Document:

Exhibit 10.1

    
       

      Exhibit
        10.1

       

      EXECUTION
        COPY

      

        
          

          

        

        
           

        

        
          CREDIT
            AGREEMENT

          
             

            dated
              as
              of October 5, 2006

             

            among

             

            ADVANCE
              AUTO PARTS, INC.,

             

            ADVANCE
              STORES COMPANY, INCORPORATED, as Borrower,

             

            The
              Lenders Party Hereto

             

          

        

        
          and

           

          JPMORGAN
            CHASE BANK, N.A.

          as
            Administrative Agent

           

          ___________________________

           

          J.P.
            MORGAN SECURITIES INC.,

          as
            Sole
            Lead Arranger and Sole Bookrunner

         

      

      

        
          

          

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

       

      
        	
                TABLE
                  OF CONTENTS

              
	
                 

              	
                 

              	
                 

              	
                
                  Page 

                

              
	 	 	 
	
                ARTICLE
                  I

              
	 
	
                Definitions

              
	 	 	 
	 	 	
                 

              
	SECTION 1.01. 	Defined Terms	
                1

              
	SECTION 1.02.	Classification of Loans
                and
                Borrowings	
                17

              
	SECTION 1.03.	Terms Generally	
                17

              
	SECTION 1.04.	Accounting Terms; GAAP;
                Fiscal
                Month	
                18

              
	 	 	 
	
                ARTICLE
                  II

              
	 	 	 
	
                The
                  Credits

              
	 	 	 
	SECTION 2.01.	Commitments	
                18

              
	SECTION 2.02.	Loans and Borrowings	
                18

              
	SECTION 2.03.	Requests for Borrowings	
                19

              
	SECTION 2.04.	Swingline Loans	
                20

              
	SECTION 2.05.	Letters of Credit	
                21

              
	SECTION 2.06.	Funding of Borrowings	
                26

              
	SECTION 2.07.	Interest Elections	
                26

              
	SECTION 2.08.	Termination and Reduction
                of
                Commitments	
                28

              
	SECTION 2.09.	Repayment of Loans; Evidence
                of Debt	
                28

              
	SECTION 2.10.	Prepayment of Loans	
                29

              
	SECTION 2.11.	Fees	
                29

              
	SECTION 2.12.	Interest	
                31

              
	SECTION 2.13.	Alternate Rate of
                Interest	
                31

              
	SECTION 2.14.	Increased Costs	
                32

              
	SECTION 2.15.	Break Funding Payments	
                33

              
	SECTION 2.16.	Taxes	
                33

              
	SECTION 2.17.	Payments Generally; Pro
                Rata
                Treatment; Sharing of Set-offs	
                35

              
	SECTION 2.18.	Mitigation Obligations;
                Replacement
                of Lenders	
                37

              
	SECTION 2.19.	
                Increase
                  in Revolving Commitments

              	
                37

              
	 	 	 
	
                ARTICLE
                  III

              
	 	 	 
	
                Representations
                  and
                  Warranties

              
	 	 	 
	SECTION 3.01.	Organization; Powers	
                39

              
	SECTION 3.02.	Authorization;
                Enforceability	
                39

              
	SECTION 3.03.	Governmental Approvals;
                No
                Conflicts	
                39

              
	SECTION 3.04.	Financial Condition; No
                Material
                Adverse Change	
                40

              
	SECTION 3.05.	Properties	
                40

              
	SECTION 3.06.	Litigation and Environmental
                Matters	
                40

              

      

      
         

        
          i

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

         

        
          	SECTION 3.07. 	
                  Compliance
                    with Laws and Agreements

                	
                  41

                
	SECTION 3.08.	
                  Investment
                    Company Status

                	
                  41

                
	SECTION 3.09.	
                  Taxes

                	
                  41

                
	SECTION 3.10.	ERISA	
                  41

                
	SECTION 3.11.	Disclosure	
                  42

                
	SECTION 3.12.	Subsidiaries	
                  42

                
	SECTION 3.13.	Insurance	
                  42

                
	SECTION 3.14.	Solvency	
                  42

                
	 	 	 
	
                  ARTICLE
                    IV

                
	 	 	 
	
                  Conditions

                
	 	 	 
	SECTION 4.01.	
                  Effective
                    Date

                	
                  42

                
	SECTION 4.02.	
                  Each
                    Credit Event

                	
                  44

                
	 	 	
                   

                
	
                  ARTICLE
                    V

                
	 	 	
                   

                
	
                  Affirmative
                    Covenants

                
	 	 	 
	SECTION 5.01.	
                  Financial
                    Statements and Other Information

                	
                  44

                
	SECTION 5.02.	
                  Notices
                    of Material Events

                	
                  46

                
	SECTION 5.03.	Existence; Conduct of
                  Business	
                  47

                
	SECTION 5.04.	
                  Payment
                    of Obligations

                	
                  47

                
	SECTION 5.05.	
                  Maintenance
                    of Properties

                	
                  47

                
	SECTION 5.06.	
                  Insurance

                	
                  47

                
	SECTION 5.07.	
                  Books
                    and Records; Inspection and Audit Rights

                	
                  47

                
	SECTION 5.08.	
                  Compliance
                    with Laws

                	
                  48

                
	SECTION 5.09.	Use of Proceeds and
                  Letters of
                  Credit	
                  48

                
	 	 	 
	
                  ARTICLE
                    VI

                
	 	 	 
	
                  Negative
                    Covenants

                
	 	 	 
	SECTION 6.01.	
                  Subsidiary
                    Indebtedness

                	
                  48

                
	SECTION 6.02.	Liens	
                  49

                
	SECTION 6.03.	Fundamental Changes	
                  50

                
	SECTION 6.04.	Investments, Loans,
                  Advances,
                  Guarantees and Acquisitions	
                  51

                
	SECTION 6.05.	Swap Agreements	
                  52

                
	SECTION 6.06.	Restrictive Agreements	
                  52

                
	SECTION 6.07.	
                  Sale
                    and Lease-Back Transactions

                	
                  53

                
	SECTION 6.08.	Leverage Ratio	
                  53

                
	SECTION 6.09.	Consolidated Coverage
                  Ratio	
                  53

                
	 	 	 
	
                  ARTICLE
                    VII

                
	 	 	 
	
                  Events
                    of
                    Default

                

        

         

        ii

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

      
         

        
          	
                  ARTICLE
                    VIII

                
	 
	
                  The
                    Administrative Agent

                
	 
	
                  ARTICLE
                    IX

                
	 
	
                  Miscellaneous

                
	 
	SECTION 9.01.	
                  Notices

                	
                  58

                
	SECTION 9.02.	
                  Waivers;
                    Amendments

                	
                  59

                
	SECTION 9.03.	Expenses; Indemnity;
                  Damage
                  Waiver	
                  60

                
	SECTION 9.04.	Successors and Assigns	
                  61

                
	SECTION 9.05.	Survival	
                  65

                
	SECTION 9.06.	Counterparts; Integration;
                  Effectiveness	
                  65

                
	SECTION 9.07.	
                  Severability

                	
                  65

                
	SECTION 9.08.	Right of Setoff	
                  66

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

                	
                  66

                
	SECTION 9.10.	
                  WAIVER
                    OF JURY TRIAL

                	
                  67

                
	SECTION 9.11.	Headings	
                  67

                
	SECTION 9.12.	
                  Confidentiality

                	
                  67

                
	SECTION 9.13.	
                  Interest
                    Rate Limitation

                	
                  68

                
	SECTION 9.14.	USA Patriot Act	
                  68

                

        

         

      

       

      SCHEDULES:

       

      
        
          	Schedule 2.01	—	Revolving Commitments
	Schedule 3.06	—	Disclosed Matters
	Schedule 3.12	—	Subsidiaries
	Schedule 3.13	—	Insurance
	Schedule 6.01	—	Existing Indebtedness
	Schedule 6.02	—	Existing Liens
	Schedule 6.04	—	Existing Investments
	Schedule 6.06	—	Existing
                  Restrictions

        

      

       

       

      EXHIBITS:

       

      
        
          
            	Exhibit A	—	
                    Form
                      of Assignment and Assumption

                  
	Exhibit B	—	
                    Form
                      of Guarantee Agreement

                  
	Exhibit C	—	
                    Form
                      of Opinion of Counsel for the Loan
                      Parties

                  

          

        

         

      

      iii

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      CREDIT
        AGREEMENT dated as of October 5, 2006, among ADVANCE AUTO PARTS, INC., ADVANCE
        STORES COMPANY, INCORPORATED, the LENDERS party hereto, and JPMORGAN CHASE
        BANK,
        N.A., as Administrative Agent.

       

      The
        parties hereto agree as follows:

       

      ARTICLE
        I

       

      Definitions

       

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

       

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

       

      “Adjusted
        Consolidated Net Income”
means,
        for any period, net income or loss of Holdings and its Subsidiaries for such
        period determined on a consolidated basis in accordance with GAAP, provided
        that,
        without duplication, (a) there shall be excluded (i) the income of any
        Person in which any other Person (other than the Borrower or any of the
        Subsidiaries or any director holding qualifying shares in compliance with
        applicable law) has a joint interest, except such income shall be included
        to
        the extent of the amount of dividends or other distributions actually paid
        to
        the Borrower or any of the Subsidiaries by such Person during such period,
        (ii) the income (or loss) of any Person accrued prior to the date it
        becomes a Subsidiary or is merged into or consolidated with the Borrower
        or any
        of the Subsidiaries or the date that Person’s assets are acquired by the
        Borrower or any of the Subsidiaries and (iii) gains and losses from, or
        incurred in connection with, the sale, liquidation or other disposition of
        assets outside the ordinary course of business and (b) for purposes of
        calculating the Leverage Ratio, Adjusted Consolidated Net Income shall be
        determined on a pro forma basis to give effect to any Permitted Acquisitions
        and
        any divestitures by the Borrower or any Subsidiary of all or substantially
        all
        the assets of , or all the Equity Interests in, a Person or division or line
        of
        business of a Person occurring during such period as if such transactions
        had
        occurred on the first day of such period.

       

      “Adjusted
        LIBO Rate”
means
        an interest rate per annum (rounded upwards, if necessary, to the next 1/16
        of
        1%) equal to, with respect to any Eurodollar Borrowing for any Interest Period,
        (i) the LIBO Rate for such Interest Period multiplied by (ii) the Statutory
        Reserve Rate.

       

      “Administrative
        Agent”
means
        JPMorgan Chase Bank, N.A., in its capacity as administrative agent for the
        Lenders hereunder.

       

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

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      2

       

      “Affiliate”
means,
        with respect to a specified Person, another Person that directly, or indirectly
        through one or more intermediaries, Controls or is Controlled by or is under
        common Control with the Person specified.

       

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

       

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

       

      “Applicable
        Rate”
means,
        for any day, with respect to any ABR Loan or Eurodollar Loan or with respect
        to
        commitment fees in respect of Revolving Commitments payable under
        Section 2.11(a), as the case may be, the applicable rate per annum set
        forth below under the caption “ABR Spread”, “Eurodollar Spread” or “Commitment
        Fee Rate”, as the case may be, based upon the Ratings by S&P and Moody’s,
        respectively, applicable on such date:

       

      
        	
                Index
                  Debt Ratings

              	
                ABR

                Spread

              	
                Eurodollar

                Spread

              	
                Commitment
                  

                Fee
                  Rate

              
	
                Category
                  1

                Equal
                  to or greater than BBB+/Baa1

              	
                0.0%

              	
                0.40%

              	
                0.090%

              
	
                Category
                  2

                Equal
                  to or greater than BBB/Baa2

              	
                0.0%

              	
                0.50%

              	
                0.100%

              
	
                Category
                  3

                Equal
                  to or greater than BBB-/Baa3

              	
                0.0%

              	
                0.625%

              	
                0.125%

              
	
                Category
                  4

                Equal
                  to or greater than BB+/Ba1

              	
                0.0%

              	
                0.75%

              	
                0.150%

              
	
                Category
                  5

                Equal
                  to or greater than BB/Ba2

              	
                0.0%

              	
                1.00%

              	
                0.200%

              
	
                Category
                  6

                Lower
                  than BB/Ba2

              	
                0.25%

              	
                1.25%

              	
                0.250%

              

      

       

      For
        purposes of the foregoing, (a) if either Moody’s or S&P shall not have
        in effect a Rating (other than by reason of the circumstances referred to
        in the
        last sentence of this paragraph), then such rating agency shall be deemed
        to
        have established a Rating in Category 6; (b) if the Ratings established or
        deemed to have been established by Moody’s and S&P for the Index Debt shall
        fall within different Categories, the Applicable Rate shall be based on the
        higher of the two Ratings unless one of the two Ratings is two or more
        Categories lower than the other, in which case the Applicable Rate shall
        be
        determined by reference to the Category next below that of the higher of
        the

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      3

       

      two
        Ratings; and (c) if the Ratings established or deemed to have been
        established by Moody’s and S&P shall be changed (other than as a result of a
        change in the rating system of Moody’s or S&P), such change shall be
        effective as of the date on which it is first announced by the applicable
        rating
        agency, irrespective of when notice of such change shall have been furnished
        by
        the Borrower to the Administrative Agent and the Lenders pursuant to Section
        5.01 or otherwise. Each change in the Applicable Rate apply during the period
        commencing on the effective date of such change and ending on the date
        immediately preceding the effective date of the next such change. If the
        rating
        system of Moody’s or S&P shall change, or if either such rating agency shall
        cease to be in the business of rating corporate debt obligations, the Borrower
        and the Lenders shall negotiate in good faith to amend this definition to
        reflect such changed rating system or the unavailability of Ratings from
        such
        rating agency and, pending the effectiveness of any such amendment, the
        Applicable Rate shall be determined by reference to the Rating most recently
        in
        effect prior to such change or cessation.

       

      “Approved
        Fund”
has
        the
        meaning assigned to such term in Section 9.04(b).

       

      “Assessment
        Rate”
means,
        for any day, the annual assessment rate in effect on such day that is payable
        by
        a member of the Bank Insurance Fund classified as “well-capitalized” and within
        supervisory subgroup “B” (or a comparable successor risk classification) within
        the meaning of 12 C.F.R. Part 327 (or any successor provision) to the
        Federal Deposit Insurance Corporation for insurance by such Corporation of
        time
        deposits made in dollars at the offices of such member in the United States;
        provided
        that if,
        as a result of any change in any law, rule or regulation, it is no longer
        possible to determine the Assessment Rate as aforesaid, then the Assessment
        Rate
        shall be such annual rate as shall be determined by the Administrative Agent
        to
        be representative of the cost of such insurance to the Lenders.

       

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

       

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

       

      “Borrower”
means
        Advance Stores Company, Incorporated, a Virginia corporation.

       

      “Borrowing”
means
        (a) Revolving Loans of the same Type, made, converted or continued on the
        same date and, in the case of Eurodollar Loans, as to which a single Interest
        Period is in effect, or (b) a Swingline Loan.

       

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

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      4

       

      “Business
        Day”
means
        any day that is not a Saturday, Sunday or other day on which commercial banks
        in
        New York City are authorized or required by law to remain closed; provided
        that,
        when used in connection with a Eurodollar Loan, the term “Business Day” shall
        also exclude any day on which banks are not open for dealings in dollar deposits
        in the London interbank market.

       

      “Capital
        Lease Obligations”
of
        any
        Person means the obligations of such Person to pay rent or other amounts
        under
        any lease of (or other arrangement conveying the right to use) real or personal
        property, or a combination thereof, which obligations are required to be
        classified and accounted for as capital leases on a balance sheet of such
        Person
        under GAAP, and the amount of such obligations shall be the capitalized amount
        thereof determined in accordance with GAAP.

       

      “Change
        in Control”
means
        at any time, (a) the acquisition of ownership, directly or indirectly,
        beneficially or of record, by any Person other than Holdings of any shares
        of
        capital stock of the Borrower; (b) the acquisition of ownership, directly
        or
        indirectly, beneficially or of record, by any Person or group (within the
        meaning of Rule 13d-5 under the United States Securities and Exchange Act
        of 1934 in effect on the date hereof), of shares representing more than 25%
        of
        the aggregate ordinary voting power represented by the issued and outstanding
        capital stock of Holdings; or (c) occupation of a majority of the seats (other
        than vacant seats) on the board of directors of Holdings by Persons who were
        not
        Continuing Directors.

       

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

       

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

       

      “Consolidated
        Coverage Ratio”
means,
        for any period, the ratio of (a) Consolidated EBITDAR for such period to
        (b) the
        sum of Consolidated Interest Expense plus Consolidated Rent Expense for such
        period.

       

      “Commitment”
means
        a
        Revolving Commitment, an Incremental Revolving Commitment, or any combination
        thereof (as the context requires).

       

      “Consolidated
        EBITDA”
means,
        for any period, Adjusted Consolidated Net Income for such period, plus, without
        duplication and to the extent deducted from revenues in determining Adjusted
        Consolidated Net Income, the sum of (a) consolidated interest expense for
        such period, (b) the aggregate amount of letter of credit fees accrued
        during such period, (c) the aggregate amount of income tax expense for such
        period, 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      5

       

      (d) all
        depreciation and amortization expense for such period and (e) other
        non-cash charges for such period (excluding any non-cash charges that constitute
        an accrual of or reserve for future cash payments), and minus, without
        duplication and to the extent added to revenues in determining Adjusted
        Consolidated Net Income for such period, all non-cash gains during such period,
        all as determined on a consolidated basis with respect to Holdings and the
        Subsidiaries in accordance with GAAP.

       

      “Consolidated
        EBITDAR”
means,
        for any period, the sum of Consolidated EBITDA for such period plus Consolidated
        Rent Expense for such period.

       

      “Consolidated
        Interest Expense”
means,
        for any period, the interest expense of Holdings and its Subsidiaries for
        such
        period, determined on a consolidated basis in accordance with GAAP, less,
        to the
        extent included in interest expense, the amortization during such period
        of debt
        issuance and deferred financing costs, commissions and fees; provided,
        however,
        that
        the aggregate amount of such amortization that may be excluded in calculating
        Consolidated Interest Expense in respect of any financing transaction shall
        not
        exceed 3.5% of the aggregate amount of such financing.

       

      “Consolidated
        Net Income”
means,
        for any period, net income or loss of Holdings and its Subsidiaries for such
        period determined on a consolidated basis in accordance with GAAP.

       

      “Consolidated
        Rent Expense”
means,
        for any period , the rental expense attributable to leases of real property
        that
        is deducted in determining Adjusted Consolidated Net Income for such period,
        determined on a consolidated basis in accordance with GAAP.

       

      “Continuing
        Directors”
means
        the directors of Holdings on the Effective Date and each other director,
        if, in
        each case, such other director’s nomination for election to the board of
        directors of Holdings is approved by a majority of the then Continuing
        Directors.

       

      “Control”
means
        the possession, directly or indirectly, of the power to direct or cause the
        direction of the management or policies of a Person, whether through the
        ability
        to exercise voting power, by contract or otherwise. “Controlling”
and
        “Controlled”
have
        meanings correlative thereto.

       

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

       

      “Deferred
        Compensation Obligations”
means
        a
        non-qualified deferred compensation plan that allows executives of the Borrower
        and the Subsidiaries to defer receipt of specified portions of base and bonus
        earnings each calendar year. Deferrals are maintained as a liability, along
        with
        assets owned by the Borrower, in a trust owned by the Borrower.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      6

       

      “Designated
        Vendor”
means
        any vendor or supplier from which the Borrower purchases inventory and that
        has
        been designated by the Borrower as a participant in a Permitted Vendor
        Financing.

       

      “Designated
        Vendor Accounts”
means
        (a) accounts receivable owed by the Borrower in respect of inventory purchased
        from a Designated Vendor or (b) drafts issued by the Borrower as payment
        in full
        of one or more of such accounts receivable; provided
        that
        such accounts receivable or drafts shall constitute Designated Vendor Accounts
        only after having been sold by such Designated Vendor to a DVA Creditor pursuant
        to a Permitted Vendor Financing and only so long as owed to a DVA
        Creditor.

       

      “Disclosed
        Matters”
means
        the actions, suits and proceedings and the environmental matters disclosed
        in
        Schedule 3.06.

       

      “DVA
        Creditor”
means
        (a) any financial institution that has agreed to purchase one or more
        Designated Vendor Accounts from a Designated Vendor pursuant to a Permitted
        Vendor Financing and (b) any successor or assignee of any such financial
        institution that holds any Designated Vendor Accounts originally purchased
        by
        such financial institution, provided that such successor or assignee is not
        a
        Designated Vendor, a Loan Party or an Affiliate of a Designated Vendor or
        a Loan
        Party.

       

      “DVA
        Obligations”
means
        the obligations of the Borrower to pay Designated Vendor Accounts. For purposes
        of this Agreement, the amount of any DVA Obligation at any time shall be
        the
        entire amount payable in respect thereof as and when due.

       

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

       

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

       

      “Environmental
        Laws”
means
        all laws, rules, regulations, codes, ordinances, orders, decrees, judgments,
        injunctions, notices or binding agreements issued, promulgated or entered
        into
        by or with any Governmental Authority, relating in any way to the environment,
        preservation or reclamation of natural resources, the management, release
        or
        threatened release of any Hazardous Material or to health and safety
        matters.

       

      “Environmental
        Liability”
means
        any liability, contingent or otherwise (including any liability for damages,
        costs of environmental remediation, fines, penalties or indemnities), of
        Holdings, the Borrower or any Subsidiary directly or indirectly resulting
        from
        or based upon (a) violation of any Environmental Law, (b) the
        generation, use, handling, transportation, storage, treatment or disposal
        of any
        Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the
        release or threatened release of any Hazardous Materials 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.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      7

       

      “Equity
        Interests”
means
        shares of capital stock, partnership interests, membership interests in a
        limited liability company, beneficial interests in a trust or other equity
        ownership interests in a Person or any warrants, options or other rights
        to
        acquire such interests.

       

      “ERISA”
means
        the Employee Retirement Income Security Act of 1974, as amended from time
        to
        time.

       

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

       

      “ERISA
        Event”
means
        (a) any “reportable event”, as defined in Section 4043 of ERISA or the
        regulations issued thereunder with respect to a Plan (other than an event
        for
        which the 30-day notice period is waived); (b) the existence with respect
        to any Plan of an “accumulated funding deficiency” (as defined in
        Section 412 of the Code or Section 302 of ERISA), whether or not
        waived; (c) the filing pursuant to Section 412(d) of the Code or
        Section 303(d) of ERISA of an application for a waiver of the minimum
        funding standard with respect to any Plan; (d) the incurrence by the
        Borrower or any of its ERISA Affiliates of any liability under Title IV of
        ERISA with respect to the termination of any Plan; (e) the receipt by the
        Borrower or any ERISA Affiliate from the PBGC or a plan administrator of
        any
        notice relating to an intention to terminate any Plan or Plans or to appoint
        a
        trustee to administer any Plan; (f) the incurrence by the Borrower or any
        of its ERISA Affiliates of any liability with respect to the withdrawal or
        partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt
        by the Borrower or any ERISA Affiliate of any notice, or the receipt by any
        Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice,
        concerning the imposition of Withdrawal Liability or a determination that
        a
        Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
        within the meaning of Title IV of ERISA.

