Document:

ex10-1.htm

    Exhibit
      10.1

    

    

    ═══════════════════════════════════════

     

    

    SECOND
      AMENDED AND RESTATED REVOLVING CREDIT AND

    LETTER
      OF
      CREDIT AGREEMENT

    

    Dated
      as
      of June 19, 2007

    

    Among

    

    CIGNA
      CORPORATION

    
 

    THE
      BANKS
      NAMED HEREIN

    

    and

    

    CITIBANK,
      N.A.,

    as
      Administrative Agent

    

    ═══════════════════════════════════════

    

    CITIGROUP
      GLOBAL MARKETS INC.,

    BANC
      OF
      AMERICA SECURITIES LLC, and

    J.P.
      MORGAN SECURITIES INC.,

    as
      Joint Lead Arrangers and Joint Book Managers

    

    

    BANK
      OF
      AMERICA, N.A.,

    as
      Syndication Agent

    

    THE
      BANK
      OF TOKYO-MITSUBISHI UFJ, LTD.,

    NEW
      YORK
      BRANCH and

    DEUTSCHE
      BANK AG NEW YORK BRANCH,

     as
      Co-Documentation Agents

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF
      CONTENTS

    

     

    

      
        	 	Page
	 	 
	
                ARTICLE
                  I DEFINITIONS AND ACCOUNTING TERMS

              	
                1

              
	
                SECTION
                  1.01.

              	
                Certain
                  Defined Terms

              	
                1

              
	
                SECTION
                  1.02.

              	
                 Computation
                  of Time Periods

              	
                11

              
	
                SECTION
                  1.03.

              	
                Accounting
                  Terms; Terms Generally

              	
                11

              
	 	 	 
	 	 	 
	
                ARTICLE
                  II LETTERS OF CREDIT

              	
                12

              
	
                SECTION
                  2.01.

              	
                Letters
                  of Credit

              	
                12

              
	
                SECTION
                  2.02.

              	
                Reimbursement
                  for LC Disbursements, Cover, Etc.

              	
                14

              
	
                SECTION
                  2.03.

              	
                LC
                  Disbursement Procedures

              	
                16

              
	
                SECTION
                  2.04.

              	
                Interest

              	
                16

              
	
                SECTION
                  2.05.

              	
                Provision
                  of Cover

              	
                16

              
	
                SECTION
                  2.06.

              	
                Replacement
                  of an Issuing Bank

              	
                17

              
	 	 	 
	 	 	 
	
                ARTICLE
                  III ADVANCES

              	
                18

              
	
                SECTION
                  3.01.

              	
                The
                  Advances

              	
                18

              
	
                SECTION
                  3.02.

              	
                Making
                  the Advances

              	
                18

              
	
                SECTION
                  3.03.

              	
                Notes

              	
                19

              
	
                SECTION
                  3.04.

              	
                Termination,
                  Reduction, Extension or Increase of the Revolving Credit
                  Commitments

              	
                19

              
	
                SECTION
                  3.05.

              	
                Repayment
                  of Advances and Evidence of Indebtedness

              	
                22

              
	
                SECTION
                  3.06.

              	
                 Interest
                  on Advances

              	
                23

              
	
                SECTION
                  3.07.

              	
                 Interest
                  Rate Determination

              	
                23

              
	
                SECTION
                  3.08.

              	
                Optional
                  Conversion of Advances

              	
                24

              
	
                SECTION
                  3.09.

              	
                Optional
                  Prepayments of Advances

              	
                25

              
	
                SECTION
                  3.10.

              	
                Use
                  of Proceeds

              	
                25

              
	 	 	 
	 	 	 
	
                ARTICLE
                  IV FEES; CERTAIN COMMON PROVISIONS

              	
                25

              
	
                SECTION
                  4.01.

              	
                Fees

              	
                25

              
	
                SECTION
                  4.02.

              	
                Increased
                  Costs

              	
                26

              
	
                SECTION
                  4.03.

              	
                Illegality

              	
                26

              
	
                SECTION
                  4.04.

              	
                Payments
                  and Computations

              	
                27

              
	
                SECTION
                  4.05.

              	
                Taxes

              	
                28

              
	 	 	 
	 	 	 
	
                ARTICLE
                  V EFFECTIVE DATE; CONDITIONS PRECEDENT

              	
                29

              
	
                SECTION
                  5.01.

              	
                Effective
                  Date

              	
                29

              
	
                SECTION
                  5.02.

              	
                Conditions
                  Precedent to Each Extension of Credit and Each Amendment of each
                  Letter of
                  Credit

              	
                30

              
	 	 	 
	 	 	 
	
                ARTICLE
                  VI REPRESENTATIONS AND WARRANTIES

              	
                31

              
	
                SECTION
                  6.01.

              	
                Representations
                  and Warranties of the Company

              	
                31

              
	 	 	 
	 	 	 
	
                ARTICLE
                  VII COVENANTS OF THE COMPANY

              	
                32

              
	
                SECTION
                  7.01.

              	
                Affirmative
                  Covenants

              	
                32

              
	
                SECTION
                  7.02.

              	
                Negative
                  Covenants

              	
                34

              
	 	 	 
	 	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                ARTICLE
                  VIII EVENTS OF DEFAULT

              	
                35

              
	
                SECTION
                  8.01.

              	
                Events
                  of Default

              	
                35

              
	 	 	 
	 	 	 
	
                ARTICLE
                  IX THE ADMINISTRATIVE AGENT

              	
                37

              
	
                SECTION
                  9.01.

              	
                Authorization
                  and Action

              	
                37

              
	
                SECTION
                  9.02.

              	
                Administrative
                  Agent’s Reliance, Etc.

              	
                37

              
	
                SECTION
                  9.03.

              	
                Citibank
                  and Affiliates

              	
                37

              
	
                SECTION
                  9.04.

              	
                Bank
                  Credit Decision

              	
                37

              
	
                SECTION
                  9.05.

              	
                Indemnification

              	
                37

              
	
                SECTION
                  9.06.

              	
                Successor
                  Administrative Agent

              	
                38

              
	
                SECTION
                  9.07.

              	
                Joint
                  Lead Arrangers

              	
                38

              
	
                SECTION
                  9.08.

              	
                Trust
                  Indenture Act

              	
                38

              
	 	 	 
	 	 	 
	
                ARTICLE
                  X MISCELLANEOUS

              	
                38

              
	
                SECTION
                  10.01.

              	
                Amendments,
                  Etc.

              	
                38

              
	
                SECTION
                  10.02.

              	
                Notices,
                  Etc.

              	
                39

              
	
                SECTION
                  10.03.

              	
                No
                  Waiver; Remedies

              	
                41

              
	
                SECTION
                  10.04.

              	
                Costs,
                  Expenses and Indemnification

              	
                41

              
	
                SECTION
                  10.05.

              	
                Binding
                  Effect

              	
                42

              
	
                SECTION
                  10.06.

              	
                Assignments
                  and Participations

              	
                42

              
	
                SECTION
                  10.07.

              	
                Governing
                  Law; Submission to Jurisdiction

              	
                45

              
	
                SECTION
                  10.08.

              	
                Severability

              	
                45

              
	
                SECTION
                  10.09.

              	
                Execution
                  in Counterparts

              	
                45

              
	
                SECTION
                  10.10.

              	
                Survival

              	
                45

              
	
                SECTION
                  10.11.

              	
                Sharing
                  of Set-Offs, Etc.

              	
                45

              
	
                SECTION
                  10.12.

              	
                Waiver
                  of Jury Trial

              	
                46

              
	
                SECTION
                  10.13.

              	
                Confidentiality

              	
                46

              
	
                SECTION
                  10.14.

              	
                USA
                  PATRIOT Act

              	
                46

              

      

      
 

    

    
      	
              SCHEDULE
                1

            	
              -

            	
              COMMITMENTS

            
	
              SCHEDULE
                2

            	
              -

            	
              PRICING
                SCHEDULE

            
	
              SCHEDULE
                3

            	
              -

            	
              EXISTING
                LETTERS OF CREDIT

            
	 	 	 
	
              EXHIBITS

            	 	 
	 	 	 
	
              EXHIBIT
                A-1

            	
              -

            	
              Form
                of Arbor Letter of Credit

            
	
              EXHIBIT
                A-2

            	
              -

            	
              Form
                of Notice of Issuance

            
	
              EXHIBIT
                A-3

            	
              -

            	
              Form
                of Notice of Increase

            
	
              EXHIBIT
                A-4

            	
              -

            	
              Form
                of Notice of Reduction

            
	
              EXHIBIT
                B

            	
              -

            	
              Form
                of Notice of Borrowing

            
	
              EXHIBIT
                C

            	
              -

            	
              Form
                of Note

            
	
              EXHIBIT
                D

            	
              -

            	
              Form
                of Assignment and Assumption

            
	
              EXHIBIT
                E

            	
              -

            	
              Form
                of Opinion of Counsel of Company

            
	
              EXHIBIT
                F

            	
              -

            	
              Form
                of Opinion of Special New York Counsel to

            
	 	 	
              Administrative
                Agent

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SECOND
      AMENDED AND RESTATED REVOLVING
      CREDIT AND LETTER OF CREDIT AGREEMENT dated as of June 19, 2007 among CIGNA
      CORPORATION, a Delaware corporation (together with its successors and assigns,
      the “Company”), the financial institutions (together with their
      respective successors and assigns and each financial institution that becomes
      a
      lender pursuant to Sections 3.04(e) and 3.04(f), each a “Bank” and,
      collectively, the “Banks”) listed under the heading “Banks” on the
      signature pages hereof, and CITIBANK, N.A. (“Citibank”), as
      administrative agent (in such capacity, together with its successors in such
      capacity, the “Administrative Agent”) as herein provided.

    

    The
      Company, certain banks and
      Citibank, N.A., as Administrative Agent are parties to an Amended and Restated
      Revolving Credit and Letter of Credit Agreement dated as of May 11, 2006 (the
      “Existing Agreement”).  The Company has requested that the
      Banks amend the Existing Agreement in certain respects and, as so amended,
      to
      restate the Existing Agreement, and the parties are prepared to do so on the
      terms and conditions hereof.  Accordingly, effective on the Effective
      Date as hereinafter defined, the Existing Agreement is hereby amended and
      restated to read in its entirety 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):

     

    “Additional
      Commitment Bank” has
      the meaning set forth in Section 3.04(e).

     

    “Administrative
      Agent” has the meaning set forth in the introduction hereto.

     

    “Administrative
      Agent’s Account” means the account of the Administrative Agent maintained by
      the Administrative Agent at Citibank at Two Penns Way, Suite 200, New Castle,
      Delaware 19720, ABA#021000089, Account No. 3685 2248, Account
      Name: NAIB Agency Medium Term Finance/Reference:  CIGNA,
      Attention:  Dawayne Sims, or such other account as may from time to
      time be designated by the Administrative Agent to the Company and the Banks
      in
      writing.

     

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

     

    “Advance”
      means an advance by a Bank to the Company as part of a Borrowing and refers
      to a
      Base Rate Advance or a Eurodollar Rate Advance (each of which shall be a
“Type” of 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.

     

    “Applicable
      Commitment Fee Rate” means, for any Rating Level Period, the rate per annum
      set forth in Schedule 2 opposite the reference to such Rating Level Period
      under the heading “Applicable Commitment Fee Rate”.  Each change in
      the Applicable Commitment Fee Rate resulting from a Rating Level Change shall
      be
      effective on the date of such Rating Level Change.

    

    “Applicable
      Issuing Office” means, with respect to any Bank, such office of such Bank as
      such Bank may from time to time specify to the Company and the Administrative
      Agent as the office at which it participates in Letters of Credit.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 2
          -

      

       

    

    “Applicable
      Lending Office” means, with respect to any Bank, such Bank’s Domestic
      Lending Office in the case of any Base Rate Advance and such Bank’s Eurodollar
      Lending Office in the case of any Eurodollar Rate Advance.

    

    “Applicable
      Margin” means, with respect to any Eurodollar Rate Advance, for any Rating
      Level Period, the rate per annum set forth in Schedule 2 opposite the
      reference to such Rating Level Period under the heading “Applicable
      Margin”.  Each change in the Applicable Margin resulting from a Rating
      Level Change shall be effective on the date of such Rating Level
      Change.

    

    “Applicable
      Percentage” means, with respect to any Bank, at any time, the ratio,
      expressed as a percentage, of (i) the aggregate amount of such Bank’s Commitment
      at such time to (ii) the Total Commitments at such time.

    

    “Arbor”
      means Arbor Reinsurance Company, Limited, an indirect subsidiary of the Company
      organized under the laws of Bermuda.

     

    “Arbor
      Letter of Credit” means a Letter of Credit (which shall be a Multi-Bank
      Letter of Credit hereunder) issued hereunder in favor of Connecticut General
      for
      the account of Arbor, for the purpose of enabling Connecticut General to obtain
      statutory reserve credit for cessions to non-admitted reinsurers, in
      substantially the form of Exhibit A-1.

     

    “Assignment
      and Assumption” means an assignment and assumption entered into by a Bank
      and an Eligible Bank (with the consent of any party whose consent is required
      by
      Section 10.06), and accepted by the Administrative Agent, in the form of
      Exhibit D or any other form approved by the Administrative
      Agent.

     

    “Bank”
      and “Banks” have the meanings set forth in the introduction hereto (and
      shall include each Issuing Bank unless the context otherwise
      requires).

     

    “Base
      Rate” means, for any day, 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:

     

    (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)  0.50%
      per annum above the Federal Funds Rate for such day.

     

    “Base
      Rate Advance” means an Advance that bears interest as provided in
      Section 3.06(a).

     

    “Beneficiary”
      means the beneficiary of a Letter of Credit.

     

    “Borrowing”
      means a borrowing consisting of simultaneous Advances of the same Type made
      by
      each of the Banks pursuant to Section 3.01.

     

    “Business
      Day” means a day of the year on which commercial 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, on which dealings in foreign currencies
      and exchange between banks may be carried out in the London interbank
      market.

     

    “Change
      in Control” means any of the following events:

     

    (a)  the
      Company is merged, consolidated or reorganized into or with another corporation
      or other Person, and as a result of such merger, consolidation or reorganization
      less than a majority of the combined voting power of the then ­outstanding
      securities of the corporation or 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 3
          -

      

       

    

    other
      Person that is the survivor of such merger, consolidation or reorganization
      immediately after such transaction is held in the aggregate by the holders
      of
      Voting Stock immediately prior to such transaction; or

     

    (b)  the
      Company sells all or substantially all of its assets to any other corporation
      or
      other Person, and less than a majority of the combined voting power of the
      then
      outstanding securities of such corporation or other Person immediately after
      such transaction is held in the aggregate by the holders of Voting Stock
      immediately prior to such sale; or

     

    (c)  any
      “person” or “group” (as such terms are used for purposes of Sections 13(d) and
      14(d) of the Exchange Act, whether or not applicable, except that for purposes
      of this paragraph (c) such person or group shall be deemed to have “beneficial
      ownership” of all shares that such person or group has the right to acquire,
      whether such right is exercisable immediately or only after the passage of
      time)
      is or becomes the “beneficial owner” (as such term is used in Rule 13d-3
      promulgated pursuant to the Exchange Act), directly or indirectly, of more
      than
      30% of the aggregate voting power of all Voting Stock; or

     

    (d)  during
      any period of 25 consecutive calendar months, a majority of the Board of
      Directors of the Company shall no longer be composed of individuals (i) who
      were
      members of said Board on the first day of such period, (ii) whose election
      or nomination to said Board was approved by individuals referred to in
      clause (i) above constituting at the time of such election or nomination at
      least a majority of said Board or (iii) whose election or nomination to
      said Board was approved by individuals referred to in clauses (i) and (ii)
      above constituting at the time of such election or nomination at least a
      majority of said Board.

     

    “Citibank”
      means Citibank, N.A., a national banking association, and its successors and
      assigns.

     

    “Collateral
      Account” has the meaning set forth in Section 2.05(a).

     

    “Commitment”
      means, at any time, for any Bank, the amount set forth opposite the name of
      such
      Bank on Schedule 1 (or (i) if such Bank has entered into an Assignment and
      Assumption, the amount set forth for such Bank in the register maintained by
      the
      Administrative Agent pursuant to Section 10.06(b), or (ii) if such Bank has
      become a Bank pursuant to Sections 3.04(e) or 3.04(f), the amount set forth
      in
      the instrument by which such Bank became a party hereto), subject to the
      provisions of Sections 3.04(b) and 3.04(f) relating to reductions and
      increases of the Commitments.

     

    “Company”
      has the meaning set forth in the introduction hereto.

     

    “Confidential
      Information” means information that the Company furnishes to the
      Administrative Agent or any Bank in a writing designated as confidential, but
      does not include any such information that is or becomes generally available
      to
      the public or that is or becomes rightfully available to the Administrative
      Agent or such Bank from a source other than the Company.

     

    “Confirming
      Bank” means, with respect to any Letter of Credit and any Bank, any other
      bank that has confirmed, by a document acceptable to the Beneficiary, the
      obligations of such Bank under such Letter of Credit.

     

    “Connecticut
      General” means Connecticut General Life Insurance Company, a Connecticut
      life insurance company.

     

    “Consolidated
      Subsidiary” means, at any time, any Subsidiary or other entity the accounts
      of which would, in accordance with generally accepted accounting principles,
      be
      consolidated with those of the Company in its consolidated financial statements
      if such statements were prepared as of such date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 4
          -

      

       

    

    “Continue”
      and “Continuation” refers to the continuation of Eurodollar Rate Advances
      from one Interest Period to the next as Eurodollar Rate Advances.

     

    “Continuing
      Banks” has the meaning set forth in Section 3.04(e).

     

    “Convert”,
      “Conversion” and “Converted” each refers to a conversion of
      Advances of one Type into Advances of the other Type pursuant to Section 3.07
      or
      3.08.

     

    “Cover”
      has the meaning set forth in Section 2.05(b).

     

    “Debt”
      of any Person means (a) indebtedness of such Person for borrowed money,
      (b) obligations of such Person evidenced by bonds, debentures, notes or
      other similar instruments, (c) obligations of such Person to pay the
      deferred purchase price of property or services, (d) obligations of such
      Person as lessee under leases which shall have been or should be, in accordance
      with generally accepted accounting principles, recorded as capital leases,
      (e) Debt of others secured by a Lien on the property of such Person,
      whether or not the respective Debt so secured has been assumed by such Person
      (but excluding, in the case of this clause (e), involuntary Liens on the
      property of such Person that are being contested in good faith and by
      appropriate proceedings and for which adequate reserves with respect thereto
      are
      maintained on the books of such Person), and (f) obligations of such Person
      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 others
      of
      the kinds referred to in clauses (a) through (e) above (but excluding, in
      the case of this clause (f), involuntary obligations of such Person that
      are being contested in good faith and by appropriate proceedings and for which
      adequate reserves with respect thereto are maintained on the books of such
      Person in accordance with generally accepted accounting principles);
provided that the term “Debt” shall exclude Non-Recourse
      Debt.

     

    “Declining
      Bank” has the meaning set forth in Section 5.01(g).

     

    “Default”
      means an event that, with notice or lapse of time or both, would become an
      Event
      of Default.

     

    “Disclosed
      Litigation” means the legal actions or proceedings disclosed in the report
      of the Company on form 10-K, 10-Q or 8-K most recently filed with the Securities
      and Exchange Commission prior to the date hereof.

     

    “Dollars”
      and the sign “$” mean lawful money in the United States of
      America.

     

    “Domestic
      Lending Office” means, with respect to any Bank, the office of such Bank
      specified as its “Domestic Lending Office” in its Administrative Questionnaire,
      or such other office of such Bank as such Bank may from time to time specify
      to
      the Company and the Administrative Agent.

     

    “Effective
      Date” has the meaning set forth in Section 5.01.

     

    “Eligible
      Bank” means a financial institution that meets the requirements of
      Connecticut General Statutes Section 38a-87(a), as from time to time
      amended to be a “qualified United States financial institution”, including the
      requirement that such financial institution be an NAIC Approved Bank (it being
      understood that neither the Company nor any Affiliate thereof may be an Eligible
      Bank).

     

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

     

    “Eurodollar
      Lending Office” means, with respect to any Bank, the office of such Bank
      specified as its “Eurodollar Lending Office” in its Administrative Questionnaire
      (or, if no such office is 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 5
          -

      

       

    

    specified,
      its Domestic Lending Office), or such other office of such Bank as such Bank
      may
      from time to time specify to the Company and the Administrative
      Agent.

     

    “Eurodollar
      Rate” means, for any Interest Period for each Eurodollar Rate Ad­vance
      comprising part of the same Borrowing, an interest rate per annum ap­pearing
      on Reuters Page LIBOR01 (or on any successor or substitute page or service
      providing rate quotations comparable to those currently provided on such page,
      as determined by the Administrative Agent from time to time for purposes of
      providing quotations of interest rates applicable to Dollar deposits in the
      London interbank market) as of approximately 11:00 a.m. (London time) on
      the date two Business Days before the first day of such Interest Period as
      the
      rate for Dollar deposits having a term comparable to such Interest Period,
      or in
      the event such offered rate is not available from Reuters Page LIBOR01, the
      rate
      determined by the Administrative Agent to be the average (rounded to the nearer
      whole multiple of 1/16 of 1% per annum, if such average is not such a multiple)
      of the rates per annum at which deposits in 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 approximately 11:00 a.m. (London time) on the
      date two Business Days before the first day of such Interest Period in an amount
      substantially equal to such Reference Bank’s Ad­vance comprising part of
      such Borrowing to be outstanding during such Inter­est Period and for a
      period comparable to such Interest Period.

     

    “Eurodollar
      Rate Advance” means an Advance that bears interest as provided in Section
      3.06(b).

     

    “Event
      of Default” has the meaning specified in Section 8.01.

     

    “Exchange
      Act” means the Securities Exchange Act of 1934, as amended.

     

    “Existing
      Agreement” has the meaning set forth in the introduction
      hereto.

     

    “Existing
      Letter of Credit” means each letter of credit described on Schedule
      3.

     

    “Existing
      Termination Date” has the meaning set forth in Section 3.04(e).

     

    “Extension
      Date” has the meaning set forth in Section 3.04(e).

     

    “Extension
      Request” has the meaning set forth in Section 3.04(e).

     

    “Federal
      Funds Rate” means, for any day, the rate per annum (rounded upward, if
      necessary, to the nearest 1/100th of 1%) equal to the weighted average of the
      rates on overnight Federal funds transactions with members of the Federal
      Reserve System arranged by Federal funds brokers on such day, as published
      by
      the Federal Reserve Bank of New York on the Business Day next succeeding such
      day, provided that (i) if such day is not a Business Day, the
      Federal Funds Rate for such day shall be such rate on such transactions on
      the
      next preceding Business Day as so published on the next succeeding Business
      Day,
      and (ii) if no such rate is so published on such next succeeding Business
      Day as provided in clause (i), the Federal Funds Rate for such day shall be
      the average rate quoted to the Person serving as Administrative Agent on such
      day on such transactions as determined by the Administrative Agent.

     

    “Final
      Maturity Date” means the last day of the Revolving Credit Availability
      Period.

     

    “Fitch”
      means Fitch, Inc. and any successor thereto.

     

    “Fitch
      Rating” means, at any time, the rating of the Index Debt then most recently
      announced by Fitch.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 6
          -

      

       

    

    “Fronted
      Letter of Credit” means (i) any letter of credit issued by an Issuing Bank
      pursuant to Section 2.01(a)(1)(ii) and (ii) each of the Existing Letters of
      Credit, and in each case any Replacement Letter of Credit therefor.

     

    “Increase
      Date” has the meaning set forth in Section 3.04(f).

     

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

     

    “Initial
      Banks” means each of the financial institutions and other institutional
      lenders listed on the signature pages hereof.

     

    “Insurance
      Regulatory Authority” means, as to any Material Insurance Subsidiary, the
      insurance department or similar administrative authority or agency located
      in
      the state in which such Material Insurance Subsidiary is domiciled.

     

    “Interest
      Period” means, for each Eurodollar Rate Advance comprising part of the same
      Borrowing, the period commencing on the date of such Eurodollar 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 selected by the Company
      pursuant to the provi­sions below and thereafter 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 the Company pursuant to the
      provisions below.  The duration of each such Interest Period shall be
      one, two, three or six months, as the Com­pany may, upon notice received by
      the Administrative 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 that:

    

    (1)  any
      Interest Period that would otherwise begin before and end after the Final
      Maturity Date shall end on the Final Maturity Date;

    

    (2)  Interest
      Periods commencing on the same date for Eurodollar Rate Advances comprising
      part
      of the same Borrowing shall be of the same duration;

    

    (3)  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 fall
      on
      the next succeeding Business Day, except that if such extension would cause
      the
      last day of such Interest Period to fall in the next following calendar month,
      the last day of such Interest Period shall fall on the next preceding Business
      Day; and

    

    (4)  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.

    

    “Issuing
      Bank” means each Bank designated as an “Issuing Bank” hereunder that has
      agreed to such designation and has been approved as an “Issuing Bank” by the
      Administrative Agent and the Company in their reasonable discretion, each in
      its
      capacity as the issuer of Fronted Letters of Credit hereunder, and its
      successors in such capacity as provided in Section 2.06.  Each
      Issuing Bank may, in its discretion, arrange for one or more Fronted Letters
      of
      Credit to be issued by Affiliates of such Issuing Bank, in which case the term
      “Issuing Bank” shall include any such Affiliate with respect to Fronted Letters
      of Credit issued by such Affiliate.  Each Bank identified on
      Schedule 3 as the Issuing Bank in respect of an Existing Letter of Credit
      shall be deemed to be an Issuing Bank.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 7
          -

      

       

    

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

     

    “LC
      Expiry Date” means, at any time for any Letter of Credit, the expiry date of
      such Letter of Credit.

     

    “LC
      Exposure” means, at any time, for any Bank, the sum of (i) such Bank’s
      Applicable Percentage of the undrawn portion of the Maximum Amount of all
      Letters of Credit at such time plus (ii) such Bank’s Applicable
      Percentage of the aggregate amount of any and all LC Disbursements that
      have not been reimbursed by or on behalf of the Company at such
      time.

     

    “LC
      Reimbursement Obligation” means the obligation of the Company under
      Section 2.02 to reimburse to each Bank the amount of each LC Disbursement
      by such Bank.

     

    “LC
      Sublimit” means $1,250,000,000.

     

    “Letter
      of Credit” means any Multi-Bank Letter of Credit or Fronted Letter of
      Credit, including any Replacement Letter of Credit.

     

    “Leverage
      Ratio” means, at any time, the ratio of (i) Total Consolidated Debt
to (ii) Total Consolidated Capitalization; provided that
      the Leverage Ratio shall be computed without taking into account (x) “Net
      unrealized appreciation, fixed maturities” as determined in accordance with
      generally accepted accounting principles in the consolidated balance sheets
      of
      the Company or (y) “Postretirement pension benefits liability adjustment” as
      determined in accordance with generally accepted accounting principles in the
      consolidated balance sheets of the Company.

     

    “Lien”
      means any lien, security interest or other charge or encumbrance of any kind,
      or
      any other type of preferential arrangement, including the lien or retained
      security title of a conditional vendor.

     

    “Majority
      Banks” means, at any time, Banks having more than 51% of the sum of the then
      aggregate amount of the Revolving Credit Exposures and LC
      Exposures.

     

    “Margin
      Stock” means margin stock within the meaning of Regulation U of the
      Board of Governors of the Federal Reserve System, as from time to time
      amended.

     

    “Material
      Adverse Change” or “Material Adverse Effect” means a material adverse
      change in or a material adverse effect on (i) the business, condition (financial
      or otherwise), operations, performance or properties of the Company and its
      Subsidiaries, taken as a whole, or (ii) the legality, validity or
      enforceability of this Agreement or the Notes.

     

    “Material
      Insurance Subsidiary” means a Material Subsidiary that is licensed to do a
      life insurance business.

     

    “Material
      Subsidiary” means:

     

    (a)  Connecticut
      General; and

     

    (b)  each
      other Subsidiary of the Company (i) whose assets constitute 10% or more of
      the total assets of the Company and its Consolidated Subsidiaries (determined
      on
      a consolidated basis without duplication in accordance with generally accepted
      accounting principles) or (ii) whose revenues constituted 10% or more of
      the total revenues of the Company and its Consolidated Subsidiaries (determined
      on a consolidated basis without duplication in accordance with generally
      accepted accounting principles) during the most recently concluded fiscal year
      of the Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 8
          -

      

       

    

    “Maximum
      Amount” of any Letter of Credit means the amount specified in such Letter of
      Credit as the maximum aggregate amount that may be drawn
      thereunder.

     

    “Moody’s”
      means Moody’s Investors Service, Inc. and any successor thereto.

    

    “Moody’s
      Rating” means, at any time, the rating of the Index Debt then most recently
      announced by Moody’s.

     

    “Multi-Bank
      Letter of Credit” means any letter of credit issued by the Banks pursuant to
      Section 2.01(a)(1)(i) (including any Replacement Letter of Credit
      therefor).

     

    “NAIC”
      means the National Association of Insurance Commissioners and any successor
      thereto.

    

    “NAIC
      Approved Bank” means (a) any Bank that is a bank listed on the most current
      Bank List (the “NAIC Bank List”) of banks determined by the Securities
      Valuation Office of the NAIC and approved by the NAIC as banks whose letters
      of
      credit will be acceptable to the NAIC or (b) any Bank as to which its Confirming
      Bank is a bank listed on the NAIC Bank List.

     

    “New/Increasing
      Bank” has the meaning set forth in Section 3.04(f).

     

    “Non-Extending
      Bank” has the meaning set forth in Section 3.04(e).

     

    “Non-Recourse
      Debt” means any
      Debt of the Company, any of the Company’s Subsidiaries or any consolidated
      variable interest entities shown on a separate line of the Company’s
      consolidated balance sheet as “non-recourse obligations” if, and so long as,
      such Debt meets the requirements of clause (a) or clause (b) below,
provided that Debt will not fail to qualify as Non-Recourse Debt or be
      considered an indirect liability of the company solely because a Company
      Subsidiary has indemnified any lender in respect of such Debt against damages
      resulting from exceptions to non-recourse liability in general usage in the
      relevant industry at the time such Debt is incurred (such as fraud, waste,
      misapplication of funds, failure to maintain insurance coverage, and
      environmental liability):

    

    (a)  (i)
      the instruments governing such Debt limit the recourse (whether direct or
      indirect) of the holder or holders thereof against the Company and its
      Subsidiaries for the payment of such Debt to the property securing such Debt
      and
      (ii) if such Debt is incurred after the date hereof by the Company or a
      Subsidiary of the Company which is organized under the laws of the United States
      or any State thereof, the property securing such Debt is not material to the
      business, condition (financial or otherwise), operations or properties of the
      Company and its Subsidiaries, taken as a whole, as determined at the time such
      Debt is incurred; or

     

    (b)  (i)
      the sole obligors of
      such Debt are (x) a corporation or other entity (such obligor, a “Specified
      Entity”) formed solely for the purpose of owning (or owning and operating)
      property which is (or may be) subject to Lien securing such Debt and (y) other
      entities that are not Company Subsidiaries or other entities in which the
      Company or any Company Subsidiary holds a direct or indirect ownership or other
      beneficial interest, (ii) such Specified Entity owns no other material
      property, (iii) the sole collateral security provided by the Company and its
      Subsidiaries with respect to such Debt (if any) consists of property owned
      by
      such Specified Entity and/or the capital stock of (or equivalent ownership
      interests in) such Specified Entity and (iv) neither the Company nor any of
      its
      other Subsidiaries has any liability, direct or indirect, in respect of such
      Debt other than indemnification obligations to any lender in respect of such
      Debt against damages resulting from exceptions to nonrecourse liability in
      general usage in the relevant industry at the time such Debt is incurred such
      as
      fraud, waste, misapplication of funds, failure to maintain insurance coverage,
      and environmental liability).

    

    “Note”
      shall have the meaning set forth in Section 3.03.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 9
          -

         

      

    

    “Notice
      of Borrowing” has the meaning specified in Section 3.02(a).

     

    “Notice
      of Increase” has the meaning set forth in Section 2.01(e).

     

    “Notice
      of Issuance” has the meaning set forth in Section 2.01(e).

     

    “Notice
      of Reduction” has the meaning set forth in
      Section 2.01(e).

     

    “OECD”
      means the Organization for Economic Cooperation and Development.

     

    “Other
      Taxes” has the meaning specified in Section 4.05.

     

    “Outside
      Expiry Date” means the date ten Business Days prior to the Termination
      Date.

     

    “Permitted
      Investments” means securities issued or unconditionally guaranteed by the
      Government of the United States of America or any agency thereof and securities
      issued or unconditionally guaranteed by the central government of any country
      that is a member of the OECD, rated AA or better (or the
      equivalent).

     

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

     

    “Quarterly
      Dates” means the last Business Day of March, June, September and
      December in each year, the first of which shall be the first such day after
      the date hereof.

     

    “Rating”
      means the Moody’s Rating, the S&P Rating or the Fitch Rating, as the case
      may be.

    

    “Rating
      Level Change” means a change in the Moody’s Rating, the S&P Rating, or
      the Fitch Rating, that results in a change from one Rating Level Period to
      another, which Rating Level Change shall be deemed to take effect on the date
      on
      which the relevant change in rating is first announced by Moody’s, S&P or
      Fitch.

    

    “Rating
      Level Period” means a Rating Level 1 Period, a Rating Level 2
      Period, a Rating Level 3 Period, a Rating Level 4 Period, a Rating
      Level 5 Period or a Rating Level 6 Period; provided
      that:

    

    
      	
              (i)  

            	
              “Rating
                Level 1 Period” means a period during which the Moody’s Rating is at
                or above A2, the S&P Rating is at or above A or the Fitch Rating is at
                or above A;

            

    

    

    
      	
              (ii)  

            	
              “Rating
                Level 2 Period” means a period that is not a Rating Level 1
                Period, during which the Moody’s Rating is at or above A3, the S&P
                Rating is at or above A- or the Fitch Rating is at or above
                A-;

            

    

    

    
      	
              (iii)  

            	
              “Rating
                Level 3 Period” means a period that is not a Rating Level 1
                Period or a Rating Level 2 Period, during which the Moody’s Rating is at
                or above Baa1, the S&P Rating is at or above BBB+ or the Fitch Rating
                is at or above BBB+;

            

    

    

    
      	
              (iv)  

            	
              “Rating
                Level 4 Period” means a period that is not a Rating Level 1
                Period, a Rating Level 2 Period or a Rating Level 3 Period, during
                which
                the Moody’s Rating is at or above Baa2, the S&P Rating is at or above
                BBB or the Fitch Rating is at or above
                BBB;

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 10
          -

      

       

    

    
      	
              (v)  

            	
              “Rating
                Level 5 Period” means a period that is not a Rating Level 1
                Period, a Rating Level 2 Period, a Rating Level 3 Period or a Rating
                Level
                4 Period, during which the Moody’s Rating is at or above Baa3, the S&P
                Rating is at or above BBB- or the Fitch Rating is at or above BBB-;
                and

            

    

    

    
      	
              (vi)  

            	
              “Rating
                Level 6 Period” means a period that is not a Rating Level 1
                Period, a Rating Level 2 Period, a Rating Level 3 Period, a
                Rating Level 4 Period or a Rating Level 5
                Period;

            

    

    

    provided
      further that (a) if the Moody’s Rating, the S&P Rating
      and the Fitch Rating differ by one Rating Level, then the applicable Rating
      Level shall be the highest of such Ratings and (b) if the Moody’s Rating,
      the S&P Rating and the Fitch Rating differ by more than one Rating Level,
      then the applicable Rating Level Period shall be the lower Rating Level of
      the
      two highest Rating Levels (for purposes of the foregoing, Rating Level 1 is
      the
      highest and Rating Level 6 is the lowest); and providedfurther
      that any period during which there is no Rating shall be a Rating Level 6
      Period.

    

    “Reference
      Banks” means Citibank, N.A., Bank of America, N.A. and JPMorgan Chase Bank
      (and any successors thereof).

     

    “Replacement
      Letter of Credit” means any letter of credit issued in accordance with the
      provisions of 10.06(b)(v), in replacement of and in the same form as the
      relevant replaced Letter of Credit.

     

    “Responsible
      Officer” of the Company means the Chief Financial Officer, the Treasurer or
      any Assistant Treasurer of the Company or any Vice President of the Company
      in
      the finance department.

     

    “Revolving
      Credit Availability Period” means the period from the Effective Date until
      the Termination Date.

     

    “Revolving
      Credit Commitment” means, for any Bank, at any time, (i) such Bank’s
      Commitment, minus (ii) such Bank’s Applicable Percentage of the
      aggregate Maximum Amount of all outstanding Letters of Credit at such
      time.

     

    “Revolving
      Credit Exposure” means, at any time, for any Bank, the sum of (i) the
      unused amount of such Bank’s Revolving Credit Commitment plus
      (ii) the aggregate outstanding principal amount of all Advances by such
      Bank.

     

    “S&P”
      means Standard & Poor’s Rating Services and any successor
      thereto.

     

    “S&P
      Rating” means, at any time, the rating of the Index Debt then most recently
      announced by S&P.

     

    “Solvent”
      means, with respect to any Person at any time, that (a) the fair value of
      the property of such Person is greater than the total amount of liabilities
      (including contingent liabilities) of such Person, (b) the present fair
      saleable value of the property of such Person is not less than the amount that
      will be required to pay the probable liability of such Person on its debts
      as
      they become absolute and matured, (c) such Person does not intend to, and
      does not believe that it will, incur debts or liabilities beyond such Person’s
      ability to pay as such debts and liabilities mature, and (d) such Person is
      not engaged in a business and is not about to engage in a business for which
      such Person’s property would constitute an unreasonably small
      capital.

     

    “Subsidiary”
      means, with respect to any Person, any corporation, partnership, limited
      liability company or other entity of which at least a majority of the securities
      or other ownership interests having by the terms thereof ordinary voting power
      to elect a majority of the board of directors or other 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 11
          -

      

       

    

    persons
      performing similar functions of such corporation, partnership, limited liability
      company or other entity (irrespective of whether or not at the time securities
      or other ownership interests of any other class or classes of such corporation,
      partnership or other entity shall have or might have voting power by reason
      of
      the happening of any contingency) is at the time directly or indirectly owned
      or
      controlled by such Person or one or more Subsidiaries of such Person or by
      such
      Person and one or more Subsidiaries of such Person.

     

    “Taxes”
      has the meaning specified in Section 4.05.

    

    “Termination
      Date” means the date five years after the Effective Date, subject to
      extension (in the case of each Bank consenting thereto) as provided in Section
      3.04(e); provided that if such day is not a Business Day the
      Termination Date shall be the immediately preceding Business Day.

    

    “Total
      Commitments” means $1,750,000,000, as such amount may be reduced pursuant to
      Section 3.04(b) or increased pursuant to Section 3.04(f).

    

    “Total
      Consolidated
      Capitalization” means, at any time, the sum of (i) Total Consolidated Debt
plus (ii) the total amount of shareholder’s equity of the
      Company.

    

    “Total
      Consolidated Debt” means, at any time, the aggregate outstanding principal
      amount of Debt of the Company and its Consolidated Subsidiaries of the kinds
      referred to in clause (a), (b) or (d) of the definition of “Debt” in this
      Section 1.01, or of the kinds referred to in clause (e) or (f) thereof
      to the extent relating to Debt of the kinds referred to in said clause (a),
      (b) or (d), all determined on a consolidated basis in accordance with generally
      accepted accounting principles.

     

    “Type”
      has the meaning specified in the definition of “Advance.”

     

    “VADBe
      Hedge” means the program implemented by Connecticut General in 2002, as
      refined and revised from time to time at Connecticut General’s sole discretion,
      to substantially reduce the equity market exposures related to variable annuity
      death benefit reinsurance contracts.

     

    “Voting
      Stock” means, at any time, the outstanding securities of the Company
      entitled to vote generally in an election of directors of the
      Company.

     

    “Wholly
      Owned Subsidiary” means, with respect to any Person, any corporation,
      partnership, limited liability company or other entity of which all of the
      equity securities or other ownership interests (other than, in the case of
      a
      corporation, directors’ qualifying shares) are directly or indirectly owned or
      controlled by such Person or one or more Wholly Owned Subsidiaries of such
      Person or by such Person and one or more Wholly Owned Subsidiaries of such
      Person.

     

    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” mean “to but excluding”.

    

    SECTION
      1.03.  Accounting Terms; Terms Generally.  All
      accounting terms not specifically defined herein shall be construed in
      accordance with generally accepted accounting principles consistent with those
      applied in the preparation of the financial statements referred to in
      Section 6.01(e).  The definitions of terms herein shall apply
      equally to the singular and plural forms of the terms defined.  The
      words “include”, “includes” and “including” shall be deemed to be followed by
      the phrase “without limitation”.  Unless the context requires
      otherwise (a) all references herein to Articles, Sections, Exhibits and
      Schedules shall be construed to refer to Articles and Sections of, and Exhibits
      and Schedules to, this Agreement and (b) any reference to any law or
      regulation herein shall, unless otherwise specified, refer to such law or
      regulation as amended, modified or supplemented from time to time.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 12
          -

      

       

    

    ARTICLE
      II

    LETTERS
      OF CREDIT

     

    

    SECTION
      2.01.  Letters of Credit.

    

    (a)  Letters
      of Credit.  (1)  Subject to the terms and conditions of
      this Agreement, (i) the Banks severally agree, at the request of the
      Company, to issue one or more standby letters of credit hereunder on a several
      liability basis (as from time to time amended, each a “Multi-Bank Letter of
      Credit”) on any Business Day on or before the Outside Expiry Date,
      (ii) each Issuing Bank agrees, at the request of the Company, to issue one
      or more standby letters of credit hereunder (as from time to time amended,
      each
      a “Fronted Letter of Credit”) on any Business Day on or before the
      Outside Expiry Date and (iii) the Banks severally agree, in the case of
      each Multi-Bank Letter of Credit, and each Issuing Bank agrees, in the case
      of
      each Fronted Letter of Credit (and the Banks hereby irrevocably authorize such
      Issuing Bank to agree), to increase the Maximum Amount of any such Letter of
      Credit from time to time on or before the Outside Expiry Date; provided
      that each such issuance of, or increase in the Maximum Amount of, any Letter
      of
      Credit shall be subject to the limitations set forth in
      Section 2.01(a)(4).

    

    (2)  Each
      Multi-Bank Letter of Credit shall be in form and substance reasonably
      satisfactory to the Banks and the Company (and shall in any event contain
      language substantially similar to the last paragraph of Exhibit A-1), each
      Fronted Letter of Credit shall be in form and substance reasonably satisfactory
      to the Issuing Bank and the Company, and the Arbor Letter of Credit shall be
      in
      substantially the form of

    Exhibit
      A-1.

    

    (3)  Each
      Multi-Bank Letter of Credit shall be issued by all of the Banks as a single
      multi-bank letter of credit; provided that the obligation of each Bank
      thereunder shall be several, and not joint, to the extent of such Bank’s
      Applicable Percentage of the Maximum Amount; and each Fronted Letter of Credit
      shall be issued by an Issuing Bank as sole issuer, and the Banks shall be deemed
      to acquire participations therein on the terms and conditions of
      Section 2.01(b).

    

    (4)  Anything
      in this Agreement to the contrary notwithstanding, (i) the sum of
      (x) the aggregate amount of the LC Exposures of all of the Banks
plus (y) the aggregate amount of the Revolving Credit Exposures of
      all of the Banks may not at any time exceed the Total Commitments, (ii) the
      aggregate Maximum Amount of all Letters of Credit may not at any time exceed
      the
      LC Sublimit, and (iii) no Letter of Credit may provide for an
      LC Expiry Date later than the Outside Expiry Date.  Subject to
      clause (iii), any Letter of Credit shall, if requested by the Company,
      include customary evergreen provisions (including appropriate language allowing
      the relevant Issuing Bank to exercise non-renewal rights).

    

    (b)  Participations
      in Fronted Letters of Credit.  (1)  Upon the issuance by
      an Issuing Bank of a Fronted Letter of Credit (and any amendment to a Fronted
      Letter of Credit increasing the amount thereof) in accordance herewith, and
      without any further action on the part of such Issuing Bank or any Bank, such
      Issuing Bank hereby grants to each Bank, and each Bank hereby acquires from
      such
      Issuing Bank, a participation in such Fronted Letter of Credit equal to such
      Bank’s Applicable Percentage of the aggregate amount available to be drawn under
      such Fronted Letter of Credit.  Each Bank acknowledges and agrees that
      its acquisition of participations pursuant to this Section 2.01(b) in
      respect of each Fronted Letter of Credit shall be automatic, absolute and
      unconditional irrespective of the occurrence or continuance of any Default,
      or
      any reduction or termination of the Commitments, or any other circumstance
      whatsoever.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 13
          -

      

       

    

    (2)  In
      consideration and in furtherance of the foregoing, each Bank severally agrees
      to
      pay to the Administrative Agent, for account of each Issuing Bank, such Bank’s
      Applicable Percentage of each LC Disbursement made by such Issuing Bank
      under a Fronted Letter of Credit promptly upon the request of such Issuing
      Bank,
      through the Administrative Agent, at any time from the time of such
      LC Disbursement until such LC Disbursement is reimbursed by the
      Company in full or at any time after any reimbursement payment is required
      to be
      refunded to the Company for any reason.

    

    (3)  The
      obligation of each Bank to make payments under clause (2) shall be absolute
      and unconditional irrespective of any amendment, renewal or extension of any
      Fronted Letter of Credit, the occurrence or continuance of any Default, any
      reduction or termination of the Commitments, any circumstance referred to in
      Section 2.02(b), or any other circumstance whatsoever.  Each such
      payment shall be made without setoff, counterclaim, abatement, withholding
      or
      reduction whatsoever and shall be made in the manner provided in
      Section 3.02 with respect to Advances made by such Bank, and the
      Administrative Agent shall promptly pay to such Issuing Bank the amounts so
      received by it from the Banks.  Promptly following receipt by the
      Administrative Agent of any payment from the Company pursuant to this paragraph,
      the Administrative Agent shall distribute such payment to the relevant Issuing
      Bank or, to the extent that the Banks have made payments pursuant to this
      paragraph to reimburse such Issuing Bank, then to such Banks and such Issuing
      Bank as their interests may appear.  Any payment made by a Bank
      pursuant to this paragraph to reimburse an Issuing Bank for any
      LC Disbursement shall not relieve the Company of its obligation to
      reimburse such LC Disbursement.

    

    (c)  Arbor
      Letter of Credit.  The Arbor Letter of Credit shall be a
      Multi-Bank Letter of Credit.  The initial LC Expiry Date of the Arbor
      Letter of Credit shall be the date one year after the issuance thereof, subject
      to automatic extension to the extent provided in such Letter of
      Credit.  The Administrative Agent will give the notification of
      non-extension contemplated by the fifth paragraph of the Arbor Letter of Credit
      if requested to do so by written notice to the Administrative Agent, received
      by
      the Administrative Agent not more than 60 days and not less than 45 days prior
      to the then effective LC Expiry Date thereof, from (i) the Majority Banks or
      (ii) the Company or (iii) Arbor; provided that the Administrative Agent
      shall, if requested to do so by any Bank, give such notification of
      non-extension at such time as is required to assure that the LC Expiry Date
      does
      not fall beyond the Outside Expiry Date.

    

    (d)  Existing
      Letters of Credit.  Effective on the Effective Date, each Existing
      Letter of Credit shall be deemed to be a Fronted Letter of Credit issued and
      outstanding under this Agreement (and without limiting the foregoing, effective
      from and after the Effective Date, Section 2.01(b) shall be deemed to apply
      thereto as if each such Existing Letter of Credit, for this purpose, were issued
      on the Effective Date).

    

    (e)  Notices
      of Issuance, Increase, Reduction of Letters of Credit.  To request
      the issuance of a Letter of Credit or an increase in the Maximum Amount of
      a
      Letter of Credit as provided in Section 2.01(a), the Company shall hand-deliver
      or telecopy (or transmit by electronic communication, if arrangements for doing
      so have been approved by the Administrative Agent) to the Administrative Agent
      (if by hand delivery or telecopy, not later than noon New York City time on
      the
      Business Day prior to the requested date of issuance or amendment, and if by
      approved electronic communication, not later than 10:00 a.m. New York City
      time on the requested date of issuance or amendment) a notice in substantially
      the form of Exhibit A-2 (the “Notice of Issuance”) or
      Exhibit A-3 (a “Notice of Increase”), as the case may be,
      identifying the relevant Letter of Credit and specifying, in the case of the
      Notice of Issuance, the date of issuance and the initial Maximum Amount thereof,
      and, in the case of a Notice of Increase, the proposed effective date of the
      amendment effecting the increase in the Maximum Amount thereof and the

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
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    increased
      Maximum Amount.  In addition, the Company may from time to time, by
      giving notice to the Administrative Agent in substantially the form of
      Exhibit A-4 (a “Notice of Reduction”) by the times provided for
      notices in the preceding sentence, and with the prior written consent of the
      Beneficiary of the relevant Letter of Credit, elect to reduce the Maximum Amount
      of such Letter of Credit in increments of $1,000,000 (or, if less, the remaining
      undrawn amount thereof).  The Administrative Agent shall promptly
      notify the Banks of its receipt of any such notice.  The
      Administrative Agent (in the case of a Multi-Bank Letter of Credit) or the
      relevant Issuing Bank (in the case of a Fronted Letter of Credit) shall, in
      the
      case of any such increase or reduction and subject in the case of a reduction,
      to its receipt of any required consent from the Beneficiary of such Letter
      of
      Credit in form and substance satisfactory to it, promptly execute and deliver
      an
      amendment to such Letter of Credit effecting such increase or reduction, and
      notify the Banks, the Administrative Agent (in the case of a Fronted Letter
      of
      Credit) and the Company of such increase or reduction (confirming the effective
      date thereof).  If an Issuing Bank has received, at its office
      specified herein, written notice from the Company, a Bank or the Administrative
      Agent at least one Business Day prior to the requested date of issuance or
      amendment of a Fronted Letter of Credit, that a condition set forth in
      Section 5.02(a) or (b) to such issuance or amendment has not been
      satisfied, such Issuing Bank shall not proceed with such issuance or
      amendment.

    

    (f)  Notices
      of Non-Extension.  In the case of any Letter of Credit that
      contains evergreen provisions (other than the Arbor Letter of Credit, which
      is
      provided for in Section 2.01(c)), the Administrative Agent (in the case of
      any Multi-Bank Letter of Credit) and the Issuing Bank (in the case of any
      Fronted Letter of Credit) shall comply with the instructions of the Majority
      Banks given pursuant to any provisions for non-extension of the expiry date
      thereof.

    

    (g)  Representation.  Each
      Bank represents and warrants as of the date of issuance of each Multi-Bank
      Letter of Credit that it is an Eligible Bank (or, if such Bank is not an
      Eligible Bank at such time, that such Bank’s obligations under such Letter of
      Credit are confirmed, at the expense of such Bank, by a bank that meets the
      requirements of an Eligible Bank).

    

    (h)  Issuance
      and Administration of Multi-Bank Letters of Credit.  Any
      Multi-Bank Letter of Credit, any amendment thereto and any Replacement Letter
      of
      Credit for a Multi-Bank Letter of Credit shall be executed and delivered by
      the
      Administrative Agent in the name and on behalf of, and as attorney-in-fact
      for,
      each of the Banks, and the Administrative Agent shall act under each Multi-Bank
      Letter of Credit as the agent of each Bank to (i) receive drafts presented
      by the Beneficiary thereunder, (ii) determine whether such drafts are in
      compliance with the terms and conditions of such Multi-Bank Letter of Credit,
      (iii) notify each Bank and the Company that a valid drawing has been made and
      the date that the related LC Disbursements are to be made, and (iv) receive
      and
      implement any request for amendment of such Multi-Bank Letter of Credit as
      provided herein; provided that anything herein to the contrary
      notwithstanding, the Administrative Agent, in its capacity as such, shall have
      no obligation or liability whatsoever to make any payment under any Multi-Bank
      Letter of Credit.  Each Bank hereby irrevocably appoints and
      designates the Administrative Agent as its attorney-in-fact, which appointment
      is irrevocable and coupled with an interest, acting through any duly authorized
      officer of the Person that is serving as the Administrative Agent, to execute
      and deliver in the name and on behalf of such Bank any Multi-Bank Letter of
      Credit, any such amendment thereto and any Replacement Letter of Credit of
      a
      Multi-Bank Letter of Credit, in each case in accordance with the terms
      hereof.

    

    SECTION
      2.02.  Reimbursement for LC Disbursements, Cover,
      Etc.

    

    (a)  Reimbursement.  The
      Company agrees to reimburse (1) each Bank for the full amount of each LC
      Disbursement under a Multi-Bank Letter of Credit by such Bank and (2) each
      Issuing Bank for the full amount of each LC Disbursement under a Fronted Letter
      of Credit issued by such Issuing Bank, each such reimbursement to be made by
      paying to the 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
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    Administrative
      Agent an amount equal to the amount of such LC Disbursement (i) not later
      than noon, New York City time, on the Business Day that the Company receives
      notice of such LC Disbursement if such notice is received by it prior to
      10:00 a.m., New York City time, or (ii) not later than the Business
      Day immediately following the day that the Company receives such notice, if
      such
      notice is received by it on a day which is not a Business Day or is not received
      prior to 10:00 a.m., New York City time, on a Business Day.  If
      the Company fails to make such payment when due with respect to a Fronted Letter
      of Credit, the Administrative Agent shall notify each Bank of the applicable
      LC
      Disbursement under such Fronted Letter of Credit, the payment then due from
      the
      Company in respect thereof and such Bank’s Applicable Percentage
      thereof.  Reimbursements under this Section 2.02(a) may be made
      with the Company’s funds or, subject to the terms and conditions of this
      Agreement, with the proceeds of a Borrowing.

    

    (b)  LC
      Reimbursement Obligations Absolute.

    

    (1)  The
      obligation of the Company to reimburse the Banks for LC Disbursements with
      respect to Multi-Bank Letters of Credit or the Issuing Banks with respect to
      Fronted Letters of Credit as provided in Section 2.02(a) shall be absolute,
      unconditional and irrevocable, and shall be performed strictly in accordance
      with the terms of this Agreement under all circumstances, including the
      following: (i) any lack of validity or enforceability of any Letter of
      Credit, or of any term or provision therein, (ii) any draft or other
      document presented under the relevant Letter of Credit proving to be forged,
      fraudulent or invalid in any respect or any statement therein being untrue
      or
      inaccurate in any respect, or (iii) payment under the relevant Letter of
      Credit against presentation of a draft or other document that does not comply
      strictly with the terms of such Letter of Credit.

    

    (2)  The
      Company shall be obligated to make the reimbursements provided for in this
      Section 2.02 in respect of each Letter of Credit regardless of the identity
      of the account party on such Letter of Credit.

    

    (3)  Neither
      the Administrative Agent nor any Bank nor any Issuing Bank nor any of their
      respective directors, officers, employees or representatives shall have any
      liability or responsibility by reason of or in connection with the issuance
      or
      transfer of any Letter of Credit or any payment or failure to make any payment
      thereunder (irrespective of any of the circumstances referred to in the
      preceding clause), or any error, omission, interruption, loss or delay in
      transmission or delivery of any draft, notice or other communication under
      or
      relating to any Letter of Credit, any error in interpretation of technical
      terms
      or any consequence arising from causes beyond their control; provided
      that the foregoing shall not be construed to excuse the Administrative Agent
      or
      a Bank or an Issuing Bank from liability to the Company to the extent of any
      direct damages (as opposed to consequential damages, claims in respect of which
      are hereby waived by the Company to the extent permitted by applicable law)
      suffered by the Company that are caused by the gross negligence or willful
      misconduct of the Administrative Agent or such Bank or such Issuing Bank, as
      the
      case may be, or in the case of any Bank, its failure to make an LC Disbursement
      in respect of any drawing made in accordance with the terms and conditions
      of
      the relevant Letter of Credit and this Agreement.  The parties
      expressly agree that:

    

    (A)  the
      Administrative Agent and each Issuing Bank may accept documents that appear
      on
      their face to be in substantial compliance with the terms of the relevant Letter
      of Credit without responsibility for further investigation, regardless of any
      notice or information to the contrary, and may make payment upon presentation
      of
      documents that appear on their face to be in substantial compliance with the
      terms of the relevant Letter of Credit;

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
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    (B)  the
      Administrative Agent or an Issuing Bank, as the case may be, shall have the
      right, in its sole discretion, to decline to accept such documents and to make
      such payment if such documents are not in strict compliance with the terms
      of
      the relevant Letter of Credit; and

    

    (C)  without
      prejudice to Section 9.02, this sentence shall establish the standard of care
      to
      be exercised by the Administrative Agent or an Issuing Bank, as the case may
      be,
      when determining whether drafts and other documents presented under any Letter
      of Credit comply with the terms thereof (and the parties hereto hereby waive,
      to
      the extent permitted by applicable law, any standard of care inconsistent with
      the foregoing).

    

    SECTION
      2.03.  LC Disbursement Procedures.  The
      Administrative Agent (in the case of a Multi-Bank Letter of Credit) and each
      Issuing Bank (in the case of a Fronted Letter of Credit) shall, within a
      reasonable time following its receipt thereof, examine any draft submitted
      by
      the Beneficiary under a Letter of Credit and promptly after such examination
      (i) notify the Company and, in the case of a Multi-Bank Letter of Credit,
      each Bank by telephone (confirmed by telecopy) of receipt of such draft and
      (ii) deliver to the Company and each Bank, in the case of a Multi-Bank
      Letter of Credit, a copy thereof.  With respect to any drawing
      properly made under any Multi-Bank Letter of Credit, each Bank will make an
      LC
      Disbursement in an amount equal to its Applicable Percentage of the amount
      of
      such drawing, such LC Disbursement to be made to the Administrative Agent’s
      Account not later than 1:00 p.m. (New York City time) on the date specified
      in such notification from the Administrative Agent (which shall be at least
      one
      Business Day after the date of such notification).  The Administrative
      Agent (in the case of a Multi-Bank Letter of Credit) and the Issuing Bank (in
      the case of a Fronted Letter of Credit) will make the proceeds of each such
      LC
      Disbursement available to the relevant Beneficiary by promptly crediting the
      amounts so received, in like funds, to such account as such Beneficiary shall
      direct.  Promptly following the making of any LC Disbursement, the
      Administrative Agent will notify the Banks and the Company thereof;
provided that any failure to give or delay in giving such notice shall
      not relieve such Company of any of its obligations hereunder.

