Document:

exh10_59.htm

    
      EXHIBIT
        10.59

       

      
        

      

    

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    Master
      Lease Agreement

     

    Wal-Mart
      Stores East, LP, individually
      and only as to Stores (as defined in Section 1.1K of this Master Lease) owned,
      leased, or operated in AL, CT, DC, DE, FL, GA, IN, KY, ME, MD, MA, MI, MS,
      MO,
      NH, NJ, NM, NY, NC, OH, OK, PA, RI, SC, TN, VT, VA, WI, WV; Wal-Mart Stores,
      Inc., individually and only as  to Stores owned or leased in AK, AR,
      AZ, CA, CO, HI, ID, IL, IA, KS, MN, MT, NE, NV, ND, OR, SD, UT, WA, WY; Wal-Mart
      Louisiana, LLC, individually and only as  to Stores owned or leased in
      Louisiana; and Wal-Mart Stores Texas, LP, individually and only as  to
      Stores owned or leased in Texas (each referred to as “Landlord” for purposes of
      this Master Lease Agreement as it applies to the Store) and Portrait Corporation
      of America, Inc. (“Tenant”) enter into this Master Lease Agreement effective the
      8th day of
      June
      2007.

     

    WHEREAS,
      Landlord operates discount
      retail stores nationwide;

     

    WHEREAS,
      Tenant operates business(es)
      offering photography products and services (described more fully in Appendix-1)
      and desires to lease space within one or more Stores from which to operate
      such
      business(es); and

     

    WHEREAS,
      Landlord desires to lease
      space in one or more of its Stores to Tenant, so Tenant may operate such
      business(es) in the Store.

     

    NOW,
      THEREFORE, in consideration of the
      mutual promises and premises set forth above and below, the receipt and
      sufficiency of which the parties hereby acknowledge, the parties hereby agree
      as
      follows:

     

    Article
      I

    General
      Provisions

     

    
      	
              1.1

            	
              Definitions.

            

    

     

    A.     “Attachment
      A” means an
      attachment to this Master Lease Agreement, incorporated into this Master Lease
      Agreement when fully signed by Tenant and by the particular Landlord with
      authority to lease the property identified in the applicable Attachment A,
      that
      identifies the Store in which the Leased Premises is located; the anticipated
      Delivery Window, as defined in Section 1.1F, below; the anticipated Delivery
      Date, as defined in Section 1.1E, below; the anticipated Rent Commencement
      Date,
      as defined in Section 4.1, below; and the Extension, as described in the
      applicable Attachment A.

     

    B.     “Appendix-1”
      means an appendix to this Master Lease Agreement, incorporated into this Master
      Lease Agreement when fully signed by Tenant and Landlord, which provides
      obligations of Landlord and Tenant specific to Tenant’s Permitted Uses (as
      designated in Appendix-1) contemplated by Landlord and Tenant at the time this
      Master Lease Agreement was entered into.

     

    C.      “Commencement
      Notice” means an attachment to this Master Lease Agreement, incorporated into
      this Master Lease Agreement at the time of delivery by Landlord of the
      Commencement Notice to Tenant in accordance with Section 19.10, below, which
      identifies the actual Rent Commencement Date and the actual Delivery Date,
      as
      each term is defined below.

     

    D.      “Common
      Area” means the
      public access areas of the Store and surrounding land leased or owned by
      Landlord on which the Store is located including, but not limited to, the
      parking areas,

     

    
      
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    driveways,
      sidewalks, entrances, and exits in the Store and between the Store and the
      Leased Premises.

     

    E.      “Delivery
      Date” means the date on which Landlord delivers possession of the applicable
      Leased Premises to Tenant.

     

    F.     “Delivery
      Window” means the span of time in which Landlord may deliver possession of the
      Leased Premises to Tenant.

     

    G.      “Due
      Date” means the first (1st) calendar
      day of
      each month, unless this day falls on New Year’s Day, Memorial Day, Independence
      Day (US), Labor Day, Thanksgiving, or Christmas, in which case the Due Date
      means the following business day.

     

    H.     “Leased
      Premises” means the area of a Store leased to the Tenant by Landlord subject to
      the terms and conditions of this Agreement.

     

    I.      “Master
      Lease” means this Master Lease Agreement and any amendment, appendix,
      attachment, and exhibit attached to and incorporated into this Master Lease
      Agreement.

     

    J.      “Rent”
      means the Base Rent defined in Section 4.2, below, and described in the
      applicable Attachment A, plus any additional or other rent, interest, tax,
      or
      other sum this Master Lease obligates Tenant to pay Landlord.

     

    K.     “Store”
      or “Stores” means the “Wal-Mart” retail store operated by Landlord.

     

    L.      “Sublessee”
      means the franchisee, licensee, concessionaire, or other party, of Tenant which,
      pursuant to a separate agreement between it and Tenant, is operating the Leased
      Premises as part of a marketing plan or system prescribed by Tenant that is
      substantially associated with Tenant’s trademark, service mark, trade name,
      logotype, advertising, or other commercial symbol designated by Tenant and
      is
      subject to the terms and conditions of this Master Lease.

     

    M.    “White
      Box” means the interior condition of the Leased Premises with sprinklers,
      sheetrock walls, ceiling grid, HVAC installed, 100 amp service to the Leased
      Premises, security gate, acoustic ceiling tile, lighting and electrical outlets,
      and access to water and sewer.

     

    
      	
              1.2

            	
              Landlord’s
                Entry into the Agreement.

            

    

     

    A.     Each
      Landlord enters into this Master Lease severally and solely as to the Store
      it
      operates and in which the Leased Premises is located and without any obligation
      with respect to any other Store.  Accordingly, only the respective
      Landlord that operates the Store in which such Leased Premises is located may
      execute, for a Leased Premises, an Attachment A.

     

    B.     If,
      during the term of this Master Lease, it is determined that the use of the
      Leased Premises is Restricted, as defined in the following sentence, Landlord
      may remove/cancel the applicable Attachment A from the Master Lease and the
      applicable Attachment A will be null and void without further action by Landlord
      or Tenant.  Neither Landlord nor Tenant will be liable to the other
      for any damages, loss, or liability in connection with the cancellation of
      this
      Master Lease as to the affected Leased Premises.  For the purpose of
      this paragraph, “Restriction” means any covenant, condition, law, regulation,
      restriction, rule, or other matter binding to the Leased Premises, Landlord,
      or
      Tenant or any combination thereof, which acts to prohibit or materially restrict
      the use of the Leased Premises from any of the matters contemplated by this
      Master Lease

     

    
      
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    including,
      without limitation, that ability of Landlord to lease to Tenant or Tenant’s
      ability to operate its type of business in the Leased Premises.  By
      way of example, and not of limitation, if Landlord is required to obtain the
      consent of a third party prior to leasing space to the Tenant in a particular
      Store, the requirement of consent is a Restriction.

     

    
      	
              1.3

            	
              Landlord’s
                Overlease.  If Landlord is itself a lessee of a Store in
                which a Leased Premises is located, so that this Master Lease as
                to the
                particular Leased Premises is actually a sublease, Tenant accepts
                this
                Master Lease subject to all the terms and conditions of the overlease
                under which Landlord holds the Leased Premises as
                lessee.  Tenant covenants that it will do no act or thing that
                would constitute a violation of the
                overlease.

            

    

     

    
      	
              1.4

            	
              Granting
                Language.  Upon the full execution of the
                applicable Attachment A, Landlord leases to Tenant and Tenant rents
                from
                Landlord (subject and subordinate to any mortgage, deed or trust,
                or other
                lien presently existing or hereafter placed upon the applicable Leased
                Premises, the Common Areas, the Store, or any combination thereof)
                the
                Leased Premises identified in the applicable Attachment A to have
                and to
                hold subject to the terms of this Agreement, by which the parties
                intend
                to be legally bound as to the applicable Leased Premises upon the
                execution by each appropriate party of both this Master Lease and
                the
                applicable Attachment
                A.

            

    

     

    Article
      II

    Construction
      and Acceptance of the Leased Premises

     

    
      	
              2.1

            	
              Landlord’s
                Obligation to Deliver Possession on the Delivery
                Date.

            

    

     

    A.     Landlord
      shall use
      commercially reasonable efforts to deliver the applicable Leased Premises to
      Tenant in the condition and during the Delivery Window specified in the
      applicable Attachment A.

     

    (1)     Unless
      otherwise agreed to
      in the applicable Attachment A, Landlord shall notify Tenant, in writing [***],
      of the status of the construction of the applicable Leased Premises and of
      the
      anticipated Delivery Date within the Delivery Window on which Landlord estimates
      it will deliver possession of the applicable Leased Premises to
      Tenant.

     

    (2)     Landlord,
      at any time prior to notifying Tenant of the anticipated Delivery Date,
      [***].

     

    (3)     Landlord
      may revise the anticipated Delivery Date at any time after Landlord notifies
      Tenant of the anticipated Delivery Date, in accordance with this Article II,
      but
      in no event may Landlord revise the anticipated Delivery Date with
      [***].

     

    B.     [***].  If
      Landlord and Tenant agree that delivery of possession is unfeasible within
      a
      commercially reasonable amount of time after the Delivery Window specified
      on
      the applicable Attachment A, the parties, without liability, may terminate
      this
      Master Lease as to the applicable Leased Premises.

     

    
      	
              2.2

            	
              Tenant’s
                Right of Entry.

            

    

    
      
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    A.     Prior
      to the Delivery Date, Tenant may enter the Leased Premises only to inspect
      and
      measure the Leased Premises to ready the Leased Premises for opening on the
      Rent
      Commencement Date, as described in Section 4.1, below, and as designated in
      the
      applicable Attachment A.

     

    B.     Tenant
      may enter the Leased Premises in accordance with the preceding paragraph only
      if:

     

    (1)     Landlord
      and Tenant have previously signed an Attachment A for the Leased
      Premises,

     

    (2)     Tenant
      does not interfere with Landlord’s performance of its obligations under Section
      2.1, above, or with the transaction of Landlord’s business or the business of
      any of Landlord’s other Tenants, and

     

    (3)     The
      Leased Premises is not currently in the possession of another
      tenant.

     

    C.     If
      any work or other action done by, or on behalf of, Tenant results in a stoppage
      of Landlord’s work, Tenant will immediately stop work until the parties mutually
      agree Tenant’s work can re-commence without materially interfering with
      Landlord’s obligations under Section 2.1, above, which time may not be any later
      than the Delivery Date.  Any failure by Tenant to comply with the
      provisions of this Section 2.2C is a material breach.

     

    
      	
              2.3

            	
              Acceptance
                of the Leased Premises.

            

    

     

    A.    
      Landlord makes no representations, covenants, or warranties of any kind or
      character whatsoever, express or implied, with respect to:

     

    (1)     The
      quality, condition, or [***] of the applicable Leased Premises;

     

    (2)     [***;]

     

    (3)     [***;]

     

    (4)     The
      habitability, merchantability, or fitness for a particular purpose of the
      applicable Leased Premises;

     

    (5)     [***];
      or

     

    (6)     [***.]

     

    B.     Tenant
      shall accept possession of the applicable Leased Premises when delivered by
      Landlord, even if Landlord is unable to deliver possession [***] or on the
      anticipated Delivery Date, unless this Master Lease as to the applicable Leased
      Premises has been terminated according to Section 2.1 B,
      above.

     

    C.     TENANT
      WAIVES ALL RIGHTS WITH RESPECT TO ANY DEFECT IN THE LEASED PREMISES, AND IF
      TENANT FAILS TO NOTIFY LANDLORD OF ANY DEFECT AT LEAST [***], TENANT
      CONCLUSIVELY ACCEPTS THE LEASED PREMISES “AS IS” AND WITH ALL
      FAULTS.

     

    D.     TENANT
      WAIVES ALL RIGHTS AGAINST LANDLORD WITH RESPECT TO ANY LIMITATION OR RESTRICTION
      ON ITS USE OF THE LEASED PREMISES AS A RESULT OF

     

    
      
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    ANY
      APPLICABLE LAW, RULE, OR REGULATION INCLUDING, WITHOUT LIMITATION, LAND USE
      RESTRICTIONS.

     

    
      	
              2.4

            	
              Tenant’s
                Obligations to Prepare the Leased Premises to Open for
                Business.

            

    

     

    A.     Tenant
      shall open the Leased Premises on the Rent Commencement Date (as defined in
      Section 4.1, below, and designated on the applicable Attachment
      A).  If Tenant fails to open the applicable Leased Premises on the
      Rent Commencement Date and the failure is not caused by Landlord’s material
      interference or default under this Master Lease, Landlord may charge Tenant
      liquidated damages of [***] and additional liquidated damages of [***] a day
      for
      each day, including the Rent Commencement Date, which the Leased Premises
      remains unopened as required by the preceding sentence. By way of example,
      and
      not as a limitation thereof, material interference may occur if Landlord fails
      to deliver possession to Tenant of the applicable Leased Premises with
      sufficient time before the Rent Commencement Date for Tenant to fulfill its
      obligations under this Article II.   Tenant will pay any
      liquidated damages it owes to Landlord within thirty (30) days after Tenant
      receives an invoice from Landlord for the liquidated
      damages.  Landlord and Tenant acknowledge that it would be
      impracticable to fix the actual damages suffered by Landlord as a result of
      Tenant’s failure to open the Leased Premises on the Rent Commencement Date,
      according to this paragraph, and that the amount of liquidated damages described
      in the preceding sentence represents fair and reasonable compensation to
      Landlord for this failure.  If the Leased Premises remains unopened
      for more than three (3) consecutive days following the Rent Commencement Date,
      Tenant will materially breach this Master Lease.

     

    B.     Tenant
      shall complete all Improvements within the Leased Premises in order to open
      the
      Leased Premises on the applicable Rent Commencement Date.  For the
      purposes of this Master Lease, “Improvements” means any addition, alteration,
      construction, finish, or improvement to the Leased Premises; any attachment
      of a
      permanent fixture, permanent furniture, or permanent equipment; and includes,
      but is not limited to, completing the interior walls, partitioning(s), floor
      covering, ceiling work, utilities, painting, finish work, restroom facilities,
      signage (pursuant to Section 2.6, below), and any other thing
      necessary.

     

    C.     Tenant
      shall submit to Landlord and obtain Landlord’s approval of the floor plans and
      layouts of the Leased Premises including dimensions, elevations, Improvements,
      intended colors, and Trade Fixtures (as defined in Section 2.4D(1),
      below).  Tenant shall obtain Landlord’s approval of the floor plans
      and layouts of the Leased Premises prior to seeking and obtaining any permits,
      licenses, certifications, or other documents necessary to complete the
      Improvements in the Leased Premises and install Trade Fixtures in the Leased
      Premises in accordance with this Agreement.  All Trade Fixtures and
      Improvements must accord with the plans and specifications previously approved
      by Landlord and must be of high quality materials and workmanship, comparable
      to
      or better than the tenant storefront, Improvements, and Trade Fixtures used
      by
      other retailers in the vicinity of the Store and, specifically, used at Tenant’s
      most recent prototype. Tenant may not vary from or add to the previously
      approved plans or specifications without Landlord’s prior, written consent,
      which Landlord may not unreasonably withhold or delay.  Landlord’s
      approval of Tenant’s plans and specifications is solely based on Landlord’s
      review.  Landlord's approval of the plans and specifications does not
      represent government approval or suitability of the plans and specifications
      for
      the intended purposes.

     

    
      
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    (1)      Prior
      to any roof penetrations caused by Tenant’s Improvements, Tenant shall obtain
      from Landlord’s Leasing Operations Department the contact information for the
      contractor approved to work on Landlord’s roof.

     

    (2)     If
      Tenant’s roof-top heating, ventilating, and air conditioning unit, or other
      rooftop equipment, requires steel supports in addition to the steel framing
      erected by Landlord, then Tenant will pay the cost of labor and materials for
      the installation thereof.  Mechanical equipment on the roof will be
      placed within the area designated on Landlord’s structural
      drawings.  Tenant’s plans and specifications of the proposed
      mechanical equipment must be submitted to Landlord for approval.

     

    (3)     Tenant
      will provide screening or other type of cover for such mechanical equipment
      to
      prevent visibility by the public and subject to approval of landlord and the
      local governmental authorities.  If Landlord or any governmental
      authorities requires a project standard equipment screen, Tenant will use and
      pay for same.

     

    D.     Tenant
      shall:

     

    (1)     Install
      any attached or unattached, moveable or non-moveable fixtures, furniture, or
      equipment unique to Tenant’s business, the installation and removal of which
      requires no cutting, drilling, or other defacing of the Leased Premises (“Trade
      Fixtures”).

     

    (2)     Conduct
      the Improvements and install the Trade Fixtures in a good and workmanlike manner
      in accordance with all applicable laws and in accordance with obligations and
      requirements of this Master Lease including, but not limited to, insurance,
      licensing, and regulatory compliance requirements.

     

    (3)     For
      existing locations, erect a dust wall of plywood or sheetrock, but not plastic
      or canvas, across the entrance to the Store from the Leased Premises prior
      to
      commencing Improvements and maintain the same in place throughout
      construction.

     

    (4)     Conduct
      Improvements and install Trade Fixtures without interfering with other
      construction in progress at the Store or with the transaction of Landlord’s
      business or the business of any of Landlord’s other lessees.

     

    E.     If
      Landlord requests, Tenant will secure a bond or other security satisfactory
      to
      Landlord against any loss, liability, or damage to persons or property related
      to the Improvements.

     

    
      	
              2.5

            	
              Tenant’s
                Contractors.  Tenant’s contractors must be licensed, carry
                worker’s compensation coverage as required by law, and comply with all
                applicable laws including, but not limited to, obtaining any required
                permit, license, or other documentation necessary to perform the
                construction work in connection with this Master Lease.  At
                Landlord’s request, Tenant will provide Landlord with a list of all
                contractors and subcontractors Tenant is
                using.

            

    

     

    
      	
              2.6

            	
              Signs.

            

    

     

    A.     Tenant
      may not install on the exterior of the Store any sign, light, decoration,
      painting, awning, canopy, or any other like item, (“Signs”) unless otherwise
      provided in Appendix-1.

     

    B.     Tenant
      may, with the prior, written consent of Landlord and in accordance with Section
      2.6C, install a Sign on the exterior bulkhead of the applicable Leased Premises,
      which is inside the

     

    
      
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     Store
      in which a Leased Premises is located, with Tenant’s trade name identified in
      Appendix-1 to this Master Lease and Tenant’s logo.

     

    C.     Tenant
      may not install any Sign containing images or words that may offend the
      ordinary, reasonable person including, but not limited to, words or images
      that
      are cloaked in other words or images, phrases with double meanings, and words
      or
      images commonly considered to be vulgar, swear, or curse words.  If
      Tenant’s business or trade name violates this provision, Tenant may not use the
      name in any signage in or around the Leased Premises.

     

    
      	
              2.7

            	
              Landlord’s
                Right of Re-Entry.  After the Delivery Date and before the
                Rent Commencement Date designated on the applicable Attachment A,
                Landlord
                may re-enter the applicable Leased Premises to continue any portion
                of
                Landlord’s work not yet complete.  During this period of
                re-entry, Landlord may not unreasonably interfere with any work required
                under Section 2.4 being performed by Tenant or on behalf of
                Tenant.

            

    

     

    
      	
              2.8

            	
              Certificate
                of Occupancy.  Tenant shall fax a copy of the Certificate of
                Occupancy within two (2) calendar days after receiving it to Landlord’s
                Project Management at
                [***].

            

    

     

    Article
      III

    Binding
      Effect of the Attachment A, Commencement Notice

    Master
      Lease Term and Extension

     

    
      	
              3.1

            	
              Effective
                Date of Master Lease.  This Master Lease is effective and
                binds Landlord and Tenant as of the Effective Date entered
                above.  This Master Lease terminates in its entirety upon the
                termination, for whatever reason, of every Attachment A signed by
                Landlord
                and Tenant that attaches to this Master Lease and which is incorporated
                into this Master Lease.

            

    

     

    
      	
              3.2

            	
              Binding
                Effect of the Attachment A.  This Master Lease governs each
                Leased Premises for which Landlord and Tenant execute an Attachment
                A.  Once signed by both Landlord and Tenant, each Attachment A
                attaches to and incorporates into this Master Lease binding both
                Landlord
                and Tenant to the terms and conditions in both this Master Lease
                and the
                applicable Attachment A as to the applicable Leased
                Premises.

            

    

     

    
      	
              3.3

            	
              Commencement
                Notice.  Landlord will deliver the Commencement Notice to
                Tenant, no sooner than [***] days following the actual Rent Commencement
                Date of the applicable Leased Premises.  The Commencement Notice
                is for informational purposes only and does not modify the terms
                of this
                Master Lease.  If Tenant does not receive the Commencement
                Notice within that time, Tenant will notify Landlord, in writing
                or
                verbally.  Any delay in delivery of the Commencement Notice is
                not a breach of this Master Lease.

            

    

     

    
      	
              3.4

            	
              Lease
                Term of a Specific Leased Premise.  The Lease Term for each
                Leased Premises commences on the day on which the applicable Landlord
                and
                Tenant each sign the Attachment A for that Leased Premises and continues
                until the Expiration Date.  For the purpose of this Master
                Lease, “Expiration Date” means 11:59 pm (local time as to the applicable
                Leased Premises) on the last day of the month in which the anniversary
                date of the Rent Commencement Date, designated in the applicable
                Attachment A, falls.  If the anniversary date falls between July
                1st
                and
                December 31st
                of a given
                year, and then the Expiration Date extends to 11:59 pm (local time
                as to
                the applicable Leased Premises) on January 31st
                of the
                following year.  In case of cancellation or termination, the
                Expiration Date becomes the date on which the lease is cancelled
                or
                terminated. 

            

      
        
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              3.5

            	
              Extension
                of the Lease Term.  The Lease Term for the applicable Leased
                Premises may extend, subject to the terms and conditions of this
                Master
                Lease, as designated in the applicable Attachment A.  In the
                event that the Lease Term of the applicable Leased Premises extends,
                any
                reference to the term “Lease Term” includes the period by which the Lease
                Term extends.

            

    

     

    Article
      IV

    Rent,
      Security, Tax Increases

     

    
      	
              4.1

            	
              Rent
                Commencement Date.  Tenant’s obligation under this Master
                Lease to pay Rent, in lawful money of the United States and without,
                for
                any reason, deduction or offset, begins on the Rent Commencement
                Date.  For the purposes of this Master Lease, the Rent
                Commencement Date is either:

            

    

     

    A.     The
      first day on which the Store opens for business to the public (“Grand Opening”),
      as memorialized in the applicable Commencement Notice, if the Leased Premises
      is
      located in a new, relocated, or expanded Store; or

     

    B.     The
      day specified in the applicable Attachment A, if the Leased Premises is located
      in a Store currently in operation that has not or will not be relocated or
      expanded between the time that the Attachment A is executed and the Rent
      Commencement Date.

     

    
      	
              4.2

            	
              Base
                Rent.

            

    

     

    A.     Tenant
      shall pay Base Rent to Landlord for each Leased Premises for which Landlord
      and
      Tenant execute an Attachment A at the rate set forth in the applicable
      Attachment A and any additional or other sum, rent, interest, or tax required
      by
      this Master Lease.

     

    B.     Tenant,
      without offset, notice, or demand, shall pay Base Rent in equal monthly
      installments with each monthly installment due by the Due Date.  If
      the Rent Commencement Date occurs after the first day of the month, the Base
      Rent for that month equals one-thirtieth (1/30th) of the
      normal
      monthly rent installment for each day starting on the Rent Commencement Date
      and
      continuing through midnight on the last day of that month.

     

    
      	
              4.3

            	
              Interest
                on Late Payments.

            

    

     

    A.     Tenant
      shall pay to Landlord interest on any balance of Rent unpaid more than [***]
      days following the Due Date at the prorated rate, based on a 30-day month,
      of
      the lesser of:

     

    (1)     [***]
      per month, or

     

    (2)     The
      maximum amount allowed by law.

     

    B.     Any
      interest due under this provision is additional rent, and Tenant shall pay
      it in
      full no later than the day on which it pays the unpaid balance of Rent unless
      demanded earlier by Landlord.  Interest will not accrue on any unpaid
      balance of Rent if the:

     

    (1)     Unpaid
      balance is due to an error or problem with the automatic debit, if Tenant is
      paying Rent through an automated clearing house account, and

     

    (2)     The
      error or problem was not due to the intentional or negligent act of
      Tenant.

     

    
      	
              4.4

            	
              Quarterly
                Rent Payment.  Landlord may require Tenant pay the Base Rent
                on a quarterly basis rather than monthly if, for two (2) consecutive
                months, Tenant fails to pay timely the Base
                Rent

            

      
        
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      CONFIDENTIAL
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        CONFIDENTIAL TREATMENT IS REQUESTED ARE DENOTED WITH
        BRACKETS.

       

    

    according
      to Section 4.2.  The quarter will commence on the first day of the
      month following the month that Landlord notifies Tenant in writing of this
      election.

     

    
      	
              4.5

            	
              Method
                for Rent Payment.  Tenant shall pay Rent as required in the
                applicable Attachment A.

            

    

     

    
      	
              4.6

            	
              Surety
                Bond.

            

    

     

    A.     In
      addition to any other obligation of Tenant under this Master Lease, Tenant,
      for
      each Leased Premises, shall execute and deliver a surety bond to Landlord in
      lieu of a security deposit assuring Landlord that it will perform its
      obligations herein for each Leased Premises under this Master
      Lease.

     

    B.     Tenant
      shall obtain a bond equal to the sum of three (3) months rent on the applicable
      Leased Premises from a reputable company satisfactory to Landlord.

     

    C.     In
      addition to any other right or remedy available at law, in equity, or under
      this
      Master Lease, Landlord may claim against the bond an amount equal to the Rent
      owed to Landlord that Tenant failed to pay timely, such amount not to exceed
      the
      penal sum of the bond.

     

    D.     Any
      claim or payment under the bond in no way relieves Tenant of its obligations
      under this Master Lease to pay Rent or other charges in excess of the penal
      sum
      of the bond.

     

    E.     Tenant,
      at the request of Landlord, will replace the bond when claims against the bond
      equal or exceed the penal sum of the bond.

     

    F.     Each
      bond must be in full force and effect within [***] days of Tenant signing the
      applicable Attachment A and must continue for the Lease Term of the applicable
      Leased Premises.

     

    
      	
              4.7

            	
              Taxes.

            

    

     

    A.     Landlord
      shall pay all General Taxes levied, during each fiscal tax year, against the
      Store, the Common Area, or both.  “General Taxes” means all general
      real estate taxes, general and special assessments, parking surcharges, and
      other governmental charges.

     

    B.     In
      addition to Tenant’s other obligation under this Master Lease, Tenant shall pay
      any tax or assessment:

     

    (1)     Levied
      against Tenant’s Improvements, inventory, personal property, and Trade
      Fixtures;

     

    (2)     Assessed,
      imposed, or levied against Landlord in relation to either Landlord’s interest in
      this Master Lease or the Rent and or other charges required under this Master
      Lease including, but not limited to, increases or additional, special, regular,
      unforeseen, foreseen, extraordinary, or ordinary, taxes and assessments, whether
      occurring wholly or partially during the Lease Term of the specific Leased
      Premises from which the taxes or assessments arise;

     

    (3)     Imposed
      against Landlord because of Landlord’s interest in this Master Lease as a
      substitute, in whole or in part, for a real estate tax or
      assessment.

    
      
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      CONFIDENTIAL
        TREATMENT REQUESTED FOR PORTIONS OF THIS DOCUMENT.  PORTIONS FOR WHICH
        CONFIDENTIAL TREATMENT IS REQUESTED ARE DENOTED WITH
        BRACKETS.

       

    

    C.     Tenant
      shall reimburse Landlord, upon demand, for any tax, assessment, or excise that
      was imposed, assessed, or levied against Landlord that Landlord paid but for
      which Tenant is primarily liable under this Master Lease.

     

    Article
      V

    Utilities

     

    
      	
              5.1

            	
              Utilities.  Unless
                otherwise agreed to in this Master Lease, Landlord shall pay for
                all
                public utilities furnished to the Leased Premises and shall reasonably
                cool, heat, and light and provide water and sanitary sewerage services
                to
                the building in which the Leased Premises is located.  Landlord
                is not liable for any interruption whatsoever to the public utilities,
                the
                lighting, the cooling, the heating, the water, or the sanitary sewerage
                services if any of the preceding are
                interrupted:

            

    

     

    A.     Due
      to equipment failure, fire, accident, strike, acts of God, or other causes
      beyond the reasonable control of Landlord; or

     

    B.     In
      connection with Store Renovations or to repair the Store or the Leased
      Premises.

     

    
      	
              5.2

            	
              Telephone
                Service.  Tenant shall pay for telephone service in the
                Leased Premises.  [***].

            

    

     

    Article
      VI

    Use
      and
      Operation

     

    
      	
              6.1

            	
              Use.  Tenant
                shall use the Leased Premises as designated in Paragraph 1 of Appendix-1,
                Permitted Uses, subject to applicable legal requirements, and for
                no other
                purpose without the prior, written consent of
                Landlord.

            

    

     

    
      	
              6.2

            	
              Continuous
                Operation.

            

    

     

    A.     Tenant,
      other than as expressly permitted by this Master Lease and during the applicable
      Lease Term, shall operate the applicable Leased Premises continuously during
      the
      Hours of Operation designated in Appendix-1 and in accordance with the Permitted
      Uses designated Appendix-1 and with the terms and provisions of this Master
      Lease.

     

    B.     Tenant,
      other than as expressly permitted by this Master Lease shall not vacate the
      applicable Leased Premises during the applicable Lease Term or cease operations
      in the applicable Leased Premises and shall conduct its business, at a minimum,
      in an efficient, first-rate, and reputable manner.

     

    C.     Other
      than closing the Leased Premises to repair, update, and upgrade the Trade
      Fixtures, the Improvements, and the Leased Premises in accordance with Section
      7.3B, below, Tenant may close the applicable Leased Premises for repair or
      renovation only with the prior, written consent of Landlord, which Landlord
      may
      not unreasonably withhold or delay.

     

    D.     Failure
      to comply with this provision or any representation by Tenant that during the
      applicable Lease Term the Tenant, or one of its Sublessees, will not comply
      with
      this provision or will vacate the applicable Leased Premises materially breaches
      this Master Lease.

     

    
      
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      CONFIDENTIAL
        TREATMENT REQUESTED FOR PORTIONS OF THIS DOCUMENT.  PORTIONS FOR WHICH
        CONFIDENTIAL TREATMENT IS REQUESTED ARE DENOTED WITH
        BRACKETS.

       

    

    
      	
              6.3

            	
              Hours
                of Operation.  Tenant, other than as expressly permitted by
                this Master Lease and during the applicable Lease Term, shall conduct
                its
                business in the Leased Premises as specified in Appendix-1 and, in
                accordance with Section 2.6, above, shall post its Hours of Operation
                in a
                conspicuous location within the Leased
                Premises.

            

    

     

    
      	
              6.4

            	
              Trade
                Name.  During the term of this Master Lease, Tenant shall
                conduct its business under the name designated as Tenant’s Trade Name in
                Appendix-1 and under no other name without the prior, written consent
                of
                Landlord.

            

    

     

    A.     Tenant
      acknowledges that Landlord relied on Tenant’s business reputation and associated
      trade name as a significant material inducement in Landlord’s decision to
      execute this Master Lease, and therefore, Tenant hereby warrants that Tenant
      has
      the right to use the trade name and all logos, trade dress, slogans, and all
      other identifying marks used by Tenant at the Leased Premises.

     

    B.     Failure
      to comply with this Section 6.4  is a material breach of this Master
      Lease.

     

    
      	
              6.5

            	
              Customer
                Service.

            

    

     

    A.     Tenant
      shall operate the Leased Premises in conformity with Landlord’s reputation as
      the operator of discount retail stores dedicated to customer satisfaction and
      prompt quality customer service featuring a broad assortment of quality
      merchandise at low, competitive prices.

     

    B.     Tenant,
      at its sole cost and expense, shall post, in a conspicuous location that
      customers can see when the Leased Premises is open and when the Leased Premises
      is closed, a telephone number and an address for customers to
      contact.  The telephone number must be either toll free or a number
      local to the applicable Leased Premises.

     

    
      	
              6.6

            	
              Window
                Display Lights.  Tenant shall keep, during the Hours of
                Operation, any display windows in the Leased Premises neat and
                attractive.

            

    

     

    
      	
              6.7

            	
              Mail
                & Deliveries.  Landlord does not guaranty any mail or
                deliveries to the Leased Premises and recommends Tenant arrange to
                receive
                mail or deliveries at an alternate location.  Any mail or
                deliveries to and from the Leased Premises must be done only at such
                times
                and in the areas and through the entrances designated for such purpose
                by
                Landlord.  Any mail or delivery left with the Store is done at
                the Tenant’s sole risk.  All property kept, stored, or
                maintained on the Leased Premises by Tenant is at Tenant’s sole
                risk.

            

    

     

    
      	
              6.8

            	
              Tenant’s
                Advertising, Promotion, and Media
                Inquiries.

            

    

     

    A.     Tenant
      may use Landlord’s name only to the extent Landlord’s Leasing Operations
      Department approves and only as a location reference.

     

    B.     Tenant
      may not promote its services within the Store using Landlord’s in-store public
      address system.

     

    C.     Tenant
      may not post any Signs outside of the Leased Premises, except as provided in
      Section 2.6B, above, or post any hand made signs inside or outside of the Leased
      Premises.

     

    D.     Tenant’s
      promotions related to the Leased Premises must be conducted in a professional
      manner by trained individuals.

     

    
      
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      CONFIDENTIAL
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        BRACKETS.

       

    

    E.     Tenant
      may not release or cause to be released any statement to the press or otherwise
      containing Landlord’s name or representing any relationship whatsoever to
      Landlord, without the prior, written approval of the Wal-Mart Leasing Operations
      Department.

     

    F.     Tenant
      agrees that it will not, within the Leased Premises or anywhere else in the
      Store, advertise, market, or promote any Competing Business.  For
      purposes of this paragraph, “Competing Business” means any retail business,
      owned or operated by either Tenant or a third party, involved in the sale,
      outside of the Store, of any products or services sold from within the Store
      or
      by any affiliate, parent company, or subsidiary of Landlord.

     

    
      	
              6.9

            	
              Restrictive
                Covenants.  Tenant shall comply with and observe any
                easement, covenant, or restriction that affects or applies to the
                Leased
                Premises and the Common Area.

            

    

     

    
      	
              6.10

            	
              Restrictions
                on Tenant’s Activities.  In addition to any easement,
                covenant, or restriction that affects or applies to the Leased Premises
                or
                the Common Area, Tenant, nor its Sublessees, shall
                not:

            

    

     

    A.     Use
      the sidewalk adjacent to or any other space outside the Leased Premises for
      display, sale, or any other similar undertaking.

     

    B.     Use
      a loudspeaker system that may be heard from outside the Leased Premises; place
      or permit any radio, television, loudspeaker, or amplifier on the roof, inside
      the Leased Premises, or anywhere that the radio, television, loudspeaker, or
      amplifier can be seen or heard from outside of the Leased Premises; or solicit
      or distribute any handbills or other advertising in the parking lot, Store,
      or
      Common Areas, unless otherwise protected by law.

     

    C.     Use
      the plumbing facilities of the Leased Premises or the Store for any purpose
      other than that for which they were constructed.  Neither Tenant or
      its Sublessees, nor the invitees of either Tenant or its Sublessees, may use
      the
      plumbing facilities of the Leased Premises to dispose of any foreign
      substances.  The expense of any breakage, stoppage, or damage
      resulting from a breach of this paragraph will be born by Tenant.

     

    D.     Place
      on any floor a load that exceeds the load per square foot that the floor was
      designed to carry.  Tenant may only install, operate, and maintain
      heavy equipment in the Leased Premises if installed in such manner as to achieve
      a proper distribution of weight.

     

    E.     Use
      any forklift truck, tow truck, or any other machine or equipment in the Store,
      in the Common Areas, or on any of the underlying ground, unless necessary to
      complete Tenant’s obligations under Section 2.4 or unless otherwise agreed to in
      the Appendix-1.

     

    F.     Use
      the Leased Premises to conduct illegal business or for illegal purposes or
      for
      any purpose that may increase the premium cost of or invalidate any insurance
      policy carried on the Leased Premises, Common Areas, or the Store.  If
      insurance premiums for insurance policies carried on the Leased Premises, Common
      Areas, or the Store increase in connection with Tenant’s use of the Leased
      Premises, Tenant will reimburse Landlord for the increase.

     

    G.     Unreasonably
      interfere with Landlord’s business or the business of another tenant of Landlord
      or act in such a way that reasonably may be expected to injure Landlord’s
      business relationship including, but not limited to, acting in any way which
      diminishes the access to or the

     

    
      
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        BRACKETS.

       

    

    visibility
      of any portion of the Store or any other tenant’s premises or that impedes the
      free circulation of customer traffic within the Store.

     

    H.     Receive,
      retain, or
      store in the Leased Premises any “Controlled Substances” except for any
      Controlled Substances included in an emergency medical kit.  For the
      purposes of this Master Lease, “controlled substances” means materials
      containing any quantity of a substance with a stimulant, depressant,
      hallucinogenic effect on the higher functions of the central nervous system,
      and
      having the tendency to promote abuse or physiological or psychological
      dependence, as designated in state and federal controlled substance schedules
      including, but not limited to, those listed in Schedules I through V of the
      Controlled Substances Act, 21 U.S.C. §812, as may be amended.  Failure
      to comply with this paragraph is a material breach.

     

    I.     Within
      the Leased Premises, receive, retain, store, or use any firearm, tear gas,
      mace,
      pepper spray, dye pack, or any item similar to a firearm, tear gas, or dye
      pack.

     

    
      	
              6.11

            	
              Encumbrances
                and Liens.  Tenant may not cause any encumbrance to attach
                to or upon the Leased Premises, the Store, the Common Area, the land
                underlying any of the foregoing, or Tenant’s interest in this Master Lease
                because of any act or omission of Tenant, its contractors, agents,
                employees, or representatives.  Failure to discharge any
                encumbrance within [***] days following its filing is a material
                breach.  In addition to any right or remedy Landlord may have
                for the material breach, Landlord may bond or pay the encumbrance
                for
                Tenant’s account without inquiring into the validity of the
                encumbrance.  If Landlord elects to pay the encumbrance, Tenant
                will reimburse Landlord, upon demand by Landlord, the amount Landlord
                paid, plus an additional [***] administrative fee, plus
                interest.  Interest will accrue at the lesser of [***] or the
                maximum amount allowed by law beginning on the day Landlord bonds
                or pays
                the encumbrance and continuing until Tenant reimburses Landlord the
                entire
                amount Landlord paid, plus the administrative fee and any interest
                accrued.

            

    

     

    Article
      VII

    Repairs
      & Maintenance

     

    
      	
              7.1

            	
              Repairs
                by Landlord.

            

    

     

    A.     Subject
      to the
      provisions of Section 11.1 (Casualty) and Article XII (Condemnation), Landlord
      shall maintain the Store and Leased Premises in good order and make all
      necessary repairs in the Leased Premises to the foundation, gutter, spouts,
      exterior walls, interior load-bearing walls, door, door closure devices,
      exterior openings, gates, and gate closure devices and to the roof and HVAC,
      except as provided below in Section 7.2, below.  Tenant shall notify
      Wal-Mart Maintenance of any necessary or requested repairs by calling the
Wal-Mart Maintenance Hotline at
[***].  Tenant must have the work order
      number provided by the Wal-Mart Maintenance Hotline at the time the repair
      is
      reported in order to check on the status of the repair.

     

    B.      Tenant
      shall reimburse Landlord for any repairs necessitated by the intentional acts
      or
      negligence of Tenant or Sublessee or the agents, customer, employee, or
      representative of either.  Any reimbursement required in the preceding
      sentence must be made no later than three (3) calendar days after Landlord
      demands reimbursement from Tenant.

     

    
      
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    C.     Landlord
      does not breach its obligations under Section 7.1A, above, until a reasonable
      amount of time passes after Tenant notifies Wal-Mart Maintenance, according
      to
      Section 7.1A, of the needed repair.  Rent will not abate during this
      time or while any repairs are being made, and Landlord will not be liable to
      Tenant or Sublessee due to loss or interruption of Tenant’s business because of
      the prosecution of the repair.

     

    
      	
              7.2

            	
              Tenant’s
                Repairs, Maintenance, Handling Hazardous
                Substances.

            

    

     

    A.     Tenant
      shall maintain the Leased Premises in compliance with applicable law and in
      good
      order and condition.  Tenant shall effect, according to applicable
      law, all repairs to the Leased Premises (except for those specifically
      enumerated in Section 7.1, above) that are commercially necessary or desirable
      to maintain the Leased Premises in a safe, dry, and tenantable condition
      including, without limitation, repairs to:

     

    (1)     Any
      portion of the pipes, lines, ducts, wires, or conduits, used solely by
      Tenant;

     

    (2)     Plate
      glass, windows, door frames, and special store fronts;

     

    (3)   
       Molding, locks and hardware, lighting, plumbing, Trade Fixtures, Signs,
      and interior painting and treatment; and

     

    (4)     Any
      Improvements or Trade Fixtures installed in the Leased Premises, including
      any
      roof-top heating, ventilation, or air conditioning unit or other rooftop
      equipment.  Any repairs to the roof-top heating, ventilating, and air
      conditioning unit or other rooftop equipment must be made by a Landlord approved
      contractor.

     

    B.     Tenant,
      at no expense to
      Landlord, shall handle, manage, store, transport, and dispose of all Hazardous
      Substances (as defined below) created by any process, action, or inaction in
      connection with the Leased Premises and in accordance with all applicable
      law.  [***].  Evidence of Tenant's compliance with all
      applicable laws concerning the use, handling, management, storage,
      transportation, and disposal of Hazardous Substances must be provided to
      Landlord on Landlord's request.  For the purpose of this Master Lease,
“Hazardous Substance” means:

     

    (1)     Hazardous
      material, hazardous waste, hazardous substance, toxic substance, biomedical
      waste, infectious waste, medical waste, or toxic waste identified by any federal
      or state law; chemical, dust, mixture, medical device, pharmaceutical, or common
      material capable of causing harm; or solid, liquid, contained gas, sludge,
      pollutant, asbestos, petroleum product, polychlorinated biphenyls, unused or
      returned consumer product, or other material, any of which, during the term
      of
      this Master Lease, become regulated as a hazardous material, hazardous waste,
      hazardous substance, toxic waste, or toxic substance; or

     

    (2)     Any
      solid, liquid, contained gas, sludge, pollutant, asbestos, polychlorinated
      biphenyls, or other material that, during the term of this Master Lease, becomes
      prohibited or requires special handling or treatment under any applicable law
      or
      regulation, including common law.

     

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    C.     Tenant,
      at no expense to Landlord, shall maintain the Leased Premises in a clean and
      sanitary condition, free from debris or excessive odor, and in compliance with
      all laws affecting the Leased Premises, Tenant’s use of the Leased Premises, or
      Tenant’s business.

     

    (1)     Tenant
      shall not allow the accumulation or burning of any rubbish or garbage in, on,
      or
      about the Leased Premises and shall keep all entrances, doors, or loading areas
      in the Leased Premises or immediately adjoining the Leased Premises free from
      trash, litter, or other obstruction.

     

    (2)     Tenant
      shall bear the expense of garbage and rubbish collection and
      disposal.  If Landlord’s Leasing Operations Department permits Tenant
      to use any part of the Store (other than the Leased Premises), Common Area,
      or
      land underlying the foregoing, to store garbage and refuse generated by Tenant’s
      use of the Leased Premises, Tenant and its Sublessees, at the expense of Tenant
      or its Sublessee, will keep all such garbage and refuse in the location
      designated by Landlord and in the kind of container, including the use of
      interior refrigerated garbage containers and compactors, Landlord
      specifies.

     

    (3)     Tenant
      will maintain air pressure in the Leased Premises necessary to keep offensive
      odors from emanating from the Leased Premises.

     

    (4)     Any
      odor producing function of Tenant’s operations must be mechanically vented to
      the exterior of the Store and the Leased Premises to eliminate the dissipation
      of such odors into the Store or into the interior or exterior of any other
      tenant’s space.  Exhaust hoods may not project above the roof deck
      higher than that allowed by local governmental authorities or code
      requirements.

     

    (5)     At
      Landlord’s written request, Tenant will install any equipment or procedures
      necessary to comply with Section 7.2C(3) and Section 7.2C(4).  If
      Tenant fails to comply with Landlord’s request, within [***] days after
      receiving notice, Landlord may take remedial action for Tenant, and Tenant
      will
      pay, as Additional Rent, the cost of such remedial action plus an administrative
      charge of [***] of the cost thereof.

     

    D.     If
      Tenant fails to pursue diligently any repairs required by this Section 7.2
      within [***] days of receiving notice from Landlord of the repair, Landlord
      may
      repair the Leased Premises as necessary to maintain it in a good, clean, safe,
      dry, and tenantable condition.  If Landlord makes such repair, Tenant
      will reimburse Landlord for its costs, plus an additional [***] administrative
      fee when Tenant pays the next months Rent.  Tenant will pay interest
      at the rate of [***] or the maximum rate allowed under law, whichever is less,
      for any amount unpaid after the next months Rent becomes due.

     

    
      	
              7.3

            	
              Store
                Renovation.

            

    

     

    A.     Landlord,
      from time to time, may relocate the Store to another physical
      address.  If Landlord relocates the Store to another physical address,
      Landlord, in its reasonable discretion, may terminate this Master Lease as
      to
      the applicable Leased Premises but will not be liable for any cost or expense
      of
      Tenant ceasing operations in the applicable Leased Premises.  Landlord
      and Tenant may enter into a new Attachment A for the new location of the Store
      or any other Store.  If Landlord and Tenant enter into a new
      Attachment A for the new location or the Store or any other Store, Tenant will
      bear all costs and expenses incurred in relocating to the new location
      of

     

    
      
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    the
      Store
      or to any other Store.  Tenant will also repair, update, and upgrade
      all Trade Fixtures and Improvements to the Leased Premises and ready the newly
      located Leased Premises to be open for business to the public for the Store’s
      grand opening as required by this Master Lease.  Landlord must first
      approve all repairs, updates, and upgrade to the Leased Premises.

