Document:

ex10-65.htm

    

      Exhibit
        10.65

      

      CERTAIN
        PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE
        SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
        TREATMENT. THE SYMBOL “[***]” HAS BEEN INSERTED IN PLACE OF THE PORTIONS SO
        OMITTED.

                                                                                                                                                Execution
        Copy

      

      DELTA
        CONNECTION

      AGREEMENT

      

      

      This
        Delta Connection Agreement (this
        "Agreement"), dated and effective the 27th day of April, 2007 (the “Agreement
        Date”), is among Delta Air Lines, Inc., whose principal address is 1030 Delta
        Boulevard, Atlanta, Georgia  30320 ("Delta"), Pinnacle Airlines Corp.,
        whose principal address is 1689 Nonconnah Boulevard, Suite 111, Memphis,
        TN  38132 (“Parent”) and Pinnacle Airlines, Inc., whose principal
        address is 1689 Nonconnah Boulevard, Suite 111, Memphis, TN  38132
        (“Operator”).

      

      WHEREAS,
        Delta operates the Delta
        Connection program; and

      

      WHEREAS,
        Parent is the owner of all
        of the outstanding capital stock of Operator;

      

      WHEREAS,
        Delta desires Operator to
        operate certain aircraft as a Delta Connection carrier; and

       

              
WHEREAS,
        Operator
        desires for Delta to perform and provide various marketing, schedule and
        fare
        related, and other services for Operator in connection with the Delta Connection
        program; and

      

      WHEREAS,
        Delta is willing to perform
        and provide various marketing, schedule and fare related, and other services
        for
        Operator in connection with the Delta Connection program; and

      

      WHEREAS,
        this Agreement will enhance
        the ability of Operator and Delta to serve the public and the communities
        that
        they serve or may choose to serve; and

      

      WHEREAS,
        Parent will cause Operator
        to perform its obligations under this Agreement pursuant to the terms and
        conditions of Article 27 below and the other terms and conditions
        hereof;

      

      NOW,
        THEREFORE, for and in
        consideration of the foregoing premises and the mutual undertakings set forth
        herein and other good and valuable consideration, the receipt and sufficiency
        of
        which are hereby acknowledged, Delta and Parent (on behalf of itself and
        Operator), intending to be legally bound, hereby agree as follows:

      

      ARTICLE 1.  FARES AND RULES PUBLICATION.

      

      A.  Delta
        Connection Program and Appointment of Delta as Agent.  Operator
        hereby appoints Delta as its agent to publish its fares, schedules and related
        information under Delta’s two letter flight designator code in city pairs
        specified by Delta on (i) the sixteen (16) CRJ-900 aircraft set forth on
        Exhibit A attached hereto (the “Initial Aircraft”), (ii) up to an
        additional [***] CRJ-900 aircraft, in Delta’s sole discretion, when, as and if
        Delta elects to add any such aircraft to Operator’s Delta Connection fleet under
        this Agreement, provided Delta provides Operator with at least one hundred
        twenty days (120) prior written notice of any such election and (iii) any
        other
        aircraft subsequently agreed by the parties to be operated by Operator within
        the Delta Connection program (collectively, the “Aircraft”), and Delta hereby
        accepts such appointment.  Delta hereby grants Operator the authority
        to operate as a Delta Connection carrier, and Operator hereby accepts such
        grant, to conduct air transportation operating the Aircraft utilizing certain
        services together with certain trademarks and service marks owned by Delta
        or
        which Delta has the right to use, all as provided herein.

       

      B.  Fares,
        Rules and Seat Inventory.  Delta, in its sole discretion, shall
        establish and publish all fares and related tariff rules for all seats, cargo
        and freight on the Aircraft, including fares and rules for local traffic
        in the
        city pairs served by such Aircraft.  In addition, Delta will control
        all seat inventory and revenue management (including non-revenue passenger)
        decisions for the Aircraft.

       

      C.  Schedules
        Publication.  Delta, in its sole discretion, shall establish and
        publish all schedules for the Aircraft, including city-pairs served,
        frequencies, and timing of scheduled departures, taking into consideration
        the
        Aircraft type, maintenance requirements, crew scheduling requirements, aircraft
        rotation requirements and applicable route, slot or other regulatory
        restrictions.  So that the information can be properly disseminated to
        Operator for pilot and flight attendant staffing, and related operational
        requirements, Delta will, from time to time, notify Operator of the preliminary
        schedule times, frequencies and related information for the Aircraft no later
        than seventy-five (75) days prior to the commencement of such
        schedule.  Operator shall provide to Delta the proposed block times
        for the Aircraft, Aircraft performance analysis on operational items such
        as
        passenger and baggage limitations (together with relevant assumptions) and
        airfield appropriateness applicable to airports specified in Delta’s request for
        each of the city pair proposed by Delta no later than fourteen (14) days
        of
        Operator’s receipt of the preliminary schedule times provided by
        Delta.   Notwithstanding the above, upon written notice to
        Operator, Delta may assume responsibility for establishing the Aircraft block
        times.  Regardless of whether Delta or Operator establishes the
        Aircraft block times, such block times shall be based on a block time
        reliability rate of between [***] and [***] or the block time reliability
        rate
        used for scheduling Delta mainline service, whichever is greater.  No
        later than [***] days prior to the commencement of such schedule, Delta will
        notify Operator of the final schedule times, frequencies and related information
        for the Aircraft.  Where practical, Delta will collaborate with
        Operator to determine mutually optimal schedules.  Operator shall
        operate the Aircraft in the city pairs designated by Delta, subject to the
        frequency and other scheduling requirements established by Delta from time
        to
        time.  In addition, it is agreed and understood that Delta may utilize
        and schedule any of the Aircraft to perform various charter operations on
        behalf
        of Delta as can be reasonably accommodated by Operator, including without
        limitation after taking into consideration Operator’s maintenance requirements
        for the Aircraft.

      

      Notwithstanding
        anything to the contrary in this Agreement, except for maintenance servicing
        (with no revenue passengers), in no event shall any Delta Connection Flights
        be
        scheduled, nor shall Operator operate any Delta Connection Flights, in or
        out of
        [***].

      

      D.  In-Service
        Schedule.  Operator hereby covenants and agrees that the Aircraft
        shall be available to be placed into service as contemplated by this Agreement
        no later than the dates set forth on Exhibit A-1.  In addition to any
        other rights and remedies Delta may have under this Agreement, in the event
        that
        any Aircraft is not ready to be placed into service as contemplated by this
        Agreement by the applicable date set forth on Exhibit A-1 as a result of
        any
        action or inaction of Operator or Parent, Operator shall pay Delta an amount
        of
        [***] per day that each such Aircraft is late in being available to be placed
        into such service, up to a maximum of [***]  per
        Aircraft.  If any Aircraft is more than thirty (30) days late being
        placed into service past the applicable dates set forth on Exhibit A-1 as
        a
        result of any action or inaction of Operator or Parent, then Operator and
        Parent
        shall be deemed in material breach of this Agreement, and Delta, in addition
        to
        any other rights and remedies Delta may have under this Agreement, Delta
        shall
        have the right to immediately terminate this Agreement, upon written notice
        to
        Operator, at any time prior to such Aircraft being placed into Delta Connection
        service pursuant to this Agreement.  Upon any such termination of this
        Agreement by Delta, Operator shall not owe any amounts to Delta pursuant
        to this
        Section 1(D) for any days after the effective date of such
        termination.

      

      E.  Spare
        Aircraft.  Notwithstanding anything in this Article 1 or elsewhere in
        this Agreement to the contrary, one of the sixteen (16) CRJ-900 initial Aircraft
        set forth on Exhibit A attached hereto shall be designated as a spare aircraft,
        which will not be scheduled for Delta Connection Flights but may be used
        by
        Operator to replace another Aircraft in the operation of a Delta Connection
        Flight that otherwise would be cancelled and/or used to meet applicable
        maintenance requirements.

      

      ARTICLE
        2.  LIMITATION OF USE.

      

      A.  Operator
        agrees that, except as otherwise directed or approved in writing by Delta,
        in
        Delta’s sole discretion, (i) the Aircraft may be used only to provide the air
        services contemplated by this Agreement (including charter flights pursuant
        to
        Section 1(C) hereof, the “Delta Connection Flights”), (ii) the Delta Connection
        Flights shall only be operated under Delta’s “DL” flight designator code except
        as otherwise directed by Delta,  and (iii) the Aircraft may not be
        used by Operator for any other purpose including, without limitation, flying
        for
        any other airline, providing charter services other than pursuant to Section
        1(C) hereof, or on Operator’s own behalf.

      

      B.  Without
        the prior written consent of Delta, neither Operator, nor any affiliate of
        Operator, shall use outside the scope of this Agreement any of the services,
        facilities or equipment provided, or caused to be provided, by Delta, or
        an
        affiliate of Delta, to Operator in connection with the Aircraft or the Delta
        Connection Flights.  With respect to any ancillary facilities or
        equipment obtained by Operator pursuant to the terms hereof specifically
        for use
        by Operator in connection with providing the services contemplated by this
        Agreement, or otherwise provided by Delta to Operator for such use, such
        use for
        the benefit of Delta shall have priority over any other use contemplated
        by
        Operator. With respect to facilities, equipment owned, leased or otherwise
        used
        by Operator, Delta shall have the right to designate on a reasonable basis
        and
        from time to time, in which case Operator shall use reasonable commercial
        efforts to use such property to carry out Operator’s obligations under this
        Agreement, provided that Operator shall have no obligation to use such
        designated property if such use would increase Operator’s costs of providing
        such service to Delta or otherwise adversely affect Operator’s performance
        hereunder.  Nothing herein shall obligate Parent or Operator to use
        any ground service equipment, aircraft or aircraft engines hereunder that
        are
        used primarily for the benefit of other operations of Parent or
        Operator.

      

      ARTICLE 3.  COMPENSATION.

      

      Base
        Compensation.  Commencing after the operation of the initial Delta
        Connection Flight, except as set forth elsewhere in this Agreement, in exchange
        for the flying and operation of the Aircraft pursuant to the terms and
        conditions of this Agreement, Delta shall pay Operator the “Base Rate Costs” and
        the “Pass Through Costs” (each as such term is defined below, and collectively,
        the “Direct Costs”) and the “Reimbursable Costs” (as such term is defined
        below), in each case, as relates to the operation of the Delta Connection
        Flights and as determined in accordance with this Agreement. It is understood
        that Direct Costs and other Reimbursable Costs shall be based on market based,
        direct operating costs and generally accepted accounting principles (“GAAP”),
        and specifically exclude any pre-paid expenses except as expressly provided
        herein.  In addition, in any month in which Operator achieves a
        completion rate for the Delta Connection Flights of at least [***] Delta
        shall
        pay Operator a mark-up (the “Base Mark-up”) of [***] of such Direct Costs
        incurred during such month, subject to certain
        exceptions,  limitations and adjustments set forth
        below.  Any Delta Connection Flight operated with no revenue
        passengers or not completed within [***]) hours of its scheduled arrival
        time
        shall be deemed not completed for purposes of determining Operator’s eligibility
        to any Base Mark-up, “Monthly Incentive Compensation” or “Semi-Annual Incentive
        Compensation” (each, as defined below), unless operated at the direction of
        Delta.  In addition, if (i) on a given day a disproportionate number
        of the Delta Connection Flights into or out of the Delta hub airport which
        such
        flights are scheduled to operate vis-à-vis all Delta and Delta Connection
        operated flights into or out of such hub are canceled for weather related
        or Air
        Traffic Control ("ATC") related reasons on such day (a “Disproportionate ATC
        Cancellation”) or (ii) Delta requests operator to cancel one or more Delta
        Connection Flights (a “Delta Directed Cancellation” and together with
        Disproportionate ATC Cancellation, a “Disproportionate Cancellation”), then,
        such Disproportionate Cancellations shall be excluded from the calculation
        of
        Operator’s completion rate for purposes of determining Operator’s eligibility to
        any Base Mark-up, “Monthly Incentive Compensation” or “Semi-Annual Incentive
        Compensation.”  If Delta requests Operator to cancel one or more Delta
        Connection Flights, Operator shall comply with any such request within the
        time
        period reasonably requested by Delta.  In the event Operator does not
        cancel any such Delta Connection Flights (each, an "Operator Non-Cancelled
        Flight"), then each such Operator Non-Cancelled Flight, for purposes of this
        Agreement, shall not be regarded as a completed flight, nor included as a
        Disproportionate Cancellation, and Delta shall not be obligated to pay Operator
        any Base Compensation, incentive compensation, or any other reimbursements
        in
        connection with such Operator Non-Cancelled Flights.  For any Delta
        Directed Cancellation, unless such cancellation becomes an Operator
        Non-Cancelled Flight, Operator shall be compensated for its Direct Costs
        incurred in connection with such Delta Directed Cancellation, other than
        maintenance-related costs set forth on Exhibit B, for which Operator shall
        receive no compensation.

      

      (i)  The
        “Base Rate Costs” shall include certain direct operating costs recorded in
        accordance with generally accepted accounting principles (“GAAP”) incurred by
        Operator in its operation of the Delta Connection Flights.  The Base
        Rate Costs for each of calendar years 2007 through 2015 are set forth on
        Exhibit B attached hereto and incorporated
        herein.    The Base Rate Costs shall be paid on a unit basis
        as set forth on Exhibit B.

      

      (ii)  The
        “Pass Through Costs” shall include the following variable costs incurred by
        Operator in connection with its operation of the Delta Connection Flights
        for
        which Delta shall bear the risk of price and volume fluctuations,
provided that such costs shall be reconciled on a monthly basis to
        reflect the actual costs incurred by Operator:

      

      
        	
                (1)  

              	
                Landing
                  Fees;

              

      

      

      
        	
                (2)  

              	
                Hull
                  Insurance;

              

      

       

      
        	
                (3)  

              	
                Passenger
                  Liability Insurance;

              

      

      

      
        	
                (4)  

              	
                War
                  Risk Insurance;

              

      

      

      
        	
                (5)  

              	
                Fuel
                  Expense – Operator’s actual fuel and into-plane expenses, plus associated
                  taxes (excluding any fuel purchases made, or caused to be made,
                  by Delta
                  for the benefit of Operator); provided, however, any Mark-Up of the
                  Fuel Expense shall assume a price of [***] per gallon fuel
                  price;

              

      

      

      
        	
                (6)  

              	
                Glycol
                  and de-icing services (but not if provided by Delta or an affiliate
                  or
                  designee of Delta);

              

      

      

      
        	
                (7)  

              	
                Catering
                  Costs (but not if provided by Delta or an affiliate or designee
                  of
                  Delta);Security (but not if provided by Delta or an affiliate or
                  designee
                  of Delta);

              

      

      

      
        	
                (8)  

              	
                Property
                  Taxes;

              

      

      

      
        	
                (9)  

              	
                All
                  costs to change the initial Delta Connection livery of any Aircraft
                  pursuant to any request by Delta;

              

      

      

      
        	
                (10)  

              	
                Engine
                  Maintenance Expense, provided such expense shall not, in any event,
                  exceed the per completed block hour rates identified as Heavy Engine
                  and
                  Maintenance Reserve in Exhibit B (or such other amount mutually
                  agreed upon by the parties), unless otherwise required by
                  Delta;

              

      

      

      
        	
                (11)  

              	
                Ground
                  Handling Services, including without limitation all costs and charges
                  specified in the ground handling agreement referenced in Section
                  26(A)
                  below (but not if provided free of charge to Operator by Delta
                  or an
                  affiliate or designee of Delta);
                  and

              

      

      

      
        	
                (12)  

              	
                “Terminal
                  Facility Rent and Use Charges” – Operator’s actual applicable terminal
                  facility rent and use charges (including common use, ramp rent
                  and jet
                  bridge expenses), including without limitation facilities maintenance
                  and
                  operation expenses, but excluding any such rent and use charges
                  if
                  premises are provided by Delta or any affiliate or designee of
                  Delta.

              

      

      

      
        	
                (13)  

              	
                Aircraft
                  Debt Service, provided such expense shall not, in any event, exceed
                  [***] per aircraft per month.

              

      

      

      Notwithstanding
        the foregoing, Pass Through Costs shall not include any late payment charges,
        penalties and/or fees which Operator incurs in connection with the payment
        of
        the expenses listed above.  Estimates of certain of the initial Pass
        Through Costs are set forth on Exhibit B.  Any costs or expense
        not included either as a Pass Through Cost, Reimbursable Cost, Non-Reimbursable
        Cost or Delta Cost shall be deemed a Base Rate Cost.

      

      B.  Reimbursable
        Costs not Subject to Mark-up.  Delta shall reimburse Operator for
        [***] of the costs incurred for the following items (“Reimbursable Costs”), but
        it is expressly agreed that no Mark-Up (including any potential incentive
        compensation as set forth in Section 3(E) below) of such costs shall be paid
        by
        Delta:

      

      
        	
                (1)  

              	
                Any
                  Federal Aviation Administration (“FAA”) or Department of Transportation
                  (“DOT”) fines administered or levied against Operator due to an action
                  or
                  omission principally caused by Delta or an affiliate of
                  Delta.

              

      

      

      C.  Non-Reimbursable
        Costs.  The parties hereby acknowledge and agree that Operator
        shall be solely responsible and Delta shall not be responsible, nor
        reimburse Operator, for any of the following costs:

      

      
        	
                (1)  

              	
                any
                  and all FAA, DOT or any other government or regulatory agency fines
                  administered or levied against Operator due to any action or omission
                  not
                  principally caused by Delta or an affiliate of Delta;
                  and

              

      

      

      
        	
                (2)  

              	
                Passenger
                  amenities costs and other interrupted trip expenses, including
                  without
                  limitation denied boarding compensation, food and lodging expenses
                  and
                  other transportation costs incurred by Operator due to any action
                  or
                  omission principally caused by Operator or an affiliate of Operator;
                  and

              

      

      

      
        	
                 

              	
                (3)  Any
                  Pass Through Costs determined to be unreasonable by Delta, based
                  on then
                  current objective market conditions, provided that Delta shall
                  give
                  Operator at least sixty (60) days advance written notice of any
                  such
                  determination, and discuss such costs with Operator prior to making
                  such a
                  determination.

              

      

      

      D.  Delta
        Costs.  The parties acknowledge and agree that the following costs
        related to Operator’s services hereunder shall be paid directly by Delta and
        shall not be included in the Base Compensation or any incentive compensation
        calculation or payment:

      

      
        	
                (1)  

              	
                Travel
                  agency commissions, if any;

              

      

      
        	
                (2)  

              	
                Credit
                  card fees;

              

      

      
        	
                (3)  

              	
                Reservations
                  handling charges;

              

      

      
        	
                (4)  

              	
                Booking
                  fees;

              

      

      
        	
                (5)  

              	
                Frequent
                  flyer charges;

              

      

      
        	
                (6)  

              	
                Denied
                  boarding costs, except as set forth in Section 3(C)(3)
                  above;

              

      

      
        	
                (7)  

              	
                Advertising;

              

      

      
        	
                (8)  

              	
                Glycol
                  and de-icing services (if provided by Delta or an affiliate or
                  designee of
                  Delta);

              

      

      
        	
                (9)  

              	
                Terminal
                  Facility Rent and use charges, including without limitation facilities
                  maintenance and operations costs (if premises are provided by Delta
                  or an
                  affiliate or designee of Delta);

              

      

      
        	
                (10)  

              	
                Fuel
                  and fuel management expenses (if provided or cause to be provided
                  by Delta
                  or an affiliate or designee of Delta);
                  and

              

      

      
        	
                (11)  

              	
                The
                  cost of any “Support Services” (as defined in Article 8 herein) and any
                  ticketing services, if provided, or cause to be provided, by Delta
                  or an
                  affiliate or designee of Delta.

              

      

      

      E.  Incentive
        Compensation.

      

      
        	
                1.  

              	
                Definitions.  The
                  parties agree that for purposes of this Agreement the following
                  terms
                  shall have the respective meanings as set forth
                  below:

              

      

      

      
        	
                a.  

              	
                “Monthly
                  Incentive Goal” shall mean with respect to each month during the Term, the
                  monthly goals set forth in paragraph 1 of Schedule 3 attached
                  hereto with respect to each of:  (i) completion rate and (ii)
                  on-time arrival (collectively, “Monthly Performance
                  Categories”).

              

      

      

      
        	
                b.  

              	
                “Semi-Annual
                  Goal” shall mean, with respect to each of the semi-annual periods
                  identified in paragraph 2 of Schedule 3 attached hereto, the
                  semi-annual goals set forth therein with respect to each of (i)
                  completion
                  rate, (ii) on-time arrival and (iii) customer satisfaction rating
                  (collectively, “Semi-Annual Performance Categories”) (Semi-Annual
                  Performance Categories and Monthly Performance Categories, collectively,
                  “Performance Categories”).

              

      

      

      
        	
                2.  

              	
                Monthly
                  Incentive Compensation.  In addition to the Base
                  Compensation, Operator shall have the opportunity to earn additional
                  compensation (the “Monthly Incentive Compensation”) based upon its actual
                  performance in the Monthly Performance Categories as compared to
                  the
                  applicable Monthly Incentive Goal.  For each month during the
                  Term of this Agreement, Delta shall pay Operator an additional
                  [***]
                  mark-up of the Direct Costs (subject to the limitations set forth
                  in this
                  Agreement, as calculated monthly based on the actual direct costs
                  incurred
                  by Operator in operating the Delta Connection Flights during such
                  month)
                  for each of the following performance goals that Operator achieves
                  during
                  such month:

              

      

      

      
        	
                (i)  

              	
                Actual
                  completion rate (excluding cancellations due to charter flights
                  pursuant
                  to Section 1(C) hereof and Disproportionate Cancellations) for
                  its Delta
                  Connection Flights equal to or greater than the applicable Monthly
                  Incentive Goal; and

              

      

      

      
        	
                (ii)  

              	
                Actual
                  on-time arrival (A-14) rate for its Delta Connection Flights equal
                  to or
                  greater than the applicable Monthly Incentive
                  Goal.

              

      

      

      
        	
                3.  

              	
                Semi-Annual
                  Incentive Compensation.  In addition to the Base
                  Compensation and the Monthly Incentive Compensation, Operator shall
                  have
                  the opportunity to earn additional compensation (the “Semi-Annual
                  Incentive Compensation”) based upon its semi-annual performance in the
                  Semi-Annual Performance Categories as compared to the Semi-Annual
                  Incentive Goal for each Semi-Annual Performance
                  Category.  During each six-month period (measured from each
                  January 1 through June 30 and July 1 through December 31) during
                  each year
                  of the Term of this Agreement, Delta shall pay Operator a
                  [***]  mark-up of the Direct Costs (subject to the limitations
                  set forth in this Agreement, as calculated based on the actual
                  direct
                  costs incurred by Operator in operating the Delta Connection Flights
                  during such six-month period) for such six-month period for each
                  of the
                  following performance goals that Operator achieves during the applicable
                  six-month period:

              

      

      

      (i)
        Actual Completion rate (excluding cancellations due to charter flights pursuant
        to Section 1(C) hereof and Disproportionate Cancellations) for its Delta
        Connection Flights equal to or greater than the applicable Semi-Annual Incentive
        Goal;

      

      (ii)
        Actual on-time arrival (A-14) rate for its Delta Connection Flights equal
        to or
        greater than the applicable Semi-Annual Incentive Goal; and

      

      (iii)
        Actual semi-annual customer satisfaction rating for its Delta Connection
        Flights
        is greater than the applicable Semi-Annual Incentive Goal.

      

      F.  Margin
        Cap.  Within sixty (60) days after the end of each calendar year
        during the Term, Operator shall provide Delta a certificate (the “Margin
        Certificate”) signed on behalf of Operator by its chief financial officer, that
        states the actual total margin that Operator earned on operating the Delta
        Connection Flights (the “Actual Margin”) during such calendar year, as
        calculated below.  Such Margin Certificate shall include an exhibit
        that fully sets forth Operator’s calculation of its Actual Margin and certify to
        the accuracy of the Actual Margin.  Actual Margin for any given
        calendar year shall be determined, on a pre-tax basis, by subtracting (y)
        Operator’s aggregate actual Direct Costs incurred to operate the Delta
        Connection Flights for such calendar year, excluding all Pass Through Costs
        for
        (i) Aircraft Debt Service and (ii) Engine Maintenance from (z) the total
        payments made by Delta to Operator for such Delta Connection Flights for
        such
        year, including any and all Base Mark-up, Monthly Incentive Compensation
        and
        Semi-Annual Compensation, excluding (i) any credits Operator receives as
        a
        result of any Cost Savings Initiative or Delta Sourcing Initiative pursuant
        to
        Section 3(G) below, (ii) all payments from Delta to reimburse Operator its
        Pass
        Through Costs for (a) Aircraft Debt Expense and (b) Heavy engine maintenance
        and
        other maintenance reserves (the “Total Payments”), and dividing such difference
        by the Total Payments.  In the event that Operator’s Actual Margin is
        greater than [***],
        Operator shall pay Delta an amount equal to the amount necessary to reduce
        the
        Total Payments such that the Actual Margin for such calendar year will equal
        [***].  Any
        payment made pursuant to this Section 3(F) shall be made within thirty (30)
        days
        of Delta receiving the Margin Certificate.

      

      G.  Cost
        Reductions.  At all times during the Term, Operator shall use its
        reasonable commercial efforts to reduce its Direct Costs in the following
        cost
        categories (the “Reducible Costs”):

      

      1.  Base
        Rate Costs:

      

      
        	
                (i)  

              	
                Heavy
                  airframe maintenance;

              

      

      

      
        	
                (ii)  

              	
                Components;

              

      

      

      
        	
                (iii)  

              	
                Hanger
                  lease costs;

              

      

      

      
        	
                (iv)  

              	
                Simulator
                  Costs; and

              

      

      

      
        	
                (v)  

              	
                Crew
                  lodging.

              

      

      

      2.  Pass
        Through Costs:

      

      (i)           Liability
        insurance;

      

      (ii)           Hull
        insurance;

      

      (iii)          War
        risk insurance; and

      

      (iv)          Fuel
        (burn rate reductions).

      

      In
        addition, Delta maintains the right to develop cost savings initiatives which
        will enable Operator to reduce its Reducible Costs (each, a “Cost Savings
        Initiative”).  Provided any such Cost Savings Initiative does not
        materially interfere with or adversely affect other contractual or legal
        obligations of Parent or Operator in existence at such time or materially
        interfere with the Operator’s operational or maintenance standards or
        performance requirements, each as necessary to perform the services contemplated
        by this Agreement, Operator shall use its commercially reasonable efforts
        to
        implement all such Cost Savings Initiatives identified by either Operator
        or
        Delta.

      

      In
        addition, Delta may assist Operator in obtaining goods and services in
        connection with operating the Aircraft and/or the Delta Connection Flights
        in a
        more economical manner, including, without limitation, via bulk purchasing
        and
        inventory management systems and processes (each, a “Delta Sourcing
        Initiative”).  If Delta initiates or identifies any such Delta
        Sourcing Initiative, Operator is obligated to use its reasonable commercial
        efforts to participate in such initiative, but only to the extent that such
        participation would not materially interfere with or adversely affect other
        contractual or legal obligations of Parent or Operator in existence at such
        time
        or materially interfere with the Operator’s operational or maintenance standards
        or performance requirements, each as necessary to perform the services
        contemplated by this Agreement.

      

      A
        baseline for each of the Direct Costs shall be established using (i) with
        respect to Pass Through Costs, the actual Pass Through Costs incurred by
        Operator in connection with operating the Delta Connection Flights during
        the
        previous twelve (12) months and (ii) with respect to Base Rate Costs, Operator’s
        Base Rate Costs set forth on Exhibit B hereto. Any such baseline shall be
        adjusted to reflect situations in which this methodology does not properly
        reflect future costs (e.g. annual escalation, contractual increases and one
        time
        occurrences).  Savings realization will be measured against these
        baselines for purposes of determining the amount of savings to be shared
        among
        Delta and Operator. Baselines shall be reestablished by Delta at the end
        of each
        contract year during the Term.

      

      Realized
        savings associated with each Cost Savings Initiative or Delta Sourcing
        Initiative shall be allocated between the parties as follows:

      

      1.  With
        respect to realized savings for Reducible Costs that are Base Rate Costs,
        Delta
        will retain [***] of the net benefit and Operator will retain
        [***]  of the net benefit throughout the remaining Term of the
        Agreement.  In order to effectuate the cost savings benefit allocation
        contemplated hereby, upon implementation of any such initiative, the applicable
        Base Rate Cost(s) set forth in Exhibit B shall be adjusted and modified
        downward accordingly.  Any realized savings on Base Rate Costs not set
        forth above shall be retained solely by Operator.

      

      2.  With
        respect to realized savings for Reducible Costs that are Pass Through Costs,
        Delta will retain [***]  of the net benefit and Operator will retain
        [***]  of the net benefit throughout the remaining Term of the
        Agreement.  With regard to a Cost Savings Initiative or Delta Sourcing
        Initiative that affects Pass Through Costs, the parties agree to meet and
        confer
        prior to implementation on the appropriate methodology by which Operator
        calculates and retains its portion of realized savings.  Any realized
        savings on any Pass Through Costs not set forth above shall be retained by,
        and
        for the sole benefit of, Delta.

      

      3.  Notwithstanding
        Section 3(G)(1) above, with respect to all maintenance expenses (excluding
        line
        maintenance) initially jointly sourced by Delta and Operator, all savings
        achieved through such sourcing shall accrue to, and for the sole benefit
        of,
        Delta.  In such event, the applicable rates in Exhibit B will be
        revised to reflect the reduced maintenance rates.  Delta and Operator
        shall work together in good faith to timely source any such maintenance services
        prior to the occurrence of the first applicable maintenance event.

      

       

      Operator
        and Delta shall establish a supplier scorecard process to monitor the
        performance and the impact of the Cost Savings Initiatives and Delta Sourcing
        Initiatives.  Notwithstanding anything to the contrary in this
        Agreement, this Section 3(G) shall not require either Parent or Operator
        to
        enter into any particular agreement that would apply to operations of Parent
        or
        Operator other than Delta Connection Flights.

      

      H.  Accounting
        Provisions.  Delta shall retain all revenues (including, without
        limitation, passenger, cargo, mail, food, beverage and duty-free services
        or any
        other revenue including, without limitation, any guaranteed or incentive
        payments from airport, local or municipal authorities in connection with
        scheduling flights to such airport or locality or any federal funds payments)
        in
        connection with the operation of the Delta Connection
        Flights.  Operator shall promptly remit to Delta all monies with
        respect to all airline ticket sales, on-board sales, baggage charges, passenger
        charges, cargo sales and all other revenue collected by Operator or any agent
        or
        employee of Operator in connection with the operation of the Aircraft (including
        credit card transactions).

      

      On
        each
        of the 7th,
        14th, 21st
        and
        28th day of
        each month (or if not a business day, on the following business day) after
        operation of the initial Delta Connection Flight, Delta will advance to Operator
        twenty-five percent (25%) of the estimated monthly Direct Costs and Base
        Mark-Up
        (collectively, the “Base Compensation”).  Such payment shall be made
        via wire transfer or through the Airline Clearing House (the “Clearing House”),
        in Delta’s discretion (but in any event on the dates set forth above) or, if any
        such payment from Delta is not paid on such dates, then in Operator’s
        discretion.  In computing the amount of the advance, Delta will use
        the projected fuel costs, and the estimated number of weekly revenue block
        hours, departures and passengers.

      

      Within
        thirty (30) days following the end of each month, Delta and Operator will
        reconcile the actual Direct Costs incurred by Operator for the Base
        Compensation, the final operating results (including actual performance in
        the
        Performance Categories) of, and actual revenue block hours flown by, Operator
        with the estimated payments made pursuant to the previous paragraph. Within
        five
        (5) business days of completing such reconciliation, Delta or Operator, as
        the
        case may be, shall pay, via wire transfer or the Clearing House in Delta’s
        discretion, to an account designated by the other party, monies equal to
        the
        reconciled amount.  If certain actual costs are not known by the end
        of such 30-day period, Operator shall provide Delta with a good faith estimate
        of such unknown costs and such estimated amount shall be included in the
        initial
        30-day reconciliation.  As soon as commercially reasonable, such
        estimated amounts shall be reconciled with the actual costs for such expenses,
        and  Delta or Operator, as the case may be, shall pay, via wire
        transfer or the Clearing House in Delta’s discretion, to an account designated
        by the other party, monies equal to the reconciled amount.

      

      Notwithstanding
        anything herein to the contrary, in the event Operator is unable to operate
        any
        of the Aircraft, or any of the Delta Connection Flights, for any reason other
        than as a result of weather, fire, war, terrorism, other act of hostilities,
        an
        industry-wide ATC action, an industry-wide directive by the FAA, TSA or other
        governmental agency or act of God, Delta shall not be obligated to pay Operator
        any portion of the Base Compensation, Base Mark-up, incentive compensation,
        or
        any other amounts, in connection with such non-operated Aircraft and Delta
        Connection Flights.  If the non-operated Aircraft or Delta Connection
        Flight is caused by weather, fire, war, terrorism, other act of hostilities,
        an
        industry-wide ATC action, an industry-wide directive by the FAA, TSA or other
        governmental agency or act of God, Delta shall only be obligated to pay
        Operator’s the following fixed costs associated with the non-operated Aircraft
        or Delta Connection Flight:  Aircraft Debt Service, Hull Insurance and
        Property Taxes, but not any variable costs, Base Mark-up, incentive
        compensation, or any other amounts with respect to such non-operated Aircraft
        and Delta Connection Flights during the period that Operator is unable to
        operate such Aircraft or the Delta Connection Flights.

      

      I.  Audit
        of Costs, Operations and Service Levels.  Operator shall maintain
        complete and accurate books and records to support and document all revenues,
        costs and expenses related to the Aircraft and its Delta Connection operations
        hereunder, in accordance with generally accepted accounting principles
        consistently applied and in accordance with the accounting policies and
        procedures used by the parties to develop the Direct Costs.  Delta’s
        in-house finance staff and any independent consultants selected by Delta
        shall
        be entitled, following reasonable notice to Operator, to audit and inspect
        Operator’s books and records relevant to the services provided hereunder, the
        service levels achieved, and the determination of charges due pursuant to
        this
        Agreement for the sole purposes of (i) prospectively adjusting the Base Rate
        Amount in connection with any annual review pursuant to Section 3(G) hereof
        and/or (ii) auditing Reimbursable Costs, Pass Through Costs, Other Reimbursable
        Costs, any Mark-up or incentive compensation due or paid hereunder and the
        Margin Cap.  Any such audit will be conducted during regular business
        hours and be paid for by Delta unless such audit determines that Operator
        owes
        Delta in excess of [***], in which case Operator shall pay Delta the costs
        and
        expenses incurred by Delta in connection with such audit.

      

      J.  Right
        of Set-off.  Any party may offset against any payment to be made
        to any other party hereto (including the next scheduled payment by Delta
        to be
        made pursuant to Section 3(H) above) the amount of any payment that such
        other
        party or any of its affiliates owes to such first party or any of its affiliates
        but has not made when due (taking into account any cure period), unless such
        overdue payment is subject to a good faith dispute.

      

      ARTICLE 4.  
        TICKETING SERVICES; SIGNAGE; FACILITIES; SLOTS AND ROUTES.

      

      A.  Ticketing
        Services.  Either Delta or Operator will provide primary airport
        ticketing services in connection with the Delta Connection Flights, and,
        if
        applicable, the other party will provide supplemental ticketing services
        for the
        Delta Connection Flights at Delta's airport ticketing locations and will
        use
        Delta ticket stock for such purposes.

      

      B.  Signage.  Unless
        otherwise agreed by the parties, Delta will design, provide and pay for
        appropriate airport and other signage installed after the Effective Date
        to
        reflect the Delta Connection and the relationship between Operator and
        Delta.  The nature and type of such signage will be in the sole
        discretion of Delta, subject to any airport, governmental or quasi-governmental
        restrictions or requirements, and to any contractual or other obligations
        of
        Parent or Operator, and the location of such signage will be limited to
        passenger-related facilities from which Parent or Operator provides services
        to
        Delta hereunder.  Delta will be responsible for installing and
        maintaining all such signage, but the parties will mutually determine which
        party will obtain any necessary formal or informal approvals from appropriate
        airport or other authorities to install such signage.  The parties
        will fully cooperate with each other in all endeavors relating to such signage
        and any necessary approvals.

      

      C.  Facilities.

      

      (1)  In
        connection with the
        Delta Connection Flights, and subject to clause (2) below, Operator shall
        use
        the gates and facilities designated by Delta from time to time at the locations
        in which Operator operates such Delta Connection Flights. No other use of
        such
        gates and other facilities by Operator or parties other than Delta shall
        be
        allowed without Delta’s express written consent.