    

    SECTION
      2.04.  Interest.  Without
      prejudice to the obligations of the Company under Section 2.02, if the
      Company does not reimburse (a) the Banks for the full amount of an LC
      Disbursement under a Multi-Bank Letter of Credit or (b) the relevant
      Issuing Bank for the full amount of an LC Disbursement under a Fronted Letter
      of
      Credit on the date such LC Disbursement is made (without regard for when notice
      thereof is given), the Company agrees to pay interest on the LC Reimbursement
      Obligation relating to such LC Disbursement, for each day from the date such
      LC
      Disbursement is made until the date that the Company reimburses such LC
      Disbursement in full, at a rate per annum equal to 2% per annum plus
      the Base Rate from time to time, such interest to be payable on
      demand.

    

    SECTION
      2.05.  Provision of Cover.

    

    (a)  If
      there shall occur an Event of Default and the Company is as a result thereof
      required pursuant to Section 8.01 to provide cover for the Letters of Credit,
      the Administrative Agent will forthwith establish a separate collateral account
      (the “Collateral Account”) at Citibank, which shall be a “securities
      account” (as defined in Section 8-501 of the UCC) in respect of which the
      Administrative Agent is the “entitlement holder” (as defined in Section
      8-102(a)(7) of the UCC), into which there shall be deposited from time to time
      the amounts paid to the Administrative Agent as cover.

    

    (b)  As
      collateral security for the prompt payment in full when due of all LC
      Reimbursement Obligations (whether now existing or hereafter from time to time
      arising), all interest thereon, and all other present and future obligations
      of
      the Company to the Banks or the Issuing Banks and the Administrative Agent
      hereunder, the Company hereby grants to the 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 17
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    Administrative
      Agent, for the benefit of the Banks and the Issuing Banks and the Administrative
      Agent, a security interest in all of its right, title and interest in, to and
      under the Collateral Account and the balances from time to time in the
      Collateral Account (including any and all securities and other financial assets
      from time to time carried therein) and any and all proceeds thereof (all such
      collateral being herein collectively called the “Cover”).  The
      balances from time to time in the Collateral Account shall not constitute
      payment of any obligation of the Company until applied by the Administrative
      Agent as provided herein.  Anything in this Agreement to the contrary
      notwithstanding, funds held in the Collateral Account shall be subject to
      withdrawal only as provided in this Section 2.05.

    

    (c)  Amounts
      on deposit in the Collateral Account shall be invested and reinvested by the
      Administrative Agent in such Permitted Investments as the Administrative Agent
      shall determine in its sole discretion.  All such investments and
      reinvestments and proceeds shall be held in the name and be under the sole
      dominion and control of the Administrative Agent and shall be credited to the
      Collateral Account.

    

    (d)  At
      any time and from time to time while an Event of Default has occurred and is
      continuing, the Administrative Agent shall have the rights and remedies of
      a
      secured party under the UCC and, without limiting the foregoing, shall, if
      so
      instructed by the Majority Banks, liquidate the Cover and credit the proceeds
      thereof to the Collateral Account and apply or cause to be applied such proceeds
      and any other balances in the Collateral Account to the payment of the
      obligations secured thereby.

    

    (e)  When
      all of the obligations of the Company under this Agreement shall have been
      paid
      in full and each Letter of Credit has expired or been terminated and no
      Commitments remain in effect, the Administrative Agent shall promptly deliver
      to
      the Company against receipt, but without recourse, warranty or representation
      whatsoever, the balances remaining in the Collateral Account.

    

    (f)  The
      Company recognizes that, by reason of prohibitions contained in the Securities
      Act of 1933, as amended, and applicable state securities laws, the
      Administrative Agent may be compelled, with respect to any sale of all or any
      part of the Cover, to limit purchasers to those who will agree, among other
      things, to acquire the same for their own account for investment and not with
      a
      view to the distribution or resale thereof.  The Company acknowledges
      that any such private sales may be at prices and on terms less favorable to
      the
      Administrative Agent than those obtainable through a public sale without such
      restrictions, and, notwithstanding such circumstances, agrees that any such
      private sale shall be deemed to the extent permitted by applicable law to have
      been made in a commercially reasonable manner and that the Administrative Agent
      shall have no obligation to engage in public sales and no obligation to delay
      the sale thereof for the period of time necessary to permit the Company to
      register it for public sale.

    

    SECTION
      2.06.  Replacement of an Issuing Bank.  An
      Issuing Bank may be replaced at any time by written agreement between the
      Company, the Administrative Agent, the replaced Issuing Bank and the successor
      Issuing Bank.  The Administrative Agent shall notify the Banks of any
      such replacement of an Issuing Bank.  At the time any such replacement
      shall become effective, the Company shall pay all unpaid fees accrued for
      account of the replaced Issuing Bank pursuant to
      Section 4.01(b).  From and after the effective date of any such
      replacement, (i) the successor Issuing Bank shall have all the rights and
      obligations of the replaced Issuing Bank under this Agreement with respect
      to
      Fronted Letters of Credit to be issued by it thereafter and (ii) references
      herein to the term “Issuing Bank” shall be deemed to include such successor or
      any previous Issuing Bank, or such successor and all previous Issuing Banks,
      as
      the context shall require.  After the replacement of an Issuing Bank
      hereunder, the replaced Issuing Bank shall remain a party hereto and shall
      continue to have all the rights and obligations of an Issuing Bank under this
      Agreement with respect to Fronted Letters of Credit issued by it prior to

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 18
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    such
      replacement, but shall not be required to issue additional Fronted Letters
      of
      Credit.  If an Issuing Bank is to be replaced with respect to an
      outstanding Fronted Letter of Credit that is issued by it, such replacement
      may
      be accomplished by (i) cancellation of the relevant outstanding Letter of
      Credit with the consent of the Beneficiary and simultaneous replacement thereof
      by the successor Issuing Bank or (ii) making other arrangements
      satisfactory to the replaced Issuing Bank to effectively assume the obligations
      of the replaced Issuing Bank with respect to such Fronted Letter of Credit
      and
      the replaced Issuing Bank shall to the extent thereof be released from its
      obligations as Issuing Bank with respect to such Fronted Letter of
      Credit.

     

    ARTICLE
      III

    ADVANCES

     

    

    SECTION
      3.01.  The Advances.

    

    (a)  Each
      Bank severally agrees, on the terms and conditions hereinafter set forth, to
      make Advances to the Company from time to time on any Business Day during the
      Revolving Credit Availability Period in an aggregate amount not to exceed at
      any
      one time outstanding such Bank’s Revolving Credit Commitment.

    

    (b)  Each
      Borrowing shall be in an aggregate amount of $10,000,000 or an integral multiple
      of $1,000,000 in excess thereof (or, if less, the aggregate amount of the unused
      Revolving Credit Commitments) and shall consist of Advances of the same Type
      made on the same day by the Banks ratably according to their respective
      Commitments.

    

    (c)  Within
      the limits of each Bank’s Revolving Credit Commitment, the Company may borrow
      under this Section 3.01, prepay pursuant to Section 3.09 and reborrow under
      this
      Section 3.01.

    

    (d)  Anything
      in this Agreement to the contrary notwithstanding, the sum of (i) the
      aggregate amount of the LC Exposures of all Banks plus (ii) the
      aggregate amount of the Revolving Credit Exposures of all Banks may not at
      any
      time exceed the Total Commitments.

    

    SECTION
      3.02.  Making the Advances.

    

    (a)  Each
      Borrowing shall be made on notice, given not later than 11:00 a.m. (New
      York City time) on the third Business Day prior to the date of the proposed
      Borrowing in the case of a Borrowing consisting of Eurodollar Rate Advances,
      or
      the date of the proposed Borrowing in the case of a Borrowing consisting of
      Base
      Rate Advances, by the Company to the Administrative Agent, which shall give
      to
      each Bank prompt notice thereof by telecopier or telex.  Each such
      notice of a Borrowing (a “Notice of Borrowing”) shall be by telecopier or
      telex, confirmed promptly in writing, in substantially the form of
      Exhibit B, specifying therein the requested (i) date of such
      Borrowing, (ii) Type of Advances comprising such Borrowing,
      (iii) aggregate amount of such Borrowing and (iv) in the case of a
      Borrowing consisting of Eurodollar Rate Advances, initial Interest Period for
      each such Advance.  Each Bank shall, before 11:00 a.m. (New York
      City time), in the case of a Borrowing consisting of Eurodollar Rate Advances,
      or before 1:00 p.m. (New York City time), in the case of a Borrowing
      consist­ing of Base Rate Advances, on the date of such Borrowing, make
      available for the account of its Applicable Lending Office to the Administrative
      Agent at the Administrative Agent’s Account, in same day funds, such Bank’s
      ratable portion of such Borrowing.  After the Administrative Agent’s
      receipt of such funds and upon fulfillment of the applicable conditions set
      forth in Article III, the Administrative Agent will make such same day
      funds available to the Company at the Company’s account at the Administrative
      Agent’s address referred to in Section 9.02; provided that
      Advances made to finance an LC Reimbursement Obligation as provided in Section
      2.02 shall be remitted 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 19
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    by
      the
      Administrative Agent to the respective Issuing Bank or the Banks as their
      interests may appear.

    

    (b)  Anything
      in Section 3.02(a) to the contrary notwithstanding, (i) the Company may not
      select Eurodollar Rate Advances for any Borrowing if the aggregate amount of
      such Borrowing is less than $10,000,000 or if the obligation of the Banks to
      make Eurodollar Rate Advances shall then be suspended pursuant to Section 3.07
      and (ii) the Eurodollar Rate Advances may not be outstanding as part of more
      than three separate Borrowings.

    

    (c)  Each
      Notice of Borrowing shall be irrevocable and binding on the
      Company.

    

    (d)  Unless
      the Administrative Agent shall have received notice from a Bank prior to the
      date of any Borrowing that such Bank will not make available to the
      Administrative Agent such Bank’s ratable portion of such Borrowing, the
      Administrative Agent may assume that such Bank has made such portion available
      to the Administrative Agent on the date of such Borrowing in accordance
      Section 3.02(a) and the Administrative Agent may, in reliance upon such
      assumption, make available to the Company on such date a corresponding
      amount.  If and to the extent that such Bank shall not have so made
      such ratable portion available to the Administrative Agent, such Bank and the
      Company severally agree to repay to the Administrative Agent forthwith on demand
      such corresponding amount together with interest thereon, for each day from
      the
      date such amount is made available to the Company until the date such amount
      is
      repaid to the Administrative Agent, at (i) in the case of the Company, the
      interest rate applicable at the time to Advances comprising such Borrowing
      and
      (ii) in the case of such Bank, the Federal Funds Rate.  If such Bank
      shall repay to the Administrative Agent such corresponding amount, such amount
      so repaid shall constitute such Bank’s Advance as part of such Borrowing for
      purposes of this Agreement and shall be made available in same day funds to
      the
      Company’s account at the Administrative Agent’s address referred to in
      Section 9.02.

    

    (e)  The
      failure of any Bank to make any LC Disbursement or any payment under
      Section 2.01(b)(2) or the Advance to be made by it as part of any Borrowing
      shall not relieve any other Bank of its obligation, if any, hereunder to make
      its LC Disbursement or payment or its Advance, but no Bank shall be responsible
      for the failure of any other Bank to make such LC Disbursement or payment or
      the
      Advance to be made by such other Bank.

    

    SECTION
      3.03.  Notes.  Any
      Bank may request that the Advances made or to be made by it be evidenced by
      a
      promissory note of the Company.  In such event, the Company shall
      promptly prepare, execute and deliver to such Bank a promissory note payable
      to
      the order of such Bank, in substantially the form of Exhibit C (a
“Note”), in an amount equal to the Commitment of such Bank and dated the
      date hereof.

    

    SECTION
      3.04.  Termination, Reduction, Extension or Increase of the
      Revolving Credit Commitments.

    

    (a)  Unless
      previously terminated, the Commitments shall automatically terminate on the
      last
      day of the Revolving Credit Availability Period.

    

    (b)  The
      Company may at any time terminate, or from time to time reduce ratably in part,
      the Revolving Credit Commitments; provided that (i) any reduction
      of the Commitments shall be in the aggregate amount of $10,000,000 or an
      integral multiple of $5,000,000 in excess thereof and (ii) the Company
      shall not terminate or reduce the aggregate amount of the Commitments if, after
      giving effect thereto, the sum of the aggregate LC Exposures plus the
      aggregate principal amount of the Advances then outstanding would exceed the
      aggregate amount of the Commitments.  No termination or reduction of
      any of the Commitments shall in any way reduce 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 20
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    or
      otherwise alter the obligations of any Issuing Bank under an outstanding Letter
      of Credit or the obligations of any of the Banks under or in connection with
      any
      outstanding Letter of Credit.

    

    (c)  The
      Company shall notify the Administrative Agent of any election to terminate
      or
      reduce the Commitments under Section 3.04(b) at least three Business Days
      prior to the effective date of each such termination or reduction, specifying
      such election and the effective date thereof.  Promptly following
      receipt of any notice, the Administrative Agent shall advise the Banks of the
      contents thereof.

    

    (d)  Each
      termination or reduction of the Commitments shall be permanent.

    

    (e)  The
      Company may, by notice to the Administrative Agent (which shall promptly notify
      the Banks) not more than 45 Business Days and not less than 30 Business Days
      prior to each anniversary of the Effective Date (such anniversary date, the
      “Extension Date”), request (each, an “Extension Request”) that the
      Banks extend the Termination Date then in effect (the “Existing Termination
      Date”) for an additional one year.  Each Bank, acting in its sole
      discretion, shall, by notice to the Company and the Administrative Agent given
      at least 15 Business Days (or such day as shall be acceptable to the Company)
      prior to the relevant Extension Date, advise the Company whether or not such
      Bank agrees to such extension; provided that any Bank that does not so
      advise the Company shall be deemed to have rejected such Extension
      Request.  The election of any Bank to agree to such extension shall
      not obligate any other Bank to so agree.

    

    The
      Company shall have the right at any time on or prior to the relevant Extension
      Date to replace any non-extending Bank (a “Non-Extending Bank”) with, and
      otherwise add to this Agreement, one or more other banks (which may include
      any
      Bank) each of which shall be an Eligible Bank (each an “Additional Commitment
      Bank”; each Additional Commitment Bank, together with any Bank that extends
      its Commitment, being collectively called the “Continuing Banks”), in
      each case with the consent of the Administrative Agent and the Issuing Bank
      (each such consent not to be unreasonably withheld).  Each Additional
      Commitment Bank which has been so approved shall enter into an agreement in
      form
      and substance satisfactory to the Company and the Administrative Agent pursuant
      to which such Additional Commitment Bank shall, effective as of the relevant
      Extension Date, undertake a Commitment and (if not already a Bank under this
      Agreement) become a Bank hereunder (and, if such Additional Commitment Bank
      is
      already a Bank, agree to increase its Commitment hereunder) in the agreed
      amount.  With respect to any Non-Extending Bank that shall not be
      replaced by an Additional Commitment Bank on the relevant Extension Date, the
      Existing Termination Date for such Non-Extending Bank shall remain unchanged
      (and the Loans made by such Bank shall be repayable on such date).

    

    If
      (and
      only if) the total of the Commitments of the Continuing Banks shall be at least
      50% of the total Commitments in effect immediately prior to the relevant
      Extension Date, then, effective as of such Extension Date, (i) the Termination
      Date (with respect to the Commitment of each Bank that has agreed to so extend
      its Commitment and of each Additional Commitment Bank) shall be extended to
      the
      date falling one year after the Existing Termination Date and each Additional
      Commitment Bank shall thereupon become a “Bank” for all purposes of this
      Agreement and (ii) the Commitment of each Non-Extending Bank that is to be
      replaced by an Additional Commitment Bank on such Extension Date shall be
      terminated.

    

    Notwithstanding
      the foregoing, the extension of the Existing Termination Date shall not be
      effective with respect to any Continuing Bank unless:

    

    (i)           no
      Default or Event of Default shall have occurred and be continuing on the
      relevant Extension Date and after giving effect to such extension;

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
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    (ii)           the
      representations and warranties contained in this Agreement are true and correct
      on and as of the relevant Extension Date and after giving effect to such
      extension as though made on and as of such date, provided that, for
      purposes of the foregoing, each date set forth in the last sentence of Section
      6.01(e) shall be deemed to be December 31 of the year for which the Company
      shall most recently have delivered the annual audited financial statements
      referenced in Section 7.01(f)(ii);

    

    (iii)           if
      any Advances or Fronted Letters of Credit shall be outstanding on the relevant
      Extension Date (to the extent that there are Additional Commitment Banks on
      such
      Extension Date) or on the relevant Existing Termination Date (to the extent
      that
      there are Non-Extending Banks whose Commitment is terminating on such Existing
      Termination Date), the Company shall have borrowed from each of the Continuing
      Banks, and the Continuing Banks shall have made Advances to the Company (in
      the
      case of Eurodollar Rate Advances, with Interest Period(s) ending on the date(s)
      of any then outstanding Interest Period(s)) and shall be deemed to have acquired
      the participations of any Non-Extending Bank whose Commitment is terminating
      on
      either such date in any outstanding Fronted Letters of Credit, and
      (notwithstanding the provisions of Section 4.04(g) requiring that
      borrowings and prepayments be made ratably in accordance with the principal
      amounts of the Advances held by the Banks) the Company shall have paid in full
      the principal of and interest on all of the Advances made by such Non-Extending
      Bank to the Company hereunder, together with any other amounts payable hereunder
      to such Non-Extending Bank (including any amounts owing pursuant to
      Section 10.04(c) as a result of such payment), so that after giving effect
      to such Advances, purchases and prepayments, the Advances (and Interest
      Period(s) of Eurodollar Rate Advance(s)) and LC Exposure in respect of all
      outstanding Fronted Letters of Credit shall be held by the Continuing Banks
      ratably in accordance with the respective amounts of their Commitments (as
      modified on the either such date) and, in that connection, the Issuing Bank
      shall be deemed to have released such Non-Extending Bank on either such date
      if
      such Non-Extending Bank’s Commitment is to be terminated on such date;
      and

    

    (iv)           if
      any Multi-Bank Letters of Credit shall be outstanding on the relevant Extension
      Date (to the extent that there are Additional Commitment Banks on such Extension
      Date) or on the relevant Existing Termination Date (to the extent that there
      are
      Non-Extending Banks whose Commitment is terminating on such Existing Termination
      Date), the Company shall have cancelled such Multi-Bank Letter of Credit and
      the
      Continuing Banks shall have simultaneously reissued a new Multi-Bank Letter
      of
      Credit on a pro rata basis in accordance with their Applicable
      Percentages (as modified on the either such date) and in accordance with the
      provisions of this Agreement.

    

    (f)           The
      Company shall have the right, so long as no Default or Event of Default shall
      have occurred and be continuing, without the consent of any Bank (except as
      described in clause (i) below) but with the consent of the Administrative
      Agent and the Issuing Bank (each such consent not to be unreasonably withheld),
      at any time but no more than once a year, to increase the aggregate amount
      of
      the Commitments by requesting any Bank or Banks to increase its (or their)
      Commitment (or Commitments) and/or, if any such Bank or Banks shall decline
      to
      increase its (or their) Revolving Credit Commitment (or Revolving Credit
      Commitments), adding one or more banks hereto each of which shall be an Eligible
      Bank (each such bank to thereupon become a “Bank” hereunder) (any such new or
      increasing Bank, a “New/Increasing Bank”); provided
      that:

    

    (i)           in
      no event shall any Bank’s Revolving Credit Commitment be increased without the
      consent of such Bank;

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 22
          -

      

       

    

    (ii)           if
      any Advances or Fronted Letters of Credit shall be outstanding on the date
      that
      any such increase is to be come effective (an “Increase Date”), the
      Company shall have borrowed from each New/Increasing Bank, and each
      New/Increasing Bank shall have made Advances to the Company (in the case of
      Eurodollar Rate Advances, with Interest Period(s) ending on the date(s) of
      any
      then outstanding Interest Period(s)) and shall be deemed to have acquired the
      participations of certain Banks in any outstanding Fronted Letters of Credit,
      and (notwithstanding the provisions of Section 4.04(g) requiring that
      borrowings and prepayments be made ratably in accordance with the principal
      amounts of the Advances held by the Banks) the Company shall have repaid
      principal of and interest on the Advances made by certain Banks to the Company
      hereunder, together with any other amounts payable hereunder to such other
      Banks
      (including any amounts owing pursuant to Section 10.04(c) as a result of
      such payment), so that after giving effect to such Advances and prepayments,
      the
      Advances (and Interest Period(s) of Eurodollar Rate Advance(s)) and LC Exposure
      in respect of all outstanding Fronted Letters of Credit shall be held by the
      Banks ratably in accordance with the respective amounts of their Commitments
      (as
      modified on such Increase Date) and, in that connection, the Issuing Bank shall
      be deemed to have released each relevant Bank on such Increase Date to the
      extent required to effect the foregoing;

    

    (iii)           if
      any Multi-Bank Letters of Credit shall be outstanding on the relevant Increase
      Date, the Company shall have cancelled such Multi-Bank Letter of Credit and
      the
      Banks (including each New/Increasing Bank) shall have simultaneously reissued
      a
      new Multi-Bank Letter of Credit on a pro rata basis in accordance with
      their Applicable Percentages (as modified on the such Increase Date) and in
      accordance with the provisions of this Agreement;

    

    (iv)           any
      such increase shall be in an integral multiple of $10,000,000 and in no event
      shall any such increase result in the Total Commitments exceeding
      $2,000,000,000;

    

    (v)           the
      Company, the Administrative Agent and, as applicable, each Bank increasing
      its
      Commitment and each new bank being added as a party hereto shall have executed
      and delivered to the Administrative Agent an agreement in form and substance
      satisfactory to each such Person; and

    

    (vi)           the
      Administrative Agent shall have received evidence satisfactory to it (including
      without limitation a certified copy of a resolution of the Board of Directors
      of
      the Company and an appropriate legal opinion of counsel to the Company) that
      such increase in the Commitments, and borrowings thereunder, have been duly
      authorized and that all the representations and warranties contained in
      Section 6.01 are true and correct on and as of the relevant Increase Date
      is to be effective as though made on and as of such Increase Date,
provided that, for purposes of the foregoing, each date set forth in
      the last sentence of Section 6.01(e) shall be deemed to be December 31 of the
      year for which the Company shall most recently have delivered the annual audited
      financial statements referenced in Section 7.01(f)(ii).

    

    SECTION
      3.05.  Repayment of Advances and Evidence of
      Indebtedness.

    

    (a)  The
      Company shall repay to the Administrative Agent for the ratable account of
      the
      Banks on the Final Maturity Date the aggregate principal amount of the Advances
      then outstanding.

    

    (b)  Each
      Bank shall maintain in accordance with its usual practice an ac­count or
      accounts evidencing the indebtedness of the Company to such Bank resulting
      from
      each Advance 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 23
          -

      

       

    

    made
      by
      such Bank, including the amounts of principal and interest payable and paid
      to
      such Bank from time to time hereunder.  The Administrative Agent shall
      maintain accounts in which it shall record (i) the amount of each Advance
      made hereunder, the Type thereof and the Interest Period, if any, applicable
      thereto, (ii) the amount of any principal or interest due and payable or to
      become due and payable from the Company to each Bank hereunder and
      (iii) the amount of any sum received by the Administrative Agent hereunder
      for the account of the Banks and each Bank’s share thereof.  The
      entries made in the accounts maintained pursuant to this Section shall be
prima facie evidence of the existence and amounts of the obligations
      recorded therein; provided that the failure of any Bank or the
      Administrative Agent to maintain such accounts or any error therein shall not
      in
      any manner affect the obligation of the Company to repay the Advances in
      accordance with the terms of this Agreement.

    

    SECTION
      3.06.  Interest on Advances.  The
      Company shall pay interest on the unpaid principal amount of each Advance,
      from
      the date of such Advance until such principal amount shall be paid in full,
      at
      the following rates per annum:

    

    (a)  Base
      Rate Advances.  During such periods as such Advance is a Base Rate
      Advance, a rate per annum equal at all times to the Base Rate in effect from
      time to time, payable quarterly in arrears on the last day of each March, June,
      September and December and on the date such Base Rate Advance shall be Converted
      or paid in full.

    

    (b)  Eurodollar
      Rate Advances.  During such periods as such Advance is a
      Eurodollar Rate Advance, a rate per annum equal at all times during each
      Interest Period for such Advance to the sum of (x) the Eurodollar Rate for
      such
      Interest Period for such Advance plus (y) the Applicable Margin,
      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 Advance shall be Converted or paid in
      full.

    

    (c)  Default
      Interest.  Notwithstanding Sections 3.06(a) and 3.06(b), upon the
      occurrence and during the continuance of an Event of Default, the Company shall
      pay interest on the outstanding principal amount of each Advance, and on the
      unpaid amount of all interest, fees and other amounts payable by the Company
      hereunder, such interest to be paid 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
      (i) in the case of any amount of principal, 2% per annum above the rate per
      annum required to be paid pursuant to paragraph (a) or (b) above, as the
      case may be and (ii) in the case of all other amounts, 2% per annum above
      the Base Rate from time to time.

    

    SECTION
      3.07.  Interest Rate Determination.

    

    (a)  If
      the Eurodollar Rate does not appear on Reuters Page LIBOR01 (or any successor
      page), each Reference Bank agrees to furnish to the Administrative Agent timely
      information for the purpose of determining each Eurodollar Rate.  If
      the Eurodollar Rate does not appear on Reuters Page LIBOR01 (or any successor
      page), and if any one or more of the Reference Banks shall not furnish such
      timely information to the Administrative Agent for the purpose of determining
      any such interest rate, the Administrative Agent shall determine such interest
      rate on the basis of timely information furnished by the remaining Reference
      Banks.  The Administrative Agent shall give prompt notice to the
      Company and the Banks of the applicable interest rate determined by the
      Administrative Agent for purposes of Section 3.06(b), and the rate, if any,
      furnished by each Reference Bank for the purpose of determining the interest
      rate under Section 3.06(b).

    

    (b)  If,
      with respect to any Eurodollar Rate Advances, the Majority Banks notify the
      Administrative Agent that the Eurodollar Rate for any Interest Period for such
      Advances will not 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 24
          -

      

       

    

    adequately
      reflect the cost to such Majority Banks of making, funding or maintaining their
      respective Eurodollar Rate Advances for such Interest Period, the Administrative
      Agent shall forthwith so notify the Company and the Banks, whereupon
      (i) such Eurodollar Rate Advances will automatically, on the last day of
      the then existing Interest Period therefor, Convert into Base Rate Advances,
      and
      (ii) the obligation of the Banks to make, or to Convert Advances into,
      Eurodollar Rate Advances shall be suspended until the Administrative Agent
      shall
      notify the Company and the Banks that the circumstances causing such suspension
      no longer exist.

    

    (c)  If
      the Company shall fail to select the duration of any Interest Period for any
      Eurodollar Rate Advances in accordance with the provisions contained in the
      definition of “Interest Period” in Section 1.01, the Administrative Agent will
      forthwith so notify the Company and the Banks and the Company will be deemed
      to
      have selected an Interest Period of one month.

    

    (d)  If
      the aggregate unpaid principal amount of Eurodollar Rate Advances comprising
      any
      Borrowing shall be reduced, by payment or prepayment or otherwise, to less
      than
      $10,000,000, such Advances shall automatically Convert into Base Rate Advances
      on the last day of the Interest Period applicable thereto.

    

    (e)  If
      the Eurodollar Rate does not appear on Reuters Page LIBOR01 (or any successor
      page) and fewer than two Reference Banks furnish timely information to the
      Administrative Agent for determining the Eurodollar Rate for any Eurodollar
      Rate
      Advances,

    

    
      	
               

            	
              (i)

            	
              the
                Administrative Agent shall forthwith notify the Company and the Banks
                that
                the interest rate cannot be determined for such Eurodollar Rate
                Advances,

            

    

    

    
      	
               

            	
              (ii)

            	
              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 Banks to make, or to Convert Advances into, Eurodollar
                Rate Advances shall be suspended until the Administrative Agent shall
                notify the Com­pany and the Banks that the circumstances causing such
                suspension no longer exist.

            

    

    

    (f)  Notwithstanding
      any contrary provision of this Agreement, if an Event of Default has occurred
      and is continuing and the Administrative Agent, at the request of the Majority
      Banks, so notifies the Company, then, so long as such Event of Default is
      continuing (i) unless repaid, each Eurocurrency Rate Advance will
      automatically, on the final day of the then existing Interest Period therefor,
      Convert into a Base Rate Advance, and (ii) the obligation of the Banks to
      Convert Base Rate Advances into Eurocurrency Rate Advances shall be
      suspended.

    

    SECTION
      3.08.  Optional Conversion of Advances.  The
      Company may on any Business Day, upon notice given to the Administrative 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, Convert all Advances of one Type
      comprising the same Borrowing into Advances of the other Type or Continue
      Eurodollar Rate Advances (and in the absence of timely notice of Continuation,
      such Eurodollar Rate Advances shall Convert to Base Rate Advances on the last
      day of the then current Interest Period); provided 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, any Conversion
      of Base Rate Advances into Eurodollar Rate Advances shall be in an amount not
      less than the minimum amount specified in Section 3.02(b) and no Conversion
      of
      any Advances shall result in more separate Borrowings than permitted under
      Section 3.02(b).  Each such notice of a Conversion shall, within the
      restrictions specified above, specify (i) the date of such Conversion, (ii)
      the
      Advances to be Converted, and (iii) if such Conversion is into Eurodollar

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 25
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    Rate
      Advances, the duration of the initial Interest Period for such
      Advances.  Each notice of Conversion or Continuation shall be
      irrevocable and binding on the Company.

    

    SECTION
      3.09.  Optional Prepayments of Advances.  The
      Company may, upon same day notice not later than 11:00 a.m. (New York City
      time), in the case of Base Rate Advances, and upon not less than two Business
      Days’ notice, in the case of Euro­dollar Rate Advances, to the
      Administrative Agent stating the proposed date and aggregate principal amount
      of
      the prepayment, and if such notice is given the Company shall, prepay the
      outstanding principal amount of the Advances comprising part of the same
      Borrowing in whole or ratably in part, together with accrued interest to the
      date of such prepayment on the principal amount prepaid; provided 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, the Company
      shall
      be obligated to reimburse the Banks in respect thereof pursuant to Section
      10.04(c).

    

    SECTION
      3.10.  Use of Proceeds.  The
      proceeds of the Advances shall be available (and the Company agrees that such
      proceeds shall be used) for general corporate purposes of the Company and its
      Subsidiaries, including commercial paper backstop and including for the payment
      of LC Reimbursement Obligations.

     

    ARTICLE
      IV

    FEES;
      CERTAIN COMMON PROVISIONS

    
 

    SECTION
      4.01.  Fees.

    

    (a)  Commitment
      Fee.  The Company shall pay to the Administrative Agent for
      account of each Bank a commitment fee at the Applicable Commitment Fee Rate
      on
      the daily average unused amount of the Revolving Credit Commitment of such
      Bank
      during the period from the date of this Agreement until the last day of the
      Revolving Credit Availability Period, payable in arrears on each Quarterly
      Date
      and on the date of termination of the Revolving Credit Commitments.

    

    (b)  Letter
      of Credit Fees.  The Company shall pay (i) to the
      Administrative Agent for account of each Bank a letter of credit commission
      at a
      rate per annum equal to the Applicable Margin on the average daily aggregate
      undrawn amount of each Letter of Credit during the period from the date of
      issuance thereof until the date on which such Bank ceases to have any
      LC Exposure, and (ii) directly to each Issuing Bank a fronting fee, which
      shall accrue at the rate or rates per annum separately agreed upon between
      the
      Company and such Issuing Bank, on the average daily amount of the LC Exposure
      with respect to outstanding Fronted Letters of Credit (excluding any portion
      thereof attributable to unreimbursed LC Disbursements) during the period from
      and including the Effective Date to but excluding the later of termination
      of
      the Commitments and the date on which there ceases to be any LC Exposure, as
      well as such Issuing Bank’s standard fees with respect to the issuance,
      amendment, renewal or extension of any Fronted Letter of Credit or processing
      of
      drawings thereunder.  Letter of credit commission and fronting fees
      accrued through and including each Quarterly Date shall be payable on the third
      Business Day following such Quarterly Date, commencing on the first such date
      to
      occur after the Effective Date; provided that all such fees shall be
      payable on the date on which the Commitments terminate and any such fees
      accruing after the date on which the Commitments terminate shall be payable
      on
      demand.  Any other fees payable to an Issuing Bank pursuant to this
      paragraph shall be payable within 10 days after demand.  All
      participation fees and fronting fees shall be computed on the basis of a year
      of
      360 days and shall be payable for the actual number of days elapsed (including
      the first day but excluding the last day).

    

    (c)  Agent’s
      Fee.  The Company shall pay, on demand, to the Administrative
      Agent for its own account (i) all commissions, charges and expenses with respect
      to the issuance, amendment, 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
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    renewal
      and extension of any Letter of Credit and drawings and other transactions
      relating thereto in amounts customarily charged from time to time in like
      circumstances by the Person that is serving as Administrative Agent and (ii)
      all
      fees payable in the amounts and at the times separately agreed upon between
      the
      Company and the Administrative Agent with respect to the performance of its
      agency duties hereunder.

    

    (d)  Payment
      of Fees.  All commitment fees and letter of credit commissions
      payable hereunder shall be paid on the dates due, in immediately available
      funds, to the Administrative Agent for distribution, in the case of commitment
      fees and letter of credit commissions, to the Banks entitled
      thereto.  Fees paid hereunder shall not be refundable under any
      circumstances.

    

    SECTION
      4.02.  Increased Costs.

    

    (a)  If,
      due to either (i) the introduction of or any change in any law or regulation
      or
      in the interpretation or administration of any law or regulation by any
      governmental authority charged with the interpretation or administration thereof
      or (ii) the compliance with any guideline or request from any central bank
      or
      other governmental authority (whether or not having the force of law), there
      shall be any increase in the cost to any Bank of agreeing to make or making,
      funding or maintaining Eurodollar Rate Advances by an amount deemed by such
      Bank
      to be material, then the Company shall from time to time, upon demand by such
      Bank (with a copy of such demand to the Administrative Agent), pay to the
      Administrative Agent for the account of such Bank additional amounts sufficient
      to compensate such Bank for such increased cost.  A certificate as to
      the amount of such increased cost submitted to the Company and the
      Administrative Agent by such Bank shall be conclusive and binding for all
      purposes, absent manifest error.

    

    (b)  If
      any Bank determines that compliance with any law or regulation or any guideline
      or request from any central bank or other governmental authority (whether or
      not
      having the force of law) affects or would affect the amount of capital required
      or expected to be maintained by such Bank or any company controlling such Bank
      and that the amount of such capital is increased by or based upon the existence
      of such Bank’s Commitment or the Letters of Credit or the Advances, then, upon
      demand by such Bank (with a copy of such demand to the Administrative Agent),
      the Company shall immediately pay to the Administrative Agent for the account
      of
      such Bank, from time to time as specified by such Bank, additional amounts
      sufficient to compensate such Bank or such corporation in the light of such
      circumstances, to the extent that such Bank reasonably determines such increase
      in capital to be allocable to the existence thereof.  A certificate as
      to such amounts submitted to the Company and the Administrative Agent by such
      Bank shall be conclusive and binding for all purposes, absent manifest
      error.

    

    SECTION
      4.03.  Illegality.  Notwithstanding
      any other provision of this Agree­ment, if any Bank shall notify the
      Administrative 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 asserts that it is unlawful, for such
      Bank
      or its Eurodollar Lending Office to perform its obligations hereunder to make
      Eurodollar Rate Advances or to fund or maintain Eurodollar Rate Advances
      hereunder, (i) each Eurodollar Rate Advance of such Bank will automatically,
      upon such demand, Convert into a Base Rate Advance and (ii) the obligation
      of
      such Bank to make, or to Convert Advances into, Eurodollar Rate Advances shall
      be suspended until the Administrative Agent shall notify the Company and such
      Bank that the circumstances causing such suspension no longer exist and such
      Bank shall make the Base Rate Advances in the amount and on the dates that
      it
      would have been requested to make Eurodollar Rate Advances had no such
      suspension been in effect.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 27
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    SECTION
      4.04.  Payments and Computations.

    

    (a)  The
      Company shall make each payment required to be made by it hereunder (whether
      of
      principal of, or interest on, the Advances, fees, LC Reimbursement Obligations
      or otherwise) prior to 1:00 p.m. New York City time, on the day when due,
      in Dollars and immediately available funds, without set-off or
      counterclaim.  Any amounts received after such time on any date may,
      in the discretion of the Administrative Agent, be deemed to have been received
      on the next succeeding Business Day for purposes of calculating interest
      thereon.

    

    (b)  All
      such payments shall be made to the Administrative Agent at the Administrative
      Agent’s Account, except that payments pursuant to Section 10.04 shall be made
      directly to the Persons entitled thereto and except payments to be made directly
      to an Issuing Bank as expressly provided herein.  The Administrative
      Agent shall distribute any such payments received by it for account of any
      other
      Person to the appropriate recipient promptly following receipt
      thereof.

    

    (c)  If
      any payment hereunder shall be due on a day that is not a Business Day, the
      date
      for payment shall be extended to the next succeeding Business Day and, in the
      case of any payment accruing interest, interest thereon shall be payable for
      the
      period of such extension.

    

    (d)  Upon
      its acceptance of an Assignment and Assumption and recording of the information
      contained therein in the register maintained by the Administrative Agent
      pursuant to Section 9.06(b), from and after the effective date specified in
      such
      Assignment and Assumption, the Administrative Agent shall make all payments
      hereunder in respect of the interest assigned thereby to the Bank assignee
      thereunder, and the parties to such Assignment and Assumption shall make all
      appropriate adjustments in such payments for periods prior to such effective
      date directly between themselves.

    

    (e)  If
      at any time insufficient funds are received by and available to the
      Administrative Agent to pay fully all amounts then due hereunder, such funds
      shall be applied (i) first, to pay costs and expenses, if any, of the
      Administrative Agent required to be reimbursed hereunder, (ii) second, to pay
      interest and fees then due hereunder, ratably among the parties entitled thereto
      in accordance with the amounts of interest and fees then due to them, and
      (iii) third, to pay principal of Advances and unreimbursed LC Disbursements
      then due hereunder, ratably among the parties entitled thereto in accordance
      with the amounts of Advances and unreimbursed LC Disbursements, respectively,
      then due to them.

    

    (f)  All
      computations of interest based on the Base Rate shall be made by the
      Administrative 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 commitment fees, and of letter of credit commissions shall
      be
      made by the Administrative 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 commitment fees,
      or
      letter of credit commissions are payable.  Each determination by the
      Administrative Agent of an interest rate hereunder shall be conclusive and
      binding for all purposes, absent manifest error.

    

    (g)  Except
      to the extent otherwise provided herein (i) each payment of principal of
      Advances shall be for the pro rata account of the Banks in accordance
      with the amounts of the Advances made by them, (ii) each reimbursement of
      LC Disbursements shall be for the pro rata account of the Banks in
      accordance with the amounts of the LC Disbursements made by them, (iii) each
      payment of commitment fee and letter of credit commission shall be for the
      pro rata account of the Banks, and each increase or reduction of the
      Maximum Amount or reduction of the amount of the Commitments under
      Section 3.04(b) shall be applied pro rata to the respective
      obligations of the Banks, according to their respective Applicable Percentages;
      and (iv) each 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
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    payment
      of interest shall be made for the pro rata account of the Banks in
      accordance with the amounts of interest then due and payable to
      them.

    

    (h)  Unless
      the Administrative Agent shall have received notice from the Company prior
      to
      the date on which any payment is due to the Administrative Agent for account
      of
      the Banks hereunder that the Company will not make such payment, the
      Administrative Agent may assume that the Company made such payment on such
      date
      in accordance herewith and may, in reliance upon such assumption, distribute
      to
      the Banks the amount due.  In such event, if the Company has not in
      fact made such payment, then each of the Banks severally agrees to repay to
      the
      Administrative Agent forthwith on demand the amount so distributed to such
      Bank
      with interest thereon, for each day from the date such amount is distributed
      to
      it to the date of payment to the Administrative Agent, at the Federal Funds
      Rate.

    

    SECTION
      4.05.  Taxes.

    

    (a)  Any
      and all payments by the Company hereunder and under the Notes shall be made
      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 Bank, each Issuing Bank and
      the
      Administrative Agent, taxes imposed on its income, and franchise taxes imposed
      on it, by the jurisdiction under the laws of which such Bank, such Issuing Bank
      or the Administrative Agent (as the case may be) is organized or any political
      subdivision thereof and, in the case of each Bank and each Issuing Bank, taxes
      imposed on its income, and franchise taxes imposed on it, by the jurisdiction
      of
      such Bank’s or such Issuing Bank’s Applicable Lending Office or any political
      subdivision thereof (all such non-excluded taxes, levies, imposts, deductions,
      charges, withholdings and liabilities being hereinafter referred to as
“Taxes”).  If the Company shall be required by law to deduct
      any Taxes from or in respect of any sum payable hereunder or under the Notes
      to
      any Bank, any Issuing Bank or the Administrative Agent, (i) the sum payable
      shall be increased as may be necessary so that after making all required
      deductions (including deductions applicable to additional sums payable under
      this Section 4.05) such Bank, such Issuing Bank or the Administrative Agent
      (as
      the case may be) receives an amount equal to the sum it would have received
      had
      no such deductions been made, (ii) the Company shall make such deductions and
      (iii) the Company shall pay the full amount deducted to the relevant
      taxation authority or other authority in accordance with applicable
      law.

    

    (b)  In
      addition, the Company agrees to pay any present or future stamp or documentary
      taxes or any other excise or property taxes, charges or similar levies which
      arise from any payment made hereunder or from the execution, delivery or
      registration of, or otherwise with respect to, this Agreement and the Notes
      (hereinafter referred to as “Other Taxes”).

    

    (c)  The
      Company will indemnify each Bank, and the Administrative Agent for the full
      amount of Taxes or Other Taxes (including any Taxes and Other Taxes imposed
      by
      any jurisdiction on amounts payable under this Section 4.05) paid by such Bank,
      or the Administrative Agent (as the case may be) and any liability (including
      penalties, interest and expenses) arising therefrom or with respect thereto,
      whether or not such Taxes or Other Taxes were correctly or legally
      asserted.  This indemnification shall be made within 30 days from the
      date such Bank, or the Administrative Agent (as the case may be) makes written
      demand therefor.  A certificate as to the amount of such Taxes and
      Other Taxes, submitted to the Company and the Administrative Agent by such
      Bank
      shall be conclusive and binding (as between the Company, the Banks and the
      Administrative Agent) for all purposes, absent manifest
      error.  Nothing herein shall preclude the Company from contesting the
      applicability of any Taxes or Other Taxes as against any governmental entity,
      and each Bank and the Administrative Agent agree to cooperate in such manner
      as
      the Company may reasonably request in contesting any such Taxes or Other Taxes
      (provided that neither any Bank nor the Administrative Agent shall be
      required to so cooperate with the Company to the extent such Bank or the
      Administrative Agent believes (in its 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 29
          -

      

       

    

    sole
      discretion) that (i) such Taxes or Other Taxes have been correctly asserted
      or (ii) such cooperation would be disadvantageous to it in any
      way).

    

    (d)  Within
      30 days after the date of any payment of Taxes, the Company will furnish to
      the
      Administrative Agent, at its address referred to in Section 10.02, the
      original or a certified copy of a receipt evidencing payment thereof or other
      proof of payment of such Taxes reasonably satisfactory to the relevant
      Bank(s).  If no Taxes are payable in respect of any payment hereunder
      upon the request of the Administrative Agent the Company will furnish to the
      Administrative Agent, at such address, a statement to such effect with respect
      to each jurisdiction designated by the Administrative Agent.

    

    (e)  Each
      Bank 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 Bank) and on the date of the Assignment and Assumption pursuant
      to which it becomes a Bank (in the case of each other Bank), and from time
      to
      time thereafter if requested in writing by the Company (but only so long as
      such
      Bank remains lawfully able to do so), shall provide the Company with Internal
      Revenue Service form W-8ECI or W-8BEN, as appropriate, or any successor form
      prescribed by the Internal Revenue Service, certifying that such Bank is
      entitled to benefits under an income tax treaty to which the United States
      is a
      party which reduces the rate of withholding tax on payments of interest or
      certifying that the income receivable pursuant to this Agreement is effectively
      connected with the conduct of a trade or business in the United
      States.  If the form provided by a Bank at the time such Bank 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” as defined in Section 4.05(a).

    

    (f)  For
      any period with respect to which a Bank has failed to provide the Company with
      the appropriate form described in Section 4.05(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 Bank shall
      not be entitled to indemnification under Section 4.05(a) with respect to Taxes
      imposed by the United States; provided that should a Bank become
      subject to Taxes because of its failure to deliver a form required hereunder,
      the Company shall take such steps as the Bank shall reasonably request to assist
      the Bank to recover such Taxes.

    

    (g)  Any
      Bank claiming any additional amounts payable pursuant to this Section 4.05
      shall use reasonable efforts (consistent with its internal policy and legal
      and
      regulatory restrictions) to change the jurisdiction of its Applicable Lending
      Office(s) if the making of such a change would avoid the need for, or reduce
      the
      amount of, any such additional amounts that may thereafter accrue and would
      not,
      in the reasonable judgment of such Bank, be otherwise disadvantageous to such
      Bank.

     

    ARTICLE
      V

    EFFECTIVE
      DATE; CONDITIONS PRECEDENT

     

    

    SECTION
      5.01.  Effective Date.  The
      amendment and restatement of the Existing Agreement provided for herein shall
      become effective on the date (the “Effective Date”) on which the
      Administrative Agent notifies the Company that it has received, on or prior
      to
      June 19, 2007, the following documents, each dated (except as otherwise provided
      below) the Effective Date, in form and substance satisfactory to the
      Administrative Agent and in sufficient copies for each Bank:

    

    (a)  Certified
      copies of (x) the charter and by-laws of the Company, (y) the resolutions
      of the Board of Directors of the Company authorizing and approving this
      Agreement and the Notes, and (z) documents evidencing all other necessary
      corporate action and governmental approvals, if any, with respect to the
      Company’s making and performance of this Agreement.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 30
          -

      

       

    

    (b)  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 and the other documents to be delivered
      hereunder.

    

    (c)  A
      certificate from the Secretary of State of the State of Delaware dated a date
      reasonably close to the Effective Date as to the good standing of and charter
      documents filed by the Company.

    

    (d)  A
      favorable opinion of Deborah Young, Counsel of the Company, in substantially
      the
      form of Exhibit E.

    

    (e)  A
      favorable opinion of Milbank, Tweed, Hadley & McCloy LLP, special New York
      counsel to the Administrative Agent, in substantially the form of Exhibit
      F.

    

    (f)  A
      certificate of a Responsible Officer of the Company certifying that (i) no
      Default or Event of Default as of the date thereof has occurred and is
      continuing, and (ii) the representations and warranties contained in
      Section 6.01 are true and correct on and as of the date thereof as if made
      on and as of such date.

    

    (g)  Evidence
      of payment of all fees and other amounts due and payable under or in connection
      with the Existing Agreement or this Agreement on or prior to the Effective
      Date,
      including payment in full of all fees and other amounts owing to each “Bank” as
      defined in the Existing Agreement that is not a Bank hereunder (each a
“Declining Bank”), and including, to the extent invoiced, reimbursement
      or payment of all out-of-pocket expenses required to be reimbursed or paid
      by
      the Company hereunder.

    

    (h)  Such
      other approvals, opinions and documents relating to this Agreement and the
      transactions contemplated hereby as the Administrative Agent or any Bank,
      through the Administrative Agent, may reasonably request.

    

    The
      Administrative Agent will promptly
      notify the Banks of the occurrence of the Effective Date.  Effective
      on the Effective Date each Declining Bank shall cease to be a party hereto
      and
      to have any rights or obligations hereunder.

    

    SECTION
      5.02.  Conditions Precedent to Each Extension of Credit and Each
      Amendment of each Letter of Credit.  The
      obligation of (i) each Bank (a) to participate in the issuance of any
      Multi-Bank Letter of Credit, (b) to make an Advance on the occasion of each
      Borrowing, and (c) to amend any Letter of Credit to increase the Maximum
      Amount thereof pursuant to Section 2.01 and (ii) each Issuing Bank to
      issue any Fronted Letter of Credit shall be subject to the conditions precedent
      that the Effective Date shall have occurred on or prior to June 19, 2007 and
      on
      the date of such issuance, such Borrowing or such increase the following
      statements shall be true (and each of the giving of the applicable Notice of
      Issuance, Notice of Borrowing or Notice of Increase and the acceptance by the
      Company of the proceeds of such Borrowing shall constitute a representation
      and
      warranty by the Company that on the date of such issuance, Borrowing or
      increase, as the case may be, such statements are true):

    

    (a)  the
      representations and warranties contained in Section 6.01 (other than the last
      sentence of Section 6.01(e) and other than Section 6.01(f)) shall be true and
      correct in all material respects on and as of the date of such issuance,
      Borrowing or increase, before and after giving effect thereto and, in the case
      of a Borrowing, to the application of the proceeds thereof, as though made
      on
      and as of such date,

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 31
          -

      

       

    

    (b)  no
      Default or Event of Default shall have occurred and be continuing, or would
      result from such issuance, Borrowing or increase or, in the case of a Borrowing,
      from the application of the proceeds thereof, and

    

    (c)  the
      Administrative Agent shall have received the relevant Notice of Issuance or
      Notice of Increase in accordance with Section 2.01(e), or the relevant Notice
      of
      Borrowing in accordance with Section 3.02(a).

     

    ARTICLE
      VI

    REPRESENTATIONS
      AND WARRANTIES

     

    

    SECTION
      6.01.  Representations and Warranties of the
      Company.  The
      Company represents and warrants to the Banks and the Administrative Agent as
      follows:

    

    (a)  The
      Company (i) is a corporation duly organized, validly existing and in good
      standing under the laws of the State of Delaware, (ii) is duly qualified and
      in
      good standing as a foreign corporation 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 where, in each case, failure so to qualify and
      be
      in good standing could have a Material Adverse Effect and (iii) has all
      requisite corporate power and authority to own or lease and operate its property
      and to carry on its business as now conducted and as proposed to be
      conducted.

    

    (b)  The
      execution, delivery and performance by the Company of this Agreement and the
      Notes are within the Company’s corporate powers, have been duly authorized by
      all necessary corporate action, and do not (i) contravene the Company’s
      charter or by-laws, (ii) contravene any contractual restriction binding on
      the
      Company or (iii) violate any law, rule or regulation (including the
      Securities Act of 1933 and the Exchange Act and the regulations thereunder
      and
      Regulations U and X issued by the Board of Governors of the Federal Reserve
      System, each as from time to time amended), or order, writ, judgment,
      injunction, decree, determination or award.

    

    (c)  No
      authorization or approval or other action by, and no notice to or filing with,
      any governmental authority or regulatory body is required for the due execution,
      delivery and performance by the Company of this Agreement and the
      Notes.

    

    (d)  This
      Agreement is, and each Note when duly executed and delivered for value will
      be,
      the legal, valid and binding obligation of the Company, enforceable against
      the
      Company in accordance with its terms.

    

    (e)  The
      Company has heretofore furnished to each of the Banks (i) the consolidated
      balance sheet of the Company and its Subsidiaries as at December 31, 2006,
      and the related consolidated statements of income and retained earnings of
      the
      Company and its Consolidated Subsidiaries for the fiscal year then ended, with
      the opinion thereon of PricewaterhouseCoopers, LLP and (ii) the unaudited
      consolidated balance sheet of the Company and its Subsidiaries as at
      March 31, 2007 and the related statements of consolidated income and
      retained earnings of the Company and its Consolidated Subsidiaries for the
      three-month period ended on said date.  All such financial statements
      fairly present the consolidated financial condition of the Company and its
      Consolidated Subsidiaries as at such dates and the results of the operations
      of
      the Company and its Consolidated Subsidiaries for the fiscal year and
      three-month period ended on such dates (subject, in the case of such financial
      statements as at March 31, 2007, to normal year-end audit adjustments), all
      in accordance with generally accepted accounting principles consistently
      applied.  Since December 31, 2006, no Material Adverse Change has
      occurred, except as may have been disclosed in the Company’s form 10-K
      filed with the Securities and Exchange Commission for the period ending
      December 31, 2006 and the Company’s Form 8-K filed with the Securities and
      Exchange Commission on May 30, 2007.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 32
          -

      

       

    

    (f)  Except
      for the Disclosed Litigation, there is no pending or threatened action or
      proceeding affecting the Company or any of its Material Subsidiaries before
      any
      court, governmental agency or arbitrator which (i) is reasonably likely to
      have
      a Material Adverse Effect or (ii) purports to affect this Agreement or the
      transactions contemplated hereby; and since the date of this Agreement there
      has
      been no adverse change in the status, or financial effect on the Company or
      any
      of its Subsidiaries, with respect to the Disclosed Litigation.

    

    (g)  The
      Company is not engaged in the business of extending credit for the purpose
      of
      buying or carrying Margin Stock, and no part of the proceeds of any Advance
      or
      other extension of credit hereunder will be used, directly or indirectly, for
      the purpose, whether immediate, incidental or ultimate, of buying or carrying
      any Margin Stock.

    

    (h)  The
      Company is not an “investment company”, or a Person “controlled by” an
“investment company”, as such terms are defined in the Investment Company Act of
      1940, as amended.

    

    (i)  All
      information that has been made available by the Company or any of its
      representatives to the Administrative Agent or any Bank in connection with
      the
      negotiation of this Agreement was, on or as of the dates on which such
      information was made available, complete and correct in all material respects
      and did not contain any untrue statement of a material fact or omit to state
      a
      fact necessary to make the statements contained therein not misleading in light
      of the time and circumstances under which such statements were
      made.  All financial projections that have been prepared by the
      Company and made available to the Administrative Agent or any Bank in connection
      with the negotiation of this Agreement have been prepared in good faith based
      upon reasonable assumptions (it being understood that such projections are
      subject to significant uncertainties and contingencies, many of which are beyond
      the Company’s control, and that no assurance can be given that such projections
      will be realized).

    

    (j)  The
      Company is Solvent.

    

    (k)  Without
      limiting the foregoing paragraphs (a) through (j), the Company and each of
      its Subsidiaries is in compliance with all laws, statutes, rules, regulations
      and orders binding on or applicable to the Company, its Subsidiaries and all
      of
      their respective properties, except to the extent failure to so comply could
      not
      (either individually or in the aggregate) reasonably be expected to have a
      Material Adverse Effect.

     

    ARTICLE
      VII

    COVENANTS
      OF THE COMPANY

    
 

    SECTION
      7.01.  Affirmative Covenants.  So
      long as any Advance shall remain unpaid or any Bank shall have any LC Exposure
      or Revolving Credit Exposure hereunder, and until payment in full of all other
      amounts payable by the Company hereunder, the Company covenants and agrees
      that,
      unless the Majority Banks shall otherwise consent in writing:

    

    (a)  Corporate
      Existence, Compliance with Laws, Etc.  The Company will, and will
      cause each Material Subsidiary to, maintain its corporate existence
      (provided that nothing in this sentence shall prohibit any transaction
      expressly permitted under Section 7.02(c)), and will comply, and will cause
      each Material Subsidiary to comply, with all applicable laws, statutes, rules,
      regulations and orders, such compliance to include compliance with ERISA and
      applicable environmental laws and regulations, except for any non-compliance
      which could not (either individually or in the aggregate) reasonably be expected
      to have a Material Adverse Effect.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 33
          -

      

       

    

    (b)  Payment
      of Taxes and other Obligations.  The Company will, and will cause
      each of its Material Subsidiaries to, pay and discharge at or before maturity
      all of their respective material obligations and liabilities (including claims
      of materialmen, warehousemen and the like which if unpaid might by law give
      rise
      to a Lien) and pay and discharge all taxes, assessments and governmental charges
      or levies imposed on it or on its income or profits or on any of its property
      prior to the date on which penalties attach thereto, except for any such tax,
      assessment, charge or levy the payment of which is being contested in good
      faith
      and by proper proceedings and against which adequate reserves are being
      maintained in accordance with generally accepted accounting principles or where
      the failure to pay or discharge such tax, assessment, charge or levy could
      not
      reasonably be expected to have a Material Adverse Effect.

    

    (c)  Maintenance
      and Inspection of Books and Records.  The Company will, and will
      cause each of its Material Subsidiaries to, (i) maintain appropriate books
      and
      records in which full, true and correct entries shall be made of all dealings
      and transactions in relation to its business and activities and (ii) permit
      representatives of any Bank or the Administrative Agent, during normal business
      hours and as often as may be desired at their own cost and expense
      (provided that if a Default has occurred and is continuing the Company
      shall indemnify each Bank and the Administrative Agent for such costs and
      expenses that are reasonable and, where possible, documented) to examine, copy
      and make extracts from its books and records, and to discuss its business and
      affairs with its officers.

    

    (d)  Maintenance
      of Property; Insurance.  The Company will, and will cause each of
      its Material Subsidiaries to, (i) maintain all of its property useful and
      necessary in the business conducted by the Company and its Material Subsidiaries
      in good working order and condition, ordinary wear and tear excepted, except
      where failure to do so would not reasonably be expected to have a Material
      Adverse Effect, and (ii) maintain insurance with creditworthy insurance
      companies, or self-insure, against such risks and in such amounts as are usually
      maintained or insured against by other companies of established repute engaged
      in the same or a similar business; and will furnish to the Banks, upon request
      from the Administrative Agent, information presented in reasonable detail as
      to
      the insurance so maintained.

    

    (e)  Ranking.  The
      Company will promptly take all actions as may be necessary to ensure that the
      payment obligations of the Company under this Agreement and the Notes will
      at
      all times constitute unconditional and unsubordinated general obligations of
      the
      Company ranking at least paripassu in priority of payment with all
      other present and future unsecured and unsubordinated Indebtedness of the
      Company.

