Document:

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                                                                    Exhibit 10.1

                                                        CONFORMED EXECUTION COPY

                             BRIDGE CREDIT AGREEMENT

                         DATED AS OF SEPTEMBER 12, 2003

                                      AMONG

                            PATTERSON DENTAL COMPANY,
                                 AS THE BORROWER

                  THE LENDERS FROM TIME TO TIME PARTIES HERETO

                         BANC ONE MEZZANINE CORPORATION,
                             AS ADMINISTRATIVE AGENT

                                       AND

                             BANK OF AMERICA, N.A.,
                              AS SYNDICATION AGENT

================================================================================

                       BANC ONE CAPITAL MARKETS, INC. AND
                         BANC OF AMERICA SECURITIES LLC,
                   AS CO-LEAD ARRANGERS AND JOINT BOOK RUNNERS

================================================================================

                         SIDLEY AUSTIN BROWN & WOOD LLP
                                 Bank One Plaza
                            10 South Dearborn Street
                             Chicago, Illinois 60603

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                                TABLE OF CONTENTS

ARTICLE I      DEFINITIONS.....................................................1
   1.1.        Certain Defined Terms...........................................1
   1.2.        Plural Forms...................................................17

ARTICLE II     THE CREDITS....................................................17
   2.1.        Loans..........................................................17
   2.2.        Required Payments; Termination.................................18
   2.3.        Ratable Loans; Types of Advances...............................19
   2.4.        Facility Fee...................................................19
   2.5.        Minimum Amount of Each Advance.................................19
   2.6.        Optional Principal Payments....................................19
   2.7.        Conversion and Continuation of Outstanding Advances; No
               Conversion or Continuation of Eurodollar Advances After
               Default........................................................20
   2.8.        Changes in Interest Rate, etc..................................20
   2.9.        Rates Applicable After Default.................................21
   2.10.       Method of Payment..............................................21
   2.11.       Noteless Agreement; Evidence of Indebtedness...................21
   2.12.       Telephonic Notices.............................................22
   2.13.       Interest Payment Dates; Interest and Fee Basis.................22
   2.14.       Notification of Advances, Interest Rates and Prepayments;
               Availability of Loans..........................................23
   2.15.       Lending Installations..........................................23
   2.16.       Non-Receipt of Funds by the Agent..............................23
   2.17.       Replacement of Lender..........................................23

ARTICLE III    YIELD PROTECTION; TAXES........................................24
   3.1.        Yield Protection...............................................24
   3.2.        Changes in Capital Adequacy Regulations........................25
   3.3.        Availability of Types of Advances..............................25
   3.4.        Funding Indemnification........................................25
   3.5.        Taxes..........................................................26
   3.6.        Lender Statements; Survival of Indemnity.......................28
   3.7.        Alternative Lending Installation...............................28

ARTICLE IV     CONDITIONS PRECEDENT...........................................28
   4.1.        Effectiveness of Commitments...................................28
   4.2.        Initial Credit Extension.......................................31

ARTICLE V      REPRESENTATIONS AND WARRANTIES.................................31
   5.1.        Existence and Standing.........................................31
   5.2.        Authorization and Validity.....................................31
   5.3.        No Conflict; Government Consent................................32
   5.4.        Financial Statements...........................................32

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   5.5.        Material Adverse Change........................................32
   5.6.        Taxes..........................................................33
   5.7.        Litigation and Contingent Obligations..........................33
   5.8.        Subsidiaries...................................................33
   5.9.        ERISA..........................................................33
   5.10.       Accuracy of Information........................................33
   5.11.       Regulation U...................................................34
   5.12.       Material Agreements............................................34
   5.13.       Compliance With Laws...........................................34
   5.14.       Ownership of Properties........................................34
   5.15.       Plan Assets; Prohibited Transactions...........................34
   5.16.       Environmental Matters..........................................34
   5.17.       Investment Company Act.........................................35
   5.18.       Public Utility Holding Company Act.............................35
   5.19.       Insurance......................................................35
   5.20.       Solvency.......................................................35
   5.21.       No Default or Unmatured Default................................35
   5.22.       Reportable Transaction.........................................35
   5.23.       Post-Retirement Benefits.......................................35
   5.24.       AbilityOne Acquisition.........................................35

ARTICLE VI     COVENANTS......................................................36
   6.1.        Financial Reporting............................................36
   6.2.        Use of Proceeds................................................38
   6.3.        Notice of Default..............................................38
   6.4.        Conduct of Business............................................38
   6.5.        Taxes..........................................................38
   6.6.        Insurance......................................................38
   6.7.        Compliance with Laws...........................................39
   6.8.        Maintenance of Properties......................................39
   6.9.        Inspection; Keeping of Books and Records.......................39
   6.10.       Dividends......................................................39
   6.11.       Merger.........................................................39
   6.12.       Sale of Assets.................................................40
   6.13.       Investments and Acquisitions...................................40
   6.14.       Indebtedness...................................................43
   6.15.       Liens..........................................................44
   6.16.       Affiliates.....................................................46
   6.17.       Financial Contracts............................................47
   6.18.       Subsidiary Covenants...........................................47
   6.19.       Contingent Obligations.........................................47
   6.20.       Leverage Ratio.................................................47
   6.21.       Interest Expense Coverage Ratio................................48
   6.22.       Minimum Consolidated Net Worth.................................48
   6.23.       Additional Subsidiary Guarantors...............................48
   6.24.       Foreign Subsidiary Investments.................................48
   6.25.       Subordinated Indebtedness......................................48

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   6.26.       Sale of Accounts...............................................48

ARTICLE VII    DEFAULTS.......................................................49

ARTICLE VIII   ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES.................52
   8.1.        Acceleration...................................................52
   8.2.        Amendments.....................................................52
   8.3.        Preservation of Rights.........................................53

ARTICLE IX     GENERAL PROVISIONS.............................................53
   9.1.        Survival of Representations....................................53
   9.2.        Governmental Regulation........................................53
   9.3.        Headings.......................................................53
   9.4.        Entire Agreement...............................................53
   9.5.        Several Obligations; Benefits of this Agreement................53
   9.6.        Expenses; Indemnification......................................54
   9.7.        Numbers of Documents...........................................55
   9.8.        Accounting.....................................................55
   9.9.        Severability of Provisions.....................................55
   9.10.       Nonliability of Lenders........................................55
   9.11.       Confidentiality................................................56
   9.12.       Lenders Not Utilizing Plan Assets..............................56
   9.13.       Nonreliance....................................................56
   9.14.       Disclosure.....................................................57
   9.15.       Performance of Obligations.....................................57

ARTICLE X      THE AGENT......................................................57
   10.1.       Appointment; Nature of Relationship............................57
   10.2.       Powers.........................................................58
   10.3.       General Immunity...............................................58
   10.4.       No Responsibility for Loans, Recitals, etc.....................58
   10.5.       Action on Instructions of Lenders..............................58
   10.6.       Employment of Agents and Counsel...............................59
   10.7.       Reliance on Documents; Counsel.................................59
   10.8.       Agent's Reimbursement and Indemnification......................59
   10.9.       Notice of Default..............................................60
   10.10.      Rights as a Lender.............................................60
   10.11.      Lender Credit Decision.........................................60
   10.12.      Successor Agent................................................60
   10.13.      Agent and Arranger Fees........................................61
   10.14.      Delegation to Affiliates.......................................61
   10.15.      No Duties Imposed on Syndication Agents, Documentation Agents
               or Arrangers...................................................61

ARTICLE XI     SETOFF; RATABLE PAYMENTS.......................................62
   11.1.       Setoff.........................................................62
   11.2.       Ratable Payments...............................................62

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ARTICLE XII    BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS..............62
   12.1.       Successors and Assigns; Designated Lenders.....................62
   12.2.       Participations.................................................64
   12.3.       Assignments....................................................65
   12.4.       Dissemination of Information...................................67
   12.5.       Tax Certifications.............................................67

ARTICLE XIII   NOTICES........................................................67
   13.1.       Notices; Effectiveness; Electronic Communication...............67
   13.2.       Change of Address, Etc.........................................68

ARTICLE XIV    COUNTERPARTS; INTEGRATION; EFFECTIVENESS; ELECTRONIC
               EXECUTION......................................................68
   14.1.       Counterparts; Effectiveness....................................68
   14.2.       Electronic Execution of Assignments............................68

ARTICLE XV     CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL...69
   15.1        CHOICE OF LAW..................................................69
   15.2        CONSENT TO JURISDICTION........................................69
   15.3        WAIVER OF JURY TRIAL...........................................69

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                                    SCHEDULES

Commitment Schedule

Pricing Schedule

Schedule 5.8  - Subsidiaries

Schedule 6.13 - Investments

Schedule 6.14 - Indebtedness

Schedule 6.15 - Liens

                                    EXHIBITS

Exhibit A     - Form of the Credit Parties' Counsel's Opinion

Exhibit B     - Form of Compliance Certificate

Exhibit C     - Form of Assignment and Assumption Agreement

Exhibit D     - Form of Loan/Credit Related Money Transfer Instruction

Exhibit E     - Form of Promissory Note (if requested)

Exhibit F     - Form of Designation Agreement

Exhibit G     - List of Closing Documents

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                             BRIDGE CREDIT AGREEMENT

     This Bridge Credit Agreement, dated as of September 12, 2003, is entered
into by and among Patterson Dental Company, a Minnesota corporation, as the
Borrower, the Lenders and Banc One Mezzanine Corporation, as Administrative
Agent. The parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

     1.1. Certain Defined Terms. As used in this Agreement:

     "AbilityOne" means AbilityOne Products Corp., a Delaware corporation.

     "AbilityOne Acquisition" means the acquisition by the Borrower or a
Subsidiary or Subsidiaries of the Borrower of all of the capital stock of
AbilityOne on the terms and conditions set forth in the AbilityOne Acquisition
Agreement.

     "AbilityOne Acquisition Agreement" means that certain Agreement and Plan of
Merger dated as of August 15, 2003 by and among the Borrower, RETEP, Inc.,
AbilityOne Products Corp., and AbilityOne II, L.L.C., as representative of the
company stockholders, as in effect on the Closing Date and without giving effect
to any subsequent amendment or modification thereto.

     "AbilityOne Corporation" means AbilityOne Corporation, a Michigan
corporation.

     "Accounting Changes" is defined in Section 9.8 hereof.

     "Accounts" means the Borrower's or a Subsidiary's right to the payment of
money from the sale, lease or other disposition of goods or other assets by the
Borrower or a Subsidiary, a rendering of services by the Borrower or a
Subsidiary, a loan by the Borrower or a Subsidiary, the overpayment of taxes or
other liabilities of the Borrower, or otherwise, however such right to payment
may be evidenced, together with all other rights and interests (including all
liens and security interests) that the Borrower or Subsidiary may at any time
have against any account debtor or other party obligated thereon or against any
of the property of such account debtor or other party.

     "Acquisition" means any transaction, or any series of related transactions,
consummated on or after the Closing Date, by which the Borrower or any of its
Subsidiaries (i) acquires any going concern business or all or substantially all
of the assets of any Person, or division thereof, whether through purchase of
assets, merger or otherwise or (ii) directly or indirectly acquires from one or
more Persons (in one transaction or as the most recent transaction in a series
of transactions) at least a majority (in number of votes) of the securities of a
corporation which have ordinary voting power for the election of directors
(other than securities having such power only by reason of the happening of a
contingency) or a majority (by percentage of voting power) of the outstanding
ownership interests of a partnership or limited liability company of any Person.

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     "Advance" means a borrowing hereunder consisting of the aggregate amount of
several Loans (i) made by some or all of the Lenders on the same date, or (ii)
converted or continued by the Lenders on the same date of conversion or
continuation, consisting, in either case, of the aggregate amount of the several
Loans of the same Type and, in the case of Eurodollar Loans, for the same
Interest Period.

     "Affiliate" of any Person means any other Person directly or indirectly
controlling, controlled by or under common control with such Person. A Person
shall be deemed to control another Person if the controlling Person is the
"beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange Act
of 1934) of 10% or more of any class of voting securities (or other ownership
interests) of the controlled Person or possesses, directly or indirectly, the
power to direct or cause the direction of the management or policies of the
controlled Person, whether through ownership of voting securities, by contract
or otherwise.

     "Agent" means BOMC in its capacity as contractual representative of the
Lenders pursuant to Article X, and not in its individual capacity as a Lender,
as Administrative Agent, and any successor Agent appointed pursuant to Article
X.

     "Aggregate Commitment" means the aggregate of the Commitments of all the
Lenders. The initial Aggregate Commitment as of the Closing Date is Six Hundred
Million and 00/100 Dollars ($600,000,000). After giving effect to the initial
Advance hereunder on the Funding Date, any unused portion of the Aggregate
Commitment shall terminate and be of no further force or effect.

     "Aggregate Outstanding Credit Exposure" means, at any time, the aggregate
of the Outstanding Credit Exposure of all the Lenders.

     "Agreement" means this Bridge Credit Agreement, as it may be amended,
restated, supplemented or otherwise modified and as in effect from time to time.

     "Agreement Accounting Principles" means generally accepted accounting
principles as in effect in the United States from time to time, applied in a
manner consistent with that used in preparing the financial statements of the
Borrower referred to in Section 5.4; provided, however, that except as provided
in Section 9.8, with respect to the calculation of the financial covenants set
forth in Sections 6.20, 6.21 and 6.22 (and the defined terms used in such
Sections), "Agreement Accounting Principles" means generally accepted accounting
principles as in effect in the United States as of the Closing Date, applied in
a manner consistent with that used in preparing the financial statements of the
Borrower referred to in Section 5.4 hereof.

     "Alternate Base Rate" means, for any day, a fluctuating rate of interest
per annum equal to the higher of (i) the Prime Rate for such day and (ii) the
sum of (a) the Federal Funds Effective Rate for such day and (b) one-half of one
percent (0.5% ) per annum.

     "Applicable Fee Rate" means, with respect to the Facility Fee at any time,
the percentage rate per annum which is applicable at such time with respect to
such fee as set forth in the Pricing Schedule.

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     "Applicable Margin" means, with respect to Advances of any Type at any
time, the percentage rate per annum which is applicable at such time with
respect to Advances of such Type as set forth in the Pricing Schedule.

     "Approved Fund" means any Fund that is administered or managed by (i) a
Lender, (ii) an Affiliate of a Lender or (iii) an entity or an Affiliate of an
entity that administers or manages a Lender.

     "Arrangers" means, collectively, Banc One Capital Markets, Inc., a Delaware
corporation, and its successors, and Banc of America Securities LLC, and its
successors, in their capacities as Co-Lead Arrangers and Joint Book Runners.

     "Article" means an article of this Agreement unless another document is
specifically referenced.

     "Assignment Agreement" is defined in Section 12.3.1.

     "Authorized Officer" means any of the chief executive officer, president,
chief operating officer, chief financial officer, treasurer or assistant
treasurer of the Borrower, acting singly.

     "BOMC" means Banc One Mezzanine Corporation, in its individual capacity,
and its successors.

     "Borrower" means Patterson Dental Company, a Minnesota corporation, and its
permitted successors and assigns (including, without limitation, a debtor in
possession on its behalf).

     "Borrowing Notice" is defined in Section 2.1.2.

     "Business Day" means (i) with respect to any borrowing, payment or rate
selection of Eurodollar Advances, a day (other than a Saturday or Sunday) on
which banks generally are open in Chicago, Illinois for the conduct of
substantially all of their commercial lending activities, interbank wire
transfers can be made on the Fedwire system and dealings in Dollars are carried
on in the London interbank market and (ii) for all other purposes, a day (other
than a Saturday or Sunday) on which banks generally are open in Chicago,
Illinois for the conduct of substantially all of their commercial lending
activities and interbank wire transfers can be made on the Fedwire system.

     "Capitalized Lease" of a Person means any lease of Property by such Person
as lessee which would be capitalized on a balance sheet of such Person prepared
in accordance with Agreement Accounting Principles.

     "Capitalized Lease Obligations" of a Person means the amount of the
obligations of such Person under Capitalized Leases which would be shown as a
liability on a balance sheet of such Person prepared in accordance with
Agreement Accounting Principles.

     "Cash Equivalent Investments" means (i) short-term obligations of, or fully
guaranteed by, the United States of America, (ii) commercial paper rated A-1 or
better by S&P or P-1 or

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better by Moody's, (iii) demand deposit accounts maintained in the ordinary
course of business, (iv) certificates of deposit issued by and time deposits
with commercial banks (whether domestic or foreign) having capital and surplus
in excess of $100,000,000, and (v) money market funds investing primarily in
assets of the type described in clauses (i) and (ii) of this definition;
provided in each case that the same provides for payment of both principal and
interest (and not principal alone or interest alone) and is not subject to any
contingency regarding the payment of principal or interest.

     "Change in Control" means (i) the acquisition by any Person, or two or more
Persons acting in concert, of beneficial ownership (within the meaning of Rule
13d-3 of the SEC under the Securities Exchange Act of 1934) of 30% or more of
the outstanding shares of voting stock of the Borrower; (ii) other than pursuant
to a transaction otherwise permitted under this Agreement, the Borrower shall
cease to own, directly or indirectly and free and clear of all Liens or other
encumbrances, all of the outstanding shares of voting stock of the Guarantors on
a fully diluted basis; or (iii) the majority of the Board of Directors of the
Borrower fails to consist of Continuing Directors.

     "Closing Date" means September 12, 2003

     "Code" means the Internal Revenue Code of 1986, as amended, reformed or
otherwise modified from time to time, and any rule or regulation issued
thereunder.

     "Commitment" means, for each Lender, such Lender's obligation to make Loans
on the Funding Date to the Borrower in an aggregate amount not exceeding the
amount set forth for such Lender on the Commitment Schedule.

     "Commitment Schedule" means the Schedule identifying each Lender's
Commitment as of the Closing Date attached hereto and identified as such.

     "Consolidated Adjusted EBITDA" means, as to any Person for any period, the
sum of Consolidated EBIT for such period plus consolidated depreciation and
amortization for such period. For Persons acquired by the Borrower or any
Subsidiary during the relevant measurement period, their EBITDA results will be
included in the calculation of Consolidated Adjusted EBITDA as if those Persons
were owned by the Borrower or such Subsidiary for the entire reporting period.
Consolidated Adjusted EBITDA will be calculated on a rolling four-quarter basis.

     "Consolidated Adjusted Net Income" means, as to any Person for any period,
the Consolidated Net Income of such Person, provided that, for Persons acquired
by the Borrower or any Subsidiary during the relevant measurement period, their
Consolidated Net Income will be included in the calculation of Consolidated
Adjusted Net Income as if those Persons were owned by the Borrower or such
Subsidiary for the entire reporting period. Consolidated Adjusted Net Income
will be calculated on a rolling four-quarter basis.

     "Consolidated EBIT" means, as to any Person and with reference to any
period, Consolidated Net Income plus, to the extent deducted from revenues in
determining Consolidated Net Income, (i) Consolidated Interest Expense, and (ii)
expense for federal, state,

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local and foreign income and franchise taxes paid or accrued, all calculated for
such Person and its Subsidiaries on a consolidated basis.

     "Consolidated Interest Expense" means, as to any Person and with reference
to any period, the interest expense of such Person and its Subsidiaries
calculated on a consolidated basis for such period including, without
limitation, such interest expense as may be attributable to capitalized leases,
receivables transaction financing costs, the discount or implied interest
component of off-balance sheet liabilities, all commissions, discounts and other
fees and charges owed with respect to Letters of Credit and net mark-to-market
exposure.

     "Consolidated Net Income" means as to any Person and with reference to any
period, the net income (or loss) of such Person and its Subsidiaries calculated
on a consolidated basis for such period, excluding any non-cash charges or gains
which are unusual, non-recurring or extraordinary.

     "Consolidated Net Worth" means, as of any date of determination, the
consolidated total stockholders' equity (including capital stock, additional
paid-in capital and retained earnings) of the Borrower and its Subsidiaries
determined in accordance with Agreement Accounting Principles.

     "Consolidated Total Debt" means (i) all indebtedness of the Borrower and
its Subsidiaries, on a consolidated basis, reflected on a balance sheet prepared
in accordance with Agreement Accounting Principles, plus, without duplication
(ii) the face amount of all outstanding Letters of Credit in respect of which
the Borrower or any Subsidiary has any reimbursement obligation and the
principal amount of all Contingent Obligations of the Borrower and its
Subsidiaries, plus Capitalized Lease Obligations, plus obligations arising from
the sale of accounts receivable and other forms of off-balance sheet financing,
including Off-Balance Sheet Liabilities.

     "Contingent Obligation" of a Person means any agreement, undertaking or
arrangement by which such Person assumes, guarantees, endorses, contingently
agrees to purchase or provide funds for the payment of, or otherwise becomes or
is contingently liable upon, the obligation or liability of any other Person, or
agrees to maintain the net worth or working capital or other financial condition
of any other Person, or otherwise assures any creditor of such other Person
against loss, including, without limitation, any comfort letter, operating
agreement, take-or-pay contract, application for a Letter of Credit or the
obligations of any such Person as general partner of a partnership with respect
to the liabilities of the partnership.

     "Continuing Director" means, with respect to any Person as of any date of
determination, any member of the board of directors of such Person who (i) was a
member of such board of directors on the Closing Date, or (ii) was nominated for
election or elected to such board of directors with the approval of the required
majority of the Continuing Directors who were members of such board at the time
of such nomination or election; provided that if any individual who is so
elected or nominated in connection with a merger, consolidation, acquisition or
similar transaction and who was not a Continuing Director prior thereto,
together with all other individuals so elected or nominated in connection with
such merger, consolidation, acquisition or similar transaction who were not
Continuing Directors prior thereto, constitute a majority of the

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members of the board of directors of such Person, such individual shall not be a
Continuing Director.

     "Controlled Group" means all members of a controlled group of corporations
or other business entities and all trades or businesses (whether or not
incorporated) under common control which, together with the Borrower or any of
its Subsidiaries, are treated as a single employer under Section 414 of the
Code.

     "Conversion/Continuation Notice" is defined in Section 2.7.

     "Credit Extension" means the making of an Advance hereunder.

     "Credit Party" means, collectively, the Borrower and each of the
Guarantors.

     "Default" means an event described in Article VII.

     "Designated Lender" means, with respect to each Designating Lender, each
Eligible Designee designated by such Designating Lender pursuant to Section
12.1.2.

     "Designating Lender" means, with respect to each Designated Lender, the
Lender that designated such Designated Lender pursuant to Section 12.1.2.

     "Designation Agreement" is defined in Section 12.1.2.

     "Disqualified Stock" means any preferred or other capital stock that, by
its terms (or by the terms of any security into which it is convertible or for
which it is exchangeable), or upon the happening of any event, matures or is
mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or
redeemable at the option of the holder thereof, in whole or in part, on or prior
to the date that is ninety-one (91) days after the Facility Termination Date.

     "Dollar", "dollar" and "$" means the lawful currency of the United States
of America.

     "Domestic Subsidiary" means any Subsidiary of any Person that is not a
Foreign Subsidiary.

     "Eligible Designee" means a special purpose corporation, partnership,
trust, limited partnership or limited liability company that is administered by
the respective Designating Lender or an Affiliate of such Designating Lender and
(i) is organized under the laws of the United States of America or any state
thereof, (ii) is engaged primarily in making, purchasing or otherwise investing
in commercial loans in the ordinary course of its business and (iii) issues (or
the parent of which issues) commercial paper rated at least A-1 or the
equivalent thereof by S&P or P-1 or the equivalent thereof by Moody's.

     "Environmental Laws" means any and all applicable federal, state, local and
foreign statutes, laws, judicial decisions, regulations, ordinances, rules,
judgments, orders, decrees, plans, injunctions, permits, concessions, grants,
franchises, licenses, agreements and other governmental restrictions relating to
(i) the protection of the environment, (ii) the effect of the environment on
human health, (iii) emissions, discharges or releases of pollutants,
contaminants,

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hazardous substances or wastes into surface water, ground water or land, or (iv)
the manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of pollutants, contaminants, hazardous substances or
wastes or the clean-up or other remediation thereof.

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and any rules or regulations promulgated thereunder.

     "Eurodollar Advance" means an Advance which, except as otherwise provided
in Section 2.9, bears interest at the applicable Eurodollar Rate.

     "Eurodollar Base Rate" means, with respect to a Eurodollar Advance for the
relevant Interest Period, the applicable British Bankers' Association LIBOR rate
for deposits in Dollars as reported by any generally recognized financial
information service as of 11:00 a.m. (London time) two (2) Business Days prior
to the first day of such Interest Period, and having a maturity equal to such
Interest Period, provided that, if no such British Bankers' Association LIBOR
rate is available to the Agent, the applicable Eurodollar Base Rate for the
relevant Interest Period shall instead be the rate determined by the Agent to be
the rate at which BOMC or one of its affiliate banks offers to place deposits in
Dollars with first-class banks in the London interbank market at approximately
11:00 a.m. (London time) two (2) Business Days prior to the first day of such
Interest Period, in the approximate amount of BOMC's relevant Eurodollar Loan
and having a maturity equal to such Interest Period.

     "Eurodollar Loan" means a Loan which, except as otherwise provided in
Section 2.9, bears interest at the applicable Eurodollar Rate.

     "Eurodollar Rate" means, with respect to a Eurodollar Advance for the
relevant Interest Period, the sum of (i) the quotient of (a) the Eurodollar Base
Rate applicable to such Interest Period, divided by (b) one minus the Reserve
Requirement (expressed as a decimal) applicable to such Interest Period, plus
(ii) the then Applicable Margin, changing as and when the Applicable Margin
changes.

     "Excluded Taxes" means, in the case of each Lender or applicable Lending
Installation and the Agent, taxes imposed on its overall net income, and
franchise taxes imposed on it, by (i) the jurisdiction under the laws of which
such Lender or the Agent is incorporated or organized or any political
combination or subdivision or taxing authority thereof or (ii) the jurisdiction
in which the Agent's or such Lender's principal executive office or such
Lender's applicable Lending Installation is located.

     "Exhibit" refers to an exhibit to this Agreement, unless another document
is specifically referenced.

     "Existing Credit Agreements" means (i) that certain Credit Agreement, dated
as of November 22, 2002, by and among the Borrower, the lenders parties thereto,
Banc One Capital Markets, Inc., as lead arranger, and Bank One, NA, as agent, as
the same has been amended, restated, supplemented or otherwise modified from
time to time, and (ii) that certain Credit Agreement, dated as of March 27,
2002, among AbilityOne Corporation, certain of its subsidiaries party thereto,
the lenders party thereto, Wachovia Bank, National Association, as
administrative agent, Antares Capital Corporation, Bank of America, N.A.,
Madison Capital

                                       7

<PAGE>

Funding LLC and BNP Paribas, as the same has been amended, restated,
supplemented or otherwise modified from time to time.

     "Facility Fee" is defined in Section 2.4.

     "Facility Termination Date" means the earlier of (a) March 12, 2004, (b)
September 19, 2003 if the AbilityOne Acquisition has not occurred prior thereto,
and (c) the date the Loans shall be required to be paid in full pursuant to
Section 8.1 hereof.

     "Federal Funds Effective Rate" means, for any day, an interest rate per
annum equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published for such day (or, if such day is not a
Business Day, for the immediately preceding Business Day) by the Federal Reserve
Bank of New York, or, if such rate is not so published for any day which is a
Business Day, the average of the quotations at approximately 10:00 a.m. (Chicago
time) on such day on such transactions received by the Agent from three (3)
Federal funds brokers of recognized standing selected by the Agent in its sole
discretion.

     "Financing" means, with respect to any Person, (i) the issuance or sale by
such Person of any equity interests in such Person, or (ii) the issuance,
assumption, incurrence or sale by such Person of any Indebtedness (other than
Indebtedness described in Sections 6.14.1 through 6.14.10, but including any
replacement, renewal, refinancing or extension of any Indebtedness permitted
under Section 6.14.2); provided, however, that the foregoing shall not permit
the incurrence by the Borrower or any Subsidiary of any Indebtedness if such
incurrence is not otherwise permitted by this Agreement.

     "Floating Rate" means, for any day, a rate per annum equal to the sum of
(i) the Alternate Base Rate for such day, changing when and as the Alternate
Base Rate changes plus (ii) the then Applicable Margin, changing as and when the
Applicable Margin changes.

     "Floating Rate Advance" means an Advance which, except as otherwise
provided in Section 2.9, bears interest at the Floating Rate.

     "Floating Rate Loan" means a Loan which, except as otherwise provided in
Section 2.9, bears interest at the Floating Rate.

     "Foreign Subsidiary" means (i) any Subsidiary of any Person that is not
organized under the laws of a jurisdiction located in the United States of
America and (ii) any Subsidiary of a Person described in clause (i) hereof that
is organized under the laws of a jurisdiction located in the United States of
America.

     "Foreign Subsidiary Investment" means the sum, without duplication, of (i)
the aggregate outstanding principal amount of all intercompany loans made on or
after the Closing Date from any Credit Party to any Foreign Subsidiary; (ii) all
outstanding Investments made on or after the Closing Date by any Credit Party in
any Foreign Subsidiary; and (iii) an amount equal to the net benefit derived by
the Foreign Subsidiaries resulting from any non-arm's-length transactions, or
any other transfer of assets conducted, in each case entered into on or after
the Closing Date, between any Credit Party, on the one hand, and such Foreign
Subsidiaries, on the other hand,

                                       8

<PAGE>

other than (a) transactions in the ordinary course of business, (b) in respect
of legal, accounting, reporting, listing and similar administrative services
provided by any Credit Party to any such Foreign Subsidiary in the ordinary
course of business consistent with past practice, and (c) the AbilityOne
Acquisition.

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

     "Funding Date" means a date on which the initial Advance is made hereunder.

     "Guarantor" means each of the Borrower's Material Domestic Subsidiaries
(other than any SPV) and all other Material Domestic Subsidiaries of the
Borrower which become Guarantors in satisfaction of the provisions of Section
6.23, in each case, together with their respective permitted successors and
assigns. The initial Guarantors are AbilityOne Corporation, AbilityOne, PDSI and
Webster.

     "Guaranty" means the Guaranty, dated as of September 12, 2003, made by
certain Subsidiaries of the Borrower in favor of the Agent for the benefit of
the Lenders, as the same may be amended, restated, supplemented or otherwise
modified from time to time.

     "Indebtedness" of a Person means, at any time, without duplication, such
Person's (i) obligations for borrowed money, (ii) obligations representing the
deferred purchase price of Property or services (other than current accounts
payable arising in the ordinary course of such Person's business payable on
terms customary in the trade), (iii) obligations, whether or not assumed,
secured by Liens or payable out of the proceeds or production from Property now
or hereafter owned or acquired by such Person, (iv) obligations which are
evidenced by notes, bonds, debentures, acceptances, or other instruments, (v)
obligations to purchase securities or other Property arising out of or in
connection with the sale of the same or substantially similar securities or
Property, (vi) Capitalized Lease Obligations, (vii) Contingent Obligations of
such Person, (viii) reimbursement obligations under letters of credit, bankers'
acceptances, surety bonds and similar instruments (ix) Off-Balance Sheet
Liabilities, (x) obligations under Sale and Leaseback Transactions, (xi) Net
Mark-to-Market Exposure under Rate Management Transactions, (xii) Disqualified
Stock, and (xiii) any other obligation for borrowed money or other financial
accommodation which in accordance with Agreement Accounting Principles would be
shown as a liability on the consolidated balance sheet of such Person.

     "Interest Expense Coverage Ratio" is defined in Section 6.21.

     "Interest Period" means, with respect to a Eurodollar Advance, a period of
one, two, three or six months, or, to the extent available to all of the
Lenders, nine or twelve months, commencing on a Business Day selected by the
Borrower pursuant to this Agreement. Such Interest Period shall end on but
exclude the day which corresponds numerically to such date one, two, three or
six months, or if applicable nine or twelve months, thereafter, provided,
however, that if there is no such numerically corresponding day in such next,
second, third, sixth, ninth or twelfth succeeding month, such Interest Period
shall end on the last Business Day of such next, second, third, sixth, ninth or
twelfth succeeding month. If an Interest Period would otherwise

                                       9

<PAGE>

end on a day which is not a Business Day, such Interest Period shall end on the
next succeeding Business Day, provided, however, that if said next succeeding
Business Day falls in a new calendar month, such Interest Period shall end on
the immediately preceding Business Day.

     "Investment" of a Person means any loan, advance (other than commission,
travel, relocation and similar advances to directors, officers and employees
made in the ordinary course of business), extension of credit (other than
accounts receivable arising in the ordinary course of business on terms
customary in the trade) or contribution of capital by such Person; stocks,
bonds, mutual funds, partnership interests, notes, debentures or other
securities owned by such Person; any deposit accounts and certificates of
deposit owned by such Person; and structured notes, derivative financial
instruments and other similar instruments or contracts owned by such Person.

     "Lenders" means the lending institutions listed on the signature pages of
this Agreement and their respective successors and assigns.

     "Lending Installation" means, with respect to a Lender or the Agent, the
office, branch, subsidiary or affiliate of such Lender or the Agent listed on
the signature pages hereof or on the administrative information sheets provided
to the Agent in connection herewith or on a Schedule or otherwise selected by
such Lender or the Agent pursuant to Section 2.15.

     "Letter of Credit" of a Person means a letter of credit or similar
instrument which is issued upon the application of such Person or upon which
such Person is an account party or for which such Person is in any way liable.

     "Leverage Ratio" means, as the end of any of the Borrower's fiscal
quarters, the ratio of Consolidated Total Debt as of the end of such fiscal
quarter to Consolidated Adjusted EBITDA for the four consecutive fiscal quarters
then ended; provided, that the Leverage Ratio shall be calculated, with respect
to Permitted Acquisitions, on a pro forma basis using historical financial
statements and containing reasonable adjustments satisfactory to the Agent,
broken down by fiscal quarter in the Borrower's reasonable judgment.

     "Lien" means any lien (statutory or other), mortgage, pledge,
hypothecation, assignment, deposit arrangement, encumbrance or preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever (including, without limitation, the interest of a vendor or
lessor under any conditional sale, Capitalized Lease or other title retention
agreement, and, in the case of stock, stockholders agreements, voting trust
agreements and all similar arrangements).

     "Loan" means, with respect to a Lender, such Lender's loan made pursuant to
Article II (or any conversion or continuation thereof).

     "Loan Documents" means this Agreement, the Guaranty, and all other
documents, instruments, notes (including any Notes issued pursuant to Section
2.11 (if requested)) and agreements executed in connection herewith or therewith
or contemplated hereby or thereby, as the same may be amended, restated or
otherwise modified and in effect from time to time.

                                       10

<PAGE>

     "Material Adverse Effect" means a material adverse effect on (i) the
business, Property, condition (financial or otherwise), operations or results of
operations, performance or prospects of the Borrower and its Subsidiaries taken
as a whole, (ii) the ability of the Borrower or any Subsidiary to perform its
obligations under the Loan Documents, (iii) the validity or enforceability of
any of the Loan Documents or (iv) the rights or remedies of the Agent or the
Lenders under any of the Loan Documents.

     "Material Domestic Subsidiary" means (i) PDSI and Webster, and (ii) any
other Domestic Subsidiary of the Borrower (other than an SPV) that meets one or
both of the following criteria: (i) such Domestic Subsidiary's total assets,
determined on a consolidated basis with its Subsidiaries is greater than or
equal to fifteen percent (15%) of the consolidated total assets of the Borrower
and its Subsidiaries; or (ii) such Domestic Subsidiary's Consolidated Adjusted
Net Income is greater than or equal to fifteen percent (15%) of the Borrower's
Consolidated Adjusted Net Income, in each case as reported in the most recent
annual or quarterly financial statements of the Borrower delivered pursuant to
Section 6.1.1 or 6.1.2.

     "Material Indebtedness" means any Indebtedness in an outstanding principal
amount of $10,000,000 or more in the aggregate (or the equivalent thereof in any
currency other than Dollars).

     "Material Indebtedness Agreement" means any agreement under which any
Material Indebtedness was created or is governed or which provides for the
incurrence of Indebtedness in an amount which would constitute Material
Indebtedness (whether or not an amount of Indebtedness constituting Material
Indebtedness is outstanding thereunder).

     "Moody's" means Moody's Investors Service, Inc. and any successor thereto.

     "Multiemployer Plan" means a multiemployer plan, as defined in Section
4001(a)(3) of ERISA, which is covered by Title IV of ERISA and to which the
Borrower or any member of the Controlled Group is obligated to make
contributions.

     "Net Cash Proceeds" means, with respect to any sale of Property or any
Financing by any Person, (a) cash (freely convertible into Dollars) received by
such Person or any Subsidiary of such Person from such sale of Property
(including cash received as consideration for the assumption or incurrence of
liabilities incurred in connection with or in anticipation of such sale of
Property) or Financing, after (i) provision for all income or other taxes
measured by or resulting from such sale of Property, (ii) payment of all
reasonable brokerage commissions and other fees and expenses related to such
sale of Property or Financing, and (iii) all amounts used to repay Indebtedness
secured by a Lien on any asset disposed of in such sale of Property which is or
may be required (by the express terms of the instrument governing such
Indebtedness) to be repaid in connection with such sale of Property (including
payments made to obtain or avoid the need for the consent of any holder of such
Indebtedness) or Financing.

     "Net Mark-to-Market Exposure" of a Person means, as of any date of
determination, the excess (if any) of all unrealized losses over all unrealized
profits of such Person arising from Rate Management Transactions. "Unrealized
losses" means the fair market value of the cost to such Person of replacing such
Rate Management Transaction as of the date of determination

                                       11

<PAGE>

(assuming the Rate Management Transaction were to be terminated as of that
date), and "unrealized profits" means the fair market value of the gain to such
Person of replacing such Rate Management Transaction as of the date of
determination (assuming such Rate Management Transaction were to be terminated
as of that date).

     "Non-U.S. Lender" is defined in Section 3.5(iv).

     "Note" is defined in Section 2.11.

     "Obligations" means all Loans, advances, debts, liabilities, obligations,
covenants and duties owing by the Borrower or any Subsidiary to the Agent, any
Lender, the Arrangers, any affiliate of the Agent, any Lender or the Arrangers,
or any indemnitee under the provisions of Section 9.6 or any other provisions of
the Loan Documents, in each case of any kind or nature, present or future,
arising under this Agreement or any other Loan Document, whether or not
evidenced by any note, guaranty or other instrument, whether or not for the
payment of money, whether arising by reason of an extension of credit, loan,
foreign exchange risk, guaranty, indemnification, or in any other manner,
whether direct or indirect (including those acquired by assignment), absolute or
contingent, due or to become due, now existing or hereafter arising and however
acquired. The term includes, without limitation, all interest, charges,
expenses, fees, attorneys' fees and disbursements, paralegals' fees (in each
case whether or not allowed), and any other sum chargeable to the Borrower or
any Subsidiary under this Agreement or any other Loan Document.

     "Off-Balance Sheet Liability" of a Person means the principal component of
(i) any repurchase obligation or liability of such Person with respect to
accounts or notes receivable sold by such Person, (ii) any liability under any
Sale and Leaseback Transaction which is not a Capitalized Lease, (iii) any
liability under any so-called "synthetic lease" or "tax ownership operating
lease" transaction entered into by such Person, (iv) any Receivables Purchase
Facility or (v) any obligation arising with respect to any other transaction
which is the functional equivalent of or takes the place of borrowing but which
does not constitute a liability on the consolidated balance sheets of such
Person, but excluding from this clause (v) all Operating Leases.

     "Off-Balance Sheet Trigger Event" is defined in Section 7.17.

     "Operating Lease" of a Person means any lease of Property (other than a
Capitalized Lease) by such Person as lessee which has an original term
(including any required renewals and any renewals effective at the option of the
lessor) of one year or more.

     "Other Taxes" is defined in Section 3.5(ii).

     "Outstanding Credit Exposure" means, as to any Lender at any time, the sum
of the aggregate principal amount of its Loans outstanding at such time.

     "Participants" is defined in Section 12.2.1.

     "Payment Date" means the last day of each March, June, September and
December and the Facility Termination Date.

                                       12

<PAGE>

     "PBGC" means the Pension Benefit Guaranty Corporation, or any successor
thereto.

     "PDSI" means Patterson Dental Supply, Inc., a Minnesota corporation.

     "Permitted Acquisition" is defined in Section 6.13.5.

     "Permitted Purchase Money Debt" is defined in Section 6.14.5.

     "Person" means any natural person, corporation, firm, joint venture,
partnership, limited liability company, association, enterprise, trust or other
entity or organization, or any government or political subdivision or any
agency, department or instrumentality thereof.

     "Plan" means an employee pension benefit plan, excluding any Multiemployer
Plan, which is covered by Title IV of ERISA or subject to the minimum funding
standards under Section 412 of the Code as to which the Borrower or any member
of the Controlled Group may have any liability.

     "Pricing Schedule" means the Schedule identifying the Applicable Margin and
Applicable Fee Rate attached hereto and identified as such.

     "Prime Rate" means a rate per annum equal to the prime rate of interest
announced from time to time by BOMC or its parent (which is not necessarily the
lowest rate charged to any customer), changing when and as said prime rate
changes.

     "Property" of a Person means any and all property, whether real, personal,
tangible, intangible, or mixed, of such Person, or other assets owned, leased or
operated by such Person.

     "Pro Rata Share" means, with respect to a Lender, (i) prior to the Funding
Date, a portion equal to a fraction the numerator of which is such Lender's
Commitment at such time (in each case, as adjusted from time to time in
accordance with the provisions of this Agreement) and the denominator of which
is the Aggregate Commitment at such time, and (ii) from and after the Funding
Date and the funding of the Loans, a fraction the numerator of which is such
Lender's Outstanding Credit Exposure at such time and the denominator of which
is the sum of the Aggregate Outstanding Credit Exposure at such time.