     

    B.     Landlord,
      from time to time, may
      remodel, re-arrange, renovate, or expand (collectively and individually “Store
      Renovations”) the Store, without relocating the Store to another physical
      address.  During Store Renovations, Tenant will repair, update, and
      upgrade the Trade Fixtures, the Improvements, and the Leased Premises unless
      Tenant repaired, updated, and upgraded the Trade Fixtures, the Improvements,
      and
      the Leased Premises within the three (3) consecutive preceding
      years.  All repairs, updates, and upgrades Tenant contemplates must be
      previously approved by Landlord.

     

    (1)     Landlord
      may either temporarily or permanently relocate Tenant within the Store to
      another location within the Store that is of like size and configuration as
      the
      Leased Premises and is in a reasonable condition from which Tenant may operate
      if Landlord, in its sole discretion, determines the relocation necessary to
      complete Store Renovations.  Landlord will bear the cost of moving
      Tenant’s Trade Fixtures in the event of a temporary relocation, but Landlord is
      not responsible for any expense associated with Tenant’s repairs, updates, and
      upgrades of the relocated Leased Premises, whether the relocation is temporary
      or permanent. If the relocation is of a permanent nature and Tenant reasonably
      determines that the new location will materially impair its operations in the
      applicable Leased Premises or is not of like size and configuration as the
      original Leased Premises, Tenant may terminate this Master Lease as to the
      applicable Leased Premises.  If the relocation is temporary and Tenant
      reasonably determines that the new location of the Leased Premises will
      materially impair its business or that the Store Renovations are materially
      impairing its operations in the Leased Premises, Tenant may, with Landlord’s
      written consent, close the applicable Leased Premises until Landlord and Tenant
      agree that the Store Renovations no longer impair the operations of the
      applicable Leased Premises.

     

    (2)     If,
      in connection with the Store Renovations, Landlord closes the Store for more
      than three (3) consecutive days, Tenant may, with Landlord’s written consent,
      either close the applicable Leased Premises while the Store is closed in
      connection with the Store Renovations and conduct the repairs, updates, and
      upgrades of the Leased Premises as required by this Section 7.3B or terminate
      this Master Lease as to the applicable Leased Premises.

     

    C.     If
      the Leased Premises closes in accordance with this Section 7.3, Rent due during
      the time in which the Leased Premises is closed will abate.  The
      Leased Premises must re-open once the Store Renovations and the operations
      of
      the Leased Premises no longer materially impair each other, as determined by
      mutual agreement of the parties.

     

    Article
      VIII

    Compliance
      with Law and Other Requirements

     

    
      
        	
                8.1

              	
                Rules
                  and Regulations.  Tenant shall observe all rules and
                  regulations established from time to time by Landlord (as Landlord
                  may
                  adopt and publish in the Landlord/Tenant Handbook) including, but
                  not
                  limited to:

              

        
          
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    A.     [***].

     

    B.     Tenant
      and Sublessee,
      and any agent, employee, or representative of either Tenant or Sublessee, shall
      conduct him or herself while in the Store or in the Leased Premises in a
      professional and courteous manner, appropriately attired, trained, and groomed,
      and consistent with the first-class operations and facilities of
      Landlord.

     

    C.     Landlord’s
      procedures in responding to media inquiries as such inquiries relate to the
      Leased Premises, Landlord, or any relationship between Tenant and
      Landlord.

     

    
      	
              8.2

            	
              Compliance.

            

    

     

    A.     Tenant
      shall comply with all federal, state, and local laws, rules, orders, directives,
      and regulations pertaining to its operations within the Leased Premises
      including, but not limited to and as amended, the Age Discrimination in
      Employment Act of 1967, 29 U.S.C. §621, et seq.; the Americans with Disabilities
      Act of 1990, 42 U.S.C. §12101, et seq.; the Child Labor Act, 29 U.S.C. §212, et
      seq.; the Civil Rights Act of 1964, et seq.; the Economic Dislocation and Worker
      Adjustment Act, 29 U.S.C. §565, et seq.; the Employee Polygraph Act of 1988, 29
      U.S.C. §2001, et seq., the Equal Pay Act of 1963, 29 U.S.C. §201, et seq.; the
      Fair Labor Standards Act of 1938, 29 U.S.C. §201, et seq.; the Family and
      Medical Leave Act of 1993, 29 U.S.C. §2601, et seq.; the Immigration Reform and
      Control Act of 1986, 8 U.S.C. §1324a, et seq.; the Older Worker Benefit
      Protection Act, 29 U.S.C. §621, et seq.; and the Omnibus Budget Reconciliation
      Act of 1986, 29 U.S.C. §623, et seq.; and all other applicable laws, statutes,
      and regulations.

     

    
      
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    B.     Landlord
      has absolutely no
      responsibility, obligation, or liability for Tenant’s hiring and other
      employment practices.  Tenant warrants and represents that it has a
      policy to:

     

    (1)     Comply
      in all respects with all immigration laws and regulations;

     

    (2)     Properly
      maintain all records required by the United States Citizenship and Immigration
      Services (the "USCIS") including, without limitation, the completion and
      maintenance of the Form I-9 for each party's employees;

     

    (3)     Respond
      in a timely fashion to any inspection requests related to such I-9
      Forms;

     

    (4)     Cooperate
      fully in all respects with any audit, inquiry, inspection, or investigation
      the
      USCIS may conduct of such party or any of Tenant's employees;

     

    (5)     Conduct
      annual audit of the I-9 Forms for its employees; and

     

    (6)     Promptly
      correct any defects or deficiencies the audit reveals;

     

    (7)     Require
      all subcontractors performing any work for Tenant to comply with the covenants
      set forth in this Section 8.2B.

     

    C.     With
      respect to its business operations in the Leased Premises, Tenant shall comply
      with the Comprehensive Environmental Response, Compensation and Liability Act,
      the Superfund Amendment and Reauthorization Act, the Resource Conservation
      Recovery Act, the Federal Water Pollution Control Act, the Federal Environmental
      Pesticides Act, the Clean Water Act, any federal, state, or local “Superfund” or
“Super Lien” statute, or any other statute, law, ordinance, code, rule,
      regulation, order , or decree, including any amendments thereto, regulating,
      relating to, or imposing liability (including strict liability), or standards
      of
      conduct concerning any Hazardous Substance or any escape, seepage, leakage,
      spillage, emission discharge, or release of any Hazardous Substance or material
      resulting from Tenant’s use, handling, management, storage, transportation and
      disposal of any Hazardous Substance in, about, or under the Store.

     

    D.     Tenant
      shall comply with the provisions of the Americans with Disabilities Act (“ADA”)
      in complying with its obligations under this Master Lease.

     

    (1)     If,
      after Landlord delivers to Tenant the applicable Leased Premises, the presence
      of any ADA violation on the applicable Leased Premises requires remedial work
      on
      the Leased Premises, Tenant will promptly take all actions at its sole expense
      as are required by any federal, state, or local government agency or political
      subdivision to comply with the ADA; provided that Landlord's consent to such
      actions is first obtained, which consent Landlord may not unreasonably withhold
      or delay.

     

    (2)     In
      addition to Tenant’s obligations under Article XIII, Tenant shall indemnify,
      defend and hold harmless the Indemnitees from any Claim including, without
      limitation, diminution in value of the Leased Premises, damages for the loss
      or
      restriction of use of rentable or usable space or of any amenity of the Leased
      Premises, damages arising from any adverse impact on marketing of space of
      the
      Leased Premises, and sums paid in settlement of claims, attorney's fees,
      consultation fees and expert fees arising during or after the applicable Lease
      Term as a result of such violation.  Tenant’s obligations in the
      preceding sentence include, without limitation, costs incurred in connection
      with any investigation of site conditions or

    
      
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    any
      remedial work required by any federal, state, or local government agency or
      political subdivision because of any ADA violation present on or about the
      Leased Premises.

     

    E.     Tenant
      represents and warrants that neither it nor its Sublessees are:

     

    (1)     A
      person or entity designated by the U.S. Government on the list of the Specially
      Designated Nationals and Blocked Persons (the “SDN List”), as maintained by the
      U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) at
      http://www.ustreas.gov/offices/enforcement/ofac/sdn, with which a U.S. person
      or
      entity cannot deal with or otherwise engage in business
      transactions;

     

    (2)     A
      person or entity who is otherwise the target of U.S. economic sanctions and
      trade embargoes enforced and administered by OFAC, such that a U.S. person
      or
      entity cannot deal or otherwise engage in business transactions with such Tenant
      or its Sublessees;

     

    (3)     Either
      wholly or partly owned or wholly or partly controlled by any person or entity
      on
      the SDN List, including without limitation by virtue of such person being a
      director or owning voting shares or interests in an entity on the SDN
      List;

     

    (4)     A
      person or entity acting, directly or indirectly, for or on behalf of any person
      or entity on the SDN List; or

     

    (5)     A
      person or entity acting, directly or indirectly, for or on behalf of a foreign
      government that is the target of the OFAC sanctions regulations such that the
      entry into this Master Lease would be prohibited under U.S. law.

     

    F.     [***].

     

    G.     Tenant
      shall maintain the warranties and representations Tenant made under this Master
      Lease, all of which are remade and reaffirmed by Tenant when signing each new
      Attachment A, in full force and effect throughout the term of this Master
      Lease.

     

    H.     Any
      failure by Tenant to comply with its obligations under this Section 8.2 is
      a
      material breach.

     

    
      	
              8.3

            	
              Landlord’s
                Right of Removal.  Landlord, in its sole judgment and
                discretion, may deny entry to or remove from its premises any Tenant
                or
                Sublessee, or any agent, employee, or representative of either Tenant
                or
                Sublessee, who violates any of Landlord’s rules or
                regulations.

            

    

     

    Article
      IX

    Right
      to
      Access & Common Areas

    
      
        
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              9.1

            	
              Landlord’s
                Right to Access.  Landlord may enter the Leased
                Premises:

            

    

     

    A.     Without
      notice to either inspect the Leased Premises, enforce any of Landlord’s rules
      and regulations, enforce a provision of this Master Lease or in case of an
      emergency;

     

    B.     Upon
      reasonable notice to Tenant, either to affect repairs it is obligated to perform
      or to add, alter, improve, repair, or otherwise construct or maintain any part
      of the Store adjacent to the Leased Premises; and

     

    C.     With
      twenty four (24) hours advance notice to Tenant to show the Leased Premises
      to a
      prospective lender, lessee, or purchaser.

     

    
      	
              9.2

            	
              “For
                Rent” or “For Lease”.  Landlord may post “For Rent” or “For
                Lease” signs on the Leased Premises during the last ninety (90) days of
                the Leased Term if, in accordance with  this Master Lease,
                Landlord and Tenant do not extend the Lease
                Term.

            

    

     

    
      	
              9.3

            	
              Tenant’s
                Right to Access.

            

    

     

    A.     Tenant,
      its Sublessee, and the agent, customer, employee, or representative of each,
      has
      a limited right, during the Hours of Operation listed in Appendix-1, to enter
      upon the Common Areas of the Store in order to conduct business in the Leased
      Premises.

     

    B.     Except
      as set forth in Article II and Article VII, Tenant has no rights or obligations
      related to the rooftop of the Leased Premises.

     

    C.     Tenant,
      with Landlord’s prior consent, may enter Landlord’s property for the limited
      purpose of servicing, maintaining, and otherwise performing its obligations
      in
      connection with this Master Lease at times the Store is not open to the public
      for business if Tenant, in no way, provides its services to the public during
      that time.

     

    
      	
              9.4

            	
              Parking.  Tenant,
                its Sublessee, and the agents, employees, and representatives of
                each,
                while working in the Leased Premises, may park their motor vehicles
                in
                spaces designated by Landlord.  Landlord may tow or cause to be
                towed, at the expense of the owner of the motor vehicle, any motor
                vehicle
                owned by Tenant, its Sublessee, or the agents, employees, and
                representatives of each, that is parked in any area of Landlord’s property
                other than the parking area
                designated.

            

    

     

    
      	
              9.5

            	
              Landlord’s
                Liability.  If Landlord enters the Leased Premises according
                to the provisions of this Master Lease, Landlord is not liable to
                Tenant
                for any loss, liability, or damages resulting from Landlord’s
                entry.  If Landlord enters the Leased Premises during the Hours
                of Operation, Landlord will use commercially reasonable efforts not
                to
                interfere with Tenant’s business, and Landlord will not be liable to
                Tenant for any loss, including lost profits, for any resulting business
                interruption.

            

    

     

    
      	
              9.6

            	
              Common
                Areas.  Despite the preceding Sections, Landlord may close
                or prohibit the use of any Common Area, in part or in whole; may
                change
                the location or appearance of the Common Area; or may erect additional
                structures in the Common Area.

            

    

     

    Article
      X

    Transfer
      of Interest, Subordination, Attornment

     

    
      
        
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              10.1

            	
              Transfer
                of Tenant’s Interest.  For the purposes of this Master
                Lease, “Affiliate” means a corporation related to Tenant by shareholdings
                or any other means of control; a subsidiary of Tenant; Tenant’s parent
                company; or a sibling company of Tenant.  Except to an Affiliate
                known to Landlord at the time Landlord signs this Master Lease
                Agreement:

            

    

     

    A.     Tenant
      may not, without the prior, written consent of Landlord, which Landlord will
      not
      unreasonably withhold:

     

    (1)     Transfer,
      encumber, or pledge (collectively and individually, “Transfer”) its interest in
      this Master Lease, either in its entirety or as to a particular Leased Premises,
      or an applicable Leased Premises;

     

    (2)     Permit
      any Transfer or interest of this Master Lease by operation of law;

     

    (3)     Permit
      any person or entity other than Tenant to use the Leased Premises;
      or

     

    (4)     Cause
      or permit Tenant’s dissolution, merger, or consolidation, unless Tenant is
      merging or consolidating with an Affiliate.

     

    B.    
      Tenant shall notify Landlord, in writing, prior to or simultaneously
      with, a public announcement of the Transfer within any twelve (12) month period
      of either more than an aggregate of fifty percent (50%) of Tenant’s voting
      shares or more than fifty percent (50%) of the value of Tenant’s unencumbered
      assets (as of the date of the Transfer); or the Transfer of any part or all
      of
      its shares of stock resulting in a change in Tenant’s present effective voting
      control by the person owning a majority of said shares of stock on the day
      Tenant signs this Master Lease.  If a Transfer occurs, Landlord, in
      its sole discretion, may terminate this Master Lease in its entirety by
      providing written notice to Tenant within ninety (90) days following receipt
      by
      Landlord of Tenant’s notice as required above.  Tenant’s failure to
      provide Landlord notice as required above constitutes a material breach of
      this
      Master Lease.

     

    
      	
              10.2

            	
              Effect
                of Unauthorized Transfer.  Subject to the exceptions in
                Section 10.1, any Transfer or attempted Transfer without Landlord’s prior,
                written consent will be void and will not confer any rights upon
                any third
                person.

            

    

     

    
      	
              10.3

            	
              Requesting
                Landlord’s Consent.

            

    

     

    A.     Any
      request for Landlord’s consent pursuant to this Article X must be in writing and
      include:

     

    (1)     The
      proposed effective date of the Transfer, which should not be less than [***]
      days nor more than [***] days in advance of the notice;

     

    (2)     All
      of the terms, including the consideration, of the proposed Transfer, the name
      and address of the proposed transferee, and a copy of all documentation
      pertaining to the proposed Transfer; and

     

    (3)     The
      current audited financial statements of the proposed transferee or any other
      financial statements that would enable Landlord to determine the financial
      responsibility, character, and reputation of the proposed
      transferee.

     

    B.     Tenant
      shall provide any additional information Landlord requests in connection with
      the proposed Transfer.

     

    
      
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              10.4

            	
              Effect
                of Consent.

            

    

     

    A.     If
      Landlord consents to any Transfer, that consent is not effective until and
      unless:

     

    (1)     Landlord
      receives a copy of the assignment affecting the Transfer and

     

    (2)     The
      transferee delivers to Landlord a written agreement, in form and substance
      satisfactory to Landlord, by which the transferee assumes all of the obligations
      and liabilities of Tenant under this Master Lease.

    
B.     Any
      consent by Landlord to a Transfer does not constitute a waiver by Landlord
      of
      any prohibition against any future Transfers.

     

    C.     No
      Transfer relieves Tenant of any obligations under this Master
      Lease.

     

    
      	
              10.5

            	
              Transfer
                Premium.

            

    

     

    A.     For
      the purposes of this provision, “Transfer Premium” means all Rent or other
      consideration payable by the Transferee in any monthly period that is in excess
      of the Rent payable by Tenant under this Master Lease in the same monthly
      period.

     

    B.     Tenant
      promptly, without notice or demand, shall pay Landlord [***] of any Transfer
      Premium Tenant receives in connection with a Transfer.

     

    C.     Tenant
      shall pay Landlord, in a form satisfactory to Landlord, any part of the Transfer
      Premium Tenant receives in a non-cash form.

     

    D.     In
      lieu of accepting any payment from Tenant of a Transfer Premium, Landlord may
      elect, with ninety (90) days written notice, to increase the Rent due under
      this
      Master Lease as to the transferred Leased Premises by an amount equal to
      Landlord’s share of the monthly amount of the Transfer Premium.

     

    E.    
      Landlord and its authorized representatives have the right to conduct an audit,
      relating to any Transfer Premium, of Tenant at Tenant’s place of business during
      Tenant’s regular work hours and with reasonable notice.  If the audit
      establishes that Tenant underpaid Landlord Landlord’s percentage of the Transfer
      Premium, Tenant, within thirty (30) days following receipt of written demand,
      will pay the deficiency and Landlord’s costs of such audit.  If the
      deficiency is greater than [***], Landlord may terminate this Master Lease
      as to
      the transferred Leased Premises.  If the audit establishes that Tenant
      overpaid Landlord Landlord’s percentage of the Transfer Premium, Landlord,
      within thirty (30) days following receipt of written demand by Tenant, will
      pay
      the overage.

     

    F.      This
      provision does not apply to:

     

     (1)     Any
      Transfer between Affiliates,

     

     (2)     Payments
      made by a transferee for Tenant’s customer deposits, or

     

     (3)     Tenant’s
      furniture, fixtures, and equipment.

     

    
      	
              10.6

            	
              Transfer
                of Landlord’s Interest.

            

      
        
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    A.     Landlord
      may Transfer all or a part of its interest in the Store, the Common Areas,
      or
      the Leased Premises to a parent, subsidiary, or affiliated corporation of
      Landlord without prior consent or notice to Tenant.

     

    B.     If
      Landlord Transfers its interest in this Master Lease as to a Leased Premises
      and
      the transferee assumes all of Landlord’s future obligations under this Master
      Lease, Landlord will be released from any further obligations under this Master
      Lease as to the transferred interest.  Tenant agrees to look solely to
      Landlord’s transferee for performance of obligations under this Master
      Lease.  Landlord will transfer to the transferee any security given by
      Tenant according to Section 4.6, and Landlord will be discharged from any
      further obligation relating to the security.

     

    
      	
              10.7

            	
              Subordination.  Landlord
                may elect that this Master Lease, as to a particular Leased Premises,
                be
                subordinate to or paramount to the lien of any
                mortgage.  Landlord’s right to elect is self-operative, and no
                further instrument will be required.  If Landlord requests,
                Tenant will do one or both of the
                following:

            

    

     

    A.     Confirm
      in writing and in a recordable form that this Master Lease, as to a particular
      Leased Premises, is subordinate to or paramount to (as Landlord elects) the
      lien
      of any mortgage; and

     

    B.     Execute
      an instrument making this Master Lease, as to the particular Leased Premises,
      subordinate or paramount (as Landlord may elect) to the lien of any mortgage,
      in
      a form as may be required by any applicable mortgagee.

     

    
      	
              10.8

            	
              Attornment.  Tenant
                may not disaffirm any of its obligations under this Master Lease
                if
                Landlord Transfers the Store or a particular Leased Premises to a
                successor.  Tenant will attorn to and be bound by the terms,
                covenants, and conditions of this Master Lease as to the affected
                Leased
                Premises for the balance of the Lease
                Term.

            

    

     

    Article
      XI

    Casualty

     

    
      	
              11.1

            	
              Fire
                or Other Casualty.  Tenant shall promptly notify Landlord,
                in writing, of any damage caused to a Leased Premises by
                casualty.

            

    

     

    
      	
              11.2

            	
              Election
                to Rebuild.

            

    

     

    A.     Landlord
      may elect to repair and
      restore structural damage to a Leased Premises damaged by casualty and shall
      notify Tenant, in writing and within at least sixty (60) days after Landlord
      receives notice of the casualty damage, of its election.

     

    B.     If
      Landlord does not elect to repair and restore structural damage to a Leased
      Premises damaged by casualty, this Master Lease as to the applicable Leased
      Premises will terminate.

     

    C.     If
      Landlord elects to repair the structural damage to a Leased Premises damaged
      by
      casualty, Landlord, after notifying Tenant of its election, will diligently
      undertake the appropriate measures necessary to complete the repairs to the
      applicable Leased Premises in a commercially reasonable amount of
      time.  Landlord will return the applicable Leased Premises to Tenant
      in substantially the same condition the applicable Leased Premises was in on
      the
      Delivery Date.  Tenant will then complete the build-out of the
      applicable Leased Premises with commercially

     

    
      
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    reasonable
      diligence and return the applicable Leased Premises to substantially the same
      condition the applicable Leased Premises was in immediately prior to the
      casualty.

     

    
      	
              11.3

            	
              Rent
                Abatement.  If Landlord elects to repair the structural
                damage to a Leased Premises damaged by casualty, Landlord may abate
                Rent
                due on the applicable Leased Premises to the extent that
                the:

            

    

     

    A.    Applicable
      Leased Premises is closed for repair, or

     

    B.     Tenant’s
      operations within the Leased Premises are impaired by the structural damage
      and
      subsequent repairs. 

     

    Article
      XII

    Condemnation
      & Eminent Domain

     

    
      	
              12.1

            	
              Total
                or Substantial Taking.  If a Taking of a Leased Premises, or
                a Store in which exists a Leased Premises, occurs, this Master Lease
                as to
                the applicable Leased Premises will terminate automatically as of
                the date
                of the Taking.  For purposes of this Master Lease, “Taking”
                means any government action that deprives, directly interferes with,
                or
                substantially disturbs the use and enjoyment of the Leased Premises,
                any
                of which may occur because of either the exercise of the power of
                eminent
                domain or condemnation or resulting from a purchase in lieu
                thereof.

            

    

     

    
      	
              12.2

            	
              Partial
                Taking.  If a Taking of only a portion of the Leased
                Premises, or of a Store in which exists a Leased Premises, occurs,
                Landlord may either:

            

    

     

    A.     Terminate
      this Master Lease, without liability, as to the applicable Leased Premises;
      or

     

    B.     Reduce
      the Base Rent in proportion to the area of the Leased Premises affected by
      the
      Taking until such time that portion of the Store or the Leased Premises is
      restored.

     

    
      	
              12.3

            	
              Temporary
                Use.  If a Taking of the Leased Premises occurs for
                temporary use, this Master Lease will continue in full force and
                effect as
                to the applicable Leased Premises.  Tenant will continue to
                comply with its obligations under this Master Lease, and any appendix,
                amendment, or attachment hereto, to the extent compliance is possible
                because of the Taking for temporary use.  If during the
                temporary Taking, Tenant is unable, based on a commercially reasonable
                standard, to operate its business from the Leased Premises such that
                Tenant reasonably is unable to open the Leased Premises for business,
                Landlord will reduce Tenant’s Rent in proportion with the number of days
                the Leased Premises is closed during the temporary
                Taking.

            

    

     

    
      	
              12.4

            	
              Compensation.  Any
                compensation arising out of the Taking of a Leased Premises belongs
                to and
                is the property of Landlord without any participation by
                Tenant.  Tenant hereby assigns to Landlord any share of any
                compensation arising out of the Taking of a Leased Premises that
                may be
                awarded to Tenant and waives any rights it may have with respect
                to the
                loss of its leasehold
                estate.  

            

    

     

    Article
      XIII

    Indemnity
      and Liability

     

    
      	
              13.1

            	
              Definitions.  For
                the purposes of this Master Lease:

            

    

     

    A.   
      “Claim” means any action, cause of action, claim, or any other assertion of a
      legal right; damages including, but not limited to, consequential, future,
      incidental, liquidated, special, and

     

    
      
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    punitive
      damages; diminution in value; fines; judgments; liabilities; losses including,
      but not limited to, economic loss and lost profits; and regulatory actions,
      sanctions, or settlement payments.

     

    B.      “Indemnitee”
      means:

     

    (1)     Landlord,
      its subsidiaries, affiliates, officers, directors, employees, agents,
      and

     

    (2)     Any
      lessor of Landlord or other party to an agreement with Landlord related to
      Landlord’s purchase or lease or use of the Store or the underlying land, which
      Landlord has a contractual obligation to indemnify for Claims in connection
      with
      the Store or the Leased Premises.

     

    C.      “Indemnified
      Claim” means a Claim for which Tenant is obligated to indemnify, defend, and
      hold harmless the Indemnitees according to Section 13.2, below.

     

    
      	
              13.2

            	
              Indemnification.  Tenant
                shall indemnify, defend, and hold harmless the Indemnitees against
                any
                Claim, even if the Claim is  groundless, fraudulent, false, or
                raised or asserted by a third party, including a government entity,
                in
                connection with or resulting from:

            

    

     

    A.     Any
      actual or
      alleged breach of this Master Lease by Tenant or Sublessee, or any agent,
      employee, or representative of either Tenant or Sublessee;

     

    B.     Any
      actual or alleged negligence or willful misconduct by Tenant or Sublessees,
      or
      their respective agents, employees, representatives, subcontractors, or
      customers, at or related to the Leased Premises;

     

    C.     An
      investigation of the Indemnitees concerning the alleged improper management,
      handling, storage, disposal, or transportation of Hazardous Substances, any
      of
      which Tenant is responsible for under this Master Lease and the actual or
      alleged improper use, handling, management, storage, transportation, and
      disposal of Hazardous Substances by Tenant, Sublessee, or any agent, employee,
      or representative of either Tenant or Sublessee; and

     

    D.     Indemnitees
      actual or alleged passive negligence, secondary liability, vicarious liability,
      strict liability, or breach of a statutory or non-delegable duty, related,
      directly or indirectly, to any matter covered under Section 13.2 of this Master
      Lease.

     

    
      	
              13.3

            	
              Scope
                of Indemnity.  Tenant’s obligations under this Article
                XIII:

            

    

     

    A.     Is
      independent of, and not limited by, any of Tenant’s obligations under Article
      XIV, below, even if damages or benefits are payable under worker’s compensation
      or other statutes or if Tenant breaches its obligations under Article XIV,
      below.

     

    B.     Survive
      the termination or expiration of this Master Lease until applicable law fully
      and finally bars all Claims against the Indemnitee.  ALL OBLIGATIONS
      UNDER THIS ARTICLE XIII WILL BE ENFORCED TO THE FULLEST EXTENT PERMITTED BY
      APPLICABLE LAW FOR THE BENEFIT OF THE INDEMNITEES. In the event that applicable
      law affects the validity or enforceability of this Article XIII, that applicable
      law will operate to amend this Article XIII to the minimum extent necessary
      to
      bring the provisions of this Article XIII into conformity with the applicable
      law.  This Article XIII, as modified, will continue in full force and
      effect.

     

    
      
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      BRACKETS.

    C.     Applies
      unless and until a final judicial decision, from which there is no further
      right
      to appeal, determined that the Indemnitee is not entitled to be indemnified,
      defended, and held harmless under this Agreement.

     

    
      	
              13.4

            	
              Defense
                of Claim.

            

    

     

    A.     On
      receiving notice, from whatever source, of the Indemnified Claim, Tenant
      shall:

     

    (1)     Promptly
      notify Landlord of the assertion, filing, or service of any Indemnified Claim
      of
      which Tenant becomes aware; and

     

    (2)     Immediately
      take all appropriate actions necessary to protect and defend the Indemnitees
      regarding the Indemnified Claim.

     

    B.     Tenant
      shall cause the counsel engaged to defend the Indemnitees with respect to the
      Indemnified Claim to acknowledge receipt of, to accept, and to represent
      Indemnitees’ interest regarding the Indemnified Claim in accordance with
“Wal-Mart’s Indemnity Counsel Guidelines.”

     

    C.     If,
      in its sole discretion, the Indemnitees determine that a conflict of interest
      exists between the Indemnitees and the indemnifying counsel or that the
      indemnifying counsel is not pursuing a defense for the Indemnitees that is
      in
      the Indemnitees’ best interests, the Indemnitees may request Tenant replace the
      indemnifying counsel.

     

    (1)     Tenant
      shall not unreasonably withhold its consent to replace the indemnifying counsel
      and will replace the indemnifying counsel timely or cause the indemnifying
      counsel to be replaced timely.

     

    (2)    
      If Tenant unreasonably withholds consent or the indemnifying counsel is not
      timely replaced after the Indemnitees requested, the Indemnitees may replace
      the
      indemnifying counsel, and Tenant will reimburse the Indemnitees any costs
      incurred by the Indemnitees in replacing the counsel.

     

    
      	
              13.5

            	
              Waiver.  Tenant
                waives any right, at law or in equity, to indemnity or contribution
                from
                the Indemnitees.

            

    

     

    
      	
              13.6

            	
              Non-liability
                of Landlord and Tenant.

            

    

     

    A.     Landlord
      will not be liable to Tenant or Sublessee, or any agent, employee,
      representative, or customer of Tenant or Sublessee, and Tenant will not be
      liable to Landlord, for any Claim relating to the negligence or willful
      misconduct of any of Landlord’s customers, invitees, or other lessees or
      sublessees or any customers or invitees of Landlord’s other lessee and
      sublessees.

     

    B.    
      Landlord will not be liable to Tenant for any Claim relating to the condition
      of
      the Store, the Common Areas, or the Leased Premises in connection with disrepair
      or defect in any:

     

    (1)     Structural
      element of the Leased Premises;

     

    (2)     Trade
      Fixtures, Improvements, wiring, or any of Tenant’s installations;

     

    (3)     Back
      up of drains constructed or installed by Tenant; or

    
      
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    (4)     Gas,
      water, steam, electricity, grease, or oil, leaking, escaping, or flowing, from
      any equipment, pipes, drains, wiring, Trade Fixtures, or Improvements installed
      or maintained by Tenant.

     

    
      	
              13.7

            	
              Breach
                of Article XIII.  Any failure by Tenant to comply with this
                Article XIII is a material breach of this Master Lease, which does
                not
                relieve Tenant of its obligations under this Article
                XIII.

            

    

     

    Article
      XIV

    Insurance

     

    
      	
              14.1

            	
              Insurance
                Required.  Tenant shall procure and maintain, at Tenant's
                own expense, the insurance policies described in the attached
                Appendix-2.  All insurance policies required by this Master
                Lease must be obtained from an insurance company with a rating of
                A+ or
                better and a financial Size Category rating of VII or better as rated
                in
                the A.M. Best Key Rating Guide for Property and Casualty Insurance
                Companies (“Insurer”), unless self-insured as discussed in Section 14.3,
                below.

            

    

     

    
      	
              14.2

            	
              Requirements.

            

    

     

    A.     Tenant
      and its Sublessees bear the responsibility of insuring for fire and all risks,
      including risk of flood, earthquake, and terrorism, associated with the
      merchandise, Trade Fixtures, and Improvements related to the operation of the
      Leased Premises.  At no time is Landlord liable for any Damage or
      Injury to Tenant’s business property, Improvements, betterments, or Trade
      Fixtures within any of the Leased Premises due to fire or any other risk covered
      under a Causes of Loss – Special Form insurance policy or due to flood,
      earthquake, or terrorism.

     

    B.     Tenant
      shall submit to Landlord a
      Certificate of Insurance for each insurance policy required under this Article
      XIV and the attached Appendix-2  naming “Wal-Mart Stores, Inc.,
      Attn:  Asset Management, [***]” as the Certificate
      Holder.  Additionally, each Certificate of Insurance
      must:

     

    (1)     Be
      submitted to Landlord at the address provided in the preceding
      sentence;

     

    (2)     Show
      the name and address of the Insurer;

     

    (3)     Show
      the policy number and date(s) of coverage for each policy procured by Tenant
      in
      satisfaction of its obligations under this Master Lease;

     

    (4)     Include
      the name, address, telephone number, and signature of the authorized person
      providing the Certificate of Insurance;

     

    (5)     Verify
      the insurance coverage required in this Article XIV and the
      Appendix-2;

     

    (6)     Where
      permitted by law, list as Additional Insureds Wal-Mart Stores, Inc., its
      Subsidiaries and its Affiliates, and the directors, officers, shareholders,
      employees, agents, and representatives, and the respective successors and
      assigns of each,  and any party that Landlord has a contractual
      obligation to indemnify in relation to Tenant’s use of the applicable Leased
      Premises;

     

    (7)     Verify
      that Insurer waives subrogation in favor of Landlord and Landlord’s affiliates
      and subsidiaries;

    
      
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    (8)     Verify
      the insurance policies are primary, non-contributory, and not in excess of
      any
      insurance the Additional Insured has available to it; and

     

    (9)     Where
      permitted by law, provide coverage for punitive damages.

     

    
      	
               14.3

            	
              Self-Insured.

            

    

     

    A.     Landlord
      may accept self-insurance in lieu of the insurance policies set forth in this
      Article XIV and the attached Appendix-2 if Tenant provides to
      Landlord

     

    (1)     A
      copy of the
      Certificate of Authority to Self-Insure its Worker’s Compensation obligations
      issued by the state(s) in which the Leased Premises will be located and a copy
      of the state-issued letter approving self-insurance for automobile liability,
      if
      required under this Master Lease;

     

    (2)     Proof
      that Tenant’s net worth is at least ten (10) times the amount of Commercial
      General Liability insurance required by this Master Lease; and

     

    (3)     A
      copy of Tenant’s
      most recently audited annual financial statements, with no negative notes,
      or
      the most recent Dun and Bradstreet report.

     

    B.     If
      Landlord accepts self-insurance in lieu of the insurance policies set forth
      in
      this Article XIV and the attached Appendix-2, Tenant hereby agrees to the
      obligations of any endorsement or Certificate of Insurance required under
      Section 14.2, above, and that may be required under any appendix, amendment,
      or
      attachment hereto.  Such obligations become Tenant’s obligations under
      this Master Lease.

     

    
      	
              14.4

            	
              Mutual
                Waiver of Subrogation.  Landlord and Tenant each hereby
                release the other from all liability or responsibility to the other
                or to
                any other party claiming through or under them by way of subrogation
                or
                otherwise or for any loss or damage to property caused by casualty
                that is
                customarily insured under a Causes of Loss – Special Form insurance policy
                or that is due to flood, earthquake, or terrorism.  This mutual
                waiver applies only to Damage or Injury to Tenant’s business property,
                Improvements, betterments, or Trade Fixtures within any of the Leased
                Premises occurring during the time when Tenant’s business property,
                Improvements, betterments, or Trade Fixtures within any of the Leased
                Premises are covered under a Causes of Loss – Special Form insurance
                policy or are due to flood, earthquake, or terrorism for which Tenant
                has
                insurance coverage.

            

    

     

    
      	
              14.5

            	
              Breach.  Failure
                to procure and maintain the insurance required under this Article
                XIV and
                the attached Appendix-2 constitutes a material breach of this Master
                Lease.  Tenant shall indemnify, defend, and hold harmless the
                Indemnitee against Indemnified Claim that the required insurance
                would
                have covered but for Tenant’s
                breach.

            

    

     

    
      	
              14.6

            	
              Insurance
                Obligation is in Addition to Other Obligations.  Tenant’s
                obligations under this Article XIV and the attached Appendix-2 are
                in
                addition to, not in lieu of, Tenant’s other obligations, including
                Tenant’s obligations under Article XIII, to Landlord under this Master
                Lease.

            

    

     

    Article
      XV

    Confidentiality

     

    
      
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              15.1

            	
              The
                terms and provisions of this Master Lease affect present and future
                negotiations Landlord or Tenant may have with another party.  As
                such, Landlord and Tenant, and the agents, employees, and representatives
                of each, shall each keep confidential, disclosing only such information
                as
                is required by law or by mutual, written agreement between Landlord
                and
                Tenant.

            

    

     

    
      	
              15.2

            	
              Tenant
                shall not disclose any information that Landlord may mark as confidential
                or proprietary including, but not limited to, lists of available
                rental
                space and marketing plans or schedules that Landlord may make available
                or
                known to Tenant, disclosing only such information as is required
                by law or
                by mutual, written agreement between Landlord and
                Tenant.

            

    

     

    
      	
              15.3

            	
              Failure
                to comply with this Article XV is a material breach of this Master
                Lease.

            

    

     

    Article
      XVI

    Covenant
      of Quiet Enjoyment

     

    
      	
              16.1

            	
              Landlord
                covenants that Tenant peaceably and quietly may enjoy the Leased
                Premises
                in accordance with, and subject to, the terms of this Master Lease
                and
                without any interruption or disturbance from Landlord, provided
                Tenant:

            

    

     

    A.     Pays
      Rent and all other charges provided for in this Master Lease and any appendix,
      amendment, or attachment hereto,

     

    B.     Performs
      all of its obligations provided for under this Master Lease, and

     

    C.     Observes
      all of the other provisions of this Master Lease.

     

    Article
      XVII

    Default,
      Termination, Surrender, Tenant’s Liability, Right of Reentry

    Tenant’s
      Waivers, Landlord’s Right to Perform, Cumulative Rights

     

    
      	
              17.1

            	
              Default.  Each
                of the following events constitutes a Default of this Master
                Lease:

            

    

     

    A.     Tenant
      files for Insolvency or is adjudicated Insolvent.  For the purposes of
      this Master Lease, “Insolvency” means any petition filed by Tenant in
      bankruptcy, for reorganization or arrangement, or for appointment of a receiver
      or trustee; Tenant acquiescing to a petition for bankruptcy, reorganization,
      arrangement, or the appointment of a receiver or trustee by a creditor; or
      any
      assignment by Tenant for the benefit of a creditor.

     

    B.     A
      petition for Insolvency is filed against Tenant, to which Tenant does not
      acquiesce, and that, within five (5) days following the filing, is not
      dismissed, discontinued, or vacated;

     

    C.     Tenant’s
      interest in this Master Lease, in its entirety or as to a particular Leased
      Premises is assigned by operation of law;

     

    D.     Tenant
      fails to pay any
      installment of Rent or any other charge to which Tenant is obligated by this
      Master Lease to pay when due and payable, and the failure to pay continues
      for
      more than ten (10) days and such failure occurs more than two (2) times in
      a
      calendar year; or

     

    E.     Tenant
      breaches any material obligation or covenant under this Master
      Lease.

     

    
      
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    F.     Tenant
      breaches any non-material obligation or covenant under this Master Lease more
      than two (2) times in a calendar year, and each breach remains uncured ten
      (10)
      days after Tenant receives written or verbal notice of the breach from
      Landlord.

     

    G.     After
      the Rent Commencement Date, Tenant fails to open the applicable Leased Premises
      according to the Hours of Operation designated in Appendix-1 two (2) or more
      times in a calendar year, without Landlord’s prior, written approval or as
      otherwise allowed under this Master Lease.

     

    
      	
              17.2

            	
              Termination
                for Default.  Landlord may terminate this Master Lease, in
                its entirety or as to a particular Leased Premises, without any liability,
                if Tenant Defaults, as defined in Section 17.1, above, or elsewhere
                in
                this Master Lease, by written notice to Tenant.  However,
                Landlord may wait to terminate this Master Lease, in its entirety
                or as to
                a particular Leased Premises, until after it re-lets the Leased Premises
                in accordance with this Article, and Tenant pays Landlord all sums
                due
                Landlord under this Master Lease.

            

    

     

    
      	
              17.3

            	
              Surrender
                at Termination or Expiration.  Unless otherwise provided in
                Appendix-1, by the date on which this Master Lease as to the applicable
                Leased Premises terminates, for whatever reason, Tenant shall immediately
                surrender and quit the applicable Leased Premises and, in the two
                (2)
                calendar days preceding the date on which this Master Lease terminates,
                for whatever reason, shall remove all property, Trade Fixtures, and
                Improvements from the Leased Premises and
                either:

            

    

     

    A.    Return
      the Leased Premises to White Box condition, or

     

    B.     In
      lieu of returning the Leased Premises to a White Box condition, pay Landlord
      [***].

     

    
      	
              17.4

            	
              Landlord’s
                Right of Reentry.  If Tenant fails to surrender the
                applicable Leased Premises in accordance with this Article, Landlord,
                its
                agents, employees, or representatives, without prejudice to any right
                or
                remedy available to Landlord under this Master Lease, at law, or
                in equity
                and subject to applicable law, may:

            

    

     

    A.     Re-enter
      and repossess the applicable Leased Premises and do one or more of the
      following:

     

    (1)     Dispose
      of any property, Trade Fixtures, or Improvements remaining therein.

     

    (2)     Relet
      the Leased Premises, and if Landlord relets the Leased Premises for Rent and
      other charges equal to or greater than the Rent and other charges for which
      Tenant remains liable, Tenant will be released from further liability under
      this
      Master Lease.

     

    (3)     Use
      all or a portion of the Leased Premises, in which case the fair market value
      of
      the applicable Leased Premises, or the portion of that Leased Premises used,
      will be used in calculating Tenant’s liability described in Section 17.5,
      below.  If the fair market value equals or is greater than the Rent
      and other charges for which Tenant remains liable, Tenant will be released
      from
      further liability under this Master Lease.

     

    (4)     Demand
      full and final settlement, whereupon Tenant shall pay Landlord the present
      value
      of the total of all future Rent that would come due under this Master Lease
      but
      for the termination of this Master Lease, plus other charges that may apply
      under this Master Lease, less the fair market value of the particular Leased
      Premises.  Present value will be calculated

    
      
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    at
      [***],
      at which time Tenant will be released from further liability under this Master
      Lease.

     

    B.     Continue
      this Master Lease in full force and continue to look to Tenant to perform all
      Tenant’s obligations under this Master Lease, but Landlord may pursue Tenant for
      damages incurred or equitable relief or both.

     

    
      	
              17.5

            	
              Survival
                of Tenant’s Liability.  Upon termination of this Master
                Lease, in its entirety or as to a particular Leased Premises and
                without
                prejudice to any right or remedy available to Landlord under this
                Master
                Lease, at law, or in equity and subject to applicable law, Tenant
                remains
                liable for:

            

    

     

    A.     Damages
      for its failure to pay Rent, and other charges;

     

    B.     Damages
      for its failure to perform other obligations;

     

    C.     Expenses
      Landlord incurs in the course of evicting Tenant and reentering the Leased
      Premises, including reasonable attorneys fees and court costs; and

     

    D.     Unless
      Tenant surrenders the Leased Premises in accordance with this Article, any
      cost
      incurred by Landlord in returning the Leased Premises to the same condition
      in
      which Tenant received the Leased Premises on the Delivery Date, less any revenue
      received by Landlord by re-letting the Leased Premises, less any claim Landlord
      successfully makes against the Surety Bond required pursuant to Section
      4.6.

     

    
      	
              17.6

            	
              Tenant’s
                Waivers.  Landlord and Tenant waive any right to
                trial by jury on all issues in all litigation between Landlord and
                Tenant
                arising from or relating to this Master Lease, and Tenant,
                additionally, waives any:

            

    

     

    A.     Right
      to withhold or reduce Tenant’s required payments of Rent and other charges for
      which Tenant is obligated under this Master Lease;

     

    B.     Statutory
      requirements of prior, written notice before filing for eviction or for any
      damages suit for non-payment of Rent;

     

    C.     Claim
      for damages against Landlord resulting from Landlord’s re-entry;

     

    D.     Rights
      to bring any counterclaim, proceeding, or other cause of action in relation
      to
      dispossession; and

     

    E.     To
      the extent legally permissible, for itself and all persons claiming by, through,
      or under it, any right of redemption or for the restoration of the operation
      of
      this Master Lease under any present or future law in case Tenant is dispossessed
      for any cause or in case Landlord obtains possession of the Leased Premises
      as
      herein provided.

     

    
      	
              17.7

            	
              Landlord’s
                Right to Perform for Account of
                Tenant.

            

    

     

    A.     If
      Tenant Defaults under
      this Master Lease, Landlord may cure the Default at any time for the account
      of
      and at the expense of Tenant, and Tenant will reimburse Landlord for any amount,
      including reasonable attorneys fees and interest, expended in connection
      therewith.

     

    
      
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    B.     If
      Landlord seeks enforcement
      of this Master Lease by litigation and prevails, Tenant will reimburse Landlord
      for any attorneys’ fees and disbursements reasonably incurred in connection with
      that litigation.

     

    C.     In
      addition to all other obligations under this Master Lease, Tenant shall pay
      interest to Landlord, at the maximum lawful rate, on the amount specified in
      Sections 17.7A and 17.7B, from the date Landlord incurs the expense until the
      day reimbursed.

     

    
      	
              17.8

            	
              Cumulative
                Rights.

            

    

     

    A.     Landlord’s
      rights and remedies set forth in this Master Lease are cumulative and in
      addition to any other right and remedy now and hereafter available to Landlord
      by this Master Lease, at law or in equity.  Landlord may exercise its
      rights and remedies at any time, in any order, to any extent, and as often
      as
      Landlord deems advisable.

     

    B.     A
      single or partial exercise of a right or remedy will not preclude a further
      exercise of that or another right or remedy.

     

    C.     No
      action, inaction, delay, or omission by Landlord in exercising a right or remedy
      exhausts or impairs the same or constitutes a waiver of, or acquiescence to,
      a
      breach of this Master Lease or Default.

     

    D.     If
      Landlord waives a breach of this Master Lease or a Default, that waiver does
      not
      extend to or affect any other breach of this Master Lease or any other Default
      nor will it impair any right or remedy with respect thereto.

     

    E.     Acceptance
      by Landlord of Rent after Landlord notifies Tenant of termination does not
      waive
      Landlord’s right to terminate or pursue any other right and remedy available to
      Landlord under this Master Lease, at law, or in equity.

     

    
      	
              17.9

            	
              Landlord’s
                Default.

