of termination,
     cancellation or acceleration) under any material Contract to which Novartis
     is a party or under which Novartis or any of its Subsidiaries is bound or
     affected; or

          (iii) conflict with or violate any provision of the Articles of
     Incorporation or by-laws of Novartis.

     (d) Consents. No Consents of, (i) or registration, qualification,
designation, declaration, notification or filing with, any Governmental Entity
or (ii) any party to any Contract to which Novartis is a party or by which it is
bound, in the case of clauses (i) and (ii) above, is required in connection with
the valid execution, delivery or performance of this Agreement by Novartis or
the consummation of the transactions contemplated hereby, except such Consents
of (x) or registrations, qualifications, designations, declarations,
notifications or filings with, any Governmental Entity or (y) any parties to any
Contract to which Novartis is a party or by which Novartis is bound, in the case
of clauses (x) and (y), the failure of which Consents to obtain, or
registrations, qualifications, designations, declarations, notifications or
filings to make, would not be reasonably likely to materially and adversely
affect the ability of the Parties to consummate the transactions contemplated
hereby.

     13.2 Corporate Warranties by Idenix US. Idenix US hereby represents and
warrants to Novartis as follows:

     (a) Organization, Good Standing and Qualification. Idenix US is a company
duly organized, validly existing and in good standing under the laws of the
United States. Idenix US has all requisite corporate power and corporate
authority to own and operate its properties and assets, to carry on its business
as now conducted and as currently proposed to be conducted, to enter into this
Agreement and to carry out its obligations hereunder. Idenix US is duly
qualified to transact business and is in good standing in each jurisdiction in
which the nature of its business or property makes such qualification necessary,
except where the failure to be so

                                       9

<PAGE>

qualified would not reasonably be expected to materially adversely affect the
ability of Idenix US to consummate the transactions contemplated hereby.

     (b) Authorization, Execution and Delivery. All corporate action on the part
of Idenix US and its officers and directors necessary for the authorization,
execution and delivery of this Agreement, and performance of the obligations of
Idenix US contemplated hereby, have been taken. This Agreement has been validly
executed, delivered and authorized by Idenix US. This Agreement, assuming it
constitutes valid and legally binding obligations of Novartis, constitutes valid
and legally binding obligations of Idenix US, enforceable against Idenix US in
accordance with its terms, except as the enforcement hereof may be limited by
(i) applicable bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium or other similar laws relating to or affecting the rights of
creditors generally or (ii) equitable principles, including those limiting the
availability of specific performance, injunctive relief and other equitable
remedies and those providing for equitable defenses.

     (c) No Conflict. Neither the execution, delivery and performance by Idenix
US of this Agreement, nor the consummation by Idenix US of the transactions
contemplated hereby, nor the compliance by Idenix US with any of the provisions
hereof, will:

     (i) violate or conflict with any Applicable Law applicable to Idenix US or
     any of its Subsidiaries, or Judgment applicable to Idenix US or any of its
     Subsidiaries;

     (ii) conflict with or result in any breach of any of the terms, conditions
     or provisions of, or constitute (with due notice or lapse of time, or both)
     a default (or give rise to any right of termination, cancellation or
     acceleration) under any material Contract to which Idenix US is a party or
     under which Idenix US or any of its Subsidiaries is bound or affected; or

     (iii) conflict with or violate any provision of the certificate of
     incorporation or bylaws of Idenix US.

     (d) Consents. No Consents of, (i) or registration, qualification,
designation, declaration, notification or filing with, any Governmental Entity
or (ii) any party to any Contract to which Idenix US is a party or by which it
is bound, in the case of clauses (i) and (ii) above, is required in connection
with the valid execution, delivery or performance of this Agreement by Idenix US
or the consummation of the transactions contemplated hereby, except such
Consents of (x) or registrations, qualifications, designations, declarations,
notifications or filings with, any Governmental Entity or (y) any parties to any
Contract to which Idenix US is a party or by which Idenix US is bound, in the
case of clauses (x) and (y), the failure of which Consents to obtain, or
registrations, qualifications, designations, declarations, notifications or
filings to make, would not be reasonably likely to materially and adversely
affect the ability of the Parties to consummate the transactions contemplated
hereby.

     13.3 Facility Warranty. Novartis hereby represents and warrants to Idenix
US that any of its or its Affiliates' facilities at which the LdT Finished
Product is Manufactured or Finished has and shall retain all necessary approvals
of the FDA and any Regulatory Authorities to Manufacture and Finish the LdT
Finished Product at such facility. Novartis further represents and warrants
that, to the best of its knowledge, it is not currently subject to any
regulatory

                                       10

<PAGE>

enforcement activity which, if determined adversely to Novartis, would prohibit
or restrict Novartis' or its Affiliates' performance of Novartis' obligations
arising pursuant to this Agreement.

     13.4 Personnel Warranty. Novartis represents that no person employed by
Novartis in connection with this Agreement has been debarred under Subsection
(a) or (b) of Section 306 of the Federal Food, Drug and Cosmetic Act (21 USC
335a) and that no person who has been debarred under Subsection (a) or (b) of
Section 306 of said Act will be employed by Novartis in connection with this
Agreement.

     13.5 Product Warranty. Novartis warrants that the LdT Finished Product: (a)
on the date of delivery thereof to Idenix US, its Affiliates or sublicensees or
to the Third Party recipient thereof, will conform to the applicable
Specifications and will not be adulterated or misbranded within the meaning of
the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.); and (b) will
be Manufactured and Finished in compliance with the Quality Agreement, and all
applicable Laws.

     13.6 DISCLAIMER. EXCEPT AS STATED IN SECTIONS 13.1 THROUGH 13.5, THE
DEVELOPMENT AGREEMENT, THE SUPPLY AGREEMENT OR ANY OTHER AGREEMENT BETWEEN THE
PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF, NEITHER PARTY MAKES ANY
REPRESENTATION OR EXTENDS ANY WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED,
TO THE OTHER PARTY WITH RESPECT TO THE LDT FINISHED PRODUCT OR OTHERWISE UNDER
THIS AGREEMENT, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.

     14. Limitations of Liability.

     14.1 EXCEPT IN CASES OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF IDENIX US
OR ITS AFFILIATES, OR WITH RESPECT TO A PAYMENT TO A THIRD PARTY BY IDENIX US AS
AN INDEMNIFYING PARTY UNDER SECTION 16, IDENIX US' LIABILITY FOR DAMAGES TO
NOVARTIS FOR ANY CAUSE WHATSOEVER ARISING UNDER THIS AGREEMENT AND THE SUPPLY
AGREEMENT COLLECTIVELY, REGARDLESS OF THE FORM OF ANY CLAIM OR ACTION, SHALL NOT
EXCEED THE TOTAL AMOUNT INVESTED BY NOVARTIS IN THE DEVELOPMENT OF THE PRODUCTS
MANUFACTURED UNDER THIS AGREEMENT AND/OR DEVELOPED UNDER THE DEVELOPMENT
AGREEMENT.

     14.2 NEITHER PARTY HERETO WILL BE LIABLE TO THE OTHER FOR INDIRECT,
INCIDENTAL, CONSEQUENTIAL, SPECIAL, EXEMPLARY OR MULTIPLE DAMAGES ARISING OUT OF
THIS AGREEMENT OR THE EXERCISE OF ITS RIGHTS HEREUNDER, OR FOR LOST PROFITS
ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY
NOTICE OF SUCH DAMAGES.

                                       11

<PAGE>

     15. Confidentiality.

     Confidential Information shall be protected in accordance with Section 9 of
the Development Agreement. All obligations of confidentiality imposed under this
Section 15 shall expire five (5) years following termination or expiration of
this Agreement.

     16. Indemnification.

          16.1 The provisions of Section 11 of the Supply Agreement are hereby
incorporated by reference and shall apply to the Parties with respect to this
Agreement mutatis mutandis to the same extent as in the Supply Agreement.

          16.2 In addition, Novartis shall defend, indemnify and hold harmless
Idenix, its Affiliates and their respective directors, officers, employees and
agents, at Novartis' cost and expense, from and against any liabilities, losses,
costs, damages, fees or expenses (including reasonable fees and expenses of
legal counsel) arising out of Novartis' storage, release, transportation or
disposal of chemicals, raw materials, product or waste arising from its
activities pursuant to this Agreement.