     "Purchase Price" means the total consideration and other amounts payable in
connection with any Acquisition, including, without limitation, any portion of
the consideration payable in cash, all Indebtedness, liabilities and contingent
obligations incurred or assumed in connection with such Acquisition and all
transaction costs and expenses incurred in connection with such Acquisition, but
exclusive of the value of any capital stock or other equity interests of the
Borrower or any Subsidiary issued as consideration for such Acquisition.

     "Purchasers" is defined in Section 12.3.1.

     "Rate Management Obligations" of a Person means any and all obligations of
such Person, whether absolute or contingent and howsoever and whensoever
created, arising, evidenced or acquired (including all renewals, extensions and
modifications thereof and substitutions therefor), under (i) any and all Rate
Management Transactions, and (ii) any and all

                                       13

<PAGE>

cancellations, buy backs, reversals, terminations or assignments of any Rate
Management Transactions.

     "Rate Management Transaction" means any transaction (including an agreement
with respect thereto) now existing or hereafter entered into by the Borrower or
a Subsidiary which is a rate swap, basis swap, forward rate transaction,
commodity swap, commodity option, equity or equity index swap, equity or equity
index option, bond option, interest rate option, foreign exchange transaction,
cap transaction, floor transaction, collar transaction, forward transaction,
currency swap transaction, cross-currency rate swap transaction, currency option
or any other similar transaction (including any option with respect to any of
these transactions) or any combination thereof, whether linked to one or more
interest rates, foreign currencies, commodity prices, equity prices or other
financial measures.

     "Receivables Purchase Documents" means each of (i) that certain Receivables
Sale Agreement dated as of May 10, 2002, among the originators named therein and
PDC Funding Company, LLC, as buyer and that certain Receivables Purchase
Agreement dated as of May 10, 2002, among PDC Funding Company, LLC, the
Borrower, Preferred Receivables Funding Corporation, the financial institutions
party thereto and Bank One, as agent, as such agreements may be amended,
restated, extended or otherwise modified from time to time and (ii) that certain
Third Amended and Restated Contract Purchase Agreement, dated as of June 19,
2002, among the Borrower, PDSI, Webster, U.S. Bank National Association,
individually and as agent, and certain buyers identified therein, as such Third
Amended and Restated Contract Purchase Agreement may be amended, restated,
extended or otherwise modified from time to time.

     "Receivables Purchase Facility" means (i) the transactions contemplated by
the Receivables Purchase Documents and (ii) other sales (including licenses),
with limited recourse, or no recourse, by PDSI or Webster of Accounts derived
from sales on contract of furnishings and equipment (but not, however, (a) open
account sales of supplies or (b) Accounts derived from provisions of services).

     "Regulation D" means Regulation D of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor thereto or other
regulation or official interpretation of said Board of Governors relating to
reserve requirements applicable to member banks of the Federal Reserve System.

     "Regulation U" means Regulation U of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by banks, non-banks and non-broker lenders for the purpose
of purchasing or carrying margin stocks applicable to member banks of the
Federal Reserve System.

     "Regulation X" means Regulation X of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by foreign lenders for the purpose of purchasing or carrying
margin stock (as defined therein).

                                       14

<PAGE>

     "Reportable Event" means a reportable event as defined in Section 4043 of
ERISA and the regulations issued under such section, with respect to a Plan
subject to Title IV of ERISA, excluding, however, such events as to which the
PBGC has by regulation waived the requirement of Section 4043(a) or (b) of ERISA
that it be notified within 30 days of the occurrence of such event, provided,
however, that a failure to meet the minimum funding standard of Section 412 of
the Code and of Section 302 of ERISA shall be a Reportable Event regardless of
the issuance of any such waiver of the notice requirement in accordance with
either Section 4043(a) or (b) of ERISA or Section 412(d) of the Code.

     "Required Lenders" means (i) prior to the Funding Date, Lenders in the
aggregate having more than 50% of the Aggregate Commitment at such time, and
(ii) from and after the Funding Date, Lenders in the aggregate having more than
50% of the Aggregate Outstanding Credit Exposure at such time.

     "Reserve Requirement" means, with respect to an Interest Period, the
maximum aggregate reserve requirement (including all basic, supplemental,
marginal and other reserves) which is imposed under Regulation D on
"Eurocurrency liabilities" (as defined in Regulation D).

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

     "Sale and Leaseback Transaction" means any sale or other transfer of
Property by any Person with the intent to lease such Property as lessee.

     "Schedule" refers to a specific schedule to this Agreement, unless another
document is specifically referenced.

     "SEC" means the United States Securities and Exchange Commission, and any
successor thereto.

     "Section" means a numbered section of this Agreement, unless another
document is specifically referenced.

     "Single Employer Plan" means a Plan maintained by the Borrower or any
member of the Controlled Group for employees of the Borrower or any member of
the Controlled Group.

     "Solvent" means, when used with respect to any Person, that at the time of
determination:

     (i)  the fair value of its assets (both at fair valuation and at present
          fair saleable value) is equal to or in excess of the total amount of
          its liabilities, including, without limitation, contingent
          liabilities; and

     (ii) it is then able and expects to be able to pay its debts as they
          mature; and

     (iii) it has capital sufficient to carry on its business as conducted and
          as proposed to be conducted.

                                       15

<PAGE>

     With respect to contingent liabilities (such as litigation, guarantees and
pension plan liabilities), such liabilities shall be computed at the amount
which, in light of all the facts and circumstances existing at the time,
represent the amount which can be reasonably be expected to become an actual or
matured liability.

     "SPV" means any special purpose entity established for the purpose of
purchasing receivables in connection with a receivables securitization
transaction permitted under the terms of this Agreement.

     "Subordinated Indebtedness" of a Person means any Indebtedness of such
Person the payment of which is subordinated to payment of the Obligations to the
written satisfaction of the Required Lenders.

     "Subsidiary" of a Person means (i) any corporation more than 50% of the
outstanding securities having ordinary voting power of which shall at the time
be owned or controlled, directly or indirectly, by such Person or by one or more
of its Subsidiaries or by such Person and one or more of its Subsidiaries, or
(ii) any partnership, limited liability company, association, joint venture or
similar business organization more than 50% of the ownership interests having
ordinary voting power of which shall at the time be so owned or controlled.
Unless otherwise expressly provided, all references herein to a "Subsidiary"
shall mean a Subsidiary of the Borrower.

     "Substantial Portion" means, with respect to the Property of the Borrower
and its Subsidiaries, Property which represents more than 10% of the
consolidated assets of the Borrower and its Subsidiaries or property which is
responsible for more than 10% of the consolidated net sales or of the
Consolidated Net Income of the Borrower and its Subsidiaries, in each case, as
would be shown in the consolidated financial statements of the Borrower and its
Subsidiaries as at the end of the four fiscal quarter period ending with the
fiscal quarter immediately prior to the fiscal quarter in which such
determination is made (or if financial statements have not been delivered
hereunder for that fiscal quarter which ends the four fiscal quarter period,
then the financial statements delivered hereunder for the quarter ending
immediately prior to that quarter).

     "Taxes" means any and all present or future taxes, duties, levies, imposts,
deductions, charges or withholdings, and any and all liabilities with respect to
the foregoing, but excluding Excluded Taxes and Other Taxes.

     "Transaction Documents" means the Loan Documents and the documents executed
and delivered by the Borrower or any of its Subsidiaries in connection with the
AbilityOne Acquisition including, without limitation, the AbilityOne Acquisition
Agreement.

     "Transferee" is defined in Section 12.4.

     "Type" means, with respect to any Advance, its nature as a Floating Rate
Advance or a Eurodollar Advance and with respect to any Loan, its nature as a
Floating Rate Loan or a Eurodollar Loan.

                                       16

<PAGE>

     "Unfunded Liabilities" means the amount (if any) by which the present value
of all vested and unvested accrued benefits under each Single Employer Plan
subject to Title IV of ERISA exceeds the fair market value of all such Plan's
assets allocable to such benefits, all determined as of the then most recent
valuation date for such Plan for which a valuation report is available, using
PBGC actuarial assumptions for single employer plan terminations.

     "Unmatured Default" means an event which but for the lapse of time or the
giving of notice, or both, would constitute a Default.

     "Webster" means Webster Veterinary Supply, Inc., a Minnesota corporation.

     "Weighted Average Life to Maturity" means when applied to any Indebtedness
at any date, the number of years obtained by dividing (i) the sum of the
products obtained by multiplying (a) the amount of each then remaining
installment, sinking fund, serial maturity or other required scheduled payments
of principal, including payment at final maturity, in respect thereof, by (b)
the number of years (calculated to the nearest one-twelfth) that will elapse
between such date and the making of such payment, by (ii) the then outstanding
principal amount of such Indebtedness.

     "Wholly-Owned Subsidiary" of a Person means (i) any Subsidiary all of the
outstanding voting securities (other than directors' qualifying shares) of which
shall at the time be owned or controlled, directly or indirectly, 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, or (ii) any partnership,
limited liability company, association, joint venture or similar business
organization 100% of the ownership interests having ordinary voting power of
which shall at the time be so owned or controlled.

     1.2. Plural Forms. The foregoing definitions shall be equally applicable to
both the singular and plural forms of the defined terms.

                                   ARTICLE II

                                   THE CREDITS

     2.1. Loans.

          2.1.1 Amounts of Loans. Subject to the terms and conditions set forth
     in this Agreement, each Lender severally and not jointly agrees to make on
     the Funding Date, a term loan, in Dollars, to the Borrower in an aggregate
     amount up to such Lender's Commitment. All Loans shall be made by the
     Lenders on the Funding Date simultaneously and proportionately to their
     respective Pro Rata Shares, it being understood that no Lender shall be
     responsible for any failure by any other Lender to perform its obligation
     to make any Loan hereunder nor shall the Commitment of any Lender be
     increased or decreased as a result of any such failure.

          2.1.2 Borrowing Notice. The Borrower shall deliver to the Agent an
     irrevocable notice (a "Borrowing Notice") signed by it on the Funding Date.
     Such Borrowing Notice shall specify (i) the aggregate amount of the Loans
     being requested and (ii) instructions

                                       17

<PAGE>

     for the disbursement of proceeds of such Loans. The Loans shall initially
     be Floating Rate Loans and thereafter may be continued as Floating Rate
     Loans or converted into Eurodollar Rate Loans in the manner provided in
     Section 2.7 and subject to the other conditions and limitations therein set
     forth and set forth in this Article II. Any Borrowing Notice given pursuant
     to this Section 2.1.2 shall be irrevocable.

          2.1.3 Making of Loans. Promptly after receipt of the Borrowing Notice
     under Section 2.1.2 in respect of the Loans, the Agent shall notify each
     Lender by telecopy, or other similar form of transmission, of the proposed
     Advance. Each Lender shall deposit an amount equal to its Pro Rata Share of
     the Loans with the Agent at its office in Chicago, Illinois, in immediately
     available funds, on the Funding Date, as specified in the Borrowing Notice.
     Subject to the fulfillment of the conditions precedent set forth in Article
     IV, the Agent shall make the proceeds of such amounts received by it
     available to the Borrower at the Agent's office in Chicago, Illinois on
     such date and shall disburse such proceeds in accordance with the
     Borrower's disbursement instructions set forth in such Borrowing Notice.
     The failure of any Lender to deposit the amount described above with the
     Agent on such date shall not relieve any other Lender of its obligations
     hereunder to make its Loan on such date.

          2.1.4 Repayment of the Loans. The Loans shall be repaid in a single
     installment payable on the Facility Termination Date. No installment of any
     Loan may be reborrowed once repaid. In addition to the scheduled payments
     on the Loans, the Borrower (i) may make the voluntary prepayments described
     in Section 2.6 for credit against the scheduled payments on the Loans
     pursuant to Section 2.6 and (ii) shall make the mandatory prepayments
     prescribed in Section 2.2 for credit against the scheduled payments on the
     Loans pursuant to Section 2.2.

     2.2. Required Payments; Termination. (a) Any outstanding Advances and all
other unpaid Obligations shall be paid in full by the Borrower on the Facility
Termination Date. Until all of the Obligations (other than contingent indemnity
obligations) shall have been fully paid and satisfied and all financing
arrangements among the Borrower and the Lenders hereunder and under the other
Loan Documents shall have been terminated, all of the rights and remedies under
this Agreement and the other Loan Documents shall survive.

          (b) Asset Sales and Insurance Proceeds. Upon (1) the consummation of
any sale, lease, conveyance, transfer, casualty or other disposition ("Asset
Sale") of Property (other than sales permitted under Sections 6.12.1 through
6.12.6) by the Borrower or any Subsidiary of the Borrower or (2) the receipt by
the Borrower or any of its Subsidiaries of proceeds from insurance in connection
with any property loss or casualty ("Loss Proceeds"), and in each case, except
as provided in the second sentence of this clause (b), within five (5) Business
Days after the Borrower's or any of its Subsidiaries' (x) receipt of any Net
Cash Proceeds from any such Asset Sale or any such Loss Proceeds, or (y)
conversion to cash or Cash Equivalent Investments of non-cash proceeds (whether
principal or interest and including securities, release of escrow arrangements
or lease payments) received from any Asset Sale, the Borrower shall make a
mandatory prepayment of the Obligations, subject to the provisions governing the
application of payments set forth in Section 2.2(d), in an amount equal to one
hundred percent (100%) of such Net Cash Proceeds or Loss Proceeds or such
proceeds converted from non-cash to cash or Cash

                                       18

<PAGE>

Equivalent Investments. Unless a Default or Unmatured Default shall have
occurred and is continuing, in the event that the Borrower shall have given the
Agent written notice within thirty (30) days after an Asset Sale or event giving
rise to such Loss Proceeds of its intention to replace the assets or use such
Net Cash Proceeds or Loss Proceeds, as applicable, to acquire other like-kind
assets (which shall include, without limitation, assets acquired pursuant to a
Permitted Acquisition) within twelve (12) months following such Asset Sale or
the receipt of such Loss Proceeds, as applicable, then such Net Cash Proceeds or
Loss Proceeds shall not be subject to the provisions of the first sentence of
this clause (b) unless and to the extent that such applicable period shall have
expired without such replacement having been made.

          (c) Financings. Upon the consummation of any Financing by the Borrower
or any Subsidiary of the Borrower, within three (3) Business Days after the
Borrower's or any of its Subsidiaries' receipt of any Net Cash Proceeds from
such Financing, the Borrower shall make a mandatory prepayment of the
Obligations, subject to the provisions governing the application of payments set
forth in Section 2.2(d), in an amount equal to one hundred percent (100%) of
such Net Cash Proceeds.

          (d) Application of Designated Prepayments. Each mandatory prepayment
required by clauses (b) and (c) of this Section 2.2 shall be referred to herein
as a "Designated Prepayment." Designated Prepayments shall be applied to repay
Loans ratably in an amount equal to such Designated Prepayment.

          (e) Application and Priority of Prepayments. With respect to the
reduction of the Loans on any date, Designated Prepayments shall first be
applied to Floating Rate Loans and to any Eurodollar Rate Loans maturing on such
date and then to subsequently maturing Eurodollar Rate Loans in order of
maturity.

     2.3. Ratable Loans; Types of Advances. Each Advance hereunder shall consist
of Loans made from the several Lenders ratably in proportion to their respective
Pro Rata Shares. The Advances may be Floating Rate Advances or Eurodollar
Advances, or a combination thereof, selected by the Borrower in accordance with
Section 2.7.

     2.4. Facility Fee. The Borrower shall pay to the Agent, for the account of
the Lenders a facility fee (the "Facility Fee") at a per annum rate equal to the
Applicable Fee Rate multiplied by (i) prior to the Funding Date, each Lender's
Commitment, and (ii) on and after the Funding Date, each Lender's Outstanding
Credit Exposure, from the Closing Date to and including the date on which all of
the Loans shall be repaid in full. All such Facility Fees payable hereunder
shall be payable quarterly in arrears on each Payment Date.

     2.5. Minimum Amount of Each Advance. Each Eurodollar Advance shall be in
the minimum amount of $1,000,000 (and in multiples of $100,000 if in excess
thereof), and each Floating Rate Advance shall be in the minimum amount of
$1,000,000 (and in multiples of $100,000 if in excess thereof).

     2.6. Optional Principal Payments. The Borrower may from time to time pay,
without penalty or premium, all outstanding Floating Rate Advances, or any
portion of the outstanding Floating Rate Advances, in a minimum aggregate amount
of $1,000,000 or any integral multiple

                                       19

<PAGE>

of $1,000,000 in excess thereof, upon one (1) Business Day's prior notice to the
Agent. The Borrower may from time to time pay, subject to the payment of any
funding indemnification amounts required by Section 3.4 but without penalty or
premium, all outstanding Eurodollar Advances, or, in a minimum aggregate amount
of $1,000,000 or any integral multiple of $1,000,000 in excess thereof, any
portion of the outstanding Eurodollar Advances upon three (3) Business Days'
prior notice to the Agent.

     2.7. Conversion and Continuation of Outstanding Advances; No Conversion or
Continuation of Eurodollar Advances After Default. Floating Rate Advances shall
continue as Floating Rate Advances unless and until such Floating Rate Advances
are converted into Eurodollar Advances pursuant to this Section 2.7 or are
repaid in accordance with Section 2.6. Each Eurodollar Advance shall continue as
a Eurodollar Advance until the end of the then applicable Interest Period
therefor, at which time such Eurodollar Advance shall be automatically converted
into a Floating Rate Advance unless (x) such Eurodollar Advance is or was repaid
in accordance with Section 2.6 or (y) the Borrower shall have given the Agent a
Conversion/Continuation Notice (as defined below) requesting that, at the end of
such Interest Period, such Eurodollar Advance continue as a Eurodollar Advance
for the same or another Interest Period. Subject to the terms of Section 2.6 and
the payment of any funding indemnification amounts required by Section 3.4, the
Borrower may elect from time to time to convert all or any part of an Advance of
any Type into any other Type or Types of Advances. Notwithstanding anything to
the contrary contained in this Section 2.7, during the continuance of a Default
or an Unmatured Default, the Agent may (or shall at the direction of the
Required Lenders), by notice to the Borrower, declare that no Advance may be
made as, converted to or, following the expiration of any Interest Periods then
in effect, continued as a Eurodollar Advance. The Borrower shall give the Agent
irrevocable notice (a "Conversion/Continuation Notice") of each conversion of an
Advance or continuation of a Eurodollar Advance not later than 12:00 noon
(Chicago time) on the same Business Day, in the case of a conversion into a
Floating Rate Advance, or three (3) Business Days, in the case of a conversion
into or continuation of a Eurodollar Advance, prior to the date of the requested
conversion or continuation, specifying:

     (i)  the requested date, which shall be a Business Day, of such conversion
          or continuation,

     (ii) the aggregate amount and Type of the Advance which is to be converted
          or continued, and

     (iii) the amount of such Advance which is to be converted into or continued
          as a Eurodollar Advance and the duration of the Interest Period
          applicable thereto.

     2.8. Changes in Interest Rate, etc. Each Floating Rate Advance shall bear
interest on the outstanding principal amount thereof, for each day from and
including the date such Advance is made or is automatically converted from a
Eurodollar Advance into a Floating Rate Advance pursuant to Section 2.7, to but
excluding the date it is paid or is converted into a Eurodollar Advance pursuant
to Section 2.7 hereof, at a rate per annum equal to the Floating Rate for such
day. Changes in the rate of interest on that portion of any Advance maintained
as a Floating Rate Advance will take effect simultaneously with each change in
the Alternate Base Rate. Each

                                       20

<PAGE>

Eurodollar Advance shall bear interest on the outstanding principal amount
thereof from and including the first day of the Interest Period applicable
thereto to (but not including) the last day of such Interest Period at the
interest rate determined by the Agent as applicable to such Eurodollar Advance
based upon the Borrower's selections under Section 2.7 and otherwise in
accordance with the terms hereof. No Interest Period may end after the Facility
Termination Date.

     2.9. Rates Applicable After Default. During the continuance of a Default
the Required Lenders may, at their option, by notice to the Borrower (which
notice may be revoked at the option of the Required Lenders notwithstanding any
provision of Section 8.2 requiring unanimous consent of the Lenders to changes
in interest rates), declare that (i) each Eurodollar Advance shall bear interest
for the remainder of the applicable Interest Period at a rate per annum equal to
the Floating Rate in effect from time to time plus 2% per annum, (ii) each
Floating Rate Advance shall bear interest at a rate per annum equal to the
Floating Rate in effect from time to time plus 2% per annum; provided that,
during the continuance of a Default under Section 7.2, 7.3 (solely arising as a
result of a breach of any of Sections 6.20 through 6.22), 7.6 or 7.7, the
interest rates set forth in clauses (i) and (ii) above shall be applicable to
all Credit Extensions, Advances, fees and other Obligations hereunder without
any election or action on the part of the Agent or any Lender.

     2.10. Method of Payment. All payments of the Obligations hereunder shall be
made, without setoff, deduction, or counterclaim, in immediately available funds
to the Agent at the Agent's address specified pursuant to Article XIII, or at
any other Lending Installation of the Agent specified in writing by the Agent to
the Borrower, by 12:00 noon (Chicago time) on the date when due and shall
(except as otherwise specifically required hereunder) be applied ratably by the
Agent among the Lenders. Each payment delivered to the Agent for the account of
any Lender shall be delivered promptly by the Agent to such Lender in the same
type of funds that the Agent received at its address specified pursuant to
Article XIII or at any Lending Installation specified in a notice received by
the Agent from such Lender. The Agent is hereby authorized to charge the account
of the Borrower maintained with BOMC for each payment of the Obligations as it
becomes due hereunder.

     2.11. Noteless Agreement; Evidence of Indebtedness.

     (i)  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 hereunder.

     (ii) The Agent shall also maintain accounts in which it will record (a) the
          date and the amount of each Loan made hereunder, the Type thereof and
          the Interest Period (in the case of a Eurodollar Advance) with respect
          thereto, (b) the amount of any principal or interest due and payable
          or to become due and payable from the Borrower to each Lender
          hereunder, (c) the effective date and amount of each Assignment
          Agreement delivered to and accepted by it and the parties thereto
          pursuant to Section 12.3, (d) the amount of any sum received by the
          Agent

                                       21

<PAGE>

          hereunder from the Borrower and each Lender's share thereof, and (e)
          all other appropriate debits and credits as provided in this
          Agreement, including, without limitation, all fees, charges, expenses
          and interest.

     (iii) The entries maintained in the accounts maintained pursuant to
          paragraphs (i) and (ii) above shall be prima facie evidence of the
          existence and amounts of the Obligations therein recorded; provided,
          however, that the failure of the Agent or any Lender to maintain such
          accounts or any error therein shall not in any manner affect the
          obligation of the Borrower to repay the Obligations in accordance with
          their terms.

     (iv) Any Lender may request that its Loans be evidenced by a promissory
          note in substantially the form of Exhibit E (a "Note"). In such event,
          the Borrower shall prepare, execute and deliver to such Lender such
          Note payable to the order of such Lender or its registered assigns.
          Thereafter, the Loans evidenced by such Note and interest thereon
          shall at all times (prior to any assignment pursuant to Section 12.3)
          be represented by one or more Notes payable to the order of the payee
          named therein, except to the extent that any such Lender subsequently
          returns any such Note for cancellation and requests that such Loans
          once again be evidenced as described in paragraphs (i) and (ii) above.

     2.12. Telephonic Notices. The Borrower hereby authorizes the Lenders and
the Agent to extend, convert or continue Advances, effect selections of Types of
Advances and to transfer funds based on telephonic notices made by any person or
persons the Agent or any Lender in good faith believes to be acting on behalf of
the Borrower, it being understood that the foregoing authorization is
specifically intended to allow Borrowing Notices and Conversion/Continuation
Notices to be given telephonically. The Borrower agrees to deliver promptly to
the Agent a written confirmation, signed by an Authorized Officer, if such
confirmation is requested by the Agent or any Lender, of each telephonic notice.
If the written confirmation differs in any material respect from the action
taken by the Agent and the Lenders, the records of the Agent and the Lenders
shall govern absent manifest error.

     2.13. Interest Payment Dates; Interest and Fee Basis. Interest accrued on
each Floating Rate Advance shall be payable in arrears on each Payment Date,
commencing with the first such date to occur after the Closing Date, on any date
on which the Floating Rate Advance is prepaid, whether due to acceleration or
otherwise, and at maturity. Interest accrued on that portion of the outstanding
principal amount of any Floating Rate Advance converted into a Eurodollar
Advance on a day other than a Payment Date shall be payable on the date of
conversion. Interest accrued on each Eurodollar Advance shall be payable on the
last day of its applicable Interest Period, on any date on which the Eurodollar
Advance is prepaid, whether by acceleration or otherwise, and at maturity.
Interest accrued on each Eurodollar Advance having an Interest Period longer
than three (3) months shall also be payable on the last day of each three-month
interval during such Interest Period. Interest on Eurodollar Advances and all
fees hereunder shall be calculated for actual days elapsed on the basis of a
360-day year. Interest on Floating Rate Advances shall be calculated for actual
days elapsed on the basis of a 365/366-day year. Interest shall be payable for
the day an Advance is made but not for the day of any payment on the amount paid
if payment is received prior to 12:00 noon (Chicago time) at the place of
payment. If any payment

                                       22

<PAGE>

of principal of or interest on an Advance, any fees or any other amounts payable
to the Agent or any Lender hereunder shall become due on a day which is not a
Business Day, such payment shall be made on the next succeeding Business Day
and, in the case of a principal payment, such extension of time shall be
included in computing interest, fees and commissions in connection with such
payment.

     2.14. Notification of Advances, Interest Rates and Prepayments;
Availability of Loans. Promptly after receipt thereof, the Agent will notify
each Lender of the contents of each Borrowing Notice, Conversion/Continuation
Notice, and repayment notice received by it hereunder. The Agent will notify the
Borrower and each Lender of the interest rate applicable to each Eurodollar
Advance promptly upon determination of such interest rate and will give the
Borrower and each Lender prompt notice of each change in the Alternate Base
Rate. Not later than 12:00 noon (Chicago time) on the Funding Date, each Lender
shall make available its Loan or Loans in funds immediately available in Chicago
to the Agent at its address specified pursuant to Article XIII. The Agent will
promptly make the funds so received from the Lenders available to the Borrower
at the Agent's aforesaid address.

     2.15. Lending Installations. Each Lender may book its Loans at any Lending
Installation selected by such Lender, and may change its Lending Installation
from time to time. All terms of this Agreement shall apply to any such Lending
Installation and the Loans and any Notes issued hereunder shall be deemed held
by each Lender for the benefit of any such Lending Installation. Each Lender
may, by written notice to the Agent and the Borrower in accordance with Article
XIII, designate replacement or additional Lending Installations through which
Loans will be made by it and for whose account Loan payments are to be made.

     2.16. Non-Receipt of Funds by the Agent. Unless the Borrower or a Lender,
as the case may be, notifies the Agent prior to the date on which it is
scheduled to make payment to the Agent of (i) in the case of a Lender, the
proceeds of a Loan or (ii) in the case of the Borrower, a payment of principal,
interest or fees to the Agent for the account of the Lenders, that it does not
intend to make such payment, the Agent may assume that such payment has been
made. The Agent may, but shall not be obligated to, make the amount of such
payment available to the intended recipient in reliance upon such assumption. If
such Lender or the Borrower, as the case may be, has not in fact made such
payment to the Agent, the recipient of such payment shall, on demand by the
Agent, repay to the Agent the amount so made available together with interest
thereon in respect of each day during the period commencing on the date such
amount was so made available by the Agent until the date the Agent recovers such
amount at a rate per annum equal to (x) in the case of payment by a Lender, the
Federal Funds Effective Rate for such day for the first three days and,
thereafter, the interest rate applicable to the relevant Loan or (y) in the case
of payment by the Borrower, the interest rate applicable to the relevant Loan.

     2.17. Replacement of Lender. If the Borrower is required pursuant to
Section 3.1, 3.2 or 3.5 to make any additional payment to any Lender or if any
Lender's obligation to make or continue, or to convert Floating Rate Advances
into, Eurodollar Advances shall be suspended pursuant to Section 3.3 (any Lender
so affected an "Affected Lender"), the Borrower may elect, if such amounts
continue to be charged or such suspension is still effective, to terminate or
replace the Loans of such Affected Lender, provided that no Default or Unmatured
Default shall have occurred and be continuing at the time of such termination or
replacement, and provided

                                       23

<PAGE>

further that, concurrently with such termination or replacement, (i) if the
Affected Lender is being replaced, another bank or other entity which is
reasonably satisfactory to the Borrower and the Agent shall agree, as of such
date, to purchase for cash the Outstanding Credit Exposure of the Affected
Lender pursuant to an Assignment Agreement substantially in the form of Exhibit
C and to become a Lender for all purposes under this Agreement and to assume all
obligations of the Affected Lender to be terminated as of such date and to
comply with the requirements of Section 12.3 applicable to assignments, and (ii)
the Borrower shall pay to such Affected Lender in immediately available funds on
the day of such replacement (A) all interest, fees and other amounts then
accrued but unpaid to such Affected Lender by the Borrower hereunder to and
including the date of termination, including without limitation payments due to
such Affected Lender under Sections 3.1, 3.2 and 3.5, and (B) an amount, if any,
equal to the payment which would have been due to such Lender on the day of such
replacement under Section 3.4 had the Loans of such Affected Lender been prepaid
on such date rather than sold to the replacement Lender, in each case to the
extent not paid by the purchasing Lender and (iii) if the Affected Lender is
being terminated, the Borrower shall pay to such Affected Lender all Obligations
due to such Affected Lender (including the amounts described in the immediately
preceding clauses (i) and (ii) plus the outstanding principal balance of such
Affected Lender's Credit Extensions).

                                  ARTICLE III

                             YIELD PROTECTION; TAXES

     3.1. Yield Protection. If, on or after the Closing Date, the adoption of
any law or any governmental or quasi-governmental rule, regulation, policy,
guideline or directive (whether or not having the force of law), or any change
in any such law, rule, regulation, policy, guideline or directive or in the
interpretation or administration thereof by any governmental or
quasi-governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender or
applicable Lending Installation with any request or directive (whether or not
having the force of law) of any such authority, central bank or comparable
agency:

     (i)  subjects any Lender or any applicable Lending Installation to any
          Taxes, or changes the basis of taxation of payments (other than with
          respect to Excluded Taxes) to any Lender in respect of its Eurodollar
          Loans, or

     (ii) imposes or increases or deems applicable any reserve, assessment,
          insurance charge, special deposit or similar requirement against
          assets of, deposits with or for the account of, or credit extended by,
          any Lender or any applicable Lending Installation (other than reserves
          and assessments taken into account in determining the interest rate
          applicable to Eurodollar Advances), or

     (iii) imposes any other condition the result of which is to increase the
          cost to any Lender, any applicable Lending Installation of making,
          funding or maintaining its Commitment or Eurodollar Loans, or reduces
          any amount receivable by any Lender or any applicable Lending
          Installation in connection with its Commitment or Eurodollar Loans, or
          requires any Lender or any applicable Lending Installation to make any
          payment calculated by reference to the amount of

                                       24

<PAGE>

          Commitment or Eurodollar Loans held or interest received by it, by an
          amount deemed material by such Lender,

and the result of any of the foregoing is to increase the cost to such Lender or
applicable Lending Installation of making or maintaining its Eurodollar Loans or
Commitment, as applicable, or to reduce the return received by such Lender or
applicable Lending Installation in connection with such Eurodollar Loans or
Commitment, then, within 15 days of demand, accompanied by the written statement
required by Section 3.6, by such Lender, the Borrower shall pay such Lender such
additional amount or amounts as will compensate such Lender for such increased
cost or reduction in amount received.

     3.2. Changes in Capital Adequacy Regulations. If a Lender determines the
amount of capital required or expected to be maintained by such Lender, any
Lending Installation of such Lender or any corporation controlling such Lender
is increased as a result of a Change, then, within 15 days of demand,
accompanied by the written statement required by Section 3.6, by such Lender,
the Borrower shall pay such Lender the amount necessary to compensate for any
shortfall in the rate of return on the portion of such increased capital which
such Lender determines is attributable to this Agreement, its Outstanding Credit
Exposure or its Commitment to make Loans, as applicable, hereunder (after taking
into account such Lender's policies as to capital adequacy). "Change" means (i)
any change after the Closing Date in the Risk-Based Capital Guidelines or (ii)
any adoption of, or change in, or change in the interpretation or administration
of any other law, governmental or quasi-governmental rule, regulation, policy,
guideline, interpretation, or directive (whether or not having the force of law)
after the Closing Date which affects the amount of capital required or expected
to be maintained by any Lender or any Lending Installation or any corporation
controlling any Lender. "Risk-Based Capital Guidelines" means (i) the risk-based
capital guidelines in effect in the United States on the Closing Date, including
transition rules, and (ii) the corresponding capital regulations promulgated by
regulatory authorities outside the United States implementing the July 1988
report of the Basle Committee on Banking Regulation and Supervisory Practices
Entitled "International Convergence of Capital Measurements and Capital
Standards," including transition rules, and any amendments to such regulations
adopted prior to the Closing Date.

     3.3. Availability of Types of Advances. If (x) any Lender determines that
maintenance of its Eurodollar Loans at a suitable Lending Installation would
violate any applicable law, rule, regulation, or directive, whether or not
having the force of law, or (y) the Required Lenders determine that (i) deposits
of a type and maturity appropriate to match fund Eurodollar Advances are not
available or (ii) the interest rate applicable to Eurodollar Advances does not
accurately reflect the cost of making or maintaining Eurodollar Advances, or
(iii) no reasonable basis exists for determining the Eurodollar Base Rate, then
the Agent shall suspend the availability of Eurodollar Advances and require any
affected Eurodollar Advances to be repaid or converted to Floating Rate Advances
on the respective last days of the then current Interest Periods with respect to
such Loans or within such earlier period as required by law, subject to the
payment of any funding indemnification amounts required by Section 3.4.

     3.4. Funding Indemnification. If any payment of a Eurodollar Advance occurs
on a date which is not the last day of the applicable Interest Period, whether
because of acceleration, prepayment or otherwise, or a Eurodollar Advance is not
made or continued, or a Floating Rate

                                       25

<PAGE>

Advance is not converted into a Eurodollar Advance, on the date specified by the
Borrower for any reason other than default by the Lenders, or a Eurodollar
Advance is not prepaid on the date specified by the Borrower for any reason, the
Borrower will indemnify each Lender for any reasonable loss or cost incurred by
it resulting therefrom, including, without limitation, any reasonable loss or
cost in liquidating or employing deposits acquired to fund or maintain such
Eurodollar Advance.

     3.5. Taxes. (i) All payments by the Borrower to or for the account of any
Lender or the Agent hereunder or under any Note shall be made free and clear of
and without deduction for any and all Taxes. If the Borrower shall be required
by law to deduct any Taxes from or in respect of any sum payable hereunder to
any Lender or the Agent, (a) 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 3.5) such Lender or the Agent (as the
case may be) receives an amount equal to the sum it would have received had no
such deductions been made, (b) the Borrower shall make such deductions, (c) the
Borrower shall pay the full amount deducted to the relevant authority in
accordance with applicable law and (d) the Borrower shall furnish to the Agent
the original copy of a receipt evidencing payment thereof or, if a receipt
cannot be obtained with reasonable efforts, such other evidence of payment as is
reasonably acceptable to the Agent, in each case within 30 days after such
payment is made.

     (ii) In addition, the Borrower shall pay any present or future stamp or
          documentary taxes and any other excise or property taxes, charges or
          similar levies which arise from any payment made hereunder or under
          any Note or from the execution or delivery of, or otherwise with
          respect to, this Agreement or any Note or any other Loan Document
          ("Other Taxes").

     (iii) The Borrower shall indemnify the Agent and each Lender for the full
          amount of Taxes or Other Taxes (including, without limitation, any
          Taxes or Other Taxes imposed on amounts payable under this Section
          3.5) paid by the Agent or such Lender as a result of its Commitment,
          any Credit Extensions made by it hereunder, or otherwise in connection
          with its participation in this Agreement and any liability (including
          penalties, interest and expenses) arising therefrom or with respect
          thereto. Payments due under this indemnification shall be made within
          30 days of the date the Agent or such Lender makes demand therefor
          pursuant to Section 3.6.

     (iv) Each Lender that is not incorporated under the laws of the United
          States of America or a state thereof (each a "Non-U.S. Lender") agrees
          that it will, not more than ten Business Days after the date on which
          it becomes a party to this Agreement (but in any event before a
          payment is due to it hereunder), (i) deliver to each of the Borrower
          and the Agent two duly completed copies of United States Internal
          Revenue Service Form W-8BEN or W-8ECI or successor forms, certifying
          in either case that such Non-U.S. Lender is entitled to receive
          payments under this Agreement or under any Note without deduction or
          withholding of any United States federal income taxes, or (ii) in the
          case of a Non-U.S. Lender that is fiscally transparent, deliver to the
          Agent a United States Internal Revenue Service Form W-8IMY or
          successor form together with the applicable accompanying duly

                                       26

<PAGE>

          completed copies of United States Internal Revenue Service applicable
          Forms W-8 or W-9 or successor forms, as the case may be, and certify
          that it is entitled to an exemption from United States withholding
          tax. Each Non-U.S. Lender further undertakes to deliver to each of the
          Borrower and the Agent renewals or additional copies of such form (or
          any successor form) (x) on or before the date that such form expires
          or becomes obsolete, (y) after the occurrence of any event requiring a
          change in the most recent forms so delivered by it, and (z) from time
          to time upon reasonable request by the Borrower or the Agent. All
          forms or amendments described in the preceding sentence shall certify
          that such Lender is entitled to receive payments under this Agreement
          without deduction or withholding of any United States federal income
          taxes, unless an event (including without limitation any change in
          treaty, law or regulation) has occurred prior to the date on which any
          such delivery would otherwise be required which renders all such forms
          inapplicable or which would prevent such Lender from duly completing
          and delivering any such form or amendment with respect to it and such
          Lender advises the Borrower and the Agent that it is not capable of
          receiving payments without any deduction or withholding of United
          States federal income tax.

     (v)  For any period during which a Non-U.S. Lender has failed to provide
          the Borrower with an appropriate form pursuant to clause (iv) above
          (unless such failure is due to a change in treaty, law or regulation,
          or any change in the interpretation or administration thereof by any
          governmental authority, occurring subsequent to the date on which a
          form originally was required to be provided), such Non-U.S. Lender
          shall not be entitled to indemnification under this Section 3.5 with
          respect to Taxes imposed by the United States; provided that, should a
          Non-U.S. Lender which is otherwise exempt from or subject to a reduced
          rate of withholding tax become subject to Taxes because of its failure
          to deliver a form required under clause (iv) above, the Borrower shall
          take such steps as such Non-U.S. Lender shall reasonably request to
          assist such Non-U.S. Lender to recover such Taxes.

     (vi) Any Lender that is entitled to an exemption from or reduction of
          withholding tax with respect to payments under this Agreement or any
          Note pursuant to the law of any relevant jurisdiction or any treaty
          shall deliver to the Borrower (with a copy to the Agent), at the time
          or times prescribed by applicable law, such properly completed and
          executed documentation prescribed by applicable law as will permit
          such payments to be made without withholding or at a reduced rate.

     (vii) If the U.S. Internal Revenue Service or any other governmental
          authority of the United States or any other country or any political
          subdivision thereof asserts a claim that the Agent did not properly
          withhold tax from amounts paid to or for the account of any Lender
          (because the appropriate form was not delivered or properly completed,
          because such Lender failed to notify the Agent of a change in
          circumstances which rendered its exemption from withholding
          ineffective, or for any other reason), such Lender shall indemnify the
          Agent fully for all amounts paid, directly or indirectly, by the Agent
          as tax, withholding therefor, or

                                       27

<PAGE>

          otherwise, including penalties and interest, and including taxes
          imposed by any jurisdiction on amounts payable to the Agent under this
          subsection, together with all costs and expenses related thereto
          (including attorneys fees of attorneys for the Agent). The obligations
          of the Lenders under this Section 3.5(vii) shall survive the payment
          of the Obligations and termination of this Agreement.

     3.6. Lender Statements; Survival of Indemnity. Each Lender shall deliver a
written statement of such Lender to the Borrower (with a copy to the Agent) as
to the amount due, if any, under Section 3.1, 3.2, 3.4 or 3.5. Such written
statement shall set forth in reasonable detail the calculations upon which such
Lender determined such amount and shall be final, conclusive and binding on the
Borrower in the absence of manifest error. Determination of amounts payable
under such Sections in connection with a Eurodollar Loan shall be calculated as
though each Lender funded its Eurodollar Loan through the purchase of a deposit
of the type, currency and maturity corresponding to the deposit used as a
reference in determining the Eurodollar Rate applicable to such Loan, whether in
fact that is the case or not. Unless otherwise provided herein, the amount
specified in the written statement of any Lender shall be payable on demand
after receipt by the Borrower of such written statement. The obligations of the
Borrower under Sections 3.1, 3.2, 3.4 and 3.5 shall survive payment of the
Obligations and termination of this Agreement.

     3.7. Alternative Lending Installation. To the extent reasonably possible,
each Lender shall designate an alternate Lending Installation with respect to
its Eurodollar Loans to reduce any liability of the Borrower to such Lender
under Sections 3.1, 3.2 and 3.5 or to avoid the unavailability of Eurodollar
Advances under Section 3.3, so long as such designation is not, in the judgment
of such Lender, reasonably disadvantageous to such Lender. A Lender's
designation of an alternative Lending Installation shall not affect the
Borrower's rights under Section 2.17 to replace a Lender.