            

    

     

    A.     Landlord’s
      failure to perform any of its obligations under this Master Lease may constitute
      a default of this Master Lease, in its entirety or as to the particular Leased
      Premises affected by Landlord’s failure to perform, if Tenant notifies Landlord,
      in writing, of Landlord’s failure to perform, and Landlord fails to cure the
      failure to perform within at least thirty (30) days after Landlord receives
      Tenant’s notice or such longer period of time as may reasonably be necessary to
      cure the type of alleged breach under the circumstances.  Notice
      required under this Section must include a description of the particular facts
      and circumstances alleged giving rise to the alleged breach and the date of
      commencement of the alleged breach.

     

    B.     If
      Landlord defaults on this Master Lease, Tenant, in addition to any other rights
      or remedies to which it is entitled at law or in equity, may:

     

    (1)     Treat
      this Master Lease as still in full force and effect continuing to look to
      Landlord to perform its obligations under this Master Lease but seek damages
      or
      equitable relief, or both; or

     

    (2)     Terminate
      this Master Lease, in its entirety or as to the applicable Leased Premises,
      with
      thirty (30) days written, notice stating the date on which Tenant will vacate
      the Leased Premises.  If Tenant fails to timely vacate the Leased
      Premises, Tenant’s notice of termination

    
      
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    will
      be
      deemed to be void; the Master Lease, in its entirety or as to the applicable
      Leased Premises, will continue in full force and effect, and Landlord will
      be
      deemed to have cured any alleged breach.

     

    C.     Regardless
      of which remedy Tenant pursues, LANDLORD’S LIABILITY FOR DEFAULT UNDER
      THIS MASTER LEASE, AT LAW OR IN EQUITY, WILL NOT EXCEED AN AMOUNT EQUAL TO
      ONE
      (1) YEARS RENT PAID BY TENANT FOR THE LOCATION IN WHICH LANDLORD WAS FOUND
      IN
      DEFAULT.

     

    
      	
              17.10

            	
              Force
                Majeure.  If a force majeure occurs, the time that
                the force majeure delays performance by either Landlord or Tenant
                will be
                excluded from the computation of time within which Landlord, Tenant,
                or
                both, must perform under this Master Lease.  For purposes of
                this Master Lease, a force majeure is a strike, riot, act of God,
                shortage of material, war, governmental law, regulation, or restriction,
                or any other cause of any kind that is beyond the reasonable control
                of
                the party owing performance.

            

    

     

    Article
      XVIII

    Holding
      Over & Estoppel Certificates

     

    
      	
              18.1

            	
              Holding
                Over.  If Tenant remains in possession of the Leased
                Premises after the expiration of the Lease Term without a new Attachment
                A
                or Master Lease executed by both Landlord and Tenant, Tenant will
                be a
                “Holdover Tenant”.  As a Holdover Tenant, Tenant will occupy the
                Leased Premises on a month-to-month basis with a monthly rental rate
                equal
                to the Rent and other charges applicable at the time of the expiration
                of
                the Master Lease plus [***] of the sum of such
                amounts.  Further, Tenant will be subject to all conditions,
                provisions, and obligations of this Master Lease as far as the same
                are
                applicable to a month-to-month
                tenancy.

            

    

     

    
      	
              18.2

            	
              Estoppel
                Certificates.  Tenant, at Landlord’s request, shall deliver
                to Landlord an executed, written, statement addressed to the party
                designated in Landlord’s request and identifying Tenant and this Master
                Lease and certifying and confirming, in addition to any information
                or
                confirmation Landlord may reasonably require, the
                following:

            

    

     

    A.     That
      this Master Lease is either unmodified since its execution and in full force
      and
      effect, or modified since its execution but still in full force and effect
      as
      modified;

     

    B.     That
      Landlord either is not in default of any of its obligations under this Master
      Lease or is in default, specifying the default;

     

    C.     Tenant’s
      obligations and restrictions concerning subordination and attornment;
      and

     

    D.     The
      Lease Term, Rent Commencement Date, and Expiration Date as to the Leased
      Premises for which the estoppel certificate applies.

     

    
      	
              18.3

            	
              Agent-in-Fact.  Tenant’s
                failure to provide an estoppel certificate materially complying with
                the
                Section 18.2, above, is a material breach of this Master Lease through
                which, in addition to any other right or remedy Landlord may have
                under
                this Master Lease, at law, or in equity, Landlord is hereby
                irrevocably appointed and authorized as the agent and attorney-in-fact
                of
                Tenant to execute and deliver any such written statement on Tenant’s
                behalf if Tenant fails to do so within seven (7) days after receiving
                a
                written request from
                Landlord.

            

      
        
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    Article
      XIX

    Interpretation,
      Notices, & Miscellaneous

     

    
      	
              19.1

            	
              Severability.  If
                a court of proper jurisdiction determines that any provision of this
                Master Lease, or any application of the provision, is invalid or
                unenforceable, the remainder of this Master Lease, or the applications
                of
                the provision that are not invalid or unenforceable, will remain
                in full
                force and effect to the fullest extent permitted by
                law.

            

    

     

    
      	
              19.2

            	
              Captions.  The
                captions and headings used throughout this Master Lease are for
                convenience of reference only and do not affect the interpretation
                of this
                Master Lease.

            

    

     

    
      	
              19.3

            	
              Merger.  This
                Master Lease, together with any Attachment A, exhibit, addendum,
                amendment, or any other document attached to and incorporated into
                this
                Master Lease, constitutes the entire agreement between Landlord and
                Tenant, a complete allocation of risks between them, and a complete
                and
                exclusive statement of the terms and conditions of this Master
                Lease.  This Master Lease is merged into by and supersedes all
                prior written or oral agreements, leases, licenses, negotiations,
                dealings, and understandings, unless specifically provided otherwise
                in
                Appendix-1.  Except for changes to the Delivery Window and
                Delivery Date designated in the applicable Attachment A, no amendment
                or
                other modification of this Master Lease will be valid or binding
                on either
                Landlord or Tenant unless it is reduced to writing and signed by
                both
                Landlord and Tenant.

            

    

     

    
      	
              19.4

            	
              Survival.  The
                following provisions of this Master Lease survive the termination,
                for
                whatever reason, of this Master Lease:  Article XIII, Article
                XIV, Article XV, Article XVII, Section 2.4, Section 18.1, and
                Appendix-2.

            

    

     

    
      	
              19.5

            	
              Third
                Party Beneficiaries.  Nothing in this Master Lease confers,
                or intends to confer, any rights upon any person or entity not a
                party to
                this Master Lease, except for the Indemnitees identified in Section
                13.1B,
                above.

            

    

     

    
      	
              19.6

            	
              Benefit
                & Binding Effect.  The terms, provisions, and covenants
                contained in this Master Lease apply to, inure to the benefit of,
                and are
                binding on Landlord and Tenant, and their respective heirs, successors,
                and assignees.

            

    

     

    
      	
              19.7

            	
              Fiduciary
                Relationship.  This Master Lease does not create a fiduciary
                relationship between Landlord and Tenant.  Any expenditures,
                investments, or commitments Tenant makes in reliance on any present
                or
                future business or lease with Landlord is done at Tenant’s own risk and
                without any obligation whatsoever from
                Landlord.

            

    

     

    
      	
              19.8

            	
              No
                Obligation.  Landlord has no obligation to offer, nor does
                the course of performance under this Master Lease create any obligation
                on
                Landlord to offer, any number of locations for lease to
                Tenant.  Any locations offered for lease to Tenant in accordance
                with this Master Lease are in the sole and absolute discretion of
                Landlord.  Landlord, in its sole discretion and at any time, may
                cease offering locations to Tenant, and this Master Lease will continue
                in
                full force and effect solely with regard to those Leased Premises
                for
                which both Landlord and Tenant have signed an Attachment
                A.  Landlord may lease locations that Landlord might otherwise
                offer to Tenant under this Master Lease to any party that Landlord
                chooses
                including, without limitation, Tenant’s competitors.  Tenant
                recognizes and agrees that this Master Lease creates no exclusive
                rights
                in Tenant’s favor.

            

    

     

    
      
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              19.9

            	
              Independent
                Contractors.  Nothing contained in this Master Lease creates
                a partnership, joint venture, principal/agent relationship, or any
                other
                relationship other than that of landlord/tenant between Landlord
                and
                Tenant.

            

    

     

    
      	
              19.10

            	
              Notice.  Any
                notice required by this Master Lease must be in writing and delivered
                either by hand; by commercial courier; or by placing notice in the
                U.S.
                mail, certified mail, return receipt requested, properly addressed
                and
                with sufficient postage.

            

    

     

    A.     Notice
      is deemed received on:

     

    (1)     Delivery
      if by hand;

     

    (2)     One
      (1) business day (Monday through Friday) after deposit with the commercial
      courier, provided deposit is done timely so as to effect next business day
      delivery, if by commercial courier; or

     

    (3)    Three
      (3) business days after placing the notice in the U.S. mail, properly addressed
      and with sufficient postage for certified mail, return receipt
      requested.

     

    B     Notice
      intended for Tenant must be sent to the address provided in
      Appendix-1.

     

    C.     Notice
      intended for Landlord must be sent to: Wal-Mart Stores, Inc., Asset Management,
      [***], with a copy to:  Wal-Mart Stores, Inc., Wal-Mart Stores
      Division – Legal, Office of the General Counsel, [***].

     

    
      	
              19.11

            	
              Governing
                Law.  This Master Lease, and any property or tort disputes
                between Landlord and Tenant, will be construed and enforced in accordance
                with the laws of the State of Arkansas, without regard to the internal
                law
                of Arkansas regarding conflicts of law.  Neither Landlord nor
                Tenant may raise in connection therewith, and hereby waive, any defenses
                based on venue, inconvenience of forum, or lack of personal jurisdiction,
                in any action or suit brought in accordance with the
                foregoing.

            

    

     

    
      	
              19.12

            	
              Jurisdiction
                and Venue.  For any suit, action, or legal proceeding,
                arising from this Master Lease or from any property or tort dispute
                between Landlord and Tenant, Landlord and Tenant consent and submit
                to the
                exclusive jurisdiction and venue of the state courts of Arkansas
                situated
                in Benton County, Arkansas or the federal courts situated in the
                Western
                District of Arkansas.  Landlord and Tenant acknowledge
                that they have read and understand this clause and willingly agree
                to its
                terms.

            

    

     

    
      	
              19.13

            	
              Attorney’s
                Fees.  Except as otherwise provided in this Master Lease, if
                either party commences an action in a court of law against the other
                party
                to enforce the terms of this Master Lease, to declare rights under
                this
                Master Lease, or for any other reason related to this Master Lease,
                each
                party will pay its own attorney’s fees and costs incurred as a result of
                that action.

            

    

     

    [signature
      page to follow]

     

    
      	
              Signed:

            	 	 	 	 	 
	
              Witness:

            	 	
              Landlord:  Wal-Mart
                Stores, Inc.  

            	 
	
               

            	 	
               

            	 	
               

            	 

    

    
      
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    Tenant:
      __________

    

    
      	 	 	
              Taylor
                C. Smith

            	 	
              Date

            	 
	 	 	
              Wal-Mart
                Stores, Inc.

            	 	 	 
	 	 	 	 	 	 
	
               

            	 	 	 	 	 
	
              Witness:

            	 	
              Landlord:  Wal-Mart
                Stores East, LP  

            	 
	
               

            	 	
               

            	 	
               

            	 
	 	 	
              Taylor
                C. Smith

            	 	
              Date

            	 
	 	 	
              Wal-Mart
                Stores East, LP

            	 	 	 
	 	 	 	 	 	 
	
               

            	 	 	 	 	 
	
              Witness:

            	 	
              Landlord:  Wal-Mart
                Stores Texas, LP  

            	 
	
               

            	 	
               

            	 	
               

            	 
	 	 	
              Taylor
                C. Smith

            	 	
              Date

            	 
	 	 	
              Wal-Mart
                Stores Texas, LP

            	 	 	 
	 	 	 	 	 	 
	
               

            	 	 	 	 	 
	
              Witness:

            	 	
              Landlord:  Wal-Mart Louisiana,
                LLC  

            	 
	
               

            	 	
               

            	 	
               

            	 
	 	 	
              Taylor
                C. Smith

            	 	
              Date

            	 
	 	 	
              Wal-Mart Louisiana,
                LLC

            	 	 	 
	 	 	 	 	 	 
	
               

            	 	 	 	 	 
	
              Signed:

            	 	 	 	 	 
	
              Witness:

            	 	
              Tenant:  Portrait
                Corporation of America, Inc.  

            	 
	
               

            	 	
               

            	 	
               

            	 
	 	 	
              Signature

            	 	
              Date

            	 
	
               

            	 	
               

            	 	 	 
	 	 	
              Printed
                Name

            	 	 	 
	 	 	
               

            	 	 	 
	 	 	
              Title

            	 	 	 

    

    
      
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    Tenant:
      __________

     

    Appendix-1

     

    Basic
      Lease Terms

     

    The
      following terms supplement the terms and conditions set forth in the body of
      the
      Master Lease Agreement, to which this Appendix-1 attaches and into which these
      Appendix-1 incorporates.

     

    1.     Permitted
      Use of Leased
      Premises.

     

    a.     During
      the Lease Term of the applicable Leased Premises, Tenant shall use the Leased
      Premises solely for the purpose of operating a photography studio offering
      the
      taking and selling of portrait photographs and related products; the
      customization of portraits including oil portraits; the taking of passport
      and
      citizenship photographs; the sale of picture frames [***], from time to time,
      sells in the Store; the sale of photographic plaques; the copying and
      restoration of old photographs; the sale of portraiture related software and
      digital images; and the provision and sale of photographic lamination services,
      [***].

     

    b.     During
      the Lease Term of the applicable Leased Premises and other than as permitted
      in
      the preceding paragraph, Tenant may not offer any additional services or
      products, or change the use of the Leased Premises, without prior written
      consent of Landlord’s Home Office Leasing Department, which such consent may be
      withheld in Landlord’s sole and exclusive judgment.

     

    c.     Commencing
      on the actual Rent Commencement Date of the applicable Leased Premises and
      continuing until expiration or termination of this Master Lease in its entirety
      or as to the applicable Leased Premises, and provided that Tenant is not in
      Default (as defined in this Master Lease) as to the applicable Leased Premises,
      [***].  Tenant’s rights under this paragraph 1c become null and void,
      and Tenant will lose all rights herein, if Tenant ceases to use the applicable
      Leased Premises for the Primary Permitted Use of the operation of a photography
      studio; if Tenant Defaults (as defined in this Master Lease) as to the
      applicable Leased Premises; or if Tenant Transfers (as defined in this Master
      Lease) this Master Lease, either in its entirety or as to an applicable Leased
      Premises, or its rights or interests in this Master Lease, or sublets all or
      any
      portion of any Leased Premises Tenant leases under this Master
      Lease.

     

    d.     If
      Landlord breaches paragraph 1c, above, this paragraph 1d governs Tenant’s sole
      remedy at law or in equity, and in no event will Landlord be liable to Tenant
      for any damages even if actual, compensatory, or consequential.

     

    (1)     Tenant,
      within [***] days following Tenant’s receipt of any facts giving rise to the
      alleged breach, shall notify Landlord, in writing, of the alleged breach
      describing with particularity the facts and circumstances giving rise to the
      alleged breach and the date of commencement of the alleged breach.

     

    
      
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    Tenant:
      __________

     

    (2)     If
      Landlord fails to cure the alleged breach within at least [***] days following
      Landlord’s receipt of notice in accordance with the preceding paragraph, Tenant
      may terminate this Master Lease as to the applicable Leased Premises with at
      least [***] days written notice to Landlord stating the date on which Tenant
      will vacate the applicable Leased Premises.  If Tenant fails to timely
      vacate the applicable Leased Premises, Tenant’s notice of termination will be
      deemed void; this Master Lease as to the applicable Leased Premises will
      continue in full force and effect, and Landlord will be deemed to have cured
      any
      alleged breach of paragraph 1c, above.  Other than the right to seek
      specific performance for Landlord’s breach of paragraph 1a, above, Tenant waives
      any right it may have available to it at law or in equity for any Claim (as
      defined in this Master Lease) resulting from Landlord’s alleged breach of
      paragraph 1, above.

     

    e.     Despite
      the preceding paragraph, the following actions do not constitute a breach of
      this Master Lease by Landlord:

     

    (1)     Sales,
      marketing, and promotions by Landlord or any of Landlord’s affiliates,
      subsidiaries, officers, directors, employees, or agents, of any photographic
      services or products including, but not limited to, frames, accessories, and
      film; and

     

    (2)     Sales
      of one-hour photography developing products and services and the taking and
      sale
      of passport pictures by any other tenant in the store whose leases pre-date
      this
      Master Lease.

     

    f.     Tenant
      shall not sublet the applicable Leased Premises to a
      Sublessee.  Tenant shall not permit any business or other operation to
      be conducted in the Leased Premises, other than the Permitted Uses designated
      in
      paragraph 1a, above, which must only be performed by Tenant.

     

    g.   
       Landlord will use commercially reasonable efforts to include Tenant
      on the blueprints for store expansions if Tenant is already leasing space in
      the
      Store being expanded.

     

    2.      Leased
      Premises Specifications.

     

    a.     Tenant,
      at its sole cost and expense, shall install, provide, and maintain all equipment
      necessary for the operation of its Permitted Uses, as described in paragraph
      1a
      above, including, but not limited to, any equipment required by any professional
      standards, law, rule, or regulation applicable to Tenant’s
      business.  To the extent that the installation, provision, or
      maintenance of the equipment requires alteration of the Leased Premises that
      is
      not located in a newly constructed Store, Tenant shall comply with the terms
      of
      Article II of this Master Lease.

     

    b.     If
      Landlord terminates a Leased Premises as a result of Store Renovations, Tenant
      shall surrender the applicable Leased Premises as required in Section 17.3
      of
      the Master Lease Agreement and shall remove all property, Trade Fixtures, and
      Improvements from the Leased Premises and either return the Leased Premises
      to
      Landlord in broom clean condition or pay Landlord eight thousand dollars
      ($8,000).

     

    c.     Tenant’s
      obligations under this Section 2 are in addition to, and not in lieu of,
      Tenant’s obligations to prepare the Leased Premises in accordance with Article
      II of this Master Lease.

     

    
      
        
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    Tenant:
      __________

     

    3.      Hours
      of Operation:  Monday through Saturday from [***] pm, closed for
      lunch from [***]; Sunday from [***], closed for lunch from [***].

     

    4.      Trade
      Name(s):     Wal-Mart
      Portrait Studio

                                                     
      Picture Me

     

    As
      required by paragraph 8c, below, Tenant shall rebrand its trade name and, in
      connection therewith, remove the “Wal-Mart” name from all of Tenant’s signage
      and materials no later than January 31, 2008.  Until that time, or
      such earlier date that Tenant’s right to use the “Wal-Mart” name terminates,
      Tenant may conduct its operations under either of the trade names listed above,
      provided that any usage of the “Wal-Mart’ name is consistent with the other
      requirements of this Master Lease.

     

     

    5.      Address
      of Tenant.  All notices required to be sent to Tenant under this
      Master Lease must be sent to:

     

    
      
        	 	 	 
	
                Name
                  of Tenant:

              	 	
                Portrait
                  Corporation of America, Inc.

              
	
                Attention:

              	 	
                C.
                  David Alexander

              
	
                Title:

              	 	
                Chairman,
                  President & CEO

              
	
                Address:

              	 	
                815
                  Matthews-Mint Hill Road

              
	 	 	
                Matthews,
                  North Carolina 28105

              
	
                Telephone
                  Number:

              	 	
                (704)
                  588-4351

              
	
                Facsimile
                  Number:

              	 	
                (877)
                  8332-2406

              
	
                Email
                  Address:

              	 	
                N/A

              
	
                With
                  Copy To:

              	 	
                J.
                  Robert Wren, Jr.

              
	 	 	
                815
                  Matthews-Mint Hill Road

              
	 	 	
                Matthews,
                  North Carolina 28105

              

      

6.       Advisements.  [Intentionally
      Omitted]

     

    7.       Covenants,
      Representations, and Warranties.

     

    a.       Tenant
      covenants to promptly inform Landlord of the resignation or termination of
      its
      Chief Executive Officer, Executive Vice-President of Studio Operations, or
      both.  Landlord shall have the right to approve, in its sole and
      absolute discretion, any successor that Tenant proposes to appoint to any of
      such offices.  Tenant shall submit to Landlord the resume of any such
      proposed successor officer and shall arrange a meeting between such proposed
      successor officer and Landlord.  Landlord shall use commercially
      reasonable efforts to meet with such proposed successor within [***] business
      days (Monday through Friday) following its receipt of Tenant’s request and shall
      either approve, which such approval may not be unreasonably withheld, or
      disapprove of the proposed successor within [***] business days (Monday through
      Friday) following such personal meeting.

     

    
      
        
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    Tenant:
      __________

     

    (1)     If
      Landlord waives the personal meeting required in the preceding paragraph,
      Landlord will base its approval or disapproval of the change on the proposed
      replacement’s resume provided to Landlord by Tenant.

     

    (2)     Despite
      anything to the contrary elsewhere in this Master Lease, Landlord’s approval is
      not required with respect to any proposed successor officer if the proposed
      successor officer has at least five (5) years experience as the Chief Executive
      Officer, President, or Chief Operating Officer of a retail chain that
      experienced positive sales and income growth for a minimum of three (3) out
      of
      the last five (5) years during which the proposed successor officer held such
      office, that accrued annual sales of at least [***], and that consists of at
      least [***] stores, provided that the proposed successor officer has not been
      convicted of a felony nor has been terminated from such a position for poor
      performance.

     

    b.      Tenant
      covenants that in the event of a Change in Control (as defined below), Tenant
      shall advise Landlord in advance of the proposed Change in Control, and Landlord
      will have five (5) business days (Monday through Friday) to approve, which
      such
      approval may not be unreasonably withheld,  or disapprove of the
      Change in Control.  In the event Landlord disapproves of the Change in
      Control, such Change in Control either may not take place or may take place,
      provided that, if the Change of Control takes place, Landlord, at is election,
      may either declare a Default of this Master Lease or demand that Tenant close
      up
      to an additional five hundred (500) locations in addition to the closures
      required below.  If Landlord exercises its right to demand additional
      closures, Tenant will provide Landlord, for Landlord’s approval, a list of
      locations Tenant will close along with the proposed schedule for
      closings.  All locations approved by Landlord to be closed must be
      closed within six (6) months following Landlord’s exercise of the above
      described right, unless any time within that six (6) months falls between
      October 1st of
      a year and December 31st of that
      same
      year.  In that case, the six (6) month period described in this
      paragraph will be extended by three (3) months.

     

    (1)     Despite
      the previous paragraph, Landlord’s approval of a Change in Control is not
      required if the Change in Control results in the control of Tenant by an
      investment company with at least [***] in invested capital that is not invested
      in a competitor of either Tenant or Landlord; a company or companies with
      consolidated group annual revenues exceeding [***] and with sales and profits
      that increased in three (3) out of the five (5) years prior to the Change in
      Control;  a group of unaffiliated individuals whose collective net
      worth exceeds five (5) times their acquisition cost; or any combination of
      the
      above.

     

    (2)     For
      purposes of this Section 7, “Change in Control” means the direct or indirect
      acquisition, other than as a result of the financial restructuring and chapter
      11 proceedings commenced by Tenant on August 31, 2006, of the power to vote
      50.1% or more of Tenant’s voting securities.

     

    c.      Tenant
      shall provide Landlord quarterly financial statements that are prepared by
      Tenant, reviewed on a quarterly basis by an independent certified public
      accountant, and audited on an annual basis by such independent certified public
      accountant.  A solvency certificate in which an officer of Tenant
      certifies to Landlord that Tenant is solvent and is generally paying its debts
      as the debt becomes due must accompany each financial statement.

     

    8.      Miscellaneous.

     

    
      
        
          ***Confidential
            treatment requested.

          
          

        

        
          Appendix-1-40

          
          

        

        
          
          

        

      

    

    

    CONFIDENTIAL
      TREATMENT REQUESTED FOR PORTIONS OF THIS DOCUMENT.  PORTIONS FOR WHICH
      CONFIDENTIAL TREATMENT IS REQUESTED ARE DENOTED WITH
      BRACKETS.

    

    Tenant:
      __________

     

    a.       Lease
      Term.

     

    (1)    Despite
      anything to the contrary elsewhere in this Master Lease, this Master Lease
      will
      not be effective unless the form and substance of the order from the presiding
      bankruptcy court approving this Master Lease is acceptable to Landlord, in
      its
      sole and absolute discretion, and such order becomes final and
      nonappealable.

     

    (2)     Subject
      to the preceding paragraph, this Master Lease is effective February 1, 2007
      and
      continues for three (3) years unless terminated earlier as the result of a
      Default (as defined in this Master Lease) or as otherwise permitted under this
      Master Lease.

     

    (3)     This
      Master Lease automatically extends for an additional two (2) years for each
      applicable Leased Premises from which Landlord receives from Tenant Base Rent
      for the period from July 1, 2008 through June 30, 2009 at a rate equal to or
      greater than [***] per square foot, provided that no Default (as defined in
      this
      Master Lease) has occurred or is continuing.

     

    (4)     For
      each Leased Premises from which Landlord receives from Tenant Base Rent for
      the
      period of July 1, 2008 through June 30, 2009 at a rate less than [***] per
      square foot, Landlord and Tenant may mutually agree to extend this Master Lease
      for two (2) years by written agreement executed no later than [***], provided
      that no Default (as defined in this Master Lease) has occurred and is
      continuing.

     

    (5)     If
      this Master Lease is not extended for any reason as to any Leased Premises,
      Tenant will close the applicable Leased Premises and deliver such locations
      to
      Landlord in a broom clean condition and consistent with all other obligations
      of
      Tenant under this Master Lease on January 31, 2010 or such earlier date as
      may
      be agreed to by Landlord and Tenant.

     

    b.     Rent.  Provided
      Tenant is not in Default (as defined in this Master Lease) on its Rent
      obligations, Base Rent, which will accrue daily for the term of this Master
      Lease and any renewal thereof, is:

     

    (1)     From
      June 1, 2006 through January 31, 2008, [***] of the monthly Gross Sales (as
      defined below).  Tenant shall pay Landlord the Base Rent due by the
      tenth (10th)
      calendar day of the third month following the month in which such Gross Sales
      occurred.  For example, the monthly Base Rent due for the period
      ending June 30, 2006 is due on September 10, 2006.

     

    (2)     From
      February 1, 2008 through January 31, 2009, [***] of the monthly Gross Sales (as
      defined below).  Tenant shall pay Landlord Base Rent due by the tenth
      (10th) calendar
      day of the second month following the month in which such Gross Sales
      occurred.  For example, the monthly Base Rent due for the period
      ending February 29, 2008 is due on April 10, 2008.

     

    (3)     From
      February 1, 2009 through the end of the Lease Term, including any renewal,
      [***]
      of the monthly Gross Sales (as defined below).  Tenant shall pay
      Landlord the Base Rent due by the tenth (10th) calendar
      day of
      the month following the month in which such Gross Sales occurred.  For
      example, the monthly Base Rent due for the period ending February 28, 2009
      is
      due on March 10, 2009.

     

    (4)     In
      the event that Tenant fails to pay any amount due under this Master Lease within
      five (5) days of the date such amount is due, Rent for the full term of this
      Master Lease will automatically reset to

     

    
      
        ***Confidential
          treatment requested.

        
        

      

      
        Appendix-1-41

        
        

      

      
        
        

      

    

    CONFIDENTIAL
      TREATMENT REQUESTED FOR PORTIONS OF THIS DOCUMENT.  PORTIONS FOR WHICH
      CONFIDENTIAL TREATMENT IS REQUESTED ARE DENOTED WITH
      BRACKETS.

    

    Tenant:
      __________

     

    [***]
      of
      the monthly Gross Sales, with any retroactive arrearages due and payable
      immediately.

     

    c.     Rebranding.

     

    (1)     Tenant
      and Landlord agree that Tenant’s right to use the “Wal-Mart” name, which is
      Landlord’s trade name, constitutes a non-exclusive trademark license and,
      therefore, is a personal right to the Tenant, which may not be assigned under
      applicable law including, without limitation, state and federal trademark law,
      without the prior, written consent of Landlord.

     

    (2)     Tenant
      shall remove the “Wal-Mart” name from all Leased Premises and studios including,
      without limitation, any signage and promotional materials and activity and
      cease
      using the “Wal-Mart” name no later than January 31, 2008, except as permitted
      elsewhere in this Master Lease.

     

    (3)      [***].

     

    d.     Rebranding
      Escrow.  [***].  Tenant shall deposit the Rebranding
      Escrow within three (3) business days of the date on which the order from the
      presiding bankruptcy court approving this Master Lease becomes final and
      nonappealable.  Tenant may only draw on the Rebranding Escrow to cover
      the costs of the rebranding required in paragraph 8c, above.  For
      clarification, the Rebranding Escrow applies to a total of [***] installments
      of
      Rent, which have payments with due dates from August 10, 2006 through April
      10,
      2007.

     

    (1)     Tenant
      shall deposit the Rebranding Escrow due for subsequent months no later than
      the
      [***)] calendar day of each such month.

     

    (2)     Any
      balance of the Rebranding Escrow remaining in the escrow account after [***]
      must be paid to Landlord as additional Rent within ________ business days
      (Monday through Friday).  If Tenant fails to pay Landlord the
      above-described balance of the Rebranding Escrow, Landlord may withdraw and
      retain as additional rent all amounts then remaining or thereafter deposited
      into the escrow account.  Landlord’s withdrawal of such funds does not
      in any way excuse Tenant’s obligation to complete the Rebranding as required in
      paragraph 8c, above.

     

    (3)     Tenant
      shall provide Landlord with a monthly accounting of deposits into and
      disbursements from the escrow account in a form acceptable to Landlord, in
      its
      sole and absolute discretion.

     

    e.     Store
      Closings.  For purposes of this Section, “Fiscal Year” means
      February 1st of
      a given year through January 31st of the
      following
      year.

     

    (1)     Tenant,
      no later than July 31, 2007, shall close the five hundred (500) Leased Premises
      designated in Exhibit ______, which is attached to and incorporated into this
      Master Lease.

     

    (2)     Starting
      with the Fiscal Year ending [***] and continuing through the Lease Term of
      this
      Master Lease, including any extension, until the first Fiscal Year in which
      Tenant achieves

     

    
      
        ***Confidential
          treatment requested.

        
        

      

      
        Appendix-1-42

        
        

      

      
        
        

      

    

    CONFIDENTIAL
      TREATMENT REQUESTED FOR PORTIONS OF THIS DOCUMENT.  PORTIONS FOR WHICH
      CONFIDENTIAL TREATMENT IS REQUESTED ARE DENOTED WITH
      BRACKETS.

    

    Tenant:
      __________

     

    positive
      comparable sales in the Leased Premises, Tenant shall close an additional five
      hundred (500) Leased Premises every Fiscal Year in which either Landlord’s total
      US comparable stores sales are flat or positive and Tenant’s comparable stores
      sales for the same Fiscal Year are negative, or Landlord’s total US comparable
      stores sales are negative and Tenant’s comparable stores sales for that same
      Fiscal Year are not positive and are more than fifty (50) basis points of
      Landlord’s comparable stores sales.  After the first year that Tenant
      achieves positive comparable sales, Tenant is no longer obligated to close
      Leased Premises as described in the preceding sentence.

     

    (3)     Tenant
      shall submit its total sales and, if applicable, will submit to Landlord for
      approval a list of Leased Premises to be closed, along with a schedule of
      closings, by February 10th of the
      subsequent
      Fiscal Year or no later than five (5) days after Landlord publishes its US
      sales
      for that Fiscal Year.  All such Leased Premises closings must be
      completed no later than July 31st of the
      subsequent
      Fiscal Year.  Approval of Leased Premises Tenant proposes to close in
      accordance with this Section 8e will be in Landlord’s sole and absolute
      discretion.

     

    (4)     All
      Leased Premises closed in accordance with this Section 8e must be closed in
      accordance with Section 17.3 of the Master Lease Agreement, except that Tenant
      shall leave each Leased Premises closed in accordance with this Section 8e
      in
      broom clean condition.

     

    f.    
       Additional Events of Default. In addition to the Events of Default
      designated elsewhere in this Master Lease, an Event of Default occurs
      if:

     

    (1)     Tenant
      commences or involuntarily becomes the subject of any case filed under chapter
      7
      or chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”), or
      any similar insolvency proceeding.  If Tenant so Defaults on this
      Master Lease, Tenant will vacate the Leased Premises as soon after the above
      described filing as possible but no later than the expiration of the statutory
      period under section 365 of the Bankruptcy Code for assumption of leases unless
      this Master Lease has been assumed by that date pursuant to an order entered
      upon proper motion with appropriate notice and opportunity for
      parties-in-interest including, without limitation, Landlord, to respond to
      or
      object to such motion.  In light of the Intent (as described below),
      the statutory period set forth in section 365(d)(4)(A) of the Bankruptcy Code
      for assumption of leases will not extend for any reason including, without
      limitation, pending the outcome of any related litigation or appeal, unless
      Landlord consents in writing.

     

    (2)     Tenant
      defaults on any agreement with a lender with respect to any debt facility and:
      (i) as a result of such default, the debt facility is accelerated; (ii) Tenant
      fails to cure such default; or (iii) the lender, within [***] days after the
      occurrence of the default, refuses to permanently waive the
      default.  Tenant shall notify Landlord of any notice of default from
      any lender with respect to any debt facility promptly after receiving such
      notice.

     

    g.     Additional
      Remedies.  In addition to Landlord’s rights and remedies available
      to it elsewhere in this Master Lease, at law, or in equity, if Tenant Defaults
      on this Master Lease and in light of the Intent of the parties as described
      below, Tenant waives the automatic stay or any similar provision, if applicable,
      and authorizes Landlord to exercise any and all remedies available to Landlord
      without need for notice or any further proceedings including, without
      limitation, court proceedings, upon the earlier to occur of either the
      termination of this Master Lease or the expiration of the statutory period
      described in paragraph 8f(1), above.

     

    
      
        
          ***Confidential
            treatment requested.

          
          

        

        
          Appendix-1-43

          
          

        

        
          
          

        

      

    

    

    CONFIDENTIAL
      TREATMENT REQUESTED FOR PORTIONS OF THIS DOCUMENT.  PORTIONS FOR WHICH
      CONFIDENTIAL TREATMENT IS REQUESTED ARE DENOTED WITH
      BRACKETS.

    

    Tenant:
      __________

     

    h.     Control.  To
      the extent Article X of the Master Lease Agreement conflicts with this paragraph
      8h, this paragraph 8h governs.  Tenant shall obtain Landlord’s consent
      prior to Tenant’s causing or permitting, within any twelve (12) month period,
      the Transfer of more than either an aggregate of twenty five per cent (25%)
      of
      Tenant’s voting shares or twenty five per cent (25%) of the value of Tenant’s
      unencumbered assets as of the date of  the Transfer.  If
      Landlord does not consent, Landlord, in its sole discretion, may declare a
      Default of this Master Lease.

     

    (1)     If
      Landlord consents to the proposed Transfer of Tenant’s voting shares, as
      described in the preceding sentence, or of Tenant’s unencumbered assets, as
      described in the preceding sentence, Landlord will notify Tenant of its consent
      within five (5) business days after Landlord receives Tenant’s written notice of
      the proposed Transfer.  Landlord may not unreasonably withhold its
      consent.

     

    (2)     Despite
      the foregoing, Landlord's consent will not be required under this Master Lease
      prior to the trading of Tenant's shares on the public securities markets, except
      that Landlord's consent will be required prior to additional purchases by any
      person or group who is or becomes the beneficial owner of 25% or more of
      Tenant's voting shares.

     

    (3)     Additionally,
      Landlord’s consent is not required under this Master Lease for any Transfer of
      Tenant’s unencumbered assets that is for fair value and that does not diminish
      Tenant’s ability to operate its business in the Leased Premises in accordance
      with this Master Lease.

     

    (4)     For
      the avoidance of doubt, Tenant does not have the right to Transfer (as defined
      in this Master Lease) or assign its rights under all or any portion of this
      Master Lease to a third party in any manner or under any
      circumstances.  As noted in the Intent (described below), the nature
      of the relationship between the parties is unique and the nature of the Leased
      Premises is unique.  Tenant and Landlord agree that this Master Lease
      qualifies as, and is treated as, a “personal services contract,” as such term is
      used in Section 365 of the Bankruptcy Code.

     

    i.     
       Letter of Credit.  Tenant shall provide Landlord with an
      irrevocable standby letter of credit in the amount of [***] drawable by Landlord
      upon any failure by or inability of Tenant to timely meet its obligations under
      this Master Lease or to Tenant’s customers including, without limitation,
      obligations resulting from the filing of a subsequent bankruptcy proceeding
      by
      or against Tenant or the shutdown, not previously authorized by Landlord, by
      Tenant of operations at any Leased Premises.  Tenant shall maintain
      this letter of credit on an evergreen basis during the term of this Master
      Lease, including any extension of this Master Lease.  Landlord shall
      use the proceeds from this letter of credit as it determines in its sole and
      absolute discretion including, without limitation, to refund customer deposits;
      to cover other transitional costs including, without limitation, reletting
      the
      Leased Premises; and to acquit any other pending obligations of
      Tenant.

     

    j.     
      Audit. For purposes of this Master Lease, “Gross Sales” means the
      aggregate selling price of all merchandise sold or delivered at or from any
      part
      of the Leased Premises and the charges for all services sold or performed at
      or
      from any part of the Leased Premises or at any other location if the merchandise
      is taken from the Leased Premises or the order for services taken at the Leased
      Premises including sales and charges for cash or credit and credit sales
      regardless of collections.  “Gross Sales” excludes refunds made by
      Tenant to its customers for merchandise originally included in Gross Sales
      but
      returned to

     

    
      
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        Appendix-1-44

        
        

      

      
        
        

      

    

    CONFIDENTIAL
      TREATMENT REQUESTED FOR PORTIONS OF THIS DOCUMENT.  PORTIONS FOR WHICH
      CONFIDENTIAL TREATMENT IS REQUESTED ARE DENOTED WITH
      BRACKETS.

    

    Tenant:
      __________

     

    Tenant;
      exchanges of merchandise between stores of Tenant where such exchanges are
      made
      solely for the convenient operation of Tenant’s business; and the amount of any
      city, country, or state sales tax on sales paid to a taxing authority by Tenant,
      but not by any vendor of Tenant.  A sale is made in the Leased
      Premises if the merchandise or services are ordered from the Leased Premises
      in
      person, via telephone facsimile, internet, or other electronic means, or filled
      at the Leased Premises, or delivered from the Leased Premises.

     

    (1) 
         Landlord has the right to inspect and audit all books and records
      and other papers and files of Tenant relating to Gross Sales.  Any
      such inspection or audit will be conducted during Tenant’s regular business
      hours, and if Landlord so requests, Tenant will produce the appropriate books
      and records and other papers and files relating to Gross Sales.

     

    (2)   
       If any audit conducted in accordance with this paragraph 8j discovers
      evidence of under-reporting of Gross Sales by an amount equal to or greater
      than
      [***] or more in any given month, or by [***] or more in any given two months,
      Tenant will be in Default of this Master Lease.

     

    k.     Intent.  Landlord
      and Tenant agree that they have a unique relationship and that the terms of
      this
      Master Lease have been negotiated and drafted based on the advice and with
      the
      assistance of experienced legal counsel with the express intention of reflecting
      that relationship (the “Intent”).  Each provision of this Master Lease
      has been drafted and incorporated herein in light of and in furtherance of
      the
      Intent and in light of each of the following acknowledgements by
      Tenant:

     

    (1)     The
      unique nature of Landlord’s operations and reputation as one of the largest
      operators of discount retail stores dedicated to customer satisfaction and
      prompt, quality customer service featuring a broad assortment of quality
      merchandise at low, competitive prices;

     

    (2)     The
      unique circumstances of maintaining Tenant’s operations within Landlord’s Stores
      and the concomitant obligations of Tenant to observe each and every term of
      this
      Master Lease in order to further Landlord’s operations and reputation and not
      to, in any way, impair the shopping experience of Landlord’s
      customers;

     

    (3)     The
      risk to Landlord’s operations and reputation of Tenant’s financial problems and
      uncertainties created during Tenant’s Chapter 11 proceedings (pending on the
      date of this Master Lease);

     

    (4)     The
      propriety and importance of protecting Landlord’s unique Store space,
      operations, and reputation in the vent of a subsequent Chapter 11 or other
      insolvency event of Tenant;

     

    (5)     That
      Landlord is a “shopping center” and that this Master Lease is a “shopping center
      lease,” as those terms are defined and used in section 365 of chapter 11 of the
      Bankruptcy Code;

     

    (6)     That
      Tenant is not an affiliate or agent of, or in any way controlled by or under
      the
      control of Landlord; and

     

    (7)     The
      reliance of Landlord on Tenant’s representations that Tenant will abide by the
      terms of this Master Lease including, without limitation, the limited Permitted
      Use of the Leased Premises, as described in paragraph 1a, above, and the
      prohibition on assignment and transfer.

     

    
      
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        Appendix-1-45

        
        

      

      
        
        

      

    

    CONFIDENTIAL
      TREATMENT REQUESTED FOR PORTIONS OF THIS DOCUMENT.  PORTIONS FOR WHICH
      CONFIDENTIAL TREATMENT IS REQUESTED ARE DENOTED WITH
      BRACKETS.

    

    Tenant:
      __________

     

    l.   
        Not Severable. Whether or not certain of the terms of this
      Master Lease are specific to or can be applied to individual Leased Premises,
      the entire Master Lease including, without limitation, the Lease Term and Rent,
      was negotiated and agreed upon based on the integrated nature of the entire
      agreement and the Intent of the parties is to create an integrated
      agreement.  The parties acknowledge and aver that this Master Lease
      and any of the entitlements hereunder would make no economic sense on a partial
      or several basis.  Accordingly, in view of the foregoing and of the
      Intent, Tenant agrees that this Master Lease and the Leased Premises hereunder
      cannot be severed or partially assumed in any manner without the express written
      consent of Landlord.  Tenant waives any and all rights, if any, to
      seek to sever or partially assume any portion of this Master Lease pursuant
      to
      section 365 of the Bankruptcy Code or otherwise.

     

    m.     Despite
      anything to the contrary is Section 19.13 of the Master Lease Agreement, Tenant
      shall pay all reasonable attorney’s fees and expenses incurred by Landlord by
      reason of any Default by Tenant and the enforcement of any remedies in
      connection with or related to such Default.  Additionally, Tenant
      agrees that in the event of a subsequent chapter 11, chapter 7, or similar
      proceeding, any attorney’s fees or expenses incurred following the filing of the
      petition for relief, to the extent allowed under applicable state law, are
      recoverable by Landlord as a pecuniary loss.  Therefore, any such
      attorney’s fees or expenses must be paid by Tenant as a prerequisite to the
      assumption of this Master Lease pursuant to section 365 of the Bankruptcy Code
      or otherwise.

     

    n.     The
      Master License Agreement entered into by Tenant and Landlord on April 4, 2002
      (“License Agreement”) is null and void and is superseded by this Master
      Lease.  All locations licensed under that License Agreement are hereby
      Leased Premises under this Master Lease and subject to the terms and conditions
      of this Master Lease.  Landlord and Tenant may execute either a single
      Attachment A listing all locations licensed under the License Agreement bringing
      those locations under this Master Lease or execute individual Attachment As
      for
      each location.

     

    o.     This
      Appendix-1 is attached to and incorporated into the Master Lease as part of
      the
      entire agreement between Landlord and Tenant, as set forth in Section 19.3
      of
      the Master Lease Agreement.  All capitalized terms used in this
      Appendix-1 have the meanings set forth in this Master Lease, unless otherwise
      specifically stated in this Appendix-1.  IN
      THE EVENT OF CONFLICT BETWEEN THE MASTER LEASE AGREEMENT AND ANY OTHER DOCUMENT
      ON THE SUBJECT MATTERS SET FORTH IN THIS APPENDIX-1, THE TERMS OF THIS
      APPENDIX-1 GOVERN AND CONTROL.

    

     

    [signature
      page to follow]

     

    
      
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        Appendix-1-46

        
        

      

      
        
        

      

    

    CONFIDENTIAL
      TREATMENT REQUESTED FOR PORTIONS OF THIS DOCUMENT.  PORTIONS FOR WHICH
      CONFIDENTIAL TREATMENT IS REQUESTED ARE DENOTED WITH
      BRACKETS.

    

    Tenant:
      __________

     

    Signed:

     

    
      	
              Witness:

            	 	
              Landlord:  Wal-Mart
                Stores, Inc.  

            	 
	 	 	 	 	 	 
	
               

            	 	
               

            	 	
               

            	 
	 	 	
              Taylor
                C. Smith

            	 	
              Date

            	 
	 	 	
              Wal-Mart
                Stores, Inc.

            	 	 	 
	 	 	 	 	 	 
	
               

            	 	 	 	 	 
	 	 	 	 	 	 
	
              Witness:

            	 	
              Landlord:  Wal-Mart
                Stores East, LP  

            	 
	 	 	 	 	 	 
	
               

            	 	
               

            	 	
               

            	 
	 	 	
              Taylor
                C. Smith

            	 	
              Date

            	 
	 	 	
              Wal-Mart
                Stores East, LP

            	 	 	 
	 	 	 	 	 	 
	
               

            	 	 	 	 	 
	 	 	 	 	 	 
	
              Witness:

            	 	
              Landlord:  Wal-Mart
                Stores Texas, LP  

            	 
	 	 	 	 	 	 
	
               

            	 	
               

            	 	
               

            	 
	 	 	
              Taylor
                C. Smith

            	 	
              Date

            	 
	 	 	
              Wal-Mart
                Stores Texas, LP

            	 	 	 
	
               

            	 	 	 	 	 
	 	 	 	 	 	 
	
              Witness:

            	 	
              Landlord:  Wal-Mart Louisiana,
                LLC  

            	 
	 	 	 	 	 	 
	
               

            	 	
               

            	 	
               

            	 
	 	 	
              Taylor
                C. Smith

            	 	
              Date

            	 
	 	 	
              Wal-Mart Louisiana,
                LLC

            	 	 	 
	
               

            	 	 	 	 	 
	 	 	 	 	 	 
	
              Signed:

            	 	 	 	 	 
	 	 	 	 	 	 
	
              Witness:

            	 	
              Tenant:  Portrait
                Corporation of America, Inc.  