      

      (2)  Delta’s
        right to
        designate gates and other facilities to be used by Operator in connection
        with
        providing Delta Connection Flights shall include the right at each airport,
        in
        Delta’s discretion, to either: (a) provide for use of some or all of the needed
        facilities to Operator through mutually acceptable subleases, ground handling
        agreements, licenses, permits or otherwise; or (b) require Operator to directly
        obtain use of passenger-related and aircraft-related facilities used or to
        be
        used exclusively for Delta Connection Flights from the airport operator or
        other
        lessors, and shall not include the right to designate gates or other facilities
        then used by Operator for operations other than Delta Connection
        Flights.   Delta and Operator agree that Delta may relocate Operator
        to comparable facilities at the service locations, provided that Delta
        reimburses Operator for its reasonable relocation expenses.

      

      (3)  Operator
        shall use its
        reasonable commercial efforts to ensure that all leases, subleases, permits,
        licenses and other use agreements of airport terminal facilities entered
        into by
        Operator for use exclusively in connection with Delta Connection Flights
        (each,
        a “Facility Lease” and collectively, “Facilities Leases”) shall be assignable to
        Delta or Delta’s designee, at Delta’s election, without the consent of the other
        party to such Facility Lease on termination of this Agreement, the withdrawal
        of
        Delta Connection Flights from such airport or upon written notice from Delta
        to
        Operator, provided that if the consent of the facility lessor is required
        by contract or governmental regulations, Operator will use its reasonable
        commercial efforts to obtain such consent at the time the Facility Lease
        is
        entered into and to incorporate such consent in the terms of the Facility
        Lease
        or otherwise at such time as Delta may direct.  Subject only to
        Operator obtaining any necessary consent of such other party, Operator shall
        assign to Delta or Delta’s designee (i) all Facilities Leases upon termination
        of this Agreement, (ii) all Facilities Leases at a particular airport upon
        the
        withdrawal of all Delta Connection Flights from such airport, and (iii) such
        Facilities Leases as Delta shall designate at any time upon receipt of written
        notice from Delta. If Delta elects and if the other party to the Facilities
        Lease agrees, instead of an assignment, any such transfer can be accomplished
        by
        either: (x) a termination of the applicable Operator Facilities Lease and
        a
        direct lease of such premises to Delta or Delta’s designee; or (y) a release of
        premises designated by Delta from the applicable Operator Facility Lease
        and
        lease of such premises directly to Delta or Delta’s designee.

      

      (4)  Operator
        shall use its
        reasonable commercial efforts to ensure that all Facilities Leases entered
        into
        by Operator shall expressly provide that Delta or Delta’s designee, at Delta’s
        election, shall have the right to sublease any or all of the premises covered
        by
        the applicable Facilities Lease without the consent of the other party to
        such
        Facility Lease on termination of this Agreement, the withdrawal or reduction
        of
        Delta Connection Flights from such airport or upon written notice from Delta
        to
        Operator, provided that if the consent of the facility lessor is required
        by contract or governmental regulations, Operator will use its reasonable
        commercial efforts to obtain such consent at the time the Facility Lease
        is
        entered into and to incorporate such consent in the terms of the Facility
        Lease
        or otherwise at such time as Delta may direct.  Subject only to Operator
        obtaining any necessary consent of such other party, Operator shall, at Delta’s
        option, sublease the premises Delta specifies under any applicable Facilities
        Lease to Delta or Delta’s designee on termination of this Agreement, the
        withdrawal of Delta Connection Flights from such airport or upon receipt
        of
        written notice from Delta.  If Delta or Delta’s designee enters into
        such a sublease, at Delta’s option, Operator shall enter into a sub-sublease of
        all or the portion of the subleased premises that Delta designates.

      

      (5)  In
        addition to Delta’s
        other options with respect to premises occupied by Operator pursuant to any
        Facilities Lease, sublease or sub-sublease, Delta shall have the right from
        time
        to time to direct Operator to handle or allow Delta to handle other carriers
        designated by Delta at any such premises.  If Operator is the handling
        carrier, it will do so on terms consistent with the applicable Facilities
        Lease
        and handling arrangements and fees reasonably acceptable to Delta and
        Operator.

      

      (6)  Operator
        shall not
        assign, transfer, sublease, alter, amend, modify or terminate any Facilities
        Lease to which it is a party without the prior written consent of
        Delta.

      

      (7) Notwithstanding
        anything to the contrary in this Agreement, Delta may, at its option, elect
        to
        enter the Facilities Lease in lieu of Operator for any facilities to be used
        by
        Operator at any new or existing city to be served by Operator pursuant to
        this
        Agreement, and in the event Delta exercises this option (i) Delta shall enter
        into a Facilities Lease with the lessor of such facilities, (ii) Operator
        shall
        utilize such facilities pursuant to a sublease, license agreement, permit,
        facilities use agreement or ground handling agreement with Delta, (iii) at
        Delta’s option, the sublease, facilities use agreement or ground handling
        agreement shall terminate when Operator ceases to operate Delta Connection
        Flights at the airport, and (iv) Delta shall enter into agreements for
        facilities which are reasonably suitable for Operator’s operational needs. If
        for any reason Delta fails to provide such facilities, such failure shall
        not be
        a breach hereof and Operator shall be obligated to secure such facilities
        within
        a reasonable period of time.

      

      (8)  At
        any location in
        which Operator is the signatory carrier of the applicable Facility Lease,
        Operator shall vote as directed by Delta on any matters submitted to the
        signatory carriers for a vote.

      

      (9)  Operator
        shall comply
        with all requirements of such Facilities Leases, subleases and sub-subleases
        described in this Section 4(C) and an event of default by Operator under
        any
        such agreements for a material Facilities Lease shall be a breach of this
        Agreement.  If Operator receives any notice of default or breach with
        respect to any Facilities Lease, Operator shall promptly provide a copy to
        Delta, consult with Delta on handling and advise Delta on Operator’s plans for
        resolving the matter.

      

      D.  Slots
        and Route Authorities.  During the Term of this Agreement
        (including any renewal terms) or upon the expiration or termination of this
        Agreement, Delta may, in its sole discretion, require Operator to transfer
        to
        Delta or its designee at no charge any airport takeoff or landing slots,
        route
        authorities or other regulatory authorities as Delta shall designate which
        were
        obtained and have been or are being used for Delta Connection Flights under
        this
        Agreement, provided that Operator shall not be required to acquire any airport
        takeoff or landing slot, route authority or other regulatory authority without
        the acquisition cost paid by Operator, if any, being treated as a Pass Through
        Costs under this Agreement.

      

      ARTICLE 5.  CUSTOMER SERVICES.

      

      A.  Operator
        will handle all customer related services in connection with the Delta
        Connection Flights in a professional, businesslike and courteous
        manner.  In order to ensure a high level of customer satisfaction for
        the Delta Connection Flights, Operator will (i) establish and maintain customer
        handling procedures and policies for the Delta Connection Flights that are
        substantially similar to those utilized by Delta (“Customer Service Policies”)
        and (ii) establish, maintain and enforce employee conduct, appearance and
        training standards and policies for the Delta Connection Flights that are
        substantially similar to those used by Delta.  All uniforms worn by
        Operator employees on the Delta Connection Flights and by any Operator employees
        providing support services in connection with such flights shall be subject
        to
        the prior approval of Delta and shall at all times be consistent with Delta’s
        existing uniform standards.

      

      B.  Operator
        and Delta will periodically meet to discuss and review Operator's customer
        handling procedures and policies for the Delta Connection Flights to ensure
        compliance with this Article 5.  Each party will seek to set forth
        concerns and complaints under this Article 5 in writing to the other
        party.  To the extent Delta advises Operator of any deviation from
        Article 5(A) hereof, the parties shall meet to mutually determine appropriate
        solutions and to agree to the terms of a corrective action plan and the timing
        of its implementation.  In the event Operator shall fail, in any
        material respect, to adopt or implement any such agreed corrective action
        plan
        in the time period described therein, any such failure may be deemed a material
        breach of this Agreement.

      

      C.  Operator
        shall adopt as its own, for the Delta Connection Flights, Delta’s Terms and
        Conditions of Contract of Carriage (“Contract of Carriage”), baggage liability
        policies and denied boarding compensation policies, each as amended from
        time to
        time, and be bound by their respective terms with respect to its operation
        of
        Delta Connection Flights.

      

      ARTICLE 6.                          [RESERVED].

      

      ARTICLE
        7.  FREQUENT FLYER PARTICIPATION.  During the Term of
        this Agreement, the parties agree that passengers on Operator’s Delta Connection
        Flights will be eligible to participate in the Delta SkyMiles frequent flyer
        program, as may be amended from time to time, or any other similar program
        developed by Delta (the “Program”) and all Program award tickets will be honored
        for travel on Delta Connection Flights on the following terms and
        conditions:

      

      A.  Administration.  Administration
        of the Program shall be performed by and at the cost of Delta.  Delta
        will promote and administer the Program.

      

      B.  Program
        Information.  Title and full and complete ownership rights to
        Program membership data and information developed by Delta, wherever located,
        shall remain with Delta or an affiliate of Delta.  Operator
        understands and agrees that such data and information constitutes Delta’s (or
        its affiliates’) proprietary information.  Any membership lists,
        labels, data, or other compiled membership information supplied to Operator
        in
        any form and any and all copies thereof are to be used by Operator exclusively
        in the performance of its obligations under this Agreement and will not be
        otherwise used, sold, licensed, leased, transferred, stored, duplicated or
        transmitted, in any form or by any means, without Delta’s prior written
        consent.  All such information will either be returned to Delta or
        destroyed at Delta’s request.

      

      C.  Accrual
        and Redemption.  Passengers on the Delta Connection Flights shall
        be eligible to accrue and redeem Program mileage on such
        flights.  Passengers traveling pursuant to award travel under the
        Program shall be considered passengers for all purposes under this
        Agreement.

      

      ARTICLE
        8.  SUPPORT SERVICES.  Notwithstanding anything to the
        contrary in this Agreement, from time to time during the Term, Delta may,
        at is
        sole discretion, require Operator to utilize Delta, an affiliate of Delta
        or a
        another third party designated by Delta for certain services or products
        including, without limitation, catering and on-board provisioning; aircraft
        and
        engine maintenance and ground handling (collectively, “Support Services”),
        provided such services and products are not more costly to Operator than
        the
        alternative services or products they are replacing or would replace and
        do not
        materially interfere with the operational or maintenance standards or
        performance requirements of Operator, each as necessary to perform the services
        contemplated by this Agreement. or adversely affect other contractual or
        legal
        obligations of Parent or Operator in effect at such time.

      

      ARTICLE
        9.  AUTOMATION SERVICES.   Delta may provide
        Operator the following automation and related services for the Delta Connection
        Flights, and if provided by Delta, Operator agrees to participate in such
        services in the manner and subject to the conditions described
        below.

      

      A.  Internal
        Reservations Equipment.  Delta shall provide or arrange for the
        provision to Operator of an electronic reservations system (currently referred
        to as “Deltamatic” but including any successor reservations system adopted by
        Delta) and shall provide Operator with: (i) the ability to access passenger
        name
        records, (ii) automated ticketing capabilities, (iii) operational messaging
        switching capabilities, (iv) the ability to update Delta Connection Flight
        information, (v) the ability to distribute flight releases and weather packages,
        and (vi) perform other reservations-related functions for the Delta Connection
        Flights (Deltamatic and any successor system are hereinafter referred to
        as the
“Res System”).  Delta reserves the right to modify the functionality
        of the Res System at any time.  Operator will use the Res System made
        available by Delta for the Delta Connection Flights only.

      

      B.  Delta’s
        Rights and Obligations.

      

      1.  Delta
        will install or
        cause to be installed the equipment requested by Operator at the locations
        set
        forth on Exhibit C to this Agreement and shall provide Operator
        connection to the Res System.  The equipment described on Exhibit
        C and any software installed on the Equipment at the time of its delivery
        to
        Operator is hereinafter referred to as the “Equipment.”  Operator
        understands and agrees that: (i) all Equipment shall remain the sole property
        of
        Delta; (ii) Operator shall not remove any identifying marks from the Equipment;
        (iii) Operator shall not subject the Equipment to any lien (other than lessor’s
        liens or other liens generally applicable to equipment installed at such
        locations); and (iv) Delta may enter Operator’s premises to remove the Equipment
        immediately upon termination of this Agreement.  Exhibit C may
        be amended from time to time by mutual agreement of the parties to reflect
        the
        installation, removal or relocation of Equipment.

      

      2.  Delta
        will provide
        initial and recurrent training to Operator training staff and other key
        designated personnel in the use of the Res System, at Delta’s training centers
        unless otherwise agreed.  Delta may remove from a training program any
        Operator employee who is not satisfactorily participating therein.

      

      3.  Delta
        will promptly
        provide, or arrange to provide, all repairs and maintenance services required
        for the Equipment and will use reasonable business efforts to keep the Equipment
        and the Res System in good repair and condition.  Operator will not
        perform or attempt to perform repairs or maintenance of any kind on the
        Equipment without prior consultation with Delta and will promptly contact
        Delta
        regarding the need for repairs or maintenance.

      

      C.  Operator’s
        Rights and Obligations.

      

      1.  Operator
        will not for any
        reason relocate or remove any of the Equipment without Delta’s prior written
        consent.  Delta will pay all costs associated with the installation,
        relocation, purchase, regular maintenance, repair (other than for loss or
        damage
        for which is Operator is responsible) or removal of Equipment.

      

      2.  Operator
        will use the
        Equipment and the Res System in strict conformity with the training and
        operating instructions provided by, or arranged to be provided by,
        Delta.  Without limiting the generality of the foregoing, unless
        authorized by Delta, Operator will not use the Res System to develop or publish
        any reservation, ticketing, sales, cargo, tariff or other guide, to provide
        services not authorized by this Agreement to third parties, to train persons
        other than Operator’s employees in the use of the Equipment or the Res System,
        or for other uses designated by Delta in writing as
        prohibited.  Operator may not publish, disclose or otherwise make
        available to any third party the compilations of air carrier service or fares
        obtained from the Res System; provided, however, that Operator may use
        specific air carrier service and fare data for the benefit of its
        customers.

      

      3.  Operator
        will encourage
        and allow its employees using the Res System to attend training sessions
        related
        to the Res System, and it is Operator’s responsibility to ensure that each
        employee using the Res System receives full and adequate training on the
        Res
        System.

      

      4.  Operator
        will use its
        reasonable commercial efforts to protect the Equipment from loss, damage
        or
        theft and to prevent its unauthorized use or improper
        operation.  Operator will make no alterations to the Equipment and
        will return the Equipment to Delta upon the termination of this Agreement
        in the
        same condition as received, excepting only ordinary wear and tear in the
        normal
        course of Operator’s operations.  Operator will obtain and maintain
        insurance for the Equipment against all risks of damage and loss, including
        without limitation loss by fire, theft and such other risks of loss as are
        customarily insured in a standard all-risk policy.  Such insurance
        shall also provide the following:

      

      (a)  Full
        replacement value
        coverage for the Equipment (subject to policy deductibles);

      

      (b)  An
        endorsement naming
        Delta as the loss payee to the extent of its interest in the Equipment;
        and

      

      (c)  An
        endorsement requiring
        the insurer to give Delta at least thirty (30) days prior written notice
        of any
        intended cancellation, nonrenewal or material change of coverage;
provided that only ten (10) days prior written notice of cancellation,
        nonrenewal or material change of coverage need be given in the event that
        such
        cancellation, nonrenewal or material change in coverage is caused solely
        by
        failure to make a premium payment.

      

      Upon
        request by Delta, Operator will promptly provide satisfactory evidence of
        the
        insurance required pursuant to this Section 9(C)(4).  Notwithstanding
        the foregoing, Operator shall be liable to Delta for any loss or damage to
        the
        Equipment, regardless of cause, occurring while the Equipment is in the
        possession, custody or control of Operator.

      

      5.  Operator
        waives any
        proprietary rights that it may have with respect to information entered into
        the
        Res System.

      

      D.  Entry
        and Inspection.  Persons designated or authorized by Delta may
        enter Operator’s premises during normal business hours for the purposes of (a)
        monitoring, inspecting, and reviewing Operator’s use of and operations with
        respect to the Res System, (b) performing repairs or maintenance on the
        Equipment, (c) installing, removing, replacing or relocating the Equipment
        (unless otherwise permitted by this Agreement), or (d) training or retraining
        Operator’s employees in the use of the Res System; provided that such
        activities may not unreasonably interfere with Operator’s business.

      

      E.  Limitations
        on Liability.  In addition to any other limitations on liability
        set forth herein:

      

      1.  Neither
        Parent, Operator
        nor Delta is responsible for errors or inaccuracies in the availability records,
        fare quotes, or other information contained in the Res System at any time,
        for
        any planned or unplanned interruptions, delays or malfunctions in the operation
        of the Res System or the Equipment or for the merchantability or fitness
        for a
        particular purpose of any of the data or Equipment made available to
        Operator.

      

      2.  EXCEPT
        AS SET FORTH IN
        PARAGRAPH F BELOW, EACH OF PARENT, OPERATOR AND DELTA HEREBY WAIVES AND RELEASES
        THE OTHER PARTIES AND THEIR AFFILIATES AND THEIR RESPECTIVE DIRECTORS, OFFICERS,
        EMPLOYEES AND AGENTS FROM ANY AND ALL OBLIGATIONS AND LIABILITIES AND ALL
        OF
        THEIR RIGHTS, CLAIMS AND REMEDIES AGAINST THE OTHER PARTIES OR THEIR AFFILIATES
        OR ANY OF THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS, EXPRESS
        OR
        IMPLIED, ARISING BY LAW OR OTHERWISE, DUE TO ANY DEFECTS OR INTERRUPTIONS
        OF
        SERVICE IN, OR ERRORS OR MALFUNCTIONS BY, SOFTWARE, THE EQUIPMENT, THE RES
        SYSTEM OR ITS USERS, INCLUDING ALL LIABILITY, OBLIGATION, RIGHT, CLAIM, OR
        REMEDY IN TORT, AND INCLUDING ALL LIABILITY, OBLIGATION, RIGHT, CLAIM OR
        REMEDY
        FOR LOSS OF REVENUE OR PROFIT OR ANY OTHER DIRECT, INDIRECT, INCIDENTAL,
        SPECIAL
        OR CONSEQUENTIAL DAMAGES.  FURTHER, DELTA DISCLAIMS AND EACH OF
        PARENT AND OPERATOR HEREBY WAIVES ANY WARRANTIES, EXPRESS OR IMPLIED, INCLUDING
        BUT NOT LIMITED TO ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR INTENDED
        USE
        RELATING TO THE RES SYSTEM, THE EQUIPMENT, DATA, OR SERVICES FURNISHED
        HEREUNDER.

      

      F.  Patent
        and Copyright Indemnity.  Delta will indemnify each of Parent and
        Operator, its Affiliates and their respective directors, officers, employees
        or
        agents, against, and will defend or settle, at its own expense, any action
        brought against Parent, Operator or their Affiliates or any of their respective
        directors, officers, employees or agents, to the extent that it is based
        on, a
        claim that the Res System provided by Delta pursuant to this Agreement, in
        its
        normal use, or any part thereof, infringes any U.S. copyright or patent;
        and
        Delta will pay those costs, damages and attorney's fees finally awarded against
        Parent, Operator or their Affiliates or any of their respective directors,
        officers, employees or agents in any such action attributable to any such
        claim,
        but such defense, settlements and payments are conditioned on the
        following:  (1) the provisions of Section 12(C) below, including those
        relating to notice and control of defense, shall apply; (2) that Parent and
        Operator shall cooperate with Delta in a reasonable way to facilitate the
        settlement or defense of such claim, provided that Delta shall pay all of
        Parent’s and Operator’s reasonable expenses in connection with any such
        cooperation requested by Delta; and (3) should such Res System become, or
        in
        Delta’s opinion be likely to become, the subject of such claim of infringement,
        then Operator shall permit Delta, at Delta’s option and expense, either to (a)
        procure for Operator the right to continue using the Res System, or (b) replace
        or modify the same so that it becomes noninfringing and functionally equivalent,
        or (c) upon failure of (a) and (b) above despite the reasonable efforts of
        Delta, accept immediate termination of this Agreement as it relates to such
        system.  This paragraph (F) states the entire liability of Delta with
        respect to the infringement of copyrights and patents by the Res System provided
        hereunder or the operation thereof.

      

      ARTICLE
        10.  OPERATIONAL PERFORMANCE REQUIREMENTS.

      

      A.  Operator
        agrees to provide the following information to Delta for each day during
        the
        Term of this Agreement on the next business day after the applicable day;
        provided, however, the information in sub-paragraph (iv) shall be
        provided by Delta to Operator on a monthly basis within ten (10) days after
        the
        last day of each such month:

      

      (i)  The
        number of
        mishandled bags per 1,000 passengers (including, without limitation,
        international and non-revenue passengers) flown on Delta Connection Flights
        during such day based on the information available in the World Tracer System
        (or similar or successor system used by Operator).

      

      (ii)  The
        completion rate (actual) of the Delta Connection Flights during such day.
        Unless
        revised in accordance with Section 10(C) below, Operator shall maintain a
        completion rate as set forth on Schedule 10 attached hereto and made a
        part hereof.  For purposes of this Agreement, Delta Connection Flights
        operated with no revenue passengers or completed over four (4) hours late
        shall
        be considered as cancelled.

      

      (iii)  The
        number of
        scheduled Delta Connection Flights that do not arrive at their scheduled
        destination prior to 15 minutes after their respective scheduled arrival
        times
        during such day. Unless revised in accordance with Section 10(C) below, Operator
        shall maintain a percentage of on-time arrivals as set forth on Schedule
        10 attached hereto and made a part hereof.

      

      (iv)  Operator’s
        overall
        customer satisfaction rating as complied and reported by the Customer
        Satisfaction Monitor, or any successor thereto or replacement
        thereof.  Unless revised in accordance with Section 10(C) below,
        Operator shall maintain a customer satisfaction rating as set forth on
Schedule 10 attached hereto and made a part hereof.

      

      B.  Each
        of the requirements set forth on Schedule 10 shall be defined as the
“Operational Performance Standards.”  If Delta is concerned about
        Operator’s performance in connection with any of the Operational Performance
        Standards set forth on Schedule 10, Operator agrees to discuss with Delta
        such performance and potential ways to improve such performance at Delta’s
        request.  The parties shall have ten (10) days to determine
        appropriate solutions and/or a corrective action plan, and Operator agrees
        to
        diligently comply with the terms and conditions of any such solutions and
        corrective action plans that are mutually agreed by the parties.

      

      C.  The
        parties recognize and agree that the Operational Performance Standards set
        forth
        on Schedule 10 may be modified or adjusted by mutual agreement of the
        parties hereto from time to time during the Term of this Agreement.

      

      D.
        Delta
        shall provide to Operator information and other data in its possession relating
        to the (i) number of mishandled bags, (ii) denied boarding, (iii) disability
        complaints and (iv) DOT complaints for the Delta Connection Flights operated
        by
        Operator submitted to, or retained pursuant to regulations promulgated by,
        the
        U.S. Department of Transportation.

      

      ARTICLE 11.  TERM AND TERMINATION.

      

      A.           This
        Agreement shall commence as of the Agreement Date and shall terminate upon
        the
        last of the dates described in the following sentence, unless the Agreement
        is
        terminated earlier in accordance with its terms (such period, and any extension
        or renewal thereof, the “Term”).  As to any particular Aircraft,
        unless this Agreement is terminated earlier in accordance with its terms,
        this
        Agreement shall terminate (x) with respect to each Aircraft described in
        clauses
        (i) and (ii) of Article 1 Section A, upon the tenth (10th) anniversary
        of
        the initial in-service date of such Aircraft, and (y) with respect to any
        Aircraft described in clause (iii) of Article 1 Section A, upon such date
        as
        shall be mutually agreed by Delta and Operator.  Notwithstanding the
        above, at any time on or after the [***] anniversary of the Agreement Date,
        either party shall have the right to remove up to [***] of the Aircraft capacity
        from the scope of the Agreement each year during the Term
        thereafter.

      

      B.  Notwithstanding
        the provisions of Section 11(A), either party may terminate this Agreement
        immediately if the other party files a voluntary petition in bankruptcy,
        makes
        an assignment for the benefit of creditors, fails to secure dismissal of
        any
        involuntary petition in bankruptcy within sixty (60) days after the filing
        thereof, or petitions for reorganization, liquidation, or dissolution under
        any
        federal or state bankruptcy or similar law.

      

      C.  Notwithstanding
        the provisions of Section 11(A), in the event of a material breach of this
        Agreement by either party remaining uncured for more than thirty (30) days
        after
        receipt of written notification of such breach by the nonbreaching party,
        then
        the nonbreaching party may immediately terminate this Agreement at its sole
        option.

      

      D.  Notwithstanding
        the provisions of Section 11(A), in the event a “Force Majeure Event” (as
        defined in Article 19) substantially prevents one party’s performance of its
        obligations pursuant to this Agreement, for a period of ten (10) or more
        consecutive days, Delta may (i) temporarily suspend some or all of the Aircraft
        from the scope of this Agreement upon written notice to the Operator, or
        (ii)
        terminate this Agreement in its entirety upon thirty (30) days prior written
        notice to Operator.

      

      E.  Notwithstanding
        the provisions of Sections 11(A), (B), (C) and (D), Delta shall have the
        right
        to terminate this Agreement immediately and at its sole option upon the
        occurrence of one or more of the following:

      

      (i)  Operator
        or Parent agrees to merge into or with any entity, agrees to be acquired
        by any
        entity, agrees to sell substantially all of its assets or enters into a letter
        of intent, or similar document, to merge into or with any entity, to be acquired
        by any entity, or to sell substantially all of its assets (each such event,
        a
“Merger”);

      

      (ii)  The
        acquisition, after the Agreement Date, by any individual, entity or group
        (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
        Act of 1934 (as amended, the “Exchange Act”)) (a “Person”) of beneficial
        ownership (within the meaning of Rule 13d-3 promulgated under the Exchange
        Act)
        of more than forty-nine percent (49%) of either (a) the then outstanding
        shares
        of common stock of Operator or Parent, or (b) the combined voting power of
        the
        then outstanding voting securities of Operator or Parent entitled to vote
        generally in the election of such entity’s directors or managers, as applicable
        (each such event, a “Change of Control”);

      

      (iii)  Operator’s
        level of safety with respect to its operation of the Aircraft or the Delta
        Connection Flights is not reasonably satisfactory to Delta;

      

      (iv)  a
        breach by Operator of Section 17(G) hereof;

      

      (v)  Operator’s
        failure to pass, in Delta’s reasonable discretion, a safety and codeshare audit
        to be conducted by Delta, at its sole discretion, at any time during the
        Term of
        this Agreement;

      

      (vi)  Operator
        fails to achieve any of the Operational Performance Standards set forth on
        Schedule 10 with respect to the Delta Connection Flights during any (y)
        two (2) consecutive months or (z) three (3) months during any consecutive
        six
        (6) month period;

      

      (vii)  a
        material breach by Operator or Parent of any representation or warranty in
        Section 16(A)(5);

      

      (viii)  Operator’s
        failure to comply with the insurance provisions of Articles 13 and 14
        hereof;

      

      (ix)  Operator’s
        FAA or DOT Certification is for any reason suspended or revoked or otherwise
        not
        in full force and effect so as to permit Operator to operate the Delta
        Connection Flights required under this Agreement;

      

      (x)  Operator
        shall commence operating an aircraft type which causes Delta to be in violation
        of its collective bargaining agreement with its pilots, as may be amended
        from
        time to time; and

      

      (xi)    any
        breach by Operator or Parent of that certain Assignment and Assumption Agreement
        of even date herewith by and among Operator, Parent, Delta and Bombardier
        Inc.
        (the “Assignment and Assumption Agreement”) including without limitation any
        failure to make any PDP Payments (as defined therein) due under the Pinnacle
        Purchase Agreement (as defined therein) on a timely basis or any failure
        to
        accept delivery of any aircraft tendered for delivery under the Pinnacle
        Purchase Agreement in compliance with the terms thereof.

      

      F.  Termination
        of this Agreement for any reason shall not relieve either party of rights
        and
        obligations incurred prior to the effective date of termination.  A
        party’s right to terminate this Agreement shall be in addition to any other
        rights or remedies, in law or equity, available to such party.

      

      ARTICLE 12.  INDEPENDENT
        CONTRACTORS; LIABILITY PROVISIONS.

      

      A.  Operator
        shall act as an independent contractor.  The employees, agents and/or
        independent contractors of Operator engaged in performing any of the services
        Operator is obligated to perform pursuant to this Agreement shall be employees,
        agents and independent contractors of Operator for all purposes and under
        no
        circumstances shall employees, agents or independent contractors of Operator
        be
        deemed to be employees, agents or independent contractors of Delta.  In its
        performance of obligations under this Agreement, Operator shall act, for
        all
        purposes, as an independent contractor and not as an agent for Delta. 
Delta shall have no supervisory power or control over any employees, agents
        or
        independent contractors engaged by Operator in connection with Operator’s
        performance of its obligations hereunder, and all complaints or requested
        changes in procedure shall, in all events, be transmitted by Delta to a
        designated representative of Operator.  Nothing contained in this Agreement
        is intended to limit or condition Operator’s control over its operation or the
        conduct of its business as an air carrier, and Operator assumes all risks
        of
        financial losses which may result from the operation of the air services
        to be
        provided by Operator hereunder.

      

      B.  Delta
        shall act as an independent contractor. The employees, agents and/or independent
        contractors of Delta engaged in performing any of the services Delta is to
        perform pursuant to this Agreement shall be employees, agents and independent
        contractors of Delta for all purposes and under no circumstances shall
        employees, agents and independent contractors of Delta be deemed to be
        employees, agents or independent contractors of Operator.  In performing
        its obligations under this Agreement, Delta shall act, for all purposes,
        as an
        independent contractor and not as an agent for Operator.  Operator shall
        have no supervisory power or control over any employees, agents or independent
        contractors engaged by Delta in connection with the performance of its
        obligations hereunder, and all complaints or requested changes in procedure
        shall, in all events, be transmitted by Operator to a designated representative
        of Delta.  Nothing contained in this Agreement is intended to limit or
        condition Delta’s control over its operation or the conduct of its business as
        an air carrier.

      

      C.  Parent
        and Operator, jointly and severally, shall be liable for and hereby agrees
        fully
        to defend, release, discharge, indemnify, and hold harmless Delta and its
        affiliates, and each of their respective directors, officers, employees and
        agents (each, a “Delta Indemnitee”) from and against any and all claims,
        demands, damages, liabilities, suits, judgments, actions, causes of action,
        losses, costs and expenses of any kind, character or nature whatsoever (in
        each
        case whether groundless or otherwise), including reasonable attorneys' fees,
        costs and expenses in connection therewith and expenses of investigation
        and
        litigation thereof, which may be suffered by, accrued against, charged to,
        or
        recoverable from any Delta Indemnitee in any manner arising out of, connected
        with, or attributable to this Agreement, the performance, improper performance,
        or nonperformance of any and all obligations to be undertaken by Operator
        pursuant to this Agreement, or the operation, non-operation, or improper
        operation of Operator's aircraft, equipment or facilities at any location,
        excluding only claims, demands, damages, liabilities, suits, judgments, actions,
        causes of action, losses, costs and expenses resulting from the gross negligence
        or willful misconduct of any Delta Indemnitee.  Operator will do all
        things necessary to cause and assure, and will cause and assure, that Operator
        will at all times be and remain in custody and control of all aircraft,
        equipment, and facilities of Operator, and no Delta Indemnitee shall, for
        any
        reason, be deemed to be in custody or control, or a bailee, of Operator's
        aircraft, equipment or facilities.

      

      D.  Delta
        shall be liable for and hereby agrees fully to defend, release, discharge,
        indemnify, and hold harmless Operator, and each of its directors, officers,
        employees, and agents (each, an “Operator Indemnitee”) from and against any and
        all claims, demands, damages, liabilities, suits, judgments, actions, causes
        of
        action, losses, costs and expenses of any kind, character or nature whatsoever
        (in each case whether groundless or otherwise), including reasonable attorneys'
        fees, costs and expenses in connection therewith and expenses
        of  investigation and litigation thereof, which may be suffered by,
        accrued against, charged to, or recoverable from any Operator Indemnitee
        in any
        manner arising out of, connected with, or attributable to Delta’s performance,
        improper performance or nonperformance of any and all obligations to be
        undertaken by Delta pursuant to this Agreement,  or the operation,
        non-operation or improper operation of Delta's aircraft, equipment or facilities
        at any location, excluding only claims, demands, damages, liabilities, suits,
        judgments, actions, causes of action, losses, costs and expenses resulting
        from
        the gross negligence or willful misconduct of any Operator
        Indemnitee.   Delta will do all things necessary to cause and
        assure, and will cause and assure, that Delta will at all times be and remain
        in
        custody and control of any aircraft, equipment and facilities of Delta used
        in
        connection with performance of this Agreement, and no Operator Indemnitee
        shall,
        for any reason, be deemed to be in the custody or control, or a bailee, of
        such
        Delta aircraft, equipment or facilities.

      

      E.  Operator
        and Delta agree to comply with all lawful rules, regulations, directives
        and
        similar instructions of appropriate governmental, judicial and administrative
        entities including, but not limited to, airport authorities, the Federal
        Aviation Administration and the Department of Transportation (and any successor
        agencies) with respect to operations covered by this Agreement.

      

      F.  OTHER
        THAN ANY WARRANTIES SPECIFICALLY CONTAINED IN THIS AGREEMENT, EACH PARTY
        DISCLAIMS AND THE OTHER PARTY HEREBY WAIVES ANY WARRANTIES, EXPRESS OR IMPLIED,
        ORAL OR WRITTEN, WITH RESPECT TO THIS AGREEMENT OR ITS PERFORMANCE OF ITS
        OBLIGATIONS HEREUNDER INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF
        MERCHANTABILITY OR FITNESS FOR INTENDED USE RELATING TO ANY EQUIPMENT, DATA,
        INFORMATION OR SERVICES FURNISHED HEREUNDER.  EACH PARTY AGREES THAT
        THE OTHER PARTY IS NOT LIABLE TO IT OR ANY OTHER PERSONS FOR CONSEQUENTIAL
        OR
        PUNITIVE DAMAGES UNDER ANY CIRCUMSTANCES.

      

      G.  Indemnification
        Claims.  A party (the “Indemnified Party”) entitled to
        indemnification from the other party under the terms of this Agreement (the
        “Indemnifying Party”) shall provide the Indemnifying Party with prompt written
        notice (an “Indemnity Notice”) of any third party claim which the Indemnified
        Party believes gives rise to a claim for indemnity against the Indemnifying
        Party hereunder, and the Indemnifying Party shall be entitled, if it accepts
        financial responsibility for the third party claim, to control the defense
        of or
        to settle any such third party claim at its own expense and by its own counsel;
        provided that the Indemnified Party’s prior written consent (which may
        not be unreasonably withheld or delayed) must be obtained prior to settling
        any
        such third party claim.  If the Indemnifying Party does not accept
        financial responsibility for the third party claim or fails to defend against
        the third party claim that is the subject of an Indemnity Notice within thirty
        (30) days of receiving such notice (or sooner if the nature of the third
        party
        claim so requires), or otherwise contests its obligation to indemnify the
        Indemnified Party in connection therewith, the Indemnified Party may, upon
        providing written notice to the Indemnifying Party, pay, compromise or defend
        such third party claim.  The Indemnified Party shall provide the
        Indemnifying Party with such information as the Indemnifying Party shall
        reasonably request to defend any such third party claim and shall otherwise
        cooperate with the Indemnifying Party in the defense of any such third party
        claim.  Except as set forth above in this Section 12(G), the
        Indemnified Party shall not enter into any settlement or other compromise
        or
        consent to a judgment with respect to a third party claim as to which the
        Indemnifying Party has an indemnity obligation hereunder without the prior
        written consent of the Indemnifying Party (which may not be unreasonably
        withheld or delayed), and the entering into any settlement or compromise
        or the
        consent to any judgment in violation of the foregoing shall constitute a
        waiver
        by the Indemnified Party of its right to indemnity hereunder to the extent
        the
        Indemnifying Party was prejudiced thereby.  Any Indemnifying Party
        shall be subrogated to the rights of the Indemnified Party to the extent
        that
        the Indemnifying Party pays for any Loss suffered by the Indemnified Party
        hereunder.  Notwithstanding anything contained in this Section 12(G)
        to the contrary, Parent, Operator and Delta will cooperate in the defense
        of any
        claim imposed jointly against them or as the result of the conduct of the
        other.

      

      ARTICLE 13.  WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY

      INSURANCE PROVISIONS.

      

      A.  For
        purposes of workers’ compensation insurance, Delta's employees, agents and
        independent contractors under no circumstances shall be deemed to be, or
        shall
        be, employees, agents or independent contractors of Operator.