       

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

       

      “Event
        of Default”
has
        the
        meaning assigned to such term in Article VII.

       

      “Excluded
        Margin Stock”
means
        any shares of capital stock of Holdings that constitute “margin stock” within
        the meaning of Regulation U of the Board and are held as treasury stock by
        Holdings.

       

      “Excluded
        Taxes”
means,
        with respect to the Administrative Agent, any Lender, the Issuing Bank or
        any
        other recipient of any payment to be made by or on account of any obligation
        of
        the Borrower hereunder, (a) income or franchise taxes imposed on (or
        measured by) its net income by the United States of America, or by the
        jurisdiction under the laws of which such recipient is organized or in which
        its
        principal

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      8

       

      office
        is
        located or, in the case of any Lender, in which its applicable lending office
        is
        located, (b) any branch profits taxes imposed by the United States of
        America or any similar tax imposed by any other jurisdiction in which the
        Borrower is located and (c) in the case of a Foreign Lender (other than an
        assignee pursuant to a request by the Borrower under Section 2.18(b)), any
        withholding tax that is imposed on amounts payable to such Foreign Lender
        at the
        time such Foreign Lender becomes a party to this Agreement (or designates
        a new
        lending office) or is attributable to such Foreign Lender’s failure to comply
        with Section 2.16(e), except to the extent that such Foreign Lender (or its
        assignor, if any) was entitled, at the time of designation of a new lending
        office (or assignment), to receive additional amounts from the Borrower with
        respect to such withholding tax pursuant to Section 2.16(a).

       

      “Existing
        Credit Agreement”
means
        the Amended and Restated Credit Agreement dated November 3, 2004, as
        amended, among Holdings, the Borrower, the lenders party thereto, and JPMorgan
        Chase Bank, N.A., as administrative agent.

       

      “Existing
        Letters of Credit”
means
        all letters of credit outstanding under the Existing Credit Agreement as
        of the
        Effective Date.

       

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

       

      “Financial
        Officer”
means
        the chief financial officer, vice president of finance, principal accounting
        officer, treasurer or controller of Holdings or the Borrower, as
        applicable.

       

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

       

      “Foreign
        Subsidiary”
means
        any Subsidiary that is organized under the laws of a jurisdiction other than
        the
        United States of America or any State thereof or the District of
        Columbia.

       

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

       

      “Governmental
        Authority”
means
        the government of the United States of America, any other nation or any
        political subdivision thereof, whether state or local, and any agency,
        authority, instrumentality, regulatory body, court, central bank or other
        entity

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      9

       

      exercising
        executive, legislative, judicial, taxing, regulatory or administrative powers
        or
        functions of or pertaining to government.

       

      “Guarantee”
of
        or
        by any Person (the “guarantor”)
        means
        any obligation, contingent or otherwise, of the guarantor guaranteeing or
        having
        the economic effect of guaranteeing any Indebtedness or other obligation
        of any
        other Person (the “primary
        obligor”)
        in any
        manner, whether directly or indirectly, and including any obligation of the
        guarantor, direct or indirect, (a) to purchase or pay (or advance or supply
        funds for the purchase or payment of) such Indebtedness or other obligation
        or
        to purchase (or to advance or supply funds for the purchase of) any security
        for
        the payment thereof, (b) to purchase or lease property, securities or
        services for the purpose of assuring the owner of such Indebtedness or other
        obligation of the payment thereof, (c) to maintain working capital, equity
        capital or any other financial statement condition or liquidity of the primary
        obligor so as to enable the primary obligor to pay such Indebtedness or other
        obligation or (d) as an account party in respect of any letter of credit or
        letter of guaranty issued to support such Indebtedness or obligation;
provided,
        that
        the term “Guarantee” shall not include endorsements for collection or deposit in
        the ordinary course of business.

       

      “Guarantee
        Agreement”
means
        the Guarantee Agreement, substantially in the form of Exhibit B, made by
        Holdings in favor of the Administrative Agent for the benefit of the
        Lenders.

       

      “Hazardous
        Materials”
means
        all explosive or radioactive substances or wastes and all hazardous or toxic
        substances, wastes or other pollutants, including petroleum or petroleum
        distillates, asbestos or asbestos containing materials, polychlorinated
        biphenyls, radon gas, infectious or medical wastes and all other substances
        or
        wastes of any nature regulated pursuant to any Environmental Law.

       

      “Holdings”
means
        Advance Auto Parts, Inc., a Delaware corporation.

       

      “Indebtedness”
of
        any
        Person means, without duplication, (a) all obligations of such Person for
        borrowed money or with respect to deposits or advances of any kind, (b) all
        obligations of such Person evidenced by bonds, debentures, notes or similar
        instruments, (c) all obligations of such Person under conditional sale or
        other title retention agreements relating to property acquired by such Person,
        (d) all obligations of such Person in respect of the deferred purchase
        price of property or services (excluding (i) accounts payable incurred in
        the
        ordinary course of business that are not overdue by more than 90 days and
        (ii) Deferred Compensation Obligations), (e) all Indebtedness of others
        secured by (or for which the holder of such Indebtedness has an existing
        right,
        contingent or otherwise, to be secured by) any Lien on property owned or
        acquired by such Person, whether or not the Indebtedness secured thereby
        has
        been assumed, (f) all Guarantees by such Person of Indebtedness of others,
        (g) all Capital Lease Obligations of such Person, (h) all obligations,
        contingent or otherwise, of such Person as an account party in respect of
        letters of credit and letters of guaranty, (i) all obligations, contingent
        or otherwise, of such Person in respect of bankers’ acceptances and (j) all DVA
        Obligations. The Indebtedness of any Person shall include the Indebtedness
        of
        any other entity 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      10

       

      (including
        any partnership in which such Person is a general partner) to the extent
        such
        Person is liable therefor as a result of such Person’s ownership interest in or
        other relationship with such entity, except to the extent the terms of such
        Indebtedness provide that such Person is not liable therefor. The amount
        of any
        Indebtedness described in clause (f) above shall be limited to the maximum
        amount payable under the applicable Guarantee of such Person if such Guarantee
        contains limitations on the amount payable thereunder.

       

      “Indemnified
        Taxes”
means
        Taxes other than Excluded Taxes.

       

      “Index
        Debt”
means
        senior, unsecured, long-term indebtedness for borrowed money of Holdings
        that is
        not guaranteed by any other Person or subject to any other credit
        enhancement.

       

      “Information
        Memorandum”
means
        the Confidential Information Memorandum dated September 2006 relating to
        the
        Borrower and the Transactions.

       

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

       

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

       

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

       

      “Issuing
        Bank”
means
        (a) JPMorgan Chase Bank, N.A., in its capacity as the issuer of (i) Letters
        of Credit hereunder and (ii) Existing Letters of Credit under the Existing
        Credit Agreement, in each case including its successors in such capacity
        as

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      11

       

      provided
        in Section 2.05(i), or (b) any other Lender approved by the Administrative
        Agent and the Borrower. An Issuing Bank may, in its discretion, arrange for
        one
        or more Letters of Credit to be issued by Affiliates of such Issuing Bank,
        in
        which case the term “Issuing Bank” shall include any such Affiliate with respect
        to Letters of Credit issued by such Affiliate.

       

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

       

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

       

      “Lenders”
means
        the Persons listed on Schedule 2.01 and any other Person that shall have
        become a party hereto pursuant to an Assignment and Assumption, other than
        any
        such Person that ceases to be a party hereto pursuant to an Assignment and
        Assumption. Unless the context otherwise requires, the term “Lenders” includes
        the Swingline Lender.

       

      “Letter
        of Credit”
means
        any letter of credit issued pursuant to this Agreement. Each Existing Letter
        of
        Credit will be deemed to constitute a Letter of Credit for all purposes under
        the Loan Documents as though each Existing Letter of Credit had been issued
        hereunder on the Effective Date.

       

      “Leverage
        Ratio”
means,
        on any date, the ratio of (a) Total Debt as of such date to
        (b) Consolidated EBITDA for the period of four consecutive fiscal quarters
        of Holdings most recently ended as of such date (or, if such date is not
        the
        last day of a fiscal quarter, then most recently ended prior to such date),
        all
        determined on a consolidated basis in accordance with GAAP.

       

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

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      12

       

      “Lien”
means,
        with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
        hypothecation, encumbrance, charge or security interest in, on or of such
        asset,
        (b) the interest of a vendor or a lessor under any conditional sale
        agreement, capital lease or title retention agreement (or any financing lease
        having substantially the same economic effect as any of the foregoing) relating
        to such asset and (c) in the case of securities, any purchase option, call
        or similar right of a third party with respect to such securities.

       

      “Loan
        Documents”
means
        this Agreement, the promissory notes, if any, executed and delivered pursuant
        to
        Section 2.09(e), and the Guarantee Agreement.

       

      “Loan
        Parties”
means
        Holdings and the Borrower.

       

      “Loans”
means
        the loans made by the Lenders to the Borrower pursuant to this
        Agreement.

       

      “Material
        Adverse Effect”
means
        a
        material adverse effect on (a) the business, assets, operations, prospects
        or condition, financial or otherwise, of Holdings, the Borrower and the
        Subsidiaries taken as a whole, (b) the ability of any Loan Party to perform
        any of its obligations under any Loan Document or (c) the rights of or
        benefits available to the Lenders under any Loan Document.

       

      “Material
        Indebtedness”
means
        Indebtedness (other than the Loans and Letters of Credit), or obligations
        in
        respect of one or more Swap Agreements, of any one or more of Holdings, the
        Borrower and their Subsidiaries in an aggregate principal amount exceeding
        $25,000,000. For purposes of determining Material Indebtedness, the “principal
        amount” of the obligations of Holdings, the Borrower or any Subsidiary in
        respect of any Swap Agreement at any time shall be the maximum aggregate
        amount
        (giving effect to any netting agreements) that Holdings, the Borrower or
        such
        Subsidiary would be required to pay if such Swap Agreement were terminated
        at
        such time.

       

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

       

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

       

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

       

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

       

      “Permitted
        Acquisition”
means
        any acquisition by the Borrower or a Subsidiary of the Borrower of all or
        substantially all the assets of, or all the Equity Interests in, a Person
        or
        division, line of business or business unit of a Person if, immediately after
        giving effect thereto, (a) no Default has occurred and is continuing or

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      13

       

      would
        result therefrom, (b) all transactions related thereto are consummated in
        accordance with applicable laws, (c) all the Equity Interests of any
        Subsidiary formed for the purpose of or resulting from such acquisition shall
        be
        owned directly by the Borrower or a Subsidiary of the Borrower, (d) the
        Borrower and its Subsidiaries are in compliance, on a pro forma basis after
        giving effect to such acquisition, with the covenants contained in
        Sections 6.08 and 6.09 recomputed as of the last day of the most recently
        ended fiscal quarter of the Borrower for which financial statements are
        available, as if such acquisition (and any related incurrence or repayment
        of
        Indebtedness, with any new Indebtedness being deemed to be amortized over
        the
        applicable testing period in accordance with its terms, and assuming that
        any
        Revolving Loans borrowed in connection with such acquisition are repaid with
        excess cash balances when available) had occurred on the first day of each
        relevant period for testing such compliance and (e) the Borrower has
        delivered to the Administrative Agent an officers’ certificate to the effect set
        forth in clauses (a), (b), (c) and (d) above, together with all relevant
        financial information for the Person or assets to be acquired.

       

      “Permitted
        Encumbrances”
        means:

       

      (a)
        Liens
        imposed by law for taxes or government assessments that are not yet due or
        are
        being contested in compliance with Section 5.04;

       

      (b)
        carriers’,
        warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens
        imposed by law, arising in the ordinary course of business and securing
        obligations that are not overdue by more than 60 days or are being
        contested in compliance with Section 5.04;

       

      (c)
        pledges
        and deposits made in the ordinary course of business in compliance with workers’
compensation, unemployment insurance and other social security laws or
        regulations;

       

      (d)
        deposits
        (and, to the extent securing a trade contract or indemnity bond, Liens on
        assets
        to which such contract or bond relates) to secure the performance of bids,
        trade
        contracts, leases, statutory obligations, surety, indemnity and appeal bonds,
        performance bonds and other obligations of a like nature, in each case in
        the
        ordinary course of business;

       

      (e)
        judgment
        liens in respect of judgments that do not constitute an Event of Default
        under
        clause (k) of Article VII;

       

      (f)
        easements,
        zoning restrictions, rights-of-way and similar encumbrances on real property
        imposed by law or arising in the ordinary course of business that do not
        secure
        any monetary obligations and do not interfere with the ordinary conduct of
        business of Holdings or any Subsidiary;

       

      (g)
        any
        interest or title of a lessor under any lease that is limited to the property
        subject to such lease; and

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      14

       

      (h)
        unperfected
        Liens of any vendor on inventory sold by such vendor securing the unpaid
        purchase price of such inventory, to the extent such Liens are stated to
        be
        reserved in such vendor’s sale documents (and not granted by separate agreement
        of the Borrower or any Subsidiary);

       

      provided
        that the
        term “Permitted Encumbrances” shall not include any Lien securing
        Indebtedness.

       

      “Permitted
        Investments”
        means:

       

      (a)
        direct
        obligations of, or obligations the principal of and interest on which are
        unconditionally guaranteed by, the United States of America (or by any agency
        thereof to the extent such obligations are backed by the full faith and credit
        of the United States of America), in each case maturing within one year from
        the
        date of acquisition thereof;

       

      (b)
        investments
        in commercial paper maturing within 270 days from the date of acquisition
        thereof and having, at such date of acquisition, a credit rating from S&P of
        A1 or higher or from Moody’s of P1 or higher;

       

      (c)
        investments
        in certificates of deposit, banker’s acceptances and time deposits maturing
        within 180 days from the date of acquisition thereof issued or guaranteed
        by or placed with, and money market deposit accounts issued or offered by,
        any
        domestic office of any commercial bank organized under the laws of the United
        States of America or any State thereof which has a combined capital and surplus
        and undivided profits of not less than $500,000,000;

       

      (d)
        fully
        collateralized repurchase agreements with a term of not more than 30 days
        for securities described in clause (a) above and entered into with a
        financial institution satisfying the criteria described in clause (c)
        above; 

       

      (e)
        investments
        in money market or mutual funds substantially all the assets of which are
        comprised of securities of the types described in any of clauses (a) through
        (d)
        above; and

       

      (f)
        corporate notes and corporate bonds or municipal securities which includes
        variable rate demand notes and auction rate municipals, assigned a credit
        rating
        from S&P of A2 or higher or from Moody’s of A or higher.

       

      “Permitted
        Vendor Financing”
means
        a
        financing arrangement pursuant to which a Designated Vendor sells to a financial
        institution that is a DVA Creditor (a) accounts receivable owed to such
        Designated Vendor by the Borrower or (b) drafts issued by the Borrower to
        replace such accounts receivable.

       

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

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      15

       

      “Plan”
means
        any employee pension benefit plan (other than a Multiemployer Plan) subject
        to
        the provisions of Title IV of ERISA or Section 412 of the Code or
        Section 302 of ERISA, and in respect of which the Borrower or any ERISA
        Affiliate is (or, if such plan were terminated, would under Section 4069 of
        ERISA be deemed to be) an “employer” as defined in Section 3(5) of
        ERISA.

       

      “Prime
        Rate”
means
        the rate of interest per annum publicly announced from time to time by JPMorgan
        Chase Bank, N.A., as its prime rate in effect at its principal office in
        New
        York City; each change in the Prime Rate shall be effective from and including
        the date such change is publicly announced as being effective.

       

      “Rating”
means
        (a) the rating by the applicable rating agency of the Index Debt or (b) in
        the
        absence of Index Debt, the “corporate rating” or “corporate family rating” or
        the equivalent applicable to Holdings by the applicable rating agency.

       

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

       

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

       

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

       

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

       

      “Revolving
        Commitment”
means,
        with respect to each Lender, the commitment, if any, of such Lender to make
        Revolving Loans and to acquire participations in Letters of Credit and Swingline
        Loans hereunder, expressed as an amount representing the maximum aggregate
        amount of such Lender’s Revolving Exposure hereunder, as such commitment may be
        (a) reduced from time to time pursuant to Section 2.08 and
        (b) reduced or increased from time to time pursuant to assignments by or to
        such Lender pursuant to Section 9.04. The initial amount of each Lender’s
        Revolving Commitment is set forth on Schedule 2.01 or in the Assignment and
        Assumption pursuant to which such Lender shall have assumed its Revolving
        Commitment, as applicable. The initial aggregate amount of the Lenders’
Revolving Commitments is $750,000,000.

       

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

       

      “Revolving
        Lender”
means
        a
        Lender with a Revolving Commitment or, if the Revolving Commitments have
        terminated or expired, a Lender with Revolving Exposure.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      16

       

      “Revolving
        Loan”
means
        a
        Loan made pursuant to Section 2.01.

       

      “Revolving
        Maturity Date”
means
        October 5, 2011.

       

      “Sale
        and Leaseback”
has
        the
        meaning assigned to such term in Section 6.07.

       

      “S&P”
means
        Standard & Poor’s Ratings Group, Inc.

       

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

       

      “subsidiary”
means,
        with respect to any Person (the “parent”)
        at any
        date, any corporation, limited liability company, partnership, association
        or
        other entity the accounts of which would be consolidated with those of the
        parent in the parent’s consolidated financial statements if such financial
        statements were prepared in accordance with GAAP as of such date, as well
        as any
        other corporation, limited liability company, partnership, association or
        other
        entity (a) of which securities or other ownership interests representing
        more than 50% of the equity or more than 50% of the ordinary voting power
        or, in
        the case of a partnership, more than 50% of the general partnership interests
        are, as of such date, owned, controlled or held, or (b) that is, as of such
        date, otherwise Controlled, by the parent or one or more subsidiaries of
        the
        parent or by the parent and one or more subsidiaries of the parent.

       

      “Subsidiary”
means
        any subsidiary of Holdings or the Borrower, as the context
        requires.

       

      “Swap
        Agreement”
means
        any agreement with respect to any swap, forward, future or derivative
        transaction or option or similar agreement involving, or settled by reference
        to, one or more rates, currencies, commodities, equity or debt instruments
        or
        securities, or economic, financial or pricing indices or measures of economic,
        financial or pricing risk or value or any similar transaction or any combination
        of these transactions; provided
        that no
        phantom stock or similar plan providing for payments only on account of services
        provided by current or former directors, officers, employees or consultants
        of
        Holdings, the Borrower or the Subsidiaries shall be a Swap
        Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      17

       

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

       

      “Swingline
        Lender”
means
        JPMorgan Chase Bank, N.A., in its capacity as lender of Swingline Loans
        hereunder or any successor in such capacity pursuant to
        Section 2.04(d).

       

      “Swingline
        Loan”
means
        a
        Loan made pursuant to Section 2.04.

       

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

       

      “Total
        Debt”
means,
        as of the date of determination, an amount equal to all Indebtedness of the
        Borrower and its Subsidiaries outstanding on such date, excluding Indebtedness
        described in clauses (e), (f) and (h) of the definition of “Indebtedness”;
provided
        that any
        letters of credit and letters of guaranty referred to in clause (h) of the
        definition “Indebtedness” shall not be excluded from Total Debt to the extent
        issued to support any other obligations constituting Indebtedness.

       

      “Transactions”
means
        the execution and delivery by each Loan Party of each Loan Document to which
        it
        is a party, the borrowing of Loans, the use of the proceeds thereof and the
        issuance of Letters of Credit hereunder.

       

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

       

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

       

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

       

      SECTION
        1.03.   Terms
        Generally.
        The
        definitions of terms herein shall apply equally to the singular and plural
        forms
        of the terms defined. Whenever the context may require, any pronoun shall
        include the corresponding masculine, feminine and neuter forms. The words
        “include”, “includes” and “including” shall be deemed to be followed by the
        phrase “without limitation”. The word “will” shall be construed to have the same
        meaning and effect as the word “shall”. Unless the context requires otherwise
        (a) any definition of or reference to any agreement, instrument or other
        document herein shall be construed as referring to such agreement, instrument
        or
        other document as from time to time amended, supplemented or otherwise modified
        (subject to any restrictions on such amendments, supplements or modifications
        set forth herein), 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      18

       

      (b) any
        reference herein to any Person shall be construed to include such Person’s
        successors and assigns, (c) the words “herein”, “hereof” and “hereunder”,
        and words of similar import, shall be construed to refer to this Agreement
        in
        its entirety and not to any particular provision hereof, (d) all references
        herein to Articles, Sections, Exhibits and Schedules shall be construed to
        refer
        to Articles and Sections of, and Exhibits and Schedules to, this Agreement
        and
        (e) the words “asset” and “property” shall be construed to have the same
        meaning and effect and to refer to any and all tangible and intangible assets
        and properties, including cash, securities, accounts and contract
        rights.

       

      SECTION
        1.04.   Accounting
        Terms; GAAP; Fiscal Month.
        Except
        as otherwise expressly provided herein, all terms of an accounting or financial
        nature shall be construed in accordance with GAAP, as in effect from time
        to
        time; provided
        that, if
        the Borrower notifies the Administrative Agent that the Borrower requests
        an
        amendment to any provision hereof to eliminate the effect of any change
        occurring after the date hereof in GAAP or in the application thereof on
        the
        operation of such provision (or if the Administrative Agent notifies the
        Borrower that the Required Lenders request an amendment to any provision
        hereof
        for such purpose), regardless of whether any such notice is given before
        or
        after such change in GAAP or in the application thereof, then such provision
        shall be interpreted on the basis of GAAP as in effect and applied immediately
        before such change shall have become effective until such notice shall have
        been
        withdrawn or such provision amended in accordance herewith. Except as otherwise
        provided herein, all references to a fiscal month shall mean any period of
        four
        or five calendar weeks used by the Borrower for recording or reporting its
        interim financial information.

       

      ARTICLE
        II

       

      The
        Credits

       

      SECTION
        2.01.   Commitments.
        Subject
        to the terms and conditions set forth herein, each Lender agrees to make
        Revolving Loans to the Borrower from time to time during the Revolving
        Availability Period in an aggregate principal amount that will not result
        in
        such Lender’s Revolving Exposure exceeding such Lender’s Revolving Commitment.
        Within the foregoing limits and subject to the terms and conditions set forth
        herein, the Borrower may borrow, prepay and reborrow Revolving
        Loans.