    

    (f)  Reporting
      Requirements.  The Company will furnish to the Banks:

    

    
      	
               

            	
              (i)

            	
              as
                soon as available and in any event within five Business Days after
                the
                date on which the Company is required to file the quarterly report
                of the
                Company for each of the first three fiscal quarters of each fiscal
                year on
                Form 10-Q with the Securities and Exchange Commission (without giving
                effect to any extension of such due date), the quarterly report of
                the
                Company for such fiscal quarter on Form 10-Q filed with the Securities
                and
                Exchange Commission;

            

    

    

    
      	
               

            	
              (ii)

            	
              as
                soon as available and in any event within five Business Days after
                the
                date on which the Company is required to file the annual report of
                the
                Company for each fiscal year on Form 10-K filed with the Securities
                and Exchange Commission (without giving effect to any extension of
                such
                due date), the annual report of the Company for such fiscal year
                on Form
                10-K filed with the Securities and Exchange
                Commission;

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 34
          -

      

       

    

    
      	
               

            	
              (iii)

            	
              as
                soon as possible and in any event within five days after the occurrence
                of
                any Default or any Event of Default continuing on the date of such
                statement, a statement of a Responsible Officer of the Company setting
                forth details of such Default or Event of Default and the action
                which the
                Company has taken and proposes to take with respect
                thereto;

            

    

    

    
      	
               

            	
              (iv)

            	
              contemporaneously
                with the delivery of the financial statements pro­vided for in
                clauses (i) and (ii) above, a duly completed certifi­cate, signed
                by the chief accounting officer or chief financial officer or assistant
                treasurer or treasurer or controller of the Company setting forth
                in
                reasonable detail the data and computations necessary to demonstrate
                com­pliance with the ratio contained in Section 7.02(d)
                hereof;

            

    

    

    
      	
               

            	
              (v)

            	
              promptly
                after the filing thereof, copies of each Form 8-K that the Company
                files
                with the Securities and Exchange Commission, or notice of the filing
                thereof with an electronic link thereto;
                and

            

    

    

    
      	
               

            	
              (vi)

            	
              promptly
                from time to time such other information respecting the condition
                (financial or otherwise) or operations of the Company or any of its
                Material Subsidiaries as any Bank through the Administrative Agent
                may
                from time to time reasonably request (provided that the Company
                shall not be obligated to furnish to any Bank any information pursuant
                to
                this clause (vi) that the Company reasonably believes to be material
                non-public information).

            

    

    

    (g)  Change
      in Nature of Business.  The Company will remain primarily an
      insurance and health care holding company.

    

    (h)  VADBe
      Hedge.  The Company will cause Connecticut General to maintain the
      VADBe Hedge in effect such that the expected economic exposure over time to
      stock market fluctuations is immaterial to the Company’s financial
      condition.  It is recognized by the Banks that the VADBe Hedge does
      not address any risks associated with the variable annuity death benefit
      reinsurance contracts other than those for which the VADBe Hedge was initially
      implemented.  Unhedged risks include mortality, lapse, statutory
      reserving, volatility, and partial surrenders.

    

    SECTION
      7.02.  Negative Covenants.  So
      long as any Advance shall remain unpaid or any Bank shall have any LC Exposure
      or Revolving Credit Exposure hereunder, and until payment in full of all other
      amounts payable by the Company hereunder, the Company covenants and agrees
      that,
      without the written consent of the Majority Banks:

    

    (a)  Liens.  The
      Company will not, and will not permit any of its Material Subsidiaries to,
      at
      any time create, assume or suffer to exist any Lien upon or with respect to
      any
      of the capital stock of any of its Material Subsidiaries.

    

    (b)  Material
      Subsidiary Stock.  The Company will not, and will not permit any
      of its Material Subsidiaries to, convey, transfer or otherwise dispose of
      (whether by or pursuant to merger, consolidation or any other arrangement)
      any
      capital stock of any of its Material Subsidiaries (other than to the Company
      or
      to a Wholly Owned Subsidiary of the Company); provided that nothing in
      this Section 7.02(b) shall prohibit any transaction expressly permitted under
      Section 7.02(c).

    

    (c)  Mergers,
      Etc.  The Company will not, and will not permit any Material
      Subsidiary to, 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 the property (whether now 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
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    owned
      or
      hereafter acquired) of the Company or such Material Subsidiary to, any Person,
      except that:

    

    
      	
               

            	
              (i)

            	
              any
                such Material Subsidiary may merge or consolidate with or into (or
                convey,
                transfer, lease or otherwise dispose of any or all the assets of
                such
                Material Subsidiary to) the Company or any Wholly Owned Subsidiary
                of the
                Company;

            

    

    

    
      	
               

            	
              (ii)

            	
              the
                Company or any such Material Subsidiary may convey, transfer or otherwise
                dispose of all or substantially all of the capital stock or property
                of a
                Material Subsidiary to another Person for a consideration consisting
                of
                cash or other Property that, in the good faith determination of the
                Company’s Board of Directors, is at least equal to the fair value of the
                capital stock or property (as the case may be) so conveyed, transferred
                or
                otherwise disposed of; and

            

    

    

    
      	
               

            	
              (iii)

            	
              the
                Company may merge or consolidate with or into any other Person so
                long as
                (x) immediately after giving effect to such transaction, no Event
                of
                Default would exist and (y) the Company is the surviving
                corporation.

            

    

    

    (d)  Leverage
      Ratio.  The Company will not permit the Leverage Ratio to be at
      any time greater than 0.400 to 1.00.

     

    ARTICLE
      VIII

    EVENTS
      OF
      DEFAULT

    

    

    SECTION
      8.01.  Events of Default.  If
      any of the following events (each an “Event of Default”) shall occur and
      be continuing:

    

    (a)  The
      Company shall fail to pay in full when due any principal of any Advance or
      any
      LC Reimbursement Obligation; or the Company shall fail to pay any interest
      on
      any Advance or LC Reimbursement Obligation, or any commitment fee or letter
      of
      credit commission, when due and such failure remains unremedied for three
      Business Days; or the Company shall fail to pay any other amount payable
      hereunder when due and such failure remains unremedied for three Business Days
      after notice thereof shall have been given to the Company by the Administrative
      Agent or any Bank (through the Administrative Agent); or

    

    (b)  Any
      representation or warranty made by the Company herein or by the Company (or
      any
      of its officers) in connection with this Agreement shall prove to have been
      incorrect in any material respect when made; or

    

    (c)  (i)
      The Company shall fail to perform or observe any term, covenant or agreement
      contained in Section 7.01(c)(ii), 7.01(f)(iii), 7.01(g) or 7.02; or (ii)
      the Company shall fail to perform or observe any other term or covenant of
      this
      Agreement on its part to be performed or observed, and such failure remains
      unremedied for 30 days after notice thereof shall have been given to the Company
      by the Administrative Agent or any Bank (through the Administrative Agent);
      or

    

    (d)  The
      Company or any Material Subsidiary shall fail to pay any principal of any other
      Debt of the Company or such Material Subsidiary which is outstanding in a
      principal amount of at least $75,000,000 (or its equivalent in other currencies)
      in the aggregate when the same becomes due and payable (whether at scheduled
      maturity, by required prepayment, acceleration, demand or otherwise); 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, or to permit the acceleration
      of,
      the maturity of such Debt; or any such Debt shall be 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
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    declared
      to be due and payable, or required to be prepaid (other than by a regularly
      scheduled required prepayment), redeemed, 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; or

    

    (e)  The
      Company 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 the Company 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 the Company
      or any of its Material Subsidiaries, such proceeding shall remain undismissed
      or
      unstayed for a period of 60 days; or the Company 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

    

    (f)  In
      connection with the actual or alleged insolvency of any Material Insurance
      Subsidiary of the Company, any Insurance Regulatory Authority shall appoint
      a
      rehabilitator, receiver, custodian, trustee, conservator or liquidator or the
      like (collectively, a “conservator”) for such Material Insurance
      Subsidiary, or cause possession of all or any substantial portion of the
      property of such Material Insurance Subsidiary to be taken by any conservator
      (or any Insurance Regulatory Authority shall commence any action to effect
      any
      of the foregoing); or

    

    (g)  One
      or more judgments in an aggregate amount in excess of $50,000,000 shall be
      rendered against the Company or any of its Material Subsidiaries and either
      (i) enforcement proceedings shall have been commenced by any creditor upon
      any such judgment or order and such proceedings shall not have been stayed
      or
      (ii) there shall be any period of 60 consecutive days during which a stay of
      enforcement of any such judgment or order, by reason of a pending appeal or
      otherwise, shall not be in effect; or

    

    (h)  A
      Change in Control shall occur; or

    

    (i)  the
      Company or any Material Subsidiary shall fail to pay when due an amount or
      amounts aggregating in excess of $25,000,000 which it shall have become liable
      to pay under Title IV of ERISA;

    

    THEN,
      and
      in every such event, and at any time thereafter during the continuance of such
      event, the Administrative Agent shall, if requested by the Majority Banks,
      by
      notice to the Company take any or all of the following actions, at the same
      or
      different times:  (i) terminate the Commitments, whereupon they
      shall forthwith terminate (without prejudice to the obligations of any Bank
      (including any Issuing Bank) under any Letter of Credit as then in effect),
      (ii) demand provision of cover from the Company in an amount equal to the
      then aggregate amount of LC Exposure of the Banks, whereupon the Company shall
      forthwith pay such amount in Dollars and immediately available funds to the
      Collateral Account and (iii) declare that the Advances, all interest
      thereon, all fees, commissions and other obligations of the Company accrued
      hereunder to be forthwith due and payable immediately, whereupon they shall
      forthwith become due and payable without presentment, demand, protest or other
      notice of any kind, all of which are hereby waived by each Company,
provided that in the case of any of the Events of Default specified in
      clause (e) or (f) above, without any notice to the Company or any other act
      by the Administrative Agent or the Banks, the Commitments shall thereupon
      terminate (without prejudice to the obligations of the Banks under any Letters
      of Credit as then in effect), and the Advances, all such interest and all such
      fees, commissions and other obligations of the Company accrued hereunder,
      including the obligation to provide cover as aforesaid, shall automatically
      become due and payable without presentment, demand, protest or 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
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          -

      

       

    

    notice
      of
      any kind, all of which are hereby waived by each Company.

     

    ARTICLE
      IX

    THE
      ADMINISTRATIVE AGENT

    

    

    SECTION
      9.01.  Authorization and Action.  Each
      Bank hereby appoints and authorizes the Administrative Agent to take such action
      as administrative agent on its behalf and to exercise such powers under this
      Agreement as are delegated to the Administrative Agent by the terms hereof,
      together with such powers as are reasonably incidental thereto.  As to
      any matters not expressly provided for by this Agreement, the Administrative
      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
      Banks, and such instructions shall be binding upon all Banks; provided
      that the Administrative Agent shall not be required to take any action which
      exposes the Administrative Agent to personal liability or which is contrary
      to
      this Agreement or applicable law.

    

    SECTION
      9.02.  Administrative Agent’s Reliance, Etc.  Neither
      the Administrative Agent nor any of its directors, officers, agents or employees
      shall be liable to the Banks 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 Administrative Agent:  (i) may
      consult with legal counsel (including counsel for the Company), independent
      public accountants and other experts selected by it and shall not be liable
      to
      the Banks 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; (ii) makes
      no warranty or representation to any Bank and shall not be responsible to any
      Bank for any statements, warranties or representations (whether written or
      oral)
      made in or in connection with this Agreement; (iii) 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 the Company or to
      inspect the property (including the books and records) of the Company or any
      of
      its Subsidiaries; (iv) shall not be responsible to any Bank for the due
      execution (other than its own), legality, validity, enforceability, genuineness,
      sufficiency or value of this Agreement or any related agreement, instrument
      or
      document furnished pursuant hereto; and (v) shall incur no liability to the
      Banks under or in respect of this Agreement by acting upon any notice, consent,
      certificate or other instrument or writing (which may be by telecopier,
      telegram, cable or telex) reasonably believed by it to be genuine and signed
      or
      sent by the proper party or parties.

    

    SECTION
      9.03.  Citibank and Affiliates.  With
      respect to its Commitments Citibank shall have the same rights and powers under
      this Agreement as any other Bank and may exercise the same as though it were
      not
      the Administrative Agent, and the term “Bank” or “Banks” 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, 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 Administrative Agent and without any duty to account
      therefor to the Banks.

    

    SECTION
      9.04.  Bank Credit Decision.  Each
      Bank acknowledges that it has, independently and without reliance upon the
      Administrative Agent or any other Bank and based on the financial statements
      referred to in Section 6.01 and such other documents and information as it
      has
      deemed appropriate, made its own credit analysis and decision to enter into
      this
      Agreement.  Each Bank also acknowledges that it will, independently
      and without reliance upon the Administrative Agent or any other Bank 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
      9.05.  Indemnification.  The
      Banks agree to indemnify the Administrative Agent (to the extent not reimbursed
      by the Company), ratably according to the respective amounts of their

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        - 38
          -

      

       

    

    Commitments
      as most recently in effect, from and against any and all liabilities,
      obligations, losses, damages, penalties, actions, judgments, suits, costs,
      expenses or disbursements of any kind or nature whatsoever which may be imposed
      on, incurred by, or asserted against the Administrative Agent in any way
      relating to or arising out of this Agreement or any action taken or omitted
      by
      the Administrative Agent under this Agreement, provided that no Bank
      shall be liable for any portion of such liabilities, obligations, losses,
      damages, penalties, actions, judgments, suits, costs, expenses or disbursements
      resulting from the Administrative Agent’s gross negligence or willful
      misconduct.  Without limiting the foregoing, each Bank agrees to
      reimburse the Administrative Agent promptly upon demand for its ratable share
      of
      any out-of-pocket expenses (including counsel fees) incurred by the
      Administrative 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
      Administrative Agent is not reimbursed for such expenses by the
      Company.

    

    SECTION
      9.06.  Successor Administrative Agent.  The
      Administrative Agent may resign at any time by giving written notice thereof
      to
      the Banks and the Company and may be removed at any time with or without cause
      by the Majority Banks.  Upon any such resignation or removal, the
      Majority Banks shall have the right to appoint a successor Administrative Agent
      that, unless a Default or Event of Default shall have occurred and then be
      continuing, is reasonably acceptable to the Company.  If no successor
      Administrative Agent shall have been so appointed by the Majority Banks, and
      shall have accepted such appointment, within 30 days after the retiring
      Administrative Agent’s giving of notice of resignation or the Majority Banks’
removal of the retiring Administrative Agent, then the retiring Administrative
      Agent may, on behalf of the Banks, appoint a successor Administrative Agent,
      which shall be a commercial bank organized under the laws of the United States
      of America or of any State thereof and having total assets of at least
      $1,000,000,000.  Upon the acceptance of any appointment as
      Administrative Agent hereunder by a successor Administrative Agent, such
      successor Administrative Agent shall thereupon succeed to and become vested
      with
      all the rights, powers, privileges and duties of the retiring Administrative
      Agent, and the retiring Administrative Agent shall be discharged from its duties
      and obligations under this Agreement.  After any retiring
      Administrative Agent’s resignation or removal hereunder as Administrative Agent,
      the provisions of this Article VII shall inure to its benefit as to any actions
      taken or omitted to be taken by it while it was Administrative Agent under
      this
      Agreement.

    

    SECTION
      9.07.  Joint Lead Arrangers.  Anything
      herein to the contrary notwithstanding, none of the book managers, arrangers,
      syndication agents or documentation agents listed on the cover page hereof
      shall
      have any powers, duties or responsibilities under this Agreement, except in
      their capacities, as applicable, as the Administrative Agent, a Bank or an
      Issuing Bank hereunder.

    

    SECTION
      9.08.  Trust Indenture Act.  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, 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 Letter of Credit by
      or
      on behalf of Citibank in its capacity as the Administrative Agent for the
      benefit of the Company hereunder or any Letter of Credit (other than Citibank
      or
      an Affiliate of Citibank) and which is applied in accordance herewith shall
      be
      deemed to be exempt from the requirements of Section 311 of said Act pursuant
      to
      Section 311(b)(3) thereof.

     

    ARTICLE
      X

    MISCELLANEOUS

    

    

    SECTION
      10.01.  Amendments, Etc.  No
      amendment or waiver of any provision of this Agreement, nor consent to any
      departure by the Company therefrom, shall in any event be effective unless
      the
      same shall be in writing and signed by the Majority Banks and (in the case
      of an
      amendment) the Company, and then such waiver or consent shall be effective
      only
      in the specific instance and for the specific purpose for which given;
provided that except as otherwise expressly provided in this Agreement,

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      - 39
        -

       

    

    no
      amendment, waiver or consent shall, unless in writing and signed by all the
      Banks, do any of the following:  (a) waive any of the conditions
      specified in Section 5.01, (b) increase the Commitment of any Bank,
      increase the LC Exposure of any Bank or otherwise subject any Bank to any
      additional obligations, (c) reduce the amount of, or interest on, any LC
      Reimbursement Obligation of the Company to any Bank or the principal of, or
      rate
      of interest on, any Advance or any fees, commissions or other amounts payable
      by
      the Company hereunder, (d) postpone the scheduled date for any payment of
      any LC Reimbursement Obligation (or interest thereon) or any principal of,
      or
      interest on, the Advances or any fees, commissions or other amounts payable
      by
      the Company hereunder, or change the Outside Expiry Date, (e) alter the
      manner in which payment of LC Reimbursement Obligations or interest thereon
      or
      of principal of, or interest on, the Advances or any fees, commissions or other
      amounts is to be applied as among the Banks, (f) change the definition of
“Majority Banks” or the number or percentage in interest of Banks which shall be
      required for the Banks or any of them to take any action hereunder,
      (g) amend this Section 10.01, (h) release any cover (except as
      expressly provided in this Agreement) or (i) increase the LC Sublimit; and
providedfurther that no amendment, waiver or consent shall,
      unless in writing and signed by the Administrative Agent or the Issuing Banks
      in
      addition to the Banks required above to take such action, affect the rights
      or
      duties of the Administrative Agent or the Issuing Banks, as the case may be,
      under this Agreement and the Notes.  This Agreement and the Notes
      constitute the entire agreement of the parties with respect to the subject
      matter hereof.

    

    SECTION
      10.02.  Notices, Etc.

    

    (a)  All
      notices and other communications provided for hereunder shall be in writing
      (including telecopier) and mailed, telecopied or delivered by hand:

    

    (i)           if
      to the Company:

    

    CIGNA
      Corporation

    Two
      Liberty Place

    1601
      Chestnut Street

    Philadelphia,
      Pennsylvania  19192

    

    Attention:  Treasurer

    

    Telephone
      No.:   215-761-2814

    Telecopier
      No.:  215-761-5516

    

    (ii)           if
      to the Administrative Agent:

    

    CITIBANK,
      N.A.,

    as
      Administrative Agent

    

    

    Address
      for Notices:

    

    Two
      Penns
      Way, Suite 200

    New
      Castle, DE 19720

    

    Attention:  Annemarie
      Pavco

    Telephone:  302-894-6010

    Telecopier:  212-994-0961

    e-mail:  annemarie.e.pavco@citi.com

    

    
      	
               

            	
              (iii)

            	
              if
                to any Bank, at its address (or telecopier number) set forth in its
                Administrative Questionnaire;

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      -
        40 -

       

    

    or,
      as to
      the Company or the Administrative 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 Administrative Agent.  All
      such notices and communications shall be deemed to have been duly given or
      made
      (A) in the case of hand deliveries, when delivered by hand, (B) in the
      case of mailed notices, upon receipt if sent by certified mail, postage prepaid,
      and (C) in the case of telecopier or electronic notice, when transmitted
      and confirmed during normal business hours (or, if delivered after the close
      of
      normal business hours, at the beginning of business hours on the next Business
      Day), except that notices and communications to the Administrative Agent
      pursuant to Article II, III or V shall not be effective until received by
      the Administrative Agent.

    

    (b)  The
      Company hereby agrees that it will provide to the Administrative Agent all
      information, documents and other materials that it is obligated to furnish
      to
      the Administrative Agent pursuant to this Agreement, including all notices,
      requests, financial statements, financial and other reports, certificates and
      other information materials, but excluding any such communication that (i)
      relates to the payment of any LC Reimbursement Obligation or any principal
      of
      any Advance or other amount due under this Agreement prior to the scheduled
      date
      therefor, (ii) provides notice of any Default or Event of Default under this
      Agreement or (iii) is required to be delivered to satisfy any condition
      precedent to the occurrence of the Closing Date and/or any borrowing (all such
      non-excluded communications being referred to herein collectively as
“Communications”), by transmitting the Communications in an
      electronic/soft medium in a format reasonably acceptable to the Administrative
      Agent to oploanswebadmin@citigroup.com.  In addition, the Company
      agrees to continue to provide the Communications to the Administrative Agent
      in
      the manner otherwise specified in this Agreement but only to the extent
      requested by the Administrative Agent.

    

    (c)  The
      Company further agrees that the Administrative Agent may make the Communications
      available to the Banks by posting the Communications on Intralinks or a
      substantially similar electronic transmission system (the
“Platform”).  THE PLATFORM IS PROVIDED “AS IS” AND “AS
      AVAILABLE”.  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE
      ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM
      AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE
      COMMUNICATIONS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR
      STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
      PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR
      OTHER
      CODE DEFECTS, IS MADE BY THE AGENT PARTIES IN CONNECTION WITH THE COMMUNICATIONS
      OR THE PLATFORM.  IN NO EVENT SHALL THE ADMINISTRATIVE AGENT OR ANY OF
      ITS AFFILIATES OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES,
      AGENTS, ADVISORS OR REPRESENTATIVES (COLLECTIVELY, THE “AGENT PARTIES”)
      HAVE ANY LIABILITY TO THE COMPANY, ANY BANK OR ANY OTHER PERSON OR ENTITY FOR
      DAMAGES OF ANY KIND, INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR
      CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR
      OTHERWISE) ARISING OUT OF THE COMPANY’S OR THE ADMINISTRATIVE AGENT’S
      TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE
      LIABILITY OF ANY AGENT PARTY IS FOUND IN A FINAL NON-APPEALABLE JUDGMENT BY
      A
      COURT OF COMPETENT JURISDICTION TO HAVE RESULTED PRIMARILY FROM SUCH AGENT
      PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

    

    (d)  The
      Administrative Agent agrees that the receipt of the Communications by the
      Administrative Agent at its e-mail address set forth above shall constitute
      effective delivery of the 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      -
        41 -

       

    

    Communications
      to the Administrative Agent for purposes of this Agreement.  Each Bank
      agrees that notice to it (as provided in the next sentence) specifying that
      the
      Communications have been posted to the Platform shall constitute effective
      delivery of the Communications to such Bank for purposes of this
      Agreement.  Each Bank agrees (i) to provide to the Administrative
      Agent in writing (including by electronic communication), promptly after the
      date of this Agreement, an e-mail address to which the foregoing notice may
      be
      sent by electronic transmission and (ii) that the foregoing notice may be sent
      to such e-mail address.

    

    (e)  Nothing
      herein shall prejudice the right of the Administrative Agent or any Bank to
      give
      any notice or other communication pursuant to this Agreement in any other manner
      specified herein.

    

    SECTION
      10.03.  No Waiver; Remedies.  No
      failure on the part of any Bank or the Administrative Agent to exercise, and
      no
      delay in exercising, any right hereunder 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
      10.04.  Costs, Expenses and Indemnification.

    

    (a)  The
      Company agrees to pay and reimburse on demand all reasonable costs and expenses
      of the Administrative Agent in connection with the preparation, execution,
      delivery, administration, modification and amendment of this Agreement and
      the
      other documents to be delivered hereunder, including the reasonable fees and
      out-of-pocket expenses of counsel for the Administrative Agent with respect
      hereto and with respect to advising the Administrative Agent as to its rights
      and responsibilities hereunder.  The Company further agrees to pay on
      demand all costs and expenses, if any (including reasonable counsel fees and
      expenses of the Administrative Agent and each of the Banks), incurred by the
      Administrative Agent, any Issuing Bank or any Bank in connection with the
      enforcement (whether through negotiations, legal proceedings or otherwise)
      of
      this Agreement including reasonable counsel fees and expenses in connection
      with
      the enforcement of rights under this Section 10.04(a).  The Company
      shall not be responsible to reimburse any Bank for the costs of the appointment
      by such Bank of a Confirming Bank.

    

    (b)  The
      Company hereby indemnifies the Administrative Agent, Citigroup Global Markets
      Inc., Banc of America Securities LLC and J.P. Morgan Securities Inc. as Joint
      Lead Arrangers and Joint Book Managers, each Bank, each Issuing Bank and each
      of
      their respective Affiliates and their respective officers, directors, employees,
      agents, advisors and representatives (each, an “Indemnified Party”) from
      and against any and all claims, damages, losses, liabilities, penalties and
      expenses (including fees and disbursements of counsel), joint or several, that
      may be incurred by or asserted or awarded against any Indemnified Party, in
      each
      case arising out of or in connection with or relating to any investigation,
      litigation or proceeding or the preparation of any defense with respect thereto
      arising out of or in connection with or relating to this Agreement or the
      transactions contemplated hereby or thereby, whether or not such investigation,
      litigation or proceeding is brought by the Company, any of its shareholders
      or
      creditors, an Indemnified Party or any other Person, or an Indemnified Party
      is
      otherwise a party thereto, and whether or not any of the conditions precedent
      set forth in Article III are satisfied or the other transactions contemplated
      by
      this Agreement are consummated, except to the extent such claim, damage, loss,
      liability or expense results from such Indemnified Party’s gross negligence or
      willful misconduct.  The Company hereby further agrees that no
      Indemnified Party shall have any liability (whether direct or indirect, in
      contract, tort or otherwise) to the Company for or in connection with or
      relating to this Agreement or the transactions contemplated hereby or thereby,
      except to the extent such liability is found in a final, non-appealable judgment
      by a court of competent jurisdiction to have resulted from such Indemnified
      Party’s gross negligence or willful misconduct; provided that nothing
      in this paragraph shall be deemed to constitute a waiver of any 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      -
        42 -

       

    

    claim
      the
      Company may have, or to exculpate any Person from any liability that such Person
      may have to the Company, for breach by such Person of its obligations under
      this
      Agreement.  Neither any Bank, any Issuing Bank  nor the
      Administrative Agent shall in any event be liable for any indirect,
      consequential or punitive damages.

    

    (c)  If
      (i) the Company makes any payment of principal of any Eurodollar Rate Advance
      on
      a day other than the last day of an Interest Period with respect thereto, or
      (ii) the Company fails to make a Borrowing or a prepayment of Eurodollar Rate
      Advances after having given notice thereof pursuant to this Agreement, the
      Company shall reimburse each Bank and each Issuing Bank upon demand for any
      resulting loss, cost or expense incurred by such Bank, including any loss
      incurred in obtaining, liquidating or employing deposits from third parties,
      but
      excluding loss of margin, for the period after such payment, failure to borrow
      or failure to prepay, or certificate of such Bank or such Issuing Bank in
      reasonable detail as to the amount of such loss, cost or expense to be
      conclusive and binding on the Company in the absence of manifest
      error.

    

    SECTION
      10.05.  Binding Effect.  This
      Agreement shall become effective when it shall have been executed by the Company
      and the Administrative Agent and when the Administrative Agent shall have been
      notified by each Bank that such Bank has executed it and the Effective Date
      has
      occurred and thereafter shall be binding upon and inure to the benefit of the
      Company, the Administrative Agent and each Bank and their respective successors
      and permitted assigns, except that the Company shall not have the right to
      assign its rights hereunder or any interest herein without the prior written
      consent of the Banks.

    

    SECTION
      10.06.  Assignments and Participations.

    

    (a)  Assignments
      Generally.  The provisions of this Agreement shall be binding upon
      and inure to the benefit of the parties hereto and their respective successors
      and assigns permitted hereby, except that (i) the Company may not assign or
      otherwise transfer any of its rights or obligations hereunder without the prior
      written consent of each Bank (and any attempted assignment or transfer by the
      Company without such consent shall be null and void) and (ii) no Bank may assign
      or otherwise transfer its rights or obligations hereunder except in accordance
      with this Section 10.06.  Nothing in this Agreement, expressed or
      implied, shall be construed to confer upon any Person (other than the parties
      hereto, their respective successors and assigns permitted hereby and, to the
      extent expressly contemplated hereby, Participants referred to in paragraph
      (e)
      below and the directors, officers, employees, attorneys and agents of each
      of
      the Administrative Agent, the Issuing Banks and the Banks) any legal or
      equitable right, remedy or claim under or by reason of this
      Agreement.

    

    (b)  Assignments
      by Banks.  Subject to the conditions set forth in clause (c)
      below, any Bank may assign to one or more assignees all or a portion of its
      Commitments, its obligations under each Letter of Credit and the Advances owing
      to it to any Eligible Bank (but not to any other Person), subject to the
      following requirements:

    

    
      	
               

            	
              (i)

            	
              each
                of the Company and the Administrative Agent (and, in the case of
                an
                assignment of all or a portion of a Revolving Credit Commitment or
                any
                Bank’s obligations in respect of its LC Exposure with respect to a Fronted
                Letter of Credit, the Issuing Bank) and, if Multi-Bank Letters of
                Credit
                are outstanding at the time of the assignment, the Beneficiary of
                each
                Multi-Bank Letter of Credit shall have consented thereto in writing,
                such
                consent not to be unreasonably withheld, provided that no such
                consent of the Company or such Beneficiary shall be required for
                an
                assignment to a Bank or an Affiliate of a Bank (so long as such Affiliate
                is also an Eligible Bank) or, if an Event of Default has occurred
                and is
                continuing, any other assignee, provided further that no such
                consent of 

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      -
        43 -

       

    

    
      	 	 	the
              Administrative Agent shall be required for an assignment of any Commitment
              to an assignee that is a Bank with a Commitment immediately prior to
              giving effect to such assignment, or to an Affiliate of such Bank (so
              long
              as such Affiliate is also an Eligible
              Bank);

    

    

    
      	
               

            	
              (ii)

            	
              such
                assignment shall be of the same percentage of the assigning Bank’s rights
                and obligations under this Agreement and its liability under or in
                respect
                of each Letter of Credit;

            

    

    

    
      	
               

            	
              (iii)

            	
              except
                in the case of an assignment by a Bank to one of its Affiliates or
                to
                another Bank, the amount of the Commitments of the assigning Bank
                being
                assigned (determined as of the date of the Assignment and Assumption
                with
                respect to such assignment) shall in no event (unless the Company
                and the
                Administrative Agent otherwise consent, provided that no such
                consent of the Company shall be required if an Event of Default has
                occurred and is continuing) be less than $10,000,000 or an integral
                multiple of $1,000,000 in excess
                thereof;

            

    

    

    
      	
               

            	
              (iv)

            	
              the
                parties to each such assignment shall execute and deliver to the
                Administrative Agent, for its acceptance and recording in a register
                for
                the recordation of the names and addresses of each of the Banks,
                an
                Assignment and Assumption covering such assignment, and the assignee,
                if
                it is not a Bank, shall deliver to the Administrative Agent an
                Administrative Questionnaire;

            

    

    

    
      	
               

            	
              (v)

            	
              if
                any Multi-Bank Letter of Credit is outstanding on the date of such
                assignment, either (i) the parties to such Multi-Bank Letter of Credit
                (including the relevant assignee) will authorize the Administrative
                Agent
                to issue a Replacement Letter of Credit for such Multi-Bank Letter
                of
                Credit reflecting such assignment (subject to the Beneficiary of
                such
                Multi-Bank Letter of Credit delivering the current Letter of Credit
                in
                exchange therefor) or (ii) an appropriate participation agreement
                or other
                arrangement satisfactory to the Banks will be entered into, as a
                condition
                to such assignment, with the relevant assignee in order to cause
                the
                rights and obligations, including the LC Exposures, of all Banks,
                including such assignee, with respect to such Multi-Bank Letter of
                Credit
                to be on a pro rata basis immediately after giving effect to the
                assignment; and

            

    

    

    
      	
               

            	
              (vi)

            	
              the
                parties to each such assignment (other than the Company) shall, prior
                to
                the effectiveness of such assignment, deliver to the Administrative
                Agent
                a processing and recordation fee of
                $3,500.

            

    

    

    Upon
      such
      execution, delivery, acceptance and recording, from and after the effective
      date
      specified in each Assignment and Assumption, (x) the assignee thereunder
      shall be a party hereto and, to the extent that rights and obligations hereunder
      have been transferred to it pursuant to such Assignment and Assumption, have
      the
      rights and obligations of a Bank hereunder and (y) the Bank assignor
      thereunder shall, to the extent that rights and obligations hereunder have
      been
      transferred by it pursuant to such Assignment and Assumption, relinquish its
      rights and be released from its obligations under this Agreement (and, in the
      case of an Assignment and Assumption covering all or the remaining portion
      of an
      assigning Bank’s rights and obligations under this Agreement, such Bank shall
      cease to be a party hereto).

    

    (c)  By
      executing and delivering an Assignment and Assumption, the Bank assignor
      thereunder and the assignee thereunder confirm to and agree with each other
      and
      the other parties hereto as follows:  (i) other than as provided in
      such Assignment and Assumption, such assigning Bank 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
      any related agreement, instrument or document or the execution, legality,
      validity, enforceability, 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      -
        44 -

       

    

    genuineness,
      sufficiency or value of this Agreement or any other instrument or document
      furnished pursuant hereto; (ii) such assigning Bank makes no representation
      or
      warranty and assumes no responsibility with respect to the financial condition
      of the Company or the performance or observance by the Company of any of its
      obligations under this Agreement or any related agreement, 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 6.01 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 Assumption; (iv) such assignee will,
      independently and without reliance upon the Administrative Agent, such assigning
      Bank or any other Bank 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 Bank (unless otherwise agreed in writing by the
      Administrative Agent, the Company and the Beneficiaries); (vi) such assignee
      irrevocably appoints and authorizes the Administrative Agent to take such action
      as administrative agent on its behalf and to exercise such powers under this
      Agreement as are delegated to the Administrative Agent by the terms hereof,
      together with such powers as are reasonably incidental thereto; and (vii) such
      assignee agrees that it will perform in accordance with their terms all of
      the
      obligations which by the terms of this Agreement are required to be performed
      by
      it as a Bank.

    

    (d)  Upon
      its receipt of an Assignment and Assumption executed by an assigning Bank and
      an
      assignee representing that it is an Eligible Bank, subject to such assignment,
      the Administrative Agent shall, if such Assignment and Assumption has been
      completed (and the Company, the Beneficiaries and the Administrative Agent
      shall
      have consented to the relevant assignment) and is in substantially the form
      of
      Exhibit D hereto, (i) accept such Assignment and Assumption,
      (ii) record the information contained therein in the register referred to
      above and (iii) give prompt notice thereof to the Company.

    

    (e)  Each
      Bank may sell participations to one or more banks or other entities in or to
      all
      or a portion of its rights and/or obligations under this Agreement (including
      all or a portion of its Commitments and the Advances owing to it);
provided that (i) such Bank’s obligations under this Agreement
      (including its Commitment) and the Letters of Credit shall remain unchanged,
      (ii) such Bank shall remain solely responsible to the other parties hereto
      for
      the performance of such obligations, (iii) the Company, the Administrative
      Agent, the Issuing Banks and the other Banks shall continue to deal solely
      and
      directly with such Bank in connection with such Bank’s rights and obligations
      under this Agreement, (iv) in any proceeding under the Federal Bankruptcy Code
      in respect of the Company, such Bank shall remain and be, to the fullest extent
      permitted by law, the sole representative with respect to the rights and
      obligations held in the name of such Bank (whether such rights or obligations
      are for such Bank’s own account or for the account of any participant) and (v)
      no participant under any such participation agreement shall have any right
      to
      approve any amendment or waiver of any provision of this Agreement or the
      Letters of Credit, or to consent to any departure by the Company therefrom,
      except to the extent that such amendment, waiver or consent would reduce the
      LC
      Reimbursement Obligations or principal of, or interest on, the Advances or
      any
      fees, commissions or other amounts payable hereunder, in each case to the extent
      subject to such participation, or postpone any date fixed for any payment of
      the
      LC Reimbursement Obligations or of 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.  No sale by a Bank of any
      participation shall alter the obligations of such Bank under any Letter of
      Credit.

    

    (f)  Any
      Bank may, in connection with any assignment or participation or proposed
      assignment or participation pursuant to this Section 10.06, disclose to the
      assignee or participant or proposed assignee or participant, any information
      relating to the Company or any of its Subsidiaries furnished to such Bank by
      or
      on behalf of the Company.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      -
        45 -

       

    

    (g)  Notwithstanding
      any other provision set forth in this Agreement, any Bank may at any time,
      without the consent of the Company, create a security interest in all or any
      portion of its rights under this Agreement in favor of any Federal Reserve
      Bank
      in accordance with Regulation A of the Board of Governors of the Federal Reserve
      System.

    

    (h)  Notwithstanding
      any other provision set forth in this Agreement, any Bank may at any time,
      without the consent of the Company, any Beneficiary or the Administrative Agent
      but with notice to the Company and the Administrative Agent, assign to an
      Affiliate of such Bank all or any portion of its rights (but not its
      obligations) under this Agreement.

    

    SECTION
      10.07.  Governing Law; Submission to Jurisdiction.

      This
      Agreement shall be governed by, and construed in accordance with, the law of
      the
      State of New York.  The Company hereby submits to the nonexclusive
      jurisdiction of the United States District Court for the Southern District
      of
      New York and of any New York state court sitting in New York City for the
      purposes of all legal proceedings arising out of or relating to this Agreement
      or the transactions contemplated hereby.  The Company irrevocably
      waives, to the fullest extent permitted by applicable law, any objection that
      it
      may now or hereafter have to the laying of the venue of any such proceeding
      brought in such a court and any claim that any such proceeding brought in such
      a
      court has been brought in an inconvenient forum.

    

    SECTION
      10.08.  Severability.

      In
      case any provision in this Agreement shall be held to be invalid, illegal or
      unenforceable, such provision shall be severable from the rest of this
      Agreement, and the validity, legality and enforceability of the remaining
      provisions shall not in any way be affected or impaired thereby.

    

    SECTION
      10.09.  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.

    

    SECTION
      10.10.  Survival.

      The
      obligations of the Company under Sections 2.02(a), 4.02, 4.05, and 10.04,
      and the obligations of the Banks under Section 9.05, shall survive the
      repayment of the LC Reimbursement Obligations, the expiration or termination
      of
      the Letters of Credit, the termination of the Commitments and the payment in
      full of principal, interest and all other amounts payable
      hereunder.  In addition, each representation and warranty made, or
      deemed to be made by any Notice of Borrowing, Notice of Issuance or Notice
      of
      Increase, herein or pursuant hereto shall survive the making of such
      representation and warranty, and no Bank shall be deemed to have waived, by
      issuing a Letter of Credit or making an Advance, any Default or Event of Default
      that may arise by reason of such representation or warranty proving to have
      been
      false or misleading, notwithstanding that such Bank, any Issuing Bank or the
      Administrative Agent may have had notice or knowledge or reason to believe
      that
      such representation or warranty was false or misleading at the time such
      extension of credit was made.

    

    SECTION
      10.11.  Sharing of Set-Offs, Etc.

    

    (a)  Without
      limiting any of the rights or obligations of the Administrative Agent or the
      Banks or the rights or obligations of the Company hereunder, if the Company
      shall fail to pay when due (whether at stated maturity, by acceleration or
      otherwise) any amount payable by it hereunder, each Bank is hereby authorized
      at
      any time and from time to time, to the fullest extent permitted by law, without
      prior notice to the Company (which notice is expressly waived by the Company
      to
      the fullest extent permitted by applicable law), to set off and appropriate
      and
      apply against such amount any and all deposits (general or special, time or
      demand, provisional or final, in any currency, matured or unmatured) and any
      other obligations at any time held or owing by such Bank or any Subsidiary,
      Affiliate, branch or agency thereof to or for the credit or account of the
      Company.  Such Bank shall promptly provide notice to the Company of
      such set-off, provided that failure by such Bank to provide such notice
      to the Company shall not give the Company any 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      -
        46 -

       

    

    cause
      of
      action or right to damages or affect the validity of such set-off and
      application.  The rights of each Bank under this Section are in
      addition to any other rights and remedies (including any other rights of
      set-off) that such Bank may have.

    

    (b)  Each
      Bank agrees that if it shall, by exercising any right of set-off or counterclaim
      or otherwise, receive payment of a proportion of the aggregate LC Reimbursement
      Obligations or the Advances or interest due with respect thereto in excess
      of
      its pro rata share thereof the Bank receiving such proportionately
      greater payment shall purchase such participations from the other Banks, and/or
      such other adjustments shall be made, as may be required so that all such
      payments shall be shared by the Banks pro rata as provided in this
      Agreement; provided that nothing in this Section shall impair the right
      of any Bank to exercise any right of set-off or counterclaim it may have and
      to
      apply the amount thereof to the payment of indebtedness of the Company other
      than its indebtedness under this Agreement.  The Company agrees, to
      the fullest extent it may effectively do so under applicable law, that any
      holder of a participation under this clause may exercise rights of set-off
      or
      counterclaim and other rights with respect to such participation as fully as
      if
      such holder of a participation were a direct creditor of the Company in the
      amount of such participation.

    

    SECTION
      10.12.  Waiver of Jury Trial.  EACH
      OF THE COMPANY, THE ADMINISTRATIVE AGENT AND THE BANKS HEREBY IRREVOCABLY
      WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT
      TO
      TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
      AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

    

    SECTION
      10.13.  Confidentiality.  Neither
      the Administrative Agent nor any Bank shall disclose any Confidential
      Information to any Person without the consent of the Company, other than
      (a) to the Administrative Agent’s or such Bank’s Affiliates and their
      officers, directors, employees, agents and advisors and to actual or prospective
      assignees and participants, and then only on a confidential basis, (b) to
      the extent required by any applicable law, rule or regulation or judicial
      process, (c) to any rating agency when required by it, (d) to any other
      party hereto, (e) in connection with the exercise of any remedies hereunder,
      (f)
      subject to an agreement containing provisions substantially the same as those
      of
      this paragraph, to any assignee of or Participant in, or any prospective
      assignee of or Participant in, any of its rights or obligations under this
      Agreement and (g) as requested or required by any state, federal or foreign
      authority or examiner or self-regulatory body regulating banks or
      banking.

    

    SECTION
      10.14.  USA PATRIOT Act.  Each
      Bank hereby notifies the Company 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 the Company, which information includes the name
      and
      address of the Company and other information that will allow such Bank to
      identify the Company in accordance with the Act.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    -
      47 -

    

    
      	 	
              CIGNA
                CORPORATION

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Mordecai Schwartz
	 	 	
              Name:
                Mordecai Schwartz

            
	 	 	
              Title:
                Vice President and Treasurer

            
	 	 	 
	 	 	 
	 	
              CITIBANK,
                N.A., as Administrative

            
	 	
                Agent

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Peter Bickford
	 	 	
              Name:
                Peter Bickford

            
	 	 	
              Title:
                Vice President

            
	 	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      -
        48
        -

       

    

    
      	 	
              Banks

            
	 	 	 
	 	
              CITIBANK,
                N.A.

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Peter Bickford
	 	 	
              Name:
                Peter Bickford

            
	 	 	
              Title:
                Vice President

            
	 	 	 
	 	 	 
	 	
              BANK
                OF AMERICA, N.A.

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Craig Murlless
	 	 	
              Name:
                Craig Murlless

            
	 	 	
              Title:
                Senior Vice President

            
	 	 	 
	 	 	 
	 	
              JPMORGAN
                CHASE BANK, N.A.

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Dawn Lee Lum
	 	 	
              Name:
                Dawn Lee Lum

            
	 	 	
              Title:
                Executive Director

            
	 	 	 
	 	 	 
	 	
              THE
                BANK OF TOKYO-MITSUBISHI

            
	 	
                UFJ,
                LTD., NEW YORK BRANCH

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Scott Schaffer
	 	 	
              Name:
                Scott Schaffer

            
	 	 	
              Title:
                Authorized Secretary

            
	 	 	 
	 	 	 
	 	 	 
	 	
              DEUTSCHE
                BANK AG

            
	 	
                NEW
                YORK BRANCH

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Ming K. Chu
	 	 	
              Name:
                Ming K. Chu

            
	 	 	
              Title:
                Vice President

            
	 	 	 
	 	
              By

            	/s/
              Heidi Sandquist
	 	 	
              Name:
                Heidi Sandquist

            
	 	 	
              Title:
                Vice President

            
	 	 	 
	 	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      - 49
        -

       

    

    
      	 	
              BARCLAYS
                BANK PLC

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Esther Carr
	 	 	
              Name:
                Esther Carr

            
	 	 	
              Title:
                Manager

            
	 	 	 
	 	 	 
	 	
              MELLON
                BANK, N.A.

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              John M. DiMarsico
	 	 	
              Name:
                John M. DiMarsico

            
	 	 	
              Title:
                Vice President

            
	 	 	 
	 	 	 
	 	
              SUMITOMO
                MITSUI BANKING

            
	 	
                CORPORATION

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Leo Pagarigan
	 	 	
              Name:
                Leo Pagarigan

            
	 	 	
              Title:
                General Manager

            
	 	 	 
	 	 	 
	 	
              WACHOVIA
                BANK,

            
	 	
                NATIONAL
                ASSOCIATION

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Jeanette A. Griffin
	 	 	
              Name:
                Jeanette A. Griffin

            
	 	 	
              Title:
                Director

            
	 	 	 
	 	 	 
	 	
              WILLIAM
                STREET

            
	 	
                CREDIT
                CORPORATION

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Mark Walton
	 	 	
              Name:
                Mark Walton

            
	 	 	
              Title:
                Assistant Vice President

            
	 	 	 

    

    

    
      	 	
              UBS
                AG, STAMFORD BRANCH

            	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	
              By

            	/s/
              Irja R. Otsa	By:	/s/
              Mary E. Evans
	 	 	
              Name:
                Irja R. Otsa

            	 	Name:
              Mary E. Evans
	 	 	
              Title:  
                Associate Director

              Banking
                Products

              Services,
                US

            	 	
              Title:  
                Associate Director

              Banking
                Products

              Services,
                US

            
	 	 	 	 	 
	 	 	 	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      -
        50 -

       

    

    
      	 	
              FIFTH
                THIRD BANK

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Randolph J. Stierer
	 	 	
              Name:
                Randolph J. Stierer

            
	 	 	
              Title:
                Vice President

            
	 	 	 
	 	 	 
	 	 	 
	 	
              HSBC
                BANK USA, N.A.

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Dennis Cogan
	 	 	
              Name:
                Dennis Cogan

            
	 	 	
              Title:
                Managing Director

            
	 	 	 
	 	 	 
	 	
              PNC
                BANK, NATIONAL ASSOCIATION

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Marie E. Totin
	 	 	
              Name:
                Marie E. Totin

            
	 	 	
              Title:
                Vice President

            
	 	 	 
	 	 	 
	 	
              STATE
                STREET BANK

            
	 	
                AND
                TRUST COMPANY

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Lise Anne Boutiette
	 	 	
              Name:
                Lise Anne Boutiette

            
	 	 	
              Title:
                Vice President

            
	 	 	 
	 	 	 
	 	
              WELLS
                FARGO BANK,

            
	 	
                NATIONAL
                ASSOCIATION

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Elizabeth S. Collins
	 	 	
              Name:
                Elizabeth S. Collins

            
	 	 	
              Title:
                Vice President

            
	 	 	 
	 	 	 
	 	
              U.S.
                BANK, N.A.

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Patrick McGraw
	 	 	
              Name:
                Patrick McGraw

            
	 	 	
              Title:
                Vice President

            
	 	 	 
	 	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      -
        51
        -

       

    

    
      	 	
              COMERICA
                BANK

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Richard C. Hampson
	 	 	
              Name:
                Richard C. Hampson

            
	 	 	
              Title:
                Vice President

            
	 	 	 
	 	 	 
	 	 	 
	 	
              MIZUHO
                CORPORATE BANK (USA)

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Raymond Ventura
	 	 	
              Name:
                Raymond Ventura

            
	 	 	
              Title:
                Deputy General Manager

            
	 	 	 
	 	 	 
	 	
              NATIONAL
                CITY BANK

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Gustavus Bahr
	 	 	
              Name:
                Gustavus Bahr

            
	 	 	
              Title:
                Senior Vice President

            
	 	 	 
	 	 	 
	 	
              THE
                NORTHERN TRUST COMPANY

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Peter J. Hallan
	 	 	
              Name:
                Peter J. Hallan

            
	 	 	
              Title:
                Vice President

            
	 	 	 
	 	 	 
	 	
              SOVEREIGN
                BANK

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Nancy E. Fuller
	 	 	
              Name:
                Nancy E. Fuller

            
	 	 	
              Title:
                Senior Vice President

            
	 	 	 
	 	 	 
	 	
              SUNTRUST
                BANK

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Gregory M. Ratliff
	 	 	
              Name:
                Gregory M. Ratliff

            
	 	 	
              Title:
                Vice President

            
	 	 	 
	 	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      -
        52
        -

       

    

    
      	 	
              WEBSTER
                BANK,

            
	 	
                NATIONAL
                ASSOCIATION

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Lawrence Davis
	 	 	
              Name:
                Lawrence Davis

            
	 	 	
              Title:
                Vice President

            
	 	 	 
	 	 	 
	 	
              THE
                BANK OF NEW YORK

            
	 	 	 
	 	 	 
	 	
              By

            	/s/
              Christopher Kordes
	 	 	
              Name:
                Christopher Kordes

            
	 	 	
              Title:
                Vice Presidentex10_38.htm

     

     

     

    Exhibit
      10.38

     

    

    ASSET
      PURCHASE AGREEMENT*

    

    

    BETWEEN

    

    

    THE
      GREAT ATLANTIC & PACIFIC TEA COMPANY, INC

    (together
      with its subsidiaries)

    

    and

    

    OCEAN
      LOGISTICS LLC

    

    and

    

    for
      the limited purposes set forth herein and as of guarantor

    

    C
      & S WHOLESALE GROCERS, INC.

    

    

    

    Dated
      as of June 27, 2005

     

     

     

     

     

     

     

     

     

     

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
 

    
      	
              ARTICLE
                I CONVEYANCE OF THE ACQUIRED ASSETS

            	
              2

            
	
              Section
                1.1  Acquired Assets

            	
              2

            
	
              ARTICLE
                II PURCHASE PRICE

            	
              4

            
	
              Section
                2.1  Purchase Price; Payment

            	
              4

            
	
              ARTICLE
                III LIABILITIES

            	
              4

            
	
              Section
                3.1  Excluded Liabilities

            	
              4

            
	
              Section
                3.2  Assumed Liabilities

            	
              5

            
	
              Section
                3.3  Sale of Assets Under Section 4204 of ERISA

            	
              5

            
	
              Section
                3.4  Baltimore Drivers

            	
              8

            
	
              ARTICLE
                IV REPRESENTATIONS AND WARRANTIES

            	
              8

            
	
              Section
                4.1  Representations and Warranties of Seller

            	
              8

            
	
              Section
                4.2  Representations and Warranties of Purchaser

            	
              14

            
	
              ARTICLE
                V EMPLOYEE MATTERS

            	
              16

            
	
              Section
                5.1  Responsibility for Employees

            	
              16

            
	
              Section
                5.2  Offers of Employment

            	
              17

            
	
              Section
                5.3  Freshtown and Edison

            	
              17

            
	
              ARTICLE
                VI CONDITIONS TO CLOSING

            	
              17

            
	
              Section
                6.1  Conditions to Obligations of Purchaser

            	
              17

            
	
              Section
                6.2  Conditions to Obligations of Seller

            	
              19

            
	
              ARTICLE
                VII CLOSING

            	
              20

            
	
              Section
                7.1  The Closing

            	
              20

            
	
              Section
                7.2  Seller's Obligations

            	
              20

            
	
              Section
                7.3  Purchaser's Obligations

            	
              22

            
	
              ARTICLE
                VIII CERTAIN ADDITIONAL COVENANTS

            	
              23

            
	
              Section
                8.1  Further Assurances

            	
              23

            
	
              Section
                8.2  Reasonable Access

            	
              23

            
	
              Section
                8.3  Inventory

            	
              24

            
	
              Section
                8.4  Non-Acquired Facilities Inventory

            	
              24

            
	
              Section
                8.5  Inventory Repurchase

            	
              25

            
	
              Section
                8.6 Inventory Actual Cost Payment

            	
              26

            
	
              Section
                8.7  Injunctions/Orders

            	
              26

            
	
              Section
                8.8  Conveyance Taxes

            	
              26

            
	
              Section
                8.9  Apportionments and Prepaid Expenses

            	
              26

            
	
              Section
                8.10  Allocation of Purchase Price

            	
              28

            
	
              Section
                8.11  Obtaining Permits

            	
              28

            
	
              Section
                8.12  Waivers

            	
              28

            
	
              Section
                8.13  Non-Disturbance Agreements

            	
              28

            
	
              Section
                8.14  Insurance

            	
              29

            
	
              Section
                8.15  Transition Fee

            	
              29

            
	
              Section
                8.16  Fair Market Price

            	
              30

            
	
              Section
                8.17  IT Services

            	
              30

            
	
              Section
                8.18  Exhibits

            	
              31

            
	
              Section
                8.19  Repairs

            	
              31

            

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    
      	
              ARTICLE
                IX INDEMNIFICATION

            	
              31

            
	
              Section
                9.1  Survival

            	
              31

            
	
              Section
                9.2  Indemnification Provisions for Benefit of
                Purchaser

            	
              31

            
	
              Section
                9.3  Indemnification Provisions for Benefit of
                Seller

            	
              33

            
	
              Section
                9.4  Procedures Relating to Indemnification

            	
              34

            
	
              Section
                9.5  Time Limitations

            	
              35

            
	
              Section
                9.6.   General Indemnification Provisions

            	
              35

            
	
              ARTICLE
                X TERMINATION

            	
              36

            
	
              Section
                10.1  Termination

            	
              36

            
	
              Section
                10.2  Effect of Termination

            	
              37

            
	
              ARTICLE
                XI OPERATIONS PENDING CLOSING

            	
              38

            
	
              Section
                11.1  Pending Operations

            	
              38

            
	
              ARTICLE
                XII DEFINITIONS

            	
              39

            
	
              Section
                12.1  Certain Defined Terms

            	
              39

            
	
              ARTICLE
                XIII MISCELLANEOUS

            	
              46

            
	
              Section
                13.1  Entire Agreement

            	
              46

            
	
              Section
                13.2  Expenses

            	
              46

            
	
              Section
                13.3  No Recording of Agreement

            	
              46

            
	
              Section
                13.4  No Brokers

            	
              46

            
	
              Section
                13.5  Amendments

            	
              47

            
	
              Section
                13.6  Notices

            	
              47

            
	
              Section
                13.7  Binding Effect; C&S Guaranty

            	
              48

            
	
              Section
                13.8  Counterparts; Facsimile Signature

            	
              49

            
	
              Section
                13.9  No Third-Party Beneficiaries

            	
              49

            
	
              Section
                13.10  Severability

            	
              49

            
	
              Section
                13.11 Headings

            	
              49

            
	
              Section
                13.12  Bulk Sales Indemnity

            	
              49

            
	
              Section
                13.13  Public Announcement

            	
              50

            
	
              Section
                13.14 Governing Law

            	
              50

            
	
              Section
                13.15  Dispute Resolution

            	
              50

            

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
 

    
      
        EXHIBITS

        

        

        
          	
                  Exhibit
                    A

                	
                  List
                    of Equipment Assets [CONFIDENTIAL]

                
	 	 
	
                  Exhibit
                    A-1

                	
                  Equipment
                    Assets and Value [CONFIDENTIAL]

                
	 	 
	
                  Exhibit
                    A-2

                	
                  Tractors
                    and Trailers [CONFIDENTIAL]

                
	 	 
	
                  Exhibits
                    B-1 and B-2

                	
                  Assumed
                    Contracts with corresponding amount of fixed Assumed Liabilities
                    [CONFIDENTIAL]

                
	 	 
	
                  Exhibit
                    B-3

                	
                  Material
                    Assumed Contracts [CONFIDENTIAL]

                
	 	 
	
                  Exhibit
                    C

                	
                  Legal
                    Description of the Dunmore Owned Facility

                
	 	 
	
                  Exhibit
                    C-1, C-2 and C-3

                	
                  Legal
                    Descriptions of the Leased Facilities

                
	 	 
	
                  Exhibit
                    C-4

                	
                  Legal
                    Description of the New Orleans Owned Facility

                
	 	 
	
                  Exhibit
                    C-5

                	
                  Legal
                    Description of the Baltimore Owned Facility

                
	 	 
	
                  Exhibit
                    D

                	
                  Form
                    of Assignment

                
	 	 
	
                  Exhibit
                    E

                	
                  New
                    Orleans Sublease

                
	 	 
	
                  Exhibit
                    F

                	
                  Leased
                    Equipment

                
	 	 
	
                  Exhibit
                    G-1, G-2 and G-3

                	
                  Special
                    Warranty Deeds for the Dunmore Owned, New Orleans and Baltimore
                    Owned
                    Facilities

                
	 	 
	
                  Exhibit
                    H

                	
                  Permits
                    and Licenses

                
	 	 
	
                  Exhibit
                    I

                	
                  Supply
                    Agreement [FILED SEPARATELY]

                
	 	 
	
                  Exhibit
                    J

                	
                  Lease
                    Documents

                

        

        

        
          

        

         

        *Material
          omitted and filed separately with the Securities and Exchange Commission
          pursuant to a request for confidential treatment under Rule
          24-b2.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        SCHEDULES

        

        
          	
                  Schedule
                    1.1

                	
                  Excluded
                    Assets

                
	
                  Schedule
                    4.1(e)(vi)

                	
                  Written
                    Notice of Non-Compliance

                
	
                  Schedule
                    4.1(e)(vii)

                	
                  Written
                    Notice of Repairs

                
	
                  Schedule
                    4.1(h)

                	
                  Necessary
                    Repairs

                
	
                  Schedule
                    4.1(j)

                	
                  Litigation

                
	
                  Schedule
                    4.1(l)

                	
                  Consents,
                    Approvals, etc. [CONFIDENTIAL]

                
	
                  Schedule
                    4.1(n)

                	
                  Violations
                    [CONFIDENTIAL]

                
	
                  Schedule
                    4.1(o)

                	
                  Environmental
                    Issues [CONFIDENTIAL]

                
	
                  Schedule
                    4.1(p)(i)(A)

                	
                  Affected
                    Employees (with department, hiring date and salary)
                    [CONFIDENTIAL]

                
	
                  Schedule
                    4.1(p)(i)(B)

                	
                  Employment
                    agreements, severance agreements and severance plans with respect
                    to
                    Affected Employees

                
	
                  Schedule
                    4.1(p)(ii)

                	
                  Multiemployer
                    Pension Plan List [CONFIDENTIAL]

                
	
                  Schedule
                    4.1(p)(iii)

                	
                  Contributions
                    made to each Multiemployer Pension Plan for the most recent 5
                    plan
                    years

                
	
                  Schedule
                    5.1

                	
                  Affected
                    Employee Accrued Liabilities [CONFIDENTIAL]

                
	
                  Schedule
                    8.3

                	
                  Inventory
                    Procedure [CONFIDENTIAL]

                
	
                  Schedule
                    8.8

                	
                  Conveyance
                    Taxes

                
	
                  Schedule
                    8.17

                	
                  IT
                    Services

                
	
                  Schedule
                    12.1(g)

                	
                  Assumed
                    Collective Bargaining Agreements

                

        

        

      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule 24-b2.