                                   ARTICLE IV

                              CONDITIONS PRECEDENT

     4.1. Effectiveness of Commitments. This Agreement shall not become
effective, nor shall any Lender be required to make any Credit Extension
hereunder, unless on or before September 19, 2003 the following conditions
precedent have been satisfied and the Borrower has furnished to the Agent with
sufficient copies for the Lenders:

          4.1.1 Copies of the articles or certificate of incorporation (or the
     equivalent thereof) of each Credit Party, in each case, together with all
     amendments thereto, and a certificate of good standing, each certified by
     the appropriate governmental officer in its jurisdiction of organization
     and accompanied by a certification by the Secretary or Assistant Secretary
     of such Credit Party that there have been no changes in the matters
     certified by such governmental officer since the date of such governmental
     officer's certification.

          4.1.2 Copies, certified by the Secretary or Assistant Secretary (or
     the equivalent thereof) of each Credit Party, in each case, of its by-laws
     and of its Board of Directors'

                                       28

<PAGE>

     resolutions and of resolutions or actions of any other body authorizing the
     execution of the Loan Documents to which such Credit Party is a party.

          4.1.3 An incumbency certificate, executed by the Secretary or
     Assistant Secretary (or the equivalent thereof) of each Credit Party which
     shall identify by name and title and bear the signatures of the Authorized
     Officers and any other officers of each such Credit Party authorized to
     sign the Loan Documents to which it is a party, upon which certificate the
     Agent and the Lenders shall be entitled to rely until informed of any
     change in writing by the applicable Credit Party.

          4.1.4 A certificate reasonably acceptable to the Agent signed by the
     chief financial officer of the Borrower, stating that on the Funding Date
     (a) no Default or Unmatured Default has occurred and is continuing, (b) all
     of the representations and warranties in Article V shall be true and
     correct (or, in the case of representations and warranties applicable to
     AbilityOne, true and correct to the best of such officer's knowledge) as of
     such date and (c) no material adverse change in the business, Property,
     condition (financial or otherwise), operations or results of operations,
     performance or prospects of the Borrower and its Subsidiaries taken as a
     whole has occurred since April 26, 2003 and, to the best of such officer's
     knowledge, of AbilityOne and its Subsidiaries taken as a whole has occurred
     since December 31, 2002.

          4.1.5 An initial compliance certificate, dated as of the Closing Date
     and reflecting calculations as of July 26, 2003, in substantially the form
     of Exhibit B hereto.

          4.1.6 Pro forma opening financial statements for the Borrower giving
     effect to the AbilityOne Acquisition as of the last day of the twelve-month
     period ending on July 26, 2003, and (ii) projections updating the
     projections previously provided to the Agents on or about August 15, 2003.

          4.1.7 A written opinion of Matthew Levitt, counsel to the Credit
     Parties, in form and substance reasonably satisfactory to the Agent and
     addressed to the Lenders in substantially the form of Exhibit A hereto.

          4.1.8 Duly executed originals of this Agreement and the Guaranty from
     each of the Credit Parties parties thereto and duly executed originals of
     any Notes requested by a Lender pursuant to Section 2.11 payable to the
     order of each such requesting Lender, and copies of the AbilityOne
     Acquisition Agreement that will be in effect on and after the date of this
     Agreement in form and substance satisfactory to the Agent and its counsel.

          4.1.9 Evidence satisfactory to the Agent that (i) all conditions
     precedent to the consummation of the AbilityOne Acquisition have been
     satisfied or waived by the Borrower and all of the representations and
     warranties in the AbilityOne Acquisition Agreement are accurate in all
     material respects as of the date on which the AbilityOne Acquisition is
     consummated; (ii) the AbilityOne Acquisition has been approved by all
     necessary corporate action of the Borrower's and AbilityOne's respective
     directors and shareholders; (iii) the AbilityOne Acquisition Agreement
     includes a condition precedent to the consummation of the AbilityOne
     Acquisition providing that no material adverse

                                       29

<PAGE>

     change shall have occurred with respect to AbilityOne and its Subsidiaries
     taken as a whole since December 31, 2002; (iv) all required U.S.
     governmental approvals related to the AbilityOne Acquisition have been
     obtained and all related filings made and any applicable waiting periods
     shall have expired or been terminated, including those prescribed by the
     Hart-Scott-Rodino Antitrust Improvements Act, as amended; (v) the
     AbilityOne Acquisition shall close contemporaneously with the funding under
     this Agreement; (vi) no material breach, default or waiver of any term or
     provision of the AbilityOne Acquisition Agreement by the Borrower or any of
     its Subsidiaries, which are parties thereto, or, to the best of the
     Borrower's knowledge, the other parties thereto, has occurred (except for
     such breaches, defaults and waivers, if any, consented to in writing by the
     Agent) and no action has been taken by any competent authority which, in
     the reasonable judgment of the Agent and the Arrangers restrains, prevents
     or imposes any material adverse condition upon, or seeks to restrain,
     prevent or impose any material adverse condition upon, the AbilityOne
     Acquisition; and (vii) after giving effect to the AbilityOne Acquisition,
     the Borrower shall own, directly or indirectly, not less than one hundred
     percent of the capital stock of AbilityOne.

          4.1.10 Written money transfer instructions, in substantially the form
     of Exhibit D, addressed to the Agent and signed by an Authorized Officer,
     together with such other related money transfer authorizations as the Agent
     may have reasonably requested.

          4.1.11 The Agent shall have determined that (i) there is an absence of
     any material adverse change or disruption in primary or secondary loan
     syndication markets, financial markets or in capital markets generally that
     would likely impair syndication of the Loans hereunder, and (ii) the
     Borrower has fully cooperated with the Agent's syndication efforts,
     including, without limitation, by providing the Agent with information
     regarding the Borrower's and its Subsidiaries' operations and prospects and
     such other information as the Agent deems necessary to successfully
     syndicate the Loans hereunder.

          4.1.12 Evidence satisfactory to the Agent that the Existing Credit
     Agreement shall have been or shall simultaneously on the Closing Date be
     terminated (except for those provisions that expressly survive the
     termination thereof), all loans outstanding and other amounts owed to the
     lenders or agents thereunder shall have been, or shall simultaneously with
     the initial Advance hereunder, be paid in full, and all liens and security
     interests granted in connection therewith shall have been or shall
     simultaneously on the Closing Date be terminated.

          4.1.13 A certificate of value, solvency and other appropriate factual
     information in form and substance reasonably satisfactory to the Agent and
     Arrangers from the chief financial officer of the Borrower (on behalf of
     the Borrower and its Subsidiaries) in his or her representative capacity
     supporting the conclusions that as of the initial funding date the Borrower
     and its Subsidiaries on a consolidated basis are Solvent and will be
     Solvent subsequent to incurring the Indebtedness contemplated under the
     Loan Documents, will be able to pay its debts and liabilities as they
     become due and will not be left with unreasonably small working capital for
     general corporate purposes.

                                       30

<PAGE>

          4.1.14 Evidence satisfactory to the Agent that the Borrower has paid
     to the Agent and the Arrangers the fees agreed to in the fee letter dated
     August 26, 2003, among the Agent, the Arrangers and the Borrower.

          4.1.15 Such other documents as any Lender or its counsel may have
     reasonably requested, including, without limitation, those documents set
     forth in Exhibit G hereto.

     4.2. Initial Credit Extension. The Lenders shall not be required to make
the initial Credit Extension unless on the Funding Date:

          4.2.1 There exists no Default or Unmatured Default.

          4.2.2 The representations and warranties contained in Article V are
     true and correct as of the Funding Date except to the extent any such
     representation or warranty is stated to relate solely to an earlier date,
     in which case such representation or warranty shall have been true and
     correct on and as of such earlier date.

          4.2.3 All legal matters incident to the making of such Credit
     Extension shall be satisfactory to the Lenders and their counsel.

     Each Borrowing Notice with respect to each such Credit Extension shall
constitute a representation and warranty by the Borrower that the conditions
contained in Sections 4.2.1, 4.2.2 and 4.2.3 have been satisfied. Any Lender may
require a duly completed compliance certificate in substantially the form of
Exhibit B as a condition to making a Credit Extension.

                                   ARTICLE V

                         REPRESENTATIONS AND WARRANTIES

     The Borrower represents and warrants to each Lender and the Agent as of
each of (i) the Closing Date, (ii) the Funding Date (after giving effect to the
transactions contemplated by the Transaction Documents) and (iii) each other
date as required by Section 4.2:

     5.1. Existence and Standing. Each of the Borrower and its Subsidiaries is a
corporation, partnership (in the case of Subsidiaries only) or limited liability
company duly and properly incorporated or organized, as the case may be, validly
existing and (to the extent such concept applies to such entity) in good
standing under the laws of its jurisdiction of incorporation or organization,
(ii) has all requisite corporate, partnership or limited liability company power
and authority, as the case may be, to own, operate and encumber its Property and
(iii) is qualified to do business and is in good standing (to the extent such
concept applies to such entity) in all jurisdictions where the nature of the
business conducted by it makes such qualification necessary and where failure to
so qualify would reasonably be expected to have a Material Adverse Effect.

     5.2. Authorization and Validity. Each Credit Party has the requisite
corporate, partnership or limited liability company power and authority and
legal right to execute and deliver the Transaction Documents to which it is a
party and to perform its obligations thereunder. The execution and delivery by
each Credit Party of the Transaction Documents to which it is a party and the
performance of its obligations thereunder have been duly authorized

                                       31

<PAGE>

by proper corporate, partnership or limited liability company, as the case may
be, proceedings, and the Transaction Documents to which each Credit Party is a
party constitute legal, valid and binding obligations of such Credit Party
enforceable against such Credit Party in accordance with their terms, except as
enforceability may be limited by (i) bankruptcy, insolvency, fraudulent
conveyances, reorganization or similar laws relating to or affecting the
enforcement of creditors' rights generally; (ii) general equitable principles
(whether considered in a proceeding in equity or at law); and (iii) requirements
of reasonableness, good faith and fair dealing.

     5.3. No Conflict; Government Consent. Neither the execution and delivery by
any Credit Party of the Transaction Documents to which it is a party, nor the
consummation by such Credit Party of the transactions therein contemplated, nor
compliance by such Credit Party with the provisions thereof will violate (i) any
applicable law, rule, regulation, order, writ, judgment, injunction, decree or
award binding on such Credit Party or (ii) such Credit Party's articles or
certificate of incorporation, partnership agreement, certificate of partnership,
articles or certificate of organization, by-laws, or operating agreement or
other management agreement, as the case may be, or (iii) the provisions of any
indenture, instrument or agreement to which such Credit Party is a party or is
subject, or by which it, or its Property, is bound, or conflict with, or
constitute a default under, or result in, or require, the creation or imposition
of any Lien in, of or on the Property of such Credit Party pursuant to the terms
of, any such indenture, instrument or agreement. No order, consent,
adjudication, approval, license, authorization, or validation of, or filing,
recording or registration with, or exemption by, or other action in respect of
any governmental or public body or authority, or any subdivision thereof, which
has not been obtained by any Credit Party, is required to be obtained by such
Credit Party in connection with the execution and delivery of the Transaction
Documents, the borrowings under this Agreement, the payment and performance by
the Credit Parties of the Obligations, the consummation of the AbilityOne
Acquisition or the legality, validity, binding effect or enforceability of any
of the Transaction Documents.

     5.4. Financial Statements. The April 26, 2003 consolidated financial
statements of the Borrower and its Subsidiaries and, to the best of the
Borrower's knowledge, the December 31, 2002 consolidated financial statements of
AbilityOne and its Subsidiaries, in each case, heretofore delivered to the Agent
and the Lenders were prepared in accordance with generally accepted accounting
principles in effect on the date such statements were prepared and fairly
present the consolidated financial condition and operations of the Borrower and
its Subsidiaries and, to the best of the Borrower's knowledge, AbilityOne and
its Subsidiaries, as applicable, at such date and the consolidated results of
their operations for the period then ended.

     5.5. Material Adverse Change. Since April 26, 2003, there has been no
change in the business, Property, condition (financial or otherwise), operations
or results of operations, performance or prospects of the Borrower and its
Subsidiaries taken as a whole which could reasonably be expected to have a
Material Adverse Effect. To the best of the Borrower's knowledge, since December
31, 2002, there has been no change in the business, Property, condition
(financial or otherwise), operations or results of operations, performance or
prospects of AbilityOne and its Subsidiaries taken as a whole which could
reasonably be expected to have a Material Adverse Effect.

                                       32

<PAGE>

     5.6. Taxes. The Borrower and the Subsidiaries have filed all United States
federal tax returns and all other tax returns which are required to be filed and
have paid all taxes due pursuant to said returns or pursuant to any assessment
received by the Borrower or any Subsidiaries, except in respect of such taxes,
if any, as are being contested in good faith and as to which adequate reserves
have been provided in accordance with Agreement Accounting Principles and as to
which no Lien exists (except as permitted by Section 6.15.1) and as to which the
failure to file such return or pay such taxes could not reasonably be expected
to have a Material Adverse Effect. The United States income tax returns of the
Borrower and the Subsidiaries (other than AbilityOne and its Subsidiaries) have
been audited by the Internal Revenue Service through the fiscal year ended April
25, 1998. No liens have been filed and no claims are being asserted with respect
to such taxes. The charges, accruals and reserves on the books of the Borrower
and the Subsidiaries in respect of any taxes or other governmental charges are
adequate.

     5.7. Litigation and Contingent Obligations. There is no litigation,
arbitration, governmental investigation, proceeding or inquiry pending or, to
the knowledge of any of their officers, threatened against or affecting the
Borrower or any Subsidiaries which could reasonably be expected to have a
Material Adverse Effect or which seeks to prevent, enjoin or delay the making of
any Loans or the consummation of the AbilityOne Acquisition. Other than any
liability incident to any litigation, arbitration or proceeding which could not
reasonably be expected to have a Material Adverse Effect, the Borrower and its
Subsidiaries has no material contingent obligations required to be reflected on
the Borrower's consolidated balance sheet in accordance with generally accepted
accounting principles and not provided for or disclosed in the financial
statements referred to in Section 5.4.

     5.8. Subsidiaries. Schedule 5.8 contains an accurate list of all
Subsidiaries of the Borrower as of the Funding Date (after giving effect to the
AbilityOne Acquisition), setting forth their respective jurisdictions of
organization and the percentage of their respective capital stock or other
ownership interests owned by the Borrower or other Subsidiaries. All of the
issued and outstanding shares of capital stock or other ownership interests of
such Subsidiaries have been (to the extent such concepts are relevant with
respect to such ownership interests) duly authorized and issued and are fully
paid and non-assessable.

     5.9. ERISA. The Unfunded Liabilities of all Single Employer Plans do not in
the aggregate exceed $10,000,000. Neither the Borrower nor any other member of
the Controlled Group has incurred, or is reasonably expected to incur, pursuant
to Section 4201 of ERISA, any withdrawal liability to Multiemployer Plans. Each
Plan complies in all material respects with all applicable requirements of law
and regulations. No Reportable Event has occurred with respect to any Plan.
Neither the Borrower nor any other member of the Controlled Group has withdrawn
from any Multiemployer Plan within the meaning of Title IV of ERISA or initiated
steps to do so, and, to the knowledge of the Borrower, no steps have been taken
to reorganize or terminate, within the meaning of Title IV of ERISA, any
Multiemployer Plan.

     5.10. Accuracy of Information. The information, exhibits or reports
furnished by the Borrower or any Subsidiary to the Agent or to any Lender in
connection with the negotiation of, or compliance with, the Transaction
Documents do not contain any material misstatement of fact or omit to state a
material fact or any fact necessary to make the statements contained therein, in

                                       33

<PAGE>

light of the circumstances under which they were made, not misleading. The
projected and pro-forma financial information furnished by or on behalf of any
Credit Party to the Agent or any Lender in connection with the negotiation of,
or compliance with, the Transaction Documents, were prepared in good faith based
upon assumptions believed to be reasonable at the time.

     5.11. Regulation U. Neither the Borrower nor any Subsidiary is engaged
principally, or as one of its important activities, in the business of extending
credit for the purpose, whether immediate, incidental or ultimate of buying or
carrying margin stock (as defined in Regulation U), and after applying the
proceeds of each Credit Extension, margin stock (as defined in Regulation U)
constitutes less than 25% of the value of those assets of the Borrower and the
Subsidiaries which are subject to any limitation on sale, pledge, or any other
restriction hereunder.

     5.12. Material Agreements. Neither the Borrower nor any Subsidiary is a
party to any agreement or instrument or subject to any charter or other
corporate restriction which could reasonably be expected to have a Material
Adverse Effect. Neither the Borrower nor any Subsidiary is in default in the
performance, observance or fulfillment of any of the obligations, covenants or
conditions contained in (i) any agreement or instrument to which it is a party,
which default could reasonably be expected to have a Material Adverse Effect or
(ii) any agreement or instrument evidencing or governing Indebtedness.

     5.13. Compliance With Laws. The Borrower and the Subsidiaries have complied
in all material respects with all applicable statutes, rules, regulations,
orders and restrictions of any domestic or foreign government or any
instrumentality or agency thereof having jurisdiction over the conduct of their
respective businesses or the ownership of their respective Property except for
any failure to comply with any of the foregoing which could not reasonably be
expected to have a Material Adverse Effect.

     5.14. Ownership of Properties. The Borrower and the Subsidiaries have good
title, free of all Liens other than those permitted by Section 6.15, to all of
the assets reflected in the Borrower's most recent consolidated financial
statements provided to the Agent, as owned by the Borrower and the Subsidiaries
except (i) assets sold or otherwise transferred as permitted under Section 6.12
and (ii) to the extent the failure to hold such title could not reasonably be
expected to have a Material Adverse Effect.

     5.15. Plan Assets; Prohibited Transactions. None of the Credit Parties is
an entity deemed to hold "plan assets" within the meaning of 29 C.F.R. (S)
2510.3-101 of an employee benefit plan (as defined in Section 3(3) of ERISA)
which is subject to Title I of ERISA or any plan (within the meaning of Section
4975 of the Code), and assuming the accuracy of the representations and
warranties made in Section 9.12 and in any assignment made pursuant to Section
12.3.3, neither the execution of this Agreement nor the making of Loans
hereunder gives rise to a prohibited transaction within the meaning of Section
406 of ERISA or Section 4975 of the Code.

     5.16. Environmental Matters. In the ordinary course of its business, the
officers of the Borrower and the Subsidiaries consider the effect of
Environmental Laws on the business of the Borrower and the Subsidiaries, in the
course of which they identify and evaluate potential risks

                                       34

<PAGE>

and liabilities accruing to the Borrower or any Subsidiary due to Environmental
Laws. On the basis of this consideration, the Borrower has concluded that
Environmental Laws cannot reasonably be expected to have a Material Adverse
Effect. Neither the Borrower nor any Subsidiary has received any notice to the
effect that its operations are not in material compliance with any of the
requirements of applicable Environmental Laws or are the subject of any federal
or state investigation evaluating whether any remedial action is needed to
respond to a release of any toxic or hazardous waste or substance into the
environment, which non-compliance or remedial action could reasonably be
expected to have a Material Adverse Effect.

     5.17. Investment Company Act. Neither the Borrower nor any Subsidiary is an
"investment company" or a company "controlled" by an "investment company",
within the meaning of the Investment Company Act of 1940, as amended.

     5.18. Public Utility Holding Company Act. Neither the Borrower nor any
Subsidiary is a "holding company", or a "subsidiary company" of a "holding
company", or an "affiliate" of a "holding company" or of a "subsidiary company"
of a "holding company", as such terms are defined in the Public Utility Holding
Company Act of 1935, as amended.

     5.19. Insurance. The Borrower maintains, and has caused each Subsidiary to
maintain, with financially sound and reputable insurance companies insurance on
all their Property in such amounts, subject to such deductibles and
self-insurance retentions and covering such properties and properties and risks
as is consistent with sound business practice.

     5.20. Solvency. After giving effect to (i) the Credit Extensions to be made
on the Funding Date or such other date as Credit Extensions requested hereunder
are made, (ii) the other transactions contemplated by this Agreement and the
other Transaction Documents, and (iii) the payment and accrual of all
transaction costs with respect to the foregoing, the Borrower and its
Subsidiaries taken as a whole are Solvent.

     5.21. No Default or Unmatured Default. No Default or Unmatured Default has
occurred and is continuing.

     5.22. Reportable Transaction. The Borrower does not intend to treat the
Advances and related transactions as being a "reportable transaction" (within
the meaning of the Treasury Regulation Section 1.6011-4). In the event the
Borrower determines to take any action inconsistent with such intention, it will
promptly notify the Agent thereof. The Borrower acknowledges that one or more of
the Lenders may treat its Advances as part of a transaction that is subject to
Treasury Regulation Section 1.6011-4 or Section 301.6112-1, and the Agent and
such Lender or Lenders, as applicable, may file such IRS forms or maintain such
lists and other records as they may determine is required by such Treasury
Regulations.

     5.23. Post-Retirement Benefits. The present value of the expected cost of
post-retirement medical and insurance benefits payable by the Borrower and its
Subsidiaries to its employees and former employees, as estimated by the Borrower
in accordance with procedures and assumptions deemed reasonable by the Required
Lenders is zero.

     5.24. AbilityOne Acquisition. (i) All conditions precedent to the
consummation of the AbilityOne Acquisition have been satisfied or waived by the
Borrower and all of the

                                       35

<PAGE>

representations and warranties in the AbilityOne Acquisition Agreement are
accurate in all material respects with respect to the Borrower and, to the best
of the Borrower's knowledge, accurate in all material respects with respect to
AbilityOne, in each case, as of the date on which the AbilityOne Acquisition is
consummated and the AbilityOne Acquisition Agreement is in full force and
effect; (ii) the AbilityOne Acquisition has been approved by all necessary
corporate action of the Borrower's and, to the best of the Borrower's knowledge,
AbilityOne's respective directors and shareholders; (iii) the AbilityOne
Acquisition Agreement includes a condition precedent to the consummation of the
AbilityOne Acquisition providing that no material adverse change shall have
occurred with respect to AbilityOne and its Subsidiaries taken as a whole since
December 31, 2002; (iv) all required U.S. governmental approvals related to the
AbilityOne Acquisition have been obtained and all related filings made and any
applicable waiting periods shall have expired or been terminated, including
those prescribed by the Hart-Scott-Rodino Antitrust Improvements Act, as
amended; (v) no material breach, default or waiver of any term or provision of
the AbilityOne Acquisition Agreement by the Borrower or any of its Subsidiaries,
which are parties thereto, or, to the best of the Borrower's knowledge, the
other parties thereto, has occurred (except for such breaches, defaults and
waivers, if any, consented to in writing by the Agent) and no action has been
taken by any competent authority which restrains, prevents or imposes any
material adverse condition upon, or seeks to restrain, prevent or impose any
material adverse condition upon, the AbilityOne Acquisition; and (vi) after
giving effect to the AbilityOne Acquisition, the Borrower shall own, directly or
indirectly, not less than one hundred percent of the capital stock of
AbilityOne.

                                   ARTICLE VI

                                    COVENANTS

     During the term of this Agreement, unless the Required Lenders shall
otherwise consent in writing:

     6.1. Financial Reporting. The Borrower will maintain, for itself and each
Subsidiary, a system of accounting established and administered in accordance
with generally accepted accounting principles, and furnish to the Lenders:

          6.1.1 Within 90 days after the close of each of the Borrower's fiscal
     years, financial statements prepared in accordance with Agreement
     Accounting Principles on a consolidated basis, for itself and its
     Subsidiaries, including balance sheets as of the end of such period,
     statements of income and statements of cash flows, accompanied by (a) an
     audit report, unqualified as to scope, of a nationally recognized firm of
     independent public accountants or other independent public accountants
     reasonably acceptable to the Required Lenders; (b) any management letter
     prepared by said accountants, and (c) a certificate of said accountants
     that, in the course of their examination necessary for their certification
     of the foregoing, they have obtained no knowledge of any Default or
     Unmatured Default, or if, in the opinion of such accountants, any Default
     or Unmatured Default shall exist, stating the nature and status thereof.

          6.1.2 Within 45 days after the close of the first three quarterly
     periods of each of the Borrower's fiscal years, for the Borrower and its
     Subsidiaries, consolidated unaudited

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<PAGE>

     balance sheets as at the close of each such period and consolidated
     statements of income and a statement of cash flows for the period from the
     beginning of such fiscal year to the end of such quarter, all certified as
     to fairness of presentation, compliance with Agreement Accounting
     Principles and consistency by its chief financial officer or treasurer.

          6.1.3 Together with the financial statements required under Sections
     6.1.1 and 6.1.2, a compliance certificate in substantially the form of
     Exhibit B signed by its chief financial officer or treasurer showing the
     calculations necessary to determine compliance with this Agreement, which
     certificate shall also state that no Default or Unmatured Default exists,
     or if any Default or Unmatured Default exists, stating the nature and
     status thereof, and a certificate executed and delivered by the chief
     executive officer or chief financial officer stating that the Borrower and
     each of its respective principal officers are in compliance with all
     requirements of Section 302 and Section 906 of the Sarbanes-Oxley Act of
     2002 and all rules and regulations related thereto.

          6.1.4 Within 120 days after the close of each of the Borrower's fiscal
     years, a copy of the plan and forecast (including a projected balance
     sheet, income statements and funds flow statements, and any narrative
     prepared with respect thereto) of the Borrower and its Subsidiaries for the
     upcoming fiscal year prepared in such detail as shall be reasonably
     satisfactory to the Agent.

          6.1.5 Within 270 days after the close of each fiscal year of the
     Borrower, if applicable, a copy of the actuarial report showing the
     Unfunded Liabilities of each Single Employer Plan as of the valuation date
     occurring in such fiscal year, certified by an actuary enrolled under
     ERISA.

          6.1.6 As soon as possible and in any event within 10 days after the
     Borrower knows that any Reportable Event has occurred with respect to any
     Plan, a statement, signed by the chief financial officer or treasurer of
     the Borrower, describing said Reportable Event and the action which the
     Borrower proposes to take with respect thereto.

          6.1.7 As soon as possible and in any event within 10 days after
     receipt by the Borrower or any Subsidiary, a copy of (a) any notice or
     claim to the effect that the Borrower or any Subsidiary is or may be liable
     to any Person as a result of the release by the Borrower, any Subsidiary,
     or any other Person of any toxic or hazardous waste or substance into the
     environment, and (b) any notice alleging any violation of any Environmental
     Law by the Borrower or any Subsidiary, which, in either case, could
     reasonably be expected to have a Material Adverse Effect.

          6.1.8 Promptly upon the furnishing thereof to the shareholders of the
     Borrower, copies of all financial statements, reports and proxy statements
     so furnished.

          6.1.9 Promptly upon the filing thereof, copies of all registration
     statements and annual, quarterly, monthly or other regular reports which
     the Borrower or any Subsidiary files with the SEC, including, without
     limitation, all certifications and other filings

                                       37

<PAGE>

     required by Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002
     and all rules and regulations related thereto.

          6.1.10 Such other information (including non-financial information) as
     the Agent or any Lender may from time to time reasonably request.

     6.2. Use of Proceeds. The Borrower will, and will cause each Subsidiary to,
use the proceeds of the Credit Extensions solely to finance the AbilityOne
Acquisition (including repayment of Indebtedness outstanding under the Existing
Credit Agreement and to pay fees and expenses incurred in connection with this
Agreement and the AbilityOne Acquisition). The Borrower shall use the proceeds
of Credit Extensions in compliance with all applicable legal and regulatory
requirements and any such use shall not result in a violation of any such
requirements, including, without limitation, Regulation U and X, the Securities
Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended,
and the regulations promulgated thereunder.

     6.3. Notice of Default. Within five (5) Business Days after an Authorized
Officer becomes aware thereof, the Borrower will, and will cause each Subsidiary
to, give notice in writing to the Lenders of the occurrence of (i) any Default
or Unmatured Default, (ii) the occurrence of any Off-Balance Sheet Trigger Event
or any material default under or with respect to any Material Indebtedness or
any material service agreement to which the Borrower or any Subsidiary is a
party (together with copies of all default notices, if any, pertaining thereto)
and (iii) any other development, financial or otherwise, which could reasonably
be expected to have a Material Adverse Effect.

     6.4. Conduct of Business. The Borrower will, and will cause each Subsidiary
to, carry on and conduct its business in substantially the same manner and in
substantially the same fields of enterprise as conducted by the Borrower or its
Subsidiaries as of the Closing Date, and do all things necessary to remain duly
incorporated or organized, validly existing and (to the extent such concept
applies to such entity) in good standing as a domestic corporation, partnership
or limited liability company in its jurisdiction of incorporation or
organization, as the case may be, as in effect on the Closing Date, and, except
to the extent failure to do so could not reasonably be expected to have a
Material Adverse Effect, maintain all requisite authority to conduct its
business in each jurisdiction in which its business is conducted.

     6.5. Taxes. The Borrower will, and will cause each Subsidiary to, timely
file complete and correct United States federal and applicable foreign, state
and local tax returns required by law and pay when due all taxes, assessments
and governmental charges and levies upon it or its income, profits or Property,
except (i) those which are being contested in good faith by appropriate
proceedings and with respect to which adequate reserves have been set aside in
accordance with Agreement Accounting Principles and (ii) those taxes,
assessments, charges and levies which by reason of the amount involved or the
remedies available to the applicable taxing authority could not reasonably be
expected to have a Material Adverse Effect.

     6.6. Insurance. The Borrower will, and will cause each Subsidiary to,
maintain with financially sound and reputable insurance companies insurance on
all their Property in such amounts, subject to such deductibles and
self-insurance retentions, and covering such properties

                                       38

<PAGE>

and risks as is consistent with sound business practice, and the Borrower will
furnish to any Lender upon request full information as to the insurance carried.

     6.7. Compliance with Laws. The Borrower will, and will cause each
Subsidiary to, comply with all laws, rules, regulations, orders, writs,
judgments, injunctions, decrees or awards to which it may be subject including,
without limitation, all Environmental Laws and Section 302 and Section 906 of
the Sarbanes-Oxley Act of 2002, except where the failure to do so, individually
or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect.

     6.8. Maintenance of Properties. Subject to Section 6.12, the Borrower will,
and will cause each Subsidiary to, do all things necessary to maintain,
preserve, protect and keep its Property used in the operation of its business in
good repair, working order and condition (ordinary wear and tear excepted), and
make all necessary and proper repairs, renewals and replacements so that its
business carried on in connection therewith may be properly conducted at all
times, except where the failure to do so, individually or in the aggregate,
could not reasonably be expected to have a Material Adverse Effect.

     6.9. Inspection; Keeping of Books and Records. The Borrower will, and will
cause each Subsidiary to, permit the Agent and the Lenders, by their respective
representatives and agents, to inspect any of the Property, books and financial
records of the Borrower and each Subsidiary, to examine and make copies of the
books of accounts and other financial records of the Borrower and each
Subsidiary, and to discuss the affairs, finances and accounts of the Borrower
and each Subsidiary with, and to be advised as to the same by, their respective
officers at such reasonable times and intervals as the Agent or any Lender may
designate. The Borrower shall keep and maintain, and cause each of the
Subsidiaries to keep and maintain, in all material respects, complete, accurate
and proper books of record and account in which entries in conformity with
Agreement Accounting Principles shall be made of all dealings and transactions
in relation to their respective businesses and activities. If a Default has
occurred and is continuing, the Borrower, upon the Agent's request, shall turn
over copies of any such records to the Agent or its representatives.

     6.10. Dividends. The Borrower will not, nor will it permit any Subsidiary
to, declare or pay any dividend or make any distribution on its capital stock
(other than dividends payable in its own capital stock) or redeem, repurchase or
otherwise acquire or retire any of its capital stock at any time outstanding,
except that (i) any Subsidiary of the Borrower may declare and pay dividends or
make distributions to the Borrower or to a Guarantor and (ii) the Borrower may
declare and pay dividends on its capital stock, and may repurchase shares of its
capital stock pursuant to the share repurchase program described in note 11 to
its audited financial statements for the year ended April 26, 2003, provided
that no Default or Unmatured Default shall exist before or after giving effect
to such dividends or be created as a result thereof.

     6.11. Merger. The Borrower will not, nor will it permit any Subsidiary to,
merge or consolidate with or into any other Person, except that:

          6.11.1 A Guarantor may merge into (i) the Borrower, provided the
     Borrower shall be the continuing or surviving corporation, or (ii) another
     Guarantor or any other

                                       39

<PAGE>

     Person that becomes a Guarantor promptly upon the completion of the
     applicable merger or consolidation.

          6.11.2 A Subsidiary that is not a Guarantor and not required to be a
     Guarantor may merge or consolidate with or into the Borrower or any
     Wholly-Owned Subsidiary.

          6.11.3 Any Subsidiary of the Borrower may consummate any merger or
     consolidation in connection with any Permitted Acquisition.

     6.12. Sale of Assets. The Borrower will not, nor will it permit any
Subsidiary to, lease, sell, transfer or otherwise dispose of its Property to any
other Person, except:

          6.12.1 Sales of inventory in the ordinary course of business.

          6.12.2 A disposition of assets (i) by the Borrower or any Subsidiary
     to any Credit Party, (ii) by a Subsidiary that is not a Guarantor and not
     required to be a Guarantor to any other Subsidiary and (iii) subject to
     Section 6.24, by any Credit Party to any Foreign Subsidiary.

          6.12.3 A disposition of obsolete property, property no longer used in
     the business of the Borrower or any Subsidiary or other assets in the
     ordinary course of business of the Borrower or any Subsidiary.

          6.12.4 So long as no Default or Unmatured Default has occurred, a
     disposition of assets for an aggregate purchase price of up to $270,000,000
     outstanding at any time pursuant to, and in accordance with, the
     Receivables Purchase Facilities.

          6.12.5 The license or sublicense of software, trademarks, and other
     intellectual property in the ordinary course of business which do not
     materially interfere with the business of the Borrower or any Subsidiary.

          6.12.6 Consignment arrangements (as consignor or consignee) or similar
     arrangements for the sale of goods in the ordinary course of business and
     consistent with the past practices of the Borrower and the Subsidiaries.

          6.12.7 Leases, sales or other dispositions of its Property that (i)
     are for consideration consisting at least seventy-five percent (75%) of
     cash, (ii) are for not less than fair market value, and (iii) together with
     all other Property of the Borrower and the Subsidiaries previously leased,
     sold or disposed of (other than dispositions otherwise permitted by this
     Section 6.12) as permitted by this Section 6.12.7 during the twelve-month
     period ending with the month in which any such lease, sale or other
     disposition occurs, do not constitute in the aggregate a Substantial
     Portion of the Property of the Borrower and its Subsidiaries.

          6.13. Investments and Acquisitions. The Borrower will not, nor will it
     permit any Subsidiary to, make or suffer to exist any Investments
     (including without limitation, loans and advances to, and other Investments
     in, Subsidiaries), or to create any Subsidiary or to become or

                                       40

<PAGE>

remain a partner in any partnership or joint venture, or to make any Acquisition
of any Person, except:

          6.13.1 Cash and Cash Equivalent Investments and other Investments that
     comply with the Borrower's investment policy as in effect on the Closing
     Date, a copy of which the Borrower has provided to the Agent.

          6.13.2 Existing Investments in Subsidiaries and other Investments in
     existence on the Closing Date and described in Schedule 6.13 and any
     renewal or extension of any such Investments that does not increase the
     amount of the Investment being renewed or extended as determined as of such
     date of renewal or extension.

          6.13.3 Investments in trade receivables or received in connection with
     the bankruptcy or reorganization of suppliers and customers and in
     settlement of delinquent obligations of, and other disputes with, customers
     and suppliers arising in the ordinary course of business.

          6.13.4 Investments consisting of intercompany loans permitted under
     Section 6.14.6.

          6.13.5 The AbilityOne Acquisition (subject to the conditions set forth
     in this Agreement) and all other Acquisitions meeting the following
     requirements or otherwise approved by the Required Lenders (each such
     Acquisition including the AbilityOne Acquisition constituting a "Permitted
     Acquisition"):

     (i)  as of the date of the consummation of such Acquisition, no Default or
          Unmatured Default shall have occurred and be continuing or would
          result from such Acquisition, and the representation and warranty
          contained in Section 5.11 shall be true both before and after giving
          effect to such Acquisition;

     (ii) such Acquisition is consummated on a non-hostile basis pursuant to a
          negotiated acquisition agreement approved by the board of directors or
          other applicable governing body of the seller or entity to be
          acquired, and no material challenge to such Acquisition (excluding the
          exercise of appraisal rights) shall be pending or threatened in
          writing by any shareholder or director of the seller or entity to be
          acquired;

     (iii) the business to be acquired in such Acquisition is similar or related
          to one or more of the lines of business in which the Borrower and the
          Subsidiaries are engaged on the Closing Date;

     (iv) as of the date of the consummation of such Acquisition, all material
          governmental and corporate approvals required in connection therewith
          shall have been obtained;

     (v)  the Purchase Price for each such Acquisition together with the
          Purchase Price of all other Permitted Acquisitions shall not exceed an
          amount equal to

                                       41

<PAGE>

          $100,000,000 beginning on the Closing Date and ending on the Facility
          Termination Date;

     (vi) with respect to each Permitted Acquisition with respect to which the
          Purchase Price shall be greater than $30,000,000, not less than
          fifteen (15) days prior to the consummation of such Permitted
          Acquisition, the Borrower shall have delivered to the Agent a pro
          forma consolidated balance sheet, income statement and cash flow
          statement of the Borrower and the Subsidiaries (the "Acquisition Pro
          Forma"), based on the Borrower's most recent financial statements
          delivered pursuant to Section 6.1.1 and using historical financial
          statements for the acquired entity provided by the seller(s) or which
          shall be complete and shall fairly present, in all material respects,
          the financial condition and results of operations and cash flows of
          the Borrower and its Subsidiaries in accordance with Agreement
          Accounting Principles, but taking into account such Permitted
          Acquisition and the repayment of any Indebtedness in connection with
          such Permitted Acquisition, and such Acquisition Pro Forma shall
          reflect that, on a pro forma basis, the Borrower would have been in
          compliance with the financial covenants set forth in Sections 6.20,
          6.21 and 6.22 for the four fiscal quarter period reflected in the
          compliance certificate most recently delivered to the Agent pursuant
          to Section 6.1.3 prior to the consummation of such Permitted
          Acquisition (giving effect to such Permitted Acquisition as if made on
          the first day of such period); and

     (vii) prior to (or, with respect to clause (A) below, concurrently with)
          the consummation of each such Permitted Acquisition, the Borrower
          shall deliver to the Agent a documentation, information and
          certification package in form and substance acceptable to the Agent,
          including, without limitation;

          (A)  a supplement to the Guaranty if the Permitted Acquisition is an
               Acquisition of equities and the target company will not be merged
               with the Borrower or any existing Domestic Subsidiary;

          (B)  the financial statements of the target entity together with any
               pro forma financial statements, projections, forecasts and
               budgets prepared by the Borrower in connection therewith;

          (C)  a copy of the acquisition agreement for such Acquisition,
               together with drafts of the material schedules thereto;

          (D)  a copy of all documents, instruments and agreements with respect
               to any Indebtedness to be incurred or assumed in connection with
               such Acquisition; and

          (E)  such other documents or information as shall be reasonably
               requested by the Agent or any Lender.

          6.13.6 Investments constituting promissory notes and other non-cash
     consideration received in connection with any transfer of assets permitted
     under Section 6.12.7.

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<PAGE>

          6.13.7 Customer advances in the ordinary course of business.

          6.13.8 Extensions of customer or trade credit in the ordinary course
     of business consistent with the Borrower's and the Subsidiaries' past
     practices.

          6.13.9 Investments constituting Rate Management Transactions permitted
     under Section 6.17.

          6.13.10 Subject to Section 6.24, the creation or formation of new
     Subsidiaries (as opposed to the Acquisition of new Subsidiaries), so long
     as all applicable requirements under Section 6.23 shall have been, or
     concurrently therewith are, satisfied.

          6.13.11 Investments constituting expenditures for any purchase or
     other acquisition of any asset which would be classified as a fixed or
     capital asset on a consolidated balance sheet of the Borrower and its
     Subsidiaries prepared in accordance with Agreement Accounting Principles to
     the extent otherwise permitted under this Agreement.

          6.13.12 Investments by (i) the Borrower and its Subsidiaries in any
     Credit Party, (ii) any Subsidiary which is not a Guarantor and is not
     required to be a Guarantor in any other Subsidiary which is not a Guarantor
     and is not required to be a Guarantor and (iii) subject to Section 6.24,
     any Credit Party in any Foreign Subsidiary.

          6.13.13 Deposits made in the ordinary course of business and referred
     to in Sections 6.15.4, 6.15.6 and 6.15.7.

          6.13.14 Investments in connection with any Receivables Purchase
     Facility permitted under this Agreement.

          6.13.15 Additional Investments in an amount not to exceed $10,000,000
     at any one time outstanding.

     6.14. Indebtedness. The Borrower will not, nor will it permit any
Subsidiary to, create, incur or suffer to exist any Indebtedness, except:

          6.14.1 The Obligations.

          6.14.2 Indebtedness existing on the Closing Date and described in
     Schedule 6.14, and any replacement, renewal, refinancing or extension of
     any such Indebtedness that (i) does not exceed the aggregate principal
     amount (plus accrued interest and any applicable premium and associated
     fees and expenses) of the Indebtedness being replaced, renewed, refinanced
     or extended, (ii) does not have a Weighted Average Life to Maturity at the
     time of such replacement, renewal, refinancing or extension that is less
     than the Weighted Average Life to Maturity of the Indebtedness being
     replaced, renewed, refinanced or extended and (iii) does not rank at the
     time of such replacement, renewal, refinancing or extension senior to the
     Indebtedness being replaced, renewed, refinanced or extended.

          6.14.3 Indebtedness arising under Rate Management Transactions;

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<PAGE>

          6.14.4 Amounts owing under the Receivables Purchase Facilities, the
     principal amount of which shall not exceed $270,000,000 in the aggregate at
     any time.