      

      B.  For
        purposes of workers’ compensation insurance, Operator's employees, agents and
        independent contractors under no circumstances shall be deemed to be, or
        shall
        be, the employees, agents or independent contractors of Delta.

      

      C.  Each
        party assumes full responsibility for, and liability to, its own employees
        on
        account of injury, or death resulting therefrom, sustained in the course
        of
        their employment.  Each party, with respect to its own employees,
        accepts full and exclusive liability for the payment of applicable workers'
        compensation and employers' liability insurance premiums with respect to
        such
        employees, and for the payment of all taxes, contributions or other payments
        for
        unemployment compensation and old age benefits, and other similar benefits
        now
        or hereafter imposed upon employers by any government or agency thereof having
        jurisdiction in respect of such employee.  Each party also agrees to
        make such payments and to make and file all reports and returns and to do
        all
        things necessary to comply with all applicable laws at any time imposing
        such
        taxes, contributions, or payments.

      

      D.  Each
        party will have their workers’ compensation insurance carrier endorse its policy
        to provide a waiver of subrogation against the other party.

      

      ARTICLE 14.  INSURANCE PROVISIONS.

      

      A.  Operator
        shall procure and maintain in full force and effect during the term of this
        Agreement policies of insurance of the types and in the minimum amounts set
        forth below, with such insurers and under such terms and conditions as are
        satisfactory to Delta (subject to Section 14(H) below):

      

      
        	
                 

              	
                1.

              	
                All
                  risk hull insurance and hull war risk insurance on an agreed value
                  basis,
                  not to exceed replacement value, except as required by financing
                  agreements.

              

      

      

      
        	
                 

              	
                2.

              	
                Comprehensive
                  aviation liability (including premises, products and completed
                  operations)
                  covering bodily injury, personal injury and property damage in
                  an amount
                  not less than [***] per occurrence; provided, however, that
                  non-passenger personal injury coverage may be limited to [***]
                  per
                  occurrence.

              

      

      

      
        	
                 

              	
                3.

              	
                Workers'
                  compensation for statutory limits.

              

      

      

      
        	
                 

              	
                4.

              	
                Employer's
                  liability in an amount not less than
                  [***].

              

      

      

      
        	
                 

              	
                5.

              	
                Baggage
                  liability.

              

      

      

      
        	
                 

              	
                6.

              	
                Cargo
                  liability in an amount not less than [***] per loss, casualty or
                  disaster.

              

      

      

      
        	
                 

              	
                7.

              	
                Automobile
                  liability in an amount not less than [***] combined single limit
                  per
                  occurrence.

              

      

      

      
        	
                 

              	
                8.

              	
                War,
                  Hijacking and Other Allied Perils insurance protecting against
                  the perils
                  in AVN52D, as amended from time to time, or its U.S. equivalent
                  in an
                  amount not less than [***] per occurrence.  Such insurance may
                  be maintained through a combination of primary and excess
                  layers.

              

      

      

      9.      Insurance
        required by any Facilities Lease.

      

      B.  Operator
        shall cause the policies of insurance described in Article 14(A) above to
        be
        duly and properly endorsed by Operator's insurance underwriters as
        follows:

      

      
        	
                 

              	
                1.

              	
                As
                  to the policies of insurance described in Articles 14(A)(1), (A)(2),
                  (A)(3), (A)(4), (A)(5), (A)(6), (A)(7) and (A)(8):  (a) to
                  provide that any waiver of rights of subrogation against other
                  parties by
                  Operator will not affect the policy requirements provided in Section
                  14(A)
                  above with respect to Delta, its affiliates, and their directors,
                  officers, employees and agents; and (b) to provide that Operator's
                  underwriters shall waive all subrogation rights arising out of
                  this
                  Agreement against Delta, its affiliates, and their directors, officers,
                  employees and agents without regard to any breach of warranty on
                  the part
                  of Operator.

              

      

      

      
        	
                 

              	
                2.

              	
                As
                  to the policies of insurance described in Articles 14(A)(2), (A)(5),
                  (A)(6), (A)(7) and (A)(8):  (a) to provide that Delta, its
                  affiliates, and their directors, officers, employees and agents
                  shall be
                  named as additional insured parties thereunder; and (b) to provide
                  that
                  such insurance shall be primary insurance as respects any insurance
                  carried by Delta.

              

      

      

      
        	
                 

              	
                3.

              	
                As
                  to the policies of insurance described in Articles 14(A)(2), (A)(7)
                  and
                  (A)8):  (a) to provide a cross-liability clause for Delta and
                  Operator and their respective affiliates, and their directors,
                  officers,
                  employees and agents; and (b) to provide contractual liability
                  insurance
                  coverage for liability assumed by Operator under this
                  Agreement.

              

      

      

      
        	
                 

              	
                4.

              	
                As
                  to any insurance obtained from foreign underwriters, to provide
                  that Delta
                  may maintain against such underwriters a direct action in the United
                  States upon such insurance policies and, to this end, to include
                  a
                  standard service of process clause designating a United States
                  attorney in
                  Washington, D.C. or New York, New
                  York.

              

      

      

      C.  Operator
        shall cause each of the insurance policies to be duly and properly endorsed
        to
        provide that such policy or policies or any part or parts thereof shall not
        be
        canceled, terminated or materially altered, changed or amended by Operator's
        insurance underwriters until after thirty (30) days' written notice to Delta,
        which thirty (30) days' notice shall commence to run from the date such notice
        is actually received by Delta.

      

      D.  Not
        later than the Effective Date, and upon renewal thereafter or upon request
        by
        Delta, Operator shall furnish Delta evidence satisfactory to Delta of the
        aforesaid insurance coverages and endorsements, including certificates
        certifying that the aforesaid insurance policy or policies with the aforesaid
        limits are duly and properly endorsed as aforesaid and are in full force
        and
        effect.

      

      E.  Operator
        shall not take any action, or fail to take any action, that will cause the
        insurance and endorsements required to be maintained by Operator pursuant
        to
        this Agreement to be invalidated.  In the event Operator fails to
        maintain in full force and effect any of the insurance and endorsements required
        to be maintained by Operator pursuant to Article 14(A), Delta shall have
        the
        right (but not the obligation) to procure and maintain such insurance or
        any
        part thereof on behalf of Operator.  The cost of such insurance shall
        be payable by Operator to Delta upon demand by Delta.  The procurement
        of such insurance or any part thereof by Delta does not discharge or excuse
        Operator's obligation to comply with the provisions set out
        herein.  Operator agrees not to cancel, terminate or materially alter,
        change or amend any of the policies until after providing thirty (30) days'
        advance written notice to Delta of Operator's intent to so cancel, terminate
        or
        materially alter, change or amend such policies of insurance, which thirty
        (30)
        day notice period shall commence to run from the date notice is actually
        received by Delta.

      

      F.  With
        respect to all claims against Operator (but not against Delta) with respect
        to
        which Operator is not entitled to be indemnified by Delta pursuant to Article
        12(B), whether or not covered by the insurance policies set forth in this
        Article 14 or otherwise, Delta is responsible only for filing an initial
        report
        and has no other obligations with respect to such claims, and Operator is
        fully
        responsible for handling all adjustments, settlements, negotiations, litigation
        and similar activities in any way related to or connected with such
        claims.

      

      G.  Subject
        to Section 14(H) below, the parties hereby agree that from time to time during
        the term of this Agreement Delta may require Operator to procure and maintain
        insurance coverages in amounts in excess of the minimum amounts set forth
        in
        Article 14(A) should the circumstances and conditions of Operator's operations
        under this Agreement be deemed, in Delta's sole discretion, to require
        reasonable increases in any or all of the foregoing minimum insurance coverages;
        provided that such insurance coverages are reasonably obtainable in the
        insurance market and that the costs thereof are all Pass Through
        Costs.

      

      H.  Notwithstanding
        anything to the contrary contained in this Article 14, Delta acknowledges
        that:

      

      
        	
                 

              	
                1.

              	
                without
                  waiving any rights it may have in the future if such policies change,
                  Delta has reviewed the policies of insurance currently maintained
                  by
                  Operator and determined that the insurers providing such policies
                  and the
                  terms and conditions of such policies are satisfactory to Delta
                  for
                  purposes of Section 14(A) above;
                  and

              

      

      

      
        	
                 

              	
                2.

              	
                Delta’s
                  rights to approve the insurers providing such policies and the
                  other terms
                  and conditions of such policies for purposes of Section 14(A) above,
                  and
                  Delta’s rights to require additional insurance coverages pursuant to
                  Section 14(G) above, shall be waived for so long as Operator participates
                  in a joint insurance program administered by Northwest Airlines,
                  Continental Airlines or any other legacy carrier; provided that the
                  foregoing waiver shall not constitute a waiver or otherwise reduce
                  or
                  excuse Operator’s obligation to provide the insurance specified in clauses
                  1 through 9 of Section 14(A).

              

      

      

      ARTICLE 15.  OPERATIONS OF OPERATOR AS A DELTA CONNECTION
        CARRIER.

      

      A.  Delta
        and Operator agree that, subject to the provisions of this Agreement, Operator
        will operate the Delta Connection Flights exclusively as a Delta Connection
        carrier.  Unless otherwise agreed by Delta, Operator will operate all
        Delta Connection Flights and the Aircraft with the passenger seat capacity
        permitted by law or regulation and otherwise as determined by Delta from
        time to
        time.  Operator shall not change any of the Aircraft specifications
        without the prior consent of Delta.

      

      B.  Operator
        acknowledges and agrees that participation in the Delta Connection program
        obligates Operator to offer and maintain a professional, high quality level
        of
        service in terms of schedules, customer service and the
        like.  Accordingly, at the request of Delta, the parties
        will:  (a) meet to mutually review and discuss the services,
        operations and plans of Operator and Delta for the Delta Connection program;
        and
        (b) jointly develop a written business plan for the Delta Connection operations
        and services of Operator.  Operator will comply with the business
        plans so developed.

      

      C.  Delta
        shall have the right, from time to time, to inspect Operator’s Delta Connection
        Service, including without limitation Operator’s in-flight service, flight,
        maintenance, technical operations, gate-check in service, ground operations,
        Aircraft cleaning and any and all other services and operations performed
        by
        Operator in connection with the Delta Connection Flights.  Such
        inspections may be announced or unannounced, but under no circumstances shall
        they interfere with the operation of Operator’s business. Failure on the
        part of Delta to conduct such inspections shall not relieve Operator of its
        obligations to conform with the service and performance standards set forth
        in
        this Agreement.

      

      ARTICLE
        16.  REPRESENTATIONS AND WARRANTIES.

      

      A.  Representations;
        Warranties and Covenants of Parent and Operator.  Each of Parent
        and Operator represents and warrants to Delta as of the date hereof as
        follows:

      

      (1)  Organization
        and
        Qualification.  Each of Parent and Operator is a duly organized
        and validly existing corporation in good standing under the laws of its state
        of
        incorporation and has the corporate power and authority to own, operate and
        use
        its assets and operate the Delta Connection Flights.

      

      (2)         Authority
        Relative to this Agreement.  Each of Parent and Operator has the
        corporate power and authority to execute and deliver this Agreement and to
        consummate the transactions contemplated hereby in accordance with the terms
        hereof.  The execution and delivery of this Agreement and the
        consummation of the transactions contemplated hereby have been duly authorized
        by all necessary corporate action on the part of each of Parent and
        Operator.  This Agreement has been duly and validly executed and
        delivered by each of Parent and Operator and is, assuming due execution and
        delivery thereof by Delta and that Delta has full legal power and right to
        enter
        into this Agreement, a valid and binding obligation of each of Parent and
        Operator, enforceable against each of them in accordance with its
        terms.

      

      (3)  Conflicts;
        Defaults.  Neither the execution or delivery of this Agreement nor
        the performance by Parent and Operator of the transactions contemplated hereby
        will (i) violate, conflict with, or constitute a default under any of the
        terms
        of such entity’s articles of incorporation, by-laws, or any provision of, or
        result in the acceleration of any obligation under, any contract, sales
        commitment, license, purchase order, security agreement, mortgage, note,
        deed,
        lien, lease, agreement or instrument, including without  limitation,
        any order, judgment or decree relating to the Delta Connection Flights, (ii)
        result in the creation or imposition of liens in favor of any third person
        or
        entity, (iii) violate any law, statute, judgment, decree, order, rule or
        regulation of any governmental authority, or (iv) constitute any event which,
        after notice or lapse of time or both, would result in such violation, conflict,
        default, acceleration or creation or imposition of liens.

      

      (4)  Broker.  Neither
        Parent nor Operator has retained or agreed to pay any broker or finder with
        respect to this Agreement and the transactions contemplated hereby.

      

      (5)  Compliance.  All
        air transportation services performed pursuant to this Agreement or otherwise
        by
        Operator shall be conducted in full compliance with all applicable statutes,
        orders, rules, regulations and notifications, whether now in effect or hereafter
        promulgated, of all governmental agencies having jurisdiction over its
        operations, including, but not limited to, the FAA, DOD, and DOT. Operator’s
        compliance with such governmental statutes, orders, rules, regulations and
        notifications will be the sole and exclusive obligation of Operator, and
        Delta
        will have no obligation, responsibility, or liability, whether direct or
        indirect, with respect to such matters.

      

      B.  Representations
        and Warranties of Delta.  Delta represents to each of Parent and
        Operator as of the date hereof as follows:

      

      (1)  Organization
        and
        Qualification.  Delta is a duly incorporated and validly existing
        corporation in good standing under the laws of the State of Delaware and
        has the
        corporate power and authority to own, operate and use its assets and to operate
        the Delta Connection program.

      

      (2)  Authority
        Relative to
        this Agreement.  Delta has the corporate power and authority to
        execute and deliver this Agreement and to consummate the transactions
        contemplated hereby in accordance with the terms hereof.  The
        execution and delivery of this Agreement and the consummation of the
        transactions contemplated hereby have been duly authorized by all necessary
        corporate action on the part of Delta.  This Agreement has been duly
        and validly executed and delivered by Delta and is, assuming due execution
        and
        delivery thereof by Parent and Operator and that each of Parent and Operator
        has
        full legal power and right to enter into this Agreement, a valid and binding
        obligation of Delta, enforceable against Delta in accordance with its
        terms.

      

      (3)         Conflicts;
        Defaults.  Neither the execution or delivery of this Agreement nor
        the performance by Delta of the transactions contemplated hereby will (i)
        violate, conflict with, or constitute a default under any of the terms of
        Delta’s articles of incorporation, by-laws, or any provision of, or result in
        the acceleration of any obligation under, any contract, sales commitment,
        license, purchase order, security agreement, mortgage, note, deed, lien,
        lease,
        agreement or instrument, including without limitation, any order, judgment
        or
        decree relating to the Delta Connection Flights, (ii) result in the creation
        or
        imposition of any liens in favor of any third person or entity, (iii) violate
        any law, statute, judgment, decree, order, rule or regulation of any
        governmental authority, or (iv) constitute any event which, after notice
        or
        lapse of time or both, would result in such violation, conflict, default,
        acceleration or creation or imposition of liens.

       

                    
        (4)  Broker.  Delta has not retained or agreed to pay
        any broker or finder with respect to this Agreement and the transactions
        contemplated hereby.

       

                                    
        (5)  Compliance.  All air transportation-related
        actions performed pursuant to this Agreement or otherwise by Delta shall
        be
        conducted in full compliance with all applicable statutes, orders, rules,
        regulations and notifications, whether now in effect or hereafter promulgated,
        of all governmental agencies having jurisdiction over its operations, including,
        but not limited to, the FAA, DOD, and DOT. Delta’s compliance with such
        governmental statutes, orders, rules, regulations and notifications will
        be the
        sole and exclusive obligation of Delta, and neither Parent nor Operator will
        have any obligation, responsibility, or liability, whether direct or indirect,
        with respect to such matters.

      

      ARTICLE
        17.  COVENANTS OF OPERATOR.  Operator hereby covenants
        and agrees that:

      

      A.  If
        requested by Delta at any time during the Term of this Agreement, Operator
        shall
        place its flight designator code on certain flights operated by Delta or
        an
        affiliate of Delta.

      

      B.  During
        the Term of this Agreement, Operator shall not, on the same operating
        certificate as the Aircraft, own, lease or operate for any purpose any aircraft,
        whether for itself, Delta or another carrier, that will cause Delta to be
        in
        violation of its collective bargaining agreement with its pilots, or, with
        respect to Operator’s commencing the ownership, lease or operation of a new type
        or size aircraft in the future, as such agreement may have been amended at
        such
        time.  In furtherance of the above, as of the Agreement Date, Operator
        shall not, on the same operating certificate as the Aircraft, own, lease
        or
        operate any turbo-prop aircraft that is configured with more than seventy-two
        (72) seats.  With respect to regional jet aircraft, as of the
        Agreement Date, Operator may operate, on the same operating certificate as
        the
        Aircraft, for itself or a carrier other than Delta, any number of regional
        jet
        aircraft that is certificated for up to 106 seats, but configured with no
        more
        than ninety-seven (97) seats, provided such aircraft is not operated on
        any city pair that is served by Delta or an affiliate of Delta.

      

      C.  Operator
        shall not enter into any binding agreement or arrangement (or series of
        agreements or arrangements) with any third party (excluding any employee
        collective bargaining units) for the procurement of any goods or services
        relating to Operator, the Aircraft or operation of any of the Delta Connection
        Flights that will result in a material increase in Operator’s Pass Through Costs
        to perform its services hereunder without the prior written consent of Delta,
        which consent shall not be unreasonably withheld (it being understood that
        Delta’s consent shall not be required if Operator does not pass any such
        increased costs to Delta as Pass Through Costs).

      

      D.  At
        the request of Delta, Operator agrees to enter into such agreement(s) with
        another air carrier as may be necessary to implement share code-sharing on
        the
        Delta Connection Flights with such other air carrier.

      

      E.  Operator
        agrees that any pilot furloughed by Delta will be given preferential new
        hire
        opportunities at Operator if such pilot completes all new hire paper work,
        meets
        all new hire airman and medical qualifications, satisfies background checks
        and
        successfully completes an interview and employment process, subject to any
        other
        preferences arising from existing contractual arrangements to which Parent
        or
        Operator is currently a party as of the Agreement Date.  Operator and
        Delta shall determine and implement mutually acceptable procedures and processes
        to effectuate the new hire opportunity commitment set forth
        above.  Delta agrees to offer preferential interviews for employment
        to airmen employed by Operator, subject to Delta's objectives for diversity
        and
        experience among newly hired pilots.

      

      F.  Operator
        shall file all reports and plans relating to its operations with the DOD,
        DOT, FAA, NTSB or any state or airport authority, and Operator shall promptly
        furnish Delta with copies of all such reports and such other available traffic
        and operating reports as Delta may request from time to
        time.  Additionally, Operator will promptly furnish Delta with a copy
        of every report and plan that Operator prepares, whether or not such report
        is
        filed with the FAA, NTSB or any other governmental agency, relating to any
        accident or incident involving an Aircraft when such accident or incident
        is
        claimed to have resulted in the death or injury to any person or the loss
        of,
        damage to or destruction of any property.

      

      G.  All
        flight operations, dispatch operations and flights and all other operations
        undertaken by Operator pursuant to this Agreement shall be conducted and
        operated by Operator in strict compliance with all Governmental Regulations,
        including, without limitation, those relating to airport security, the use
        and
        transportation of hazardous materials, flight crew and mechanic qualifications
        and licensing requirements, crew training and hours.  All Aircraft shall be
        operated and maintained by Operator in strict compliance with all Minimum
        Maintenance Standards, all Governmental Regulations, Operator’s own operations
        manuals and maintenance manuals and procedures, and all applicable equipment
        manufacturer’s instructions.  No later than one (1) year after the
        Effective Date, Operator shall apply and close out its inspection to establish
        its registration as an IOSA Operator and maintain such registration at all
        times
        thereafter during the Term.  At all times, Operator shall operate with
        the highest standards of care.

      

      H.  In
        the event Parent is no longer a public reporting company, Operator shall
        furnish
        to Delta (1) within 45 days after the end of each of the three interim calendar
        quarters, unaudited financial statements including Operator's then current
        corporate balance sheet and profit and loss statement and  (2) within
        91 days after the end of Operator's fiscal year, Operator's then current,
        audited financial statements including, either separately or on a consolidated
        basis, the balance sheet and the profit and loss statement, together with
        associated footnotes, and a copy of the independent auditor's
        report.  Notwithstanding the reporting status of Parent, Operator
        shall furnish to Delta within 91 days after the end of Operator's fiscal
        year, a
        profit and loss statement with respect to Operator’s Delta Connection operations
        prepared by SEC line-item and certified by Operator’s chief financial
        officer.

      

      ARTICLE 18.  CONTRACT INTERPRETATION.

      

      A.  This
        Agreement is subject to, and will be governed by and interpreted in accordance
        with, the laws of the State of New York, excluding conflicts of laws principles,
        and of the United States of America.  Any action or proceeding seeking
        to enforce any provision of, or based on any right arising out of, this
        Agreement may only be brought in the courts of the State of New York in New
        York
        County, or, if it has or can acquire jurisdiction, in the United States District
        Court for the Southern District of New York, and each of the parties hereto
        irrevocably consents to the exclusive jurisdiction of such courts (and of
        the
        appropriate appellate courts) in any such action or proceeding and waives,
        to
        the fullest extent permitted by law, any objection to venue laid
        therein.  Process in any action or proceeding referred to in the
        proceeding sentence may be served on any party anywhere in the
        world.  Each party further agrees to waive any right to a trial by
        jury.

      

      B.  The
        descriptive headings of the several articles and sections of this Agreement
        are
        inserted for convenience only, confer no rights or obligations on either
        party,
        and do not constitute a part of this Agreement.

      

      C.  Time
        is of the essence in interpreting and performing this Agreement.

      

      D.  This
        Agreement (including the Exhibits and Schedules hereto) constitutes the entire
        understanding between the parties with respect to the subject matter hereof,
        and
        any other prior or contemporaneous agreements, whether written or oral, are
        expressly superseded hereby.

      

      E.  If
        any part of any provision of this Agreement shall be invalid or unenforceable
        under applicable law, such part shall be ineffective to the extent of such
        invalidity or unenforceability only, without in any way affecting the remaining
        parts of such provision or the remaining provisions.

      

      F.  This
        Agreement may be executed in any number of counterparts, including via
        facsimile, each of which shall be deemed to be an original and all of which,
        taken together, shall constitute one and the same instrument.

      

      G.  Because
        a breach of the provisions of this Agreement could not adequately be compensated
        by money damages, any party shall be entitled to an injunction restraining
        such
        breach or threatened breach and to specific performance of any provision
        of this
        Agreement and, in either case, no bond or other security shall be required
        in
        connection therewith, and the parties hereby consent to the issuance of such
        injunction and to the ordering of specific performance. 

      

      H.  NO
        PARTY SHALL BE LIABLE FOR ANY INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES,
        INCLUDING LOST REVENUES, LOST PROFITS, OR LOST PROSPECTIVE ECONOMIC ADVANTAGE,
        ARISING FROM THIS AGREEMENT OR ANY BREACH HEREOF.

      

      ARTICLE 19.  CIRCUMSTANCES BEYOND THE PARTIES' CONTROL.

      

      With
        the
        exception of outstanding rights and obligations, and subject to Section 3(H)
        hereof, each party will be relieved of its obligations under this Agreement
        in
        the event, to the extent and for the period of time that performance is delayed
        or prevented caused by any acts of God, acts of terrorism or hostilities,
        war,
        strike, labor disputes, work stoppage, fire, act of government, court order,
        or
        any other act reasonably beyond the control of that party, including but
        not
        limited to, non-delivery or delay in delivery of the Aircraft or delay in
        the
        completion of required training of the Operator’s employees by the Aircraft
        manufacturer (each, a “Force Majeure Event”).

      

      ARTICLE 20.  NO LICENSE GRANTED.

      

      A.  This
        Agreement is not, and shall not be construed to be, a license for either
        party
        to use the trade names, trademarks, service marks, or logos of the other
        party,
        or its affiliates, without such party's prior written consent.

      

      B.  Operator
        will conduct all operations described herein under the service mark “Delta
        Connection.”  Delta hereby grants to Operator a nonexclusive,
        nontransferable, non-sublicensable license to use certain trademarks, service
        marks, logos and trade names that Delta owns or has the right to use, including,
        “Delta,” “Delta Connection,” “SkyMiles,” and the Delta widget design
        (collectively, the “Delta Marks”) in connection with the services to be rendered
        by Operator pursuant to this Agreement; provided, however, that at any
        time during the Term of this Agreement, Delta may alter, amend or revoke
        the
        license hereby granted and require Operator’s use of a new or different Delta
        Mark in connection with the services provided hereunder as Delta may determine
        in its sole discretion.

      

      C.  Operator
        hereby acknowledges Delta’s right to use the Delta Marks, further acknowledges
        the validity of the Delta Marks, and agrees that it will not do anything
        in any
        way to infringe or abridge Delta’s, or any of its affiliates’, rights in the
        Delta Marks or directly or indirectly to challenge the validity of the Delta
        Marks.

      

      D.  Except
        as set forth in Section 20(B) above, Operator shall not use any of the Delta
        Marks without Delta’s prior written consent.

      

      E.  Nothing
        in this Agreement shall be construed to give Operator the exclusive right
        to use
        any of the Delta Marks, or to abridge Delta’s right to use or license any of its
        trademarks, service marks, trade names or logos(collectively, “Identification”)
        and to license such other uses of such Identification as Delta or its affiliates
        may desire.

      

      F.  Should
        this Agreement be canceled or otherwise terminated for any reason as set
        forth
        in Article 11 hereof, all right to use the Delta Marks shall revert to Delta
        and
        shall not thereafter be used by Operator in any form or fashion.

      

      G.  Branding.

      

      1.  Livery.  Each
        of the Aircraft shall be in the color scheme, including exterior paint and
        interior upholstery and appointments (“Livery”) of the Delta Connection Livery,
        as provided by Delta to Operator from time to time.  Any changes to
        the initial Livery of any of the Aircraft shall be done on a schedule as
        mutually agreed by the parties, and at Delta’s cost.

      

      2.  On
        Board
        Branding.  Delta shall control all on board branding and in-flight
        materials including, without limitation, in-flight publications, food and
        beverage products, paper goods and service ware.  In the event of any
        change to the on-board branding or in-flight materials, Delta shall be
        responsible for reimbursing Operator for any reasonable costs and expenses
        incurred by Operator in connection therewith.  Operator shall be
        solely responsible for maintaining all licenses necessary for the serving
        of
        in-flight food and beverages on the Delta Connection Flights.

      

      ARTICLE 21.  MODIFICATION AND WAIVER.

      

      No
        amendment, modification, supplement, termination or waiver of any provision
        of
        this Agreement, and no consent to any departure by either party therefrom,
        shall
        in any event be effective unless in writing signed by authorized representatives
        of both parties, and then only in the specific instance and for the specific
        purpose given.

      

      ARTICLE 22.  NOTICES.

      

      Unless
        otherwise provided herein, all
        notices, requests and other communications required or provided for hereunder
        shall be in writing (including telecopy or similar teletransmission or writing)
        and shall be given at the following addresses:

      

      (1)  If
        to
        Delta:

      

      Delta
        Air Lines, Inc.

      1030
        Delta Blvd.

      Atlanta,
        GA  30354

      Dept.
        915

      Attn:
        Vice President- Delta
        Connection

      Telecopy:  [***]

      

      with
        copies to:

      

      Delta
        Air Lines, Inc.

      1030
        Delta Boulevard

      Atlanta,
        GA  30354

      Dept.
        981

      Attn:
        Executive V.P. and General
        Counsel

      Telecopy:  [***]

      (2)  If
        to Parent or
        Operator:

      

      Pinnacle
        Airlines Corp.

      1689
        Nonconnah Boulevard

      Suite
        111

      Memphis,
        Tennessee 38132

      Attention:  Chief
        Financial
        Officer

      Telecopy:  [***]

      

      with
        copies to:

      

      Kevin
        P. Lewis

      Vinson
&
Elkins
        LLP

      1001
        Fannin Street

      2500
        First City Tower

      Houston,
        Texas 77002

      Telecopy:
        [***]

      

      Any
        such
        notice, request or other communication shall be effective (i) if given by
        mail,
        upon the earlier of receipt or the third business day after such communication
        is deposited in the United States mails, registered or certified, with first
        class postage prepaid, addressed as aforesaid or (ii) if given by any other
        means including, without limitation, by air courier, when delivered at the
        address specified herein.  Delta or Operator may change its address
        for notice purposes by notice to the other party in the manner provided
        herein.

      

      ARTICLE 23.  ASSIGNMENT.

      

      This
        Agreement shall bind and inure to the benefit of Delta, Parent and, subject
        to
        Section 27 below, Operator, and their respective successors and assigns;
        provided, however, neither party may assign or transfer this Agreement or
        any portion hereof to any person or entity except as provided in Article
        27 or
        otherwise without the express written consent of the other party.  Any
        assignment or transfer, by operation of law or otherwise, without such consent
        shall be null and void and of no force or effect.

      

      ARTICLE 24.  GOOD FAITH.

      

      Each
        party shall exercise good faith in its dealings with the other party hereto
        and
        in performance of its obligations under this Agreement.

      

      ARTICLE
        25.  CONFIDENTIALITY.

      

      A.  Except
        as otherwise provided below, each party shall, and shall ensure that its
        directors, officers, employees, affiliates and professional advisors
        (collectively, the “Representatives”), at all times, maintain strict confidence
        and secrecy in respect of all Confidential Information (as defined below)
        of the
        other party (including its affiliates) received directly or indirectly as
        a
        result of this Agreement.  If a party (the “Disclosing Party”) in good
        faith determines that it is required to disclose any Confidential Information
        of
        other party (the “Affected Party”) in order to comply with any applicable law or
        government regulation, or under the terms of a subpoena or order issued by
        a
        court or governmental body, it shall (a) notify the Affected Party immediately
        of the existence, terms and circumstances surrounding such request, (b) consult
        with the Affected Party on the advisability of taking legally available steps
        to
        resist or narrow such request and (c) if any disclosure of Confidential
        Information is required to prevent the Disclosing Party from being held in
        contempt or subject to other legal penalty, furnish only such portion of
        the
        Confidential Information as it is legally compelled to disclose and use
        commercially reasonable efforts (at the cost of the party whose Confidential
        Information is being protected) to obtain an order or other reliable assurance
        that confidential treatment shall be accorded to the disclosed Confidential
        Information.  Each party agrees to transmit Confidential Information
        only to such of its Representatives as required for the purpose of implementing
        and administering this Agreement, and shall inform such Representatives of
        the
        confidential nature of the Confidential Information and instruct such
        Representatives to treat such Confidential Information in a manner consistent
        with this Article 25.

      

      For
        purposes of this Agreement,
“Confidential Information” shall mean (a) all confidential or proprietary
        information of a party, including, without limitation, trade secrets,
        information concerning past, present and future research, development, business
        activities and affairs, finances, properties, methods of operation, processes
        and systems, customer lists, customer information (such as passenger name
        record
        or “PNR” data) and computer procedures and access codes; and (b) the terms and
        conditions of this Agreement and any reports, invoices or other communications
        between the parties given in connection with the negotiation or performance
        of
        this Agreement; and (c) excludes (i) information already in a party’s possession
        prior to its disclosure by other party; (ii) information obtained from a
        third
        person or entity that is not prohibited from transmitting such information
        to
        the receiving party as a result of a contractual, legal or fiduciary obligation
        to the party whose information is being disclosed; (iii) information that
        is or
        becomes generally available to the public, other than as a result of disclosure
        by a party in violation of this Agreement; or (iv) information that has been
        or
        is independently acquired or developed by a party, or its affiliate, without
        violating any of its obligations under this Agreement.

      

      Notwithstanding
        the provisions of
        this Section 25(A) to the contrary, the parties acknowledge that this Agreement
        may constitute a material contract for purposes of Parent’s disclosure
        obligations arising under the Securities Act of 1933, as amended, and/or
        the
        Securities Exchange Act of 1934, as amended, and that Parent may make any
        such
        required disclosure, subject to the prior review by, and meaningful consultation
        with, Delta.

      

      B.  Each
        party acknowledges and agrees that in the event of any breach of this Article
        25, the Affected Party shall be irreparably and immediately harmed and could
        not
        be made whole by monetary damages.  Accordingly, it is agreed that, in
        addition to any other remedy at law or in equity, the Affected Party shall
        be
        entitled to an injunction or injunctions (without the posting of any bond
        and
        without proof of actual damages) to prevent breaches or threatened breaches
        of
        this Article 25 and/or to compel specific performance of this Article
        25.

      

      C.  The
        confidential obligations of the parties under this Article 25 shall survive
        the
        termination or expiration of this Agreement.

      

      ARTICLE
        26.  ADDITIONAL DOCUMENTS.

      

      The
        parties hereby covenant and agree, contemporaneously with the execution of
        this
        Agreement, to execute and deliver the following additional documents in
        connection with this Agreement:

      

      A.  A
        ground handling agreement, providing for ground handling by Delta (or Delta’s
        designee) at certain stations operated by Operator;

      

      B.  An
        Employee Free and Reduced Rate Interline Travel Agreement (the “Interline
        Agreement”).  The additional terms and conditions set forth on
Schedule 26 attached hereto and incorporated herein shall apply with
        respect to employee non-revenue passenger travel; and

      

      C.
        The Assignment and Assumption
        Agreement.

      

      In
        addition, the parties covenant and agree, prior to the operation of the initial
        Delta Connection Flight, to execute and deliver an agreement for the provision
        of emergency response services to be provided by Delta and Operator with
        respect
        to Delta Connection Flights, in form and substance reasonably satisfactory
        to
        each of Delta and Operator.

      

      ARTICLE
        27.  PARENT GUARANTEE AND CHANGE OF OPERATOR.

      

      A.  Parent
        hereby unconditionally and irrevocably guarantees to Delta the due and punctual
        performance by Operator of each of Operator’s obligations, agreements and
        covenants arising under this Agreement and under each term and condition
        hereof
        (collectively, the “Obligations”).  If Operator shall fail or be
        unable to perform any such Obligation as and when the same shall be required
        to
        be performed, then Parent, at its sole cost and expense, shall be obligated
        to
        promptly perform or cause to be promptly performed each such Obligation in
        accordance with the terms hereof and thereof.  This guaranty is a
        guaranty of payment, performance and compliance and not of collectibility
        and is
        in no way conditioned or contingent upon any attempt to collect from or enforce
        performance or compliance by Operator or upon any other event or condition
        whatsoever.  If for any reason any payment Obligation amount shall not
        be paid by Operator when due, Parent shall immediately pay such amount to
        the
        person entitled thereto pursuant to this Agreement, as if such amount
        constituted the direct and primary obligation of Parent and regardless of
        whether any person has taken any steps to enforce any rights against Operator
        to
        collect such amount.

      

      B.         To
        the fullest extent permitted under applicable law, the obligations of Parent
        hereunder shall be absolute and unconditional, shall be continuing and remain
        in
        full force and effect until final and irrevocable payment or performance,
        and
        shall not be released, discharged, affected or impaired in any respect
        by:  (a) any amendment, modification, or cancellation of, or addition
        or supplement to this Agreement; (b) any exercise, acceleration, extension,
        compromise, settlement, non-exercise, waiver, release, or cancellation by
        Delta
        of any right, remedy, power or privilege under or related to this Agreement
        or
        any other guaranty of any obligations of Operator; (c) the invalidity or
        unenforceability, in whole or in part, of this Agreement; (d) any change
        in the
        corporate existence, structure or ownership of Operator or Parent or any
        insolvency, bankruptcy, reorganization or other similar proceeding affecting
        either of them or their assets; or (e) any other occurrence, circumstance,
        happening or event whatsoever, whether similar or dissimilar to the foregoing,
        whether foreseen or unforeseen, and any other circumstance which might otherwise
        constitute a legal or equitable defense, release or discharge of the liabilities
        of a guarantor or surety, or which might otherwise limit recourse against
        Parent.  If acceleration of the time for the performance or payment of
        any Obligation is stayed upon the insolvency, bankruptcy or reorganization
        of
        Operator, all Obligations that are subject to acceleration under the terms
        of
        this Agreement shall nonetheless be performed or payable hereunder by
        Parent.