       

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

       

      (b)
          Subject
        to Section 2.13, each Revolving Borrowing shall be comprised entirely of
        ABR Loans or Eurodollar Loans as the Borrower may request in accordance
        herewith. Each Swingline Loan shall be an ABR Loan. Each Lender at its option
        may 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      19

       

      make
        any
        Eurodollar Loan by causing any domestic or foreign branch or Affiliate of
        such
        Lender to make such Loan; provided
        that any
        exercise of such option shall not affect the obligation of the Borrower to
        repay
        such Loan in accordance with the terms of this Agreement.

       

      (c)
          At
        the
        commencement of each Interest Period for any Eurodollar Borrowing, such
        Borrowing shall be in an aggregate amount that is an integral multiple of
        $1,000,000 and not less than $5,000,000. At the time that each ABR Revolving
        Borrowing is made, such Borrowing shall be in an aggregate amount that is
        an
        integral multiple of $500,000 and not less than $5,000,000; provided
        that
        (i) an ABR Revolving Borrowing may be in an aggregate amount that is equal
        to the entire unused balance of the total Revolving Commitments and (ii)
        an ABR
        Revolving Borrowing may be in an aggregate amount that is equal to the amount
        that is required to finance the reimbursement of an LC Disbursement as
        contemplated by Section 2.05(e). Each Swingline Loan shall be in an amount
        that
        is an integral multiple of $100,000 and not less than $200,000. Borrowings
        of
        more than one Type may be outstanding at the same time; provided
        that
        there shall not at any time be more than a total of 8 Eurodollar Borrowings
        outstanding.

       

      (d)
          Notwithstanding
        any other provision of this Agreement, the Borrower shall not be entitled
        to
        request, or to elect to convert or continue, any Borrowing if the Interest
        Period requested with respect thereto would end after the Revolving Maturity
        Date.

       

      SECTION
        2.03.   Requests
        for Borrowings.
        To
        request a Revolving Borrowing, the Borrower shall notify the Administrative
        Agent of such request by telephone (a) in the case of a Eurodollar
        Borrowing, not later than 11:00 a.m., New York City time, three Business
        Days before the date of the proposed Borrowing or (b) in the case of an ABR
        Borrowing, not later than 11:00 a.m., New York City time, one Business Day
        before the date of the proposed Borrowing; provided
        that any
        such notice of an ABR Revolving Borrowing to finance the reimbursement of
        an LC
        Disbursement as contemplated by Section 2.05(e) may be given not later than
        10:00 a.m., New York City time, on the date of the proposed Borrowing. Each
        such
        telephonic Borrowing Request shall be irrevocable and shall be confirmed
        promptly by hand delivery or telecopy to the Administrative Agent of a written
        Borrowing Request in a form approved by the Administrative Agent and signed
        by
        the Borrower. Each such telephonic and written Borrowing Request shall specify
        the following information in compliance with Section 2.02:

       

      (i)
          the
        aggregate amount of such Borrowing;

       

      (ii)
          the
        date
        of such Borrowing, which shall be a Business Day;

       

      (iii)
          whether
        such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      20

       

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

       

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

       

      If
        no
        election as to the Type of Borrowing is specified, then the requested Borrowing
        shall be an ABR Borrowing. If no Interest Period is specified with respect
        to
        any requested Eurodollar Borrowing, then the Borrower shall be deemed to
        have
        selected an Interest Period of one month’s duration. Promptly following receipt
        of a Borrowing Request in accordance with this Section, the Administrative
        Agent
        shall advise each Lender of the details thereof and of the amount of such
        Lender’s Loan to be made as part of the requested Borrowing.

       

      SECTION
        2.04.   Swingline
        Loans. (a)
        Subject
        to the terms and conditions set forth herein, the Swingline Lender agrees
        to
        make Swingline Loans to the Borrower from time to time during the Revolving
        Availability Period, in an aggregate principal amount at any time outstanding
        that will not result in (i) the aggregate principal amount of outstanding
        Swingline Loans exceeding $50,000,000 or (ii) the sum of the total
        Revolving Exposures exceeding the total Revolving Commitments; provided
        that the
        Swingline Lender shall not be required to make a Swingline Loan to refinance
        an
        outstanding Swingline Loan. Within the foregoing limits and subject to the
        terms
        and conditions set forth herein, the Borrower may borrow, prepay and reborrow
        Swingline Loans.

       

      (b)
          To
        request a Swingline Loan, the Borrower shall notify the Administrative Agent
        of
        such request by telephone (confirmed by telecopy), not later than 12:00 noon,
        New York City time, on the day of a proposed Swingline Loan. Each such notice
        shall be irrevocable and shall specify the requested date (which shall be
        a
        Business Day) and amount of the requested Swingline Loan. The Administrative
        Agent will promptly advise the Swingline Lender of any such notice received
        from
        the Borrower. The Swingline Lender shall make each Swingline Loan available
        to
        the Borrower by means of a credit to the general deposit account of the Borrower
        with the Swingline Lender (or, in the case of a Swingline Loan made to finance
        the reimbursement of an LC Disbursement as provided in Section 2.05(e), by
        remittance to the Issuing Bank) by 3:00 p.m., New York City time, on the
        requested date of such Swingline Loan.

       

      (c)
          The
        Swingline Lender may by written notice given to the Administrative Agent
        not
        later than 10:00 a.m., New York City time, on any Business Day require the
        Revolving Lenders to acquire participations on such Business Day in all or
        a
        portion of the Swingline Loans outstanding. Such notice shall specify the
        aggregate amount of Swingline Loans in which Revolving Lenders will participate.
        Promptly upon receipt of such notice, the Administrative Agent will give
        notice
        thereof to each Lender, specifying in such notice such Lender’s Applicable
        Percentage of such Swingline Loan or Loans. Each Revolving Lender hereby
        absolutely and unconditionally agrees, upon 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      21

       

      receipt
        of notice as provided above, to pay to the Administrative Agent, for the
        account
        of the Swingline Lender, such Lender’s Applicable Percentage of such Swingline
        Loan or Loans. Each Revolving Lender acknowledges and agrees that its obligation
        to acquire participations in Swingline Loans pursuant to this paragraph is
        absolute and unconditional and shall not be affected by any circumstance
        whatsoever, including the occurrence and continuance of a Default or reduction
        or termination of the Revolving Commitments, and that each such payment shall
        be
        made without any offset, abatement, withholding or reduction whatsoever.
        Each
        Lender shall comply with its obligation under this paragraph by wire transfer
        of
        immediately available funds, in the same manner as provided in Section 2.06
        with respect to Revolving Loans made by such Lender (and Section 2.06 shall
        apply, mutatis mutandis,
        to the
        payment obligations of the Lenders), and the Administrative Agent shall promptly
        pay to the Swingline Lender the amounts so received by it from the Lenders.
        The
        Administrative Agent shall notify the Borrower of any participations in any
        Swingline Loan acquired pursuant to this paragraph, and thereafter payments
        in
        respect of such Swingline Loan shall be made to the Administrative Agent
        and not
        to the Swingline Lender. Any amounts received by the Swingline Lender from
        the
        Borrower (or other party on behalf of the Borrower) in respect of a Swingline
        Loan after receipt by the Swingline Lender of the proceeds of a sale of
        participations therein shall be promptly remitted to the Administrative Agent;
        any such amounts received by the Administrative Agent shall be promptly remitted
        by the Administrative Agent to the Lenders that shall have made their payments
        pursuant to this paragraph and to the Swingline Lender, as their interests
        may
        appear. The purchase of participations in a Swingline Loan pursuant to this
        paragraph shall not relieve the Borrower of any default in the payment
        thereof.

       

      (d)
          Replacement
        of Swingline Lender.
        A
        Swingline Lender may be replaced by any other Lender at any time that there
        are
        no outstanding Swingline Loans by a written agreement among the Administrative
        Agent, the Borrower and successor Swingline Lender. The Administrative Agent
        shall notify the Lenders of any such replacement of the Swingline Lender.
        From
        and after the effective date of any such replacement, (i) the successor
        Swingline Lender shall have all the rights and obligations of the Swingline
        Lender under this Agreement and (ii) references herein to the term “Swingline
        Lender” shall be deemed to refer to such successor Swingline Lender. After the
        replacement of the Swingline Lender pursuant to this clause (d), the replaced
        Swingline Lender shall not be required to make any Swingline Loans.
        Notwithstanding any provisions to the contrary in Section 9.04, at no time
        following the replacement of the Swingline Lender pursuant to this clause
        (d),
        may the Swingline Lender as of such time make an assignment or assignments
        the
        effect of which would be to reduce its Revolving Commitment to
        zero.

       

      SECTION
        2.05.   Letters
        of Credit. (a)
        General.
        Subject
        to the terms and conditions set forth herein, the Borrower may request the
        issuance of Letters of Credit for its own account, in a form reasonably
        acceptable to the Administrative Agent and the applicable Issuing Bank, at
        any
        time and from time to time during the Revolving Availability Period. In the
        event of any inconsistency between the terms and conditions of this Agreement
        and the terms and conditions of any form of letter of credit application
        or
        other agreement submitted by the Borrower to, or entered into by the Borrower
        with, 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      22

       

      an
        Issuing Bank relating to any Letter of Credit, the terms and conditions of
        this
        Agreement shall control.

       

      (b)
          Notice
        of Issuance, Amendment, Renewal, Extension; Certain Conditions.
        To
        request the issuance of a Letter of Credit (or the amendment, renewal or
        extension of an outstanding Letter of Credit), the Borrower shall hand deliver
        or telecopy (or transmit by electronic communication, if arrangements for
        doing
        so have been approved by the applicable Issuing Bank) to the applicable Issuing
        Bank and the Administrative Agent (reasonably in advance of the requested
        date
        of issuance, amendment, renewal or extension) a notice requesting the issuance
        of a Letter of Credit, or identifying the Letter of Credit to be amended,
        renewed or extended, and specifying the date of issuance, amendment, renewal
        or
        extension (which shall be a Business Day), the date on which such Letter
        of
        Credit is to expire (which shall comply with paragraph (c) of this
        Section), the amount of such Letter of Credit, the name and address of the
        beneficiary thereof and such other information as shall be necessary to prepare,
        amend, renew or extend such Letter of Credit. If there is more than one Issuing
        Bank, the Borrower may select among the Issuing Banks in connection with
        the
        issuance of any Letter of Credit. If requested by the Issuing Bank, the Borrower
        also shall submit a letter of credit application on the Issuing Bank’s standard
        form in connection with any request for a Letter of Credit. A Letter of Credit
        shall be issued, amended, renewed or extended only if (and upon issuance,
        amendment, renewal or extension of each Letter of Credit the Borrower shall
        be
        deemed to represent and warrant that), after giving effect to such issuance,
        amendment, renewal or extension (i) the LC Exposure shall not exceed
        $300,000,000 and (ii) the total Revolving Exposures shall not exceed the
        total Revolving Commitments.

       

      (c)
          Expiration
        Date.
        Each
        Letter of Credit shall expire at or prior to the close of business on the
        earlier of (i) the date one year after the date of the issuance of such
        Letter of Credit (or, in the case of any renewal or extension thereof, one
        year
        after such renewal or extension) and (ii) the date that is five Business
        Days prior to the Revolving Maturity Date; provided,
        however,
        that a
        Letter of Credit may, if requested by the Borrower, provide by its terms
        for
        renewal for successive periods of up to one year each (but not beyond the
        Revolving Maturity Date) unless and until the Issuing Bank shall have delivered
        a notice of nonrenewal, in accordance with such Letter of Credit, prior to
        the
        then expiry thereof to the beneficiary of such Letter of Credit.

       

      (d)
          Participations.
        By the
        issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing
        the amount thereof) and without any further action on the part of the Issuing
        Bank or the Lenders, the Issuing Bank hereby grants to each Lender, and each
        Lender hereby acquires from the Issuing Bank, a participation in such Letter
        of
        Credit equal to such Lender’s Applicable Percentage of the aggregate amount
        available to be drawn under such Letter of Credit. In consideration and in
        furtherance of the foregoing, each Lender hereby absolutely and unconditionally
        agrees to pay to the Administrative Agent, for the account of the Issuing
        Bank,
        such Lender’s Applicable Percentage of each LC Disbursement made by the Issuing
        Bank and not reimbursed by the Borrower on the date due as provided in paragraph
        (e) of this Section, or of any reimbursement payment required to be refunded
        to
        the Borrower for any reason. Each 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      23

       

      Lender
        acknowledges and agrees that its obligation to acquire participations pursuant
        to this paragraph in respect of Letters of Credit is absolute and unconditional
        and shall not be affected by any circumstance whatsoever, including any
        amendment, renewal or extension of any Letter of Credit or the occurrence
        and
        continuance of a Default or reduction or termination of the Commitments,
        and
        that each such payment shall be made without any offset, abatement, withholding
        or reduction whatsoever.

       

      (e)
          Reimbursement.
        If the
        Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit,
        the Borrower shall reimburse such LC Disbursement by paying to the
        Administrative Agent an amount equal to such LC Disbursement not later than
        12:00 noon, New York City time, on the date that such LC Disbursement is
        made,
        if the Borrower shall have received notice of such LC Disbursement prior
        to
        10:00 a.m., New York City time, on such date, or, if such notice has not
        been
        received by the Borrower prior to such time on such date, then not later
        than
        12:00 noon, New York City time, on (i) the Business Day that the Borrower
        receives such notice, if such notice is received prior to 10:00 a.m., New
        York
        City time, on the day of the receipt, or (ii) the Business Day immediately
        following the day that the Borrower receives such notice, if such notice
        is not
        received prior to such time on the day of receipt; provided
        that, if
        such LC Disbursement is not less than $100,000, the Borrower may, subject
        to the
        conditions to borrowing set forth herein, request in accordance with Section
        2.03 or 2.04 that such payment be financed with an ABR Revolving Borrowing
        or
        Swingline Loan in an equivalent amount and, to the extent so financed, the
        Borrower’s obligation to make such payment shall be discharged and replaced by
        the resulting ABR Revolving Borrowing or Swingline Loan. If the Borrower
        fails
        to make such payment when due, the Administrative Agent shall notify each
        Lender
        of the applicable LC Disbursement, the payment then due from the Borrower
        in
        respect thereof and such Lender’s Applicable Percentage thereof. Promptly
        following receipt of such notice, each Lender shall pay to the Administrative
        Agent its Applicable Percentage of the payment then due from the Borrower,
        in
        the same manner as provided in Section 2.06 with respect to Revolving Loans
        made by such Lender (and Section 2.06 shall apply, mutatis mutandis,
        to the
        payment obligations of the Lenders), and the Administrative Agent shall promptly
        pay to the Issuing Bank the amounts so received by it from the Lenders. Promptly
        following receipt by the Administrative Agent of any payment from the Borrower
        pursuant to this paragraph, the Administrative Agent shall distribute such
        payment to the Issuing Bank or, to the extent that Lenders have made payments
        pursuant to this paragraph to reimburse the Issuing Bank, then to such Lenders
        and the Issuing Bank as their interests may appear. Any payment made by a
        Lender
        pursuant to this paragraph to reimburse the Issuing Bank for any LC Disbursement
        (other than the funding of ABR Revolving Loans or a Swingline Loan as
        contemplated above) shall not constitute a Loan and shall not relieve the
        Borrower of its obligation to reimburse such LC Disbursement.

       

      (f)
          Obligations
        Absolute.
        The
        Borrower’s obligation to reimburse LC Disbursements as provided in
        paragraph (e) of this Section shall be absolute, unconditional and
        irrevocable, and shall be performed strictly in accordance with the terms
        of
        this Agreement under any and all circumstances whatsoever and irrespective
        of
        (i) any lack of validity or enforceability of any Letter of Credit or this
        Agreement, or any term or provision herein or therein, (ii) any draft or
        other document presented under a 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      24

       

      Letter
        of
        Credit proving to be forged, fraudulent or invalid in any respect or any
        statement therein being untrue or inaccurate in any respect, (iii) payment
        by the Issuing Bank under a Letter of Credit against presentation of a draft
        or
        other document that does not comply with the terms of such Letter of Credit
        or
        (iv) any other event or circumstance whatsoever, whether or not similar to
        any of the foregoing, that might, but for the provisions of this Section,
        constitute a legal or equitable discharge of, or provide a right of setoff
        against, the Borrower’s obligations hereunder. Neither the Administrative Agent,
        the Lenders nor the Issuing Bank, nor any of their Related Parties, shall
        have
        any liability or responsibility by reason of or in connection with the issuance
        or transfer of any Letter of Credit or any payment or failure to make any
        payment thereunder (irrespective of any of the circumstances referred to
        in the
        preceding sentence), or any error, omission, interruption, loss or delay
        in
        transmission or delivery of any draft, notice or other communication under
        or
        relating to any Letter of Credit (including any document required to make
        a
        drawing thereunder), any error in interpretation of technical terms or any
        consequence arising from causes beyond the control of the Issuing Bank;
provided
        that the
        foregoing shall not be construed to excuse the Issuing Bank from liability
        to
        the Borrower to the extent of any direct damages (as opposed to consequential
        damages, claims in respect of which are hereby waived by the Borrower to
        the
        extent permitted by applicable law) suffered by the Borrower that are caused
        by
        the Issuing Bank’s failure to exercise care when determining whether drafts and
        other documents presented under a Letter of Credit comply with the terms
        thereof. The parties hereto expressly agree that, in the absence of gross
        negligence or wilful misconduct on the part of the Issuing Bank (as finally
        determined by a court of competent jurisdiction), the Issuing Bank shall
        be
        deemed to have exercised care in each such determination. In furtherance
        of the
        foregoing and without limiting the generality thereof, the parties agree
        that,
        with respect to documents presented which appear on their face to be in
        substantial compliance with the terms of a Letter of Credit, the Issuing
        Bank
        may, in its sole discretion, either accept and make payment upon such documents
        without responsibility for further investigation, regardless of any notice
        or
        information to the contrary, or refuse to accept and make payment upon such
        documents if such documents are not in strict compliance with the terms of
        such
        Letter of Credit.

       

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

       

      (h)
          Interim
        Interest.
        If the
        Issuing Bank shall make any LC Disbursement, then, unless the Borrower shall
        reimburse such LC Disbursement in full on the date such LC Disbursement is
        made,
        the unpaid amount thereof shall bear interest, for each day from and including
        the date such LC Disbursement is made to but excluding the date that the
        Borrower reimburses such LC Disbursement, at the rate per annum then applicable
        to ABR Revolving Loans; provided
        that, if
        the Borrower fails to reimburse such LC 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      25

       

      Disbursement
        when due pursuant to paragraph (e) of this Section, then Section 2.12(c)
        shall apply. Interest accrued pursuant to this paragraph shall be for the
        account of the Issuing Bank, except that interest accrued on and after the
        date
        of payment by any Lender pursuant to paragraph (e) of this Section to reimburse
        the Issuing Bank shall be for the account of such Lender to the extent of
        such
        payment.

       

      (i)
          Replacement
        of the Issuing Bank.
        An
        Issuing Bank may be replaced at any time by written agreement among the
        Borrower, the Administrative Agent and the successor to such Issuing Bank.
        The
        Administrative Agent shall notify the Lenders of any such replacement of
        an
        Issuing Bank. At the time any such replacement shall become effective, the
        Borrower shall pay all unpaid fees accrued for the account of the replaced
        Issuing Bank pursuant to Section 2.11(c). From and after the effective date
        of
        any such replacement, (i) the successor Issuing Bank shall have all the
        rights and obligations of an Issuing Bank under this Agreement with respect
        to
        Letters of Credit to be issued by it thereafter and (ii) references herein
        to the term “Issuing Bank” shall be deemed to refer to such successor or to any
        previous Issuing Bank, or to such successor and all previous Issuing Banks,
        as
        the context shall require. After the replacement of an Issuing Bank hereunder,
        the replaced Issuing Bank shall remain a party hereto and shall continue
        to have
        all the rights and obligations of an Issuing Bank under this Agreement with
        respect to Letters of Credit issued by it prior to such replacement, but
        shall
        not be required to issue additional Letters of Credit.

       

      (j)
          Cash
        Collateralization.
        If any
        Event of Default shall occur and be continuing, on the Business Day that
        the
        Borrower receives notice from the Administrative Agent or the Required Lenders
        demanding the deposit of cash collateral pursuant to this paragraph, the
        Borrower shall deposit in an account with the Administrative Agent, in the
        name
        of the Administrative Agent and for the benefit of the Lenders, an amount
        in
        cash equal to 105% of the LC Exposure as of such date plus any accrued and
        unpaid interest thereon; provided
        that the
        obligation to deposit such cash collateral shall become effective immediately,
        and such deposit shall become immediately due and payable, without demand
        or
        other notice of any kind, upon the occurrence of any Event of Default with
        respect to the Borrower described in clause (h) or (i) of Article VII.
        Each such deposit shall be held by the Administrative Agent as collateral
        for
        the payment and performance of the obligations of the Borrower under this
        Agreement. The Administrative Agent shall have exclusive dominion and control,
        including the exclusive right of withdrawal, over such account. Other than
        any
        interest earned on the investment of such deposits, which investments shall
        be
        made at the option and sole discretion of the Administrative Agent and at
        the
        Borrower’s risk and expense, such deposits shall not bear interest. Interest or
        profits, if any, on such investments shall accumulate in such account. Moneys
        in
        such account shall be applied by the Administrative Agent to reimburse the
        Issuing Bank for LC Disbursements for which it has not been reimbursed and,
        to
        the extent not so applied, shall be held for the satisfaction of the
        reimbursement obligations of the Borrower for the LC Exposure at such time
        or,
        if the maturity of the Loans has been accelerated (but subject to the consent
        of
        the Required Lenders), be applied to satisfy other obligations of the Borrower
        under this Agreement. If the Borrower is required to provide an amount of
        cash
        collateral hereunder as a result of the occurrence of an Event of Default,
        such
        amount (to the extent not applied as 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      26

       

      aforesaid)
        shall be returned to the Borrower within three Business Days after all Events
        of
        Default have been cured or waived.

       

      (k)
          The
        Issuing Bank shall deliver to the Administrative Agent, on or prior to the
        Effective Date, a schedule identifying all Existing Letters of Credit issued
        by
        it. The Issuing Bank also shall notify the Administrative Agent of any LC
        Disbursement or any expiration, termination or renewal of any Existing Letters
        of Credit issued by it.