          16.3 In the event that the relationship between the Parties hereto
convert to a tolling arrangement pursuant to the provisions of Section 4.5
above, Idenix shall defend, indemnify and hold harmless Novartis, its Affiliates
and their respective directors, officers, employees and agents, at Idenix' cost
and expense, from and against any liabilities, losses, costs, damages, fees or
expenses (including reasonable fees and expenses of legal counsel) arising out
of Idenix' storage, release, transportation or disposal of chemicals, raw
materials, product or waste arising from its activities pursuant to this
Agreement.

     17. Term and Termination

     17.1 General. The provisions of Section 12 of the Supply Agreement (other
than Sections 12.5(a)(ii) and 12.5(a)(iii) thereof) are hereby incorporated by
reference and shall apply to the Parties with respect to this Agreement mutatis
mutandis to the same extent as in the Supply Agreement.

     17.2 Termination in connection with the Supply Agreement. This Agreement
shall terminate automatically upon, and to the same extent as, the termination
of the Supply Agreement.

     17.3 Survival. Upon termination of this Agreement:

     (a) the provisions of Section 11 of this Agreement shall survive with
respect to LdT Finished Product Manufactured or Finished before termination of
this Agreement; and Sections 12.6 and 13 , 14, 15, 16 and18 of this Agreement
shall survive provided that the duration for which the provisions set forth in
Section 12.6 shall survive, shall be limited to twenty-four (24) months after
expiration or early termination of this Agreement; and

                                       12

<PAGE>

     (b) the Development Agreement and the Supply Agreement shall remain in full
force and effect except to the extent that they have otherwise terminated or
expired in accordance with their terms.

     18. Miscellaneous.

     18.1 Choice of Law. This Agreement shall be governed by and interpreted
under the laws of the State of New York, excluding: (a) its conflicts of laws
principles; (b) the United Nations Convention on Contracts for the International
Sale of Goods; (c) the 1974 Convention on the Limitation Period in the
International Sale of Goods (the "1974 Convention"); and (d) the Protocol
amending the 1974 Convention, done at Vienna April 11, 1980.

     18.2 Notices. Any notice, request or report required or permitted to be
given or made under this Agreement by one of the Parties to the other shall be
in writing and shall be deemed to have been delivered upon personal delivery or
(a) in the case of notices provided between Parties in the continental United
States, four (4) days after deposit in the mail or the business day next
following deposit with a reputable overnight courier and (b) in the case of
notices provided by telecopy (which notice shall be followed immediately by an
additional notice pursuant to clause (a) above if the notice is of a default
hereunder), upon completion of transmissions to the addressee's telecopier, as
follows (or at such other addresses or facsimile numbers as may have been
furnished in writing by one of the Parties to the other as provided in this
Section):

          If to Idenix US: Idenix Pharmaceuticals, Inc.
                           60 Hampshire Street
                           Cambridge, MA 02139
                           U.S.A.

                           Attention: General Counsel
                           Facsimile No.: (617) 995-9801

          With a copy to:  Idenix (Cayman) Limited
                           c/o Walkers SPV Limited
                           Walker House
                           Mary Street
                           P.O. Box 908GT
                           George Town
                           Grand Cayman,
                           Cayman Islands

                           Attention: Secretary
                           Facsimile No.: (345) 949-7886

                                       13

<PAGE>

          If to Novartis:  Novartis Pharma AG
                           Lichtstrasse 35
                           CH-4002 Basel
                           Switzerland

                           Attention: Head of Global Business
                           Development and Licensing
                           Facsimile No.: Facsimile No.: [41] 61 324 2100

          With a copy to:  Novartis Pharma AG
                           Lichtstrasse 35
                           CH-4002 Basel
                           Switzerland

                           Attention: General Counsel
                           Facsimile No.: [41] 61 324 6859

     18.3 Severability. If, under applicable law or regulation, any provision
hereof is invalid or unenforceable, or otherwise directly or indirectly affects
the validity of any other material provision(s) of this Agreement ("Severed
Clause"), then, it is mutually agreed that this Agreement shall endure except
for the Severed Clause. The Parties shall consult and use their best efforts to
agree upon a valid and enforceable provision which shall be a reasonable
substitute for such Severed Clause in light of the intent of this Agreement.

     18.4 Captions. All captions herein are for convenience only and shall not
be interpreted as having any substantive meaning.

     18.5 Dispute Resolution. Any dispute arising out of or relating to this
Agreement shall be resolved in accordance with Section 13.6 of the Development
Agreement.

     18.6 Independent Contractors; No Agency. Neither Party shall have any
responsibility for the hiring, firing or compensation of the other Party's
employees or for any employee benefits. No employee or representative of a Party
shall have any authority to bind or obligate the other Party to this Agreement
for any sum or in any manner whatsoever, or to create or impose any contractual
or other liability on the other Party without said Party's written approval. For
all purposes, and notwithstanding any other provision of this Agreement to the
contrary, Idenix US' legal relationship under this Agreement to Novartis shall
be that of independent contractor.

     18.7 Assignment; Successors. Without limiting the generality of Section
4.6, either Idenix US nor Novartis may assign this Agreement in whole or in part
without the consent of the other Party; provided that (a) either Party may
assign this Agreement to an Affiliate on the condition that the assigning Party
shall remain primarily liable hereunder for the prompt and punctual payment and
performance of all obligations of the assignee, and (b) this Agreement may be
assigned by a Party to a Third Party in connection with a sale or transfer of
all or

                                       14

<PAGE>

substantially all of such Party's business to which this Agreement
relates. This Agreement shall be binding upon, and shall inure to the benefit
of, all permitted successors and assigns.

     18.8 Execution in Counterparts; Facsimile Signatures. This Agreement may be
executed in counterparts, each of which counterparts, when so executed and
delivered, shall be deemed to be an original, and all of which counterparts,
taken together, shall constitute one and the same instrument even if both
Parties have not executed the same counterpart. Signatures provided by facsimile
transmission shall be deemed to be original signatures.

     18.9 Waivers. No failure on the part of Novartis or Idenix US to exercise
and no delay in exercising any right, power, remedy or privilege under this
Agreement, or provided by statute or at law or in equity or otherwise, shall
impair, prejudice or constitute a waiver of any such right, power, remedy or
privilege or be construed as a waiver of any breach of this Agreement or as an
acquiescence therein, nor shall any single or partial exercise of any such
right, power, remedy or privilege preclude any other or further exercise thereof
or the exercise of any other right, power, remedy or privilege.

     18.10 Bankruptcy. All rights and licenses granted pursuant to this
Agreement are, for purposes of Section 365(n) of Title 11 of the United States
Code or any foreign equivalents thereof ("Title 11"), licenses of rights to
"intellectual property" as defined in Title 11. Each Party in its capacity as a
licensor hereunder agrees that, in the event of the commencement of bankruptcy
proceedings by or against such Party under Title 11, the other Party, in its
capacity as a licensee of rights under this Agreement, shall retain and may
fully exercise all of such licensed rights under this Agreement (including the
license granted hereunder) and all of its rights and elections under Title 11.

                  [Remainder of Page Intentionally Left Blank]

                                       15

<PAGE>

     IN WITNESS WHEREOF, Idenix US and Novartis have caused this Agreement to be
duly executed by their authorized representatives, in duplicate on the dates
written herein below.

                                        IDENIX PHARMACEUTICALS, INC.