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    
 

    

    ASSET
      PURCHASE AGREEMENT*

    

    

    THIS
      ASSET PURCHASE AGREE­MENT, dated as of June 27, 2005 (this
      "Agreement"), is made by and between The Great Atlantic & Pacific Tea
      Company, Inc., a Maryland corporation ("A&P"), together with any of
      its subsidiaries holding title or interest in the Acquired Assets (as defined
      below) or otherwise necessary in order to effectuate the transactions
      contemplated herein (collectively, “Seller”), and Ocean Logistics LLC, a
      Delaware limited liability company (“Purchaser" and, together with
      Seller, the "Parties” and each individually a “Party”), and
      C&S Whole­sale Grocers, Inc. (“C&S”), a Vermont corporation,
      for the limited purposes as stated in this Agreement, and for all purposes
      as
      guarantor of Purchaser.

    

    WITNESSETH

    

    WHEREAS,
      Seller has decided to exit the distribution business in the United
      States;

    

    WHEREAS,
      Purchaser desires to pur­chase certain of Seller’s distribution assets and
      take over the distribution of merchandise to many of Seller’s grocery
      stores;

    

    WHEREAS,
      at or prior to the applicable Closing herewith, the Parties and C&S will
      enter into various agreements contemplated herein including but not limited
      to
      the following agreements (the "Related Agreements"): (i) a supply
      agreement, whereby C&S will supply Seller with all of its require­ments
      of groceries, perishables, frozen food and other merchandise in the product
      categories carried by C&S (the "Supply Agreement"), all as set forth
      on Exhibit I; (ii) an assignment of lease in the form of Exhibit D
for the facility located in Islip, New York, which is leased
      by Seller, as
      more fully described on Exhibit C-1 attached hereto (the "Islip Leased
      Facility"); (iii) an assignment of lease in the form of Exhibit D for
      the facility located in Baltimore, Maryland, which is leased by Seller, as
      more
      fully described on Exhibit C-2 attached hereto (the "Baltimore Leased
      Facility"); (iv) a sublease in the form of Exhibit E for the facility
      located in New Orleans, Louisiana, which is leased by Seller, as more fully
      described on Exhibit C-3 attached hereto (the "New Orleans Leased
      Facility"); (vi) a special warranty deed in the form of Exhibit G-1
      for the facility at Dunmore, Pennsylvania, which is owned by Seller, as more
      fully described on Exhibit C, attached hereto (the “Dunmore Owned
      Facility”); (vii) a special warranty deed in the form of Exhibit G-2
      for the facility at New Orleans, Louisiana, which is owned by Seller, as more
      fully described on Exhibit C-4, attached hereto (the "New Orleans
      Owned Facility") and (viii) a special warranty deed in the form of
Exhibit G-3 for the facility at Baltimore, Maryland, which is owned by
      Seller, as more fully described on Exhibit C-5, attached hereto (the
      "Baltimore Owned Facility"), all as more fully set forth in Section 1.1
      below.  

     

    
      
        
          

        

         

        *Material
          omitted and filed separately with the Securities and Exchange Commission
          pursuant to a request for confidential treatment under Rule 24-b2.

         

      

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    Islip
      Leased Facility, Baltimore Leased Facility, New Orleans Leased Facility, Dunmore
      Owned Facility, New Orleans Owned Facility and Baltimore Owned Facility are
      collectively referred to herein as the "Acquired
      Facilities."

    

    NOW,
      THEREFORE, in consideration of the promis­es, warranties, and covenants
      contained in this Agree­ment, and intending to be legally bound hereby, the
      Parties agree as follows:

    

    ARTICLE
      I

    CONVEYANCE
      OF THE ACQUIRED ASSETS

    

    Section
      1.1  Acquired Assets.  Upon the terms and subject to
      the conditions of this Agreement, at the applicable Closing (as set forth in
      Article VII), Seller shall sell, transfer, assign, convey, and deliver to
      Purchas­er or its designee, and Purchaser or its designee shall purchase,
      accept, and acquire from Seller, free and clear of any and all Liens, all of
      the
      right, title and interest of Seller, as applicable, in and to the following
      assets (collectively, and including the Acquired Facilities, the "Acquired
      Assets"), except for the assets listed on Schedule 1.1 hereto (the
      "Excluded Assets"):

    

    (a)  Readily
      Saleable Merchandise existing at the Acquired Facilities on the applicable
      Closing Date after Seller has reduced the inventory level to a level as low
      as
      reasonably practicable while maintaining adequate service levels (collectively,
      the "Transferred Inventory”);

    

    (b)  All
      of Seller's rights and benefits under the Assumed Contracts and the Assumed
      Collective Bargaining Agreements;

    

    (c)  (i)
      All owned machinery, equipment (including, without limitation, all computers
      located in or at the Acquired Facil­i­ties but not licensed computer
      software that is non-transferable), computer software, computer hardware, office
      materi­als, tools, pallets, spare parts, rolling stock, supplies and all
      other tangible personal property located in and at the Acquired Facili­ties
      or otherwise listed on the attached Exhibit A, and the lease­hold
      im­prove­ments cur­rently in, on, or attached to the Acquired
      Facili­ties in­clud­ing, with­out limi­ta­tion, the
      racks at or attached to each of the Acquired Facili­ties, and all warranties
      related to the assets, and (ii) any transportation equipment (tractors, trailers
      or yard horses) or Material Handling Equipment selected by Purchaser in its
      sole
      discretion, in or at the Edison Facility or the Freshtown Facility, specifically
      set forth on Exhibit A (collec­tive­ly, the "Equipment
      Assets").  The Equipment Assets shall also include the leased
      tractors and trailers set forth on Exhibit A-2 which Seller will
      purchase.  Purchaser shall pay the fair market value for such tractors
      and trailers as agreed to by the Parties.  If the Parties cannot
      agree on a price for the tractors and trailers listed on Exhibit
      A-

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    2,
      the Parties shall appoint a transportation expert to assign a fair market
      value. A list of the Equipment Assets is attached hereto
      as Exhibit A;

    

    (d)  All
      of Seller's right, title and interest in and to the Dunmore Owned Facility:
      (i)
      more particularly described in Exhibit C hereto located in Dunmore,
      Pennsylvania, including all structures and improvements thereon, all easements,
      rights-of-way, privileges, zoning and development rights and other rights and
      benefits, if any, which are appurtenant to such real property, and all right,
      title and interest of Seller in and to any gaps, strips or gores adjoining
      or
      adjacent to such real property and in and to any land lying in the bed of any
      street, road or avenue, open or proposed, in front of or adjoining such real
      property;

    

    (e)   All
      of Seller's right, title and interest in and to the New Orleans Owned Facility
      more particularly described in Exhibit C-4 hereto located in New Orleans,
      Louisiana, including all structures and improvements thereon, all easements,
      rights-of-way, privileges, zoning and development rights and other rights and
      benefits, if any, which are appurtenant to such real property, and all right,
      title and interest of Seller in and to any gaps, strips or gores adjoining
      or
      adjacent to such real property and in and to any land lying in the bed of any
      street, road or avenue, open or proposed, in front of or adjoining such real
      property;

    

    (f)  All
      of Seller's right, title and interest in and to the Baltimore Owned Facility
      more particularly described in Exhibit C-5 hereto located in Baltimore,
      Maryland, including all structures and improvements thereon, all easements,
      rights-of-way, privileges, zoning and development rights and other rights and
      benefits, if any, which are appurtenant to such real property, and all right,
      title and interest of Seller in and to any gaps, strips or gores adjoining
      or
      adjacent to such real property and in and to any land lying in the bed of any
      street, road or avenue, open or proposed, in front of or adjoining such real
      property;

    

     (g)  All
      Seller's right, title and interest as tenant in and to the Islip Facility Lease
      pursuant to an assignment and assumption in the form attached hereto as
Exhibit D (the "Islip Facility Lease Assignment");
      and

    

    (h)  All
      Seller's right, title and interest as tenant in and to the Baltimore Facility
      Lease pursuant to an assignment and assumption in the form attached hereto
      as
Exhibit D (the "Baltimore Facility Lease
      Assignment").

    

    (i)  Sublease.  Upon
      the terms and subject to the conditions of this Agreement, at the applicable
      Closing (as set forth in Section VII), Seller shall execute and deliver to
      Purchaser or its designee, and Purchaser or its designee shall execute and
      deliver to Seller, the following sublease (the "New Orleans Sublease")
      for a term through December 30, 2007, with

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    one
      (1)
      five (5) year option: a sublease of the New Orleans Leased Facility in the
      form
      attached hereto as Exhibit E.

    

    ARTICLE
      II

    PURCHASE
      PRICE

    

    Section
      2.1  Purchase Price; Payment.

    

    The
      aggregate purchase price for the Acquired Assets (the "Purchase Price")
      shall be the amount of:

    

    (a)
      The
      aggregate amount of Seller's Actual Cost for the Transferred Inventory as of
      the
      Procurement Conversion Dates and the Non-Acquired Facilities Inventory (as
      defined herein) as calculated in accordance with Sections 8.3 and 8.4;
      plus

    

    (b)
      the
      amounts set forth on Exhibit A-1 with respect to the Equipment Assets
      being transferred at the applicable Closing.  The purchase price for
      the Equipment Assets will be depreciated through the applicable Procurement
      Conversion Dates; plus

    

    (c)
      [*]
      of the Fair
      Market Price of the Dunmore Owned Facility and the New Orleans Owned Facility,
      and [*]
      of the Fair Market Price of the Baltimore Owned Facility as more fully described
      in Section 8.16.

    

    

    ARTICLE
      III

    LIABILITIES

    

    Section
      3.1  Excluded Liabilities.  Purchaser will not assume
      any liabilities or obligations arising out of or in connection with or otherwise
      related to the Acquired Assets existing on the date of the applicable Closing
      or
      date of transfer of title in the case of a Delayed Closing (as defined herein),
      or arising after such Closing on such Acquired Asset or date of transfer of
      title in the case of a Delayed Closing in connection with or as a result of
      the
      owner­ship of any Acquired Assets by Seller prior to the applicable Closing
      or Delayed Closing, as applicable (whether absolute, accrued, contin­gent,
      known or unknown or other­wise, and whether filed or asserted prior to or
      after the applicable Closing Date or Delayed Closing, as applicable) (the
      "Ex­cluded Liabili­ties"), includ­ing, without limitation,
      any liabilities or obliga­tions with respect to employee matters, any
      Workers’ Compensation, disability benefit and medical benefit claims (including
      loss development and costs associated with claims incurred prior to the
      applicable Closing), products liabili­ty, environ­mental matters,
      litigation with respect to the Acquired Assets, vendor paybacks, or any other
      liabilities, includ­ing, without limitation, any

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    liability
      attributable to or incurred by Seller arising from, or relating to, any
      collective bargaining agreement, bonus, incentive, de­ferred
      compen­sation, insurance, severance, termination, retention, change of
      control, employment, stock option, stock appre­ciation, stock purchase,
      phantom stock or other equity-based, performance, vacation, accrued but unpaid
      benefits, retiree bene­fit plan, program, agreement or arrangement (except
      to the extent paid for by Seller under Section 5.1) (in­clud­ing,
      with­out limi­ta­tion, any "em­ploy­ee bene­fit plan" as
      de­fined in ERISA Section 3(3), spon­sored, main­tained, contributed
      to or required to be contributed to by Seller or any trade or business which
      together with Seller would be deemed a "single employ­er" within the meaning
      of Section 4001 of ERISA (each, an "ERISA Affili­ate"), for the
      benefit of any current or former employee of Seller or any of their
      Affiliates.)  The Excluded Liabilities shall also include any
      liabilities or obligations of Seller pursuant to the New Orleans Facility Lease,
      except as expressly set forth in the New Orleans Sublease and any liabilities
      arising pursuant to contracts that are not Assumed Contracts or that are Assumed
      Contracts that Seller cannot assign to Purchaser.  The Excluded
      Liabilities shall remain the liability of Seller.  If any liability is
      asserted with respect to any employee matter relating to acts or omissions
      occurring both before and after the date of the applicable Closing, the Seller
      and Purchaser agree to meet in good faith to apportion such liability between
      themselves based on the particular Party’s responsibility for the alleged acts
      or omissions.

    

    Section
      3.2  Assumed Liabilities.  Subject to the assignment
      of the Assumed Contracts, the Assumed Collective Bargaining Agreements and
      the
      execution of the Islip Facility Lease Assignment and the Baltimore Facility
      Lease Assignment, and the New Orleans Sublease, effective at the applicable
      Closing on any Acquired Asset or the Delayed Closing, as applicable, Purchaser
      will assume all of Seller's obligations arising on or after the applicable
      Closing Date or the Delayed Closing, as applicable, under the Assumed Contracts
      listed on Exhibit B-1 and the Assumed Collective Bargaining Agreements (subject
      to Seller's obligation to pay accrued vacation and any and all other accrued
      paid time off, pursuant to Section 5.1) (the "Assumed
      Liabilities").  Purchaser shall also be liable for any and all
      obligations pursuant to the Islip Facility Lease, the Baltimore Facility Lease,
      the New Orleans Owned Facility, the Baltimore Owned Facility and the Dunmore
      Owned Facility arising on or after the applicable Closing Date (except as set
      forth herein) or for any obligations Purchaser undertakes pursuant to the New
      Orleans Sublease and all such obligations shall be a part of the Assumed
      Liabilities. 

    

    Section
      3.3  Sale of Assets Under Section 4204 of ERISA.

    

    (a)
General.  With
      respect to the Acquired Facilities except the Baltimore Leased Facility and
      the
      Baltimore Owned Facility, Seller employs employees who are members of collective
      bargaining units represented by certain unions and participating in those
      Multiemployer Pension Plans (the "Multiemployer Pension Plans")
      identified on Schedule 4.1(p)(ii) and, with respect to the members of such
      collective bargaining units, has an obligation

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    to
      contribute to the Multiemployer Pension Plans.  Seller and Purchaser
      intend by the provisions that follow to comply with and utilize the sale of
      assets rule of section 4204 of the Employee Retirement Income Security Act
      of
      1974, as amended by the Multiemployer Pension Plan Amendments Act of 1980
      ("ERISA").

    

    (b)  Nature
      of
      Transaction.  The sale reflected in this Agreement is a bona fide,
      arm's length sale of assets.  Purchaser is unrelated to Seller within
      the meaning of section 4204 of ERISA.

    

    (c)
Contribution
      Base
      Units.  From and after the applicable Closing Date, Purchaser
      agrees that it shall have an obligation to contribute to the Multiemployer
      Pension Plans with respect to the Acquired Facilities excluding the Baltimore
      Leased Facility and the Baltimore Owned Facility for substantially the same
      number of contribution base units as Seller had immediately prior to the
      sale.  Purchaser agrees that the determination of the number of
      contribution base units and the duration of the obligation to maintain such
      contribution base units necessary to satisfy section 4204 shall be made in
      accordance with section 4204 of ERISA and such rules as the respective
      Multiemployer Pension Plans may have adopted, or may adopt, except to the extent
      that Purchaser defeats the application of such rules by waiver or
      challenge.

    

    (d)  During
      the period
      commencing on the first day of the first plan year beginning after the
      applicable Closing Date and ending on the expiration of the fifth such plan
      year
      (the "Contribution Peri­od"), Purchaser shall provide to each
      Multiemployer Pension Plan either a bond, let­ter of credit or an escrow in
      an amount and manner meeting the requirements of section 4204 of
      ERISA.  Notwithstanding anything contained in this Section 3.3(d) to
      the contrary, Purchaser shall not be obligated to provide any bond, letter
      of
      credit or escrow required here­in in the event and to the extent Purchaser
      obtains from the Pension Benefit Guaranty Cor­pora­tion (the
      "PBGC") or the respective Multiemployer Pension Plan a proper variance or
      exemption under section 4204(c) of ERISA and the applicable regula­tions
      thereun­der, provided any and all requirements of such variance or exemption
      are met.  Seller agrees to coop­er­ate with Purchaser in
      connection with any ap­plica­tion for such a vari­ance or exemption
      made by Purchaser to the PBGC and/or to the Multiemployer Pension
      Plans.  The cost of any bond, letter of credit or escrow provided
      under this Section 3.3(d) shall be paid by Seller.

    

    (e)  From
      and after the first day of employment as provided in Section 5.2 hereof, until
      final determination, Seller authorizes Purchaser to initiate arbi­tration,
      litigation or to do any other act which Purchaser deems, in its discretion,
      appro­priate in order to reduce or eliminate any withdrawal liability or any
      escrow or bonding requirement imposed by any of the Multiemployer Pension Plans
      which Purchaser is required to satisfy under the terms of this Section
      3.3.  Seller agrees to reasonably assist Purchaser, at the sole cost
      and expense of Purchaser, in any proceedings commenced in accor­dance with
      this Sec­tion 3.3(e).

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    

    (f)
Attribution
      of Contribution
      History to Purchaser.  Purchaser acknowledges that any withdrawal
      liability of Purchaser to the Multiemployer Pension Plan shall be determined
      as
      if Purchaser had been required to contribute to the Multiemployer Pension Plan
      in the year in which the applicable Closing Date occurs and the four preceding
      plan years the amount that Seller was required to contribute with respect to
      the
      Acquired Facilities excluding the Baltimore Leased Facility and the Baltimore
      Owned Facility for such five plan years.

    

    (g)  If
      Purchaser
      Withdraws Within Five Years.  If Purchaser withdraws from the
      Multiemployer Pension Plan in a complete withdrawal, or in a partial withdrawal
      with respect to the Acquired Facilities excluding the Baltimore Leased Facility
      or the Baltimore Owned Facility, during the first five plan years beginning
      with
      the first plan year beginning after the applicable Closing Date,
      then:

    

    (i)  Purchaser
      agrees that
      Purchaser shall pay the Multiemployer Pension Plan any and all withdrawal
      liability on account of such withdrawal when due;

    

    (ii)  if
      Purchaser fails or
      refuses to pay the Multiemployer Pension Plan any part of its withdrawal
      liability on account of such withdrawal when due, Seller shall have the right
      (but no obligation) to make such payment on behalf of Purchaser;
      and

    

    (iii)  Seller
      agrees that,
      if Purchaser's withdrawal liability to the Multiemployer Pension Plan (if any)
      is not paid, then Seller shall be secondarily liable to the Multiemployer
      Pension Plan for any withdrawal liability that Seller would have had to the
      Multiemployer Pension Plan with respect to the Acquired Facilities except the
      Baltimore Leased Facility and the Baltimore Owned Facility but for section
      4204
      of ERISA.

    

    (h)  If
      Seller is
      Liquidated Within Five Years.  If all or substantially all of
      Seller's assets are distributed, or if Seller is liquidated, during the first
      five plan years beginning with the first plan year beginning after the plan
      year
      in which the applicable Closing Date occurs, then:

    

    (i)  Seller
      agrees to
      provide a bond or amount in escrow equal to the present value of the withdrawal
      liability that Seller would have had as a result of this sale of assets but
      for
      section 4204 of ERISA, unless Seller timely secures a waiver of such requirement
      by the Pension Benefit Guaranty Corporation,

    

    (ii)  such
      bond or escrow
      shall be paid to the Multiemployer Pension Plan if Seller becomes secondarily
      liable to the Multiemployer Pension Plan as described in the preceding section
      and fails or refuses to pay its withdrawal liability, but

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    (iii)  such
      bond shall be
      cancelled or escrow returned to Seller if (1) Seller becomes secondarily liable
      to the Multiemployer Pension Plan as described in the preceding section and
      pays
      its secondary liability to the Multiemployer Pension Plan in full or (2) such
      five plan years have elapsed and Seller has not become secondarily liable to
      the
      Multiemployer Pension Plan as described in the preceding section.

    

    (i)  Indemnification.  Purchaser
      agrees to indemnify Seller against any and all withdrawal liability, including
      interest, penalties and attorney's fees, that is assessed against Seller by
      reason of Purchaser's failure or refusal to comply with any provision of this
      Article, including but not limited to failure or refusal to comply with the
      requirements of section 4204 of ERISA set forth herein and withdrawal within
      five years coupled with failure or refusal to pay the withdrawal liability
      attendant thereto.  Seller agrees to indemnify Purchaser against any
      and all withdrawal liability, including interest, penalties and attorney's
      fees,
      by reason of Seller's failure or refusal to comply with any provision of this
      Article, or if, despite the provisions of this Section 3.3, a partial or total
      withdrawal is triggered by Seller's ceasing to contribute to a Multiemployer
      Pension Plan.

    

    Section
      3.4  Baltimore
      Drivers.  If, at any time, any withdrawal liability is triggered
      with respect to the drivers in Baltimore, A&P shall pay [*]of
      any such
      withdrawal liability.  C&S shall use its commercially reasonable
      efforts to enter into a new agreement with Penske and cause Penske to utilize
      the present Penske drivers so that no withdrawal event is triggered as a result
      of the transfer of the Penske services from A&P to C&S.

    

    ARTICLE
      IV

    REPRESENTATIONS
      AND WARRANTIES

    

    Section
      4.1  Representations and Warranties of
      Seller.  Seller represents and warrants to Purchaser as
      fol­lows (in each case as of the date of this Agreement and as of the
      applicable Closing (that such representations and warranties are true and
      correct in all material respects), unless otherwise stated herein):

    

    (a)  Organization;
      Standing.   A&P is a corporation duly organized, validly
      existing, and in good standing under the laws of the State of
      Maryland.  A&P shall provide information and documentation with
      respect to the type of entity, state of formation and good standing of any
      other
      Seller as requested by Seller or required by the Title Company.

    

    (b)  Authority;
      Binding Effect.  Seller has the requisite corporate power and
      corporate authority to execute and deliver this Agreement and the Related
      Agreements, and to perform its obligations hereunder and thereunder and to
      consummate the transactions

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    contemplated
      hereby and thereby.  The execution, delivery and performance of this
      Agreement and the Related Agreements, and the consummation of the transactions
      contemplated hereby and thereby, have been duly authorized by all necessary
      corpo­rate action on the part of Seller, and no other corporate action or
      proceeding on the part of Seller is required to authorize the execution,
      delivery or performance of, or consummation of the transactions contemplated
      by,
      this Agreement or the Related Agreements.  This Agreement and the
      Related Agreements have been duly executed and delivered by Seller, and are
      the
      valid and binding obligations of Seller, enforceable against Seller in
      accordance with their terms.

    

    (c)  Equipment
      Leases.  None of the equipment leases which form a part of the
      As­sumed Con­tracts itemized on Exhibit B-1 and Exhibit
      B-2 annexed hereto are capi­tal­ized on the books of
      Seller.

    

    (d)  Title
      to the Acquired Assets.  Seller has good title to the Transferred
      Inventory, Non-Acquired Facilities Inventory and Equipment Assets, free and
      clear of any and all Liens, except for UCCs that will be released prior to
      the
      applicable Closing.

    

    (e)  Title
      to the Acquired Facilities.

    

    (i)  (A)
      Seller has good, valid and insurable fee simple title to the Dunmore Owned
      Facility, the Baltimore Owned Facility and the New Orleans Owned Facility,
      free
      and clear of all Liens, and sub­ject only to Per­mit­ted
      Encum­branc­es; (B) Seller owns good and valid lease­hold
      inter­ests in the Leases free and clear of all Liens;

    

    (ii)  Seller
      is not a party to, or obligated under any op­tion, right of first
      refus­al or other con­trac­tu­al right to sell, dispose of or
­lease any of the Ac­quired Facil­ities or any portion there­of
      or inter­est there­in to any person or entity other than
      Purchaser;

    

    (iii)  except
      as may be provided in the docu­ments, instruments and other items referred
      to in the definition of Permitted Encumbrances, there is no con­tract or
      agreement to which Seller is a party, other than the As­sumed Con­tracts
      and the Leases, affecting any of the Ac­quired Facil­i­ties for
      which Purchaser will be responsi­ble or liable after the applicable Closing,
      or if Purchaser would be liable, which are not terminable on thirty (30) days
      notice without premium or penalty;

    

    (iv)
      there are no leases or other occupancy agreements to which Seller or an
      Affiliate of Seller is a party, pursu­ant to which any per­sons or
      enti­ties other than Seller or an Affiliate of Seller has a pos­sessory
      interest in any of the Acquired Facili­ties;

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    (v)
      Seller has not received any written notice of any pend­ing, threatened or
      con­tem­plated condem­na­tion proceed­ing af­fecting any
      of the Acquired Facili­ties or any part there­of or of any sale or other
      dispo­si­tion of any of the Acquired Facili­ties or any part
      there­of in lieu of con­dem­nation;

    

    (vi)  except
      as set forth on Schedule 4.1(e)(vi), to Seller's Knowledge, Seller has not
      re­ceived any writ­ten notic­es from any Gov­ern­mental
      Au­thori­ty stat­ing or alleg­ing that any Improve­ments
      have not been con­structed in compliance with law or are being operated in
      violation of applicable law;

    

    (vii)
      except as set forth on Schedule 4.1(e)(vii), to Seller's Knowledge, no
      writ­ten notice has been re­ceived by Seller from any Govern­mental
      Authori­ty requiring or advising as to the need for any repair, alteration,
      restoration or improve­ment in connec­tion with each Ac­quired
      Facil­i­ty.

    

    (viii)  as
      to the Islip Leased Facility, the Baltimore Leased Facility, and the New Orleans
      Leased Facility:

    

    (1)  the
      Islip Facility Lease, the Baltimore Facility Lease and the New Orleans Facility
      Lease (together, the "Leas­es") are enforceable and binding
      obligations and are in full force and effect and Seller has not received any
      written notice, that any default, or condition which with the passage of time
      would constitute a de­fault, exists under the Leases, except such notices as
      to which the alleged de­faults have been cured or otherwise
      resolved.  Further, as of the execution of this Agreement, Seller has
      not received notice from the landlord of the New Orleans Lease that landlord
      is
      exercising its early termination right.  Seller will notify Purchaser
      if it receives such notice at any time.  To Seller's Knowledge, no
      notice has been given of and no default under the Leases currently exists,
      nor
      to Seller's Knowledge, does any condition which with the passage of time would
      constitute a default exist.

    

    (2)  true,
      correct and complete copies of the Leases set forth on Exhibit
      J  have been delivered to Purchaser by Seller and
      such  Leases have not been amended or modi­fied except as set
      forth therein;

    

    (f)  Inventory
      Statements.  Seller will deliver to Purchaser the Inventory List
      which will accurately and fairly reflect in all material respects the Actual
      Cost of the Trans­ferred Inven­to­ry and the Non-Acquired Facilities
      Inventory.

    

    (g)  Inventory
      Quality.  All of the Trans­ferred Inventory shall, as of the
      applicable Procurement Conversion Date and the Non-Acquired Facilities Inventory
      shall, as of the applicable Closing Date, be:  (i) Readily
      Saleable Merchandise; (ii) in conformity with

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    warranties
      given by C&S to Seller under the Supply Agree­ment; and (iii) not
      sub­ject to recall by the manu­fac­turer or dis­tributor or any
      govern­mental or regu­latory agency and not be the subject of any notice
      by any such govern­men­tal or regula­tory agency not to
      dis­tribute such prod­uct.

    

    (h)  Quality
      of Acquired
      Assets.  The Acquired Assets are in good condition and repair
      (ordinary wear and tear excepted) for their continued use as they have been
      used, and in good condition (ordinary wear and tear excepted) for the continued
      conduct of the busi­ness to which they relate, except as set forth in
      Schedule 4.1(h).   If, in the normal course of the operation of
      the Business, consistent with Section 11.1 and as otherwise set forth in this
      Agreement, prior to the applicable Closing, certain of the Equipment Assets
      suffer destruction ("Damaged Equipment"), Seller shall repair or replace
      any such Damaged Equipment with items of comparable quality and condition;
      or,
      provided such Damaged Equipment does not individually or in the aggregate have
      a
      material impact on the Business, Seller shall delete such Damaged Equipment
      from
      the Equipment Assets and the Purchase Price will be equitably adjusted to
      reflect such deletion.

    

    (i)  Acquired
      Assets.  The Acquired Assets and the leased equipment listed on
      the attached Exhibit F constitute all of the assets materially necessary
      for Seller's warehousing and transportation operations currently conducted
      at
      and from the Acquired Facilities (the "Business").

    

    (j)  Litigation.  There
      is no claim, action, suit, proceeding, investigation, or inquiry by or before
      any court of competent jurisdiction or governmen­tal or regulatory agency,
      whether at law or in equity ("Litigation"), pending or, to Seller's
      Knowledge, threatened by or against Seller or any of its Affili­ates with
      respect to, or affecting, the Acquired Assets, or which challenges or otherwise
      questions this Agree­ment, or any action taken or to be taken pursuant
      hereto or in connection with the purchase and sale of the Ac­quired Assets,
      and there is no judgment, order or decree of court of competent jurisdiction
      or
      governmental or regulatory agency with respect to the Acquired Assets, except
      as
      set forth on Schedule 4.1(j), and except as will not interfere with the Business
      operation or Purchaser's use of the Acquired Assets. Seller shall endeavor
      to
      list all of Seller's outstanding workers' compensation, slip and fall and
      automobile liability cases on Schedule 4.1(j), provided an inadvertent failure
      to list a case shall not be a default under this Agreement, subject to the
      following sentence.  Seller shall indemnify Purchaser with respect to
      any Losses relating in any way to the Litigation, whether or not it is stated
      on
      Schedule 4.1(j).

    

    (k)  Absence
      of Conflicting Agreements.  The execution and delivery by Seller
      of this Agreement does not, and the perfor­mance by Seller of this
      Agree­ment and the consummation of the transactions contemplat­ed hereby
      will not, (i) conflict with or violate the articles of organization or operating
      agreement, in each case as currently in effect, of Seller,

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (ii) conflict
      with or violate any law applicable to Seller or by or to which Seller is bound
      or subject or (iii) result in any breach of, or constitute a default (or an
      event that with notice or lapse of time or both would constitute a de­fault)
      under, or give to any person or entity any right of termination, amendment,
      acceleration or cancellation of, or require payment under, or result in the
      creation of a Lien on any of the Acquired Assets under, any note, bond,
      mortgage, indenture, contract, agreement, arrange­ment, commitment, lease,
      license, permit, franchise or other instrument or obligation to which Seller
      is
      a party or by or to which Seller is bound or subject or which relate to the
      Acquired Assets, except as expressly set forth herein.

    

    (l)  No
      Consents Required.  Except as set forth on Schedule 4.1(l), no
      con­sent, ap­prov­al, waiv­er, li­cense, order,
      autho­ri­zation, govern­mental consent or permit of, or
      registra­tion, declara­tion, or filing with, or notice to, any
      Governmen­tal Authority or any other person or entity, is re­quired in
      connec­tion with the execu­tion, deliv­ery, and perfor­mance by
      Seller of this Agreement, or the consum­mation by Seller of the
      trans­actions contemplated hereby.

    

    (m)  Absence
      of Liabilities.  Seller has no material liabilities or obligations
      arising from or relating to the Acquired Assets and the business and operations
      conducted in connection therewith (whether absolute, accrued, fixed, contingent,
      liquidated, unliquidated or otherwise, and whether due or to become due), except
      for liabilities and obligations incurred in the ordinary course of business
      consistent with past practice, which ordinary course liabilities (other than
      Assumed Liabilities) shall be retained by Seller, and except for any mortgages
      or UCCs which will be released prior to the applicable Closing.

    

    (n)  Compliance
      with Law.  Seller is in substantial compliance with all applicable
      laws and regulations of federal, state and local governments (and all agencies
      thereof) with respect to the operations and activities of the Acquired
      Facilities and the Acquired Assets, and no action, suit, proceeding, hearing,
      investigation, charge, complaint, claim, demand, or notice has been threatened,
      filed or commenced against Seller alleging any such failure to comply, except
      as
      set forth on Schedule 4.1(n).

    

    (o)  Environmental.  Seller
      and its Affiliates have delivered to Purchaser true and correct copies of any
      environmental studies within its possession, relating to the Acquired Facilities
      and Acquired Assets. The environmental issues of which Seller has Seller's
      Knowledge are listed on Schedule 4.1(o).  Seller's indemnity
      obligation shall include but not be limited to the matters set forth on Schedule
      4.1(o).

    

    (p)  Labor
      Matters.

    

    (i)  (x)
      Schedule 4.1(p)(i)(A) is a true, correct and complete list, as of the date
      shown
      thereon, of the Affected Employees and each such employee's site of

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    employment,
      department, hiring date and salary.  Except as set forth on Schedule
      4.1(p)(i)(B), there are no employment agreements, sev­erance agreements or
      severance plans and poli­cies with respect to the Affected Employees; and
      (y) to the knowledge of any director level, vice president or more senior
      officer of Seller, there are no labor or employment dis­putes or claims
      involving any Affected Employ­ees pending or threat­ened against Seller
      or its Affiliates.

    

    (ii)  Schedule
      4.1(p)(ii) is a true, correct and complete list of each pension plan, fund
      or
      program (within the meaning of section 3(2) of ERISA) which is a "Multiemployer
      Pen­sion Plan," as defined in section 3(37) of ERISA, maintained or
      contributed to or required to be contributed to by Seller or any ERISA Affiliate
      for the benefit of any Affected Em­ployee (the "Multiemployer Pension
      Plans").

    

    (iii)  No
      event has occurred with respect to any Affected Employees which could result
      in
      a "partial withdrawal" under section 4205 of ERISA with respect to any
      Multiemployer Pension Plan.  Attached hereto as Schedule 4.1(p)(iii)
      is a schedule of contributions made by Seller and its ERISA Affiliates to the
      respective Multiemployer Pension Plans for the operations of the Business
      conducted at the Acquired Facilities except the Baltimore Leased Facility and
      the Baltimore Owned Facility for the most recent five (5) plan
      years.  With respect to the Multiemployer Pen­sion Plans, to the
      Knowl­edge of Seller, the withdraw­al liability of Seller and their
      ERISA Affiliates, com­puted as if a complete withdraw­al by Seller and
      the ERISA Affiliates with respect to the Acquired Facilities only (which does
      not include Detroit) except the Baltimore Leased Facility and the Baltimore
      Owned Facility had oc­curred under the Multiemployer Pen­sion Plans on
      the date hereof, would not exceed twenty-five million dollars ($25,000,000.00)
      in the aggregate.

    

    (q)  Taxes.

    

    (i)
      To
      Seller's Knowledge, all material Tax Returns required to be filed on or prior
      to
      the applicable Closing Date or Delayed Closing by or with respect to the
      Acquired Assets have, within the time and manner prescribed by law, been duly
      filed with the appropriate tax authorities.  To Seller's Knowledge,
      all such Tax Returns are true, correct, and complete in all material respects
      and all Taxes due and payable with respect to such Tax Returns have been paid.
      To Seller's Knowledge, Seller has timely paid or caused to be paid all Taxes
      required to be paid for the portion of the taxable year or period through and
      including the applicable Closing Date in the case of any Straddle
      Period.  To the extent that Seller's Knowledge is not accurate, Seller
      shall file any necessary Tax Returns and pay any Taxes, and shall indemnify
      Purchaser from any Losses (as defined herein) on account thereof.

    

    (ii)
      There are no Liens for Taxes upon any of the Acquired Assets except for
      statutory liens for Taxes not yet due for which Seller shall be
      responsible.

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    (r)   No
      Reliance.  The Seller is sophisticated and knowledgeable with
      respect to the grocery, perishables, frozen food and merchandise distribution
      business, regulatory and political matters related to such business and has
      performed its own independent investigation and analysis, with due diligence,
      of
      the sale of the Acquired Assets and has performed its own independent assessment
      of the risks and potential returns of selling the Acquired
      Assets.  The Seller has extensive financial experience with sales such
      as the sale contemplated by this Agreement and therefore has the ability to
      protect its own interests in connection with this Agreement.  Nothing
      in this provision shall diminish any liability, obligation or duty of
      indemnification or any other undertaking of Purchaser or C&S as set forth in
      this Agreement.  Seller further acknowledges that neither Purchaser
      nor any representative thereof has given any investment, legal or other advice
      or rendered any opinion as to whether the sale of the Acquired Assets is
      prudent.

    

    (s)  No
      Knowledge of Breach.  Seller has no knowledge of any breach by
      Purchaser of any representation or warranty made by Purchaser in this Agreement
      or any condition or circumstance that would excuse Seller from its timely
      performance of its obligations hereunder.

    

    Section
      4.2  Representations and Warranties of
      Purchaser.  Purchaser and C&S, as applicable, represent and
      warrant to Seller as fol­lows (in each case as of the date of this Agreement
      and as of the applicable Closing (that such representations and warranties
      are
      true and correct in all material respects), unless otherwise stated
      herein):

    

    (a)  Organization;
      Standing.  Purchaser is an affiliate of C&S and is a limited
      liability company duly organized, validly existing and in good standing under
      the laws of the State of Delaware.  Purchaser is not a tax-exempt
      entity (within the meaning of Section 168(h) of the Code) or a debtor or
      debtor-in-possession in a voluntary or involuntary bankruptcy proceeding. C&S
      is a corporation, validly existing and in good standing under the laws of the
      State of Vermont.

    

    (b)  Authority;
      Binding Effect. Purchas­er and C&S each have the requisite corporate
      or company power and au­thori­ty to exe­cute and deliver this
      Agreement and the Related Agreements and to perform their obli­gations
      hereunder and thereunder and to consummate the transac­tions contemplated
      hereby and thereby.  The execution, deliv­ery and perfor­mance
      of this Agreement and the Related Agreements, and the consumma­tion of the
      transactions contemplated hereby and thereby, have been duly autho­rized by
      all necessary corporate or company action on the part of each of Purchaser
      and
      C&S, and no other corpo­rate or company action or proceed­ing on the
      part of Purchaser or C&S is re­quired to authorize the execu­tion,
      delivery and perfor­mance of, or consumma­tion of the transactions
      contemplat­ed by, this Agreement and the Related

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    Agreements.  This
      Agreement and the Related Agreements have been duly executed and delivered
      by
      each of Purchaser and C&S and are the valid and binding obligation of each
      Purchaser, enforceable against each Purchaser in accordance with their
      terms.

    

    (c)  No
      Consent Required.  Except as set forth on Schedule 4.1(l), no
      con­sent, ap­prov­al, waiv­er, li­cense, order,
      autho­ri­zation, govern­mental consent or permit of, or
      registra­tion, declara­tion, or filing with, or notice to, any
      Governmen­tal Authority or any other person or entity, is re­quired in
      connec­tion with the execu­tion, deliv­ery, and perfor­mance by
      Purchaser of this Agreement, or the consum­mation by Purchaser of the
      trans­actions contemplated hereby.

    

    (d)  Absence
      of Conflicting Agreements.  The execution and delivery by
      Purchaser and C&S of this Agree­ment does not, and the perfor­mance
      by Purchaser and C&S of this Agree­ment and the consummation of the
      transactions con­templat­ed hereby will not, (i) conflict with or
      violate the articles of organization or operating agreement or other
      organi­zational document, in each case as currently in ef­fect, of
      Purchaser or C&S, (ii) conflict with or violate any law appli­cable
      to Purchaser or C&S or by or to which Purchaser or C&S is bound or
      subject or (iii) result in any breach of, or constitute a default (or an event
      that with notice or lapse of time or both would consti­tute a de­fault)
      under any note, bond, mortgage, inden­ture, con­tract, agreement,
      arrange­ment, commitment, lease, li­cense, permit, fran­chise or
      other instrument or obliga­tion to which Purchas­er or C&S is a
      party or by or to which Pur­chaser or C&S is bound or
      subject.

    

    (e)  Litigation.  There
      is no injunction or restraining order by any court of competent
      jurisdic­tion or Gov­ern­men­tal Authority which prohibits the
      trans­ac­tions contemplated by this Agree­ment.

    

    (f)   No
      Financing.  The Purchaser will have adequate funds at its disposal
      to finance the Purchase Price on the date of the applicable
      Closing.  The consummation of the purchase described in this Agreement
      shall not be subject to Purchaser's ability to obtain financing.

    

    (g)  No
      Reliance.  The Purchaser and C&S, considered as a whole, are
      sophisticated and knowledgeable with respect to the grocery, perishables, frozen
      food and merchandise distribution business, regulatory and political matters
      related to such business and have performed their own independent investigation,
      with due diligence, of the investment represented by the purchase of the
      Acquired Assets and have performed their own independent assessment of the
      risks
      and potential returns of acquiring the Acquired Assets.  The Purchaser
      and C&S, taken as a whole, have extensive financial experience with
      investments such as the investment contemplated by this Agreement and therefore
      have the ability to protect their own

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    interests
      in connection with this Agreement.  Nothing in this provision shall
      diminish any liability, obligation or duty of indemnification or any other
      undertaking of Seller as set forth in this Agreement.  Purchaser
      further acknowledges that neither Seller nor any representative thereof has
      given any investment, legal or other advice or rendered any opinion as to
      whether the purchase of the Acquired Assets is prudent.

    

    (h)  No
      Knowledge of Breach.  Neither Purchaser nor C&S has knowledge
      of any breach by Seller of any representation or warranty made by the Seller
      in
      this Agreement or any condition or circumstance that would excuse Purchaser
      or
      C&S from its timely performance of its obligations hereunder.

    

     

    ARTICLE
      V

    EMPLOYEE
      MATTERS

    

    Section
      5.1  Responsibility for Employees.   Purchaser
      shall assume Seller's liability for accrued vacation, ­any and all other
      accrued paid time off for the respective Affected Employ­ees hired by
      Purchaser.  Seller will pay to Purchaser at the applicable Closing an
      amount equal to such accrued vacations and any ac­crued
      lia­bil­i­ty for paid time off.  A list of such accrued
      liabilities with respect to each hired Affected Employee is attached as Schedule
      5.1.  To the extent that such payment is an esti­mated amount at
      the applicable Closing, it shall be paid as estimat­ed at the applicable
      Closing and adjust­ed by the Parties within 30 days after the applicable
      Closing.  Following the applicable Closing, Purchaser will provide
      Seller with reasonable access to the hired Affected Employee files transferred
      to Purchaser at the applicable Closing.

    

    Section
      5.2  Offers of Employment.   Purchaser will
      offer employment to all of the Affected Employ­ees who are covered by the
      Assumed Collec­tive Bargaining Agreements.  Such offers of
      employment will be upon the terms set forth in the applicable As­sumed
      Col­lec­tive Bar­gaining Agreement.  Purchaser shall
      interview the non-union Affected Employees and shall have the right but not
      the
      obligation to hire any non-union Affected Employees.  Purchaser shall
      provide health benefits commencing July 10, 2005 to any hired non-union Affected
      Employees.  With respect to Affected Employees who have company
      provided health insurance and who are hired by Purchaser, excluding those having
      health insurance through a union health & welfare fund, the Parties allocate
      to Purchaser the responsibility to make COBRA continuation coverage available
      to
      such Affected Employees pursuant to 26 C.F.R § 54.4980B-9, Q&A
      7.

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

    

    Section
      5.3  Freshtown and Edison.  Purchaser has not agreed,
      nor is Purchaser obligated to hire any of the employees of Seller, whether
      union
      or non-union, employed at the Freshtown Facility or Edison Facility, nor has
      Purchaser agreed to assume any of the collective bargaining agreements with
      any
      labor union representing employees that are employed at the Freshtown Facility
      or Edison Facility by Seller.  Purchaser shall have no obligation
      (except with respect to the transportation of the Non-Acquired Facilities
      Inventory as set forth in Section 8.4), for any costs or liabilities associated
      with closing the Edison Facility or the Freshtown Facility, including, without
      limitation, due to severance obligations, withdrawal liability and any other
      such labor-related closing costs.

    

    ARTICLE
      VI

    CONDITIONS
      TO CLOSING

    

    Section
      6.1  Conditions to Obligations of Purchaser.  The
      obligations of Purchaser to consummate the transactions contemplated by this
      Agreement shall be subject to the fulfillment at or prior to the applicable
      Closing of the following conditions (any one or more of which may be waived,
      to
      the extent permitted by applicable law, in whole or in part by
      Purchaser):

    

    (a)  Accuracy
      of Representations and Warranties.  The representations and
      warranties of Seller set forth in this Agreement shall be true and correct
      in
      all material respects as of the date hereof and, except to the extent such
      represen­tations and warranties relate to an earlier date, at and as of the
      applicable Closing Date or Delayed Closing as though made on such date, provided
      Seller shall be given an opportunity to cure such breach prior to the applicable
      Closing, and if such breach cannot be cured prior to applicable Closing, the
      parties will cooperate to work out a solution.

    

    (b)  Performance
      of Covenants.  Seller shall have performed and com­plied in
      all material respects with all agreements, obligations, covenants and conditions
      required by this Agreement to be performed or complied with by it at or prior
      to
      the applicable Closing.

    

    (c)  Consents
      to Assignment of Certain Contracts.  Notwithstanding any provision
      hereof to the contrary, Seller shall have obtained and delivered to Purchaser
      all consents neces­sary to assign the Material Assumed Contracts in form and
      sub­stance rea­son­ably satis­fac­to­ry to Purchaser, or
      the third par­ties to any Material As­sumed Con­tracts
      requir­ing such consent shall have agreed in writ­ing to termi­nate
      such Material Assumed Con­tracts (without penalty to Purchaser) and shall
      have en­tered into a substan­tially similar agreement with Purchaser,
      each of which shall be in full force and effect and the valid and binding
      obli­gation of each party there­to.  The Material Assumed
      Contracts are listed on Exhibit B-3.  Seller shall use good
      faith efforts to obtain consents for all Assumed Contracts set forth on
Exhibit B-1.  Any

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    breach
      of
      the Supply Agreement by Purchaser which is due to Seller's failure to deliver
      consent to assign an Assumed Contracts shall be excused.

    

    (d)  Related
      Agreements.  Each of the Related Agreements shall have been
      executed by the respective parties thereto­ and the Relat­ed
      Agree­ments shall be in full force and effect and shall have become
      effec­tive in accordance with their terms.

    

    (e)  Title
      Insurance.  Title to the Dunmore Owned Facility, the New Orleans
      Owned Facility, the Baltimore Owned Facility and the Leased Facilities shall
      at
      the applicable Closing be good and insurable as such under A.L.T.A. Owner or
      Leasehold Title Policies by any nationally recognized title insurance company
      selected by Purchaser in its sole and absolute discretion (the "Title
      Company") at regular rates, free and clear of all Liens and without
      excep­tions, disclaimers of liability or objec­tions except Permitted
      Encumbrances.  As a condi­tion to each applicable Clos­ing,
      the Title Compa­ny shall insure each of the Dunmore Owned Facility, the New
      Orleans Owned Facility, the Baltimore Owned Facility and the Leased
      Facili­ties under the terms described above, which title insurance shall be
      paid for by Purchaser.

    

    (f)  Estoppels.  Purchaser
      shall have received such estoppel certificates as are required under
      Sec­tion 7.2(h) from the land­lords under the Leas­es or the Seller
      certificates, dated within thirty (30) days of the applicable
      Closing.

    

    (g)  Certificates
      of Occupancy.  Purchaser shall have received from Seller copies of
      all cur­rent certificates of occupancy for each of the Acquired
      Facili­ties.  To the extent Seller cannot deliver a certificate of
      occupancy at the applicable Closing, Seller shall proceed with obtaining such
      certificate of occupancy and shall deliver same to Purchaser as soon as
      possible.  Purchaser shall cooperate with Seller as reasonably
      requested.  Seller shall indemnify Purchaser from any Losses resulting
      from Purchaser's failure to possess certificates of occupancy, unless such
      failure is caused by Purchaser.

    

    Section
      6.2  Conditions to Obligations of Seller.  The
      obligations of Seller to consummate the transactions contem­plated by this
      Agreement shall be subject to the fulfill­ment at or prior to the applicable
      Closing of the following condi­tions (any one or more of which may be
      waived, to the extent permitted by applicable law, in whole or in part by
      Seller):

    

    (a)  Accuracy
      of Representations and Warranties.  The representations and
      warranties of Purchaser set forth in this Agreement shall be true and correct
      in
      all material respects as of the date hereof and, except to the extent such
      representations and war­ranties relate to an earlier date, as of the
      applicable Closing as though made on such date, provided Purchaser shall be
      given an opportunity to cure such breach prior to the applicable Closing, and
      if
      such breach cannot be cured prior to the applicable Closing, the Parties will
      cooperate to work out a

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    solution.

    

    (b)  Performance
      of Covenants.  Purchaser shall have performed and complied in all
      material re­spects with all agreements, obligations, cove­nants and
      conditions required by this Agreement to be performed or complied with by it,
      at
      or prior to the applicable Closing.

    

    (c)  Related
      Agreements.  Each and every one of the Related Agreements shall
      have been executed by the respective parties thereto­­ and such
      Relat­ed Agree­ments shall be in full force and effect and shall have
      become effec­tive in accordance with their terms.

    

    (d)  Purchase
      Price.  Purchaser shall pay the Purchase Price (excluding the
      Transferred Inventory and Non-Acquired Facilities Inventory) due at the
      applicable Closing.  Purchaser shall pay for the Equipment Assets on
      the Procurement Conversion Date for the applicable Acquired
      Facility.

    

    ARTICLE
      VII

    CLOSING

    

    Section
      7.1  The Closing.  The closing (the "Closing")
      of the transactions contemplated hereby shall take place on July 10, 2005 with
      respect to any labor (including ERISA, COBRA), employee or employment-related
      matters (including, without limitation, the Assumed Collective Bargaining
      Agreements) and with respect to the Equipment Assets and the Non-Acquired
      Facilities Inventory, and on the applicable Procurement Conversion Date (each
      such date referred to herein as a Closing) with respect to the Transferred
      Inventory, Assumed Contracts and Acquired Facilities (including deeds, leases
      or
      sublease)  at Seller's executive offices or other mutually agreed to
      location, or if the conditions to the applicable Closing set forth in
      Arti­cle VI shall not have been fulfilled or, to the extent permitted by
      applicable law, waived by such date, as soon as practicable (but in no event
      less than five (5) busi­ness days) after such conditions shall have been
      ful­filled or satisfied, or on such other date or at such other time as the
      Parties may agree in writing, subject to Section 10.1(c).  Purchaser
      may elect to assume certain of the Assumed Contracts (for example, the tractor
      and trailer leases) on July 10, 2005, provided Seller shall be responsible
      for
      paying or reimbursing Purchaser for any and all costs, liability and expenses
      associated with such Assumed Contracts prior to the applicable Procurement
      Conversion Date.  Notwithstanding anything to the contrary stated
      herein, Purchaser may elect in its sole discretion, but so long as there is
      a
      valid business reason for doing so (including but not limited to an issue with
      respect to the timing of registrations and/or taxes), and which shall be more
      than Purchaser's unsubstantiated desire, to delay the transfer of title (a
      “Delayed Closing”) with respect to all or some of the Equipment Assets or
      Assumed Contracts for a period of up to six (6) months, provided that there
      shall be no reduction in Purchase Price to

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    be
      paid
      at the applicable Closing and all other conditions to the applicable Closing
      shall be met by Seller and Purchaser.  In the event of a Delayed
      Closing, all bills of sale, titles and other documents necessary to transfer,
      assign, convey and deliver the Equipment Assets or Assumed Contracts subject
      to
      the Delayed Closing shall be signed at the applicable Closing and shall be
      held
      in escrow with the law firm of Drinker Biddle & Reath LLP (“DBR”), to be
      released to Purchaser at Purchaser's instructions to DBR.

    

    Section
      7.2  Seller's Obligations.  At the applicable Closing
      or Delayed Closing, as applicable, Seller shall deliver or cause to be delivered
      to the Purchaser or its designee the following:

    

    (a)  All
      appropriate transfer documents including any bills of sale necessary to sell,
      transfer, assign, convey and deliver to the Purchaser or its designee the
      applicable Acquired Assets, free and clear of any and all Liens;

    

    (b)  A
      special warranty deed ("Dunmore Deed") in the form of Exhibit G-1
      with covenants against grantor's acts sufficient to convey to the Purchaser
      or a
      designee title to the Dunmore Owned  Facility, with such conveyance
      made subject only to the Permitted Encumbrances.  The Dunmore Deed
      shall describe the property by metes and bounds using the description contained
      on Exhibit C hereto (or, if Purchaser obtain an updated survey certified
      by the surveyor to Seller, using the description contained in the updated
      survey);

    

    (c)  A
      special warranty deed ("New Orleans Deed") in the form of Exhibit
      G-2 with covenant's against grantor's acts sufficient to convey to the
      Purchaser or a designee title to the New Orleans Owned  Facility, with
      such conveyance made subject only to the Permitted Encumbrances.  The
      New Orleans Deed shall describe the property by metes and bounds using the
      description contained on Exhibit C-4 hereto (or, if Purchaser obtains an
      updated survey certified by the surveyor to Seller, using the description
      contained in the updated survey);

    

    (d)
      Affidavits of title in such form as may be reasonably required by Purchaser's
      title insur­ance company to allow such company to issue leasehold or owner
      title insurance policies in favor of the Purchaser or its designee with respect
      to the Acquired Facilities subject only to the Permitted
      Encum­branc­es;

    

    (e)  An
      affidavit that Seller is not a "foreign person" within the meaning of Section
      1445(b)(2) of the Internal Revenue Code;

    

    (f)  The
      Related Agreements;

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

    

    (g)  Any
      and all transfer tax returns or withholding certificates required to be filed
      in
      connection with the transfer of the Leases or Owned Facilities;

    

    (h)  Estoppel
      certificates from the landlords under the Leases or in the alternative, Seller
      shall provide a certificate regarding the substance of each estoppel not
      deliverable from certain landlords under the Leases.  Such certificate
      shall certify that: (i) the lease is in full force and effect; (ii) there are
      no
      defaults thereunder, or any conditions that with the passage of time would
      constitute a default thereunder; (iii) the amount of the monthly or annual
      rent
      payable thereunder; (iv) the amount of additional rent payable thereunder;
      and
      (iv) the beginning and end dates of term of the lease, together with any
      available extension options.  In the event Seller is unable to obtain
      one or more landlord estoppels, Seller shall indemnify, reimburse, hold harmless
      and defend Purchaser and its Affiliates, for, from and against any and all
      actual damages (including, without limitation reasonable attorneys’ fees and
      expenses incurred, but excluding any consequential damages) to the extent
      arising, directly or indirectly, out of any inaccuracy reflected in such
      certificate.  Seller’s obligations hereunder shall survive the
      applicable Closing;

    

    (i)  Written
      consents from third parties under any of the Material Assumed
      Contracts.  Seller shall indemnify Purchaser from any and all
      liability, direct or indirect, that might ensue from such consent not given,
      and
      such indemnification shall not be subject to any minimum threshold as set forth
      in Section 9.6.

    

    (j)  A
      counterpart original of the closing statement, setting forth the Purchase Price,
      the closing adjustments and application of the Purchase Price as
      adjusted;

    

    (k)  All
      other documents and papers reasonably requested by Purchaser to effect the
      transactions contemplated hereby, including, without limitation, transfer tax
      returns, bills of sale, the Assumed Contracts, and any other transfer documents
      requiring execution by Seller to effect the transactions contemplated
      herein;

    

    (l)  an
      officer's certificate from Seller stating that all representations and
      warranties set forth in Section 4.1 remain true and correct in all material
      respects as of the applicable Closing or the Delayed Closing, as applicable;
      and

    

    (m)  A
      special warranty deed ("Baltimore Deed") in the form of Exhibit
      G-3 with covenants against grantor's acts sufficient to convey to the
      Purchaser or a designee title to the Baltimore Owned  Facility, with
      such conveyance made subject only to the Permitted Encumbrances.  The
      Baltimore Deed shall describe the property by metes and bounds using the
      description contained on Exhibit C-5 hereto (or, if Purchaser obtains an
      updated survey certified by the surveyor to Seller, using the description
      contained in the updated survey);

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    

    Section
      7.3  Purchaser's Obligations.  At the applicable
      Closing, or the Delayed Closing as applicable, the Purchaser shall deliver
      to
      Seller the following:

    

    (a)
      the
      Purchase Price for the Acquired Assets being transferred at such Closing, except
      that if such Closing occurs on a Saturday, the funds will be wired to Seller
      on
      the following Monday and the deeds and Lease Assignments and other documents
      to
      be conveyed at such Closing shall be held in escrow until the applicable amount
      of the Purchase Price is paid.  Further, Purchaser shall not pay for
      the Equipment Assets until the Procurement Conversion Date for the applicable
      Acquired Facility and shall pay for the Non-Acquired Facilities Inventory and
      the Transferred Inventory in accordance with Sections 8.5 and 8.6 of this
      Agreement;

    

    (b)  all
      Related Agreements and all other documents and papers reasonably requested
      by
      Seller to effect the transactions contemplated hereby, including, without
      limitation, transfer tax returns, bills of sale, an assumption agreement with
      respect to the applicable Assumed Liabilities (that is consistent with the
      terms
      of this Agreement) and any other transfer documents requiring execution by
      Purchaser to effect the transactions contemplated herein;

    

    (c)  Any
      and all transfer tax returns or withholding certificates required to be filed
      in
      connection with the transfer of the Leases or Owned Facilities.

    

    (d)  a
      counterpart original of the closing statement setting forth the Purchase Price,
      the closing adjustments and application of the Purchase Price as adjusted;
      and

    

    (e)
      an
      officer's certificate from Purchaser and C&S stating that all
      representations and warranties set forth in Section 4.2 remain true and correct
      in all material respects as of the applicable Closing or Delayed Closing, as
      applicable.

    

    

    ARTICLE
      VIII

    CERTAIN
      ADDITIONAL COVENANTS

    

    Section
      8.1  Further Assurances.

    

    (a)  At
      any time and from time to time, without further consider­ation, the Parties
      shall take all action and do all things as may reasonably be requested and
      shall
      each use their commercially reasonable ef­forts in order to satisfy the
      conditions to the applicable Closing and to con­sum­mate and make
      effec­tive the trans­ac­tions con­tem­plated by this
      Agree­ment, includ­ing, without limi­tation, obtain­ing all
      re­quired consents of third parties and approvals of all requisite
      Govern­mental Authorities.