       

      SECTION
        2.06.   Funding
        of Borrowings. (a)
        Each
        Lender shall make each Loan to be made by it hereunder on the proposed date
        thereof by wire transfer of immediately available funds by 12:00 noon, New
        York
        City time, to the account of the Administrative Agent most recently designated
        by it for such purpose by notice to the Lenders; provided
        that
        Swingline Loans shall be made as provided in Section 2.04. The
        Administrative Agent will make such Loans available to the Borrower by promptly
        crediting the amounts so received, in like funds, to an account of the Borrower
        designated by the Borrower in the applicable Borrowing Request; provided
        that ABR
        Revolving Loans made to finance the reimbursement of an LC Disbursement as
        provided in Section 2.05(e) shall be remitted by the Administrative Agent
        to the
        Issuing Bank.

       

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

       

      SECTION
        2.07.   Interest
        Elections. (a)
        Each
        Revolving Borrowing initially shall be of the Type specified in the applicable
        Borrowing Request and, in the case of a Eurodollar Borrowing, shall have
        an
        initial Interest Period as specified in such Borrowing Request. Thereafter,
        the
        Borrower may elect to convert such Borrowing to a different Type or to continue
        such Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest
        Periods therefor, all as provided in this Section. The Borrower may elect
        different options with respect to different portions of the affected Borrowing,
        in which case each such portion shall be allocated ratably among the Lenders
        holding the Loans comprising such Borrowing, and the Loans comprising each
        such
        portion shall be considered a separate Borrowing. This Section shall not
        apply
        to Swingline Borrowings, which may not be converted or continued.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      27

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      (e)
          If
        the
        Borrower fails to deliver a timely Interest Election Request with respect
        to a
        Eurodollar Borrowing prior to the end of the Interest Period applicable thereto,
        then, unless such Borrowing is repaid as provided herein, at the end of such
        Interest Period such Borrowing shall be converted to an ABR Borrowing.
        Notwithstanding any contrary provision hereof, if an Event of Default has
        occurred and is continuing and the Administrative Agent, at the request of
        the
        Required Lenders, so notifies the Borrower, then, so long as an Event of
        Default
        is continuing (i) no outstanding Borrowing may be converted to or continued
        as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Borrowing
        shall be converted to an ABR Borrowing at the end of the Interest Period
        applicable thereto.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      28

       

      SECTION
        2.08.   Termination
        and Reduction of Commitments. (a)
        Unless
        previously terminated, the Revolving Commitments shall terminate on the
        Revolving Maturity Date.

       

      (b)
          The
        Borrower may at any time terminate, or from time to time reduce, the Revolving
        Commitments; provided
        that
        (i) each reduction of the Revolving Commitments shall be in an amount that
        is an integral multiple of $1,000,000 and not less than $5,000,000 and
        (ii) the Borrower shall not terminate or reduce the Revolving Commitments
        if, after giving effect to any concurrent prepayment of the Revolving Loans
        in
        accordance with Section 2.10, the sum of the Revolving Exposures would
        exceed the total Revolving Commitments.

       

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

       

      SECTION
        2.09.   Repayment of
        Loans; Evidence of Debt. (a)
        The
        Borrower hereby unconditionally promises to pay (i) to the Administrative
        Agent for the account of each Lender the then unpaid principal amount of
        each
        Revolving Loan of such Lender on the Revolving Maturity Date and (ii)  to
        the Swingline Lender the then unpaid principal amount of each Swingline Loan
        on
        the earlier of the Revolving Maturity Date and the first date after such
        Swingline Loan is made that is the 15th or last day of a calendar month and
        is
        at least two Business Days after such Swingline Loan is made; provided
        that on
        each date that a Revolving Borrowing is made, the Borrower shall repay all
        Swingline Loans then outstanding.

       

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

       

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

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      29

       

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

       

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

       

      SECTION
        2.10.   Prepayment
        of Loans. (a)
        The
        Borrower shall have the right at any time and from time to time to prepay
        any
        Borrowing in whole or in part, subject to the requirements of this
        Section.

       

      (b)
          The
        Borrower shall notify the Administrative Agent (and, in the case of prepayment
        of a Swingline Loan, the Swingline Lender) by telephone (confirmed by telecopy)
        of any prepayment hereunder (i) in the case of prepayment of a Eurodollar
        Borrowing, not later than 11:00 a.m., New York City time, three Business
        Days
        before the date of prepayment, (ii) in the case of prepayment of an ABR
        Revolving Borrowing, not later than 11:00 a.m., New York City time, one Business
        Day before the date of prepayment or (iii) in the case of prepayment of a
        Swingline Loan, not later than 12:00 noon, New York City time, on the date
        of
        prepayment. Each such notice shall be irrevocable and shall specify the
        prepayment date and the principal amount of each Borrowing or portion thereof
        to
        be prepaid; provided
        that, if
        a notice of prepayment is given in connection with a conditional notice of
        termination of the Revolving Commitments as contemplated by Section 2.08,
        then such notice of prepayment may be revoked if such notice of termination
        is
        revoked in accordance with Section 2.08. Promptly following receipt of any
        such notice (other than a notice relating solely to Swingline Loans), the
        Administrative Agent shall advise the Lenders of the contents thereof. Each
        partial prepayment of any Borrowing shall be in an amount that would be
        permitted in the case of an advance of a Borrowing of the same Type as provided
        in Section 2.02. Each prepayment of a Borrowing shall be applied ratably
        to the
        Loans included in the prepaid Borrowing. Prepayments shall be accompanied
        by
        accrued interest to the extent required by Section 2.12.

       

      SECTION
        2.11.   Fees. (a)
        The
        Borrower agrees to pay to the Administrative Agent for the account of each
        Lender a commitment fee, which shall accrue at the Applicable Rate on the
        average daily unused amount of the Revolving Commitment of such Lender during
        the period from and including the Effective Date to but excluding the date
        on
        which the Revolving Commitments terminate. Accrued 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      30

       

      commitment
        fees shall be payable in arrears on the last day of March, June, September
        and
        December of each year and on the date on which the Revolving Commitments
        terminate, commencing on the first such date to occur after the Effective
        Date.
        All commitment fees shall be computed on the basis of a year of 360 days
        and
        shall be payable for the actual number of days elapsed (including the first
        day
        but excluding the last day). For purposes of computing commitment fees, a
        Revolving Commitment of a Lender shall be deemed to be used to the extent
        of the
        outstanding Revolving Loans and LC Exposure of such Lender (and the Swingline
        Exposure of such Lender shall be disregarded for such purpose).

       

      (b)
          The
        Borrower agrees to pay (i) to the Administrative Agent for the account of
        each Lender a participation fee with respect to its participations in Letters
        of
        Credit, which shall accrue at the same Applicable Rate as interest on Eurodollar
        Revolving Loans on the average daily amount of such Lender’s LC Exposure
        (excluding any portion thereof attributable to unreimbursed LC Disbursements)
        during the period from and including the Effective Date to but excluding
        the
        later of the date on which such Lender’s Revolving Commitment terminates and the
        date on which such Lender ceases to have any LC Exposure, and (ii) to each
        Issuing Bank a fronting fee, which shall accrue at the rate of 1/8 of 1%
        per
        annum on the average daily amount of the LC Exposure attributable to Letters
        of
        Credit issued by such Issuing Bank (excluding any portion thereof attributable
        to unreimbursed LC Disbursements) during the period from and including the
        Effective Date to but excluding the later of the date of termination of the
        Revolving Commitments and the date on which there ceases to be any such LC
        Exposure, as well as such Issuing Bank’s standard fees with respect to the
        issuance, amendment, renewal or extension of any Letter of Credit or processing
        of drawings thereunder. Participation fees and fronting fees accrued through
        and
        including the last day of March, June, September and December of each year
        shall
        be payable on the third Business Day following such last day, commencing
        on the
        first such date to occur after the Effective Date; provided
        that all
        such fees shall be payable on the date on which the Revolving Commitments
        terminate and any such fees accruing after the date on which the Revolving
        Commitments terminate shall be payable on demand. Any other fees payable
        to an
        Issuing Bank pursuant to this paragraph shall be payable within 10 days after
        demand. All participation fees and fronting fees shall be computed on the
        basis
        of a year of 360 days and shall be payable for the actual number of days
        elapsed
        (including the first day but excluding the last day).

       

      (c)
          The
        Borrower agrees to pay to the Administrative Agent, for its own account,
        fees
        payable in the amounts and at the times separately agreed upon between the
        Borrower and the Administrative Agent.

       

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

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      31

       

      SECTION
        2.12.   Interest. (a)
        The
        Loans
        comprising each ABR Borrowing (including each Swingline Loan) shall bear
        interest at the Alternate Base Rate plus the Applicable Rate.

       

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

       

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

       

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

       

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

       

      SECTION
        2.13.   Alternate
        Rate of Interest.
        If prior
        to the commencement of any Interest Period for a Eurodollar
        Borrowing:

       

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

       

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

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      32

       

      then
        the
        Administrative Agent shall give notice thereof to the Borrower and the Lenders
        by telephone or telecopy as promptly as practicable thereafter and, until
        the
        Administrative Agent notifies the Borrower and the Lenders that the
        circumstances giving rise to such notice no longer exist, (i) any Interest
        Election Request that requests the conversion of any Borrowing to, or
        continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective
        and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such
        Borrowing shall be made as an ABR Borrowing.

       

      SECTION
        2.14.   Increased
        Costs. (a)
        If
        any
        Change in Law shall:

       

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

       

      (ii)
          impose
        on
        any Lender or any Issuing Bank or the London interbank market any other
        condition affecting this Agreement or Eurodollar 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 Loan (or of maintaining its obligation
        to
        make any such Loan) or to increase the cost to such Lender or Issuing Bank
        of
        participating in, issuing or maintaining any Letter of Credit or to reduce
        the
        amount of any sum received or receivable by such Lender or Issuing Bank
        hereunder (whether of principal, interest or otherwise), then the Borrower
        will
        pay to such Lender or Issuing Bank, as the case may be, such additional amount
        or amounts as will compensate such Lender or Issuing Bank, as the case may
        be,
        for such additional costs incurred or reduction suffered.

       

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

       

      (c)
          A
        certificate of a Lender or an Issuing Bank setting forth the amount or amounts
        necessary to compensate such Lender or Issuing Bank or its holding company,
        as
        the case may be, as specified in paragraph (a) or (b) of this Section, and,
        in reasonable detail, the basis therefor, shall be delivered to the Borrower
        and
        shall be 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      33

       

      conclusive
        absent manifest error. The Borrower shall pay such Lender or Issuing Bank,
        as
        the case may be, the amount shown as due on any such certificate within
        10 days after receipt thereof.

       

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

       

      SECTION
        2.15.   Break
        Funding Payments.
        In the
        event of (a) the payment of any principal of any Eurodollar Loan other than
        on the last day of an Interest Period applicable thereto (including as a
        result
        of an Event of Default), (b) the conversion of any Eurodollar Loan other
        than on the last day of the Interest Period applicable thereto, (c) the
        failure to borrow, convert, continue or prepay any Revolving Loan on the
        date
        specified in any notice delivered pursuant hereto (regardless of whether
        such
        notice may be revoked under Section 2.10(b) and is revoked in accordance
        therewith), or (d) the assignment of any Eurodollar Loan other than on the
        last day of the Interest Period applicable thereto as a result of a request
        by
        the Borrower pursuant to Section 2.18, then, in any such event, the
        Borrower shall compensate each Lender for the loss, cost and expense
        attributable to such event. In the case of a Eurodollar Loan, such loss,
        cost or
        expense to any Lender shall be deemed to include an amount determined by
        such
        Lender to be the excess, if any, of (i) the amount of interest which would
        have accrued on the principal amount of such Loan had such event not occurred,
        at the Adjusted LIBO Rate that would have been applicable to such Loan, for
        the
        period from the date of such event to the last day of the then current Interest
        Period therefor (or, in the case of a failure to borrow, convert or continue,
        for the period that would have been the Interest Period for such Loan), over
        (ii) the amount of interest which would accrue on such principal amount for
        such period at the interest rate which such Lender would bid were it to bid,
        at
        the commencement of such period, for dollar deposits of a comparable amount
        and
        period from other banks in the Eurodollar market. A certificate of any Lender
        setting forth any amount or amounts that such Lender is entitled to receive
        pursuant to this Section, and, in reasonable detail, the basis therefor,
        shall
        be delivered to the Borrower and shall be conclusive absent manifest error.
        The
        Borrower shall pay such Lender the amount shown as due on any such certificate
        within 10 days after receipt thereof.

       

      SECTION
        2.16.   Taxes. (a)
        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
        deduction for any Indemnified Taxes or Other Taxes; provided
        that if
        the Borrower shall be required to deduct any Indemnified Taxes or Other Taxes
        from such payments, then (i) the sum payable shall be increased as
        necessary so 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      34

       

      that
        after making all required deductions (including deductions applicable to
        additional sums payable under this Section) the Administrative Agent, Lender
        or
        Issuing 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 pay the full amount
        deducted to the relevant Governmental Authority in accordance with applicable
        law.

       

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

       

      (c)
          The
        Borrower shall indemnify the Administrative Agent, each Lender and each Issuing
        Bank, within 10 days after written demand therefor, for the full amount of
        any
        Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender
        or such Issuing Bank, as the case may be, on or with respect to any payment
        by
        or on account of any obligation of the Borrower hereunder or under any other
        Loan Document (including Indemnified Taxes or Other Taxes imposed or asserted
        on
        or attributable to amounts payable under this Section) and any penalties,
        interest and 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, and setting forth, in reasonable
        detail, the basis therefor, delivered to the Borrower by a Lender or an Issuing
        Bank, or by the Administrative Agent on its own behalf or on behalf of a
        Lender
        or an Issuing Bank, shall be conclusive absent manifest error.

       

      (d)
          As
        soon
        as practicable after any payment of Indemnified Taxes or Other Taxes by 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)
          Any
        Foreign Lender that is entitled to an exemption from or reduction of withholding
        tax under the Code, the law of the jurisdiction in which the Borrower is
        located, or any treaty to which such jurisdiction is a party, with respect
        to
        payments under this Agreement shall deliver to the Borrower (with a copy
        to the
        Administrative Agent), at the time or times prescribed by applicable law,
        such
        properly completed and executed documentation prescribed by applicable law
        or
        reasonably requested by the Borrower as will permit such payments to be made
        without withholding or at a reduced rate. Any Foreign Lender which is not
        a
“bank” within the meaning of Section 881(c)(3)(A) of the Code and intends
        to claim exemption from U.S. Federal withholding tax under Section 871(h)
        or 881(c) of the Code with respect to payments of “portfolio interest” shall
        deliver to the Borrower (with a copy for the Administrative Agent) a Form
        W-8BEN, or any subsequent versions thereof or successors thereto (and, if
        such
        Foreign Lender delivers a Form W-8BEN, a certificate representing that such
        Foreign Lender is not a bank for purposes of Section 881(c) of the Code,
        is not
        a ten-percent shareholder (within the meaning of Section 871(h)(3)(B) of
        the
        Code) of the Borrower and is not a controlled foreign corporation related
        to the
        Borrower (within the meaning of Section 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      35

       

      864(d)(4)
        of the Code)), properly completed and duly executed by such Foreign Lender
        claiming complete exemption from, or a reduced rate of, U.S. Federal withholding
        tax on payments of interest by the Borrower under this Agreement and the
        other
        Loan Documents.

       

      (f)
          If
        the
        Administrative Agent or a Lender 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 2.16, it shall pay over such
        refund to the Borrower (but only to the extent of indemnity payments made,
        or
        additional amounts paid, by the Borrower under this Section 2.16 with
        respect to the Taxes or Other Taxes giving rise to such refund), net of all
        out-of-pocket expenses of the Administrative Agent or such Lender and 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 or such Lender, 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 or such Lender in the event the Administrative Agent
        or
        such Lender is required to repay such refund to such Governmental Authority.
        Nothing contained in this Section 2.16(f) shall require the Administrative
        Agent
        or any Lender to make available its tax returns (or any other information
        relating to its taxes which it deems confidential) to the Borrower or any
        other
        Person.

       

      SECTION
        2.17.   Payments
        Generally; Pro Rata Treatment; Sharing of Set-offs. (a)
        The
        Borrower shall make each payment required to be made by it hereunder or under
        any other Loan Document (whether of principal, interest, fees or reimbursement
        of LC Disbursements, or of amounts payable under Section 2.14, 2.15, 2.16,
        or otherwise) prior to 12:00 noon, New York City time, on the date when due,
        in
        immediately available funds, without set-off or counterclaim. Any amounts
        received after such time on any date may, in the discretion of the
        Administrative Agent, be deemed to have been received on the next succeeding
        Business Day for purposes of calculating interest thereon. All such payments
        shall be made to the Administrative Agent at its offices at 270 Park Avenue,
        New
        York, New York, except payments to be made directly to an Issuing Bank or
        the
        Swingline Lender as expressly provided herein and except that payments pursuant
        to Sections 2.14, 2.15, 2.16 and 9.03 shall be made directly to the Persons
        entitled thereto and payments pursuant to other Loan Documents shall be made
        to
        the Persons specified therein. The Administrative Agent shall distribute
        any
        such payments received by it for the account of any other Person to the
        appropriate recipient promptly following receipt thereof. If any payment
        under
        any Loan Document shall be due on a day that is not a Business Day, the date
        for
        payment shall be extended to the next succeeding Business Day, and, in the
        case
        of any payment accruing interest, interest thereon shall be payable for the
        period of such extension. All payments under each Loan Document shall be
        made in
        dollars.

       

      (b)
          If
        at any
        time insufficient funds are received by and available to the Administrative
        Agent to pay fully all amounts of principal, unreimbursed LC Disbursements,
        interest and fees then due hereunder, such funds shall be applied
        (i) first, 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      36

       

      towards
        payment of interest and fees then due hereunder, ratably among the parties
        entitled thereto in accordance with the amounts of interest and fees then
        due to
        such parties, and (ii) second, towards payment of principal and
        unreimbursed LC Disbursements then due hereunder, ratably among the parties
        entitled thereto in accordance with the amounts of principal and unreimbursed
        LC
        Disbursements then due to such parties.

       

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

       

      (d)
          Unless
        the Administrative Agent shall have received notice from the Borrower prior
        to
        the date on which any payment is due to the Administrative Agent for the
        account
        of the Lenders or an Issuing 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 applicable Issuing 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 applicable Issuing Bank, as
        the
        case may be, severally agrees to repay to the Administrative Agent forthwith
        on
        demand the amount so distributed to such Lender or Issuing Bank with interest
        thereon, for each day from and including the date such amount is distributed
        to
        it to but excluding the date of payment to the Administrative Agent, at the
        greater of the Federal Funds Effective Rate and a rate determined by the
        Administrative Agent in accordance with banking industry rules on interbank
        compensation.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      37

       

      (e)
          If
        any
        Lender shall fail to make any payment required to be made by it pursuant
        to
        Section 2.04(c), 2.05(d) or (e), 2.06(b), 2.17(d) or 9.03(c), then the
        Administrative Agent may, in its discretion (notwithstanding any contrary
        provision hereof), apply any amounts thereafter received by the Administrative
        Agent for the account of such Lender to satisfy such Lender’s obligations under
        such Sections until all such unsatisfied obligations are fully
        paid.

       

      SECTION
        2.18.   Mitigation
        Obligations; Replacement of Lenders. (a)
        If
        any
        Lender requests compensation under Section 2.14, or if 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 2.16, 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, such
        designation or assignment (i) would eliminate or reduce amounts payable
        pursuant to Section 2.14 or 2.16, as the case may be, in the future and
        (ii) in the reasonable judgment of such Lender, would not subject such
        Lender to any unreimbursed cost or expense and would not otherwise be
        disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable
        costs and expenses incurred by any Lender in connection with any such
        designation or assignment.

       

      (b)
          If
        any
        Lender requests compensation under Section 2.14, or if 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 2.16, or if any
        Lender defaults in its obligation to fund Loans hereunder, then the Borrower
        may, at its sole expense and effort, upon notice to such Lender and the
        Administrative Agent, require such Lender to assign and delegate, without
        recourse (in accordance with and subject to the restrictions contained in
        Section 9.04), all its interests, rights and obligations under this
        Agreement to an assignee that shall assume such obligations (which assignee
        may
        be another Lender, if a Lender accepts such assignment); provided
        that
        (i) the Borrower shall have received the prior written consent of the
        Administrative Agent (and, if a Revolving Commitment is being assigned, the
        Issuing Bank and Swingline Lender), which consent shall not unreasonably
        be
        withheld, (ii) such Lender shall have received payment of an amount equal
        to the outstanding principal of its Loans and participations in LC Disbursements
        and Swingline Loans, accrued interest thereon, accrued fees and all other
        amounts payable to it hereunder, from the assignee (to the extent of such
        outstanding principal and accrued interest and fees) or the Borrower (in
        the
        case of all other amounts) and (iii) in the case of any such assignment
        resulting from a claim for compensation under Section 2.14 or payments
        required to be made pursuant to Section 2.16, such assignment will result
        in a material reduction in such compensation or payments. A Lender shall
        not be
        required to make any such assignment and delegation if, prior thereto, as
        a
        result of a waiver by such Lender or otherwise, the circumstances entitling
        the
        Borrower to require such assignment and delegation cease to apply.

       

      SECTION
        2.19.   Increase
        in Revolving Commitments. (a)
        The
        Borrower may, by written notice to the Administrative Agent (which shall
        promptly deliver a copy to each of the Lenders), request that the total
        Revolving Commitments be increased; provided
        that the
        total Revolving Commitments shall not be increased by more than 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      38

       

      $250,000,000
        during the term of this Agreement pursuant to this Section. Such notice shall
        set forth the amount of the requested increase in the total Revolving
        Commitments and the date on which such increase is requested to become effective
        (which shall be not less than 10 Business Days or more than 60 days
        after the date of such notice), and shall offer each Lender the opportunity
        to
        increase its Revolving Commitment by its Applicable Percentage of the proposed
        increased amount. Each Lender shall, by notice to the Borrower and the
        Administrative Agent given not more than 10 days after the date of the
        Borrower’s notice, either agree to increase its Revolving Commitment by all or a
        portion of the offered amount (each Lender so agreeing being an “Increasing
        Lender”)
        or
        decline to increase its Revolving Commitment (and any Lender that does not
        deliver such a notice within such period of 10 days shall be deemed to have
        declined to increase its Revolving Commitment). In the event that, on the
        10th
        day after the Borrower shall have delivered a notice pursuant to the first
        sentence of this paragraph, the Lenders shall have agreed pursuant to the
        preceding sentence to increase their Commitments by an aggregate amount less
        than the increase in the total Revolving Commitments requested by the Borrower,
        the Borrower may arrange for one or more banks or other financial institutions
        (any such bank or other financial institution being called an “Augmenting
        Lender”),
        which
        may include any Lender, to extend Revolving Commitments or increase their
        existing Revolving Commitments in an aggregate amount equal to the unsubscribed
        amount; provided that each Augmenting Lender, if not already a Lender hereunder,
        shall be subject to the approval of the Administrative Agent, each Issuing
        Bank
        and the Swingline Lender (such approvals not to be unreasonably withheld),
        and
        the Borrower and each Augmenting Lender shall execute all such documentation
        as
        the Administrative Agent shall reasonably specify to evidence its Revolving
        Commitment and/or its status as a Lender hereunder. Any increase in the total
        Revolving Commitments may be made in an amount which is less than the increase
        requested by the Borrower if the Borrower is unable to arrange for, or chooses
        not to arrange for, Augmenting Lenders.