                                        By: /s/ Jean-Pierre Sommadossi
                                            ------------------------------------
                                            Jean-Pierre Sommadossi
                                        Title: Chairman and Chief Executive
                                               Officer

                                        NOVARTIS PHARMA AG

                                        By: /s/ Thomas Van Lear
                                            ------------------------------------
                                        Title: Head Global Technical Operations
                                               ---------------------------------
                                        Date: 28-6-06
                                              ----------------------------------

                                        By: /s/ Sandrine Aultret
                                            ------------------------------------
                                        Title: Senior Legal Counsel
                                               ---------------------------------
                                        Date: June 28, 2006
                                              ----------------------------------

<PAGE>

EXHIBIT A - QUALITY AGREEMENT
<PAGE>

                 QUALITY AGREEMENT ON MANUFACTURING AND TESTING

                                     Between

                IDENIX PHARMACEUTICALS, INC., CAMBRIDGE, MA, USA

                  as contract giver, subsequently named IDENIX

                                       and

                     NOVARTIS PHARMA AG, BASEL, SWITZERLAND

                as contract acceptor, subsequently named NOVARTIS

                                  First edition

                                                                             1/1

<PAGE>

QUALITY AGREEMENT ON MANUFACTURING AND TESTING

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                           <C>
PREAMBLE...................................................................    4
1     SCOPE OF THE AGREEMENT...............................................    4
2     DOCUMENTS............................................................    4
2.1   DIRECTIVES...........................................................    4
2.2   MANUFACTURING- AND TESTING INSTRUCTIONS, SPECIFICATIONS..............    4
2.3   COMPUTER SYSTEM VALIDATION AND ELECTRONIC RECORDS....................    5
3     CHANGE MANAGEMENT AND APPROVAL.......................................    5
3.1   APPROVAL OF CHANGES TO THIS QUALITY AGREEMENT........................    5
3.2   APPROVAL OF CHANGES..................................................    5
4     INFORMATION FLOW.....................................................    6
4.1   INSPECTIONS..........................................................    6
4.2   COMPLAINTS...........................................................    6
4.3   RECALLS..............................................................    6
4.4   INFLUENCE ON QUALITY BY FOREIGN MATERIALS............................    6
4.5   PRODUCT QUALITY REVIEW...............................................    7
5     INSTRUMENT QUALIFICATION AND VALIDATION..............................    7
6     STARTING MATERIALS...................................................    7
6.1   SUPPLY OF DRUG SUBSTANCE.............................................    7
6.2   PROCUREMENT / DELIVERY...............................................    7
6.3   SAMPLING.............................................................    7
6.4   TESTING AND RELEASE..................................................    8
6.5   STORAGE..............................................................    8
7     MANUFACTURING OF LDT FINISHED PRODUCTS...............................    8
7.1   MANUFACTURING INSTRUCTIONS...........................................    8
7.2   BATCH MANUFACTURING RECORDS..........................................    8
7.3   REVIEW OF BATCH DOCUMENTATION........................................    9
7.4   STORAGE AND PACKAGING FOR DISPATCH...................................    9
7.5   TRANSPORT............................................................    9
7.6   SHIPMENT OF LDT FINISHED PRODUCTS UNDER QUARANTINE...................    9
8     TESTING OF LDT FINISHED PRODUCTS.....................................    9
8.1   REFERENCE STANDARDS..................................................    9
8.2   TESTING OF LDT FINISHED PRODUCTS.....................................   10
8.3   HANDLING OF DEVIATIONS...............................................   10
8.4   DEFECTIVE LDT FINISHED PRODUCTS......................................   10
</TABLE>

                                                                             2/2

<PAGE>

QUALITY AGREEMENT ON MANUFACTURING AND TESTING

<TABLE>
<S>                                                                           <C>
9     RETENTION OF SAMPLES AND DOCUMENTATION...............................   11
10    WASTE MATERIAL.......................................................   11
11    TERM AND EXPIRATION OF THE QA AGREEMENT..............................   11
12    DEFINITIONS..........................................................   11
13    LIST OF ENCLOSURES...................................................   12
14    SIGNATURES...........................................................   12
</TABLE>

                               TABLE OF ENCLOSURES

ENCLOSURE A: LIST OF QA/QC LIAISONS
ENCLOSURE B: TABLE OF RESPONSIBILITIES
ENCLOSURE C: LIST OF LDT FINISHED PRODUCTS
ENCLOSURE D: DIRECTIVES, MANUFACTURING AND TESTING DOCUMENTS
ENCLOSURE E: PROCESS-FLOW ON RESPONSIBILITIES

                                                                             3/3
<PAGE>

QUALITY AGREEMENT ON MANUFACTURING AND TESTING

PREAMBLE

IDENIX, Idenix (Cayman) Limited and NOVARTIS have entered into a development,
license and commercialization agreement dated as of May 8, 2003, as amended from
time to time (the "Development Agreement"). The Parties also entered into:

     -    a Master Manufacturing and Supply Agreement dated as of May 8, 2003,
          as amended from time to time (the "Master Supply Agreement")

     -    into a commercial manufacturing agreement dated ____ (the "Commercial
          Manufacturing Agreement") whereby NOVARTIS shall make or have made LdT
          Finished Product (as defined in the Commercial Manufacturing
          Agreement).

IDENIX has submitted to the FDA and EMEA the new drug applications for a
marketing authorizations for the pharmaceutical product based on LdT Finished
Product.

IDENIX and NOVARTIS are defining their roles and responsibilities according to
the intentions of the EU/PIC GMP Guidelines. In addition to the requirements
below, NOVARTIS will assure that the US Code of Federal Regulations and the
corresponding national guidelines cGMP prevailing at the time of the manufacture
and finishing of the LdT Finished Products are followed.

1    SCOPE OF THE AGREEMENT

This Quality Agreement defines contacts for all technical and quality matters
(see Enclosure A: List of QA/QC Liaisons), assigns the roles and
responsibilities of both parties (see Enclosure B: Table of Responsibilities).
This Quality Agreement establishes the reliance of IDENIX on the decisions made
by NOVARTIS for the LdT Finished Products (see Enclosure C: List of Products).
It defines the manufacturing and testing documents and applicable directives
(see Enclosure D).

2    DOCUMENTS

2.1  DIRECTIVES

If not otherwise defined in this agreement the provisions of NOVARTIS' quality
management system and standard operation procedures shall be applied to
NOVARTIS' operations.

2.2  MANUFACTURING- AND TESTING INSTRUCTIONS, SPECIFICATIONS

The manufacturing and testing monographs (comprising Specifications as well as
methods) are binding and have to be applied in detail. If IDENIX' Specifications
are incorporated into NOVARTIS'

                                                                             4/4

<PAGE>

QUALITY AGREEMENT ON MANUFACTURING AND TESTING

documentation, NOVARTIS will assure that these conversions are accurate and
updated as appropriate. In addition, where possible, there should be a
cross-reference in the master document to the appropriate IDENIX
Specification(s).

2.3  COMPUTER SYSTEM VALIDATION AND ELECTRONIC RECORDS

NOVARTIS is responsible that computer systems used for the operations in
production and testing and release for further processing are validated.
Approved validation protocols, reports, testing protocols & raw data and system
operation procedures shall be available for inspection by IDENIX.

3    CHANGE MANAGEMENT AND APPROVAL

A change to be considered include changes to this Quality Agreement and changes
relevant to the registration of LdT Finished Products, such as to the
manufacturing location and procedures, to the equipment and materials used.
Additionally, changes that could interfere with the quality of the LdT Finished
Products, such as to the testing procedures, instructions and Specifications.

3.1  APPROVAL OF CHANGES TO THIS QUALITY AGREEMENT

Amendments and addenda to this Quality Agreement and its enclosures must be in
writing.

3.2  APPROVAL OF CHANGES

IDENIX or NOVARTIS shall prepare a change request in writing. In this document,
the following items shall be defined at least:

     -    a comparative description of the change (current versus intended
          status)

     -    the rational for the change

     -    a cGMP assessment

     -    a business (cost/benefit) evaluation

For each change an approval from IDENIX is necessary before implementation.
Changes in Specifications of material resulting from the update of compendia and
pharmacopoeia may be made by NOVARTIS without formal request and are notified to
IDENIX through the key-accounts (see Enclosure A) in a timely manor.

Registration relevant changes shall only be implemented after obtaining approval
from the national health authorities. NOVARTIS shall be informed by IDENIX well
in advance.

                                                                             5/5

<PAGE>

QUALITY AGREEMENT ON MANUFACTURING AND TESTING

4    INFORMATION FLOW

4.1  INSPECTIONS

NOVARTIS agrees that its facilities, operations and quality systems are
inspected by IDENIX initially and at reasonable intervals, thereafter in order
to ensure coincidence with the registration of the products and compliance with
GMP guidelines and applicable IDENIX guidelines. NOVARTIS will correct audit
observations in a timely manner where agreement is reached on such observations.