            	 
	 	 	 	 	 	 
	
               

            	 	
               

            	 	
               

            	 
	 	 	
              Signature

            	 	
              Date

            	 
	 	 	 	 	 	 
	
               

            	 	
               

            	 	 	 
	 	 	
              Printed
                Name

            	 	 	 
	 	 	 	 	 	 
	 	 	
               

            	 	 	 
	 	 	
              Title

            	 	 	 

    

    
      
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        Appendix-1-47

        
        

      

      
        
        

      

    

    CONFIDENTIAL
      TREATMENT REQUESTED FOR PORTIONS OF THIS DOCUMENT.  PORTIONS FOR WHICH
      CONFIDENTIAL TREATMENT IS REQUESTED ARE DENOTED WITH
      BRACKETS.

    

    Tenant:
      __________

     

    Appendix-2
      - Insurance

     

    Tenant
      shall procure and maintain, in
      accordance with the Master Lease, the “primary” insurance policies described
      below in accordance with the below conditions.

     

    1.     Worker’s
      Compensation insurance with statutory limits, or if no statutory limits exist,
      with minimum limits of [***] per occurrence, and Employer’s Liability coverage
      with minimum limits of [***], for each employee for bodily injury by accident
      and for each employee for bodily injury by disease.  Tenant shall
      cause Insurer to issue an endorsement providing stopgap insurance in
      monopolistic states in which a Leased Premises under this Master Lease may
      be
      located.

     

    2.     Commercial
      General Liability insurance with a [***] minimum limit per occurrence for each
      Leased Premises leased under the Master Lease or with fresh aggregate limits
      for
      each Leased Premises leased under the Master Lease.

     

    a.     The
      Commercial General Liability policy required under this Paragraph 2 should
      contain neither exclusion for contractual liability assumed by Tenant in a
      lease
      nor any Absolute Pollution exclusion, unless these coverages are provided by
      a
      separate policy with minimum limits equal to the Commercial General Liability
      policy limits required by this Paragraph 2.

     

    b.     Any
      policy obtained to satisfy the obligations of this Paragraph 2 must list as
      Additional Insureds the parties described below in Paragraph 4.

     

    c.     Tenant
      shall submit to Landlord no later than thirty (30) days after the actual Rent
      Commencement Date, Certificates of Insurance and endorsements evidencing
      Tenant’s compliance with this Paragraph 2.

     

    3.     Tenant
      may satisfy the minimum limits required in Paragraphs 1 and 2, above, by
      procuring and maintaining, in accordance with Article XIV of the Master Lease,
      Umbrella/Excess Liability insurance on an umbrella basis, in excess over, and
      no
      less broad than the primary liability coverage; with the same inception and
      expiration dates as the primary liability coverage it is in excess of; with
      minimum limits necessary to satisfy the required primary minimum limits; and
      which “drop down” for any exhausted aggregate limits of the primary liability
      coverage.  Tenant shall cause Insurer to issue an endorsement to any
      policy Tenant procures in satisfaction of its obligations in this paragraph
      providing fresh per occurrence limits or fresh aggregate limits for each Leased
      Premises leased under this Master Lease and listing as Additional Insured the
      parties described below in Paragraph 4.

     

    4.     Additional
      Insureds are Wal-Mart Stores, Inc., its Subsidiaries and its Affiliates, and
      the
      directors, officers, shareholders, employees, agents, and representatives,
      and
      the respective successors and assigns of each, and any party Landlord has a
      contractual obligation to indemnify for Claims in connection with the Store
      or
      the Leased Premises.

     

    5.     This
      Appendix-2 attaches to and incorporates into the Master Lease Agreement as
      part
      of the entire agreement between Landlord and Tenant, as set forth in Section
      19.3 of the Master Lease

     

    
      
        ***Confidential
          treatment requested.

        
        

      

      
        Appendix-1-48

        
        

      

      
        
        

      

    

    CONFIDENTIAL
      TREATMENT REQUESTED FOR PORTIONS OF THIS DOCUMENT.  PORTIONS FOR WHICH
      CONFIDENTIAL TREATMENT IS REQUESTED ARE DENOTED WITH
      BRACKETS.

    

    Tenant:
      __________

     

    Agreement.  All
      capitalized terms used in this Appendix-2 have the meanings set forth in this
      Master Lease, unless otherwise specifically stated in this
      Appendix-2.  In the event of conflict between the Master Lease
      Agreement and any other document on the subject matters set forth in this
      Appendix-2, the terms of this Appendix-2 control.

     

    [signature
      page to follow]

     

    
      
        ***Confidential
          treatment requested.

        
        

      

      
        Appendix-2-49

        
        

      

      
        
        

      

    

    CONFIDENTIAL
      TREATMENT REQUESTED FOR PORTIONS OF THIS DOCUMENT.  PORTIONS FOR WHICH
      CONFIDENTIAL TREATMENT IS REQUESTED ARE DENOTED WITH
      BRACKETS.

    

    Tenant:
      __________

     

    Signed:

    

    
      	
              Witness:

            	 	
              Landlord:  Wal-Mart
                Stores, Inc.  

            	 
	 	 	 	 	 	 
	
               

            	 	
               

            	 	
               

            	 
	 	 	
              Taylor
                C. Smith

            	 	
              Date

            	 
	 	 	
              Wal-Mart
                Stores, Inc.

            	 	 	 
	
               

            	 	 	 	 	 
	 	 	 	 	 	 
	
              Witness:

            	 	
              Landlord:  Wal-Mart
                Stores East, LP  

            	 
	 	 	 	 	 	 
	
               

            	 	
               

            	 	
               

            	 
	 	 	
              Taylor
                C. Smith

            	 	
              Date

            	 
	 	 	
              Wal-Mart
                Stores East, LP

            	 	 	 
	
               

            	 	 	 	 	 
	 	 	 	 	 	 
	
              Witness:

            	 	
              Landlord:  Wal-Mart
                Stores Texas, LP  

            	 
	 	 	 	 	 	 
	
               

            	 	
               

            	 	
               

            	 
	 	 	
              Taylor
                C. Smith

            	 	
              Date

            	 
	 	 	
              Wal-Mart
                Stores Texas, LP

            	 	 	 
	
               

            	 	 	 	 	 
	 	 	 	 	 	 
	
              Witness:

            	 	
              Landlord:  Wal-Mart Louisiana,
                LLC  

            	 
	 	 	 	 	 	 
	
               

            	 	
               

            	 	
               

            	 
	 	 	
              Taylor
                C. Smith

            	 	
              Date

            	 
	 	 	
              Wal-Mart Louisiana,
                LLC

            	 	 	 
	
               

            	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
              Signed:

            	 	 	 	 	 
	 	 	 	 	 	 
	
              Witness:

            	 	
              Tenant:  Portrait
                Corporation of America, Inc.  

            	 
	 	 	 	 	 	 
	
               

            	 	
               

            	 	
               

            	 
	 	 	
              Signature

            	 	
              Date

            	 
	 	 	 	 	 	 
	
               

            	 	
               

            	 	 	 
	 	 	
              Printed
                Name

            	 	 	 
	 	 	 	 	 	 
	 	 	
               

            	 	 	 
	 	 	
              Title

            	 	 	 

    

     

    Appendix-2-50exh101.htm

     

    Exhibit
      10.1

    

    EXECUTION
      COPY

    

    

    U.S.
      $300,000,000

    

    CREDIT
      AGREEMENT

    

    Dated
      as
      of August 24, 2007

    

    Among

    

    THE
      HERSHEY COMPANY,

    

    as
      Borrower,

    

    and

    

    THE
      INITIAL LENDERS NAMED HEREIN,

    

    as
      Initial Lenders,

    

    and

    

    CITIBANK,
      N.A.,

    

    as
      Administrative Agent,

    

    and

    

    BANK
      OF
      AMERICA, N.A.,

    

    as
      Syndication Agent,

    

    and

    

    UBS
      LOAN
      FINANCE LLC,

    

    as
      Documentation Agent,

    

    and

    

    CITIGROUP
      GLOBAL MARKETS INC.,

    

    and

    

    BANC
      OF
      AMERICA SECURITIES LLC,

    

    as
      Joint Lead Arrangers and Joint Book
Managers,

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

    

    
      	
              ARTICLE
                I DEFINITIONS AND ACCOUNTING TERMS

            
	 	 	 
	
              SECTION
                1.01

            	
              Certain
                Defined Terms

            	
              1

            
	 	 	 
	
              SECTION
                1.02

            	
              Computation
                of Time Periods

            	
              13

            
	 	 	 
	
              SECTION
                1.03

            	
              Accounting
                Terms

            	
              13

            
	 	 	 
	
              ARTICLE
                II AMOUNTS AND TERMS OF THE ADVANCES

            
	 	 	 
	
              SECTION
                2.01

            	
              The
                Revolving Credit Advances

            	
              13

            
	 	 	 
	
              SECTION
                2.02

            	
              Making
                the Revolving Credit Advances

            	
              14

            
	 	 	 
	
              SECTION
                2.03

            	
              The
                Competitive Bid Advances

            	
              15

            
	 	 	 
	
              SECTION
                2.04

            	
              Fees

            	
              19

            
	 	 	 
	
              SECTION
                2.05

            	
              Termination
                or Reduction of the Commitments

            	
              19

            
	 	 	 
	
              SECTION
                2.06

            	
              Repayment
                of Revolving Credit Advances

            	
              20

            
	 	 	 
	
              SECTION
                2.07

            	
              Interest
                on Revolving Credit Advances

            	
              20

            
	 	 	 
	
              SECTION
                2.08

            	
              Interest
                Rate Determination

            	
              21

            
	 	 	 
	
              SECTION
                2.09

            	
              Optional
                Conversion of Revolving Credit Advances

            	
              22

            
	 	 	 
	
              SECTION
                2.10

            	
              Optional
                Prepayments of Revolving Credit Advances

            	
              23

            
	 	 	 
	
              SECTION
                2.11

            	
              Increased
                Costs

            	
              23

            
	 	 	 
	
              SECTION
                2.12

            	
              Illegality

            	
              24

            
	 	 	 
	
              SECTION
                2.13

            	
              Payments
                and Computations

            	
              25

            
	 	 	 
	
              SECTION
                2.14

            	
              Taxes

            	
              25

            
	 	 	 
	
              SECTION
                2.15

            	
              Sharing
                of Payments, Etc.

            	
              27

            
	 	 	 
	
              SECTION
                2.16

            	
              Use
                of Proceeds

            	
              28

            
	 	 	 
	
              SECTION
                2.17

            	
              Mandatory
                Assignment by a Lender; Mitigation

            	
              28

            
	 	 	 
	
              SECTION
                2.18

            	
              Evidence
                of Debt

            	
              29

            
	 	 	 
	
              ARTICLE
                III CONDITIONS TO EFFECTIVENESS AND
                LENDING

            

    

    

    
      
        i

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 
	 	 
	
              SECTION
                3.01

            	
              Conditions
                Precedent to Effectiveness of Sections 2.01 and 2.03

            	
              29

            
	 	 	 
	
              SECTION
                3.02

            	
              Initial
                Borrowing of Each Designated Subsidiary

            	
              31

            
	 	 	 
	
              SECTION
                3.03

            	
              Conditions
                Precedent to Each Revolving Credit Borrowing

            	
              32

            
	 	 	 
	
              SECTION
                3.04

            	
              Conditions
                Precedent to Each Competitive Bid Borrowing

            	
              32

            
	 	 	 
	
              SECTION
                3.05

            	
              Determinations
                Under Section 3.01

            	
              33

            
	 	 	 
	
              ARTICLE
                IV REPRESENTATIONS AND WARRANTIES

            
	 	 	 
	
              SECTION
                4.01

            	
              Representations
                and Warranties of the Company

            	
              33

            
	 	 	 
	
              ARTICLE
                V COVENANTS OF THE COMPANY

            
	 	 	 
	
              SECTION
                5.01

            	
              Affirmative
                Covenants

            	
              36

            
	 	 	 
	
              SECTION
                5.02

            	
              Negative
                Covenants

            	
              39

            
	 	 	 
	
              SECTION
                5.03

            	
              Financial
                Covenant

            	
              40

            
	 	 	 
	
              ARTICLE
                VI EVENTS OF DEFAULT

            
	 	 	 
	
              SECTION
                6.01

            	
              Events
                of Default

            	
              40

            
	 	 	 
	
              ARTICLE
                VII GUARANTY

            
	 	 	 
	
              SECTION
                7.01

            	
              Guaranty

            	
              43

            
	 	 	 
	
              SECTION
                7.02

            	
              Guaranty
                Absolute

            	
              43

            
	 	 	 
	
              SECTION
                7.03

            	
              Waivers
                and Acknowledgements

            	
              44

            
	 	 	 
	
              SECTION
                7.04

            	
              Subrogation

            	
              44

            
	 	 	 
	
              SECTION
                7.05

            	
              Continuing
                Guaranty; Assignments Under the Credit Agreement

            	
              45

            
	 	 	 
	
              SECTION
                7.06

            	
              No
                Stay

            	
              45

            
	 	 	 
	
              ARTICLE
                VIII THE AGENTS

            
	 	 	 
	
              SECTION
                8.01

            	
              Authorization
                and Action

            	
              45

            
	 	 	 
	
              SECTION
                8.02

            	
              Agent’s
                Reliance, Etc.

            	
              46

            
	 	 	 
	
              SECTION
                8.03

            	
              Citibank
                and Affiliates

            	
              46

            
	 	 	 
	
              SECTION
                8.04

            	
              Lender
                Credit Decision

            	
              47

            

    

    

    
      
        ii

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	 	 
	
              SECTION
                8.05

            	
              Indemnification

            	
              47

            
	 	 	 
	
              SECTION
                8.06

            	
              Successor
                Agent

            	
              47

            
	 	 	 
	
              ARTICLE
                IX MISCELLANEOUS

            
	 	 	 
	
              SECTION
                9.01

            	
              Amendments,
                Etc.

            	
              48

            
	 	 	 
	
              SECTION
                9.02

            	
              Notices,
                Etc.

            	
              48

            
	 	 	 
	
              SECTION
                9.03

            	
              No
                Waiver; Remedies

            	
              49

            
	 	 	 
	
              SECTION
                9.04

            	
              Costs
                and Expenses

            	
              49

            
	 	 	 
	
              SECTION
                9.05

            	
              Right
                of Set-off

            	
              51

            
	 	 	 
	
              SECTION
                9.06

            	
              Binding
                Effect

            	
              51

            
	 	 	 
	
              SECTION
                9.07

            	
              Assignments,
                Designations and Participations

            	
              51

            
	 	 	 
	
              SECTION
                9.08

            	
              Designated
                Subsidiaries

            	
              54

            
	 	 	 
	
              SECTION
                9.09

            	
              Confidentiality

            	
              55

            
	 	 	 
	
              SECTION
                9.10

            	
              Governing
                Law

            	
              56

            
	 	 	 
	
              SECTION
                9.11

            	
              Execution
                in Counterparts

            	
              56

            
	 	 	 
	
              SECTION
                9.12

            	
              Jurisdiction,
                Etc.

            	
              56

            
	 	 	 
	
              SECTION
                9.13

            	
              Patriot
                Act

            	
              57

            

    

    
      
        iii

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                SCHEDULES

              
	 	 	 
	
                Schedule
                  I

              	
                -

              	
                List
                  of Applicable Lending Offices

              
	 	 	 
	
                Schedule
                  3.01(b)

              	
                -

              	
                Disclosed
                  Litigation

              
	 	 	 
	
                Schedule
                  4.01(c)

              	
                -

              	
                Required
                  Authorizations and Approvals

              
	 	 	 
	
                EXHIBITS

              
	 	 	 
	
                Exhibit
                  A-1

              	
                -

              	
                Form
                  of Revolving Credit Note

              
	 	 	 
	
                Exhibit
                  A-2

              	
                -

              	
                Form
                  of Competitive Bid Note

              
	 	 	 
	
                Exhibit
                  B-1

              	
                -

              	
                Form
                  of Notice of Revolving Credit Borrowing

              
	 	 	 
	
                Exhibit
                  B-2

              	
                -

              	
                Form
                  of Notice of Competitive Bid Borrowing

              
	 	 	 
	
                Exhibit
                  C

              	
                -

              	
                Form
                  of Assignment and Acceptance

              
	 	 	 
	
                Exhibit
                  D

              	
                -

              	
                [Reserved]

              
	 	 	 
	
                Exhibit
                  E

              	
                -

              	
                Form
                  of Designation Letter

              
	 	 	 
	
                Exhibit
                  F

              	
                -

              	
                Form
                  of Acceptance by Process Agent

              
	 	 	 
	
                Exhibit
                  G

              	
                -

              	
                Form
                  of Opinion of Burton H. Snyder, Senior Vice President, General
                  Counsel and
                  Secretary of the Company

              
	 	 	 
	
                Exhibit
                  H

              	
                -

              	
                Form
                  of Opinion of Counsel to a Designated
                  Subsidiary

              

      

      
        
          iv

        

        
          
          

          
            

          

        

        
          
          

        

      

    CREDIT
      AGREEMENT

     

    Dated
      as
      of August 24, 2007

     

    THE
      HERSHEY COMPANY, a Delaware corporation (the "Company"), the banks,
      financial institutions and other institutional lenders (the "Initial
      Lenders") listed on the signature pages hereof, CITIBANK, N.A.
      ("Citibank"), as administrative agent (the "Agent") for the
      Lenders (as hereinafter defined), BANK OF AMERICA, N.A., as syndication agent,
      UBS LOAN FINANCE LLC, as documentation agent, and CITIGROUP GLOBAL MARKETS
      INC.
      and BANC OF AMERICA SECURITIES LLC, as joint lead arrangers and joint book
      managers (the "Arrangers"), agree as follows:

     

    ARTICLE
      I

     

    DEFINITIONS
      AND ACCOUNTING TERMS

     

    SECTION
      1.01.  Certain
      Defined Terms.  As used in
      this Agreement, the following terms shall have the following meanings (such
      meanings to be equally applicable to both the singular and plural forms of
      the
      terms defined):

     

    "Advance"
      means a Revolving Credit Advance or a Competitive Bid Advance.

     

    "Affiliate"
      means, as to any Person, any other Person that, directly or indirectly,
      controls, is controlled by or is under common control with such Person or is
      a
      director or officer of such Person.  For purposes of this definition,
      the term "control" (including the terms "controlling", "controlled by" and
      "under common control with") of a Person means the possession, direct or
      indirect, of the power to vote 5% or more of the Voting Stock of such Person
      or
      to direct or cause the direction of the management and policies of such Person,
      whether through the ownership of Voting Stock, by contract or
      otherwise.

     

    "Agent's
      Account" means the account of the Agent maintained by the Agent at Citibank
      with its office at Two Penn's Way, New Castle, Delaware 19720, Account
      No. 36852248, Attention:  Bank Loan Syndications.

     

    "Applicable
      Lending Office" means, with respect to each Lender, such Lender's Domestic
      Lending Office in the case of a Base Rate Advance and such Lender's Eurodollar
      Lending Office in the case of a Eurodollar Rate Advance and, in the case of
      a
      Competitive Bid Advance, the office of such Lender notified by such Lender
      to
      the Agent as its Applicable Lending Office with respect to such Competitive
      Bid
      Advance.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        2

      

    

    "Applicable
      Margin" means (a) for Base Rate Advances, 0% per annum and (b) for
      Eurodollar Rate Advances, as of any date, a percentage per annum determined
      by
      reference to the Level in effect on such date as set forth below:

     

    
      
        	
                Level

              	
                Applicable
                  Margin for Eurodollar

                Rate
                  Advances

              
	
                Level
                  1

              	
                0.110%

              
	
                Level
                  2

              	
                0.135%

              
	
                Level
                  3

              	
                0.150%

              
	
                Level
                  4

              	
                0.190%

              
	
                Level
                  5

              	
                0.270%

              
	
                Level
                  6

              	
                0.350%

              

      

       

    

    "Applicable
      Percentage" means, as of any date, a percentage per annum determined by
      reference to the Level in effect on such date as set forth below:

     

    
      	
              Level

            	
              Applicable

              Percentage

            
	
              Level
                1

            	
              0.040%

            
	
              Level
                2

            	
              0.040%

            
	
              Level
                3

            	
              0.050%

            
	
              Level
                4

            	
              0.060%

            
	
              Level
                5

            	
              0.080%

            
	
              Level
                6

            	
              0.100%

            

    

     

    "Applicable
      Utilization Fee" means, as of any date that the aggregate Advances exceed
      50% of the aggregate Commitments, a percentage per annum determined by reference
      to the Level in effect on such date as set forth below:

     

    
      
        	
                Level

              	
                Applicable

                Utilization
                  Fee

              
	
                Level
                  1

              	
                0.025%

              
	
                Level
                  2

              	
                0.025%

              
	
                Level
                  3

              	
                0.050%

              
	
                Level
                  4

              	
                0.050%

              
	
                Level
                  5

              	
                0.100%

              
	
                Level
                  6

              	
                0.100%

              

      

    "Assignment
      and Acceptance" means an assignment and acceptance entered into by a Lender
      and an Eligible Assignee, and accepted by the Agent, in substantially the form
      of Exhibit C hereto.

     

    "Base
      Rate" means a fluctuating interest rate per annum in effect from time to
      time, which rate per annum shall at all times be equal to the higher
      of:

    
      
        
          
            
              
                
                  
                  

                

                
                  
                  

                  
                    

                  

                

                
                  3

                

              

            

                  

            
              (a)  the
                rate
                of interest announced publicly by Citibank in New York, New York, from
                time to time, as Citibank's base rate; and

               

              (b)  1/2
                of
                one percent per annum above the Federal Funds
                Rate.

            

          

        

      

    

     

    "Base
      Rate Advance" means a Revolving Credit Advance that bears interest as
      provided in Section 2.07(a)(i).

     

    "Borrower"
      means the Company or any Designated Subsidiary, as the context
      requires.

     

    "Borrowing"
      means a Revolving Credit Borrowing or a Competitive Bid Borrowing.

     

    "Business
      Day" means a day of the year on which banks are not required or authorized
      by law to close in New York City and, if the applicable Business Day
      relates to any Eurodollar Rate Advance or LIBO Rate Advance, on which dealings
      are carried on in the London interbank market.

     

    "Change
      of Control" means a change in the voting power of Hershey Trust Company, as
      trustee for the Milton Hershey School (the "Hershey Trust"), such that
      either (A) (i) it no longer controls a majority of the voting power of
      the Company's Voting Stock and (ii) at the same time, another Person or
      group of Persons within the meaning of Section 13 or 14 of the Securities
      Exchange Act of 1934, as amended, controls a percentage of the voting power
      of
      the Company's Voting Stock in excess of the percentage controlled by the Hershey
      Trust or (B) it no longer controls at least 30% of the voting power of the
      Company's Voting Stock.

     

    "Commitment"
      has the meaning specified in Section 2.01.

     

    "Company
      Information" has the meaning specified in Section 9.09.

     

    "Competitive
      Bid Advance" means an advance by a Lender to any Borrower as part of a
      Competitive Bid Borrowing resulting from the competitive bidding procedure
      described in Section 2.03 and refers to a Fixed Rate Advance or a LIBO Rate
      Advance.

     

    "Competitive
      Bid Borrowing" means a borrowing consisting of simultaneous Competitive Bid
      Advances from each of the Lenders whose offer to make one or more Competitive
      Bid Advances as part of such borrowing has been accepted under the competitive
      bidding procedure described in Section 2.03.

     

    "Competitive
      Bid Note" means a promissory note of any Borrower payable to the order of
      any Lender, in substantially the form of Exhibit A-2 hereto, evidencing the
      indebtedness of such Borrower to such Lender resulting from a Competitive Bid
      Advance made by such Lender to such Borrower.

     

    "Competitive
      Bid Reduction" has the meaning specified in Section 2.01.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        4

      

    

    "Consolidated"
      refers to the consolidation of accounts in accordance with GAAP.

     

    "Consolidated
      Interest Expense" means, for any period with respect to the Company and its
      Subsidiaries, net interest expense plus capitalized interest for such
      period, in each case determined on a Consolidated basis in accordance with
      GAAP.

     

    "Consolidated
      Net Interest Expense" means, for any period with respect to the Company and
      its Subsidiaries, interest expense minus capitalized interest and
      interest income for such period, in each case determined on a Consolidated
      basis
      in accordance with GAAP.

     

    "Convert",
      "Conversion" and "Converted" each refers to a conversion of
      Revolving Credit Advances of one Type into Revolving Credit Advances of the
      other Type pursuant to Section 2.08 or 2.09.

     

    "Debt"
      means, with respect to any Person:  (a) indebtedness for borrowed
      money, (b) obligations evidenced by bonds, debentures, notes or other similar
      instruments, (c) obligations to pay the deferred purchase price of property
      or
      services (other than trade payables incurred in the ordinary course of
      business), (d) obligations as lessee under leases which shall have been or
      should be, in accordance with GAAP, recorded as capital leases, (e) all
      obligations, contingent or otherwise, of such Person in respect of acceptances,
      letters of credit (other than trade letters of credit) or similar extensions
      of
      credit and (f) obligations under direct or indirect guaranties in respect of,
      and obligations, contingent or otherwise, to purchase or otherwise acquire,
      or
      otherwise to assure a creditor against loss in respect of, indebtedness or
      obligations of any other Person of the kinds referred to in clauses (a) through
      (d) above.

     

    "Default"
      means any Event of Default or any event that would constitute an Event of
      Default but for the requirement that notice be given or time elapse or
      both.

     

    "Designated
      Subsidiary" means any corporate Subsidiary of the Company designated for
      borrowing privileges under this Agreement pursuant to Section 9.08.

     

    "Designation
      Letter" means, with respect to any Designated Subsidiary, a letter in the
      form of Exhibit E hereto signed by such Designated Subsidiary and the
      Company.

     

    "Disclosed
      Litigation" has the meaning specified in Section 3.01(b).

     

    "Domestic
      Lending Office" means, with respect to any Initial Lender, the office of
      such Lender specified as its "Domestic Lending Office" opposite its name on
      Schedule I hereto or, with respect to any other Lender, the office of such
      Lender specified as its "Domestic Lending Office" in the Assignment and
      Acceptance pursuant to which it became a Lender, or such other office of such
      Lender as such Lender may from time to time specify to the Company and the
      Agent.

     

    "Effective
      Date" has the meaning specified in Section 3.01.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        5

      

    

    "Eligible
      Assignee" means (a) a Lender or any Affiliate of a Lender which is
      principally engaged in the commercial banking business, and (b) any bank or
      other financial institution, or any other Person, that has been approved in
      writing by the Company (so long as no Event of Default has occurred and is
      continuing) and the Agent as an Eligible Assignee for purposes of this
      Agreement; provided, however, that neither the Company's nor the
      Agent's approval shall be unreasonably withheld; and provided
further, however, that the Company (whether or not an Event of
      Default has occurred and is continuing) may withhold its approval if the Company
      reasonably believes that an assignment to such Eligible Assignee pursuant to
      Section 9.07 will result in the incurrence of increased costs payable by any
      Borrower pursuant to Section 2.11 or 2.14.

     

    "Environmental
      Action" means any administrative, regulatory or judicial action, suit,
      demand, demand letter, claim, notice, investigation, proceeding, consent order
      or consent agreement relating to any Environmental Law, Environmental Permit
      or
      Hazardous Materials or arising from alleged injury to health, safety or the
      environment.

     

    "Environmental
      Law" means any federal, state, local or foreign statute, law, ordinance,
      rule, regulation, code, order, judgment, decree or judicial or agency
      interpretation, policy or guidance relating to pollution or protection of the
      environment, health, safety or natural resources, including, without limitation,
      those relating to the use, handling, transportation, treatment, storage,
      disposal, release or discharge of Hazardous Materials.

     

    "Environmental
      Permit" means any permit, approval, identification number, license or other
      authorization required under any Environmental Law.

     

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

     

    "ERISA
      Affiliate" means any Person that for purposes of Title IV of ERISA is a
      member of the Company's controlled group, or under common control with the
      Company, within the meaning of Section 414 of the Internal Revenue
      Code.

     

    "ERISA
      Event" means (a) (i) the occurrence of a reportable event, within the
      meaning of Section 4043 of ERISA, with respect to any Plan unless the
      30-day notice requirement with respect to such event has been waived by the
      PBGC, or (ii) the requirements of subsection (1) of Section 4043(b) of ERISA
      (without regard to subsection (2) of such Section) are met with a contributing
      sponsor, as defined in Section 4001(a)(13) of ERISA, of a Plan, and an event
      described in paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of
      ERISA is reasonably expected to occur with respect to such Plan within the
      following 30 days; (b) the application for a minimum funding waiver with
      respect to a Plan; (c) the provision by the administrator of any Plan of a
      notice of intent to terminate such Plan pursuant to Section 4041(a)(2) of
      ERISA (including any such notice with respect to a plan amendment referred
      to in
      Section 4041(e) of ERISA); (d) the cessation of operations at a
      facility of the Company or any ERISA affiliate in the circumstances described
      in
      Section 4062(e) of ERISA; (e) the withdrawal by the

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        6

      

    

    Company
      or any ERISA Affiliate from a Multiple Employer Plan during a plan year for
      which it was a substantial employer, as defined in Section 4001(a)(2) of
      ERISA; (f) the conditions for the imposition of a lien under
      Section 302(f) of ERISA shall have been met with respect to any Plan;
      (g) the adoption of an amendment to a Plan requiring the provision of
      security to such Plan pursuant to Section 307 of ERISA; or (h) the
      institution by the PBGC of proceedings to terminate a Plan pursuant to
      Section 4042 of ERISA, or the occurrence of any event or condition
      described in Section 4042 of ERISA that constitutes grounds for the
      termination of, or the appointment of a trustee to administer, such
      Plan.

     

    "Eurocurrency
      Liabilities" has the meaning assigned to that term in Regulation D of
      the Board of Governors of the Federal Reserve System, as in effect from time
      to
      time.

     

    "Eurodollar
      Lending Office" means, with respect to any Initial Lender, the office of
      such Lender specified as its "Eurodollar Lending Office" opposite its name
      on
      Schedule I hereto or, with respect to any other Lender, the office of such
      Lender specified as its "Eurodollar Lending Office" in the Assignment and
      Acceptance pursuant to which it became a Lender (or, if no such office is
      specified, its Domestic Lending Office), or such other office of such Lender
      as
      such Lender may from time to time specify to the Company and the
      Agent.

     

    "Eurodollar
      Rate" means, for any Interest Period for each Eurodollar Rate Advance
      comprising part of the same Revolving Credit Borrowing, an interest rate per
      annum equal to the rate per annum (rounded upward to the nearest whole multiple
      of 1/16 of 1% per annum) appearing on Moneyline Telerate Markets Page 3750
      (or
      any successor page) as the London interbank offered rate for deposits in U.S.
      dollars at approximately 11:00 A.M. (London time) two Business Days prior to
      the
      first day of such Interest Period for a term comparable to such Interest Period
      or, if for any reason such rate is not available, the average (rounded
      upward to the nearest whole multiple of 1/16 of 1% per annum, if such average
      is
      not such a multiple) of the rate per annum at which deposits in U.S. dollars
      are
      offered by the principal office of each of the Reference Banks in London,
      England to prime banks in the London interbank market at 11:00 A.M. (London
      time) two Business Days before the first day of such Interest Period in an
      amount substantially equal to such Reference Bank's Eurodollar Rate Advance
      comprising part of such Revolving Credit Borrowing to be outstanding during
      such
      Interest Period and for a period equal to such Interest Period.  If
      Moneyline Telerate Markets Page 3750 (or any successor page) is unavailable,
      the
      Eurodollar Rate for any Interest Period for each Eurodollar Rate Advance
      comprising part of the same Revolving Credit Borrowing shall be determined
      by
      the Agent on the basis of applicable rates furnished to and received by the
      Agent from the Reference Banks two Business Days before the first day of such
      Interest Period, subject, however, to the provisions of
      Section 2.08.

     

    "Eurodollar
      Rate Advance" means a Revolving Credit Advance that bears interest as
      provided in Section 2.07(a)(ii).

     

    "Eurodollar
      Rate Reserve Percentage" with respect to any Lender for any Interest Period
      for all Eurodollar Rate Advances or LIBO Rate Advances comprising part of
      the

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        7

      

    

    same
      Borrowing means the reserve percentage applicable during such Interest Period
      (or, if more than one such percentage shall be so applicable, the daily average
      of such percentages for those days in such Interest Period during which any
      such
      percentage shall be so applicable) under regulations issued from time to time
      by
      the Board of Governors of the Federal Reserve System (or any successor) for
      determining the reserve requirement (including, without limitation, any
      emergency, supplemental or other marginal reserve requirement) actually imposed
      on such Lender with respect to liabilities or assets consisting of or including
      Eurocurrency Liabilities (or with respect to any other category of liabilities
      that includes deposits by reference to which the interest rate on Eurodollar
      Rate Advances or LIBO Rate Advances is determined) having a term equal to such
      Interest Period.

     

    "Events
      of Default" has the meaning specified in Section 6.01.

     

    "Excluded
      Taxes" has the meaning specified in Section 2.14(a).

     

    "Federal
      Funds Rate" means, for any period, a fluctuating interest rate per annum
      equal for each day during such period to the weighted average of the rates
      on
      overnight Federal funds transactions with members of the Federal Reserve System
      arranged by Federal funds brokers, as published for such day (or, if such day
      is
      not a Business Day, for the next preceding Business Day) by the Federal Reserve
      Bank of New York, or, if such rate is not so published for any day that is
      a Business Day, the average of the quotations for such day on such transactions
      received by the Agent from three Federal funds brokers of recognized standing
      selected by it.

     

    "Fixed
      Rate Advances" has the meaning specified in
      Section 2.03(a)(i).

     

    "GAAP"
      has the meaning specified in Section 1.03.

     

    "Guaranty"
      means the guaranty made by the Company to the Lenders and the Agent pursuant
      to
      Article VII.

     

    "Guaranteed
      Obligations" has the meaning specified in Section 7.01(a).

     

    "Hazardous
      Materials" means (a) petroleum and petroleum products, byproducts or
      breakdown products, radioactive materials, asbestos-containing materials,
      polychlorinated biphenyls and radon gas and (b) any other chemicals, materials
      or substances designated, classified or regulated as hazardous or toxic or
      as a
      pollutant or contaminant under any Environmental Law.

     

    "Insufficiency"
      means, with respect to any Plan, the amount, if any, of its unfunded benefit
      liabilities, as defined in Section 4001(a)(18) of ERISA.

     

    "Interest
      Period" means, for each Eurodollar Rate Advance comprising part of the same
      Revolving Credit Borrowing and each LIBO Rate Advance comprising part of the
      same Competitive Bid Borrowing, the period commencing on the date of such
      Eurodollar Rate Advance or LIBO Rate Advance or the date of the Conversion
      of
      any Base Rate Advance into such Eurodollar Rate Advance and ending on the last
      day of the period

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        8

      

    

    selected
      by the Borrower that requested such Borrowing pursuant to the provisions below
      and, thereafter, with respect to Eurodollar Rate Advances, each subsequent
      period commencing on the last day of the immediately preceding Interest Period
      and ending on the last day of the period selected by such Borrower pursuant
      to
      the provisions below.  The duration of each such Interest Period shall
      be one, two, three or six months, as the applicable Borrower may, upon notice
      received by the Agent not later than 11:00 A.M. (New York City time)
      on the third Business Day prior to the first day of such Interest Period,
      select; provided, however, that:

     

    (i)  such
      Borrower may not select any Interest Period that ends after the Termination
      Date;

     

    (ii)  Interest
      Periods commencing on the same date for Eurodollar Rate Advances comprising
      part
      of the same Revolving Credit Borrowing or for LIBO Rate Advances comprising
      part
      of the same Competitive Bid Borrowing shall be of the same
      duration;

     

    (iii)  whenever
      the last day of any Interest Period would otherwise occur on a day other than
      a
      Business Day, the last day of such Interest Period shall be extended to occur
      on
      the next succeeding Business Day, provided, however, that, if such
      extension would cause the last day of such Interest Period to occur in the
      next
      following calendar month, the last day of such Interest Period shall occur
      on
      the next preceding Business Day; and

     

    (iv)  whenever
      the first day of any Interest Period occurs on a day of an initial calendar
      month for which there is no numerically corresponding day in the calendar month
      that succeeds such initial calendar month by the number of months equal to
      the
      number of months in such Interest Period, such Interest Period shall end on
      the
      last Business Day of such succeeding calendar month.

     

    "Internal
      Revenue Code" means the Internal Revenue Code of 1986, as amended from time
      to time, and the regulations promulgated and rulings issued
      thereunder.

     

    "Lenders"
      means, collectively, each of the banks, financial institutions and other
      institutional lenders listed on Schedule I hereto and each Eligible Assignee
      that shall become a party hereto pursuant to Section 9.07.

     

    "Level"
      means, as of any date, the lowest of Level 1, Level 2, Level 3,
      Level 4, Level 5 or Level 6 then applicable to the Public Debt
      Rating.

     

    "Level 1"
      means that either (a) S&P shall have assigned a rating of at least AA- or
      (b) Moody's shall have assigned a rating of at least Aa3.

     

    "Level 2"
      means that either (a) S&P shall have assigned a rating lower than AA- but at
      least A+ or (b) Moody's shall have assigned a rating lower than Aa3 but at
      least
      A1.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        9

      

    

    "Level 3"
      means that either (a) S&P shall have assigned a rating lower than A+ but at
      least A or (b) Moody's shall have assigned a rating lower than A1 but at least
      A2.

     

    "Level 4"
      means that either (a) S&P shall have assigned a rating lower than A but at
      least A- or (b) Moody's shall have assigned a rating lower than A2 but at least
      A3.

     

    "Level 5"
      means that either (a) S&P shall have assigned a rating lower than A- but at
      least BBB+ or (b) Moody's shall have assigned a rating lower than A3 but at
      least Baa1.

     

    "Level
      6" means that the Company has not met the criteria for Level 1, Level 2,
      Level 3, Level 4 and Level 5.

     

    "LIBO
      Rate" means, for any Interest Period for all LIBO Rate Advances comprising
      part of the same Competitive Bid Borrowing, an interest rate per annum equal
      to
      the rate per annum (rounded upward to the nearest whole multiple of 1/16 of
      1%
      per annum) appearing on Moneyline Telerate Markets Page 3750 (or any successor
      page) as the London interbank offered rate for deposits in U.S. dollars at
      approximately 11:00 A.M. (London time) two Business Days prior to the first
      day
      of such Interest Period for a term comparable to such Interest Period or, if
      for
      any reason such rate is not available, the average (rounded upward to the
      nearest whole multiple of 1/16 of 1% per annum, or if there is no nearest whole
      multiple of 1/16 of 1% per annum, then rounded upward to the nearest whole
      multiple of 1/16 of 1% per annum, if such average is not such a multiple) of
      the
      rate per annum at which deposits in U.S. dollars are offered by the principal
      office of each of the Reference Banks in London, England to prime banks in
      the
      London interbank market at 11:00 A.M. (London time) two Business Days
      before the first day of such Interest Period in an amount substantially equal
      to
      the amount that would be such Reference Bank's respective ratable share of
      such
      Borrowing if such Borrowing were to be a Revolving Credit Borrowing to be
      outstanding during such Interest Period and for a period equal to such Interest
      Period.  If Moneyline Telerate Markets Page 3750 (or any successor
      page) is unavailable, the LIBO Rate for any Interest Period for each LIBO Rate
      Advance comprising part of the same Competitive Bid Borrowing shall be
      determined by the Agent on the basis of applicable rates furnished to and
      received by the Agent from the Reference Banks two Business Days before the
      first day of such Interest Period, subject, however, to the
      provisions of Section 2.08.

     

    "LIBO
      Rate Advances" has the meaning specified in
      Section 2.03(a)(i).

     

    "Lien"
      means any mortgage, pledge, lien, security interest, conditional sale or other
      title retention agreement or other similar charge or encumbrance.

     

    "Majority
      Lenders" means at any time Lenders owed at least 51% of the then aggregate
      unpaid principal amount of the Revolving Credit Advances owing to Lenders,
      or,
      if no such principal amount is then outstanding, Lenders having at least 51%
      of
      the Commitments.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        10

      

    

    "Material
      Adverse Change" means any material adverse change in the business, financial
      condition, operations, performance or principal manufacturing properties of
      the
      Company and its Subsidiaries taken as a whole.

     

    "Material
      Adverse Effect" means a material adverse effect on (a) the business,
      financial condition, operations, performance or principal manufacturing
      properties of the Company and its Subsidiaries taken as a whole, (b) the
      rights and remedies of the Agent or the Lenders under this Agreement or any
      Note
      or (c) the ability of any Borrower to perform its obligations (other than
      payment obligations) under this Agreement or any Note.

     

    "Material
      Subsidiary" means, at any date of determination, a Subsidiary of the Company
      that, either individually or together with its Subsidiaries, taken as a whole,
      has total assets exceeding $300,000,000 on such date.

     

    "Moody's"
      means Moody's Investors Service, Inc., or its successor.

     

    "Multiemployer
      Plan" means a multiemployer plan, as defined in Section 4001(a)(3) of
      ERISA, to which the Company or any ERISA Affiliate is making or accruing an
      obligation to make contributions, or has within any of the preceding five plan
      years made or accrued an obligation to make contributions.

     

    "Multiple
      Employer Plan" means a single employer plan, as defined in
      Section 4001(a)(15) of ERISA, that (a) is maintained for employees of
      the Company or any ERISA Affiliate and at least one Person other than the
      Company and the ERISA Affiliates or (b) was so maintained and in respect of
      which the Company or any ERISA Affiliate could have liability under
      Section 4064 or 4069 of ERISA in the event such plan has been or were to be
      terminated.

     

    "Note"
      means a Revolving Credit Note or a Competitive Bid Note.

     

    "Notice
      of Revolving Credit Borrowing" has the meaning specified in
      Section 2.02(a).

     

    "Notice
      of Competitive Bid Borrowing" has the meaning specified in
      Section 2.03(a).

     

    "Other
      Taxes" has the meaning specified in Section 2.14(b).

     

    "PBGC"
      means the Pension Benefit Guaranty Corporation (or any successor).

     

    "Permitted
      Liens" means such of the following as to which no enforcement, collection,
      execution, levy or foreclosure proceeding shall have been
      commenced:  (a) Liens for taxes, assessments and governmental
      charges or levies to the extent not required to be paid under
      Section 5.01(b) hereof; (b) Liens imposed by law, such as
      materialmen's, mechanics', carriers', workmen's and repairmen's Liens and other
      similar Liens arising in the ordinary course of business; (c) pledges or
      deposits to secure obligations under workers' compensation laws or similar
      legislation or to secure public or

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        11

      

    

    statutory
      obligations; (d) easements, rights of way and other encumbrances on title
      to real property that do not render title to the property encumbered thereby
      unmarketable or materially adversely affect the use of such property for its
      present purposes; (e) Liens arising under leases or subleases granted to others
      that would not be reasonably likely to have a Material Adverse Effect on the
      Company and its Subsidiaries taken as a whole; (f) Liens granted in connection
      with any interest rate or foreign currency options, commodity contracts, futures
      or similar agreements entered into by the Company or any of its Subsidiaries
      in
      the ordinary course of business; and (g) Liens granted in connection with
      corporate-owned life insurance programs of the Company or any of its
      Subsidiaries.

     

    "Person"
      means an individual, partnership, corporation (including a business trust),
      joint stock company, trust, unincorporated association, limited liability
      company or other entity, or a government or any political subdivision or agency
      thereof.

     

    "Plan"
      means a Single Employer Plan or a Multiple Employer Plan.

     

    "Pre-Tax
      Income from Continuing Operations" means, for any period with respect to the
      Company and its Subsidiaries, net income (or net loss) from operations
      (determined without giving effect to extraordinary or non-recurring gains or
      losses) plus the sum of (a) Consolidated Net Interest Expense, (b) income
      tax expense and (c) non-recurring non-cash charges (including the cumulative
      effect of accounting changes, restructuring charges and gains or losses from
      the
      sale of businesses), in each case determined on a Consolidated basis in
      accordance with GAAP; provided, however, that the LIFO adjustment
      to the determination of Pre-Tax Income from Continuing Operations for purposes
      of the quarterly financial statements and the compliance certificate delivered
      pursuant to Section 5.01(h)(i) shall be made in accordance with the Company's
      best estimation.

     

    "Process
      Agent" has the meaning specified in Section 9.12(a).

     

    "Public
      Debt Rating" means, as of any date, the lowest rating that has been most
      recently and officially announced by either S&P or Moody's, as the case may
      be, for any class of non-credit enhanced long-term senior unsecured debt issued
      by the Company.  For purposes of the foregoing, (a) if only one
      of S&P and Moody's shall have in effect a Public Debt Rating for the
      Company, the Applicable Margin, the Applicable Percentage and the Applicable
      Utilization Fee shall be determined by reference to the available rating;
      (b) if neither S&P nor Moody's shall have in effect a Public Debt
      Rating for the Company, the Applicable Margin, the Applicable Percentage and
      the
      Applicable Utilization Fee will be set in accordance with Level 6 under the
      definition of "Applicable Margin", "Applicable Percentage" or
      "Applicable Utilization Fee", as the case may be; (c) if the ratings
      established by S&P and Moody's shall fall within different levels, the
      Applicable Margin, the Applicable Percentage and the Applicable Utilization
      Fee
      shall be based upon the higher rating, provided that if the lower of such
      ratings is more than one level below the higher of such ratings, the Applicable
      Margin, the Applicable Percentage and the Applicable Utilization Fee shall
      be
      determined by reference to the level that is one level above such lower rating;
      (d)  if any rating established by S&P or Moody's shall be changed, such
      change shall be effective as of the date on which such change is
      first

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        12

      

    

    announced
      publicly by the rating agency making such change (regardless of the effective
      date thereof); and (e) if S&P or Moody's shall change the basis on
      which ratings are established, each reference to the Public Debt Rating
      announced by S&P or Moody's, as the case may be, shall refer to the then
      equivalent rating by S&P or Moody's, as the case may be.