      

      C.         Parent
        hereby specifically agrees that it shall not be necessary or required as
        a
        condition to enforcement of the obligations hereunder against it, that there
        be
        (and Parent, to the fullest extent permitted by applicable law, specifically
        waives) diligence, presentment, or protest of any kind whatsoever with respect
        to this guaranty by Parent or the Obligations; such waiver includes, without
        limitation: (i) presentment for payment upon Operator or Parent or the making
        of
        any protest; (ii) any requirement to exhaust any remedies exercisable upon
        a
        default under this Agreement or to give any notice of non-performance or
        non-payment; (iii) any other circumstance whatsoever that might otherwise
        constitute a legal or equitable discharge, release or defense of a guarantor
        or
        surety; or (iv) so long as any Obligation remains outstanding, any right
        of
        subrogation by virtue of any performance or payment made
        hereunder.  Parent agrees that any payment or performance of the
        Obligations guaranteed hereunder or other act that tolls any statute of
        limitations applicable to enforcement of the Obligations shall similarly
        operate
        to toll any statute of limitations applicable to any liability of Parent
        pursuant to this Article 27.  In addition, to the fullest extent
        permitted by applicable law, Parent waives the benefit and advantage of any
        and
        all valuation, stay, appraisement, extension or redemption laws which, but
        for
        this provision, agreement and waiver, might be applicable to any sale made
        under
        any judgment, order or decree of any court or otherwise based on the guaranty
        of
        Parent pursuant to this Article 27.  All waivers made by Parent in
        this Section 27(C) and elsewhere throughout this Article 27 are intentional
        and
        made by Parent after due consideration of all the consequences
        thereof.

      

      D.         All
        of the terms and conditions of this Article 27 shall be binding upon and
        shall
        inure to the benefit of the respective successors and assigns of the parties;
        provided that Parent may not assign, delegate or otherwise transfer any
        of its rights or obligations hereunder without the consent of
        Delta.

      

      E.         Notwithstanding
        the provisions of Article 23 or any other provision of this Agreement, subject
        to the commercially reasonable consent of Delta, at anytime prior to the
        initial
        in-service date of the first Aircraft placed into Delta Connection service,
        Operator may assign all of its rights and obligations hereunder to another
        wholly-owned subsidiary of Parent, provided that such assignee and Parent
        shall
        execute an assignment agreement in form and substance reasonably satisfactory
        to
        Delta and whereby such assignee agrees to undertake all of Operator’s past,
        present and future obligations and liabilities hereunder and succeeds to
        its
        rights and privileges hereunder, and Parent acknowledges the continuing effect
        of Sections 27(A), (B) and (C) above.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      IN
        WITNESS WHEREOF, the parties have
        executed this Agreement by their undersigned duly authorized
        representatives:

      

      

      

      Pinnacle
        Airlines,
        Inc.                                                Pinnacle
        Airlines
        Corp.                                              Delta
        Air Lines, Inc.

      

      

      

      By:
        /s/ Philip H.
        Trenary                                             By:
/s/ Philip H.
        Trenary                                                    By:
/s/ Edward Bastian

      

      Name:
        Philip H.
        Trenary                                     
        Name: Philip H.
        Trenary                                                    Name:  Edward
        Bastian

      

      Title:
        President &
CEO                                               Title:
        President &
CEO                          
                            Title:
        Exec. Vice President & CFO

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
        A

      

      The
        Aircraft

      

      16
        CRJ-900 aircraft

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
        A-1

      

      Aircraft
        In-Service Schedule

      

      

      

      The
        Aircraft shall be available to be placed into Delta Connection service in
        accordance with the following in-service schedule:

      

      
        	
                Aircraft

              	
                In-Service
                  Date*

              
	
                2

              	
                [***]

              
	
                1

              	
                [***]

              
	
                2

              	
                [***]

              
	
                2

              	
                [***]

              
	
                1

              	
                [***]

              
	
                1

              	
                [***]

              
	
                1

              	
                [***]

              
	
                1

              	
                [***]

              
	
                2

              	
                [***]

              
	
                1

              	
                [***]

              
	
                1

              	
                [***]

              
	
                1

              	
                [***]

              

      

      

      *In-service
        dates are based on current estimates of aircraft
        deliveries.  Deliveries are to take place in the month preceding the
        aircraft in-service date listed above.  Dates may change when delivery
        schedule is finalized with the aircraft manufacturer.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
        B

      

      

      

      

      

      
        	
                Base
                  Rate Costs

              	
                Unit

              	
                Unit
                  Rates ($)

              
	 	 	 	
                2007

              	
                2008

              	
                2009

              	
                2010

              	
                2011

              	
                2012

              	
                2013

              	
                2014

              	
                2015

              	
                2016

              	
                2017

              
	 	
                Total
                  Flat Cost

              	
                Fixed

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              
	 	
                Flight
                  Ops

              	
                Completed
                  Block Hours

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              
	 	
                In-Flight

              	
                Completed
                  Block Hours

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              
	 	
                Other
                  MX

              	
                Completed
                  Block Hours

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              
	 	
                Other
                  MX

              	
                Completed
                  Departures

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              
	 	
                Maintenance
                  Overhead

              	
                Per
                  Month

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              
	 	
                Headquarter/Other
                  facilities

              	
                Per
                  Month

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              
	 	
                Dispatch

              	
                Completed
                  Departures

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              
	 	
                Overhead

              	
                Completed
                  Block Hours

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Pass-Through
                  Cost Estimates

              	
                Unit

              	
                Unit
                  Rates ($)

              
	 	 	 	
                2007

              	
                2008

              	
                2009

              	
                2010

              	
                2011

              	
                2012

              	
                2013

              	
                2014

              	
                2015

              	
                2016

              	
                2017

              
	 	
                Heavy
                  Engine

              	
                Completed
                  Block Hours

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              
	 	
                Maintenance
                  Reserve

              	
                Completed
                  Block Hours

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              
	 	
                Aircraft
                  Rent

              	
                Aircraft
                  Months

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              
	 	
                Fuel

              	
                Completed
                  Block Hours

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              
	 	
                Landing
                  Fees

              	
                Completed
                  Departures

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              
	 	
                Aviation
                  Liability Insurance

              	
                Completed
                  Block Hours

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              
	 	
                Hull
                  and War Risk Insurance

              	
                Aircraft
                  Months

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              
	 	
                Property
                  Taxes

              	
                Aircraft
                  Months

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              	
                [***]

              

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
        C

      

      

      RES
        SYSTEM EQUIPMENT

      

      

      

      Equipment,
        as defined in Section 9(B)(1) of the Agreement, may be provided to Operator
        by
        Delta for installation at one or more of the following locations of
        Operator:

      

      
        	
                1.  

              	
                Headquarters

              

      

      

      
        	
                2.  

              	
                Dispatch

              

      

      

      
        	
                3.  

              	
                Training

              

      

      

      
        	
                4.  

              	
                Maintenance
                  base for the Aircraft

              

      

      

      
        	
                5.  

              	
                Stations
                  handled by Operator, if any.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Schedule
        3

      

      Monthly
        Incentive Goals

      

      

      

      

      1.           Monthly
        Incentive Goals for monthly completion rate and monthly on-time arrival
        rate:

      

      Completion:  The
        lesser of [***] or the actual completion rate of Delta mainline operations
        in
        similar geographic markets as the Delta Connection Flights during the same
        applicable month.  A flight shall be “completed” only if it arrives
        within 4 hours of scheduled arrival.

      

      On-Time
        Arrival:  The lesser of [***] or the actual on time
        arrival rate of Delta mainline operations in similar geographic markets as
        the
        Delta Connection Flights during the same applicable month.  A flight
        shall be “on-time” if the flight arrives within 15 minutes of scheduled
        arrival.

      

      

      Semi-Annual
        Incentive Goals

      

      

      2.           Semi-Annual
        Incentive Goals for semi-annual completion rate, semi-annual on-time arrival
        rate and semi-annual customer satisfaction rating:

      

      Completion:  The
        lesser of [***] or the “Adjusted Completion Rate” of Delta mainline operations
        (“Adjusted Completion Rate” equal to Delta mainline’s actual completion rate
        plus [***] of the difference between Delta mainline’s actual completion rate and
        [***]) in similar geographic markets as the Delta Connection Flights during
        the
        same applicable semi-annual period.  A flight shall be “completed”
only if it arrives within 4 hours of scheduled arrival.

      

      On-Time
        Arrival:  The lesser of [***] or the “Adjusted Arrival
        Rate” of Delta mainline operations (Adjusted Arrival Rate equal to Delta
        mainline’s actual arrival rate plus [***] of the difference between Delta
        mainline’s actual arrival rate and [***]) in similar geographic markets as the
        Delta Connection Flights during the same applicable semi-annual
        period.  A flight shall be “on-time” if the flight arrives within 15
        minutes of scheduled arrival.

      

      Customer
        Satisfaction: Greater than the average for all regional carriers
        during the applicable semi-annual period.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Schedule
        10

      

      

      MIMIMUM
        PERFORMANCE REQUIREMENTS

      

      

      

      1.  Completion
        Rate (actual):  [***] or greater.

      

      

      2.  On-time
        Arrivals:  [***] of all flights flown or
        greater.

      

      

      3.  Overall
        Customer Satisfaction:  the industry average of all regional
        carriers.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Schedule
        11

      

      

      Termination
        Fee

      

      

      

      

      
        	
                Month
                  of Termination

              	
                 Fee
                  Payable to Operator

              
	 	 
	
                April,
                  2007

              	
                [***]

              
	
                May,
                  2007

              	
                [***]

              
	
                June,
                  2007

              	
                [***]

              
	
                July,
                  2007

              	
                [***]

              
	
                August,
                  2007

              	
                [***]

              
	
                September,
                  2007

              	
                [***]

              
	
                October,
                  2007

              	
                [***]

              
	
                November,
                  2007

              	
                [***]

              
	
                December,
                  2007

              	
                [***]

              

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Schedule
        26

      

      

      Additional
        Terms and Conditions for
Employee Non-Revenue Pass
        Travel

      

      

      
        	
                ·  

              	
                Operator
                  shall cause its eligible employees to pay to Delta a [***] per
                  eligible
                  employee yearly activation fee for Delta Travel
                  package.

              

      

      
        	
                ·  

              	
                In
                  addition, Delta shall charge Operator the following service fee
                  for each
                  itinerary flown by any Eligible Operator employee or his or her
                  eligible
                  pass riders:  [***] per mile + [***] per
                  segment.  Delta will provide such data to Operator no less
                  frequently than monthly.  Delta has right to adjust such rate
                  from time to time based on Delta’s actual cost to provide the booking and
                  flight services.

              

      

      
        	
                ·  

              	
                Delta
                  shall be entitled to withhold any such yearly activation fees and
                  service
                  fees from any payments due Operator pursuant to the
                  Agreement.

              

      

      
        	
                ·  

              	
                Each
                  (i) Operator employee dedicated to the Delta Connection operations
                  conducted by Operator and (ii) management employee of Operator
                  or Parent
                  who spends a substantive amount of his or her time supporting Operator’s
                  Delta Connection operations, and his or her eligible pass riders
                  will be
                  assigned a PPR number/passport authorization dedicated to the Delta
                  operations (e.g. 34XXXXXXX).

              

      

      
        	
                ·  

              	
                Excluding
                  Comair, Inc., Atlantic Southeast Airlines, Inc. and SkyWest Airlines,
                  Inc., the terms and conditions of Operator’s employee non-revenue pass
                  travel program will be substantially similar, in the aggregate,
                  to the
                  terms and conditions of the employee non-revenue pass travel program
                  of
                  any other Delta Connection air carrier operating under a capacity
                  purchase
                  arrangement similar to Operator’s.Exhibit 10.31 

SWDocID[[NYCORP:3016797v9:4376D:10/25/07
— 06:10 p]] 

[[NYCORP:3016797v9:4376D:10/25/07--06:10 p]]

EXECUTION COPY 

[[NYCORP:3016797v9:4376D:10/25/07--06:10 p]]

$1,000,000,000 

CREDIT AGREEMENT 

dated as of October 26,
2007, 

among 

LABORATORY CORPORATION
OF AMERICA HOLDINGS, 

THE LENDERS NAMED HEREIN 

and 

CREDIT SUISSE, 

as Administrative Agent 

     _________________ 

CREDIT SUISSE SECURITIES (USA) LLC, 

as Bookrunner and 

Lead Arranger 

[CS&M Ref No.
5865-603] 

4 

[[NYCORP:3016797v9:4376D:10/25/07--06:10 p]]

                                                 TABLE OF CONTENTS

                                                                                                               Page

                                                     ARTICLE I

                                                    Definitions

SECTION 1.01.         Defined Terms...............................................................................1
SECTION 1.02.         Terms Generally............................................................................17
SECTION 1.03.         Classification of Loans and Borrowings.....................................................18

                                                    ARTICLE II

                                                    The Credits

SECTION 2.01.         Commitments................................................................................18
SECTION 2.02.         Loans......................................................................................18
SECTION 2.03.         Competitive Bid Procedure..................................................................20
SECTION 2.04.         Borrowing Procedure........................................................................22
SECTION 2.05.         Evidence of Debt; Repayment of Loans.......................................................23
SECTION 2.06.         Fees.......................................................................................24
SECTION 2.07.         Interest on Loans..........................................................................25
SECTION 2.08.         Default Interest...........................................................................26
SECTION 2.09.         Alternate Rate of Interest.................................................................26
SECTION 2.10.         Termination and Reduction of Commitments...................................................26
SECTION 2.11.         Conversion and Continuation of Borrowings..................................................27
SECTION 2.12.         Repayment of Term Borrowings...............................................................28
SECTION 2.13.         Optional Prepayment........................................................................30
SECTION 2.14.         Reserve Requirements; Change in Circumstances..............................................30
SECTION 2.15.         Change in Legality.........................................................................32
SECTION 2.16.         Break Funding..............................................................................32
SECTION 2.17.         Pro Rata Treatment.........................................................................33
SECTION 2.18.         Sharing of Setoffs.........................................................................33
SECTION 2.19.         Payments...................................................................................34
SECTION 2.20.         Taxes......................................................................................35
SECTION 2.21.         Assignment of Commitments Under Certain Circumstances;
                      Duty to Mitigate...........................................................................37
SECTION 2.22.         Letters of Credit..........................................................................38
SECTION 2.23.         Incremental Commitments....................................................................42

                                                    ARTICLE III

                                          Representations and Warranties

SECTION 3.01.         Organization; Powers.......................................................................44
SECTION 3.02.         Authorization..............................................................................44
SECTION 3.03.         Enforceability.............................................................................44
SECTION 3.04.         Governmental Approvals.....................................................................44
SECTION 3.05.         Financial Statements.......................................................................44
SECTION 3.06.         No Material Adverse Change.................................................................45
SECTION 3.07.         Subsidiaries...............................................................................45
SECTION 3.08.         Litigation; Compliance with Laws...........................................................45
SECTION 3.09.         Federal Reserve Regulations................................................................45
SECTION 3.10.         Investment Company Act.....................................................................45
SECTION 3.11.         Use of Proceeds............................................................................45
SECTION 3.12.         Tax Returns................................................................................45
SECTION 3.13.         No Material Misstatements..................................................................46
SECTION 3.14.         Employee Benefit Plans.....................................................................46
SECTION 3.15.         Environmental Matters......................................................................46
SECTION 3.16.         Senior Indebtedness........................................................................46

                                                    ARTICLE IV

                                               Conditions of Lending

SECTION 4.01.         All Credit Events..........................................................................46
SECTION 4.02.         First Credit Event.........................................................................47

                                                     ARTICLE V

                                               Affirmative Covenants

SECTION 5.01.         Existence; Businesses and Properties.......................................................48
SECTION 5.02.         Insurance..................................................................................49
SECTION 5.03.         Obligations and Taxes......................................................................49
SECTION 5.04.         Financial Statements, Reports, etc.........................................................49
SECTION 5.05.         Litigation and Other Notices...............................................................50
SECTION 5.06.         Maintaining Records; Access to Properties and Inspections..................................50
SECTION 5.07.         Use of Proceeds............................................................................51

                                                    ARTICLE VI

                                                Negative Covenants

SECTION 6.01.         Subsidiary Indebtedness....................................................................51
SECTION 6.02.         Liens......................................................................................52
SECTION 6.03.         Sale and Lease-Back Transactions...........................................................53
SECTION 6.04.         Mergers, Consolidations and Sales of Assets................................................54
SECTION 6.05.         Restricted Payments........................................................................54
SECTION 6.06.         Business of Borrower and Subsidiaries......................................................54
SECTION 6.07.         Interest Coverage Ratio....................................................................54
SECTION 6.08.         Maximum Leverage Ratio.....................................................................54
SECTION 6.09.         Hedging Agreements.........................................................................54

                                                    ARTICLE VII

                                                 Events of Default

                                                   ARTICLE VIII

                                             The Administrative Agent

                                                    ARTICLE IX

                                                   Miscellaneous

SECTION 9.01.         Notices....................................................................................59
SECTION 9.02.         Survival of Agreement......................................................................59
SECTION 9.03.         Binding Effect.............................................................................60
SECTION 9.04.         Successors and Assigns.....................................................................60
SECTION 9.05.         Expenses; Indemnity........................................................................64
SECTION 9.06.         Right of Setoff............................................................................65
SECTION 9.07.         Applicable Law.............................................................................66
SECTION 9.08.         Waivers; Amendment.........................................................................66
SECTION 9.09.         Interest Rate Limitation...................................................................67
SECTION 9.10.         Entire Agreement...........................................................................67
SECTION 9.11.         WAIVER OF JURY TRIAL.......................................................................67
SECTION 9.12.         Severability...............................................................................67
SECTION 9.13.         Counterparts...............................................................................68
SECTION 9.14.         Headings...................................................................................68
SECTION 9.15.         Jurisdiction; Consent to Service of Process................................................68
SECTION 9.16.         Confidentiality............................................................................68
SECTION 9.17.         Termination of Existing Credit Agreement...................................................69
SECTION 9.18.         USA PATRIOT Act Notice.....................................................................69

Schedule 1.01(a)  Existing Letters of Credit
Schedule 2.01              Lenders and Commitments
Schedule 3.07              Subsidiaries

Exhibit A                  Form of Administrative Questionnaire
Exhibit B                  Form of Assignment and Acceptance
Exhibit C                  Form of Borrowing Request
Exhibit D-1                Form of Competitive Bid Request
Exhibit D-2                Form of Notice of Competitive Bid Request
Exhibit D-3                Form of Competitive Bid
Exhibit D-4                Form of Competitive Bid Accept/Reject Letter
Exhibit E-1                Form of Opinion of Chief Legal Officer of the Borrower
Exhibit E-2                Form of Opinion of Hogan & Hartson L.L.P.

                                                                                                                 38

[[NYCORP:3016797v9:4376D:10/25/07--06:10 p]]

	  	        CREDIT
AGREEMENT dated as of October 26, 2007, among LABORATORY CORPORATION OF AMERICA HOLDINGS,
a Delaware corporation (the “Borrower”), the Lenders (as defined in
Article I), and CREDIT SUISSE, as administrative agent (in such capacity, the
“Administrative Agent”) for the Lenders. 

        The
Borrower has requested the Lenders to extend credit in the form of (a) Term Loans (such
term and each other capitalized term used but not defined herein having the meaning given
it in Article I) on the Closing Date, in an aggregate principal amount not to exceed
$500,000,000, and (b) Revolving Loans at any time and from time to time prior to the
Maturity Date, in an aggregate principal amount at any time outstanding not in excess of
the Total Revolving Credit Commitment. The Borrower has also requested the Lenders to
provide a procedure pursuant to which the Borrower may invite the Lenders to bid on an
uncommitted basis on short-term borrowings by the Borrower. The Borrower has requested the
Issuing Bank to issue Letters of Credit, in an aggregate face amount at any time
outstanding not in excess of the L/C Commitment, to support payment obligations incurred
in the ordinary course of business by the Borrower and its Subsidiaries. The proceeds of
the Loans are to be used solely for general corporate purposes of the Borrower and its
Subsidiaries, including (a) working capital, (b) capital expenditures,
(c) the funding of share repurchases and other Restricted Payments permitted
hereunder, (d) acquisitions and other investments and (e) the repayment of all
amounts outstanding or due under the Existing Credit Agreement. 

        The
Lenders are willing to extend such credit to the Borrower and the Issuing Bank is willing
to issue Letters of Credit for the account of the Borrower, in each case on the terms and
subject to the conditions set forth herein. Accordingly, the parties hereto agree as
follows: 

ARTICLE I 

Definitions 

SECTION 1.01.     Defined Terms.  As used in this Agreement, the following terms shall 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. 

        “Acquisition”
shall mean the acquisition by the Borrower or any wholly owned Subsidiary of the Borrower
of all or substantially all of the assets of a person or line of business of such person,
or all or substantially all of the Equity Interests of a person, in each case where the
aggregate consideration (in whatever form) payable by the Borrower or any Subsidiary
exceeds $10,000,000. 

        “Administrative
Agent” shall have the meaning assigned to such term in the preamble to this
Agreement. 

        “Administrative
Agent Fees” shall have the meaning assigned to such term in Section 2.06(b). 

        “Administrative Questionnaire”
shall mean an Administrative Questionnaire in the form of Exhibit A, or such other form as
may be supplied from time to time by the Administrative Agent. 

        “Affiliate”
shall mean, when used 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. 

        “Aggregate
Revolving Credit Exposure” shall mean the aggregate amount of the Lenders’
Revolving Credit Exposures. 

        “Agreement”
shall mean this Credit Agreement, as the same may be amended, restated, supplemented or
otherwise modified from time to time. 

        “Alternate
Base Rate” shall mean, 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 on
the effective date of such change in the Prime Rate or the Federal Funds Effective Rate,
respectively. 

        “Applicable
Percentage” shall mean, for any day, with respect to any Eurodollar Loan (other
than any Eurodollar Competitive Loan) or with respect to the Facility Fees, as the case
may be, the applicable percentage set forth below under the caption “Eurodollar
Revolving Loan Spread”, “Facility Fee Percentage” or “Eurodollar Term
Loan Spread”, as the case may be, based upon the rating by S&P applicable on such
date to the Index Debt: 

                                          Eurodollar Revolving Loan         Facility Fee Percentage          Eurodollar
S&P Rating                                Spread                                                             Term Loan
                                                                                                             Spread
Category 1                                0.250%                            0.125%                           0.500%
Equal to or
greater than A-
Category 2                                0.350%                            0.150%                           0.625%
BBB+
Category 3                                0.450%                            0.175%                           0.750%
BBB
Category 4                                0.550%                            0.200%                           0.875%
BBB-
Category 5                                0.725%                            0.275%                           1.125%
Less than BBB-

        For
purposes of the foregoing, (a) if S&P shall not have in effect a rating for the Index
Debt (other than by reason of the circumstances referred to in the last sentence of this
definition), then S&P shall be deemed to have established a rating in Category 5; and
(b) if the rating established or deemed to have been established by S&P for the Index
Debt shall be changed (other than as a result of a change in the rating system of
S&P), such change shall be effective as of the date on which it is first announced by
S&P. Each change in the Applicable Percentage shall 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 S&P shall change, or
if S&P 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 non-availability of a rating from S&P and, pending
the effectiveness of any such amendment, the Applicable Percentage shall be determined by
reference to the rating most recently in effect prior to such change or cessation. 

        “Assignment
and Acceptance” shall mean an assignment and acceptance 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 B or such other form as shall be approved by the Administrative Agent. 

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

        “Borrower”
shall have the meaning assigned to such term in the preamble to this Agreement. 

        “Borrowing”
shall mean (a) Loans of the same Class and 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 Borrowing described in the definition of the term “Competitive
Borrowing”. 

        “Borrowing
Request” shall mean a request by the Borrower in accordance with the terms of
Section 2.04. 

        “Business
Day” shall mean any day other than a Saturday, Sunday or day on which banks in
New York City are authorized or required by law to close; provided, however,
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 shall mean 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. 

        A
“Change in Control” shall be deemed to have occurred if (a) any
person or group (within the meaning of Rule 13d-5 of the Securities Exchange Act of
1934 as in effect on the date hereof) shall own directly or indirectly, beneficially or of
record, shares representing more than 40% of the aggregate ordinary voting power
represented by the issued and outstanding capital stock of the Borrower or (b) a
majority of the seats (other than vacant seats) on the board of directors of the Borrower
shall at any time be occupied by persons who were neither (i) nominated by the board
of directors of the Borrower nor (ii) appointed by directors so nominated. 

        “Change
in Law” shall mean (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 2.13, by any
lending office of such Lender or by such Lender’s or 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 date of this Agreement. 

        “Class”,
when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans
comprising such Borrowing, are Revolving Loans, Term Loans or Competitive Loans and, when
used in reference to any Commitment, refers to whether such Commitment is a Revolving
Credit Commitment or Term Loan Commitment. 

        “Closing
Date” shall mean October 26, 2007. 

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

        “Commitment”
shall mean, with respect to any Lender, such Lender’s Revolving Credit Commitment or
Term Loan Commitment. 

        “Competitive
Bid” shall mean an offer by a Lender to make a Competitive Loan pursuant to
Section 2.03(b) in the form of Exhibit D-3. 

        “Competitive
Bid Accept/Reject Letter” shall mean a notification made by the Borrower pursuant
to Section 2.03(d) in the form of Exhibit D-4. 

        “Competitive
Bid Rate” shall mean, as to any Competitive Bid, (a) in the case of a
Eurodollar Loan, the Margin, and (b) in the case of a Fixed Rate Loan, the fixed rate
of interest offered by the Lender making such Competitive Bid. 

        “Competitive
Bid Request” shall mean a request made by the Borrower pursuant to
Section 2.03(a). 

        “Competitive
Borrowing” shall mean a Borrowing consisting of a Competitive Loan or concurrent
Competitive Loans from the Lender or Lenders whose Competitive Bids for such Borrowing
have been accepted by the Borrower under the bidding procedure described in
Section 2.03. 

        “Competitive
Loan” shall mean a Loan from a Lender to the Borrower pursuant to the bidding
procedure described in Section 2.03. Each Competitive Loan shall be a Eurodollar
Competitive Loan or a Fixed Rate Loan. 

        “Confidential
Information Memorandum” shall mean the Confidential Information Memorandum of the
Borrower dated October 2007. 

        “Consolidated
EBITDA” shall mean, for any period, Consolidated Net Income for such period plus
(a) without duplication and to the extent deducted in determining such Consolidated Net
Income, the sum of (i) consolidated interest expense net of interest income for such
period, (ii) consolidated income tax expense for such period, (iii) all amounts
attributable to depreciation and amortization for such period and (iv) any extraordinary
charges and all non-cash write-offs and write-downs of amortizable and depreciable items
for such period, and minus (b) without duplication, to the extent included in determining
such Consolidated Net Income, any extraordinary gains and all non-cash items of income for
such period, all determined on a consolidated basis in accordance with GAAP. 

        “Consolidated
Interest Expense” shall mean, for any period, the interest expense (including (a)
imputed interest expense in respect of Capital Lease Obligations and (b) the amortization
of original issue discount in connection with the Subordinated Notes and other
Indebtedness issued with original issue discount) of the Borrower and the Subsidiaries for
such period, net of interest income, in each case determined on a consolidated basis in
accordance with GAAP. For purposes of the foregoing, interest expense shall be determined
after giving effect to any net payments made or received by the Borrower or any Subsidiary
with respect to interest rate Hedging Agreements. 

        “Consolidated
Net Income” shall mean, for any period, the net income or loss of the Borrower
and the Subsidiaries for such period determined on a consolidated basis in accordance with
GAAP. 

        “Consolidated
Total Assets” shall mean, as of any date, the amount of total assets as shown on
the consolidated balance sheet of the Borrower for the most recent fiscal quarter for
which financial statements have been delivered pursuant to Section 5.04(a) or (b),
prepared in accordance with GAAP. 

        “Control”
shall mean 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 ownership of
voting securities, by contract or otherwise, and the terms “Controlling”
and “Controlled” shall have meanings correlative thereto. 

        “Credit
Event” shall have the meaning assigned to such term in Section 4.01. 

        “Default”
shall mean any event or condition which upon notice, lapse of time or both would
constitute an Event of Default. 

        “dollars”
or “$” shall mean lawful money of the United States of America. 

        “Eligible
Assignee” shall mean any commercial bank, insurance company, investment or mutual
fund or other entity (but not any natural person) that is an “accredited
investor” (as defined in Regulation D under the Securities Act of 1933 as amended)
that extends credit or invests in bank loans as one of its businesses; provided
that (a) neither the Borrower nor any of its Affiliates shall be an Eligible Assignee and
(b) unless an Event of Default has occurred and is continuing, any proposed assignee of
Revolving Credit Commitments must have total assets in excess of $500,000,000 to be
considered an Eligible Assignee. 

        “Environmental
Laws” shall mean all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments or injunctions issued, promulgated or entered into by any Governmental
Authority, relating to the environment, the preservation or reclamation of natural
resources, the management or release of Hazardous Materials or to the effect of the
environment on human health and safety. 

        “Environmental
Liability” shall mean liabilities, obligations, claims, actions, suits, judgments
or orders under or relating to any Environmental Law for any damages, injunctive relief,
losses, fines, penalties, fees, expenses (including fees and expenses of attorneys and
consultants) or costs, whether contingent or otherwise, including those arising from or
relating to (a) any action to address the on- or off-site presence, release of, or
exposure to, Hazardous Materials, (b) permitting and licensing, governmental
administrative oversight and financial assurance requirements, (c) any personal
injury (including death), any property damage (real or personal) or natural resource
damage and (d) the violation of any Environmental Law. 

        “Equity
Interests” shall mean shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity
interests in any person, or any obligations convertible into or exchangeable for, or
giving any person a right, option or warrant to acquire such equity interests or such
convertible or exchangeable obligations; provided that the Subordinated Notes are
deemed not to constitute Equity Interests of the Borrower. 

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

        “ERISA
Affiliate” shall mean 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” shall mean (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) prior to the
effectiveness of the applicable provisions of the Pension Act, 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) or, on and after the
effectiveness of the applicable provisions of the Pension Act, any failure by any Plan to
satisfy the minimum funding standard (within the meaning of Section 412 of the Code or
Section 302 of ERISA) applicable to such Plan, in each case whether or not waived,
(c) the filing pursuant to, prior to the effectiveness of the applicable provisions
of the Pension Act, Section 412(d) of the Code or Section 303(d) of ERISA or, on
and after the effectiveness of the applicable provisions of the Pension Act, Section
412(c) of the Code or Section 302(c) of ERISA, of an application for a waiver of the
minimum funding standard with respect to any Plan, (d) on and after the effectiveness of
the applicable provisions of the Pension Act, a determination that any Plan is, or is
expected to be, in “at-risk” status (as defined in Section 303(i)(4) of ERISA or
Section 430(i)(4) of the Code), (e) 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 or the withdrawal or partial withdrawal of the Borrower or any of
its ERISA Affiliates from any Plan or Multiemployer Plan, (f) the receipt by the
Borrower or any of its ERISA Affiliates from the PBGC or a plan administrator of any
notice relating to the intention to terminate any Plan or Plans or to appoint a trustee to
administer any Plan, (g) prior to the effectiveness of the applicable provisions of the
Pension Act, the adoption of any amendment to a Plan that would require the provision of
security pursuant to Section 401(a)(29) of the Code or Section 307 of ERISA, (h) the
receipt by the Borrower or any of its ERISA Affiliates of any notice, or the receipt by
any Multiemployer Plan from the Borrower or any of its ERISA Affiliates 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 or, on and after the effectiveness of the applicable provisions of
the Pension Act, in endangered or critical status, within the meaning of Section 305 of
ERISA; or (i) the occurrence of a “prohibited transaction” with respect to
which the Borrower or any of the Subsidiaries is a “disqualified person” (within
the meaning of Section 4975 of the Code) or with respect to which the Borrower or any such
Subsidiary could otherwise be liable. 

        “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
LIBO Rate. 

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

        “Excluded
Taxes” shall mean, 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, franchise or similar taxes imposed on
(or measured by) its net income by the United States of America, the jurisdiction under
the laws of which such recipient is organized or in which its principal office is located
(or, in the case of any Lender, in which its applicable lending office is located), or, in
the case of a jurisdiction that imposes taxes on the basis of management or control or
other concept or principle of residence, the jurisdiction in which such recipient is so
resident, (b) Taxes imposed by reason of any present or former connection between such
person and the jurisdiction imposing such Taxes, other than solely as a result of the
execution and delivery of this Agreement, the making of any Loans hereunder or the
performance of any action provided for hereunder, (c) 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 (d) in the case of a Foreign Lender (other than as an assignee
pursuant to a request by the Borrower under Section 2.21(a)), any withholding tax that (i)
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), 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 2.20(a) or (ii) is
attributable to such Foreign Lender’s failure to comply with Section 2.20(e). 

        “Existing
Credit Agreement” shall mean the Credit Agreement dated as of January 13, 2005,
as amended, among the Borrower, the lenders from time to time party thereto, and Credit
Suisse (formerly known as Credit Suisse First Boston), as administrative agent. 

        “Existing
Letter of Credit” shall mean each letter of credit previously issued for the
account of the Borrower that (a) is outstanding on the Closing Date and (b) is listed on
Schedule 1.01(a). 

        “Facility
Fee” shall have the meaning assigned to such term in Section 2.06(a). 

        “Federal
Funds Effective Rate” shall mean, 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
the day for such transactions received by the Administrative Agent from three Federal
funds brokers of recognized standing selected by it. 

        “Fee
Letter” shall mean the Fee Letter dated September 26, 2007, between the Borrower
and the Administrative Agent, as amended, supplemented or otherwise modified from time to
time. 

        “Fees”
shall mean the Facility Fees, the Administrative Agent Fees, the L/C Participation Fees
and the Issuing Bank Fees. 

        “Financial
Officer” of any person shall mean the chief financial officer, principal
accounting officer, Treasurer or Controller of such person. 

        “Fixed
Rate Borrowing” shall mean a Borrowing comprised of Fixed Rate Loans. 

        “Fixed Rate
Loan” shall mean any Competitive Loan bearing interest at a fixed percentage rate
per annum (expressed in the form of a decimal to no more than four decimal places)
specified by the Lender making such Loan in its Competitive Bid. 

        “Foreign
Lender” shall mean 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. 

        “GAAP”
shall mean generally accepted accounting principles applied on a consistent basis. 

        “Governmental
Authority” shall mean any Federal, state, local or foreign court or governmental
agency, authority, instrumentality or regulatory body. 

        “Granting
Lender” shall have the meaning assigned to such term in Section 9.04(i). 

        “Guarantee”
of or by any person (the “guarantor”) shall mean any obligation,
contingent or otherwise, of such person guaranteeing or having the economic effect of
guaranteeing any Indebtedness 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 to purchase (or to advance or supply
funds for the purchase of) any security for the payment of such Indebtedness, (b) to
purchase or lease property, securities or services for the purpose of assuring the owner
of such Indebtedness of the payment of such Indebtedness or other obligation, (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 (d) as an account party in respect of any letter of credit or letter
of guaranty issued to support such Indebtedness; provided, however, that the
term “Guarantee” shall not include endorsements for collection or deposit in the
ordinary course of business. 

        “Hazardous
Materials” shall mean (a) petroleum products and byproducts, asbestos, urea
formaldehyde foam insulation, polychlorinated biphenyls, radon gas, chlorofluorocarbons
and all other ozone-depleting substances and (b) any chemical, material, substance,
waste, pollutant or contaminant that is prohibited, limited or regulated by or pursuant to
any Environmental Law. 

        “Hedging
Agreement” shall mean any interest rate protection agreement, foreign currency
exchange agreement, commodity price protection agreement or other interest or currency
exchange rate or commodity price hedging arrangement. 

        “Incremental
Commitment” shall mean the Revolving Credit Commitment of any Lender established
pursuant to Section 2.23. 

        “Incremental
Commitment Assumption Agreement” shall mean an Incremental Commitment Assumption
Agreement in form and substance reasonably satisfactory to the Administrative Agent, among
the Borrower, the Administrative Agent, and one or more Incremental Lenders and, if
applicable, the Issuing Bank. 

        “Incremental
Commitment Amount” shall mean, at any time, the excess, if any, of $150,000,000
over the aggregate amount of all Incremental Commitments established prior to such time
pursuant to Section 2.23. 

        “Incremental
Lender” shall mean a Lender with an Incremental Commitment. 

        “Indebtedness”
of any person shall mean, without duplication, (a) all obligations of such person for
borrowed money, (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 or assets purchased by such
person, (d) all obligations of such person issued or assumed as the deferred purchase
price of property or services (excluding trade accounts payable and accrued obligations
incurred in the ordinary course of business), (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 obligations secured thereby have 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 obligations of such person to make contingent cash payments in respect of any
acquisition, to the extent such obligations are or are required to be shown as liabilities
on the balance sheet of such person in accordance with GAAP. The Indebtedness of any
person shall include the Indebtedness of any other entity (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. 

        “Indemnified
Taxes” shall mean Taxes other than Excluded Taxes. 

        “Index
Debt” shall mean the senior, unsecured, non-credit enhanced, long-term
indebtedness for borrowed money of the Borrower. 

        “Interest
Coverage Ratio” shall mean, for any period, the ratio of (a) Consolidated EBITDA
for such period to (b) Consolidated Interest Expense for such period. 