          6.14.5 Secured or unsecured purchase money Indebtedness (including
     Capitalized Leases) incurred by the Borrower or any Subsidiary after the
     Closing Date to finance the acquisition of assets used in its business, if
     (1) at the time of such incurrence, no Default or Unmatured Default has
     occurred and is continuing or would result from such incurrence, (2) such
     Indebtedness does not exceed the lower of the fair market value or the cost
     of the applicable fixed assets on the date acquired, (3) such Indebtedness
     does not exceed the lower of the fair market value or the costs of the
     applicable fixed assets on the date acquired, (4) such Indebtedness does
     not exceed $10,000,000 in the aggregate outstanding at any time, and (5)
     any Lien securing such Indebtedness is permitted under Section 6.15 (such
     Indebtedness being referred to herein as "Permitted Purchase Money
     Indebtedness").

          6.14.6 Indebtedness arising from intercompany loans and advances made
     by (i) the Borrower or any Subsidiary to any Credit Party, (ii) any
     Subsidiary that is not a Guarantor to any other Subsidiary that is not a
     Guarantor or (iii) subject to Section 6.24, any Credit Party to any Foreign
     Subsidiary; provided that all such Indebtedness shall be expressly
     subordinated to the Obligations.

          6.14.7 Indebtedness incurred or assumed by the Borrower or any
     Subsidiary in connection with a Permitted Acquisition but not created in
     contemplation of such event.

          6.14.8 Indebtedness constituting Contingent Obligations otherwise
     permitted by Section 6.19.

          6.14.9 Indebtedness under (i) performance bonds and surety bonds and
     (ii) bank overdrafts outstanding for not more than two (2) Business Days,
     in each case incurred in the ordinary course of business.

          6.14.10 To the extent the same constitutes Indebtedness, obligations
     in respect of earn-out arrangements permitted pursuant to a Permitted
     Acquisition.

          6.14.11 Additional Indebtedness in an aggregate principal amount in
     Dollars not to exceed $10,000,000 at any time.

     6.15. Liens. The Borrower will not, nor will it permit any Subsidiary to,
create, incur, or suffer to exist any Lien in, of or on the Property of the
Borrower or any Subsidiary, except:

          6.15.1 Liens, if any, securing Obligations.

          6.15.2 Liens for taxes, assessments or governmental charges or levies
     on its Property if the same shall not at the time be delinquent or
     thereafter can be paid without penalty, or are being contested in good
     faith and by appropriate proceedings and for which adequate reserves in
     accordance with Agreement Accounting Principles shall have been set aside
     on its books.

                                       44

<PAGE>

          6.15.3 Liens imposed by law, such as landlords', wage earners',
     carriers', warehousemen's and mechanics' liens and other similar liens
     arising in the ordinary course of business which secure payment of
     obligations not more than 45 days past due or which are being contested in
     good faith by appropriate proceedings and for which adequate reserves in
     accordance with Agreement Accounting Principles shall have been set aside
     on its books.

          6.15.4 Liens arising out of pledges or deposits under worker's
     compensation laws, unemployment insurance, old age pensions, or other
     social security or retirement benefits, or similar legislation.

          6.15.5 Liens existing on the Closing Date and described in Schedule
     6.15.

          6.15.6 Deposits securing liability to insurance carriers under
     insurance or self-insurance arrangements.

          6.15.7 Deposits to secure the performance of bids, trade contracts
     (other than for borrowed money), leases, statutory obligations, surety and
     appeal bonds, performance bonds and other obligations of a like nature
     incurred in the ordinary course of business.

          6.15.8 Easements, reservations, rights-of-way, restrictions, survey
     exceptions and other similar encumbrances as to real property of the
     Borrower and the Subsidiaries which customarily exist on properties of
     corporations engaged in similar activities and similarly situated and which
     are not material in amount and that do not materially interfere with the
     conduct of the business of the Borrower or such Subsidiary conducted at the
     property subject thereto.

          6.15.9 Liens arising by reason of any judgment, decree or order of any
     court or other governmental authority, but only to the extent and for an
     amount and for a period not resulting in a Default under Section 7.8.

          6.15.10 Liens arising in connection with a Receivables Purchase
     Facility permitted under Section 6.14.4.

          6.15.11 Liens existing on any specific fixed asset of any Subsidiary
     of the Borrower at the time such Subsidiary becomes a Subsidiary and not
     created in contemplation of such event.

          6.15.12 Liens on any specific fixed asset securing Indebtedness
     incurred or assumed for the purpose of financing or refinancing all or any
     part of the cost of acquiring or constructing such asset; provided that
     such Lien attaches to such asset concurrently with or within six (6) months
     after the acquisition or completion or construction thereof.

          6.15.13 Liens existing on any specific fixed asset of any Subsidiary
     of the Borrower at the time such Subsidiary is merged or consolidated with
     or into the Borrower or any Subsidiary and not created in contemplation of
     such event.

                                       45

<PAGE>

          6.15.14 Liens existing on any specific fixed asset prior to the
     acquisition thereof by the Borrower or any Subsidiary and not created in
     contemplation thereof; provided that such Liens do not encumber any other
     property or assets, other than improvements thereon and proceeds thereof.

          6.15.15 Liens arising out of the refinancing, extension, renewal or
     refunding of any Indebtedness secured by any Lien permitted under Sections
     6.15.5 and 6.15.11 through 6.15.14; provided that (i) such Indebtedness is
     not secured by any additional assets, other than improvements thereon and
     proceeds thereof, and (ii) the amount of such Indebtedness secured by any
     such Lien is not increased.

          6.15.16 Liens securing Permitted Purchase Money Indebtedness; provided
     that such Liens shall not apply to any property of the Borrower or any
     Subsidiary other than that purchased with the proceeds of such Permitted
     Purchase Money Indebtedness, other than improvements thereon and proceeds
     thereof.

          6.15.17 Liens in respect of Capitalized Lease Obligations to the
     extent permitted hereunder and Liens arising under any equipment, furniture
     or fixtures leases or Property consignments to the Borrower or any
     Subsidiary otherwise permitted under the Loan Documents.

          6.15.18 Licenses, leases or subleases granted to others in the
     ordinary course of business consistent with the Borrower's and the
     Subsidiaries' past practices that do not materially interfere with the
     conduct of the business of the Borrower and the Subsidiaries taken as a
     whole.

          6.15.19 Statutory and contractual landlords' Liens under leases to
     which the Borrower or any Subsidiary is a party.

          6.15.20 Liens in favor of a banking institution arising as a matter of
     applicable law encumbering deposits (including the right of set-off) held
     by such banking institutions incurred in the ordinary course of business
     and which are within the general parameters customary in the banking
     industry.

          6.15.21 Liens in favor of customs and revenue authorities arising as a
     matter of applicable law to secure the payment of customs' duties in
     connection with the importation of goods.

          6.15.22 Any interest or title of a lessor, sublessor, licensee or
     licensor under any lease or license agreement permitted by this Agreement.

          6.15.23 Liens not otherwise permitted under this Section 6.15 to the
     extent attaching to Properties and assets with an aggregate fair market
     value not in excess of, and securing liabilities not in excess of,
     $10,000,000, in the aggregate at any one time outstanding.

     6.16. Affiliates. The Borrower will not enter into, directly or indirectly,
or permit any Subsidiary to enter into, directly or indirectly, any transaction
(including, without limitation, the

                                       46

<PAGE>

purchase or sale of any Property or service) with, or make any payment or
transfer to, any Affiliate (other than the Borrower and the Guarantors) except
(a) in the ordinary course of business and pursuant to the reasonable
requirements of the Borrower's or such Subsidiary's business and upon fair and
reasonable terms no less favorable to the Borrower or such Subsidiary than the
Borrower or such Subsidiary would obtain in a comparable arm's-length
transaction and (b) in connection with any Receivables Purchase Facility
permitted under Section 6.14.4.

     6.17. Financial Contracts. The Borrower will not, nor will it permit any
Subsidiary to, enter into or remain liable upon any Rate Management Transactions
except for those entered into (i) by the Borrower and its Subsidiaries in the
ordinary course of business for bona fide hedging purposes and not for
speculative purposes and (ii) by any SPV in connection with a Receivables
Purchase Facility permitted hereunder.

     6.18. Subsidiary Covenants. The Borrower will not, and will not permit any
Subsidiary (other than any SPV) to, create or otherwise cause to become
effective any consensual encumbrance or restriction of any kind on the ability
of any Subsidiary (other than any SPV) (i) to pay dividends or make any other
distribution on its stock, (ii) to pay any Indebtedness or other obligation owed
to the Borrower or any Subsidiary, (iii) to make loans or advances or other
Investments in the Borrower or any Subsidiary, or (iv) to sell, transfer or
otherwise convey any of its property to the Borrower or any Subsidiary, except
for such encumbrances or restrictions existing under or by reason of (a) this
Agreement and the other Loan Documents, (b) customary provisions restricting
subletting or assignment of any lease governing any leasehold interest of the
Borrower or any of its Subsidiaries, (c) customary provisions restricting
assignment of any licensing agreement or other contract entered into by Borrower
and its Subsidiaries in the ordinary course of business, (d) restrictions on the
transfer of any asset pending the close of the sale of such asset and (e)
restrictions on the transfer of any assets subject to a Lien permitted by
Section 6.15.

     6.19. Contingent Obligations. The Borrower will not, nor will it permit any
Subsidiary to, make or suffer to exist any Contingent Obligation (including,
without limitation, any Contingent Obligation with respect to the obligations of
a Subsidiary), except Contingent Obligations arising with respect to (i) this
Agreement and the other Loan Documents, (ii) customary indemnification
obligations in favor of purchasers in connection with asset dispositions
permitted hereunder, (iii) customary indemnification obligations under such
Person's charter and bylaws (or equivalent formation documents), (iv)
indemnities in favor of the Persons issuing title insurance policies insuring
the title to any property, (v) guarantees of (a) real property leases of the
Borrower and its Subsidiaries and (b) personal property Operating Leases of the
Borrower and its Subsidiaries, in each case entered into in the ordinary course
of business by the Borrower or any of the Subsidiaries, (vi) the Receivables
Purchase Facility and (vii) other Contingent Obligations constituting guarantees
of Indebtedness of the Borrower or any of its Subsidiaries permitted under
Section 6.14, provided that to the extent such Indebtedness is subordinated to
the Obligations each such Contingent Obligation shall be subordinated to the
Obligations on terms reasonably acceptable to the Agent.

     6.20. Leverage Ratio. The Borrower will maintain, as of the end of each
fiscal quarter, a Leverage Ratio of not greater than 3.25 to 1.00.

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     6.21. Interest Expense Coverage Ratio. The Borrower will not permit the
ratio (the "Interest Expense Coverage Ratio"), determined as of the end of each
of its fiscal quarters for the then most-recently ended four fiscal quarters of
(i) Consolidated EBIT during such period to (ii) Consolidated Interest Expense
during such period, all calculated for the Borrower and its Subsidiaries on a
consolidated basis, to be less than 3.00 to 1.00.

     6.22. Minimum Consolidated Net Worth. The Borrower will at all times
maintain Consolidated Net Worth of not less than the sum of (i) $500,000,000,
plus (ii) 50% of the cumulative positive quarterly Consolidated Net Income for
all fiscal quarters of the Borrower following the fiscal quarter of the Borrower
ending July 26, 2003 (without taking into account any net loss in any such
fiscal quarter), plus (iii) 100% of the amount, if any, by which stockholder's
equity of the Borrower is, in accordance with Agreement Accounting Principles,
increased for all fiscal quarters of the Borrower following the fiscal quarter
of the Borrower ending July 26, 2003 as a result of (A) the issuance of any
capital stock of the Borrower or (B) any Acquisition (including the AbilityOne
Acquisition).

     6.23. Additional Subsidiary Guarantors. The Borrower shall execute or shall
cause to be executed on the date any Person becomes a Material Domestic
Subsidiary of the Borrower (other than an SPV), a supplement to the Guaranty
pursuant to which such Material Domestic Subsidiary shall become a Guarantor,
and shall deliver or cause to be delivered to the Agent all appropriate
corporate resolutions and other documentation (including opinions of counsel) in
each case in form and substance reasonably satisfactory to the Agent. If at any
time (a) the aggregate assets of all of the Borrower's Domestic Subsidiaries
that are not Guarantors under the Guaranty exceeds twenty percent (20%) of the
consolidated total assets of the Borrower and its Subsidiaries, or (b) the
aggregate Consolidated Adjusted Net Income for the four consecutive fiscal
quarters most recently ended of all of the Borrower's Domestic Subsidiaries that
are not Guarantors under the Guaranty exceeds twenty percent (20%) of the
Borrower's Consolidated Adjusted Net Income for such period, the Borrower will,
within 30 days after its senior management becomes aware (or reasonably should
have become aware) of such event, cause to be executed and delivered to the
Agent a supplement to the Guaranty (together with such other documents, opinions
and information as the Agent may require) with respect to additional Domestic
Subsidiaries to the extent necessary so that, after giving effect thereto, the
threshold levels in clauses (a) and (b) above are not exceeded.

     6.24. Foreign Subsidiary Investments. The Borrower will not, nor will it
permit any other Credit Party to, enter into or suffer to exist Foreign
Subsidiary Investments at any time in an aggregate amount greater than
$50,000,000.

     6.25. Subordinated Indebtedness. The Borrower will not, and will not permit
any Subsidiary to, make any amendment or modification to the indenture, note or
other agreement evidencing or governing any Subordinated Indebtedness, or
directly or indirectly voluntarily prepay, defease or in substance defease,
purchase, redeem, retire or otherwise acquire, any Subordinated Indebtedness.

     6.26. Sale of Accounts. The Borrower will not, nor will it permit any
Subsidiary to, sell or otherwise dispose of any notes receivable or accounts
receivable, with or without recourse except to the extent permitted by Section
6.12.4.

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                                  ARTICLE VII

                                    DEFAULTS

     The occurrence of any one or more of the following events shall constitute
a Default:

     7.1 Any representation or warranty made or deemed made by or on behalf of
the Borrower or any Subsidiary to the Lenders or the Agent under or in
connection with this Agreement, any Credit Extension, or any certificate or
information delivered in connection with this Agreement or any other Transaction
Document shall be false in any material respect on the date as of which made or
deemed made.

     7.2 Nonpayment of (i) principal of any Loan when due, or (ii) interest upon
any Loan or any Facility Fee or other Obligations under any of the Loan
Documents within five (5) days after such interest, fee or other Obligation
becomes due.

     7.3 The breach by the Borrower of any of the terms or provisions of any of
Sections 6.1 through 6.3 or any of Sections 6.10 through 6.26.

     7.4 The breach by the Borrower (other than a breach which constitutes a
Default under another Section of this Article VII) or any other Credit Party of
any of the terms or provisions of this Agreement or any other Loan Document to
which it is a party which is not remedied within five (5) days after the earlier
to occur of (i) written notice from the Agent or any Lender to the Borrower or
(ii) an Authorized Officer otherwise become aware of any such breach.

     7.5 Failure of the Borrower or any Subsidiary to pay when due any Material
Indebtedness (beyond the applicable grace period with respect thereto, if any);
or the default by the Borrower or any Subsidiary in the performance (beyond the
applicable grace period with respect thereto, if any) of any term, provision or
condition contained in any Material Indebtedness Agreement, or any other event
shall occur or condition exist, the effect of which default, event or condition
is to cause, or to permit the holder(s) of such Material Indebtedness or the
lender(s) under any Material Indebtedness Agreement to cause, such Material
Indebtedness to become due prior to its stated maturity or any commitment to
lend under any Material Indebtedness Agreement to be terminated prior to its
stated expiration date; or any Material Indebtedness of the Borrower or any
Subsidiary shall be declared to be due and payable or required to be prepaid or
repurchased (other than by a regularly scheduled payment) prior to the stated
maturity thereof; or the Borrower or any Subsidiary shall not pay, or admit in
writing its inability to pay, its debts generally as they become due.

     7.6 The Borrower or any Subsidiary shall (i) have an order for relief
entered with respect to it under the Federal bankruptcy laws as now or hereafter
in effect, (ii) make an assignment for the benefit of creditors, (iii) apply
for, seek, consent to, or acquiesce in, the appointment of a receiver,
custodian, trustee, examiner, liquidator or similar official for it or any
Substantial Portion of its Property, (iv) institute any proceeding seeking an
order for relief under the Federal bankruptcy laws as now or hereafter in effect
or seeking to adjudicate it a bankrupt or insolvent, or seeking dissolution,
winding up, liquidation, reorganization, arrangement,

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<PAGE>

adjustment or composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors or fail to file an
answer or other pleading denying the material allegations of any such proceeding
filed against it, (v) take any corporate or partnership action to authorize or
effect any of the foregoing actions set forth in this Section 7.6 or (vi) fail
to contest in good faith any appointment or proceeding described in Section 7.7.

     7.7 Without the application, approval or consent of the Borrower or any
Subsidiary, a receiver, trustee, examiner, liquidator or similar official shall
be appointed for the Borrower or any Subsidiary or any Substantial Portion of
its Property, or a proceeding described in Section 7.6(iv) shall be instituted
against the Borrower or any Subsidiary and such appointment continues
undischarged or such proceeding continues undismissed or unstayed for a period
of 30 consecutive days.

     7.8 Any court, government or governmental agency shall condemn, seize or
otherwise appropriate, or take custody or control of, all or any portion of the
Property of the Borrower and the Subsidiaries which, when taken together with
all other Property of the Borrower and the Subsidiaries so condemned, seized,
appropriated, or taken custody or control of, during the twelve-month period
ending with the month in which any such action occurs, constitutes a Substantial
Portion.

     7.9 The Borrower or any Subsidiary shall fail within 30 days to pay, bond
or otherwise discharge one or more (i) judgments or orders for the payment of
money in excess of $5,000,000 (or the equivalent thereof in currencies other
than Dollars) in the aggregate, or (ii) nonmonetary judgments or orders which,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect, which judgment(s), in any such case, is/are not (a)
stayed on appeal or otherwise being appropriately contested in good faith or (b)
paid in full by third-party insurers under the Borrower's or any Subsidiary's
insurance policies.

     7.10 The Unfunded Liabilities of all Single Employer Plans shall exceed
$10,000,000 in the aggregate, or any Reportable Event shall occur in connection
with any Plan.

     7.11 Nonpayment by the Borrower or any Subsidiary of any Rate Management
Obligation, in an outstanding principal amount of $5,000,000 or more, when due
or the breach by the Borrower or any Subsidiary of any term, provision or
condition contained in any Rate Management Transaction or any transaction of the
type described in the definition of "Rate Management Transactions," whether or
not any Lender or Affiliate of a Lender is a party thereto.

     7.12 Any Change in Control shall occur.

     7.13 The Borrower or any other member of the Controlled Group shall have
been notified by the sponsor of a Multiemployer Plan that it has incurred,
pursuant to Section 4201 of ERISA, withdrawal liability to such Multiemployer
Plan in an amount which, when aggregated with all other amounts required to be
paid to Multiemployer Plans by the Borrower or any other member of the
Controlled Group as withdrawal liability (determined as of the date of such
notification), exceeds $10,000,000 or requires payments exceeding $10,000,000
per annum.

     7.14 The Borrower or any other member of the Controlled Group shall have
been notified by the sponsor of a Multiemployer Plan that such Multiemployer
Plan is in

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<PAGE>

reorganization or is being terminated, within the meaning of Title IV of ERISA,
if as a result of such reorganization or termination the aggregate annual
contributions of the Borrower and the other members of the Controlled Group
(taken as a whole) to all Multiemployer Plans which are then in reorganization
or being terminated have been or will be increased, in the aggregate, over the
amounts contributed to such Multiemployer Plans for the respective plan years of
such Multiemployer Plans immediately preceding the plan year in which the
reorganization or termination occurs by an amount exceeding $10,000,000.

     7.15 The Borrower or any Subsidiary shall (i) be the subject of any
proceeding or investigation pertaining to the release by the Borrower or any
Subsidiary or any other Person of any toxic or hazardous waste or substance into
the environment, or (ii) violate any Environmental Law, which, in the case of an
event described in clause (i) or clause (ii), has resulted in liability to the
Borrower or any Subsidiary in an amount equal to $10,000,000 or more, which
liability is not paid, bonded or otherwise discharged within 60 days or which is
not stayed on appeal and being appropriately contested in good faith.

     7.16 Any Loan Document shall fail to remain in full force or effect against
the Borrower or any Subsidiary or any action shall be taken or shall fail to be
taken to discontinue or to assert the invalidity or unenforceability of, or
which results in the discontinuation or invalidity or unenforceability of, any
Loan Document.

     7.17 An event (such event, an "Off-Balance Sheet Trigger Event") shall
occur which (i) permits the investors or purchasers in respect of Off-Balance
Sheet Liabilities of the Borrower or any Affiliate of the Borrower to require
the amortization or liquidation of such Off-Balance Sheet Liabilities as a
result of the non-payment of any Off-Balance Sheet Liability having an aggregate
outstanding principal amount (or similar outstanding liability) greater than or
equal to $5,000,000 and (x) such Off-Balance Sheet Trigger Event shall not be
remedied or waived within the later to occur of the tenth day after the
occurrence thereof or the expiry date of any grace period related thereto under
the agreement evidencing such Off-Balance Sheet Liabilities, or (y) such
investors shall require the amortization or liquidation of such Off-Balance
Sheet Liabilities as a result of such Off-Balance Sheet Trigger Event, (ii)
results in the termination of reinvestments of collections or proceeds of
receivables and related assets under the agreements evidencing such Off-Balance
Sheet Liabilities, or (iii) causes or otherwise permits the replacement or
substitution of the Borrower or any Affiliate thereof as the servicer under the
agreements evidencing such Off-Balance Sheet Liabilities; provided, however,
that this Section 7.17 shall not apply on any date with respect to (a) any
voluntary request by the Borrower or an Affiliate thereof for an above-described
amortization, liquidation, or termination of reinvestments so long as the
aforementioned investors or purchasers cannot independently require on such date
such amortization, liquidation or termination of reinvestments or (b) any
scheduled amortization or liquidation at the stated maturity of the facility
evidencing such Off-Balance Sheet Liabilities.

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                                  ARTICLE VIII

                 ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES

     8.1. Acceleration. (i) If any Default described in Section 7.6 or 7.7
occurs with respect to any Credit Party, the obligations of the Lenders to make
Loans hereunder shall automatically terminate and the Obligations shall
immediately become due and payable without any election or action on the part of
the Agent or any Lender. If any other Default occurs, the Required Lenders (or
the Agent with the consent of the Required Lenders) may terminate or suspend the
obligations of the Lenders to make Loans hereunder, or declare the Obligations
to be due and payable, or both, whereupon the Obligations shall become
immediately due and payable, without presentment, demand, protest or notice of
any kind, all of which the Borrower hereby expressly waives.

     (ii) If, after acceleration of the maturity of the Obligations or
          termination of the obligations of the Lenders to make Loans hereunder
          as a result of any Default (other than any Default as described in
          Section 7.6 or 7.7 with respect to any Credit Party) and before any
          judgment or decree for the payment of the Obligations due shall have
          been obtained or entered, the Required Lenders (in their sole
          discretion) shall so direct, the Agent shall, by notice to the
          Borrower, rescind and annul such acceleration and/or termination.

     8.2. Amendments. Subject to the provisions of this Section 8.2, the
Required Lenders (or the Agent with the consent in writing of the Required
Lenders) and the Borrower may enter into agreements supplemental hereto for the
purpose of adding or modifying any provisions to the Loan Documents or changing
in any manner the rights of the Lenders or the Borrower hereunder or thereunder
or waiving any Default hereunder or thereunder; provided, however, that no such
supplemental agreement shall, without the consent of each Lender affected
thereby:

          8.2.1 Extend the Facility Termination Date, extend the final maturity
     of any Loan to a date after the Facility Termination Date, or postpone any
     regularly scheduled payment of principal of any Loan or forgive all or any
     portion of the principal amount thereof, or reduce the rate or extend the
     time of payment of interest or fees thereon (other than (x) a waiver of the
     application of the default rate of interest pursuant to Section 2.9 hereof
     and (y) any reduction of the amount of or any extension of the payment date
     for the mandatory payments required under Section 2.2, in each case which
     shall only require the approval of the Required Lenders).

          8.2.2 Reduce the percentage specified in the definition of Required
     Lenders or any other percentage of Lenders specified to be the applicable
     percentage in this Agreement to act on specified matters or amend the
     definition of "Pro Rata Share".

          8.2.3 Increase the amount of the Commitment of any Lender hereunder,
     or permit the Borrower to assign its rights or obligations under this
     Agreement.

          8.2.4 Amend this Section 8.2.

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<PAGE>

          8.2.5 Other than in connection with a transaction permitted under this
     Agreement, release any Guarantor that remains a Material Domestic
     Subsidiary from its obligations under the Guaranty.

No amendment of any provision of this Agreement relating to the Agent shall be
effective without the written consent of the Agent. The Agent may waive payment
of the fee required under Section 12.3.3 without obtaining the consent of any
other party to this Agreement.

     8.3. Preservation of Rights. No delay or omission of the Lenders or the
Agent to exercise any right under the Loan Documents shall impair such right or
be construed to be a waiver of any Default or an acquiescence therein, and the
making of a Credit Extension notwithstanding the existence of a Default or
Unmatured Default or the inability of the Borrower to satisfy the conditions
precedent to such Credit Extension shall not constitute any waiver or
acquiescence. Any single or partial exercise of any such right shall not
preclude other or further exercise thereof or the exercise of any other right,
and no waiver, amendment or other variation of the terms, conditions or
provisions of the Loan Documents whatsoever shall be valid unless in writing
signed by, or by the Agent with the consent of, the requisite number of Lenders
required pursuant to Section 8.2, and then only to the extent in such writing
specifically set forth. All remedies contained in the Loan Documents or by law
afforded shall be cumulative and all shall be available to the Agent and the
Lenders until all of the Obligations have been paid in full.

                                   ARTICLE IX

                               GENERAL PROVISIONS

     9.1. Survival of Representations. All representations and warranties of the
Borrower contained in this Agreement shall survive the making of the Credit
Extensions herein contemplated.

     9.2. Governmental Regulation. Anything contained in this Agreement to the
contrary notwithstanding, no Lender shall be obligated to extend credit to the
Borrower in violation of any limitation or prohibition provided by any
applicable statute or regulation.

     9.3. Headings. Section headings in the Loan Documents are for convenience
of reference only, and shall not govern the interpretation of any of the
provisions of the Loan Documents.

     9.4. Entire Agreement. The Loan Documents embody the entire agreement and
understanding among the Borrower, the Agent and the Lenders and supersede all
prior agreements and understandings among the Borrower, the Agent and the
Lenders relating to the subject matter thereof other than those contained in the
fee letter described in Section 10.13 which shall survive and remain in full
force and effect during the term of this Agreement.

     9.5. Several Obligations; Benefits of this Agreement. The respective
obligations of the Lenders hereunder are several and not joint and no Lender
shall be the partner or agent of any other (except to the extent to which the
Agent is authorized to act as such). The failure of any Lender to perform any of
its obligations hereunder shall not relieve any other Lender from any of its
obligations hereunder. This Agreement shall not be construed so as to confer any
right or

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benefit upon any Person other than the parties to this Agreement and their
respective successors and assigns, provided, however, that the parties hereto
expressly agree that the Arrangers shall enjoy the benefits of the provisions of
Sections 9.6, 9.10 and 10.11 to the extent specifically set forth therein and
shall have the right to enforce such provisions on its own behalf and in its own
name to the same extent as if it were a party to this Agreement.

     9.6. Expenses; Indemnification.

     (i)  The Borrower shall reimburse the Agent and the Arrangers for any
          reasonable costs, internal charges and out-of-pocket expenses
          (including outside attorneys' and paralegals' fees and expenses of and
          fees for other advisors and professionals engaged by the Agent or the
          Arrangers and, unless a Default shall be continuing, with the consent
          of the Borrower) paid or incurred by the Agent or the Arrangers in
          connection with the investigation, preparation, negotiation,
          documentation, execution, delivery, syndication, distribution
          (including, without limitation, via the internet), review, amendment,
          modification and administration of the Transaction Documents. The
          Borrower also agrees to reimburse the Agent, the Arrangers and the
          Lenders for any costs, internal charges and out-of-pocket expenses
          (including outside attorneys' and paralegals' fees and expenses of
          outside attorneys and paralegals for the Agent, the Arrangers and the
          Lenders) paid or incurred by the Agent, the Arrangers or any Lender in
          connection with the collection and enforcement of the Loan Documents.
          Expenses being reimbursed by the Borrower under this Section include,
          without limitation, costs and expenses incurred in connection with the
          Reports described in the following sentence. The Borrower acknowledges
          that from time to time BOMC may prepare and may distribute to the
          Lenders (but shall have no obligation or duty to prepare or to
          distribute to the Lenders) certain audit reports (the "Reports")
          pertaining to the Borrower's assets for internal use by BOMC from
          information furnished to it by or on behalf of the Borrower, after
          BOMC has exercised its rights of inspection pursuant to this
          Agreement.

     (ii) The Borrower hereby further agrees to indemnify the Agent, the
          Arrangers, each Lender, their respective affiliates, and each of their
          directors, officers and employees against all losses, claims, damages,
          penalties, judgments, liabilities and expenses (including, without
          limitation, all expenses of litigation or preparation therefor whether
          or not the Agent, the Arrangers, any Lender or any affiliate is a
          party thereto, and all outside attorneys' and paralegals' fees and
          expenses of outside attorneys and paralegals of the party seeking
          indemnification) which any of them may pay or incur arising out of or
          relating to this Agreement, the other Transaction Documents, the
          AbilityOne Acquisition and the other transactions contemplated hereby
          or the direct or indirect application or proposed application of the
          proceeds of any Credit Extension hereunder except to the extent that
          they are determined in a final non-appealable judgment by a court of
          competent jurisdiction to have resulted from the gross negligence or
          willful misconduct of the party seeking indemnification. The
          obligations of the Borrower under this Section 9.6 shall survive the
          termination of this Agreement.

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<PAGE>

     9.7. Numbers of Documents. All statements, notices, closing documents, and
requests hereunder shall be furnished to the Agent with sufficient counterparts
so that the Agent may furnish one to each of the Lenders, to the extent that the
Agent deems necessary.

     9.8. Accounting. Except as provided to the contrary herein, all accounting
terms used in the calculation of any financial covenant or test shall be
interpreted and all accounting determinations hereunder in the calculation of
any financial covenant or test shall be made in accordance with Agreement
Accounting Principles. If any changes in generally accepted accounting
principles are hereafter required or permitted and are adopted by the Borrower
or any Subsidiary with the agreement of its independent certified public
accountants and such changes result in a change in the method of calculation of
any of the financial covenants, tests, restrictions or standards herein or in
the related definitions or terms used therein ("Accounting Changes"), the
parties hereto agree, at the Borrower's request, to enter into negotiations, in
good faith, in order to amend such provisions in a credit neutral manner so as
to reflect equitably such changes with the desired result that the criteria for
evaluating the Borrower's and its Subsidiaries' financial condition shall be the
same after such changes as if such changes had not been made; provided, however,
until such provisions are amended in a manner reasonably satisfactory to the
Agent and the Required Lenders, no Accounting Change shall be given effect in
such calculations. In the event such amendment is entered into, all references
in this Agreement to Agreement Accounting Principles shall mean generally
accepted accounting principles, including the Accounting Change, as of the date
of such amendment. Notwithstanding the foregoing, all financial statements to be
delivered by The Borrower pursuant to Section 6.1 shall be prepared in
accordance with generally accepted accounting principles in effect at such time.

     9.9. Severability of Provisions. Any provision in any Loan Document that is
held to be inoperative, unenforceable, or invalid in any jurisdiction shall, as
to that jurisdiction, be inoperative, unenforceable, or invalid without
affecting the remaining provisions in that jurisdiction or the operation,
enforceability, or validity of that provision in any other jurisdiction, and to
this end the provisions of all Loan Documents are declared to be severable.

     9.10. Nonliability of Lenders. The relationship between the Borrower on the
one hand and the Lenders and the Agent on the other hand shall be solely that of
borrower and lender. Neither the Agent (except to the limited extent as provided
by Section 12.3.4 relating to maintaining the Register), the Arrangers nor any
Lender shall have any fiduciary responsibilities to the Borrower or any other
Credit Party. Neither the Agent, the Arrangers nor any Lender undertakes any
responsibility to the Borrower or any other Credit Party to review or inform any
Credit Party of any matter in connection with any phase of any Credit Party's
business or operations. The Borrower agrees that neither the Agent, the
Arrangers nor any Lender shall have liability to the Borrower (whether sounding
in tort, contract or otherwise) for losses suffered by the Borrower in
connection with, arising out of, or in any way related to, the transactions
contemplated and the relationship established by the Loan Documents, or any act,
omission or event occurring in connection therewith, unless it is determined in
a final non-appealable judgment by a court of competent jurisdiction that such
losses resulted from the gross negligence or willful misconduct of the party
from which recovery is sought. Neither the Agent, the Arrangers nor any Lender
shall have any liability with respect to, and the Borrower hereby waives,
releases and agrees not to sue for, any special, indirect, consequential or
punitive

                                       55

<PAGE>

damages suffered by the Borrower or any Subsidiary in connection with, arising
out of, or in any way related to the Loan Documents or the transactions
contemplated thereby.

     9.11. Confidentiality. Each Lender agrees to hold any confidential
information which it may receive from the Borrower pursuant to this Agreement in
confidence in accordance with its respective customary practices (but in any
event in accordance with reasonable confidentiality practices), except for
disclosure (i) to its Affiliates and to other Lenders and their respective
Affiliates, for use solely in connection with the transactions contemplated
hereby, (ii) to legal counsel, accountants, and other professional advisors to
such Lender or to a Transferee who are expected to be involved in the evaluation
of such information in connection with the transactions contemplated hereby, in
each case which have been informed as to the confidential nature of such
information, (iii) to regulatory officials having jurisdiction over it, (iv) to
any Person as required by law, regulation, or legal process, (v) of information
that presently or hereafter becomes available to such Lender on a
non-confidential basis from a source other than the Borrower and other than as a
result of disclosure not otherwise permitted by this Section 9.11, (vi) to any
Person in connection with any legal proceeding to which such Lender is a party,
(vii) to such Lender's direct or indirect contractual counterparties in credit
derivative transactions or to legal counsel, accountants and other professional
advisors to such counterparties, in each case which have been informed as to the
confidential nature of such information, (viii) permitted by Section 12.4 and
(ix) to rating agencies if requested or required by such agencies in connection
with a rating relating to the Credit Extensions hereunder. Without limiting
Section 9.4, the Borrower agrees that the terms of this Section 9.11 shall set
forth the entire agreement between the Borrower and each Lender (including the
Agent) with respect to any confidential information previously or hereafter
received by such Lender in connection with this Agreement or any other Loan
Document, and this Section 9.11 shall supersede any and all prior
confidentiality agreements entered into by such Lender with respect to such
confidential information. Notwithstanding anything herein to the contrary,
confidential information shall not include, and each party hereto (and each
employee, representative or other agent of any party hereto) may disclose to any
and all Persons, without limitation of any kind, the U.S. federal income tax
treatment and U.S. federal income tax structure of the transactions contemplated
hereby and all materials of any kind (including opinions or other tax analyses)
that are or have been provided to such party relating to such tax treatment or
tax structure, and it is hereby confirmed that each party hereto has been
authorized to make such disclosures since the commencement of discussions
regarding the transactions contemplated hereby.

     9.12. Lenders Not Utilizing Plan Assets. Each Lender and Designated Lender
represents and warrants that none of the consideration used by such Lender or
Designated Lender to make its Loans constitutes for any purpose of ERISA or
Section 4975 of the Code assets of any "plan" as defined in Section 3(3) of
ERISA or Section 4975 of the Code and the rights and interests of such Lender or
Designated Lender in and under the Loan Documents shall not constitute such
"plan assets" under ERISA.

     9.13. Nonreliance. Each Lender hereby represents that it is not relying on
or looking to any margin stock (as defined in Regulation U) as collateral in the
extension or maintenance of the credit provided for herein.

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     9.14. Disclosure. The Borrower and each Lender hereby acknowledge and agree
that each Lender and/or its Affiliates from time to time may hold investments
in, make other loans to or have other relationships with the Borrower and its
Affiliates.

     9.15. Performance of Obligations. The Borrower agrees that the Agent may,
but shall have no obligation to (i) at any time, pay or discharge taxes, liens,
security interests or other encumbrances levied or placed on or threatened
against any collateral for the Obligations and (ii) after the occurrence and
during the continuance of a Default make any other payment or perform any act
required of the Borrower or any Subsidiary under any Loan Document or take any
other action which the Agent in its discretion deems necessary or desirable to
protect or preserve the collateral, if any, for the Obligations, including,
without limitation, any action to (x) effect any repairs or obtain any insurance
called for by the terms of any of the Loan Documents and to pay all or any part
of the premiums therefor and the costs thereof and (y) pay any rents payable by
the Borrower or any Subsidiary which are more than 30 days past due, or as to
which the landlord has given notice of termination, under any lease. The Agent
shall use its best efforts to give the Borrower notice of any action taken under
this Section 9.15 prior to the taking of such action or promptly thereafter
provided the failure to give such notice shall not affect the Borrower's
obligations in respect thereof. The Borrower agrees to pay the Agent, upon
demand, the principal amount of all funds advanced by the Agent under this
Section 9.15, together with interest thereon at the rate from time to time
applicable to Floating Rate Loans from the date of such advance until the
outstanding principal balance thereof is paid in full. If the Borrower fails to
make payment in respect of any such advance under this Section 9.15 within one
(1) Business Day after the date the Borrower receives written demand therefor
from the Agent, the Agent shall promptly notify each Lender and each Lender
agrees that it shall thereupon make available to the Agent, in Dollars in
immediately available funds, the amount equal to such Lender's Pro Rata Share of
such advance. If such funds are not made available to the Agent by such Lender
within one (1) Business Day after the Agent's demand therefor, the Agent will be
entitled to recover any such amount from such Lender together with interest
thereon at the Federal Funds Effective Rate for each day during the period
commencing on the date of such demand and ending on the date such amount is
received. The failure of any Lender to make available to the Agent its Pro Rata
Share of any such unreimbursed advance under this Section 9.15 shall neither
relieve any other Lender of its obligation hereunder to make available to the
Agent such other Lender's Pro Rata Share of such advance on the date such
payment is to be made nor increase the obligation of any other Lender to make
such payment to the Agent. All outstanding principal of, and interest on,
advances made under this Section 9.15 shall constitute Obligations until paid in
full by the Borrower.

                                    ARTICLE X

                                    THE AGENT

     10.1. Appointment; Nature of Relationship. BOMC is hereby appointed by each
of the Lenders as its contractual representative (herein referred to as the
"Agent") hereunder and under each other Loan Document, and each of the Lenders
irrevocably authorizes the Agent to act as the contractual representative of
such Lender with the rights and duties expressly set forth herein and in the
other Loan Documents. The Agent agrees to act as such contractual representative
upon the express conditions contained in this Article X. Notwithstanding the use
of the defined

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term "Agent," it is expressly understood and agreed that the Agent shall not
have any fiduciary responsibilities to any of the Lenders by reason of this
Agreement or any other Loan Document and that the Agent is merely acting as the
contractual representative of the Lenders with only those duties as are
expressly set forth in this Agreement and the other Loan Documents. In its
capacity as the Lenders' contractual representative, the Agent (i) does not
hereby assume any fiduciary duties to any of the Lenders, (ii) is a
"representative" of the Lenders within the meaning of the term "secured party"
as defined in the Illinois Uniform Commercial Code and (iii) is acting as an
independent contractor, the rights and duties of which are limited to those
expressly set forth in this Agreement and the other Loan Documents. Each of the
Lenders, for itself and on behalf of its Affiliates, hereby agrees to assert no
claim against the Agent on any agency theory or any other theory of liability
for breach of fiduciary duty, all of which claims each Lender and each Affiliate
of each Lender hereby waives.

     10.2. Powers. The Agent shall have and may exercise such powers under the
Loan Documents as are specifically delegated to the Agent by the terms of each
thereof, together with such powers as are reasonably incidental thereto. The
Agent shall have no implied duties or fiduciary duties to the Lenders, or any
obligation to the Lenders to take any action thereunder except any action
specifically provided by the Loan Documents to be taken by the Agent.

     10.3. General Immunity. Neither the Agent nor any of its directors,
officers, agents or employees shall be liable to the Borrower, any Subsidiary or
any Lender for any action taken or omitted to be taken by it or them hereunder
or under any other Loan Document or in connection herewith or therewith except
to the extent such action or inaction is determined in a final, non-appealable
judgment by a court of competent jurisdiction to have arisen from the gross
negligence or willful misconduct of such Person.

     10.4. No Responsibility for Loans, Recitals, etc. Neither the Agent nor any
of its directors, officers, agents or employees shall be responsible for or have
any duty to ascertain, inquire into, or verify (a) any statement, warranty or
representation made in connection with any Loan Document or any borrowing
hereunder; (b) the performance or observance of any of the covenants or
agreements of any obligor under any Loan Document, including, without
limitation, any agreement by an obligor to furnish information directly to each
Lender; (c) the satisfaction of any condition specified in Article IV, except
receipt of items required to be delivered solely to the Agent; (d) the existence
or possible existence of any Default or Unmatured Default; (e) the validity,
enforceability, effectiveness, sufficiency or genuineness of any Loan Document
or any other instrument or writing furnished in connection therewith; (f) the
value sufficiency, creation, perfection or priority of any Lien in any
collateral security; or (g) the financial condition of the Borrower, any
Subsidiary or any guarantor of any of the Obligations or of any of the
Borrower's, such Subsidiary's or any such guarantor's respective Subsidiaries.
The Agent shall have no duty to disclose to the Lenders information that is not
required to be furnished by the Borrower to the Agent at such time, but is
voluntarily furnished by the Borrower to the Agent (either in its capacity as
Agent or in its individual capacity).