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    

    

    (b)  If
      at any time after the applicable Closing any fur­ther action is
      neces­sary or desirable to carry out the purpos­es of this Agreement
      (including, without limi­ta­tion, the trans­fer of the Acquired
      Assets free and clear of any Liens), each of the Parties will take such further
      action (in­cluding the execution and delivery of such further
      in­structions and documents) as the other Party reasonably may request, all
      at the sole cost and expense of the requesting Party (unless the requesting
      Party is entitled to indemnifica­tion therefore under this
      Agree­ment).

    

    Section
      8.2  Reasonable Access.  Until the applicable
      Closing, Seller will cause its offi­cers and employees to afford Purchaser
      and its repre­sentatives (including, without limitation,
      envi­ron­mental consultants and engineers) with access to the Acquired
      Facilities and its employees thereat, and a full oppor­tunity to
      con­duct due diligence of the Acquired Facili­ties and to exam­ine
      and in­spect the Ac­quired As­sets, by conduct­ing such studies
      (including, at Purchaser's option, Phase I stud­ies for one or more Acquired
      Facility and Phase II studies for any Acquired Facil­ity if the Phase I
      study indicates that it is appropri­ate to conduct a Phase II study on such
      Acquired Facility and the landlord of such Acquired Facility consents to such
      a
      study if consent is required under the Leases) and taking such sam­ples from
      the each of the Acquired Facilities as Pur­chas­er and its
      repre­sen­ta­tives deem desir­able.  Pur­chaser
      agrees that it will cause its envi­ron­mental con­sultants and
      engineers to conduct their stud­ies, examina­tions and inspections of
      the Acquired Facili­ties during normal business hours and in a manner
      de­signed to cause minimal interference to the operations conducted at the
      Acquired Facilities and in  a manner designed to preserve the
      confidential nature of this transaction.  In addition, Purchaser will
      use its best efforts to restore the Ac­quired Facilities to their
      pre-existing condition as a result of any damage (e.g. drill­ing of
      holes for environ­mental studies) caused by the studies or examina­tions
      con­ducted by Purchaser's environ­mental consultants and
      engineers.  From and after the applicable Closing, Purchaser will
      cause its offi­cers and employees to afford Seller and its
      repre­sentatives (including, without limitation, envi­ron­mental
      consultants and engineers) with access to the Acquired Facilities and its
      employees thereat, so that Seller can remedy environmental and maintenance
      issues, including but not limited to the tanks in Islip Leased Facility and
      the
      roof leaks in New Orleans Owned Facility, pursuant to this Agreement and
      Seller's indemnification and other obligations hereunder.  Seller
      agrees that it will cause its envi­ron­mental con­sultants and
      engineers and others to conduct their repairs and inspections and other work
      at
      the Acquired Facili­ties during normal business hours (or at such other
      times reasonably agreed to by the Parties) and in a manner de­signed to
      cause minimal interference to the operations conducted at the Acquired
      Facilities.

    

    Section
      8.3  Inventory. The inventories of the Acquired Facilities
      shall be taken in accordance with this Agreement and Schedule
      8.3.  Pursu­ant to Section 8.6, the Purchaser will pay to Seller a
      sum equal to Seller's Actual Cost of the Transferred Inven­to­ry or the
      Non-Acquired Facilities Inventory being transferred.  The written
      record of the physical inventories

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    taken
      pursuant to this Agreement (the "Inventory List") which list shall
      exclude all inventory that fails to conform to the warranties set forth in
      Section 4.1(g) and such written record shall value the items included in the
      applicable Transferred Inventory or the Non-Acquired facilities Inventory at
      Actual Cost. The Parties shall share equally any costs associated with taking
      the physical inventories covered by this Section 8.3, including labor
      costs.

    

    Section
      8.4  Non-Acquired Facilities Inventory.  Purchaser
      shall purchase all Readily Saleable Merchandise existing at Seller's Edison
      and
      Freshtown Facilities ("Non-Acquired Facilities Inventory") after Seller
      has reduced the inventory level to a level as low as reason­ably
      practica­ble while maintaining adequate service levels, subject to the
      following sentence.  Purchaser shall only be responsible for
      Non-Acquired Facilities Inventory to the extent such inventory is actually
      received by Purchaser at Purchaser's or an Affiliates' facilities, unless
      certain inventory is not received at Purchaser's facilities due to Purchaser's
      (or the driver's) negligence or intentional misconduct.  Purchaser
      shall drop trailers at Seller's Edison and Freshtown Facilities, and Seller
      shall be responsible for loading and sealing the trailers.  Purchaser
      shall arrange for drivers to transport the Non-Acquired Facilities Inventory
      to
      its facilities at Purchaser's cost.  Seller shall position its
      employees at Purchaser's or its Affiliate's facilities' receiving docks to
      confirm the Non-Acquired Facilities Inventory counts.  All deliveries
      in one (1) week will be aggregated and paid pursuant to the payment schedule
      set
      forth in Section 8.6.

    

    Section
      8.5  Inventory Repurchase.  Subject to the terms of
      the Supply Agreement, Seller shall repurchase all of the Transferred Inventory
      from Purchaser or Purchaser's designee within [*]
      of the
      Procurement Conversion Date for the applicable Acquired Facility or within
      [*]
      of
      the applicable Closing Date or later receipt at Purchaser's or an Affiliate's
      facilities for the Non-Acquired Facilities Inventory, or if shorter for any
      product in the Trans­ferred Inven­tory or Non-Acquired Facilities
      Inventory, the days re­main­ing on the manufacturer's recommend­ed
      shelf life for such product as of the applicable Closing
      Date.   Notwithstanding the preceding, GM/HBC product shall be
      repurchased over a [*]
      period
      rather than the [*]
      period set
      forth above.   If at the end of such [*]
      (or [*]
      for GM/HBC)
      day period any applicable Transferred Inventory or Non-Acquired Facilities
      Inventory has not been purchased by Seller, then Purchaser will not be obligated
      to pay for such remaining Transferred Inventory or Non-Acquired Facilities
      Inventory until same is purchased by Seller or otherwise disposed of as per
      agreement of the Parties and C&S.

    

    In
      addition to the repurchase described above, Seller shall work with Purchaser
      to
      reduce all remaining excess Transferred Inventory or Non-Acquired Facilities
      Inventory, as follows:

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    

    

    
      	
              ·  

            	
              For
                Transferred Inventory or Non-Acquired Facilities Inventory remaining
                in
                the warehouse after [*]
                (or
                [*]
                for
                GM/HBC)  following Purchaser's receipt, Seller will offer
                Purchaser a discounted price on the inventory balance on
                hand.  Seller will also review the possibility of creating
                specific promotional plans in order to deplete the remaining
                inventory.

            

    

    

    
      	
              ·  

            	
              For
                all Transferred Inventory or Non-Acquired Facilities Inventory remaining
                in the warehouse after [*]
                from
                Purchaser's receipt, Seller will work with Purchaser to dispose of
                it,
                which may require additional discounts to Purchaser's purchase price,
                i.e.
                if Purchaser must sell the inventory to salvage,
                etc.

            

    

    

    Section
      8.6 Inventory Actual Cost Payment.  Subject to the provisions
      set forth in Section 8.5 (regarding Purchaser's right to withhold payment if
      Seller has not re-purchased the Transferred or Non-Acquired Facilities
      Inventory, as applicable), Purchaser shall pay Seller for the Transferred
      Inventory or Non-Acquired Facilities Inventory in [*]
      commencing
      on the [*] following the applicable Closing.

    

    Section
      8.7  Injunctions/Orders.  In the event that any
      temporary, interim or other non-final injunc­tion, order or decree is issued
      by a court of competent juris­diction which restrains, prohibits or limits
      consum­mation of the transactions contemplated hereby each Party and C&S
      shall use its reasonable best efforts to have such injunction, order or decree
      lifted, rescind­ed or revoked as soon as possible.

    

    Section
      8.8  Conveyance Taxes.  Notwith­standing any
      other provision of this Agreement to the contrary, all excise, transfer
      (including real property transfer), gross receipts, litter control,
      documenta­ry, sales, use, gross receipts, stamp, registra­tion, filing,
      recordation and other similar taxes, together with any interest, additions
      or
      penalties with respect thereto and any interest in respect of such additions
      or
      penalties incurred in connection with this Agree­ment or resulting from the
      transactions contemplated by this Agreement (collectively, "Conveyance
      Taxes") shall be borne equally by Seller and Purchaser and shall be paid by
      the responsible Party on the applicable Closing Date or as soon thereafter
      as
      necessary or required.  Schedule 8.8 sets forth the Conveyance Taxes
      payable in connection with the transactions contemplated by this
      Agreement.  The Party responsible shall file all necessary tax returns
      with respect to all such Conveyance Taxes, and, to the extent required by
      applicable law, the other Party will, and will cause its Affiliates to join
      in
      the execution of any such tax returns.  The Parties shall also split
      equally any other conveyance fees imposed on either Party.

    

    Section
      8.9  Apportionments and Prepaid Expens­es.

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    

    

    (a)  All
      Tax assessments and utili­ty charges with re­spect to the Acquired
      Facilities shall be appor­tioned be­tween Seller and Purchaser as set
      forth below:

    

    (i)  Seller
      shall pay all Taxes as­sessed against each of the Acquired Facilities with
      re­spect to taxable periods ending on or before the applicable Closing
      Date.  Purchaser shall pay all Taxes assessed against each of the
      Ac­quired Facilities with respect to taxable periods beginning on the day
      after­ the applicable Closing Date (including interest and penalties due not
      caused by Seller), subject to the Leases and the New Orleans
      Sublease.  Seller shall pay to Purchaser at the applicable Closing its
      prorat­ed share (as determined in this Section 8.9(a)(i)) of any unpaid
      Taxes per­taining to each of the Dunmore Owned Facility, New Orleans Owned
      Facility, Baltimore Owned Facility and the Leased Facilities with respect any
      Straddle Period and shall be responsible for any interest and penalties accrued
      at the time of applicable Closing with respect to the period prior to the date
      of the applicable Closing.  In the absence of any assessment
      estab­lishing the tax payments due for a Straddle Period, for purpos­es
      of proration under this Section 8.9(a)(i), Taxes shall be calculated as one
      hundred percent (100%) of the most recent tax as­sessed valuation figures at
      the time of the applicable Closing.  Upon receipt of an actual
      assessment for the Taxes due during a Straddle Period, Seller and Purchaser
      will, if neces­sary, adjust the apportionment between them within thirty
      (30) days after Purchaser delivers to Seller the actual
      assessment.   For purposes of this Section 8.9(a)(i), the
      Seller's prorated share of unpaid Taxes for a Straddle Period shall be deemed
      to
      be the amount of such Taxes for the entire period (or, in the case of such
      determined on an arrears basis, the amount of such Taxes for the immediately
      preceding period) multiplied by a fraction, the numerator of which is the number
      of calendar days in the taxable period ending on (and including) the applicable
      Closing Date, and the denominator of which is the number of calendar days in
      the
      entire taxable period.

    

    (ii)  All
      utility charges, including, without limi­ta­tion, sewer and water
      charges (collective­ly, "Util­ity Charges") and all payments
      under any Assumed Con­tracts shall be pro­rat­ed and
      appor­tioned as of the applicable Closing Date, the period through and
      including the applicable Closing Date being Seller's re­sponsi­bility
      and the period com­mencing on the day immedi­ately following the
      applicable Closing Date being Purchaser's
      re­sponsibil­ity.  Any undetermined or unbilled Utility
      Charges shall be appor­tioned as of the applicable Closing Date on the basis
      of the most recent bill issued prior to the applicable Closing and Purchaser
      and
      Seller shall adjust the appor­tion­ment, if neces­sary, within
      thirty (30) days after Purchaser submits to Seller actual in­voices for such
      charges.

    

    (iii)  All
      payments under any Assumed Contracts, Leases and the New Orleans Sublease shall
      be prorated and apportioned as of the applicable Closing Date, the period
      through and including the applicable Closing Date being Seller's responsibility
      and the period commencing on the day immediately following the applicable
      Closing Date being Purchaser’s responsibility.

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    

    

    (b)  (i)  Seller
      shall pay all base, minimum, fixed and additional rent and other charges
      ("Rent") due and payable under the Leases with respect to the period
      through and including the applicable Closing Date.  Purchaser shall
      pay all Rent due and payable under the Leases with respect to the period from
      and after the day following the applicable Closing Date.  Purchaser
      shall pay to Seller at the applicable Closing its prorated share of any Rent
      prepaid by Seller relating to the period after the applicable Closing
      Date.  Seller shall give Purchaser a credit for any payments due under
      the Leases not yet paid and relating in any way to any time prior to the
      applicable Closing.

     

    (ii)
      To
      the extent any amounts referred to in this Section 8.9(b) are computed based
      on
      estimated amounts subject to adjustment at a later date, Purchaser and Seller
      agree that in the event such ad­just­ment occurs after the date of the
      applicable Closing, if any amounts are determined to be owing to either Seller
      by Purchaser or to Purchaser by Seller, then the Party owing such amounts shall
      pay the same to the owed Party within ten (10) days of writ­ten demand
      therefore by the Party to which such amounts are owed.

    

    (c)  Purchaser
      shall not
      have any liability with respect to the New Orleans Lease (financial or
      otherwise) except as set forth in the New Orleans Sublease.

    

    (d)  Seller
      covenants and agrees to satisfy any and all Liens secured by or affecting the
      Acquired Assets which can be satisfied by payment of fixed and ascertainable
      amounts, or bond against the same (or if acceptable to Title Company such that
      Title Company does not take exceptions for any such Liens on Purchaser's title
      insurance policies, Seller may indemnify the Title Company), and shall deliver
      to Purchaser or the Title Company, at the applicable Closing, instruments in
      recordable form and sufficient to satisfy such Liens of record, together with
      the cost of recording or filing said instruments, or a bond therefore or any
      documents required by the Title Company in conjunction with an
      indemnity.

    

    Section
      8.10  Allocation of Purchase Price.  Intentionally
      Omitted.

    

    Section
      8.11  Obtaining Permits. Purchaser shall be responsible for
      obtaining all licenses and non-assignable permits necessary to operate the
      Business after the applicable Closing, as required by law, including tobacco
      licenses.  Seller shall transfer any licenses or permits to Purchaser
      to the extent feasible under the law and Seller shall cooperate fully with
      Purchaser in its efforts to obtain or assign permits and provide any information
      or reasonable assistance, including DEA and state drug enforcement agency powers
      of attorney, as necessary.  Attached hereto as Exhibit H is a
      list of all material permits and licenses (including environmental) which are
      required for the use and operation of the Acquired Facilities or the
      Business.

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    

    

    Section
      8.12  Waivers.  Seller shall use good faith efforts
      to deliver landlord waivers from any landlords in the chain of title with
      respect to the Acquired Facilities to the extent required by Purchaser's bank.
      

    

    Section
      8.13  Non-Disturbance Agreements.  Seller shall use
      commercially reasonable efforts to obtain Non-Disturbance Agreements from the
      current landlords and overlandlords if applicable (not including Seller's direct
      landlords with respect to the Islip Facility Lease and the Baltimore Facility
      Lease) and lenders set forth on the title commitments received by Purchaser
      unless an existing Non-Disturbance Agreement is on record (or in recordable
      form
      and Seller shall record prior to the applicable Closing) and will inure to
      the
      benefit of Purchaser, except Seller is not required to obtain a Non-Disturbance
      Agreement from the landlord of the New Orleans Lease for the benefit of
      Purchaser as subtenant.  If Seller is unable, despite such
      commercially reasonable efforts, to obtain the Non-Disturbance Agreements,
      Seller shall indemnify Purchaser from any and all liability and damages, whether
      direct or indirect, resulting from such failure, and such indemnification shall
      not be subject to the minimum threshold set forth in Section 9.6, provided
      Purchaser or an Affiliate or a third party with permission from Purchaser was
      using such Acquired Facility.  Further, if Purchaser is unable to
      maintain control of all or a material part of an Acquired Facility due to
      failure of Sellers to obtain a Non-Disturbance Agreement, due to a title defect
      arising prior to the applicable Closing Date or due to failure of Sellers to
      obtain an estoppel certificate or due to a Seller default, act or omission
      under
      or with respect to the New Orleans Lease (unless Purchaser's inability to
      maintain control of all or a material part of an Acquired Facility is due to
      an
      act or omission of Purchaser or an Affiliate or a third party with permission
      from Purchaser to use the Acquired Facility), any resulting breach or service
      issues related to such loss of control of an Acquired Facility shall not be
      a
      breach by C&S of the Supply Agreement.

    

    Section
      8.14  Insurance. Seller agrees to maintain all insurance as is
      reasonable and customary in amounts reasonably acceptable to Purchaser with
      respect to the Acquired Assets and the Acquired Facilities, including, but
      not
      limited to, property, general liability, automobile liability and workers'
      compensation insurance through the applicable Closing.  Purchaser
      shall maintain all insurance as is reasonable and customary in amounts
      reasonably acceptable to Seller with respect to the Acquired Assets and Acquired
      Facilities, including, but not limited to, property, general liability,
      automobile liability and workers' compensation insurance from and after the
      applicable Closing.  The property insurance required shall insure each
      of the Acquired Facilities at [*]
      of
      replacement cost. Seller and Purchaser shall be deemed to be in compliance
      with
      this provision with respect to the Acquired Facilities, if Seller or Purchaser
      is in compliance with the insurance provisions of the relevant
      Lease.

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    

    

    Section
      8.15  Transition
      Fee.  Purchaser shall pay Seller a transition fee ("Transition
      Fee") for certain of Seller's costs associated with transitioning the
      Business from Seller to Purchaser, which fee shall be negotiated by the Parties,
      but shall not exceed [*],
      without
      the prior written consent of Purchaser.  Such Transition Fee shall be
      paid in installments as Seller incurs the actual costs.  Seller shall
      provide detailed backup documentation with respect to the Transition Fee and
      the
      Parties will reconcile any amounts as soon as possible.

     

    Section
      8.16  Fair
      Market Price.  The determination of Fair Market Price for the
      Dunmore Owned Facility, Baltimore Owned Facility and the New Orleans Owned
      Facility shall be determined as follows:  one (1) MAI Appraiser shall
      be selected by Seller and one (1) MAI Appraiser shall be selected by Purchaser
      for each building.  Each appraiser shall have a minimum of ten (10)
      years experience as an MAI Appraiser of commercial rents in the county in which
      the Dunmore Owned Facility, Baltimore Owned Facility or the New Orleans Owned
      Facility, as applicable, are located and whose credentials are reasonably
      acceptable to the other Party.  The appraisals shall be performed on a
      comparable value basis. Each MAI Appraiser shall then make the determination
      of
      Fair Market Price upon the terms and conditions as herein provided. The
      appraisal shall be for the Dunmore Owned Facility, Baltimore Owned Facility
      or
      the New Orleans Owned Facility in AS IS, WHERE IS condition, free and clear
      of
      all tenancies.  Seller shall pay for its MAI Appraiser(s), and
      Purchaser shall pay for their MAI Appraiser(s).  Fair Market Price
      shall be determined no less than twenty (20) days prior to the applicable
      Closing Date.  If the appraisals, for either building, are within ten
      (10%) percent of each other, the average value of the two (2) appraisals shall
      be the Fair Market Price with respect to such property.  If the
      difference between the two (2) appraisals, for either building, is greater
      than
      ten (10%) percent, the two (2) MAI Appraisers shall designate a third (3rd) MAI Appraiser
      and
      the value given in that appraisal shall be the Fair Market Price for that
      building.  Seller and Purchaser shall each pay fifty (50%) percent of
      the fee of the third (3rd) MAI
      Appraiser.  Once the Fair Market Price is determined, it will be
      multiplied by [*]
      for the
      Dunmore Owned Facility and the New Orleans Owned Facility and by [*]
      for the
      Baltimore Owned Facility, and the resulting sum for each building, will be
      the
      amount Purchaser shall pay for the Dunmore Owned Facility, the New Orleans
      Owned
      Facility and the Baltimore Owned Facility respectively.  Purchaser
      will then charge Seller (through the upcharge as set forth in the Supply
      Agreement) at a cap rate determined by the MAI Appraisers.   For
      example if the combined purchase price for the Dunmore Owned Facility, the
      New
      Orleans Owned Facility and the Baltimore Owned Facility is [*]
      and the cap
      rate is [*],
      then
      Seller will be charged an upcharge based on an annual figure of [*].  The
      MAI Appraisers shall derive the cap rate from comparable sales for properties
      leased to tenants with credit ratings  similar to the
      Seller.  If Purchaser, at any point in time, decides to sell the
      Dunmore Owned Facility, Baltimore Owned Facility or the New Orleans Owned
      Facility, Seller and Purchaser
      will [*] in either the net profit or
      net loss arising from such sale(except for in the case of the Baltimore Owned
      Facility, where Seller shall be entitled to [*]
      of any net
      profit

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    or
      [*]
      of any net
      loss), unless Purchaser decides to sell at a loss intentionally as part of
      its
      tax strategy.

    

    Section
      8.17  IT
      Services.  Purchaser may request, and if so, Seller will provide
      Purchaser with access to certain information technology systems and services
      as
      set forth on Schedule 8.17 after each applicable Closing in order to effectuate
      a smooth transition of the Business.

    

    Section
      8.18  Exhibits.  The Parties agree that the attached
      exhibits and schedules ("Exhibits") may not at the time of execution of
      this Agreement all be final and shall be supplemented and/or revised prior
      to
      the applicable Closings or at another time to be mutually agreed to by the
      Parties.  The Parties acknowledge and agree that substantially all of the
      terms of the Exhibits have been agreed upon and are reflected in the attached
      Exhibits and accordingly the Exhibits shall be in substantially similar forms
      as
      the Exhibits attached to this Agreement on the date hereof.  The Parties
      agree to engage in subsequent good faith negotiation with respect to any
      outstanding issues or requested supplements or revisions to the
      Exhibits.

    

    Section
      8.19  Repairs.  Prior to the Procurement Conversion
      Date for each Acquired Facility, the Parties will in good faith agree on a
      list
      (the "List") of repairs ("Repairs") for which Seller will
      reimburse Purchaser for the cost of such Repairs.  The Repairs for which
      Seller will be responsible for providing reimbursement are: (i) those that
      are
      required by law as of the applicable Procurement Conversion Date;  and
      (ii) those that are on the List.  The Parties shall place on the List
      those Repairs that they reasonably agree should be or will become necessary
      to
      be repaired within [*]
      of the
      applicable Procurement Conversion Date.  No Repair shall be done by
      Purchaser without Seller approving an estimated cost thereof, which approval
      shall not be unreasonably withheld, conditioned or delayed.  If there
      is a disagreement over the determination of such Repairs or the estimated cost
      thereof, then the Parties shall submit such dispute to an engineering firm
      mutually agreed to by the Parties.

    

    ARTICLE
      IX

    INDEMNIFICATION

    

    Section
      9.1  Survival.  The representations and warranties
      contained in this Agreement shall sur­vive the applicable Closing and
      con­tin­ue in full force and effect for a[*],
      except for
      the representation and warranties in [*]
      which will
      survive forever, subject to Section 9.5(a)(i).  All of the covenants
      and other indemnities of the Parties set forth in this Agreement shall survive
      the applicable Closing and con­tinue in full force and effect according to
      their respec­tive terms.

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    

    

    Section
      9.2  Indemnification Provisions for Benefit of
      Purchaser.

    

    (a)
      From
      and after the applicable Closing Date, Seller shall indem­ni­fy,
      reimburse, hold harm­less and defend Pur­chaser and its Affili­ates,
      and their respec­tive officers, direc­tors, employees, and agents
      (indi­vidual­ly, a "Pur­chaser Indem­nitee" and,
      collective­ly, the "Purchaser Indemnitees"), for, from and against
      all demands, claims, actions or causes of action, assess­ments, losses,
      damag­es, injury, liabilities, reasonable costs and expenses (including
      interest and penalties and reasonable expenses of inves­tigation,
      consultation and attorney's fees (including cost of enforcement of indemnity)
      disbursements and expenses) (collec­tively, "Losses") arising,
      directly or indirectly, out of:  (i) any breach of any
      representa­tion or warranty of Seller contained in this Agreement; (ii) any
      breach of any cove­nant of Seller set forth in this Agree­ment; (iii)
      except for matters relat­ing to any Environ­mental Condition, which are
      covered by the indem­ni­fi­cation pro­vid­ed for in
      Sec­tion 9.2(b) hereof, any fail­ure of Seller to pay, perform or
      dis­charge the Excluded Liabilities or any other liabili­ties or
      obliga­tions of Seller (other than the Assumed Lia­bili­ties and
      liabili­ties expressly assumed by Purchaser in this Agreement­),
      including obligations under the Assumed Contracts or Leases prior to the
      applicable Closing or the Delayed Closing, as applicable; and obligations under
      the New Orleans Lease at all times except as expressly set forth in the New
      Orleans Sublease and obligations related to the Dunmore Owned Facility,
      Baltimore Owned Facility and the New Orleans Owned Facility occurring or arising
      from circumstances that occurred prior to the applicable Closing; (iv) except
      for matters relating to any Environmental Condition, which are covered by the
      indemnification provided for in Section 9.2(b) hereof, di­rect­ly or
      indi­rect­ly, the owner­ship, use or opera­tion of the Acquired
      Assets, including any Improvement not constructed in compliance with law (unless
      protected by a grandfather clause, except that if the grandfather clause does
      not inure to the benefit of Purchaser, Purchaser and Seller will discuss and
      work together to bring the Improvement in compliance with law at Seller's cost
      and expense) or operated by Seller, its Affiliate, officer, director, employee
      or agent in violation of applicable law,  and any repair, alteration,
      restoration or improvement in connection with each Acquired Facility arising
      or
      accruing prior to the applicable Closing Date, including those matters set
      forth
      on Schedules 4.1(e)(vi), 4.1(e)(vii) and 4.1(h),  or the employment of
      the Affected Employees prior to the applicable Closing or the Delayed Closing,
      as applicable; (v) Incremental Facility Use Expenses; and (vi) operation of
      the
      Business prior to the applicable Closing (unless due to a negligent act or
      omission of Purchaser or C&S or anyone acting through or on behalf of
      Purchaser or C&S).

    

    (b)  Notwithstanding
      anything to the contrary contained herein and in addition to the
      indemni­fication set forth in Section 9.2(a) above, from and after the
      applicable Closing Date, Seller shall indemnify, reimburse, hold harmless and
      defend the Purchaser Indemnitees for, from and against all Losses aris­ing,
      directly or indirectly, out of:  (i) any condi­tion,
      cir­cum­stances, activity, practice or incident (on-site or off-site)
      related to or in con­nec­tion with the Acquired Facilities (or any
      off-site loca­tion relat­ing to the business con­ducted at the
      Ac­

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    quired
      Facilities) which forms or is reasonably likely to form the basis of any claim,
      action or cause of action, suit, expense or liabil­ity under any
      Environmental Law, including but not limited to statutory or common law claims
      by any Governmental Authority or private party (an "Environmental
      Condi­tion"), including those items listed on Schedule 4.1(o), whether
      or not such Environmental Condition was discov­ered by Purchaser during its
      due dili­gence investigation of the Acquired Facilities and whether or not
      Purchaser delivered written notice to Seller with respect to which discovery
      prior to the applicable Closing, as long as such Environmental Condition
      existed, arises out of conditions or circumstances that occurred or existed,
      or
      was caused, in whole or in part, on or prior to the applicable Closing Date
      (provided, however, if only caused in part prior to the applicable Closing
      Date,
      Seller shall only be responsible for remediating the Environmental Condition
      to
      the extent attributable to the part that existed, occurred, arose out of
      conditions or circumstances that occurred or existed, or was caused, on or
      prior
      to the applicable Closing Date, in accordance with Section 9.3(b)(ii)); and
      (ii)
      the breach by Seller of any environmental representation or warranty set forth
      in Section 4.1(o) of this Agreement.  Seller's
      indem­nifica­tion obligations in this Section 9.2(b) shall include
      remediating or otherwise resolving, in compliance with all applicable laws
      (including all Environmental Law), regulations and good industry practice,
      at
      its sole cost and expense, any Environ­mental Condition for which
      indemnifi­cation is granted under this Section 9.2(b).

    

    Section
      9.3  Indemnification Provisions for Benefit of
      Seller.  (a) From and after the applicable Closing Date, Purchaser
      shall indemnify, reimburse, hold harm­less and defend Seller and its
      Affiliates, and their respec­tive offi­cers, directors, employees, and
      agents (individ­ually, a "Seller Indemnitee" and, col­lectively,
      the "Seller Indemnitees") for, from and against all Losses, arising,
      directly or indirectly, out of :  (i) any breach of any representation
      or warranty of Purchaser contained in this Agreement; (ii) any breach of any
      covenant of Purchaser set forth in this Agree­ment; (iii) except for matters
      relating to any Environmental Condition, which are covered by the
      indemnification provided for in Section 9.3(b) hereof, any failure of Purchaser
      to pay, perform or dis­charge any of its obligations under the As­sumed
      Liabilities or any other obligations or liabilities of Purchaser set forth
      in
      this Agreement (excluding the Excluded Liabilities and the New Orleans Lease
      and
      any liabilities retained by Seller pursuant to this Agreement), including
      obligations under the Assumed Contracts or Leases after the applicable Closing
      or Delayed Closing as applicable and obligations related to the Dunmore Owned
      Facility, Baltimore Owned Facility and the New Orleans Owned Facility arising
      from circumstances that occurred after the applicable Closing Date (except
      as
      set forth in Section 9.2(a)(iv)), and the New Orleans Sublease; (iv) except
      for
      matters relating to any Environmental Condition, which are covered by the
      indemnification provided for in Section 9.3(b), hereof, directly or indirectly,
      the ownership, use or operation of the Acquired Assets, including any
      Improvement constructed after the applicable Closing, but not in compliance
      with
      law (unless protected by a grandfather clause), or operated by Purchaser, its
      Affiliate, officer, director, employee or agent in violation of applicable
      law,
      and any repair, alteration, restoration or

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
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    improvement
      in connection with each Acquired Facility, arising or accruing after the
      applicable Closing Date; and (v) operation of the Business after the applicable
      Closing (unless due to a negligent act or omission of Seller or anyone acting
      through or on behalf of Seller ).

    

    (b)  Notwithstanding
      anything to the contrary contained herein and in addition to the indemnification
      set forth in Section 9.3(a) above, from and after the applicable Closing Date,
      Purchaser shall indemnify, reimburse, hold harmless and defend the Seller
      Indemnitees for, from and against all Losses, arising, directly or indirectly,
      out of:  (i) any Environmental Condition at the Acquired Facilities
      (or any off-site location related to the business conducted at the Acquired
      Facilities controlled or owned by Purchaser) which arises after the date of
      the
      applicable Closing (unless such Environmental Condition existed, arises out
      of
      conditions or circumstances that occurred or existed, or was caused, in whole
      or
      in part, on or prior to the applicable Closing Date but then such exclusion
      shall only be to the extent that Seller is responsible as more particularly
      set
      forth in Section 9.2(b)); (ii) for the incremental additional costs of
      performing remediation with respect to an Environmental Condition but only
      if
      and to extent arising directly as a result of the acts or omissions of Purchaser
      or anyone using the Acquired Facilities after the applicable Closing (except
      by
      Seller, its Affiliate, officer, director, employee or agent); or (iii) any
      Environmental Condition whether arising before, on or after the applicable
      Closing Date if caused by Purchaser during its due diligence examination of
      the
      Acquired Facilities (provided, however, if only caused in part by Purchaser,
      Purchaser shall only be responsible for the incremental additional costs of
      performing remediation with respect to the Environmental Condition to the extent
      arising directly as a result of the acts or omissions of Purchaser or its agents
      during Purchaser's due diligence examination).  Purchaser's
      indemnification obligations in this Section 9.3(b) shall include remediating,
      or
      otherwise resolving, in compliance with all applicable laws (including
      Environmental Law), regulations and good industry practice, at its sole cost
      and
      expense, any Environmental Condition for which indemnification is granted under
      this Section 9.3(b).

    

    Section
      9.4  Procedures Relating to Indemnifi­cation. In order for
      an Indemnitee to be entitled to any indemnification provided for under this
      Agreement in respect of, arising out of or involving a claim made against the
      Indemnitee, such Indemnitee must notify the party who may become obligated
      to
      provide indemnification hereunder (the “Indemnifying Party”) in writing,
      and in reasonable detail, of the claim promptly; provided,
however, that failure to give such notification shall not affect the
      indemnification provided hereunder except to the extent the indemnifying party
      shall have been prejudiced as a result of such failure.  After any
      required notification (if applicable), the Indemnitee shall deliver to the
      indemnifying party, promptly after the Indemnitee’s receipt thereof, copies of
      all notices and documents (including court papers) received by the Indemnitee
      relating to the claim.  All indemnity provisions for the benefit of
      Seller or Purchaser shall survive the applicable Closing forever, unless
      otherwise set forth herein.

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
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    Section
      9.5  Time Limitations.

     

    (a) Seller
      will have no liability with respect to any representation or warranty unless
      notice is given to Seller prior to the expiration of the following
      periods:

     

                                               (i)  for
      the representations and warranties set forth in Sections [*]
      - at any
      time after the applicable Closing Date; provided that Purchaser shall, with
      respect to title claims, look first to the coverage of any title insurance
      policy; or

     

                                               (ii)  for
      all other representations and warranties – [*]
      after the
      applicable Closing Date.

     

    Section
      9.6.   General Indemnification Provisions.  (a)
      An indemnifying party shall not be obligated to provide indemnification until
      the aggregate amount of Losses subject to its indemnification obligations
      exceeds [*]
      (the
“Basket Amount”), provided that once the Basket Amount is exceeded, the
      indemnifying party shall provide indemnification from the first dollar of such
      Losses.

    

    (b)   If
      the
      indemnifying party agrees to defend an Indemnitee and respond to any
      Environmental Claim, then the following provisions will apply:

     

    (i)  If
      Seller is the indemnifying party, Purchaser will permit Representatives of
      Seller to enter onto Purchaser's Facilities at all reasonable times for the
      purpose of inspection or conducting such environmental tests or remediation
      as
      Seller may reasonably desire with respect to the Environmental Claim, all at
      Seller's expense and in accordance with this Section 9.6;

    

    (ii) The
      indemnifying party will provide to the Indemnitee copies of all reports,
      correspondence and other documents regarding the matter for which an
      Environmental Claim has been made;

    

    (iii) The
      Indemnitee shall have the right, at its option and at its own expense, to
      participate in and be present at the defense of the Environmental Claim, but
      not
      to control the defense, negotiation or settlement thereof, which control shall
      remain with the indemnifying party.

    

    (c)    If
      the
      indemnifying party does not elect to control the defense of an Environmental
      Claim under paragraph (b) of this Section 9.6, then the indemnifying party
      shall promptly reimburse the Indemnitee for reasonable expenses, including
      but
      not limited to reasonable attorney and paralegal and expert fees and
      disbursements, incurred by the Indemnitee

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
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    in
      connection with defense of any Environmental Claim, as and when the same shall
      be incurred by the Indemnitee.  Any person who has not assumed control
      of the defense of any Environmental Claim shall have the duty to cooperate
      with
      the party which assumed such defense and the terms of this Section 9.6(c) will
      apply.

    

    (d)    Unless
      otherwise set forth in the Confidentiality Agreement, dated March 3, 2005 by
      and
      between Seller and C&S ("Confidentiality Agreement") (Purchaser
      agreeing to be bound by its terms as if a signatory), each Party agrees to
      keep
      all information received concerning the environmental condition of the
      Facilities in strict confidence with the same degree of care as it accords
      to
      its own confidential information.  Except as required by law, neither
      Party will disclose such information to anyone other than its Representatives,
      whom each Party agrees to place under the same confidentiality
      obligation.

    

    (e)     The
      indemnifying party shall reimburse an Indemnitee for all reasonable attorney,
      paralegal and expert fees and disbursements incurred in connection with any
      effort or action to compel an indemnifying party to honor its indemnification
      obligation.

    

    ARTICLE
      X

    TERMINATION

    

    Section
      10.1  Termination. This Agreement may be terminated by giving
      written notice to the other Party, subject to the following:

    

    (a)  by
      mutual written agreement of the Parties and C&S;

    

    (b)  by
      Seller or Purchaser, if there shall be any order that is final and
      nonap­pealable preventing the consummation of the transactions contemplated
      hereby and the Party seeking to terminate the Agreement pursuant to this Section
      10.1(b) has com­plied in all respects with its obligations under Section
      8.7.  In such event, the Parties and C&S agree to meet and
      negotiate in good faith as to how to adapt the Supply Agreement to conform
      with
      such order;

    

    (c)  by
      Seller or Purchaser, on or after October 1, 2005, if the first Closing shall
      not
      have occurred by that date, or if all Closings have not occurred by January
      1,
      2006, provided, in such case, the Parties and C&S agree to negotiate in good
      faith to work out a solution;

    

    (d)  by
      Purchaser, if Seller or any of its Affiliates shall have breached or violated
      in
      any material respect any of its covenants set forth in this Agreement, and
      such
      breach or violation shall not have been cured within [*]
      (or such
      longer period as may be necessary to cure the same with due diligence) after
      written notice thereof has been given by Purchaser to

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
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    Seller,
      or if any of Seller's material representations and warranties made herein are
      not true in any material respects, provided if such breach cannot be cured
      prior
      to the applicable Closing, the Parties and C&S will negotiate in good faith
      to work out a solution;

    

    (e)  by
      Purchaser, as to any Ac­quired Facility, in the event any condi­tion(s)
      to the applicable Clos­ing set forth in Arti­cle VI hereof has not been
      met as to such Ac­quired Facili­ty and Purchaser has not waived such
      unmet condi­tion as to such Ac­quired Facili­ty, or any of the
      Acquired Facilities shall be damaged or destroyed by casualty, or a condemnation
      proceeding shall have been initiated with respect to an Acquired Facility,
      provided that if Purchaser terminates this Agreement as to any such affected
      Acquired Facility, that portion of the Purchase Price allocated to the affected
      Acquired Facility will be reduced accordingly, and provided in such event,
      the
      Parties and C&S will negotiate in good faith to work out a solution
      .

    

    (f)  by
      Seller if Purchaser or any of its Affiliates shall have breached or
      vio­lat­ed in any material respect any of its covenants set forth in
      this Agreement, and such breach or violation shall not have been cured within
      [*]
      (or
      such longer period as may be necessary to cure the same with due diligence)
      after written notice thereof has been given by Seller to Purchaser or if any
      of
      Purchaser's material representations and warranties made herein are not true
      in
      any material respects, provided, in such event, the Parties and C&S will
      negotiate in good faith to work out a solution.

    

    (g)  by
      Purchaser, as to any Acquired Facility, if Purchaser's due diligence
      investigations with respect to title or environmental matters relating to such
      Acquired Facility disclose to Purchaser a condition that will have a material
      adverse impact on Purchaser's ability to comply with its performance under
      or
      obligations under the Supply Agreement, provided that if Purchaser terminates
      this Agreement as to any such Acquired Facility, the portion of the Purchase
      Price allocated to the Acquired Facility as set forth in Schedule 8.10, will
      be
      reduced accordingly, provided, in such event, the Parties and C&S will
      negotiate in good faith to work out a solution.

    

    Section
      10.2  Effect of Termination.  Except as set forth in
      this Section 10.2, in the event of the termination of this Agreement pursuant
      to
      Section 10.1, this Agreement shall forthwith become null and void, there shall
      be no liability on the part of any Party or any of their respective officers,
      directors, subsid­iaries, Affiliates or associates to any other Party and
      all rights and obligations of any Party hereto shall cease; provided,
however, that the foregoing shall not restrict or otherwise limit
      the
      liability of any Party arising out of or relating to such
      Party's  breach of this Agreement.

    

    ARTICLE
      XI

    OPERATIONS
      PENDING CLOSING

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
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    Section
      11.1  Pending Operations.  From and after the date
      hereof and continuing until the applicable Closing, Seller, as the case may
      be,
      shall (i) con­tinue to operate, maintain and manage the Leased Facilities in
      accor­dance with the terms of the Leas­es, respec­tive­ly, and,
      along with the Dunmore Owned Facility, Baltimore Owned Facility and the New
      Orleans Owned Facility, consistent with past practic­es, and in
      accor­dance with the terms of this Agree­ment.  If Seller
      receives notice of a code violation prior to the applicable Closing, Seller
      shall promptly notify Purchaser of the same, and  will correct the
      same prior to the applicable Closing or escrow a reasonable amount with the
      Title Company at the applicable Closing to cover the cost of such correction;
      and (ii) operate the Business conducted at the Acquired Facilities in the
      ordinary course con­sistent with past practice and shall use all reasonable
      best efforts to pre­serve intact its goodwill, keep avail­able the
      ser­vices of its employees and preserve the goodwill and business
      rela­tionships with its suppli­ers and others having business
      relation­ships with it at the Acquired
      Facilities.  Notwithstanding the preceding sentence, the Parties
      acknowledge that throughout the transition, Purchaser shall have control over
      certain aspects of the Business (specifically, the employees) and thus, Seller
      shall not be in breach of this section if such breach is caused by Purchaser
      or
      is otherwise out of the control of Seller.  Fur­ther, during the
      afore­said peri­od, (i) Seller shall not place any liens (unless such
      lien can be satisfied, bonded over or covered by an indemnity acceptable to
      the
      Title Company prior to the applicable Closing) on or encumber the Acquired
      Facili­ties or the Acquired Assets or take any action which would cause it
      to be unable to perform under this Agree­ment; (ii) Seller shall keep all
      per­mits and licenses required for the operations of the Acquired Facilities
      and the Acquired Assets and which are in Seller's name in full force and effect
      to the extent required by law; (iii) Seller will not enter into any new service
      contract with respect to the Acquired Facilities and the Acquired Assets unless
      same shall be cancel­able for any reason or no reason at all and without
      penalty by Seller upon thirty (30) days notice or less; (iv) Seller shall
      main­tain all insurance policies now affecting the Acquired Facilities and
      the Ac­quired Assets (and which are presently maintained by Seller) in full
      force and effect and pay all premi­ums and charges re­quired
      thereun­der provided that such policies remain available at commercially
      reasonable rates and provided further that Seller may substitute the existing
      insurance poli­cies with a substantially similar policy or policies
      including through another insurer of comparable rating;  (v) Seller
      shall not sell, lease, sublease, transfer, mortgage or pledge any of the
      Ac­quired Facili­ties and the Acquired Assets (except to reduce
      inventory levels consistent with this Agreement); (vi) Seller will not amend,
      modify or terminate (unless required by the lease through no fault or action
      of
      Seller) any of the Leases, and shall pay all amounts and perform all obligations
      under each such Lease; and (vii) Seller shall provide Purchaser with copies
      of
      any and all default or other notices from landlords or other parties concerning
      the Leases or the premises covered by such Leases that will have a material
      impact on Purchaser's use of the Leases, and Seller shall use good faith efforts
      to provide all notices concerning the Leases or the premises to
      Purchaser.

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
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    ARTICLE
      XII

    DEFINITIONS

    

    Section
      12.1  Certain Defined Terms.  As used in this
      Agreement, the following terms shall have the fol­lowing
      meanings:

    

    (a)  "Acquired
      Assets" shall have the meaning specified in Section 1.1.

    

    (b)  "Acquired
      Facilities" shall have the meaning specified in the preamble to this
      Agreement.

    

    (c)  "Actual
      Cost" means the amount paid by Seller for any item con­tained in the
      Transferred Inventory or Non-Acquired Facilities Inventory as reflected on
      Seller's books and records, which amount shall not include any earned cash
      discounts and retail billbacks.

    

    (d)  "Affected
      Employees" shall mean all individuals who are employed by Seller or any of
      its Affiliates at the Acquired Facilities on the date of the applicable
      Closing.

    

    (e)  "Affiliate"
      shall mean, as to any entity, any person or entity that directly or indirectly
      con­trols, is controlled by, or is under common control with such first
      entity.  For purposes of the foregoing definition, "control" means the
      power to direct the business policies and affairs of an entity whether by reason
      of ownership of voting securities, by control or otherwise.

    

    (f)  "Applicable
      Law" shall mean all applicable laws, statutes, orders, rules, regulations,
      policies or guidelines promulgated, or judgments, decisions or orders entered
      by
      any Governmental Authority.

    

    (g)  "Assumed
      Collective Bargaining Agreements" shall mean the collective bargaining
      agreements listed on Schedule 12.1(g) hereto, true and complete copies of which
      are attached to such schedule.

    

    (h)  "Assumed
      Contracts shall mean the equip­ment leases and other contracts itemized
      on Exhibit B-1 hereto.

    

    (i)  "Assumed
      Liabilities" shall have the meaning specified in Section 3.2. The amount of
      each Assumed Liability which is a fixed amount shall be set forth with its
      respective Assumed Contract on Exhibit B-2.

    

    (j)  "Baltimore
      Deed"

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
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    (k)  "Baltimore
      Facility Lease" shall mean the lease for the facility located at Baltimore,
      Maryland.

    

    (l)  "Baltimore
      Facility Lease Assignment" shall have the meaning specified in Section
      1.1(g).  

    

    (m)  "Baltimore
      Owned Facility"

    

    (n)  "Business"
      shall mean the warehousing and transportation operations currently conducted
      at
      and from the Acquired Facilities.

    

    (o)
      "Closing" shall have the meaning specified in Section 7.1.

    

    (p)  "Closing
      Date" shall mean the date on which the applicable Closing
      occurs.

    

    (q)  "Contribution
      Period" shall have the meaning specified in Section 3.3(d).

    

    (r)  "Conveyance
      Taxes" shall have the meaning specified in Section 8.8.

    

    (s)  "Damaged
      Equipment" shall have the meaning specified in Section 4.1(h).

    

    (t)  "Delayed
      Closing" shall have the meaning specified in Section 7.1.

    

    (u)  "Dunmore
      Deed" shall have the meaning specified in Section 7.2(b).

    

    (v)  "Dunmore
      Owned Facility" shall have the meaning specified in the preamble to this
      Agreement.

    

    (w)
      "Edison Facility" shall mean the facility located in Edison, New
      Jersey.

    

    (x)  "Environmental
      Claim" shall mean (A) any notice (written or oral) by any person or entity
      alleging potential liability (including, without limitation, potential liability
      for investigatory costs, cleanup costs, governmental response costs, natural
      resources damages, property damages, personal injuries, or penalties) arising
      out of, based on or resulting from (i) the presence, or release into the
      environments of any Material of Environmental Concern at any

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
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    location,
      whether or not owned by Seller or (ii) circumstances forming the basis of any
      violation, or alleged violation, of any Environmental Law; or (B) any claim
      pursuant to Section 9.2(b) or Section 9.3(b) of this Agreement.

    

    (y)  "Environmental
      Condition" shall have the meaning specified in Section 9.2(b).

    

    (z)  "Environmental
      Law" shall mean all feder­al, state and local laws, regulations, rules
      and ordi­nances, as well as all common law theories of liability, relating
      to contamination, pollution or protection of the
      envi­ronment or human health or safety in relation there­to,
      in­clud­ing, with­out limitation, laws relating to Releases or
      threat­ened Releases of Materials of Environmental Concern into the indoor
      or outdoor environment (including, with­out limita­tion, ambient air,
      surface water, groundwater and surface and subsurface strata) or otherwise
      relating to the manufac­ture, processing, distribution, use, treat­ment,
      storage, Release, transport or handling of Materials of Environmental Concern,
      and all laws and regulations with regard to record keep­ing, notification,
      disclosure and reporting requirements respecting Materials of Environmental
      Concern, and all laws relating to endangered or threatened species of fish,
      wildlife and plants.

    

    (aa)  "Equipment
      Assets" shall have the meaning specified in Section 1.1(c).

    

    (ab)  "ERISA"
      shall have the meaning set forth in Section 3.3(a).

    

    (ac)  "ERISA
      Affiliate" shall have the meaning specified in Section 3.1.

    

    (ad)  "Excluded
      Assets" shall have the meaning specified in Section 1.1.

    

    (ae)  "Excluded
      Liabilities" shall have the meaning specified in Section 3.1.

    

    (af)  "Fair
      Market Price" shall have the meaning specified in Section 8.16.

    

    (ag)  "Freshtown
      Facility" shall mean the facility located at Freshtown, New
      York.

    

    (ah)  "Governmen­tal
      Author­ity" shall mean any foreign, federal, state, local or other
      governmental, administrative or regulatory authori­ty, body, agency, court,
      tribunal or similar entity.

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    

    

    (ai)  "Improvements"
      shall mean all build­ings, structures and other improvements included within
      each Acquired Facili­ty.

    

    (aj)  "Incremental
      Facility Use Expenses" shall mean any incremental cost, expense or liability
      (in­clud­ing, without limi­tation, any rental payment for temporary
      facilities or replacement facili­ties­, sever­ance pay­ment,
      addi­tion­al labor or trans­por­tation cost or simi­lar
      charge) that C&S reason­ably incurs in order to perform its
      obliga­tions under the Supply Agreement as a re­sult, di­rectly or
      indi­rect­ly, of Seller's fail­ure to deliv­er at the applicable
      Closing the full use of the Acquired Facil­i­ties (in­cluding,
      with­out limi­tation, due to remediation, casualty or destruc­tion
      of any Acquired Facil­i­ty) and which incremental cost, expense or
      lia­bil­ity would not have been incurred had such Acquired Facil­ity
      been fully and completely available for use by Purchaser.

    

    (ak)  "Indemnitee"
      shall mean any of the Pur­chaser's Indemnitees or Seller's
      Indemnitees.

    

    (al)  "Inventory
      List" shall have the meaning specified in Section 8.3.

    

    (am)  "Islip
      Facility Lease" shall mean the lease for the facility located at Islip, New
      York.

    

    (an)  "Islip
      Facility Lease Assignment" shall have the meaning specified in Section
      1.1(f).

    

    (ao)  "Knowledge"
      shall mean the knowledge of any director level, vice president or more senior
      officer of Seller or Purchaser, as applicable.

    

    (ap)  "Leased
      Facilities" shall mean the Islip Leased Facility, Baltimore Leased Facility
      and the New Orleans Leased Facility.

    

    (aq)  "Leases"
      shall have the meaning specified in Section 4.1(e)(viii)(1).

    

    (ar)  "Liens"
      shall mean any lien, charge, claim, pledge, covenant, security interest,
      conditional sale agreement or other title retention agreement, lease, mortgage,
      judgment, tax, assessment, restriction, reservation, reversion, license,
      security agreement, option, right to purchase or other encumbrance, other than
      the Permitted Encumbrances and exclusive of the lien for any public improvement
      which may be paid in installments in connection with or as part of bills from
      public authorities for taxes which are not yet due and payable.

    

    (as)
      "Litigation" shall have the meaning specified in Section
      4.1(j).

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    

    

    (at)  "Losses"
      shall have the meaning specified in Section 9.2.

    

    (au)  "Material
      Assumed Contracts" shall have the meaning specified in Section
      6.1(c).

    

    (av)  "Material
      Handling Equipment" shall mean equipment used to move product from place to
      place within a warehouse, including but not limited to fork lifts and pallet
      jacks.

    

    (aw)  "Materials
      of Environmental Concern" shall mean any toxic, hazardous, radioactive,
      caustic or dangerous substances, wastes, chemicals, pollutants or contaminants
      or any other substances that are defined as any of the above by, or regulated
      as
      such under, any Environmental Law, in­cluding, without limitation,
      petroleum, petroleum products and asbestos; and any fungi, mold, bacteria or
      other organic or inorganic matter that is injurious to human
      health.

    

    (ax)  "Multiemployer
      Pension Plans" shall have the meaning specified in Section
      4.1(p)(ii).

    

    (ay)  "New
      Orleans Facility Lease" shall mean the lease for the facility located at New
      Orleans, Louisiana.

    

    (az)  "New
      Orleans Deed" shall have the meaning specified in Section
      7.2(c).

    

    (ba)  "New
      Orleans Sublease" shall have the meaning specified in Section
      1.1(h).

    

    (bb)  "New
      Orleans Owned Facility" shall have the meaning set forth in the preamble to
      this Agreement.

    

    (bc)
      "Non-Acquired Facilities Inventory" shall have the meaning specified in
      Section 8.4.

    

    (bd)  "Out-of-Code
      Merchandise" shall mean merchandise that C&S cannot reasonably sell and
      deliv­er to Seller within the code dates set forth in the Supply
      Agreement.

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    

    

    (be)  "Owned
      Facilities" shall mean the Dunmore Owned Facility, Baltimore Owned Facility
      and the New Orleans Owned Facility.

    

    (bf)  "PBGC"
      shall have the meaning specified in Section 3.3(d).

    

    (bg)  "Permitted
      Encumbrances" shall mean with respect to the Acquired Facilities, the
      standard exclusions in the form of owner’s policy of title insurance (or
      leasehold title insurance policy, as the case may be), provided however that
      the
      Title Company deletes such exceptions upon receipt of the standard form of
      Owner's (or Lessee's) Affidavit; (ii) with respect to the Acquired Facilities,
      such matters of record as would be disclosed by a current and accurate survey
      and inspection of the Real Property that do not, individually or in the
      aggregate, materially impair the value or intended use of the Acquired
      Facilities; (iii) liens for taxes not due and payable on or before the
      applicable Closing Date; (iv) with respect to the Acquired Facilities, all
      recorded easements, covenants, restrictions, reservations, rights-of-way and
      other similar matters of record as of the date of Seller’s execution of this
      Agreement, provided the same do not, individually or in the aggregate,
      materially impair the value or intended use of the Acquired Facilities; (v)
      mechanics' liens and other like Liens imposed by law arising or incurred in
      the
      ordinary course of business consistent with past practice with respect to
      amounts not yet due (provided that such amounts arising or accruing prior to
      the
      relevant Closing Date shall be Excluded Liabilities), and provided that
      Title Company deletes such exceptions upon receipt of the standard form of
      Owner's or Lessee's Affidavit and/or an indemnity.

    

    (bh)  "Procurement
      Conversion Date" shall mean August 28, 2005 with respect to the Baltimore
      Leased Facility and the Baltimore Owned Facility; September 18, 2005 with
      respect to the Islip Leased Facility; October 2, 2005 with respect to the New
      Orleans Owned and Leased Facilities; and October 16, 2005 with respect to the
      Dunmore Owned Facility.

    

    (bi)  "Purchase
      Price" shall have the meaning specified in Section 2.1(a).

    

    (bj)  "Purchaser
      Indemnitee" and "Purchaser Indemnitees" shall have the meanings
      specified in Section 9.2.

    

    (bk)  "Readily
      Saleable Merchandise" shall mean merchandise that (i) is not Out-Of-Code
      Merchandise and (ii) in C&S' reasonable judgment based upon C&S'
      previ­ous expe­ri­ence, C&S can resell promptly with­out
      dis­counts to Seller.

    

    (bl)  "Related
      Agreements" shall have the meaning specified in the preamble to this
      Agreement.

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

    

    

    (bm)  "Release"
      shall mean any release, spill, emission, leak­ing, pumping, injection,
      deposit, disposal, discharge, dispersal, leaching or migration into the indoor
      or outdoor environment (including, with­out limitation, ambient air, surface
      water, groundwater, and surface or subsurface strata) or into or out of any
      property, in­cluding the movement of Materials of Environmental Concern
      through or in the air, soil, surface water or groundwa­ter.

    

    (bn)  "Rent"
      shall have the meaning specified in Section 8.9(b)(i).

    

    (bo)  "Seller
      Indemnitee" and "Seller Indemnitees" shall have the mean­ings
      specified in Sec­tion 9.3.

    

    (bp)  "Straddle
      Period" shall mean any taxable period beginning before the applicable
      Closing Date and ending after the applicable Closing Date.

    

    (bq)  "Supply
      Agreement" shall have the meaning specified in the preamble to this
      Agreement.

    

    (br)  "Tax"
      shall mean any foreign, feder­al, state or local income, gross receipts,
      fran­chise, license, sever­ance, occupation, premium, environ­mental
      (including taxes under Code Section 59A), customs duties, profits,
      dis­ability, registration, alternative or add-on minimum, estimated,
      withholding, payroll, employ­ment, unemployment insurance, social security
      (or simi­lar), excise, sales, use, value-added, occupancy, fran­chise,
      real property, personal property, business and occupa­tion, mercantile,
      windfall profits, capital stock, stamp, transfer, workmen's com­pensation,
      litter control, or other tax, fee or imposition of any kind whatsoever,
      including any inter­est, penalties, additions, assessments or de­ferred
      lia­bility with respect thereto, whether disputed or not.

    

    (bs)  "Tax
      Return" shall mean any return, report, declaration, claim for refund,
      estimate, elec­tion, or information statement or return relating to any Tax,
      including any schedule or attachment thereto, and any amendment
      there­of.

    

    (bt)  "Title
      Company" shall have the meaning specified in Section 6.1(e).

    

    (bu)  "Transferred
      Inventory" shall mean the inventory speci­fied in Section
      1.1(a).

    

    (bv)
      "Transition Fee" shall have the meaning specified in Section
      8.15.

    

    (bw)  "Utility
      Charges" shall have the meaning specified in Section
      8.9(a)(ii).

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    

    

    ARTICLE
      XIII

    MISCELLANEOUS

    

    Section
      13.1  Entire Agreement.  This Agree­ment,
      together with the exhibits hereto ­and the docu­ments re­ferred to
      here­in, in­clud­ing, without limita­tion, the Related
      Agree­ments, con­stitutes the entire agree­ment of the Par­ties
      and C&S with respect to the subject matter hereof and super­sedes all
      prior agreements and undertak­ings, both written and oral, be­tween
      C&S and the Parties hereto with respect to the subject matter
      hereof.  The Supply Agreement is incorporated herein by reference and
      made a part hereof.

    

    Section
      13.2  Expenses.  Except as otherwise specified in
      this Agreement, all costs and expenses, including, without limitation, fees
      and
      disbursements of counsel, financial advisors and accountants, incurred in
      connection with this Agreement and the transaction con­templated hereby
      shall be borne by the Party or such Party's Affiliates incurring the
      same.