NOVARTIS shall allow foreign and local governmental authorities to inspect
facilities, operations and quality systems, as it is necessary to facilitate,
obtain or maintain the registration in the countries where IDENIX or its
affiliates, licensees or distributors, as the case may be, desire to sell the
products.

NOVARTIS will immediately inform IDENIX about major regulatory authorities'
inspections (e.g. EMEA or equivalent) and critical or major issues (e.g. FDA 483
or equivalent forms) and shall be informed on the progress of follow-up
activities resulting from such authority inspections.

4.2  COMPLAINTS

IDENIX is responsible for handling complaints from the market and shall reply to
inquiries as promptly as possible. IDENIX shall provide the necessary
information within two (2) business days to NOVARTIS and render assistance to
NOVARTIS as required. NOVARTIS shall without delay investigate technical
complaints and report results to IDENIX within twenty (20) business days at the
latest. If the test period is unable to be met, NOVARTIS will notify IDENIX to
arrange an agreed upon timeframe. In case of critical complaints (potential
recalls, field alerts etc.) both parties shall mutually agree upon the timeframe
to be met for investigations.

4.3  RECALLS

In a potential recall situation, to the extent commercially reasonable, both
parties will consult each other and agree on joint action prior to initiation of
the recall. NOVARTIS shall co-operate in relation to the recall and in any
investigation conducted by or on behalf of IDENIX with respect to such recall to
the extent that it relates to the manufacture or finishing of the LdT Finished
Product. IDENIX is responsible for liaison with health authorities and conducts
the recall according to IDENIX' internal procedures.

4.4  INFLUENCE ON QUALITY BY FOREIGN MATERIALS

IDENIX must be informed in advance and upon request, in each case in writing, of
each critical compound which will be manufactured and/or used in the same
facility as any LdT Finished Product. For purposes of this article, the term
critical shall mean any product or process which may reasonably present a
potential hazard to any product, such as, by way of example, BETA-lactams,
antibiotics, hormones,

                                                                             6/6

<PAGE>

QUALITY AGREEMENT ON MANUFACTURING AND TESTING

cytostatics or biological preparations from live micro-organisms.

NOVARTIS agrees to advise IDENIX by means of a BSE/TSE certificate of compliance
mentioning the origin of all bovine, caprine and ovine derived starting
materials, if any, purchased by NOVARTIS for the processing of the LdT Finished
Products.

If a CoA on starting material is provided to IDENIX it shall clearly state the
origin of the material.

4.5  PRODUCT QUALITY REVIEW

NOVARTIS will provide data for a Product Quality Review (PQR). IDENIX and
NOVARTIS will mutually agree on a format and reporting responsibility, template
and schedule of the PQR as laid down in Enclosure D.

5    INSTRUMENT QUALIFICATION AND VALIDATION

NOVARTIS agrees that manufacturing, in-process and quality control, and cleaning
procedures must be validated and carried out under cGMP rules. Furthermore, the
manufacturing instructions shall be followed using calibrated and qualified
equipment, computer systems and machines.

6    STARTING MATERIALS

6.1  SUPPLY OF DRUG SUBSTANCE

Drug substance (API) is manufactured by NOVARTIS International Branch Ireland,
Ringaskiddy on behalf of NOVARTIS. NOVARTIS is responsible that drug substance
is compliant with the specifications. With respect to quality matters NOVARTIS
is fully responsible for the manufacturer of the drug substances and its
compliance with GMP and NOVARTIS' global standards.

6.2  PROCUREMENT / DELIVERY

Starting materials shall be procured by NOVARTIS from suppliers which have been
approved, qualified or certified by NOVARTIS' quality assurance according to the
NOVARTIS' standard operating procedure. Upon receipt all non-active starting
materials have to be tested for compliance with the specifications. (See also
chapter 6.3 and 6.4 below).

6.3  SAMPLING

NOVARTIS must take samples of the starting materials according to written
sampling plans. Retained samples of starting materials must be kept according to
Article 9.

                                                                             7/7

<PAGE>

QUALITY AGREEMENT ON MANUFACTURING AND TESTING

6.4  TESTING AND RELEASE

Every batch of starting materials used at NOVARTIS must be released for
production of LdT Finished Products and be in compliance with the
specifications. Starting materials procured by NOVARTIS must be tested for
compliance with the said Specifications and released for production by NOVARTIS.

6.5  STORAGE

Storage containers and storage/transport conditions must ensure that the
specified quality of starting materials is not impaired. NOVARTIS will store
starting materials under standard storage conditions which are considered by
NOVARTIS to be suitable and appropriate for the above purpose.

7    MANUFACTURING OF LDT FINISHED PRODUCTS

7.1  MANUFACTURING INSTRUCTIONS

NOVARTIS agrees that manufacture of the LdT Finished Products is carried out
according to the manufacturing instructions. NOVARTIS or its associate will
submit the Master Batch Record to IDENIX for approval before the first start of
production or before an approved change is implemented, if requested by IDENIX.
Supporting documentation will be provided stating all changes made to the master
batch record.

Further documentation, e.g. excerpts of manufacturing records, will be submitted
for perusal by IDENIX upon reasonable request. Shipment shall be made as
promptly as possible.

7.2  BATCH MANUFACTURING RECORDS

NOVARTIS agrees that clear structured batch documentation for each batch of the
LdT Finished Products is compiled and retained. The manufacturing batch record
as well as testing documentation kept shall comply with the cGMP guidelines.

                                                                             8/8

<PAGE>

QUALITY AGREEMENT ON MANUFACTURING AND TESTING

NOVARTIS assures that upon special requests from health authorities the
following documents will be provided as copies within two (2) Business Days to
IDENIX:

     -    Complete manufacturing batch record of LdT Finished Products

     -    Certificate(S) Of Analysis of drug substances and of excipients,

     -    Test methods used.

7.3  REVIEW OF BATCH DOCUMENTATION

After detailed review of the batch documentation of each batch NOVARTIS
associate is responsible that a statement of compliance with cGMP (CoC,
confirmation statement) is included in the certificate of analysis (CoA) that is
signed by a qualified person. A suitable format of this statement or document
will be mutually agreed.

IDENIX will review the complete manufacturing batch record of LdT Finished
Products of the validation campaign and the first commercial batch produced for
IDENIX. In case of critical deviations IDENIX may request a full copy of batch
record in order accept the conclusions drawn by NOVARTIS.

7.4  STORAGE AND PACKAGING FOR DISPATCH

NOVARTIS is responsible that the requirements as referenced in Enclosure D
regarding the storage, labeling and packaging for dispatch of LdT Finished
Products are met.

7.5  TRANSPORT

Both parties agree that NOVARTIS is responsible for shipment of LdT Finished
Products to the handover-point (customs un-cleared at airport or harbor -and
possible interim ware housing.)

7.6  SHIPMENT OF LDT FINISHED PRODUCTS UNDER QUARANTINE

Shipment of LdT Finished Products under quarantine by NOVARTIS requires written
confirmation by IDENIX.

8    TESTING OF LDT FINISHED PRODUCTS

8.1  REFERENCE STANDARDS

NOVARTIS will use its own reference standard.

                                                                             9/9

<PAGE>

QUALITY AGREEMENT ON MANUFACTURING AND TESTING

8.2  TESTING OF LDT FINISHED PRODUCTS

NOVARTIS will carry out appropriate testing according to the test documents as
listed in Enclosure D.

NOVARTIS will release each batch for shipment.

A Certificate of Analysis (CoA) which includes:

     -    lot number of drug substance (API) used

     -    the batch specific information

     -    the test results and Specifications

     -    name and address of all manufacturers involved in the manufacture of
          LdT Finished Products

     -    the number of manufacturing authorization/license and/or GMP
          compliance certificate

     -    certification statement (statement of compliance)

     -    a report on deviation investigations if any

must be provided to IDENIX within [**] business days at the latest. The batch
certificate must clearly indicate the document code of testing instruction used.
The CoA shall be sent to the key-account of IDENIX electronically.