     10.5. Action on Instructions of Lenders. The Agent shall in all cases be
fully protected in acting, or in refraining from acting, hereunder and under any
other Loan Document in accordance with written instructions signed by the
Required Lenders (or all of the Lenders in the event that and to the extent that
this Agreement expressly requires such approval), and such

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instructions and any action taken or failure to act pursuant thereto shall be
binding on all of the Lenders. The Lenders hereby acknowledge that the Agent
shall be under no duty to take any discretionary action permitted to be taken by
it pursuant to the provisions of this Agreement or any other Loan Document
unless it shall be requested in writing to do so by the Required Lenders (or all
of the Lenders in the event that and to the extent that this Agreement expressly
requires such approval). The Agent shall be fully justified in failing or
refusing to take any action hereunder and under any other Loan Document unless
it shall first be indemnified to its satisfaction by the Lenders pro rata
against any and all liability, cost and expense that it may incur by reason of
taking or continuing to take any such action.

     10.6. Employment of Agents and Counsel. The Agent may execute any of its
duties as Agent hereunder and under any other Loan Document by or through
employees, agents, and attorneys-in-fact and shall not be answerable to the
Lenders, except as to money or securities received by it or its authorized
agents, for the default or misconduct of any such agents or attorneys-in-fact
selected by it with reasonable care. The Agent shall be entitled to advice of
counsel concerning the contractual arrangement between the Agent and the Lenders
and all matters pertaining to the Agent's duties hereunder and under any other
Loan Document.

     10.7. Reliance on Documents; Counsel. The Agent shall be entitled to rely
upon any Note, notice, consent, certificate, affidavit, letter, telegram,
facsimile, telex, electronic mail message, statement, paper or document believed
by it to be genuine and correct and to have been signed or sent by the proper
person or persons, and, in respect to legal matters, upon the opinion of counsel
selected by the Agent, which counsel may be employees of the Agent. For purposes
of determining compliance with the conditions specified in Sections 4.1 and 4.2,
each Lender that has signed this Agreement (or otherwise become party hereto
pursuant to an Assignment Agreement) shall be deemed to have consented to,
approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless the Agent shall have received notice from such
Lender prior to the applicable date specifying its objection thereto.

     10.8. Agent's Reimbursement and Indemnification. The Lenders agree to
reimburse and indemnify the Agent ratably in proportion to the Lenders' Pro Rata
Shares of the Aggregate Commitment (or, from and after the Funding Date, of the
Aggregate Outstanding Credit Exposure) (i) for any amounts not reimbursed by the
Borrower for which the Agent is entitled to reimbursement by any Credit Party
under the Loan Documents, (ii) for any other expenses incurred by the Agent on
behalf of the Lenders, in connection with the preparation, execution, delivery,
administration and enforcement of the Loan Documents (including, without
limitation, for any expenses incurred by the Agent in connection with any
dispute between the Agent and any Lender or between two or more of the Lenders)
and (iii) for any liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind and nature
whatsoever which may be imposed on, incurred by or asserted against the Agent in
any way relating to or arising out of the Loan Documents or any other document
delivered in connection therewith or the transactions contemplated thereby
(including, without limitation, for any such amounts incurred by or asserted
against the Agent in connection with any dispute between the Agent and any
Lender or between two or more of the Lenders), or the enforcement of any of the
terms of the Loan Documents or of any such other documents, provided that (i) no
Lender shall be liable for any of the foregoing to the extent any of the
foregoing is found in a

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final, non-appealable judgment by a court of competent jurisdiction to have
resulted from the gross negligence or willful misconduct of the Agent and (ii)
any indemnification required pursuant to Section 3.5(vii) shall, notwithstanding
the provisions of this Section 10.8, be paid by the relevant Lender in
accordance with the provisions thereof. The obligations of the Lenders under
this Section 10.8 shall survive payment of the Obligations and termination of
this Agreement.

     10.9. Notice of Default. The Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default or Unmatured Default hereunder unless
the Agent has received written notice from a Lender or the Borrower referring to
this Agreement describing such Default or Unmatured Default and stating that
such notice is a "notice of default". In the event that the Agent receives such
a notice, the Agent shall give prompt notice thereof to the Lenders.

     10.10. Rights as a Lender. In the event the Agent is a Lender, the Agent
shall have the same rights and powers hereunder and under any other Loan
Document with respect to its Commitment and its Credit Extensions as any Lender
and may exercise the same as though it were not the Agent, and the term "Lender"
or "Lenders" shall, at any time when the Agent is a Lender, unless the context
otherwise indicates, include the Agent in its individual capacity. The Agent and
its Affiliates may accept deposits from, lend money to, and generally engage in
any kind of trust, debt, equity or other transaction, in addition to those
contemplated by this Agreement or any other Loan Document, with the Borrower or
any Subsidiary in which the Borrower or such Subsidiary is not restricted hereby
from engaging with any other Person. The Agent, in its individual capacity, is
not obligated to remain a Lender.

     10.11. Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Agent, the Arrangers or any other
Lender and based on the financial statements prepared by the Borrower and such
other documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement and the other Loan
Documents. Each Lender also acknowledges that it will, independently and without
reliance upon the Agent, the Arrangers 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 and the other Loan Documents.

     10.12. Successor Agent. The Agent may resign at any time by giving written
notice thereof to the Lenders and the Borrower, such resignation to be effective
upon the appointment of a successor Agent or, if no successor Agent has been
appointed, forty-five days after the retiring Agent gives notice of its
intention to resign. The Agent may be removed at any time with or without cause
by written notice received by the Agent from the Required Lenders, such removal
to be effective on the date specified by the Required Lenders. Upon any such
resignation or removal, the Required Lenders shall have the right to appoint, on
behalf of the Borrower and the Lenders, a successor Agent. If no successor Agent
shall have been so appointed by the Required Lenders within thirty days after
the resigning Agent's giving notice of its intention to resign, then the
resigning Agent may appoint, on behalf of the Borrower and the Lenders, a
successor Agent. Notwithstanding the two immediately preceding sentences: (x)
subject to clause (y) of this sentence, the consent of the Borrower shall be
required prior to the appointment of a successor Agent unless such successor
Agent is a Lender or an Affiliate of a

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Lender, provided that the consent of the Borrower shall not be required if a
Default has occurred and is continuing, and (y) the Agent may at any time
without the consent of the Borrower or any Lender, appoint any of its Affiliates
which is a commercial bank as a successor Agent hereunder. If the Agent has
resigned or been removed and no successor Agent has been appointed, the Lenders
may perform all the duties of the Agent hereunder and the Borrower shall make
all payments in respect of the Obligations to the applicable Lender and for all
other purposes shall deal directly with the Lenders. No successor Agent shall be
deemed to be appointed hereunder until such successor Agent has accepted the
appointment. Any such successor Agent shall be a commercial bank having capital
and retained earnings of at least $100,000,000. Upon the acceptance of any
appointment as Agent hereunder by a successor Agent, such successor Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the resigning or removed Agent. Upon the effectiveness of the
resignation or removal of the Agent, the resigning or removed Agent shall be
discharged from its duties and obligations hereunder and under the Loan
Documents. After the effectiveness of the resignation or removal of an Agent,
the provisions of this Article X shall continue in effect for the benefit of
such Agent in respect of any actions taken or omitted to be taken by it while it
was acting as the Agent hereunder and under the other Loan Documents. In the
event that there is a successor to the Agent by merger, or the Agent assigns its
duties and obligations to an Affiliate pursuant to this Section 10.12, then the
term "Prime Rate" as used in this Agreement shall mean the prime rate, base rate
or other analogous rate of the new Agent.

     10.13. Agent and Arranger Fees. The Borrower agrees to pay to the Agent and
the Arrangers, for their respective accounts, the fees agreed to by the
Borrower, the Agent, Bank of America, N.A. and the Arrangers pursuant to that
certain letter agreement dated August 26, 2003, or as otherwise agreed from time
to time.

     10.14. Delegation to Affiliates. The Borrower and the Lenders agree that
the Agent may delegate any of its duties under this Agreement to any of its
Affiliates. Any such Affiliate (and such Affiliate's directors, officers, agents
and employees) which performs duties in connection with this Agreement shall be
entitled to the same benefits of the indemnification, waiver and other
protective provisions to which the Agent is entitled under Articles IX and X.

     10.15. No Duties Imposed on Syndication Agents, Documentation Agents or
Arrangers. None of the Persons identified on the cover page to this Agreement,
the signature pages to this Agreement or otherwise in this Agreement as a
"Syndication Agent," "Documentation Agent" or "Arranger" shall have any right,
power, obligation, liability, responsibility or duty under this Agreement other
than, if such Person is a Lender, those applicable to all Lenders as such.
Without limiting the foregoing, none of the Persons identified on the cover page
to this Agreement, the signature pages to this Agreement or otherwise in this
Agreement as a "Syndication Agent," "Documentation Agent" or "Arranger" shall
have or be deemed to have any fiduciary duty to or fiduciary relationship with
any Lender. Each of the Lenders acknowledges that it has not relied, and will
not rely, on any of the Persons so identified in deciding to enter into this
Agreement or in taking or not taking action hereunder.

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                                   ARTICLE XI

                            SETOFF; RATABLE PAYMENTS

     11.1. Setoff. In addition to, and without limitation of, any rights of the
Lenders under applicable law, if the Borrower becomes insolvent, however
evidenced, or any other Default occurs and continues, any and all deposits
(including all account balances, whether provisional or final and whether or not
collected or available) and any other Indebtedness at any time held or owing by
any Lender or any Affiliate of any Lender to or for the credit or account of the
Borrower or any Subsidiary may be offset and applied toward the payment of the
Obligations owing to such Lender, whether or not the Obligations, or any part
thereof, shall then be due.

     11.2. Ratable Payments. If any Lender, whether by setoff or otherwise, has
payment made to it upon its Outstanding Credit Exposure (other than payments
received pursuant to Section 3.1, 3.2, 3.4 or 3.5) in a greater proportion than
that received by any other Lender, such Lender agrees, promptly upon demand, to
purchase a participation in the Aggregate Outstanding Credit Exposure held by
the other Lenders so that after such purchase each Lender will hold its Pro Rata
Share of the Aggregate Outstanding Credit Exposure. If any Lender, whether in
connection with setoff or amounts which might be subject to setoff or otherwise,
receives collateral or other protection for its Obligations or such amounts
which may be subject to setoff, such Lender agrees, promptly upon demand, to
take such action necessary such that all Lenders share in the benefits of such
collateral ratably in proportion to their respective Pro Rata Shares of the
Aggregate Outstanding Credit Exposure. In case any such payment is disturbed by
legal process, or otherwise, appropriate further adjustments shall be made.

                                   ARTICLE XII

                BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

     12.1. Successors and Assigns; Designated Lenders.

          12.1.1 Successors and Assigns. The terms and provisions of the Loan
     Documents shall be binding upon and inure to the benefit of the Borrower,
     the Agent and the Lenders and their respective successors and assigns
     permitted hereby, except that (i) the Borrower shall have no right to
     assign its rights or obligations under the Loan Documents without the prior
     written consent of each Lender, (ii) any assignment by any Lender must be
     made in compliance with Section 12.3, and (iii) any transfer by
     Participants must be made in compliance with Section 12.2. Any attempted
     assignment or transfer by any party not made in compliance with this
     Section 12.1 shall be null and void, unless such attempted assignment or
     transfer is treated as a participation in accordance with Section 12.3.2.
     The parties to this Agreement acknowledge that clause (ii) of this Section
     12.1 relates only to absolute assignments and this Section 12.1 does not
     prohibit assignments creating security interests, including, without
     limitation, (x) any pledge or assignment by any Lender of all or any
     portion of its rights under this Agreement and any Note to a Federal
     Reserve Bank, (y) in the case of a Lender which is a Fund, any pledge or
     assignment of all or any portion of its rights under this Agreement and any
     Note to its trustee in support of its obligations to its trustee or (z) any
     pledge or

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     assignment by any Lender of all or any portion of its rights under this
     Agreement and any Note to direct or indirect contractual counterparties in
     credit derivative transactions relating to the Loans; provided, however,
     that no such pledge or assignment creating a security interest shall
     release the transferor Lender from its obligations hereunder unless and
     until the parties thereto have complied with the provisions of Section
     12.3. The Agent may treat the Person which made any Loan or which holds any
     Note as the owner thereof for all purposes hereof unless and until such
     Person complies with Section 12.3; provided, however, that the Agent may in
     its discretion (but shall not be required to) follow instructions from the
     Person which made any Loan or which holds any Note to direct payments
     relating to such Loan or Note to another Person. Any assignee of the rights
     to any Loan or any Note agrees by acceptance of such assignment to be bound
     by all the terms and provisions of the Loan Documents. Any request,
     authority or consent of any Person, who at the time of making such request
     or giving such authority or consent is the owner of the rights to any Loan
     (whether or not a Note has been issued in evidence thereof), shall be
     conclusive and binding on any subsequent holder or assignee of the rights
     to such Loan.

          12.1.2 Designated Lenders.

     (i)  Subject to the terms and conditions set forth in this Section 12.1.2,
          any Lender may from time to time elect to designate an Eligible
          Designee to provide all or any part of the Loans to be made by such
          Lender pursuant to this Agreement; provided that the designation of an
          Eligible Designee by any Lender for purposes of this Section 12.1.2
          shall be subject to the approval of the Agent (which consent shall not
          be unreasonably withheld or delayed). Upon the execution by the
          parties to each such designation of an agreement in the form of
          Exhibit F hereto (a "Designation Agreement") and the acceptance
          thereof by the Agent, the Eligible Designee shall become a Designated
          Lender for purposes of this Agreement. The Designating Lender shall
          thereafter have the right to permit the Designated Lender to provide
          all or a portion of the Loans to be made by the Designating Lender
          pursuant to the terms of this Agreement and the making of the Loans or
          portion thereof shall satisfy the obligations of the Designating
          Lender to the same extent, and as if, such Loan was made by the
          Designating Lender. As to any Loan made by it, each Designated Lender
          shall have all the rights a Lender making such Loan would have under
          this Agreement and otherwise; provided, (x) that all voting rights
          under this Agreement shall be exercised solely by the Designating
          Lender, (y) each Designating Lender shall remain solely responsible to
          the other parties hereto for its obligations under this Agreement,
          including the obligations of a Lender in respect of Loans made by its
          Designated Lender and (z) no Designated Lender shall be entitled to
          reimbursement under Article III hereof for any amount which would
          exceed the amount that would have been payable by the Borrower to the
          Lender from which the Designated Lender obtained any interests
          hereunder. No additional Notes shall be required with respect to Loans
          provided by a Designated Lender; provided, however, to the extent any
          Designated Lender shall advance funds, the Designating Lender shall be
          deemed to hold the Notes in its possession as an agent for such
          Designated Lender to the extent of the Loan funded by such Designated
          Lender. Such Designating Lender shall act as Agent

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          for its Designated Lender and give and receive notices and
          communications hereunder. Any payments for the account of any
          Designated Lender shall be paid to its Designating Lender as Agent for
          such Designated Lender and neither the Borrower nor the Agent shall be
          responsible for any Designating Lender's application of such payments.
          In addition, any Designated Lender may (1) with notice to, but without
          the consent of the Borrower or the Agent, assign all or portions of
          its interests in any Loans to its Designating Lender or to any
          financial institution consented to by the Agent providing liquidity
          and/or credit facilities to or for the account of such Designated
          Lender and (2) subject to advising any such Person that such
          information is to be treated as confidential in accordance with
          Section 9.11, disclose on a confidential basis any non-public
          information relating to its Loans to any rating agency, commercial
          paper dealer or provider of any guarantee, surety or credit or
          liquidity enhancement to such Designated Lender.

     (ii) Each party to this Agreement hereby agrees that it shall not institute
          against, or join any other Person in instituting against, any
          Designated Lender any bankruptcy, reorganization, arrangement,
          insolvency or liquidation proceeding or other proceedings under any
          federal or state bankruptcy or similar law for one year and a day
          after the payment in full of all outstanding senior indebtedness of
          any Designated Lender; provided that the Designating Lender for each
          Designated Lender hereby agrees to indemnify, save and hold harmless
          each other party hereto for any loss, cost, damage and expense arising
          out of its inability to institute any such proceeding against such
          Designated Lender. This Section 12.1.2 shall survive the termination
          of this Agreement.

     12.2. Participations.

          12.2.1 Permitted Participants; Effect. Any Lender may at any time sell
     to one or more banks or other entities ("Participants") participating
     interests in any Outstanding Credit Exposure of such Lender, any Note held
     by such Lender, any Commitment of such Lender or any other interest of such
     Lender under the Loan Documents. In the event of any such sale by a Lender
     of participating interests to a Participant, such Lender's obligations
     under the Loan Documents shall remain unchanged, such Lender shall remain
     solely responsible to the other parties hereto for the performance of such
     obligations, such Lender shall remain the owner of its Outstanding Credit
     Exposure and the holder of any Note issued to it in evidence thereof for
     all purposes under the Loan Documents, all amounts payable by the Borrower
     under this Agreement shall be determined as if such Lender had not sold
     such participating interests, and the Borrower and the Agent shall continue
     to deal solely and directly with such Lender in connection with such
     Lender's rights and obligations under the Loan Documents.

          12.2.2 Voting Rights. Each Lender shall retain the sole right to
     approve, without the consent of any Participant, any amendment,
     modification or waiver of any provision of the Loan Documents other than
     any amendment, modification or waiver with respect to any Credit Extension
     or Commitment in which such Participant has an interest which would require
     consent of all of the Lenders pursuant to the terms of Section 8.2.

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          12.2.3 Benefit of Certain Provisions. The Borrower agrees that each
     Participant shall be deemed to have the right of setoff provided in Section
     11.1 in respect of its participating interest in amounts owing under the
     Loan Documents to the same extent as if the amount of its participating
     interest were owing directly to it as a Lender under the Loan Documents,
     provided that each Lender shall retain the right of setoff provided in
     Section 11.1 with respect to the amount of participating interests sold to
     each Participant. The Lenders agree to share with each Participant, and
     each Participant, by exercising the right of setoff provided in Section
     11.1, agrees to share with each Lender, any amount received pursuant to the
     exercise of its right of setoff, such amounts to be shared in accordance
     with Section 11.2 as if each Participant were a Lender. The Borrower
     further agrees that each Participant shall be entitled to the benefits of
     Sections 3.1, 3.2, 3.4 and 3.5 to the same extent as if it were a Lender
     and had acquired its interest by assignment pursuant to Section 12.3,
     provided that (i) a Participant shall not be entitled to receive any
     greater payment under Section 3.1, 3.2 or 3.5 than the Lender who sold the
     participating interest to such Participant would have received had it
     retained such interest for its own account, unless the sale of such
     interest to such Participant is made with the prior written consent of the
     Borrower, and (ii) any Participant not incorporated under the laws of the
     United States of America or any State thereof agrees to comply with the
     provisions of Section 3.5 to the same extent as if it were a Lender.

          12.3. Assignments.

          12.3.1 Permitted Assignments. Any Lender may at any time assign to one
     or more banks or other entities ("Purchasers") all or any part of its
     rights and obligations under the Loan Documents. Such assignment shall be
     evidenced by an agreement substantially in the form of Exhibit C or in such
     other form as may be agreed to by the parties thereto (each such agreement,
     an "Assignment Agreement"). Each such assignment with respect to a
     Purchaser which is not a Lender or an Affiliate of a Lender or an Approved
     Fund shall, unless otherwise consented to in writing by the Borrower and
     the Agent, either be in an amount equal to the entire applicable
     Outstanding Credit Exposure of the assigning Lender or (unless each of the
     Agent and, prior to the occurrence and continuance of a Default, the
     Borrower, otherwise consents) be in an aggregate amount not less than
     $5,000,000. The amount of the assignment shall be based on the Outstanding
     Credit Exposure subject to the assignment, determined as of the date of
     such assignment or as of the "Trade Date," if the "Trade Date" is specified
     in the Assignment Agreement.

          12.3.2 Consents. The consent of the Borrower shall be required prior
     to an assignment becoming effective unless the Purchaser is a Lender, an
     Affiliate of a Lender or an Approved Fund (other than a Lender or Affiliate
     of a Lender or an Approved Fund that becomes a Lender solely by means of
     the settlement of a credit derivative), provided that the consent of the
     Borrower shall not be required if (i) a Default or Unmatured Default has
     occurred and is continuing or (ii) if such assignment is in connection with
     the physical settlement of any Lender's obligations to direct or indirect
     contractual counterparties in credit derivative transactions relating to
     the Loans; provided, that the assignment without the Borrower's consent
     pursuant to clause (ii) shall not increase the Borrower's liability under
     Section 3.5. The consent of the Agent shall be required prior

                                       65

<PAGE>

     to an assignment becoming effective unless the Purchaser is a Lender, an
     Affiliate of a Lender or an Approved Fund (other than a Lender or Affiliate
     of a Lender or an Approved Fund that becomes a Lender solely by means of
     the settlement of a credit derivative). Any consent required under this
     Section 12.3.2 shall not be unreasonably withheld or delayed.

          12.3.3 Effect; Effective Date. Upon (i) delivery to the Agent of an
     Assignment Agreement, together with any consents required by Sections
     12.3.1 and 12.3.2, and (ii) payment of a $3,500 fee to the Agent by the
     assigning Lender or the Purchaser for processing such assignment (unless
     such fee is waived by the Agent or unless such assignment is made to such
     assigning Lender's Affiliate), such assignment shall become effective on
     the effective date specified in such assignment. The Assignment Agreement
     shall contain a representation and warranty by the Purchaser to the effect
     that none of the funds, money, assets or other consideration used to make
     the purchase and assumption of the Commitment and Outstanding Credit
     Exposure under the applicable Assignment Agreement constitutes "plan
     assets" as defined under ERISA and that the rights, benefits and interests
     of the Purchaser in and under the Loan Documents will not be "plan assets"
     under ERISA. On and after the effective date of such assignment, such
     Purchaser shall for all purposes be a Lender party to this Agreement and
     any other Loan Document executed by or on behalf of the Lenders and shall
     have all the rights, benefits and obligations of a Lender under the Loan
     Documents, to the same extent as if it were an original party thereto, and
     the transferor Lender shall be released with respect to the Outstanding
     Credit Exposure assigned to such Purchaser without any further consent or
     action by the Borrower, the Lenders or the Agent. In the case of an
     assignment covering all of the assigning Lender's rights, benefits and
     obligations under this Agreement, such Lender shall cease to be a Lender
     hereunder but shall continue to be entitled to the benefits of, and subject
     to, those provisions of this Agreement and the other Loan Documents which
     survive payment of the Obligations and termination of the Loan Documents.
     Any assignment or transfer by a Lender of rights or obligations under this
     Agreement that does not comply with this Section 12.3 shall be treated for
     purposes of this Agreement as a sale by such Lender of a participation in
     such rights and obligations in accordance with Section 12.2. Upon the
     consummation of any assignment to a Purchaser pursuant to this Section
     12.3.3, the transferor Lender, the Agent and the Borrower shall, if the
     transferor Lender or the Purchaser desires that its Loans be evidenced by
     Notes, make appropriate arrangements so that, upon cancellation and
     surrender to the Borrower of the Notes (if any) held by the transferor
     Lender, new Notes or, as appropriate, replacement Notes are issued to such
     transferor Lender, if applicable, and new Notes or, as appropriate,
     replacement Notes, are issued to such Purchaser, in each case in principal
     amounts reflecting their respective Commitments (or, from and after the
     Funding Date, their respective Outstanding Credit Exposure), as adjusted
     pursuant to such assignment.

          12.3.4 Register. The Agent, acting solely for this purpose as an agent
     of the Borrower (and the Borrower hereby designates the Agent to act in
     such capacity), shall maintain at one of its offices in Chicago, Illinois a
     copy of each Assignment and Assumption delivered to it and a register (the
     "Register") for the recordation of the names and addresses of the Lenders,
     and the Commitments of, and principal amounts of and

                                       66

<PAGE>

     interest on the Loans owing to, each Lender pursuant to the terms hereof
     from time to time and whether such Lender is an original Lender or assignee
     of another Lender pursuant to an assignment under this Section 13.3. The
     entries in the Register shall be conclusive, and the Borrower, the Agent
     and the Lenders may treat each Person whose name is recorded in the
     Register pursuant to the terms hereof as a Lender hereunder for all
     purposes of this Agreement, notwithstanding notice to the contrary. The
     Register shall be available for inspection by the Borrower and any Lender,
     at any reasonable time and from time to time upon reasonable prior notice.

     12.4. Dissemination of Information. The Borrower authorizes each Lender to
disclose to any Participant or Purchaser or any other Person acquiring an
interest in the Loan Documents by operation of law (each a "Transferee") and any
prospective Transferee any and all information in such Lender's possession
concerning the creditworthiness of the Borrower and the Subsidiaries; provided
that each Transferee and prospective Transferee agrees to be bound by Section
9.11 of this Agreement.

     12.5. Tax Certifications. If any interest in any Loan Document is
transferred to any Transferee which is not organized under the laws of the
United States or any State thereof, the transferor Lender shall cause such
Transferee, concurrently with the effectiveness of such transfer, to comply with
the provisions of Section 3.5(iv).

                                  ARTICLE XIII

                                     NOTICES

     13.1. Notices; Effectiveness; Electronic Communication.

          13.1.1 Notices Generally. Except in the case of notices and other
     communications expressly permitted to be given by telephone (and except as
     provided in Section 13.1.2), all notices and other communications provided
     for herein shall be in writing and shall be delivered by hand or overnight
     courier service, mailed by certified or registered mail or sent by
     telecopier as follows:

     (i)  if to the Borrower, at its address or telecopier number set forth on
          the signature page hereof;

     (ii) if to the Agent, at its address or telecopier number set forth on the
          signature page hereof;

     (iii) if to a Lender, to it at its address (or telecopier number) set forth
          in its administrative questionnaire delivered to the Agent.

     Notices sent by hand or overnight courier service, or mailed by certified
     or registered mail, shall be deemed to have been given when received;
     notices sent by telecopier shall be deemed to have been given when sent
     (except that, if not given during normal business hours for the recipient,
     shall be deemed to have been given at the opening of business on the next
     Business Day for the recipient). Notices delivered through electronic

                                       67

<PAGE>

     communications to the extent provided in Section 13.1.2, shall be effective
     as provided in Section 13.1.2.

          13.1.2 Electronic Communications. Notices and other communications to
     the Lenders may be delivered or furnished by electronic communication
     (including e-mail and internet or intranet websites) pursuant to procedures
     approved by the Agent or as otherwise determined by the Agent, provided
     that the foregoing shall not apply to notices to any Lender pursuant to
     Article II if such Lender has notified the Agent that it is incapable of
     receiving notices under such Article by electronic communication. The Agent
     or the Borrower may, in its respective discretion, agree to accept notices
     and other communications to it hereunder by electronic communications
     pursuant to procedures approved by it or as it otherwise determines,
     provided that such determination or approval may be limited to particular
     notices or communications.

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

     13.2. Change of Address, Etc. Any party hereto may change its address or
telecopier number for notices and other communications hereunder by notice to
the other parties hereto.

                                   ARTICLE XIV

         COUNTERPARTS; INTEGRATION; EFFECTIVENESS; ELECTRONIC EXECUTION

     14.1. Counterparts; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto in different counterparts), each
of which shall constitute an original, but all of which when taken together
shall constitute a single contract. Except as provided in Article IV, this
Agreement shall become effective when it shall have been executed by the Agent
and when the Agent shall have received counterparts hereof which, when taken
together, bear the signatures of each of the parties hereto, and thereafter
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns. Delivery of an executed counterpart of a
signature page of this Agreement by telecopy shall be effective as delivery of a
manually executed counterpart of this Agreement.

     14.2. Electronic Execution of Assignments. The words "execution," "signed,"
"signature," and words of like import in any assignment and assumption agreement
shall be deemed to include electronic signatures or the keeping of records in
electronic form, each of which shall be of the same legal effect, validity or
enforceability as a manually executed

                                       68

<PAGE>

signature or the use of a paper-based recordkeeping system, as the case may be,
to the extent and as provided for in any applicable law, including the Federal
Electronic Signatures in Global and National Commerce Act, or any other state
laws based on the Uniform Electronic Transactions Act.

                                   ARTICLE XV

          CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

     15.1. CHOICE OF LAW. THE LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING A
CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS, INCLUDING 735 ILCS SECTION 105/5-1 ET SEQ.
BUT OTHERWISE WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS, OF THE STATE OF
ILLINOIS, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

     15.2. CONSENT TO JURISDICTION. THE BORROWER HEREBY IRREVOCABLY SUBMITS TO
THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR ILLINOIS STATE
COURT SITTING IN CHICAGO, ILLINOIS IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO ANY LOAN DOCUMENTS AND THE BORROWER HEREBY IRREVOCABLY AGREES THAT
ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED
IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER
HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A
COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT
THE RIGHT OF THE AGENT OR ANY LENDER TO BRING PROCEEDINGS AGAINST THE BORROWER
IN THE COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY THE BORROWER
AGAINST THE AGENT OR ANY LENDER OR ANY AFFILIATE OF THE AGENT OR ANY LENDER
INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED
TO, OR CONNECTED WITH ANY LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A COURT SITTING
IN CHICAGO, ILLINOIS.

     15.3. WAIVER OF JURY TRIAL. THE BORROWER, THE AGENT AND EACH LENDER HEREBY
WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR
INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY
WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH ANY LOAN DOCUMENT OR THE
RELATIONSHIP ESTABLISHED THEREUNDER.

                The remainder of this page is intentionally blank

                                       69

<PAGE>

     IN WITNESS WHEREOF, the Borrower, the Lenders and the Agent have executed
this Agreement as of the date first above written.

                                      PATTERSON DENTAL COMPANY,
                                      as the Borrower

                                      By: /s/ R. Stephen Armstrong
                                          --------------------------------------
                                      Print Name: R. Stephen Armstrong
                                      Title: Executive Vice President & CFO
                                         1031 Mendota Heights Road
                                         St. Paul, MN 55120

                                      Attention: R. Stephen Armstrong, Executive
                                         Vice President and Chief Financial
                                         Officer
                                      Telephone: (651) 686-1769
                                      FAX: (651) 686-8984

<PAGE>

                                      BANC ONE MEZZANINE CORPORATION,
                                      individually and as Administrative Agent

                                      By: /s/ Marsha A. Cruzan
                                          --------------------------------------
                                      Print Name: Marsha Cruzan
                                      Title: Managing Director
                                         1 Bank One Plaza
                                         Chicago, Illinois  60670

                                      Attention: Anthony Maggiore
                                         111 East Wisconsin Avenue
                                         Milwaukee, WI  53202
                                         Telephone: (414) 765-3111
                                         FAX: (414) 765-2625

<PAGE>

                                      BANK OF AMERICA, N.A.,
                                      individually and as Syndication Agent

                                      By: /s/ Philip Durand
                                          --------------------------------------
                                      Print Name: Philip S. Durand
                                      Title: Managing Director

                                      Attention: Philip S. Durand
                                         Telephone: (704) 386-4955
                                         FAX: (704) 388-6002

<PAGE>

                               COMMITMENT SCHEDULE

LENDER                           COMMITMENT
--------------------------------------------------------------------------------
Banc One Mezzanine Corporation   $300,000,000

Bank of America, N.A.            $300,000,000

AGGREGATE COMMITMENT             $600,000,000

<PAGE>

                                PRICING SCHEDULE

================================================================================
Applicable                          Level I                        Level II
Margin                              Status                         Status
--------------------------------------------------------------------------------
Eurodollar Rate                     1.00%                          1.20%
--------------------------------------------------------------------------------
Floating Rate                       0.00%                          0.00%
================================================================================

================================================================================
Applicable Fee                      Level I                        Level II
Rate                                Status                         Status
--------------------------------------------------------------------------------
Facility Fee                        0.250%                         0.300%
--------------------------------------------------------------------------------

================================================================================

          The Applicable Margin and Applicable Fee Rate shall be determined
based upon Level I until the delivery of the Financials for the fiscal period
ending October 25, 2003.

          If at any time the Borrower shall receive non-investment grade ratings
from Moody's and S&P with respect to the Borrower's senior unsecured long-term
debt securities without third-party credit enhancement, an additional premium
equal to 0.75% and 1.00% shall be added to the Applicable Margins set forth
above for Level I Status and Level II Status, respectively.

     For the purposes of this Schedule, the following terms have the following
meanings, subject to the final paragraph of this Schedule:

     "Financials" means the annual or quarterly financial statements of the
Borrower delivered pursuant to Section 6.1.1 or 6.1.2.

     "Level I Status" exists at any date if, as of the last day of the fiscal
quarter of the Borrower referred to in the most recent Financials, the Leverage
Ratio is less than 3.00 to 1.00.

     "Level II Status" exists at any date if, as of the last day of the fiscal
quarter of the Borrower referred to in the most recent Financials, the Leverage
Ratio is greater than or equal to 3.00 to 1.00.

     "Status" means Level I Status or Level II Status.

     The Applicable Margin and Applicable Fee Rate shall be determined in
accordance with the foregoing table based on the Borrower's Status as reflected
in the then most recent Financials. Adjustments, if any, to the Applicable
Margin or Applicable Fee Rate shall be effective five Business Days after the
Agent has received the applicable Financials. If the Borrower fails to deliver
the Financials to the Agent at the time required pursuant to Section 6.1, then
the Applicable Margin and Applicable Fee Rate shall be the highest Applicable
Margin and Applicable Fee Rate set forth in the foregoing table until five days
after such Financials are so delivered.EXHIBIT 4.13

 EXHIBIT 4.13 
  
 TWELFTH SUPPLEMENTAL INDENTURE TO 
 AMENDED AND
RESTATED INDENTURE 
  
 TWELFTH SUPPLEMENTAL INDENTURE, dated as of
November 6, 2003, among HOST MARRIOTT, L.P., a Delaware limited partnership (the “Company”), the Subsidiary Guarantors signatory to this Twelfth Supplemental Indenture and THE BANK OF NEW YORK, as Trustee (the “Trustee”) to the
Amended and Restated Indenture, dated as of August 5, 1998, as amended and supplemented through the date of this Twelfth Supplemental Indenture (the “Indenture”). 
  
 RECITALS 
  
 WHEREAS, the Company, its Parents, certain of the Subsidiary Guarantors and HSBC Bank USA (f/k/a Marine Midland Bank) executed and delivered the Amended
and Restated Indenture, dated as of August 5, 1998, amending and restating the form of Indenture previously filed as Exhibit 4.1 to the Registration Statement (No. 333-50729) filed with the Securities and Exchange Commission (“Commission”)
on Form S-3 by the Company, its Parents and certain of the Subsidiary Guarantors; 
  
 WHEREAS, the Company and the Subsidiary Guarantors desire to create two series of Securities to be issued under the Indenture, as hereby supplemented, to be known as (i) the 7 1/8% Series J Senior Notes due 2013 and Subsidiary Guarantees thereof of the Subsidiary Guarantors (hereinafter, the
“Series J Notes”) and (ii) the 7 1/8% Series K Senior Notes due 2013 and the Subsidiary Guarantees
therof of the Subsidiary Guarantors to be exchanged for the Series J Notes (hereinafter, the “Series K Notes”); 
  
 WHEREAS, Section 9.1(e) of the Indenture provides that the Company, the Subsidiary Guarantors and the Trustee may amend or supplement the Indenture
without the written consent of the Holders of the outstanding Securities to provide for the issuance of and establish the form and terms and conditions of Securities of any Series as permitted by the Indenture; 
  
 WHEREAS, all acts and things prescribed by the Indenture, by law and by the
Certificate of Incorporation and the Bylaws of the Company, the Subsidiary Guarantors and the Trustee necessary to make this Twelfth Supplemental Indenture a valid instrument legally binding on the Company, the Subsidiary Guarantors and the Trustee,
in accordance with its terms, have been duly done and performed; and 
  
 WHEREAS, all conditions precedent to amend or supplement the Indenture have been met. 

 NOW, THEREFORE, to comply with the provisions of the Indenture, and in consideration of the above
premises, the Company, the Subsidiary Guarantors and the Trustee covenant and agree as follows: 
  
 ARTICLE 1 
  
 Section 1.01
Nature of Supplemental Indenture. This Twelfth Supplemental Indenture supplements the Indenture and does and shall be deemed to form a part of, and shall be construed in connection with and as part of, the Indenture for any and all purposes.

  
 Section 1.02 Establishment of New Series. Pursuant to
Section 2.2 of the Indenture, there is hereby established the Series J Notes and the Series K Notes (collectively, the “7 1/8% Notes”) having the terms, in addition to those set forth in the Indenture and this Twelfth Supplemental Indenture, set forth in the form of 7 1/8% Notes, attached to this Twelfth Supplemental Indenture as Exhibit A, which is incorporated herein as a part of this Twelfth Supplemental Indenture. In addition to the initial
aggregate principal amount of Series J Notes issued on the Series Issue Date, the Company may issue additional Series J Notes (the “Additional Notes”) under the Indenture and this Twelfth Supplemental Indenture in accordance with Section
2.2 of the Indenture and Section 4.7 of the Indenture, as supplemented by Section 5.01 below of this Twelfth Supplemental Indenture. 
  
 Section 1.03 Redemption. (a) At any time prior to November 1, 2008, the Company may redeem the 7 1/8% Notes in whole but not in part at any time at a Redemption Price equal to 100% of the principal amount thereof plus the Make-Whole Premium, together with
accrued and unpaid interest thereon, if any, to the applicable Redemption Date (subject to the right of Holders of record on the relevant Record Date to receive interest). 
  
 (b) At any time on or after November 1, 2008, the Company may redeem the 7 1/8% Notes for cash at its option, in whole or in part, at the following Redemption Prices (expressed as percentages of the principal amount) if redeemed
during the 12-month period commencing November 1 of the years indicated below, in each case, together with accrued and unpaid interest, if any, thereon to the applicable Redemption Date (subject to the right of Holders of record on the relevant
Record Date to receive interest due on an Interest Payment Date that is on or prior to the applicable Redemption Date): 
  

	 Year

	  	Percentage

	 
	 2008
	  	103.563	%
	 2009
	  	102.375	%
	 2010
	  	101.188	%
	 2011 and thereafter
	  	100.000	%

 (c) Prior to November 1, 2006, the Company may redeem from time to time up to 35% of the aggregate
principal amount of the 7 1/8% Notes outstanding at a Redemption Price equal to 107.125% of the principal amount
thereof, together with accrued and unpaid interest thereon, if any to the applicable Redemption Date (subject to the right of Holders of record on the relevant Record Date to receive interest due on an Interest Payment Date that is on or prior to
the applicable Redemption Date) with the Net Cash Proceeds of one or more Equity Offerings; provided, that at least 65% of the aggregate principal amount of the 7 1/8% Notes originally issued on the Series Issue Date remain outstanding after such redemption; and provided, further, that such redemption shall occur within 90 days
after the date on which any such Equity Offering is consummated. 
  
 (d) The 7 1/8% Notes will not have the benefit of any sinking fund.

  
 (e) Notice of a redemption of the 7 1/8% Notes made pursuant to this Section 1.03 shall be given in the manner set forth in Section 3.3 of the Indenture;
provided, however, that any such notice need not set forth the Redemption Price but need only set forth the calculation thereof as described in subsection (a) of this Section 1.03. The Redemption Price, calculated as aforesaid, shall be set
forth in an Officer’s Certificate delivered by the Company to the Trustee no later than one Business Day prior to the Redemption Date. 
  
 ARTICLE 2 
  
 Section 2.01 “Subsidiary Guarantors” means, with respect to the 7 1/8% Notes, (A) the Subsidiary Guarantors listed in Section 2.03 below and (B) any Future Subsidiary Guarantors that become Subsidiary Guarantors pursuant to the terms of the
Indenture, but excluding any Persons whose Guarantees have been released pursuant to the terms of the Indenture. The provisions of Article 12 of the Indenture will be applicable to the 7 1/8% Notes. 
  
  
 Section 2.02 The second sentence of the definition of “Subsidiary
Guarantee” set forth in Section 1.1 of the Indenture shall read, for purposes of the 7 1/8% Notes, as
follows: “Each Subsidiary Guarantee with respect to the 7 1/8% Notes will be a senior obligation of the
Subsidiary Guarantor and will be full and unconditional regardless of the enforceability of the 7 1/8% Notes, the
Twelfth Supplemental Indenture or the Indenture.” 
  