        “Interest
Payment Date” shall mean (a) with respect to any ABR Loan, the last Business
Day of each March, June, September and December and (b) with respect to any Eurodollar
Loan or Fixed Rate Borrowing, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part or such Fixed Rate Borrowing, as the case may be,
and, in the case of a Eurodollar Borrowing with an Interest Period of more than three
months’ duration or a Fixed Rate Borrowing with an Interest Period of more than 90
days’ duration, each day that would have been an Interest Payment Date had successive
Interest Periods of three months’ or 90 days’ duration, respectively, been
applicable to such Borrowing. 

        “Interest
Period” shall mean, (a) with respect to any Eurodollar Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically corresponding day
(or, if there is no numerically corresponding day, on the last day) in the calendar month
that is 1, 2, 3 or 6 months thereafter, as the Borrower may elect, and
(b) with respect to any Fixed Rate Borrowing, the period commencing on the date of
such Borrowing and ending on the date specified in the Competitive Bids in which the
offers to make the Fixed Rate Loans comprising such Borrowing were extended, which shall
not be earlier than 30 days after the date of such Borrowing or later than 360 days after
the date of such Borrowing; provided, however, that 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, in the case of a Eurodollar Borrowing only, 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. Interest shall accrue from
and including the first day of an Interest Period to but excluding the last day 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” shall mean, as the context may require, (a) Credit Suisse, in its capacity
as the issuer of Letters of Credit hereunder, (b) with respect to each Existing Letter of
Credit, the Lender that issued such Existing Letter of Credit, and (c) any other Lender
that may become an Issuing Bank pursuant to Section 2.22(i) or 2.22(k), with respect
to Letters of Credit issued by such Lender. The Issuing Bank may, in its discretion,
arrange for one or more Letters of Credit to be issued by Affiliates of the Issuing Bank,
in which case the term “Issuing Bank” shall include any such Affiliate with
respect to Letters of Credit issued by such Affiliate. 

        “Issuing
Bank Fees” shall have the meaning assigned to such term in Section 2.06(c). 

        “L/C
Commitment” shall mean the commitment of the Issuing Bank to issue Letters of
Credit pursuant to Section 2.22. The aggregate amount of the L/C Commitment on the
Closing Date is $125,000,000. The L/C Commitment may be increased from time to time
pursuant to Section 2.23(a). 

        “L/C
Disbursement” shall mean a payment or disbursement made by the Issuing Bank
pursuant to a Letter of Credit. 

        “L/C
Exposure” shall mean at any time the sum of (a) the aggregate undrawn amount of
all outstanding Letters of Credit at such time and (b) the aggregate principal amount
of all L/C Disbursements that have not yet been reimbursed at such time. The L/C Exposure
of any Lender at any time shall equal its Pro Rata Percentage of the aggregate L/C
Exposure at such time. 

        “L/C
Participation Fee” shall have the meaning assigned to such term in
Section 2.06(c). 

        “Lenders”
shall mean (a) the persons listed on Schedule 2.01 and (b) any person that has become
a party hereto pursuant to an Assignment and Acceptance or an Incremental Commitment
Assumption Agreement (in each case, other than any such person that has ceased to be a
party hereto pursuant to an Assignment and Acceptance). 

        “Letter
of Credit” shall mean any letter of credit issued pursuant to Section 2.22
and any Existing Letter of Credit. 

        “Leverage
Ratio” shall mean, on any date, the ratio of Total Debt on such date to
Consolidated EBITDA for the period of four consecutive fiscal quarters most recently ended
on or prior to such date. Solely for purposes of this definition, if at the time of any
determination of the Leverage Ratio an Acquisition shall have been completed during the
relevant period, the Consolidated EBITDA for such period shall be reformulated on a pro
forma basis to give effect to such Acquisition as if it had occurred on the first day of
such period. For purposes of the foregoing, all pro forma adjustments shall be (a) only
those required or permitted by Regulation S-X of the Securities Act of 1933 or otherwise
based on reasonably detailed written assumptions reasonably acceptable to the
Administrative Agent and (b) certified by a Financial Officer of the Borrower as having
been prepared in good faith based upon reasonable assumptions. 

        “LIBO
Rate” shall mean, with respect to any Eurodollar Borrowing for any Interest
Period, the rate per annum determined by the Administrative Agent at approximately 11:00
a.m., London time, on the date that is two Business Days prior to the commencement of such
Interest Period by reference to the British Bankers’ Association Interest Settlement
Rates for deposits in dollars (as set forth by the Bloomberg Information Service or any
successor thereto or any other service selected by the Administrative Agent which has been
nominated by the British Bankers’ Association as an authorized information vendor for
the purpose of displaying such rates) for a period equal to such Interest Period;
provided that, to the extent that an interest rate is not ascertainable pursuant to
the foregoing provisions of this definition, the “LIBO Rate” shall be the
interest rate per annum determined by the Administrative Agent to be the average of the
rates per annum at which dollar deposits of $10,000,000 are offered for such relevant
Interest Period to major banks in the London interbank market in London, England by the
Administrative Agent at approximately 11:00 a.m. (London time) on the date that is
two Business Days prior to the beginning of such Interest Period. 

        “Lien”
shall mean, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
encumbrance, charge or security interest in or on such asset or (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. 

        “Loans”
shall mean the Revolving Loans, the Term Loans and the Competitive Loans. 

        “Margin”
shall mean, as to any Eurodollar Competitive Loan, the margin (expressed as a percentage
rate per annum in the form of a decimal to no more than four decimal places) to be added
to or subtracted from the LIBO Rate in order to determine the interest rate applicable to
such Loan, as specified in the Competitive Bid relating to such Loan. 

        “Margin
Stock” shall have the meaning assigned to such term in Regulation U. 

        “Material
Adverse Effect” shall mean a materially adverse effect on the financial
condition, results of operations or business of the Borrower and the Subsidiaries, taken
as a whole. 

        “Material
Indebtedness” shall mean Indebtedness (other than the Loans and Letters of
Credit), or obligations in respect of one or more Hedging Agreements, of any one or more
of the Borrower and the Subsidiaries in an aggregate principal amount exceeding
$50,000,000. For purposes of determining Material Indebtedness, the “principal
amount” of the obligations of the Borrower or any Subsidiary in respect of any
Hedging Agreement at any time shall be the maximum aggregate amount (giving effect to any
netting agreements) that the Borrower or such Subsidiary would be required to pay if such
Hedging Agreement were terminated at such time. 

        “Material
Subsidiary” shall mean at any time any Subsidiary, except Subsidiaries which, if
aggregated and considered as a single Subsidiary, would not meet the definition of a
“significant subsidiary” contained as of the date hereof in Regulation S-X of
the Securities and Exchange Commission. 

      “Maturity
Date” shall mean October 26, 2012 

        “Moody’s”
shall mean Moody’s Investors Service, Inc. 

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

        “Other
Taxes” shall mean any and all present or future stamp or documentary taxes or any
other excise or property taxes, charges or similar levies arising from any payment made
under this Agreement or from the execution, delivery or enforcement of, or otherwise with
respect to, this Agreement. 

        “PBGC”
shall mean the Pension Benefit Guaranty Corporation referred to and defined in ERISA. 

        “Pension
Act” shall mean the Pension Protection Act of 2006, as amended from time to time. 

      “Permitted
Investments” shall mean: 

     (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 foreign and domestic commercial paper maturing within 270 days
          from the date of acquisition thereof and having, at such date of acquisition,
          the highest credit rating obtainable from S&P or from Moody’s; 

     (c)    
          investments in certificates of deposit, banker’s acceptances and time
          deposits maturing within one year from the date of acquisition thereof issued or
          guaranteed by or placed with, and money market deposit accounts issued or
          offered by, the Administrative Agent or any domestic office of any commercial
          bank organized under the laws of the United States of America or any State
          thereof that 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 of clause (c) above; 

     (e)    
          investments in “money market funds” within the meaning of Rule 2a-7 of
          the Investment Company Act of 1940, as amended, substantially all of whose
          assets are invested in investments of the type described in clauses (a) through
          (d) above; 

     (f)    
          investments in so-called market auction securities rated Aa2 or higher by
          Moody’s or AA or higher by S&P and which have a reset date not more
          than 365 days from the date of acquisition thereof; and 

     (g)    
          investments in readily-marketable obligations of Indebtedness of any State of
          the United States or any municipality organized under the laws of any State of
          the United States or any political subdivision thereof which, at the time of
          acquisition, are accorded either of the two highest ratings by S&P,
          Moody’s or another nationally recognized credit rating agency of similar
          standard, in any such case maturing no later than one year after the date of
          acquisition thereof. 

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

        “Plan”
shall mean 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” shall mean the rate of interest per annum publicly announced from time to
time by the Administrative Agent as its prime rate in effect at its principal office in
New York City; each change in the Prime Rate shall be effective on the date such change is
publicly announced as being effective. 

        “Pro
Rata Percentage” of any Revolving Credit Lender at any time shall mean the
percentage of the Total Revolving Credit Commitment represented by such Lender’s
Revolving Credit Commitment. In the event the Revolving Credit Commitments shall have
expired or been terminated, the Pro Rata Percentages shall be determined on the basis of
the Revolving Credit Commitments most recently in effect, giving effect to any subsequent
assignments. 

        “Register”
shall have the meaning assigned to such term in Section 9.04(d). 

        “Regulation
T” shall mean Regulation T of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof. 

        “Regulation
U” shall mean Regulation U of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof. 

        “Regulation X”
shall mean Regulation X of the Board as from time to time in effect and all official
rulings and interpretations thereunder or thereof. 

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

        “Repayment
Date” shall have the meaning assigned to such term in Section 2.12. 

        “Required
Lenders” shall mean, at any time, Lenders having Revolving Credit Commitments
(or, if the Revolving Credit Commitments have terminated, Revolving Credit Exposure and
Competitive Loans) and Term Loans representing at least a majority of the sum of the Total
Revolving Credit Commitment (or if the Revolving Credit Commitments have terminated, the
aggregate amount of Revolving Credit Exposure and Competitive Loans outstanding) and the
aggregate amount of the Term Loans outstanding at such time or, for purposes of
acceleration pursuant to clause (ii) of the last paragraph of Article VII, Lenders having
Loans, L/C Exposures and unused Revolving Credit Commitments representing at least a
majority of the sum of all Loans outstanding, L/C Exposure and unused Revolving Credit
Commitments. 

        “Restricted
Payment” shall mean (a) any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests in the Borrower or any
Subsidiary, or (b) any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, other than a payment to the extent
consisting of Equity Interests of equal or junior ranking, on account of the purchase,
redemption, retirement, acquisition, cancelation or termination of any Equity Interests in
the Borrower or any Subsidiary. It is understood that the withholding of shares, and the
payment of cash to the Internal Revenue Service in an amount not to exceed the value of
the withheld shares, by the Borrower in connection with any of its stock incentive plans
shall not constitute Restricted Payments. 

        “Revolving
Credit Borrowing” shall mean a Borrowing comprised of Revolving Loans. 

        “Revolving Credit
Commitment” shall mean, with respect to each Lender, the commitment of such
Lender to make Revolving Loans hereunder (and to acquire participations in Letters of
Credit as provided for herein) as set forth on Schedule 2.01, or in the Assignment
and Acceptance pursuant to which such Lender assumed its Revolving Credit Commitment, as
applicable, as the same may be (a) reduced from time to time pursuant to
Section 2.10, (b) increased from time to time pursuant to Section 2.23 and (c)
reduced or increased from time to time pursuant to assignments by or to such Lender
pursuant to Section 9.04. 

        “Revolving
Credit Exposure” shall mean, with respect to any Lender at any time, the
aggregate principal amount at such time of all outstanding Revolving Loans of such Lender,
plus the aggregate amount at such time of such Lender’s L/C Exposure. 

        “Revolving
Credit Lender” shall mean a Lender with a Revolving Credit Commitment or
outstanding Revolving Credit Exposure. 

        “Revolving
Loans” shall mean the revolving loans made by the Lenders to the Borrower
pursuant to clause (b) of Section 2.01. Each Revolving Loan shall be a Eurodollar
Revolving Loan or an ABR Revolving Loan. 

        “S&P”
shall mean Standard & Poor’s Ratings Service. 

        “SPC”
shall have the meaning assigned to such term in Section 9.04(i). 

        “Subordinated
Notes” shall mean the Borrower’s zero coupon subordinated Liquid Yield
Option Notes due 2021 (LYONS) and Zero Coupon Convertible Subordinated Notes due 2021, in
an aggregate principal amount at maturity of $741,348,000, and any other Indebtedness
subordinated to the Loans that refinances all or any portion of such notes or for which
all or any portion of such notes are exchanged. 

        “Subordinated
Note Documents” shall mean the indenture under which the Subordinated Notes were
issued and all other instruments, agreements and other documents evidencing or governing
the Subordinated Notes or providing for any Guarantee or other right in respect thereof. 

        “subsidiary”
shall mean, with respect to any person (herein referred to as the
“parent”), any corporation, partnership, association or other business
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 more than 50% of the
general partnership interests are, at the time any determination is being made, owned,
controlled or held, or (b) that is, at the time any determination is made, 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”
shall mean any subsidiary of the Borrower. 

        “Synthetic
Purchase Agreement” shall mean any swap, derivative or other agreement or
combination of agreements pursuant to which the Borrower or any Subsidiary is or may
become obligated to make (a) any payment in connection with a purchase by any third party
from a person other than the Borrower or any Subsidiary of any Equity Interest or (b) any
payment (other than on account of a permitted purchase by it of any Equity Interest) the
amount of which is determined by reference to the price or value at any time of any Equity
Interest; provided that no phantom stock or similar plan providing for payments
only to current or former directors, officers or employees of the Borrower or the
Subsidiaries (or to their heirs or estates) shall be deemed to be a Synthetic Purchase
Agreement. 

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

        “Term
Borrowing” shall mean a Borrowing comprised of Term Loans. 

        “Term Lender”
shall mean a Lender with a Term Loan Commitment or an outstanding Term Loan. 

        “Term
Loan Commitment” shall mean, with respect to each Lender, the commitment of such
Lender to make Term Loans hereunder as set forth on Schedule 2.01, or in the
Assignment and Acceptance pursuant to which such Lender assumed its Term Loan Commitment,
as applicable, as the same may be (a) reduced from time to time pursuant to
Section 2.10 and (b) reduced or increased from time to time pursuant to assignments
by or to such Lender pursuant to Section 9.04. 

        “Term
Loans” shall mean the term loans made by the Lenders to the Borrower pursuant to
clause (a) of Section 2.01. 

        “Total
Debt” shall mean, at any time, the total Indebtedness of the Borrower and the
Subsidiaries at such time (excluding Indebtedness of the type described in clause (h)
of the definition of such term, except to the extent of any unreimbursed drawings
thereunder). 

        “Total
Revolving Credit Commitment” shall mean, at any time, the aggregate amount of the
Revolving Credit Commitments, as in effect at such time. The Total Revolving Credit
Commitment on the Closing Date is $500,000,000. 

        “Transactions”
shall have the meaning assigned to such term in Section 3.02. 

        “Type”,
when used in respect of any Loan or Borrowing, shall refer to the Rate by reference to
which interest on such Loan or on the Loans comprising such Borrowing is determined. For
purposes hereof, the term “Rate” shall include the LIBO Rate and the
Alternate Base Rate. 

        “USA
PATRIOT Act” shall mean The Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001
(Title III of Pub. L. No. 107-56 (signed into law October 26, 2001)). 

        “wholly
owned Subsidiary” of any person shall mean a subsidiary of such person of which
securities (except for directors’ qualifying shares) or other ownership interests
representing 100% of the Equity Interests are, at the time any determination is being
made, owned, Controlled or held by such person or one or more wholly owned Subsidiaries of
such person or by such person and one or more wholly owned Subsidiaries of such person. 

        “Withdrawal
Liability” shall mean 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. Terms Generally.
The definitions in Section 1.01 shall apply equally to both 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”; and the words
“asset” and “property” shall be construed as having 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. All references herein to
Articles, Sections, Exhibits and Schedules shall be deemed references to Articles and
Sections of, and Exhibits and Schedules to, this Agreement unless the context shall
otherwise require. 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, however, that if the Borrower notifies the
Administrative Agent that the Borrower wishes to amend any covenant in Article VI or
any related definition to eliminate the effect of any change in GAAP occurring after the
date of this Agreement on the operation of such covenant (or if the Administrative Agent
notifies the Borrower that the Required Lenders wish to amend Article VI or any
related definition for such purpose), then the Borrower’s compliance with such
covenant shall be determined on the basis of GAAP in effect immediately before the
relevant change in GAAP became effective, until either such notice is withdrawn or such
covenant is amended in a manner satisfactory to the Borrower and the Required Lenders. 

SECTION 1.03. Classification of
Loans and Borrowings. For purposes of this Agreement, Loans may be classified and
referred to by Class (e.g., a “Revolving Loan”) or by Type (e.g.,
a “Eurodollar Loan”) or by Class and Type (e.g., a “Eurodollar
Revolving Loan”). Borrowings also may be classified and referred to by Class
(e.g., a “Revolving Credit Borrowing”) or by Type (e.g., a
“Eurodollar Borrowing”) or by Class and Type (e.g., a “Eurodollar
Revolving Credit Borrowing”). 

ARTICLE II 

The Credits 

SECTION 2.01. Commitments.
Subject to the terms and conditions and relying upon the representations and warranties
herein set forth, each Lender agrees, severally and not jointly, (a) to make a Term
Loan to the Borrower on the Closing Date in a principal amount not to exceed its Term
Loan Commitment, and (b) to make Revolving Loans to the Borrower, at any time and from
time to time on or after the date hereof, and until the earlier of the Maturity Date
and the termination of the Revolving Credit Commitment of such Lender in accordance with
the terms hereof, in an aggregate principal amount at any time outstanding that will not
result in such Lender’s Revolving Credit Exposure exceeding such Lender’s
Revolving Credit Commitment minus the amount by which the outstanding Competitive
Borrowings shall be deemed to have utilized such Revolving Credit Commitment in accordance
with Section 2.17. Within the limits set forth in clause (b) of the preceding
sentence and subject to the terms, conditions and limitations set forth herein, the
Borrower may borrow, pay or prepay and reborrow Revolving Loans. Amounts paid or prepaid
in respect of Term Loans may not be reborrowed. 

SECTION 2.02. Loans. (a) Each
Loan (other than Competitive Loans) shall be made as part of a Borrowing consisting of
Loans made by the Lenders ratably in accordance with their respective applicable
Commitments; provided, however, that the failure of any Lender to make any
Loan shall not in itself relieve any other Lender of its obligation to lend hereunder (it
being understood, however, that no Lender shall be responsible for the failure of any
other Lender to make any Loan required to be made by such other Lender). Each Competitive
Loan shall be made in accordance with the procedures set forth in Section 2.03.
Except for Loans deemed made pursuant to Section 2.02(f), the Loans comprising any
Borrowing shall be in an aggregate principal amount that is (i) an integral multiple of
$1,000,000 and not less than $10,000,000 or (ii) equal to the remaining available balance
of the applicable Commitments. 

     (b)    
          Subject to Sections 2.09 and 2.15, each Competitive Borrowing shall be
          comprised entirely of Eurodollar Competitive Loans or Fixed Rate Loans, and each
          other Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as
          the Borrower may request pursuant to Section 2.03 or 2.04, as applicable.
          Each Lender may at its option 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. Borrowings of
          more than one Type may be outstanding at the same time; provided,
          however, that the Borrower shall not be entitled to request any Borrowing
          that, if made, would result in more than 15 Eurodollar Borrowings
          outstanding hereunder at any time. For purposes of the foregoing, Borrowings
          having different Interest Periods, regardless of whether they commence on the
          same date, shall be considered separate Borrowings. 

     (c)    
          Except with respect to Loans made pursuant to Section 2.02(f), each Lender
          shall make each Loan to be made by it hereunder on the proposed date thereof by
          wire transfer of immediately available funds to such account in New York City as
          the Administrative Agent may designate not later than 1:00 p.m., New York
          City time, and the Administrative Agent shall promptly credit the amounts so
          received to an account in the name of the Borrower and designated by the
          Borrower in the applicable Borrowing Request or Competitive Bid Request or, if a
          Borrowing shall not occur on such date because any condition precedent herein
          specified shall not have been met, return the amounts so received to the
          respective Lenders. 

     (d)    
          Unless the Administrative Agent shall have received notice from a Lender prior
          to the date of any Borrowing that such Lender will not make available to the
          Administrative Agent such Lender’s portion of such Borrowing, the
          Administrative Agent may assume that such Lender has made such portion available
          to the Administrative Agent on the date of such Borrowing in accordance with
          paragraph (c) above and the Administrative Agent may, in reliance upon such
          assumption, make available to the Borrower on such date a corresponding amount.
          If the Administrative Agent shall have so made funds available then, to the
          extent that such Lender shall not have made such portion available to the
          Administrative Agent, such Lender and the Borrower severally agree to repay to
          the Administrative Agent forthwith on demand such corresponding amount together
          with interest thereon, for each day from the date such amount is made available
          to the Borrower until the date such amount is repaid to the Administrative Agent
          at (i) in the case of the Borrower, the interest rate applicable at the
          time to the Loans comprising such Borrowing and (ii) in the case of such
          Lender, a rate determined by the Administrative Agent to represent its cost of
          overnight or short-term funds (which determination shall be conclusive absent
          manifest error). If such Lender shall repay to the Administrative Agent such
          corresponding amount, such amount shall constitute such Lender’s Loan as
          part of such Borrowing for purposes of this Agreement. 

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

     (f)    
          If the Issuing Bank shall not have received from the Borrower the payment
          required to be made by Section 2.22(e) within the time specified in such
          Section, the Issuing Bank will promptly notify the Administrative Agent of the
          L/C Disbursement and the Administrative Agent will promptly notify each
          Revolving Credit Lender of such L/C Disbursement and its Pro Rata Percentage
          thereof. Each Revolving Credit Lender shall pay by wire transfer of immediately
          available funds to the Administrative Agent not later than 2:00 p.m., New York
          City time, on such date (or, if such Revolving Credit Lender shall have received
          such notice later than 12:00 (noon), New York City time, on any day, not later
          than 10:00 a.m., New York City time, on the immediately following Business Day),
          an amount equal to such Lender’s Pro Rata Percentage of such L/C
          Disbursement (it being understood that such amount shall be deemed to constitute
          an ABR Revolving Loan of such Lender and such payment shall be deemed to have
          reduced the L/C Exposure), and the Administrative Agent will promptly pay to the
          Issuing Bank amounts so received by it from the Revolving Credit Lenders. The
          Administrative Agent will promptly pay to the Issuing Bank any amounts received
          by it from the Borrower pursuant to Section 2.22(e) prior to the time that
          any Revolving Credit Lender makes any payment pursuant to this paragraph (f);
          any such amounts received by the Administrative Agent thereafter will be
          promptly remitted by the Administrative Agent to the Revolving Credit Lenders
          that shall have made such payments and to the Issuing Bank, as their interests
          may appear. If any Revolving Credit Lender shall not have made its Pro Rata
          Percentage of such L/C Disbursement available to the Administrative Agent as
          provided above, such Lender and the Borrower severally agree to pay interest on
          such amount, for each day from and including the date such amount is required to
          be paid in accordance with this paragraph to but excluding the date such amount
          is paid, to the Administrative Agent for the account of the Issuing Bank at (i)
          in the case of the Borrower, a rate per annum equal to the interest rate
          applicable to Revolving Loans pursuant to Section 2.07(a), and (ii) in the
          case of such Lender, for the first such day, the Federal Funds Effective Rate,
          and for each day thereafter, the Alternate Base Rate. 

SECTION 2.03. Competitive Bid
Procedure. (a) In order to request Competitive Bids, the Borrower shall notify the
Administrative Agent of such request by telephone (i) in the case of a Eurodollar
Competitive Borrowing, not later than 11:00 a.m., New York City time, four Business
Days before the proposed date of such Borrowing and (ii) in the case of a Fixed Rate
Borrowing, not later than 11:00 a.m., New York City time, one Business Day before the
proposed date of such Borrowing. Provided that no two Competitive Bid Requests submitted
on the same day shall be identical, the Borrower may submit up to (but not more than)
three Competitive Bid Requests on the same day, but a Competitive Bid Request shall not be
made within five Business Days after the date of any previous Competitive Bid Request
unless such previous Competitive Bid Request shall have been rejected by the
Administrative Agent, as provided below. No ABR Loan shall be requested in, or made
pursuant to, a Competitive Bid Request. No Term Loans shall be requested in, or made
pursuant to, a Competitive Bid Request. Each such telephonic Competitive Bid Request shall
be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a
written Competitive Bid Request substantially in the form of Exhibit D-1. A Competitive
Bid Request that does not conform substantially to the format of Exhibit D-1 may be
rejected by the Administrative Agent and the Administrative Agent shall notify the
Borrower of such rejection as promptly as practicable. Each Competitive Bid Request shall
refer to this Agreement and specify (i) whether the Borrowing being requested is to
be a Eurodollar Borrowing or a Fixed Rate Borrowing; (ii) the date of such Borrowing
(which shall be a Business Day); (iii) the number and the location of the account to which
funds are to be disbursed (which shall be an account that complies with the requirements
of Section 2.02(c)); (iv) the aggregate principal amount of such Borrowing, which
shall be a minimum of $10,000,000 and an integral multiple of $1,000,000, and in any event
shall not result in the sum of the Aggregate Revolving Credit Exposure and the aggregate
outstanding principal amount of Competitive Loans, after giving effect to such Borrowing,
exceeding the Total Revolving Credit Commitment; and (v) the Interest Period with
respect thereto (which may not end after the Maturity Date). Promptly after its receipt of
a Competitive Bid Request that is not rejected, the Administrative Agent shall invite the
Revolving Credit Lenders in the form set forth as Exhibit D-2 to bid to make
Competitive Loans pursuant to the Competitive Bid Request. 

     (b)    
          Each Revolving Credit Lender may make one or more Competitive Bids to the
          Borrower responsive to a Competitive Bid Request. Each Competitive Bid by a
          Revolving Credit Lender must be received by the Administrative Agent by
          telecopy, (i) in the case of a Eurodollar Competitive Borrowing, not later than
          9:30 a.m., New York City time, three Business Days before the proposed date
          of such Competitive Borrowing, and (ii) in the case of a Fixed Rate
          Borrowing, not later than 9:30 a.m., New York City time, on the proposed
          date of such Competitive Borrowing. Competitive Bids that do not conform
          substantially to the format of Exhibit D-3 may be rejected by the
          Administrative Agent, and the Administrative Agent shall notify the applicable
          Revolving Credit Lender as promptly as practicable. Each Competitive Bid shall
          refer to this Agreement and specify (x) the principal amount (which shall
          be a minimum of $5,000,000 and an integral multiple of $1,000,000 and which may
          equal the entire principal amount of the Competitive Borrowing requested by the
          Borrower) of the Competitive Loan or Loans that the Revolving Credit Lender is
          willing to make, (y) the Competitive Bid Rate or Rates at which the
          Revolving Credit Lender is prepared to make such Loan or Loans and (z) the
          Interest Period applicable to such Loan or Loans and the last day thereof. 

     (c)    
          The Administrative Agent shall promptly notify the Borrower by telecopy of the
          Competitive Bid Rate and the principal amount of each Competitive Loan in
          respect of which a Competitive Bid shall have been made and the identity of the
          Revolving Credit Lender that shall have made each bid. 

     (d)    
          The Borrower may, subject only to the provisions of this paragraph (d),
          accept or reject any Competitive Bid. The Borrower shall notify the
          Administrative Agent by telephone, confirmed by telecopy in the form of a
          Competitive Bid Accept/Reject Letter, whether and to what extent it has decided
          to accept or reject each Competitive Bid, (x) in the case of a Eurodollar
          Competitive Borrowing, not later than 10:30 a.m., New York City time, three
          Business Days before the date of the proposed Competitive Borrowing, and
          (y) in the case of a Fixed Rate Borrowing, not later than 10:30 a.m.,
          New York City time, on the proposed date of the Competitive Borrowing;
          provided, however, that (i) the failure of the Borrower to
          give such notice shall be deemed to be a rejection of each Competitive Bid,
          (ii) the Borrower shall not accept a Competitive Bid made at a particular
          Competitive Bid Rate if the Borrower has decided to reject a Competitive Bid
          made at a lower Competitive Bid Rate, (iii) the aggregate amount of the
          Competitive Bids accepted by the Borrower shall not exceed the principal amount
          specified in the Competitive Bid Request, (iv) if the Borrower shall accept
          a Competitive Bid or Bids made at a particular Competitive Bid Rate but the
          amount of such Competitive Bid or Bids would cause the total amount to be
          accepted by the Borrower to exceed the amount specified in the Competitive Bid
          Request, then the Borrower shall accept a portion of such Competitive Bid or
          Bids in an amount equal to the amount specified in the Competitive Bid Request
          less the amount of all other Competitive Bids so accepted, which acceptance, in
          the case of multiple Competitive Bids at such Competitive Bid Rate, shall be
          made pro rata in accordance with the amount of each such Bid, and
          (v) except pursuant to clause (iv) above, no Competitive Bid shall be
          accepted for a Competitive Loan unless such Competitive Loan is in a minimum
          principal amount of $5,000,000 and an integral multiple of $1,000,000;
          provided further, however, that if a Competitive Loan must be in
          an amount less than $5,000,000 because of the provisions of clause (iv) above,
          such Competitive Loan may be for a minimum of $1,000,000 or any integral
          multiple thereof, and in calculating the pro rata allocation of acceptances of
          portions of multiple Competitive Bids at a particular Competitive Bid Rate
          pursuant to clause (iv) the amounts shall be rounded to integral multiples of
          $1,000,000 in a manner determined by the Borrower. A notice given by the
          Borrower pursuant to this paragraph (d) shall be irrevocable. 

     (e)    
          The Administrative Agent shall promptly notify each bidding Revolving Credit
          Lender by telecopy whether or not its Competitive Bid has been accepted (and, if
          so, in what amount and at what Competitive Bid Rate), and each successful bidder
          will thereupon become bound, upon the terms and subject to the conditions
          hereof, to make the Competitive Loan in respect of which its Competitive Bid has
          been accepted. 

     (f)    
          If the Administrative Agent shall elect to submit a Competitive Bid in its
          capacity as a Revolving Credit Lender, it shall submit such Competitive Bid
          directly to the Borrower at least one quarter of an hour earlier than the time
          by which the other Revolving Credit Lenders are required to submit their
          Competitive Bids to the Administrative Agent pursuant to paragraph (b) above. 

     (g)    
          Within the limits set forth in this Section 2.03 and subject to the terms,
          conditions and limitations set forth herein, the Borrower may borrow, pay and
          reborrow Competitive Loans. 

SECTION 2.04. Borrowing
Procedure. In order to request a Borrowing (other than a Competitive Borrowing or a
deemed Borrowing pursuant to Section 2.02(f), as to which this Section 2.04
shall not apply), 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 a proposed Borrowing, and (b) in
the case of an ABR Borrowing, not later than 11:00 a.m., New York City time, on the
day of a proposed Borrowing. Each Borrowing Request shall be irrevocable, shall be
confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written
Borrowing Request substantially in the form of Exhibit C or such other form as shall be
acceptable to the Administrative Agent and shall specify the following information:
(i) whether the Borrowing then being requested is to be a Term Borrowing or a
Revolving Credit Borrowing, and whether such Borrowing is to be a Eurodollar Borrowing or
an ABR Borrowing; (ii) the date of such Borrowing (which shall be a Business Day);
(iii) the number and location of the account to which funds are to be disbursed
(which shall be an account that complies with the requirements of Section 2.02(c));
(iv) the amount of such Borrowing; and (v) if such Borrowing is to be a
Eurodollar Borrowing, the Interest Period with respect thereto; provided,
however, that, notwithstanding any contrary specification in any Borrowing Request,
each requested Borrowing shall comply with the requirements set forth in
Section 2.02. If no election as to the Type of Borrowing is specified in any such
notice, then the requested Borrowing shall be an ABR Borrowing. If no Interest Period with
respect to any Eurodollar Borrowing is specified in any such notice, then the Borrower
shall be deemed to have selected an Interest Period of one month’s duration. The
Administrative Agent shall promptly advise the applicable Lenders of any notice given
pursuant to this Section 2.04 (and the contents thereof), and of each Lender’s
portion of the requested Borrowing. 

SECTION 2.05. Evidence of
Debt; Repayment of Loans. (a) The Borrower hereby unconditionally promises
to pay to the Administrative Agent for the account of each Lender (i) the principal amount
of each Term Loan of such Lender as provided in Section 2.12, (ii) the then unpaid
principal amount of each Competitive Loan of such Lender on the last day of the Interest
Period applicable to such Loan and (iii) the then unpaid principal amount of each
Revolving Loan of such Lender on the Maturity Date. 

     (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 from time to time, including the amounts of
          principal and interest payable and paid to such Lender from time to time under
          this Agreement. 

     (c)    
          The Administrative Agent shall maintain accounts in which it will record
          (i) the amount of each Loan made hereunder, the Class and Type thereof and,
          if applicable, 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 from the Borrower and each Lender’s
          share thereof. 

     (d)    
          The entries made in the accounts maintained pursuant to paragraphs (b)
          and (c) above shall be prima facie evidence of the existence and
          amounts of the obligations therein recorded; provided, however,
          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 obligations of
          the Borrower to repay the Loans in accordance with their terms. 

     (e)    
          Any Lender may request that Loans made by it hereunder be evidenced by a
          promissory note. In such event, the Borrower shall execute and deliver to such
          Lender a promissory note payable to such Lender and its registered assigns and
          in a form and substance reasonably acceptable to the Administrative Agent and
          the Borrower. Notwithstanding any other provision of this Agreement, in the
          event any Lender shall request and receive such a promissory note, the interests
          represented by such note shall at all times (including after any assignment of
          all or part of such interests pursuant to Section 9.04) be represented by
          one or more promissory notes payable to the payee named therein or its
          registered assigns. 

SECTION 2.06. Fees. (a) The
Borrower agrees to pay to each Revolving Credit Lender, through the Administrative Agent,
on the last Business Day of March, June, September and December in each year, and on the
date on which the Revolving Credit Commitment of such Lender shall expire or be terminated
as provided herein, a facility fee (a “Facility Fee”) equal to the
Applicable Percentage per annum in effect from time to time on the daily amount of the
Revolving Credit Commitment of such Lender (whether used or unused) during the preceding
quarter (or shorter period commencing with the date hereof or ending with the Maturity
Date or the date on which the Revolving Credit Commitment of such Lender shall expire or
be terminated); provided that, if such Lender continues to have any Revolving
Credit Exposure after its Revolving Credit Commitment terminates, then the Facility Fee
shall continue to accrue (and be payable on demand) on the daily amount of such
Lender’s Revolving Credit Exposure from and including the date on which its Revolving
Credit Commitment terminates to and including the date on which such Lender ceases to have
any Revolving Credit Exposure. All Facility Fees shall be computed on the basis of the
actual number of days elapsed (including the first day but excluding the last day) in a
year of 360 days. The Facility Fee due to each Lender shall commence to accrue on the date
of this Agreement and shall cease to accrue on the later of the date on which the
Revolving Credit Commitment of such Lender shall expire or be terminated as provided
herein and such Lender shall have no Revolving Credit Exposure. 

     (b)    
          The Borrower agrees to pay to the Administrative Agent, for its own account, the
          administrative fees separately agreed to in the Fee Letter. 

     (c)    
          The Borrower agrees to pay (i) to each Revolving Credit Lender, through the
          Administrative Agent, on the last Business Day of March, June, September and
          December of each year and on the date on which the Revolving Credit Commitment
          of such Lender shall be terminated as provided herein, a fee (an “L/C
          Participation Fee”) at a rate per annum equal to the Applicable
          Percentage from time to time used to determine the interest rate on Revolving
          Credit Borrowings comprised of Eurodollar Loans pursuant to Section 2.07,
          calculated on such Lender’s Pro Rata Percentage of the daily aggregate L/C
          Exposure (excluding the portion thereof attributable to unreimbursed L/C
          Disbursements) during the preceding quarter (or shorter period commencing with
          the date hereof or ending with the Maturity Date or the date on which the
          Revolving Credit Commitment of such Lender shall expire or be terminated);
          provided that, if such Lender continues to have any L/C Exposure after
          its Revolving Credit Commitment terminates, then the L/C Participation Fee shall
          continue to accrue (and be payable on demand) on such Lender’s Pro Rata
          Percentage of the daily aggregate L/C Exposure from and including the date on
          which its Revolving Credit Commitment terminates to and including the date on
          which such Lender ceases to have any L/C Exposure) and (ii) to the
          Issuing Bank with respect to each Letter of Credit, on the last Business Day of
          March, June, September, and December of each year and on the date on which the
          L/C Commitment of the Issuing Bank shall be terminated as provided herein (or
          later date on which all the Letters of Credit issued by such Issuing Bank shall
          have been terminated or expired), (x) a fronting fee equal to 0.125% per
          annum on the aggregate outstanding face amount of such Letter of Credit and
          (y) the standard issuance and drawing fees specified from time to time by
          the Issuing Bank (the “Issuing Bank Fees”). All L/C
          Participation Fees and Issuing Bank Fees shall be computed on the basis of the
          actual number of days elapsed (including the first day but excluding the last
          day) in a year of 360 days. 