     

    "Reference
      Banks" means Citibank, Bank of America, N.A. and UBS AG, Stamford Branch,
      or, in the event that less than two of such Lenders remain Lenders hereunder
      at
      any time, any other commercial bank designated by the Company and approved
      by
      the Majority Lenders as constituting a "Reference Bank" hereunder.

     

    "Register"
      has the meaning specified in Section 9.07(d).

     

    "Revolving
      Credit Advance" means an advance by a Lender to any Borrower as part of a
      Revolving Credit Borrowing by such Borrower and refers to a Base Rate Advance
      or
      a Eurodollar Rate Advance (each of which shall be a "Type"
      of  Revolving Credit Advance).

     

    "Revolving
      Credit Borrowing" means a borrowing consisting of simultaneous Revolving
      Credit Advances of the same Type made by each of the Lenders pursuant to
      Section 2.01.

     

    "Revolving
      Credit Note" means a promissory note of any Borrower payable to the order of
      any Lender, delivered pursuant to a request made under 2.18(a) in substantially
      the form of Exhibit A-1 hereto, evidencing the aggregate indebtedness of
      such Borrower to such Lender resulting from the Revolving Credit Advances made
      by such Lender to such Borrower.

     

    "S&P"
      means Standard & Poor's Rating Services, a division of the McGraw-Hill
      Companies, Inc., or its successor.

     

    "Single
      Employer Plan" means a single employer plan, as defined in
      Section 4001(a)(15) of ERISA, that (a) is maintained for employees of
      the Company or any ERISA Affiliate and no Person other than the Company and
      the
      ERISA Affiliates or (b) was so maintained and in respect of which the
      Company or any ERISA Affiliate could have liability under Section 4069 of
      ERISA in the event such plan has been or were to be terminated.

     

    "Subsidiary"
      of any Person means any corporation, partnership, limited liability company,
      trust or estate of which (or in which) more than 50% of (a) the issued and
      outstanding capital stock having ordinary voting power to elect a majority
      of
      the Board of Directors of such corporation (irrespective of whether at the
      time
      capital stock of any other class or classes of such corporation shall or might
      have voting power upon the occurrence of any contingency), (b) the interest
      in the capital or profits of such limited liability company or partnership
      or
      (c) the beneficial interest in such trust or estate is at the time directly
      or indirectly owned or controlled by such Person, by such Person and one or
      more
      of its other Subsidiaries or by one or more of such Person's other
      Subsidiaries.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        13

      

    

    "Taxes"
      has the meaning specified in Section 2.14(a).

     

    "Termination
      Date" means the earlier of (a) August 22, 2008 or (b) the date of
      termination in whole of the Commitments pursuant to Section 2.05(a),
      2.05(b) or 6.01.

     

    "Voting
      Stock" means capital stock issued by a corporation, or equivalent interests
      in any other Person, the holders of which are ordinarily, in the absence of
      contingencies, entitled to vote for the election of directors (or persons
      performing similar functions) of such Person, even if the right so to vote
      has
      been suspended by the happening of such a contingency.

     

    "Withdrawal
      Liability" has the meaning specified in Part I of Subtitle E of
      Title IV of ERISA.

     

    SECTION
      1.02.  Computation
      of Time Periods.  In this Agreement in the computation of periods
      of time from a specified date to a later specified date, the word
      "from"  means "from and including" and the words "to" and "until" each
      mean "to but excluding".

     

    SECTION
      1.03.  Accounting
      Terms.  All accounting terms not specifically defined herein shall
      be construed in accordance with accounting principles generally accepted in
      the
      United States consistent with those applied in the preparation of the financial
      statements referred to in Section 4.01(e) ("GAAP").

     

    ARTICLE
      II

     

    AMOUNTS
      AND TERMS OF THE ADVANCES

     

    SECTION
      2.01.  The
      Revolving Credit Advances.  Each Lender severally agrees, on the
      terms and conditions hereinafter set forth, to make Revolving Credit Advances
      to
      any Borrower from time to time on any Business Day during the period from the
      Effective Date until the Termination Date in an aggregate amount for all
      Borrowers not to exceed at any time outstanding (a) the amount set forth
      opposite such Lender's name on Schedule I hereto or (b) if such Lender has
      entered into any Assignment and Acceptance, the amount set forth for such Lender
      in the Register maintained by the Agent pursuant to Section 9.07(d), in
      each case as such amount may be reduced pursuant to Section 2.05(a) or (b)
      (such Lender's "Commitment"), provided that the aggregate amount
      of the Commitments of the Lenders shall be deemed used from time to time to
      the
      extent of the aggregate amount of the Competitive Bid Advances then outstanding
      and such deemed use of the aggregate amount of the Commitments shall be
      allocated among the Lenders ratably according to their respective Commitments
      (such deemed use of the aggregate amount of the Commitments being a
      "Competitive Bid Reduction").  Each Revolving Credit Borrowing
      shall be in an aggregate amount of $5,000,000 or an integral multiple of
      $1,000,000 in excess thereof (or, if less, an aggregate amount equal to the
      amount by which the aggregate amount of a proposed Competitive Bid Borrowing
      requested by any Borrower exceeds the aggregate amount of Competitive Bid
      Advances offered to be made by the Lenders and accepted by such Borrower in
      respect of such Competitive Bid Borrowing, if such Competitive Bid Borrowing
      is
      made on the same date and by the same Borrower as such Revolving Credit
      Borrowing) and shall consist of Revolving Credit Advances of the same Type
      made
      on the same

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        14

      

    

    day
      by
      the Lenders ratably according to their respective Commitments.  Within
      the limits of each Lender's Commitment, any Borrower may borrow under this
      Section 2.01, prepay pursuant to Section 2.10 and reborrow under this
      Section 2.01.

     

    SECTION
      2.02.  Making
      the Revolving Credit Advances.  (a)  Each Revolving
      Credit Borrowing shall be made on notice, given not later than
      (i) 11:00 A.M. (New York City time) on the third Business Day
      prior to the date of the proposed Revolving Credit Borrowing in the case of
      a
      Revolving Credit Borrowing consisting of Eurodollar Rate Advances or (ii) 11:00
      A.M. (New York City time) on the day of the proposed Revolving Credit Borrowing
      in the case of a Revolving Credit Borrowing consisting of Base Rate Advances,
      by
      any Borrower to the Agent, which shall give to each Lender prompt notice thereof
      by telecopier.  Each such notice of a Revolving Credit Borrowing (a
      "Notice of Revolving Credit Borrowing") shall be by telephone, confirmed
      immediately in writing, or telecopier in substantially the form of
      Exhibit B-1 hereto, specifying therein the requested (w) date of such
      Revolving Credit Borrowing, (x) Type of Advances comprising such Revolving
      Credit Borrowing, (y) aggregate amount of such Revolving Credit Borrowing,
      and (z) in the case of a Revolving Credit Borrowing consisting of
      Eurodollar Rate Advances, initial Interest Period for each such Revolving Credit
      Advance.  Each Lender shall, before (i) in the case of a Eurodollar
      Rate Advance, 11:00 A.M. (New York City time) or (ii) in the case of a
      Base Rate Advance, 1:00 P.M. (New York City time) on the date of such Revolving
      Credit Borrowing, make available for the account of its Applicable Lending
      Office to the Agent at the Agent's Account, in same day funds, such Lender's
      ratable portion of such Revolving Credit Borrowing.  After the Agent's
      receipt of such funds and upon fulfillment of the applicable conditions set
      forth in Article III, the Agent will make such funds available to the
      Borrower requesting the Revolving Credit Borrowing at the Agent's address
      referred to in Section 9.02.

     

    (b)  Anything
      herein to the contrary notwithstanding, a Borrower may not select Eurodollar
      Rate Advances for any Revolving Credit Borrowing if the obligation of the
      Lenders to make Eurodollar Rate Advances shall then be suspended pursuant to
      Section 2.08 or 2.12.

     

    (c)  Each
      Notice of Revolving Credit Borrowing of any Borrower shall be irrevocable and
      binding on such Borrower.  In the case of any Revolving Credit
      Borrowing that the related Notice of Revolving Credit Borrowing specifies is
      to
      be comprised of Eurodollar Rate Advances, the Borrower requesting such Revolving
      Credit Borrowing shall indemnify each Lender, after receipt of a written request
      by such Lender setting forth in reasonable detail the basis for such request,
      against any loss, cost or expense actually incurred by such Lender as a result
      of any failure by such Borrower to fulfill on or before the date specified
      in
      such Notice of Revolving Credit Borrowing for such Revolving Credit Borrowing
      the applicable conditions set forth in Article III, including, without
      limitation, any loss (other than loss of anticipated profits), cost or expense
      actually incurred by reason of the liquidation or reemployment of deposits
      or
      other funds acquired by such Lender to fund the Revolving Credit Advance to
      be
      made by such Lender as part of such Revolving Credit Borrowing when such
      Revolving Credit Advance, as a result of such failure, is not made on such
      date.

     

    (d)  Unless
      the Agent shall have received notice from a Lender prior to the date of any
      Revolving Credit Borrowing comprised of Eurodollar Rate Advances or prior to
      the
      time of the proposed disbursement of any Revolving Credit Borrowing comprised
      of
      Base Rate

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        15

      

    

    Advances
      that such Lender will not make available to the Agent such Lender's ratable
      portion of such Revolving Credit Borrowing, the Agent may assume that such
      Lender has made such portion available to the Agent on the date of such
      Revolving Credit Borrowing in accordance with subsection (a) of this
      Section 2.02 and the Agent may, in reliance upon such assumption, make
      available to the Borrower requesting such Revolving Credit Borrowing on such
      date a corresponding amount.  If and to the extent that such Lender
      shall not have so made such ratable portion available to the Agent, such Lender
      and such Borrower severally agree to repay to the Agent forthwith on demand
      such
      corresponding amount together with interest thereon, for each day from the
      date
      such amount is made available to such Borrower until the date such amount is
      repaid to the Agent, at (i) in the case of such Borrower, the interest rate
      applicable at the time to Revolving Credit Advances comprising such Revolving
      Credit Borrowing and (ii) in the case of such Lender, the Federal Funds
      Rate.  If such Lender shall repay to the Agent such corresponding
      amount, such amount so repaid shall constitute such Lender's Revolving Credit
      Advance as part of such Revolving Credit Borrowing for purposes of this
      Agreement.

     

    (e)  The
      failure of any Lender to make the Revolving Credit Advance to be made by it
      as
      part of any Revolving Credit Borrowing shall not relieve any other Lender of
      its
      obligation, if any, hereunder to make its Revolving Credit Advance on the date
      of such Revolving Credit Borrowing, but no Lender shall be responsible for
      the
      failure of any other Lender to make the Revolving Credit Advance to be made
      by
      such other Lender on the date of any Revolving Credit Borrowing.

     

    SECTION
      2.03.  The
      Competitive Bid Advances.  (a)  Each Lender severally
      agrees that any Borrower may make Competitive Bid Borrowings under this
      Section 2.03 from time to time on any Business Day during the period from
      the date hereof until the date occurring 30 days prior to the Termination Date
      in the manner set forth below; provided that, following the making of
      each Competitive Bid Borrowing, the aggregate amount of the Advances then
      outstanding shall not exceed the aggregate amount of the Commitments of the
      Lenders (computed without regard to any Competitive Bid Reduction).

     

    (i)  A
      Borrower may request a Competitive Bid Borrowing under this Section 2.03 by
      delivering to the Agent, by telecopier, a notice of a Competitive Bid Borrowing
      (a "Notice of Competitive Bid Borrowing"), in substantially the form of
      Exhibit B-2 hereto, specifying therein the requested (u) date of such
      proposed Competitive Bid Borrowing, (v) aggregate amount of such proposed
      Competitive Bid Borrowing, (w) interest rate basis (LIBO Rate or fixed rate)
      to
      be offered by the Lenders, (x) in the case of a Competitive Bid Borrowing
      consisting of LIBO Rate Advances, Interest Period of each Competitive Bid
      Advance to be made as part of such Competitive Bid Borrowing, or in the case
      of
      a Competitive Bid Borrowing Consisting of Fixed Rate Advances, maturity date
      for
      repayment of each Fixed Rate Advance to be made as part of such Competitive
      Bid
      Borrowing (which maturity date may not be earlier than the date occurring 7
      days
      after the date of such Competitive Bid Borrowing or later than the earlier
      of
      (I) 180 days after the date of such Competitive Bid Borrowing and
      (II) the Termination Date), (y) interest payment date or dates
      relating thereto, and (z) other terms (if any) to be applicable to such
      Competitive Bid Borrowing, not later than 10:00 A.M. (New York City
      time) (A) at least one Business Day prior to the date of the proposed
      Competitive Bid Borrowing, if such Borrower shall specify in the Notice of
      Competitive

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        16

      

    

    Bid
      Borrowing that the rates of interest to be offered by the Lenders shall be
      fixed
      rates per annum (the Advances comprising any such Competitive Bid Borrowing
      being referred to herein as "Fixed Rate Advances") and (B) at least
      four Business Days prior to the date of the proposed Competitive Bid Borrowing,
      if such Borrower shall instead specify in the Notice of Competitive Bid
      Borrowing that the rates of interest to be offered by the Lenders are to be
      based on the LIBO Rate (the Advances comprising such Competitive Bid Borrowing
      being referred to herein as "LIBO Rate Advances").  Each Notice
      of Competitive Bid Borrowing of a Borrower shall be irrevocable and binding
      on
      such Borrower.  Any Notice of Competitive Bid Borrowing by a
      Designated Subsidiary shall be given to the Agent in accordance with the
      preceding sentence through the Company on behalf of such Designated
      Subsidiary.  The Agent shall in turn promptly notify each Lender of
      each request for a Competitive Bid Borrowing received by it from a Borrower
      by
      sending such Lender a copy of the related Notice of Competitive Bid
      Borrowing.

     

    (ii)  Each
      Lender may, if, in its sole discretion, it elects to do so, irrevocably offer
      to
      make one or more Competitive Bid Advances to the Borrower proposing the
      Competitive Bid Borrowing as part of such proposed Competitive Bid Borrowing
      at
      a rate or rates of interest specified by such Lender in its sole discretion,
      by
      notifying the Agent (which shall give prompt notice thereof to such Borrower),
      before 9:30 A.M. (New York City time) on the date of such proposed
      Competitive Bid Borrowing, in the case of a Competitive Bid Borrowing consisting
      of Fixed Rate Advances and before 10:00 A.M. (New York City time) three Business
      Days before the date of such proposed Competitive Bid Borrowing, in the case
      of
      a Competitive Bid Borrowing consisting of LIBO Rate Advances, of the minimum
      amount and maximum amount of each Competitive Bid Advance which such Lender
      would be willing to make as part of such proposed Competitive Bid Borrowing
      (which amounts may, subject to the proviso to the first sentence of this
      Section 2.03(a), exceed such Lender's Commitment, if any), the rate or
      rates of interest therefor and such Lender's Applicable Lending Office with
      respect to such Competitive Bid Advance; provided that if the Agent in
      its capacity as a Lender shall, in its sole discretion, elect to make any such
      offer, it shall notify such Borrower of such offer at least 30 minutes before
      the time and on the date on which notice of such election is to be given to
      the
      Agent by the other Lenders.  If any Lender shall elect not to make
      such an offer, such Lender shall so notify the Agent, before 10:00 A.M.
      (New York City time) on the date on which notice of such election is to be
      given to the Agent by the other Lenders, and such Lender shall not be obligated
      to, and shall not, make any Competitive Bid Advance as part of such Competitive
      Bid Borrowing; provided that the failure by any Lender to give such
      notice shall not cause such Lender to be obligated to make any Competitive
      Bid
      Advance as part of such proposed Competitive Bid Borrowing.

     

    (iii)  The
      Borrower proposing the Competitive Bid Borrowing shall, in turn, before
      10:30 A.M. (New York City time) on the date of such proposed
      Competitive Bid Borrowing, in the case of a Competitive Bid Borrowing consisting
      of Fixed Rate Advances and before 11:00 A.M. (New York City time)
      three Business Days before the date of such proposed Competitive Bid Borrowing,
      in the case of a Competitive Bid Borrowing consisting of LIBO Rate Advances,
      either:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        17

      

    

    (x)           cancel
      such Competitive Bid Borrowing by giving the Agent notice to that effect,
      or

     

    (y)           accept
      one or more of the offers made by any Lender or Lenders pursuant to paragraph
      (ii) above, in its sole discretion, by giving notice to the Agent of the amount
      of each Competitive Bid Advance (which amount shall be equal to or greater
      than
      the minimum amount, and equal to or less than the maximum amount, notified
      to
      such Borrower by the Agent on behalf of such Lender for such Competitive Bid
      Advance pursuant to paragraph (ii) above) to be made by each Lender as part
      of such Competitive Bid Borrowing, and reject any remaining offers made by
      Lenders pursuant to paragraph (ii) above by giving the Agent notice to that
      effect; provided, however, that such Borrower shall not accept any
      offer in excess of the requested bid amount for any maturity.  Such
      Borrower shall accept the offers made by any Lender or Lenders to make
      Competitive Bid Advances in order of the lowest to the highest rates of interest
      offered by such Lenders.  If two or more Lenders have offered the same
      interest rate, the amount to be borrowed at such interest rate will be allocated
      among such Lenders in proportion to the amount that each such Lender offered
      at
      such interest rate.

     

    (iv)  If
      the
      Borrower proposing the Competitive Bid Advance notifies the Agent that such
      Competitive Bid Borrowing is cancelled pursuant to paragraph (iii)(x)
      above, the Agent shall give prompt notice thereof to the Lenders and such
      Competitive Bid Borrowing shall not be made.

     

    (v)  If
      the
      Borrower proposing the Competitive Bid Advance accepts one or more of the offers
      made by any Lender or Lenders pursuant to paragraph (iii)(y) above, the
      Agent shall in turn promptly notify (A) each Lender that has made an offer
      as described in paragraph (ii) above, of the date and aggregate amount of
      such Competitive Bid Borrowing and whether or not any offer or offers made
      by
      such Lender pursuant to paragraph (ii) above have been accepted by such
      Borrower, (B) each Lender that is to make a Competitive Bid Advance as part
      of such Competitive Bid Borrowing, of the amount of each Competitive Bid Advance
      to be made by such Lender as part of such Competitive Bid Borrowing, and
      (C) each Lender that is to make a Competitive Bid Advance as part of such
      Competitive Bid Borrowing, upon receipt, that the Agent has received forms
      of
      documents appearing to fulfill the applicable conditions set forth in Article
      III.  Each Lender that is to make a Competitive Bid Advance as part of
      such Competitive Bid Borrowing shall, before 12:00 Noon (New York City
      time) on the date of such Competitive Bid Borrowing specified in the notice
      received from the Agent pursuant to clause (A) of the preceding sentence or
      any later time when such Lender shall have received notice from the Agent
      pursuant to clause (C) of the preceding sentence, make available for the
      account of its Applicable Lending Office to the Agent at the Agent's Account,
      in
      same day funds, such Lender's portion of such Competitive Bid
      Borrowing.  Upon fulfillment of the applicable conditions set forth in
      Article III and after receipt by the Agent of such funds, the Agent will make
      such funds available to such Borrower at the Agent's address referred to in
      Section 9.02.  Promptly after each Competitive Bid Borrowing the
      Agent will notify each Lender of the amount of the

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        18

      

    

    Competitive
      Bid Borrowing, the consequent Competitive Bid Reduction and the dates upon
      which
      such Competitive Bid Reduction commenced and will terminate.

     

    (vi)  If
      the
      Borrower proposing the Competitive Bid Advance notifies the Agent that it
      accepts one or more of the offers made by any Lender or Lenders pursuant to
      paragraph (iii)(y) above, such notice of acceptance shall be irrevocable
      and binding on such Borrower.  Such Borrower shall indemnify each
      Lender, after receipt of a written request by such Lender setting forth in
      reasonable detail the basis for such request, against any loss, cost or expense
      actually incurred by such Lender as a result of any failure by such Borrower
      to
      fulfill on or before the date specified in the related Notice of Competitive
      Bid
      Borrowing for such Competitive Bid Borrowing the applicable conditions set
      forth
      in Article III, including, without limitation, any loss (other than loss of
      anticipated profits), cost or expense actually incurred by reason of the
      liquidation or reemployment of deposits or other funds acquired by such Lender
      to fund the Competitive Bid Advance to be made by such Lender as part of such
      Competitive Bid Borrowing when such Competitive Bid Advance, as a result of
      such
      failure, is not made on such date.

     

    (b)  Each
      Competitive Bid Borrowing shall be in an aggregate amount of $10,000,000 or
      an
      integral multiple of $1,000,000 in excess thereof and, following the making
      of
      each Competitive Bid Borrowing, the Borrower that has borrowed through such
      Competitive Bid Borrowing shall be in compliance with the limitation set forth
      in the proviso to the first sentence of subsection (a) above.

     

    (c)  Within
      the limits and on the conditions set forth in this Section 2.03, each
      Borrower may from time to time borrow under this Section 2.03, repay or
      prepay pursuant to subsection (d) below, and reborrow under this
      Section 2.03.

     

    (d)  Each
      Borrower that has borrowed through a Competitive Bid Borrowing shall repay
      to
      the Agent for the account of each Lender that has made a Competitive Bid
      Advance, on the maturity date of such Competitive Bid Advance (such maturity
      date being that specified by such Borrower for repayment of such Competitive
      Bid
      Advance in the related Notice of Competitive Bid Borrowing delivered pursuant
      to
      subsection (a)(i) above and provided in the Competitive Bid Note evidencing
      such Competitive Bid Advance), the then unpaid principal amount of such
      Competitive Bid Advance.  A Borrower shall have no right to prepay any
      principal amount of any Competitive Bid Advance without the consent of the
      Lender that has made such Competitive Bid Advance or as is specified in the
      Notice of Competitive Bid Borrowing.

     

    (e)  Each
      Borrower that has borrowed through a Competitive Bid Borrowing shall pay
      interest on the unpaid principal amount of each Competitive Bid Advance from
      the
      date of such Competitive Bid Advance comprising such Competitive Bid Borrowing
      to the date the principal amount of such Competitive Bid Advance is repaid
      in
      full, at the rate of interest for such Competitive Bid Advance specified by
      the
      Lender making such Competitive Bid Advance in its notice with respect thereto
      delivered pursuant to subsection (a)(ii) above, payable on the interest
      payment date or dates specified by such Borrower for such Competitive Bid
      Advance in the related Notice of Competitive Bid Borrowing delivered pursuant
      to
      subsection (a)(i) above,

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        19

      

    

    as
      provided in the Competitive Bid Note evidencing such Competitive Bid
      Advance.  Upon the occurrence and during the continuance of an Event
      of Default under Section 6.01(a), each Borrower that has borrowed through a
      Competitive Bid Borrowing shall pay interest on the amount of unpaid principal
      of and interest on each Competitive Bid Advance comprising such Competitive
      Bid
      Borrowing that is owing to a Lender, payable in arrears on the date or dates
      interest is payable thereon, at a rate per annum equal at all times to
      2% per annum above the rate per annum required to be paid on such
      Competitive Bid Advance under the terms of the Competitive Bid Note evidencing
      such Competitive Bid Advance unless otherwise agreed in such Competitive Bid
      Note.

     

    (f)  The
      indebtedness of any Borrower resulting from each Competitive Bid Advance made
      to
      such Borrower as part of a Competitive Bid Borrowing shall be evidenced by
      a
      separate Competitive Bid Note of such Borrower payable to the order of the
      Lender making such Competitive Bid Advance.

     

    SECTION
      2.04.  Fees.  (a)  Facility
      Fee.  The Company agrees to pay to the Agent for the account of
      each Lender a facility fee on the aggregate amount of such Lender's Commitment
      from the date hereof in the case of each Initial Lender and from the effective
      date specified in the Assignment and Acceptance pursuant to which it became
      a
      Lender in the case of each other Lender until the Termination Date at a rate
      per
      annum equal to the Applicable Percentage in effect from time to time, payable
      in
      arrears quarterly on the last day of each March, June, September and December,
      commencing September 30, 2007, and on the Termination Date.

     

    (b)  Agent's
      Fees.  The Company shall pay to the Agent for its own account such
      fees as may from time to time be agreed in writing between the Company and
      the
      Agent.

     

    SECTION
      2.05.  Termination
      or Reduction of the Commitments.  (a)  Termination or
      Ratable Reduction by the Company.  The Company shall have the
      right, upon at least three Business Days' notice to the Agent, to terminate
      in
      whole or reduce ratably in part the unused portions of the respective
      Commitments of the Lenders, provided that each partial reduction shall be
      in the aggregate amount of $10,000,000 or an integral multiple of $1,000,000
      in
      excess thereof and provided, further, that the aggregate amount of
      the Commitments of the Lenders shall not be reduced to an amount that is less
      than the aggregate principal amount of the Competitive Bid Advances then
      outstanding.  The aggregate amount of the Commitments, once reduced or
      terminated as provided in this Section 2.05(a), may not be reinstated, except
      as
      provided in Section 2.05(c) below.

     

    (b)  Termination
      by the Majority Lenders upon Change of Control.  In the event that
      a Change of Control occurs, (i) the Agent shall at the request, or may with
      the consent, of the Majority Lenders, by notice to the Company given not later
      than 10 Business Days after receipt by the Lenders and the Agent of notice
      from
      the Company of such Change of Control pursuant to Section 5.01(h)(iv), declare
      the Commitments (determined without giving effect to any Competitive Bid
      Reduction) to be terminated in whole, effective as of the date set forth in
      such
      notice, provided, however, that such date shall be no earlier than
      10 Business Days after the Company's receipt of such notice of termination
      and
      (ii) each Borrower's right to make a Borrowing under this Agreement shall
      thereupon be suspended and shall remain suspended until

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        20

      

    

    10
      Business Days after receipt by the Lenders and the Agent of notice from the
      Company of such Change of Control pursuant to Section 5.01(h)(iv) unless the
      Majority Lenders shall have exercised their right to terminate the Commitments
      as provided in clause (i) of this Section 2.05(b), in which case each Borrower's
      right to make a Borrowing under this Agreement shall remain suspended until
      the
      effective date of such termination.  A notice of termination pursuant
      to this Section 2.05(b) shall have the effect of accelerating the outstanding
      Advances of the Lenders and the Notes of the Lenders and each Borrower shall,
      on
      or prior to the effective date of the termination of the Commitments, prepay
      or
      cause to be prepaid the outstanding principal amount of all Advances owing
      by
      any such Borrower to the Lenders, together with accrued interest thereon to
      the
      date of such payment, any facility fees or other fees payable to the Lenders
      pursuant to the provisions of Section 2.04, and all other amounts payable to
      the
      Lenders under this Agreement (including, but not limited to, any increased
      costs
      or other amounts owing under Section 2.11 and any indemnification for Taxes
      under Section 2.14).  Upon such prepayment and the termination of the
      Commitments in accordance with this Section 2.05(b), the obligations of the
      Lenders under this Agreement shall, by the provisions hereof, be released and
      discharged.

     

                   
      SECTION 2.06.  Repayment
      of Revolving Credit Advances.  Each Borrower shall repay to the
      Agent for the ratable account of the Lenders on the Termination Date the
      aggregate principal amount of the Revolving Credit Advances then outstanding
      in
      respect of such Borrower.

     

                   
      SECTION 2.07.  Interest
      on Revolving Credit Advances.  (a)  Scheduled
      Interest.  Each Borrower shall pay interest on the unpaid
      principal amount of each Revolving Credit Advance owing by such Borrower to
      each
      Lender from the date of such Revolving Credit Advance until such principal
      amount shall be paid in full, at the following rates per annum:

     

    (i)  Base
      Rate Advances.  During such periods as such Revolving Credit
      Advance is a Base Rate Advance, a rate per annum equal at all times to the
      sum
      of (x) the Base Rate in effect from time to time plus (y) the
      Applicable Margin in effect from time to time plus (z) the
      Applicable Utilization Fee, if any, in effect from time to time, payable in
      arrears quarterly on the last day of each March, June, September and December
      during such periods and on the date such Base Rate Advance shall be Converted
      or
      paid in full.

     

    (ii)  Eurodollar
      Rate Advances.  During such periods as such Revolving Credit
      Advance is a Eurodollar Rate Advance, a rate per annum equal at all times during
      each Interest Period for such Revolving Credit Advance to the sum of
      (x) the Eurodollar Rate for such Interest Period for such Revolving Credit
      Advance plus (y) the Applicable Margin in effect from time to time
plus (z) the Applicable Utilization Fee, if any, in effect from time
      to time, payable in arrears on the last day of such Interest Period and, if
      such
      Interest Period has a duration of more than three months, on each day that
      occurs during such Interest Period every three months from the first day of
      such
      Interest Period and on the date such Eurodollar Rate Advance shall be Converted
      or paid in full.

     

                   
      (b)  Default
      Interest.  Upon the occurrence and during the continuance of an
      Event of Default under Section 6.01(a), each Borrower shall pay interest on
      (i) the unpaid principal amount of each Revolving Credit Advance owing by
      such Borrower to each Lender, payable in arrears on the dates referred to in
      clause (a)(i) or (a)(ii) above, at a rate per annum equal at
      all

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        21

      

    

    times
      to
      2% per annum above the rate per annum required to be paid on such Revolving
      Credit Advance pursuant to clause (a)(i) or (a)(ii) above and (ii) to
      the fullest extent permitted by law, the amount of any interest, fee or other
      amount payable hereunder by such Borrower that is not paid when due, from the
      date such amount shall be due until such amount shall be paid in full, payable
      in arrears on the date such amount shall be paid in full and on demand, at
      a
      rate per annum equal at all times to 2% per annum above the rate per annum
      required to be paid on Base Rate Advances pursuant to clause (a)(i)
      above.

     

    (c)  Additional
      Interest on Eurodollar Rate Advances.  The applicable Borrower
      shall pay to each Lender, so long as such Lender shall be required under
      regulations of the Board of Governors of the Federal Reserve System to maintain
      reserves with respect to liabilities or assets consisting of or including
      Eurocurrency Liabilities, additional interest on the unpaid principal amount
      of
      each Eurodollar Rate Advance of such Lender to such Borrower, from the date
      of
      such Advance until such principal amount is paid in full, at an interest rate
      per annum equal at all times to the remainder obtained by subtracting (i) the
      Eurodollar Rate for the applicable Interest Period for such Advance from (ii)
      the rate obtained by dividing such Eurodollar Rate by a percentage equal to
      100%
minus the Eurodollar Rate Reserve Percentage of such Lender for such
      Interest Period, payable on each date on which interest is payable on such
      Advance.  Such additional interest shall be determined by such Lender
      and notified in reasonable detail to such Borrower through the
      Agent.

     

    SECTION
      2.08.  Interest
      Rate Determination.  (a)  Each Reference Bank agrees to
      furnish to the Agent timely information for the purpose of determining each
      Eurodollar Rate and each LIBO Rate.  If any one or more of the
      Reference Banks shall not furnish such timely information to the Agent for
      the
      purpose of determining any such interest rate, the Agent shall determine such
      interest rate on the basis of timely information furnished by the remaining
      Reference Banks.  The Agent shall give prompt notice to the relevant
      Borrowers and the Lenders of the applicable interest rate determined by the
      Agent for purposes of Section 2.07(a)(i) or (ii), and the rate, if any,
      furnished by each Reference Bank for the purpose of determining the interest
      rate under Section 2.07(a)(ii).

     

    (b)  If,
      with
      respect to any Eurodollar Rate Advances, the Majority Lenders notify the Agent
      that the Eurodollar Rate for any Interest Period for such Advances will not
      adequately reflect the cost to such Majority Lenders of making, funding or
      maintaining their respective Eurodollar Rate Advances for such Interest Period
      (which cost each such Lender reasonably determines in good faith is material),
      the Agent shall forthwith so notify each Borrower and the Lenders, whereupon
      (i) each Eurodollar Rate Advance will automatically, on the last day of the
      then existing Interest Period therefor, Convert into a Base Rate Advance, and
      (ii) the obligation of the Lenders to make, or to Convert Revolving Credit
      Advances into, Eurodollar Rate Advances shall be suspended until the Agent
      shall
      notify each Borrower and the Lenders that the circumstances causing such
      suspension no longer exist.

     

    (c)  If
      any
      Borrower, in requesting a Revolving Credit Borrowing comprised of Eurodollar
      Rate Advances, shall fail to select the duration of the Interest Period for
      such
      Eurodollar Rate Advances in accordance with the provisions contained in the
      definition of "Interest Period" in Section 1.01, the Agent will forthwith
      so notify such Borrower and the

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        22

      

    

    Lenders
      and such Advances will automatically, on the last day of the then existing
      Interest Period therefor, Convert into Base Rate Advances.

     

                   (d)  On
      the
      date on which the aggregate unpaid principal amount of Eurodollar Rate Advances
      comprising any Borrowing shall be reduced, by payment or prepayment or
      otherwise, to less than $5,000,000, such Advances shall automatically, on the
      last day of the then existing Interest Period therefor, Convert into Base Rate
      Advances.

     

                  
      (e)  Upon
      the
      occurrence and during the continuance of any Event of Default, (i) each
      Eurodollar Rate Advance will automatically, on the last day of the then existing
      Interest Period therefor, Convert into a Base Rate Advance and (ii) the
      obligation of the Lenders to make, or to Convert Advances into, Eurodollar
      Rate
      Advances shall be suspended.

     

                    (f)  If
      Moneyline Telerate Markets Page 3750 is unavailable and fewer than two Reference
      Banks furnish timely information to the Agent for determining the Eurodollar
      Rate or LIBO Rate for any Eurodollar Rate Advances or LIBO Rate Advances, as
      the
      case may be, such Eurodollar Rate or LIBO Rate shall be the interest rate per
      annum determined by the Agent to be the offered rate per annum at which deposits
      in U.S. dollars for a maturity comparable to the Interest Period for such
      Eurodollar Rate Advances or LIBO Rate Advances, as the case may be, appears
      on
      the Telerate Page 3750 (or any successor page) as of 11:00 A.M. (London time)
      two Business Days prior to the first day of such Interest Period (the
      "Telerate"); provided that if the Telerate is not then
      available:

     

    (i)  the
      Agent
      shall forthwith notify the relevant Borrower and the Lenders that the interest
      rate cannot be determined for such Eurodollar Rate Advances or LIBO Rate
      Advances, as the case may be;

     

    (ii)  with
      respect to Eurodollar Rate Advances, each such Advance will automatically,
      on
      the last day of the then existing Interest Period therefor, Convert into a
      Base
      Rate Advance (or if such Advance is then a Base Rate Advance, will continue
      as a
      Base Rate Advance); and

     

    (iii)  the
      obligation of the Lenders to make Eurodollar Rate Advances or LIBO Rate Advances
      or to Convert Revolving Credit Advances into Eurodollar Rate Advances shall
      be
      suspended until the Agent shall notify each Borrower and the Lenders that the
      circumstances causing such suspension no longer exist.

     

    SECTION
      2.09.  Optional
      Conversion of Revolving Credit Advances.  Any Borrower may on any
      Business Day, upon notice given to the Agent not later than 11:00 A.M.
      (New York City time) on the third Business Day prior to the date of the
      proposed Conversion and subject to the provisions of Sections 2.08 and
      2.12, Convert all Revolving Credit Advances of one Type comprising the same
      Borrowing into Revolving Credit Advances of the other Type; provided,
however, that any Conversion of Eurodollar Rate Advances into Base
      Rate
      Advances shall be made only on the last day of an Interest Period for such
      Eurodollar Rate Advances.  Each such notice of a Conversion shall,
      within the restrictions specified above, specify (i) the date of such
      Conversion, (ii) the Revolving Credit Advances to be Converted, and
      (iii) if such Conversion is into Eurodollar Rate Advances, the duration of
      the initial Interest Period for each

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        23

      

    

    such
      Advance.  Each notice of Conversion shall be irrevocable and binding
      on the relevant Borrower.

     

    SECTION
      2.10.  Optional
      Prepayments of Revolving Credit Advances.  Any Borrower may, upon
      notice to the Agent stating the proposed date and aggregate principal amount
      of
      the prepayment, given not later than 11:00 A.M. (New York City time) on the
      second Business Day prior to the date of such proposed prepayment, in the case
      of Eurodollar Rate Advances, and not later than 11:00 A.M. (New York City time)
      on the day of such proposed prepayment, in the case of Base Rate Advances,
      and,
      if such notice is given such Borrower shall, prepay the outstanding principal
      amount of the Revolving Credit Advances comprising part of the same Revolving
      Credit Borrowing in whole or ratably in part, together with accrued interest
      to
      the date of such prepayment on the principal amount prepaid; provided,
however, that (x) each partial prepayment shall be in an aggregate
      principal amount of $10,000,000 or an integral multiple of $1,000,000 in excess
      thereof and (y) in the event of any such prepayment of a Eurodollar Rate
      Advance, such Borrower shall be obligated to reimburse the Lenders in respect
      thereof pursuant to Section 9.04(d).  Each notice of prepayment
      by a Designated Subsidiary shall be given to the Agent through the
      Company.

     

    SECTION
      2.11.  Increased
      Costs.  (a)  If, after the date hereof, due to either
      (i) the introduction of or any change (other than any change by way of
      imposition or increase of reserve requirements included in the Eurodollar Rate
      Reserve Percentage) in or in the interpretation of any law or regulation or
      (ii) the compliance with any guideline or request from any central bank or
      other governmental authority having jurisdiction over any Lender (whether or
      not
      having the force of law), there shall be any increase in the cost to any Lender
      (which cost such Lender reasonably determines in good faith is material) of
      agreeing to make or making, funding or maintaining Eurodollar Rate Advances
      or
      LIBO Rate Advances (excluding for purposes of this Section 2.11 any such
      increased costs resulting from (i) Taxes or Other Taxes (as to which Section
      2.14 shall govern) and (ii) Excluded Taxes), then the Borrower of such Advances
      shall from time to time, upon demand by such Lender made not later than 60
      days
      after such Lender obtains knowledge of such increased costs (with a copy of
      such
      demand to the Agent), pay to the Agent for the account of such Lender additional
      amounts sufficient to compensate such Lender for such increased
      cost.  Each Lender agrees that if such Lender requests compensation
      for any amounts owing from a Borrower for such increased cost under this Section
      2.11(a), such Lender shall, prior to a Borrower being required to pay such
      increased costs, furnish to such Borrower a certificate of a senior financial
      officer of such Lender verifying that such increased cost was actually incurred
      by such Lender and the amount of such increased cost and setting forth in
      reasonable detail the basis therefore (with a copy of such certificate to the
      Agent); provided, however, that such certificate shall be
      conclusive and binding for all purposes, absent manifest error.

     

    (b)  If,
      after
      the date hereof, any Lender determines that compliance with any law or
      regulation or any guideline or request from any central bank or other
      governmental authority having jurisdiction over any Lender (whether or not
      having the force of law) affects or would affect the amount of capital required
      or expected to be maintained by such Lender or any corporation controlling
      such
      Lender and that the amount of such capital is increased by or based upon the
      existence of such Lender's commitment to lend hereunder and other commitments
      of
      this type, then, upon demand by such Lender made not later than 60 days after
      such Lender

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        24

      

    

    obtains
      knowledge of such increase in capital (with a copy of such demand to the Agent),
      the Company shall pay to the Agent for the account of such Lender, from time
      to
      time as specified by such Lender, additional amounts sufficient to compensate
      such Lender or such corporation in the light of such circumstances, to the
      extent that such Lender reasonably determines such increase in capital to be
      allocable to the existence of such Lender's commitment to lend
      hereunder.  Each Lender agrees that if such Lender requests
      compensation for any amounts owing from the Company for such increase in capital
      under this Section 2.11(b), such Lender shall, prior to a Borrower being
      required to compensate such Lender for such increase in capital, furnish to
      the
      Company a certificate of a senior financial officer of such Lender verifying
      that such increase in capital was actually required by such Lender and the
      amount of such increase in capital and setting forth in reasonable detail the
      basis therefore (with a copy of such certificate to the Agent); provided,
however, that such certificate shall be conclusive and binding for
      all
      purposes, absent manifest error.

     

    (c)  No
      Borrower shall be obligated to pay under this Section 2.11 any amounts which
      relate to costs or increases of capital incurred prior to the 12 months
      immediately preceding the date of demand for payment of such amounts, unless
      the
      applicable law, regulation, guideline or request resulting in such costs or
      increases of capital is imposed retroactively.  In the case of any
      law, regulation, guideline or request which is imposed retroactively, the Lender
      making demand for payment of any amount under this Section 2.11 shall notify
      the
      related Borrower not later than 12 months from the date that such Lender should
      reasonably have known (but promptly upon gaining knowledge of such increase)
      of
      such law, regulation, guideline or request and such Borrower's obligation to
      compensate such Lender for such amount is contingent upon such Lender's so
      notifying such Borrower; provided, however, that any failure by
      such Lender to provide such notice shall not affect such Borrower's obligations
      under this Section 2.11 with respect to amounts resulting from costs or
      increases of capital incurred after the date which occurs 12 months immediately
      preceding the date on which such Lender notified such Borrower of such law,
      regulation, guideline or request.

     

    (d)  If
      any
      Lender shall subsequently recoup any costs (other than from a Borrower) for
      which such Lender has theretofore been compensated by a Borrower under this
      Section 2.11, such Lender shall remit to such Borrower an amount equal to the
      amount of such recoupment as reasonably determined by such Lender.

     

    SECTION
      2.12.  Illegality.  Notwithstanding
      any other provision of this Agreement, if any Lender shall after the date
      hereof, notify the Agent that the introduction of or any change in or in the
      interpretation of any law or regulation makes it unlawful, or any central bank
      or other governmental authority having jurisdiction over any Lender asserts
      that
      it is unlawful, for any Lender or its Eurodollar Lending Office to perform
      its
      obligations hereunder to make Eurodollar Rate Advances or LIBO Rate Advances
      or
      to fund or maintain Eurodollar Rate Advances or LIBO Rate Advances hereunder,
      (i) each Eurodollar Rate Advance or LIBO Rate Advance, as the case may be,
      will automatically, upon such demand, Convert into a Base Rate Advance or an
      Advance that bears interest at the rate set forth in Section 2.07(a)(i), as
      the case may be, and (ii) the obligation of the Lenders to make Eurodollar
      Rate Advances or LIBO Rate Advances or to Convert Revolving Credit Advances
      into
      Eurodollar Rate Advances shall be suspended until the Agent shall notify each
      Borrower and the Lenders that the circumstances causing such suspension no
      longer exist.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        25

      

    

    SECTION
      2.13.  Payments
      and Computations.  (a)  Each Borrower shall make each
      payment hereunder and relating to the Advances not later than 1:00 P.M.
      (New York City time) on the day when due in U.S. dollars to the Agent at
      the Agent's Account in same day funds.  The Agent will promptly
      thereafter cause to be distributed like funds relating to the payment of
      principal or interest or facility fees ratably (other than amounts payable
      pursuant to Section 2.03, 2.05(c), 2.07(c), 2.11, 2.14 or 9.04(d)) to the
      Lenders for the account of their respective Applicable Lending Offices, and
      like
      funds relating to the payment of any other amount payable to any Lender to
      such
      Lender for the account of its Applicable Lending Office, in each case to be
      applied in accordance with the terms of this Agreement.  Upon its
      acceptance of an Assignment and Acceptance and recording of the information
      contained therein in the Register pursuant to Section 9.07(c), from and
      after the effective date specified in such Assignment and Acceptance, the Agent
      shall make all payments hereunder and relating to the Advances in respect of
      the
      interest assigned thereby to the Lender assignee thereunder, and the parties
      to
      such Assignment and Acceptance shall make all appropriate adjustments in such
      payments for periods prior to such effective date directly between
      themselves.

     

    (b)  All
      computations of interest based on the Base Rate shall be made by the Agent
      on
      the basis of a year of 365 or 366 days, as the case may be, and all computations
      of interest based on the Eurodollar Rate or the Federal Funds Rate and of
      facility fees shall be made by the Agent on the basis of a year of 360 days,
      in
      each case for the actual number of days (including the first day but excluding
      the last day) occurring in the period for which such interest or facility fees
      are payable.  Each determination by the Agent of an interest rate
      hereunder shall be conclusive and binding for all purposes, absent manifest
      error.

     

    (c)  Whenever
      any payment hereunder or relating to the Advances shall be stated to be due
      on a
      day other than a Business Day, such payment shall be made on the next succeeding
      Business Day, and such extension of time shall in such case be included in
      the
      computation of payment of interest or facility fee, as the case may be;
provided, however, that, if such extension would cause payment of
      interest on or principal of Eurodollar Rate Advances or LIBO Rate Advances
      to be
      made in the next following calendar month, such payment shall be made on the
      next preceding Business Day.

     

    (d)  Unless
      the Agent shall have received notice from a Borrower prior to the date on which
      any payment is due to the Lenders from such Borrower hereunder that such
      Borrower will not make such payment in full, the Agent may assume that such
      Borrower has made such payment in full to the Agent on such date and the Agent
      may, in reliance upon such assumption, cause to be distributed to each Lender
      on
      such due date an amount equal to the amount then due such Lender.  If
      and to the extent such Borrower shall not have so made such payment in full
      to
      the Agent, each Lender shall repay to the Agent forthwith on demand such amount
      distributed to such Lender together with interest thereon, for each day from
      the
      date such amount is distributed to such Lender until the date such Lender repays
      such amount to the Agent, at the Federal Funds Rate.