 Section 2.03 The following entities shall constitute the “Subsidiary Guarantors” with respect to the 7 1/8% Notes, the Series A Notes, the Series B Notes, the Series C Notes, the Series E Notes, the Series G Notes and the Series I Notes until 
  

 3 

 such time as their guarantees are released in accordance with the terms of the Indenture: 
  

	 	(1)	Airport Hotels LLC; 

	 	(2)	Host of Boston, Ltd.; 

	 	(3)	Host of Houston, Ltd; 

	 	(4)	Host of Houston 1979; 

	 	(5)	Chesapeake Financial Services LLC; 

	 	(6)	City Center Interstate Partnership LLC; 

	 	(7)	HMC Retirement Properties, L.P.; 

	 	(8)	HMH Marina LLC; 

	 	(9)	Farrell’s Ice Cream Parlour Restaurants LLC; 

	 	(10)	HMC Atlanta LLC; 

	 	(11)	HMC BCR Holdings LLC; 

	 	(12)	HMC Burlingame LLC; 

	 	(13)	HMC California Leasing LLC; 

	 	(14)	HMC Capital LLC; 

	 	(15)	HMC Capital Resources LLC; 

	 	(16)	HMC Park Ridge LLC; 

	 	(17)	HMC Partnership Holdings LLC; 

	 	(18)	Host Park Ridge LLC; 

	 	(19)	HMC Suites LLC; 

	 	(20)	HMC Suites Limited Partnership; 

	 	(21)	PRM LLC; 

	 	(22)	Wellsford-Park Ridge HMC Hotel Limited Partnership; 

	 	(23)	YBG Associates LLC; 

	 	(24)	HMC Chicago LLC; 

	 	(25)	HMC Desert LLC; 

	 	(26)	HMC Palm Desert LLC; 

	 	(27)	MDSM Finance LLC; 

	 	(28)	HMC Diversified LLC; 

	 	(29)	HMC East Side II LLC; 

	 	(30)	HMC Gateway LLC; 

	 	(31)	HMC Grand LLC; 

	 	(32)	HMC Hanover LLC; 

	 	(33)	HMC Hartford LLC; 

	 	(34)	HMC Hotel Development LLC; 

	 	(35)	HMC HPP LLC; 

	 	(36)	HMC IHP Holdings LLC; 

	 	(37)	HMC Manhattan Beach LLC; 

	 	(38)	HMC Market Street LLC; 

	 	(39)	New Market Street LP; 

	 	(40)	HMC Georgia LLC; 

  

 4 

	 	(41)	HMC Mexpark LLC; 

	 	(42)	HMC Polanco LLC; 

	 	(43)	HMC NGL LLC; 

	 	(44)	HMC OLS I L.P.; 

	 	(45)	HMC OP BN LLC; 

	 	(46)	HMC Pacific Gateway LLC; 

	 	(47)	HMC PLP LLC; 

	 	(48)	Chesapeake Hotel Limited Partnership; 

	 	(49)	HMC Potomac LLC; 

	 	(50)	HMC Properties I LLC; 

	 	(51)	HMC Properties II LLC; 

	 	(52)	HMC SBM Two LLC; 

	 	(53)	HMC Seattle LLC; 

	 	(54)	HMC SFO LLC; 

	 	(55)	HMC Swiss Holdings LLC; 

	 	(56)	HMC Waterford LLC; 

	 	(57)	HMH General Partner Holdings LLC; 

	 	(58)	HMH Norfolk LLC; 

	 	(59)	HMH Norfolk, L.P.; 

	 	(60)	HMH Pentagon LLC; 

	 	(61)	HMH Restaurants LLC; 

	 	(62)	HMH Rivers LLC; 

	 	(63)	HMH Rivers, L.P.; 

	 	(64)	HMH WTC LLC; 

	 	(65)	HMP Capital Ventures LLC; 

	 	(66)	HMP Financial Services LLC; 

	 	(67)	Host La Jolla LLC; 

	 	(68)	City Center Hotel Limited Partnership; 

	 	(69)	Times Square LLC; 

	 	(70)	Ivy Street LLC; 

	 	(71)	Market Street Host LLC; 

	 	(72)	MFR of Illinois LLC; 

	 	(73)	MFR of Vermont LLC; 

	 	(74)	MFR of Wisconsin LLC; 

	 	(75)	Philadelphia Airport Hotel LLC; 

	 	(76)	PM Financial LLC; 

	 	(77)	PM Financial LP; 

	 	(78)	HMC Property Leasing LLC; 

	 	(79)	HMC Host Restaurants LLC; 

	 	(80)	Santa Clara HMC LLC; 

	 	(81)	S.D. Hotels LLC; 

	 	(82)	Times Square GP LLC; 

	 	(83)	Durbin LLC; 

  

 5 

	 	(84)	HMC HT LLC; 

	 	(85)	HMC JWDC GP LLC; 

	 	(86)	HMC JWDC LLC; 

	 	(87)	HMC OLS I LLC; 

	 	(88)	HMC OLS II L.P.; 

	 	(89)	HMT Lessee Parent LLC; 

	 	(90)	HMC/Interstate Ontario, L.P.; 

	 	(91)	HMC/Interstate Manhattan Beach, L.P.; 

	 	(92)	Host/Interstate Partnership, L.P.; 

	 	(93)	HMC/Interstate Waterford, L.P.; 

	 	(94)	Ameliatel; 

	 	(95)	HMC Amelia I LLC; 

	 	(96)	HMC Amelia II LLC; 

	 	(97)	Rockledge Hotel LLC; 

	 	(98)	Fernwood Hotel LLC; 

	 	(99)	HMC Copley LLC; 

	 	(100)	HMC Headhouse Funding LLC; 

	 	(101)	Ivy Street Hopewell LLC; 

	 	(102)	HMC Diversified American Hotels, L.P.; and 

	 	(103)	Potomac Hotel Limited Partnership. 

  
 By execution of this Twelfth Supplemental Indenture, each of the Subsidiary Guarantors makes and confirms the guarantees set forth in Section 12.1 of the
Indenture and shall be deemed to have signed the notation of guarantee set forth on the Securities as provided in Section 12.2 of the Indenture. 
  
 ARTICLE 3 
  
 Section 3.01 Subject to the further provisions of this Article 3 and Article 5 of this Twelfth Supplemental Indenture, the covenants set forth in Article
4 of the Indenture shall be applicable to the Notes. By virtue of the occurrence of the REIT Conversion, Section 4.15 of the Indenture (as replaced and superceded by Section 5.03 of this Twelfth Supplemental Indenture) is applicable, and Section 4.9
of the Indenture is inapplicable, to the 7 1/8% Notes. 
  
 Section 3.02 The provisions of Sections 4.10 and 4.11 of the Indenture and
Section 5.02, 5.03 and 5.04 of the Twelfth Supplemental Indenture shall be applicable to the 7 1/8% Notes only
for so long as and during any time that such 7 1/8% Notes are not rated Investment Grade.

  
 Section 3.03 For avoidance of doubt, the
definition of “gaap” contained in the Indenture shall apply in all instances to the 7 1/8% Notes and
the provisions of Section 1.4(c) of the Indenture shall not apply in any instance to the 7 1/8% Notes.

  

 6 

 Section 3.04 Section 9.1 of the Indenture is hereby supplemented by the following clause solely with
respect to the 7 1/8% Notes: 
  
 “(k) to conform the text of this Indenture or the Notes to any provision of the “Description of Notes”
section of the Company’s Offering Memorandum dated October 27, 2003, relating to the initial offering of the 7 1/8% Notes, to the extent that such provision in that “Description of Notes” was intended to be a verbatim recitation of a provision of this Indenture of the 7 1/8% Notes.” 
  
 ARTICLE 4 
  
 Section 4.01 The following definitions are hereby added to the Indenture solely with respect to the 7 1/8% Notes: 
  
 “Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial interests in any Global Note, the rules and
procedures of the Depository, Euroclear and Clearstream that apply to such transfer or exchange at the relevant time. 
  
 “Certificated Note” means a certificated Note registered in the name of the Holder thereof and issued in accordance with Section 6.01 of
this Twelfth Supplemental Indenture, in the form of Exhibit A to this Twelfth Supplemental Indenture except that such Note shall not include the information called for by footnotes 2, 5 and 8 thereof. 
  
 “Clearstream” means Clearstream Banking S.A., or its
successors. 
  
 “Credit Facility” means the
credit facility means the credit facility established pursuant to the Credit Agreement, dated as of August 5, 1998 among the Company, Host, certain other Subsidiaries party thereto, the lenders party thereto, Bankers Trust Company, as Arranger and
Administrative Agent, and Wells Fargo Bank, N.A., The Bank of Nova Scotia and Credit Lyonnais New York Branch, as Co-Arrangers, together with all other agreements, instruments and documents executed or delivered pursuant thereto or in connection
therewith, in each case as such agreements, instruments or documents may be amended, supplemented, extended, renewed, replaced or otherwise modified or restructured from time to time (including by way of adding Subsidiaries of the Company as
additional borrowers or guarantors thereof), whether by the same or any other agent, lender or group of lenders (including by means of sales of debt securities to institutional investors) but excluding Indebtedness incurred under clause (xii) of
paragraph (d) of Section 5.04 of this Twelfth Supplemental Indenture. 
  

 7 

 “Equity Offering” means any public or private sale of (i) Qualified Capital Stock by the
Company or (ii) Capital Stock by Host REIT where the Net Cash Proceeds of such sale are contributed to the Company as a Capital Contribution substantially concurrently therewith, and in each case, other than public offerings registered on Form
S-8. 
  
 “Euroclear” means Euroclear Bank
S.A./N.V., or its successor, as operator of the Euroclear system. 
  
 “Exchange Notes” means the Series K Notes, which will be issued in exchange for Series J Notes pursuant to an Exchange Offer. 
  
 “Exchange Offer” means that the offer that is to be made by the Company and the Subsidiary Guarantors in accordance with the terms of the
Registration Rights Agreement. 
  
 “Existing Senior
Notes” means amounts outstanding from time to time of (i) the 7 7/8% Senior Notes due 2005 of the Company, (ii) the 7 7/8% Senior Notes due 2008 of the Company, (iii) the 8.45% Senior Notes due 2008 of the Company, (iv) the 8 3/8% Senior Notes due 2006 of the Company, (v) the 9 1/4% Senior
Notes due 2007 of the Company; and (vi) the 9 1/2% Senior Notes due 2007 of the Company, in each case not in
excess of amounts outstanding immediately following the Series Issue Date of the 7 1/8% Notes, less amounts
retired from time to time. 
  
 “Global Note” means a 7 1/8% Note that includes the information referred to in
footnotes 2, 5 and 8 to the form of 7 1/8% Note, attached to this Twelfth Supplemental Indenture as Exhibit A,
issued under the Indenture, that is deposited with or on behalf of and registered in the name of the Depository or a nominee of the Depository. 
  
 “Global Note Legend” means the legend set forth in Section 6.01(g)(ii) of this Twelfth Supplemental Indenture, which is required to be
placed on all Global Notes issued under the Indenture. 
  
 “HMH Properties” means HMH Properties, Inc., a Delaware corporation, which was merged into the Operating Partnership on December 16, 1998. 
  
 “Host REIT” means Host Marriott Corporation, a Maryland corporation and the successor by merger to Host,
which is the sole general partner of the Operating Partnership following the REIT Conversion, and its successors and assigns. 
  

 8 

 “Host REIT Merger” means the merger of Host with and into Host REIT, with Host REIT
surviving the merger, which merger occurred on December 29, 1998. 
  
 “Indirect Participant” means an entity that, with respect to DTC, clears through or maintains a direct or indirect custodial relationship with a Participant. 
  
 “Initial Purchasers” means Banc of America Securities LLC, Deutsche Banc Securities Inc., BNY Capital
Markets, Inc., Citigroup Global Markets Inc., Credit Lyonnais Securities (USA) Inc., Fleet Securities, Inc., Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Scotia Capital (USA) Inc., SG Cowen Securities
Corporation, UBS Securities LLC, and Wells Fargo Brokerage Services, LLC. 
  
 “Institutional Accredited Investor” means an institution that is an “accredited investor” as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act, who is not also a QIB.

  
 “Letter of Transmittal” means the letter of
transmittal to be prepared by the Company and sent to all Holders of the Series J Notes for use by such Holders in connection with the Exchange Offer. 
  
 “Make-Whole Premium” means, with respect to any 7 1/8% Note at any Redemption Date, the excess, if any, of (a) the present value of the sum of the principal amount and premium, if any, that would be payable on such 7 1/8% Note on November 1, 2008, as set forth in Section 1.03(b) of this Twelfth Supplemental Indenture and all
remaining interest payments (not including any portion of such payments of interest accrued as of the Redemption Date) to and including November 1, 2008, discounted on a semi-annual bond equivalent basis from such maturity date to the Redemption
Date at a per annum interest rate equal to the sum of the Treasury Yield (determined on the Business Day immediately preceding such Redemption Date), plus 50 basis points, over (b) the principal amount of the 7 1/8% Note being redeemed. 
  
 “Merger” means, the merger of HMH Properties with and into the Operating Partnership with the Operating
Partnership as the surviving entity, which merger occurred on December 16, 1998. 
  
 “Net Cash Proceeds” means, (i) with respect to any Asset Sale other than the sale of Capital Stock of a Restricted Subsidiary, the proceeds of such Asset Sale in the form of cash or Cash Equivalents,
including payments in respect of deferred payment obligations (to the extent corresponding to the principal, but not 

  

 9 

 
interest, component thereof) when received in the form of cash or Cash Equivalents (except to the extent such obligations are financed or sold with recourse
to the Company or any of its Restricted Subsidiaries) and proceeds from the conversion of other property received when converted to cash or Cash Equivalents, net of (a) brokerage commissions and other fees and expenses (including fees and expenses
of counsel and investment bankers) related to such Asset Sale, (b) provisions for all Taxes (including Taxes of Host REIT) actually paid or payable as a result of such Asset Sale by the Company and its Restricted Subsidiaries, taken as a whole, (c)
payments made to repay Indebtedness (other than Indebtedness subordinated in right of payment to the notes or a Subsidiary Guarantee) or any other obligations outstanding at the time of such Asset Sale that either (I) is secured by a Lien on the
property or assets sold; or (II) is required to be paid as a result of such sale, (d) amounts reserved by the Company and its Restricted Subsidiaries against any liabilities associated with such Asset Sale, including, without limitation, pension and
other post-employment benefit liabilities, liabilities related to environmental matters and liabilities under any indemnification obligations associated with such Asset Sale, all as determined on a consolidated basis in conformity with GAAP; and (e)
any Permitted REIT Distributions related to such Asset Sale (provided, however, that with respect to an Asset Sale by any Person other than the Company or a Wholly Owned Subsidiary, Net Cash Proceeds shall be the above amount multiplied by
the Company’s (direct or indirect) percentage ownership interest in such Person); and (ii) with respect to any issuance or sale of Capital Stock, the proceeds of such issuance or sale in the form of cash or Cash Equivalents, including payments
in respect of deferred payment obligations (to the extent corresponding to the principal, but not interest, component thereof) when received in the form of cash or Cash Equivalents (except to the extent such obligations are financed or sold with
recourse to the Company or any of its Restricted Subsidiaries) and proceeds from the conversion of other property received when converted to cash or Cash Equivalents, net of attorney’s fees, accountant’s fees, underwriters’ or
placement agents’ fees, discounts or commissions and brokerage, consultant and other fees incurred in connection with such issuance or sale and net of tax paid or payable as a result thereof (provided, however, that with respect to an issuance
or sale by any Person other than the Company or a Wholly Owned Subsidiary, Net Cash Proceeds shall be the above amount multiplied by the Company’s (direct or indirect) percentage ownership interest in such Person). 
  
 “Notes” means collectively, the Series J Notes and, when and
if issued as provided in the Registration Rights Agreement, the Exchange Notes. 
  
 “Offering Memorandum” means the Offering Memorandum of the Company and the Subsidiary Guarantors dated October 27, 2003 with respect to the 7 1/8% Notes. 
  

 10 

 “Officer’s Certificate” means a certificate signed on behalf of the Company or
Subsidiary Guarantor, as applicable, by an officer of the Company or Subsidiary Guarantor, as applicable, who must be the principal executive officer, the principal financial officer, the treasurer or the principal accounting officer of the Company
or Subsidiary Guarantor, as applicable. 
  
 “Participant” means, with respect to the Depository, Euroclear or Clearstream, a Person who has an account with the Depository, Euroclear or Clearstream, respectively (and, with respect to The Depository Trust Company,
shall include Euroclear and Clearstream). 
  
 “Paying
Agent” means, until otherwise designated, the Trustee. 
  
 “Permitted REIT Distributions” means, so long as Host REIT believes in good faith after reasonable diligence that Host REIT qualifies as REIT under the Code, a declaration or payment of any dividend or the making of any
distribution: (i) to Host REIT equal to the greater of: (a) the amount estimated by Host REIT in good faith after reasonable diligence to be necessary to permit Host REIT to distribute to its shareholders with respect to any calendar year (whether
made during such year or after the end thereof) 100% of the “real estate investment trust taxable income” of Host REIT within the meaning of Code Section 857(b)(2), determined without regard to deductions for dividends paid and the
exclusions set forth in Code Sections 857(b)(2)(C), (D), (E) and (F) but including therein all net capital gains and net recognized built-in gains within the meaning of Treasury Regulations 1.337(d)-6 (whether or not such gains might otherwise be
excluded or excludable therefrom), or (b) the amount that is estimated by Host REIT in good faith after reasonable diligence to be necessary either to maintain Host REIT’s status as a REIT under the Code for any calendar year or to enable Host
REIT to avoid the payment of any tax for any calendar year that could be avoided by reason of a distribution by Host REIT to its shareholders, with such distributions to be made as and when determined by Host REIT, whether during or after the end of
the relevant calendar year, in either the case of (a) or (b) if: (I) the aggregate principal amount of all outstanding Indebtedness (other than the QUIPs Debt) of the Company and its Restricted Subsidiaries on a consolidated basis at such time is
less than 80% of Adjusted Total Assets of the Company; and (II) no Default or Event of Default shall have occurred and be continuing; and (ii) to any Person in respect of any Units, which distribution is required as a result of or a condition to the
distribution or payment of such dividend or distribution to Host REIT. 
  
 “Private Placement Legend” means the legend set forth in Section 6.01(g)(i) of this Twelfth Supplemental Indenture to be placed on all Series J Notes issued under the Indenture except where otherwise permitted by the
provisions of the Indenture. 
  

 11 

 “QIB” means a “qualified institutional buyer” as defined in Rule 144A.

  
 “Qualified Assets” means (i) Capital Stock of
the Company or any of its Subsidiaries or of other Subsidiaries of Host, Host REIT and each other Parent of the Company substantially all of whose sole assets are direct or indirect interests in Capital Stock of the Company, and (ii) other assets
related to corporate operations of Host, Host REIT and each other Parent of the Company which are de minimus in relation to those of Host, Host REIT and each other Parent of the Company and their Restricted Subsidiaries, taken as a whole.

  
 “Refinancing Indebtedness” means Indebtedness
or Disqualified Stock (i) issued in exchange for, or the proceeds from the issuance and sale of which are used substantially concurrently to repay, redeem, defease, refund, refinance, discharge or otherwise retire for value, in whole or in part, or
(ii) constituting an amendment, modification or supplement to, or a deferral or renewal of ((i) and (ii) above are, collectively, a “Refinancing”), any Indebtedness or Disqualified Stock in a principal amount (or accreted value, if
applicable) or, in the case of Disqualified Stock, liquidation preference, not to exceed: (a) the principal amount (or accreted value, if applicable) or, in the case of Disqualified Stock, liquidation preference, of the Indebtedness or Disqualified
Stock so refinanced, plus (b) all accrued interest on the Indebtedness and the amount of all expenses and premiums incurred in connection therewith), provided that Refinancing Indebtedness (other than a revolving line of credit from a
commercial lender or other Indebtedness whose proceeds are used to repay a revolving line of credit from a commercial lender to the extent such revolving line of credit or other Indebtedness was not put in place for purposes of evading the
limitations described in this definition) shall: (x) not have an Average Life shorter than the Indebtedness or Disqualified Stock to be so refinanced at the time of such Refinancing, and (y) be subordinated in right of payment to the rights of
holders of the notes if the Indebtedness or Disqualified Stock to be refinanced was so subordinated. 
  
 “Registration Rights Agreement” means the Registration Rights Agreement, dated as of November 6, 2003, by and among the Company, the
Subsidiary Guarantors and the Initial Purchasers, as such agreement may be amended, modified or supplemented from time to time. 
  
 “Regulation S” means Regulation S promulgated under the Securities Act, as it may be amended from time to time, and any successor
provision thereto. 
  
 “Regulation S Global Note”
means a Global Note issued in accordance with Regulation S. 
  

 12 

 “Regulation S Restricted Global Note” means a Regulation S Global Note until the
expiration of the Regulation S Restricted Period; such Regulation S Global Note constitutes a Restricted Global Note. 
  
 “Regulation S Restricted Period” means the 40-day period beginning on the later of (i) the day that the Initial Purchasers advise the
Company and the Trustee in writing is the first day on which the Notes were offered to persons other than distributors (as defined in Regulation S) in reliance on Regulation S and (ii) November 6, 2003. 
  
 “Regulation S Unrestricted Global Note” means a Regulation S
Global Note following the expiration of the Regulation S Restricted Period; such Regulation S Global Note constitutes an Unrestricted Global Note. 
  
 “Restricted Certificated Note” means a Certificated Note that includes the information called for in footnotes 6 and 7 (and not in
footnotes 2, 5 and 8) to the form of 7 1/8% Note, attached to this Twelfth Supplemental Indenture as Exhibit A,
issued under the Indenture. 
  
 “Restricted Global
Note” means a Global Note that includes the information called for in footnotes 2, 5, 6, 7 and 8 to the form of Note, attached to this Twelfth Supplemental Indenture as Exhibit A, issued under the Indenture; provided, that in no case
shall an Exchange Note issued in accordance with the Indenture and the terms of the Registration Rights Agreement be a Restricted Global Note; provided, further, that any Regulation S Global Note shall, following the completion of the
Regulation S Restricted Period, automatically become an Unrestricted Global Note for the purposes of this Twelfth Supplemental Indenture, regardless of the information appearing on such Global Note. 
  
 “Rule 144A” means Rule 144A promulgated under the Securities
Act, as it may be amended from time to time, and any successor provision thereto. 
  
 “Rule 144A Global Note” means a Global Note issued in accordance with Rule 144A. 
  
 “Rule 144A Restricted Global Note” means a Restricted Global Note issued in accordance with Rule 144A. 
  
 “Series Issue Date” means with respect to any series of
Indebtedness issued under the Indenture, the date of any notes of such series are first issued. 
  
 “Shelf Registration Statement” shall have the meaning set forth in the Registration Rights Agreement. 
  

 13 

 “SLC” means HMC Senior Communities, Inc., a Delaware corporation, and its successor
Crestline Capital Corporation, a Maryland corporation, and its successors and assigns. 
  
 “Transfer Restricted Notes” means Series J Notes that include the information called for by footnotes 6 and 7 to the form of 7 1/8% Note, attached to this Twelfth Supplemental Indenture as Exhibit A, issued under the Indenture. 
  
 “Treasury Yield” means the yield to maturity at the time of computation of United States Treasury
securities with a constant maturity (as compiled by and published in the most recent Federal Reserve Statistical Release H.15 (519) which has become publicly available at least two Business Days prior to the date fixed for redemption (or, if such
Statistical Release is no longer published, any publicly available source of similar data)) most nearly equal to the then remaining average life of the 7 1/8% Notes, provided that if the average life of the 7 1/8%
Notes is not equal to the constant maturity of a United States Treasury security for which a weekly average yield is given, the Treasury yield shall be obtained by linear interpolation (calculated to the nearest one-twelfth of a year) from the
weekly average yields of United States Treasury securities for which such yields are given, except that if the average life of the 7 1/8% Notes is less than one year, the weekly average yield on actually traded United States Treasury securities adjusted to a constant maturity of one year shall be used. 
  
 “Unrestricted Certificated Notes” means one or more
Certificated Notes that do not include and are not required to include the information called for by footnotes 6 and 7 to the form 7 1/8% Note, attached to this Twelfth Supplemental Indenture as Exhibit A, issued under the Indenture. 
  
 “Unrestricted Global Note” means a permanent Global Note in the form of Exhibit A attached to this Twelfth Supplemental Indenture that
includes the information referred to in footnotes 2, 5 and 8 thereof, and that is deposited with or on behalf of and registered in the name of the Depository. 
  

ARTICLE 5 
  
 Section 5.01 Limitation on Incurrences of Indebtedness and Issuance of Disqualified Stock. For purposes of 7 1/8% Notes, Section 4.7 of the Indenture is hereby replaced and superceded by the following covenant and the following
covenant shall apply to the 7 1/8% Notes: 
  
 (a) Except as set forth below, neither the Company, the Subsidiary
Guarantors nor any of their respective Restricted Subsidiaries will, directly or indirectly, Incur any Indebtedness (including Acquired Indebtedness) or issue any 

  

 14 

 
Disqualified Stock. Notwithstanding the foregoing sentence, if, on the date of any such Incurrence or issuance, after giving effect to, on a pro forma basis,
such Incurrence or issuance and the receipt and application of the proceeds therefrom: 
  
 (i) the aggregate amount of all outstanding Indebtedness (other than the QUIPs Debt) and the Disqualified Stock of the Company and the Subsidiary Guarantors and their respective Restricted Subsidiaries (including
amounts of Refinancing Indebtedness outstanding pursuant to paragraph (d)(iii) hereof or otherwise), determined on a consolidated basis (it being understood that the amounts of Indebtedness and Disqualified Stock of Restricted Subsidiaries shall be
consolidated with ours only to the extent of the Company’s proportionate interest in such Restricted Subsidiaries), without duplication, is less than or equal to 65% of the Adjusted Total Assets of the Company; and 
  
 (ii) the Consolidated Coverage Ratio of the Company would be greater than or
equal to 2.0 to 1, the Company and its Restricted Subsidiaries may Incur such Indebtedness or issue such Disqualified Stock. 
  
 (b) In addition to the foregoing limitations set forth in (a) above, except as set forth below, the Company, the Subsidiary Guarantors and their
Restricted Subsidiaries will not Incur any Secured Indebtedness or Subsidiary Indebtedness. Notwithstanding the foregoing sentence, if, immediately after giving effect to the Incurrence of such additional Secured Indebtedness and/or Subsidiary
Indebtedness and the application of the proceeds thereof, the aggregate amount of all outstanding Secured Indebtedness and Subidiary Indebtedness of the Company, the Subsidiary Guarantors and their Restricted Subsidiaries (including amounts of
Refinancing Indebtedness outstanding pursuant to paragraph (d)(iii) hereof or otherwise), determined on a consolidated basis (it being understood that the amounts of Secured Indebtedness and Subsidiary Indebtedness of Restricted Subsidiaries shall
be consolidated with that of the Company only to the extent of the Company’s proportionate interest in such Restricted Subsidiaries), without duplication, is less than or equal to 45% of Adjusted Total Assets of the Company, the Company and its
Restricted Subsidiaries may Incur such Secured Indebtedness and/or Subsidiary Indebtedness. 
  
 (c) In addition to the limitations set forth in (a) and (b) above, the Company, the Subsidiary Guarantors and their Restricted Subsidiaries will maintain at all times Total Unencumbered Assets of not less than 125% of
the aggregate outstanding amount of the Unsecured Indebtedness (other than the QUIPs Debt) (including amounts of Refinancing Indebtedness outstanding pursuant to paragraph (d)(iii) hereof or otherwise) determined on a consolidated basis (it being
understood that the Unsecured Indebtedness of the Restricted Subsidiaries shall be consolidated with ours only to the extent of the Company’s proportionate interest in such Restricted Subsidiaries). 
  

 15 

 (d) Notwithstanding paragraphs (a) or (b), the Company, the Subsidiary Guarantors and their respective
Restricted Subsidiaries (except as specified below) may Incur or issue each and all of the following: 
  
 (i) Indebtedness outstanding (including Indebtedness issued to replace, refinance or refund such Indebtedness) under the Credit Facility at any time in an
aggregate principal amount, together with all Indebtedness Incurred pursuant to clause (xii) and (xiii) of this paragraph (d), not to exceed $1.5 billion, less any amount repaid subsequent to the Series Issue Date as provided under Section 5.04 of
the Twelfth Supplemental Indenture (including that, in the case of a revolver or similar arrangement, such commitment is permanently reduced by such amount); 
  
 (ii) Indebtedness or Disqualified Stock owed: 
  
 a) to the Company; or 
  
 b) to any Subsidiary Guarantor; provided that any event which results in any Restricted Subsidiary holding such Indebtedness or
Disqualified Stock ceasing to be a Restricted Subsidiary or any subsequent transfer of such Indebtedness or Disqualified Stock (other than to us or a Subsidiary Guarantor) shall be deemed, in each case, to constitute an Incurrence of such
Indebtedness or issuance of Disqualified Stock not permitted by this clause (ii); 
  
 (iii) Refinancing Indebtedness with respect to outstanding Indebtedness (other than Indebtedness Incurred under clause (i), (ii), (iv), (vi), (viii), (xii) or (xiii) of this paragraph) and any refinancings thereof;

  
 (iv) Indebtedness: 
  
 (A) in respect of performance, surety or appeal bonds
Incurred in the ordinary course of business; 
  
 (B) under Currency Agreements and Interest Swap and Hedging Obligations; provided that such agreements: 
  
 (a) are designed solely to protect the Company, the Subsidiary Guarantors or any of their Restricted Subsidiaries against fluctuations in
foreign currency exchange rates or interest rates; and 
  
 (b) do not increase the Indebtedness of the obligor outstanding, at any time other than as a result of fluctuations in foreign currency exchange rates or interest rates or by reason of fees, indemnities and compensation payable thereunder;
or 
  
 (C) arising from agreements providing for
indemnification, adjustment of purchase price or similar obligations, or from Guarantees or letters of credit, surety bonds or performance bonds securing any obligations of the Company, the Subsidiary Guarantors or any of their 

  

 16 

 
Restricted Subsidiaries pursuant to such agreements, in any case Incurred in connection with the disposition of any business, assets or Restricted Subsidiary
(other than Guarantees of Indebtedness Incurred by any Person acquiring all or any portion of such business, assets or Restricted Subsidiary for the purpose of financing such acquisition), in an amount not to exceed the gross proceeds actually
received by the Company, the Subsidiary Guarantors and their Restricted Subsidiaries on a consolidated basis in connection with such disposition; 
  
 (v) Indebtedness of the Company, to the extent the net proceeds thereof are promptly: 
  
 (A) used to purchase all of the notes tendered in a Change of Control Offer made as a result of a Change of
Control; or 
  
 (B) deposited to defease the
notes as described under Sections 8.3 and 8.4 of the Indenture; 
  
 (vi) Guarantees of the notes and Guarantees of Indebtedness of the Company or any of the Subsidiary Guarantors by any of their respective Restricted Subsidiaries; provided the guarantee of such Indebtedness is permitted by and made
in accordance with the terms of the Indenture at the time of the incurrence of such underlying Indebtedness or at the time such guarantor becomes a Restricted Subsidiary; 
  
 (vii) Indebtedness evidenced by the Securities and the Guarantees thereof and represented by the indenture up to the amounts
issued pursuant thereto as of the Issue Date; 
  
 (viii) the QUIPs
Debt; 
  
 (ix) Limited Partner Notes; and 
  
 (x) Indebtedness Incurred pursuant to the Blackstone Acquisition and any
Indebtedness of Host, its Subsidiaries, a Public Partnership or a Private Partnership incurred in connection with the REIT Conversion; 
  
 (xi) Acquired Indebtedness assumed in connection with an Asset Acquisition if, on the date of any such Incurrence, the Consolidated Coverage Ratio of the
Person or asset or assets so acquired would be greater than or equal to 2.0 to 1; provided however, that an acquisition within the meaning of clause (ii) of the definition of “Asset Acquisition,” will be deemed to be an acquisition
of a Person for purposes of determining such Consolidated Coverage Ratio; 
  
 (xii) Secured Indebtedness in an aggregate principal amount (or accreted value, if applicable) at any time outstanding, not to exceed $300.0 million, provided, however, that (A) the Incurrence of such Secured
Indebtedness is otherwise permitted pursuant to paragraph (b) above and (B) the proceeds of such Secured Indebtedness are used substantially concurrently to repay and permanently reduce 

  

 17 

 
Indebtedness outstanding under the Credit Facility (including that, in the case of a revolver or similar arrangement, such commitment is permanently reduced
by such amount); provided further, however, that Indebtedness Incurred in reliance on this clause (xii), together with all Indebtedness Incurred pursuant to clause (i) and (xiii) of this subsection (d) does not at any time exceed an aggregate
principal amount (or accreted value, if applicable), of $1.5 billion, less any amount repaid subsequent to the Series Issue Date as provided under Section 5.04 of the Twelfth Supplemental Indenture (including that, in the case of a revolver or
similar arrangement, such commitment is permanently reduced by such amount); and 
  
 (xiii) additional Indebtedness in an aggregate principal amount (or accreted value, if applicable) at any time outstanding, not to exceed $100.0 million, provided, however, that Indebtedness Incurred in
reliance on this clause (xiii), together with all Indebtedness Incurred pursuant to clause (i) and (xii) of this subsection (d) does not at any time exceed an aggregate principal amount (or accreted value, if applicable), of $1.5 billion, less any
amount repaid subsequent to the Series Issue Date as provided under Section 5.04 of the Twelfth Supplemental Indenture (including that, in the case of a revolver or similar arrangement, such commitment is permanently reduced by such amount).

  
 (e) For purposes of determining any particular amount of
Indebtedness under this Section 5.01 of this Twelfth Supplemental Indenture: 
  
 (i) Indebtedness Incurred under the Credit Facility on or prior to the Issue Date shall be treated as Incurred pursuant to clause (i) of subsection (d) of this Section 5.01 of this Twelfth Supplemental Indenture; and

  
 (ii) Guarantees, Liens or obligations with respect to letters
of credit supporting Indebtedness otherwise included in the determination of such particular amount shall not be included as additional Indebtedness. For purposes of determining compliance with this covenant, in the event that an item of
Indebtedness meets the criteria of more than one of the types of Indebtedness described in the above clauses, the Company, in its sole discretion, shall classify such item of Indebtedness as being Incurred under only one of such clauses. 

 
 Indebtedness or Disqualified Stock of any Person that is not a Restricted
Subsidiary of the Company, which Indebtedness or Disqualified Stock is outstanding at the time such Person becomes a Restricted Subsidiary of the Company (including by designation) or is merged with or into or consolidated with the Company or a
Restricted Subsidiary of the Company, shall be deemed to have been Incurred or issued at the time such Person becomes a Restricted Subsidiary of the Company or is merged with or into or consolidated with the Company, or a Restricted Subsidiary of
the Company, and Indebtedness or Disqualified Stock which is assumed at the time of the acquisition of any asset shall be deemed to have been Incurred or issued at the time of such acquisition. 
  

 18 

 Section 5.02 Limitation on Liens. For purposes of 7 1/8% Notes, Section 4.8 of the Indenture is hereby replaced and superceded by the following covenant and the following
covenant shall apply to the 7 1/8% Notes: 
  
 Neither the Company, the Subsidiary Guarantors, nor any Restricted
Subsidiary shall secure any Indebtedness under the Credit Facility or the Existing Notes by a Lien or suffer to exist any Lien on their respective properties or assets securing Indebtedness under the Credit Facility or the Existing Notes unless
effective provision is made to secure the notes equally and ratably with the Lien securing such Indebtedness for so long as Indebtedness under the Credit Facility or Existing Notes is secured by such Lien. 
  
 Section 5.03 Limitation on Restricted Payments. For purposes of
7 1/8% Notes, Section 4.15 of the Indenture is hereby replaced and superceded by the following covenant and the
following covenant shall apply to the 7 1/8% Notes: 
  
 The Company and the Subsidiary Guarantors will not, and the Company and the
Subsidiary Guarantors will not permit any of their respective Restricted Subsidiaries to, directly or indirectly, make a Restricted Payment if, at the time of, and after giving effect to, the proposed Restricted Payment: 
  
 (A) a Default or Event of Default shall have occurred and be
continuing; 
  
 (B) the Company could not Incur
at least $1.00 of Indebtedness under paragraph (a) of Section 5.01 of this Twelfth Supplemental Indenture; or 
  
 (C) the aggregate amount of all Restricted Payments (the amount, if other than in cash, the fair market value of any property used
therefor) made on and after the Issue Date shall exceed the sum of, without duplication: 
  
 (1) 95% of the aggregate amount of the Funds From Operations (or, if the Funds From Operations is a loss, minus 100% of the amount of such
loss) accrued on a cumulative basis during the period (taken as one accounting period) beginning on the first day of the fiscal quarter in which the Issue Date occurs and ending on the last day of the last fiscal quarter preceding the Transaction
Date; 
  
 (2) 100% of the aggregate Net Cash
Proceeds received by the Company after the Issue Date from the issuance and sale permitted by the Indenture of its Capital Stock (other than Disqualified Stock) to a Person who is not a Subsidiary of the Company including from an issuance to a
Person who is not a Subsidiary of the Company of any options, warrants or other rights to acquire the Capital Stock of the Company (in each case, exclusive of any Disqualified Stock or any options, warrants or other rights that are redeemable at the
option of the holder, or are required to be redeemed, prior to the Stated Maturity of the Securities or Equity Offerings to the extent used to redeem notes in compliance with the provisions set forth in Section 1.03 of this Twelfth 

  

 19 

 
Supplemental Indenture), and the amount of any Indebtedness (other than Indebtedness subordinate in right of payment to the notes) of the Company that was
issued and sold for cash upon the conversion of such Indebtedness after the Issue Date into Capital Stock (other than Disqualified Stock) of the Company, or otherwise received as Capital Contributions, exclusive of Capital Contributions to the
extent used to redeem notes in compliance with the provisions set forth under Section 1.03 of this Twelfth Supplemental Indenture; 
  
 (3) an amount equal to the net reduction in Investments (other than Permitted Investments) in any Person other than a Restricted
Subsidiary after the Issue Date resulting from payments of interest on Indebtedness, dividends, repayments of loans or advances, or other transfers of assets, in each case to the Company or any of its Restricted Subsidiaries or from the Net Cash
Proceeds from the sale of any such Investment (except, in each case, to the extent any such payment or proceeds are included in the calculation of Funds From Operations) or from designations of Unrestricted Subsidiaries or Non-Consolidated Entities
as Restricted Subsidiaries (valued in each case as provided in the definition of “Investments”); 
  
 (4) the fair market value of noncash tangible assets or Capital Stock (other than that of the Company or its Parent) representing
interests in Persons acquired after the Issue Date in exchange for an issuance of Qualified Capital Stock; and 
  
 (5) the fair market value of noncash tangible assets or Capital Stock (other than that of the Company or its Parent) representing
interests in Persons contributed as a Capital Contribution to the Company after the Issue Date. 
  
 Notwithstanding the foregoing, (i) for purposes of determining whether the Company, the Subsidiary Guarantors and their respective Restricted Subsidiaries may make a Restricted Payment representing the declaration or
payment of any dividend or other distribution in respect of Capital Stock of such Person or the Parent or any Restricted Subsidiary of such Person constituting Preferred Stock, the Consolidated Coverage Ratio of the Company contemplated by clause
(ii) of Section 5.01(a), shall be greater than or equal to 1.7 to 1 and (ii) the Company may make Permitted REIT Distributions. 
  
 Section 5.04 Limitation on Asset Sale. For purposes of 7 1/8% Notes, Section 4.12 of the Indenture is hereby replaced and superceded by the following covenant and the following covenant shall apply to the 7 1/8% Notes: 
  
 The Company and the Subsidiary Guarantors will not, and the Company and the Subsidiary Guarantors will not permit any of their respective Restricted
Subsidiaries to, consummate any Asset Sale, unless: 
  

 20 

 (i) the consideration received by the Company, the Subsidiary Guarantor or such
Restricted Subsidiary is at least equal to the fair market value of the assets sold or disposed of as determined by the Board of the Company, in good faith; and 
  
 (ii) at least 75% of the consideration received consists of cash, Cash Equivalents and/or real estate
assets; provided that, with respect to the sale of one or more real estate properties, up to 75% of the consideration may consist of indebtedness of the purchaser of such real estate properties so long as such Indebtedness is secured by a
first priority Lien on the real estate property or properties sold; and provided that, for purposes of this clause (ii) the amount of: 
  
 (A) any Indebtedness (other than Indebtedness subordinated in right of payment to the notes or a Subsidiary Guarantee) that is required to
be repaid or assumed (and is either repaid or assumed by the transferee of the related assets) by virtue of such Asset Sale and which is secured by a Lien on the property or assets sold; and 
  
 (B) any securities or other obligations received by the
Company, any Subsidiary Guarantor or any such Restricted Subsidiary from such transferee that are immediately converted by the Company, the Subsidiary Guarantor or such Restricted Subsidiary into cash (or as to which the Company, any Subsidiary
Guarantor or such Restricted Subsidiary has received at or prior to the consummation of the Asset Sale a commitment (which may be subject to customary conditions) from a nationally recognized investment, merchant or commercial bank to convert into
cash within 90 days of the consummation of such Asset Sale and which are thereafter actually converted into cash within such 90-day period) will be deemed to be cash. 
  
 In the event that the aggregate Net Cash Proceeds received by the Company, any Subsidiary Guarantors or such Restricted
Subsidiaries from one or more Asset Sales occurring on or after the Closing Date in any period of 12 consecutive months (such 12 consecutive month period, an “Asset Sale Period”) exceed 1% of Total Assets (determined as of the date closest
to the commencement of such Asset Sale Period for which a consolidated balance sheet of the Company and its Restricted Subsidiaries has been filed with the Securities and Exchange Commission or provided to the trustee pursuant to Section 4.2 of the
Indenture), then during the period commencing 180 days prior to the commencement of such Asset Sale Period and running through the date that is 12 months after the date Net Cash Proceeds so received exceeded 1% of Total Assets, an amount equal to
the Net Cash Proceeds received during such Asset Sale Period must have been or must be: (A) invested in or committed to be invested in, pursuant to a binding commitment subject only to reasonable, customary closing conditions, and providing an
amount equal to the Net Cash Proceeds are, in fact, so invested, within an additional 180 days, (x) fixed assets and property (other than notes, bonds, obligations and securities) which in the good faith reasonable judgment of the Board of the
Company will immediately constitute or be part of a Related Business of 

  

 21 

 
the Company, Subsidiary Guarantor or such Restricted Subsidiary (if it continues to be a Restricted Subsidiary) immediately following such transaction, (y)
Permitted Mortgage Investments, or (z) a controlling interest in the Capital Stock of an entity engaged in a Related Business; provided that concurrently with an Investment specified in clause (z), such entity becomes a Restricted Subsidiary;
or (B) used to repay and permanently reduce Indebtedness outstanding under the Credit Facility (including that, in the case of a revolver or similar arrangement, such commitment is permanently reduced by such amount). Pending the application of any
such Net Cash Proceeds as described above, the Company may invest such Net Cash Proceeds in any manner that is not prohibited by the Indenture. Any Net Cash Proceeds from Asset Sales that are not or were not applied or invested as provided in the
first sentence of this paragraph (including any Net Cash Proceeds which were committed to be invested as provided in such sentence but which are not in fact invested within the time period provided) will be deemed to constitute “Excess
Proceeds.” 
  