     (d)    
          All Fees shall be paid on the dates due, in immediately available funds, to the
          Administrative Agent for distribution, if and as appropriate, among the Lenders,
          except that the Issuing Bank Fees shall be paid directly to the Issuing Bank.
          Once paid, none of the Fees shall be refundable under any circumstances. 

SECTION 2.07. Interest on
Loans. (a) Subject to the provisions of Section 2.08, the Loans comprising each
ABR Borrowing shall bear interest (computed on the basis of the actual number of days
elapsed (including the first day but excluding the last day) over a year of 365 or
366 days, as the case may be, when the Alternate Base Rate is determined by reference
to the Prime Rate and over a year of 360 days at all other times) at a rate per annum
equal to the Alternate Base Rate in effect from time to time. 

     (b)    
          Subject to the provisions of Section 2.08, the Loans comprising each
          Eurodollar Borrowing shall bear interest (computed on the basis of the actual
          number of days elapsed (including the first day but excluding the last day) over
          a year of 360 days) at a rate per annum equal to (i) in the case of each
          Term Loan and Revolving Loan, the LIBO Rate for the Interest Period in effect
          for such Borrowing plus the Applicable Percentage in effect from time to time,
          and (ii) in the case of each Competitive Loan, the LIBO Rate for the Interest
          Period in effect for such Borrowing plus the Margin offered by the Lender making
          such Loan and accepted by the Borrower pursuant to Section 2.03. 

     (c)    
          Subject to the provisions of Section 2.08, each Fixed Rate Loan shall bear
          interest (computed on the basis of the actual number of days elapsed (including
          the first day but excluding the last day) over a year of 360 days) at a rate per
          annum equal to the fixed rate of interest offered by the Lender making such Loan
          and accepted by the Borrower pursuant to Section 2.03. 

     (d)    
          Interest on each Loan shall be payable on the Interest Payment Dates applicable
          to such Loan except as otherwise provided in this Agreement; provided
          that (i) in the event of any repayment or prepayment of any Loan (other than a
          prepayment of an ABR Loan), accrued interest on the principal amount repaid or
          prepaid shall be payable on the date of such repayment or prepayment and (ii) 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. The applicable Alternate Base Rate or
          LIBO Rate for each Interest Period or day within an Interest Period, as the case
          may be, shall be determined by the Administrative Agent, and such determination
          shall be conclusive absent manifest error. 

SECTION 2.08. Default
Interest. If the Borrower shall default in the payment of the principal of or interest
on any Loan or any other amount becoming due hereunder, by acceleration or otherwise, the
Borrower shall on demand from time to time pay interest, to the extent permitted by law,
on such defaulted amount to but excluding the date of actual payment (after as well as
before judgment) (a) in the case of overdue principal, at the rate otherwise
applicable to such Loan pursuant to Section 2.07 plus 2.00% per annum and (b) in all
other cases, at a rate per annum (computed on the basis of the actual number of days
elapsed (including the first day but excluding the last day) over a year of 365 or 366
days, as the case may be, when determined by reference to the Prime Rate and over a year
of 360 days at all other times) equal to the Alternate Base Rate plus 2.00%. 

SECTION 2.09. Alternate Rate of
Interest.  In the event, and on each occasion, that on the day two Business
Days prior to the commencement of any Interest Period for a Eurodollar Borrowing the
Administrative Agent shall have determined that dollar deposits in the principal amounts
of the Loans comprising such Borrowing are not generally available in the London interbank
market, or that reasonable means do not exist for ascertaining the LIBO Rate, or the
Administrative Agent shall have been informed by the Required Lenders (or, in the case of
a Eurodollar Competitive Loan, any Lender required to make such Loan) that the rates at
which such dollar deposits are being offered will not adequately and fairly reflect the
cost to the Required Lenders (or such Lender) of making or maintaining their or its
Eurodollar Loan during such Interest Period, the Administrative Agent shall, as soon as
practicable thereafter, give written or telecopy notice thereof to the Borrower and the
Lenders. In the event of any such notice, until the Administrative Agent shall have
advised the Borrower and the Lenders that the circumstances giving rise to such notice no
longer exist, (a) any request by the Borrower for a Eurodollar Borrowing pursuant to
Section 2.04 or 2.11 shall be deemed to be a request for an ABR Borrowing and
(b) any request by the Borrower for a Eurodollar Competitive Borrowing pursuant to
Section 2.03 shall be of no force and effect and shall be denied by the
Administrative Agent; provided that if the circumstances giving rise to such notice
do not affect all the Lenders, then the Borrower may make requests for Eurodollar
Competitive Borrowings to Lenders that are not affected thereby. Each determination by the
Administrative Agent under this Section 2.09 shall be conclusive absent manifest
error. 

SECTION 2.10. Termination and
Reduction of Commitments. (a) The Term Loan Commitments shall automatically terminate
upon the making of the Term Loans on the Closing Date. The Revolving Credit Commitments
and the L/C Commitment shall automatically terminate on the Maturity Date. 

     (b)    
          Upon at least three Business Days’ prior irrevocable written or telecopy
          notice (or telephone notice promptly confirmed by written or telecopy notice) to
          the Administrative Agent, the Borrower may at any time in whole permanently
          terminate, or from time to time in part permanently reduce, the Term Loan
          Commitments or the Revolving Credit Commitments; provided,
          however, that (i) each partial reduction of the Term Loan Commitments or
          the Revolving Credit Commitments shall be in an integral multiple of $1,000,000
          and in a minimum amount of $10,000,000 and (ii) the Total Revolving Credit
          Commitment shall not be reduced to an amount that is less than the sum of the
          Aggregate Revolving Credit Exposure and the aggregate outstanding principal
          amount of the Competitive Loans at the time. 

     (c)    
          Each reduction in the Term Loan Commitments or the Revolving Credit Commitments
          hereunder shall be made ratably among the Lenders in accordance with their
          respective applicable Commitments. The Borrower shall pay to the Administrative
          Agent for the account of the applicable Lenders, on the date of each termination
          or reduction, the Facility Fees on the amount of the Revolving Credit
          Commitments so terminated or reduced accrued to but excluding the date of such
          termination or reduction. 

SECTION 2.11. Conversion and
Continuation of Borrowings. The Borrower shall have the right at any time upon prior
irrevocable written or telecopy notice (or telephone notice promptly confirmed by written
or telecopy notice) to the Administrative Agent (a) not later than 11:00 a.m.,
New York City time, on the day of conversion, to convert any Eurodollar Borrowing into an
ABR Borrowing, (b) not later than 11:00 a.m., New York City time, three Business Days
prior to conversion or continuation, to convert any ABR Borrowing into a Eurodollar
Borrowing or to continue any Eurodollar Borrowing as a Eurodollar Borrowing for an
additional Interest Period, and (c) not later than 11:00 a.m., New York City
time, three Business Days prior to conversion, to convert the Interest Period with respect
to any Eurodollar Borrowing to another permissible Interest Period, subject in each case
to the following: 

     	(i) 	
          each conversion or continuation shall be made pro rata among the Lenders in
          accordance with the respective principal amounts of the Loans comprising the
          converted or continued Borrowing; 

          

     	(ii) 	
          if less than all the outstanding principal amount of any Borrowing shall be
          converted or continued, then each resulting Borrowing shall satisfy the
          limitations specified in Sections 2.02(a) and 2.02(b) regarding the
          principal amount and maximum number of Borrowings of the relevant Type; 

          

     	(iii) 	
          each conversion shall be effected by each Lender and the Administrative Agent by
          recording for the account of such Lender the new Loan of such Lender resulting
          from such conversion and reducing the Loan (or portion thereof) of such Lender
          being converted by an equivalent principal amount; accrued interest on any
          Eurodollar Loan (or portion thereof) being converted shall be paid by the
          Borrower at the time of conversion; 

          

     	(iv) 	
          if any Eurodollar Borrowing is converted at a time other than the end of the
          Interest Period applicable thereto, the Borrower shall pay, upon demand, any
          amounts due to the Lenders pursuant to Section 2.16; 

          

     	(v) 	
          any portion of a Borrowing maturing or required to be repaid in less than one
          month may not be converted into or continued as a Eurodollar Borrowing; 

          

     	(vi) 	
          any portion of a Eurodollar Borrowing that cannot be converted into or continued
          as a Eurodollar Borrowing by reason of the immediately preceding clause shall be
          automatically converted at the end of the Interest Period in effect for such
          Borrowing into an ABR Borrowing; 

          

     	(vii) 	
          no Interest Period may be selected for any Eurodollar Term Borrowing that would
          end later than a Repayment Date occurring on or after the first day of such
          Interest Period if, after giving effect to such selection, the aggregate
          outstanding amount of (A) the Eurodollar Term Borrowings with Interest
          Periods ending on or prior to such Repayment Date and (B) the ABR Term
          Borrowings would not be at least equal to the principal amount of Term
          Borrowings to be paid on such Repayment Date; and 

          

     	(viii) 	
          upon notice to the Borrower from the Administrative Agent given at the request
          of the Required Lenders, after the occurrence and during the continuance of a
          Default or Event of Default, no outstanding Loan may be converted into, or
          continued as, a Eurodollar Loan and, unless repaid, each Eurodollar Borrowing
          shall be converted into an ABR Borrowing at the end of the Interest Period
          applicable thereto. 

          

        Each
notice pursuant to this Section 2.11 shall refer to this Agreement and specify
(i) the identity and amount of the Borrowing that the Borrower requests be converted
or continued, (ii) whether such Borrowing is to be converted to or continued as a
Eurodollar Borrowing or an ABR Borrowing, (iii) if such notice requests a
conversion, the date of such conversion (which shall be a Business Day) and (iv) if
such Borrowing is to be converted to or continued as a Eurodollar Borrowing, the Interest
Period with respect thereto. If no Interest Period is specified in any such notice with
respect to any conversion to or continuation as a Eurodollar Borrowing, the Borrower shall
be deemed to have selected an Interest Period of one month’s duration. The
Administrative Agent shall advise the Lenders of any notice given pursuant to this
Section 2.11 and of each Lender’s portion of any converted or continued
Borrowing. If the Borrower shall not have given notice in accordance with this
Section 2.11 to continue any Borrowing into a subsequent Interest Period (and shall
not otherwise have given notice in accordance with this Section 2.11 to convert such
Borrowing), such Borrowing shall, at the end of the Interest Period applicable thereto
(unless repaid pursuant to the terms hereof), automatically be continued into an ABR
Borrowing. The Borrower shall not have the right to continue or convert the Interest
Period with respect to any Competitive Borrowing pursuant to this Section 2.11. 

SECTION 2.12. Repayment of Term
Borrowings. (a) The Borrower shall pay to the Administrative Agent, for the account of
the Lenders, on the dates set forth below, or if any such date is not a Business Day, on
the next preceding Business Day (each such date being called a “Repayment
Date”), a principal amount of the Term Loans (as adjusted from time to
time pursuant to Sections 2.12(b) and 2.13) equal to the amount set forth below for
such date, together in each case with accrued and unpaid interest on the principal amount
to be paid to but excluding the date of such payment: 

Repayment Date                                                                    Amount
---------------------------------------------------- ------------------------------------
---------------------------------------------------- ------------------------------------

March 31, 2008                                                                $6,250,000
---------------------------------------------------- ------------------------------------
---------------------------------------------------- ------------------------------------

June 30, 2008                                                                 $6,250,000
---------------------------------------------------- ------------------------------------
---------------------------------------------------- ------------------------------------

September 30, 2008                                                            $6,250,000
---------------------------------------------------- ------------------------------------
---------------------------------------------------- ------------------------------------

December 31, 2008                                                             $6,250,000
---------------------------------------------------- ------------------------------------
---------------------------------------------------- ------------------------------------

March 31, 2009                                                               $12,500,000
---------------------------------------------------- ------------------------------------
---------------------------------------------------- ------------------------------------

June 30, 2009                                                                $12,500,000
---------------------------------------------------- ------------------------------------
---------------------------------------------------- ------------------------------------

September 30, 2009                                                           $12,500,000
---------------------------------------------------- ------------------------------------
---------------------------------------------------- ------------------------------------

December 31, 2009                                                            $12,500,000
---------------------------------------------------- ------------------------------------
---------------------------------------------------- ------------------------------------

March 31, 2010                                                               $12,500,000
---------------------------------------------------- ------------------------------------
---------------------------------------------------- ------------------------------------

June 30, 2010                                                                $12,500,000
---------------------------------------------------- ------------------------------------
---------------------------------------------------- ------------------------------------

September 30, 2010                                                           $12,500,000
---------------------------------------------------- ------------------------------------
---------------------------------------------------- ------------------------------------

December 31, 2010                                                            $12,500,000
---------------------------------------------------- ------------------------------------
---------------------------------------------------- ------------------------------------

March 31, 2011                                                               $18,750,000
---------------------------------------------------- ------------------------------------
---------------------------------------------------- ------------------------------------

June 30, 2011                                                                $18,750,000
---------------------------------------------------- ------------------------------------
---------------------------------------------------- ------------------------------------

September 30, 2011                                                           $18,750,000
---------------------------------------------------- ------------------------------------
---------------------------------------------------- ------------------------------------

December 31, 2011                                                            $18,750,000
---------------------------------------------------- ------------------------------------
---------------------------------------------------- ------------------------------------

March 31, 2012                                                               $18,750,000
---------------------------------------------------- ------------------------------------
---------------------------------------------------- ------------------------------------

June 30, 2012                                                                $18,750,000
---------------------------------------------------- ------------------------------------
---------------------------------------------------- ------------------------------------

September 30, 2012                                                           $18,750,000
---------------------------------------------------- ------------------------------------
---------------------------------------------------- ------------------------------------

Maturity Date                                                               $243,750,000
----------------------------------------------------

     (b)    
          In the event and on each occasion that the Term Loan Commitments shall be
          reduced or shall expire or terminate other than as a result of the making of a
          Term Loan, the installments payable on each Repayment Date shall be reduced pro
          rata by an aggregate amount equal to the amount of such reduction, expiration or
          termination. 

     (c)    
          To the extent not previously paid, all Term Loans shall be due and payable on
          the Maturity Date together with accrued and unpaid interest on the principal
          amount to be paid to but excluding the date of payment. 

     (d)    
          All repayments pursuant to this Section 2.12 shall be subject to
          Section 2.16, but shall otherwise be without premium or penalty. 

SECTION 2.13. Optional
Prepayment. (a) The Borrower shall have the right at any time and from time to time
to prepay any Borrowing (other than a Competitive Borrowing), in whole or in part, upon at
least three Business Days’ prior written or telecopy notice (or telephone notice
promptly confirmed by written or telecopy notice) in the case of Eurodollar Loans, or
written or telecopy notice (or telephone notice promptly confirmed by written or telecopy
notice) on the day of prepayment in the case of ABR Loans, to the Administrative Agent
before 11:00 a.m., New York City time; provided, however, that each partial
prepayment shall be in an amount that is an integral multiple of $1,000,000 and not less
than $10,000,000. The Borrower shall not have the right to prepay any Competitive
Borrowing. 

     (b)    
          Optional prepayments of Term Loans shall be applied pro rata against the
          remaining scheduled installments of principal due in respect of the Term Loans
          under Section 2.12. 

     (c)    
          In the event of any termination of all the Revolving Credit Commitments, the
          Borrower shall repay or prepay all its outstanding Revolving Credit Borrowings
          on the date of such termination. If as a result of any partial reduction of the
          Revolving Credit Commitments the sum of the Aggregate Revolving Credit Exposure
          and the aggregate outstanding principal amount of the Competitive Loans at the
          time would exceed the Total Revolving Credit Commitment after giving effect
          thereto, then the Borrower shall, on the date of such reduction, repay or prepay
          Revolving Credit Borrowings in an amount sufficient to eliminate such excess. 

     (d)    
          Each notice of prepayment shall specify the prepayment date and the principal
          amount of each Borrowing (or portion thereof) to be prepaid, shall be
          irrevocable and shall commit the Borrower to prepay such Borrowing by the amount
          stated therein on the date stated therein. All prepayments under this
          Section 2.13 shall be subject to Section 2.16 but otherwise without
          premium or penalty. All prepayments under this Section 2.13 (other than
          prepayment of an ABR Revolving Loan that does not occur in connection with, or
          as a result of, the reduction or termination of the Revolving Credit
          Commitments) shall be accompanied by accrued and unpaid interest on the
          principal amount to be prepaid to but excluding the date of payment. 

SECTION 2.14. Reserve
Requirements; Change in Circumstances. (a) Notwithstanding any other provision of this
Agreement, if any Change in Law shall 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 or the Issuing Bank or shall impose on such Lender or
the Issuing Bank or the London interbank market any other condition affecting this
Agreement or Eurodollar Loans or Fixed Rate Loans made by such Lender or any Letter of
Credit or participation therein, and the result of any of the foregoing shall be to
increase the cost to such Lender of making or maintaining any Eurodollar Loan or Fixed
Rate Loan or increase the cost to any Lender or the Issuing Bank of issuing or maintaining
any Letter of Credit or purchasing or maintaining a participation therein or to reduce the
amount of any sum received or receivable by such Lender or the Issuing Bank hereunder
(whether of principal, interest or otherwise) by an amount deemed by such Lender or the
Issuing Bank to be material, then the Borrower will pay to such Lender or the Issuing
Bank, as the case may be, upon demand such additional amount or amounts as will compensate
such Lender or the Issuing Bank, as the case may be, for such additional costs incurred or
reduction suffered. 

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

     (c)    
          A certificate of a Lender or the Issuing Bank setting forth the amount or
          amounts necessary to compensate such Lender or the Issuing Bank or its holding
          company, as applicable, as specified in paragraph (a) or (b) above shall be
          delivered to the Borrower and shall be conclusive absent manifest error. The
          Borrower shall pay such Lender or the Issuing Bank the amount shown as due on
          any such certificate delivered by it within 15 days after its receipt of
          the same. 

     (d)    
          Failure or delay on the part of any Lender or the Issuing Bank to demand
          compensation for any increased costs or reduction in amounts received or
          receivable or reduction in return on capital shall not constitute a waiver of
          such Lender’s or the Issuing Bank’s right to demand such compensation;
          provided that the Borrower shall not be under any obligation to
          compensate any Lender or the Issuing Bank under paragraph (a) or (b) above with
          respect to increased costs or reductions with respect to any period prior to the
          date that is 120 days prior to such request if such Lender or the Issuing Bank
          knew or could reasonably have been expected to know of the circumstances giving
          rise to such increased costs or reductions and of the fact that such
          circumstances could reasonably be expected to result in a claim for increased
          compensation by reason of such increased costs or reductions; provided
          further that the foregoing limitation shall not apply to any increased costs
          or reductions arising out of the retroactive application of any Change in Law
          within such 120-day period. The protection of this Section shall be
          available to each Lender and the Issuing Bank regardless of any possible
          contention of the invalidity or inapplicability of the Change in Law that shall
          have occurred or been imposed. Notwithstanding any other provision of this
          Section, no Lender shall be entitled to demand compensation hereunder in respect
          of any Competitive Loan if it shall have been aware of the event or circumstance
          giving rise to such demand at the time it submitted the Competitive Bid pursuant
          to which such Loan was made. 

SECTION 2.15. Change in
Legality. (a) Notwithstanding any other provision of this Agreement, if any
Change in Law shall make it unlawful for any Lender to make or maintain any Eurodollar
Loan or to give effect to its obligations as contemplated hereby with respect to any
Eurodollar Loan, then, by written notice to the Borrower and to the Administrative Agent: 

     	(i) 	
          such Lender may declare that Eurodollar Loans will not thereafter (for the
          duration of such unlawfulness) be made by such Lender hereunder (or be continued
          for additional Interest Periods and ABR Loans will not thereafter (for such
          duration) be converted into Eurodollar Loans), whereupon such Lender shall not
          submit a Competitive Bid in response to a request for a Eurodollar Competitive
          Loan and any request for a Eurodollar Borrowing (or to convert an ABR Borrowing
          to a Eurodollar Borrowing or to continue a Eurodollar Borrowing for an
          additional Interest Period) shall, as to such Lender only, be deemed a request
          for an ABR Loan (or a request to continue an ABR Loan as such for an additional
          Interest Period or to convert a Eurodollar Loan into an ABR Loan, as the case
          may be), unless such declaration shall be subsequently withdrawn; and 

          

     	(ii) 	
          such Lender may require that all outstanding Eurodollar Loans made by it be
          converted to ABR Loans, in which event all such Eurodollar Loans shall be
          automatically converted to ABR Loans as of the effective date of such notice as
          provided in paragraph (b) below. 

          

In the event any Lender shall
exercise its rights under (i) or (ii) above, all payments and prepayments of
principal that would otherwise have been applied to repay the Eurodollar Loans that would
have been made by such Lender or the converted Eurodollar Loans of such Lender shall
instead be applied to repay the ABR Loans made by such Lender in lieu of, or resulting
from the conversion of, such Eurodollar Loans. 

     (b)    
          For purposes of this Section 2.15, a notice to the Borrower by any Lender
          shall be effective as to each Eurodollar Loan made by such Lender, if lawful, on
          the last day of the Interest Period then applicable to such Eurodollar Loan; in
          all other cases such notice shall be effective on the date of receipt by the
          Borrower. 

SECTION 2.16. Break Funding.
The Borrower shall compensate each Lender for any loss or expense that such Lender may
sustain or incur as a consequence of (a) such Lender receiving or being deemed to receive
any amount on account of the principal of any Fixed Rate Loan or Eurodollar Loan prior to
the end of the Interest Period in effect therefor, (b) the conversion of any Eurodollar
Loan to an ABR Loan, or the conversion of the Interest Period with respect to any
Eurodollar Loan, in each case other than on the last day of the Interest Period in effect
therefor or (c) the failure of the Borrower to borrow, convert, continue or prepay any
Fixed Rate Loan or Eurodollar Loan made or to be made by such Lender (including any
Eurodollar Loan to be made pursuant to a conversion or continuation under
Section 2.11) after notice of such borrowing, conversion, continuation or prepayment
shall have been given by the Borrower hereunder (any of the events referred to in this
sentence being called a “Breakage Event”). In the case of any Breakage
Event, such loss shall include an amount equal to the excess, as reasonably determined by
such Lender, of (i) its cost of obtaining funds for the Fixed Rate Loan or Eurodollar Loan
that is the subject of such Breakage Event for the period from the date of such Breakage
Event to the last day of the Interest Period in effect (or that would have been in effect)
for such Loan over (ii) the amount of interest likely to be realized by such Lender in
redeploying the funds released or not utilized by reason of such Breakage Event for such
period. A certificate of any Lender setting forth any amount or amounts which such Lender
is entitled to receive pursuant to this Section 2.16 shall be delivered to the
Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender
the amount due within 15 days of the receipt of any such certificate. 

SECTION 2.17. Pro Rata
Treatment. Except as provided below in this Section 2.17 with respect to
Competitive Borrowings and as required under Section 2.15, each Borrowing, each
payment or prepayment of principal of any Borrowing, each payment of interest on the
Loans, each payment of the Facility Fees and the L/C Participation Fees, each reduction of
the Term Loan Commitments or the Revolving Credit Commitments and each conversion of any
Borrowing to or continuation of any Borrowing as a Borrowing of any Type shall be
allocated pro rata among the Lenders in accordance with their respective applicable
Commitments (or, if such Commitments shall have expired or been terminated, in accordance
with the respective principal amounts of their outstanding Loans). Each payment of
principal of and interest on any Competitive Borrowing shall be allocated pro rata among
the Lenders participating in such Borrowing in accordance with the respective principal
amounts of their outstanding Competitive Loans comprising such Borrowing. For purposes of
determining the available Revolving Credit Commitments of the Lenders at any time, each
outstanding Competitive Borrowing shall be deemed to have utilized the Revolving Credit
Commitments of the Lenders (including those Lenders which shall not have made Loans as
part of such Competitive Borrowing) pro rata in accordance with such respective Revolving
Credit Commitments. Each Lender agrees that in computing such Lender’s portion of any
Borrowing to be made hereunder, the Administrative Agent may, in its discretion, round
each Lender’s percentage of such Borrowing to the next higher or lower whole dollar
amount. 

SECTION 2.18. Sharing of
Setoffs. Each Lender agrees that if it shall, through the exercise of a right of
banker’s lien, setoff or counterclaim against the Borrower, or pursuant to a secured
claim under Section 506 of Title 11 of the United States Code or other security
or interest arising from, or in lieu of, such secured claim, received by such Lender under
any applicable bankruptcy, insolvency or other similar law or otherwise, or by any other
means, obtain payment (voluntary or involuntary) in respect of any Loan or Loans or L/C
Disbursement as a result of which the unpaid principal portion of its Loans and
participations in L/C Disbursements shall be proportionately less than the unpaid
principal portion of the Loans and participations in L/C Disbursements of any other
Lender, it shall be deemed simultaneously to have purchased from such other Lender at face
value, and shall promptly pay to such other Lender the purchase price for, a participation
in the Loans and L/C Exposure of such other Lender, so that the aggregate unpaid principal
amount of the Loans and L/C Exposure and participations in Loans and L/C Exposure held by
each Lender shall be in the same proportion to the aggregate unpaid principal amount of
all Loans and L/C Exposure then outstanding as the principal amount of its Loans and L/C
Exposure prior to such exercise of banker’s lien, setoff or counterclaim or other
event was to the principal amount of all Loans and L/C Exposure outstanding prior to such
exercise of banker’s lien, setoff or counterclaim or other event; provided,
however, that if any such purchase or purchases or adjustments shall be made
pursuant to this Section 2.18 and the payment giving rise thereto shall thereafter be
recovered, such purchase or purchases or adjustments shall be rescinded to the extent of
such recovery and the purchase price or prices or adjustment restored without interest.
The Borrower expressly consents to the foregoing arrangements and agrees that any Lender
holding a participation in a Loan or L/C Disbursement deemed to have been so purchased may
exercise any and all rights of banker’s lien, setoff or counterclaim with respect to
any and all moneys owing by the Borrower to such Lender by reason thereof as fully as if
such Lender had made a Loan directly to the Borrower in the amount of such participation. 

SECTION 2.19. Payments. (a)
The Borrower shall make each payment (including principal of or interest on any Borrowing
or any L/C Disbursement or any Fees or other amounts) hereunder not later than
12:00 (noon), New York City time, on the date when due in immediately available
dollars, without setoff, defense or counterclaim. Each such payment (other than Issuing
Bank Fees, which shall be paid directly to the Issuing Bank), shall be made to the
Administrative Agent at its offices at Eleven Madison Avenue, New York, NY 10010 or as
otherwise instructed by the Administrative Agent. 

     (b)    
          Except as otherwise expressly provided herein, whenever any payment (including
          principal of or interest on any Borrowing or any Fees or other amounts)
          hereunder shall become due, or otherwise would occur, on a day that is not a
          Business Day, such payment may be made on the next succeeding Business Day, and
          such extension of time shall in such case be included in the computation of
          interest or Fees, if applicable. 

     (c)    
          Unless the Administrative Agent shall have received notice from the Borrower
          prior to the date on which any payment is due to the Administrative Agent for
          the account of the Lenders or the 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 Issuing Bank, as the case may
          be, the amount due. In such event, if the Borrower does not in fact make such
          payment, then each of the Lenders or the 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, and to pay 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 a rate determined by the
          Administrative Agent to represent its cost of overnight or short-term funds
          (which determination shall be conclusive absent manifest error). 

SECTION 2.20. Taxes. (a) Any
and all payments by the Borrower hereunder 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 that after making all required
deductions (including deductions applicable to additional sums payable under this Section
2.20) the Administrative Agent or such Lender (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 not paid pursuant to Section
          2.20(a)(iii) to the relevant Governmental Authority in accordance with
          applicable law. As of the Closing Date, each Foreign Lender intends to make
          Loans hereunder out of an office located in the United States of America or out
          of an office so that such Loans would not be subject to Other Taxes. 

     (c)    
          The Borrower shall indemnify the Administrative Agent and each Lender, within 15
          days after written demand therefor, for the full amount of any Indemnified Taxes
          or Other Taxes paid by the Administrative Agent or such Lender, as the case may
          be, on or with respect to any payment by or on account of any obligation of the
          Borrower hereunder (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; provided,
          however, that the Borrower shall not be obligated to make a payment pursuant
          to this Section 2.20 in respect of penalties, interest and other liabilities
          attributable to any Indemnified Taxes or Other Taxes, if (i) such penalties,
          interest and other liabilities are attributable to the failure of the
          Administrative Agent or such Lender, as the case may be, to pay amounts paid to
          the Administrative Agent or such Lender by the Borrower (for Indemnified Taxes
          or Other Taxes) to the appropriate taxing authority in a timely manner after
          receipt of such payment from the Borrower or (ii) such penalties, interest and
          other liabilities are attributable to the gross negligence or wilful misconduct
          of the Administrative Agent or such Lender, as the case may be. After the
          Administrative Agent or a Lender learns of the imposition of Indemnified Taxes
          or Other Taxes, such person will act in good faith to promptly notify the
          Borrower of its obligations hereunder. A certificate as to the amount of such
          payment or liability delivered to the Borrower by a Lender, or by the
          Administrative Agent on its behalf or on behalf of a Lender, 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 Lender that is entitled to an exemption from or reduction of withholding tax
          under 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 and reasonably
          requested by the Borrower as will permit such payments to be made without
          withholding or at a reduced rate. Each Foreign Lender, before it signs and
          delivers this Agreement if listed on the signature pages hereof and before it
          becomes a Lender in the case of each other Foreign Lender, and from time to time
          thereafter, before the date any such form expires or becomes obsolete or
          invalid, shall provide the Borrower and the Administrative Agent with Internal
          Revenue Service form W-8BEN or W-8ECI (or other appropriate or successor form
          prescribed by the Internal Revenue Service) in duplicate, certifying that such
          Foreign Lender is entitled to benefits under an income tax treaty to which the
          United States of America is a party which exempts the Foreign Lender from U.S.
          withholding tax on payments of interest for the account of such Foreign Lender
          or certifying that the income receivable pursuant to this Agreement is
          effectively connected with the conduct by such Foreign Lender of a trade or
          business in the United States of America and exempt from United States
          withholding tax. 

     (f)    
          If the Administrative Agent or a Lender determines that it has received a refund
          or credit in respect of and specifically associated with any Indemnified 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, it shall promptly
          notify the Borrower of such refund or credit and shall within 15 days from the
          date of receipt of such refund or benefit of such credit pay over the amount of
          such refund or benefit of such credit (including any interest paid or credited
          by the relevant taxing authority or Governmental Authority with respect to such
          refund or credit) to the Borrower (but only to the extent of indemnity payments
          made, or additional amounts paid, by the Borrower with respect to the
          Indemnified Taxes or Other Taxes giving rise to such refund of credit), net of
          all out-of-pocket expenses of such person. If the Administrative Agent or a
          Lender shall become aware that it is entitled to receive a refund or credit in
          respect of Indemnified 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, it shall promptly notify the Borrower of the availability of such
          refund or credit and shall, within 15 days after receipt of a request for such
          by the Borrower (whether as a result of notification that it has made of such to
          the Borrower or otherwise), make a claim to such taxing authority or
          Governmental Authority for such refund or credit and contest such Indemnified
          Taxes, Other Taxes or liabilities if (i) such Lender or the Administrative Agent
          determines, in its sole discretion, that it would not be materially
          disadvantaged or prejudiced as a result of such contest (it being understood
          that the mere existence of fees, charges, costs or expenses that the Borrower
          has offered to and agreed to pay on behalf of a Lender or the Administrative
          Agent shall not be deemed to be materially disadvantageous to such person) and
          (ii) the Borrower furnishes, upon request of the Lender or the Administrative
          Agent, an opinion of reputable tax counsel (such opinion and such counsel to be
          acceptable to such Lender or the Administrative Agent) to the effect that such
          Indemnified Taxes or Other Taxes were wrongfully or illegally imposed. 

SECTION 2.21. Assignment of
Commitments Under Certain Circumstances; Duty to Mitigate. (a) In the event
(i) any Lender or the Issuing Bank delivers a certificate requesting compensation
pursuant to Section 2.14, (ii) any Lender or the Issuing Bank delivers a notice
described in Section 2.15, (iii) the Borrower is required to pay any additional
amount to any Lender or the Issuing Bank or any Governmental Authority on account of any
Lender or the Issuing Bank pursuant to Section 2.20 or (iv) any Lender refuses to
consent to any amendment, waiver or other modification of this Agreement requested by the
Borrower that requires the consent of a greater percentage of the Lenders than the
Required Lenders and such amendment, waiver or other modification is consented to by the
Required Lenders, the Borrower may, at its sole expense and effort (including with respect
to the processing and recordation fee referred to in Section 9.04(b)), upon notice to
such Lender or the Issuing Bank and the Administrative Agent, require such Lender or the
Issuing Bank to transfer and assign, without recourse (in accordance with and subject to
the restrictions contained in Section 9.04), all of its interests, rights and
obligations under this Agreement (or, in the case of clause (iv) above, all of its
interests, rights and obligations with respect to the Class of Loans or Commitments that
is the subject of the related consent, amendment, waiver or other modification) to an
Eligible Assignee that shall assume such assigned obligations and, with respect to clause
(iv) above, shall consent to such requested amendment, waiver or other modification of
this Agreement (which Eligible Assignee may be another Lender, if a Lender accepts such
assignment); provided that (x) such assignment shall not conflict with any law,
rule or regulation or order of any court or other Governmental Authority having
jurisdiction, (y) the Borrower shall have received the prior written consent of the
Administrative Agent (and, if a Revolving Credit Commitment is being assigned, of the
Issuing Bank), which consent shall not unreasonably be withheld, and (z) the Borrower or
such Eligible Assignee shall have paid to the affected Lender or the Issuing Bank in
immediately available funds an amount equal to the sum of the principal of and interest
accrued to the date of such payment on the outstanding Loans or L/C Disbursements of such
Lender or the Issuing Bank, respectively, plus all Fees and other amounts accrued for the
account of such Lender or the Issuing Bank hereunder (including any amounts under
Section 2.14 and Section 2.16); provided further that, if prior to
any such transfer and assignment the circumstances or event that resulted in such
Lender’s or the Issuing Bank’s claim for compensation under Section 2.14 or
notice under Section 2.15 or the amounts paid pursuant to Section 2.20, as the
case may be, cease to cause such Lender or the Issuing Bank to suffer increased costs or
reductions in amounts received or receivable or reduction in return on capital, or cease
to have the consequences specified in Section 2.15, or cease to result in amounts
being payable under Section 2.20, as the case may be (including as a result of any
action taken by such Lender or the Issuing Bank pursuant to paragraph (b) below), or
if such Lender or the Issuing Bank shall waive its right to claim further compensation
under Section 2.14 in respect of such circumstances or event or shall withdraw its
notice under Section 2.15 or shall waive its right to further payments under
Section 2.20 in respect of such circumstances or event or shall consent to the
proposed amendment, waiver, consent or other modification, as the case may be, then such
Lender or the Issuing Bank shall not thereafter be required to make any such transfer and
assignment hereunder. Each Lender hereby grants to the Administrative Agent an irrevocable
power of attorney (which power is coupled with an interest) to execute and deliver, on
behalf of such Lender as assignor, any Assignment and Acceptance necessary to effectuate
any assignment of such Lender’s interests hereunder in the circumstances contemplated
by this Section 2.21(a). 

     (b)    
          If (i) any Lender or the Issuing Bank shall request compensation under
          Section 2.14, (ii) any Lender or the Issuing Bank delivers a notice
          described in Section 2.15 or (iii) the Borrower is required to pay any
          additional amount or indemnity payment to any Lender or the Issuing Bank or any
          Governmental Authority on account of any Lender or the Issuing Bank, pursuant to
          Section 2.20, then such Lender or the Issuing Bank shall use reasonable
          efforts (which shall not require such Lender or the Issuing Bank to incur an
          unreimbursed loss or unreimbursed cost or expense or otherwise take any action
          inconsistent with its internal policies or legal or regulatory restrictions or
          suffer any disadvantage or burden deemed by it to be significant) (x) to file
          any certificate or document reasonably requested in writing by the Borrower or
          (y) to assign its rights and delegate and transfer its obligations hereunder to
          another of its offices, branches or affiliates, if such filing or assignment
          would reduce its claims for compensation under Section 2.14 or enable it to
          withdraw its notice pursuant to Section 2.15 or would reduce amounts
          payable pursuant to Section 2.20, as the case may be, in the future. The
          Borrower hereby agrees to pay all reasonable costs and expenses incurred by any
          Lender or the Issuing Bank in connection with any such filing or assignment,
          delegation and transfer. 