     

    SECTION
      2.14.  Taxes.  (a)  Any
      and all payments by each Borrower hereunder or relating to the Advances shall
      be
      made, in accordance with Section 2.13, free and clear of and without
      deduction for any and all present or future taxes, levies, imposts, deductions,
      charges or withholdings, and all liabilities with respect thereto,
excluding, in the case of each Lender and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        26

      

    

    the
      Agent, taxes imposed on its overall net income, and franchise taxes imposed
      on
      it in lieu of net income taxes, by the jurisdiction under the laws of which
      such
      Lender or the Agent (as the case may be) is organized or any political
      subdivision thereof or by any jurisdiction in which such Lender or the
      Agent  (as the case may be) is doing business that is unrelated to
      this Agreement and such net income taxes or franchise taxes that would not
      have
      been imposed if such Lender or the Agent (as the case may be) had not been
      conducting such unrelated business and, in the case of each Lender, taxes
      imposed on its overall net income, and franchise taxes imposed on it in lieu
      of
      net income taxes, by the jurisdiction of such Lender's Applicable Lending Office
      or any political subdivision thereof (all such excluded taxes being hereinafter
      referred to as "Excluded Taxes" and all such non-excluded taxes, levies,
      imposts, deductions, charges, withholdings and liabilities in respect of
      payments hereunder or relating to the Advances being hereinafter referred to
      as
      "Taxes").  If any Borrower shall be required by law to deduct
      any Taxes from or in respect of any sum payable hereunder or relating to the
      Advances to any Lender or the Agent, (i) the sum payable shall be increased
      as may be necessary so that after making all required deductions for Taxes
      (including deductions for Taxes applicable to additional sums payable under
      this
      Section 2.14) 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,
      (ii) such Borrower shall make such deductions and (iii) such Borrower
      shall pay the full amount deducted to the relevant taxation authority or other
      authority in accordance with applicable law.

     

    (b)  In
      addition, each Borrower agrees to pay any present or future stamp or documentary
      taxes or any other excise or property taxes, charges or similar levies that
      arise from any payment made hereunder or relating to the Advances or from the
      execution, delivery or registration of, performing under, or otherwise with
      respect to, this Agreement or relating to the Advances (hereinafter referred
      to
      as "Other Taxes").

     

    (c)  Each
      Borrower shall indemnify each Lender and the Agent for the full amount of Taxes
      or Other Taxes (including, without limitation, any taxes imposed by any
      jurisdiction on amounts payable under this Section 2.14) imposed on or paid
      by such Lender or the Agent (as the case may be) and any liability for
      penalties, interest and reasonable expenses arising therefrom or with respect
      thereto.  This indemnification shall be made within 30 days from the
      date such Lender or the Agent (as the case may be) makes written demand
      therefor; provided that such Lender shall, prior to a Borrower being
      required to indemnify such Lender pursuant to this Section 2.14(c), furnish
      to
      such Borrower a certificate of a senior financial officer of such Lender
      verifying that such Taxes or Other Taxes were actually incurred by such Lender
      and the amount of such Taxes or Other Taxes and setting forth in reasonable
      detail the basis therefor (with a copy of such certificate to the Agent),
provided, however, that such certificate shall be conclusive and
      binding for all purposes, absent manifest error.

     

    (d)  Within
      30
      days after the date of any payment of Taxes, each Borrower shall furnish to
      the
      Agent, at its address referred to in Section 9.02, the original or a
      certified copy of a receipt evidencing payment thereof.  In the case
      of any payment hereunder or relating to the Advances by or on behalf of any
      Borrower through an account or branch outside the United States or by or on
      behalf of any Borrower by a payor that is not a United States person, if such
      Borrower determines that no Taxes are payable in respect thereof, such Borrower
      shall furnish, or shall cause such payor to furnish, to the Agent, at such
      address, an opinion of counsel acceptable to the Agent stating that such payment
      is exempt from Taxes.  For purposes of this

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        27

      

    

    subsection
      (d) and subsection (e), the terms "United States" and "United States
      person" shall have the meanings specified in Section 7701 of the
      Internal Revenue Code.

     

    (e)  Each
      Lender organized under the laws of a jurisdiction outside the United States,
      on
      or prior to the date of its execution and delivery of this Agreement in the
      case
      of each Initial Lender and on the date of the Assignment and Acceptance pursuant
      to which it becomes a Lender in the case of each other Lender, and from time
      to
      time thereafter as requested in writing by any Borrower (but only so long as
      such Lender remains lawfully able to do so), shall provide the Agent and each
      Borrower with two original Internal Revenue Service forms 8ECI or 8BEN, as
      appropriate, or any successor or other form prescribed by the Internal Revenue
      Service, certifying that such Lender is exempt from or entitled to a reduced
      rate of United States withholding tax on payments pursuant to this Agreement
      or
      relating to the Advances.  If the forms provided by a Lender at the
      time such Lender first becomes a party to this Agreement indicates a United
      States interest withholding tax rate in excess of zero, withholding tax at
      such
      rate shall be considered excluded from Taxes unless and until such Lender
      provides the appropriate forms certifying that a lesser rate applies, whereupon
      withholding tax at such lesser rate only shall be considered excluded from
      Taxes
      for periods governed by such form; provided, however, that, if at
      the date of the Assignment and Acceptance pursuant to which a Lender assignee
      becomes a party to this Agreement, the Lender assignor was entitled to payments
      under subsection (a) in respect of United States withholding tax with
      respect to interest paid at such date, then, to such extent, the term Taxes
      shall include (in addition to withholding taxes that may be imposed in the
      future or other amounts otherwise includable in Taxes) United States withholding
      tax, if any, applicable with respect to the Lender assignee on such
      date.

     

    (f)  For
      any
      period with respect to which a Lender has failed to provide each Borrower with
      the appropriate form described in Section 2.14(e) (other than
      if such failure is due to a change in law occurring subsequent to the date
      on
      which a form originally was required to be provided, or if such form otherwise
      is not required under the first sentence of subsection (e) above), such
      Lender shall not be entitled to indemnification under Section 2.14(a) or
      (c) with respect to Taxes imposed by the United States by reason of such
      failure; provided, however, that should a Lender become subject to
      Taxes because of its failure to deliver a form required hereunder, each Borrower
      agrees to take such steps as such Lender shall reasonably request to assist
      such
      Lender to recover such Taxes.

     

    (g)  If
      any
      Lender determines, in its sole discretion, that it has actually and finally
      realized, by reason of a refund, deduction or credit of any Taxes or Other
      Taxes
      paid or reimbursed by a Borrower pursuant to subjection (a) or (c) above in
      respect of payments under the Credit Agreement or relating to the Advances,
      a
      current monetary benefit that it would otherwise not have obtained, and that
      would result in the total payments under this Section 2.14 exceeding the amount
      needed to make such Lender whole, such Lender shall pay to such Borrower, with
      reasonable promptness following the date on which it actually realizes such
      benefit, an amount equal to the lesser of the amount of such benefit or the
      amount of such excess, in each case net of all reasonable out-of-pocket expenses
      in securing such refund, deduction or credit.

     

    SECTION
      2.15.  Sharing
      of Payments, Etc.  If any Lender shall obtain any payment (whether
      voluntary, involuntary, through the exercise of any right of set-off,
      or

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        28

      

    

    otherwise)
      on account of the Revolving Credit Advances owing to it (other than pursuant
      to
      Section 2.05(c), 2.07(c), 2.11, 2.14 or 9.04(d)) in excess of its ratable share
      of payments on account of the Revolving Credit Advances obtained by all the
      Lenders, such Lender shall forthwith purchase from the other Lenders such
      participations in the Revolving Credit Advances owing to them as shall be
      necessary to cause such purchasing Lender to share the excess payment ratably
      with each of them; provided, however, that if all or any portion
      of such excess payment is thereafter recovered from such purchasing Lender,
      such
      purchase from each Lender shall be rescinded and such Lender shall repay to
      the
      purchasing Lender the purchase price to the extent of such recovery together
      with an amount equal to such Lender's ratable share (according to the proportion
      of (i) the amount of such Lender's required repayment to (ii) the
      total amount so recovered from the purchasing Lender) of any interest or other
      amount paid or payable by the purchasing Lender in respect of the total amount
      so recovered.  Each Borrower agrees that any Lender so purchasing a
      participation from another Lender pursuant to this Section 2.15 may, to the
      fullest extent permitted by law, exercise all its rights of payment (including
      the right of set-off) with respect to such participation as fully as if such
      Lender were the direct creditor of such Borrower in the amount of such
      participation.

     

    SECTION
      2.16.  Use
      of
      Proceeds.  The proceeds of the Advances shall be available (and
      each Borrower agrees that it shall use such proceeds) solely (i) for general
      corporate purposes of such Borrower and its Subsidiaries and (ii) for
      acquisitions by such Borrower that have been approved by the Board of Directors
      (or comparable governing group) of the Person that is to be acquired by such
      Borrower.

     

    SECTION
      2.17.  Mandatory
      Assignment by a Lender; Mitigation.  If any Lender requests from a
      Borrower either payment of additional interest on Eurodollar Rate Advances
      pursuant to Section 2.07(c), or reimbursement for increased costs pursuant
      to
      Section 2.11, or payment of or reimbursement for Taxes pursuant to Section
      2.14,
      or if any Lender notifies the Agent that it is unlawful for such Lender or
      its
      Eurodollar Lending Office to perform its obligations hereunder pursuant to
      Section 2.12, (i) such Lender will, upon three Business Days' notice by such
      Borrower to such Lender and the Agent, to the extent not inconsistent with
      such
      Lender's internal policies and applicable legal and regulatory restrictions,
      use
      reasonable efforts to make, fund or maintain its Eurodollar Rate Advances
      through another Eurodollar Lending Office of such Lender if (A) as a result
      thereof the additional amounts required to be paid pursuant to Section 2.07(c),
      2.11 or 2.14, as applicable, in respect of such Eurodollar Rate Advances would
      be materially reduced or the provisions of Section 2.12 would not apply to
      such
      Lender, as applicable, and (B) as determined by such Lender in good faith but
      in
      its sole discretion, the making or maintaining of such Eurodollar Rate Advances
      through such other Eurodollar Lending Office would not otherwise materially
      and
      adversely affect such Eurodollar Rate Advances or such Lender and (ii) unless
      such Lender has therefore taken steps to remove or cure, and has removed or
      cured (to the extent not inconsistent with internal policies and applicable
      legal and regulatory restrictions), the conditions creating such obligation
      to
      pay such additional amounts or the circumstances described in Section 2.12,
      such
      Lender will, upon at least five Business Days' notice from the Company to such
      Lender and the Agent, assign, pursuant to and in accordance with the provisions
      of Section 9.07, to one or more Eligible Assignees designated by the Company
      all, but not less than all, of the Revolving Credit Advances then owing to
      such
      Lender and all, but not less than all, of such Lender's rights and obligations
      hereunder (other than rights in respect of such Lender's outstanding Competitive
      Bid

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        29

      

    

    Advance),
      without recourse to or warranty by, or expense to, such Lender, for a purchase
      price equal to the outstanding principal amount of each such Advance then owing
      to such Lender plus any accrued but unpaid interest thereon and any
      accrued but unpaid facility fees owing thereto and, in addition, all additional
      costs reimbursements, expense reimbursements and indemnities, if any, owing
      in
      respect of such Lender's Commitment hereunder at such time shall be paid to
      such
      Lender.

     

    SECTION
      2.18.  Evidence
      of Debt.  (a)  Each Lender shall maintain in accordance
      with its usual practice an account or accounts evidencing the indebtedness
      of
      each Borrower to such Lender resulting from each Revolving Credit Advance owing
      to such Lender from time to time, including the amounts of principal and
      interest payable and paid to such Lender from time to time hereunder in respect
      of Revolving Credit Advances.  Each Borrower agrees that upon
      reasonable notice by any Lender to such Borrower (with a copy of such notice
      to
      the Agent) to the effect that a Revolving Credit Note is required or appropriate
      in order for such Lender to evidence (whether for purposes of pledge,
      enforcement or otherwise) the Revolving Credit Advances owing to, or to be
      made
      by, such Lender, such Borrower shall promptly execute and deliver to such Lender
      a Revolving Credit Note payable to the order of such Lender in a principal
      amount up to the Commitment of such Lender.

     

    (b)  The
      Register maintained by the Agent pursuant to Section 9.07(d) shall include
      a control account, and a subsidiary account for each Lender, in which accounts
      (taken together) shall be recorded (i) the date and amount of each
      Borrowing made hereunder, the type of Advances comprising such Borrowing and,
      if
      appropriate, the Interest Period applicable thereto, (ii) the terms of each
      Assignment and Acceptance delivered to and accepted by it, (iii) the amount
      of any principal or interest due and payable or to become due and payable from
      such Borrower to each Lender hereunder and (iv) the amount of any sum
      received by the Agent from each Borrower hereunder and each Lender's share
      thereof.

     

    (c)  Entries
      made in good faith by the Agent in the Register pursuant to subsection (b)
      above, and by each Lender in its account or accounts pursuant to
      subsection (a) above, shall be prima facie evidence of the
      amount of principal and interest due and payable or to become due and payable
      from each Borrower to, in the case of the Register, each Lender and, in the
      case
      of such account or accounts, such Lender, under this Agreement, absent manifest
      error; provided, however, that the failure of the Agent or such
      Lender to make an entry, or any finding that an entry is incorrect, in the
      Register or such account or accounts shall not limit or otherwise affect the
      obligations of any Borrower under this Agreement.

     

    ARTICLE
      III

     

    CONDITIONS
      TO EFFECTIVENESS AND LENDING

     

    SECTION
      3.01.  Conditions
      Precedent to Effectiveness of Sections 2.01 and
      2.03.  Sections 2.01 and 2.03 of this Agreement shall become
      effective on and as of the first date (the "Effective Date") on which the
      following conditions precedent have been satisfied:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        30

      

    

    (a)  There
      shall have occurred no Material Adverse Change since December 31, 2006
      except as disclosed by the Company in writing to the Lenders prior to the date
      of execution of this Agreement.

     

    (b)  There
      shall exist no action, suit, investigation, litigation or proceeding affecting
      the Company or any of its Subsidiaries pending or threatened before any court,
      governmental agency or arbitrator that (i) would be reasonably likely to
      have a Material Adverse Effect other than the matters described on
      Schedule 3.01(b) hereto (the "Disclosed Litigation") or
      (ii) purports to affect the legality, validity or enforceability of this
      Agreement or any Note or the consummation of the transactions contemplated
      hereby, and there shall have been no material adverse change in the status,
      or
      financial effect on the Company and its Subsidiaries taken as a whole, of the
      Disclosed Litigation from that described on Schedule 3.01(b)
      hereto.

     

    (c)  All
      governmental and third party consents and approvals necessary in connection
      with
      the transactions contemplated hereby shall have been obtained (without the
      imposition of any conditions that are not acceptable to the Lenders) and shall
      remain in effect, and no law or regulation shall be applicable in the reasonable
      judgment of the Lenders that restrains, prevents or imposes materially adverse
      conditions upon the transactions contemplated hereby.

     

    (d)  The
      Company shall have notified the Agent in writing as to the proposed Effective
      Date.

     

    (e)  The
      Company shall have paid all accrued fees and expenses of the Agent and the
      Lenders that shall have been invoiced as of the Effective Date (including the
      accrued fees and expenses of counsel to the Agent), in each case solely to
      the
      extent such fees and expenses are required by other provisions of this Agreement
      to be so paid.

     

    (f)  On
      the
      Effective Date, the following statements shall be true and the Agent shall
      have
      received for the account of each Lender a certificate signed by a duly
      authorized officer of the Company, dated the Effective Date, stating
      that:

     

    (i)  The
      representations and warranties of the Company contained in Section 4.01 are
      correct on and as of the Effective Date, and

     

    (ii)  No
      event
      has occurred and is continuing that constitutes a Default.

     

    (g)  The
      Agent
      shall have received on or before the Effective Date the following, each dated
      such day, in form and substance reasonably satisfactory to the Agent and (except
      for the Revolving Credit Notes) in sufficient copies for each
      Lender:

     

    (i)  The
      Revolving Credit Notes of the Company to the order of the Lenders, respectively,
      to the extent requested by any Lender pursuant to Section 2.18.

     

    (ii)  Certified
      copies of the resolutions of the Board of Directors of the Company approving
      this Agreement and the Notes of the Company, and of all

    
      
        
        

      

      
        
        

        
          

        

      

      
        31

      

    

     

    documents
      evidencing other necessary corporate action and governmental approvals, if
      any,
      with respect to this Agreement and such Notes.

     

    (iii)  A
      certificate of the Secretary or an Assistant Secretary of the Company certifying
      the names and true signatures of the officers of the Company authorized to
      sign
      this Agreement and the Notes of the Company and the other documents to be
      delivered hereunder.

     

    (iv)  A
      favorable opinion of Burton H. Snyder, Senior Vice President, General Counsel
      and Secretary of the Company, substantially in the form of Exhibit G hereto
      and as to such other matters as any Lender through the Agent may reasonably
      request.

     

    (v)  A
      favorable opinion of Shearman & Sterling LLP, counsel for the Agent, in
      form and substance satisfactory to the Agent.

     

    (vi)  Such
      other approvals, opinions or documents as any Lender, through the Agent, may
      reasonably request prior to the Effective Date.

     

    SECTION
      3.02.  Initial
      Borrowing of Each Designated Subsidiary.  The obligation of each
      Lender to make an initial Advance to each Designated Subsidiary following any
      designation of such Designated Subsidiary as a Borrower hereunder pursuant
      to
      Section 9.08 is subject to the Agent's receipt on or before the date of such
      Initial Advance of each of the following, in form and substance satisfactory
      to
      the Agent and dated such date, and (except for the Revolving Credit Notes)
      in
      sufficient copies for each Lender:

     

    (a)  The
      Revolving Credit Notes of such Borrower to the order of the Lenders,
      respectively, to the extent requested by any Lender pursuant to Section
      2.18.

     

    (b)  Certified
      copies of the resolutions of the Board of Directors of such Borrower approving
      this Agreement and the Notes of such Borrower, and of all documents evidencing
      other necessary corporate action and governmental approvals, if any, with
      respect to this Agreement and such Notes.

     

    (c)  A
      certificate of the Secretary or an Assistant Secretary of such Borrower
      certifying the names and true signatures of the officers of such Borrower
      authorized to sign this Agreement and the Notes of such Borrower and the other
      documents to be delivered hereunder.

     

    (d)  A
      certificate signed by a duly authorized officer of the Company, dated as of
      the
      date of such initial Advance, certifying that such Borrower shall have obtained
      all governmental and third party authorizations, consents, approvals (including
      exchange control approvals) and licenses required under applicable laws and
      regulations necessary for such Borrower to execute and deliver this Agreement
      and the Notes of such Borrower and to perform its obligations
      thereunder.

     

    (e)  The
      Designation Letter of such Designated Subsidiary, substantially in the form
      of
      Exhibit E hereto.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        32

      

    

    (f)  With
      respect to each Designated Subsidiary that has its principal place of business
      outside of the United States of America, evidence of the Process Agent's
      acceptance of its appointment pursuant to Section 9.12(a) as the agent of such
      Borrower, substantially in the form of Exhibit F hereto.

     

    (g)  A
      favorable opinion of counsel to such Designated Subsidiary, dated the date
      of
      such Initial Advance, substantially in the form of Exhibit H
      hereto.

     

    (h)  Such
      other approvals, opinions or documents as any Lender, through the Agent, may
      reasonably request.

     

    SECTION
      3.03.  Conditions
      Precedent to Each Revolving Credit Borrowing.  The obligation of
      each Lender to make a Revolving Credit Advance on the occasion of each Revolving
      Credit Borrowing shall be subject to the conditions precedent that the Effective
      Date shall have occurred and on the date of such Revolving Credit Borrowing
      the
      following statements shall be true (and each of the giving of the applicable
      Notice of Revolving Credit Borrowing and the acceptance by the Borrower
      requesting such Revolving Credit Borrowing of the proceeds of such Revolving
      Credit Borrowing shall constitute a representation and warranty by such Borrower
      that on the date of such Borrowing such statements are true):

     

    (i)  the
      representations and warranties of the Company contained in
      Section 4.01(except the representations set forth in the last sentence of
      subsection (e) thereof and in subsection (f) thereof (other than
      clause (i)(B) thereof)) are correct on and as of the date of such Revolving
      Credit Borrowing, before and after giving effect to such Revolving Credit
      Borrowing and to the application of the proceeds therefrom, as though made
      on
      and as of such date, and, if such Borrower is a Designated Subsidiary, the
      representations and warranties of such Borrower contained in its Designation
      Letter are correct on and as of the date of such Revolving Credit Borrowing,
      before and after giving effect to such Revolving Credit Borrowing and to the
      application of the proceeds therefrom, as though made on and as of such date,
      and

     

    (ii)  no
      event
      has occurred and is continuing, or would result from such Revolving Credit
      Borrowing or from the application of the proceeds therefrom, that constitutes
      a
      Default.

     

    SECTION
      3.04.  Conditions
      Precedent to Each Competitive Bid Borrowing.  The obligation of
      each Lender that is to make a Competitive Bid Advance on the occasion of a
      Competitive Bid Borrowing to make such Competitive Bid Advance as part of such
      Competitive Bid Borrowing is subject to the conditions precedent that
      (a) the Agent shall have received the written confirmatory Notice of
      Competitive Bid Borrowing with respect thereto, (b) on or before the date
      of such Competitive Bid Borrowing, but prior to such Competitive Bid Borrowing,
      the Agent shall have received a Competitive Bid Note payable to the order of
      such Lender for each of the one or more Competitive Bid Advances to be made
      by
      such Lender as part of such Competitive Bid Borrowing, in a principal amount
      equal to the principal amount of the Competitive Bid Advance to be evidenced
      thereby and otherwise on such terms as were agreed to for such Competitive
      Bid
      Advance in accordance with Section 2.03, and (c) on the date of such
      Competitive Bid Borrowing the following statements shall be true (and each
      of
      the giving

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        33

      

    

    of
      the
      applicable Notice of Competitive Bid Borrowing and the acceptance by the
      Borrower requesting such Competitive Bid Borrowing of the proceeds of such
      Competitive Bid Borrowing shall constitute a representation and warranty by
      such
      Borrower that on the date of such Competitive Bid Borrowing such statements
      are
      true):

     

    (i)  the
      representations and warranties of the Company contained in Section 4.01
      (except the representations set forth in the last sentence of
      subsection (e) thereof and in subsection (f) thereof (other than
      clause (i)(B) thereof)) are correct on and as of the date of such
      Competitive Bid Borrowing, before and after giving effect to such Competitive
      Bid Borrowing and to the application of the proceeds therefrom, as though made
      on and as of such date, and, if such Borrower is a Designated Subsidiary, the
      representations and warranties of such Borrower contained in its Designation
      Letter are correct on and as of the date of such Competitive Bid Borrowing,
      before and after giving effect to such Competitive Bid Borrowing and to the
      application of the proceeds therefrom, as though made on and as of such
      date,

     

    (ii)  no
      event
      has occurred and is continuing, or would result from such Competitive Bid
      Borrowing or from the application of the proceeds therefrom, that constitutes
      a
      Default, and

     

    (iii)  no
      event
      has occurred and no circumstance exists as a result of which the information
      concerning such Borrower that has been provided to the Agent and each Lender
      by
      such Borrower in connection herewith would include an untrue statement of a
      material fact or omit to state any material fact or any fact necessary to make
      the statements contained therein, in the light of the circumstances under which
      they were made, not misleading.

     

    SECTION
      3.05.  Determinations
      Under Section 3.01.  For purposes of determining compliance with
      the conditions specified in Section 3.01, each Lender 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 the Lenders unless an officer of the Agent responsible for
      the transactions contemplated by this Agreement shall have received notice
      from
      such Lender prior to the date that the Company, by notice to the Lenders,
      designates as the proposed Effective Date, specifying its objection
      thereto.  The Agent shall promptly notify the Lenders of the
      occurrence of the Effective Date.

     

    ARTICLE
      IV

     

    REPRESENTATIONS
      AND WARRANTIES

     

    SECTION
      4.01.  Representations
      and Warranties of the Company.  The Company represents and
      warrants as follows:

     

    (a)  The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Delaware.

     

    (b)  The
      execution, delivery and performance by the Company of this Agreement and the
      Notes of the Company to be delivered by it, and the consummation of
      the

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        34

      

    

    transactions
      contemplated hereby, are within the Company's corporate powers, have been duly
      authorized by all necessary corporate action, and do not contravene (i) the
      Company's charter or by-laws or (ii) any law or any contractual restriction
      binding on or affecting the Company, except where such contravention would
      not
      be reasonably likely to have a Material Adverse Effect.

     

    (c)  No
      authorization or approval or other action by, and no notice to or filing with,
      any governmental authority or regulatory body or any other third party is
      required for the due execution, delivery and performance by the Company of
      this
      Agreement or the Notes of the Company to be delivered by it, except for those
      authorizations, approvals, actions, notices and filings (i) listed on
      Schedule 4.01(c) hereto, all of which have been duly obtained, taken, given
      or made and are in full force and effect and (ii) where the Company's failure
      to
      receive, take or make such authorization, approval, action, notice or filing
      would not have a Material Adverse Effect.

     

    (d)  This
      Agreement has been, and each of the Notes of the Company to be delivered by
      it
      when delivered hereunder will have been, duly executed and delivered by the
      Company.  This Agreement is, and each of the Notes of the Company when
      delivered hereunder will be, the legal, valid and binding obligation of the
      Company enforceable against the Company in accordance with their respective
      terms, subject to applicable bankruptcy, reorganization, insolvency, moratorium
      or similar laws affecting creditors' rights generally and general principles
      of
      equity.

     

    (e)  The
      Consolidated balance sheet of the Company and its Subsidiaries as at December
      31, 2006, and the related Consolidated statements of income and cash flows
      of
      the Company and its Subsidiaries for the fiscal year then ended, prepared in
      accordance with U.S. generally accepted accounting principles, accompanied
      by an
      opinion of KPMG LLP, independent public accountants, and the Consolidated
      condensed balance sheet of the Company and its Subsidiaries as at July 1, 2007,
      and the related Consolidated statements of income and condensed cash flows
      of
      the Company and its Subsidiaries for the six months then ended, including all
      adjustments (consisting only of normal recurring accruals) considered necessary
      for a fair presentation prepared in accordance with applicable rules and
      regulations of the Securities and Exchange Commission, and duly certified by
      the
      chief financial officer of the Company, copies of which have been furnished
      to
      each Lender, fairly present, subject, in the case of said balance sheet as
      at
      July 1, 2007, and said statements of income and cash flows for the six months
      then ended, to audit adjustments, the Consolidated financial condition of the
      Company and its Subsidiaries as at such dates and the Consolidated results
      of
      the operations of the Company and its Subsidiaries for the periods ended on
      such
      dates.  Since December 31, 2006, there has been no Material Adverse
      Change.

     

    (f)  (i)
      There
      is no pending or, to the Company's knowledge, threatened action, suit,
      investigation, litigation or proceeding, including, without limitation, any
      Environmental Action, affecting the Company or any of its Subsidiaries before
      any court, governmental agency or arbitrator that (A) would be reasonably
      likely to have a Material Adverse Effect (other than the Disclosed Litigation)
      or (B) purports to affect the legality, validity or enforceability of this
      Agreement or any Note or the consummation of the

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        35

      

    

    transactions
      contemplated hereby, and (ii) there has been no adverse change in the status,
      or
      financial effect on the Company and its Subsidiaries taken as a whole, of the
      Disclosed Litigation from that described on Schedule 3.01(b)
      hereto.

     

    (g)  No
      proceeds of any Advance will be applied in any manner that will violate or
      cause
      any Lender to violate Regulation U or Regulation G issued by the Board
      of  Governors of the Federal Reserve System.

     

    (h)  The
      Company is not, and immediately after the application by the Company of the
      proceeds of each Advance will not be, an "investment company", or a company
      "controlled" by an "investment company", as such terms are defined in the
      Investment Company Act of 1940, as amended.

     

    (i)  The
      Company and each of its Subsidiaries are in compliance with all applicable
      laws,
      rules, regulations and orders, including, without limitation, ERISA and
      Environmental Laws and Environmental Permits, except where the failure to so
      comply would not be reasonably likely to have a Material Adverse
      Effect.

     

    (j)  To
      the
      Company's knowledge, (i) all past non-compliance with any Environmental Laws
      and
      Environmental Permits has been resolved without ongoing obligations or costs
      except where the failure to so comply would not be reasonably likely to have
      a
      Material Adverse Effect and (ii) no circumstances exist that would be reasonably
      likely to (A) form the basis of an Environmental Action against the Company
      or any of its Subsidiaries or any of their properties that would be reasonably
      likely to have a Material Adverse Effect or (B) cause any such property to
      be subject to any restrictions on ownership, occupancy, use or transferability
      under any Environmental Law that would be reasonably likely to have a Material
      Adverse Effect.

     

    (k)  No
      ERISA
      Event that would be reasonably likely to have a Material Adverse Effect has
      occurred or is reasonably expected to occur with respect to any
      Plan.

     

    (l)  Schedule
      B (Actuarial Information) to the most recent annual report (Form 5500 Series)
      for each Plan whose "funded current liability percentage" is less than 90%
      and
      whose "unfunded current liability" exceeds $5,000,000 (as such terms are defined
      in Section 302(d)(8) of ERISA), copies of which have been filed with the
      Internal Revenue Service and furnished to the Lenders, is complete and accurate
      and fairly presents in all material respects the funding status of such
      Plan.

     

    (m)  Neither
      the Company nor any ERISA Affiliate has outstanding liability with respect
      to,
      or is reasonably expected to incur any Withdrawal Liability to, any
      Multiemployer Plan that would be reasonably likely to have a Material Adverse
      Effect.

     

    (n)  Neither
      the Company nor any ERISA Affiliate has been notified by the sponsor of a
      Multiemployer Plan that such Multiemployer Plan is in reorganization or has
      been
      terminated, within the meaning of Title IV of ERISA, and no such
      Multiemployer Plan is reasonably expected to be in reorganization or to be
      terminated, within the meaning of Title IV of ERISA, where such
      reorganization or termination would be reasonably likely to have a Material
      Adverse Effect.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        36

      

    

    (o)  Except
      as
      set forth in the financial statements referred to in Section 4.01(e) and in
      Section 5.01(h), the Company and its Subsidiaries taken as a whole have no
      material liability with respect to "expected post retirement benefit
      obligations" within the meaning of Statement of Financial Accounting Standards
      No. 106.

     

    ARTICLE
      V

     

    COVENANTS
      OF THE COMPANY

     

    SECTION
      5.01.  Affirmative
      Covenants.  So long as any Advance shall remain unpaid or any
      Lender shall have any Commitment hereunder, the Company will:

     

    (a)  Compliance
      with Laws, Obligations, Etc.  Comply, and cause each of its
      Subsidiaries to comply, in all material respects, with all applicable laws,
      rules, regulations and orders, such compliance to include, without limitation,
      compliance with ERISA and Environmental Laws as provided in
      Section 5.01(i), except where the failure to so comply would not be
      reasonably likely to have a Material Adverse Effect.

     

    (b)  Payment
      of Taxes, Etc.  Pay and discharge, and cause each of its
      Subsidiaries to pay and discharge, before the same shall become delinquent
      if
      the failure to so pay and discharge would be reasonably likely to have a
      Material Adverse Effect, (i) all taxes, assessments and governmental
      charges or levies imposed upon it or upon its property and (ii) all lawful
      claims that, if unpaid, will by law become a Lien upon its property;
provided, however, that neither the Company nor any of its
      Subsidiaries shall be required to pay or discharge any such tax, assessment,
      charge or claim that is being contested in good faith and by proper proceedings
      and as to which appropriate reserves are being maintained.

     

    (c)  Maintenance
      of Insurance.  Maintain, and cause each of its Material
      Subsidiaries to maintain, insurance with responsible and reputable insurance
      companies or associations (or continue to maintain self-insurance) in such
      amounts and covering such risks as is usually carried by companies engaged
      in
      similar businesses and owning similar properties in the same general areas
      in
      which the Company or such Subsidiary operates.

     

    (d)  Preservation
      of Corporate Existence, Etc.  Preserve and maintain, and cause
      each of its Subsidiaries to preserve and maintain, its corporate existence,
      rights (charter and statutory) and franchises; provided, however,
      that the Company and its Subsidiaries may consummate any merger or consolidation
      permitted under Section 5.02(b) and provided further that
      neither the Company nor any of its Subsidiaries shall be required to preserve
      any right or franchise if the Board of Directors of the Company or such
      Subsidiary shall determine that the preservation thereof is no longer desirable
      in the conduct of the business of the Company or such Subsidiary, as the case
      may be, and that the loss thereof would not be reasonably likely to have a
      Material Adverse Effect.

     

    (e)  Authorizations.  Obtain,
      and cause each Designated Subsidiary with a principal place of business outside
      the United States to obtain, at any time and from time

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        37

      

    

    to
      time
      all authorizations, licenses, consents or approvals (including exchange control
      approvals) as shall now or hereafter be necessary or desirable under applicable
      law or regulations in connection with such Designated Subsidiary's making and
      performance of this Agreement and, upon the request of any Lender, promptly
      furnish to such Lender copies thereof.

     

    (f)  Keeping
      of Books.  Keep, and cause each of its Material Subsidiaries with
      a principal place of business in the United States to keep, proper books of
      record and account, in which full and correct entries in all material respects
      shall be made of all financial transactions and the assets and business of
      the
      Company and each such Subsidiary in accordance with generally accepted
      accounting principles in effect from time to time.

     

    (g)  Maintenance
      of Properties, Etc.  Maintain and preserve, and cause each of its
      Subsidiaries to maintain and preserve, all of its properties that are used
      in
      the conduct of its business in good working order and condition, ordinary wear
      and tear excepted, except where the failure to do so would not be reasonably
      likely to have a Material Adverse Effect.

     

    (h)  Reporting
      Requirements.  Furnish to the Lenders:

     

    (i)  as
      soon
      as available and in any event within 45 days after the end of each of the first
      three quarters of each fiscal year of the Company, Consolidated condensed
      balance sheet of the Company and its Subsidiaries as of the end of such quarter
      and Consolidated statements of income and Consolidated condensed statements
      of
      cash flows of the Company and its Subsidiaries for the period commencing at
      the
      end of the previous fiscal year and ending with the end of such quarter, duly
      certified (subject to audit adjustments) by the chief financial officer of
      the
      Company as having been prepared in accordance with applicable rules and
      regulations of the Securities and Exchange Commission and certificates of the
      chief financial officer of the Company as to compliance with the terms of this
      Agreement;

     

    (ii)  as
      soon
      as available and in any event within 90 days after the end of each fiscal year
      of the Company, a copy of the annual report for such year for the Company and
      its Subsidiaries, containing Consolidated balance sheet of the Company and
      its
      Subsidiaries as of the end of such fiscal year and Consolidated statements
      of
      income and cash flows of the Company and its Subsidiaries for such fiscal year,
      in each case accompanied by an opinion of KPMG LLP or other nationally
      recognized independent public accountants;

     

    (iii)  as
      soon
      as possible and in any event within five days after the occurrence of each
      Default continuing on the date of such statement, a statement of the chief
      financial officer of the Company setting forth the details of such Default
      and
      the action that the Company has taken and proposes to take with respect
      thereto;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        38

      

    

    (iv)  as
      soon
      as possible and in any event within three days after the occurrence of a Change
      of Control, notice of such Change of Control setting forth the details of such
      Change of Control;

     

    (v)  promptly
      after the sending or filing thereof, copies of all reports that the Company
      sends to any of its public securityholders, and copies of all reports and
      registration statements that the Company or any Subsidiary files with the
      Securities and Exchange Commission or any national securities
      exchange;

     

    (vi)  (a)
      promptly and in any event within 20 days after the Company or any ERISA
      Affiliate has actual knowledge that an event that is an ERISA Event that has
      resulted or that would be reasonably likely to result in a liability of the
      Company or any ERISA Affiliate in an amount in excess of $25,000,000 has
      occurred, a statement of the chief financial officer or other authorized officer
      of the Company describing such ERISA Event and the action, if any, that the
      Company or such ERISA Affiliate has taken and proposes to take with respect
      thereto and (b) on the date any records, documents or other information must
      be
      furnished to the PBGC with respect to any Plan pursuant to Section 4010 of
      ERISA, a copy of such records, documents and information;

     

    (vii)  promptly
      and in any event within three Business Days after receipt thereof by the Company
      or any ERISA Affiliate, copies of each notice from the PBGC stating its
      intention to terminate any Plan or to have a trustee appointed to administer
      any
      Plan, where such notice, termination or appointment has resulted or would be
      reasonably likely to result in a liability of the Company or any ERISA Affiliate
      in an amount in excess of $25,000,000;

     

    (viii)  promptly
      and in any event within 30 days after filing thereof with the Internal Revenue
      Service, copies of each Schedule B (Actuarial Information) to the annual report
      (Form 5500 Series) with respect to each Plan whose "funded current liability
      percentage" is less than 90% and whose "unfunded current liability" exceeds
      $5,000,000 (as such terms are defined in Section 302(d)(8) of
      ERISA);

     

    (ix)  promptly
      and in any event within five Business Days after receipt thereof by the Company
      or any ERISA Affiliate from the sponsor of a Multiemployer Plan, copies of
      each
      notice concerning (A) the imposition of Withdrawal Liability by any such
      Multiemployer Plan, (B) the reorganization or termination, within the
      meaning of Title IV of ERISA, of any such Multiemployer Plan or
      (C) the amount of liability incurred, or that may be incurred, by the
      Company or any ERISA Affiliate in connection with any event described in
      clause (A) or (B), where such imposition, reorganization or termination has
      resulted or would be reasonably likely to result in a liability of the Company
      or any ERISA Affiliate in an amount exceeding $25,000,000;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        39

      

    

    (x)  promptly
      after the commencement thereof, notice of all actions and proceedings before
      any
      court, governmental agency or arbitrator affecting the Company or any of its
      Subsidiaries of the type described in Section 4.01(f); and

     

    (xi)  such
      other information respecting the Company or any of its Subsidiaries as any
      Lender through the Agent may from time to time reasonably request.

     

    (i)  Compliance
      with Environmental Laws.  Comply, and cause each of its
      Subsidiaries and all lessees and other Persons operating or occupying its
      properties, to comply with all applicable Environmental Laws and Environmental
      Permits except where the failure to so comply would not be reasonably likely
      to
      have a Material Adverse Effect.

     

    SECTION
      5.02.  Negative
      Covenants.  So long as any Advance shall remain unpaid or any
      Lender shall have any Commitment hereunder, the Company will not:

     

    (a)  Liens,
      Etc.  Create or suffer to exist, or permit any of its Subsidiaries
      to create or suffer to exist, any Lien on or with respect to any of its
      properties, whether now owned or hereafter acquired, or assign, or permit any
      of
      its Subsidiaries to assign, any right to receive income, other
      than:

     

    (i)  Permitted
      Liens,

     

    (ii)  purchase
      money Liens upon or in any real property or equipment acquired or held by the
      Company or any Subsidiary of the Company in the ordinary course of business
      to
      secure the purchase price of such property or equipment or to secure Debt
      incurred solely for the purpose of financing the acquisition of such property
      or
      equipment, or Liens existing on such property or equipment at the time of its
      acquisition (other than any such Liens created in contemplation of such
      acquisition that were not incurred to finance the acquisition of such property)
      or extensions, renewals or replacements of any of the foregoing for the same
      or
      a lesser amount, provided, however, that no such Lien shall extend
      to or cover any properties of any character other than the real property or
      equipment being acquired, and no such extension, renewal or replacement shall
      extend to or cover any properties not theretofore subject to the Lien being
      extended, renewed or replaced,

     

    (iii)  any
      assignment of any right to receive income existing on the Effective Date and
      any
      Liens existing on the Effective Date,

     

    (iv)  Liens
      on
      property of a Person existing at the time such Person is merged into or
      consolidated with the Company or any Subsidiary of the Company or becomes a
      Subsidiary of the Company; provided that such Liens do not extend to any
      assets other than those of the Person so merged into or consolidated with the
      Company or such Subsidiary or acquired by the Company or such
      Subsidiary,

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        40

      

    

    (v)  other
      Liens or any other assignment of any right to receive income (in addition to
      the
      Liens and assignments permitted under clauses (i), (ii), (iii), (iv) or (vi))
      securing Debt in an aggregate principal amount not to exceed $450,000,000,
      and

     

    (vi)  the
      replacement, extension or renewal of any Lien or any assignment of any right
      to
      receive income permitted by clause (iii) or (iv) above upon or in the same
      property theretofore subject thereto or the replacement, extension or renewal
      (without increase in the amount or change in any direct or contingent obligor)
      of the Debt secured thereby.

     

    (b)  Mergers,
      Etc.  Merge or consolidate with or into, or convey, transfer,
      lease or otherwise dispose of (whether in one transaction or in a series of
      transactions) all or substantially all of its assets (whether now owned or
      hereafter acquired) to, any Person, or permit any of its Subsidiaries to do
      so,
      except that (i) any Subsidiary of the Borrower may merge or consolidate with
      or
      into, or dispose of assets to, any other Subsidiary of the Company, (ii) any
      Subsidiary of the Company may merge into or dispose of assets to the Company
      and
      (iii) the Company or any of its Subsidiaries may merge with any other Person
      so
      long as the Company or such Subsidiary is the surviving entity, provided,
      in each case, that no Default shall have occurred and be continuing at the
      time
      of such proposed transaction or would result therefrom.

     

    (c)  Change
      in Nature of Business.  Make, or permit any of its Subsidiaries to
      make, any material change in the nature of its business as carried on at the
      date hereof.

     

    SECTION
      5.03.  Financial
      Covenant.  So long as any Advance shall remain unpaid or any
      Lender shall have any Commitment hereunder, the Company shall maintain, as
      of
      the end of each fiscal quarter, a ratio of (a) Pre-Tax Income from
      Continuing Operations for the four fiscal quarters then ended to
      (b) Consolidated Interest Expense for such four fiscal quarters of not less
      than 2.0 to 1.0.

     

    ARTICLE
      VI

     

    EVENTS
      OF
      DEFAULT

     

    SECTION
      6.01.  Events
      of Default.  If any of the following events ("Events of
      Default") shall occur and be continuing:

     

    (a)  Any
      Borrower shall fail to pay any principal of any Advance within one Business
      Day
      after the same becomes due and payable; or any Borrower shall fail to pay any
      interest on any Advance or make any other payment of fees or other amounts
      payable under this Agreement or any Note within three Business Days after the
      same becomes due and payable; or

     

    (b)  Any
      representation or warranty made by any Company herein or, if such Borrower
      is a
      Designated Subsidiary, in such Borrower's Designation Letter, or by any Borrower
      in connection with this Agreement shall prove to have been incorrect in any
      material respect when made; or

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        41

      

    

    (c)  (i) The
      Company shall fail to perform or observe any term, covenant or agreement
      contained in Section 5.01(d) or (h)(iii), (iv) or (vi)-(ix), 5.02 or 5.03,
      or (ii) the Company or any other Borrower shall fail to perform or observe
      any
      term, covenant or agreement contained in Section 5.01(h)(i), (ii), (v), (x)
      or
      (xi) if such failure shall remain unremedied for 10 days after written notice
      thereof shall have been given to the relevant Borrower by the Agent or any
      Lender, or (iii) the Company or any other Borrower shall fail to perform or
      observe any other term, covenant or agreement contained in this Agreement on
      its
      part to be performed or observed if such failure shall remain unremedied for
      30
      days after written notice thereof shall have been given to the relevant Borrower
      by the Agent or any Lender; or

     

    (d)  Any
      Borrower or any of its Subsidiaries shall fail to pay any principal of or
      premium or interest on any Debt that is outstanding in a principal or notional
      amount of at least $125,000,000 in the aggregate (but excluding Debt outstanding
      hereunder) of such Borrower or such Subsidiary (as the case may be), when the
      same becomes due and payable (whether by scheduled maturity, required
      prepayment, acceleration, demand or otherwise), and such failure shall continue
      after the applicable grace period, if any, specified in the agreement or
      instrument relating to such Debt; or any other event shall occur or condition
      shall exist under any agreement or instrument relating to any such Debt and
      shall continue after the applicable grace period, if any, specified in such
      agreement or instrument, if the effect of such event or condition is to
      accelerate the maturity of such Debt; or any such Debt shall be declared to
      be
      due and payable, or required to be prepaid or redeemed (other than by a
      regularly scheduled required prepayment or redemption), purchased or defeased,
      or an offer to prepay, redeem, purchase or defease such Debt shall be required
      to be made, in each case prior to the stated maturity thereof, unless the event
      giving rise to such prepayment, redemption, purchase or defeasance is not
      related directly to any action taken by, or the condition (financial or
      otherwise) or operations of, the Company, any of its Subsidiaries, or any of
      their respective properties; or

     

    (e)  Any
      Borrower or any of its Material Subsidiaries shall generally not pay its debts
      as such debts become due, or shall admit in writing its inability to pay its
      debts generally, or shall make a general assignment for the benefit of
      creditors; or any proceeding shall be instituted by or against any Borrower
      or
      any of its Material Subsidiaries seeking to adjudicate it a bankrupt or
      insolvent, or seeking liquidation, winding up, reorganization, arrangement,
      adjustment, protection, relief, or composition of it or its debts under any
      law
      relating to bankruptcy, insolvency or reorganization or relief of debtors,
      or
      seeking the entry of an order for relief or the appointment of a receiver,
      trustee, custodian or other similar official for it or for any substantial
      part
      of its property and, in the case of any such proceeding instituted against
      it
      (but not instituted by it), either such proceeding shall remain undismissed
      or
      unstayed for a period of 60 days, or any of the actions sought in such
      proceeding (including, without limitation, the entry of an order for relief
      against, or the appointment of a receiver, trustee, custodian or other similar
      official for, it or for any substantial part of its property) shall occur;
      or
      any Borrower or any of its Material Subsidiaries shall take any corporate action
      to authorize any of the actions set forth above in this subsection (e);
      or

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        42

      

    

    (f)  Any
      judgment or order for the payment of money in excess of $125,000,000 shall
      be
      rendered against any Borrower or any of its Subsidiaries and there shall be
      any
      period of 30 consecutive days during which a stay of enforcement of such
      judgment or order, by reason of a pending appeal or otherwise, shall not be
      in
      effect; or

     

    (g)  The
      Company or any ERISA Affiliate shall incur, or, in the reasonable opinion of
      the
      Majority Lenders, shall be reasonably likely to incur liability in excess of
      $125,000,000 in the aggregate as a result of one or more of the
      following:  (i) the occurrence of any ERISA Event; (ii) the
      partial or complete withdrawal of the Company or any of its ERISA Affiliates
      from a Multiemployer Plan; or (iii) the reorganization or termination of a
      Multiemployer Plan; or

     

    (h)  Any
      ERISA
      Event shall have occurred with respect to a Plan and the sum (determined as
      of
      the date of occurrence of such ERISA Event) of the Insufficiency of such Plan
      and the Insufficiency of any and all other Plans with respect to which an ERISA
      Event shall have occurred and then exist (or the liability of the Company and
      the ERISA Affiliates related to such ERISA Event) exceeds $125,000,000;
      or

     

    (i)  The
      Company or any ERISA Affiliate shall have been notified by the sponsor of a
      Multiemployer Plan that it has incurred Withdrawal Liability to such
      Multiemployer Plan in an amount that, when aggregated with all other amounts
      required to be paid to Multiemployer Plans by the Company and the ERISA
      Affiliates as Withdrawal Liability (determined as of the date of such
      notification), exceeds $125,000,000; or

     

    (j)  The
      Company or any ERISA Affiliate shall have been notified by the sponsor of a
      Multiemployer Plan that such Multiemployer Plan is in reorganization or is
      being
      terminated, within the meaning of Title IV of ERISA, and as a result of
      such reorganization or termination the aggregate annual contributions of the
      Company and the ERISA Affiliates to all Multiemployer Plans that are then in
      reorganization or being terminated have been or will be increased over the
      amounts contributed to such Multiemployer Plans for the plan years of such
      Multiemployer Plans immediately preceding the plan year in which such
      reorganization or termination occurs by an amount exceeding $125,000,000 in
      the
      aggregate;

     

    then,
      and
      in any such event, the Agent (i) shall at the request, or may with the
      consent, of the Majority Lenders, by notice to the Company and each other
      Borrower, declare the obligation of each Lender to make Advances to be
      terminated, whereupon the same shall forthwith terminate, and (ii) shall at
      the request, or may with the consent, of the Majority Lenders, by notice to
      the
      Company and each other Borrower, declare the Advances, all interest thereon
      and
      all other amounts payable under this Agreement to be forthwith due and payable,
      whereupon the Advances, all such interest and all such amounts shall become
      and
      be forthwith due and payable, without presentment, demand, protest or further
      notice of any kind, all of which are hereby expressly waived by the Borrowers;
      provided, however, that in the event of an actual or deemed entry
      of an order for relief with respect to any Borrower under the Federal Bankruptcy
      Code, (A) the obligation of each Lender to make Advances to such Borrower
      (or, if such event has occurred in respect of the Company, to make Advances
      to
      any Borrower) shall automatically be terminated and (B) the Advances, all
      such interest and all such amounts owing by such Borrower

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        43

      

    

    (or,
      if
      such event has occurred in respect of the Company, owing by all of the
      Borrowers) shall automatically become and be due and payable, without
      presentment, demand, protest or any notice of any kind, all of which are hereby
      expressly waived by the Borrowers.