 Within 30 days following each date on which
the aggregate amount of Excess Proceeds exceeds $25 million, the Company will make an offer to purchase from the holders of the notes and holders of any of other Indebtedness of the Company ranking pari passu with the Securities from time to time
outstanding with similar provisions requiring the Company to make an offer to purchase or redeem such Indebtedness with the proceeds from such Asset Sale, on a pro rata basis, an aggregate principal amount (or accreted value, as applicable) of
Securities and such other Indebtedness equal to the Excess Proceeds on such date, at a purchase price in cash equal to 100% of the principal amount (or accreted value, as applicable) of the Securities and such other Indebtedness, plus, in each case,
accrued interest (if any) to the Payment Date. To the extent that the aggregate amount of Securities and other senior Indebtedness tendered pursuant to an Asset Sale Offer is less than the Excess Proceeds, the Company may use any remaining Excess
Proceeds for general corporate purposes. If the aggregate principal amount (or accreted value, as applicable) of Securities and such other Indebtedness tendered pursuant to an Asset Sale Offer exceeds the amount of Excess Proceeds, the Securities to
be purchased and such other Indebtedness shall be selected on a pro rata basis. Upon completion of such Offer to Purchase, the amount of Excess Proceeds shall be reset at zero. 
  
 Notwithstanding, and without complying with, any of the foregoing provisions: 
  
 (i) the Company, the Subsidiary Guarantors and their
respective Restricted Subsidiaries may, in the ordinary course of business, convey, sell, lease, transfer, assign or otherwise dispose of inventory acquired and held for resale in the ordinary course of business; 
  
 (ii) the Company, the Subsidiary Guarantors and their
respective Restricted Subsidiaries may convey, sell, lease, transfer, assign or otherwise dispose of assets pursuant to and in accordance with Article 5 and Section 4.13 of the Indenture; 
  

 22 

 (iii) the Company, the Subsidiary Guarantors and their respective Restricted Subsidiaries
may sell or dispose of damaged, worn out or other obsolete property in the ordinary course of business so long as such property is no longer necessary for the proper conduct of the business of the Company, the Subsidiary Guarantor or such Restricted
Subsidiary, as applicable; and 
  
 (iv) the
Company, the Subsidiary Guarantors and their respective Restricted Subsidiaries may exchange assets held by the Company, the Subsidiary Guarantor or a Restricted Subsidiary for one or more real estate properties and/or one or more Related Businesses
of any Person or entity owning one or more real estate properties and/or one or more Related Businesses; provided that the Board of the Company has determined in good faith that the fair market value of the assets received by the Company are
approximately equal to the fair market value of the assets exchanged by the Company. 
  
 No transaction listed in clauses (i) through (iv) inclusive shall be deemed to be an “Asset Sale.” 
  
 ARTICLE 6 
  
 Section 6.01 For purposes of the 7 1/8% Notes, Section 2.7 of the Indenture is hereby supplemented with, and where inconsistent replaced by, the following provisions: 
  
 (a) Transfer and Exchange of Global Notes. A Global Note may not be transferred as a whole except by the Depository
to a nominee of the Depository, by a nominee of the Depository to the Depository or to another nominee of the Depository, or by the Depository or any such nominee to a successor Depository or a nominee of such successor Depository. All Global Notes
will be exchanged by the Company for Certificated Notes if (i) the Company delivers to the Trustee notice from the Depository (A) that it is unwilling or unable to continue to act as Depository and a successor Depository is not appointed by the
Company within 90 days after the date of such notice from the Depository or (B) that it is no longer a clearing agency registered under the Exchange Act and a successor Depository is not appointed by the Company within 90 days after the date of such
notice from the Depository, (ii) the Company, at its option, notifies the Trustee in writing that it elects to cause the issuance of Certificated Notes or (iii) upon request of the Trustee or Holders of a majority of the aggregate principal amount
of outstanding 7 1/8% Notes if there shall have occurred and be continuing a Default or Event of Default with
respect to the 7 1/8% Notes. Upon the occurrence of any of the preceding events in (i), (ii) or (iii) above, upon
surrender by the Depositary of the Global Note, Certificated Notes shall be issued in such names as the Depository shall instruct the Trustee. Global Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 2.8 and 2.11
of the Indenture. A Global Note may not be exchanged for another 7 1/8% Note other than as provided in this
Section 6.01(a) of this Twelfth Supplemental Indenture; however, beneficial interests in a Global Note may be transferred and exchanged as provided in Section 6.01(b), (c) or (f) of this Twelfth Supplemental Indenture.

  

 23 

 (b) Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer and exchange
of beneficial interests in the Global Notes shall be effected through the Depository, in accordance with the provisions of the Indenture and the Applicable Procedures. Beneficial interests in the Restricted Global Notes shall be subject to
restrictions on transfer comparable to those set forth herein. Transfers of beneficial interests in the Global Notes also shall require compliance with either subparagraph (i) or (ii) below, as applicable, as well as one or more of the other
following subparagraphs, as applicable: 
  
 (i) Transfer of
Beneficial Interests in the Same Global Note. Beneficial interests in any Restricted Global Note may be transferred to Persons who take delivery thereof in the form of a beneficial interest in the same Restricted Global Note in accordance with
the transfer restrictions set forth in the Private Placement Legend. Beneficial interests in any Unrestricted Global Note may be transferred to Persons who take delivery thereof in the form of a beneficial interest in an Unrestricted Global Note. No
written orders or instructions shall be required to be delivered to the Registrar to effect the transfers described in this Section 6.01(b)(i) of this Twelfth Supplemental Indenture. 
  
 (ii) All Other Transfers and Exchanges of Beneficial Interests in Global Notes. In connection with all transfers and
exchanges of beneficial interests that are not subject to Section 6.01(b)(i) of this Twelfth Supplemental Indenture, the transferor of such beneficial interest must deliver to the Registrar either (A) (1) an order from a Participant or an Indirect
Participant given to the Depository in accordance with the Applicable Procedures directing the Depository to credit or cause to be credited a beneficial interest in another Global Note in an amount equal to the beneficial interest to be transferred
or exchanged and (2) instructions given in accordance with the Applicable Procedures containing information regarding the Participant account to be credited with such increase or (B) (1) an order from a Participant or an Indirect Participant given
to the Depository in accordance with the Applicable Procedures directing the Depository to cause to be issued a Certificated Note in an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions given by the
Depository to the Registrar containing information regarding the Person in whose name such Certificated Note shall be registered to effect the transfer or exchange referred to in (B)(1) above. Upon consummation of an Exchange Offer by the Company in
accordance with Section 6.01(f) of this Twelfth Supplemental Indenture, the requirements of this Section 6.01(b)(ii) of this Twelfth Supplemental Indenture shall be deemed to have been satisfied upon receipt by the Registrar of the instructions
contained in the Letter of Transmittal delivered by the Holder of such beneficial interests in the Restricted Global Notes. Upon satisfaction 

  

 24 

 
of all of the requirements for transfer or exchange of beneficial interests in Global Notes contained in the Indenture and the 7 1/8% Notes, the Trustee shall adjust the principal amount of the relevant Global Note(s) pursuant to Section 6.01(h)
of this Twelfth Supplemental Indenture. 
  
 (iii)
Transfer of Beneficial Interests to Another Restricted Global Note. A beneficial interest in any Restricted Global Note may be transferred to a Person who takes delivery thereof in the form of a beneficial interest in another Restricted
Global Note if the transfer complies with the requirements of Section 6.01(b)(ii) of this Twelfth Supplemental Indenture and the Registrar receives a certificate in the form of Exhibit B to this Twelfth Supplemental Indenture, including the
certifications in item (1) or item (1A) thereof, as applicable. 
  
 (iv) Transfer and Exchange of Beneficial Interests in a Restricted Global Note for Beneficial Interests in an Unrestricted Global Note. A beneficial interest in any Restricted Global Note may be exchanged by any holder thereof for a
beneficial interest in an Unrestricted Global Note or transferred to a Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note if the exchange or transfer complies with the requirements of Section
6.01(b)(ii) of this Twelfth Supplemental Indenture and: 
  
 a) such exchange or transfer is effected pursuant to the Exchange Offer in accordance with the Registration Rights Agreement and Section 6.01(f) of this Twelfth Supplemental Indenture, and the holder of the beneficial
interest to be transferred, in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a Person participating in the distribution of the
Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144) of the Company or the Subsidiary Guarantors; 
  
 b) such transfer is effected pursuant to the Shelf Registration Statement in accordance with the Registration Rights Agreement;

  
 c) such transfer is effected by a
Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; 
  
 d) such transfer occurs on or after November 6, 2005 and the Registrar receives the following: (1) if the holder of such beneficial
interest in a Restricted Global Note proposes to exchange such beneficial interest for a beneficial interest in an Unrestricted Global Note, a certificate from such holder in the form of Exhibit C to this Twelfth Supplemental Indenture, including
the certifications in item (1)(a) thereof; or (2) if the holder of such 

  

 25 

 
beneficial interest in a Restricted Global Note proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the form of a
beneficial interest in an Unrestricted Global Note, a certificate from such holder in the form of Exhibit B to this Twelfth Supplemental Indenture, including the certifications in item (3) thereof; and, in each such case set forth in this
subparagraph (D), an Opinion of Counsel in form reasonably acceptable to the Registrar and the Company to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and
in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act; or 
  
 e) if the holder of a beneficial interest in a Restricted Global Note proposes to transfer such beneficial interest to a Person who shall
take delivery thereof in the form of a beneficial interest in a Regulation S Unrestricted Global Note, such transfer occurs after the completion of the Regulation S Restricted Period and the Registrar receives a certificate from such holder in the
form of Exhibit B to this Twelfth Supplemental Indenture, including the certifications in item (3)(a1) thereof. 
  
 If any such transfer is effected pursuant to subparagraph (A), (B) or (D) above at a time when an Unrestricted Global Note has not yet been issued, the
Company shall issue and, upon receipt of a Company Order in accordance with Section 2.3 of the Indenture, the Trustee shall authenticate one or more Unrestricted Global Notes in an aggregate principal amount equal to the aggregate principal amount
of beneficial interests transferred pursuant to subparagraph (A), (B) or (D) above. 
  
 (v) Transfer of Beneficial Interests in a Regulation S Unrestricted Global Note for Beneficial Interests in a Restricted Global Note. Until November 6, 2005, a beneficial interest in any Regulation S
Unrestricted Global Note may be transferred to a Person who takes delivery thereof in the form of a beneficial interest in a Restricted Global Note if the transfer complies with the requirements of Section 6.01(b)(ii) of this Twelfth Supplemental
Indenture and the Registrar receives a certificate in the form of Exhibit B to this Twelfth Supplemental Indenture, including the certifications in item (1) or item (1)(A) thereof, as applicable. Except for transfers described in the immediately
preceding sentence, beneficial interests in an Unrestricted Global Note cannot be exchanged for, or transferred to, Persons who take delivery thereof in the form of a beneficial interest in a Restricted Global Note. 
  

 26 

 (c) Transfer or Exchange of Beneficial Interests for Certificated Notes. 
  
 (i) Beneficial Interests in Restricted Global Notes to Restricted
Certificated Notes. If any holder of a beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a Restricted Certificated Note or to transfer such beneficial interest to a Person who takes delivery
thereof in the form of a Restricted Certificated Note, then, if the exchange or transfer complies with the requirements of Section 6.01(a) of this Twelfth Supplemental Indenture, upon receipt by the Registrar of the following documentation:

  
 a) if the holder of such beneficial interest
in a Restricted Global Note proposes to exchange such beneficial interest for a Restricted Certificated Note, a certificate from such holder in the form of Exhibit C to this Twelfth Supplemental Indenture, including the certifications in item (2)(a)
thereof; 
  
 b) if such beneficial interest is
being transferred to a QIB in accordance with Rule 144A under the Securities Act, a certificate to the effect set forth in Exhibit B to this Twelfth Supplemental Indenture, including the certifications in item (1) thereof; 
  
 c) if such beneficial interest is being transferred
pursuant to an exemption from the registration requirements of the Securities Act in accordance with Rule 144 under the Securities Act, a certificate to the effect set forth in Exhibit B to this Twelfth Supplemental Indenture, including the
certifications in item (2)(a) thereof; 
  
 d) if
such beneficial interest is being transferred to an Institutional Accredited Investor in reliance on an exemption from the registration requirements of the Securities Act other than those listed in subparagraphs (B) and (C) above, a certificate to
the effect set forth in Exhibit B to this Twelfth Supplemental Indenture, including the certifications, certificates and Opinion of Counsel required by item (2)(d) thereof, if applicable; 
  
 e) if such beneficial interest is being transferred to the
Company or any of its Subsidiaries, a certificate to the effect set forth in Exhibit B to this Twelfth Supplemental Indenture, including the certifications in item (2)(b) thereof; 
  
 f) if such beneficial interest is being transferred pursuant to an effective registration statement under
the Securities Act, a certificate to the effect set forth in Exhibit B to this Twelfth Supplemental Indenture, including the certifications in item (2)(c) thereof; or 
  

 27 

 g) if such beneficial interest is being transferred pursuant to Regulation S under the
Securities Act, a certificate to the effect set forth in Exhibit B to this Twelfth Supplemental Indenture, including the certifications in item (1A) thereof, 
  
 the Trustee shall cause the aggregate principal amount of the applicable Restricted Global Note to be reduced accordingly pursuant to Section 6.01(h) of this Twelfth
Supplemental Indenture, and the Company shall execute and, upon receipt of a Company Order pursuant to Section 2.3 of the Indenture, the Trustee shall authenticate and deliver to the Person designated in the instructions a Restricted Certificated
Note in the appropriate principal amount. Any Restricted Certificated Note issued in exchange for a beneficial interest in a Restricted Global Note pursuant to this Section 6.01(c) shall be registered in such name or names and in such authorized
denomination or denominations as the holder of such beneficial interest shall instruct the Registrar through instructions from the Depository and the Participant or Indirect Participant. The Trustee shall deliver such Restricted Certificated Notes
to the Persons in whose names such Series J Notes are so registered. Any Restricted Certificated Note issued in exchange for a beneficial interest in a Restricted Global Note pursuant to this Section 6.01(c)(i) shall bear the Private Placement
Legend and shall be subject to all restrictions on transfer contained therein. 
  
 (ii) Beneficial Interests in Restricted Global Notes to Unrestricted Certificated Notes. A holder of a beneficial interest in a Restricted Global Note may exchange such beneficial interest for an Unrestricted
Certificated Note or may transfer such beneficial interest to a Person who takes delivery thereof in the form of an Unrestricted Certificated Note only if the exchange or transfer complies with the requirements of Section 6.01(a) of this Twelfth
Supplemental Indenture and: 
  
 a) such exchange
or transfer is effected pursuant to the Exchange Offer in accordance with the Registration Rights Agreement and Section 6.01(f) of this Twelfth Supplemental Indenture, and the holder of such beneficial interest, in the case of an exchange, or the
transferee, in the case of a transfer, certifies in the applicable Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a Person participating in the distribution of the Exchange Notes or (3) a Person who is an affiliate (as defined in Rule
144) of the Company or the Subsidiary Guarantors; 
  
 b) such transfer is effected pursuant to the Shelf Registration Statement in accordance with the Registration Rights Agreement; 
  
 c) such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration
Rights Agreement; 
  

 28 

 d) such transfer occurs on or after November 6, 2005 and the Registrar receives the
following: (1) if the holder of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a Certificated Note that does not bear the Private Placement Legend, a certificate from such holder in the form of
Exhibit C to this Twelfth Supplemental Indenture, including the certifications in item (1)(b) thereof; or (2) if the holder of such beneficial interest in a Restricted Global Note proposes to transfer such beneficial interest to a Person who shall
take delivery thereof in the form of a Certificated Note that does not bear the Private Placement Legend, a certificate from such holder in the form of Exhibit B to this Twelfth Supplemental Indenture, including the certifications in item (3)
thereof; and, in each such case set forth in this subparagraph (D), an Opinion of Counsel in form reasonably acceptable to the Registrar and the Company to the effect that such exchange or transfer is in compliance with the Securities Act and that
the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act; or 
  
 e) if the holder of a beneficial interest in a Restricted Global Note proposes to transfer such beneficial
interest to a Person who shall take delivery thereof in the form of a beneficial interest in an Unrestricted Certificated Note pursuant to Regulation S, such transfer occurs after the completion of the Regulation S Restricted Period and the
Registrar receives a certificate from such holder in the form of Exhibit B to this Twelfth Supplemental Indenture, including the certifications in item (3)(a1) thereof. 
  
 (iii) Beneficial Interests in Unrestricted Global Notes to Unrestricted Certificated Notes. If any holder of a
beneficial interest in an Unrestricted Global Note proposes to exchange such beneficial interest for an Unrestricted Certificated Note or to transfer such beneficial interest to a Person who takes delivery thereof in the form of an Unrestricted
Certificated Note, then, if the exchange or transfer complies with the requirements of Section 6.01(a) of this Twelfth Supplemental Indenture and upon satisfaction of the conditions set forth in Section 6.01(b)(ii) of this Twelfth Supplemental
Indenture, the Trustee shall cause the aggregate principal amount of the applicable Unrestricted Global Note to be reduced accordingly pursuant to Section 6.01(h) of this Twelfth Supplemental Indenture, and the Company shall execute and, upon
receipt of a Company Order pursuant to Section 2.3 of the Indenture, the Trustee shall authenticate and deliver to the Person designated in the instructions an Unrestricted Certificated Note in the appropriate principal amount. Any Unrestricted
Certificated Note issued in exchange for a beneficial interest pursuant to this Section 6.01(c)(iii) of this Twelfth Supplemental Indenture shall be registered in such name or names and in such authorized denomination or 

  

 29 

 
denominations as the holder of such beneficial interest shall instruct the Registrar through instructions from the Depository and the Participant or Indirect
Participant. The Trustee shall deliver such Unrestricted Certificated Notes to the Persons in whose names such 7 1/8% Notes are so registered. Any Unrestricted Certificated Note issued in exchange for a beneficial interest pursuant to this Section 6.01(c)(iii) of this Twelfth Supplemental Indenture shall not bear the Private Placement Legend.

  
 (d) Transfer and Exchange of Certificated Notes for
Beneficial Interests. 
  
 (i) Restricted Certificated
Notes or Unrestricted Certificated Notes to Beneficial Interests in Restricted Global Notes. If any Holder of a Restricted Certificated Note or Unrestricted Certificated Note proposes to exchange such Series J Note for a beneficial interest in a
Restricted Global Note other than a Regulation S Restricted Global Note or to transfer such Restricted Certificated Notes or Unrestricted Certificated Notes to a Person who takes delivery thereof in the form of a beneficial interest in a Restricted
Global Note, then, upon receipt by the Registrar of the following documentation: 
  
 a) if the Holder of such Restricted Certificated Note or Unrestricted Certificated Note proposes to exchange such Series J Note for a
beneficial interest in a Restricted Global Note that is not a Regulation S Restricted Global Note, a certificate from such Holder in the form of Exhibit C to this Twelfth Supplemental Indenture, including the certifications in item (2)(b) thereof;

  
 b) if such Restricted Certificated Note or
Unrestricted Certificated Note is being transferred to a QIB in accordance with Rule 144A under the Securities Act, a certificate to the effect set forth in Exhibit B to this Twelfth Supplemental Indenture, including the certifications in item (1)
thereof; or 
  
 c) if such Restricted
Certificated Note or Unrestricted Certificated Note is being transferred to a person outside the United States in accordance with Regulation S under the Securities Act, a certificate to the effect set forth in Exhibit B to this Twelfth Supplemental
Indenture, including the certifications in item (1A) thereof, 
  
 the Trustee
shall cancel the Restricted Certificated Note or Unrestricted Certificated Note, and increase or cause to be increased the aggregate principal amount of the appropriate Restricted Global Note. 
  

 30 

 (ii) Restricted Certificated Notes to Beneficial Interests in Unrestricted Global Notes. A Holder
of a Restricted Certificated Note may exchange such 7 1/8% Note for a beneficial interest in an Unrestricted
Global Note or transfer such Restricted Certificated Note to a Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note only if: 
  
 a) such exchange or transfer is effected pursuant to the Exchange Offer in accordance with the Registration
Rights Agreement and Section 6.01(f) of this Twelfth Supplemental Indenture, and the Holder, in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable Letter of Transmittal that it is not (1) a
Broker-Dealer, (2) a Person participating in the distribution of the Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144) of the Company or the Subsidiary Guarantors; 
  
 b) such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration Rights Agreement; 
  
 c) such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; 
  
 d) such transfer occurs on or after November 6, 2003 and
the Registrar receives the following: (1) if the Holder of such Restricted Certificated Notes proposes to exchange such 7 1/8% Notes for a beneficial interest in the Unrestricted Global Note, a certificate from such Holder in the form of Exhibit C to this Twelfth Supplemental Indenture, including the certifications in item (1)(c) thereof; or (2) if the
Holder of such Restricted Certificated Notes proposes to transfer such Series J Notes to a Person who shall take delivery thereof in the form of a beneficial interest in the Unrestricted Global Note, a certificate from such Holder in the form of
Exhibit B to this Twelfth Supplemental Indenture, including the certifications in item (3) thereof; and, in each such case set forth in this subparagraph (D), an Opinion of Counsel in form reasonably acceptable to the Registrar and the Company to
the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities
Act; or 
  
 e) if the holder of a
beneficial interest in a Restricted Certificated Note proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the form of a beneficial interest in a Regulation S Unrestricted Global Note, such transfer occurs
after the completion of the 

  

 31 

 
Regulation S Restricted Period and the Registrar receives a certificate from such holder in the form of Exhibit B to this Twelfth Supplemental Indenture,
including the certifications in item (3)(a1) thereof. 
  
 Upon satisfaction of the
conditions of any of the subparagraphs in this Section 6.01(d)(ii) of this Twelfth Supplemental Indenture, the Trustee shall cancel the Restricted Certificated Notes so transferred or exchanged and increase or cause to be increased the aggregate
principal amount of the appropriate Unrestricted Global Note. 
  
 (iii) Unrestricted Certificated Notes to Beneficial Interests in Unrestricted Global Notes. A Holder of an Unrestricted Certificated Note may exchange such 7 1/8% Note for a beneficial interest in an Unrestricted Global Note or transfer such Certificated Notes to a Person who takes delivery thereof in the form of a beneficial interest in
an Unrestricted Global Note at any time. Upon receipt of a request for such an exchange or registration of transfer, the Trustee shall cancel the applicable Unrestricted Certificated Note and increase or cause to be increased the aggregate principal
amount of one of the Unrestricted Global Notes. If any such exchange or registration of transfer from a Certificated Note to a beneficial interest is effected pursuant to subparagraphs (ii)(B), (ii)(D) or (iii) of this Section 6.01(d) at a time when
an Unrestricted Global Note has not yet been issued, the Company shall issue and, upon receipt of a Company Order in accordance with Section 2.3 of the Indenture, the Trustee shall authenticate one or more Unrestricted Global Notes in an aggregate
principal amount equal to the principal amount of Certificated Notes so transferred. 
  
 (e) Transfer and Exchange of Certificated Notes for Certificated Notes. Upon request by a Holder of Certificated Notes and such Holder’s compliance with the provisions of this Section 6.01(e) of this
Twelfth Supplemental Indenture, the Registrar shall register the transfer or exchange of Certificated Notes. Prior to such registration of transfer or exchange, the requesting Holder shall present or surrender to the Registrar the Certificated Notes
duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Registrar duly executed by such Holder or by its attorney, duly authorized in writing. In addition, the requesting Holder shall provide any additional
certifications, documents and information, as applicable, required pursuant to the following provisions of this Section 6.01(e) of this Twelfth Supplemental Indenture. 
  
 (i) Restricted Certificated Notes to Restricted Certificated Notes. Any Restricted Certificated Note may be
transferred to and registered in the name of Persons who take delivery thereof in the form of a Restricted Certificated Note if the Registrar receives the following: 
  

 32 

 a) if the transfer will be made pursuant to Rule 144A under the Securities Act, then the
transferor must deliver a certificate in the form of Exhibit B to this Twelfth Supplemental Indenture, including the certifications in item (1) thereof; 
  
 b) if the transfer will be made pursuant to Regulation S under the Securities Act, then the transferor must deliver a certificate in the
form of Exhibit B to this Twelfth Supplemental Indenture, including the certifications in item (1A) thereof; and 
  
 c) if the transfer will be made pursuant to any other exemption from the registration requirements of the Securities Act, then the
transferor must deliver a certificate in the form of Exhibit B to this Twelfth Supplemental Indenture, including the certifications, certificates and Opinion of Counsel required by item (2) thereof, if applicable. 
  
 (ii) Restricted Certificated Notes to Unrestricted Certificated
Notes. Any Restricted Certificated Note may be exchanged by the Holder thereof for an Unrestricted Certificated Note or transferred to a Person or Persons who take delivery thereof in the form of an Unrestricted Certificated Note if: 

 
 a) such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement and Section 6.01(f) of this Twelfth Supplemental Indenture, and the Holder, in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable
Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a Person participating in the distribution of the Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144) of the Company; 
  
 b) any such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration Rights Agreement; 
  
 c) any such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; 
  
 d) such transfer occurs on or after November 6, 2005 and
the Registrar receives the following: (1) if the Holder of such Restricted Certificated Notes proposes to exchange such 7 1/8% Notes for an Unrestricted Certificated Note, a certificate from such Holder in the form of Exhibit C to this Twelfth Supplemental Indenture, including the certifications in item (1)(d) thereof; or (2) if the Holder of such
Restricted Certificated Notes proposes to transfer such 7 1/8% Notes to a Person who shall take delivery thereof
in the 

  

 33 

 
form of an Unrestricted Certificated Note, a certificate from such Holder in the form of Exhibit B to this Twelfth Supplemental Indenture, including the
certifications in item (3) thereof; and, in each such case set forth in this subparagraph (D), an Opinion of Counsel in form reasonably acceptable to the Registrar and the Company to the effect that such exchange or transfer is in compliance with
the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act; 
  
 e) if the holder of a beneficial interest in a Restricted
Certificated Note proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the form of a beneficial interest in an Unrestricted Certificated Note pursuant to Regulation S, such transfer occurs after the completion
of the Regulation S Restricted Period and the Registrar receives a certificate from such holder in the form of Exhibit B to this Twelfth Supplemental Indenture, including the certifications in item (3)(a1) thereof. 
  
 (iii) Unrestricted Certificated Notes to Unrestricted Certificated
Notes. A Holder of Unrestricted Certificated Notes may transfer such 7 1/8% Notes to a Person who takes
delivery thereof in the form of an Unrestricted Certificated Note. Upon receipt of a request to register such a transfer, the Registrar shall register the Unrestricted Certificated Notes pursuant to the instructions from the Holder thereof.

  
 (f) Exchange Offer. Upon the occurrence of the
Exchange Offer in accordance with the Registration Rights Agreement, the Company shall issue and, upon receipt of a Company Order in accordance with Section 2.3 of the Indenture and an Opinion of Counsel for the Company as to certain matters
discussed in this Section 6.01(f), the Trustee shall authenticate (i) one or more Unrestricted Global Notes in an aggregate principal amount equal to the sum of (A) the principal amount of the beneficial interests in the Restricted Global Notes and
Regulation S Global Notes tendered for acceptance by Persons who certify in the applicable Letters of Transmittal that (x) they are not Broker-Dealers, (y) they are not participating in a distribution of the Exchange Notes and (z) they are not
affiliates (as defined in Rule 144) of the Company, and accepted for exchange in the Exchange Offer and (B) the principal amount of Certificated Notes exchanged or transferred for beneficial interests in Unrestricted Global Notes in connection with
the Exchange Offer pursuant to Section 6.01(d)(ii) and (ii) Certificated Notes in an aggregate principal amount equal to the principal amount of the Restricted Certificated Notes accepted for exchange in the Exchange Offer (other than Certificated
Notes described in clause (i)(B) immediately above). Concurrently with the issuance of such Series I Notes, the Trustee shall cause the aggregate principal amount of the applicable Restricted Global Notes and Regulation S Global Notes to be reduced
accordingly, and the Company shall execute and, upon receipt of a Company Order pursuant to Section 2.3 of the Indenture, the Trustee shall authenticate and deliver to the Persons designated by the Holders of Certificated Notes so accepted
Certificated Notes in the appropriate principal amount. 
  

 34 

 The Opinion of Counsel for the Company referenced above shall state that: 
  
 (1) the Exchange Notes have been duly authorized and, when executed and
authenticated in accordance with the provisions of the Indenture delivered in exchange for Series J Notes in accordance with the Indenture and the Exchange Offer, will be entitled to the benefits of the Indenture and will be valid and binding
obligations of the Company, enforceable in accordance with their terms except as (x) the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights generally, (y) rights of acceleration and the
availability of equitable remedies may be limited by equitable principles of general applicability and (z) other customary limitations and exceptions for opinions of such type; and (2) when the Exchange Notes are executed and authenticated in
accordance with the provisions of the Indenture and delivered in exchange for Series J Notes in accordance with the Indenture and the Exchange Offer, the Guarantee of the Exchange Notes by the Subsidiary Guarantors will be entitled to the benefits
of the Indenture and will be valid and binding obligations of the Subsidiary Guarantors, enforceable in accordance with their terms except as (x) the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting
creditors’ rights generally, (y) rights of acceleration and the availability of equitable remedies may be limited by equitable principles of general applicability and (z) other customary limitations and exceptions for opinions of this type.

  
 (g) Legends. The following legends shall appear on the
face of all Global Notes and Certificated Notes issued under the Indenture unless specifically stated otherwise in the applicable provisions of the Indenture. 
  

(i) Private Placement Legend. 
  
 a) Except as permitted by subparagraph (B) below, each Global Note and each Certificated Note (and all Notes issued in exchange therefor
or substitution thereof) shall bear the legend in substantially the following form: 
  
 THIS NOTE (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, EXCEPT AS SET FORTH
BELOW. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE HOLDER: (1) AGREES THAT IT WILL NOT RESELL OR OTHERWISE 

  

 35 

 
TRANSFER THIS NOTE EXCEPT (A) TO THE OPERATING PARTNERSHIP OR ANY SUBSIDIARY GUARANTOR WHOLLY OWNED BY THE OEPRATING PARTNERSHIP OR ANY OF THEIR RESPECTIVE
WHOLLY OWNED SUBSIDIARIES, (B) TO A PERSON WHO IS A QIB PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (C) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES
ACT, (D) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT) THAT, PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS RELATING TO THE TRANSFER OF THIS NOTE (THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF NOTES LESS THAN $250,000, AN OPINION OF COUNSEL
ACCEPTABLE TO THE OPERATING PARTNERSHIP THAT SUCH TRANSFER IS EXEMPT UNDER THE SECURITIES ACT, (E) OUTSIDE THE UNITED STATES IN A TRANSACTION COMPLYING WITH THE PROVISIONS OF RULE 904 OF THE SECURITIES ACT, (F) IN ACCORDANCE WITH ANOTHER EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE OPERATING PARTNERSHIP), OR (G) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH THE APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION; AND (2) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE AS TO THE ABOVE RESTRICTIONS. 
  
 b) Notwithstanding the foregoing, any Global Note or
Certificated Note issued pursuant to subparagraphs (b)(iv), (c)(ii), (c)(iii), (d)(ii), (d)(iii), (e)(ii), (e)(iii) or (f) to this Section 6.01 (and all 7 1/8% Notes issued in exchange therefor or substitution thereof) shall not bear the Private Placement Legend. 
  

(ii) Global Note Legend. To the extent required by the Depository, each Global Note shall bear a legend in substantially the following form:

  
 “THIS GLOBAL NOTE IS HELD BY THE DEPOSITORY (AS DEFINED
IN THE INDENTURE GOVERNING THIS GLOBAL NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE 

  

 36 

 
MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 6.01 OF THE TWELFTH SUPPLEMENTAL INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN
WHOLE BUT NOT IN PART PURSUANT TO SECTION 6.01(a) OF THE TWELFTH SUPPLEMENTAL INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.12 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED
TO A SUCCESSOR DEPOSITORY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.” 
  
 (iii) Regulation S Restricted Global Note Legend. To the extent required by the Depositary, each Regulation S Restricted Global Note shall bear the a legend in substantially the following form: 
  
 “THE RIGHTS ATTACHING TO THIS REGULATION S RESTRICTED GLOBAL NOTE, AND
THE CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR DEFINITIVE NOTES, ARE AS SPECIFIED IN TWELFTH SUPPLEMENTAL INDENTURE. NEITHER THE HOLDER NOR THE BENEFICIAL OWNERS OF THIS REGULATION S RESTRICTED GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE CASH
PAYMENTS OF INTEREST DURING THE PERIOD WHICH SUCH HOLDER HOLDS THIS NOTE. NOTHING IN THIS LEGEND SHALL BE DEEMED TO PREVENT INTEREST FROM ACCRUING ON THIS NOTE.” 
  
 (h) Cancellation and/or Adjustment of Global Notes. At such time as all beneficial interests in a particular Global
Note have been exchanged for Certificated Notes or a particular Global Note has been redeemed, repurchased or cancelled in whole and not in part, each such Global Note shall be returned to or retained and cancelled by the Trustee in accordance with
Section 2.12 of the Indenture. At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note
or for Certificated Notes, the principal amount of 7 1/8% Notes represented by such Global Note shall be reduced
accordingly and an endorsement shall be made on such Global Note by the Trustee or by the Depository at the direction of the Trustee to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who will
take delivery thereof in the form of a beneficial interest in another Global Note, such other Global Note shall be increased accordingly and an endorsement shall be made on such Global Note by the Trustee or by the Depository at the direction of the
Trustee to reflect such increase. 
  

 37 

 (i) General Provisions Relating to Transfers and Exchanges. 
  
 (i) To permit registrations of transfers and exchanges, the Company shall
execute and the Trustee shall authenticate Global Notes and Certificated Notes upon receipt of a Company Order. 
  
 (ii) No service charge shall be made to a holder of a beneficial interest in a Global Note or to a Holder of a Certificated Note for any registration of
transfer or exchange, but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer taxes or similar governmental charge payable upon
exchange or transfer pursuant to Sections 2.11, 3.6, 4.12 and 10.1 of the Indenture). 
  
 (iii) The Registrar shall not be required to register the transfer of or exchange any 7 1/8% Note selected for redemption in whole or in part, except the unredeemed portion of any 7 1/8%
Note being redeemed in part. 
  
 (iv) All Global
Notes and Certificated Notes issued upon any registration of transfer or exchange of Global Notes or Certificated Notes shall be the valid obligations of the Company, evidencing the same Indebtedness, and entitled to the same benefits under the
Indenture, as the Global Notes or Certificated Notes surrendered upon such registration of transfer or exchange. 
  
 (v) Prior to due presentment for the registration of a transfer of any 7 1/8% Note, the Trustee, any Agent and the Company may deem and treat the Person in whose name any 7 1/8% Note is registered as the absolute owner of such 7 1/8% Note for the purpose of receiving payment of principal of and interest on such 7 1/8% Notes and
for all other purposes, and none of the Trustee, any Agent or the Company shall be affected by notice to the contrary. 
  
 (vi) The Trustee shall authenticate Global Notes and Certificated Notes in accordance with the provisions of Section 2.3 of the Indenture. 
  
 (vii) All certifications, certificates and Opinions of Counsel required to
be submitted to the Registrar pursuant to this Section 6.01 to effect a registration of transfer or exchange may be submitted by facsimile. 
  
 Notwithstanding anything herein to the contrary, as to any certifications and certificates delivered to the Registrar pursuant to this Section 6.01 of
this Twelfth Supplemental Indenture, the Registrar’s duties shall be limited to confirming that any such certifications and certificates delivered to it are substantially in the form of Exhibits A, B, C and D attached to this Twelfth
Supplemental Indenture. The Registrar shall not be responsible for confirming the truth or accuracy of representations made in any such certifications or certificates. 
  

 38 

 ARTICLE 7 
  
 Section 7.01 Except as specifically modified herein, the Indenture is in all respects ratified and confirmed and shall remain in full force and effect in
accordance with its terms. 
  
 Section 7.02 Except as otherwise
expressly provided herein, no duties, responsibilities or liabilities are assumed or shall be construed to be assumed by the Trustee by reason of this Twelfth Supplemental Indenture. This Twelfth Supplemental Indenture is executed and accepted by
the Trustee subject to all the terms and conditions set forth in the Indenture with the same force and effect as if those terms and conditions were repeated at length herein and made applicable to the Trustee with respect to this Twelfth
Supplemental Indenture. 
  
 Section 7.03 The Trustee shall not be
responsible in any manner whatsoever for or in respect of the recitals contained herein, all of which recitals are made solely by the Company and the Subsidiary Guarantors. 
  
 Section 7.04 THIS TWELFTH SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND NEW YORK CIVIL PRACTICE LAWS AND RULES 327(b). EACH OF THE COMPANY AND THE SUBSIDIARY GUARANTORS HEREBY IRREVOCABLY SUBMITS TO THE
JURISDICTION OF ANY NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK OR ANY FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THE INDENTURE AND THE SECURITIES, AND IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, JURISDICTION OF THE AFORESAID COURTS. EACH OF THE COMPANY AND THE SUBSIDIARY GUARANTORS IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, ANY OBJECTION WHICH THEY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH
SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE TRUSTEE OR ANY SECURITYHOLDER TO SERVE PROCESS IN ANY OTHER MANNER 

  

 39 

 
PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE COMPANY AND THE SUBSIDIARY GUARANTORS IN ANY OTHER JURISDICTION.

  
 Section 7.05 The parties may sign any number of copies of this
Twelfth Supplemental Indenture. Each signed copy shall be an original, but all of such executed copies together shall represent the same agreement. 
  
 Section 7.06 All capitalized terms used in this Twelfth Supplemental Indenture which are not otherwise defined herein, shall have the respective meanings
specified in the Indenture, unless the context otherwise requires. 
  
 Section 7.07 The 7 1/8% Notes may be issued in whole or in part in the form of one or more Global
Securities, registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”). 
  

 40 

 IN WITNESS WHEREOF, the parties to this Twelfth Supplemental Indenture have caused this Twelfth
Supplemental Indenture to be duly executed, all as of the date first written above. 
  

	COMPANY
	
	 HOST MARRIOTT, L.P., a Delaware limited partnership

	
	BY: HOST MARRIOTT CORPORATION, its general partner
	
	 
		
	 By:
	 	 /s/    W. Edward Walter

	 	 	 Name: W. Edward Walter

	 	 	 Title: Executive Vice President and Chief Financial Officer

	
	SUBSIDIARY GUARANTORS

  

	 AIRPORT HOTELS LLC,

	 HOST OF BOSTON, LTD.,

	 HOST OF HOUSTON, LTD,

	 HOST OF HOUSTON 1979,

	 CHESAPEAKE FINANCIAL SERVICES LLC,

	 CITY CENTER INTERSTATE PARTNERSHIP LLC,

	 HMC RETIREMENT PROPERTIES, L.P.,

	             BY: DURBIN LLC

	 HMH MARINA LLC,

	 FARRELL’S ICE CREAM PARLOUR RESTAURANTS LLC,

	 HMC ATLANTA LLC,

	 HMC BCR HOLDINGS LLC,

	 HMC BURLINGAME LLC,

	 HMC CALIFORNIA LEASING LLC,

	 HMC CAPITAL LLC,

	 HMC CAPITAL RESOURCES LLC,

	 HMC PARK RIDGE LLC,

	 HMC PARTNERSHIP HOLDINGS LLC,

	 HOST PARK RIDGE LLC,

	 HMC SUITES LLC,

	 HMC SUITES LIMITED PARTNERSHIP,

	             BY: HMC SUITES LLC

	 PRM LLC,

	 WELLSFORD-PARK RIDGE HMC HOTEL LIMITED

	 PARTNERSHIP,

	             BY: HOST PARK RIDGE LLC

	 YBG ASSOCIATES LLC,

	 HMC CHICAGO LLC,

	 HMC DESERT LLC,

	 HMC PALM DESERT LLC,

	 MDSM FINANCE LLC,

	 HMC DIVERSIFIED LLC,

	 HMC EAST SIDE II LLC,

	 HMC GATEWAY LLC,

	 HMC GRAND LLC,

	 HMC HANOVER LLC,

	 HMC HARTFORD LLC,

	 HMC HOTEL DEVELOPMENT LLC,

	 HMC HPP LLC,

	 HMC IHP HOLDING LLC,

	 HMC MANHATTAN BEACH LLC,

	 HMC MARKET STREET LLC,

	 NEW MARKET STREET LP,

	             BY: HMC MARKET STREET LLC

	 HMC GEORGIA LLC,

	 HMC MEXPARK LLC,

	 HMC POLANCO LLC,

	 HMC NGL LLC,

	 HMC OLS I L.P.,

	             BY: HMC OLS I LLC

	 HMC OP BN LLC,

	 HMC PACIFIC GATEWAY LLC,

	 HMC PLP LLC,

	 CHESAPEAKE HOTEL LIMITED PARTNERSHIP,

	             BY: HMC PLP LLC

	 HMC POTOMAC LLC,

	 HMC PROPERTIES I LLC,

	 HMC PROPERTIES II LLC,

	 HMC SBM TWO LLC,

	 HMC SEATTLE LLC,

	 HMC SFO LLC,

	 HMC SWISS HOLDINGS LLC,

	 HMC WATERFORD LLC,

	 HMH GENERAL PARTNER HOLDINGS LLC,

	 HMH NORFOLK LLC,

	 HMH NORFOLK, L.P.,

	             BY: HMH NORFOLK LLC

	 HMH PENTAGON LLC,

	 HMH RESTAURANTS LLC,

	 HMH RIVERS LLC,

	 HMH RIVERS, L.P.,

	             BY: HMH RIVERS LLC

	 HMH WTC LLC,

	 HMP CAPITAL VENTURES LLC,

	 HMP FINANCIAL SERVICES LLC,

	 HOST LA JOLLA LLC,

	 CITY CENTER HOTEL LIMITED PARTNERSHIP,

	             BY: HOST LA JOLLA LLC

	 TIMES SQUARE LLC,

	 IVY STREET LLC,

	 MARKET STREET HOST LLC,

	 MFR OF ILLINOIS LLC,

	 MFR OF VERMONT LLC,

	 MFR OF WISCONSIN LLC,

	 PHILADELPHIA AIRPORT HOTEL LLC,

	 PM FINANCIAL LLC,

	 PM FINANCIAL LP,

	             BY: PM FINANCIAL LLC

	 HMC PROPERTY LEASING LLC,

	 HMC HOST RESTAURANTS LLC,

	 SANTA CLARA HMC LLC,

	 S.D. HOTELS LLC,

	 TIMES SQUARE GP LLC,

	 DURBIN LLC,

	 HMC HT LLC,

	 HMC JWDC GP LLC,

	 HMC JWDC LLC,

	 HMC OLS I LLC,

	 HMC OLS II L.P.,

	             BY: HMC OLS I LLC,

	 HMT LESSEE PARENT LLC,

	 HMC/INTERSTATE ONTARIO, L.P.,

	             BY: HMC PARTNERSHIP HOLDINGS, LLC,

	 HMC/INTERSTATE MANHATTAN BEACH, L.P.