SECTION 2.22. Letters of
Credit. (a) General. The Borrower may request the issuance of a Letter of
Credit for its own account or for the account of any of its Subsidiaries (in which case
the Borrower and such Subsidiary shall be co-applicants with respect to such Letter of
Credit), in a form reasonably acceptable to the Administrative Agent and the Issuing Bank,
at any time and from time to time while the Revolving Credit Commitments remain in effect.
This Section 2.22 shall not be construed to impose an obligation upon the Issuing Bank to
issue any Letter of Credit that is inconsistent with the terms and conditions of this
Agreement. 

     	(b) 	
          Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. In
          order to request the issuance of a Letter of Credit (or to amend, renew or
          extend an existing 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 Issuing Bank) to the 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, the date
          on which such Letter of Credit is to expire (which shall comply with
          paragraph (c) below), 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 such 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 L/C Exposure shall not exceed the L/C Commitment and
          (ii) the sum of the Aggregate Revolving Credit Exposure and the aggregate
          principal amount of outstanding Competitive Borrowings shall not exceed the
          Total Revolving Credit Commitment. 

          

     	(c) 	
          Expiration Date. Each Letter of Credit shall expire at the close of
          business on the earlier of the date one year after the date of the issuance of
          such Letter of Credit and the date that is five Business Days prior to the
          Maturity Date, unless such Letter of Credit expires by its terms on an earlier
          date; provided, however, that a Letter of Credit may, upon the
          request of the Borrower, include a provision whereby such Letter of Credit shall
          be renewed automatically for additional consecutive periods of 12 months or less
          (but not beyond the date that is five Business Days prior to the Maturity Date)
          unless the Issuing Bank notifies the beneficiary thereof at least 30 days (or
          such longer period as may be specified in such Letter of Credit) prior to the
          then-applicable expiration date that such Letter of Credit will not be renewed. 

          

     	(d) 	
          Participations. By the issuance of a Letter of Credit and without any
          further action on the part of the Issuing Bank or the Lenders, the Issuing Bank
          hereby grants to each Revolving Credit Lender, and each such Lender hereby
          acquires from the Issuing Bank, a participation in such Letter of Credit equal
          to such Lender’s Pro Rata Percentage of the aggregate amount available to
          be drawn under such Letter of Credit, effective upon the issuance of such Letter
          of Credit (or, in the case of the Existing Letters of Credit, effective upon the
          Closing Date). In consideration and in furtherance of the foregoing, each
          Revolving Credit Lender hereby absolutely and unconditionally agrees to pay to
          the Administrative Agent, for the account of the Issuing Bank, such
          Lender’s Pro Rata Percentage of each L/C Disbursement made by the Issuing
          Bank and not reimbursed by the Borrower forthwith on the date due as provided in
          Section 2.02(f). Each Revolving Credit 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 the occurrence and continuance of a
          Default or an Event of Default, 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 L/C Disbursement in
          respect of a Letter of Credit, the Borrower shall pay to the Administrative
          Agent an amount equal to such L/C Disbursement not later than 5:00 p.m.,
          New York City time, on the day on which the Borrower shall have received notice
          from the Issuing Bank that payment of such draft will be made, or, if the
          Borrower shall have received such notice later than 11:00 a.m., New York City
          time, on any Business Day, not later than 12:00 noon, New York City time, on the
          immediately following Business Day. 

          

     	(f) 	
          Obligations Absolute. The Borrower’s obligations to reimburse L/C
          Disbursements as provided in paragraph (e) above 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 therein; 

          

     	(ii) 	
          any amendment or waiver of this Agreement; 

          

     	(iii) 	
          the existence of any claim, setoff, defense or other right that the Borrower,
          any other party guaranteeing, or otherwise obligated with, the Borrower, any
          Subsidiary or other Affiliate thereof or any other person may at any time have
          against the beneficiary under any Letter of Credit, the Issuing Bank, the
          Administrative Agent or any Lender or any other person, whether in connection
          with this Agreement or any other related or unrelated agreement or transaction; 

          

     	(iv) 	
          any draft or other document presented under a Letter of Credit proving to be
          forged, fraudulent, invalid or insufficient in any respect or any statement
          therein being untrue or inaccurate in any respect; 

          

     	(v) 	
          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; and 

          

     	(vi) 	
          any other act or omission to act or delay of any kind of the Issuing Bank, the
          Lenders, the Administrative Agent or any other person or any other event or
          circumstance whatsoever, whether or not similar to any of the foregoing, that
          might, but for the provisions of this Section 2.22, constitute a legal or
          equitable discharge of the Borrower’s obligations hereunder. 

          

        Without
limiting the generality of the foregoing, it is expressly understood and agreed that the
absolute and unconditional obligation of the Borrower hereunder to reimburse L/C
Disbursements will not be excused by the gross negligence or wilful misconduct of the
Issuing Bank. However, 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 gross negligence or wilful misconduct in determining whether drafts
and other documents presented under a Letter of Credit comply with the terms thereof; it
is understood that the Issuing Bank may accept documents that appear on their face to be
in order, without responsibility for further investigation, regardless of any notice or
information to the contrary and, in making any payment under any Letter of Credit
(i) the Issuing Bank’s exclusive reliance on the documents presented to it under
such Letter of Credit as to any and all matters set forth therein, including reliance on
the amount of any draft presented under such Letter of Credit, whether or not the amount
due to the beneficiary thereunder equals the amount of such draft and whether or not any
document presented pursuant to such Letter of Credit proves to be insufficient in any
respect, if such document on its face appears to be in order, and whether or not any other
statement or any other document presented pursuant to such Letter of Credit proves to be
forged or invalid or any statement therein proves to be inaccurate or untrue in any
respect whatsoever and (ii) any noncompliance in any immaterial respect of the
documents presented under such Letter of Credit with the terms thereof shall, in each
case, be deemed not to constitute wilful misconduct or gross negligence of the Issuing
Bank. 

     (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 as promptly as possible
          give telephonic notification, confirmed by telecopy, to the Administrative Agent
          and the Borrower of such demand for payment and whether the Issuing Bank has
          made or will make an L/C 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 Revolving Credit Lenders
          with respect to any such L/C Disbursement. The Administrative Agent shall
          promptly give each Revolving Credit Lender notice thereof. 

     (h)    
          Interim Interest. If the Issuing Bank shall make any L/C Disbursement in
          respect of a Letter of Credit, then, unless the Borrower shall reimburse such
          L/C Disbursement in full on such date, the unpaid amount thereof shall bear
          interest for the account of the Issuing Bank, for each day from and including
          the date of such L/C Disbursement, to but excluding the earlier of the date of
          payment by the Borrower or the date on which interest shall commence to accrue
          thereon as provided in Section 2.02(f), at the rate per annum that would
          apply to such amount if such amount were an ABR Revolving Loan. 

     (i)    
          Resignation or Removal of the Issuing Bank. The Issuing Bank may resign
          at any time by giving 30 days’ prior written notice to the Administrative
          Agent, the Lenders and the Borrower, and may be removed at any time by the
          Borrower by notice to the Issuing Bank, the Administrative Agent and the
          Lenders. Subject to the next succeeding paragraph, upon the acceptance of any
          appointment as the Issuing Bank hereunder by a Lender that shall agree to serve
          as successor Issuing Bank, such successor shall succeed to and become vested
          with all the interests, rights and obligations of the retiring Issuing Bank and
          the retiring Issuing Bank shall be discharged from its obligations to issue
          additional Letters of Credit hereunder. At the time such removal or resignation
          shall become effective, the Borrower shall pay all accrued and unpaid fees
          pursuant to Section 2.06(c)(ii). The acceptance of any appointment as the
          Issuing Bank hereunder by a successor Lender shall be evidenced by an agreement
          entered into by such successor, in a form satisfactory to the Borrower and the
          Administrative Agent, and, from and after the effective date of such agreement,
          (i) such successor Lender shall have all the rights and obligations of the
          previous Issuing Bank under this Agreement 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 resignation or removal of the Issuing
          Bank hereunder, the retiring 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
          resignation or removal, but shall not be required to issue additional Letters of
          Credit. 

     (j)    
          Cash Collateralization. If any Event of Default shall occur and be
          continuing, the Borrower shall, on the Business Day it receives notice from the
          Administrative Agent or the Required Lenders (or, if the maturity of the Loans
          has been accelerated, Revolving Credit Lenders holding participations in
          outstanding Letters of Credit representing greater than 50% of the aggregate
          undrawn amount of all outstanding Letters of Credit) thereof and of the amount
          to be deposited, deposit in an account with the Administrative Agent, for the
          benefit of the Revolving Credit Lenders, an amount in cash equal to the L/C
          Exposure as of such date, provided, however that the obligation to
          deposit such cash shall become effective immediately, and such deposit shall
          become immediately due and payable, without demand or other notice of any kind,
          upon the occurrence of any Event of Default with respect to the Borrower
          described in clause (g) or (h) of Article VII. 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 in Permitted Investments, which investments shall be made at
          the option and sole discretion of the Administrative Agent, such deposits shall
          not bear interest. Interest or profits, if any, on such investments shall
          accumulate in such account. Moneys in such account shall (i) automatically be
          applied by the Administrative Agent to reimburse the Issuing Bank for L/C
          Disbursements for which it has not been reimbursed, (ii) be held for the
          satisfaction of the reimbursement obligations of the Borrower for the L/C
          Exposure at such time and (iii) if the maturity of the Loans has been
          accelerated (but subject to the consent of Revolving Credit Lenders holding
          participations in outstanding Letters of Credit representing greater than 50% of
          the aggregate undrawn amount of all outstanding Letters of Credit), be applied
          to satisfy other obligations of the Borrower under this Agreement. If the
          Borrower is required to provide an amount of cash collateral hereunder as a
          result of the occurrence of an Event of Default, such amount (to the extent not
          applied as aforesaid) shall be returned to the Borrower within three Business
          Days after all Events of Default have been cured or waived. 

     (k)    
          Additional Issuing Banks. The Borrower may, at any time and from time to
          time with the consent of the Administrative Agent (which consent shall not be
          unreasonably withheld or delayed) and such Lender, designate one or more
          additional Lenders to act as an issuing bank under the terms of this Agreement.
          Any Lender designated as an issuing bank pursuant to this paragraph (k) shall be
          deemed to be an “Issuing Bank” (in addition to being a Lender) in
          respect of Letters of Credit issued or to be issued by such Lender, and, with
          respect to such Letters of Credit, such term shall thereafter apply to the other
          Issuing Bank and such Lender. 

SECTION 2.23. Incremental
Commitments. (a) The Borrower may, by written notice to the Administrative Agent from
time to time, request that the Total Revolving Credit Commitment (and, in connection
therewith, the L/C Commitment) be increased by an amount not to exceed the Incremental
Commitment Amount at such time. Such notice shall set forth the amount of the requested
increase in the Total Revolving Credit Commitment (which shall be in minimum increments of
$5,000,000 and a minimum amount of $10,000,000 or equal to the remaining Incremental
Commitment Amount) and, if applicable, the L/C Commitment, and the date on which such
increase is requested to become effective (which shall be not less than 10 Business Days
nor more than 60 days after the date of such notice and which, in any event, must be on or
prior to the Maturity Date), and shall offer each Revolving Credit Lender the opportunity
to increase its Revolving Credit Commitment by its Pro Rata Percentage of the proposed
increased amount. Each Revolving Credit Lender shall, by notice to the Borrower and the
Administrative Agent given not more than 10 days after the date of the Administrative
Agent’s notice, either agree to increase its Revolving Credit Commitment by all or a
portion of the offered amount (each Lender so agreeing being an “Increasing
Lender”) or decline to increase its Revolving Credit 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 Credit Commitment) (each Lender so declining or being
deemed to have declined being a “Non-Increasing Lender”). In the event
that, on the 10th day after the Administrative Agent shall have delivered such notice, the
Revolving Credit Lenders shall have agreed pursuant to the preceding sentence to increase
their Revolving Credit Commitments by an aggregate amount less than the increase in the
Total Revolving Credit Commitment requested by the Borrower, the Borrower may arrange for
one or more banks or other entities (any such bank or other entity being called an
“Augmenting Lender”), which may include any Lender, to extend Revolving
Credit Commitments or increase their existing Revolving Credit Commitments in an aggregate
amount equal to the unsubscribed amount; provided that, notwithstanding the
foregoing, (i) no person shall become a Revolving Credit Lender and no Revolving
Credit Lender’s Revolving Credit Commitment shall increase pursuant to this
Section 2.23 without the prior written consent of the Administrative Agent and the
Issuing Bank (which shall not be unreasonably withheld) and (ii) the L/C Commitment
of any Issuing Bank shall not be increased pursuant to this Section 2.23 without the
prior written consent of such Issuing Bank. The Borrower and each Augmenting Lender shall
execute all such documentation as the Administrative Agent shall reasonably specify to
evidence its Revolving Credit Commitment and/or its status as a Revolving Credit Lender
hereunder. Any increase in the Revolving Credit Commitment 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)    
          Each of the parties hereto hereby agrees that the Administrative Agent may take
          any and all actions as may be reasonably necessary to ensure that, after giving
          effect to any increase in the Total Revolving Credit Commitment pursuant to this
          Section 2.23, the outstanding Revolving Loans (if any) are held by the Revolving
          Credit Lenders in accordance with their new Pro Rata Percentages. This may be
          accomplished at the discretion of the Administrative Agent (i) by requiring
          the outstanding Revolving Loans to be prepaid with the proceeds of a new
          Revolving Credit Borrowing, (ii) by causing Non-Increasing Lenders to assign
          portions of their outstanding Revolving Loans to Increasing Lenders and
          Augmenting Lenders or (iii) by any combination of the foregoing. Any
          prepayment or assignment described in this paragraph (b) shall be subject to
          Section 2.16, but otherwise without premium or penalty. 

     (c)    
          Notwithstanding the foregoing, no increase in the Total Revolving Credit
          Commitment shall become effective under this Section 2.23 unless, (i) on the
          date of such increase, the conditions set forth in paragraphs (b) and (c) of
          Section 4.01 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) such customary closing documentation
          as the Administrative Agent shall have reasonably requested. 

ARTICLE III 

Representations and
Warranties 

        The
Borrower represents and warrants to the Administrative Agent, the Issuing Bank and each of
the Lenders that: 

SECTION 3.01. Organization;
Powers. The Borrower and each of the Subsidiaries (a) is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its organization,
(b) has all requisite power and authority to own its property and assets and to carry
on its business as now conducted and (c) is qualified to do business in, and is in
good standing in, every jurisdiction where such qualification is required, except where
the failure so to qualify could not reasonably be expected to result in a Material Adverse
Effect. 

SECTION 3.02. Authorization.
The execution, delivery and performance by the Borrower of this Agreement and the
transactions contemplated hereby (including the Borrowings hereunder) (collectively, the
“Transactions”) (a) are within the Borrower’s corporate powers
and have been duly authorized by all requisite corporate and, if required, stockholder
action and (b) will not (i) violate (A) any provision of law, statute, rule
or regulation, or of the certificate or articles of incorporation or other constitutive
documents or by-laws of the Borrower or any Subsidiary, (B) any order of any
Governmental Authority or (C) any provision of any indenture, agreement or other
instrument to which the Borrower or any Subsidiary is a party or by which any of them or
any of their property is or may be bound, the effect of which could reasonably be expected
to result in a Material Adverse Effect, (ii) result in a breach of or constitute
(alone or with notice or lapse of time or both) a default under, or give rise to any right
to accelerate or to require the prepayment, repurchase or redemption of any obligation
under any such indenture, agreement or other instrument, the effect of which could
reasonably be expected to result in a Material Adverse Effect, or (iii) result in the
creation or imposition of any Lien upon or with respect to any property or assets now
owned or hereafter acquired by the Borrower or any Subsidiary. 

SECTION 3.03. Enforceability.
This Agreement has been duly executed and delivered by the Borrower and constitutes a
legal, valid and binding obligation of the Borrower enforceable against the Borrower in
accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium, or similar laws affecting the enforceability of creditors’ rights
generally and to general principles of equity, regardless of whether considered in a
proceeding in equity or at law. 

SECTION 3.04. Governmental
Approvals. No action, consent or approval of, registration or filing with or any other
action by any Governmental Authority is or will be required in connection with the
Transactions, except for such as have been made or obtained and are in full force and
effect. 

SECTION 3.05. Financial
Statements. The Borrower has heretofore furnished to the Lenders its consolidated
balance sheets and related statements of income, stockholders’ equity and cash flows
(a) as of and for the fiscal year ended December 31, 2006, audited by and accompanied by
the opinion of PricewaterhouseCoopers LLP, independent public accountants, and (b) as of
and for the fiscal quarter and the portion of the fiscal year ended June 30, 2007,
certified by its chief financial officer. Such financial statements present fairly, in all
material respects, the financial condition and results of operations and cash flows of the
Borrower and its consolidated Subsidiaries as of such dates and for such periods in
accordance with GAAP, subject to normal year-end audit adjustments and the absence of
footnotes in the case of the statements referred to in clause (b) above. 

SECTION 3.06. No Material Adverse
Change. As of the Closing Date, since December 31, 2006, there has been no
material adverse change in the financial condition, results of operations or business of
the Borrower and the Subsidiaries, taken as a whole. 

SECTION 3.07. Subsidiaries.
Schedule 3.07 sets forth as of the Closing Date a list of all Subsidiaries and the
percentage ownership interest of the Borrower therein. 

SECTION 3.08. Litigation;
Compliance with Laws. (a) There are not any actions, suits or proceedings at law or in
equity or by or before any Governmental Authority now pending or, to the knowledge of the
Borrower, threatened against or affecting the Borrower or any Subsidiary or any business,
property or rights of any such person (i) that involve this Agreement or the
Transactions or (ii) as to which there is a reasonable possibility of an adverse
determination and that, if adversely determined, could reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect. 

     (b)    
          None of the Borrower or any of the Subsidiaries is in violation of any law, rule
          or regulation, or is in default with respect to any judgment, writ, injunction,
          decree or order of any Governmental Authority, where such violation or default
          could reasonably be expected to result in a Material Adverse Effect. 

SECTION 3.09. Federal Reserve
Regulations. (a) The Borrower is not engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of buying or carrying
Margin Stock. 

     (b)    
          No part of the proceeds of any Loan or any Letter of Credit will be used,
          whether directly or indirectly, and whether immediately, incidentally or
          ultimately, for any purpose that entails a violation of, or that is
          inconsistent with, the provisions of the Regulations of the Board, including
          Regulation T, U or X. 

SECTION 3.10. Investment Company
Act. None of the Borrower or any of the Subsidiaries is an “investment
company” as defined in, or subject to regulation under, the Investment Company Act of
1940. 

SECTION 3.11. Use of Proceeds.
The Borrower will use the proceeds of the Loans and will request the issuance of Letters
of Credit only for the purposes specified in the preamble to this Agreement. 

SECTION 3.12. Tax Returns.
Each of the Borrower and the Subsidiaries has filed or caused to be filed all Federal,
state, local and foreign tax returns or materials required to have been filed by it and
has paid or caused to be paid all Taxes due and payable by it and all assessments received
by it, except (a) Taxes that are being contested in good faith by appropriate
proceedings and for which the Borrower or such Subsidiary, as applicable, shall have set
aside on its books adequate reserves or (b) to the extent that the failure to do so
could not reasonably be expected to result in a Material Adverse Effect. 

SECTION 3.13. No Material
Misstatements. None of (a) the Confidential Information Memorandum or (b) any other
information, report, financial statement, exhibit or schedule furnished by or on behalf of
the Borrower to the Administrative Agent or any Lender in connection with the negotiation
of this Agreement contains any material misstatement of fact or omits to state any
material fact necessary to make the statements therein taken as a whole, in the light of
the circumstances under which they were made, not misleading; provided that to the
extent any such information, report, financial statement, exhibit or schedule was based
upon or constitutes a forecast or projection, the Borrower represents only that it acted
in good faith and utilized reasonable assumptions and due care in the preparation of such
information, report, financial statement, exhibit or schedule. 

SECTION 3.14. Employee Benefit
Plans. No ERISA Event has occurred or is reasonably expected to occur that, when taken
together with all other such ERISA Events, could reasonably be expected to result in a
Material Adverse Effect. The accumulated benefit obligations (as defined in Statement of
Financial Accounting Standards No. 87) under all Plans (based on the assumptions used for
purposes of Statement of Financial Accounting Standards No. 87) did not, as of the last
annual valuation dates applicable thereto, exceed by more than $75,000,000 the fair market
value of the assets of all such Plans. 

SECTION 3.15. Environmental
Matters. Except with respect to any matters that, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect, neither the
Borrower nor any of the Subsidiaries (a) 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, (b) is subject to any Environmental Liability,
(c) has received written notice of any claim with respect to any Environmental
Liability or (d) knows of any basis for any Environmental Liability of the Borrower or the
Subsidiaries. 

SECTION 3.16. Senior
Indebtedness. The Loans and other obligations hereunder constitute “Senior
Indebtedness” under and as defined in the Subordinated Note Documents. 

ARTICLE IV 

Conditions of Lending 

        The
obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of
Credit hereunder are subject to the satisfaction of the following conditions: 

SECTION 4.01.     All Credit Events. On the date of each Borrowing or issuance,  amendment,  extension or renewal of a Letter of Credit
(each such event being called a "Credit Event"):

     (a)    
          The Administrative Agent shall have received a notice of such Borrowing as
          required by Section 2.03 or 2.04, as applicable (or such notice shall have been
          deemed given in accordance with Section 2.04), or, in the case of the
          issuance, amendment, extension or renewal of a Letter of Credit, the Issuing
          Bank and the Administrative Agent shall have received a notice requesting the
          issuance, amendment, extension or renewal of such Letter of Credit as required
          by Section 2.22(b). 

     (b)    
          The representations and warranties set forth in Article III hereof shall be
          true and correct in all material respects on and as of the date of such Credit
          Event with the same effect as though made on and as of such date, except to the
          extent such representations and warranties expressly relate to an earlier date. 

     (c)    
          At the time of and immediately after such Credit Event, no Event of Default or
          Default shall have occurred and be continuing. 

        Each
Credit Event shall be deemed to constitute a representation and warranty by the Borrower
on the date of such Credit Event as to the matters specified in paragraphs (b) and (c) of
this Section 4.01. 

SECTION 4.02.     First Credit Event.  On the Closing Date:

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

     (b)    
          The Administrative Agent shall have received, on behalf of itself, the Lenders
          and the Issuing Bank, a favorable written opinion of each of (i) Bradford
          T. Smith, Chief Legal Officer of the Borrower, substantially to the effect set
          forth in Exhibit E-1, and (ii) Hogan & Hartson L.L.P., special
          counsel for the Borrower, substantially to the effect set forth in
          Exhibit E-2, (A) dated the Closing Date, (B) addressed to the
          Issuing Bank, the Administrative Agent and the Lenders, and (C) covering
          such other matters relating to this Agreement and the Transactions as the
          Administrative Agent shall reasonably request, and the Borrower hereby requests
          such counsel to deliver such opinions. 

     (c)    
          The Administrative Agent shall have received (i) a copy of the certificate
          of incorporation, including all amendments thereto, of the Borrower, certified
          as of a recent date by the Secretary of State of the State of Delaware, and a
          certificate as to the good standing of the Borrower as of a recent date, from
          such Secretary of State; (ii) a certificate of the Secretary or Assistant
          Secretary of the Borrower dated the Closing Date and certifying (A) that
          attached thereto is a true and complete copy of the by-laws of the Borrower as
          in effect on the Closing Date and at all times since a date prior to the date of
          the resolutions described in clause (B) below, (B) that attached
          thereto is a true and complete copy of resolutions duly adopted by the Board of
          Directors of the Borrower authorizing the execution, delivery and performance of
          this Agreement and the borrowings hereunder, and that such resolutions have not
          been modified, rescinded or amended and are in full force and effect,
          (C) that the certificate of incorporation of the Borrower has not been
          amended since the date of the last amendment thereto shown on the certificate of
          good standing furnished pursuant to clause (i) above, and (D) as to
          the incumbency and specimen signature of each officer executing this Agreement
          or any other document delivered in connection herewith on behalf of the
          Borrower; (iii) a certificate of another officer as to the incumbency and
          specimen signature of the Secretary or Assistant Secretary executing the
          certificate pursuant to clause (ii) above; and (iv) such other
          documents relating to the Borrower, this Agreement or the Transactions as the
          Lenders, the Issuing Bank or the Administrative Agent may reasonably request. 

     (d)    
          The Administrative Agent shall have received a certificate, dated the Closing
          Date and signed by a Financial Officer of the Borrower, confirming compliance
          with the conditions precedent set forth in paragraphs (b) and (c) of
          Section 4.01. 

     (e)    
          The Administrative Agent shall have received all Fees and other amounts due and
          payable on or prior to the Closing 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. 

     (f)    
          All principal, interest, fees and other amounts outstanding or due under the
          Existing Credit Agreement shall have been paid in full, the commitments
          thereunder terminated, and the Administrative Agent shall have received
          satisfactory evidence thereof. 

     (g)    
          The credit facilities provided for by this Agreement shall be rated not lower
          than BBB by S&P, and the Administrative Agent shall have received
          satisfactory evidence thereof. 

     (h)    
          The Lenders shall have received all documentation and other information
          requested by them and required by regulatory authorities under applicable
          “know your customer” and anti-money laundering rules and regulations,
          including the USA PATRIOT Act. 

ARTICLE V 

Affirmative Covenants 

        The
Borrower covenants and agrees with each Lender that until the Commitments have been
terminated and the principal of and interest on each Loan, all Fees and all other expenses
or amounts payable hereunder shall have been paid in full and all Letters of Credit have
been canceled or have expired and all amounts drawn thereunder have been reimbursed in
full, unless the Required Lenders shall otherwise consent in writing, the Borrower will,
and will cause each of the Subsidiaries to: 

SECTION 5.01.     Existence;  Businesses and Properties.  (a) Do or cause to be done all things  necessary to preserve,  renew and keep
in full force and effect its legal existence, except as otherwise expressly permitted under Section 6.04.

     (b)    
          Do or cause to be done all things necessary to obtain, preserve, renew, extend
          and keep in full force and effect its rights, licenses, permits, franchises,
          authorizations, patents, copyrights, trademarks and trade names, and comply in
          all material respects with all applicable laws, rules, regulations and decrees
          and orders of any Governmental Authority, in each case except where the failure
          to do so could not reasonably be expected to result in a Material Adverse
          Effect. 

SECTION 5.02. Insurance.
Maintain with responsible and reputable insurance companies insurance, to such extent and
against such risks as is customary with companies in the same or similar businesses
operating in the same or similar locations. 

SECTION 5.03. Obligations and
Taxes. Pay its Indebtedness and other obligations, including Taxes, before the same
shall become delinquent or in default, except where (a)  the validity or amount
thereof shall be contested in good faith by appropriate proceedings and the Borrower shall
have set aside on its books adequate reserves with respect thereto in accordance with GAAP
or (b) to the extent that the failure to do so could not reasonably be expected to
result in a Material Adverse Effect. 

SECTION 5.04.     Financial  Statements,  Reports,  etc.  In the case of the  Borrower,  furnish to the  Administrative  Agent and each
Lender:

     (a)    
          within 105 days after the end of each fiscal year, its consolidated balance
          sheet and related statements of income, stockholders’ equity and cash flows
          as of the close of and for such fiscal year, together with comparative figures
          for the immediately preceding fiscal year, all audited by PricewaterhouseCoopers
          LLP or other independent public accountants of recognized national standing and
          accompanied by an opinion of such accountants (which shall not be qualified in
          any material respect) to the effect that such consolidated financial statements
          present fairly in all material respects the financial condition and results of
          operations of the Borrower and its consolidated Subsidiaries on a consolidated
          basis in accordance with GAAP consistently applied; 

     (b)    
          within 50 days after the end of each of the first three fiscal quarters of
          each fiscal year, its consolidated balance sheet and related statements of
          income, stockholders’ equity and cash flows as of the close of and for such
          fiscal quarter and the then elapsed portion of the fiscal year, and comparative
          figures for the same periods in the immediately preceding 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 the Borrower 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 under paragraph (a)
          or (b) above, a certificate of a Financial Officer (i) certifying that no
          Event of Default or Default has occurred or, if such an Event of Default or
          Default has occurred, specifying the nature and extent thereof and any
          corrective action taken or proposed to be taken with respect thereto,
          (ii) setting forth computations in reasonable detail satisfactory to the
          Administrative Agent demonstrating compliance with the covenants contained in
          Sections 6.07 and 6.08 and (iii) stating whether any change in GAAP or
          in the application thereof has occurred since the date of the audited financial
          statements referred to in Section 3.05 and, if any such change has
          occurred, specifying the effect of such change on the financial statements
          accompanying such certificate; 

     (d)    
          promptly after the same become publicly available, copies of all periodic and
          other reports, proxy statements and other materials filed by 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 to its shareholders, as the
          case may be; 

     (e)    
          promptly after the receipt thereof by the Borrower or any of its Subsidiaries, a
          copy of any “management letter” received by any such person from its
          certified public accountants and the management’s response thereto; 

     (f)    
          promptly, from time to time, such other information regarding the operations,
          business affairs and financial condition of the Borrower or any Subsidiary, or
          compliance with the terms of this Agreement, as the Administrative Agent or any
          Lender may reasonably request; 

     (g)    
          promptly, following a request by any Lender, all documentation and other
          information that such Lender reasonably requests in order to comply with its
          ongoing obligations under applicable “know your customer” and
          anti-money laundering rules and regulations, including the USA PATRIOT Act. 

SECTION 5.05. Litigation and Other
Notices. In the case of the Borrower, furnish to the Administrative Agent, the Issuing
Bank and each Lender prompt written notice of the following: 

     (a)    
          any Event of Default or Default, specifying the nature and extent thereof and
          the corrective action (if any) taken or proposed to be taken with respect
          thereto; 

     (b)    
          the filing or commencement of, or any written threat or notice of intention of
          any person to file or commence, any action, suit or proceeding, whether at law
          or in equity or by or before any Governmental Authority, against the Borrower or
          any Affiliate thereof that could reasonably be expected to result in a Material
          Adverse Effect; 

     (c)    
          any change in the rating by S&P of the Index Debt; and 

     (d)    
          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 a Material
          Adverse Effect. 

SECTION 5.06. Maintaining Records;
Access to Properties and Inspections. Keep books of record and account in conformity
with GAAP and all requirements of law in relation to its business and activities. 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 the financial records and the properties of the Borrower or any
Subsidiary at reasonable times and as often as reasonably requested and to make extracts
from and copies of such financial records, and permit any representatives designated by
the Administrative Agent or any Lender to discuss the affairs, finances and condition of
the Borrower or any Subsidiary with the officers thereof and independent accountants
therefor. 

SECTION 5.07. Use of Proceeds.
Use the proceeds of the Loans and request the issuance of Letters of Credit only for the
purposes set forth in the preamble to this Agreement. 

ARTICLE VI 

Negative Covenants 

        The
Borrower covenants and agrees with each Lender that, until the Commitments have been
terminated and the principal of and interest on each Loan, all Fees and all other expenses
or amounts payable hereunder have been paid in full and all Letters of Credit have been
canceled or have expired and all amounts drawn thereunder have been reimbursed in full,
unless the Required Lenders shall otherwise consent in writing, the Borrower will not, and
will not cause or permit any of the Subsidiaries to: 

SECTION 6.01.     Subsidiary  Indebtedness.  With respect to the  Subsidiaries,  incur,  create,  issue,  assume or permit to exist any
Indebtedness or preferred stock, except:

     (a)    
          Indebtedness or preferred stock existing on the date hereof and having an
          aggregate principal amount (or, in the case of preferred stock, an aggregate
          liquidation preference) of less than $25,000,000 in the aggregate and, in the
          case of any such Indebtedness, any extensions, renewals or replacements thereof
          to the extent the principal amount of such Indebtedness is not increased, and
          such Indebtedness, if subordinated to the Loans, remains so subordinated on
          terms no less favorable to the Lenders, and the original obligors in respect of
          such Indebtedness remain the only obligors thereon; 

     (b)    
          Indebtedness created or existing hereunder; 

     (c)    
          intercompany Indebtedness or preferred stock to the extent owing to or held by
          the Borrower or another Subsidiary; 

     (d)    
          Indebtedness of any Subsidiary incurred to finance the acquisition, construction
          or improvement of any fixed or capital assets, and extensions, renewals and
          replacements of any such Indebtedness that do not increase the outstanding
          principal amount thereof; provided that (i) such Indebtedness is
          incurred prior to or within 180 days after such acquisition or the
          completion of such construction or improvement and (ii) the aggregate
          principal amount of Indebtedness permitted by this Section 6.01(d), when
          combined with the aggregate principal amount of all Capital Lease Obligations
          incurred pursuant to Section 6.01(e) and then outstanding and all
          Indebtedness incurred pursuant to Section  6.01(f) and then
          outstanding, shall not exceed at the time of incurrence the greater of (x)
          $170,000,000 and (y) 5% of Consolidated Total Assets; 

     (e)    
          Capital Lease Obligations in an aggregate principal amount, when combined with
          the aggregate principal amount of all Indebtedness incurred pursuant to
          Section 6.01(d) and then outstanding and Section 6.01(f) and then
          outstanding, not to exceed at the time of incurrence the greater of (x)
          $170,000,000 and (y) 5% of Consolidated Total Assets; 

     (f)    
          Indebtedness of any person that becomes a Subsidiary after the date hereof;
          provided that (i) 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, (ii) immediately before and after
          such person becomes a Subsidiary, no Event of Default or Default shall have
          occurred and be continuing and (iii) the aggregate principal amount of
          Indebtedness permitted by this clause (f), when combined with the aggregate
          principal amount of all Indebtedness incurred pursuant to Section 6.01(d)
          and then outstanding and all Capital Lease Obligations incurred pursuant to
          Section 6.01(e) and then outstanding, shall not exceed at the time of
          incurrence the greater of (x) $170,000,000 and (y) 5% of Consolidated Total
          Assets; 

     (g)    
          Indebtedness under performance bonds or with respect to workers’
          compensation claims, in each case incurred in the ordinary course of business;
          and 

     (h)    
          additional Indebtedness (including attributable Indebtedness in respect of
          sale-leaseback transactions) or preferred stock of the Subsidiaries to the
          extent not otherwise permitted by the foregoing clauses of this Section 6.01 in
          an aggregate principal amount (or, in the case of preferred stock, with an
          aggregate liquidation preference), when combined (without duplication) with the
          amount of obligations of the Borrower and its Subsidiaries secured by Liens
          pursuant to Section 6.02(j) and then outstanding, not to exceed at the time of
          incurrence the greater of (x) $170,000,000 and (y) 5% of Consolidated Total
          Assets. 

SECTION 6.02. Liens. Create,
incur, assume or permit to exist any Lien on any property or assets (including Equity
Interests or other securities of any person, including any Subsidiary) now owned or
hereafter acquired by it or on any income or revenues or rights in respect of any thereof,
except: 

     (a)    
          Liens on property or assets of the Borrower and its Subsidiaries existing on the
          date hereof and encumbering property or assets with a fair market value, and
          securing obligations having an aggregate principal amount, in each case less
          than $25,000,000 in the aggregate; provided that (x) such Liens
          shall secure only those obligations which they secure on the date hereof and
          extensions, renewals and replacements thereof permitted hereunder and
          (y) such Liens shall not apply to any other property or assets of the
          Borrower or any of the Subsidiaries; 

     (b)    
          any Lien existing on any property or asset prior to the acquisition thereof by
          the Borrower or any Subsidiary or existing on any property or asset of any
          person that becomes a Subsidiary after the date hereof prior to the time such
          person becomes a Subsidiary; provided that (i) 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, (ii) such Lien does not
          apply to any other property or assets of the Borrower or any Subsidiary and
          (iii) such Lien shall secure only those obligations which it secures on the
          date of such acquisition or the date such person becomes a Subsidiary, as the
          case may be and extensions, renewals and replacements thereof permitted
          hereunder; 

     (c)    
          Liens for taxes not yet due or which are being contested in compliance with
          Section 5.03; 

     (d)    
          carriers’, warehousemen’s, mechanics’, materialmen’s,
          repairmen’s or other like Liens arising in the ordinary course of business
          and securing obligations that are not overdue by more than 90 days or which are
          being contested in compliance with Section 5.03; 

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

     (f)    
          deposits to secure the performance of bids, trade contracts (other than for
          Indebtedness), leases (other than Capital Lease Obligations), statutory
          obligations, surety and appeal bonds, performance bonds and other obligations of
          a like nature, in each case in the ordinary course of business; 

     (g)    
          zoning restrictions, easements, rights-of-way, restrictions on use of real
          property and other similar encumbrances incurred in the ordinary course of
          business which, in the aggregate, are not substantial in amount and do not
          materially detract from the value of the property subject thereto or interfere
          with the ordinary conduct of the business of the Borrower or any of its
          Subsidiaries; 

     (h)    
          purchase money security interests in real property, improvements thereto or
          equipment hereafter acquired (or, in the case of improvements, constructed) by
          the Borrower or any Subsidiary; provided that (i) such security
          interests secure Indebtedness not prohibited by Section 6.01,
          (ii) such security interests are incurred, and the Indebtedness secured
          thereby is created, within 180 days after such acquisition (or
          construction) and (iii) such security interests do not apply to any other
          property or assets of the Borrower or any Subsidiary; 

     (i)    
          Liens in respect of judgments that do not constitute an Event of Default; and 

     (j)    
          Liens not otherwise permitted by the foregoing clauses of this Section 6.02
          securing obligations otherwise permitted by this Agreement in an aggregate
          principal and face amount, when combined (without duplication) with the amount
          of Indebtedness or preferred stock of Subsidiaries incurred pursuant to Section
          6.01(h) and then outstanding, not to exceed at the time of incurrence the
          greater of (x) $170,000,000 and (y) 5% of Consolidated Total Assets. 