       

      (b)
          On
        the
        effective date (the “Increase
        Effective Date”)
        of any
        increase in the total Revolving Commitments pursuant to this Section 2.20
        (the “Commitment
        Increase”),
        if
        any Revolving Loans are outstanding, then (unless the Commitment Increase
        is
        being effected by an increase in each Lender’s Revolving Commitment ratably in
        accordance with their Applicable Percentage) the Borrower (i) shall prepay
        all Revolving Loans then outstanding (including all accrued but unpaid interest
        thereon) and (ii) may, at its option, fund such prepayment by
        simultaneously borrowing Revolving Loans of the Types and for the Interest
        Periods specified in a Borrowing Request delivered pursuant to
        Section 2.03, which Revolving Loans shall be made by the Lenders (including
        the Increasing Lenders and the Augmenting Lenders, if any) ratably in accordance
        with their respective Revolving Commitments (calculated after giving effect
        to
        the Commitment Increase). The payments made pursuant to clause (i) above in
        respect of each Eurodollar Loan shall be subject to
        Section 2.15.

       

      (c)
          Increases
        and new Commitments created pursuant to this Section 2.19 shall become
        effective on the date specified in the notice delivered by the Borrower pursuant
        to the first sentence of paragraph (a) above; provided
        that the
        Borrower may, with the consent of the Administrative Agent (such consent
        not to
        be unreasonably withheld), extend such date by up to 30 days by delivering
        written notice to the 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      39

       

      Administrative
        Agent no less than two Business Days prior to the date specified in the notice
        delivered by the Borrower pursuant to the first sentence of paragraph (a)
        above.

       

      (d)
          Notwithstanding
        the foregoing, no increase in the total Revolving Commitments (or in the
        Revolving Commitment of any Lender) or addition of an Augmenting Lender shall
        become effective under this Section unless (i) on the date of such
        increase, the conditions set forth in paragraphs (a) and (b) of
        Section 4.02 shall be satisfied and the Administrative Agent shall have
        received a certificate to that effect dated such date and executed by a
        Financial Officer of the Borrower, and (ii) the Administrative Agent shall
        have received (with sufficient copies for each of the Lenders) documents
        consistent with those delivered on the Effective Date under clauses (b) and
        (c) of Section 4.01.

       

      ARTICLE
        III

       

      Representations
        and Warranties

       

      Each
        of
        Holdings and the Borrower represents and warrants to the Lenders on the
        Effective Date and on each date thereafter as required hereunder
        that:

       

      SECTION
        3.01.   Organization;
        Powers.
        Each of
        Holdings, the Borrower and their Subsidiaries is duly organized, validly
        existing and in good standing under the laws of the jurisdiction of its
        organization, has all requisite power and authority to carry on its business
        as
        now conducted and, except where the failure to do so, individually or in
        the
        aggregate, would not reasonably be expected to result in a Material Adverse
        Effect, is qualified to do business in, and is in good standing in, every
        jurisdiction where such qualification is required.

       

      SECTION
        3.02.   Authorization;
        Enforceability.  The
        Transactions to be entered into by each Loan Party are within such Loan Party’s
        corporate powers and have been duly authorized by all necessary corporate
        and,
        if required, stockholder action. This Agreement has been duly executed and
        delivered by each Loan Party and constitutes, and each other Loan Document
        to
        which either Loan Party is to be a party, when executed and delivered by
        such
        Loan Party, will constitute, a legal, valid and binding obligation of such
        Loan
        Party (as the case may be), enforceable in accordance with its terms, subject
        to
        applicable bankruptcy, insolvency, reorganization, moratorium or other laws
        affecting creditors’ rights generally and subject to general principles of
        equity, regardless of whether considered in a proceeding in equity or at
        law.

       

      SECTION
        3.03.   Governmental
        Approvals; No Conflicts.  The
        Transactions (a) do not require any consent or approval of, registration or
        filing with, or any other action by, any Governmental Authority, except
        (i) such as have been obtained or made and are in full force and effect or
        (ii) where the failure to obtain such consent or approval or make such
        registration or filing, individually or in the aggregate, would not reasonably
        be expected to result in a Material Adverse Effect, (b) will not violate
        any applicable law or regulation or the charter, by-laws or other organizational
        documents of Holdings, the Borrower or any of their Subsidiaries or any order
        of
        any Governmental 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      40

       

      Authority,
        (c) will not violate or result in a default under any material indenture,
        agreement or other instrument binding upon Holdings, the Borrower or any
        of
        their Subsidiaries or their assets, or give rise to a right thereunder to
        require any payment to be made by Holdings, the Borrower or any of their
        Subsidiaries (other than under the Existing Credit Agreement), and (d) will
        not result in the creation or imposition of any Lien on any asset of Holdings,
        the Borrower or any of their Subsidiaries.

       

      SECTION
        3.04.   Financial
        Condition; No Material Adverse Change. (a)
        Holdings
        has heretofore furnished to the Lenders its consolidated balance sheet and
        statements of income, stockholders equity and cash flows (i) as of and for
        the fiscal year ended December 31, 2005, reported on by Deloitte & Touche
        LLP, independent public accountants, and (ii) as of and for the fiscal
        quarter and the portion of the fiscal year ended July 15, 2006, certified
        by one
        of its Financial Officers. Such financial statements present fairly, in all
        material respects, the financial position and results of operations and cash
        flows of Holdings and its consolidated subsidiaries as of such dates and
        for
        such periods in accordance with GAAP, subject to customary year-end audit
        adjustments and the absence of footnotes in the case of the statements referred
        to in clause (ii) above.

       

      (b)
          Except
        as
        disclosed in the financial statements referred to above or the notes thereto
        and
        except for the Disclosed Matters, after giving effect to the Transactions,
        none
        of Holdings, the Borrower or their Subsidiaries has, as of the Effective
        Date,
        any material contingent liabilities.

       

      (c)
          Since
        December 31, 2005, there has been no material adverse change in the business,
        assets, operations, prospects or condition, financial or otherwise, of Holdings,
        the Borrower and their Subsidiaries, taken as a whole.

       

      SECTION
        3.05.   Properties. (a)
        Each
        of
        Holdings, the Borrower and their Subsidiaries has good title to, or valid
        leasehold interests in, all its real and personal property material to its
        business, except for minor defects in title that do not interfere with its
        ability to conduct its business as currently conducted or to utilize such
        properties for their intended purposes.

       

      (b)
          Each
        of
        Holdings, the Borrower and their Subsidiaries owns, or is licensed to use,
        all
        trademarks, trade names, copyrights, patents and other intellectual property
        material to its business, and the use thereof by Holdings, the Borrower and
        their Subsidiaries does not infringe upon the rights of any other Person,
        except
        for any such infringements that, individually or in the aggregate, would
        not
        reasonably be expected to result in a Material Adverse Effect.

       

      SECTION
        3.06.   Litigation
        and Environmental Matters. (a)
        There
        are
        no actions, suits or proceedings by or before any arbitrator or Governmental
        Authority pending against or, to the knowledge of Holdings or the Borrower,
        threatened against or affecting Holdings, the Borrower or any of their
        Subsidiaries (i) as to which there is a reasonable possibility of an
        adverse determination and that, if adversely determined, would reasonably
        be
        expected, individually or in the aggregate, to result in a Material

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      41

       

      Adverse
        Effect (other than the Disclosed Matters) or (ii) that involve any of the
        Loan Documents or the Transactions.

       

      (b)
          Except
        for the Disclosed Matters and except with respect to any other matters that,
        individually or in the aggregate, would not reasonably be expected to result
        in
        a Material Adverse Effect, neither Holdings, the Borrower nor any of their
        Subsidiaries (i) has failed to comply with any Environmental Law or to
        obtain, maintain or comply with any permit, license or other approval required
        under any Environmental Law, (ii) has become subject to any Environmental
        Liability, (iii) has received notice of any claim with respect to any
        Environmental Liability or (iv) knows of any basis for any Environmental
        Liability.

       

      (c)
          Since
        December 31, 2005, there has been no change in the status of the Disclosed
        Matters that, individually or in the aggregate, has resulted in, or materially
        increased the likelihood of, a Material Adverse Effect.

       

      SECTION
        3.07.   Compliance
        with Laws and Agreements.
        Each of
        Holdings, the Borrower and their Subsidiaries is in compliance with all laws,
        regulations and orders of any Governmental Authority applicable to it or
        its
        property and all indentures, agreements and other instruments binding upon
        it or
        its property, except where the failure to do so, individually or in the
        aggregate, would not reasonably be expected to result in a Material Adverse
        Effect. No Default has occurred and is continuing.

       

      SECTION
        3.08.   Investment
        Company Status.
        Neither
        Holdings, the Borrower nor any of their Subsidiaries is an “investment company”
as defined in, or subject to regulation under, the Investment Company Act
        of
        1940.

       

      SECTION
        3.09.   Taxes.
        Each of
        Holdings, the Borrower and their Subsidiaries has timely filed or caused
        to be
        filed all Tax returns and reports required to have been filed and has paid
        or
        caused to be paid all Taxes required to have been paid by it, except
        (a) Taxes that are being contested in good faith by appropriate proceedings
        and for which Holdings, the Borrower or such Subsidiary, as applicable, has
        set
        aside on its books adequate reserves or (b) to the extent that the failure
        to do so would not reasonably be expected to result in a Material Adverse
        Effect.

       

      SECTION
        3.10.   ERISA.
        No ERISA
        Event has occurred or is reasonably expected to occur that, when taken together
        with all other such ERISA Events for which liability is reasonably expected
        to
        occur, could reasonably be expected to result in a Material Adverse Effect.
        The
        present value of all accumulated benefit obligations under each Plan (based
        on
        the assumptions used for purposes of Statement of Financial Accounting Standards
        No. 87) did not, as of the date of the most recent financial statements
        reflecting such amounts, exceed by more than $1,000,000 the fair market value
        of
        the assets of such Plan, and the present value of all accumulated benefit
        obligations of all underfunded Plans (based on the assumptions used for purposes
        of Statement of Financial Accounting Standards No. 87) did not, as of the
        date of the most 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      42

       

      recent
        financial statements reflecting such amounts, exceed by more than $1,000,000
        the
        fair market value of the assets of all such underfunded Plans.

       

      SECTION
        3.11.   Disclosure.
        Holdings
        and the Borrower have disclosed to the Lenders all agreements, instruments
        and
        corporate or other restrictions to which Holdings, the Borrower or any of
        their
        Subsidiaries is subject, and all other matters known to any of them, that,
        individually or in the aggregate, would reasonably be expected to result
        in a
        Material Adverse Effect. Neither the Information Memorandum nor any of the
        other
        reports, financial statements, certificates or other information furnished
        by or
        on behalf of either Loan Party to the Administrative Agent or any Lender
        in
        connection with the negotiation of this Agreement or any other Loan Document
        or
        delivered hereunder or thereunder (as modified or supplemented by other
        information so furnished) contains any material misstatement of fact or omits
        to
        state any material fact necessary to make the statements therein, in the
        light
        of the circumstances under which they were made, not misleading; provided
        that,
        with respect to projected financial information, Holdings and the Borrower
        represent only that such information was prepared in good faith based upon
        assumptions believed to be reasonable at the time.

       

      SECTION
        3.12.   Subsidiaries.
        Holdings
        does not have any Subsidiaries other than the Borrower and the Borrower’s
        Subsidiaries. Schedule 3.12 sets forth the name of, and the ownership
        interest of the Borrower in, each Subsidiary of the Borrower as of the Effective
        Date.

       

      SECTION
        3.13.   Insurance.
        Schedule
        3.13 sets forth a description of all insurance maintained by or on behalf
        of
        Holdings, the Borrower and their Subsidiaries as of the Effective Date. As
        of
        the Effective Date, all premiums in respect of such insurance have been
        paid.

       

      SECTION
        3.14.   Solvency.
        Immediately after the consummation of the Transactions to occur on the Effective
        Date and immediately following the making of each Loan made on the Effective
        Date, (a) the fair value of the assets of each Loan Party, at a fair
        valuation, will exceed its debts and liabilities, subordinated, contingent
        or
        otherwise; (b) the present fair saleable value of the property of each Loan
        Party will be greater than the amount that will be required to pay the probable
        liability of its debts and other liabilities, subordinated, contingent or
        otherwise, as such debts and other liabilities become absolute and matured;
        (c) each Loan Party will be able to pay its debts and liabilities,
        subordinated, contingent or otherwise, as such debts and liabilities become
        absolute and matured; and (d) each Loan Party will not have unreasonably
        small capital with which to conduct the business in which it is engaged as
        such
        business is now conducted and is proposed to be conducted following the
        Effective Date.

       

      ARTICLE
        IV

       

      Conditions

       

      SECTION
        4.01.   Effective
        Date.
        The
        obligations of the Lenders to make Loans and of the Issuing Bank to issue
        Letters of Credit hereunder shall not become 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      43

       

      effective
        until the date on which each of the following conditions is satisfied (or
        waived
        in accordance with Section 9.02):

       

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

       

      The
        Administrative Agent shall have received favorable written opinions (addressed
        to the Administrative Agent and the Lenders and dated the Effective Date)
        of
        Bingham McCutchen LLP and LeClair Ryan, counsel for the Loan Parties,
        substantially in the form of Exhibits C-1 and C-2, respectively, and covering
        such other matters relating to the Loan Parties, the Loan Documents or the
        Transactions as the Required Lenders shall reasonably request. Holdings and
        the
        Borrower hereby request such counsel to deliver such opinions.

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

       

      (c)
          The
        Administrative Agent shall have received evidence reasonably satisfactory
        to it
        that, prior to or on the Effective Date, all commitments under the existing
        Credit Agreement shall be terminated and all loans and other amounts accrued
        and
        owing thereunder shall be paid.

       

      (d)
          The
        Administrative Agent shall have received, from the agents and/or lenders
        under
        the Existing Credit Agreement, all releases, terminations and other documents
        necessary to release all Liens securing obligations thereunder, in form suitable
        for filing or recording.

       

      (e)
          The
        Administrative Agent shall have received such documents and other information
        as
        the Administrative Agent and the Lenders may reasonably request to satisfy
        the
        requirements of bank regulatory authorities under applicable “know your
        customer” and anti-money laundering rules and regulations, including the USA
        Patriot Act.

       

      (f)
          The
        conditions set forth in paragraphs (a) and (b) of Section 4.02 shall be
        satisfied and the Administrative Agent shall have received a certificate
        to such
        effect, dated the Effective Date and signed by the President, a Vice President
        or a Financial Officer of the Borrower.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      44

       

      (g)
          The
        Administrative Agent shall have received all fees and other amounts due and
        payable by the Borrower on or prior to the Effective Date, including, to
        the
        extent invoiced, reimbursement or payment of all out-of-pocket expenses required
        to be reimbursed or paid by the Borrower hereunder.

       

      (h)
          The
        Administrative Agent shall have received evidence reasonably satisfactory
        to it
        that the insurance required by Section 5.06 is in effect.

       

      (i)
          The
        Administrative Agent shall notify the Borrower and the Lenders of the Effective
        Date, and such notice shall be conclusive and binding. Notwithstanding the
        foregoing, the obligations of the Lenders to make Loans and of the Issuing
        Bank
        to issue Letters of Credit hereunder shall not become effective unless each
        of
        the foregoing conditions is satisfied (or waived pursuant to Section 9.02)
        at or
        prior to 3:00 p.m., New York City time, on October 5, 2006 (and, in the
        event such conditions are not so satisfied or waived, the Revolving Commitments
        shall terminate at such time).

       

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

       

      (a)
          The
        representations and warranties of each Loan Party set forth in the Loan
        Documents shall be true and correct on and as of the date of such Borrowing
        or
        the date of issuance, amendment, renewal or extension of such Letter of Credit,
        as applicable, except for representations and warranties expressly made as
        of an
        earlier date, which shall be true and correct as of such earlier
        date.

       

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

       

      Each
        Borrowing and each issuance, amendment, renewal or extension of a Letter
        of
        Credit shall be deemed to constitute a representation and warranty by Holdings
        and the Borrower on the date thereof as to the matters specified in paragraphs
        (a) and (b) of this Section.

       

      ARTICLE
        V

       

      Affirmative
        Covenants

       

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

       

      SECTION
        5.01.   Financial
        Statements and Other Information. Holdings
        and the Borrower will furnish to the Administrative Agent and each
        Lender:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      45

       

      (a)
          within
        90 days after the end of each fiscal year of Holdings, Holdings’ audited
        consolidated balance sheets and related statements of operations, stockholders’
equity and cash flows as of the end of and for such year, setting forth in
        each
        case in comparative form the figures for the previous fiscal year, all reported
        on by Deloitte & Touche LLP or other independent public accountants of
        recognized national standing (without a “going concern” or like qualification or
        exception and without any qualification or exception as to the scope of such
        audit or other material qualification or exception) to the effect that such
        consolidated financial statements present fairly in all material respects
        the
        financial condition and results of operations of Holdings and its consolidated
        Subsidiaries on a consolidated basis in accordance with GAAP consistently
        applied;

       

      (b)
          within
        45 days after the end of each of the first three fiscal quarters of each
        fiscal year of Holdings, Holdings’ consolidated balance sheets and related
        statements of operations, stockholders’ equity and cash flows as of the end of
        and for such fiscal quarter and the then elapsed portion of the fiscal year,
        setting forth in each case in comparative form the figures for the corresponding
        period or periods of (or, in the case of the balance sheet, as of the end
        of)
        the previous fiscal year, all certified by one of its Financial Officers
        as
        presenting fairly in all material respects the financial condition and results
        of operations of Holdings and its consolidated Subsidiaries on a consolidated
        basis in accordance with GAAP consistently applied, subject to normal year-end
        audit adjustments and the absence of footnotes;

       

      (c)
          concurrently
        with any delivery of financial statements (or within three Business Days
        after
        any deemed delivery) under clause (a) or (b) above, a certificate of a
        Financial Officer of the Borrower (i) certifying as to whether a Default
        has occurred and, if a Default has occurred, specifying the details thereof
        and
        any action taken or proposed to be taken with respect thereto, (ii) setting
        forth reasonably detailed calculations demonstrating compliance with
        Sections 6.08 and 6.09 as of the end of the period covered by such
        financial statements and (iii) stating whether any change in GAAP or in the
        application thereof has occurred since the date of Holdings’ audited financial
        statements referred to in Section 3.04 and, if any such change has
        occurred, specifying the effect of such change on the financial statements
        accompanying such certificate;

       

      (d)
          concurrently
        with any delivery of financial statements (or within three Business Days
        after
        any deemed delivery) under clause (a) above, a certificate of the
        accounting firm that reported on such financial statements stating whether
        they
        obtained knowledge during the course of their examination of such financial
        statements of any Default (which certificate may be limited to the extent
        required by accounting rules or guidelines);

       

      (e)
          as
        soon
        as the same are complete, but in no event more that 60 days after the
        commencement of each fiscal year of Holdings, a detailed consolidated budget
        presented on a quarterly basis for such fiscal year (including a projected
        consolidated balance sheet and related statements of projected operations
        and
        cash flow as of the end of and for such fiscal year) and, promptly when
        available, any significant revisions of such budget;

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      46

       

      (f)
          promptly
        after the same become publicly available, copies of all periodic and other
        reports, proxy statements and other materials filed by Holdings, the Borrower
        or
        any Subsidiary with the Securities and Exchange Commission, or any Governmental
        Authority succeeding to any or all of the functions of said Commission, or
        with
        any national securities exchange, or distributed by Holdings to its shareholders
        generally, as the case may be;

       

      (g)
          promptly
        following any request therefor, such other information regarding the operations,
        business affairs and financial condition of Holdings, the Borrower or any
        Subsidiary, or compliance with the terms of any Loan Document, as the
        Administrative Agent or any Lender may reasonably request; 

       

      (h)
          promptly
        upon the occurrence of any change of Rating by Moody’s or S&P, a certificate
        of a Financial Officer setting forth the new Rating, the effective date thereof
        and, if applicable, notice of any change in the Applicable Rate as a result
        thereof; and

       

      (i)
          promptly
        after the same are furnished to the Borrower, copies of any “Management Letter”
delivered to Holdings and the Borrower by their independent certified public
        accountants in connection with the delivery of financial statements contemplated
        by Section 5.01(a) if such Letter discloses any material weaknesses in internal
        financial controls or other material concerns relating to the financial
        statements identified by such accountants.

       

      Notwithstanding
        the foregoing, any financial statements or other reports or filings required
        to
        be furnished by Holdings and the Borrower pursuant to clause (a), (b) or
        (f) of
        this Section 5.01 shall be deemed to have been furnished if Holdings or the
        Borrower has (i) filed the same with the Securities and Exchange Commission
        via
        the EDGAR filing system and the same are publicly available and (ii) delivered
        notice thereof to the Administrative Agent.

       

      SECTION
        5.02.   Notices
        of Material Events.
        Upon
        Holdings or the Borrower obtaining knowledge thereof, Holdings and the Borrower
        will furnish to the Administrative Agent and each Lender prompt written notice
        of the following:

       

      (a)
          the
        occurrence of any Default;

       

      (b)
          the
        filing or commencement of any action, suit or proceeding by or before any
        arbitrator or Governmental Authority against or affecting Holdings, the Borrower
        or any Affiliate thereof that, if adversely determined, could reasonably
        be
        expected to result in a Material Adverse Effect;

       

      (c)
          the
        occurrence of any ERISA Event that, alone or together with any other ERISA
        Events that have occurred, could reasonably be expected to result in liability
        of Holdings, the Borrower and their Subsidiaries in an aggregate amount
        exceeding $1,000,000; and

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      47

       

      (d)
          any
        other
        development that results in, or could reasonably be expected to result in,
        a
        Material Adverse Effect.

       

      Each
        notice delivered under this Section shall be accompanied by a statement of
        a
        Financial Officer or other executive officer of Holdings or the Borrower
        setting
        forth the details of the event or development requiring such notice and any
        action taken or proposed to be taken with respect thereto.