	             BY: HMC MANHATTAN BEACH LLC,

	 HOST/INTERSTATE PARTNERSHIP, L.P.,

	             BY: CITY CENTER INTERSTATE PARTNERSHIP
LLC,

	 HMC/INTERSTATE WATERFORD, L.P.,

	             BY: HMC WATERFORD LLC,

	 AMELIATEL

	 HMC AMELIA I, LLC,

	 HMC AMELIA II, LLC,

	 ROCKLEDGE HOTEL LLC,

	 FERNWOOD HOTEL LLC,

	 HMC COPLEY LLC,

	 HMC HEADHOUSE FUNDING LLC,

	 IVY STREET HOPEWELL LLC

	 HMC DIVERSIFIED AMERICAN HOTELS, L.P.

	 POTOMAC HOTEL LIMITED PARTNERSHIP

  

	 By:
	 	 /s/    John A. Carnella

	 	 	 Name: John A. Carnella

	 	 	 Title: Vice President

	TRUSTEE
	
	 THE BANK OF NEW YORK,
 as Trustee

		
	 By:
	 	 /s/    Geovanni Barris

	 	 	 Name: Geovanni Barris

	 	 	 Title: Vice President

 EXHIBIT A 
  

FORM OF 7 1/8% [SERIES J][/SERIES K]1 SENIOR NOTE 
  
 Unless and until it is exchanged in whole or in part for 7 1/8% Notes in definitive form, this
Security may not be transferred except as a whole by the Depository to a nominee of the Depository or by a nominee of the Depository to the Depository or another nominee of the Depository or by the Depository or any such nominee to a successor
Depository or a nominee of such successor Depository. Unless this certificate is presented by an authorized representative of The Depository Trust Company (55 Water Street, New York, New York) (“DTC”), to the Company or its agent for
registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or such other name as requested by an authorized representative of DTC (and any payment is made to Cede & Co. or such other
entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.2 
  
 HOST MARRIOTT, L.P. 
  
 7 1/8% [SERIES J][/SERIES K] SENIOR NOTE DUE 2013 
  
 CUSIP: 
 ISIN: 
  
 No.
                                        
                                        
                                        
                                        
        $ 
  
 Host
Marriott, L.P., a Delaware limited partnership (hereinafter called the “Company,” which term includes any successors under the Indenture hereinafter referred to), for value received, hereby promises to pay to
                    , or registered assigns, the principal sum of
$                    , on November 1, 2013. The Security is one of the 7 1/8% [Series J][/Series K] Senior Notes due 2013 referred to in such Indenture (hereinafter referred to for purposes of this 7 1/8% Senior Note collectively as the “7 1/8% Securities”).

  

	                                       
                      Interest Payment Dates:
	 	 May 1 and November 1

		
	                                       
                      Record Dates:
	 	 April 15 and October 15

  

	1	Series J should be replaced with Series K in the Exchange Notes. 

	2	To be used only if the Security is issued as a Global Note. 

  

 A - 1 

 Reference is made to the further provisions of this Security on the reverse side, which will, for all purposes, have
the same effect as if set forth at this place. 
  
 IN
WITNESS WHEREOF, the Company has caused this Instrument to be duly executed. 
  
 Dated: 
  
  

	 HOST MARRIOTT, L.P.,
 a
Delaware limited partnership

		
	By:	 	  

	 	 	 Name:

	 	 	 Title:

  

	Attest:	 	  

	 	 	 Name:

	 	 	 Title:

  
  

 A - 2 

 FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
  
 This is one of the 7 1/8% Securities of the Series designated therein referred to in the within mentioned Indenture. 
  
  
  

	 THE BANK OF NEW YORK,
 as Trustee

		
	By:	 	  

	 	 	Authorized Signatory

  
 HOST MARRIOTT,
L.P. 
  
 7 1/8% [Series J][/Series K] Senior Note due 2013 
  
 THIS GLOBAL NOTE IS HELD BY THE DEPOSITORY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF,
AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 6.01 OF THE TWELFTH SUPPLEMENTAL INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN
WHOLE BUT NOT IN PART PURSUANT TO SECTION 6.01(a) OF THE TWELFTH SUPPLEMENTAL INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.12 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED
TO A SUCCESSOR DEPOSITORY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.3 
  
 THIS NOTE (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE HOLDER: (1) AGREES THAT IT
WILL NOT RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO THE 

 3 To be included only on Global Notes deposited with DTC as Depository 

 OPERATING PARTNERSHIP OR ANY SUBSIDIARY GUARANTOR WHOLLY OWNED BY THE OPERATING PARTNERSHIP OR ANY OF THEIR RESPECTIVE
WHOLLY OWNED SUBSIDIARIES, (B) TO A PERSON WHO IS A QIB PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (C) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES
ACT, (D) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT) THAT, PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS RELATING TO THE TRANSFER OF THIS NOTE (THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF NOTES LESS THAN $250,000, AN OPINION OF COUNSEL
ACCEPTABLE TO THE OPERATING PARTNERSHIP THAT SUCH TRANSFER IS EXEMPT UNDER THE SECURITIES ACT, (E) OUTSIDE THE UNITED STATES IN A TRANSACTION COMPLYING WITH THE PROVISIONS OF RULE 904 UNDER THE SECURITIES ACT, (F) IN ACCORDANCE WITH ANOTHER
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE OPERATING PARTNERSHIP), OR (G) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH THE
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION; AND (2) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE AS TO THE ABOVE RESTRICTIONS.4 
  
 1. Interest. 
  
 Host Marriott, L.P., a Delaware limited partnership (hereinafter called the “Company,” which term includes any successors under the Indenture
hereinafter referred to), promises to pay interest on the principal amount of this Security at the rate of 7 1/8%
per annum from November 6, 2003 until maturity. To the extent it is lawful, the Company promises to pay interest on any interest payment due but unpaid on such principal amount at a rate of 7 1/8% per annum compounded semi-annually. 
  
 The Company will pay
interest semi-annually on May 1 and November 1 of each year (each, an “Interest Payment Date”), commencing May 1, 2004. 

 4 To be included only on Transfer
Restricted Notes. 
  

 A - 4 

 Interest on the 7 1/8% Securities will accrue from the most recent date to which interest has been paid or, if no interest has been paid on the Securities, from the date of the original issuance. Interest will be computed
on the basis of a 360-day year consisting of twelve 30-day months. 
  
 2. Method of Payment. 
  
 The Company shall pay interest on the 7 1/8% Securities (except defaulted interest) to the Persons who are the registered Holders at the close of business on the Record Date immediately preceding the Interest Payment Date. Holders must
surrender Securities to a Paying Agent to collect principal payments. Principal of, premium, if any, and interest on the 7 1/8% Securities will be payable in United States Dollars at the office or agency of the Company maintained for such purpose, in the Borough of Manhattan, The City of New York or at the option of the Company, payment of interest may be
made by check mailed to the Holders of the 7 1/8% Securities at the addresses set forth upon the registry books
of the Company; provided,
however, Holders of Global Securities will be entitled
to receive interest payments (other than at maturity) by wire transfer of immediately available funds, if appropriate wire transfer instructions have been received in writing by the Trustee not fewer than 15 days prior to the applicable Interest
Payment Date. Such wire instructions, upon receipt by the Trustee, shall remain in effect until revoked by such Holder. No service charge will be made for any registration of transfer or exchange of Securities, but the Company may require payment of
a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
  
 3.
Paying Agent and Registrar. 
  
 Initially, The Bank
of New York will act as Paying Agent and Registrar. The Company may change any Paying Agent, Registrar or co-Registrar without notice to the Holders. The Company or any of its Subsidiaries may, subject to certain exceptions, act as Paying Agent,
Registrar or co-Registrar. 
  
 4. Indenture. 
  
 The Company issued the 7 1/8% Securities and the Subsidiary Guarantors issued their Guarantees under an Amended and Restated Indenture, dated as of August 5, 1998, as supplemented
(the “Indenture”), between the Company, its Parents, the Subsidiary Guarantors and the Trustee. Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein. The 7 1/8% Securities are unlimited in aggregate principal amount. The terms of the 7 1/8% Securities include those stated in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as in effect on the date of the Indenture. The 7 1/8% Securities are subject to all
such 

  

 A - 5 

 
terms, and Holders of 7 1/8% Securities are referred to the Indenture and said Act for a statement of them. The Securities are senior, general obligations of the Company, secured initially by a pledge of Capital Stock of certain Subsidiaries of the Company,
which pledge is shared equally and ratably with the Credit Facility, the Existing Senior Note and certain future Indebtedness of the Company ranking pari
passu with the Securities. Each Holder of this Security, by accepting the same, (a) agrees to and shall be bound by the provisions of the Indenture, (b) authorizes and directs
the Trustee on his behalf to take such action as may be provided in the Indenture and (c) appoints the Trustee his attorney-in-fact for such purpose. 
  
 5. Redemption. 
  
 The Company may redeem the 7 1/8% Securities in whole but not in part at any time at a Redemption Price equal to 100% of the principal amount thereof plus the Make-Whole Premium, together with accrued and unpaid interest thereon, if
any, to the applicable Redemption Date. Notice of a redemption of the 7 1/8% Securities made pursuant to this
paragraph 5 shall be given in the manner set forth in Section 3.3 of the Indenture; provided,
however, that any such notice need not set forth the Redemption Price but need only set forth the calculation
thereof as described in the immediately preceding sentence of this paragraph 5. The Redemption Price, calculated as aforesaid, shall be set forth in an Officer’s Certificate delivered by the Company to the Trustee no later than one Business Day
prior to the Redemption Date. 
  
 At any time on or after November 1, 2008, the Company may redeem the 7 1/8% Securities for cash at its option, in whole or in part, at the following Redemption Prices (expressed as percentages of the principal amount) if redeemed
during the 12-month period commencing November 1 of the years indicated below, in each case, together with accrued and unpaid interest, if any, thereon to the applicable Redemption Date (subject to the right of Holders of record on the relevant
Record Date to receive interest due on an Interest Payment Date that is on or prior to the applicable Redemption Date): 
  

	 Year

	  	Percentage

	 
	 2008
	  	103.563	%
	 2009
	  	102.375	%
	 2010
	  	101.188	%
	 2011 and thereafter
	  	100.000	%

  
 Prior to November
1, 2006, the Company may redeem from time to time up to 35% of the aggregate principal amount of the 7 1/8%
Securities outstanding at a Redemption Price equal to 107.125% of the principal amount thereof, together with accrued and unpaid interest thereon, if any to the applicable Redemption Date (subject to the right of Holders of record on the relevant
Record Date to receive interest due on an Interest Payment Date that is on or prior to the applicable Redemption Date) with the Net Cash Proceeds of 
  

 A - 6 

 
one or more Equity Offerings; provided, that at least 65% of the aggregate principal amount of the 7 1/8% Securities originally issued on the Series Issue Date remain outstanding after such redemption; and
provided, further, that such redemption shall occur within 90 days after the date on which any such Equity Offering is consummated. 
  
 The 7 1/8% Securities will not have the benefit of a sinking fund. 
  
 6. Denominations; Transfer; Exchange.

  
 The 7 1/8% Securities are in registered form, without coupons, in denominations of $1,000 and integral multiples of $1,000. A Holder may register the transfer of,
or exchange 7 1/8% Securities in accordance with, the Indenture. The Registrar may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Registrar need not register the transfer of or exchange any 7 1/8% Securities (a) selected for redemption except the unredeemed portion of any 7 1/8% Security being redeemed in part or (b) for a period beginning 15 Business Days before the mailing of a notice of
an offer to repurchase or redemption and ending at the close of business on the day of such mailing. 
  
 7. Persons Deemed Owners. 
  
 The registered Holder of a 7 1/8% Security may be treated as the owner of it for all purposes. 
  
 8. Unclaimed Money. 
  
 If money for the payment of principal or interest remains unclaimed for two years, the Trustee and the Paying Agent(s) will pay the money back to the
Company at its written request. After that, all liability of the Trustee and such Paying Agent(s) with respect to such money shall cease. 
  
 9. Discharge Prior to Redemption or Maturity. 
  
 Except as set forth in the Indenture, if the Company irrevocably deposits with the Trustee, in trust, for the benefit of the Holders, U.S. legal
tender, U.S. Government Obligations or a combination thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized firm of independent public accountants, to pay the principal of, premium, if any, and interest on such
7 1/8% Securities on the stated date for payment thereof or on the redemption date of such principal or
installment of principal of, premium, if any, or interest on such 7 1/8% Securities, the Company will be
discharged from certain provisions of the Indenture and the 7 1/8% Securities (including the restrictive
covenants described in paragraph 11 below, but excluding its obligation to pay 

  

 A - 7 

 
the principal of, premium, if any, and interest on the 7 1/8% Securities). Upon satisfaction of certain additional conditions set forth in the Indenture, the Company may elect to have its obligations and the obligations of the Subsidiary Guarantors discharged
with respect to outstanding 7 1/8% Securities. 
  
 10. Amendment; Supplement; Waiver. 
  
 The Company, the Subsidiary Guarantors and the Trustee may enter into a supplemental indenture for certain limited purposes without the consent of the Holders. Subject to certain exceptions, the Indenture or the 7 1/8% Securities may be amended or supplemented with the written consent of the Holders of not less than a majority in
aggregate principal amount of the 7 1/8% Securities then outstanding (except that any amendments or supplements
to the provisions relating to security interests or with respect to the Guarantees of the Subsidiary Guarantors shall require the consent of the holders of not less than 66% of the aggregate principal amount of the Securities then outstanding), and
any existing Default or Event of Default or compliance with any provision may be waived with the consent of the Holders of a majority in aggregate principal amount of the 7 1/8% Securities then outstanding. Without notice to or consent of any Holder, the parties thereto may under certain circumstances amend or supplement the Indenture or the 7 1/8% Securities to, among other things, cure any ambiguity, defect or inconsistency, or make any other change that
does not adversely affect the rights of any Holder of a 7 1/8%
Security. 
  
 11. Restrictive Covenants. 
  
 The Indenture imposes certain limitations on the ability of the Company, the Subsidiary Guarantors and any of their respective Restricted Subsidiaries to, among other things, incur additional Indebtedness and issue
Disqualified Stock, pay dividends or make certain other Restricted Payments, enter into certain transactions with Affiliates, incur Liens, sell assets and subsidiary stock, merge or consolidate with any other Person or transfer (by lease, assignment
or otherwise) substantially all of the properties and assets of the Company. The limitations are subject to a number of important qualifications and exceptions and certain restrictive covenants will cease to be applicable under certain
circumstances. The Company must periodically report to the Trustee on compliance with such limitations. 
  
 12. Repurchase at Option of Holder. 
  
 (a) If there is a Change of Control Triggering Event, the Company shall be required to offer irrevocably to purchase on the Change of Control Purchase Date all outstanding 7 1/8% Securities at a purchase price equal to 101% of the principal amount thereof, plus (subject to the right of
Holders of record on a Record Date that is on or prior to such Change of Control Purchase Date to receive interest due on the Interest Payment Date to which such 

  

 A - 8 

 
Record Date relates) accrued and unpaid interest, if any, to the Change of Control Purchase Date. Holders of 7 1/8% Securities will receive a Change of Control Offer from the Company prior to any related Change of Control
Purchase Date and may elect to have such 7 1/8% Securities purchased by completing the form entitled “Option
of Holder to Elect Purchase” appearing below. 
  
 (b) The Indenture imposes certain limitations on the ability of the
Company, the Subsidiary Guarantors or any of their respective Restricted Subsidiaries to sell assets and subsidiary stock. In the event the Net Cash Proceeds from a permitted Asset Sale exceed certain amounts, as specified in the Indenture, the
Company will be required either to reinvest the proceeds of such Asset Sale in a Related Business or other permitted investments, repay certain Indebtedness or to make an offer to purchase each Holder’s 7 1/8% Securities at 100% of the principal amount thereof, plus accrued interest, if any, to the purchase date. The
limitations and the Company’s obligations with respect to the use of proceeds from an Asset Sale are subject to a number of important qualifications and exceptions and will cease to be applicable under certain circumstances. 
  
 13. Notation of
Guarantee. 
  
 As set forth more fully in the
Indenture, the Persons constituting Subsidiary Guarantors from time to time, in accordance with the provisions of the Indenture, irrevocably and unconditionally and jointly and severally guarantee, in accordance with Section 12.1 of the Indenture,
to the Holders and to the Trustee and its successors and assigns, that (i) the principal of and interest on the 7 1/8% Securities will be paid, whether at the Stated Maturity or Interest Payment Dates, by acceleration, call for redemption or otherwise, and all other obligations of the Company to the Holders or the Trustee under the Indenture or
this 7 1/8% Security will be promptly paid in full or performed, all in accordance with the terms of the
Indenture and this 7 1/8% Security, and (ii) in the case of any extension of payment or renewal of this 7 1/8% Security or any of such other obligations, they will be paid in full when due or performed in accordance with the
terms of such extension or renewal, whether at the Stated Maturity, as so extended, by acceleration or otherwise. Such Guarantees shall cease to apply, and shall be null and void, with respect to any such guarantor who, pursuant to Article 12 of the
Indenture, is released from its Guarantees, or whose Guarantees otherwise cease to be applicable pursuant to the terms of the Indenture. 
  

 A - 9 

	14.	Successor 

  
 When a successor assumes all the obligations of its predecessor under the 7 1/8% Securities and the Indenture, the predecessor will be released from those obligations. 
  
 15. Defaults and Remedies. 
  
 If an Event of Default with respect to the 7 1/8% Securities occurs and is continuing (other than an Event of Default relating to bankruptcy, insolvency or
reorganization of the Company), then either the Trustee or the Holders of 25% in aggregate principal amount of the 7 1/8% Securities then outstanding may declare all 7 1/8%Securities to be due and payable immediately
in the manner and with the effect provided in the Indenture. Holders of 7 1/8% Securities may not enforce the
Indenture or the 7 1/8% Securities, except as provided in the Indenture. The Trustee may require indemnity
satisfactory to it before it enforces the Indenture or the 7 1/8% Securities. Subject to certain limitations,
Holders of a majority in principal amount of the then outstanding 7 1/8% Securities may direct the Trustee in its
exercise of any trust or power with respect to such 7 1/8% Securities. The Trustee may withhold from Holders of
7 1/8% Securities notice of any continuing Default or Event of Default (except a Default in payment of principal
or interest) if it determines that withholding notice is in their interest. 
  
 16. Trustee and Agent Dealings with Company. 
  
 The Trustee and each Agent under the Indenture, in its individual or any
other capacity, may make loans to, accept deposits from, and perform services for the Company or any Subsidiary Guarantor or any of their Subsidiaries or any of their respective Affiliates, and may otherwise deal with such Persons as if it were not
the Trustee or such agent. 
  
 17. No Recourse Against Others.

  
 No recourse for the payment of the principal of,
premium, if any, or interest on the 7 1/8% Securities or for any claim based thereon or otherwise in respect
thereof, and no recourse under or upon any obligation, covenant or agreement of the Company or the Subsidiary Guarantors in the Indenture, or in the 7 1/8% Securities or because of the creation of any Indebtedness represented thereby, shall be had against any incorporator, partner, stockholder, officer, director, employee or controlling Person of the
Company or the Subsidiary Guarantors or of any successor Person thereof, except as an obligor or guarantor of the 7 1/8% Securities pursuant to the Indenture. Each Holder, by accepting the 7 1/8% Securities, waives
and releases all such liability. 

  

 A - 10 

 18. Authentication. 
  
 This 7 1/8% Security shall not be valid until the Trustee or authenticating agent signs the certificate of authentication on the other side of this 7 1/8% Security. 
  
 19. Abbreviations and Defined Terms. 
  
 Customary abbreviations may be used in the name of a Holder of a 7 1/8% Security or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 
  
 20. CUSIP Numbers. 
  
 Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company will cause CUSIP numbers to be printed on the 7 1/8% Securities
as a convenience to the Holders of the 7 1/8% Securities. No representation is made as to the accuracy of such
numbers as printed on the 7 1/8% Securities and reliance may be placed only on the other identification numbers
printed hereon. 
  

	21.	Additional Rights of Holders of Transfer Restricted Notes.5  

  
 In addition to the rights provided to Holders of 7 1/8% Securities under the Indenture, Holders of Transfer Restricted Notes shall have all the rights set forth in the Registration Rights Agreement dated as of the date of the Twelfth Supplemental
Indenture, among the Company, the Subsidiary Guarantors and the Initial Purchasers. 
  

	22.	Governing Law. 

  
 THE INDENTURE AND THE 7 1/8% SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND NEW YORK CIVIL PRACTICE LAWS
AND RULES 327(b). 

 5 To be included only on Transfer Restricted Notes. 
  

 A - 11 

 [FORM OF ASSIGNMENT] 
  
 I or we assign this Security to 
  

	

	

	

  
 (Print or type name, address and
zip code of assignee) 
  
 Please insert Social Security or other
identifying number of assignee 
  

	  

	 	 

  
 and irrevocably appoint
                     agent to transfer this Security on the books of the Company. The agent may substitute another to act for him.

  

					
	Dated:	 	 	 	 	 	Signed:	 	 
	 	
	 	 	 	 	

	 	 	 	 	 	 	 	 	 (Sign exactly as name appears on
 the other side of this Security)

  
 Signature Guarantee**
                                        
                     

	**	NOTICE: The Signature must be guaranteed by an Institution which is a member of one of the
following recognized signature Guarantee Programs: (i) The Securities Transfer Agent Medallion Program (STAMP); (ii) The New York Stock Exchange Medallion Program (MNSP); (iii) The Stock Exchange Medallion Program (SEMP); or (iv) in such other
guarantee program acceptable to the Trustee. 

  

 A - 12 

 OPTION OF HOLDER TO ELECT PURCHASE 
  
 If you want to elect to have this Security purchased by the Company pursuant to Section 5.04 of the Twelfth Supplemental
Indenture or Article 10 of the Indenture, check the appropriate box: 
  
  ̈ Section 4.12 
  ̈ Article 10. 
  
 If you want to elect to have only part of this Security purchased by the Company pursuant to Section 4.12 or Article 10 of the Indenture, as the case
may be, state the amount you want to be purchased: $                    . 
  

					
	Dated:	 	 	 	 	 	Signature:	 	 
	 	
	 	 	 	 	

	 	 	 	 	 	 	 	 	 (Sign exactly as your name appears on
 the other side of this Security)

  
 Signature Guarantee***
                                        
                     

	***	NOTICE: The Signature must be guaranteed by an Institution which is a member of one of the following recognized signature Guarantee Programs: (i) The Securities
Transfer Agent Medallion Program (STAMP); (ii) The New York Stock Exchange Medallion Program (MNSP); (iii) The Stock Exchange Medallion Program (SEMP); or (iv) in such other guarantee program acceptable to the Trustee. 

  

 A - 13 

 SCHEDULE OF EXCHANGES OF CERTIFICATED NOTES8 
  
 The following exchanges of a part of this Global Security for Certificated Securities have been made: 
  

	 Date of Exchange

	 	 Amount of decrease in
Principal Amount
 of this Global Note

	 	 Amount of increase in
Principal Amount of
 this Global Note

	 	 Principal Amount of this
Global Note following such
decrease (or increase)

	 	 Signature of authorized
officer of Trustee or Note
Custodian

  

	8	This should be included only if the Security is issued in global form. 

  

 A - 14 

 EXHIBIT B 
 FORM OF CERTIFICATE OF TRANSFER 
  
 Host
Marriott, L.P. 
 6903 Rockledge Drive, Suite 1500 
 Bethesda, Maryland 20817 
 Attention: Chief Financial Officer 
  
 The Bank of New York 
 101 Barclay
Street 
 New York, New York 10286 
 Attention:
Corporate Trust Department 
  
 Re: Series J Senior Notes
due 2013 
  
 Dear Sirs: 
  
 Reference is hereby made to the Amended and Restated Indenture, dated as
of August 5, 1998 (the “Base Indenture”), among HMH Properties, Inc., its Parents and the Subsidiary Guarantors named therein (collectively, the “Subsidiary Guarantors”) and The Bank of New York (the “Trustee”), and the
Twelfth Supplemental Indenture to the Base Indenture, dated as of December 14, 2001 (the “Twelfth Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), among Host Marriott, L.P., as issuer (the
“Company”), the Subsidiary Guarantors and the Trustee. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.
                    , (the “Transferor”) owns and proposes to transfer the Note[s] or interest in such Note[s] specified in Annex A
hereto, in the principal amount of $                     in such Note[s] or interests (the “Transfer”), to
                     (the “Transferee”), as further specified in Annex A hereto. In connection with the Transfer, the Transferor
hereby certifies that: 
  
 [CHECK ALL THAT APPLY] 
  
 1. Check if Transferee will take delivery of a beneficial interest in a Rule
144A Restricted Global Note or a Certificated Note Pursuant to Rule 144A. The Transfer is being effected pursuant to and in accordance with Rule 144A under the United States Securities Act of 1933, as amended (the “Securities
Act”), and, accordingly, the Transferor hereby further certifies that the beneficial interest or Certificated Note is being transferred to a Person that the Transferor reasonably believed and believes is purchasing the beneficial interest or
Certificated Note for its own account, or for one or more accounts with respect to which such Person exercises sole investment discretion, and such Person and each such account is a “qualified institutional buyer” within the meaning of
Rule 144A in a transaction meeting the requirements of Rule 144A and such Transfer is in compliance with any applicable blue sky securities laws of any State of the United States and the restrictions set forth in the Private Placement Legend. Upon
consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Certificated Note will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the
Restricted Global Note and/or the Certificated Note and in the Indenture and the Securities Act. 
  
 1A. Check if Transferee will take delivery of a beneficial interest in a Regulation S Restricted Global Note or a Certificated Note Pursuant to Regulation S. The Transfer is being effected
pursuant to and in accordance with Regulation S under the United States Securities Act, and, accordingly, the Transferor hereby further certifies that: 
  

 B - 1 

 (a) the offer of the beneficial interest or Certificated Note being transferred was
not made to a person in the United States; 
  
 (b) either: 
  
 (i) at the
time the buy order was originated, the Transferee was outside the United States or the Transferor and any person acting on its behalf reasonably believed that the Transferee was outside the United States; or 
  
 (ii) the transaction was executed in, on or through the
facilities of a designated offshore securities market and neither the Transferor nor any person acting on its behalf knows that the transaction was prearranged with a buyer in the United States; 
  
 (c) no directed selling efforts have been made in
contravention of the requirements of Rule 903(b) or 904(b) of Regulation S, as applicable; and 
  
 (d) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act; 
  
 and such Transfer is in compliance with any applicable blue sky securities laws of any
State of the United States and the restrictions set forth in the Private Placement Legend. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Certificated Note will be
subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Note and/or the Certificated Note and in the Indenture and the Securities Act. 
  
 2. Check and complete if Transferee will take delivery of a beneficial interest
in a Restricted Certificated Note pursuant to any provision of the Securities Act other than Rule 144A or Regulation S. The Transfer is being effected in compliance with the transfer restrictions applicable to beneficial interests in
Restricted Global Notes and Restricted Certificated Notes and pursuant to and in accordance with the Securities Act and any applicable blue sky securities laws of any State of the United States, and accordingly the Transferor hereby further
certifies that (check one): 
  

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

  

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

  

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

  

	 ̈	 (d) such Transfer is being effected to an Institutional Accredited Investor and pursuant to an exemption from the registration requirements of the Securities Act
other than Rule 144A, or Rule 144, and the Transferor hereby further certifies that it has not engaged in any general solicitation within the meaning of Regulation D under the Securities Act and the Transfer complies with the transfer restrictions
applicable to beneficial interests in a Restricted Global Note or Restricted Certificated Notes (including those set forth in the Private Placement Legend) and the requirements of the 

  

 B - 2 

 
exemption claimed, which certification is supported by (1) a certificate executed by the Transferee in a form of Exhibit D to the Twelfth Supplemental
Indenture and (2) if such Transfer is in respect of a principal amount of Series H Notes at the time of transfer of less than $250,000, an Opinion of Counsel provided by the Transferor or the Transferee (a copy of which the Transferor has attached
to this certification and provided to the Company, which has confirmed its acceptability), to the effect that such Transfer is in compliance with the Securities Act. Upon consummation of the proposed transfer in accordance with the terms of the
Indenture, the Certificated Note will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Certificated Notes and in the Indenture and the Securities Act. 
  
 3. Check if Transferee will take delivery of a beneficial interest in an
Unrestricted Global Note or of an Unrestricted Certificated Note. 
  
  ̈     (a) Check if Transfer is Pursuant to Rule 144. (i) The Transfer is being effected
pursuant to and in accordance with Rule 144 under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any State of the United States and (ii) the restrictions
on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Certificated Note will no longer be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on Restricted Certificated Notes and in the Indenture
and the Securities Act. 
  
  ̈     (a1) Check if Transfer is Pursuant to Regulation S. (i) The Transfer is being effected pursuant to and in accordance with Regulation
S under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any State of the United States and (ii) the restrictions on transfer contained in the Indenture and
the Private Placement Legend are not required in order to maintain compliance with the Securities Act. 
  
 The Transferor hereby further certifies that: 
  
 (a) the offer of the beneficial interest or Certificated Note being transferred was not made to a person in the United States;

  
 (b) either: 
  
 (i) at the time the buy order was originated, the
Transferee was outside the United States or the Transferor and any person acting on its behalf reasonably believed that the Transferee was outside the United States; or 
  
 (ii) the transaction was executed in, on or through the facilities of a designated offshore securities
market and neither the Transferor nor any person acting on its behalf knows that the transaction was prearranged with a buyer in the United States; 
  
 (c) no directed selling efforts have been made in contravention of the requirements of Rule 903(b) or 904(b) of Regulation S, as
applicable; and 
  

 B - 3 

 (d) the transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act. 
  
 Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Certificated Note will no longer be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global
Notes, on Restricted Certificated Notes and in the Indenture and the Securities Act. 
  
  ̈     (b) Check if Transfer is Pursuant to Other Exemption. (i) The
Transfer is being effected pursuant to and in compliance with an exemption from the registration requirements of the Securities Act other than Rule 144 or Regulation S and in compliance with the transfer restrictions contained in the Indenture and
any applicable blue sky securities laws of any State of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act.
Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Certificated Note will not be subject to the restrictions on transfer enumerated in the Private Placement Legend printed
on the Restricted Global Notes or Restricted Certificated Notes and in the Indenture. 
  

 B - 4 

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

  

	  

	 	 	 	Dated:	 	  

	[Insert Name of Transferor]	 	 	 	 	 	 

  

	By:	 	  

	    Name:
	    Title:

  
  
  
  

 B - 5 

 ANNEX A TO CERTIFICATE OF TRANSFER 
  
 1. The Transferor owns and proposes to transfer the following: 
  
 [CHECK ONE OF (a) OR (b)] 
  

	 ̈	(a) a beneficial interest in a Restricted Global Note
(CUSIP[                    ]), or 

  

	 ̈	(b) a Restricted Certificated Note. 

  
 2. After the Transfer the Transferee will hold: 
  
 [CHECK ONE] 
  

	 ̈	(a) a beneficial interest in a/an: 

  

	 ̈	        (i) Restricted Global Note
(CUSIP[                    ]), or 

  

	 ̈	        (ii) Unrestricted Global Note (CUSIP     ); or 

  

	 ̈	(b) a Restricted Certificated Note; or 

  

	 ̈	(c) an Unrestricted Certificated Note, 

  
 in accordance with the terms of the Indenture. 
  

 B - 6 

 EXHIBIT C 
 FORM OF CERTIFICATE OF EXCHANGE 
  
 Host
Marriott, L.P. 
 6903 Rockledge Drive, Suite 1500 
 Bethesda, Maryland 20817 
 Attention: Chief Financial Officer 
  
 The Bank of New York 
 101 Barclay
Street 
 New York, New York 10286 
 Attention:
Corporate Trust Department 
  
 Re: Series J Senior Notes
due 2013 
  
 Dear Sirs: 
  
 Reference is hereby made to the Amended and Restated Indenture, dated as
of August 5, 1998 (the “Base Indenture”), among HMH Properties, Inc., its Parents and the Subsidiary Guarantors named therein (collectively, the “Subsidiary Guarantors”) and The Bank of New York, as trustee (the
“Trustee”), and the Twelfth Supplemental Indenture to the Base Indenture, dated as of November 6, 2003 (the “Twelfth Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), among Host Marriott,
L.P., as issuer (the “Company”), the Subsidiary Guarantors and the Trustee. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture. 
  
                     , (the “Owner”) owns and proposes to exchange the Note[s] or interest in such Note[s] specified
herein, in the principal amount of $                     in such Note[s] or interests (the “Exchange”). In connection with the
Exchange, the Owner hereby certifies that: 
  
 1.
Exchange of Restricted Certificated Notes or Beneficial Interests in a Restricted Global Note for Unrestricted Certificated Notes or Beneficial Interests in an Unrestricted Global Note 
  
  ̈                     (a) Check if Exchange is from beneficial interest in a Restricted Global Note to
beneficial interest in an Unrestricted Global Note. In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for a beneficial interest in an Unrestricted Global Note in an equal principal amount,
the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Global Notes and pursuant
to and in accordance with the United States Securities Act of 1933, as amended (the “Securities Act”), (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the beneficial interest in an Unrestricted Global Note is being acquired in compliance with any applicable blue sky securities laws of any State of the United States. 
  

 C - 1 

  ̈
                    (b) Check if Exchange is from beneficial interest in a Restricted Global Note to Unrestricted Certificated
Note. In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for an Unrestricted Certificated Note, the Owner hereby certifies (i) the Certificated Note is being acquired for the Owner’s
own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Restricted Global Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the Certificated Note is being acquired in compliance with any applicable blue sky securities laws of any
State of the United States. 
  
  ̈                     (c) Check if Exchange is from Restricted
Certificated Note to beneficial interest in an Unrestricted Global Note. In connection with the Owner’s Exchange of a Restricted Certificated Note for a beneficial interest in an Unrestricted Global Note, the Owner hereby certifies
(i) the beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to Restricted Certificated Notes and pursuant to and in
accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest is being
acquired in compliance with any applicable blue sky securities laws of any State of the United States. 
  
  ̈
                    (d) Check if Exchange is from Restricted Certificated Note to Unrestricted Certificated Note. In
connection with the Owner’s Exchange of a Restricted Certificated Note for an Unrestricted Certificated Note, the Owner hereby certifies (i) the Unrestricted Certificated Note is being acquired for the Owner’s own account without transfer,
(ii) such Exchange has been effected in compliance with the transfer restrictions applicable to Restricted Certificated Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the Unrestricted Certificated Note is being acquired in compliance with any applicable blue sky securities laws of any State of the
United States. 
  
 2. Exchange of Certificated
Notes or Beneficial Interests in Restricted Global Notes for Restricted Certificated Notes or Beneficial Interests in Restricted Global Notes 
  
  ̈
                    (a) Check if Exchange is from beneficial interest in a Restricted Global Note to Restricted Certificated
Note. In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for a Restricted Certificated Note with an equal principal amount, the Owner hereby certifies that the Restricted Certificated Note
is being acquired for the Owner’s own account without transfer. Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the Restricted Certificated Note issued will continue to be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Certificated Note and in the Indenture and the Securities Act. 
  

 C - 2 

  ̈
                    (b) Check if Exchange is from Restricted Certificated Note or Unrestricted Certificated Note to beneficial interest
in a Restricted Global Note. In connection with the Exchange of the Owner’s Restricted Certificated Note for a beneficial interest in the Restricted Global Note with an equal principal amount, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without transfer and (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Restricted Global Notes and pursuant to and in accordance
with the Securities Act, and in compliance with any applicable blue sky securities laws of any State of the United States. Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the beneficial interest issued will
be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the relevant Restricted Global Note and in the Indenture and the Securities Act. 
  
 This certificate and the statements contained herein are made for your benefit and the benefit of the Company. 
  
  

 [Insert Name of Owner] 
  

	By:	 	  

	    Name:
	    Title:

  
 Dated:                     
  

 C-3 

 EXHIBIT D 
 FORM OF CERTIFICATE FROM ACQUIRING 
 INSTITUTIONAL ACCREDITED INVESTOR 
  
 Host Marriott, L.P. 
 6903 Rockledge Drive 
 Bethesda, Maryland 20817 
 Attention: Chief Financial Officer 
  
 The Bank of New York 
 101 Barclay Street 
 New York, New York 10286 
 Attention: Corporate Trust Department 
  
 Re: Series J Senior Notes due 2013 
  
 Dear Sirs: 
  
 Reference is hereby made to the Amended and Restated Indenture, dated as of August 5, 1998 (the “Base Indenture”), among HMH Properties,
Inc., its Parents and the Subsidiary Guarantors named therein (collectively, the “Subsidiary Guarantors”) and The Bank of New York, as trustee (the “Trustee”), and the Twelfth Supplemental Indenture to the Base Indenture, dated
as of November 6, 2003 (the “Twelfth Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), among Host Marriott, L.P., as issuer (the “Company”), the Subsidiary Guarantors and the Trustee.
Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture. 
  
 In connection with our proposed purchase of
$                     aggregate principal amount of: (a) a beneficial interest in a Global Note, or (b) a Certificated Note, we confirm that:

  
 1. We understand that any subsequent transfer of the
Securities or any interest therein is subject to certain restrictions and conditions set forth in the Indenture and the undersigned agrees to be bound by, and not to resell, pledge or otherwise transfer the Securities or any interest therein except
in compliance with, such restrictions and conditions and the United States Securities Act of 1933, as amended (the “Securities Act”). 
  
 2. We understand that the offer and sale of the Securities have not been registered under the Securities Act, and that the Securities and any interest
therein may not be offered or sold except as permitted in the following sentence. We agree, on our own behalf and on behalf of any accounts for which we are acting as hereinafter stated, that if we should sell the Securities or any interest therein,
we will do so only (a) to the Company or any Subsidiary Guarantor or any of their respective wholly owned subsidiaries, (b) to a person who is a QIB purchasing for its own account or for the account of a QIB in a transaction meeting the requirements
of Rule 144A, (c) in a transaction meeting the requirements of a Rule 144 under the Securities Act, (d) to an Institutional “Accredited Investor” (as defined in Rule 501 (a)(1), (2), (3) 

  

 D-1 

 
or (7) of Regulation D under the Securities Act) that, prior to such transfer, furnishes the trustee a signed letter containing certain representations
and agreements relating to the transfer of this Security (the form of which can be obtained from the trustee) and, if such transfer is in respect of an aggregate principal amount of Notes less than $250,000, an opinion of counsel acceptable to the
Company that such transfer is in compliance with the Securities Act, (e) outside the United States in a transaction complying with the provisions of Rule 904 under the Securities Act, (f) in accordance with another exemption from the registration
requirements of the Securities Act, (and based upon an opinion of counsel acceptable to the Company), or (g) pursuant to an effective registration statement and, in each case, in accordance with the applicable securities laws of any state of the
United States or any other applicable jurisdiction and in accordance with the other provisions of the Private Placement Legend. 
  
 3. We understand that, on any proposed resale of the Securities or beneficial interest therein, we will be required to furnish to you and the Company
such certifications, legal opinions and other information as you and the Company may reasonably require to confirm that the proposed sale complies with the foregoing restrictions. We further understand that the Securities purchased by us will bear a
legend to the foregoing effect. 
  
 4. We are an
institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and have such knowledge and experience in financial and business matters as to be capable of evaluating the merits
and risks of our investment in the Securities, and we and any accounts for which we are acting are each able to bear the economic risk of our or its investment. 
  
 5. We are acquiring the Securities or beneficial interest therein purchased by us for our own account or for one or more
accounts (each of which is an institutional “accredited investor”) as to each of which we exercise sole investment discretion. 
  
 You and the Company are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. 
  

	  

	 	 	 	Dated:	 	                    ,
            
	[Insert Name of Accredited Investor]	 	 	 	 	 	 
					
	By:	 	  

	 	 	 	 	 	 
	Name:	 	 	 	 	 	 
	Title:	 	 	 	 	 	 

  

 D-2

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