8.3  HANDLING OF DEVIATIONS

Major Deviation/failure investigations must be handled according to the
corresponding standard operation procedure and will be reported to IDENIX.
IDENIX may consult on corrective/preventative actions (CAPA). Minor Deviations
may be reported to IDENIX in the Product Quality Review.

8.4  DEFECTIVE LDT FINISHED PRODUCTS

IDENIX has the right to reject a batch, which does not meet the specifications
or is not manufactured according to the agreed procedures and cGMP requirements.
IDENIX will inform NOVARTIS in writing of any defects not later than [**]
business days after receipt of the LdT Finished Products. However, concealed
defects, which are typically not discovered by routine quality control measures,
may be reported within [**] business days after their discovery.

                                                                           10/10

<PAGE>

QUALITY AGREEMENT ON MANUFACTURING AND TESTING

9.   RETENTION OF SAMPLES AND DOCUMENTATION

NOVARTIS ensures that samples and documentation related to the manufacture are
retained as follows:

<TABLE>
<S>                                                      <C>
drug substance, excipients, printed packaging material   [**] after initial release
unprinted packaging material                             [**] after initial release
drug products                                            [**] after initial release
</TABLE>

IDENIX will request the documentation with appropriate notice from NOVARTIS to
meet longer archiving periods. NOVARTIS will then transfer the documentation to
IDENIX.

The sample amount to be stored shall at least be sufficient to perform [**] full
tests according to the testing instruction with exception of microbiology.
NOVARTIS ensures that - on special request from IDENIX, e.g. in response to a
health authority request - retention samples are provided for dispatch within
two (2) Business Days by certified letter. IDENIX will confirm the receipt.

10   WASTE MATERIAL

NOVARTIS should destroy waste material in a secure, documented and legal manner,
preventing environmental problems and unauthorized use.

11   TERM AND EXPIRATION OF THE QA AGREEMENT

This agreement forms an integral part of the Commercial Manufacturing Agreement
and shall come into force and effect once signed by the parties hereto. This
Quality Agreement shall prevail regarding all quality matters, however not to
the extent of any liabilities defined in the Commercial Manufacturing Agreement.
The termination of this agreement shall be in accordance with the Commercial
Manufacturing Agreement.

12   DEFINITIONS

See Commercial Manufacturing Agreement

                                                                           11/11

<PAGE>

QUALITY AGREEMENT ON MANUFACTURING AND TESTING

13   LIST OF ENCLOSURES

<TABLE>
<S>            <C>
ENCLOSURE A:   List of QA/QC Liaisons
ENCLOSURE B:   Table of Responsibilities
ENCLOSURE C:   List of LdT Finished Products
ENCLOSURE D:   Directives, Manufacturing and Testing Documents
ENCLOSURE E:   Process-Flow on Responsibilities
</TABLE>

14   SIGNATURES

IDENIX PHARMACEUTICALS, INC.            NOVARTIS PHARMA AG

/s/ David Hallinan                      /s/ Dr.K.Finneiser
-------------------------------------   ----------------------------------------
David Hallinan                          Dr.K.Finneiser
Vice President Reg.Affairs              PHQA/Contracts & Complaint Management

/s/ Leigh Boutilier                     /s/ Dr.K.Hornung
-------------------------------------   ----------------------------------------
Leigh Boutilier                         Dr.K.Hornung
Quality Assurance Specialist            Head PHQA

                                                                           12/12
<PAGE>

QUALITY AGREEMENT ON MANUFACTURING AND TESTING

                       ENCLOSURE A: LIST OF QA/QC LIAISONS

                                     IDENIX

<TABLE>
<S>               <C>                            <C>
NAME              FUNCTION                       ADDRESS
Leigh Boutilier   Quality Assurance Specialist   60 Hampshire Street
                                                 Cambridge MA 02139
                                                 USA

TELEPHONE         FAX                            E-MAIL
+1 617-995-9916   +1 617-995-9801                boutilier.leigh@idenix.com
</TABLE>

                                    NOVARTIS

<TABLE>
<S>                       <C>                              <C>
NAME                      FUNCTION                         ADDRESS
Klaus Finneiser           Contracts&Complaint Management   Novartis Pharma AG
                          (general contact head quarter)   Forum 3-1.100
                                                           CH-4002 Basel
                                                           SWITZERLAND

TELEPHONE                 FAX                              E-MAIL
+41 61 3249101 (direct)   +41 61 3248237  (direct)         heinz.bruegger@novartis.com
</TABLE>

<TABLE>
<S>                       <C>                              <C>
NAME                      FUNCTION                         ADDRESS
Heinz Bruegger            QA/QC TEAM PU SOLIDA 2           Novartis Pharma Stein AG
                                                           Postfach
                                                           CH-4332 Stein
                                                           SWITZERLAND

TELEPHONE                 FAX                              E-MAIL
+41 62 8686488 (direct)   +41 62 8686502 (direct)          heinz.bruegger@novartis.com
</TABLE>

                                                                             1/1

<PAGE>

QUALITY AGREEMENT ON MANUFACTURING AND TESTING

IDENIX PHARMACEUTICALS, INC.            NOVARTIS

/s/ Leigh Boutilier                     /s/ Dr. K. Finneiser
-------------------------------------   ----------------------------------------
Leigh Boutilier                         Dr. K. Finneiser
Quality Assurance Specialist            PHQA/Contracts & Complaint Management

                                                                             2/2
<PAGE>

QUALITY AGREEMENT ON MANUFACTURING AND TESTING

                     ENCLOSURE B: TABLE OF RESPONSIBILITIES

I = IDENIX
N = NOVARTIS

<TABLE>
<S>                                                                <C>  <C>
GENERAL
Compliance with the applicable code/s of GMP and quality systems   I    N
Confidentiality agreement                                          I    N
Inspection, audit, and approval of facilities and quality          I
systems and evaluation of NOVARTIS licensing compliance

DOCUMENTATION
Approval of master formulae, manufacturing instructions, and       I    N
product specifications of drug substance (API) and LdT
Finished Products
Preparation of master formulae, manufacturing instructions,             N
and product specifications
Preparation and approval of specifications and test methods for         N
active starting materials
Review of specifications and test methods for active starting      I
materials
Specifications and test methods for inactive starting materials         N
Specifications for other packaging components                           N
(used for transport)
Supply of safety and disposal data regarding materials and              N
processes
Validation of computer systems                                          N

MANUFACTURING
Inspect and test in-process materials and bulk LdT                      N
Finished Products
Process validation and cleaning validation                              N
Provide testing and manufacturing records as requested                  N
Purchase, sample, inspect, test (at least identity), and store          N
starting materials and retain samples
Shipping containers provided by                                         N
Shipping of finished product to agreed hand-over point                  N
</TABLE>

                                                                             1/1

<PAGE>

QUALITY AGREEMENT ON MANUFACTURING AND TESTING

<TABLE>
<S>                                                                <C>  <C>
QUALITY ASSURANCE
Approval of change requests (relevant to registration)             I
Approval to deviate from approved method of manufacture            I
Approval to deviate from approved specifications                   I
Assign expiry periods and storage conditions                       I
Conduct recall                                                     I
Contribute to Product Quality Review (PQR)                              N
Final assessment of complaints                                     I
Final release according GMP guidelines                             I
Interfunctional evaluation of changes                              I    N
Investigation to support recall decisions                          I    N
Investigate technical customer complaints                          I    N
Issue of Product Quality Review                                    I
Maintain customer complaint files                                  I
Preparation of change requests                                          N
Prepare and provide certificates of analysis, certificates              N
of manufacture
Prevention of using material critical to the quality of LdT             N
Finished Products
Provide batch number (as applicable)                                    N
Provide reports regarding deviations or non-conformances                N
during manufacture
QA approval of process validation protocols and reports - API           N
QA approval of process validation protocols and reports - DP       I    N
QA approval of starting materials and in-process materials              N
Recall of product                                                  I
Reference samples of Bulk Product                                       N
Release of product for shipment                                         N
Reply to complaints                                                I
Report to technical customer complaints                            I
Retain records of bulk product testing                                  N
Retain records of manufacturing                                         N
Retain records of starting material and in process testing              N
Retain samples of bulk product                                          N
Retain samples of starting materials                                    N
</TABLE>