       

      SECTION
        5.03.   Existence;
        Conduct of Business.
        Each of
        Holdings and the Borrower will, and will cause each of its Subsidiaries to,
        do
        or cause to be done all things necessary to preserve, renew and keep in full
        force and effect its legal existence and the rights, licenses, permits,
        privileges, franchises, patents, copyrights, trademarks and trade names material
        to the conduct of its business; provided
        that the
        foregoing shall not prohibit any merger, consolidation, liquidation or
        dissolution permitted under Section 6.03.

       

      SECTION
        5.04.   Payment
        of Obligations.
        Each of
        Holdings and the Borrower will, and will cause each of its Subsidiaries to,
        pay
        its Indebtedness and other obligations, including Tax liabilities, that,
        if not
        paid, would reasonably be expected to result in a Material Adverse Effect
        before
        the same shall become delinquent or in default, except where (a) the
        validity or amount thereof is being contested in good faith (in the case
        of Tax
        liabilities or obligations to Government Authorities by appropriate
        proceedings), (b) Holdings, the Borrower or such Subsidiary has set aside
        on its books adequate reserves with respect thereto in accordance with GAAP,
        (c) such contest effectively suspends collection of the contested
        obligation and the enforcement of any Lien securing such obligation and
        (d) the failure to make payment pending such contest would not reasonably
        be expected to result in a Material Adverse Effect.

       

      SECTION
        5.05.   Maintenance
        of Properties.
        Each of
        Holdings and the Borrower will, and will cause each of its Subsidiaries to,
        keep
        and maintain all property material to the conduct of its business in good
        working order and condition, ordinary wear and tear excepted.

       

      SECTION
        5.06.   Insurance.
        Each of
        Holdings and the Borrower will, and will cause each of its Subsidiaries to,
        maintain, with financially sound and reputable insurance companies adequate
        insurance for its insurable properties, all to such extent and against such
        risks, including fire, casualty and other risks insured against by extended
        coverage, as is customary with companies in the same or similar businesses
        operating in the same or similar locations.

       

      SECTION
        5.07.   Books
        and Records; Inspection and Audit Rights. Each
        of
        Holdings and the Borrower will, and will cause each of its Subsidiaries to,
        keep
        proper books of record and account in which full, true and correct entries
        are
        made of all dealings and transactions in relation to its business and
        activities. Each of Holdings and the Borrower will, and will cause each of
        its
        Subsidiaries to, permit any representatives designated by the Administrative
        Agent or any Lender, upon reasonable prior notice, to visit and inspect its
        properties, to examine and make extracts from its books and records,

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      48

       

      and
        to
        discuss its affairs, finances and condition with its officers and independent
        accountants, all at such reasonable times and as often as reasonably requested;
        provided
        that the
        Borrower shall be given the opportunity to be present at any discussion with
        its
        independent accountants.

       

      SECTION
        5.08.   Compliance
        with Laws.
        Each of
        Holdings and the Borrower will, and will cause each of its Subsidiaries to,
        comply with all laws, rules, regulations and orders of any Governmental
        Authority applicable to it or its property, except where the failure to do
        so,
        individually or in the aggregate, could not reasonably be expected to result
        in
        a Material Adverse Effect.

       

      SECTION
        5.09.   Use
        of
        Proceeds and Letters of Credit.
        The
        proceeds of the Loans will be used for general corporate purposes, including
        to
        prepay all loans under the Existing Credit Agreement outstanding on the
        Effective Date. No part of the proceeds of any Loan will be used, whether
        directly or indirectly, for any purpose that entails a violation of any of
        the
        Regulations of the Board, including Regulations U and X. Letters of Credit
        will be issued only for general corporate purposes.

       

      ARTICLE
        VI

       

      Negative
        Covenants

       

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

       

      SECTION
        6.01.   Subsidiary
        Indebtedness.
        The
        Borrower will not permit any Subsidiary of the Borrower to create, incur
        assume
        or permit to exist any Indebtedness (including pursuant to any Guarantee
        of
        Indebtedness of Holdings, the Borrower or any other Subsidiary),
        except:

       

      (a)  Indebtedness
        existing on the Effective Date and set forth in Schedule 6.01, but not any
        extensions, renewals or replacements of any such Indebtedness;

       

      (b)  Indebtedness
        of any Subsidiary of the Borrower owing to the Borrower or any other Subsidiary
        of the Borrower; 

       

      (c)  Guarantees
        by any Subsidiary of the Borrower of Indebtedness of any other Subsidiary
        of the
        Borrower; provided
        that the
        Indebtedness so Guaranteed is permitted by this Section;

       

      (d)  Indebtedness
        of any Subsidiary of the Borrower incurred to finance the acquisition,
        construction or improvement of any fixed or capital assets after the Effective
        Date, including Capital Lease Obligations and any Indebtedness assumed in
        connection with the acquisition of any such assets or secured by a 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        
          49

           

          Lien
on
            any
            such assets prior to the acquisition thereof, and extensions, renewals
            and
            replacements of any such Indebtedness that do not increase the outstanding
            principal amount thereof or result in an earlier maturity date or decreased
            weighted average life thereof; provided
            that
            (i) such Indebtedness is incurred prior to or within 270 days after
            such acquisition or the completion of such construction or improvement
            and
            (ii) the aggregate principal amount of Indebtedness permitted by this
            clause (d) (and that is not listed in Schedule 6.01) and clause (e) below
            shall not exceed $100,000,000 at any time outstanding;

        

      

       

      (e)  Indebtedness
        of (i) any Person that becomes a Subsidiary after the Effective Date
        pursuant to a Permitted Acquisition to the extent that such Indebtedness
        exists
        at the time such Person becomes a Subsidiary and is not created in contemplation
        of or in connection with such Person becoming a Subsidiary and (ii) a
        Subsidiary to the extent that such Indebtedness is assumed in connection
        with a
        Permitted Acquisition made by such Subsidiary and is not created in
        contemplation of such Permitted Acquisition provided
        that the
        aggregate principal amount of Indebtedness permitted by this clause (e) and
        clause (d) above shall be subject to the limitations set forth in clause
        (ii) of
        the proviso at the end of clause (d) above;
        and

       

      (f)  other
        Indebtedness of Subsidiaries of the Borrower in an aggregate principal amount
        at
        any time outstanding not exceeding $75,000,000.

       

      SECTION
        6.02.   Liens. (a)
        The
        Borrower will not, and will not permit any Subsidiary to, create, incur,
        assume
        or permit to exist any Lien on any property or asset now owned or hereafter
        acquired by it, or assign or sell any income or revenues (including accounts
        receivable) or rights in respect of any thereof, except:

       

      (i)
          Liens
        created under the Loan Documents;

       

      (ii)
          Permitted
        Encumbrances;

       

      (iii)
          any
        Lien
        on any property or asset of the Borrower or any Subsidiary existing on the
        Effective Date and set forth in Schedule 6.02; provided
        that
        (i) such Lien shall not apply to any other property or asset of the
        Borrower or any Subsidiary and (ii) such Lien shall secure only those
        obligations which it secures on the date hereof and extensions, renewals
        and
        replacements thereof that do not increase the outstanding principal amount
        thereof;

       

      (iv)
          any
        Lien
        existing on any property or asset prior to the acquisition thereof by the
        Borrower or any Subsidiary after the Effective Date or existing on any property
        or asset of any Person that becomes a Subsidiary after the Effective Date
        prior
        to the time such Person becomes a Subsidiary; provided
        that
        (A) such Lien is not created in contemplation of or in connection with such
        acquisition or such Person becoming a Subsidiary, as the case may be,
        (B) such Lien shall not apply to any other property or assets of the
        Borrower or any Subsidiary and (C) such Lien shall secure only those
        obligations which it secures on the date of 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      50

       

      such
        acquisition or the date such Person becomes a Subsidiary, as the case may
        be,
        and extensions, renewals and replacements thereof that do not increase the
        outstanding principal amount thereof; and

       

      (v)
          Liens
        on
        fixed or capital assets acquired, constructed or improved by the Borrower
        or any
        Subsidiary after the Effective Date; provided
        that
        (A) such security interests secure Indebtedness incurred to finance the
        acquisition, construction or improvement of such fixed or capital assets,
        including Capital Lease Obligations and any Indebtedness assumed in connection
        with the acquisition of any such assets or secured by a Lien on any such
        assets
        prior to the acquisition thereof, and extensions, renewals and replacements
        of
        any such Indebtedness that do not increase the outstanding principal amount
        thereof or result in an earlier maturity date or decreased weighted average
        life
        thereto (and, in the case of any such Indebtedness of a Subsidiary of the
        Borrower, is Indebtedness permitted by Section 6.01), (B) such security
        interests and the Indebtedness secured thereby are incurred prior to or within
        270 days after such acquisition or the completion of such construction or
        improvement, (C) the Indebtedness secured thereby does not exceed the cost
        (including design, engineering, sales taxes, delivery, installation and other
        similar costs) of acquiring, constructing or improving such fixed or capital
        assets and (D) such security interests shall not apply to any other
        property or assets (other than proceeds of the property and assets originally
        encumbered by such security interests) of the Borrower or any Subsidiary;
        and

       

      (vi)
          other
        Liens securing Indebtedness or other monetary obligations of the Borrower
        or any
        Subsidiary (other than Liens on inventory); provided
        that the
        sum of all Indebtedness and other monetary obligations at any time outstanding
        secured by Liens permitted by this clause (vi), plus the fair market value
        of
        all assets sold after the Effective Date pursuant to Sale and Leaseback
        Transactions in reliance on clause (b) of Section 6.07, shall not at any
        time
        exceed $125,000,000. 

       

      (b)
          Holdings
        will not create, incur, assume or permit to exist any Lien on any property
        or
        asset now owned or hereafter acquired by it (other than Excluded Margin Stock),
        or assign or sell any income or revenues (including accounts receivable)
        or
        rights in respect thereof, except Permitted Encumbrances.

       

      SECTION
        6.03.   Fundamental
        Changes. (a)
        Neither
        Holdings nor the Borrower will, nor will they permit any Subsidiary to, merge
        into or consolidate with any other Person, or permit any other Person to
        merge
        into or consolidate with it, or liquidate or dissolve, except that, if at
        the
        time thereof and immediately after giving effect thereto no Default shall
        have
        occurred and be continuing (i) any Subsidiary may merge into the Borrower
        in a transaction in which the Borrower is the surviving corporation,
        (ii) any Subsidiary (other than the Borrower) may merge into any other
        Subsidiary (other than the Borrower) in a transaction in which the surviving
        entity is a Subsidiary, (iii) any Subsidiary (other than the Borrower ) may
        liquidate or dissolve if the Borrower determines in good faith that such
        liquidation or dissolution is in the best interests of the 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      51

       

      Borrower
        and is not materially disadvantageous to the Lenders, (vi) any Subsidiary
        may merge with another entity to implement a Permitted Acquisition and (v)
        any
        Subsidiary of the Borrower may merge with another entity to implement a sale
        or
        other disposition of such Subsidiary otherwise permitted by this Agreement,
        provided that, after giving effect thereto, such Subsidiary shall no longer
        be a
        Subsidiary; provided
        that any
        such merger involving a Person that is not a wholly owned Subsidiary immediately
        prior to such merger shall not be permitted unless also permitted by
        Section 6.04.

       

      (b)
          The
        Borrower will not, and will not permit any of its Subsidiaries to, engage
        to any
        material extent in any business other than businesses of the type conducted
        by
        the Borrower and its Subsidiaries on the Effective Date and businesses
        reasonably related thereto.

       

      (c)
          Holdings
        will not engage in any business or activity other than the ownership of all
        the
        outstanding shares of capital stock of the Borrower and activities incidental
        thereto, including the conduct of stock repurchase programs, administering
        payrolls for executive officers and other activities incidental to its existence
        as a publicly-owned holding company. Holdings will not own or acquire any
        assets
        (other than shares of capital stock of the Borrower, cash, promissory notes
        held
        pursuant to clause (g) of Section 6.04 and Permitted Investments) or
        incur any liabilities (other than liabilities under the Loan Documents,
        liabilities imposed by law, including tax liabilities, and other liabilities
        incidental to its existence and permitted business and activities). Holdings
        will not have any Subsidiaries, other than the Borrower and its
        Subsidiaries.

       

      SECTION
        6.04.   Investments,
        Loans, Advances, Guarantees and Acquisitions.
        The
        Borrower will not, and will not permit any of its Subsidiaries to, purchase,
        hold or acquire (including pursuant to any merger with any Person that was
        not a
        wholly owned Subsidiary prior to such merger) any Equity Interests, evidences
        of
        indebtedness or other securities (including any option, warrant or other
        right
        to acquire any of the foregoing) of, make or permit to exist any loans or
        advances to, Guarantee any obligations of, or make or permit to exist any
        investment or any other interest in, any other Person, or purchase or otherwise
        acquire (in one transaction or a series of transactions) any assets of any
        other
        Person constituting a business unit, except:

       

      (a)
          Permitted
        Investments;

       

      (b)
          investments
        existing on the Effective Date and set forth on Schedule 6.04, to the
        extent such investments would not be permitted under any other clause of
        this
        Section;

       

      (c)
          investments
        in the Equity Interests of their respective Subsidiaries; 

       

      (d)
          loans
        or
        advances made by the Borrower to any Subsidiary of the Borrower (or to Holdings)
        and made by any Subsidiary of the Borrower to the Borrower or any other
        Subsidiary of the Borrower; 

       

      (e)
          Guarantees
        by the Borrower and its Subsidiaries of obligations of the Borrower or any
        of
        its Subsidiaries; provided
        that any
        such Guarantees by Subsidiaries of 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      52

       

      the
        Borrower of obligations of the Borrower shall be limited to Guarantees of
        Indebtedness that are permitted by Section 6.01;

       

      (f)
          investments
        received in connection with the bankruptcy or reorganization of, or settlement
        of delinquent accounts and disputes with, customers and suppliers, in each
        case
        in the ordinary course of business;

       

      (g)
          promissory
        notes received from employees of Holdings and its Subsidiaries evidencing
        loans
        made for the purpose of permitting such employees to purchase capital stock
        of
        Holdings in an aggregate principal amount not exceeding $5,000,000 at any
        time
        outstanding;

       

      (h)
          Permitted
        Acquisitions; 

       

      (i)
          loans
        or
        advances to employees in the ordinary course of business; provided
        that the
        aggregate amount of all loans and advances permitted by this clause (i)
        shall not exceed $750,000 at any time outstanding;

       

      (j)
          obligations
        of management to the Borrower in connection with split dollar life insurance
        policies; provided
        that the
        aggregate amount of all obligations permitted by this clause (j) shall not
        exceed $2,000,000 at any time outstanding;

       

      (k)
          investments
        incurred in connection with Deferred Compensation Obligations; and

       

      (l)
          other
        investments in an aggregate amount not exceeding $50,000,000 at any time
        outstanding.

       

      SECTION
        6.05.   Swap
        Agreements.
        Neither
        Holdings nor the Borrower will, nor will they permit any Subsidiary to, enter
        into any Swap Agreement, except (a) Swap Agreements entered into to hedge
        or mitigate risks to which Holdings, the Borrower or any Subsidiary has actual
        exposure (other than those in respect of Equity Interests of Holdings, the
        Borrower or any of its Subsidiaries), and (b) Swap Agreements entered into
        in order to effectively cap, collar or exchange interest rates (from fixed
        to
        floating rates, from one floating rate to another floating rate or otherwise)
        with respect to any interest-bearing liability or investment of Holdings,
        the
        Borrower or any Subsidiary. 

       

      SECTION
        6.06.   Restrictive
        Agreements.
        Neither
        Holdings nor the Borrower will, nor will they permit any Subsidiary to, directly
        or indirectly, enter into, incur or permit to exist any agreement or other
        arrangement that prohibits, restricts or imposes any condition upon (a) the
        ability of Holdings, the Borrower or any Subsidiary to create, incur or permit
        to exist any Lien upon any of its property or assets, or (b) the ability of
        any Subsidiary to pay dividends or other distributions with respect to any
        of
        its Equity Interests or to make or repay loans or advances to the Borrower
        or
        any other Subsidiary or to Guarantee Indebtedness of the Borrower or any
        other
        Subsidiary; provided
        that
        (i) the foregoing shall not apply to restrictions and conditions imposed by
        law or by any Loan Document, (ii) the foregoing shall not apply to
        restrictions and conditions existing on the Effective Date identified on
        Schedule 6.06 (but shall apply to 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      53

       

      any
        extension or renewal of, or any amendment or modification expanding the scope
        of, any such restriction or condition), (iii) the foregoing shall not apply
        to customary restrictions and conditions contained in agreements relating
        to the
        sale of a Subsidiary or any asset or property pending such sale, provided
        such
        restrictions and conditions apply only to the Subsidiary, asset or property
        that
        is to be sold and such sale is permitted hereunder, (iv) clause (a) of the
        foregoing shall not apply to restrictions or conditions imposed by any agreement
        relating to secured Indebtedness permitted by this Agreement if such
        restrictions or conditions apply only to the property or assets securing
        such
        Indebtedness and (v) clause (a) of the foregoing shall not apply to
        customary provisions in leases, licenses, or other contracts restricting
        the
        assignment thereof.

       

      SECTION
        6.07.   Sale
        and Lease-Back Transactions.
        Neither
        Holdings nor the Borrower will, nor will they permit any Subsidiary to, enter
        into any arrangement, directly or indirectly, with any Person whereby it
        shall
        sell or transfer any property, real or personal, used or useful in its business,
        whether now owned or hereafter acquired, and thereafter rent or lease such
        property or other property which it intends to use for substantially the
        same
        purpose or purposes as the property being sold or transferred (a “Sale
        and Leaseback Transaction”),
        except for (a) any such Sale and Leaseback Transaction involving the sale
        of fixed or capital assets (other than those acquired pursuant to a Permitted
        Acquisition), at a price not less than the cost thereof, that is consummated
        within 360 days after the date that such assets are acquired and
        (b) other Sale and Leaseback Transactions consummated after the Effective
        Date, subject to the limitations set forth in clause (vi) of Section
        6.02(a).

       

      SECTION
        6.08.   Leverage
        Ratio.
        The
        Borrower will not permit the Leverage Ratio as of any date to be in excess
        of
        2.50 to 1.00.

       

      SECTION
        6.09.   Consolidated
        Coverage Ratio.
        The
        Borrower will not permit the Consolidated Coverage Ratio for any period of
        four
        consecutive fiscal quarters (commencing with the period ending on the last
        day
        of the first fiscal quarter ended after the Effective Date) to be less than
        2.25
        to 1.00.

       

      ARTICLE
        VII

       

      Events
        of Default

       

      If
        any of
        the following events (“Events
        of Default”)
        shall
        occur:

       

      (a)
          the
        Borrower shall fail to pay any principal of any Loan or any reimbursement
        obligation in respect of any LC Disbursement when and as the same shall become
        due and payable, whether at the due date thereof or at a date fixed for
        prepayment thereof or otherwise;

       

      (b)
          the
        Borrower shall fail to pay any interest on any Loan or any fee or any other
        amount (other than an amount referred to in clause (a) of this Article)
        payable under this Agreement or any other Loan Document, when and as the
        same
        shall become 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      54

       

      due
        and
        payable, and such failure shall continue unremedied for a period of three
        Business Days;

       

      (c)
          any
        representation or warranty made or deemed made by or on behalf of Holdings,
        the
        Borrower or any Subsidiary in or in connection with any Loan Document or
        any
        amendment or modification thereof or waiver thereunder, or in any report,
        certificate, financial statement or other document furnished pursuant to
        or in
        connection with any Loan Document or any amendment or modification thereof
        or
        waiver thereunder, shall prove to have been incorrect in any material respect
        when made or deemed made;

       

      (d)
          Holdings
        or the Borrower shall fail to observe or perform any covenant, condition
        or
        agreement contained in Section 5.02, 5.03 (with respect to the existence of
        Holdings or the Borrower) or 5.09 or in Article VI;

       

      (e)
          either
        Loan Party shall fail to observe or perform any covenant, condition or agreement
        contained in any Loan Document (other than those specified in clause (a),
        (b) or
        (d) of this Article), and such failure shall continue unremedied for a period
        of
        30 days after notice thereof from the Administrative Agent to the Borrower
        (which notice will be given at the request of any Lender);

       

      (f)
          Holdings,
        the Borrower or any Subsidiary shall fail to make any payment (whether of
        principal or interest and regardless of amount) in respect of any Material
        Indebtedness, when and as the same shall become due and payable;

       

      (g)
          any
        event
        or condition occurs that results in any Material Indebtedness becoming due
        prior
        to its scheduled maturity or that enables or permits (with or without the
        giving
        of notice, the lapse of time or both) the holder or holders of any Material
        Indebtedness or any trustee or agent on its or their behalf to cause any
        Material Indebtedness to become due, or to require the prepayment, repurchase,
        redemption or defeasance thereof, prior to its scheduled maturity; provided
        that
        this clause (g) shall not apply to secured Indebtedness that becomes due as
        a result of the voluntary sale or transfer of the property or assets securing
        such Indebtedness;

       

      (h)
          an
        involuntary proceeding shall be commenced or an involuntary petition shall
        be
        filed seeking (i) liquidation, reorganization or other relief in respect of
        Holdings, the Borrower or any Subsidiary or its debts, or of a substantial
        part
        of its assets, under any Federal, state or foreign bankruptcy, insolvency,
        receivership or similar law now or hereafter in effect or (ii) the
        appointment of a receiver, trustee, custodian, sequestrator, conservator
        or
        similar official for Holdings, the Borrower or any Subsidiary or for a
        substantial part of its assets, and, in any such case, such proceeding or
        petition shall continue undismissed for 60 days or an order or decree
        approving or ordering any of the foregoing shall be entered;

       

      (i)
          Holdings,
        the Borrower or any Subsidiary shall (i) voluntarily commence any
        proceeding or file any petition seeking liquidation, reorganization or other
        relief under any Federal, state or foreign bankruptcy, insolvency, receivership
        or similar 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      55

       

      law
        now
        or hereafter in effect, (ii) consent to the institution of, or fail to
        contest in a timely and appropriate manner, any proceeding or petition described
        in clause (h) of this Article, (iii) apply for or consent to the
        appointment of a receiver, trustee, custodian, sequestrator, conservator
        or
        similar official for Holdings, the Borrower or any Subsidiary or for a
        substantial part of its assets, (iv) file an answer admitting the material
        allegations of a petition filed against it in any such proceeding, (v) make
        a general assignment for the benefit of creditors or (vi) take any action
        for the purpose of effecting any of the foregoing;

       

      (j)
          Holdings,
        the Borrower or any Subsidiary shall become unable, admit in writing its
        inability or fail generally to pay its debts as they become due;

       

      (k)
          one
        or
        more judgments for the payment of money in an aggregate amount in excess
        of
        $25,000,000 shall be rendered against Holdings, the Borrower, any Subsidiary
        or
        any combination thereof and the same shall remain undischarged for a period
        of
        30 consecutive days during which execution shall not be effectively stayed,
        or any action shall be legally taken by a judgment creditor (and such action
        is
        not effectively stayed) to attach or levy upon any assets of Holdings, the
        Borrower or any Subsidiary to enforce any such judgment;

       

      (l)
          an
        ERISA
        Event shall have occurred that, in the opinion of the Required Lenders, when
        taken together with all other ERISA Events that have occurred, could reasonably
        be expected to result in liability of the Borrower and its Subsidiaries in
        an
        aggregate amount exceeding (i) $3,000,000 in any year or
        (ii) $5,000,000 for all periods; or

       

      (m)
          a
        Change
        in Control shall occur;

       

      then,
        and
        in every such event (other than an event with respect to the Borrower described
        in clause (h) or (i) of this Article), and at any time thereafter during
        the
        continuance of such event, the Administrative Agent may, and at the request
        of
        the Required Lenders shall, by notice to the Borrower, take either or both
        of
        the following actions, at the same or different
        times:  (i) terminate the Revolving Commitments, and thereupon
        the Revolving Commitments shall terminate immediately, and (ii) declare the
        Loans then outstanding to be due and payable in whole (or in part, in which
        case
        any principal not so declared to be due and payable may thereafter be declared
        to be due and payable), and thereupon the principal of the Loans so declared
        to
        be due and payable, together with accrued interest thereon and all fees and
        other obligations of the Borrower accrued hereunder, shall become due and
        payable immediately, without presentment, demand, protest or other notice
        of any
        kind, all of which are hereby waived by the Borrower; and in case of any
        event
        with respect to the Borrower described in clause (h) or (i) of this
        Article, the Revolving Commitments shall automatically terminate and the
        principal of the Loans then outstanding, together with accrued interest thereon
        and all fees and other obligations of the Borrower accrued hereunder, shall
        automatically become due and payable, without presentment, demand, protest
        or
        other notice of any kind, all of which are hereby waived by the
        Borrower.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      56

       

      ARTICLE
        VIII

       

      The
        Administrative Agent

       

      Each
        of
        the Lenders and the Issuing Banks hereby irrevocably appoints the Administrative
        Agent as its agent 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 of the Loan Documents, together with such actions and
        powers
        as are reasonably incidental thereto.