SECTION 6.03. Sale and Lease-Back
Transactions. 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 unless (a) the sale of such property is
permitted by Section 6.04 and (b) any Capital Lease Obligations or Liens arising in
connection therewith are permitted by Sections 6.01 and 6.02, respectively. 

SECTION 6.04. Mergers,
Consolidations and Sales of Assets. Merge into or consolidate with any other person,
or permit any other person to merge into or consolidate with it, or sell, transfer, lease
or otherwise dispose of (in one transaction or in a series of transactions) all or
substantially all the assets (whether now owned or hereafter acquired) of the Borrower, or
liquidate or dissolve, except that, if at the time thereof and immediately after giving
effect thereto no Event of Default or Default shall have occurred and be continuing,
(a) any person may merge into the Borrower in a transaction in which the Borrower is
the surviving corporation, (b) any person, other than the Borrower, may merge into or
consolidate with any Subsidiary in a transaction in which the surviving entity is a
Subsidiary and (c) any Subsidiary may liquidate or dissolve if the Borrower
determines in good faith that such liquidation or dissolution is in the best interests of
the Borrower and is not materially disadvantageous to the Lenders. 

SECTION 6.05. Restricted
Payments. Declare or make, or agree to declare or make, directly or indirectly, any
Restricted Payment (including pursuant to any Synthetic Purchase Agreement), or incur any
obligation (contingent or otherwise) to do so if, at the time thereof and immediately
after giving effect thereto, (a) any Default or Event of Default shall have occurred
and be continuing or (b) the Leverage Ratio on the date of such Restricted Payment
would be greater than 2.0 to 1.0; provided, however, that (i) any
Subsidiary may declare and pay dividends or make other distributions ratably to holders of
Equity Interests in it, (ii) the Borrower may declare and pay dividends or make other
distributions of its Equity Interests and (iii) so long as no Default or Event of
Default shall have occurred and be continuing or would result therefrom, the Borrower and
the Subsidiaries may declare and make, directly or indirectly, additional Restricted
Payments to the extent not otherwise permitted by the foregoing clauses of this
Section 6.05 in an aggregate amount not to exceed $100,000,000. 

SECTION 6.06. Business of Borrower
and Subsidiaries. Engage to any material extent in any business or business activity
other than businesses of the type currently conducted by the Borrower and the Subsidiaries
and business activities reasonably related thereto. 

SECTION 6.07. Interest Coverage
Ratio. Permit the Interest Coverage Ratio for any period of four consecutive fiscal
quarters, in each case taken as one accounting period, to be less than 5.0 to 1.0. 

SECTION 6.08. Maximum Leverage
Ratio. Permit the Leverage Ratio on the last day of any period of four consecutive
fiscal quarters, in each case taken as one accounting period, to be greater than 2.5 to
1.0. 

SECTION 6.09. Hedging
Agreements. Enter into any Hedging Agreement other than non-speculative Hedging
Agreements entered into to hedge or mitigate risks to which the Borrower or a Subsidiary
is exposed in the ordinary course of the conduct of its business or the management of its
liabilities. 

ARTICLE VII 

Events of Default 

        In
case of the happening of any of the following events (“Events of
Default”): 

     (a)    
          any representation or warranty made or deemed made in or in connection with this
          Agreement or the Borrowings or issuances of Letters of Credit hereunder, or any
          representation, warranty, statement or information contained in any report,
          certificate, financial statement or other instrument furnished in connection
          with or pursuant to this Agreement, shall prove to have been false or misleading
          in any material respect when so made, deemed made or furnished; 

     (b)    
          default shall be made in the payment of any principal of any Loan or the
          reimbursement with respect to any L/C 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 by acceleration thereof or otherwise; 

     (c)    
          default shall be made in the payment of any interest on any Loan or any Fee or
          L/C Disbursement or any other amount (other than an amount referred to in
          (b) above) due under this Agreement, when and as the same shall become due
          and payable, and such default shall continue unremedied for a period of five
          Business Days; 

     (d)    
          default shall be made in the due observance or performance by the Borrower or
          any Subsidiary of any covenant, condition or agreement contained in
          Section 5.01(a) (with respect to the Borrower), 5.05(a) or 5.07 or in
          Article VI; 

     (e)    
          default shall be made in the due observance or performance by the Borrower or
          any Subsidiary of any covenant, condition or agreement contained in this
          Agreement (other than those specified in (b), (c) or (d) above) and such default
          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)    
          (i) the Borrower or any Material Subsidiary shall fail to pay any principal
          or interest, regardless of amount, due in respect of any Material Indebtedness,
          when and as the same shall become due and payable (after giving effect to any
          applicable grace period), or (ii) any other event or condition occurs
          (after giving effect to any applicable grace period) that results in any
          Material Indebtedness becoming due prior to its scheduled maturity or that
          enables or permits 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 (ii) 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; 

     (g)    
          an involuntary proceeding shall be commenced or an involuntary petition shall be
          filed in a court of competent jurisdiction seeking (i) relief in respect of
          the Borrower or any Material Subsidiary, or of a substantial part of the
          property or assets of the Borrower or a Material Subsidiary, under Title 11
          of the United States Code, as now constituted or hereafter amended, or any other
          Federal, state or foreign bankruptcy, insolvency, receivership or similar law,
          (ii) the appointment of a receiver, trustee, custodian, sequestrator,
          conservator or similar official for the Borrower or any Material Subsidiary or
          for a substantial part of the property or assets of the Borrower or a Material
          Subsidiary or (iii) the winding-up or liquidation of the Borrower or any
          Material Subsidiary; and 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; 

     (h)    
          the Borrower or any Material Subsidiary shall (i) voluntarily commence any
          proceeding or file any petition seeking relief under Title 11 of the United
          States Code, as now constituted or hereafter amended, or any other Federal,
          state or foreign bankruptcy, insolvency, receivership or similar law,
          (ii) consent to the institution of, or fail to contest in a timely and
          appropriate manner, any proceeding or the filing of any petition described in
          (g) above, (iii) apply for or consent to the appointment of a receiver,
          trustee, custodian, sequestrator, conservator or similar official for the
          Borrower or any Material Subsidiary or for a substantial part of the property or
          assets of the Borrower or any Material Subsidiary, (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,
          (vi) become unable, admit in writing its inability or fail generally to pay
          its debts as they become due or (vii) take any action for the purpose of
          effecting any of the foregoing; 

     (i)    
          one or more judgments for the payment of money in an amount in excess of
          $50,000,000 individually or $75,000,000 in the aggregate shall be rendered
          against the Borrower, any Material 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 to levy upon assets or properties of the Borrower
          or any Material Subsidiary to enforce any such judgment; provided,
          however, that any such judgment shall not be an Event of Default under this
          paragraph (i) if and for so long as (i) the entire amount of such judgment in
          excess of $50,000,000 individually or $75,000,000 in the aggregate is covered by
          a valid and binding policy of insurance between the defendant and the insurer
          covering payment thereof and (ii) such insurer, which shall be rated at least
          “A” by A.M. Best Company, has been notified of, and has not disputed
          the claim made for payment of the amount of such judgment; 

     (j)    
          one or more ERISA Events shall have occurred that results in liability of the
          Borrower and its ERISA Affiliates exceeding $50,000,000 individually or
          $75,000,000 in the aggregate; or 

     (k)    
          there shall have occurred a Change in Control; 

then, and in every such event (other
than an event with respect to the Borrower described in paragraph (g) or (h) above),
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 forthwith the Commitments and (ii) declare the
Loans then outstanding to be forthwith due and payable in whole or in part, whereupon the
principal of the Loans so declared to be due and payable, together with accrued interest
thereon and any unpaid accrued Fees and all other liabilities of the Borrower accrued
hereunder, shall become forthwith due and payable, without presentment, demand, protest or
any other notice of any kind, all of which are hereby expressly waived by the Borrower,
anything contained hereinto the contrary notwithstanding; and in any event with respect to
the Borrower described in paragraph (g) or (h) above, the Commitments shall
automatically terminate and the principal of the Loans then outstanding, together with
accrued interest thereon and any unpaid accrued Fees and all other liabilities of the
Borrower accrued hereunder, shall automatically become due and payable, without
presentment, demand, protest or any other notice of any kind, all of which are hereby
expressly waived by the Borrower, anything contained herein to the contrary
notwithstanding. 

ARTICLE VIII 

The Administrative Agent 

        Each
of the Lenders and the Issuing Bank hereby irrevocably appoints the Administrative Agent
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 this
Agreement, 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 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 this Agreement. 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
this Agreement 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 9.08), and (c) except as expressly set
forth herein, the Administrative Agent shall not have any duty to disclose, and shall not
be liable for the failure to disclose, any information relating to the Borrower or any of
the 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 9.08) or in the absence of its own gross
negligence or wilful misconduct. The Administrative Agent shall not be deemed to have
knowledge of any Default unless and until written notice thereof is given to the
Administrative Agent by 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 this Agreement, (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 herein, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement or any other agreement, instrument or
document, or (v) the satisfaction of any condition set forth in Article IV or elsewhere
herein, other than to confirm receipt of items expressly required to be delivered to the
Administrative Agent. 

        The
Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document
or other writing believed by it to be genuine and to have been signed or sent by the
proper person. The Administrative Agent may also rely upon any statement made to it orally
or by telephone and believed by it to have been 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 it. The Administrative Agent and any
such sub-agent may perform any and all its duties and exercise its rights and powers by or
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 Administrative Agent as provided below,
the Administrative Agent may resign at any time by notifying the Lenders, the Issuing Bank
and the Borrower. Upon any such resignation, the Required Lenders shall have the right,
with the consent of the Borrower (such consent not to be unreasonably withheld or
delayed), 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 Bank, 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, that is acceptable to the Borrower (which shall not
unreasonably withhold its approval). 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 VIII and Section 9.05 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 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 Agreement, any related
agreement or any document furnished hereunder or thereunder. 

        Anything
herein to the contrary notwithstanding, none of the Lead Arranger or Bookrunner listed on
the cover page hereof shall have any powers, duties or responsibilities under this
Agreement or any other loan document, except in its capacity, as applicable, as the
Administrative Agent or a Lender. 

ARTICLE IX 

Miscellaneous 

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

     (a)    
          if to the Borrower, to it at 358 South Main Street, Burlington, NC 27215,
          Attention of William B. Hayes  (Telecopy No. (336) 227-9410); 

     (b)    
          if to the Administrative Agent, to Credit Suisse, Eleven Madison Avenue, New
          York, NY 10010, Attention of Agency Group Manager (Telecopy No.
          (212) 325- 8304); and 

     (c)    
          if to a Lender, to it at its address (or telecopy number) set forth on
          Schedule 2.01 or in the Assignment and Acceptance pursuant to which such
          Lender shall have become a party hereto. 

All notices and other communications
given to any party hereto in accordance with the provisions of this Agreement shall be
deemed to have been given on the date of receipt. 

SECTION 9.02. Survival of
Agreement. All covenants, agreements, representations and warranties made by the
Borrower herein and in the certificates or other instruments prepared or delivered in
connection with or pursuant to this Agreement shall be considered to have been relied upon
by the Lenders and the Issuing Bank and shall survive the making by the Lenders of the
Loans and the issuance of Letters of Credit by the Issuing Bank, regardless of any
investigation made by the Lenders or the Issuing Bank or on their behalf, 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 Commitments have not been
terminated. The provisions of Sections 2.14, 2.16, 2.20 and 9.05 shall remain operative
and in full force and effect regardless of the expiration of the term of this Agreement,
the consummation of the transactions contemplated hereby, the repayment of any of the
Loans, the expiration of the Commitments, the expiration of any Letter of Credit, the
invalidity or unenforceability of any term or provision of this Agreement, or any
investigation made by or on behalf of the Administrative Agent, any Lender or the Issuing
Bank. 

SECTION 9.03. Binding Effect.
This Agreement shall become effective when it shall have been executed by the Borrower and
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. 

SECTION 9.04. Successors and
Assigns. (a) Whenever in this Agreement any of the parties hereto is referred to, such
reference shall be deemed to include the permitted successors and assigns of such party;
and all covenants, promises and agreements by or on behalf of the Borrower, the
Administrative Agent, the Issuing Bank or the Lenders that are contained in this Agreement
shall bind and inure to the benefit of their respective successors and assigns. 

     (b)    
          Each Lender may assign to one or more Eligible Assignees all or a portion of its
          interests, rights and obligations under this Agreement (including all or a
          portion of its Commitment and the Loans at the time owing to it) with the prior
          written consent of the Administrative Agent (and, in the case of any assignment
          of a Revolving Credit Commitment, the Issuing Bank) (which consent shall not be
          unreasonably withheld or delayed); provided, however, that
          (i) except in the case of an assignment from (A) a Revolving Credit Lender
          to a Revolving Credit Lender or an Affiliate of a Revolving Credit Lender or (B)
          a Term Lender to a Lender or an Affiliate of a Lender, (x) the Borrower must
          give its prior written consent to such assignment (which consent shall not be
          unreasonably withheld or delayed); provided, however, that the
          consent of the Borrower shall not be required to any such assignment during the
          continuance of any Event of Default described in paragraph (g) or (h) of
          Article VII, and (y) the amount of the Commitment or Loans of the assigning
          Lender subject to each such assignment (determined as of the date the Assignment
          and Acceptance with respect to such assignment is delivered to the
          Administrative Agent) shall not be less than (A) in the case of Revolving Credit
          Commitments, $5,000,000 and (B) in the case of Term Loan Commitments and Term
          Loans, $1,000,000 (or, in each case, if less, the entire remaining amount of
          such Lender’s applicable Commitment or Loans), (ii) each such
          assignment shall be of a constant, and not a varying, percentage of all the
          assigning Lender’s rights and obligations under this Agreement in respect
          of the Class of Loans or Commitments so assigned, (iii) the parties to each
          such assignment shall execute and deliver to the Administrative Agent an
          Assignment and Acceptance via an electronic settlement system acceptable to the
          Administrative Agent (or, if previously agreed with the Administrative Agent,
          manually), and shall pay to the Administrative Agent a processing and
          recordation fee of $3,500 (which fee may be waived or reduced in the sole
          discretion of the Administrative Agent) and (iv) the assignee, if it shall
          not be a Lender, shall deliver to the Administrative Agent an Administrative
          Questionnaire and applicable tax forms. Upon acceptance and recording pursuant
          to paragraph (e) of this Section 9.04, from and after the effective
          date specified in each Assignment and Acceptance, (A) the assignee thereunder
          shall be a party hereto and, to the extent of the interest assigned by such
          Assignment and Acceptance, have the rights and obligations of a Lender under
          this Agreement and (B) the assigning Lender thereunder shall, to the extent
          of the interest assigned by such Assignment and Acceptance, be released from its
          obligations under this Agreement (and, in the case of an Assignment and
          Acceptance covering all or the remaining portion of an 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, 2.16, 2.20 and 9.05, as well as to any Fees accrued for its
          account and not yet paid). Notwithstanding the foregoing, any Lender assigning
          its rights and obligations under this Agreement may retain any Competitive Loans
          made by it outstanding at such time, and in such case shall retain its rights
          hereunder in respect of any such Loans so retained until such Loans have been
          repaid in full in accordance with this Agreement. 

     (c)    
          By executing and delivering an Assignment and Acceptance, the assigning Lender
          thereunder and the assignee thereunder shall be deemed to confirm to and agree
          with each other and the other parties hereto as
          follows:  (i) such assigning Lender warrants that it is the legal
          and beneficial owner of the interest being assigned thereby free and clear of
          any adverse claim and that its Term Loan Commitment and Revolving Credit
          Commitment, and the outstanding balances of its Term Loans, Revolving Loans and
          Competitive Loans, in each case without giving effect to assignments thereof
          which have not become effective, are as set forth in such Assignment and
          Acceptance, (ii) except as set forth in (i) above, such assigning
          Lender makes no representation or warranty and assumes no responsibility with
          respect to any statements, warranties or representations made in or in
          connection with this Agreement, or the execution, legality, validity,
          enforceability, genuineness, sufficiency or value of this Agreement or any other
          instrument or document furnished pursuant hereto, or the financial condition of
          the Borrower or any Subsidiary or the performance or observance by the Borrower
          or any Subsidiary of any of its obligations under this Agreement or any other
          instrument or document furnished pursuant hereto; (iii) such assignee
          represents and warrants that it is an Eligible Assignee and is legally
          authorized to enter into such Assignment and Acceptance; (iv) such assignee
          confirms that it has received a copy of this Agreement, together with copies of
          the most recent financial statements referred to in Section 3.05 or
          delivered pursuant to Section 5.04 and such other documents and information
          as it has deemed appropriate to make its own credit analysis and decision to
          enter into such Assignment and Acceptance; (v) such assignee will
          independently and without reliance upon the Administrative Agent, such assigning
          Lender or any other Lender and based on such documents and information as it
          shall deem appropriate at the time, continue to make its own credit decisions in
          taking or not taking action under this Agreement; (vi) such assignee
          appoints and authorizes the Administrative Agent to take such action as agent on
          its behalf and to exercise such powers under this Agreement as are delegated to
          the Administrative Agent by the terms hereof, together with such powers as are
          reasonably incidental thereto; and (vii) such assignee agrees that it will
          perform in accordance with their terms all the obligations which by the terms of
          this Agreement are required to be performed by it as a Lender. 

     (d)    
          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 Acceptance delivered to it and a register for the recordation of
          the names and addresses of the Lenders, and the Commitment of, and principal
          amount of the Loans 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 Bank 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, the Issuing Bank and any Lender, at any reasonable
          time and from time to time upon reasonable prior notice. 

     (e)    
          Upon its receipt of a duly completed Assignment and Acceptance executed by an
          assigning Lender and an assignee, an Administrative Questionnaire completed in
          respect of the assignee (unless the assignee shall already be a Lender
          hereunder), the processing and recordation fee referred to in paragraph (b)
          above and, if required, the written consent of the Borrower, the Issuing Bank
          and the Administrative Agent to such assignment, the Administrative Agent shall
          (i) accept such Assignment and Acceptance and (ii) record the
          information contained therein in the Register. No assignment shall be effective
          unless it has been recorded in the Register as provided in this
          paragraph (e). 

     (f)    
          Each Lender may without the consent of the Borrower, the Issuing Bank or the
          Administrative Agent sell participations to one or more banks or other entities
          in all or a portion of its rights and obligations under this Agreement
          (including all or a portion of its Commitment and the Loans owing to it);
          provided, however, that (i) such Lender’s obligations
          under this Agreement shall remain unchanged, (ii) such Lender shall remain
          solely responsible to the other parties hereto for the performance of such
          obligations, (iii) the participating banks or other entities shall be
          entitled to the benefit of the cost protection provisions contained in
          Sections 2.14, 2.16 and 2.20 to the same extent as if they were Lenders
          (but, with respect to any particular participant and the amount of its
          participation, to no greater extent than the Lender that sold the participation
          to such participant) and (iv) the Borrower, the Administrative Agent, the
          Issuing Bank and the Lenders shall continue to deal solely and directly with
          such Lender in connection with such Lender’s rights and obligations under
          this Agreement, and such Lender shall retain the sole right to enforce the
          obligations of the Borrower relating to the Loans or L/C Disbursements and to
          approve any amendment, modification or waiver of any provision of this Agreement
          (other than amendments, modifications or waivers decreasing any fees payable
          hereunder or the amount of principal of or the rate at which interest is payable
          on the Loans, extending any scheduled principal payment date or date fixed for
          the payment of interest on the Loans or increasing or extending the
          Commitments). 

     (g)    
          Any Lender or participant may, in connection with any assignment or
          participation or proposed assignment or participation pursuant to this
          Section 9.04, disclose to the assignee or participant or proposed assignee
          or participant any information relating to the Borrower furnished to such Lender
          by or on behalf of the Borrower; provided that, prior to any such
          disclosure of information designated by the Borrower as confidential, each such
          assignee or participant or proposed assignee or participant shall execute an
          agreement whereby such assignee, assignee or participant shall agree (subject to
          customary exceptions) to preserve the confidentiality of such confidential
          information on terms no less restrictive than those applicable to the Lenders
          pursuant to Section 9.16. 

     (h)    
          Any Lender may at any time assign all or any portion of its rights under this
          Agreement to secure extensions of credit to such Lender or in support of
          obligations owed by such Lender; provided that no such assignment shall
          release a Lender from any of its obligations hereunder or substitute any such
          assignee for such Lender as a party hereto. 

     (i)    
          Notwithstanding anything to the contrary contained herein, any Lender (a
          “Granting Lender”) may grant to a special purpose funding
          vehicle (an “SPC”), 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 SPC to make any Loan and (ii) if an SPC elects not to
          exercise such option or otherwise fails to provide all or any part of such Loan,
          the Granting Lender shall be obligated to make such Loan pursuant to the terms
          hereof. The making of a Loan by an SPC hereunder shall utilize the 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 SPC 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 SPC, it will not institute against, or join any other
          person in instituting against, such SPC 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 contained in this Section 9.04, any SPC 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 Administrative Agent)
          providing liquidity and/or credit support to or for the account of such SPC 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 SPC. 

     (j)    
          The Borrower shall not assign or delegate any of its rights or duties hereunder
          without the prior written consent of the Administrative Agent, the Issuing Bank
          and each Lender, and any attempted assignment without such consent shall be null
          and void. 

     (k)    
          In the event that S&P, Moody’s or Thompson’s BankWatch (or
          InsuranceWatch Ratings Service, in the case of Lenders that are insurance
          companies (or Best’s Insurance Reports, if such insurance company is not
          rated by Insurance Watch Ratings Service)) shall, after the date that any Lender
          becomes a Revolving Credit Lender, downgrade the long-term certificate of
          deposit ratings of such Lender, and the resulting ratings shall be below BBB-,
          Baa3 and C (or BB, in the case of a Lender that is an insurance company (or B,
          in the case of an insurance company not rated by InsuranceWatch Ratings
          Service)) (or, with respect to any Revolving Credit Lender that is not rated by
          any such ratings service or provider, the Issuing Bank shall have reasonably
          determined that there has occurred a material adverse change in the financial
          condition of any such Lender, or a material impairment of the ability of any
          such Lender to perform its obligations hereunder, as compared to such condition
          or ability as of the date that any such Lender became a Revolving Credit
          Lender), then the Issuing Bank shall have the right, but not the obligation, at
          its own expense, upon notice to such Lender and the Administrative Agent, to
          replace (or to request the Borrower to use its reasonable efforts to replace)
          such Lender with an Eligible Assignee (in accordance with and subject to the
          restrictions contained in paragraph (b) above), and such Lender hereby
          agrees to transfer and assign without recourse (in accordance with and subject
          to the restrictions contained in paragraph (b) above) all its interests,
          rights and obligations in respect of its Revolving Credit Commitment to such
          Eligible Assignee; provided, however, that (i) no such
          assignment shall conflict with any law, rule and regulation or order of any
          Governmental Authority and (ii) the Issuing Bank or such Eligible Assignee,
          as the case may be, shall pay to such Lender in immediately available funds on
          the date of such assignment the principal of and interest accrued to the date of
          payment on the Loans made by such Lender hereunder and all other amounts accrued
          for such Lender’s account or owed to it hereunder. Each Lender hereby
          grants to the Administrative Agent an irrevocable power of attorney (which power
          is coupled with an interest) to execute and deliver, on behalf of such Lender as
          assignor, any Assignment and Acceptance necessary to effectuate any assignment
          of such Lender’s interests hereunder in the circumstances contemplated by
          this paragraph (k). 

SECTION 9.05. Expenses;
Indemnity. (a) The Borrower agrees to pay all reasonable out-of-pocket expenses
incurred by the Administrative Agent and the Issuing Bank in connection with the
syndication of the credit facilities provided for herein and the preparation and
administration of this Agreement or in connection with any amendments, modifications or
waivers of the provisions hereof (whether or not the transactions hereby or thereby
contemplated shall be consummated) or incurred by the Administrative Agent or any Lender
in connection with the enforcement or protection of its rights in connection with this
Agreement or in connection with the Loans made or Letters of Credit issued hereunder,
including the reasonable fees, charges and disbursements of Cravath, Swaine &
Moore LLP, counsel for the Administrative Agent, and, in connection with any such
enforcement or protection, the reasonable fees, charges and disbursements of any other
counsel for the Administrative Agent or any Lender. 

     (b)    
          The Borrower agrees to indemnify the Administrative Agent, each Lender, the
          Issuing Bank and each Related Party of any of the foregoing persons (each such
          person being called an “Indemnitee”) against, and to hold each
          Indemnitee harmless from, any and all losses, claims, damages, liabilities,
          penalties and related expenses, including reasonable counsel fees, charges and
          disbursements, incurred by or asserted against any Indemnitee (other than Taxes,
          Other Taxes or amounts that would be Other Taxes if imposed by the United States
          of America or any political subdivision thereof) arising out of, in any way
          connected with, or as a result of (i) the execution or delivery of this
          Agreement or any agreement or instrument contemplated thereby, the performance
          by the parties thereto of their respective obligations thereunder or the
          consummation of the Transactions and the other transactions contemplated
          thereby, (ii) the use of the proceeds of the Loans or issuance of Letters
          of Credit, or (iii) any claim, litigation, investigation or proceeding
          relating to any of the foregoing, whether or not 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,
          penalties or related expenses (x) are determined by a court of competent
          jurisdiction by final and nonappealable judgment (a “Final
          Judgment”) to have resulted from the gross negligence or wilful
          misconduct of such Indemnitee or (y) arise from any legal proceedings
          commenced against any Lender by any other Lender (other than legal proceedings
          against the Administrative Agent or the Issuing Bank in its capacity as such) or
          in which a Final Judgment is rendered in the Borrower’s favor against such
          Indemnitee. 

     (c)    
          To the extent that the Borrower fails to pay any amount required to be paid by
          it to the Administrative Agent or the Issuing Bank under paragraph (a) or (b) of
          this Section, each Lender severally agrees to pay to the Administrative Agent or
          the Issuing Bank, 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, penalty or related
          expense, as the case may be, was incurred by or asserted against the
          Administrative Agent or the Issuing Bank 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 Aggregate Revolving Credit Exposure,
          outstanding Term Loans and unused Commitments at the time. 

     (d)    
          To the extent permitted by applicable law, the Borrower shall not assert, and
          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 9.05 shall be payable not later than 15
          days after written demand therefor. 

SECTION 9.06. 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, except to the extent prohibited 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 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 9.06
are in addition to other rights and remedies (including other rights of setoff) which such
Lender may have. 

SECTION 9.07. Applicable Law.
THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE
OF NEW YORK. EACH LETTER OF CREDIT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED IN
ACCORDANCE WITH, THE LAWS OR RULES DESIGNATED IN SUCH LETTER OF CREDIT, OR IF NO SUCH LAWS
OR RULES ARE DESIGNATED, THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS MOST
RECENTLY PUBLISHED AND IN EFFECT, ON THE DATE SUCH LETTER OF CREDIT WAS ISSUED, BY THE
INTERNATIONAL CHAMBER OF COMMERCE (THE “UNIFORM CUSTOMS”) AND, AS TO MATTERS NOT
GOVERNED BY THE UNIFORM CUSTOMS, THE LAWS OF THE STATE OF NEW YORK. 

SECTION 9.08. Waivers;
Amendment. (a) No failure or delay of the Administrative Agent, any Lender or the
Issuing Bank 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, the Issuing Bank and the Lenders hereunder are cumulative and
are not exclusive of any rights or remedies that they would otherwise have. No waiver of
any provision of this Agreement or consent to any departure by the Borrower 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 Borrower in any case shall
entitle the Borrower to any other or further notice or demand in similar or other
circumstances. 

     (b)    
          Neither this Agreement nor any provision hereof may be waived, amended or
          modified except pursuant to an agreement or agreements in writing entered into
          by the Borrower and the Required Lenders; provided, however, that
          no such agreement shall (i) decrease the principal amount of, or
          extend the maturity of or any scheduled principal payment date or date for the
          payment of any interest on any Loan or any date for reimbursement of an L/C
          Disbursement, or waive or excuse any such payment or any part thereof, or
          decrease the rate of interest on any Loan or L/C Disbursement, without the prior
          written consent of each Lender affected thereby, (ii) increase or
          extend the Commitment or decrease or extend the date for payment of any Fees of
          any Lender without the prior written consent of such
          Lender, (iii) amend or modify the pro rata requirements of
          Section 2.17, the provisions of Section 9.04(j), the provisions of this
          Section 9.08 or the definition of the term “Required Lenders”, without
          the prior written consent of each Lender (iv) change the provisions of this
          Agreement in a manner that by its terms treats Lenders holding Loans of one
          Class differently and adversely from Lenders holding Loans of any other Class
          with respect to payments due without the prior written consent of  Lenders
          holding a majority in interest of the outstanding Loans and unused Commitments
          of each adversely affected Class or (v) modify the protections afforded to an
          SPC pursuant to the provisions of Section 9.04(i) without the written consent of
          such SPC; provided further that no such agreement shall amend, modify or
          otherwise affect the rights or duties of the Administrative Agent or the Issuing
          Bank hereunder without the prior written consent of the Administrative Agent or
          the Issuing Bank. 

SECTION 9.09. Interest Rate
Limitation. Notwithstanding anything herein to the contrary, if at any time the
interest rate applicable to any Loan or participation in any L/C Disbursement, together
with all fees, charges and other amounts which are treated as interest on such Loan or
participation in such L/C Disbursement 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 or participation in accordance with applicable law, the rate of
interest payable in respect of such Loan or participation 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 or participation but were not payable as a result of the operation of this
Section 9.09 shall be cumulated and the interest and Charges payable to such Lender
in respect of other Loans or participations 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 9.10. Entire
Agreement. This Agreement and the Fee Letter constitute the entire contract between
the parties relative to the subject matter hereof. Any other previous agreement among the
parties with respect to the subject matter hereof is superseded by this Agreement. Nothing
in this Agreement, expressed or implied, is intended to confer upon any person (other than
the parties hereto, their respective successors and assigns permitted hereunder (including
any Affiliate of the Issuing Bank that issues any Letter of Credit) and, to the extent
expressly contemplated hereby, the Related Parties of each of the Administrative Agent,
the Issuing Bank and the Lenders) any rights, remedies, obligations or liabilities under
or by reason of this Agreement. 

SECTION 9.11. 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. 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 9.11. 

SECTION 9.12. Severability. In
the event any one or more of the provisions contained in this Agreement 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 9.13. Counterparts.
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, and shall become effective as provided
in Section 9.03. Delivery of an executed signature page to this Agreement by
facsimile transmission shall be as effective as delivery of a manually signed counterpart
of this Agreement. 

SECTION 9.14. 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 are not to affect the construction of,
or to be taken into consideration in interpreting, this Agreement. 

SECTION 9.15. Jurisdiction;
Consent to Service of Process. (a) The Borrower 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 any action or proceeding
arising out of or relating to this Agreement, 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 shall affect any right that the
Administrative Agent, the Issuing Bank or any Lender may otherwise have to bring any
action or proceeding relating to this Agreement against the Borrower or its properties in
the courts of any jurisdiction. 

     (b)    
          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 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 Agreement irrevocably consents to service of process in the
          manner provided for notices in Section 9.01. Nothing in this Agreement will
          affect the right of any party to this Agreement to serve process in any other
          manner permitted by law. 

SECTION 9.16. 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’ officers, directors, employees and
agents, including accountants, legal counsel and other advisors who need to know such
Information in connection with its role as Administrative Agent, Issuing Bank or Lender
(as the case may be) hereunder (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 or quasi-regulatory authority (such as the National Association of
Insurance Commissioners) (provided that, to the extent permitted by applicable law
and practicable under the circumstances, such person will first inform the Borrower of any
such request), (c) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process (provided that, to the extent permitted by
applicable law, such person will promptly notify the Borrower of such requirement as far
in advance of its disclosure as is practicable to enable the Borrower to seek a protective
order and, to the extent practicable, such person will cooperate with the Borrower in
seeking any such order), (d) in connection with the exercise of any remedies hereunder or
any suit, action or proceeding relating to the enforcement of its rights hereunder,
(e) subject to an agreement containing provisions substantially the same as those of
this Section 9.16, to (i) any actual or 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 credit default swap or similar credit derivative
transaction relating to the obligations of the Borrower under this Agreement,
(f) with the consent of the Borrower or (g) to the extent such Information
becomes publicly available other than as a result of a breach of this Section 9.16.
For the purposes of this Section, “Information” shall mean all
information received from the Borrower and related to the Borrower or its business, other
than any such information that was available to the Administrative Agent, the Issuing Bank
or any Lender on a nonconfidential basis prior to its disclosure by the Borrower. Each of
the Administrative Agent, the Issuing Bank and the Lenders agrees that, except as
expressly provided in this Section 9.16, it will use Information only in connection with
its role as Administrative Agent, Issuing Bank or Lender (as the case may be) hereunder. 

SECTION 9.17. Termination of
Existing Credit Agreement. The Borrower and each of the Lenders that is also a Lender
(as defined in the Existing Credit Agreement) party to the Existing Credit Agreement agree
that the Commitments (as defined in such Existing Credit Agreement) shall be terminated in
their entirety on the Closing Date in accordance with the terms thereof, subject only to
this Section 9.17. Each of such Lenders waives (a) any requirement of notice of such
termination pursuant to the Existing Credit Agreement and (b) any claim to any facility
fees under the Existing Credit Agreement for any day on or after the Closing Date. The
Borrower (i) represents and warrants that (x) after giving effect to the preceding
sentences of this Section 9.17, the commitments under the Existing Credit Agreement will
be terminated effective not later than the Closing Date and (y) no loans will be, as of
the Closing Date, outstanding under the Existing Credit Agreement and (ii) covenants that
all accrued and unpaid facility fees and other amounts due and payable under the Existing
Credit Agreement shall have been paid on or prior to the Closing Date. 

SECTION 9.18. USA PATRIOT Act
Notice. Each Lender and the Administrative Agent (for itself and not on behalf of any
Lender) hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT
Act, it is required to obtain, verify and record information that identifies the Borrower,
which information includes the name and address of the Borrower and other information that
will allow such Lender or the Administrative Agent, as applicable, to identify the
Borrower in accordance with the USA PATRIOT Act. 

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

-------------------------------------------------------------------------------------------
LABORATORY CORPORATION OF
AMERICA HOLDINGS,
-------------------------------------------------------------------------------------------
by:
-------------------------------------------------------------------------------------------
Name:
------------------------------
Title:

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CREDIT SUISSE, CAYMAN ISLANDS BRANCH, individually and as Administrative Agent and Lender,
-------------------------------------------------------------------------------------------
by:
-------------------------------------------------------------------------------------------
Name:
------------------------------
Title:

-------------------------------------------------------------------------------------------
by:
-------------------------------------------------------------------------------------------
Name:
------------------------------
Title:

SIGNATURE  PAGE TO LABORATORY  CORPORATION OF AMERICA  HOLDINGS  CREDIT
AGREEMENT DATED AS OF THE DATE AND YEAR FIRST WRITTEN ABOVE

NAME OF LENDER:

by
Name:
Title:

SIGNATURE  PAGE TO LABORATORY  CORPORATION OF AMERICA  HOLDINGS  CREDIT
AGREEMENT DATED AS OF THE DATE AND YEAR FIRST WRITTEN ABOVE

NAME OF LENDER:

by
Name:
Title:

by
Name:
Title:
Name:
Title:

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