                                                                             2/2

<PAGE>

QUALITY AGREEMENT ON MANUFACTURING AND TESTING

<TABLE>
<S>                                                                <C>  <C>
QUALITY ASSURANCE
Review all batch records and analytical results for compliance          N
of API
Review all batch records and analytical results for compliance          N
of LdT Finished Products
Review selected batch records and analytical results for           I
compliance of LdT Finished Products
</TABLE>

IDENIX PHARMACEUTICALS, INC.            NOVARTIS

/s/ Leigh Boutilier                     /s/ Dr. K. Finneiser
-------------------------------------   ----------------------------------------
Leigh Boutilier                         Dr. K. Finneiser
Quality Assurance Specialist            PHQA/Contracts & Complaint Management

                                                                             3/3
<PAGE>

QUALITY AGREEMENT ON MANUFACTURING AND TESTING

                   ENCLOSURE C: LIST OF LDT FINISHED PRODUCTS

<TABLE>
<CAPTION>
BASIS NO   MATERIAL NO.   MATERIAL DESCRIPTION   ACCEPTOR'S NO.
--------   ------------   --------------------   --------------
<S>        <C>            <C>                    <C>
6001474       852558      LDT600 FCT 600MG.006   to bedefined
</TABLE>

IDENIX PHARMACEUTICALS, INC.            NOVARTIS

/s/ Leigh Boutilier                     /s/ Dr. K. Finneiser
-------------------------------------   ----------------------------------------
Leigh Boutilier                         Dr. K. Finneiser
Quality Assurance Specialist            PHQA/Contracts & Complaint Management

                                                                             1/1
<PAGE>

QUALITY AGREEMENT ON MANUFACTURING AND TESTING

          ENCLOSURE D: DIRECTIVES, MANUFACTURING AND TESTING DOCUMENTS

LDT FINISHED PRODUCTS

<TABLE>
<CAPTION>
NO.   REFERENCE
---   ---------
<S>   <C>
1     Reference is made to the validation report PHAD000140A, 5/27/2005
2     T   DP_6001474_A_R_1
</TABLE>

D = Directive or SOP, M = Manufacturing Instruction, P = Packaging Instruction,
T = Testing Monograph, O = other

PRODUCT QUALITY REVIEWS

<TABLE>
<CAPTION>
         NAME/PRODUCT
NO.   IDENTIFICATION NO.   DEADLINE FOR SUBMISSION OF DATA
---   ------------------   -------------------------------
<S>   <C>                  <C>
1                          2007 and annually thereafter in
                           the same quarter as start of
                           commercial production
</TABLE>

IDENIX PHARMACEUTICALS, INC.            NOVARTIS

/s/ Leigh Boutilier                     /s/ Dr. K. Finneiser
-------------------------------------   ----------------------------------------
Leigh Boutilier                         Dr. K. Finneiser
Quality Assurance Specialist            PHQA/Contracts & Complaint Management

                                                                             1/1

<PAGE>

QUALITY AGREEMENT ON MANUFACTURING AND TESTING

                  ENCLOSURE E: PROCESS-FLOW ON RESPONSIBILITIES

A = NOVARTIS International Branch Ireland, Ringaskiddy on behalf of B

B = NOVARTIS or contract manufacturer on behalf of NOVARTIS

C = NOVARTIS or manufacturing sites on behalf NOVARTIS
    or 3rd party on behalf of NOVARTIS

<TABLE>
<CAPTION>
                                  WHO
                            ---------------
WHAT                         A     B     C
----                        ---   ---   ---
<S>                         <C>   <C>   <C>
Drug Substance (API)         X
Release of Drug Substance          X
Transport                          X
Bulk Drug Product                        X
</TABLE>

IDENIX PHARMACEUTICALS, INC.            NOVARTIS

/s/ Leigh Boutilier                     /s/ Dr. K. Finneiser
-------------------------------------   ----------------------------------------
Leigh Boutilier                         Dr. K. Finneiser
Quality Assurance Specialist            PHQA/Contracts & Complaint Management

                                                                             1/1
<PAGE>

                      EXHIBIT B - TRADING SERVICE PROCEDURE
<PAGE>

                                      DRAFT

                            TRADING SERVICE PROCEDURE

                                     Between

NOVARTIS PHARMA AG                      IDENIX PHARMACEUTICALS, INC

Herein after referred to as NOVARTIS    Herein after referred to as IDENIX

Signed:                                 Signed:
        -----------------------------           --------------------------------
Date:                                   Date:
      -------------------------------         ----------------------------------
Name:                                   Name:
      -------------------------------         ----------------------------------
Position:                               Position:
          ---------------------------             ------------------------------

Signed:                                 Signed:
        -----------------------------           --------------------------------
Date:                                   Date:
      -------------------------------         ----------------------------------
Name:                                   Name:
      -------------------------------         ----------------------------------
Position:                               Position:
          ---------------------------             ------------------------------

Signed:                                 Signed:
        -----------------------------           --------------------------------
Date:                                   Date:
      -------------------------------         ----------------------------------
Name:                                   Name:
      -------------------------------         ----------------------------------
Position:                               Position:
          ---------------------------             ------------------------------

This procedure is valid, from June 22, 2006 until June 21, 2007

This procedure shall be reviewed annually.

<PAGE>

                                                       TRADING SERVICE PROCEDURE

THIS TRADING SERVICE PROCEDURE (HEREIN AFTER REFERRED TO AS THE TSP) IS DIVIDED
INTO TWO PARTS.

SCOPE OF THE TSP

Part 1 defines the relevant processes and parameters and is fixed for all
products covered by this TSP. Any amendment shall be by written agreement of
both Parties.

Part 2 contains specific information that is unique to each SKU. Proposed
changes will be reviewed and signed by the Supply Manager from each party, and
all amendments must be clearly documented and issued to all parties.

This TSP is an attachment of the Commercial Manufacturing Agreement between
Idenix and Novartis dated as of June 22, 2006 (the "Supply Agreement").

The activities and processes within this TSP shall be monitored in the context
of the Supply Agreement.

TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                    PAGE
                                                    ----
<S>                                                 <C>
    PART 1
1   Responsibilities                                  3
  A Responsibilities of Novartis                      3
  B Joint Responsibilities of Novartis and Idenix     3
  C Responsibilities of Idenix                        4
3   Planning and Ordering Parameters                  5
4   Definition of Terms / Glossary                    6

    PART 2
1   Communication                                     7
2   Delivery Specifications                           9
3   SKU Specifications                               12
</TABLE>

Page -2- of 12

<PAGE>

                                                       TRADING SERVICE PROCEDURE

                               PART 1 - PROCESSES

1.   RESPONSIBILITIES

A.   RESPONSIBILITIES OF NOVARTIS

     1.   COMMUNICATION

          Novartis undertakes to promptly communicate all relevant demand and
          supply information and/or contingencies to Idenix.

     2.   DELIVERY POINT

          Novartis shall deliver to the relevant delivery location(s) all LdT
          Finished Products in accordance with the quantities and requested
          delivery date(s) specified in the relevant firm order. All deliveries
          of LdT Finished Products shall be [**]. (Ref: 1.4 Commercial
          Manufacturing agreement " Finish" or "Finishing" process of combining
          the relevant API(s) and necessary excipients into Finished Ldt
          Products (Tablets 600 mg)).

          ARRANGE DELIVERY

          Novartis will arrange the delivery to US borders.

B.   JOINT RESPONSIBILITIES OF NOVARTIS AND IDENIX

     1.   PROCESS REVIEW MEETINGS

          The frequency of these meetings (or video / teleconferences) shall be
          twice a year. The standard agenda shall be as follows:

               1.1. Minutes and Actions
               1.2. Forecast changes / Demand and Supply Review
               1.3. Performance Measurement
               1.4. Review Processes
               1.5. Further points

     2.   TSP MAINTENANCE

          It is the responsibility of the Novartis Supply Manager and Idenix
          Supply Manager to review the TSP at least once a year and more often
          if appropriate. Any suggestions for amendment to the TSP must be
          agreed in writing by both Parties prior to implementation. Changes
          have to be aligned with the Joint Supply Team and submitted to each
          party's legal counsel in order to ensure consistency with the Supply
          Agreement.