       

      The
        bank
        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 such bank and its Affiliates
        may accept deposits from, lend money to and generally engage in any kind
        of
        business with Holdings, the Borrower or any Subsidiary or other Affiliate
        thereof as if it were not the Administrative Agent hereunder.

       

      The
        Administrative Agent shall not have any duties or obligations except those
        expressly set forth in the Loan Documents. Without limiting the generality
        of
        the foregoing, (a) the Administrative Agent shall not be subject to any
        fiduciary or other implied duties, regardless of whether a Default has occurred
        and is continuing, (b) the Administrative Agent shall not have any duty to
        take any discretionary action or exercise any discretionary powers, except
        discretionary rights and powers expressly contemplated by the Loan Documents
        that the Administrative Agent is required to exercise in writing by the Required
        Lenders (or such other number or percentage of the Lenders as shall be necessary
        under the circumstances as provided in Section 9.02), and (c) except
        as expressly set forth in the Loan Documents, the Administrative Agent shall
        not
        have any duty to disclose, and shall not be liable for the failure to disclose,
        any information relating to Holdings, the Borrower or any of its Subsidiaries
        that is communicated to or obtained by the bank serving as 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 with the consent or at the
        request of the Required Lenders (or such other number or percentage of the
        Lenders as shall be necessary under the circumstances as provided in
        Section 9.02) or in the absence of its own gross negligence or wilful
        misconduct. The Administrative Agent shall not be deemed not to have knowledge
        of any Default unless and until written notice thereof is given to the
        Administrative Agent by Holdings, the Borrower or a Lender, and 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 any Loan Document, (ii) the contents of any certificate,
        report or other document delivered thereunder or in connection therewith,
        (iii) the performance or observance of any of the covenants, agreements or
        other terms or conditions set forth in any Loan Document, (iv) the
        validity, enforceability, effectiveness or genuineness of any Loan Document
        or
        any other agreement, instrument or document, or (v) the satisfaction of any
        condition set forth in Article IV or elsewhere in any Loan Document, other
        than to confirm receipt of items expressly required to be delivered to the
        Administrative Agent.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      57

       

      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 believed by it to be genuine
        and to have been signed or sent 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 be made by the proper Person, and shall not incur any liability
        for
        relying thereon. The Administrative Agent may consult with legal counsel
        (who
        may be counsel for the Borrower), 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.

       

      The
        Administrative Agent may perform any and all its duties and exercise its
        rights
        and powers 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 its duties and exercise its rights and powers through
        their
        respective Related Parties. The exculpatory provisions of the preceding
        paragraphs shall apply to any such sub-agent and to the Related Parties of
        each
        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.

       

      Subject
        to the appointment and acceptance of a successor the Administrative Agent
        as
        provided in this paragraph, the Administrative Agent may resign at any time
        by
        notifying the Lenders, the Issuing Banks and the Borrower. Upon any such
        resignation, the Required Lenders shall have the right, in consultation with
        the
        Borrower (except that no consultation is required during an Event of Default),
        to appoint a successor. If no successor shall have been so appointed by the
        Required Lenders and shall have accepted such appointment within 30 days
        after the retiring Administrative Agent gives notice of its resignation,
        then
        the retiring Administrative Agent may, on behalf of the Lenders and the Issuing
        Banks, appoint a successor Administrative Agent which shall be a bank with
        an
        office in New York, New York, or an Affiliate of any such bank. Upon the
        acceptance of its appointment as Administrative Agent hereunder by a successor,
        such successor shall succeed to and become vested with all the rights, powers,
        privileges and duties of the retiring Administrative Agent, and the retiring
        Administrative Agent shall be discharged from its duties and obligations
        hereunder. 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 Administrative Agent’s
        resignation hereunder, the provisions of this Article and Section 9.03
        shall continue in effect for the benefit of such retiring Administrative
        Agent,
        its sub-agents and their respective Related Parties in respect of any actions
        taken or omitted to be taken by any of them while it was acting as
        Administrative Agent.

       

      Each
        Lender acknowledges that it has, independently and without reliance upon
        the
        Administrative Agent or any other Lender and based on such documents and
        information as it has deemed appropriate, made its own credit analysis and
        decision to enter into this Agreement. Each Lender also acknowledges that
        it
        will, independently and without reliance upon the Administrative Agent or
        any
        other Lender 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 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      58

       

      Agreement,
        any other Loan Document or related agreement or any document furnished hereunder
        or thereunder.

       

      ARTICLE
        IX

       

      Miscellaneous

       

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

       

      (i)
          if
        to
        Holdings or the Borrower, to Advance Stores Company, Incorporated at 5004
        Valley
        View Boulevard, Roanoke, Virginia 24012, Attention of Chief Financial
        Officer  (Telecopy No. (540) 561-1699);

       

      (ii)
          if
        to the
        Administrative Agent, to JPMorgan Chase Bank, N.A., Loan and Agency Services
        Group, 1111 Fannin Street, 10th Floor, Houston, Texas 77002, Attention
        of Timothy Rojas (Telecopy No. (713) 750-2223), with a copy to JPMorgan
        Chase Bank, N.A., 270 Park Avenue, 4th Floor, New York 10017,
        Attention of Barry Bergman (Telecopy No. (212) 270-6637);

       

      (iii)
          if
        to
        JPMorgan Chase Bank, N.A., as Issuing Bank, to JPMorgan Chase Bank, N.A.,
        in
        care of JPMorgan Treasury Services, 10420 Highland Manor Drive,
        4th Floor, Tampa, Florida 33610, Attention of Standby LC Department
        (Telecopy No. (813) 432-5161)2;

       

      (iv)
          if
        to the
        Swingline Lender, to JPMorgan Chase Bank, N.A., Loan and Agency Services
        Group,
        1111 Fannin Street, 10th Floor, Houston, Texas 77002, Attention of
        Deepa Madhavan (Telecopy No. (713) 750-2932) ;
        and

       

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

       

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

       

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

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      59

       

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

       

      (b)
          Except
        as
        necessary in order to effect an increase in the Revolving Commitments in
        accordance with Section 2.19, neither this Agreement nor any other Loan Document
        nor any provision hereof or thereof may be waived, amended or modified except,
        in the case of this Agreement, pursuant to an agreement or agreements in
        writing
        entered into by Holdings, the Borrower and the Required Lenders or, in the
        case
        of any other Loan Document, pursuant to an agreement or agreements in writing
        entered into by the Administrative Agent and the Loan Party or Loan Parties
        that
        are parties thereto, in each case with the consent of the Required Lenders;
        provided
        that no
        such agreement shall (i) increase the Revolving Commitment of any Lender
        without the written consent of such Lender, (ii) reduce the principal
        amount of any Loan or LC Disbursement or reduce the rate of interest thereon,
        or
        reduce any fees payable hereunder, without the written consent of each Lender
        affected thereby, (iii) postpone the scheduled date of payment of the
        principal amount of any Loan or LC Disbursement, or any interest thereon,
        or any
        fees payable hereunder, or reduce the amount of, waive or excuse any such
        payment, or postpone the scheduled date of expiration of any Revolving
        Commitment, without the written consent of each Lender affected thereby,
        (iv) change Section 2.17(b) or (c) in a manner that would alter
        the pro rata sharing of payments required thereby, without the written consent
        of each Lender, (v) change any of the provisions of this Section or the
        definition of “Required Lenders” or any other provision of any Loan Document
        specifying the number or percentage of Lenders required to waive, amend or
        modify any rights thereunder or make any determination or grant any consent
        thereunder, without the written consent of each Lender, or (vi) release
        Holdings from its Guarantee under the Guarantee Agreement, or limit its
        liability in respect of such Guarantee, without the written consent of each
        Lender; provided further
        that no
        such agreement shall amend, modify or otherwise affect the rights or duties
        of
        the Administrative Agent, any Issuing Bank or the Swingline Lender without
        the
        prior written consent of the Administrative Agent, such Issuing Bank or the
        Swingline Lender, as the case may be. Notwithstanding the foregoing, any
        provision of this Agreement may be amended by an agreement in writing entered
        into by Holdings, the Borrower, the Required Lenders and the Administrative
        Agent (and, if their rights or obligations are 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      60

       

      affected
        thereby, the Issuing Banks and the Swingline Lender) if (i) by the terms
        of such
        agreement the Revolving Commitment of each Lender not consenting to the
        amendment provided for therein shall terminate upon the effectiveness of
        such
        amendment and (ii) at the time such amendment becomes effective, each Lender
        not
        consenting thereto receives payment in full of the principal of and interest
        accrued on each Loan made by it and all other amounts owing to it or accrued
        for
        its account under this Agreement.

       

      SECTION
        9.03.   Expenses;
        Indemnity; Damage Waiver. (a)
        The
        Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by
        the Administrative Agent and its Affiliates, including the reasonable fees,
        charges and disbursements of counsel for the Administrative Agent, in connection
        with the syndication of the credit facilities provided for herein, the
        preparation and administration of the Loan Documents or any amendments,
        modifications or waivers of the provisions thereof (whether or not the
        transactions contemplated hereby or thereby shall be consummated), (ii) all
        reasonable out-of-pocket expenses incurred by any Issuing Bank in connection
        with the issuance, amendment, renewal or extension of any Letter of Credit
        or
        any demand for payment thereunder and (iii) all out-of-pocket expenses
        incurred by the Administrative Agent, any Issuing Bank or any Lender, including
        the fees, charges and disbursements of any counsel for the Administrative
        Agent,
        any Issuing Bank or any Lender, in connection with the enforcement or protection
        of its rights in connection with the Loan Documents, including its rights
        under
        this Section, or in connection with the Loans made or Letters of Credit issued
        hereunder, including all such out-of-pocket expenses incurred during any
        workout, restructuring or negotiations in respect of such Loans or Letters
        of
        Credit.

       

      (b)
          The
        Borrower shall indemnify the Administrative Agent, each Issuing Bank and
        each
        Lender, 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 fees, charges and
        disbursements of any counsel for any Indemnitee, incurred by or asserted
        against
        any Indemnitee arising out of, in connection with, or as a result of
        (i) the execution or delivery of any Loan Document or any other agreement
        or instrument contemplated hereby, the performance by the parties to the
        Loan
        Documents of their respective obligations thereunder or the consummation
        of the
        Transactions or any other transactions contemplated hereby, (ii) any Loan
        or Letter of Credit or the use of the proceeds therefrom (including any refusal
        by an Issuing Bank to honor a demand for payment under a Letter of Credit
        if the
        documents presented in connection with such demand do not strictly comply
        with
        the terms of such Letter of Credit), (iii) any actual or alleged presence
        or release of Hazardous Materials on or from any property currently or formerly
        owned or operated by Holdings, the Borrower or any of its Subsidiaries, or
        any
        Environmental Liability related in any way to Holdings, the Borrower or any
        of
        its Subsidiaries, 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 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 resulted from
        the
        gross negligence or wilful misconduct of such Indemnitee.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      61

       

      (c)
          To
        the
        extent that the Borrower fails to pay any amount required to be paid by it
        to
        the Administrative Agent, any Issuing Bank or the Swingline Lender under
        paragraph (a) or (b) of this Section, each Lender severally agrees to pay
        to the Administrative Agent, such Issuing Bank or the Swingline Lender, as
        the
        case may be, such Lender’s pro rata share (determined as of the time that the
        applicable unreimbursed expense or indemnity payment is sought) of such unpaid
        amount; provided
        that the
        unreimbursed expense or indemnified loss, claim, damage, liability or related
        expense, as the case may be, was incurred by or asserted against the
        Administrative Agent, such Issuing Bank or the Swingline Lender in its capacity
        as such. For purposes hereof, a Lender’s “pro rata share” shall be determined
        based upon its share of the sum of the total Revolving Exposures and unused
        Revolving Commitments at the time.

       

      (d)
          To
        the
        extent permitted by applicable law, neither Holdings nor the Borrower shall
        assert, and each hereby waives, any claim against any Indemnitee, on any
        theory
        of liability, for special, indirect, consequential or punitive damages (as
        opposed to direct or actual damages) arising out of, in connection with,
        or as a
        result of, this Agreement or any agreement or instrument contemplated hereby,
        the Transactions, any Loan or Letter of Credit or the use of the proceeds
        thereof.

       

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

       

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

       

      (b)
          (i)
        Subject to the conditions set forth in paragraph (b)(ii) below, any Lender
        may assign to one or more assignees all or a portion of its rights and
        obligations under this Agreement (including all or a portion of its Revolving
        Commitment and the Loans at the time owing to it) with the prior written
        consent
        (such consent not to be unreasonably withheld) of:

       

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

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      62

       

      (B)
          the
        Administrative Agent; and

       

      (C)
          each
        Issuing Bank.

       

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

       

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

       

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

       

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

       

      (D)
          the
        assignee, if it shall not be a Lender, shall deliver to the Administrative
        Agent
        an Administrative Questionnaire in
        which
        the assignee designates one or more Credit Contacts to whom all syndicate-level
        information (which may contain material non-public information about the
        Borrower, the Loan Parties and their Related Parties or their respective
        securities) will be made available and who may receive such information in
        accordance with the assignee’s compliance procedures and applicable laws,
        including Federal and state securities laws

       

      For
        the
        purposes of this Section 9.04(b), the term “Approved Fund” has the
        following meaning:

       

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

       

      (iii)
          Subject
        to acceptance and recording thereof pursuant to paragraph (b)(iv) of this
        Section, from and after the effective date specified in each Assignment and
        Assumption the assignee thereunder shall be a party hereto and, to the extent
        of
        the interest assigned by such Assignment and Assumption, have the rights
        and
        obligations of a Lender under this Agreement, and the assigning Lender
        thereunder shall, to the extent of the interest assigned by such 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      63

       

      Assignment
        and Assumption, be released from its obligations under this Agreement (and,
        in
        the case of an Assignment and Assumption covering all of the assigning Lender’s
        rights and obligations under this Agreement, such Lender shall cease to be
        a
        party hereto but shall continue to be entitled to the benefits of
        Sections 2.14, 2.15, 2.16 and 9.03). Any assignment or transfer by a Lender
        of rights or obligations under this Agreement that does not comply with this
        Section 9.04 shall be treated for purposes of this Agreement as a sale by
        such Lender of a participation in such rights and obligations in accordance
        with
        paragraph (c) of this Section.

       

      (iv)
          The
        Administrative Agent, acting for this purpose as an agent of the Borrower,
        shall
        maintain at one of its offices in the City of New York a copy of each Assignment
        and Assumption delivered to it and a register for the recordation of the
        names
        and addresses of the Lenders, and the Revolving Commitment of, and principal
        amount of the Loans and LC Disbursements owing to, each Lender pursuant to
        the
        terms hereof from time to time (the “Register”).
        The
        entries in the Register shall be conclusive, and the Borrower, the
        Administrative Agent, the Issuing Banks and the Lenders may treat each Person
        whose name is recorded in the Register pursuant to the terms hereof as a
        Lender
        hereunder for all purposes of this Agreement, notwithstanding notice to the
        contrary. The Register shall be available for inspection by the Borrower,
        any
        Issuing Bank and any Lender, at any reasonable time and from time to time
        upon
        reasonable prior notice.

       

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

       

      (c)    (i)
        Any Lender may, without the consent of the Borrower, the Administrative Agent,
        any Issuing Bank or the Swingline Lender, sell participations to one or more
        banks or other entities (a “Participant”)
        in all
        or a portion of such Lender’s rights and obligations under this Agreement
        (including all or a portion of its Revolving Commitment and the Loans owing
        to
        it); provided
        that
        (A) such Lender’s obligations under this Agreement shall remain unchanged,
        (B) such Lender shall remain solely responsible to the other parties hereto
        for the performance of such obligations and (C) the Borrower, the
        Administrative Agent, the Issuing Banks and the other Lenders shall continue
        to
        deal solely and directly with such Lender in connection with such Lender’s
        rights and obligations under this Agreement. Any agreement or instrument
        pursuant to which a Lender sells such a participation shall provide that
        such
        Lender shall retain the sole right to enforce the Loan Documents and to approve
        any amendment, modification or waiver of any provision of the Loan Documents;
        provided
        that
        such agreement or instrument may provide that such Lender will not, without
        the
        consent of the Participant,

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      64

       

      agree
        to
        any amendment, modification or waiver described in the first proviso to
        Section 9.02(b) that affects such Participant. Subject to
        paragraph (c)(ii) of this Section, the Borrower agrees that each
        Participant shall be entitled to the benefits of Sections 2.14, 2.15 and
        2.16 to the same extent as if it were a Lender and had acquired its interest
        by
        assignment pursuant to paragraph (b) of this Section. To the extent
        permitted by law, each Participant also shall be entitled to the benefits
        of
        Section 9.08 as though it were a Lender, provided such Participant agrees
        to be subject to Section 2.17(c) as though it were a Lender.

       

      (ii)
          A
        Participant shall not be entitled to receive any greater payment under
        Section 2.14 or 2.16 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 Participant that would be a Foreign Lender if it were
        a
        Lender shall not be entitled to the benefits of Section 2.16 unless the
        Borrower is notified of the participation sold to such Participant and such
        Participant agrees, for the benefit of the Borrower, to comply with
        Section 2.16(e) as though it were a Lender.

       

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

       

      (e)
          Notwithstanding
        anything to the contrary contained herein, any Lender (a “Granting
        Lender”)
        may
        grant to a special purpose funding vehicle (an “SPV”),
        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 Loan that such Granting Lender would otherwise be obligated
        to make to the Borrower pursuant to this Agreement, provided
        that
        (i) nothing herein shall constitute a commitment by any SPV to make any
        Loan and (ii) if an SPV 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 Loan pursuant to the terms hereof. The making of a
        Loan
        by an SPV hereunder shall utilize the Revolving Commitment of the Granting
        Lender to the same extent, and as if, such Loan were made by such Granting
        Lender. Each party hereto hereby agrees that no SPV shall be liable for any
        indemnity or similar payment obligation under this Agreement (all liability
        for
        which shall remain with the Granting Lender). In furtherance of the foregoing,
        each party hereto hereby agrees (which agreement shall survive the termination
        of this Agreement) that, prior to the date that is one year and one day after
        the payment in full of all outstanding commercial paper or other senior
        indebtedness of any SPV, it will not institute against, or join any other
        person
        in instituting against, such SPV any bankruptcy, reorganization, arrangement,
        insolvency or liquidation proceedings under the laws of the United States
        of America or any State thereof. In addition, notwithstanding anything to
        the
        contrary in this 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      65

       

      Section 9.04,
        any SPV may (i) with notice to, but without the prior written consent of,
        the Borrower and the Administrative Agent and without paying any processing
        fee
        therefor, assign all or a portion of its interests in any Loans to the Granting
        Lender or to any financial institutions (consented to by the Borrower and
        the
        Administrative Agent) providing liquidity and/or credit support to or for
        the
        account of such SPV to support the funding or maintenance of Loans and
        (ii) disclose on a confidential basis any non-public information relating
        to its Loans to any rating agency, commercial paper dealer or provider of
        any
        surety, guarantee or credit or liquidity enhancement to such SPV. As this
        Section 9.04(e) applies to any particular SPV, this Section may not be
        amended without the written consent of such SPV.

       

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

       

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

       

      SECTION
        9.07.   Severability.
        Any
        provision of this Agreement held to be invalid, illegal or unenforceable
        in any
        jurisdiction shall, as to such jurisdiction, be

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      66

       

      ineffective
        to the extent of such invalidity, illegality or unenforceability without
        affecting the validity, legality and enforceability of the remaining provisions
        hereof; and the invalidity of a particular provision in a particular
        jurisdiction shall not invalidate such provision in any other
        jurisdiction.

       

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

       

      SECTION
        9.09.   Governing
        Law; Jurisdiction; Consent to Service of Process. (a)
        This
        Agreement shall be construed in accordance with and governed by the law of
        the
        State of New York.

       

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

       

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

       

      (d)
          Each
        party to this Agreement irrevocably consents to service of process in the
        manner
        provided for notices in Section 9.01. Nothing in this Agreement or

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      67

       

      any
        other
        Loan Document will affect the right of any party to this Agreement to serve
        process in any other manner permitted by law.