     

    ARTICLE
      VII

     

    GUARANTY

     

                  
      SECTION 7.01.  Guaranty.  For
      valuable consideration, receipt whereof is hereby acknowledged, and to induce
      each Lender to make Advances to the Designated Subsidiaries and to induce the
      Agent to act hereunder, the Company hereby unconditionally and irrevocably
      guarantees to each Lender and the Agent the punctual payment when due, whether
      at stated maturity, by acceleration or otherwise, of all obligations of the
      Designated Subsidiaries now or hereafter existing under this Agreement or the
      Notes, whether for principal, interest, fees, indemnities, expenses or otherwise
      (such obligations being the "Guaranteed Obligations"), and agrees to pay
      any and all reasonable and documented expenses (including reasonable counsel
      fees and expenses) incurred by the Agent or any Lender in enforcing any rights
      under this Guaranty.  Without limiting the generality of the
      foregoing, the Company's liability shall extend to all amounts that constitute
      part of the Guaranteed Obligations and that would be owed by any Designated
      Subsidiary to the Agent or any Lender under this Agreement and the Notes but
      for
      the fact that such Guaranteed Obligations are unenforceable or not allowable
      due
      to the existence of a bankruptcy, reorganization or similar proceeding involving
      such Designated Subsidiary.

     

                  
      SECTION 7.02.  Guaranty
      Absolute.  The Company guarantees that the Guaranteed Obligations
      will be paid strictly in accordance with the terms of this Agreement regardless
      of any law, regulation or order now or hereafter in effect in any jurisdiction
      affecting any of such terms or the rights of the Agent or any Lender with
      respect thereto.  The obligations of the Company under this Guaranty
      are independent of the Guaranteed Obligations or any other obligations of any
      Designated Subsidiary under this Agreement and the Notes, and a separate action
      or actions may be brought and prosecuted against the Company to enforce the
      obligations of the Company under this Guaranty, irrespective of whether any
      action is brought against any Borrower or whether any Borrower is joined in
      any
      such action or actions.  The liability of the Company under this
      Guaranty shall be irrevocable, absolute and unconditional irrespective of,
      and
      the Company hereby irrevocably waives any defenses it may now or hereafter
      have
      in any way relating to, any or all of the following:

     

    (a)  any
      lack
      of validity or enforceability of this Agreement or the Notes, or any other
      agreement or instrument relating thereto;

     

    (b)  any
      change in the time, manner or place of payment of, or in any other term of,
      all
      or any of the Guaranteed Obligations or any other obligations of any Designated
      Subsidiary under this Agreement or the Notes, or any other amendment or waiver
      of or any consent to departure from this Agreement or any Note, including,
      without limitation, any increase in the Guaranteed Obligations resulting from
      the extension of additional credit to any Designated Subsidiary or any of its
      Subsidiaries or otherwise;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        44

      

    

    (c)  any
      taking, release or amendment or waiver of or consent to departure from any
      other
      guaranty, for all or any of the Guaranteed Obligations;

     

    (d)  any
      change, restructuring or termination of the corporate structure or existence
      of
      any Designated Subsidiary or any of its Subsidiaries;

     

    (e)  any
      failure of the Agent or any Lender to disclose to the Company or any Designated
      Subsidiary any information relating to the financial condition, operations,
      properties or prospects of any Designated Subsidiary now or in the future known
      to the Agent or such Lender, as the case may be (the Company waiving any duty
      on
      the part of the Agent or the Lenders to disclose such information);
      or

     

    (f)  any
      other
      circumstance (including, without limitation, any statute of limitations) or
      any
      existence of or reliance on any representation by the Agent or any Lender that
      might otherwise constitute a defense available to, or a discharge of, any
      Designated Subsidiary or the Company or any other guarantor or
      surety.

     

    This
      Guaranty shall continue to be effective or be reinstated, as the case may be,
      if
      at any time any payment of any of the Guaranteed Obligations is rescinded or
      must otherwise be returned by the Agent or any Lender upon the insolvency,
      bankruptcy or reorganization of any Designated Subsidiary or otherwise, all
      as
      though such payment had not been made.

     

    SECTION
      7.03.  Waivers
      and Acknowledgments.  (a)  The Company hereby waives
      promptness, diligence, notice of acceptance and any other notice with respect
      to
      any of the Guaranteed Obligations and this Guaranty and any requirement that
      the
      Agent or any Lender exhaust any right or take any action against any Designated
      Subsidiary or any other Person, and all other notices and demands
      whatsoever.

     

    (b)  The
      Company hereby waives any right to revoke this Guaranty, and acknowledges that
      this Guaranty is continuing in nature and applies to all Guaranteed Obligations,
      whether existing now or in the future.

     

    (c)  The
      Company acknowledges that it will receive substantial direct and indirect
      benefits from the financing arrangements contemplated by this Agreement and
      the
      Notes and that the waivers set forth in this Section 7.03 are knowingly made
      in
      contemplation of such benefits.

     

    SECTION
      7.04.  Subrogation.  The
      Company will not exercise any rights that it may now or hereafter acquire
      against any Designated Subsidiary or any other insider guarantor that arise
      from
      the existence, payment, performance or enforcement of the Company's obligations
      under this Guaranty or any provision of this Agreement or the Notes, including,
      without limitation, any right of subrogation, reimbursement, exoneration,
      contribution or indemnification and any right to participate in any claim or
      remedy of the Agent or any Lender against such Designated Subsidiary or any
      other insider guarantor or any collateral, whether or not such claim, remedy
      or
      right arises in equity or under contract, statute or common law, including,
      without limitation, the right to take or receive from such Designated Subsidiary
      or any other insider guarantor, directly or indirectly, in cash or other
      property or by set-off or in any other manner, payment or security on account
      of
      such claim, remedy or right, unless and until all of the Guaranteed Obligations
      and all other amounts payable under this Guaranty shall have been

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        45

      

    

    paid
      in
      full in cash and the Commitments shall have expired or terminated.  If
      any amount shall be paid to the Company in violation of the preceding sentence
      at any time prior to the later of the payment in full in cash of the Guaranteed
      Obligations and all other amounts payable under this Guaranty and the
      Termination Date, such amount shall be held in trust for the benefit of the
      Agent and Lenders and shall forthwith be paid to the Agent to be credited and
      applied to the Guaranteed Obligations and all other amounts payable under this
      Guaranty, whether matured or unmatured, in accordance with the terms of this
      Agreement and any Notes, or to be held as collateral for any Guaranteed
      Obligations or other amounts payable under this Guaranty thereafter
      arising.  If (i) the Company shall make payment to the Agent or
      any Lender of all or any part of the Guaranteed Obligations, (ii) all of
      the Guaranteed Obligations and all other amounts payable under this Guaranty
      shall be paid in full in cash and (iii) the Termination Date shall have
      occurred, the Agent and the Lenders will, at the Company's request and expense,
      execute and deliver to the Company appropriate documents, without recourse
      and
      without representation or warranty, necessary to evidence the transfer by
      subrogation to the Company of an interest in the Guaranteed Obligations
      resulting from such payment by the Company.

     

    SECTION
      7.05.  Continuing
      Guaranty; Assignments Under the Credit Agreement.  This Guaranty is a continuing guaranty and shall
      (a) remain in full force and effect until the later of the payment in full
      in cash of the Guaranteed Obligations and all other amounts payable under this
      Agreement and the Termination Date, (b) be binding upon the Company,
      its successors and assigns and (c) inure to the benefit of and be
      enforceable by the Agent and the Lenders and their respective successors,
      transferees and assigns.  Without limiting the generality of the
      foregoing clause (c), any Lender may assign or otherwise transfer all or
      any portion of its rights and obligations under this Agreement (including,
      without limitation, all or any portion of its Commitment, the Advances owing
      to
      it and any Note or Notes held by it) to any other Person, and such other Person
      shall thereupon become vested with all the benefits in respect thereof granted
      to such Lender herein or otherwise, in each case as and to the extent provided
      in Section 9.07 of this Agreement.

     

    SECTION
      7.06.  No
      Stay.  The Company agrees that, as between (a) the Company and (b)
      the Lenders and the Agent, the Guaranteed Obligations of any Designated
      Subsidiary guaranteed by the Company hereunder may be declared to be forthwith
      due and payable as provided in Article VI hereof for purposes of this Guaranty
      by declaration to the Company as guarantor notwithstanding any stay, injunction
      or other prohibition preventing such declaration as against such Designated
      Subsidiary and that, in the event of such declaration to the Company as
      guarantor, such Guaranteed Obligations (whether or not due and payable by such
      Designated Subsidiary), shall forthwith become due and payable by the Company
      for purposes of this Guaranty.

     

    ARTICLE
      VIII

     

    THE
      AGENT

     

    SECTION
      8.01.  Authorization
      and Action.  Each Lender hereby appoints and authorizes the Agent
      to take such action as agent on its behalf and to exercise such powers and
      discretion under this Agreement as are delegated to the Agent by the terms
      hereof, together with such powers and discretion as are reasonably incidental
      thereto.  As to any matters not expressly

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        46

      

    

    provided
      for by this Agreement (including, without limitation, enforcement or collection
      of the Advances), the Agent shall not be required to exercise any discretion
      or
      take any action, but shall be required to act or to refrain from acting (and
      shall be fully protected in so acting or refraining from acting) upon the
      instructions of the Majority Lenders, and such instructions shall be binding
      upon all Lenders and all holders of Advances; provided, however,
      that the Agent shall not be required to take any action that exposes the Agent
      to personal liability or that is contrary to this Agreement or applicable
      law.  The Agent agrees to give to each Lender prompt notice of each
      notice given to it by any Borrower pursuant to the terms of this
      Agreement.

     

    SECTION
      8.02.  Agent's
      Reliance, Etc.  Neither the Agent nor any of its directors,
      officers, agents or employees shall be liable for any action taken or omitted
      to
      be taken by it or them under or in connection with this Agreement, except for
      its or their own gross negligence or willful misconduct.  Without
      limitation of the generality of the foregoing, the
      Agent:  (a) may treat the Lender that made any Advance as the
      holder of the Debt resulting therefrom until the Agent receives and accepts
      an
      Assignment and Acceptance entered into by such Lender, as assignor, and an
      Eligible Assignee, as assignee, as provided in Section 9.07; (b) may
      consult with legal counsel (including counsel for any Borrower), independent
      public accountants and other experts selected by it and shall not be liable
      for
      any action taken or omitted to be taken in good faith by it in accordance
      with the advice of such counsel, accountants or experts; (c) makes no
      warranty or representation to any Lender and shall not be responsible to any
      Lender for any statements, warranties or representations (whether written or
      oral) made in or in connection with this Agreement; (d) shall not have any
      duty to ascertain or to inquire as to the performance or observance of any
      of
      the terms, covenants or conditions of this Agreement on the part of any Borrower
      or to inspect the property (including the books and records) of any Borrower;
      (e) shall not be responsible to any Lender for the due execution, legality,
      validity, enforceability, genuineness, sufficiency or value of this Agreement
      or
      any other instrument or document furnished pursuant hereto; and (f) shall
      incur no liability under or in respect of this Agreement by acting upon any
      notice, consent, certificate or other instrument or writing (which may be by
      telecopier) believed by it to be genuine and signed or sent by the proper party
      or parties.

     

    SECTION
      8.03.  Citibank
      and Affiliates.  With respect to its Commitment, the Advances made
      by it and the Note issued to it, Citibank shall have the same rights and powers
      under this Agreement as any other Lender and may exercise the same as though
      it
      were not the Agent; and the term "Lender" or "Lenders" shall, unless otherwise
      expressly indicated, include Citibank in its individual
      capacity.  Citibank and its Affiliates may accept deposits from, lend
      money to, act as trustee under indentures of, accept investment banking
      engagements from and generally engage in any kind of business with, the Company,
      any of its Subsidiaries and any Person who may do business with or own
      securities of the Company or any such Subsidiary, all as if Citibank were not
      the Agent and without any duty to account therefor to the
      Lenders.  The Agent shall have no duty to disclose any information
      obtained or received by it or any of its Affiliates relating to the Company
      or
      any of its Subsidiaries to the extent such information was obtained or received
      in any capacity other than as Agent.  In the event that Citibank or
      any of its Affiliates shall be or become an indenture trustee under the Trust
      Indenture Act of 1939 (as amended, the “Trust Indenture Act”) in respect
      of any securities issued or guaranteed by the Company, the parties hereto
      acknowledge and agree that any payment or property received in satisfaction
      of
      or in respect of any obligation of the Company hereunder or under any Note
      by
      or

     

    
      
        
        

      

      
        
        

        
          

        

      

      
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    on
      behalf
      of Citibank in its capacity as the Agent for the benefit of any Lender under
      this Agreement or any Note (other than Citibank or an Affiliate of Citibank)
      and
      which is applied in accordance with this Agreement shall be deemed to be exempt
      from the requirements of Section 311 of the Trust Indenture Act pursuant to
      Section 311(b)(3) of the Trust Indenture Act.

     

    SECTION
      8.04.  Lender
      Credit Decision.  Each Lender acknowledges that it has,
      independently and without reliance upon the Agent or any other Lender and based
      on the financial statements referred to in Section 4.01 and such other
      documents and information as it has deemed appropriate, made its own credit
      analysis and decision to enter into this Agreement.  Each Lender also
      acknowledges that it will, independently and without reliance upon the Agent
      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.

     

    SECTION
      8.05.  Indemnification.  The
      Lenders agree to indemnify the Agent (to the extent not reimbursed by a
      Borrower), ratably according to the respective principal amounts of the
      Revolving Credit Notes then held by each of them (or if no Revolving Credit
      Notes are at the time outstanding or if any Revolving Credit Notes are held
      by
      Persons that are not Lenders, ratably according to the respective amounts of
      their Commitments), from and against any and all liabilities, obligations,
      losses, damages, penalties, actions, judgments, suits, costs, expenses or
      disbursements of any kind or nature whatsoever that may be imposed on, incurred
      by, or asserted against the Agent in any way relating to or arising out of
      this
      Agreement or any action taken or omitted by the Agent under this Agreement,
      provided that no Lender shall be liable for any portion of such
      liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
      costs, expenses or disbursements resulting from the Agent's gross negligence
      or
      willful misconduct.  Without limitation of the foregoing, each Lender
      agrees to reimburse the Agent promptly upon demand for its ratable share of
      any
      out-of-pocket expenses (including counsel fees) incurred by the Agent in
      connection with the preparation, execution, delivery, administration,
      modification, amendment or enforcement (whether through negotiations, legal
      proceedings or otherwise) of, or legal advice in respect of rights or
      responsibilities under, this Agreement, to the extent that the Agent is not
      reimbursed for such expenses by a Borrower.

     

    SECTION
      8.06.  Successor
      Agent.  The Agent may resign at any time by giving written notice
      thereof to the Lenders and each Borrower and may be removed at any time with
      or
      without cause by the Majority Lenders and such resignation or removal shall
      be
      effective upon the appointment of a successor Agent.  Upon any such
      resignation or removal, the Majority Lenders shall have the right to appoint
      a
      successor Agent, subject to the Company's approval (which shall not be
      unreasonably withheld).  If no successor Agent shall have been so
      appointed by the Majority Lenders, and shall have accepted such appointment,
      within 30 days after the retiring Agent's giving of notice of resignation or
      the
      Majority Lenders' removal of the retiring Agent, then the retiring Agent may,
      on
      behalf of the Lenders, appoint a successor Agent, which shall be a commercial
      bank organized under the laws of the United States of America or of any State
      thereof and having a combined capital and surplus of at least $250,000,000,
      subject to the Company's approval (which shall not be unreasonably
      withheld).  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, discretion, privileges and duties of the
      retiring Agent, and the retiring Agent shall be discharged from its duties
      and
      obligations under

     

    
      
        
        

      

      
        
        

        
          

        

      

      
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    this
      Agreement.  After any retiring Agent's resignation or removal
      hereunder as Agent, the provisions of this Article VIII shall inure to its
      benefit as to any actions taken or omitted to be taken by it while it was Agent
      under this Agreement.

     

    ARTICLE
      IX

     

    MISCELLANEOUS

     

    SECTION
      9.01.  Amendments,
      Etc.  No amendment or waiver of any provision of this Agreement or
      the Revolving Credit Notes, nor consent to any departure by any Borrower
      therefrom, shall in any event be effective unless the same shall be in writing
      and signed by the Majority Lenders, and then such waiver or consent shall be
      effective only in the specific instance and for the specific purpose for which
      given; provided, however, that no amendment, waiver or consent
      shall, unless in writing and signed by all the Lenders, do any of the
      following:  (a) increase the Commitment of any Lender or subject any
      Lender to any additional monetary obligations, (b) reduce the principal of,
      or interest on, the Revolving Credit Notes or any fees or other amounts payable
      hereunder, (c) postpone any date fixed for any payment of principal of, or
      interest on, the Revolving Credit Notes or any fees or other amounts payable
      hereunder, (d) release the Company from any of its obligations under Article
      VII
      or limit the liability of the Company thereunder or (e) amend or waive this
      Section 9.01 or the definition of "Majority Lenders"; and provided
further that no amendment, waiver or consent shall, unless in writing
      and signed by the Agent in addition to the Lenders required above to take such
      action, affect the rights or duties of the Agent under this Agreement or any
      Note.

     

    SECTION
      9.02.  Notices,
      Etc. (a)  All notices and other communications provided for
      hereunder shall be in writing (including telecopier communication) and mailed,
      telecopied or delivered, if to the Company or to any Designated Subsidiary,
      at
      the Company's address at Corporate Headquarters, 100 Crystal A Drive, Hershey,
      Pennsylvania 17033-0810, Attention:  Treasury Department, Fax No.
      (717) 534-6724; if to any Initial Lender, at its Domestic Lending Office
      specified opposite its name on Schedule I hereto; if to any other Lender,
      at its Domestic Lending Office specified in the Assignment and Acceptance
      pursuant to which it became a Lender; and if to the Agent, at its address at
      Two
      Penn's Way, New Castle, Delaware 19720, Attention:  Bank Loan
      Syndications, Fax No. (302) 894-6120; or, as to any Borrower or the Agent,
      at
      such other address as shall be designated by such party in a written notice
      to
      the other parties and, as to each other party, at such other address as shall
      be
      designated by such party in a written notice to the Company and the Agent;
      provided that materials as may be agreed between the Borrowers and the
      Agent may be delivered to the Agent in accordance with clause (b)
      below.  All such notices and communications shall, when mailed or
      telecopied, be effective when deposited in the mails or telecopied,
      respectively, except that notices and communications to the Agent pursuant
      to
      Article II, III or VIII shall not be effective until received by the
      Agent.  Delivery by telecopier of an executed counterpart of any
      amendment or waiver of any provision of this Agreement or the Notes or of any
      Exhibit hereto to be executed and delivered hereunder shall be effective as
      delivery of a manually executed counterpart thereof.

     

    (b)           So
      long as Citibank or any of its Affiliates is the Agent, such materials as may
      be
      agreed between the Borrowers and the Agent may be delivered to the Agent in
      an

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        49

      

    

    electronic
      medium in a format acceptable to the Agent and the Lenders by e-mail at
      oploanswebadmin@citigroup.com.  The Borrowers agree that the Agent may
      make such materials (collectively, the "Communications") available to the
      Lenders by posting such notices on Intralinks or a substantially similar
      electronic system (the "Platform").  The Borrowers acknowledge that
      (i) the distribution of material through an electronic medium is not necessarily
      secure and that there are confidentiality and other risks associated with such
      distribution, (ii) the Platform is provided "as is" and "as available" and
      (iii)
      neither the Agent nor any of its Affiliates warrants the accuracy, adequacy
      or
      completeness of the Communications or the Platform and each expressly disclaims
      liability for errors or omissions in the Communications or the
      Platform.  No warranty of any kind, express, implied or statutory,
      including, without limitation, any warranty of merchantability, fitness for
      a
      particular purpose, non-infringement of third party rights or freedom from
      viruses or other code defects, is made by the Agent or any of its Affiliates
      in
      connection with the Platform.

     

    (c)           Each
      Lender agrees that notice to it (as provided in the next sentence) (a
      "Notice") specifying that any Communications have been posted to the
      Platform shall constitute effective delivery of such information, documents
      or
      other materials to such Lender for purposes of this Agreement; provided
      that if requested by any Lender the Agent shall deliver a copy of the
      Communications to such Lender by email or telecopier.  Each Lender
      agrees (i) to notify the Agent in writing of such Lender's e-mail address to
      which a Notice may be sent by electronic transmission (including by electronic
      communication) on or before the date such Lender becomes a party to this
      Agreement (and from time to time thereafter to ensure that the Agent has on
      record an effective e-mail address for such Lender) and (ii) that any Notice
      may
      be sent to such e-mail address.

     

    SECTION
      9.03.  No
      Waiver; Remedies.  No failure on the part of any Lender or the
      Agent to exercise, and no delay in exercising, any right hereunder or under
      any
      Note shall operate as a waiver thereof; nor shall any single or partial exercise
      of any such right preclude any other or further exercise thereof or the exercise
      of any other right.  The remedies herein provided are cumulative and
      not exclusive of any remedies provided by law.

     

    SECTION
      9.04.  Costs
      and Expenses.  (a)  The Company agrees to pay or cause
      to be paid on demand all reasonable and documented costs and expenses of the
      Agent in connection with the preparation, execution, delivery, administration,
      modification and amendment of this Agreement, the Notes and the other documents
      to be delivered hereunder, including, without limitation, (A) all due
      diligence, syndication (including printing, distribution and bank meetings),
      transportation, computer, duplication, messenger costs and expenses and
      (B) the reasonable fees and expenses of counsel for the Agent with respect
      thereto and with respect to advising the Agent as to its rights and
      responsibilities under this Agreement.  The Company further agrees to
      pay or cause to be paid on demand all reasonable and documented costs and
      expenses of the Agent and the Lenders, if any (including, without limitation,
      reasonable counsel fees and expenses), in connection with the enforcement
      (whether through negotiations, legal proceedings or otherwise) of this
      Agreement, the Notes and the other documents to be delivered hereunder,
      including, without limitation, reasonable fees and expenses of counsel for
      the
      Agent and each Lender in connection with the enforcement of rights under this
      Section 9.04(a).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        50

      

    

    (b)  The
      Company agrees to indemnify and hold harmless the Agent and each Lender and
      each
      of their Affiliates and their officers, directors, employees, agents and
      advisors (each, an "Indemnified Party") from and against any and all
      claims, damages, losses, liabilities and expenses (including, without
      limitation, reasonable fees and expenses of counsel) that may be incurred by
      or
      asserted or awarded against any Indemnified Party, in each case arising out
      of
      or in connection with or by reason of, or in connection with the preparation
      for
      a defense of, any investigation, litigation or proceeding arising out of,
      related to or in connection with the Notes, this Agreement, any of the
      transactions contemplated herein or the actual or proposed use of the proceeds
      of the Advances whether or not such investigation, litigation or proceeding
      is
      brought by any Borrower or the directors, shareholders or creditors of any
      Borrower or an Indemnified Party or any other Person or any Indemnified Party
      is
      otherwise a party thereto and whether or not the transactions contemplated
      hereby are consummated, except to the extent such claim, damage, loss, liability
      or expense results from such Indemnified Party's gross negligence or willful
      misconduct.

     

    (c)  Promptly
      after receipt by an Indemnified Party of notice of the commencement of any
      action or proceeding involving any claim, damage, loss or liability referred
      to
      in paragraph (b) above, such Indemnified Party will, if a claim in respect
      thereof is to be made against any Borrower, give written notice to such Borrower
      of the commencement of such action; provided that the failure of any
      Indemnified Party to give notice as provided in this Section 9.04(c) shall
      not
      relieve such Borrower of its obligations under paragraph (b) above, except
      only
      to the extent that such Borrower actually suffers damage solely as a result
      of
      such failure to give notice.  In the event that any such action or
      proceeding is brought against an Indemnified Party, unless in such Indemnified
      Party's sole judgment (based on advise of counsel) a conflict of interest
      between such Indemnified Party and a Borrower may exist in respect thereof,
      such
      Borrower shall be entitled to participate in and to assume the defense thereof
      with counsel reasonably satisfactory to such Indemnified Party.  After
      notice from such Borrower to such Indemnified Party of its election to assume
      the defense thereof, such Borrower shall not be liable to such Indemnified
      Party
      for any legal or other expenses subsequently incurred by such Indemnified Party
      in connection with the defense thereof (other than reasonable costs of
      investigation).  No Borrower shall consent to the entry of any
      dismissal or judgment, or enter into any settlement of any pending or threatened
      action or proceeding against any Indemnified Party that is or could have been
      a
      party and for whom indemnity could have been sought under paragraph (b) above
      without the consent of such Indemnified Party unless such judgment, dismissal
      or
      settlement includes as an unconditional term thereof the giving of a
      release from all liability in respect of such action or proceeding to such
      Indemnified Party; provided that each Indemnified Party agrees that, if a
      Borrower reconfirms to such Indemnified Party that it is indemnified from all
      liability in respect of any such action or proceeding referred to in the
      preceding sentence, such Indemnified Party will not enter into any settlement
      of
      any such action or proceeding without the consent of such Borrower (which
      consent shall not be unreasonably withheld).  In addition to the
      foregoing, each Borrower shall not, in assuming the defense of any Indemnified
      Party, agree to any dismissal or settlement without the prior written consent
      of
      such Indemnified Party if such dismissal or settlement (A) would require any
      admission or acknowledgement of culpability or wrongdoing by such Indemnified
      Party or (B) would provide for any nonmonetary relief to any Persons to be
      performed by such Indemnified Party.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        51

      

    

    (d)  If
      any
      payment of principal of, or Conversion of, any Eurodollar Rate Advance or LIBO
      Rate Advance is made by any Borrower to or for the account of a Lender other
      than on the last day of the Interest Period for such Advance, as a result of
      (i) a payment or Conversion pursuant to Section 2.03(d), 2.10 or 2.12,
      (ii) acceleration of the maturity of the Advances pursuant to Section 6.01
      or for any other reason, or (iii) by an Eligible Assignee to a Lender other
      than
      on the last day of the Interest Period for such Advance upon an assignment
      of
      rights and obligations under this Agreement pursuant to Section 9.07(a) as
      a
      result of a demand by the Company pursuant to Section 2.17, such Borrower
      shall, upon demand by such Lender (with a copy of such demand to the Agent),
      pay
      to the Agent for the account of such Lender any amounts required to compensate
      such Lender for any additional losses, costs or expenses that it may reasonably
      and actually incur as a result of such payment or Conversion, including, without
      limitation, any loss (other than loss of anticipated profits), cost or expense
      incurred by reason of the liquidation or reemployment of deposits or other
      funds
      acquired by any Lender to fund or maintain such Advance.

     

    (e)  Without
      prejudice to the survival of any other agreement of any Borrower hereunder,
      the
      agreements and obligations of such Borrower contained in Sections 2.11,
      2.14 and 9.04 shall survive the payment in full of principal, interest and
      all
      other amounts payable hereunder and relating to the Advances.

     

    SECTION
      9.05.  Right
      of Set-off.  Upon (a) the occurrence and during the
      continuance of any Event of Default and (b) the making of the request or
      the granting of the consent specified by Section 6.01 to authorize the
      Agent to declare the Advances due and payable pursuant to the provisions of
      Section 6.01, each Lender is hereby authorized at any time and from time to
      time, to the fullest extent permitted by law, to set off and apply any and
      all
      deposits (general or special, time or demand, provisional or final but excluding
      trust accounts) at any time held and other indebtedness at any time owing by
      such Lender to or for the credit or the account of any Borrower against any
      and
      all of the obligations of such Borrower now or hereafter existing under this
      Agreement and the Note of such Borrower held by such Lender, whether or not
      such
      Lender shall have made any demand under this Agreement or such
      Note.  Each Lender agrees promptly to notify the relevant Borrower
      after any such set-off and application, provided that the failure to give
      such notice shall not affect the validity of such set-off and
      application.  The rights of each Lender under this Section are in
      addition to other rights and remedies (including, without limitation, other
      rights of set-off) that such Lender may have.

     

    SECTION
      9.06.  Binding
      Effect.  This Agreement shall become effective (other than
      Sections 2.01 and 2.03, which shall only become effective upon satisfaction
      of the conditions precedent set forth in Section 3.01) when it shall have
      been executed by the Company and the Agent and when the Agent shall have been
      notified by each Initial Lender that such Initial Lender has executed it and
      thereafter shall be binding upon and inure to the benefit of each Borrower,
      the
      Agent and each Lender and their respective successors and assigns, except that
      no Borrower shall have the right to assign its rights hereunder or any interest
      herein without the prior written consent of the Lenders.

     

    SECTION
      9.07.  Assignments,
      Designations and Participations.  (a)  Each Lender may
      at any time, and if demanded by the Company pursuant to Section 2.17, shall
      assign to one

     

    
      
        
        

      

      
        
        

        
          

        

      

      
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    or
      more
      Persons all or a portion of its rights and obligations under this Agreement
      (including, without limitation, all or a portion of its Commitment, the
      Revolving Credit Advances owing to it and the Revolving Credit Note or Notes
      held by it); provided, however, that (i) each such assignment
      shall be of a constant, and not a varying, percentage of all rights and
      obligations under this Agreement (other than any right to make Competitive
      Bid
      Advances, Competitive Bid Advances owing to it and Competitive Bid Notes),
      (ii) except in the case of an assignment to a Person that, immediately
      prior to such assignment, was a Lender or an assignment of all of a Lender's
      rights and obligations under this Agreement, the amount of the Commitment of
      the
      assigning Lender being assigned pursuant to each such assignment (determined
      as
      of the date of the Assignment and Acceptance with respect to such assignment)
      shall in no event be less than $10,000,000 or an integral multiple of $1,000,000
      in excess thereof, (iii) each such assignment shall be to an Eligible
      Assignee, (iv) each such assignment made as a result of a demand by the Company
      pursuant to Section 2.17 shall be arranged by the Company after consultation
      with the Agent and shall be either an assignment of all of the rights and
      obligations of the assigning Lender under this Agreement or an assignment of
      a
      portion of such rights and obligations made concurrently with another such
      assignment or other such assignments that together cover all of the rights
      and
      obligations of the assigning Lender under this Agreement, (v) no Lender
      shall be obligated to make any such assignment as a result of a demand by the
      Company pursuant to Section 2.17 (A) so long as a Default shall have
      occurred and be continuing, (B) unless and until such Lender shall have
      received one or more payments from either the Company, any other Borrower or
      one
      or more Eligible Assignees in an aggregate amount at least equal to the
      aggregate outstanding principal amount of the Advances owing to such Lender,
      together with accrued interest thereon to the date of payment of such principal
      amount and all other amounts payable to such Lender under this Agreement
      (including, but not limited to, any amounts owing under Section 2.11 and Section
      2.14), and the Company shall have satisfied all of its other obligations under
      this Agreement as of the effective date of the assignment and (C) if any such
      Eligible Assignee is not an existing Lender, the Company shall have paid to
      the
      Agent a processing and recordation fee of $1,000, (vi) the parties to each
      such assignment shall execute and deliver to the Agent, for its acceptance
      and
      recording in the Register, an Assignment and Acceptance, together with any
      Revolving Credit Note subject to such assignment and, if such assignment does
      not occur as a result of a demand by the Company pursuant to Section 2.17 (in
      which case the Company shall pay the fee required by clause (v)(C) of this
      Section 9.07(a)), a processing and recordation fee of $3,500, and (vii) in
      the
      case of an assignment to any Affiliate of such Lender that is engaged in the
      business of commercial banking, notice thereof shall have been given to the
      Company and the Agent.  Upon such execution, delivery, acceptance and
      recording, from and after the effective date specified in each Assignment and
      Acceptance, (x) the assignee thereunder shall be a party hereto and, to the
      extent that rights and obligations hereunder have been assigned to it pursuant
      to such Assignment and Acceptance, have the rights and obligations of a Lender
      hereunder and (y) the Lender assignor thereunder shall, to the extent that
      rights and obligations hereunder have been assigned by it pursuant to such
      Assignment and Acceptance, relinquish its rights and be released from its
      obligations under this Agreement (and, in the case of an Assignment and
      Acceptance covering all or the remaining portion of an assigning Lender's rights
      and obligations under this Agreement, such Lender shall cease to be a party
      hereto).

     

    (b)  By
      executing and delivering an Assignment and Acceptance, the Lender assignor
      thereunder and the assignee thereunder confirm to and agree with each other
      and
      the

     

    
      
        
        

      

      
        
        

        
          

        

      

      
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    other
      parties hereto as follows:  (i) other than as provided in such
      Assignment and Acceptance, such assigning Lender makes no representation or
      warranty and assumes no responsibility with respect to any statements,
      warranties or representations made in or in connection with this Agreement
      or
      the execution, legality, validity, enforceability, genuineness, sufficiency
      or
      value of this Agreement or any other instrument or document furnished pursuant
      hereto; (ii) such assigning Lender makes no representation or warranty and
      assumes no responsibility with respect to the financial condition of any
      Borrower or the performance or observance by any Borrower of any of its
      obligations under this Agreement or any other instrument or document furnished
      pursuant hereto; (iii) such assignee confirms that it has received a copy
      of this Agreement, together with copies of the financial statements referred
      to
      in Section 4.01(e), the most recent financial statements referred to in
      Section 5.01(h) and such other documents and information as it has deemed
      appropriate to make its own credit analysis and decision to enter into such
      Assignment and Acceptance; (iv) such assignee will, independently and
      without reliance upon the Agent, such assigning Lender or any other Lender
      and
      based on such documents and information as it shall deem appropriate at the
      time, continue to make its own credit decisions in taking or not taking action
      under this Agreement; (v) such assignee confirms that it is an Eligible
      Assignee; (vi) such assignee appoints and authorizes the Agent to take such
      action as agent on its behalf and to exercise such powers and discretion under
      this Agreement as are delegated to the Agent by the terms hereof, together
      with
      such powers and discretion as are reasonably incidental thereto; and
      (vii) such assignee agrees that it will perform in accordance with their
      terms all of the obligations that by the terms of this Agreement are required
      to
      be performed by it as a Lender.

     

    (c)  Upon
      its
      receipt of an Assignment and Acceptance executed by an assigning Lender and
      an
      assignee representing that it is an Eligible Assignee, together with any
      Revolving Credit Note or Notes subject to such assignment, the Agent shall,
      if
      such Assignment and Acceptance has been completed and is in substantially the
      form of Exhibit C hereto, (i) accept such Assignment and Acceptance,
      (ii) record the information contained therein in the Register and
      (iii) give prompt notice thereof to each Borrower.

     

    (d)  The
      Agent
      shall maintain at its address referred to in Section 9.02 a copy of each
      Assignment and Acceptance delivered to and accepted by it and a register for
      the
      recordation of the names and addresses of the Lenders and the Commitment of,
      and
      principal amount of the Advances owing to, each Lender from time to time (the
      "Register").  The entries in the Register shall be conclusive
      and binding for all purposes, absent manifest error, and each Borrower, the
      Agent and the Lenders may treat each Person whose name is recorded in the
      Register as a Lender hereunder for all purposes of this
      Agreement.  The Register shall be available for inspection by any
      Borrower or any Lender at any reasonable time and from time to time upon
      reasonable prior notice.

     

    (e)  Each
      Lender may sell participations to one or more banks or other entities (other
      than any Borrower or any of its Affiliates) in or to all or a portion of its
      rights and obligations under this Agreement (including, without limitation,
      all
      or a portion of its Commitment, the Advances owing to it and any Note or Notes
      held by it); provided, however, that (i) such Lender's
      obligations under this Agreement (including, without limitation, its Commitment
      to any Borrower hereunder) shall remain unchanged, (ii) such Lender shall
      remain solely responsible to the other parties hereto for the performance of
      such obligations, (iii) such

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        54

      

    

    Lender
      shall remain the holder of any such Note for all purposes of this Agreement,
      (iv) each Borrower, the Agent and the other Lenders shall continue to deal
      solely and directly with such Lender in connection with such Lender's rights
      and
      obligations under this Agreement and (v) no participant under any such
      participation shall have any right to approve any amendment or waiver of any
      provision of this Agreement or any Note, or any consent to any departure by
      any
      Borrower therefrom, except to the extent that such amendment, waiver or consent
      would reduce the principal of, or interest on, the Advances or any fees or
      other
      amounts payable hereunder, in each case to the extent subject to such
      participation, or postpone any date fixed for any payment of principal of,
      or
      interest on, the Advances or any fees or other amounts payable hereunder, in
      each case to the extent subject to such participation.  Each Lender
      agrees that, promptly upon selling any such participation in accordance with
      this Section 9.07(e), such Lender shall deliver written notice thereof to the
      Company.

     

    (f)  Any
      Lender may, in connection with any assignment or participation or proposed
      assignment or participation pursuant to this Section 9.07, disclose to the
      assignee, or participant or proposed assignee, or participant, any information
      relating to the Company or any other Borrower furnished to such Lender by or
      on
      behalf of such Borrower; provided that, prior to any such disclosure, the
      assignee, or participant or proposed assignee or participant shall agree to
      preserve the confidentiality of any Company Information relating to such
      Borrower received by it from such Lender.

     

    (g)  Notwithstanding
      any other provision set forth in this Agreement, any Lender may at any time
      create a security interest in all or any portion of its rights under this
      Agreement (including, without limitation, the Advances owing to it and any
      Note
      or Notes held by it) in favor of any Federal Reserve Bank in accordance with
      Regulation A of the Board of Governors of the Federal Reserve
      System.

     

    SECTION
      9.08.  Designated
      Subsidiaries.  (a)  Designation.  The
      Company may at any time, and from time to time, upon not less than 15 Business
      Days’ notice, notify the Agent that the Company intends to designate a
      Subsidiary as a "Designated Subsidiary" for purposes of this
      Agreement.  On or after the date that is 15 Business Days after such
      notice, upon delivery to the Agent and each Lender of a
      Designation Letter duly executed by the Company and the respective Subsidiary
      and substantially in the form of Exhibit E hereto, such Subsidiary shall
      thereupon become a "Designated Subsidiary" for purposes of this Agreement and,
      as such, shall have all of the rights and obligations of a Borrower
      hereunder.  The Agent shall promptly notify each Lender of the
      Company’s notice of such pending designation by the Company and the identity of
      the respective Subsidiary.  Following the giving of any notice
      pursuant to this Section 9.08(a), if the designation of such Designated
      Subsidiary obligates the Agent or any Lender to comply with "know your customer"
      or similar identification procedures in circumstances where the necessary
      information is not already available to it, the Company shall, promptly upon
      the
      request of the Agent or any Lender, supply such documentation and other evidence
      as is reasonably requested by the Agent or any Lender in order for the Agent
      or
      such Lender to carry out and be satisfied it has complied with the results
      of
      all necessary "know your customer" or other similar checks under all applicable
      laws and regulations.

     

    If
      the
      Company shall designate as a Designated Subsidiary hereunder any Subsidiary
      not
      organized under the laws of the United States or any State thereof, any
      Lender

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        55

      

    

    may,
      with
      notice to the Agent and the Company, fulfill its Commitment by causing an
      Affiliate of such Lender organized in the same jurisdiction as such Designated
      Subsidiary or another foreign jurisdiction agreed to by such Lender and the
      Company, to act as the Lender in respect of such Designated Subsidiary, and
      such
      Lender shall, to the extent of Advances made to such Designated Subsidiary,
      be
      deemed for all purposes hereof to have satisfied its Commitment hereunder in
      respect of such Designated Subsidiary.

     

    As
      soon
      as practicable after receiving notice from the Company or the Agent of the
      Company's intent to designate a Subsidiary as a Designated Subsidiary, and
      in
      any event no later than five Business Days after the delivery of such notice,
      for a Designated Subsidiary that is organized under the laws of a jurisdiction
      other than of the United States or a political subdivision thereof, any Lender
      that may not legally lend to, establish credit for the account of and/or do
      any
      business whatsoever with such Designated Subsidiary directly or through an
      Affiliate of such Lender as provided in the immediately preceding paragraph
      (a
      "Protesting Lender") shall so notify the Company and the Agent in
      writing.  With respect to each Protesting Lender, the Company shall,
      effective on or before the date that such Designated Subsidiary shall have
      the
      right to borrow hereunder, either (A) notify the Agent and such Protesting
      Lender that the Commitments of such Protesting Lender shall be terminated;
      provided that such Protesting Lender shall have received payment of an
      amount equal to the outstanding principal of its Advances, accrued interest
      thereon, accrued fees and all other amounts payable to it hereunder, from the
      assignee (to the extent of such outstanding principal and accrued interest
      and
      fees) or the Company or the relevant Designated Subsidiary (in the case of
      all
      other amounts), or (B) cancel its request to designate such Subsidiary as a
      "Designated Subsidiary" hereunder.

     

    (b)  Termination.  Upon
      the payment and performance in full of all of the indebtedness, liabilities
      and
      obligations under this Agreement and relating to the Advances of any Designated
      Subsidiary then, so long as at the time no Notice of Revolving Credit Borrowing
      or Notice of Competitive Bid Borrowing in respect of such Designated Subsidiary
      is outstanding, such Subsidiary's status as a "Designated Subsidiary" shall
      terminate upon notice to such effect from the Agent to the Lenders (which notice
      the Agent shall give promptly upon its receipt of a request therefor from the
      Company).  Thereafter, the Lenders shall be under no further
      obligation to make any Advance hereunder to such Designated
      Subsidiary.

     

    SECTION
      9.09.  Confidentiality.  Each
      of the Agent and the Lenders agrees to maintain the confidentiality of the
      Company Information (as defined below), and agrees that it shall only use such
      Company Information in connection with the transactions contemplated by this
      Agreement and not disclose such information other than (a) to its
      Affiliates and to its and its Affiliates’ respective managers, administrators,
      trustees, partners, directors, officers, employees, agents, advisors and other
      representatives on a need to know basis that are expected to be involved in
      the
      evaluation of such information in connection with the transactions contemplated
      by this Agreement (it being understood that the Persons to whom such disclosure
      is made will be informed of the confidential nature of such Company Information
      and instructed to keep such Company Information confidential in accordance
      with
      the terms hereof), (b) to the extent requested by any regulatory authority
      having jurisdiction over it or its Affiliates (including any self-regulatory
      authority, such as the National Association of Insurance Commissioners),
      (c) to the extent required by applicable laws or regulations or by any
      subpoena or similar legal process provided that the Person making such
      disclosures shall, to the extent permitted by law and to the

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        56

      

    

    extent
      practicable, provide the Company with advance notice thereof, (d) to any
      other party hereto, (e) subject to an agreement for the benefit of the
      Company containing provisions substantially the same as those of this Section,
      to (i) any assignee of or participant in, or any prospective assignee of or
      participant in, any of its rights or obligations under this Agreement or
      (ii) any actual or prospective party (or its managers, administrators,
      trustees, partners, directors, officers, employees, agents, advisors and other
      representatives) to any swap or derivative or similar transaction under which
      payments are to be made by reference to the Borrowers and their obligations,
      this Agreement or payments hereunder, (iii) any rating agency, or (iv) the
      CUSIP
      Service Bureau or any similar organization, (f) with the written consent of
      the Company or (g) to the extent such Company Information (x) becomes
      publicly available other than as a result of a breach of this Section or
      (y) becomes available to the Agent, any Lender or any of their respective
      Affiliates on a nonconfidential basis from a source other than the
      Company.

     

    For
      purposes of this Section, “Company Information” means all information
      received from the Company or any of its Subsidiaries relating to the Company
      or
      any of its Subsidiaries or any of their respective businesses, other than any
      such information that is available to the Agent or any Lender on a
      nonconfidential basis prior to disclosure by the Company or any of its
      Subsidiaries.  Any Person required to maintain the confidentiality of
      Company Information as provided in this Section shall be considered to have
      complied with its obligation to do so if such Person has exercised the same
      degree of care to maintain the confidentiality of such Company Information
      as
      such Person would accord to its own confidential information.