Page -3- of 12

<PAGE>

                                                       TRADING SERVICE PROCEDURE

C.   RESPONSIBILITIES OF IDENIX

     1.   COMMUNICATION

          Idenix undertakes to promptly communicate all relevant demand and
          supply information and/or contingencies to Novartis.

Page -4- of 12

<PAGE>

                                                       TRADING SERVICE PROCEDURE

2.   PLANNING & ORDERING PARAMETERS

     1.   FORECASTS

          1.1. Idenix shall provide Novartis with a written non-binding rolling
               forecast each month for the volume of the LdT Finished Product.
               The non-binding rolling forecast shall be provided for a total
               horizon of [**] months. Idenix will provide orders and forecasts
               with reference to the Novartis product code. Idenix shall be
               obligated to purchase at least [**] percent ([**]%) of the
               quantity estimated for the upcoming [**] month period, and
               Novartis shall be obligated to supply up to [**] percent ([**]%)
               of such estimated quantity during the upcoming [**] month period.
               The rolling forecast will be updated and supplied by Excel /
               e-mail from Idenix to Novartis at least [**] Business Days in
               advance from the commencement of each calendar month. If the
               transmission does not occur by this date and time, Novartis will
               not remove the first forecast period and will continue to plan
               production during this period for Idenix.

          1.2. Both parties understand that short-term demand can fluctuate
               significantly during the launch phase. Idenix will undertake to
               provide the best demand figures possible during the launch phase
               and Novartis will undertake reasonable efforts to meet changing
               demand.

          1.3. Novartis will request annually, a non binding [**] year forecast
               (yearly buckets).

     2.   FIRM ORDERS

          2.1. The first [**] months of each rolling forecast (a) shall be
               considered firm orders, thereby committing Idenix to purchase and
               Novartis to sell the stated amount of LdT Finished Products, and
               Idenix shall raise the corresponding firm orders in writing, on
               stock keeping units basis to Novartis at the same time when
               submitting its monthly forecast. Idenix shall purchase [**]
               percent ([**]%) of the LdT Finished Products specified in each
               firm order. Idenix shall specify in each firm order (a) the
               quantity of LdT Finished Products ordered, (b) the delivery
               location(s) for such quantity, (c) the requested delivery
               date(s), and (d) any export/import information required to enable
               Novartis to deliver the order. Novartis in its sole discretion
               may reject any order that does not comply with this Agreement and
               all other orders that comply with this Agreement will be
               accepted.

     3.   ORDER CHANGES

          3.1. If Idenix cancels or reduces a Firm Order for Ldt Finished
               Product and that order has already been processed, Novartis will
               organize the shipment of the goods to Idenix and invoice against
               the shipped stock.

Page -5- of 12

<PAGE>

                                                       TRADING SERVICE PROCEDURE

     4.   DELIVERY TIME / ORDER CONFIRMATIONS

          4.1. Orders will be deemed accepted by Novartis unless Novartis
               provides notification of rejection in accordance with the
               immediately preceding sentence, along with the reason for
               rejection, to Idenix within five (5) Business Days of receipt of
               the order.

          4.2. In the event Novartis believes that the delivery will be delayed
               beyond the confirmed date, it will promptly inform Idenix and
               indicate its anticipated, revised delivery schedule.

     5.   TOLERANCE FOR DELIVERY QUANTITY

          5.1. The tolerance for delivery quantity is +/-[**]%.

4. DEFINITION OF TERMS / GLOSSARY

<TABLE>
<S>                 <C>
DELIVERY            The point of delivery is the point at which Idenix takes
                    possession of goods at the point of entry into the United
                    States.

FIRM ORDER          A written purchase order from Idenix.

LEAD TIME           A span of time required to perform a single or a series of
                    operations, or the time from order placement until delivery
                    to handover point

NET REQUIREMENTS    Idenix generates its net requirements for Ldt Finished
                    Products using forecasting data, quantity on hand, actual
                    and planned inventory. Net requirements are calculated and
                    communicated to Novartis Basel TTOPS

SUPPLY AGREEMENT    Commercial Manufacturing Agreement by and between Idenix and
                    Novartis dated as of June 22, 2006

SKU                 Stock Keeping Unit

UPDATED FORECASTS   Revisions of original forecasts in light of data that
                    subsequently becomes available.
</TABLE>

Page -6- of 12
<PAGE>

                                                       TRADING SERVICE PROCEDURE

                          PART 2 - SPECIFIC PARAMETERS

1.   COMMUNICATION

     1.1. General Information / Addresses

     1.2. Novartis and Idenix contacts

     1.3. Transactions

1.1  GENERAL INFORMATION / ADDRESSES

<TABLE>
<CAPTION>
                  NOVARTIS PHARMA AG
                ------------------------
<S>             <C>
   Address      Novartis Pharma AG
                Lichtstrasse 35
                CH-4056 Basel
                SWITZERLAND

Telephone No.      +41 61 324 11 11

   Fax No.
</TABLE>

<TABLE>
<CAPTION>
  WAREHOUSE       NOVARTIS PHARMA AG
  ---------     ------------------------
<S>             <C>
   Address      Novartis Pharma Stein AG
                Schaffhauserstrasse 101
                Bau 190
                CH-4332 Stein
                SWITZERLAND

Telephone No.      +41 62 868 70 62

   Fax No.         +41 62 868 61 77
</TABLE>

<TABLE>
<CAPTION>
   CUSTOMER      IDENIX PHARMACEUTICALS INC
   --------      --------------------------
<S>             <C>
Address         IDENIX PHARMACEUTICALS, INC.
                60 Hampshire Street
                Cambridge
                MA 02139
                USA

Telephone No.

Fax No.
</TABLE>

<TABLE>
<CAPTION>
   CUSTOMER       Novartis Suffern for Idenix
  WAREHOUSE             Pharmaceuticals
  ---------     -------------------------------
<S>             <C>
   Address      Novartis Pharmaceuticals Corp.,
                Production Centre Suffern
                25 Old Mill Road
                Suffern, NY 10901
                USA

Telephone No.

Fax No.
</TABLE>

Page -7- of 12

<PAGE>

                                                       TRADING SERVICE PROCEDURE

1.2  NOVARTIS AND IDENIX CONTACTS

<TABLE>
<CAPTION>
                                                        TELEPHONE
                                 CONTACT         AT        NO.                     E-MAIL
                            ----------------   ------   ---------   ------------------------------------
<S>                         <C>                <C>      <C>         <C>
NOVARTIS
Brand Pipeline Manager      Enrico Passuello   Basel    +41 61 69   enrico.passuello@novartis.com
                                                        75069
Demand Fulfilment Manager   Sascha Michael     Basel    +41 61 69   sascha_michael.schupnek@novartis.com
                            Schupnek                    71853
Head Team CPOs EU, NCH &    Bernd Kraus        Basel    +41 61 69   bernd.kraus@novartis.com
Special Cust.                                           71809

IDENIX
Demand /Logistics           John Griffin       Idenix               Griffin.john@idenix.com.
Demand /Logistics           Scot Barry         Idenix               Barry.Scot@idenix.com.
QA                          Leigh Boutilier    Idenix               Boutilier.Leigh@idenix.com
QA                          Judy Gordon        Idenix               Gordon.Judy@idenix.com.
</TABLE>

1.3  TRANSACTIONS

<TABLE>
<CAPTION>
                           COMM.        ROUTING    ROUTING
    TRANSACTIONS           METHOD        FROM        TO
    ------------       -------------   --------   --------
<S>                    <C>             <C>        <C>
LDT FINISHED PRODUCT
Net Requirements       Excel/ e-mail    Idenix    Novartis
Orders                 Fax / e-mail     Idenix    Novartis
Invoice                Mail            Novartis   Idenix
</TABLE>