       

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

       

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

       

      SECTION
        9.12.   Confidentiality.
        Each of
        the Administrative Agent, the Issuing Bank and the Lenders agrees to maintain
        the confidentiality of the Information (as defined below), except that
        Information may be disclosed (a) to its and its Affiliates' directors,
        officers, employees and agents, including accountants, legal counsel and
        other
        advisors (it being understood that the Persons to whom such disclosure is
        made
        will be informed of the confidential nature of such Information and instructed
        to keep such Information confidential), (b) to the extent requested by any
        regulatory authority, (c) to the extent required by applicable laws or
        regulations or by any subpoena or similar legal process, (d) to any other
        party to this Agreement, (e) in connection with the exercise of any
        remedies hereunder or any suit, action or proceeding relating to this Agreement
        or the enforcement of rights hereunder, (f) subject to an agreement
        containing provisions substantially the same as those of this Section, to
        (i) any assignee of or Participant in, or any prospective assignee of or
        Participant in, any of its rights or obligations under this Agreement 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 (i) becomes publicly available other than as a result of a
        breach of this Section or (ii) becomes available to the Administrative
        Agent, the Issuing Bank or any Lender on a non-confidential basis from a
        source
        other than the Borrower.

       

      For
        the
        purposes of this Section, "Information" means all information received from
        the
        Borrower relating to the Borrower or its business, other than any such
        information that is available to the Administrative Agent, the Issuing Bank
        or
        any Lender on a non-confidential basis prior to disclosure by the Borrower;
        provided that, in the case 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      68

       

      of
        information received from the Borrower after the date hereof, such information
        is clearly identified at the time of delivery as confidential. Any Person
        required to maintain the confidentiality of Information as provided in this
        Section shall be considered to have complied with its obligation to do so
        if
        such Person has exercised the same degree of care to maintain the
        confidentiality of such Information as such Person would accord to its own
        confidential information.

       

      EACH
        LENDER ACKNOWLEDGES THAT INFORMATION AS DEFINED IN
        SECTION 9.12 FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE
        MATERIAL NON-PUBLIC INFORMATION CONCERNING THE BORROWER AND ITS RELATED PARTIES
        OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE
        PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT
        IT WILL
        HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES
        AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.

       

      ALL
        INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY
        THE
        BORROWER OR THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF
        ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL INFORMATION, WHICH
        MAY
        CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE BORROWER, THE LOAN PARTIES
        AND
        THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES. ACCORDINGLY, EACH LENDER
        REPRESENTS TO THE BORROWER AND THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED
        IN ITS ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION
        THAT MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS
        COMPLIANCE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES
        LAWS.

       

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

       

      SECTION
        9.14.   USA
        Patriot Act.  Each
        Lender hereby notifies each of the Borrower and Holdings that pursuant to
        the
        requirements of the USA Patriot Act 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      69

       

      (Title
        III of Pub. L. 107-56 (signed into law October 26, 2001)), (the
“Act”),
        it is
        required to obtain, verify and record information that identifies each of
        the
        Borrower and Holdings, which information includes the name and address of
        each
        of the Borrower and Holdings and other information that will allow such Lender
        to identify each of the Borrower and Holdings in accordance with the
        Act.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      70

      
 

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

       

      
        
          

          
            	ADVANCE AUTO PARTS, INC.
	 
	 	by 	 
	 	 	 
	 	 	
                    
                      

                      Name: Michael O. Moore

                    Title:
                      Executive Vice President, Chief Financial
                      Officer

                  

          

           

          
            

            
              	ADVANCE STORES COMPANY,
	INCORPORATED, 
	 
	 	by 	 
	 	 	 
	 	 	
                      
                        

                        Name: Michael O. Moore

                      Title:
                        Executive Vice President, Chief Financial
                        Officer

                    

            

             

             

          

          
            
              	
                      JPMORGAN CHASE BANK, N.A.,

                      individually and as Administrative Agent,

                    
	 
	 	by: 	 
	 	 	 
	 	 	
                      
                        

                      

                      Name: Barry Bergman

                      Title: Managing Director

                    

            

             

          

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      71

      
         

        
          
            	
                    SIGNATURE PAGE TO THE CREDIT AGREEMENT
                      DATED AS OF
                      OCTOBER 5, 2006, AMONG ADVANCE AUTO PARTS, INC., ADVANCE STORES
                      COMPANY,
                      INCORPORATED, THE LENDERS PARTY HERETO AND JPMORGAN CHASE BANK,
                      N.A., AS
                      ADMINISTRATIVE AGENT

                  
	 
	 
	 	      By: 
	 	 
	 	 	
                    
                      

                    

                    Name:

                    Title:Exhibit 10.3

    
      Exhibit
        10.3

       

      EXECUTION
        COPY

      
 

      GUARANTEE
        AGREEMENT dated as of October 5, 2006, among ADVANCE AUTO PARTS, INC., a
        Delaware corporation (“Holdings”
and
        the
“Guarantor”),
        and
        JPMORGAN CHASE BANK, N.A., a New York banking corporation (“JPMCB”),
        as
        administrative agent (in such capacity, the “Administration
        Agent”)
        for
        the Lenders (as defined in the Credit Agreement referred to below).

       

      Reference
        is made to the Credit Agreement dated as of October 5, 2006 (as amended,
        supplemented or otherwise modified from time to time, the “Credit
        Agreement”),
        among
        Holdings, Advance Stores Company, Incorporated, a Virginia corporation (the
        “Borrower”),
        the
        lenders from time to time party thereto (the “Lenders”)
        and
        JPMCB, as administrative agent (in such capacity, the “Administrative
        Agent”)
        for
        the Lenders and as issuing bank (in such capacity, the “Issuing
        Bank”).
        Capitalized terms used herein and not defined herein shall have the meanings
        assigned to such terms in the Credit Agreement.

       

      The
        Lenders have agreed to make Loans to the Borrower, and the Issuing Bank has
        agreed to issue Letters of Credit for the account of the Borrower, pursuant
        to,
        and upon the terms and subject to the conditions specified in, the Credit
        Agreement. The Borrower has elected that the Guarantor guarantee the Obligations
        (as defined below) by entering into this Guarantee Agreement. Holdings
        acknowledges that it will derive substantial benefit from the making of the
        Loans by the Lenders and the issuance of the Letters of Credit by the Issuing
        Bank. The obligations of the Lenders to make Loans and of the Issuing Bank
        to
        issue Letters of Credit are conditioned on, among other things, the execution
        and delivery by the Guarantor of a Guarantee Agreement in the form hereof.
        As
        consideration therefor and in order to induce the Lenders to make Loans and
        the
        Issuing Bank to issue Letters of Credit, the Guarantor is willing to execute
        this Guarantee Agreement.

       

      Accordingly,
        the parties hereto agree as follows:

       

      SECTION
        1.   Guarantee.
        The
        Guarantor unconditionally guarantees, as a primary obligor and not merely
        as a
        surety, (a) the due and punctual payment of (i) the principal of and premium,
        if
        any, and interest (including interest accruing during the pendency of any
        bankruptcy, insolvency, receivership or other similar proceeding, regardless
        of
        whether allowed or allowable in such proceeding) on the Loans, when and as
        due,
        whether at maturity, by acceleration, upon one or more dates set for prepayment
        or otherwise, (ii) each payment required to be made by the Borrower under
        the
        Credit Agreement in respect of any Letter of Credit, when and as due, including
        payments in respect of reimbursement of disbursements made by the Issuing
        Bank
        with respect thereto, interest thereon and obligations to provide, under
        certain
        circumstances, cash collateral in connection therewith, and (iii) all other
        monetary obligations, including fees, costs, expenses and indemnities, whether
        primary, secondary, direct, contingent, fixed or otherwise (including monetary
        obligations incurred during the pendency of any bankruptcy, insolvency,
        receivership or other similar proceeding, regardless of whether allowed or
        allowable in such proceeding), of the Loan Parties to the Lenders under
        the

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      2

       

      Credit
        Agreement and the other Loan Documents and (b) the due and punctual
        performance of all covenants, agreements, obligations and liabilities of
        the
        Borrower under or pursuant to the Credit Agreement and the other Loan Documents
        (all the monetary obligations described in the preceding clauses (a) and
        (b) being collectively called the “Obligations”).
        The
        Guarantor further agrees that the Obligations may be extended or renewed,
        in
        whole or in part, without notice to or further assent from it, and that the
        security interest granted hereunder and the obligations of the Guarantor
        will
        survive any extension or renewal of any Obligation.

       

      SECTION
        2.   Obligations
        Not Waived.
        To the
        fullest extent permitted by applicable law, the Guarantor waives presentment
        to,
        demand of payment from and protest to the Borrower of any of the Obligations,
        and also waives notice of acceptance of its guarantee and notice of protest
        for
        nonpayment. To the fullest extent permitted by applicable law, the obligations
        of the Guarantor hereunder shall not be affected by (a) the failure of the
        Administrative Agent or any other Lender to assert any claim or demand or
        to
        enforce or exercise any right or remedy against the Borrower or the Guarantor
        under the provisions of the Credit Agreement, any other Loan Document or
        otherwise or (b) any rescission, waiver, amendment or modification of, or
        any release from, any of the terms or provisions of this Guarantee Agreement,
        any other Loan Document, any Guarantee or any other agreement.

       

      SECTION
        3.   Guarantee
        of Payment.
        The
        Guarantor further agrees that its guarantee constitutes a guarantee of payment
        when due and not of collection, and waives any right to require that any
        resort
        be had by the Administrative Agent or any other Lender to any of the security
        held for payment of the Obligations or to any balance of any deposit account
        or
        credit on the books of the Administrative Agent or any other Lender in favor
        of
        the Borrower or any other Person.

       

      SECTION
        4.   No
        Discharge or Diminishment of Guarantee.
        The
        obligations of the Guarantor hereunder shall not be subject to any reduction,
        limitation, impairment or termination for any reason (other than the
        indefeasible payment in full in cash of the Obligations and inchoate
        indemnification and reimbursement obligations), including any claim of waiver,
        release, surrender, alteration or compromise of any of the Obligations, and
        shall not be subject to any defense or setoff, counterclaim, recoupment or
        termination whatsoever by reason of the invalidity, illegality or
        unenforceability of the Obligations or otherwise. Without limiting the
        generality of the foregoing, the obligations of the Guarantor hereunder shall
        not be discharged or impaired or otherwise affected by the failure of the
        Administrative Agent or any other Lender to assert any claim or demand or
        to
        enforce any remedy under the Credit Agreement, any other Loan Document or
        any
        other agreement, by any waiver or modification of any provision of any thereof,
        by any default, failure or delay, wilful or otherwise, in the performance
        of the
        Obligations, or by any other act or omission that may or might in any manner
        or
        to any extent vary the risk of the Guarantor or that would otherwise operate
        as
        a discharge of the Guarantor as a matter of law or equity (other than the
        indefeasible payment in full in cash of all the Obligations and inchoate
        indemnification and reimbursement obligations).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      3

       

      SECTION
        5.   Defenses
        of Borrower Waived.
        To the
        fullest extent permitted by applicable law, the Guarantor waives any defense
        based on or arising out of any defense of the Borrower or the unenforceability
        of the Obligations or any part thereof from any cause, or the cessation from
        any
        cause of the liability of the Borrower, other than the final and indefeasible
        payment in full in cash of the Obligations and inchoate indemnification and
        reimbursement obligations. The Administrative Agent and the other Lenders
        may,
        at their election, compromise or adjust any part of the Obligations, make
        any
        other accommodation with the Borrower or any other guarantor or exercise
        any
        other right or remedy available to them against the Borrower or any other
        guarantor, without affecting or impairing in any way the liability of the
        Guarantor hereunder except to the extent the Obligations have been fully,
        finally and indefeasibly paid in cash. Pursuant to applicable law, the Guarantor
        waives any defense arising out of any such election even though such election
        operates, pursuant to applicable law, to impair or to extinguish any right
        of
        reimbursement or subrogation or other right or remedy of the Guarantor against
        the Borrower.

       

      SECTION
        6.   Agreement
        to Pay; Subordination.
        In
        furtherance of the foregoing and not in limitation of any other right that
        the
        Administrative Agent or any other Lender has at law or in equity against
        the
        Guarantor by virtue hereof, upon the failure of the Borrower or any other
        Loan
        Party to pay any Obligation when and as the same shall become due, whether
        at
        maturity, by acceleration, after notice of prepayment or otherwise, the
        Guarantor hereby promises to and will forthwith pay, or cause to be paid,
        to or
        as directed by the Administrative Agent in cash the amount of such unpaid
        Obligations. Upon payment by the Guarantor of any sums to or as directed
        by the
        Administrative Agent as provided above, all rights of the Guarantor against
        the
        Borrower arising as a result thereof by way of right of subrogation,
        contribution, reimbursement, indemnity or otherwise shall in all respects
        be
        subordinate and junior in right of payment to the prior indefeasible payment
        in
        full in cash of all the Obligations. In addition, any indebtedness of any
        Loan
        Party now or hereafter owed to the Guarantor is hereby subordinated in right
        of
        payment to the prior payment in full of the Obligations. If, at any time
        that a
        Default has occurred and is continuing, any amount shall be paid to the
        Guarantor on account of (a) such subrogation, contribution, reimbursement,
        indemnity or similar right or (b) any such indebtedness of any Loan Party,
        such amount shall be held in trust for the benefit of the Lenders and shall
        forthwith be paid to the Administrative Agent to be credited against the
        payment
        of the Obligations, whether matured or unmatured, in accordance with the
        terms
        of the Loan Documents.

       

      SECTION
        7.   Information.
        The
        Guarantor assumes all responsibility for being and keeping itself informed
        of
        the Borrower’s financial condition and assets, and of all other circumstances
        bearing upon the risk of nonpayment of the Obligations and the nature, scope
        and
        extent of the risks that the Guarantor assumes and incurs hereunder, and
        agrees
        that none of the Administrative Agent or the other Lenders will have any
        duty to
        advise the Guarantor of information known to it or any of them regarding
        such
        circumstances or risks.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      4

       

      SECTION
        8.   Representations
        and Warranties.
        The
        Guarantor represents and warrants that all representations and warranties
        relating to it contained in the Credit Agreement are true and
        correct.

       

      SECTION
        9.   Termination.
        The
        guarantee made hereunder (a) shall terminate when all the Obligations (other
        than inchoate indemnification and reimbursement obligations) have been
        indefeasibly paid in full and the Lenders have no further commitment to lend
        under the Credit Agreement, the LC Exposure has been reduced to zero and
        the
        Issuing Bank has no further obligation to issue Letters of Credit under the
        Credit Agreement and (b) shall continue to be effective or be reinstated,
        as the
        case may be, if at any time payment, or any part thereof, of any Obligation
        is
        rescinded or must otherwise be restored by any Lender or the Guarantor upon
        the
        bankruptcy or reorganization of the Borrower, the Guarantor or
        otherwise.

       

      SECTION
        10.   Binding
        Effect; Assignments.
        Whenever
        in this Guarantee Agreement any of the parties hereto is referred to, such
        reference shall be deemed to include the successors and assigns of such party;
        and all covenants, promises and agreements by or on behalf of the Guarantor
        that
        are contained in this Guarantee Agreement shall bind and inure to the benefit
        of
        each party hereto and their respective successors and assigns. This Guarantee
        Agreement shall become effective as to the Guarantor when a counterpart hereof
        executed on behalf of the Guarantor shall have been delivered to the
        Administrative Agent, and a counterpart hereof shall have been executed on
        behalf of the Administrative Agent, and thereafter shall be binding upon
        the
        Guarantor and the Administrative Agent and their respective successors and
        assigns, and shall inure to the benefit of the Guarantor, the Administrative
        Agent and the other Lenders, and their respective successors and assigns,
        except
        that the Guarantor shall not have the right to assign its rights or obligations
        hereunder or any interest herein (and any such attempted assignment shall
        be
        void).

       

      SECTION
        11.   Waivers;
        Amendment. (a)
        No
        failure or delay of the Administrative Agent in exercising any power or right
        hereunder shall operate as a waiver thereof, nor shall any single or partial
        exercise of any such right or power, or any abandonment or discontinuance
        of
        steps to enforce such a right or power, preclude any other or further exercise
        thereof or the exercise of any other right or power. The rights and remedies
        of
        the Administrative Agent hereunder and of the other Lenders under the other
        Loan
        Documents are cumulative and are not exclusive of any rights or remedies
        that
        they would otherwise have. No waiver of any provision of this Guarantee
        Agreement or consent to any departure by the Guarantor therefrom shall in
        any
        event be effective unless the same shall be permitted by paragraph (b)
        below, and then such waiver or consent shall be effective only in the specific
        instance and for the purpose for which given. No notice or demand on the
        Guarantor in any case shall entitle the Guarantor to any other or further
        notice
        or demand in similar or other circumstances.

       

      (b)
          Neither
        this Guarantee Agreement nor any provision hereof may be waived, amended
        or
        modified except pursuant to a written agreement entered into between the
        Guarantor with respect to which such waiver, amendment or
        modification

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      5

       

      relates
        and the Administrative Agent, subject to any consent required in accordance
        with
        Section 9.02 of the Credit Agreement.

       

      SECTION
        12.   Governing
        Law.
        THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
        LAWS
        OF THE STATE OF NEW YORK.

       

      SECTION
        13.   Notices.
        All
        communications and notices hereunder shall be in writing and given as provided
        in Section 9.01 of the Credit Agreement.

       

      SECTION
        14.   Survival
        of Agreement; Severability. (a)
        All
        covenants, agreements, representations and warranties made by the Guarantor
        herein and in the certificates or other instruments prepared or delivered
        in
        connection with or pursuant to this Guarantee Agreement or any other Loan
        Document shall be considered to have been relied upon by the Administrative
        Agent and the other Lenders and shall survive the making by the Lenders of
        the
        Loans and the issuance of the Letters of Credit by the Issuing Bank regardless
        of any investigation made by the Lenders or on their behalf, and shall continue
        in full force and effect until all the Obligations have been indefeasibly
        paid
        in full, the Lenders have no further commitment to lend, the LC Exposure
        has
        been reduced to zero and the Issuing Bank has no further commitment to issue
        Letters of Credit under the Credit Agreement.

       

      (b)
          In
        the
        event any one or more of the provisions contained in this Guarantee Agreement
        or
        in any other Loan Document should be held invalid, illegal or unenforceable
        in
        any respect, the validity, legality and enforceability of the remaining
        provisions contained herein and therein shall not in any way be affected
        or
        impaired thereby (it being understood that the invalidity of a particular
        provision in a particular jurisdiction shall not in and of itself affect
        the
        validity of such provision in any other jurisdiction). The parties shall
        endeavor in good-faith negotiations to replace the invalid, illegal or
        unenforceable provisions with valid provisions the economic effect of which
        comes as close as possible to that of the invalid, illegal or unenforceable
        provisions.

       

      SECTION
        15.   Counterparts.
        This
        Guarantee Agreement may be executed in counterparts, each of which shall
        constitute an original, but all of which when taken together shall constitute
        a
        single contract, and shall become effective as provided in Section 10.
        Delivery of an executed signature page to this Guarantee Agreement by facsimile
        transmission shall be as effective as delivery of a manually executed
        counterpart of this Guarantee Agreement.

       

      SECTION
        16.   Rules
        of Interpretation.
        The
        rules of interpretation specified in Section 1.03 of the Credit Agreement
        shall be applicable to this Guarantee Agreement.

       

      SECTION
        17.   Jurisdiction;
        Consent to Service of Process. (a)
        The
        Guarantor hereby irrevocably and unconditionally submits, for itself and
        its
        property, to the nonexclusive jurisdiction of any New York State court or
        Federal court of the United States of America sitting in New York City, and
        any
        appellate court from any thereof, in

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      6

       

      any
        action or proceeding arising out of or relating to this Guarantee Agreement
        or
        the other Loan Documents, or for recognition or enforcement of any judgment,
        and
        each of the parties hereto hereby irrevocably and unconditionally agrees
        that
        all claims in respect of any such action or proceeding may be heard and
        determined in such New York State or, to the extent permitted by law, in
        such
        Federal court. Each of the parties hereto agrees that a final judgment in
        any
        such action or proceeding shall be conclusive and may be enforced in other
        jurisdictions by suit on the judgment or in any other manner provided by
        law.
        Nothing in this Guarantee Agreement shall affect any right that the
        Administrative Agent or any other Lender may otherwise have to bring any
        action
        or proceeding relating to this Guarantee Agreement or the other Loan Documents
        against the Guarantor or its properties in the courts of any
        jurisdiction.

       

      (b)
          The
        Guarantor hereby irrevocably and unconditionally waives, to the fullest extent
        it may legally and effectively do so, any objection that it may now or hereafter
        have to the laying of venue of any suit, action or proceeding arising out
        of or
        relating to this Guarantee Agreement or the other Loan Documents in any New
        York
        State or Federal court. Each of the parties hereto hereby irrevocably waives,
        to
        the fullest extent permitted by law, the defense of an inconvenient forum
        to the
        maintenance of such action or proceeding in any such court.

       

      (c)
          Each
        party to this Guarantee Agreement irrevocably consents to service of process
        in
        the manner provided for notices in Section 13. Nothing in this Guarantee
        Agreement will affect the right of any party to this Guarantee Agreement
        to
        serve process in any other manner permitted by law.

       

      SECTION
        18.   Waiver
        of Jury Trial.
        EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
        LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
        DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS
        AGREEMENT OR THE OTHER LOAN DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT
        NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
        EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
        LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT
        IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
        AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE
        MUTUAL
        WAIVERS AND CERTIFICATIONS IN THIS SECTION 18.

       

      SECTION
        19.   Right
        of Setoff.
        If an
        Event of Default shall have occurred and be continuing, each Lender is hereby
        authorized at any time and from time to time, to the fullest extent permitted
        by
        law, to set off and apply any and all deposits (general or special, time
        or
        demand, provisional or final) at any time held and other Indebtedness at
        any
        time owing by such Lender to or for the credit or the account of any Guarantor
        against any or all the obligations of such Guarantor now or hereafter existing
        under this Guarantee Agreement and the other Loan Documents held by such
        Lender,
        irrespective

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      7

       

      of
        whether or not such Lender shall have made any demand under this Guarantee
        Agreement or any other Loan Document and although such obligations may be
        unmatured. The rights of each Lender under this Section 19 are in addition
        to other rights and remedies (including other rights of setoff) which such
        Lender may have.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

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

       

      
        

        
          	ADVANCE AUTO PARTS, INC.
	as Guarantor, 
	 	By: 	 
	 	 	
                  
                    
 
Name:
                    Michael O. Moore

                   
                    Title: Executive Vice President, Chief Financial
                    Officer

                

        

         

         

        
          
            	
                    JPMORGAN CHASE BANK, N.A.,

                    as Administrative Agent,

                  
	 	By: 	 
	 	 	
                    
                      

                    

                      Name: Barry Bergman

                      Title: Managing Director

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