    

    Section
      13.3  No Recording of Agreement.  Neither this
      Agreement nor any description of any of the transactions contemplated by this
      Agreement shall be recorded in the public records in any jurisdiction
      with­out the prior written consent of all
      Parties.  Not­with­standing the foregoing:  (i) the
      Parties may deliver copies of this Agreement (or descriptions of the
      transac­tions contemplated hereby) to any Governmental Authority the consent
      of which is required to consummate the trans­ac­tions contemplated by
      this Agreement; and (ii) within thirty (30) days prior to the applicable
      Closing, the Parties may file notices of settlement in the real estate records
      of the location of any of the Acquired Facilities with respect to the
      contem­plated transfer of each of the Acquired Facilities to
      Purchaser.

    

    Section
      13.4  No Brokers.  Each Party repre­sents and
      warrants to the other Party that it has not dealt with any person (including
      any
      real estate broker) in a way that would entitle such person to any broker's
      fee,
      finder's fee, commission or similar payment in connection with the execution
      and
      delivery of this Agree­ment or any Related Agreement or the consummation of
      the transactions contemplated by this Agreement or any Relat­ed
      Agreement.  Each Party hereby agrees to de­fend, indem­nify
      and hold the other Parties harmless from any liabil­ities for brokerage
      commissions or similar payments that are deter­mined to be due as a result
      of the dealings of the indem­nifying Party with such other
      per­sons.

    

    Section
      13.5  Amendments.  This Agreement may not be amended
      or modified except by an instrument in writing signed by, or on behalf of,
      each
      of Seller, Purchaser and C&S.

    

    Section
      13.6  Notices.  All notices, requests, claims,
      demands and other communications hereunder shall be in writing and shall be
      given or made (and shall be deemed

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

    to
      have
      been duly given or made upon receipt) by delivery in person, by courier service,
      recognized overnight delivery service, or by registered or certified mail
      (postage pre­paid, return receipt requested) to the respective Parties at
      the following addresses (or at such other address for a Party as shall be
      specified in a notice given in accor­dance with this Section
      13.6).

    

    

    If
      to
      Purchaser:                     Ocean
      Logistics LLC

    7
      Corporate Drive

    Keene,
      NH
      03431

    Attn:
      Richard B. Cohen, Chief Executive Officer

    Phone:  (603)
      354-4600

    Fax:
      (603) 354-4692

    

    With
      a
      copy to:

    

    Mark
      Gross

    President,
      Chief Financial Officer and General Counsel

    Phone:
      (603) 354-4604

    Fax:  (603)
      354-4692

    

    Carl
      G.
      Wistreich

    Senior
      Vice President, Legal and Human Resources

    Phone:
      (603) 354-4616

    Fax:  (603)
      354-4694

    

    If
      to
      Seller:                             The
      Great Atlantic & Pacific Tea Company, Inc.

    2
      Paragon
      Drive

    Montvale,
      NJ 07654

    Attn:  Mitchell
      P. Goldstein

    

    With
      a
      copy to:

    

    Robert
      Volosin, Vice President Real Estate

    470
      Chestnut Ridge Road

    Woodcliff
      Lake, NJ 07677

    Phone:  (201)
      571.4802

    Fax:
      (201) 571.4821

    

    and

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

    

    

    Dina
      Willner, Group Counsel

    470
      Chestnut Ridge Road

    Woodcliff
      Lake, NJ 07677

    Phone:
      (201) 571-4871

    Fax:
      (201) 571.4879

    

    and

    

    The
      Great
      Atlantic & Pacific Tea Company, Inc.

    90
      Delaware Avenue

    PO
      Box
      2475

    Patterson,
      NJ 07509-2475

    Attn:  Senior
      Vice President of Supply and Logistics

    

    Section
      13.7  Binding Effect; C&S Guaranty.

    

    (a)  This
      Agreement shall be binding upon and inure to the benefit of Seller, Purchaser,
      C&S and their re­spec­tive succes­sors and as­signs, but no
      rights, inter­est or obli­ga­tion of either Party herein may be
      assigned without the prior written consent of the other except by Purchaser
      to
      C&S for any reason or to an Affiliate with respect to real estate matters
      only, provided Purchaser notifies Seller within five (5) days of the applicable
      Closing.

    

                                    (b)  C&S
      hereby agrees that it is jointly and severally liable for the performance,
      obligations and liabilities of Purchaser set forth herein, and C&S further
      agrees to indemnify, defend and hold Seller harmless from any and all Losses
      accruing hereunder for a breach or default by Purchaser of an obligation set
      forth herein or arising hereunder, including Purchaser's obligations consistent
      with this Agreement, accruing under the Leases from and after the applicable
      Closing Date and under the New Orleans Sublease or accruing due to a breach
      or
      default by Purchaser with regard to the provisions relating to Affected
      Employees or Assumed Collective Bargaining Agreements set forth in this
      Agreement.  Seller may enforce this guaranty without first proceeding
      against Purchaser.  Notwithstanding the remainder of this provision,
      C&S shall be entitled to all defenses and benefits of this Agreement of
      Purchaser.  This guaranty shall survive the Closings.

    

    Section
      13.8  Coun­terparts; Facsimile Signature.  This
      Agreement may be executed in one or more counterparts, all by the Parties hereto
      in separate counterparts, each of which when executed shall be deemed to be
      an
      original but all of which taken to­gether shall constitute one and the same
      agreement.  Any Party may execute this Agreement by
      facsimile

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

    signature
      and the other Parties shall be entitled to rely on such facsimile signature
      as
      conclusive evidence that this Agreement has been duly exercised by such
      Party.

    

    Section
      13.9  No Third-Party Beneficiaries.  This Agreement
      shall be binding upon and inure solely to the benefit of the Parties and their
      permitted assigns, and nothing herein, express or implied, is intended to or
      shall confer upon an other person any legal or equitable right, benefit or
      remedy of any nature whatsoever.

    

    Section
      13.10  Severability.  If any term or other provision
      of this Agreement is invalid, illegal or incapable of being enforced by any
      law
      or public policy, all other terms and provisions of this Agreement shall
      nevertheless remain in full force and effect so long as the economic or legal
      substance of the transaction con­templated hereby is not affected in any
      manner materially adverse to any Party.  Upon such determination that
      any herein or other provi­sion is invalid, illegal or incapa­ble of
      being enforced, the Parties hereto shall negotiate in good faith to modify
      this
      Agreement so as to effect the original intent of the Parties as closely as
      possible in an acceptable manner in order that the transactions contemplated
      hereby are implemented as originally contem­plated to the greatest extent
      possible.

    

    Section
      13.11 Headings.  The descriptive headings contained in this
      Agreement are for convenience of reference only and shall not affect in any
      way
      the meaning or interpretation of this Agreement.

    

    Section
      13.12  Bulk Sales Indemnity.  Seller at Seller’s
      election shall either (i) comply with the provisions of the Uniform Commercial
      Code in effect which relate to the bulk transfer of assets; or (ii) or elect
      not
      to comply in which case, Purchaser waives compliance by Seller with the
      provisions of the Uniform Commercial Code in effect which relate to the bulk
      transfer of assets and Seller agrees to defend, indemnify and hold harmless
      Purchaser and its Affiliates from and against any and all losses, damages,
      costs
      and expenses, including reasonable attorneys’ fees, suffered by Purchaser or its
      Affiliates  by reason of or arising from Seller’s failure to comply
      with the applicable bulk sales law.  Nothing stated herein shall
      diminish Seller's obligations pursuant to Section 8.8 of this Agreement,
      including paying its share of any bulk sales tax.

    

    Section
      13.13  Public Announcement.  None of Seller, C&S
      or Purchaser shall make any public announcement with respect to the transactions
      contemplated by this Agreement without the prior written consent of the other
      party, except announcements which are required by law or Seller's New York
      Stock
      Exchange listing agreement.  Notwithstanding the preceding sentence,
      Seller and Purchaser may have discussions with the unions with respect to the
      transactions contemplated by this Agreement, provided  that the
      Parties continue to notify one another and coordinate with one another with
      respect to any such discussions.  The Parties

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

    acknowledge
      that Seller has notified the unions and Seller's employees of the transactions
      contemplated by this Agreement.  Nothing stated in this Section shall
      diminish or otherwise alter neither Seller’s nor Purchaser's obligations and
      rights pursuant to the Confidentiality Agreement.

     

    Section
      13.14 Governing Law.  This Agreement shall be governed by, and
      construed in accordance with, the laws of the State of New York, without regard
      to the principles of conflicts of laws thereof.

    

    Section
      13.15  Dispute Resolution.  (a)  Any
      controversy, claim, or dispute between the Parties, directly or indirectly,
      concerning this Agreement or the breach hereof, or the subject matter hereof,
      including questions concerning the scope and applicability of this arbitration
      clause, shall be finally settled by arbitration in New York City pursuant to
      the
      rules then applying of the American Arbitration Association, with the sole
      exception as envisioned in Section 9.6(d).  The arbitrators shall
      consist of one party representative selected by Seller, one party representative
      selected by Purchaser and one neutral representative selected jointly by the
      first two arbitrators.  The party arbitrators shall be selected within
      20 days after the commencement of the arbitration proceeding, and the neutral
      arbitrator shall be selected within 20 days of the appointment of the last
      party
      arbitrator.  The parties agree that the arbitrators’ Award shall be
      duly made in writing within thirty (30) days after the hearings in the
      arbitration proceedings are closed, and that an Award agreed upon by any two
      of
      the arbitrators shall be binding and conclusive on all of the Parties to this
      Agreement.  The arbitrators shall have the right and authority to
      assess the cost of the arbitration proceedings and to determine how their
      decision as to each issue or matter in dispute may be implemented or
      enforced.

    

                                         
      (b)   Judgment upon the Award may be sought and entered in any
      competent federal or state court located in the United States of
      America.  An application may be made to such court for confirmation of
      the Award and for any other equitable or legal remedies that may be necessary
      to
      effectuate such Award or otherwise preserve any rights for which no adequate
      remedy at law exists.

    

                          (c)   The
      Parties understand and agree that they hereby are giving up and waiving any
      claim or right to litigate in court or by a jury trial, unless or to the extent
      that such rights are specially provided for under this Agreement or cannot
      be
      waived under applicable law.

    

    [Signature
      Page Follows]

     

     

    
      
        

      

       

      *Material
        omitted and filed separately with the Securities and Exchange Commission
        pursuant to a request for confidential treatment under Rule
        24-b2.

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Parties and C&S have caused this Agree­ment to be
      executed by their duly authorized officers as of the date and year first set
      forth above.

    
 

    
      	
              THE
                GREAT ATLANTIC AND PACIFIC TEA

              COMPANY,
                INC. (on behalf of itself and any subsidiaries

              who
                are Parties to this Agreement)

            
	 
	 
	
              By: 
                __________________________________

            
	
                  Name:

            
	
                  Title:

            
	 
	 
	
              OCEAN
                LOGISTICS LLC

            
	 
	 
	
              By: 
                __________________________________

            
	
                   Name:

            
	
                    Title:

            
	 
	 
	
              For
                the limited purposes and as guarantor:

            
	 
	
              C&S
                WHOLESALE GROCERS, INC.

            
	 
	 
	
              By: 
                __________________________________

            
	
                    Name:

            
	
                    Title:

            

    

    

    
      
        
          
          

        

        
          50

          
            

          

        

        
          
          

        

      

    

     

    Exhibit
      C

    Legal
      Description of the Dunmore Owned Facility

    

    METES
      AND BOUNDS DESCRIPTION

    LOT
      1, BLOCK 1, SECTION 136.03

    BOROUGH
      DUNMORE

    LACKAWANNA
      COUNTY, COMMONWEALTH OF PENNSYLVANIA

    

    The
      surface or right of soil of that certain lot, piece, parcel, or tract of land
      situate, lying, and being in the Borough of Dunmore, County of Lackawanna and
      Commonwealth of Pennsylvania, bounded and described as follows, it
      wit:

    

    BEGINNING
      at a point in the division line between lands now or formerly of Hudson Coal
      Company, a Maine Corporation, and lands formerly of the Pennsylvania Coal
      Company, marking the Southerly corner of lands conveyed by The Hudson Coal
      Company, a Pennsylvania corporation, to Frank Urso and wife, by deed dated
      October 21, 1955, and recorded in the office for the recording of deeds in
      and for Lackawanna County in Deed Book 550 at page 592, said point of beginning
      being distant seven hundred six and eight tenths (706.8) feet, measured along
      said division line on a course of South fifty-two degrees twenty minutes East
      (S
      52° 20’ E) from its intersection with the Southeasterly line of North Blakely
      Street, also known as “O’Neill Highway”, extension of Legislative Route #168;
      thence along the Southeasterly line of lands of Frank Urso, and other lands
      formerly of Hudson Coal Company, a Maine corporation, North thirty-seven degrees
      forty minutes East (N 37° 40’ E) six hundred seventy-two and sixty-nine one
      hundredths (672.69) feet to a point on line of lands formerly of Pennsylvania
      Coal Company (now owned by Scranton Lackawanna Industrial Building Company
      “SLIBCO”); thence along the Southwesterly line of said SLIBCO lands, South
      fifty-three degrees sixteen minutes East (S 53° 16’ E) one thousand four hundred
      thirty-nine and twenty-one one-hundredths (1439.21) feet to a corner; thence
      still along lands formerly of Pennsylvania Coal Company, South thirty-seven
      degrees forty minutes West (S 37° 40’ W) six hundred ninety-six and
      forty-five one-hundredths (696.45) feet to a point on line of lands now or
      formerly of the Pennsylvania Coal Company; thence along the division line
      between lands formerly of Hudson Coal Co., a Maine corporation, and lands
      formerly of the Pennsylvania Coal Company, North fifty-two degrees twenty
      minutes West (N 52° 20’ W) one thousand four hundred thirty-nine and seven
      one-hundredths (1439.07) feet to the point of beginning.

    

    Containing
      22.616 acres, more or less, of surface.

    

    PREMISES
      ALSO DESCRIBED according to a survey made by Joseph J. Wright, PLS, of Control
      Point Associates, Inc., dated February 13, 2001.

    

    Beginning
      at a point being the southernmost corner of the herein described premises,
      said
      point being located in the Northeasterly line of lands conveyed to Gould
      Investors, Inc., as recorded in Deed Book 1096, Page 76, said beginning point
      being the same beginning point described in a Deed conveying the herein
      described premises to The Great Atlantic and Pacific Tea Company, Inc. as
      recorded in Deed Book 827, Page 640, and from said point of beginning running,
      thence;

    

    
      	
              1.  

            	
              Along
                the Southeasterly line of lands now or formerly Dunmore Hospitality
                Group,
                Inc. and lands now or formerly Price Chopper Operating Company of
                PA,
                North 37 degrees 40 minutes 00 seconds East, a distance of 673.39
                feet to
                a rebar found, thence;

            

    

    

    
      	
              2.  

            	
              Along
                the Southwesterly line of lands now or formerly Scranton Lackawanna
                Industrial Building Company, South 53 degrees 37 minutes 25 seconds
                East,
                a distance of 1,432.95 feet to a point,
                thence;

            

    

    

    
      	
              3.  

            	
              Along
                the Northwesterly line of lands now or formerly Fruehauf Trailer
                Services,
                South 37 degrees 12 minutes 56 seconds West, a distance of 696.45
                feet to
                an iron pin found on the Northeasterly line of lands now or formerly
                John
                J. Develcio, thence;

            

    

    

    
      	
              4.  

            	
              Along
                the Northeasterly side of said Develcio and said also lands now or
                formerly Bell Telephone Company, and lands now or formerly the
                aforementioned Gould Investors, Inc., North 52 degrees 42 minutes
                04
                seconds West, a distance of 1,438.10 feet to the point and place
                of
                beginning.

            

    

    

    CONTAINING
      983,128 SQUARE FEET OR 22.570 ACRES OF LAND, MORE OR LESS.

    

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

 

    Exhibit
      C-1

    Legal
      Description of the Islip Leased Facility

     

    Islip
      Leased Facility Legal Description

    

     

    ALL
      that
      certain plot, piece or parcel of land, situate, lying and being in Central
      Islip, Town of Islip, County of Suffolk, and State of New York, more
      particularly bounded and described as follows:

     

    BEGINNING
      at the intersection of the Easterly side of Lowell Avenue (Centre Avenue) and
      the southerly line of land of the Long Island Railroad (Main Line);

     

    RUNNING
      Thence along the southerly line of land and the Long Island Railroad, North
      74
      degrees 56 minutes 40 seconds East 2630.93 feet to the westerly line of Map
      of
      Pinewood Manor No. 3, filed 6/18/26 as Map No. 252;

     

    THENCE
      along said land South 07 degrees 40 minutes 00 seconds East, 780.32 feet to
      the
      northerly line of land as shown on Map of Evergreen Park filed 1/26/54 as Map
      No. 2163;

     

    THENCE
      along said last mentioned land and along the northerly line of Boulevard Avenue
      (66 feet wide) South 82 degrees 20 minutes 00 seconds West 943.08 feet to a
      point on the westerly side of Boulevard Avenue;

     

    THENCE
      along the Westerly line of Boulevard Avenue South 07 degrees 40 minutes 00
      seconds East 259.03 feet to a point on the northerly line of Map of City lots
      tract filed 2/1871 as Map No. 35;

     

    THENCE
      along said last mentioned land South 82 degrees 20 minutes 00 seconds West
      1666.00 feet to a point on the easterly line of Lowell Avenue;

     

    THENCE
      along the easterly line of Lowell Avenue North 07 degrees 40 minutes 00 seconds
      West 482.00 feet to a point;

     

    THENCE
      North 82 degrees 20 minutes 00 seconds East 125.00 feet to a point;

     

    THENCE
      North 07 degrees 40 minutes 00 seconds West 216.00 feet to a point;

     

    THENCE
      South 82 degrees 20 minutes 00 seconds West 125.00 feet to a point on the
      westerly side of Lowell Avenue;

     

    THENCE
      along the westerly side of Lowell Avenue North 07 degrees 40 minutes 00 seconds
      West 3.00 feet to the point or place of beginning.

     

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Exhibit
      C-2

    Legal
      Description of the Baltimore Leased Facility

    

     

    Baltimore
      Leased Facility Legal Description

    

     

     

    PARCEL
      I

     

     

    BEGINNING
      at a rebar found at a point being the intersection of the westerly right-of-line
      of Halethorpe Farms Road (60 foot wide right-of-way), with the southerly
      right-of-way line of Hollins Ferry Road (f.k.a. Canco Road, 60 foot wide
      right-of-way), and from said point of beginning running, thence:

     

     

    
      	
              1.

            	
              Along
                the westerly right-of-way line of Halethorpe Road, South 20 degrees
                18
                minutes 00 seconds East, a distance of 1,210.00 feet to a point,
                thence;

            

    

     

     

    
      	
              2.

            	
              Along
                the dividing line between Parcel 275 and Parcel 809, lands now or
                formerly
                Schmitt/Barnes, LLC, South 69 degrees 42 minutes 00 seconds West,
                a
                distance of 890.69 feet to a point,
                thence;

            

    

     

     

    Running
      the following courses and distances along the dividing line between Parcel
      I as
      described herein and Parcel III as further described below, both parcels having
      been conveyed to The Great Atlantic & Pacific Tea Company as recorded in
      Liber 7790 folio 127:

     

     

    
      	
              3.

            	
              Along
                the arc of a non-tangent curve to the right, having a radius of 271.01
                feet, turning a central angle of 41 degrees 54 minutes 21 seconds,
                an arc
                length of 198.22 feet, a chord bearing north 41 degrees 15 minutes
                10
                seconds west and a chord distance of 193.83 feet to a point of tangency,
                thence;

            

    

     

     

    
      	
              4.

            	
              North
                20 degrees 18 minutes 00 seconds West, a distance of 994.03 feet
                to a
                point on the southerly right-of-way line of a cul de sac located
                at the
                westerly terminus of the above mentioned Hollins Ferry Road,
                thence:

            

    

     

     

    The
      following courses and distances along the southerly right-of-way line of said
      Hollins Ferry Road:

     

     

    
      	
              5.

            	
              Along
                the arc of a non-tangent curve to the left, having a radius of 75.00
                feet,
                turning a central angle of 20 degrees 12 minutes 53 seconds, an arc
                length
                of 26.45 feet, a chord bearing North 29 degrees 36 minutes 13 seconds
                East
                and a chord distance of 26.32 feet to a point of reverse curvature,
                thence:

            

    

     

     

    
      	
              6.

            	
              Along
                the arc of a curve to the right, having a radius of 50.00 feet, turning
                a
                central angle of 50 degrees 12 minutes 29 seconds, an arc length
                of 43.82
                feet, a chord bearing North 44 degrees 35 minutes 45 seconds East
                and a
                chord distance of 42.43 feet to a point of
                tangency,

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              7.

            	
              North
                69 degrees 42 minutes 00 seconds East, a distance of 901.45 feet
                to the
                point and place of BEGINNING.

            

    

     

     

    PARCEL
      III

     

     

    BEGINNING
      at a point on the southerly right-of-way line of a cul de sac located at the
      westerly terminus of Hollins Ferry Road (f.k.a. Canco Road, 60 foot wide
      right-of-way), said point also being the terminus of the fourth course of the
      above described Parcel I, and from said point of beginning running, thence;
      the
      following two (2) courses and distances along the dividing line between the
      herein described Parcel III and the above described Parcel I:

     

     

    
      	
              l.

            	
              South
                20 degrees 18 minutes 00 seconds east, a distance of 994.03 feet
                to a
                point of curvature, thence;

            

    

     

     

    
      	
              2.

            	
              Along
                the arc of a curve to the left, having a radius of 271.01 feet, turning
                a
                central angle of 41 degrees 54 minutes 21 seconds, an arc length
                of 198.22
                feet, a chord bearing South 41 degrees 15 minutes 10 seconds East
                and a
                chord distance of 193.83 feet to a point,
                thence:

            

    

     

     

    
      	
              3.

            	
              Along
                the dividing line between Parcel 275 and Parcel 809, lands now or
                formerly
                Schmitt/Barnes, LLC, South 69 degrees 42 minutes 00 seconds West,
                a
                distance of 882.48 feet to a rebar found,
                thence;

            

    

     

     

    The
      following courses and distances along the dividing line between Parcel 275
      and
      Parcel 306 lands now or formerly CSX Transportation, Inc.:

     

     

    
      	
              4.

            	
              North
                81 degrees 30 minutes 40 seconds West, a distance of 126.92 feet
                to a
                rebar found, thence;

            

    

     

     

    
      	
              5.

            	
              North
                69 degrees 35 minutes 15 seconds West, a distance of 251.30 feet
                to a
                rebar found, thence;

            

    

     

     

    
      	
              6.

            	
              North
                13 degrees 27 minutes 00 seconds West, a distance of 338.45 feet
                to a
                point, thence;

            

    

     

     

    7.           North
      19 degrees 43 minutes 15 seconds East, a distance of 124.38 feet to a point,
      thence;

     

     

    
      	
              8.

            	
              North
                61 degrees 57 minutes 45 seconds East, a distance of 342.55 feet
                to a
                rebar found, thence;

            

    

     

     

    9.           North
      37 degrees 53 minutes 45 seconds East, a distance of 405.92 feet to a point,
      thence;

     

     

    10.           North
      09 degrees 53 minutes 30 seconds East, a distance of 339.71 feet to a point,
      thence;

     

     

    
      	
              11.

            	
              North
                69 degrees 42 minutes 00 seconds East, a distance of 33.06 feet to
                a point
                on the right-of-way line of the above mentioned cul de sac located
                at the
                westerly terminus of Hollins Ferry Road,
                thence;

            

    

     

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

     

    
      	
              12.

            	
              Along
                said cul de sac, on the arc of a non-tangent curve to the left, having
                a
                radius of 75.00 feet, turning a central angle of 96 degrees 24 minutes
                43
                seconds, an arc length of 126.22 feet, a chord bearing North 87 degrees
                54
                minutes 35 seconds East, a distance of 111.84 feet to the point and
                place
                of BEGINNING.

            

    

     

    

     

    

    

    
      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

    

    
Exhibit
      C-3

    Legal
      Description of the New Orleans Leased Facility

     

    NEW
      ORLEANS WAREHOUSE LEGAL DESCRIPTION

    

    That
      certain leasehold estate created by the Lease affecting the following described
      property:

    

    Tract
      1

    

    
      	
               

            	
              A
                certain piece or portion of ground situated in the Parish of Jefferson,
                State of Louisiana, in Section 47, Township 12 South, Range 10 East,
                Southeast Land District, East of the Mississippi River, being portions
                of
                Lots 10, 11 and 12 of the subdivision of LaBarre Plantation, as shown
                on
                plan of A. D’Hemecourt, dated May 9, 1836, which said piece or portion of
                ground is more particularly delineated on survey of F.G. Stewart,
                Civil
                Engineer and Surveyor, dated March 24, 1966, according to which said
                piece
                or portion of ground measures as follows,
                to-wit:

            

    

    

    Beginning
      at the point at which the Easterly line of Lot 10 intersects the Northerly
      line
      of Jefferson Highway, Louisiana State Highway #1; thence in a Westerly direction
      along said Northerly line of Jefferson Highway for a distance of 29.44 feet
      to
      point A, the point of beginning; thence in a Northerly direction along a line
      parallel to and lying 29 feet westerly from the Easterly line of said Lot 10
      for
      a distance of 1044.42 feet to point D; thence at an interior angle of 90 degrees
      for a distance of 373 feet in a Westerly direction to point C; thence at an
      interior angle of 90 degrees for a distance of 1109.48 feet along a line
      parallel to and lying 18 feet Westerly from the Westerly line of Lot 11 to
      point
      B on the Northerly line of Jefferson Highway; thence in an Easterly direction
      for a distance of 378.67 feet along the Northerly line of said Jefferson Highway
      to point A, the point of beginning.

    

    Tract
      2 – Right of Way and
      Passage

    

    A
      certain
      piece or portion of ground, situated in Jefferson Parish, State of Louisiana,
      in
      Section 47, Township 12 South, Range 10 East, Southeast Land District of
      Louisiana, East of the Mississippi River, being a portion of a certain lot
      designated by the Number 10 of the Sub-division of LaBarre Plantation, as shown
      on plan of A. D’Hemecourt, dated May 9, 1836, which said piece or portion of
      ground is for the free and unobstructed use of a right of way and passage,
      whether by motor vehicle, carriage, wagon or otherwise on, over and across
      the
      property more particularly described as follows:

    

    Beginning
      at a point of intersection of the Easterly line of aforesaid Lot 10 with the
      Northerly line of Jefferson Highway (State Highway No. 1); thence North 20°00’
40” East for a distance of 1039.35 feet along the Easterly line of Lot 10;
      thence North 69° 59’ 20” West for a distance of 29 feet; thence South 20° 00’
40” West a distance of 1044.42 feet to the Northerly line of Jefferson Highway;
      thence South 79° 53’ 00” East a distance of 29.44 feet to the point of
      beginning.

    

    The
      portion of ground hereinabove described is more fully shown on plan prepared
      by
      R.P. Rordam, Civil Engineer, dated New Orleans, Louisiana, July 22, 1949,
      revised December 18, 1949 and October 9, 1950, and on plan prepared by F.G.
      Stewart, Civil Engineer and Surveyor, dated New Orleans, Louisiana, March 24,
      1966.

    

    

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Exhibit
      C-4

    Legal
      Description of the New Orleans Owned Facility

    
 

    PROPERTY
      DESCRIPTION

    

    A
      certain
      piece or portion of ground situated in the Parish of Jefferson, State
      of  Louisiana, being a portion of a larger tract of land known as
      Elmwood Plantation in Section 43, Township 13 South, Range 10 East of the St.
      Helena Meridian, east of the City of Harahan and north of Jefferson
      Highway:

     

    Which
      said portion of ground is designated as Lot "AP-2" on plan of subdivision made
      by J. J. Krebs & Sons, C.E. & S., dated March 16, 1977 approved by the
      Jefferson Parish Council on April 14, 1977, being a resubdivision of Lot "AP-1",
      under Ordinance No. 12815, duly registered in COB 890,  folio 810, on
      April 25, 1977 and according to which the said lot "AP-2" is described and
      measures as follows:

     

    Commencing
      at the intersection of the boundary line between Section 43 and
      Section 44 and the original northwesterly line of the Jefferson Highway;
      thence along the original northwesterly line of the Jefferson Highway South
      30 degrees 7 minutes 4 seconds West, a distance of
      628.33 feet to a Point of Beginning; thence continuing along the
      northwesterly line of the Jefferson Highway South 30 degrees 7 minutes
      4 seconds West a distance of 412.58 feet to a point; thence North
      47 degrees 26 minutes 11 seconds West a distance of
      586.77 feet to a point; thence along the arc of a curve to the left having
      a radius of 309.62 feet a distance of 455.25 feet; thence North
      48 degrees 50 minutes 6 seconds West a distance of 4.45 feet
      to the intersection of the southeasterly line of a right-of-way to the Illinois
      Central Railroad Co.; thence along said southeasterly right-of-way line North
      41 degrees 9 minutes 54 seconds East a distance of
      322.58 feet to a point; thence continuing along said southeasterly
      right-of-way line measuring along the arc of a curve to the right having a
      radius of 580.37 feet a distance of 114.91 feet to a point of compound
      curve; thence continuing along said right-of-way measuring along the arc of
      a
      second curve to the right having a radius of 373.06 feet a distance of
      206.72 feet to a point; thence continuing along said right-of-way line
      North 84 degrees 15 minutes 30 seconds East a distance of
      58.47 feet to a point on the southwesterly property line of the property
      now or formerly belonging to Max Tobins and Morris E. Burke; thence
      along said southwesterly property line South 48 degrees 53 minutes
      00 seconds East a distance of 682.66 feet to the Point of
      Beginning.

     

    Being
      a
      part of the same property acquired by the Great Atlantic & Pacific Tea
      Company, Inc. from the Illinois Central Railroad Company by act before
      Frederick A. Kullman, Notary Public, dated February 28, 1967 and duly
      registered in COB 653, folio 162 under Entry #386868 on March 8,
      1967, Parish of Jefferson, State of Louisiana.

     

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

      Exhibit
        C-5

      Legal
        Description of Baltimore Owned Facility

      

       

      BEGINNING
        FOR THE SAME, AT A POINT, IN THE WESTERLY RIGHT OF WAY LINE OF HALETHORPE
        FARMS
        ROAD, SAID POINT BEING LOCATED SOUTH 20 DEGREES 18 MINUTES EAST 148.00 FEET
        FROM
        THE CENTER LINE OF FOUR TRACKS OF THE BALTIMORE AND OHIO RAILROAD COMPANY’S MAIN
        LINE AT VALUATION STATION 686 + 90; SAID POINT BEING THE SAME POINT OF BEGINNING
        MENTIONED IN A DESCRIPTION OF PARCEL 2, IN A DEED FROM HALETHORPE WAREHOUSE
        CORPORATION TO THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES,
        RECORDED AMONG THE LAND RECORDS OF BALTIMORE COUNTY IN LIBER 5361, FOLIO
        694;
        THENCE, RUNNING WITH AND BINDING ON SAID RIGHT OF WAY AND ALSO RUNNING WITH
        AND
        BINDING ON THE 1ST AND PART
        OF THE
        SECOND LINE OF SAID DEED; 1) SOUTH 20 DEGREES 18 FEET EAST 192.0 FEET TO
        A POINT
        IN THE NORTHERLY RIGHT OF WAY LINE OF HOLLINS FERRY ROAD (FORMERLY CANCO
        ROAD);
        THENCE, RUNNING WITH AND BINDING ON SAID RIGHT OF WAY 2) SOUTH 69 DEGREES
        42
        MINUTES WEST 901.45 FEET TO A POINT; THENCE, LEAVING SAID RIGHT OF WAY AND
        RUNNING WITH THE NEW RIGHT OF WAY LINE OF HOLLINS FERRY ROAD AS PER A DEED
        FROM
        HALETHORPE WAREHOUSE CORPORATION TO BALTIMORE COUNTY IN LIBER 4845, FOLIO
        084,
        THE 2 (TWO) FOLLOWING COURSES AND DISTANCES; BY A CURVE TO THE RIGHT HAVING
        A
        RADIUS OF 50.0 FEET AND AN ARC LENGTH OF 43.82 FEET, SUBTENDED BY A CHORD
        HAVING
        A BEARING AND DISTANCE OF 3) NORTH 83 DEGREES 11 MINUTES 45 SECONDS WEST
        42.43
        FEET TO A POINT; THENCE, BY A CURVE TO THE LEFT HAVING A RADIUS OF 75.0 FEET
        AND
        AN ARC LENGTH OF 26.45 FEET, SUBTENDED BY A CHORD HAVING A BEARING AND DISTANCE
        OF 4) NORTH 70 DEGREES 12 MINUTES 13 SECONDS WEST 26.32 FEET TO A POINT;
        THENCE,
        LEAVING SAID RIGHT OF WAY AND RUNNING WITH AND BINDING ON PART OF THE 3RD LINE
        SAID DEED
        FROM HALETHORPE WAREHOUSE CORPORATION TO THE EQUITABLE LIFE ASSURANCE SOCIETY
        OF
        THE UNITED STATES, 5) NORTH 20 DEGREES 18 MINUTES WEST 157.05 FEET TO A POINT;
        THENCE, WITH THE 4TH LINE
        OF THE FIRST
        MENTIONED DEED 6) NORTH 69 DEGREES 42 MINUTES EAST 960.0 FEET TO THE
        BEGINNING.

       

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    
      Exhibit
        D

      Form
        of
        Assignment

      

      FORM
        OF LEASE ASSIGNMENT AND ASSUMPTION AGREEMENT

      

      [May
        need to add name and address of preparer, state specific notary or other
        stylistic changes based on requirements of title company and/or recording
        office.]

      

      THIS
        LEASE ASSIGNMENT AND ASSUMPTION
        AGREEMENT (this "Agreement") is made as of ______ __, 2005, by and
        between ___________________ ("As­sign­or") and Ocean Logistics
        LLC ("Assignee").

       

      W
        I T N E S S E T H

      

      WHEREAS,
Assignor
        is
        the tenant under that certain lease (the "Lease") described on Schedule A
        attached hereto and made a part hereof;

       

      WHEREAS,
        the Lease
        affects certain premises more particularly described therein (the premises
        which
        is the subject of the Lease is herein­after called the "Premises");
        the real estate of which the Premises is a part is hereinafter called the
        "Property"), which Property is more particularly described on Schedule B
        attached hereto;

      

      WHEREAS,
Assignor,
        Assignee and certain other parties are parties to a certain Asset Purchase
        Agreement, dated as of ____ __, 2005 (the "Asset Purchase Agreement"),
        pursuant to which, among other things, Assignor agreed to sell, and Assignee
        has
        agreed to acquire certain assets, including, without limitation, the
        Lease.

      

      WHEREAS,
        in connection
        with the transactions contemplated by the Asset Purchase Agreement, Assignor
        desires to sell, assign, transfer and convey to Assignee, and Assignee desires
        to accept an assignment from Assignor, of Assignor's right, title and interest
        in and to the Lease, the Premises and the Property upon and subject to the
        terms
        and conditions hereinafter set forth.

      

      NOW,
        THEREFORE, in
        consideration of the premises and the mutual covenants and agreements set
        forth
        herein and in the Asset Purchase Agreement, and for other good and valuable
        consideration, the receipt and sufficiency of which are hereby acknowledged,
        the
        parties hereto agree as follows:

      

      1.            Assignment.  Effective
        as of date hereof (the “Effective Date”), Assign­or assigns, transfers, sets
        over and conveys to Assignee, its successors and assigns, all of Assignor's
        right, title and interest in and to (i) the Lease, including all renewal
        options
        granted therein, and (ii) the Premises, together with all of the appurtenant
        rights and easements thereby demised.

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      2.            Acceptance
        of Assignment and Assumption of Obligations and
        Liabilities.  Assign­ee hereby fully and completely
        accepts the assignment pursuant to Section 1 above, and assumes each and
        every
        obligation which is to be performed by the tenant under the Lease from and
        after
        the Effective Date.  Assignee hereby covenants and agrees to
        indemnify, save and hold harmless Assignor and its affiliates, successors
        and
        assigns, from and against any and all liabilities, claims or causes of action
        existing in favor of or asserted by the landlord under the Lease or by any
        third
        party, arising out of or related to the Lease or Premises, Assignee’s use or
        occupancy of the Premises or Assignee’s failure to perform any of its
        obligations arising under the Lease on or after the Effective Date of this
        Assignment.  Assignor hereby covenants and agrees to indemnify, save
        and hold harmless Assignee and its affiliates, successors and assigns, from
        and
        against any and all liabilities, claims or causes of action existing in favor
        of
        or asserted by the landlord under the Lease or by any third party, arising
        out
        of or related to the Lease or Premises, Assignor’s use or occupancy of the
        Premises or Assignor’s failure to perform any of its obligations arising under
        the Lease prior to the Effective Date of this Agreement, or which may incur
        as a
        result of a breach of Assignor's warranties as set forth herein.

      

      3.           Representations
        and Warranties.  Assignor warrants that it is the owner
        and holder of a good leasehold estate in the Premises pursuant to the Lease,
        and
        Assignor has full authority to assign same as aforesaid.  Assignor
        hereby reaffirms its representations and warranties relating to the Lease,
        the
        Premises and the Property as set forth in the Asset Purchase
        Agreement.

      

      4.           No
        Third Party Beneficiaries.  This Agreement is for the
        sole and exclusive benefit of Assignor and Assignee and their respective
        successors and permitted assigns, and nothing herein is intended or shall
        be
        construed to confer upon any person other than Assignor, Assignee and their
        respective successors and permitted assigns, any right, remedy or claim under
        or
        by reason of this Agreement or any term, covenant or condition
        hereof.

      

      5.           Miscellaneous.  This
        Agreement shall be governed by the laws of the State of
        __________.  This Agree­ment may not be amended except by a
        document signed by all parties hereto.

      

      6.           Counterparts.  This
        Agreement may be executed in any number of counter­parts, each of which when
        so executed and delivered shall be deemed an original and all of which when
        taken together shall constitute but one and the same instrument.

      

      7.           Notice.  Any
        notices to be given hereunder shall be in writing and delivered personally
        or
        mailed by certified mail, postage prepaid, return receipt requested, as
        follows:

      

      

      If
        to Assignor, addressed
        to:

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      ____________________________

      _____________________________

      ______________________________

      Attn:  __________________________

      

      If
        to Assignee, addressed
        to:

      

      ____________________________

      ________________________________

      __________________________________

      Attn:_______________________________

      

      8.           Capitalized
        Terms.  Capitalized terms used herein
        but not defined shall have the meanings assigned to such terms in the Asset
        Purchase Agreement.

      

      9.           Tax
        Status.  Purchaser is not a tax-exempt
        entity (within the meaning of Section 168(h) of the Code) or a debtor or
        debtor-in-possession in a voluntary or involuntary bankruptcy
        proceeding.

      

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

      

      

      
        	
                 

              	
                ASSIGNOR:

              	
                _____________________________,

              

      

      
        	
                 

              	
                a
                  _______ _______________________

              

      

      

      

      
        	
                 

              	
                By:

              	
                __________________________

              

      

      Name:

      Title:

      

      

      
        	
                 

              	
                ASSIGNEE:

              	
                ___________________________,

              

      

      
        	
                 

              	
                a
                  ______ ________________________

              

      

      

      

      
        	
                 

              	
                By:

              	
                __________________________

              

      

      Name:

      Title:

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      STATE
        OF
        _________________

      

      ,
        ss.

      

      On
        this ____ day of ______, 2005 before
        me, the undersigned notary public, personally appeared
        _______________________________, proved to me through satisfactory evidence
        of
        identification, which were _________________________, to be the person whose
        name is signed on the preceding or attached document, and acknowledged to
        me
        that he/she signed it voluntarily for its stated purpose as
        ____________________________ for ________, a _______
        _________________.

      

      

      

      ________________________________

      Notary
        Public

      My
        commission expires:

      

      

      STATE
        OF
        _____________________

      

      ,
        ss.

      

      On
        this ____ day of ______, 2005 before
        me, the undersigned notary public, personally appeared
        _______________________________, proved to me through satisfactory evidence
        of
        identification, which were personal knowledge, to be the person whose name
        is
        signed on the preceding or attached document, and acknowledged to me that
        he/she
        signed it voluntarily for its stated purpose as the _______________________
        for
        ___________________, a ______ ___________________________.

      

      

      

      ________________________________

      Notary
        Public

      My
        commission expires:

      SCHEDULE
        A

       

      

      LEASE
        DESCRIPTION

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        B

      

      LEGAL
        DESCRIPTION

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Exhibit
        E

      New
        Orleans Sublease

      

      Key
        Number

      [location]

      [location]

      [date]

      

      AGREEMENT
        OF SUBLEASE

      

      THIS
        AGREEMENT, made
        this _______ day of ________, 2005, by and between THE GREAT ATLANTIC
& PACIFIC TEA COMPANY, INC., a Maryland corporation, with offices
        at 2 Paragon Drive, Montvale, New Jersey 07645 (hereinafter called the
        "Sublandlord"), and OCEAN LOGISTICS LLC, a Delaware limited
        liability company, with offices at 7 Corporate Drive, Keene, New Hampshire
        03431
        (hereinafter called the "Subtenant").

      

      W
        I T N E S S E T H :

      WHEREAS,
        Sublandlord
        is presently the tenant of a certain warehouse premises containing approximately
        276,000 square feet of space located at Jefferson Highway in Southport, Parish
        of Jefferson, State of Louisiana, which premises (hereinafter called the
        "Premises") are more particularly described in Exhibit A attached hereto
        and made a part hereof; and

      WHEREAS,
        said
        occupancy is pursuant to a lease dated October 14, 1950 by and between
        Jones-Brown Realty Company, Inc., as landlord, and Sublandlord, as tenant,
        which
        lease has been amended as listed on Exhibit B attached hereto and made a
        part hereof and the landlord’s interest in the Premises is currently vested in
        Alton Ochsner Medical Foundation (said landlord is hereinafter referred to
        as
        the “Overlandlord” and said lease and amendments are hereinafter collectively
        called the "Overlease").  A true and correct copy of the Overlease has
        previously been provided by Sublandlord to Subtenant and Subtenant hereby
        acknowledges receipt of the Overlease; and

      WHEREAS,
        Sublandlord
        is desirous of subletting the Premises to Subtenant and Subtenant is desirous
        of
        subletting same from Sublandlord.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      NOW,
        THEREFORE, in
        consideration of the mutual promises, covenants and conditions hereinafter
        set
        forth, it is mutually agreed as follows:

      

      1.  PREMISES.  Sublandlord
        hereby sublets the Premises to Subtenant and Subtenant hereby sublets the
        Premises from Sublandlord for use as a warehouse and any other lawful purpose
        permitted under the Overlease, upon the terms and conditions set forth
        herein.

       

      2.  TERM.  The
        term of this Sublease shall commence on the 25th day of September, 2005,
        and
        shall continue up to and including 12:00 midnight on December 30,
        2007.  Subtenant shall have the option to extend the term of this
        Sublease to midnight on December 30, 2012 by giving Sublandlord written notice
        thereof not later than June 1, 2007.  If Subtenant shall give such
        notice to extend the term of this Sublease, Sublandlord shall promptly exercise
        its renewal option under Section 2 of the Seventh Lease Amendment referenced
        on
Exhibit B hereto to extend the term of the Overlease through December 31,
        2012.

       

      3.  RENTAL.  Subtenant
        hereby agrees to pay to Sublandlord fixed annual rental in the amounts set
        forth
        below, payable in equal monthly installments in advance on the first day
        of each
        month during the term of this Sublease in the amounts set forth
        below:

       

      
        	
                Period

              	
                Fixed
                  Annual  Rent

              	
                Fixed
                  Monthly Rent

              
	
                9/25/05
                  – 12/31/05

              	
                $829,980.72

              	
                $69,165.06

              
	
                1/1/06
                  – 12/31/06

              	
                $854,880.12

              	
                $71,240.01

              
	
                1/1/07
                  – 12/30/07

              	
                $880,526.52

              	
                $73,377.21

              
	 	 	 
	
                Renewal
                  Term

              	
                Fixed
                  Annual  Rent

              	
                Fixed
                  Monthly Rent

              
	
                1/1/08
                  – 12/31/08

              	
                $906,942.24

              	
                      $75,578.52

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                1/1/09
                  – 12/31/09

              	
                $934,150.56

              	
                $77,845.88

              
	
                1/1/10
                  – 12/31/10

              	
                $962,175.12

              	
                $80,181.26

              
	
                1/1/11
                  – 12/31/11

              	
                $991,040.28

              	
                $82,586.69

              
	
                1/1/12
                  – 12/30/12

              	
                $1,020,771.48

              	
                $85,064.29

              

      

      

       

      

       

      Fixed
        rent shall be paid to Sublandlord at 6430 Payshere Circle, Chicago, IL 60674
        or
        such other address as Sublandlord may designate by notice to
        Subtenant.  All rental and other payments to be made by Subtenant to
        Sublandlord shall be made by check.  At Subtenant’s option, rental or
        other payments may be made by wire transfer to an account designated by
        Sublandlord.  Subtenant shall identify its rental and other payments
        as being on account of the New Orleans Warehouse or by such other designation
        as
        Sublandlord may request in writing.  Rental payments shall commence
        upon the commencement of the term, as hereinabove provided.  All
        rental and other payments to be made by Subtenant to Sublandlord shall be
        made
        without setoff, deduction or reductions of any kind in any amount for any
        reason
        whatsoever.  This clause shall not be construed to prohibit rent
        abatement in the event of casualty or a taking by means of eminent domain
        only
        if and to the extent provided for in the Overlease.

       

      4.  REPRESENTATIONS.  To
        induce Subtenant to enter into this Sublease, Sublandlord hereby warrants
        and
        represents to Subtenant that:

       

      A.  The
        Overlease is presently in full force and effect and no default exists
        thereunder.

       

      B.  A
        true,
        correct and complete copy of the Overlease, including all amendments thereto,
        has been delivered by Sublandlord to Subtenant, Exhibit B sets forth an
        accurate schedule of the Overlease, including all amendments and modifications
        thereto and the Overlease has not been further amended or modified in any
        respect.

       

      C.  Sublandlord
        has full corporate authority to enter into this Sublease, this Sublease has
        been
        duly authorized, executed and delivered by Sublandlord, this Sublease is
        legally
        binding on Sublandlord and is enforceable against Sublandlord in accordance
        with
        its terms.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      D.  Sublandlord
        has not previously assigned, sublet, mortgaged or otherwise encumbered its
        interest in the Overlease.

       

      5.  OVERLEASE.

       

      A.  All
        the
        obligations contained in the Overlease conferred and imposed upon Sublandlord
        (as tenant therein) except as modified and amended by this Sublease, are
        hereby
        conferred and imposed upon Subtenant, but only those obligations which accrue
        during the term of this Sublease, and all rights and benefits granted to
        Sublandlord (as tenant under the Overlease), except as modified and amended
        by
        this Sublease, are conferred upon Subtenant, but only to the extent they
        apply
        during the term of this Sublease.  Subtenant covenants and agrees to
        fully and faithfully perform the terms and conditions of the Overlease and
        the
        Sublease on its part to be performed during the term of the
        Sublease.  Subtenant shall not do or cause to be done or suffer or
        permit any act to be done which would or might cause the Overlease, or the
        rights of Sublandlord, as tenant, under the Overlease, to be endangered,
        cancelled, terminated, forfeited or surrendered, or which would or might
        cause
        Sublandlord to be in default thereunder or liable for any damage, claim or
        penalty.  Subtenant agrees, as an express inducement for Sublandlord's
        executing this Sublease, that if there is any conflict between the provisions
        of
        this Sublease and the provisions of the Overlease which would permit Subtenant
        to do or cause to be done or suffer or permit any act or thing to be done
        which
        is prohibited by the Overlease then the provisions of the Overlease shall
        prevail.  If the Overlease terminates or is terminated for any reason
        whatsoever, then this Sublease shall terminate simultaneously
        therewith.  Sublandlord covenants and agrees:  (i) to comply
        with the covenants and agreements of Sublandlord as lessee under the Overlease
        except to the extent assumed by Subtenant hereunder, including the payment
        of
        rent and additional rent; and (ii) not to terminate, modify or otherwise
        amend
        the Overlease without the prior written consent of Subtenant, which consent
        shall not be unreasonably withheld, conditioned or delayed.

       

      B.  During
        the term of this Sublease, Subtenant shall pay to Sublandlord, as additional
        rent, any and all sums (except fixed annual rent payable under the Overlease)
        due pursuant to the Overlease and accruing during the term of this
        Sublease.  Subtenant shall pay the aforesaid sums on or before such
        sums are due and payable under the Overlease.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      C.  Sublandlord
        shall have no duty to perform any obligations of the Overlandlord under the
        Overlease and shall under no circumstances be responsible for or liable to
        Subtenant for any default, failure or delay on the part of the Overlandlord
        in
        the performance of any obligations under the Overlease, nor shall such default
        of the Overlandlord affect this Sublease or waive or defer the performance
        of
        any of Subtenant's obligations hereunder; provided, nevertheless, that in
        the
        event of any such default or failure of performance by Overlandlord, Sublandlord
        agrees, upon notice from Subtenant, to make written demand upon Overlandlord
        to
        perform its obligations under the Overlease and to use reasonable business
        efforts to cause Overlandlord to perform its obligations under the
        Overlease.  Subtenant shall have the right in the name of Sublandlord
        to bring an action against Overlandlord to compel Overlandlord to perform
        its
        obligations under the Overlease.  At the request of Subtenant but
        without expense to Sublandlord, Sublandlord shall execute such documents
        and
        otherwise cooperate with Subtenant in any action to compel Overlandlord to
        perform its obligations under the Overlease. Subtenant agrees to defend,
        indemnify and hold Sublandlord harmless from and against any and all expense,
        loss, claims or liability, including reasonable attorneys' fees, arising
        out any
        such suit against Overlandlord or other action by Subtenant to compel
        Overlandlord to perform its obligations under the Overlease.

       

      D.  During
        the term of this Sublease, Sublandlord shall use good faith efforts to send
        to
        Subtenant copies of all notices which Sublandlord shall receive from
        Overlandlord, and, within three (3) business days after Sublandlord receives
        the
        same, shall send copies of all default and other notices from Overlandlord
        or
        other parties concerning the Overlease or the Premises that will or could
        have a
        material impact on Subtenant’s use and occupancy of the Premises.

       

      6.  DEFAULT.

       

      A.  If
        Subtenant defaults in the performance of any of its obligations hereunder,
        and
        such default continues for five (5) days after the giving of notice of such
        default with respect to the failure to pay any monies, or twenty (20) days
        after
        the giving of notice of default with respect to the failure to perform or
        comply
        with any non-monetary obligations of Subtenant hereunder, or if Subtenant
        fails
        to perform or observe any of the provisions required by it to be performed
        or
        observed by Subtenant under any other agreement relating to the Premises
        or
        under any equipment agreement, promissory note, conditional sales contract
        or
        other instrument executed by Subtenant in connection with obtaining equipment
        for use in the Premises after any ap-

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      plicable
        notice and cure period, then Sublandlord may at its option terminate this
        Sublease upon giving ten (10) days notice of termination to Subtenant, in
        which
        event neither Subtenant nor the guarantor nor any person claiming through
        or
        under Subtenant or the guarantor by virtue of any statute or an order of
        any
        court shall be entitled to possession or to remain in possession of the Premises
        but shall forthwith quit and surrender the Premises.  Subtenant shall
        have reasonable additional time beyond twenty (20) days to cure a non-monetary
        default if Subtenant has commenced to cure same within said twenty (20) days
        and
        thereafter proceeds with due diligence to cure same.

       

      B.  In
        the
        event that Subtenant shall default under this Sublease and such default shall
        entitle Sublandlord to possession of the Premises as hereinabove provided,
        Sublandlord shall have the right to enter the Premises, remove Subtenant's
        property and effects, take and hold possession thereof, without terminating
        this
        Sublease or releasing Subtenant in whole or in part, from Subtenant's
        obligations to pay rent and additional rent and all its other obligations
        hereunder for the full term, relet the Premises or any part thereof, either
        in
        the name or for the account of Subtenant or Sublandlord, for such rent and
        for
        such term or terms as Sublandlord may see fit, which term may, at Sublandlord's
        option, extend beyond the balance of the term of this Sublease; provided,
        however, that Sublandlord shall not be obligated to relet the Premises nor
        shall
        Sublandlord be required to accept any tenant offered by Subtenant, or to
        observe
        any instructions given by Subtenant about such reletting.  In any such
        case, Sublandlord may make such repairs, alterations and additions in and
        to the
        Premises and redecorate the same as it sees fit.  Subtenant shall pay
        Sublandlord any deficiency between the rent hereby reserved and covenanted
        to be
        paid and the net amount of the rents collected on such reletting, for the
        balance of the term of this Sublease, as well as any reasonable expenses
        incurred by Sublandlord in such reletting including, but not limited to broker's
        fees, attorney's fees, the expense of repairing, altering and redecorating
        the
        Premises and otherwise preparing the same for rerental, all of such expenses
        shall be prorated if such reletting extends beyond the term of the Sublease
        and
        shall be paid by Subtenant as additional rent upon demand by
        Sublandlord.  Any deficiency in rental shall be paid in monthly
        installments, upon statements rendered by Sublandlord to
        Subtenant.  For the purpose of determining the deficiency in rent,
        whether payable in installments or the entire rental for the balance of the
        term, the rent reserved shall be deemed to be the guaranteed minimum rental
        herein provided

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      for,
        as
        reduced by any rent collected by reletting.  Any suit brought to
        collect the amount of the deficiency for any one or more months shall not
        preclude any subsequent suit to collect the deficiency for any subsequent
        months.

       

      C.  In
        addition to the rights granted to Sublandlord pursuant to Paragraph 6.B.,
        Sublandlord may require that, upon any termination of this Sublease, whether
        by
        lapse of time, the exercise of any option by Sublandlord to terminate the
        same,
        or in any other manner whatsoever, or upon any termination of Subtenant's
        right
        to possession without termination of this Sublease, Subtenant shall at once
        surrender possession of the Premises to Sublandlord and immediately vacate
        the
        same, and shall remove all its effects therefrom except any fixtures and
        equipment leased from Sublandlord or in which Sublandlord has a security
        interest.  If Subtenant fails to do so, Sublandlord may, upon three
        (3) days' notice, reenter the Premises, by process of law, and repossess
        itself
        thereof as in its former estate and expel and remove Subtenant and any other
        person and properties therefrom, and without thereby waiving Sublandlord's
        rights to rent or any other rights given Sublandlord under this Sublease
        or at
        law or in equity.

       

      D.  If
        Subtenant is in default of its obligations under this Sublease, Sublandlord
        can
        cure the default after giving Subtenant two (2) business days written notice
        of
        its intention to do so, and Subtenant shall forthwith pay to Sublandlord,
        as
        additional rent, a sum of money equal to all amounts reasonably expended
        by
        Sublandlord in curing such default.  If suit is brought by Sublandlord
        on account of any such default and if such default is established, Subtenant
        shall pay to Sublandlord all reasonable expenses of such suit, including
        without
        limitation, reasonable attorneys' fees; alternatively, if such default is
        not
        established, Sublandlord shall pay Subtenant all reasonable expenses incurred
        by
        Subtenant, including without limitation, reasonable attorney
        fees.  Any payment by Subtenant of a sum of money less than the entire
        amount due Sublandlord at the time of such payment shall be applied to the
        obligations of Subtenant then furthest in arrears.  No endorsement or
        statement on any check or accompanying any payment shall be deemed an accord
        and
        satisfaction and any payment accepted by Sublandlord shall be without prejudice
        to Sublandlord's right to obtain the balance due or pursue any other remedy
        available to Sublandlord both in law and in equity.

       

      E.  If
        Subtenant defaults in any payment of rent or additional rent, interest shall
        accrue thereon from the due date until paid at interest at the Prime Rate
        (as
        hereinafter defined)

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      per
        annum
        plus two percent (2%) per annum, or if such rate is illegal, at the highest
        rate
        permitted by law (hereinafter called the "Lease Interest
        Rate").  Prime Rate shall mean the rate per annum publicly announced
        from time to time by Morgan Guaranty Trust Company of New York as its Prime
        Rate
        in effect at its principal office in New York City and each change in the
        Prime
        Rate shall be effective on the date such change is publicly
        announced.

       

      F.  If,
        at
        any time during the term of this Sublease, there shall be filed by or against
        Subtenant or any guarantor of this Sublease, in any court pursuant to any
        statute either of the United States or any state, a petition in bankruptcy
        or
        insolvency or for the reorganization or for the appointment of a receiver,
        trustee or liquidator of all or any portion of Subtenant's or guarantor’s
        property or if Subtenant or guarantor makes an assignment for the benefit
        of
        creditors, or if Subtenant or guarantor admits in writing its inability to
        pay
        its debts, and if, within thirty (30) days thereafter, Subtenant or guarantor
        fails to secure a discharge thereof, this Sublease, at the option of Sublandlord
        may be cancelled and terminated, in which event neither Subtenant nor guarantor
        nor any person claiming through or under Subtenant or guarantor by virtue
        of any
        statute or an order of any court shall be entitled to possession or to remain
        in
        possession of the Premises but shall forthwith quit and surrender the
        Premises.

       

      G.  In
        addition to any and all remedies set forth herein, Sublandlord shall have
        all
        remedies available at law or in equity and any and all remedies shall be
        cumulative and nonexclusive.

       

      7.  NO
        REPRESENTATIONS OR WARRANTIES.  Sublandlord makes no
        representations or warranties with respect to this transaction or the Premises,
        except as specifically set forth herein or in the Asset Purchase Agreement
        (the
“Asset Purchase Agreement”) dated ____, 2005 by and among, inter alia,
        Sublandlord, as Seller, Subtenant, as Purchaser.

       

      8.  MECHANICS
        LIENS.  Subtenant shall permit no mechanics liens to be
        placed against the Premises or any portion thereof and shall cause any contracts
        entered into by it for work to be done at the Premises in excess of $1 million
        to contain a waiver of the contractors' right to file a mechanics
        lien.