Page -8- of 12

<PAGE>

                                                       TRADING SERVICE PROCEDURE

2.   DELIVERY SPECIFICATIONS

1.   TRANSPORT REQUIREMENTS

     1.1. Novartis Responsibilities

     Idenix nominates the Freight Forwarder(s)/Customs Agent(s), method of
     transport and alternate method of transport as specified hereafter:

<TABLE>
<CAPTION>
FREIGHT        METHOD OF   ALTERNATE
FORWARDER      TRANSPORT     METHOD     CONDITIONS
---------      ---------   ---------   ------------
<S>            <C>         <C>         <C>
Panalpina AG   Air         Sea         Normal goods
</TABLE>

Freight Forwarder(s) - Customs Agent(s)

<TABLE>
<CAPTION>
FREIGHT
FORWARDER              PANALPINA AG
---------          -------------------
<S>                <C>
Transport Method   Airfreight

Address            PANALPINA AG
                   Intern. Transporte
                   Viaduckstr. 42
                   Pastfach 4002 Basel
                   4051 BASEL BS

Telephone No.      061 337 47 47

Fax No.            061 337 47 37

Contact Person
</TABLE>

<TABLE>
<CAPTION>
CUSTOMS AGENTS     B&A BROKERS INC
--------------     -----------------------
<S>                <C>
Transport Method

Address            Natural Nydegger
                   147-39 175th Street
                   Jamaica, New York 11434

Telephone No.      718-995-0131

Fax No.            ____________

Contact Person     Dolores Gallo
</TABLE>

Page -9- of 12

<PAGE>

                                                       TRADING SERVICE PROCEDURE

2.   DELIVERY/INVOICING ADDRESSES

     2.1. Ldt Finished Product

<TABLE>
<CAPTION>
                    SHIP TO ADDRESS
                    -------------------------------
<S>                 <C>
Transport Method    Airfreight

Address             NOVARTIS PHARMACEUTICALS CORP.,
                    Production Centre Suffern
                    25 Old Mill Road
                    Suffern, NY 10901
                    USA

Telephone No.       _____________

Fax No.             +1 8453686463

e-mail              ____________________

Delivery Day/time
Other conditions    ____________________
</TABLE>

<TABLE>
<CAPTION>
                    INVOICE ADDRESS
                    ----------------------
<S>                 <C>
Transport Method    Mail

Invoice Address     IDENIX PHARMACEUTICALS
                    60 Hampshire Street
                    Cambridge
                    MA 02139
                    USA

Telephone No.       _____________

Fax No.             _____________

e-mail              ____________________

Delivery Day/time
Other conditions    ____________________
</TABLE>

Notice:

3.   CASE AND PALLET REQUIREMENTS

     3.1. All pallets shall be wooden Euro pallets phytosanitary treated
          according to ISPM Standard 15, with the following dimensions:

               1200mm x 800mm, with a maximum pallet height of 1400mm Option:
               maximum pallet height 1000mm

     3.2. All transport packaging materials shall meet Novartis requirements:

               Board double wavy, bearing weight of max. 2 stacked pallets

     3.3. Labelling shall be done in accordance with the Novartis requirements
          (attached)

               Font size minimum 6 mm

               On each single package

               On two sides of the pallet and on top, including end consignee

     3.4. LDT finished Product Container Specifications

          Round tin plate can with hooded lid of 20 l volume, in cardboard boxes
          (pallet boxes), made stackable

          Primary Drug packaging: LDPE bags with a quick closure

Page -10- of 12

<PAGE>

                                                       TRADING SERVICE PROCEDURE

4.   DELIVERY DOCUMENTATION

Novartis and Idenix agree on the appropriate delivery documentation, documents
destination and method of communication as specified hereafter (add as
appropriate):

<TABLE>
<CAPTION>
                                                                       METHOD OF
                                          ORIGIN      DESTINATION    COMMUNICATION    HOW
        Document Description            (FROM WHOM)    (TO WHOM)         (HOW)       MANY
        --------------------           ------------   -----------   --------------   ----
<S>                                    <C>            <C>           <C>              <C>
DRUG PRODUCT
Packing list/Consignment Note          Novartis       Idenix        Fax /e-mail        1
Packing list/Consignment Note          Novartis       Suffern       Fax                1
Packing list/Consignment Note          Novartis       Broker        With the goods     1
Packing list/Consignment Note          Novartis       Carrier       With the goods     1
Invoice                                Novartis       Idenix        Fax / e-mail       1
Commercial Invoice                     Novartis       Idenix        Mail / e-mail      1
Invoice                                Novartis       Idenix        With the goods     1
Batch Certificate (Certificate of      Novartis(QA)   Idenix        Mail / e-mail      1
Analysis) /Certificate of Compliance
                                                                    Fax                1
</TABLE>

5.   INVOICE REQUIREMENTS

     5.1. The invoice from Novartis must contain the following information:

          -    Novartis product code

          -    Product description

          -    Quantity

          -    Novartis order number

          -    price per unit

Page -11- of 12

<PAGE>

                                                       TRADING SERVICE PROCEDURE

3.   SKU SPECIFICATION

<TABLE>
<CAPTION>
                         Novartis
                       Product Code      Idenix
Product Description     (Mars No.)    Product Code   Lot Size / Minimum Order Quantity
-------------------    ------------   ------------   ---------------------------------
<S>                    <C>            <C>            <C>
DRUG PRODUCT

LDT600 FCT 600MG.006      852558        9'500 PC     [**] PC / MINIMUM ORDER QUANTITY
                                                               TO BE DEFINED
</TABLE>

Page -12- of 12
<PAGE>

     EXHIBIT C - CALCULATION OF PRICE OF API

(All numbers in USD per kg)

Period [**]

<TABLE>
<CAPTION>
                       COMPONENTS                        PURCHASE
                          INCL.                            PRICE
VOLUME   PROCESSING   CHLOROSUGAR   [**]   [**]   [**]   (PER KG)
------   ----------   -----------   ----   ----   ----   --------
<S>      <C>          <C>           <C>    <C>    <C>    <C>
[**]        [**]          [**]      [**]   [**]   [**]     [**]
[**]        [**]          [**]      [**]   [**]   [**]     [**]
[**]        [**]          [**]      [**]   [**]   [**]     [**]
[**]        [**]          [**]      [**]   [**]   [**]     [**]
[**]        [**]          [**]      [**]   [**]   [**]     [**]
[**]        [**]          [**]      [**]   [**]   [**]     [**]
[**]        [**]          [**]      [**]   [**]   [**]     [**]
</TABLE>

[**]

Period [**]

<TABLE>
<CAPTION>
                          COMPONENTS                        PURCHASE
                            INCL.                             PRICE
VOLUME   PROCESSING***   CHLOROSUGAR   [**]   [**]   [**]   (PER KG)
------   -------------   -----------   ----   ----   ----   --------
<S>      <C>             <C>           <C>    <C>    <C>    <C>
[**]          [**]           [**]      [**]   [**]   [**]     [**]
[**]          [**]           [**]      [**]   [**]   [**]     [**]
[**]          [**]           [**]      [**]   [**]   [**]     [**]
[**]          [**]           [**]      [**]   [**]   [**]     [**]
[**]          [**]           [**]      [**]   [**]   [**]     [**]
[**]          [**]           [**]      [**]   [**]   [**]     [**]
[**]          [**]           [**]      [**]   [**]   [**]     [**]
</TABLE>

[**]

Period [**]

<TABLE>
<CAPTION>
                          COMPONENTS                        PURCHASE
                            INCL.                             PRICE
VOLUME   PROCESSING***   CHLOROSUGAR   [**]   [**]   [**]   (PER KG)
------   -------------   -----------   ----   ----   ----   --------
<S>      <C>             <C>           <C>    <C>    <C>    <C>
[**]          [**]           [**]      [**]   [**]   [**]     [**]
[**]          [**]           [**]      [**]   [**]   [**]     [**]
[**]          [**]           [**]      [**]   [**]   [**]     [**]
[**]          [**]           [**]      [**]   [**]   [**]     [**]
[**]          [**]           [**]      [**]   [**]   [**]     [**]
[**]          [**]           [**]      [**]   [**]   [**]     [**]
[**]          [**]           [**]      [**]   [**]   [**]     [**]
</TABLE>

[**]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}]]