     

    SECTION
      9.10.  Governing
      Law.  This Agreement and the Notes shall be governed by, and
      construed in accordance with, the laws of the State of
      New York.

     

    SECTION
      9.11.  Execution
      in Counterparts.  This Agreement may be executed in any number of
      counterparts and by different parties hereto in separate counterparts, each
      of
      which when so executed shall be deemed to be an original and all of which taken
      together shall constitute one and the same agreement.  Delivery of an
      executed counterpart of a signature page to this Agreement by telecopier or
      other electronic communication shall be effective as delivery of a manually
      executed counterpart of this Agreement.

     

    SECTION
      9.12.  Jurisdiction,
      Etc.  (a)  Each of the parties hereto hereby irrevocably
      and unconditionally submits to the exclusive jurisdiction only of any
      New York State court or federal court of the United States of America
      sitting in New York City, and any appellate court from any thereof, in any
      action or proceeding arising out of or relating to this Agreement or the Notes,
      or for recognition or enforcement of any judgment, and each of the parties
      hereto hereby irrevocably and unconditionally agrees that all claims in respect
      of any such action or proceeding may be heard and determined only in any such
      New York State court or, to the extent permitted by law, in such federal
      court.  Notwithstanding the foregoing sentence, each of the parties
      hereto agrees that a final judgment in any such action or proceeding shall
      be
      conclusive and may be enforced in other jurisdictions by suit on the judgment
      or
      in any other manner provided by law.  Each Designated Subsidiary that
      has its principal place of business outside of the United States of America
      hereby agrees that service of process in any such action or proceeding may
      be
      made upon the Company at its offices specified in Section 9.02 (the "Process
      Agent") and each such Designated Subsidiary hereby irrevocably appoints the
      Process

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        57

      

    

    Agent
      its
      authorized agent to accept such service of process, and agrees that the failure
      of the Process Agent to give any notice of any such service shall not impair
      or
      affect the validity of such service or of any judgment rendered in any action
      or
      proceeding based thereon.  Each Borrower hereby further irrevocably
      consents to the service of process in any action or proceeding in such courts
      by
      the mailing thereof by any parties hereto by registered or certified mail,
      postage prepaid, to such Borrower at its address set forth in Section
      9.02.  Nothing in this Agreement shall affect any right that any party
      may otherwise have to serve legal process in any other manner permitted by
      law.  To the extent that any Designated Subsidiary has or hereafter
      may acquire any immunity from jurisdiction of any court or from any legal
      process (whether through service or notice, attachment prior to judgment,
      attachment in aid of execution, execution or otherwise) with respect to itself
      or its property, such Designated Subsidiary hereby irrevocably waives such
      immunity in respect of its obligations under this Agreement.

     

    (b)  Each
      of
      the parties hereto irrevocably and unconditionally waives, to the fullest extent
      it may legally and effectively do so, any objection that it may now or hereafter
      have to the laying of venue of any suit, action or proceeding arising out of
      or
      relating to this Agreement or the Notes in any New York State or federal
      court of the United States of America sitting in New York
      City.  Each of the parties hereto hereby irrevocably waives, to the
      fullest extent permitted by law, the defense of an inconvenient forum to the
      maintenance of such action or proceeding in any such court.

     

    SECTION
      9.13.  Patriot
      Act.  Each Lender hereby notifies each Borrower that
      pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56
      (signed into law October 26, 2001)) (the "Act"), it is required to obtain,
      verify and record information that identifies each borrower, guarantor or
      grantor (the "Loan Parties"), which information includes the name and address
      of
      each Loan Party and other information that will allow such Lender to identify
      such Loan Party in accordance with the Act.

     

    [THE
      REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        58

      

    

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

    

    

    
      	 	
              THE
                HERSHEY COMPANY

            
	 	
               

               

              By:
                /s/ R. C. Stroh

            
	 	
              Title:  Vice
                President, Treasurer

            
	 	 
	 	
              By:
                /s/ Humberto Alfonso

            
	 	
              Title:  Senior
                Vice President,

              Chief
                Financial Officer

            
	 	 
	 	
              CITIBANK,
                N.A.,

              As
                Administrative Agent

               

              By:
                /s/ Carolyn A. Kee

            
	 	
              Title:  Vice
                President

            
	 	 
	
              Lenders

            	 
	 	 
	 	
              CITIBANK,
                N.A.,

               

              By:
                /s/ Carolyn A. Kee

            
	 	
              Title:  Vice
                President

            
	 	 
	 	
              BANK
                OF AMERICA, N.A.

               

              By:
                /s/ J. Casey Cosgrove

            
	 	
              Title:  Vice
                President

            
	 	 
	 	
              UBS
                LOAN FINANCE LLC

               

              By:/s/
                Irja R. Otsa

            
	 	
              Title:  Associate
                Director

            
	 	 
	 	
              By:
                /s/ Richard L. Tavrow

            
	 	
              Title:  Director

            

    

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      I TO THE CREDIT AGREEMENT

     

    COMMITMENTS
      AND APPLICABLE LENDING OFFICES

     

    
      
        	
                Name
                  of Initial Lender

              	
                Commitment

              	
                Domestic
                  Lending Office

              	
                Eurodollar
                  Lending Office

              
	
                Bank
                  of America, N.A.

              	
                $100,000,000

              	
                901
                  Main Street, 14th
                  Floor

                Dallas,
                  TX  75202

                Attn:  Jennifer
                  Ollek

                T:  (214)
                  209-2642

                F:  (214)
                  290-8374

              	
                901
                  Main Street, 14th
                  Floor

                Dallas,
                  TX  75202

                Attn:  Jennifer
                  Ollek

                T:  (214)
                  209-2642

                F:  (214)
                  290-8374

              
	
                Citibank,
                  N.A.

              	
                $100,000,000

              	
                Two
                  Penns Way

                New
                  Castle, DE  19720

                Attn:  Bank
                  Loan Syndications

                T:  (302)
                  894-6029

                F:  (212)
                  994-0961

              	
                Two
                  Penns Way

                New
                  Castle, DE  19720

                Attn:  Bank
                  Loan Syndications

                T:  (302)
                  894-6029

                F:  (212)
                  994-0961

              
	
                UBS
                  Loan Finance LLC

              	
                $100,000,000

              	
                677
                  Washington Blvd.

                Stamford,
                  CT  06901

                Attn:  Safraz
                  Hassan

                T:  (203)
                  719-3143

                F:  (203)
                  719-3888

              	
                677
                  Washington Blvd.

                Stamford,
                  CT  06901

                Attn:  Safraz
                  Hassan

                T:  (203)
                  719-3143

                F:  (203)
                  719-3888

              
	 	 	 	 
	
                TOTAL
                  OF

                  COMMITMENTS

              	
                $300,000,000

              	 	 

      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    SCHEDULE
      3.01(b)

     

    DISCLOSED
      LITIGATION

     

    

     

    NONE

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    SCHEDULE
      4.01(c)

     

    REQUIRED
      AUTHORIZATIONS AND APPROVALS

     

    NONE

    

    

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-1 - FORM OF

    REVOLVING
      CREDIT

    PROMISSORY
      NOTE

     

    
      	 U.S.$_______________  	
               Dated:
                August 24, 2007

            

    

     

    FOR
      VALUE
      RECEIVED, the undersigned, [NAME OF BORROWER], a _________________________
      corporation (the "Borrower"), HEREBY PROMISES TO PAY to the order of
      _________________________ (the "Lender") for the account of its
      Applicable Lending Office on the Termination Date (each as defined in the Credit
      Agreement referred to below) the principal sum of U.S.$[amount of the Lender's
      Commitment in figures] or, if less, the aggregate principal amount of the
      Revolving Credit Advances (as defined in the Credit Agreement referred to below)
      made by the Lender to the Borrower pursuant to the Credit Agreement dated as
      of
      August 24, 2007 among The Hershey Company, the Lender and certain other lenders
      party thereto, Citibank, N.A., as administrative agent (the "Agent") for
      the Lender and such other lenders, Bank of America, N.A., as syndication agent,
      UBS Loan Finance LLC, as documentation agent, and Citigroup Global Markets
      Inc.
      and Banc America Securities LLC, as joint lead arrangers and joint book managers
      (as amended or modified from time to time, the "Credit Agreement"; the
      terms defined therein being used herein as therein defined), outstanding on
      the
      Termination Date.

     

    The
      Borrower promises to pay interest on the unpaid principal amount of each
      Revolving Credit Advance from the date of such Revolving Credit Advance until
      such principal amount is paid in full, at such interest rates, and payable
      at
      such times, as are specified in the Credit Agreement.

     

    Both
      principal and interest are payable in lawful money of the United States of
      America to Citibank, N.A., as Agent, at the Agent's Account in same day
      funds.  Each Revolving Credit Advance owing to the Lender by the
      Borrower pursuant to the Credit Agreement, and all payments made on account
      of
      principal thereof, shall be recorded by the Lender and, prior to any transfer
      hereof, endorsed on the grid attached hereto which is part of this Promissory
      Note.

     

    This
      Promissory Note is one of the Revolving Credit Notes referred to in, and is
      entitled to the benefits of, the Credit Agreement.  The Credit
      Agreement, among other things, (i) provides for the making of Revolving
      Credit Advances by the Lender to the Borrower and each other "Borrower"
      thereunder from time to time in an aggregate amount not to exceed at any time
      outstanding the U.S. dollar amount first above mentioned, the indebtedness
      of
      the Borrower resulting from each such Revolving Credit Advance being evidenced
      by this Promissory Note, and (ii) contains provisions in Sections 6.01 and
      2.10, respectively, for acceleration of the maturity hereof upon the happening
      of certain stated events and also for prepayments on account of principal hereof
      prior to the maturity hereof upon the terms and conditions therein
      specified.

     

    The
      Borrower hereby waives presentment, demand, protest and notice of any
      kind.  No failure to exercise, and no delay in exercising, any rights
      hereunder on the part of the holder hereof shall operate as a waiver of such
      rights.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        2

      

    

    This
      promissory note shall be governed by, and construed in accordance with the
      laws
      of the State of New York.

     

    

    

     

    
      	
              [NAME
                OF BORROWER]

               

              By_____________________

            
	
              Title:

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ADVANCES
      AND PAYMENTS OF PRINCIPAL

    

    

      
        	
                 

                 

                Date

              	
                 

                 

                Amount

                of

                Advance

                 

              	
                 

                 

                Interest

                Rate

                 

              	
                 

                 

                Interest

                Period

              	
                 

                 

                Amount
                  of

                Principal
                  

                Paid

                or
                  Prepaid

              	
                 

                 

                Unpaid
                  Principal

                Balance

              	
                 

                 

                Notation

                Made
                  By

              
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

      

 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-2 - FORM OF

    COMPETITIVE
      BID

    PROMISSORY
      NOTE

     

    
      	 U.S.$_______________  	
              Dated:  _______________

            

                                                                             

    FOR
      VALUE
      RECEIVED, the undersigned, [NAME OF BORROWER], a _________________________
      corporation (the "Borrower"), HEREBY PROMISES TO PAY to the order of
      _________________________ (the "Lender") for the account of its
      Applicable Lending Office (as defined in the Credit Agreement dated as of August
      24, 2007 among The Hershey Company, the Lender and certain other lenders party
      thereto, Citibank, N.A., as administrative agent (the "Agent") for the
      Lender and such other lenders, Bank of America, N.A., as syndication agent,
      UBS
      Loan Finance LLC, as documentation agent, and Citigroup Global Markets Inc.
      and
      Banc America Securities LLC, as joint lead arrangers and joint book managers
      (as
      amended or modified from time to time, the "Credit Agreement"; the terms
      defined therein being used herein as therein defined)), on _______________,
      the
      principal amount of U.S.$_______________.

     

    The
      Borrower promises to pay interest on the unpaid principal amount hereof from
      the
      date hereof until such principal amount is paid in full, at the interest rate
      and payable on the interest payment date or dates provided below:

     

    Interest
      Rate: _____% per annum (calculated on the basis of a year of _____ days for
      the
      actual number of days elapsed).

     

    Both
      principal and interest are payable in lawful money of the United States of
      America to Citibank, N.A. for the account of the Lender at the Agent's Account
      in same day funds.

     

    This
      Promissory Note is one of the Competitive Bid Notes referred to in, and is
      entitled to the benefits of, the Credit Agreement.  The Credit
      Agreement, among other things, contains provisions in Section 6.01 for
      acceleration of the maturity hereof upon the happening of certain stated
      events.

     

    The
      Borrower hereby waives presentment, demand, protest and notice of any
      kind.  No failure to exercise, and no delay in exercising, any rights
      hereunder on the part of the holder hereof shall operate as a waiver of such
      rights.

     

    This
      Promissory Note shall be governed by, and construed in accordance with, the
      laws
      of the State of New York.

     

    
      	
              [NAME
                OF BORROWER]

               

              By_____________________

            
	
              Title:

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B-1 - FORM OF NOTICE OF

    REVOLVING
      CREDIT BORROWING

     

    Citibank,
      N.A., as Agent

      for
      the Lenders party

      to
      the Credit Agreement

      referred
      to below

    Two
      Penn’s Way

    New
      Castle, Delaware
      19720                                                                                                [Date]

     

    Attention:  Bank
      Loan Syndications

     

    Ladies
      and Gentlemen:

     

    The
      undersigned, [Name of Borrower], refers to the Credit Agreement, dated as of
      August 24, 2007 (as amended or modified from time to time, the "Credit
      Agreement", the terms defined therein being used herein as therein defined),
      among The Hershey Company, certain Lenders party thereto, Citibank, N.A., as
      administrative agent (the "Agent") for said Lenders, Bank of America,
      N.A., as syndication agent, UBS Loan Finance LLC, as documentation agent, and
      Citigroup Global Markets Inc. and Banc America Securities LLC, as joint lead
      arrangers and joint book managers, and hereby gives you notice, irrevocably,
      pursuant to Section 2.02 of the Credit Agreement that the undersigned
      hereby requests a Revolving Credit Borrowing under the Credit Agreement, and
      in
      that connection sets forth below the information relating to such Revolving
      Credit Borrowing (the "Proposed Revolving Credit Borrowing") as required
      by Section 2.02(a) of the Credit Agreement:

     

    (i)
      The
      Business Day of the Proposed Revolving Credit Borrowing is
      _______________.

     

    (ii)
      The
      Type of Advances comprising the Proposed Revolving Credit Borrowing is [Base
      Rate Advances] [Eurodollar Rate Advances].

     

    (iii)
      The
      aggregate amount of the Proposed Revolving Credit Borrowing is
      $_______________.

     

    [(iv)
      The
      initial Interest Period for each Eurodollar Rate Advance made as part of the
      Proposed Revolving Credit Borrowing is _____ month[s].]

     

    The
      undersigned hereby certifies that the following statements are true on the
      date
      hereof, and will be true on the date of the Proposed Revolving Credit
      Borrowing:

     

    (A)
      the
      representations and warranties of the Company contained in Section 4.01 of
      the Credit Agreement (except the representations set forth in the last sentence
      of subsection (e) thereof and in subsection (f) thereof (other than
      clause (i)(B) thereof) are correct, before and after giving effect to the
      Proposed Revolving Credit Borrowing and to the application of the proceeds
      therefrom, as though made on and as of such date*[and the

     

    
      
        

      

      
        *    This
          language
          should be added only if the Borrower is a Designated
          Subsidiary.

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    representations
      and warranties contained in the Designation Letter of the undersigned is
      correct, before and after giving effect to the Proposed Revolving Credit
      Borrowing and to the application of the proceeds therefrom, as though made
      on
      and as of such date]; and

     

    (B)
      no
      event has occurred and is continuing, or would result from such Proposed
      Revolving Credit Borrowing or from the application of the proceeds therefrom,
      that constitutes a Default.

     

     

    
      
        	 
                
                Very
                  truly yours,

                 

              
	
                [NAME
                  OF BORROWER]

                 

                By_____________________

              
	
                   
                  Title:

              

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B-2 - FORM OF NOTICE OF

    COMPETITIVE
      BID BORROWING

     

    Citibank,
      N.A., as Agent

      for
      the Lenders party

      to
      the Credit Agreement

      referred
      to below

    Two
      Penn’s Way

    New
      Castle, Delaware
      19720                                                                                                [Date]

    

     

    Attention:  Bank
      Loan Syndications

     

    Ladies
      and Gentlemen:

     

    The
      undersigned, [Name of Borrower], refers to the Credit Agreement, dated as of
      August 24, 2007 (as amended or modified from time to time, the "Credit
      Agreement", the terms defined therein being used herein as therein defined),
      among The Hershey Company, certain Lenders party thereto, Citibank, N.A., as
      administrative agent (the "Agent") for said Lenders, Bank of America,
      N.A., as syndication agent, UBS Loan Finance LLC, as documentation agent, and
      Citigroup Global Markets Inc. and Banc America Securities LLC, as joint lead
      arrangers and joint book managers, and hereby gives you notice, irrevocably,
      pursuant to Section 2.03 of the Credit Agreement that the undersigned
      hereby requests a Competitive Bid Borrowing under the Credit Agreement, and
      in
      that connection sets forth the terms on which such Competitive Bid Borrowing
      (the "Proposed Competitive Bid Borrowing") is requested to be
      made:

     

    
      	
              (A)

            	
              Date
                of Competitive Bid Borrowing

            	
              __________________________

            
	 	 	 
	
              (B)

            	
              Principal
                Amount

              of
                Competitive Bid Borrowing

            	
               

              __________________________

            
	 	 	 
	
              (C)

            	
              [Maturity
                Date] [Interest Period]*

            	
              __________________________

            
	 	 	 
	
              (D)

            	
              Interest
                Rate Basis

              (LIBO
                Rate or Fixed Rate)

            	
               

              __________________________

            
	 	 	 
	
              (E)

            	
              Interest
                Payment Date(s)

            	
              __________________________

            
	 	 	 
	
              (F)

            	
              _________________________

            	
              __________________________

            
	 	 	 
	
              (G)

            	
              _________________________

            	
              __________________________

            
	 	 	 
	
              (H)

            	
              _________________________

            	
              __________________________

            

    

    

    
      
        

      

    

    *    Which
      shall be
      subject to the definition of "Interest Period" and end on or before the
      Termination Date.

    
      
        
        

      

      
        
        

        
          

        

      

      
        2

      

       

    

    The
      undersigned hereby certifies that the following statements are true on the
      date
      hereof, and will be true on the date of the Proposed Competitive Bid
      Borrowing:

     

    (a)  the
      representations and warranties of the Company contained in Section 4.01
      (except the representations set forth in the last sentence of subsection (e)
      thereof and in subsection (f) thereof (other than clause (i)(B) thereof)) are
      correct, before and after giving effect to the Proposed Competitive Bid
      Borrowing and to the application of the proceeds therefrom, as though made
      on
      and as of such date†[and
      the representations and warranties contained in the Designation Letter of the
      undersigned is correct, before and after giving effect to the Proposed
      Competitive Bid Borrowing and to the application of the proceeds therefrom,
      as
      though made on and as of such date];

     

              
      (b)   no event has occurred and is continuing, or would result from
      the Proposed Competitive Bid Borrowing or from the application of the proceeds
      therefrom, that   constitutes a Default;

     

    (c)  no
      event has occurred
      and no circumstance exists as a result of which the information concerning
      the
      undersigned that has been provided to the Agent and each Lender by the
      undersigned in connection with the Credit Agreement would include an untrue
      statement of a material fact or omit to state any material fact or any fact
      necessary to make the statements contained therein, in the light of the
      circumstances under which they were made, not misleading; and

     

                (d)  the
      aggregate amount of the Proposed Competitive Bid Borrowing and all other
      Borrowings to be made on the same day under the Credit Agreement is within
      the
      aggregate amount of the unused Commitments of the Lenders.

     

    The
      undersigned hereby confirms that the Proposed Competitive Bid Borrowing is
      to be
      made available to it in accordance with Section 2.03(a)(v) of the Credit
      Agreement.

     

    
      	
              Very
                truly yours,

               

            
	
              [NAME
                OF BORROWER]

               

              By_____________________

            
	
                 
                Title:

            

    

     

    
      
        

      
†    This
      language
      should be added only if the Borrower is a Designated Subsidiary.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    EXHIBIT
      C
      - FORM OF

    ASSIGNMENT
      AND ACCEPTANCE

     

    [Date]

     

    

    Reference
      is made to the Credit Agreement dated as of August 24, 2007 (as amended or
      modified from time to time, the "Credit Agreement") among The Hershey
      Company, a Delaware corporation (the "Company"), the Lenders (as defined
      in the Credit Agreement), Citibank, N.A., as administrative agent (the
      "Agent") for the Lenders, Bank of America, N.A., as syndication agent,
      UBS Loan Finance LLC, as documentation agent, and Citigroup Global Markets
      Inc.
      and Banc America Securities LLC, as joint lead arrangers and joint book
      managers.  Terms defined in the Credit Agreement are used herein with
      the same meaning.

     

    The
      "Assignor" and the "Assignee" referred to on Schedule I hereto agree as
      follows:

     

    1.           The
      Assignor hereby sells and assigns to the Assignee, and the Assignee hereby
      purchases and assumes from the Assignor, an interest in and to the Assignor's
      rights and obligations under the Credit Agreement as of the date hereof (other
      than in respect of Competitive Bid Advances and Competitive Bid Notes) equal
      to
      the percentage interest specified on Schedule 1 hereto of all outstanding rights
      and obligations under the Credit Agreement (other than in respect of Competitive
      Bid Advances and Competitive Bid Notes).  After giving effect to such
      sale and assignment, the Assignee's Commitment and the amount of the Revolving
      Credit Advances owing to the Assignee will be as set forth on Schedule 1
      hereto.

     

    2.           The
      Assignor (i) represents and warrants that it is the legal and beneficial
      owner of the interest being assigned by it hereunder and that such interest
      is
      free and clear of any adverse claim; (ii) makes no representation or
      warranty and assumes no responsibility with respect to any statements,
      warranties or representations made in or in connection with the Credit Agreement
      or the execution, legality, validity, enforceability, genuineness, sufficiency
      or value of the Credit Agreement or any other instrument or document furnished
      pursuant thereto; (iii) makes no representation or warranty and assumes no
      responsibility with respect to the financial condition of any Borrower or the
      performance or observance by any Borrower of any of its obligations under the
      Credit Agreement or any other instrument or document furnished pursuant thereto;
      and (iv) attaches each Revolving Credit Note of a Borrower held by the
      Assignor and requests that the Agent exchange each Revolving Credit Note for
      a
      new Revolving Credit Note of such Borrower payable to the order of the Assignee
      in an amount equal to the Commitment assumed by the Assignee pursuant hereto
      or
      new Revolving Credit Notes of such Borrower payable to the order of the Assignee
      in an amount equal to the Commitment assumed by the Assignee pursuant hereto
      and
      the Assignor in an amount equal to the Commitment retained by the Assignor
      under
      the Credit Agreement, respectively, as specified on Schedule 1
      hereto.

     

    3.           The
      Assignee (i) represents and warrants that it is legally authorized to enter
      into this Assignment and Acceptance; (ii) confirms that it has received a copy
      of the Credit Agreement, together with copies of the financial statements
      referred to in Section 4.01(e) thereof, the most recent financial
      statements referred to in Section 5.01(h) thereof and such other 

    
      
        
        

      

      
        
        

        
          

        

      

      
        2

      

    

     

    documents
      and information as it has deemed appropriate to make its own credit analysis
      and
      decision to enter into this Assignment and Acceptance; (iii) agrees that it
      will, independently and without reliance upon the Agent, the Assignor or any
      other Lender and based on such documents and information as it shall deem
      appropriate at the time, continue to make its own credit decisions in taking
      or
      not taking action under the Credit Agreement; (iv) confirms that it is an
      Eligible Assignee; (v) appoints and authorizes the Agent to take such
      action as agent on its behalf and to exercise such powers and discretion under
      the Credit Agreement as are delegated to the Agent by the terms thereof,
      together with such powers and discretion as are reasonably incidental thereto;
      (vi) agrees that it will perform in accordance with their terms all of the
      obligations that by the terms of the Credit Agreement are required to be
      performed by it as a Lender; and (vii) attaches any U.S. Internal Revenue
      Service forms required under Section 2.14 of the Credit
      Agreement.

     

    4.           Following
      the execution of this Assignment and Acceptance, it will be delivered to the
      Agent for acceptance and recording by the Agent pursuant to Section 9.07 of
      the
      Credit Agreement.  The effective date for this Assignment and
      Acceptance (the "Effective Date") shall be the date of acceptance hereof
      by the Agent, unless otherwise specified on Schedule 1 hereto.

     

    5.           Upon
      such acceptance and recording by the Agent, from and after the Effective Date,
      (i) the Assignee shall be a party to the Credit Agreement and, to the
      extent provided in this Assignment and Acceptance, have the rights and
      obligations of a Lender thereunder and (ii) the Assignor shall, to the
      extent provided in this Assignment and Acceptance, relinquish its rights and
      be
      released from its obligations under the Credit Agreement.

     

    6.           Upon
      such acceptance and recording by the Agent, from and after the Effective Date,
      the Agent shall make all payments under the Credit Agreement and the Revolving
      Credit Notes in respect of the interest assigned hereby (including, without
      limitation, all payments of principal, interest and facility fees with respect
      thereto) to the Assignee.  The Assignor and Assignee shall make all
      appropriate adjustments in payments under the Credit Agreement and the Revolving
      Credit Notes for periods prior to the Effective Date directly between
      themselves.

     

    7.           This
      Assignment and Acceptance shall be governed by, and construed in accordance
      with, the laws of the State of New York.

     

    8.           This
      Assignment and Acceptance may be executed in any number of counterparts and
      by
      different parties hereto in separate counterparts, each of which when so
      executed shall be deemed to be an original and all of which taken together
      shall
      constitute one and the same agreement.  Delivery of an executed
      counterpart of Schedule 1 to this Assignment and Acceptance by telecopier shall
      be effective as delivery of a manually executed counterpart of this Assignment
      and Acceptance.

     

    IN
      WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1 to
      this Assignment and Acceptance to be executed by their officers thereunto duly
      authorized as of the date specified thereon.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Schedule
      1

    to

    Assignment
      and Acceptance

    

    

    
      	
              Percentage
                interest assigned:

            	
              __________%

            	 	 
	 	 	 	 
	
              Assignee’s
                Commitment:

            	
              $_______________

            	 	 
	 	 	 	 
	
              Aggregate
                outstanding principal amount of Revolving Credit Advances
                assigned:

            	
              $_______________

            	 	 
	 	 	 	 
	
              Principal
                amount of Revolving Credit Note payable to Assignee:

            	
              $_______________

            	 	 
	 	 	 	 
	
              Principal
                amount of Revolving Credit Note payable to Assignor:

            	
              $_______________

            	 	 
	 	 	 	 
	
              Effective
                Date*:

            	
              _______________

            	 	 	 	 
	 
	 	 	
              [NAME
                OF ASSIGNOR], as Assignor

            	 
	 	 	
               

              By
                _________________________________

            	 
	 	 	
              Title:

            	 
	 	 	 	 
	 	 	
              Dated:
                _____________________

            	 
	 	 	 	 
	 	 	
              [NAME
                OF ASSIGNEE], as Assignee

            	 
	 	 	 	 
	 	 	
              By
                _________________________________

            	 
	 	 	
              Title:

            	 
	 	 	 	 
	 	 	
              Dated:
                _____________________

            	 
	 	 	 	 
	 	 	
              Domestic
                Lending Office:

              [Address]

            	 
	 	 	 	 
	 	 	
              Eurodollar
                Lending Office:

              [Address]

            	 

    

    

    

      
        

      

    

    
      *    This
        date
        should be no earlier than five Business Days after the delivery of this
        Assignment and Acceptance to the Agent.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        2

      

    

    

    
      	
              Accepted
                and Approved this

              __________
                day of _______________

            
	 
	
              CITIBANK,
                N.A., as Agent

               

              By:
                ___________________________

            
	
              Title:

            
	 
	
              Approved
                this __________ day

              of
                _______________

            
	 
	
              THE
                HERSHEY COMPANY

               

              By:
                ___________________________

            
	
              Title:

            

    

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

     

    [Reserved]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E
      - FORM OF

    DESIGNATION
      LETTER

    [DATE]

     

    To
      Citibank, N.A.,

      as
      Agent for the Lenders

      party
      to the Credit Agreement

      referred
      to below

     

    Ladies
      and Gentlemen:

     

    Reference
      is made to the Credit Agreement dated as of August 24, 2007 (the "Credit
      Agreement") among The Hershey Company (the "Company"), the Lenders
      named therein, Citibank, N.A., as administrative agent (the "Agent") for
      said Lenders, Bank of America, N.A., as syndication agent, UBS Loan Finance
      LLC,
      as documentation agent, and Citigroup Global Markets Inc. and Banc America
      Securities LLC, as joint lead arrangers and joint book managers.  For
      convenience of reference, terms used herein and defined in the Credit Agreement
      shall have the respective meanings ascribed to such terms in the Credit
      Agreement.

     

    Please
      be
      advised that the Company hereby designates its undersigned Subsidiary,
      ____________ (the "Designated Subsidiary"), as a "Designated Subsidiary"
      under and for all purposes of the Credit Agreement.

     

    The
      Designated Subsidiary, in consideration of each Lender's agreement to extend
      credit to it under and on the terms and conditions set forth in the Credit
      Agreement, does hereby assume each of the obligations imposed upon a "Designated
      Subsidiary" and a "Borrower" under the Credit Agreement and agrees to be bound
      by the terms and conditions of the Credit Agreement.  In furtherance
      of the foregoing, the Designated Subsidiary hereby represents and warrants
      to
      each Lenders as follows:

     

    1.           The
      Designated Subsidiary is a corporation duly incorporated, validly existing
      and
      in good standing under the laws of __________________ and is duly qualified
      to
      transact business in all jurisdictions in which such qualification is
      required.

     

    2.           The
      execution, delivery and performance by the Designated Subsidiary of this
      Designation Letter, the Credit Agreement and the Notes of such Designated
      Subsidiary, and the consummation of the transactions contemplated thereby,
      are
      within the Designated Subsidiary's corporate powers, have been duly authorized
      by all necessary corporate action, and do not and will not contravene (i) the
      charter or by-laws of the Designated Subsidiary or (ii) law or any contractual
      restriction binding on or affecting the Designated Subsidiary.

     

    3.           This
      Designation Agreement and each of the Notes of the Designated Subsidiary, when
      delivered, will have been duly executed and delivered, and this Designation
      Letter, the Credit Agreement and each of the Notes of the Designated Subsidiary,
      when delivered, will constitute the legal, valid and binding obligations of
      the
      Designated Subsidiary enforceable against the Designated Subsidiary in
      accordance with

    
      
        
        

      

      
        
        

        
          

        

      

      
        2

      

    

     

    their
      respective terms except to the extent that such enforcement may be limited
      by
      applicable bankruptcy, insolvency and other similar laws affecting creditors'
      rights generally.

     

    4.           There
      is no pending or threatened action, suit, investigation, litigation or
      proceeding including, without limitation, any Environmental Action, affecting
      the Designated Subsidiary or any of its Subsidiaries before any court,
      governmental agency or arbitrator that (i) could be reasonably likely to have
      a
      Material Adverse Effect, or (ii) purports to effect the legality, validity
      or
      enforceability of this Designation Letter, the Credit Agreement, any Note of
      the
      Designated Subsidiary or the consummation of the transactions contemplated
      thereby.

     

    5.           No
      authorization or approval or other action by, and no notice to or filing with,
      any governmental authority or administrative or regulatory body or any other
      third party are required in connection with the execution, delivery or
      performance by the Designated Subsidiary of this Designation Letter, the Credit
      Agreement or the Notes of the Designated Subsidiary except for such
      authorizations, consents, approvals, licenses, filings or registrations as
      have
      heretofore been made, obtained or effected and are in full force and
      effect.

     

    6.           The
      Designated Subsidiary is not, and immediately after the application by
      the
      Designated Subsidiary of the proceeds of each Advance will not be, an
      "investment company", or an "affiliated person" of, or "promotor" or "principal
      underwriter" for, an "investment company", as such terms are defined in the
      Investment Company Act of 1940, as amended.

     

    
      	
              
              

            	
              Very
                truly yours,

            
	 	 
	 	
              THE
                HERSHEY COMPANY

               

              By
                ________________________

            
	 	
              Title:

            

    

    
      	 	 
	 	
              [THE
                DESIGNATED SUBSIDIARY]

               

              By
                ________________________

            
	 	
              Title:

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      F
      - FORM OF

    ACCEPTANCE
      BY COMPANY AS PROCESS AGENT

     

    [Date]

     

    To
      each
      of the Lenders party

    to
      the
      Credit Agreement (as defined

    below)
      and to Citibank, N.A.,

    as
      Agent
      for said Lenders

     

    [Name
      of Designated Subsidiary]

     

    Ladies
      and Gentlemen:

     

    Reference
      is made to (i) that certain Credit Agreement, dated as of August 24, 2007,
      among
      The Hershey Company (the "Company"), the Lenders named therein, Citibank,
      N.A., as administrative agent (the "Agent") for said Lenders, Bank of
      America, N.A., as syndication agent, UBS Loan Finance LLC, as documentation
      agent, and Citigroup Global Markets Inc. and Banc America Securities LLC, as
      joint lead arrangers and joint book managers (as hereafter amended, supplemented
      or otherwise modified from time to time, the "Credit Agreement"; the
      terms defined therein being used herein as therein defined), and (ii) to
      the Designation Letter, dated _________, pursuant to which __________ has become
      a Borrower under the Credit Agreement.

     

    Pursuant
      to Section 9.12(a) of the Credit Agreement, __________ has appointed the Company
      (with an office on the date hereof at Corporate Headquarters, 100 Crystal A
      Drive, Hershey, Pennsylvania 17033-0810, United States) as Process Agent to
      receive on behalf of ______________ service of copies of the summons and
      complaint and any other process which may be served in any action or proceeding
      in any New York State or Federal court of the United States of America sitting
      in New York City arising out of or relating to the Credit
      Agreement.

     

    The
      Company hereby accepts such appointment as Process Agent and agrees with each
      of
      you that (i) the undersigned will not terminate or abandon the undersigned
      agency as such Process Agent without at least six months' prior notice to the
      Agent (and hereby acknowledges that the undersigned has been retained for its
      services as Process Agent through __________), (ii) the undersigned will
      maintain an office in the United States through such date and will give the
      Agent prompt notice of any change of address of the undersigned, (iii) the
      undersigned will perform its duties as Process Agent to receive on behalf of
      ______________ service of copies of the summons and complaint and any other
      process which may be served in any action or proceeding in any New York State
      or
      Federal court of the United States of America sitting in New York City arising
      out of or relating to the Credit Agreement and (iv) the undersigned will
      forward forthwith to ______________ at its address at ________________ or,
      if
      different, its then current address, copies of any summons, complaint and other
      process which the undersigned receives in connection with its appointment as
      Process Agent.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        2

      

    

    This
      acceptance and agreement shall be binding upon the undersigned and all
      successors of the undersigned.

     

    
      	 	
              Very
                truly yours,

            
	 	 
	 	
              THE
                HERSHEY COMPANY

               

              By
                ________________________

            
	 	
              Title:

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      G
      - FORM OF

    OPINION
      OF BURTON H. SNYDER, SENIOR VICE PRESIDENT,

     GENERAL
      COUNSEL AND SECRETARY

    OF
      THE
      COMPANY

     

    [Effective
      Date]

     

    To
      each
      of the Lenders party

      to
      the Credit Agreement referred

      to
      below and to Citibank, N.A., as

      Agent
      for such Lenders

     

    The
      Hershey Company

     

    Ladies
      and Gentlemen:

     

    This
      opinion is furnished to you pursuant to Section 3.01(g)(iv) of the Credit
      Agreement, dated as of August 24, 2007 (the "Credit Agreement"), among
      The Hershey Company (the "Company"), the Lenders party thereto, Citibank,
      N.A., as administrative agent (the "Agent") for said Lenders, Bank of
      America, N.A., as syndication agent, UBS Loan Finance LLC, as documentation
      agent, and Citigroup Global Markets Inc. and Banc America Securities LLC, as
      joint lead arrangers and joint book managers.  Terms defined in the
      Credit Agreement are used herein as therein defined.

     

    I
      am the
      Senior Vice President, General Counsel and Secretary of the Company, and I
      have
      acted as counsel for the Company in connection with the preparation, execution
      and delivery of the Credit Agreement.

     

    In
      that
      connection, I have examined:

     

     (1)           the
      Credit Agreement and the Revolving Credit Notes of the Company;

     

     (2)           the
      documents furnished by the Company pursuant to Article III of the Credit
      Agreement;

     

     (3)           the
      Amended and Restated Certificate of Incorporation of the Company and all
      amendments thereto (the "Charter"); and

     

     (4)           The
      by-laws of the Company and all amendments thereto (the
      "By-laws").

     

    I
      have
      also examined the originals, or copies certified to my satisfaction, of such
      other corporate records of the Company, certificates of public officials and
      of
      officers of the Company, and agreements, instruments and other documents, as
      I
      have deemed necessary as a basis for the opinions expressed below.  In
      making such examinations, I have assumed the

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        2

      

    

    genuineness
      of all signatures (other than those on behalf of the Company), the authenticity
      of all documents submitted to me as originals and the conformity to authentic
      original documents of all documents submitted to me as certified, conformed
      or
      photographic copies.  As to questions of fact material to such
      opinions, I have, when relevant facts were not independently established by
      me,
      relied upon certificates of the Company or its officers or of public officials
      and as to questions of fact and law, on opinions or statements by other lawyers
      reporting to me.  I have assumed the due execution and delivery,
      pursuant to due authorization, of the Credit Agreement by the Initial Lenders
      and the Agent.

     

    My
      opinions expressed below are limited to the law of the Commonwealth of
      Pennsylvania, and, where applicable, the General Corporation Law of the State
      of
      Delaware and the Federal law of the United States.

     

    Based
      upon the foregoing and upon such investigation as I have deemed necessary,
      I am
      of the following opinion:

     

    1.           The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Delaware.

     

    2.           The
      execution, delivery and performance by the Company of the Credit Agreement
      and
      the Notes, and the consummation of the transactions contemplated thereby, are
      within the Company's corporate powers, have been duly authorized by all
      necessary corporate action, and do not contravene (i) the Charter or the
      By-laws or (ii) any law, rule or regulation applicable to the Company
      (including, without limitation, Regulation X of the Board of Governors of
      the Federal Reserve System) or (iii) any contractual or legal restriction
      binding on or affecting the Company or, to the best of my knowledge, contained
      in any other similar document, except where such contravention would not be
      reasonably likely to have a Material Adverse Effect.  The Credit
      Agreement and the Revolving Credit Notes of the Company have been duly executed
      and delivered on behalf of the Company.

     

    3.           No
      authorization, approval or other action by, and no notice to or filing with,
      any
      governmental authority or regulatory body or any other third party is required
      for the due execution, delivery and performance by the Company of the Credit
      Agreement and the Notes, or for the consummation of the transactions
      contemplated thereby, except for the authorizations, approvals, actions, notices
      and filings (i) listed on Schedule 4.01(c) to the Credit Agreement, all of
      which have been duly obtained, taken, given or made and are in full force and
      effect and (ii) where the Company's failure to receive, take or make such
      authorization, approval, action, notice or filing would not have a Material
      Adverse Effect.

     

    4.           There
      (i) are no pending or, to the best of my knowledge, threatened actions,
      investigations, litigations or proceedings against the Company or any of its
      Subsidiaries before any court, governmental agency or arbitrator that (a) would
      be reasonably likely to have a Material Adverse Effect (other than the Disclosed
      Litigation) or (b) purport to affect the legality, validity, binding effect
      or
      enforceability of the Credit Agreement or any of the Notes or the consummation
      of the transactions contemplated

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        3

      

    

    thereby,
      and (ii) there has been no adverse change in the status, or financial effect
      on
      the Company and its Subsidiaries taken as a whole, of the Disclosed Litigation
      from that described on Schedule 3.01(b) thereto.

     

    This
      opinion letter may be relied upon by you only in connection with the transaction
      being consummated pursuant to the Credit Agreement and may not be used or relied
      upon by any other person for any other purpose.

     

    Very
      truly yours,

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      H
      - FORM OF OPINION OF COUNSEL

    TO
      A
      DESIGNATED SUBSIDIARY

     

    [Date]

     

    To
      each
      of the Lenders party

    to
      the
      Credit Agreement

    referred
      to below,

    and
      to
      Citibank, N.A., as Agent

    for
      said
      Lenders

     

    Ladies
      and Gentlemen:

     

    In
      my
      capacity as counsel to _____________________ ("Designated Subsidiary"),
      I have reviewed that certain Credit Agreement, dated as of August 24, 2007
      (the
      "Credit Agreement"), among The Hershey Company (the "Company"),
      the Lenders party thereto, Citibank, N.A., as administrative agent (the
      "Agent") for said Lenders, Bank of America, N.A., as syndication agent,
      UBS Loan Finance LLC, as documentation agent, and Citigroup Global Markets
      Inc.
      and Banc America Securities LLC, as joint lead arrangers and joint book
      managers.  Terms defined in the Credit Agreement are used herein as
      therein defined.  In connection therewith, I have also examined the
      following documents:

     

    (i)           The
      Designation Letter (as defined in the Credit Agreement) executed by the
      Designated Subsidiary.

     

    [such
      other documents as counsel may wish to refer to]

     

    I
      have
      also reviewed such matters of law and examined the original, certified,
      conformed or photographic copies of such other documents, records, agreements
      and certificates as I have considered relevant hereto.  As to
      questions of fact material to such opinions, we have, when relevant facts were
      not independently established by us, relied upon certificates of the Designated
      Subsidiary or of its officers or of public officials and as to questions of
      fact
      and law, on opinions or statements by other lawyers reporting to
      me.  I have assumed (i) the due execution and delivery, pursuant
      to due authorization, of each of the documents referred to above by all parties
      thereto other than the Designated Subsidiary, (ii) the authenticity of all
      such documents submitted to us as originals and (iii) the conformity to
      originals of all such documents submitted to me as certified, conformed or
      photographic copies.

     

    My
      opinions expressed below are limited to ________________ and the State of New
      York.

     

    Based
      upon the foregoing, and upon such investigation as I have deemed necessary,
      I am
      of the following opinion:

    
      
        
        

      

      
        
        

        
          

        

      

      
        2

      

    

     

     

    1.           The
      Designated Subsidiary (a) is a corporation duly incorporated, validly existing
      and in good standing under the laws of _________________________, (b) is
      duly qualified in each other jurisdiction in which it owns or leases property
      or
      in which the conduct of its business requires it to so qualify or be licensed
      and (c) has all requisite corporate power and authority to own or lease and
      operate its properties and to carry on its business as now conducted and as
      proposed to be conducted.

    

    2.           The
      execution, delivery and performance by the Designated Subsidiary of its
      Designation Letter, the Credit Agreement and its Revolving Credit Notes, and
      the
      consummation of the transactions contemplated thereby, are within the Designated
      Subsidiary's corporate powers, have been duly authorized by all necessary
      corporate action, and do not contravene (i) any provision of the charter or
      by-laws or other constituent documents of the Designated Subsidiary,
      (ii) any law, rule or regulation applicable to the Designated Subsidiary or
      (iii) any contractual or legal obligation or restriction binding on or
      affecting the Designated Subsidiary, except where such contravention would
      not
      be reasonably likely to have a Material Adverse Effect.  The
      Designation Letter and each Revolving Credit Note of the Designated Subsidiary
      has been duly executed and delivered on behalf of the Designated
      Subsidiary.

    

    3.           The
      Designation Letter of the Designated Subsidiary, the Credit Agreement and the
      Revolving Credit Notes of the Designated Subsidiary are, and each other Note
      of
      the Designated Subsidiary when executed and delivered under the Credit Agreement
      will be, legal, valid and binding obligations of the Designated Subsidiary
      enforceable in accordance with their respective terms, except as the
      enforceability thereof may be limited by bankruptcy, insolvency, reorganization
      or moratorium or other similar laws relating to the enforcement of creditors'
      rights generally or by the application of general principles of equity
      (regardless of whether such enforceability is considered in a proceeding in
      equity or at law), and except that I express no opinion as to (i) the
      subject matter jurisdiction of the District Courts of the United States of
      America to adjudicate any controversy relating to the Credit Agreement, the
      Designation Letter of the Designated Subsidiary or the Notes of the Designated
      Subsidiary or (ii) the effect of the law of any jurisdiction (other than the
      State of New York) wherein any Lender or Applicable Lending Office may be
      located or wherein enforcement of the Credit Agreement, the Designation Letter
      of the Designated Subsidiary or the Notes of the Designated Subsidiary may
      be
      sought which limits rates of interest which may be charged or collected by
      such
      Lender.

    

    4.           There
      is no pending, or to the best of my knowledge, threatened action, investigation,
      litigation or proceeding at law or in equity against the Designated Subsidiary
      before any court, governmental agency or arbitrator that would be reasonably
      likely to have a Material Adverse Effect or that purports to affect the
      legality, validity, binding effect or enforceability of the Designation Letter
      of the Designated Subsidiary, the Credit Agreement or any Revolving Credit
      Note
      of the Designated Subsidiary, or the consummation of the transactions
      contemplated thereby.

    
      
        
        

      

      
        
        

        
          

        

      

      
        3

      

    

    5.           No
      authorization, approval or other action by, and no notice to or filing with,
      any
      governmental authority or regulatory body or any other third party is required
      for the due execution, delivery and performance by the Designated Subsidiary
      of
      its Designation Letter, the Credit Agreement or the Notes of the Designated
      Subsidiary except for such authorizations, consents, approvals, actions, notices
      or filings as have heretofore been made, obtained or affected and are in full
      force and effect.

    

    This
      opinion letter may be relied upon by you only in connection with the transaction
      being consummated pursuant to the Credit Agreement and may not be used or relied
      upon by any other person for any other purpose.

    

     

    Very
      truly yours,

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