       

      9.  INDEMNITY.  Subtenant
        hereby agrees to assume responsibility for the condition of the Premises
        from
        and after the Commencement Date and agrees to defend, indemnify

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      and
        hold
        Sublandlord harmless from and against any and all expense, loss, claims or
        liability including reasonable attorneys' fees (including those arising out
        of
        enforcement of this indemnity provision) arising out of or in connection
        with
        any act or omission of Subtenant, its agents, contractors or employees during
        the term of this Sublease, including, but not limited to, claims as a result
        of
        injury to or death of any person, property damage, claims of employees of
        Subtenant or arising out of or in connection with Subtenant's use and possession
        of the Premises, or its breach of the Sublease (including the terms of the
        Overlease) except, in each case, expense, loss, claims or liability arising
        out
        of the negligence or willful misconduct of Sublandlord, its agents or
        employees.  Sublandlord agrees to defend, indemnify and hold Subtenant
        harmless from and against any and all expense, loss, claims or liability
        including reasonable attorneys’ fees (including those arising out of enforcement
        of this indemnity provision) arising out of or in connection with (x) any
        act or
        omission of Sublandlord, its agents, contractors or employees during the
        term of
        this Sublease, (y) Sublandlord's use and occupancy of the Premises prior
        to the
        term of this Sublease, and (z) Sublandlord's breach of this Sublease, such
        indemnity to include, without limitation, claims as a result of injury to
        or
        death of any person, property damage, and claims of employees of Subtenant,
        except, in each case, expense, loss claims or liability arising out of the
        negligence or willful misconduct of Subtenant, its agents or employees or
        if
        Subtenant's breach of this Sublease directly causes
        Sublandlord's  breach of the Overlease.

       

      10.   RESTORATION.  Subtenant
        shall remove alterations to the Premises made by Subtenant which are required
        to
        be removed by the Overlease or by Overlandlord as well as all of Subtenant’s
        trade fixtures and equipment prior to the expiration or sooner termination
        of
        the term hereof and shall repair all damage caused by such
        removal.  Otherwise, Subtenant shall surrender the Premises in the
        same condition as the Premises are on the Commencement Date, ordinary wear
        and
        tear and damage by casualty which Subtenant is not required to restore hereunder
        excepted.

       

      11.  NOTICES.  All
        notices, demands, submissions and consents required hereunder shall be in
        writing and shall be deemed given if sent by certified mail, return receipt
        requested, postage prepaid, (a) to Subtenant, at the address of Subtenant
        as
        hereinabove set forth, attention to Chief Executive Officer, or such other
        address as Subtenant may designate by notice to Sublandlord, then in duplicate
        under separate cover, to the attention to the Chief Financial
        Officer

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      and
        General Counsel, at the same address, or (b) to Sublandlord, then in duplicate
        under separate cover, one copy to the attention of the Vice President of
        A&P
        Properties and one copy to the attention of the Office of the General Counsel
        of
        Sublandlord, both at the address of Sublandlord as hereinabove set forth,
        or
        such other addresses as Sublandlord may designate by notice to
        Subtenant.

       

      12.  INSURANCE.

       

      A.  Property
        Insurance.  If Sublandlord is required under the Overlease to
        provide insurance covering the Premises against loss by fire or other casualty,
        then the Subtenant shall be responsible for obtaining same at Subtenant's
        sole
        cost and expense and Subtenant shall name Sublandlord as an additional insured,
        and shall also name such other additional parties as may be required under
        the
        Overlease.  Subtenant and Sublandlord each hereby waive all rights or
        recovery against the other and its agents and employees for damage or
        destruction to any and all of the improvements in or on the Premises, including
        but not limited to fixtures, equipment and inventory, arising out of fire
        or
        other casualty whether or not caused by acts or negligence of Subtenant or
        Sublandlord and/or their respective agents and employees.

       

      B.  Public
        Liability.  Subtenant will deliver to Sublandlord evidence of
        general liability, bodily injury, and property damage in amounts not less
        than
        that required under the Overlease:  Subtenant will name Sublandlord as
        an additional insured under the policy and will show evidence that the
        hold-harmless agreement set forth in Article 9 is covered and recognized
        by the
        insurance company.  Such policy or policies shall include a provision
        that at least ten (10) days prior written notice of cancellation be given
        to
        Sublandlord.

       

      C.  Sublandlord
        shall not be required to maintain any insurance hereunder.

       

      13.  ALTERATIONS.  Subtenant
        may make such alterations or additions to the Premises as are permitted to
        be
        made by the Overlease, and such other alterations or additions as may be
        approved by Overlandlord.  If any alterations or additions made by
        Subtenant  are required to be removed by the Overlease or by
        Overlandlord, Subtenant shall remove the same and repair any damage caused
        by
        such removal.  Subtenant shall have no obligation to remove any
        alterations made to the Premises by Sublandlord prior to the term of this
        Sublease.

       

      14.  CONDEMNATION
        AND CASUALTY; CONDEMNATION PROCEEDS.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      A.  Subject
        to the last sentence of this Paragraph 14 A, if any portion of the Premises
        is
        taken by condemnation or similar proceeding, or if the warehouse building
        on the
        Premises is damaged or destroyed by fire or other casualty in whole or in
        part
        during the term of this Sublease, Subtenant shall have the option to terminate
        this Sublease by giving written notice thereof to Sublandlord within thirty
        (30)
        days after Subtenant  receives notice of such condemnation, or within
        thirty (30) days following such damage or destruction, as the case may be,
        in
        which case, this Sublease shall terminate as of the date of such condemnation
        or
        casualty, as the case may be, and Sublandlord shall refund to Subtenant any
        prepaid Rent.  If Subtenant does not elect to terminate this Sublease
        as provided above, this Sublease shall continue and Sublandlord shall not
        exercise any right it may have under the Overlease to terminate the
        Overlease.  Notwithstanding anything herein to the contrary, Subtenant
        cannot terminate this Sublease upon the occurrence of a condemnation or casualty
        unless Sublandlord has a right to terminate the Overlease upon the occurrence
        of
        such condemnation or casualty.

       

      B.  All
        compensation awarded or paid upon a total or partial taking of the Premises
        shall belong to and be the property of Sublandlord without any participation
        by
        Subtenant; provided, however, Subtenant shall receive out of any such award,
        the
        unamortized book value of any alterations and/or improvements made by Subtenant
        to the Premises, but not more than Subtenant’s proportionate share of the sum of
        the unamortized book value of all alterations and/or improvements made by
        Sublandlord and Subtenant to the Premises; and provided further that nothing
        contained herein shall be construed to preclude Subtenant from prosecuting
        any
        claim directly against the condemning authority in such condemnation proceedings
        for loss of business, and/or depreciation to, damage to, and/or cost of removal
        of, and/or for the value of stock and/or trade fixtures, furniture and other
        personal property belonging to Subtenant; provided, however, that no such
        claim
        shall diminish or otherwise adversely affect Sublandlord's and/or Overlandlord's
        award or the award(s) of any and all ground and underlying landlord(s) and
        Mortgagee(s).

       

      15.  ASSIGNMENT.  As
        between Sublandlord and Subtenant, Subtenant may assign this Sublease or
        sublet
        the Premises in whole or in part with the consent of Sublandlord which consent
        shall not be unreasonably withheld, conditioned or
        delayed.  Notwithstanding the preceding sentence, the merger or sale
        of all or substantially all of the assets of Subtenant, or the

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      assignment
        of this Sublease to an entity controlling, controlled by or under common
        control
        with Subtenant, shall not require the consent of
        Sublandlord.  Notwithstanding the foregoing, Subtenant shall not
        assign this Sublease or sublet the Premises in whole or in part without the
        consent of Overlandlord if such consent is required under the
        Overlease.  If this Sublease is assigned, Sublandlord may, and is
        hereby empowered to, collect rent from the assignee; if the Premises or any
        part
        thereof be underlet or occupied by any person other than Subtenant, Sublandlord,
        in the event of Subtenant's default, may, and is hereby empowered to, collect
        rent from the undertenant or occupant; in either of such events, Sublandlord
        may
        apply the net amount collected by it to the rent herein reserved, and no
        such
        collection shall be deemed a waiver of the covenant herein against assignment
        and underletting, or the acceptance of the assignee, undertenant or occupant
        as
        Subtenant, or a release of Subtenant from the further performance of the
        covenants herein contained on the part of Subtenant.

       

      16.  BROKER.  Each
        party represents and warrants to the other party that it dealt with no broker
        or
        other person entitled to claim fees for such services in connection with
        the
        negotiation, execution and delivery of this Sublease.  Each party
        agrees to defend, indemnify and hold the other party harmless from and against
        any and all claims for finders' fees or brokerage or other commission which
        may
        at any time be asserted against the indemnified party founded upon a claim
        that
        the substance of the aforesaid representation of the indemnifying party is
        untrue, together with any and all losses, damages, costs and expenses (including
        reasonable attorneys' fees) relating to such claims or arising therefrom
        or
        incurred by the indemnified party in connection with the enforcement of this
        indemnification provision.

       

      17.  DEFINITION
        AND LIABILITY OF SUBLANDLORDAND
        SUBTENANT.

       

      A.  The
        term
        "Sublandlord" as used in this Sublease means only the tenant for the time
        being
        under the Overlease, so that in the event of a transfer of Sublandlord's
        interest in the Overlease, Sublandlord shall be and hereby is entirely freed
        and
        relieved of all obligations of Sublandlord hereunder and it shall be deemed
        that
        the transferee has assumed and agreed to observe and perform all obligations
        of
        Sublandlord hereunder.

       

      B.  Notwithstanding
        anything to the contrary provided in this Sublease, if Sublandlord or any
        successor in interest of Sublandlord or any parent corporation or principal
        of
        Sub-

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      landlord
        (as, for example, where Sublandlord is the nominee of another party) shall
        be an
        individual, partnership, corporation, trust, tenant in common or mortgagee,
        there shall be absolutely no personal liability on the part of any individual,
        joint venturer or member of Sublandlord or any stockholder, director, officer,
        employee, partner or trustee of Sublandlord with respect to the terms, covenants
        or conditions of this Sublease.

       

      C.  The
        term
        "Subtenant" as used in this Sublease means only the subtenant for the time
        being
        under this Sublease, so that in the event of a transfer of Subtenant's interest
        in this Sublease, Subtenant shall be and hereby is entirely freed and relieved
        of all obligations of Subtenant hereunder and it shall be deemed that the
        transferee has assumed and agreed to observe and perform all obligations
        of the
        Subtenant hereunder.

       

      D.  Notwithstanding
        anything to the contrary provided in this Sublease, if Subtenant or any
        successor in interest of Subtenant or any parent corporation or principal
        of
        Subtenant (as, for example, where Subtenant is the nominee of another party)
        shall be an individual, partnership, corporation, trust, tenant in common
        or
        mortgagee, there shall be absolutely no personal liability on the part of
        or any
        individual, joint venture or member of Subtenant or any stockholder, director,
        officer, employee, partner or trustee of Subtenant with respect to the terms,
        covenants or conditions of this Sublease.

       

      18.  REQUIREMENTS
        OF LAW.

       

      A.  During
        the term of this Sublease (as same may be extended), Subtenant shall, at
        its own
        cost and expense, promptly observe and comply with all present and future
        laws,
        ordinances, requirements, orders, directives, rules and regulations of the
        Federal, State, County, Town, Municipal and local governments and of all
        other
        governmental authorities affecting the Premises or any part thereof, including
        Environmental Laws as defined in Paragraph 21D below (collectively, “Laws”),
        and, except where Sublandlord has indemnified Purchaser with respect thereto
        under the Asset Purchase Agreement, or has indemnified Subtenant hereunder,
        Subtenant shall pay all costs, expenses, liabilities, losses, damages, fines,
        penalties, claims and demands, including reasonable counsel fees, that may
        in
        any manner arise out of or be imposed because of the failure of Subtenant
        to
        comply with the covenants of this Article 21.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      B.  Sublandlord
        acknowledges that it has been the tenant under the Overlease for over fifty
        (50)
        years.  Sublandlord represents and warrants to Subtenant that, to its
        knowledge and except as set forth in the Asset Purchase Agreement, there
        are no
        violations at the Premises of any Laws.  Sublandlord agrees to pay,
        indemnify and hold Subtenant harmless from and against any costs, expenses,
        liabilities, losses, damages, fines, penalties, claims and demands, including
        reasonable counsel fees, arising out of or imposed because of the existence
        of
        any such violations of Laws existing on or prior to the commencement date
        of
        this Sublease.

       

      C.  The
        environmental indemnification obligations of Seller and Purchaser shall be
        handled in accordance with Article IX of the Asset Purchase
        Agreement.

       

      D.  Subtenant
        shall, at Subtenant's own cost and expense except as provided in Paragraph
        21B
        above, comply with all state, federal municipal or local environmental laws
        and
        the regulations promulgated thereunder (hereinafter called the "Environmental
        Laws") including, without limitation, the Comprehensive Environmental Response
        Compensation and Liability Act, as may be amended; and the Hazardous and
        Solid
        Waste Amendments of 1984, as may be amended.  Subtenant shall, at
        Subtenant's own expense, keep and maintain the Premises free from leaks of
        spills or Hazardous Substances or Hazardous Wastes (as hereafter defined)
        and
        free from contamination of Hazardous Substances or Hazardous
        Wastes.  For purposes of this Article 21, Hazardous Substances and
        Hazardous Wastes shall mean any substance defined as a hazardous substance
        and/or hazardous waste under the Environmental Laws.

       

      19.  WAIVER.  One
        or more waivers of any covenant or condition by Sublandlord or Subtenant
        shall
        not be construed as a waiver of a subsequent breach of the same or any other
        covenant or condition, and the consent or approval by Sublandlord or Subtenant
        to or of any act by the other requiring the other’s consent or approval shall
        not be construed to waive or render unnecessary the consent or approval to
        or of
        any subsequent similar act by the other party hereunder.

       

      20.  EFFECT.  This
        Agreement shall be binding upon the parties hereto, their heirs, executors,
        legal representatives, successors and permitted assigns, and may not be altered,
        amended, terminated or modified except by written instrument executed by
        each of
        the parties hereto.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      21.  FORUM.  This
        Agreement shall be governed by the laws of the state in which the Premises
        is
        located.  Sublandlord and Subtenant each waive trial by
        jury.

       

      22.  RECORDING.  This
        Agreement shall not be recorded, but at the request of either party Sublandlord
        and Subtenant shall execute and acknowledge a memorandum of this Sublease
        which
        does not set forth the economic terms hereof but is sufficient to give third
        persons notice of this Sublease.  The memorandum may be recorded by
        either party with the Clerk of Court for the Parish of Jefferson, State of
        Louisiana.  In the event such memorandum of this Sublease is recorded,
        Sublandlord and Subtenant shall execute and acknowledge a Notice of Termination
        of Sublease which shall be deposited in escrow with the Title Company (as
        defined in the Asset Purchase Agreement) and shall be recorded by the Title
        Company on the first business day of January, 2013 or on such earlier date
        as
        Sublandlord and Subtenant shall instruct the Title Company in
        writing.

       

      23.  NO
        PRESUMPTION AGAINST DRAFTER. Sublandlord and
        Subtenant agree and acknowledge that:

       

      (a)           This
        Sublease has been freely negotiated by Sublandlord and Subtenant;
        and

       

      (b)           In
        any event of any ambiguity, controversy, dispute or disagreement over the
        interpretation, validity or enforceability of this Sublease or any of its
        covenants, terms or conditions, no inference, presumption or conclusion
        whatsoever shall be drawn against Sublandlord or Subtenant by virtue of
        Sublandlord's having drafted this Sublease or Subtenant having commented
        thereon.

       

      24.  CONFLICT
        WITH AGREEMENTS. Nothing herein shall be deemed
        to amend or modify the Asset Purchase Agreement or the Supply Agreement (“Supply
        Agreement”) by and between C&S Wholesale Grocers, Inc. and Seller dated
        __________, 2005.  In the event of a conflict between the provisions
        of this Sublease and the provisions of the Asset Purchase Agreement and/or
        the
        Supply Agreement, the terms of the Asset Purchase Agreement and/or the Supply
        Agreement shall prevail.

       

      25.  FORCE
        MAJEURE.  Except as specifically set forth in this Sublease,
        Sublandlord and Subtenant shall be excused for the period of any delay in
        the
        performance of any of its obligations under this Sublease, other than the
        payment of money, when prevented from so doing

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      by
        any
        cause or causes beyond their respective reasonable control, which shall include,
        without limitation, all labor disputes, inability to obtain any materials
        or
        services, civil commotion, restrictions, limitations or delays caused by
        governmental regulations or governmental agencies, or acts of God, each of
        which
        shall be an event of “Force Majeure”.

       

      26.  SUCCESSORS.  The
        respective rights and obligations of Sublandlord and Subtenant under this
        Sublease shall bind and shall inure to the benefit of Sublandlord and Subtenant
        and their respective legal representatives, heirs, successors and
        assigns.

       

      27.  SEVERABILITY.  If
        any provisions of this Sublease shall be held to be invalid, void or
        unenforceable, the remaining provisions of this Sublease shall in no way
        be
        affected or impaired and such remaining provisions shall continue in full
        force
        and effect.

       

      28.  ENTIRE
        AGREEMENT; AMENDMENT.  This Sublease, together with the Asset
        Purchase Agreement and the Supply Agreement, contains all the agreements,
        conditions, understandings, representations and warranties made between
        Sublandlord and Subtenant with respect to the subject matter hereof, and
        may not
        be modified orally or in any manner other than by an agreement in writing
        signed
        by both Sublandlord and Subtenant or their respective successors in
        interest.

       

      29.  ESTOPPEL
        CERTIFICATE.  At any time and from time to time and within
        twenty (20) days after written request by Sublandlord or Subtenant, Subtenant
        or
        Sublandlord, as the case may be, shall execute, acknowledge and deliver to
        the
        other a statement in writing duly executed by such party certifying that
        (a)
        this Sublease is in full force and effect, without modification or amendment
        (or, if there have been any modifications or amendments, that this Sublease
        is
        in full force and effect as modified and amended and setting forth the dates
        of
        the modifications and amendments), (b) the dates to which annual Rent has
        been
        paid, (c) to the knowledge of such party no default exists under this Sublease
        or specifying each such default and such other reasonable matters relating
        to
        the status of this Sublease and the obligations of the parties thereunder
        as the
        other may reasonably request; it being the intention and agreement of
        Sublandlord and Subtenant that any such statement may be relied upon by the
        other party or by a prospective permitted assignee or Subtenant or others,
        in
        any matter affecting the Premises.  

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      IN
        WITNESS WHEREOF, the parties have
        hereunto affixed their hands and seals the day and year first above
        written.

       

      

      
        	 	
                SUBLANDLORD:

              
	 	 
	 	
                THE
                  GREAT ATLANTIC & PACIFIC

              
	 	
                    
                  TEA COMPANY, INC.

              
	 	 
	
                WITNESS:

              	 
	 	 
	___________________________________________ 	
                By: 
                  __________________________________________

              
	 	
                Vice
                  President

              
	 	 
	 	 
	 	
                Attest: 
                  _______________________________________

              
	 	
                Assistant
                  Secretary

              
	 	 
	 	 
	 	 
	 	
                SUBTENANT:

              
	 	 
	 	
                    
                  OCEAN LOGISTICS LLC

              
	 	 
	
                WITNESS:

              	 
	 	 
	__________________________________________ 	
                By: 
                  __________________________________________

              
	 	
                President

              
	 	 
	 	 
	 	
                Attest: 
                  _______________________________________

              
	 	
                Secretary

              

      

    

     

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        “A”

      

      Legal
        Description

      

      That
        certain leasehold estate created by the Lease affecting the following described
        property:

      

      Tract
        1

      

      
        	
                 

              	
                A
                  certain piece or portion of ground situated in the Parish of Jefferson,
                  State of Louisiana, in Section 47, Township 12 South, Range 10
                  East,
                  Southeast Land District, East of the Mississippi River, being portions
                  of
                  Lots 10, 11 and 12 of the subdivision of LaBarre Plantation, as
                  shown on
                  plan of A. D’Hemecourt, dated May 9, 1836, which said piece or portion of
                  ground is more particularly delineated on survey of F.G. Stewart,
                  Civil
                  Engineer and Surveyor, dated March 24, 1966, according to which
                  said piece
                  or portion of ground measures as follows,
                  to-wit:

              

      

      

      Beginning
        at the point at which the Easterly line of Lot 10 intersects the Northerly
        line
        of Jefferson Highway, Louisiana State Highway #1; thence in a Westerly direction
        along said Northerly line of Jefferson Highway for a distance of 29.44 feet
        to
        point A, the point of beginning; thence in a Northerly direction along a
        line
        parallel to and lying 29 feet Westerly from the Easterly line of said Lot
        10 for
        a distance of 1044.42 feet to point D; thence at an interior angle of 90
        degrees
        for a distance of 373 feet in a Westerly direction to point C; thence at
        an
        interior angle of 90 degrees for a distance of 1109.48 feet along a line
        parallel to and lying 18 feet Westerly from the Westerly line of Lot 11 to
        point
        B on the Northerly line of Jefferson Highway; thence in an Easterly direction
        for a distance of 378.67 feet along the northerly line of said Jefferson
        Highway
        to point A, the point of beginning.

      

      
        	
                 

              	
                Tract
                  2 - Right of Way and Passage

              

      

      

      
        	
                 

              	
                A
                  certain piece or portion of ground, situated in Jefferson Parish,
                  State of
                  Louisiana, in Section 47, Township 12 South, Range 10 East, Southeast
                  Land
                  District of Louisiana, East of the Mississippi River, being a portion
                  of a
                  certain lot designated by the Number 10 of the Sub-division of
                  LaBarre
                  Plantation, as shown on plan of A. D’Hemecourt, dated May 9, 1836, which
                  said piece or portion of ground is for the free and unobstructed
                  use of a
                  right of way and passage, whether by motor vehicle, carriage, wagon
                  or
                  otherwise on, over and across the property more particularly described
                  as
                  follows:

              

      

      

      Beginning
        at a point of intersection of the Easterly line of aforesaid Lot 10 with
        the
        Northerly line of Jefferson Highway (State Highway No. 1); thence North 20°00’
40” East for a distance of 1039.35 feet along the Easterly line of Lot 10;
        thence North 69° 59’ 20” West for a distance of 29 feet; thence South 20° 00’
40” West a distance of 1044.42 feet to the Northerly line of Jefferson Highway;
        thence South 79° 53’ 00” East a distance of 29.44 feet to the point of
        beginning.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      The
        portion of ground hereinabove described is more fully shown on plan prepared
        by
        R. P. Rordam, Civil Engineer, dated New Orleans, Louisiana, July 22, 1949,
        revised December 18, 1949 and October 9, 1950, and on plan prepared by F.G.
        Stewart, Civil Engineer and Surveyor, dated New Orleans, Louisiana, March
        24,
        1966.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        “B”

      

      Schedule
        of Lease and Amendments

      

      
        	
                1.  

              	
                Lease
                  dated October 14, 1950, by and between Jones-Brown Realty Company,
                  Inc.
                  (“Jones-Brown”), as lessor, and Sublandlord, as lessee, a memorandum of
                  which was recorded on December 8, 1950, in the Office of the Clerk
                  and
                  Ex-Officio Recorder of Jefferson Parish, Louisiana (the “Clerk’s Office)
                  in Conveyance Book 295, folio 661.

              

      

       

      
        	
                2.  

              	
                Supplemental
                  Lease between Jones-Brown, as lessor, and Sublandlord, as lessee,
                  dated
                  February 19, 1951, a memorandum of which was recorded on March 2, 1950 in
                  the Clerk’s Office in Conveyance Book 299, folio
                  295.

              

      

       

      
        	
                3.  

              	
                Second
                  Supplemental Lease between New York Life Insurance Company, as
                  successor
                  lessor, and Sublandlord, as lessee, dated November 20, 1957, which
                  was
                  recorded in the Clerk’s Office in Conveyance Book 634, folio
                  851.

              

      

       

      
        	
                4.  

              	
                Third
                  Supplemental Lease between Boyle Trust and Investment Company,
                  as
                  successor lessor (“Boyle”), and Sublandlord, as lessee, dated January 16,
                  1967, which was recorded on January 20, 1967 in the Clerk’s Office in
                  Conveyance Book 651, folio 74.

              

      

       

      
        	
                5.  

              	
                Fourth
                  Lease Amendment and Extension Agreement between Boyle, as successor
                  lessor, and Sublandlord, as lessee, dated September 22, 1986, which
                  was
                  recorded in the Clerk’s Office, December 15, 1986 in Conveyance Book 1620,
                  folio 284.

              

      

       

      
        	
                6.  

              	
                Fifth
                  Lease Amendment between Alton Ochsner Medical Foundation, as successor
                  lessor (“Alton”), and Sublandlord, as lessee, dated December 6, 1995, a
                  memorandum of which was recorded in the Clerk’s Office on August 30, 1996
                  in Conveyance Book 2945, folio 729.

              

      

       

      
        	
                7.  

              	
                Sixth
                  Lease Amendment by and between Alton, as successor lessor, and
                  Sublandlord, as lessee, dated November 13, 1998, a memorandum of
                  which was
                  recorded on December 1, 1998 in the Clerk’s Office in Conveyance Book
                  2997, folio 64.

              

      

       

      
        	
                8.  

              	
                Seventh
                  Lease Amendment by and between Alton, as successor lessor, and
                  Sublandlord, as lessee, dated May 8, 2000, a memorandum of which
                  was
                  recorded on May 15, 2000 in the Clerk’s Office in Conveyance Book 3030,
                  folio 360.

              

      

       

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Exhibit
        F

      Leased
        Equipment

    

    
      

      [To
        list
        all leased equipment.  Subset of Exhibit B.]

      

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    
      	
              WAREHOUSE
                MAINTENANCE & SERVICE VENDORS

            	 	 	 	 	 
	 	 	
              Exhibit
                F

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
              Service

            	
              Vendor

            	
              Copy
                Recvd

            	
              Monthly
                Payment

            	
              Term
                Begin

            	
              Term
                End

            	
              Assumed

            
	
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              31-Dec-01

            	
              30-Dec-06

            	
              Y

            
	 	 	
              Copiers

            	
              Konica

            	
              X

            	
              211.88

            	
              14-Nov-03

            	
              13-Nov-08

            	
              Y

            
	 	 	
              Copiers

            	
              Konica

            	
              X

            	
              145.98

            	
              No
                Information.

            	
              No
                Information.

            	
              Y

            
	 	 	
              Copiers

            	
              Konica

            	
              X

            	
              196.21

            	
              14-Feb-03

            	
              13-Feb-08

            	
              Y

            
	 	 	
              Copiers

            	
              Konica
                (2)

            	
              X

            	
              162.12

            	
              14-Feb-03

            	
              13-Feb-08

            	
              Y

            
	 	 	 	
              Nec
                Financial Services

            	
              X

            	
              Provider
                for 5 Konicas above.

            	
              Variable
                as above.

            	
              Variable
                as above.

            	
              Y

            
	 	 	
              Storage

            	
              Crown
                Distribution LLC (2)

            	
              X

            	 	
              1-Oct-04

            	
              Until
                Terminated.

            	
              Y

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              Central
                Islip:

            	 	 	 	 	 	 	 
	 	 	
              Copiers

            	
              Xerox
                (5)

            	
              X

            	
              475.86

            	
              20-Nov-02

            	
              19-Nov-07

            	
              Y

            
	 	 	
              Copiers

            	
              Konica

            	
              X

            	
              79.81

            	
              4-Aug-04

            	
              3-Aug-09

            	
              Y

            
	 	 	
              Copiers

            	
              Konica

            	
              X

            	
              72.53

            	
              4-Aug-04

            	
              3-Aug-09

            	
              Y

            
	 	 	
              Copiers

            	
              Nec
                Financial Services Inc

            	
              X

            	
              Provider
                for 2 Konicas above.

            	
              Variable
                as above.

            	
              Variable
                as above.

            	
              Y

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              New
                Orleans:

            	 	 	 	 	 	 
	 	 	
              Copiers

            	
              Konica
                (2)

            	
              X

            	
              72.29

            	
              3-Apr-03

            	
              2-Apr-08

            	
              Y

            
	 	 	
              Copiers

            	
              Konica

            	
              X

            	
              99.88

            	
              3-Apr-03

            	
              2-Apr-08

            	
              Y

            
	 	 	
              Copiers

            	
              Konica

            	
              X

            	
              162.12

            	
              3-Apr-03

            	
              2-Apr-08

            	
              Y

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              Corporate:

            	
              *
                Note these contracts will only apply to facilities/locations C&S
                assumes as related to this transaction*

            	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              Notes:

            	 	 	 	 	 	 	 	 
	 	 	 	
              Note:  There
                are no contracts in place for waste removal. All in legal review.
                We'll
                exclude these locations in the final agreement.

            
	 	 	 	 	 	 	 	 	 
	 	 	 	
              Note:  Some
                management personnel in the 4 facilities have company-paid Blackberries,
                so C&S may get questions from those people as to whether or not they
                will get this "perk" from C&S.

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

    

     

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
 

    Exhibit
      G-1

    Special
      Warranty Deed for the Dunmore Owned Facility

    

    

    Prepared
      by and return to:

     

     
      
        

      

    

     
      
        

      

    

     
      
        

      

    

     
      
        

      

    

     

     

    Parcel
      Number:  ______________

    

    THIS
      INDENTURE made the ____ day of ___________, 2005,

    

    BETWEEN
      __________________________________________________________________, a
      _____________________ (hereinafter called the Grantor), of the one part,
      and

    ___________________________________
      (hereinafter called the Grantee), of the other
      part,

    

    WITNESSETH
      That the said Grantor for and in consideration of the sum of
      ______________________________Dollars (________________ _________), lawful
      money
      of the United States of America, unto it well and truly paid by the said
Grantee, at or before the sealing and delivery hereof, the
      receipt whereof is hereby acknowledged, has granted, bargained and sold,
      released and confirmed, and by these presents does grant, bargain and sell,
      release and confirm unto the said Grantee, successors and
      assigns, ALL THAT CERTAIN lot or piece of ground more particularly described
      on
      Exhibit "A" attached hereto and made a part hereof.

    

    BEING
      [INSERT RECITAL, UNLESS INCLUDED ON EXHIBIT "A"].

    

    UNDER
      AND SUBJECT, nevertheless, to the restrictions, covenants, easements
      and conditions listed on Exhibit "B" attached hereto and made a part
      hereof.

    

    TOGETHER
      with [add appurtenant easements].

    

    TOGETHER
      with all and singular the buildings and improvements, ways, streets,
      alleys, driveways, waters, water-courses, rights, liberties, privileges,
      hereditaments and appurtenances, whatsoever unto the hereby granted premises
      belonging, or in any wise appertaining, and the reversions and remainders,
      rents, issues, and profits thereof; and all the estate, right, title, interest,
      property, claim and demand whatsoever of it, the said Grantor, as well at law
      as
      in equity, of, in, and to the same.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    

    TO
      HAVE AND TO HOLD the said lots or pieces of ground above described,
      with the messuage or tenement thereon erected, hereditaments and premises hereby
      granted, or mentioned and intended so to be, with the appurtenances, unto the
      said Grantee, its successors and assigns, to and for the only
      proper use and behoove of the said Grantee, its successors and
      assigns forever.

    

    UNDER
      AND SUBJECT, as aforesaid.

    

    AND
      the said Grantor, for itself, its successors and assigns, does hereby
      WARRANTY SPECIALLY the property hereby conveyed.

    

    IN
      WITNESS WHEREOF, the party of the first part hereunto has caused these
      presents to be duly executed by its authorized officer, the day and year first
      above written.

    

    

    
      	
              __________________________________,
                a

            
	
              _______________________________

            
	 
	 
	
              By:_________________________________

            

    

    

    (Corporate
      Seal)

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    
      	
              STATE
                OF NEW JERSEY [__________________]

            	
              :

            
	 	
              :
                SS

            
	
              COUNTY
                OF __________________

            	
              :

            

    

    

    

    On
      this,
      the _____ day of _______________, 2005, before me, a Notary Public in and for
      the State and County aforesaid, the undersigned officer, personally appeared
      ______________________________, who acknowledged himself/herself to be the
      _______________________of  _____________________, a corporation, and
      that he/she as such officer, being authorized to do so, executed the foregoing
      instrument for the purposes therein contained by signing the name of the
      corporation by himself/herself as such officer.

    

    IN
      WITNESS WHEREOF, I have hereunto set my hand and official seal.

    

    

    
      	
              ________________________________________

            
	
              NOTARY
                PUBLIC

            
	 
	
              My
                Commission Expires:

            

    

    

    

    

    The
      address of the above named Grantee is:

    

    _____________________________

    _____________________________

    

    

    ________________________________________

    On
      behalf
      of the Grantee

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      “A”

    

    Legal
      Description

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      “B”

    

    Permitted
      Title Exceptions

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
 

    Exhibit
      G-2

    

    
      	
              ACT
                OF CASH SALE

               

              BY

               

              [Name
                of Seller]

               

              TO

               

              [Name
                of Buyer]

               

            	
              *

              *

              *

              *

              *

              *

              *

              *

              *

              *

              *

              *

            	
              UNITED
                STATES OF AMERICA

               

              STATE
                OF                                                          

               

              PARISH/COUNTY
                OF                                                          

               

              and

               

              STATE
                OF                                                          

               

              PARISH/COUNTY
                OF                                                          

               

            
	
              * *
                * * * * * * * * * * * * * * * * * * * * * * * *

            	 

    

    

    

    BE
      IT KNOWN, that on this ______ day of ______________, 2005, before me, a
      Notary Public, duly commissioned and qualified in and for the State of,
      Parish/County of _____________, and in the presence of the undersigned competent
      witnesses, personally came and appeared:

     

    [Name
      of Seller], a _______________ (the
"Seller"), which
      is
      represented herein by _______________, its _______________, who has been duly
      authorized to act herein by virtue of the resolutions, a certified copy or
      extract of which is attached hereto as Exhibit
“C”;

     

    Mailing
      Address:  470 Chestnut Ridge Road

    Woodcliff
      Lake, NJ 07677

    

     

    Taxpayer
      Identification No.:  xx-xxx______

     

    who,
      having been duly sworn, declared that it does hereby grant, bargain, sell,
      convey, transfer, assign, set over, abandon and deliver, with
      warranty of title with respect to claims by, through or under Seller but not
      otherwise but with substitution and subrogation in and to any and all rights
      and
      actions in warranty against all prior owners and vendors,
      unto:

     

    [Name
      of Buyer], a _______________ (the
"Buyer"), represented
      herein by _______________, its _______________, who has been duly authorized
      to
      act herein ;

     

    Mailing
      Address:  7 Corporate Drive

    Keene,
      New Hampshire 03431

    

     

    Taxpayer
      Identification No.:  xx-xxx___________

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

     

    here
      present accepting, and purchasing for itself and its successors and assigns,
      and
      acknowledging due delivery and possession thereof, all and singular the property
      described in Exhibit “A” attached hereto and made a part
      hereof (the "Property").

     

    To
      have
      and to hold the Property unto Buyer, and Buyer's successors and assigns
      forever.

     

    This
      sale
      is made and accepted for and in consideration of the price and sum of
      ______________________________ ($____________), cash, which Buyer has well
      and
      truly paid, in ready and current money, to Seller, which hereby acknowledges
      the
      receipt thereof and grants full acquittal and discharge therefore.

     

    Seller
      does hereby assign to Buyer all of Seller's right, title and interest in and
      to
      all governmental approvals, permits and licenses pertaining to the Property
      and
      expropriation awards and other similar incorporeal rights and interests, if
      any,
      with respect to the Property.

     

    This
      conveyance is made and accepted subject to the restrictive covenants,
      servitudes, encumbrances and other matters of public record listed on
Exhibit “B” hereto and made a part hereof (the
      "Permitted Exceptions").

     

    By
      acquiring the Property subject to the Permitted Exceptions, Buyer does not
      acknowledge the validity or enforceability of those matters for any purpose,
      including, but not limited to, interruption of prescription.

     

    The
      parties declared that all taxes up to and including taxes due and eligible
      in
      2004 are paid in full.  Taxes for the year 2005 are prorated between
      the parties based on the 2004 tax bill [unless the 2005 is then
      available].  Pursuant to La. R.S. § 9:2721(B),
      Buyer is responsible for all property taxes and assessments for and after the
      year 2005, and the address to which property tax and assessment notices are
      to
      be mailed is Buyer’s address as set forth above.

     

    The
      parties waive the production of mortgage and conveyance certificates and tax
      researches and relieve and release the undersigned notaries public from any
      liability in connection therewith.  The parties further acknowledge
      that the undersigned notaries public have not performed an examination of the
      title to the Property and express no opinion on the title to the
      Property.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

     

    THUS
      DONE AND PASSED by Seller, in _______________, ____________, on the
      ______ day of _______________, 2005, in the presence of the undersigned
      competent witnesses, who hereunto sign their names with Seller and me, Notary,
      after due reading of the whole.

     

    
      	
              WITNESSES:

               

              ______________________________________________________

              Print
                Name: _____________________________________________

               

               

               

               

              _______________________________________________________

              Print
                Name: ______________________________________________

            	
              SELLER:

               

               

              [Name
                of Seller]

               

               

              By: __________________________________________

              Print
                Name:____________________________________

              Title: _________________________________________

            
	
               

               

               

              _______________________________________

              Notary
                Public

                          
                My Commission
                Expires: ________________                   

            

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    

      

       

      THUS
        DONE AND PASSED by Buyer, in _______________, ____________, on the
        ______ day of _______________, 2005, in the presence of the undersigned
        competent witnesses, who hereunto sign their names with Buyer and me, Notary,
        after due reading of the whole.

       

      
        	
                WITNESSES:

                 

                ______________________________________________________

                Print
                  Name: _____________________________________________

                 

                 

                 

                 

                _______________________________________________________

                Print
                  Name: ______________________________________________

              	
                BUYER:

                 

                 

                [Name
                  of Buyer]

                 

                 

                By: __________________________________________

                Print
                  Name:____________________________________

                Title: _________________________________________

              
	
                 

                 

                 

                _______________________________________

                Notary
                  Public

                            
                  My Commission
                  Expires: ________________                   

              

      

      

 

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      “A”

    

    Legal
      Description

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      “B”

    

    Permitted
      Exceptions

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      “C”

    

    Certified
      Copy of Seller’s Board Resolution Authorizing Sale

    

    

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Exhibit
      G-3

    Form
      of
      Maryland Deed

    

    

    THIS
      DEED, Made
      this   day of  , 2005, by and between
      _________________________, Grantor, party of the first part and
      _______________________, Grantee, party of the second part.

    

    WITNESSETH,
      That in
      consideration of the sum of ______________________________________, the actual
      consideration paid and other good and valuable considerations, the receipt
      of
      which is hereby acknowledged, the said party of the first part does grant and
      convey to the party of the second part, its successors and/or assigns, in fee
      simple, all that parcel of land situate in __________________, State of
      Maryland, and described as follows, that is to say:

    

    SEE
      LEGAL DESCRIPTION ATTACHED
      HERETO.

    

    BEING
      the same
      property described in a Deed dated __________________ and recorded among the
      Land Records of __________________ in Liber _____, folio _____, from
      __________________________to _________________________, the grantor
      herein.

    

    BY
      the execution of
      this Deed, the party of the first part hereby certifies under the penalties
      of
      perjury that the actual consideration paid or to be paid, including the amount
      of any mortgage or deed of trust outstanding, is as hereinbefore set
      forth.

    

    GRANTOR
certifies
      that
      this conveyance is not part of a transaction in which there is a sale, lease,
      exchange or other transfer of all or substantially all of the property and
      assets of the said corporate grantor.

    

    TOGETHER
      WITH the
      buildings thereupon, and the rights, alleys, ways, waters, privileges,
      appurtenances and advantages thereto belonging, or in anywise
      appertaining.

    

    AND
the
      said party of
      the first part hereby covenants that it has not done or suffered to be done
      any
      act, matter or thing whatsoever, to encumber the property hereby conveyed;
      that
      it will warrant specially the property hereby granted; and that it will execute
      such further assurances of the same as may be requisite.

    

    TO
      HAVE AND TO HOLD
      the described parcel of land and premises to the said party  of the
      second part, its successors and/or assigns, in fee simple.

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    IN
      WITNESS WHEREOF,
      Grantor has executed this Deed under seal on the day and year herein first
      written.

     

    

      
        	
                WITNESS:

              	 	 
	 	 	 
	 	 	 
	 	 	 
	_____________________________________________	 	
                BY:__________________________________(SEAL)

              
	 	 	
                Name:

              
	 	 	
                Title:

              

      

    

    

    

    

    

    

    

    

    SEE
      SEPARATE PAGE FOR ACKNOWLEDGEMENT AND CERTIFICATION

    

    

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    

    

    

    STATE
      OF __________,

    

    CITY/COUNTY
      OF _________________, to wit:

    

    I
      HEREBY CERTIFY, That
      on this   day of  , 2005, before me, the subscriber, a
      Notary Public of the State aforesaid, personally appeared   who
      acknowledged him/herself to be the   of ________________________ a
      corporation, and that he/she as such  , being authorized so to do,
      executed the foregoing instrument for the purposes therein contained by signing
      in my presence, the name of the corporation by him/herself as such
 .

    

    IN
      WITNESS WHEREOF, I
      hereunto set my hand and official seal.

    

    

    ______________________________

    

                                                                                                   NOTARY
      PUBLIC

    

    My
      Commission Expires:______________

    

    

    

    

    THIS
      IS
      TO CERTIFY THAT THE WITHIN INSTRUMENT HAS BEEN PREPARED BY OR UNDER THE
      SUPERVISION OF THE UNDERSIGNED MARYLAND ATTORNEY.

    

    

    ______________________________

    

    

    

    RETURN
      TO:

    

    Commonwealth
      Land Title

    Insurance
      Company

    31
      Light
      Street

    Suite
      500

    Baltimore,
      Maryland  21202

    File
      No.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      A

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Exhibit
      H

    Permits
      and Licenses [To be verified by A&P]

    
 

    
      	
              A.  

            	
              Federal

            

    

     

    US
      Dept
      of Agriculture – Meat/Poultry Handlers

    US
      Dept
      of Agriculture - PACA License

    US
      Dept
      of Agriculture – Plant Import Permit / Distribution License

    US
      Drug
      Enforcement Agency – Chemical Control Registration

    [US
      Environmental Protection Agency – Ammonia and Lead Acid Batteries]

    US
      Food
& Drug Administration – Food Facility Registrations

    US
      Dept
      of Transportation  - ICC Authority

    US
      Dept
      of Transportation – USDOT Number

    US
      Dept
      of Treasury - Special Tax Stamp

    

    Louisiana

    LA
      Dept
      of Health - Permit to Operate Multiple Food Warehouse

    LA
      Dept
      of Agriculture, Division of Measures  & Weights -
      Scales

    

    Maryland

    MD
      Dept
      of Agriculture – Egg Inspection

    MD
      Dept
      of  Agriculture – Seedman’s Permit

    MD
      Dept
      of Environmental Resources – Certificate of Occupancy

    MD
      Dept
      of Health – Food Processing Plant License & Shellstock Shipper

    MD
      Dept
      of Health – Milk Distribution License

    Traders
      License

    Wastewater
      Discharge Permit

    

    New
      York

    NY
      Dept
      of Agriculture – Food Warehouse License

    NYS
      Dept
      of Env Control  - Registration for Solid Waste Management

    Suffolk
      County Dept of Health – Permit to Operate a Toxic or Haz Mat Storage
      Facility

    Town
      of
      Islip, Div of Code Enforcement - Storage of Haz-Mat/Flam Comp
      Gas-Propane

    Town
      of
      Islip, Dept of Env Control, Permit to Operate Transfer Station/Recycling
      Center

    

    Pennsylvania

    Dunmore
      Board of Health - Certificate of Occupancy

    Dunmore
      Board of Health -  License to Operate a Public Eating/Drinking
      Place

    PA
      Department of Health, Drug & Device Registration – Distributor
      (Non-Prescription)

    PA
      Department of Labor & Industry - Boiler or Pressure Vessel
      Operation

    PA
      Department of Revenue - Sales Tax License

    DE
      Division of Professional License - Pharmacy-Wholesale

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Exhibit
      J

    Lease
      Documents

    

     

    Islip
      Facility Lease

     

    

     

    Lease
      between Central Islip - Grocery, LLC, as lessor and Waldbaum, Inc., as lessee,
      dated February 13, 2001.

     

    

     

    
      	
               

            	
              Baltimore
                Facility Lease

            

    

     

    

     

    Lease
      between Baltimore-Grocery, LLC, as lessor, and the Great Atlantic & Pacific
      Tea Company, Inc., as lessee, dated February 13, 2001.

     

    

     

    
      	
               

            	
              New
                Orleans Facility Lease

            

    

     

    

    1.           Lease
      dated October 14, 1950, by and between Jones-Brown Realty Company, Inc.
      (“Jones-Brown”), as lessor, and The Great Atlantic & Pacific Tea Company,
      Inc. ("Sublandlord"), as lessee, a memorandum of which was recorded on December
      8, 1950, in the Office of the Clerk and Ex-Officio Recorder of Jefferson Parish,
      Louisiana (the “Clerk’s Office) in Conveyance Book 295, folio 661.

     

    2.           Supplemental
      Lease between Jones-Brown, as lessor, and Sublandlord, as lessee, dated February
      19, 1951, a memorandum of which was recorded on March 2, 1950 in the Clerk’s
      Office in Conveyance Book 299, folio 295.

     

    3.           Second
      Supplemental Lease between New York Life Insurance Company, as successor lessor,
      and Sublandlord, as lessee, dated November 20, 1957, which was recorded in
      the
      Clerk’s Office in Conveyance Book 634, folio 851.

     

    4.           Third
      Supplemental Lease between Boyle Trust and Investment Company, as successor
      lessor (“Boyle”), and Sublandlord, as lessee, dated January 16, 1967, which was
      recorded on January 20, 1967 in the Clerk’s Office in Conveyance Book 651, folio
      74.

     

    5.           Fourth
      Lease Amendment and Extension Agreement between Boyle, as successor lessor,
      and
      Sublandlord, as lessee, dated September 22, 1986, which was recorded in the
      Clerk’s Office on December 15, 1986 in Conveyance Book 1620, folio
      284.

     

    6.           Fifth
      Lease Amendment between Alton Ochsner Medical Foundation, as successor lessor
      (“Alton”), and Sublandlord, as lessee, dated December 6, 1995, a memorandum
      of

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    which
      was
      recorded in the Clerk’s Office on August 30, 1996 in Conveyance Book 2945, folio
      729.

     

    7.           Sixth
      Lease Amendment by and between Alton, as successor lessor, and Sublandlord,
      as
      lessee, dated November 13, 1998, a memorandum of which was recorded on December
      1, 1998 in the Clerk’s Office in Conveyance Book 2997, folio 64.

     

    8.           Seventh
      Lease Amendment by and between Alton, as successor lessor, and Sublandlord,
      as
      lessee, dated May 8, 2000, a memorandum of which was recorded on May 15, 2000
      in
      the Clerk’s Office in Conveyance Book 3030, folio 360.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
 

      
        Schedule
          1.1

         

        Excluded
          Assets

         

        Contracts
          not assigned to Purchaser.

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      
        

         

        Schedule
          4.1(e)(vi)

         

        Written
          Notice of Non-Compliance

         

        

         

        UST
          issues as set forth on Schedule 4.1(o).

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Schedule
          4.1(e)(vii)

         

        Written
          Notice of Repairs

         

        

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Schedule
          4.1(h)

         

        Necessary
          Repairs

         

        

         

        New
          Orleans Roof

         

        UST
          issues as set forth on 4.1(o)

         

        Results
          from site visits to occur week of 6/20

         

        Wall
          in
          Islip

         

        Repairs
          pursuant to Section 8.19 of this Agreement.

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      Schedule
        4.1(j)

       

      Litigation

       

      

       

      The
        Great
        Atlantic & Pacific Tea Company, Inc. v. Centimark Corporation
        (settled)

       

       

      UST
        issues as set forth on 4.1(o)

       

       

      See
        attached claims.

       

      

       

      

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

 

      
        

          Created
          by WHSEOPEN SIGMA.     ID: RSGGAP

        

          BY—ITEM
          options currently in effect are:

            PTBY:
          BY WHSE NOPR NEWPAGE SET &B01 BY COV_MAJOR_T NOPR NEWPAGE SET &B02 BY
          I

            NLIT
          NOPR NEWPAGE SET &B03 BY ID_OCCUR_DATE NOPR SET
&B04

           BY
          WHSE NOPR NEWPAGE SET &B01 BY COV_MAJOR_T NOPR NEWPAGE SET &B02 BY INLIT
          NOPR NEWPAGE SET &B03 BY ID_OCCUR_DATE NOPR SET
&B04

          DEFINE
          items in effect:

        

          DEFINE
          WHSE

          AS
          A15

          HEADING

          EXPR=
          LOC_ORACLE DECODE('0008'='NEW ORLEANS',

          '0016'='CENTRAL
          ISLIP','0020'='DUNMORE',

          '0030'='BALTIMORE',ELSE='OTHER')

        

          DEFINE
          INLIT

          AS
          A15

          HEADING

          EXPR=
          IF LGL_FLAG = 'Y' THEN 'IN LITIGATION'

          ELSE
          'NOT LITIGATED'

        

          DEFINE
          LOC1T

          AS
          A15

          HEADING

          EXPR=
          LOC_LVL1 CATB '—' CAT LOC_LVL1_T

        

        

          Report
          is per claimant.

        

          Generated
          06/08/2005 on data valued as of 06/07/2005 using SIGMA version
          04.20.

        

          No
          report footing in effect at this time.

        

          Display
          formats currently in effect are:

            ....Format
          for dollars is: AS 99,999,999PR

            .....Format
          for counts is: AS 999,999

            ...Format
          for percents is: AS 999.999

            .....Format
          for ratios is: AS 9999.9999

        

          Report
          options currently in effect are:

            ...........Per
          claim/occurrence is: Per claim (CLAIMID, TOTVAL, et al)

            .....Base
          date of annual period is: \

            ..Annual
          period inception month is:  > No time item

            ...............Reporting
          period is: /

            ..........Annual
          inflation rate is: 00.00%

            ...............Inflated
          to date is: 06/08/2005

            ................Evaluation
          date is: 06/07/2005

        

          Selection
          criteria currently in effect:

          LOC_ORACLE
          AMONG('0008','0016','0020','0030')

          STATUS
          = 'O'

          DELETE_FLAG
          NE 'Y'

        

          Report
          title currently in effect is:

          THE
          GREAT ATLANTIC & PACIFIC TEA COMPANY fold OPEN LOSSES AS OF JUNE 7,
          2

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

                                                                                                                                  PAGE   1

                                              THE
          GREAT ATLANTIC & PACIFIC TEA COMPANY

                                                  OPEN
          LOSSES AS OF JUNE 7, 2005

        

                                                             BALTIMORE

                                                      WORKERS'
          COMPENSATION

                                                           IN
          LITIGATION

        

        

        
          	
                  Claim

                  Identification

                	 	
                  Date

                  Claim

                  Occurred

                	
                  Adjuster

                  Notified

                	
                  O/F

                	
                  Date

                  Claim

                  Closed

                	 	
                  Cov

                	 	
                  Location

                	 	
                  Total
                    Claim

                  Paid
                    to Date $

                	 	 	
                  Total
                    Claim

                  Outstanding
                    $

                	 	 	
                  Total
                    Claim

                  Total
                    Incurred $

                	 
	
                   S861111081644001

                	 	
                  06/17/93

                	
                  06/24/93

                	
                  O

                	
                  10/31/01

                	 	 	
                  127

                	 	
                  22181—BALTIMORE

                	 	 	
                  101,100

                	 	 	 	
                  44,597

                	 	 	 	
                  145,697

                	 
	
                   S8611DQX19001001

                	 	
                  05/07/00

                	
                  05/09/00

                	
                  O

                	
                  08/17/01

                	 	 	
                  127

                	 	
                  22181—BALTIMORE

                	 	 	
                  11,830

                	 	 	 	
                  7,737

                	 	 	 	
                  19,567

                	 
	
                   S8611DQX27016001

                	 	
                  01/17/02

                	
                  02/28/02

                	
                  O

                	
                  11/24/04

                	 	 	
                  624

                	 	
                  22181—BALTIMORE

                	 	 	
                  33,218

                	 	 	 	
                  3,712

                	 	 	 	
                  36,930

                	 

        

        

        

        

        

        

        

        

                         Generated
          06/08/2005 on data valued as of 06/07/2005 using SIGMA version
          04.20.

         

        Created
          by WHSEOPEN
          SIGMA.   

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

                                                                                                                                                                                                 PAGE   2

                                              THE
          GREAT ATLANTIC & PACIFIC TEA COMPANY

                                                  OPEN
          LOSSES AS OF JUNE 7, 2005

        

                                                             BALTIMORE

                                                      WORKERS'
          COMPENSATION

                                                           NOT
          LITIGATED

        

        

        
          	
                  Claim
                    Identification

                	
                  Date
                    Claim Occurred

                	
                  Adjuster
                    Notified

                	
                  O/F

                	
                  Date
                    Claim Closed

                	 	
                  Cov

                	 	
                  Location

                	 	
                  Total
                    Claim Paid to Date $

                	 	 	
                  Total
                    Claim Outstanding $

                	 	 	
                  Total
                    Claim Total Incurred $

                	 
	
                   S8611DQX29703001

                	
                   09/23/02

                	
                   09/24/02

                	
                  O

                	
                  10/31/03

                	 	 	
                  127

                	 	
                  22181—BALTIMORE

                	 	 	
                  82,049

                	 	 	 	
                  20,701

                	 	 	 	
                  102,750

                	 
	
                   S8611DQX30582001

                	
                   11/19/02

                	
                   11/19/02

                	
                  O

                	
                  08/31/04

                	 	 	
                  127

                	 	
                  22181—BALTIMORE

                	 	 	
                  20,935

                	 	 	 	
                  12,315

                	 	 	 	
                  33,250

                	 
	
                   S8611DQX30897001

                	
                   12/14/02

                	
                   12/16/02

                	
                  O

                	
                   N/A

                	 	 	
                  127

                	 	
                  22181—BALTIMORE

                	 	 	
                  89,248

                	 	 	 	
                  4,852

                	 	 	 	
                  94,100

                	 
	
                   S8611DQX32660001

                	
                   04/24/03

                	
                   05/02/03

                	
                  O

                	
                  01/08/05

                	 	 	
                  127

                	 	
                  22181—BALTIMORE

                	 	 	
                  37,997

                	 	 	 	
                  10,703

                	 	 	 	
                  48,700

                	 
	
                   S8611DQX32686001

                	
                   05/05/03

                	
                   05/05/03

                	
                  O

                	
                  03/09/04

                	 	 	
                  127

                	 	
                  22181—BALTIMORE

                	 	 	
                  48,055

                	 	 	 	
                  6,256

                	 	 	 	
                  54,311

                	 
	
                   S8611DQX33323001

                	
                   06/26/03

                	
                   06/27/03

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  22181—BALTIMORE

                	 	 	
                  79,643

                	 	 	 	
                  48,023

                	 	 	 	
                  127,666

                	 
	
                   S8611DQX33710001

                	
                   08/04/03

                	
                   08/04/03

                	
                  O

                	
                  08/31/04

                	 	 	
                  127

                	 	
                  22181—BALTIMORE

                	 	 	
                  14,027

                	 	 	 	
                  4,903

                	 	 	 	
                  18,930

                	 
	
                   S8611DQX35204001

                	
                   12/21/03

                	
                   12/24/03

                	
                  O

                	
                  02/20/04

                	 	 	
                  127

                	 	
                  22381—BALTIMORE

                	 	 	
                  6,140

                	 	 	 	
                  11,436

                	 	 	 	
                  17,576

                	 
	
                   S8611DQX35658001

                	
                   01/29/04

                	
                   02/20/04

                	
                  O

                	
                  07/30/04

                	 	 	
                  127

                	 	
                  22181—BALTIMORE

                	 	 	
                  6,942

                	 	 	 	
                  13,698

                	 	 	 	
                  20,640

                	 
	
                   S8611DQX35796001

                	
                  03/04/04

                	
                   03/08/04

                	
                  O

                	
                  11/10/04

                	 	 	
                  127

                	 	
                  22181—BALTIMORE

                	 	 	
                  9,368

                	 	 	 	
                  5,073

                	 	 	 	
                  14,441

                	 
	
                   S8611DQX36437001

                	
                   05/26/04

                	
                   05/27/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  22181—BALTIMORE

                	 	 	
                  9,508

                	 	 	 	
                  2,642

                	 	 	 	
                  12,150

                	 
	
                   S8611DQX36440001

                	
                   05/27/04

                	
                   05/28/04

                	
                  O

                	
                  10/29/04

                	 	 	
                  127

                	 	
                  22181—BALTIMORE

                	 	 	
                  7,024

                	 	 	 	
                  26,141

                	 	 	 	
                  33,165

                	 
	
                   S8611DQX36469001

                	
                   05/28/04

                	
                   06/02/04

                	
                  O

                	
                  12/10/04

                	 	 	
                  127

                	 	
                  22481—BALTIMORE

                	 	 	
                  575

                	 	 	 	
                  20,204

                	 	 	 	
                  20,779

                	 
	
                   S8611DQX36503001

                	
                   06/03/04

                	
                   06/04/04

                	
                  O

                	
                  07/29/04

                	 	 	
                  127

                	 	
                  22381—BALTIMORE

                	 	 	
                  3,379

                	 	 	 	
                  7,989

                	 	 	 	
                  11,368

                	 
	
                   S8611DQX37077001

                	
                   09/08/04

                	
                   09/15/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  22181—BALTIMORE

                	 	 	
                  32,807

                	 	 	 	
                  15,833

                	 	 	 	
                  48,640

                	 
	
                   S8611DQX37154001

                	
                   09/28/04

                	
                   09/29/04

                	
                  O

                	
                  01/28/05

                	 	 	
                  127

                	 	
                  22181—BALTIMORE

                	 	 	
                  3,147

                	 	 	 	
                  9,492

                	 	 	 	
                  12,639

                	 
	
                   S8611DQX37618001

                	
                   01/04/05

                	
                   01/05/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  22181—BALTIMORE

                	 	 	
                  9,653

                	 	 	 	
                  27,365

                	 	 	 	
                  37,018

                	 
	
                   S8611DQX37744001

                	
                   01/31/05

                	
                   01/31/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  22181—BALTIMORE

                	 	 	
                  229

                	 	 	 	
                  14,434

                	 	 	 	
                  14,663

                	 
	
                   S8611DQX37896001

                	
                   02/27/05

                	
                   02/28/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  22381—BALTIMORE

                	 	 	
                  5,942

                	 	 	 	
                  13,318

                	 	 	 	
                  19,260

                	 
	
                   S8611DQX37930001

                	
                   03/03/05

                	
                   03/04/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  22381—BALTIMORE

                	 	 	
                  500

                	 	 	 	
                  4,500

                	 	 	 	
                  5,000

                	 
	
                   S8611DQX38071001

                	
                   03/29/05

                	
                   03/30/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  22181—BALTIMORE

                	 	 	
                  1,769

                	 	 	 	
                  10,591

                	 	 	 	
                  12,360

                	 
	
                   S8611DQX38181001

                	
                   04/02/05

                	
                   04/06/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  22181—BALTIMORE

                	 	 	
                  4,809

                	 	 	 	
                  15,782

                	 	 	 	
                  20,591

                	 
	
                   S8611DQX38182001

                	
                   04/06/05

                	
                   04/06/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  22181—BALTIMORE

                	 	 	
                  1,956

                	 	 	 	
                  344

                	 	 	 	
                  2,300

                	 
	
                   S8611DQX38424001

                	
                   04/28/05

                	
                   04/28/05

                	
                  O

                	
                  N/A

                	 	 	127	 	
                  22181—BALTIMORE

                	 	 	
                  428

                	 	 	 	
                  1,872

                	 	 	 	
                  2,300

                	 
	
                   S8611DQX38438001

                	
                   04/30/05

                	
                   04/30/05

                	
                  O

                	
                  N/A

                	 	 	127	 	
                  22181—BALTIMORE

                	 	 	
                  635

                	 	 	 	
                  1,665

                	 	 	 	
                  2,300

                	 
	
                   S8611DQX38626001

                	
                   05/05/05

                	
                   06/01/05

                	
                  O

                	
                  N/A

                	 	 	127	 	
                  22381—BALTIMORE

                	 	 	
                  0

                	 	 	 	
                  4,300

                	 	 	 	
                  4,300

                	 
	
                   S8611DQX38466001

                	
                   05/06/05

                	
                   05/06/05

                	
                  O

                	
                  N/A

                	 	 	127	 	
                  22381—BALTIMORE

                	 	 	
                  19

                	 	 	 	
                  12,238

                	 	 	 	
                  12,257

                	 
	
                   S8611DQX38507001

                	
                   05/06/05

                	
                   05/10/05

                	
                  O

                	
                  N/A

                	 	 	127	 	
                  22381—BALTIMORE

                	 	 	
                  16

                	 	 	 	
                  2,284

                	 	 	 	
                  2,300

                	 
	
                   S8611DQX38523001

                	
                   05/11/05

                	
                   05/13/05

                	
                  O

                	
                  N/A

                	 	 	127	 	
                  22181—BALTIMORE

                	 	 	
                  13

                	 	 	 	
                  4,787

                	 	 	 	
                  4,800

                	 
	
                   S8611DQX38524001

                	
                   05/11/05

                	
                   05/13/05

                	
                  O

                	
                  N/A

                	 	 	127	 	
                  22181—BALTIMORE

                	 	 	
                  84

                	 	 	 	
                  6,286

                	 	 	 	
                  6,370

                	 
	
                   S8611DQX38614001

                	
                   05/14/05

                	
                   05/31/05

                	
                  O

                	
                  N/A

                	 	 	127	 	
                  22181—BALTIMORE

                	 	 	
                  0

                	 	 	 	
                  6,800

                	 	 	 	
                  6,800

                	 
	
                   S8611DQX38564001

                	
                  05/20/05

                	
                   05/23/05

                	
                  O

                	
                  N/A

                	 	 	127	 	
                  22281—BALTIMORE

                	 	 	
                  0

                	 	 	 	
                  4,800

                	 	 	 	
                  4,800

                	 
	
                   S8611DQX38587001

                	
                   05/22/05

                	
                   05/25/05

                	
                  O

                	
                  N/A

                	 	 	127	 	
                  22381—BALTIMORE

                	 	 	
                  0

                	 	 	 	
                  4,800

                	 	 	 	
                  4,800

                	 
	
                   S8611DQX38573001

                	
                   05/24/05

                	
                   05/24/05

                	
                  O

                	
                  N/A

                	 	 	126	 	
                  22181—BALTIMORE

                	 	 	
                  0

                	 	 	 	
                  2,300

                	 	 	 	
                  2,300

                	 

        

        

                         Generated
          06/08/2005 on data valued as of 06/07/2005 using SIGMA version
          04.20.

        

                                                                          Created
          by WHSEOPEN SIGMA. 

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

                                                                                                                                 PAGE   3

                                              THE
          GREAT ATLANTIC & PACIFIC TEA COMPANY

                                                  OPEN
          LOSSES AS OF JUNE 7, 2005

        

                                                           CENTRAL
          ISLIP

                                                        GENERAL
          LIABILITY

                                                           IN
          LITIGATION

        

        

        
          	
                  Claim
                    Identification

                	
                  Date
                    Claim Occurred

                	
                  Adjuster
                    Notified

                	
                  O/F

                	
                  Date
                    Claim Closed

                	 	
                  Cov

                	 	
                  Location

                	 	
                  Total
                    Claim Paid to Date $

                	 	 	
                  Total
                    Claim Outstanding $

                	 	 	
                  Total
                    Claim Total Incurred $

                	 
	
                  S861177649159001

                	
                   08/29/02

                	
                  01/28/03

                	
                  O

                	
                  N/A

                	 	 	
                  179

                	 	
                  77281—MEAT
                    WHSE

                	 	 	
                  2,931

                	 	 	 	
                  24,569

                	 	 	 	
                  27,500

                	 

        

        

        

        
 

        

        

        

        

        

                         Generated
          06/08/2005 on data valued as of 06/07/2005 using SIGMA version
          04.20.

        

                                                                          Created
          by WHSEOPEN SIGMA.     

         

                                                                                                                             

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        PAGE   4

         

                                              THE
          GREAT ATLANTIC & PACIFIC TEA COMPANY

                                                  OPEN
          LOSSES AS OF JUNE 7, 2005

        

                                                           CENTRAL
          ISLIP

                                                        GENERAL
          LIABILITY

                                                           NOT
          LITIGATED

        

        

        
          	
                  Claim
                    Identification

                	
                  Date
                    Claim Occurred

                	
                  Adjuster
                    Notified

                	
                  O/F

                	
                  Date
                    Claim Closed

                	 	
                  Cov

                	 	
                  Location

                	 	
                  Total
                    Claim Paid to Date $

                	 	 	
                  Total
                    Claim Outstanding $

                	 	 	
                  Total
                    Claim Total Incurred $

                	 
	
                  S861177650675001

                	
                  06/25/02

                	
                  05/09/03

                	
                   O

                	
                     N/A

                	 	 	
                  179

                	 	
                   77281—MEAT
                    WHSE

                	 	 	
                  1,263

                	 	 	 	
                  22,738

                	 	 	 	
                  24,000

                	 
	
                  S861177660047001

                	
                  06/02/04

                	
                  07/13/04

                	
                   O

                	
                     N/A

                	 	 	
                  179

                	 	
                   77181—WHSE/DIST

                	 	 	
                  6,436

                	 	 	 	
                  23,564

                	 	 	 	
                  30,000

                	 
	
                  S861177663494001

                	
                  06/21/04

                	
                  11/10/04

                	
                   O

                	
                     N/A

                	 	 	
                  179

                	 	
                   77181—WHSE/DIST

                	 	 	
                  290

                	 	 	 	
                  1,710

                	 	 	 	
                  2,000

                	 

        

        

        

        

        

        

        

                         Generated
          06/08/2005 on data valued as of 06/07/2005 using SIGMA version
          04.20.

        

                                                                          Created
          by WHSEOPEN
          SIGMA.                                                                                                                         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         PAGE   5

                                              THE
          GREAT ATLANTIC & PACIFIC TEA COMPANY

                                                  OPEN
          LOSSES AS OF JUNE 7, 2005

        

                                                           CENTRAL
          ISLIP

                                                      WORKERS'
          COMPENSATION

                                                           IN
          LITIGATION

        

        

        
          	
                  Claim
                    Identification

                	
                  Date
                    Claim Occurred

                	
                  Adjuster
                    Notified

                	
                  O/F

                	
                  Date
                    Claim Closed

                	 	
                  Cov

                	 	
                  Location

                	 	
                  Total
                    Claim Paid to Date $

                	 	 	
                  Total
                    Claim Outstanding $

                	 	 	
                  Total
                    Claim Total Incurred $

                	 
	
                  S439494302357001

                	
                  02/12/90

                	
                  07/12/91

                	
                   O

                	
                     N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  91,694

                	 	 	 	
                  6,129

                	 	 	 	
                  97,824

                	 
	
                  S439494302303001

                	
                  04/10/90

                	
                   07/12/91

                	
                   O

                	
                     N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  31,779

                	 	 	 	
                  68,391

                	 	 	 	
                  100,170

                	 
	
                  S439494302360001

                	
                  05/28/91

                	
                  07/12/91

                	
                   O

                	
                     N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  43,186

                	 	 	 	
                  7,220

                	 	 	 	
                  50,407

                	 

        

         

        

        

        

        

        

        

        

        

                         Generated
          06/08/2005 on data valued as of 06/07/2005 using SIGMA version
          04.20.

        

                                                                          Created
          by WHSEOPEN
          SIGMA.                                                                                                                          

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        PAGE   6

                                              THE
          GREAT ATLANTIC & PACIFIC TEA COMPANY

                                                  OPEN
          LOSSES AS OF JUNE 7, 2005

        

                                                           CENTRAL
          ISLIP

                                                      WORKERS'
          COMPENSATION

                                                           NOT
          LITIGATED

         

         

        
          	
                  Claim
                    Identification

                	
                  Date
                    Claim Occurred

                	
                  Adjuster
                    Notified

                	
                  O/F

                	
                  Date
                    Claim Closed

                	 	
                  Cov

                	 	
                  Location

                	 	
                  Total
                    Claim Paid to Date $

                	 	 	
                  Total
                    Claim Outstanding $

                	 	 	
                  Total
                    Claim Total Incurred $

                	 
	
                   S439494326748001

                	
                  08/25/89

                	
                  03/30/93

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  6,917

                	 	 	 	
                  3,051

                	 	 	 	
                  9,968

                	 
	
                   S439494302397001

                	
                  11/13/89

                	
                  07/12/91

                	
                  O

                	
                     06/16/93

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  2,790

                	 	 	 	
                  18,587

                	 	 	 	
                  21,377

                	 
	
                   S439494302349001

                	
                  09/13/90

                	
                  07/12/91

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  45,890

                	 	 	 	
                  21,906

                	 	 	 	
                  67,796

                	 
	
                   S861194305552001

                	
                  08/29/91

                	
                  09/10/91

                	
                  O

                	
                     05/04/94

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  52,918

                	 	 	 	
                  11,195

                	 	 	 	
                  64,113

                	 
	
                   S861194308923001

                	
                  11/13/91

                	
                  11/20/91

                	
                  O

                	
                     09/10/94

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  10,917

                	 	 	 	
                  2,763

                	 	 	 	
                  13,680

                	 
	
                   S861194311074001

                	
                  01/10/92

                	
                  01/21/92

                	
                  O

                	
                     07/10/93

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  28,606

                	 	 	 	
                  38,869

                	 	 	 	
                  67,475

                	 
	
                   S861194316650001

                	
                   06/01/92

                	
                  06/09/92

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  498,923

                	 	 	 	
                  14,414

                	 	 	 	
                  513,337

                	 
	
                   S861194318887001

                	
                  07/27/92

                	
                  07/31/92

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  270,962

                	 	 	 	
                  13,003

                	 	 	 	
                  283,965

                	 
	
                   S861194320071001

                	
                  08/26/92

                	
                   09/03/92

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  78,375

                	 	 	 	
                  10,470

                	 	 	 	
                  88,845

                	 
	
                   S861194320978001

                	
                  09/25/92

                	
                   10/01/92

                	
                  O

                	
                     04/21/93

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  1,938

                	 	 	 	
                  14,107

                	 	 	 	
                  16,045

                	 
	
                   S861194325099001

                	
                  01/25/93

                	
                  02/04/93

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  301,533

                	 	 	 	
                  14,167

                	 	 	 	
                  315,700

                	 
	
                   S861194327827001

                	
                  04/28/93

                	
                  05/05/93

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  116,370

                	 	 	 	
                  39,130

                	 	 	 	
                  155,500

                	 
	
                   S861194332614001

                	
                  06/15/93

                	
                   11/02/93

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  48,674

                	 	 	 	
                  6,493

                	 	 	 	
                  55,166

                	 
	
                   S861194332578001

                	
                  10/21/93

                	
                  11/01/93

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  241,231

                	 	 	 	
                  43,894 

                	 	 	 	285,125 	 
	
                   S861194333007001

                	
                  11/12/93

                	
                   11/16/93

                	
                  O

                	
                     01/25/94

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  988

                	 	 	 	
                  13,135

                	 	 	 	
                  14,123

                	 
	
                   S861177602071001

                	
                  06/14/95

                	
                   06/14/95

                	
                  O

                	
                     03/09/96

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  107,513

                	 	 	 	
                  8,747

                	 	 	 	
                  116,260

                	 
	
                   S861177603543001

                	
                  09/16/95

                	
                   09/18/95

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  187,890

                	 	 	 	
                  89,810

                	 	 	 	
                  277,700

                	 
	
                   S861177604152001

                	
                  10/31/95

                	
                  11/01/95

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  148,640

                	 	 	 	
                  56,167

                	 	 	 	
                  204,807

                	 
	
                   S861177609457001

                	
                  04/15/96

                	
                  09/23/96

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  153,337

                	 	 	 	
                  22,110

                	 	 	 	
                  175,447

                	 
	
                   S861177612419001

                	
                  04/14/97

                	
                  04/17/97

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  296,421

                	 	 	 	
                  65,236

                	 	 	 	
                  361,658

                	 
	
                   S861177622868001

                	
                  12/04/98

                	
                  01/06/99

                	
                  O

                	
                     10/18/01

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  36,965

                	 	 	 	
                  4,395

                	 	 	 	
                  41,360

                	 
	
                   S861177623228001

                	
                   01/22/99

                	
                  01/29/99

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  119,027

                	 	 	 	
                  43,302

                	 	 	 	
                  162,329

                	 
	
                   S861177624648001

                	
                   04/07/99

                	
                  04/07/99

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  216,422

                	 	 	 	
                  68,508

                	 	 	 	
                  284,930

                	 
	
                   S861177625578001

                	
                  05/19/99

                	
                  06/01/99

                	
                  O

                	
                     10/09/01

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  146,579

                	 	 	 	
                  22,646

                	 	 	 	
                  169,225

                	 
	
                   S861177626924001

                	
                  08/05/99

                	
                  08/05/99

                	
                  O

                	
                     07/31/01

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  152,228

                	 	 	 	
                  96,322

                	 	 	 	
                  248,550

                	 
	
                   S861177629595001

                	
                   01/07/00

                	
                  01/10/00

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  128,833

                	 	 	 	
                  18,707

                	 	 	 	
                  147,540

                	 
	
                   S861177629951001

                	
                  02/04/00

                	
                  02/07/00

                	
                  O

                	
                     10/05/01

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  47,998

                	 	 	 	
                  2,001

                	 	 	 	
                  49,999

                	 
	
                   S861177630764001

                	
                   03/31/00

                	
                   04/04/00

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  89,508

                	 	 	 	
                  73,892

                	 	 	 	
                  163,400

                	 
	
                   S861177633965001

                	
                  09/29/00

                	
                  10/02/00

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  115,656

                	 	 	 	
                  34,363

                	 	 	 	
                  150,018

                	 
	
                   S861177636182001

                	
                  03/05/01

                	
                  03/06/01

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  22,675

                	 	 	 	
                  15,960

                	 	 	 	
                  38,635

                	 
	
                   S861177637647001

                	
                   06/07/01

                	
                   06/08/01

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  73,970

                	 	 	 	
                  4,334

                	 	 	 	
                  78,304

                	 
	
                   S861177639081001

                	
                   08/06/01

                	
                   08/08/01

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  11,853

                	 	 	 	
                  1,257

                	 	 	 	
                  13,110

                	 
	
                   S861177640249001

                	
                  10/04/01

                	
                  10/05/01

                	
                  O

                	
                     11/30/01

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  665

                	 	 	 	
                  65

                	 	 	 	
                  730

                	 
	
                   S861177640335001

                	
                  10/10/01

                	
                  10/10/01

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  42,180

                	 	 	 	
                  9,762

                	 	 	 	
                  51,942

                	 
	
                   S861177641658001

                	
                   01/02/02

                	
                   01/07/02

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  54,922

                	 	 	 	
                  9,690

                	 	 	 	
                  64,612

                	 
	
                   S861177642056001

                	
                  01/29/02

                	
                  01/31/02

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  7,412

                	 	 	 	
                  7,663

                	 	 	 	
                  15,075

                	 
	
                   S861177643221001

                	
                  04/08/02

                	
                  04/09/02

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  36,750

                	 	 	 	
                  4,241

                	 	 	 	
                  40,991

                	 
	
                   S861177643703001

                	
                  05/06/02

                	
                  05/06/02

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  8,541

                	 	 	 	
                  2,935

                	 	 	 	
                  11,476

                	 
	
                   S861177645229001

                	
                   07/16/02

                	
                   07/16/02

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  25,170

                	 	 	 	
                  3,990

                	 	 	 	
                  29,160

                	 
	
                   S861177646406001

                	
                  08/29/02

                	
                  08/30/02

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77281—MEAT
                    WHSE

                	 	 	
                  95,660

                	 	 	 	
                  12,783

                	 	 	 	
                  108,443

                	 
	
                   S861177648148001

                	
                  11/25/02

                	
                  11/26/02

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  163,060

                	 	 	 	
                  31,581

                	 	 	 	
                  194,641

                	 
	
                   S861177648149001

                	
                  11/26/02

                	
                  11/26/02

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   77181—WHSE/DIST

                	 	 	
                  51,336

                	 	 	 	
                  1,454

                	 	 	 	
                  52,790

                	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

        

        

        Generated
          06/08/2005 on data valued as of 06/07/2005 using SIGMA verson
          04.20.

        

                                                                           Created
          by WHSEOPEN
          SIGMA.                                                                                                                          

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        PAGE   7

                                              THE
          GREAT ATLANTIC & PACIFIC TEA COMPANY

                                                  OPEN
          LOSSES AS OF JUNE 7, 2005

        

                                                           CENTRAL
          ISLIP

                                                      WORKERS'
          COMPENSATION

                                                           NOT
          LITIGATED

        

        

        
          	
                  Claim
                    Identification

                	
                  Date
                    Claim Occurred

                	
                  Adjuster
                    Notified

                	
                  O/F

                	
                  Date
                    Claim Closed

                	 	
                  Cov

                	 	
                  Location

                	 	
                  Total
                    Claim Paid to Date $

                	 	 	
                  Total
                    Claim Outstanding $

                	 	 	
                  Total
                    Claim Total Incurred $

                	 
	
                   S861177649852001

                	
                  12/31/02

                	
                  03/13/03

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  2,252

                	 	 	 	
                  398

                	 	 	 	
                  2,650

                	 
	
                   S861177650825001

                	
                  01/30/03

                	
                  05/19/03

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  3,498

                	 	 	 	
                  17,579

                	 	 	 	
                  21,077

                	 
	
                   S861177650111001

                	
                  03/31/03

                	
                  04/01/03

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  30,334

                	 	 	 	
                  8,716

                	 	 	 	
                  39,050

                	 
	
                   S861177650114001

                	
                  04/01/03

                	
                  04/01/03

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  12,989

                	 	 	 	
                  10,032

                	 	 	 	
                  23,021

                	 
	
                   S861177650405001

                	
                  04/18/03

                	
                  04/21/03

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  13,840

                	 	 	 	
                  4,111

                	 	 	 	
                  17,951

                	 
	
                   S861177650558001

                	
                  04/30/03

                	
                  04/30/03

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  577

                	 	 	 	
                  1,563

                	 	 	 	
                  2,140

                	 
	
                   S861177650599001

                	
                  05/02/03

                	
                  05/02/03

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  21,923

                	 	 	 	
                  952

                	 	 	 	
                  22,875

                	 
	
                   S861177650704001

                	
                  05/08/03

                	
                  05/12/03

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  22,074

                	 	 	 	
                  6,576

                	 	 	 	
                  28,650

                	 
	
                   S861177651550001

                	
                  06/25/03

                	
                  06/30/03

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  6,710

                	 	 	 	
                  3,223

                	 	 	 	
                  9,933

                	 
	
                   S861177653034001

                	
                  06/25/03

                	
                  09/02/03

                	
                  O

                	
                  N/A

                	 	 	 	 	
                  12777181—WHSE/DIST

                	 	 	
                  2,619

                	 	 	 	
                  331

                	 	 	 	
                  2,950

                	 
	
                   S861177654174001

                	
                  07/04/03

                	
                  10/27/03

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  9,272

                	 	 	 	
                  3,228

                	 	 	 	
                  12,500

                	 
	
                   S861177651955001

                	
                  07/15/03

                	
                  07/17/03

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  6,471

                	 	 	 	
                  12,029

                	 	 	 	
                  18,500

                	 
	
                   S861177652117001

                	
                  07/21/03

                	
                   07/22/03

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  5,915

                	 	 	 	
                  1,047

                	 	 	 	
                  6,962

                	 
	
                   S861177653032001

                	
                  09/02/03

                	
                  09/02/03

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  1,503

                	 	 	 	
                  1,087

                	 	 	 	
                  2,590

                	 
	
                   S861177653076001

                	
                  09/02/03

                	
                  09/03/03

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  482

                	 	 	 	
                  618

                	 	 	 	
                  1,100

                	 
	
                   S861177653496001

                	
                  09/18/03

                	
                  09/19/03

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  4,286

                	 	 	 	
                  431

                	 	 	 	
                  4,717

                	 
	
                   S861177653570001

                	
                  09/19/03

                	
                  09/23/03

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  22,919

                	 	 	 	
                  13,820

                	 	 	 	
                  36,739

                	 
	
                   S861177653608001

                	
                  09/23/03

                	
                  09/24/03

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  21,522

                	 	 	 	
                  6,458

                	 	 	 	
                  27,980

                	 
	
                   S861177654044001

                	
                  10/20/03

                	
                  10/20/03

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  600

                	 	 	 	
                  600

                	 
	
                   S861177654278001

                	
                  10/27/03

                	
                  11/03/03

                	
                  O

                	
                  12/17/03

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  8,897

                	 	 	 	
                  2,381

                	 	 	 	
                  11,278

                	 
	
                   S861177655151001

                	
                  12/08/03

                	
                  12/08/03

                	
                   O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  3,246

                	 	 	 	
                  4,304

                	 	 	 	
                  7,550

                	 
	
                   S861177655265001

                	
                  12/15/03

                	
                  12/15/03

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  6,058

                	 	 	 	
                  1,109

                	 	 	 	
                  7,167

                	 
	
                   S861177655847001

                	
                  01/14/04

                	
                  01/14/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  9,248

                	 	 	 	
                  1,632

                	 	 	 	
                  10,880

                	 
	
                   S861177655848001

                	
                  01/14/04

                	
                  01/14/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  30,746

                	 	 	 	
                  3,857

                	 	 	 	
                  34,603

                	 
	
                   S861177656141001

                	
                  01/26/04

                	
                  01/26/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  5,194

                	 	 	 	
                  1,006

                	 	 	 	
                  6,200

                	 
	
                   S861177656372001

                	
                  02/05/04

                	
                  02/06/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  25,552

                	 	 	 	
                  11,987

                	 	 	 	
                  37,539

                	 
	
                   S861177656799001

                	
                  03/01/04

                	
                  03/01/04

                	
                   O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  22,867

                	 	 	 	
                  5,562

                	 	 	 	
                  28,429

                	 
	
                   S861177657414001

                	
                  03/31/04

                	
                  04/01/04

                	
                   O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  629

                	 	 	 	
                  1,221

                	 	 	 	
                  1,850

                	 
	
                   S861177658299001

                	
                  04/15/04

                	
                  05/11/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  4,607

                	 	 	 	
                  543

                	 	 	 	
                  5,150

                	 
	
                   S861177657888001

                	
                  04/16/04

                	
                  04/23/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  5,017

                	 	 	 	
                  3,813

                	 	 	 	
                  8,830

                	 
	
                   S861177658373001

                	
                  05/14/04

                	
                  05/14/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77281—MEAT
                    WHSE

                	 	 	
                  1,276

                	 	 	 	
                  1,374

                	 	 	 	
                  2,650

                	 
	
                   S861177659502001

                	
                  06/15/04

                	
                  06/25/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77281—MEAT
                    WHSE

                	 	 	
                  8,991

                	 	 	 	
                  3,344

                	 	 	 	
                  12,335

                	 
	
                   S861177659392001

                	
                  06/21/04

                	
                  06/22/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77281—MEAT
                    WHSE

                	 	 	
                  1,000

                	 	 	 	
                  1,523

                	 	 	 	
                  2,523

                	 
	
                   S861177659559001

                	
                  06/24/04

                	
                  06/28/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77281—MEAT
                    WHSE

                	 	 	
                  2,469

                	 	 	 	
                  317

                	 	 	 	
                  2,786

                	 
	
                   S861177659563001

                	
                  06/26/04

                	
                  06/28/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77281—MEAT
                    WHSE

                	 	 	
                  1,056

                	 	 	 	
                  119

                	 	 	 	
                  1,175

                	 
	
                   S861177659660001

                	
                  06/26/04

                	
                  06/30/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77281—MEAT
                    WHSE

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 
	
                   S861177659556001

                	
                  06/27/04

                	
                  06/28/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77281—MEAT
                    WHSE

                	 	 	
                  8,120

                	 	 	 	
                  783

                	 	 	 	
                  8,903

                	 
	
                   S861177659557001

                	
                  06/28/04

                	
                  06/28/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77281—MEAT
                    WHSE

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 
	
                   S861177659558001

                	
                  06/28/04

                	
                  06/28/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77281—MEAT
                    WHSE

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 
	
                   S861177659659001

                	
                  06/30/04

                	
                  06/30/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77281—MEAT
                    WHSE

                	 	 	
                  7,556

                	 	 	 	
                  894

                	 	 	 	
                  8,450

                	 
	
                   S861177659711001

                	
                  07/02/04

                	
                  07/02/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77281—MEAT
                    WHSE

                	 	 	
                  0

                	 	 	 	
                  0

                	 	 	 	
                  0

                	 
	
                   S861177659872001

                	
                  07/05/04

                	
                  07/07/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77281—MEAT
                    WHSE

                	 	 	
                  6,881

                	 	 	 	
                  7,669

                	 	 	 	
                  14,550

                	 

        

        

                         Generated
          06/08/2005 on data valued as of 06/07/2005 using SIGMA version
          04.20.

        

                                                                          Created
          by WHSEOPEN SIGMA.   

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

                                                                                                                               PAGE   8

                                              THE
          GREAT ATLANTIC & PACIFIC TEA COMPANY

                                                  OPEN
          LOSSES AS OF JUNE 7, 2005

        

                                                           CENTRAL
          ISLIP

                                                      WORKERS'
          COMPENSATION

                                                           NOT
          LITIGATED

        

        

        
          	
                  Claim
                    Identification

                	
                  Date
                    Claim Occurred

                	
                  Adjuster
                    Notified

                	
                  O/F

                	
                  Date
                    Claim Closed

                	 	
                  Cov

                	 	
                  Location

                	 	
                  Total
                    Claim Paid to Date $

                	 	 	
                  Total
                    Claim Outstanding $

                	 	 	
                  Total
                    Claim Total Incurred $

                	 
	
                   S861177660653001

                	
                  07/30/04

                	
                  07/30/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77281—MEAT
                    WHSE

                	 	 	
                  6,800

                	 	 	 	
                  528

                	 	 	 	
                  7,328

                	 
	
                   S861177661506001

                	
                  08/27/04

                	
                  08/27/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77281—MEAT
                    WHSE

                	 	 	
                  353

                	 	 	 	
                  147

                	 	 	 	
                  500

                	 
	
                   S861177661849001

                	
                  09/06/04

                	
                  09/07/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77281—MEAT
                    WHSE

                	 	 	
                  9,378

                	 	 	 	
                  7,797

                	 	 	 	
                  17,175

                	 
	
                   S861177661848001

                	
                  09/07/04

                	
                  09/07/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77281—MEAT
                    WHSE

                	 	 	
                  5,927

                	 	 	 	
                  4,582

                	 	 	 	
                  10,509

                	 
	
                   S861177662127001

                	
                  09/15/04

                	
                  09/16/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  0

                	 	 	 	
                  0

                	 
	
                   S861177662945001

                	
                  10/15/04

                	
                  10/15/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  3,329

                	 	 	 	
                  3,491

                	 	 	 	
                  6,820

                	 
	
                   S861177665656001

                	
                  11/09/04

                	
                  02/03/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  6,484

                	 	 	 	
                  2,357

                	 	 	 	
                  8,841

                	 
	
                   S861177663816001

                	
                  11/18/04

                	
                  11/24/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  1,097

                	 	 	 	
                  287

                	 	 	 	
                  1,384

                	 
	
                   S861177663733001

                	
                  11/22/04

                	
                  11/22/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  4,129

                	 	 	 	
                  3,421

                	 	 	 	
                  7,550

                	 
	
                   S861177664046001

                	
                  12/02/04

                	
                  12/02/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  5,514

                	 	 	 	
                  2,281

                	 	 	 	
                  7,795

                	 
	
                   S861177664120001

                	
                  12/03/04

                	
                  12/06/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  1,135

                	 	 	 	
                  1,765

                	 	 	 	
                  2,900

                	 
	
                   S861177664121001

                	
                  12/05/04

                	
                  12/06/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  1,902

                	 	 	 	
                  3,398

                	 	 	 	
                  5,300

                	 
	
                   S861177664154001

                	
                  12/08/04

                	
                  12/08/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  2,167

                	 	 	 	
                  1,633

                	 	 	 	
                  3,800

                	 
	
                   S861177664473001

                	
                  12/16/04

                	
                  12/16/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  629

                	 	 	 	
                  401

                	 	 	 	
                  1,030

                	 
	
                   S861177664528001

                	
                  12/18/04

                	
                  12/20/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  1,550

                	 	 	 	
                  1,550

                	 
	
                   S861177664646001

                	
                  12/22/04

                	
                  12/23/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  1,725

                	 	 	 	
                  1,675

                	 	 	 	
                  3,400

                	 
	
                   S861177664800001

                	
                  12/22/04

                	
                  12/28/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  6,952

                	 	 	 	
                  1,190

                	 	 	 	
                  8,142

                	 
	
                   S861177664799001

                	
                  12/28/04

                	
                  12/28/04

                	
                  O

                	
                  N/A

                	 	 	
                  130

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 
	
                   S861177665141001

                	
                  01/10/05

                	
                  01/12/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  348

                	 	 	 	
                  1,982

                	 	 	 	
                  2,330

                	 
	
                   S861177665142001

                	
                  01/10/05

                	
                  01/12/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  444

                	 	 	 	
                  756

                	 	 	 	
                  1,200

                	 
	
                   S861177665361001

                	
                  01/16/05

                	
                  01/20/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  3,137

                	 	 	 	
                  3,120

                	 	 	 	
                  6,257

                	 
	
                   S861177665276001

                	
                  01/17/05

                	
                  01/17/05

                	
                  O

                	
                  N/A

                	 	 	
                  130

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  250

                	 	 	 	
                  250

                	 
	
                   S861177665447001

                	
                  01/24/05

                	
                  01/24/05

                	
                  O

                	
                  N/A

                	 	 	
                  130

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  250

                	 	 	 	
                  250

                	 
	
                   S861177665488001

                	
                  01/25/05

                	
                  01/26/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  10,849

                	 	 	 	
                  1,068

                	 	 	 	
                  11,917

                	 
	
                   S861177665655001

                	
                  01/25/05

                	
                  02/03/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  334

                	 	 	 	
                  483

                	 	 	 	
                  817

                	 
	
                   S861177665735001

                	
                  02/05/05

                	
                  02/07/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 
	
                   S861177665800001

                	
                  02/09/05

                	
                  02/09/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  5,985

                	 	 	 	
                  3,799

                	 	 	 	
                  9,784

                	 
	
                   S861177665801001

                	
                  02/09/05

                	
                  02/09/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  980

                	 	 	 	
                  980

                	 
	
                   S861177665873001

                	
                  02/14/05

                	
                  02/14/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 
	
                   S861177665981001

                	
                  02/20/05

                	
                  02/21/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  2,095

                	 	 	 	
                  4,045

                	 	 	 	
                  6,140

                	 
	
                   S861177665982001

                	
                  02/21/05

                	
                  02/21/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 
	
                   S861177666507001

                	
                  03/17/05

                	
                  03/17/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  1,535

                	 	 	 	
                  1,082

                	 	 	 	
                  2,617

                	 
	
                   S861177667566001

                	
                  03/21/05

                	
                  05/06/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 
	
                   S861177667262001

                	
                  04/04/05

                	
                  04/25/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  1,044

                	 	 	 	
                  1,766

                	 	 	 	
                  2,810

                	 
	
                   S859377666877001

                	
                  04/07/05

                	
                  04/07/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  2,873

                	 	 	 	
                  2,612

                	 	 	 	
                  5,485

                	 
	
                   S861177666983001

                	
                  04/11/05

                	
                  04/12/05

                	
                  O

                	
                  N/A

                	 	 	
                  130

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 
	
                   S861177667037001

                	
                  04/15/05

                	
                  04/15/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 
	
                   S861177667111001

                	
                  04/18/05

                	
                  04/18/05

                	
                   O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  472

                	 	 	 	
                  628

                	 	 	 	
                  1,100

                	 
	
                   S861177667232001

                	
                  04/22/05

                	
                  04/22/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 
	
                   S861177667320001

                	
                  04/23/05

                	
                  04/27/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  11

                	 	 	 	
                  489

                	 	 	 	
                  500

                	 
	
                   S861177667460001

                	
                  05/02/05

                	
                  05/03/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 

        

        

                         Generated
          06/08/2005 on data valued as of 06/07/2005 using SIGMA version
          04.20.

        

                                                                          Created
          by WHSEOPEN SIGMA. 

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

                                                                                                                                 PAGE   9

                                              THE
          GREAT ATLANTIC & PACIFIC TEA COMPANY

                                                  OPEN
          LOSSES AS OF JUNE 7, 2005

        

                                                           CENTRAL
          ISLIP

                                                      WORKERS'
          COMPENSATION

                                                           NOT
          LITIGATED

        

        

        
          	
                  Claim
                    Identification

                	
                  Date
                    Claim Occurred

                	
                  Adjuster
                    Notified

                	
                  O/F

                	
                  Date
                    Claim Closed

                	 	
                  Cov

                	 	
                  Location

                	 	
                  Total
                    Claim Paid to Date $

                	 	 	
                  Total
                    Claim Outstanding $

                	 	 	
                  Total
                    Claim Total Incurred $

                	 
	
                   S861177667461001

                	
                  05/02/05

                	
                  05/03/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  84

                	 	 	 	
                  416

                	 	 	 	
                  500

                	 
	
                   S861177667780001

                	
                  05/16/05

                	
                  05/16/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 
	
                   S861177667994001

                	
                  05/19/05

                	
                  05/25/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 
	
                   S861177667902001

                	
                  05/21/05

                	
                  05/23/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 
	
                   S861177667992001

                	
                  05/21/05

                	
                  05/25/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 
	
                   S861177667901001

                	
                  05/23/05

                	
                  05/23/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  5,389

                	 	 	 	
                  5,389

                	 
	
                   S861177667903001

                	
                  05/23/05

                	
                  05/23/05

                	
                  O

                	
                  N/A

                	 	 	
                  130

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 
	
                   S861177667990001

                	
                  05/23/05

                	
                  05/25/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 
	
                   S861177668054001

                	
                  05/27/05

                	
                  05/27/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 
	
                   S861177668104001

                	
                  05/31/05

                	
                  05/31/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 
	
                   S861177668162001

                	
                  06/02/05

                	
                  06/02/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  77181—WHSE/DIST

                	 	 	
                  0

                	 	 	 	
                  500

                	 	 	 	
                  500

                	 

        

        

        

        

        

        
 

        

        

                         Generated
          06/08/2005 on data valued as of 06/07/2005 using SIGMA version
          04.20.

        

                                                                          Created
          by WHSEOPEN SIGMA.

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

                                                                                                                                  PAGE  10

                                              THE
          GREAT ATLANTIC & PACIFIC TEA COMPANY

                                                  OPEN
          LOSSES AS OF JUNE 7, 2005

        

                                                              DUNMORE

                                                          AUTO
          LIABILITY

                                                           NOT
          LITIGATED

        

        

        
          	
                  Claim
                    Identification

                	
                  Date
                    Claim Occurred

                	
                  Adjuster
                    Notified

                	
                  O/F

                	
                  Date
                    Claim Closed

                	 	
                  Cov

                	 	
                  Location

                	 	
                  Total
                    Claim Paid to Date $

                	 	 	
                  Total
                    Claim Outstanding $

                	 	 	
                  Total
                    Claim Total Incurred $

                	 
	
                   S859321182371001

                	
                  12/14/00

                	
                  01/04/01

                	
                  O

                	
                  05/11/01

                	 	 	
                  112

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,250

                	 	 	 	
                  1,250

                	 
	
                   S859377664514001

                	
                  12/10/04

                	
                  12/20/04

                	
                  O

                	
                  N/A

                	 	 	
                  112

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  2,000

                	 	 	 	
                  2,000

                	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

        

        

        

        

         

        

        

        

        

        

        

        

        

                         Generated
          06/08/2005 on data valued as of 06/07/2005 using SIGMA version
          04.20.

        

                                                                          Created
          by WHSEOPEN SIGMA.      

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

                                                                                                                            PAGE  11

                                              THE
          GREAT ATLANTIC & PACIFIC TEA COMPANY

                                                  OPEN
          LOSSES AS OF JUNE 7, 2005

        

                                                              DUNMORE

                                                      WORKERS'
          COMPENSATION

                                                           NOT
          LITIGATED

        

        

        
          	
                  Claim
                    Identification

                	
                  Date
                    Claim Occurred

                	
                  Adjuster
                    Notified

                	
                  O/F

                	
                  Date
                    Claim Closed

                	 	
                  Cov

                	 	
                  Location

                	 	
                  Total
                    Claim Paid to Date $

                	 	 	
                  Total
                    Claim Outstanding $

                	 	 	
                  Total
                    Claim Total Incurred $

                	 
	
                   S316221137661001

                	
                  05/07/82

                	
                  05/11/82

                	
                  O

                	
                  12/30/94

                	 	 	
                  127

                	 	
                  20150—DUNMORE,

                	 	 	
                  254,368

                	 	 	 	
                  28,818

                	 	 	 	
                  283,185

                	 
	
                   S861121186457001

                	
                  07/31/02

                	
                  08/02/02

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  20150—DUNMORE,

                	 	 	
                  3,376

                	 	 	 	
                  7,624

                	 	 	 	
                  11,000

                	 
	
                   S861121187451001

                	
                  01/27/03

                	
                  01/28/03

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S861121188034001

                	
                  04/22/03

                	
                  05/07/03

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  20150—DUNMORE,

                	 	 	
                  19,472

                	 	 	 	
                  4,901

                	 	 	 	
                  24,373

                	 
	
                   S861121189290001

                	
                  06/10/03

                	
                  01/09/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S861121188701001

                	
                  08/14/03

                	
                  09/13/03

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S861121188703001

                	
                  09/09/03

                	
                  09/13/03

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  18

                	 	 	 	
                  1,132

                	 	 	 	
                  1,150

                	 
	
                   S861121188932001

                	
                  10/21/03

                	
                  10/27/03

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S861121189494001

                	
                  02/03/04

                	
                  02/09/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S861121189566001

                	
                  02/10/04

                	
                  02/18/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  20150—DUNMORE,

                	 	 	
                  8,119

                	 	 	 	
                  2,881

                	 	 	 	
                  11,000

                	 
	
                   S861121189567001

                	
                  02/16/04

                	
                  02/18/04

                	
                  O

                	
                  N/A

                	 	 	
                  130

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1

                	 	 	 	
                  1

                	 
	
                   S861121189965001

                	
                  04/28/04

                	
                  05/05/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,150

                	 	 	 	
                  1,150

                	 
	
                   S861121189966001

                	
                  04/30/04

                	
                  05/05/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  6

                	 	 	 	
                  1,644

                	 	 	 	
                  1,650

                	 
	
                   S861121189994001

                	
                  05/11/04

                	
                  05/17/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S8611ECK20243001

                	
                  05/24/04

                	
                  05/26/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S861121190242001

                	
                  07/14/04

                	
                  07/19/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  20150—DUNMORE,

                	 	 	
                  6,933

                	 	 	 	
                  7,367

                	 	 	 	
                  14,300

                	 
	
                   S861121190390001

                	
                  08/25/04

                	
                  08/27/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  20150—DUNMORE,

                	 	 	
                  3,064

                	 	 	 	
                  1,236

                	 	 	 	
                  4,300

                	 
	
                   S861121190459001

                	
                  09/01/04

                	
                  09/14/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  20150—DUNMORE,

                	 	 	
                  6,254

                	 	 	 	
                  10,046

                	 	 	 	
                  16,300

                	 
	
                   S861121190468001

                	
                  09/13/04

                	
                  09/16/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S861121190600001

                	
                  10/04/04

                	
                  10/06/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,150

                	 	 	 	
                  1,150

                	 
	
                   S861121190728001

                	
                  10/07/04

                	
                  11/24/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S861121190644001

                	
                  10/18/04

                	
                  10/22/04

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  20150—DUNMORE,

                	 	 	
                  6,026

                	 	 	 	
                  7,039

                	 	 	 	
                  13,065

                	 
	
                   S861121190706001

                	
                  11/08/04

                	
                  11/16/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,150

                	 	 	 	
                  1,150

                	 
	
                   S861121190710001

                	
                  11/12/04

                	
                  11/16/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  750

                	 	 	 	
                  1,650

                	 	 	 	
                  2,400

                	 
	
                   S861121190707001

                	
                  11/15/04

                	
                  11/16/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S861121190729001

                	
                  11/22/04

                	
                  11/24/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S861121190789001

                	
                  12/01/04

                	
                  12/03/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  6,000

                	 	 	 	
                  6,000

                	 
	
                   S861121190790001

                	
                  12/01/04

                	
                  12/03/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S861121190835001

                	
                  12/14/04

                	
                  12/16/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  14

                	 	 	 	
                  4,386

                	 	 	 	
                  4,400

                	 
	
                   S861121190836001

                	
                  12/16/04

                	
                  12/16/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,150

                	 	 	 	
                  1,150

                	 
	
                   S861121190837001

                	
                  12/16/04

                	
                  12/16/04

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S861121190907001

                	
                  12/27/04

                	
                  01/07/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  353

                	 	 	 	
                  147

                	 	 	 	
                  500

                	 
	
                   S8611ECK18215001

                	
                  02/03/05

                	
                  02/22/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  20150—DUNMORE,

                	 	 	
                  4,191

                	 	 	 	
                  5,559

                	 	 	 	
                  9,750

                	 
	
                   S8611ECK18393001

                	
                  02/28/05

                	
                  03/02/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0 1

                	 	 	 	
                  ,650

                	 	 	 	
                  1,650

                	 
	
                   S8611ECK18556001

                	
                  03/07/05

                	
                  03/09/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  708

                	 	 	 	
                  8,442

                	 	 	 	
                  9,150

                	 
	
                   S8611ECK18630001

                	
                  03/10/05

                	
                  03/11/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S8611ECK19315001

                	
                  04/15/05

                	
                  04/15/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  20150—DUNMORE,

                	 	 	
                  1,289

                	 	 	 	
                  7,374

                	 	 	 	
                  8,663

                	 
	
                   S8611ECK19502001

                	
                  04/20/05

                	
                  04/25/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  69

                	 	 	 	
                  2,802

                	 	 	 	
                  2,871

                	 
	
                   S8611ECK19517001

                	
                  04/25/05

                	
                  04/25/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S8611ECK19686001

                	
                  04/28/05

                	
                  05/02/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  27

                	 	 	 	
                  1,623

                	 	 	 	
                  1,650

                	 
	
                   S8611ECK19688001

                	
                  04/29/05

                	
                  05/02/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S8611ECK19887001

                	
                  04/29/05

                	
                  05/12/05

                	
                  O

                	
                  N/A

                	 	 	
                  127

                	 	
                  20150—DUNMORE,

                	 	 	
                  305

                	 	 	 	
                  595

                	 	 	 	
                  900

                	 

        

        

                         Generated
          06/08/2005 on data valued as of 06/07/2005 using SIGMA version
          04.20.

        

                                                                          Created
          by WHSEOPEN SIGMA. 

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

                                                                                                                                 PAGE  12

                                              THE
          GREAT ATLANTIC & PACIFIC TEA COMPANY

                                                  OPEN
          LOSSES AS OF JUNE 7, 2005

        

                                                              DUNMORE

                                                      WORKERS'
          COMPENSATION

                                                           NOT
          LITIGATED

        

        

        
          	
                  Claim
                    Identification

                	
                  Date
                    Claim Occurred

                	
                  Adjusted
                    Notified

                	
                  O/F

                	
                  Date
                    Claim Closed

                	 	
                  Cov

                	 	
                  Location

                	 	
                  Total
                    Claim Paid to Date $

                	 	 	
                  Total
                    Claim Outstanding $

                	 	 	
                  Total
                    Claim Total Incurred $

                	 
	
                   S8611ECK19702001

                	
                  05/02/05

                	
                  05/03/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S8611ECK19758001

                	
                  05/04/05

                	
                  05/05/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S8611ECK19764001

                	
                  05/04/05

                	
                  05/05/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  650

                	 	 	 	
                  650

                	 
	
                   S8611ECK19757001

                	
                  05/05/05

                	
                  05/05/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  23

                	 	 	 	
                  1,627

                	 	 	 	
                  1,650

                	 
	
                   S8611ECK19871001

                	
                  05/09/05

                	
                  05/11/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S8611ECK20404001

                	
                  05/11/05

                	
                  06/02/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S8611ECK19923001

                	
                  05/12/05

                	
                  05/13/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S8611ECK20051001

                	
                  05/16/05

                	
                  05/18/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S8611ECK20053001

                	
                  05/17/05

                	
                  05/18/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S8611ECK20083001

                	
                  05/19/05

                	
                  05/19/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  3,550

                	 	 	 	
                  3,550

                	 
	
                   S8611ECK20105001

                	
                  05/19/05

                	
                  05/20/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S8611ECK20440001

                	
                  05/23/05

                	
                  06/03/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S8611ECK20244001

                	
                  05/24/05

                	
                  05/26/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 
	
                   S8611ECK20405001

                	
                  06/01/05

                	
                  06/02/05

                	
                  O

                	
                  N/A

                	 	 	
                  126

                	 	
                  20150—DUNMORE,

                	 	 	
                  0

                	 	 	 	
                  1,650

                	 	 	 	
                  1,650

                	 

        

        

         

        

        

        

        

        

        

                         Generated
          06/08/2005 on data valued as of 06/07/2005 using SIGMA version
          04.20.

        

                                                                          Created
          by WHSEOPEN SIGMA. 

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

                                                                                                                                 PAGE  13

                                              THE
          GREAT ATLANTIC & PACIFIC TEA COMPANY

                                                  OPEN
          LOSSES AS OF JUNE 7, 2005

        

                                                            NEW
          ORLEANS

                                                          AUTO
          LIABILITY

                                                           NOT
          LITIGATED

        

        

        
          	
                  Claim
                    Identification

                	
                  Date
                    Claim Occurred

                	
                  Adjuster
                    Notified

                	
                  O/F

                	
                  Date
                    Claim Closed

                	 	
                  Cov

                	 	
                  Location

                	 	
                  Total
                    Claim Paid to Date $

                	 	 	
                  Total
                    Claim Outstanding $

                	 	 	
                  Total
                    Claim Total Incurred $

                	 
	
                   S8593ETL01405001

                	
                  08/27/04

                	
                  08/27/04

                	
                  O

                	
                  N/A

                	 	 	
                  112

                	 	
                  47871—HARAHAN,

                	 	 	
                  2,402

                	 	 	 	
                  348

                	 	 	 	
                  2,750

                	 
	
                   S8593ETL01943001

                	
                  10/16/04

                	
                  10/18/04

                	
                  O

                	
                  N/A

                	 	 	
                  112

                	 	
                  47871—HARAHAN,

                	 	 	
                  201

                	 	 	 	
                  2,549

                	 	 	 	
                  2,750

                	 
	
                   S8593ETL02146001

                	
                  11/05/04

                	
                  11/05/04

                	
                  O

                	
                  N/A

                	 	 	
                  111

                	 	
                  47871—HARAHAN,

                	 	 	
                  0

                	 	 	 	
                  2,550

                	 	 	 	
                  2,550

                	 
	
                   S8593ETL02146002

                	
                  11/05/04

                	
                  11/05/04

                	
                  O

                	
                  N/A

                	 	 	
                  112

                	 	
                  47871—HARAHAN,

                	 	 	
                  12,035

                	 	 	 	
                  339

                	 	 	 	
                  12,373

                	 
	
                   S8593ETL02146003

                	
                  11/05/04

                	
                  11/05/04

                	
                  O

                	
                  N/A

                	 	 	
                  112

                	 	
                  47871—HARAHAN,

                	 	 	
                  0

                	 	 	 	
                  0

                	 	 	 	
                  0

                	 

        

        

        

        
 

        

        

        

        

        

                         Generated
          06/08/2005 on data valued as of 06/07/2005 using SIGMA version
          04.20.

        

                                                                          Created
          by WHSEOPEN SIGMA.   

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

                                                                                                                               PAGE  14

                                              THE
          GREAT ATLANTIC & PACIFIC TEA COMPANY

                                                  OPEN
          LOSSES AS OF JUNE 7, 2005

        

                                                            NEW
          ORLEANS

                                                      WORKERS'
          COMPENSATION

                                                           NOT
          LITIGATED

        

        
          	
                  Claim
                    Identification

                	
                  Date
                    Claim Occurred

                	
                  Adjuster
                    Notified

                	
                  O/F

                	
                  Date
                    Claim Closed

                	 	
                  Cov

                	 	
                  Location

                	 	
                  Total
                    Claim Paid to Date $

                	 	 	
                  Total
                    Claim Outstanding $

                	 	 	
                  Total
                    Claim Total Incurred $

                	 
	
                   S861151384027001

                	
                   11/07/00

                	
                   11/08/00

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   47181—NEW
                    ORLEA

                	 	 	
                  130,721

                	 	 	 	
                  26,079

                	 	 	 	
                  156,800

                	 
	
                   S861151390465001

                	
                   04/29/02

                	
                   04/30/02

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   47871—HARAHAN,

                	 	 	
                  47,666

                	 	 	 	
                  6,997

                	 	 	 	
                  54,662

                	 
	
                   S861151392073001

                	
                   09/17/02

                	
                   09/19/02

                	
                  O

                	
                     N/A

                	 	 	
                  127

                	 	
                   47871—HARAHAN,

                	 	 	
                  86,079

                	 	 	 	
                  12,520

                	 	 	 	
                  98,599

                	 
	
                   S861151398547001

                	
                   01/30/04

                	
                   02/02/04

                	
                  O

                	
                     N/A

                	 	 	
                  126

                	 	
                   47871—HARAHAN,

                	 	 	
                  346

                	 	 	 	
                  204

                	 	 	 	
                  550

                	 
	
                   S8611ETL02200001

                	
                   11/03/04

                	
                   11/09/04

                	
                  O

                	
                     N/A

                	 	 	
                  126

                	 	
                   47923—NEW
                    ORLEA

                	 	 	
                  8,848

                	 	 	 	
                  6,152

                	 	 	 	
                  15,000

                	 
	
                   S8593ETL03589001

                	
                   04/09/05

                	
                   04/11/05

                	
                   O

                	
                     N/A

                	 	 	
                  127

                	 	
                   47871—HARAHAN,

                	 	 	
                  5,277

                	 	 	 	
                  12,935

                	 	 	 	
                  18,212

                	 

        

        

        

        

        
 

        

        

        

        

        

        

        

                         Generated
          06/08/2005 on data valued as of 06/07/2005 using SIGMA version
          04.20.

        

                                                                          Created
          by WHSEOPEN SIGMA.

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

                                                                                                                                  PAGE  15

                                              THE
          GREAT ATLANTIC & PACIFIC TEA COMPANY

                                                  OPEN
          LOSSES AS OF JUNE 7, 2005

        

        

        

        

        

        

        
          	
                  Claim

                  Identification

                	
                  Date

                  Claim

                  Occurred

                	
                  Adjuster

                  Notified

                	
                  O/F

                	
                  Date

                  Claim

                  Closed

                	
                  Cov

                	
                  Location

                	
                  Total
                    claim

                  Paid
                    to Date $

                	
                  Total
                    Claim

                  Outstanding
                    $

                	
                  Total
                    Claim

                  Total
                    Incurred $

                

        

        

        

        

        

        

         *GRAND
          TOTAL

                                                                                 6,095,272     2,016,781        8,112,053

        

        

        

         REPORT
          IS LIMITED TO CLAIMS WHERE:  LOC_ORACLE
          AMONG('0008','0016','0020','0030') STATUS = 'O' DELETE_FLAG NE
          'Y'

        

        

        

        

        
 

        

        

        

        

                         Generated
          06/08/2005 on data valued as of 06/07/2005 using SIGMA version
          04.20.

        

                                                                          Created
          by WHSEOPEN SIGMA.

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

       

      

      Schedule
        4.1(p)(i)(B)

       

      Employment
        Agreements, Severance Agreements and Severance Plans

       

      With
        Respect to Af­fected Employees

       

      

       

      Employment
        Agreements:

       

      None

       

      

       

      Severance
        Agreements:

       

      None

       

      

       

      Severance
        Plans:

       

      None
        except The Great Atlantic &
Pacific Tea Company, Inc. Severance Policy  Fiscal Year
        2005

       

      

       

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      Schedule
        4.1(p)(iii)

       

      Contributions
        Made to Each Multiemployer Pension Plan

       

      For
        the
        Most Recent 5 Plan Years

       

      

       

      
        	
                Teamsters
                  Local 707 Pension Fund:

              
	 	 	 	 
	 	
                2004

              	
                -

              	
                $1,114,027.

              
	 	
                2003

              	
                 -

              	
                   1,100,120.

              
	 	
                2002

              	
                -

              	
                       934,845.

              
	 	
                2001

              	
                -

              	
                       802,902.

              
	 	
                2000

              	
                -

              	
                    1,014,088.

              
	 	 	 	 
	
                Central
                  Pennsylvania Teamsters Pension Fund:

              
	 	 	 	 
	 	
                2004

              	
                -

              	
                  $423,940.

              
	 	
                2003

              	
                -

              	
                    448,888.

              
	 	
                2002

              	
                -

              	
                    411,161.

              
	 	
                2001

              	
                -

              	
                    414,405.

              
	 	
                2000

              	
                -

              	
                   
                  411,201.

              
	 	 	 	 
	
                Operating
                  Engineers Locals 30 and 30A Pension Fund:

              
	 	 	 	 
	 	
                2004

              	
                -

              	
                  $30,872.

              
	 	
                2003

              	
                -

              	
                    41,653.

              
	 	
                2002

              	
                -

              	
                    39,544.

              
	 	
                2001

              	
                -

              	
                    47,467.

              
	 	
                2000

              	
                -

              	
                    51,829.

              

      

       

       

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      Schedule
        8.8

      
        Conveyance
          Taxes

         

        

         

        

         

        Maryland:              State
          Transfer Tax (.5%)

        County
          Transfer Tax (1.5%)

        Recordation
          Tax ($5.00/$1000
          rounded)

        

        Pennsylvania:       2%
          of Purchase Price

         

        Louisiana:  N/A

         

        New
          York:
          N/A

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      
        Schedule
          8.17

         

        IT
          Services

         

        

        

        Infrastructure
          Support Services

        

        *           Telecom
          Services

        *           Network
          Services

        *           Desktop
          Support Services

        *           RF
          Support Services

        *           All
          after hours on-call support services as provided today

        

        Application
          Support Services

        

        *           Tricepts
          Warehouse System Support

        *           Chain
          Stores Warehouse System Support

        *           SMS
          Stock Locator System

        *           SMS
          Tote Sorting System

        *           Physical
          Inventory System

        *           Perishable
          Warehouse Inventory System

        *           Payroll
          Support Services

        *           Kronos
          T&A Support services

        *           Manugistics
          Routing System

        *           Manugistics
          Network Transport System

        *           Slot
          Info - Warehouse Slotting System

        *           Reclamation
          System

        *           All
          after hours on-call support services as provided today

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Schedule
          12.1(g)

         

        Assumed
          Collective Bargaining Agreements

         

        

        

        
          	
                  Baltimore

                
	 	 	 	 
	
                  IBT
                    Local 570

                	
                  Warehousemen
                    (EDP #6000)

                	
                  Exp.
                    04/02/06

                	 
	
                  IBT
                    Local 27

                	
                  Meat
                    (EDP #2307)

                	
                  Exp.
                    05/14/05

                	 
	
                  IBT
                    Local 355

                	
                  Warehouse
                    Maintenance (EDP #2309)

                	
                  Exp.
                    08/20/05

                	 
	 	 	 	 
	
                  Dunmore
                    (Supermarket Service Corp.)

                
	 	 	 	 
	
                  IBT
                    Local 229

                	
                  Warehousemen
                    and Drivers

                	
                  Exp.
                    03/27/06

                	 
	 	 	 	 
	
                  Islip

                
	 	 	 	 
	
                  IBT
                    Local 707

                	
                  Warehousemen
                    (Waldbaum’s) EDP #8010

                	
                  Exp.
                    12/18/04

                	 
	 	
                  Memorandum
                    of Agreement Extending CBA

                	
                  Exp.
                    03/11/05

                	 
	
                  IBT
                    Local 707

                	
                  Clerks
                    (Waldbaum’s) EDP #8009

                	
                  Exp.
                    05/07/05

                	 
	
                  OP
                    Eng Local 30, 30A

                	
                  Maintenance
                    (Waldbaum’s) EDP #8005 (in negotiations)

                	
                  Exp.
                    08/20/05

                	 
	 	 	 	 
	 	 	 	 
	
                  New
                    Orleans

                
	 	 	 	 
	
                  IBT
                    Local 270

                	
                  Drivers
                    and Warehousemen (EDP #1012)

                	
                  Exp.
                    10/09/04

                	 
	
                  IBT
                    Local 270

                	
                  Maintenance

                	
                  Exp.
                    10/09/04

                	 
	
                  IBT
                    Local 270

                	
                  Agreement
                    Extension

                	
                  Exp.
                    10/08/06

                	 
	
                  IBT
                    Local 270

                	
                  Side
                    Letter to Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]